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Home My WebLink About2015-04-27 Regular Meeting of La Porte City Council minutes LOUIS RIGBY OF L A JOHN ZEMANEK ayor �► }' O DARYL LEONARD 'Q Councilmember At Large A rF a Councilmember District 3 DOTTIE KAMINSKI v 4*m TOMMY MOSER Mayor Pro Tem Councilmember District 4 Councilmember At Large B JAY MARTIN DANNY EARP rEXA s Councilmember District 5 Councilmember District 1 MIKE CLAUSEN CHUCK ENGELKEN Councilmember District 6 Councilmember District 2 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF LA PORTE APRIL 27, 2015 The City.Council of the City of La Porte met in a regular meeting on Monday, April 27, 2015, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00 p.m. to consider the following items of business: 1. CALL TO ORDER Mayor Rigby called the meeting to order at 6:00 p.m. Members of Council present: Councilmembers Kaminski, Martin, Moser, Earp, Leonard, Clausen, Zemanek and Engelken. Also present were Assistant City Secretary Sharon Harris and City Manager Corby Alexander. 2. INVOCATION —The invocation was given by Assistant City Attorney Clark Askins. 3. PLEDGE OF ALLEGIANCE—The Pledge of Allegiance was led by Councilmember Jay Martin. 4. PUBLIC COMMENTS (Limited to five minutes per person.) John Kling, 11025 Pinewood Ct., addressed Council in opposition to Consent Agenda Item 5(b). Chuck Rosa, 812 S. Virginia, addressed Council in opposition to Consent Agenda Item 5 (b). 5. CONSENT AGENDA (All consent agenda items are considered routine by City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember requests an item be removed and considered separately.) (a) Consider approval or other action regarding the minutes of the City Council Meeting held on April 13, 2015— P. Fogarty (b) Consider approval or other action authorizing expenditure by the La Porte Development Corporation Board in an amount not to exceed $300,000 in connection with project for economic development incentive to Gantstein Esquire, LLC., for a Pipeline Grill Restaurant —S. Livingston (c) Consider approval or other action regarding an Ordinance amending the City of La Porte Fiscal Year 2014-2015 Budget—M. Dolby Regarding Consent Item 5(b), Councilmember Zemanek questioned the requirements for the $300,000.00 economic development incentive. Economic Development Coordinator Scott Livingston responded upon a certificate of occupancy, Pipeline Grill receives a $100,000; after first year and $4 million in taxable sales they receive the second $100,000; and the second year after proof of $4 million in taxable sales they receive the third payment of $100,000. Councilmember Zemanek questioned what happens if the requirements are not met for the second and third year. Mr. Livingston responded they are given a portion of the $100,000 and the requirements are in the development agreement with claw-back provisions. Councilmember Zemanek asked if the development agreement is provided as a part of the agenda item. Mr. Livingston responded no. Page 1 of 6 April 27, 2015, Council Meeting Minutes Councilmember Zemanek asked if Council is being asked to approve up to $300,000 for an economic development incentive without an agreement. Mr. Livingston advised the La Porte Development Corporation Board members are aware of the terms of the agreement, the funds have been obligated, and an agreement will go back to the Board members. Councilmember Zemanek questioned what will be the percentage of alcohol sales. Kris Gant with Gantstein Esquire, LLC., responded between 15 to 19 percent. Councilmember Earp asked if there are funds available to give to five other local restaurants if requested. Mr. Livingston responded it is unlikely to give up to $300,000 to each restaurant. Councilmember Earp commented he is not in favor of giving the City's tax money to individuals to compete with the people that are actually paying the taxes. Mayor Rigby commented it is not property tax money that is used from the General Fund; it is 4B sales and use tax at a rate of one-half of one percent that is spent in the City of La Porte and comes out of a totally different fund. Councilmember Earp advised he does understand the funds and funding. Councilmember Moser asked if the 4B Sales and Use Tax was voted on by the voters in the City of La Porte and if the funds are mandated by state regulations on the use and collection of funds. Mr. Livingston responded yes. Councilmember Martin commented the La Porte Development Corporation Board did a good job vetting the project. Pipeline Grill is not a bar; it's a restaurant that closes at a reasonable hour; and the neighbors appreciate the property being maintained. In addition, Councilmember Martin advised the La Porte Development Corporation Board is working to establish guidelines for economic development projects for new and existing businesses. Councilmember Zemanek commented he cannot support approving funds for an economic development incentive without knowing the terms of the agreement. Councilmember Earp asked what other means can the sales tax funds be utilized. Mr. Livingston responded the economic development funds can be primarily used for job creation and infrastructure improvements. Councilmember Earp pulled Consent Item 5(b)for a separate vote. Councilmember Engelken asked if the development agreement will come back to Council after it has been ee approved by the La Porte Development Corporation Board. Mr. Livingston responded it doesn't have to come back unless directed by Council. Councilmember Engelken commented it was his understanding at the La Porte Development Corporation Board meeting Mr. Livingston commented the development agreement will come back to the La Porte Development Corporation Board for approval and then back to City Council. Councilmember Engelken also informed he reported the information to City Council during his report from the La Porte Development Corporation on April 13, 2015, and commented the development agreement should come back to City Council. Economic Development Coordinator Scott Livingston advised according to the bylaws, the agreement goes back to only the La Porte Development Corporation Board. Councilmember Moser moved to approve the Consent Agenda Items 5a and 5c pursuant to staff recommendations. Councilmember Leonard seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Clausen, Moser, Leonard, Engelken, Martin, Zemanek, Kaminski and Earp Nays: None Absent: None Page 2 of 6 April 27, 2015, Council Meeting Minutes Councilmember Clausen moved to approve the Consent Agenda Item 5b pursuant to staff recommendations. The motion died for lack of a second. Councilmember Clausen moved to approve Consent Agenda Item 5b to authorize expenditure by the La Porte Development Corporation Board in an amount not to exceed $300,000 in connection with project for economic development incentive to Gantstein Esquire, LLC., for a Pipeline Grill Restaurant after a development agreement has been created and comes back to the La Porte Development Corporation Board and then to City Council for approval. Councilmember Martin seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Clausen, Moser, Leonard, Engelken and Martin Nays: Councilmembers Earp, Zemanek and Kaminski Absent: None Prior to Council vote, Assistant City Attorney Clark Askins read the caption of the ordinance from Consent Agenda Item 5(c): Ordinance 2015-3574: AN ORDINANCE APPROVING AN AMENDMENT TO THE BUDGET FOR THE CITY OF LA PORTE, TEXAS FOR THE PERIOD OF OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2015; FINDING THAT ALL THINGS REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARTION AND PRESENTMENT OF SAID BUDGET; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. 6. PUBLIC HEARINGS AND ASSOCIATED ORDINANCES (a) Public hearing to receive comments regarding recommendation b the Planning and Zoning 9 9 Y 9 9 Commission to approve Rezone Request pp q est#15-92000003, changing the zoning classification from Neighborhood Commercial (NC) to Mixed Use (MU), for Lots 1-28, Block 29; Lots 1-28, Block 30; Lots 1-28, Block 31; Lots 1-28, Block 32; Lots 7-10, Block 49; Beach Park Subdivision, Harris County, Texas— E. Ensey The public hearing opened at 6:31 p.m. City Planner Eric Ensey presented-a summary and advised the Planning and Zoning Commission recommended approval of the request. The public hearing closed at 6:35 p.m. There were no public comments. (b) Consider approval or other action regarding an Ordinance amending Chapter 106 "Zoning" of the Code of Ordinances of the City of La Porte, by changing the zoning classification from Neighborhood Commercial (NC) to Mixed Use (MU), for Lots 1-28, Block 29; Lots 1-28, Block 30; Lots 1-28, Block 31; Lots 1-28, Block 32; Lots 7-10, Block 49; Beach Park Subdivision, Harris County, Texas— E. Ensey Councilmember Leonard moved to approve an Ordinance amending Chapter 106 Zoning of the Code of Ordinances of the City of La Porte by changing the zoning classification from Neighborhood Commercial (NC) to Mixed Use (MU), for Lots 1-28, Block 29; Lots 1-28, Block 30; Lots 1-28, Block 31; Lots 1-28, Block 32; Lots 7-10, Block 49; Beach Park Subdivision, Harris County, Texas. Councilmember Zemanek seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Clausen, Zemanek, Engelken, Kaminski, Moser, Leonard, Earp and Martin Nays: None Absent: None Page 3 of 6 April 27, 2015, Council Meeting Minutes Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2015-3575: AN ORDINANCE AMENDING CHAPTER 106 "ZONING" OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE BY CHANGING THE ZONING CLASSIFICATION FROM NEIGHBORHOOD COMMERCIAL DISTRICT(NC)TO MIXED USE (MU), FOR THE"CIRCLE" PROPERTIES ADJACENT TO SYLVAN BEACH PARK AND DESCRIBED AS LOTS 1-28, BLOCK 29; LOTS 1-28, BLOCK 30; LOTS 1-28, BLOCK 31; LOTS 1-28, BLOCK 32; LOTS 7-10, BLOCK 49; BEACH PARK SUBDIVISION, MAKING CERTAIN FINDINGS OF FACT RELATED TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. 7. AUTHORIZATIONS (a) Consider approval or other action of a Resolution denying the rate application proposed by CenterPoint—C. Alexander Councilmember Engelken advised City Council he signed a conflict of interest affidavit on Friday, April 24, 2015 with the City Secretary's Office and will abstain from this item. Councilmember Engelken left the table at 6:36 p.m. City Manager Corby Alexander presented a summary. Councilmember Engelken returned to the table at 6:39 p.m. Councilmember Leonard moved to approve a Resolution denying the rate application proposed by CenterPoint. o C uncilmember Earp seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Clausen, Leonard, Martin, Zemanek, Moser, Kaminski and Earp Nays: None Absent: None Abstain: Councilmember Engelken Prior to council action, Assistant City Attorney Clark Askins read the caption of Resolution 2015-06: A RESOLUTION OF THE CITY OF LA PORTE, TEXAS FINDING THAT CENTERPOINT ENERGY RESOURCES COPR. D/B/A CENTERPOINT ENERGY ENTEX AND CENTERPOINT ENERGY TEXAS GAS' STATEMENT OF INTENT TO INCREASE RATES FILING WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; FINDING THAT MEETING AT WHICH THIS RESOLUTION IS PASSED IN OPEN TO THE PUBLIC AS REQUIRED BY LAW IN COMPLIANCE WITH THE OPEN MEETINGS LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY; AND PROVIDING AN EFFECTIVE DATE. (b) Consider approval or other action authorizing the City Manager to expend City Council contingency with the reconstruction of the La Porte Recreation & Fitness Center due to flooding damage, provide direction on state law exception to bidding procedures, and discuss related matters—C. Alexander City Manager Corby Alexander presented a summary on the flooding of the La Porte Recreation & Fitness Center. Councilmember Leonard asked how memberships will be handled during the construction of the La Porte Recreation & Fitness Center. Mr. Alexander responded there are two options, extend the memberships or prorate the membership back to the members. In addition, Mr. Alexander advised the preference is to extend the memberships. Councilmember Earp asked if there is an estimated cost for the reconstruction. Mr. Alexander responded figures are still being received, but he feel it will be all of the $ 242,355.00 in the contingency line item. Mayor Rigby asked if the City will receive any reimbursement. Mr. Alexander informed a claim has been filed with Texas Municipal League, but the City will have to pay the $25,000.00 Page 4 of 6 April 27, 2015, Council Meeting Minutes deductible. Mayor Rigby commented it will be prudent for the City to obtain additional estimates. Mr. Alexander advised the City will certainly obtain additional estimates. Councilmember Moser asked if the specialty flooring will be installed at a later date. Mr. Alexander responded yes, the quote of$42,028.83 did not included specialty flooring. Councilmember Martin asked if there are any assurances in place to avoid future incidents. Mr. Alexander responded yes, options have been identified and will be in place before the facility re-opens. Councilmember Martin moved to allow Staff to solicit quotes and/or bids in a timely manner and evoke the state law exception to bidding procedures and to authorize the use of contingency funds. Councilmember Kaminski seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Clausen, Leonard, Martin, Zemanek, Moser, Engelken, Kaminski and Earp Nays: None Absent: None 8. REPORTS (a) Receive report on the quarterly Delinquent Tax Report—T. Leach Mayor Rigby asked Council if there were any questions before Ms. Leach provided the quarterly Delinquent Tax Report. There were no questions. Mayor Rigby then asked if there are any objections to the report no longer being presented at City Council meetings as long as it is forwarded to Council on a quarterly basis. There were no Council objections. (b) Receive the 2014 La Porte Police Department Annual Crime and Activity Report— K. Adcox Police Chief Ken Adcox provided the 2014 La Porte Police Department Annual Crime and Activity Report. Councilmember Zemanek questioned where the massage parlor violations fit into the report. Police Chief Ken Adcox responded they are tracked as a penal offense, and he will confirm where to add it in future reports. Councilmember Moser asked if there are resources dedicated to Districts 4 and 5 since the districts rank higher in crime. Mr. Adcox responded, yes additional officers are in the areas and targeted resources are assigned to the districts. Mr. Adcox also added the crime activity in the Districts 4 and 5 are lower than the safest neighborhood in neighboring communities. Councilmember Martin requested the growth in crime rate for District 5 from 2013-2014 and later 2015. Councilmember Martin commented the crime in District 5 is from a small population centered around two apartment complexes on S. Broadway. Councilmember Leonard asked if the hot spot cameras are monitored live. Mr. Adcox responded yes. 9. ADMINISTRATIVE REPORTS There were no additional reports. 10. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies — Councilmembers Martin, Moser, Kaminski, Zemanek, Leonard, Engelken, Earp, Clausen and Mayor Rigby. Page 5 of 6 April 27, 2015, Council Meeting Minutes Councilmembers Martin and Kaminski thanked the volunteers and attendees during the Sylvan Beach Day festivities; Councilmember Engelken wished everyone a safe trip home after the meeting and Mayor Rigby commented on the great turnout for the Sylvan Beach Day festivities and how interesting it was to attend the Official State of Texas held at the San Jacinto Monument. 11. EXECUTIVE SESSION The City reserves the right to meet in closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code, including, but not limited to, the following: Texas Government Code, Section 551.072 — For the purpose of deliberating the purchase, exchange, lease or value of real property: Klein Retreat property and former Happy Barbour property. Texas Government Code, Section 551.071(1)(A) — Pending or Contemplated Litigation: Meet with City Attorney and City Manager to discuss case of Everardo Garza Vs. City of La Porte. City Council recessed the regular Council meeting to convene an executive session at 7:25 p.m. to deliberate the purchase, exchange, lease or value of real property: Klein Retreat property and former Happy Barbour property and discuss the case of Everardo Garza Vs. City of La Porte. 12. RECONVENE into regular session and consider action, if any on item(s) discussed in executive session. Council reconvened into the regular Council meeting at 8:36 p.m. Council directed the Assistant City Attorney to continue defense on behalf of the City. Councilmember Zemanek moved to reject the offer from Galveston Bay Foundation. Councilmember Martin seconded. MOTION PASSED. Ayes: Councilmembers Leonard, Martin, Clausen, Kaminski, Engelken, Zemanek, and Earp Nays: Mayor Rigby and Councilmember Moser Absent: None 13. ADJOURN There being no further business, the meeting adjourned at 8:38 p.m. J14 )h Shahin Harris, Assistant City Secretary Pa7*p o ed on May 11, 2015. M yor ouis Page 6 of 6 April 27, 2015, Council Meeting Minutes