Loading...
HomeMy WebLinkAbout01-25-16 Regular Meeting of La Porte City Council Council Agenda Item Council Agenda Item January 25, 2016 January 25, 2016 1.CALL TO ORDERCALL TO ORDER ––The invocation will be given by Clark Askins.The invocation will be given by Clark Askins. 2.INVOCATIONINVOCATION   ––The Pledge of Allegiance will be led by Councilmember Chuck The Pledge of Allegiance will be led by Councilmember Chuck 3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCE Engelken.Engelken.   4.PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONSPRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS Recognition Recognition -- Retirement of Burnett "Burnie" Willis (City of La Porte Finance Department) Retirement of Burnett "Burnie" Willis (City of La Porte Finance Department) - (a) Mayor RigbyMayor Rigby (Limited to five minutes per person.) (Limited to five minutes per person.) 5.PUBLIC COMMENTSPUBLIC COMMENTS ****************************************************************** ****************************************************************** ЌЉ —ĻğƩƭ .ǒƩƓĻƷƷ ‘źƌƌźƭ ĬĻŭğƓ ŷĻƩ ĭğƩĻĻƩ ğƭ ğ aĻƷĻƩ wĻğķĻƩ ǞźƷŷ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻ ƚƓ WğƓǒğƩǤ ЋАͲ ЊВБЏ ğƓķ Ǟźƌƌ ƩĻƷźƩĻ ǞźƷŷ ЌЉ ǤĻğƩƭ ƚŅ ƭĻƩǝźĭĻ ƚƓ WğƓǒğƩǤ ЋАͲ ЋЉЊЏ͵ .ǒƩƓźĻ ƷƩğƓƭŅĻƩƩĻķ źƓƷƚ ƷŷĻ ƚŅŅźĭĻ ğƓķ ŷğƭ ĬĻĻƓ ğ /ǒƭƷƚƒĻƩ {ĻƩǝźĭĻ /ƌĻƩƉ źƓ ƷŷĻ ƷźƌźƷǤ .źƌƌźƓŭ ķźǝźƭźƚƓ ƭźƓĭĻ WǒƓĻ ЋЎͲ ЊВВЋ͵ ƓƷźƌ ƭŷĻ ƒƚǝĻķ Ʒƚ ƷŷĻ ǞźƓķƚǞ źƓ ƷŷĻ ŅƩƚƓƷ ƌƚĬĬǤͲ .ǒƩƓźĻ Ǟğƭ ğ ǞĻƌƌΏƉƓƚǞƓ ŅğĭĻ ĬǤ ĭǒƭƷƚƒĻƩƭ Ǟŷƚ ǒƷźƌźǩĻķ ƷŷĻ ķƩźǝĻ ƷŷƩƚǒŭŷ Ʒƚ ƒğƉĻ ƷŷĻźƩ ƦğǤƒĻƓƷƭ͵ .ǒƩƓźĻ ŷğƭ ĬĻĻƓ ğ ķĻķźĭğƷĻķͲ ķĻƦĻƓķğĬƌĻ ğƓķ ǝğƌǒĻķ ƒĻƒĬĻƩ ƚŅ ƷŷĻ CźƓğƓĭĻ ƷĻğƒ͵ ‘ŷźƌĻ ǞĻ Ǟźƭŷ ŷĻƩ ƷŷĻ ĬĻƭƷ ğƭ ƭŷĻ ĬĻŭźƓƭ ğ ƓĻǞ ĭŷğƦƷĻƩ źƓ ŷĻƩ ƌźŅĻͲ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻ źƭ ŭƚźƓŭ Ʒƚ ƒźƭƭ ŷĻƩ ŭƩĻğƷƌǤ͵ tƌĻğƭĻ ƆƚźƓ ƒĻ źƓ ƷŷğƓƉźƓŭ aƭ͵ .ǒƩƓĻƷƷ ‘źƌƌźƭ ŅƚƩ ŷĻƩ ЌЉ ǤĻğƩƭ ƚŅ ķĻķźĭğƷĻķ ƭĻƩǝźĭĻ Ʒƚ ƚǒƩ ĭƚƒƒǒƓźƷǤ͵ Council Agenda Item Council Agenda Item January 25, 2016 January 25, 2016 6.CONSENT AGENDACONSENT AGENDA (All consent agenda items are considered routine by City Council and will be enacted by (All consent agenda items are considered routine by City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember requests an item be one motion. There will be no separate discussion of these items unless a Councilmember requests an item be removed and considered separately.)removed and considered separately.) Consider approval or other action regarding the minutes of the City Council meeting held on Consider approval or other action regarding the minutes of the City Council meeting held on (a) January 11, 2016 January 11, 2016 -- P. Fogarty P. Fogarty Consider approval or other action regarding a professional services agreement with HDR Consider approval or other action regarding a professional services agreement with HDR (b) Engineering, Inc., for onEngineering, Inc., for on--going GIS technical services going GIS technical services -- B. Sterling B. Sterling Consider approval or other action authorizing expenditure by the La Porte Development Consider approval or other action authorizing expenditure by the La Porte Development (c) Corporation for an enhancement grant in an amount not to exceed $42,057.86, payable to Corporation for an enhancement grant in an amount not to exceed $42,057.86, payable to Brotamonte Asset 1, LLC., for infrastructure improvements to apartment building complex Brotamonte Asset 1, LLC., for infrastructure improvements to apartment building complex located at 315 N. 2nd Street located at 315 N. 2nd Street -- S. Livingston S. Livingston Consider approval or other action authorizing expenditure by the La Porte Development Consider approval or other action authorizing expenditure by the La Porte Development (d) Corporation for an incentive grant in an amount not to exceed $152,889.82, payable to Corporation for an incentive grant in an amount not to exceed $152,889.82, payable to Fischer's Hardware, Inc., for infrastructure improvements to property located at 1010 S. Fischer's Hardware, Inc., for infrastructure improvements to property located at 1010 S. Broadway Street Broadway Street -- S. Livingston S. Livingston Consider approval or other action regarding a Resolution requesting financial assistance from Consider approval or other action regarding a Resolution requesting financial assistance from (e) the Texas Water Development Board the Texas Water Development Board -- D. Pennell D. Pennell Consider approval or other action regarding a Resolution designating the City of La Porte as Consider approval or other action regarding a Resolution designating the City of La Porte as (f) the management agency for wastewater collection and treatment the management agency for wastewater collection and treatment -- D. Pennell D. Pennell Consider approval or other action regarding purchase of Neptune meters from HD SupplyConsider approval or other action regarding purchase of Neptune meters from HD Supply- (g) Houston Houston -- M. Dolby M. Dolby Consider approval or other action regarding a Resolution adopting an AntiConsider approval or other action regarding a Resolution adopting an Anti--NIMBYism (Not in NIMBYism (Not in (h) my Backyard) Action Plan for the City of La Porte my Backyard) Action Plan for the City of La Porte -- T. Tietjens T. Tietjens Consider approval or other action regarding an Ordinance amending Chapter 50 "Parks and Consider approval or other action regarding an Ordinance amending Chapter 50 "Parks and (i) Recreation" of the Code of Ordinances of the City of La Porte by adding rules for renters and Recreation" of the Code of Ordinances of the City of La Porte by adding rules for renters and open riding users utilizing the Livestock and Rodeo Arena open riding users utilizing the Livestock and Rodeo Arena -- R. Epting R. Epting ****************************************************************** ****************************************************************** LOUIS RIGBY DARYL LEONARD Mayor Councilmember District 3 JOHN ZEMANEK KRISTIN MARTIN Councilmember At Large A Councilmember District 4 DOTTIE KAMINSKI JAY MARTIN Councilmember At Large B Mayor Pro-Tem DANNY EARP Councilmember District 5 Councilmember District 1 MIKE CLAUSEN CHUCK ENGELKEN Councilmember District 6 Councilmember District 2 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF LA PORTE JANUARY 11, 2016 Monday January 11, 2016, The City Council of the City of La Porte met in a regular meeting on at the City 6:00 p.m Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at . to consider the following items of business: Mayor Rigby called the meeting to order at 6:00 p.m. Members of Council present: Councilmembers Engelken, Earp, Zemanek, Kaminski, K. Martin, J. Martin, and Clausen. Absent: Councilmember Leonard. Also present were City Secretary Patrice Fogarty, City Manager Corby Alexander, and Assistant City Attorney Clark Askins. 2. INVOCATION – The invocation was given by Don Hill, La Porte InterChurch Council. 3. PLEDGE OF ALLEGIANCE – The Pledge of Allegiance was led by Mayor Rigby. 4. PUBLIC COMMENTS (Limited to five minutes per person.) Bill Scott, 1722 Lomax School Rd., addressed Council with concerns regarding notices to abate he received from Code Enforcement. 5. CONSENT AGENDA (All consent agenda items are considered routine by City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember requests an item be removed and considered separately.) (a) Consider approval or other action regarding the minutes of the Regular City Council Meeting held on December 14, 2015 and Special Called Meeting held on December 21, 2015 – P. Fogarty (b) Consider approval or other action regarding an Ordinance ordering the May 7, 2016, General Election of the City of La Porte – P. Fogarty (c) Consider approval or other action regarding an Interlocal Agreement between the City of La Porte; La Porte Independent School District and La Porte Fire Control, Prevention and Emergency Medical Services District for Joint Elections – P. Fogarty (d) Consider approval or other action ratifying the appointment of Lawrence Stockham to the Planning and Zoning Commission – P. Fogarty (e) Consider approval or other action regarding Vehicle Replacements for Fiscal Year 2015- 2016 – D. Pennell (f) Consider approval or other action regarding a Resolution of the City of La Porte, Texas seeking designation as a Management Agency for Wastewater Collection and Treatment – D. Pennell 15 Page of January 11, 2016, Council Meeting Minutes (g) Consider approval or other action regarding a Resolution adopting a revised Official Zoning Map for the City of La Porte – E. Ensey (h) Consider approval or other action awarding Bid No. 16007 for Demolition of Property located at 330 Bayside Dr. – R. Davidson (i) Consider approval or other action authorizing the City Manager to execute a Water Service Agreement and a Sanitary Sewer Service Agreement with Air Liquide Large Industries U.S., LP located at 11426 Fairmont Parkway in the Bayport industrial District – T. Tietjens (j) Consider approval or other action authorizing the Planning and Development Director to execute a Pipeline Permit to Down Hydrocarbons and Resources, LLC for the final phase of construction of a 12” Ethan pipeline within in the City of La Porte – T. Tietjens (k) Consider approval or other action regarding an Ordinance vacating, abandoning, and closing a portion of the West Madison Street Right-of-Way - T. Tietjens City Manager Corby Alexander requested Item F be removed from consideration. Regarding Item J, Councilmember Zemanek asked the timeline for construction of the project. Planning and Development Director Tim Tietjens responded the permit issued is for 6 months. Ordinance 2015-3616: Prior to council action, Assistant City Attorney Clark Askins read the caption of AN ORDINANCE ORDERING THE REGULAR ANNUAL ELECTION OF THE CITY OF LA PORTE; PROVIDING FOR A RUN-OFF ELECTION, IF NECESSARY; DESIGNATING ELECTION PRECINCTS AND POLLING PLACES; PROVIDING FOR A JOINT ELECTION WITH THE LA PORTE INDEPENDENT SCHOOL DISTRICT AND THE LA PORTE FIRE CONTROL, PREVENTION AND EMERGENCY MEDICAL DISTRICT; PROVIDING FOR THE USE OF VOTING MACHINES; APPOINTING ELECTION OFFICIALS; PROVIDING FOR METHOD AND DATES OF EARLY VOTING; PROVIDING FOR AN EARLY VOTING BALLOT BOARD; PROVIDING FOR RETURN AND CANVASS OF VOTES OF SAID ELECTION; PROVIDING FOR NOTICE; PROVIDING A SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Ordinance 2015-3617: Prior to council action, Assistant City Attorney Clark Askins read the caption of AN ORDINANCE VACATING, ABANDONING AND CLOSING A PORTION OF THE WEST MADISON STREET RIGHT-OF-WAY; RETAINING EASEMENTS FOR EXISTING UTILITIES; AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED TO THE ADJOINING LANDOWNER, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Unanimously Councilmember Engelken moved to approve the Consent Agenda items pursuant to staff MOTION PASSED UNANIMOUSLY 8/0. recommendations. Councilmember Zemanek seconded. Councilmember Leonard was absent. 6. PUBLIC HEARINGS AND ASSOCIATED ORDINANCES (a) Public hearings to receive comments regarding the recommendation by the Planning and Zoning Commission to approve an amendment to the Future Land Use Map component of the La Porte Comprehensive Plan for a 20-acre tract of land located on State Highway 146, a quarter of a mile north of Wharton Weems Blvd., to change use designation from “Low Density Residential;” to 1) “Commercial,” 2) “Mixed Use,” and 3) “Mid to High-Density Residential;” consider approval or other action regarding an Ordinance amending the Future Land Use Map component of the La Porte Comprehensive Plan for a 20-acre tract of land located on State Highway 146, a quarter of a mile north of Wharton Weems Blvd., to change use designation from “Low Density Residential;” to 1) “Commercial,” 2) “Mixed Use,” and 3) “Mid to High-Density Residential;” – E. Ensey The public hearing opened at 6:15 p.m. City Planner Eric Ensey presented a summary and recommendation. 25 Page of January 11, 2016, Council Meeting Minutes David Janda, 3601 E. Desert Run, addressed Council and spoke in favor of the proposed La Porte Town Center. Billy Hardcastle, 1504 Cedar Cove, addressed Council and spoke in favor of the proposed La Porte Town Center. Paula Wohnoutke, 9919 Rocky Hollow Rd., addressed Council and spoke in favor of the proposed La Porte Town Center. Maggie Anderson, 909 Garden Walk, addressed Council and spoke in favor of the proposed La Porte Town Center. Joan Geigel, 906 Garden Walk, addressed Council and spoke in opposition of the proposed La Porte Town Center. Douglas Anderson, 821 S. Virginia St., addressed Council and spoke in favor of the proposed La Porte Town Center. Janie Quarles, 911 Garden Walk, addressed Council and spoke in favor of the proposed La Porte Town Center. Aubry Sartori, 215 S. Broadway, addressed Council and spoke in favor of the proposed La Porte Town Center. George Sanders, 1311 Nantucket Dr., Houston addressed Council in favor of the proposed La Porte Town Center project. David Klingman, 3810 Pecan Circle, addressed Council and spoke in favor of the proposed La Porte Town Center. Rene Garrett, 1001 Garden Walk, addressed Council and spoke in favor of the proposed La Porte Town Center. Norma Elliott, 11621 North D Street, addressed Council and spoke in favor of the proposed La Porte Town Center. Maggie Allen, 2306 Eagle Ln., addressed Council and spoke in favor of the proposed La Porte Town Center. Kathy Gilley, 4919 Rainwater Dr., Pasadena addressed Council and spoke in favor of the proposed La Porte Town Center. Chuck Rosa, 812 S. Virginia St., addressed Council and spoke in favor of the proposed La Porte Town Center if there are not any grants to be awarded. Vincent Worley, addressed Council and spoke in favor of the proposed La Porte Town Center and advised of Doug Sanders’ irreplaceable collections. The public hearing closed at 7:12 p.m. Councilmember Engelken moved to approve an Ordinance amending the Future Land Use Map component of the La Porte Comprehensive Plan for a 20-acre tract of land located on State Highway 146, a quarter of a mile north of Wharton Weems Blvd., to change use designation from “Low Density Residential;” to 1) “Commercial,” 2) “Mixed Use,” and 3) “Mid to High-Density MOTION PASSED UNANIMOUSLY 8/0. Residential.” Councilmember Zemanek seconded. Councilmember Leonard was absent. 35 Page of January 11, 2016, Council Meeting Minutes Ordinance 2016-3618: Prior to council action, Assistant City Attorney Clark Askins read the caption of AN ORDINANCE ADOPTING AN UPDATE TO THE FUTURE LAND USE MAP COMPONENT OF THE COMPREHENSIVE PLAN OF THE CITY OF LA PORTE, TEXAS UPON RECOMMENDATION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF LA PORTE, TEXAS; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. (b) Public hearing to receive comments regarding the recommendation by the Planning and Zoning Commission to approve Special Conditional Use Permit # 15-91000007, to allow construction of an entertainment, commercial and residential mixed use development on a 20-acre tract located on the east side of State Highway 146, a quarter of a mile north of Wharton Weems Blvd., in a PUD zone; consider approval or other action regarding an Ordinance approving Special Conditional Use Permit Request # 15-91000007, to allow construction of an entertainment, commercial and residential mixed use development on a 20-acre tract located on the east side of State Highway 146, a quarter of a mile north of Wharton Weems Blvd., in a PUD zone – E. Ensey The public hearing opened at 7:13 p.m. There being no additional public comments, the public hearing closed at 7:13 p.m. Councilmember Earp moved to approve an Ordinance and Special Conditional Use Permit Request #15-91000007, to allow construction of an entertainment, commercial and residential mixed use development on a 20-acre tract located on the east side of State Highway 146, a quarter of a mile north of Wharton Weems Blvd., in a PUD zone. Councilmember Engelken seconded. Councilmember Martin made an amendment to the main motion to limit the number of extensions of the Special Conditional Use Permit after issuance to only one extension and for additional extension of time granted after application to come back before City Council instead of the Planning and Zoning Commission. Assistant City Attorney advised the extension will have to go before the Planning and Zoning Commission. Councilmember Martin amended his amendment to allow the applicant one extension for one year and an additional extension of time granted after application to come back before the Planning and Zoning Commission. City Engineer Eric Ensey spoke and advised there is not a limit to the length of time of the extension, and it will have to be approved by the Planning and Zoning Commission. When Mayor Rigby asked if there is a second to the amendatory motion, there was no second forthcoming. Councilmember Martin’s amendatory motion died for a lack of a second. MAIN MOTION PASSED UNANIMOUSLY 8/0. Councilmember Leonard was absent. Ordinance 2016-3619: Assistant City Attorney Clark Askins read the caption of AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, CHAPTER 106, MORE COMMONLY REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTE, BY GRANTING SPECIAL CONDITIONAL USE PERMIT NO. 15-91000007 FOR THAT CERTAIN PARCEL OF LAND HEREIN DESCRIBED FOR THE PURPOSE OF CONSTRUCTING AN ENTERTAINMENT, COMMERICAL AND MIXED USE DEVELOPMENT CENTER ON STATE HIGHWAY 146 NORTH OF WHARTON WEENS BOULEVARD, IN A PLANNED UNIT DEVELOPMENT (PUD) DISTRICT; MAKING CERTAIN FINDINGS OF FACT RELATED TO THE SUBJECT; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. 45 Page of January 11, 2016, Council Meeting Minutes 7. REPORTS (a) Receive report of the La Porte Development Corporation Board – Councilmember Engelken. Councilmember Engelken provided a report of the La Porte Development Corporation Board meeting held prior to the City Council Meeting. (b) Receive report on the Carriage House Project – Councilmembers Zemanek, K. Martin and Kaminski Councilmember Zemanek reported the item has still not be brought to City Council even after funds have been allocated. However, he has spoken to City Staff and the Heritage Society and some wishes may have changed on both sides. A meeting has been scheduled, and this item will come to City Council in the future. 8. ADMINISTRATIVE REPORTS City Manager Corby Alexander reminded Council of the Martin Luther King Day Celebration on January 17, 2016, at 3:00 p.m. at the Jennie Riley Center hosted by the La Porte Civic Club. Mr. Alexander also reported the focus of the celebration will be on the legacy of the late Councilmember Tommy Moser. 9. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information. Councilmember Engelken congratulated the La Porte Town Center; thanked everyone that spoke on behalf of the project that shows unified support within the community and wished everyone a Happy New Year; Councilmembers Earp and Clausen thanked the citizens for their input on the La Porte Town Center Project; thanked everyone who came out and showed support for the project; Councilmember J. Martin thanked Mr. Sanders for coming out and attending the meeting and commented he wishes Mr. Sanders’ museum will be the centerpiece of the development; he also thanked the citizens for coming out and commented it is up to City Council and City Staff to assure the project is a quality development; Councilmember K. Martin thanked the citizens for their input on the La Porte Town Center Project and commented she cannot wait to take her boys to the center; Councilmember Kaminski thanked the developers and Mr. Sanders and the citizens for their input; Councilmember Zemanek welcomed the La Porte Town Center; thanked everyone for coming out and commented it is a pleasure to serve the community; and Mayor Rigby commented he is looking forward to the La Porte Town Center and thanked everyone for their input. 10. ADJOURN - There being no further business, Councilmember Engelken made a motion to adjourn MOTION PASSED UNANIMOUSLY the meeting at 7:25 p.m. Councilmember Zemanek seconded. 8/0. Councilmember Leonard was absent. _______________________________ Patrice Fogarty, City Secretary Passed and approved on January 25, 2016. ________________________________ Mayor Louis R. Rigby 55 Page of January 11, 2016, Council Meeting Minutes REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: General FundsGeneral Funds Tim TietjensTim TietjensSource of Funds:Source of Funds: Requested By:Requested By: 001.9091.519.5007001.9091.519.5007 Planning & DevelopmentPlanning & DevelopmentAccount Number:Account Number: Department:Department: $65,000.00$65,000.00 Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Amount Other: $65,000.00$65,000.00 Requested:Requested: AttachmentsAttachments : : Budgeted Item:Budgeted Item:YESYESNONO 1. Proposal for GIS Technical Services Proposal for GIS Technical Services SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The City has utilized the services of HDR Engineering, Inc. for technical support in many of its GISThe City has utilized the services of HDR Engineering, Inc. for technical support in many of its GIS- related projects. related projects.  Planning & Development Staff has identified six (6) priorities for which the technical assistance of HDR Planning & Development Staff has identified six (6) priorities for which the technical assistance of HDR will be required in the current budget year: will be required in the current budget year:  1.Address Management ProjectAddress Management Project 2.Subdivisions and Easements Feature Class CompletionSubdivisions and Easements Feature Class Completion 3.ArcGIS for Server Software License InstallationArcGIS for Server Software License Installation 4.Fire Department Grid Book DevelopmentFire Department Grid Book Development 5.5.Silverlight to Javascript Template DevelopmentSilverlight to Javascript Template DevelopmentSilverlight to Javascript Template DevelopmentSilverlight to Javascript Template Development 6.Technical Support & Training Technical Support & Training  A detailed description of each of these current priorities is further described in the attached proposal.A detailed description of each of these current priorities is further described in the attached proposal. Action Required of Council:Action Required of Council: Consider approval or other action of a professional services agreement with HDR Engineering, Inc. for Consider approval or other action of a professional services agreement with HDR Engineering, Inc. for on-going GIS technical services.going GIS technical services. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate REQUEST FOR LA PORTE CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: 25 January 2016 ED General Funds Source of Funds: Requested By: Scott D. Livingston CIP #015-9892-993-1100 Department: Administration/Economic Development Account Number: Report: Resolution: Ordinance: $275,972.37 Amount Budgeted: $42,057.86 Amount Requested: Exhibit: Project Presentation, 11 Jan. 2016 Budgeted Item: YES NO Exhibit: Bidder Sheet Summary Exhibit: Evaluation Summary Exhibit: Enhancement Grant Application Exhibit: La Porte Enhancement Grant Guidelines, Revised 11-11-15 Exhibit: Development Agreement for the Sylvan Beach Apartments, Signed SUMMARY & RECOMMENDATION On 11 November 2015, the Board of the La Porte Development Corporation (LPDC) approved a new incentive policy, which increased the size of the LPDC’s maximum contribution for any one enhancement grant project from $25,000 to $50,000. $42,057.86 On 11 January 2016 the ED Board approved an enhancement grant in the amount of nd Brotamonte Asset 1, LLC to, which owns the Sylvan Beach Apartments at 315 N. 2 Street in La Porte, TX. Edwin Brotamonte, collected three bids from contractors to complete each of the following projects: (1) Paint & Wood Repair, (2) Asphalt Repair, (3) Landscaping, and (4) Signage. The $84,115.72$42,057.86 sum total of these three, lowest bids is , and 50% of this sum is . Please note the “Bid Sheet Summary” for details. The lowest bids for each of the project were offered as follows: Paint & Wood Repair -- $35,785.00 Parking Lot Repair -- $35,000.00 Landscaping -- $10,000.00 Signage -- $3,330.72 Mr. Brotamonte has committed to continue installation of improvements to the kitchens, bedrooms, bathrooms, and common areas of the interior of the apartment units. The cost of interior improvements is not included as an eligible reimbursable expense for the project. 1 Action Required by the La Porte City Council: Consider approval or other action authorizing expenditure by the La Porte Development Corporation for an enhancement grant in an amount not to exceed $42,057.86, payable to Brotamonte Asset 1, LLC., for infrastructure improvements to apartment building complex located at 315 N. 2nd Street. Approved for the La Porte City Council Agenda Corby D. Alexander, City Manager Date 2 11/19/2015 4.754.754.254.754.75 4.65 , based on reciepts and Following is a summary of the evaluations of the La Porte Enhancement Grant Evaluating Commmittee (EGEC). If you have any questions Average Score # of Evaluators Initial Review Date:Total Average Score (out of 25) 44444 . (281) 470-5016 $42,057.86 Total Score 1919171919 Grant to be awarded in an amount not to exceed about the items listed below, please call the Economic Development Office at 315 N. 2nd Street; La Porte, Texas 77571 completion of work as indicated. Sylvan Beach Apartments Edwin Brotamonte (713) 253-1736 Project Demonstrates a significant improvement over the existing situation. Project will enhance Main Street's appeal to new businesses and visitors. 11/19/2015 Economic Development Coordinator Resident, Employee of La Car Porte Project will add to the beautification of the City of La Porte. Owner, Bay Port Animal Clinic Criteria Project will complement the surrounding buildings. Director of Planning Project adds value to the City of La Porte. Recommendation: Business Address: Application Date: Business Name: Contact Name: Phone:Evaluating Committee Members: Title Scott D. Livingston Monica Rogers Cris Santiago Tim Tietjens Name 604 W. Fairmont Parkway La Porte, Texas 77571 281/470-5016 SYLVAN BEACH APARTMENTS 315N.2NDSTREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Planned Improvements Paint all wood components and metal rails of exterior structure I. Repair or replace all water damaged wood II. Power wash all brick exterior walls III. Landscaping IV. Asphalt parking lot repairs V. New Signage VI. Page 1 of20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Paint all wood components and metal rails of exterior structure I. Wood panels b/w Ðrst and second Ñoor A. Eaves B. Facia C. SofÐt D. Vertical Siding E. Doors F. Door Trim G. All steel rails H. Page 2 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Repair or replace all water damaged wood II. Wood panels b/w Ðrst and second Ñoor A. Eaves B. Facia C. SofÐt D. Vertical Siding E. Doors F. Door Trim G. Page 3 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application III. Power wash all brick exterior walls Page 4 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Landscaping III. Create 2 landscape islands around 2 new property signs A. Crepe Myrtles in key areas between units in front of brick walls B. Evergreen hedges along property wall below Ðrst Ñoor windows C. Page 5 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Asphalt parking lot repairs IV. Repair asphalt A. Reseal repaired asphalt B. Page 6 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application New Signage V. Property sign at 2nd and Adams A. Property sign at 3rd and Adams B. Lease ofÐce signage on 2nd and 3rd street C. Building IdentiÐcation signage D. Remove old signage E. Page 7 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 8 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 9 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 10 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 11 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 12 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 13 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 14 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 15 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 16 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Signs By Tomorrow $575.662$1,151.32+ Tax MDO Panels $45.004$180.00 + Tax Posts $25.004$100.00+ Tax Post Caps $89.9512$1,079.40 + Tax Building Signs $225.001$225.00 Remove sign $595.001$595.00 Install signs $3,330.72 Page 17 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 19 of 20 SYLVAN BEACH APARTMENTS 315 N. 2ND STREET LA PORTE, TX 77571 La Porte Enhancement Grant Program Application Page 20 of 20 LA PORTE ENHANCEMENT GRANT PROGRAM The La Porte Enhancement Grant Program, which is sponsored by the La Porte Development Corporation, offers matching grants to businesses which are located in the City of La Porte. Eligible improvements of the La Porte Enhancement Grant Program include façade enhance- ment/rehabilitation, beautification projects, new awnings, canopies, porches, signage, and parking lot improvements. Each program application will be evaluated on a case-by-case basis, and ALL projects for a matching grant greater than $25,000 must also be approved by the La Porte City Council. Interested business owners are welcome to complete the enclosed application form. Please deliver applications to: Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 LivingstonS@laportetx.gov Please contact Scott D. Livingston at LivingstonS@laportetx.gov or 281/470-5016, if you have any questions about the La Porte Enhancement Grant Program. Sincerely, Scott D. Livingston Economic Development Coordinator City of La Porte LPORTE BY THE BAY A 604 W. Fairmont Parkway La Porte, Texas 77571 281/470-5016 LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 1, Revised 11/11/15 BUSINESS. BY THE BAY. ELIGIBLE PROJECTS Business owners may be eligible for a reimbursement grant of funds which are used to enhance and/or beautify their businesses. The following types of projects are eligible for reimbursement: Façade Rehabilitation/Enhancement Eligible projects include work on existing structures, such as removing non- historic/added facades, re-pointing brick or replacing mortar joints, replacing or restoring cornices, removing paint from brick, replacing windows, restoring transom windows, repairing facades, etc. New Awnings, Canopies, Porches, and Signage Eligible projects include replacing, adding, or repairing awnings, canopies, porches, and signs. Signs may include signboards, projecting signs, pedestrian signage, window signs, hanging signs, and awning/canopy signs. Beautification Projects Eligible projects include public art, landscaping, and other beautification projects as approved by the Enhancement Grant Evaluation Committee (EGEC). Parking Lot Improvements Eligible projects include new parking lot construction, parking lot paving, parking lot re- surfacing, parking space striping/painting, new parking blocks, old parking block removal, and other projects as approved by the EGEC. PROGRAM GUIDELINES Grant funds are available only for exterior work on commercial property and building 1. facades that are visible from public streets. In general, grants offered to businesses are intended to support projects to renovate or 2. convert existing structures to their original historic condition. Grants will be processed and considered for award on a first-come, first-served basis 3. until funds are depleted or until the program ends, whichever comes first. Grants will not be awarded for work that has already been started or completed, or for 4. work that is covered by insurance. If desired work is above and beyond what insurance will pay, and is, therefore, considered an upgrade and enhancement in the opinion of the EGEC, it may be eligible for grant funds. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 2, Revised 11/11/15 BUSINESS. BY THE BAY. Grants will not be awarded to any Applicant that owes any delinquent indebtedness* 5. to the City of La Porte or the La Porte Development Corporation (LPDC). Ϋ ǒĻƓƷ LƓķĻĬƷĻķƓĻƭƭ ƭŷğƌƌ ƒĻğƓ ğƓǤ źƓķĻĬƷĻķƓĻƭƭ ķǒĻ ğƓķ ƚǞźƓŭ Ʒƚ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻ ƚƩ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ źƓĭƌǒķźƓŭ ĬǒƷ ƓƚƷ ƌźƒźƷĻķ ƷƚͲ ğķ ǝğƌƚƩĻƒ ƷğǣĻƭ ƚƓ ƩĻğƌ ğƓķ ƦĻƩƭƚƓğƌ ƦƩƚƦĻƩƷǤͲ Ǟŷźĭŷ ƦƩƚƦĻƩƷǤ źƭ źƓ ŅğĭƷ ƚǞƓĻķ ĬǤ ğƓķ źƭ ƌĻŭğƌƌǤ ƭǒĬƆĻĭƷ Ʒƚ ƷğǣğƷźƚƓͲ ǞŷĻƷŷĻƩ ƚƩ ƓƚƷ ƷŷĻ ƭğƒĻ ƒğǤ ŷğǝĻ ĬĻĻƓ ƦƩƚƦĻƩƌǤ ƩĻƓķĻƩĻķ Ʒƚ ƷŷĻ Ʒğǣ ğƭƭĻƭƭƚƩΏĭƚƌƌĻĭƷƚƩ ĬǤ ğƓǤ ƦĻƩƭƚƓ͵ {ǒĭŷ ƷĻƩƒ ƭŷğƌƌ ğƌƭƚ źƓĭƌǒķĻͲ ĬǒƷ ƓƚƷ ĬĻ ƌźƒźƷĻķ ƷƚͲ ĭŷğƩŭĻƭ ŅƚƩ ƦĻƓğƌƷźĻƭͲ źƓƷĻƩĻƭƷ ğƓķ ĭƚƭƷƭ ƚƓ ğƓǤ ƭǒĭŷ ğķ ǝğƌƚƩĻƒ ƷğǣĻƭͳ ĭŷğƩŭĻƭ ŅƚƩ ǞğƷĻƩͲ ƭĻǞĻƩͲ ŭğƩĬğŭĻ ğƓķ ƚƷŷĻƩ ƭĻƩǝźĭĻƭ ƩĻƓķĻƩĻķ ƚƩ ŭƚƚķƭ ŅǒƩƓźƭŷĻķ ĬǤ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻ ƚƩ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ğƓǤ ƦĻƩƭƚƓͳ ğƓķ ğƓǤ ƚƷŷĻƩ ƒğƓƓĻƩ ƚŅ źƓķĻĬƷĻķƓĻƭƭ Ʒƚ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻ ƚƩ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ ƓƚǞ ĻǣźƭƷźƓŭ ƚƩ Ǟŷźĭŷ ƒğǤ ŷĻƩĻğŅƷĻƩ ĬĻ ĭƩĻğƷĻķ ĬǤ ğƓǤ ƦĻƩƭƚƓ͵ bƚ ƭǒĭŷ źƓķĻĬƷĻķƓĻƭƭ ƭŷğƌƌ ĬĻ ĭƚƓƭźķĻƩĻķ ǒ ǒƓƷźƌ ƷŷĻ ƷźƒĻ ŅƚƩ źƷƭ ĭǒƩƩĻƓƷ ƦğǤƒĻƓƷ ǒƓķĻƩ ƷŷĻ ǝğƩźƚǒƭ ƚƩķźƓğƓĭĻƭ ƚŅ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻͲ ƚƩ ƭƷğƷĻ ƭƷğƷǒƷĻƭͲ ƚƩ ĭƚƓƷƩğĭƷǒğƌ ğŭƩĻĻƒĻƓƷͲ ƭŷğƌƌ ŷğǝĻ ĻǣƦźƩĻķͲ ǞźƷŷƚǒƷ ƦğǤƒĻƓƷ ŷğǝźƓŭ ĬĻĻƓ ƒğķĻ͵ Each grant will be awarded on a reimbursement basis once completed work has been 6. verified by the EGEC to be compliant with the plans proposed in the approved application. Any deviation from the approved project may result in the total or partial withdrawal of the grant. Each enhancement grant application will be subject to review by the EGEC, and 7. approval from the Board of the LPDC. The review criteria include the following: The project demonstrates a significant improvement over the existing situation, The project will add to the beautification of the City of La Porte , The project will enhance appeal to new businesses and visitors, The project will complement the surrounding buildings, and The project will add value to the City of La Porte. Grant applications and awards may be made in any of the reimbursable activities 8. described above and may be combined for any single property or project. An applicant is defined as an owner, tenant, or combination thereof, who occupies 9. space in an eligible property. A single owner of multiple properties may apply for grant funds for each property owned, but the matching grant must be for more than $2,500 and less than $50,000 per property in a three (3) year period. Preference will be given to all local bids for work that qualify under the current form of 10. the by the Board. Multiple bids are not required for each eligible project that is less than a total $2,000, of 11. which 50% or $1,000 would be a reimbursable expenses Purchasing Policy. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 3, Revised 11/11/15 BUSINESS. BY THE BAY. APPLICATION PROCESS Determine eligibility: Discuss project plans with the Economic Development 1. Coordinator, and the Coordinator will set up a pre-development meeting with the EGEC. Complete the application and sign the agreement form. Each grant application must 2. include the following: A scaled drawing by the project architect or design professional of all the work a. to be completed. Samples -- i.e. paint samples, fabric swatches, sign material, etc. -- that will b. enable the EGEC to envision the finished project. Three (3) itemized work estimates on all project work from contractors or c. project architects. Self-contracted work will be reimbursed for actual legitimate expenses, excluding labor. Photographs of the buildings exterior. The Applicant shall be required to d. provide before and after photographs of the building before the reimbursement grant can be awarded. For the initial application, before photographs will suffice, but afte photographs of the completed project must be submitted before the grant may be considered for reimbursement. Return the completed application form, with all applicable items, to: 3. Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 LivingstonS@laportetx.gov The application will undergo an approval process, which includes but is not limited 4. to the following: Each project must meet current building standards and codes, as well as a. building permit requirements. The EGEC will only consider applications that have been properly and fully b. completed, and which contain all information requested in the application and/or by the committee. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 4, Revised 11/11/15 BUSINESS. BY THE BAY. All itemized work estimates submitted by the Applicant must be dated no c. earlier than ninety (90) days prior to the Application request. Bids shall be submitted on the contracs or project architecs letterhead and shall contain the contracs name, address, and telephone number and shall itemize the bid in a manner that allows the EGEC to determine the bid components and authenticity of the bid. Applications receiving approval by the EGEC shall commence construction d. described in the application within ninety (90) days from the date that the enhancement grant is approved. Each Applicant must complete the construction described in the Application within one (1) year from the date that the grant is approved. If the Applicant cannot meet this timeline, then the Applicant may submit a written request for an extension of the commencement date or completion date provided the extension request is made prior to the ninety (90) day or one (1) year time limit. The EGEC shall not be obligated to grant an extension, but it may do so for good cause determined solely by the members of the Committee. The extensions, if granted, shall be for the term and for the conditions determined exclusively by the EGEC. Denial of an extension request may not be appealed. As a condition of this grant Application, the Applicant consents, and shall e. allow, the EGEC to request city inspections to determine that the grant, if awarded, will not be used for construction on any building that is not in compliance with the City Municipal Codes and Ordinances that are applicable to the construction contemplated in the application. The EGEC and LPDC shall have sole discretion in awarding grants. They shall f. award grants considering the amount requested, grant funds available, the guidelines of the grant program, condition of the building in which the grant funds will be used, economic impact, other grant requests, the type and nature of the construction, and the proposed construction results considering the grant program. No Applicant has a proprietary right to receive grant funds. The EGEC shall g. consider any application within its discretionary authority to determine what grant amount would be in the best interest of the grant program. The Applicant shall be required to furnish bef photographs of the h. buildings exterior, and any other site locations that are included as part of the application request. The applicant shall also provide fte photographs once the construction has been completed, as a condition of final grant disbursement. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 5, Revised 11/11/15 BUSINESS. BY THE BAY. The EGEC has the final discretion with regard to funding and reserves the i. right to recommend modifications or reject any project or elements of any project. Reimbursement. When the entire enhancement grant project has been completed, the 5. Applicant shall present the Economic Development Office with the following: Copies of all paid invoices, including copies of cancelled checks and/or credit a. card receipts for a single payment reimbursement of the approved funding, and Photographs of all completed work. b. When the project has been reviewed and approved by the EGEC, and their 6. recommendations have been presented and approved by the LPDC, a reimbursement check will be issued. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 6, Revised 11/11/15 BUSINESS. BY THE BAY. La Porte Enhancement Grant Application tƌĻğƭĻ ƦƩźƓƷ ĭƌĻğƩƌǤ͵ tƌĻğƭĻ ƭǒĬƒźƷ ğ ĭƚƒƦƌĻƷĻķ ğƦƦƌźĭğƷźƚƓ Ʒƚʹ Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 APPLICANT INFORMATION: APPLICATION DATE: Applicant Name Business Name Physical Business Address Business Owner (if different from applicant) Mailing Address Contact Phone Email Address TYPE OF WORK (ĭŷĻĭƉ ğƌƌ ƷŷğƷ ğƦƦƌǤ): Façade Awnings/Signage Parking Lot Improvements Beautification DETAILS OF PLANNED IMPROVEMENTS (ğƷƷğĭŷ ğķķźƷźƚƓğƌ ƦğŭĻƭ źŅ ƓĻĭĻƭƭğƩǤ): LA PORTE ENHANCEMENT GRANT APPLICATION PAGE 1, Revised 11/11/15 BUSINESS. BY THE BAY. Please list the name of each Contractor and/or Project Architect and the Total Amount of each bid. Please, also, attach the original proposals and work estimates: CONTRACTOR/PROJECT ARCHITECT TOTAL 1. $ 2. $ 3. $ 4. $ 5. $ BUDGET DETAIL PROJECT EXPENDITURES FUNDS FUNDS APPLIED TOTAL Façade Rehab $ $ $ Awnings/Signage $ $ $ $ $ $ Beautification $ $ $ Parking Lot Improvements Other (list): $ $ $ TOTAL $ $ $ Total estimated cost of proposed project: $ Amount requested (up to 50% of total cost, $2,500 to $50,000): $ tƌĻğƭĻ ğƷƷğĭŷ ĭƚƌƚƩ ƭğƒƦƌĻƭͲ ƒƚķĻƌ ƓǒƒĬĻƩƭ ΛŅƚƩ ǞźƓķƚǞƭͲ ķƚƚƩƭͲ ĻƷĭ͵ΜͲ ƦŷƚƷƚƭͲ ƭĭğƌĻķ ķƩğǞźƓŭƭͲ ğƓķ ƚƷŷĻƩ źƌƌǒƭƷƩğƷźƚƓƭ ƚŅ ǞƚƩƉ Ʒƚ ĬĻ ĭƚƒƦƌĻƷĻķ͵ tƌĻğƭĻ źƓĭƌǒķĻ ğƭ ƒǒĭŷ ķĻƷğźƌ ğƭ ƦƚƭƭźĬƌĻ͵ —ƚǒƩ ƭźŭƓğƷǒƩĻ ƚƓ Ʒŷźƭ ğƦƦƌźĭğƷźƚƓ ĭĻƩƷźŅźĻƭ ƷŷğƷ Ǥƚǒ ǒƓķĻƩƭƷğƓķ ğƓķ ğŭƩĻĻ ǞźƷŷ ƷŷĻ ŅƚƌƌƚǞźƓŭ ƭƷğƷĻƒĻƓƷƭʹ I have met with the EGEC and I fully understand the Enhancement Grant procedures and details established. I intend to use these grant funds for the eligible renovation projects, as spelled out in the application. I have not received, nor will I receive insurance monies for this revitalization project, OR I have disclosed all pertinent insurance information. I understand that if I am awarded an Enhancement Grant, any deviation from the approved project may result in the partial or total withdrawal of the grant funds. APPLICANT SIGNATURE DATE LA PORTE ENHANCEMENT GRANT APPLICATION PAGE 2, Revised 11/11/15 REQUEST FOR LA PORTE CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: 25 January 2016 Source of Funds: La Porte Dev. Corp. Requested By: Scott D. Livingston Account Number: General Fund Department: Administration/Economic Development Amount Budgeted: N/A Report: Resolution: Ordinance: Amount Requested: $152,889.82 Exhibit: Project Introduction - Revised Budgeted Item: YES NO Exhibit: Project Presentation, 11 January 2016 Exhibit: New Incentive Guidelines, 11 Nov. 2015 Exhibit: Project Math Exhibit: Development Agreement for Fischer’s Hardware - Signed Exhibit: Public Hearing Notice, 3 Sept. 2015, BAO Exhibit: Tax Records SUMMARY AND RECOMMENDATION: On Monday, 11 January 2016, the LPDC Board voted to approve an incentive grant and a proposed development agreement with Fischer’s Hardware, Inc. for an amount not to exceed $152,889.82 25% of $611,559.28, which is . The owners of Fischer’s Hardware are planning to $611,559.28 invest to expand the hardware store on the northwest corner of W. Fairmont Parkway and S. Broadway. This amount does not include any capital to purchase new retail inventory. Fischer’s is proposing to complete the following projects: Remove the existing metal fascia on the entire perimeter of the building, Install a new framework and new stucco fascia panels, Remove the awning from the southwest side of the building, Install kneewall stone fascia, Install a black wrought iron fence, Add paint and signage to the new structures, Remove the block wall between the existing build and Little Jacks to increase square footage by 15,000 square feet, Add new, interior fixtures & lumber fixtures for expansion, Add new, interior signage and fixtures, Repaint the pole sign and add new graphic signage. Re-seal and re-stripe the parking lot, Re-pave the area which is currently covered on the south side of the building, and 1 Add new flower beds and landscaping, including a block flower bed at the bottom of the exterior sign pole and add stucco finish to match the building. The development agreement outlines the requirements that must be met in order for Fischer’s to receive each of the five incentive payments. The performance benchmarks are as follows: PaymentTimelinePayment Details Pro-Rata Eligible? Amount $62,889.82 Documents must Documentation of capital expenditures Yes- pro rata threshold is 1 be submitted by of at least $611,559 for the scope of $550,000 in capital February 28, work outlined above. expenditures. Incentive amount 2017 determined by percentage of $611,559 documented. 2$15,000 Documents must Addition of 4 full-time and 3 part-time No. be submitted by employees. If Fischer’s does not meet February 28, requirements for Payment 1, it is NOT 2017 eligible to receive Payment 2. 3$75,000 Three years from Increased sales tax revenue of at least Yes- pro rata threshold is 15% issuance of final 20% from the Base Year sales tax increase in sales tax revenues. COrevenues. Eligible for $25,000 Incentive amount determined max/year for three years by percentage of 20% increase documented. As a direct result of this expansion and the associated improvements, the project principals anticipate that the taxable retail sales may increase by as much as 15-20%. In addition, the project principals are planning to hire 7 to 10 new employees as a result of this expansion. Of these new employees, 4 to 5 will be “full time” and the remaining will be “part-time” employees. 3 to 4 of the “full time” employees will be categorized as “management”. Other benefits of this proposed project include: Redevelopment and beautification of a prime corner in town, Opportunity to encourage local business expansion, Locally owned business with deep roots in in La Porte, and Opportunity to encourage the ongoing viability of this business anchor at a prime location in La Porte. Action Required by the La Porte City Council: Consider approval or other action authorizing expenditure by the La Porte Development Corporation for an incentive grant in an amount not to exceed $152,889.82, payable to Fischer's Hardware, Inc., for infrastructure improvements to property located at 1010 S. Broadway Street. Approved for the La Porte City Council Agenda 2 Corby D. Alexander, City Manager Date 3 Revised by Staff 16 Dec. 2015 Proposed Project Criteria tƌĻğƭĻ ƦƩƚǝźķĻ ƷŷĻ ŅƚƌƌƚǞźƓŭ źƓŅƚƩƒğƷźƚƓ Ʒƚ Scott D. Livingston ğƷ \[źǝźƓŭƭƷƚƓ{θƌğƦƚƩƷĻƷǣ͵ŭƚǝ ğƷ ƌĻğƭƷ ƷŷƩĻĻ ΛЌΜ ǞĻĻƉƭ źƓ ğķǝğƓĭĻ ƚŅ ƷŷĻ ƦƌğƓƓĻķ ƒĻĻƷźƓŭ ķğƷĻ ǞźƷŷ ƷŷĻ .ƚğƩķ ƚŅ 5źƩĻĭƷƚƩƭ ƚŅ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓʹ Њ͵‘ŷƚ źƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻͪ ‘ŷğƷ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ķƚͪ Fischers Hardware is in the business of retail sales providing product and services to La Porte and surrounding areas. Ћ͵‘ŷğƷ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ķƚ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ tƌĻğƭĻ ĻǣƦƌğźƓ ƷŷĻ ƭĭƚƦĻ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭ͵ tƌĻğƭĻ ƭǒĬƒźƷ ğ ƭźƷĻ ƦƌğƓͲ ĻƌĻǝğƷźƚƓ ƩĻƓķĻƩźƓŭΛƭΜͲ ƦźĭƷǒƩĻƭͲ ğƓķΉƚƩ ğ ķĻƷğźƌĻķ ǝĻƩĬğƌ ķĻƭĭƩźƦƷźƚƓ ƚŅ ƷŷĻ ķĻƭźƩĻķ ƦƩƚƆĻĭƷ ǞźƷŷ Ʒŷźƭ ŅƚƩƒ͵ $611,559.28 to expand their existing business in La Porte, TX͵ The owners will use the funds to remodel both the interior and exterior of the building to provide an updated appearance by completing the following projects: Remove the existing metal fascia on the entire perimeter of the building, Install a new framework and new stucco fascia panels, Remove the awning from the southwest side of the building, Install kneewall stone fascia, Install a black wrought iron fence, Add paint and signage to the new structures, Remove the block wall between the existing build and Little Jacks to increase square footage by 15,000 square feet, Add new, interior fixtures & lumber fixtures for expansion, Add new, interior signage and fixtures, Repaint the pole sign and add new graphic signage. Re-seal and re-strip the parking lot, Re-pave the area which is currently covered on the south side of the building, and Add new flower beds and landscaping, including a block flower bed at the bottom of the exterior sign pole and add stucco finish to match the building. Ќ͵‘ŷĻƩĻ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ķƚ ĬǒƭźƓĻƭƭ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware will operate in its current location. Ѝ͵‘ŷĻƓ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ƭƷğƩƷ ğƓķ ŅźƓźƭŷ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ Fischers Hardware would like to start the project as soon as possible and have the project completed within six months. 3 Revised by Staff 16 Dec. 2015 Ў͵‘ŷǤ źƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ źƓƷĻƩĻƭƷĻķ źƓ ĭƚƓķǒĭƷźƓŭ ĬǒƭźƓĻƭƭ Ʒƚ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware has been serving the community for 35 years and would like to continue with a new look and new products to better serve customers. Џ͵IƚǞ Ǟƚǒƌķ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ƌźƉĻ Ʒƚ ƩĻĭĻźǝĻ ğƭƭźƭƷğƓĭĻ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ğƭƭźƭƷ CźƭĭŷĻƩƭ IğƩķǞğƩĻ źƓ ƒğƉźƓŭ ğ ŅźƩƒ ĭƚƒƒźƷƒĻƓƷ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware would like to receive assistance from the ED Board to complete the proposed project in a minimal amount of time. We would like to request funds to make the transition. А͵‘ŷğƷ ğƩĻ ƷŷĻ ĻƭƷźƒğƷĻķ ЋЉЊЌ ƷğǣğĬƌĻ ǝğƌǒĻƭ ƚŅ ƷŷĻ ĻǣźƭƷźƓŭ ƦƩƚƦĻƩƷǤΛźĻƭΜ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƌƚĭğƷźƚƓ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ The current, total taxable value of Fischers Hardware is 1.4 million. Б͵‘ŷğƷ źƭ ƷŷĻ ĻƭƷźƒğƷĻķ ƷğǣğĬƌĻ ǝğƌǒĻ Ʒƚ ĬĻ ğķķĻķ źƓ \[ğ tƚƩƷĻ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ĭƚƒƦƌĻƷźƓŭ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͪ ŷźƭ Ǟƚǒƌķ źƓĭƌǒķĻ ƷŷĻ ŅƚƌƌƚǞźƓŭʹ The owners are planning to invest $$611,559.28 to renovate and expand the existing building, purchase new taxable retail inventory, purchase new interior furniture, fixtures, and equipment, purchase new interior and exterior signage, re-pave and re-stripe the parking lot, and add additional landscaping. В͵IƚǞ ƒğƓǤ ĻǣźƭƷźƓŭ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻΜ Ǟźƌƌ ĬĻ ƩĻΏƌƚĭğƷĻķ Ʒƚ \[ğ tƚƩƷĻ ƚƩ ƩĻƷğźƓĻķ źƓ \[ğ tƚƩƷĻ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ All existing employees will remain as a result of the proposed project. ЊЉ͵IƚǞ ƒğƓǤ ƓĻǞ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻΜ Ǟźƌƌ ĬĻ ŷźƩĻķ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ Fischers Hardware plans to add 7 to 10 new employees as a result of the proposed project. Of these new - ЊЊ͵IƚǞ ƒğƓǤ Ʀğźķ ğƓķΉƚƩ źƓƷĻƩƓ ƦƚƭźƷźƚƓƭ ğƩĻ ƷŷĻ ĭƚƒƦğƓǤ ǞźƌƌźƓŭ Ʒƚ ƩĻƭĻƩǝĻ ŅƚƩ ƭƷǒķĻƓƷƭ ƚŅ \[ğ tƚƩƷĻ Iźŭŷ {ĭŷƚƚƌͪ Fischers Hardware has used Cooperative Education in the past with positive results and will continue to use this program. We estimate 3 to 5 positions will be available. ЊЋ͵DĻƓĻƩğƌƌǤ źķĻƓƷźŅǤ ƷŷĻ ĬĻƓĻŅźƷƭͲ źŅ ğƓǤͲ ƷŷğƷ ğƌƌ Ņǒƌƌ ƷźƒĻ ĻƒƦƌƚǤĻĻƭ Ǟźƌƌ ƩĻĭĻźǝĻ Λź͵Ļ͵ ЍЉЊƉͲ ķĻƓƷğƌͲ ƒĻķźĭğƌͲ ǝźƭźƚƓͲ ƭƷƚĭƉ ƚƦƷźƚƓƭͲ ƦƩƚŅźƷΏƭŷğƩźƓŭͲ ĻƷĭ͵Μ͵ Fischers Hardware offers optional medical, dental, vision, and Accidental Death and Dismemberment, as well as life insurance to all full time employees. 4 Revised by Staff 16 Dec. 2015 ЊЌ͵/ğƷĻŭƚƩźǩĻ ƷŷĻ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻͳ ĬƚƷŷ ƩĻƌƚĭğƷĻķ ğƓķ ƓĻǞ ŷźƩĻƭΜ ĬǤ ƆƚĬ ƷźƷƌĻΉƷǤƦĻ ƚŅ ǞƚƩƉ ğƓķ ǞğŭĻΉƭğƌğƩǤ ƌĻǝĻƌ͵ All of Fischers Hardware employees are categorized as sales with the exception of office clerical personnel. Sales positions include customer service, stocking, and cashier. ЊЍ͵ ǞźƷŷƚǒƷ ƷŷĻ ğƭƭźƭƷğƓĭĻ ƚŅ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ ǞŷǤ ƒźŭŷƷ ƓƚƷ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ĬĻ ğĬƌĻ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Without the assistance of the La Porte Development Corporation, Fischers Hardware is unable to complete the proposed project. ЊЎ͵‘ŷğƷ ŅƚƩƒΛƭΜ ğƓķ ğƒƚǒƓƷΛƭΜ ƚŅ źƓĭĻƓƷźǝĻƭ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ƩĻƨǒĻƭƷ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ĬĻ ğĬƌĻ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware would like to receive the full amount of incentive funds allowable to complete the proposed project. Fischers Hardware is requesting the sum of $250,000. decision and grant award will determine whether or not they will spend the full amount or reduce the scope of the proposed project. 5 La Porte, Texas 77571 1012 S. Broadway Rod Rothermel 0171 - (281) 470 Owner frkherrera@yahoo.com La Porte, Texas 77571 1012 S. Broadway Frank Herrera fischershardware@gmail.com La Porte, Texas 77571 Michael Breaux 0171 - (281) 470 Owner Incentive Guidelines for New and Expanding Businesses City of La Porte 11 November 2015 lesser 1.Incentives for new or expanding businesses should be limited to the of: (a)A maximum 10 year payback of the business’s new/additional tax revenues to the City of La Porte, or (b)Up to 25% of the business’s total expendituresfor “infrastructure”, “site improvements”, and “other related improvements”; 2.Businesses that create new “primary jobs” will receive additional value, which will be calculated as an “Adjusted Payback”; 3.“Primary Job Training” is an eligible expense toward a business’s 25% total expenditure; 4.The maximum contribution of the Board to projects in the La Porte Enhancement Grant Program is $50,000; and 5.Projects that donot meet these parameters will be considered on a case-by-case basis. Contextual Information for Economic Development Grant Awards All projects that apply for an economicdevelopment grant must meet the following criteria: (1)Only the minimum amount of financial assistancerequired to bring the project tofruition will be considered. (2)A strict, narrow focus will be maintained for using funds on “infrastructure”, “site improvements”, “related improvements”, and “primary job training”. (3)The incremental tax revenues, including both property and sales tax revenues, to be generated by each project, which may be verified in the quarterly and annual STARS Reports, will be included in the model. (4)The value of number of new jobs associated with each project will be assigned a value and included in the model as follows: 0.15 a.A value of per job will be assigned for higher paying, white collar, primary engineering, engineering design, or executive “jobs”. 0.125 b.A value of per job will be assigned to highly skilled positions for a process primary technician and/or advanced manufacturing “jobs”. 0.10primary c.A value of per job will be assigned to skilled “jobs”. 0.075primary d.A value of per job will be assigned to unskilled “jobs”, and 0non-primary e.A value of per job will be assigned to “jobs”. (5)Projects which have already made a commitment to establish a new business in La Porte will not be considered for an incentive grant. (6)Projects which have already started construction or other renovation work will not be considered for an incentive grant. (7)The ED Board and/or City Council will retain discretion to award any lesser or greater amount to any given project. Project Math New Incentive Guidelines for New and Expanding Businesses This mathematical analysis is based upon the , which the ED Board approved on 11 November, 2015. In short, the new guidelines applicable to this project state that: lesser 1.Incentives for new or expanding businesses should be limited to the of: (a) City of La Porte, or (b)ite 2. ; Known Facts: $600,000 Total capital expenditure, excluding inventory of approximately . 15-20% Sales tax revenues are expected to increase by , per the Project Introduction. nd Annual sales tax revenues for the last twelve months ending with the 2 Quarter of 2015, as provided by the STARS report. (Note: In accordance with State Law, this information is confidential.) Anticipated new employment of 4 full time managerial positions and 3 part time positions. (Note: For 0.1 the purpose of this analysis, the full time, primary job positions were given a value of , while the part 0 time, non-primary job positions were assigned a value of ). Analysis: new/additional tax revenues to the City of La Porte, since this amount is less than . Therefore, assuming that (a) 100% of the value of the $600,000 tax revenue by 20% each year, the 10 year payback is as: $120,000 = (($600,000/100) x (0.71) x (10 years)) + ((20% new sales tax revenue) x (10 years)) + a value for 4 full time, managerial/primary jobs 1 $200,000 For , the payback period is 17.15 years, and the adjusted payback period is 16.75 years. $150,000 For , the payback period is 12.86 years, and the adjusted payback period is 12.46 years. $120,00010.29 years9.89 years For , the payback period is , and the adjusted payback period is . 2 PAGE 6 THE BAY AREA OBSERVER THURSDAY, SEPTEMBER 3, 2015 LEGAL/PUBLIC NOTICES To Place Legal and Public Notices: Email editor@bayareaobserver.com or Call 281-907-3140 PUBLIC NOTICE 2015 Property Tax Rates in City of Morgan’s Point This notice concerns the 2015 property tax rates for City of Morgan’s Point. It presents information about three tax rates. Last year’s tax rate is the ac - - tual tax rate the taxing unit used to determine property taxes last year. This dard, and is in violation of the City of La Porte Code of Ordinances # 82-476. year’s effective tax rate would impose the same total taxes as last year if you On August 24, 2015 the City of La Porte City Council convened at a Public Hearing and compare properties taxed in both years. This year’s rollback tax rate is the issued Condemnation Ordinances for the below listed properties: highest tax rate the taxing unit can set before taxpayers start rollback pro - cedures. In each case these rates are found by dividing the total amount of 1. 204 N. Forrest Ave. TWO STRUCTURES ON SITE taxes by the tax base (the total value of taxable property) with adjustments as (Single Family Dwelling in an R-1, Low-Density Residential Zone) HCAD: #035-208-005-0018 required by state law. The rates are given per $100 of property value. Blk. 5; Lot 8; Sylvan Beach First Subdivision Legal Description: Legal Description: $ 31,942.00 Improvements: Last year’s tax rate: Taxes Owed: $ 0 $1,396,366 Last year’s operating taxes 2. 514 N. 5th St ONE STRUCTURE ON SITE Last year’s debt taxes $150,044 (Single Family Dwelling in an R-1, Low-Density Residential Zone) HCAD: #023-216-004-0009 $1,546,410 Last year’s total taxes Legal Description: Blk. 104; Lots 9 & 10; La Porte – Harris County Legal Description: Last year’s tax base $188,788,958 $ 39,495.00 Improvements: $ 0 Taxes Owed: $0.819121/$100 Last year’s total tax rate This year’s effective tax rate: 3. 626 N. 1st St. ONE STRUCTURE ON SITE (Single Family Dwelling in an R-1, Low-Density Residential Zone) Last year’s adjusted taxes HCAD: #024-037-027-0003 $1,546,335 (after subtracting taxes on lost property) Blk. 327; Lots 3-4; Town of La Porte- Harris County Legal Description: Legal Description: $ 17,803.00 Improvements: ÷ This year’s adjusted tax base Taxes Owed: $ 0 (after subtracting value of new property) $180,311,019 4. 330 S. 5th St. sONE STRUCTURE ON SITE (Single Family Dwelling in an R-1, Low-Density Residential Zone) =This year’s effective tax rate $0.857593/$100 HCAD: #023-162-018-0017 (Maximum rate unless unit publishes notices and holds hearings.) Legal Description: Blk. 18; Lots 17, 18, & 19; La Porte Legal Description:This year’s rollback tax rate: $ 13,614.00 Improvements: $ 0 Taxes Owed: Last year’s adjusted operating taxes $1,396,289 (after subtracting taxes on lost property and adjusting for any transferred function, tax City of La Porte, 604 W. Fairmont Parkway, La Porte, TX 77571 and/or enhanced indigent healthcare expenditures) CITY OF LA PORTE Patrice Fogarty, City Secretary $180,311,019 ÷ This year’s adjusted tax base In compliance with the Americans with Disabilities Act, the City of La Porte will provide =This year’s effective operating rate $0.774378/$100 for reasonable accommodation for persons attending public meetings. To better serve at - tendees, requests should be received 24 hours prior to the meetings. Please contact Patrice =this year’s maximum operating rate $0.836328/$100 x 1.08 Fogarty, City Secretary, at 281.470.5019. + This year’s debt rate $0.182076/$100 NOTICE OF PUBLIC HEARING = This year’s total rollback rate $1.018404/$100 Notice is hereby given that the City Council of the City of La Porte will hold a Public Hearing on the 14th day of September 2015, in the Council Chambers of the City Hall, 604 Statement of Increase/Decrease West Fairmont Parkway, La Porte, Texas, beginning at 6:00 P.M. The purpose of this hear If City of Morgan’s Point adopts a 2015 tax rate equal to the effective tax - ing is to provide citizens the opportunity to comment on the overall budget. rate of $0.857593 per $100 of value, taxes would increase compared to 2014 taxes by $6,582. This budget will raise more total property taxes than last year’s bud - get by $1,209,600.00, or 7.08%; and of that amount, $167,401.27 is tax Schedule A - Unencumbered Fund Balance revenue to be raised from new property added to the tax roll this year. The following estimated balances will be left in the unit’s property tax ac - corresponding debt obligation. 30, 2015. Copies of the adopted budget will be available for public inspection and copying Type of Property Tax Fund Balance and the La Porte Community Library, 600 South Broadway, La Porte, Texas, during normal General Fund 1,307,320 business hours. Copies will also be made available on the City’s website. Debit Service Fund 154,108 CITY OF LA PORTE Schedule B - 2015 Debt Service The unit plans to pay the following amounts for long-term debts that are Patrice Fogarty, TRMC, MMC secured by property taxes. These amounts will be paid from property tax City Secretary revenues (or additional sales tax revenues, if applicable). Interest Principal Other NOTICE OF PUBLIC HEARING Total Description of Debtto be Paid or Contract Amounts Payment LA PORTE DEVELOPMENT CORPORATION BOARD (TYPE B BOARD) from Payment to to be Paid Property be Paid from Notice is hereby given that the La Porte Development Corporation Board (Type B Board) Taxes of the City of La Porte, Texas will conduct a public hearing at on the 5:00 p.m.11th day Property Taxes in the Council Chambers at City Hall, 604 West Fairmont Parkway, of November, 2015, La Porte, Texas. The purpose of the public hearing is to receive public input on a proposed project by the La Porte Development Corporation in an amount not to exceed $400,000.00, Obligation to promote and develop a new and expanded business enterprise, through site improve - ments and other related improvements for infrastructure at the former Texas Parks & Wild - Obligation life building located at 102 E. Main Street and 105 San Jacinto Street, La Porte, TX 77571. Persons wishing to address the Board pro or con shall be required to sign in before the meet - Obligation ing is convened. CITY OF LA PORTE $329,717 Total required for 2015 debt service $0 - Amount (if any) paid from Schedule A Patrice Fogarty, TRMC City Secretary $0 - Amount (if any) paid from other resources $0 - Excess collections last year A quorum of City Council members may be present and participate in discussions during this meeting, $329,717 however, no action will be taken by Council.= Total to be paid from taxes in 2015 + Amount added in anticipation that the unit will This facility has disability accommodations available. Requests for accommodations or interpretive services at meetings should be made 48 hours prior to the meeting. Please contact the City Secretary’s $0 collect only 100.00% of its taxes in 2015 $329,717 = Total debt levy This notice contains a summary of actual effective and rollback tax rates’ NOTICE OF PUBLIC HEARING calculations. You can inspect a copy of the full calculations at 604 West LA PORTE DEVELOPMENT CORPORATION BOARD (TYPE B BOARD) Fairmont Parkway, La Porte, Texas 77571. Name of person preparing this notice: Katherine R Powell Notice is hereby given that the La Porte Development Corporation Board (Type B Board) Notice is hereby given that the La Porte Development Corporation Board (Type B Board) of the City of La Porte, Texas will conduct a public hearing at 5:00 p.m. on the 11th day Title: Revenue Manager of the City of La Porte, Texas will conduct a public hearing at 5:00 p.m.11th day of November, 2015, in the Council Chambers at City Hall, 604 West Fairmont Parkway, Date Prepared: 08/27/2015 of November, 2015, in the Council Chambers at City Hall, 604 West Fairmont Parkway, La Porte, Texas. The purpose of the public hearing is to receive public input on a proposed La Porte, Texas. The purpose of the public hearing is to receive public input on a proposed project by the La Porte Development Corporation in an amount not to exceed $250,000.00, project by the La Porte Development Corporation in an amount not to exceed $250,000.00, to promote and develop an expanded business enterprise, through site improvements and to promote and develop an expanded business enterprise, through site improvements and other related improvements for infrastructure at property located at 1010 S. Broadway other related improvements for infrastructure at property located at 1010 S. Broadway Street, La Porte, TX 77571. Persons wishing to address the Board pro or con shall be required to sign in before the meet - Persons wishing to address the Board pro or con shall be required to sign in before the meet ing is convened. CITY OF LA PORTE Patrice Fogarty, TRMC Patrice Fogarty, TRMC City Secretary Houston, TX 77024 A quorum of City Council members may be present and participate in discussions during this meeting, A quorum of City Council members may be present and participate in discussions during this meeting, however, no action will be taken by Council. 713-861-9453 This facility has disability accommodations available. Requests for accommodations or interpretive This facility has disability accommodations available. Requests for accommodations or interpretive wildlifecenteroftexas.org services at meetings should be made 48 hours prior to the meeting. Please contact the City Secretary’s services at meetings should be made 48 hours prior to the meeting. Please contact the City Secretary’s REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/AN/A Don PennellDon PennellSource of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Public WorksPublic Works Department:Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Map of Lomax Lift Station Consolidation Map of Lomax Lift Station Consolidation Area 2. City Lift Station System Flow Chart with City Lift Station System Flow Chart with Age 3. Preliminary Cost Estimate Preliminary Cost Estimate 4. Loan Application invitation TWDB Loan Application invitation TWDB 5. Resolution Resolution 6. Email from Financial Advisor Email from Financial Advisor SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The West Lomax Area Sanitary Sewer Extension Feasibility Study that was completed in April 2015 by The West Lomax Area Sanitary Sewer Extension Feasibility Study that was completed in April 2015 by consultant Cobb Fendley determined that eight (8) sanitary sewer lift stations in the area could be consultant Cobb Fendley determined that eight (8) sanitary sewer lift stations in the area could be eliminated by constructing one new lift station, replacing 10,600 feet of force main, replacing 52 eliminated by constructing one new lift station, replacing 10,600 feet of force main, replacing 52 manholes, and replacing 20,720 feet of sanitary sewer.  manholes, and replacing 20,720 feet of sanitary sewer.   In November 2015 the City received approval from the TWDB (Texas Water Development Board) to In November 2015 the City received approval from the TWDB (Texas Water Development Board) to apply for a loan to Design and Construct the sanitary sewer extension project that is renamed the apply for a loan to Design and Construct the sanitary sewer extension project that is renamed the apply for a loan to Design and Construct the sanitary sewer extension project that is renamed the apply for a loan to Design and Construct the sanitary sewer extension project that is renamed the Lomax Area Wastewater Lift Station Consolidation or Lomax Area WWLS Consolidation.  The Lomax Area Wastewater Lift Station Consolidation or Lomax Area WWLS Consolidation.  The application will be submitted to TWDBapplication will be submitted to TWDB’’s Clean Water State Revolving Funding, which provides a s Clean Water State Revolving Funding, which provides a discounted interest rate for qualifying communities for qualifying project.  The Lomax Area WWLS discounted interest rate for qualifying communities for qualifying project.  The Lomax Area WWLS project has received an initial review by TWDB and is a qualifying project.  The Cityproject has received an initial review by TWDB and is a qualifying project.  The City’’s financial advisor s financial advisor has reviewed the potential financing options and believes that TWDBhas reviewed the potential financing options and believes that TWDB’’s interest subsidy would mean a s interest subsidy would mean a net present value saving of $1.1 million.  Additionally, staff and TWDB representatives believe that this net present value saving of $1.1 million.  Additionally, staff and TWDB representatives believe that this project would be eligible for up to $1.5 million in loan forgiveness.  The exact amount of loan forgiveness project would be eligible for up to $1.5 million in loan forgiveness.  The exact amount of loan forgiveness will be determine once the application in finalized and submitted. will be determine once the application in finalized and submitted.  Through the revolving loan fund program, the State of Texas and Texas Water Development Board are Through the revolving loan fund program, the State of Texas and Texas Water Development Board are providing an excellent, and much needed, opportunity for the City of La Porte to pursue significant providing an excellent, and much needed, opportunity for the City of La Porte to pursue significant improvements to the Cityimprovements to the City’’s wastewater collection system.  The requested funding will allow the City of s wastewater collection system.  The requested funding will allow the City of La Porte to accomplish the following:La Porte to accomplish the following: Reduce the number of sanitary lift stations by eight (8).  Remove nine (9) lift stations and install Reduce the number of sanitary lift stations by eight (8).  Remove nine (9) lift stations and install one (1) regional lift station. The lift stations to be eliminated were all constructed in the 1960one (1) regional lift station. The lift stations to be eliminated were all constructed in the 1960’’s. Improve system efficiency.  Currently wastewater collected in the project area is pumped in Improve system efficiency.  Currently wastewater collected in the project area is pumped in series up to five times.  Upon project completion, all wastewater will be lifted a single time.series up to five times.  Upon project completion, all wastewater will be lifted a single time. Allow the City to move forward with improvements identified in the SSO project agreement with Allow the City to move forward with improvements identified in the SSO project agreement with TCEQ.  In fact, the improvements proposed with this request are more ambitious and provide TCEQ.  In fact, the improvements proposed with this request are more ambitious and provide greater benefit in terms of reducing the potential for SSOs than those improvements that were greater benefit in terms of reducing the potential for SSOs than those improvements that were identified in the TCEQ/city agreement. identified in the TCEQ/city agreement.  A requirement of the TWDB application for Clean Water State Revolving Fund loan application is for the A requirement of the TWDB application for Clean Water State Revolving Fund loan application is for the City Council to pass a resolution to authorize application for the loan in the amount of up to $10,635,000.City Council to pass a resolution to authorize application for the loan in the amount of up to $10,635,000. Action Required of Council:Action Required of Council: Consider approval or other action authorizing a resolution to apply for a Clean Water State Revolving Consider approval or other action authorizing a resolution to apply for a Clean Water State Revolving Fund loan application through the Texas Water Development Board in the amount of $10,635,000.Fund loan application through the Texas Water Development Board in the amount of $10,635,000. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate Project Information Form Submital - Clean Water Revolving Fund Program City of La Porte, Texas Lomax Area Wastewater Lift Station Consolidation January, 2016 Unit Item QuantityUnitPriceTotal Phase 1 Construction Costs (Cobb Fendley Report) $ 2,619,000 Add 11,000 Lin. Ft. 16" Force Main11000LF$ 135.00 $ 1,485,000 Add Lift Station 23 incl. Force Main Replacement1Lump$ 500,000.00$ 500,000 Add Sanitary Service Lateral Rehabilitation 70Each$ 4,000.00$ 280,000 Subtotal Phase 1 Construction Costs$ 4,884,000 Phase 2 Construction Costs (Cobb Fendley Report)$ 2,317,540 Add Sanitary Service Lateral Rehabilitation 50Each$ 4,000.00$ 200,000 Subtotal Phase 2 Construction Costs$ 2,517,540 SUBTOTAL PHASE 1 + PHASE 2 CONSTRUCTION$7,401,540 Add 25% Contingency$1,850,385 TOTAL CONSTRUCTION COST PLUS 25%$9,251,925 Planning, Environmental, Acquisition, Design, Construction 13%$ 1,383,000 TOTAL PROJECT COST ESTIMATE$ 10,634,925 P.O. Box 13231, 1700 N. Congress Ave. Austin, TX 78711-3231, www.twdb.texas.gov Phone (512) 463-7847, Fax (512) 475-2053 November 20, 2015 Mr. David Mick Public Works Director La Porte 604 West Fairmont Parkway La Porte, TX 77571-6215 Re: State Fiscal Year 2016 Clean Water State Revolving Fund (CWSRF) Application Invitation Dear Mr. Mick: We are pleased to provide you this official notice that the City of La Porte is hereby invited to submit an application for funding to the Texas Water Development Board (TWDB) through the Clean Water State Revolving Fund. The proposed project is listed in the Intended Use Plan (IUP) as being eligible to receive funding as shown below: Project Description Lomax Area WWLS Consolidation Eligible Phases P A D & Construction; Non-Equivalency Project Information Form Number 11115 Eligible Project Costs $10,635,000 Your proposed project has also been identified as eligible to receive principal forgiveness reserved for Green Projects. The actual principal forgiveness amount will be reviewed and a determination made, once your completed application is received and reviewed, based on the IUP and funding availability. Applications will be processed in a first-come, first-served manner based on the time the application is determined to be administratively complete. Application submittal guidance and the related application materials may be found on our website at www.twdb.texas.gov/financial/applications/. A pre-application conference is a requirement of the Clean Water State Revolving Fund program. If you have not already scheduled yours, please contact Tammie Brown by phone at (512) 475-0580 or by e-mail at tammie.brown@twdb.texas.gov. They will be able to assist you with scheduling a meeting prior to your submission of the application. . . Our Mission Board Members . . . . To provide leadership, information, education, and Bech Bruun, Chairman Kathleen Jackson, Member . . support for planning, financial assistance, and . . outreach for the conservation and responsible . . development of water for Texas Kevin Patteson, Executive Administrator . Mr. David Mick November 20, 2015 Page 2 We look forward to working with the City of La Porte on its project. Please contact Mark Evans, Program Coordinator, by phone at (512) 463-8510 or by email at mark.evans@twdb.texas.gov, should you have any concerns or questions. Sincerely, Jo Dawn Bomar, Director Program Administration and Reporting Water Supply and Infrastructure REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/AN/A Don PennellDon PennellSource of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Public WorksPublic Works Department:Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Resolution Resolution SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS This is an accompanying item to the previous agenda request for considering financial assistance from This is an accompanying item to the previous agenda request for considering financial assistance from the Texas Water Development Board (TWDB) for the Lomax Area Wastewater Lift Station the Texas Water Development Board (TWDB) for the Lomax Area Wastewater Lift Station Consolidation Project.  The TWDB requires applicants to affirm by City Council resolution that the Consolidation Project.  The TWDB requires applicants to affirm by City Council resolution that the applicant (the City) has the authority to collect and treat wastewater within the City of La Porte service applicant (the City) has the authority to collect and treat wastewater within the City of La Porte service area, set and collect utility rates, accept and utilize grant funding. area, set and collect utility rates, accept and utilize grant funding.  Action Required of Council:Action Required of Council: Consider approval or other action of a Resolution designating the City of La Porte as the management Consider approval or other action of a Resolution designating the City of La Porte as the management agency for wastewater collection and treatment within the City of La Porte corporate limits and where agency for wastewater collection and treatment within the City of La Porte corporate limits and where authorized by the La Porte City Council within the City of La Porteauthorized by the La Porte City Council within the City of La Porte’’s extraterritorial jurisdiction areas. s extraterritorial jurisdiction areas.  Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Capital OutlayCapital Outlay Michael DolbyMichael DolbySource of Funds:Source of Funds: Requested By:Requested By: 0039890655110000398906551100 FinanceFinanceAccount Number:Account Number: Department:Department: $180,000.00$180,000.00 Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Soule Source Documentation Soule Source Documentation SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS In 2005, the City entered into an Interlocal Participation Agreement with the City of Pearland to piggy In 2005, the City entered into an Interlocal Participation Agreement with the City of Pearland to piggy back off the contract for an Automated Meter Reader (AMR) wireless system with HD Supply.  back off the contract for an Automated Meter Reader (AMR) wireless system with HD Supply.  Part of Part of that contract was to change out all meters to a Neptune meter and electronic register. The life cycle of a that contract was to change out all meters to a Neptune meter and electronic register. The life cycle of a meter is about ten years.meter is about ten years.    Meters throughout the city are failing resulting in more staff time to manually Meters throughout the city are failing resulting in more staff time to manually read the meters. read the meters.    As part of the FY 2015As part of the FY 2015--2016 Capital Improvement Project, funds were budgeted for the water meter 2016 Capital Improvement Project, funds were budgeted for the water meter replacement project for the replacement of the failing meters for the AMR wireless system.  replacement project for the replacement of the failing meters for the AMR wireless system.  Neptune Neptune meters were used as part of the AMR system and components of other manufacturers are not meters were used as part of the AMR system and components of other manufacturers are not compatible with Neptune; therefore, the meters have to be replaced with Neptune meters.compatible with Neptune; therefore, the meters have to be replaced with Neptune meters.    HD Supply is HD Supply is the only distributor in the Houston area for Neptune meters making them the sole source supplier for the only distributor in the Houston area for Neptune meters making them the sole source supplier for the only distributor in the Houston area for Neptune meters making them the sole source supplier for the only distributor in the Houston area for Neptune meters making them the sole source supplier for this area.  The cost of a residential meter or a 3/4 x 5/8 meter is $204.76, it is estimated that over 800 meters will The cost of a residential meter or a 3/4 x 5/8 meter is $204.76, it is estimated that over 800 meters will be replaced this FY. be replaced this FY. Action Required of Council:Action Required of Council: Consider approval or other action to purchase Neptune meters from HD Supply.Consider approval or other action to purchase Neptune meters from HD Supply. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate January 6, 2016 Subject: Neptune Sole Source Distribution in Houston area To whom it may concern, Neptune Technology Group, Inc. has always valued La Porte, Texas as a loyal customer. I want to clarify that HD Supply-Houston is the exclusive full line Neptune distributor for the Houston, Texas area. As the sole source provider of all Neptune products, the City of La Porte can continue to depend on the local HD Supply- Houston branch for your metering needs. Regards, Rex Baxter Senior Territory Manager Neptune Technology Group, Inc. REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Tim TietjensTim Tietjens Requested By:Requested By: Account Number:Account Number: Planning & DevelopmentPlanning & Development Department:Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Resolution Resolution 2. FHAST FHAST SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS As part of the Hurricane Ike recovery process, the GLO required each city eligible for funding to As part of the Hurricane Ike recovery process, the GLO required each city eligible for funding to complete a Fair Housing Activity Statement (FHAST) in order to receive continued funding.  La Portecomplete a Fair Housing Activity Statement (FHAST) in order to receive continued funding.  La Porte’s FHAST, which was developed by an appointed Fair Housing Work Group and approved by Council, FHAST, which was developed by an appointed Fair Housing Work Group and approved by Council, identified a possible impediment to fair housing in Texas communities, commonly referred to as a identified a possible impediment to fair housing in Texas communities, commonly referred to as a “Not in my Backyardin my Backyard””((NIMBY) attitude.  To overcome this impediment, the City is tasked with developing an NIMBY) attitude.  To overcome this impediment, the City is tasked with developing an Anti-NIMBYism Action Plan. NIMBYism Action Plan.  The FHAST offers the following considerations for addressing NIMBY:The FHAST offers the following considerations for addressing NIMBY: 1.NIMBY opposition needs to be anticipated and planning and outreach should occur on the front NIMBY opposition needs to be anticipated and planning and outreach should occur on the front end of projects.  To mitigate defensive and reactive responses, planning should include strategies end of projects.  To mitigate defensive and reactive responses, planning should include strategies end of projects.  To mitigate defensive and reactive responses, planning should include strategies end of projects.  To mitigate defensive and reactive responses, planning should include strategies for education, outreach and marketing that provide accurate information and promote the positive for education, outreach and marketing that provide accurate information and promote the positive aspects and benefits of affordable housing to build support among community residents.aspects and benefits of affordable housing to build support among community residents. 1.The Department of Housing and Urban Development (HUD) provides extensive information about The Department of Housing and Urban Development (HUD) provides extensive information about Fair Housing and examples at Fair Housing and examples at www.hud.govwww.hud.gov.  Generally, communities should consider:.  Generally, communities should consider: Working with local officials, editorial boards, religious and civic organizations and other Working with local officials, editorial boards, religious and civic organizations and other community leaders to initiate education programs.community leaders to initiate education programs. Seeking opportunities to present information to community organizations by requesting to be Seeking opportunities to present information to community organizations by requesting to be placed on their meeting agendas.placed on their meeting agendas. Including a visit to the Group Home residence as part of an education program.Including a visit to the Group Home residence as part of an education program. Answering all questions.Answering all questions. Talking with local neighborhood leaders, including elected representatives, and setting up a Talking with local neighborhood leaders, including elected representatives, and setting up a neighborhood meeting.neighborhood meeting. Setting up a liaison committee consisting of advocates, group residents, and neighborhood Setting up a liaison committee consisting of advocates, group residents, and neighborhood residents to discuss issues.residents to discuss issues. Identifying areas that meet AFFH (Affirmatively Furthering Fair Housing) targets where the Identifying areas that meet AFFH (Affirmatively Furthering Fair Housing) targets where the community supports development, has worked with community groups and potentially uses funds community supports development, has worked with community groups and potentially uses funds to assist the development of multito assist the development of multi--family affordable housing.family affordable housing. Action Required of Council:Action Required of Council: Consider approval or other action of a resolution adopting an AntiConsider approval or other action of a resolution adopting an Anti--NIMBYism Action Plan for the City of NIMBYism Action Plan for the City of La Porte. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Rosalyn EptingRosalyn Epting Requested By:Requested By: Account Number:Account Number: Parks & RecreationParks & Recreation Department:Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Ordinance Ordinance SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS thth At the December 14At the December 14, 2015 Council Meeting, staff discussed and approved the proposed Lomax Open , 2015 Council Meeting, staff discussed and approved the proposed Lomax Open Riding Rules that had been developed by the Lomax Rodeo Arena User Committee.  At that time staff Riding Rules that had been developed by the Lomax Rodeo Arena User Committee.  At that time staff was instructed to formalize the ordinance and return to Council for approval. was instructed to formalize the ordinance and return to Council for approval.  The ordinance under consideration formalizes the rules, as presented at the December 14, 2015 The ordinance under consideration formalizes the rules, as presented at the December 14, 2015 Council meeting.Council meeting. Action Required of Council:Action Required of Council: Consider approval or other action of Ordinance amending Chapter 50 of the City of la Porte Code of Consider approval or other action of Ordinance amending Chapter 50 of the City of la Porte Code of Ordinances by adding rules for renters and open riding users at Lomax Arena.Ordinances by adding rules for renters and open riding users at Lomax Arena. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate REQUEST FOR LA PORTE CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: 25 January 2016 Source of Funds: Requested By: Scott D. Livingston Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibit: CC Resolution Approving EDC By-laws Budgeted Item: YES NO Exhibit: LPDC’s Amended By-Laws, 9 February 2015 Exhibit: City Council’s Approval of LPDC Amended Bylaws Exhibit: LP Development Corporation’s First Year Revenues Exhibit: Purchasing Policy Manual SUMMARY & RECOMMENDATION On 11 January 2015, the LPDC Board voted to adopt amendments made by the LPDC Board to the corporation’s by-laws that increase the limit for all LPDC expenditures, including enhancement $50,000 grants, without prior approval from the City Council, to for the following reasons: 1)The LPDC Board’s sales tax revenue for its full first year in 1999-2000 was $755,735.75 . The corporation’s projected revenues this year, according to the latest $2,434,3753.22 financial report, are expected to be , which is times greater than $755,735.75$48,300 . $15,000 times 3.22 is . 2)In order to shorten and simplify the approval process for enhancement grant projects, the LPDC Board requests the City Council increase its authorized limit for all qualifying $50,000 projects of the revised LPEGP from $25,000 to . Currently, enhancement grant projects up to $25,000 may be approved by the LPDC Board without additional approval of the City Council, while enhancement grant projects for sums greater than $25,000 must also be approved by the City Council. On 11 November 2015 the LPDC Board voted to increase the Board’s contribution for each qualifying project in the La Porte Enhancement $50,000 Grant Program from $25,000 to . 3)The City’s Purchasing Policy authorizes every department of the City to spend up to $49,999.99, per the conditions and requirements outlined in the same policy, toward budgeted expenses without additional City Council approval. All expenses of $50,000 or more require additional City Council approval. 1 Therefore, the LPDC Board requests that the City Council approve the following changes to the corporation’s by-laws: 5.04 The Board of Directors shall obtain prior City Council approval of all real estate acquisitions, real estate leases exceeding one year and/or any other leases exceeding one year; all bond issues or other debt extending of $50,000.00 beyond one year; and, contracts, expenditures, or debts or more . The Board of Directors shall have the authority to enter into all other budgeted transactions without prior or additional City Council approval. Notwithstanding the foregoing, the Board of Directors shall have the authority to approve all budgeted Enhancement Grant expenditures $50,000.00 for an amount equal to or less than , without additional approval of City Council. Amendments to the Corporation’s budget must be approved by the City Council. Please note that the latest version of the corporation’s by-laws, which were revised in February 2015 and approved by the City Council in March 2015, are enclosed. The City Council is the final approving authority for all amendments to the by-laws. Action Required by the La Porte City Council: Consider approval or other action adopting proposed amendments made by the La Porte Development Corporation Board of Directors to the by-laws of the La Porte Development Corporation Approved for the La Porte City Council Agenda Corby D. Alexander, City Manager Date 2 From: Wolny, Shelley Sent: Wednesday, December 16, 2015 10:54 AM To: Livingston, Scott <LivingstonS@laportetx.gov> Cc: Dolby, Michael <DolbyM@laportetx.gov> Subject: RE: Need info RE: ED Board sales tax revenue in 1999? Scott, Here you go. The first payment was in fiscal year 1999, but the other 11 are in fiscal year 2000. The total received during the first 12 months was $755,735.75. Thanks, Shelley FY1999 –FY2000 September $50,484.48 October53,865.07 November84,471.75 December 74,981.31 January 37,600.93 February 95,607.10 March 70,694.08 April 80,641.97 May112,039.75 June 56,518.36 July53,132.71 August 86,667.20 Total $755,735.75 From: Livingston, Scott Sent: Tuesday, December 15, 2015 3:30 PM To: Wolny, Shelley <WolnyS@laportetx.gov>; Dolby, Michael <DolbyM@laportetx.gov> Subject: Need info RE: ED Board sales tax revenue in 1999? Shelley and Michael, In preparation for the ED Board meeting on 11 Jan. 2016, and at the request of ED Board member Randy Woodard, would you please tell me how much sales tax revenue the La Porte Development Corporation received in its first 12 months of operation? I think this would be during the 1999-2000 timeframe. Thanks! Scott REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/AN/A Michael DolbyMichael DolbySource of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: FinanceFinance Department:Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Plan of Finance Plan of Finance 2. Refunding Ordinance Refunding Ordinance SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS At this time, staff would like to issue refunding bonds on several series that are callable in the near At this time, staff would like to issue refunding bonds on several series that are callable in the near future.  Refunding City debt during the current market conditions will yield the City a significant amount future.  Refunding City debt during the current market conditions will yield the City a significant amount of savings (approximately $433,000). During the December rate hike, the current market conditions of savings (approximately $433,000). During the December rate hike, the current market conditions were viewed as optimistic by the Federal Reserve. The Citywere viewed as optimistic by the Federal Reserve. The City’’s financial advisors RBC Capital Markets s financial advisors RBC Capital Markets performed an analysis of outstanding debt to identify refinancing opportunities on several issues that are performed an analysis of outstanding debt to identify refinancing opportunities on several issues that are callable.    The bond market for refunding is time sensitive and interest rate sensitive; therefore, staff would like to The bond market for refunding is time sensitive and interest rate sensitive; therefore, staff would like to utilize the best method available for selling the debt.  Staff recommends that the City use the negotiated utilize the best method available for selling the debt.  Staff recommends that the City use the negotiated sales method, which allows the City to enter the market during favorable conditions.  La Porte has sales method, which allows the City to enter the market during favorable conditions.  La Porte has utilized this method in the past and it has provided favorable outcomes.   Staff is recommending using utilized this method in the past and it has provided favorable outcomes.   Staff is recommending using utilized this method in the past and it has provided favorable outcomes.   Staff is recommending using utilized this method in the past and it has provided favorable outcomes.   Staff is recommending using Coastal Securities (the CityCoastal Securities (the City’’s previous underwriter)  s previous underwriter)   The City’s Financial Advisors and Bond Attorneys are present this evening to answer any questions. s Financial Advisors and Bond Attorneys are present this evening to answer any questions.  Action Required of Council:Action Required of Council: Consider approval or other action of an Ordinance authorizing and ordering the issuance, sale and Consider approval or other action of an Ordinance authorizing and ordering the issuance, sale and delivery of City of La Porte, Texas, general obligation refunding bonds, series 2016. delivery of City of La Porte, Texas, general obligation refunding bonds, series 2016.  Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate Robert V. Henderson Managing Director , Phone: (210) 805-1118 Facsimile: (210) 805-1119 robert.henderson@rbccm.com CLP,T ITY OF A ORTE EXAS PPF RELIMINARY LAN OF INANCE D:J7,2016 ATED ANUARY I: NTRODUCTION In July 2016, in conjunction with the RBC Capital nding debt to determine if there were any refunding opportunities given the interest rate market conditions. There were. However, in order to insure the lowest of those certificates, we recommended that the City not undertake the refunding in calendar year 2015. We indicated that we would update our analysis to consider the refunding in January 2016. The purpose of this report is to provide that promised update. FB: INANCIAL ACKGROUND Including the recently issued Certificates of Obligation, Series 2015, the City of La Porte currently has eleven ad valorem property tax secured debt obligations outstanding as follows: Original Currently Final Issue: Amount: Outstanding: Maturity: Limited Tax Bonds, Series 2002 $5,400,000 $ 270,000 3/15/2016 Certificates of Obligation, Series 2005 1,800,000 180,000 3/15/2017 General Obligation Bonds, Series 2005 7,675,000 780,000 3/15/2017 Certificates of Obligation, Series 2006 5,765,000 615,000 3/15/2017 General Obligation Bonds, Series 2006 1,200,000 265,000 3/15/2018 Certificates of Obligation, Series 2007 8,075,000 3,760,000 3/15/2029 Certificates of Obligation, Series 2010 6,265,000 4,905,000 3/15/2026 General Obligation Ref. Bonds, Series 2010 4,295,000 2,175,000 3/15/2020 General Obligation Ref. Bonds, Series 2012 9,435,000 9,285,000 3/15/2025 General Obligation Ref. Bonds, Series 2014 9,300,000 8,585,000 3/15/2025 Certificates of Obligation, Series 2015 7,770,000 7,770,000 3/15/2030 The outstanding debt issues bear interest at rates ranging from 1.1% to 5.0% depending on the original series. RA: EFUNDING NALYSIS Of the above debt; the Series 2007 Certificates of Obligation , meaning refundable, maturities outstanding at interest rates ranging from 4.0% to 4.2%. In July, it was estimated that these maturities could be refunded with gross dollar and net present value savings of $375,985 and $317,571 respectively or 9.28% of the refunded amount of debt. As of this date, those estimates have increased to $497,816 and $433,677 respectively or 12.68% of the refunded amount of debt. 303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets San Antonio, TX 78215 Member NYSE/SIPC City of La Porte, Texas January 7, 2016 Page 2 SRD: ELLING THE EFUNDING EBT There are three generally prescribed methods for selling public debt; Selling by competitive bid, selling on a negotiated sale basis and conducting a private placement. The first two methods involve sales to the general public, obtaining bond ratings, preparing offering documents and involving underwriters. The private placement method entails presenting the debt to a number of commercial banks (both locally and on a regional basis) and asking them for bids. We would then present the City with a bond purchase agreement between the winning bidder and the City reflecting those terms. Given the advance refunding nature of the issue, which is timing and interest rate sensitive, it is our recommendation that the debt be sold by the negotiated sale method. Given the modest size of the issue, it is our recommendation that the City utilize a single underwriting firm for maximum focus on distribution. The City has historical relationships with two underwriting firms including Coastal Securities and BOSC, Inc. Both of has indicated a desire to utilize Coastal Securities as the sole underwriter. We concur with that decision. It is also our recommendation, in order to minimize costs of issuance, that the City utilize only one rating agency. Historically on smaller issues, the City used Standard and T: IMING General Obligation Refunding Bonds do not require any special notices or public hearings. There are two methods for handling council approval. The first is the more traditional in that the Council approves a plan of finance and authorizes the Director of Finance, working with the Financial Advisor, to proceed with rating presentations, document preparation and set a predetermined date to sell the bonds and bring to the Council an ordinance complete with interest rates for Council approval. The second method has become popular in the past 4-5 issuance of the debt is presented to council that does not set out the final interest rates of the issue but instead delegates the authority to negotiate such final terms to one or more City officials; typically the City Manager and/or the Director of Finance, SO LONG AS CERTAIN PARAMETERS APPROVED BY THE COUNCIL ARE MET. The parameters set out in the ordinance included a maximum amount of debt to be issued, the maximum level of interest rates that can be approved, a maximum maturity of the debt and a minimum level of savings that must be achieved and puts a time limit on the authorization. In this manner, City administration has the latitude to monitor the market as preparations are made and to choose the market conditions in which to enter rather than being forced to accept whatever market conditions exist at the time of a predetermined sale date. Given the variety of timing considerations and that the City has used the parameters sale method in the past with success, is our recommendation to use that method. To that end, a parameters resolution has been th meeting. Of course, the decision to proceed and the method and timing on which to proceed are entirely at the discretion of the City Council. S: UMMARY The City of La Porte has developed a strong history of actively monitoring and managing its debt portfolio to lock in substantial savings as opportunities arise. As always, we cannot be sure of final savings until the debt is rated and sold. However, based on these estimates, RBC Capital Markets recommends moving forward with this proposed refunding. 303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets San Antonio, TX 78215 Member NYSE/SIPC ORDINANCE AUTHORIZING AND ORDERING THE ISSUANCE, SALE AND DELIVERY OF CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016; DELEGATING TO AUTHORIZED REPRESENTATIVES THE AUTHORITY TO APPROVE THE AMOUNT, INTEREST RATES, PRICE AND TERMS THEREOF AND CERTAIN OTHER PROCEDURES AND PROVISIONS RELATED THERETO; AUTHORIZING THE REDEMPTION PRIOR TO MATURITY OF CERTAIN OUTSTANDING OBLIGATIONS; AND MAKING OTHER PROVISIONS REGARDING THE BONDS AND MATTERS INCIDENT THERETO BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: ARTICLE I. FINDINGS AND DETERMINATIONS Section 1.1.: Findings and Determinations. The City Council hereby officially finds and determines that: (a) authorized by its Home Rule Charter and the Constitution and laws of the State of Texas, particularly Chapter 1207, Texas Government Code, as amended (the (b) The City, acting through its City Council, has heretofore issued and there remain outstanding the obligations described in Schedule 1 attached hereto (the (c) The City desires to refund all or a portion of the Refunding Candidates in advance of their maturities in order to achieve net present value debt service savings for the City; (d) The City desires, pursuant to Section 1207.007 of the Act, to delegate to two or more of the Authorized Representatives named herein the authority to effect the sale of the Bonds, including the selection of the Refunding Candidates to be refunded (such selected Refunding Candidates to be known herein as the (e) The City is authorized by the Act to accomplish such refunding by depositing directly with any place of payment for the Refunded Obligations or a trust company or commercial bank the proceeds from the sale of such refunding bonds, together with any other legally available funds, which shall be sufficient to provide for the payment of the Refunded Obligations on their date of redemption, and such deposit shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations; and 1 HOU:3622910.1 (f) Upon the issuance of the refunding bonds herein and the deposit of moneys and investments herein authorized, the Refunded Obligations shall no longer be regarded as being outstanding, except for the purpose of being paid from such moneys and investments, and the pledges, liens, trusts and all other covenants, provisions, terms and conditions of the ordinances authorizing the issuance of the Refunded Obligations shall be, with respect to the Refunded Obligations, discharged, terminated and defeased. ARTICLE II. DEFINITIONS AND INTERPRETATIONS Section 2.1.: Definitions. As used herein, the following terms shall have the meanings specified, unless the context clearly indicates otherwise: , as amended. Assistant City Manager and the Finance Director of the City. shall mean any or all of the City of La Porte, Texas, General Obligation Refunding Bonds, Series 2016, authorized by this Ordinance. verning body of the City. successor securities depository. corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. Debt Service Fund established by the City and described in section 5.2 of this Ordinance. 2 HOU:3622910.1 e of payment for the Refunded Obligations or trust company or commercial bank identified in the Escrow Agreement, and its successors in such capacity. relating to the deposit of funds to pay the Refunded Obligations. twelve-month period beginning on the first day of October of a calendar year and ending on the last day of September of the next succeeding calendar year and each such period may be designated with the number of the calendar year in which such period ends. 2016, and each September 15 and March 15 thereafter until maturity or earlier redemption of in exchange for payment of the purchase price therefor. Representatives and containing the information regarding the Bonds specified in Sections 3, 4 and 5 hereof and substantially in the form of Exhibit A hereto. hereto. all Bonds theretofore and thereupon delivered pursuant to this Ordinance except: (a) any Bonds canceled by or on behalf of the City at or before such date; (b) any Bonds defeased pursuant to the defeasance provisions of this Ordinance or otherwise defeased as permitted by applicable law; and (c) any Bonds in lieu of or in substitution for which a replacement Bond shall have been delivered pursuant to this Ordinance. Agent/Registrar Agreement referred to in Section 6.1 of this Ordinance and its successors in the capacities of paying agent and registrar for the Bonds. month immediately preceding the applicable Interest Payment Date. Pricing Certificate. Agent/Registrar in which are maintained the names and addresses of, and the principal amounts registered to, each Registered Owner of Bonds. 3 HOU:3622910.1 registered in the Register. Public Accountants, verifying the accuracy of certain mathematical computations relating to the Bonds and the refunding of the Refunded Obligations. ate. Section 2.2.: Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Bonds and the validity of the levy of ad valorem taxes to pay the principal of and interest on the Bonds. ARTICLE III. TERMS OF THE BONDS Section 3.1.: Amount, Purpose and Authorization. (a) The Bonds shall be issued in fully Charter and the Act in the total authorized aggregate principal amount not to exceed THREE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($3,5000,000) for the purpose of providing all or part of the funds to refund the Refunded Obligations. Proceeds of the Bonds also will be used to pay costs of issuing of the Bonds and refunding the Refunded Obligations. (b) It is hereby found and determined that the refunding of the Refunded Obligations and the issuance of the Bonds will benefit the City by reducing net present value debt service, and that such benefit is sufficient consideration for the issuance of the Bonds. Section 3.2.: Designation and Date Porte, Texas, General Obligation Refunding Bonds, Serie Certificate. Section 3.3.: Numbers, Denomination, Interest Rates and Maturities. Unless otherwise numbers and shall mature on the dates, in the principal amounts and bearing interest at the rates ay be transferred and exchanged as set out in this Ordinance. Bonds delivered in transfer of or in exchange for other Bonds shall be numbered in order of their authentication by the Paying Agent/Registrar, shall be in the denomination of $5,000 or integral multiples thereof and shall mature on the same date and bear interest at the same rate as the Bond or Bonds in lieu of which they are delivered. 4 HOU:3622910.1 Section 3.4.: Sale and Delivery of Bonds. As authorized by Section 1207.007 of the Act, the Authorized Representatives are hereby authorized to act on behalf of the City in selling and delivering the Bonds and carrying out the other procedures specified in this Ordinance including, without limitation, determining the date on and price at which the Bonds will be sold, the Issuance Date and dated date, the dates on which the Bonds will mature, the aggregate principal amount of the Bonds, the principal amount to mature on each maturity date, the rate of interest to be borne by each such maturity, any optional and mandatory sinking fund redemption provisions, the aggregate principal amount of Refunded Obligations and the particular Refunding Candidates to be Refunded Bonds, and all other matters not expressly provided in this Ordinance relating to the issuance, sale and delivery of the Bonds, including the refunding of the Refunded the form attached hereto as Exhibit A; provided that: (a)the net effective interest rate on the Bonds shall not exceed 4.00%; (b)the sum of the principal amounts of the Bonds, which may not exceed the maximum principal amount authorized in Section 3.1 hereof, plus any net premium from the sale of the Bonds, must be sufficient to provide amounts necessary to fund the costs and expenses of refunding the Refunded Obligations discount; (c)the net present value savings to the City in debt service resulting from the issuance of the Bonds shall be at least 7.00% of the principal amount of the (d)the maximum maturity of the Bonds shall not exceed March 15, 2029; and (e)any finding by the Authorized Representatives relating to the sale and delivery of the Bonds and the designation of Refunded Obligations shall have the same force and effect as a finding or determination made by the Board. The authority conferred by this Section shall expire at 5:00 p.m. on July 25, 2016. Section 3.5.: Redemption Prior to Maturity. (a) The Bonds shall be subject to optional redemption prior to maturity as provi (b) The Bonds shall be subject to mandatory sinking fund redemption as provided in (c) Bonds may be redeemed in part only in integral multiples of $5,000. If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in integral multiples of $5,000. In selecting portions of Bonds for redemption, each Bond shall be treated as representing that number of Bonds of $5,000 denomination which is obtained by dividing the principal amount of such Bond by $5,000. Upon 5 HOU:3622910.1 presentation and surrender of any Bond for redemption in part, the Paying Agent/Registrar, in accordance with the provisions of this Ordinance, shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered. (d) Notice of any redemption, identifying the Bonds or portions thereof to be redeemed, shall be sent by United States mail, first class, postage prepaid, to the Registered Owners thereof at their addresses as shown on the Register, not less than thirty (30) days before the date fixed for such redemption. By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar for the payment of the redemption price of the Bonds called for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, the Bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being Outstanding except for the purpose of being paid with the funds so provided for such payment. Section 3.6.: Manner of Payment, Characteristics, Execution and Authentication. The Bonds shall be payable, shall have the characteristics and shall be executed, sealed, registered and authenticated, all as provided and in the manner indicated in the Form of Bond set forth in Attachment B to Exhibit A hereto. If any officer of the City whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of the Bonds or before the delivery of the Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. The approving legal opinion of Andrews Kurth LLP, Houston, Texas, Bond Counsel, may be printed on the back of the Bonds over the certification of the City Secretary, which may be executed in facsimile. CUSIP numbers also may be printed on the Bonds, but errors or omissions in the printing of either the opinion or the numbers shall have no effect on the validity of the Bonds. Section 3.7.: Special Record Date. If interest on any Bond is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter, the Paying Agent/Registrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. The Paying Agent/Registrar shall establish a Special Record Date when funds to make such interest payment are received from or on behalf of the City. Such Special Record Date shall be fifteen (15) days prior to the date fixed for payment of such past due interest, and notice of the date of payment and the Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five (5) days prior to the Special Record Date, to each affected Registered Owner as of the close of business on the day prior to mailing of such notice. Section 3.8.: Authentication. Except for the Bonds to be initially issued, which need not be authenticated by the Paying Agent/Registrar, only such Bonds as shall bear thereon a certificate of authentication, substantially in the form provided in Article IV of this Ordinance, manually executed by an authorized representative of the Paying Agent/Registrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such 6 HOU:3622910.1 duly executed certificate of authentication shall be conclusive evidence that the Bond so authenticated was delivered by the Paying Agent/Registrar hereunder. Section 3.9.: Ownership. The City, the Paying Agent/Registrar and any other person may treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of making and receiving payment of the principal thereof and interest thereon and for all other purposes, whether or not such Bond is overdue, and neither the City nor the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Registered Owner of any Bond in accordance with this Section shall be valid and effective and shall discharge the liability of the City and the Paying Agent/Registrar upon such Bond to the extent of the sums paid. Section 3.10.: Registration, Transfer and Exchange. So long as any Bond remains Outstanding, the Paying Agent/Registrar shall keep the Register at its corporate trust office and, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the registration and transfer of the Bonds in accordance with the terms of this Ordinance. Each Bond shall be transferable only upon the presentation and surrender thereof at the office of the Paying Agent/Registrar, accompanied by an assignment duly executed by the Registered Owner or his authorized representative in form satisfactory to the Paying Agent/Registrar. To the extent possible, upon due presentation of any Bond for transfer, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor, within seventy-two (72) hours after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the Bond or Bonds so presented and surrendered. All Bonds shall be exchangeable upon the presentation and surrender thereof at the office of the Paying Agent/Registrar for a Bond or Bonds, maturity and interest rate and in any authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Paying Agent/Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section. Each Bond delivered by the Paying Agent/Registrar in accordance with this Section shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. All Bonds issued in transfer or exchange shall be delivered to the Registered Owners thereof at the office of the Paying Agent/Registrar or sent by United States mail, first class, postage prepaid. The City or the Paying Agent/Registrar may require the Registered Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Bond. Any fee or charge of the Paying Agent/Registrar for such transfer or exchange shall be paid by the City. 7 HOU:3622910.1 The Paying Agent/Registrar shall not be required to transfer or exchange any Bond called for redemption in whole or in part during the forty-five (45) day period immediately prior to the date fixed for redemption; provided, however, that this restriction shall not apply to the transfer or exchange by the Registered Owner of the unredeemed portion of a Bond called for redemption in part. Section 3.11.: Book-Entry Only System. The definitive Bonds shall be initially issued in the form of a separate single fully registered Bond for each of the maturities thereof. Upon initial issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as nominee of DTC, and except as provided in Section 3.11 hereof, all of the Outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks being mailed to the Owner at the close of business on the Record Date, With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (a) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (b) the delivery to any DTC Participant or any other person, other than a Bondholder, as shown on the Register, of any notice with respect to the Bonds, including any notice of redemption or (c) the payment to any DTC Participant or any other person, other than a Bondholder as shown in the Register, of any amount with respect to principal of Bonds, premium, if any, or interest on the Bonds. Except as provided in Section 3.10 of this Ordinance, the City and the Paying Agent/Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Register as the absolute owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on Bonds, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfer with respect to such Bond, and for all other purposes whatsoever. The Paying Agent/Registrar shall pay all principal of Bonds, premium, if any, and interest on the Bonds only to or upon the order of the respective owners, as shown in the Register as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and with respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than an owner shall receive a Bond evidencing the obligation of the City to make payments of amounts due pursuant to this Ordinance. Section 3.12.: Payments and Notices to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, as long as any Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and 8 HOU:3622910.1 interest on the Bonds, and all notices with respect to such Bonds shall be made and given, respectively, in the manner provided in the representation letter of the City to DTC. Section 3.13.: Successor Securities Depository; Transfer Outside Book-Entry Only System. In the event that the City or the Paying Agent/Registrar determines that DTC is incapable of discharging its responsibilities described herein and in the representation letter of the City to DTC, and that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City or the Paying Agent/Registrar shall (a) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (b) notify DTC of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC accounts. In such event, the Bonds shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Bondholders transferring or exchanging Bonds shall designate, in accordance with the provisions of this Ordinance. Section 3.14.: Replacement Bonds. Upon the presentation and surrender to the Paying Agent/Registrar of a damaged or mutilated Bond, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor a replacement Bond, of the same maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The City or the Paying Agent/Registrar may require the Registered Owner of such Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Paying Agent/Registrar and the City. If any Bond is lost, apparently destroyed or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and ordinances of the City, and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall execute, and the Paying Agent/Registrar shall authenticate and deliver, a replacement Bond of the same maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding, provided that the Registered Owner thereof shall have: (a) furnished to the City and the Paying Agent/Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Bond; (b) furnished such security or indemnity as may be required by the Paying Agent/Registrar and the City to save and hold them harmless; I paid all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Paying Agent/Registrar and any tax or other governmental charge that may be imposed; and (d) met any other reasonable requirements of the City and the Paying Agent/Registrar. 9 HOU:3622910.1 If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and the Paying Agent/Registrar shall be entitled to recover such replacement Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Paying Agent/Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Bond, authorize the Paying Agent/Registrar to pay such Bond. Each replacement Bond delivered in accordance with this Section shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such replacement Bond is delivered. Section 3.15.: Cancellation. All Bonds paid or redeemed in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be canceled and destroyed upon the making of proper records regarding such payment or redemption. The Paying Agent/Registrar shall periodically furnish the City with certificates of destruction of such Bonds. ARTICLE IV. FORM OF BONDS the form attached hereto as Attachment B to Exhibit A, with such omissions, insertions and variations as may be necessary or desirable, and not prohibited by this Ordinance. 10 HOU:3622910.1 ARTICLE V. SECURITY FOR THE BONDS Section 5.1.: Pledge and Levy of Taxes. (a) To provide for the payment of principal of and interest on the Bonds, there is hereby levied, within the limits prescribed by law, for the current year and each succeeding year thereafter, while the Bonds or any part of the principal thereof and the interest thereon remain outstanding and unpaid, an ad valorem tax upon all taxable property within the City sufficient to pay the interest on the Bonds and to create and provide a sinking fund of not less than 2% of the principal amount of the Bonds or not less than the principal payable out of such tax, whichever is greater, with full allowance being made for tax delinquencies and the costs of tax collection, and such taxes, when collected, shall be applied to the payment of principal of and interest on the Bonds by deposit to the Debt Service Fund and to no other purpose. (b) The City hereby declares its purpose and intent to provide and levy a tax legally sufficient to pay the principal of and interest on the Bonds, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax. As long as any Bonds remain outstanding, all moneys on deposit in, or credited to, the Debt Service Fund shall be secured by a pledge of security, as provided by law for cities in the State of Texas. Section 5.2.: Debt Service Fund. The General Obligation Refunding Bonds, Series 2016, benefit of the Bonds. The City shall establish and maintain such fund at an official City depository. Any amount on deposit in the Debt Service Fund shall be maintained by the City in trust for the Registered Owners of the Bonds. Such amount, plus any other amounts deposited by the City into such fund and any and all investment earnings on amounts on deposit in such fund, shall be used only to pay the principal of, premium, if any, and interest on the Bonds. Section 5.3.: Further Proceedings. After the Bonds to be initially issued have been executed, it shall be the duty of the Mayor to deliver the Bonds to be initially issued and all pertinent records and proceedings to the Attorney General for examination and approval. After the Bonds to be initially issued shall have been approved by the Attorney General, they shall be delivered to the Comptroller for registration. Upon registration of the Bonds to be initially issued, the Comptroller (or a deputy lawfully designated in writing to act for the Comptroller) attached to the Bonds to be initially issued, and the seal of said Comptroller shall be impressed, or placed in facsimile, thereon. 11 HOU:3622910.1 ARTICLE VI. CONCERNING THE PAYING AGENT/REGISTRAR Section 6.1.: Acceptance. The Paying Agent/Registrar hereby appointed as the initial paying agent and registrar for the Bonds pursuant to the terms and provisions of the Paying Agent/Registrar Agreement by and between the City and the Paying Agent/Registrar. The Paying Agent/Registrar Agreement shall be substantially in the form presented to City Council with this Ordinance, the terms and provisions of which are hereby approved, and the Mayor is hereby authorized to execute and deliver such Paying Agent/Registrar Agreement on behalf of the City in multiple counterparts and the City Secretary is hereby authorized to attest thereto and ch initial Paying Agent/Registrar and any successor Paying Agent/Registrar, by undertaking the performance of the duties of the Paying Agent/Registrar hereunder, and in consideration of the payment of any fees pursuant to the terms of any contract between the Paying Agent/Registrar and the City and/or the deposits of money pursuant to this Ordinance, shall be deemed to accept and agree to abide by the terms of this Ordinance. Section 6.2.: Trust Funds. All money transferred to the Paying Agent/Registrar in its capacity as Paying Agent/Registrar for the Bonds under this Ordinance (except any sums be the property of the City and shall be disbursed in accordance with this Ordinance. Section 6.3.: Bonds Presented. Subject to the provisions of Section 6.4, all matured Bonds presented to the Paying Agent/Registrar for payment shall be paid without the necessity of further instructions from the City. Such Bonds shall be canceled as provided herein. Section 6.4.: Unclaimed Funds Held by the Paying Agent/Registrar. Funds held by the Paying Agent/Registrar that represent principal of and interest on the Bonds remaining unclaimed by the Registered Owner thereof after the expiration of three years from the date such funds have become due and payable (a) shall be reported and disposed of by the Paying Agent/Registrar in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent such provisions are applicable to such funds, or (b) to the extent such provisions do not apply to the funds, such funds shall be paid by the Paying Agent/Registrar to the City upon receipt by the Paying Agent/Registrar of a written request therefor from the City. The Paying Agent/Registrar shall have no liability to the Registered Owners of the Bonds by virtue of actions taken in compliance with this Section. Section 6.5.: Paying Agent/Registrar May Own Bonds. The Paying Agent/Registrar in its individual or any other capacity, may become the owner or pledgee of Bonds with the same rights it would have if it were not the Paying Agent/Registrar. Section 6.6.: Successor Paying Agents/Registrars. The City covenants that at all times while any Bonds are Outstanding it will provide a legally qualified bank, trust company, financial institution or other agency to act as Paying Agent/Registrar for the Bonds. The City reserves the right to change the Paying Agent/Registrar for the Bonds on not less than sixty (60) 12 HOU:3622910.1 than 60 days prior to the next succeeding principal or interest payment date on the Bonds. Promptly upon the appointment of any successor Paying Agent/Registrar, the previous Paying Agent/Registrar shall deliver the Register or a copy thereof to the new Paying Agent/Registrar, and the new Paying Agent/Registrar shall notify each Registered Owner, by United States mail, first class, postage prepaid, of such change and of the address of the new Paying Agent/Registrar. Each Paying Agent/Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Ordinance. ARTICLE VII. PROVISIONS CONCERNING SALE AND APPLICATION OF PROCEEDS OF BONDS Section 7.1.: Sale of Bonds. The Bonds shall be sold and delivered to the Underwriters the Authorized Representatives are hereby authorized and directed to execute the Bond Purchase Agreement on behalf of the City, and the Authorized Representatives and all other officers, agents and representatives of the City are hereby authorized to do any and all things necessary or desirable to satisfy the conditions set out therein and to provide for the issuance and delivery of the Bonds. Section 7.2.: Approval, Registration and Delivery. The Mayor is hereby authorized to have control and custody of the Bonds and all necessary records and proceedings pertaining thereto pending their delivery, and the Mayor and other officers and employees of the City are hereby authorized and directed to make such certifications and to execute such instruments as may be necessary to accomplish the delivery of the Bonds and to assure the investigation, examination and approval thereof by the Attorney General and the registration of the initial Bonds by the Comptroller. Upon registration of the Bonds, the Comptroller (or the prescribed herein to be attached or affixed to each Bond initially delivered and the seal of the Comptroller shall be impressed or printed or lithographed thereon. Section 7.3.: Offering Documents; Ratings. The City hereby authorizes the preparation of a Preliminary Official Statement and final Official Statement, in substantially the form of the Preliminary Official Statement, with such modifications as shall be necessary to describe the final terms of the Bonds, dated as of the sale date, relating to the Bonds, and any addenda, supplement or amendment thereto, and approves the distribution of such Preliminary Official Statement and Official Statement in the offer and sale of the Bonds and in the reoffering of the Bonds by the Underwriters, with such changes therein or additions thereto as the officials executing same may deem advisable, such determination to be conclusively evidenced by their execution thereof. The Mayor is hereby authorized and directed to execute, and the City Secretary is hereby authorized and directed to attest, the final Official Statement. The 13 HOU:3622910.1 Authorized Representatives are hereby authorized to deem the Preliminary Official Statement -12 of the Securities Exchange Commission at such time as such document omits no more than the information permitted by Subsection (b)(1) of Rule 15c2- 12. Section 7.4.: Application of Proceeds of Bonds. Proceeds from the sale of the Bonds shall, promptly upon receipt by the City, be applied as follows: (a)A portion of the proceeds shall be applied to pay expenses arising in connection with the issuance of the Bonds and the refunding of the Refunded Obligations; (b)A portion of the proceeds shall be used to establish an escrow fund to refund the Refunded Obligations, as more fully provided in the Escrow Agreement; and (c)any remaining proceeds shall be transferred to the Debt Service Fund. Section 7.5.:Covenants to Maintain Tax Exemption. (a)Definitions. When used in this Section, the following terms have the following meanings: if any, effective on or before the Issue Date. 1.148-1(b) of the Regulations. meaning stated in section 1.148-1(b) of the Regulations. 1.148-1(b) of the Regulations. on which such obligations of the City are first delivered against payment therefor. -1(b) of the Regulations. 1.148-1(b) of the Regulations. tion 1.148-3 of the Regulations. the Series 2016 Bonds issued pursuant to sections 141 through 150 of the Code. Any reference to a section of the Regulations shall also refer to any successor provision to such section hereafter promulgated by the Internal Revenue Service pursuant to sections 141 through 150 of the Code and applicable to the Bonds. 14 HOU:3622910.1 (1)any Investment shall be computed in accordance with section 1.148-5 of the Regulations, and (2)the Bonds shall be computed in accordance with section 1.148-4 of the Regulations. (b)Not to Cause Interest to Become Taxable. The City shall not use, permit the use of or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which, if made or omitted, respectively, would cause the interest on any Bonds to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City shall have received a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. (c)No Private Use or Private Payments. Except as permitted by section 141 of the Code and the regulations and rulings thereunder, the City shall, at all times prior to the last stated maturity of the Bonds, (1)exclusively own, operate, and possess all property the acquisition, construction, or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds (including property financed or refinanced with Gross Proceeds of the Refunded Bonds) and not use or permit the use of such Gross Proceeds or any property acquired, constructed, or improved with such Gross Proceeds in any activity carried on by any person or entity other than a state or local government, unless such use is solely as a member of the general public, or (2)not directly or indirectly impose or accept any charge or other payment for use of Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds (including property financed or refinanced with Gross Proceeds of the Refunded Bonds) other than taxes of general application and interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d)No Private Loan. Except to the extent permitted by section 141 of the Code and the regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, Gross Proceeds are considered to property acquired, constructed or improved with Gross Proceeds (including property financed or refinanced with Gross Proceeds of the 15 HOU:3622910.1 Refunded Bonds) is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes, (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output, or similar contract or arrangement, or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or such property are otherwise transferred in a transaction which is the economic equivalent of a loan. (e)Not to Invest at Higher Yield. Except to the extent permitted by section 148 of the Code and the regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the final stated maturity or final payment of the Bonds, directly or indirectly invest Gross Proceeds of such Bonds in any Investment (or use such Gross Proceeds to replace money so invested), if as a result of such investment the Yield of all Investments allocated to such Gross Proceeds whether then held or previously disposed of, exceeds the Yield on the Bonds. (f)Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the regulations and rulings thereunder. (g)Information Report. The City shall timely file with the Secretary of the Treasury the information required by section 149I of the Code with respect to the Bonds on such forms and in such place as such Secretary may prescribe. (h)Payment of Rebate Amount. Except to the extent otherwise provided in section 148(f) of the Code and the regulations and rulings thereunder, the City shall: (1)account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of such accounting for at least six years after the final Computation Date. The City may, however, to the extent permitted by law, commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of such Gross Proceeds and the obligations acquired therewith, (2)calculate the Rebate Amount with respect to the Bonds, not less frequently than each Computation Date, in accordance with rules set forth in section 148(f) of the Code, section 1.148-3 of the Regulations, and the rulings thereunder. The City shall maintain a copy of such calculations for at least six years after the final Computation Date, (3)as additional consideration for the purchase of the Bonds by the initial purchaser thereof and the loan of the money represented thereby, and in order to induce such purchase by measures designed to ensure the excludability of the interest thereon from the gross income of the owners thereof for federal 16 HOU:3622910.1 income tax purposes, pay to the United States the amount described in paragraph (2) above at the times, in the installments, to the place, in the manner and accompanied by such forms or other information as is or may be required by section 148(f) of the Code and the regulations and rulings thereunder, and (4)exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and, if such error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon and any penalty required by the Regulations. (i)Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the final stated maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection (h) of this Section because such transaction results in a smaller and had the Yield of the Bonds, not been relevant to either party. (j)Not Hedge Bonds. The City did not invest more than 50 percent of the Proceeds of the original bonds refunded by the Bonds in Nonpurpose Investments having a guaranteed yield for four years or more. On the Issue Date of each series of the original bonds refunded by the Bonds, the City reasonably expected that at least 85 percent of the spendable proceeds of such bonds would be used to carry out the governmental purpose of such bonds within three years after the respective Issue Date of such bonds. Section 7.6.: Qualified Tax-Exempt Obligations. The City has determined that the - Section 265(b)(3) of the Code. With respect to such designation, the City represents the following: (i) the Bonds are a current refunding of the Refunded Obligations, (ii) the Refunded - maturity of the Bonds shall not exceed the remaining weighted average maturity of the Refunded Obligations, (iv) the amount of the Bonds does not exceed $10,000,000, and (v) the maturity date -exempt Section 7.7.: Defeasance of Refunded Obligations. The discharge and defeasance of the Refunded Obligations may be effectuated pursuant to the terms and provisions of an escrow agreement, a deposit agreement or a similar agreement, a letter of instructions or any other instrument relating to the safekeeping, investment, administration and disposition of moneys deposited to effect the defeasance of the Refunded Obligations in such form and subject to such terms and conditions as the Pricing Officer determines may be necessary or convenient to carry out the intent and purpose of this Order. The Mayor is hereby authorized to execute and deliver such Escrow Agreement on behalf of the City in multiple counterparts and the City Secretary is hereby authorized t 17 HOU:3622910.1 Section 7.8.: Redemption Prior to Maturity of Refunded Obligations. To minimize the Obligations shall be called for redemption prior to maturity in the amounts, at the dates and at the Representatives are hereby authorized and directed to take all necessary and appropriate action to give or cause to be given a notice of redemption and/or a notice of defeasance to the holders or paying agent/ registrars, as appropriate, of such obligations, and, if required, to publish such notices, all in the manner required by the documents authorizing the issuance of such Refunded Obligations. Section 7.9.: Purchase of Securities. The Authorized Representatives and the Escrow Agent are hereby authorized (a) to subscribe for, agree to purchase, and purchase securities that are permitted investments for a defeasance escrow established to defease the Refunded Obligations, and to execute any and all subscriptions, purchase agreements, commitments, letters of authorization and other documents necessary to effectuate the foregoing, and any actions heretofore taken for such purpose are hereby ratified and approved, and (b) to direct and provide for such contributions to the escrow fund as are provided in the Escrow Agreement and the Report. Section 7.10.: Related Matters. In order that the City shall satisfy in a timely manner all of its obligations under this Ordinance, the Mayor, City Secretary and all other appropriate officers, agents, representatives and employees of the City are hereby authorized and directed to take all other actions that are reasonably necessary to provide for the issuance and delivery of the Bonds, including, without limitation, executing and delivering on behalf of the City all certificates, consents, receipts, requests, notices, and other documents as may be reasonably application of funds of the City consistent with the provisions of this Ordinance. ARTICLE VIII. CONTINUING DISCLOSURE UNDERTAKING Section 8.1.: Annual Reports. The City shall provide annually to the MSRB in an electronic format prescribed by the MSRB, within six months after the end of each fiscal year, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 7.3 of this Ordinance, being the financial information and operating data described in the Offic statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Appendix B to the Official Statement and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not so provided, then the City shall provide audited financial statements for the applicable fiscal year to the MSRB, when and if audited financial statements become available. 18 HOU:3622910.1 If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. Section 8.2.: Certain Event Notices. The City shall notify the MSRB, in a timely manner not to exceed ten (10) business days, of any of the following events with respect to the Bonds or the City: (a)Principal and interest payment delinquencies; (b)Non-payment related defaults, if material; (c)Unscheduled draws on debt service reserves reflecting financial difficulties; (d)Unscheduled draws on credit enhancements reflecting financial difficulties; (e)Substitution of credit or liquidity providers, or their failure to perform; (f)Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (g)Modifications to rights of holders of the Bonds, if material; (h)Bond calls, if material, and tender offers; (i)Defeasances; (j)Release, substitution, or sale of property securing repayment of the Bonds, if material; (k)Rating changes; (l)Bankruptcy, insolvency, receivership or similar event of the City; 19 HOU:3622910.1 (m)The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (n)Appointment of a successor or additional Paying Agent/Registrar or the change of name of Paying Agent/Registrar, if material. proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if jurisdiction has been assumed by leaving Council and officials or officers of the City in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall notify the MSRB in an electronic format prescribed by the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with Section 8.1 of this Ordinance by the time required by such Section. Section 8.3.: Limitations, Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Article for so long as, but only for so long as, except that the City in any event will give the notice required by Section 8.2 of any Bond calls and defe The provisions of this Article are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Article, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Article and does not hereby undertake to provide financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Article or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH 20 HOU:3622910.1 BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Article shall constitute a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. Nothing in this Article is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Article may be amended by the City from time to time to adapt the changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Article, as so amended, would have permitted an underwriter to purchase or sell the Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the holder and beneficial owners of the Bonds. If the City so amends the provisions of this Article, it shall include with any amended financial information or operating data next provided in accordance with Section 8.1 an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. The City may also amend or repeal the provisions of this Article if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Article in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds. Section 8.4.: Definitions. As used in this Article, the following terms have the meanings ascribed to such terms below: -12, as amended from time to time. ARTICLE IX. MISCELLANEOUS 21 HOU:3622910.1 Section 9.1.: Defeasance. The City may defease the provisions of this Ordinance and discharge its obligations to the Registered Owners of any or all of the Bonds to pay the principal of and interest thereon in any manner now or hereafter permitted by law, including by depositing with the Paying Agent/Registrar or with the Comptroller either: (a)cash in an amount equal to the principal amount of such Bonds plus interest thereon to the date of maturity or redemption; or (b)pursuant to an escrow or trust agreement, cash and/or (i) direct noncallable obligations of United States of America, including obligations that are unconditionally guaranteed by the United States of America; (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; or (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, which, in the case of (i), (ii) or (iii), may be in book-entry form, and the principal of and interest on which will, when due or redeemable at the option of the holder, without further investment or reinvestment of either the principal amount thereof or the interest earnings thereon, provide money in an amount which, together with other moneys, if any, held in such escrow at the same time and available for such purpose, shall be sufficient to provide for the timely payment of the principal of and interest thereon to the date of maturity or earlier redemption; provided, however, that if any of the Bonds are to be redeemed prior to their respective dates of maturity, provision shall have been made for giving notice of redemption as provided in this Ordinance. Upon such deposit, such Bonds shall no longer be regarded to be Outstanding or unpaid. Any surplus amounts not required to accomplish such defeasance shall be returned to the City. Section 9.2.: Application of Chapter 1208, Government Code. Chapter 1208, Government Code, applies to the issuance of the Bonds and the pledge of the taxes granted by the City under Section 5.1 of this Ordinance, and such pledge is therefore valid, effective and perfected. If Texas law is amended at any time while the Bonds are outstanding and unpaid such that the pledge of the taxes granted by the City under Section 5.1 of this Ordinance is to be subject to the filing requirements of Chapter 9, Business & Commerce Code, then in order to preserve to the Registered Owners of the Bonds the perfection of the security interest in said pledge, the City agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. Section 9.3.: Ordinance a Contract Amendments. This Ordinance shall constitute a contract with the Registered Owners from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted 22 HOU:3622910.1 in this Section. The City may, without the consent of or notice to any Registered Owners, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Registered Owners, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Registered Owners who own in the aggregate 51% of the principal amount of the Bond then Outstanding, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Registered Owners of Outstanding Bonds, no such amendment, addition, or rescission shall (i) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof, the redemption price, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on the Bonds, (ii) give any preference to any Bond over any other Bond, or (iii) reduce the aggregate principal amount of Bonds required to be held by Registered Owners for consent to any such amendment, addition, or rescission. Section 9.4.: Legal Holidays. In any case where the date interest accrues and becomes payable on the Bonds or principal of the Bonds matures or the date fixed for redemption of any Bonds or a Record Date shall be in the City a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized by law to close, then payment of interest or principal need not be made on such date, or the Record Date shall not occur on such date, but payment may be made or the Record Date shall occur on the next succeeding day which is not in the City a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized by law to close with the same force and effect as if (i) made on the date of maturity or the date fixed for redemption and no interest shall accrue for the period from the date of maturity or redemption to the date of actual payment or (ii) the Record Date had occurred on the fifteenth day of that calendar month. Section 9.5.: No Recourse Against City Officials. No recourse shall be had for the payment of principal of or interest on any Bonds or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Bonds. Section 9.6.: Power to Revise Form of Documents. Notwithstanding any other provision of this Ordinance, the Mayor is hereby authorized to make or approve such revisions, additions, deletions, and variations to this Ordinance and in the form of the documents attached hereto as exhibits as, in the judgment of the Mayor, and in the opinion of Bond Counsel to the City, may be necessary or convenient to carry out or assist in carrying out the purposes of this Ordinance, or as may be required for approval of the Bonds by the Attorney General of Texas; provided, however, that any changes to such documents resulting in substantive amendments to the terms and conditions of the Bonds or such documents shall be subject to the prior approval of the City Council. Section 9.7.: Further Proceedings. The Mayor, City Secretary and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the terms of this Ordinance. Section 9.8.: Severability. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or 23 HOU:3622910.1 unenforceability of such Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 9.9.: Open Meeting. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at City Hall for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 9.10.: Repealer. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Section 9.11.: Effective Date. This Ordinance shall be in force and effect from and after its passage on the date shown below. \[The remainder of this page is intentionally left blank.\] 24 HOU:3622910.1 PASSED AND ADOPTED this January 25, 2016. CITY OF LA PORTE, TEXAS Mayor ATTEST: City Secretary (SEAL) Schedules and Exhibits: Schedule 1 Schedule of Refunding Candidates Exhibit A S-1 HOU:3622910.1 SCHEDULE 1 SCHEDULE OF REFUNDING CANDIDATES Certificates of Obligation, Series 2007 SCHEDULE 1 - Page 1 HOU:3622910.1 EXHIBIT A FORM OF CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016 the \[City Manager and Finance Director\] of the City of La Porte, Texas (t the authorization contained in an ordinance of the City Council, acting as the governing body of captioned series of bonds and delegating to the undersigned the authority to agree to and stipulate certain terms and provisions thereof, all of which are set forth herein. assigned to them in the Ordinance. 1. Principal Amount, Maturity Amount, Numbers, Interest Rates and Maturities. The Bonds shall be dated ____________, 2016, but shall bear interest from the Issuance Date. The Bonds shall be issued in the total authorized principal amount of $_____________ \[consisting of $________ issued as serial bonds and The Bonds shall mature on March 15 in each of the years and in the amounts set out in the following schedule: Bond Number Maturity Principal Amount Interest Rate 2. Redemption. (a) Optional. The Bonds maturing on and after March 15, 20__ are subject to optional redemption, in whole or, from time to time, in part on any date on or after March 15, 20__ at a redemption price of par plus accrued interest. A-1 HOU:3622910.1 (b) Mandatory. The Bonds maturing in the year _____ will be issued as term bonds and shall be subject to the following mandatory redemption requirements: TERM BONDS MATURING MARCH 15, ____ Mandatory Redemption Date Principal Redemption (March 15) Amount Price 100% 100 100 100 To the extent that such Term Bonds have been previously called for redemption or purchased and retired in part and otherwise than from scheduled mandatory redemption payments, future mandatory redemption payments may be reduced by the principal amount of such Term Bonds so redeemed or purchased. In lieu of mandatorily redeeming the Term Bonds, the City reserves the right to purchase for cancellation Term Bonds of the same maturity at a price no greater than the applicable redemption price of such Term Bonds. The Paying Agent/Registrar will select by lot the specific Term Bonds (or with respect to Term Bonds having a denomination in excess of $5,000, each $5,000 portion thereof) to be redeemed by mandatory redemption. The principal amount of Term Bonds required to be redeemed on any redemption date pursuant to the foregoing mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Bonds having the same maturity which have been purchased or redeemed by the City as follows, at least 45 days prior to the mandatory redemption date: (i) if the City directs the Paying Agent to purchase Bonds with money in the debt service fund for the Bonds (at a price not greater than par plus accrued interest to the date of purchase), then a credit of 100% of the principal amount of such Bonds purchased will be made against the next mandatory redemption installment due, or (ii) if the City purchases or redeems Bonds with other available moneys, then the principal amount of such Bonds will be credited against future mandatory redemption installments in any order, and in any annual amount, that the City may direct. A-2 HOU:3622910.1 3. Purchase Price. The sale of the Bonds is authorized pursuant to the form of Bond Purchase Agreement approved in the Ordinance at the following price: PRINCIPAL AMOUNT $_____________ \[Plus/Less\] Original Issue \[Premium/Discount\] _____________ PURCHASE PRICE $_____________ It is hereby found and declared that the sale of the Bonds pursuant to the Bond Purchase Agreement at such price is on the best terms and at the best prices reasonably obtainable by the City. 5. Escrow Agreement and Deposit. The Escrow Agreement attached as Attachment A hereto is hereby approved. Pursuant to Sections 7.6 and 7.8 of the Ordinance, $______________ from the proceeds of the Bonds shall be deposited into the Escrow Fund created pursuant to the Escrow Agreement and applied to purchase the escrowed securities. 6. Form of Bond. Pursuant to Article IV of the Ordinance, the Form of Bond as set forth in Attachment B hereto is hereby approved and supersedes the Form of Bond set forth in the Ordinance. 7. The Refunded Obligations shall be those bonds identified in Attachment C hereto. 8. Pursuant to Section 8.1 of the Ordinance, the City shall provide annually to the MSRB, (A) within six months after the end of each fiscal year of the City, financial information and operating data with respect to the City of the general type included in the final Official Statement, being the financial information and operating data described in the Official Statement in Appendix A (Tables 1 and 3- 11), and (B) if not provided as part such financial information and operating data, audited financial statements of the City, when and if available. 9. Pursuant to Section 3.4 of the Ordinance, we hereby further find and determine that: a. The net effective interest rate on the Bonds does not exceed 4.00%; b. The aggregate principal amount of the Bonds does not exceed the maximum amount authorized in Section 3.1 of the Ordinance and, when added to any net premium, is equal to an amount sufficient to provide for the costs and expenses of refunding the Refunded Obligations and the c. The net present value savings to the City is at least 7.00% of the principal amount of the Refunded Obligations, as shown on Attachment D hereto; and d. The final maturity date of the Bonds does not exceed March 15, 2029. A-3 HOU:3622910.1 10. The undersigned hereby find, determine and declare, that in accordance with the requ and satisfies the terms and provisions of the Ordinance in accordance with the delegation contained therein. <EXECUTION PAGE FOLLOWS> A-4 HOU:3622910.1 WITNESS MY HAND this __________________, 2016. \[City Manager\] City or La Porte, Texas \[Finance Director\] City or La Porte, Texas A-5 HOU:3622910.1 ESCROW AGREEMENT A-6 HOU:3622910.1 FORM OF BOND UNITED STATES OF AMERICA STATE OF TEXAS CITY OF LA PORTE, TEXAS GENERAL OBLIGATION REFUNDING BOND, SERIES 2016 NUMBER DENOMINATION 1 R-__ $______________ REGISTERED REGISTERED 222 INTEREST RATE: ISSUANCE DATE: MATURITY DATE: CUSIP: March 15, ____ DATED DATE: REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS THE CITY OF LA PORTE, TEXAS, a home rule municipality of the State of Texas (the its registered assigns, on the maturity date specified above (or on earlier redemption as herein provided), upon presentation and surrender of this Bond at the principal payment office of principal amount identified above (or so much thereof as shall not have been paid or deemed to have been paid upon prior redemption) payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due to the United States of America, and to pay interest thereon at the rate shown above, calculated on a basis of a 360-day year composed of twelve 30-day months, from the later of the Issuance Date identified above or the most recent interest payment date to which interest has 34 been paid or duly provided for. Interest on this Bond is payable on _________, 20__, and each 1 Initial Bond shall be numbered T-1. 2 Omitted from initial Bond. 3 The first sentence of the initial Bond shall read as follows: received, hereby promises to pay to the Registered Owner identified above or its registered assigns, on March 15 of each of the years and in the principal amounts set forth in the following schedule: \[Insert information regarding e\] upon presentation and surrender of this Bond at the principal payment office of ___________________________________________, or A-7 HOU:3622910.1 March 15 and September 15 thereafter until maturity or earlier redemption of this Bond, by check sent by United States mail, first class, postage prepaid, by the Paying Agent/Registrar to the Registered Owner of record as of the close of business on the last business day of the calendar month immediately preceding the applicable interest payment date, as shown on the registration books kept by the Paying Agent/Registrar. Any accrued interest payable at maturity or earlier redemption shall be paid upon presentation and surrender of this Bond at the office of the Paying Agent/Registrar. THIS BOND IS ONE OF A DULY AUTHORIZED SERIES OF BONDS (the 4 in the aggregate principal amount of $_________issued pursuant to an ordinance adopted by funds to refund certain outstanding obligations of the Ci and pursuant to the authority of Chapter 1207, Texas Government Code, as amended, and the Bonds and refunding the Refunded Obligations. THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Bond is authenticated by the Paying Agent/Registrar by due 5 execution of the authentication certificate endorsed hereon. THE CITY RESERVES THE RIGHT, at its option, to redeem, prior to their maturity, 44 Bonds maturing on and after March 15, 20__, in whole or in part, on March 15, 20__, or any date thereafter, at par plus accrued interest to the date fixed for redemption. 4 THE BONDS maturing on March 15, 20__ (the "Term Bonds") are subject to mandatory sinking fund redemption in the following amounts (subject to reduction as hereinafter provided), on the following dates, in each case at a redemption price equal to the principal amount of the Bonds or the portions thereof so called for redemption plus accrued interest to the date fixed for redemption: Mandatory Redemption Dates Principal Amounts Term Bonds Maturing March 15, 20__4 on the date of payment of such principal is legal tender for the payment of debts due to the United States of America, and to pay interest thereon at the rate shown above, calculated on a basis of a 360-day year composed of twelve 30-day months, from the later of the Issuance Date identified above or the most recent interest payment date to which interest has been paid or duly provided for. 4 5 In the initial Bond, this paragraph shall read: THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Bond is registered by the Comptroller of Public Accounts of the State of Texas by due execution of the registration certificate endorsed hereon A-8 HOU:3622910.1 THE PARTICULAR TERM BONDS to be redeemed shall be selected by the Registrar by lot or other customary random selection method, on or before February 1 of each year in which Term Bonds are to be mandatorily redeemed. The principal amount of Term Bonds to be mandatorily redeemed in each year shall be reduced by the principal amount of such Term Bonds that have been optionally redeemed on or before February 1 of such year and which have not been made the basis for a previous reduction. BONDS MAY BE REDEEMED IN PART only in integral multiples of $5,000. If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in integral multiples of $5,000. In selecting portions of Bonds for redemption, each Bond shall be treated as representing that number of Bonds of $5,000 denomination which is obtained by dividing the principal amount of such Bond by $5,000. Upon surrender of any Bond for redemption in part, the Paying Agent/Registrar, in accordance with the provisions of the Ordinance, shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered. NOTICE OF ANY SUCH REDEMPTION, identifying the Bonds or portions thereof to be redeemed, shall be sent by United States mail, first class, postage prepaid, to the Registered Owners thereof at their addresses as shown on the books of registration kept by the Paying Agent/Registrar, not less than thirty (30) days before the date fixed for such redemption. By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar for the payment of the redemption price of the Bonds called for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, the Bonds which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the purpose of being paid with the funds so provided for such payment. THIS BOND IS TRANSFERABLE only upon presentation and surrender at the office of the Paying Agent/Registrar, accompanied by an assignment duly executed by the Registered Owner or its authorized representative, subject to the terms and conditions of the Ordinance. THIS BOND IS EXCHANGEABLE at the office of the Paying Agent/Registrar for a Bond or Bonds of the same maturity and interest rate and in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of the Ordinance. THE PAYING AGENT/REGISTRAR is not required to accept for transfer or exchange any Bond called for redemption, in whole or in part, during the forty-five (45) day period immediately prior to the date fixed for redemption; provided, however, that such limitation shall not apply to the transfer or exchange by the Registered Owner of an unredeemed portion of a Bond called for redemption in part. THE CITY OR PAYING AGENT/REGISTRAR may require the Registered Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be A-9 HOU:3622910.1 imposed in connection with the transfer or exchange of a Bond. Any fee or charge of the Paying Agent/Registrar for a transfer or exchange shall be paid by the City. THE REGISTERED OWNER of this Bond by acceptance hereof, acknowledges and agrees to be bound by all the terms and conditions of the Ordinance. IT IS HEREBY DECLARED AND REPRESENTED that this Bond has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, exist and to be done precedent to or in the issuance and delivery of this Bond have been performed, exist and have been done in accordance with law; that the Bonds do not exceed any constitutional or statutory limitation; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied, within the limits prescribed by law, against all taxable property in the City and have been irrevocably pledged for such payment. REFERENCE IS HEREBY MADE TO THE ORDINANCE, a copy of which is filed with the Paying Agent/Registrar, for the full provisions thereof, to all of which the Registered Owners of the Bonds assent by acceptance of the Bonds. * * * * IN WITNESS WHEREOF, the City has caused its corporate seal to be impressed or placed in facsimile hereon and this Bond to be signed by the Mayor and countersigned by the City Secretary by their manual, lithographed or printed facsimile signatures. CITY OF LA PORTE, TEXAS Mayor (SEAL) COUNTERSIGNED: City Secretary * * * * to each of the Bonds initially delivered: A-10 HOU:3622910.1 OFFICE OF THE COMPTROLLER § OF PUBLIC ACCOUNTS § REGISTER NO._______________ THE STATE OF TEXAS § I hereby certify that this bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL OF OFFICE this ________________. Comptroller of Public Accounts (SEAL) of the State of Texas * * * * FORM OF PAYING The following form of authentication certificate shall be printed on the face of each of the Bonds other than those initially delivered: AUTHENTICATION CERTIFICATE This Bond is one of the Bonds described in and delivered pursuant to the within- mentioned Ordinance; and, except for the Bonds initially delivered, this Bond has been issued in exchange for or replacement of a Bond, Bonds, or a portion of a Bond or Bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. \[________________________________________\], as Paying Agent/Registrar By: Authorized Signature: Date of Authentication: * * * * A-11 HOU:3622910.1 FORM OF ASSIGNMENT The following form of assignment shall be printed on the back of each of the Bonds: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ______________________________________________________________________________ (Please print or type name, address, and zip code of Transferee) ______________________________________________________________________________ (Please insert Social Security or Taxpayer Identification Number of Transferee) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints _______________________________________ attorney to transfer such bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature Guaranteed: Registered Owner NOTICE: The signature above must correspond to the name of the Registered Owner as shown on the face of this bond in NOTICE: Signature must be guaranteed by a every particular, without any alteration, member firm of the New York Stock Exchange enlargement or change whatsoever. or a commercial bank or trust company. * * * * A-12 HOU:3622910.1 ATTACH DESCRIPTION OF REFUNDED OBLIGATIONS HOU:3622910.1 PRESENT VALUE SAVINGS CALCULATION HOU:3622910.1 REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: General FundGeneral Fund Rosalyn EptingRosalyn EptingSource of Funds:Source of Funds: Requested By:Requested By: 001.8081.551.5007001.8081.551.5007 Parks & RecreationParks & RecreationAccount Number:Account Number: Department:Department: $230,000.00$230,000.00 Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Amount Other: Requested:Requested: AttachmentsAttachments : : Budgeted Item:Budgeted Item:YESYESNONO 1. Lifeguard Services Bid Tabulation Lifeguard Services Bid Tabulation SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS During the Budget Workshop, Council discussed the budget for the lifeguarding contract at the City During the Budget Workshop, Council discussed the budget for the lifeguarding contract at the City Pools.  Staff was instructed to determine how much it would cost to run all lifeguard operations in Pools.  Staff was instructed to determine how much it would cost to run all lifeguard operations in house.  Staff determined that the City could run lifeguard operations for a total of $230,000.  Staff also house.  Staff determined that the City could run lifeguard operations for a total of $230,000.  Staff also reported that bids would still be advertised to determine if the services could be contracted out at a reported that bids would still be advertised to determine if the services could be contracted out at a lower amount. lower amount.  Staff went out to bid for the 2016 summer pool season lifeguard services.  The City received bids from Staff went out to bid for the 2016 summer pool season lifeguard services.  The City received bids from three companies.  The lowest bidder is Pool Management Inc. (PMI) with a bid of $285,750.  The bid three companies.  The lowest bidder is Pool Management Inc. (PMI) with a bid of $285,750.  The bid tabulation is attached as an exhibit. tabulation is attached as an exhibit.  If Council approves the bid, there would be an increase of $55,750 to the budget, which would require a If Council approves the bid, there would be an increase of $55,750 to the budget, which would require a If Council approves the bid, there would be an increase of $55,750 to the budget, which would require a If Council approves the bid, there would be an increase of $55,750 to the budget, which would require a budget amendment.  PMI offers some additional items in the bid that the City was not going to provide if budget amendment.  PMI offers some additional items in the bid that the City was not going to provide if pools were run in house.  Those items are programming of classes and additional marketing.  PMI pools were run in house.  Those items are programming of classes and additional marketing.  PMI would have a full time Program Director that would offer a programming plan for the pools.  Some of the would have a full time Program Director that would offer a programming plan for the pools.  Some of the possible programs offered would be swimming lessons, aerobics, CPR & First Aid, kayak instruction, possible programs offered would be swimming lessons, aerobics, CPR & First Aid, kayak instruction, etc.  PMI is willing to pay the City 75% of the net profit for all programming.  The programs PMI offer etc.  PMI is willing to pay the City 75% of the net profit for all programming.  The programs PMI offer would be an added benefit to the community.  Staff asked PMI what the savings would be if we removed would be an added benefit to the community.  Staff asked PMI what the savings would be if we removed the services of the Program Director.  PMIthe services of the Program Director.  PMI’’s response was as follows, s response was as follows, ““The Program Director is an The Program Director is an integral person in our senior management team. Given the level of programs you may elect to have, this integral person in our senior management team. Given the level of programs you may elect to have, this individual is there to serve you. There is no extra cost to have them, nor is there a discount if you do not. individual is there to serve you. There is no extra cost to have them, nor is there a discount if you do not. Should your city elect to have PMI teach lessons for example, the regional Program Director is there to Should your city elect to have PMI teach lessons for example, the regional Program Director is there to assist.”  There are pros and cons to running lifeguard services in house or contractually.  Some of the main pros There are pros and cons to running lifeguard services in house or contractually.  Some of the main pros and cons are listed below.and cons are listed below. When lifeguards are all employees of the City, they are under complete control of the City in When lifeguards are all employees of the City, they are under complete control of the City in terms of scheduling and discipline.  With contracted services the company controls all discipline, terms of scheduling and discipline.  With contracted services the company controls all discipline, the City only tell the Company how many guards are required and at what time.the City only tell the Company how many guards are required and at what time. The contractor provides the City a certificate of insurance and has liability coverage if something The contractor provides the City a certificate of insurance and has liability coverage if something were to occur.  This provides one additional layer of liability protection.were to occur.  This provides one additional layer of liability protection. In House operations take a lot of time for training.  This takes management staff away from other In House operations take a lot of time for training.  This takes management staff away from other regular duties during the busiest season of the year.  Not to mention, the HR Department time that regular duties during the busiest season of the year.  Not to mention, the HR Department time that is required to process approximately 50 employees with background checks, drug screens, and is required to process approximately 50 employees with background checks, drug screens, and orientations.orientations. Retention of lifeguards in house is a recurring issue.  With contracting out, the contractor usually Retention of lifeguards in house is a recurring issue.  With contracting out, the contractor usually has a bigger lifeguard base and is able to fill shifts as summer begins to come to an end.has a bigger lifeguard base and is able to fill shifts as summer begins to come to an end. If the City were to contract out, the Contractor would be providing classes that the City was not If the City were to contract out, the Contractor would be providing classes that the City was not providing.  This would become and extra revenue stream and service to the community.providing.  This would become and extra revenue stream and service to the community. Action Required of Council:Action Required of Council: 1.Consider approval or other action of a contract with Pool Management Inc. and include the budget Consider approval or other action of a contract with Pool Management Inc. and include the budget increase of $55,750 in the upcoming budget amendment; or increase of $55,750 in the upcoming budget amendment; or  2.Direct staff to begin the recruitment process for lifeguard services to be managed in house.Direct staff to begin the recruitment process for lifeguard services to be managed in house. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate 1.78 7.78 3.21.21.6 6 C USA Management $322,886.60 23.94 1.78 8.38 6.6 3.21.81.6 B 1.78 7.78 3.21.41.4 6 A Final Evaluation Summary for RFP #16503 Lifeguards 6.48.4 3.21.61.6 2 C $285,750.00 PMI 24.6 1.4 2.41.2 5 2 7 B 1.8 7.29.2 3.61.8 2 A 1.64 3.64 200 2 C Aquatic Management $349,172.00 1.64 4.249.52 2.6 2.40.2 0 B 1.64 1.64 0.8 00 A Weight 40%20%20%20% FINAL Results (including cost) Sub Total (before Cost) Ability to meet specifications Qualifications & Experience References Criteria Cost REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Fund 051Fund 051 Traci LeachTraci LeachSource of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: AdministrationAdministration Department:Department: 825,000825,000 Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: $25,000$25,000 Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. Proposed Designs Proposed Designs SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS In the Fiscal 2016 budget, funding was included to address the repainting of two of the City's elevated In the Fiscal 2016 budget, funding was included to address the repainting of two of the City's elevated water tanks-- one at Fairmont Park and a second at 3rd and Main Street.  The Fairmont tank will have the one at Fairmont Park and a second at 3rd and Main Street.  The Fairmont tank will have the interior and exterior stripped and reinterior and exterior stripped and re--coated.  The exterior only of the Main Street tank is scheduled for recoated.  The exterior only of the Main Street tank is scheduled for re- painting.  As part of this project, the City intends to paint custom artwork on these tanks.  The tanks have great As part of this project, the City intends to paint custom artwork on these tanks.  The tanks have great visibility from major thoroughfares and offer an tremendous opportunity to continue to market and brand visibility from major thoroughfares and offer an tremendous opportunity to continue to market and brand the community as a familythe community as a family--oriented town.oriented town. The project budget includes $25,000 for the exterior custom artwork.  Staff has created a number of The project budget includes $25,000 for the exterior custom artwork.  Staff has created a number of options for Council consideration.  At this time, staff is requesting Council direction as to which, if any, of options for Council consideration.  At this time, staff is requesting Council direction as to which, if any, of options for Council consideration.  At this time, staff is requesting Council direction as to which, if any, of options for Council consideration.  At this time, staff is requesting Council direction as to which, if any, of the attached designs should be painted on these tanks.the attached designs should be painted on these tanks. Action Required of Council:Action Required of Council: Discussion and possible action regarding proposed artwork/design options for the Main Street and Discussion and possible action regarding proposed artwork/design options for the Main Street and Fairmont elevated water tanks.Fairmont elevated water tanks. Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 25, 2016January 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: NANA Corby D. AlexanderCorby D. AlexanderSource of Funds:Source of Funds: Requested By:Requested By: NANA AdministrationAdministrationAccount Number:Account Number: Department:Department: NANA Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: NANA Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1. List of meetings required to be posted List of meetings required to be posted SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The purpose of this agenda item is to obtain Council direction regarding TexasThe purpose of this agenda item is to obtain Council direction regarding Texas’’much anticipated much anticipated ““open carry law,”which became effective on January 1, 2016.  The law modifies the former concealed which became effective on January 1, 2016.  The law modifies the former concealed handgun license law that had been in place since 1995.  The open carry law eliminates the handgun license law that had been in place since 1995.  The open carry law eliminates the concealed/open carry distinction, and it creates a concealed/open carry distinction, and it creates a ““license to carry a handgun.license to carry a handgun.””   Beginning on January 1, 2016, a person with a current concealed handgun license, or a person who Beginning on January 1, 2016, a person with a current concealed handgun license, or a person who obtains the new obtains the new ““license to carry a handgun,license to carry a handgun,””may carry a handgun in a concealed manner or openly in may carry a handgun in a concealed manner or openly in a belt or shoulder holster. a belt or shoulder holster.  The rules related to where and when a license holder may openly carry are essentially identical to where The rules related to where and when a license holder may openly carry are essentially identical to where and when a concealed handgun license holder has been able to carry for 20 years.  However, the and when a concealed handgun license holder has been able to carry for 20 years.  However, the and when a concealed handgun license holder has been able to carry for 20 years.  However, the and when a concealed handgun license holder has been able to carry for 20 years.  However, the difference is that no one knew when a person was concealed carrying, but some are uncomfortable difference is that no one knew when a person was concealed carrying, but some are uncomfortable with the idea of a holstered handgun being displayed in public. with the idea of a holstered handgun being displayed in public.  Beyond the three places listed below, a city council has essentially no authority to prohibit a license Beyond the three places listed below, a city council has essentially no authority to prohibit a license holder from carrying in areas that are otherwise open to the public.  Any attempt to do so can lead to the holder from carrying in areas that are otherwise open to the public.  Any attempt to do so can lead to the attorney general bringing a civil action against the city for monetary penalties.  State law prohibits the attorney general bringing a civil action against the city for monetary penalties.  State law prohibits the carrying of firearms in certain placescarrying of firearms in certain places-- polling locations, a court, or in areas used to conduct a polling locations, a court, or in areas used to conduct a government meeting.  government meeting.   The law also expressly prohibits a handgun license holder from carrying in a government meeting, if the The law also expressly prohibits a handgun license holder from carrying in a government meeting, if the governmental body gives notice that doing so is prohibited. This prohibition would only apply to meetings governmental body gives notice that doing so is prohibited. This prohibition would only apply to meetings subject to the Texas Open Meetings Act.  Should the Council desire to prohibit a license holder from subject to the Texas Open Meetings Act.  Should the Council desire to prohibit a license holder from carrying in government meetings, signs complying with state specifications will be posted prominently at carrying in government meetings, signs complying with state specifications will be posted prominently at the entry of such meeting location prior to the posted meeting. the entry of such meeting location prior to the posted meeting.  Action Required of Council:Action Required of Council: Discussion or other action regarding provision of the Texas Open Carry law governing government Discussion or other action regarding provision of the Texas Open Carry law governing government meetings.  Approved for City Council AgendaApproved for City Council Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate MEETINGS REQUIRED TO BE POSTED City of La Porte Tax Reinvestment Zone Number One Building Code Appeals Board Civil Service Commission Fire Code Review Committee La Porte Development Corporation Board La Porte Fire Control, Prevention & Emergency Medical Services District La Porte Redevelopment Authority Planning & Zoning Commission Zoning Board of Adjustments tğŭĻ Њ ƚŅ Њ Council Agenda Item Council Agenda Item January 25, 2016 January 25, 2016 9.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS La Porte Development Corporation Board Meeting, Monday, February 8, 2016La Porte Development Corporation Board Meeting, Monday, February 8, 2016 • City Council Meeting, Monday, February 8, 2016City Council Meeting, Monday, February 8, 2016 • Planning and Zoning Commission Meeting, Thursday, February 18, 2016Planning and Zoning Commission Meeting, Thursday, February 18, 2016 • City Council Meeting, Monday, February 22, 2016City Council Meeting, Monday, February 22, 2016 • Zoning Board of Adjustment Meeting, Thursday, February 25, 2016Zoning Board of Adjustment Meeting, Thursday, February 25, 2016 • regarding matters appearing on the agenda; recognition of community regarding matters appearing on the agenda; recognition of community 10.COUNCIL COMMENTSCOUNCIL COMMENTS members, city employees, and upcoming events; inquiry of staff regarding specific factual information members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies or existing policies or existing policies or existing policies ––Councilmembers Engelken, Earp, Clausen, J. Martin, K. Martin, Kaminski, Councilmembers Engelken, Earp, Clausen, J. Martin, K. Martin, Kaminski, Councilmembers Engelken, Earp, Clausen, J. Martin, K. Martin, Kaminski, Councilmembers Engelken, Earp, Clausen, J. Martin, K. Martin, Kaminski, Zemanek,  Leonard and Mayor RigbyZemanek,  Leonard and Mayor Rigby   11.EXECUTIVE SESSIONEXECUTIVE SESSION The City Council reserves the right to meet in closed session on any agenda item should the need The City Council reserves the right to meet in closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code, in accordance with the authority contained in:Code, in accordance with the authority contained in: ––For the purpose of deliberating the purchase, For the purpose of deliberating the purchase, Texas Government Code, Section 551.072Texas Government Code, Section 551.072 exchange, lease or value of real property: Meet with City Manager and City Attorney to discuss a Joint exchange, lease or value of real property: Meet with City Manager and City Attorney to discuss a Joint Ordinance and Boundary Adjustment Agreement and Joint Ordinance and Revenue Sharing  Ordinance and Boundary Adjustment Agreement and Joint Ordinance and Revenue Sharing  Agreement with the City of Morgan's Point regarding a 4.42 acre tract of land currently within the City Agreement with the City of Morgan's Point regarding a 4.42 acre tract of land currently within the City of La Porte's corporate boundary and proposed to be annexed with the City of Morgan's Point of La Porte's corporate boundary and proposed to be annexed with the City of Morgan's Point corporate boundary.corporate boundary. ––Consultations with Attorney: Meet with City Consultations with Attorney: Meet with City Texas Government Code, Section 551.071(2)Texas Government Code, Section 551.071(2) Attorney to discuss Joint Ordinance and Boundary Adjustment Agreement and Joint Ordinance and Attorney to discuss Joint Ordinance and Boundary Adjustment Agreement and Joint Ordinance and Revenue Sharing Agreement with the City of Morgan's Point.Revenue Sharing Agreement with the City of Morgan's Point. into regular session and consider action, if any, on item(s) discussed in executive into regular session and consider action, if any, on item(s) discussed in executive 12.RECONVENERECONVENE session. session. 13.ADJOURNADJOURN ****************************************************************** ******************************************************************