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HomeMy WebLinkAboutO-2001-2504 . e ORDINANCE NO. 2001- ~?Dt AN ORDINANCE APPROVING AND AUTHORIZING AN OPERATOR'S AGREEMENT BETWEEN THE CITY OP LA PORTE AND THE LA PORTE AREA WATER AUTHORITY, MAKING VARIOUS PINDINGS AND PROVISIONS RELATING TO THE SUBJECT, PINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EPPECTIVE DATE HEREOP. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the city to all such documents. Section 2. The city Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the SUbject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. . ORDINANCE NO. 2001- ~50t e PASSED AND APPROVED, this 13th day of August, 2001. By: ATTEST: Knox W. Askins, City Attorney CITY OF LA PORTE bUA,~~ oman L. Malon, - Mayor PAGE 2 e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: AUI!US~OOI Requested By: So Gillett ~p Department: Public Works Appropriation Source of Funds: Account Number: Report: Resolution: Ordinance: XX Amount Budgeted: Exhibits: Ordinance Amount Requested: Exhibits: Operator's Al!reement Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The La Porte Area Water Authority approved the Operator's Agreement between the City of La Porte and the Authority on August 7, 2001. The Agreement provides for the operation of the Authority transmission system and billing, accounting and other support needed by the City of La Porte. The Agreement is for a three-(3) year period beginning October 1, 2001, and provides for renewal for an additional three-(3) year period. Previous Agreements provided for an annual fee of $40,000 to be paid by the Authority for these services. The proposed Agreement provides for an increase of the annual fee to $50,000 per year, with an annual cost of living adjustment based on the April Consumer Price Index for all Urban Consumers, all items, U.S. City Average. This annual adjustment will provide for increasing costs associated with administering the Agreement. Action Required bv Council: Approve an Ordinance authorizing the Mayor to execute an Operator's Agreement between the City of La Porte and the La Porte Area Water Authority. Approved for City Council Al!enda G1JJ T. ~ Robert T. Herrera, City Manager Cj{.1 . 0 \ Date e e OPERATOR'S AGREEMENT This agreement, entered into this 1~ day of August, 2001, by and between the La Porte Area Water Authority, acting by and through its duly authorized officers (hereinafter sometimes referred to as "OWNER") and the City of La Porte, Texas, acting by and through its duly authorized officers (hereinafter sometimes referred to as "OPERATOR"). For and in consideration of the mutual undertakings herein contained, Authority and City agree as follows: I. OPERATOR agrees to operate, maintain, repair, and manage OWNER'S property for a term of three (3) years commencing October 1, 2001 with an option to renew this agreement for an additional period of three (3) years, subject to the agreement of both parties. This agreement is subject to termination at any time without cause by either party giving ninety (90) day written notice to the other. II. Operation shall consist of furnishing labor and administrative support services to provide efficient operation, maintenance, and management of OWNER'S transmission system, shown on record construction drawings on file at the La Porte City Hall, and to provide clerical and administrative support for the billing, accounting, and other support needed for efficient operation of OWNER'S transmission system, which includes, but not limited to the following: 1. Provide operating personnel at all times who hold valid water works licenses issued by the Texas Natural Resources Conservation Commission. 2. Provide operating personnel on-call twenty-four (24) hours per day, seven (7) days per week with a twenty-four (24) hour telephone dispatching service and vehicles equipped with two-way radios. 3. Provide clerical and administrative support for accounting, supervisory, and other support as needed efficient operation of OWNER'S transmission system. billing, for the 4. Daily check, at all customer takepoints, (including weekends and holidays) : a. All control systems; b. Take meter readings; and c. Check all electrical operations. e e 5. Collect, on a monthly basis, all necessary water samples as required by local, state, and federal regulations. 6. Run complete chemical analysis of water supply. 7. Prepare, submit, and furnish copy to OWNER all required reports to local, state, and federal agencies having regulatory powers over OWNER'S transmission system. 8. Furnish monthly operational, fiscal, and budgetary reports to OWNER. 9. Prepare operation line-item budget estimate for OWNER'S approval prior to the termination of this Agreement. 10. Perform preventive maintenance as required by manufacturers' operating manuals, provided by OWNER. equipment 11. Maintain required records of water system operations. 12. Report to OWNER system improvements and/or major repairs needed. 13. Prepare, mail, and collect monthly bills for water consumed by all customers, in accordance with the Accounting Policy Statement attached hereto as Exhibit "A". 14. Process invoices for materials, supplies, and services necessary to operate the water supply system. 15. Provide necessary office space in its facilities for a master control center needed for the control, historical recording, and reporting of the water transmission system. III. OPERATOR shall receive compensation for services (Annual Fee) enumerated in Section II above in the amount of $50,000, pa~able monthly, in a sum equal to 1/12 of the Annual Fee, on or before the 15 h day of each month that this Agreement remains in effect. The Annual Fee shall be binding on the Operator and the Owner for the first year of the Agreement, that is from October 1, 2001 through September 31, 2002. Beginning October 1, 2002, and in subsequent years thereafter, there shall be an annual cost of living adjustment of the Annual Fee. The annual cost of living adjustment shall be calculated by multiplying the Annual Fee by a fraction, the denominator of which shall be the April 2001 Consumer Price Index for All Urban Consumers (CPI-U), all items, U.S. City Average, and the numerator shall be the CPI-U for all items, U.S. City Average for April 2002, and subsequent dates of adjustment. e e IV. OPERATOR will procure, to OWNER'S account, supplies, materials, equipment, and services, utilizing funds allocated in OWNER'S approved budget, attached hereto as Exhibit "B", for the routine operation of OWNER'S transmission system. OPERATOR shall conform to all applicable purchasing laws of the State of Texas in the procurement of all supplies and materials necessary for the operation of the transmission system. V. Repairs, adjustments, and operation of the system outside of the scope of services outlined in Section II of this Agreement will be billed to OWNER on an actual cost basis. Whenever possible, OPERATOR will obtain advance approval from OWNER prior to beginning non-routine work; however, OPERATOR is authorized to proceed, unless specifically directed otherwise, in those cases deemed necessary by the OPERATOR. VI. OPERATOR will exercise good judgement in the replacement of equipment under this Agreement. OWNER will not hold OPERATOR responsible for guarantees or warranties for such equipment. The OPERATOR will make responsible efforts to secure normal guarantees to OWNER. VII. OPERATOR is retained by OWNER only for the purpose and to the extent set forth in this Agreement, and his relation to OWNER, during the period of this Agreement, is that of an independent entity, and he shall be free to dispose of such portion of his entire time not required to satisfy the terms of this Agreement in any manner he deems advisable. OPERATOR shall not be considered an employee of OWNER. VIII. OPERATOR agrees that all customers of OWNER will receive equal treatment under the termS of this Agreement. IX. OPERATOR shall be required to operate within the current guidelines of its governing body and shall notify OWNER of any possible conflicts with such guidelines, as soon as practicable after the occurrence of said possible conflicts. e e X. OPERATOR hereby assumes entire responsibility and liability for any and all damage or injury of any kind or nature whatever (including death resulting therefrom) to all persons, whether employees of OPERATOR or otherwise, and to all property caused by, resulting from, arising out of, or occurring in connection with the maintenance and operation of OWNER'S transmission system provided for in this Agreement and if any person shall make a claim for any damage or injury (including death resulting therefrom) as hereinabove described, whether such claim may be based upon the OWNER'S alleged active or passive negligence or participation in the wrong or upon any alleged breach of any statutory duty or obligation on the part of the OWNER, the OPERATOR agrees to indemnify and save harmless the OWNER, its agents, servants, and employees from and against any and all loss, expense, damage, or injury that the OWNER may sustain as a result of any such claims and the OPERATOR agrees to assume, on behalf of the OWNER, the defense of any action at law or in equity, which may be brought against the OWNER upon such claim and to pay on behalf of the OWNER, upon its demand, the amount of any judgement that may be entered against the OWNER in any such action. XI. Before commencing the work, the OPERATOR shall procure and maintain liability insurance, at its own expense, and procure and maintain workers' compensation and employee liability insurance in accordance with the laws of the State of Texas. The OPERATOR agrees that nothing contained in this paragraph shall limit or release the OPERATOR from its obligations otherwise provided for in this Agreement, including assumption of liabilities and indemnifications to the, OWNER. If the OPERATOR fails to procure and maintain at least the above insurance, the OWNER shall have the right to procure and maintain the said insurance for and in the name of the OPERATOR, and the OPERATOR shall pay the cost thereof and shall furnish all necessary information to make effective and maintain such insurance. XII. The OPERATOR for the Contract Price herein provided for, hereby agrees to pay and shall hold the OWNER harmless against the payment of all contributions, taxes, or premiums which may be payable under Federal, State, or Local laws arising out of the performance of the work. XIII. If either the OPERATOR or OWNER believes it has a claim of any nature whatsoever against the other party, it shall give the other written notice of the amount, whenever possible, and nature of such claim within forty-five (45) days (or such other time limits as may be expressly set forth in the Agreement) of the occurrence of the event upon which such claim is based. In default of such notice the claim is waived. e e XIV. All matters relating to the validity, performance, interpretation, or construction of this Agreement or the breach thereof shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands and seals the day and year first above written. CITY OF LA PORTE ~~~ M"o ?l al'dtfe, a r ATTEST: ;;;!J{ ad 4/ (J. 1fAmj- Marth A. Gillett, City Secretary LA PORTE AREA WATER AUTHORITY By: , President AT~~ _ ~h~~c~ ~uo~, Secretary ~;q'~ e e OPERATOR'S AGREEMENT This agreement, entered into this ,~ day of August, 2001, by and between the La Porte Area Water Authority, acting by and through its duly authorized officers (hereinafter sometimes referred to as "OWNER") and the City of La Porte, Texas, acting by and through its duly authorized. officers (hereinafter sometimes referred to as "OPERATOR"). For and in consideration of the mutual undertakings herein contained, Authority and City agree as follows: I. OPERATOR agrees to operate, maintain, repair, and manage OWNER'S property for a term of three (3) years commencing October 1, 2001 with an option to renew this agreement for an additional period of three (3) years, subject to the agreement of both parties. This agreement is ~ubject to termination at any time without cause by either party giving ninety (90) day written notice to the other. II. Operation shall consist of furnishing labor and administrative support services to provide efficient operation, maintenance, and management of OWNER'S transmission system, shown on record construction drawings on file at the La Porte City Hall, and to provide clerical and administrative support for the billing, accounting, and other support needed for efficient operation of OWNER'S transmission system, which includes, but not limited to the following: 1. Provide operating personnel at all times who hold valid water works licenses issued by the Texas Natural Resources Conservation Commission. 2. Provide operating personnel on-call twenty-four (24) hours per day, seven (7) days per week with a twenty-four (24) hour telephone dispatching service and vehicles equipped with two-way radios. 3. Provide clerical and administrative support for billing, accounting, supervisory, and other support as needed for the efficient operation of OWNER'S transmission system. 4. Daily check, at all customer takepoints, (including weekends and holidays) : a. All control systems; b. Take meter readings; and c. Check all electrical operations. e e 5. Collect, on a monthly basis, all necessary water samples as required by local, state, and federal regulations. 6. Run complete chemical analysis of water supply. 7. Prepare, submit, and furnish copy to OWNER all required ~eports to local, state, and federal agencies having regulatory powers over OWNER'S transmission system. 8. Furnish monthly operational, fiscal, and budgetary reports to OWNER. 9. Prepare operation line-item budget estimate for OWNER'S approval prior to the termination of this Agreement. 10. Perform preventive maintenance as required by manufacturers' operating manuals, provided by OWNER. 11. Maintain required records of water system operations. equipment 12. Report to OWNER system improvements and/or major repairs needed. 13. Prepare, mail, and collect monthly bills for water consumed by all customers, in accordance with the Accounting Policy Statement attached hereto as Exhibit "A". 14. Process invoices for materials, supplies, and services necessary to operate the water supply system. 15. Provide necessary office space in its facilities for a master control center needed for the control, historical recording, and reporting of the water transmission system. III. OPERATOR shall receive compensation for services (Annual Fee) enumerated in Section II above in the amount of $50,000, pa~able monthly, in a sum equal to 1/12 of the Annual Fee, on or before the 15 h day of each month that this Agreement remains in effect. The Annual Fee shall be binding on the Operator and the Owner for the first year of the Agreement, that is from October 1, 2001 through September 31, 2002. Beginning October 1, 2002, and in subsequent years thereafter, there shall be an annual cost of living adjustment of the Annual Fee. The annual cost of living adjustment shall be calculated by multiplying the Annual Fee by a fraction, the denominator of which shall be the April 2001 Consumer Price Index for All Urban Consumers (CPI-U), all items, U.S. City Average, and the numerator shall be the CPI-U for all items, U.S. City Average for April 2002, and subsequent dates of adjustment. '. e e IV. OPERATOR will procure, to OWNER'S account, supplies, materials, equipment, and services, utilizing funds allocated in OWNER'S approved budget, attached hereto as Exhibit "B", for the routine operation of OWNER'S transmission system. OPERATOR shall conform to all applicable purchasing laws of the State of Texas in the procurement of all supplies and materials necessary for the operation of the transmission system. V. Repairs, adjustments, and operation of the system outside of the scope of services outlined in Section II of this Agreement will be billed to OWNER on an actual cost basis. Whenever possible, OPERATOR will obtain advance approval from OWNER prior to beginning non-routine work; however, OPERATOR is authorized to proceed, unless specifically directed otherwise, in those cases deemed necessary by the OPERATOR. VI. OPERATOR will exercise good judgement in the replacement of equipment under this Agreement. OWNER will not hold OPERATOR responsible for guarantees or warranties for such equipment. The OPERATOR will make responsible efforts to secure normal guarantees to OWNER. VII. OPERATOR is retained by OWNER only for the purpose and to the extent set forth in this Agreement, and his relation to OWNER, during the period of this Agreement, is that of an independent entity, and he shall be free to dispose of such portion of his entire time not req~ired to satisfy the terms of this Agreement in any manner he deems advisable. OPERATOR shall not be considered an employee of OWNER. VIII. OPERATOR agrees that all customers of OWNER will receive equal treatment under the terms of this Agreement. IX. " OPERATOR shall be required to operate within the current guidelines of its governing body and shall notify OWNER of any possible conflicts with such guidelines, as soon as practicable after the occurrence of said possible conflicts. .. I e e X. OPERATOR hereby assumes entire responsibility and liability for any and all damage or injury of any kind or nature whatever (including death resulting therefrom) to all persons, whether employees of OPERATOR or otherwise, and to all property caused by, resulting from, arising out of, or occurring in connection with the maintenance and operation of OWNER'S transmission system provided for in this Agreement and if any person shall make a claim for any damage or injury (including death resulting therefrom) as hereinabove described, whether such claim may be based upon the OWNER'S alleged active or passive negligence or participation in the wrong or upon any alleged breach of any statutory duty or obligation on the part of the OWNER, the OPERATOR agrees to indemnify and save harmless the OWNER, its agents, servants, and employees from and against any and all loss, expense, damage, or injury that the OWNER may sustain as a result of any such claims and the OPERATOR agrees to assume, on behalf of the OWNER, the defense of any action at law or in equity, which may be brought against the OWNER upon such claim and to pay on, behalf of the OWNER, upon its demand, the amount of any judgement that may be entered against the OWNER in any such action. XI. Before commencing the work, the OPERATOR shall procure and maintain liability insurance, at its own expense, and procure and maintain workers' compensation and employee liability insurance in accordance with the laws of the State of Texas. The OPERATOR agrees that nothing contained in this paragraph shall limit or release the OPERATOR from its obligations otherwise provided for in this Agreement, including assumption of liabilities and indemnifications to the OWNER. If the OPERATOR fails to procure and maintain at least the above insurance, the OWNER shall have the right to procure and maintain the said insurance for and in the name of the OPERATOR, and the OPERATOR shall pay the cost thereof and shall furnish all necessary information to make effective and maintain such insurance. XII. The OPERATOR for the Contract Price herein provided for, hereby agrees to pay and shall hold the OWNER harmless against the payment of all contributions, taxes, or premiums which may be payable under Federal, State, or Local laws arising out of the performance of the work. XIII. If either the OPERATOR or OWNER believes it has a claim of any nature whatsoever against the other party, it shall give the other written notice of the amount, whenever possible, and nature of such claim within forty-five (45) days (or su~h other time limits as may be expressly set forth in the Agreement) of the occurrence of the event upon which such claim is based. In default of such notice the claim is waived. e e XIV. All matters relating to the validity, performance, interpretation, or construction of this Agreement or the breach thereof shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands and seals the day and year first above written. CITY OF LA PORTE !1~~~ N man Malone; M or ATTEST: ~1JJ;I/l,1rA. J(JLat Mart a A. G~ lett, City Secretary LA PORTE AREA WATER AUTHORITY By: , President ATU · -~- ~fi~c~ ~OOL, Secretary ~J=i"~