HomeMy WebLinkAbout11-06-06 Joint Special Called Regular Meeting of La Porte Development Board of Director and La Porte City Council Minutes
MINUTES OF THE JOINT SPECIAL CALLED MEETING OF THE LA PORTE
DEVELOPMENT CORPORATION BOARD OF DIRECTORS AND LA PORTE CITY
COUNCIL
November 6, 2006
1. Call to Order
President Pat Muston and Mayor Alton E. Porter called the meeting to order at 5:05 p.m.
Members Present: Bill Love, Howard Ebow, Chuck Engelken, Tommy Moser, Mike
Clausen, Barry Beasley, Pat Muston, Mayor Porter, Mike Mosteit, Louis Rigby and Peter
Griffiths..
Members Absent: Ed Matuszak.
Staff Present: City Secretary Martha Gillett, Interim City Manager John Joerns, City
Consultant/Advisory Debra Feazelle, Assistant City Attorney Clark Askins, Assistant City
Secretary Sharon Harris and Interim Finance Director Michael Dolby
Others Present: Jan Lawler, Ruben Rodriguez, Paula Divalerio, and Randy McCaslin.
2. Motion was made bv Board Member Engelken to approve the Minutes of October 9, 2006
with corrections to item 14 adding the words Feasibility Study after Hotel Proiect Feasibility
Study. Second by Board Member Love. Motion carried unanimously.
Ayes: Bill Love, Pat Muston, Mike Clausen, Chuck Engelken and Tommy Moser.
Nays: None
Abstain: None
3. Interim Finance Director Michael Dolby reported to the board public hearing requirement
for expending section 4B Tax Proceeds.
Mr. Dolby informed the board a public hearing is not required for a feasibility study.
Mr. Ebow arrived at 5: 15 p.m.
Items 5A and 5B were taken out of order. See item 5A and 5B below.
4. Consider approval or other action setting a public hearing date for proposed expenditure of
4B funds.
No action taken on this item due to public hearing not being required.
5. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS
LAW, CHAPTER 551.071 THROUGH 551.076, 551-087, TEXAS GOVERNMENT CODE
(CONSULTATION WITH 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
La Porte Development Corpo...don -11/06/06-
Page 2
WITNESS IN AN INVESTIGATION, DELIBERATION REGARDING ECONOMIC
DEVELOPMENT NEGOTIATIONS)
A. SECTION - 551-072 - (PROPERTY SALE OR EXCHANGE)
MEET WITH INTERIM CITY MANAGER,
CITY CONSULTANT/ADVISOR AND CITY
ATTORNEY REGARDING CITY/COUNTY
HOTEL PROJECT
B. SECTION - 551-087 - (ECONOMIC DEVELOPMENT)
MEET WITH INTERIM CITY MANAGER,
CITY CONSULTANT/ADVISOR AND CITY
ATTORNEY, REGARDING ECONOMIC
DEVELOPMENT (PROJECT AUSTIN
POWERS)
Council retired to Executive Session at 5: 15 p.m. and returned to the Regular Meeting and
reconvened at 6:09 p.m.
6. Considerations and possible action on items considered in executive session.
SA - Board Member Chuck Engelken made a motion the 4b Development Corporation fund
consultant for an amount not to exceed $75,000.00. Second by Board Member Love.
Motion carried unanimously.
5B - Chairman Muston accepted volunteers to meet with her and Debra Feazelle and the
prospect. Howard Ebow volunteered to meet with them.
7. Administrative Reports.
Jan Lawler of Economic Alliance Houston Port Region shared a video on Project Stars with
the Board. She further noted this video can be used to market the City and play on Access
Channel 16.
8. Board Comments
There were no additional board comments.
9. Adjournment
The meeting was duly adjourned at 6:10 p.m.
A Pj~e~~f~ll:.~U'\JJ~ LJ)J1)
~~ett 7r-
City Secretary TRMC, CMC
La Porte Development Corporation Secretary
Passed and approved on this ~ day of D(~entbt, 2006.
REQUEST FOR CITY COUNCIL AGENDA ITEM/LA PORTE DEVELOPMENT
CORPO TION
Agenda Date Requested: December 11. 2006
Appropriation
Requested By: Debra Feazelle, Municipal Consultant
Source of Funds: Fund 038
Department: Administration
Account Number: 03860305655007
Report:
Resolution:
Ordinance:
Amount Budgeted: *
Exhibits:
Agreement
Amount Requested: $75.000
Exhibits:
Budgeted Item: * Approved at the
November 6, 2006 meeting
Exhibits:
SUMMARY & RECOMMENDATION
At the November 6 joint meeting of the La Porte City Council and the La Porte Development
Corporation, the La Porte Development Corporation authorized funds not to exceed $75,000 for
a consulting services agreement for a Market Study and Impact Analysis and other services
related to the proposed hotel project.
Per the La Porte Development Corporation Bylaws (excerpt attached), City Council must approve
contracts and expenditures over $15,000. The joint meeting agenda will include an action item for City
Council followed by an action item for the La Porte Development Corporation.
Note: the City Council Agenda for December 11 will include an appropriate budget adjustment.
Action Required bv Council/La Porte Development Corporation:
Consider approval of an agreement between the La Porte Development Corporation and
Consultivo Group LLC and expenditure of Corporation funds not to exceed $75,000 to fund said
agreement.
/o?/~jp~
Date ( (
CONSULTANT AGREEMENT
DATE: November 14,2006,
CONSULTANT'S NAME:
Consultivo LLP
This agreement is entered into by La Porte Development Corporation hereinafter referred to as "The
Corporation," and Consultivo LLP, hereinafter referred to as the "CONSULTANT." Acting as a legally
registered company and as a HUB certified company in the State of Texas, the CONSULTANT is
performing services as an independent contractor, and this agreement does not create a partnership, joint
enterprise, or employment relationship between the parties.
The Corporation wishes to obtain the CONSULTANT's services and the CONSULTANT is willing to
perform them personally in accordance with the following terms and conditions:
1. Services: Scope of CONSULTANT's Services shall be to perform hotel feasibility study for the
Corporation based on the attached Scope of Service, Addendum A dated November 14,2006.
2. Period of Performance: The period in which the CONSULTANT's services will be performed shall
commence on December 12, 2006, and shall terminate on March 21, 2007, or upon completion of
the services (see scope), whichever comes first, unless terminated in accordance with Paragraph 11.
Consideration: The Corporation shall pay the CONSULTANT a monthly retained fee of
$13,000.00 with the following anticipated Scope of Service, see Exhibit A, plus the cost of the
sub.consultant's engagement of a hotel market analyst for a total "Not to Exceed" sum of
$75,000.00
3. Expenses: The fee and costs referenced in paragraph 2 is all inclusive and includes any normal
expenses, including sub. consultants, incurred by the CONSULTANT, as described in Exhibit A.
4. Payment Schedule: The Corporation shall pay the CONSULTANT after acceptance of the
CONSULTANT's services and receipt from the CONSULTANT of a signed invoice, including any
receipts, invoices, and other substantiation as the Corporation may reasonably require, unless
otherwise stipulated and agreed upon by Supervisor. Such invoice shall specify the period for which
compensation is claimed. The Corporation shall be entitled to withhold payment for services which
are unacceptable, as determined by the Corporation, until such services are made acceptable by the
CONSULTANT and are accepted by the Corporation. The monthly fee shall be viewed as a "retained
services fee" and shall be payable at the commencement of the services by the Consultant and at
first of each month of service. The sub. consultant's cost shall be payable as 50% of the cost at the
commencement of that sub. consultant's work and 50% on completion of that sub. consultant's work.
5. Taxes. Benefits and Insurance: As an independent contractor performing services for the
Corporation, the CONSULTANT understands and agrees that it is solely responsible for his State and
Federal taxes and for the payment of certain other payroll related expenses.
The CONSULTANT authorizes the Corporation not to withhold from its wages any amount for
Federal Insurance Contributions Act (FICA) and for Federal and State income taxes.
The CONSULTANT understands that it is not covered by any benefit plans maintained by the
Corporation.
6. Trade Secrets: The CONSULTANT shall not, during the term of this agreement or at any time
thereafter, divulge, use, furnish, disclose, or make accessible to anyone other than the Corporation,
or its employees, officers or directors, or other than in the Corporation's usual course of business, any
knowledge or information with respect to (i) confidential or secret processes, plans, formulae,
programs or material relating to the business, services, or activities of the Corporation, its affiliates, or
subsidiaries, (ii) any confidential or secret development or other original work of the Corporation, its
t~
affiliates, or subsidiaries, (iii) any other confidential or secret aspect of the business, products,
services, or activities of the Corporation, its affiliates, or subsidiaries.
7. Indemnification : CONSULTANT's services shall be performed with the usual thoroughness and
competence of the consulting profession, in accordance with the standard for professional services at
the time such services are rendered. No other warranty or representation, either expressed or
implied, is included or intended hereunder.
8. Disclosure of Information: All records, materials, and information obtained by the CONSULTANT
during the term of this Agreement are confidential and shall remain the exclusive property of the
Corporation. During and after the term of this Agreement, the CONSULTANT shall at no time
duplicate, distribute, nor use the contents of such records, materials, or information for any purpose
whatsoever other than in connection with the Corporation business and operations and as required
for CONSULTANT's performance of services, nor shall the CONSULTANT divulge the same. This
provision shall not apply to any information which is now, or subsequently becomes, in the public
domain, provided that the CONSULTANT has not, during or after the term of this Agreement violated
this provision, disclosed or cause to have disclosed such information as to make it public or within the
public domain.
9. Ownership of Materials: The materials prepared by the CONSULTANT have been specially
ordered and commissioned by the Corporation and shall be considered "works made for hire," as that
term is used in the Copyright Act of 1976, as from time to time amended. The parties hereto intend
that the Corporation shall be the sole and exclusive owner of each and every right, title, and interest
in and to the materials. To the extent that all rights, title, and interest in and to any of the materials
does not vest in the Corporation in any jurisdiction by virtue of the status of such materials as "works
made for hire," the CONSULTANT hereby assigns and transfers exclusively to the Corporation all of
its rights, title, and interest in and to such materials throughout the world, including all rights of
copyright therein, the right to obtain all copyrights and renewals of copyright in the Corporation' name
without limitations, and the right to grant licenses for the use of the materials. As sole and exclusive
owner of all rights, title, and interest in and to the materials, the Corporation shall have the right to use
them in any manner, regardless of whether or not this Agreement has terminated, and regardless of
whether or not the CONSULTANT continues to serve under the terms of this Agreement.
CONSULTANT agrees to cooperate fully with the Corporation and the Corporation rights in the
materials. Without limiting the foregoing, the CONSULTANT agrees to execute, deliver, file, and
record at the Corporation expense such documents as reasonably may be required by the
Corporation in order to protect the Corporation rights.
10. Survival of Provisions: CONSULTANT acknowledges and agrees that the covenants and
agreements of the parties contained in Sections 7,9, and 10 shall survive the termination of this
Agreement.
11. Termination:
a. Term - The term of this Agreement shall be as set forth in Paragraph 2 above, or until
terminated, as provided in this Paragraph 11.
b. By the Corporation - Upon completion of services by the CONSULTANT.
c. By the Corporation Without Cause - the Corporation may terminate this Agreement with
one month's notice.
d. By the Corporation For Cause - the Corporation may terminate this Agreement:
i. If the CONSULTANT neglects, or fails to observe or perform any of his/her
obligations under this Agreement; or
ii. If a judgment or decree is entered against the CONSULTANT approving a
petition for an arrangement, liquidation, dissolution or similar relief relating to
bankruptcy or insolvency and such judgment or decree remains unvacated for
thirty (30) days; or
~
iii. Immediately if the CONSULTANT shall file a voluntary petition in bankruptcy or
any petition or answer seeking any arrangement, liquidation or dissolution
relating to bankruptcy insolvency or other relief for debtors or shall seek or
consent or acquiesce in the appointment of any trustee, receiver or liquidator of
any of the CONSULTANTs property.
e. By CONSULTANT - The CONSULTANT may terminate this Agreement at any time or
upon completion of all services it has agreed to perform pursuant to Paragraph 1.
The La Porte Development Corporation
604 W. Freemont Parkway
La Porte Texas 77571
CONSULTANT: Consultivo LLP
1705 Del Paso
Texas 78641
By Con ultivo Group LLC, it's General Partner
fJJfp~
By: Ruben Rodriguez, Manager of the General Partner_
~
+ : Compensation of Officers
4.07. The officers shall not receive any salary or compensation for their services. Officers
may be reimbursed for their actual expenses incurred in the performance of their duties. Travel
expenses shall be reimbursed under the City's travel policy.
ARTICLE V
TRANSACTIONS OF THE CORPORATION
Contracts
5.01. The Board of Directors may authorize any officer or agent of the Corporation to enter
into a contract or execute and deliver any instrument in the name of or on behalf of the
Corporation. This authority may be limited to a specific contract or instrument or it may extend
to any number and type of possible contracts and instruments.
Depository Bank
5.02. All funds of the Corporation shall be deposited with the City's depository bank.
Potential Conflicts of Interest
5.03. ' The members of the Board of Directors are local public officials within the meaning of
Texas Local Government Code Chapter 171. If a director has a substantial interest in a
business entity or real property which is the subject of deliberation by the Board of Directors,
the director shall file an affidavit with the secretary of the Corporation stating the nature and
extent of the interest. Such affidavit shall be filed prior to any vote or decision upon the matter
by the Board of Directors. and the interested director shall abstain from any vote or decision
upon the matter.
Council Approval
, ,
'. '. . .
5".,Q~'ic:>.,(Ih.~, Bq~{g,pf, Oir~(;tQr$(sl1alJ'b6faii+ prior. City' Council'8pp(q\lat9f:~IJreq!~e$f~tEt 'r,
:'";>::--j.~..,,;.h_"~... ".',.-.",;}-.~, ~',.'~"'" :.~'" ',~,-...._,;o, .;. """':;;:;_;".{L:'~'''''''' ,,',,' -. ".'< ";,>:.,"',- ",C, :,~' --' ..".' ",";:.- . ....; ",,, "",_ ,. .. ". . '_, '. _ '"....,..',;.-.,..,'., ::":/,'\~'_",,,- ,,?:,~":'~':'",.' ';<;''!'~7.U'''''''H:~',,,,,,-,,I!.;': 'c,'': '" ",....
," ac'"'tiisitioriSi\;'teal'estate: lel:l'sesifor over:dhe. "earand,6fan' , 16h';,.tefm1h3ases'~tcoHtracts<; .:
..".""""""q:x,:'?',j"C,,,,~,,,,,>'.b"n',."'" i"C"'","",'",i','C"'.:'."";:-" ." '.f';',,, ,,,",,,,,,,;,,",,,' ,',,'. Y ..'i'h.;"",.,,,, ""..,.,.., '., Yc"",,:, Q.:.4""";; i,:;:: ::."\":".,.;,..,1;\,,.,,;...,:.,.,,,...,. :0 ;;....;
"'~'ex';'endituresSn)fi:feots'overj$ t5'ooa.oo'c'atid: bond issues'-of'otlie'tidebtextendin . " be Cind'O'ne
,,,,,..?fi'Plj.""'''''''''''':'''''''''''''''':' ."",.,.,.,,, i'., ; , ',.", ".' '":''''''',''' ,'V'.' ....."',,':"'.' ," i'C'. . ""C' "',,' ?'''''/'''''',...,...""" ". ..~:t;:>x." ",..,.. ...
:;x~]!r{c:fh~Board ofbfrectors shall haVe tHeauth'orityto enter ihto al(oth~tbl1dget~(f' '.' ."
'transactions without prior City Council approval. Amendments to the budget must be approved
by the City Council.
6
12
6
i~
Consultivo
Exhibit A
La Porte Development Corporation hotel feasibility study - Consultancy Scope of Service - dated
November 14th 2006
Anticipate the following scope of service:-
. Review owners needs, goals and requirements
. Discuss and provide narrative of conceptual program
. Discuss and provide narrative of conceptual design
. Review and study feasibility of program on City owner site
. Ditto, on combined site
. Facilitate and manage hotel and conference center market analysis study
. Facilitate and manage local economic impact study
. Research funding sources
. Present funding sources
. Research industry deliverables and options
. Research, analyze and present hotel flag / management company partner - where possible
. Facilitate presentation and for private partners - where possible
. Ditto public options
. Ditto Design partners - where possible
. Provide conceptual schedule\provide conceptual construction budget
. Provide research and consultancy as directed.
(the hotel market analysis study for a full hotel/conference center market will be done by an independent
consultant. We intend to use PKF consulting for this study and report as a sub.-consultant. The cost for this
sub.-consultant is $25,000.00.
We anticipate that this effort will require between 3 to 5 months, dependent on requirements and progress
which, to a great extent, is beyond our direct control. This feasibility study shall be undertaken on a
retained monthly fee of $13,000.00.
It is expressly accepted that this Scope of Service is an outline and that this Agreement is based on a not to
exceed amount which may preclude all of the anticipated scope to be completed.
Co su Itivo td.
B: onsul ivo Group LLC, its general partner
nager of the general partner
R Rodriguez
1705 Del Paso
Texas 78641
5129409004
City of La Porte
Interoffice Memorandum
To:
La Porte Development Co 0 tion (4B Board)
From:
John Joems, Interim C
Date:
November 29,2006
Subject:
Economic Development Coordinator Hiring Process Status
The Economic Development Coordinator position was approved by the 4B Board on July 24 and
by City Council on September 11. The original intent was to post the position for 90 days
beginning October 1 (beginning of the 06-07 fiscal year). The 4B Board expressed a desire to
hire someone by January 1. Staff completed the required paperwork to post the position on
September 27. Unfortunately, the original posting was not advertised completely. Therefore,
exposure ofthe posting was very limited resulting in only 9 application submittals (only 2
passing initial screening). Staff recommends adjusting advertisement of the position and
extending the deadline until January 15. A revised hiring timeline is attached.
As discussed at the last meeting, a list of Goals and Objectives for the Economic Development
Coordinator has been prepared and attached for your review.
JJ:cns
Enclosures (2)
c: Debra Brooks Feazelle
Michael Dolby
Revised 11/29/06
Economic Development Coordinator
Hiring Process / Schedule
10/1/06
Advertised on City Website and Job Board
11 /7/06
Advertised in professional associations
o TML
o Texas Workforce Commission
11/9/06
Sought help with search from Alliance and Bay Area Houston
11/29/06
Advertise on Texas Economic Development Council and Texas
Downtown Association
1/12/07
Job Posting Closes
1/15-1/17/07
Initial screening by Human Resources; screen applicants not meeting
minimum job requirements
1/22 - 1/24/07
Interview team to review remaining applications and select top
applicants to interview (interview 3-5 applicants)
1/26/07
Inform CMO oftop applicants
1/29 - 1/30/07
Interview team to interview and rank top applicants
Interview Team:
Bill Love
John Joems
4B Board
Interim City Manager
To be determined
To be determined
To be determined
DRAFT
11/29/2006
Economic Development Coordinator
Goals and Obiectives
1. Act as,staffliaison to the La Porte Development Corporation (4B Board) and the
TIRZ/Redevelopment Authority
2. Become familiar with the City's (LPISD & Harris County) various economic
development incentives; IDA's, TIRZ, Tax Abatement Guidelines, Foreign Trade
Zones, 4B Regulations and other available incentives (Chapter 380, Governor's office
incentives)
3. Act as City's liaison with the Bay Area Houston Economic Partnership and the
Alliance regarding leads and other economic development issues
4. Review/recommend changes to City of La Porte's Tax Abatement Guidelines
(expiring January 31, 2007)
a. Refine: timelines, procedures, standard letters and notifications and typical
prototype agreements for Tax Abatements
5. Complete website design/installation with consultant
· Review/refine draft outline for website
· Recommend web consultant (in conjunction with Main Street)
· Manage consultant agreement for design and installation
6.a. Pursue the "primary selection" of retailer matches from the Buxton Community ID
Analysis
.
Work with landowners, developers and brokers to pursue sites and
financing
Provide additional growth information and note regarding Canada Road
assumptions
.
6.b. Pursue the "secondary (leftover) selection" of retailer matches from the Buxton
Community ill Analysis along with other similar retail matches
7. Provide information and impact analysis of various incentives for business retention
and development
8. Act as staff liaison to consultant developing La Porte Strategic Plan for Economic
Development. Maintain communication between City Managers' office, City Council,
La Porte Development Corporation, TIRZ/Redevelopment Authority and Planning and
Zoning Commission