HomeMy WebLinkAbout2010-7-12
MINUTES OF REGULAR MEETING AND WORKSHOP MEETING
OF THE LA PORTE CITY COUNCIL
July 12, 2010
1. Call to order
The meeting was called to order by Mayor Pro-Tem Daryl Leonard at p.m.
6:00
Members of City Council Present: Councilmembers Louis Rigby, Tommy Moser, John
Zemanek, Mike Clausen, Mike Mosteit, Chuck Engelken and Mayor Pro-Tem Daryl
Leonard
Members of Council Absent: John Black
Members of City Executive Staff and City Employees Present:
City Manager's Office: Ron Bottoms, John Joerns, Melisa Boaze and Stacey Osborne
Legal: Clark Askins
City Secretary's Office: Martha Gillett
Planning: Tim Tietjens, Masood Malik, Debbie Wilmore, Regan McPhail and Brian Sterling
Police Department: Chief Ken Adcox and Chris Page
Parks and Recreation: Stephen Barr
Public Works: Steve Gillett
Finance: Michael Dolby
Fire Department: Mike Boaze and Donald Ladd
EOC: Jeff Suggs and Kristin Gauthier
Human Resources: Heather Weger
Others Present: Dottie Kaminski, Richard Warren, Adam Yanelli of Bayshore Sun, Mr. and
Mrs. Rosa, Jay Martin, Gayle Martin, Norma Elliot, Anita Willis, George Francis, Ken Martin
and Ted Powell
Ch,/t.
2. The Invocation was given by Assistant City Attorney ~ Askins.
3. Councilman John Zemanek led the Pledge of Allegiance.
4. Presentations/Proclamations
TML Representative Scott Wilson provided a presentation on the functions of the Chapter
172 Employee Retiree Insurance and Benefits Board.
5. Consent agenda - Any item may be removed by a Councilperson for discussion.
A. Consider approval or other action of minutes of Regular Meeting and Workshop
Meeting held on June 28, 2010 - M. Gillett
Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on July 12, 2010
2
B. Consider approval or other action regarding a resolution accepting the revised
Harris County All Hazard Mitigation Plan for the City of La Porte - (Res. 2010-14)
- J. Suggs
C. Consider approval or other action establishing funding in the General CIP Fund
015 for construction and contingency costs associated with the 2009 American
Recovery and Reinvestment Act's Energy and Conservation Block Grant award -
T. Tietjens
D. Consider approval or other action regarding an ordinance authorizing a
Development Agreement by and between the La Porte Reinvestment Zone No.1,
La Porte Redevelopment Authority, the La Porte Development Corporation and
Harris County, Texas, providing for reimbursement of advance funding for the
Sylvan Beach Shoreline Protection & Beach Nourishment Project - (Ord. 3261) -
J. Joerns
E. Consider approval or other action authorizing the purchase of a rescue boat, trailer
and accessories for the City of La Porte Fire Department not to exceed $20,
000.00 - D. Ladd
Assistant City Attorney Clark Askins read the following resolution and ordinance captions:
Resolution 2010-14 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
PORTE, TEXAS ADOPTING THE HARRIS COUNTY ALL HAZARD MITIGATION PLAN
Ordinance 3261 - AN ORDINANCE APPROVING AND AUTHORIZING SYLVAN BEACH
DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF LA PORTE
REINVESTMENT ZONE NO.1; CITY OF LA PORTE REDEVELOPMENT AUTHORITY;
HARRIS COUNTY, TEXAS; LA PORTE DEVELOPMENT CORPORATION; AND THE
CITY OF LA PORTE, TEXAS MAKING VARIOUS FINDINGS AND PROVISIONS
RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS
LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF
Item D was pulled for discussion.
Motion was made by Council member Enaelken to approve the consent aqenda as
presented. Second by Councilmember Clausen. Motion carried unanimously.
Ayes: Engelken, Rigby, Moser, Clausen, Zemanek, Mosteit and Mayor Pro-Tem Leonard
Nays: None
Abstain: None
Absent: Black
6. Petitions, Remonstrance's, Communications, Citizens and Tax Payers wishing to address
Council on any item posted on the agenda (Limited to five minutes)
Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on July 12, 2010
3
Chuck Rosa - suggested the Yellow Rose of Texas be considered as the statue for the
Five Points Plaza area and provided a historical overview of the Yellow Rose of Texas.
Anita Willis - 1009 Forest Ave. - had questions regarding the piers within La Porte. She
questioned why the health hazards signs were not replaced after Hurricane IKE regarding
the bio hazards in the water.
7. Consider approval or other action authorizing a contract for professional services with Belt
Harris Pechacek, and authorizing an additional $5,000.00 for service fees, as
recommended by the Fiscal Affairs Committee, to conduct Agreed Upon Procedures for
review of the Town Plaza Project - Chairman Engelken
Motion was made by Councilmember Enqelken to approve a contract for professional
services with Belt Harris Pechacek. and authorizinq an additional $5,000.00 for service
fees. as recommended by the Fiscal Affairs Committee, to conduct Aqreed Upon
Procedures for review of the Town Plaza Proiect. Second by Councilmember Moser.
Motion carried unanimously.
Ayes: Engelken, Rigby, Moser, Clausen, Zemanek, Mosteit and Mayor Pro-Tern Leonard
Nays: None
Abstain: None
Absent: Black
8. Close Regular Meeting and Open Workshop Meeting
The Regular Meeting was closed and the Workshop Meeting was opened at 6:32 p.m.
A. Texas Enterprise Zone Presentation - S. Osborne
Economic DevelopmenUMain Street Coordinator Stacey Osborne provided a
presentation of a Texas Enterprise Zone Project requested by DuPont.
Council directed staff to move forward.
9. Close Workshop Meeting and Open Regular Meeting
Mayor Pro-Tern Leonard closed Workshop Meeting and reconvened Regular Meeting at
6:49 p.m.
10. Receive Report from Fiscal Affairs Committee - Chairman Engelken
Chairman Engelken provided a report from the Fiscal Affairs Committee.
11. Receive Report from Drainage and Flooding Committee - Chairman Mosteit
Chairman Mosteit provided a report from the Drainage and Flooding Committee.
Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on July 12, 2010
4
12. Receive Drainage Report from City Staff - S. Gillett
Director of Public Works Steve Gillett provided the monthly Drainage Report.
13. City Manager Ron Bottoms provided Administrative Reports for the following:
July 15, 2010 - City Employee Golf Tournament - 6:00 p.m. - Bay Forest Golf Course
July 16, 2010 - Plaza by the Bay Summer Concert 6:00 p.m. - 9:00 p.m. (Gerald Hilburger
Orchestra)
July 26,2010 - City Council Meeting
July 23-24,2010 - Newly Elected City Official's Orientation - TML -Irving, Texas
August 6, 2010 - Plaza by the Bay Summer Concert 6:00 p.m. - 9:00 p.m. (John Garr &
the Hopeful Souls)
August 9 - 13,2010 - City Council Meeting/Budget Workshop Meetings
Early Voting for Special Called Elections - August 11,2010 - August 24,2010 - 8:00 a.m.
- 5:00 p.m. extended hours for Early Voting will be Wednesday, August 18, 2010 - 7:00
a.m. - 7:00 p.m. and Tuesday, August 24,2010 - 7:00 a.m. - 7:00 p.m. Early Voting on
Saturday, August 21, 2010 - 8:00 a.m. - 5:00 p.m.
August 13-14, 2010 - Newly Elected City Official's Orientation - TML - Austin, Texas
August 20, 2010 - Plaza by the Bay Summer Concert 6:00 p.m. - 9:00 p.m. (George
Ducas)
August 23,2010 - City Council Meeting
August 28,2010 - Election Day
Mr. Bottoms also informed Council that there were changes in the schedule for summer
Concerts at the Town Plaza.
14. Council Comments: Mosteit, Rigby and Clausen provided comments.
A. Matters appearing on agenda
B. Recognition of community members, city employees, and upcoming events
C. Inquiry of staff regarding specific factual information or existing policy
15. Executive Session - pursuant to provision of the Open Meeting Law, Chapter 551, Texas
Government Code, Sections 551.071 through 551.076, 551.087 (consultation with
Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on July 12, 2010
5
attorney, deliberation regarding real property, deliberation regarding prospective gift 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)
16. Considerations and possible action on items considered in executive session.
There was no Executive Session held.
17. Adjournment
Being no further business, the meeting was duly adjourned at 7:03 p.m.
Respectfully submitted,
LfrL~$/
City Secretary
Passed and app~ this 26" day of July 2010.
M~Da~=A4"
B
-........
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: July 12.2010
Budl!et
Requested By: Jeff Suggs
Source of Funds:
Department: OEM
Account Number:
Report:
Resolution: X Ordinance:
Amount Budgeted:
Exhibits: Resolution
Amount Requested:
Exhibits: Resolution 2005-08
Budgeted Item: YES NO
Exhibits: Resolution 2003-17
SUMMARY & RECOMMENDATION
The Disaster Mitigation Act of 2000 requires local jurisdictions to have a FEMA-
approved Hazard Mitigation Action Plan in place to be eligible for federal mitigation
funding. The overall purpose of the plan is to identify potential hazards in local
jurisdictions and develop corresponding mitigation actions for each risk. On June 9,
2003, City Council approved Resolution No. 2003-17, which allowed the City to
participate in the development of a multi-jurisdictional Hazard Mitigation Plan with Harris
County. On May 23,2005, City Council approved Resolution No. 2005-08, adopting the
Harris County All Hazard Mitigation Plan.
Federal law (44 Code of Federal Regulations (CFR) Part 201) requires local
jurisdictions to review and revise the plan, and resubmit it for approval within five (5)
years in order to continue to be eligible for mitigation project grant funding. Harris
County, along with each participating jurisdiction, recently completed a formal
evaluation and update of the Hazard Mitigation Plan that was originally adopted in 2005.
Once revised, the plan went through two stages of formal review by the State of Texas
and FEMA. The plan was approved at both levels. The revised plan must be formally
adopted by each participating jurisdiction in order to be considered a valid document.
The revised version of the Harris County All Hazard Mitigation Plan (1,605 pages) can
be accessed using the following link:
Download Link:
http://www.4shared.com/document/QuEbvFTW/HarrisCountyAIIHazardMitiq.html
Password: update2010
Action Reauired bv Council:
Consider approval of Resolution accepting the revised Harris County All Hazard
Mi . ion Plan for the City of La Porte.
111/t1)
Date
RESOLUTION NO. ~ i
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS, ADOPTING THE HARRIS COUNTY ALL HAZARD MITIGATION
PLAN.
WHEREAS, certain areas of the City of La Porte are subject to periodic flooding, hurricanes and other
natural hazards with the potential to cause damages to people properties within the area; and
WHEREAS, the City of La Porte desires to prepare and mitigate for such circumstances; and
WHEREAS, under the Disaster Mitigation Act of 2000, the United States Federal Emergency
Management Agency (FEMA) requires that local jurisdictions have in place a FEMA-approved Hazard
Mitigation Action Plan as a condition of receipt of certain future Federal mitigation funding after May 1,
2005; and
WHEREAS, Harris County and certain municipalities, in order to meet this requirement, have initiated
development of a countywide, multi-jurisdictional All Hazard Mitigation Plan, including the City of La
Porte;
THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS HERBY:
Adopts the Harris County All Hazard Mitigation Plan; and
Vests the Office of Emergency Management with the responsibility, authority, and the means to:
(a) Inform all concerned parties of this action.
(b) Develop an addendum to this Hazard Mitigation Plan if the town's unique situation warrants
such an addendum.
Appoints the Office of Emergency Management to assure that the Hazard Mitigation Plan be reviewed at
least annually and that any needed adjustment to the City of La Porte addendum to the Hazard Mitigation
Plan be developed and presented to the City Council for consideration.
Agrees to take such other official action as may be reasonably necessary to carry out the objectives of the
Hazard Mitigation Plan.
PASSED, APPROVED, AND ADOPTED on
'7-IP -/0
ATTEST:
~~~
Martha Gillett, City Se retary
RESOLUTION NO. ';AVO:?;- (7
A JOINT RESOLUTION OF THE COMMISSIONERS COURT OF HARRIS COUNTY,
TEXAS, AND THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS,
PROVIDING FOR THE ADOPTION OF AN INTERJURISDICTIONAL
COMPREHENSIVE ALL HAZARD MITIGATION PLAN
WHEREAS, the City of La Porte, pursuant to Resolution No. Jna j' If) , and Harris County,
pursuant to that certain Order of the Commissioners court dated , 2003, have established
similar programs of a Comprehensive Hazard Mitigation which include plans for the mitigation,
preparedness, responses, and recovery phases of emergency management; and
WHEREAS, the City and County find that vulnerability to many potential hazards is shared by
the residents of the City of La Porte and the unincorporated portions of Harris county; and
WHEREAS, the City and the County further find that the common goal of developing an
Interjurisdictional Comprehensive All Hazard Mitigation Plan can best be achieved through an
organization which shares the combined resources of the City and the County; and
WHEREAS, the action contemplated by this Resolution is specifically authorized by the
aforementioned Ordinance and Court Order; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, AND THE
COMMISSIONER'S COURT OF HARRIS COUNTY, TEXAS:
Section 1. The Harris County Emergency Management Organization shall consist of the
officers and employees of the City and of the County as designated in an interjurisdictional emergency
management plan, together with such organized volunteer groups as that plan may specify.
Section 2. The Judge of Harris County and the Mayor of the City of La Porte shall agree on
the appointment of an project team to coordinate all aspects of the Harris County Comprehensive All
Hazard Mitigation Plan, including the review of the hazards and vulnerabilities for the City of La Porte
and Harris County in accordance with this Joint Resolution. .
Section 3. The Judge of Harris County and the Mayor ofthe City of La Porte shall agree on
the appointment of an project team to coordinate all aspects of the Harris County Comprehensive All
Hazard Mitigation Plan, including the development of a mitigation strategy for the City of La Porte
and Harris County in accordance with this Joint Resolution.
ayof @A/J~
,2003.
Judge, Harris County
'f!l!lST:
, . dtl/JdJ It/M
City Secretary
County Clerk
c
REQUEST FOR CITY COUNCIL AGENDA ITEM
Annronriation
Agenda Date Requested: Julv 12.2010
Source of Funds: Fund 015
Requested By: Tim Tietiens
Account Number:
Department: Plannini!
Amount Budgeted:
Report: X Resolution: _Ordinance:_
Amount Requested: $100.385
Exhibits:
Budgeted Item: _YES ---X-NO
Statement of work and budget
SUMMARY & RECOMMENDATION
In October 2009, Council approved a Resolution to participate in the 2009, American Recovery
and Reinvestment Act's Energy and Conservation Block Grant Program. With the assistance of
CleaResult, an environmental services consultant, Staff identified several City buildings that
meet the grant's minimum requirements. The grant funds will be used for retrofitting existing
light fixtures or replacement of same, and for replacement ofHV AC thermostats and AlC units
(see exhibit for more details).
The City has been approved to receive $86,365 in reimbursement grant funds. The overall
project will cost $95,605 to complete, exceeding the grant award by $9,240. In addition, a 5%
construction contingency in the amount of $4,780 is requested to allow for unforeseen conditions
that may be encountered. The total budget requested for this project is $100,385.
Action Required bv Council:
stab ish funding in the amount of$100,385 in the General CIP Fund 015 for construction and
conti gency costs associated with the 2009 American Recovery and Reinvestment Act's Energy and
Cons rvation Block Grant award.
Council A enda
Ron Bottoms, City Manager
1/7/to
Date
ATTACHMENT G
Statement of Work and Budget
City of L.a Porte - Energy Efficiency and Conservatlon Block Grant Program
Type of Project & Description: Activity Category: (1) Building Energy Audits & Retrofits
This project consIsts of lighting rerront/replacement, HVAC replacement and HVAC thermostat replacement for multiple City
facilities.
ADDrovod Budaet Per Cost Cateaorv and Pavment:
'l;~t}m,,~t~0:i~{t:tJf~~i0;1:n~;:S2~T~9~fgQP~r);;~~;f!:;;:;;;t,~~:~:::;'~:;'?t::;:':::i::':'),':>i;Y '5'~ti~?~:~HZ'\::~';':\';?\:;~H,9~~f:' :~:::::~~~;f;;,tC:.?':';;:~:'~:';
Audit $0.00
Consultant $0.00
Travel $0.00
Subcontractor $95,605.00
Project equIpment $0.00
Other Olrect Operatfng Expense $0.00
Tota! Budget $86,366.00
$9,240.00
Funds Leveraged
Total payments to ARRA.reciplent under thIs Agreement shall not exceed $86.365.00 in accordance WIth the Agreement.
Taske to be performed In completing the project: The ARRA-reclplent shall complete all of the Tasks as set forth below and
the ARRA-reclplent shall prOvide Information regardIng such task. (Task Ihat Includes purchasIng equIpment must Inolude: how
many, size, mode!, rallng, etc. Ple8.selnclude tile date you antlclpate each task wIll be completed. 'rhe (01'18 will expand 8$ you
(J add lines as naC9ssa
)gi;.i~il)~;\~:=;1~1l;J~}f~:f:;;:!.~1~~i:f~1:j;:jtI!;f\;jN;li~~1t~"~;::!;:~I:J.ilir~i';\i'~;>:~'::::"":<::":' \:':':':< ~... ..:::::.::::'.': .:: ':::>"
City Hall-604 West Falrmont ParkWay -ReplaC$/retroflt 24 light fixtures wllh energy efficient
I hts.
City Half.604 West Falrmont Parkway -Install 5 programmable HVAC thermostats to replace old
ones.
Fire Statton #1-124 S. 2 Street- Replace exlsUng 10 ton HVAC unltwllh new 10 tan energy
efficient uolt with EER ratln of 10.6.
RecreaUon Fitness Center-1322 S. Broadway - Replace High Bay metal halide tlxtures wllh T5
fluorescents. Re laea T12 lam fixtures with T81am fixtures.
JennIe RIley Civic Cenler-322 N. 4 Street - Replace 60 T121amp lighting fIXtures With T12
lamp fixtures, replace 8 exit lights with lED and replace exterior lights with energy efficient Viall
mounted fixtures.
Jennie Riley Civic Center-322 N. 4 Streat- Replace 5 ton AlC unit with 6 ton energy efflclent
unIt with EER ralln of 13.
Public Works-2963 N. 23rd Street - Replace 220 T121amp, magnetlo ballast light fixtures with
Talamp. electronic ballasts fixtures. Replace 94 metal halide
fixtures with high output T5 light fixtures. Retrofit 27 8', T12 fixtures with neVi T8 lamps and
ballasts.
Special FI/ness Center-1302 S. Broadway - Replacelretrofit 67 T12 lamp fixtures and metal
halide fixtures with T8/am and T5 lam fixtures.
. -' . .' ',', '.,',', ,', '.' ", .... ' ~ ',',',. .' ,,",".
, '::::':::::<T!:~'~i!~~':...:::\:n!
July 201Q-January
2011
July 201Q-January
2011
Jury 2010-January
2011
July 2010-January
2011
July 2010-January
2011
July 2010-January
2011
July 2010-January
2011
July 2010-January
2011
Please note bul/dlngs over44 years of age wIll requIre revIew and release by the Texas HIstorIcal CommissIon prIor to
engaging In an activity.
D
REQUEST FOR CITY COUNCIL AGENDA ITEM
~enda Date Requested: Julv112. 2010
Aoorooriation
Requested By: John Joerns, Asst. City Manager
Source of Funds:
Department: Administration
Account Number:
Report:
Resolution:
Ordinance:
x
Amount Budgeted:
Exhibits:
Ordinance
Amount Requested:
Exhibits:
AlZreement
Budgeted Item: Yes
No
Exhibits:
SUMMARY & RECOMMENDATION
The Sylvan Beach Erosion Protection Re-nourishment Project was initially funded by the State at 60% of the base costs
and the La Porte Development Corporation (est. $700,000+/-) and Harris County ($600,000 maximum) per the Interlocal
Agreement between the City of La Porte and Harris County.
The project is eligible for reimbursement per the TIRZ Project Plan, when revenues are available.
The Agreement under consideration provides for reimbursement from future TIRZ revenues to reimburse Harris County
and the La Porte Development Corp. for their advance funding of the project.
- 'lis Agreement between;
La Porte Tax Increment Reinvestment Zone #1 (TIRZ)
La Porte Redevelopment Authority (LPRA)
City of La Porte (CLP)
La Porte Development Corporation (LPDC)
Harris County (Ha. Co.)
provides for a mechanism to reimburse the LPDC and Ha. Co. for their advance funding of the project when revenues are
available. The Agreement also provides for a priority of reimbursement (see paragraph 5.3)
The Agreement has been reviewed and approved by the;
The TIRZILPRA Legal Counsel
Ha. Co. Pct 2
Ha. Co. Office of Economic Development
David Hawes, Executive Director of the TIRZILPRA
City Attorney
The Agreement was approved by the TIRZ and LPRA at their June 30th meeting. After City Council and the LPDC
approve the agreement, it will be forwarded to Ha. Co. for their approval.
!l{1! w
Date
ORDINANCE NO. 2010- 32{O I
AN ORDINANCE APPROVING AND AUTHORIZING SYLVAN BEACH DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF LA PORTE REINVES'l'MBNT ZONE NO.
1; CITY OF LA PORTE REDEVELOPMENT AUTHORITY; HARRIS COUNTY, TEXAS; LA
PORTE DEVELOPMENT CORPORATION; AND THE CITY OF LA PORTE, TEXAS; MAKING
VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFE'CTIVE DATE
HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes the
contract, agreement, or other undertaking described in the title of
this ordinance, a copy of which is on file in the office of the City
Secretary. The City Manager is hereby authorized to execute such
document and all related documents on behalf of the City of La Porte.
Section 2.
The City Council officially finds, determines,
-
recites, and declares that a sufficient written notice of the date,
,
hour, place and subject of this meeting of the City Council was posted
at a place convenient to the public at the City Hall of the City for
the time required by law preceding this meeting, as required by the
Open Meetings Law, Chapter 551, Texas Government Code; and that this
meeting has been open to the public as required by law at all times
during which this ordinance and the subject matter thereof has been
discussed, considered and formally acted upon.
The Ci ty Council
further ratifies, approves and confirms such written notice and the
contents and posting thereof.
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this I~ay of
ATTEST:
L1Vl!~ d~1t4
Martha A. Gillett
City Secretary
APPROVED:
~~ r 4-~
ark T. Askins
Assistant City Attorney
By:
J/Plt/
/
, 2010.
.,
,0._
DEVELOPMENT AGREEMENT
This Development Agreement (this "Agreement") is made as of 1, /),- ,2010, by and between
the REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS (the
"Zone "), a tax increment reinvestment zone created by the City pursuant to Chapter 311 of the
Texas Tax Code, as amended, acting by and through its governing board of directors (the "Zone
Board"), LA PORTE REDEVELOPMENT AUTHORITY, a nonprofit local government
corporation formed by and on behalf of the City of La Porte, Texas (the "Authority "), and CITY
OF LA PORTE, TEXAS a home-rule city (the "City "),the LA PORTE ECONOMIC
DEVELOPMENT CORPORATION, a non-profit corporation organized under the laws of the
State of Texas (the "Development Corporation") and HARRIS COUNTY, a body corporate and
politic under the laws of the State of Texas, (the "County").
RECITALS
WHEREAS, pursuant to Chapter 311 of the Texas Tax Code, as amended, the City Council of
the City (the "City Council") created the Zone in the City; and
WHEREAS, the Zone Board adopted a project and financing Plan (as defined below in Section
1.1), as amended, that provides that the Zone will undertake to make certain acquisitions and
improvements in the Zone, and was approved by the City Council; and
WHEREAS, the Texas Tax Code provides that the Zone may enter into agreements as the Zone
Board considers necessary or convenient to implement the Plan and achieve its purposes; and
WHEREAS, the City and the Zone have contracted with the Authority as a nonprofit Texas
local government corporation pursuant to the provisions of Chapter 431, Subchapter D, Texas
Transportation Code, as amended, to carry out the purposes of the Zone, including
administration, supervision, construction, financing and other duties, and have committed the
revenues of the Zone to the Authority for such purposes, all as more particularly set forth in the
Agreement Between the City, the Zone and the Authority, dated July 9, 2001 (the "Tri-Party
Agreement"); and
WHEREAS, the City, the Development Corporation and the County wish to make certain
improvements within the Zone, to further development within the Zone and to carry out the
purposes of the Zone as described in the Plan, and provide for the reimbursement of the
Development Corporation and the County for such improvements in accordance with such Plans;
and
Whereas, the City has entered into an agreement pursuant to that certain Special Document
No. SD 2008-0002 with the State of Texas (the "State") and that certain Project Cooperation
Agreement (the "Cooperation Agreement") CEPRA Project No. 1404 with the General Land
Office, (the "GLO") that provides terms and conditions for the Project (as defined below in
Section 1.1); and
".............
Page 1 of 11
Whereas, the Development Corporation has agreed to provide certain funding to the City for
the Proj ect; and
Whereas, Harris County has agreed to provide certain funding for the Project; now,
therefore,
AGREEMENT
For and in consideration of the mutual promises, covenants, obligations, and benefits of this
Agreement, the Zone, the Authority, the City, the Development Corporation and the County
contract and agree as follows:
ARTICLE 1
GENERAL TERMS
1.1 Definitions. The terms "Agreement," "Authority," "City," "City Council ",
"Cooperation Agreement", "County", "Development Corporation", "GLO", "State" ,"Tri-
Party Agreement", "Zone," and "Zone Board," have the meanings set forth in the preamble
hereof, and the following capitalized terms shall have the meanings provided below, unless
otherwise defined or the context clearly requires otherwise. For purposes of this Agreement the
words "shall" and "will" are mandatory, and the word "may" is permissive.
Act shall mean the Tax Increment Financing Act, Chapter 311, Texas Tax Code, as amended.
Authority Bonds shall mean any bond, note or other obligation issued or incurred in one or more
series pursuant to Article V, secured by Tax Increment or funds deposited in the Revenue Fund,
including refunding bonds.
Advances shall mean any funds advanced by the Development Corporation or the County to City
pursuant to Section 5.1(a), and shall include any interest payable thereon.
Interlocal Agreement shall mean an agreement between the City and the County regarding the
County's participation in funding the Project approved by City ordinance 2008-3070 dated
March 24, 2008, and approved by County April 8, 2008.
LP ISD shall mean the La Porte Independent School District.
Net Tax Increment shall mean the annual collections of the Tax Increment, less (i) any amounts
required to be disbursed to LPISD for the payment of project costs related to educational
facilities incurred directly by LPISD, and (ii) amounts reasonably required or anticipated to be
required for the administration and operation of the Zone, including a reasonable operating
reserve.
Page 2 of 11
~-
Parties or Party shall mean the Zone, the Authority the City, the Development Corporation and
the County as parties to this Agreement.
Plan shall mean the final project plan and reinvestment zone financing plan for the Zone, as
amended, as approved by City Council.
Project shall mean the Sylvan Beach Shoreline Protection and Beach Nourishment Project
described in the Project Agreements.
Project Agreements shall mean Special Document No. SD 2008-0002, between the State and the
City; the Project Cooperation Agreement, CEPRA Project No.1404, between the GLO and City
and the plans prepared by URS Corporation and titled "Sylvan Beach Shoreline Protection and
Beach Re-nourishment."
Revenue Fund shall mean the special fund established by the Authority and funded with Tax
Increment payments made by the City pursuant to the Tri-Party Agreement (which payments are
attributable to incremental ad valorem property taxes paid on the Project and other properties in
the Zone).
Tax Increment shall mean funds deposited in the Revenue Fund by the City pursuant to the Tri-
Party Agreement, comprised of funds received pursuant to those certain Interlocal Agreements or
similar agreements between the City, the County and the Zone; the City, and the Zone and;
between the City, LPISD and the Zone.
...-
Taxing Unit shall mean individually and collectively the City, the County, and LPISD.
1.2 Singular and plural: gender. Words used herein in the singular, where the context
so permits, also include the plural and vice versa. The definitions of words in the singular herein
also apply to such words when used in the plural where the context so permits and vice versa.
Likewise, any masculine references shall include the feminine, and vice versa.
ARTICLE 2
REPRESENTATIONS
2.1
itself that:
Representations. Each Party to this Agreement hereby represents on behalf of
(A) It is duly authorized, created and existing in good standing under the laws of the
State and is duly qualified and authorized to carry on the governmental functions and operations
as contemplated by this Agreement.
(B) It has the power, authority and legal right to enter into and perform this
Agreement and the execution, delivery and performance hereof (i) has been duly authorized, (ii)
will not, to the best of its knowledge, violate any applicable judgment, order, law or regulation,
and (iii) does not constitute a default under, or result in the creation of, any lien, charge,
Page 3 of 11
-
encumbrance or security interest upon any assets of such Party under any agreement or
instrument to which such Party is a party or by which such Party or its assets may be bound or
affected.
(C) This Agreement has been duly authorized, executed and delivered by such Party
and, constitutes a legal, valid and binding obligation ofthe such Party, enforceable in accordance
with its terms.
(D) The execution, delivery and performance of this Agreement by such Party does
not require the consent or approval of any person which has not been obtained.
ARTICLE 3
THE PROJECT
3.1 The Proi ect. The Proj ect is intended to enhance the proposed implementation of a
development within the Zone as a whole, as more fully described in the Plan.
3.2 Proiect Description. The Project consists of improvements to the Shoreline of
Sylvan Beach Park as more fully described in the Project Agreements together with any
modifications, alternates or phased construction approved, in writing, by parties to the Project
Agreements. Project shall include all engineering, legal and other consultant fees and expenses
allowed by the Project Cooperation Agreement.
.-
3.3 Additional Proiects. This Agreement does not apply to any projects not
specifically defined herein unless this Agreement is amended to provide for the design and
construction of such additional projects.
ARTICLE 4
DUTIES AND RESPONSIBILITIES OF THE CITY AND COUNTY
4.1 Responsibilities of the City. The City has entered into Project Agreements with the State
through the GLO in regard to the final design, bidding and construction funding of the Project.
The City agrees to comply with the covenants and agreements contained within the Project
Agreements.
4.2 Proiect Completion. Upon completion of the Project, the City shall provide the
Authority, Zone and County with a final cost summary of all costs associated with the Project,
and show that all amounts owing to contractors and subcontractors have been paid in full as
evidenced by customary affidavits executed by such contractors. The City shall also provide
verification to the Zone, Authority and County that the Project was constructed as authorized by
the GLO.
4.3 Responsibilities of the County. Upon receipt of verification that the Project was
constructed as authorized by the GLO, the County shall assist the City by performing the
Page 4 of 11
maintenance and annual reporting required by Article 4.03 (B) and (C) of the Special Document
No. SD 2008-0002.
ARTICLE 5
PROJECT FINANCING AND FUNDING
5.1 The Development Corporation and County Advances.
(a) (i) The Development Corporation has advanced the City $700,000 to be used by
the City for the Project.
(ii)The County, pursuant to the provisions of the Interlocal Agreement, has advanced the
City, $600,000 to be used by the City for the Project.
(iii)To the extent possible, the City will expend the moneys described in subparagraphs
(i) and (ii) above on the Project on a equal dollar for dollar basis between the Development
Corporation and the County up to the County's maximum contribution of $600,000.00. After
completion of the Project, the City agrees to return respective funds of the Development
Corporation and the County remaining after the City has met the funding obligations contained
in the Project Cooperation Agreement.
-
(b) Interest on each Advance shall accrue at a rate equal to the prime commercial lending
rate of Chase Manhattan Bank, National Association, or any successor to its commercial
banking activities, plus one percent per annum, compounded semiannually, whether such costs,
fees, or expenses are paid or incurred before or after the effective date of this Agreement. Interest
shall be calculated on the basis of a year of 360 days and the actual days elapsed (including the
first day but excluding the last day) occurring in the period for which such interest is payable,
unless such calculation would result in a usurious rate, in which case interest shall be calculated
on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed
(including the first day but excluding the last day).
5.2 Repayment of Advances.
(a) In consideration of the construction of the Project, the Authority shall begin repaying
the Advances, and shall continue such repayment until repaid in full, on the earliest date that
funds are available from any of the following sources, and solely from such sources:
(i) proceeds from the sale of the Authority Bonds, as set forth in subsection (c), and
(ii) the Net Tax Increment, subject to the limitations set forth in subsection (d).
(b) To the extent that funds from the sources listed above are insufficient on any
scheduled date for the repayment of Advances to repay all outstanding Advances in full,
repayment of Advances shall be made on a pro rata basis between the Development Corporation
and the County on the basis of monies available for repayment.
,-
Page 5 of 11
-- (c) As provided herein, the Authority shall issue one or more series of Authority Bonds
at the earliest feasible date, which Authority Bonds will be secured by a pledge of the Revenue
Fund. The net proceeds of the Authority Bonds shall be deposited to a special fund of the
Authority, and shall be used by the Authority to reimburse the Development Corporation and the
County for the full amount (or such portion thereof as is deemed by the Authority as supportable
by available Tax Increment as provided below) for eligible Development Corporation and the
County Advances, plus interest. Such Authority Bonds shall be sold within 120 days (or such
other period as may be agreed by the Parties) of a written request therefore from the
Development Corporation and the County; provided that the City's Net Tax Increment (based
upon the tax valuation of the Zone as certified or estimated by the Harris County Appraisal
District, or its successor) expected to be generated with respect to available Tax Increment is
sufficient to support the applicable Authority Bonds bearing interest at the then current rate of
interest as determined by the Authority's financial advisor for comparable issues, after taking
into account the portion of the City's Net Tax Increment required to pay any outstanding
Authority Bond issued for any purpose, including Authority Bonds issued to refund outstanding
Authority Bonds. The City's Net Tax Increment is determined as the total Net Tax Increment,
less any amounts that are used or to be used to determine eligibility of developers within the
Zone for reimbursement of advances to the Authority for construction or anticipated construction
of public improvements under the Plan pursuant to reimbursement agreements approved by the
Authority, either now or during the life of the Zone.
(d) In addition to the Development Corporation's and the County's right to
reimbursement from Authority Bond proceeds, upon request from the Development Corporation
and the County, the Authority shall reimburse the Development Corporation and the County
Advances, plus interest, from the City's Net Tax Increment (computed as above) accumulated in
the Revenue Fund and available in accordance with the priorities described in Section 5.3,
below.
(e) At such time as funds are available to pay all or any portion of the Development
Corporation and the County Advances made hereunder, the Authority shall hire a certified public
accountant to calculate the amount due the Development Corporation and the County and
prepare and submit a report to the Authority certifying (1) the amount due the Development
Corporation and the County for the Development Corporation and the County Advances being
repaid with interest calculated thereon, and (2) that funds are available to make such payment.
Such report shall be approved at the earliest practicable time, but not later than 90 days after
submission by the Development Corporation and the County of the records required therefore.
The Authority shall make payment to the Development Corporation and the County within 30
days of approval of the auditor's report.
(f) The Authority shall provide to the Development Corporation and the County, upon
their written request, and on the earliest date such information is available after the date of such
request, certified copies of all statements of revenue and the sources of such revenue of the Zone
and Authority the intended use of which is to verify the availability of funds for repayment of the
City Advances, if applicable, under this section.
5.3. Priorities. Amounts deposited in the Revenue Fund shall be applied in the
following order of priority (i) disbursement to LPISD, if applicable, for educational facilities In
Page 6 of 11
- accordance with any interlocal agreement with LPISD, the City and the Zone; (ii) administrative
costs of the Zone and the Authority; (iii) amounts pledged or required for the payment of
outstanding Authority Bonds, including Authority Bonds in the process of issuance and
refunding Authority Bonds, and (iv) payments to the City for funding the Southeast Sanitary
Sewer Trunk Main and Lift Station Facilities per Development Agreement between the Zone,
Authority and City dated 6/12/06 and (v) payments to the Development Corporation and the
County pursuant to Section S.2( d), above.
5.4. Multiple developers, the Development Corporation and the County. The
Authority has entered into other agreements with developers of land within the Zone for the
financing of Zone Improvements, and may enter into others. It is the intention of the parties that
each developer shall be responsible for the creation of Tax Increment required for its own
reimbursement. In such case, the Tax Increment generated within a developer's project as
defined in the applicable reimbursement agreement shall not be considered in determining
whether sufficient Net Tax Increment exists for the issuance of Authority Bonds, or direct
payment of available Net Tax Increment, for reimbursement of Advances unless the applicable
developer shall give its written consent thereto. The net proceeds of Authority Bonds issued to
reimburse multiple developers and the Development Corporation and County shall be allocated
based upon the proportion of Tax Increment generated by each developer, or such other method
as the developers may agree upon, and any unallocated Tax Increment shall be used for
calculation of the City's Net Tax Increment and reimbursement of Advances.
,-
ARTICLE 6
DEFAULT
6.1 Default
(a) If any Party does not perform its obligations hereunder in substantial compliance
with this Agreement, in addition to the other rights given the other Parties under this Agreement,
such non-defaulting Parties may enforce specific performance of this Agreement or seek actual
damages incurred by the Development Corporation and County for any such default.
(b) The Party alleging default shall provide written notice to the other party of such
default, and the defaulting party shall have 60 days to remedy the default prior to the declaration
of any default hereunder.
ARTICLE 7
GENERAL
7.1 Inspections, audits. The City agrees to keep such records with respect to the
Project and all costs associated therewith as may be required by the Authority, the Zone, or by
State and federal law or regulation. The City shall allow the Zone access to, and the Zone shall
have a right at all reasonable times to audit, all documents and records in the City's possession,
custody or control relating to the Project that the Authority deems necessary to assist the
--
Page 7 of 11
Authority in determining the City's, Development Corporation's and County's compliance with
this Agreement.
7.2 City operations and employees. All personnel supplied or used by the City in the
performance of this Agreement shall be deemed employees, contractors or subcontractors of the
City and will not be considered employees, agents, contractors or subcontractors of the Zone or
the Authority for any purpose whatsoever. The City shall be solely responsible for the
compensation of all such contractors and subcontractors.
7.3 Personal liability of public officials. legal relations. To the extent permitted by
State law, no director, officer, employee or agent of the Zone or the Authority shall be personally
responsible for any liability arising under or growing out of the Agreement. THE PARTIES SHALL
INDEMNIFY AND SAVE HARMLESS EACH OTHER AND THEIR RESPECTIVE OFFICERS.
REPRESENTATIVES. AND AGENTS FROM ALL SUITS. ACTIONS. OR CLAIMS OF ANY CHARACTER
BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED BY ANY PERSON.
PERSONS. OR PROPERTY RESULTING FROM THE NEGLIGENT ACTS OF SUCH PARTY. OR ANY OF ITS
AGENTS. OFFICERS. OR REPRESENTATIVES IN PERFORMING ANY OF THE SERVICES AND ACTIVITIES
UNDER THIS AGREEMENT. The expenses of the Zone or the Authority with respect to this section
or Section 7.15, below, shall be satisfied from uncommitted City Net Tax Increment.
7.4 Notices. Any notice sent under this Agreement (except as otherwise expressly required) shall be
written and mailed, or sent by electronic or facsimile transmission confirmed by mailing written confirmation at
_substantially the same time as such electronic or facsimile transmission, or personally delivered to an officer of
he receiving party at the following addresses:
La Porte Redevelopment Authority
P.O. Box 22167
Houston, Texas 77227-2167
Attn: David Hawes
La Porte Development Corporation
604 W. Fairmont Parkway
La Porte, Texas 77571
Reinvestment Zone Number One
P.O. Box 22167
Houston, Texas 77227-2167
Attn: David Hawes
Harris County
Harris County Community Services Department
Office of Economic Development
8410 Lantern Point Drive
Houston, Texas 77054
Attn. David B. Turkel, Director of
Community Services Department
Cc: Commissioner, Harris County Precinct 2
City of La Porte
604 W. Fairmont Parkway
La Porte, Texas 77571
Attn: City Manager
-~ach party may change its address by written notice in accordance with this section. Any communication
addressed and mailed in accordance with this section shall be deemed to be given when so mailed, any notice so
Page 8 of 11
sent by electronic or facsimile transmission shall be deemed to be given when receipt of such transmission is
acknowledged, and any communication so delivered in person shall be deemed to be given when receipted for
by, or actually received by, the Authority, the Zone, or the City, as the case may be.
7.5 Amendments and waivers. Any provision of this Agreement may be amended or waived if such
amendment or waiver is in writing and is signed by the Zone, the Authority the City, the Development
Corporation and the County. No course of dealing on the part of the Parties, nor any failure or delay by one or
more of the Parties, with respect to exercising any right, power or privilege under this Agreement shall operate
as a waiver thereof, except as otherwise provided in this section.
7.6 Invalidity. In the event that any of the provisions contained in this Agreement shall be held
unenforceable in any respect, such unenforceability shall not affect any other provision of this Agreement.
7.7 Successors and assigns. All covenants and agreements contained by or on behalf of a Party in
this Agreement shall bind its successors and assigns and shall inure to the benefit of the other Parties, their
successors and assigns.
7.8 Exhibits: titles of articles, sections and subsections. The exhibits attached to this Agreement are
incorporated herein and shall be considered a part of this Agreement for the purposes stated herein, except that
in the event of any conflict between any of the provisions of such exhibits and the provisions of this Agreement,
the provisions of this Agreement shall prevail. All titles or headings are only for the convenience of the Parties
and shall not be construed to have any effect or meaning as to the agreement between the Parties. Any reference
herein to a section or subsection shall be considered a reference to such section or subsection of this Agreement
unless otherwise stated. Any reference herein to an exhibit shall be considered a reference to the applicable
exhibit attached hereto unless otherwise stated.
,..-
7.9 Construction. This Agreement is a contract made under and shall be construed in accordance
with and governed by the laws of the United States of America and the State of Texas; as such laws are now in
effect.
7.10 Entire Agreement. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR. CONTEMPORANEOUS. OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.
7.11 Term. This Agreement shall be in force and effect from the date of execution hereof for a term
expiring on the date that all Advances have been repaid in full, or January 1 of the year following the expiration
of the Zone.
7.12 Time of the essence. Time is of the essence with respect to the obligations ofthe Parties to this
Agreement.
7.13 Approval by the Parties. Whenever this Agreement requires or permits approval or consent to be
hereafter given by any of the parties, the parties agree that such approval or consent shall not be unreasonably
conditioned, withheld or delayed.
7.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which when so
,_executed and delivered shall be deemed together shall constitute but one and the same instrument.
Page 9 of 11
7.15 Legal costs. If any Party hereto is the prevailing party in any legal proceedings against another
Party brought under or with relation to this Agreement, such prevailing Party shall additionally be entitled to
recover court costs and reasonable attorneys= fees from the non-prevailing Party to such proceedings.
7.16 Further assurances. Each Party hereby agrees that it will take all actions and execute all
documents necessary to fully carry out the purposes and intent of this Agreement.
7.17 Effect of Tri-Party Agreement. The obligations of the Parties hereunder are specifically
conditioned upon the approval, execution, and effectiveness of the Tri-Party Agreement.
[EXECUTION PAGE FOLLOWS]
Page 10 of 11
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of
,2010.
REINVESTMENT ZONE NUMBER
ONE, CITY OF LA PORTE, TEXAS
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Title: Prfc~( elf fel
HARRIS COUNTY
By:
Name:
Title:
LAPORTE REDEVELOPMENT
AUTHORITY
By: $#!~
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Name: J'JrVJ<:;.-ej Pfp'.~+{'.pr
Title: Rp .2 ~rJ.p^-- +
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CITY( OF ~/ ..i?
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By: K-
Name:
Title:
LA PORTE DEVELOPMENT
CORPORATION
By: /2-~,
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Name: If: CA ~{'t> Cv qj~e,&-~
Title: j?;'U;:j {t /1,
Page 11 of 11
7
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested 7/12/10
Appropriation
Requested By
Fiscal Affairs Committee
Source of Funds:
Department:
Account Number:001-6146-515-5004
Report X Resolution:
Ordinance:
Amount Budgeted:
Exhibits: Engagement Letter
Amount Requested:
$5,000.00
SUMMARY & RECOMMENDATION
At the June 28, 2010 City Council approved the recommendation of Belt Harris Pechacek by the Fiscal Affairs
Committee as the firm to conduct a forensic audit review of the Town Plaza Project at a cost not to exceed
$20,000.00.
The Fiscal Affairs Committee met on July 8, 2010 to review and consider approving the scope of work to be
performed by Belt Harris Pechacek in conducting an agreed upon procedures report on the Town Plaza Project and
approve an engagement letter with the firm.
After review of the scope of work to be performed and estimated man-hour effort, Belt Harris Pechacek requested an
initial authorization of $24,600.00, an additional cost of $5,000.00.
Attached is an Engagement Letter for Agreed Upon Procedures. The fee for services will be billed at the firm's
standard hourly rates plus out of pocket expenses, not to exceed $24,600.00 without prior written approval. The
Fiscal Affairs Committee is recommending City Council authorize a contract for professional services with Belt
Harris Pechacek, and authorize an additional $5,000.00 for services provided.
7-/5"~/o
Date
Engagement Letter for
Agreed Upon Procedures
July 8, 2010
We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for
the City of La Porte, Texas (the "City").
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Honorable Mayor and City Council
City of La Porte
604 W. Fairmont Parkway
La Porte, TX 77571
We will apply the agreed-upon procedures which the City has specified, listed in the attached schedule
("Exhibit A"), to analyze transactions associated with the City's 5-Points Project. This engagement is solely to
assist the City for the purpose of gaining a better understanding of certain aspects of the 5-Points Proj ect as they
relate to applicable City and 4B Development Corporation policies and procedures as well as applicable State
law. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation
standards established by the American Institute of certified Public Accountants. The sufficiency of the
procedures is solely the responsibility of those parties specified in the report. Consequently, we make no
representation regarding the sufficiency of the procedures described in Exhibit A either for the purpose for
which this report has been requested or for any other purpose. If, for any reason, we are unable to complete the
procedures, we will describe any restrictions on the performance of the procedures in our report, or will not
issue a report as a result of this engagement.
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Because the agreed-upon procedures listed in Exhibit A do not constitute an examination, we will not express
an opinion on transactions associated with the City's 5-Points Project. In addition, we have no obligation to
perform any procedures beyond those listed in Exhibit A.
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We will submit a report listing the procedures performed and our [mdings. This report is intended solely for the
use of the City and should not be used by anyone other than this specified party. Our report will contain a
paragraph indicating that had we performed additional procedures, other matters might have come to our
attention that would have been reported to you.
You are responsible for the presentation of the requested items in accordance with the procedures listed above;
and for selecting the criteria and determining that such criteria are appropriate for your purposes. You are also
responsible for making all management decisions and performing all management functions; for designating an
individual with suitable skill, knowledge, and lor experience to oversee the services we provide; and for
evaluating the adequacy and results of those services and accepting responsibility for them.
Partners
Robert Belt, CPA
Stephanie E. Harris, CPA
N<lthan Krupke, CPA
Partner of Counsel
John R. Pechacek, CPA
Houston
730 N. Post Oak Rd., Ste. 401
Houston, TX 77024
713.263.1123
Benvine
6100 Windy Hill Lane
Bellville, TX 77418
979.865.3] 69
Austin
100 COr1~rt:ss Ave., Src. 2000
Austin, TX 7870]
5]2.381.0222
All Offices
ww\'.\ tcxasaudi tors. com
info(<hxauditors.c(lfl1
713.263.1550 fa-x
== Governmental
_ Audit Quality Center
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We plan to begin our procedures when the City approves the start date and unless unforeseeable conditions are
encountered, the engagement should be completed within 6 weeks. At the conclusion of our engagement, we
will require a representation letter from management that, among other things, will confIrm management's
responsibility for the presentation of the subject matter in accordance with the established criteria.
Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report
reproduction, travel, etc.) Our hourly rates vary according to the degree of responsibility involved and the
experience level of the personnel assigned to the engagement which range from $125 to $245 per hour. We
expect that a project of this nature will entail using one of our in-charge auditors ($125 per hour), with the
exception of clerical support. We estimate 168 hours will be expended on this project. Fees for our services
under this agreement will not exceed $24,600 without prior written approval.
Our invoices for these fees will be rendered each month as work progresses and are payable within 30 days. In
accordance with our fIrm policies, work will be suspended if your account becomes 30 days or more overdue
and will not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment,
our engagement will be deemed to have been completed even if we have not completed our report. You will be
obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the
date of termination. Notwithstanding anything contained in this engagement to the contrary, in the event no
funds or insuffIcient funds are appropriated and budgeted or are otherwise unavailable in any fIscal period for
fees due under this engagement agreement, the City will immediately notify us in writing of such occurrence
and this agreement shall terminate on the last day of the fIscal period for which appropriations have been
received or made.
Any client certifIed public accountant involved with assisting us shall not be prohibited from disclosure of
information required to be made available by the standards of the public accounting profession in reporting on
the examination of [mancial statements. Management understands and provides permissions to staff certifIcate
or registration holders as required under the Rules of Professional Conduct, Texas Administrative Code, Title
22, Part 22, Chapter 501, Subchapter C, Section 501.75.
We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms
of our engagement. If you have any questions, please let us know. If you agree with the terms of our
engagement as described in this letter, please sign the enclosed copy and return it to us. If the need for addi-
tional services arises, our agreement with you will need to be revised. It is customary for us to enumerate these
revisions in an addendum to this letter. If additional specified users of the report are added, we will require that
they acknowledge in writing their responsibility for the sufficiency of procedures.
Sincerely,
S~'H~S'::~'
Partner
RESPONSE:
This letter correctly sets forth the understanding ofthe City of La Porte, Texas.
~~~
7/IJi6
Authorized Representative
Date
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Date - f
07 ~ 2/;0
I ,
Date
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W40Y fro 1eM
'IJl)/O
Exhihit A
Obtain further understanding of 5-Points Project and areas of concern through interviews of
Fiscal Affairs Committee Members and Concerned Citizen, as well as by a review minutes and open records request by Citizen
to further defme scope.
2 Obtain listing of all expenditures coded to 5-Point Project as recorded on the City's and/or 4B Development
Corporation General Ledger and review supporting documents/invoices against applicable policies and
procedures for preparation of exhibit for final report.
3 Obtain copy ofEDC Project plan and other applicable documents associated with advertising and approval
offmal project by City Council and review for compliance with applicable State Statute/By-laws.
4 Prepare timeline of events associated with 5-Point Project from inception to completion thru review of minutes and other interviews.
5 Question officials about an alleged meeting on 10/1/08 with URS to determine if there was a violation of the open meetings act.
6 Review the contract and resulting invoices for services as submitted by URS (Project Engineer) to the City in
connection with the 5-Points Project for accuracy and compliance with the City's applicable policies and procedures.
7 Review process for selection of 5-Points Project Engineer and Construction Contractor for compliance with applicable State Statute.
8 Verify filing of Conflict of Interest by 4B Development Board Member.
9 Review the expenditure of funds by the 4B Development Corporation for the 5-Points Project for compliance with
applicable State Statutes.
10 Verify proper authorization for expansion of funding for 5-Points Project.
11 Review transactions between the City and Developer as they relate to the following:
11 a Criteria used for providing loan to Developer
11 b Review loan documents to determine compliance with the agreement and applicable laws and regulations
11 c for repayment by Developer
Obtain Confirmation from the City to determine depositor of wire transfer used for repayment of loan
12 Review various real estate transactions between the City/4B Development Corporation and the Developer as they relate to the following
12a The sale of a portion of San Jacinto St. to Developer
12b Payment of property taxes on Triangle Property
12c Review of evidence of payments made by City to all parties at closing on Triangle Property
12d Review of Exhibit C for proper execution
12e Review title history along with lien documents on property if available and timing of transactions
13 Prepare report
14 Review procedures completed and report
E,xhi,bit A
Est. Hours Est. Hours Auditor Partner Total Cost Total Cost
Procedure Auditor Partner Billing Rate Billing Rate Auditor Partner Total
8
12 $
125 $
225 $ 1,000 $ 2,700 $ 3,700
2 16 125 225 2,000 2,000
3 6 125 225 750 750
4 12 125 225 1,500 1,500
5 6 125 225 750 750
6 12 125 225 1,500 1,500
7 8 125 225 1,000 1,000
8 1 125 225 125 125
9 6 125 225 750 750
10 6 125 225 750 750
lIa 4 125 225 500 500
lIb 4 125 225 500 500
lIe 2 125 225 250 250
12a 2 125 225 250 250
12b 2 125 225 250 250
12c 1 125 225 125 125
12d 4 125 225 500 500
12e 8 125 225 1,000 1,000
13 24 125 225 3,000 3,000
14 24 125 225 5,400 5,400
132 36 $ 16,500 $ 8,100 $ 24,600
REQUEST FOR CITY COUNCIL AGENDA ITEM
genda Date Requested: 7/12/10
Requested By: Stacey Osborne
Department: Administration
Appropriation
Source of Funds:
Account Number:
Report:
Resolution:
Ordinance:
Amount Budgeted:
Amount Requested:
Budgeted Item: YES NO
Exhibits: Texas Enterprise Zone Presentation
Exhibits:
Exhibits:
SUMMARY & RECOMMENDATION
The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to
promote job creation/retention and capital investment in economically distressed areas of the state. Companies that wish to apply
for Texas Enterprise Zone Program designation must have the nomination of a local community in order to participate.
E. I. du Pont de Nemours and Company ("DuPont") is planning to invest approximately $70 million in the next five years, and
they have committed to retaining a total of 490 jobs at the La Porte facility. DuPont is requesting a nomination for Texas
Enterprise Zone Project designation from the City of La Porte, which would allow them to apply for Texas Enterprise Zone
Project designation from the State of Texas, Office of the Governor. We recently nominated Invista as a Texas Enterprise Zone
-.oject, and we discussed the program in depth at that time. I am happy to explain the program once more and answer any
Jditional questions you might have tonight. Scott Grisham from Deloitte Tax LLP, who is representing DuPont, is also here, as
well as a representative from DuPont if you have any questions about the DuPont nomination. If Council is amenable, we would
like to schedule a public hearing and a resolution before Council at the July 26,2010 Council Meeting to nominate DuPont for
this designation.
Following is some information about DuPont's La Porte site:
The site opened in 1956 to manufacture chemicals for the Grasselli Chemicals Department. Through the 1960s and 1970s, the plant
produced Hyvar@ X bromacil weed killer and opened new facilities for formaldehyde production and other biochemicals. One of La
Porte's main products is herbicides: production ofGlean@ herbicide began in 1983 and Velpar@ in 1988. La Porte is also the site of
the world's largest polyvinyl alcohol plant, which is used in weaving polyester blends. In the 1990s, La Porte developed new
environmental programs as part of DuPont's goal of zero waste and zero emissions. La Porte's revolutionary Terathane@production
system cut air emissions by 200,000 pounds, brought solid waste down 25 million pounds, and reduced liquid waste by 500 million
pounds. The new process saved DuPont over $5 million a year, proving that environmental protection could be good for business. The
La Porte Terathane@ team has earned Excellence Awards from DuPont and accolades from the state of Texas.
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Date
12
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CITY COUNCIL DRAINAGE REPORT
July 12,2010
Klotz Design and Contract Construction
. Design of Sheet Flow Relief Structure Improvements to Creekmont. Fairmont
Park West. Brookglen and Fairmont Park East. Only one bid received. Bid
rejected - over budget. Bidders contacted to determine concerns - plans and
specifications under revision to address concerns. Expect to rebid in late July or
early August.
. Drainage Study of Brookglen. Design is 90% complete. Awaiting comments
from HCFCD to make any necessary revisions. Expect to bid this Project in Late
July or early August.
· Fairmont Park East - Fleetwood Drive. Design is 90% complete. Model runs for
5, 10, 25 and 100 year storm events presented to the Drainage and Flooding
Committee on June 28th, along with cost estimates for additional paving not
included in original proposal. The Committee directed staff to proceed with
design. Expect to bid this Project in August.
In-House Design and Construction of City-initiated Proiects.
· South La Porte Bay Outfalls. Oakhurst - Tentative schedule for bidding IS
August, subject to funding by the state.
· F-216 Regional Detention Proiect. Clearing of F-216 regional detention is still
approximately 60% complete. TxDOT has advised that the fill from this Project
is not meeting specification for use in the Wharton Weems Overpass Project. At
this time, excavation has been halted until TxDOT determines if the fill can
continue to be used. Corps of Engineers permit is being drafted - receipt is
expected soon.
· City- Wide De-silting of Major Channels - Staff has identified several major
channels not currently maintained by flood Control for possible de-silting. These
include B106-05, Arizona from E Street to Park, South 3rd Street from Fairmont
Parkway to the WWTP and several side channels off South 8th. Survey is 80%
complete. Design of improvements is complete and under review by staff.
Expect to bid in August.
. Coordination with Harris County Flood Control District. - HCFCD has
completed the F 101 de-silting. Scope of work was drastically reduced for original
proposal. Harris County Precinct 2 is investigating why this project was reduced.
In-House Drainage Maintenance Activities.
. North and South Shady Lane. City has received the signed easement for North
Shady Lane. Minor design changes are underway to accommodate waterline
conflict. Expect to receive quotes in late July or early August..
Survey and design is complete to provide sheet flow in lieu of underground
drainage on Broadway and Sunrise into the Bayport Channel. Project is under
review by the Port of Houston and Exxon Pipeline.
. In-Fill Drainage. Cleaned ditches in various areas of the city. Currently
concentrating in the area on South ih and South 8th. This area will be completed
this month. Crews also addressed several isolated problems in the Spenwick area.
Additional work will resume in Spenwick after completion of South 8th Street.
Civil Concepts, a survey firm, has been contracted to perform elevation and
topographical survey of South 8th Street, East Main and North and South 16th
Streets. Survey completed on South 8th - improvements under design. Survey
underway on East Main..
· Total Drainage Maintenance Completed This Period
o Cleaning of Ditches 10,729 LF
o Cleaning of Culverts 0 LF
o Resetting Culverts 350 LF
Statue at 5 Points
http://laportepolls.com/statlc. htm
La Porte Polls
The city of La Porte is planning on putting a sculpture at the new 5 points Park down town.
They are asking for the citizens for suggestions. They are sending out a questionnaire with
the water bills this month.
There are 4 choices
Dolphin
Egret
Mermaid
Seagull
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7/12/2010 04:31 PM
Statue at :; Points
,.,.-..
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http://laportepolJ s.comlstatlll~. htm
We are adding a 5th choice. It is statue of the Yellow Rose of Texas..
A woman named Emily West migrated to Texas from New York City in late 1835 and lived
at Morgans Point with James Morgan..Sources describe her as a teen or as a woman of
twenty. Emily D. West - a mulatto, and hence, the song's reference to her being "yellow"
- who was seized by Mexican forces during the looting of Galveston. West seduced
General Antonio Lopez de Santa Anna, President of Mexico and commander of the Mexican
forces and kept him busy while a young boy maybe her son ran off and told Sam Houston
where Santa Anna was.. Santa Anna ran from her tent in his underwear and hid in the
woods near La Porte..His soldiers had lowered the guard of the Mexican army facilitating
the Texan victory in the Battle of San Jacinto waged in 1836 near present-day Morgans
Point.. Santa Anna's opponent was General Sam Houston, who won the battle literally in
minutes, and with almost no casualties. This battle won Texas it's Independence, thanks to
the Yellow Rose of Texas of Morgans point and La Porte. Santa Anna was captured by Sam
Houston who released him later...A soldier in Sam Houston's army fell in love with Emily
West in 1836 and wrote a poem about her and it later became the famous song 'The
Yellow Rose of Texas"..
\l\lhat would you like to see as the new
statue?
Dolphin 10.8%
7/12/2010 04:31 PM
Statue at 5 Points
http://laportepolls .comlstatu,~. htm
Egret 6.2%
Mermaid 15.4%
Seagull 29.2%
Yellow Rose of Texas 38.5%
Return To Poll Share This
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7/12/2010 04:31 PM