Loading...
HomeMy WebLinkAbout10-06-99 Meeting of the La Porte Development Corporation Minutes Section 2 3 MINUTES OF THE LA PORTE DEVELOPMENT CORPORA nON OCTOBER 6, 1999 1. Call to OrderlIntroductions The meeting was called to order by Jeff Litchfield, Assistant City ManagerlFinance Director, City of La Porte, at 6:30 p.m. Present: Mayor Norman Malone, Jeff Litchfield, Assistant City ManagerlFinance Director, City of La Porte, Ed Matuszak, Chuck Engelken, Bill Love, Peter Griffiths, Jerry Clarke, Pat Muston, and Martha Gillett. Members Absent: Greg Kroll. Others Present: None 2. Oath of Office for Board Members Mayor Malone administered the Oath of Office to board members. 3. Receive Background Report from Treasurer of the events leading to the creation of the City of La Porte Development Corporation Assistant City ManagerlFinance Director Jeff Litchfield serves as Treasurer to the La Porte Development Corporation. Mr. Litchfield provided the board with a report and explained the spreadsheets provided in the agenda packet. Mr. Litchfield informed the group that approximately $900,000 could be expected in sales tax revenues in 1999-2000. 4. Consider approval or other action regarding the adoption of Bylaws for the City of La Porte Development Corporation Treasurer Jeff Litchfield provided summary and explanation of Bylaws. Motion was made by Pat Muston to adopt the Bylaws as presented. Seconded by Chuck Engelken. The motion carried Ayes: Pat Muston, Ed Matuszak, Chuck Engelken, Bill Love, Jerry Clarke and Peter Griffiths. Nays: None Abstain: None 5. Consider appointment of Officers: Motion was made by Jerry Clarke to appoint Pat Muston as President. Seconded by Chuck Engelken. The motion carried unanimously. Ayes: Ed Matuszak, Chuck Engelken, Bill Love, Jerry Clarke, and Peter Griffiths. Nays: None Abstain: Pat Muston 4 Development Board Minutes - 10-6-1999 Page 2 Motion was made by Peter Griffiths to appoint Ed Matuszak as Vice President. Seconded by Chuck Engelken. The motion carried. Ayes: Pat Muston, Chuck Engelken, Bill Love, Jerry Clarke, and Peter Griffiths. Nays: None Abstain: Ed Matuszak 6. Consider Resolution establishing a standard meeting time. There was discussion on meeting dates and times. Be it resolved that the La Porte Development Corporation designates the following meeting dates and time and meetings will be held at a City of La Porte City Hall or other City building: There will be one meeting per quarter (first Wednesday of the quarter at 6:30 P.M.) and an annual meeting in March of each year. The person or persons calling the meeting as outlined in the Bylaws will set special meetings. Motion was made by Chuck Engelken to set the meeting dates as designated bv the members. Seconded by Peter Griffiths. The motion carried unanimously. Ayes: Pat Muston, Ed Matuszak, Chuck Engelken, Bill Love, Jerry Clarke and Peter Griffiths. Nays: None 7. Adjournment There being no further business to come before the Development Corporation, the meeting was duly adjourned at 7:20 p.m. Respectfully submitted, ~tUM~~ Martha A. Gillett City Secretary/La Porte Development Corporation Secretary Passed and approved on this dH ill day of IY\ttr6 U .2000. ston, President 5 Section 3 6 The La Porte City Council appointed Greg Kroll to the Development Corporation Board. In speaking with Mr. Kroll, I found that he works the evening shift and is unable to make any of the meetings. He has asked that he be removed from the Board. We will inform the La Porte City Council that there is an open slot on the Board and ask that they appoint someone to take his place. 7 Section 4 8 The City has hired the firm of Hall/Barnum as Architects for the La Porte Community Library. At the meeting, they will make a presentation on the planned project. Attached is a rendering of the project. 9 O~ Section 5 11 Report on Financial Matters March 15, 2000 OVERVIEW When the concept of a Section 4B Y:z Sales Tax was presented to the voters, it was implied the first two projects would be the La Porte Community Library and the completion of Bay Area Boulevard between Fairmont Parkway and Spencer Highway. At our last meeting, we reported that we expected to sell bonds for those projects in February or March of 2000. At this time, we are ready to proceed with the Library project. However, we are not ready to sell the bonds for the Bay Area Boulevard project because we have not received sufficient engineering and other information from the County to determine the timing and costs of the project. It will probably be another year before we are ready to proceed with the Bay Area Boulevard project. FINANCING MECHANISM Also at the previous meeting, we let you know the financing of the projects would probably involve the City issuing debt and the Development Corporation reimbursing the City for its retirement. This method is still the most favorable. The City of La Porte will issue $3,000,000 in Certificates of Obligation (CO's) at its March 27, 2000 meeting. The CO's will be backed by the Property Tax Base of the City. This is being done for two reasons. First, the City's Tax Base provides a much higher Credit Rating than would be available if the CO's were backed by Sales Tax alone. A higher Credit Rating means a lower interest rate. Second, the City has a large amount of debt capacity available. Since the City will be issuing the debt, the Development Corporation will be asked to reimburse or repay the City for the cost of the debt. We will accomplish this by entering into a Sales and Use Tax Retention Agreement between the two entities. CURRENT AND PROJECTED FINANCIAL STATUS The primary revenue source for the Development Corporation is the Sales Tax. On the next page, you will find a graph that shows the revenues for the first six months of this fiscal year. The following page shows the projection and the actual amounts collected. As you can see, we are within 1 percent of our original projection. The next two pages show two different methods of financing future projects. Both show the current issue of $3 million. Method 1 shows that future projects would be completed with a bond issue of $4 million (Bay Area) in March 2001 and a $5 million issue in March 2002. If these two events transpire, then it would be about 2009 before addition debt could be issued. Method 2 shows the $4 million issue (Bay Area) in March 2001 but after that, projects would be funded from existing cash at a rate of $400,000 per year and then increasing to $500,000 per year in fiscal year 2005-2006. With either method, the Development Corporation should enjoy good financial health. CONCLUSION The Development Corporation has sufficient financial capacity to enter into an agreement to repay the City of La Porte for the $3 million in bonds they sold to build the La Porte Library. 12 ..... co ~ .0 CD LL tIJ G) :I C G) c: > CO G) """) ro 0:: ~ :J >< - U c CO 0 <( I- ~ 0 tIJ .... "0 ~ 0 CD ~ - CO c 0 CD U) w .0' l:Q - ..... <C a.. 'IlIt 0 II c CD 0 0 :; 0 G) U) G) > :; CO :I E > :I 0 (.) z u o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a. a. 0 a. 0 q 0 a' 0 0 0 0 0 a" 0 ci L() 0 L() 0 L() 0 L() 0 L() "<t "<t ('t) ('t) N N ~ ~ SJBIIOa 13 Projection of Sales Tax Revenues Collected from the new Section 48 1/2 Cent Sales Tax Projected Actual Variance Projected Actual FY 99-00 FY 99-00 FY 99-00 Cumulative Cumulative October 55,800 53,865 (1,935) 55,800 53,865 November 85,500 86,462 962 141,300 140,327 December 72,000 74,981 2,981 213,300 215,308 January 49,500 37,601 (11,899) 262,800 252,909 February 97,470 95,607 (1,863) 360,270 348,516 March 62,810 70,694 7,884 423,080 419,210 April 65,530 May 102,240 June 68,040 July 71,010 August 98,370 September 71,730 Totals 900,000 419,210 (3,870) 14 c o +3 e o ~ o o ... c CI) .t1 E >< C) Q.l1IC1) .s:! I- 'e- =~~ll. >< CI) _ ... C1)Cl1I,E I-CI)CI)... .t::'C.c CI) 0 CI) CI) "Sll.oC ll.,j~~ 11I CI) ..... Ul ..J.cal.!! 'O:"lt ~,Eg;; CJC+30 OC).c +3C1)... C) CI) CI) CI) ::iE 'e- ll. CI) C) C 11I 0:: C) C o ..J "0 Q)O - I (JO '~8 a:N "00 Q)O 1)' .!2. m 00> .... ..... a. iiiO> ::Jcr ~~ 0> ..... "0 CO Q)O ~~ '0'8 a:N "0...... Q)O 1)<6 '~8 a:N "0 CO Q)O - I (Jill '~8 a:N "0 III Q)O ~~ .~o e~ a. "O'<t Q)O ~M '0'8 a:N "0 M Q)O ~N '0'8 a:N "ON Q)O - , 0..... '~8 a:N B c: III iii CO S '0.. III U Cl c: :g ~ Cl Q) CO III CO ~ ..... ..... N CO o CO ......' '<t N co '<t M ri '<t M III o ...... cs5 0> '<t o CO CO .0 o ...... CO '<t N ai CO 0> M M <C!. ..... CO CO ...... ..... CO .0 ...... CO co o ...... Ill' '<t o 160;~ Ill......M cs5.oC'i 0> 0 q ....... ...........CO .....co...... CO..... 0> ai.o"<i CO ...... a, a, '<to>M NMCO ......0...... rics5ai ~ ~ ......'<tN CO......'<t NMCO CO' ai cs5 ..... N q q NIllCO ~;:~ M'C'i.o 0>.....0 0> a, N.....M 0.......... NN'<t air'cs5 CO..... CO 0> 0> MCOCO CO........... III CO..... .oriai '<tNCO 0> 0> OMM 000 III III 0 ~~; 0> 0> 0.......... o COCO OMM ci~......" aNN 0> 0> '<tNCO CONO '<tN...... o 0 III III in Q) ::J >< c: III g?1- Q) III ((Q) lIliii ::Jcn a: Q) ::J c: Q) > Q) (( Ui- Q)S .... 0 21- .= OOMOCO..... o .....IllMO o CON'<t1ll .0 r'.oaics5 III III Ill...... NM'<tq OOCOOM..... o MIll.....O o '<t......coo Ill' cs5 cs5 C'i ...: coco........... NM'<t....., OOMOCO..... o CO III coo o ON.....1ll .0 .oair'.o ............co'<t NM'<t..... OOCOOM..... o COIllCOO o CO......IllO .0 riai '0 COCOOCO NMIll....., OOMOCO..... o .....IllMO o MNO>Ill .0 C'i"':.o"<i 0)0,....,.... N'<tIllN,. OOCOOM..... o MIll.....O o O>......MO Ill' 0 C'i 0 ai O.....M'<t M'<tIllN,. OOMOOM o COIllIllCO o IllN......1ll .0 ai"<iriC'i ON'<tCO M'<t.....CO OOCOOOCO oocoo co 00......0 ,.... .ooai.o co 0............ ('l') IllM..... 0> 0000 o III o N .0 cs5 co 000000 o 0 o q .0 III O......N", 000Q) I I I (IJ en o)o,....c Q) O>oo~ ~ ~ .S: .S: .S: a:l a.Q) .2 III Q) Q) Q) - xmo='~::Jco w'-Q)"'~~o Q) '0' ,!!1 ,- .- I- ~8'a:~~~ Q) ...J 00 III N, 0; M M co. ..... co co ...... ex; .0 ...... co CO o ...... .0 '<t 8 c: III iii co Cl c: :0 c: w CO M '<t r' M N III co ~ ..... ..... N co o co r' '<t N CO ~ ri '<t M III o ...... cs5 0> '<t o co co .0 o ...... CO '<t N ai co 0> ni g? .... Q) a. *' III N co Q) .c 88o~ c:000 I1lNNN .~~~~~ >< ~~ ~ ~ ~~c:c:c: ~ g? .~ .~ .~ iiiI1lB(J~ cngggo 'E :>l::oO B III "~ .~ .~ ~ c:c:c: .....~~~~ Q)~EEE =....('l')VLO o:ll~~~ ~Q)OOO ~.cQ)Q)Q) IIlO;;::J:J:J .~ e;, ~ .!8 .~ .~ 'E.roVJ_-- E:J~{l{l{l :J2:2"O"C"C ~<.=<<< -t:i Q) 1:: o a. a. ::J III Q) .c "C 'S o (J Q) ::J III ,!!1 :E Q) "C a; .c: '0 c: III ~ .E Q) .c 0> o o N '5 o .c III Q) .c '~ ai S "C (5 .c: III c: .2 C. E :J III III III Q) III Q) ::; -- -#. III ...... .n -- o Q) Ii! Ui ~ Q) .S Q) Cl III a; > III c: III "C c: III E $ Co Q) >- o N III c: o "C Q) III III .c Q) Co III Q) :J III .!!1 :E Q) Cl ~ III B :::i ~ c: ::J E E o u Q) ::; .... .E "C Q) Q3 ~ S .!!1 o o o N .c: u Co :::!: .S: Q) ::J III .!!1 c: ~ 'E M ~ Q) .c: I- c o 'iji c: 2 >< Q) 'E III > Q) 'S o co III ~ < >- III co Q) ::; .... .E Q) .c >- :0 III .c o a. "C Q) l;: ~ Q) :2 c: Q) Q) .c '0 c: Q) > III .c: N o o N ~ III ::J B Q) l.L. .S: Q) ::J III .!!1 .c: ~ 'E III ~ Q) ::; "C c: III .~ ..... o o N 6 o o N >- l.L. .S: o o o o o III ~ Q) ::; .... .E III U Q) '0' ct ..... o o N ~ III ::J B Q) l.L. .S: Q) ::J III .!!1 c: ~ "E ~ ~ Q) .c: I- 15 c o ;; l! o Q, ... o o ... C Gl E )( Q,1lI .21- Ul Gl Ul III > Gl )(Gl_ Gl C III I-GlCl) -t::C Gl 0 ~1l.8 ll.j!:! jGl.... .ccaN 'O:"It'tJ ~.E5~ oc~Gl oGl:::5 ~CI) Gl .e- ll. Gl C) C III 0::: C) c o ..J o C) ::l o >- Ul III >. III ll. '"0 Q)O 0' Q)8 .e-~ a. '"00 Q)O tsdl .~8l .... .... a. - 0) III 0) :J I .....CO :to) 0) '"0 CO Q)O ..... I UI'- .~8 a:N '"01'- Q)O ~cb .0'8 a:N '"0<0 ~9 .~~ 00 a:N '"OLO Q)O "2~ .0'8 a:N '"Ooot Q)O ..... I UM Q)o .e-~ a. '"OM ~9 Q)~ .-0 eN a. '"ON Q)O ts~ .~8 a:N ~ C III Iii 10 ]j .Ci.. III (.J 0) C :g o ~ 0) Q) 10 co M I'- cO I'- M 16co~ LOCOoot cOa:i.n 0) 0 O. 'r"'"". o N 0) .n M oot 1'-0)<0 ....COO co.... 0 aiaiai <0 I'- O. O. I'- I'- co ai M LO ootN<O NMLO I'-<OM <;j~i O. q o co co cO co LO I'-COLO <O<OM N....oot r:ti ri T-- .... .... M q q I'- 0) <0 ,..: I'- <0 Noot<O M....oot ootMI'- M.-<i"': 0)....0 0) O. oot LO <0 ci .... co NO).... ONM NLOI'- aicO.n <0.... CO 0) 0) M M .... -<i co 0> MNLO <OI'-M LOI'-M .nai.n -.r....<o 0) 0) I'- .... co .n I'- co OMM 000 LOOLO N-<icO NNoot 0) 0) <0 o I'- .n oot 0........ 0<0<0 OMM o. ~ y-- ONN 0) 0) o ootN<O CONO ootNI'- ci ci LO LO Q) :;] en C Q) Q) :;] > C >< Q) ~~ti~ Q)U1Q).l!! 0::: Q) .... 0 U11ii.s!1- :;](1)': a: OMOOM O....LOO<O OCONOO .n 1'-. .n ci a:i LOLOO.... N M LO ..... OCOOOCO OMLOOCO Oootl'-O..- .ncOcOcico <O<OOM N M LO ..... OMOOM O<OLOO..- OONOM .n.na:icia:i I'-I'-OLO N M LO ..-. OCOOOCO OCOLOOM O<OI'-Ooot .n M ai ci co. CO COOl'- NMootq OMOOM O....LOO<O OMNOLO .n N ..-. ci a:i 0)000) NootootO_ OCOOOCO OMLOOCO 00>1'-0<0 LO. ci N ci a:i 0.....0...... M oot oot ...._ OMOOM O<OLOO..- OLONOCO .nai-<icia:i ONOM M oot -.r ..... OCOOOCO OCOOOCO OT'""OOT""" .na:i.ncia:i ......,...0("') M....-.rCO 000 OLO ON LO. cO co 00000 o 0 o 0 LO- .n '"0 o .r; a; 8o~ 00" mOO Q) 0) 0 0).0 00 00 C C :J Q) cc.-.-g,o 2tgQ)Q) - )(llIfJfJUI.l!! w....U1U11l10 Q) .- .- >- I- ~8"~~~ Q) ...J 00 LO N. 0; 0) ..- .... -<i <0 M co M I'- cO I'- M o N 0) .n M oot I'- I'- co ai M LO o co co cO co LO I'- 0) <0 ,..: I'- <0 oot LO <0 ci co (() .... III Q) >- .!: o o o ci o LO ~ .s Q) 00 III ~ U .!: '"0 c III ro Q) >- M M .... ;;5- 0) I'- .... co .n I'- co ni ~ Qj Qj a. a. 0 (ft. 0 LO 0 N g iiiQ)Ooot u8~ .2llijNIlI --.r; ~~~lij ><Q)1lI0) III O)~ Q) I- ~ C .0'"0 00 Q) .- - ~~B6 III U U ~BO.l!l c::~= ~ ~ ~ :: .0' ~Ciiga. 't-"'C~o ~~E:; _IlIMQ) OQ)~Q) .r;Q)OO) j~Q)-g ~e~fJ.o g ~ ti .!!l -E ~~~{l6 :JE.s!'"OE ~<.:<<( <0 o I'- .n oot ~ C III Iii 10 0) c '6 c w 16 Section 6 17 RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE CITY OF LA PORTE WHEREAS, the Board of Directors of the City of La Porte Development Corporation (the "Corporation") finds that the new La Porte Community Library is a project the Corporation should support; and WHEREAS, the City of La Porte is in the process of issuing its "Certificates of Obligation, Series 2000" (the "Certificates") for such purpose and pledging ad valorem taxes to the payment thereof to obtain the best possible credit rating on the Certificates; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LA PORTE DEVELOPMENT CORPORATION that the Sales and Use Tax Retention Agreement substantially in the form attached hereto as Exhibit "A" is hereby approved and the officers of the Corporation are authorized to execute and deliver the Agreement. PASSED, APPROVED, AND ADOPTED this J I 1J-1 D () ( 1Y1 ()J}JtPt. J{ JffJ; Secretary, Board of Directors RESOLUTION AUTHORIZING SALES AND USE TAX RETETION AGREEMENT WITH THE CITY OF LA PORTE WHEREAS, the Board of Directors of the City of La Porte Development Corporation (the "Corporation") finds that the new La Porte Community Library is a project the Corporation should support; and WHEREAS, the City of La Porte is in the process of issuing its "Certificates of Obligation, Series 2000" (the "Certificates") for such purpose and pledging ad valorem taxes to the payment thereof to obtain the best possible credit rating on the Certificates; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LA PORTE DEVELOPMENT CORPORATION that the Sales and Use Tax Retention Agreement substantially in the form attached hereto as Exhibit "A" is hereby approved and the officers of the Corporation are authorized to execute and deliver the Agreement. PASSED, APPROVED, AND ADOPTED this 3 J JJ-I D i) / , 18 EXlllBIT A SALES AND USE TAX RETENTION AGREEMENT This SALES AND USE TAX RETENTION AGREEMENT (the "Agreement") is dated as of March 15, 2000 and entered into between the CITY OF LA PORTE, TEXAS (the "City") and the CITY OF LA PORTE DEVELOPMENT CORPORATION, a nonprofit corporation created by the City pursuant to Section 4B, Article 5190.6, Vernon's Texas Civil Statutes, as amended (the "Act") (the "Corporation"). WITNESSETH: WHEREAS, the City has levied a sales and use tax for the benefit of the Corporation as authorized by Section 4B(d) of the Act, and; WHEREAS, the City plans to issue its "City of La Porte, Texas Certificates of Obligation, Series 2000" (the "Certificates") in part to fmance the improvements described in Exhibit "A" attached hereto (the "Project"); and WHEREAS, the Project is a "Project" as defined in Section 4B of the Act and as such, is a Project for which the Corporation may expend sales and use tax revenues; and WHEREAS, the issuance of the Certificates by the City will result, generally, in a lower cost of financing for the Project over the costs the Corporation might incur in financing the Project; and WHEREAS, the Corporation wishes to finance the Project at the lowest possible cost and, therefore, intends that the City retain a portion of the sales and use tax receipts from the sales and use tax levied by the City for the benefit of the Corporation to pledge to the Certificates and for use in making payments of principal of and interest on the Certificates when due, when redeemed prior to maturity, or when defeased in accordance with the provisions of the City's ordinance authorizing the sale of the Certificates (the "Ordinance"); NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,.the receipt and sufficiency of which are hereby acknowledged, the City and the Corporation hereby agree as follows: Section 1. Incorporation of the Preambles. The preambles to this Agreement are incorporated by reference and are hereby included in this Agreement as though set forth in full at this place. Section 2. Incorporation of the Ordinance. The Ordinance is incorporated by reference and is hereby included in this Agreement as though set forth in full at this place. Section 3. Retention of Sales and Use Tax Recei ts b the Ci . (a) The Board of Directors of the Corpor~tion hereby agrees that the sales and use t ~ied by the City for the benefit of the Corporation,.SIt an amount necessary to pay the Certificates. Such portion of the sales and use tax revenues is to be irrevocably retained by the City from the effective date of this Agreement until the Certificates are paid in full, whether at maturity or redemption prior to maturity, or until sufficient money and/or securities have been set aside in an irrevocable escrow fund for payment of the Certificates in full, all in accordance with the Ordinance; provided, however, if the City issues refunding bonds or certificates A-I 19 to redeem the Certificates prior to maturity or to defease the Certificates, as permitted in accordance with the Ordinance, such sales and use tax revenues are to be continued to be retained by the City to pledge to and pay in full the refunding bonds or certificates. (b) At the City's sole option, any such sales and use tax revenues retained by the City for payment of the Certificates which are not needed for payment of the Certificates in any given fiscal year of the City may be delivered to the Corporation for use pursuant to the Act. (c) Once the Certificates are defeased or paid in full and all bonds or certificates issued to refund the Certificates are paid in full, the City shall, as soon as possible, notify the Corporation of such fact, and commencing on the date of the first distribution of such sales and use tax revenues to the City from the Texas Comptroller of Public Accounts after such notification, the City shall deliver all of the proceeds of the sales and use tax levied for the benefit of the Corporation to the Corporation. Section 4. Notices. All notices required hereunder shall be in writing and delivered by certified mail, return receipt requested, by facsimile, by overnight mail, or by personal delivery, and addressed as follows: If to the City: City of La Porte, Texas Attention: City Manager 604 West Fairmont La Porte, TX 77571 Phone: (281) 471-5020 Fax: (281) 471-7168 If to the Corporation: City of La Porte Development Corporation Attention: President 604 West Fairmont La Porte, TX 77571 Phone: (281) 471-5020 Fax: (281) 471-7168 Any party listed above may designate any additional or different address or facsimile number to which communications under this Agreement shall be delivered by giving at least five days advance notice thereof to the affected parties. Section 5. Amendment. This Agreement may be amended by execution of an instrument by both parties hereto; provided, however, this Agreement may not be amended to halt or limit the retention of sales and use tax revenues collected by the City as described in Section 3 hereof. Section 6. Bindinf! Effect. This Agreement shall bind and inure to the benefit of the successors of the parties hereto. Section 7. Applicable Law. This Agreement shall be construed and governed in accordance with the laws of the State of Texas. Section 8. Severabilitv. Any provision of this Agreement found to be prohibited by law shall be ineffective only to the extent of such prohibition and shall not invalidate the remainder of this Agreement. A-2 20 Section 9. Jj:xecution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. Section 10. Com{Jlete Agreement. This Agreement supersedes and takes the place of any and all previous agreements entered into among the parties hereto with respect to the subject matter hereof. EXECUTED AS OF MARCH 15,2000.. CITY OF LA PORTE, TEXAS By4:~ ayor . ATTEST: By:LfJ]~(j. /;tud! City Secretary . (SEAL} CITY OF LA PORTE DEVELOPMENT CORPORATION . ~. By:AM President, Board of Directors AITEST: ByWf!dHi]A. ;j J(.dt/;t Secretary, Board of Directors EXECUTION PAGE OF SALES AND USE TAX RETENTION AGREEMENT 21 SALES AND USE TAX RETENTION AGREEMENT This SALES AND USE TAX RETENTION AGREEMENT (the "Agreement") is dated as of March 15,2000 and entered into between the CITY OF LA PORTE, TEXAS (the "City") and the CITY OF LA PORTE DEVELOPMENT CORPORATION. a nonprofit corporation created by the City pursuant to Section 4B, Article 5190.6, Vernon's Texas Civil Statutes. as amended (the "Act") (the "Corporation"). WITNESSETH: WHEREAS, the City has levied a sales and use tax for the benefit of the Corporation as authorized by Section 4B( d) of the Act, and; WHEREAS, the City plans to issue its "City of La Porte, Texas Certificates of Obligation, Series 2000" (the "Certificates") in part to finance the improvements described in Exhibit "A" attached hereto (the "Project'); and WHEREAS, the Project is a "Project" as defined in Section 4B of the Act and as such, is a Project for which the Corporation may expend sales and use tax revenues; and WHEREAS, the issuance of the Certificates by the City will result, generaHy, in a lower cost of financing for the Project over the costs the Corporation might incur in financing the Project; and WHEREAS, the Corporation wishes to finance the Project at the lowest possible cost and, therefore, intends that the City retain a portion of the sales and use tax receipts from the sales and use tax levied by the City for the benefit of the Corporation to pledge to the Certificates and for use in making payments of principal of and interest on the Certificates when due, when redeemed prior to maturity, or when defeased in accordance with the provisions of the City's ordinance authorizing the sale of the Certificates (the "Ordinance"); NOW, TIIEREFORE, 10 consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Corporation hereby agree as follows: Section 1. Incorporation of the Preambles. The preambles to this Agreement are incorporated by reference and are hereby included in this Agreement as though set forth in full at this place. Section 2. Incorporation of the Ordinance. The Ordinance is incorporated by reference and is hereby included in this Agreement as though set forth in full at this place., d 1 kLC' __" \,ce" . Section 3. Retention of Sales and Use Tax Receipts bv"the City. (a) The Board of Directors of the Corporation hereby agrees that the sales and use tax~ levied by the City for the benefit of the Corporation, in an amount necessary to pay the CertificateS. Such portion of the sales and use tax revenues is to be irrevocably retained by the City from the effective date of this Agreement until the Certificates are paid in full, whether at maturity or redemption prior to maturity, or until sufficient money and/or securities have been set aside in an irrevocable escrow fund for payment of the Certificates in full, all in accordance with the Ordinance; provided, however, if the City issues refunding bonds or certificates to redeem the Certificates prior to maturity or to defease the Certificates, as permitted in accordance with the Ordinance, such sales and use tax revenues are to be continued to be retained by the City to pledge to and pay in full the refunding bonds or certificates. (b) At the City's sole option, any such sales and use tax revenues retained by the City for payment of the Certificates which are not needed for payment of the Certificates in any given fiscal year of the City may be delivered to the Corporation for use pursuant to the Act. (c) Once the Certificates are defeased or paid in full and all bonds or certificates issued to refund the Certificates are paid in full, the City shall, as soon as possible, notify the Corporation of such fact, and commencing on the date of the first distribution of such sales and use tax revenues to the City from the Texas Comptroller of Public Accounts after such notification, the City shall deliver all of the proceeds of the sales and use tax levied for the benefit of the Corporation to the Corporation. Section 4. Notices. All notices required hereunder shall be in writing and delivered by certified mail, return receipt requested, by facsimile, by overnight mail, or by personal delivery, and addressed as follows: Ifto the City: City of La Porte, Texas Attention: City Manager 604 West Fairmont La Porte, TX 77571 Phone: (281) 471-5020 Fax: (281) 471-7168 If to the Corporation: City of La Porte Development Corporation Attention: President 604 West Fairmont La Porte, TX 77571 Phone: (281) 471-5020 Fax: (281) 471-7168 Any party listed above may designate any additional or different address or facsimile number to which communications under this Agreement shall be delivered by giving at least five days advance notice thereof to the affected parties. Section 5. Amendment. This Agreement may be amended by execution of an instrument by both parties hereto; provided, however, this Agreement may not be amended to halt or limit the retention of sales and use tax revenues collected by the City as described in Section 3 hereof. Section 6. Bindine: Effect. This Agreement shall bind and inure to the benefit of the successors of the parties hereto. Section 7. Applicable Law. This Agreement shall be construed and governed in accordance with the laws ofthe State of Texas. Section 8. Severabilitv. Any provision of this Agreement found to be prohibited by law shall be ineffective only to the extent of such prohibition and shall not invalidate the remainder ofthis Agreement. 2 Section 9. Execution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument. Section 10. Complete Al!reement. This Agreement supersedes and takes the place of any and all previous agreements entered into among the parties hereto with respect to the subject matter hereof. EXECUTED AS OF MARCH 15,2000. CITY OF LA PORTE, TEXAS By~.t'?h{/~ ayor J ATTEST: (SEAL) CITY OF LA PORTE DEVELOPMENT CORPORATION BY:~~ President, Board of Directors ATTEST: EXECUTION PAGE OF SALES AND USE TAX RETENTION AGREEMENT EXHIBIT "A" The Project consists of constructing and equipping of the La Porte Community Library and the payment of contractual obligations for professional services in connection therewith (to wit: architectural, engineering, financial advisory, and legal). 22 EXHIBIT "A" The Project consists of constructing and equipping of the La Porte Community Library and the payment of contractual obligations for professional services in connection therewith (to wit: architectural, engineering, financial advisory, and legal). CERTIFICATE FOR RESOLUTION We, the undersigned President and Secretary of the City of La Porte Development Corporation (the "Corporation"), hereby certify as follows: 1. The Board of Directors of the Corporation (the "Board") convened in regular session, open to the public, on March 22, 2000, at the meeting place designated in the notice (the "Meeting"), and the roll was called of the members, to wit: Chuck Engelken, Jr., Jerry Clarke, Peter E. Griffiths, William S. Love, Jr., Edward Matuszak, and Patricia Muston. All members of the Board were present, except , constituting a quorum. Whereupon among other business, the following was transacted at the Meeting: a written resolution entitled RESOLUTION AUTHORIZING SALES AND USE TAX RETENTION AGREEMENT WITH THE CITY OF LA PORTE (the "Resolution") was duly introduced for the consideration of the Board and read in full. It was then duly moved and seconded that the Resolution be finally passed and adopted; and after due discussion, such motion, carrying with it the adoption of the Resolution prevailed and carried by the following vote: YES:-9-- NOES:~ ABSTENTIONS:_. 2. A true, full, and correct copy of the Resolution adopted at the Meeting is attached to and follows this Certificate; the Resolution has been duly recorded in the Board's minutes of the Meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Board's minutes of the Meeting pertaining to the adoption of the Resolution; the persons named in the above and foregoing paragraph are duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the Meeting, and that the Resolution would be introduced and considered for adoption at the Meeting and each of such officers and members consented, in advance, to the holding of the Meeting for such purpose; and the Meeting was open to the public, and public notice of the time, place, and purpose of the Meeting was given, all as required by Chapter 551, Texas Government Code, as amended. SIGNED AND SEALED THIS March 22, 2000. resident, Board 0 Directors City of La Porte Development Corporation (SEAL) ::-: ....;:..~... CITY OF LA PORTE TRAVEL AUTHORIZATION AND EXPENSE POLICY CITY OF LA PORTE TRAVEL AUTHORIZATION AND EXPENSE POLICY EFFECTIVE MARCH 1, 1998 SECTION I: SECTION ll: SECTION ill: SECTION IV: ". SECTION V: TABLE OF CONTENTS INTRODUCTION PAGE · Purpose ... ...... ............................... ............................................................... 1 · Scope.... ...................................................................................................... 1 · Authorization........................... ................................................................... 1 APPROVAL GUIDELINES · Meals....... ..............................................:..................................................... 2 · Transportation............................................................................................. 3 · Lod' 5 gII1g...................................................................................................... . · Registration................................................... ..............................................5 · Phone Calls ....................................................... ......... ............ .......... ...........5 · Non-Allowable Expenses ...................... ........ ........ ........ .............................. 5 VOLUN'fEER FIREFIGHTERS.................................................................. 6 PAYMENTS · Advances 7 ..................................................................................................... · Reimbursements 8 .......................................................................................... APPENDICES · IRS Per Diem Rate 9 ...................................................................................... · IRS Mileage Rate........................................................................................ 9 · Federal Per Diem Rate Schedule 10 ............................................................... · Frequently Asked Questions..................................................................... 11 · Travel Request Form ...... ................ ....... ............ .......... .................... ......... 13 · Travel Expense Form ...... ................ ............ .................................... .......... 14 SECTION I: INTRODUCTION PURPOSE OF THE POLICY In order to protect the interest of the City and to ensure like and consistent treatment for all, a well- defined Travel Policy is needed. Uniform policies are necessary to govern expense allowances for employees who travel on official City business. ' SCOPE This policy is applicable to all individuals who travel on officiai City business or to promote the interests of the City. The primary responsibility for authorizing travel and other business related expenses and for enforcement of the particulars of this policy rests with the Department Directors. The Department Director is also responsible for ensuring that all requests for, and approval of: activities requiring travel are official City business relating to the duties and responsibilities of the employee making the request. AUTHORIZATION All travel at the expense of the City shall be made only upon authorization and approval of the Department Director or his designee. Before making a trip, the City employee must submit a Travel Request Form on which the nature of the trip, destination, times and dates of the beginning and end of official,leave and estimates of the cost must be stated. All requests for employee travel should be budgeted and must be approved in advance by their Division Manager. All requests for Out-of-State Travel or any unbudgeted trips for any City employee must be approved by the City Manager. 1 SECTION II: APPROVAL GUIDELINES Requests of employees for attendance and travel to out-of-town business-related meetings and events which require payment for registration, materials, meals, etc., and/or overnight stay must be approved in advance according to the following guidelines. Before making a trip, the employee must submit a Travel Request Form on which the nature (purpose) of the trip, destination, and dates of travel as well as estimate of cost must be stated. The Travel Request will also be the official authorization for Payroll Deduction of any outstanding Advance with an unsubmitted Expense Report. The following list of expense classifications is for information and guidance in determining which expenses are appropriate and reasonable when traveling on City business. The list is intended as a guide and is not necessarily all-inclusive. Discretion remains with the City Manager or his designee in approving travel expenses to provide for unusual circumstances. Items specifically prohibited include the purchase of personal items and alcoholic beverages. Prohibited also are the expenses of the employee's family who accompany him/her on a trip. The expense report must be prepared to reflect only those expenses incurred by the employee. Employees are expected to exercise good judgment regarding travel expenses and have proper regard for economy in conducting business away from La Porte. MEALS For those employees below the Executive Level, as well as all Boards and Commissions traveling on official City business, a "per diem allowance" is in effect for meals. For the purpose of travel, Executive Level is defined by the City Manager. A "per diem allowance" is a payment made for meals and incidental expenses based on the locality of travel. The daily allowance paid is based on the amount the IRS approves each year as a tax-free allowance for travel. The IRS updates these allowances on a yearly basis and the Finance Department will provide new rates to each department as soon as they are available. "Incidental expenses" include, but are not limited to: fees and tips for services, such as waiters and baggage handlers. Employees are required to adhere to the per diem limit which includes tips. When using this flat rate for meals purchased while traveling, employees will not need to return meal receipts to the Finance Department. For partial days away from home, the federal per diem allowance must be prorated. Under IRS regulations one-third of the applicable rate is used for each meal of the day during which the employee is traveling away from home. To qualifY for a full day per diem, employees must leave their residence as established by IRS policies. 2 Those individuals at the Executive Level are allowed to choose between the Per Diem Allowance and the reimbursing method for meals. If the reimbursing method is selected, meals will be reimbursed at actual costs. No reimbursement will be made for the cost of alcoholic beverages. Tips and/or gratuity should be limited to 15% of the total food bill. Receipts are required. TRANSPORTATION Transportation to the conference or meeting should be the least expensive mode to reduce City expenditures. A. AIR TRAVEL: Air travel is usually more economical in time and money when making a long trip. The least expensive air fare (advance purchase, non-refundable tickets) will be considered standard air travel. If advance purchase, non-refundable tickets are not available, other classes of air fare may be used with prior Department Director approval. If the employee pays for the tickets, a receipt must be obtained and submitted with the Travel Expense Report. When traveling out of state, many times the lowest airfare may be obtained by the employee spending additional time at their destination than required for business. if this occurs, consideration will be given to the rate least expensive to the City. Example: An employee is to attend a seminar in New York. The seminar is scheduled for Wednesday, Thursday and half a day Friday. Airfare to arrive in New York on Tuesday and leave New York on Friday is $950. Airfare to arrive in New York on Tuesday and leave New York on Sunday is $650. Hotel rooms in New York are $100 per night. Since the cost to stay until Sunday ($850, $650 airfare plus two extra nights at $100 each) is cheaper than coming back on Friday ($950), the employee may stay the extra time if they so desire. Any other costs (meals, phone calls) will be the responsibility of the employee. The City's liability for the employee ceases when they could have reasonably returned to the City. B. CAR RENTAL: Car rentals are the most expensive mode of transportation; therefore, local transportation such as taxis, shuttles, etc. should be utilized whenever possible. If a car is rented, City employees are covered under the City's insurance; consequently, all optional insurance should be declined. The employee will rent the most economical car available that will satisfactorily meet their needs. If shuttles are available from the airport to the hotel and/or the hotel to the conference, a car rental will be deemed unnecessary, unless approved in advance by the Department Director. Receipts are required. 3 c. PRIVATE AUTOMOBILE: Personal automobiles may be used for official out-of- town travel if this mode of travel is determined to be the best use of employee time and lowest cost. Employees should ensure that they have adequate Automobile Insurance as the City will not be responsible for costs incurred in the event of an accident. The standard business mileage rate (set by the IRS at the beginning of each new year) will be used to determine the mileage reimbursement cost. NOTE: The cost of private owned car usage cannot exceed the lowest applicable round trip airfare of the trip. D. CITY AUTOMOBILE: Travel in City vehicles may be approved when circumstances warrant. When such travel is approved, employees will be reimbursed, at cost, for gasoline purchases and related routine maintenance, such as oil. If the city automobile breaks down on an out-of-town trip the following guidelines should be adhered to for repair of the vehicle: 1. Inside a 100 mile radius from the City of La Porte the employee is required to contact his supervisor for instructions on the repairs. If after hours, or the Supervisor is not available, contact the Stand-by Mechanic through the City of La Porte Police Department. 2. Outside the 100 mile radius the employee must obtain a written quote before authorizing any repairs. A towing fee may not exceed $100.00. Emergency repairs may not exceed $150.00. If repairs or towing exceed the maximum allowed the employee must contact the City of La Porte for instructions. If after hours, contact the Stand-By Mechanic, through the City of La Porte Police Department. If alternative transportation is required, reasonable reimbursement will be authorized on an individual basis. Receipts are required. E. TAXICAB AND SHUITLES: Taxicab and shuttle expenses will be reimbursed at cost. Receipts are required. F. PARKING AND/OR CAR STORAGE: Parking will be paid for both private and City-owned vehicles. Receipts are required. G. TOLL FEES: All toll fees will be reimbursed. Receipts are required. 4 LODGING The cost oflodging will be reimbursed by the City. The City will reimburse only for single room rates (unless two employees share a room). The single room rate must be indicated on the bill for reimbursement. City employees may be accompanied by their spouse or family while on travel status. However, the employee will be expected to pay all expenses incurred by the spouse and family, including the incremental difference charged for a hotel accommodation for two or more persons. If the conference has reselVed a room block for attendees at a lower price and time constraints allow, employees are required to participate to reduce costs. An itemized hotel bill is required, not just a cash receipt. Local governments and their employees !!!!!n pay state and local hotel taxes. Tips are allocated in the daily per diem rate, and cannot be listed separately on the Travel Form. Expenses not covered: Movies or alcoholic beverages are items that are solely for the employee's pleasure and are not allowable expenses. REGISTRA nON The fee for registration for all out-of-town conferences, workshops and conventions will be paid by the City. If the registration is not prepaid and the employee is receiving the registration amount on the travel advance, a receipt is required to be turned in to the City. PHONE CALLS All business calls are reimbursable (documentation must be provided). The City will reimburse employees for one personal call home per day up to a maximum of 10 minutes, but for not more than $5.00 (excluding Hotel Surcharges). NON-ALLOWABLE EXPENSES All employee time and costs (other than pre-approved airfare and lodging) incurred prior to and after the duration of official City business activities will not be reimbursed by the City nor allowed as City business time or expense. 5 SECTION III: VOLUNTEER FIRE FIGHTERS Out-of-town business expenses incurred by volunteer fire fighters are allowed only if they are required as part of the incurring person's job responsibility, are approved in advance and are subject to the availability of funds. Volunteer fire fighters shall abide by procedures established by the Fire Department of a flat rate for lodging and meals and are not required to return any receipts to the City of La Porte. This is primarily for the Texas A&M Fire Training School that is held the last week of July each year. Currently, volunteers receive an allottment of$160.00 for meals for this event. 6 SECTION IV: PAYMENTS ADVANCES The Travel Request Form must be completed and submitted to the Finance Department with documentation attached. Documentation would normally include a copy of the registration form which includes the dates of the trip, costs, location, times, etc. Employees requesting advances should always remember to submit their requests well in advance of their departure date in order to ensure that the Travel Request has had time to clear all of the necessary reVIews. Advancing money does not constitute approval for the expenditures of the entire amount advanced. Out-of-state travel requires approval by the City Manager's Office. A written request for pennission along with justification to travel out of state must be submitted to the City Manager along with a conference description. NOTE: Disregarding any of the above steps could delay processing of the travel request. Discretion remains with the City Manager, or his designee, in approving travel expenses to provide for unusual circumstances. 7 REIMBURSEMENTS To be reimbursed for travel expenditures, the employee must complete the travel expense form, include all original receipts, and submit it to the Finance Department as soon as possible; but in no event later than five (5) working days of return from travel. No reimbursement will be made and the travel account will not be closed until the Travel Expense Report has been approved by the Department Director and the Finance Department. The Department Director shall check for reasonableness and the Finance Department shall review the expenses and check the accuracy of transportation costs and time covered. The Finance Department will not issue any additional travel advances until all outstanding advances, receipts or monies are turned into Finance. The Finance Department is responsible for reviewing and verifying receipts and/or records submitted for reimbursement and issuing checks. Questionable receipts will be submitted to the City Manager or Assistant City Manager for their approval. Payment for reimbursements will not be made without submission of the required documentation. All travel reimbursements require approval by the Department Director. If the travel expense report is not submitted as required, the travel request authorizes the City of La Porte to deduct the full amount of the travel advance from the employee's paycheck. 8 1998 FEDERAL PER DIEM RATES (HOUSTON AREA ONLY) The daily per diem rate for meals and incidental expenses for 1998 is: $38.00 For partial days away from home we have prorated the daily rate to: BREAKFAST: $12.66 LUNCH: $12.67 DINNER: $12.67 If you are traveling out of the Houston area, please refer to the attached Federal Per Diem Rate Schedule for the correct daily rate. If the City that you are traveling to is not listed on the schedule, please use the city closest to your destination. 1998 IRS MILEAGE RATE The IRS has announced that the standard business mileage rate for 1998 is: .325 9 1998 FEDERAL PER DIEM RATE SCHEDULE FOR THE STATE OF TEXAS City, County Amount Abilene, Taylor Amarillo, Potter Austin, Travis College Station/Bryan, Brazos Corpus Christi/Ingelside, Nueces and San Patricio DallasIFort Wurth, Dallas and Tarrant Eagle Pass, Maverick El Paso, El Paso Fort Davis, Jeff Davis Galveston, Galveston Granbury, Hood Houston, Harris County Killeenffemple, Bell Lajitas, Brewster Lubbock, Lubbock McAllen, Hidalgo Midland/Odessa, Ector and Midland Piano, Collin San Antonio, Bexar Tyler, Smith Victoria, Victoria Waco, McLennan 30 30 34 30 30 42 34 30 30 42 30 38 30 30 34 30 30 34 34 30 30 30 If you are traveling to a location outside of Texas, please check with Finance for the Per Diem amount for that state. 10 FREQUENTL Y ASKED QUESTIONS ABOUT TRA VEL PROCEDURES = If traveling for 1/2 day, does the employee get a per diem for lunch? The decision would be up to the Department Director, depending on the location of the travel. = Do we pay tax on hotel and motels? Yes, the City of La Porte is required to pay tax on hotel and motels. = How many phone calls are allowed and for how long? One personal call a day is allowed at a maximum of$5.00. = When is an employee allowed a rental car? If the seminar is held in the hotel that the employee is residing at and/or a complimentary shuttle is provided to the seminar location, a rental car would not be allowed. = What is the maximum amount for meals? The federal per diem rates per the IRS are: Breakfast: Lunch: Dinner: $12.66 $12.67 $12.67 = Does the City pay for tips to baggage handlers? Yes, however this amount is included in the per diem rate. = Does the City pay for tips to taxi drivers? Yes, taxi tips should be noted on the receipt for taxi service. Q Can employees get hotel rooms in the Houston/Galveston metropolitan areas? The decision would be at the discretion of the Department Director. 11 C Who is allowed to travel out-of-state? All out-of-state travel must be approved by the City Manager. C Are movies allowed in hotels/motels? The City will not pay for the cost of fee-added movies/ entertainment. C Is employee allowed to use the valet parking? Yes, reasonable valet parking is allowed. C Does an employee need to get the insurance on car rentals? No, employees are covered under the City's insurance. C Is an itemized hotel bill needed or just a receipt acceptable? An itemized hotel bill is required, a receipt with just the total amount is not acceptable. C Is employee allowed a per diem for dinner if the flight is due back in the afternoon? No. C Will the City pay for flight insurance? No. C Is an employee allowed mileage if he/she is taking a City car? No, gasoline is only allowed if the employee is using a City car. 12 "',1ICaI00 I~.f.r !AI,....... ..... ~ I Fi '0 i ~oIi - ." j' _ ; E .. " - c... i!. ,. , ".... .- . - '1 1'1 li'~ ,. !;I'~ i~-' !d' II III p~ ijPi ft pt II III I "~-HJJJJllJJi~ f~?ti- llITr.TIT~~~~~ ,I 'Ii I! ij ,~: fl l ~ ... ". .... q. Ii !i l~ r:-i Ii -I FI 1- '" ,. 'i f'il I. ~ bl! .. ! ~ ~ !~~ ~ I.::<'~ ,.R ,..,.;r I ! f, I . .... ", =~ "' ~~ ;<D ~c en o >- " m " > z ,. ~/ "'I ! :lii ". ! ;; ',' i,' f ~'i~. i~ . . j , l . " ~ '11- .. '.'.' !' ~ r . I . ijl \ !: ~ HALL I BARNU.... ARCHITECTS . LA PORTE COUIIUNIlY L1BIlARV lEAS LANDSCAPE ARCHITECTURAL ~~~_.Iol""'S1I1"'cIIn.g ~.:i'~~Sl~oIoD' R.'.I: lo~4 InT w..."... "__. TX nUl n:s 8.1 7U1 .00 South ............ l&P.n.. T_77671