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Home My WebLink About1986-06-23 Regular Meeting of La Porte City CouncilC7 MINUTES OF THE REGULAR MEETING OF LA PORTE CITY COUNCIL JUNE 23, 1986 1. The meeting was called to order by Mayor Malone at 6:00 P.M. Members of Citv Council Present: Mayor Norman Malone, Councilpersons Betty Waters, John Lloyd, Ed Matuszak, Alton Porter, Lindsay Pfeiffer, Deotis Gay, B. Don Skelton, Linda Westergren Mcn,hc+ra of Citv Council Absent: None Members of Citv Staff Present: City Manager Jack Owen, City Attorney Knox Askins, City Secretary Cherie Black, Director of Community Development John Joerns, Acting Public Works Director Steve Gillett, Director of Parks and Recreation Stan Sherwood, Human Resources Director Doug de la Morena, Purchasing Agent Tim Blackwell, Parks Director Bert Clark Others Present: Neil Bishop, Bob Reach, and Cecil Allen, Turner Collie & Braden; Ken James, American Golf Corporation; Melissa Lestarjette and Charles Hudgins, Bayshore Sun; 6 citizens 2. The invocation was given by Councilperson Skelton. 3. Council considered approving the minutes of the regular meeting held June 9, 1986. Motion was made by Councilperson Pfeiffer to approve the minutes of the June 9 meeting as presented. Second by Councilperson Gay. The motion carried, 6 ayes, 0 nays and 3 abstain. Ayes: Councilpersons Lloyd, Matuszak, Porter, Pfeiffer, Gay and Mayor Malone Nays: None Abstain: Councilpersons Waters, Skelton and Westergren (were not present at meeting on June 9) 4. There were no citizens present wishing to address Council. • Minutes, Regular Meeting, La Porte City Council June 23, 1986, Page 2 5. Council retired into executive session at 6:04 P.M. to confer with attorney regarding the lawsuit of Jose N. Gonzales versus City of La Porte, and returned to the Council table at 6:25 P.M. Motion was made by Councilperson Skelton to ap,Arove the two documents presented by Charles Dippel, Attornev for Sears & Burns Second by Councilperson Gay. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None 6. Council considered ordinances tabled for 120 days dealing with dangerous buildings. Ordinances 1425, 1455, 1456, 1460 and 1484 would be affected. Motion was made by Councilperson Waters to table Ordinances 1460 and 1484 for an additional 120 davs. Second by Councilperson Lloyd. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None Motion was made by Councilperson Waters to dismiss Ordinances 1' , 1455, and 14~F~, since sufficient progress has been made on the buildings involved. Second by Councilperson Westergren. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None 7. Council considered an ordinance to close a portion of Montana Street at the request of the Assembly of God Church. M~r;on was made by Councilperson Westergren to adopt Ordinance 1'9 , closing a portion of Montana Street. Second by Councilperson Waters. • Minutes, Regular Meeting, La Porte City Council June 23, 1986, Page 3 After discussion as to w closed and the status of was made by Council ep rso exclude the 16 foot alle Councilperson Pfeiffer. nays. by the whole the 16 foot n Skelton to y from the c The motion block was not being alley involved, mo io amend the motion and os' Second by carried, 9 ayes and 0 Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None The City Attorney read: ORDINANCE 1495 - AN ORDINANCE VACATING, ABANDONING AND CLOSING THAT PORTION OF MONTANA STREET BEING AN EIGHTY (80') FOOT RIGHT-OF-WAY, TOWN OF LA PORTE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF Motion was made by Councilperson Skelton to table Ordinance 1495 for further research. Second by Councilperson Porter. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None 8. Council considered an ordinance for the City of La Porte to join coalition of cities with original jurisdiction regarding Hnu~t~n Li~htin~ and Power Rates. The City Attorney explained the steps necessary to take this action. First, a Stipulation must be passed, agreeing to the dismissal of HL&P's appeal from the rate action of the City; then a Joint Motion to Dismiss Appeal must be passed; and finally, the rate ordinance needs to be adopted. The City Attorney read: ORDINANCE 1502 - AN ORDINANCE RELATING TO RATES TO BE CHARGED BY HOUSTON LIGHTING & POWER COMPANY FOR ELECTRIC UTILITY SERVICE WITHIN THE CORPORATE LIMITS OF THE CITY OF LA PORTE, TEXAS; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; PROVIDING FOR A REPEALER AND FOR SEVERABILITY; AND FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW. • Minutes, Regular Meeting, La Porte City Council June 23, 1986, Page 4 Motion was made }Zy Councilnerson Gay to approve the S ipulation and Joint Motion to Dismiss Anneal and to adopt Ordinance 1502 as read by the Citv Attorney. Second by Councilperson Westergren. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None 9. Council considered approving the request of Turner Collie & Braden to provide inspectional services. Director of Community Development John Joerns and Bob Reach and Cecil Allen of Turner Collie & Braden presented information to Council regarding this item. Motion was made by Councilperson Westergren to annrove the request of Turner Collie & Braden for inspectional services. subject to the letter of authorization being annroved_bv Council. Second by Councilperson Lloyd. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None 10. Council considered approving a proposal for soils and materials testing for the wastewater treatment plant expansion and Fairmont Parkway relief sanitary sewer. Motion was made by Councilnerson Skelton to annrove the proposal of McClelland Engineers Inc , for soils and materials testing for the wastewater treatment plant expansion and Fairmont__Parkwav relief sanitary sewer. Second by Councilperson Gay. *A~~4 ; ~,;, was made by Councilperson_ Skelton to amend the motion to read "subject to receiving a letter of confirmation". Second by Councilperson Gay. The amended motion carried, 9 ayes and 0 nays. Minutes, Regular Meeting, La Porte City Council June 23, 1986, Page 5 Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None 11. Council considered the consent agenda: A. Consider awarding bid for janitorial service. B. Consider awarding bid for street materials. Motion was made by Councilperson Gav to approve the consent agenda and accept staff recommendation on awarding the bids for ianitorial service and street materials. Second by Councilperson Lloyd. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton, Westergren and Mayor Malone Nays: None Council then considered an agenda addendum: Consider approving a resolution requesting Harris County to Provide Funding for Southeast Harris County Economic Development Corporation. The City Attorney read: RESOLUTION 86-17 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS URGING THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS TO SUPPORT THE SOUTH EAST HARRIS COUNTY ECONOMIC DEVELOPMENT COUNCIL. Motion was made by Councilperson Porter to approve Resolution 86-17 as read b~ the City Attornev. Second by Councilperson Matuszak. The motion carried, 8 ayes and 0 nays (Councilperson Westergren was away from the Council table) Ayes: Councilpersons Waters, Lloyd, Matuszak, Porter, Pfeiffer, Gay, Skelton and Mayor Malone Nays: None Council then considered an emergency addendum to the agenda: Consider a Resolution Regarding Dredging of the Ship Channel. • Minutes, Regular Meeting, La Porte City Council June 23, 1986, Page 6 The City Attorney read: RESOLUTION 86-18 - A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, IN SUPPORT OF THE DEEPENING AND WIDENING OF THE HOUSTON SHIP CHANNEL. Motion was made by Councilperson Gav to approve Resolution 86 18 as read by the Citv Attornev. Second by Councilperson Lloyd. After discussion, Councilperson Gay amended his motion to read "approve Resolution 86-18 as amended by the Citv Attornev". Second by Councilperson Lloyd. The motion carried, 9 ayes and 0 nays. The Mayor called a three-minute recess, and after reconvening, item 12 was addressed. 12. Workshop Item: Discussion of Management Options for Golf Course. Director of Parks and Recreation Stan Sherwood addressed Council regarding maintenance and management of the golf course, and introduced Mr. Ken James of American Golf Association, who addressed Council and presented slides of some of the golf courses under his company's management. 13. Administrative Reports: The City Manager inquired of Council if they would prefer to cancel the Council orientation that has been scheduled, or if they would prefer to wait until a new City Manager comes on board to hold the orientation. It was generally agreed that the orientation was needed, and it was decided that perhaps some sort of breakfast meetings could be scheduled on a regular basis for discussions. 14. Council Action: Councilperson Skelton and Mayor Malone brought items to Council's attention. 15. Council adjourned into executive session on personnel, regarding review of City Manager qualifications, at 9:30 P.M., and reconvened at 10:12 P.M. • Minutes, Regular Meeting, La Porte City Council June 23, 1986, Page 7 16. There being no further business to come before the Council, the meeting was duly adjourned at 10:12 P.M. Respectfully submitted: Cherie Black City Secretary Passed & Approved this the 14th day of July, 1986 Norman Malone, Mayor • PREFACE • The City Council is asked to review the following condemnation ordinances: 517 S. 4th St. - Ord. 41426 10802 N. "H" St. - Ord. 441455 10716 N. "H" St. - Ord. 441456 214 W. "B" St. - Ord. 461460 401 N. 5th St. - Ord. 461484 The City staff recommends the Council defeat the ordinance condemingi 10802 N. "H" St. - Ord. 461455 10716 N. "H''' St. - Ord. 461456 517 S. 4th St. - Ord. 461426 as there has been satisfactory progress made toward BOCA Code compliance. The City staff recommends the Council table the following properties for an additional 120 days as the houses are near compliance with the BOCA Code. 214 W. "B" St. - Ord. 461460 401 N. 5th St. - Ord. 461484 CITY COUNCIL AGENDA ITEMS T0: City Manager FROM: City Secretary DATE: (/19/86 REQUEST FOR CITY COUNCIL AGENDA ITEt4 1. Agenda Date Requested: 6-23-86 2. REPORT; RESOLUTION; X ORDINANCE 3. PROJECT SUMMARY: Ordinance closing approximately 225 feet of Montana Street at .the request of La Porte Assemly of God Church 4. ACTION REQUIRED: Adopt Ordinance 1495- 5. ALTERNATIVE: Do not adopt Ordinance 6. RECOMMENDATION: Adoption of Ordinance 7. EXHIBITS: Ordinance 1495 and applicable backup material 8. AVAILABILITY OF FUNDS: General Fund Water/Wastewater Capital Improvement General Revenue Sharing Other 9. ACCOUNT NUtdBER: FUNDS AVAILABLE: _YES _NO TYPE NAM IPd Cherie Black REQUESTED BY: ~ ~ /] i 10. APPROVED FOR CITY COUNCIL AGENDA Jack Owen DATE CITY MANAGER'S OFFICE Ordinance No. 1502 AN ORDINANCE RELATING TO RATES TO BE CHARGED BY HOUSTON LIGHTING & POWER COMPANY FOR ELECTRIC UTILITY SERVICE WITHIN THE CORPORATE LIMITS OF THE CITY OF LA PORTE, TEXAS; CONTAINING FINDINGS AND PROVI- SIONS RELATED TO THE SUBJECT; PROVIDING FOR A REPEALER AND FOR SEVER- ABILITY; AND FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW. WHEREAS, on or about March 18, 1986, Houston Lighting & Power Company (the "Company"), filed with the City of La Porte a Statement of Intent and Petition for Authority to Change Rates relating to electric utility service, and proper notice thereof was duly given; and WHEREAS, by Ordinance No. 1496, the City Council suspended the effective date of such proposed rate increase until April 14, 1986; and WHEREAS, the City Council, having considered the Company's rate increase at a public hearing for which proper notice was duly given, finds that such request is excessive; and WHEREAS, the City Council having original jurisdiction over the matter finds that a lesser increase in rates should be prescribed for the Company; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council of the City of La Porte hereby finds the requested rates of the Company to be excessive and unreasonable. Section 2. The City Council hereby approves and adopts the rates, adjustments, and determinations set out in Exhibit "A", attached hereto and incorporated herein for all purposes, and additionally finds and determines the following: I. Findings 1. Cost of Service The revenue requirement of the company is $3,087,698,000.00. Adjustments were made to Operations & Maintenance Expenses, Fuel Expenses, Purchased Power, Depreciation Expense, Other Taxes, Federal Income Taxes, and the Return component. • • Ordinance No. 1502 Page 2 a. Operations and Maintenance Expenses Adjustments to the Company's Operation and Maintenance Expenses amounted to $45,097,000.00. The major adjustments in- clude a reduction in Salaries and Wages expense of $4,618,000.00, a reduction of Limestone Operating Expenses of $1,889,000.00, a reduction in Municipal Street Use Fees of $7,696,000.00, a reduction in Rate Case Expenses of $1,059,000.00, elimination of EEI dues of $331,000.00, a reduction in Gas Operation and Maintenance Expense of $9,464,000.00, and a reduction for Non- Recurring Maintenance of $8,550,000.00. b. Fuel Expenses and Purchased Power The adjustment of Fuel Expenses is a reduction of $136,181,000.00. The adjustment to Purchased Power is a reduction of $40,961,000.00. The Overall Fixed Fuel FActor per KWH is $0.020386, the Distribution Level Fixed Fuel Factor per KWH is $0.020854, and the Transmission Level Fixed Fuel Factor per KWH is $0.019713. c. Depreciation The total adjustment to Depreciation Expense is a reduction of $13,835,000.00. d. Other Taxes The total adjustment for all Taxes Other than Federal Income Taxes is a net reduction of $5,013,000.00. e. Federal Income Taxes The adjustment to the Cost of Service for Federal Income Taxes is a reduction of $65,507,000.00. f . Return The rate of return on equity is 14.75 percent. The rate of return on invested capital is 11.58 percent. 2. Invested Capital The invested capital is determined to be $4,764,986,000.00 • Ordinance No. 1502 Page 3 3. Adjustments to Invested Capital The adjustments to invested capital include a reduction of $5,496,000.00 in Plant in Service, an increase of $1,243,000.00 in Construction Work in Progress, a reduction of $2,713,000.00 in Fuel Oil Inventory, a reduction of $82,702,000.00 in Working Cash Allowance, a reduction of $64,625,000.00 in Deferred Lime- stone Cost, a reduction of $8,880,000.00 in Unrecovered Storm Loss, a reduction of $29,878,000.00 in Deferred taxes, and a reduction of $5,280,000.00 in Other Cost-Free Capital. 4. Revenue Deficiency The overall non-fuel revenue deficiency is $159,759,000.00. 5. Rate Structure a. Residential The rate structure for the residential customer class is: Summer: Customer Charge of $9.00 per month, which includes 250 kwh all kwh over 251 kwh at 6.2460 per kwh plus: fuel charge of 2.0854 per kwh for all kwh Winter: Customer Charge of $9.00 per month, which includes 250 kwh 251-1,000 kwh at 6.2460 per kwh over 1,000 kwh at 2.9655 per kwh plus: fuel charge of 2.0854 per kwh for all kwh b. All Other Customer Classes The rate structure for all customer classes other than residential is that proposed in the Company's Statement of Intent and Petition for Authority to Change Rates. II. Related Issues 1. The City Council hereby authorizes the Company to utilize the following deferred accounting treatment for certain expenses related to Limestone Unit 2: Beginning on the commercial in-service date as defined by the Public Utility Commission of Texas ("commercial in-service date") for Limestone Unit 2 and continuing for a period of time ending eighteen (18) months after that in-service date or upon the • • Ordinance No. 1502 Page 4 effective date of rates set as a result of the Company's next filed statement of intent to change rates, whichever ending date is sooner, the Company may place into a deferred account all depreciation expense, tax expense, and operation and maintenance expense incurred during that time period by the Company related to Limestone Unit 2, and upon review, approval, and adjustment of such deferred expenses by the City inthe proceeding considering the Company's next filed statement of intent to change rates, these deferred amounts shall be amortized over a period of ten (10) years from the commercial in-service date of Limestone Unit 2. The City Council hereby orders the Company, upon the commercial in-service date for Limestone Unit 2, to transfer its total investment in Limestone Unit 2 from Construction Work In Progress to Plant in Service. The City reserves the right to exclude from rate base or other recovery any portion of the expenditures from the plant, AFUDC, capitalized expenses, capitalized depreciation or other capitalized costs related to Limestone Unit 2 that the City determines is not used and useful, has been imprudently spent or incurred, or is in any other way not lawfully includable in rate base or other recovery. The City further reserves the right to determine the reasonableness and prudence of any deferred expenses in the rate order in which rate base treatment for Limestone Unit 2 is requested. The City Council finds that all of the Company's investment in Limestone Unit 2 as of December 31, 1985, is presently in rate base as Construction Work in Progress. The City Council hereby orders that the Company shall not, after the date of final passage of this ordinance, accrue any AFUDC on any Limestone Unit 2 investment. 2. The City Council hereby orders the Company, after the date of final passage of this ordinance, to include in reconcilable fuel expense for any fuel purchased form an affiliate only fuel prices at cost, and to exclude any returns on or of equity. • • Ordinance No. 1502 Page 5 3. The City has incurred expenses for the purpose of conducting investigations, presenting evidence, advising and representing the governing body, and assisting with litigation in connection with the request of the Company to change its rates. The Company shall reimburse the City for the reasonable costs of such services pursuant to Section 24(a) of the Public Utility Regulatory Act, TEX.REV.CIV. STAT.ANN. art. 1446c (Vernon Supp. 1986). The Mayor shall forward to the Company an invoice or invoices for such costs together with a request for reimbursement. The Company shall reimburse the City for such costs incurred within thirty (30) days after having received each such request. III. Conclusions 1. The City has original jurisdiction over this case pursuant to Section 43 of the Public Utility Regulatory Act. 2. The Company has the burden of establishing its revenue deficiency under its present rates and of establishing the amount of such deficiency that will be collected under its proposed rates pursuant to Section 40 of the Public Utility Regulatory Act. 3. The rates prescribed herein will allow the Company to recover its operating expenses together with a reasonable return on its invested capital, pursuant to provision of Section 39 of the Public Utility Regulatory Act. 4. The rates prescribed herein will permit the Company a reasonable opportunity to earn a reasonable return upon the invested capital used and useful in rendering service to the public over and above its reasonably necessary operating expenses as provided by Section 39(a) of the Public Utility Regulatory Act. 5. The rates for electric service set forth herein provide just and reasonable and not unreasonably preferential, prejudicial, or discriminatory rates, and are sufficient, equitable, and consistent in application to each class of consumer, as provided by Section 38 of Ordinance No. 1502 Page 6 the Public Utility Regulatory Act. i Section 3. The City Council hereby determines, prescribes, establishes and authorizes the increased rates for sale or supply of electric service by the Company within the corporate limits of the City of La Porte as set out in this ordinance. Such increased rates shall become effective as to each customer on or no later than the thirtieth day after the date of final passage of this ordinance. The Company shall be authorized to collect such rates until such time as they may be changed, modified, amended or withdrawn in accordance with applicable statutes and ordinances. Section 4. The City Council hereby authorizes and directs the City Secretary to serve the Company with a certified copy of this ordinance which is the final determination and order of the City. Section 5. The Company shall, within ten (10) days following final passage and approval of this ordinance and thereafter whenever required by applicable statutes and ordinances and whenever requested by the City Manager, file a complete schedule of rates and tariffs with the City Manager setting forth all of the Company's rates and charges for utility service then in effect. The City Manager is authorized to review, approve and require revisions to the tariff if he determines it not be in accordance with this ordinance. Section 6. Nothing contained in this ordinance shall be construed now or hereafter as limiting or modifying, in any manner, the right and power of the City under the law to regulate the rates and charges of the Company. Section 7. All ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 8. In the event that the Company appeals from this order setting electric rates for the Company, the City hereby waives • Ordinance No. 1502 Page 7 written notice of the hearing before the Public Utility Commission of Texas on such appeal. With respect to any such appeal, the City Council hereby authorizes the City Attorney or his designees to represent the City and its citizens in any and all matters in connection with such appeal and to take any and all actions necessary and incidental thereto and to the resolution of the matters subject to such appeal, all as may be in the best interests of the City. Section 9. If any provision, section, subsection, sentence, clause, or phrase of this ordinance, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of this ordinance or their application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any other portion hereof, and all provisions of this ordinance are declared to be severable for that purpose. Section 10. 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, TEX.REV.CIV.STAT.ANN. art. 6252-17 (Vernon Supp. 1986); 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. • ~- Ordinance No. 1502 Page 8 PASSED this ~~ _ day of , A.D. 1986. APPROVED this ~~ day of , A.D. 1986. ~~ Norman Malone, Mayor of the City of La Porte ATTEST: City Secretary • • Docket No. 6765 APPLICATION FOR HOUSTON X PUBLIC UTILITY COMMISSION LIGHTING & POL7ER COMPANY X OF TEXAS FOR AUTHORITY TO CHANGE RATES STIPULATION TO THE HONORABLE PUBLIC UTILITY COMMISSION OF TEXAS: WHEREAS, Houston Lighting & Power Company (HL&P) on March 18, 1986 filed ari application for Rate Relief that is the subject of this docket: and WHEREAS, on March 18, 1986 HL&P also made a filing for rate relief with the City of La Porte (the City); and WHEREAS, The City ordinance on April 14, 1986 denied HL&P's application; and W:~iEP.EAS, HL&P has appealed the action of the City to this Conulission, where the appeal has been consolidated with this docket; acid WHEREAS, the City is now in agreement that rates adopted by the City of Houston in its Ordinance No. 86-984 on June 18, 1986 are just and reasonable; NOW, THEREFORE, HL&P and the City, through their undersigned representatives, hereby agree and stipulate as follows: I. HL&P and the City stipulate and agree to the dismissal of HL&P's appeal from the rate action of the City. II. HL&P agrees to file, and the City agrees by necessary action of its City Council to approve,~rate schedules identical to those filed with the City of Houston pursuant to Ordinance No. 86-984. ~- i -z- III. HL&P and the City agree that the above referenced rate schedules will be effective for all electric service taken within the City from and after the final action of the City Council approving such rate schedules. IV. It is recognized and agreed between HL&P and the City that they do not by filing this stipulation express agreement or concurrence with any specific methodology for setting rates and that this stipulation is made and filed solely for the purpose of settling and compromising HL&P's appeal from trhe action of the City. EXECUTED THIS ~1~'~ DAY OF ~ ~! G ~ `~' , 1986 by the under- signed, each of whom covenants that he/she has full authority ~to enter into and bind the entity he/she represents to this stipulation. HOUSTON LIGHTING & POWER COMPANY 14 7T~'/<N E i f CITY OF LA PORTE ~- Norm Malone, Mayor ATTEST: City Secretary DOCKET NO. 6765 • APPLICATION OF HOUSTON § PUBLIC UTILITY COMMISSION LIGHTING & PO~AER COMPANY § OF TEXAS , FOR AUTHORITY TO CHANGE RATES § JOINT MOTION TO DISMISS APPEAL TO THE HONORABLE PUBLIC UTILITY COMMISSION OF TEXAS: On March 18, 1986 Houston Lighting & Power Company (HL&P) filed with the City of La Porte (the City) an Application to Change Rates identical to the application filed with this Commission and designated as Docket No. 6765. Subsequently on April 14, 1986 the City voted to deny HL&P's application. HL&P took a timely appeal pursuant to §26 of the Public Utility Regulatory Act. Pursuant to Examiners' Order No. 5 that appeal has been consolidated into this docket. HL&P and the City have reached an agreement set forth in the stipulation attached hereto as Attachment A. The stipulation calls for HL&P to file, and the City to accept, rate schedules identical to those approved by the City of Houston in Ordinance No. 86-984 enacted June 18, 1986. Pursuant to the Stipulation HL&P and the City have agreed to move jointly for dismissal of HL&P's appeal from the City's original rate action. WHEREFORE, premises considered, HL&P and the City respectfully request that the Commission dismiss HL&P's appeal from the City's rate action. • ~ -2- Respectfully submitted, Attorney for Houston Lighting and Power Company Attorne or ity of ba P e Jo D. rmst ong 702 W. airmont Parkway P.O. Box 1218 La Porte, Texas 77571 (713) 471-1886 State Bar of Texas No. 01321100 * ~ SCHEDULE 1 CITY OF HOUSTON HOUSTON LIGHTING E POKER COMPANY REVENUE REQUIREMENT TEST YEAR ENOEO DECEMBER 31, 1985 (OOO~s) LINE HLEP CITY CITY N0. DESCRIPTION PER BOOKS ADJUSTMENT - REpUEST ADJUSTMENT RATE ORDER ---- 1 ---------- ~ OPERATION ANO MAINTENANCE --------- =594,576 ---------- =11,114 =605,690 (=45,097•) =560,593 2 fUEI 1,420,262 (432,108) 988,154 (136,181) 851,973 3 ~ PURCHASED POKER 442,802 96,454 539,256 (40,961) 498,295 4 DEPRECIATION 177,099 33,488 210,587 (13,835) 196,752 5 OTHER TAXES 140,185 16,507 - .156,692 (5,013) 151,679 6 INTER ON CUSTOMER DEPOSITS 0 0 2,302 (0) 2,302 7 FEDERAL INCOME TAXES 262,557 77,439 339,496 (65,507) 274,489 8 RETURN - 495,883 121,940 - 617,823 (66,209) 551,614 9 RE YENUE REQUIREMENT 53,533,364 (=75,166) =3,460,500 (=372,802) :3,087,698 /////////// /////~//~~ ////N/YY EXHIBIT A PAG~_ OF_L~ . L~ SCHEDULE 2 CITY OF HOUSTON HOUSTON LIGHTING E POMER COMPANY CALCULATION OF INCREASE TEST YEAR ENOED OECENBER 31, 1985 (000':) lI NE N0. DESCRIPTION 1 -REVENUE REQUIREMENT 2 LESS: FUEL REVENUES 3 MUNICIPAL STREET USE REVENUES 1 OTHER REVENUES 5 BASE RATE REYE NUE REQUIREMENT 6 INCREASE IN BASE RATE REVENUES HLCP CITY CITY REpUEST AOJUSTNENT RATE ORDER =3,460,500 (:372,802) =3,087,698 (1,265,810) 177,158 (1,088,652) (80,117) 9,064 (71,048) (25,090) (1,241) (26,331) =2,089,183 (=187,816) =1,901,667 TEST YEAR AS ADJUSTED =3,500,255 (1,651,171) (84,587) (22,589) =1,741,908 =159,759 i EXHIBIT A PAGE.,r~ OF.~ • SCHEDULE 3 CITY OF HOUSTON HOUSTON LIGHT ING E POrER COMPANY OPERATIONS E MAINTENANCE EXPENSE ADJUSTMENTS TEST YEAR ENDED DECEMBER 31, 1985 ( DOD's) II NE HLEP CITY CITY N0. DESCRIPTION PER BOOKS AD JUSTMENT REQUEST ADJUSTMENT R ATE ORDER 1 SALARIES E PAGES :226,420 =14,104 =241,021 (=4,618) =236,406 2 EMPLOYEE BENEFITS 29.511 (488) 24,023 (816) 28,207 3 LIMESTONE OPERATING EXPENSES 152 12,330 12,482 (1,889} 10,593 4 STORM DAMAGES 2,076 (702) 1,374 O 1,374 5 STORK DAMAGES-5179 238 996 1,234 O 1.234 6 MUNCIPAL STREET USE FEES 98,711 (19,967) 78,744 (7,696) 71,048 7 RATE CASE EXPENSES 498 757 1,255 (1,059) 196 B EEI DUES 414 (83} 331 (331) 0 9 R E O 11,721 1,058 1?,719 0 12,779 10 AMORT. OF OTHER DEF. CHARGES 204 0 204 0 204 11 MANAGE NE NT AUDIT 0 978 978 (652) 326 12 IEASE AMD RENTAL 5,408 278 5,686 (318) 5,368 13 UNCOIIECTIBIE ACCOUNTS 14,419 902 15,321 (947) 14,374 14 ADVERT., CONTR. E DON. 2,803 784 3,587 (13) 3,574 15 LEGISLATIVE ADVOCACY 4 (9) 0 0 0 16 SOCIAL ODES 25 (25) 0 0 0 i7 POYER rHEELING 8,677 (6,855) i,e22 (197) 1,625 18 AMORT. OF LIMESTONE DEF. CHRGS 0 7,056 7,056 (7,056) 0 19 OTHER OEM EXPENSES 192,790 0 192,190 0 192,790 20 REDUCTION IN GAS OEN EXP. (9,464) (9,464) 21 KEY BILLING PROCEDURES (255) (255) 22 ADO'l. LEGISIATIYE ADVOCACY (17) (17) 23 UNSUPPORTED E EXCESSIVE OFF ICER EXP. (85) (85) 24 LEASE E RENTAL EXPENSES (51) (51) 25 FUEL REFUND COSTS (248) (248} 16 MAIAKOFF EXP. i0 CYIP (16) (16) 27 STP A2 EXP. RECLASS. 10 RATE CASE EXP. (100) (100) 28 NON-RECURRING MAINIENANCE (8,550) (8,550) 29 AFFILATE CHARGES (538) (538) 30 EMPLOYEE STORE EXPENSES (181) (181) TOTAL EXPENSES =594,576 =11,114 =605,690 (=15,097) j560,593 EXHIBIT A PAGE~_ OF ~.~. ~. r SCHEDULE 4 CITY OF HOUSTON HOUSTON LIGHIIMG E POMER COMPANY SUMMARY Of FUEL COSTS TEST YEAR ENOEO DECEMBER 31, 1985 (000's) LINE N0. DESCRIPTION FUEL EXPENSE 1 RECOYERABIE COSTS 2 BASE RATE FUEL 3 iOTAI FUEL PURCHASED POMER 4 -------------- RECOVERABLE COSTS S BASE RATE PURCHASED POMER 6 TOTAL PURCHASED POIIER 7 TOTAL FUEL ANO PURCHASED POMER 8 BASE RATE FUEL 9 FUE l RE YE NUE HLEP REpUEST CITY ADJUSTMENT CITY RATE ORDER =875,322 112,832 988,154 390,488 148.768 539,256 =1,527,410 =261,600 =1,265,810 (=121.279) (14,902) (136,181) (55.879) 14,918 (10.961) (:177.142) =16 (=177,158) =754,043 97.930 851,973 331,604 163.686 498,295 :1,350,268 =261.616 =1,088.652 i EXHIBIT A PAG ~ Ofd • SCH EDULE 5 CITY OF HOUSTON HOUSTON LIGHTING E POMER COMPANY INVESTED CAPITAL AND RETURN TEST YEAR ENDED DECEMBER 31, 1985 (DOD's) LINE HLEP CITY CITY N0. DESCRIPTION REQUEST ADJUSTMENT RATE ORDER i PLANT IN SERVICE 15,915,823 (55,496) =5,910,327 2 aCCUMULATED DEPRECIATION 1,201,576 0 1,201,576 3 NET PLANT 4,114.247 (5,496) 4,708,751 4 CONSTRUCTION IN PROGRESS 676,830 1,243 678,073 5 PROPERTY HELD FOR FUTURE USE 3,613 (518) 3,095 6 HUCLE AR FUEL 118,181 (60,370) 57,811 7 FUEL OIL INVENTORY ~ ~ 17,478 (2,713) 14,765 8 MORKING CASH ALLOMANCE 44.454 (82,702) (38,248) 9 MATERIALS AND SUPPLIES 56,662 0 56,662 10 PREPAYMENTS 15,058 (308) 14,750 11 DEFERRED LIMESTONE CHARGES 64,625 (64,625) 0 12 UNRECOYEREO STORM LOSSES 8,880 (8,880) 0 13 DEFERRED TAXES (601,625) (29,878) (631,503) 14 PRE-1971 INVESTMENT TAX CREDI T (8,302) 0 (8,302) 15 CUSTOMERS DEPOSITS (32,538) 0 (32,538) 16 CUSTOMER ADVANCES FOR CONSTR. (15,891}~ 0 (15,891) 17 RESERVE FOR INJURIES (5,597) 0 (5,597) 18 OTHER COST FREE CAPITAL (33,562) (5,280) (38,842) 19 INVESTED CAPITAL =5,024.513 (=259,527) =4,764,986 ~~~~~~~~~~~ ~~f~/~~~~~~ ~~~1~~~~~~~ 20 RATE OF RETURN 12.30x -0.72X ~~~~~ 11.582 ~~~~~~A~Y 21 RETURN ~~~~~~~~~~~ :617,823 ~~~~~~ (=66,209) =551,614 EXHIBIT A pn~E 5 of.1~. • i SCHEDULE 6 CITY OF HOUSTON HOUSTON LIGHTING E POKER COMPANY (000's) SUMMARY OF CASH NORKING CAPITAL MULTIPLIER CASH NORKING RECONNENOEO (LE AO)/LAG (LEAD)/LAG OAYS CAPITAL YORKING CAPITAL USES AMOUNT DAYS /365 OAYS REOUIRENENT ---------------q---- ------~---~---------------- Rtvenue Re uireaent S3 087 698 36.25 0.0993 =306,655 MORKING CAPITAL SOURCES Fuel 851 973 (29.17) (0.0807) (=68,784) Purchased Porer 198,295 ~ (37.50) f (0.1027) (51,195) Other OEM 560,593 (17.51) (0.0481) (26,946) Federal Incoae Ta:es 160,139 (99.91) (0.2737) (43,834) Other Ta:es 99,107 (180.54) (0.4946) (49.169) Interest 217,571 (86.13) (0.2360) (58.418) Preferred Dividends 29,391 (46.13) (0.1264) (3,715) ESTIMATED CAPITAL TO FINANCE THE NET LE AO IN RECOVER OF COST OF SERVICE 4'594 Cash Coaponant 1,636 Municipal Franchise Fees 71,048 (228.50) (0.6260) (44,478) CASH YORKING CAPITAL REOUIRENENT (=38,248) ~~~~~~Y~~~N~~ EXHIBIT A PAG ~ ~ OFJ.r~ f` W a 0 W s u ti .., a U Y.. y N u U J+ ti a c: L 01 3 V a .~ rnw i v '•+ V ~ V t `'' rn .,, J >` G N J u r+ II i6 II ~ II •.• u an ~u U II :~ ii :C X X m -. p c0 Y- U ~ S T II V7 ~' u + Q u M ~ ~ ~ - ii ~, .w u v o n 3 U 11 w .. rr .. x x x x s n m ii n o n U I1 m m d -~ .. ., w n o n x x- x x x 11 '' y ~ 7 ~ 1 ~ ;a II L 1 • >`. II II . GI r+ II M Y7 fq P 11 v urn s ~ `~ L +~ II '" 01 u II a 1- u R V ~ V U V ~ V d V d B ^ 1 ~ ~ ~ m I ~ n s ro s a n I'7 a I: .; Yi s u m rt II 0~ s tU [~ 11 Y7 1z u ~o M r a H t~~ ~ +~ u . N t~J H ~ ,~ ~- H +~ s .~ u ~ ~~ ~. yi J.1 D N •~+ ~ II = 'O ~ II i 01 Itl 41 11 01 11 F- L ~ a ii an - ~+ II L 01 c U 4 !! u ~~ ~ U a ! a =~ ti N ~: r EXHIBIT A PAGE OF ~.~ L_J V i6 fJl V r IY ' `` T .,. .; .; .; m .: r~i Y~ o, d aI •~ al a m rr. oI rT IA f71 aI rn a aaa ; aa : v ~~~ :v ~~~ a ~v a .1 d .t V ~t ~? .T ! 1 I ~ ! 1 1 rrJ` ~~~ 01 ~ ~ ~ IA ~ » COO i O C O S i = V ~ _ _ a H ."'1 III H H M C ~ r x tr ~ r= ti~ U7 OI+- ~ • • CITY OF HOUSTON HOUSTON IIGHTIN6 S POKER COMPANY (000's) REVENUE BY RATE CLASS - PER CITY RATE ORDER test Year Ending Dece~ber 31, 1985 Line No. RATE CLASS 1 RS - RESIDENTIAL SERVICE 2 NGS - NISCEILANEOUS GENERAL SERVICE 3 lGS - LARGE GENERAL SERVICE 4 LOS-A - LARGE OVERHEAD SERVICE (A) 5 LOS-8 - LARGE OYERt1EA0 SERVICE (B} 6 TNP - TEXAS-HEM MEXICO POKER COMPANY 7 IS - INTERRUPTIBLE SERVILE 8 SPL = STREET AND PROTECTIVE LIGHTING SERVICE 9 GL - GUARD LIGHTING SERVICE 10 TOTAL ELECTRIC REVENUES 11 OTHER OPERATIN6 REVENUES 12 TOTAL OPERATING REVENUES EXHIBIT A PAGE OF.~. SCfiIDULE 8 CITY RATE OROER =1,153,131 799,810 470,565 160,990 326,200 58,948 60,)68 25,394 1,284 3,057,090 30,608 =3,087,698 SCEIEDULE 9 It is determined that Sheet No. E1, Terms and Conditions for Sale fo Electric Service in Section V, Service Rules and Regulations, of the Company's Tarriff for Electric Service shall read as follows: "Section V-Service Rules and Regulations Sheet No. E1 Terms and Conditions for Sale of Electric Service Page 1 of 4 HOUSTON LIGHTING & POWER COMPANY HL&P 90 TERMS AND CONDITIONS FOR THE SALE OF ELECTRIC SERVICE APPLICABLE TO RATE SCHEDULES RS, RTD, MGS, LGS, LOS, ISA and ISB 1: Electric service will be supplied in accordance with these terms and conditions (as supplemented by the Company's Service Standards and Service Rules and Regulations which are by reference incorporated herein), and any changes required by law, and in accordance with such applicable rate schedule or schedules as may, from time to time, be established by the Company. However, in the case of Customers whose electrical service requirements are of unusual size or characteristics, additional rate and contract or service arrangements may be required. These terms and conditions constitute a selected list of rules from the Company's Service Rules and Regulations. Upon request, Customer may obtain at any Company office information on Company's policies regarding the extension of service, .refusal to serve, service discontinuance, Customer credit, billing and metering. 2. Company will make reasonable provisions to supply steady and continuous electric service, consistent with the- Customer's class of service, but does not guarantee the electric service against fluctuations or interruptions. Company will not be liable for any damages occasioned by fluctuations or interruptions unless it be shown that Company has not made reasonable provisions to supply steady and continuous electric service, consistent with the Customer's class of service, and in the event of a failure to make such reasonable provisions Company's liability shall be limited to the cost of necessary repairs of physical damage proximately caused by the service failure to those electrical facilities of Customer which were. then equipped with the protective safeguards recommended or required by the then current edition of the National Electrical Code. In no event shall Company be liable for damage occasioned by fluctuations or interruptions or failure to begin supplying electric service, caused by an act of God, the public enemy, unavoidable accident, fire, explosion, strike,~~riot,.war, order of any court or judgment granted in any bona fide adverse legal proceeding, or action or .order of any commission or tribunal having jurisdiction in the premises, or, without limitation by the preceding enumeration, any act or thing reasonably beyond its control, or for interruptions (when Customer has been given reasonable notice) which are necessary for inspection, repair or changes in Company's generating equipment or its transmission or distribution system. Company may, without liability. therefor, interrupt service to any Customer or Customers in the event of an emergency arising anywhere on the interconnected system of which it is a part, which emergency poses a threat to the area power supply if, in its sole judgment, such action may prevent or alleviate the emergency condition. 3. For the mutual protection of the Customer and the Company, only.~authorized employees of the Company are permitted to make and energize the connections between the Company's service wires and the Customer's service entrance conductors. The Company does not assume any duty of inspecting the Customer's lines, wires, switches or other equipment and will not be Revision Number: 8th Effective: IT IT tXNIBiT A P,~cE. 9 ~ . oF..~. Section V-Service Rules and Regulations Sheet No. E1 Terms and Conditions for Sale of Electric Service Page 2 of 4 HOUSTON LIGHTING & POWER COMPANY HL~P 90 responsible therefor. To the extent allowed by law, the customer agrees to defend, indemnify and hold Company and its agents harmless from and against all claims, causes of action, liability, the losses, costs and expenses of any kind for personal injury, death and property damage arising out of or resulting (a) from the design, installation, operation or maintenance of the lines, wires, switches or other equipment on the Customer's side of the point of delivery or (b) from energiZation by the Customer of the Company's lines through operation of equipment within the Customer's control without 24 hours advance notice to the Company's dispatcher. The obligation to indemnify pursuant to (a) and (b) shall apply without regard to the negligence of the Company or its agents if the negligence of both the Customer and the Company or their respective agents were proximate causes of such personal injury, death or property damage, but shall not apply when proximately caused by the sole negligence of the Company or its agents. 4. The Company will supply to one premises only one point of delivery and only one of the standard types of service listed in the Service Standards or one of the available transmission voltages, and Customer's installation is to be so arranged that the Company can measure the Customer's electric service with one meter. The Company will not install and maintain any lines and equipment on the Customer's side of the point of delivery except its meter. The Customer will provide, in accordance with the Company's Service Standards and free of expense to the Company, locations for the installation of the Company's meter and other equipment and acceptable right of way for facilities erected solely to make service available to Customer. The Customer will install and maintain all his wiring and apparatus in accordance with good electric practice, all applicable lawful regulations, and in such condition and manner as not to endanger persons or property, or to cause impairment of the Company's service to the Customer, or its other customers; and the Customer will obtain all necessary permits and certificates of inspection covering his electric installation. 'The Customer will not permit any other party to use the service supplied to the Customer by the Company, or extend or connect his installation to lines aEross or under a street, alley, lane, court or other public or private space in order to obtain service for other premises, even though such other premises be owned by the Customer, except in the case of Customer owned street lighting installations. 5. Certain types of equipment used by Customers have electrical characteristics which may cause serious fluctuations of voltage and interfere with the service of the Company to its Customers. In such cases the Company may decline to serve such equipment under the Company's established rate schedules until the Customer having such equipment, has provided at his expense, suitable apparatus to hold to reasonable limits the effect of such fluctuations. Circumstances may require such equipment to be supplied separately from other service, and in such event, the Company may require additional contract arrangements and construction charges and may meter and bill such service separately from other service supplied to the Customer. Where the Customer owns generating equipment and proposes to operate this equipment in parallel with and concurrent Revision Number: 8th Effective: EXH161T A ~T PAGE 1 ~ OF_~. c ~ ~`~ ~_ Section V-Service Rules and Regulations Sheet No. E1 Terms and Conditions for Sale of Electric Service Page 3 of 4 HOUSTON LIGHTING & POWER COMPANY HL&P 90 with electric service supplied by the Company, the Customer must obtain consent from the Company. 6. The duly authorized representatives of the Company are to have access at all reasonable hours to the Customer's premises for the purpose of inspecting Company's wiring and apparatus, erecting, removing or replacing its facilities, reading its meter and for all other purposes connected with the supplying of electric service. Company will upon Customer's request test the accuracy of Company's meter used in the metering of Customer's service. Such test will be free of charge provided Customer has not requested a similar test within a period of four years or in any case if such meter is found to be not accurate within the accuracy standards established by the American National Standards Institute, Incorporated. The maximum charge for testing a residential Customer's meter shall be fifteen dollars (S15.00). Additional provisions of Company's Meter Policy, including re-billing, are contained in Company's Service Rules and Regulations. 8. The Company may require a deposit, if in accordance with Customer Credit Policy, the credit of an applicant for service has not been established satisfactorily to Company. For permanent residential, commercial and industrial customers, such deposit shall not exceed one-sixth (1/6) of the Customer's estimated annual billings. Company will pay interest on required deposits at an annual rate established in accordance with the provisions of Tex. Rev. Civ. Stat. Ann. art. 1440a (Vernon's Supp. 1985). For amounts held on deposit with the Company prior to January 1, 1986, the annual interest rate shall be 6X. For amounts held on deposit with the Company during calendar year 1986, the annual interest rate shall be 7.299'0. ~~/~`J~~1i1~9I/~~/~~~~~~Z/~~/f~~~R~/~~~X~li/Z~~~`~~/~,3~Y/~~ll~/~~/~`~~~~~~/!1~ ~l~~Pl~~,t,~/1~~/,~I~~~J~~~z/~~~i~~liz/~~/J~1~~~J~~~/ The Company reserves the right (subject to Customer Credit Policy) to require an additional deposit, when in accordance with Public Utility Commission rules, the Customer's deposit is insufficient. Any deposit shall not preclude the Company (subject to Service Discontinuance Policy) from terminating the .Agreement for Service or suspending the supply of electric service to the Customer for any failure in the performance of the Customer's obligations under the Agreement for Service. Additional provisions of Company's Customer Credit Policy are contained in Company's Service Rules and Regulations. 9. Charges for electric service will normally be based on a monthly period of approximately 30 days but not more than twelve (12) bills shall be rendered in any yearly period. 10. In the event Customer's service under this Agreement is suspended (such suspension being subject to Company's Service Discontinuance Policy) because of tampering wi#.h Company's meters, bypassing the same, failure to Revision Number: g th EXN181T A Effective: ID PAGE OF_.I.~ r""~~ ~"~ ~v! '~ _~ Section V-Service Rules and Regulations Sheet No. E1 Terms and Conditions for Sale of Electric Service Page 4 of 4 HOUSTON LIGHTING & POWER COMPANY HLb.P 90 pay a delinquent account, failure to comply with deposit or guarantee arrangements (when required by Customer Credit Policy), or, if a reasonable opportunity to remedy the situation, violation of Company's rules pertaining to the use of service in a manner which interferes with the service of others, endangers persons or property, or is due to the operation of nonstandard equipment, all guarantees, minimums and other contract charges for the remainder of the term of the Agreement shall thereupon become due and payable by Customer. Company agrees to accept such sum as and for liquidated damages for such losses as Company may suffer by reason of Customer's breach of the Agreement. An LOS Customer shall have, as an alternative, the right to make payment of such charges or billings as they fall due under the terms of the LOS agreement; provided, however, in the event such LOS Customer shall fail to pay any such charge or billing in a timely manner, Company may then, at its option, require payment of all charges or billings in their total sum for the unexpired term. . 11. Upon the expiration of an Agreement for Service, the Company may, without liability for injury or damage, dismantle and remove all facilities installed for the purpose of supplying electric service to the Customer, and shall be under no further obligation to serve the Customer at the point. 12. Agreements for Service shall inure to the benefit of and be binding upon the successors and assigns of the Customer and the Company, but no assignments by the Customer shall be binding upon the Company until accepted in writing by the Company. " EXH! BIT A PAGELa- oF..L~ PREFACE ~1 LJ The City Council is requested to authorize Turner, Collie & Braden to provide inspectional services under Section II. E. 11 of Special Services in accordance with Section III of the Agreement for Engineering Services dated June 20, 1984. Progress can not be made on the wastewater treatment plant or the Fairmont Parkway Relief Sewer until inspectional services are provided. The maximum expense for these services is $240,000 over a 17-month construction period. The authorization shall require monthly progress reports and a fee summary report when the total project representative services reach approximately 60% of the authorized funding level. The report shall detail the expenditures of funds to that point, the funds remaining in the initial authorization, and the expected need for additional funds. Therefore, if necessary, adjustments in the level of personnel can be made during construction. The Administration recommends Council authorize Turner, Collie & Braden to provide inspectional services for the wastewater treatment plant and Fairmont Parkway Relief Sewer. t C~ CITY COUNCIL AGENDA ITEMS T0: Jack Owen FROM: Steve Gillette DATE: June 9, 1986 City Manager Acting Public Works Director REQUEST FOR CITY COUNCIL AGENDA ITEM 1. Agenda Date Requested: June 16, 1986 2. ~ REPORT; RESOLUTION; AGREEMENT; ORDINANCE 3. PROJECT SUMMARY: Provided inspectional service for wastewater treatment plant expansion and Fairmont Parkway relief sewer. Estimated maximum cost is $240,000 over a 17 month construction period. 4. ACTION REQUIRED: Council approval. 5. ALTERNATIVES: Have TC & B re-submit resumes of different personnel and start interviewing process over. Investigate other approaches. 6. RECOMMENDATION: Approval of Turner Collie & Braden request to provide inspectional services under Section II.E.11 of Special Services in accordance with Section III of Agreement of Engineering Services dated June 20, 1984. 7. EXHIBITS: Request for Authorization to provide Special Services - Turner Collie & Braden - attachment - budget. Memo: John Joerns to Jack Owen Revised project costs 8. AVAILABILITY OF FUNDS: General Fund Water/Wastewater ~ ~_ Capital Improvement General Revenue Sharing Other 006-800-807-130 9. ACCOUNT NUMBER: 006-800-808-1~0 FUNDS AVAILABLE: X YES _NO St e G' ett Jo Joe REQUESTED BY: 10. APPROVED FOR CITY COUNCIL AGENDA Jack Owen DATE City Manager TurnerCollie~Braden Inc. June 4, 1986 Mr. Jack Owen City Manager City of La Porte P. 0. Box 1115 La Porte, Texas 77571 H. CECIL ALLEN VICE PRESIDENT PO BOX 13089 HOUSTON, TEXAS 77219 5757 WOODWAY 713 780-4100 TELEX 774185 TCB HOU Re: La Porte Sanitary Sewer System Improvements Construction Phase Special Services - Project Representative Turner Collie & Braden Project No. 13-02000-034 Dear Mr. Owen: In accordance with Section III of the Agreement for Engineering Services dated June 20, 1984 for the above referenced project, we hereby request authorization to provide Special Services described in Section II.E.11 of said agreement. The Special Services requested are specifically for two Resident Project Representatives. We propose to designate Harold Brent, P.E. as the Chief Representative for the project. We estimate the cost of these Special Services shall be approximately $240,000 which is the amount stated in our April 30, 1984 letter transmitting the Agreement for Engineering Services. I have attached a breakdown of the $240,000 on Attachment "A". Should you have any questions, please give me a call. Very truly yours, "`''~ H. Cecil A11en, P.E. Project Director HCA:lf Attachment cc: John Joerns Attachment "A" ~ ~ 1 ~ ' ~~ La Porte Sanitary Sewer Improvements Cost for Project Representative A. Wastewater Treatment Plant 1) Project Representative Cost 17 months= (2946 hrs)($26.70/hr)(2.0) _ $157,316 2) Mileage = 26,000 miles @ $0.35 = 9,100 Subtotal $166,416 B. Fairmont Trunk Sewer 1) Project Representative Cost 12 months = (2080 hrs)($15.85/hr)(2.0) _ $ 65,940 2) Mileage = 19,800 miles @ $0.35 = 6,930 Subtotal $ 72,870 Total $239,286 ~~ PREFACE. The City Council is asked to review the proposals received for soils and materials testing for Wastewater Treatment Plant Expansion and Fairmont Parkway Relief Sanitary Sewer. Staff will provide a recommendation at the Monday, June 23, 198b, Council Meeting. ~ ~ CITY OF LA PORTE INTER-OFFICE MEMORANDUM T0: Jack Owen City Manager FROM: John Joe n Interim C ordinator DATE: June 19, 1 SUBJECT: Recommendation of Laboratory & Testing Consultants CLP ~~84-7151 Wastewater Treatment Plant & Relief Trunk Sewer The review of the proposals received for Laboratory & Testing Services has been more tedious than originally anticipated. The City of La Porte did not receive proposals based on a structured RFP. Therefore, the format and presentation varied from consultant to consultant making the evaluations somewhat complex. There are several well prepared proposals from very capable firms. There will be no problem in selection of a firm that can perform the necessary testing within our estimated budget of $25,000 - $30,000. However, there are some questions that I would like to have answered before making a final recommendation. I plan to communicate with several of the consultants by phone this afternoon. In reviewing the proposals, it was noticed that the fees for most of the laboratory services were very similar. Consequently, the final recommendation will be based on the consultants understanding of the requirements as evidenced by their proposals along with an evaluation of several significant incidentals (i.e. transportation charges, vehicle charges, minimum hours, etc.) and intangibles. I regret not having a full recommendation for Thursday's Council packet. I will have the necessary information compiled this afternoon and a recommendation available on Friday. JJ/tla xc: Steve Gillett ~ ~ CITY OF LA PORTE INTER-OFFICE MEMORANDUM TO: Jack Ow , City Manager DATE: FROi~i: Joh Jo , Com:nurlity Deveiopmert Director S ~~ a Gi tt, Acting Public Works Director SUBJECT: S ILS A MATERIAL TESTING RE: WASTEWATER TREATMENT PLANT EXPANSION FAIRMONT PARKWAY RELIEF SANITARY SEWER CLP # 84-7151 June 23, 1986 The City of La Porte has received proposals from five (5) firms to provide soils and materials testing for the above referenced projects. Because the proposals were not based on a structured RFP, the format and presentation varied from consultant to consultant, making the evaluations somewhat complex. It is important to note that the proposals provide an estimate of the scope of work and cost, based on the individual firm's interpretation of the plans and specifications. The actual scope of work will be determined as the projects progress, and the final cost will be determined by the actual number of each individual test, together with other significant incidentals. After careful review of the unit cost of individual tests, transporation charges, vehicle charges, minimum hours, together with the overall proposal in terms of understanding the scope of work, it is recommended that the City of La Porte accept the proposal submitted by McClelland Engineers, Inc., contingent upon receipt of correspondence to be received from McClelland Engineers agreeing to provide for 1/2 day vehicle charges. The proposal submitted by this firm falls well within the estimated budget of $25,000 - $30,000. If you should have any questions, please feel free to call. SG/lw n U PREFACE n LJ The City Council is requested to award the annual janitorial service for City Hall to All Purpose Maintenance. The first low bidder, Rainbolt Industries, is our current janitorial service and over the last year their service has been very unsatisfactory. All Purpose Maintenance is the second low bidder. Their references include Bayshore National Bank and BMW Dealership. The Administration recommends the City Council approve the annual janitorial contract with All Purpose Maintenance. 6 ~ J i INTER-OFFICE MEMORANDUM June 16, 1986 T0: Richard Hare - Assistant City Manager FROM: Tim Blackwell - Purchasing Agent q/~~~ SUBJECT: Sealed Bid ~~0152 - Janitorial Service for City Hall Advertised, sealed bids ~~0152 for an annual janitorial contract for City Hall were opened and read in Council Chambers on June 9, 1986 at 4:00 p.m. Bid invitations were mailed to five area janitorial service companies with the following four returning bids: (1) Dorothy's Maintenance Service, (2) All Purpose Maintenance, (3) Lee International Associates and (4) Rainbolt Industries. Low bid was submitted by our current janitorial service, Rainbolt Industries. Their attempt to clean City Hall over the last year is rated as very unsatis- factory. Second low bid was submitted by All Purpose Maintenance. After interviewing their references (Bayshore National Bank and BMW Dealership) and careful review of the bids, I recommend bid award to All Purpose Maintenance. / I trust that my recommendation wil]. meet with your approval. TB/mb Attachment: Bid Tabulation ,. . . o n _ (~ ~, ~~ Sealed Bid 4P0152 Rainbolt All Purpos~ Lee Dorothy's Industries Maintenanc Interna- Maintenanc Janitorial Service Agreement ~~ tional Service ~, Assoc. -_ .. 1. Monthly Janitorial Service for 925.00 963.00 1,650.00 880.00 City Hall 2. Additional charge .f or carpet -0- -0- -0- 180.00 cleaning Total 925.00 963.00 1,650.00 1,060.00 • PREFACE U The City Council is asked to review the bid pricing on street material: 1) cut back asphalt; 2) emulsions; 3) liquid asphalt cement; and 4) catalytically blown asphalt joint and crack filler. Exxon Co., U.S.A. provided the best price for cut back asphalt at a rate which averages 25% less than pricing under the current agreement. Exxon prices will fluctuate without prior notice and they reserve the right to refuse supply in the event price increases are not accepted by the buyer. Gulf States Asphalt, Inc. was the only respondent for emulsions and liquid asphalt cement. Prices on these items are lower than current agreement by 14% and 18% respectfully. Sheplers Equipment Co., Inc. agreed to continue furnishing catalytically blown asphalt joint and crack sealer at the 1985-86 price of $.25 per pound. The Administration recommends the City Council approve the bids as outlined above. ~~ ! ~ INTER-OFFICE MEMORANDUM June 4, 1986 T0: S. Gillett - Director of Public Works FROM: Tim Blackwell - Purchasing Agent~(~ SUBJECT: Sealed Bid l~0149 - Street Material 77 Advertised, sealed bids 40149 for Street Material were opened and read in City Council Chambers May 19, 1986 at 4 p.m. Sealed bid invitations were mailed to six area manufacturers and jobbers of liquified petroleum products with the following two returning bid packages: (1) Gulf State Asphalt and (2) Exxon Co., U.S.A. Vendors were asked to submit pricing for (1) Cut Back Asphalt, (2) Emulsions, (3) Liquid Asphalt Cement and (4) Catalytically Blown Asphalt Joint and Crack Filler. Low bid in Section I, Cut Back Asphalt is Exxon Co., U.S.A. Although price average from Exxon is 25~ less than pricing under current agreement with Exxon, Exxon did not bid on MC-800 nor quantities under 500 gallons. Plus Exxon prices will fluctuate without prior notice as established prices change. Exxon also stated that they reserve the right to refuse supply in the event of price increases not accepted by the buyer. Gulf State Asphalt bid is 4Z higher than current agreement. In Section II and III Gulf State Asphalt is the only respondent for Emulsions and Liquid Asphalt Cement. Prices on these items are lower than current agreement by 14~ and 87 respectfully. Sheplers Equipment Co., Inc. agreed to continue furnishing Catalytically Blown Asphalt Joint and Crack Sealer at 1985-86 price of $.25 per pound. Recommended bid awards for one year supply agreements are as follows: Section I (items 3 & 4), Section II and Section III - Gulf State Asphalt Section I (items 1 & 2) - Exxon Co., U.S.A. Section IV - Shepler's Inc. - Sole source supplier Please submit your recommendation along with an Agenda Request Form and all attachments to the City Manager's Administrative Assistant no later than 5:00 p.m. on the Monday preceding the next regular Council meeting. If there is a need to delay bringing this bid to the Council, you should con- tact me immediately so that arrangements can be made to extend the quoted bids. TB/mb cc: R. Hare Attachment: Bid Tabulation .• ,. 'SEALED BID 40149 - Street Material SECTION I: Cut Back Asphalt 1. MC-30 Delivered 5,000 Gal. or more RC-2 Delivered 5,000 Gal. or more MC-800 Delivered 5,000 Gal. or more 2. MC-30 Delivered 1,000 - 5,000 Gal. RC-2 Delivered 1,000 - 5,000 Gal. MC-800 Delivered 1,000 - 5,000 Gal. 3. MC-30 Picked Up 100 - 1,000 Gal RC-2 Picked Up 100 - 1,000 Gal MC-800 Picked Up 100 - 1,000 Gal. 4. MC-30 Picked Up 55 Gal. Drums RC-2 Picked Up 55 Gal. Drums MC-800 Picked Up 55 Gal. Drums • Gulf State Exxon 1985-86 Asphalt Contract Price Quantities 20,000 .866 * .6281 .8330 10,000 .866 * 6284 833 . . 10,000 .806 No Bid .935 20,000 1.146 * .6781 .833 10,000 1.146 * .6784 .833 10,000 1.036 No Bid 1.15 5,000 .98 No Bid .975 5,000 .98 No Bid 975 . 5,000 .92 No Bid 975 . 1,000 Gal. 2.20 No Bid 2.45 2,500 Gal. 1,000 Gal. 2.20 No Bid No Bid No Bid 2.45 No Bid SECTION II: Emulsion 1. CRS-2 Delivered 1,000 - 5,000 Gal. EA-11M Delivered 1,000 - 5,000 Gal. AES-300 Delivered 1,000 - 5,000 Gal. 2. CRS-2 Picked Up 50 - 1,000 Gal EA-11M Picked Uv 50 - 1,000 Gal AES-300 Picked Un 50 - 1,000 Gal * Prices Subject to Change 10,000 Gal .886 No Bid 1.035 10,000 Gal .886 No Bid 1.035 10,000 Gal .906 No Bid No Bid 10 000 .72 No Bid .87 10,000 .72 No Bid 87 10,000 .74 No Bid . Nn PAGE SEALED BID ~~0149 Gulf State \ Exxon Shepler's 1985-86 Street Material Asphalt Contract Prices ~tian t i t i P a ~\ 1 SECTION II: Emulsion (continued) 3. CRS-2 Picked U 55 Gal. Drums 1,000 1.95 No Bid No Bid 2.25 EA-11M Picked Up 55 Gal. Drums 1,000 1.95 No Bid No Bid 2.25 AES-300 Picked U 55 Gal. Drums 1,000 1.95 No Bid No Bid 2.25 SECTION III: Liquid Asphalt Cement 1. AC-5 Delivered 5,000 gal. or more 10,000 .6466 No Bid No Bid .6925 AC-10 Delivered 5,000 gal. or more 30,000 .6466 No Bid No Bid .6925 2. AC-5 Delivered 1,500 - 5,000 gal. 10,000 .7212 No Bid No Bid .6925 AC-10 Delivered 1,500 - 5,000 gal. 20,000 .7212 No Bid No Bid .6925 3. AC-5 Delivered less than 1,500 gal. 5,000 .7766 No Bid No Bid .9800 AC-10 Delivered less than 1,500 gal. 10,000 .7766 No Bid No Bid .9800 4. AC-5 Picked U less than 1,500 gal. 3,000 No Bid No Bid No Bid .9800 AC-10 Picked U less than 1,500 al. 3,000 No Bid No Bid No Bid .9800 SECTION IV: Catal ticall Blown 40,000 lb. No Bid No Bid .25 .25 As halt Joint & Crack Seal 105 lb. carton • RESOLUTION NO. 86-17 • A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS URGING THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS TO SUPPORT THE SOUTH EAST HARRIS COUNTY ECONOMIC DEVELOPMENT COUNCIL WHEREAS, the South East Harris County Economic Development Council (SEHCEDC, Inc.) is an association of the chambers of commerce of Seabrook, Pasadena, Deer Park, La Porte, South Houston, and South Belt-Ellington; and WHEREAS, the economic development and stabilization of the southeast Harris County area is of the utmost importance because the combined industry is largest employer in the county; a.nd WHEREAS, there are approximately 640,000 persons directly affected by the economic conditions of the area; and WHEREAS, the combined population of the areas represented by the associated chambers is 264,371; and WHEREAS, the progress of economic development requires funding and the various industries and private citizens have con- tributed their funds; and WHEREAS, the amount of taxes that can be collected are directly related to the economic conditions of the community; and WHEREAS, the Commissioners Court of Harris County has funds available to promote economic development; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. The City Council of the City of La Porte urges that all funds available to the Commissioners Court to promote economic development be divided and allocated to the South East Harris County Economic Development Council Area on the basis of its population in ratio to the total population of Harris County, Texas. PASSED AND APPROVED this the 23rd day of June, 1986. CITY OF LA PORTE ~ ~~ ~ ~z o man L. Ma on , Ma RESOLUTION NO. 86-17 Page 2 ATTEST: City Secretary APPROVED: C~,~ zJ City Attorney RESOLUTION NO. 86-18 A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, IN SUPPORT OF THE DEEPENING AND WIDENING OF THE HOUSTON SHIP CHANNEL WHEREAS, the Corps of Engineers has proposed the deepening and widening of the Houston Ship Channel, to facilitate maritime industry and ship movement in the waterway; and WHEREAS, ~ the" City of--L~a~ 'Porte' s Industrial District could be enhanced by improvements which may be made to the Houston Ship Channel; and WHEREAS, it is our belief that industrial development and resource conservation are not mutually exclusive issues. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. That the La Porte City Council hereby expresses its belief that the widening and deepening of the Houston Ship Channel and four of its tributary streams would be of significant benefit to the area. PASSED AND APPROVED this the 23rd day of June, 1986. CITY OF LA PORTE ATTEST: City Secretary APPROVED : ' ~ ~ ~~ City Attorney i~ ~ ~~ ~_ N rman Malone, Mayo