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Home My WebLink About1992-01-13 Regular MeetingauoH :s~EH auojEys ~o~Elnt puE ax.zEj~ 'uogjaxS '~E~ '.zaq.zod 'uijgbnEZoy~ '.zaMO.zuy '.zadoo~ 'puEj.zaugng suos.zadjzouno~ :sa~C~ •s~CEU p puE sa~E 6 'pai.z.zEO uotgowt aqy •uzjubnEZoy1 uos~adjzouno~ Aq puooag •paquasa.z sE sagnutut 6 .zaquzaoaa aqq ano.z E oq uogjaxg uos.za jiouno~ q apEUU sEM uoigoy,I 'T66T ' 6 .zaqu~aoaQ uo pjau buigaays .zEjnbag auq ~o sagnuiut aqq buino.zddE pa.zaptsuoo jzouno~ puEj.zaugng uos.zadjtouno~ : uiEgsq~ auoH :s~EH auojEyl .zo~IeL1 puE ax.zEj~ 'uogjaxg '~CE~ '.zagzod 'uijgbnEZoy~ '.zaMO.zuy '.zadoo~ suos.zadjiouno~ :sa~~ •uiEgsgE j 's~EU 0 'sa~E g 'pat.z.zEO uotgow[ aqs •uijubnEZoy~ uos.zadjtouno~ ~Tq puooag •paquasa.z sE sagnuitu gj .zaquzanoH auq ano.z E oq ax.zEj~ uos.za jTOUno~ q apEUZ sEM uoTgoys T 66T ' 8T .zaqutanoH pjau buzgaayl dousx.zoM puE buigaayi pajjE~ jEioadg auq ~o sagnutut auq buino.zddE pa.zaptsuoo jiouno~ •uogjaxg uos.zadjTOUno~ ~q uanTb sEM uOT~E~OAUt aus suazzgio ST 'uE~g qua.zg ' ET~.ZEJ assay ' asEu~ jnEd ' uEUZ33o~ aT.zEy~j : quasa.zd s,zaggp buo.zgstuz~ uuor ~au.zogq~ ~Cqt~ quEgsiss~ 'p.zEEb.zanp xoig .za.znsEa.zs/aogipn~ jEU.zaqul 'uagsp st.zq~ 3aTu~ gyss 'ugT33T.z~ uin.zS TETOT330 butpjing ~aTua 'pooM~agg uEgg uotgEa~oag puE sx~Ed ~o .zogoa.ztQ 'asEag aor 3atu~ a.zi3 '~IjaaH uzos •qZ aozjod 'ggajjt~ anagg sx.zoM oTjgnd 30 .zogoa.ziQ 'pjat3uogTZ 3~ar .zo~.oa.zzQ aouEUt3 '~gbig sznoZ .zabEUE~;,j buzsEuo.znd/sao.znosag uEntng 'su.zaor uuor .zabeuEys ~C~tJ quEgsiss~ 'xaEjg ai.zau~ ~.zE~.a.zoag ~qi~ 'suixs~ xoux ~Iau.zogq~ Aqi~ ' E.za~.zag qog .zabEUEy~ ~qT~ : quasa.zd ~~Eqg qi~ ~o s.zagw[ayi auoH : quasq~ jiouno~ qT~ ~o s.zagtuays ax.zEj~ ~i.z.zar 'uogjaxg uoa •g 'L~E~ sia.oaQ '.zaq.zod uogj~ 'uTjgbnEZoy1 qog '.zar~o.zus qog '.zadoo~ axiys 'puEj~au~ng ~Cn~ suos:zadjtouno~ 'auojEys uEUZ.zoH .zo~IEy1 :quasa.zd jzouno~ qT~ 3o s.zagtuayl ~I' d 00 = 9 qE auojEY1 .zo~CEys ~q .zap.zo oq pajjEO sEM buigaawt aus Z 6 6T ' £ T 1~2irdnldFlr zl~rtno~ ASIA ~Z2IOd ~ 30 9AiIS~~lni ~nosx sHS~ ~o s~snHlr~ ~ ~ .~ .£ Z .j ~ ~ Minutes, Regular Meeting, La Porte City Council January 13, 1992, Page 2 5. Council considered approving the minutes of the Special Called Meeting held on December 18, 1991. Motion was made by Councilperson Thrower to abprove the December 18 minutes as presented. Second by Councilperson Gay. The motion carried, 7 ayes, 0 nays, 2 abstain. Ayes: Councilpersons Sutherland, Thrower, McLaughlin, Gay, Skelton, Clarke and Mayor Malone Nays: None Abstain: Councilpersons Cooper and Porter 6. Mayor Malone presented a letter of appreciation to Mr. Joe Wallace, to express Council's gratitude for a gift of land adjacent to John Brown Park in La Porte. This will enable the park to be increased in size. 7. Special Certificates were presented to three outstanding citizens: Marie Coffman, Paul Chase and Jesse Garcia. This is to be an ongoing event by City Council in honor of the Centennial year. The three recipients were very appreciative. 8. There were no citizens wishing to address Council. 9. Council considered an ordinance adopting City of La Porte investment policy. The City Attorney read: ORDINANCE 1802 - AN ORDINANCE ADOPTING THE CITY OF LA PORTE INVESTMENT POLICY DATED JANUARY 13, 1992; PROVIDING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. It was noted that in Section 3, the words "Personnel Policy Manual" need to be replaced with the words "Investment Policy." Motion was made by Councilperson Cooper to adopt Ordinance 1802 as read by the City Attorney and with the word replacements noted. Second by Councilperson Thrower. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 10. Council considered an ordinance approving and authorizing a contract between the City of La Porte and McElroy & Sullivan, L.L.P., Attorneys at Law. Minutes, Regular Meeting, La Porte City Council January 13, 1992, Page 3 The Mayor requested that this item be taken to Executive Session. There was no objection. 11. Council considered an ordinance approving and authorizing a lease agreement between the City of La Porte and Harris County for a Public Health unit. The City Attorney read: ORDINANCE 1804 - AN ORDINANCE APPROVING AND AUTHORIZING A LEASE AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY FOR A PUBLIC HEALTH UNIT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Thrower to adopt Ordinance 1804 as read by the City Attorney. Second by Councilperson Sutherland. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 12. Council considered an ordinance adopting provisions of Article 8309h, Section 5(c), Texas Revised Civil Statutes. The City Attorney read: ORDINANCE 1805 - AN ORDINANCE ADOPTING THE PROVISIONS OF ARTICLE 8309h, SECTION 5(c), WORKMEN'S COMPENSATION INSURANCE FOR EMPLOYEES OF POLITICAL SUBDIVISIONS, TEXAS REVISED CIVIL STATUTES; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson McLaughlin to adopt Ordinance 1805 as read by the City Attorney. Second by Councilperson Thrower. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 13. Council considered a resolution authorizing condemnation of 10 foot water line easements on Spencer Highway. This item was presented as Resolution 92-01, and is necessary due to owners of three lots on Spencer Highway being unwilling to grant an easement to the City of La Porte for a water line. • • Minutes, Regular Meeting, La Porte City Council January 13, 1992, Page 4 Motion was made by Councilperson Skelton to adopt Resolution 92-01. Second by Councilperson Sutherland. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 14. Council considered a resolution authorizing participation in the Texas Local Government Pool "TexPool." The City Attorney read: RESOLUTION 92-02 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, AUTHORIZING PARTICIPATION IN THE TEXAS LOCAL GOVERNMENT INVESTMENT POOL "TEXPOOL." Motion was made b~ Councilperson Skelton to adopt Resolution 92-02 as read b~ the City Attorney. Second by Councilperson Gay. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 15. Council considered approving an amendment to Cliff Hyde Flying Service, Inc., lease. This amendment extends the option described in the Lease Amendment approved December 12, 1988 between the City of La Porte and Cliff Hyde Flying Service, Inc., for one (1) year, expiring 12/31/92. Motion was made by Councilperson Clarke to approve the lease aareement amendment with Cliff Hyde Flvina Service. Second by Councilperson Gay. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 16. Council considered authorizing the Director of Finance to amend various operating budgets. These budget amendments represent purchase orders for goods that were ordered and funds that were committed to procure items necessary to operate the City but that had not been • Minutes, Regular Meeting, La Porte City Council January 13, 1992, Page 5 received. These items need to be re-established for the new fiscal year, and will have no impact on the projected working capital balances. Motion was made by Councilperson Gay to agurove amendment of various operating budgets. Second by Councilperson Thrower. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None The budgets to be amended are as follows: General Fund - $73,392; Utility Fund - $6,198; Sylvan Beach Fund - $1,680; Vehicle Replacement - $176,653; Vehicle Maintenance - $1,456; Golf Course - $16,460. 17. Council considered awarding a contract to Follis Construction for Main Street sidewalk repair and wheelchair ramps. Motion was made by Councilperson Gav to award the contract for Main Street sidewalk repair and wheelchair ramps to Follis Construction in the amount of $38,379.00. Second by Councilperson Sutherland. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 18. Consent Agenda - Council considered awarding bids as follows: (A) Consider approving purchase of exercise equipment; (B) Consider awarding a bid for a library roof; (C) Consider awarding a bid for an ambulance; (D) Consider awarding a bid for radios; (E) Consider awarding a bid for modular office furniture. Councilperson Cooper requested that items (C) and (E). After discussion of these items, motion was made by Councilperson Skelton to approve the consent agenda as presented. Second by Councilperson Gay. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None ~ ~ Minutes, Regular Meeting, La Porte City Council January 13, 1992, Page 6 Councilperson Sutherland stated that, in the future, he would like to see the bid list for items being bid. 19. Administrative Reports - The City Manager updated Council on carport permit applications received December 26, 1991 through January 8, 1992. There were two applications. One was for 17731 Alamo Drive, which was denied due to a conflict with private restriction in Monument Estates. The other, for 701 South Kansas, was denied based on the definition of a carport and its proposed location. The applicant has submitted an amended request, which complies with zoning requirements. It is anticipated that the permit will now be issued. 20. Council Action - Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone brought items to Council's attention. 21. Council adjourned into Executive Session at 7:35 P.M. to address the following items: (A) Legal - Meet with Special Counsel regarding Houston Chemical Services, Inc./Southern Ionics, Inc.; (B) Legal - Discuss pending litigation with City Attorney; (C) Personnel - Evaluation of City Attorney. Also, item 10 on the Agenda, which was to approve and authorize a contract between the City and McElroy & Sullivan had been requested to be taken to executive session under Legal. Council returned to the Table at 10:05 P.M. The Mayor announced that no action had been taken on items A, B, and D, and that item C had not been discussed. Item 10 was discussed. Item 10 was addressed at this time. The City Attorney read: ORDINANCE 1803 - AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND McELROY & SULLIVAN, L.L.P., ATTORNEYS AT LAW; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Clarke to adopt Ordinance 1803 as read by the City Attorney. Second by Councilperson Porter. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None • • Minutes, Regular Meeting, La Porte City Council January 13, 1992, Page 7 22. There being no further business to come before the Council, the meeting was duly adjourned at 10:07 P.M. Respectfully submitted: Cherie Black, City Secretary Passed & Approved this the 27th day of January, 1992 Norman L. Malone,Mayor REQUEST FOR CITY COUNCIL AGENDA ITEM AGENDA DATER UESTED January 13, 1992 REQUESTED Jeff Litchfield DEPARTMENT Director of Finance REPORT RESOLUTION XX ORDINANCE EXHIBITS: Ordinance 1802 Public Funds Investment Act of 1987 SUMMARY AND RECOMMENDATION The 1991-92 fiscal year Budget included the addition of a new position to help manage the City's cash and investment portfolio. That individual is now on board. In order for us to properly manage our idle cash, the City needs a formal Investment Policy. The document attached to Ordinance 1802 is the proposed Investment Policy for the City of La Porte. The policy follows the guidelines established by the Public Funds Investment Act of 1987, as well as amendments through the 1991 legislative session. The primary objective of the policy is to provide safe and liquid investments for the City while obtaining the highest possible yield. The policy calls for oversight responsibility by the City Manager and the Audit Committee and includes sections on eligible investments, procurement, diversification, selection of banks and dealers, safekeeping and custody, and management and internal controls. The document has been through an internal review which included the City Manager and the City Attorney. It has also been reviewed and approved by our financial advisors, Moroney & Beissner and our audit firm, Null & Associates. We believe that the City of La Porte has a responsibility to its taxpayers to make prudent use of the funds they have entrusted to our care. One method of meeting this responsibility is to assure that the City maximizes its income by capitalizing on favorable interest bearing instruments. ACTION REQUIRED BY COUNCIL: Adopt or deny the passage of Ordinance 1802. AVAILABILITY OF FUNDS: GENERAL FUND UTILITY FUND OTHER ACCOUNT NUMBER: N/A FUNDS AVAILABLE YES NO APPROVED FOR CITY COUNCIL AGENDA ~• 1-8'q~ ROBERT T HERRERA DATE CITY MANAGER • • ORDINANCE N0. AN ORDINANCE ADOPTING THE CITY OF LA PORTS INVESTMENT POLICY DATED JANUARY 13, 1992; PROVIDING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTS: Section 1. The City Council of the City of La Porte hereby adopts the "City of La Porte Investment Policy" dated January 13, 1992, a true and correct copy of which is attached to this Ordinance as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. Section 2. The "City of La Porte Investment Policy" is intended to comply in all respects with the Public Funds Investment Act of 1987, codified as Article 842a-2, Public Funds Investment Act, of the Texas Revised Civil Statutes. The "City of La Porte Investment Policy" shall hereafter be deemed to be amended to embrace any subsequent amendments to the said Public Funds Investment Act of 1987, so as to conform to the terms and provisions of said Act. Section 3. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this ordinance or the City of La Porte Personnel Policy Manual hereby adopted, shall for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, or said Personnel Policy Manual, and it is hereby declared to be the intention of this City Council to have passed each section, sentence, phrase or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase or clause, or part thereof, may be declared invalid. Section 4. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated; and that this meeting has been open to the public as required by law at all times during which this ordinance • ORDINANCE NO. PAGE 2 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 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of January, 1992. CITY OF LA PORTE ATTEST: Cherie Black City Secretary APPRQ'~C~D: , Knox W. Askins City Attorney BY Norman L. Malone, Mayor City of La Porte, Texas Investment Policy Adopted by the City Council of the City of La Porte on January 13, 1992, by Ordinance No. 1802 City of La Porte, Texas Robert T. Herrera Ciry Manager Jeff Llfchfle/d, CPA Director of Finance • • SCOPE This investment policy applies to the investment activities of the government of the City of La Porte, Texas. FUNDS INCLUDED All financial assets of all funds managed by the City, including but not limited to receipts of Tax Revenues, Charges for Services, Bond Proceeds, Interest Incomes, Loans and Funds received by the City where the City performs a custodial function. II. OBJECTIVES SAFETY The primary objective of the City's investment activity is the preservation of capital in the overall portfolio. Each investment transaction shall seek first to ensure that capital losses are avoided, whether they be from securities defaults or erosion of market value. LIQUIDITY The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. YIELD The City's cash management portfolio shall be designed with the objective of regularly exceeding the average rate of return on the three month U.S. Treasury Bill. The investment program shall seek to augment returns above this threshold consistent with risk limitations identified herein and prudent investment principles. RISK OF LOSS All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. III. OVERSIGHT RESPONSIBILITY Oversight Responsibility for the investment activity of the City of La Porte shall rest with the Audit Committee and the City Manager. • • IV. RESPONSIBILITY AND CONTROL DELEGATION Management responsibility for the investment program is hereby delegated to the Director of Finance, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. SUBORDINATES All persons involved in investment activities will be referred to as "Investment Officials". No person shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance. The Director of Finance shall be responsible for all transactions undertaken, and shall establish a system of controls to regulate the activities of Subordinate Investment Officials. QUARTERLY REPORTS The Director of Finance shall submit quarterly an investment report that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed in the most recent quarter, describe the portfolio in terms of investment securities, maturities, risk characteristics and other features. The report shall explain the quarter's total investment return and compare the return to budgetary expectations. The report shall include an appendix that discloses all transactions during the quarter. ANNUAL REPORTS Within 90 days of the end of the fiscal year, the Director of Finance shall present a comprehensive annual report on the investment program and investment activity. The annual report shall include twelve-month and quarterly comparison of returns, and shall suggest improvements that might be made in the investment program. PRUDENCE Investments shall be made with the exercise of due care, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable safety of their own capital as well as the probable income to be derived. CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. 2 • • DISCLOSURE Employees and Investment Officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business with the City of La Porte, and shall further disclose any large financial or investment positions that could be related to the performance of the City's portfolio. Employees and Investment Officers shall subordinate their personal investment transactions to those of this jurisdiction, particularly with regard to the timing of purchases and sales. V. INVESTMENTS ACTIVE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive portfolio management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. ELIGIBLE INVESTMENTS Assets of funds of the government of the City of La Porte may be invested in: A. obligations of the United States or its agencies and instrumentalities; B. direct obligations of the State of Texas or its agencies; C. other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities; D. obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; E. certificates of deposit issued by state and national banks domiciled in this state that are: 1. guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or 2. secured by obligations that are described by subsections A-D of this section, which are intended to include all direct agency or instrumentality issued mortgage backed securities rated AAA by a national recognized rating agency, or by the Public Funds Investment Act of 1987, codified as Art. 842a-2, Revised Civil Statutes and that have a market value of not less than the principal amount of the certificates; 3 • • F. fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by subsection A-D of this section, pledged with a third party selected or approved by the political entity, and placed through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in this state. G. certificates of deposit issued by savings and loans associations domiciled in this state that are: guaranteed or insured by the Federal Savings and Loan Insurance Corporation, or its successor; or 2. secured by obligations that are described by subsections A-D of this section, which are intended to include all direct agency or instrumentality issued mortgage backed securities rated AAA by a national recognized rating agency, or by the Public Funds Investment Act of 1987, codified as Art. 842a-2, Revised Civil Statutes and that have a market value of not less than the principal amount of the certificates; H. prime domestic banker's acceptances; I. commercial paper with a stated maturity of 270 days or less from the date of its issuance that is rated not less than A-1, P-1, or the equivalent by at least two nationally recognized credit rating agencies; J. SEC registered, no-load money market mutual fund with a dollar weighted average portfolio maturity of 120 days or less whose assets consist exclusively of the obligations that are described by subsection A- D of this section and whose investment objectives include seeking to maintain a stable net asset value of $1 per share; K. local government investment funds or pools, authorized by the state for municipality participation; L. other investment instruments that are approved by the state for municipality participation. PROCUREMENT Investments of subsections A-J of this section may be made only after competitive bids are solicited from at least three sources. LENGTH OF INVESTMENTS Except for an amount equal to the Revenue Debt Service Reserve Funds plus 50% of the expected ending working capital balances for the operating funds, the City of La Porte shall invest in instruments whose maturities do not exceed two (2) years at the time of purchase. 4 DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment portfolios. Assets held in the common investment portfolio shall be diversified to eliminate the risk of loss resulting from one concentration of assets in a specific maturity, a specific issuer or a specific class of securities. Diversification strategies shall be determined and revised periodically by the Audit Committee. In establishing specific diversification strategies, the following general policies and constraints shall apply: A. Portfolio maturities shall be staggered in a way that protects interest income from the volatility of interest rates and that avoids undue concentration of assets in a specific maturity sector. Securities shall be selected which provide for stability of income and reasonable liquidity. B. The Audit Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in securities other than repurchase agreements, treasury bill and notes, or insured and collateralized certificates of deposits. The Audit Committee shall conduct a semi-annual review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. VI. SELECTION OF BANKS AND DEALERS BIDDING PROCESS Depositories shall be selected through the City's banking services procurement process, which shall include a formal request for proposal (RFP) issued every two (2) years. In selecting depositories, the credit worthiness of institutions shall be considered, and the Director of Finance shall conduct a comprehensive review of prospective depositories credit characteristics and financial history. INSURABILITY Banks and Savings & Loans Associations seeking to establish eligibility for the City's competitive certificate of deposit purchase program, shall submit financial statements, evidence of Federal insurance and other information as required by the Director of Finance. PRIMARY DEALERS AND APPROVED LIST For brokers and dealers of government securities, the Audit Committee shall select only those dealers reporting to the Market Reports Division of the Federal Reserve Bank of New York, also known as "primary government securities dealers"„ unless a comprehensive credit and capitalization analysis reveals that other firms are adequately financed to conduct public business. All brokers and dealers must be authorized by the Audit Committee. Investment Officers shall not conduct business with any firm with whom public entities have sustained losses on investments or whom have been removed from the approved list by the Audit Committee. 5 • VII. SAFEKEEPING AND CUSTODY INSURANCE OR COLLATERAL All deposits and investments of City funds other than direct purchases of U.S. Treasuries or U.S. Agencies shall be secured by pledged collateral with a market value equal to no less than 100% of the deposits or investments less an amount insured by the FDIC or FSLIC. Evidence of the pledged collateral shall be maintained by the Director of Finance or a third party financial institution. Repurchase agreements shall be documented by specific agreement noting the collateral pledged in each agreement. Collateral shall be reviewed monthly to assure the market value of the securities pledged equals or exceeds the related bank balances. SAFEKEEPING AGREEMENT All safekeeping arrangements shall be in accordance with a Safekeeping Agreement approved by the Audit Committee which clearly defines the procedural steps for gaining access to the collateral should the City of La Porte determine that the City's funds are in jeopardy. The safekeeping institution, or Trustee, shall be the Federal Reserve Bank or an institution not affiliated with the firm pledging the collateral. The safekeeping agreement shall include the signatures of the City of La Porte, the firm pledging the collateral, and the Trustee. COLLATERAL DEFINED The City of La Porte shall accept only the following securities as collateral: A. FDIC and FSLIC insurance coverage; B. United States Treasuries and Agencies; C. Texas State, City, County, School or Road District bonds with a remaining maturity of ten (10) years or less with rating from a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; D. Other securities as approved by the Audit Committee SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of Finance or the City's independent auditors. DELIVERY VERSUS PAYMENT Treasury Bills, Notes & Bonds and Government Agencies' securities shall be purchased using the delivery versus payment method. That is, funds shall not be wired or paid until verification has been made that the collateral was received by the Trustee. The collateral shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. 6 • VIII. MANAGEMENT AND INTERNAL CONTROLS The Director of Finance shall establish a system of internal controls which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. Controls and managerial emphasis deemed most important that shall be employed where practical are: A. Control of collusion. B. Separation of duties. C. Separation of transaction authority from accounting and record keeping. D. Custodian safekeeping receipts records management. E. Avoidance of bearer-form securities. F. Clear delegation of authority. G. Documentation on investment bidding events. H. Written conformation of telephone transactions. I. Reconcilement and comparisons of security receipts with the investment subsidiary records. J. Compliance with investment policies. K. Accurate and timely reports. L. Validation of investment maturity decisions with supporting cash flow data. M. Adequate training and development of Investment Officials. N. Verification of all interest income and security purchase as sell computations. O. Review of financial condition of all brokers, dealers and depository institutions. P. Staying informed about market conditions, changes, and trends that require adjustments in investment strategies. 7 • Art. 842a BONDS-COUNTY, MUNICIPAL, ETC. • Tltle 22 sociations chartered under the laws of Texas or by Federal Savings and Loan Aseo ' - ti domiciled in Texas, theh such mortgages, bonds, consolidated bonds issued der the rm Credit Act of 1971, P.L. 92-181, and as thereafter amended, debenture notes, collate trust certificafeea or other such evidences of indebtedness, "insured counts," so issue nd so secured, or so acquired ,or insured, shall be regarded fo lnveatment purposes by ' surance companies as "Texas Securities," within the mean' g of the laws of Texas Bove 'ng such investments. The provisions this Act shall be cumulative of all other pr siona of the Civil Statutes of the Sta f Texas, affecting the investment of funds moneys by fiduciar- ies, guardians, adminl ators, trustees and receivers, buildi and loan associations, savings departments of b ks, incorporated and doing busin a under the laws of Texas, commercial banks, savings anka and trust companies, artered and doing business under the laws of Texas, insu nce companies of any d and character, chartered and transacting business under the 1 s of Texas, and al orporate creatures, organized and doing business under the laws of It is hereby declared to be the leg independent of all other provisions, this Act shall be declared unconatit the provisions hereof. Amended by Acts 1973, 83rd Leg., p. 1; 1 12 U.S.C.A. ¢ 1701 et seq. =12 U.S.C.A. ¢ 1424 et seq: ~ 12 U.S.C.A. ¢ 2001 et seq. 'to enact a separate provision of this Act' that any phrase, sentence, or clause of in no event affect the validity of any of ch. 465, §~S,~eff. June 14, 1979. Cross References School Depository Act, a rides provided for by this article as approv securities, see V.T. C,A. Education Code, 3.73(4)(B). Ark 842a-1. Iigations wholly or partly insured by United States r state, lnveat- , ment in Cross Re ences Cert' cafes of title for motor vehicles, disposi- tion nd investment of fees, see art. 668?-1, • § rol: ---~ Ark 842a-2. Public-Funds Investment Act .. ~ Short Tltle Sec. 1. This Act may be cited as the Public Funds Investment Act of 1987. Authorized Inrestments • Text of subsec. (a) as amended by Acts 1989, 71st Leg.; ch. J9, § 1 and Acts 1989, 71st Leg., ch. 628, ¢ 1 Sec. 2. (a) An incorporated city or town, a county, a public school district, a district or authority' created under Article III, Section 52(b)(1) or (2), or Article XVI, Section 59, of the Texas Constitution, an institution of higher education as defined by Section 61.003 of the Education Code, a hospital district, a fresh water supply district, or any nonprofit corporation acting on behalf.of any of those entities may; in accordance with this Act, purchase, sell, and invest its funds and funds under its control in the following: (1) obligations of the United States or its agencies and instrumentalities; ' . (2) direct obligations ~of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaran- teed or insured by the State of Texas or the. United States or its agencies and instrumen- talities; .. ~ .. •• • ~ ~ .. ~ • ~ (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having. been rated as to investment quality by a nationally recognized invest ment rating: firm and having • received a rating of not less than A, or its equivalent; • ~ 304 BONDS-COUNTY, MUNICIPAL, ETC. A,1'tr. 842a-2 Title 22 ,(6) certificates of deposit issued by state and national banks domiciled in this state that are: (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or •its succes- sor; or .. ~ .... ... • (B) secured by obligations that are described by Subdivisions (1}(4) of this subsection, which are intended to include all direct~ed'eral agency or instrumentality issued mortgage backed securities that have a market value of not less than the principal amount of the certificates or in any other manner and amount provided by law for deposits of the investing entities; (6) certificates of deposit issued by savings and loan associations domiciled in this state that are: ' (A) guaranteed or insured by the Federal Savings and Loan Insurance Corporation, or its successor, or •~ (B) secured by obligations that are described by Subdivisions (1}{4) of this subsection, which are intended to include all direct federal agency or instrumentality issued mortgage backed securities that have a market value of not leas than the principal amount of the certificates or in any other manner and amount provided by law for deposits of the ..investing entities; (7) prime domestic bankers' acceptances; • (8) commercial paper with a stated maturity of 270 days or less from the date of its issuance that either: (A) ie rated not less than A-1, P-1, or the equivalent by at least two nationally recognized credit rating agencies; or (B) is rated at least A-1, P-1, or the equivalent by at least one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state thereof; and (9) fully collateralized repurchase agreements having a defined termination date, se- cured by obligations described by Subdivision (1) of this subsection, pledged with a third party selected or approved.by the political entity, and placed through a primary govern- ment securities dealer, as defined by the Federal Reserve, or a bank domiciled in this state. ' Text of subset. (a) as amended by Acts 1989, 71st Leg., ch. 69J, § .¢, and Acts 1989, 71st Lehr., ch. 750, § 1 F~ Sec. 2.~ (a) An incorporated city or town,' a county, a public school district, an institution of higher education as defined by .Section 61.003 of the Education Code, any nonprofit corporation or public' funds investment pool created under The Interlocal Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes) acting on behalf of any of those entities, or a navigation district organized under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution may, in accordance with this Act, purchase, sell, and invest its funds and funds under its control in .the following: • (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are •unconditionally guaran- teed or insured by the State of Texas or the' United States; • (4) obligations of states, agencies, counties, citiea,~ and other political subdivisions of any state having been rated. as to investment quality by a nationally recognized invest- ment rating firm and having •received a rating of not less than A or its equivalent; (6) certificates of deposit issued by state and national banks domiciled in this state that are: .. ~•• (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its succes- sor; or. ... .. .. ,.. (B) secured by obligations that are described by Subdivisions (1}{4) of this subsection, which are intended to include all direct agency or•.instrumentality issued mortgage backed securities rated AAA by a nationally recognized rating agency, or by Chapter 726, Acts of 305 • • Al`t. 8425-2 BONDS-COUNTY, MUNICIPAL, ETC. Tltle. 22 the 67th Legislature, Regular Session, 1981 (Article 2629b-1, Vernon's Texaa Civil Statutes), and that have a market value of not less than the principal amount of the certificates; (6) fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by Subdivision (1) of this subsection, pledged with a third party selected or approved by the political entity, and placed through a primary govern- ment securities dealer, as defined by the Federal Reserve, or a bank domiciled in this state; and (7) certificates of deposit issued by savings and loan associations domiciled in this state that are: (A) guaranteed or insured by the Federal Savings and Loan Insurance Corporation or its successor; or (B) secured by obligations that are described by Subdivisions (1}(4) of this subsection, which are intended to include all direct federal agency or instrumentality issued mortgage backed securities that have a market value of not less than the principal amount of the certificates. (b) In addition to investment in obligations, certificates, or agreements described in Subsection (a) of this section, bond proceeds of an incorporated city or town, a county, a public school district, or a navigation district, or local revenue of an institution of higher education, may be inveated~ in common trust funds or comparable investment devices owned or administered by banks domiciled in this state and whose assets consist exclusively of all or a combination of the obligations described by Subsection (a) of this section. Common trust funds of banks domiciled in this state may be ,used if they: (1) are available; (2) comply with the provisions of the Internal Revenue Code of 1986 and applicable federal regulations governing the investment of bond proceeds; and (3) meet the cash flow requirements and the investment needs of the political subdivi- sion or institution. (c) In this section: (1) "Bond proceeds" includes but is not limited to proceeds from the sale of bonds and reserves and funds maintained for debt service purposes. - (2) "Prime domestic bankers' acceptances" means a bankers' acceptance with a stated maturity of 270 days or less from the date of its issuance that will be, in accordance with its terms, liquidated in full at maturity, that is eligible for collateral for borrowing from a Federal Reserve Bank, and that is accepted by a bank organized and existing under the laws of the United States or any state, the short-term obligations of which (or of a bank holding company of which the bank is the largest subsidiary) are rated at least A-1, P-1, or the equivalent by at least one nationally recognized credit rating agency. (3) "Repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and then sell back at a future date, obligations described by.Subsection (a)(1) of this section, the principal and interest of which are guaranteed by the United States or any of its agencies, in market value of not less than the principal amount of the funds disbursed. The term includes direct security repurchase agreements and, reverse security repurchase agreements. (d) In addition to the investments described by Subsection (a) of this section, an entity listed in that subsection may, in accordance with this Act, purchase, sell, and invest its funds and funds under its control in an SEGregistered, no-load money market mutual fund with adollar-weighted average portfolio maturity of 120 days or less whose assets consist exclusively of the obligations that are described by Subsection (a) of this section and whose investment objectives include seeking to maintain a stable net aseet~ value of $1 per share. No entity listed in Subsection (a) of this section is authorized by this Act to invest in the aggregate more than 80 percent of its monthly average fund balance, excluding bond proceeds, in money market mutual funds described in this subsection or to invest its funds or funds under its control, excluding bond proceeda,.in any one money market mutual fund in an amount that exceeds 10 percent of the total assets of the money market mutual fund. 306 BONDS-COUNTY, MUNICIPAL, ETC. Art. 842a-2 Title 22 ' Bide Sec. 3. (a) Investments under Section 2(b)~ of this Act may be made only after competitive bids are solicited from at least three banks as provided by this section. The bids may be solicited orally. ' (b) An incorporated city or town or a public school district must attempt to solicit bids initially from banks located within its boundaries. If there are not three banks available for the investments within the city's, ti»rn's, or public school district's boundaries, the city, town, or public school district may solicit bids from banks located within the county or counties in which the city, town, or public school district is located in addition to those banks, if any, that are located within the boundaries of the city, town, or public school district. If there are not three banks available for the investments within the boundaries of the city, town, or public school district, or of the county or counties in which it is located, the city, town, or public school district may solicit bids from any bank within the state in addition to those banks, if any, that are located within the boundaries of the city, town, public school district, county, or counties. (c) A county must attempt to solicit bids initially from banks located within its boundaries. If there are not three banks available for the investments within the county, the county may solicit bids from any bank within the state in addition to those banks, if any, that are located within the boundaries of the county. (d) An institution of higher education as defined by Section 61.003 of the Education Code or a navigation district must solicit bids from at least three banks located within the state. (e) A nonprofit corporation acting on behalf of an incorporated city or town, a county, a public school district, or an institution of higher education as defined by Section 61.003 of the Education Code shall follow the procedures identified in Subsection (b), (c), or (d) of this section, as applicable to the entity on behalf of which the nonprofit corporation is acting. , . .. (f) If a bank has notified a governmental entity or nonprofit corporation that it is unable or unwilling to bid for investments under Section 2(b) of this Act, the governmen- tal entity or nonprofit corporation that receives the notification may 'presume that the bank is unable or unwilling to bid for the investments until the bank notifies the governmental entity or nonprofit corporation otherwise in writing. Standard oC Cnre Sec. 4. Investments shall be made with judgment and care, under circumstances then prevailing, that persons of prudence, discretion, and intelligence exercise in the manage- ment of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Wr(tten Policies Sec. 5. (a) Investments shall be -made in accordance with written policies approved by the governing body. The investment policies must address liquidity, diversification, safety of principal, yield, maturity, and quality and capability of investment management, with primary emphasis on safety and liquidity. (b) A governing body may provide in its written policies that bids for certificates of deposit be solicited orally, in wrir:ipg, electronically, or in any combination of those methods. Nonapplication to Retirement Funds Sec. 6. This Act does not apply to the investment of funds under the control of a public retirement system, as defined by Section 12.001(2), Title 110B, Revised Statutes. ~ Renumbered as V.T.C.A. Government Code, § 802.002(2). Authority is Additionnl Sec. T. The authority granted by this Act is in addition to that granted by other law. Acts 1987, 70th Leg., ch. 889, §§ 1 to 7, eff. Aug. 31, 198?. Sec. 2 amended by Acts 1989, 71st Leg., ch. 628, § 1, eff. Aug. 28, 1989; Sec. 2(a) amended by Acts 1989, 71st Leg., ch. 39, § 1, eff. April 26, 1989; Acts 1989, ?1st Leg., ch. 693, § 4, eff. Aug. 28, 1989; Acta 1989, 71st Leg., ch. 7b0, § 1, eff. 307 • Ait't. 842a-2 BONDS-COUNTY. MUNICIPAL, ETC. Title 22 June 16, 1989; Sec. 2(b) amended by Acte 1989, 7 1st Leg., ch. 760, § 1, eff. June 16, 1989; Sec. 3(d) amended by Acts 1989, 71st Leg., ch. 760, § 2, eff. June 16, 1989; Sea 6 amended by Acts 1989, 71st Leg., ch. 628, § 2, eff. Aug. 28, 1989; Sec. 2(d) amended by Acts 1991, 72nd Leg., ch. 732, § 1, eff. Aug. 26, 1991. Historical and Statutory Notes _ Gaines County solid waste management, in- Acts 1989, 71st Leg., ch. 628, § 6 provides: vestments and reinvestments ea specified by this „ This Act takes effect immediately, except article, see art. 4477-7j. Navigation districts, investment of bond pro- that Subsection (d), Section 2, Public FLnds In- ceeds, see V.T.C.A. Water Code, § 60.347. vestment Act of 1987 (Article 842a-2, Vernon's political subdivisions group benefits program Texas Civil Statutes), as •added by Section 1 of this Act takes effeck (1) immediately with re- , investments, see V.T.C.A. Local Government , spect to institutions of higher education; and (2) Code, § 172.009. public Fhnds Collateral Act see art. 2529d. only if the conatitutionat amendment proposed , Texas High-Speed Rail Authority investment by the 71st Legislature, Regular Session,-1989; , of funds, see ark 6674v.2 § 20. [SJ.R. 69) authorizing local governments to in- , vest their funds as provided by law is approved by the voters with respect to all other entities. If that amendment is not approved, Subsection Notes of Decisions (d) of Section 2 has no effect for entities other Delegation of authority 2 than inatitutiona of higher education." Validity 1 Acts 1989, 71st Leg., S.J.R. b9 was approved by the voters at the Nov. 7, 1989 election. 1. Validity Title of Act: Insofar as this article purports to authorize An Act relating to the investment of public no t p ico ~ b funds. Acts 1987, 70th Leg., ch. 889. , vea ubl funda in ban-o riented money mar- ket mutual funds or other securities of private Cross References entities, it conflicts with article III, section 52, of College and university funds, investment ac- the Texas Constitution. Op.Atty.Gen.1988, No. JM-976. cording to this act, see V.T.C.A. Education Code, § 61.003(b). •' 2. Delegation of authority County funds, investments, see V.T.C.A. Local The Interlocal Cooperation Act, article Government Code, § 116.112. 4413(32c), V.T.C.S., does not authorize local Crime control and prevention districts, boards governments to delegate to another entity their may not invest funds otherwise than ea specified authority to make investments; nor does article by this article or art. 836 or 837, see art. 2370o-• 842a-2, V.T.C.S., or article 4419(34c), authorize 4, § 6.09. such delegation. Op.Atty.Gen.1986, No. JM-932. . ~ ~~ .. .. . , „- .. :.. .. ,,. • ORDINANCE NO. AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND MCELROY & SULLIVAN, L.L.P., ATTORNEYS AT LAW; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated; 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 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of January, 1992. CITY OF LA PORTE BY Norman L. Malone, Mayor ATTEST: Cherie Black City Secretary APP ED: c/!/ , Knox W. Askins City Attorney • • REQUEST FOR CITY COUNCIL_AGENDA__ITEM Agenda Date Requested: January_8, 1992 __ Requested By: Bob~L. Powell__ Department: Police Report - ______ Resolution _____ X Ordinance Exhibits: State of Texas Health Department Lease Contract SUMMARY & RECOMMENDATION We are requesting an ordinance approving and authorizing a lease agreement between the City of La Porte and Harris County for a public health unit and making various finding and provisions relating to the subject. Action Required by Council: Approval of the lease agreement Alternative: Do not approve. Discuss alternatives, Availability of Funds: General Fund______ Water/Wastewater __ Capital Improvement _ General Revenue Sharing _ Other (None required) Account Number: _ Funds Available: YES NO Approved for Ci_tY_Council Acxenda Robert T. Herrera DATE City Manager • • KNOX W. ASKINS JOHN D. ARMSTRONG November 12, 1991 Ms. Elaine Bonner Police Department City of La Porte Dear Elaine: ASKINS ~ ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P. O. BOX 1218 LA PORTE, TEXAS 77572-1218 TELEPHONE 713 471-1886 TELECOPIER 713 471-2047 I enclose an ordinance approving the renewal of the Harris County Health Unit lease. Please coordinate with Louis Rigby, on the liability insurance clause, Paragraph XII. Your-s very truly, ~~'~~°~ Rnox W. Askins City Attorney City of La Porte KWA:sw Enclosure • • ORDINANCE NO. AN ORDINANCE APPROVING AND AUTHORIZING A LEASE AGREEEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY FOR A PUBLIC HEALTH UNIT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated; 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 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this day of November., 1991. CITY OF LA PORTE BY Norman L. Malone, Mayor ATTEST: Cherie Black City Secretary APPROVED: i~ Knox W. Askin's City Attorney • f #39,867VBU-jaa LEASE AGREEMENT THE STATE OF TEXAS § COUNTY OF HARRIS § This LEASE AGREEMENT, made and entered into by and between CITY OF LaPORTE, a municipal corporation under the laws of the State of Texas, hereinafter designated "Lessor," and HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, hereinafter designated "Lessee"; W I T N E S S E T H• WHEREAS, Lessee is desirous of leasing the hereinafter described premises, and WHEREAS, Lessor is desirous of leasing said premises to the Lessee; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENT: That in consideration of the mutual covenants, agreements and benefits to both parties, it is agreed as follows: I. Subject to the terms and provisions hereinafter set forth, Lessor has rented and leased and by these presents does rent and lease unto Lessee for a term of twelve (12) months beginning November 1, 1991, and ending (unless sooner ended in accordance with the provisions hereof) on October 31, 1992, the following described premises, situated in Harris County, Texas, to-wit: That portion (consisting of approximately 2,500 square feet of floor space) of the first story outlined in red on the partial first story floor plan attached hereto as Exhibit "A" of that certain office building whose address is 911 South Eighth Street, LaPorte, Texas, said office building being located on the following tract or parcel of land, to-wit: Lots 10 thru 16, Block 164, in the City of LaPorte, Harris County, Texas, according to the map or plat thereof of record in Vol. 58 at page 460 of the Deed Records of Harris County, Texas. • Together with the right of ingress and egress to South Eight Street. II. As rental for the use of the premises, Lessee covenants and agrees to pay Lessor the sum of One Thousand One Hundred Twenty-five and No/100 Dollars ($1,125.00) per month. On or about the first (1st) day of each calendar month beginning with the calendar month of November, 1991, and ending with the calendar month of October, 1992, (unless this lease is sooner terminated in accordance with the terms hereof), the Lessor will submit to Lessee a statement for the rent for such calendar month and Lessee agrees to pay the same on or before the fifteenth (15th) day of such calendar month or within fifteen (15) days after the receipt of such statement, whichever is later. III. Lessor shall pay utility bills for water, gas and electricity incurred by Lessee in its use of the leased premises. IV. It is understood that said premises are to be used by Lessee for a Public Health Unit and/or other lawful purposes. V. It is expressly understood and agreed that during the term of this lease, or any extension thereof, Lessee and Lessee's employees, agents, contractors, guests and invitees shall have the right to use (with other tenants of said building) the lobby, hallways, restrooms and other common areas of said building, and also the driveways, parking area, walkways and entrances on the above described tract or parcel of land. VI. During the term of this lease, Lessor will, at its own expense, perform the following: A. Keep and maintain in good repair the exterior walls, exterior doors, exterior doorways, windows, roof, structural portions, heating equipment, air- conditioning equipment, plumbing, wiring and electrical equipment (including the installation and furnishing of light bulbs and other light producing elements), first story walls, first story ceilings, first story floors, first story doors, first story 2 • • doorways, first story restrooms and first story hallways of said building. B. Keep and maintain in good repair the lobby, elevators and entrance to the above mentioned building, and also keep the same neat and clean. C. Keep a supply of toilet paper and paper towels in the first story restrooms of said building. D. Use its best efforts to keep all persons using any part of the above mentioned building from making excessive noise, causing an offensive odor, or otherwise interfering with Lessee's use and enjoyment of the leased premises and the exercise of its rights hereunder. E. Keep and maintain in good repair the parking area, the driveways, walkways and entrances on the above described tract or parcel of land and also keep the same neat and clean. F. Operate the air-conditioning and heating equipment so as to maintain the air temperature in the leased premises between 70 and 75 degrees Fahrenheit between the hours of 7:30 A.M. and 5:30 P.M., of each and every day except Saturdays, Sundays and County holidays. However, should any State, Federal or Municipal law, rule or regulation applicable to said premises require the maintenance of the air temperature therein within a range other than that hereinabove specified, then the air temperature shall be maintained as near to the temperature range set forth above as may be permitted under such law, rule or regulation. G. Provide water for drinking, lavatory and toilet purposes. H. Maintain, or cause to be maintained, water, sanitary sewer, electric, gas and telephone lines to the leased premises. VII. Lessor will pay, before they become delinquent, all taxes and assessments which may be payable for, on, or in regard to, the leased premises, or any part thereof during said term. 3 • • VIII. Should a dispute arise as to Lessor's right, title and/or right to lease the leased premises, or any part thereof and/or Lessor's right to receive the rental payments herein reserved, then and in such event, the Lessee may withhold the rent herein reserved, but such rent shall continue to accrue and shall be payable by the Lessee to the party or parties entitled thereto after said dispute shall be settled either by court action or by settlement. IX. Should the leased premises or the above-mentioned building be destroyed or damaged, or the right of ingress and egress be impaired, so that the leased premises shall be thereby rendered unfit for use by Lessee, or should any governmental body, agency, department or official determine such building to be a fire hazard, or for any other reason whatsoever to be unsuitable for the use or uses for which the Lessee contemplates using same, then and in any such event the rent hereinbefore reserved shall not be due nor paid by the Lessee during the period of destruction or damaged condition, impairment, or unsuitability, and this lease may be terminated at the option of Lessee. Regardless of whether or not Lessee exercises its option to terminate this lease, in any such event, the rent for any month during which the leased premises are unfit or unsuitable for use by Lessee for a portion thereof shall be equal to the number of days the same was fit for use by Lessee times Thirty-Seven and 50/100 Dollars ($37.50), and if the rent for any such month has been paid in advance, then Lessee shall be entitled to a refund from Lessor of the excess amount paid. However, Lessee shall be obligated to pay rent only for each day the Lessee actually uses the leased premises. The phrase "actually uses," as used in this paragraph, means the use of the leased premises for the purpose the Lessee contemplates or intends to use same, and shall not include any limited use or uses such as (but not limited to) inspecting the leased premises, or leaving furniture and other property therein while waiting for repairs of such damage or other action to correct or otherwise remedy such damaged condition, impairment or unsuitability. X. Lessor agrees that all fixtures and all personal property created and/or placed in and on said leased premises by the Lessee may be removed by the Lessee at the termination of this lease, or any extension thereof, even though the same may be attached to the premises. 4 • • XI. In the event Lessee shall hold over and remain in possession of the leased premises herein leased after the expiration of this agreement without a written renewal thereof, such holding over shall not be deemed to operate as a renewal or extension of this agreement, but shall only create a tenancy from day to day at a rental rate of Thirty-Seven and 50/100 Dollars ($37.50) per day which day to day tenancy may be terminated at any time by either the Lessor or Lessee. XII. Lessor covenants and agrees that it will, at its expense maintain an owner's, landlord's and tenant's liability policy covering the leased premises with coverage in the amount of not less than One Hundred Thousand Dollars ($100,000.00) for injuries or death to any one person, not less than Three Hundred Thousand Dollars ($300,000.00) for injuries or death to more than one person and not less than One Hundred Thousand Dollars ($100,000.00) for any injury to or destruction of property in any one accident or occurrence, or in the amounts of the Lessee's maximum limitations of liability under Section 101.001 et. seq. (Vernon 1986) Texas Civil Practice and Remedies Code Annotated, as amended, whichever is greater. Said policy shall name both the Lessee and the Lessor as insured. XIII. Notwithstanding anything herein to the contrary or that may be construed to the contrary, it is understood and agreed that if Lessor refuses or fails to perform any one or more of its undertakings and obligations which are to be performed during the term of this lease, then and in that event Lessee shall have the right to terminate this lease upon ten (10) days' written notice given to Lessor. It is further understood that if Lessor refuses or fails to perform any one or more of its undertakings or obligations under this lease agreement, that Lessee shall have the right, but not the obligation, to perform, or cause to be performed, any one or more of said undertakings or obligations of the Lessor, and to deduct all costs and expenses thereof from the rental to be paid hereunder. The performance by Lessee of any one or more of the undertakings or obligations of the Lessor hereunder shall not be construed or held to be a waiver by the Lessee of any succeeding refusal or failure to perform such undertaking or obligation of the Lessor. It is further understood that Lessee's exercise of any of the rights or options under this paragraph shall not prejudice Lessee's right to recover damages which Lessee has sustained as a result of Lessor's refusal or failure to perform, and that the rights and options under this paragraph are cumulative with, and not in lieu of, other remedies provided by law. 5 ~~ • • XIV. Any notice permitted or required to be given to~ the Lessor hereunder may be given by registered or certified United States mail, postage prepaid, return receipt requested, addressed to City of LaPorte, P.O. Box 1115, LaPorte, Texas 77572-1115; and such notice shall be deemed given upon deposit of same in the United States mail as aforesaid. Any notice permitted or required to be given to the Lessee hereunder may be given by registered or certified United States mail, postage prepaid, return receipt requested, addressed to County Judge of Harris County, 1001 Preston, 9th Floor, Houston, Texas 77002; and such notice shall be deemed given upon deposit in the United States mail as aforesaid. XV. Lessor shall not take any action or recourse against the Lessee for any default in the performance of Lessee's obligations, or any breach of this lease agreement by Lessee, until thirty (30) days after Lessor has given Lessee written notice setting out in detail the type and nature of the default or breach, and the failure of Lessee to cure such default within such thirty (30) day period. XVI. Lessor covenants and agrees that Lessee, upon the several conditions herein set forth and upon payment of the rentals herein provided, and continued performance of the covenants and agreements herein contained, shall and may peacefully and quietly have and occupy the said premises for the term herein set forth. XVII. This instrument (including all exhibits which are attached hereto) constitutes the entire agreement between Lessor and Lessee. No oral or written representations or promises made by any person prior to or contemporaneous with the execution of this agreement shall be binding on either party hereto. This agreement may only be amended by written instrument signed by both parties. 6 ~:• •. ,; o -~ . ~ iZ .t .. ~~ . ,~ _ ~ .- e ~ ~ . - . r ~ ~ ..:- . - ^ .r ; ~ A. . J _^,' ~ - --~ ~ , ,_.. a ,; .~ ~. ~~: ~- r ~• ~~ .. • , 'i . r . ~ ~ ~' - . . ~. .~~ _ . o r . ii1~~ SU1i~ -- ~ . ;~ ,~ ,, o ' . ~ •. .--,~.r ~•_-. ~~• ~ ~ ~ti '~ • • _ _ - _- '~' • J i~ ' :. _ ' • ~_ _ • ' . ~ .•-"~-=1 _ f .rte 1 - Y^--~' - ~ r` • ,. - _ _. , ^' '_ - -_ .. - i ' _' - ~ ... C' J XVIII. • This lease shall be construed in accordance with the laws of the State of Texas. XECUTED in duplicate ~C'~R~-~.~ , 1991. originals, this APPROVED AS TO FORM ONLY: MIKE DRISCOLL County Attorney VALERIE B. UECKERT ` Assistant County Attorney HARRIS COUNTY ~t~ day of `~ By JON LIN SAY County Judge LESSEE ATTEST: City Secretary CITY OF LaPORTE By Mayor AUDITOR'S CERTIFICATE LESSOR I hereby certify that funds are available in the amount of $13,500.00 to pay the obligations of Harris County under and within the foregoing contract. ~~ TO J. TO KINS uditor H is County, T e x a s Registered with me on this ~~~ day of (/~fl~~/' 1991. /~ .- . E. McCAIN Building Superintendent 7 i • ORDER AUTHORIZING THE COUNTY JUDGE TO EXECUTE LEASE AGREEMENT BY AND BETWEEN HARRIS COUNTY. TEXAS, AND THE CITY OF LaPORTE THE STATE OF TEXAS § COUNTY OF HARRIS § On this the ,~~ day of Q 1991, at a regular meeting of the Commissioners Court of Harris County, Texas, sitting as the governing body of Harris County, upon motion of Commissioner seconded by Commissioner ~( _..QSL,_ , duly put and carried, IT IS ORDERED that County Judge Jon Lindsay be, and he is hereby, authorized to execute for and on behalf of Harris County a Lease Agreement between Harris County and the City of LaPorte for the lease of certain premises to be used for a Public Health Unit and/or other lawful purposes, at a rental rate of $1,125.00 per month, for a period of twelve (12) months, beginning November 1, 1991, said Lease Agreement being incorporated herein by reference and made a part hereof for all intents and purposes as though fully set forth herein word for word. PRESENTED T6 Commissioners Court Date 0 C T p 81991 --______ recorded Voi.,__,___ Rs~--~.aa R UEST FOR CITY COUNCIL AGEN ITEM Agenda Date Requested: December 9, 1991 Requested By: Louis Rigby Department: Report Exhibits: Ordinance No. Purchasin Resolution X Ordinance SUMMARY & RECOMMENDATION The Texas Revised Civil Statutes allow City Council to adopt an ordinance which provides that during the time an employee is receiving weekly compensation benefits, that employee may elect to receive accrued sick leave benefits in an amount equal to the difference in the weekly compensation that the employee was receiving prior to the claim. Action Required by Council: Approval of Ordinance No. adopting the provisions of Article 8309h, Section 5(c), Texas Revised Civil Statutes. Availability of Funds: General Fund Capital Improvement Other Account Number: Water/Wastewater General Revenue Sharing Funds Available: Yes No Approved for City Council Agenda Robert T. Herrera City Manager ~- $'9,2~ Date • ORDINANCE N0. AN ORDINANCE ADOPTING THE PROVISIONS OF ARTICLE 8309h, SECTION 5(c), WORRMEN'S COMPENSATION INSURANCE FOR EMPLOYEES OF POLITICAL SUBDIVISIONS, TEXAS REVISED CIVIL STATUTES; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council of the City of La Porte hereby adopts the provisions of Article 8309h, Section 5(c), Workmen's Compensation Insurance for Employees of Political Subdivisions, Texas Revised Civil Statutes, which reads as follows, to-wit: "(c) By a majority vote, the governing body of a political subdivision may provide that during the time an employee of a political subdivision is receiving weekly compensation benefits under this article that employee may elect to receive previously accrued sick leave benefits, whether statutory or contractual, in an amount equal to the difference in the weekly payments of compensation under this article and the weekly compensation that that employee was receiving prior to the injury or illness resulting in the claim, with a proportionate deduction in the employee's sick leave balance. The sum of weekly payments of compensation under this article and the amount of sick leave paid by the political subdivision may not exceed the amount of weekly compensation that the employee was receiving prior to the illness or injury that resulted in the claim. This section may not be construed to limit in any way the medical benefits to be paid to the employee, and no such sick leave plan may require an employee to take sick leave benefits before receiving benefits under the Texas Workers' Compensation Act (S.B. No. 1, Acts of the 71st Legislature, 2nd Called Session, 1989)." Section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated; 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 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. • ORDINANCE NO. PAGE 2 PASSED AND APPROVED, this 9th day of December, 1991. CITY OF LA PORTE ATTEST: Cherie Black City Secretary APP AVED: Rnox W. Askins City Attorney BY Norman L. Malone, Mayor • • ASKINS b, ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P. O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS JOHN D. ARMSTRONG January 3, 1992 Mr. John Joerns Assistant City Manager City of La Porte City Hall La Porte, Texas Re: Spencer Highway Water Line Easement Dear John: TELEPHONE 713 471-1886 TELECOPIER 713 471-2047 r~ ~ ~ ~n~~t~; ~~~.:~ ~ _ , f. :~::;~ JAN ~'~ 1~° ~aST. CITY MAi~ACEf~ ~F~~'R(; I enclose Resolution for City Council meeting of January 13, 1992, authorizing condemnation of ten foot (10') water line easement, on the three lots which Don Jones, the landman, was unable to reach agreement with the owners. All three of these lots have former beer taverns, and the owners were not willing to grant an easement to the City of La Porte for the water line, due to their beer license situation. I would suggest that you do the agenda request, so that you can explain the entire project to City Council. This Resolution is a necessary formality prior to the filing of condemnation suit. You very truly, nox W. Askins City Attorney City of La Porte KWA:sw Enclosure • • RESOLOTION NO. 92-1 WHEREAS, the City Council of the City of La Porte has found and determined that public necessity requires the location of a ten foot (10') wide public water line easement on the hereinafter described real property, in the City of La Porte, Harris County, Texas; and WHEREAS, the City Council of the City of La Porte has found and determined that a ten foot (10") wide easement over and across the hereinafter described real property is suitable and needed for such purpose, and that it is necessary to acquire same for a public water line easement; WHEREAS, the City Council of the City of La Porte deems it advisable to authorize, and does hereby authorize, Knox W. Askins, City Attorney of the City of La Porte, to represent the City of La Porte in the acquisition of the hereinafter described property: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: That the said Knox W. Askins, as City Attorney for the City of La Porte, be and he is hereby, authorized to negotiate with the owners of the hereinafter described land, concerning the acquisition by the City of La Porte, of the perpetual right, privilege and easement, with appropriate rights of ingress and egress and reasonable working area for construction and maintenance, to enter upon and construct, reconstruct, maintain, operate, inspect, replace, repair and remove, a twelve inch (12") water line and facilities, over and across the hereinafter described property, and located in Harris County, Texas, said easement being more particularly described as a ten foot (10') wide strip of land, immediately south of and contiguous to the right-of-way of Spencer Highway, based on one hundred feet (100') right-of-way width, the property being burdened with said ten foot (10') wide water line easement being more particularly described as follows, to wit: Lots 28, 29, and 30, Block 2, Spenwick Place, Section One (1), an addition in Harris County, Texas, according to the map or plat recorded in Volume 42, Page 64 of the Map Records of Harris County, Texas; • • RESOLOTION N0. 92-1 Page 2 at the fair market value for same, and, should said City Attorney, as the duly authorized representative of the City of La Porte, be unable to agree with such owners as to the fair market value of such public water line easement, then, and in that event, said attorney be, and he is hereby authorized and directed to file against all owners and lien holders, proceedings in eminent domain to acquire an easement over and across the above described property, for public water line easement purposes. PASSED AND APPROVED this the 13th day of January, 1992. CITY OF LA PORTE By: Norman L. Malone, Mayor ATTEST: Cherie Black, City Secretary APPR VED: `~ ~ Knox Askins, City Attorney i • CITY SECRETARY'S CERTIFICATE I hereby certify that the above and foregoing is a true and correct copy of a resolution, passed and approved by the City Council of the City of La Porte, at a regular meeting thereof, at which a quorum of said City Council was present, and voted in favor of the passage of said resolution. WITNESS MY HAND, this the day of January, 1992. Cherie Black, City Secretary THE STATE OF TEXAS $ COUNTY OF HARRIS ~ BEFORE ME, the undersigned authority, on this day personally appeared CHERIE BLACK, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, and in the capacity therein stated. WITNESS MY HAND, this the day of January, 1992. Notary Public, State of Texas Commission Expires: • CITY OF LA PORTE INTER-OFFICE MEMORANDUM JANUARY 9, 1992 TO: John Joerns, Assistant City Manager FROM: Phil Hoza, Engineering Tech -' SUBJECT: Status of the Proposed 12" Diameter Water Line Along Spencer Highway CLP Project No. 89-6105 Final design is approximately 95% complete on the above referenced project, items remaining will be revisions based on staff reviews and comments from other agencies. Because of the limited (8.5 feet) space to remain within the existing right of way between the back of the proposed curb and property line and a preliminary cost estimate which indicated a possible savings of $87,000.00, the City instructed the Engineer to route the line in a proposed 10 foot easement immediately south and parallel to Spencer Highway. This would allow for a more effective means of providing maintenance and repair to the line as well as eliminate conflicts with existing utilities due to overcrowding within the right of way. The proposed 10 foot easement necessitated easement acquisition from thirty (30) individual property owners. With the assistance from the City Attorney's office and the office of Jim Burgin & Associates, Inc., we've acquired all of the easements with the exception of the following: 1) Ms. Hazel Flannery 2) Earnest Weatherford 3) Brenda Kay Christoph Their refusal to execute such an easement with the City has prompted staff to recommend condemnation action to prevent any further delay on the project. In addition, staff is continuing to work out agreements with Harris County Flood Control and the Houston Lighting and Power Company in order to cross their facilities. These agreements should be completed well in advance of construction. The City initially budgeted $38,500.00 to cover expenses associated with these easement acquisitions. To date, $16,488.00 has been spent. If you have any questions, please feel free to call. • • REQUEST FOR CITY COUNCIL AGENDA ITEM AGENDA DATE UESTED Januarv 13. 1992 REQUEST Jeff Litchfield DEPARTMENT Director of Finance REPORT XX RESOLUTION ORDINANCE EXHIBITS: Resolution 92-02 Memo from Director of Finance Copy of TexPool Information Statement SUMMARY AND RECOMMENDATION In 1989, the State of Texas authorized municipality participation in local government investment pools. A local government investment pool is an efficient method for public entities to combine their idle cash to maximize interest income. There are several local government investment pools operating in the State of Texas. After reviewing several of them, we believe that TexPool, which is managed by the State Treasurer, to be one of the best. Their emphasis is on safety of the principal, liquidity of the investment and finally yield. This matches our City's philosophy. Their eligible investments are in accordance with the Public Funds Investment Act of 1987, which also follows the City's Investment Policy. There are currently over 600 public entities who are members of TexPool. TexPool had an average daily invested balance of over 2 billion dollars in 1991. I have analyzed their yield and find that they are consistently higher than the T-Bill yield. We believe that it is in the City's best interest to participate in TexPool. Participation in the fund will be dependent on current market conditions. In reviewing their performance for the past year, approximately 50$ of the time, TexPool had interest rates that were better than we were able to receive elsewhere. ACTION REQUIRED BY COUNCIL: Approve or deny the passage of Resolution 92-02 AVAILABILITY OF FUNDS: GENERAL FUND UTILITY FUND OTHER ACCOUNT NUMBER: N/A FUNDS AVAILABLE: YES NO APPROVED FOR CITY COUNCIL AGENDA ROBERT T HERRERA CITY MANAGER ~-s-aa DATE ~~ L RESOLUTION 92-0~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, AUTHORIZING PARTICIPATION IN THE TEXAS LOCAL GOVERNMENT INVESTMENT POOL "TEXPOOL" WHEREAS, the City of La Porte, Texas is a political subdivision of the State of Texas (the "Participant") and is empowered to delegate to a public funds investment pool the authority to invest funds, to act as a custodian of investments purchased with local investment funds; and WHEREAS, the Treasurer of the State of Texas acting by and through the Texas Treasury Safekeeping Trust Company (the "Trust Company") has created "TexPool", a public funds investment pool to effectuate the goals of providing investments at the highest possible yield and maintaining complete safety of the funds of the Participant, NOW, THEREFORE, be it resolved as follows: 1. That the City of La Porte shall establish an account in its name with the Trust Company's Local Government Investment Pool, "TexPool", for the purpose of transmitting loca_1 funds for investment by the Trust Company in TexPool. 2. That the following individuals, whose signatures appear below are officers or employees of the Participant and are hereby authorized to transmit funds to the Trust Company for investment in TexPool and are each further authorized to withdraw funds from time to time, to issue letters of instruction, and to take all other actions deemed necessary or appropriate for the investment of local funds: Name Jeff Litchfield Signatur Title Director of Finance Name Linda Stubbs Signature ,( /1~ ~. Title Finance Officer Name Rick Overgaard Signature ' Title Treasurer 3. That this resolution and its authorization shall continue in full force and effect until amended or revoked by the Participant and until the Trust Company receives a copy of any such amendment or revocation, until such time the Trust Company is entitled to rely on same. This resolution is hereby introduced and adopted by the Participant at its regular meeting held on the 13th day of January, 1992. City of La Porte ay ATTEST: City Secretary APP City Attorney Norman Malone, Mayor • • CITY OF LA PORTE INTER-OFFICE MEMORANDUM T0: Robe T. Herrera, City Manager FRO Jeff Litchfield, Director of Finance DATE: January 7, 1992 SUBJECT: Participation in TexPool TexPool is a local government investment pool managed by the State Treasurer. It is a very efficient means for the City to increase the yield on its portfolio while at the same time maintaining the safety and liquidity of principal that is required by a prudent cash manager. In order for us to participate in TexPool, the City Council needs to adopt an ordinance approving the Investment Policy and also pass a resolution that allows us to participate. I plan to present both for Council consideration at the January 13, 1992 City Council meeting. The operation of TexPool is very simple. We will be able to wire funds back and forth between the City and the pool on a daily basis. Investments earn interest on a daily basis and is credited to the fund at the end of the month. The attached chart shows a comparison of the monthly interest average for the City and TexPool for the last fiscal year. As you can see, there are six months where the bar that represents TexPool's rate exceeds the line that represents the City's rate. If we had been a member of TexPool during the last year, those would have been the months where we would have participated in the fund. In retrospect, I went back and calculated our investments as if we had participated in TexPool during those months and found that we would have earned an additional $56,000. The goals of TexPool are set forth in the attached information statement and their eligible investments follow the same state law as our proposed investment policy. To give you a further example of yield, the quote for a T-bill purchased today is 3.95 and the TexPool rate is 5.05. INTEREST RATE COMPARISON FISCAL YEAR 1990-91 INTEREST RATE 0.085 0.08 0.075 is ': ... _.......__ 0.07 _........ 0.065 _........ 0.06 __ ,: 0.055 '' 0.05 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP MONTHS n CITY ACTUAL TEXPOOL Information Statement November 15, 1989 TEXAS LOCAL GOVERNMENT INVESTMENT POOL TEXAS TREASURY SAFEKEEPING TRUST COMPANY Texas Treasury Safekeeping Trust Company Ann W. Richards, State Treasurer TexPool Advisory Board Gerald Brashears Deputy Superintendent Alief Alief ISD Perry Cox Assistant Superintendent Grapevine Grapevine-Colleyville ISD William P. Harrison City Director of Finance College Station Charles E. Jones Bell County Treasurer Belton Lee Maness City Director of Finance North Richland Hills Judy Monk Randall County Treasurer Canyon Linda Patterson City Treasurer Fort Worth Corrine Steeger City Treasurer Austin Fred Werner City Director of Finance Wichita Falls Administration Texas Treasury Safekeeping Trust Company P. O. Box 12608, Capitol Station Austin, Texas 78711 1-800-234-LGIP Fax # (512) 440-4749 Richard E. Scott E. Wood Rogers Winsome A. Jean Director Administrator Director Trust Operations Local Government Investment Pool Investment Division • On September 1, 1989, local government investment pools became author- ized investments for the majority of public entities in Texas. The Interlocal Cooperation Act (Tex. Rev. Civ. Stat. Ann. art. 4413 et sue.) was amended by the 71st Texas Legislature to facilitate the creation of local government investment pools in Texas. This act permits the creation of investment pools to which any political subdivision ("local government") in Texas may delegate, by contract, the authority to make investments purchased with local invest- mentfunds and to hold legal title as custodian of the investment securities. In 1986, the 69th Texas Legislature authorized the State Treasurer to incorporate aspecial-purpose trust company called the Texas Treasury Safekeeping Trust Company (the "Trust Co."). The Trust Co. has direct access to the services of the Federal Reserve Bank and performs other trust company activities. It is specifically authorized to manage, disburse, transfer, safekeep, and invest public funds and securities more efficiently and eco- nomically" (Sec.404.102 et sec .., Texas Government Code). The Trust Co. has created the Texas Local Government Investment Pool ("TexPool") as a public funds investment pool. Eligible participants include, but may not be limited to, state agencies, cities, counties, villages, utility districts, school districts, junior college districts, community college districts, other special districts, arrd any legally constituted political subdivision in the State of Texas. GOAL AND OBJECTIVE The goal of TexPool is to offer the attractive yields of various authorized short-term investments, such as repurchase agreements, to local govern- ments. Local governments have been reticent to enter these sophisticated investment markets for lack of staff expertise and the costs associated with -1- developing this expertise. The Texas State Treasury has been on the leading edge of safe and innovative cash management for state government, and it is TexPool's goal to offer these economies of scale and short-term investment expertise to local governments. The objective of TexPool is to provide a safe environment for the short- term investment of public funds. Safety is the prime responsibility of every public investment officer. INVESTMENT OBJECTIVES AND POLICIES TexPool is established as a trust fund, segregated from all other trustors, investments, and activities of the Trust Co. Only local governments having contracted to participate in TexPool ("Participants") have an investment interest in its pool of assets. The primary objective of TexPool is to provide a safe environment for the placement of public funds in short-term, fully collateralized investments. While safety is the primary goal of TexPool, liquidity is a simultaneous objective. After meeting the first two objectives, TexPool seeks to provide a competitive yield for the invested funds. Investments of TexPool are only those authorized by the Texas statutes governing pools for local governments. The portfolio may include the follow- ing: Obligations of the United States or its agencies and instrumen- talities; 2. Direct obligations of the State of Texas or its agencies; 3. Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or -2- the United States; 4. Obligations of states, agencies, counties, cities, and other politi- cal subdivisions of any state having been rated as investment quality by nationally recognized investment rating firms and having received a rating of not less than "A" or its equivalent; 5. Certificates of deposit issued by state and national banks domi- ciled in this state that are: . A. Guaranteed or insured by the Federal Deposit Insur- ance Corporation or its successor; or B. Secured by obligations that are described by subdivi- sions 1-4 of this subsection,which are intended to include all direct agency or instrumentality issued mortgage- backed securites rated "AAA" by a nationally recognized rating agency, or by Chapter 726, Acts of the 67th Legis- lature, Regular Session, 1981 (art. 2529b-1 Vernon's Tex. Civ. Stat.), and that have a market value of not less than the principal amount of the certificates; 6. Fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by subdivi- sion 1 of this subsection, pledged with a third party selected or approved by the political entity, and placed through a primary government securities dealer, as defined by the Federal Re- serve, or a bank domiciled in this state; 7. Certificates of deposit issued by savings and loan associations domiciled in this state that are: A. Guaranteed or insured by the Federal Savings and Loan Insurance Corporation or its successor; or -3- B. Secured by obligations that are described by Subdivi- sions 1-4 of this subsection which are intended to include all direct federal agencies or instrumentality issued mortgage-backed securites that have a market value of not less than the principal amount of the certificates; and 8. Such other investments as may be authorized by Tex. Rev. Civ. Stat. art. 842a-2, as amended. TexPool is designed to be highly liquid in order to give participants immediate access to their account balance. Therefore, the weighted average maturity of the investments of TexPool will not exceed 120 days. The Treasury's Invest- ment Division determines the actual weighted average maturity within this 120-day maximum based upon market conditions and previously stated objectives of TexPool. Only selected broker/dealers and Texas financial institutions are utilized for investment activities. The approved list is subject to the determination and review of the Treasury's Investment Division. Any available funds that are un-invested are held in the Federal Reserve Bank account of the Trust Co. This investment program provides for the total safety of TexPool. The investment policy for TexPool is submitted to the Advisory Board for periodic review and approval. CUSTODIAN OF SECURITIES All investment assets and collateral will be in the sole possession of the Trust Co. in its book-entry safekeeping account at the Federal Reserve Bank. Only extraordinary events (i.e, late investments or Federal Reserve System problems) could temporarily affect the location of TexPool's assets. -4- The Trust Co. is one of only two state-owned trust companies that has direct access to the Federal Reserve System. TRANSFER OF FUNDS The transfer of funds is accomplished through the most modern collection techniques. TexPool uses Automatic Clearing House bank transfers (the same system currently being used for state and federal payments) for most transactions. Wire transfers are used for those emergency transactions requiring immediate transfer. To make a deposit or withdrawal request, the participants must call the TexPool data collection center and enter partici- pant's account number and password using atouch-tone telephone. With proper entry of the password, the voice information system will repeat all transaction information and give the participant a confirmation number. In addition to the touch-tone phone and voice systems, acomputer-based system is available to further automate participant instructions, inquiry, and record keeping. The voice system will also accommodate participants using rotary telephones. Deadlines for instructions: 12:30 p.m. for ACH transfer (funds transfer the following day) and 10:00 a.m. for wire transfer (for same day transfer). For security purposes, funds will only be transmitted to or from one particular bank account in the name of the participant. The participant specifies the single account at the local bank in which the transaction (in or out) will occur. ADVISORY BOARD In seeking to best serve local governments in Texas, the Treasurer has established a TexPool Advisory Board composed of representatives of the many groups eligible to participate in TexPool: county government, munici- -5- pal government, school districts, utility districts, specially established govern- mental entities and political subdivisions of various geographic locations, governmental purposes, and sizes. Advisory Board members serve three-year staggered terms at the specific invitation of the Texas State Treasurer. There will be at least 10 members on the Advisory Board. Advisory Board members review and approve TexPool's investment and ac- counting activity, development plans, and fee schedule. They will issue periodic reports to the participants regarding these matters and other issues. The Advisory Board will receive a report from the State Auditor's office following that office's annual review of the Trust Co.'s accounting, manage- ment, and efficiency. The Advisory Board serves without compensation. Expenses to attend meetings of the Board or other travel authorized by the Board will be reimbursed in amounts not to ekceed the limits established for state employee travel. These are normal expenses of TexPool and are included in the Basic Services Fee. LEGAL COUNSEL AND INDEPENDENT ACCOUNTANTS The General Counsel of the Texas State Treasury will serve as the General Counsel to TexPool. TexPool is subject to annual review by the Texas State Auditor's Office. Additionally, the Treasurer may, from time to time, employ other legal, accounting, financial, or other professionals to assist in meeting TexPool's goals and objectives. -6- EXPENSES OF TEXPOOL The Trust Co. seeks to recover only the costs of operating TexPool. The Trust Co. has no "profit motive" in establishing any fees for management or other services. From time to time the Trust Co. will review its actual incurred costs to operate TexPool. From this information the Trust Co. will prepare an analysis of the operating costs anticipated for the coming months. This analysis will be used to establish a management fee for basic services provided to the participants ("Basic Services Fee"). The Basic Services Fee includes expenses incurred by TexPool to accomplish deposits and withdrawals made by ACH or wire transfer, investment and collateral management, transaction confirmations, monthly account state- ments, Advisory Board expenses, general office expenses, and personnel payroll and benefit expenses needed to accomplish the goals and objectives of TexPool. Specialized services, research, and reports are also available at their individual costs. There is no charge or fee if research relates to or reveals a Trust Co. error. All fees are directly and automatically charged against the participant's account. The Basic Services Fee is calculated as a reduction in TexPool's total daily income so that only net income is credited to the participant's account. Fees for special services are charged to the account as they are incurred or performed. The participant's monthly statement will itemize all transactions and fees. The calculation of the Basic Services Fee is as follows: Example: Calculation of a Basic Services Fee of .25% (one quarter of one percent) annually -7- Thus, (1 + .0025)1 ~ -1 = .000006935 is the daily fee factor The Basic Services Fee will be based on cost recovery. As the fund balance grows, the Basic Services Fee will be adjusted as reviewed by the Advisory Board. The current rate schedule approved by the Advisory Board is as follows: ' Up to a Total TexPool Balance of: Basic Services Fee (Annualized) $ 100,000,000 .002 $ 250,000,000 .0017 $ SOO,000,U00 .0005 $ 1,000,000,000 .0003 $ 5,000,000,000 .0002 The daily fee will be applied to the total balance of "funds held" by TexPool (i.e. sum of all participant balances) and deducted from gross distributable in- vestment income, as follows: <less> plus Accrued Interest on Investments Accrual of Premium on Investments Accretion of Discount on Investments Gross Distributable Investment Income A schedule of fees for basic and special services will accompany the partici- III pation agreement. Gross Distributable Investment Income <less> Basic Services Fee Net Investment Income -8- Any costs, including loss in investment income for TexPool, associated with ACH returns (insufficient funds in the participant's local bank account) or failure to transmit a promised wire for deposit will be charged against the participant's account, unless said failures were beyond the control of the participant (example: Federal Reserve System failure, ACH system error). The Trust Co. will make every effort to mitigate any impact from these events. INTEREST ALLOCATION Interestwill be allocated dailyand credited to participants' accounts monthly. Allocations will be determined by each participant's fund balance in TexPool. The following calculations and formula apply: Allocation Factor = Net Investment Income (Total Funds Held) - (Total Un-investable Deposits) Un-investable deposits are deposits received late in the business day after the closing of the investment markets. Interest income will be credited to each participant's account using the allocation factor: Participant Interest (Funds Held) - (Un-investable Deposits) Income = times Allocation Factor -9- REPORTS AND PERFORMANCE INFORMATION The Trust Co. will remit, by United States Postal Service, a confirmation of each transaction within twenty-four hours from transaction execution. The Trust Co. will forward to each participant a detailed report of all transactions and activity in the participant's account for the previous month within the first five business days of the next month. Additionally, the Trust Co. will permanently maintain this same account report in physical or computer data form. This information will be available to assist in any participant's special research or report requests. From time to time TexPool may quote its "yield" and/or its "total return" in informational or enrollment literature or other media. Both the yield and the total return of TexPool are based on historical earnings and are not intended to indicate guarantees of future performance. All yield information reported to participants will include the disclosure of the period used in the calculation of the yield; for example, the previous 1 day, 7 days, l month, or 1 year. Yield calculations will assume a 360-day year and be compounded daily. The quotation of the previous year's return is a statement of actual performance and will be based solely on actual income received. All other periods are calculated to a comparable 1-year rate by taking the average of the "alloca- tion factors" for the particular period and compounding the result by 360. Such calculations will always reflect the deduction of all fees received by TexPool. Yield information is available through TexPool's toll-free phone number: 1-800-234-LGIP. A complete detail of all investment activity for TexPool is available for public examination in the Trust Co.'s office in Austin during regular business hours. These reports and summary information are presented to TexPool's Advi- sory Board. The Trust Co. will keep confidential all historical account information and current balance of each participant. However, the Trust Co. is subject to the Texas Open Icecords Act. -10- EST FOR CITY COUNCIL AGEN ITEM Agenda Date Requested: Januar 1992 Requested By: S. Gillett Department: Public Works XXXX Report Resolution Exhibits: Letter Requesting Extension of Lease Option Plat of Proposed Lease Area Ordinance SUMMARY & RECOMMENDATION On December 12, 1988, the City Council approved an amendment to the lease held by Cliff Hyde Flying Service, Inc. that granted an option, in the form of a right of first refusal, for forty five (45) tiedowns and the one hundred by one hundred foot (100`x100') tract shown on the attached exhibit, until December 31, 1989, renewable until December 31, 1990. A five hundred dollar ($500.00) option fee was paid for the two (2) year option. Cliff Hyde Flying Service, Inc. exercised its option to renew in December 1989, and subsequently requested an additional year, approved by Council December 12, 1990. The latest option expired December 31, 1991. The Lessee has delayed leasing the property due to the current Airport Master Plan Update. As shown on the attached plat, property currently leased by the Texas Air National Guard has been identified in the Plan as desirable for the future development of the southern quadrant of the Airport. This parcel is adjacent to the parcels in the Option Agreement, and Cliff Hyde Flying Service, Inc. has requested an additional year to exercise the option. This will allow Cliff Hyde to adequately plan for future facilities in this area. Cliff Hyde Flying Service has offered two hundred fifty dollars ($250.00) for the additional one (1) year option. Action Required by Council: Approve the extension of the option described in the Lease Amendment approved December 12, 1988 between the City of La Porte and Cliff Hyde Flying Service, Inc. for one (1) year, expiring December 31, 1992, for two hundred fifty dollars (5250.00). Avai a i ity o Fun s: _ General Fund Water/Wastewater Capital Improvement General Revenue Sharing Other Account Number: N/A Funds Available: YES NO Approved for City Council Agenda Robert T. Herrera DATE City Manager r • • DEC 15 I~i~i orr~cE Mr. Bob Herrera City Manager City of La Porte P.O. Box 1115 La Porte, Texas 77571-1115 Dear Bob: Please reference between the City Inc. We wish to renew tract and the 45 in Paragraph III Enclosed is our fee. If you are in need of any additional information, please call 471-0265. RECEIVED "Amendment to Lease", dated December 12, 1988, of La Porte, Texas and Cliff Hyde Flying Service, and extend ourioption to lease the 100' x 100' tie-downs until December 31, 1992, as outlined of the above mentioned "Amendment to Lease". check in the amount of $250.00 to cover renewal CLIFF HYDE FLYING SERVICE, INC. AIRLINE PILOT TRAINING LA PORTE AIRPORT • (713) 471-0265 11015 WEST MAIN • LA PORTE, TEXAS 77571 December 13, 1991 Sincerely, .~ Clif Hyde President CH/bkt Encl: Check • U s ~ REQUEST FOR CITY COUNCIL AGENDA ITEM AGENDA DATE REQUESTED January 13, 1992 REQUESTED Jeff Litchfield DEPARTMENT Director of Finance X REPORT RESOLUTION ORDINANCE EXHIBITS: Ordinance SUMMARY AND RECOMMENDATION The City's fiscal year ended September 30, 1991. At that time, there were 78 outstanding purchase orders. The purchase orders represent goods that were ordered and budgeted funds that were committed to procure items necessary to operate the City. We need to re-establish these items for the new fiscal year. This action will have no effect on the working capital of the various funds. A breakdown of the "open" purchase orders by operating fund are as follows: Fund Number Amount General Fund 58 $ 73,392 Utility Fund 10 6,198 Sylvan Beach Fund 1 1,680 Vehicle Replacement 1 176,653 Vehicle Maintenance 4 1,456 Golf Course 4 16,460 Total 78 $ 275,839 The above amendments will not have an impact on the projected working capital balances for the year because they were all projected to be expended in the last fiscal year. ACTION REQUIRED BY COUNCIL: Instruct the Director of Finance to amend the various operating budgets as follows: General Fund $ 73,392 Utility Fund 6,198 Sylvan Beach Fund 1,680 Vehicle Replacement 176,653 Vehicle Maintenance 1,456 Golf Co urse 16,460 AVAILABILITY OF FUNDS: GENERAL FUND UTILITY FUND ACCOUNT NUMBER: NSA FUNDS AVAILABLE OTHER YES NO APPROVED FOR CITY COUNCIL AGENDA b 1 ~ ~S`~ Z ROBERT T HERRERA DATE CITY MANAGER • • REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 1-13-92 Requested By: Ervin Griffith Department: Comm. Develop. XXX Report Resolution Ordinance Exhibits: 1) Original bid tabulation 2) Bid proposal from Follis Construction for installation of wheel chair ramps and repair of curbs and sidewalks on Main Street. ----------------------------------------------------------------- ----------------------------------------------------------------- SUMMARY & RECOMMENDATION The City of La Porte, in the FY 1991 budget, allotted $40,000.00 to be used for the installation of wheelchair ramps on Main Street. Also to be included was repair to Main Street curbs and sidewalks. In July of 1991, Council authorized granting a contract for repairs to Royalty Construction, the only vendor responding to the original bid invitation. This contract was in the amount of $29,690.00. Royalty went out of business before beginning any repair work. No City funds were paid to Royalty Construction. The $40,000.00 allotted for the Main Street project has been carried over into the FY 1992 budget. Our bidding requirements have been satisfied, therefore, we visited with three (3) additional firms (Taylor and Taylor Concrete Construction, Inc., Krupar Construction, Inc., and Follis Construction, Inc.) to solicit proposals. Only one (1) contractor would agree to do the work. Staff has received a subsequent proposal from Follis Construction. The Follis bid for the same repairs is for $38,379.00. This is within the budgeted amount. Follis Construction is a well established, La Porte based contracting company with a great deal of paving work experience. Action Required by Council: Consider award of contract to Follis Construction in the amount of $38,379.00 for Main Street sidewalk repair and wheelchair ramps. ---------------------- ---------------------- Availability of Funds: General Fund XX Capital Improvements Other Sharing Water/Wastewater General Revenue Account No.: 025-600-600-804 Funds Available: X Yes No ----------------------------------------------------------------- ----------------------------------------------------------------- Approved for City Council Agenda Robert T. Herrera Date City Manager ,~ ~ • ~. BID PROPOSAL FOR UNIT PRi E CONTRACT Proposal of (hereinafter called "Bidder")* a corporation, organized and existing under the laws of the State of ,* a partnership, or an individual doing business as ~ c~~1~!-t C.°t~~~TQ~ ~r-~;o~ the City of La Porte, Texas (hereinafter called "Owner"). - Ladies and Gentlemen: The Bidder, in compliance with your invitation for bids for the construction of T~4ain Street Sidewalk and Curb Replacement and Corner Wheelchair Access Ramps for the Ciry of La Porte having examined the plans and specifications with related documents and the site of the proposed work, and being familiar with all of the conditions surrounding the ..construction of the proposed project including the availability of materials and labor, hereby proposes to furnish all labor, materials and supplies and to construct the project in accordance with the contract documents, within the time set forth therein, and at the prices stated in the attached Bid Schedule. These prices are to cover all expenses incurred in performing the work required under the contract documents, of which this proposal is a part. Bidder hereby agrees to commence work under this contract on a date to be I specified in ~zitten "Notice to Proceed" of the Ov+mer and to fully complete the project within consecutive calendar days thereafter as stipulated in the specifications. Bidder further agrees to pay as liquidated damages, the sum of $50.00 for each consecutive calendar day thereinafter as hereinafter provided in Paragraph SC-6 of the Special Conditions of the Agreement. Bidder acknowledges receipt of the following addendum: ~l ~ BP-I • • AL~rcRNATE r BASE PROPOSAL: Bidder agrees to perform all of t}te work shove on the plan . ,` d further described in the spec'{fications for the sum of~w`G-~~ ~_1~-i- ~-l~o.~~c~ ~ ~~ ~.. dC ~ liars ($ 2 ' o eG (Amount shall be shown in both words and figur s. Tn case of discrepancy, t e amount shown in words will govern.) Patterned concrete with color for bid items 6-12 (wheelchair ramps). Lump sum price for each = $ '2 ~~o `~--% ~'u-'a ~ ~o~~r ~ ~,~ ~ ~~ ~ . TOTAL ALTERNATE: $ 26v `•'~~" ~lcr~/~/v- ~C~~r~ r/,~., -~ Bidder understands that the Owner reserves the right to reject any or all bids and to waive any informalities in the bidding. ' The bidder agrees that this bid shall be good and may not be withdrawn for a period of thirty (30) calendar days after the scheduled closing time for receiving bids. Upon receipt of written notice of the acceptance of this bid, bidders will execute the formal contract attached within ten (10) days and deliver a Surety Bond or Bonds as required by the General Conditions. The bid securi attached in the sum of ($ ' ~ ) is to become the property of the Owner in the event the contract and bond are not executed within the time above set forth, as liquidated damages for the delay and additional expense to the Owner caused thereby. Respectfully submitted 1 j U'n ~ a-~-, Signature of Authorized Person) (SEAL) ~?W~;~;~1~ (Title) 1~ ~"~, i~ ~~~ I ~~. J ~ (Business Address) (City) (State) (Zip Code) I~~~ ~~ 1n' i J t U B P-4 • ITEI~i DESCRIPTION MOORS & MOORS CONTRACTORS MCKEY CONSTRUCTION ROYALTY CONSTRUCTION DIRI<.IiARMSON , CONSTRUCTION UNIT TOTAL UNIT TOTAL TOTAL UNIT UNIT TOTAL t) 6" Concrete Curb // ~~.tv ~ .QBD 2) 8' ConcreleCurb -/J pBO 3) Removal of Existing Curb ;~. 0 7 D O 4) ~ Removal of Existing Sidewalks ~ G ~~ ~ S) Replacement of Concrete Sidewalks ,~. 9S /D 7 D 6) Wheelchair Ramp at N.W. Corner 2nd end Maln `~ 00 6a) Alternate '^ ~, ~ - Wheelcair Ramp al N.E. Corner 2nd and Main = ~ '~ 7a) Alternate =~ 8) Wheelchair Ramp al S.W. Corner 2nd and Main ~• ~, 8a) Allernale ~ ~~ 9) Wheelchair Ramp at S.E. Corner 2nd and Maln ,.=6d 9a) Allernale ^ ~', 10) Wheelchair Ramp al N.W. Corner 1st and Maln ` ~~ 10a) Allernale ~~ 11) Wheelchair Ramp at N.E. Corner 1st and Maln '-90 - 11a) Allernale "' /v 12) Wheelchair Ramp at N.W. Corner Broadway Q Maln ' '~-~ 12a) Alternate ~~ :- .4 , ' I ° f n^ L~ t ( ' ', t . ~ /''~~' ~/ Y. • • SID PROPOSAL FOR UNIT PRICE CONTRACT Proposal of FOLLIS CONSTRUCTION (hereinafter called "Bidder")* a corporation, organized and existing under the laws of the State of mFxA~ ,* a partnership, or an individual doing business as Texas (hereinafter called "Owner"). Ladies and Gentlemen: ------------------- to the City of La Porte, The Bidder, in compliance with your invitation for bids for the construction of Main Street Sidewalk and Curb Replacement and Corner Wheelchair Access Ramps #pr the City of La Porte having examined the plans and specifications with related docume5~ts and the site of the proposed work, and being familiar with all of the conditions surrounding the construction of the proposed project including the availability of materials and labor, hereby proposes to furnish all labor, materials and supplies and to construct the project in accordance with the contract documents, within the time set forth therein, and at the prices stated in the attached Bid Schedule. These prices are to cover all expenses incurred in performing the work required under the contract documents, of which this proposal is a part. Bidder hereby agrees to commence work under this contract on a date to be specified in written "Notice to Proceed" of the Owner and to fully complete the project within 45 consecutive calendar days thereafter as stipulated in the specifications. Bidder further agrees to pay as liquidated damages, the sum of X50.00 for each consecutive calendar day thereinafter as hereinafter provided in Paragraph SC-6 of the Special Conditions of the Agreement. Bidder acknowledges receipt of the following addendum: NONE BP-1 ;, , • • PROPOSAL ITEM DESCRIPTION UNIT QUANTITY UNIT COST 'Ir7I'AL 1) 6" Concrete Curb LF 372.5 6.0 0 2 , 2 3 5 . Compfete in place $ Two thousand two hundred thirty five & no/100 2) 8" Concrete Curb LF 315 ~ _ n n 1 .8 9 0 . Complete in place $ One thousand ei tht h undred ninety & no/1 n0 3) Removal of Existing LF 687.5 2.00 1.3, 3 7 55 Curb " $ One thousand th rPP h undrac3 eP~~ant~ five ~ nA/ 10(L_ 4) Removal of Existing SF 4228 2.5 0 l 0.• 5 7 0 . Sidewalk $ Ten thousand five hundred seventy and no/100 I 5) Replacement of SF 4103 8.00 12, 309 Concrete sidewalk Complete in place ~ _ $ Twelve thousand three hundred nine and no/100 6) Wheelchair ramp @ EA 1 800. N,W Corner 2nd and Main $ Eight hundred and no/100 7) Wheelchair ramp @ EA 1 800. N,E Corner 2nd and - Main $ Eight hundred and no/100 8) Wheelchair ramp @ EA 1 800. S,W Corner 2nd and Main $ F.igYtt hundred and no/100 9) Wheelchair ramp @ EA 1 800. S,E Corner 2nd and Main $ Eight hundred and no/100 BP-2 • • 10) Wheelchair ramp @ EA 1 goo N,W Corner 1st and Main $ Eight hundred and no/100 I1) Wheelchair ramp @ EA 1 800. N,E Corner 1st and Main $ Eight hundred and no/100 12) Wheelchair ramp @ EA 1 800. S,W Corner 1st and Main $ Eight hundred and no/100 ~' 13) Wheelchair ramp @ EA 1 800. S,E Corner 1st and _ ~ - Main $ Eight hundred and no/100 14) Wheelchair ramp @ EA 1 800 N,W Corner Broadway and Main $ Eight hundred and no/100 15) Wheelchair ramp @ EA 1 800 S,W Corner Broadway and Main $ Eight hundred and no/100 36,379. TOTAL: $_Thirty six thousand three hundred seventy nine & no/100 BP-3 ~, • • ALTERNATEI BASE PROPOSAL: Bidder agrees to perform all of the work shown on the plans and further described in the specifications for the sum of Two t h o» G a n ~ a n ~ no/100 dollars ($ 2 , 000.00 1 (Amount shall be shown in both words and figures. In case of discrepancy, the amount shown in words will govern.) Patterned concrete with color for bid items 6-15 (wheelchair ramps). Lump sum price for each = $Two hundred & no/100 $Two hundred & no/100 $Two hundred & no/100 $Two hundr~c~ £~ nn ~100 $.Two hundred & , no/100 $Two hundred & nn/100 $Two hundred & no/100 $Two hundred & no/100 ~~ $Two hundred & no/100 $Two hundred & no/100• TOTAL ALTERNATE: $~'wo thousand ~. no/100 '° Bidder understands that the Owner reserves the right to reject any or all bids and to waive any informalities in the bidding. The bidder agrees that this bid shall be good and may not be withdrawn for a period of thirty (30) calendar days after the scheduled closing time for receiving bids. Upon receipt of written notice of the acceptance of this bid, bidders will execute the formal contract attached within ten (10) days and deliver a Surety Bond or Bonds as required by the General Conditions. The bid security attached in the sum of ($ ) is to beco the property of the Owner in the event the contract and bond are not executed within a time above set forth, as liquidated damages for the delay and additional expense tot Owner caused thereby. Respectfully s 'tted BY: ~ / (Signature of uthorized Person) (SEAj,) VICE-PRESIDENT (Title) -~,,. ~ 1 ~; i' / ,~ ,~ .. 11 1 N . BROADWAY (Business Address) ~~ T.a Porte, TPxa~ 77571 ,~ , , ~ ~ (City) (State) (Zip Code) ` , ' BP-4 '~ • ,; ,,~, ;~. • • CONTRACT THIS AGREEMENT, made this 14TH day of JANUARY ,1992, by and between the CITY OF LA PORTE, hereinafter called "Owner", acting herein through its City Manager .and (Title of Authorized Official) and FOLLIS CONSTRUCTION INC. (Name of Contracting Firm) Strike out inapplicable terms: (a corporation)~~1€1~ or (~dlx~dt~ doing business aS): FOLLIS CONSTRUCTION INC. of LAPORTE ~• County of HARRIS ,and State of Texas, hereinafter called "Contractor". `'~ITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the OWNER, the CONTRACTOR hereby agrees with the OWNER to commence and complete the construction described as follows: Main Street sidewalks & curb replacement and wheelchair ramps hereinafter called the project, for the Unit Price of THIRTY EIGHT THOUSAND, Dollars ($ 3 8 , 3 7 9.00 )and all extra work in connection therewith, under the terms as stated in the General and Special Conditions of the contract; and Further, that the CONTRACTOR agrees, at his (its or their) own proper .cost and expense, to furnish all the materials, supplies, machinery, equipment, tools, superintendence, labor, insurance, and other accessories and services necessary to complete the said project in accordance with: A. The terms and conditions stated in the Proposal and in the General Conditions, and Special Conditions of this Contract; Scope of Work B. The plans, which include all maps, plats, blue prints, and other drawings and printed or written explanatory matter thereof; and CON • C. The Specifications and other contract documents therefore, as prepared by the City of La Porte, all of which are made a part hereof and collectively evidence and constitute the contract. The CONTRACTOR hereby agrees to commence work under this contract on or before a date to be specified in a written "Notice to Proceed" of the Owner and to fully complete the project within 6o calendar days thereafter. The CONTRACTOR further agrees to pay, as liquidated damages, ~ the sum of $50.00 for each consecutive calendar day thereafter as hereinafter provided in Paragraph SC-6 of the Special Conditions. IN WITNESS WHEREOF, the parties to these present have executed this contract, each of which shall be deemed an original, in the year and day fixst above mentioned. SEAL Attest: Title Citv of La Porte Name of Owner Bv: Robert T. Herrera City Manager Title SEAL ,l '~ ,> `~ ~ ~ 1+4 ,- ~ ~` ~ ~ , , c G~t~ { ~'Witness~'' ~~ FOLLIS CONSTRUCTION INC Name of Contracting Signature of Authorized Person yT~`F_1'RESTDENT Title of Authorized Person ~~` 111 N. BROADWAY LAPORTE 77571 :_*_::::::::::::*~:::::::::~:::~::~::*::::::*Addre~s and Z*p Code:~***::*~**:: Approved as to Form: City Attorney • • REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 1-13-92 Requested By: Stan Sherwood Department: Parks & Rec. X Report Resolution Ordinance Exhibits: Memorandum from Stan Sherwood to Robert T. Herrera SUNIlKARY & RECOMMENDATION In late November, the Council Members were individually visited by the Parks and Recreation Staff regarding the purchase of some used exercise equipment which would be utilized in the new Recreation Center. At that time all members of the Council approved the City Manager to purchase of the exercise equipment. Action Required by Council: Ratify the purchase of exercise equipment for the new Recreation/Fitness Center. Availability of Funds: General Fund Water/Wastewater Capital Improvement General Revenue Sharing X Other Account Number:034-800-520-780 Funds Available: ~ YES NO Approved for City Council Agenda Robert T. Herrera Date City Manager REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 1-13-92 Requested By: Stan Sherwood Department: Parks & Rec. X Report Resolution Exhibits: Memorandum from the buyer Ordinance SUNIIKARY & RECOMMENDATION Sealed bids #0467 for replacement of the Edith Wilson Library roof were opened and read on December 30, 1991. Invitations for bidding the roof replacement were mailed to six (6) vendors, one of the vendors responded with a bid. Continental Contractors submitted a bid in the amount of $6,360.00 and staff recommends approval of this bid. Action Required by Council: Accept Continental Contractors bid in the amount of $6,360.00. Availability of Funds: General Fund Water/Wastewater X Capital Improvement General Revenue Sharing Other Account Number:001-800-800-802 Funds Available: X YES NO Approved for City Council Agenda Robert T. Herrera Date City Manager • CITY OF LA PORTE INTER-OFFICE MEMORANDUM JANUARY 3, 1992 T0: STAN SHERWOOD, DIRECTOR OF PARKS & RECREATION FROM: SUSAN KELLEY, BUYER~~ SUBJECT: LIBRARY ROOF Advertised, sealed bids #0467 for Library Roof were opened and read on December 30, 1991. Bid requests were mailed to the following vendors: Brinkmann Roofing Continental Contractors Gage Roofing & Constructors Aames Roofing Action Roofing Mike's Roofing Exclusive bid was submitted by Continental Contractors, for $6,360.00 with a seven day completion time. Upon receiving only one bid, I contacted the other vendors with the following responses: Not certified for that type of roof Too much competition Delayed because of rain and holidays Mould not provide warranty on roof specified 1 vendor did not return calls Please submit your recommendation with an agenda request form by the prescribed time before the next regular council meeting. If there is a need to delay bringing this bid before council, please notify me. SK/gym xc: Bert Clark REQUE~ FOR CITY COUNCIL AGENDA ~M r Agenda Date Requested: 1/13/9,/2/ Requested By; J.L. SEASE '!!~ Department: X Report Exhibits: Resolution MEMO FROM SUSAN KELLY, BUYER Ordinance BID TABULATION SHEET SUMMARY & RECOMMENDATION FUNDS ARE ALLOCATED THROUGH THE CURRENT BUDGET IN THE VEHICLE REPLACEMENT DIVISION TO REPLACE A 1988 AMBULANCE (UNIT #382), SEALED BIDS #0463 WERE OPENED ON DECEMBER 2, 1991. LOW BID WAS SUBMITTED BY COLLINS AMBULANCE SALES & SERVICES FOR $56,975.00, INCLUDING TRADE-IN. HGAC'S PRICE FOR THE AMBULANCE INCLUDING TRADE-IN & 3% ADMINISTRATION FEE IS $59,694.00. I RECOMMEND THAT THE CITY AWARD THE BID TO COLLINS AMBULANCE SALES & SERVICE FOR THE AMOUNT OF $56,975.00. Action Required by Council: ACCEPT OR REJECT BID Availability of Funds: ~_ General Fund Water/Wastewater Capital Improvement General Revenue Sharing Other Account Number: 009-500-517-850 Funds Available: X YES _ NO Annroved for City Council Agenda Robert T. Herrera DATE City Manager FIRE • • rTTV Q1; L:D P(1RTF TNTFR-Q&'F+'1(".F MF'MQF?AT~TrI[]M llT:('FMRFR '~(1, 1g91 TQ; T(lF SEA~F, F'TRF rHT_EF FROM : SUSAN xFr.r,Fy , RTTyRR i~ Sttg.TFCT : AMBULANCE Advertised sealed bids #Oa63 fpr ?S,l?2hiilanCe [~lere opened and read on December 2, 1991. Bid requests [Jere mailed to threw suppl i arcs [~Ji tll pr~a ~ 1 ~ rat~rrii ng bi rl , Lp[^1 kiirl [Nac g~bmittarT hjr Gpl l inS AmbLilar~Ca Sales Iv, ~ar~~ripa fpr C~F_,,Q7j.(1Q, irirliiGling tra~„Gie-iri. Nf;Ar~g prim fnr tha Atr1T,~~larire, inrliiGlirig $% administration feP aril trade-;ri, ;s $~g,Fga,?.~, Plaaca submit jrp~,r rar-pmmendatlon [~Jit7'? an agenda rgq~ect form h1r the pracrri}JeGi tame ipefnra the neat regular co~ancil meeting. T f them i s a naafi to de l a,~ l~r i nging this h i rl befpro rp~riC i l, please nptiflr ma, SK_! j m ur ; (`hr i S Osteri, FMC ('.h i of • AMBULANCE C7 SEALED BID 40463 COLLINS HGAC's AMBULANCE SALES & PRICE FOR AMBULANCE $56,975.00 $59,694.25 • • ~ZEOUE~'~_~'~.~.TY_.~~I~' ~.I,~_8~L1~A~.~~1 ----------------------------------------------------------------- ---------------------------------11-------------------------------- Agenda Date Requested: _ JAd ~~~~~ 2 .~ __„~ Requested By: _I,,Q.~ais Rib partment: _~urch~sing ____ Report. !. _R solution _.._Qrdi.nance Exhibits: ----------------------------------------------------------------- ----------------------------------------------------------------- ~~~RY & RECOMM~DAT I ON Various departments have budgeted for radios this fiscal. year. Ordering from the Houston-Galveston Area Council would preclude the need for a sealed bid. Total cost would be $30,134.71. Inspections $ 718.00 EMS 1,790.00 Police 23,425.00 Fire 3,324.00 Administrative Fee 877.71 ~'1 R Ac~~ i o 5 Action Required by Council: Approve radio purchase from H.G.A.C. ---------------------- ---------------------- Availability of Funds: General Fund Water/Wastewater• Capital Improvement ^Gener•al Revenue Sharing _. Other Account Number: _`_ ___~_.~ Funds Available: +_ _YES No -------------------- At~proved for City Council A~en~ Robert T. Herrera Date City Manager FY 91-92 RADIOS Insp. (1) Mobile radio - Maxtrac 300 718.00 3% Administration fee 21.54 739.54 EMS. (2) Hand held portable radio - MT1000 @ 740.00 1480.00 (2) Rapid Rate Desk Charger @ 91.00 182.00 (2) Speaker Mike @ 64.00 128.00 1790.00 3% Administration fee 53.70 1843.70 Fire (4) Hand held portable radio - MT1000 @ 740.00 2960.00 (4) Rapid Desk Charger @ 91.00 364.00 3324.00 3% Administration fee 99,72 3423.72 Police (10) Hand held portable - HT600 @ 740.00 7400.00 (10) Rapid Charger @ 91.00 910.00 (5) Spectra mobile radio - 50 watts @ 1818.00 9090.00 (5) Upgrade to 100 watts - Model A9 @ 462.00 2310.00 (5) Siren / PA @ 510.00 2550.00 (5) Underhood Speaker @ 180.00 900.00 (5) Gain Antenna 3.0 @ 53.00 265.00 23425.00 3% Administration fee 702.75 24127.75 • • REQUEST FOR CITY COUNCIL AGENDA ITEM AGENDA DATE REQUESTED January 13, 1992 REQUES D B ff Litchfield DEPARTMENT Director of Finance REPORT RESOLUTION ORDINANCE EXHIBITS: Bid Tabulation SUMMARY AND RECOMMENDATION Advertised, sealed bid # 0466 for the purchase of modular office furniture for the finance and customer service divisions were opened and read on December 23, 1991. Bid requests were mailed to five (5) vendors with two (2) returning bids. The overall most responsive bid meeting specifications was submitted by Office Pavilion for $13,663.60. The other bid was from B & B Office Supply and totaled $26,666.00. The items to be purchased include two complete work stations to be placed in the customer service area. One of which will accommodate an employee that is currently sharing a work area with another employee and the other will be placed where the two microcomputers are located and will also provide a secondary work space to be used as needed. Other items to be procured include additional file space to store the ever increasing mass of information we need to keep in the office. In transferring our requirements to the bid document, there were six panels that were missed and were not included in the bid. These panels are required to construct the work stations in the design that we desire. Louis Rigby, Purchasing Manager, instructed us to add the cost of the panels to each bid, bringing the revised total to $14,548.96 for Office Pavilion and $28,443.50 for B & B Office Supply. A total of $16,350 was budgeted for these items. ACTION REQUIRED BY COUNCIL: Award bid for the purchase of modular office furniture for the finance and customer service divisions to Office Pavilion, overall low bidder meeting specification, in the amount of $14,548.96, which includes the base bid of $13,663.60 and $885.36 for the six panels that were inadvertently omitted. AVAILABILITY OF FUNDS: XX GENERAL FUND XX UTILITY FUND OTHER ACCOUNT NUMBER: Various FUNDS AVAILABLE: XX YES NO APPROVED FOR CITY COUNCIL AGENDA ROBERT T HERRERA DATE CITY MANAGER CITY OF L•A PORTE Tt~TTgR-QF'FICF MEMORANDUM JANUARY 3, 1991 T0: JEFF LITCHFIEL•D, DT_F.ECTOR OF FINANCE FRAM ; SUSAN KET,T.F'Y , $TJVFR SUBJECT: MODULAR FURNITURE Advertised, sealed bids #Oa66 for Modular Furr_iture were opened and read on December 23, 1991 . Bid requests T~~ere mailed to f ive ( 5 ) vendors Trri th two ( 2 ) returr_ i r_g b ids . L•QLN bid meeting spec i f i cat i or_s ~~3a8 submitted by Qf f i re pavilion for $13,663.60. Please submit your reco?nmendat i or_ with an agenda request form by the prescribed time before the r_ext regular council meeting. T_f there is a need to delay bringing this bid before council, please notify me . P_ttachmer_t: Bid Tabulation xc: Lir_da Stubbs, Finance Officer MODULAR OFFICE FURNITURE SEALED BID ~~0466 OFFICE B & B PAVILION OFFICE SUPPLY TATIT iLT V TOTAL OF ALL MODULAR FURNITURE $13,663.60 $26,666.00 -- (~U`lJ\~\ON ~~ C~ ~t0.t~eJ~S dss ?`O ~ ~7~.5~ - ly S~{g 9~ a8 y`13,So ~ • ADMINISTRATIVE REPORT TO CITY COUNCIL January 8, 1992 RE: Applications for carport permits December 26, 1991 through January 8, 1992 Under the terms of Zoning Ordinance 1501-N, December 26, 1991 was the first date on which permit applications for front yard carports, could be considered for approval. To date, two applications have been received. Neither application was approved because they did not comply with Zoning Ordinance regulations. Both have been refused for failure to comply with zoning regulations. The applications were as follows: I. 17731 Alamo Drive (Joseph Burkhart, owner) Permit was denied based on provisions of Zoning Ordinance Section 1-400. This section states that when ordinance requirements conflict with "private restrictions," the more restrictive applies. Monument Estates' platted setback lines are more restrictive and therefore supersede ordinance requirements. II. 701 South Kansas (Billy Lamar, Owner) Permit was denied based on the definition of a carport (Section 13-1001) and the provisions of Section 10- 401.4. A carport is defined as a structure located "directly over a driveway." The proposed structure was to be extended away from the driveway to cover the sidewalk and front door. Section 10-401.4 limits a carport to a maximum width of 25 ft. The proposed structure was to be 28 ft. wide. The applicant for this permit has turned in an amended request which reduces the overall width of the proposed structure to 25 ft. in order to comply with zoning requirements. With this change and all other permitting matters completed we anticipate this permit being issued. • .,,,,,, KNOX W. ASKINS JOHN D. ARMSTRONG January 10, 1992 ASKINS S. ARMSTRONG, P. C ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P. O. BOX 1218 LA PORTE, TEXAS 77572-1218 Hon. Mayor & City Council City of La Porte City Hall La Porte, Texas Re: City Attorney Evaluation Dear Mayor & Council: • ~ -~~.__ ~~ TELEPHONE 713 471-1886 TELECOPIER 713 471-2047 This letter is to provide information for your use in your evaluation of the City Attorney's office. The position of City Attorney is set forth in Section 3.05 of the Home Rule Charter of the City of La Porte, which reads as follows: "City council shall appoint a competent attorney, duly licensed by the State of Texas, to be city attorney and head of the department of law. He shall be appointed and removed at the will and pleasure of council by a majority vote of the entire council, and shall receive compensation as may be fixed by council. The city attorney, or other attorneys selected by him with the approval of Council, shall represent the city in all litigation. He shall be the legal advisor of, and attorney and counsel for, the city and all offices and departments thereof." Background Rnox W. Askins was appointed City Attorney of the City of La Porte in March, 1965. John D. Armstrong was appointed Assistant City Attorney in May, 1982, by City Council, and has worked on Planning & Zoning, Community Development, Building Code, La Porte Area Water Authority, Emergency Medical Services, and serves as Municipal Court Prosecutor. The City of La Porte was the first city in the State of Texas to have Industrial District Agreements. Because of his early experience in this area, Mr. Askins has served as special legal counsel to the cities of Lake Jackson, Clute, and Alvin, in formulating their Industrial District Agreements. Duties of City Attorney. As provided in the Home Rule Charter, the role of the City Attorney can be divided into two functions. First, the City Attorney is the attorney and legal advisor and counsel to the City and all its Hon. Mayor & City Council City of La Porte January 10, 1992 Page 2 offices and departments. Secondly, either the City Attorney, or other attorneys selected by him with the approval of Council, shall represent the City in all litigation. The legal advice and counsel aspects of the City Attorney's office, include such matters as: Routine day-to-day legal advice and counsel to City staff, both in person and by telephone. Examination of contracts, legal documents, correspondence, and legal advice on the contents thereof. Attend City Council, and City Board and Commission meetings. Preparation of ordinances, resolutions, contracts, leases, and other agreements. Work with the City staff and outside architects and engineers, on bid documents and contract documents for City construction. Legal oversite of elections, and necessary submissions under the Federal Voting Rights Act. Negotiation and preparation of Industrial District Agreements. Acquisition of real property interests, including fee simple titles, easements, and other property needed for City purposes. Coordination with TML attorneys and other outside attorneys on claims and litigation against City. Coordination with Risk Manager on risk management activities. Review subpoenas and Open Records Act requests. John D. Armstrong, Assistant City Attorney, acts as prosecutor in the Municipal Court, and, under the supervision of the City Attorney, handles legal matters relating to Planning & Zoning, Board of Adjustment, Community Development, Building Permits, Emergency Medical Services, and La Porte Area Water Authority. Litigation Attorneys At present, the only litigated matters handled in the City Attorney's office include prosecution duties in the Municipal Court, and Board of Adjustment and Zoning litigation, handled by Mr. Armstrong. Other litigated and highly specialized matters are handled from time to time for the City of La Porte by outside attorneys recommended by the City Attorney, and approved by City Council. At present, the following outside attorneys are handling matters for the City of La Porte: Bond Attorney - All matters relating to the issuance of bonds by the City of La Porte are handled by bond attorney Paul Martin, of San Antonio, Texas. Mr. Martin was chosen from several bond attorneys recommended by the City's fiscal advisor, Maroney, Beissner & Company, of Houston. ~ ~ Hon. Mayor & City Council City of La Porte January 10, 1992 Page 3 Delinquent Tax Attorney - Dexter Joyner, an attorney in Pasadena, Texas, who specializes in the collection of delinquent taxes, has been under contract to the City of La Porte for a number of years, to collect its delinquent taxes. In this connection, Mr. Joyner provides certain computer services to the City of La Porte. His compensation is based on a percentage of his collections, as allowed by State law. Bankruptcy Attorney - The City has recently had occasion to require the services of a bankruptcy attorney, to represent the City in a Chapter 11 bankruptcy proceeding filed by Bayport Aviation, Inc., one of the lessees at the municipal airport. On the recommendation of the City Attorney, Mr. Firmin Hickey, of Houston, a bankruptcy specialist, was retained to represent the City's interest in this matter. Mr. Hickey was successful in obtaining a full recovery for the City, and has filed an application for full reimbursement to the City of attorneys fees paid to him by the City. Environmental Attorney - Robin Loyd, of Austin, an attorney with experience and former employment with the Texas Health Department, was employed by the City to represent it in the application process and hearings for the sanitary landfill permit on an approximately 80 acre tract on Bay Area Boulevard in the Bayport Industrial District. Environmental Attorney - Brent Ryan, of Austin, formerly with Robin Loyd's law firm, was retained by the City to represent it in the HCS permitting procedure. The City Attorney compiled a list of five qualified environmental attorneys with experience in handling contested hazardous waste incinerator permits before the Texas 'v7ater Commission. The City Council interviewed the five attorneys, and selected Mr. Brent Ryan. General Litigation Attorneys - During his tenure as Mayor, E.A. "Buck" Thomas retained the late Will Sears, of the now dissolved Sears & Burns law firm in Houston, to represent the City of La Porte in litigation with Southern Pacific Railroad Company, on the S.P. rail yard in the north portion of La Porte. This litigation was successful from the City's standpoint, and resulted in S.P. constructing, at its expense, the overpass on Spencer Highway over its railroad tracks, and other concessions to the City. Based on this relationship, the City Council in future years approved the employment of the Sears & Burns law firm, to represent it in several litigated matters. These matters were handled by Mr. Sears, and firm partners, Charles Dippel and Charles Huber. Upon the Hon. Mayor & City Council City of La Porte January 10, 1992 Page 4 dissolution of the Sears & Burns law firm, City Council approved the continued employment of Mr. Dippel on the cases which were being handled by his former law firm. Currently, Mr. Dippel is representing the City on the Southern Ionics suit in Federal District Court; the appeal of the Prince suit; and the Barfield suit. Mr. Huber is currently representing the City on the Janet Stevenson zoning lawsuit litigation, the appeal of the contractor litigation on the wave pool, and the matters relating to the Angel Brothers East "E" Street construction contract. TML Liability Insurance Attorneys - The City of La Porte has been insured for many years with the TML insurance fund, for many of its liability claims. When a claim against the City arises which is within the coverage of the TML insurance policy, it is assigned to one of several approved TML attorneys. The Houston law firm of Sewell & Riggs is the principal law firm in Houston providing defense. As with any liability insurance policy, the insurance company directs the defense, employs the attorney, and pays the attorney's fees for the defense of the City, and, within the policy limits, any resulting judgments. At any given time, there are a number of cases, mainly automobile accident cases, being defended for the City by TML selected attorneys. This letter will furnish City Council with an overview of the services provided by the City Attorney's office, and by outside legal counsel. If you have any further questions, please ad ise. Yo very ruly, Knox W. Askins City Attorney City of La Porte KWA:sw