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0 0 <br />0 Proposed Maintenance Agreement <br />Prior to requesting the Port Commission's authorization to proceed, the Fort statt has <br />requested La Porte and Morgan's Point to participate in the annual maintenance costs. <br />➢ The Port of Houston has asked La Porte and Morgan's Point to consider splitting the annual <br />maintenance costs in the following manner: <br />Port of Houston 40% <br />City of La Porte 30% <br />City of Morgan's Point 30% <br />To test the reasonableness of the proposed split, staff estimated the "project area" within each <br />entity and found the following percentages. <br />Port of Houston 40% <br />City of La Porte 30% <br />City of Morgan's Point 30% <br />> The table below estimates the annual maintenance costs for each entity using 1) The Port of <br />Houston's proposal and 2) using the above calculated percentages. <br />➢ Per the proposed agreement, the actual maintenance costs will be determined by an annual <br />competitive bid plus a 15% contingency. Additionally, if the Port determines this amount is <br />insufficient, the cities will deposit additional funds. <br />Barbour's Cut Landscaping Project <br />Estimated Annual Costs <br />Estimated Annual Maintenance Cost $169,020. t <br />Port of Houston Request <br />Based on Area within each entity2 <br />Port of Houston 40% <br />$ 67,608 <br />Port of Houston 40% <br />$ 67,608 <br />City of La Porte 30% <br />$ 50,706 <br />City of La Porte 24% <br />$ 40,565 <br />City of Morgan's Point 30% <br />$ 50,706 <br />City of Morgan's Point 36% <br />$ 60.847 <br />100% <br />$169,020 <br />100% <br />$169,020 <br />' The estimated annual maintenance cost is based on information provided by the Port's consultant, Vernon, Henry, <br />and Associates. <br />2 Where a street right-of-way line is the city limits, the city (or Port of Houston) that is beyond the right-of-way line <br />was apportioned the landscaped area. <br />Other Considerations <br />If Council is interested in agreeing to an annual maintenance fee, staff suggests amendments <br />to the proposal regarding irrigation water. <br />0 ➢ Of the projected $169,020 in annual maintenance $17,000 of that is for water. <br />➢ Currently, the Port of Houston has a multi -year (thru December 31, 2016) take or pay water <br />contract with Morgan's Point. The Port pays for 200,000 gal/day (6 million gal/month) of <br />water whether they use it or not. <br />2-2 <br />