Loading...
HomeMy WebLinkAbout1998-01-26 Workshop and Regular Meeting of City CouncilMINUTES OF THE WORKSHOP AND REGULAR MEETING OF LA PORTE CITY COUNCIL JANUARY 26, 1998 1. CALL TO ORDER The meeting was called to order by Mayor Norman L. Malone at 6:00 p.m. Members of City Council Present: Mayor Norman L. Malone, Councilpersons Guy Sutherland, Chuck Engelken, Howard Ebow, Bob McLaughlin, Alton Porter, Deotis Gay, Jack Maxwell and Jerry Clarke. Members of Council Absent: None Members of City Executive Staff and City Employees Present: City Manager Robert T. Herrera, Assistant City Manager John Joerns, Assistant City Manager Jeff Litchfield, City Attorney Knox Askins, Police Chief Bobby Powell, Director of Public Works Steve Gillett, City Secretary Martha Gillett, Planning Director Guy Rankin, Director of Administrative Services Louis Rigby, Parks and Recreation Director Stephen Barr, Assistant Finance Director Cynthia Alexander, Purchasing Agent Susan Kelley, City Engineer Doug Kneupper, Communications Technician I Melissa Dominguez, Communications Technician II Nicole Hatter, Assistant City Secretary Rhonda Yockov and City Manager's Secretary Carol Buttler. Others Present: Steve Valarius, Ben Ritchie, B. Don Skelton, Spero Pomonis, Peter Griffith, Rand Valentin, Colleen Hicks, Mr. and Mrs. Strong, Sandy Hayes, Dave Benson, Paul Berner and a number of La Porte Citizens. 2. I.NVOCATION - REVEREND MICHAEL BINGHAM - ABUNDANT LIFE CHURCH Reverend Bingham delivered the invocation. 3. CONSIDER APPROVING MINUTES OF REGULAR AND WORKSHOP MEETING ON JANUARY 12, 1998. Motion was made by Councilperson Sutherland to approve the minutes of January 26. 1998 as presented. Second by Councilperson Engelken. The motion carried, 8 ayes, 0 nays and 1 Abstain. • 0 City Council Meeting Minutes January 26, 1998 Page 2 Ayes: Councilpersons Sutherland, Engelken, McLaughlin, Porter, Gay, Maxwell, Clarke, and Mayor Norman Malone. Nays: None Abstain - Councilperson Ebow 4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL Mr. B. Don Skelton, 233 San Jacinto, LaPorte, Texas 77571 addressed City Council regarding the proposed Graffiti Ordinance. Mr. Skelton advised Council he is in favor of the Graffiti Ordinance, but not in favor of the penalty portion of the Ordinance. Mr. Peter Griffith, 10922 Pinewood, LaPorte, Texas 77571 addressed the City Council to speak in favor of the proposed Graffiti Ordinance. Mr. Bill Strong, 2711 C.rescentview, LaPorte, Texas, addressed City Council on behalf of the Old 146 Committee. He advised Council the Old 146 Committee is in full support of the proposed Graffiti Ordinance. Mr. David Benson, 4100 Vista, Pasadena, Texas was invited to provide City Council a report on the City of Pasadena's Graffiti Program. Mr. Benson reported the program was implemented in 1995 and has proved to be successful. He stated the City of La Porte Ordinance is similar to the City of Pasadena's Ordinance. 5. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE AMENDING ORDINANCE NO. 1285, AN ORDINANCE IMPLEMENTING POLICEMAN'S CIVIL SERVICE; ESTABLISHING CLASSIFICATIONS; NUMBER OF AUTHORIZED POSITIONS IN EACH CLASSIFICATION (Ord. 97-1285-N) L. Rigby Director of Administrative Services Louis Rigby provided City Council with a summary and recommendation regarding Ordinance 97-1285-N. Mr. Rigby informed Council that when the number of police officers changes, the Ordinance must be updated. This change is a result of four (4) positions, which were approved, with the adoption of the budget effective 10-1-97. City Attorney read: ORDINANCE 98-1285-N - AN ORDINANCE AMENDING ORDINANCE NO. 1285, "AN ORDINANCE IMPLEMENTING POLICEMEN'S CIVIL SERVICE; ESTABLISHING City Council Meeting Minutes January 26, 1998 Page 3 CLASSIFICATIONS; NUMBER OF AUTHORIZED POSITIONS IN EACH CLASSIFICATION; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF". Motion was made by Councilperson Clarke to approve the Ordinance as read by the City Attorney. Second by Councilperson Engelken. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Porter, Gay, Maxwell, Clark and Malone. Nays: None 6. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE APPROVING AND AUTHORIZING A LEASE FOR FIXED BASE OPERATIONS FOR CITY OF LA PORTE MUNICIPAL AIRPORT BETWEEN THE CITY OF LA PORTE, LESSOR, AND D.E. AVIATION, INC., LESSEE (Item Tabled at 12/8/97 Meeting) (Ord. 97-2205) S. Gillett Public Works Director Steve Gillett presented summary and recommendation regarding Ordinance 97-2205. Mr. Gillett advised City Council that the City has negotiated a new lease with D.E. Aviation, decreasing the lease area to two (2) acres, effective January 1, 1997, and adding twenty-four (24) tie -downs, effective January 1, 1998. The proposed lease is for a period of twenty years, with two (2) five-year options. In addition, the proposed lease includes a corporate guarantee to address concerns with the future removal of the underground fuel storage tank. In addition, Mr. Gillett addressed questions from City Council. Mr. Gillett recommended Council approve Ordinance 97-2205 approving the Agreement and Lease between the City of La Porte and D.E. Aviation. City Attorney read: ORDINANCE 97-2205 - AN ORDINANCE APPROVING AND AUTHORIZING A LEASE FOR FIXED BASE OPERATIONS FOR CITY OF LA PORTE MUNICIPAL AIRPORT BETWEEN THE CITY OF LA PORTE, LESSOR, AND D.E. AVIATION, INC., LESSEE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING FOR AN EFFECTIVE DATE HEREOF. City Council Meeting Minutes January 26, 1998 Page 4 Motion was made by Councilperson Sutherland to approve this Ordinance as read by the City Attorney Second by Councilperson McLaughlin. The motion carried, 9 ayes, 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Porter, Gay, Maxwell, Clark and Malone. Nays: None 7. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN MAKING IT UNLAWFUL FOR ANY PERSON TO DEFACE ANY PUBLIC OR PRIVATE PROPERTY WITH GRAFITTI (Ord. 98-2214) - G. Rankin Planning Director Guy Rankin presented summary and recommendation to City Council. Mr. Rankin informed Council the Planning Department has been working with numerous City staff members and several businesses in La Porte to discuss the graffiti problem that currently exists within the City of La Porte. Thorough research has been done on this matter and City Council held a workshop to discuss the proposed Ordinance on January 12, 1998. Mr. Rankin requested the Council consider approval of the Graffiti Ordinance. City Attorney Read: ORDINANCE 98-2214 - AN ORDINANCE TO PROTECT THE PUBLIC HEALTH AND PROMOTE THE PUBLIC WELFARE OF THE CITY OF LA PORTE, TEXAS, BY PROHIBITING THE SPREAD OF GRAFFITI VANDALISM; REQUIRING THE REMOVAL OF SAID GRAFFITI; MAKING IT UNLAWFUL FOR ANY PERSON TO DEFACE ANY PUBLIC OR PRIVATE PROPERTY; PROVIDING THAT ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE FINED IN ANY SUM NOT MORE THAN FIVE HUNDRED DOLLARS ($500.00) AND EACH DAY OF VIOLATION SHALL BE DEEMED A SEPARATE OFFENSE; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson McLaughlin to approve this Ordinance as read by the City Attorne. Second by Councilperson Maxwell. The motion carried, 9 ayes, 0 nays. • City Council Meeting Minutes January 26, 1998 Page 5 Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Porter, Gay, Maxwell, Clark and Malone. Nays: None 8. AN ORDINANCE OF THE CITY OF LA PORTE, TEXAS, IMPOSING A TEMPORARY MORATORIUM ON THE ISSUANCE OF PERMITS FOR TOWERS FOR CELLULAR, PERSONAL COMMUNICATIONS SERVICE (PCS), AND SPECIALIZED MOBIL RADIO SERVICE TRANSMITTERS (SMR) (Ord. 98-2215) - G. Rankin Planning Director Guy Rankin presented summary and recommendation to City Council. Mr. Rankin informed City Council that the Planning and Zoning Commission will conduct a Public Hearing on February 19, 1998, to receive input on a proposed amendment to the Zoning Ordinance relating to cellular towers. This Ordinance will establish a temporary moratorium on the issuance of permits for towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR). This moratorium, if approved, would remain in effect Lind] May 19, 1998. Mr. Rankin requested Council consider approving an ordinance establishing a temporary moratorium on the issuance of permits for towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR). 1n addition, Mr. Rankin addressed questions from Council. City Attorney read: ORDINANCE 98-2215 - AN ORDINANCE OF THE CITY OF LA PORTE, TEXAS, IMPOSING A TEMPORARY MORATORIUM ON THE ISSUANCE OF PERMITS FOR TOWERS FOR CELLULAR, PERSONAL COMMUNICATIONS SERVICE (PCS), AND SPECIALIZED MOBILE RADIO SERVICE TRANSMITTERS (SMR), PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR THE EXPIRATION OF THE MORATORIUM; PROVIDING A SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Engelken to approve this Ordinance as read by the City Attorney. Second by Councilperson Ebow. The motion carried, 9 ayes, 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Porter, Gay, Maxwell, Clark and Malone. Nays: None City Council Meeting Minutes January 26, 1998 Page 6 9. CONSENT AGENDA - ANY ITEM MAY BE REMOVED BY A COUNCELPERSON FOR DISCUSSION A. CONSIDER AWARDING BID FOR WATER WELL IMPROVEMENTS TO WEISINGER WATER WELL - S. Gillett B. CONSIDER AWARDING BID FOR PLASTER RENOVATION OF FAIRMONT PARK AND RECREATION FITNESS CENTER POOLS TO QUALITY POOLS, INC. - S. Barr C. CONSIDER AWARDING BID FOR FIBERGLASS RENOVATION OF SAN JACINTO POOL TO RAINBOW RESURFACING, INC. - S S. Barr Motion was made by CouncilMrson McLaughlin to approve Consent Agenda as presented. Second by Councilperson Gay. The motion carried, 9 ayes, 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Porter, Gay, Maxwell, Clark and Malone. Nays: None 10. CALL TO ORDER WORKSHOP MEETING Mayor Malone called the Workshop Meeting to order at 6:51 P.M. The following items were discussed at the Workshop Meeting: A. REVIEW OPPORTUNITY FOR ADDITIONAL WATER CAPACITY PURCHASE BY THE LA PORTE AREA WATER AUTHORITY - J. Litchfield. B. REVIEW UTILITY EXTENSION AGREEMENT BETWEEN CITY OF LA PORTE AND STERLING DEVELOPMENT AND DISCUSS POLICY DECISION ON FUTURE DEVELOPMENT G.Rankin C. REVIEW DANA TANK CORPORATION'S REQUEST FOR WATER AND SEWER OUTSIDE CITY LIMITS - J. Joerns 11. ADJOURN WORKSHOP MEETING Mayor Malone adjourned the Workshop Meeting at 8:21 P.M. 0 9 City Council Meeting Minutes January 26, 1998 Page 7 12. ADMINISTRATIVE REPORTS City Manager Robert T. Herrera reminded City Council the Chamber of Commerce Annual Installation Banquet will be held on January 29, 1998. Secondly, Mr. Herrera reminded City Council about the Coca-Cola Property Dedication Ceremony to be held on January 27, 1998 at 10:00 A.M. Lastly, Mr. Herrera advised City Council there will be a Veteran's Administration Medical Screening at Evelyn Kennedy Civic Center on February 12, 1998. A doctor will be coming to our City as part of an outreach program. 13. COUNCIL ACTION Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Porter, Gay, Maxwell and Malone brought items to Council's attention. 14. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, AND 551.084, TEXAS GOVERNMENT CODE, - (CONSULTATION WITH ATTORNEY, DELIBERATION REGARDING REAL PROPERTY, DELIBERATION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, CONFERENCE WITH EMPLOYEES DELIBERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION) A. SECTION 551.076 - (SECURITY MATTERS) MEET WITH CITY MANAGER TO DISCUSS SECURITY MATTER WITH LA PORTE INDEPENDENT SCHOOL DISTRICT. Council retired into executive session at 8:27 p. m. under Section 551.076 (SECURITY MATTERS), Meet with City Manager to discuss security matter with La Porte Independent School District. Council returned to the table at 9:20 p.m., with no action taken. 15. CONSIDERATION AND POSSIBLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION. s City Council Muting Minutes January 26, 1998 Page 8 There was no consideration for this item. 16. ADJOURNMENT There being no further business to come before Council, the Regular Meeting was duly adjourned at 9:21 p.m. Respectfully submitted, Martha A. Gillett City Secretary Passed and approved on this 9th day of February, 1998 Norman L. Malone, Mayor 0 9 RETEST FOR CITY COUNCIL AGEVA ITEM Agenda Date Requested: January 26, 1998 Requested By: Louis Rigby Department: Administrative Services Report Resolution X Ordinance Exhibits: Ordinance 97-1285-N SUMMARY & RECOMMENDATION Ordinance No. 1285 which implements Civil Service and establishes classifications requires revision when changes in classification occur. Ordinance No. 98-1285-N reflects the addition of four police officers approved by Council during the budget process for fiscal year 1998. The additional police officers will be hired for implementation of the DOT program. Action Required by Council: Approval of Ordinance No. 98-1285-N. Availability of Funds: General Fund Water/Wastewater Capital Improvement General Revenue Sharing Other Account Number: N/A Funds Available: Yes No Approved for City Council Agenda Qjp-,t T. �� 1- a a •`1b Robert T. Herrera Date City Manager COPY ORDINANCE NO. 98-1285-N AN ORDINANCE AMENDING ORDINANCE NO. 1285, "AN ORDINANCE IMPLEMENTING POLICEMEN'S CIVIL SERVICE; ESTABLISHING CLASSIFICATIONS; NUMBER OF AUTHORIZED POSITIONS IN EACH CLASSIFICATION; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF". BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. Section 3 of Ordinance 1285-K is hereby amended and shall hereafter read as follows, to -wit: Section 3. There are hereby established the following number of authorized positions in each of the foregoing classifications, to -wit: NUMBER OF AUTHORIZED CLASSIFICATION POSITIONS Police Officer 45 Sergeant 9 Lieutenant 4 Assistant Chief 1 Section 2. Except as hereby specifically amended, Ordinance No. 1285 and amendments thereto shall remain in full force and effect. Section 3. 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. • NO. 98-1285-N • copy PAGE 2 Section 4. This Ordinance shall take effect and be in force as of October 1, 1997. PASSED AND APPROVED, this 26th day of January, 1998. CITY OF LA PORTE 1 Y Norman L. Malone, Mayor ATTEST: �-Aaaha-o - 8av Martha A. Gillett City Secretary APPROVED: nox W. Askins City Attorney r (05 REOUE0 FOR CITY COUNCIL AGENDA AM Agenda Date Requested: _ JanuarvA6,1998 Requested By: S. GiH —4t: Public Works Report Resolution XXX Ordinance Exhibits: Ordinance No.97-2205 Agreement and Lease for Fixed Base Operations SUMMARY & RECOMMENDATION The City of La Porte leases three (3) acres to D.E. Aviation, Inc. at the La Porte Municipal Airport. The lease expired on December 31, 1996. The City has negotiated a new lease with D.E. Aviation, decreasing the lease area to two (2) acres, effective January 1, 1997, and adding twenty-four (24) tie -downs, effective January 1, 1998. The proposed lease is for a period of twenty years, with two (2) five-year options. The proposed lease rental rate is $2,674.58 for the 1997 year, with the rental rate for 1998 at $2,763.44. The twenty-four tie -downs are leased at a rate of 30% of gross revenues from their rental or $12.00 per month per tie - down, whichever is greater, for an annual rental rate of $144 per tie -down, or $3,456.00. D. E. Aviation has tendered $500.00 for renewal fees, and $2,674.58 for rental fees for 1997. Rental for 1998 and subsequent years will be billed monthly, with future year rentals adjusted to the Consumer Price Index for All Urban Consumers, with the 1998 rate set at $6,219.44 for land and tie -down rental. The proposed lease includes a corporate guarantee to address concerns with the future removal of the underground fuel storage tank. Action Required by Council: Approve Ordinance No. 97-2205 approving the Agreement and Lease between the City of La Porte and D.E. Aviation. Availability of Funds: General Fund_ Water/Wastewater _ Capital Improvement General Revenue Sharing _ Other Account Number: N/A Funds Available: YES NO Approved for City Council Agenda (o� . tp , , l - rt-qs Robert T. Herrera Date City Manager a � � c(apy ORDINANCE NO. 97-2205 AN ORDINANCE APPROVING AND AUTHORIZING A LEASE FOR FIXED BASE OPERATIONS FOR CITY OF LA PORTE MUNICIPAL AIRPORT BETWEEN THE CITY OF LA PORTE, LESSOR, AND D.E. AVIATION, INC., LESSEE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. 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 City Manager 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. 97-2205 (COPY PAGE 2 PASSED AND APPROVED, this 26th day of January, 1998. CITY OF LA PORTE By: Norman L. Malone Mayor ATTEST: C, 40 J Martha A. Gillett City Secretary City Attorney 0 0 r (o) PD, Y( AGREEMENT AND LEASE FOR FIXED BASE OPERATIONS AT CITY OF LA PORTE MUNICIPAL AIRPORT THIS AGREEMENT AND LEASE, made and entered into this 1st day of January, 1997, by and between the City of La Porte, a municipal corporation organized and existing under the laws of the State of Texas, hereinafter referred to as "Lessor", and D.E. Aviation, Inc., a Texas business corporation, acting herein by and through its duly authorized officers, hereinafter referred to as "Lessee." W I T N E S S E T H- WHEREAS, the Lessor controls and operates an airport known as La Porte Municipal Airport, located in the City *of La Porte, State of Texas, which airport and any additions or improvements thereto or changes therein which the Lessor hereafter makes or authorizes are hereinafter collectively referred to as the "Airport", and, WHEREAS, the parties hereto desire to enter into an Agreement and Lease for the use of premises and facilities at the Airport all as more fully hereinafter set forth. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, the Lessor and the Lessee do hereby mutually undertake, promise and agree, each for itself and its successors and assigns, as follows: ARTICLE I - TERM OF AGREEMENT The term of this Agreement and Lease shall be for the period commencing January 1, 1997, and terminating December 31, 2017, unless sooner terminated as hereinafter provided. The Lessee reserves the option to renew this lease for two consecutive five year terms provided written notice is provided the Lessor within thirty days of lease termination. ARTICLE II - LEASED PREMISES AND FACILITIES 1. The Lessor, in consideration of the compensation and sundry covenants and agreements set forth herein to be kept and performed by the Lessee, does hereby, and by these presents, demise and lease unto the Lessee, upon the conditions hereinafter set forth, all of which the Lessee accepts, the exclusive use and occupancy of the Leased Premises, to -wit: Property at La Porte Municipal Airport, consisting of 2.000 acres, more or less, identified as "Fixed Base Operator Area" on Exhibit "All attached hereto and made a part of this Agreement; and twenty four (24) tie -downs which will become available January 1, 1998, identified as "Tie -Down Area", on Exhibit "B" attached hereto and made a part of this agreement. 1 The location and boundaries of said Leased Premises, as indicated on Exhibit "A" and Exhibit "B" attached hereto, are stipulated and agreed between the parties to be correct and by reference are made a part hereof. 2. Lessee takes all of such property in its present condition "as is", and except as otherwise specifically provided herein, agrees to provide all necessary and reasonable maintenance and repairs in order to maintain such property, identified in Exhibit "A", in a usable condition. 3. Lessee shall make available to the public for rental purposes, the T-Hangars and 24 tie -down facilities leased to Lessee herein. In its rental of such T-Hangars and tie -down facilities, the Lessee shall provide reasonable rental rates, consistent with industry standards for this region. Notwithstanding any other provision of this Agreement, the parties recognize and agree that Lessee is not herewith given and shall not exercise exclusive control over the ramp area not specifically leased under this Agreement; and that the public shall have the right, at all time, to ingress and egress, over and through said area, as reasonably necessary for the use by the public of airport facilities at La Porte Municipal Airport. Lessor agrees to abide by the terms as set forth in Standard Minimum Requirements for Airport Aeronautical Services, Exhibit "C". 4. The Lessor expressly reserves from the lease of the Leased Premises the following: A. All gas, oil and mineral rights in and under the soil. B . The right to grant utility rights -of -ways to others over, under, through, across or on the Leased Premises, provided that such use will not unreasonably or materially interfere with the Lessee's use of the Leased Premises. 5. Lessor agrees that in the event the Lessee desires to amend this lease through the acquisition of additional property that the fees as noted in Section 3 of the Standard Minimum Requirements for Airport Aeronautical Services, La Porte Municipal Airport (October 23, 1995) will be waived, provided Lessee pays for any survey required. ARTICLE III - RENTALS AND CHARGES 1. For the Leased Premises, as described in Article II, Exhibit "A", the basic ground rental calculated for an index value of 100.0 is Eight Hundred Seventy-one and 20/100 Dollars ($871.20) per acre per year. 2 The actual rentals for the Leased Premises, Exhibit "A", to be paid to the Lessor by the Lessee, shall be determined by multiplying said basic rentals specified under paragraph 1 above by the index value determined for successive calendar years in the manner herein set forth. The index value for the calculation of actual rental rates shall be based on the Consumer Price Index for All Urban Consumers, using as base year 1982-84 = 100, published by the Bureau of Labor Statistics of the United States Department of Labor, and shall be calculated as follows: A. The index for any particular lease year shall be the index for the month of December of the calendar year next preceding the year for which the calculation is made. The index for the lease year 1997 is based on the December 1995 of 153.5, resulting in an annual rental rate of One Thousand Three Hundred Thirty-seven 29/100 Dollars ($1, 337.29) per acre for the lease year beginning January 1, 1996. This rate results in a total 1997 lease year ground rental for the Leased Premises of Two Thousand Six Hundred Seventy-four and 58/100 Dollars ($2,674.58). The index for lease year 1998 is based on the December 1996 index of 158.6, resulting in an annual rental rate of One Thousand Three Hundred Eighty-one 72/100 Dollars ($1,381.72) per acre for the lease year beginning January 1, 1996. This rate results in a total 1998 lease year ground rental for the Leased Premises of Two Thousand Seven Hundred Sixty-three and 44/100 Dollars ($2,763.44). B. The actual 'rental rate shall be determined prior to January 1st of each lease year and shall be effective for that lease year. C. In the event that the United States Department of Labor discontinues publication of the above index or data from which the index can be directly computed, or if the method for the determination of such index is substantially different than that existing at the time this Agreement and Lease is executed, the basis for the rental rate adjustment shall be the most closely comparable index published by the U.S. Government. l.a Effective January 1, 1998, for the 24 Tie -Down Areas described on Exhibit "B" attached hereto, the following rental: A. Lessee shall pay to Lessor, as additional rent, a sum equal to thirty percent (30t) of the gross revenues obtained from rental of tie -down spaces; provided, however, Lessee shall guarantee Lessor a yearly rental of not less that $144.00, multiplied by the 24 tie -downs leased; 3 B. Rental for the 24 tie -downs shall be paid monthly, in a sum equal to 1/12th of the annual rental due, in advance, on the 1st day of each and every month. Cost of living indexing shall not apply to the rental and charges for the tie -down areas. 1 .b In the event -that Lessor and Lessee reach agreement in the future, for possible future construction by Lessee in the designated use area for T-Hangars, such additional lease shall be subject to all of the terms and provisions of this lease, with a rental rate of $0.14 per square foot, based on the CPI-U in effect on July 1, 1995, based on the Consumer Price Index for All Urban Consumers (1982-84 = 100) . 2. The parties recognize that Lessee shall lease to tenants, facilities for the storage and/or tie-down*of aircraft within leased properties described as "Designated Use Area' on Exhibit "A". The Lessee shall have the right to provide additional T-Hangar or tie - down facilities on the property leased herein, but any such additional facility shall only be provided after specific written authorization from the Lessor. Additional facilities shall be provided only in areas specifically authorized by the Lessor and shall be hardsurfaced rather than grass areas. 3. The rental above provided for during the term of this Agreement and Lease shall be paid monthly,' in sum equal to 1/12 of the annual rental due hereunder, in advance on the first day of each and every month. In the event that this Agreement and Lease commences or terminates other than on the first or last day of the month, pro- rata payments shall be made for the fractional part of a month involved. 4. The Lessor is entitled to collect and the Lessee agrees to pay, all rentals due under this Agreement and Lease to the City of La Porte, La Porte Municipal Airport, La Porte, Texas, without notice to the Lessee. Rentals more than thirty (30) days past due may be subject to a service charge of one percent (la) per month, based on an annual rate of twelve percent (12U . S. Without prejudice to any other remedy which otherwise might be used for arrears of rent or other breach of this Agreement, if the Lessor is required or it elects to pay any sum or incurs any obligations or expense, by reason of a failure, neglect or refusal of the Lessee to perform any one or more of the terms, conditions or covenants of this Agreement and Lease or as the result of any act or omission of Lessee contrary to said terms, conditions and covenants, the sum or sums so paid or the expense so incurred, including all interest, costs, damages and penalties may be added to any installment of -rent thereafter due hereunder and each and every part of the same shall be and become additional rent recoverable by the Lessor in the same manner and with like remedies as if it were originally a part of -the rent as set forth hereinabove. T ARTICLE IV - ACTIVITIES USES PRIVILEGES AND OBLIGATIONS OF THE LESSEE 1. A Fixed Base Operations is defined as a commercial aviation activity conducted by a person, partnership, firm or corporation engaged in the hangaring, maintenance, care and operation of aircraft for use by the public, and such other activities as may be pertinent to such use. This definition specifically includes all terms as set forth in Minimum Standards for Equipping & Operating A General Fixed Base Operation at the La Porte Municipal Airport, made a part hereof by reference and attached as Exhibit "C". 2. During the term of this Agreement and Lease, the Lessee agrees to use the Leased Premises for the purposes or activities stated above, subject to the conditions generally or particularly set forth herein, and not to use or permit the use of the Leased Premises or any part thereof for any purposes or activities other than those specifically stated above without first obtaining the express, written approval of the Lessor. 3. Lessee agrees that the rights and privileges granted herein are non-exclusive except as to the Leased Premises which shall be for the exclusive use of the Lessee. 4. The Lessee agrees that the Lessor has the right to adopt and enforce reasonable rules and regulations and that it and all its employees, agents and servants will faithfully observe and comply with all rules and regulations as may from time to time be promulgated by the Lessor, the United States of America or by any department or agency thereof, the State of Texas and the City of La Porte. 5. The Lessee agrees, at its own expense, to pay any and all taxes levied by the City, County or other appropriate governmental units and to pay any and all costs or charges for utility services furnished to or required by the Lessee. 6. The Lessee will not suffer or permit to be maintained upon the Leased Premises or upon the exterior of any improvements or appurtenances thereto any billboards, signs or other advertising media except those which have prior written approval of the Lessor. Flashing, rotating, animated or intermittent illuminated type signs are prohibited. 7. Lessee shall utilize on the Airport, only service contractors authorized to operate at the Airport, including, but not limited to vendors of aircraft, aircraft parts, service and fuel, car rental service, taxicab service, vending machine service and the like; it being understood that fees may be imposed or collected by the Lessor from such contractors for the privilege of operating at the Airport. k t: ML ARTICLE V - RIGHTS AND COVENANTS OF THE LESSOR 4 1. The Lessor covenants that it is well seized of the Leased Premises and has good title thereto free and clear of all liens and encumbrances and has full right and authority to lease the same as herein set forth. 2. The Lessor covenants that the Lessee shall have peaceful possession and quiet enjoyment of the Leased Premises during the term hereof so long as the Lessee performs and observes all of the covenants, agreements, terms and conditions hereof. 3. The Lessor reserves the right to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of the Lessee in this regard. 4. The Lessor reserves the right further to develop or improve the landing area and all publicly owned air navigation facilities of this Airport as it sees fit, regardless of the desire or views of the Lessee, and without interference or hindrance. 5. The Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent the Lessee from erecting, or permitting to be erected, any building or other structure on the airport which in the opinion of the Lessor would limit the usefulness of the Airport or constitute a hazard to aircraft. 6. During time of war or national emergency Lessor shall have the right to enter into an agreement with the Unites States Government for military or naval use of part or all of the landing area, the publicly owned air navigation facilities of the Airport. If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. 7. This Agreement shall be subordinate to the provisions of any outstanding agreement between Lessor and the United States relative to the maintenance, operation or development of the Airport. 8. It is understood and agreed that the rights granted by this Agreement will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the Airport. 9. There is hereby reserved to the Lessor, its successors and assigns, for the use and benefit of the public, a free and unrestricted., right of flight for the passage of aircraft in the airspace above the surface of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter 6 used for navigation of our flight in the air, using said airspace for landing at, taking off from, or operating on or about the Airport. 10. It is acknowledged and understood that the lessor will be bound by all the terms and conditions outlined in the Standard Minimum Requirements for Airport Aeronautical Services, Exhibit "C", for the duration of the lease. ARTICLE VI - IMPROVEMENTS AND MAINTENANCE 1. Lessee agrees that construction of all facilities, improvements or appurtenances on or in connection with the Lease Premises is prohibited without the express written consent of the Lessor before commencement of said construction. All facilities, improvements, or appurtenances proposed for construction shall comply with all existing applicable codes, ordinances, laws and regulations relating thereto. 2. Lessee agrees that T-Hangars constructed within the designated "T-Hangar Development Area" will be built in structures containing no fewer than ten (10) units each. 3. The Lessee agrees that no obstruction to air navigation as such are now defined by application of the criteria of Part 77 of the Federal Aviation Regulations of the Federal Aviation Administration will be constructed or permitted to remain on the Leased Premises absent a waiver. Any unreasonable obstructions shall be removed by the Lessee at its expense. The Lessee agrees not to increase the height of any structure or objects or permit the growth of plantings of any kind or nature whatsoever that would interfere with the line of sight of aircraft operating on or above the Airport in airspace protected under rules prescribed by FAR Part 77. The Lessee further agrees not to install any structures, objects, machinery or equipment that would interfere with operation of navigation aids or that would interfere with the safe and efficient operations of the Airport, or interfere with the operations of other tenants and users of the Airport. 4. The Lessee agrees that all utility services required by it during the lease term for the Lease Premises must be paid for by the Lessee including the maintenance cost of service lines. 5. The Lessee agrees, at its own expense, to cause the Leased Premises and any improvements and appurtenances thereto to be maintained in a tenantable and in a safe, neat, clean and presentable condition including, but not limited to, the necessary mowing and snow removal of the Leased Premises during the appropriate periods of the year. r6 6. The Lessee agrees, at its own expense to reasonably keep and reasonably maintain in good repair, all structures, pavements, utilities and all other improvements and appurtenances within and upon the Leased Premises in Exhibit "A". Lessee further agrees that Lessor shall have no duplicate maintenance responsibilities that are the Lessor's with respect to the Leased Premises in Exhibit "A". 7. Lessee agrees, at his own expense, to remove all waste, garbage, and rubbish from the Lease Premises, and agrees not to deposit the same. on any part of the Leased Premises except temporarily in connection with collection for removal. No waste, garbage or rubbish will at any time be deposited on any other area of the Airport. 8. Lessee agrees to provide, at its own expense, such janitor, toilet, and cleaning services and supplies as may be necessary or required in the operation and maintenance of the Leased Premises and the improvements and appurtenances thereto. 9. The Lessor and its authorized officers, employees, agents, contractors, subcontractors, and other representatives shall have the right to enter upon or in the Leased Premises and any improvements thereon for the following purposes: A. To inspect the Leased Premises and any improvements thereon at reasonable intervals during regular business hours or at any time in case of,emergency, to determine whether the Lessee has complied and is complying with the terms and conditions of this Agreement and Lease with respect to such Leased Premises. B. To perform any and all things which the Lessee is obligated to do and has failed,.after reasonable notice to do, including maintenance, repairs and replacements of any portion of the Leased Premises, improvements or appurtenances thereto, in which event the Lessee agrees to reimburse the Lessor for reasonable costs thereof promptly upon demand, as set forth herein before. C. In the exercise of the Lessor's police power. D. To inspect the Leased Premises and perform any and all things with reference thereto which the Lessor is obligated or authorized to do as set forth herein. No such entry by or on behalf of the Lessor within or upon the Leased Premises or any improvements thereon shall cause or constitute a termination of the letting thereof or be deemed to constitute an interference with the possession thereof by the Lessee. 8 f 10. Upon termination of this Agreement and Lease at the expiration of the term or for any other reason or cause, the Lessee shall have the right to remove any structures or other improvements and all machinery, fixtures, apparatus and equipment owned by the Lessee and located on the Leased Premises for a period of 120 days after said termination date and upon payment of rentals as provided in Article III hereof to the date of removal of said improvements. The Lessor shall be entitled to have the Lease Premises herein demised returned to it clear of all improvements owned by the Lessee and may require the Lessee to make such restoration by written notification within 120 days following termination of this Agreement and Lease; and, in the event of the failure by the Lessee to restore the Leased Premises as herein required, within 120 days of said written notification, then the Lessor may make such restoration at the Lessee's expense. In the event that Lessee does not remove all said improvements or equipment, and the Lessor elects not to require said restoration of the Leased Premises, then upon the expiration of 120 days from the date'of termination of this Agreement and Lease, all structures or other improvements and all machinery, fixtures, apparatus and equipment located on the Leased Premises shall become the property of the Lessor. ARTICLE VII - INDEMNIFICATION AND INSURANCE 1. The Lessee covenants and agrees to indemnify and save harmless the City of La Porte, its officers, agents and employees, their successors and assigns, individually or collectively, from and against all liability for any fines, claims, suits, liens, demands, actions or cause of action of any kind or nature for personal injury or death, or property damage in any way arising out of or resulting from any activity or operation of the Lessee on the Leased Premises or in connection with its use of the Leased Premises, and the Lessee further agrees to pay all expenses in defending against any such claims made against the Lessor, including reasonable attorney's fees; provided, however, that the Lessee shall not be liable for any injury, damage or loss occasioned by the negligence or willful misconduct of the Lessor, its agents or employees. The Lessee and the Lessor shall give prompt and timely notice of any claim made or suit instituted which, in any way, directly or indirectly, contingently or otherwise, affects or might affect either party. If the Lessee fails, after written notice from Lessor, to so save harmless and indemnify. Lessor, Lessor shall have the right, in addition to its other legal remedies, to declare a default in Lessee's obligation to fulfill and comply with the terms and conditions of this Lease, and Lessor may then proceed to termination of the Lease pursuant to Article IX hereof. 2. The Lessee shall procure and maintain in effect during the term of this Agreement and Lease insurance with companies licensed to do business in the State of Texas, and naming the Lessor as an additional insured and containing a cross liability agreement, providing the following coverages: AIRCRAFT LIABILITY Bodily Injury Property Damage Passenger Legal Liability One Hundred Thousand Dollars ($100,000) each person One Million Dollars ($1,000,000) each accident Five Hundred Thousand Dollars ($500,000) each accident One Hundred Thousand Dollars ($100, 000) each passenger seat Or alternatively a single limit legal liability policy (public liability and property damage) of not less than One Million Dollars ($1,000,000) which may include a limit of One Hundred Thousand Dollars ($100,000) each person. COMPREHENSIVE PUBLIC LIABILITY AND COMPREHENSIVE PROPERTY DAMAGE Bodily Injury Property Damage Or alternatively a single limit liability and property damage) of ($1,000,000) which may include Dollars ($100,000) each person. One Hundred Thousand Dollars ($100,000) each person One Million Dollars ($1,000,000) each accident Five Hundred Thousand Dollars ($500,000) each accident legal liability policy (public not less than One Million Dollars L limit of One Hundred Thousand 3. A certified copy of each policy evidencing the existence thereof shall be delivered to the Lessor within ten (10) days after the execution of this Agreement and Lease. Each such copy shall contain a valid provision or endorsement that the policy may not be cancelled, terminated, changed or modified without giving ten (10) days written advance notice thereof to the Lessor. Each such policy shall not, without obtaining express advance permission from the Lessor, raise any defense involving in any way the immunity of the City of La Porte, its members, officer, agents, or employees, the governmental nature of the Lessor, or the provisions of any statutes respecting suits against the City. 4. The Lessee, if applicable, shall furnish to the City satisfactory evidence that it carries Workmen's Compensation Insurance in accordance with the -laws of the State of Texas. 10 5. In the event that any repairs, alterations, additions, or improvements are made, in, on or to the Leased Premises by reason of the use and occupancy of the Leased Premises by the Lessee, then the Lessee covenants and agrees to make such repairs, alterations, additions, or improvements in, on or to the Leased Premises at its own expense. The Lessee covenants and agrees to indemnify and save harmless Lessor from and against all expenses, liens, claims, or damages to either persons or property which may or might arise by reason of any repairs, alterations, additions, or improvements made by the Lessee in, on or to the Leased Premises. ARTICLE VIII - TERMINATION OF LESSEE 1. In addition to -all other remedies available to the Lessee, this Agreement and Lease shall be subject to cancellation by the Lessee should any one or more of the following events occur: A. The permanent abandonment of the Airport. B. The issuance by any court of competent jurisdiction of any injunction preventing or restraining the use of the Airport in such manner as to substantially restrict the Lessee from conducting its fixed base operation, and the remaining in force of such injunction for at least sixty (60) days. C. The breach by the Lessor of any of the terms, covenants, or conditions of this Agreement and Lease to be kept, performed, and observed by the Lessor, and the failure of the Lessor to remedy such breach for a period of sixty (60) days after written notice from the Lessee of the existence of such breach. D. The assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the Airport and its facilities in such a manner as to substantially restrict the Lessee from conducting its operation, if such restrictions be continued for a period of three (3) months or more. ARTICLE IX - TERMINATION BY LESSOR 1. In addition to all other remedies available to the Lessor, this Agreement and Lease shall be subject to cancellation by the Lessor should any one or more of the following events occur: A. If the Lessee shall file a petition of bankruptcy; or if proceedings in bankruptcy shall be instituted against it and it is thereafter adjudicated a bankrupt pursuant to proceedings; or if a court shall take jurisdiction of the Lessee and its assets pursuant' to proceedings brought under the provisions of any Federal Re -Organization Act; or if a Receiver for the Lessee's assets is appointed; or if the Lessee shall be divested of its rights, powers 11 • • COPY and privileges under this Agreement and Lease by other operation of law. B. If the Lessee shall default in or fail to make any payments at the times and in the amount required of it under this Agreement and Lease. C. If the Lessee shall abandon and discontinue the conduct of a fixed base operation. D. If the Lessee shall fail to perform, keep and observe all the covenants and conditions contained in this Agreement and Lease to be performed, kept and observed by it. E. If the Lessee shall fail to abide by all applicable laws, ordinances, rules and regulations of the United States, State of Texas, or the City of La Porte. Provided that upon happening of any of the contingencies recited in subparagraphs B, C, D and E above the Lessor shall give written notice to the Lessee to correct or cure such default, failure to perform, or breach, and if, within thirty (30) days from the date of such notice, the default, failure to perform or breach complained of, shall not have been corrected in a manner satisfactory to the Lessor, then, and in such event, the Lessor shall have the right at once and without further notice to the Lessee to declare this Agreement and Lease terminated and to enter upon and take full possession of the Leased Premises and Leased Facilities and, provided further that upon the happening of any one of the contingencies enumerated in subsection A hereof, this Agreement and Lease shall be deemed to be breached by the Lessee and thereupon ipso facto and without entry or any other action by the Lessor, the Agreement and Lease shall terminate, subject to be reinstated only if such involuntary bankruptcy or insolvency proceedings, petitions for reorganization, trusteeship, receiver ship, or other legal act divesting the Lessee of its rights under this Agreement and Lease shall be denied, set aside, vacated or terminated in the Lessee Is favor within forty-five (45) days from the happening of the contingency. Upon the happening of said latter event, this Agreement and Lease shall be reinstated as if there had been no breach occasioned by the happening of said contingencies provided that the Lessee shall within ten (10) days discharge any and all sums of money which may have become due under this Agreement and Lease in the interim and shall then remain unpaid and shall likewise fully perform and discharge all other obligations which may have accrued and become payable in the interim. The acceptance of rentals and fees by the Lessor for any period or periods after a default of any of the terms, covenants, and conditions herein contained to be performed, kept and observed by the Lessee shall not be deemed a waiver of any rights of the Lessor to cancel this Agreement and Lease for failure by the Lessee to so perform, keep, or observe any of the terms of this Agreement and Lease to be kept, performed, and observed by the Lessee. 12 CoUpr ARTICLE X - ASSIGNMENT AND SUBLETTING 1. The activities, uses, privileges and obligations authorized herein are personal and the Lessee agrees that it will not assign, subcontract, sublet, or underlet the same or any portion thereof, or assign, subcontract, sublet or underlet the Leased Premises or any portion thereof without the expressed consent of the Lessor in writing and any purported assignment or subcontract in violation hereof shall be void. In no case, however, may the activities, uses, privileges and obligations authorized herein or the Leased Premises or any portion thereof be assigned, subcontracted, sublet, or underlet by the Lessee for any use other than herein specified. All provisions of this Agreement and Lease applicable to the Lessee hereunder shall be equally binding upon any party to which the activities, uses, privileges and obligations authorized herein, leased Premises are assigned, subcontracted, sublet or underlet. 2. The Lessor will not be unnecessarily arbitrary in granting said permission, but the Lessor shall be the sole judge as to the reliability, capability, character, and desirability of the parties involved. ARTICLE XI - HOLDING OVER 1. In the event the Lessee shall hold over and remain in possession of the Leased Premises herein leased after expiration of this Agreement and Lease without any written renewal thereof, such holding over shall not. be deemed to operate as a renewal or extension of this Agreement and Lease but shall only create a tenancy from month to month which may be terminated at any time by the Lessor ARTICLE XII - SUCCESSOR AND ASSIGNS BOUND BY COVENANTS 1. All covenants, stipulations and agreements in this Agreement and Lease shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereto. ARTICLE XIII - GENERAL PROVISIONS 1. Notices to the Lessor provided for in this Agreement and Lease shall be sufficient if sent by certified or registered mail, postage prepaid, addressed to the City Manager, City of La Porte, P.O. Box 1115, La Porte, Texas 77572, and notices to the Lessee if sent by certified or registered mail, postage paid addressed to D.E. Aviation, Inc., 101 Airport Blvd., La Porte, Texas 77571, or to such other respective address as the parties may designate to each other from time to time. 2. The Lessee represents that it has carefully reviewed the terms and conditions of the Agreement and Lease and is familiar with such terms and conditions and agrees faithfully to comply with the same to the extent to which said terms and conditions apply to its activities, authorized and required by this instrument. 13 3. The term "Lessor" as used in this Agreement and Lease means the City of La Porte, and where this Agreement and Lease speaks of approval and consent by the Lessor, such approval is understood to be manifested by act of the City Manager, except as otherwise expressly stated in this Agreement and Lease. ARTICLE XIV - INVALID PROVISION 1. In the event that any covenant, condition or provision herein contained is held to be invalid by any Court of competent jurisdiction, the invalidity of any such covenant, condition, or provision shall in no way affect any other covenant, condition or provision herein contained; provided that the validity of any such covenant, condition, or provision does not materially prejudice either the Lessor or the Lessee in its respective rights and obligations contained in the valid covenants, conditions, or provisions of this Agreement and Lease. ARTICLE XV - FEDERAL REQUIREMENTS 1. The right to conduct aeronautical activities or furnishing services to the public is granted the Lessee subject to Lessee agreeing to: A. Furnish said services on a fair, equal and not unjustly discriminatory basis to all users thereof, and B. Charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; provided, that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. 2. The Lessee in exercising any of the rights or privileges herein granted to it shall not on the grounds of race, color, or national origin discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of the Secretary of Transportation. The Lessor is hereby granted the right to take such action, anything to the contrary herein notwithstanding, as the United States may direct to enforce this nondiscrimination covenant. 3. The Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. The Lessee assures that it will require that its covered suborganizat ions provide assurances to the Lessee that they similarly will undertake affirmative action programs and that they will require assurances from their suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect. 14 TICLE XVI - ENVIRONMENTAL 1. "Environmental Laws" means all federal, state, and local environmental, land use, zoning, health, chemical use, safety and sanitation laws, statutes, ordinances and codes relating to the protection of the environment and/or governing the use, storage, treatment, generation, transportation, processing, handling, production or disposal of Hazardous Substances. "Hazardous Substances" means, without limitation, radon, radioactive materials, asbestos, urea formaldehyde form insulations, polychlorinated biphenyls, benzene, hazardous materials, flammable explosives, hazardous or toxic wastes, hazardous or toxic substances or related materials including all such wastes, materials and substances as such terms are defined in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended [42 U.S.C. Sec. 9601 et. seq.], the Resource Conservation and Recovery Act, as amended [42 U.S.C. Sec. 6901 et. seq.] or any other applicable environmental laws and the regulations adopted pursuant thereto and other Environmental Laws governing waste substances, and the rules, regulations, policies, guidelines, interpretations, decisions, orders, and directives of any governmental authority with respect thereto. "Polluting Substances" means, without limitation, fuels, crude oil, chemicals, or any other liquid or solid material which if spilled or disposed of on real estate will pollute such real estate. 2. Lessee covenants and agrees, in its use of the leased premises, that it shall comply with all Environmental Laws. Lessee covenants and agrees, in its use and occupancy of the leased premises, that (a) no release of a hazardous substance or polluting substance shall occur on the leased premises that would constitute a violation of any Environmental Law; (b) any underground storage tanks placed on the leased premises shall be used in conformity with all Environmental Laws, and all necessary permits shall be obtained therefore; (c) there shall not be any Hazardous Substances or Polluting Substances in or contaminating any of the land, buildings, structures, or other improvements constituting a part of the Leased Premises that would constitute a violation of any Environmental Laws; and (d) there have not been nor are there any Hazardous Substances in concentrations that exceed amounts permitted by Environmental Laws on or in any of the land, buildings, structures, or other improvements on the Leased Premises. 15 • ARTICLE XVII - FAVORED NATIONS CLAUSE 1. Lessor covenants and agrees not to hereafter enter into any lease, contract, or agreement, nor any renewal of any existing leases, with any other party with respect to the Airport, containing more favorable terms than this lease or to grant to any other operator rights, privileges or concessions with respect to the Airport which are not accorded to Lessee hereunder, unless the same rights, privileges and concessions are concurrently and automatically made available to Lessee. It is understood and agreed that the intent of the parties in this paragraph is to provide that Lessee shall not be put at a competitive disadvantage with any other operator rights, privileges or concessions which have not been granted to Lessee or terms and conditions more favorable than those enjoyed by Lessee. ARTICLE XVIII - PRIOR LEASE 1. This Agreement of Lease supersedes that certain Airport Lease Agreement between the City of La Porte, Lessor, and Robert A. Gregory and James M. Williams, Lessee, dated January 1, 1977, and expiring on the 31st day of December, 1996, which Agreement of Lease was assigned to D.E. Aviation, a General Partnership consisting of E. Harvey and Deborah Rihn, on the 5th day of August, 1981. ARTICLE XIX - CORPORATE G 1. In the event Lessee constructs further permanent improvements, or demolishes permanent improvements, on the Leased Premises, the corporation reasonably guarantee the performance of such construction or demolition. 16 IN WITNESS WHEREOF, the parties have caused these presents to be signed by their duly authorized representatives. ATTEST: ' i' OL . Mart Aa A. Gillett City Secretary APPROVED: ' Rfiox W . Askins City Attorney ATTEST: 4retary Lessor: CITY OF LA PORTE BY: �Normann , Malone; -Mayor Lessee: .E. IA N, INC. Deborah Rihn-Harvej President 17 Fnd. 5,8 I R . i � � S � S i�i. 'yam• • 2 �p- `• IIT'- t hd Fnd.5,C IR I SCALE: 1"=100' ,:;,Fnd.5,e IR .'�� �2,, 30 � \ •"� l� m .- 3s\`' 2.000 ACRES (87,120 Sq. Ft.) AirDicne ?arSinq Area "rDian.; Hamer N tiS �1 f a Cenereeej Canc. s9 Carey^) � asonair Ip / Place of Beginning Fnd:ke IR--'� Lease Tract For D E Aviation Lo Porte Muni-cipal Airport Being 2.000 Acres out of the W.M. Jones Survey A482, La Porte, Texas ................. RICHARD� W. CANKER .. 9tip°'�gss►Q`�y0� cI Southeast corner of v La Porte Municipal' = Airport 0 100. 00, j j N 89.33'00" W SPENCER HIGHWAY CIVIL CONCEPTS INC. 4117 Vista Road Pasadena. -Texas 77.504 Phone: (713) 947-6606 September 3, 1997 ro) U LEGAL DESCRIPTION D E AVIATION 2.000 ACRE LEASE TRACT A tract of land containing 2.000 acres (87,120 Sq. Ft.) Being out of the W.M. Jones Survey Abstract Number 482, and also situated within the confines of the La Porte Municipal Airport and being more particularly described by metes and bounds as follows: Commencing at the Southeast comer of the La Porte Municipal Airport property, said point also lying in the.north right-of-way line of Spencer Highway; Thence North 89 deg. 33 min. 00 sec. West with the north right-of-way line of said Spencer Highway, also being the south line of the said La Porte Municipal Airport, for a distance of 100.00 feet to a point for comer, Thence North along a line parallel to and 100.00 feet west of the east. line' of said La Porte Municipal Airport for a distance of 426.19 feet to a found 5/8 inch iron rod marking the Place of Beginning of the herein described 2.000 acre tract; Thence North 52 deg. 20 min. 30 sec. West for a distance of 479.64 feet to a point for corner; Thence North 37 deg. 39 min. 30 sec. East for a distance of 22.0.89 feet to a point for corner; Thence South 52 deg. 20 min. 30 sec. East for a distance of 309.17 feet to a point for comer being 100.00 feet west of the said east line of La Porte Municipal Airport; Thence South along a line parallel to and 100.00 feet west of the east line of said La Porte Municipal Airport for a distance of 279.02 feet to the Place of Beginning. Richard W. Cansler RPLS Civil Concepts Inc. 4117 Vista Road - Pasadena, Texas 77504 September 3, 1997 C RICHARDW. CANSLER 9.9 4136 SURE � EXHIBIT B ° E)=IT C (Exhibit C not preprinted) STANDARD M[NDAUM REQUIREMENTS FOR AIRPORT AERONAUTICAL SERVICES LA-PORTE MUNICIPAL AIRPORT OCTOBER 23, 1995 0 0 Agenda Date Requested: January 26, 1998 Requested By: Guy Rankin a)qA Department: Planning Report Resolution X Ordinance Exhibits: 1. Ordinance Summary & Recommendation In recent months, the Planning Department has been working with numerous City staff members and several businesses in La Porte to discuss the graffiti problem that currently exists within our City. Graffiti can be seen on buildings, over -passes, sidewalks, billboards and fences. Through research we have learned that most experts on the subject agree that a comprehensive city-wide anti -graffiti program is one of the keys to reducing violence between rival gangs and preventing urban blight. Quick removal of graffiti often deters future vandalism. On January 12, 1998, City Council held a workshop to discuss the proposed ordinance. Consider approval of Graffiti Ordinance. Availability of Funds: N/A General Fund Water/Wastewater Capital Improvement General Revenue Sharing Other Account Number: Funds Available: Yes No Approved for City Council Agenda l Kr 'f �-�--- l • 22'q� Robert T. Herrera Date City Manager ORDINANCE NO. 98 - 2214 ' AN ORDINANCE TO PROTECT THE PUBLIC HEALTH AND PROMOTE THE PUBLIC WELFARE OF THE CITY OF LA PORTE, TEXAS, BY PROHIBITING THE SPREAD OF GRAFFITI VANDALISM; REQUIRING THE REMOVAL OF SAID GRAFFITI; MAKING IT UNLAWFUL FOR ANY PERSON TO DEFACE ANY PUBLIC OR PRIVATE PROPERTY; PROVIDING THAT ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE FINED IN ANY SUM NOT MORE THAN FIVE HUNDRED DOLLARS ($500.00) AND EACH DAY OF VIOLATION SHALL BE DEEMED A SEPARATE OFFENSE; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, pursuant to Texas law, including the City's powers as a home rule municipality, the City may enact ordinances to protect the health, safety and welfare of its citizens; and WHEREAS, the City Council has determined that unauthorized markings, including graffiti, on buildings and other structures constitute a visual blight and safety hazard, and are often used to identify gang territory, promote organized crime and provide a communication system for gangs that furthers criminal activities; and WHEREAS, the City Council has also determined that visual blight as described herein contributes to neighborhood deterioration and damages property, as well as being objectionable and unsightly, and therefore constitutes a public nuisance; and WHEREAS, the City Council finds that visual blight as described herein is a public nuisance, and as a result, wishes to provide for the abatement thereof within the City of La Porte; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF LA PORTE, TEXAS, THAT: SECTION 1. DEFINITIONS. Agent shall mean any individual employed the City of La Porte, or a volunteer for the City of La Porte, duly designated and authorized by the City Manager to act on behalf of the City of La Porte pursuant to the terms of this ordinance. Graffiti shall mean any inscription, word, figure, painting or other defacement that is written, marked, etched, scratched, sprayed, drawn, painted, or engraved on or otherwise affixed to any surface of public or private property by any graffiti implement. 9 ORDINANCE NO. 98 - Cal Y PAGE 2 Graffiti Implement shall mean an aerosol paint container, a broad -tipped marker, gum label, paint stick or graffiti stick, etching equipment, brush or any other device capable of scarring or leaving a visible mark on any natural or man-made surface. Owner or Occupant shall mean the record owner of the lot or parcel or responsible party or the tenant of a residential or commercial property. Unauthorized shall mean without the consent of the owner or occupant or without authority of law, regulation or ordinance. Unless the owner proves otherwise, lack of consent will be presumed under circumstances tending to show (i) the absence of evidence of specific authorization of the graffiti by the owner, (ii) that the graffiti is inconsistent with the design and use of the subject property, or (iii) that the person causing the graffiti was unknown to the owner. SECTION 2. GRAFFITI AS A NUISANCE. It shall be unlawful for any person to apply graffiti to any natural or man-made surface on public or private property. The existence of graffiti on public or private property in violation of this Ordinance is expressly declared to be a public nuisance and, therefore, is subject to the removal and abatement provisions specified in this Ordinance. It is the duty of both the owner of the property to which the graffiti has been applied and any person who may be in possession or who has the right to possess such property to at all times keep the property clear of graffiti. SECTION 3 REMOVAL OF GRAFFITI BY PERPETRATOR. Any person applying graffiti on public or private property shall have the duty to remove within seventy-two (72) hours after notice by the City. Such removal shall be done in a manner prescribed by the City Manager, or his designee. Any person applying graffiti shall be responsible for the removal or for the payment of the removal, provided that the owner of the property gives consent for the perpetrator to enter the affected property for purposes of said removal. An officer or an agent of the City of La Porte (as designated by the City Manager) shall be present at all times that a perpetrator has re-entered a property for purposes of removal of graffiti, for purposes of supervision of the removal. It is an unlawful act, punishable in accordance with the terms of this ordinance, for any person to fail to remove graffiti or pay for the removal of graffiti applied by such person. ORDINANCE NO. 98 - f' PAGE 3 C 00 ?T\� It I SECTION 4. REMOVAL OF GRAFFITI BY PROPERTY OWNER If the perpetrator does not remove graffiti, graffiti shall be removed pursuant to the following provisions: 1. Property Owner Responsibility. It is unlawful for any person who is the owner or who has primary responsibility for control of property or for repair or maintenance of property in the City to permit property that is defaced with graffiti to remain defaced for a period of thirty (30) days after being issued a warning notice about the defacement. 2. Exceptions to Property Owner Responsibility. The removal requirements shall not apply if the property owner or responsible party can demonstrate that: (a) The property owner (residential only) or responsible party lacks the financial ability to remove the defacing graffiti: or (b) The property owner or responsible party is not responsible for the removal of graffiti if the perpetrator removes the graffiti per Section 3 of this Ordinance. The owner of any property in the City shall have the right to contract with the City to remove all such graffiti as may be on such real estate by requesting, in writing, the City Manager or his duly designated agents to do so, and by agreeing to pay, no less than twenty-five dollars ($25.00) per address. SECTION 5 HEARING. The owner or occupant of a lot or parcel subject to abatement under this ordinance may request a hearing by notifying the building official within ten (10) days following the date the city mails a notice of violation. The hearing shall be conducted by a hearing official designated by the City Manager or his designee, for the purpose of determining whether the conditions constitute a public nuisance under the provisions of this ordinance. Unless notice is waived by the owner, the owner shall be provided written notice of the time and place of the hearing at least ten (10) days prior thereto. At the hearing, the owner and the building official may present any evidence relevant to the proceedings, in accordance with reasonable rules adopted by the City Manager or his designee and subject to approval by the city attorney. If the hearing official finds that conditions constituting a nuisance hereunder exist, the hearing official shall issue an order so stating. ORDINANCE NO. 98 - • PAGE 4 C(aLF SECTION 6. RIGHT OF THE CITY TO REMOVE. Right of Entry on Private Property. If the City has requested consent to remove or paint over the offending graffiti and the owner or occupant has refused consent for entry on terms acceptable to the City and consistent with the terms of this Section, the City shall commence abatement and cost recovery proceedings for the graffiti removal according to the provisions specified below. Correction or removal by City —Generally. In the event of the failure, refusal or neglect of the owner or occupant of any premises or property to comply with a notice given him pursuant to this article, it shall be the duty of the City Manager or his duly designated agents to cause the graffiti matter or condition constituting a nuisance to be promptly and summarily abated, in a reasonable and prudent manner, at the expense of the City. The City Manager or his duly designated agents shall carefully determine the cost of such work done and shall charge such cost against the owner of such premises. SECTION 7 PENALTIES - PERPETRATOR. (a) Restitution. In addition to any punishment specified in the Texas Penal Code, the court may order any violator to make restitution to the victim for damages or loss caused directly or indirectly by the violator's offense in the amount or manner determined by the court. In the case of a minor, the parents or legal guardian shall be ordered jointly and severely liable with the minor to make the restitution. (b) Community Service. In -lieu of, or as part of, the penalties specified in this Section, a minor or adult who is convicted of applying graffiti to public or private property may be required to perform community service as described by the court based on the following minimum requirements: (1) The minor or adult shall perform community service. (2) At least one parent or guardian of the juvenile shall be in attendance a minimum of one -hundred percent (100%) of the period of assigned community service. If the parent chooses not to attend community service the penalty prescribed by the court system shall be doubled. (3) The entire period of community service shall be performed under the supervision approved by the Court. (4) A perpetrator found to be in violation of Section 2 shall be fined in any sum not more than $500.00 per day and each day may be deemed a separate offense. ORDINANCE NO. 98 - 22 '•- -� PAGE 5 SECTION 8: PENALTIES — OWNER/OCCUPANT (1) Per Section 4 of this Ordinance the owner or occupant will be given a maximum of 30 days to abate the said violation. (2) An owner or occupant found to be in violation of Section 4 shall be fined in any sum not more than $500.00 per day and each day may be deemed a separate offense. (3) If the City has exercised its right to remove per Section 6 of this Ordinance the City may pursue cost recovery as outlined in Sections 9 & 10. SECTION 9. FILING OF STATEMENT OF EXPENSES INCURRED. After compiling the cost of the work and after charging the same against the owner of the premises, the City Manager or his duly designated agents, shall file a lien on the property if the owner of the premises fails to pay the expenses within 15 days of receipt of statement. To remove a lien from a property the owner must pay the cost of the lien, in addition to, $50.00 per property for administrative costs. SECTION 10. ABATEMENT AND COST RECOVERY PROCEEDINGS. Lien. Upon filing the statement of expenses with the County Clerk, the City shall have a privileged lien upon the land described therein and upon which such improvements have been made, in accordance with the provisions of Texas Codes Annotated, Health and Safety Code, Section 342.001, et seq. Such liens shall be second only to tax liens and liens for street improvements to secure the expenditures so made, and shall bear ten per cent (10%) interest on the amount of such expenditures from the date of such payment by the City. For any such expenditures and interest, suit may be instituted by the City Attorney and recovery and foreclosure of the lien may be had in the name of the City, and the statement of expenses made, or a certified copy thereof, shall be prima facie proof of the amount expended in such work or improvements. Upon payment of the full charges assessed against any property, pursuant to the procedure set forth in this section, the City Manager or his duly designated agents shall be authorized to execute, for and in behalf of the City, a written release of the lien heretofore mentioned, such written release to be on a form prepared and approved in each case, by the City Attorney. ORDINANCE NO. 98 - SECTION 11. TRUST FUND. �� PAGE 6 �_I The City Council hereby creates the City of La Porte Anti -Graffiti Trust Fund. Penalties assessed against violators of this Ordinance shall be placed in the fund, along with any monetary donations received from persons wishing to contribute to the fund. The City Manager or his duly designated agents shall direct the expenditures of moneys in the fund. Such expenditures shall be limited to the payment of the cost of graffiti removal, the payment, and rewards to report violators at the discretion of the City Manager or his duly designated agents, and the costs of administering the Ordinance. The Council may approve such other public purposes as by resolution. The reward shall be in any sum not more than two hundred and fifty dollars for information leading to the capture and conviction of the violator. SECTION 12. SEVERABILITY. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this ordinance, and it is hereby declared to be the intention of this City Council to have passed each section, sentence, phrase or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase or clause, or part thereof, may be declared invalid. SECTION 13. OPEN MEETINGS COMPLIANCE. 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 is 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 Chapter 551, Tx. Gov't 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 14. EFFECTIVE DATE. This Ordinance shall take effect and be in force from and after its passage, approval and publication as required by law. ORDINANCE NO. 98 -_�j -'s PAGE 7 PASSED AND APPROVED this the day of ?u. , 1998. CITY OF LA PORTE Norman L. Malone, Mayor ATTEST: At'aw 1 Marta Gillett, t1 City Secretary Agenda Date Requested: January 26, 1998 Requested By: Guy Rankin Ca�- Department: Planning Report Resolution X Ordinance Exhibits: 1. Ordinance Summary & Recommendation The Planning and Zoning Commission will conduct a Public Hearing on February 19, 1997, to receive input on a proposed amendment to the Zoning Ordinance relating to cellular towers. Council will soon hold a Public Hearing to receive input on the proposed ordinance and consider the recommendation of the Planning and Zoning Commission. Staff has prepared an ordinance establishing a temporary moratorium on the issuance of permits for towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR). This moratorium, if approved, would remain in effect until May 19, 1998. Action Required by Council: Consider approving an ordinance establishing a temporary moratorium on the issuance of permits for towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR). General Fund Water/Wastewater Capital Improvement General Revenue Sharing Other Account Number: Funds Available: Yes No Approved for City Council Agenda Q i . , - aa,.gs Robert T. Herrera Date City Manager 0 0 ORDINANCE NO. 98- 2215 COPY AN ORDINANCE OF THE CITY OF LA PORTE, TEXAS, IMPOSING A TEMPORARY MORATORIUM ON THE ISSUANCE OF PERMITS FOR TOWERS FOR CELLULAR, PERSONAL COMMUNICATIONS SERVICE (PCS), AND SPECIALIZED MOBILE RADIO SERVICE TRANSMITTERS (SMR) , PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR THE EXPIRATION OF THE MORATORIUM; PROVIDING A SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City is in the process of revising its zoning ordinance to provide for the regulation of the location and placement of towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR); in accordance with the Telecommunications Act of 1996; and WHEREAS, the City has the power under its general police power to provide for a temporary moratorium on the issuance of permits for the location and placement of towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR), pending the revision of its zoning ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF.LA PORTE, TEXAS: Section 1. That the Building Official of the City of La Porte shall not issue any zoning permit for the location and placement of towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR) until on May 19, 1998, within the corporate limits of the City of La Porte, Texas. Section 2. That the provisions of this ordinance are severable and the invalidity of any part of this ordinance shall not affect the validity of the remainder of the ordinance. Section 3. The planning department is directed to undertake a study as to the placement and siting of towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR), in accordance with the dictates of the Telecommunications Act of 1996, and the Zoning Ordinance and Comprehensive Plan of the City of La Porte. Section 4. The moratorium on issuance of zoning permits for the location and placement of towers for cellular, personal communications service (PCS), and specialized mobile radio service transmitters (SMR) shall expire on May 19, 1998 at 11:59 p.m., Central Standard Time. Section 5. The provisions of Section 106-141 et seq of the Code of Ordinances of the City of La Porte, relating to the requirement that any person (as defined in the Ordinance No. Mr, 98-22 Page 2 Code of Ordinances of the City of La Porte) desiring to occupy or use land or a structure or desiring to change an existing use or occupancy of land or a structure, shall first apply for and receive a zoning permit for said use, are expressly incorporated into the provisions of this ordinance, as if set forth fully herein. Section 6. 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 is 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 Chapter 551, Tx. Gov't 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 7. This Ordinance shall be effective upon its passage and approval. PASSED AND APPROVED on this the day of 111rUW4.1,1111 1998. CITY OF LA PORTE Ndrman L. Malone, Mayor ATTEST: Marth-b Gillett, City Secretary • 5) • • CONSENT AGENDA - ITEM A REOUE0 FOR CITY COUNCIL AGENDA IAM Agenda Date Requested: January 26 1998 Requested By: S. Gillett W Public Works_4U Report Resolution XXX Ordinance Exhibits: Ordinance Bid Tabulation for Water Well Improvements Bidder's List SUMMARY & RECOMMENDATION Sealed bids were received on December 8, 1998 for water well improvements to Water Well No. 3, located on Fairmont Parkway at South 4`s Street. Bid requests were sent to six (6) area suppliers, with three (3) returning bids. The Projects consists of reconstructing the foundation of the well to conform to TNRCC regulations. The well head elevation is below minimum standards, and will be raised to conform to new requirements. This will also necessitate raising the main and auxiliary pump motors and piping. Because the works requires the removal of the well shaft and pump at the bottom of the well, it is also a good opportunity to inspect and make any repairs to the well pump, which has not been inspected in over 25 years. Low bid meeting specifications was submitted by Weisinger Water Well of Conroe in the amount of $35,800. This amount includes performing all the work described above, but not including parts required for pump repair. It is estimated that the amount required for parts replacement should not exceed $14,200, for a total estimated cost of $50,000. The Utility Capital Improvement Fund included $29,500 for this Project. The difference includes the cost to inspect and repair the down -hole pump as needed. The additional $20,500 needed is available in the Utility CIP Fund Contingency. Action Required by Council: Award the bid for Water Well Improvements to Weisinger Water Well in the amount of $50,000, and appropriate an additional $20,500 from the Utility CIP Fund Contingency for the Project. Availability of Funds: General Fund_ Water/Wastewater XX Capital Improvement General Revenue Sharing Other Account Number: 003-9890-761-100 Funds Available: X YES NO Approved for City Council Agenda �-, 1" 18 Robert T. Herrera Date City Manager CITY OF LA PORTE INTEROFFICE MEMORANDUM 16,1997 TO: STEVE GILLETT, PUBLIC WORKS DIRECTOR FROM: SUSAN KELLEY, PURCHASING AGENT J4 _ / SUBJECT: SEALED BID #0724 — WATER WELL IMPROVEMENTS Advertised, sealed bids #0724 for water well improvement were opened and read on December 8, 1997. Bid requests were mailed to six (6) area suppliers with three (3) returning bids. Low bid meeting specifications was submitted by Weisinger Water Well in the amount of $35,800, excluding options. Please submit your recommendation with an agenda request form by the prescribed time before the next regular council meeting. If there is a need to delay bringing this bid before council, please notify me. Attachment: Bid Tabulation Bid List Bid Copies BID TABULATION - WATER WELL #0724 ,.: 4' 4 .l :.. �... ;�:I:•.::.:��y:..::.:::., it i^ i . .:.... ::: .:.. DESCRIPTION ..:.::.:.:::':::.: ;.. ' ..��'`..��-�. WATER WELL ° �i COMPANY ..::".:;TEXAS: . 1.Water Well Improvements per specifications $35,800.00 $38,500.00 $47,500.00 OPTIONAL BID ITEMS 1. Wire brush well casing and screen $4,500.00 $5,100.00 $4,280.00 2. Jet material from interior of screen $5,500.00 $8,200.00 $6,906.00 3. Bail debris, oil scum, etc. $500.00 $1,200.00 $1,000.00 4. Insert hydrochloric acid $9,500.00 $17,760.00 $14,800.00 5. Inspect well with radial view camera $1,300.00 $1,400.00 $1,200.00 BIDDER'S LIST • WATER WELL IMPROVEMENTS SEALED BID #0724 ALSAY INC BUSSELL & SON 6615 GANT STREET PO BOX 874 HOUSTON TX 77066 TOMBALL TX 77377 FELDER WATER WELL HOLLOWAY CO PO BOX 1033 12660 LAROCHELLE ANGLETON TX 77516-1033 HOUSTON TX 77213 FAX 409-849-2517 LAYNE-TEXAS 5931 BRITTMORE HOUSTON TX 77041 CHAMBER OF COMMERCE PO BOX 996 LA PORTE TX 77572-0996 WEISINGER WATER WELL 2200 EAST DAVIS CONROE TX 77301 BAYSHORE PUBLISH DATES: NOVEMBER 23, 1997 NOVEMBER 30, 1997 E CONSENT AGENDA - ITEM B U e REQUEST FOR CITY C Agenda Date Requested: Requested By: Stephen XX Report Exhibits: 1. 2. Resolution 7 Ordinance NCIL AGENDA ITEM Department: Parks & Recreation Sealed Bid #0725 - Plaster Renovation of Fairmont Park Pool and the Recreation & Fitness Center Pool Bid Tabulation and Bidder's List SUMMARY & RECOMMENDATION The City of La Porte has requested sealed bids for plaster renovation of the City of La Porte, Fairmont Park Pool and the Recreation & Fitness Center Pool. Sealed Bids were mailed to ten vendors. Bids were opened on January 12, 1998. Four bids were received. . The project was bid in sections with a base bid including Item 1) Pool Surface Preparation; and Item 3) Replaster Pool Surface. Item 2) Crack Repair; Item 4) Retiling; and Options 1-2) (see Bid Tabulation) are to be completed on an As Needed basis. Quality Pool and Management, Inc., a reputable pool service company, has submitted low base bid for Items 1 & 3, meeting specifications for this project. Base bid for Item 1 &4 for the RFC Pool is $11,132; Item 1 &3 for Fairmont Park Pool is $20,486.75 for a total base bid by Quality Pool and Management, Inc., of $31,618.75. Additional work specified in the bid, and required to complete the project, will be computed on an as -needed basis. There is evidence that there may be some cracks under the surface of the pool plaster that need to be addressed; however, we will not know how extensive those cracks are until the plaster is removed. In addition, some of the cracks may penetrate under the tile lane markers, border tiles, and coping around the pool. If this occurs then some (or all) of the tile and coping may require replacement. The bid identifies unit costs for replacement of tile, coping, as well as crack repair and coating above the waterline. The extent of needed repairs will be identified and negotiated with the contractor as they become apparent during the course of the project. Staff Recommendation: Staff recommends the award of a the base bid for plaster renovation of the Fairmont Park Pool and the Recreation & Fitness Center Pool in the amount of $31,618.75 to Quality Pool and Management, Inc., with additional charges to be computed on an as needed basis, not to exceed One Thousand Eight Hundred Eighty One Dollars ($1,881.00). Funding for this project has been set aside in the Capital Improvement Budget in the amount of $33,500.00. Action Required by Council: Award contract to Quality Pool and Management, Inc. as low bidder meeting specifications in the amount of $31,618.75 with additional charges as needed, not to exceed a total of $33,500.00 for plaster renovation of the Fairmont Park Pool and the Recreation & Fitness Center Pool. Availability of Funds: General Fund Water/Wastewater XX Capital Improvement General Revenue Sharing Other Account Number: 015-9892-755-11-00 Funds Available: XX YES _ NO Approved for City Council Agenda Robert T. Herrera Date City Manager 0 • BID TABULATION -PLASTER RENOVATION OF POOLS DESCRIPTION QTY QUALITY POOLS PROGRES51VI: CHEMICALS SUNBELT POOL RFC POOL 1) Pool Surface Preparation 2,530 $1.90 $2.37 Included w/Replastering 2) Crack Repair As Needed $5.00 $11.00 $10.00 3) Replaster Pool Surface 2,530 $2.50 $2.71 $5.60 4) Retiling (Price per linear foot) 2" x 2" Tile As Needed $8.00 $11.35 6" x 6" Tile As Needed $11.00 $11.50 ITEM 1&3 TOTAL FOR RFC POOL $11,132.00 $12,852.40 $41,168.00 FA/RMONT POOL 1) Pool Surface Preparation 4313 $2.08 $2.37 Included w/Replastering 2) Crack Repair As Needed $5.00 $11.00 $10.00 3) Replaster Pool Surface 4313 $2.67 $2.71 $4.80 4) Retiling (Price per linear foot) 2" x 2" Tile As Needed $11.35 $11.35 $16.50 6" x 6" Tile As Needed $11.00 $11.50 $40.00 M 1&3 TOTAL FOR FAIRMONT POOL $20,486.75 $21,910.04 $20,710.00 GRAND TOTAL, ITEMS 1&3 $31,618.75 $34,762.44 $61,878.00 OPTIONS:(At Either or Both Pools) 1) Repair of Cracks Above Water Line As Needed $7.00 $8.43 $10.00 2) Replacement of Coping As Needed $13.00 $14.27 $22.50 BIDDER'S LIST SEALED BID #0725 PLASTER RENOVATION OF POOLS AGUA BLUE PO BOX 420242 HOUSTON TX 77242-0242 BLUE HAVEN 2201 HWY 6 SOUTH HOUSTON TX 77077 POOL WORKS INC 16134 ESPINOSA HOUSTON TX 77083 PROGRESSIVE CHEMICALS 2510 FARRELL ROAD HOUSTON TX 77073 SUNBELT POOL SUPPLY 11215 JONES RD WEST SUITE F HOUSTON TX 77065 CHAMBER OF COMMERCE PO BOX 996 LA PORTE TX 77572-0996 AUSTIN POOL PLASTERING 7819 BARBERTON DRIVE HOUSTON TX 77036 OLYMPIC POOLS 6734 LARKWOOD HOUSTON TX 77074 PRATT POOLS 301 CENTER STREET DEER PARK TX 77536 QUALITY POOL 2614 CHERRY LANE PASADENA TX 77502 TOTAL POOL SERVICE 807 TERRYHOLLOW CHANNELVIEW TX 77530 BAYSHORE SUN PUBLISH DATES: DECEMBER 28, 1997 JAN UARY 4, 1998 • 0 CONSENT AGENDA - ITEM C REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: January 6 998 Requested By: Ste hen L. Barr Department: Parks & Recreation XX Report Resolutio Ordinance Exhibits: 1. Sealed Bid #0726 Fiberglass Renovation of San Jacinto Pool 2. Bid Tabulations & Bidder's List SUMMARY & RECOMMENDATION The City of La Porte has requested formal bids for fiberglass renovation of San Jacinto Pool. Bid requests were delivered to thirteen pool resurfacing contractors. Four (4) contractors returned bids for the project; the bids were opened on January 12, 1998. Bids ranged from a low of $26,836.80 to a high of $70,200.00. After consideration of the bids submitted, it was determined that the low bidder meeting specifications for the project was Rainbo Resurfacing, Inc. with a bid of Twenty Nine Thousand, Thirty Nine Dollars and Sixty - Five Cents ($29,039.65). The apparent low bidder, Sunbelt Pools, Inc., did not include resurfacing as a part of their bid, therefore did not meet specifications for the project. Budgeted funds available for this project are $34,500. Staff Recommendation: Staff recommends that the bid submitted by Rainbo Resurfacing, Inc. be accepted as low bidder meeting specifications for this project. Action Required by Council: Consider award of contract to Rainbo Resurfacing, Inc. to renovate fiberglass at San Jacinto Pool. Availability of Funds: General Fund Water/Wastewater XX Capital Improvement General Revenue Sharing N/A Account Number: 015-_9.892-754-1100 Funds Available: XX YES NO Approved for City Council Agenda Robert T. Herrera City Manager I •ZL-CIE Date BID TABULATION -FIBERGLASS RENOVATION OF POOLS DESCRIPTION QTY RAINBO RESURFACING AMERICAN POOLS SUNBELT POOL QUALITY POOLS SAN JACINTO POOL 1) Pool Surface Preparation 5591 $2.194 $2.110 $4.800 $21,600.00 2) Fiberglass Coating 5591 $3.000 $5.280 No Bid $48,600.00 TOTAL $29,039.654 $41,317.490 $26,836.800 $70,200.00 (This vendor used 6,300 sq. footage to multiply, so their actual total is $32,725.00) s • • BIDDER'S LIST • SEALED BID #0726 FIBERGLASS RENOVATION OF POOL AGUA BLUE PO BOX 420242 HOUSTON TX 77242-0242 BLUE HAVEN 2201 HWY 6 SOUTH HOUSTON TX 77077 FIBERGLASS POOL REPAIR BY BLANCO 14710 JAMES RIVER LANE HOUSTON TX 77084 OLYMPIC POOLS 6734 LARKWOOD HOUSTON TX 77074 PRATT POOLS 301 CENTER STREET DEER PARK TX 77536 QUALITY POOL 2614 CHERRY LANE PASADENA TX 77502 SUNBELT POOL SUPPLY 11214 JONES RD WEST SUITE F HOUSTON TX 77065 CHAMBER OF COMMERCE PO BOX 996 LA PORTE TX 77572-0996 AUSTIN POOL PLASTERING 7819 BARBERTON DRIVE HOUSTON TX 77036 DOUGHERTY & STONE RESURFACING 917 HALSTED STREED CHICAGO HEIGHTS IL 60411 FIBERGLASS TECHNOLOGIES INC 10528 TANNER ROAD HOUSTON TX 77041 POOL WORKS INC 6134 ESPINOSA HOUSTON TX 77083 PROGRESSIVE CHEMICALS 2510 FARRELL ROAD HOUSTON TX 77073 TOTAL POOL SERVICE 807 TERRYHOLLOW CHANNELVIEW TX 77530 BAYSHORE SUN PUBLISH DATES: DECEMBER 28, 1997 JANUARY 4, 1998 0 0 City of La Porte Interoffice Memorandum To: Mayor and City Council From: Jeff Litchfield, Assistant City Manager teve Gillett, Director of Public Works Date: January 20, 1998 Subject: Additional Water Capacity Purchase by the La Porte Area Water Authority Background The La Porte Area Water Authority (the "Authority") was created by an act of the Texas Legislature to ensure an adequate supply of surface water for the Bayshore area, in response to a mandate by the Hams -Galveston Coastal Subsidence District to convert to surface water. The Act gives the City Council of the City of La Porte the power to name the members of the Authority's board of directors, and final approval of contracts entered into by the Authority. The Authority, after approval by the voters in 1982, began developing a plan to provide surface water. After studying various alternatives, the Authority determined the most cost-effective solution to be purchase of capacity at the City of Houston's Southeast Water Purification Plant, then under design, and to construct transmission facilities to the Authority's customers. The Authority negotiated contracts with the cities of La Porte, Shoreacres and Morgan's Point, as well as the Bayshore Municipal Utility District, in November 1987. The contract with the City of Houston to purchase capacity was finalized in December 1987. Funding in the amount of $9.8 million was secured through the Texas Water Development Board to purchase the capacity and design and construct transmission facilities. The Authority began taking treated surface water from the Southeast Plant on March 20, 1991. The Authority purchased 4.2 million gallons per day (mgd) of treated surface water, which was split between the Authority's customers as follows: La Porte — 90.97% (including the former Bay MUD), Morgan's Point — 4.29%, and Shoreacres — 4.47%. Currently, the cities of Shoreacres and Morgan's Point are at or near their capacity, and the City of La Porte is at 88% of capacity. The original study prepared by Espey, Huston & Associates projected the City of La Porte would reach its capacity in 1999. However, projected populations did not increase at the rate projected in the study. The population was expected to increase by 2.74% per year from 1986 to 1990 and by 2.54% per year from 1990 to 1997 and the actual population increase was .77% per year for 1986 to 1990 and 2.35% for 1990 to 1997. At the current population increase of 2.35% per year, the capacity will be reached in the year 2003. Over the last several years, there has been discussion of the City of Houston expanding the Southeast Plant or even re -engineering to provide more thru-put. However, at this time, the City of Houston has no plans to proceed with either of these options. • • Opportunity The City of Galveston has a relationship with Gulf Coast Water Authority similar to La Porte and LPAWA. During the summer of 1996, the City of Galveston, owner of 16 mgd through the Gulf Coast Water Authority, experienced difficulty in taking its capacity. This was due to the extreme demand experienced during this period, as well as Galveston's location at the end of a long transmission line. Studies indicated that Gulf Coast Water Authority could expand its Texas City Plant and construct new transmission facilities at a lower cost than receiving water from the Southeast Plant. The situation mentioned above requires Galveston to sell its capacity at the Southeast Plant. The Gulf Coast Water Authority began discussion with Co -Participants at the Southeast Plant to determine interest in the purchase of Galveston's capacity. On August 13, 1997, the LPAWA board of directors indicated an interest in purchasing additional capacity. At a subsequent meeting held August 27, 1997, the Board passed a resolution indicating an interest in purchasing 2.5 mgd of additional capacity at a price of $1.1688 per gallon, which is the price paid by the Authority in 1987. Four other Co -Participants indicated a willingness to purchase capacity, with the five requests totaling 15.5 mgd. The LPAWA subsequently indicated an interest in the remaining .5 mgd, for a total request of 3 mgd. As mentioned in the previous section, the original purchase of water from the Southeast Plant buy -in was expected to last the City until 1999 but population growth has extended the date to 2003. It was assumed in the study that plans would be made for additional capacity by that time. At this time, there are no plans to expand the Southeast Plant. Since we are at 88% of our capacity, this causes the City great concern and hampers our ability to provide long term planning and commitments for certain areas. For example, you might recall that several recent water agreements to our industry clients have had term limits on them as we have had to protect our ability to provide capacity to our residents. We believe the opportunity to purchase this additional capacity, at 1987 prices is one that should not be passed up and will provide us excellent growth capacity. Attached as Attachment A is a newly prepared graph, based on current population estimates and different projected growth rates. The graph shows that this purchase should provide adequate potable water for a 20 to 30 year period. The graph was prepared with assumptions in population growths of 1.5% to 3% per year. As mentioned earlier, our actual growth rate has been 2.35% for the last seven years. Additionally, based on the assumption that the City of La Porte will be the same percentage of the new capacity that it has of the existing capacity and that the daily per capita consumption continues to average 113.5 gallons, this water purchase should provide the City with enough water to support a population of 64,000. 2 Steps Taken by LPAWA Since the decision by the LPAWA to consider the purchase of additional capacity, the following steps have been taken. Espey, Huston & Associates, the designer of the current Transmission System, was engaged to review the impact on the transmission system if an additional 3 mgd were added to the supply system. Their report was favorable with only minor adjustments needing to be made to the system and its operation. 2. Reviewed a funding plan that allows the Authority to set aside, from currently planned activities and operations, over $2,000,000 to pay for the additional capacity. This represents about 57% of the amount needed to fund the 3 mgd purchase. In addition to this amount, the LPAWA expects to save at least $500,000 in refunding the 1988 Bond issues. This refunding is targeted for December 1998. Attached as Attachments B and C are documents provided to the LPAWA at an October 1997 meeting. Attachment B was Item 6 on their agenda and covered the Funds Available for Purchase of Additional Capacity. Attachment C was Item 7 on their Agenda and dealt with Refunding of LPAWA Debt. As noted in the documents, it is anticipated that any additional funds needed to pay for the purchase could be obtained from the three entities or local industries needing water. The LPAWA could also borrow the funds needed to complete the purchase. Where We Are Now In order for this project to work, it is necessary for the Gulf Coast Water Authority to construct the 16 mgd expansion to the Texas City plant. To do this, they have to issue debt of about $20 million. Before they can issue debt, their bond counsel and financial adviser has determined that they need firm commitments from the entities participating in the purchase of the 16 mgd at the Southeast Plant. They are not comfortable with a letter of intent or a resolution stating that the entities want to purchase funds. Gulf Coast Water Authority began discussions by providing the entities with two options, either place the money in and Escrow account, with a third party bank, where the funds are due and payable once the water is available or you could pre -pay for the water you were purchasing at a rate discounted for the time value of money (in this case, about 99 cents per gallon versus $1.1688 per gallon in three years. As mentioned earlier, there are four entities participating in the purchase. One of the entities, the City of League City has borrowed the money and will pre -pay $5 million for their share of the water. The other two entities are selling bonds and will place their money in escrow. Staff, on behalf of the LPAWA argued that we did not want to incur the expense of selling debt since our initial plans were to pay cash for the water in three or so years and we felt that they should pay for our additional expenses if they forced us to issue debt at this point. After negotiating with them, we were able to reach an agreement where we pre -pay $500,000 at this time and the remainder will not be due until the water is available. If the deal were to fall through, we would get our funds, with interest, returned to us. 3 Summary and Recommendation The LPAWA is faced with an opportunity to secure, on behalf of the City of La Porte, water capacity which will assure the ability to meet the expectations of future growth needs in the City. This capacity can be purchased now with delivery in three years. At this time, this appears to be the most favorable option. If this opportunity is missed, we are at the mercy of the City of Houston as it relates to the expansion of the Southeast Plant our we would have to find an alternate source. In order to take advantage of this opportunity, the LPAWA and the City of La Porte will need to commit to the purchase of the water, recognizing that $500,000 will be paid from current LPAWA funds as a pre -payment of the purchase and an additional $2.9 million will be due in approximately 3 years. It is anticipated that $1.5 to $2 million of these funds will be available in the LPAWA and that the additional funds totaling $.9 to .$1.4 million will need to come from industry or the City of La Porte or the other member cities. 4 Attachment A Jr- I II 4 3 Projected Water Usage vs Capacity ON 65 & 6 O� �� �� Nb �'� �� rLN �O `L� � `L� r N O� O� 45 �O V f �O �O rL0 �O rp 'p rp 'p rL0 �O rO rp 'f rL0 �O ry0 �O Years To be reviewed in conjunction with notes on opposite page. 0- Attachment B • • Sic M (a - La Porte Area Water Authority Interoffice Memorandum To: LPAWA Board Members Robert T. Herrera, General Manager Steve Gillett, Director of Public Works From: ff Litchfield, Director of Finance Date: October 1, 1997 Subject: Funds Available for Purchase of Additional Capacity At the August Board Meeting, the attached memorandum was reviewed. It is being presented again to refresh our memories of possible funding methods. La Porte Area Water Authority Interoffice Memorandum To: LPAWA Board Members Robert T. Herrera, General Manager Steve Gillett, Director of Public Works From: eff Litchfield, Director of Finance Date: August 20, 1997 Subject: Hypothetical Funds Available for Purchase of Additional Capacity With the recent news of the opportunity to obtain additional capacity for the La Porte Area Water Authority and its customers, I have taken the liberty to prepare a work sheet that shows funds that will more than likely be available resources. The work sheet that is attached shows that $2,013,516 will be available at 9/30/01, (four years from now). Assumptions in the work sheet are: Left Over Distribution Funds — These are funds left over from the bonds that were sold in 1988. They can be used for improvements to the system, including the purchase of additional capacity. Contingency Fund — These funds represents amounts that have to be reserved under the current bond ordinance. This type of contingency is special to the Water Authority Bonds and I fully expect them to be freed up with the refunding in 1998. Billing for Capital Reserve — This is the Capital Reserve Fee already approved by the Board and for which we began billing the three cities this year. Debt Service Difference — This amount represents a savings that will be proposed next year. In the past, we have billed the Cities the exact amount of the Debt Service each year. Interest that has been earned on the billed funds have accumulated in the Debt Service Fund to give us a working capital balance. At this point, the working capital plus monthly billings is sufficient to cover the first debt payment, which occurs in November each year. It will be staffs recommendation that the billing to the Cities be lowered by $25,000 per year. I suggest we approach the entities and allow this $25,000 to continue to be billed and be accumulated in the reserve fund. Our purpose for this logic is that it is easier on the customers to have a constant cost for the service, i.e. not have large increases and decreases in fixed costs from year to year. Interest Income will be earned on these funds and would be available for use. Interest is based on a yield of 5.75%. Current yields are 5.90%. 0 0 Using the information discussed on the previous page, it calculates to a monetary amount of $2,013,516 being available in four years. This translates to a capacity purchase of 1.7 million gallons. The Authority has expressed it's desire to purchase an additional 2.5 million gallons. If it were to be successful in obtaining that amount, potential funding sources for the additional $911,484 would be the entities, industry and possibly the Port of Houston. I applaud the Authority for their willingness to reserve these funds in the past and believe their foresight has placed us in a position to make the best of this favorable opportunity. 10 Work Sheet Showing Hypothetical Growth of Funds Available for Puchase of Additional Capacity Entity Attributed To: • Total La Porte Morgan's Point Shoreacres Current Funds (9/30/96): Left over Distribution Funds 313,682 268,198 22,585 22,899 Contingency Fund - Transmission 100,000 85,500 7,300 7,200 Contingency Fund - Plant 100,000 90,970 4,290 4,740 Total Current Funds 513,682 444,668 34,175 34,839 Future Funds: Year 1 (FY 96-97) Billing for Capital Reserve 176,295 160,376 7,563 8,356 Interest Income 34,257 29,863 2,167 2,226 End of Year Balance (9/30/97) 724,234 634,907 43,905 45,421 Year 2 (FY 97-98) Billing for Capital Reserve 176,295 160,376 7,563 8,356 Interest Income 46,363 40,802 2,727 2,835 End of Year Balance (9/30/98) 981,149 865,949 56,362 58,838 Year 3 (FY 98-99) Billing for Capital Reserve 176,295 160,376 7,563 8,356 Debt Service Difference 25,000 22,059 1,448 1,493 Interest Income 61,806 54,677 3,483 3,646 End of Year Balance (9/30/99) 1,290,613 1,143,863 71,582 75,168 Year 4 (FY 99-00) Billing for Capital Reserve 176,295 160,376 7,563 8,356 Debt Service Difference 25,000 22,059 1,448 1,493 Interest Income 79,600 70,657 4,358 4,585 End of Year Balance (9/30/00) 1,633,315 1,451,632 88,434 93,248 Year 5 (FY 00-01) Billing for Capital Reserve 176,295 160,376 7,563 8,356 Debt Service Difference 25,000 22,059 1,448 1,493 Interest Income 99,306 88,354 5,327 5,625 End of Year Balance (9/30/01) 2,013,516 1,793,078 107,130 113,307 Estimated Capacity at $1.17 per gallon (shown in gallons) Current 439,044 380,058 29,209 29,777 At end of Year 1 619,004 542,656 37,526 38,822 At end of Year 838,588 740,127 48,172 50,289 At end of Year 3 1,103,088 977,661 61,181 64,246 At end of Year 4 1,395,995 1,240,711 75,584 79,700 At end of Year 5 1.720.954 1,532,546 91,564 96,844 Attachment C I). • rkc Vn 1 La Porte Area Water Authority Interoffice Memorandum To: LPAWA Board Members Robert T. Herrera, General Manager Steve Gillett, Director of Public Works From: Jeff Litchfield, Director of Finance Date: October 1, 1997 Subject: Refunding of LPAWA Debt As background information, the La Porte Area Water Authority issued debt to construct the transmission lines and to purchase capacity at the Southeast Water Purification Plant. The debt was issued in 1988 and had an average interest rate of 6.87%, an average life of 18.89 years and final maturity 30 years after issuance. The debt was issued where each year's debt service requirements would be about $825,000. The current holder of these bonds is the Texas Water Development Board. When interest rates declined several years ago, Staff explored refunding a portion of the debt so expense payments by the Authority could be lowered. Staff was informed by Bond Council that we could not refund at this time because the underlying bonds had already been refunded by the Texas Water Development Board. Because the underlying bonds had been refunded, the Authority could not Advance Refund its outstanding debt. The restriction is caused by the Tax Reform act of 1986 which tightened the rules for advance refundings. Congress was closing a loop hole that allowed multiple advance refundings of tax exempt debt because of the saturation it caused. As an example, the following was actually occurring because of the high interest rates in the early 80's: Entity issues debt for a $10 million project at 10% Interest rate lowers to 8.7% and they advance refund Interest rate lowers again to 7.6% and they again advance refund Interest rate lowers again to 6.2% and they advance refund once again. Since bonds are issued with specific call dates, when you advance refund, the original bonds remain outstanding but are considered defeased because funds have been "escrowed" to retire them. The example 'mentioned above would result in $40 million in tax exempt debt being issued for a $10 million dollar project and the three refunded issues would be outstanding until their call dates. On the positive side, the Authority can Current Refund in December, 1998. Current Refunding occurs when the bonds are refunded on the Call Date. The new debt is issued and the old debt is paid off or retired. If interest rates are favorable in December, 1998, it would be wise to refund. Since the Authority now has a proven track record, they would be able to issue debt on their own and could be relieved of the costly restrictions imposed by participating in state bonds. 13 In order to understand the impact of a refunding, I have prepared several spread sheets that contain financial information. The information for interest rates was obtained from the Wall Street Jouma/ and should be representative of current market rates. There is no guarantee that these rates will be the same or similar next year. The first two Exhibits show the debt service for each issue that will be outstanding on December 1, 1998. At December 1, 1998, the next principal payment will be due on December 1, 1999, which falls into fiscal year 2000. Exhibit 3 is a combination of both issues. There are several different methods of structuring the debt that is refunded. Four possible scenarios are presented below. Exhibit 4A contains the scenario where bonds are refunded in a manner that allows for level annual debt payments. In other words, the amount we pay each year would be similar from year to year. Our current bonds are structured in this manner. This method is good for those who do not foresee any new debt issues and want static debt service payments. Exhibit 5A contains the scenario where bonds are issued and the savings obtained from the refunding are received up front. This method would be used by those who want to get their savings immediately and use the funds to offset other costs. In this method, debt service would drop drastically for a couple of years then return to its previous level. Exhibit 6A contains the scenario where bonds are issued and the savings obtained at the end of the period. This method is used where your payments are kept at the same level as the old bonds. The advantage is that the new debt is paid off earlier than the old debt. Exhibit 7A contains the scenario where bonds are issued and the amount you pay declines from year to year. This method is used by entities where they know new debt will need to be issued in future years. The advantage of this method is that wedges are created where new debt can be layered on top of other existing debt and the variance of total debt paid from year to year for all issues is minimized. The City of La Porte has made good use of this method of issuing debt. Exhibits 48, 58, 68 and 78 are potential savings reports for the corresponding refunding scenarios. Included in the scenarios and the savings reports are allowances for bond issuance costs estimated at $250,000. As you can see by browsing the savings reports, the potential for refunding is very positive at today's interest rates. A summary of the various scenarios, compared to the current issue, is as follows: Present Refunding Average Average Budget Value Method Exhibit Life Coupon Savings Savings Current 3 10.9 6.92% Level 4 10.6 5.46% 966,391 623,556 Up Front 5 11.1 5.51% 671,942 609,700 At End 6 9.3 5.33% 1,691,100 710,809 Declining 7 10.1 5.41% 1,237,788 648,425 In conclusion, if the Bond Market continues to be favorable, the Authority will be able to refund its outstanding debt in late 1998 and obtain substantial savings. I If • • Exhibit 1 La Porte Area Water Authority Bond Maturity Schedule For Bonds Maturing After December 1, 1998 Call Date Water Supply Contract Revenue Bonds, Series I, 1988 Issued for Water Purification Plant Purchase FY Ending Principal Interest Rate Interest Total 2000 135,000.00 6.40% 285,557.50 420,557.50 2001 145,000.00 6.50% 276,525.00 421,525.00 2002 155,000.00 6.60% 266,697.50 421,697.50 2003 165,000.00 6.70% 256,055.00 421,055.00 2004 180,000.00 6.80% 244,407.50 424,407.50 2005 190,000.00 6.85% 231,780.00 421,780.00 2006 205,000.00 6.90% 218,200.00 423,200.00 2007 220,000.00 6.95% 203,482.50 423,482.50 2008 235,000.00 6.95% 187,671.25 422,671.25 2009 250,000.00 6.95% 170,817.50 420,817.50 2010 265,000.00 6.95% 152,921.25 417,921.25 2011 285,000.00 7.00% 133,737.50 418,737.50 2012 305,000.00 7.00% 113,087.50 418,087.50 2013 330,000.00 7.00% 90,862.50 420,862.50 2014 350,000.00 7.05% 66,975.00 416,975.00 2015 375,000.00 7.05% 41,418.75 416,418.75 2016 400,000.00 7.05% 14,100.00 414,100.00 4,190,000.00 2,954,296.25 7,144,296.25 Average Life 10.6 years as of 12/1/98 Average Coupon 6.92% Is Exhibit 2 La Porte Area Water Authority Bond Maturity Schedule For Bonds Maturing After December 1, 1998 Call Date Water Supply Contract Revenue Bonds, Series II, 1988 Issued for Construction of Transmission Lines FY Ending Principal Interest Rate Interest Total 2000 120,000.00 6.40% 283,432.50 403,432.50 2001 130,000.00 6.50% 275,367.50 405,367.50 2002 140,000.00 6.60% 266,522.50 406,522.50 2003 150,000.00 6.70% 256,877.50 406,877.50 2004 160,000.00 6.80% 246,412.50 406,412.50 2005 170,000.00 6.85% 235,150.00 405,150.00 2006 185,000.00 6.90% 222,945.00 407,945.00 2007 195,000.00 6.95% 209,786.25 404,786.25 2008 210,000.00 6.95% 195,712.50 405,712.50 2009 225,000.00 6.95% 180,596.25 405,596.25 2010 240,000.00 6.95% 164,437.50 404,437.50 2011 255,000.00 7.00% 147,172.50 402,172.50 2012 275,000.00 7.00% 128,622.50 403,622.50 2013 295,000.00 7.00% 108,672.50 403,672.50 2014 315,000.00 7.05% 87,243.75 402,243.75 2015 335,000.00 7.05% 64,331.25 399,331.25 2016 360,000.00 7.05% 39,832.50 399,832.50 2017 385,000.00 7.05% 13,571.25 398,571.25 4,145,000.00 3,126,686.25 7,271,686.25 Average Life 11.3 years as of 12/1/98 Average Coupon 6.93% E Exhibit 3 La Porte Area Water Authority Bond Maturity Schedule For Bonds Maturing After December 1, 1998 Call Date Water Supply Contract Revenue Bonds, Series I & Series II, 1988 Combined FY Ending Principal Interest Rate Interest Total 2000 255,000.00 6.40% 568,990.00 823,990.00 2001 275,000.00 6.50% 551,892.50 826,892.50 2002 295,000.00 6.60% 533,220.00 828,220.00 2003 315,000.00 6.70% 512,932.50 827,932.50 2004 340,000.00 6.80% 490,820.00 830,820.00 2005 360,000.00 6.85% 466,930.00 826,930.00 2006 390,000.00 6.90% 441,145.00 831,145.00 2007 415,000.00 6.95% 413,268.75 828,268.75 2008 445,000.00 6.95% 383,383.75 828,383.75 2009 475,000.00 6.95% 351,413.75 826,413.75 2010 505,000.00 6.95% 317,358.75 822,358.75 2011 540,000.00 7.00% 280,910.00 820,910.00 2012 580,000.00 7.00% 241,710.00 821,710.00 2013 625,000.00 7.00% 199,535.00 824,535.00 2014 665,000.00 7.05% 154,218.75 819,218.75 2015 710,000.00 7.05% 105,750.00 815,750.00 2016 760,000.00 7.05% 53,932.50 813,932.50 2017 385,000.00 7.05% 13,571.25 398,571.25 8, 335, 000.00 6, 080, 982.50 14,415, 982.50 Average Life 10.9 years as of 12/1/98 Average Coupon 6.92% Average Annual 823,770.43 1� Exhibit 4A La Porte Area Water Authority Bond Maturity Schedule Potential Refunding Bonds for Both Series With Level Annual Debt Payments FY Ending Principal Interest Rate Interest Total 2000 315,000.00 4.50% 461,342.50 776,342.50 2001 330,000.00 4.60% 446,665.00 776,665.00 2002 345,000.00 4.70% 430,967.50 775,967.50 2003 360,000.00 4.80% 414,220.00 774,220.00 2004 380,000.00 4.90% 396,270.00 776,270.00 2005 395,000.00 5.00% 377,085.00 772,085.00 2006 420,000.00 5.10% 356,500.00 776,500.00 2007 440,000.00 5.20% 334,350.00 774,350.00 2008 465,000.00 5.30% 310,587.50 775,587.50 2009 490,000.00 5.40% 285,035.00 775,035.00 2010 515,000.00 5.50% 257,642.50 772,642.50 2011 545,000.00 5.60% 228,220.00 773,220.00 2012 575, 000.00 5.70% 196, 572.50 771, 572.50 2013 605,000.00 5.80% 162,640.00 767,640.00 2014 645, 000.00 5.90% 126, 067.50 771, 067.50 2015 680,000.00 6.00% 86,640.00 766,640.00 2016 720,000.00 6.10% 44,280.00 764,280.00 2017 360,000.00 6.20% 11,160.00 371,160.00 8,585,000.00 4,926,245.00 13, 511,245.00 Average Life 10.6 years as of 12/1/98 Average Coupon 5.46% Average Annual 772,071.14 E L' 0 Exhibit 4B La Porte Area Water Authority Savings Report For Potential Refunding With Level Annual Debt Payments Existing Proposed Cumulative FY Ending Debt Service Debt Service Savings Savings 1999 292,325.00 230,671.25 61,653.75 61,653.75 2000 823,990.00 776,342.50 47,647.50 109,301.25 2001 826,892.50 776,665.00 50,227.50 159,528.75 2002 828,220.00 775,967.50 52,252.50 211,781.25 2003 827,932.50 774,220.00 53,712.50 265,493.75 2004 830,820.00 776,270.00 54,550.00 320,043.75 2005 826,930.00 772,085.00 54,845.00 374,888.75 2006 831,145.00 776, 500.00 54, 645.00 429, 533.75 2007 828,268.75 774,350.00 53,918.75 483,452.50 2008 828,383.75 775,587.50 52,796.25 536,248.75 2009 826,413.75 775,035.00 51,378.75 587,627.50 2010 822,358.75 772,642.50 49,716.25 637,343.75 2011 820,910.00 773,220.00 47,690.00 685,033.75 2012 821, 710.00 771, 572.50 50,137.50 735,171.25 2013 824,535.00 767,640.00 56,895.00 792,066.25 2014 819,218.75 771,067.50 48,151.25 840,217.50 2015 815,750.00 766,640.00 49,110.00 889,327.50 2016 813,932.50 764,280.00 49,652.50 938,980.00 2017 398,571.25 371,160.00 27,411.25 966,391.25 Totals 14,708,307.50 13,741,916.25 966,391.25 Present Value of Savings 623,556.01 at 5.75% LIP • E Exhibit 5A La Porte Area Water Authority Bond Maturity Schedule Potential Refunding Bonds for Both Series With Savings Up Front FY Ending Principal Interest Rate Interest Total 2000 100, 000.00 4.50% 471,130.00 571,130.00 2001 100,000.00 4.60% 466,580.00 566,580.00 2002 295,000.00 4.70% 457,347.50 752,347.50 2003 380,000.00 4.80% 441,295.00 821,295.00 2004 400,000.00 4.90% 422,375.00 822,375.00 2005 420,000.00 5.00% 402,075.00 822,075.00 2006 455,000.00 5.10% 379,972.50 834,972.50 2007 475,000.00 5.20% 356,020.00 831,020.00 2008 500,000.00 5.30% 330,420.00 830,420.00 2009 525,000.00 5.40% 302,995.00 827,995.00 2010 545,000.00 5.50% 273,832.50 818,832.50 2011 575,000.00 5.60% 242,745.00 817,745.00 2012 605,000.00 5.70% 209,402.50 814,402.50 2013 650,000.00 5.80% 173,310.00 823,310.00 2014 685,000.00 5.90% 134,252.50 819,252.50 2015 720,000.00 6.00% 92,445.00 812,445.00 2016 765,000.00 6.10% 47,512.50 812,512.50 2017 390,000.00 6.20% 12,090.00 402,090.00 8,585,000.00 5,215,800.00 13,800,800.00 Average Life 11.1 years as of 12/1/98 Average Coupon 5.51 % Average Annual 788,617.14 Exhibit 5B La Porte Area Water Authority • Savings Report For Potential Refunding With Savings Up Front Existing Proposed Cumulative FY Ending Debt Service Debt Service Savings Savings 1999 292,325.00 235,565.00 56,760.00 56,760.00 2000 823,990.00 571,130.00 252,860.00 309,620.00 2001 826,892.50 566,580.00 260,312.50 569,932.50 2002 828,220.00 752,347.50 75,872.50 645,805.00 2003 827,932.50 821,295.00 6,637.50 652,442.50 2004 830,820.00 822,375.00 8,445.00 660,887.50 2005 826,930.00 822,075.00 4,855.00 665,742.50 2006 831,145.00 834, 972.50 (3,827.50) 661, 915.00 2007 828,268.75 831,020.00 (2,751.25) 659,163.75 2008 828,383.75 830,420.00 (2,036.25) 657,127.50 2009 826,413.75 827,995.00 (1,581.25) 655,546.25 2010 822,358.75 818,832.50 3,526.25 659,072.50 2011 820,910.00 817,745.00 3,165.00 662,237.50 2012 821,710.00 814,402.50 7,307.50 669,545.00 2013 824,535.00 823,310.00 1,225.00 670,770.00 2014 819,218.75 819,252.50 (33.75) 670,736.25 2015 815,750.00 812,445.00 3,305.00 674,041.25 2016 813,932.50 812,512.50 1,420.00 675,461.25 2017 398, 571.25 402, 090.00 (3,518.75) 671, 942.50 Totals 14,708,307.50 14,036,365.00 671,942.50 Present Value of Savings 609,700.64 at 5.75% a• • • Exhibit 6A La Porte Area Water Authority Bond Maturity Schedule Potential Refunding Bonds for Both Series With Savings At End FY Ending Principal Interest Rate Interest Total 2000 370,000.00 4.50% 449,455.00 819,455.00 2001 390,000.00 4.60% 432,160.00 822,160.00 2002 410,000.00 4.70% 413,555.00 823,555.00 2003 430,000.00 4.80% 393,600.00 823,600.00 2004 450,000.00 4.90% 372,255.00 822,255.00 2005 475,000.00 5.00% 349,355.00 824,355.00 2006 500,000.00 5.10% 324,730.00 824,730.00 2007 525,000.00 5.20% 298,330.00 823,330.00 2008 555,000.00 5.30% 269,972.50 824,972.50 2009 585,000.00 5.40% 239,470.00 824,470.00 2010 620,000.00 5.50% 206,625.00 826,625.00 2011 655,000.00 5.60% 171,235.00 826,235.00 2012 690,000.00 5.70% 133,230.00 823,230.00 2013 730,000.00 5.80% 92,395.00 822,395.00 2014 775,000.00 5.90% 48,362.50 823,362.50 2015 425,000.00 6.00% 12,750.00 437,750.00 2016 0.00 6.10% 0.00 0.00 2017 0.00 6.20% 0.00 0.00 8,585,000.00 Average Life Average Coupon Average Annual 4,207,480.00 9.3 years as of 12/1/98 5.33% 825, 321.29 12,792,480.00 as Exhibit 6B La Porte Area Water Authority • Savings Report For Potential Refunding With Savings At End Existing Proposed Cumulative FY Ending Debt Service Debt Service Savings Savings 1999. 292, 325.00 224, 727.50 67, 597.50 67, 597.50 2000 823,990.00 819,455.00 4,535.00 72,132.50 2001 826,892.50 822,160.00 4,732.50 76,865.00 2002 828,220.00 823,555.00 4,665.00 81,530.00 2003 827,932.50 823,600.00 4,332.50 85,862.50 2004 830,820.00 822,255.00 8,565.00 94,427.50 2005 826,930.00 824,355.00 2,575.00 97,002.50 2006 831,145.00- 824,730.00 6,415.00 103,417.50 2007 828,268.75 823,330.00 4,938.75 108,356.25 2008 828,383.75 824,972.50 3,411.25 111,767.50 2009 826,413.75 824,470.00 1,943.75 113,711.25 2010 822,358.75 826,625.00 (4,266.25) 109,445.00 2011 820,910.00 826,235.00 (5,325.00) 104,120.00 2012 821,710.00 823,230.00 (1,520.00) 102,600.00 2013 824,535.00 822,395.00 2,140.00 104,740.00 2014 819,218.75 823,362.50 (4,143.75) 100,596.25 2015 815,750.00 437,750.00 378,000.00 478,596.25 2016 813,932.50 0.00 813,932.50 1,292,528.75 2017 398, 571.25 0.00 398, 571.25 1,691,100.00 Totals 14,708,307.50 13,017,207.50 1,691,100.00 Present Value of Savings 710,809.53 at 5.75% a3 11 • Exhibit 7A La Porte Area Water Authority Bond Maturity Schedule Potential Refunding Bonds for Both Series With Declining Payments FY Ending Principal Interest Rate Interest Total 2000 365,000.00 4.50% 455,972.50 820,972.50 2001 380,000.00 4.60% 439,020.00 819,020.00 2002 395,000.00 4.70% 420,997.50 815,997.50 2003 410,000.00 4.80% 401,875.00 811,875.00 2004 425,000.00 4.90% 381,622.50 806,622.50 2005 440,000.00 5.00% 360,210.00 800,210.00 2006 455,000.00 5.10% 337,607.50 792,607.50 2007 470,000.00 5.20% 313,785.00 783,785.00 2008 485,000.00 5.30% 288,712.50 773,712.50 2009 500,000.00 5.40% 262,360.00 762,360.00 2010 515,000.00 5.50% 234,697.50 749,697.50 2011 530,000.00 5.60% 205,695.00 735,695.00 2012 545,000.00 5.70% 175,322.50 720,322.50 2013 560,000.00 5.80% 143,550.00 703,550.00 2014 575,000.00 5.90% 110,347.50 685,347.50 2015 590,000.00 6.00% 75,685.00 665,685.00 2016 605,000.00 6.10% 39,532.50 644,532.50 2017 340,000.00 6.20% 10,540.00 350,540.00 8, 585, 000.00 4, 657, 532.50 13, 242, 532.50 Average Life 10.1 years as of 12/1/98 Average Coupon 5.41 % Average Annual 854,356.94 aIf i� Exhibit 7B La Porte Area Water Authority • Savings Report For Potential Refunding With Declining Payments Existing Proposed Cumulative FY Ending Debt Service Debt Service Savings Savings 1999 292,325.00 227,986.25 64,338.75 64,338.75 2000 823,990.00 820,972.50 3,017.50 67,356.25 2001 826,892.50 819,020.00 7,872.50 75,228.75 2002 828,220.00 815,997.50 12,222.50 87,451.25 2003 827,932.50 811,875.00 16,057.50 103,508.75 2004 830,820.00 806,622.50 24,197.50 127,706.25 2005 826,930.00 800,210.00 26,720.00 154,426.25 2006 831,145.00 792,607.50 38,537.50 192,963.75 2007 828,268.75 783,785.00 44,483.75 237,447.50 2008 828,383.75 773,712.50 54,671.25 292,118.75 2009 826,413.75 762,360.00 64,053.75 356,172.50 2010 822,358.75 749,697.50 72,661.25 428,833.75 2011 820,910.00 735,695.00 85,215.00 514,048.75 2012 821,710.00 720,322.50 101,387.50 615,436.25 2013 824,535.00 703,550.00 120,985.00 736,421.25 2014 819,218.75 685,347.50 133,871.25 870,292.50 2015 815,750.00 665,685.00 150,065.00 1,020,357.50 2016 813,932.50 644,532.50 169,400.00 1,189,757.50 2017 398,571.25 350,540.00 48,031.25 1,237,788.75 Totals 14,708,307.50 13,470,518.75 1,237,788.75 Present Value of Savings 648,425.89 at 5.75% as 1-1 i WORKSHOP ITEM - B Agenda Date Requested: 1/26/98 Requested By: Guy R. Rankin X Report Resolution Exhibits: 1. Memo from Doug Kneupper 2. Map of Recommended Service Area 3. Matrix of other cities and if they have impact fees Department: Planning Summary & Recommendation Ordinance The City of La Porte is experiencing some quality growth and development. Our growth is placing some demands on our infrastructure development. We are offering policy options for Council to consider about how we fairly accommodate these new opportunities for the City. Specifically, we need direction about cost sharing for undeveloped areas without adequate utilities and what is the Council's position on `fair -share" development cost. The enclosed memorandum is a specific example of a project that is presenting this development demand. The enclosed memorandum describes a 10-acre development and those "fair -share" cost associated with the development. The developer agreement was prepared by estimating the cost of the utilities and dividing the cost by a projected use. Staff has developed the agreement for this particular ten -acre tract, however the same formula could be used for the entire 300- acre development. The specific service area we are working to develop an equitable `fair -share" plan for Councils consideration is the southeast quadrant of La Porte. The area represents approximately 300+ acres and at least four of the property owners have agreed, in principle to develop a master plan community. The property owners have submitted a sketch plan for staff review. The master planned community has the potential for approximately 700 new home sites, 200 town homes, 176 apartments, 65 patio homes, and approximately 25 acres of commercial development. This new development cannot happen without a sewer system to the undeveloped property at a cost of approximately 1.2 million -dollars. If Council directs staff to move forward on the trunk sewer project, we have three options that Council may wish to consider. Each option involves some type of fair -share'° plan where the City would be reimbursed for the cost of the Sewer line. Staff has identified three possible options: (1) Front Foot Fees and a development fee based on a percentage of the new utilities, (2) Impact fees in accordance with Chapter 395 of the Texas Local Govt. Code, (3) Separate development agreements with each property owner and a rezoning of 100 acres. Please find enclosed a copy of a memorandum dated 1/21/98 and a copy of the recommended improvements to this proposed development area. Action Required by Council: Policy Direction Availability of Funds: General Fund Capital Improvement Account Number: Funds Available Yes • • Memo To: Robert T. Herrera, City Manager From: Doug Kneupper, City Engineer 1��✓ CC: John Joems, Assistant City Manager Guy Rankin, Planning Director Date: 01/22/98 Re: Bayou Forest Apts., Utility Extension Agreement Over the past several weeks, staff has been developing a very unique Utility E)dension Agreement. This agreement is an integral part of the approval of development plans for the Bayou Forest Apartments. The PUD process provides the City with the opportunity to negotiate Development Agreements. Currently there are no sanitary sewer facilities available to serve the proposed apartment project and it was necessary to develop an agreement to tie the proposed sewer trunk main project with the apartment project. The most significant diversion of this agreement from current practices, is the proportionate amount of money that the City would collect from the developer. Under the e)asting ordinance and assuming the City would pay for the installation of the proposed sewer trunk main, the City would collect approArnately $30,492 in sewer connection fees. Under this agreement, as currently written, the City would collect approximately $104,000 to $120,000 in sewer connection fees. This amount was formulated by staff as follows: • All information was taken from the Preliminary Design Report prepared by TCBB, December 1997. • The anticipated sewer flow from the 10-acre, 176-unit apartment project is approximately 9% of the total capacity of the sewer trunk main system. 9% of the estimated sewer trunk main construction cost is $103,956. • 9% of the estimated engineering and surveying for the sewer trunk main project is $15,593. It is my opinion that this "percentage of capacity" approach accurately estimates the proportionate share of the sewer trunk main facilities that the apartment project will utilize. A concern that still resides with staff is how do we equitably collect the same proportionate amount of money from individual developments as they occur within the area served by the proposed sewer trunk main. The proposed Bayou Forest apartment project is in a PUD zone. The zoning ordinance allows 0 Page 1 the City to negotiate Development Agreements similar to this one for development in a PUD zone. Most or all of the Weems (_state property, which the proposed sewer trunk main serves, is within a PUD zone. As individual developments occur, the City will have opportunities to negotiate Development Agreements and collect sewer connection fees that are higher than the current 'front foot fee" ordinance. However, there is property surrounding the Bayou Forest apartment project that is zoned R-1. In an R-1 zone a development need only submit the appropriate documents, preliminary plat and final plat, to receive City approval. If sewer is available the City would not collect any front foot fees. In this scenario, the City would miss the opportunity to collect sewer fees at a rate that is proportionate to the cost of the proposed sewer trunk main. Staff has asked the opinion of the City Attorney regarding options available to the City in connection with recovery of cost expended by the City for purposes of serving all property within the service area of the proposed sewer trunk main system. The City Attorney has identified the following possibilities: Assess impact fees in accordance with Chapter 395 of the Texas Local Govt. Code. This process involves adoption of an ordinance, holding public hearings, and obtaining detailed engineering and planning expertise as a basis for adoption of the fee structure. If adopted by Council, impact fees could be localized to particular areas serviced by proposed City capital improvement projects. Impact fees could be, in this case, for the sewer trunk main only or could include the sewer, water cost, drainage, streets and the like. Impact fees could be collected at any level up to the maximum amount determined under Chapter 395. It would take approximately 120 days to implement an impact fee system within the City of La Porte. Next, the City Attorney has identified the possibility of assessing all property to be serviced by the extension of the sewer trunk main. Again, this encompasses an ordinance and involves detailed procedures, including posting of notice and opportunity for a public hearing. In essence, this is similar to our current procedure, involving front foot fees, but would also involve an adjustment of the front foot fees for assessments that would charge to the particular properties benefited by the sewer trunk main system. • Next, the City could initiate the rezoning of all properties to be benefited by the construction of the sewer trunk main system to PUD, which would enable the City to negotiate development agreements with all developers of property within the affected area. Due to the lengthy zoning and development history involving these tracts, this would not be an option recommended by Staff. A final option identified by the City Attorney might be to authorize Staff to enter into negotiations with all property owners in the service area of the proposed sewer trunk main. The purpose of the negotiations would be to establish a master agreement, involving reimbursement to the City in an equitable fashion for the cost of the proposed sewer trunk main. A master ordinance would not be required. Rather, only ordinances authorizing the entry into the development agreement by City Council would be required. A true benefit of this approach would be that the property owners would voluntarily agree to reimburse the City for at least a portion of the cost of the proposed sewer trunk main installation. Owners of property affected by the agreement could voluntarily authorize assessments against their property by the City. This negotiated approach would also insulate the City from any further proceedings, since the agreement would be consensual and negotiated. Staff feels the attainment of such agreement is possible, and would look to Council for direction in terms of (the amount of cost to recover, the way the agreem nt nudght be structured, whether JYs just for sewer, sewer water, road, etc] 0 Page 2 0 4w am ! 1 11 I. ! : . : 'Ir W.L L - _j Ll ----- ------- -m BLS. I -A w: I ------- - a• riL TA- 15 a -15c- h 1 'TF gi Q. —4— ww— ON rx!s- --s 2 LIN LJ S in -its 'o BAY FORM TACT 12 % LCA. PARK BAY FORESI GOLF COURSE GOLF COURSE i WAD 10 So `7 PROP 14- FM TrACT 18 (PHASE 1) lr*a P• PROP 24' SAN SEW L& 12'-) (PHASE 1) PROP 24* SAN--S--E7W. EET 7 PROP 24' SAN SEW 0 (PHASE 1) (PHASE 1) TOM 3 :TMRACCICO? 0,'; SAX I Elh, PROP .1 ABANDON EXIST LS 1 11 M=5" EWI . I; - 'PHASE 10t & 10' SAN SEW fil-4 PROP 24* SAN S PROP JUNC STRUCTURE,.✓ (PHASE 1) J, (PHASE 1) i Ilr S.L-� (PHASE 1) 'm TRACT I i TPJCT 3 ILS. 6 PROP JUNC STRUCTURE TRCI 1A PROP i PHASE-t)-�. UNC STRUCTURE In= 2 '*—PROP 10- FW. (PHASE il) SAN (PHASE (SERACE AREA 2A. 2E) Two Ic (PHASE 11) E AR*ZW*k 2A. 2B) II;: —PR.:)r io- SAN SEA, (PR*;-- u) S.H. 145 T6 PROP 2;:`i�z TPOCT 7 '64 (PHASE 1) PRC M (PHASE I) PROP 15- SAN SEW (PHASE 1) P ]PROP LIFT STATION PHASE I CAPACITY SIA58 M GC];D PHASE I! 2ML--77-= PROP PHASE I LIFT STATION 12A iF L • TR= 81 IPHASE I CAPACITY 0.36 MGD j!;HASE, 11 CA-PA'-FTY 1.4 MG,1 itY I LEGEND • EXIST LIFT STATION PROP SANITARY FORCE MAIN (PHASE I IMPROVEMENT) EXIST SANITARY SEWER/MANHOLE PROP urr STATION (PHASE I IMPROVEMENT) EXIST SANITARY FORCE MAIN PROP SANITARY SEWER/MANHOLE (PHASE 11 IMPROVEMENT,) ------- EXIST WATERLINE PROP SANITARY FORCE MAIN (PHASE 11 IMPROVEMENT) ---C>--- PROP SANITARY SEWER/MANHOLE (PHASE I IMPROVEMENT) Al ANITARY SEWER TRUNK MAIN AND LIFT STATION FACILITIE RECOMMENDED IMPROVEMENTS TO SERVE SERVICE AREAS 1, 2A, AND 2B MurnrCoHL-013iaden Im E.at- ft— F' Iftl -- No -- r.xmW. 2 1 AS N. 13-14501-0071 ME-DECEMBER 1997 • Exhibit 3 Survey of Cities that Collect Impact Fees City Contact Phone Collect Impact Fees Baytown Marla Tiktin 281-420-6546 Yes Deer Park Pat Trojanoski 281-479-2394 No Pasadena Tim Tietjens 713-477-1511 Yes Seabrook Lewis Herrera 281-474-3201 Yes League City Clark Patterson 281-338-4839 Yes Friendswood Ruth Henry 281-996-3292 Yes Pearland C.R. Long 281-485-2411 Yes 0 WORKSHOP ITEM - C • REOU10 FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Requested By: Report Exhibits: 1.) 2.) 3.) Department: Administration X Ordinance excerpt: City Council minutes 6/10/91 6/20/91 letter of intent to DANA Transport 6/05/91 memo from John Joems to Robert T. Herrera 4.) Industrial District Agreement 5.) Water and Sewer Service Agreement 6.) Utility Extension Agreement SUMMARY & RECOMMENDATION On June 10, 1991, Council authorized the City Manager to present DANA Transport a letter of intent to supply water and sewer and to formulate a modified Industrial District Agreement. The City Manager delivered the letter of intent on June 20, 1991 and initiated negotiations consistent with guidelines previously presented to City Council. (See memo dated 6/05/91). The City developed draft agreements for DANA's consideration. However, DANA did not comment or act on the agreements. Meanwhile, to stay ahead of SH225 construction, City Council authorized the installation of casings and carrier pipe across SH225 at several locations. The constriction costs of the casings installed at Sens Road were approximately $162,564. This, plus the relocation of utilities to accommodate the overpass at Sens Road, significantly changed the availability of utilities to DANA's site. DANA still wishes to secure water and sewer service. They have retained Manning Engineering to coordinate with the City and design the necessary improvements. Staff has reviewed the documents prepared earlier and made changes to better fit the form of agreement we now use for Industry outside the City limits. We have also prepared a Utility Extension Agreement that provides for a contribution to offset the costs of installing the casings across SH225. There are three (3) documents for Council's consideration. Approval and execution of all three is necessary to move forward according to the guidelines established in 199L 1.) Industrial District Agreement (with Limited Utility Service) 2.) Water and Sewer Service Agreement 3.) Utility Extension Agreement I.) Industrial District Agreement (with limited utility service) This draft was prepared by taking the City's standard IDA and modifying it to fit the concepts approved by Council in June 1991. This draft has been shaded to highlight the differences between this document and the standard IDA. The key differences are: ♦ DANA agrees to abide by ordinances that deal with all aspects of being a utility customer of the City ♦ DANA agrees to submit site plans for future expansions and improvements for City review for compliance with Comprehensive Plan. (One specific concern is the F101 Watershed Plan) ♦ The term of the IDA is consistent with all other IDA's in the Battleground Industrial District. The agreement expires 02/3 1/00. ♦ DANA agrees to pay in -lieu taxes as if they were fully annexed by the City. ♦ NOTE: Sections relating to construction in progress and the standard payments in -lieu have been removed from this draft. 2.) Water and Sewer Service Agreement This draft was prepared by taking the standard form of agreement for water service to industry (approved by Council on May 8, 1995) and modifying it to fit the concepts approved by Council in June 1991. As before, this document is shaded to highlight the differences between this agreement and current policy: The key features and/or differences are: ♦ The limits of water and sewer service are based on the requests made by DANA in 1991, and reviewed by Council and are not based on our current policy of 50 gal per employee per day adopted in May 1995. ♦ DANA agrees to pay City $114,355.00 for participation in City's construction costs for extending casings and carrier pipe across SH225 (this is the estimate of construction costs that DANA would have incurred to serve their site.) ♦ The expenses incurred by DANA under terms of the Utility Extension Agreement to connect utility mains to the SH225 crossing will be credited against the $114,355.00 contribution.(est. $29,095) ♦ DANA agrees to construct enough sanitary sewer storage on -site to accommodate no less that four times the average daily wastewater demands. ♦ DANA agrees that during periods when the City's collection system is surcharged, the City may require them to cease use of the sanitary sewer service for periods up to thirty-six (36) hours. ♦ City shall have the right to interrupt or temporarily suspend service, in the event of an emergency in order to serve the citizens of La Porte. ♦ DANA agrees to abide by all rules, regulations, policies and ordinances relating to utility customers of the City. ♦ The term of the agreement is for five (5) years and any agreed renewal and extensions as long as there is a valid Industrial District Agreement in place. 3., Utility Extension Agreement This agreement was developed by taking the standard Utility Extension Agreement and modifying it to fit this particular situation. Key features of this agreement are highlighted for your convenience. In summary they are: ♦ DANA agrees to construct and install • Approximately 400 foot of 8" waterline and appurtenances (connects the SH225 waterline crossing to the City's water system) • Approximately 800 foot of '15" gravity sewer line and appurtenances (connects the SH225 sewer line crossing (force main) to the City's sanitary sewer system) • NOTE: the cost of the above construction (estimated $29,095.00) will be credited against the $114,355 estimated cost for DANA if they had constructed utilities to serve their facility. • Any other extensions, repairs or maintenance required to make the 8" waterline crossing of SH225 fully operational. • Lift stations and related facilities required to transport wastewater into the City's (gravity) collection system. This will be a privately owned and maintained lift stations. ♦ This agreement also provides that; City shall approve plans and specifications City shall approve the engineers and contractor 0 • City shall pride daily inspection and approve all payments to contractor • DANA to be responsible for securing necessary right-of-way, easements, licenses and/or permits at no cost to the City • A one year warranty from defects in materials and workmanship will be included • DANA is not due any reimbursements from City or adjacent property owners for any future connections to these utilities. In summary, staff has constructed these agreements to fit the concepts outlined in 1991 and also used the terms of our current standard Water Service Agreement with Industry, except where they conflict with this specific utility request approved by Council in 1991. Action Required by Council: Approve the concepts and approach presented, and to direct the City Manager to offer these draft agreements to DANA Transport. Availability of Funds: General Fund_ Water/Wastewater _ Capital Improvement_ General Revenue Sharing _ Other Account Number: .Funds Available: YES NO A ro City Council A ends ob T. Herrera Date City- Manager Minutes, Regular Meeting, La Porte City Council June 10, 1991, Page 3 Motion was made by Councilperson Skelton to adopt Ordinances 1659-D and 1659-E as read by the City Attorney. Second by Councilperson Gay. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None At this point, Council retired into executive session at 7:05 P.M. under Article 6252-17, Section 2(E) to discuss Dana Transport Contractual Matter with the City Attorney. Council returned to the Council table at 7:35 P.M. and addressed item 15. 15. Council received a report from the City Manager on water and sewer service to properties in Battleground Industrial District, and considered authorizing the City Manager to give letter of intent to Dana Transport for water and sewer service and Industrial District contract. After the report was given, motion was made by Councilperson Gav to approve authorizing the Citv Manager to present Dana Transport a letter of intent to supply water and sewer services and to formulate an industrial district contract. Second by Councilperson McLaughlin. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 16. Council considered approving an interlocal agreement with the City of Baytown and the City of Seabrook for purchase of malathion. Motion was made by Councilperson Cooper to approve entering into an interlocal agreement with Baytown and Seabrook for the Purchase of malathion. Second by Councilperson Sutherland. The motion carried, 9 ayes and 0 nays. Ayes: Councilpersons Sutherland, Cooper, Thrower, McLaughlin, Porter, Gay, Skelton, Clarke and Mayor Malone Nays: None 0-, 0_. =00/ C1TY OF LA PORTE P..01.c 17131 A71.3020 • P. O. aOn 1 1 13 • L. POoi[. TLe.3 77772.1.1 1 June 20, 1991 Mr. Charles L. Ring, Sr. Director of Operations Dana Tank Container,. Inc. P.O. Box 597 La Porte, TX 77572-0597 Dear Mr. Ring: The City Council of the City of La Porte, at a regular meeting held on June 10, 1991, authorized negotiation of an industrial district agreement and a water and sewer service agreement between the City of La Porte and Dana Tank Container, Inc., in connection with Dana's planned purchase of property north of State Highway 225, in the City of'La Porte's Battleground Industrial District. City Council authorization was for negotiation of such contracts consistent with an interoffice memorandum from John Joerns, Assistant City Manager, to the undersigned, as City Manager, dated June 5, 1991, a copy of which is attached to this letter. Our City Attorney, Knox W. Askins, is preparing proposed drafts of these agreements, and we will be in touch with you further when these drafts are ready for review and discussion. The City of La Porte looks forward to working with Dana Tank Container, Inc., in this mutual endeavor. Yours very truly, CITY OF LA PORTE By: (3 jz� -. l . Robert T. Herrera City Manager RTH:sw Enclosure h CITY OF LA PORTE INTEROFFICE MEMORANDUM TO: Robert T. Her , City Manager FROM: John Joerns, stant City Manager DATE: June 5, 1991 st/ SUBJECT: Update: DANA Transport Reque • Water and Sewer Service Outside City Limits At the April 8,'1991 meeting, Council heard a request from DANA Transport (and two other firms not represented in person) for provision of water and sewer service outside the City limits. After much discussion, Council asked the City Manager's office to visit with DANA and discuss annexation as a means and/or requirement to receiving these City services. The City Manager met with representatives of DANA and discussed iding water and sewer service. DANA annexation as a means of prov Transport did not take exception to the prospect of full annexation. However, from the City's viewpoint full annexation has some risks that should be considered. * The City would have to prepare a service plan detailing the provision of all City services both immediate and long range. Eventually the City would be required to provide full water and sewer service to the .area. Although this would not be of great concern now, it could impact the City at a later date. Recall that this area was not included in the City's or the LPAWA's planning efforts. rul-1 the provision lcaflacitr would y water available to current subtract from properties in the City. * The water well that is currently in use would conflict with City ordinances. If future repairs were necessary or if the subsidence district intervened, the City would be expected %_ provide full service to DANA because they would be fully annexed. Again, the availability of additional surface water from Houston within the next eight to ten years is not a firm prospect. Water and Sewer Service Outside City Limits Page 2 . On the plus side, providing water and sewer service to this area would provide additional income for the Utility Fund. It would also result in installation of utilities that would allow for future provision of full water and sewer service to the properties along SH 225. This could bone when ey to the relationshipcities are lisand to the Council deems appropriate. provide limited service now, protect the communities water and sewer resources., and efficiently plan for full annexation of the businesses at a later date. The concept that "grew" out of the meeting with DANA was cons ideration•of pursuing/creating a separate class of Industrial District Agreement for businesses outside the City. Knox Askins has researched, "water rights law" to see if the City can effectively contract water and withdraw servicr service e t the endeofterm the and conditions and (if need be) specified term or if conditions are not met. Per recent conversation with Knox, he is confident that the City has such authority. If Council approves of the concepts presented here, the administration will construct a "modified" Industrial District Agreement for Council's consideration. Additionally, DANA Transport requests Council to consider issuing a letter of intent (perhaps at the June loth meeting) that would provide them with the level of comfort necessary to purchase the property. Currently, the "modified" Industrial District Contracts would include the following basic concepts. The companies would: petition the City of La Porte for annexation recognize that City at this time cannot provide full range of water and sewer services as requested by the Company ited water and sewer service specified in agree to lim contract contract agree contract a specified term in the agree to (through the petition) future full annexation at the discretion of the City agree to City codes, policies, etc. related to water and sewer service being extended and enforced by contract Council - (traditionally to payment for services as set by (traditionally 1.5 times rate for citizens) agree to payments in lieu of taxes at 100% level - agree in concept to participate in future planning of water and. sewer demands undertaken by either the City or La Porte Area Water Authority Water and Sewer Service' outside City Limits Page 3 - agree to watershed planning principles (and other master plan components identified and adopted by the City) agree to participate in cost sharing of extending utilities across SH 2ALI etc./other The City would: execute an Industrial District contract with- companies for a specified term and payments in lieu of taxes - agree to participate in cost sharing of extending utilities across SH 225 - have final authority over size, location, materials, etc. utilized in the extension own the utilities up to a point defined as service lines - have. right of entry at all times to see if terms and -conditions are met terminate agreement if terms and conditions are not met - enforce the drought contingency plan on customers if warranted - etc./other _ NO. 93-IDA-_ { STATE OF TEXAS { { COUNTY OF HARRIS { � DRY INDUSTRIAL DISTRICT AGREEMENT VTTI s) This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and DANA TANK CONTAINER, INC., a New Jersey corporation, hereinafter called "COMPANY", W I T N E S S E T H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land"); and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City Council of said City and recorded in the official minutes of said City; 0_dl HEREAS� mec�tynd Company, waen ,ve tered into a Water . and r' Sewe e_rvide'Agre� aand a�'Utility-,Extension Agreement, both of even) ate ''herewith, `deference 'to -which is 'here made for all purposes;) and *THEREASt tie. -intention gf—Ct'y and -company twat Sho ' ere be any ..conflict between the provisions of. said Water an Sewer ServzGe greem n .;arid, said Utili`ty., .Extension Agreement, an the. terns aad p ov sa aris . p this Industrial District is Agreement, th terms and pr6v :'sa tins§ of the �ate� and Sewer Se�yice Agreement an ` the. iJtxlity Utah' Agreement, as the 'case ma be, shall. control, to the `extent ,bf :t-u h6nf-lice one yc NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City referred to above, City and Company hereby agree with each other as follows: 0 City covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, City does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, �t ep :as, rovided�iri the GVat6f , anC- Sewer. aervic� gre en and t e tila` � Extension Agreement of even date h.erewitb etween Cit�and 'CompaYiy, reference to which . is here mace for all. urpose and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building or electrical codes, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon, e cep as prQvi e er-rr p ,provided 1n r ar ;�,�;'�`ixba�� � .. an ,exce as Jtility Exte�isibn Agreement .and Water and Sewer Service Agreemen bf even date herewith provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible Pa 0 0 personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by City, at City's expense, by an independent appraiser of City's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. A. On or before April 15, 1998, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2000, Company shall provide City with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III (sometimes collectively called the "Property"). A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 1998, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2000, Company 3 0 shall pay to City an amount "in lieu of taxes" on Company's Property as of January 1st of the current calendar year ("Value Year") . D. Company agrees to render to City and pay full City ad valorem taxes in the form of "in lieu of taxes" payments, on its land and improvements and tangible personal property, as fully as if said land, improvements, and tangible personal property were annexed to City. E. Company agrees to pay all "in lieu of taxes" payments hereunder, to City on or before December 31st of each year during the term hereof. This Agreement shall be subject to all provisions of law relating to determination of value of land, improvements, and tangible personal property, for tax purposes (e.g., rendition, assessments, Harris County Appraisal District review and appeal procedures, court appeals, etc.) for purposes of fixing and determining the amount of ad valorem tax payments, and the amount of "in lieu of tax" payments hereunder, except as otherwise provided in Article VI hereof. IV. This Agreement shall extend for a period beginning on the 1st day of January, 1996, and continuing thereafter until December 31, 2000, unless extended for an additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2000, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, Section 42.044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. 0 • • VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree with any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" payments which would be due hereunder on the basis of Company's valuations rendered and/or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever 5 is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the U.S. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" payment and total payment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including expert opinion, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbitration Act (Articles 224-238, Vernon's Annotated Revised Civil Statutes of Texas). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on Company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon City and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. Without such agreement, neither party hereto would enter into this Agreement. In the event any one or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. Upon the commencement of the previously existing industrial said Land shall terminate. ENTERED INTO effective the Name: Title: Address: X. term of this Agreement, all other district agreements with respect to M day of DANA TANK CONTAINER, INC. 7 • • ATTEST: Martha A. Gillett APPROVED: Knox W. Askins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 Phone: (281) 471-1886 Fax: (281) 471-2047 By: By: CITY OF LA PORTE Norman L. Malone Mayor Robert T. Herrera City Manager CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 "EXHIBIT A" TO INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND (Metes and Bounds Description of Land) • "EXHIBIT B" TO INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE :Nk ME (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.) 9 0 • "EXHIBIT C" TO INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND Company agrees to abide by all City's rules, regulations, policies and ordinances regarding utility service unless the provisions of the Water and Sewer Service Agreement prevail or impose specific or more strict standards. For any future expansions or improvements to the site described in Exhibit "A" and "B", Company shall present a site plan to the City of La Porte for review. Company further agrees to abide by the concepts established in the City's adopted F101 Master Watershed Plan by provided onsite detention of stormwater runoff for any future improvements. Company further agrees to participate in future planning of water and sewer demands undertaken by the City or by the La Porte Area Water Authority. 10 O1/22/98 DRAFT 1 of 8 STATE OF TEXAS § COUNTY OF HARRIS § WATER AND SANITARY SEWER SERVICE AGREEMENT (With Utility Extension Agreement) This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and DANA TANK CONTAINER. INC , a New Jersey corporation, hereinafter called "COMPANY". I. COMPANY is the owner of certain real property which is situated in CITY'S Battleground Industrial District and not within the corporate limits of the CITY. C Y and'COMPANY hav _tered intcian' Wus: dW°District'A n t and'A Utility Extension Ag cement, both of even erewith reference to which is here made for all purposes; and Whereas, it is the intention of CITY and COMPANY that ould there be any_conflict between the_pwvisions of said Industrial _istrict Agreement, and said CJtilityExtension Agreement, and thetermsand provisions of this aterr'and`Sewer'Senvice Agreement, the terms and_provisions of the Water and Sewer Servi e I t and the' Utility Extension Agreement, as the case maybe, shall control, to the extent o ��flict only H. COMPANY is desirous of purchasing potable water and sanitary_sewer service from CITY for usual human domestic consumption and uses, and unitary sewer service for tank washing an leaning of tankti'ucks by COMPANY Previous planning considerations for the long-range potable water supply and sanitary sewer service of CITY did not include the needs of property located outside the city limits of CITY. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited water and sanitary sewer service as requested. CITY agrees, however, to provide limited potable water and sanitary sewer servijoe, to COMPANY. For and in consideration of furnishing domestic tablewater -di___ sanitary sewer service by CITY, the parties hereto agree as follows, to -wit: • • 01/22/98 2 of 8 COMPANY has made the following representations to CITY as to its request fior water an tat"y`j�e 'seam as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. �omestic' water'autlda � 'sealer ' = '�' Q04 Ba' P�___�X:.il stt g;7 oiYs 1 r day d IV. CITY has determined that adequate facilities are available to CITY to furnish )W-W potable water and Sarli_t1y sews to COMPANY based on the following terms and conditions, to - wit: PAYMENT (4) Payment to CI'TY`n the amount of $114,355.00 for �articipati:on in construction costs foieztendingCasings and carrieipe across State Highway 225�j ,steuctioi costs : : __lirlesm extended under the utility Pxt�nsion_ Agreem-T b b-redited against this $114.355.00. An initial w po mment of $25,000.00 _ sdue and payable to the Curt execution of this" agreement and -to- construction- of utilities extended under the Utili tension Agreement. Ttie balance shall bed in full upon completion and acceptance o> es extended under the Utility Extension Agreement and before any water and sew eivicTiss provided to COMPANY - -- COMPANY Shall file an application for water service with CTT'Y'S Utility Billin ham'vision and pay''appropri�.te deposiC� - - • • 01/22/98 3of8 POTABLE WATER SERVICE (A) The average daily demand for domestic usage of water is established at 1,000 gallons per day (gpd). (B) The average monthly demand for domestic usage of water, thirty thousand five hundred (30,500) gallons per month (gpm) is established by multiplying the average daily demand by a factor of 30.5, which shall be used to facilitate service billings. (C) The cost of domestic water up to the average monthly demand of thirty thousand five hundred (30,500) gallons per month shall be one hundred fifty percent (150%) of the CITY'S current rate as established from time to time for commercial customers inside its corporate limits. (D) The cost of domestic water amounts used in excess of the established average monthly demand shall be two hundred percent (200%) of the CITY'S current rate as established from time to time for commercial customers inside its corporate limits. (E) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of thirty thousand five hundred (30,500) gallons of potable water service for domestic usage. Repeated consumption greater than the established average monthly demand may result in termination of service. (F) CITY shall have the right to interrupt or temporarily suspend water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of citizens of La Porte. (G) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (I) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross connections. I 01/22/98 4 of 8 (17 COMPANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. (J) The potable water supply system will be segregated from any existing and future COMPANY fire protection system. (K) There shall be no resale of the water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (L) The total cost for the engineering design and construction of any potable water main, service line, back flow preventer, meter or other required appurtenances will be the responsibility of COMPANY. (M) All expenses of the installation of the meter; service lines from the main to the meter; and from the meter to COMPANY'S facilities, shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own and maintain the meter. WASTEWATER_ SERVIC$ (A— 0- 'gall — ----- ons_per da COMPANY shall be limited to 28,750 gallons day (gpd) for_purpo ses of dankwashingd mLJ _Aq—�01gp_ e� average monthly demand for wastewater, seven thousand threo undred seven five month is established by multiplying th� 3 av e wastewater -factor d 3-0—.5,whi—ch- -shall e used kcilitatr' service billingsj The cost'of wastewater up to the average monthly demand of 907,375 gallons pe --—-- ------ ---- nonhshaI1be onehundedfifty percent (150%) of the CITY'S current rate established from time to'time for commercial customers inside its corporate city' 0 01/22/98 5 of 8 Thy sanitary sewer costs for amounts used in excess of the established 907,375 gallons^pet month 1demand shall.be two it `percent (20l?%) of the CITY'. Omie'nt rate: as" fished from time to, hmQ`far cammerc�at customers inside i �'�ra���ixnits. .N ithing='cantaanei11h this': agreement shall': obligalethe yCrry to furnish more iha� ----------------- �' t ►ge' t d to d of 7; 7!5 _.._ 'r ortth. Repeated ]Lmpq tharY''' Ali averi map►dil_ _ -� result in texmmzrtio: _ nitar . ` serve �seriti ' bein extmded, 'to COMPANY will be to proyide�f - ��---_,--------------------------_.-.--- -,------------------------.------- .---- _-- -- -_----I domestic usage and tank cleaning_operaoons to the DANA Corporation. -an- shall be %estricted.to 29,75U gallons day G — COMPANY agrpg4 tto install a meter to measure the sanitary wasterwater flow from COMPANY'S facilifses, CITY shall approve the location and type of meter. iw- C_OMP—_..__�.-._ __ ...-.._.- ._-._..--_----------- --- -- -- -- -- - - -- -- -- --- - - - -- agrees to construct enough sanitary sewer storage on -site to '�mmodate no less than four times the average daily demand of wastewater g rated' 66in its oprations _for aperiod pf thirty-six hours.! -- COMPANY °agrees that during, ng, periods when the. CITY'S collection system surcharged, theCl'TY may_requjTe them to cease use of the sanitary sewer sewn e or periods not. to exceed thirty-six (30) hours �u _ City_ shall have the right to interrupt or tgmporanly suspend said sewer service to ,MRT S if an _emergency_ arises and there is not adequate sewer treatment or, coltec#gq sy_stem'ca�acity_to meet the needs of the citizens of La. Porte.. COMPANY agrees that it shall be bound by CITY S Industrial Waste Ordinance (Ordinance No. 1663) and any subsequent amendments or revisions: �L)_, COMPANY agnaes that it`shall be bound by all other .applicable ordinances of TTY and regulations of any state'or federal agency having. jurisdiction; relative to refurnishing of sanitary sewer to customers within the corporate lirruts-of CITY -- ----- - ---- ------ ---- - ------ , M) There shall be no resale of the sewer capacity provided by CITY, nor anv extension of service lines by COMPANY, to serve other parties • • 01/22/98 6 of 8 �N A11 uses oftt a installation of sanitary_sewer service amines t - COMPANY >itxe;.shalt" iely a the eac-of CQMPANY. COMPANY stiatl o Main `all_serWiiGe�iines and plumbing facilities beyond the praperky 1ine� V. All plumbing installed by COMPANY connected to the public utility main from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and code enforcement personnel shall have the right to prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY shall have the right to inspect any and all work related to the furnishing of potable water and sanitary sewer service to COMPANY. VI. Y_sfia]l have finax authr�rity over stze_ location, materials I other engineenng matter cernir�g the extension, Qf water end sewer mains to COMPANY'S property. These matters ar�'g he subject +df a`'Utilit F, tension` Agreement between the_pardes, of even date herewith In the event a State or Harris County license, permit, or permission to install the water main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water and sanitary facilities, and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notify COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. VIII CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (10) days may result in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the • 01 /22/98 7of8 integrity of the CITY'S water supply is threatened or the integrity of the CITY'S wastewater collection or treatment facilities are threatened. a Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare for transition to another water rand sewer Service. If the transition is not complete within said six-month period, or if repeated violations occur during this period, CITY shall have the right to terminate water service at its sole discretion. a .team of this Agzment,shail be fc�riearsplus any_agreed renewals and extensio erec�i t�owever,_this Agreement shallutomatically_eVi�re at such time as there is no effective dustrial"District'Agreerilent between the parties or if CITY exercises its ri hit of termination ENTERED INTO effective the day of , 1997. By: Company Name: Title: Address: CITY OF LA PORTE ATTEST: By: Martha A. Gillett City Secretary APPROVED: Un Knox W. Askins City Attorney City Attorney PO Box 1218 LaPorte, TX 77572-1218 Phone: (281) 471-1886 Fax: (281) 471-2047 CITY OF LA PORTE Norman L. Malone Mayor Robert T. Herrera City Manager City of La Porte PO Box 1115 LaPorte, TX 77572-1115 Phone: (281) 471-5020 Fax: (281) 471-7168 01/22/98 8 of 8 m mw .*"r. �� � _ t - 1 .ems., ,•� � ,. / r BAY FOREST - MASTER PLAN LA PORTE, TEXAS LAND USE SUMMARY Single family 125.94 acres 399 units Patio/garden 20.00 acres 120 units Senior homes 5.85 acres 60 units Townhomes 6.81 acres 102 units Total 681 units Apartments 10.000 acres i General commercial •. 23.750 • acres Commercial office 8.975 acres Golf course 22.940 acres , Parks, lakes, green 27.466 acres Total 246,731 acres 40 Impact Fees — Comparison of Neighboring Cities :Single Familys �Unit:.Wa'ter.- Single Fami1: Unitµ ;-SewerL. `.:,.. '`�Apa.'rtment Uhit. iW, Q' : Apartment Unit- Sewer Bayou Forest A ts. P Seabrook $948.00 $1.9054.00 $805.00 $992.00 $3161412.00 Baytown $100.00* $200.00* $100.00** $200.00** $52,800.00 League City $734.00 $1,100.00 $522.00 $728.00 $220,000.00 LaPorte $276.00*** $366.00*** $181.71** $174.24** $625290.00 Pearland $1,997.00 $1,397.00 $244,632.00 Friendswood $1,008.50 $577.50 $554.68 $317.63 $152,654.00 * Assume 3.5 lots per acre * * Assume 17.5 units per acre * * * Assume 6,000 sq. ft. lot • MEETING HANDOUTS EXIST. 10" SAN. SEWER F.M. (BY CITY) DANA 902 SENS RD. 1 1 1 PROP. 8" WATER LINE 1 1 BY .DANA) I '� SH EXIST. 8" SAN. SEWER rsoo ■ EXIST. 8" WATER LINE tJ3 ■ (BY CITY) w s c/.) s ■ o .p PROP. 15 " SAN. SEWER (B Y DANA) �s 1 1 1 1 1 NORTH To ST,