HomeMy WebLinkAbout1998-08-10 Regular Meeting and Workshop of City Council
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MINUTES OF THE REGULAR MEETING AND WORKSHOP
OF LA PORTE CITY COUNCIL
AUGUST 10, 1998
1. CALL TO ORDER
The meeting was called to order by Mayor Norman L. Malone at 6:05 p.m.
Members of City Council Present: Mayor Norman L. Malone, Councilpersons Guy
Sutherland, Chuck Engelken, Howard Ebow, Peter Griffiths, Alton Porter, Deotis Gay,
Charlie Young and Jerry Clarke.
Members of Council Absent: None.
Members of City Executive Staff and City Employees Present: City Manager Robert
T. Herrera, Assistant City Manager John Joerns, Assistant City ManagerlFinance
Director Jeff Litchfield, City Attorney Knox Askins, City Secretary Martha Gillett,
Assistant Director of Public Works Buddy Jacobs, Employee of the Year Jesus Gustavo
Alfaro, Employee of the Quarter Gay Collins, Parts Manager Mike Collins, Planning
Director Doug Kneupper, Chief of Police Bobby Powell, Director of Administrative
Services Louis Rigby, Assistant Finance Director Cynthia Alexander, Golf-Pro Alex
Osmond, Purchasing Manger Susan Kelley, City Manager's Secretary Carol Buttler,
Fire Chief Joe Sease, EMS Chief Chris Osten, Accounting Manager Kathy Hutton,
Solidwaste Superintendent Phil Webb and Assistant Fire Chief John Dunham.
Others Present: Spero Pomonis, Gordon Westergren, Fred Westergren, Linda
Westergren, Glenn Angel, David Angel, Bruce Angel, Steve Valarius, Colleen Hicks,
Doyle Westergren, Dr. Sawyer, Paul Mitchell and a number of La Porte Citizens.
2. The Invocation was delivered by Mayor Norman Malone.
3. Council considered approving the minutes of the Regular Meeting and Workshop
meeting on July 27, 1998.
Motion was made by Councilperson Engelken to aJ)j)rove the minutes of July 27. 1998
meeting as presented. Second by Councilperson Porter. The motion carried
unanimously.
Ayes: Engelken, Ebow, Porter, Young, Clarke and Mayor Malone.
Nays: None
Abstain: Councilpersons Sutherland, Griffiths and Ebow.
4. PROCLAMATION:
Mayor Malone presented the Clean Air Month Proclamation. There was no
representative present to receive the Proclamation.
5. PRESENTATION
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Council Meeting Minutes 8-10-98 - Page 2
Jeff Litchfield and Alex Osmond presented a plaque to Gay Collins and recognized her
as the Employee of the Quarter for April, May and June 1998. Mr. Litchfield and
Mr. Osmond noted that Ms. Collins is very deserving of this award and often goes
above and beyond the call of duty for her position.
Buddy Jacobs and Louis Rigby presented a watch to Jesus Gustavo Alfaro and
recognized him as the Employee of the Year for 1997. Mr. Jacobs noted that Mr.
Gustavo has been a dedicated employee of the City for eight years and has displayed an
outstanding attitude towards his job. It was noted that Mr. Alfaro has accepted a
position with the City of San Antonio and will be greatly missed in La Porte.
6. PETITIONS, REMONSTRANC~, COMMUNICATIONS, AND CmZENS AND
TAX PAYERS WISIllNG TO ADDRESS COUNCIL
Glenn Angel, 5210 West Rd., Baytown, Texas requested to speak during the Workshop
portion on Tax Increment Financing.
Spero Pomonis, 218 Bay Colony Dr., La Porte, Texas addressed Council regarding
their recent appointments to Boards and Commissions. He urged Council to better
screen candidates being appointed to Boards and Commissions. He stated he was not
pleased with recent appointments.
Steve Valarius, 140 Hazel, La Porte, Texas addressed Council on behalf of The Old
146 Committee. Mr. Valarius stated the committee is concerned about the future
development around the Bay Forest Golf Course. The Old 146 Committee would like
to see more upscale homes, which would enhance the area near the Golf Course. He
further stated The Old 146 Committee is not in favor of Tax Increment Financing.
7. Council considered an Ordinance authorizing the City Manager to approve a contract
between the City of La Porte and Dr. Oscar Boultinghouse, M.D., to serve as Medical
Director of the Division of Emergency Medical Services of the City of La Porte.
Fire Chief Joe Sease presented summary and recommendation.
City Attorney read: ORDINANCE 98-2270 - AN ORDINANCE APPROVING AND
AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND DR.
OSCAR BOULTINGHOUSE, M.D., TO SERVE AS MEDICAL DIRECTOR OF
THE DMSION OF EMERGENCY MEDICAL SERVICES OF THE CITY OF LA
PORTE; 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 G~ to approve the Ordinance as read by the City
Attorney. Second by Councilperson Engelken. The motion carried unanimously.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke and Mayor
Malone.
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City Council Meeting Minutes 8-10-98 - Page 3
Nays: None
8. Council considered an Ordinance appointing members to various Boards, Commissions,
and Committees, of the City of La Porte.
City Attorney read: ORDINANCE 98-2271 - AN ORDINANCE APPOINTING
MEMBERS TO VARIOUS BOARDS, COMMISSIONS, AND COMMITTEES, OF
THE CITY OF LA PORTE; PROVIDING A SEVERABll..ITY CLAUSE;
CONTAINING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE
OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF.
Motion was made by Councilperson Sutherland to table this item until the next Regular
Council Meeting. Second by Council person Gay. The motion carried unanimously.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke and Mayor
Malone.
Nays: None
9. Council considered approving the Consent Agenda including approval of a
contract with Superior Painting and Wallcoverings for painting the Fire Station
One/Fire Administration Complex and the purchase of Firefighter protective
clothing.
Joe Sease presented summary and recommendation and addressed Council questions.
Motion was made by Council person Engelken to ~prove the Consent Ae:enda as
presented. Second by Councilperson Young. The motion carried unanimously.
Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke and Mayor
Malone.
Nays: None
10. Mayor Malone called the Workshop Meeting to order at 6:28 P.M.
A. Discuss Tax Increment Financing
A lengthy discussed was held on Tax Increment Financing. Representatives from Hawes
Hill and Patterson Consultants, L.L.P, Vinson and Elkins, L.L.P. and Coastal Securities
presented information on Tax Increment Financing and answered numerous questions
from City Council.
David Hawes recommended if the City wishes to move forward with this issue, that it be
approached through a Master Plan approach. Within the Master Plan you look at the
various phases needed to carry out a project of this nature. It depends on who the
developers are and the boundaries of the zone as to which of several different options
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City Council Meeting Minutes 8-10-98 - Page 4
could take place. The Consultants would put together a preliminary plan to be presented
at a future Public Hearing. The Public Hearing would take place 60-90 days in the future.
Glenn Angel, 5210 West Road, Baytown, Texas addressed the Council and requested
they keep in mind all developers when considering Tax. Increment Financing. He urged
Council to keep a level playing field for all developers in the City of La Porte.
Council recessed for a ten-minute break: at 8:30 P.M.
Council reconvened the Workshop at 8:40 P.M.
B. Discuss Ambulance Rates
A lengthy discussion was held on increasing ambulance rates. It was noted the City's
rates have not been reviewed since 1992. After much discussion and questions,
Council directed the City Manager to prepare an Ordinance to increase ambulance rates
to be presented at a furore Council meeting.
11. Mayor Malone adjourned the Workshop Meeting at 9:05 P.M.
12. ADMINISTRATIVE REPORTS
City Manager Robert T. Herrera reminded Council Budget Workshop Meetings would
be held August 17-21, 1998. Mr. Herrera further noted that meetings have ended as
early as Wednesday in previous years.
13. COUNCIL ACTION
Councilpersons Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke and
Mayor Malone brought items to Council's attention.
14. EXECt1TIVE SESSION - PURSUANT TO PROVISION OF THE OPEN
Mlili",,'mGS LAW, CHAP1'ER 551.071 THROUGH 551.076, AND 551.084,
TEXAS GOVERNMENT CODE, - (CONSULTATION WITH
ATtORNEY, DEUBERATION REGARDING REAL PROPERTY,
DEUBERATION REGARDING PROSPECTIVE GIFf OR DONATION,
PERSONNEL MAlTERS, CONFERENCE WITII EMPLOYEES
DELmERATION REGARDING SECURITY DEVICES, OR
EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS
IN AN INVESTIGATION)
A. 551-074 (pERSONNEL MAlTER)
DISCUSS APPOINTMENTS TO BOARDS AND COMMISSIONS
Council did not retire to an Executive Session on this matter as it was tabled until the
next Regular Meeting.
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City Council Meeting Minutes 8-10-98 - Page 5
15. CONSIDERATION AND POssmLE ACTION ON ITEMS CONSIDERED
IN EXECUTIVE SESSION
16. ADJOURNMENT
There being no further business to come before Council, the Regular Meeting was duly
adjourned at 9:25 p.m.
Respectfully submitted,
1!J.~' AM
City Secretary
Passed and approved on this 14th day of September, 1998.
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City of La Porte
Administrative Services Department
Human Resources Division
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Director, Louis Rigby
MllnBger, Kimberly Meismer
SecretBry, Nicole HBtter
Interoffice Memorandum
From:
July 14, 1998
Martha Gillett. City Secretary ,J~ - .
Kimberly Meismer. Human Resources Manage~
Employee of the Quarter
To:
Subject:
Please place the following on the City Council Agenda for the meeting on August
10,1998.
Employee of the Quarter
April - May - June 1998
Congratulations to Gay Collins, Secretary II, for being selected as Employee of the
Quarter for April, May, June 1998. Gay was nominated by Jeff Litchfield,
Assistant City Manager/Finance Director and Alex Osmond, Golf Course Manager.
She was hired on May 23, 1994.
Jeff and Alex stated, U An employee who consistently goes above and beyond the
call of duty is Gay Collins. Gay is always willing to help, never complains, and
always has a smile and/or a funny word or two. She is eager to learn and does not
hesitate to take on a project/assignment that she may be unfamiliar with. She has
given up many Saturdays to come in and assemble Budgets, Annual Reports, etc.
in order to not interfere with the copying needs of others in City Hall. Her efforts
in this area saves the City hundreds of dollars per year.
Congratulations, Gay!
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City of La Porte
Administrative Services Department
Human Resources Division
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Director, Louis Rigby
MBnBger, Kimberly Meismer
SecretBry. Nicole Hatter
Interoffice Memorandum
August 5, 1998
From:
Martha Gillett, City Secretary ,I rJ\ t;"" )
Kimberly Meismer. Human Resources Manag~~Y , -
Employee of the Year
To:
Subject:
Please place the following on the City Council Agenda for the meeting on August
10, 1998.
Employee of the Year
1997
Congratulations to Jesus Gustavo Alfaro, Equipment Operator II in the Solid Waste
Division for being selected as the 1997 Employee of the Year. Gustavo became
eligible for this honor after being selected as the Employee of the Quarter for
January, February, March 1997. He was nominated by Phil Webb.
Phil stated, uGustavo has been with the City for eight years and has worked as a
garbage truck driver since December of 1993. He has an outstanding attitude
toward his job. His crew is usually the first one of three crews finished each day.
He often helps other crews that ,have fallen behind schedule. He maintains his
equipment extremely well and has had the fewest breakdowns in the Solid Waste
Division. Gustavo's crew always has the highest morale and the safest work
record. He is weU thought of in Public Works because of his attitude and
performance. (]ustavo is a dedicated and hard working employee and is truly
deserving of this honor.
Unfortunately, Gustavo has resigned his position with the City of La Porte to
relocate to San Antonio. His last day will be August 24, 1998.
Congratulations and good luck Gustavo! We'll miss youl
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REOUEI FOR CITY COUNCD... AGENDA .1M
Agenda Date Requested: August 1 O. 19~8
Requested By: 1. L. Sease f~ Department: Fire / EMS
/
_ Report _ Resolution ---X.-. Ordinance
Ordinance
Exhibits: Contract
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SUMMARY & RECOMMENDATION
The City of La Porte currently has a contract with Dr. Oscar Boultinghouse to provide medical direction for
The Emergency Medical Services. Dr Boultinghouse has done an outstanding job as medical director. Staff
reccomends that his contract be approved for another year.
Action Required by Council:
Approve the ordinance that will extend Dr Boulinghouse's contract for one year..
Availability of Funds:
.-X.. General Fund_ WaterlWastewater
_ Capital Improvement_ General Revenue Sharing
Other
Account Number: 00150595225005
Funds Available: X YES NO
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ORDINANCB NO. 98-2270
AN ORDlHAHCB APPROVING AND AUTHORIZING A CONTRACT BETWBBN THB CITY
OF LA PORTE AND DR. OSCAR. BOULTINGHOUSB, H.D., TO SBRVB AS HEDICAL
DIRECTOR OF THB DIVISION OF EMERGENCY KEDICAL SERVICES OF THB CITY .
OF LA PORTB; HAltING VARIOUS FINDINGS AND PROVISIONS RELATING TO THB
SUBJBCT; FINDING COMPLIANCB WITH THB OPEN HEETINGS LAW; AND
PROVIDING AN BFFECTIVB DATB HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
section 1. The City Council hereby approves and authorizes
the contract, agreement, or other undertaking described in the
title of this ordinance, in substantially the form as shown in the
document whi9h is attached hereto and incorporated herein by this
reference. The City Manager is hereby authorized to execute such
document and all related documents on behalf of the City of La
Porte. The City Secretary is hereby authorized to attest to all
such signatures and to affix the seal of the City to all such
documents.
section 2. The City council officially finds, determines I
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.
section 3. This Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
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ORDINANCE NO. 98- 2270
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PASSED AND APPROVED, this 10th day of August, 1998.
By:
ATTEST:
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APPROVED.: . r/j
txl?jt1/,~~
Knox W. ASkins,
City Attorney
CITY OF LA PORTE
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No man L. Ma 0 e,
Mayor
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CONTRACT FOR MEDICAL DIRECTOR
DIVISION OF EMERGENCY MEDICAL SERVICES
CITY OF LA PORTE, TEXAS
This Contract entered into this the 1st day of September, 1998, by and between the
City of La Porte, Texas, a municipal corporation (hereinafter called "City") acting by and
through its duly authorized City Manager, and Dr. Oscar Boultinghouse, M.D.,
(hereinafter sometimes called "Dr. Boultinghouse"),
WITNESSETH:
WHEREAS, there is a recognized need to provide high quality emergency
medical services and related medical care in the City of La Porte, Texas~ and
WHEREAS, the City desires to provide medical direction for its Division of
Emergency Medical Services through the use of a licensed physician~ and
WHEREAS, the City desires to contract with Dr. Boultinghouse to serve as
Medical Director for the Division of Emergency Medical Services of the City and Dr.
Boultinghouse is willing to serve as Medical Director under the terms and conditions
,stated herein;
NOW, THEREFORE, in consideration of the premises, the agreements herein
contained and other and valuable consideration, receipt of which is hereby
acknowledged, the parties hereby agree as follows:
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I.
MEDICAL DIRECTOR: Dr. Boultinghouse hereby contracts with the City
as an independent contractor to serve as Medical Director of the Division of the
Emergency Medical Services of the City (the "Medical Director") for the term stated
below.
II.
RESPONSffiILITIES AND AUTHORITY OF MEDICAL DIRECTOR:
The responsibilities and authority of the Medical Director shall be as follows:
A. General
(1) Ultimate responsibility for all medical issues concerning the City Division
of Emergency Medical Services.
(2) The authority to make decisions affecting all medical aspects of the City
Division of Emergency Medical Services.
(3) Being responsible to but not governed by the EMS Chief of the City of La
Porte.
(4) Inspect, evaluate and make recommendations regarding medical equipment
purchased by the City Division of Emergency Medical Services.
B. Education
Responsibility for developing, implementing and participating in continuing
education and recertification programs for paramedics employed by the City.
C. Evaluation
(1) Responsibility for qevising a system of ongoing review and education of
. paramedic services rendered by the City Division of Emergency Medical
Services and providing rapid feedback to the paramedics.
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D. Personnel
(1) Ultimate responsibility for evaluating the competency of all paramedics
employed by the City. The Medical Director shall have the authority to
revoke any paramedics from their authorization to utilize
protocols/standing orders.
(2) All paramedics employed by the City must be cleared by the Medical
Director before being permitted to provide emergency medical services to
the public.
E. Community Liaison
(1) Provide liaison with the medical community; respond to questions from
physicians about the City Division of Emergency Medical Services.
(2) Provide public information as necessary about the medical aspects of
emergency medical services provided by the City Division of Emergency
Medical Services; respond to medical questions from the media and the
public.
(3) Make appearances as reasonably necessary to educate those using the
emergency medical system about its function.
F. Protocols/Standing Orders
Develop and revise standing orders to be used by paramedics in the field,
monitor their use and make adjustments based on experience with these
standing orders.
G. The Medical Director shall devote such of their time as is reasonably needed
to fulfill the responsibilities and duties of the Medical Director of the City
Division of Emergency Medical Services under the terms of this Contract. It is
understood that the Medical Director will continue to engage in private
medical practice while not performing duties under this Contract.
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COpy
Term - The term of this Contract shall be for a period commencing as the date
hereof and ending on the 31 st day of August, 1999 or if sooner, with
the first to occur of the following:
A The death of Dr. Boultinghouse; or
B. Thirty (30) days following written notice by the City or by Dr. Boultinghouse;
provided, however, that prior to any written notice of termination under this
Section 3B by the City because of dissatisfaction with Dr. Boultinghouse's
performance as Medical Director under this Contract, the City shall convene a
meeting pursuant to written notice to the Medical Director setting forth the
basis for such dissatisfaction. At the meeting, which shall be held no sooner
than fifteen (15) days following such written notice, the parties shall attempt to
resolve any disagreements and conflicts.
IV.
Insurance - Throughout the term of this Contract, the City shall provide the
Medical Director with a policy on the minimum limits of three million dollars
($3,000,000.00) per occurrence and six million dollars ($6,000,000.00) annual aggregate
which covers the performance of their administrative duties as Medical Director. The
insurance policy shall provide that the City and the Medical Director shall be given thirty
(30) days written notice prior to any cancellation of this insurance.
v.
Compensation - In consideration for rendering the services of Medical Director
under the terms of this Contract, the City shall pay aggregate compensation at an annual
rate of Seven Thousand Two Hundred Dollars ($7,200.00).
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VI.
C@[P1f
Independent Contractor - This Contract shall not be construed as creating an
employer/employee relationship, a partnership, or a joint venture, since the intent is that
Dr. Boultinghouse shall be an independent contractor with the City. No party hereto shall
hold himself or itself ou~ or act as an agent of any other party with respect to third parties
In anyway.
VII.
. Governing Law - This Contract shall be governed in accordance with the laws of
the State of Texas and shall be performable in Harris County, Texas.
IN WITNESS WHEREOF, Dr. Boultinghouse and the duly authorized
representative of the City of La Porte have executed this Contract as of the date and year
first above written.
CITY OF LA PORTE
DIVISION OF EMERGENCY MEDICAL SERVICES
Q~t T ~~.J
Robert T. Herrera
City Manager
City Of La Porte
Mi)
Dr, Osc Boultinghouse, M.D,
Harris ounty, Texas
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Date
Date
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~(())S11:I
ORDINANCE NO. 98-
AN ORDINANCE APPOINTING MEMBERS TO VARIOUS BOARDS, COMMISSIONS, AND
COMMITTEES, OF THE CITY OF LA PORTE; PROVIDING A SEVERABILITY
CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE
OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council of the City of La Porte hereby
makes the following appointments to the Board of Adjustment, for
terms expiring on May 30th of the year indicated, or until their
successors shall have been duly appointed and qualified:
Alternate 2
section 2. If any section, sentence, phrase, clause or any
part of any section, sentence, phrase, or clausel of this ordinance
shall, for any reasons, be held invalid, such invalidity shall not
affect the remaining portions of this ordinance, and it is hereby
declared to be the intention of this city Council to have passed
each section, sentence, phrase or clause, or part thereof,
irrespective of the fact that any other section, sentence, phrase
or clause, or part thereof, may be declared invalid.
section 3. All ordinances or parts of ordinances in conflict
herewith are repealed to the extent of such conflict only.
section 4.
The City Council officially finds, determines,
recites, and declares that a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was
posted at a place convenient to the public at the City Hall of the
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
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matter thereof has been discussed, considered and formally acted
upon. The City Council further ratifies, approves and confirms
such written notice and the contents and posting thereof.
Section 5. Tnis Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
PASSED AND APPROVED, this 10th day of August, 1998.
CITY OF LA PORTE
By:
Norman L. Malone
Mayor
ATTEST:
Martha A. Gillett
city Secretary
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Kno . Askins
City Attorney
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CONSENT AGENDA
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REOUEST FOR CITY COUNCIL AGENDA ITEM
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1IiIi!Ii--hl;;;~!iIii.i~~~II:'::.=mtm-
Agenda Date Requested: 8- 0-9
Requested By: lL.Seas
X Report _ R s
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Department: Fire
Ordinance
Exhibits:
Ordinance
Bid Tabulation
Memo
I"'.' "'1"}~jl~..r-'t~'t-<-.'-t(.,mtR~~lJ<'A~~~~t.::i:~!JM;1~~.I'_.r~4~...e:k~~llw.~~5:-~~~~mi..!.Ilt-Ji~~~li(ti,Qi..t}l '_\,'Jf~l.,~"'\J",._t l~ II \ I' ~
SUM1\1:ARY &. RECOM-MENDATION
Advertised sealed bid #0747-Painting of Fire Stations-rebid, were opened and read on July 20, 1998. The project consists of
painting the Fire Station OnelFire Administration Complex, and Fire Station Three. Bid requests were mailed to five vendors,
with two returning bids.
Low bid meeting specifications was submitted by Superior Painting and Wallcovering,lnc, in the amount on 18,005.00,
Currently there is $ 15,000.00 in the Fire Department Capital Outlay budget. An additional $4005.00 will be transferred from
the General Fund Contingency Account to cover the amount over budget, and to provide for a 5% contingency for the project
Action RequiJ'ed by Council:
Consider approving a contract with Superior Painting and Wall coverings, lnc, in the amount of$18,005.00,
11 .. "''lr<''~fll~~-1.i,'p,-~<...tI;~~~'~i~(~~~fi,J,q!~~''*~.;llr"l~~~[~~*~~:::.~:;~~~:~~~1-""~'~'''-~.~~~~f~f.~\''f1'4j~;; 1''";.,"1-''-I'r ;: '1.-;;f1~- -",' I \l-.
Availability of:Funds:
--2L General Fund_ WatcrAVastewater
_ Capital Imp."ovement_ GcneralRevenue Sharing
Other
Account Number: 001-5051-522-8002_ Funds Available: X YES NO
Approved for City Council Ae:enda
Q~T.~
Robert T. Herrera
City Manager
o.~~. .. 1'l.4\~
Date
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PAINTING OF FIRE STATIONS - REBID
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PAINTING & ASSOCIATED
DESCRIPTION QTY WALLCOVERING PAINTERS
1) Painting of Fire Station #1 1 $13,947.00 $17,029.00
2) Painting of Fire Station #3 1 $4,058.00 $6,063.00
TOTAL $18,005.00 $23,092.00
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TO: ROBERT T. HERRERA, CITY MANAGER DATE: 7-28-98
FROM: JOHN C. DUNHAM, ASSISTANT FIRE CHIEF ~
SUBJECT: FIRE STATION PAINTING PROJECT
DURING THE 1996-97 BUDGET YEAR, THE FIRE DEPARTMENT HAD
FUNDS BUDGETED FOR EXTERIOR PAINTING OF THE FIRE STATION
ONE COMPLEX IN THE AMOUNT OF $9000, AND $6000 TO PAJNT FIRE
STATIONS THREE AND FOUR.
DURING THE HEAVY SPRING RAINS, WE EXPERIENCED SEVERAL BAD
LEAKS, WHICH REQUIRED THE HIRING OF A PROFESSIONAL LEAK
TESTING AND REPAIR COM:PANY. SUBSEQUENTLY, THE BUDGETED
PAINTING FUNDS WERE USED TO PAY FOR THE :LEAK TESTJNG AND
REPAIR.
ONCE ALL THE LEAKS WERE LOCATED AND RE'PAIRED, WE FELT THAT
THERE WAS NOT ENOUGH TIME TO GO OUT FOR COMPETETIVE BIDS
FOR THE PAINTING PROJECTS. THEREFORE, $9000 WAS
ENCUMBERED TO THIS YEARS BUDGET TO CONTINUE THE PAINTING
PROJECTS.
SEALED BIDS WERE OPENED ON JULY 20, 1998, FOR THE FIR.E STATION
PAINTING ,PROJECT. BID REQUESTS '''ERE MAILED TO FIVE VENDORS,
WITH TWO RETURNING BIDS. THE LO'" BID MEETING SPECIFICA TIONS
WAS IN THE AMOUNT OF $18,005, WHICH IS $3005 OVER THE BUDGETED
AMOUNT.
WE WOULD LIKE TO PROCEED WITH THE PROJECT, AND REQUEST
THA T $4000 BE TRANSFER ED FROM: THE GENERAL FUND CONTINGENCY
ACCOUNT, TO COVER THE OVERAGE AND TO PROVInE FOR A 5%
CONTINGENCY FOR THE PROJECT.
IF THIS IS ACCEPTABLE, PLEASE MAKE THE NECESSARY BUDGET
TRANSFERS, AND WE CAN PROCEED WITH THE AGENDA REQUEST TO
GO TO CITY COUNCIL TO AWARD THE BID.
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REOUI- :FOR CITY COUNCIL AGENDA 11M
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Agenda Date Requested:
Requested By: J.L.Sease ~ D partment: Fire
X RepOI.t _ :Resolution _ Ordinance
Exhibits:
Ordinance
Bid Proposal
Letter from Cairns
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SUMMARY & RECOM-M~NDATION
Advertised sealed bid #0745-FiJ"efighte.' Protective Clothing, were opened and read on July 27, 1998. Bid
requests were mailed to th.'ee vendors with one returning a bid. Four Alarm Fire Equipment, is the sole source
vendor in ollr area for the protective equipment we have specified and standardized on, as stated in the attached
letter from Cairns.
Action Required by Council:
Award bid for Firefighter Protective Clothing to Four Alarm Fire Equipment as supplier for the above specified
equipment, in the amount of $23,700.00.
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Availability of "Funds
---X- General Fund_ ''''aterlWastewater
_ Capital Improvement:.- General :Revenue Sharing
Other
Account Number: 001-5051-522-2003 Funds Available: X. YES NO
Approved for City Council Aeenda
G1>~ T. ~
Robert T. Herrera
City :Manager
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Date
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810 PROPOSAL
TO
CITY OF LA PORTE, TEXAS
TO: CITY OF .LA PORTE
PO BOX 1115
LA PORTE TX 77572-1115
FROM: COMPANY Fpl//C /JLA~ n/2C L!ZJu/,o.
ADDRESS 3.:)00 S. I?I&/rc~ #' / ~o
CITY "#0(/:;70,,..1 ,~- '770/ 7
STATE/ZIP /
PHONE L-8a:?-7!iJ?-o~ y:.-
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ITEM NO. OF UNIT TOTAL
NO. DESCRIPTION UNITS PRICE PRICE
#5S8~ t:JO
1. BUNKER COATS 25 /3;9SlJ7
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2. BUNKER PANTS 25 ~ ~qtr--- 9, 7SlJ-r
TOTAL
Oversize charges for pants (Specify sizes)
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#CJA,/E
Oversize charges for coats (Specify sizes)
- r/2T /5 //V~?L4ac--V
IT IS UNDERSTOOD AND AGREED THAT THE ABOVE DESCRIBED ITEM, MATERIAL,
EQUIPMENT, AND/O,R WORK SHAL.L CARRY THE STANDARD WARRANTY OF THE
MANUFACTURER AND BE DELIVERED ON SITE IN ACCORDANCE WITH THE ATTACHED
SPECIFICATIONS IN 25:.. DAYS, ARO.
THE UNDERSIGNED CERTIFIES THE BID PRICE CONTAINED IN THE FOREGOING PROPOSAL
HAS BEEN CAREFULLY CHECKED AND IS SUBMITTED IN DUPLICATE AS CORRECT AND
. ......
FINAL THIS ;2 // DAY OF e,..J'u L-// I 1998
1\ \lJ,1\ ~i/iV
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LESLIE (COOTIE) McNULTY
~ OFFICER, (Printed name)
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OFFICER (Signatur )
/bw4 A/I7e/l~ h/&' Et?H /,4
. COMPANY
JLL 2B'98 12=B2P\1 CAIR/'lS CLOIHING
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.PROTECTIVE
. CLOTHING
I!AVIYr ROAD, p.o. lOX 125 .. PlTtlmm, NH 032di1.o1 U · TEL: 603 43mD7 . fA)(: 60a 435-7876
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July 28, 1998
Ms Susan Kelley
Purchasing Agent
La Porte Ffre Department
La Porte, Texas
Dear Ms Kelley,
Please be advised that Four Alarm Fire Equipment Is our primary
dealer. In southem TexIs and Is authorized to sell our products.
. He has flIlthfully represented and supported Calms Protective Clothing
. to many fire departments In Texas.
If yoU hive any questions, pleBse teef free-to give me a call.
I Sincerely,
~~~
George R. Boggls
Division Manager
^ DMJICN Of IJ&OII!MANIJMcMJNcJ co.
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June II, 1998
To:
The City Council
City of La Porte, Tex~
Subject:
Preliminary information and documentation preparatory to a workshop for the
master planned community of Bay Forest, including the financing under State Law,
Chapter 311 of Texas State Legislature known ~ a Tax Increment Re-
Development Zone or T.I.RZ 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 Hams
County, plus the House of Representatives and the State Senate indicating each of them is ~
favor of this project and await the request from the City of La Porte to join with them in the
fonnation of the T.I.RZ.
A copy of this package h~ 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
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City of La Porte
Established 1892
July 13, 1998
Mr. Fred Westergren
P.O. Box 610
La Porte, Texas 77572-0610
Dear Fred,
Please be advised that the workshop scheduled for July 27, 1998 on a proposed Tax
Increment Financing project has been delayed and moved to August 10, 1998.
I have been advised by the La Porte City Coun~il that at least two Councilpersons will not be
present at the July 27, 1998 meeting. Council felt that this discussion was important enough that a
full Council was needed to hear, the presentation.
I hope this change does not cause you a problem, and I look forward to the August 10
workshop. .
Sincerely,
cx~ T, ~
Robert T. Herrera
City Manager
C: Mayor and Council
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P.O. Box 1115 · La Porte, Texas 77572-1115 · (281) 471-5020
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CITY OF LA PORTE
E.M.S.
PROPOSED RATE
I'NCR'EASE
1998-1999
BUDGET YEAR
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City of la Porte
Emergency Medical Services
Rate Discussion and Proposal
The City of La Porte operates an Emergency Medical Services (EMS) Division which provides
emergency life support services at the basic and advanced level, as well as transport and
medical intervention en route to qualified medical facilities.
The EMS operation is funded from three sources. First, user fees are charged to those who
utilize the services of the division, the City has stated contracts with industrial and other clients
and the difference is paid for by property taxes.
At this time, the operation is paid for in the following manner: Patient Billing Fees 18%;
Contracts 8%; and Taxes 74%.
The fee structure of the EMS operation has not changed since 1992 however, our costs have
risen dramatically (51%, from $696,000 to $1,056,000). There are several reasons for this
increase, including:
. There have been significant increases in the cost of our medical supplies, both expendable
and non-expendable (for example, ambulances now cost $20,000 more per unit than in
1992).
. We increase our in-the-field staff by 3 employees, or 25% to better handle the work load
caused by the 44% increase in call volume.
. Because of our rate structure, there are new medications and new procedures that were not
available six years ago and accordingly, we have no authority to bill the patient for these
services.
We have conducted a survey of local EMS service providers to determine the rate structures
currently in place. A copy of the survey is attached. All providers surveyed are similar to ours in
that they are public providers In almost all instances, it is apparent we charge less for our
services, this is attributed to our not changing rates in the last six years.
In the last column of the survey, you will find the proposed rates for the City's EMS operation.
One area of interest is in the Treat no Transport fee. This is a new fee to our operation.
Currently, if we are called to a scene to administer aid to an individual and the individual either
does not need to be transported or does not want to be transported, we have no way to bill the
individual. This fee would allow the City to bill for compensation for the costs incurred to take
staff and equipment out of operation and place them on the call.
Attached is a chart that shows the projected impact of the new billing rates on an average bill for
a patient transported. We find that the average bill will increase from $248 to $569. The total
impact of this increase on our revenues is an 87% increase. This would increase the Patient
Billing Fee portion of our revenues from the current 18% to 34%.
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While this appears to be a large increase at one time, we ask that you consider the following
factors:
> We have not increased our EMS rates in six years
> A large percentage of the Patient Billing Fees are paid for by Insurance Companies and they
are currently paying higher fees to other entities.
In closing, we ask that you consider the increases that are proposed in the attached survey. We
believe these changes will allow the City of La Porte to continue its provision of award winning
(EMS provider of the year in 1993) service to its citizens.
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City of La Porte EMS
Patient Call Report
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2,023
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3,000
2.500
2,000
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CD 1,500
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1.000
500
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1997
1996
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1994 1995
1992 - 1997
1993
1992
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EMS Cost/Billing Averages and Proposed Averages from EMS Budget
$569
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D Proposed Average Bill for Patient Transported
o Current Average Bill for Patient Transported
$600
$500
$400
$300
$200
$100
$0
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City of La Porte EMS
Actual Revenues Compared to Proposed Rate Increase
1/1/97 - 12/31/97
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El Projected Revenues from Proposed Rates
. Revenues 1/1/97 - 12/31/97
$359,299
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$400,000
$350,000
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$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
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La Porte'.M.S.
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Ambulance rate comparison
Base rate 150,00 175;00 375,00. 325.00 225.00. 470.00 250.00 250.00 277.50 350.00
Hourly 40.00 25.00 68,00 100.00 58.25 50.00
rate
Mi1eae:e 2.50 5.00 9.00 5.00 7.50 8.40 7.50 5.00 6.23 6.50
Life flight 150.00 225.00 + 470.00 = 281.66 350.00 +
Other . . cost of cost of supplies
X-DOrt supplies supplies
Infection 15.00 50.00 42.00 50.00 39.25 50.00
control
Spinal 25.00 75.00 40.00 46.66 40.00
immob.
ECG 15.00 150.00 60.00 Als chare:e 75.00 50.00
02 setup 15.00 85.00 30.00 38.74 36.00 40.00 35.00 39.96 35.00
MAST 10.00 150.00 37.00 65.66 40.00
C.P.R. 10.00 140.00 30.00 50.00 50.00 56.00 50.00
Blood 10.00 19.00 10.00 7.00 10.00 11.20 20.00
draw
IV set 20.00 75.00 35.00 35.00 33.00 37.50 25.00 37.21 35.00
Bandage 20.00 13.00 30.00 25.00 22.00 20.00
Per site.
ETIEOA 15.00 130.00 10.00 60.00 30.00 15.00 50.00 44.28 50.00
EGTA 50.00 50.00 30.00
OB kit 25.00 40.00 17.20 25.00 26.28 25.00
1.0. 40,00 55.00 47.50 75.00
B.V.M. 25.00 39.00 25.00 50.00 34.75 50.00
Suction 15.00 50.00 15.00 20.00 25.00 25.00 25.00 25.00
Splinting 10.00 40.00 10.00 30.00 22.50 20.00
Per site
Narcan 10.00 15.40 12.00 17.00 10.00 12.88 15.00
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Ambulance rate comparison
Thiamine 10.00 10.00 7.15 15.00 10.00 10.43 15.00
D50W 10.00 1O~ 00 7.01 20.00 33.00 10.00 15.00 15.00
Benadrvl 10.00 10.00 6.10 ]5.00 6.00 10.00 9.51 15.00
Atropine 10.00 10.00 6.78 45.00 21.00 10.00 17.13 15.00
Bi carb 10.00 7.40 15.00 24.00 10.00 13.28 15.00
Epi 10.00 10.00 10.00 15.00/mg 3.00 10.00 9.66 15.00/mg
Iml!!ml
Epi 10.00 10.00 10.00 15.00/mg 24.00 15.00 14.00 15.00
]ml!!1Oml
Dooamine 10.00 16.00 10.60' 30.00 70.00 25.00 26.93 . 30.00
Lasix 10.00 10.00 6.23 30.00 8.00 20.00 14.03 15.00
Valium 10.00 10.00 7.08 30.00 10.00 30.00 16.18 15.00
Nitro 10.00 10.00 22.76 15.00 10.00 10.00 12.96 15.00
Charcoal 10.00 9.20 21.00 13.40 15.00
Momhine 10.00 6.14 12.00 10.00 9,53 15.00
Lidocaine 10.00 10.00 6.64 30,00 40.00 10.00 17.77 15.00
100/m~
Lidocaine ]0.00 10.00 8.55 30.00 70.00 15.00 23.92 15.00
2~500m
Instant 10.00 15.00 10.00 11.66 15.00
G]ucose
Tetracine 10.00 7.73 8.86 15.00
Adenosine 10.00 30.00 26.74 40.00 45.00 35.00 31.12 50.00
A]buterol 10.00 15.00 10.00 12.48 15.00 15.00 12.91 15.00
Mannitol 10.00 21.00 14.88 60.00 86.47 50.00
Ioecac 10.00 15.00 10.00 8.33 15.00
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Ambulance rate comparison
La Porte EMS
New procedures previously not charged
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Pac~ - . 60,00 80.00 50.00. 66.25 75.00
Nublizer 12.27 36.00 35.00 27.75 35.00
IV Fluids 12.00 21.00 15.00 17.00 20.00
Treat, no 175.00 +
x-DOlt. supplies
Burn sheet 20.00 10.20 18.00 25.00 18.30 20.00
Lavage 150.00
Kit
Chest 50.00 50.00 50.00
decompres
Glucomete 36.00 6.25 25.00 22.41 15.00
EKG oads 30.00 10.00 3.00 25.00 25.00 18.60 15.00
D-fib 275.00 10.00 60.00 80.00 50.00 91.66 75.00
SA02 47.00 5.00 27.33 20.00
Auto vent 25.00
Saline 18.00 33.00 25.00 25.33 35.00
lock
Surg. 120.00 120.00 120.00
Airway
Solu- 6.10 15.00 10.55 15.00
Medrol
Mag 15.00 15.00 15.00
Sulfate
Retro 125.00
Intubation
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La PorI\.' Ahin ,\ngleton Ba~lo"n Fl. lknd Gah\.''oton C\.'nlral 1I11mhle "\\I,-,ra!.',\.' Propo'ol'd
EMS L,I PorII.'
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m 10.00 15.00 12.50 15.00
I I I I 50.00
15.00
50.00
50.00
50.00
15.00
48.00
La PortA.M.S.
Ambulance rate comparison
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15.00
15.00
48.00
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Bretyliu
Versed
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Vasotec
Glucagon
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MEETING HANDOUTS
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EAST HARRIS COUNTY MANUFACTURERS ASSOCIATION
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People · Products · Safety · Support
August 6, 1998
The Honorable Norman Malone
Mayor, City of La Porte
City Hall
,-Po O. Box 1115
La Porte, TX 77572-1115
Dear Mayor Malone:
Last week an environmental activist group issued a report pointing out potential risks of
chemical industry operations along the Houston Ship Channel. The report called attention to
the group's request that ... more regulation be imposed on industry to ensure improved safety
and industry communications with communities.
Existing rules coupled with our safety programs and community outreach efforts have
demonstrated effective results. We are concerned that additional regulation imposed to
advance the agenda of a special interest group would only dilute ttJe effectiveness of' already
established programs. '
I hope that through your relationship with our industry you know that day-in day-out, year-in
year-out, East Harris County Manufacturers Association (EHCMA) members strive diligently to
operate safely and continuously improve by implementing preventive measures, one such being
OSHA's process safety management process. Through the leadership of OSHA's Ray Skinner,
OSHA has worked closely with industry and labor to implement process safety management
which has resulted in fewer worker injuries.
EPA promulgated a Risk Management Plan (Worst Case Scenario) rule some years ago which
extended the philosophy of OSHA's process safety management principles of hazard
assessment, prevention and emergency response to communities and communities' right to
know. As you know, EHCMA has been working with citizens to plan an efficient and effective
grass roots communication program to discuss RMP with our neighbors in early 1999.
For more than a decade, EHCMA member companies have fostered open dialogue with our
communities through active participation in Local Emergency Planning Committees as well as
Community Advisory Councils ,-- local citizens and community leaders who meet monthly with
plant managers to discuss i.ssues, such as safe operations and environmental protection.
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I hope that through your interaction with our industry, you fully understand that this recent "call
for regulation" relates to issues that are already being worked by our industry along the Houston
Ship Channel. It is unfortunate that the activist group chose to dramatize potential disasters to
gain attention for concerns that are already being addressed without so noting. We think it is
more important to focus on industry's track record of managing risks associated with our
operations, something we have ~one in these Ship Channel communities for more than 75
years. We know continuous improvement of our operations is imperative, thus the reason we
have embraced programs like OSHA's process safety management and EPA's risk
management plan.
If you wish to discuss any item related to this recent environmental report on the Internet, please
call me at (713) 246-7146 or our EHCMA Communications Chairman, Dennis Winkler, at (713)
246-6151.
Sincerely,
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J. D. Johnson
Chairman
EHCMA
cc - J. Coe, Rohm and Haas Texas, Inc.
D. E. Winkler, Shell Deer Park
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I TAX INCREMENT FINANCING (1fIF)
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I CITY COUNCIL WORKSHOP
I AUGUST 10, 1998
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CITY OF LA PORTE
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August 6, 1998
TO:
Mayor and City Council
FROM:
Robert T. Herrera, City Manager
Q~,.~
Tax Increment Financing (TIF) Workshop
SUBJECT:
For your reading and study I have put together a packet of information. The enclosed
material is intended to support your understanding of TIF's, their common uses, and
questions that require some insight.
I assume that Monday's Workshop on the proposed TIF that has been submitted by local
developers is to educate and sl18re with the City their proposed project. Base on what I
have read, their material is still in the preliminary stages, and many questions remain
unanswered. I hope the meeting sheds more light on their project plans and their
reinvestment zone financing plan.
Council will be asked by the developers to consider a policy decision on the use of
residential .TIF's for their development. Please keep this thought in mind so staff will
know how to proceed.
At the conclusion of the Workshop, Council will need to give direction on this matter so ~
that the developer and City staff know how to proceed.
RTH:cjb
Enclosure
c John Joems
Jeff Litchfield
David Fetzer
Paul Martin
Knox Askins
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OUTLINE
I. The ABCs of TIF - Article
ll. Questions on Proposed TIF
ill. Developer Response to Questions
IV. City Attorney Respon'se to Questions
V. Bond Counsel Response to Questions
VI. Fiscal Advisor Response to Questions
VII. Staff Response to Questions
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ABCs OF TIF
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The ABCs of 'IF
By Lolita Sereleas
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Tax Increment Financing (TIF) became a household term for
economic developers when it emerged as a popular tool to
facilitate development and combat urban blight in targeted
areas. Local governments use TIF programs for land
procurement and to pay for public improvements that suPPOrt
development. including water. sewer lines. streets. lighting. and
parking lots.
Areas already slated for
redevelopment are the
primary. beneficiaries ofTIF
funds. A TIF district
essentially captures the tax
capacity of the properties
located within the specified
area. For the duration of the
district. property taxes that
result from increases in the
tax level above the level of a
designated year are placed in a
special fund that can be used
only to finance public project
costs. Bonds are often sold at
the outset of the
redevelopment project by a designated development agency so
that funds are available for up-front expenses, including land
assembly and infrastructure COSts. Simply stated, TIF utilizes the
revenue increase that will result from redevelopment to fund
extraordinary construction and development costs.
TIF has gained in popularity with public officials because it
generates money for redevelopment without expe,nding general
revenue. The principal purpose ofTIF is to e)jminate..~)jghi: by
supporting revitalization activities chat .t.J1e::pRwteiS'tEtOf'l!i~'.
upwil1ing (or perhaps unable) to undertake. The TIF.objective
is not to aid private enterprise. TIF also provides for the
recycling of infrastructure. enhances the tax. base, creates and
helps to retain jobs, aids in revitalizing brownfields, provides
affordable housing. and facilitates neighborhood stability.
In addition to providing economic benefits to individual
communities. TIF districts can have regional land-use implications
as well. Because TIFs are often located in urban areas, they help to
combat urban sprawl and the consumption of open land in a metro
region by providing incentives for urban infill development. "TIFs
are a great cool for revitalizing blighted urban land," sayS Peter
Skosey, urban development difeaor at the Metropolitan Planning
Council in Chicago. "They give municipalities tools which level the
playing field against greenfield development."
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The principal
purpose of TIF is to
eliminate blight
by supporting
revitalization activities
that the private
sector is unwilling or
unable to undertake.
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As an incentive for private investment, ftnds
from TIF districts in Rock Island. Iliinois, are
used to pay for interest costs incurred by the
tkveloper in a retkvelopment project.
IIF Roots
TIF dates back to the "urban renewal" movement that resulted
from the Federal Housing Act of 1949. The purpose of this act
was the elimination of the nation's blighted and substandard
areas. One outcome of the federal urban renewal program in the
1950s was the passage of relatively uniform urban renewal laws
in every state. The laws gave development powers to local
governments and permitted the establishment of urban renewal
authorities and programs. The states' most basic urban renewal
laws have since been vastly amended, however. Even the
language has been changed. For example, references to urban
renewal have been changed to "community development."
In the 1970s, the gradual withdrawal of federal funds from
urban renewal projects produced a need for new sources of
revenue to fund the programs. California and Minnesota were
the first states to make extensive use ofTIF. The success ofTIF
in these two states gained the attention of cities nationwide.
Today, nearly every state has some form ofTIF legislation.
TIF districts around the country have several important
criteria in common:
. A needs assessment to establish the necessity of a TIF district,
and the designation of a boundary for the district.
. Creation of a redevelopment agency by resolution or ordinance.
The agency may be a governing body of the municipality, or it
may be a new agency appointed by this body.
Eleventh Street Tax Increment
Financing District
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. Preparation of a development plan approved by the agency
and the city.
. Declaration of a base year from which to measure tax
revenue increases.
. Solicitation of developers to build within the district.
Needs Assessment. The municipality must first conduct a
needs assessment to establish that an area is blighted and that
redevelopment is both necessary and in the public interest.
Careful documentation of the assessment is critical because it is
subject to judicial scrutiny. Such scrutiny requires that the state
statute be followed explicitly and that the redevelopment agency
be prepared to defend its findings. As a protective measure, the
agency should carefully document data and methodology,
including expert testimony. The study should cite as many
permissible bases as possible from the statute to support the
findings of the needs assessment study. -Establishing: need with a
well-supported study is crucial to the TIF process as a means of
combating any legal challenges that arise and gaining public
approval for the redevelopment project.
Municipalities usually make the decision to establish a
redevelopment authority to exercise redevelopment powers. The
powers of such an agency typically include property acquisition
to eliminate blight, demolition, construction of infrastructure
and utilities. disposition of property at its fair value, programs
to repair and rehabilitate buildings, acquisition rehabilitation
and resale of structures for affordable housing use, and
acquisition of air rights.
.. ...ReJeve/opment Planning. A project plan is essential to the
TIF process because it provides a framework for implementing
the TIF district. Most stare statutes require some form of
redevelopment plan in order to ensure that TIF provides a
benefit to the community as a whole. Although the details vary
among states, legislation will usually outline the content of the
plan. Pennsylvania's Tax Increment Financing Act of 1990 is an
example of such legislation:
"The authority shall prepare a project plan for each tax
increment district and submit the plan to the governing body of
the municipality which will create the district and to the
governing body of any other municipality or school district that
levies property taxes within the boundaries of the proposed
districr. The plan shall include the following:
. A statement listing the kind, number, and allocation of all
proposed pubic works or improvements and/or all
residential, commercial, or industrial development and
revitalization improvements.
. An economic feasibility study of the project and the fiscal
effects on the municipal tax base.
. A detailed list of estimated project costs.
. A description of the methods of financing all estimated
project COSts and the time when related costs or monetary
obligation are to be incurred.
. A map showing existing uses and conditions of real property
in the district.
. Proposed changes of any zoning ordinance, master plan,
map. building code or ordinance.
. A list of estimated non~project costs.
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. A statement of proposed methods for the relocation of
families, persons, and businesses to be temporarily or
permanently displaced from housing or commercial facilities
in the project area by implementation of the plan. n
Planners can playa central role in these first two stages of the
TIF process by providing technical expertise, including
knowledge of state statues, local zoning laws. and land-use
issues. Additionally, planners can help ensure that TIF districts
remain committed to the goal of eliminating blight and
enhancing the long-range
plans of the area.
In many TIF districts,
zoning remains consistent
with the city's master plan.
In other districts. however,
zoning changes are needed
to lay the groundwork for
desired redevelopment and
to attract developers. A TIF
district in Chicago recently
underwent just such a
zoning change. Part of the
district was established on
the site of the RR Donnelly
Establishing multiple
TIF diItricts is not just a
tool for larger cities. This
downtown TIF district
in Rock Island, Illinois
(population 41,000) is
one of two such districts
in the city.
Downtow
building. The large facility was the former location of the
company's printing operations, but is now slated for mixed-use
development. The zoning change came as no surprise to
residents who have watched many area properties make the
transition from industrial to urban residential.
Establishing a Base Year. The base year refers to the tax
base of the year in which a TIF district is established. This
tax base serves a point of reference for determining future tax
increments. The general formula used to calculate tax
increment revenues is: I = r(n-I), where I = increment
revenues, r = the tax rate in the current year, n = the assessed
valuation in the current year, I = the assessed valuation in the
base year. This formula determines that any positive
difference between the base year and the subsequent years'
tax revenue will flow into the redevelopment fund. A base
year should be established early in the TIF process with as
Iowan assessment base as possible. Again, it is beneficial ro
pay close attention to the statue, which outlines deadlines
and provisions for triggering the base year.
Solicitation of Developers. Pending completion of the steps
to establish a TIF district. the redevelopment agency must work
to attract the private investment that will raise rhe tax
assessment base. Activities of the agency include planning,
making investments in public improvements, and acquiring and
clearing land for redevelopment. Such activities may require an
investment in advance of private development.
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The redevelopment agency may designate specific projects
for implementation and solicit investors and developers to
respond to a request for proposals. If the developer's proposal is
congruous with the redevelopment plan, the developer may
request assistance from the agency on important aspects of the
plan. The agency will then make an agreement with the
developer to build in accordance with the plan and within a
designated time line, at which point the agency should agree to
provide specified services in support of the development. In
Rock Island, Illinois, TIP funds can be used to pay for interest
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costs incurred by the
developer in a redevelopment ,
project. The funds may also
be used to pay for the costs of
job training.
Washington, D.C.,
developer Herbert S. Miller
feels that TIP districts make
mixed-used development
affordable for developers.
"Without it, you can't afford to
compete against an office
building." Miller is the
developer of Gateway Square, a
planned retaill entertainment
complex in Washington, D.C.,
where TIP is being employed to
revitalize the city's downtown area. The D.C. council's TlF bill
targets a downtown area of approximately 100 blocks. .
The Saint Louis Galleria retail complex in Richmond
Heights, Missouri, is a TIP success story. The project was
funded in part by TIF to help create ciey services such as no-fee
ambulance service, high-tech firefighting equipment, van
shuttles for the elderly, and routine sidewalk and road repairs,
all of which occurred without an increase in real estate taxes
over the past 1 0 years.
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lanners can play
a central role in
the TIF process by
providii1g technical
expertise, including
knowledge of state
statues, local zoning
laws, and land-use
.
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Issues.
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The Downslele of TIF
The TIP approach is not without opposition. Much controversy
has been generated over the varying definitions and broad
interpretations of "blight" in some TIF statutes. One unfortunate
consequence of the ambiguity is that municipal officials have
been allowed to unilaterally make critical financial decisions that
affect the tax base of school districts and other overlying districts.
Pennsylvania's statute defines blighted areas as, "unsafe.
unsanitary. inadequate, or overcrowded conditions of an area's
dwellings; lacking in proper lighting and open space; defective in
the design or arrangement of the buildings; fauley in street or lot
lay-out, and economically or soCially undesirable land uses."
While this definition provides several specific criteria for blight,
"undesirable land uses" may be considered tOO vague and
therefore provide a loophole for TIP misuse.
S~!2.~~e quick to note the misuse ofTlF, and claim that many
officialS do not recognize TIP as a redevelopment tool for blighted
areas. but rather an economic development tool to attract developers
and investors to the community. Another concern is that TIP moves
development from one city to the next, resulting in no net gain for
" the larger region. Misuse ofTIF can be largely attributed to poor
~ understanding on the part of municipalities, lack of dedication [0 the
[ elimination of urban blight. few resources for local planners, or even
~ the absence of a planning department altogether.
~ Insufficient planning of a TIP district can result in a legal
~' disaster for a municipality. In October 1994, a group of
~ nonprofit organizations and concerned citizens filed a lawsuit
~ against the town of Addison, Illinois. The lawsuit charged the
~, village with attempting to demolish Addison's only two
~ predominantly Hispanic neighborhoods by misusing powers
~ acquired through the enactment of a TIF district. The village
1 had no specific redevelopment plans for these areas other than
t:: the seizure and demolition of all or most of the 827 apartments
1 in the two neighborhoods, which were home to almost half of
~ the village's nearly 5,000 Hispanic residents. Despite a promise
- by municipal officials that no buildings would be razed without
public input, the Hispanic residents were faced with leaving
their homes because the village was forcing landlords to sell
within two weeks after the creation of the TIF district. Owners
were given the option of selling at a price set by the village.
Addison immediately demolished eight four-unit apartment
buildings. with four others anticipating a similar fate. The
village also filed a lawsuit to condemn at least eight more.
Demolition was halted the week that the lawsuit was filed.
The plaintiffs in the case-Hispanic and open housing
groups-were criticized by the village and its supporters who
claimed that their intent was to stop all redevelopment and
improvement efforts. The plaintiffs responded by saying, "all the
plaintiffs in this case are advocates of urban renewal. . . as long as
that renewal does not cause inexcusable homelessnesS, displacement
and economic harm. which was the case in Addison."
The $4.3 million settlement was reached in August 1997 and
is the largest settlement of any private fair housing suit in the
nation. The consent decree provides for the demolition of a
limited number of additional buildings to make way for
neighborhood parks and new affordable housing. Homeowners
will receive reimbursement at 110 percent of fair market value
and local tenants will receive substantial relocation assistance. In
addition to preserving the vast majoriey of the existing housing,
the settlement provides for the construction of up to 81 new
units of housing with ownership and occupancy prioriey given
to displaced owners and tenants. None of this was included in
the original TIF plan.
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Conclusion
TIF is a valuable redevelopment tool when used properly. TIF
districts can help to attract development to blighted areas,
encourage the cleanup of environmentally contaminated areas,
and provide incentive for infiJl development rather than the
development of greenspace. StiII, TIF districts have to be
accompanied by sound planning practices, including needs
assessment, land-use planning, and pl~s for the effective
management of the districts. If sufficiently planned, TIF will
provide economic benefits to a municipality and environmental
benefirs to a region as a whole.
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Sinking Shopping
Center to Become
a Wetlanel
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Occasionally, APA's Planning Advisory Service is asked to
provide examples of shopping center revitalization techniques.
Options usually include varying the tenant mix, renovating the
facade, improving the landscaping and parking, and/or
redesigning the signage. For the Phalen Shopping Center in St.
Paul, Minnesota, the selected alternative has been more
dramatic-demolish the majority of the site and convert it to a
lake and wetlands. By spring 1999, St. Paul hopes to transform
the site back into Ames Lake, surrounded by wetlands and
community open sp~ce.
Opened in 1960, the 200,OOO-square-foot shopping center
was expected to provide an economic boom to the Phalen
Village neighborhood. Builders speculated that a highway
proposed for the neighborhood would link it to the regional
retail market. But residents opposed the highway, which
ultimately stopped short of the neighborhood. Another highway
intended to traverse the area was built a mile and a half away,
crearing a more suitable site for a regional retail center
elsewhere. While the Phalen Shopping Center operated well for
a time, it never quite captured the community's retail market
and suffered from high vacancy rates.
And then there was the problem with the site. The center
was built on what was then the outskirts of St. Paul on the only
available vacant land-Ames Lake. To create a buildable site,
the developers drained and filled the lake. in some places to a
depth of 80 feet. The shopping center site was never truly stable
and began sinking right from the start. Cattails began to grow
through broken-up parts of the extended parking lot that was
paved for an expansion that never occurred.
The structural situation; coupled with the vacancies and a
lack of major maintenance work over the years, made it
.
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un;nl Nnus is a monrhly newsle"er published by ,he American Planning Associa,ion.
Subscrip,ions are available for 550 (U.S.) and 565 (foreign). Frank S. So. Eucu,ive Direc,or.
WiUiam R. Klein. Direc,or of Research.
un;nl NtrIII is pmduc:ed a, APA. Jim Schwab and Mike Davidson. Edi,on: Chris Burke. Fay
Dolnick. Kimberly Ces,er. Sanjay Jeer. Megan Lewis. Marya Morris. Ilecki ReaJaIF. Manin
Roupe. Joson Wi"enberg. Repo"en: Cyn,hia Cheski. Assi..an, Edi,or. Lisa Banon. Design and
Production.
Copyrighl II) 1998 by American Planning Associa,ion. 122 S. Michigan Ave,. Sui,e \(;00.
Chicago. IL 60603. ne Amelian Planning Associalion has headquarten ollices al 1 n6
M....chusc:m Ave.. N.W.. Washinlllon. DC 20036.
All righu reserved. No pan of rhis publica,ion may be rcpmduced or ulilized in any form or by
any means. electronic or mechanical. induding pholocopying. recording. or by any informalion
..Drage and relrieva1 sysrcm. wilhoul permission in wling from rhe American Planning
Association.
Primed on recycled paper. including 50-70% recycled 6bcr
and 10% posrconsumer waste.
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apparent that the community needed ro act. Finding a solution
for the shopping center became one of the catalyses for
developing a neighborhood plan.
In 1991, a neighborhood task force was established to
identify strategies to revitalize the neighborhood, including the
center, and develop them into a plan. The Phalen Village Small
Area Plan Task Force includes representatives of residents,
property owners, businesses, and twO members of the St. Paul
Planning Commission. When it acknowledged that the
shopping center needed some help, the task force originally
decided to add some aesthetic amenities to the site to create
some neighborhood open space. says Alan T orsrenson of the St.
Paul Department of Planning and Economic Development. It
was not initially conceived as a wetlands restoration site. The
idea for converting the site back to wetlands came from Sherri
Buss, who was studying landscape architecture at the University
of Minnesota when the city approached her adviser. offering
the shopping center as a student project. As she studied rhe
site, examining factors such as its history as a lake, the
concave topography, and hydric soils, "all the information
pointed to it being a wetland," says Buss. She developed a
wetlands restoration plan. which also became her thesis
project. When Buss presented her proposal to the
neighborhood task force in 1992, "I thought the
neighborhood group would laugh at us." she says; But many
of the residents remembered fishing in Ames Lake and
became excited. The task force included the idea in the
neighborhood plan.
Not all of the site will be returned to wetlands. Jerry's
NewMarket, a successful grocery store tenant. has purchased
50,000 square feet of the shopping center, which includes his
store and six other storefronts. Renovation of these stores is
expected to occur next year. In addicion, Prosperity Avenue, the
hopeful-sounding road that originally led to Phalen Center, will
be rerouted around the wetland, creating a new commercial
corridor to the north.
The $2 million restoration is being underwritten by
several contributors, including the city, the Metropolitan
Council (through its Livable Communities fund), the
Legislacive Commission on Minnesota Resources (using
lottery funds dedicated to environment). and the watershed
district.
Site excavation is scheduled for this summer. Initial wetlands
vegetation plantings will occur this fall, with the final plantings
completed next spring. The hope is that it will be a fully
functional wetland that serves primarily as an environmental
amenity and wildlife habitat. When completed. Ames Lake will
contain from seven to nine acres of lake and wetlands. It will
link to nearly five acres of wetlands restored in 1997 at Lake
Phalen, located approximately one-quarter mile from Ames
Lake, and become part of the Phalen Chain of Lakes bird
flyway. According to the small area plan, it will also serve as a
environmental education resource for school and youth
programs.
The Phalen Center project is part of an overall community
revitalization effort. says Torstenson. "The community has
always had stable areas, but has had pockets that were troubled,"
he says. The city hopes that the desire to live near green space
will help attract higher-quality housing and mixed commercial
uses, stabilizing the Phalen Village economy. Bws sees the lake
and wetland as "natural resources accing as an aid to economic
d,evelopment." Already there are new townhomes being
developed in the area. Megan Lewis. AlCP
QUESTIONS
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I Paul Martin
Knox Askins
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ASsignments
Paul Martin
Je1fLitchfie1d
chec:k tax ron
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DavidFetzer
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Paul Martin
Paul Martin
· Questions ou TIF Proposal ·
July 22, 1998
1) The boundaries of the TIF Zone need to be identified.
2) A scope of work defining the concept proposed and the identification section of the
Tax: Code, which will be followed in petitioning a TIF Zone.
3) Is there a phase I or is the entire submitted proposa1going to be built all at once?
If a phasing plan is proposed, please identify.
4) You indicated the school district and county already have agreed to a TIF Zone, in
concept, for this project. We will need a letter from the LPISD as well as from
Commissioner Jim Fonteno indicating their agreement to the creation of a TIF Zone
and at what tax levels they will participate. Sometime after the August 10 Workshop,
the City will need resolutions from the LPISD Board and Harris County
Commissioners Court stating their position.
5) Depending on funding choices (other than pre-funding) when do you expect some
refund on project expenses? After a planned phase of development or after build out?
6) What date contained within the TIF proposal is scheduled for termination of the zone?
7) If the LPISD does not participate with the TIF concept, will this project move ahead?
8) If the City agrees to create the TIF, does it have to participate with freezing ad valorem
taxes?
9) Ifwe do a TIF for this project, can we turn down a request from a similar developer?
10) A written letter signed by the property owners requesting the Reinvestment Zone who
own over 50010 of the property.
11) We would like to know the developer who will build the project along with their prior
history in subdivision development.
12) We will need to review the financing plan for the project and will need to visit with the
financial institution, which will provide the interim financing.
13) All delinquent property taxes on the area proposed by the TIF Zone will need to be
brought current. The City has an ordinance, which does not allow the City to do
business with firms, companies, or individuals who owe delinquent property taxes
within La Porte.
14) What are the dUTerences between a regular TIF and a TIF that is created by a petition?
15) The TIF statute calls for 1/3 of the taxes to be dedicated and used to support low
income housing within the boundaries of the TIF area and possibly within other parts
of the City.
True or False?
a) What is the definition of low-income housing?
I TIF Questions e e
I July 22, 1998
Page 2 of3
.1 Assignments
Paul Martin 16) . If true, what happens if the City does not have an area to' support low-income housing?
I Does the 1/3 taxes go back to retire the debt?
Jejf Litchfield, 17) What fiscal impact do TIF's have on a City's financial statements, such as bonds,
.1 David Fetzer, credit standing, and legal requirements?
Paul Martin
18) Will the project be done in phases or all at once?
I. a) Clarify statements within the proposal- outline for La Porte Development:
U Additionally, the utilization of land, additionallan~ dedicated to the City must
I be purchased or condemned and purchased from the Weems' Family."
b) Ifland is dedicated to the City, why do you want a reimbursement?
c) What property are you requesting the City needs to purchase?
I d) Identify the use and location of the property.
e) Indicate the amount of property acreage you want the City to purchase and why.
t) What dollar value are you placing on the property you want to sell to the City?
I g) "Also, other recreational amenities, yet to be negotiated . . .."
Explain what amenities you are suggesting and the relationship they may have
with a City need.
I Why does the City have to pay and at what rate?
19) Which of the following methods of funding under Chapter 311 of the Tax Code do you
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a) Pre-fund the projects through the use of bonds.
I b) Funded directly as the projects are completed out of the revenue stream of
tax receipts.
c) Refund the project expenses through the sale of bonds (this is usually done
. after sufficient incremental tax revenue is generated annually to service the
, bonds).
d) Refund the project expenses though the use ofa tax: revenue note(s), which pays,
- back the developer, lender, municipality or school district out of the revenue
stream of tax receipts.
Paul Martin 20) Can a TIF Zone be undone once it is created? If yes, how?
21) The additional (9) holes of golf - who will build and pay for them?
Paul Martin, 22) All the examples and articles within the proposal show success stories when using
David Fetzer, TIF's for redevelopment of blighted areas or areas of major economic distress. Are
Staff you aware ofTIF Zones that have been used for new development? If yes, where?
I TIF QuestiODS
I, July 22, 1998
Page 3 of3
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23) . See letter from Guy Rankin dated November 4, 1997.
a) Does the proposal meet the minimum park land dedication requirements? We
call for l00A. of development what does the proposal set aside?
b) Are golf course holes long enough to meet the needs of a competitive course?
c) Are drainage and detention requirements of the proposed development in place?
d) Do the' proposed commercial establishments meet the City's zoning requirements
under a Planned Unit Development (PUD)?
24) At what price are homes going to be selling for in the proposed subdivisions, and what
are the rental rates for the proposed apartment complex going to be set at?
25) What is the projected cost of improvements for the project by category?
Example: 1) streets, 2) sewer lines, 3) water lines, etc.
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DEVELOPER RESPONSE
Aug-06-9a 12:41P Hawes H;11 & Patterson
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7135419906
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Hawes 8111 , Patte%son Consultants, L.L.P.
Land Devel.opment and City Pl.anning Services and Development Financing- for 'the
Private and Public Sectors
August 5, 199H
C!TY MAl'iAGER
o 0
Bo b llerrera
City Manager
City uf LaPorte
P.O. Bnx 1115 '
LaPorte, Tt:X3S 71571-1115
RE: Responses to questiuns on 1'11: proposal - City ofLaPonc
Dear Mr. Herrera:
Our fir~ 1 I awes Hill &. Patterson Consultants, has been asked to r~spond to questions that were
asked by you to Mr. Fred Westergren, in a memorandum dated July 22, 1998. These h;sues will
al!;<) he li..trther addresst:d to thc City "cuuncil and staff in the City Council workshop scheduled lor
August 10.
1. The boundarit:s will be shown on a map to be prt:scntcd at tbe workshop.
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2. Chapter 311.00S(a)(5) of the Texas Tax Code will he followed. The owners oCthe !:'ubject
pr(lpt:rty will submit si~ncd petitions requcsting that the City torm a TTF over the subject
property.
3. The prnperty will be:: developed in pha.'1Cs.
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4. There are a number ofTlf projecls currently in place in Harri~ County, a portion nrwhich are
virtually identical to the proposed project in LaPorte, in terms ofraw land being developed,
single llunily homes bt:ing built, etc. Each of these prnj~cts has both the support and the
participation of Harris County Commissioners Court, and we can imugint: no reason for thal
to change lbr this project. As to the schoul district's suppurt~ Superintendent Dr. John
Sawyer has indicated that'he will (irst wait to see iflhe city establisht:s thc Ill" 7.one, and ifso.
he will seck legal cnunsel as to how the district should proceed with negotiations to
participate. He has indicated that his initial review of the prnject appears to show that it
would have no negative impact on the district. Wld if that holds true, he would anticipi.\te
school district participation. if'the Board apprnvt:s.
In accordance with Chapt~r 311.0 13(g) & (h), each taxing jurisdictiuns' level of participation
in the TTF will be sought and negotiated aller the Tll-' is created. llle level nfparticipaticl11
will he inc::ludcd in the lilliUlciaI. schedules that will be included in the Final Project Plan and
Mailbox:
11743 weat Sellfort No. 309
Stafford, ~exas 77477
Locat.ion:
7324 Southwest Freeway
Az'ena Two Towe~ #975
Houston, Texas 77074
(713) 541-0447
(713) 541-9906 (Fax)
I Aug-06-98 12:41P Halts Hill & Patterson
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Hawes Hill , Patterson Consultants, L.L.P.
Land Development and City ~lanning Services and Development Financing Eo: the
p:ivate and Public Secto:s
Reinvestment Zone Financing Plan. The Final Project Plan and Reinvestmenl Zone l:inancing
Plan must be approved by the TLF Board and City Council.
5. Reimbursements are only allowed for eligible publieimprovements as specified in Chapter
311.002 of the Texas Tax Code. Reimbursements tor public improvements would be
available only after taxable improvements are constructed and tax increment revenue is
cul1ecled and deposited-into a tax increment thnd.
6. In accordance with Chapter 311.007 urthe Texas Tax Code, the TI'" would temlinale un the
earlier ot:
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The termination datc designated in the ordinance creating the :Lone or an earlier
termination dale de~ignatcd by an ordinance adopted subsequent tu the ordinance
creating the ~ne;
The date on which aU project costs, tax increment bonds. and i.nterest on those
b(}nd~ have been paid in full:
The tax im:rement pledged to the payment of bond-; and interest on thc bonds may
be discharged and the reinvestment zone may be tenninated if the municipality that
created the zone deposits or causes to be deposited with a trustee or other escrow
agent authorUed by law funds in all amount tha.t~ together with the interest un the
investment ofthe funds in direct obligations of the United States, will be !:luflicienl
to pay the principal (lr~ premium, irany, and interest on all bonds, issued on behalf
of the reinvestment 7.one at maturity ur althe date IL'<.cd lor redemption of the
bonds. and to pay any other amounts that may become due, inlcuding
compcnsation due or due to become due to the tru.'aee or escrow agent.
h.
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7. Comprehensive financial ~chedulcs will bc drafted which indicate participation by onc. two.
and all three of the tax authorities (City, County. LPlSD) to determine the financial fea.'lihiliLy
of"the TIF at various levels ofparticipalion.
8. Several developers would complete the projects. Devclopers of each phase would ~ chosen
based on their ability and experience to cnmplete lhe projects within the overall master plan.
The subdivision developer will he:: delemlined at a later dalc. Builders of single family homes
would be sought based 011 their reputati(m~ experience and other quality-related factors.
Mailbox:
11743 Weet Be~~fort No. 309
Staffo:d, Texas 77477
Location:
7324 Southwest Freeway
Arena TwO Tower 1975
Houston, Texas 77074
(113) 541-0447
(713) 541-9906 (Fax)
IiU9-OS-9a 12:41P Haw1itH;ll & Patterson
713541990S
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Hawes Hill & Patterson Consultants, L.L.P.
Land DevelopmeD~ and City ~lanninq Services and Development Financinq for the
p~ivate and Public Sectors
9. A~ nuted in #3 above, the pruject will be developed in pha~es
. Dedicalion of land. ifllecessary and appropriate, will be determined based on the tinalland
plan and will be negotiated with the City al a later date.
. Reimbursements will be sought for those public improvements identified under Chapler
311 uf the Texas Tax Code. Since the ftnalland plan has yet tn be completed,
reimbursements have not been identitled.
. Since the lina11and plan and Preliminary Financing Plan have yet to be completed, we arc
not requesting that the City purchase any property at this time.
. See above
. See above
. See above
. See above
10. Developer reimbursement would oceur ill the following manner:
. As projeCts are C(,lmpleled and TIF revenues arc available
. Through the sale of bonds after ~uf1icienl TIF revenues arc available to pay the debt
service on the bonds
11. The property that is planned for nin~ holes of golf. would be designed and built by a golf
course d~velnpcr, or dedicated as parkland as required by the Zoning Ordinallce. Golfcourse
funding willtikely be provided ~; the golf course developer.
12. The expected sales priec for the single family homes would range from $95,000 to $250,000.
The Class-A apartmenls would be rcntcd at market rate.
J 3. The projeetcd cost of public improvements is being identified and will b~ included in the
Preliminary Financing Plan, which will ht: reviewed by the City staff and Cily Council and will
be the basis for the lulure public hearing.
We appreciate lhe opportunity to meet wilh you, City Council and City stall' althe August 10
workshop, to discus!> this exciting development project liJT LaPorte.
Sincere\v.
.'
(.. .,::""1, \
". .l.:. _ r? l! ..l..:.. (( ';.-;.
David Hawes ,:..J
~~
Parke Pancrson, Aiel'
Ke.iltlox :
11743 W.a~ Bellfo:t No. 309
S~afford, ~exas 77477
.,
Location:
7324 Southwest Freeway
Arena 'l'wo Towe: 1975
Houston, Texas 77074
(713) 541-0447
(713) 541-9906 (Fax)
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CITY ATTORNEY RESPONSE,
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CITY '1GER
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ASKINS & 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
CHARLES R. HUBER. JR.
BOARD CERT''''EO . CIVIL TRIAL LAW
TEXAS BOARD OF' LEGAL SPECIALIZATION
TELEPHONE 281 471-1886
TELECOPIER 281 471-2047
August 4, 1998
Mr. Robert T. Herrera
City Manager
City of La Porte
City Hall
La Porte, Texas
Re: TIF Proposal
Dear Mr. Herrera:
The City of La Porte has been approached by the owners of real
property in the south portion of La Porte, adjacent to the City of,
La Porte Golf Course, to form a TIF Zone under the provisions of
Section 311; Texas Property Tax Code. You have asked my opinion on
the question of whether, if the City of La Porte creates a TIF Zone
for this particular project, which will consist of the construction
of new residential buildings, would the City be in a legal position
to turn down a request from a similar developer?
My answer to the question posed is "no", and I would like to give
you my reasons.
Historically, the City of La Porte, in its operations, has
endeavored to treat all similarly situated persons and groups, in
a like manner. Examples are tax rates, where similar treatment is
required by state law; industrial district agreements, where all
similarly situated property is given the same industrial tax rate;
water, sewer, garbage collection, and other City services which are
provided for a fee; and the enforcement of zoning and building
codes and other laws and ordinances of the City of La Porte, which
are applied in like manner to similarly situated persons and
groups.
The City of La Porte has had for many years, comprehensive
ordinances relating to the subdivision and development of real
property for residential subdivisions. These ordinances are very
strict, and essentially require the developer to pay one hundred
percent (100%) of the development cost, including drainage, water,
sewer, curbs and gutters, street signs and street lights. There
are probably four or five active subdivision developments currently
in the City of La Porte, all of which seem to be prospering
economically, without taxpayer subsidy, and all of whom are
competitive with one another. In my opinion, the City of La Porte
should do nothing to place anyone or more residential subdividers,
in a more favorable economic position with tax subsidies, over one
or more other subdividers.
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MKINS & ARMSTRONG. P. C.
.. ATTORNEYS AT LAW
Robert T. Herrera
August 4, 1998'
Page 2
This is not to say that a TIF Zone could not be created under
appropriate circumstances, in the City of La Porte. Typical uses
of TIF Zones are for the remediation and redevelopment of blighted
or economically depressed areas. The purpose of the TIF Zone in
that type of situation would be remedial, and would not tend to
create a preference over other individuals or groups.
In conclusion, it is my opinion that if the City Council of the
City of La Porte determines as a policy matter to give taxpayer
subsidies through the creation of TIF Zones for new residential
development, such Zones should be offered to all similarly situated
developers of new residential subdivisions. However, the City's
economic advisers should be consulted on the economic impact of
such an action by the City, which impact I would assume would be
quite unfavorable to the City of La Porte.
Please let me know if I can be of any further assistance.
'/
z;;;;:;;?:/~
Knox W. Askins
City Attorney
City of La Porte
KWA: sw
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BOND COUNSEL RESPONSE
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AKIN, GUMP, STRAUSS, HAUER & FELD, L.L.P.
ATTORNEYS AT LAW
AUSTIN
BRUSSEL.S
DAL.L.AS
HOUSTON
L.ONDON
L.OS ANGEL.ES
MOSCOW
NEW YORK
PHIL.ADEL.PHIA
WASHINGTON. D.C.
A REGISTERED LIMITED L.IABIL.ITY PARTNERSHIP
INCL.UDING PROFESSIONAL. CORPORATIONS
300 CONVENT STREET
SUITE 1500
SAN ANTONIO, TEXAS 78205
(210) 281-7000
FAX (210) 224-2035
CITY MANAGER
~- h9/()(,/9y
~-III A Ij?/
I 01 rJ& 'i
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Direct Dial: (210) 281-7084
August 5, 1998
Mr. Robert Herrera
City Manager
City of La Porte
604 West Fainnont
La Porte, TX 77571
Re: Bay Forest Reinvestment Zone
Dear Mr. Herrera:
This letter is in response to the questions you posed to me at our meeting of July 22, 1998
concerning the possible creation of the Bay Forest ReinvestmentZone (the "Zone") and the proposed tax
increment financing of improvements within the Zone. Specifically, the numbers listed below are the
numbers on the list of questions you distributed to the working group on that date.
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8. If the City .grees to create the TIF, does it have to participate with 100% of the value
for ad valorem taxes?
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The Zone anticipated to be created must be created pursuant to a petition filed under Section
311.005(a)(5) of the Tax Code (citations herein are to the Tax Code); therefore. Section 311.013(g) would
apply which pennits the City, as a "taxing unit", to enter into an agreement whereby it could (1) include
conditions for the payment of the tax increment, (2) specify the portion of the tax increment to be paid,
and (3) specify the years for which the tax increment is to be paid. Accordingly, we believe that the City
would not have to participate 100%.
9. If we do a TIF for this project, can we turn down a request from a similar developer?
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Generally speaking, no two proposals will be the same. Accordingly, we believe the City Council
has the power to reject a petition to create another zone, within its discretion, if it has a reasonable basis
therefor.
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14. What are the differences between a regular TIF and a TIF that is created by a petition?
A zone may be created either (1) by City Council on its own motion or (2) the City Council
granting to a petition submitted by 50% of the appraised value of the property in the area according to
the most recent certified appraisal for Harris County.
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AKIN, GUMP. STRAUSS. HAUER & FELD. L.L.P.
Mr. Robert Herrera
August S, 1998
Page 2
A "regular TIF" could be created by the City if the area meets at least one of the following
criteria:
1. The area's present condition substantially impairs the City's growth, retards the provision of,
or constitutes ~ economic or social liability to the public health, safety, or moral welfare;
2. The area is predominantly open and because of obsolete platting, deteriorating structures, or
other factors, it substantially impairs the growth of the City; or
3. The area is in or adjacent to a "federally assisted new community."
In addition, the following other general restrictions would apply:
1. No more than 10% of the property in the zone may be used for residential purposes.
2. The zone may not contain property that cumulatively would exceed 15% of the total appraised
value within the City and its industrial districts.
3. The zone cannot contain more than 15% of the total appraised value of real property taxable
by a county or school district.
The above restrictions do not apply to the Zone since it must be created pursuant to a petition. Some of
the requirements for the Zone are as follows:
1. The City Council must specify in the ordinance that the Zone is designated under Section
311.005(a)(5).
2. The board of directors of the Zone must consist of nine members. Each school district or
county that levies taxes on real property in the Zone may appoint one member of the board if the school
district or county has agreed to participate in the Zone. The member of the state senate in the district in
which the Zone is located is a member of the board, and the member of the state house of representatives
in the district in which the Zone is located is a member of the board (either the senator or the
representative may designate another individual to serve at his pleasure). The remaining members of the
board are appointed by the City Council and such individuals must be at least 18 years of age and own
property in the Zone or be an employee or agent of a person who owns property in the Zone.
3. The board of the Zone may exercise power granted in Section 211, Texas Local Government
Code, to restrict the use or uses of property in the Zone.
4. Section 311.0101(a) requires that disadvantaged businesses in the Zone must be given full and
complete access to the procurement whereby supplies, materials, services, and equipment are acquired by
the board to the extent constitutional. The pennissible preference would be given to such disadvantaged
businesses.
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AKIN, GUMP. STRAUSS. HAUER & FELD, L.L.P.
Mr. Robert Herrera
August 5, 1998
Page 3
S. Since the Zone is located in Harris County (a county a population of2.1 million population or
more) the project planned for the Zone must provide (A) that at least 1/3 of the surface area of the Zone,
excluding roads, streets, highways, utility rights-of-way, and other public areas or areas exempt from ad
valorem taxation, be dedicated to residential housing and (B) that at least 1/3 of the tax increment of the
Zone be dedicated to providing low income housing during the term of the Zone.
6. As mentioned above, Section 31 1.0 I 3 (g) permits the taxing units in the Zone to agree to
conditions for payment of the tax increment into the fund, specify the portion of the tax increment paid
into the fund, and specify the year for which the tax increment is to be paid; or such taxing units may opt
completely out of the Zone.
IS. The TIF statute calls for 1/3 of the taxes to be dedicated and used to support low income
housing within the boundaries of the TIF and possibly within other parts of the City. True or false?
True.
16. If true, what happens if the City does not have an area to support low income housing?
Does the 1/3 taxes go back to retire the debt?
The only guidance we have to this answer is the wording of Section 31 1.01 I(f) which provides
"at least 1/3 of the tax increment of the zone be dedicated to providing low income housing during the
term of the Zone." The statute is mandatory in nature. Although, "low income housing" is not defined
in this statute, we assume that it has the same meaning as the Department of Housing and Urban
Development promulgates for other programs. We do not think that the board of the Zone would have
the discretion to use this portion of the revenues for any purpose other than low income housing, including
no discretion to use the money to retire debt.
17. What fiscal impact do TIFs have on a city's financial statements, such as bonds, credit
standing, and legal requirements?
Section 311.016 requires the City to submit an annual report to the chief executive office of each
taxing unit that levies taxes on property within in the Zone to include the following items:
· the amount and source of revenue in the tax increment fund established for the Zone;
· the amount and purpose of expenditures from the fund;
· the amount of principal and interest due on outstanding bond indebtedness;
· the tax increment base and current captured appraised value retained by the Zone;
· the total amount of tax increments received; and
· any additional information necessary to demonstrate compliance with the tax increment
financing plan adopted by the city.
A copy of this report must also be sent to the Public Finance Division of the Attorney General's Office.
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AKIN, GUMP. STRAUSS. HAUER & FELD, L.L.P.
Mr. Robert Herrera
August 5, 1998
Page 4
If the Zone is over a material portion of the City, we believe that the official statement or other
disclosure document issued in connection with a borrowing would necessarily include disclosure of the
Zone. If several zones were created, it appears that rating agencies might be concerned that the City has
limited its power to tax while it continues to be responsible for providing municipal services.
20. Can a TIF Zone be undone once it is created? If yes, how?
Section 311.017 provides that the Zone is tenninated on the earlier of (1) the tennination date
designated in the ordinance creating the Zone or an earlier tennination 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 or defeased.
22. All the examples and articles within the proposal show success stories when using TIFs
for redevelopment of blighted areas or areas of major economic distress. Are you aware of the TIF
Zones that have been used for new development? If yes, where?
According to the Office of the Attorney General, the following cities have had recent tax
increment financing activity: Beaumont, Burleson, ColIege Station, DalIas, Houston, Killeen, LaMarque,
Schertz, Temple, and Wichita Falls. We are familiar with the College Station Zone and it was created
over commercial property. We have reviewed at one least Dallas Zone documentation, and it was created
over commercial and residential property. However, Mr. J.C. Howell of Coastal Securities, the financial
advisor for the proponents of the Zone, has infonned us that he is working on a residential development
TIF in the City of Houston. We do not know of any other residential development TIFs.
School districts - In our discussion, the question was asked how school districts were affected
by recent changes in law. The following discussion is from a document provided to us by the Office of
the Attorney General concerning tax increment financing.
"It is important to note that the 1997 Legislature changed school funding laws regarding
the ability of school district to achieve a reduction in taxable property value due to the
existence of tax increment financing.. Local school districts until September 1, 1999
may still reduce the value of their taxable property that they report to the state to reflect
any value that is effectively "lost" due to tax increment financing participation by the
district. 2 the ability of the school district to deduct the value of the tax increment that
it contributes prevents the school district from being negatively affected in tenns of state
school funding. However, the new law changes the treatment of TIF reinvestment zones
that are created after September I, 1999. The Comptroller will no longer reduce taxable
Texas Senate Bi1l1873, 75th Legislature, Regular Session (1997).
2
In tax increment fmancing, value is not actually "lost". Rather, some of the land's increase in value is
classified as "captured appraised value" so that an amount of taxes can be forwarded to the tax increment
financing board. Such taxes are, in effect, lost to the school districts because they must be contributed to
the tax increment fund and cannot be used for school programs.
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AKIN, GUMP. STRAUSS. HAUER & FELD. L.L.P.
Mr. Robert Herrera
August 5, 1998
Page 5
property value for school districts to reflect tax increment financing losses for zones that
are created on or after September 1, 1999. As a result, participation in tax increment
financing by a school district in those zones will likely result in lower state aid to the
school district assuming all other factors are constant.
"There is some debate about what the effect of the new law will be in cases where a
school district is involved in a tax increment financing agreement that was created before
September 1, 1999, but that is still in effect after that date. Any school district that might
be in this situation will want to visit with both the Texas Education Agency and the Texas
Comptroller's Office about the possible effects of this new law on the amount of state aid
to be received by the district. Before a local government implements tax increment
financing, it should visit with its local financial advisor to detennine the potential effect
on the entity's state aid, and the effect on the entity;s financial and bond rating."
*
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*
I trust that this letter is sufficient in answer to your questions, however, if any additional questions
are raised, please let me know and, I will be happy to address them.
M. Paul Martin
MPMldma
FISCAL ADVISOR RESPONSE
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MORONEY, BEISSNER & CO., INe.
Municipal Financial Advisors
Two Post Oak Central Bldg.
1980 Post Oak Blvd., Suite 2100
Houston, Texas 77056
713/960-8900
. 713/960-8904 Facsimilie
July 29, 1998
Mr. Robert T. Herrera
City Manager
City of La Porte
P.O. Box 115
La Porte, TX 77572-1115
Re: Proposal/or creation 0/ a Tax Increment Financing District (TIF) within the City
Dear Bob:
With regard to our discussion of this past week with the Mayor, you, your administrative
staff, and the City Attorney regarding the above captioned proposal, there are two points we
would like to make for your consideration in weighing the factors to be considered in whether or
not the City should approve this type of assistance for residential development.
First, after having discussions with analysts at both Moody's and Standard & Poor's it is
clear to us that whatever debt is created by the TIF would have some impact on the City's credit
standing in that it would properly be included in the City's overlapping debt statement.
Second, it is my understanding that currently there are five residential developments
occurring within the City. In all probability the City would be faced with considering the same
type of assistance to them in some fonn or another. As you know doubt know, the assessed
valuation of the area covered by the TIF (excluding agricultural or other type of exemptions)
would be frozen until the debt created by the TIF is retired thus, relieving the property owners
within the TIP of city taxes on the value added by the development for 20 to 30 years (the life of
the TIF Bonds).
If there is anything further we can do to assist you in your deliberations regarding the TIF,
please let us know.
Yours Very Truly,
i /J~~~
Ii. Da..Af#'~-./
President
RDF:smt
Established in 1919
STAFF RESPONSE
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TIF QUESTIONS
Ouestion 23A
Does the proposal meet the minimum park land dedication requirements? We call for lQY{; af
de.;elepffteftt one acre / 160 dwelling units, what does the proposal set aside?
NOTE: Guy Rankin's letter dated 11/4/97 refers to the Park Land Dedication
as 10% of development.
The current development ordinance calls for the dedication of one-acre
parkland for each 160 dwelling units (or in certain circumstances, payments in
lieu at $175.00 per dwelling unit). The ordinance requirement of 1 ac. /160
dwelling units will yield a lower result, approximately 7 ac. vs. 26.3 ac.
which would be 10% of the developments total acreage or 17.9 acres which
would be 10% of the 179.69 acres proposed for residential development.
However, this land is in a Planned Unit Development district and if it is
developed as a P U D, there is more flexibility in negotiating parkland
dedications. There are also provisions that deal with the acceptability /
usability of land dedicated as park land.
To answer the question we are relying on the information provided in the package submitted by Fred
Westergren. The specific information used is a table titled "UNIT BREAKDOWN PER
IRVING PHILLIPS".
The following table summarizes the Park Land proposed by the developers. It is calculated
two ways, (1) including golf areas, (2) excluding golf areas. This was done because of the statement
that, "additional1and dedicated to the City must be purchased or condemned and purchased from the
Weems family. n
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WEEMS PROPERTY AS PROPOSED COMMENTS
Rec CenterlPark 204 0 aSF9S Not counted/private facility
Park .70 acres Assumes public parkland
Park 1.62 acres Assumes public park land
Golf Course 7.54 acres Assumes golf area is counted
Golf Course 5.64 acres Assumes golf area Is counted
Golf Course 5.22 acres Assumes golf area Is counted
Golf Course 4.54 acres Assumes golf area is counted
Total including golf areas 25.26 acres If golf areas are counted as
open space dedication
Less golf areas
(22.90 acres)
Total excluding golf
areas
2.36 acres
vs. 3.77 acres required by
Development Ordinance
(603 Units)
COOKE PROPERTY
AS PROPOSED
COMMENTS
parksllakes/greens
22.75 acres.
Ys. 3.24 acres required by
Development Ordinance
(518 units)
· Since these acreages are not broken out it Is difficult to evaluate the park land dedication.
Some questions/comments are:
1. Does this include the 80-foot (est.) strip owned by Shady River?
2. Does this include the wetlands area?
3. Does this includes the lakes (which selVe the homeowners but not the general
public)?
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Ouestion 23C
Are drainage and detention requirements of the proposed development in place?
The drainage and detention requirements to my knowledge have not been determined. The
developer's landscape architect is aware of the need for detention, but the report does not specifically
mention or describe the area being set aside. The "General Sketch Plan" shows a series of
lakesIponds in the development. It is assumed that these are programmed for detention.
A quick estimate of the' storage volume needed is 145-acre feet. If the basins are normally
dry, and if they average 8 feet in depth, then the surface area would be approximately 18-20 acres.
This is based on Harris County Flood Control District's method of determining storage volume for
projects less than 50 acres then multiplied by 5.25. However, for a project of this size a separate
analysis is required. If the basins are to serve as amenity lakes, then this rough estimate would not
apply.
Ouestion 23D
Do the proposed commercial establishments meet the City's zoning requirements under a Planned
Unit Development (POD)?
The Weems property is zoned PUD. The Cook property is a mixture of Neighborhood
Commercial (NC), POD (for apartments), and R-l. If the development proceeds as a PUD, there is
some flexibility to the proposed land use. In essence, the approval of a PUD is an approval of the
proposed land uses. Generally, the Planning and Zoning Commission would use the City's Land
Use Map as a guide for approving the proposed development.
In very general terms, the City's adopted land map proposes the following:
. Along SH146 from BayPoint Townhomes to Weems Blvd. - mid to high density
residential. The development proposes commercial, single family and multi-
family.
. The intersections of SH 146 and Weems Blvd. and SH146 and the southside of
McCabe Rd. - commercial uses. The development proposes commercial at the
intersections, plus multi-family at McCabe Rd.
. The balance of the Cooke property as - single family. The development proposes
single family and a commercial strip along SH146.
. The north side of McCabe Rd. at SH146 - mid to high density residential. The
development proposes single family, multi-family and commercial.
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As a side note, the Planning and Zoning Commission has previously dealt with three .of the
land uses proposed for the Cooke property.
1. The extreme Northwest comer, at the request of Mr. Cooke, is zoned N.C. Unless there
is a zone change, the allowable uses are those listed in the Zoning Ordinance N. C.
(Neighborhood Commercial) table.
2. The proposal infers that the apartments proposed at SH146 and McCabe Road is 16 acres
in size. The developers of the apartment project did request from the Planning and
Zoning Commission, approval of a 16-acre apartment project to be built in two phases,
Phase I, 10 acres and Phase H, 6 acres. The Planning and Zoning Commission only
approved the lo-acre apartment project. The current zoning is PUD.
3. The commercial" strip proposed on the Cooke property south of the apartment project and
parallel to SH146 was the subject of a general plan submission. Mr. Cooke requested
Planning and Zoning Commission consider commercial uses for this area, but P & Z did
not approve the request. The current zoning is R-1.