HomeMy WebLinkAbout1978-07-19 Regular Meeting• •
• MINUTES - REGULAR MEETING
OF THE
LA PORTE CITY COMMISSION, LA PORTE, TEXAS
JULY 19, 1978
7:00 P.M.
MEMBERS OF THE COMMISSION PRESENT: Mayor J. J. Meza;
Commissioners John Tomerlin, I. J. Kibodeaux and Virginia Cline.
MEMBERS OF THE COMMI'S'SION ABSENT: Commissioner Tom Simons,
hospitalized.
OTHER CITY OFFICIALS PRESENT: J. R. Hudgens, City Administrator;
Margie Goyen, City Clerk; H. F. Freeman, Chief of Police,
Joe Sease, Fire Chief; Stan Sherwood, Director of Parks & Recreation;
• Gerard Nutting, Public [^]orks Director; D. R. McLaughlin, Fire Marshal;
Paul Hickenbottom, Fire Inspector; Al Steckman, Inspector; Knox
Askins, City Attorney.
OTHER CITY OFFICIALS ABSENT: None.
OTHERS• Reverend [~7alter P. Hinkle and Mrs. Hinkle, Mrs. I. J.
Kibodeaux, various citizens.
PRESIDING: J. J. Meza, Mayor.
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1. CALL TO ORDER - Mayor Meza called the meeting to order.
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2. INVOCATION - The invocation was given by the Reverend Walter
P. Hinkle.
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Regular Meeting 7/19/78 2
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3. APPROVAL OF MINUTES - REGULAR MEETING - JULY 5, 1978 - Motion
by Commissioner Tomerlin, seconded by Commissioner Kibodeaux
to approve the minutes of the regular meeting held July 5, 1978,
as distributed. Motion carried by the following vote:
AYES: Commissioners Tomerlin, Kibodeaux and Cline.
NAYS: None.
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4. ACCEPT BIDS - TWO (2) BUSH HOGS FOR PUBLIC WORKS DEPARTMENT -
The following bids were opened and read aloud:
COMPANY GRAND TOTAL
A & A TRACTOR EQUIPMENT
4937 Spencer Highway
Pasadena, Texas 77503 $1,019.00 ea. $2,038.00
LANSDOWNE-MOODY CO., INC.
• 8445 1-10 East Freeway
Houston, Texas 77029 $ 960.00 ea. $1,920.00
EAGLE TRACTOR, INC.
P. O. Box 728
Eagle Lake, Texas 77434 $ 799.00 ea. $1,598.00
JIM BALL INTERNATIONAL, INC.
3300 North Main Street
Baytown, Texas 77520 $1,145.30 ea. $2,290.60
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The City Administrator recommended that the Commission consider
awarding the bid to the lowest bidder, subject to meeting all
specifications, because of the need for the equipment.
Motion by Commissioner Cline, seconded by Commissioner Tomerlin
to accept the bids for tabulation and upon the recommendation
of the City Administrator, award the bid to the lowest bidder
subject to meeting all specifications. The lowest bidder being
Eagle Tractor, Inc., in the amount of $1,598.00. Motion carried
by the following vote:
AYES: Commissioners Tomerlin, Kibodeaux, and Cline.
NAYS: None.
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• Regular Meeting 7/19/78 3
5. CONSIDER DECLARING BY ACTION OR REZONING OF LOTS 1, 2, AND
3, BLOCK 30, BEACH PARK, 535 BAYSHORE DRIVE - COMMERCIAL OR
RESIDENTIAL - The City Administrator reiterated that a request
for on premise license had been received from a prospective
buyer of this property. The question of zoning had been raised.
It was determined that several commercial establishments had
been operated at this location, but all records indicated that
this property was zoned residential.
The City Attorney was of the opinion that this property could
fall under the non-conforming use of the zoning ordinance, but
would limit the use of the property. However, it the Commission
chose, they could declare this property commercial.
Mrs. J. Tarpey, property owner, was recognized and stated that
the sale of the property was lost due to the fact that more than
30 days had lapsed. However, she would like for the Commission
to make a determination of the zoning should she wish to sell
at another time.
A brief discussion ensued. Motion by Commissioner Kibodeaux,
seconded by Commissioner Tomerlin that the Planning and Zoning
• Commission be instructed to review the whole block of Block 30,
Beach Park and on their own motion call a public hearing to
consider rezoning the block from residential to commercial
property. Motion carried by the following vote:
AYES: Commissioners Tomerlin, Kibodeaux, and Cline.
NAYS: None.
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6. CONSIDER APPROVING PROPOSED ORDINANCE NO. 1127 - ORDINANCE
AMENDING CHAPTER 4, AMBULANCES, OF CODE OF ORDINANCES -
After the proposed ordinance was read in full, motion by
Commissioner Cline, seconded by Commissioner Tomerlin to
approve Ordinance No. 1127 as read. Motion carried by the
following vote:
AYES: Commissioners Tomerlin, Kibodeaux, and Cline.
NAYS: None.
CAPTION: AN ORDINANCE AMENDING CHAPTER 4, AMBULANCES, OF
THE CODE OF ORDINANCES, REQUIRING THAT A COPY OF THE CHAUFFEUR'S
• LICENSE OF EACH DRIVER BE FILED WITH THE CITY CLERK; PROVIDING
THAT ATTENDANDTS MUST BE EIGHTEEN YEARS OF AGE OR OLDER;
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Regular Meeting 7/19/78 4
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6. CONSIDER APPROVING PROPOSED ORDINANCE N0. 1127 - ORDINANCE
AMENDING CHAPTER 4, AMBULANCES, OF CODE OF ORDINANCES (CONTINUED)
REQUIRING THAT EACH DRIVER MUST HAVE A CURRENT EMERGENCY CARE
ATTENDANT CERTIFICATE; REQUIRING THAT EACH ATTENDANT MUST HAVE
A CURRENT EMERGENCY MEDICAL TECHNICIAN CERTIFICATE; REQUIRING
THAT SUCH CERTIFICATES BE FILED WITH THE CITY CLERK; REQUIRING
THAT COMMUNICATIONS ON RADIO AIRWAYS BE BRIEF, PUNCTUAL AND
FACTUAL; PROVIDING THAT ANY PERSON VIOLATING THE TERMS OF THIS
ORDINANCE SHALL BE DEEMED GUILTY OF A MISDEMEANOR AND UPON
CONVICTION THEREOF SHALL BE FINED IN ANY SUM NOT MORE THAN TWO
HUNDRED DOLLARS ($200.00); AND PROVIDING AN EFFECTIVE DATE
HEREOF.
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7. ADMINISTRATIVE REPORTS - A. The City Administrator informed
the Commission that the Municipal Swimming Pool was closed for
repairs and that at the present time the High School Pool was
opened for public use. Hopefully the repairs will be completed
• shortly.
B. The City Administrator reporte that he had attended a meeting
with the Spenwick Place Municipal Utility District regarding
the agreement for sanitary sewage treatment. The proposed agreement
was for 70,000 gallons per day maximum. However due to the number
of residences to be serviced at this time, it will need to be
increased to 90,000 gallons per day maximum, with approval of the
Commission. The Commission had no objection.
C. 16TH STREET SANITARY SEWER LINE - The City Administrator
informed the Commission that the low bid for the 16th Street
Sanitary Sewer Line was Aerial Construction Company in the
amount of $17,984.50. It was anticipated that the work would
begin on July 31, 1978. It was stated that a permit would be
needed before boring 16th Street.
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• Regular Meeting 7/19/78
5
8. COMMISSION ACTION - Mayor Meza read the following correspondence:
A. Letter from Harris Galveston Coastal Subsidence District
regarding the surface water line and surface water plans for
our area. A copy of the letter is attached and made a part of
these minutes.
B. A letter from Turner Collie & Braden, Inc. regarding expired
project time of the Southern Pacific Grade Separation. A copy
is attached and made a part of these minutes.
C. A letter from Commissioner Tom Bass, Precinct 1, regarding
health planning activities in southeast Harris County. A copy
is attached and made a part of these minutes.
D. A Public Hearing Notice from the Texas Department of
Water Resources to be held 9:00 A.M., August 4, 1978, Room 118
Stephen F. Austin State Office Building, Austin, Texas. A copy
is attached and made a part of these minutes. The Mayor stated
that he, the Attorney and a representative of Busch Hutchison
& Associates would attend this hearing.
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9. EXECUTIVE SESSION - V.A.T.S. - ARTICLE 6252-17 - SECTION 2 -
(E), (F), AND (G) - (LEGAL, LAND ACQUISITION AND PERSONNEL) -
Motion by Commissioner Cline, seconded by Commissioner Kibodeaux
that the meeting recess for an executive session. Motion carried
by the following vote:
AYES: Commissioners Tomerlin, Kibodeaux, and Cline.
NAYS: None.
The meeting recessed at 7:30 P.M.
The meeting reconvened at 8:44 P.M.
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10. ADJOURNMENT - Motion by Commissioner Kibodeaux, seconded by
Commissioner Tomerlin that the meeting adjourn. Motion carried
by the following vote:
AYES: Commissioners Tomerlin, Kibodeaux, and Cline.
• NAYS: None.
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• Regular Meeting 7/19/78
10. ADJOURNMENT (CONTINUED)
The meeting adjourned at 8:45 P.M.
0
Margie en, City ler
Passed and Approved this
the 2nd day of August, 1978.
J. J. Meza, Mayor / ~
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Harris-Gal~Teston Coastal Subsidence District
1730 NASA ROAD I, BLDG. 2 - P.O. BOX 58847
PHONE 713/333-4939 - HOUSTON, TEXAS 77058
July 17, 1978
The Honorable John H. McCulley
Mayor of City of Morgan's Point
P.O. Box 839
La Porte, TX 77571
Dear Mayor McCulley:
The meeting at the La Porte Civic Center last Thursday afternoon was
both informative-and productive.
The surface water line to Du Pont is due to be completed by mid-December
of this year. With surface water this close, it appears feasible to
construct the La Porte water treatment plant to serve as many entities as
• possible in this critical area of subsidence.
For La Porte to begin plans for the treatment plant, it is necessary
that each interested party determine their requirements for treated
surface water and make a commitment to La Porte in order that they,
in turn, can make a commitment to the City of Houston for the area-wide
water requirements. It was agreed that each entity would contact the
La Porte City Administrator to establish a time to discuss their water
needs individually.
The City of La Porte is making every effort to crystallize surface water
plans for this area prior to the Subsidence District hearings for
renewal of water permits. These hearings will be started in October.
Consequently, it has been requested by La Porte that you contact their
office as soon as possibleo This prompt action is commendable and is
endorsed by this district.
I wish to thank all of you for your active participation and your sincere
efforts to convert to surface water.
Sincerely yours,
~r771
Ronald J. Ne'ghbors ~C/~7~
General Manager
• RJN:HLN:df
• •
• TurnerCollie~Braden Inc.
July 17, 1978
Austin Bridge Company
4100 Westheimer
Suite 101
Houston, Texas 77027
Attention: Mr. Walter C. Kennon
Re: Project Time
TC&B Job No. 1677-020
Construction of Spencer Highway -
Southern Pacific Grade Separation
City of La Porte, Texas
Gentlemen:
P. O. Box 13089
Houston, Texas 77019
5757 Woodway
(713) 780-4100
Telex 77-4185
As you are aware, the original contract time for this project
• was 300 calendar days. This time has been extended by a total
of 144 days and there is a recommendation pending action by
the City of La Porte for an additional five days in June.
The total of all possible extensions bring about a revised
completion date of June-~26~, 1978.
Since the project con-tract time expired prior to the end of
last month, we must reg;uire that you review the project status
and submit to us a revised schedule for the remaining work
and your estimate of your actual completion date. In revising
them, you should note Paragraph E of Section VIIIA of the
contract, which stipulates liquidated damages in the amount
of $350.00 per day.
We will look forward to an early receipt of your revisions.
If you have any questions, please do not hesitate .to call.
Very truly yours,
~:~~QCi!'c'S
Michael G. Baugher
Project Administrator
MGB/cc
cc: City of La Porte
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ConsultingEngineers AusTiN
DALLAS
HOUSTON
PORT ARTHUR
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The Honorable J. J. Meza
Mayor, City of LaPorte
P. 0. Box 1115
LaPorte, Texas 77571
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TOM BASS
COMMISSIONER
PRECINCT 1
June 28, 1978
Re: Health P ~g Activities in southeast Harris County
I
Dear Mayor e
As you know, a al legislation now requires that health planning shall be
done on a reg onal basis. In our region this is being accomplished through
the Area Health Commission of the Houston-Galveston Area Council. Sub-area
councils are being established within the region to provide a means of
"grass roots" involvement.
•
Your city lies within the southeast Harris County sub.-area. Membership of
the sub-area health councils (maximum 35, minimum 9) will be determined as
follows:
Members shall be appointed in the following manner:
The membership of the sub-area health council shall be appointed
by action of the Area Health Commission from among a list of
nominees. Prior to the appointment of an individual to a sub-
area council the Area Health Commission shall give special con-
sideration to recommendations made by members of the Area Health
Commission and H-GAC Executive Committee. Additional nominees
shall be solicited from other elected officials and organizations
in the service planning area with a demonstrated interest in
health. Individuals not nominated by any of the above means may
nominate themselves provided they have the written endorsement of
at least 25 other persons.
Would you please bring this matter to the attention of your City Council and
pass along to me the names of persons (either consumers or providers
of health services) which you or your council believe are particularly in-
terested in the health problems of this sub-area and who will be willing to
take the time to be active members of the sub-area health council.
There is no assurance that the Area Health Commission will appoint the people
• I recommend. However, I want to consider your suggestions before I make my
recommendations. In order to do this I need to receive your suggestions be-
fore August 1, 1978.
FAMILY LAW CENTER • 1115 CONGRESS AVENUE • HOUSTON,TEXAS 77002 • 713-221-6111
• •
Mayor J. J. Meza
• City of LaPorte
Page Two
If you have any questions regarding this matter, please call either Nancy
Gehman of my office (telephone 221-6111) or Jim Curran of the Health Systems
Agency (telephone 627-3200). Mr. Curran is the community health planner
assigned to work with your sub-area health council.
Certainly there is nothing so important to most of us as the good health
of ourselves and our families. The concept of regional planning to promote
good health on a community basis is central to the Health Systems Agency and
its success will depend upon the interest and support of each community.
Yo "tru ,
Tom Bass
TB:NG:bem
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TEXAS DEPARTMENT OF WATER RESOURCES
1700 N. Congress Avenue
Austin, Texas
TEXAS WATER DEVELOPMENT BOARD
A. L. Black, Chairman
Robert B. Gilmore,Vice Chairman
Milton T. Potts
John H. Garrett
George W. McCleskey
Glen E. Roney
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Harvey Davis
Executive Director
PUBLIC HEARING NOTICE
TEXAS WATER COMMISSION
Joe D. Carter,Chairman
Dorsey B. Hardeman
Joe R. Carroll
A Hearing8 Examiner of the Texas Department of Water Resources will conduct
a public hearing beginning at
9:00 a.m., August 4, 1978
Room 118
Stephen F. Austin State Office Bldg.
1700 North Congress Avenue
Austin, Texas
on the Municipal Facilities Construction Grant Project Priority List for
Fiscal Year 1979. The Project Priority List is a listing of projects in
. priority rank order to be considered for funding within the Federal
Construction Grant Program.. The Project Priority List is developed pursuant
to the Rules for the Federal Construction Grant Program adopted by the Texas
Water Development Board on behalf of the Texas Department of Water Resources,
specifically Subchapter 5 of Chapter 15.
Interested persons are encouraged to attend the hearing and to present re-
levant and material comments concerning the ranking of the various municipalities
throughout the state. In addition, participation in the hearing through
written comments to Rebecca S. Motal, Hearings Examiner, at the address below
is encouraged.
A copy of the Municipal Facilities Construction Grant Project Priority List
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P.O. Box 13087 Capitol Station • Austin, Texas 78711 • Area Code 512/475-3187
C~
Page Two
Public Hearing Notice
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may be obtained from the Construction Grants and Water Quality Planning
Division, Texas Department of Water Resources, P. O. Box 13087, Capitol
Station, Austin, Texas 78711 or by telephoning 512/475-7891 after
July 14, 1978. The hearing is being conducted pursuant to Sections 5.131
and 5.132 of the Texas Water Code and Chapter 1 of the Rules of the Texas
Water Development Board.
Issued this p~ ~ day of ~ ~/ 1978.
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Rebecca S. Motal,
Hearings Examiner,
General Counsel's Office
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i TEXAS INDUSTRIAL COMMISSION
James H.Harwell, Executive Director
July 7, 1978
Dear Mayor:
The last session of the Texas Legislature placed on the November, 1978,
general election ballot a constitutional amendment which would allow
cities and counties the authority to issue revenue bonds to create jobs
under specific conditions of statuatory law also passed. This amendment
is amendment two on the ballot and has been called the Jobs for Texans
Amendment.
The Texas Industrial Commission is charged with approving the bond issue
along with the Attorney General and the State Securities Board. During
the week of July 31-August 4, our Commissioners and staff will hold a
series of hearings throughout Texas on the proposed guidelines by which
the Commission will review and decide on each issue.
Because you and your city council are directly affected by these provisions,
you will want to review these proposed guidelines, discuss them with
council members and make comments or seek more information at one of the
hearings in your area. A copy of the hearing schedule and proposed
guidelines are enclosed for your benefit.
We encourage your attendance and comments at these hearings.
Sincerely,
~~~t~~~
mes H. Harw
Executive Director
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Enclosures
410 East Fifth Street * Box 12728 Capitol Station, Austin, Texas 78711 * Phone 512-472-5059*Tefex #77G-488
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SCHEDULE OF PUBLIC HEARINGS ON PROPOSED GUIDELINES
• FOR APPROVAL OF REVENUE BONDS FOR JOB CREATION
MONDAY, JULY 31,_1978
TIME: 10:00 a.m.
PLACE: Arlington Chamber of Commerce Auditorium, 316 W. Main
CITY: Arlington
TIME: 10:00 a.m.
PLACE: Texas Electric Service Company, 520 N. Lincoln
CITY: Odessa
TIME: 10:00 a.m.
PLACE: City Council Chambers, 2nd & Lavaca
CITY: Austin
TIME: 3:00 p.m.
PLACE: .Sherman Public Library, 403 N. Travis
CITY: Sherman
TUESDAY, AUGUST 1, 1978
• TIME: 9:00 a.m.
PLACE: Vagabond Inn, 4505 N. Stateline Avenue
CITY: Texarkana
TIME: 9:00 a.m.
PLACE: El Tropicana Hotel, 110 Lexington
CITY: San Antonio
TIME: 9:00 a.m.
PLACE: Holiday Inn, 333 Rio Concho Drive
CITY: San Angelo
TIME: 3:00 p.m.
PLACE: Holiday Inn, Estes Parkway & IH 20
CITY: Longview
TIME: 3:00 p.m.
• PLACE: Uvalde Civic Center
CITY: Uvalde
TIME: 3:00 p.m.
PLACE: Abilene Civic Center, 6th & Pine
CITY: Abilene
TIME: 3:00 p.m.
PLACE: E1 Paso Chamber of Commerce, 10 Civic Center Plaza
• CITY: E1 Paso
•
WEDNESDAY, AUGUST 2. 1978
TIME: 9:00 a.m.
PLACE: Chamber of Commerce Building, 2 North 5th
CITY: Temple
TIME: 9:00 a.m.
PLACE: Ko-Ko Palace, 50th & Avenue Q
CITY: Lubbock
TIME: 10:00 a.m.
PLACE: Union National Bank
CITY: Laredo
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TIME: 3:00 p.m.
PLACE: Texas A&M University, Memorial Student Center, Room 206
CITY: Bryan
TIME: 3:00 p.m.
PLACE: City Council Chamber, Administration Building, 7th & Buckman
CITY: Amarillo
THURSDAY, AUGUST 3, 1978
TIME: 9:00 a.m.
PLACE: 1st Security Bank, Community Room, 505 Orleans Street
CITY: Beaumont
TIME: 9:00 a.m.
PLACE: La Pasada Hotel, 100 N. Main, Casa De Palmas Room
CITY: McAllen
TIME: 10:00 a.m.
PLACE: Texas Electric Company, 900 Scott
CITY: Wichita Falls
TIME: 3:00 p.m.
PLACE: Lufkin Civic Center, 602 N. 2nd
CITY: Lufkin
TIME: 3:00 p.m.
PLACE: Corpus Christi Bank & Trust, Community Room, 615 Upper N. Broadway
CITY: Corpus Christi
FRIDAY, AUGUST 4, 1978
TIME: 10:00 a.m.
PLACE: Conroe High School Auditorium
CITY: Conroe
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TIME: 10:00 a.m. •
PLACE: Community Center Annex, 2905 E. North Street
CITY: Victoria
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P R O P O S E D
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Guidelines for the Approval by the
Texas Industrial Commission of
Revenue Bonds for Job Creation
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ARTICLE I
SECTION 1.01: These rules, regulations and guidelines have been
adopted by the Texas Industrial Commission (hereafter called Commission) under
the provisions of Article 5190.5, Section 1-19, V.A.T.C.S, and filed with the
Secretary of State, Austin, Texas.
SECTION 1.02: These rules, regulations and guidelines may be amended
by the Commission at any time as the result of a public hearing held in Austin,
Texas, after 3 days notice of such public hearing shall have been given in the
manner prescribed by Article 6252-17, V.A.T.C.S., but such amendment shall
become effective only upon being filed with the Secretary of State.
SECTION 1.03: No filing fees are required for any application filed
with the Commission.
SECTION 1.04: Communications with and applications to the Commission
should be addressed to it at Box 12728, Capitol Station, Austin, Texas 78711.
SECTION 1.05: The terms defined in Article 5190.5, Section 1-19,
V.A.T.C.S. shall have the same meaning when used in these rules, regulations and
. guidelines.
"Project" means the land, building, equipment, facilities and improvements
(one or more} found by the governing body to be required or suitable for the
promotion of industrial development and for use by manufacturing or industrial
enterprise, irrespective of whether in existence or required to be acquired or
constructed after the making of such findings by the governing body.
"Manufacturing or industrial enterprise" means any type of economic
activity as defined and listed in the Manufacturing Division (Division D) in the
1972 edition of the Standard Industrial Classification Manual, published by the
Executive Office of the President/Office of Management and Budget.
SECTION 1.06: The payment of obligations of an issuer shall be concurrent
with and not in excess of revenues from the lease of the project.
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ARTICLE II
Industrial Project
SECTION 2.01: In general the issuer should take the following steps
(although not necessarily in the following order) to complete an industrial bond
project:
(1) Locate a qualified industry to establish a project in the
community.
(2) Have available to it at the outset the assistance and advice
of:
(a) A financial advisor
(b) Bond counsel
(c) Its attorney
(3) Review the project proposal after all information is made
available to it and both determine its feasibility and make findings with reference
to whether it tends to further the purposes and policies of the Act for Development
of Employment and Industrial Resources of 1977 hereinafter called the Act.
(4) Enter into preliminary agreements, subject to obtaining the •
approval of the Commission, providing for the construction and financing of the
project which may include, among others, the following:
(a) Estimate and breakdown of project costs;
(b) Preliminary lease terms, mortgage terms, and rental
payments (including duties, obligations and responsibilities of the
issuer, lessee, and ultimate lessee);
(c) Preliminary bond amortization schedule.
`(5) Obtain a letter from financial advisor of issuer that project
is feasible from a financial standpoint.
(6) File application for tentative approval with the Commission.
(7) File application for approval with the Attorney General and
State Securities Board under provisions provided by law.
(8) Prepare and execute final agreements, leases and trust
indenture, obtain final approval from the Commission, and issue and sell bonds.
SECTION 2.02: In order for the Commission to give tentative approval
of a project an issuer shall submit a preliminary application which contains the
following: •
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(1) A certified copy of a resolution which describes the project
and makes the findings (a) required by Section 2(j) of the Act, and (b) Section
2.10(3) hereof.
(2) The information (on a preliminary basis) required by Section
Z.Oi(4) and 2.01(5) hereof.
(3) The ultimate lessee's certification in writing that it will
be in position to comply with the requirements of Section 2.03 and Section 2.04
hereof.
(4) C.P.A. audit reports of lessee and ultimate lessee for each
of the last five (5) fiscal years, if available which would show that:
(a) The lessee and ultimate lessee are financially sound.
(b) The ultimate lessee has a net worth of at least one and
one-half (1-1/2) times the principal amounts of bonds sought to be
issued to provide facilities for the ultimate lessee.
(5) Information as to:
(a) The principal officers, experience and demonstrated
management ability of the lessee and ultimate lessee;
• (b) Nature and description of the business of the lessee
and ultimate lessee;
(c) Estimate of number of jobs to be created, the type of
jobs and annual payroll of the ultimate lessee.
(b) Analysis of a fiscal consultant (who may with the consent of
the Commission be a financial officer of ultimate {lessee) as to the feasibility
of the project. For good cause shown, the Commission may provide that such
analysis, data relating to trade secrets, and financial structures, either or
all will be confidential in the files of the Commission for a period of up to
three years.
(7) A plat showing project location of existing and planned;
(a) Access roads;
(b) Utilities - water, sewer, electric, gas;
(c) Drainage structures;
and showing that provision has been made for the payment of any expense required
to provide such facilities.
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SECTION 2.03: Application of an issuer for final approval of a project
shall include:
(1) Representations of the issuer, lessee and ultimate lessee
that
(a) The issuer has or will acquire good and indefeasible
title to the land required for the project. The interest of the
issuer in the land shall be fee simple title except for good cause
shown to the Commission. Title insurance had been or will be secured
by the issuer in a title insurance company satisfactory to the Commission.
(b) Issuer will employ architects and registered professional
engineers, either or both, in connection with the design and construction
(including supervision of construction) of the project.
(c) No bond proceeds shall be paid to or for the ultimate
lessee for usual expenses of operation.
(d) A detailed showing of the cost of the project has been
supplied to the Commission together with a list of the sources from
which payment will be made. The statement shall show items of cost as
follows:
a'
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(i) the acquisition of all land, right of way, property •
rights, easements and interests acquired or to be
acquired;
(ii) machinery and equipment;
(iii) building costs;
(iv) financing charges,
(1) Interest prior to, during construction and
for one year after completion of construction,
if applicable;
(2) Fees of financial advisor,~and bond counsel,
bond delivery and printing expense and any
fees in connection with financing and feasibility
studies;
(v) engineering - including costs of estimates, surveys;
(vi) architectural fees;
(vii) administrative expense of issuer and lessee;
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(viii) other enumerated expenses;
(ix) contingencies - (not to exceed 10°~ of the sum of
items (ii), (iii), (v) and (vii).
(2) The warranty of the ultimate lessee that:
(a) The analysis required in Section 2.02(6) hereof is
accurate and current as of the date of the application for final
approval.
(b) It has corporate authority to execute the lease agreement
and is not prohibited from so doing by any other lease or loan agreement
or corporate commitment.
(c) It will not dissolve or distribute all or substantially
all its assets to its shareholders without prior written approval of
the issuer and the Commission.
(d) If a corporation, it has a certificate of authority to
transact business in the State of Texas, and will continuously maintain
such certificate during the lease period. If, in accordance with the
provisions hereof, the ultimate lessee should merge into a corporation
not organized and existing under the laws of Texas, should consolidate
• with one or more corporations under circumstances wherein the consolidated
corporation is not a corporation organized and existing under the laws
of Texas or should transfer all or substantially all of its assets to
a corporation not organized under the laws of Texas, it will cause the
corporation into which it merged, the corporation resulting from such
consolidation, or the corporation to which all or substantially all of
its assets were transferred, as the case may be, to qualify to do
business in Texas as a foreign corporation and to remain so qualified
continuously during the remainder of the said period.
(e) Except as provided in the preceding Paragraph (d) the
ultimate lessee may not assign, sublet, or in any way dispose of or
alienate all or any part of its interest in a lease agreement executed
pursuant to the Act without the prior written approval of the issuer
and the Commission. Such written approval shall not be unreasonably
withheld. No assignment or sublease shall release or relieve the
ultimate lessee of any obligation under such lease agreement unless
the issuer and the Commission executes a prior written release.
(f) It will not hereafter incur or guarantee dept or make
rental commitments if by so doing its ability to make the payments
provided for under the lease agreement shall be impaired so as to
cause a default or delay in making payments thereunder.
(g) It will make all payments provided for in the lease
agreement and perform and observe its agreement and covenants therein
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which shall be absolute and unconditional, irrespective of any rights
of setoff, recoupment or counterclaim it might otherwise have against
the lessee, issuer, or other. The ultimate lessee will not suspend or
discontinue any such payment or fail to perform and observe any of its
other agreements and covenants or terminate any agreement for any
cause, including, without limiting the generality of the foregoing,
any acts or circumstances that may constitute an eviction or constructive
eviction, failure of consideration or commercial frustration of purpose,
or any damage to or destruction of its plant or any part thereof, or
any change in the tax or other laws of the United States of America,
the State of Texas, or any political subdivision of either thereof,
loss of all or part of its plant by eminent domain (unless the issuer
institutes such proceedings), or any failure of the lessee or issuer
to perform and observe any agreement or convenant, whether expressed
or implied, or any duty, liability or obligation arising out, of or
connected with the lease agreement. However, the ultimate lessee may,
at its own cost and expense and in its own name prosecute or defend
any action which it feels is reasonably necessary in order to secure
or protect its rights.
(3) Warranty of the issuer that it will construct acquire,
equip, etc., the project.
(4) The instruments required to show compliance with Sections 6,
7, 11, and 13 of the Act. •
(5) A completed certified copy of the lease agreement with the
lessee and ultimate lessee and any other instruments in connection with the
financing.
SECTION 2.04: The lease agreement with the ultimate lessee shall
contain, as a minimum, provisions satisfying the following requirements:
(1) The ultimate lessee shall be unconditionally obligated to
pay rent which is adequate to pay the principal of and interest on the bonds of
the issuer as the same become due, and adequate provision shall be made to pay
any fees due a paying agent bank, trustee and any other fees or charges which
constitute a lien upon the properties leased or upon the rental income.
(2) No option to purchase all or part of a project may be
exercised unless:
(a) All bonds (and interest thereon) delivered by an issuer
to provide such facilites have been paid or provision made for their
final payment, and
(b) During the time the bonds and interest thereon remain
unpaid there was no failure by a lessee or ultimate lessee to pay
lease rentals at the time and in the manner required by the agreement,
provided such rental payments shall be considered as made at the time
required if •
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(i)
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no event of default was declared, and
(ii) such payment was made within 15 calendar days of
the date it was scheduled to become due.
(3) The primary term of any lease shall not expire prior to the
final principal maturity of bonds of an issuer the proceeds of which provide the
project,
(4) Tha maturity schedule of bonds shall be arranged so the
principal maturity thereof does not exceed the useful life of the facilities
(machinery, equipment, buildings) to be provided with the proceeds of the bonds.
(5) The following details:
(a) Term of lease,
(b) Amount of rental payments to be paid by the lessee and
ultimate lessee to amortize the bond issue.
(6) Ultimate lessee must pay all expenses of repair, maintenance
and operation of the project.
(7) The ultimate lessee will take out and maintain in effect, or
will cause to be taken out and maintained in effect, the following insurance;
(a) Insurance to the extent of the full insurable value of
the building and improvements which are a part of the project, against
damage or loss by fire, lightning, ice, explosion, strikes, locked-out
workers or persons taking part in labor disturbances, riots and civil
commotions, vandalism, malicious mischief, tornado, cyclone, windstorm,
and collision from or by airborne or automotive traffic with standard
deductible provisions for any one casualty;
(b} In time of war in which the United States of America is
a belligerent, such insurance to the extent of the full insurable
value of the project as may be available from the United States of
America against loss or damage by the risks and hazards of war;
(c) Use and occupancy insurance to the extent necessary to
insure payment of the lease payable by ultimate lessee under the
Assigned Lease during the time required to repair ar restore the
buildings in the event of any damage thereto or destruction thereof,
limited with respect to such Basic Rent payable under the Assigned
Lease to the amount of such rent payable during the six-month period
next succeeding such damage or destruction;
•
(d} Insurance against liability for injury to or for death
of persons and for damage to or for loss of property occurring on the
project or in any way related to the operation thereof, in such amounts
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as are customarily carried by others engaged in a similar business
enterprise for death of or bodily injury to any one person; for death
and bodily injury claims resulting from any one accident; and for
property damage;
(e) Boiler and pressure vessel (including pressure pipes)
explosion insurance in an appropriate amount (with deductible provisions)
with respect to all boilers, pressure vessels and pressure pipes
installed on the project;
(f) Such workmen's compensation or employer's liability
insurance as may be required by law and such surety, theft .and other
insurance as is customarily carried by others in a similar business
enterprise.
All such insurance policies shall contain waiver of subrogation clauses in favor
of the issuer, lessee and ultimate lessee and shall be taken out and maintained
in generally recognized responsible insurance companies, qualified under the
laws of the State of Texas to assume the respective risks undertaken. All such
insurance policies except those in (d) and (f) above shall provide that the
proceeds of such insurance shall be payable to the trustee; provided that all
losses may be adjusted by ultimate lessee, subject to the approval of the trustee.
All policies evidencing the insurance required to be carried shall be deposited
with the trustee. Prior to the expiration of any such policy, ultimate lessee
will furnish the trustee satisfactory evidence that such policy has been renewed •
or replaced by another policy, or that there is no necessity therefor. "Full
insurable value" shall mean the actual replacement value less physical depreciation.
All policies of insurance shall contain an undertaking by the respective insurers
to the extent obtainable that such policies shall not be modified or cancelled
without at least ten (10) days' written notice to the trustee.
(8) In the event of the
(a) Taking of substantially all of the project under
eminent domain proceedings, or
(b) The destruction of substantially all of the project,
the trustee (upon the written request of the issuer) shall have the
right to
(i) call all outstanding bonds of the issuer (delivered
to provide the project) at the price of par and
accrued interest to date of redemption, and
(ii) to apply the proceeds it has received to the
redemption of such bonds. The ultimate lessee
shall also be obligated to supplement funds held
by the trustee as may be required to retire such
indebtedness.
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(9) For the assignment of the lease agreement of the ultimate
lessee to a corporate trustee for the benefit of the issuer.
SECTION 2.05: No project shall be approved by the Commission unless
the Commission finds the completion of the project will alleviate unemployment
by the promotion of industrial development.
In general, the following guideline shall be considered by the Commission
in making such findings: After the third year the anticipated annual payroll
shall be equal to one and one-half times the amount of bonds issued to provide
the facilities.
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