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Home My WebLink About1998-06-22 Regular Meeting of City Council e - - e MINUTES OF THE REGULAR MEETING OF LA PORTE CITY COUNCIL JUNE 22,1998 1. CALL TO ORDER The meeting was called to order by Mayor Pro Tern Alton E. Porter at 6:05 p.m. Members of City Council Present: Mayor Pro Tern Alton E. Porter, Council persons Guy Sutherland, Chuck Engelken, Howard Ebow, Peter Griffiths, Deotis Gay, Charlie Young and Jerry Clarke. Members of Council Absent: Mayor Norman L. Malone. Members of City Executive Staff and City Employees Present: City Manager Robert T. Herrera, Assistant City Manager John Joerns, City Manager's Secretary Carol Buttler, Director of Public Works Steve Gillett, Planning Director Doug Kneupper, Chief of Police Bobby Powell, Director of Administrative Services Louis Rigby, City Attorney, Knox Askins, Assistant Finance Director Cynthia Alexander, Golf Course Superintendent Dennis Hlavaty, Water Superintendent Curtis Herrod, City Secretary Martha Gillett, Purchasing Agent Susan Kelley, Wastewater Superintendent Walter Barnes, Assistant Public Works Director Buddy Jacobs and Employee of the Quarter Phil Wade. Others Present: Spero Pomonis, Reverend Alan Neel, Ed Cooke, Debbie Cooke, Fred Westergren, Bob McLaughlin and a number of La Porte Citizens. 2. INVOCATION - REVEREND ALAN NEEL - LIFE COMMUNITY CHURCH Reverend Alan Neel delivered the invocation. 3. CONSIDER APPROVING MINUTES OF SPECIAL CALLED REGULAR MEETING ON JUNE 2, 1998. Motion was made by Councilperson Sutherland to approve the minutes of June 2. 1998 meeting as presented. Second by Councilperson Engelken. The motion carried, 7 ayes, 0 nays and I abstain. Ayes: Sutherland, Engelken, Griffiths, Gay, Young, Clarke and Mayor Pro Tem Porter. Nays: None Abstain: Councilperson Ebow. 4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL Mr. J.L. Howell, 555 San Felipe, Suite 2200, Houston, Texas 77056 addressed the Council regarding Bay Forest Residential Development. - e June 22, 1998 Minutes - Page 2 Mrs. Brenda McPearson, 8402 Bandridge, La Porte Texas, 77571 addressed the Council about the need fot speed humps in the Brookglen Subdivision. 5. PROCLAMATIONIPRESENT A TION Mayor Pro Tern Alton Porter presented Bob McLaughlin with a plaque and proclamation recognizing his nine years of service on the City Council. Mayor Pro Tem Alton Porter and Public Works Director Steve Gillett recognized Phil Wade as the Employee of the Quarter for January, February and March 1998. 6. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE TO CLOSE, V ACA TE AND ABANDON THE ALLEY IN BLOCK 87, TOWN OF LA PORTE (Ord. 98-2252) D. Kneupper Planning Director Doug Kneupper presented summary and recommendation to City Council and addressed questions. City Attorney read: ORDINANCE 98-2252 - AN ORDINANCE VACATING, ABANDONING AND CLOSING A PORTION OF THE ALLEY IN BLOCK 87, TOWN OF LA PORTE, HARRIS COUNTY, TEXAS; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Gay to aporove the Ordinance as read by the City Attorney. Second by Councilperson Clarke. The motion carried 8 ayes and 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke and Mayor Pro Tern Porter. Nays: None 7. CONSIDER APPROVAL OR OTHER ACTION AUTHORIZING THE ISSUANCE OF $1,250,000 CITY OF LA PORTE, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1998, AND ALL OTHER MATTERS RELATED THERETO (Ord. 98- 2253) R.T. Herrera City Manager Robert T. Herrera presented summary and recommendation to City Council. Mr. Herrera noted this item is found under Tab 8 in the Council Agenda notebooks. Dave and Moss Fetzer presented Council with bid results. City Attorney read: ORDINANCE 98-2253 - AN ORDINANCE AUTHORIZING THE ISSUANCE OF $2,500,000 CITY OF LA PORTE, TEXAS, WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1998, AND ALL OrnER MATIERS RELATED THERETO. e e June 22, 1998 Minutes-Page 3 Motion was made by Council person Engelken to approve the Ordinance as read by the City Attorney. Second by Council person Young. The motion carried 8 ayes and 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke and Mayor Pro Tem Porter. Nays: None 8. CONSIDER APPROVAL OR OTHER ACTION AUTHORIZING THE ISSUANCE OF 52,500,000 CITY OF LA PORTE, TEXAS GENERAL OBLIGA TION BONDS, SERIES 1998, AND ALL OTHER MATTERS RELATED THERETO (Ord. 98-2254) - R. T. Herrera City Manager Robert T. Herrera presented summary and recommendation to City Council. In,addition, Mr. Herrera answered Council questions. City Attorney read: ORDINANCE 98-2254 - AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF $2,500,000 LA PORTE, TEXAS, GENERAL OBLIGATION BONDS, SERIES, 1998, AND ALL OTHER MATIERS RELATED THERETO. Motion was made by Councilperson Young to approve the Ordinance as read by the City Attorney. Second by Councilperson Griffiths. The motion carried 8 ayes and 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke and Mayor Pro Tem Porter. Nays: None 9. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND HORSESHOE CONSTRUCTION, INC. TO PROVIDE TRENCHLESS SEWER REHABILITATION; APPROPRIATING $119,812.00, TO FUND SAID CONTRACT, PLUS AN ADDITIONAL ONE YEAR CONTRACT WITH UNITY PRICES TO BE AUTHORIZED AS NEEDED (Ord. 98-2255) S. Gillett Publi.c Works Director Steve Gillett presented summary and recommendation and addressed Council questions. City Attorney read: ORDINANCE 98-2255 - AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND HORSESHOE CONSTRUCTION, INC., TO PROVIDE TRENCH LESS SEWER REHABILITATION; APPROPRIATING $119,812.00, TO FUND SAID CONTRACT, PLUS AN ADDITIONAL ONE YEAR CONTRACT WITH UNIT e e June 22, 1998 Minutes - Page 4 PRICES TO BE AUTHORIZED AS NEEDED; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made, by Council person Clarke to approve the Ordinance as presented by City Attorney. Second by Councilperson Ebow. The motion carried 8 ayes and 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clark and Mayor Pro Tern Porter. Nays: None 10. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE RATIFYING CONFIRMING AND APPROVING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND SUNBELT POOL SUPPLY, DATE JUNE 9, 1998, FOR REPAIRS TO THE WAVE POOL; APPROPRIATING $52,502.24, TO FUND SAID CONTRACT, PLUS $1,200.00 PER DAY FOR EARLY COMPLETION (Ord. 98-2256) - D. Kneupper Planning Director presented summary and recommendation. In addition, Mr. Kneupper answered Council questions. City Attorney read: ORDINANCE 98-2256 - AN ORDINANCE RATIFYING, CONFIRMING AND APPROVING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND SUNBELT POOL SUPPLY, DATED JUNE 9, 1998, FOR REPAIRS TO THE WAVE POOL; APPROPRIATING $52,502.24, TO FUND SAID CONTRACT, PLUS $1,200.00 PER DAY FOR EARLY COMPLETION; 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 EDlzelken to apDrove the Ordinance as presented by the City Attorney. Second by Council person Ebow. The motion carried, 8 ayes, 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke and Mayor Pro TemPorter. Nays: None 11. CONSENT AGENDA - ANY ITEM MAYBE REMOVED BY A COUNCILPERSON FOR DISCUSSION Mr. Griffiths noted he had questions on items A and C. Mayor Pro Tern stated item would be voted on separately. e e June 22, 1998 Minutes - Page 5 A. CONSIDER AWARDING ANNUAL CONTRACT TO BWI, TURF INDUSTRIES AND GOLD KIST FOR CHEMICAL AND FERTILIZERS IN THE AMOUNT OF $47,191.62 - A. Osmond Dennis Hlavaty addressed Council questions. Motion was made by Council person Ene-elken to approve the bid as recommended by staff. Second by Council person Gay. The motion carried 8 ayes and 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke and Mayor Pro Tem Porter. Nays: None B. CONSIDER AWARDING CITY HALL CARPET BID OF $32,782.47 TO CARPET PLUS - C. Buttler Carol Buttler addressed Council questions. Motion was made by Council person En2elken to approve the bid as presented by staff. Second by Council person Griffiths. The motion carried 8 ayes and 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke and Mayor Pro Tern Porter. Nays: None C. CONSIDER AWARDING BID FOR TWO PATROL CARS TO pmLPOTT FORD IN THE AMOUNT OF $21,595.00 EACH - B. Powell Police Chief Bobby Powell answered Council questions. Motions was made by Councilperson Ebow to approve bid as recommended by staff. Second by COlincilperson Engelken. Motion carried 8 ayes and 0 nays. Ayes: Sutherland, Engelken, Ebow, Griffiths, Gay, Young, Clarke and Mayor Pro Tern Porter. Nays: None 12. ADMINISTRATIVE REPORTS City Manager Robert T. Herrera reminded Council of the Council Retreat at Del Lago on July 10-12, 1998. e e June 22, 1998 Minutes - Page 6 Mr. Herrera reminded Council of the AMCC Conference in Bryan/College Station on July 16-19, 1998. Mr. Herrera advised Council of the results of the Joint City Auction for the City of La Porte and the City of Deer Park. Lastly, Mr. Herrera reminded Council of the Police Banquet to be held on June 26, 1998 at the RecreationlFitness Center at 7:00 P.M. 13. COUNCIL ACTION CounciJpersons Sutherland, Engelken, Ebow, Griffiths, Gay, Young, and Mayor Pro Tern Porter brought items to Council's attention. 14. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, AND 551.084, TEXAS GOVERNMENT CODE, - (CONSULTATION WITH A ITORNEY, DELIBERA nON REGARDING REAL PROPERTY, DELmERATION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, CONFERENCE WITH EMPWYEES DEL1BERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION) A. SECTION 551.071 - (LEGAL MATIER) MEET WITH CITY ATTORNEY TO DISCUSS PENDING LITIGATION Council retired into executive session at 7:51 p.m. under Section 551.071 (LEGAL MATIER) Meet with City Attorney to discuss pending litigation. Council returned to the table at 9:22 p.m., with no action taken. 15. CONSIDERATION AND POSSIBLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION There was no action taken on Executive Session item. 16. ADJOURNMENT There being no further business to come before Council, the Regular Meeting was duly adjourned at 9:23 p.m. e e June 22, 1998 Minutes - Page 7 Respectfully submitted, ~f1:'!!'t:u3' JI.dMA- City Secretary Passed and approved on this 13th day of July, 1998. Jt~~ . . - , .e _ ... '''''f1''''' I ..;, "QUEST FOR CITY COUNCIL AGENIITEM Agenda Date Requested: 6/22/98 Requested By: Doua Kneupper ~ Department: Plannina Report Resolution X Ordinance Exhibits: 1. 2. 3. Ordinance Exhibit "A" Exhibit liB" - Letter from L.P.I.S.D. SUMMARY & RECOMMENDATION The City of La Porte has been petitioned by La Porte Independent School District to close, vacate, and abandon a portion of the alley in Block 87, Town of La Porte (see Exhibit "A"). The purpose of this request is to facilitate the District's current plans for construction of a new alternative school in Block 87, Town of La Porte. The Planning and Public Works Departments have reviewed this request and have determined the need to relocate an existing 8" sanitary sewer line located within the aforementioned alley. District representatives have subsequently received approval of plans for the relocation of the existing sanitary sewer line for which construction is currently underway. Additionally, District representatives have coordinated with each of the City's franchised utility companies to arrange for abandonment and/or relocation of existing franchised utilities. In accordance with Article II, Section 62-35 of the Code of Ordinances, the District is exempted from the payment of fair market value fees for the closing, vacating, and abandoning of the alley. Recommendation Staff recommends closing, vacating, and abandoning a portion of the alley in Block 87, Town of La Porte as shown on Exhibit "A" attached hereto. Action Required by Council: Consider approval of an ordinance to close, vacate, and abandon the alley in Block 87, Town of La Porte. Availability of Funds: NIA G~neral Fund Capital Improvement Other WaterlWastewater General Revenue Sharing Account Number: - ..~- Funds Available: YES NO ADDroved for City Council Aaenda Gi~ T. ~ Robert T. Herrera City Manager DATE e e , ORDINANCE NO. 98- 2252 copy AN ORDINANCE VACATING, ABANDONING AND CLOSING A PORTION OF THE ALLEY IN BLOCK 87, TOWN OF LA PORTE, HARRIS COUNTY, TEXAS; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City Council of the City of La Porte has been requested by the record owner of all of the property abutting the hereinafter described alley in Block 87, Town of La Porte, Harris County, Texas; to vacate, abandon, and permanently close that portion of the alley in Block 87, Town of La Porte, Harris County, Texas; and WHEREAS, the City Council of the City of La Porte has determined and does hereby find, determine, and declare that the hereinafter described portion of the alley in Block 87, Town of La Porte, Harris County, Texas, is not suitable, needed, or beneficial to the public as a public road, street, or alley, and the closing of the hereinafter described portion of the alley in Block 87, Town of La Porte, Harris County, Texas, is for the protection of the public and for the public interest and benefit, and that the hereinafter described portion of. the alley in Block 87, Town of La Porte, Hams County, Texas, should be vacated, abandoned, and permanently closed. BE IT ORDAlNED BY THE CITY COUNCn.. OF THE CITY OF LA PORTE: Section 1. Under and by virtue of the power granted to the City of La Porte under its home rule charter ~d Chapter 253, Section 253.qOI, Texas Local Government Code, the hereinafter described portion of the alley in Block 87, Town of La Porte, Harris County, Texas, is hereby permanently vacated, abandoned, and closed by the City of La Porte, to wit: Ordinance No. 98- .2 e COpy 2 That portion of the alley in Block 87, Town of La Porte, Harris County, Texas, situated between Lots 2 through 16 and Lots 17 through 31, Block 87, Town of La Porte, Harris County, Texas 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, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered, and formally acted upon. The City Council further ratifies, approves, and confirms such written notice and the contents and posting thereof Section 3. This ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, TIDS 22ND DA,\:, OF JUNE, 1998. CITY OF LA PORTE ~~y~ By: Norman L. Malone, Mayor ATTEST: ~~fv .JW.ui1 Mart a Gillett, City Secretary tz;;J~ Knox W. Askins, City Attorney ~- __~':- \. '.,--1 "_--!_,-=~ -0+~~~~~~~Lr~;~3i~I; ~~ ,~ La Porte Independent S!ool District EXCELLENCE. . . a LaPO\'te ISO tradition lolln E. Sawyer. Ed. D. SuperinrendentofSchoo~ COpy BOARD OF TRUSTEES Bill Bentley President Rachel H. Hampton Vice President Mike McLaugialin Secretary June 4, 1998 Henrietta Allen Cleo Davison Charlie G. Perry Gordon Westmoreland Trustees Mr. Doug Kneupper City Engineer, City of La Porte 604 W. Fainnont Parkway La Porte, TX 77571 Mr. Kneupper, The La Porte Independent School District would like alter our request for the alley closing on Block 87, City of La Porte. Please remove the north twenty-five (25) feet oflots one (1) through thirty-two (32) from the request. As soon as the District completes the accusation oflot 32 we will make an additional request for the closure of the final twenty-five feet. Thank you and all of the Planning and Inspection Department for your help. If you have any further questions, please do not hesitate to call on me. Sincerely, ~~~ Executive Director of Operations LaPorte I.S.D. . Cc: Jerry Bevel, CLR Architects David Walker, Comex - 301 E3st Fairmont P3rkway La Porte. Texas 77571 Public Information OffiCI! (281) 842-2690 F3X (281) 842-2694 EXHIBIT "B" Superint~ndent'3 Office (21111 842-2551 Business Office (2811 842-2175 Instnaction Department (21111 ll42-2552 Personnel Services (281) 842-2556 N. ''E'' ST. COpy I-- if) ", ( 1h -1 I ~6 "'1 I )7 J.....J I \ I \ PROPOSED CLOSING \\- ~, W. MADISON , I-- I-- if) if) -0 -0 l R, '- c 7 C tlJ 6 I"') N L --c . z z ...r:: -f--J ~ z W. TYLER ST. 1 82 W. ADAMS ST. I- if) -f--J (/) ,,-- z EXH I BIT IIA" e, , , "-- ., , - . .~. .. ~ . .R,;l__ " ~~ f# --.oj ..:~- -'" e '., '. " e e FROM THE DESK OF MARTHA GILLE1T CITY SECRETARY CITY OF LA PORTE, TEXAS June 22, 1998 The attached information was received after the agenda was distributed. The information provided goes with items 7 & 8. Thank you, Martha . . MORONEY, BEISSNER & CO., INe. Municipal Financial Advisors RECEIVED Two Post Oak Central Bldg. 1980 Post Oak Blvd., Suite 2100 Houston, Texas 77056 JUN 1 8 1998 CITY SECRETARY'S OFFICE 713/960-8900 713/960-8904 Facsimilie June 16, 1998 Honorable Mayor Norman Malone City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Dear Mayor, I want to thank you, Bob Herrera, John Joems and Jeff Litchfield for accompanying Moss and me on our recent trip to New York City to present our request for Bond Ratings to Moody's Investors Service, Inc. and Standard & Poor's. The presentations made to both rating services were most thorough and professional, clearly demonstrating the high caliber of management both politically and administratively that the City of La Porte possesses. It has been 'our experience that both Moody's and Standard & Poor's weigh their rating decision heavily on their judgment of the quality of management that a municipality demonstrates. This is a subjective judgment I know and it is our experience that having the City's management team personally involved in the rating interviews is very persuasive, particularly when management demonstrates the expertise of La Porte's Mayor, City Manager and staff The presentation booklet prepared by Bob, John and Jeff is excellent and most completely demonstrates the superb level of management guiding the City to the excellent financial condition it ha~ today. I know the rating analysts at Moody's and Standard & Poor's were very imp:-essed with this presentation. We have been informed by Standard & Poor's that they have assigned ratings of "A+" to the General Obligation Bonds and "A" to the Water & Sewer Revenue Bonds. The General Obligation Bond rating is the same as the last rating and the rating on the Revenue Bonds is an upgrade from "A-". Moody's has assigned ratings of "Aa3" to the General Obligation Bonds and "A2" to the Water & Sewer Revenue Bonds. The General Obligation Bonds rating is an upgrade from "A" and the rating on the Revenue Bonds is an upgrade from "Baa 1 " . Established in 1919 e e Honorable Norman Malone June 16, 1998 Page 2 It might be helpful for you to know the various rating categories and they are as follows: Moody's "Aaa" S&P's "AAA" "Aa"(1)(2)(3) "A"(1)(2)(3) "Baa"(l )(2)(3) "AN'(+)(-) "A"(+)(-) "BBB"(+)(-) All the ratings shown above indicate the Bonds are of investment quality. The rating below "Baa" and "BBB" respectively, indicate the Bonds are speculative investments with some possibility of default. There typically is approximately 0.25% variation in the interest rate that bonds sell for between the rating categories. For example if the City G.O. Bonds were rated Moody's "A" and S&P's "BBB" instead of Moody's "Aa3" and S&P's "A+" the interest cost would be approximately $70,000 higher. Once again we thank you, Bob, Jeff and John for your participation in the rating interview process and we 'know it was in the best interest of the City's credit rating to have you all there. Sincerely, f [kV1;f:k~ R. David Fetzer II IS President l111~~ ~ ~~ Moss K. Fetzer Vice President RDF/MKF:smt cc: City Council City Manager Asst. City Manager Asst. City ManagerlFinance e e MORONEY, BEISSNER & CO., INe. Municipal Financial Advisors Two Post Oak Central Bldg. 1980 Post Oak Blvd., Suite 2100 Houston, Taas 77056 713/960-8900 713/960-8904 Facsimilie June 16, 1998 ADDENDUM CITY OF LA PORTE, TEXAS (Harris County) $2,500,000 General Obligation Bonds, Series 1998 and $1,250,000 Waterworks and Sewer System Revenue Bonds, Series 1998 "QUALIFIED TAX-EXEMPT OBLIGATIONS" SELLING: June 22, 1998 6:00 P.M., CDST RATINGS: The following ratings have been assigned: Moody's Insured Underlying S&P's Insured Underlying G.O.Bonds ............. "Aaa" "AaJ" "AAA" "A+" Water & Sewer Revenue Bonds......... "Aaa" "A2" "AAA" "A" Established in 1919 , - , , e e ... ~ . , .QUEST FOR CITY COUNCIL AGENATEM AGENDA DATE June 22. 1998 REQUESTED BY Robert T. Herrera. City Manaaer _ REPORT; _ RESOLUTION; ~ ORDINANCE; Moroney, Beissner & Co. Inc. will be receiving bids on behalf of the City of La Porte until 6:00 pm on Monday, June 22, 1998 for $2.500,000 in General Obligation Bonds and $1,250,000 in Waterworks and Sewer System Revenue Bonds. Both issues are Qualified Tax Exempt Obligations. The Bonds will be dated June 15, 1998. Interest on the Bonds will accrue from such date and will be due on March 15, 1999 and each September 15 and March 15 thereafter until final maturity. The proceeds from the bonds will be used for the following projects: $2,000,000 in General Obligation for Drainage Improvements 500,000 in General Obligation for the Seabreeze Park and a Regional Park Site in West La Porte. $1,250,000 in Revenue for improvements to the Utility System. With the exception of the $1,500,000 available for future opening of the Landfill, this issuance will complete the projects approved by the voters in 1985. ACTION REQUIRED BY COUNCIL: Approve ordinances authorizing the issuance of $2,500,000 in General Obligation Bonds and $1,250,000 in Revenue Bonds. FUND 004 & 007 ACCT NUM: Various FUNDS AVAILABLE: Yes APPROVED FOR CITY COUNCIL AGENDA ~ l){J T. \~^- ROBERT T. HERRERA, CITY MANAGER Co-I B-CY 11 DATE e e COpy CERTIFICATE FOR 'ORDINANCE We, the undersigned Mayor and City Secretary of the City of La Porte, Texas (the "City"), hereby certify as follows: 1. The City Council of the City (the "Council") convened in regular session, open to the public, on June 22, 1998 at the meeting place designated in the notice (the "Meeting"), and the roll was called of the members, to wit: Norman L. Malone, Mayor, and the following City Councilmembers: Guy Sutherland, Chuck Engelken, Howard Ebow, Oeotis Gay, Charlie Young, Jerry Clarke, Bob McLaughlin, and Alton Porter. All members of the Council were present, except Mayor Malone . constituting a quorum. Whereuponamong other business, the following was transacted at the Meeting: a written ordinance entitled ORDINANCE AUTHORIZING THE ISSUANCE OF $2,500,000 CITY OF LA PORTE, TEXAS GENERAL OBLIGATION BONDS, SERIES 1998, AND ALL OTHER MATTERS RELATED THERETO (the "Ordinance") was duly introduced for the consideration of the Council and read in full. It was then duly moved and seconded that the Ordinance be finally passed and adopted; and after due discussion, such motion, carrying with it the adoption of the Ordinance, prevailed and carried by the following vote: YES: 8 NOES: 0 ABSTENTIONS: 0 2. A true, full, and correct copy of the Ordinance adopted at the Meeting is attached to and follows this Certificate; the Ordinance has been duly recorded in the Council's minutes of the Meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Council's minutes of the Meeting pertaining to the adoption of the Ordinance; the persons named. in the above and foregoing paragraph are duly chosen, qualified, and acting officers and members of the Council as indicated therein; each of the officers and members of the Council was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the Meeting, and that the Ordinance would be introduced and considered for adoption at the Meeting, and each of such officers and members consented, in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and public notice of the time, place, and purpose of the Meeting was given, all as required by Chapter 551, Texas Government Code. 3. Martha Gillett is the duly appointed and acting City Secretary of the City. SIGNED AND SEALED this June 22, 1998. City ecretary City of La Porte, ,Texas ~~y~ Mayor Pro Tern City of La Porte, Texas (CITY SEAL) e e COpy ORDINANCE NO. 98-2254 ORDINANCE AUTHORIZING THE ISSUANCE OF $2,500,000 CITY OF LA PORTE, TEXAS GENERAL OBLIGATION BONDS, SERIES 1998, AND ALL OTHER MATIERS RELATED THERETO WHEREAS, at an election duly called and held for and within the City of La Porte, Texas (the "City") on June 15, 1985, the duly qualified resident electors of the City authorized the City Council of the City (the "Council") to issue bonds of the maximum amount of $15,500,000 (the "Voted Authorization"), the Council now deems it to be in the best interest of the City to issue $2,500,000 of the Voted Authorization, being $500,000 for park improvements and $2,000,000 for drainage improvements; and WHEREAS, the bonds hereinafter authorized are to be issued and delivered pursuant to Article 701 et. seq, Vernon's Texas Civil Statutes, as amended, Article 823, Vernon's Texas Civil Statutes, as amended, and the Charter of the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, THAT: Section I. AMOUNT AND PURPOSE OF THE BONDS. The bonds of City of La Porte are hereby authorized to be issued and delivered in the aggregate principal amount of $2,500,000, for the purpose of providing funds for park and drainage improvements. Section 2. DESIGNA TION. DATE. DENOMINATIONS. NUMBERS. MATURITIES. AND INTEREST RA TES OF BONDS. Each bond issued pursuant to this Ordinance shall be designated: "CITY OF LA PORTE, TEXAS GENERAL OBLIGATION BOND, SERIES 1998", and initially there shall be issued, sold, and delivered hereunder fully registered bonds, without interest coupons, dated June 15, 1998, in the respective denominations and principal amounts hereinafter stated, payable to the respective initial registered owners thereof (as designated in Section 14 hereof), or to the registered assignee or assignees of said bonds or any portion or portions thereof (in each case, the "Registered Owner", "Owner", or "owner"). The term "Bonds" as used in this Ordinance shall mean and include collectively the bonds initially issued and delivered pursuant to this Ordinance and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. The Initial Bond shall be numbered I-I and the definitive Bonds shall be numbered R-I upward and shall be in the denomination of $5,000 each or any integral multiple thereof, shall mature and be payable serially on March 15 in each of the years and in the principal amounts, respectively as set forth in the following schedule, and shall bear interest from the date specified in the FORM OF BOND set forth in this Ordinance to their respective dates of maturity or redemption prior to maturity at the following rates per annum: INTEREST INTEREST YEARS AMOUNTS RATES YEARS AMOUNTS ' RATES 2000 $125,000 6.25% 2010 $125,000 4.25% 2001 125,000 6.25 2011 125,000 4.25 2002 125,000 6.25 2012 125,000 4.25 2003 125,000 6.25 2013 125,000 4.25 2004 125,000 6.25 2014 125,000 4.25 2005 125,000 6.25 2015 125,000 4.25 2006 125,000 6.25 2016 125,000 4.25 2007 125,000 6.25 2017 125,000 4.25 2008 125,000 5.00 2018 125,000 4.25 2009 125,000 4.25 2019 125,000 4.25 e e COpy Said interest shall be payable in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance. Section 3. CHARACTERISTICS OF THE BONDS. (a) Registration. Transfer. and Exchange: Authentication. The City shall keep or cause to be kept at the principal corporate trust office of Chase Bank of Texas, National Association, Houston, Texas (the "Paying Agent/Registrar") books or records for the registration of the transfer and exchange of the Bonds (the "Registration Books"), and the City hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers and exchanges under such reasonable regulations as the City and Paying Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such registrations, transfers, and exchanges as herein provided. The Mayor and the City Secretary are authorized to enter into a Paying Agent/Registrar Agreement substantially in the form of Exhibit "A", attached hereto. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. To the extent possible and under reasonable circumstances, all transfers of Bonds shall be made within three business days after request and presentation thereof. The City shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. The Paying Agent/Registrar's standard or customary fees and charges for making such registration, transfer, exchange and delivery of a substitute Bond or Bonds shall be paid as provided in the FORM OF BOND set forth in this Ordinance. Registration of assignments, transfers, and ex- changes of Bonds shall be made in the manner provided and with the effect stated in the FORM OF BOND set forth in this Ordinance. Each substitute Bond shall bear a letter and/or number to distinguish it from each other Bond. Except as provided in (c) below, an authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the Paying Agent/Registrar's Authentication Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so executed. The Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered for transfer and exchange. No addi- tional ordinances, orders, or resolutions need be passed or adopted by the governing body of the City or any other body or person so as to accomplish the foregoing transfer and exchange of any Bond or portion thereof, and the Paying Agent/ Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein[, and said Bonds shall be of type composition printed on paper with lithographed or steel engraved borders of customary weight and strength]. Pursuant to Article 717k-6, Vernon's Texas Civil Statutes, as amended, and particularly Section 6 thereof, the duty of transfer and exchange of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of said certificate, the transferred and exchanged Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Bonds which initially were issued and delivered pursuant to this Ordinance, approved by the Attorney General, and registered by the Comptroller of Public Accounts. (b) Payment of Bonds and Interest. The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of and interest on the Bonds, all as provided in this Ordinance. The Paying Agent/ Registrar shall keep proper records of all payments made by the City and the Paying Agent/Registrar ~ith respect to the Bonds. (c) In General. The Bonds (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed, sealed, executed, and authenticated, (vii) shall have the principal of and interest on the Bonds be payable, and (viii) shall be administered and the Paying Agent/Registrar and the City shall have certain duties and responsibilities with respect to the Bonds, all as pro- 2 e e CO'-PV' " , .- ,..",. - I ..., " . . , ',f< ~ 1. vided, and in the manner and to the effect as required or indicated, in the FORM OF BOND set forth in this Ordinance. The Initial Bond shall be delivered to the initial purchaser and are not required to be, and shall not be, authenticated by the Paying AgentlRegistrar, but on each substitute Bond issued in exchange for the Initial Bonds or any Bond or Bonds issued under this Ordinance the Paying AgentlRegistrar shall execute the PA YlNG AGENTIREGISTRAR'S AUTHENTICATION CERTIFICATE, in the form set forth in the FORM OF BOND. (d) Substitute PavinlZ AlZentlRelZistrar. The City covenants with the registered owners of the Bonds that at all times while the Bonds are outstanding the City will provide a competent and legally qualified bank, trust company, financial institution, or other agency to act as and perform the services of Paying AgentlRegistrar for the Bonds under this Ordinance, and that the Paying AgentlRegistrar will be one entity. The City reserves the right to, and may, at its option, change the Paying AgentlRegistrar upon not less than 120 days written notice to the Paying AgentlRegistrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the eyent that the entity at any time acting as Paying AgentlRegistrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the City covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying AgentlRegistrar under this Ordinance. Upon any change in the Paying AgentlRegistrar, the previous Paying AgentlRegistrai' promptly shall transfer and deliver the Registration Books (or a copy thereot), along with all other pertinent books and records relating to the Bonds, to the new Paying AgentlRegistrar designated and appointed by the City. Upon any change in the Paying AgentlRegistrar, the City promptly will cause a written notice thereof to be sent by the new Paying AgentlRegistrar to each registered owner of the Bonds, by United States mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agentl Registrar. By accepting the position and performing as such, each Paying AgentlRegistrar shall be deemed to have agreed to the provisions of this Ordinance; and a certified copy of this Ordinance shall be delivered to each Paying AgentlRegistrar. Section 4. FORM OF BONDS. The form of the Bonds, including the Form of Paying AgentlRegistrar's Authentication Certificate, the Form of Assignment, the Form of Statement of Insurance, and the Form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the Bonds initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as follows, with such appropriate 'variations, omissions, or insertions as are permitted or required by this Ordinance. FORM OF BOND [Form of Front Panel of Definitive Bond] NO. R- United States of America State of Texas CITY OF LA PORTE, TEXAS GENERAL OBLIGATION BOND, SERIES 1998 PRINCIPAL AMOUNT $ INTEREST RATE MATURITY DATE ISSUE DATE June IS, 1998 CUSIP NO. REGISTERED OWNER: PRINCIPAL AMQUNT: DOLLARS ON THE MATURITY DATE, specified above; THE CITY OF LA PORTE, a home rule city and municipal corporation of the State of Texas (the "City"), hereby promises to pay to the Registered Owner, specified above, or registered assigns (hereinafter called the "registered owner") the Principal Amount, specified above, and to pay interest thereon from the Issue Date, specified above, on March IS, 1999, and semiannually 3 e e CO"'P"'IY:.; ~ t.;. .". 'f.'.h on each September 15 and March 15 thereafter to the Maturity Date, specified above, or the date of redemption prior to maturity, ,at the Interest Rate per annum, specified above; except that if this Bond is required to be authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such princi- pal amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such principal amount shall, bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid in full. THE PRlNCIPAJ,. OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the designated payment office of CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, or its successor, which is the "Paying AgentJRegistrar" for this Bond. The payment of interest on this Bond shall be made by the Paying AgentJRegistrar to the registered owner hereof on each interest payment date by check, dated as of such interest payment date, drawn by the Paying AgentJRegistrar on, and payable solely from, funds of the City required by the ordinance authorizing the issuance of this Bond adopted on June 22, 1998 (the "Bond Ordinance") to be on deposit with the Paying AgentJRegistrar for such purpose as hereinafter pro- vided; and such check shall be sent by the Paying AgentJRegistrar by United States mail, frrst-class postage pre- paid, on each such interest payment date, to the registered owner hereof, at its address as it appeared on the last business day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying AgentJRegistrar, as hereinafter described. ln addition, interest may be paid by such other method, acceptable to the Paying AgentJRegistrar, requeste,d by, and at the risk and expense of, the registered owner. THIS BOND is one of a series of Bonds dated as of June 15, 1998, authorized in accordance with the Constitution and laws of the State of Texas in the original principal amount of $2,500,000 for the purpose of providing funds for park and drainage improvements. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE tHE SAME FORCE AND EFFECT AS IF SET FORTH IN THIS SPACE. IN WITNESS WHEREOF, the City has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the City and countersigned with the manual or facsimile signature of the City Secretary of the City, and has caused the official seal of the City to be duly impressed, or placed in facsimile, on this Bond. CITY OF LA PORTE, TEXAS xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx City Secretary City of La Porte, Texas xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Mayor City of La Porte, Texas [Form of Back Panel of Bond] THE BONDS are issued pursuant to the Bond Ordinance whereunder the City covenants to levy a 'continuing direct annual ad valorem tax on taxable property within the City, not to exceed $2.50 per assessed $100 valuation, as provided in Article XI, Section 5 of the Texas Constitution, for each year while any part of the Bonds are considered outstanding under the provisions of the Bond Ordinance, in sufficient amount to pay interest on each Bond as it becomes due, to provide a sinking fund for the payment of the principal of the Bonds when due, and to pay the expenses of assessing and collecting such tax, all as more specifically provided in the Bond Ordinance. Reference is hereby made to the Bond Ordinance for provisions with respect to the custody 4 . e COpy and application of the City's funds, remedies in the event of a default hereunder or thereunder, and the other rights of the registered owner. THIS BOND IS TRANSFERABLE OR EXCHANGEABLE only upon presentation and surrender at the principal corporate office of the Paying Agent/Registrar. If this Bond is being transferred, it shall be duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner, or his authorized representative, subject to the terms and conditions of the Bond Ordinance. IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, a Sunday, a legal holiday, or a day on which banking institutions in the city where the designated payment office of the Paying Agent/Registrar is located are authorized by law or executive order to close, or the United States Postal Service is not open for business, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close, or the United States Postal Service is not open for business; and payment on such date shall have the same force and effect as if made on the original date payment was due. ON MARCH 15,2009, or on any date thereafter, the Bonds of this series may be redeemed prior to their scheduled maturities, at the option of the City, with funds derived from any available and lawful source, as a whole, or in part (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000) at the redemption price of the principal amount of Bonds called for redemption, plus accrued interest thereon to the date fixed for redemption. If less than all of the Bonds are to be redeemed, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot Bonds, or portions thereof, within such maturity or maturities and in such principal amounts, for redemption. AT LEAST 30 days prior to the date for any such redemption, a notice of such redemption shall be sent by the Paying Agent/Registrar by United States mail, first class, postage prepaid, to the registered owner of each Bond, or portion thereof to be redeemed, at its address as it appeared on the Registration Books on the 45th day prior to such redemption date and to major securities depositories, national bond rating agencies, and bond information services; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the date fixed for any such redemption, due provision shall be made by the City with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of this Bond or any portion hereof.: If a portion. of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Bon~. Ordinance. ALL BONDS OF THIS SER}ES are issuable solely as fully registered Bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be assigned, transferred, and exchanged for a like aggregate principal amount of fully registered Bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this Bond to the 5 . e COpy Paying AgentlRegistrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying AgentlRegistrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying AgentlRegistrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be registered. The Form of Assignment printed or endorsed on this Bond may be executed by the registered owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying AgentlRegistrar may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the registered owner. The person requesting such transfer and exchange shall pay the Paying Agent/Registrar's reasonable standard or customary fees and charges for transferring and exchanging any Bond or portion thereof. In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the person requesting such assignment, transfer, or exchange, as a condition precedent to' the exercise of such privilege. The foregoing notwithstanding, in the case of the exchange of a portion of a Bond which has been redeemed prior to maturity, as provided herein, and in the case of the exchange of an assigned and transferred Bond or Bonds or any portion or portions thereof, such fees and charges of the Paying AgentlRegistrar will be paid by the City. The Paying AgentlRegistrar shall not be required to make any such transfer or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date or (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying AgentlRegistrar for the Bonds is changed by the City, resigns, or otherwise ceases to act as such, the City has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and cause written notice thereof to be mailed to the registered owners of the Bonds. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the City, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between each registered owner hereof and the City. IT IS HEREBY CERTIFIED, RECITED, AND COVENANTED THAT this Bond has been duly and validly authorized, issued, and delivered; all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; and ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due, and as such principal matures, have been levied and ordered to be levied against all taxable property in the City, and have been pledged for such payment, within the limit prescribed by law. FORM OF INITIAL BOND , The Initial Bond shall be in the form set forth above for the Definitive Bonds. exceot the followinl! shall reo lace the headinl! and the first oaragraoh and the Bond will be a continuous document: NO. I-I $2,500,000 United States of America State of Texas CITY OF LA PORTE, TEXAS GENERAL OBLIGATION BOND, SERIES 1998 Issue Date: JUNE 15, 1998 Registered Owner: CEDE & CO. 6 e e COpy Principal Amount: TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) THE CITY OF LA PORTE, TEXAS (the "City"), for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner, specified above, or the registered assigns thereof (the "Registered Owner"), the Principal Amount, specified above, with principal installments payable on March IS in each of the years, and bearing interest at per annum rates in accordance with the following schedule: YEARS OF STATED MATURITIES PRINCIPAL INSTALLMENTS $ INTEREST RATE % (Information to be inserted from schedule in Section 2 hereof.) INTEREST on the unpaid Principal Amount hereof from the Issue Date, specified above, or from the most recent interest payment date to which interest has been paid or duly provided for until the Principal Amount has become due and payment thereof has been made or duly provided for shall be paid computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on March 15 and September 15 of each year, commencing March 15, 1999. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The final payment of principal of this Bond shall be paid to the Registered Owner hereof upon presentation and surrender of this Bond at final maturity, at the designated payment office of CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, Houston, Texas, which is the "Paying AgentlRegistrar" for this Bond. The payment of principal installments and interest on this Bond shall be made by the Paying AgentlRegistrar to the Registered Owner hereof as shown by the Registration Books kept by the Paying AgentlRegistrar at the close of business on the Record Date by check drawn by the Paying AgentlRegistrar on, and payable solely from, funds of the City required to be on deposit with the Paying AgentlRegistrar for such purpose as required by the ordinance authorizing the issuance of this Bond adopted on June 22, 1998 (the "Bond Ordinance"); and such check shall be sent by the Paying AgentlRegistrar by United States mail, postage prepaid, on each such payment date, to the registered owner hereof at its address as it appears on the Registration Books kept by the Paying AgentlRegistrar, as hereinafter described. The record date ("Record Date") for payments hereon means the last businClSs day of the month preceding a scheduled payment. In addition, interest may be paid by such other method, acceptable to the Paying AgentlRegistrar, requested by, and at the risk and expense, of the registered owner. In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, il new record date for such payment (a "Special Record Date") will be established by the Paying AgentlRegistrar, if and when funds for the payment thereof have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due payment (the "Special Payment Date", which shall be 15 calendar days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the address of the Registered Owner appearing on the, books of the Paying AgentlRegistrar at the close of business on the last business day next preceding the date of mailing of such notice. The City covenants with the Registered Owner that no later than each principal installment payment date and interest payment date for this Bond it will make available to the Paying AgentlRegistrar the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bond, when due, in the manner set forth in the Ordinance dermed below. FORM OF PAYING AGENTIREGlSTRAR'S AUTHENTICATION CERTIFICATE. · Not required on Initial Bond PAYING AGENT/REGlSTRAR'S AUTHENTICATION CERTIFICATE 7 . e C"~"""'~'''''W'' r' . .~. " , .. , . . '..'. . , . .. , - , . '" .. " . : ,,~' " . . It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in the text of this Bond; and that this Bond has been issued in exchange for, a bond, bonds, or a portion of a bond or bonds of a Series which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated: CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, Paying AgentlRegistrar By Authorized Signature FORM OF STATEMENT OF INSURANCE STATEMENT OF INSURANCE Financial Security Assurance Inc. ("Financial Security"), New York, New York, has delivered its municipal bond insurance policy with respect to the scheduled payments due of principal of and interest on this Bond to Chase Bank of Texas, National Association, Houston, Texas, or its successor, as paying agent for the Bonds (the "Paying Agent"). Said Policy is on file and available for inspection at the principal office of the Paying Agent and a copy thereof may be obtained from Financial Security or the Paying Agent. FORM OF ASSIGNMENT ASSIGNMENT FOR VALUE RECEIVED, the undersigned registered owner of this Bond, or duly authorized representa- tive or attorney thereof, hereby assigns this Bond to I I (Assignee's Social Securily or Tax Payer Identification number) (Print or lype Assignee's name and address, including zip code) and herebyirrevocablyconstitutesand appoints attorney to transfer the registration of this Bond on the Paying AgentlRegistrar's Registration Books with full power of substitution in the premises. Dated Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature above must correspond with the name of the Registered Owner as it appears upon the front of this Bond in every particular, without alteration or enlargement or any change whatsoever. The following abbreviatiOns, when used in the assignment above or on the face of the within Bond, shall be construed as though they were written out 'in full according to applicable laws or regulations: 8 e e C'O'p~ I ' ,,:" """, ',,: "'., ': . "'.. ,', 'I" ,'i ,,',' "', ',' ..... . .".. d1; . TEN COM - as tenants in common TEN ENT . as tenants by the entireties JT TEN - as joint tenant with right of survivorship and not as tenants in common UNIF GIFT MIN ACT - Custodian (Cust) (Minor) under Uniform Gifts to Minor Act (State) Additional abbreviations may also be used though not in the list above. FORM OF REGlSTRA nON CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS* *To be printed or attached to Initial Bond only COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this COMPTROLLER'S SEAL Comptroller of Public Accounts of the State of Texas [END OF FORMS] Section 5. TAX LEVY. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the City at an official depository bank of the City. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the CitY, and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Bonds or interest thereon are outstanding and unpaid, the Council shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on the Bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of its Bonds as such principal matures (but never less than 2% of the original principal amount of said Bonds as a sinking fund each year); and said tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the City for each year while any of the Bonds or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and de- posited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such payment, within the limit prescribed by law. Section 6. DISPOSITION OF BOND PROCEEDS. The proceeds of the Bonds shall be placed into the Interest and Sinking Fund and the ConstI'\lction Fund of the City as follows: (a) Interest and Sinkin!! Fund. An amount equal to the accrued interest on the Bonds from the date of the Bonds to the date of delivery to the Initial Purchaser shall be deposited in the Interest and Sinking Fund. 9 e e C'" 0" p' ""'\1' ;, .: t: . :' ;', !~. . ~ .: .:. . . . ',:." .!t: '.~ . . . j,' .. ,r .' ~ (b) Construction Fund. The proceeds of the Bonds remaining after the above described deposit into the Interest and Sinking Fund shall be placed in the Construction Fund (hereby created) to be used by the City for the purposes described in this Ordinance. Section 7. REMEDIES OF OWNERS. In addition to all rights and remedies of any Owner of the Bonds provided by the laws of the State of Texas, the City and the Council covenant and agree that in the event the City defaults in the payment of the principal of or interest on any of the Bonds when due, fails to make the payments required by this Ordinance to be made into the Interest and Sinking Fund, or defaults in the observance or performance of any of the covenants, conditions, or obligations set forth in this Ordinance, the owner of any of the Bonds shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the Council and other officers of the City to observe and perform any covenant, obligation, or condition prescribed in this Ordinance. No delay or omission by any owner to exercise any right or power accruing to such owner upon default shall impair any such right or power,or shall be construed to be a waiver of any such default or acquiescence therein, and every such right or power may be exercised from time to time and as often as may be deemed expedient. The specific remedies mentioned in this Ordinance shall be available to any owner of any of the Bonds and shall be cumulative of all other existing remedies. Section 8. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the extent provided in subsection (e) of this Section, when payment of the principal of such Bond, plus interest thereon to the due date (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof (including the giving of any required notice of redemption) or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent/Registrar for such payment (A) lawful money of the United States of America sufficient to make such payment or (B) Government Obligations (hereinafter defined) which mature as to principal and interest in such amounts and at such times as will insure the availability, without n:iinvestment, of sufficient money to provide for such payment, and when proper arrangements have been made by the City with the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as afore- said, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations. (b) Any money so deposited with the Paying Agent/Registrar may at the written direction of the City also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from such Government Obligations received by the Paying Agent/Registrar which is not required for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited, shall be turned over to the City, or deposited as directed in writing by the City. (c) The term "Government Obligations" as used in this Section, shall mean direct obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which may be United States Treasury obligations such as its State and Local Government Series, which may be in book-entry form. (d) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall perform the services of Paying.. Agent/Registrar for such Defeased Bonds the same as if they had not been defeased, and the City shall make proper arrangements to provide and pay for such services as required by this Ordinance. Section 9. BOOK-ENTRY ONLY SYSTEM. It is intended that the Bonds initially be registered so as to participate in a securities depository system (the "DTC System") with The Depository Trust Company, New York, New York, or any successor entity thereto ("DTC"), as set forth herein. The definitive Bonds shall be 10 - e COpy issued in the form of a separate single defmitive Bond for each maturity. Upon issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the outstanding Bonds shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including a "Letter of Representation" (the "Representation Letter"). With respect to the Bonds registered in the name of Cede & Co." as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds the Bonds from time to time as securities depository (a "Depository Participant") or to any person on behalf of whom such a Depository Participant holds an interest in the Bonds (an "Indirect Participant"). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Bonds, or (ii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a registered owner of a Bond, of any amount with respect to principal of, premium, if any, or interest on the Bonds. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a Bond evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the holder, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall notify the Paying Agent/Registrar, DTC, and Depository Participants of the availability within a reasonable period of time through DTC of certificated certificates, and the Bonds shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Bonds may be registered in whatever names the registered owners of Bonds transferring or exchanging the Bonds shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. Section 10. DAMAGED. MUTILATED. LOST. STOLEN. OR DESTROYED BONDS. (a) Reolacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. (b) Aoolication for Reolacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the registered owner applying for a replacement bond shall furnish to the City and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall furnish to the City and to the Paying Agent/Registrar evidence to their II e e C,;.' '(Q)~::D 11 .. , ." -.-. . 'I' . . ". '~"..'~, ',' satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying AgentlRegistrar for cancellation the Bond so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the City may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. (d) Char2e for Issuin2 Reolacement Bonds. Prior to the issuance of any replacement bond, the Paying AgentlRegistrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) Authority for Issuin2 Reolacement Bonds. In accordance with Article 717k-6, Vernon's Texas Civil Statutes, as amended, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of further action by the governing body of the City or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent! Registrar, and the Paying AgentlRegistrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 4 of this Ordinance for Bonds issued in exchange for other Bonds. Section 11. CUSTODY. APPROVAL. AND REGISTRATION OF BONDS: BOND COUNSEL'S OPINION. AND CUSIP NUMBERS. The Mayor of the City is hereby authorized to have control of the Bonds initially issued and delivered hereunder and all necessary records and proceedings pertaining to the Bonds pending their delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Bonds said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate attached to such Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on such Certificate. The approving legal opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P., Bond Counsel and the assigned CUSIP numbers may, at the option of the City, be printed on the Bonds issued and delivered under this Ordinance, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered owners of the Bonds. Section 12; COVENANTS OF THE CITY. (a) General Covenants. The City covenants and represents that: (i) The City is a duly incorporated Home Rule City, having more than 5000 inhabitants, operating and existing under the Constitution and laws of the State of Texas, and is duly authorized under the laws of the State of Texas to .create and issue the Bonds; all action on its part for the creation and issuance of the Bonds has been duly and effectively taken; and the Bonds in the hands of the Owners thereof are and will be valid and enforceable obligations of the City in accordance with their terms; and (ii) The Bonds shall be ratably secured in such manner that no one Bond shall have preference over other Bonds. (b) Soecific Covenants. The City covenants and represents that, while the Bonds are outstanding andlunpaid, it will: 12 e e ~(Q)~V (i) Levy an ad valorem tax that will be sufficient to provide funds to pay the current interest on the Bonds and to provide the necessary sinking fund, all as described in this Ordinance; and (ii) Keep proper books of record and account in which full, true, and correct entries will be made of all dealings, activities, and transactions relating to the Funds created pursuant to this Ordinance, and all books, documents, and vouchers relating thereto shall at all reasonable times be made available for inspection upon request from any Owner. (c) Covenants Ree:ardine: Tax Matters. The City covenants to take any action to maintain, or refrain from any action which would adversely affect, the treatment of the Bonds as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in "gross income" for federal income tax purposes. In furtherance thereof, the City specifically covenants as follows: (i) To refrain from taking any action which would result in the Bonds being treated as "private activity bonds" within the meaning of section 141(a) of the Code; (ii) To take any action to assure that no more than 10% of the proceeds of the Bonds or the projects financed therewith are used for any "private business use," as defined in section 141(b)(6) of the Code or, if more than 10% of the proceeds or the projects financed therewith are so used, that amounts, whether or not received by the City with respect to such private business use, do not under the terms of this Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10% of the debt service on the Bonds, in contravention of section 141 (b )(2) of the Code; (iii) To take any action to assure that in the event that the "private business use" described in paragraph (ii) hereof exceeds 5% of the proceeds of the Bonds or the projects financed therewith, then the amount in excess of 5% is used for a "private business use" which is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (iv) To take any action to assure that no amount which is greater than the lesser of $5,000,000 or 5% of the proceeds of the Bonds is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (v) To refrain from taking any action which would result in the Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code; (vi) Except to the extent pe~itted by section 148 of the Code and the regulations and rulings thereunder, to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b )(2) of the Code) which produces a materially higher yield over the term of the Bonds. (vii) To otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating: to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance .refundings); (viii) Except to the extent otherwise provided in section 148(t) of the Code and the regulations and rulings thereunder, to 'pay to the United States of America at least once during each five year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 90% of the "Excess Earnings," within the meaning of section 148(t) of the Code, and to pay to the United States of America, not later than 60 days after the Bonds have been paid in full, 100% of the amount then required to be paid as a result of Excess Earnings under section 148(t) of the Code; 13 e e C' 'CQ)'" ~'W" .. a' ::.::. . ". .,;' ..;;"1 "." "', ..: -,' " .... ",. (ix) To maintain such records as will enable the City to fulfill its responsibilities under this subsection and sections 141 and 148 of the Code and to retain such records for at least six years following the fmal payment of principal and interest on the Bonds; and (x) To comply with the information reporting requirements of section 149(e) of the Code. For the purposes of the foregoing, in the case of a refunding bond, the term proceeds includes transferred proceeds and, for purposes of paragraphs (ii) and (Hi), proceeds of the refunded bonds. The covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the U.S. Department of Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Bonds, the City will not be required to comply with any covenant contained herein to the extent that such modification or expansion, in the opinion of nationally-recognized bond counsel, will not adversely affect the exclusion from gross income of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are here- after promulgated which impose additional requirements which are applicable to the Bonds, the City agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally-recognized bond counsel, to preserve the exclusion from gross income of interest on the Bonds under section 103 of the Code. Proper officers of the City charged with the responsibility of issuing the Bonds are hereby authorized and directed to execute any documents, certificates, or reports required by the Code and to make such elections, on behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. Notwithstanding any other provision in this Resolution, to the extent necessary to preserve the exclusion from gross income of interest on the' Bonds under section 103 of the Code the covenants contained in this subsection shall survive the later of the defeasance or discharge of the Bonds. (d) Covenants Regardim! Sale. Lease. or Disposition of Financed ProperlY. The City covenants that the City will regulate the use of the property financed, directly or indirectly, with the proceeds of the Bonds and will not sell, lease, or otherwise dispose of such property unless (i) the City takes the remedial measures as may be required by the Code and the regulations and rulings thereunder in order to preserve the exclusion from gross income of interest on the Bonds under section 103 of the Code or (ii) the City seeks the advice of nationally-recognized bond counsel with respect to such sale, lease, or other disposition. Section 13. DESIGNATION AS OUALIFIED TAX-EXEMPT OBLIGATIONS. The City hereby designates the Bonds as "qualified tax-exempt obligations" as defined in section 26S(b)(3) of the Code. In furtherance of such designation, the City represents, covenants, and warrants the following: (a) during the calendar year in which the Bonds are issued, the City (including any subordinate entities) has not designated nor will designate obligations, which when aggregated with the Bonds, will result in more than $10,000,000 of "qualified tax-exempt obligations" being issued; (b) the City reasonably anticipates that the amount of tax-exempt obligations issued during 1998 by the City (including any subordinate entities) will not exceed $10,000,000; and (c) the City will take such action which would assure, or to refrain from such action which would adversely affect, the treatment of the Bonds as "qualified tax-exempt obligations." Section 14. SALE OF BONDS. The sale of the Bonds to the Initial Purchasers pursuant to the taking of competitive bids at a price of par, plus accrued interest to the date of delivery and a premium of $-0- is hereby confirmed. It is hereby officially found, determined, and declared that the Initial Purchasers submitted the bid which results in the lowest true interest cost to the City and delivery of the Bonds to the Initial Purchasers shall be made as soon as practicable after the adoption of this Ordinance, upon payment therefor, in accordance with the terms of sale. .. The Initial Bond shall be registered in the name of the Initial Purchasers. The officers of the 14 e e CG(Q)~W City are hereby authorized and directed to execute and deliver such certificates, instructions, or other instruments as are required or necessary to accomplish the purposes of this Ordinance. Section 15. APPROVALOFOFFICIAL STATEMENT. The City hereby approves the form and content of the Official Statement relating to the Bonds, and any addenda, supplement, or amendment thereto and approves the distribution of such Official Statement in the reoffering of the Bonds by the Initial Purchasers in final form, with such changes therein or additions thereto as the officer executing the same may deem advisable, such determination to be conclusively evidenced by his execution thereof. It is further officially found determined and declared that the statements and representations contained in said Official Statement are true and correct in all material respects to the best knowledge and belief of the Council. Section 16. CONTINUING DISCLOSURE UNDERTAKING. (a) Annual ReDorts. The City shall provide annually to each nationally-recognized municipal securities information repository ("NRMSIR") and to any state information depository ("SID"), within six months after the end of each fiscal year ending in or after 1998, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 15 of this Ordinance, being the information described in Exhibit B hereto. Any financial statements so to be provided shall be (I) prepared in accordance with the accounting principles described in Exhibit B hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, the City shall provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID when and if the audit report on such statements becomes available. If the City changes its fiscal year,.it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or mote documents or may be included by specific reference to any document (including an official statement or other offering document) if it is available from the Municipal Securities Rulemaking Board (the "MSRB") that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (b) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: (i) principal and interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements reflecting financial difficulties; (v) substitution of credit or liquidity providers, or their failure to perform; (vi) adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vii) modifications to rights of holders of the Bonds; (viii) calls; (ix) defeasances; (x) release, substitution, or sale of property securing repayment of the Bonds; and (xi) rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. (c) Limitations. Disclaimers. and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of Rule 15c2-12 (the "Rule"), except that the City in any event will give notice of any deposit made in accordance with Section 17 above that causes the Bonds no longer to be outstanding and any call of Bonds made in connection therewith. The provisions of this Section are for the sole benefit of the Owners and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or 15 e e (G@G9JW claim hereunder to any other person. The City undertakes to provide only the fmancial information, operating data, fmancial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's fmancial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall comprise a breach of or default under this Ordinance for purposes of any other provisions of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended, supplemented, or repealed by the City from time to time under the following circumstances, but not otherwise: (I) to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if the provisions of this Section, as so supplemented or amended, would have permitted an underwriter to purchase or sell Bonds in the present offering in compliance with the Rule and either the Owners of a majority in aggregate principal amount of the outstanding Bonds consent to such amendment, supplement, or repeal, or any State agency or official determines that such amendment, supplement, or repeal will not materially impair the interests of the beneficial owners of the Bonds, (2) upon repeal of the applicable provisions of the Rule, or any judgment by a court of final jurisdiction that such provisions are invalid, or (3) in any other circumstance or manner permitted by the Rule. Section 17. FURTHER PROCEDURES. The Mayor, the City Secretary, the City Manager, the Finance Director, the City's Financial Advisor, and all other officers, employees, attorneys, and agents of the City, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge, and deliver in the name and under the seal and on behalf of the City, all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the Bonds, and the Official Statement. Prior to the initial delivery of the Bonds, the Mayor and Bond Counsel to the City are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized by this Ordinance riecessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Bonds by the Texas Attorney General's office. Section 18. ORDINANCE A CONTRACT: AMENDMENTS. This Ordinance shall constitute a contract with the Owners, from time to time, of the Bonds, binding on the City and its successors and assigns, and shall not be amended or repealed by the City as long as any Bond remains outstanding except as permitted in this Section. The City may, without the consent of or notice to any owners, amend, change, or modify this Ordinance as may be required (i) by the provisions hereof, (ii) in connection with the issuance of any additional bonds, (iii) 16 e e C'" 0"""" p" 'Y ~':- "(1 ',J .',~:, -,: ',; . -... . "3 '_~.:. ..'. ;L for the purpose of curing any ambiguity, inconsistency, or formal defect or omission herein, or (iv) in connection with any other change which is not to the prejudice of the Owners. The City may, with the written consent of the Owners of a majority in aggregate principal amount of Bonds then outstanding affected thereby, and the insurer of any Bonds amend, change, modify, or rescind any provisions of this Ordinance; provided that without the consent of all of the Owners affected, no such amendment, change, modification, or rescission shall (i) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof to the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on additional bonds on a parity with the lien of the Bonds, (ii) give any preference of any Bond over any other Bond, (iii) extend any waiver of default to subsequent defaults, or (iv) reduce the aggregate principal amount of Bonds required for consent to any such amendment, change, modification, or rescission. Whenever the City shall desire to make any amendment or addition to or rescission of this Ordinance requiring consent of the Owners, the City shall cause notice of the amendment, addition, or rescission to be given as described above for a notice of redemption. Whenever at any time within one year after the date of the giving of such notice, the City shall receive an instrument or instruments in writing executed by the Owners of a majority in aggregate principal amount of the Bonds then outstanding affected by any such amendment, addition, or rescission requiring the consent of Owners of Bonds, which instrument or instruments shall refer to the proposed amendment, addition, or rescission described in such notice and shall specifically consent to and approve the adoption thereof in substantially the form of the copy thereof referred to in such notice, thereupon, but not otherwise, the City may adopt such amendment, addition, or rescission in substantially such form, except as herein provided. No Owner may thereafter object to the adoption of such amendment, addition, or rescission, or to any of the provisions thereof, and such amendment, addition, or rescission shall be fully effective for all purposes. Section 19. MISCELLANEOUS. (a) Titles Not Restrictive. The titles assigned to the various sections of this Ordinance are for convenience only and shall not be considered restrictive of the subject matter of any section or of any part of this Ordinance. (b) Inconsistent Provisions. All ordinances, orders, and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed and declared to be inapplicable, and the provisions of this Ordinance shall be and remain controlling as to the matters prescribed herein. (c) Severabilitv. If any word, phrase, clause, paragraph, sentence, part, portion, or provision of this Ordinance or the application thereof to any person or circumstances shall be held to be invalid, the remainder of this Ordinance shall nevertheless be valid and the Council hereby declares that this Ordinance would have been enacted without such invalid word, phrase, clause, paragraph, sentence, part, portion, or provisions. (d) Governine: Law. This Ordinance shall be construed and enforced in accordan<<e with the laws of the State of Texas. (e) Effective Date. This Ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained. PASSED AND APPROVED this June 22, 1998. Isl Alton E. Porter Mayor Pro Tem, City of La Porte, Texas ATTEST: Is! Martha Gillett City Secretary, City of La Porte, Texas 17 e e ~@[jZ)V EXHIBIT A PAYING AGENT/REGlSTRAR AGREEMENT THIS PAYING AGENTIREGISTRAR AGREEMENT entered into as of June I, 1998 (the "Agreement"), by and between the CITY OF LA PORTE, TEXAS (the "Issuer"), and CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, a banking association duly organized and existing under the laws of the United States of America (the "Bank"). RECITALS WHEREAS, the Issuer has duly authorized and provided for the issuance of its "City of La Porte, Texas General Obligation Bonds, Series 1998" (the "Securities"), such Securities to be issued in fully registered form only as to the payment of principal and interest thereon; WHEREAS, the Securities are scheduled to be delivered to the initial purchaser thereof as provided in the "Ordinance" (hereinafter defined); WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on the Securities and with respect to the registration, transfer, and exchange thereof by the registered owners thereof; WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE I. APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities. As Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof, all in accordance with this Agreement and the Ordinance. The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the Ordinance. The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the ~ank the fees and amounts set forth in Schedule A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel). A-I e e ~1YrpJ~ ~~u 11 .. ARTICLE II. DEFINITIONS Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Bank Office" means the designated principal corporate trust office of the Bank as indicated on the signature page hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bank Principal Payment Office" means Dallas, Texas. "Fiscal Year" means the fiscal year of the Issuer, ending September 30. "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Ordinance" means a written request or order signed in the name of the Issuer by the Mayor of the Issuer, the Director of Finance of the Issuer, the City Manager, or the City Secretary of the Issuer, anyone or more of said officials, delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Ordinance" mean the ordinance of the governing body of the Issuer pursuant to which the Securities are issued, certified by the City Secretary or any other officer of the Issuer and delivered to the Bank. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this defmition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Ordinance). "Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such redemption pursuant to the terms of the Ordinance. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfer of the Securities. "Stated Maturity" means the date specified in the Ordinance the principal of a Security is scheduled to be due and payable. Section 2.02. Other Definitions. The terms "Bank," Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. A-2 e e (C' @~W'-' '0 ' . ". ',".,.." .... C'," .0;,;, The term "Paying AgentlRegistrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE III. PAYING AGENT Section 3.01. Duties of Pavin2 A2ent. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the Bank Principal Payment Office. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by computing the amount of interest to be paid each Holder and preparing and sending checks by United States Mail, first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities on the dates specified in the Ordinance. ARTICLE IV. REGISTRAR Section 4.01. Security Re2ister - Transfers and Exchan2es. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Principal Payment Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange, and replacement of the Securities, and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be rea~onably required by the Issuer and subject to such reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges, and replacement of Securities shall "e noted in the Security Register. A copy of the Security Register will be maintained at the offices of the Bank's agent in Houston, Texas. Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument ,of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supportIng documentation it feels necessary to effect a re-registration, transfer, or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder or the assignee of the Holder in not more than three business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying AgentlRegistrar. Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political subdivisions or corporations for which it serves as registrar, or that is maintained for its own securities. A-3 e e (C' (Q)~" v ,,' .' ,'0' ,,'. ,F~':: '.'..; . ,," .' ,.... 0: Section 4.03. Form of Security Ree:ister. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer, and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not 'be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. Unless required by law, the Bank will not release or disclose the contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05. Return of Cancelled Certificates. All Securities surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Bank, shall be promptly cancelled by it and, if surrendered to the Issuer, shall be delivered to the Bank and, ifnot already cancelled, shall be promptly cancelled by the Bank. The Issuer may at any time deliver to the Bank for cancellation any Securities previously authenticated and delivered which the Issuer may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly cancelled by the Bank. All cancelled Securities held by the Bank shall be destroyed, and evidence of such destruction furnished to the Issuer at such reasonable intervals as it determines subject to applicable rules and regulations of the Securities and Exchange Commission. Section 4.06. Mutilated. Destroved. Lost. or Stolen Securities. The Issuer hereby instructs the Bank, subject to the applicable provisions of the Ordinance, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance. In case any Security shall be mutilated, or destroyed, lost, or stolen, the Bank, in its discretion, may execute and deliver a replacement Security of like fonn and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss, or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution, and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost, or stolen. Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.0 I, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.0 I, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. Section 4.08. Redemption of Securities. Securities which are redeemable before their stated maturity shall be redeemable in accordance with Section 3 of the Ordinance and terms in accordance with this Article IV. A-4 e e (C' @~w 1..."1 ..' . '~p> 6. I. " Q,. ',', Section 4.09. Notice of Redemption. Notice of redemption shall be given by the Bank in the name at the expense of the Issuer not less than 30 or. more than 4S days prior to the date of redemption, to each Registered Owner of Securities to be redeemed and otherwise required by the Ordinance. All notices of redemption shall include the CUSIP number and statement as to: (a) the date of redemption; (b) the price of the Securities expressed as a percentage of par amount of the Securities; (c) the principal amount of Securities to be redeemed, and, if less than all outstanding Securities are to be redeemed, the identification (and, in case of partial redemption, the principal amounts) of the Securities to be redeemed; (d) that on the date of redemption the principal of each of the Securities to be redeemed will become due and payable and that the interest thereon shall cease to accrue from and after said date; and (e) that the Securities to be redeemed are to be surrendered for payment of the price stated in the notice of redemption at the designated principal payment office of the Bank, and the address of such office. The Bank shall, at the expense of the Issuer, provide notice to designated securities depositories and infonnation services based upon the then current guidelines of the Securities and Exchange Commission relating to redemptions and refundings of municipal bonds, including the Securities. The Bank, at the expense of the Issuer, shall also provide notice to any other addressees as the Issuer shall designate in writing. ARTICLE V. THE BANK Section 5.01. Duties of Bank. The Bank undertakes to perfonn the duties set forth herein and agrees to use reasonable care in the perfonnance thereof. Section 5.02. Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions' expressed therein, on certificates or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (c) No provisions 'of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any fmancialliability for perfonnance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. A-5 e e ~,," '(0):.:' ,;fPJD::'V':' , _ I .". - . . ," ',.:. ~ ," ( e) The Bank may consult with counsel, and the written advice of such counselor any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. Section 5~04. Mav Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying AgentlRegistrar, or any other agent. Section 5.05. Monev Held bv Bank. (a) Money held by the Bank hereunder shall be held for the benefit of the Registered Owners of the Securities. (b) The Bank shall be under no obligation to pay interest on any money received by it hereunder. (c) Except to the extent provided otherwise in the Ordinance, any money deposited with the Bank for the payment of the principal on, redemption premium, if any, or interest on any security and remaining unclaimed for three years after the dates such amounts have become due and payable shall be reported and disposed of by the Bank in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent that such provisions are applicable to such amounts. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demands, or controversy over its person as well as funds on deposit, in either the District Court of Harris County, Texas, or the United States Federal District Court for the Southern District of Texas, waive personal service of any process, and agree that service of process by certified or registered mail, return receipt requested, to the address set forth in Section 6.03 hereof shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to tile a Bill of Interpleader in any court of competent jurisdiction, at the expense of the Issuer, to determine the rights of any persons claiming any interest herein. Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it haimless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07. Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to tile a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. A-6 e e C,:..," 0':" "".'p:!ri'V' .: :':;' '., :'r.;~~..1 "', I' :.' ."' r," . \" I .:. ,; Section 5.08. Depository Trust Company Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements," effective August I, 1987, which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE VI. MISCELLANEOUS ,PROVISIONS Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. Section 6.02. Assie:nment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issiler or the Bank, respectively, at the addresses shown on the signature page of this Agreement. Section 6.04. Effect of Headine:s. The Article and Section headings herein are for convenience only and shall not affect the construction hereof. Section 6.05. Successors and Assie:ns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severabilitv: In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 6.07. Benefits of Ae:reement. Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their successors bereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. Section 6.08. Entire Ae:reement. This Agreement and the Ordinance constitute the entire agreement between the parties hereto relative to the Bank acting as Paying AgentlRegistrar and if any conflict exists between this Agreement and the Ordinance, the Ordinance shall govern. Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an originl!1 and all of which shall constitute one and the same Agreement. Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon 60 days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying AgentlRegistrar has been appointed by the Issuer and such appointment accepted and (b) notice has been given to the Holders of the Securities of the appointment of a successor Paying AgentlRegistrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay, or otherwise adversely affect the payment of the Securities. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereot), together with other pertinent books and records relating to the Securities, to the successor Paying AgentlRegistrar designated and appointed by the Issuer. A-7 e e ~(Q)~V The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11. Governinl! Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year flJ'St above written. CHASE BANK OF TEXAS, NATIONAL ASSOCIATION Attest: By By Title Title Address: 600 Travis, Suite II SO Houston, Texas 77002 (BANK SEAL) Attest: CITY OF LA PORTE, TEXAS By By': City Secretary Mayor Address: 604 West Fairmont La Porte, Texas 77571 (ISSUER SEAL) , EXECUTION PAGE FOR PAYING AGENTIREGISTRAR AGREEMENT e e (G@[F)W SCHEDULE A Paying AgentlRegistrar Fee Schedule (To be furnished by the Bank) e e CC(Q)~W EXHffiIT B DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 16 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified and included in the Appendix or under the headings of the Official Statement referred to below: I. The audited financial statements of the City for the most recently concluded fiscal year. 2. The information included in the Official Statement under the headings "FINANCIAL INFORMATION", "COMPUTATION OF SELF-SUPPORTING DEBT", "TAX COLLECTION RECORD", "TAX COLLECTION DATA", "TAX RATE DISTRIBUTION", "DEBT SERVICE FUND MANAGEMENT INDEX", "TAX ADEQUACY", "CITY SALES TAX", "GENERAL OBLIGATION BONDS AUTHORIZED BUT UNISSUEDj" "ESTIMATED DIRECT & OVERLAPPING DEBT STATEMENT", "TWENTY MAJOR TAXPAYERS", "TEN MAJOR EMPLOYERS", "GENERAL OBLIGATION BONDS", "PRINCIPAL REPAYMENT SCHEDULE", "ESTIMATED DEBT SERVICE REQUIREMENT SCHEDULE", and "GENERAL FUND REVENUES, EXPENDITURES, AND BALANCES - FIVE YEAR HISTORY". Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in paragraph I above, as such principles may be changed from time to time to comply with state law or regulation. B-1 e, e e e ~fR\rc3J~ AKIN, GUMP, STRAUSS, HAUER & FELD, L.L.P. ~~~ 'ri' ATTORNEYS AT LAW AUSTIN BRUSSELS DALLAS HOUSTON LONDON LOS ANGELES MOSCOW NEW YORK PHILADELPHIA WASHINGTON, D.C. A REGISTEREO LIMITEO LIABILITY PARTNERSHIP INCLUOING PROFESSIONAL CORPORATIONS 1500 NATIONSBANK PLAZA 300 CONVENT STREET S~N ANTONIO, TEXAS 78205 (210l 270-0800 FAX (210) 224-2035 RECEIVED SEP 2 4 1993 I I . .' September 22, 1998 CITY SECRETARY'S OFFICE Ms. Martha A. Gillett City Secretary, City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Re: City of La Porte, Texas General Obligation Refunding Bonds, Series 1998 City of La Porte, TexaS Waterworks and Sewer System Revenue Refunding Bonds, Series 1998 Dear Martha: Enclosed for the City's records are complete copies of the Bond Ordinances and Resolutions. It was a pleasure working with you to bring the transactions to a successful close, and we sincerely appreciate the opportunity to be of service to the City. Very truly yours, 1QOJWJ DORIS M. ALDERMAN Assistant to M. Paul Martin DMAlsj Enclosures 11_ ._..... ..._ ___ .... .u.... ............ ..--,. - ..... '''-''I e e (G(Q)lPY : . , . . : C!ll'l1PICATB POllllESClWl'IDH We, die 1IIIdenigacd. May<< aDd CJ1y S&-aat)' oUla CIl7 ot1.& Pane" Teal (1IIe .alJ'"). hereby ~ .. thIIawI: 1. 'DIe Cf&)' CoaDaiI 01 tho City (tile "CaaDdl' CIODWIIal ill mpJlr __ apIII tD 1111 publiI:. 011 _ Play 1 B -" 1". . tba aacdlq pIIIICe cIaIpmd iIl..1KIdca (1IID "MeetfDa").1IId _ mn wa caIIal oftllememlJal, mwJtNClDllDL. MaJau.~ _die fDIIowiagCilJCo-i'-~Guy 8adulrIImd. Chuck ~~, !:JGlnrd Ebaw. DeadI GIy. Cbdie YOIIIIII 1cny C1Bb. Bob MtLau&l""', IIId Aba PcIftIr. AD IDCIIlbcrs of tile CaaIu:il WIll pmsear. III:IDC 1'Ir. l'IcLal mh 1 ; n , . C04ia~ a qaanma. WhaM1pca.......alh8rbusllle:tr. tile ftJIlawiDg wub-Watm. McctfDa;awritlareso~eadIIal tutSOLUIIOM At1TBQlllZING PUBLICATION OF NOT.ICB OP IN'J'EN1'1ON TO ISSUE lU!VENUB BOJmS ' (eM wKaobidma" was dDly IlUraducedtar1lre COIIIidcndoDcd'1IIc CGaDcU ad ftIId III ~ ]t...dIIn duly IDIIftld ad ~dtd_ ilia 1taalldiGn be fIDalIypauecl aad adupttd; lIDddl:rlile ~ mab IIHIdazI. amyfDcwilb It _ 8dopUaD oldie 1t_~ prmP1ecl1llll caaiccI by tile foDoIrIiDs wta: YES: B NOBS: O. ABSI'ENTIONS: 0 2. A 1rae, filii, and ccmcI GOllY af1bl RlsuluDoa adopmd 1l1b Mectiq is attached to aad follcnrs tiI Catificate;ttlls JI_fnfWo IIu beaadul)' l'8ClOftfedla mlCoallcD'smillatla otlb ~ the abcMt md fvreFias p8(a@.f8Ph is & 1nIe, ftdI, and CCIIIlCI excapt fiam the CGaDcil'slllbmtes of 1111 Me.aai t-~I to the adopdua of., Retoludaa; 1!u: pmoua oamecl ill tblt ahaYa IIIId tbreguiD; ~ ani dilly c:hosa. qaalUied, md acdDg of!icas md JIU:IIIbeq of tho Comu:ilas iadiQied theteia; aacb ofdle cdIk:c:lIlIDd memben oflbe CoIlDCll WIIS dilly mcI sufficillll1y IlCJtifIccI omdally aDCl p--lly,lD advam:e. oftbe 1ime, place, aad parpate of tbe M~& ad 1Iud die ResalaCiGD wauld b. iDtroducecf ad considered:fOr adapdaD a 1Iu: Mcctiq, and eIdL of mdl afIiccn 8IId member! CODSIIItId, fa IdwIIce, tit thlWdiDS af'1hD !.fectiq k _ parposr. md1lu: Mcctiac wu opeD to ilia public:. and pabUo:aodce ofJba1fme, p_ aad papaIC 01 the M=tiq wU siva. an. requizI:d by CIapta' ~]. TCZIIS GovenmIaIt Code. :. 3. Martba GilId is tile dilly IppoiDD:d ad actiq CIIy SecreaIIy ot 1111 0)'. SIGNED AND SEALED this _ ~d t0Q 0 t:: :fl, II i I~ - I I ~de JidIdl CUy CUy of La PoIUI, Texas ~~~ , oiLa Porte, Te.xu (CJTY SEAL) e e CG(Q)~W RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE REVENUE BONDS WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the "City"), finds that the construction of improvements to the City's waterworks and sewer system and the payment of contractual obligations for professional services in connection therewith (including, but not limited to, financial advisory, legal, and engineering) would be beneficial to the inhabitants of the City and such property is needed to perform essential governmental functions, and the City Council has determined that revenue bonds (the "Bonds") should be issued pursuant to the applicable laws of the State of Texas, including Articles 1111 through 1118, Vernon's Texas Civil Statutes, for such purposes; WHEREAS, prior to the issuance of the Bonds, the City Council is required to publish notice of its intention to issue the Bonds in a newspaper of general circulation in the City, the notice stating (i) the time and place the City Council tentatively proposes to pass the ordinance authorizing the issuance of the Bonds, (ii) the maximum amount of Bonds proposed to be issued, (iii) the purposes for which the Bonds are to be issued, and (iv) the manner in which the City Council proposes to pay the Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, THAT: ' SECTION 1. Attached hereto and marked "Exhibit A" is a form of notice, the form and substance of which are hereby adopted and approved. SECTION 2. The Mayor or the City Secretary shall cause the notice to be published, in substantially the form attached hereto, in a newspaper, as defined in Section 2051.044, Texas Government Code, of general circulation in the City for two consecutive weeks, the date of first publication to be at least 14 days prior to the date tentatively set for the ordinance authorizing the issuance of the Bonds. SECTION 3. The Mayor and the City Secretary are hereby authorized and directed to execute the Certificate to which this Resolution is ~ttached on behalf of the City Council and to do any of all things proper and n~cessary to carry out the intent thereof. . . . . e EXHIBIT A ~(Q)~W NOTICE OF INTENTION TO ISSUE REVENUE BONDS NOTICE is hereby given that it is the intention of the City Council (the "City Council") of the City of La Porte, Texas (the "City") to adopt an Ordinance providing for the issuance of interest- bearing revenue bonds of the City presently contemplated to be designated and known as the "CITY OF LA PORTE, TEXAS WATERWORKS AND SEWER SYSTEM REVENUE BONDS, SERIES 1998" (the "Bonds") for the purpose of construction of improvements to the City's waterworks and sewer system and the payment of contractual obligations for professional services in connection therewith (including, but not limited to, financial advisory, legal, and engineering). The City Council tentatively proposes to authorize the issuance of the Bonds at its regular meeting place in the City Hall, La Porte, Texas, at a Regular Meeting of the Council to be commenced at 6:00 p.m., on the 22nd day of June, 1998 in an amount expected not to exceed $1,250,000. The City Council proposes to provide for payment of the Bonds from a pledge of the net revenues of the City's waterworks and sewer system. Isl Nonnan L. Malone Mayor, City of La Porte, Texas (SEAL) . e " REOt&. FOR CITY COUNCn.. AGENDA 11M Agenda Date Requested: June 22. 1998 Requested By: s. Gill~ep.rtm...t: Public Works _ Report _ Resolution XX Ordinance Exhibits: Ordinance No. 98-2255 Bid Tabulation SUMMARY & RECOMMENDATION Sealed bids were received on June 15, 1998 for the Rehabilitation of Sanitary Sewer System using Sliplining and Remove and Replace Techniques. This contract anticipates a base bid amount for identified work in the former Bayshore MUD area, and a one year contract for additional rehabilitation of a variety of sewer sizes, depths and situations. The additional work will be identified in the coming year, with work orders to be issued as needed. Bids were sent to eight (8) contractors, with three (3) returning bids. Low bid on the base amount was submitted by Horseshoe Construction, Inc. in the amount of $119,812.00. This Contractor holds the current contract for rehabilitation. Funds are available in the Sewer Rehabilitation Fund (018). The base bid work will be performed under the current budget. It is anticipated that the additional work, when identified, will be available in the upcoming budget. Action Required by Council: Approve Ordinance No. 98-2255 authorizing the City Manager to execute an agreement with Horseshoe Construction Inc. in the base bid amount of $119,812.00 and an annual contract to provide trenchless sewer rehabilitation and remove and replace work at the unit prices bid. Availability of Funds: General Fund WaterlWastewater _ Capital Improvement_ General Revenue Sharing X Other - Sewer Rehabilitation Fund Account Number: 018 Funds Available: XXYES NO Aooroved for City Council Ae:enda ~~ T \~ lD-lca-'le, Robert T. Herrera City Manager Date BID TA'LATION-TRENCHLESS SEWER RIAB-SLlPLlNE JUNE 15,1998 DESCRIPTION QTY HORSESHOE ALLCO PM SLlPLlNE 6" 0' - 10'DEEP If 1080 19,332 27,000 29,160 SLlPLlNE a" 0' -10' DEEP If 3120 56,160 84,240 93,600 NEW MANHOLE vf 42 8,820 7,770 11,550 OBSTRUCTION REMOVAL ea 20 1,000 9,000 14,000 RECONNECTION OF SERVICE LINE ea 115 34,500 63,250 63,250 TOTAL BASE BID 119,812 191,260 221,560 e ~@(P)" ORDINANCE NO. 98-2255 AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY Oll' LA PORTE . AND HORSESHOE CONSTRUCTION, INC. , TO PROVIDE TRENCHLESS SEWER REHABILITATION; APPROPRIATING $119,812.00, TO ll'UND SAID CONTRACT, PLUS AN ADDITIONAL ONE YEAR CONTRACT WITH UNIT PRICES TO BE AUTHORIZED AS NEEDED; MAKING VARIOUS ll'IHDINGS AND PROVISIONS RELATING TO THE SUBJECT; ll'INDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN Ell'FECTIVE DATE HEREOll'. 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. City Council appropriates the sum of $119,812.00 from the Sewer Rehabilitation Fund No. 018 to fund said contract for the base bid amount, plus additional work on a one year basis at unit prices to be authorized as needed. 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 pub,lic at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. e ~CQ)~)V ORDINANCE NO. 98- 2255 PAGE 2 section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 22nd day of June, 1998. By: ~i~ Norman L. Malone, Mayor ATTEST: ~. J41JfJ{) a tha A. Gillett,' City Secretary Knox W. Askl.ns, City Attorney e ~ e .:..'../ , " ~ REOlsT FOR CITY COUNCIL A&DA ITEM Agenda Date Requested; June 22, 1998 Requested By: Doug Kneupper Department: Planning xxx Report Resolution xxx Ordinance Exhibits: Ordinance Bid Tabulation Bidder List Summary & Recommendation The City has been under contract with Rimkus Consulting Group (RCG) beginning in late April 1998 to assist Staff and provide professional engineering services regarding the Wave Pool. Staff and RCG have developed a plan to provide a long term repair to the water circulation piping. Recognizing the vital importance of having the Wave Pool in operation as soon as possible, Staff and the City Attorney reviewed the applicable state statutes with regard to bidding and construction contracts. The statutes allow for some flexibility with the fonnal advertising and bid opening process when situations like this occur. Staff and RCG finalized a pool repair contract and invited a short list of contractors to attend a pre-bid meeting on Friday, May 29, 1998. Six contractors attended the pre-bid meeting. During the pre-bid meeting the overall scope of the repair project was discussed along with the need to complete the work in a very short time frame. Attendees at the pre-bid were asked to return bids to the City by the following Friday, June 5, 1998. On Friday, June 5, 1998 the three bids received were analyzed and based on time required, bid price and other factors it as decided to award the work to Sunbelt Pool Supply. A letter authorizing Sunbelt Pool Supply to begin work was sent out on Tuesday, June 9, 1998. The 20 world~g days was highlighted along with an incentive to complete the work early. The incentive is an additional $1,200 per day that Sunbelt completes the work early. Action Required by Council: At this time staff is requesting Council ratify the construction contract with Sun belt Pool Supply and authorize payment to Sunbelt Pool Supply, upon completion, in the amount of $52,502.24. Also authorize payment of $1,200 per day for each day that the project is completed early. A vailabiIity of Funds: General Fund XX Capital Improvement Other Water /W astewater General Revenue Sharing Account Number: 015-9892-730-11-00 Funds Available: XX Yes No e ~@[f2JVe ORDINANCE NO. 98- 2256 AN ORDINANCE RATIFYING, CONFIDING AND APPROVING AN AGREEHEJl'J.' BETWEEN THE CITY OF LA PORTE AND smmELT POOL SUPPLY, DATED JUIlE 9, 1998, FOR REPAIRS '1'0 THE WAVE POOL; APPROPRIATING $52,502.24, '1'0 FUND SAID CONTRACT, PLUS $1,200.00 PER DAY FOR EARLY COMPLETION; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING '1'0 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 ratifies, confirms and approves 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 ali 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. City Council appropriates the sum of $52,502.24 to fund said contract, plus $1,200.00 per day for early completion. 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 ci ty for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. e ORDINANCE NO. 98- 2256 It ~CQ)[F>W PAGE 2 section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 22nd day of June, 1998. ATTEST: By: CITY OF LA PORTE Ctit...-[y~ Norman L. Malone, Mayor e FROM THE DESK OF MARTHA GlUETr CITY SECRETARY CITY OF LA PORTE, TEXAS June 22, 1998 ~(Q)~'t' Mr. Kneupper requested these items be placed with number 10 in your agenda packet. Thanks, Martha ~~ e (rt@~w REPAIRS TO THE LITTLE CEDDAR BAYOU PARK WAVE POOL PRE - BID CONFERENCE @ WAVE POOL SITE MAY 29,1998 1:00 P.M. ATTENDEES NAME COMPANY TELEPHONE FAX NO. NO. Doug Kneupper City of La Porte Joe Koch Deer Park Construction 281-479-0014 479-7472 Jamie Whitfill Quality Pools 713-941-2154 713-947 -6849 Steve Davis Progressive Chemical 281-443-7665 281-443-1524 Doug Christy Sunbelt Pool Supply 281-469-0090 281-469-4884 Russ Lundemo RL Utilities 281-479-6567 281-476-9996 Mark Follis Follis Construction 281-471-6881 281- 471-6038 Frank Urteaga Rimkus Consulting 713-621-3550 713-623-4357 Ken Smith Rimkus Consulting Stephen Barr City of La Porte e e ~@[j2)1f Bid Tabulation Repairs to Little Cedar Bayou Park Wave Pool Bidder Calendar Plumbing Pool Concrete Total Days Deer Park 16 inclusive inclusive inclusive $68,855.40 Construction Quality Pools 14 (verbal) 43,765.00 10,200.00 24.970.00 $78,935.00 Sunbelt Pool 20 (verbal) 21,792.24 6,355.00 24,354.00 $52,502.24 Prepared By: Doug Kneupper 6/5/98 3:05 PM e e e CONSENT AGENDA e e e A .Q.UESI..EOR.CITY..c.mlliCIL_A.GE:hID..tJM Agenda Date Requested: Requested By: lune_22,J9~8 Alex-Osmond Department: Adminis.tration xx Report Resolution Ordinance Exhibits: I) 2) 3) Sealed Bid #0739 Bid Tabulation Bidders List SllM.MAR.Y..&..RE.c.oMME:hIDATI<ThI Sealed bid #0739 for chemical and fertilizers to be used at the City of La Porte's Golf Course and Parks Maintenance Department were opened and read on June 1, 1998. Bid requests were mailed to nine (9) vendors with six (6) returning bids. Bids will be awarded in each section to the vendor meeting all required specifications. Section Vendor Total 1. Insecticides BWI $2,469.40 2. Herbicides BWI $9,414.60 3. Fungicides Turf Industries $10,163.02 4. Greens Grade Fertilizer Gold Kist $2,880.00 5. Fairway Fertilizer Gold Kist $9,904.00 6. Other Products BWI $12,360.60 TOTAL $47,191.62 This is a 5% increase from last year's price. Sufficient funds are available in the Golf Course Maintenance and Parks Maintenance budgets. Golf Course Maintenance will provide 75% of the funding and Parks Maintenance will provide 25%. Golf Course budget for chemical and fertilizers: Parks Maintenance budget: Total $58,000.00 $25,000.00 $83,000.00 Staff recommends awarding bids in Sections 1,2 and 6 to BWl; Section 3 to Turf Industries; and Sections 4and 5 to Gold Kist, low bidders meeting all specifications. Action Required b)' Council: A ward bids as recommended by Staff. Availability of Funds: xx General Fund Capital Improvement Other Water/Wastewater General Revenue Sharing xx Account Number: ---Yario.us_ Funds Available: -XX- ApprQY..e.clfoLCit}!...CQuncil G~ \. ~~ Robert T. Herrera City Manager t,-\l-1'b Date e . CITY OF LA PORTE INTEROFFICE MEMORANDUM JUNE 9, 1998 TO: FROM: DENNIS HLAVATY, GOLF COURSE MAINTENANCE SUPERINTENDENT SUSAN KELLEY, PURCHASING AGENT.,J/< SUBJECT: SEALED BID #0739 - CHEMICALS AND FERTILIZERS Advertised, sealed bids #0739 - chemicals and fertilizers were opened and read on June 1, 1998. Bid requests were mailed to nine (9) vendors with six (6) returning bids. Copies of the bids are attached for your review. 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. Attachment: Bid Copies Bid Tabulation Bidder's List xc: Stephen Barr, Director of Parks & Recreation BID TABULATION - CHEMICAL & FERTILIZER $11.23 $9.99 NO BID $10.25 $47.50 $50.68 NO BID NO BID $7.58 $7.46 $8.77 NO BID $6.59 $6.44 $6.86 NO BID fnmI~l$.J.~f~gltf,iJ.l[H~'J.tllf:f$.jlt[t~l~I!lm~Emm~JI"!n 30 $10.16 4 $50.1'1 ;;0 $7,55 $7.24 250 $6.43 $6.56 &tllili tKl$&ll~'~I~nmMI~~tillm $10.06 $45.65 e, $16.50 $20.50 $48.57 $12.50 $38.50 NO BID $130.00 NO BID NO BID NO BID t!OOI~I<ttll.J.ll.i $95.00 NO BID NO BIDe $240.00 $240.00 NO BID ffmtOll'11f:QQl NO BID NO BID $53.14 NO BID NO BID NO BID rrnl@lfilliMIJ.' $96.51 $107.60 $96.88 $280.06 $269.00 $270.40 $63.98 $67.85 $59.50 $260.22 $279.50 $258.14 $483.88 $255.88 $454.50 $4.37 $4.75 $5.40 JHIUI~IIJiAitl~111il.l'-ig'H1MiI19~,g~tlal@ 10 10 10 10 4 400 4.46 Mf.tMl@IldII',tti~M& $97.56 $281.55 $59.51 $260.22 $478.75 SECTION I . 1) ORTHO 0 2) TURCAM I 3) DYLOX (L 4) AWARD F ~~~fl{i~~~11ilf:illl~*~ SECTION II - 1) BUENO SIX M.S.M.A. (GALS) 2) P .B.I. GORDON TRIMEC CLASSIC (GALS) 3) ROUND-UP (GALS) 4) PRINCEP LIQUID (GALS) 5) SUFLAN (GALS) 6) ILLOXAN (GALS) 7) RUBIGAN (GALS) 8) BARRICADE 65 WG (LBS) 9) BUCTRIL (GALS) 10) MANAGE (1.3 OZ CO NT) :m#;h"%iW.rnt&}~~#*?::W%WWlr~:tWW~W~Wt.W$E~r~~ffi~ii1t.~YK:w,: ..._.......~.................................._...:::::::..x...."J'.N''$... ...<<<<..*:.m:...*.<<<<....::o.(....^.M::J~~~;.".m*.:!:-~..;~..... SECTION III - FUNGICIDES 1) CHIPCO 26019 FLOWABLE (GALS) 2) BANOL (GALS) 3) DACONIL WEATHER STICK (GALS) 4} BANNER MAXX (GALS) 5) SUBDUE MAXX (GALS) 6) PROTECT W.S.P. (LBS) M*$tlWgfHltH1Wglmt]Miliwl.itllir@KmM@m@~.lllgMiJUIQT.g (LBS) (LBS) tlfi&fliElil:ilfii9bl.N.f:I1Il91'.Al:. 30 $14.46 $15.60 $40.95 $14.88 "'$18.90 15 $23.50 $22.59 $23.40 $22.40 $66.00 50 $47.58 $51.68 $53.95 $48.58 $47.56 15 $15.22 $15.06 $16.47 $14.60 $16.26 10 $71.74 $70.22 $81.33 $70.40 $77.66 4 $105.44 $109.70 $105.00 $101.80 NO BID 8 $248,13 $250.92 $267.15 $248.00 NO BID 20 $37.90 $38.30 $37.50 $37.40 NO BID 10 $61.88 $105.38 $119.70 $105.04 NO BID 20 $76.00 $73.40 $79.50 $74.90 $88.25 iiHfJlWlM$f.~"'itI~R9.MU1$lqmll~J'$.$j~.*'i~.nlliiJltl't$<9iilif!lm$.lilt~iJ.ljUI NO BID NO BID NO BID mmtEfWJ.N,Q,IIJ~ ,NO BID NO BID NO BID *ml.fmmflQI~JQ11 $12.00 $12.00 $12.00 tlml~~llgilg~: $23.16 $19.20 $22.43 $18.95 $18.82 $18.36 f:!:Ef.J.~ji~~!,$.li~ItW:mf.j1<<~g~#.!ti: NO BID NO BID NO BID NO BID t@llif&'WN,IJI"m NO BID NO BID NO BID NO BID !ililtE]mB,I~glm:i $327.77 $322.00 $299.50 $290.00 $242.35 $238.00 $255.00 $264.00 mr.I:il!L$.11:JI.@miIl!ltJ~I~i'l $325,00 $334.57 $330.00 $293.27 $232.00 $233.00 $256.00 $265.00 fJ~1!JP.~l1.g'qil]IiIUU1!tt:19iiii - $22.95 $32.00 $10.73 $6.00 $10.25 $12.00 $19.85 $21.00 $13.50 $10.00 $30.23 $30.00 $379.00 $375.00 $264.00 NO BID $134.65 $129.08 NO BID NO BID mtI1g:4;'l'Um~ ;%111W.~t'-li'lf. ~iM;M'$.lfilgl'i rWBifl;,-mArE "~$51'i1:~410~": ~". :~;Q8~~3,~:' .".:i.::$9;9~7i;20:~ ~;- ?$~:~f~~~'~~O~ NO BID NO BID NO BID $21.46 $10.26 NO BID NO BID NO BID $72.00 $9.60 $10.70 $21.12 $8.25 $33.20 $328.30 NO BID SECTIO V - GREENS GRADE FERTILIZER 1) ANDERSONS 18-6-15 w/50% NUTRALENE (50 LB. BAGS) 2) PRO GREEN 18-0-18 (50, LB. BAGS) 3) ANDERSONS 14-28-10 w/50 % NUTRALENE (50 LB BAGS ffi%fDi@l.{W$,M5Mf.t1.WWlW#lfJ.lilWmlllilm@l$j$.~1U~fjM~lffiftf.#.JJ.! SECTION V - FAIRWAY FERTILIZERS 1) ANDERSONS 14-0-24 w/50% NUTRALENE (TONS) 2) BONUS CROP 18-6-12w/50% S.C.U. (TONS) 3) BONUS CROP 12-24-12 WATER SOLUBLE(TONS) 4) AMERICAN PLANT FOOD 20-5-10 w/50% S.C.U. (TONS) MntmmtffiIfHmMllilW1WMMW;mnill{1mruillMiHW$.J.tQjngNA~!lgr.Alj SECTION VI - OTHER PRODUCTS 1) ALLIANCE ROOT ENHANCER (GALS) 20 $33.28 $32.29 2) RUFFIN (GALS) 20 $6.35 $5.52 3) NEUTRA CLEAN TANK CLEANER (GALS) 10 $9.95 $4.25 4) BIG FOOT SPRAY INDICATOR (GALS) 20 $20.60 $20.00 5) ACTIVATE PLUS STICKERlSPREADER(GALS) 10 $7.00 $19.05 6) AQUA SHADE LAKE DYE (GALS) 100 $31.67 $31.95 7) PRIMO LIQUID (GALS) 4 $339.00 $341.95 8) CLIN-O-L1TE TOP DRESSING SOIL CONDITIONER (TON) 20 $253.00 $330.00 9) NEMACUR 10% (BAGS) 10 $140.35 $135.50 i:MH1HmmMWf11MlBW1Mltit.MiWMtThWHHl3iQTJ<<tiMl,jiQr.:a m@Si g41,:gl~~~mQI@I!..gli.~!)lH ='F~~::{,,:- ::.::..:.: :-::' ~,<::-::,~ : 2:;~~;';-'? --;;::;;:7- ~- ;~;~~..::~~~I?::rQ!AI:; :::::'':=.f:...~'~i~~t~~0~~$.$~.~:1~.:4'1.~ $17.15 $17.34 $16.10 '$~;947 .20 80 80 80 :~ili.] 16 4 4 10 :~:~~:~~i~:~~:! :::::~::::::."'::::::::' 'e e e BIDDER'S LIST SEALED BID #0739 - CHEMICALS & FERTILIZERS ARROW-MAGNOLIA 2646 RODNEY LANE DALLAS,TX 75229 ESTES INCORPORATED 1075 W. SAM HOUSTON PKWY, STE 212 HOUSTON, TX 77043 NITRO PHOS FERTILIZERS 704 COLLINS HOUSTON, TX 77023 TURF INDUSTRIES 5097 ASHLEY COURT HOUSTON, TX 77041 WILBUR-ELLIS P.O. BOX 454 EAGLE LAKE, TX 77434 CHAMBER OF COMMERCE PO BOX 996 LA PORTE TX 77572-0996 BWI- COMPANIES INC. 1229 N POST OAK HOUSTON, TX 77055 GOLD KIST INC. 9914 ARROWGRASS DR. HOUSTON, TX 77064 SOUTHWEST FERTILIZERS 5828 BISSONNETT HOUSTON, TX 77081 VAN WATERS & ROGERS P.O. BOX 4579 HOUSTON, TX 77210 BA YSHORE SUN PUBLISH DATES: MAY 17,1998 MAY 25,1998 e e ,.:!, :;. B .OUEST FOR CITY COUNCIL AGENDA rrIf . Agenda Date Requested: June 22 1998 Requested By: Carol Buttl~rtment: Administration XXX, Report _ Resolution Ordinance Exhibits: 1. Bid Recap of Bid #0741- City BaD Carpet 2. Bid Tabulation 3. Bidder's Ust . SUMMARY & RECOMMENDATION To continue the program to upgrade City Hall, the Administration Department budgeted funds to replace the facility's carpet during the current fiscal year. Advertised sealed bids ##0741 - City ilall Carpet were opened and read on Monday, June 8, 1998. Bid requeshl were mailed to eleven (11) vendors with the following three (3) returnina bid'-: 1) Carpet Plus, 2) AthertoD Contracting, 3) Barrett Carpets. Of the vendors responding, Barrett Carpets bid materials only. Carpet Plus, a local vendor, was low bid meeting specifications at $26,131;036 for materials and labor including cove base. This cost does not include the Engineerin&lDrafting location or Council Chambers, which were bid 81 options due to the anticipated cost of this project. Council h81 the option to include the Engineerin&lDrafting area at a cost 0($1,364.15 and Council Chambers at a cost of55,287.28 for a total cost of 532,781.47 for this project. The previous carpet replacement at the end of 1988, did not include the Engineering/Drafting area due to the type of equipment and associated chemicals located in this area, which would have made carpet impractical. Over the last few years this equipment has been replaced. The carpet in Council Chamber. W81 replaced at that time. The vendor would be prepared to begin installation in approximately fourteen (14) days from notification of approval. The vendor was provided a deadline for installation, which would be scheduled in phases similar to the previous carpet replacement project. Staff recommends approval of the total bid package and award of the bid to Carpet Plus. Approved budgeted funds of $26,000 are available from account 1#001-6060-510-8002. Should Council approve both options, funds are available in General Fund Contingency, account #001-6146-515-9050 for the additional $6,782.47. Action Required by Council: Approve and award City HaD Carpet Bid or532,782.47 to Carpet Plus. Availabili.,. of Funds: .xxx.. General Fund_ Water/Wastewater _ Capital Improvement_ General Revenue Sharing XXX Otller Account Number: 001-6060-510-8002 Funds Available: ..xxx.... YES _ NO 001-6146-515-9050 Annroved for City Council Aeenda G?~ T. ~ c..-lg-C1Q Robert T. Herrera City Manager Date - . e - CITY OF LA PORTE INTEROFFICE MEMORANDUM JUNE 9,1998 FROM: CAROL BUTTLER, SECRETARY TO CITY MANAGER SUSAN KELLEY, PURCHASING AGEN-W~ SEALED BID #0741 - CITY HALL CARPET TO: SUBJ: Advertised, sealed bids #0741 - City Hall Carpet were opened and read on June 8, 1998. Bid requests were mailed to eleven (11) vendors with three (3) returning bids. Copies of the bid are attached for your review. 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. Attachment: Bid Copies Bid Tabulation Bidder's List e e BID TABULA TION - CITY HALL CARPET AIHt:KIUN I DESCRIPTION QTY CARPET PLUS CONTRACTING CARPETS .. ' , 1. Material & Labor, including cove base 1294 $20.194 $21.000 $8.990 City Hall, less Eng & Council Chambers TOTAL $26,131.036 $27,174.000 $11,63,3.06 OPTIONS 1. Engineering 68 $20.061 $21.000 $8.990 Sub-Total $1,364.15 $1,428.00 $611.32 2. Council Chambers 290 $18.232 $21.000 $8.990 Sub-Total $5,287.28 $6,090.00 $2,607.10 Exceptions to Bid Bid Carpet Only .., '. .. e . , BIDDER'S LIST SEALED BID #0741 - CITY HALL CARPET A & B CARPET 10416 SPENCER HWY LA PORTE TX 77571 ATHERTON CONTRACTING PO BOX 644 DEER PARK TX 77536 BARRETT CARPETS ATTN CHUCK HEILMAN FAX BID TO : BOATMAN CARPET ONE 12700 1-10 EAST HOUSTON TX 77015 BUODY'S CARPETMAX 16800 TEXAS AVE WEBSTER TX 77598 CARPET PLUS 600 HWY 146 N LA PORTE TX 77571 MEDRANO'S SUPERIOR TILE & MARBLE 1009 CENTER STREET DEER PARK TX 77536 ROYALE CARPET. 1238 CENTER STREET DEER PARK TX 77536 STYLISH CARPET 651A FM 270 LEAGUE CITY TX 77573 UNITED COASTAL FLOORS PO BOX 8130 PASADENA TX 77508 J & J CARPET PO BOX 1287 DALTON GA 30722-1287 CHAMBER OF COMMERCE PO BOX 996 LA PORTE TX 77572-0996 BA YSHORE SUN - PUBLISH DATES: OCTOBER 19, 1997 OCTOBER 26, 1997 . e c e e REOUEST FOR CITY COUNCn.. AGENDA ITEM Agenda Date Requested June It. 998 Requested By: Bobby L. Powelt!; epartment: Police X Report _Resolution _ Ordinance Exhibits: Sealed Bid #0740 - Police Cars SUMMARY & RECOMMENDATION I am recommending we accept the bid for two Patrol Cars from Philpott Ford in the amount of $ 21,595.00 each as per bid packet enclosed. I will assign these new vehicles to the Officers c~ntracted by the LPISD high school for the new school year. Action Required by Council: Accept the Bid as presented. Availability of Funds: -K- General Fund_ WaterlWastewater _ Capital Improvement_ General Revenue Sharing Other Account Number: 00152535218050 Funds Available: 1L YES NO Approved for City Council A2enda ~ \: ~ l:.-,g--<1~ Robert T. Herrera Date City Manager e e CITY OF LA PORTE INTEROFFICE MEMORANDUM JUNE 8, 1998 TO: CHIEF BOBBY POWELL, POLICE CHIEF SUSAN KELLEY, PURCHASING AGENT )~ SEALED BID #0740 - POLICE CARS FROM: SUBJ: Advertised, sealed bids #0740 - Patrol Cars were opened and read on June 1,1998. Bid requests were mailed to fourteen (14) vendors with one (1) returning a bid and one (1) no- bid. Copies of the bids are attached for y~ur_r~vieY'!' 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. Attachment: Bid Tabulation Bidder's List Bid Copies e e -l BID TABULATION BID # 0740 - PA TROL CARS PHILPOTT JACK ROACH DESCRIPTIOtj QTY FORD FORD 1) Patrol Cars 2 $21,595.00 NO BID Total $43,190.00 NO BID A C COLLINS FORD 1831 SOUTH RICHEY PASADENA, TX 77502 Bill HEARD CHEVROLET PO BOX 530 HOUSTON TX 77487-0530. CASA FORD 47011-10 EAST BAYTOWN TX 77521 JACK ROACH - FORD 2727 SOUTHWEST FREEWAY HOUSTON, TX 77098 LES MARKS CHEVROLET PO BOX 1119 LA PORTE, TX 77572-0119 ORANGE COUNTY FORD 1601 GREEN AVE ORANGE, TX 77630 RON CRAFT CHEVROLET/OLOS 3401 NORTH MAIN BAYTOWN TX 77521 ' CHAMBER OF COMMERCE PO BOX 960 LA PORTE TX 77572-0960 e e BIDDER'S LIST SEALED BID #0740 - PATROL CARS .l BAYOU CITY FORD PO BOX 21321 HOUSTON, TX 77226 BOB PAGAN FORD 7626 BROADWAY GALVESTON, TX 77553 INTERSTATE FORD 20405 1-45 SPRING, TX 77388 JOE CAMP FORD 621 HWY 146 SOUTH LA PORTE, TX 77571 MCREE FORD P.O. BOX 577 DICKINSON, TX 77539 PHilPOTT FORD PO BOX 876 PORTNECHES TX 77651 TIMMERS CHEVROLET 816WPASADENAFWY PASADENA TX 77506 BAYSHORE SUN PUBLISH DATES: MAY 17,1998 'MAY 24, 1998 e e -l CITY OF LA PORTE INTEROFFICE MEMORANDUM JUNE 8, 1998 TO: CHIEF BOBBY POWELL, POLlCE CHIEF FROM: SUSAN KELLEY, PURCHASING.AGENT/~ SUBJECT: BID #0740 - PATROL CARS Philpott Ford submitted the only bid on patrol cars. After comparing the unit cost of the vehicle bid in October of 1997, I contacted Bobby Swan, Philpott Fleet Manager, to ask why the vehicles cost $1,497.00 more per unit. He explained in order to meet our specifications of anti-lock brakes, he would have to get the vehicles from Georgia. ..... -. He stated the vehicles sitting on Phil/pott's lot did not have the anti-lock brake system, had bucket seats (40/40) with cloth material, and no console between the seats. However, these vehicles are readily available and would cost approximately $1,000.00 less per unit. Please indicate,your.preference of vehicles to purchase: with or without anti-lock brakes .. .., . and if the bucket 'seats with cloth material are acceptable. If you have any questions or need more information, I will be happy to help. fltfl> 1'tJ {J. 1t!,I}- -( UJ;1l .J .J< vv A. II A I ;r- ,. ( ttt /-f I vJ I~ 4'-( It f II r)/,'f/\ 17 ~ ;<"'-/ ~ 1/ -(..... 0 ~ . v v Ph: II fo I " A" 1Y~k" ~t- . Jod~ U(. JII'" . AI ~ "1" .slk ~ . ( "(,, ~P"~ .. e ASKINS & 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 CHARLES R. HUBER. .JR. BOARD CERTlF'IED - CIVIL TRIAL LAW TEXAS BOARD OF' LEGAL SPECIALIZATION May 18, 1998 Mr. Robert T. Herrera City Manager City of La Porte City Hall La Porte, Texas Re: Entex Class Action suit Dear Mr. Herrera: . TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 c~rv M~GE~ Jtos /~ / " I enclose copies of letters dated May 6, 1998, and May 14, 1998, from Entex, on this matter. Please review, and call me if you ~ ~""(:J d"'s ~" &'6~: ..~" \ ....l Vc t't ~<. 0"'(' .J ~'.' U'\; f' ~ KWA: sw Enclosures ~~ -c.,J ~...\\~~ have any questions. ~ truly, Knox W. Askins City Attorney City of La Porte , . e ASK-INS & ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. FAIR MONT PARKWAY P.O. BOX 1218 LA PORTE. 'TEXAS 77572-1218 KNOX W. ASKINS JOHN ~ ARMSTRONG TELEPHONE 281 471-18B6 TELECOPIER 281 471-2047 CHARLES R. HUBER. JR. BOARD CERTlrlED . CIVIL TRIAL LAW TEXAS BOARD Of" LEGAL SPECIALIZ...TlON May 7, 1998 Mr. Robert T. Herrera city Manager City of La Porte City Hall La Porte, Texas Re: Entex Class Action suit Dear Mr. Herrera: I enclose copy of letter which I received May 6, 1998, notifying the City of La Porte of a class action suit instituted by the City of Pearlandi against Entex, concerning Entex's payment of gross receipts under its ,franchise agreement with various Texas municipalities. If the City of La Porte wishes to remain a member of the class, it need do nothing. If the City of La Porte, on the other hand, wishes to be excluded from the class, it must file a request for exclusion. ~ I recommend that the City of La Porte remain a member of the class. I would be happy to discuss this with you and with City council, at your convenience. truly, .tt -rj; nox W. Askins city Attorney City of La Porte KWA: sw Enclosure 1"0: ma.jOll- ~\.J~ c,~ C:u~\Jc.J) f(t: tl ,\~V'y'C ,<c- . ^ 1_' n JC-~I' ~\.J. L. c:> SY'<.Il ,....h~ (Y\a. V'~IC; I \,)j \ ...c~~~...J ;.. t10S ~\ \ S. t. h c:.. J. "" ~ 0-- ,,",,-<.(..lc- ~ \,.)':) ; oJ J \.A. U ~ Ie .. "-0 o~,',,~~S +-"k,'c;. c..~Cll.~~ CAe-h'o\.,) Sv..\~ t.J\~ C~,-,-~cJ ~v~ 1'Y\l't. o.SkdJ~. c.L'. (V\.fI'.v~ &, \\'t tt sl L\ , ~th f . LANIER, PARKER & SULLIVAN, P.C. e April 4, 1998 FOUR HOUSTON CENTER sum NUMBER 1550 1331 lAMAR STREET HOUSTON. TEXAS 77010 (7131659.5200 FAX (7131659.2204 ATTORNEYS AT lAW IN RE:' ENTEX CLASS ACTION SUIT Dear Class Member: last November, Paul Grohman, City Manager for the City of Pearl and, Texas, asked me to look into the legal and accounting issues involved in the payment of franchise fees to the City of Pearland by its natural gas utility. Our research ultimately caused us to file suit against Entex, A Division of Noram Energy Corp. and Noram Energy Corporalion ("Entex"). The lawsuit is styled, City of Pearland vs. Entex, et a/., in the District Court of Brazoria County, Texas, 239th Judicial District, Cause No. 3131* JG97. After an extended hearing, the Honorable J. Ray Gayle, the district judge presiding over the lawsuit, ordered that this case be certified as a class action on behalf of a number of Texas cities. Class certification means that the City of Pearl and, through its attorneys, can serve as the class representative for those cities that the court designates as having common issues on possible underpayment of franchise fees by Enlex or its predecessor companies. Your city/town is among those Judge Gayle included in the certification order. Hence, any benefit that comes to the class might be extended to your city, unless your city chooses not to participate. Concurrent wilh Ihis letter, we are mailing you a copy of the Court's notification of the class action. I would ask you to read il careful/y. If you have any queslions, please do not hesitate to call me. I will be happy to discuss these matters with you. You may be conlacted by Entex as part of an effort to keep your city/town from including ilself in this case. A reduction in the number of lawns significantly diminishes the power of cilies and towns to collectively bargain and seek just results. In fact, Entex has already asked Judge Gayle to forbid the immediate mailing of the class notification (alerting you to your rights in this pending case). Judge Gayle denied Entex's request Entex then sought to have a Texas Court of Appeals in Houslon reverse Judge Gayle and order him 10 slay this proceeding. The Court of Appeals likewise denied Entex's motion. Should you have problems with contacts by Entex regarding this suit, please contact me. I am available as class counsel to assist you. I can be contacted at the following address and telephone number: W. Mark Lanier, Esq. c/o Lanier, Parker & Sullivan, P.C. 1331 Lamar, Suite 1550 Houston, Texas 77010 Telephone: (713) 659-5200 Facsimile: (713) 659-2204 ATTENTION: ENTEX CLASS ACTION DIVISION You have important rights that are set out in the court's notification. I urge you to read the notification carefully. If I can be of assistance or answer any questions, please call. I will continue to keep you informed of further developments. Very truly yours, . ~~~ W. Mark Lanier Plaintiff Class Counsel e e , NO. 3131.J097 CITY OF PE.ARLAND. INDIVIDUALLY, ~ AND ON BEHALF OF OTHER ~ SIMILARLY SmJATED EN IlllliS fi i .fi fi fi fi fi IN THE DISTRICT COURT OF VS. .BRAZORIAC01JNTY. TEXAS ENTEX, ADMSION OF NORAM ENERGY CORP. and NORAM ENERGY CORP. 239TH JUDICIAL DISTRICT TIDS NOTICE MAY AFFECT YOUR RIGHTS PLEASgREADCAREFULLY . , TO: The City of pearland ~ and all Texas municipal corporations, municipalities, cities, towns or villages (hereinafter referred to as '<<municipalities") listed on Exhibit A that have or have had existing or expired municipal franchise fee ordinances, street rental contracts and/or agreements with Entex, a bivision ofNoram Energy Corporation and Noram Energy Corporation or any oftheir predecessors in interest (hereinafter: referred to col1ectively as the <<LDC'') and where the municipalities were entitled to a franchise fee, street rental charge or payment based on a percentage of the "gross receipts" derived from the sale of natural gas, merchandise or business operations conducted within the city. : Your rights may be affected by a lawsuit pending in this Court under Cause No. 3131.1097. The suit is styled City of Pearland, fft al v. Entex, a Division of Noram Energy CoI'J1., d al, pending in the 239lh Iudicial District Court, Brazoria County, Texas. In this suit, the City ofPearland alleges that Entex and its predecessors in interest have not paid Tex.as Municipalities owed franchise fees, street rental payments and/or rentals pursuant to the terms of their franchise agreements. Pearland, as class representative, asserts that the defendant~ have breached their franchise agreements with Texas cities and have requested an audit ofthe financial records of the LDC and related entities. The defendants deny the allegations. G:~'Actian.NcolICI! '! e e ,. . CLASS ACTION RULING This Court has ruled the lawsuit brought by Pearland may be maintained as a class action suit for the limited purpose of detennining the meaning of "gross receipts" as used in each franchfse agreement, for an audit of..Entex~u:ecords with each. Class city.1o detennine the amounts of money.. to be paid to each city within the meaning ofc,gross receipts" under the provisions of the franchise agreements, for any breach of contract cause of action that may exist in favor of each city In the event of underpayment of funds to any of the cities within the meaning of "gross receipts" under the franchise agreement, and for reasonable attorney's fees and costs. The Court's Class Certification Order is attached for your review. The Coun's Certification Order can be amended, modified or set aside at a future date, if the Court detennines such to' be in the interest of justice. The Court has named the City ofPearJand as representative on behalf of the Class. The Court 'has 1Urthernamed W. Mark Lanier of the law firm Lanier, Parker & Sullivan, P.C., 1331 Lamar, Suite 1550, Houston, Texas 770 10,713/659-5200, 713/659-2204 (facsimile), and theirassoclated counse~ as class counsel for the Plaintiff class. . The Class consists of aU Texas Municipal corporations, municipalities, dti,es, towns or villages that have or have bad existing or expired municipal franchise fee ordinances, street rental contracts and/or agreements with Entex (a Division of Noram Energy Corporation, and Noram Energy Corporation,. or ~y of their predecessors in interest) that may have had franchise agreements and/or ordinances in place with Texas municipalities and where the municipalities were entitled to a franchise fee, payment of street remal charge or payment based upon a percentage of "gross receipts" derived from natural gas operations conducted within the city, and where there has not been the execution of any effective releases of the entire claims alleged in this litigation. G:'.P-w.~'~'NolIce 2 e e " '. The Court's Certification Order of itseJf does not mean that any money or relief will be obtained for class members from defendants. This litigation has just commenced and the litigated issues are contested issues that have not yet been decided by the Court. Rather, a ruling in this case .means that the outcome. afthia.la.wsuit, based on.a.unifonn interpr.etation of "gross receipts" whether favorable or unfavorable to either the plaintiffs or defend8;Frts - wiD apply in like manner to every class member WHO DOES NOT "rlMEL Y ELECT TO BB EXCLUDED FROM THE CLASS. ELECI'ION BY CLASS MEMBERS TO BE INCLUDED O~ EXCLUDED Since you are listed as a designated municipal corporation, municipality, city, town or village that fits the above description of a Class Member, you have a choice of remaining as a class member or opting out of the Class on whose behalf this lawsuit is being maintained. If you want to "opt out" or be excluded from the Class, your city, town or village must notify the Court at the address listed herein by certified mail, return receipt requested and post-marked not later th~ August 1, 1998. By making such an election to opt out or be excluded from this Class, 1. Your city will not share in any recovery that might be paid to Class Members as a result of trial or settlement of this lawsuit; and 2. Y OUT city will not necessarily be bound by any decision in this lawsuit, whether favorable or unfavorable. If you do .not request exclusion (Le. to opt out) from this Class by the deadline set forth in this order, you will be included in the Class. If you want to be excluded from the Class, your municipality must complete the enclosed form ("Request for Exclusion") and return it to: Lynn Klement P.O. Box 1744 Angleton, Texas 77516.1744 O:'P~.AcllCllll'Nolioc 3 ~: . e ~ by certified mail, return receipt requested and postmarked not iater than August 1, 1998. Any Class Member may appear in this lawsuit through its own counsel. Iryou do not choose your own counse~ your interest will be represented by Plaintiffs' ClaSs Counsel in this lawsuit. If you do not take.~y' action.to opta.ut or b.e excJuded,.yo,u. will be included in the Class.. If you want to remain a melnber of this Class, it is not necessary for you to file anything at this time. You are not required to file any pleading or form at this tinie to remain a Class Member. . By remaining a Class Member, any claims of damages against the defendants under any claims or causes of action asserted by the Plaintiff class representative will be dctennined in this case and cannot be presented in any future lawsuit. RIGHTS AND OBLIGA nONS OF CLASS "MEMBERS If you remain a member of this Class: 1. The City of Pearl and and its attorneys, as described above. will serve as your repre.s~ntative and attorneys in the prosecution of the claims against the defendants in this case. 2. Your participation in any recovery which may be obtained from the defendants through trial or 'lettlement will depend on the result ofthis la~suit. Ifno recovery is made on behalf of the class, you will be bound by that. outcome. 3 . You will be entitled to notice of any ruling reducing the size of the class ahd also to notice ot: and an opportunity to be heard, with respect to any settlement of claims in this case. FURTHERPROCEEDlNGS Because ofthe substantial discovery and oth~ pretrial proceedings that remain to be done in this case, a trial date in this case has not yet been set. You may communicate with Plaintiff's class counsel if you have evidence you believe would be helpful in establishing class 'claims, and you may ~lII.tinta-'Aaiaa'NcotIce 4 . e t ~ be asked by the parties to pr~vide ~onnation relevant to this case during the discovery phase. ADDITIONAL INFORMATION You may co"nununicate with Plaintiff class counsel as your attorneys in this litigation if you desire by writing or caJling.mnu.t.the following addi1:Ss: W. Mark Lanier Lanier, Parker & Sullivan, P.C. 1331 Lamar, Suitt 1550 Houston, Texas 17010 713/659..5200 113/659-2.204.PusimiJe-. Attn: Entex Class Action Division You may, of course, seek the'advice and guidance of your own attorneys if you desire. All pleadings and other records in this litigation may be examined and copied at any time during regular office hours at the office of the District Clerk in the Brazoria County Courthouse, located at 111 E. Locust Street, Angleton, Texas 77515. Any questions concerning pleadings and procedural matters pertaining to this notice may be directed to the Brazoria District Clerk at the following address and telephone number: DATED this Mr. . Jerry Deere 400 Counhouse III E. Locust Street Angleton, Texas 77515-4678 409/849-5711 22.~yor ~ , 1998. ~G~~~~'e O:lI'eeNnoN'I~'Acti",,'Nada: s ~, . ~ e CAUSE NO. 3131*JG97 CITY OF PEARLAND, INDIVIDUALLY, AND ON BEHALF OF OTlIER SIMILARLY SITUATED ENTITIES Plaintiff, VS. ENTEX, A DIVISION OF NORAM ENERGY CORP. and NORAM ENERGY CORP., Defendants. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ IN THE DISTRICT COURT OF BRAZORIA COUNTY, TEXAS 239TH JUDICIAL DISTRICT In Re: ENTEX Franchise Fee Class Action REQUEST FOR EXCLUSION The undersigned has read the notice of class action dated April 22, 1998 and does NOT wish to remain a member of the Plaintiff class certified in the case The City of Pear/and, as Ru/e 42 Class Representative, on Behalf of Itself and Other Similarly Situated Entities v. Entex, A Division of Noram Energy Corpora/ion and Noram Energy Corpora/ion. Date: Typed Name of City Typed Address of City Typed City, State and Zip If you want to exclude yourself from the class, you must complete and return this form by mailing certified mail, return receipt requested, postmarked on or before August I, '1998 to: Lynn Klement P. O. Box 1744 Angleton, Texas 77516-1744 Signed Name Typed Name Authorized City Representative IF YOUR CITY CHOOSES TO REMAIN IN THE CLASS, YOU DO NOT HAVE TO SEN,D IN THIS FORM. e jtfJlL~U o'c1ock L\- :;rJ-.Jt~ JERRY DEERE NO. 3131. J097 Cieri< of " District Court Brazo~a Co., By _ Deputy CITY OF PEARLAND, INDIVIDUALL Y, ~ IN TIm DISTRICT COURT OF AND ON BEHALF OF OTHER ~ SIMILARLY SlTUA TED ENTITIES ~ ~ i fi ~ ~ f to e ..1 At m YS. BRAZORlA.Co.UNTY. TEXAS ENTEX, A DMSION O~ NORAM ENERGY CORP. and NORAM ENERGY CORP. 239m ruDICIAL DISTRICT CERTIFICA nON ORDER On the ~d~ "of ~ . 1998. came.on to be heard Plaintifrs, City of Pearland, Rule 42 Motion to CertifY Class Action and defendants' responses to same. After considering the evidence and materials on file, as well as all briefs and pleadings. and argument of c::ounsel, the Court finds that the ~~on "for class certification should be partially granted and that a class action is pennitted to be maintained pursuant to Rule 42(a) and 42(b)(4), Tex.R.Civ.P. It is, therefore, " " ORDERED, ADJUDGED AND DECREED, subject to further order of this Court in accordance with Rule 42(c)(l), Tex..R.Civ.P., that this ease styled the Qty of PetU'lantl, et al V's. Ente%, a Division of Norum Ene'1lY Corp., eI ai, shall be maintained as a class action on behalf of the following class of Plaintiffs: All Texas municipal corporations, municipalities, cities, towns or villages (hereinafter referred to as "municipa1i~ies") listed on Exhibit A that have or have had existing or expired municipal franchise fee ordinances. street rental contracts and/or agreements with Entex, a Division ofNoram Energy Corporation and Noram Energy Corporation or any oftheir predecessors in interest (hereinafter referred to collectively as '"Bntex") and where the municiPlltities were entitled to a franchise fee, street rental charge or payment based on a percentage of the "gross receipts" derived from the sate of natural gas, merchandise or business operations conducted within the city. ., . e i This class is certified for the limited purpose of a declaratory judgment in determining the meaning of the teon "gross re~ipts" as used in each franchise agreemen~ between the cities listed on Exhibit A and Bntex, for an audit ofEntex's records with each class city to determine the amounts of money to be paid. to eacb.ci~.wit.hin the.meariing.orugross ceceipts'~ under the provisions ofthEL franchise agreements, for any breach of contract cause of action that may exist in favor of each city in the event ofundcrpayment offunds to any of the cities within the meaning of "gross receipts" " under the franchise agreement, and for reasonable attorney's fees" and costs. It is further ORDERED, subject to further order of the Court pursuant to Rule 42(c)(I), Tex.R.Civ.P., that the City of Pearl and is designated as class representative, and W. Mark Lanier, Lanier, Parker & Sullivan, P.C., 1331 Lamar, Suite 1550, Houston, Texas 77010, is designated as Class Counsel for Plaintiffs. The Court expressly finds thllt this certification order can be amended, modified, or set aside at a future date before final jUdgment in trus cause should the Court detennine such to be in the interest of justice. Rule 42(c)(I), Tex.R.Civ.P. SIGNED this ~y of. ~ . 1998. II ~ JUDGE · S~G 1. Agua Dulce 2. Alice 3 , Alvin 4. Ames S. Angleton 6. Aransas Pass , 7. Arp 8. Bastrop 9. Baytown 10. Beach City II. Beasley 12. Beaumont 13. Beckvi11e 14. BeevilIe 1 S. Bellaire 16. Bevil Oaks 17. Big Sandy 18. Bishop 19. Bridge City 20. Brookshire 21. Brookside Village 22. Buda 23. Bullard 24. Bunker Hill Village 2S. Canhage 26. Center 27. China 28 Cibolo 29. ClarksviUe City 30. Clear Lake Shores 31. Cleveland 32. Clute City 33. Colmesneil 34. Conroe 3 S. Converse 36. Conigan 37. Crockett J 8 Cut and .Shoot 39 Danbury 40. Dayton e . , EXHIBIT A ,~ e e 41. Oiboll 42. Dickinson 43. Driscoll 44. Eagle Lake 45. East Mountain 46. Edgewood 47. Edna 48. El Campo 49. Elgin SO. Elkhart 51. EI Lago . . 52. FaJls City 53. FloreSvUle 5 4 Freeport SS . Freer 56. Friendswood 57. FruitvaJe 58. Galena Park 59. Ganado 6Q. ~rden Ridge 6 r . Giddings 62. Gladewater 63. Goliad 64. Goodrich 65. Grand Saline 66. Grapeland 67. Gregory 68. GrovetOD 69. HaUettSville , 70. Hallsville 71. Hawkins 72. Hedwig Village 73. Henderson 74 Highland~ 7S. Hillcrest Village 76. Hilshire Village 77. Hitchcock 78. Hondo 79. Houston 80. Hudson 81. Humble 82. Hunters Creek ViUage 83. Huntsville 84. lngleside 8S. Ingleside by the Bay 86. 87 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. ..'98. 99. 100. 101. 102. 103. 104. 10S. 106. 107 108. 109. 110. Ill. 112. 113. 1l4. 115. 116. 117. 1.18. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. Jacinto City Jacksonville Jasper Jersey Village j ones Creek J ourdanton Kames City Katy Kemah Kendleton Kenedy . Kilgore KingsviJle KirbyviDe Kyle Lacoste La Grange Lake Jackson La MaJ'lIue La Porte Laredo Latexo League City Liberty Lindale Liverpool Livingston Longview Lovelady Lufkin Lumberton Manvel Marlon Marshall Mathis Mineola Missouri City Mont Bclvieu Morgan's Poin~ Nacogdoches Nassau Bay Needville New Braunfels New ~ndon Nordheim " e e ~ e e 131. North Cleveland 132. O~ Ridge North 133. Odem 134. Orange 135. Orange Gtove. 136 Orchard 131. Ovenon 138. Oyster Creek 139. Palacios 140. Panorama 141. Pasadena 142. Pearland ..' 143. Pine Forest 144. Pinehurst 145. Piney Point ViJJ~e 146. Pleak 141. Pleasanton 148. Pont Comfort 149. Portland 150. Port Lavaca I S I. Poteet 152. Poth 153. Premont 154. RefUgio 155. Richmond 156. Richwood IS7. Riverside 158. Roman Forest 159. Rose City 160. .R.ose HiD Acres 161. R.osenberg 162. Runge 163. Rusk 164. San Augustine 165. San Diego 166. San MarcOs 167. Santa Fe 168. Schertz 169. Schulenberg 170. ScottsvUle 171. Seabrook 172. S ead rift 173 Seguin '174 Selma 175 Shenandoah 176. Shepherd 177. Shoreacres 178. Silsbee 179, Sinton 180. Smithville 181. Sour Lake 182. South Houston 183. Southside Place 184., Spring Valley 185. St8fford 186, Sugar Land 187. Taft. . ~ ',8. Taylor Lake Village 189. Teneha 190. Texas City 191 TImpson 192. Trinity 193. Troup 194. Union Orove 195. Universal City 196. Van 197. Victoria 198. Vidor 199. Wallis 2~0. Warren City 201. Waskom 202. Webster 203. Weimar 204. West Columbia 20S. West Orange 206. West University Place 207. Wharton 208. White Oak 209. Willis 210. Wills Point 211 Yorktown e e . , . . \ ",'. --.I.., , li .e ENIEX e A NORAM ENERGYCOMPANY George C. Hepburn, 11/ Vice President and General Counsel May 6, 1998 Knox W. Askins City of La Porte PO Box 1218 LaPorte, TX 77572-]218 RE: City of Pearland v. Entex, a division of NorAm Energy Corp., et al; No. 313] * JG97; In the 239th Judicial District Court of Brazoria County, Texas Dear Mr. Askins: Two weeks ago, Judge J. Ray Gay]e, a state district judge in Brazoria County, certified a class action lawsuit against Entex, with Pearl and, Texas, as narned plaintiff for almost all cities Entex serves in Texas. Houston attorney, Mark Lanier, was designated class counsel. Assisting Mr. Lanier in the case, among others, were Benjamin Hall and the John O'Quinn law firm, who have filed similar class action cases against Houston Lighting & Power Company, Central Power & Light, Southern Union Gas Company and others. Your city should receive formal notice of the class action within the next few days. Plaintiffs counsel does not claim that Entex has pocketed money that it owed a city. Rather, the Plaintiffs counsel allege, in effect, that Entex does not charge its customers and remit to cities as much as it should for franchise fees. The lawsuit centers on the words in municipal street rental ordinances or Entex franchise ordinances that provide for payments to cities of a percentage of the company's "gross receipts" from gas sales, merchandise sales, and/or business conducted. The sole question is: what does the term "gross receipts" include. Plaintiffs' counsel, for example, claim that sales tax - a tax on the customer collected by Entex as agent or trustee and forwarded to the State Comptroller - is an Entex gross receipt from the sale of gas. No utility in the United States would agree with this COritention. Entex has not made franchise payments on sales tax collections in the past, nor did Entex include a franchise payment on sales taxes in its charges to its customers. This practice, ho\vever, is under challenge in the class action case filed by Pearland. If the plaintiffs reading of franchise obligations prevails, it will be reflected in increased costs, primarily to commercial customers,S! who will ultimately pay the price of financing the 51 Generally, sales taxes do not apply to residenti<!1 or industrial gas customers. Although some cities may impose sales taxes on residential purchases, commercial customers pay the bulk of gas sales taxes. 1ROO Smith Street. P. O. Box 2628. Houston, TX 77252.2628 .713/654-5535. FAX 713/654-5549 e RE: City of Pearland vs. Entex May 6,1998 Page 2 e. new theory. Entex does not believe that a sales tax is a gross receipt of the company from a gas sale, nor does it wish to add additional franchise fees on sales taxes to customers' bills. Your city almost surely will be counseling with you about whether it wishes to delegate this sensitive local issue to class action lawyers. We urge you to call on us to answer questions and to invite us if needed to appear before your city council. Ultimately, we ask you to counsel against joining a remote class action that could adversely affect your city's gas business, and instead keep that issue in local hands. Your city does have a clear choice. The issue to be decided in the case - the meaning of "gross receipts" as used in the Entex franchises - is a discrete, narrow issue, and your city can take advantage of any resolution of that issue without being a class member, without any of the exposures of a party for the costs or expenses of litigation. If your city would prefer to keep this kind of issue at the local level, if it would prefer not to become involved in this lawsuit, if it would prefer to see the outcome of the case and to then gauge effects on your residents if adopted locally, Entex will. accommodate those preferences. We will "commit in writing that,' if your city excludes itself from (opts out of) the lawsuit, on any resolution of the case, by final judgment after appeal or by settlement, Entex will offer your city any applicable interpretation and application of franchise language that is covered by any such judgment or settlement. Your city can then independently evaluate local effects, look at local economic development issues and concerns, and accept or reject any newly determined franchise payment interpretation, obligation, and recovery. We enclose for your information copies of the plaintiffs petition and Entex's answer and counterclaim. Thank you for your consideration of this most important local issue. We will be pleased to discuss any aspect of the case with you at your convenience. ZtLr GCH/cdm . - Knox W. Askins Attachment to Letter Dated: May 6, 1998 ATTACHMENTS: 1. Plaintiff's Original Petition filed December 4, 1997 2. Plaintiff's First Amended Petition filed April 17, 1998 3. Defendant's Original Answer filed January 16, 1998 4. First/Second Amended Original Answer and Counterclaim filed April 17, 1998 NOTE: According to our records, you represent the following city or cities: La Porte If our information is in any way incorrect, please contact the office of George C. Hepburn, Vice President and General Counsel for Entex, a division of NorAm Energy Corp., located at 1600 Smith, Room 1194, Houston, Texas 77002, telephone (713) 654-5535 and facsimile (713) 654-5549. ,. 'i" e ... e . . WB~~[!l l'lt._.._____. o.Clo<:k.__.._.... M -r;. C -' ., . ., , ., CAUSE NO. ,j /.,) 1 *"",J -~: ! DEe ., 4 1997. CITY OF PEARLAND IN THE DlSTRICT Cc~!f!$!;~~~~'~~~~~;ria Co. Texas BY ---..-__.__.__.___ DEPUTY ~ ~ ~ ~ ~ ~ ~ 9 ~ 9 ~ Plaintiff VS. BRAZORIA COUNTY, TEXAS ENTEX, A DIVISION OF NORAM ENERGY CORP. and NORAM ENERGY CORP. Defendants d .:J..:.~ '7 1'H JUDICIAL DISTRICT PLAINTIFF'S ORIGINAL PETITION AMll,gEQUEST FORJURX D..EMAlm TO THE HONORABLE JUDGE OF SAID COURT: Plaintiff, the City of Pearland, a home rule city and municipal corporation, herein demands a trial by jUry and complains as follows: I. PARTIES 1.1 Plaintiff, City of Pearl and (hereinafter referred to as .Plaintitl" or alternatively .Pearland") is an incorporated municipality located in and governing portions of Brazoria County, Texas. 1.2 Defendant, Entex, a division of No ram Energy Corporation (hereinafter referred to as .Entex"), is a Delaware corporation providing natural gas sales and services within the state of. Texas and City of Pearl and. This Defendant may be served with process in this action by serving its registered agent, C.T. Corporation. 350 N. S1. Paul Street, Dallas, Texas 7520 I. 1.3 Defendant. Nornm Energy Corporation (hereinafter referred to as .Noram"). is a Delaware corporation providing natural g3S sales or services within the state of Texas and City of Pearland. This Defendant may be: served with process in this action by serving its registered agent. C.T. Corpor~Jtion. 350 N. St Paul Str~et. Dallas. T e:xas 75201. e e ... : II. JURISDICTION AND VENUE 2.1 Plaintiff's action against the Defendants is maintainable in Brazoria County, Texas, in that all or a substantial part of the events or omissions giving rise to Plaintiff's causes of action arose in Brazoria County, Texas. Specificnlly, Plaintiff's causes of action against Defendants involve both (I) contract(s) entered into and performable in whole or in part in Brazoria County, Texas, and (2) torts committed by the Defendants occurred in whole or in part within Brazoria County, Texas. 2.2 Finally, venue is proper in Brazoria County, Texas, in that the Plaintiffhas a contract writ~ng which is to be performed in B~oria County, Texas. DI. FACTS 3.1 F 9r many years, Plaintiff has had franchise agreements with Entex and the predecessors-in-i~terest of Entex.1l that established certain terms and conditions under which Entex, as the local natural gas distribution company (the alDC"), would be permitted to operate its business in, under, upon, across and nlong any and all present and future roads, highways, streets, avenues, alleys and other public property owned or controlled by Plaintiff and providing for compensation to be paid by Entex to Plaintiff for such privilege. Pursuant to Texas law, no natural gas enterprise such as Entex could use public property in a city to conduct its own private business without the city's approval or consent, TEX. REV. CIV. STAT. ANN. Art 1436b. YFr:mchise l1greemenrs were simultmeously entered into with compllJ1ies such :1S Corporntion, Houston Nl1turnl Gns Corpor:ltion, Penzoil United. and Arkla, Inc. Under the terms and conditions of these l1greemenrs, the parties agreed that the duties l1nd obligl1tions pll1ced upon the grnnlee would be binding upon its successors and 3Ssigns. As to these originall1greements, they were ultiml1tely trnnsferred to Ente:c. Hereinafter, Entex will be refetred to as the loc::1 gl1S distributor for the City of Pe:lrll1nd. -2- " . e e '. ." : .. ., .J._ Under the tenns of the current Agreement, Entex has agreed to pay Pearland for such use. Neither Entex nor Plaintiff has tenninated the Agreement, and the Agreement continues in force to the present with minor modifications and changes that are not material to this dispute. 3.3 Plaintiffhas fulfilled all ofits obligations under the Agreement, and Entex has fully made use of the privileges conferred by the attached Agreement. Therefore, all conditions precedent to bringing this action have been perfonned or have occurred. IV. F ACTS AS TO ENTEX 4.1 Defendant Entex, at all relevant times to this litigation, has been the city-franchised ~d authorized local natural gas distributor in Pearland. Entex provides all or substantially all of the natural gas sales and services within ~e corporate limits of Pearl and. As such, its gross receipts are subject to the franchise fee or compensation provisions set forth in the Agreement. 4.2 T.exas law strictly construes this type of agreement between Plaintiff and Entex. Specifically, agreements that grant rights and privileges to users of public property by private business enterprises, such as Entex, are strictly construed against the franchisee or business operator. Thus, unless a right or privilege is expressly granted or provided for in such a franchise agreement, the right or privilege is not conferred. Consistent with this legal principle, Plaintiff expressly provided for the types of services and operations that Entex was authorized to conduct while using Plaintitrs public property to provide its natural gas sale and distribution services. Any uses beyond those authorized and conferred by the Agreement would be unauthorized, unlawful and IIltra vires; 4.3 Over the years. Entex hns purportedly complied with the tenns of its agreements with the Plainti iT by providing payments of fees to Plaintiff. Entex, however, never disclosed to Plaintiff .. -,)- e e .. . . .. all of its accounting infonnation to enable Plaintiff to properly verify that the amounts that were paid by Entex were proper, accurate and correct. 4.4 In good faith. Plaintiff reasonably relied upon the payment and representations it received from Entex and its agents each year concerning the amounts that were due and owing pursuant to the agreements, having no reason to suspect that Entex and its agents had or would conceal material and relevant infonnation regarding its revenue data, gross receipts and related charges and fees that were subject to but not used as a basis for detennining gross receipts for purposes of making municipal fee payments pursuant to the agreements. 4.5 Recently, however, Plaintiff has learned that Entex has conspired by way of private agreements between themselves and others to deprive the Plaintiff of the full amount of fees that are due Plaintiff. Based upon info~ation and belief, Plaintiff is infoqned and believes that Entex has deliberately engaged in conduct that, by des1gn, substantially reduces the amounts of municipal fees that it pays to Plaintiff and that such conduct is continuing. This past and continuing misconduct has taken on several shades. First, Entex has arbitrarily, incorrectly, and deliberately excluded a significant portion of its annual revenue base related to natural gas sales within municipalities from the revenue base upon which it has calculated franchise fees payable to Plaintiff. For example, Entex has entered into an agreement with one of its affiliated companies to supply customers with natural gas. Entex has contracted with the affiliate company to transport the affiliated companies' naturol gas to customers inside the cities. 4.6 Second, Entex has not used Ugross receipts" in its calculations ,of payments to municipalities beciluse it has excluded from such amounts fees, ta."Ces, and other revenue receivedeas an element of the revenue base used to calculate fmnchise payments to municiPillities. The result has been iln annual loss of revenues thilt would be due to Plaintiff. -l- .. .' e . . e ... 4.7 Third, Plaintiff has learned that Entex has not included other customer Ufees" and generated within municipalities in its calculations of gross receipts when making payments to Plaintiff. 4.8 Fourth, Plaintiff has learned that Entex has deliberately or through neglect or oversight has not timely included natural gas sales and/or services within newly annexed territories within municipalities within their calculations of franchise payments to cities, resulting in substantial loss of revenue to Plaintiff. 4.9 The above actions on the part of Entex have been unilaterally taken and performed without any discussion or pennission of Plaintiff. Such activities constitute a breach of the Agreement with Plaintiff and constitute a continuing scheme of fraudulent conc:ealment and misrepresentation of material facts. V. FACTS TO NORAM 5.1 Plaintiff asserts that Noram is also responsible to Plaintiff in that Entex is a division of Noram. As such, the liability of its division is imputed to that of No ram. VI. CAUSES OF ACTION Audit 6.1 The preceding factual statements are incorporated herein by reference. 6.2 Plaintiff sues for a court ordered audit against Defendants. -5- . - .. ~.. e e "'. . .' . . . VII. JUR Y DEMAND If a trial becomes necessary, Plaintiff requests a jury trial in this case. The appropriate fees has or will be paid prior to the commencement of trial. VIII. PRA YER 8.1 Wherefore, Plaintiff requests a court ordered audit and all just relief. Respectfully submitted, LANIER, .PARKER & SULLIVAN, P.C. ~"'I. By: -- W. Mark Lanier State Bar No. 11934600 1331 Lam~, Suite 1550 Houston, Texas 77010 (713) 659-5200 - Telephone (713) 659-2204 - Telecopier Attorneys for Plaintiff G:\WPDOCS\p:arIa!'ll\PETTTION-C>risina!-Jury Oem. wpcI -6- ~ e e ~~ ~. \~ \:~ Ll . . ..;' .. . . .' .......... ~ ~ ':. j.:......i\ ., .. . .... ., . ., ....,. " APR 1 7 \998 CAUSE NO. 3131 *J097 ENTEX, A DIVISION OF NORAM ENERGY CORP. and NORAM ENERGY CORP. CITY OF PEARLAND, INDIVIDUALLY, ~ AND ON BEHALF OF OTHER ~ SIMILARL y SITUATED ENTITIES ~ ~ ~ ~ ~ ~ ~ .J:.~':!':;~; ~ i~-r::'., IN THE DISTRICT CO~T OF' c.: :Z;"l:i;~? \::'.;'.. ':.' .....__._... _._.__..... ._'_ __.._ ':,.,_, 0"' VS. BRAZORIA COUNTY, TEXAS 239TH ruDICIAL DISTRICT PLAINTIFFS' FIRST AMENDED PE1TfION PARTIES I . Plaintiff: City of Pearland ("Plaintiff' or uPearland") is an incorporated municipality located in and governing portions of Brazoria County, Texas. Plaintiff brings this suit in its individual capacity as well as in a representative capacity pursuant to Rule 42, Texas Rules of Civil Procedure. 2. Defendant, Entex, a division of Noram Energy Corporation f'Entex"), is a Delaware corporation providing natural gas sales and services within the state ofTe:xas and City of Pearl and. This Defendant has been served with process and has answered. ) Def~ndant, Noram Energy Corporation (UNoram"), is a Delaware corporation providing natural gas sales or services within the state of Texas and City ofPearland. This Defendant has been served with process and has answered. VENUE 4. Venue is proper in Brazoria County, Texas, under Section 15.002, Tex.Civ.Prac.&Rem.Code, in that all or a substantial part of the complained-of events or omissions giving rise to the claims alleged herein occu,rred' in Brazoria County, Texas. Such claims and causes of action against the Defendants involve both 'contract(s) entered into and perfonnable in whole or in part in Brazoria ( i'II'caot.","f\J11coding\PI::TTT\ON.f"on' AmcndccLwpd e e County. Texas, as well as torts committed by Defendants which occurred in whole or in part in Brazoria County. Texas. 5. Venue is also proper in Brazoria County, pursuant to ~ 15.035. Tex.Civ.Prac.&Rem.Code, because Defendant contracted in writing to perform duties and obligations in Brazoria County, Texas, and said contract expressly names Brazoria County in the contract and suit is herein brought by reason of such contractual obligations. ALLEGA nONS 6. This suit is brought for recovery of damages under breach of contract and seeks declaratory judgment on the legal interpretation of rights and duties of the parties to the agreements at issue, pursuant to Chapter 37. Tex.Civ.Prac.&Rem.Code, as well as the construction and interpretation o( what constitutes "gross receipts" in the referenced agreements. Plaintiffs also seek an audit and/or financial review of the Defendants' records to quantify all underpayments that are due and owing to Plaintiffs_ 7. For many years, Plaintiffs have had agreements with Entex and the predecessors-in-interest of EntexY. These agreements established certain terms and conditions ul1;d"er which Entex, as the local . natural gas distribution company (the "LDC"), would be pennided to operate i~s business in, under, upon, across and along any and all present and future roads, highways, streets, avenues, alleys and other public propeny owned or controlled by Plaintiff and providing for compensation to be paid by Entex to Plaintifffor such privilege. Pursuant to Texas law, no natural gas enterprise such as Entex !'Franchise agreements were simultaneously entered into with companies such as Corporation, Houston Natural Gas Corporation, Penzoil United. and ArkJa, Inc. Under the terms and conditions of these agreements, the parties agreed that the duties and obligations placed upon the grantee would be binding upon its successors and assigns. As to these original agreements, they were ultimately transferred to Ente:( Hereinafter, Entex will be referred to as the local gas distributor for the City of Pearl and. <i :\Pcarbncl\Plcaclin&\PElTIlON-F"nt Amcnclcd. wpd 2 e e could use public property in a city to conduct its own private business without the city's approval or consent. See e.g., TEx. REv. eIV. STAT. ANN. Art I 436b. Under the terms of the individual agreements, Entex agreed to pay Plaintiffs an amount for such use. 8. Plaintiffs have fulfilled all obligations under the Agreements relevant to this dispute, and Entex has fully made use of the privileges conferred under the agreements. A copy of a representative agreement is attached as Exhibit "A". Accordingly, all conditions precedent to bringing this action have been performed or have oCcurred. 9. Entex provides all or a substantial amount of the natural gas sales and services within the corporate limits of the Plaintiff cities. Entex derives gross receipts from such gas operations upon which it has promised to pay fees and compensation to the Plaintiff cities. Over the years, Entex has purportedly complied with the payment tenns of the agreements by providing a self-determined franchise fee payable to Plaintiffs. Entex, however, has not used the proper definition of "gross receipts" when determining these payments and has excluded amounts from the franchise calculations that otherwise should have been included. As a result, Plaintiffs have been underpaid the proper, accurate and correct amount of franchise fees due and owing to them. 10. Recently, Plaintiffs learned and have reason to believe tbat Entex has conducted its financial affairs in such a manner as to misdirect amounts from its CCgross receipts" that should be included in the calcuhltion of payments to Plaintiffs. Based upon information and belief. Plaintiffs allege that Entex has engaged in conduct that, by design, has permitted receipts to be incorrectly collected by affiliated companies and/or others from gas customers inside Plaintiff cities, while not including such amounts in the proper calculation of franchise payments to Plaintiffs. The result has been repeated loss and reduction of payable fees to Plaintiffs, for which suit is now brought. G :\PcMt.vld\l'l~dina\PE11T10N-F"nt Amended. wpd 3 e e II. Plaintiffs further allege that Entex has not timely included in fee calculations gas sales and receipts within newly annexed territories within Texas municipalities, as required by the agreements. Such delay has also resulted in a substantial loss to Plaintiffs. 12. Plaintiffs allege that the conduct set forth above, which has resulted in Entex underpaying Texas cities owed franchise amounts, is in common with all putative class members. Entex entered into substantially identical payment obligations with all class members and this Court's detennination and construction of the tenn ~. gross receipts" within Pearland's agreement with Entex will be applicable to all class members. Accordingly, Plaintiffs assert the foregoing allegations on behalf of all class members and request this Court certify a class under Rule 42(b)(4), Tex.R.Civ.P. Attached as Exhibit "8" is a copy of a list of putative class members. Plaintiffs also supplement this petition with the briefing and arguments already on file in this cause in support of class certification. ALLEGA nONS AS TO NORAM 13. Plaintiff s assert that Noram is legally responsible because Entex is an unincorporated division or other accountable legal entity for which Noram is liable. CLAIMS 14. Plaintiffs allege that the foregoing conduct gives rise tb claims under theories of breach of contract and tort, as well as relief under the Texas Declaratory Judgment Act. Plaintiffs also seek an audit or financial review of relevant records for detennination of all underpayments and owed amounts to Plaintiffs. Plaintiffs seek a judicial detennination of the construction of the payment provisions in the agreements and of the tenn "gross receipts" as such tenn is used in the common contracts at issue in this case. (j :"'ur1:and\PIc~ding\PE1T1l0N-F"lnl Amcnclcd. wpcI 4 e e PRA YER 15. Given the above, Plaintiffs request the following relief I. Class certification, pursuant to Rule 42, Tex.R.Civ.P.; 2. Recovery of all damages due and owing to Plaintiffs because of Defendants' breach of contract, including award of attorney's fees and court costs; 3. AjudiciaJ declaration of the payment provisions and the term "gross receipts" as such are used in the contracts at issue in this litigation; 4. A court-supervised audit or financial review of Entex's financial records so that damages or underpayments can be quantified; 5. Declaratory judgment pursuant to Chapter 37, Tex.Civ.Prac.&Rem.Code; 6. Attorney's fees pursuant to Chapter 37 and/or 38, Tex.Civ.Prac.&Rem.Code; 7. Pre- and post-judgment interest as allowed by law; 8. Trial by jury; and 9. Such other relief to which they may be justly entitled. 16. Plaintiffs affirmatively allege that their damages are within the jurisdictional limits of this Court. Respectfully submitted, LANIER, PARKER & SULLIVAN, P.C. By: W. Mark Lanier State Bar No. 11934600 1331 Lamar, Suite 1550 Houston;-Texas 77010 (713) 659-5200 - Telephone (713) 659-2204 ~ Telecopier ATTORNEYSFORPL~FS G :\I'carUnd\l'ludingIPE1T110N-F'1nl Amended. wpd 5 e e CERTIFICATE OF SERVIC~ I hereby certifY that a true and correct copy of the foregoing instrument has been forwarded to all counsel in accordance with the Texas Rules of Civil Procedure on this the _ day of April, 1998. w. MARK. LANIER ~ ~ (j :\Parbncl\J'lcadinj!\PE11T10N-F"n1 Amcnclcd. wpd 6 ~ e e NO.3131*JG97 CITY OF PEARLAND ~ IN THE DISTRICT COURT OF ~ r- "". ." Plaintiff ~ .1' '. .". ~ VS. ~ BRAZORIA COUNTY, TEXAS ~ ENTEX, A DIVISION OF ~ NORAM ENERGY CORP. and ~ NORAM ENERGY CORP. ~ ~ Defendants. ~ 239TH JUDICIAL DISTRICT ORIGINAL ANSWER AND PLEA IN ABATEMENT Entex, a division of Noram Energy Corp, and Noram Energy Corp. (collectively "Entex") file this Original Answer and Plea in Abatement: General Denial I. Pursuant to Rule 92 of the Texas. Rules of Civil Procedure, Entex asserts a general denial to all claims and causes of action asserted by Plaintiff, and demands strict proof thereof by a preponderance of the evidence. Plea in Abatement 2. Under Texas law, a city generally has control over its streets. As a result, a utility is usually required to obtain the city's consent in order to cross under the streets to provide services. For Entex and most other utilities, the form this consent usually takes is what is called a Franchise Agreement In the typical Franchise Agreement, the utility and a city agree that the utility has the right to cross city streets in exchange for a payment. 3. Entex and the City of Pearl and ("Pearland") have such a Franchise Agreement in place. Under Ordinance No. 508, passed by the Pearland City Council on May 27, 1986, Entex is e e permitted to construct, maintain, operate and repair a system of pipe lines, gas mains, laterals and attachments on property owned or controlled by Pearland. In exchange for the right to operate its business on, under and along property owned by Pearland, Entex pays Pearland two .percent of the gross receipts for the sale of gas to residential, commercial and industrial customers within Pearland. 4. In this lawsuit, the only relief sought by Pearland is a court-ordered audit, allegedly aime~ at determining whether Entex is paying the proper amounts under the Franchise Agreement. Why this lawsuit was filed is unclear since the Franchise Agreement provides Pearland with specific audit rights. Section 6 of the Franchise Agreement states that: "Upon request of [pearland], [Entex] shall present to it any and all records, accounts and books for inspection relative to the gross receipts of [Entex] within the corporate limits of [Pearl and] . " 5. This lawsuit should be abated on the grounds it was prematurely instituted. Although section 6 of the Franchise Agreement expressly grants Pearl and audit rights, Pearland has never requested that it be permitted to exercise its audit rights under the Franchise Agreement. As such, there is no controversy between the parties. Texas Ass 'n. of Business v. Air Control Bd., 852 S. W.2d 440,446 (Tex. 1993) (for a plaintiff to have standing to bring a lawsuit, there must be (a) a real cont~ov~rsy between the parties, which (b) will be actually determined by the judicial declaration sought). 6. To this very day, Entex has received no correspondence and no telephone calls from any representative or agent of Pearl and requesting the opportunity to review the records relative to the gross receipts ofEntex within the corporate limits of Pearl and. It would therefore be premature for this court to address Pearland's request for a court-ordered audit when Pearland has not attempted to e~orce its audit rights under the Franchise Agreement. . - 2 e e Conclusion Entex requests that this suit be abated until there is a recognizable dispute between the parties. Entex further requests that upon trial or other final hearing of this matter,. Plaintiff take nothing, that judgment be entered against Plaintiff and such other and further relief to which Entex may be justly entitled. Respectfully submitted, Bracewell & Patterson, L.L.P. Andrew Edison State Bar No. 00790629 South Tower Pennzoil Place 711 Louisiana Street, Suite 2900 Houston, Texas 77002-2781 Telephone: (713) 223-2900 Facsimile: (713) 221-1212 Attorneys for Defendant 3 e e CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing document was forwarded by certified mail, return receipt requested on this , , "'" day of January, 1998 to all counsel of record: w. Mark Lanier Lanier, Parker & Sullivan, P.C. 1331 Lamar, Suite 1550 Houston, T~xas 770 I 0 CL-~ Andrew M. Edison 4 e e VERIFlCA nON STATE OF TEXAS fi ~ COUNTY OF HARRIS fi BEFORE ME, the undersigned authority, on this day persoually appeared U. Ray Reid. who, being first duly sworn, stated that he is an authoriud representative of and is entitled to make this affidavit on behalf of Entex, and that he has read the foregoing Original Answer and Plea in Abatement and the facts asserted in the foregoing Original Answer and Plea in Abatement are within his personal knowledge and are true and correct. A.~~ Q Q~ U. ay Reid . Sworn to and subscribed before me the ,'~ day o~l-' 1998. c ~tl~ Notary P lie in and for the C5 StateofTE X AS '1......'1 H ,..,: 9 .... . . . .' "'IS ..... "11l~.. . . LI. "r, :':':. 'I ..~t. ~ ~.:.n i rIDlSAM\TEMJ'\TEMP l'IOUSTON\7969.50.UI 5 -:. e e. [i ,~ ;1. !,:i ~;.~j ;.: .. /. O"./'Ii:: l,,:-t. r.' Plaintiff No. 313PJG97 \I~~::~:~Y CEJ::rt: 9 IN THE DISTRIC~:~9~~f~~',:.~~!~.:~~~~;~;;::~~~:;~, 9 9 9 9 9 BRAZORIA COUNTY, TEXAS 9 9 9 9 9 239TH JUDICIAL DISTRICT ~ CITY OF PEARLAND v. ENTEX, A DIVISION OF NORAM ENERGY CORP. and NORAM ENERGY CORP. Defendants. SeCoND . , ~AMENDED MOTION TO TRANSFER VENUE; ALTERNATIVELY, MOTION TO STRIKE; AND, SUBJECT THERETO, ORIGINAL ANSWER, COUNTERCLAIM, AND CLASS ACIlON OPPOSITION TO CITY OF PEARLAND'S PETITION AND MOTION FOR CLASS CERTIFICA nON MAY IT PLEASE THE COURT: In the particulars that follow, Entex, a division .of NorAm Energy Corporation. and NorAm Energy Corporation (collectively "Entex") object to venue over the City . ..1 . of Pearla;nd, Texas ("Pearland") for this case in Brazoria County, Texas; move to transfer venue to Harris County, Texas; alternatively, move to strike; and, subject to and without waiving said objection and motion, answer and cOWlterclaim to Pearland's petition and motion for class certification in this case, an in the folloWing particulars: e e MOTION TO TRANSFER VENUE OR. ALTERNATIVELY. TO STRIKE In the particulars that follow, Entex moves to transfer or, alternatively, to strike: 1. Pursuant to TEX. CIV. PRAC. & REM CODE ("TCPRC") 9 15,.003, Pearland must affirmatively establish venue. It. has not and cannot. 2. Entex denies that venue as to Pearland for this case is proper in Brazoria Co~ty, Texas, and denies any and, all veI:\ue facts. that t;night be inferre~ from Pearland's petition to support venue in Brazoria County. ~ 3. No basis exists mandating or permitting venue for Pearland in Brazoria County, Texas, for this case. Entex has never maintained a principal office in Brazoria County. Neither all nor a substantial part of the alleged events or omissions giving rise to any claim by Pearland occurred in Brazoria County. No other mandatory or permissive venue exception applies to exempt this case from the general venue rules of TCPRC 9 15. 4. TCPRC 9 15.002 provides that, except as otherwise specifically provided, all lawsuits shall be brought: (1) in the county in which all or a substantial part of the events or omissions giving rise to the claims occurred; (2) in the county of defendant's residence at the time the cause of action occurred if the defendant is a natural person; (3) in the county of the defendant's principal office in this state, if the defendant is not a natural person; or (4Hf (1), (2), and (3) do not apply, in the county in which the plaintiff resided at the time of the accrual of the cause of action. 5. The county in which all or a substantial part of Pearland's alleged events or omissions occ~red is Harris County, Texas, not in Brazoria County. 2 . e Management and admini~trative decisions on franchise payments and pipeline operations are made in Harris County. Franchise payment calculations are performed in Harris County. Franchise payment checks are prepared in Harris County. Literally, no relevant decisions by Entex on franchise payments are made outside Harris County. Thus, under TCPRC ~ IS.002(a)(l) venue lies in Harris County, Texas, not in Brazoria County. 6. Entex is not a natural person, and at all material times Entex has its principal office in Harris County, T~xas, and not in Brazoria County;. Thus, under TCPRC ~ IS.002(a)2, 3, and' 4 venue lies in Harris County, Texas, not in Brazoria County. 7. TePRe 9 15.002(a) applies and establishes and requires venue for this action in Harris County, Texas. 8. Alternatively, Entex moves to transfer the case to Harris County, Texas, pursuant to TCPRC ~ IS.002(b). The convenience of the parties and the interests of justice require a transfer. Harris County is a proper venue; mainte~ance of the action in Brazoria County would w.ork a hardship and injustice on Entex; the balance of interests favors a transfer to Harris County; and the transfer would not work an injustice to any other party. 9. Because, under the mandatory and permissive venue provisions of TCPRC Chapter 15, Brazoria County, Texas, is not a proper county for this action; because venue in Harris County, Texas, is proper; and because the convenience of the parties and the interest.s of justice will be best served by a transfer to Harris 3 e e County; pursuant to TCPRC 9 15.063, Entex moves to transfer the action to a district court in Harris County, Texas, or, in the alternative, moves to strike Pearland's '" ...1 petition. 10. Entex opposes class certification in this matter. If a class is certified, however, based on TCPRC 9 15.002 and 15.003 and for. the reasons above stated, E~tex opposes ve~ue in Brazoria County for the .class and each individual member . , . . . . of the class and reserves the right to supplement this Motion to T~ansfer Venue . regarding such class members, mo~t of which are not located in Brazoria County, if and when any class is certified and formed, or regarding any other plaintiff joined subsequently to this litigation. PLEA TO THE JURISDICTION AND MOTION TO DISMISS OR ABATE Subject to its Motion to Transfer or to Strike, and continuing.to insist on same, in the particulars that follow, Entex pleas to the jurisdistion and moves to dismiss or abate: . 11. Pearland's ~nlY ~f action ~ this case, indeed Pearland's express City Council Resolution on the matter, limits the case specifically and only to "a petition for a court-supervised audit of Entex." Pearland's cO,ntract of representation with its lawyers limits' their authority only to "the' actions necessary. . . to compel and conduct an audit of Entex's records fo~ the City." ~ 12. Pearland.Qees not sue, and by specific city council resolution Pearland is precluded from suing, for any relief beyond a request for an audit of Entex records. 4 e e Pearland's own affirmative and limiting city council resolution, as well as the only ~ action:~n its petition, precludes any action'for damages, for declaratory judgment, for an accounting, or for any other relief re~ognizable by this Court. 13. By ordinance and by city charter provision, Pearland has open access to Entex's records that are relevant to the City's right of regulation and the right to . . review and audit those records. Pearland has taken no action under its ordinance or its city charter powers to' request at undertake an audit of relevant Entex records. Pearland has neither asked for nor been refused such an audit by Entex. 14. Entex has d,irected a letter to Pearland's counsel,. attached and incorporated as Exhibit.A, that confirms Pearland's right of audit and offers Pearland an audit, without the need for a lawsuit. Although Pearland's City Manager knows about the Entex letter, no effort has been made by Pearland to proceed with an audit. ~.~ 15. --ate Pearland Fditiun ,1"t;;J n~t present a case or controversy for district court consideration under Texas law. This Court has no jurisdiction to proceed wit9J..L . ~.h-tJ ~ ~ rn.. lJLJ Pearland's abstract request. No justiciable controversy ish'resente~ for determination. Accordingly, Entex moves for an immediate disrrtissal or abatement of the case. ANSWER Subject to its Motion to Transfer or to Strike, continuing to i~Ji~~, ~ and incorporating the jurisdictional plea that Pearland does not ~le:dJt ~ju~tic-ia~e 5 e e case or controversy for determination by this Court, pursuant to Tex.- R. Civ. P. 92, . Entex enters a general denial to Pearland's petition, and in further specific answer to the petition pleads more specifically as follows: 16. In 1961, Pearland granted to United Gas Corporation a broad franchise to conduct within and through Peadand a natural. gas business and ~ particular to utilize Pearl and's public ways to acco~odate system facilities so that it could convey and transport na!:Ural gas into, out of, and through Pearland for distribution and sale for any and all purposes td'persons within Pearland and for any other use beyon~ and outside the City. For years, Entex succeeded to and operated under this United Gas francltis~. In May 1986, the United Gas franchise was replaced by ,., ... Pearland Ordinance No. 508, a franchise directed to Entex, which continued the grant of broad operating. rights for Entex within Pearland public ways. The two herein described franchises are referred to collectively as "the' Pearland-Entex Franchise." 17. The current term of the Pearland-Entex Franchise is thirty years, extending through the middle of the year 2116. 18. Pearland has without complaint administered and enforced the Pearland-Entex Franchise and a number. of similar ordinances for many years. and it has accepted very large sUms of money and all of the other benefits -- at the responsibility and under the supervision and direction of many administrators, mayors, city council members, and city attorneys. 6 e e 19. Beginning in 1995 and '96, a series of lawsuits were filed against other gas and electric utilities raising numerous issues of franchise authority and., franchise payment obligations that had never before been raised in the entire history of either the Pearland-Entex Franchise or with regard to similar franchise arrangements going back over fifty years with other ga.s and electric utilities. The Pearland city fathers had never .even hinted at such claims. Indeed, these claims were never in the first instance raised by any responsible dti official' anyWhere. . Instead, they appear to have originaJed with lawyers soliciting cities to retain them and suggesting the prosecution of these claims. ,20. In complete disregard and derogation of over tiurty-six years of history with the Pearland-Entex Franchise, and without a complaint during all that time, Pearland for the first time now apparently seeks to broaden the revenue base for franchise calculations beyond the clear provisions of its own franchise ordinances. Until now, Pearland seemed content with Enh:?x franchise payments. Indeed, if the payments had been greater i~ amount, the increased cost would have been passed, through to Pearland citizens in. the {orm of higher rates, and Pearland historically . appeared satisfied with the balance of both what it received and what in turn Entex pas~ed on to its Pearland gas customers. Pearland now seems wrongfully to want retroactively to upset that balance. This the law cannot and does not permit. 21. Entex by contrast continues to read and apply the Pearland-Entex Franchise using the plain meaning of its unambiguous words: (a) from 1961 to mid- '86, to require franchise payments limited to a percentage of only the dollars Entex 7 e e -,: received from "the sale of gas' to consumers for residential, commercial, and industrial purposes; and (b) from mid-'86 forward, to require payments limited to a percentage of only the dollars received from "the sale of gas to residential, commercial, and industrial customers. 22. Withou,t a hint of complaint, the Pea~land-Entex F~~nchise historically has been administered, ,and payments have been made and accepted by Pearland, . , "just the way Entex reads the oi.-d..iitance. The pot~ntial for economic harm to Entex from an effort by Pearland to ef{ect a turnaround of these long-standing payment practices, unless immediate indemnity or rate pass-through relief is permitted, under doctrines of ratification, waiver, estoppel, limitations, and laches, precludes such newly devised Pearland payment positions. 23. The Pearland petition speaks about a conspiracy by Entex "by way of private agreements with others'; to deprive Pearland of franchise payments. There are no such agreements. They simply do not exist, and there is no basis for a charge that they do. 24. Pearland also plead:; that Entex has contracted with an affiliate to transport the affiliate's gas to customers inside city limits. Entex has and has never had any such agreement with anyone affecting any transportation or other business whatsoever within Pearland. .Pearland simply has. no standing to assert such a 1. claim, and its City Manager in sworn deposition testimony has admitted as ~uch. 8 e e 25. The Pearland petition in...~arat' "1,1. Il.~ seems \0 lmply, although for good reason Pearland is unwilling flatly to assert, that Enlex has exceeded its authority to use Pearland public ways and that Entex operations in Pearland are somehow "unauthorized, unlawful or ultra vires." Again, the Pearland City Manager's sworn deposition testimony guts the suggestion of this pleading. Entex reads the Pearland-Entex Franchise, agai~ relying on the clear words of the ordinances and on tirunterrupted and accepted historical practice, to permit Entex to use its facilities in Pearland to cpnvey, transport, sell, and deliv~~ natural gas into, out of, and through Pearl and for any use inside, beyond, or outside the city limits, with the right to connect to others." This is the only way that an efficient and , . economical system for the ratepayers can be operated. No activity by Entex in Pearland exceeds its ordinance authority. 26. Texas law requires that cities with original regulatory jurisdiction affirmatively keep themselves fully informed on all aspects of Entex's franchise payment practices and operations within or through public rights of way. To the extent that Pearland alleges tha~ it or other cities have not kept themselves so informed, and to the extent that' Pearland or other cities have been informed but took no action to protect or define their rights or objections regarding Entex's practices, by its and their own failures under the law, Pearland and such other cities have placed Entex in the untenable position where it can"not now go back in time to find and back-bill customers of the past for the underpayments that are now being 9 ..~ ...1 . e claimed. Any such claim of urtderpayment under such circumstimces is precluded by law and equity. 27. Pearland's claims are barred and/or limited, in whole or in part, by ".. ..1 laches, li~itations, ratification, waiver, estoppel, contributory negligence, accord and sa.tisfaction, and/or settlement and release. 28. Peailand's claims are barred and/or limited, in whole or in part, by the . ". . express terms of the ,applicable Peariand-Entex Franchise and/or by the course of . conduct by the parties: ~ 29. Pearland's claims, if any, for una~thorized uses are barred and/or limited, in whole or in part, by Pearla~d's acquiescence in such uses and/or its failure to demand that E~tex stop said uses, if any. 30. Pearland has failed to mitigate its damages, if any. 31. Entex is entitled to offsets and credits against any underpayments to Pearland by virtue of any overpayments or benefits conferred that exceed franchise payment obligations. . COUNTERCLAIM Subject to its motion to transfer or to strike and continuing to insist on same, and subject to its .plea to the jurisdiction, Entex counterclaims as follows: 32. This counterclaim is brought to seek a declaration of court that the Pearland suit for an audit and the Pearland claims of franchise violations have no 10 -- e merit and to recover attorneys' fees and costs for having to take this action to put an ~nd to what under the law are totally frivolous charges. 33. Entex counterc;iaims for a declaration of court that its reading of and performances under the Pearland-Entex Franchise are and have been ,c~rrect and that historical payment practices. under the franchises satisfy all payment obligations. 34. Entex counterclaims for a declaration of court that, for and in .. "'consideration of the payments specific~lly provided for by the Pearland-Entex .Fra~chise, and without other or greater payment obligation, Entex may utilize PearlanQ public ways for its facilities as a part of its overall system to convey, transport, sell, and deliver gas, for itself or for others, inside, outside, or through Pearland, for any and every use. 35. Entex counterclaims under Chapter 37 of the Texas Civil Practice and Remedies Code for a construction and interpretation of the franchise payment and authority provisions of the Pearland-Entex Franchise to comport with: (a) the clear and unambiguous words of those proVisions; (b) the parties' long-standing and accepted customs, practices, franchise interpretations, and courses of conduct; and . I (c) the understandings, interpretations, practices, customs, and accepta!nces by' cities and by the utility industry. 36. Pursuant to and under TCPRe ~ 37.009, Entex counterclaims for its costs and reasonable attorney's fees herein expended. 11 e e 37. An interpretation of the Pearland-Entex Franchise to require payments on dollars received by Entex for or from anything besides, (i) for 1961 through mid- '. '86, the sale of gas to consumers for residential, conunercial, and industrial proposes within the City, excluding governtnent sales, and (ii) for mid-'86 forward, the sale of gas to residential, commercial, and industrial customers, would materially impact Entex's rate structure ~~d customer charges. Rates will need to be" increased to accommodate the franchise interpretations that Pearland "advances. 38. Entex's rights and raiations with its customers, its rates, and its rate determinations with and under the regulation of cities and the Railroad Commission of Texas are materially impacted by the franchise interpretations that Pearland now purports to assert, interpretations that differ from or conflict with the '.. ...1 parties' current and past courses of conduct. 39. Under Texas statutes and Texas Railroad Commission and mrmicipal rules, regulations, and practices, franchise payments or any other payments for "the use of rights of way are reasonable and necessary operating expenses of Entex. Such " . expenses are recovered and recov.erable in and through the rates that Entex charges for its gas sales. 40. Accordingly, Entex counterclaims for a determination that, 1.f Pearland is to collect from Entex for additional alleged payments for the past, or for new payment theories for the future, Pearland shall in turn indemnify and reimburse Entex for any such collections or, alternatively, that Entex is entiU:ed to an !. immediate rate surcharge to recover any such collections. 12 e e 41. Entex counterclai~s also for any offsets or credits against any alleged underpayments by virtue of overpayments and benefits exceeding payment obligations. CLASS ACTION OPPOSITION Subject to its Motion to Transfer or, alternatively, to strike, and continuing to insist on sam.e, and subject to its' plea .to jurisdicti~n, in the particulars that follow, . Entex objects to Pearland's Motion for Class Certifi.cation:i1_ J ~'_._. _ _ _ _ _ I- ~ . fl\.o- ~ 10- ,IkJJL. ~ ~ ~..A,NI- 0'1. D-rv 42. Pearl and haslre y er :med fef a etass actiOR-r Its petition contains no class ~ action allegations and seeks only individual relief. ~ ~ .. . 43. This suit is not properly maintainable as a class action under Texas law. The defined class is not so numerous as to make joinder of individual plaintiffs impracticable. The individual members of the purported class are easily identified and each have the resources, legal counsel, and capacities to prosecute an individual action on their own, if they deem it appropriate. There are few questions of law or fact common to the purported c1a:>s, and individual issues in the case predomin~te. The claims of the representative parties are not typical of the claims of the purported "0. ..1 class; each purported class member will have uniquely individual issues. and sensitivities that do not lend themselves to class action treatment. Pearland does not, will not, and cannot fairly or adequately serve in a representative capacity to protect the inter~sts of the purported class. Pearland's counsel are disqualified to act as class counsel, and they will not fairly or adequately protect class interests. 13 e e 44. The matters raised by the request.for class certification in this case are uniquely local and individual self-governance issues, for management by the governing bodies respectively of ,each municipality that has a franchise with Entex. A class action is a totally inappropriate and unmanageable procedure to address these inherently local and political issues and cannot provide for or assure required local gov~rnment deci~ion-making. 45. No munic~pality has the power to delegate to a class action lawsuit or to another city in a class action the authority, responsibility~ or right to administer, regulate or enforce its local franchises. 46. Part of Pearland's class action motion apparently rests on claims th~t . . Entex is a trespasser on local rights of way of the municipalities that it serves. No cause of action on such a claim can arise without a specific demand having first been made by a city to cease and desist the claimed unauthorized use of a right of way. A municipal demand, any decision to make such a demand, that a particular right of way use is to cease, can only be made by local city government. It cannot be made by a class action representative party. So, no class action for such claims can arise without proof that each class member has first joined individually to demand that an alleged trespass or unauthQrized use .cease. 47. Lawyers have broadly advertised their services, appeared before city councils, and otherwise did what they could to sign up cities so they could represent them individually in these kinds of claims. They failed to sign up more than a .. ,.. handful of clients. Having confronted the reality that individual cities are not 14 e e " .-1 interested, the lawyers have turned' to the class action device to achieve indirectly what they could not get.directly. If individual cities, approached individually, do . not want these lawyers or claims to proceed, it is entirely inappropriate for the Court now to let this matter proceed in the form of a class action. 48. The similar Houston. Lighting & Power. Company class action experience in Harris County, Texas, prove~ that certification of a Class here is . , . unmanageable and is not the superior vehicle to deal with these issues. There, eighty-five cities were class meml1ers. Over 40% opted out, and, of those that remained in, only a small faction did so as a result of affirmative city council consideration and vote. Obviously, the opt-out class mechanism of Texas Rule 42 .will result mostly in non-action by cities, rather than required affi.rmative local government consideration and authorization. WHEREFORE, PREMISES CONSIDERED, Entex respectfully requests (i) that the Court transfer this case to Harris County, Texas, or, in the alterriative, strike Pearland's petition; (ii) that the Court grant Entex's plea to the jurisdiction and motion to dismiss or abate; (Hi) that the appropriate court hear and deny Pearland's motion to certify a class action; and (iv) that, upon full trial and hearing, Entex have judgment in accordance with the law and the facts, and that it have such. other and . further relief, both general and special, at law and in equity, unto which it may show itself justly entitled. 15 . '" ..1 - Respect lytt;(Jf~ ct:2 (/ . B. Daryl Bristow State Bar No. 03020000 Michael M. Wilson State Bar No. 21704800 Bristow Hackerman Wilson & Peterson, P.c. 1111 Bagby, Suite 1900 'Houston, Texas 77002 Telephone: (713) 652-9600 Facsimile: (713) 652-9400 ~ J. Clifford Gunter III State Bar No. 08627000 Carrin Patman State Bar No. 15572500 Andrew Edison State Bar No. 00790629 John Edtnonds State Bar No. 00789758 Bracewell & Patterson, L.L.P. 711 Louisiana Street, Suite 2900 South Tower Pennzoil Place Houston, Texas 77002 Telephone: (713) 223-2900 Facsimile: (713) 221-1212 James W. Bradford, Jr. State Bar No. 02820000 .. 221 N Velasco St Angleton, Texas 77516-1566 Telephone: (409) 849-8888 Facsimile: (409) 849-3345 Diana Marshall State Bar No. 13025500 Schech ter & Marshall L. L.P. 1111 Bagby, Suite 1950 Houston, Texas 77002 Telephone: (713) 655-0300 Facsimile: (713) 655-0130 16 . Mr. Benjamin L. Hall, III O'Quinn & Laminack 2300 Lyric Centre Building 440 Louisiana Houston, Texas 77002 . ..1 - ~ 1\, 17 '" !NIB e George C. Hepburn, III Vice President and General Counsel May 14, 1998 Knox W. Askins City Attorney for La Porte PO Box 1218 LaPorte, TX 77572-1218 RE: City of Pear/and v. Entex. a division of NorAm Energy Corp., et al; No. 3131 * J097; 'In the 239th Judicial District Court of Brazoria County, Texas Dear Mr. Askins: This is a follow-up to my May 6th letter. Plaintiffs attorney mailed his class notice last week, and city officials are already calling Entex asking how they may opt out of this lawsuit. When contacted about these matters, our people are suggesting that the officials call their city attorneys. Whatever choice your clients make, we believe it is essential that the they obtain your counsel before taking any action. Other defendants in similar litigation have told any proffered opt out replies may be rigorously challenged. A~y defect in the authorization, fonn or timing of the reply may be used to block an opt out decision, thus maintaining the city's membership in the class. If your clients decide to opt out, you may find the attached draft "Resolution" helpful. The court's deadline for posting the opt out "Request for Exclusion" (also attached) is August I, 1998. Entex believes that the class lawyers' theory that "gross receipts" should include sales taxes for purposes of computing franchise fees to be collected and paid by utilities will not prevail. However, as I mentioned in my earlier letter, a city that opts out risks nothing: I. A city that opts out is not bound by the outcome of the litigation. 2. Entex commits that upon resolution of the suit, Entex will offer each opt out city the opportunity to receive what it would have received had it elected to stay in the class. 3. An opt out city may independently evaluate local effects, look at local economic development issues and concerns, and accept or reject any newly detennined franchise payment interpretation, obligation and recovery. Again, thank you for your consideration, and please feel free to contact me at any time with questions or needs you may have in this matter. Very truly yours, ~q/I ~ attachments : .....1\ <;mith Street. P. O. Box 2628. Houston, Texas 77252-2628.713/654-5535. FAX 713/654-5549 :j . e Knox W. Askins Attachment to Letter Dated: May 14, 1998 ATTACHMENTS: 1. Draft "Re$olution" 2. "Request.for Exclusion" NOTE: According to our records, you represent the following city or cities: . La Porte If our information is in any way incorrect, please contact the office of George C. Hepburn, Vice President and General Counsel for Entex, a division of NorAm Energy Corp., located at 1600 Smith, Room 1194, Houston, Texas 77002, telephone (713) 654-5535 and facsimile (713) 654- 5549. .- ~ e . RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF LA PORTE TEXAS, ESTABLISHING A POLICY WITH . REGARD TO CERTAIN CLASS ACTION LITIGATION . INVOLVING CITY FRANCHISES WITH ENTEX, A DIVISION OF NORAM ENERGY CORP AUTHORZING AND DIRECTING THE CITY ATTORNEY TO TAKE CERTAIN ACTIONS TO PROTECT THE SPECIAL INTERESTS OF THE CITY IN SUCH LITIGATION; MAKING FINDINGS AND PROVIDING SEVERABILITY. WHERE~S, litigation involving certain public utility franchises and similar ordinances is now pending in a lawsuit styled City of Pearland v. Entex, a division of NorAm Energy Corp., et al; No. 3131*J097; In the 239th Judicial District Court of Brazoria County, Texas (the "Lawsuit"); a.n.d WHEREAS, the interests of the City of La Porte (the "City") are separate and distinct from the interests of the other municipal corporations, municipalities, cities, towns and villages that are sought to be included in the claSs of plaintiffs in the Lawsuit; and, WHEREAS, the City does not wish to be a class participant in the Lawsuit; and, WHEREAS, the City Attorney of the City, and no other attorney or firm of attorneys, represents the interests of the City in this matter; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LA PORTE, TEXAS; Section 1. That the City Council of the City finds and declares that it is the policy of the City not to participate as a member of any class of plaintiffs in the Lawsuit, or any similar Lawsuit that is filed without the express, written authority ofthe City Council ofthe City. The City desires to be excluded from any such class on whose behalf the Lawsuit is being maintained and hereby elects to opt out and be excluded from the class, with full knowledge of the consequences of such actions. Section 2. That the City Attorney of the City is hereby authorized and directed to act affirmatively, in the manner that he deems to be in the best interests ofthe City, to remove the City from the class of plaintiffs in the Lawsuit or any similar lawsuit in which the City Council has not otherwise expressly authorized the City's participation. The City Attorney is hereby designated as the Authorized Representative for such purposes, including the filing and execution of any Exclusion Request in the Lawsuit. e e CAUSE NO. 313 1 *JG97 CITY OF PEARL AND, INDIVIDUALLY, ~ IN THE DISTRICT COURT OF AND ON BEHALF OF OTHER ~ SIMILARLY SITUATED ENTITIES ~ Plaintiff. fi fi VS. fi BRAZORIA COUNTY, TEXAS fi ENTEX, A DIVISION OF ~ NORAM ENERGY CORP. and fi NORAM ENERGY CORP., fi Defendants. ~ 239TH JUDICIAL DISTRICT In Re: ENTEX Franchise Fee Class Action REQUEST FOR EXCLUSION The undersigned has read the notice of class action dated April 22, 1998 and does NOT wish to remain a member of the Plaintiff class certified in the case The City of Pearland as Rule 42 Class Representative, on Behalf of Itself and Other Similarly Situated Entities v. Entex, A Division of NorAm Energy Corporation and NorAm Energy Corporation. Date: Typed Name of City Typed Address of City Typed City, State and Zip If you want to exclude yourself from the class, you must complete and return this fonn by mailing certified mail, return receipt requested, postmarked on or before August 1, 1998 to, Lynn Klement PO Box 1744 . Angleton, Texas 77516-1744 Signed Name Typed Name , Authorized City Representative IF YOUR CITY CHO(>SES TO REMAIN IN THE CLASS, YOU DO NOT HAVE TO SEND IN TmS FORM. e . RECEIVED CITY OF LA PORTE . PUBLIC WORKS DEPARTMENT , JUN 1 6 1998 CITY SECRETARY'S OFFICE Memo To: Knox Askins, City Attorney From: Steve Gillett, Director of Public Works cc: Mar:tha Gillett, City Secretary Date: 06/16/98 Re: Ordinance Request - Contract for Sewer Rehabilitation Attached please find a copy of the agenda request for the award of a contract to provide Sewer rehabilitation services. The base bid identifies the known work to be performed, ,which is used as the basis. for bid award. The Additional work provides unit prices for a variety of work that could come up in the coming year, without identifying quantities. This provides for unit prices under a one-year contract, to be authorized ~s needed. Please prepare an ordinance authorizing the City Manager to execute this agreement with Horseshoe Construction Inc. in the amount of $119,812 for the base bid amount. This contract will be considered by Council at the June 22, 1998 meeting. Please forward the ,ordinance to the City Secretary. . Page 1 1______________ l ~IIIIPS =-- ........... r. -"'''''- .........,... nIDI ,..f1IU1IUJ. ,..713111.. e\ e , .- ~ .1tC."._ fl ~~r~ _;-...-..~!I~a...ou...-~-o-Oo~n;.odaio..~~~o~~~ - ~. - n. I ., " , . t. i ! , SA V FOREST MASTER PLANNED COMMUNITY LA PORTE. TEXAS --- '. I e' C IT Y OUR I e OUR VlisnON I I which includes an indoor swimming, pool, gymnasium, weight room, racquet- ball courts, and a state-of-the-art facility dedicated to meet senior cilizen activities. e\come lO La Porte, I Texas, a City dedicated to preparing for tomon"ow by planning today. Our direction-has been charted by the adoption of a Airport Master Plan, Comprehensi~'e Plan, Zoning Ordinance, abd a Bayfront Master Plan. Through thes~ efforts, our City has set a fresh course for economic growth and development.. 1:' Over the past 10 years, lhe ~City ~ laid the groUlldwork for its futJre by ~evel- . t oping many of the best ameniti~ tQ be found in the Galveston Ba; Area I' T~~ ~ f, result of our efforts inc1ude-i..~e ~ay 'i:,: 1\ ' ,. l I Forest Golf Course,~lS ~9Ie, rSOO \ yard championshirOi~lUr~e; :whi~h is . 'I in La Porte. one of the premip- municipaI fa~ilities ~. \ . 1i . 'I C d' , . L-. ..1 I believe the qty 'ivould provide an III exas; Lltt e e ar Bayou Pailk IS i ii i :.' I . . d f I ' 1,1 . t~:I' e.xcellent hon"\e (OT a number of new compnse 0 near y 50 acres oqparkland '.'f . , di", .' [I". 'J';' h \. retail businesses, \Pcluding a supermarket, ~ ':l~!1,1)"g,recreauona !ac~1Ue~ sue:;' ','_ : ' . . . _ ~:;. ...,.,... . 13,1.' :/ I ~ - ,. shopp(rig~ent~lis'~nd new'.fiill service as t~ms co,\~.-:S?ftb.!l!l-~el~"~lwJilve ;,',': ~,; ;:&,.\':-....":,..,... '. [.. d':' ,', '. .' .:~' ::....: ~ ~' ": franchise reS~1!f.ap.tS.l: also. feel tHe City poo., an ;n.atU'~tra~.: .. ::' " J r ': i >.'-.::..:-...~O:"'-l.-::;;:,:;.:;...:.+-;~;.,- : . t ., ' :.. ,~,' .:'., " ,/":1" ;",~' :-: 'iscapabL~Psupe..omngarnaj()rhoteJ ". .. _ l't. . ~~......; ~~~il1~ ..:~ .:J~:; "":I"........-tI~~....r~;.~ :,~ r':"~:'~ . '~': ~ '. Sylvan Beath Pavilicin"on;r-Pii:~isM~Ba~'~;'I: ..,l!na.cbf1venl:iq~~enter. All ofthese',b~~ ,.'_' ,~. .r......t........~-;::~.~r;r~. (.~'!'i~J.~.' l '.....". ~ '.~ .. " ..~ , 0ff~a 'u~i!lue-s~ttirig for:b~,!?in~ meet~ : ".;; 'Iie1;ses ~otild hefwelc~*,-ed and:el1lb~ce~ .irigs~ba~~~~ts, alld ieceptibp.k~ Th~City ':.: '~ by: the.'~itiiens an~ ~~si.~~s ;tC?m~~n~t~ ' of~~ponekecreatioli 'an<ii=i~~ Center; ,:', of J,.a' P~~te, ,". ' , '4,":. ': ~'.,: i:' .". . -, ;q: ..'. i. .' ,,~.::i I;.:~. . a.341000~~~.foot::healtp.~~~i.lity. :~.::;;{, -.,:~' ? ;' " ! . ,~_ , I . I I Current plans and programs are address- , - ing economic developinent opportunities, infrastructure, improved hOUSing stock, and community enrichment. I, I As the ,City prepares for the 21st Century, it is my goal to strategically and systematically improve arid enhance aLl aspects of the qualily of lifea~ailable I in La Porte. The City's commitment to working with business and industry is creating an exceptional business climate .., I :to 1 I I I - i I, 1 I' .' I:., I I I:: .... \1 i 4. " ". : . .. .- " '. " . :L "'f . 'r.~ . . to '; .11.... ..~. . '1 " , , . .. I.. ;....;~ . ".'1. .. .:.. " ," ,: .,:. , ~ ,~ ; I : ;: . . ~., . ;1: ,r',j" J ~"-~~":~ '".," ~ .~. " . ,''' , ~ .1" ., ~ .- '~... ....:.:.: ?"'I~.~.,:~:.'7,:::, .1' '" .:....'~ ,f~... 'l'- ~+: > .~ '" ":' '~~ ' . ...-:......' H ',:,,~,. : ~ <~},'.t: .'.", .~. -' . \,T _~~" .... ~ ~,..\!.'---~.e .,_~:.~ ..,. .it' M", "a t'~- .~ ' , t' -j,:' J'~:" " ...... .w!;.. It . t, .: ~-=, or. :~ ~~ ~.. :'. . ::. .0."4" .... -."-' ~. .,'t ' ,.,. .~.'; .....5 -!". .' 70 La Porte - Bayshore Chamber Magazine I. ... These commitments are helping to make La Porte one of the most dynamic cities of the Texas Gulf Coast. I invite you to visit our City and see for )'ourself the outstanding opportunities that e.xist for your business and y~ur famil)~ My door is alwa)'s open and my staff is waiting to pro\,ide you with the service you deserve. I I I ! Robert T. Herrera City Manager , . ' . ~;,~ , ::'1 ~~: '::;:'~ ; l , ~ ...:." I I I I I I I I I e e June 11, 1998 To: The City Council City of La Porte, Texas Subject: Preliminary information and documentation preparatory to a workshop for the IIiaster planned community of Bay Forest, including the financing under State Law, Cpapter 311 of Texas State Legislature known as a Tax Increment Re- Development Zone or T .I.R.Z Financing. This package is being respectfully submitted to you for your information and study. We are hereby requesting a workshop be scheduled for the first council meeting in July. At this workshop we shall provide the experts to answer any and all questions you may have. Enclosed: you will find letters from the La Porte Independent School District and Harris County, plus the House of Representatives and the State Senate indicating each of them is in favor of this project and await the request from the City of La Porte to join with them in the formation of the T.I.R.Z. . . A copy of this package has been furnished staff members and it is also requested they formulate their respective questions as well. - - Fred Westegren . Bay Forest, Ltd, L.L.P. 281-471-5325 Edward H. Cooke Forest Holdings, Ltd., L.L.P. 281-461-9881 I I I I I I I I I e e 1Jjap jf orest - I I I I I = I I I I I I I I I . . - - . - ~ .' e e City of La Porte Es~abli~hfd 1892 . . .' . '. e. . .. . :'. ~ '.~ ..,If . '.- ~-: . . . . November 4.1.997 .. .. ~. .' 0; . 00. . ...... .. .... . '. Mr. Irving Phillips. FAIA 4409 Mt. Vernon Houston, Texas 77006 Dear Mr. Phillips, .'1 . , .:..:" ,,": ~ '.:: . ':-..' .'.~: :..: ... ;,:- ?~~ ~~~~;.: .."". ," \.~.~:t~:.: '..;~ ::;;/. .:".: ~ ',. ..:' .. SUBJECT: GENERAL PLAN OF BAY FOREST '. , ::; :':(\~f&;~. . '. . . .~ .' This' letter is to acknowledge the' receipt of the sketch plan SUbmi.tte~..' '..:~.:':.~.' to our department for Bay Forest, a master planned community. We:.....:~ ~.~.:.;.. appreciate the opportunity to review Say Forest. and are iatis.f:.-e~ :,:.:,: :"::". with' your attention to detail. ',~ \. .:: '... ..... .... . The' layout of the 25+ acres of parkland dedication, shown as 9 hOi~S'" ....: of golf. the placement of 450 residential' Single fam;'ly lots, and' the:.~~.~" ...>> gene..,1 commercial along H".'Y' 146 are acceptable as a Sketch plan,:~.", ::.< Please note that this proposed development is zoned Planned U."n'if': '.::....::; Development (PUO) which allows for a variety of mix.ed uses with:'~:((~f>';:." < und~rlying land-use being largely Residential Single Family (R1). Tnl$'.':" ..':;: type of development will ultimately have' to be approved by the:.. .':'.~.':. Planning and Zoning Commission and City Council.' . '.;.:~ ~~;:: There are five areas of concern that should be addressed during your :'./ ":~/~ General Plan submittal: · - .:. :::':" . . (1) The Park land dedication n1ay not meet the minimum acreage ,.;,' .' .':. ,requirements (10010 of d.veJopment) and the (9 holes ,of Golf as ,scaled are 90 to 110 yards - there would need 10 be 3 holes at . . approximately 175 yards and 1 at 200 yards). I I I I I I I I I I I e e -2- ~o~'cmt tf 04, \~'J I (2) Identification of the CommerciaVResidential buil,:fings located at the northern most property line Of your development will be important in gaining maximum support for the projt!ct. (3) Drainage and Detention of the total developrnent should be included within the general plan. (4) A. development agreement (i.e Woodlands Corporation _ Subdivision) identifing and creating a unifying tt"~eme throughout the master planned community needs to be submitted with the General Plan and; (5) The two commercial buildings located at the southern most property boundary along Highway 146 may be inconsistent with proper planning principals. ... . We welcome your submission of a General Plan for Bay Forest, a master planned community, in accordance with OUf Oevelopment .Ordinance #1444. As you know,' we would very muctl like to see this plan succeed and hope that you will proceed with a General Plan submission. . - Sincecely I . r\...- :~ , I J~- '.,/ ~ r} \i )~~ Guy. nkin OirectQr of Planning . CC~ Oeborah W1lmoro, Chief Building Official Doug Knuel)~er, P.E.. City Engineer ~ I I I I I I I I I I . . e e TABLE OF CONTENTS 1. Letters of Recommendation and Support II. Letters from Property Owners. III. Property Ownership & Zoning Breakdown IV. Outline of Development and Benefits to the City of La Porte. V. Coastal Securities - Funding Review VI. T.I.R.Z. Law - Chapter 311, Texas State Legislature VII. T.I.R.Z. in Action. I I I I I I I I I I e e I. LETTERS OF RECOMMENDATION AND SUPPORT - - Letters, etc.: A. La Porte Independent School District B. Harris County c . Texas Senate - District 11 D. Texas House of Representatives - District 129 E. Bayshore National Bank I I I I I I I I I I "~,~~,,~ \ \ I .1-7--':"'/,~ '- / ~;~~ l! Porte Independent S~lOol District EXCELLENCE. . . ~ LaPorte ISD tradition John E. Sawyer, Ed. D. Superintendent of Schools June3,l998 BOARD OF TRUSTEES Bill Bentley President Rachel H. Hampton Vice President Mike McLaughlin Secretary Henrietta AUeJl Cleo Davison Charlie G. Perry GordOIl Westmoreland Trustees Mr. Fred Westergren P.O. Box 610 ' La Porte, TX 77572-0610 Dear Mr. Westergren: As promised, here is my statement concerning the , potential Tax Increment Redevelopment Zone (TIRZ) project that you have discussed with me and which had some press coverage in the Bayshore Sun. As you know, any such agreement must eventually have approval by the La Porte Independent School District's ~oard of Trustees; however, after many discussions with Board members on all sorts of issues, I believe I can safely say that our Board has always had the best interests of our students, patrons, and taxpayers (in that order) as their primary focus. ii . Based on my current understanding of the project, I think I can assume that such a development would be beneficial for our community in a variety of ways. Certainly, I personally (and I have no reason to doubt that the Board would agree), offer my support for any such revitalizing and economic development opportunity. As we have also discussed, I fully support the concept of the TIRZ, so long as La Porte ISO loses no revenue from such an arrangement. The City of La Porte's endorsement would mean a great deal, as well. In short, so long as we are not less than revenue neutral (actual, nQ1 valuation... remember, we are recaptured!). I would certainly support such a project to our Board of Trustees. . Sawyer, Ed.D. perintendent ' /tN pc: Board of Trustees, La Porte ISO Mr. Robert Herrera, City Manager, City of La Porte 301 East Fairmont Parkway La Porte, Texas 77571 Public Information Office (281) 842-2690 Fax (281) 842-2694 Superintendent's Office (281) 842-2551 Business Office (281) 842-2175 InstNction Department (281) 842-2552 Personnel Services (281) 842-2556 I I I I TEXAS 4tOUSE OF REPRE&:NTATIVES CAPITOL OFFICE P.O. Box 2910 Auml\:, TEXAS 78768-2910 (512)-463-0734 FAX (512) 463-5896 DISTRICT 129 1350 NASA ROAD ONE, #212 HOUSTON, TEXAS 77058-3165 (713) 333-1350 FAX (713) 335-9101 Mum JACKSON . . I I I I Ju~e 3, 1998 Mr. Fred Westeigren P. O. Box 610 La Porte, Texas 77572 Reference: Development Project! TIRZ Dear Mr. Westergren, . . I was pleased to hear that you and a group of individuals are working to possibly form a Tax Increment Redevelopment Zone in the City of La Porte for further development of residential and commercial areas. . . I would like to take this opportunity to give my support for you~ venture and wish you the best in your endeavors. I believe that planned development for currently undeveloped areas will benefit not only the city of La Porte but all of Southeast Harris County. Please do not hesitate to contact me if I may be of assistance. ~~ Mike Jackson Texas House of Representatives - Distri<!t 129 o COMMITTEES: ENVIRONMEll/TAI. REGULATION, VICE CHAIRMAN. ENERGY REsoURCES I" I I I I I I. .. I I. I. e e P.O. BOX 12068 . CAPITOL BUILDING AUSTIN, TEXAS 78711 512/463-0111 mD: 1-800-735-2989 DISTRICT OFFICES: 1109 FAIRMONT PARKWAY PASADENA. TEXAS 77504 713/94800111 . DISTRICT 11 PORTIONS OF HARRIS, BRAZORIA & GALVESTON COUNTIES Committees: JERRY P ATIERSON STATE SENATOR VETERAN AFFAIRS & MIUTARY INSTALU\TlONS, Chair CRIMINAL JUSTICE ECONOMIC DEVELOPMENT HEALTH & HUMAN SERVICES 305 21st STREET, SUITE 248 GALVESTON, TEXAS 77550 4091763-4696 May 21, 1998 l\1r. Fred Westergren P.o. Box 610 La Porte, Texas 77572 RE: Development ProjectITIRZ Dear Mr. Wes~~gren: , I want to take this opportunity to give my endorsement for your development venture in La Porte. I believe the city will benefit from this worthwhile project and that the Tax Increment Redevelopment Zone is an importan~ tool for cities that want to attract business enterprise. Please call my office if I can be.of~er assistance to you. If you wish, please share this letter of support with the Mayor and Counsel ~embers of La Porte. . . - Best regards, ':0 =.. . @ I I I I I I I I I I It is apparent from the materials you provided that there has been substantial groundwork undertaken as to the feasibility and organization of a TRIZ for the La Porte ~d Southeast Harris County markets. I Accordingly, ifBayshore National Bank, or I personally, may be offurther assistance in your continuing efforts to see this project to fruition, please do not hesitate to call upon us at your convenience. I~~ I L.D. Wright I I I e e ,...i., B~'ISHORE 7<'..., ~, national BANK LD. Wright Chief Executive Officer June 15, 1998 Mr. Fred Westergren, P.O. Box 610 La Porte, Texas 77572-0610 Dear Fred, It was a pleasure visiting with you regarding the Tax Increment Redevelopment Zone (TIRZ) project as it pertains to future development in La Porte. As a banker, I am somewhat familiar' with these projects and the substantial benefits they have produced for other areas, not only in Texas, but throughout the United States. When one talks of development today, it is critical that our government entities, both from an administration, and tax incentive standpoint, work closely with developers. Even a cursory review of the regions and communities that have been substantially successful in the development of their economies will prove this fact to be tirue. I also thought you might enjoy reviewing this past Sunday's article on League Citys' incentives. LDW/jr . . - iiiii . 1001 Highway 146 South La Porte, TX 77571 (281) 471-4400 9841 Spencer Highway La Porte, TX 77571 (281) 471-4400 5960 Fairmont Parkway 2329 North Main Pasadena, TX 77505 (281) 471-4400 Liberty, Texas 77575 (409) 336-6403 2929 Nasa Road One 200 South College Seabrook, Texas 77586 (281) 326-2433 Cleveland, Texas 77327 (281) 592-4626 I I I I I I I I I I e e ,. II. LETTERS FROM PROPERTY OWNERS - . - - I I I I I I I I I I e e I, Edward H. Cooke, Managing Partner of Forest Holding, Ltd, L.L.P., acting in conjunction with the other property owners within the proposed T.I.F. boundary, a project which is in the City ofla Porte, Texas, comprising some 262 acres of land and known as Bay Forest, a Master Planned Community, fully intend to join with the other property owners to petition the City of La Porte to establish a "Tax Increment Finance Zone." ~~~ Forest Holding, Ltd., L.L.P. . . . - Tef. (713) 658-04/t2 . e Fl1C (713) W-B70t I I I I I I I I I ~eem_ 6 CO. Inc. INVESTMENT, P~O'ERTIE' May 13, 1998 17 F. Canington Weems. acting in conjunction with the other property owners within the proposed T.lF, boundary, a project which is in the City of La Porte. Texas, comprising I somp. 262 acres of land and known as Bay Forest) a Master Planned Community, fully intend to join with -the other property owners to petition the City of La Porte: to establish a "Tax Increment Finance Zonen provided that the Planning and Zoning Commission agrees with and adopts the land uses in the sketch plan of ''Bay Forest)7 prepared by Irving Phillips) and provided that al) the other property owners within the 262 acres join in with me in filing this petition, and provided the La Porte In~ependeDt School District and the county of Harris agree to join and be equally affected by the fonnation of the T.I.F. . - 1001 Fennln Sue.' Sufte "./to Houston. T.....s 77002-6712 I I I I I I I I e e fil. PROPERTY OWNERSHIP AND ZONING BREAKDOWN . . - I I I I I I I I I I e e TAX INCREMENT FINANCING ACT TEXAS STATE LEGISLATURE CHAPTER 311, REVISED THRU 9-1-1991 A proposal to the City of La Porte, Texas to fonn a Tax Increment Zone (T.I.F.) within the City of La Porte comprising approximately 262.751 acres ofland designated as Area 5, A, C, & 0 of Exhibit 1', attached hereto. The land ,contained herein is owned by the following individuals and partnerships: Area 5, Block "0" Parcel # 1 16.0 acres Parcel #2 1.35 acres , Parcel #3 90.006 acres TOTAL ACREAGE 262.751 Area 5, Block "A" Parcel # 1 Parcel #2 Parcel #3 Parcel #4 Area 5, Block "c" Parcel #7 Parcel #8 Parcel #9 Parcel # 10 Parcel #11 Total Weems' family . II . - 19.169 acres 20.0 acres 41. 992 acres . 14.707 acres 16.586 acres 8.754 acres 9.075 acres 20.119 acres 4.973 acres 155.375 acres F. Carrington Weems Benjamin F. Weems Betty Weems Westfeldt F. Carrington Weems Benjamin F. Weems Benjamin F. Weems F. Carrington Weems F, Carrington Weems F. Carrington Weems Bayou Forest Apartments Forest Holdings, Ltd. Forest Holdings, Ltd. Parcels above owned by F. Carrington Weems total 68.043 acres and parcels managed by Edward H. Cooke total 91.466 acres and are 65% of the total acreage proposed to be within the T.lF. Boundary.'. Refer to Section 3 I 1.005 (a) (5). Mr. Irving Phillips, a Land Planner and Architect, has been employed by Cooke and Weems to create a sketch plan for the total acreage within the T. I.F. boundary. The sketch plan has been completed and submitted to the City of La Porte, Department of Planning and Zoning. A study period has ensued and a letter from Mr. Rankin, Director of Planning and Zoning, has been received inviting Mr. Phillips to apply for a General Plan. Pending further refinement and negotiations with Planning & Zoning, a preliminary breakdown follows. Ed Cooke I e e I UNIT BREAKDOWN PER IRVING PHILLIPS I Weems I Parcell Apartments 10 acres 200 units 19.169 acres ,ingle family 9.169 acres 33 units I Parcel 2 single family 19.30 acres 63 units 20 acres park .70 acres I Parcel 3 golf course 7.54 acres 41.992 acres single family 16.452 47 units ,eneral commercial 18.0 acres I Parcel 4 single family .82 acres 2 units 14.707 acres senior housing 5.85 acres 60 units I rec. center park 2.397 golf course 5.64 I Parcels 7-8 golf course 5.22 acres 25.34 acres general commercial 4.40 acres single family 15.72 acres 54 units I Parcel 9 golf course 4.54 acres 9.075 acres commercial office 4.535 acres I Parcel 10 single family 7.25 acres 23 units 20.119 acres townhouses 6.81 acres 102 units I commercial office 4.44 acres park 1.619 acres Parcel II single family 4.973 acres 19 units I 4.973 acres . Cooke #1 general commercial 1.35 acres - Cooke #2 garden apt. 16.00 acres 272 units - Coofle #3 s~ngle family 52.256 acres 156 units - Cooke acres parkllakes/green 22.75 acres - 107.356 patio/garden 15.0 acres 90 units - Combined Acreage = 262.731 I I I I I I I I I I I I I I I I I I e Review: Single family Patio garden Senior homes Townhoines Apartments Multi family General commercial Commercial office Golf course Parks, lakes, green . - Weems Cooke 155.375 acres 107.356 acres 262.731 acres 125.940 acres 15.0 acres 5.85 acres 6.81 acres 16.00 acres 10.00 acres 23.75 acres 8.975 acres 22.94 acres 27.466 acres 262.731 acres e 399 units 90 units 60 units 102 units 651 units 272 units I I I I I I I I I I I i e e PRELIMINARY WNING The following breakdown is taken from the Masterplan presented by Irving Phillips, Architect. Weems R-l R-2 R-3 Golf Park Gen. Totals Parcel Comd. #1 9.169 10.00 19.169 #2 19.30 .70 20.00 #3 16.452 7.54 18.00 41. 992 #4 .82 5.85* 5.64 2.397 14.707 #7 & #8 15.72 5.22 4.40 25.34 #9 4.54 4.535 9.075 #10 7.25 6.81 ** 1.619 4.44 20.119 #11 4.973 4.973 Cooke 52.256 15.00 16.00 22.75 1.35 107.356 Parcel or TOTALS 125.94 15.00 38.66 22.94 . 27.466 32.725 262.731 * Seniors * * Townhouses - I I I I I I I I I I I I I I iii 1! I ,. EXI~ Ls ~ T ~. ".(~p.~TAnON 1 \.[JD[J l J I ir~" :' ,.r-DAR {~I"""1I: " . ,.'- ',[. ~II~:' r~;": : i F'ARV \~I 2 ~--\'-;h .., .n' .,,/ \ co L.S.#3 ""':, N.T.S. EXIST. WATER (lY ,LINE P.) ni\'r' F,'R=-"- . ~:. :LF COUR~'E ~ v= ~@G~ .~IMl~ ~ILW. ----' : i i I ,........... BAY FOR:-~7 ....").,.. --. ,.,.....Li CCUR~:: :! : ~ . . . ,.L DEVELOPMENT NOTEC" J. 1.) COLF C AVAI!J\8~~RSE LOTS -SITE 11' HICH_R1SEOFJlsRS POTEIIllAL ~~R~~lOOKi~~'tJPIIENr CAlVESTON 8/<.'( 2.) E5~ PROXIMITY ro AMENITIES -8/<.Y FOR~ -UTllE CEDAR GOlF coup.~ -RECREAno 8/<.YOU P.ARK -WAVE i'OO~/F1TNESS eElllER -NAIlJRE -SYLVAN TRAIL -SYLVAN BEACH PARK -HOUSTOH ~CHH rFISHINC PIER a.UB 3.) NEARBY 146 &: FAJRCESS TO S.H MONT PK'N": 4.) EASY AC CLEAR Ji€S TO NASA - .5.) CITY unun AS SHOWN ~sEL~:LAeLE: -SANITARY ~EOU~P=t.4 ACcoll~~ffE'AS TO INC OE\'El.OPIIENTS LARGER -SEE 'OUTH COllF!!EHEN~ PORTE PlAN (ENCLOSEDrnUlIES 6.) FLOOD Z THROUGHg~~ XfflES FENA F J.R,lI EA " F.I.R.ll. i4e~=1j044OC 7.) DENTENTION REOUIRC"D MAY BE DRAIN,\.GE gg~DTr?o~~IST. AREA NO. 5 SCHEMATIC AREA PLAN I I e e Weem.s & Co., Inc. INVESTMENT PROPERTIES (713) 658-0442 IARCELS ADJACENT TO BAY FOREST GOLF COURSE LA PORTE, TEXAS I t I I co ~ """ I ~ ~ :I: I (!) - :I: W ~ I ~ CIJ I . . LITTLE CEDAR BAYOU PARK PARCEL 1 ' 19.169 Acres PARCEL 2 20 Acres. ~'. .:.;. .' . '... . '" : '. .... . -.'. .." ~:-,;"3=t:~,~:::,i:,~;">h>::<;':':';:S ,:: -:41~992Aaes ,."": ,-:;:::.":.>~: .::',PARCEL 4 ' '?'~:;J""';::~~;'Z~;:'] ';~4.~~r~ ',. . ',:'. : .~ . .:":'. '-:". "..:'. .:. . .......:.. '. . :: : WHARTON WEEMS BLVD. ';'" :,..:" .),..:,;..~;::::..\t''':<:':'''''::~~~~L':/'''''''': '. .':'PARCEL'S:.' '.' . .,., ...'. . .:':,.. ..., :-.:.. :",~':'''', 16.586Aaes. .'..:. ...F~',. ,'..-8.754 Acres,. ... :..:' :::'...',;'~...,,.:'. :". ":. " ".::-'--: '".::'.::- .- ..:':' .:' . "1.' . to' ~ ~ C <C o a: m :I: I- ::) o CIJ .. ' 4 I I 'I I I I I I I I I I I . - iii - . ._..~ . .. .. WI III . ~, ... '~ .. WI .- . .- . ... - .-.... ~i .. . .. . " .. . ~, -..a .. .. -.. w -.., . - .. .... "e-' I , .\ WI .. I: I' ~ . ,- I I I r ! I ! I , I II .... .., , r-. ~ - ..,. 1 e .. , . ...J U ... PHCll'iE il('. :'! :94,20024 ~ EP. 22 1';~7: 'l-~:08MM F I ri I J ii, r : ' ~ ; I \ T 1.1 ~ q ~J \,'........_,__~-j-~~ . "; , J ::.;,'" ! i i I ! ! i ' ::Lj ! ; I >I' ~ . '1.-' ::r - . II 'IA 1. _ _[ '" ""~ - I ._~. c 'j"-"",ri ~ .,. .... "'7 , 'i'" l 1 ' ! '!l L.J~ L"r i : .13~ I 't'_;'=I' ~ ~ '.~" [ -l~~. 1-""-.,..:'~;'" .'~ ~~t'i ~r,c-d..; ". ,,~ ......., -.. ... .-. - .......--. ra - ;''fII\ t- I 1"""-rV'I-~ ~ _ .-......-. .-. _ , I ..... '. ~~; ::. Ui r; '!....J r...~:q; ~ ~ ~ . J , \ ~IWA.. .l..Jv I 7 !i'\~ - ~f I!:! I .' ,,<--/ i".,,~ "i:'~ l.'~ ~. . -.,;, ~~~.~. r. ~ . =017. " , . .~.4" ~..~...i./ . V '... 'kl'T~ ..f......' . ~r)p" A roo .. "'''~.....:j '....-.:.-. 'J.lJJ' ': j!l I....,. . -"""".iI'-. -....... ~',...,~ ! I -~ ,'r-~TIL 'r:;E:-:jj~:' ~jft::;~r., J Ii ' ~. '-'~, . 'If.. 1l'-~ ~"~....~. )'P"\\ JV I I ~ ~ . ~ ' -..L..... ..L ~.... ..... -... )l"'~, ~7J, I! ' '" ~. -.I t j -Q'Cft _ r~ -_ ~~ r ~ .I / ~; ~::_:;~ A · t = o~ 1Ftrrt:iTI61i ! / :' '\.Jr~_V' ~-~~a! bC;~~l /r/ 7 \ "--J ~t- ~ ~ .{JjCL-:C.:.t, I" :/ · - . ~ If ~ .. ~/ I '( - 10. II.... ~ '" c::J / / ./, . .~~~l "--t rr--1~~ ~ .J //: .LI .. .,' or . .: ~L...-.u..-J, 1 /!=..,7 rti1~ ;... --fSJl ~o ] ~ J ft:::::lII l 7/;/. : 1/ -: · '-" L-; .. '~:::ril . ~ ~ I " I / / r ft\ ~ iI" \ ......~; C.. J~. J o~ / /'j · [ <PI T G", r'lIl' 1"--- . r... __~ '>iii![ 711 / / ' !':T&t.'"Tv~-, ~, 'i - (I' ~W~. ~)HI/,'/ : -((.,..--'- '>,r'- -~...... ~ Vi 4//; ". - " ) .~, ?- 0j~' II'//Ivl ,\ f \'f) \ j~~c;""'- ~ rj .1/! . ~'\}) L\, \ J/~~-~~jc. fl/II " .--/~ I; I I I I iii . FROM : I p~ i l J i PS.'LJi 1 d Des, gr. I ~ --.. .., _.. .. . e - - - I I I I I I I I I I I I I I I e e IV. OUTLINE OF DEVELOPMENT AND BENEFITS TO THE CITY OF LA PORTE - I I I I I I I I I I I I I - . . I - e e OUTLINE FOR LA PORTE DEVELOPMENT "A 262 Acre Master Planned Community of Bay Forest" Within the confines of this outline, extensive dependence is made upon "the Economic Development Strategies Report," January 1989, done by Peat, Marwick, Main & Company and the "Bay Front Master Plan," August 1993, done by Mitchell, Carlson & Associates, Inc., SLA Studio Land, Inc. ,and Carter .Burgess, Inc. These specific reports deal with the opportunities of economic development for the entire City. They pinpoint immediate and future opportunities and, to a great extent, give a blueprint to redevelopment within the City especially ''The Bay Front Master Plan." Both reports lay the foundation for development and redevelopment to occur thru go04 City planning, the inventorying of City assets, streets, roads and utilities, and, most important, the creation of a climate that encourages public and private partnerships to accomplish the goals set forth in these studies. In 1993, Mr. Cooke purchased 107 acres in south La Porte with the view to developing residential housing. To this end, a 16 acre parcel has been zoned for a two phase apartment project at the southeast comer of McCabe Road for 272 units. This project will be 1,2 and 3 bedroom units and rents will be at market rate. A garden walk-up project with amenities such as swimming pool, exercise facilities, and computer lounge. It is believed this is only the second apartment project in La Porte over the past 20 years. The engineering and architectural working drawings have been completed and the financing is in place. Only a building pennit from the City is necessary to begin this project. During the past two years, Mr. Cooke has had many opportunities to visit with the Weems' family who owns an additional 155 acres north of Mr. Cooke's property. One year ago, Cooke and Weems came together with an agreement to propose a 262 acre Master Planned community called "Bay Forest." To this end, Mr. Irving Phillips was employed as the Land Plan Architect to create an economically feasible design and to submit this plan to the City's Planning and Zoning Department. This first step has been accomplished and we are now requested to apply fonnally for a "General Plan" approval. This Master Plan, as submitted, contains extensive residential ( 651 units) in four categories, i.e, single family, patio garden homes, town houses, and seniors housing, another 10 acre apartment site for future, 32.75 acres of retail and office commercial and some 50 acres of open green and park land envisioned by the Land Planner to contain a par 3 executive golf course. In both reports to the City done in 1989 and 1993, it was stressed that this land, both adjacent and south of the existing golf course, was prime for residential subdivision. Also from the Strategies Report of 1989 reference is made to development of shopping or the lack of retail shopping within the City. Reference here is to 111-3 and 111-4 of the report. Looking to Exhibit "0", we find 40 shopping centers within a 10-mile ring from 6th Street and Main Street. Of the 40 I I I I I I I I I I I I I I e e Outline for La Porte Redevelopment page 2. centers only one is in the City of La Porte, the Sylvan Plaza on South Broadway with a Minimax Super Market as the anchor. Since this 1989 report, a new Kroger market has relocated at Hwy. 146 and Fainnont Parkway and has closed the old market further east. To date, no other'retail trade center has come to La Porte. Noting the recommendations presented in both reports, the Land Planner presented his Master Plan to contain 32.75 acres for both retail and office commercial along Hwy. 146 and upon the major comer of Wharton Weems Blvd. This comer is approximately the center of the proposed Bay Forest. It is a 100 foot R.O.W. and the main entrance to the golf course and residential areas of south La Porte. We envision a motel and restaurant on one comer and retail shopping on the other, with a major department store as an anchor. Additionally, we would solicit a four screen movie theater within this parcel as no theater exists within the City, population of30,OOO+. The above visions are based certainly upon need, secondly conformance to both studies done in 1989 and again in 1993 and upon a reliance that the City will be pro development as stated by extensive interviews perfonned under the 1989 report. To this end, Mr. Cooke is proposing to form a development group that will ask the City of La Porte to form a Tax Increment Redevelopment Zone (TIRZ) whose boundary will be 262 acres of the Cooke and Weems' land. Upon the submission of the "sketch" Master Plan for Bay Forest, all involved property owners signed a statement they wished this project to go forward in 1998, a document furnished by La Porte P & Z for all concerned. Under Chapter 311 of the Texas State Legislature, the three taxing authorities, the School, the County and the City must agree to the fonnation ofa TIRZ. Mr. Fred Westegren, a local La Porte businessman, and member of the development group, along with Mr. Cooke have met twice with the School District and with a representative from the County. Just on a preliminary study basis, neither the School District nor the County appeared to have any objections to our forming a TIRZ. They await the formal request from the City to form the TIRZ and they will officially submit the proposal to their Board of Trustees and Commissioners. Mr. Cooke has been in contact with Mr. 1. C. Howell of Coastal Securities and they have developed a prefuninary flow chart based upon the architectural land plan as to the different uses of the land and a proposed schedule of absorption for housing and the eventual construction of commercial. The build out of the Master Plan covers eight years and produces $92,220,000 in improvements. From this amount, $20,270,000 of bonds could be issued with an excess of $12,958,394 in revenues. Also note from this flow chart, $21,110,394 has been channeled to "low income housing." Looking a~ the $12,958,394 of excess revenue, two major items, the sewer and drainage must come from this excess. This amounts to an estimated $2,300,000. Additionally, the utilization of land, additional land, dedicated to the City must be purchased or condemned and purchased from the Weems' family. Also other recreational amenities, yet to be negotiated, I I I I I I I I I I I I I I I . e. e Outline for La Porte Redevelopment Page 3. could come from this "excess." Even with these uses there remains an excess of$10,158,394. Certainly, additional amounts will come from this excess, administration of the TIRZ, studies performed by the Board, etc. ' Whatever the "excess" is, i.e., $5,000,000 to $7,000,000 as an example, this "excess" gives the TIRZ the opportumty to initiate Phase II of the TIRZ. Under Chapter 311, a TIRZ may extend its boundaries and take in additional land. .Following the study done in 1993 <'The Bay Front Master Plan," that area from Fairmont Parkway to Wharton Weems Blvd. and from the water to the golf course has extensive redevelopment potential. This area contains the possible marina site, shops, restaurants, a promenade along the water, and canal housing, probably the most concentrated redevelopment within the study. The core of this area is Broadway or <<Old Hwy. 146." It has come to our attention that State highway funds will become available for the improvement of this section of roadway making it a four lane road, a new bridge over Little Cedar Bayou with extensive upgrades to curb, gutter and storm drains. Hopefully within the next three to four years. Within a Phase II concept, utilizing the "excess" from Phase I, marrying these funds with State highway improvement funds and then utilizing the $21,000,000 oflow income housing fund, it would appear that this could be all that is necessary to initiate the Bay Front Master Plan. This outline, as presented, is only a vision. So were the studies of 1989 and 1993. I believe the differepce now to be excellent economic conditions, the TIRZ law, and a willing developer with a vested interest. Ed Cooke I I I I I I I I I I I I I 2. 3. 4. 5. 6. 8. 9. - . . - e e BENEFITS TO THE CITY OF LA PORTE WITH THE T.LR.Z. PROJECT 1. Major economic boost to economic development $92,000,000 over 10 years. Major employer of construction workers. Major buyer of construction materials. Typical breakdown would be: 5001'0 labor = $46,000,000 payroll 50% material = $46,000,000 Direct Investment of$20,000,000 into low income housing throughout the City for low income housing and infrastructure in older low income neighborhoods. Pay back of $1,300,000 Phase I of main sewer trunk line and new lift station on McCabe Rd. and 146. Installation of $1,000,000 of drainage channeled for land surrounding Wharton Weems Blvd. 7. No bond election. No liability for bonds, as no bonds can be issued until taxable assets are built and on the tax rolls to a third party. Opportunity to implen:tent Phase I of the Bay Front Master Plan. 10. Opportunity to expand the T.I.RZ. boundary to include all of the Bay Front Master Plan as outlined in 1993 study. Thusly, the project becomes $200 - $300,000,000. T.I.F. financing becomes the vehicle to redevelop all of the City's waterfront with marina, promenade, canal housing, shopping, restaurants and rehabilitation of deteriorated housing along with new housing. 11. Major surplus funds become available thru this 1'1 T.I.RZ. program, $13,000,000. These funds may be used, if the T.I.RZ. Board elects to expand the T.I.R.Z.. boundary, to include additional redevelopment areas. Bay Front Master Plan, Fairmont to Wharton Weems, the water to the golf course. 12. The largest dollar benefit to the City of La Porte is $53,498,920. $15,246,882 from the County and $38,252,038 from La Porte ISO. These two taxing authorities have indicated their willingness to participate in the formation of a T .I.R.Z. to the benefit of the City of La Porte. I I I I I I I I I I e e Benefits to the City of La Porte with a T.l.R.Z. Projett Page 2. 13. A shopping center, not a mall, but one designed, on 18 acres specifically for a City the size of La Porte and on the major thoroughfare of La Porte with 650 residential units next door, plus all of the residences in south La Porte and Shoreacres, all of this within two miles. Ed Cooke . . . . - I I I I I I I I I I I I e e v. COASTAL SECURITIES - FUNDING REVIEW . - - I e ......OASTAL SECURITIES j I I I I I I I e MEMORANDUM To: Mr. Fred Westegren From: J.C. Howell Date: March 25, 1998 Re: Tax Increment Financing Districts As you are aware, Tax Increment Reinvestment Zones, also known as Tax Increment Financing Districts ("TIP Districts''), have become a prominent tool to assist in economic development. There are TIF Districts being formed everywhere and are being used to finance any imaginable type of project. TIP' Districts are financing projects ranging from residential developments to shopping centers. While each. TIP is unique in the scope of its projects, they all are designed for one thing: to promote economic growth and development. . . One of the reasons TIP District fmancing has become so popular is that the entire community benefits from economic development. The political entities that enter into agree~ents with developers in a TIF District understand the benefits of growth and development within their communities and ar~ williIig to provide incentives to assist with that development. In addition, the TIF District structure can provide certain other direct benefits to the participants, such as the requirements that 1/3 of the revenues of the TIP District must be spent on low income housing not necessarily within the.boundaries of the TIF District. ;; TIF Districts may be created for a variety of purposes. The Lamar Terrace project in the City of Houston was created to revitalize a blighted area. Gulfgate Mall is undergoing major renovation and restructuring through the use of a TIF District. A TIF District has been formed along Richmond Avenue in' Houston to assist the business owners along that road with infrastructure development. These are a few examples of the types of projects that may benefit from a TIF District. Some of the projects that I am personally acquainted with include the Midtown Redevelopment Authority and an upscale residential development in the Baytown area The Midtown Redevelopment Authority is probably the most ambitious project of its kind to date. The area covered by this TIF Distri-ct is an economically blighted area southwest of downtown Houston. The master development plan calls for a variety of residential, commercial, and retail developments totaling over $1 billion worth of taxable value improvements. The plan calls for infrastructure and capital improvements in excess of than $200 million and the issuance of more than $50 million worth of bonds. Several residential projects are underway and the TIF District - intends to issue its first series of bonds in May of this year. 5555 SAN f"J::LII'E . SUITE 2200' HOUSTON. Tt:XAS 77056 PtJONE (713) 4.15-4300 . (800) 489-3232 . FAX (713) 435-4444 I I I I I I I I I I I I e e The developer of the Baytown TIF District is currently in negotiations with the participants over the use ofTIF District revenues and should be ready to begin construction this year. This project is anticipated to create more than $230 million in taxable improvements through the construction of nearly 1,400 homes. No bonds will be sold to finance developer reimbursements in this TIF District. Instead, the developer is obtaining private financing. The project being proposed for the La Porte area appears to be an excellent candidate for a TIF . District. The developers of the area have the opportunity to spend more on infrastructure and amenities to enhance the community than would be possible without the TIF District. The projected level of developer reimbursement is well within the projected financing capacity of the revenue stream. In some of the other projects discussed above the required level of developer reimbursement is higher per dollar of taxable improvements; therefor, the projected revenues are highly leveraged. The credit quality of any TIF District financing increases with greater coverage of debt service by the revenue stream. Based on the initial analysis, the proposed Bay Forest project should have a higher credit quality than some of the other projects currently underway, which should make financing easier. I look forward to the opportunity to be involved in this project. It appears that all parties will benefit from the project and the community as a whole will be improved. If you have any questions, call me at (713) 435-4361. - I I t:OAST AL SEClJRITIES e e FACSJMILE I DATE: March 11. 1998 ITO; Ed Cooke FAA: (281) 461-9281 I FROM: l.C. H(>>weJl PAGES (rNCLUDING COVER): 4 I MESSAGE: VOICE: (713) 435-4361 FAX: (713) 435-4561 I I I I iii - - DiUlIlleftal is (_ iat_1IioaI pr.poses Oftl, II1ld is IIClI i1IlC11dcd 11111 ua...1O tcII or IllIIicitariCl'l of".. 0Ifcr to IIay _ --''Y. II m....y providca ialanuIillll ....u.. lI__wa .. COIIICIIlIclina nlJlPfOPl'i- WYMP ClIIIIidaIIlioo. A1d1ouch.1s ~ ... ... ........ &ous _reel YJbieb C'.onraI helllv&llllllc: IdiIIIIc (ICIIII' 0' wIIic1lm: 1IIird IllI1J RIVi_). CouW doll Den ~ .. if Is -'- GI' ~_. 1114 illllaald DO& .. tellaI upuu at~. An &_-..,........ epiNou .. ........ COlltdllIlc eo..rl judpleal all at dIis dIIle nil, ...... wilh prillelllld yields. awe snbjCt1 tIl cIwl&!C willlll\ll aolk,. a>u. lU lIoc dynaaaic Uftft of'" ftIIrICl:C, lIICI'I at dtb _-.ion (~17 ...... ..w.s fO aukII illdlCIIiona CII' whoaliua.) _ ~ thlIt, wtri~ C\'a)" taIIllIIIbIc dfGft b "'* fO ptGYidc ..... iIItltmIaIiua, sl:CIa ~ ia IIUl puulOed '" CoIur.tI MId 1I1Cfll1hoald IIIlIR wUlcwr lIlWilioaal dclamiDa1IOlII of'marlcel value c=y dc:aa 1PJIlUPri.1I.. sssU.uz JIELII'E . SUITE 22lllI. HOUS&"ON, TEXAS T7~" PNt.>>Nlt1I')"JS~JOO.(1OO)4IN2'2. a:AX(7I')~'~ - - - DRAFT - - - - - La Porte Tu Increment Fin.nelne "Distrid Prqjeded lIc!.cnuu - - - III.. I. I Deb. Seriice COVC'Il&C Excess Revenues RI:\"CRU':S Available for Dd.t ScrvlClC Low Income Housing Total Revenues San Jacinto Jl College 0.11 0000 0.0000% I.. Pone ISD 1,610000 IOO.ClO~~ City of L. Porte tJ, 71~OOO 100.0006% Umis Co 0.641710 100.0000% Taxable V.ltlc of YCilI F.nding 12.'31 e e 0,0000 1.0261 1.0118 t.0107 1.001) 1.0048 1.0041 0.9996 1.0060 1.0020 0.9970 0.9993 0.9 !IS 1 0.9983 0.91178 u.9994 1,0003 0.9952 1,0012 0.9914 0.991:5 1.1693 US93 1.8424 2.6112 4.7101 7.468-1 )1.(1084 0.0001l 0.0000 0.0000 0,00 6,778.45 8,933.58 1I,79U3 8,101.19 6,714.15 7,402.18 (71S.0") 10,181.92 3,59,U2 (S,So.08) (1,20S.'lJ) (9,03lU8) (3,080.S8) (3,98lUS) (I,10s.sS) S4U2 (8.10S.58) 2,119.42 (2,99).08) (2.70S.S8) 262,919.-12 508.969.41 830,469,41 1.120.719.42 1,4)0,694.42 1.57),119.41 1,7S7,744.41 1,816,319.41 1,816,319,42 1,116,319,42 Debt SCI\"ic:e 2)7,387.50 501,981.50 819,787.50 1,113.950.00 1,411,81$.00 1,564.200.01 ],7S9.987.50 ].805.4-37.51 1.812,72S.00 1,121.862.50 1 ,8 17. 52S.00 1,82S,nO.Oo 1,819,400.00 1.820,300.00 1,811.425.00 I,SU,775 (to 1,82',025.00 1,81-4.100.00 1,819,)11.50 1.819,025.00 1,553.400.00 1,307,150.00 985,851).00 695,600.00 385,625.00 243,200.00 58.575.00 0.00 0.00 0.00 0.00 264,165.95 SIO,'21.0a 818.580.03 l,l22,OS2.89 1,415,609.RS . ,571,602,78 1.7.59,202.46 _,116,JI9.42 1,IIUI9.42 1,116,)19.42 1,II6,lI'-42 1,116.)19.42 UI6.JI9...2 1.116,JI9.42 1.816,319.42 1,816.319.42 J,316.l19.42 J,S16.lI9.42 J.SI &.3 19.42 1.116.119.42 ].816.319.42 l,S16,319.42 1,816,319.41 1,816,319.42 1.816,319.42 1,816,319.41 1,816,319.42 1,816,319.42 1,816,319.42 1,816,319.42 0.00 lll.213.98 118.966.&8 355,10.5.73 480.879,81 610,975.6' f!7',544.0S 1$1,943.91 718,422.61. 118.422.61 178,422.61 171,422.61 771.422.61 771,422,61 771.422.61 771,422.61 778.421,61 778,412,61 778.412.6J 778,422.61 778,422.&1 778,422.61 778,U2.61 778,422.61 178,422.61 718,.U.61 718,42Ul 718,422.61 778.422.61 778,422,61 778,422,61 0.00 377,379.93 729,887.26 I: I 13,61S,7S 1,602,932.70 2,OJ6,58S.S] 2,245,146.81 1,513, ]46.)7 1,"4,742,04 2,5'4,741.04 2,59",741.04 2.'94,141.04 2,594,142.04 2.594,742.04 2.594.742,04 2.S9-1,142.04 2.594.142.04 2,594,742.04 2,594,142.04 2,594.742.04 2,594.742.04 2,594,742.04 2,594,142.04- 2,594,742.04- 2,594,742.04 2,594,742.tJ4- 2,594,142.04 2,.594,142.04 2..594,141.()4 2,594,14-2.tl4 2,594,142.04 0.00 0,00 0.00 0.00 0.00 0.00 0.00 O.flO O.tJU 0.00 6.tJO 0.00 0.00 0.00 0.00 0.00 0.00 0.00 O.lIO 0.00 0,00 0.00 0.00 0.00 0,00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 20S,14,U!J 396,767.60 64J,4Sl.00 871,356.15 1,107,090.34 1.226,464.51 1,366,149.:10 1.4]0,504,90 1,410,50HO 1.410,.5001.90 1,410,5001.90 1,410.50.uO 1,410,564.90 1,4105001.90 1.410.504.90 I.....O.SO,UO 1.410,SOUO 1.-I10,S04 !Ill 1.410.504.90 1,410,SO-l.9O 1.410,5o.UO 1.410,50Ult 1,410,SDUO 1.410,5U4.90 1,410,504.90 1,410,504.90 1,410,504.90 1,410,~OUO l."10.S04.96 I." I O.SOUO 0.00 90,467.3 I 174,972.05 213,758.78 ;84,262.65 488,2IU6 538,1]7.28 602,46],40 622.021.90 622,021.90 622.023.90 612,021.90 622,023.90 622,021.90 622.023.9Q 622,013.90 622.023.90 4i21,02190 622.023.90 622.0U90 612,021,90 622,023,l)O 622,023,90 622,U2l,90 622,023.90 622,02J.90 622.U21.90 622.021.90 622,02),90 622,02),90 621,023.90 0,00 8l,768.43 158,l47.62 256,473.97 347,313.90 441.275.2] 48(,,46S.03 544,53).51 562,11),24 i62,21l.24 '62,213.24 S6t,213.2. S62.21J.24 562.213 24 562,213 24 562,213.24 561 213.201 562,2IJ.24 562,2lJ.24 562,213.2,1 562,21] ,24 S62.2 1 3.24 562,113.24 562,113.24 561.11l.U .562.213.24 562,21U4 S62,21U4 562,213.24 562,213.24 562,213.2" IlR(Jrllvanenl$ .--- ...---- 1998 0 19Y9 1 ],412,500 21100 2S.~.U,OOO 21)01 42,069.500 2i10! 541,910,000 200) 72,lS2,SOI) 2004 19,795,000 :WOS 39.320,000 200(, 92,220,000 2(101 92,220,000 2008 92.220,000 201)9 ~)2,22(),OOll 20 I i} 91,220,(ltll) 21111 92.220,000 2012 92.220,000 2013 92,220,001) 2014 fJ2,22iJ,OOO :.!(/ IS !12.12IJ,OOO 2UI6 1)2.220,000 2017 92,220,OfJO 1018 92,220.(1(10 201'1 92.220,000 2020 92,220.t10D 2021 92,2.20,000 2022 92,220.000 201l 92,220,000 :W24 92,220,000 202:'>> 92,220,000 2026 92,220,000 2027 92,220,000 2U2lJ 92,220,000 200.'1 12,958,394.3] NlItll: Ta~IIl"Clions for any Biv~n leu arc based on the pr~vious leal's taxable vallie of impro\'cment!\. Tax collections aroe lUumccl to be 9S~~ of tOIaII~l'. I'n:par.:,l by C,lalltal Secw itics i-'ilcRamc LAI'ORTlF Rundate: OJll1198 Runtime: 0 I :32 PM 36,199,087.S0 49,251.481.83 --.- --- .- 0,0(1 10,367,BlUI 21,110,3019,33 -...--... ---.- --.- 15,2.6,882.16 l6,868,911.12 38,252.037.90 --- T .'lal - - - - DRAFT - - - - fmJ"'cd rral1Cln.Yalucs oUmllrCl\'eme~ts IIIIII _ _ La Porte Tu laCRD1ea. Flaaaelal Dlstrld - I iIUlr lmwal')' ..1 20.Q3. ~alues 2002 20Q6 400 SO,OOO.OOO 120 0,800,000 100 1,000,000 2005 400 50,000,000 120 0,800.000 100 8,000,000 2004 342 42,750,000 120 10,800,000 100 8,000,000 28S 35.625,000 120 10,800,000 100 8,000.000 228 28,SOO.000 120 10,800,000 100 8,000,000 20QI 171 21.11S,000 . 80 1,200,000 66 j,280,OOO 20Qa. 114- 4,2S0,OOO 40 3,600,000 33 2,640,000 ."'29 57 7,125,000 o 125,000 90,000 Residelltial Patio Ilomes OWMomcs e o 80,000 ----..-- 68,800,000 68.800,000 6~,S50,OOO -.. S4,42S,OOO 47,300,000 ---- 1J,aSS,00o 20,490,000 .0_.- 7,125,000 Les, Exemptions (6,880,000) (6,310,000) ((.,155,000) (5,442,500) (4,730,000) (1,315,500) (2,049',000) (712,500) O.OOOIc. 61,920,000 60 4,SOO,OOO 61,920,000 .60 4,SOO.OOO --. ..-.--- ---. 48,982,500 S!.,39S.000 60 ,:.,500,000 60 4,SOO,OOO -- 42,S70,OOO 60 4,500,000 - 30,469.500 30 2,250,000 18,441,000 o o 6,4L2,SO() o o Senior 75,000 lr.s\ Exe:mptions (900,000) (900,000) (900,000) (900,000) (900,000) (450,000) o (I 20.00% e 3,600,000 15,000,000 11,700,000 - 3,600.000 lS,ooo,OOO 8,800,000 --....- ~~,600,OOO ~i.OOO,OOO ~i,800,OOO ..-. 3,600,000 15.000,000 4,800,000 ...----- 3,600,000 1,000,000 l,800,OOO - ,800,000 7,000,000 2.800,000 ..--- o 7,000,000 500,000 .--. o 7,000,000 AI'i111ments Commerci.al .-...- 89,320,000 92,220.000 7~J. 75'S.OOO 72,l82 ,SOO -_. ---.., _.-.. 13,412,500 25,941,000 42,069,SOO 56,970,000 Prepared by Coastal Securilies }-'ilenamc: LAPORTlf Rundatc: 03.'11;98 Runtime: 01:32 PM aX3ble Value "rojet'led . II .. - - - - - - - - - - - - La Parte 'fu (Rcrcmmt Fin.nc.... mlalct Tax Increment Revenge Don" r.mjUUllDeblluuslW: DRAFT 'k'w F.adillg 12.'31 Series \999 Scria 1000 S(ricl 2001 Series 2002 Serics 2000 Serin 201M Selies 2005 SerlC$ 2006 Total e e lS7,.l17.S0 501,911.50 119,111.50 1,IJl,9S0.CO 1,~II,82S.CO 1,560UtlO.00 1.1S9,9IHO 1.105.,n7,50 I,ll1.7250lJ 1,121.862.50 1,117.525.00 1,I:U,]50.0tI 1,119,.400 Of) 1,120,JlIo,on I,ll 7,-42s.clO 1.1l.S,77HR 1.125,0'25.0U 1.1'-1,200.00 1,119,312.50 1,119,025,(u} I,SS],4iJOJ'lt 1,307,350.00 915,156.00 695,600.00 38S,6J5.tI0 1~3,:!00,OO SI,S7HlIJ 0.4.10 (100 0.(10 50.300.00 54,650.00 58,615,00 57,17S,OU 56.01S.tI0 54,715.410 53,475.00 56.8S0.fJO 55,215.00 S8.6oo.lJO 56,6S0.00 59,700.00 51.415.00 5.s.UO.00 51,175.00 55,215.00 57.4175.00 S....7S0.lJO !U25.00 51,5U.l10 IUIO 0,00 0.00 114.S5UO 186.300.00 117,12S.00 18&.11$.00 119.600.00 190,OSO.00 190.17S.00 189.97$.00 119.450.00 111,600.00 111,425.00 IIS,925.~0 119,100.00 116.'25,00 IIR,12S.00 115,]75,00 116,6C!O.GO 117,I1S.GO 117,100.00 1'6,]75.00 0.00 0.011 0,00 0.00 U9,' 50,03 I 47,li5.00 1..4,4S0.I)O I 46,SlS ,00 148.215,00 I44,JOO.OO 1~6,l2S.00 147.215.00 141,000.00 1,..."50.00 141,51.5,00 141,175,00 147,850,00 147,(100.00 145,825.00 144,)25.410 14J.5t:J.(,0 145,015.00 141,nS.OO 14J.715.00 fI.OO 0.00 0.00 0.00 0.00 197.100.00 ]01,900.00 306.050.00 30t,SSO.flll 30l,725.00 3tJ',S7,HO 302:175.60 3CM,fi50.00 JOs.ns.flG JOI,450.(l0 JO 1,700. U() 301,JOO.00 305,250.00 JOJ.2nOO 305.550.00 361,90lUIO 302,600.00 302,315.00 306,1)75.&3 ](IJ.51U3 U~ 0.00 0.03 0.00 0,00 0.00 28~'.950.00 294.150.00 293,900.00 291,715.00 291.225.00 2!'4,400.oo 291,92.5.00 2!'4,1l5.00 195,675.00 191,515.00 192,UO.ClO 291,075.t10 191,])0.00 194,!J75.~O 292,615.110 294,613.00 195,650,UO 29"5.71)0.00 294,775.410 292,115.00 0.1)0 0.110 ().l.lO 0.00 0.00 0.00 0.06 ll2.I7UlI l16.6SIJ.GO ) 15,415.00 ] 11,97S.0U i16.125,OU ~ 19,3 50.011 )16,125.00 )11.17'-01) )11,675,00 118.925.(10 Jllt,525.(10 J17,47UlO 1IS.i7S.00 311,425.00 J:20,100.00 315.80MO JIS,8S0.00 ] I !).9l5 .00 311.100.00 31 fI.~OCJ.OO 0.00 G.OO G,Oo GOO 0.00 G.1I0 0,00 0.00 2.19,200.00 245,000,UO 1015,200.00 2"5.100.IIIJ 244.700.01) 2"'9,000,110 2"",700.00 2"'6,10000 :z.w,100.0O) 247,000.00 249,2(1),0:1 2U.IOO,OO 241.100.00 2,17,1(1000 247,900.00 247,4nOO(1 24&.JOO,OO 244,600.00 2.I1,JOO,OCl 24o},100,OCt 0.00 0.00 0.00 OJIO 0.00 0.00 0.00 0.00 0.110 ',57.317.51) 2/01,717.50 262,612.50 262,1S0.OQ 266,400.00 265,01500 263,462.50 261,562.50 264,375.00 166.612.S') 26'J,21S,()() 264.ClSO.OoJ 26S,4511.00 26S,Cl1S4I0 26;)15.00 2(,.f.400.00 262.900,00 265.825,00 262.881.50 164,175 00 0.00 000 0,00 0.00 0.00 0,011 0.00 0(10 0,('0 ('.CiO 1998 I !199 1001) 2001 2001 2003 2004 MOS 21)(1& 2001 20(1& 2009 2010 llJlI 2012 201J 2014 2015 2016 2017 2011 2019 :zmo lOll 2022 20U 2024 20:Z5 24126 2027 2028 2019 36,199,081.S0 1,130,90(1.0(' --.-..--.. --.- ...- .-..- 6:066,100,00 2,~6,2S0.00 3,7$5,77s.o(l 5,167,0 SO ,00 .-.-- 6)50,125.01) ---... .. ...... .-.. . 4,915,700.00 1.IIO.01llt 6.001l0'li. ~.277 18UO 3.085,0(10 5.7S00% lo.1I 20.210,0(11) 620,000 6.54100~' 2.07(1,ODO 6. SOOO".4 1,610.000 6.5000% 7,412,500 l-4S,992.91 3,340,000 6. SO(I()'~ 19.012,500 JOJ,S5Cl.96 ],210,OIlO 6.5000-,. II,lOO.SOO 29.l.47U5 ),495,000 fl. 50000.. 16,121,500 317,fiSl.9. 11,521,500 246,755.1) 13,412,500 2M.16S,!Ji Bonds Issued 11I&cICl'l R:lc IOClClllcaIAI Value InCfemclIl:d Rc\'enllc 92,220,0110 1,116,319 2,900,000 S1,IlU~ 9,525,CiOO 117,599.61 Ilunllmc' OU2 PM 031111911 1'IcpaCld by CoI5tII Sc.:urill.:s ..'ilenllllle: I.APOR'fit. Rund/'llc I I I I I I I I I I e e VI. T .I.R.Z. LAW CHAPTER 311, TEXAS STATE LEGISLATURE - . . - VI.... I J. '=1 =' ( J. -'....:;,0 DV ~~ML.. I I n~ ., -' , .' i I STATE TAXATION .. .. Title, ~Q;'U".i4'Ct to Jnh'.ritanee ta:,' ,~_:~::::'~~~~J~~~' 6 D1 Sr:U CCiv~p. ~ 1967)' 801 s.w.J. .- --- -- -- - .'-- .'_c~=' co VI' '.LAA I I . _ ~~. ~~. wU not pel'IonaDy - ~-.. bomuteitd intere.t WIll . :w.~~~~=~ !.~ ~~ e!r:,e 1n POUts_ _.: r.t\.er d9$th bat, like a Join~ __. 'Y! !!li..~t'~!ol;l. vetted betore """'l-N.1Ubject to. ~eri~nCle Wc,' --, -_r v. R&ndJe CAppo 6 Dilt. I :". c~, ,,,,;; ",,"=. I I . . . . - - e e "~'Ir.:.: : ; 'l.;' ( .. .~ . "~ '.' p',: I,' :":,: ....:.,.. ~ ' . : ".' TITLE 3. .LOCAL TAXA-TION .r ... 1 , - .. . SUBTITL:E A. GENERAL TAXING AUT~ORI~ ~ PROVISIONS CHAPTER '802. TAXATION POWERS OF MUNICIP.ALITIES SUBCHAPi'ER B.' GENERAL PROvlSIONS RELATING TO EXCISE TAXES . I 802.101. Occupation Taxes Notes of DecielotUl W'I!Z'e Dot Occupat.1otl taxea. and puning pro\'1&lon ot 'Local Govemmellf.. Cod. req\1lNd only that, to enact law or ordhla:lce i'erarding l~ or Impe81- tiolS ottax, ~orlty vote of two-thtI'da quoz:um Me ~.d not two-thlzoda ~odty vote. Divis v. CSty ot &bJnsOJl (Mp. a Dlat. 1996) 919 S.W.2d 849. rehevlJlr avmUled, error dlmild. . ..,- 1, Vote A two-tbSrda DilSorlty vote by aldlmlln of . city colSftCtl wu tIOt nqu1red to pue ord!zwlee. 8'Jtho. .. . ddni pubUc bll1clnr 1II8U'oU"'j Tax Code lee- tloa. specd1lc:alq. applicable to OCI:Upat1on taxes . Wert lnapp1lcab1l; II finanelnr mauu:es at talUI SUBTITLE B. SPECIAL' PROPERTY TAX PROVISIONS CHAPTER 811. TAX INCREMENT,FINAN~ING ACT .:. Section . . 811.0081. En~ ZoM. . $11.010. Pon1'I ind Duties or Boud of Di- ~ Seetion 811.013. CoUdon and Depollt of Tax In~ menta. . .. ,,;.. . 311.0031. Enterprise Zone Desfsnat40D of an area as an' ent&'prise zone under Chapier 2808, Governmen~ Code eo~tDtes dutJnation O~ the area as a reinv8lltment zone under this chapter without iUrther heaiJ)1 01' other procedU1"81 requirements other than thOI' proWled 1.-y Chapter 2803, Government Co,de. Amended by ~ 1996. '14th .Leg., ch. '16, f 6.95(22), 6ft. SePt. 1. 1995. Htstorical flnd'Statutol'7 NoteB 1996 Lqillatlon Act (Artlcll 6190.7, Vernon', Texu C\v1.l Stat- The 1995 amendDlent aubldtuted "Chapter 2808. atll)". ~t Code" tor "the TlIXU Ento:rpriae Zone f 811.010. Powers and Duties ot Board of Directors {SN m4in \lolume fur (0.)) (t?). The bo~ of directors of. reinvestment zone may entM Into agreements as the board conaiders nec:eBlary or convenient to implement the project plan and reinvestment zone !Dancing plan and achteve their purposes. AJ1 agreement may provide tor the regulation or restriction or the use of land by imposing conditions. restrictions. or covenants that run with the land. An agreement may dedicate revenue from the tax Increment tund to pay the costs of replaC!fng howg or area of public usembly in or out of the zone. Mi agreement may dedicate revenue from the tax increment fund to pay 8 neighborhood enterpNe ssSDcJatfon fo:' provldini l.mceB or oaming out projeC!TS authorized under Subchaptera E and G, 61 ' i.~~ .' I OCT 16 '97 ~5: 16 B!) REA!... TY A[iVS A: .,,' ., e P.l I I LOCAL TAXATION' Title 3 ltS :tAving to do with lions with \"hich the la....'. The repeal or ed. I I I . . I . . - . . ... ~ ,., :!f. 0;. '. ".J-. ::~= .,;.". ..- , ... ;,.~~. o.:i .~~.: SUBTITLE:9. SPECIAL PROPERrr'Y TAX PROVISIONS WltSTLA W Computer ABslsted Legal Research: WESJLAW supplements you. ~egal researc~ in many w~ys.. WES~W allows you to ; . update your research with the most current information I . ~ . e"pand your library With additional resources ~ .. retrieve direct history. preeedential history and parallel chatious with . the Insta.Cite service . For ~ore information on ulling 'vIi'ESTLAW to supplement .your' research, see the. WES:TUW Electronic Resear'ch Guide. wl\lch follows the Preface.' LA T l J ..... ~':' '. .: !CHAPTER 311. TAxiINCREMENT FINANyING ACT ~. . . Soctlon 311:00l. . 31<1.Q02. 311.003. 311.0031. J 1l.p04, 311.005. 311.006. 311.0C>7. 311.PoS. 311.009. 311.010. 311.blOl. 311.011. 311.fJ12. 311~13. 311;014. 3111015. 311:016. Jilj017. , . :. Short Title. Definitions. : proeed'ure' for Creating ~elnv~tmen: Zone. Enterprise Zone. Contents of Reinvestment Zone Ordinance. Criteria. for Reinvestment Zone. Restricfions on Composi:tion of Reinvestment Zone. Cha,niing :Boundaries of. Existing Zone. Powers of Municipality.. Composition of Bouct of Directors. Powers and Duties of Board of Directors. Participation of Disadvantaged Businesses in Certain Zbnes. Project and Financing ~lans. : . Determination ot Amouiu of Tax Increment. Col!ectiol1 and Depo5it of T"" Increments. Tax Increment Fund. Tax Increment Bond! and Notes. Annual R~pon. . Termination of Reinvestment Zone. . I , <?ro'B References MU~lci~al tax abatement, dest,nation of reinvestment zone. see i 312.20( . . SchOol district property value c1eterminiulon. taxable values lIff~c::ed by this chapter, see v:r.c.~ I Educatio~ Code.' ~ 11.86. : Admlnl&.tratlve Code References Comnln'ce departmen(. induStrial revenue bond program. see 10 TAC i 180.2. : 291 ,1)\..1 10 ":H .L:J.C.L .t:IL! Kt.'"1L...II l"'1uv,:;, '1 .' e . u ...............-.. ..,..-,... . - -- - -- . I 1 I 1 g 311.001 LOCAL TAXATIOS TUle 1 ~ 31 t .00 1. Short Title This chapter may be cited as the Tax Increment Financing Act. Added by Acts 1987. 70th Leg.. ch. 191. ~ 1, en. Sept. 1. 1987. H1lJtos1cal and Statutory Notes Prlot' Law.: Acts 1981. 61th Leg., Is1 C.S.. p. 45. ch. 4, t 1. . " ' Vernon'. Ann.Clv;Sla\. art. l066e. t 1. ...... . . I 311.002~ Definltlons In this chapter: (1) "Project costs" means the expenditures made or estimated to be mad~ and monetary o.bligations incurred or estimated .to be incurred by the municipality establishing a Te~nvestment zone that Ire listed in the proje::l plan as costs of public works or' public improvements in the zone. plus other costs incidental to those expenditures and obligations. "Project costs" include: (A) capital costsl including the actual costs of the acquisition and construction of public works, public improvements, new buildings, struc. tures, and fixtures: the actual costs of the acqui.sition, demolition. altera. tion, remodeling. repair.' or reconstruction of e,usting buildings. strUC- tures, and fixtures: and th.e actual costs of the acquisition of land and equipment and the clearing and grading of land; , (B) ~inancing costs. incl\?ding all interest paid to holde:-s of :evidences of indebtedness or other obligations issued to pay for project' costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations before maturity; (C) re.al property assembly costS; (D) professional sen'ice costs. including those incurred for architectur- al, planning, engineering. and legal advice and services: (E) imputed administrative co'sts, including reasonable charges for the time spent by employees of the municipality in connection with the implementation of a project plan; (F) relocation costs; (G)' organizational costs: including the costs of conducting environmen- tal impact studies or other studies. the cost of publicizing the creation of the zone, and the cost of implementing the project plan for the zone~ (H) interest before and. during construction and for one year after completion of constructio~. whether or not capitalized; (1) the cost of operating the reinvestment zone and project facilities; (J) the amount of any contributions made by the municipality frotn general revenue for the implementation of the projec;~ plan: and 292 - . ;;; - "..,} - ... t ~ - ,- 'TAX.INC] .7: Ch. 311 (K) "1':' rnunic cres.ti. .',. . zone. " (2) "F . . ....:a opment :.-~, amendI . ). (3) ") ....:. reinves ..;.. ._' (4) " .~- .. ....... Added by :'"}7 i. , t1. (1) '..&;. ,~~ .'~ conti ., ,~ conv- .;' the c 311.( . ~.... (2: .-. . .. '. or \1 . .'0 ..' ,.~~ "r prior La ..,: :.to.';. Acts l' '... :!- ~ 1. '.~ti' ~~. !J;. ~ 311 .. ,~... ~ .. ' -' (a) . .... - ':1! ct'ntig .~,- .' .. '.~ rein\'e " ..:~!: the go ,,! . occur (b) gO"er zone must .real I (i:) mun' bene hear zone than mus pali' '.' .' I ______..uu I I ,~' m(:AL TAXATIO Title . I ~Liu~ Aet. I I I Itimated to be made oe lncurred'.bv the' .listed in the p~Ojeet .: in the ~one. pluS : .. - "PI'oJec~ costs~ ' _ a.cquisidon and ~ - u._ L__!I.z:__" struc _ -- U~I&\AI".e.' ", ..' ,.;. --. demolition. altera- ..,-: buildings. struc-' .-..!_- of land ~n~ .: - J..^IJ"!...... of evidences project costs and n~ obligations because n~n;';;'~ for arcnitectur- - L L ~~!"..!"!"~! fnr the w.-..-.;.;:~-;; with the __ __~___-_~~~:- :::,,'ironmen; "-'_!_- eL._ creation of _ . ~U" - . plan for the zone: . for one year after ,. ___ _..J ~ " "... ,.: .lL t\ .:.r;: ,l.::" '....". ~;.. '.' . tf" ~:;~. t.: - and project facilities: no municipaHty from __;u~ plan: and . 'S.', e e - - - - ..'. - --- ~~ 1AX INCREMENT FINANCING ACT I 311.003 .: th. 3~1 , (K) payments made at the discretion of the governing body of the municipality that the municipality finds necessary or convenient to the creation of the zone or to the implementation'of; tne project plans for the zon~. (2) "Project plan" means the project plan ror the d;evelopment or redevel- opment of a reinvestment zone approved under this chapter, including all amendments of the plan approved as provided by. this chapter. (3) "R.einvestment zone financing plan" means the financing plan for a reinvestment %01?oe described by this chapter. : (4) "Taxing unit" has the' meaning assigned by S~ction 1.04. Added by Acts 1987. 70th Leg., ch. 191, ~ 1. eff. Sept. 1. 1987. Revilor's Note . (1) The definition of "reinvcstlnent zone financing ;pl~n" ~n the former law contained detaUed provisions I(werning the financing plan. For clarity and convenience. the substance of those provisions has been revised together with the other source law provisions relating to the same subject matter in Section 311.011 of this code. . " . (2) Throughout this chapter the term r'nuiniclpality" ;15 substituted for "ciiy Qr town." This change is made to conform to the Lo~al Oov,rnment Code. Historical and 'Statutory Notes Ac:u 1983. 68* LeS., p. 3213, ch. ~54. i 1. Vernon'a ~n.~iv.SL. art. 1066e. ~ 2. Plior Law.: Acts 1981, 67th Leg., lit C.s.. p. 45. eh. 4, ! l. . ! i 311.003. Pro~edure for Creating Relnvestm.ent Zone (a) The govc;rning body of a municipality by ordinance may designate a contiguous geographic area in the jurisdiction of. the m1.l11icipality to be a reinvestment zone to promote deveiopment or redeyelopment of the area if the governing body determines that development or r:edevelopment would not occur solely through private investment in the reaso~ably foreseeable future. . (b) Before adopting an ordinance providing for i reinvestment zone, the governing body of the municipality must prepare ~ preliminary reinvestment ~one financing plan. As soon as the plan is completed, a copy of the plan must be sent to the governing body of each taxing :unit that levies ta."(es on rea.l property in the proposed zone. . : . (c) B.efore adopting an ordinance providing for a reinvestment zone, the municipality must hold a public hearing on tbe c:r~tion of the zone and its benefits t~ the municipality and to property in th~ proposed zone. At the beau-ing 'an interested person ~ay speak for or ag,ainst the creation of the ~one. its boundaries. or tbe concept of tax increment financing. Not later than the seventh day before the dale of the heating, .notice of the hearing must be published in a newspaper having general circulation in the munici. ~~. " 293 .';". I I OCT 16 '97 15:2_-' '"' BD REA. ADVS e - 1M. I I I I I I I I ~ 311.003 LOCAL TAXATION Tide 3 (d) A municipality must provide a r~asonable opportunity for the owner of property to protest the inclusion of the property in a proposed reinvestment 7.one. ,./ (e) Not later than the 60th day before tbe date of the public hearing required by Subsection (e), the governing body of the txnmicipaUty must notify in writing the governing body of ea~h tax.ing unit that levies real ' property taxes in the proposed reinvestrnen.t zone that it intends to establish the zone. The notice must contain a description of the proposed boundaries of "1;h~_zoM.._!!'~ tentative plomi for lhe d~elopment or .!~Sll~~. ~~~~~~~~":f~~t~irl'JSi~f~~ before the date of the public .hearing if the goyerning body of each county and: school district that levies real property taxes in the proposed zone agrees to waive the requirement. > (f) A taxing unit m"y. request additionai information from the governing body of the municipaUty. The go~eming .body of the municiJ)ality shall provide the information requested to the extent practicable. In addition to the notice required by Subsection (e), the governing body of the municipality . shall make a formal presentation to: the go~erning body of each county or school district that levies real property taX~s in the proposed reinvestment zone. The presentation must include a description of the proposed bound. aries of the zone, the tentative plans for the development or redevelopment of the zone. and an estlma;e of the general impact of the proposed zone on property vaiues and tax revenues.. The governing body of the municipality shall notify each taXing unit that levies real properlY taxes in the proposed zone of each presentatlpn to be made to a caunty or school district under this subsection. Members of t.he ioverning body of each taxing unit that levies real property taxes in' the proposed ione may attend a presentation under this subsection. If agreed: to by, the County ,or school districts involved, the governing body of the municipality' may make a single presentation to more' than one county or school district governing body. . (s) Not later than the 15th day after the ,date on which the notice required by Subsection (e) is giv~nl each t~ing unit that levies real property taxes in ,the proposed reinvestment zone shall designate a representative to meet with the governing body of- the municipality tq discusS the project J)lan and the reinvestment zone financing plan and shall notify the governing body of the municipality of its des~gnation. At: an)" time after the 15th day after the date on which the notice required by SubseclioJ;). (e) bas been given to every taxing unit. the governing body of the municipalitY may call. a meeting of the representatives of the taXing units. The governing body of the municipality may call as many meetings as 1t considers necessary. Bach representative shall be notified of each meeting in advance. At the meetings the governing body of the municipality and the representatives of the other taxing units may .J. discuss the boundaries of the zone, development in the z.one, the tax incre.. ~: ment that each taxing unit will contrib~te to the tax increment fund.' the: retention by a taxing unit of a portion. of its tax. incre:nent as permitted by 294 . !!! == - P.3 TAX INCREMEN1 Cb. 311 Sec;tion 311.013. the ~he board of direct motion of the gOVI other matter relev; (h) If 8 reinvest enlarged under See the ordinance des: may permit the bo the municipality'S : operation of the z( ment ~one financi give final approva Added by Acts 1987. 71st Leg.. ch. 1137. ~ ....... ,- . :*f:: - ,.. -.-, .~ ~!~~. The 1989 amencme' Section 29(11) of d provides: "The change in lay not affect the \'alidit' de,l(nated before the Dr of a tax abatemer. extended before the c ~ 311.0031. :E Designation of Zone Act (Article of the area as a I or other proced Enterprise Zone Added by Acts 191 .. I' 311.004. e- (a) The ordin (1) describe identify with. zone; (2). create; director$ of t (3) provid( the year in ~ (4) provid. (5) assign created by a I, eCT 16 '97 15:24 SD REALTY ADVS :. e - e P.4 .--- I LOCAL TAXAno I. ~ u _ L 'rid, .i '" ~UA me: OWner of . _ _ ..s . upU:'w\4 reinvestment . .. -h~ public hearlna ,municipality mUll _:~ that levies real _ .. .' _ il1 establish ..' boundaries ~~~~.-~~~I.~.-I-I~.lI; nf .be'. .. _n.___~.__n __ . . ~._1I.!!a:- ~~ p~up~riy . ~~&AA& the 60th day" - ~ - - ~,_ I ~ VA eA\;l1 count'y inO : : .J zone agrees to : . from the governing .7 -. '-'..."--- h 11 ~ _ __no __~ un_" sa' _ In addition to -,. ....,- - ------ . . -"..-- .... Ull; m\.lnl~lpiuny _...~ each county or , reinvestment proposed bound. ~r redevelopment of . ' zone on -_ _ ihe municipaJit). ~ in the proposed ~ ~~:~-~~~~ !..!!!~~f thii .... unit' that levies .. _ _ _ _ -' __ ....L.!_ -- -.. -- u__-:: ~_:!~!~~~~ ,,&U~ :.:.. ~--~.~ involved, the ." ,,~;~~.=.~::. to more , tnf" notice required property taxes in . . ~v meet with -- <-:-:- plan and the ..... bQay of the ~:;. after the date -~_~ ig every ta.~ng .. meeting of the ihc municipalit~. WQ\i~A t'epresentath'c .: ~::;;.::. the governing & - --" - - --_!..- -.... ''aA11101S \"U.I'IoWi Il"D...~ }j.' ~, , ~ ", f" ...,..' :~.. . ~.: :" 1311.004 :.~' TAX INCREMENT FINANCING ACT \ th. 311 Section 311.013. the exclusion of particular parcels .of property from.the,zone.. the board of directors for the zone, and tax collection for the zone'. On the motion of the governing body of the municipality calling the meeting, any other matter relevant to the proposed reinvestment zone may be discussed. (b) If a reinvestment zone is designated under Section 311.005(8)(5) or enlarged under Section 3: 1.007(b). the governing body of the municipality in ,; the ordinance designating the zone or in an amendment to that ordinance E' . may permit the board of directors of the reinvestment zone to exercise any of : , the municipality's power with respect to the administration, management, and ;:. operation of the zone or the implementation of the project plan and reinvest. .:" ment zone financing plan, other than the power to issue bonds, levy taxes, or give final. approval to the project plan. . Added ~y Acts 1987. 70th Ug.. ch. 191. t 1, eff. Sept. I, 1987. Amended by Acts 1989. '1st Leg., c:h. ,1137. ~ 16. eff. Sept. 1, 1989. Historical and Statutory Notes The 1989 amendment added subaec, (h). Prior Laws: Sccvtdtlon 29(d) of the 1989 amendatory act Acts 1981, 67th l.q., lit C.S., p. 45, ch. 4, pro es: t 1. '1'he chanle In law made ~y this Act does Acta 1983, 68th LeS.. p. 3213. en. 554. ~ 1- not, affect the validity of a .relnveltment. zone Vernon's Ann.Clv.St. art. l066e ifi 3(a} 4(a) deSlllnated before the effeetlve date oE thiS Act t (f) ., or of a ,tu abltement agreement executed or o. extended before the effective date oE this Act," I 311.0031. Enterprise Zone Dcs~gn$tlon of an area as an enterprise zone under the Texas Enterprise . 'Zone Act (Article 5190.7, Vernon's Texas Civil Statutes) constitutes designation of the area as a reinvestment zone under this chapter without further hearing or other procedural requirements other than those provided by the Texas Enterprise Zone Act (Article 5190.7. Vernon's Texas Civil Statutes). Added by Acts 1989. 71st Leg., ch. 1106, i 26. eff. Aug. 28, 1989. g 311.004. Contents of Reinvestment Zone Ordinance (a) .The ordinance designating an area as a'reinvestment zone must: (1) describe the boundaries of the zone with sufficient definiteness. to identify with ordinary and reasonable certainty the territory included in the zone; (2) create a board of directors for the zone and specify the number of dir~ctors of the board as provided by Section 311.009; (3) provide that the zone take effect on January 1 of the year foiiowing the Vl'!l'IT in which the ordinance is adooted: I I r' I I - -... .' ~ -: - .'~:. "" .... , ." ,- ~ . ..... ".1, . .' . ... .- . .' , -_. _-':-11::: .. .10[.' OCT 16 '97 15:25 BD REAl ADVS e t 311.004 LOCAL TAXATION Title 3 City (or Town. as applicable) of (name of municipality)" and subsequentlv created ZOl)e5 assigned names in the same form numbered consecutively in the order of their creation; (6) establish a tax incr~ment fund for the zone; and (7) contain findings that: . (A) improvements in the zone will significantly enhance the value of all the taxable real property in the zone and will be of general benefit to the municipality: and (B) the area meets the requirements of Section 311.005. (b) For purposes of complying with Subsection (a)(7)(A), the ordinance is not required to identify the specific parcels of real property to be enhanced in value. (c) To designate a reinvestment zone under Section 311.005(a)(5), the governing body of a municipality must specify in the ordinance that .the reinvestment zone is designated under ,that section. . Added by Acts 1987. 70th Leg., ch. 191, t I, eff. Sept. I, 1987. Amended by Acts 1989. 71st Lea., ch. 1131, S 17. eff. Sept. I, 19851. HI.torical and Statutory Note. The 1989 amendment added subsec. (c). Act, 1983. 68th loti., p. 3213. ch. 554. ~ 1. Prl La Vernon's Ann.Clv.st. art. l066e. ! 4(g). or wa: Acts 1981, 67.th LeI., 1st C.S., p. 45. :h. 4, 8 1. ;' ~ 311.005. Criteria for Reinvestment Zone (a) To be designated as a reinvestment zone, an area must: (1) substantially arrest or impair the sound growth of the municipalit)' creating :the zone.' retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition 'and use because of the presence of: " ' (A) a substantial number of substandard, slum, deteriorated, or deterio- rating structures; (B) the predominance of defective or inadequate sidewalk or stree~ layout: (C) faulty lot layout in relation to size, adequaC)', accessibility, or usefulness; (D) unsanitary or unsafe conditions; (E) the deterioration of site or other improvements: (F) tax or special assessment delinquency exceeding the fair value of the land: (0) defective or unusual conditions of title; or (H) conditions that endanger life or property by fire or other cause; 296 P.5 TAX IN( Ch. 311 (2) t tion 0: .., impair ., (3) 1 "' or in I (4) : (5) . ed as; q of the perce: most locat( (b) II assisted guaran~ federal Housin Added \ 71st l.e: Aug. 22 112li )'42. 1,; 3(1 10 fr, Se lr. cc S tl s: a t. I I 'I' e e . . . TAXATION' ~., .TAX INCREMENT FINANCING ACT 1 Title 3 ';' Ch. 311 sequenti, '(2) be predominantly open and, because of obsolete platting, deteriora- .':'''''"'....~~v<:'~;' w.; tion of structures or site improvements, or other factors, substanti~lly I " ': impair or arrest the sound growth of the municipality; or :::"0 '::. (3) be in a federally assisted neW community located 1n the municipality _ " ' .; or In an .r..lmmedlately adjaccnllo a federally assisted n.... community; :___' ._ ~_~~ ;;.~!: ~: (4)' Deleted by Acts 1989, 71st Leg., ch. 1106, ~ 27; or .___!::.. .._ _to .- (5) be an area described in a petition requesting that the area be designat- 1Ol.A,'l' -=H>fZc;S7. eel as a reinveotment zo"e, If the petition Is submitted to the governing body .. . of the municipality by the owners of property constituting at least 50 "'""y ~..:>c<2S". percent of the appraised value of tbe property in the area according to the .~_._....., C .'\Y. ') most recent certified appraisal roll for the county in which the area is I - lOalled. . .' · · · ,-.- (b) In this scction. "federally assisted new community" means a federally .ssisted area that has received or will receive assistance in the form of loan -,'Uarantees under Title X of the National Housing Act, I if a portion of the federally assisted area has received grants under Section 101(a)(1) of the Housing and Cormn~ty Development Act of 1"974.2 Added by Acts 1987, 70th Leg., ch. 191. t 1, eff. Sept. 1. 1987. Amended by !.ets 1989. 71st Leg.. ch. 2, i 14.0!(a), eff. Aug. 28. 1989i Acts 1989. 71st Leg., ch. 1106. i '1.7, eff. Aug. '1.8, 1989: Acts 1989, 11st Leg., ch. 1137. t 18. eft. Sept. 1. 1989. 112 U.S.C.A. 5 1749.. el seq. (repealed). z 42 U.S.C.A. t 5307. I I ~; Acts t 989, . . ch. 554. ~ 1. :"-u, ~ 4(g). - __._, _l__lthJ . - '-"--.. or to the public . .~~ t.~~..,...~ ~r I Qr deterio- .. 0 or street . - -:-::::~!~..... or fair value of other cause: ~ 311.005 Re\180r's Note The revised law omits the criterion for a reinvestment zone listed in Section 3(b)(4) of tbe Texas Tax Increment Financing Act of 1981 (former Article 1066e. Vernon's Texas Civil Statutes). That criterion was specifically removed from the law by Section I, Chapter 554, Acts of the 68th Legislature, Regular Session, 1983. Chapter 554 was a' cOplprehensive re~lsion of the Texas Tax Increment Financing Act of 1981. Another act of the 68th Legislature, in the course of addinS a 'new criterion (Subd,ivlsion (5)) to Section 3(b) of the Texas Tax Increment Pinancing Act of 1961. set out aU of Section 3(b}, including Subdivision (4) removed by Chapter S54. See Section S. Cbapter 841, Acts of the 68th Legislature, Regular Session. 1983. However, even though Subdivi. slon (4) was set out by Chapter 841, its deletion from the revised law is ln accordance with the Intent of the 68th Legislature. Prom the context of the two bills It is apparent tbat Chapter 841 set out Subdivision (4) not to reenact It but only because it was necessary to set out all of Section 3(b) in order to . add a new criterion to the list. Historical and Statutory Notes Acta \989, '71't Lei.. ch. 2, i 14.05(.). to isnated al an enterprise zone under the TeUS ~onform to Acts 1987, 10th Lei.. ch. 765. i 3, Enlerprise ~one Act (Anic:\e 5190.7. Vernon's In .ub.ec. (.)(4) substituted "an" for -a local or Texas Civil Statutes)," sute-federal" precedln."enletprlee lone-. Acts 1989. 71ll LeIJ., ch. 1131. i 18. added Acts 1989. 7ht Lei., ch. 1106. S 21, deleted subG. (a)(5), and made other n01'lSubstantive \\lbt.t. (a)(4) which formerl)' provided.: "'oc des. changes. 297 I. I I I I I I I I I I I I I. I I OCT 16 '97 15:26 BD REALTY ADVS e e fi 311.005 Prior Lawe: Acts 1981. 67th Leg.. 1st C.S.. p. 45. ch. 4, i 1. Acts 1983. 68th Leg.. p. 3213, ch. 554, t 1. erOli1 Reff Ordlnanco de.i;nating reinvestment zone. findings. I 311.006. Restrictions on Composition of Reinvestment Zone <a) A municipality may not create a reinvestment zone if: (1) more than 10 percent of ,the property in the proposed zone, excluding property that is publicly owned, is .used for residential purposes; or (2) the total appraised value of taxabie real property in the proposed zone and in existing reinvestment zones exceeds 15 percent of the total appraised value of taxable real property in the municipal1:y and in the industrial districts created by the municipality. (b) A municipality may not change the boundaries of an existing reinvest. ' ment: zone .to include property mOre than 10 percent of which; excluding property dedicated to public use, is used for residential purposes or to include 'more than IS percent of the total appraised value or taxable real property in the" municipality and: in the industrial districts created by the "municipality. (c) A municipality may not create a reinvestment zone or change the boundaries of an existing reinvestment zone if the proposed zone or proposed boundaries of the zone contain more than IS percent or the total appraised value of real property taxable by a county or school district. (d) For purposes of this section, property is used for residential pu:-poses if it is occupied by a house haVing fewer than five Jiving units. and the appraised value is determined according to the most recent appraisal rolls of the municipality. (e) Subsec'tion (a)(1) does not apply to a reinvestment zone designated under Section 311.00S(a)(S}. ~dded by Acts 1987, 70th LeB., ch. 191, f 1, eff. Sept. 1, 1987. Amended by Acts 1989. tlst Leg., ch. 1137. ~ 19, elf. Sept. 1. 1989. . ' . . .. HlltonAl and Statutory Notes Thd989 'amendment added aubsec. (e). Acta 1983. 68th Leg.. p. 3213, eh. !54, i 1. Ft!' . . La' : Vernon', Ann.Civ.St. art. 1066e. i Sea) to Cd). or \Ie" ACl& 1981. 61th Lq.. 1st C.S.. p. 45. en. 4. f 1. . . ero.. .Referencel B;)undar:v change, exiltinl zona, see t 311,007. I I 311.007. Changing BoUndaries of Exi8ting Zone' (a) Subject to the limitations provided by Section 311.006. the boundaries of an existing reinvestment zone may be reduced or enlarged by ordinance or resolution of the governing body of the municlpaJ:t~' that created the zone, 298 - .....- - .:i. j) ~t-:, 'f' ..' '~: .P.? ,. TAX INCREMEJ\ ~h. 311 (b) The governi vestment ,one to area be included i: of the municl.palit, of the appraised VI eertiEi~d appraisa; composition of the Section 311.009(a) the enlargement 0 conform to the re as applied to thE 311.006(b) relatinl that may be .inclu~ under this, subsect Added by Acts 1987. 71st Leg" ch. 1137, ! The 1989 amcncimel tlon as subsee. (a) and PrIor Law.: Acts 1981, 67th Leg., S 1. I 311.008. Pow (a) A municipali carry out this chaJ: roje w ~) 0) AF5tJtJf5' 0.. t:ff'S IVtD ( It-PPL "r l' ~ Fe TiT't 00 b-~ T \ F '3 \lfDo5"~) , ac ree ojet ann ItO l ,e g ) im ~. __....__._ .....lay : the land or. that (4) consistent. (A) acquire 1 .propriatelr de\ Or in a federalI or restoration . sion of public (B) acquire, I sites or other .' .' P.8 e. e _____~Jo..&:~___.....~~.._....~___ I I .n~~r. TAXAnoN' . Tltl. 'S., 4790, ch. 841, I 5- ""'. '7~" , !. . . .;.. ?,-,' i'4.05(b). ':, I~ 1066e, It 2, 3(b). ; . ~ 7.n.... - -- --- if: ..., 0;-;;-;-;;:; ,"y...l",:j;_..- .~ ;~~;~~'. -~;--_.:.. '. ...1._ _ __u_ _ , ~ ~!!r:. ... ....... "__,,.II. -,"........_ - ~- -. ~~~- ----- ~." ioial annr.ic,.~ . - -- --- -rr- -.-...... _'::- the Industrial." - :" ::::;; l"~luv~Ji- .u1..'_'- J d' ..n_n_. exc u l~g _ _-_-:.-: __ ~_ _I __ J_ fI - - - I.U '~l\';.~'-'C;; . f~~l property in _::.~ municipality. . m_ or change the .J ~_ __ _~_____...1 "e ~'_' ~ ~ 'C .... ~ y' '" yu~",,, ae total appraised -- '-~- - _: ~ -- ~ fitiFDU.iC~ if - '--~~itS,- ~nd the '__1 ~~Jt_ _~ _ :r~!!~ g! . - ~nn~ designated · - ... '.- -- ~;:t;;; 1989. -v.--------. . p. 3213. ch. S54, . 1. -. ,nAI.,,; t Sea) to Cd). . the boundaries .. :-~= o.dlniinc~ .or . ~rl'!at~d the zone. .',' TAX INCREMENT FINANCING ACT i 311.008 ,: Ch. .311 (b) The governing body of the municipality may enlarge an existing rein- \festment zone to include an area described in a petition requesting that the area be included in the tone if the petition is submitted to the governing body of the municipal1ty by the owners of property constituting at least SO percent .. of the appraised value of the property in the area according to the most recent certified appraisal roll for the county in which the area is located. The c:omposition of the board of directors of the zone continues to be governed by Section 311.009(a) or (b), whichever applied to the zone immediately before the enlargement of the zone, except that the membership of the board must . . ~nform to the requirements of the applicable subsection of Section 311.009 :, as applied to the zone after its enlargement. The provision of Section 311.006(b) relating to the amount of property used for residential purposes that may be included in the zone does not apply to the enlargement of a zone under this subsection. Added by Acts 1987, 70th Leg., eh. 191, ~ I, eff. Sept. 1, 1987. Amended by Acts 1989. 71st Leg.. ch, 1137, t 20, eff. Sept. I, 1989. . HI.torical and Statutory Note8 The 1989 amendment. designated this sec. Acts 1983, 68th Leg.. p. 3213, ch. SS4, 5 1. tion as lubtee. (a) and added sub sec. (0). Vernon's Ann.Civ.St. lIrl. 1066e, ; SCb). Prior LaWSI Acts 1981. 67th Leg., 1st C.S.. p. 45, c:h. 4, I 1. I 311.008. Powers of Munlcipallty (a) A municipality may exercise any power necessary and convenient to carry out this chapter. including the power to: (1) cause project pla~s to ~e prepared, approve and implement the plans. and otherwise achieve the purpC?ses of the plan: (2) acquire real property by purchase, condemnation, or other'.means to implement project plans and sell that property on the terms and conditions and in the manner it considers advisable: (3) enter into agreements, including agreements with bondholders, deter. ,mined by the governing body of the municipality to be necessary or co~venient to implement project plans and achieve their purposes, which agreements may include conditions, restrictions, or covenants that run with the land or that by other means regulate or restrict the use of land: and' (4) consbtent, with the project plan for the zone: (A) acquire blighted, deteriorated. deteriorating, undeveloped, or inap' propriately developed real property or other property in a blighted area or in a federally assisted new community in the zone for the preservation or restoration of historic sites, beautification or conservation, the provi- sion or public works or public facilities, or other public purposes; or (B) acquire, construct. reconstruct. or install public works, facilities, or sites or other public improvements. including utiUties, streets, street 299 I. e e . I . 'I fi 311.008 LOCAL TAXATION Tltle 3 lights, water and sewer facilities, pedestrian mails and walkways, parks, flood and drainage facilities. educational facilities, or par~ing facilities, (b) The powers authori7.ed by Subsection (a)(2) prevail over any law OT municipal charter to the contrary. (c) A municipality may make available to the pubiic on request financial information regarding the acquisition by the municipality of land in the zone when the municipality acquires the land. Added by Acts 1981, 70th LeS., ch. 191, i 1, cff. Sept, 1, 1987. Amended b~' Acts 1987, 70th Lea., 2nd C.S.. ch. 44. i 2, eff. Oct. 20, 1987, Historical IUld Statutory Notes The 1987 ~mendmcne d~lfl.ted the fonner ACIS 1983. 68eh Leg.. p. 3213, ch. 554, i I. texe as 8ybieC;. Ca) and In INbd. (2). thereof Vernon's Ann.Ch'.Se. en. l066c,! 9. in"ned "and in ehe manner": and added sub. sees. (b) and (e). . Prior Law.' Acts 198-1. 67th Ler., bt C.s.. p. 45. c:h. 4. i 1. '. ..." 1; tv' ; fl:;1 /11 ~ 311.009. "Composition of Board of Directors (a) Except as provided by' Subsection (b), the board of directors of a reinvestment zone consists of at least five and not more than 15 members. unless more than 15 members are required to satisfy the requirements of this subsection. . Each taXing unit other than a municipality that levies taxes on real property in the zone may appoint one member of the board. A unit may waive its right to appoint a director. The governing body of the municipality that created the z.one may appoint not more than 10 directors to the board; except that if there are fewer than five directors appointed by taxing units other than the municipalit)', the soverning body of the municipality may appoint more than 10 members as long as the total membership .of the board does not ... exceed 1 S. . ~ (b) If the ;u,ne was designated ~nder Section 311.005(a)(5), the board of directors of the zone consists of nine members. Each school disttict or county that levies taxes on real property in the zone may appoint one member of the board if the school district or county he.; approved the payment of all " or part of the tax increment produced by the unit. The member of the state " senate in whose district the zone is located is a member of the board, 'and tbe ," member of the state house of representatives in whose district the zone is ,::' located is 8 member of the board. except that either may designate another :: Individual to serve in the member's place at the pleasure of the member, If :.... the zone is located in' more than one senate or house district, this subsection :' applies only to the senator or representative in whose district a larger portion ~ of the zo~e. is located than any other senate or house district, as. appJicablr :. The remalnmg members of the board are appointed by the governmg body 0 ,) the municipality that created the zone. 300 , .-- . ~o.; .,.. '..., . '- " ~, TAX IN Cb. 311 (c) M' longer tl tion. '.f. (d) A of 'the I served i (e) Tc , the mu! (1) (, (: wh (2) { .( pel mE mcmbc on Jan chalrlT .vacanc consid .~: Added " 71st Le The] lUted "; . llIe" fOI .,' ecctlon . ~ leCone!. (.): Ir. .... Nbaec:. '. " "'0 1 . by ehe : lndlvld 1- . .&.tJ 'I e e, ;O'tAX INCREMENT FINANCING ACT ':.~31l :' (c) Members of the board are appointed for terms of two years unless :k!nger terms are provided under Anic1e'XI, Section 11, of the Texas Constitu- tion. Terms of 'members may be staggered. :' Cd) A vacancy on the board is filled for the unexpired term by appointment of the governing body of the taxing unit that appointed the director who 'lCfVed in the vacant position. ; (e) To be eligible for .appointment to the board by the governing body of . .~ the municipality, an individual must: ' r. ,. (1) if the board Is covered by Subsection (a): (A) be a qualified voter of the municipality; or (S> be at least 18 years of age B,nd own real property in the zone, whether or ~ot the individual resides in the municipality; or (2) if the board is covered by Subsection (b): (A) be at least 18 years of agei and (B) own real property in the zone or be' an employee or agent of a person that owns real property in the zone. ef) Each year the governing body of the municipality shall appoint one ..' member of the board to serve as chairman for a term of one year that begins r, on January 1 of the following year. The board of directors may elect a vice- of I ~ thalrman to preside in the absence of the chairman or when there is a __L _~ _ L _l: _L:': r "'ACGTiCY in the office of chairman. The board may elect other officers as it .-...- <,', uua_. ; considers appropriate. . - ... ._.:_.=. '~-'. ::~ Added by Acts 1987, 70th Leg., ch. 191, ~ 1, eff. Sept. 1, 1987. Amended by Act$ 1989, . _:000_ i..... 71st Leg., ch. 1137, ~ 21, eft. SepL 1. 1989.' ~MlV~ oW . :....y:: ~.:' H!,torica( and'Stacutory Notet .. C~CZ!_ :~ The 1989 amendment. in 5ubsec:. (a). subltl. "(1) be a qualified voter of the municipall. ~i"" lUted "~cept as provided by Subsection (b). ty: or ". t.bc- for \'The", anel "this .ubsection" for "Sub- "(2) be at least 18 years of age and own ,~ -=tlon (b)": rodeslenated lubsoc. (b) III the real property In the zone, whether or not lhe :' IIiCOnd, tbird and fourth sentences of Jubsec. individual resides in the municipality." . ta>: inserted new lubsec. (b)j and rewrote . 1Ubsee. (e) which prior thereto reach Prior UWI: , ~ :. Acts 1981. 67th LoS.. lit CoS., p. 45. eh. 4, o be eligible tor appointment to the board i 1. ~~he lovernina bocly of the m\lnicipality, an Acts 1983. 68lh Lee., p. 3213, eh. 554. t 1. lYldual mUlt: Vernon's Ann.Civ.st. art. 1066e, S 6. I 1311.010 I , . . i : ' f " i' ! .... : - r1ntl"'" - -------- ~-=-_ ...t ~!~ !:!!~ ~...- I ! I : !. ~ i> i r l 1,': '.: . . ----- any law - . r ;,' , . : -',. .. I Acts 19 :.1 I . . -~.. 554, t :. ~ 9. '. . . - : ~ ."i . I . Ii! :: ~ . I ., I ~:' I ,I ~ . ~ \ u_A o{ sIl,' of the staU ~~d the', ___~ zone is - . - Another , '.... -- If' ' 0' CrOS8 References f .Ordillan~e designatin, lone. specificatIon of number of directors, see ~ J 11.004. ';: I 311.010. Powers and Duties of Board of Directors ~, u __ p:;:'".i~~ .; . Ca) The board of directors of a reinvestment zone shall make recommenda. ~"nlicablc:. .: ~ons to the governing body of the municipality that created the zone concern- _ b;:;:Y ol.. :;' ~nl the administration of this chapter in the zone. In addiiion to the powers '.)1-1 .I.e. ':;1{ .I.':>' C:1 ClU I'<:t.HL. 1 r HUV;:;' .. .. e e L~_._ ..__ ___ .._..n'__~'______~.____ t-'.11 I. I LOCAL TAXATION Title 3 ty by ordinance may dele,ate to the board any powers and duties' relating to the it;1plementation of the project plan for the zone that the governing body considers advisable. (b) The board of directors of a reinvestment zone may enter into agree. ments as. the board' considers necessary or convenient to implement the project plan and reinvestment zone financing plan and achieve their purposes. An agreement may provide for the regulation or restriction of the use of land by imposing conditions, restrictions, or covenants that run with the.land. An agreement may dedicate revenue from the tax increment fund to pay the costs of replacing housing or areas of public assembly 'i.n or out of the zone. An agreement may dedicate revenue from the tax increment fund to pay a neighborhoC?d enterprise association for providing services or carrying out projects authorized under Section 21. Texas Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil Statutes). in the zone. The term of an agreement with .a neighborhood ente:rPrise ass.ociBtion ma~' not exceed 10 yea~s. (c): Subject to the appr~val of the governing body of the municipality that created the zone, the board of a zone designated under Section 311.005(a)(5) may exercise the power granted by Chapter 211, Local Government Code, to the .governing body of the municipality that created the zone to restrict the use or uses of property in tbe zone. The board may provide that a restriction adopted by the board continues In effect after the termination of the zone. In that event. after termination of the zone the restriction is treated as if it had been adopted by the governing body of the municipality. Added by Acts 1987, 70th Leg.. ch. 191, f 1. eff, Sept. 1, 1987. . Amended by Acts 1989, 71st Lei., ch. 1~37, 5 22, eff. Sept. 1,1989: Acts 1991, 72nd Leg., 2nd C.S., ch. 11, ~ 58. eff. Sept. 1. 19!H. ~ 311.01~ mltorlcal and Statutory Note6 The 1989 amendment. deslanlted this HC' of the chaDges. TUe$ due before the eff~tlve don as suosec. (a). and added lubsec$. (0) and date of thOle lections are governed by the law Cc). in effe:t when the tues became due. and \hal The 1991 amendment added the fourth and law is continued in effect for tbe collection or fifth lenIence' In 5ubaec. (b). ',calle5 due and for civil and criminal enforce. Secl,ion 69Cc) of Acts 1991, 72nd Lea., 2nd 'ment of the liability for those \aXes." C.S., th. 11. provides: ''The cbanaes made by this Act to the Texas Entel1'rlse Zone A.ct CArtic1e 5190.7, Vemon'a Texas'eMI Slatutes) and \0 the 1ax Code apply only to taxeS due on or after the effective date Prior Law.: Acts 1981. 67th Lea.. 1st C.s.. p. 4S, ch. 4. ~ 1. '. Vernon's Ann.Clv.St. an. 1066e. fi 7. I ~ ! fi 311.0101. Participation of Disadvantaged Buslnesses in Certain Zones (a) It Is the goal of the legislature. subject .to the constitutional require. ments spelled out by the United States Suprer:1e Court in J. A. Croson Company v. Cit). Qf Richmond (822 F.2d 1355) and as hereafter further elab9rated by federal and state courts, tbat all disad"antaged businesses in the zone designated under Section 311.oo5(a)(5) be given full and complete access to the procurement process whereby supplies, materials, services, and equip. 302 TAX I Ch. 31 t ment a the ext busine: bids 0: propos state. .,J ;~ (b) I. 0: nc:ss and (2 tage ing' Step reql: .. es iz . .:. lo ~: r. .::i: ;~ '.1 .,... i .:1- '''I~ l '.'lI:,. ""'. :~;. - ,~.~ (3 pro} max The a fa (4 the zon (: zon reql (e) deveh als, se on ar. aware , total . repor ~. busin :'. (d) :, busin ..,. of Stl : soals .: enter .." the t ~, expel .. .; AddC"1 I- e e ___f___ _ r~I:gT"""._ .. _-_.,-_._--;0 :" .__ m__", ~ " j."t() agree:. ..Lu_ - . th .. ..m e ~" I1I.l6PQScs.: !!~ ~~~ ~f laud - '~_..J .. . ---'~.'::':'_- ~ -_ ... ...o&~ ~".:s the Zone. AzJ.'_ _' to. pay a.. .' .;,,-.:; out ~Act (Article, ~_~~eement . "~"liII" ..- ,.. -, - .u.... ._., W&~ ' '\1 t.nn~(2"1\\ . - - - ,.-, ~--, . "Code, to .. ... t~$trict. the -. - ...... I ,.. ::::~=~ ;, 'tAX INCREMENT FINANCING ACT t 311.0101 , '., Ch. 311 ~~ 'tncnt are acquired by the board. It is also the intent of the legislature that to ~: the extent constitutionally permissible, a preference be given to disadvantaged ":, busines~s. The board and general contractor shall give preference, among , bids or other proposals that are otherwise comparable, to a bid or other ~:.' proposal by a disadvantaged business having its home office located in this ; Jt8te. (b), It is the intent of the legislature that the zone shall: (1) Implement a program or programs targeted to disadvantaged busi. nesses in order to inform them fully ac?ut the zone procurement process and the requirements for their participation in that process: (2) implement such steps as are necessary to ensure that all disadvan- taged businesses are made fully'aware of opportunities in the zone, includ- ing but not limited to specific opportuniti~s to submit bids and proposals, Steps that may be appropriate in certain circumstances include mailing requests for proposals or notices inviting bids to all disadvantaged business- es in the county: (3) require prime contractors, as pan of their responses to requests for proposals Of bids. to make a specific showing of how they intend )to maximize participation by disadvantaged businesses as subcontractors. The zone shall be required to evaluate such"actions by prime contractors as a factor in ,the award of contracts within the zone procurement processj (4) identify disadvantaged businesses in the county that provide or have the 'potential to provide supplies, materials. services, and equipment to the tOnei . and (5) identify barrIers topartieipation by disadvantaged businesses in the zone procurement process. such as bonding, insurance, and workIng capital tequlremenu that may be imposed on businesses. (c) It is the intent of the legislature that the zone. shall be required to " develop a prOgram pursuant to this Act for the purchase.of supplies, mated- .:. als, services, and equipment and that the board of the tone compile a report .... on an annual baals listing the total number and dollar amount of contracts ;':' awarded to' disadvantaged businesses during the previol.,ls year as well as the 10lal number and dollar amount of all contracts awarded. Such annual report shall be available for inspection by the general public during regular business hours. Cd) The board by rule shall adopt goals for the participation of minority business enterprises and women-owned business enterprises in the awardi~g of state contra!:ts for professional services. To implement the participation ,Ioals. the board shall encourage each issuer to award to minority business enterprises and women-owned business enterprises not less than lS percent of ~e lotal value of all" professional services contract awards that the issuer expects to make in its fiscal year. Added by Acts 1989, 7lst Leg., eh. 1137. G 23, eff. Sept. 1, 1989. 303 - ;;. f~~~t!~!!~~ . _ ~1[_1I~~~_ In _ ::~ if i~ had .. . -"- 10AO .--;. ~""~ -' --. . __ l"lo. H.! 58, ~ " . . u .c'::.-"~~d ;h..t -'=-_-it~~~I_:"--:';" - . - ---:--.- - ~Jor~e. p. 4~, c:h. 4, .--- ~ 7. _";~:ri 7:nnes , -- -_.:_- .~YJ' ...~ A. Croson ~~~, further d.nl'!!:!:l!~ in the ~. and equip- . . I I I I I I I I . - , . e e A 311.011 LOCAL TAXATION Title 3 g 311.0-11. Project and Financing Plans (a) The board of directors or a reinvestment zone shall prepare and adopt a project plan and a reinvestment zone financing plan for the ~one and submit the plans to the governing body of the municipality that created the zone. The plans must be as consistent as possible with the preliminary plans developed for the zone before the creation of the board. (b) The project plan must include: (1) a map showing existing uses and conditions of real property in the zone and a map showing proposed improvements to and proposed uses of that property; (2) proposed changes of zoning ordinances, the master plan of the munic. ipality, building codes, and other municipal ordinances; . (3) a list of estimated nonproject costs; and (4) a'statement of a method of relocating.per.sons to be displaced as a result of implement11'lg the plan. (c) The reinv~stment zone financing plan must include: (1) a detailed list clescribing the estimated project costs of the zone, including administrative expenses; (2) a statement' listing the kind, number, and location of all proposed public works or public: improvements in the zone; (3) an economic feasibllity study: (4) the estimated amount of bonded indebtedness to be incurred: (5) the time when related costs or monetary obligations are to be in. curred: (6) a description of the methods of financing all estimated project costs . and the expected sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit that levies taxes on real property in the zone; (7) the current total appr~ised value of taXable rea) property in the zone; (8) the estimated captured appraised value of the zone during each year of its existence; and (9) the duration of the zone. (d) The governing 'body of the municipality must approve a project plan or reinvestment zone financing plan after its adoption .by. the board. The approval must be by ordinance that finds that the plan is feasible and conforms to the 'master plan, if any} of the municipality. (e) The board of directors of the zone at an~' time may adopt an amend. ment to the project plan consistent with the requirements and limitations of this chapter. The amendment takes effect on approval by the governing body of the municipality. That approval must be by ordinance. If an amendment reduces or increases the geographic area of the zone, increases the amount of bonded indebtedness to be incurred, increases or decreases the percentage of 304 TAX INCREM: Ch. 311 a tax incremel estimated proje acquired by th, after a public t "311.003(c) and (f) In a zone county with it. provide that at streets, highwa: from ad valorel one.third of th income housin. Added by Acts .1! 71st Leg.. ch. 11 The 1989 amenc Prior Laws: Acts 1981. 67th f 1. " ., 311.012. (a) The arne property ~axes of real propel (b) The cap' for a year is t} increment bas (c) The tax i ,real property year in which Added by Acts I~' -, 'or ..;~ ~. .~" ..,. !- !i- " ... The prov values whe law becaus, taxing unit possibility Prior Laws: Acts J981. 671 , 1. .. . I 1.- .. ~A. I .c~;;';-=: ~~d adont 1'1. "t.o __d ~~d sub~i~ .. .~ted th~ zo;;~:':: preliminary plans' ". I ~ ~ property in the i"'~'~~;;~ uses of" plan of the munic- I be displaced as a I :::~:' of the zone, . iii of all proposed - _ n__ ._.u.J. !!,!~;";'';l..;:.;.:...:.. . - - - 0 are to be in- - " project costs pay proj eet costs, - . the property . ~. l~ the zone; ~ -:' in the zone; . '-' -.: each year ~ ~rnj~~t plan or tbe board. The Is feasible and , adopt an amend- - ~!!~ limitations of -, - ..:u-_.:::,,:,::~~ body If ~n amendment G~:,14~ oiUu~;;: of --- ~1!~ perc~n~~gs? cf ::;, I :.. ~ .. . ". e e , '" 1AX INCREMENT FINANCING ACT ~ 311.012 ..~.:.:ch. ~u ' ~. a ~x increment to be contributed by a taxing unit, increases the total ..:' c:sti~ated project costs, or deslgnates additional p~operty in the zone to be i..: acquired by the municipality, the approval must be by ordinance adopted r: after a public hearing that satisfies the procedural Tequirements of Sections .,.: 311.903(c) and (d). ' (E) In a zone designated under Section 311.00S(~)(S) that is located in a ' ,county with a population of 2.1 million or more, the project plan must proyide that at least one.third of the surface area of the zone, excluding roads, stre~ts, highways, utility rights-of.way, and otber public areas or areas exempt fro~ ad valorem taxation, be dedicated to residential housing and that at least oDC;-thiT'd of the tax increment of the zone be dedicated to providing low- income houslns during the term of the ~one. ! . Added by Acts 1987, 70th L~B" cll. 191, ~ 1, eff. SepL 1, 1981. Amended by Acts 1989, 71st. Leg., ch. 1137, S 24, eff. Sept. +, 1989. . Hlsc.orleal and Stat.\ltory NOI~S The' 1.989 amendment adcled iubaec: (fl. Acts 1983, 68th Leg.. p. 3113, ch. 554. S 1. .... i ... . . Vernon's Arln.Clv.st. art. 106be..ti~ 2, 8. ~oQr _WII : ActS \981, 61th LeB.. 1st C.s.. p. 45. ch. 4, :S 1. ! I ~11.012. Determination of Amount of Tax Increment (,,) The amount of a taxing unit's tax increment ~or a year is the amount of property ta"es levied by the unit for that year on th'e captured appraised value of real property taxable by the unit and located in a reinvestment zone. (b) The captured appraised value of real proper~y taxable by a taxing unit fo~ a year is the total appraised value of the property for that year less the tax in~rement base of the unit. (c) The tax increment base of a taxing unit is the' total appraised value of aU real property taxable by the unit and located in a reinvestment zone for the ye~t' in which the zone was designated under this chapter. A.dded by Acts 1987, 70th Leg., ch. 19i, ! 1, eff. Sept. 1', 1981. R.evisor', Note The provisions 'of tbe former law reiating to the ;use of different appraised valuu where different values exist in a zone are unneeessary in the revised law beC8\lSe the revised taw defines tax increment in relation to each separate taxing unit's property taxes, which includes the use of and allows for the possibility of different value~ applicable to particular taxing units. Historical and Statutory Notes Acts 1983i 68th Leg., p. 3213. ch. 554. i 1. Vernon's Ann.Civ.St. ar\. 1066e, ~ 2. 'P~r Laws: Acta 1981, 61th LeB.. 151 C.S.. p. 4S. ch. 4, : t 1. 305 'I e e :i ..;.i.. " ....:,'...,. I I I I I I I I I I I I fi 3 t 1.012 LOCAL TAXATION Tltle 3 Tax Increment bue 1 Notes of De~l.lons tone In accordance with Tex.' T..x Joe-remenl flnanclnl /'oct of 1981. 1982 appraised val\.le waS properly Uled as tax increment base. Lampson v. City of Beaumont (App. 9 Dial. 1985) 687 S.W.2d 788, 1. TL' increment Due Where city adoptee! ordinance in 1982 delig. natins \ax Increment ba~ and :re\nveltment fi 311'.013. Collection and Deposit of Tax 'Increments (a) Bach taxing unit that taXes real property located in a reinvestment zone shall provide for the collection of its taxes in the zone as for any other property taxed by th~ unit. (b) Each taxing unit shall pay into the taX increment fund for the zone an amount equal to the taX increment produced by the unit, less the sum of: (1) property taxes produc.ed from the tax increments that are, by contract executed before the designation of the area as 8 reinvestment zone, required to be paid by the 1Jnit to another poUt,ical subdivision; and (2) a portion, not to exceed 1S percent, of the tax increment produced by' the unit as provided by the reinvestment zone financing plan or a larger portion as provided by 'Subsection (f) or (g). ' (c) A taxing unit shall make a payment required by Subsection ('b) not later than the 90th day after t~e delinq,uency date for the unit's property taxes. A: delinquent payment incurs a penalty of fhle percent of the amount delinquent and accrues interest at an annual rate of 10 percent. (d) If the rein\lestment zone is created on or after August 29, 1983. a taxing unit is not required to pay a tax. increment into the tax lncrement fund of the: zone after three years from the date the zone is created unless the following conditions exist or 'have been met within the three-year period: (1) bonds have been issued for the zone under Sectlon 311.015; (2) the municipality has acquired property in the zone pUfS\1ant to the project plan; or . '. (3) construction of improvements pursuant to the project plan has begun in the zone. (e) If the reinvestment zone was created before August 29, 1983, a taxing unit is not required to pay a tax increment into the laX increment fund of the zone after September 1, :1986, unless the following conditions existed or were met before September 1~ 1986: (1) bonds wer:e issued for the zone under Sectio~ 311.015; (2) the municipality acquired property in the zone pursuant to the project plan; or (3) construction of improvements pursuant to the project plan has begun in the ~one. (f) The governing body of a taxing unit that taxes real property located in the zone may determine the portion of the tax increment produced by the 306 . . i - . TAX INCREMEN Ch. 311 taxIng unit that tt: decide to retain a~ \1nless the governi the zone in writin; 60th day after th approves the rei 311.011(d). The portion of the ta> ment zone fund I (g) A taxing ur its tax incremen designated undel ~one under Secti to do so with the tax.ing unit may before or after t conditions for p the portion C?f t which that taX i conditions in tb .. and the board ( (h) In lieu of taX increment f " taXing unit. od property in a " from taXation .... concerning an ;, manner and s\ property cover ':' Chapter 312. ", property oWnt' ,:' increments w( " (g). . (i) Subsecti ; than 230,000 Subsect " V.A.C.s. I ",:" August 2~ : that parti R.egular ~ I. ---- e e I L TAXAnO~ . Tltl, ! 1- . I ~~I~v~~!:rru."t '^n~ . I = for ~~y-- ~~~: . , !':I!' the ,zone an ; _ '--,-, the sum of:: _ ..n... by contract /' - ~ -,rJrl'_ ,..""ntp.... ~~~ - - - ---r - -._........._ ..- ~ u It , , TJrnnur..n nv_ _--n. r--------" _ plan or a larger ..._u IL\. __.L ,.__ - -- --- - -- - nlli taTP'P" . . ~ n . ., ~_ _._ _____ yt~P;;.ti i.Me~. A I~~~! delinquent . 10. 1983, a taxing ._ -=-~f,._~~~ofthe .- -=; ihc fonowing 111.01';' ._ ~ _ n. . pi.4,iWi.ll~ to the ~:! pl~!'l hllC heS'!" l. 1983, a tuing -- -. u - ~,!T1J of the :.. ......:......1 or were _ _n_____, ' . 1'\11lj. _ .. ...-- -,- _ ----:---. ~~ tJ!!: vr-VJ~'"". - ::: plan has begun . _ . -" located in . produced by the ;;;;;; .' .~.. TAX INCREMENT FINANCING ACT ~ 311.013 'i Cb.3U .,~, ,taXing unit that the taxing unit will retain from the ~a.x increment and may .;' decide to retain all of that tax increment. The determination is not effective ~~ unless the governing body of the taxing unit notifies the board of dire~tors of the zone in writing of its determination under this subsection on or before the 60th day after the date on which the governing body of the municipality approves the reinvestment zone financing plan as provided by Section 311.011(d). The governing body of the taxing unit may not decrease the portion of the tax increment that it has determined to dedicate to a reinvest. znent zone fund aftex: the project plan is approved. , (g) A 'taxing unit is not required to pay into the ta."C increment fund any of i'" i~s tax increment produced from property located in a reinvestment zone '~ "designated under Section 311.00S(a)(S) or in an area a~ded to a reinvestment " zone under Section 311.007(b) unless the taxing unit enters into an agreement to do so with the governing body of the municipality that created the zone. A t~ng \lnit may enter into an agreement under this subsection at any time before or after the zone is created oE:' enlarged. The agreement may include conditions for payment of that tax increment into the fund and must specify the portion o~ the tax increment to be paid into the fund and the years 'for which that taX Inaement is to be paid into the fund. The agreement and the conditions in the agreement are binding on the taxing unit, the municipality, and the board of directors of the zone. (h) In lieu of permitting a portion of its tax increment to be paid into the tax increment fund. and notwithstanding the provisions of Section 312.203, a taxing unit, other than a city, may elect to offer the owners of taxable real property in a reinvestment zone created under this chapter an exemption from taxation of all or part of the value of the property. Any agreement concerning an exemption from ad valorem taxes shall be executed in the manner and subject to the limitations of Chapter 312: provided, however, tbe property covered by the agreement n~ed not be in a zone created pursuant 10 Chapter 312. A taxing unit may not offer a tax abatement agreement to property owners in the zone after it has entered into an agreement that its tax , increments would be paid into the taX increment fund pursuant to Subsection {g}. 0) Subsections (f) and (g) do not apply to a city with a population of more , than 230,000 that 'borders the Gulf of MexicO or Mexico. Added by Acts 1987. 70th Leg., ch. 191, i 1, elf. Sept. 1, 1987. Amended by Acts 1989, ?1st L.ti., ch. 1137, S' Z5, eff. Sept. 1. 1989; Acts 1991. 72nd Leg., ch. 16. f 17.06, eff. Aug. 26, 1991. llevf&or's Note Subsections Cd) and (e) of the revised law replace the reference in former V.A.C.S. Artlcle 1066e, Section 10(c) to "the effective date of this Act" wi.th August 29, 1983, the effective date of the amendment to that section adding that particular provision (Section 1, Chapter 554. Acts of the 68th Legislature, Regular Session, 1983). 30; 'j' . - PCT 16 '97 15:34 BD REALWDV;3 I I I , , fi 311.013 Historical arid SLaLutOry Notes I I I The 1989 amendment. In lubd. (b)(2) added "or a lara.r portion as provided b)' Subsection CO or (a)"; and added lubsecs. (0. (8) and (h). Secllon 27 of the 1989 amendaton' act pro. vides: . "The change in law made by Section 2S of thiS AC1 Goel not apply to the payment of an or p~ ~f the tax, increment. produced b~' a taxins unat Into the tax Increment fund for a reinvest. menl zone for whlcb tbe initial reinve8lment zone flnanclns plan has been approved by the governln, body of the municipality before the effectlve date of this AC\. The payment of aU or part of that tax increment Into the tax Incre- menl fund il governed 'by the .applicable law in eEfect immediately before the effeclive dale of I I e LOCAL TAXATION Title 3 this Act. and the forme:- law Is conlln\lecl in efrect for that purpose. The provisions of Sub- sections (f) and Ca> of Section 311.013. Tax Code, as added b~' Section 25 of this Act shall no! appl)' to cities of o\'er 2)0.000 in pop\lla. tien that berder the Gulf of Mexi~o or Mexi(:o." The 1991 amendment, to codify the last len. tence of section 27 of Acts 1989, 71s1 LeS.,"ch. 113i. added .ub.e;. (i). .' Prior LaWI: Acts 1961. 67th Leg.. lit C.S.. p. 45, ell. 4. . S 1. ,: Acts 1983, 68th .Leg., p, 3213, ch. 554, S 1. Vemon's Ann.Civ.SI. art. 1066e, 5S 9. 10: Cro.. References Retention of portioD of increment, dIscussion of retention at meetings with taxtns units. :see f 311.003. ' . Tax. Increment fund. additi'Onaldeposll5, see 5 311.014. Notes of Dec1.lons relieves ta):ln, units of an obliiation to make payments Into a tax increment fund only if none of the three conditio:u listed have oeen met within the time .1le~'ed. Op.An~'.Gen. 198', No. JM-7S8. I 311.014. Tax Increment Fund (a) In addition to the deposits required by Section 311.013. all revenues from the sale of tax increment bonds or notes, revenues from the sale of any property acquired as part of the tax increment financing plan, and other revenues to be used in the reinvestment 'Zone shall be deposited in the ~ax increment fund for the zone. (b) Money may be disbursed from the fund only to satisfy claims of holders of tax increment bonds or notes issued for the zone, to pay project costs for the zone, or to make payments pursuant to an agreement made under Secti~n 311.01\)(b) dedicating revenue from th~ tax increment fund. (c) SubJect to an agreement with the holders of tax increment bonds ~or notes, money in a tax increment fund may be temporarily invested in ~e same manner as other funds of the municipalit~. (d)' After all project cosis and all tax increment bonds or notes issued for a reinvestment zone have been paid, and subject to any agreement with bo~d. holders. any money remaining in the tax increment fund shall be paid to the ., municipality and other taxing units leV)'ing taxes on property in the zone ~in "~ proportion to .the munlcipality~s and each unit's respective share of the total' '. 308 ' . - Pa)'menu 1 1. Payments Vernon', Ann.Ch'.St. art.. 1066e. ~ 10(c) (re. pealed; see. now. lU~seC. (d) o.f tnls sec:tion) P.i? TAX INC~ Ch. 311 amount of were depo: Added by A 71st Leg., c: The 1989 , tu\cd "zone. added "or Ie agreement n i~tin8' revel I 311.03 (a) A 11 bonds or reinvestII satiSfy ell refu1'\din( bonds or (b) Ta: interest, zone. T) part of tl fund pIe notes 01 fully pai has a lie tbe bonl (c) Ta '. without (d) Tl ~ from th (e) Tj ~ or. hold. : :all or a: " ,of a fae 01, be usee .. , agrees, '~ortp : of the , (0 '1 :" ordina ..D:1ortg: (1 ":~: . (2 'I ~' ." . 'I- . . - e It ,... . 1 ':;j J 3'1 t.~lS . LOCAL TAXATION Title 3 (3) the interest rate that the bond or note bears; (4) the denomination of the bond or note; (5) whether the bond or note is in coupon or registered form; (6) the conversion or registration privileges of the bond or note; (7) the rank or priority of the bond or note; (8) the manner of execution af the bond or note; (9) the medium of payment in which and the place or places at which the bond or nate is payable; .(10) the terms of redemption, with ar without premium, to which the band or nate is subject; (11) the manner. in which the bon~ or note is secured: and (12) any other characteristic of the bond or note. (:1) A band ar note issued under this chapter is fully negotia~le. In a suit, action. or ather proceeding involving the validity or enfarceability of a band' or nate issued under this chapter ar the security of a bond ar nate issued undCT this chapter, if the bond or note recites in substance that it was issued by the municipality for'a reinvestment zone, the bond ar nate is conclusively deemed to. have been issued for that purpase, and the develapment ar redevelopment of the zane is canclusively deemed to have been planned, located, and ea~riecl out ~s provid,ed by this chapter. (h) 'A bank, tr~st campany, savings bank ar institutian, savings and loan assaciation. in~estment company ar ather person carrying an a banking or investment business; an insurance company, insurance association, ar other person carrying on an insurance buslness; or an executar, administrator. curatar, trustee. or other fiduciary may invest any sinking funds, money, or other funds belonging to it ar in its control in tax increment bonds or notes issued under this chapter. Tax incremen~bonds or notes are ~uthorized s~curity far all public depasitS. A persan, palitical subdivisian. or public or private afficer may use funds owned or controlled by the person. palitical subdivisian, or officer to purchase 'tax increment bonds ar nates. This chapter: daes nat relieve any person of the duty to. exercise reasonable care in selecting securities.. . (i) A tax increment bond or note is not 8 general abligatian af th~ munici- pality issuing the bond or note. A tax increment band or note does nat give rise to. a charge against the general credit or taxing pawers of the municipality and is nat payable except as pravided by 'this chapter. A tax increment bond ar note iS5\1cd under' this chapter must state the restrictians of this subsection on its face. ' G> A tax :increment bond ar note may nat be included in any computation af the debt of the issuing municipality. . (k) A municipality may not issue tax increment bonds ar notes in an amaunt that exceed(; the tatal cast af implementing the praject plan for the reinvestment zone for which the bonds ar notes .are issued. 310 iii' TAX IN Cb.31'1 (l) A of issue. Added b3 Th form '.' don" Ban~ Prior Lav Acta 19; t I. Retention I 311.' (a) 01 municl~ exeeuth in a rei: the zan, (1) iisned (2) (3) indeb (4), hy th, (5)' Wdn( a1 inf, finan, iX I 1b . ';H l::>:::l? SD REALTY ADVS G. .suit,.... Cro.. -R.ference.' '-__.J ,~\; I~;~._ Jlettntion of tax increment dependent on bond Isaue, see t 311.013. ...~-~ i"-.i. ..1 3t1.016~: Annual ~eport ... or : :~ (a) On or before the' 90th day following the end of the fiscal year of the .. municipality, the governing body of a municipality shall submit to the chief executive officer of eachtaxlng unit that levies property taxes on real property in a reinvestment zone created by the municipality a. report on the status of the zone. The report m:ust include: (1) the am.ount and source of revenue in the tax increment fund estab- lished, for the zone; . (2) .the amount and purpose of expenditures from the fund: (3) the amount of principal and interest due on outstanding bonded indebtedness: . (4), the tax fn~rement base and current capt~red appraised value retained by die zone: and . (5) the captured appraised value shared by the municipality and other taxing units, the total' ~ount of tax !ncrements received, and any addition- al information necessary to demonstrate compliance with the tax increment financi.ng plan ~dopted by the governing body of the municipality. (b) A copy of.a report made under this sectjonshall be sent to the attorney general. Added by Acts 1987, 70th :I!.es., ch.-191, ~ 1. eff. Sept. I. 1987. Amended by Acts 1989. 11st Leg., ch. 2. S 14.06(a), eff. Aug. 28; 1989. . . _.... IIiiI . ~ - ~ _.. or ......L..._ uuu;~ Q!, --::. -..-- u"'~~.. _~__...J _t This bond. an ___ .1.... UI'" '1;;' '. ~ -," ':.~: ..,-..'rf. e e "7~~ INCREMENT FINANCING ACT 1'311.016 /,C)s. 311' ' :.: (I) A tax increment bond or note must mature within 20 years of the date ; of issue. ;~. Addad by Acta 1987, 70th ~eg., ch. 191, ! 1. eff. Sept. 1, 1987. Jle\lllor'. Note The revised law omit,S the term "bulldlng and loan assoclation." used in the former law bec:ause that term is synonymous with "savings and loan associa- tion" under Te~ law, Sec Section (I), Article 5, Chapter II, The Texas Banking Code of 1943 (Article 342-205, Vernon's Texas Civil Statutes). Historical and Statutory Notes Acts 1983, 68th Leg.. p. 3213. ch, 554. t 1- Vernon', Ann.Clv.St. art. 1066e, 59 9, 11. l. ,"or LaW'I ::i: Acts 1981, .67th Leg., ls\ C.S., p. 45, ch. 4, t 1. Historical and Statutory Note. I"The 1989 amendment, to confonn to Acts Prtor Law.: ..87, 70th lei.. ch; 585. t 1, In lubHC. (a) . lII~Slituted "the 90th, day, fol\owinll the end of ACII 1981. 671h Lei.. 1st C.S., p. 45. ch. 4. ~e f1lC1iLl year of. th~ mun!cipslity..r for "July 1 t 1. o e&ch yea(. Acts 1987. 70th Lea.. ch. 585. t 1. ~, , P.20 I I.. .. ~: ! t': , f , I; 1 1- I :!! t. oo 1 ;. ~ ,. I' ! .. 4 ff, ,q, I : I . l : 'l ... . I :: 1 ,. , , .~ : ~. '~ I . . f J l .. ,. oO ~. . .. ".. .., :r, 'J ~( ~l fi 311.017. Tennlnatfon of Reinvestment Zone (a) A reinvestment zone terminates on the earlier ot: (1) the termination date designated in the ordinance creating the zone or an earlier termination date designated by an ordinance adopted subsequent to the ordinance creating the zone; or (2) the date on which all project costs, tax increment bonds, and interest on those bonds have been :paid in full. (b) The tax increment pledged to the payment of bonds and interest on the bonds may be discharged and the reinvestment zone may be terminated if the municipality that created the zone deposits or causes to be deposited with a trustee or other eSCrow agent authorized by law funds In an amount that, together with the interest on the investment of the funds in direct obligations of the United States, w1ll be sufficient to pay the principal of, premium, if any, and interest on all bonds issued on behalf of the reinvestment zone at maturity or at the date fixed for redemption of the bonds, and to pay any other amounts that may become due, including compensation due or to , .become due to the trustee or escrow agent. Added by Acts1'98? 10th Leg., ch. 191,! 1. eff. Sept. 1. 1987. I e --- . I I I I 1311.016 Acts J989. 7isl Lee.. ch. 2. S 14.0'6(b), Vernon', Ann.Clv.St. art. 1066e. ~ 12. I . I . . - I . - e I,':..: ,:1. ..;-,r\ LOCAL TAXATION Title 3 - Prior Law,: Acts 1981. 67th Lea.. 1st ,C.S.. p. 45. ch. 4, f 1. HIstorical and Statutory Note. Acts 1983. 68th Lef., p. 3213. ch, 554. S 1. Vernon's Ann.Ctv.st. art. l066e. t 13. 312 ':::"Ii',rIj r-.-':1 Seetlon 312.001. 312.002. 312.003. 312.004. 312.005. 312.006. SUBC 312.20l. 312.2011 312.202, 312.203. 312.204. 312.2041 312.205. 312.206. 312.207. 312.208. 312.209. .' .., 1: SUE '.. . .. J.' 31.2.401. . , 312.401 : /!r.' 3 i 2.402, .. ~ Outdoor re: Schoold ~t See W I I I I I I I I I I I I I I I I I - e e VII. T.I.R.Z. IN ACTION SUISUN CITY, CALIFORNIA . - - - I I I I I I I W8Cln8Sday. September 6. 1995 87 lbe pro~ ~ Sulsun City's refurbished waterfront curls around the marina. SpecialID The Bee I What Suisun City knows about revivar~'. I Y OUR TOWN'S in trouble, so what about an aquarium, may- . be a speedway, a cinema com- pia? A riverboat c:asiDo may generate a few jobs. Or how about a big-bas. retail- er? The soberiDg ttuth is that city after city is c:basiIIg the same off-the-shelf solutioos. And even PEIRCE when the typical fixes work, the prof- its D.y out of town to big national c0rpo- ratiOns. Enter SuiSUD. City and what one could call the home-grown, self- help, SlJUlJ't4Jllars model Six years ago the old harbor town of 26,000, 44 miles east of San Francisco in fast-suburbaniziDg Solano County, was in deep trouble. Boarded-up store- fronts, vacant lots and auto-body shops poc:ked the town's historic Main Street. An oil-cl.istributiDg complex sat at the head. of heavil,y polluted and silted Sui- BUll Channel. Even worse, a post-World War II slum of fourplexes called the Crescent- ovenun by drug dealers - sat cheek by jowl with the old town center, A San Francisco Chronicle survey identified Suisun City as the wont plat:e to live in the Bay Area. Today, IS().year-old Suisun City is re- developing fast - its way. And the theme's a pleasailt one - new restau- rants and shops sprouting along Main Street, for example. where the city's fa- cade improvement program, is helping restore many long-neglected historic buildings. Credit for the revival is spread around from Mayor Jim Spering to Be- ~lopment Director and City Manag- er Camran Nojoomi to Boris Dramov of ROMA, a San Francisco design group. But the City Council and citizenry, fa. voring a revival to celebrate Suisun City's old-town Davor, created the polit- ical space for innovation. Nojoomi led in creating partnei'ships with private businesses. He sold the town on a tax-increment district to em. brace the entire city, Revenue increases I NE'AL R. I I I I I I . !!!! - not just' from downtown improve- ments but across the city - were com. mitted to payoff the $50 million in . bonds BOld to spark the inner-city rede- velopment projects. Nojoomi got full away to. experiment as the city's once separate housing and planning de- partments were put under his redevel. opment agency. Working to rede- sign the historic city, the ROMA group created a master plan to keep commercial spaces small enough so they'd be affordable to 'local finDs and entrepreneurs - and less likely to go to chain operations. THE CHANNEL at Suisun City- the name means "west wind" in the IanCuage of the Patwin indi- ans - was dredged in 1993. Rotting metal prefab warehouses were torJ!. down aDd a handsome waterfront promenade - eventually to be S.500 feet long - begun. A new ISO-berth marina, a new Town Plaza and Civic Plaza came into being (with all designs debated spiritedly, and openly, in the city), The old railroad station (circa 1910) was revived for intermodal use - pas- senger trains. Greyhound buses and Ci- tyLink bus service to Sacramento. Ordinary working-class folks in an old waterfront town (S7 perceDt white. 19 percent Asian. 17 percent Latino. IS percent African American) have begun to create a special environ~ent for themselves. The plan createS room for hometown entrepreneurs and navor. The faceless malls are left for surround. ing Solano County's suburbia. Some highly unconventional steps have been taken. Full urban renewal- simply leveling ~... slum area - has been politically un-- thinkable since the ,,' __ of the 'SOS;_ But Crescent pres~ ':.. ented such a cess- . pool of 1%ime, there ... had been talk of . erecting a wall be- . . tween its decayed . apartments and." downtown. Instead. Suisun..,. City demolished the. . neighborhood. The .., city agreed to subsi" .. dize residentsl. rents for four yelll'8r '. anywhere in North.. ern California. (Some leapt Cor the sub-,. ' sidy; others - likely connected to th~... dnJg trade - just disappeared.) A VICtorian Harbor project with tra- ditioaal architecture arose on the old CresceDt site. Leading the design work. Dramov went for one- and two-story: Crame houses with front porches in- . stead of driveways and big garage doors, Autos are c:oosigned to the alleys, . Streets are narrower than most new , communities, .but the sidewalks are- wider and there are more trees. It feels like a realneighhorhood - re- flecting the spirit of "New Urbanism." But here the neighborhood is in an in- ner city, Six years ago, a San Francisco Chronicle ,survey identified Suisun City as the worst place to live in the Bay Area. Today . the 150-year-old city is redeveloping fast - its way. IN A sense, there's no miracle to Sui- sun City. All it shows is that an American town. however dilapidat- ed and besieged. can revive. But it has to build on its strengths and shake up major parts of local government to reo flect lIew realities. Government and cit- izens need to remember that physical design is critical. and insist that it lit their city's special character. A city needs to remember the value of experimentation and the saying. no risk. no gain. Washington Post Writers Group Neal Peirce is a nationally syndicated columnist with the Washington POSI Writers Group, This anicle appeared in 4S American newspapers. including major daily papers in Sacramento. - . . _." , I I.'. _ _', __< >:-~,:t':'..'I.'f!;,~_. '...~'ig' .-- - --.Air. :#,.-' --~~<'!';ZC~... ..--;;:~':: "...,'"., ~.,,;~ ~ ~,~ . . ;:- I ",. ,. ,'. ...~.-:' ..~~; '-..~~:l<L... "~.,,,=.:- ,L~i~ ,,- :~ ._ " f.; ,of;{, .- I ~. '<;!'"'~ "l;T'~"'''''.:l1l::1").''':~ ':~~,,- -~. ~- ;"""'.,~..:;.... -li .......... .~:.: .. . :~.'....::., ~,.,."~;D::!::'J .i!!~~:! .t:(,:e{ ~:~>.:'>"" .L"'+rw ","~ "J :,_!.f.{':_'~:::":"'~ .::l..:;,..:t'~~'.1J':l;A4. ~~ :1'->1- !i,"~::~"~'~~~~~~:;:i~~-t;:' ~~-1 . UIS e .10....- New urbanism in the real world. '. ...~) ~, '1'-:5!lJl ''', ".~ q "''':::;.j .-0. ,'1 '3"~;-;5f.' ..,-.~~ ":-i:~_n, , ' ~-\:-t: J~:: ~~ ~ ~~ .g~: I FOr;] decade, the Florid;] town of Seaside inspired-:1nd led-new urb;]nism's ap- proach to town pbnning, gaining tremen- dous notorict\, in the media and accep- t:Jnce in the ~arketpbce. Se;]side showed that the p!:lnning of neighborhoods :lnd towns deserves the s:l.me attention :l.S the design of indi- \'idu;]l buildings. As the standard bearer for new urbanism (also known as neotradirionalism), Seaside h;]s alw:l.Ys pre- sented t\vo insurmountable dr:l.wbacks, A high-end development, it !:lcks a di\'erse popul;]rion. Nor is Se;]side an all-around town: it is a resort, Although the practice of new urh:.mism is meant to rcsh~lpe;: and hum;lnize merropoliran ;lr- e~IS. its principles have nor heen implemented on ;l large scale, The compkrion of rwo Jc\'c1op- ments that rctlect ncw urb~1l1ism 's planning ideals- I-.:cntbnds. ,\ bryland. oursiJe \ "ashingwn. D,C.. ;lnJ LJgun;l 'Vest ne;lr S~lt:ramc:nro. C~diforni;l- h~IS been slowed Jue;: [() rheir de\'elopers' tin;lnt:i;d prohlems, ~or ha\'e ncw ur!IJnislll"s print:iples (T;lnsfonned the cities ;\I1d suhurhs where most .-\.I1lcriGlnS live and WI Irk. Seaside. Kenrbnds. ;lnd L;lS'1.lnJ \ Vest :Ire new [owns or ourl~'in!? suhurh;ll1 developmenrs. ~ew urhanism's limited SUCCl:SS in the real world has c;lused 1Il;ln\' ardlltel..'ts ;lnd planners [0 worry I I I I I I I I 20 l.',.b"l/ 1..111,1 . ,\[.11' 1 '}')) I /' . ;~: ~~.t ,.~ . ., , - thJt unless its planning ideals are implemented more widely, they could become little more th:l.n :l collec- tion of architectural clichtEs-a frOnt porch here. :I. picket fence there-r:l.ther th:ln :I. working set of principles for reshaping merropolit:l.n areas and guiding future growth. But look wh;1t h:l.ppcned while no one W:l.S look- ing. One town-Sui:;un City. C:l.liforni;], with 26.000 residents located 4+ miles northeast of San FrJn- cisco in fast-growing Sobno County-took these principles to heart and h:l.s become ;1 showC"Jse of new urb:lnism: ;]n ethnicallv diverse \\'orkin"- ;lnd . ::> middle-cbss popubrion; a reinvented communitv r~ther than ;In ;11l-new developmenr; Jnd a rema;k- able eX~ll1lple of cooperation among city gm'em- ment. JrchitectS. pbnnc:rs, residents. 11ll:;]1 husi- nesses. Jnd reJI eSUte developers. In less than five ye;lrs. Suisun City hJS <:om- pleted O\'er hJlf;1 dozen redevdopmenr projects. \ Vorking dosd~' with S;ln F r:mcisc()-b~lsed R\)m;l Desi!,.'T1 Group. the Suisun City ReJen:lopmenr :\gency has bunt:hed the re\;v:!lof the historic ,\ bin Srreet. built the: Town Plaza. rehuilt the waterfront, replaced ~l crime-ridden slum wirh ;l traditionJI- Juokin!! pedestrian-oricnted nei!!hhorhood. :lllLI created;l functioning multimoda! tr;lnsit huh. l )ther redevdupment projects will be complcrec..l this ye:Jr ,!r Jre on rhe dr;l\\'ing hoard. ISUiSU/1 Cin' I~ ~till .l work ill I gress, Conti/1uing dear;lnce m\ l:onstnll:tion lIlab: (11;1/1\' 1;(' of ()IJ Tll\\'n .lOd thc nC:lr!I\' \ crfront look r:lW. 13m thc nc\\ I ' :.lIlist \ision h;ls :lln::ldv OCCO!llC 'c:llity in \';lrious l:olllplc:tcd llit:l:rs. ;lOd th:lt ic:ality is dC:lr!y I Cl:Css. How h:ls s01;l1l Suisun Cin' lln ;Ib!c to rC;llizc sUl.h f;lr:' , 'hing :101bitions? \\ nat ks- ( s Jot:s this work in progress lfft:r orht:r communirit:s? a"Tumin<T:l cin' around rt:- I es te;lm\~ork from a lot of dif- erent peopk" S;lYS Jim Spering, )or of Suisun Cin' since 1986. : t:se days. municipalities c;ln't 't: yon the coun~', thc: st:lte. or leder;ll government to bail out. lnste;ld, they have to be : tive, t;lke some risks, and put heir :ldv;lnt:Jges to good use," latio~, and History 'Suisun" me:lns "west wind" in llanguage of the P;lr\\'in Indi- ; who once li\'ed in this ret-rion. s 115-:Jcre cin' is nestled ;lmon!!' he rolling hills ~f ct:nrral Sobn; Inn', Its Old Town is loc:Jted I uisun Ch;lnnel; which is home o w:Jterfowl ;lnd fish, includinO' Ion :lnd srur!!eon, Seven mil~s hwest, the ch;lnncl empties mo Suisun and Grizzly bays. tonnecting point for tht: i ramento River and tht: S;ln , cisco Bay. T rut: to irs name. iuisun Ci~' is often gus~', p;lr- ilbrh- in the afternoon, Suisun Ci~' aburs the 8-+.000- Icre Suisun ~brsh. ant: of the II'on's largest narur;ll wetlands I ervt:s. \\'ildlife is aound;lnt 'e;lr-round. ThousanJs of migr:ltory hirds winter in Imarsh. Suisun Ci~' also h:ls a proud history. Senled in , I. it was a iumping off point for miners he:lJed <)r the Gold Rush ;lnu ;l tr:lOsshipment point for ,.ing C:lmp pro.\'isions ~rri\'ing: by ship from S;ln .CI~CO. The CI~' contlnuc:J to prosper;lS a port ':c:n alter thc: Gold Rush. sc:nding !!oods:from S;IO '(CiSCO to thc: growing numbc:;s ~lf inlind sc:nlc:rs I ,Ill rum. shlppmg thC:lr ;lgTlcutnlr:l1 producrs I livt:srock to B;lY ,.vt:a m;lrkc:ts. \\'ithin a dec:ldc: of its foundin!!, Suisun Cirv )IStcd woodt:n sidewalks, strc:c:r1ights. StC:;lm- . I L " " E .. " .. ~ c " " E @ The redevelopment concept for Suisun City includes rebuilding the Suisun Channel waterfront, remaking Main Slreet (one block west, or left, of the channell, creating the Town Plaza south of downtown, developing a marina. replacing a slum (east of the channen with a traditional neighborhood, and providing a multimodal transportation and employment center around a renovated railway station. powered Hour ;lnd lumber mills, c;lnnerie::s, W;lre- housc:s, ;lnd a busy waterfront, Shops, rest;luranrs, hotels. ;lnd b:Jnks lined ~Iain Street. one:: block west of the w;lte::rfronr, In 1869. the transcontine::ntal r:Jil- rO;ld linked Suisun Ci~' to the East CO;lst, Through the:: Second \VorId \Var. Suisun Ci~. rem;lineJ the bustling hub of :lgTiculrur:J1 Solano Coun~'. But its prosperi~' W;lS undermine::d by the:: trJnsportaoon switch from J":Jil to automobiles ;lnd trucks, \,ybc:n Intersmte 80 opc:ned in 1963. nt:;lrb\. F:lirfidd. where on- and ott-J":Jmp inrerch;lnges wer~ built. hc:c;lme thc: favored location for commercial Jc:velopmc:nr in thc: are:J. He::mmc:d in by F;lirfidd .\Ln' /99) . L'rb'lII L/lld 21 I to the: \\'e:st ~ll1d nelrth,.he: 1ll:1r~h to the: selllth, ~ll1d by Tr:l\'is Air Felrc~ :Ise to the C::1St, Suisul1 City could not exp:md its hound:lrie:s into the: p:lth /) f :.,,-owth. I Trouble in Suisun City By the 19:-\Os. Suisun City was stJring trouhle: in the fJcc:. \Vith mJny e:mpty storefronts. .\bin Stre:::t hJd become: :1 decaying bJckwJter. .-\t the: he::ld of Suisun Channe:1. an ugly oil rdinery polluted the channel's e:stuJry and nearby groundwate:r. Run- down :ll1d abandoned warehouses lined the channel, blocked access to the waterfront, and were a blight on ,\lJin Street and the historic residential district in Old Town. Several blocks Jway, the Crescent neighborhood hJd become an overcrowded crime- ridden slum, . The city also faced trouble on an entirely differ- ent flank, In the 1970s and 1980s. Solano County became one of California's fastest-growing regions, Suburban subdivisions and highway commercial de\'e1opment mushroomed, particularly along 1-80, Suisun City also grew rapidly, but only at its out- skirts along Highv,,'ay 12. Population rose from 2,917 in 1970 to 23,186 in 1990, By 2000, it is proj- ected to be 32.000. The bnd use pattern that emerged-devoted almost entirely to typical subdivisions bid out in culs-de-sac and served by automobile-filled <1rreri- als-threatened to ovem'helm not only Old TOVon's distinctive identity but also the city's budget. In California, residenrial development usually fuils to yield enough 'tax revenues to pay for the necessary. municip:lI services. Only commerci:ll development- particularly retail fuciliries, which generate sales tax re\'enues-provides net revenues to municipal budgets, I I I I I I Aerial photo taken in 11944 showing Victorian Harbor neighborhood under Ettion <Upper 'ool,the cleared Idon Oil refinery site Oelll. and the .~ site for the ~ Plaza Oower But 01,1 '.'n's run-dowl1 .\ hin Srrt:e:t and pol- lurc:d ch~.ll1ne: re: hanll~' :lppe::ding for l'Ollllllerci:d de:n:lelpllle:l1t, \'"or did cellllllle:rci:ll celnsmlnion b- \'or the: city's outskirts, be:clllse: elf their distance:- two mile:s-from I-xO. Suislln City hJd elne: of the: county's lowest sales tax re\'enue:s'per c:lpita. Throughout the: II)HOs. the c.:ity relied he:l\'ih- un one:-time residential de\'elopment fccs to me~t its budgct and funJ capital irnpn)\'cll1cntS, But the fet.:s were sporadic and the city \\'as bst approachinU' buildour. ,-\t the S:ll11t.: tirnt.:, n;ore ongoing city serv~ ices were needed for the incre:lse:d p~puL;tio~, The fiscal future looked bleak. Establishing a New Urbanism Laboratory Recognizing what was happening to their town. Suisun Cicy's people. businesses, and go\'cmme:nt wanted something better for the future, Sitting down together in 1989, thev ag-recd on a number of goals: -maintain Suisun Ci~v's-identit\' and small town characcer, preserve Old' Town's historic resi- dential neighborhood, recapture ~bin Street as the community's social gathering place, reopen the train station and reduce residents' dependence on automobiles, and strengthen municipal finances by bringing commercial development to Main Street :lnd the waterfront, "Suisun Cirv' did nor initialh- intend to be a labo- ratory for new ~rbanism's plan~ing principles," says Boris Dramov. a princip<11 at Roma Design Group, which formulated the redevelopment plan. "People came to favor new urbanism values, not to be parr of a mO\'ement, but to use the most effective mc:::ms to the desired end." In i'\ovembcr 1990, the city council adopted the Specific Plan, which the redevelopment agency car- ried Out throug-h an ag-g-ressivc and crearive u;e of its~powers- an extraordinary accomplish- ment. particularly in light of the fact that California was deep into a recession and real c::stace crash at the rime, "\Ve rurne:d that m:g:lti\'e into a positive," says Camr:m 0.'ojoomi, head of the redc::veloprnent agency. "Because of the awb\';lnl riming, the uncertain!:)' of the market- place. and the difficul!:)' that Je- velopers had in ohcaining their financing, we: decided nor co waic for a master de:\'clopa. \\'e de- cided to act as che m:lster de:.;d- oper Jnd hring in builders to han- dle individual-proiects," The components of the rede- velopment pbn char h:lve be:::n completed or :lrc suhsranri:llly underway include the following: I f...,'rbtlll Lmd . :\['lY 1')95 ..e. Town Plaza. To strengthen Main Street's role as the focal point of everyday life in Suisun City, pbnners created the Town Plaza off the south end of downtO\\TI on a site once occupied by empty lots and run-down prefab metal and tilt-up warehouses. The pbu consists of a grass semicircle ~ivided radially by patterned walbvays sloping toward a new waterfront promenade along Suisun Channel. It is equipped \\ith a granite and bronze st:lge are-.l and a gazebo, The redevelopment agency also purchased and demolished the warehouses along adjacent blocks lain Srreet Improvements. The rede\"elop- :nt agency is pursuing several strategies to remake IStreet into a distinctive location for commer- I rofessional, and ret:1il acti\ity. A dozen prop- :\" owners have renovated their buildings under a ;~c facade impro\'ement program. The redevel- 'Wnt agency has restored the historic and long- lpty Lawler House (circa 1 ~5 5). which is now led with office tenants, Sever:11 infill buildings are ;1 construction in accordance with the plan's 1 ate that new buildings be designed to comple- ::nt the historic buildings, I December 1994, the rede- I mentagencyannounced e reloc:1rion of Solano Commu- I" ollege's drama department , heater to the site of a for- . :lrket on :\lain Street, The lilding will be expanded from 10 to 14.000 square feet. anJ I incluJe three classrooms lubling as rehears;ll rooms. _a( small stages. anJ the . stage, hesc developments will 'I' <T gre:lter activity,to .\bin : t and the watedront. In I iparion. the redevelopment ency has built 120 IanJscaped I'ng: spaces. and it will com- another I ~o spaces by I (jl.l(;. IS(). the :Igem,~' has insuIled new 'If pipes ;mJ storm sewers w .\ lain Street. I ....".,~~~Jt~~lffJr{~1f1ltJi . .' "~.~.,;pCOifee:SMP.,"""",--"",,>,,,", ..... ....._~ "H'.,,,C1,, ,..,-:~~:;p:(~::t;h~~~~:~,;:~":-~~~~;;;i?~~..., ~ n "; ,',':;">}:::/ 7:!:1:\: ~I'~~I'+I~~_~';:J~ :,~ '... "/A ~l GL::J" ~ '~.., ; "";':'..>X /:A :~i: -=- ...', ,~.~: ~ ~ . :'.; c c ,. ~, "'.,;.. '.,>,.".\~ '~) ,..- I :tl>~"-"~'-~'----'-':J:;tl "~=~-:.1':~,':=':"':-~~':':~' ',." ::'.;..~:'.~ .~, ~~J~~1 '-~.'t;.;~. ~~~~~~~:~~ ." ';,' '."... L " .' ''':.'. "/ c~~ r""-'~'-H ~ ,~"-~"';;J Community ',.: '.< -.,~;:.;..~;~:.:,'::~: ".~7),. ~~''i) .~) .:... 00- I '..Jl'0 . ~'0 ~ i j .:'~.\:::..;:;;<":;:;:::':'''',.:'.,;~,:-.: f,/Town Plaza ;;-<"~.:';. :;-:~ '~n ~:?- .::j\: : X Theater .. ." .......' ..-.," " '. < ' r '"'1 '., I VI .-.-...,;.:". . ',:~it>~~:/t~~,~~~~~;.,~1~::.;)/ .' '_.., /~; :~~J! '~T-~1': "'_ i j .., ~i?d ", , "~1 '. r ., .,. , " L' ~~ ...., , I . . , ' :!1.~'~i.-l '-',<~J ~"..;-":'.,/ .~ ,r~, '" '4' Vii 00- .)', _., : - - : f/~~~~~~:~d!'.L~~~-~.:t ~;L.-~-:JJ -~~----~~\ ;), ':'41::3:'':'~'':-7:~ ' j'::) .:.;. I ,) l.lwlerHouse'i) ~ _,; ,.,."..., .~:, _'~~:\ _"'~ ~t\ '._, '-<' L..=..jj,:L~. 1 ~ ' . ::0 t!,~~~~ '"'!"Yri;;! -tfn-stte~tlCom~~~~.;;. ~~~~"=Z~ ..1::t.~~:~t:."t:::t.';~,b 'Fj,.~~~ . ~=::.:..-'~;:-~ .~.;.:.~~~ i il.:n;l"." View tram the east side 01 Suisun Channel toward the Town Plaza. down- town Main Street. and the marina, ; ~ Suisun City town center plan. ~ " ~ z u " 2 " C ~I . \.1'/)' 1995 . L 'rbtl 1/ LIIIII 23 I I I I I alleys in Victo. Harbor are no rthought Their design incorporates Is extending ralleet on both $I es, white picket fences separating tfrom the back- . and drive- ways large enough Irk two cars. ny units include rooms over the garages. I I Irian Harbor ebuyers give following rea- sons for having pur- E homes in I Suisun City: incflViduality of the houses, the Iltive changes in un, the Victorian e, proximity to the water. and tabifrty. I I I I Z4 I City is prot.g irs \'Ision oiJ sm;JII-SC;Jle d<lwn- town rhar st:. its n:siJents." S3YS DrJlllO\', "These sitt:s will ;JttrJct enrrepreneurd indiviJu;Jls. who will open shops ;JnJ rCst;JUr3nts th;Jt ;Jre truh- dif- ferent. They will give Suisun City ;J rC;J1 ;JJ\'J~tJge over the cookic-cutter mJlIs with their st;Jnd- Jrdized offerings." "V:lternoDt Improvements. In redeveloping the wJterfronr. the city tirst h;Jd to ;Jddress em'i- ronmentJl concerns, including- the dredgina ;Jnd ~ - :> widening of the silt-clogged Suisun Ch;Jnnd. which beg-Jn in 1990. "If vou don't have JITr:tctive n;lvi"':J- ~. , :> ble WJters, how CJn you market the surrounding land as water- front property to private com- merciJI and residential develop- ers?" asks Nojoomi, In FebruJry 1994, the city in- augurJted its I 50-berth marinJ. The CaliforniJ DepJrtmenr of Boating and \Vaterways, which hJd funded a fe3sibility study for the mJrinJ. also provided a $5.6 million COnstruction loan. Pay- ments on this loan are deferred until 1998, when the facility is expected to be fully leased. By the time payments come due, the agency will have built up a $2 million reserve fund to pro- vide a financial cushion for mJ- rina operations, ;IOJ laiJ out rebti\'dy ~. indi\idua( building pads. It hopcs that local busi. 's \\ill re!ocJte ;Jround the pbzJ, ;Jdding vibrJncy to the ;Jre;J. The new Sobno Community College thcater is less than a block aW;JY. B;Jbs' Coffee Shop. which JUSt opened. is the first business to rdoc;Jte on the Town Pin:!. Babs' is a 10CJ! instimtion whcre ne;Jrly 200 regulars have their own mugs with their n;Jmes h:lnging on \'ari- ous peg bo:!rds. Owner Babs Curless will live in ;In ;Jp;Jrttnenr above the rest:turanr, "By setting Jside sm;J1l building sites in key ar- eas like the Town PlnJ and Main Street. Suisun e ;; . o ,> ~ C'rbal/ Lmd . ,Hay 19Y) I'hl: llpl:nin~ of ,I w;Hl:rfrol1l pnlllll:n;ld.lll~ l:;lwall nl:;lr rill: Town Pb/;l in Jll1l1a. )()4 "krl:d SlIislIn Cin' n:sidl:lHs rht..'ir firsr al:Cl:SS ro l'h:llln<.:l in 50 n':;lrs, The .2:'-tt)(lr-\\"idl: \\";dl-:wav I ens the pbz:1 to rhe maril1:l'.; bo;lt Llunl:h ;llld , pl:destrians \'ie\\'s of the (:i\'il: Cenrer. the Iln-ro-be:-l:tlmpleted \ \';lterfront PJrk on the op- If' le:.lst) side: of the l'h:lllnl:1. and Suisun ,\l:.1rsh. 'or:.lti\'e: brJss Jnd iron rJiling- :111<1 traditlonJI ieet bmps line: the fulllengtli of the \\'Jlkw;l~'. Ihis ye:lr m:lrks rhe starr of the expJnsion of the . ;I onto dle Sh<.:ldon Oil refinery site::. r:lising umber of berths from 150 to .lOO. Shddon Oil IS removed 27 storJ~e t:mks and 160.000 cubic I>f contamin;lteu ;oil and is liable ti>r :lll~' fur- site cleanup neeueu, .\ I uch of the bnd :lrounu thc !Tl:lrin:l exp:lnsion 'Ias been cleared for future re::sidential :lllU com- ial uses. including shops :llld restaurants. The:: ome::nade evennlally will be:: exte::nded :lround :lll I sides of the channel w:lterfront, lcrori:m Harbor Neighborhood. The:: city : cd to :lddress the problems of the Cre::scent :ighborhood, locate::d two blocks east of .\bin It. "our biggest black eye," according to .\-byor lng, Twe::nty ye:lrs ago, in :l desper:lte :lttempt bring new life into Old Town. the:: city h:lu per- ild fourplex buildings-ofte::n no more th:ln ten p:lrt-on single::-f:lmily lots. By the:: mid-1980s, Ub dC:Iling :lnd crime:: moveu in. :lnd the:: Suisun it\' police force was spending h:llf its resources in Irescent neig-hborhood. ut of desper:ltlon, some:: Suislln Cit\, reside::nts oposed builuing a w:lll around the:: Cre~cent. In '1989, the city boldly rook :lnother :lppro:lch. redevelopment agency starred to purch:lse :lnd :molish the fourplexes. Bv 1992, it h:ld larg-elv :lC- I. d :lnd cle:lred the neighborhood. remo~in'g 470 I ~ng uni,ts at a COSt of $11 million, including rc- ~ JOn aSSlStance. ''.\lost. but not all. of the land]orus were:: de- :Id to be bought out. at approximatdy $1 00.000 ~ -+5,000 a buildin~, and most tenants were ca!!er get their relol::ltio; assist:lnce and leave." re::calls lw>mi. In fal:t. :lS .\byor Spering notes. :l tenant I.:ltion of ~is selle l::mnot reaJily Ol:cur without e support ot property owners and te::nants. the Redevdopmcnt .-\genl'Y sold the :lssemhlt:J to the San .\bteo. Caliti)rni;l-h;ISCU O'13rien p, whieh in 1 C}1).2 bc:!!:1O huildin!! sin!!le-f:lmilv lmes in :lccorJanl:c wi;h ROI11:I's s-j te p~bn :lnd ' '~ =-I'\I!.ddines for :l tr:ldition:t1 nei~hhorhooJ. .cJ \ letOr1;ln [-brbor beLluse ot Its resem- nee r( I Old T( lwn \ rurn-of-the-cc:ntJr\' homes Its location nC:;I~ the wJtert'ront. the ~ew neigh- I ool! marks ;1 milestone 111 thl: rell1\'entJOn ot .11 Suisun Cit\,. [n Scptc:mher'l eN.', (14 homc:s wcre put up for IAlthough California WJS mirc:d in its worst I Cl:ClllCllllic downturn sillt..'e rhe D~[."sion. .2-:- sold wirhin ;1 l110nth and only a handtu 1:1incd ullsold at thc: end of 11)1)4. 5ak pril:es ha\'e r:mged from :s 130,O()() to S I HO.OOO. on p:lr with most new entry- le\'e! housing in Sobno County. The homes r;lI1g-e in sizt: from two bedrooms with 1,100 squ:ln: fec:t to four beJrooms with I.HOO square fec.:t. ,'v[ost lots are: 45 hy 115 feet. or :l little less th:ln 5..200 squ:tn: fc:et, O\'cr 200 additional homes :lre pbnned in bter de- \'dopment phase::s: \'icrorian ~brbor incorpor:w:s some of new ur- banism's tlnest fe:lturc:s. induding tr:lffic-cllming dements like roundabouts, n:IITO\\'er-th:ln-CuStom:Il'}' streets. and cutout curbs to "hide" p:lrkeu vehicles. The one- and [\\'o-Story frame houses h:lve :l tr:ldi- tional style of architecture to complement the ne:lrby Olu Town residenti:ll district, \\'ith garages located off the landsc:lped allc.:ys be::hind the houses, the view of Victorian Harbor from the wide sidew:llks-which are lined with sap- lings and tr:ldirional streetlights-is of grassy frOnt- yards and porches. not concrete driveways and blank garage doors, A maintenance district, funded b:-' homeowners, C:lres for the trees, the pl:lnted are:J.s bet\veen the sidewalks :Ind streets, :J.nd the alleys. Tmin Surion. When the Redevelopment Agency bought the Suisun City r:1ilroad st:ltion from South- ern Pacific in 1991, the dilapidated structure was closed to the public, Fully renov:lted in 1992, the circ:l 1910 structure is the focal point of the new Rail Station Plaza-which includes :l landscaped pbza. a 7.500-squ;J.re-foot ret'.1il/office building com- pleted in late 1994. and surf:lce parking for 18 C:lrs- and provides ;J. vibr:mt gateway to the city. The station is one block west of ~bin Screet and [\\'0 blocks north of the m:lrina. The station also forms a \;tal center for multi- modal transportation. It is Amtr:lk's only Solano County station on the capitol corridor bet\\'een Sacr:lmento :lnd the Bay Area. In addition. it func- tions as :J. hub for the CityLink bus service, which connccts Suisun City to the Sacr:1mento area; :lnd as a Greyhouno bus st:ltion, ACCDmplishments Galore To rum its n:development vision into re:tlity, Suisun City I)\'crcame:: :l number of hurules, The first \\':lS the community's strong ske::ptieism th:lt Suisun City coulu pull off its :lmbitious plans. Another obst:lclc W:lS time. T:lking too long to formul:ltc :In action. warns :\'ojoomi. results in :l loss of sup- port :md momenrum: "\.Ve dc:\'dopc:J our pbn in only 13 months." But the most diHicult challen!!e:: W:1S :lssemblinl! the: lanu for the w:lterfront. .\ bill - Strc:e::t. ;lnd \'iCtl~- ri:l11 [ brhor proic:cts, ,-\ccording to .\layor Spering. this "re::quired true:: politil::ll wur:lge." [n the f:lce of owners who diun't want to sell or who W:lnte::u more .\IlI'y I'J'J) . L'rbilJ/ Lmtl 25 I lIIone\', hc !{OCS on. "\II'epr rhe f:.lirh in our pbns, sra\'ej rhe: ~ourse. :Jm de the rou!,!h decisions, SO;T1erime:s, one Of rwo of the: council-pcople would lose coural!C :md talter. But we could :Jlw:Jvs count on three sc;lid votes on the th'e-member c;luncil, so we could keep going ahe:Jd, build the projects. ;md little by little turn our plans into re:lliry," In the Novemher 19l)~ dection, Spering won re- election with two-thirds of the vote. :lnd his po~iti- c:l1 :lilies on the: ciry council were c:Jsily redected. Nored the: 10c:J1 Di/ily R(p(lblil~ "It's full speed :lhe:ld for ,\{:lyor Jim Spcring in his ambirious bid to :It- tr:lct businesses :Jnd tourists to Suisun City's reno- v:lted W:ltcrfront :Jnd Old Town." Suisun City h:ls dispbyed oue cre:ltivity in find- ing the funds to accomplish its redevelopment pro- gram. For some projects, it received money from existing government prOb'T:lffiS, such as a SCte grnnt to renov3te the tr3in sccon and a combin3con of sute 103ns to build the new m3rin:l. But most of the money for upfront COSts like bnd acquisition and infr:1structure improvements h:ls come through the sale of $58 million in munici- pal bonds to be repaid through ux increments. In July 1991, the encre city W3S declared a redevelop- ment are:l in order to, as Mayor Spering puts it, "capture t3X increment financing from projects happening all over town." The city refin3nced these bonds in 1993 to rake adv:muge of a dip in interest r3tes. l'iojoomi reports that the city's rating was barely invesonent grade (A-) and the interest rate W3S 7.5 percent when the bonds were sold in 1991. At refinancing, the r3te was 5.75 percent and the city obtained insur3nce for the bonds. Thus, according to Nojoomi. the city could borrow approximately $10 million more th3n in 1991. The structure of the redevelopment agency and the imagination and commionenr of its 16- person staff have been critical to the success of the master plan. "C:amr:m Nojoomi and the redevelopment agency have consistently acted as a public development corporation, noi: as a bure:Juctacy," S:lYs Dr3mov. "tVloreover, the agency has h:Jd the courage to stick with the master pbn. Developers th:lt h:lve offered to build projects :lccording to their own plans h:lve been told: \oVe want you to build that project, but we don't W:lnt st:Jnd:Jrd off-the-shelf development on (\-I:Jin Street (ir :Jround the h:Jrbor, \Ve want de- velopment that fits our community's unique condi- O(ms :md will bendit our residcnts :Jnd busin~sses for m:Jnv years to come. " Acc;)~ding to Nojoomi. the structure of th~ :Igcncy contributcs to its success, Upllnbecoming director in 19M!). he convinced the city to merge the rcdevelopment, housing, :lnd pl:Jnning :.Jgencie:s-to keep the pbnning dep:lmnenr from throwing road- hlllCks in the p:lth of the redevelopment :.Jnd to e:nlist I I I I I I I I I I I I . - - L',.btlll Lllld . . H,/)' 19l) 5 irs p:lrticiP;11 in "doin!! the pbnninor ti)r the rc- dc\'c/opmen . ....ency... F~rthermllre. the: director reports directly tel the city council, which, S:l\'S :'-illjoomi. helps keep up the intercst of the cou'ncil in rede\'e1oprnent issues. The: reuevelopment agency h:ls its own budget. on average $25 million a ye:lr. Sep:lr:lte from the cicv's SID million:l ve:lr hud!,!et. This :Jrr:ml!cmenr ~ .. - ... promotes the :.Jgency's independence :Jnd prevents the city from dipping into the redevelopment funds for other uses, Suisun City's sm:J1I size h:ls undoubtedly con- tributed to its envi:Jble track record in redevelop- ment. The city council h:Js been imp:ltient with red. tape. The city staff h:ls been strongly committed to the program. "During the pl3nning period and the property purch:lse and management period, City Hall was buzzing," recalls Mayor Spering. "The suff would work unci eight or nine at night beCluse they w3nted to." Among the various projects under construction or on the drawing board are the expansion of the marina, Vicrori:m Harbor's next phases, 3dditional market-rate and affordable housing in Old Town 3nd along the waterfront, the Sobno Community College the3ter 3nd classrooms on ."Iain Street, and the creacon of East \Vaterfront Park adjacent to the Civic Center on the former site of a sewage treat- ment plant. In all likelihood, the success of the redevelop- ment m:lster plan will attract more activity. Reuil- ers 3nd restaurateurs wiII move to Main Street. LOC:l1 oWners will renOv3te their commerci:ll and residential properties, and developers will construct new buildings on vaC:lnt lots along Main Street, the waterfront, and the marina. These p3rcels are alre:ldy attracting developer interest. In addicon, the city h:ls turned its attencon to Suisun City's more rypic:llly suburban sections, where it provided financial support for a iO-acre sports complex with a driving range and baseball diamonds and converted a public recreation center into a $3 million YMCA Family Center. Both proj- ects w~re co~pleted earlier this }'e:lr.. ./7' . SUlsun City h:1s taken new urbanism to heart m r: the creation of a vibr:mt, \'3ried, safe, and pedestri:m- (~ oriented placc for residents and busin~sscs. It is a (~ living, breathing prototype for new urb:lnism's de- '(1 sign principles. \;v}}en people tell you that new ur- I banism is a gre:Jt ide:l on p:Jpcr but will ne:....er work in re:lllife. tell them to catch the next train to Suisun City, .:. Charles Lockwood ;~, rbe ill/rhor OIJI.'".'f1I booJ.:r ,Ibollr .-111""';- (illIllrchire(tIl1'r 111111 ,'irieJ',