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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 :~~:j Ptei-ttN Title: Prfc~( elf fel HARRIS COUNTY By: Name: Title: LAPORTE REDEVELOPMENT AUTHORITY By: $#!~ 0/ Name: J'JrVJ<:;.-ej Pfp'.~+{'.pr Title: Rp .2 ~rJ.p^-- + /- /// / ? , CITY( OF ~/ ..i? // By: K- Name: Title: LA PORTE DEVELOPMENT CORPORATION By: /2-~, / 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"). '"0 ...... o <: 5:- S' (Jq () o ~ ...... ::i 8 (1) ::i rt ~ ...... 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. R' z o ::i ~ ...... o ::r-. rt ~ p.. .... rt en 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. CfJ (1) ~ ...... (1) p.. ~ .... rt ::T ~ () (1) ~ ("l) ::i () ("l) 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 ... 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 ? !-n./ /0 Date - f 07 ~ 2/;0 I , Date j)~~ 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. ~ Date 12 - 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 ~_. 10f3 7/12/2010 04:31 PM Statue at :; Points ,.,.-.. 20f3 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 30f3 7/12/2010 04:31 PM