HomeMy WebLinkAbout2004-09-13 Regular Meeting and Workshop Meeting
e
.
MEMORANDUM
FROM:
Cynthia Alexander, Assistant City Manager
TO:
Mayor and City Council
RE:
City Council Agenda for September 27, 2004
DATE:
September 24, 2004
Please find attached an addendum to the City Council Agenda for Monday, September
27,2004, .This addendum will replace Item #7 on your Agenda, which had to be pulled
per changes made by Bond Counsel. Working with the City Secretary's Office, we
determined all of the items could be accomplished on one Agenda-Request Form,
According to our Bond Counsel, our governing body must (1) authorize the sale of the
bonds, (2) authorize the Public Notice, and (3) approve the Preliminary Official
Statement.
We received a call today from the Financial Advisors that the Preliminary Official
Statement (POS) would be sent to us via overnight delivery. The POS is a legal
document that is too thick to copy and distribute, so it will be available in the reading
room in draft format.
"
. '.
e
e
ADDENDUM TO MEETING NOTICE
The following items will be added or removed to the September 27, 2004 City Council Meeting to be held in the
Council Chambers at City Hall, 604 West Fairmont Parkway, La Porte, Texas. The below item will be discussed on
September 27,2004 at 6:00 p.m.
Item 7 is deleted. The following items will be added and discussed at the time item seven would have been
discussed.
7a. Consider approval or other action regarding a Resolution Authorizing the Sale of Approximately
$7,000,000 Certificates of Obligation (Res. 2004-19) - C. Alexander
7b. Consider approval or other action regarding a Resolution Authorizing the Publication of Notice of Intention
to Issue Certificates of Obligation (Res. 2004-20) - C. Alexander
Item 5c was removed from the consent agenda and can be discussed after items 7a., 7b. and 7c have been
discussed. 7 c is being added to afford the citizen to speak prior to the item being voted on.
7c. Receive report on a request by David Tharpe with regard to the condemned structure at 618 S. Iowa.
7d. Consider authorizing the City Manager to execute a demolition contract - W. Sabo
I hereby certify that I posted this Notice on the bulletin board located at a place convenient to the public in the
City Hall of the City of La Porte, 5:00 p.m. on the 24th day of September 2004, and that (1) said Notice was
posted for at least 72 hours preceding the scheduled time of the meeting; or (2) if this Notice was Dosted less
than 72 hours but more than 2 hours before the meetina convened. I herebv certify that said meetina was
called because of an emeraency or uraent Dublic necessity limited to imminent threats to DubHc health and
safelY or reasonable unforeseeable situations reauirina immediate action bY the City Council.
Witness my hand and the Seal of the City of La Porte, Texas, this the 24th day of September 2004.
CITY OF LA PORTE
Y--ktW1l.~uf
Martha Gillett, TRMC
City Secretary
Posted:
e
e
e
e
A
MINUTES OF REG. MEETING, PUBLIC HEARING A.ORKSHOP MEETING
OF THE LA PORTE CITY COUNCIL
September 13, 2004
1. CALL TO ORDER
The meeting was called to order by Mayor Alton Porter at 6:30 p.m,
Members ofCitv Council Present: Councilmembers Chuck Engelken, Tommy Moser, Mike Mosteit, Louis
Rigby, Barry Beasley, Peter Griffiths, Mike Clausen and Mayor Alton Porter
Members of Council Absent: Howard Ebow
Members of City Executive Staff and City Emolovees Present: Assistant City Manager John Joerns, Assistant
City Manager Cynthia Alexander, Assistant City Attorney Clark Askins, City Secretary Martha Gillett,
Assistant Finance Director Michael Dolby, Interim Planning Director Wayne Sabo, Police Chief Richard Reff,
Human Resources Manager Sherri Sampson, Emergency Management Coordinator Jeff Suggs, Fire Chief
Mike Boaze, Assistant Fire Chief John Dunham, Lt. Carl Crisp, Assistant City Secretary Sharon Harris and
EMS Chief Ray Nolen
Others Present: Katie Howse, Robby Angell, Matthew Villarreal, Zachery Garza, Cynthia Rawlings, Gene
Nees, Phyllis Nees, Mary Ann Hayes, Don Tharpe, Jay Dunham, Walter Barnes, Jeremy Shaffer, Keith
Kaufman, Sandy Nolan, Erah McNair, Norvel Cone, Ronnie Springer, TJ Mills, Shawn Trader, Dave
Turnquist, 0, W. Schaffer, Volene Schaffer, Evelyn Kennedy, JoAnn Kointz, Sue Gale Mock Kooken, Paul
Hickenbottom, Mildred Rosamond, Xyla Richardson, Mattie Britton, Loebry Griffin, Mary McPhee, Betty
Gillespie, Jessie Foster, Ray C, James, Theresa Puckett, Aaron Fininis, Tom Pedersen, Mrs. Evan Kerr, Viki
Campise, Joseph Funda, Mr, & Mrs. Daniel Garrett, Lynn 'Wilbarger, Monica Garner, Sydelle Najer, Justin
Travis, Shannon Miston, "Houston Chronicle's" Carol Christian, Barbara Lunday, Dottie Kaminski, Evan
Kerr, Imogene Pulleine, Tonya Tacy, Colleen Hicks and Jacob Moore
2. Reverend Dan Chappell ofFairmont Park Baptist Church delivered the invocation.
Reverend Chappell was not present to provide the Invocation, The Invocation was provided by Assistant City
Attorney Clark Askins,
3. Mayor Porter led the Pledge of Allegiance.
Councilmember Beasley motioned to take Item Number 11 out of order, putting it after Item Number 3.
Councilmember Moser seconded the motion.
11. Council to consider approval or other action regarding a resolution encouraging the "Wear Orange Day"
program every Friday to show support for La Porte Bulldog Sports or events.
Mayor Alton Porter presented summary and recommendation and answered Council's questions.
Assistant City Attorney Clark Askins read: RESOLUTION 2004-16 - A RESOLUTION OF THE CITY OF
LA PORTE, TEXAS, ENCOURAGING THE "WEAR ORANGE DAY" PROGRAM EVERY FRIDAY TO
SHOW SUPPORT FOR LA PORTE BULLDOG SPORTS OR EVENTS.
Motion was made bv Councilmember Rigby to aoprove Resolution 2004-16 as oresented by Mayor Porter.
Second by Councilmember Clausen, Motion carried.
Ayes: Engelken, Beasley, Griffiths, Moser, Mosteit, Rigby, Clausen and Porter
Nays: None
Abstain: None
4. A. Mayor Porter presented Imogene Pulleine with a Proclamation in honor of "Constitution Week".
City Council Regular Meeting, puwearing and Workshop Meeting - septem.13, 2004 - Page 2
B, Jay Dunham and a group of senior citizens presented Council with a Proclamation in honor of "The La
Porte Senior Services Center". They thanked Mayor and City Council for such a great facility, and
informed Council they appreciate the services provided,
s. CONSENT AGENDA
A, Council to consider approval of the Minutes of the Regular Meeting and Public Hearings held on August
23, 2004.
B. Council to consider approval of an ordinance authorizing an agreement with Null Lairson for auditing
services for a one-year period (September 30,2004).
C. Council to consider adopting an ordinance amending Fiscal Year 2004-05 Budget for the Hotel/Motel
Occupancy Tax Fund for the one time transfer to the Sylvan Beach Fund for repairs on the pier.
D. Council to consider amending Ordinance No, 2001-2505 confirming appointments for the members of the
Civil Service Commission,
Motion was made by Councilmember Griffiths to table items C and D. and approve items A and B as
presented, Second by Councilmember Moser. Peter Griffiths withdrew motion and each item was discussed
and voted on independently,
A, Motion was made bv Councilmember Griffiths to approve Item A as oresented. Second by
Councilmember Moser.
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
B, Councilmember Rigby had questions regarding this item. Motion was made by Councilmember Griffiths
to approve Items B as presented, Second by Councilmember Rigby.
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
C.ID. Motion was made bv Councilmember Griffiths to table Items C and D as Dresented. Second
by Councilmember Moser,
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS
WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA
Norvell Cone of 1517 Garden Walk, Deer Park, Texas 77536 requested Item 10 be put back on the table to
move forward, so he can get on with his life.
Paul Hickenbottom of 521 South 3rd Street, La Porte, Texas 77571 voiced his concerns regarding the health
insurance changes,
7. Open Public Hearing - Mayor Porter opened the Public Hearing at 7:02 p.m.
Review by Staff - Interim Planning Director Wayne Sabo provided an overview of taking action on an
ordinance for 1.75 acres ofland located along Spencer Highway to rezone the property from R-l to GC for
proposed Fire Station No, 2 to be located at 9710 Spencer Highway.
City Council Regular Meeting, PUbl.earing and Workshop Meeting - Septemb., 2004 - Page 3
Public Input - There were no citizens wishing to speak.
Recommendation of Staff - The Planning and Zoning Commission recommends for Council to approve
Rezone Request #R04-008 as presented by Mr, Sabo.
The Public Hearing was closed at 7:05 p.m.
8. Council to consider approval of Ordinance 1501-ZZZ as presented by Mr. Sabo.
Assistant City Attorney Clark Askins read: ORDINANCE 1501-ZZZ - AN ORDINANCE AMENDING THE
CODE OF ORDINANCES OF THE CITY OF LA PORTE, CHAPTER 106, MORE COMMONLY
REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTE, BY CHANGING THE
ZONING COMMERCIAL AS REQUESTED FOR THE PROPERTY LOCATED AT 9702 & 9710
SPENCER HIGHWAY HEREIN DESCRIBED; MAKING CERTAIN FINDINGS OF FACT RELATED TO
THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN
EFFECTIVE DATE HEREOF.
Motion was made by Councilmember Clausen to approve Ordinance 1501-ZZZ as Dresented bv Mr. Sabo.
Second by Councilmember Engelken, Motion carried,
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
9. Council to consider approving a takings resolution for an approximate '10 ft. x 15 ft. parcel at the northeast
comer of North 23rd Street and Spencer Highway,
Interim Planning Director Wayne Sabo presented summary and recommendation and answered Council's
questions,
Mayor Porter read: RESOLUTION 2004-15 - A RESOLUTION AUTHORIZING THE ACQUISITION OF
TRACTS OF LAND FOR THE COMPLETION OF A POLICE STATION AND MAINTENANCE
PURPOSES IN THE CITY OF LA PORTE; FINDING COMPLIANCE WITH THE OPEN MEETINGS
LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF,
Motion was made by Councilmember Griffiths to aDDrove Resolution 2004-15 as presented by Mr. Sabo.
Second by Councilmember Moser, Motion carried.
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
10. Council to consider approving a takings resolution for approximately 2,9724 acres ofland to be used to
construct channel F 1 0 1-06-0 I for drainage purposes.
Assistant City Manager John Joerns presented summary and recommendation and answered Council's
questions,
Assistant City Attorney Clark Askins read: RESOLUTION 2004-13 - A RESOLUTION AUTHORIZING
THE ACQUISITION OF TRACTS OF LAND FOR DRAINAGE AND FLOOD CONTROL PURPOSES IN
THE CITY OF LA PORTE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND
PROVIDING AN EFFECTIVE DATE HEREOF.
Motion was made bv Councilmember Clausen to approve Resolution 2004-13 as Dresented bv Mr. Joems.
Second by Councilmember Mosteit. Motion carried.
City Council Regular Meeting, Purearlng and Workshop Meeting - Septem.13, 2004 - Page 4
Ayes: Engelken, Beasley, Griffiths, Moser, Mosteit, Rigby, Clausen and Porter
Nays: None
. Abstain: None
11. This item was presented during the first part of the meeting.
12. Council to consider recommendation to approve the amendment of Ordinance 1285-0 to 1285-P to establish
the current authorized classifications in Civil Service.
Police Ch!efRichard Reffpresented summary and recommendation and answered Council's questions
Assistant City Attorney Clark Askins read: ORDINANCE 1285-P - AN ORDINANCE AMENDING
ORDINANCE NO. 1285, "AN ORDINANCE IMPLEMENTING POLICEMEN'S CIVIL SERVICE;
ESTABLISHING CLASSIFICATIONS; NUMBER OF AUTHORIZED POSITIONS IN EACH
CLASSIFICATION CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE
OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF,"
Motion was made bv Councilmember Rigby to apDrove Ordinance 1285-P as presented by Chief Reff. Second
by Councilmember Beasley, Motion carried.
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
13. Council to consider approval or other action regarding an ordinance approving and authorizing the City
Manager to negotiate a three-year contract with Humana Health Care.
Human Resources Manager Sherri Sampson presented summary and recommendation and answered Council's
questions,
Assistant City Attorney Clark Askins read: ORDINANCE 2004-2777 - AN ORDINANCE AUTHORIZING
AND APPROVING AN AGREEMENT WITH HUMANA INSURANCE COMPANY, FOR
ADMINISTRATIVE SERVICES OF THE CITY'S MEDICAL PLAN, EFFECTIVE JANUARY 1,2005;
ADOPTING "HEALTH SERVICE PLAN DESIGN" OPTIONS; APPROVING AN EMPLOYEE
CONTRIBUTION SCHEDULE SERVICES AGREEMENTS; 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 bv Councilmember Rigby to table this item until the questions (*see below) have been
answered, Second by Councilmember Moser. Motion carried,
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby and Clausen
Nays: Mayor Porter and Griffiths
Abstain: None
*Questions:
. Requested a phase in or charging more for new employees option
. On August 18th the question was raised as to how many times during the last three (3) years did we
have multiple stop loss cases
. What number of total employee population did not file a claim
. It was noted Mike Mosteit asked over the last ten (10) years how many retirees historically dropped
plan coverage compared to how many retirees stay on the plan
14. Council to consider voting a delegate and alternate voting delegate for the National League of Cities
Conference,
City Council Regular Meeting, puwearing and Workshop Meeting - septeml13, 2004 - Page 5
There was no action on this item due to Mayor and Council not attending the Conference.
15. Council to consider a motion to request the Planning and Zoning Commission to consider amendments to
Chapter 106, Sections 106-521; Table A, industrial uses, to amend, change or modify conditions to allow
Truck Stops in a Business Industrial Zone.
Assistant City Manager John Joems presented summary and recommendation and answered Council's
questions.
Motion was made bv Councilmember Moser to consider proposed amendments in conditions to allow Truck
Stops in a Business Industrial Zone as Dresented bv Mr, Joems. Second by Councilmember Griffiths, Motion
carried,
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
This item will be forwarded to the Planning and Zoning Commission.
16. Council to consider a motion for the Planning and Zoning Commission to consider proposed amendments to
Chapter 106, Sections 106-443 and 106-522; to amend, change of modify maximum height limits permitted in
commercial and industrial zones,
Interim Planning Director Wayne Sabo presented summary and recommendation and answered Council's
questions.
Motion was made bv Councilmember Beaslev to have the Planning and Zoning Commission review this item
as Dresented bv Mr. Sabo. Second by Councilmember Clausen. Motion carried.
Ayes: Beasley, Mosteit, Engelken, Moser, Rigby, Clausen, Porter and Griffiths
Nays: None
Abstain: None
17. Council received 90-day Report from Emergency Services Coordinator Jeff Suggs,
18. The Regular Meeting closed and the Workshop Meeting opened at 7:55 p.m.
Mayor Porter discussed appointments of Boards and Commissions.
The Airport Advisory Board to check on Position 5 for Airport Manager and inform Council. City Secretary
Martha Gillett will provide the enabling ordinance, outlining appointment and duties of Position 5. It was
suggested that Deborah Rihn, Nick Hooke, Dan Myhaver and William Gray to be on the Board for another
term. Mayor Alton Porter will contact members to determine if they wish to continue serving on the Board.
The Alliance Board will consist of Assistant City Manager John Joem~ and City Manager Debra Feazelle.
Council suggested Mr, Joems attend as he handles economic development for the City.
Bay Area Houston will consist of Councilmember Barry Beasley and Councilmember Mike Mosteit. Bruce
Meismer resigned his position, Assistant City Manager John Joems will continue to be the Staff Liaison.
Bayport Expansion Review Committee will continue to consist of Councilmember Chuck Engelken,
Councilmember Mike Mosteit and Councilmember Peter Griffiths.
The Board of Directors of the City of La Porte Reinvestment Zone Number One Position 2 Paul Larson's term
expired August 31, 2004, Councilmember Tommy Moser nominated Doug Martin for Position 2. There is a
possibility that Lindsay Pfeiffer may accept the County slot, yvith Assistant City Manager John Joems taking
the City slot. It was suggested that Chester Pool and Horace Leopard serve another term. Mayor Alton Porter
City Council Regular Meeting, pU.Hearing and Workshop Meeting - septem.13, 2004 - Page 6
will telephone Paul Larson regarding replacement, Chester Pool and Horace Leopard regarding serving
another term, and Harris County,
Chapter 172 Board ofTI11stees will add Insurance Board to the title ofthe Board, City Secretary Martha Gillett
will check with the City Attorney regarding a new name, Mayor Alton Porter will follow-up on this Board.
The City of La Porte Audit Committee Member Councilmember Peter Griffiths resigned as an alternate
member. Councilmember Barry Beasley replaced the open position that the late Councilmember James
Warren held, Councilmember Chuck Engelken and Councilmember Howard Ebow continue as members on
the Committee, Councilmember Louis Rigby will serve as Alternate Member 1 and Councilmember Tommy
Moser will serve as Alternate Member 2,
The City of La Porte Municipal Judges and Alternate Judges appointments had no changes.
The Civil Service Commission has some pending questions. The Director of.this Commission will be
appointed by the Commission, not by the City Manager. Staff to bring back, one opinion has been issued by
the Legal Department.
The Fire Code Review Committee will be contacted by each Councilmember contacting their District
Representative. There may be a question regarding District 6 Member Emery Farkas, City Secretary to ask
Fire Marshal Laurie Christensen how often this Committee will meet regarding fire codes.
The Harris County Appraisal District Representative will continue to be Mr. Bill Harry,
The HGAC Representatives will be City Representative Councilmember Chuck Engelken and Alternate
Representative Councilmember Barry Beasley, replacing Councilmember Peter Griffiths.
Confirmation is needed as to who appoints members to the La Porte Area Water Authority. Authority
members Chester Pool's and Paul Berner's terms expired,
The La Porte Development Corporation Committee Member Bruce Meismer will be replaced by
Councilmember Mike Clausen and Committee Member Peter Griffiths will be replaced by Councilmember
Tommy Moser, Mayor Alton Porter will confirm if Committee Members Bill Love and Pat Muston are
willing to serve another term
The La Porte Health Authority (there wasn't a notation on this item)
The City of La Porte Development Authority is the same Authority as TIRZ,
The Main Street District Committee (there wasn't a notation on this item)
The Mayor's Advisory Committee (there wasn't a notation on this item)
The Planning and Zoning District 4 Commission Member Dottie Kaminski will continue in her position; as
will District 5 Commission Member Paul Berner, with District 6 Member being suggested by Councilmember
Mike Clausen and Hal Lawler as Alternate Member at a future meeting. Mayor Alton Porter to call members
and candidates,
The Southeast Texas Housing Finance Corporation Board had no revisions.
The Texas Municipal League delegates will be reviewed.
The Zoning Board of Adjustment Alternate 1 Member Barbara Norwine will be replaced with Mr. Lawrence
McNeal. Mr, Bernard Legrand is expiring as Alternate 2 Member, City Secretary will contact Mrs. Norwine.
Councilmember Rigby will make a suggestion for a member at the next meeting.
At this time, there are no revisions for the Election Workers,
City Council Regular Meeting, PU.Hearing and Workshop Meeting - septem.13, 2004 - Page 7
The Construction Board needs to be followed up on to determine their ~urrent status,
Another advertisement for Boards and Commissions will be put in the "Bay~~ore Sun Sunspots".
The Workshop Meeting closed and the Regular Meeting reconvened at 8:47 p,m,
19. Administrative Reports
Assistant City Manager John Joerns reminded City Council and Staff that Bill Bailey's 220d Annual Gumbo
Gala on Tuesday, September 14,2004, at the Pasadena Convention Center from 5:30 p.m. until 8:00 p.m.; the
Chamber of Commerce Annual Steak Cookout on Thursday, September 16,2004, at 6:30 p.m. at the DuPont
Recreation Center; City Health Fair on Friday, September 17,2004, at the Recreation and Fitness Center Gym;
the La Porte Community Civic Club Spaghetti Supper on Friday, September 17, 2004, at 7:00 p.m. at the
Jennie Riley Center; the Neighborhood Centers Annual Banquet on Thursday, September 23,2004, at 6:30
p,m, at the Houston Yacht Club; the Alliance Banquet on Tuesday, September 28, 2004, at the Marriott Hobby
Airport at 6 p,m,; and the Council Retreat on Saturday, October 2,2004, at the La Porte Library.
20. Council Comments
Clausen, Rigby, Moser, Beasley, Griffiths, Engelken, Mosteit and Porter had comments. City Secretary
Martha Gillett will check on Betty Waters. Mayor and Council offered condolences for Susan Turner's loss of
her Father, Mayor and Council were complimentary of the City's web site.
21. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW,
CHAPTER 551.071 THROUGH 551.076, 551-087, TEXAS GOVERNMENT CODE (CONSULTATION
WITH ATTORNEY~ DELffiERATION REGARDING REAL PROPERTY, DELIBERATION
REGARDING PROSPECTIVE GIFR OR DONATION, PERSONNEL MATTERS, DELIBERATION
REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF
ANOTHER WITNESS IN AN INVESTIGATION, DELIBERATION REGARDING ECONOMIC
DEVELOPMENT NEGOTIATIONS)
551,074- (Personnel Matter) - City Secretary's EvaluationlPerformance
Meet with City Manager, City Attorney to discuss land acquisition, exchange, lease or value of real property.
Council Retired to Executive Session at 9:03 p.rn,
31. CONSIDERATIONS AND POSSmLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE
SESSION
There was no action taken during Executive Session.
32. There being no further business to come before Council, the Regular Meeting was duly adjourned at 9:28 p.m.
Respectfully submitted,
<-m~ ~
M~; Gillett~RMC
City Secretary
Passed and approved on this 27th day of September 2004
~c!.P~
Mayor Alton E. Porter
e
e
B
\
e
e
UNCIL AGENDA ITEM
Appropriation
Requested By: C nthia B. Alexander
Source of Funds:
Department: Finance
Account Number:
Report: X Resolution:
Ordinance:
Amount Budgeted:
Exhibits: Investment Policv
Amount Requested:
Exhibits:
Budgeted Item:
YES
NO
Exhibits:
SUMMARY & RECOMMENDATION
The City Council of the City of La Porte originally adopted an Investment Policy on January 13, 1992, by Ordinance
No. 1802. The policy was last amended in February 2003. The Governmental Accounting Standard's Board
(GASB) Pronouncement 31 requires that a City must present the Investment Policy to Council annually.
On July 26, 2004, the Finance Department presented the Investment Policy to the Audit Committee for review. No
changes to the actual policy are recommended at this time, but the Approved BrokerlDealer Exhibit has been
amended to include the addition of a new approved broker. Exhibit C, the Investment Strategy Statement has also
been amended to reflect changes in the City's benchmark.
Action Required bv Council:
Recommend that the Council receive and approve the report on the Investment Policy.
Approved for Citv Council Aeenda
riA tl!14-J ~ ~J-tfJ~
:6ebra B. Feazelle, ity Manage
9 -:2;) -D Y
Date
City of La Porte, Texas
Investment Policy
Adopt~d by the City Council
Of the City of La Porte
. On January 13, 1992, by
Ordinance No. 1802
, Amended - November 1995
~mebded - August 1997
Amended - November 2000
Amended - February 2003
City of La Porte, Texas
Cynthia B. Alexander
Director of Finance
Shelley Wolny
Investment Officer
e
e
I. POLICY
It is the policy of the City of La Porte, Texas (the "City") to administer and invest its funds in a
manner which will preserve the principal and maintain the liquidity though limitations and
diversification while meeting the daily cash flow requirements of the City, The City will
conform to all statutes governing the investment of the City's funds, including, but not by way
of limitation, the Public Funds Investment Act, Chapter 2256, Texas Government Code (the
"Act").
II, SCOPE
The City will strive to earn a return on funds invested at the highest investment return possible
after taking in consideration the primary goals of preservation of principal and liquidity of funds
invested, consistent with the policy objectives described below. This investment policy applies
to the investment activities of the government of the City of La Porte, Texas,
FUNDS INCLUDED All financial assets of all funds managed by the City, including but not
limited to receipts of Tax Revenues, Charges for Services, Bond Proceeds, Interest Incomes,
Loans and Funds received by the City where the City performs a custodial function.
III. OBJECTIVES
SAFETY The primary objective of the City's investment activity is the preservation of capital
in the overall portfolio, Each investment transaction shall seek first to ensure that capital losses
are avoided, whether they are from securities defaults or erosion of market value.
LIOUIDITY The City's investment portfolio will remain sufficiently liquid to enable the City to
meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved
by matching investment maturities with forecasted cash flow requirements and by investing in
securities with active secondary markets.
YIELD The City's cash management portfolio shall be designed with the objective of regularly
exceeding the average rate of return on the three month U.S. Treasury Bill, The investment
program shall seek to augment returns above this threshold consistent with risk limitations
identified herein and prudent investment principles,
RISK OF LOSS All participants in the investment process shall seek to act responsibly as
custodians of the public trust. Investment Officials shall avoid any transaction that might impair
public confidence in the City's ability to govern effectively, The governing body recognizes that
in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and
must be considered within the context of the overall portfolio's investment return, provided that
adequate diversification has been implemented.
IV, OVERSIGHT RESPONSIBILITY
Oversight Responsibility for the investment activity of the City of La Porte shall rest with the
Audit Committee and the City Manager,
2
e
e
V. RESPONSIBILITY AND CONTROL
DELEGA nON Management responsibility for the investment program is hereby delegated to
the Director of Finance, who shall establish written procedures for the operation of the
investment program, consistent with this investment policy. Such procedures shall include
explicit delegation of authority to persons responsible for investment transactions.
SUBORDINATES All persons involved in investment activities will be referred to as
"Investment Officials," No person shall engage in an investment transaction except as provided
under the terms of this policy and the procedures established by the Director of Finance. The
Director of Finance shall be responsible for all transactions undertaken, and shall establish a
system of controls to regulate the activities of Subordinate Investment Officials.
OUARTERL Y REPORTS The Director of Finance shall submit quarterly an investment report
that summarizes recent market conditions, economic developments and anticipated investment
conditions. The report shall summarize the investment strategies employed in the most recent
quarter, describe the portfolio in terms of investment securities, maturities, risk characteristics,
book values, market values and other features. The report shall explain the quarter's total
investment return and compare the return to budgetary expectations. The report shall include an
appendix that discloses all transactions during the quarter,
ANNUAL REPORTS Within 90 days of the end of the fiscal year, the Director of Finance shall
present a comprehensive annual report on the investment program and investment activity. The
annual report shall include twelve-month and quarterly comparison of returns, and shall suggest
improvements that might be made in the investment program,
PRUDENCE Investments shall be made with the exercise of due care, which persons of
prudence, discretion and intelligence exercise in the management of their own affairs, not for
speculation but for investment considering the probable safety of their own capital as well as the
probable income to be derived, Investment Officials acting in accordance with written
procedures and this investment policy and exercising due diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes, provided
deviations from expectations are reported in a timely fashion and the liquidity and the sale of
securities are carried out in accordance with the terms of this policy.
CONFLICTS OF INTEREST Officials and employees involved in the investment process shall
refrain from personal business activity that could conflict with proper execution of the
investment program, or which could impair their ability to make impartial investment decisions.
DISCLOSURE Employees and Investment Officials shall disclose to the City Manager any
material financial interests in financial institutions that conduct business with the City of La
Porte, and shall further disclose any large financial or investment positions that could be related
to the performance of the City's portfolio, Employees and Investment Officials shall subordinate
their personal investment transactions to those of this jurisdiction, particularly with regard to the
timing of purchases and sales,
TRAINING Investment Officials shall attend at least one investment training session within 12
months after taking office or assuming duties, and shall attend an investment training session
not less than once in a two-year period and receive not less than 10 hours of instruction relating
to investment responsibilities from an independent source approved by the audit committee. For
the purposes of this policy, an "independent source" is defined as a professional organization, an
3
e
e
institute of higher learning or any other sponsor other than a Business Organization with whom
the City may engage in investment transactions. Independent sources that may provide
investment training include the Government Treasurer's Organization of Texas, the University
of North Texas, the Govermhent Finance Officers Association of Texas, or the Texas Municipal
League. Training shall be in accordance with the Public Funds Investment Act and shall include
education in investment controls, security risks, market risks, and compliance with statutes
governing the investment of public funds.
VI. INVESTMENTS
ACTIVE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive
portfolio management philosophy. That is, securities may be sold before they mature if market
conditions present an opportunity for the City to benefit from the trade.
ELIGIBLE INVESTMENTS Assets of funds of the government of the City of La Porte may be
invested in the following as authorized by the Public Funds Investment Act:
A, Obligations of, or Guaranteed by Governmental Entities
1, Except as provided by Subsection 2, the following are authorized investments under this
section:
a) obligations of the United States or its agencies and instrumentalities;
b) direct obligations of this state or its agencies and instrumentalities;
c) collateralized mortgage obligations directly issued by a federal agency or
instrumentality of the United States, the underlying security for which is guaranteed
by an agency or instrumentality of the United States;
d) other obligations, the principal and interest of which are unconditionally guaranteed
or insured by, or backed by the full faith and credit of, this state or the United States
or their respective agencies and instrumentalities; and
e) obligations of states, agencies, counties, cities, and other political subdivisions of any
state rated as to investment quality by a nationally recognized investment rating firm
not less than A or its equivalent.
2, The following are not authorized investments under this section:
a) obligations whose payment represents the coupon payment on the outstanding
principal balance of the underlying mortgage-backed security collateral and pays not
principal (Interest only bonded);
b) obligations whose payment represents the principal stream of cash from the
underlying mortgage-backed security collateral and pays no interest (principal only
bonds);
c) collateralized mortgage obligations that have a final stated maturity date of greater
that 10 years; and
4
e
e
d) collateralized mortgage obligations, the interest rate of which is determined by an
index that adjusts opposite to the changes in a market index,
B. Certificate of Deposit and Share Certificates
1. A certificate of deposit is an authorized investment under this Subsection if the certificate
is issued by a state or national bank domiciled in this state, a savings bank domiciled in
this state, or a state or federal credit union domiciled in this state and is:
a) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor
or the National Credit Union Share Insurance Fund or its successor;
b) secured by obligations that are described by Subsection A, I, including mortgage
backed securities directly issued by a federal agency or instrumentality that have a
market value of not less than the principal amount of the certificates, but excluding
those mortgage backed securities of the nature described by Subsection A, 2; or
c) secured in any other manner and amount provided by law for deposits of the
investing entity,
C. Repurchase Agreements
1, A fully collateralized repurchase agreement is an authorized investment under this
Subsection if the repurchase agreement:
a) has a defined termination date;
b) is secured by obligations described by Subsection A, 1, a); and
c) requires the securities being purchased by the entity to be pledged to the entity, held
in the entity's name, and deposited at the time the investment is made with the entity
or with a third party selected and approved by the entity; and
d) is placed through a primary government securities dealer, as defined by the Federal
Reserve, or a financial institution doing business in this state.
e) repurchase agreements and reverse repurchase agreements shall be entered into only
with dealers who have executed a Master Repurchase Agreement with the City,
2, In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for
a specified time, and sell back at a future date obligations described by Subsection A,
l,a), at a market value at the time the funds are disbursed of not less than the principal
amount of the funds disbursed, The term includes a direct security repurchase agreement
and a reverse security repurchase agreement.
3, Notwithstanding any other law, the term of any reverse security repurchase agreement
may not exceed 90 days after the date the reverse security repurchase agreement is
delivered,
4. Money received by an entity under the terms of a reverse security repurchase agreement
shall be used to acquire additional authorized investments, but the term of the authorized
5
e
e
investments acquired must mature no later than the expiration date stated in the reverse
security repurchase agreement.
D. Banker's Acceptances
I. A banker's acceptance is an authorized investment under this subchapter if the banker's
acceptance:
a) has a stated maturity of270 days or fewer from the date of its issuance;
b) will be, in accordance with its tenns, liquidated in full at maturity;
c) is eligible for collateral for borrowing from a Federal Reserve Bank; and
d) is accepted by a bank organized and existing under the laws of the United States or
any state, if the short-tenn obligations of the bank, or of a bank holding company of
which the bank is the largest subsidiary, are rated not less that A-lor P-l or an
equivalent rating by at least one nationally recognized credit rating agency.
E. Commercial Paper
1, Commercial paper is an authorized investment under this subchapter if the commercial
paper;
a) has a stated maturity of 270 days or fewer from the date of its issuance; and
b) is rated not less than A-lor P-I or an equivalent rating by at least;
c) two nationally recognized credit rating agencies; or
d) one nationally recognized credit rating agency and is fully secured by an irrevocable
letter of credit issued by a bank organized and existing under the laws of the United
States or any state.
F. Mutual Funds
1. A no-load money market mutual fund is an authorized investment under this subchapter
if the mutual fund:
a) is registered with and regulated by the Securities and Exchange Commission;
b) provides the investing entity with a prospectus and other infonnation required by the
Securities and Exchange Act of 1934 (15 U.S.C. Section 80a-1 et seq,);
c) has a dollar-weighted average stated maturity of90 days or fewer; and
d) includes in its investment objectives the maintenance of a stable net asset value of $1
for each share.
2. In addition to a no-load money market mutual fund pennitted as an authorized investment
in Subsection I, a no-load mutual fund is an authorized investment under this Section if
the mutual fund:
6
e
e
a) is registered with the Securities and Exchange Commission;
b) has an average weighted maturity of less than two years;
c) is invested exclusively in obligations approved by this subchapter;
d) is continuously rated as to investment quality by at least one nationally recognized
investment rating firm of not less than AAA or it equivalent; and
e) conforms to the requirements set forth in Sections G, 2 and 3 relating to the eligibility
of investment pools to receive and invest funds of investing entities.
3. An entity is not authorized by this section to:
a) invest in the aggregate more than 80 percent of its monthly average fund balance,
excluding bond proceeds and reserves and other funds held for debt service, in
money market mutual funds described in Subsection F, 1 or mutual funds described
in Subsection 2, either separately or collectively;
b) invest in the aggregate more than 15 percent of its monthly average fund balance,
excluding bond proceeds and reserves in other funds held for debt service, in mutual
funds described in Subsection 2;
c) invest any portion of bond proceeds, reserves and funds held for debt service, in
mutual funds described in Subsection 2; or
d) invest its funds or funds under its control, including bond proceeds and reserves and
other funds held for debt service, in anyone mutual fund described in Subsection 1 or
2 in an amount that exceeds 10 percent of the total assets of the mutual fund,
Q, Investment Pools
1, An entity may invest its funds and funds under its control through an eligible investment
pool if the governing body of the entity by rule, order, ordinance, or resolution, as
appropriate, authorizes investment in the particular pool. An investment pool shall invest
the funds it receives from entities in authorized investments permitted by this subchapter,
2, To be eligible to receive funds from and invest funds on behalf of an entity under this
chapter, an investment officer or other authorized representative of the entity an offering
circular or other similar disclosure instrument that contains, at a minimum, the following
information:
a) the types of investments in which money is allowed to be invested;
b) the maximum average dollar-weighted maturity allowed, based on the stated maturity
date, of the pool;
c) the maximum stated maturity date any investment security within the portfolio has;
d) the objectives of the pool;
e) the size of the pool;
7
e
e
f) the names of the members of the advisory board of the pool and the dates their terms
expire;
g) the custodian bank that will safekeep the pool's aSsets;
h) whether the intent of the pool is to maintain a net asset value of one dollar and the
risk of market price fluctuation;
i) whether the only source of payment is the assets of the pool at market value or
whether there is a secondary source of payment, such as insurance or guarantees, and
a description of the secondary source of payment;
j) the name and address of the independent auditor of the pool;
k) the requirements to be satisfied for an entity to deposit funds in and withdraw funds
from the pool and any deadlines or other operating policies required for the entity to
invest funds in and withdraw funds from the pool; and
1) the performance history of the pool, including yield average dollar-weighted
maturities, and expense ratios.
3. To maintain eligibility to receive funds from and invest funds on behalf of an entity under
this chapter, an investment pool must furnish to the investment officer or other
authorized representative of the entity:
a) investment transaction confirmations; and
b) a monthly report that contains, at a minimum, the following information:
i. the types and percentage breakdown of securities in which the pool is invested;
11, the current average dollar-weighted maturity, based on the stated maturity date,
of the pool;
iii. the current percentage of the pool's portfolio in investments that have stated
maturities of more than one year;
iv. the book value versus the market value of the pool's portfolio, using the
amortized cost valuation;
v, the size of the pool;
VI. the number of participants in the pool;
vii. the custodian bank that is safekeeping the assets of the pool;
viii. a listing of daily transaction activity of the entity participating in the pool;
ix, the yield and expense ratio of the pool;
x, the portfolio managers of the pool; and
8
e
e
Xl. any changes or addenda to the offering circular.
4. An entity by contract may delegate to an investment pool the authority to hold legal title
as custodian of investments purchased with its locai funds,
5. In this section, "yield" shall be calculated in accordance with regulations governing the
registration of open-end management investment companies under the Investment
Company Act of 1940, as promulgated from time to time by the Federal Securities and
Exchange Commission,
6. To be eligible to receive funds from and invest funds on behalf of an entity under this
chapter, a public funds investment pool created to function as a money market mutual
fund must mark its portfolio to market daily, and, to the extent reasonably possible,
stabilize a $1 net asset value, If the ratio of the market value of the portfolio divided by
the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings
shall be sold as necessary to maintain the ratio between 0.995 and 1.005,
7. To be eligible to receive funds from and invest funds on behalf of an entity under this
chapter, a public funds investment pool must have an advisory board composed:
a) equally of participants in the pool and other persons who do not have a business
relationship with the pool and are qualified to advise the pool, for a public funds
investment pool created under Chapter 791 and managed by a state agency; or
b) of participants in the pool and other persons who do not have a business relationship
with the pool and are qualified to advise the pool, for other investment pools.
8. To maintain eligibility to receive funds from and invest funds on behalf of an entity under
this chapter, an investment pool must be continuously rated no lower that AAA or AAA-
m or at an equivalent rating by at least one nationally recognized rating service.
EXISTING INVESTMENTS Any investments currently held that do not meet the guidelines of
this policy shall be reviewed to determine the ability to liquidate. If the investment cannot be
liquidated because of material adverse change in the value since the time of purchase, and
holding the investment to maturity does not negatively affect disbursements or cash flow, a
recommendation of holding said investment to maturity is acceptable,
PROCUREMENT Investments of subsections A-G of this section, excluding new issues, may
be made only after competitive bids are solicited from at least three sources.
MONITORING The market value of each investment shall be obtained monthly from a source
such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service
and reported on the monthly investment reports,
LENGTH OF INVESTMENTS The maximum stated maturity, from the date of purchase, for
any individual investment may not exceed 5 years and the maximum dollar-weighted average
maturity for the pooled fund group (investment portfolio) may not exceed 2 years.
DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment
portfolios, Assets held in the common investment portfolio shall be diversified to eliminate the
9
e
e
risk of loss resulting from one concentration of assets in a specific maturity, a specific issuer or
a specific class of securities, Diversification strategies shall be determined and revised
periodically by the Audit Committee,
In establishing specific diversification strategies, the following general policies and constraints
shall apply:
A. Portfolio maturities shall be staggered in a way that protects interest income from the
volatility of interest rates and that avoids undue concentration of assets in a specific maturity
sector, Securities shall be selected which provide for stability of income and reasonable
liquidity,
B. The Audit Committee shall establish strategies and guidelines for the percentage of the total
portfolio that may be invested in securities other than repurchase agreements, Treasury bill
and notes, or insured and collateralized certificates of deposits. The Audit Committee shall
conduct a semi-annual review of these guidelines, and shall evaluate the probability of
market and default risk in various investment sectors as part of its considerations.
VII. SELECTION OF BANKS AND DEALERS
BIDDING PROCESS Depositories shall be selected through the City's banking services
procurement process, which shall include a formal request for proposal (RFP) issued every two
(2) years. In selecting depositories, the credit worthiness of institutions shall be considered, and
the Director of Finance shall conduct a comprehensive review of prospective depositories credit
characteristics and financial history,
INSURABILITY Banks and Savings & Loans Associations seeking to establish eligibility for
the City's competitive certificate of deposit purchase program, shall submit financial statements,
evidence of Federal insurance and other information as required by the Director of Finance.
PRIMARY DEALERS AND APPROVED LIST For brokers and dealers of government
securities, Investment Officials shall select only those dealers reporting to the Market Reports
Division of the Federal Reserve Bank of New York, also known as "primary government
securities dealers," unless a comprehensive credit and capitalization analysis reveals that other
firms are adequately financed to conduct public business. Before engaging in investment
transactions with a broker/dealer, the Investment Official shall have received, from a Qualified
Representative of said firm, a signed Certification Form. (Exhibit B) This form shall attest that
the individual responsible for the City's account with that firm has reviewed the City's
Investment Policy and that the brokerage firm has implemented reasonable procedures and
controls in an attempt to preclude imprudent activities arising out of investment transactions
conducted between the City and the brokerage firm. The audit committee shall at least annually
review, revise, and adopt a list of qualified brokers that are authorized to engage in investment
transactions with the City, (Exhibit A)
VIII. SAFEKEEPING AND CUSTODY
INSURANCE OR COLLATERAL All bank deposits, certificates of deposit, and repurchase
agreements shall be secured by pledged collateral. Bank deposits and certificates of deposit
shall be collateralized with a market value equal to no less than 102% of the deposits plus
accrued interest less than an amount insured by FDIC, Repurchase agreements shall be
monitored daily, Evidence of the pledged collateral shall be maintained by the Director of
10
e
e
Finance or a third party financial institution. Repurchase agreements shall be documented by
specific agreement noting the collateral pledged in each agreement. Collateral shall be reviewed
monthly to assure the market value of the securities pledged equals or exceeds the related bank
balances.
SAFEKEEPING AGREEMENT All safekeeping arrangements shall be in accordance with a
Safekeeping Agreement approved by the Audit Committee which clearly defines the procedural
steps for gaining access to the collateral should the City of La Porte determine that the City's
funds are in jeopardy. The safekeeping institution, or Trustee, shall be the Federal Reserve Bank
or an institution not affiliated with the firm pledging the collateral, The safekeeping agreement
shall include the signatures of the City of La Porte, the firm pledging the collateral, and the
Trustee,
COLLATERAL DEFINED The City of La Porte shall accept only the following securities as
collateral:
A. FDIC insurance coverage;
B, United States Treasuries and Agencies;
C, Texas State, City, County, School or Road District bonds with a remaining maturity of ten
(10) years or less with rating from a nationally recognized investment rating firm and having
received a rating of not less than A or its equivalent;
D, Other securities as approved by the Audit Committee.
SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of
Finance or the City's independent auditors,
DELIVERY VERSUS PAYMENT Treasury Bills, Notes & Bonds and Government Agencies'
securities shall be purchased using the delivery versus payment method. That is, funds shall not
be wired or paid until verification has been made that the collateral was received by the Trustee,
The collateral shall be held in the name of the City or held on behalf of the City. The Trustee's
records shall assure the notation of the City's ownership of or explicit claim on the securities.
The original copy of all safekeeping receipts shall be delivered to the City.
IX. MANAGEMENT AND INTERNAL CONTROLS
The Director of Finance shall establish a system of internal controls, which shall be reviewed by
an independent auditor, The controls shall be designed to prevent losses of public funds arising
from fraud, employee error, misrepresentation by third parties, unanticipated changes in
financial markets, or imprudent actions by employees or Investment Officials of the City,
Controls and managerial emphasis deemed most important that shall be employed where
practical are:
A, Control of collusion.
B. Separation of duties,
C. Separation of transaction authority from accounting and record keeping.
II
e
e
D. Custodian safekeeping receipts records management.
E. Avoidance of bearer-form securities.
F. Clear delegation of authority.
G. Documentation on investment bidding events,
H. Written conformation of telephone transactions.
I. Reconcilement and comparisons of security receipts with the investment subsidiary records.
J. Compliance with investment policies,
K. Accurate and timely reports.
L. Validation of investment maturity decisions with supporting cash flow data.
M.Adequate training and development of Investment Officials.
N. Verification of all interest income and security purchase as sell computations,
O. Review of financial condition of all brokers, dealers and depository institutions.
p, Staying informed about market conditions, changes, and trends that require adjustments in
investment strategies,
COMPLIANCE AUDIT The City of La Porte shall perform, in conjunction with its annual
financial audit, a compliance audit of management controls on investments and adherence to the
entity's established investment policies. The audit shall include a formal review of the quarterly
investment reports by an independent auditor and the results reported to the governing body by
the independent auditor. Also, the governing body shall review its investment policy and
investment strategy not less than annually and adopt a written instrument by rule, order,
ordinance, or resolution stating that it has reviewed the investment policy and strategy, and
recorded any changes made to them.
12
e
e
Exhibit A
City of La Porte
Approved List of BrokerslDealers and Investment Pools
BrokerslDealers
Coastal Securities
First Southwest Company
Duncan Williams, Inc.
Southwest Securities, Inc.
Investment Pools
TexPool
LOGIC Investment Pool
TexSTAR
e
e
Exhibit B
BROKERlDEALER CERTIFICATION FORM
As required by Texas Government Code 2256.005 (k)
CITY OF LA PORTE, TEXAS
The City of La Porte acknowledges that the only means the firm has to preclude
imprudent investment activities arising out of transactions between the firm and
the City is to confirm that all provisions of the City's investment policy are
followed in investment transactions conducted between the firm and the City, and,
the second paragraph below should be read accordingly,
I, as a registered principal for the firm
do hereby certify that I, and the broker covering this account,
have received the investment policy of the City,
We acknowledge that this firm has implemented reasonable internal procedures and
controls in an effort to preclude imprudent investments between the City and the firm,
Signature
Name:
Title:
Date:
e
e
Exhibit C
City of La Porte, Texas
Investment Strategy Statement
The City of La Porte, Texas (the "City") will strive to administer and invest its pooled
funds at the highest investment return possible while always taking into account the
primary goals of preservation of principal and liquidity of funds invested consistent with
the City's investment policy.
The City's funds, which are pooled together and constitute the investment portfolio,
include all financial assets of all funds managed by the City, including but not limited to
receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and
funds received by the City where the City performs a custodial function.
The City will never invest its funds in a security that is deemed unsuitable to the financial
requirements of the City. Maturities will be staggered in a manner that meets the cash
flow needs of the City.
The primary investment objective is the preservation and safety of principal. Each
investment transaction shall seek first to ensure that principal losses are avoided, whether
they are from security defaults or erosion of market value.
The City's investment portfolio will remain sufficiently liquid to enable the City to meet
operating requirements that might be reasonably anticipated. Liquidity shall be achieved
by matching investment maturities with forecasted cash flow requirements and by
investing in securities with active secondary markets.
The City shall always maintain a highly diversified investment portfolio in order to
reduce the amount of credit and market risk exposed to the City's portfolio.
After first considering safety and liquidity, the City's investment portfolio shall be
designed with the objective of regularly exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the City's weighted average maturity in
days. the tmee maRth U.S. Tressary Bill. Tile tv.-a year TFeasary Nete may alsa Be Rsea
te me8StH'e the perferm&:Bee af the in.JestmeBt paftfelia te the e1:1HeBt market. The City
shall seek to augment returns above this threshold consistent with risk limitations
identified in the City's investment policy and prudent investment principles.
e
e
c
e
e
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: se:tembe:~ 2004
Requested By: W~)'ne S_!l_ ltVy::..
Aoorooriation
Source of Funds: General Funds
Account Number:
Amount Budgeted:
Amount Requested:
001-9092-524-6021
$56.282.75
520.150.00
Department:
PJa1l1li1l1l
Report:
Resolution:
Ordinance:
Budgeted Item: YES
NO
Exhibits:
Memo of Reeommendation and
Bid Tabulation
Ridder'~ I,id
Exhibits:
SUMMARY & RECOMMENDATION
On July 26, 2004 City Council reviewed the findings of the Dangerous Building Board of Inspection. Following
that review, staff requested and was granted a public hearing date of August 23,2004. At that meeting, seven (7) of
the ten (10) structures considered were condemned. The remaining three (3) structures were tabled and are being
addressed separately. Two of the three structures were tabled for thirty (30) days and the final one was tabled for
ninety (90) days.
. .
As Council may remember, shortly before the 08-23-04 meeting, the owner of 703 W. Tyler obtained a demolition
permit and began removing that structure. That demolition was completed so only six (6) structures remain for
demolition by the City.
Sealed Bids for demolition of the six (6) remaining structures was advertised and bids were opened on September
13, 2004 (see attached bid tabulation). The low bidder is All Texas Demolishing with a bid amount of $20, 150.00.
All Texas Demolishing has previously performed demolition work for the city and have had a good working
relationship with staff.
We will note that on 08-27-04 the new owner of 1406 Browning St. obtained a thirty (30) day demolition permit for
demolishing the structure on his own. Since no demolition work had been done at the time of advertisement, this
location was included in the bids we received. As of 09-1 5-04, a field mspection revealed minimal progress so staff
spoke with the owner and advised him of the bid price we received on his structure and that his permit is about to
expire with minimal progress :noted, We spoke with the owner and he understands this address was included in our
bid so he says he plans to move forward more quickly. We will continue to monitor the site and report our f"mdings
at the 09-27-04 co~cil meeting. .
Staff recommend!; the bid containing all six (6) structures be placed on a consent agenda, awarding this bid to All
Texas Demolishing and appropriatjng $20,150,00 to fund said contr:act.Should Council decide to reduce/adjust the
bid by removing the Browning S1. location, staff can notify the All Texas accordingly.
Action Reouired ~v Council:
Consider awarding bid for demolition contract.
ADDroved for City Council Ae:enda
~~~,:i~
1 '-dd-tJ~
Date
e
e
CIJY Qf~ PORTE
INTEROFFICE MEMORANDUM
?UaC;1;.1~1J'J0 !JJ,}J~J01'1
To:
Wayne Sabo, Interim Director of Planning
Debbie Wilmore, Chief Building Official
From:
Susan Kelley, Purchasing Manager
Subject:
Sealed Bid #04036 - Demolition of Buildings
Date:
September 14, 2004
Advertised, Sealed Bids #04036 - Demolition of Buildings were opened and read on
September 13, 2004. Bid requests were mailed to seventeen (17) vendors with ten (10)
retumed bids and one no-bid.
Copies of the bids are attached for your review and evaluation.
This bid may be placed on the agenda for the City Council meeting on September 27.,
2004. Please remember to submit your agenda request form to the City Secretary, Finance,
and Purchasing Manager by September 20th. The following items should be included:
~ Explanation of recommendation, if other than apparent low bid
~ Bid tabulation
~ Bidder's List
~ City Council Meeting Request/Checklist
Attachment: Bid Copies
Bid Tabulation
Bidder's List
BID TABULATION
BID # 04036 - DEMOLITION OF BUILDINGS
-
K&K ANTEX GULF
DESCRIPTION ALL TEXAS TRACTOR INLAND KENNEDY TANDEM, TRUCKING JTB AAR INC ANGEL COAST CST
DEMO ENVIRON DEMOLITION INC. SERVICES GONZALEZ SAND ENVIRON
SERVICE & EQUIP PRODUCTS
1.3104 s. Hwv 146 $3850.00 $5,310.00 $4.487.00 $4,250.00 $9,900.00 $6 300.00 $8115.80 $7 300.00 $15,000.00 $29040.00 NO BID
2. 405 Bayshore Dr. $3,850.00 $3,790.00 $3,880.00 $3,250.00 $3,000.00 $5,400.00 $4,457.60 $5,400.00 $6,500.00 $7,572.00 NO BID
3. 618 S. Iowa $3,850.00 $5,210.00 $4,000.00 $3,800.00 $5,250.00 $7,250.00 $7,466.40 $5,400.00 $14,000.00 $8,791.20 NO BID
. , i
4. 222 N. 5th St. $3,900.00 $4,210.00 $4,280.00 $4,800.00 $5,000.00 $3,950.00 $5,742.50 $6,100.00 $8,500.00 $8,102.40 NO BID
.
5. 413 S. 2nd St. $2,950.00 $2,995.00 $3,295.00 $4,200.00 $3,300.00 $4,400.00 $4,171.50 $5,100.00 $5,500.00 $4,641.60 NO BID
6. 1406 Browning St. $1,750.00 $850.00 $1,950.00 $2,500.00 $3,000.00 $2,900.00 $2,539.80 $3,500.00 $3,000:00 $4,380.00 NO BID
Total $20,150.00 . $22,385.00 $21,892.00 $22,800.00 $29,450.00 $30,200.00 $32,493.60 $32,800.00 $52,500.00 $62,527.20 NO BID
--
Information reflects pricing only and other factors may be considered during the evaluation process
e
e
BIDDER'S LIST
DEMOLITION OF BUILDINGS
SEALED BID #04036
AAR INC.
6640 SIGNA T
HOUSTON, TX 77041
ALL TEXAS DEMOUSHING
5714 DARLING
HOUSTON, TX 77007
ANTEX TRUCKING & EQUIPMENT, INC.
11805 NORTH "0" STREET
LA PORTE, TX 77571
BROTHERHOODRECYCUNG
P.O. BOX 3019
CROSBY, TX 77532
C & C DEMOUTlON, INC.
PO BOX 764
ORANGE, TX 77631-0764
CHERRY DEMOUTION
6131 SELlNSKY
HOUSTON, TX 77048
CST ENVIRONMENTAL, INC.
14010 INTERDRIVE WEST
HOUSTON, TX 77032-3300
DANIEL'S DUMP TRUCK HAUUNG
PO BOX 832
LA PORTE, TX 77572-0832
GBS ENVIRONMENTAL, INC
993 SHELDON RD
CHANNELVIEW, TX 77530
GRAY ENVIRONMENTAL TECH, INC.
PO BOX 58249
HOUSTON, TX 77258-8249
IKON INDUSTRIAL CONTRACTORS
5034 SPENCER HWY
PASADENA, TX 77505
J.T.B. SERVICES INC.
9026 LAMBRIGHT
HOUSTON, TX 77075
KENNEDY DEMOUTION
3535 NASA ROAD ONE, SUITE 71
SEABROOK, TX 77586
. TANDEM, INC.
321 BROADWAY
HOUSTON, TX 77012
K & K TRACTOR SERVICE
3012 RANDOLPH RD
PASADENAjTX77503
B. SMITH CONTRACTORS, INC.
1015 MANSFIELD
HOUSTON, TX 77091
VANCO ABATEMENT & DEMOUTlON CORP.
1500 TRAILS END DRIVE
CLEVELAND, TX 77327
CHAMBER OF COMMERCE
PO BOX 996
LA PORTE, TX 77572-0996
BAYSHORE SUN PUBUSH DATES:
AUGUST 29, 2004
SEPTEMBER 5, 2004
e
D
e
e
e
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Reqnested: SeDtem~~
Requested By: S. Gillett ~
Department: Public Works
Appropriation
Source of Funds: Motor Pool
Account Number: Various
Report: X Resolution:
Ordinance:
Amount Budgeted: $447,345
-*"
Exhibits:
Bid Tabulation and Bidders List
Amount Requested:
$321,527
Exhibits:
Bid Tabulation Review
Budgeted Item: YES
Exhibits:
SUMMARY & RECOMMENDATION
Sealed bids were received on September 13,2004 for replacement vehicles. Bids were sent to fourteen (14) vendors,
with seven (7) returning bids. Low bid submitted for Item 1,3 and 8 do not meet specifications. Low bid for vehicles
meeting specifications was submitted as follows:
BIDDER ITEM BID BUDGETED USER
Philpott Ford 1) - (Four) Pa~ol Cars $85,152.00 * $114,112.00 POLICE
Philpott Ford 1) - (One) PO White $20,888.00 * $28,528.00 POLICE
Philpott Ford 1) - (One) PD Blue $20,888.00 * $28,528.00 COURT
Philpott Ford 2) - (One) Mid-size SUV $ 19,985.00 * $ 26,000.00 FIRE
Philpott Ford 3) - (One) Full-size SUV $ 27,600.00 * $ 30,167.00 FIRE
Philpott Ford 4) - (One) Full-size SUV $ 25,510.00 * $ 32456.00 EMS
Philpott Ford 5) - (One) Mid-size Ext. Cab PU $ 13,331.00 $24,083.00 INSPEC
Philpott Ford 6) - (Three) Y2 Ton Pickup $ 32,277.00 $41,478.00 2PW;
1 CS
Philpott Ford 7) - (Three) 1 ton Cab/Chassis $ 48,519.00 ** $78,729.00 PW
Philpott Ford 8) - (One) 1 Ton Diesel Chassis $ 27.377.00 *** $43,264.00 EMS
TOTAL $321,527.00 $447,345.00
* Budget amount includes pl,lfchase/installation of light bars, sirens, radios, rear seat shields.
~ ** Budget amount includes purchase/installation of three service bodies.
*** Budget amount includes retrofitting existing ambulance module to new chassis.
Action Reauired bv Council: Award bid for all items to Philpott Ford in the amount of$321,527.00.
C; -dd-Olf
Date.
e
e
CITY OF LA PORTE
INTEROFFICE MEMORANDUM
September 15,2004
To: Steve Gillett, Director of Public Works
From: Lee Allen, Equipment Services Superintendent
Subject: Bid Tabulation Review Vehic1es
Item 1: Caldwell County Chevrolet is lo~ bid, does not meet specification regarding rear wheel
drive only. Philpott Ford is next low bid and meets all specifications.
Item 2: Philpott Ford is low bid and meets all specifications.
Item' 3: A. C. Collins Ford is low bid, does not meet specifications regarding alternator amperage
minimum, front bumper requirements, and light bar wiring. Philpott Ford is next low bid and
meets all specifications.
Item 4: Philpott Ford is low bid and meets all specifications.
Item 5: Philpott Ford is low bid and meets all specifications.
Item 6: Philpott Ford is low bid and meets all specifications.
Item 7: Philpott Ford is low bid and meets all specifications.
Item 8: Bayer Motor Company is low bid, does not meet specifications regarding GVWR,
alternator amperage minimum, and factory installed sliding rear window requirement. Philpott
Ford is next low bid meeting all specifications with exception of engine size notation, 7.3-liter
diesel not available. Ford has replaced with 6.0-liter diesel. .
BID TABULATION
BID # 04033 - VEHICLES
COLUMBUS BAYER CALDWELL DON DAVIS
ADAMS FORD PHILPOTT COUNTRY COUNTRY
DESCRIPTION QTY A.C. COLLINS FORD FORD MOTOR CO. CHEV CHEV.
1) Police Vehicles, Black& White 4 $22,478.75 $21,854.00 $21,288.00 $21,687.00 NO BID $19,999.00 NO BID
Police Vehicle, White 1 $21,478.75 $21,467.00 $20,888.00 $21,272.00 NO BID $18,999.00 NO BID
Police Vehicle, Blue 1 $21,478.75 $21,467.00 $20,888.00 $21,292.00 NO BID $18,999.00 NO BID I
Total $132,872.50 $130,350.00 $126,928.00 $129,312.00 NOBID $117,994.00 NO BID
2) Mid-Size Sport Utility Vehicle 1 $20,754.80 $20,717.02 $19,985.00 $20,215.00 $20,547.00 $20,097.00 $20,551.00
3) Full-Size SUV Special Service (Fire) . 1 $28,314.90 $26,513.67 $27,600.00 $28,087.00 $30,780.00 $29,994.00 $31,993.00
4) Full-Size SUV Special Service (EMS) 1 $26,404.90 $26,738.67 $25,510.00 $26,477 .00 $28,390.00 $28,313.00 $30,557.00
5) Mid-Size Pickup w/Extended Cab 1 $14,068.75 $16,191.00 $13,331.00 $15,467.00 $14,117.00 $14,195.00 $14,393.00
6) One-Half Ton Pickup (Supervisor) 3 $13,337.75 $13,356.00 $10,759.00 $11,870.00 $13,248.00 $12,922.00 $13,465.00
Total $40,013.25 $40,068.00 $32,277.00 $35,610.00 $39,744.00 $38,766.00 $40,395.00
7) One Ton Cab & Chassis, Dual Wheel 3 $17,474.05 $18,612.55 $16,173.00 $16,982.00 $17,827.00 $16,747.00 $18,159.00
Total $52,422.15 $55,837.65 $48,519.00 $50,946.00 $53,481.00 $50,241.00 $54,477.00
8) Cab & Chassis w/Ambulance Prep Pk 1 $28,375.23 $28,471.43 $27,377 .00 $28,447.00 $25,863.00 NO BID NO BID
the evaluation
nformation reflects pricing only, and other factors may be considered during
e
.e
. CITYOF.LA PO'RTE
INTEROFFICE MEMORANDUM
PUi1C:i1A3l1'lO !J}'J1S/01'1
To:
Steve Gillett, Public Works Director '
Lee Allen, Equipment Services Superintendent. .
Cherell Daeumer, Buyer W
From:
Subject:
Sealed Bid #04033 - Vehicles
Date:
September 15, 2004
Advertised sealed bids #04033 - Vehicles were opened and read on September 13,
2004. Bid requests were mailed out to fourteen (14) vendors with seven (7) returning
bids.
- ,
A copy of the bids, and a bid tabulation sheet is attached for your review and evaluation,
If requested, Purchasing will be happy to assist in th~ evaluation process. This bid may
be placed on the agenda for the City Council meeting on September 27, 2004. Please
remember to submit your agenda request form to the City Secretary, Finance and
Purchasing Manager by September 20, 2004. The following items should be included
with your agenda request:
Explanation of recommendation, if other than apparent low bid.
Bid Tabulation .
Bidder's List
City ~ouncil Meeting Request/Checklist
Attachment: Bid Copies
Bid Tabulation
Bidder's List
.
. '-
e'
E
. . .
e
e
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: Seotember 27.2004
Aoorooriation
Requested By:
SU!IlRn Kpll~.y
Source of Funds: General Fund
Department:
AdministrationIPurchasin2
Account Number: 001-7071-531-4015
Report: X Resolution:
Ordinance:
Amount Budgeted: 552,000
Exhibits:
Bid Tabulation
Amount Requested: 550,230
Exhibits:
Bidder's List
Budgeted Item: YES NO
SUMMARY & RECOMMENDATION
Advertised Sealed Bid #04032 - Street Materials was opened and read on August 23,2004. Bid requests
were mailed to five (5) are~ suppliers with two (2) returned bids.
One bid was received for each section. Both bids meet specifications and were submitted as follows:
Gulf States Asphalt Section 1- Cut-Back Asphalt $ 7,000.00
Section 2 - Liquid Asphalt $41.480.00
$48,48'0.00
Prime Materials
Section 4 - SS-IH Emulsion
$ 1,750.00
Grand Total
$50,230.00
No bids Were received on Section 3. The anticipated expenditure is minimum and, if necessary, quotes
will obtained at time of purchase,
Using estimated yearly quantities, the total cost for the Street Material Contract will be $50,230. This is a
twenty percent (20%) increase over the last bid,
The contract is for one (1) year with an additional one (1) year option period.
Staff recommends award of Bid #04032 - Street Materials to bidders meeting specifications in the
amount of $50,230, Funds are available,
Action Required bv Council:
Award Bid #04032 - Street Materials in the amount of $50,230.
Aooroved for City Council A2enda
~~~
Debra B. Feazel e, a~r
q-~--D1
Date
e
e
BID TABULATION - STREET MATERIALS - ASPHALT #04032
Ji.
':
. ~~j:.1' ~"'.~ GULF
"
'PRIME STATES
'I MATERIALS ASPHALT
DESCRIPTION . QTY CO.
1, CUT BACK ASPHALT - MC-30 5,000 NO BID $1.40
PICKED UP 100 - 1,000 GALLONS
TOTAL ITEM #1 $7,000,00
2. LIQUID ASPHALT CEMENT
A, AC-5 DELIVERED 5,000 GAL OR MORE 10,000 No Bid $0.99
B. AC-10 DELIVERED 5,000 GAL OR MORE 30,000 No Bid $0.99
C. AC-5 PICKED UP LESS THAN 1,500 GAL 1,000 No Bid $0.94
D. AC-10 ICKED UP LESS THAN 1,500 GAL 1,000 No Bid $0.94
TOTAL ITEM #2 $41,480.00
3. Rubberized Joint & Crack Sealer No Bid No Bid
4. SS-1H Emulsion 2,500 0.70 No Bid
TOTAL ITEM #4 1,750.00
GRAND TOTA~ . I~ $1.,750.00. $48,480.00
Information represents pricing only, and other factors mayor may not
be considered during the evaluation process
'Ii
<
<'
.1'
e
e
BIDDER'S LIST
SEALED BID #04032 - STREET MATERIALS - ASPHALT
BRIDGES ASPHALT
P.O. BOX461171
GARLAND, TX 75046
GULF STATES ASPHALT
P,O. BOX 508
SOUTH HOUSTON, TX 77587
PRIME MATERIALS PRODUCTS
600 CENTURY PLAZA DR. #100
HOUSTON, TX 77073
WRIGHT ASPHALT
704 SHELDON RD SUITE B
CHANNELVIEW, TX 77530
',.
1
SOUTHERN CRUSHED CONCRETE
14329 CRISHMAN ROAD
HOUSTON, TX 77039
CHAMBER OF COMMERCE
P.O. BOX 996
LA PORTE, TX 77572-0996
BAYSHORE SUN PUBLISH DATES:
AUGUST 8, 2004
AUGUST 15, 2004
.
'. .
fhl0 r~~vn
. . W/r5 d.er:e) cd
wtJ (fP'Ct[C .. .
wf~ ftdd I 'H 0 IVk )
Aid ~ V1du fV).. .
. Y1fm 14. l' 7 p,
. .
. . .
e
.
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
September 27. 2004
Appropriation
Requested By: C nthia Alexander Assistant Cit
Source of Funds: N/A
Department: FINANCE
Account Number: N/A
Report:
Resolution:
Ordinance:
Amoun(Budgeted:
Exhibits:
Calendar
Amount Requested:
N/A
Exhibits:
Resolution
Budgeted Item:
Exhibits:
SUMMARY & RECOMMENDATION
This is the second partial issuance of the $16.3 million in projects approved by voters in the February 2,
2002 election. At this time, we are ready to issue Certificates of Obligation Bonds for the following
projects:
Bay Area Boulevard Paving, Drainage and Utility Installation
Canada Road Paving & Drainage, & Utility Installation
Police Headquarters Land Acquisition
Total Issuance 2004 Certificates ofObligaf
4,400,000
1,900,000
700.000
7,000,000
While preliminary work was begun on the projects some time ago, it was not desirable for us to issue
debt until this time. City Council has p viously approved resolutions that allow the City to reimburse
itself from these bond proceeds for exp nditures that were made prior to the issuance of the debt. This is
a position that we have taken on sev I other projects in the past as recommended by bond counsel and
required by federal law .
In order to issue bonds, a city i required to publish a Notice of Sale. We would like to publish the initial
Notice of Sale for Certificat of Obligation in the amount of $7,000,000 the week of October 4,2004;
and the second notice the w ek of October 11, 2004.
First Southwest Com y, the City's Financial Advisors, has prepared and made available to us a
Preliminary Official tatement which has been reviewed and approved by staff, that must also be
approved by Counc' .
Action Required bv Council: Authorize the first and second publication of Notice of Sale for
Certificates of Obligation in the amount of $7,000,000; and approve the Preliminary Official Statement.
Aooroved for City Council Ae:enda
De~~
C( -c9d -of
Date
.
e
Back up item # 7 for Council Agenda will be provided on or before Monday, September 27,2004,
.
e
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
Se:"mber 27. 2~
W yne Sabo t
.
Plannin2 Department
Appropriation
Requested By:
Source of Funds: N/A
Department:
Account Number:
Report: X Resolution:
Ordinance:
Amount Budgeted:
Exhibits:
N/A
Amount Requested:
Exhibits:
Budgeted Item: YES NO
Exhibits:
SUMMARY & RECOMMENDATION
During this meeting, Council will consider awarding a bid for a demolition contract for six (6) condemned
structures. One of these structures is located at 618 S. Iowa. The owner of the property, David Tharpe, contacted
the City in an attempt to have the structure removed from the demolition list.
The item was removed from the Consent Agenda to afford Mr. Tharpe an opportunity to address Council.
Staff recommends the structure at 618 S. Iowa remain as one of six condemned structures to be demolished.
Action Required bv Council:
Receive staff report on a request by David Tharpe with regard to the condemned structure at 618 S. Iowa.
A
?-:l!--tJ!
Date
e
e'
e
e
REQUEST FOR CITY COUNCIL AGENDA ITEM
Requested By: C nthia B. Alexander
Source of Funds:
Department: Finance
Account Number:
Report:
Resolution:
Ordinance:
Amount Budgeted:
Exhibits:
Amount Requested:
Exhibits:
Budgeted Item:
YES
NO
Exhibits:
SUMMARY & RECOMMENDATION
Receive report on Industrial Property Taxes and Valuation from Hugh Landrum & Associates, Industrial Appraisers.
Action Required bv Council:
No action required.
q -:J.::L -11 tf
Date
.....--
e
e
"
"
.-
_
. .
Back~up 'not .required,for this' item
, .
.' . . .
. . .' .' .
. ' . .
. ...
..
..' ','
e
e
,.
e
'e
A
e
e
Agenda Date Requested:
REQUE T FOR CITY COUNCIL AGENDA ITEM
r 27 2004
Aoorooriation
Requested By:
Source of Funds:
Department:
Account Number:
Report:
Resolution:
Ordinance:
Amount Budgeted:
Exhibits: Letter from Knox Askins, Dated March 4,1996
Amount Requested:
Exhibits: Community Develooment Amended Policy
Budgeted Item: YES NO
Exhibits: Minllte!l to Meeting E!ltahli!lhing Policy
Exhibits: Letter to 9515 Soencer Hie:hwav
Exhibit: Letter Request from City of Deer Park
Exhibits: Section 72-222 of Code of Ordinances
SUMMARY & RECOMMENDATION
The City has been approached by the owner of a building in Deer Park that used to receive water service from the
City (9515 Spencer Highway, original service provided by Spenwick MUD). This location had maintained
continuous service, but the last tenant closed the account when they left the building. When the owner came to the
City we enacted the policy established years ago when a number of La Porte sanitary sewer services were found in
Deer Park that were not recorded nor paying for service. Essentially, the policy states the applicant should secure
service with the City in which the property'is located.
Staff requested the owner visit Deer Park Officials. After doing so the applicant reported that there is no economical
method of servicing this building from Deer Park.
If Council wishes to consider providing services, I would suggest an intergovernmental agreement with the City of
Deer Park. Additionally, it has been our policy to charge 1 Y2 times the rate for La Porte citizens/businesses.
Action Required bv Council:
Council consideration and direction to staff regarding providing water service to this Deer Park business.
C( -J;)-()f
Date
e
e
ASKINS & ARMSTRONG. p, C.
ATTORNEYS AT LAW
702 W. FAIRMONT PARKWAY
P.O, BOX 121B
LA PORTE. TEXAS 77572-1218
KNOX W. A SKINS
~OHN ~ ARMSTRONG
CHARI.E:S R. HUBE:R. .JR.
BOARD CERT'F"EO . CIVIL TRIAL LAW
TEXAS BOARD 0" LEGAL SPECIALIZATION
TE:I.E:PHONE 713 471-1886
TEI.E:COPIE:R 713 471-2047
March 4, 1996
Mr. John Joerns
Assistant City Manager
City of La Porte
City Hall
La Porte, Texas
Re: Spenwick Place M.U.D.
Dear John:
At your request, I have reviewed a letter dated January 16, 1996,
from James E. Powell to the ,City of La Porte, ,in which letter'he
requests water service at 9505 Spencer Highway in the City of Deer
Park. I have reviewed the plat which you furnished me, and an
unsigned letter dated March 22, 1983, from Spenwick Place Municipal
utility District to Mr. Powell.
Your staff has searched the Spenwick Place M.U.D. minutes for the
relevant period of time, and finds no minute entries which would
support the unsigned letter.
As' you know, La Porte City Council has established a very firm
P9licy .against water service outside its City Limits and in the
'. City Limits of another city.
Nothing you have furnished me on this file, would indicate any
legal responsibility or duty on the part of the City of La Porte,
as the successor in interest of Spenwick Place. Municipal utility
District, following its annexation and dissolution, to furnish
water service to this City of Deer Park property owner.
I am returning to you the documents which you furnished to me.
Yours-very truly,
!~~.I
) ,(/f.,
Knox W. Askins
City Attorney
City of La Porte
KWA: sw
Enclosures
e
e
. ".' .... .
. :.....~.).~.:/i- ~.l':" ;. :...
. .....
COMMUNITY DEVELOPMENT
PROCEDURE/POLICY MANUAL
SUBJECT:
Amendment to policy regarding requests for water and
sewer service outside the City of La Porte's corporate
limits.
APPROVED:
TITLE:
.')
y Manager
Date Revised: August 30, 1990
'RESPONSIBLE AGENCY:
Director 0 Community Development Department
AUTHORIZATION:
As directed by the City Council during Council
meeting held on March 12, 1990.
SUMMARY: This policy amends.the City's current policies regarding
requests for utility. service' by an' applicant located
outside the City's corporate limits.
As directed by city Council at their March 12, 1990
meeting, the City will not consider applications for
utility service to customers located within the corporate
limits of another city. Applicants located outside La
Porte's corporate limits' should pursue obtaining utility
service from th~ City in which they reside.
Applicants 'requesting utility service, for locations
outside the City's corporate limits but wi thin the City I s
ETJ, were (sic) subject to the January 5, 1983 policies.
However, per discussions at May 25, 1990 Executive Staff
Meeting, these policies are under review. Therefore, all
requests for water and sewer service outside city limits
and within the ETJ will receive the standard letter
attached as Exhibit C.
INDEX: None
EXHIBITS,: A.
B.
tJlrr
C.
p ~
Excerpt. from minutes of City Council meeting held
March 12, 1990.
Incorporated by Reference: City Policy RE:
Requests for Potable Water and Sanitary Sewer
Service Outside the City of La Porte (Policies
adopted by La. Porte City Council on January 5,
1983.)
Standard letter for response to requests for water
and sewer within La Porte's extraterritorial
jurisdiction (ETJ) (to be in effect while January
5, 1983 policies are under review).
COMMENTS: Supersedes policy dated April 23, 1990.
-
.
Minutes, Public Hearing and Regular Meeting
La Porte City Council
March 12, 1990, Page 8
23. Council considered approving a utility extension across
Underwood Road to serve a 9. 26 acre tract of land in Deer
Park, Texas.
Motion was made bv Councilperson -Porter to approve the utility
extension across Underwood Road. Second by Councilperson
Matuszak.
~
During discussion, it was brought out that several businesses
in the location involved had tied into the existing four-inCh
sewer line without permission from the city. This has caused
an overload on the existing line. Another business wishes to
tie in to the overloaded line. A six-inch line would
alleviate the problem. Several Councilpersons felt that since.
there are citizens in La Porte who still do not have sewer
service, and since the "businesses are located in Deer Park,
the problem needs to be addressed by Deer Park.
Councilperson Matuszak withdrew his. second to the motion to
approve, and Councilp~rson Porter withdrew his motion.
Motion was made bv Councilperson McLauqhliri to deny the
utility extension across Underwood Road. Second by
Councilperson Skelton. The motion carried, 8 ayes and 0 nays.
Ayes:
Councilpersons Wate'rs, Cooper, Matuszak, McLaughlin,
Porter, Skelton, Clarke and Mayor Malone
None
Nays:
24. Council considered approving a refund payment to Alpha
Chemical, Inc., for overpayment of taxes.
Motion was made bv Councilnerson Skelton to approve the refund
to Aloha Chemical. f;iecond by Councilperson Cooper. The
motion carried, 7 ayes and 0 nays (Councilperson Porter was
away from the table).
Ayes:
Councilpersons Waters, Cooper, Matuszak, McLaughlin,
Skelton, Clarke and Mayor Malone
None
Nays:
25. Council considered approving a professional engineering
services agreement for design of a 12-inch water line on
Spencer Highway.
Motion was made by Councilperson Waters to award the
prOfessional services aqreement for desiqn of a 12-inch water
line on Spencer Highway to H. Carlos Smith. in an amount not
to exceed $26.200. Second by Councilperson Skelton. The
,.
CITY OF
.
L.L\
PORTE
P!-40NE 17131471-5020 . P.0.8ox 1115 . LAPORTE.TS:XAS 77572
.~ ..>....~.:. : ~'<:. -. . "::.: .:.~.:: '~_"':".~{
", ,". "'-:":.'
.. ..:'.
..::..:;::.
.:.,..... .,.' ...... . -'(;;"'" l'
':......_.,:.~':.....;::... ._.....-..:..:...~ ....,. ~...:' ..
.. ..".. . ....
0::;;'''' ".,,,,,,,,, ",-,C;: '- ;:""'C'"'~:;;;~':. . .~'^.J'ELE
. . ~
. .....'::,..~...=~-"
.:~':...:.::., ~. ~:l ~;..;~::;:':~~:';'.;"'~':.,,~~~~.::i.::'.:':'~:,;~ .;.. :._' .(:: r ~.::. .
June 14, 1996
Chris Yaeger
P. O. Box 102
Deer Park, Texas 77536
Re: Water Service for 9515 Spencer Highway
Dear Mr. Yaeger:
It recently came to my attention that La Porte is providing water
to an account, in your name, with a 'Deer Park service address. Our
records show that service was established for 9515 Spencer Highway
in April, 1995.
Current policy of the city does not promote utility service to
property located in other Cities. However, since this location was
previously served by. La Porte and since the Spencer ijighway
reconstruction preserved the service line without any cost to the
City, we are willing to continue service for the near term.
However, we encourage you to make arrangements to receive service
from Deer Park within a 1 to 2 .year time frame,.
Furthermore, if the service line under. Spencer Highway needs
repairs or requires adjustment, the City of La Porte will not
expend funds to maintain the service.
We hope you understand and resPect our position and again suggest
that you make arrangements to receive utility service from the City
of Deer Park.
Sincerely,
erns
tant City Manager
xc: Robert T. Herrera, City Manager
Jeff LitChfield, Finance Director I Assistant City Manager
Steve Gillett, Director of Public Works
ARTICLE III, WATER AND IWER SERVICE CHARGES*
e
Page 1 of6
ARTICLE III. WATER AND SEWER SERVICE CHARGES*
*Cross references: Finance, ~ 2-61 et seq.
DIVISION 1. GENERALLY
Sec. 74-221. Billing; separate payments.
Rates and charges for water service, sewer service and garbage service rendered by
the city shall be billed to the users or consumers on the same statement and the users or
consumers shall not be permitted to make payments for anyone or more services separately,
but charges for all services must be paid at the same time.
(Code 1970, ~ 26-17)
Sec. 74-222. Service outside city limits.
For water service, sewer service and garbage service to property located outside the
corporate limits of the city, where there is no existing contract with the city precluding the
application of the charges established by this article during the term thereof, the charges to be
made by the city for such services shall be as established by the city council from time to time,
upon recommendation by the director of finance.
(Code 1970, ~ 26-18)
Sec. 74-223. Companion rate ordinances to hereafter establish water and sewer
rates.
(a) Any charges, rates or other fees established or continued in this article are to be
set out in detail in an ordinance passed by the city council, upon recommendation of the
director of finance. Such ordinance shall be incorporated by reference into this article,
and be a part of this article for all purposes,
(b) Any subsequent change in the charges, rates or fees shall be accomplished by
amending the ordinance described in subsection (a) of this section.
(Code 1970, ~ 26-19)
Sec. 74-224. Delinquent utility bills; imposition of lien.
(a) Adoption of state law provisions. The city council hereby adopts the provisions of
V.T.C.A., Local Government Code ~ 402.0025{d)--{h), imposing a lien against an
owner's property, unless it is a homestead as protected by the state constitution, for
http://library5.municode.com/gateway .dll/tx/texas/960 1 /9725/9728?f=templates$fn=docu.,. 9/20/2004
89/22/2884 87:36
281478"
CITY MANAGER e
PAGE 81/81
RONALD V. CRABTREE
CITY MANAGER
710 E. San Augustine · P. O. Box 700' Deer Par1c, Teras 77536 '(281) .78-7245 . Fax (281) 478.7217
E.Mail: rcrabrree@deerparktx.org
september 22, 2004
--------;-:--..-;"t' ~ .
~lli (-) r~ n \')1 Ie ~".
f ~l) l~l I.. ----;;:...-.-:...., : " ,.
\ OJ'" --,.. -.
~ n\r;Z 2. (f04 \i\~)\
\JU\ . ., I
_.__...J i,
,,-'.- - I'.
....,...... ...... {...
I .' '--::-;:::;{'I'V ~~~,t:t'~Hl~v....R .
. AC"" I ,'" -. '.
L ;:;>~.. .....,~c:
': c.r-:'~
------
Mr. 101m 10ems
Assistant City Manager
City of LaPorte
604 West Fairmont Parkway
LaPort~ Texas 77571
Dear 1ohn:
The owner of the building located at 9S 15 Spencer Highway bas asked that an official request be
made to the City of LaPorte to re-establish water service at thjs location. This building is in Deer
Park but is not served by our water system.' The nearest City ofDeer' Park water line is located
several hundred feet away near the intersection of Underwood Road and Spencer Highway. At
this time; we do not have any near term plans to extend service to the area where this building is
located. It is my expeCtation that the extension of water and sewer service to the area between
UnderwOod Road and East Boulevard will occur when additional development takes place,
On behalf of this property owner, tbe City of Deer Park is requesting that the City of LaPorte re-
establish water service to the building located at 9515 Spen= Highway. We appreciate your
consideration oftbis matter.
Sincerely,
~V~
Ronald V. Crabtree
City Manager
e
e
B
e
e
PLEASE BRING DOCUMENTATION THAT WAS PROVIDED
YOU FOR THIS ITEM.
THANKS,
Mg
e e
"
. . .."
. ,
, .
. . MEETING :HAN..D,OU.TS....
, .
. ,-.
. . .
It
e
I would like to thank you for allowing me to address the council this
evenmg.
I am here on behalf of Robin Wingrove the owner of618 S. Iowa St. Who
lives in Ca.
I purchased.this property at a Harris County Tax auction .because of
delinquent property taxes in December of 2003. The city of La Porte and the
La Porte ISD as well as other entities were the Plaintiff.
The Texas property tax code classifies properties as either ones that have an
. exemption or ones that -do not have an exemption. For properties with an
exemption, the previous property owner has a period of two years in which
time they can re-claim their property. Properties that do not have an
exemption on them have a redemption period of 6 months. Ideally, after this
redemption period has expired ~e property could be titled to the person
paying the delinquent taxes. In practice the Texas court system does not
recognize the redemption period as stated in the property tax code. They
have in fact found in favor of, and awarded the property back to the original
owner well in excess of the redemption periods and without any regard to
. the improvements done on the property. Because of this there is not a title
company in the entire state that I am aware of that will issue a clear title to
property bought at a tax sale for a period of time equal to a minimum of
twice the redemption period and then only with documentation that is near
impossible to provide. After buying a total of 17 properties at the tax sale it
has been my experience that on a property without an exemption, it takes
approximately 18 to 24 months to receive a clear title on properties that do
not have e~emptions. Because of this, I no longer buy tax deed properties.
The title problems with tax deeds properties have spurred a cottage industry
of companies trying to provide clear title to properties acquired at tax sales.
These companies are expensive, typically anywhere from $2500 to $4000
and still may take 6 to 8 months or longer to provide clear title. In spite of
these costs I hired a company by the name of TAX TITLE SERVICES after
the original 6 month redemption period exprred inJuly of this year and they
have been actively working to provide me a title policy. We paid $26,000.00
for this property that went back to the city of La Porte, the La Porte ISD and
the other Plaintiffs in the case, and we are prepared to spend upwards of an
additional.$60,000 to bring this property back up to code.
\
\
,\
It
e
This property has a history not only "in" the city of La Porte but also. "with"
the City of La Porte. In October of 2002 the property was inspected and
went through the procedures to have it condemned and tom down. The
owners at that time promised to repair the property but property taxes were
already in arrears and continuing to accumulate. The property owners failed
to repair the property and continued to fail paying property taxes for another
14 months before I purchased the property and paid all back taxes and
brought the tax account up to date.
Currently the property is valued through the Harris County Appraisal
District at $64,800.00 making our property tax liability of just over $2000.00
per year.
By allowing me the time to get clear title on this property and to spend
$60,000.00 to rehab this property we will increase the value of the property
to near double it's currel)t value and then I will be paying over $4000.00 a
year in property taxes to the largest benefactor, La Porte ISD and the- second
biggest benefactor the City of La Porte as well as two other county taxing
authorities.
On the other hand, if I am not allowed the time to get clear title to this and
the existing structure is tom down, then the properties value is reduced to
HCAD's value of just over $14,000.00 which decreases my total tax burden
to less the $450.00 to be split by the four taxing authorities.
I am respectfully requesting that the ordinance which was passed
condemning this property and ordering it's demolition be rescinded. In
addition I'm asking for the ordinance which was passed asking for bids for
it's destruction to be modified in a way that this property is excluded from
that bidding process.
Thank you.
~lV.li.\.
rilgt: 1 VI 1
.
e
., \ . Houston
~v~} ..\ssodati.olt of
~ '>I'"" Rl" i\"f'r.ORS "
.........~w :':/"\...1:..;"1..' . ,"*-0
Lots
Comparative Market Analysis
Property Type: Lots Status: Sold
Subject
Property
MLS# Closed Address Subdlv. Acres land SPI Acre SPI Sale DOM LP/SP
Date Size SqFt SqFt Price %
906054547 7/11 f2003 o Bayside Bayside 0.17 7750 $44,117.65 . SO.97 $7,500 220 1.00
Terrace "
2910592 12/1512003 614 BAY BAY 0 7865 $0.00 $1.27 $10,000 279 1.00
COLONY DR COLONY
582405 4/02/2002 614 BAY BAY 0.18 7842 $55,555.56 $1.28 $10,000 332 1.00
COLONY COLONY
582425 4/0212002 3903 BAY 0.174 7560 $57,471.26 $1.32 $10,000 333 1.00
BARRACUDA COLONY
582450 1/31f2003 3818 TARPON BAY 0.144 6247 $69,444.44 $1.60 $10,000 395 1.00
COLONY
Average 0.17 7453 $58,847 $1.29 $9,500 312 1.00
Number of Properties: 5
Prepared by
Dawn Penrod
(281) 496-7400
Keller Williams Realty
dawnmaree@sbcglobal.net
Data Not Verified/Guaranteed by MLS
Obtain signed HAR Broker Notice to Buyer Form
<S EM<.. [H
AlL II 57.
'5Y KF1 Mil? PAt::E
P R-'1CE j 9 5'00 .() 0
AVe,
7)Af~
~.~
MAR.f<.E7
:s \ 2..,
http://harlistings.marketlinx.comlSearchDetail/ScriptslCmalCustomlBuyerCma.asp?prp=ln... 9/27/2004
vJ.V.I.n.
ra5'1' J. UJ. J.
" \ Houston
~,"'1~ Associaii.on of
':~"./ nEALTORS,'$.r'
e e
Single Family Property
Comparative Market Analysis
Property Type: Single Family Property status: Active
Subject
Property
MLS# A~dress Subdlv. BR Bths # Pool Lot Bldg Yr List LPI SF DOM
Gar SqFt SqFt Price
6364 3111 LAZY SHADY RIVER 2 6 310 2 N 9,750 2,801 1968 $149,500 $53.37 278
PINE LN
5174743 3306 Country SHORE ACRES 3 2/0 2 N 17,500 2,240 1989 $152,500 $68.08 24
Club Dr (ALSO SO 22)
8177464 702 S IOWA ST LA PORTE BLKS 187 4 2f2 3 N 6,250 2,216 1977 $159,000 $71 .75 5
TO 996
8500563 3103 LAZY SHADY RIVER 4 2/1 2 N 11,264 2,794 1965 $159,500 $57.09 27
PINE
8584037 1 BAY OAKS SHORE ACRES 4 3/1 2 N 7,980 2,730 1985 $179,990 $65.93 35
RD
Average 4 2 10,549 2,558 $180,098 $83.24 74
Number of Properties: 5
Prepared by
Dawn Penrod
(281) 496-7400
Keller Williams Realty
dawnmaree@Sbcglobal.net
Data Not Verified/Guaranteed by MLS
Obtain signed HAR Broker Notice to Buyer Form
http://harlistings.marketlinx.comISearchDetaiIlSaiptslCma/CustomlBuyerCma.asp?prp--re... 9/27/2004
:;. .. .. r-
~ ~
.,e
'.e
.'\
'.
City of La Porte .
. Industrial District
. .
Agreement.
2004.
HUGH L. LANDRUM & ASSOCIATES, INC.
VALUATION ENGINEERS
12000 AEROSPACE AVENUE, SUITE 106
H9uSTON, TEXAS 77034-5567
PHONE (281) 484-7000
FAX (281) 484-7272
1998
La Porte Industrial District
Values
'.
1999 2000 2001 2002
Year
Hugh L. Landrum & Associates, Inc.
2003
2004
'-
81
$9,000,000
e $8.,000,000
$,?,ooo,goo
$6,000,000
$5,000,000
$4,000,000
$3,000,000 -
$2,000,000 ,
e --
$1.000.000 '-
$- II
1997
\. ("".
o.
t.,
1998
La Porte I ndustrial District
Revenues
- -
-
1999 2000 2001 , 2002
Year
Hugh L. Landrum & Associates, Inc.
2003
2004.
-
81
Industrial Districts Alan the Texas Gulf Coast
Contract Tax Effective New
Rank City Rate Rate Tax Rate Construction Comments
-
1 Port Neches 75% 0.67900 50.93% 75% 10 Year Contract
2 Beaumont ,80% 0.63500 50.80% 75% - 80% Different contract for each company.
3 Pasadena 73% 0.68500 ,50.01 % 35%, 45%, 55%, 65% Rate increases $.05/yr from .00645 - .00~95
e 4 Nederland 75% 0.66000 49.50%, 0% New Construction on case by case basis
5 Houston 73.4% 0.65500 48.08% 40%, 45%, 50% 15 Ye~r Contract 100% on land
6 Texas City 100% 0.45624 45.62% 100% All Plants Annexed ,by City
7 Deer Park 63% 0.70000 44.10% 25% 2002 Base Value for New Construction
8 ' Corpus Christi 60% 0.64418 38.65% 6%-60% 10 Year Contract
~ '::,'~ ' Ui@ ,jE{~mL: . . '. . . .. G UjU@]ID .W~' ", ~~f"'" ~~~~r~ I ,',
~ +' ~^( ,u ~.: o~ ~';:t<< ~ ':<"'~~ "+'^ ,..,.:;t~:.t+"7 , ~ """''&, + . +< ."""
10 Bay town 50% 0.73703 36.85% , 0% for 2 years Different contract for each company.
e ,11 Orange 42% 0.84600 35.53% 0% for 3 years 7 Year contract-
.
12 Freeport 40% 0.76400 30.56% 00(0 Rate Escalates from 40% to 65% over 10 years
13 Bridge City 42% 0.59351 24.93%' 42% Add ~ales Tax Adjustment to Tax Rate
14 lake' Jackson. Clute 33% 0.54013 1-7.82% 0% Rate Escalates from 32.5% to 50% over 10 years
15 Port Arthur - 0.77500' Flat Fee - Use Flat Fee CO'ntracts
.
16 Liverpool NA 0.17580 Flat F.ee - Plants split $150,000 annually
~. .- Hugb L. Landrum & Associates, Inc.
http://www.industrialinfo.com/printNews.j sp?newsitemID=49573
,.
e
F,
~ 'i.
~ PRINT ARTICLE NOVV 1&1 CLOSE VIJINDOVV
IIR Industry Alert:
'Chemical Plant Closures Drop Sharply in ~004, Another Sign of Str~ngth in the Industry
HOUSTON--September 20, 2004-,.Researched by Industrialinfo.com (Industrial Information Resources,'.
Incorporated; Houston, Texas). The number of chemical plant closures in 2004, as of August, compare~ to last
year has decreased by over 38%, with only 46 plant closings in the Chemical Processing Industry (CPI) across
North America. At this. same time last year, 74 plant closures had been reported and 106 were eventually
reported for the entire year, impacting aD. estimated 7,800 workers. Even though 2093's number exceeded three
digits, the total number of closed,CPI plants' last year fell sharply in comparison to 2002, as well, down almost
18%, from 129 closures. This marks the second year in a row qf CPI plant closure decline~ The continuing trend
of decreasing plant closures is helping to restore confidence that the industry as a whole is improving.
Most major segments of the CPI, such as olefins, plastics, resins, and industrial gases are performing stronger in
2004 than in 2003, and the outlook for 2005 is positive, in spite of the knowledge that energy co'sts are unlikely
to improve. Looking to 2005, Industriali~o.com is currently tracking only seventeen plarined closures of CPI
plants, representing an estimated 1,250 workers. Many of these plants are antiquated operations, with startup
dates ranging as far back 1:15 ,1912 and most in the mid 1950-60's. These few closures are spread out over fifteen
different states, including Canada. The Eastern of portion of the United States is home to over half of these
closures.
Historically, CPI plant closures began to increase in 1998. This time was the beginning ofa long cycle of major
mergers and acquisitions. Plant closures peaked in"2001, ~s the economy struggled with very poor performance,
combined with Middle Eastern concerns, unstable energy pricing, and many other factors.
CPI Plant Closures by Year Since 2000
I'
. 2000 - 94 Plants
. 2001. - 170 Plants
. 2002 - 129 'Plants
. 2003 - 106 Plants
. This year's total number of plant closures will remain below half of last year's results, with only five planned
closures during the remaining portion of the year that have been identified so far. Significant improvements this
year in the.general economy and a positive forecast for industriat spending trends in 2005 will co~tinue to.
support this trend and present oppo~ities to upgrade, retrofit, or modernize existing plants that would
otherwise be closed or mothballed. .
IndustrialiIifo.com is the leading provider of global industrial market research. We speCialize in helping
companies develop information solutions .to maximize their sales and marketing efforts. For more information'
sen~ inquirie~ to chemicalsgroup@industrialinfo.com or visit us at www.industri~linfo.com. .'
-
@ 2004 ALL RIGtlTS RESERVED. Industrial Information Resources, Inc.
9/20/2004 12:'03:01 PM
1 of I
7"
.~ .'
, r
... ~:J/V).ft i (!~
CITY OF LA PORT~ IV , I L; (J. Jl
,",">:'; :,:!,:-, .,IN J>E:R:"GlF FJ'i,Oi"E::M"E'M:'O, ~'A':~:.7b,'-~,':~,' :, ,::~,~>',;.-:,;:::~~::::,"" :
~"i"'~~':'~:'~".~~.:..\,....:'.-:. .........~:. .':.,~ .' . .~ . ". .....4... ~:;::-.:.;':-:t~.~ ,:~.~~~.'"..:.1.:~.:
Septem.ber 27, 2004
TO:
Debra Feazelle, City Managei'
FROM:
Sherri Sampson
SUBJ:
Insurance Questions
Please accep~ this memo as a formal response to the questions posed in the
September 24,2004, Memorandum from Councilmember District 4 Tommy Moser.
Question 1: Provide a phase in or plan to charge more for new employees:
Option I-We have 33 employees in their first year with the City. By charging all
new'hires 20% more for health contributions the Plan may bring in an additional
$3,500 in a 12 month period.
Option II - Humana's plan for charging contribution based on tenure uses the 5
year mark as the divider. With this recommendation employees with 5 years or
more tenure pay 10% less than employees with less than 5 years tenure.
Schedules are attached for review.
auesti~n_.~.:)ndicate how many ti~E!f; ~~ring, th~ last t~r~e (;3) years .we b~d.,ml,lltiple
stop loss cases.
Over the last three years we have had 2 years (2002 and 2003) with more than
1 stop loss claim. In 2001, we had 1 stop loss claim reimbursing the City for
$310,524. In 2004 we have not yet had a stop loss claim. We do, however;
have one member to date with expenses at $83,268. Stop Loss will pay after
the first $115,000 of expenses.
. .
Question 3: What number of total employee' population did not file a claim?
We have 56 employees out of 395 that have not yet filed a claim this calendar
year. We also have 4 retirees out of 47 that have not filed a claim.
'. '\
Question 4: Over t"past 1 0 years, how many retiree~istoriCallY dropped plan
coverage compared to how many retirees stay on the plan?
It appears that about 10% (4 out of 40) of the retirees have. dropped or denied
the retiree health coverage since 1996. Information not available prior to this
date.
,Question 5: How many retirees are over the age of 60?
We currently have 26 retirees over the age of 60.
I hope this written format works better for Council than the previous spreadsheets and
binders. I am afraid that I have been providing information in an ineffective format up
to this point.
Through the budget workshop process I tried to provide spreadsheets with backup
calculations and data. The binder was a second attempt at providing the information
requested. I think again I failed to give the information in the format you were seeking.
Your feedback is welcome. I will make every attempt to be more concise with my
responses.
Please let me know if I may be of further assistance. I look forward to working more
closely with Council in the future.
;7
e
e
CITY OF LA PORTE
dF~'tCE' 6~':26ti,kcIi~EdB~R ]jISTRICT 4 .
..' ,~/:,\;:<'::,'.,<',: ';:\~r.QM~Y)r10~~R>" _,~,>: ::,:,~'.::' '.< '.'~,',
';/ :fINTEROFF1CE.M.EMORANDUM":. ::'".::~'. ' "
.:.....: ~':~,~~",':.:~~: .~;~::..~~~~.,:;. .~'_:'.'~ :...~:~..~. ~:. ....: I ~'. ...".. _ .
September 24, 2004
TO:
Debra B. Feazelle, City Manager L~~
Councilmember District 4 Tommy Moser -1\ t u
Insurance Questions
'FROM:
SUBJECT:
Thank you for the recent binder I received in an effort to answer the outstanding insurance
questions. The binder contains the same information as we previously received and is very broad
in 'scope. Could you please answer the following questions in lay terms:
. Provide a phase in or plan to charge more for new employees '
. Indicate how many times during the last three (3) years did we have multiple stop loss
cases
. What number of total employee population did not file a claim
. Over the past 10 years, how many retirees historically dropped plan coverage compared to
how many retirees stay on the plan
. How many retirees are over the age of 60
As this matter is time sensitive, a sirriple explanation would expedite the finalization of this matter.
c: Mayor and City Council
John Joerns
Cynthia Alexander
Sherri Sampson
\ ~ 'j;) ';x
\r~
~C\\,,7 ~
e
I~
e
I
.'
.,
(+20%)
Current
Employee
Contributi
on
Change
$17.58
$22.47
$27.61
$32.15
e,
$27.24
$52.40
$57.41
$74.05
$0.00
$104.00
$86.67
$112.67
$27.24
$156.40
$144.08
$186.72
$416.66
$416.66
$416.66
$416.66
$464.64
$597.62
$544.99
$650.26
$60.27
$102.11
$64.59
$148.28
$0.00
$104.00
$86.67
$112.67
$60.27
$206.11
$151.26
$260.95
$416.66
$416.66
$416.66
$416.66
$484.19
$6~2.77
$567.92
$677.61
e
$j 11.25
$158.34
$115.87
$209.46
$0.00
$104.00
$86.67
$112.61
$111.25
$262.34
$202.54
$322.13
$416.66
$416.66
$416.66
$416.66
$527.91
$679.00
$619.20
$738.79
$2,332
$27,979
12 mos service
than
Employee
Contributi
ons
$0.00
$104.00
$86.67
$112.67
$17.58
$126.47
$114.28
$144.82
$416.66
$416.66
$416.66
$416.66
$430.67
$553.94
$505.15
$602.72
$2,340
$28,081
New Employees with less
Employer
Contributi
on
Total
Premium
$4,672
$164,9971i:fA~5Jifi.R~
$13,750
$18,678
$224,133
Subs
~j:
2
2
1
,~;,
2
2
3
r;';~:.~:'
fit~~;~;l~i
'.. 3
2
3
~";';.'~'''1'':'
. "I.' ".~:
;';,i!':.:.:
1
1
1
33
Option
;'~~".
Employees with less
than 1 year of service.
Coverage 1st - $1;500 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
Coverage 1 st - $1,000 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
$500 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
PPO
$300 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
PPO
Total Monthly Funding
Total Annual Funding
City of La Porte
Premium and Contri
bution Projection
Effective January 1 2005
Proposed Premiums and Contributions
- .
- 'Current
Employee
Contribution
Emplc;>yee
Contri/:)_utjon~
Employer
Contribution
Total
Premium
Per Check
$6.76
$48.46
$43.96
$55.70
e
$10.48
$60.16
$55.42
$71.82
$22.70
$26.34
$33.40
$42.93
$0.00
$104.00
$86.67
$112.67
$22~ 70
$130:34
$120';07
'c$-1'55.60
$23.18
$76.50
$71.61
$85.53
$50.23
$61.74
$68.48
$72.65
$0.00
$104.00
$86.67
$112.67
'$50~23
$165.74
$155~ 15
$'185.32
17
17
17
17
$429.
$429.
$429.
$429.
$508.39
$653.91
$596.31
$711.49
e
$36.53
$104.21
$99.69
$110.57
$79.14
$121.79
$129.32
$126.89
$0.00
$104.00
$86.67
$112.67
.,
. $79:,14
:.$~25i79
'~$215~99
$239.56<
$429.17
$429.17
$429.17
$429.17
$554.31
$712.95
$650.16
$775.73
$19,318
,811
$231
Change
$14.65
$1.00
$8.57
$8.02
.
$429.17
$429.17
$429.17
$429.17
$487.88
$627.51
$572.24
$682.77
$21,312
$255,742
$0.00
$104.00
$86.67
$112.67
.'$1'4.65
$105,09
,$95';24
$12CL69
$429.17
$429.17
$429.17
$429.17
$452.20
$581.64
$530.40
$632.86
~40,-62",a
,$4'~7:5!?3
.~
an
The Welch Com
$140,338
$1,684,051
7T%
$199,047
$2,388,559
100%
Subs
22
7
7
21
Employees with more than 12
months service
Coverage 1$t - $1,500 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
Schedule E Option
f?0
5
5
14
Coverage 1$t - $1,000 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
21
20
20
47
PPO - $500 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
-31
13
13
31
PPO - $300 Deductible
Employee Only
Employee & Spouse
Employee and Children
Employee and Family
327
Total Monthly Funding
Total Annual Funding
Employee/Employer %
,e e
I. . II
- :;.,....;-;. .
CURRENT 8Y08 EE's with less than 5 yrs of service
Premium Premium
Tier SUBS Equivalen~ , ER Contrib E~ Contrib SUBS . Equival~~ts ." ,ER Co~t~ib EE Contrib
:-'~~,,'f1M,(;I.f.~""" ::, ;:,.( ...,~~;,' ,~1i:..",-"l: ~,: ~,.:~.:::;".. -f ".,., Covefage~Fjr$~,1'OOQ-,."::-'"~;' " ..
_11' E;;';~~e I: 0 $0.00 $0.00 $0.00 3 $495.64 $470,67
"I Employee! I r
I. Soouse t 0 $0.00 $0,00 $0.00 3 $637.51 $494.14
~EmPIOyee! 11'"
Childl~nl ,,0 $0.00 $0.00 $0.00 9 $581.37
. I Family II' 0 $0.00 $0.00 $0,00 4 $693.65
, . :.PPO,." , . '.' .. ': ,- , ,CoverageF,irst 1500' "T
Ii Employee ~ 0 $0,00 $0.00 $O,OO! 0 $459.21
. .1 Employee! II
SDouse .' 0 $0.00 $0,00 $0.00 1 $590.65
I Employee! I'
. ~ "',.,." , I 0 $0.00 $0.00 $0.00 2 $538.64
,.' F~~i~ l!. 0 '. $0,00 _ $0.00. $O,O~ _; 3 $642.66. ..
. PPO 300
~Em~oyeell' 0
, I i Employee! I' 0
l~. 0
[FamilY I 0
,(E-;;'~~ I
: I Employee! I'
, Soouse ,
, I Employee! I '
Childlrenl, 0
. J Family I' 0
e
e
City of LaPorte
Effective Date: 01/01/05
A and B Products
Plan
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
35
$569.35
$732.31
$667.82
$796.80
2
$0,00
$0.00
$0.00
2
$0.00
27
PPO 500
o
$0.00
$0.00
$0.00
$0,00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
17
$522.05
$671.47
o
5
3
$612.34
6
$730.60
..
;. .. .,
.. .. ...
$449,29
$522.49
$443.09
$475.15
$433.88
$509,90
$482.30
$483.94
$430,23
$533.28
$466,80
$489.16
$441.67
$526.75
o Humana must be involved in selting employee contribution levels with these benefit packages, These rates are valid
only in conjunction with the indicated contribution strategy or an altemative that is acceptable to Humana,
o This proposal assumes that no other plans/carriers will be offered.
Continue to next page
... ,.; . .. : ":,,' ~~-
$24.97
$143.37
$132.08
$171.16
$16.12
$115.50
$104.76
$132.76
$87.05
$248.37
$237.59
$263.52
$55.25
$182.31
$170.67
$203,85
.
. .
,
e
e
City of LaPorte
Effective Date: 01/01/05
(10% Less)
A and B Product
Plan CURRENT BYOB EE's with greater than 5 yrs of service
Premium Premium
Tier SUBS Equivalents ER Contrib EE Contrib SUBS Equivalents ER Contrib EE Contrib
,:. ",f.lMOi"',' ,'.~:..: "':~;J::" ,""~,;::,,:~~:::r:~\,,;;;''', '~;::':"~::)"'-:' .~ .' ~.:~'. .~.,,: ~.<: : : ,.:. . " C~ye,.age"Fitst.1~bOO:'.' ," . . .:.:~
, .. ' , '.
J I ;",,.;;,..; rr , $472.94 $22.70
0 $0,00 $0.00 $0,00 21 $495.64
~-I 0 $0.00 $0.00 $0,00 17 $637.51 $507.17 $130.34
' SDouse .
, Employee!
I Child/renl It 0 $0.00 $0.00 $0.00 10 $581.37 $461,30 $120.07
'I Famny Ii, 0 $0.00 $0,00 $0.00 6 $693.65 $538,05 $155,60
.... . : .....~.- ...-... .' CO,v~raaeFirst1 ~OO
,PPO " , ' .' .. - ~. . "
'I ~m~I~~ ~' -' . . - '.
0 $0.00 $0,00 $0.00 0 $459.21 $444.56 $14.65
I Employee! II, 0 $0.00 $0,00 $0.00 2 $590.65 $485.65 $105.00
.I~~J 0 $0,00 $0.00 $0.00 11 $538,64 $443.40 $95,24
,~/renl
: I Famny I 0 $0,00 $0.00 $0.00 4 $642.66 $521.97 $120.69
,=== , , -... .' PPO 300 '"
" ,-
~ ;",,.;;,..; U~ 0 $0.00 $0,00 $0,00 48 $569.35 $490,21 79.14
. I Employee! I.: 0 $0.00 $0,00 $0.00 14 $732,31 $506.52 $225.79
. Soouse '
-I Employee! I 0 $0.00 $0.00 $0.00 8 $667,82 $451.83 $215.99
: thildlrenl '
I F;;ily I,; 0 $0.00 $0,00 $0.00 45 $796.80 $557.24 $239.56 :
'1" . .' '., P~0500' ,
' '
fI=T .- .. .....; . .. . ,
0 $0,00 $0.00 $0.00 2 $522.05 $471.82 $50.23
0 $0,00 $0.00 $0.00 ,I 8 $671.47 $505.73 $165.74
Soouse
I Employee! ,. 0 $0,00 $0,00 $0.00 8 $612.34 $457,19 $155.15
~'
I Family I', ,
0 $0.00 $0,00 $0.00 34 $730.60 $545,28 $185,32
,~, .. ... .. ,-. .... ~... ,. , - I.... .. '.. ",
r-::-
.. ~. ......
o Humana must be involved in setting employee contribution levels with these benefit packages, These rates are valid
only In conjunction with the indicated contribution strategy or an altemative that is acceptable to Humana,
o This proposal assumes that no other plans/carriers will be offered.