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Home My WebLink About1998-04-27 Regular Meeting of City Council . .. 'e . e ORIGINAL MINUTES OF THE REGULAR MEETING OF LA PORTE CITY COUNCIL APRIL 27, 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, Deotis Gay and Jack Maxwell. Members of Council Absent: Alton Porter and Jerry Clarke. Members of City Executive Staff and City Employees Present: City Manager Robert T, Herrera, Assistant City Manager John Joerns, Assistant City Manager Jeff Li:tchfield, City Attorney Knox Askins, Police Chief Bobby Powell, Public Works Director, Steve Gillett, City Secretary Martha Gillett, Planning Director Guy R:mkin, City Engineer Doug Kneupper, Assistant Public Works Director Buddy Jacobs, City Manager's Secretary Carol Buttler and Purchasing Agent Susan Kelley. Others Present: Peter Griffiths, Spero Pomonis, Reverend Sonny Boyer, John McCorquodale, Charlie Young, Mike Clawson and a number of La Porte Citizens. 2. INVOCA TION - REVEREND SONNY BOYER - CHURCH OF NEW BEGINNINGS Reverend Sonny Boyer delivered the invocation. 3. CONSIDER APPROVING MINUTES OF REGULAR MEETING AND WORKSHOP SESSION ON APRIL 13, 1998. Motion was made by Councilperson Sutherland to approve the minutes of April 13. 1998 meeting as presented. Second by Councilperson Engelken. The motion carried, 7 ayes and 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Gay, Maxwelll and Mayor Norman L. Malone, Nays: None e e City Council Minutes - April 27. 1998 Page 2 4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL Spero Pomonis, 218 Bay Colony Drive, requested City Council grant him more than five (5) minutes. City Council granted him permission to speak for more than five (5) minutes. Mr. Pomonis addressed City Council regarding the Junk Vehicle Ordinance. Mr. Pomonis wants to know why the City has an Ordinance that is not enforceable. In addition, Mr. Pomonis suggested City Council seek a legal opinion on the Ordinance. 5. CONSIDER APPRO V AL OR OrnER ACTION REGARDING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, ADOPfING THE OFFICIAL NOTICE OF SALE AND OFFICIAL STATEMENT FOR THE 1998 SERIES GENERAL OBLIGATION BONDS AND THE 1998 SERIES WATERWORKS AND SEWER SYSTEM REVENUE BONDS (Res. 98-04) J. Litchfield Assistant City Manager/Finance Director Jeff Litchfield presented summary and recommendation, Mr. Litchfield advised Council the City of La Porte will be selling $3 million in General Obligation Bonds and $1.25 million in Revenue Bonds in the next couple of months. This money will be used to fund projects that have previously been discussed with Council and will be re-discussed at a future meeting. As the first step in the process, the City Council needs to give approval over a document that is known as the Official Notice of Sale and Official Statement. The Official Statement contains information about the City and the area in general. and is used by potential investors. City AUorney Knox Askins read: A RESOLUTION OF THE CITY CONCIL OF THE CITY OF LA PORTE, TEXAS, ADOPTING THE OFFICIAL NOTICE OF SALE AND OFFICIAL STATEMENT FOR THE 1998 SERIES GENERAL OBLIGATION BONDS AND THE 1998 SERIES WATERWORKS AND SEWER SYSTEM REVENUE BONDS. Motion was made by Council person McLaughlin to approve this Resolution as presented. Second by Councilperson Maxwell. The motion carried, 7 ayes, 0 nays. e e City Council Mt:eting Minutes - April 27, 1998 Page 3 Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Gay, Maxwell and Mayor Malone. Nays: None 6. CONSIDER APPRO V AL OR OTHER ACTION REGARDING A RESOLUTION AUTHORIZING THE ACQUISITION OF A TRACT OF LANU FOR PUBLIC PARKS PURPOSES IN THE CITY OF LA PORTE (Res. 98-05) J. Joerns Mayor Malone announced item six (6) has been requested to be taken to Executive Session. 7. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A GENERAL WARRANTY DEED TO EARNEST H. GRABBE (Ord. 98- 2232)-.S. Gillett Public Works Director Steve Gillett presented summary and recommendation. Mr. G:illett advised Council that on November 24, 1997, they approved a resolution authorizing the City Manager to execute an Airport Project Participation Agreement with the Texas Department of Transportation, Aviation Division, to acquire land at the northwest corner of the La Porte Municipal Airport for a runway protection zone. The Agreement authorizes the Department to act as the City's agent in acquiring this property. As part of the Project, the City is also acquiring right-of-way for the extension of Fanington Blvd. With the new alignment, a portion of the Lomax School Road Right-of-way south of H Street will not be required. Parcel 2 will be deeded to the Owner of the adjacent property, with an aviation easement, in exchange for property being acquired for the Airport. The exchange is valued at $.35 per square foot, as established by formal appraisal. Mr. Gi.llett recommended Council approve Ordinance 98-2232 authorizing the City Manager to execute a General Warranty Deed to Earnest H. Grabbe. City Attorney Knox Askins read: ORDINANCE 98-2232 - AN ORDINANCE APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A GENERAL WARRANTY DEED TO ERNEST H. GRABBE, CONVEYING THE PROPERTY THEREIN DESCRIBED; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDINGS COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. e e City Council Meeting Minutes - April 27, 1998 Page 4 Motion was made by Councilperson Gay to approve this Ordinance as read by the Cilty Attorney. Second by Councilperson Ebow. The motion carried, 7 ayes, 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Gay, Maxwell and Mayor Malone. Nays: None 8. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE TO CWSE, VACATE AND ABANDON THE ALLEYS IN BWCKS 276, 295, & 304, TOWN OF LA PORTE; THE EAST "H" STREET AND EAST "I" STREET RIGHTS-OF-WAY BETWEEN SAN JACINTO AND ARIZONA STREETS; AND THE ARIZONA RIGHT-OF- WAY BETWEEN "G" AND PARK STREETS AND RETAINING V ARIOUS UTILITY EASEMENTS(Res. 98-2233) - G. Rankin City Engineer Doug Kneupper presented summary and recommendation. Mr. Kneupper informed Council that City has been petitioned by La Porte Independent School District to close, vacate, and abandon the alleys in Blocks 276, 295 &. 304, Town of La Porte; the East "H" Street and East "I" Street Rightso.of-Way between San Jacinto and Arizona Streets; and the Arizona (5th) Street Right-of-Way between East "G" and Park Streets. The purpose of this request is to facilitate the District's current plan for construction of a new administration facility in Block 304, as well as its future plans for expansion. The Planning and Public Works Departments have reviewed this request and have dl~termined the need to retain various utility easements to facilitate existing City and Harris County Flood Control facilities. Additionally, District abandonment and/or relocation of existing franchised utilities. In accordance with Article n, Section 62-35 of the Code of Ordinances, the District is exempted from the payment of fair market value to the City for the aforementioned rights-of-way. Staff r(~ommends closing, vacating, and abandoning the alleys in Blocks 276, 295, &. 304, Town of La Porte; the East "H" Street and East "I" Street Rights- of-Way between San Jacinto and Arizona Streets; and the Arizona (5th Street) Right-of-Way between East "G" and Park Streets and providing for various easements to be retained by the City and Harris County Flood Control. City Alttorney Read: ORDINANCE 98-2233 - AN ORDINANCE VACATING, ABANDONING AND CLOSING THE ALLEYS IN BLOCKS 276, 295 &. 304, TOWN OF LA PORTE; THE EAST "H" STREET RIGHT-OF-WAY BETWEEN SAN JACINTO STREET &. ARIZONA (5TH) STREET; THE e e City Council Meeting Minutes - April 27, 1998 Page 5 EAST "I" STREET RIGHT-OF-WAY BETWEEN SAN JACINTO STREET & ARlrZONA (5TH) STREET; AND THE ARIZONA (5TH) STREET RIGHT- OF-WAY BETWEEN EAST "G" STREET AND PARK STREET, TOWN OF LA PORTE, HARRIS COUNTY, TEXAS; RETAINING EASEMENTS FOR EXISTING WATER, SANITARY, AND STORM SEWER FACILITIES; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AND EFFECTIVE DATE HEREOF. Motion was made by Councilperson McLaughlin to approve this Ordinance as read by the City Attorney. Second by Councilperson Gay, The motion carried, 7 ayes:. 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Gay, Maxwell and Mayor Malone. Nays: None 9. CONSIDER APPRO V AL OR OTHER ACTION REGARDING AN ORDn~ANCE APPROVING A WATER CAPACITY PURCHASE AND SALE AGREEMENT BETWEEN GULF COAST WATER AUTHORITY, THE CITY OF GALVESTON AND THE LA PORTE AREA WATER AUTHORITY (98-2234) - R.T. Hererra/J, Litchfield Mayor Malone announced that item nine (9) will be taken to Executive Session. 10. CONSENT AGENDA - ANY ITEM MAYBE REMOVED BY A COUNCILPERSONFOR DISCUSSION A. CONSIDER APPROVAL TO AWARD BID FOR ANNUAL CONTRACT TO SUPPLY LIQUID CHLORINE TO DXI INDUSTRIES FOR AN ESTIMATED ANNUAL COST OF $26,335 - S. Gillett B. CONSIDER APPRO V AL TO AWARD BID FOR ANNUAL CONTRACT TO SUPPLY CRUSHED LIMESTONE TO SUNBELT ASPHALT AND MATERIALS FOR AN ESTIMATED ANNUAL COST OF $35,250 - S. Gillett c. CONSIDER APPROVAL TO A WARD BID FOR ANNUAL CONTRACT TO SUPPLY FLY ASH STABILIZED CALCIUM SULFA TE (GS200S) TO GULF STATES MATERIALS FOR AN ESTIMATED ANNUAL COST OF $32,975 e e City Council Meeting Minutes - April 27, 1998 .Page 6 Motion was made by Councilperson Ebow to approve this Consent Agenda as presented. Second by Councilperson Gay. The motion carried, 7 ayes, 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Gay, MaxWt~ll and Mayor Malone. Nays: None 11. ADMlNISTRATIVE REPORTS City Manager Robert T. Herrera reminded Council the SEED Banquet is April 30, 1998 at the Pasadena Convention Center. Secondly, Mr. Herrera reminded Council a Special Called Council Meeting will be held on May 5, 1998. Lastly, Mr. Herrera announced the National Day of Prayer will be recognized on May 7, 1998 at City Hall (12 Noon). 12. COlll'rCIL ACTION Councillpersons Engelken, Ebow, McLaughlin, Gay and Mayor Malone brought items to CounciJ' s' attention, . 13. 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, DELnSERA TION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, CONFERENCE WITH EMPLOYEES DELIISERA TION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION) A. SECTION 551.072 - (REAL PROPERTY) MEET WITH CITY MANAGER AND CITY ATTORNEY REGARDING LAND ACQUISITION Council retired into executive session at 6:44 p.m. under Section 551.072 (REAL PROPERTY), Meet with City Manager and City Attorney regarding land acquisition and under Section 551.071 (MEET WITH CITY ATTORNEY ON CONTRACTUAL MATTER) Meet with City Attorney regarding potential contractual matter regarding water capacity purchase. e e City Council Meeting Minutes - April 27, 1998 Page 7 Council returned to the table at 8:04 p. m., with no action taken. 14. CONSIDER A TION AND POssmLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION 6. CONSIDER APPROVAL OR OTHER ACTION REGARDING A RESOLUTION AUTHORIZING THE ACQUISITION OF A TRACT OF LAND FOR PUBLIC PARKS PURPOSES IN mE CITY OF LA PORTE (Res. 98-05) City Attorney Knox Askins read: RESOLUTION 98-05 - A RESOLUTION AUTHORIZING THE ACQUISITION OF A TRACT OF LAND OF LAND FOR PUBLIC PARK PURPOSES IN THE CITY OF LA PORTE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF, A motion was made by Councilperson Engelken to approve this Resolution as read bv the City Attorney. Second by Council person Ebow. The motion carried., 7 ayes and 0 nays. Ayes: Councilpersons Sutherland, Engelken, Ebow, McLaughlin, Gay, Maxwell and Mayor Malone. Nays: None 9. CONSIDER APPROVAL OR OTHER ACTION REGARDING AN ORDINANCE APPROVING A WATER CAPACITY PURCHASE AND SALE AGREEMENT BETWEEN GULF COAST WATER AUTHORITY, THE CITY OF GALVESTON AND THE LA PORTE AREA WATER AUTHORITY (Ord. 98-2234) R.T. Herrera/J. Litchfield City Attorney read: ORDIANCE 98-2234 - AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE LA PORTE AREA WATER AUTHORITY, GULF COAST WATER AUTHORITY, AND THE CITY OF GALVESTON FOR THE PURCHASE OF WATER CAPACITY AT THE SOUTHEAST WATER PURIFICATION PLANT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. e e City Council Meeting Minutes - April 27, 1998 Page 8 Motion was made by Council person Maxwell to apl>rove the Ordinance as read by the City Attorney. Second by Councilperson Gay. The motion carried, 7 ayes and 0 nays. Ayes: Councilperson Sutherland, Engelken, Ebow, McLaughlin, Gay, Maxwell and Mayor Malone. Nays: None 15. ADJOURNMENT There being no further business to come before Council, the Regular Meeting was duly adjourned at 8:07 p.m. Respectfully submitted, ~M1i1~ {/,/ldItt[ Martha A, Gillett City Secretary Passed and approved on this 5th day of May, 1998. )&~~k(P-- ..,. : " e ""' '-'c . .' .- " " J i. e . REQUEST FOR CITY COUNCIL AGENDA .M AGENDA DATE April 27, 1998 REQUESTED BY Jeff Litchfield. Finance Director/ACM _ REPORT; ~L RESOLUTION; _ ORDINANCE; The City of La Porte will be selling $3 million in General Obligation Bonds and $1.25 million in Revenue Bonds in the next couple of months. This money will be used to fund projects that have previously been discussed with Council and will be re-discussed at a future meeting. As the first step in the process, the City Council needs to give approval over a document that is known as the Offic,ial Notice of Sale and Official Statement. Included in the Council Member Packets is a draft c::opy of the document. The Official Statement contains information about the City and the area in general and is used by potential investors. ACTION REQUIRE:D BY COUNCIL: Adopt Resolution approving the Official Statement of the City of La Porte. FUND N/A ACCT NUM: FUNDS AVAILABLE: APPROVED FOR CITY COUNCIL AGENDA Gi~ T. \-\~ ROBERT T. HERRIERA, CITY MANAGER ~-1"l-9~ DATE . -- RESOLUTION NO. 98-~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, ADOPTING THE OFFICIAL NOTICE OF SALE AND OFFICIAL STATEMENT FOR THE 1998 SERIES GENERAL OBUGA TION BONDS AND THE 1998 SERIES WATERWORKS AND SEWER SYSTEM REVENUE BONDS. WHEREAS, the City of La Porte needs to complete various capital improvement projects; and WHEREAS, in thc~ 1985 Bonds Election, the voters of the City of La Porte approved the issuance of debt to fund said type of projects; and WHEREAS, the City of La Porte is of the opinion that the issuance of debt best provides the funding for the capital improvement projects; and WHEREAS, the City Council is of the opinion that the Official Notice of Sale and the Official Statement of the City should be adopted; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, THAT: Section 1. THAT, the Official Notice of Sale and Official Statement of the City of La Porte for the 1998 Series General Obligation Bonds and the 1998 Series Waterworks and Sewer System Revenue Bonds is hereby adopted; Section 2. That 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 offices of City of La Porte 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 resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City CCluncil further ratifies, approves and confirms such written notice and the contents and posting thereof. ~sr. ( itA tL )4.JJ.b// . a fia Gillett, City Secretary PASSED AND APPROVED this the 27th day of April, 1998. C OF LA PORTE, TEXAS . ~~~~- ~~~~i,1 ~Zc.,~ Knox Askins, City Attorney JO . ~: ',. .. '-~ , " - , tit ~:;~.;.....: . / .,.--:;~:.~. .... -" .' ":-:.;' ::....~ -~.-..;,"! ~ '" "''':' e -=:.&!. '.. "'-" - ' .:. ~-' , '" ,. e . REOUEST FOR CITY COUNCIL AGENDA ITE' _ Report X Department: Administration Agenda Date Requested: Requested By: John Joems Ordinance Exhibits: Resolution 98-.05 SUMMARY & RECOMMENDATION Resolution 98-05 is similar to other resolutions passed by the City when we are pursuing certain land acquisitions. This resolution authorizes Knox Askins, City Attomey of La Porte, to represent the City of La Porte in the acquisition of the described property for Park purposes. It further provides that in the event, the owners and the City cannot agree on fair market value, the City Attomey is authorized to initiate eminent domain proceedings to acquire the properties. Secondly, this resolution and attached documentation will be filed for record at the Harris County Courthouse. This information will be picked up by future title searches and therefore alert any potential buyers of th,ese properties that the City intends to acquire property for this project. Our intention is not to threaten the property owners, as we hope to proceed with amicable negotiations. However, this does put us in a position to move forward with condenmation if deemed necessary. Action Required by Council: Consider approval of Resolution 98-05 and authorize Knox Askins, City Attorney, to represent the City of La Porte in the acquisition of the d(~scribed property for Park purposes. Availability of Funds: General Fund_ 'WaterlWastewater _ Capital Improvement_ General Revenue Sharing Other Account Number: Funds Available: YES NO Approved for Citv Council Ae:enda ~~ 1. \-\~.... Robert T. Herrera City Manager ......-"tt.-I\ tG Date '. . e RESOLUTION NO. 98-~ A RESOLUTION AUTHORIZING THE ACQUISITION OF A TRACT OF LAND FOR PUBLIC PARK PURPOSES IN THE CITY OF LA PORTE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAfi, the City Council of the City of La Porte has found and determined that public necessity requires the acquisition of a tract of land for public park purposes on the hereinafter described real proper1:y, in the City of La Porte, Harris County, Texas; and WHEREAS, the City Council of the City of La Porte has found and determined that a tract of land the hereinafter described is suitable and needed for public park purposes, and that it is necessary tel acquire same for public park purposes; and WHEREAS, the City Council of the City of La Porte deems it advisable to, authorize, and does hereby authorize, Knox W. Askins, City Attorney of the City of La Porte, to represent the City of La Porte in the! acquisition of the hereinafter described property: NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section. 1. That the said Knox W. ASkins, as City Attorney for the city of La Porte, be and he is hereby authorized to negotiate with the owners of the hereinafter described land, concerning the acquisi tion by the City of La Porte, of the tract of land for public park purposes, located in Harris County, Texas, said tract of land bein.g more particularly described by metes and bounds on Exhibit "A" attached hereto, incorporated by reference herein and made a part hereof for all purposes, at the fair market value for same, and, should said City Attorney, as the duly authorized representative of the City of La Porte, be unable to agree with such owners as to the fair market value of such tract of land, then, and in that event, said attorney be, and he is hereby- e e authorized and directed to file against all owners and lienholders, proceedings in eminent domain to acquire the above descr ibed property, f()r public park purposes. 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 ci ty 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 resolution and the subject matter there!of 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 Resolution shall be effective from and after its passage and approval. PASSED AND APPROVED this 27th day of April, 1998. CITY OF LA PORTE By: l~../~-- Mayor ATTEST: ~aO. fufJ~ a ha A. Gillett City Secretary /J APPROVE. :J . .' '/'vI.. -, . Knox W. AskJ.ns city Attorney ft ~~~ 2 e e 33.6535 aCrE!S of land in the W.M. Jones Survey, Abstract No. 482, Harris Count:y, Texas, being more particularly described as follows: COMMENCING at a 5/8 inch iron rod at the intersection of the South right of way line of Spencer Highway based on a width of 100 feet with the West line of Canada Drive based on a width of 60 feet; THENCE South 03 deg. 18 min. 52 sec. East, 1857.16 feet and South 03 deg. 05 lnin 59 sec. East, 228.00 feet along the West right of way line of the said Canada Drive to a point for the PLACE OF BEGINNING and the Northeast corner of herein tract; THENCE South 03. deg. 05 min. 59 sec. East, a distance of 1601.30 feet for the Southeast corner of the herein described tract; THENCE South 86 deg. 56 min. 32 sec. West, a distance of 915.05 feet to a point on the East line of the Coastal Industrial Water Authority (C:.I.W.A.) right of way as described in the instrument recorded in the Harris County Deed Records under Harris County Clerk's FilE! No. E165986, for the Southwest corner of the herein described tract; THENCE North. 03 deg. 07 min. 53 sec. West, along the East line of said C.I.W.A. right of way a distance of 1601.17 feet to the Northwest corner of the herein described tract; THENCE North 86 deg. 56 min. 03 sec. East, a distance of 915.97 feet to the PLACE OF BEGINNING.. EXHIBIT "A" e e REOUE!FOR CITY COUNCIL AGENDA nt Agenda Date Requested: April 27. 1998 Requested By: s. Gillett -1~ Department: Public Works _ Report _ Resolution XXX Ordinance Exhibits: Ordinance 98-2232 General 'Warranty Deed Plat and Metes and Bounds of Parcel 2 SUMMARY & RECOMMENDA TJON On November 24, 1997, the City Council approved a resolution authorizing the City Manager to execute an Airport Project Participation Agreement with the Texas Department of Transportation, Aviation Division, to acquire land at the northwest comer of the La Porte Municipal Airport for a runway protection zone. The Agreement authorizes the Department to act as the City's agent in acquiring this property. As a part of the Project, the City is also acquiring right-of-way for the extension of Farrington Blvd. With the new alignment, a portion of the Lomax School Road Right-of-way south ofR Street will not be required. Parcel 2, as shown on the attached plat, will be deeded to the Owner of the adjacent property, with an avigation easement, in exchange for property being acquired for the Airport. The exchange is valued at $.35 per square foot, as established by formal appraisal. Action Required by Council: Approve Ordinance No. 98-2232 authorizing the City Manager to execute a General Warranty Deed to Earnest H. Grabbe. Availability or Funds: General Fund WaterlWastewater _ Capital Improvement_ General Revenue Sharing Other Account Number: N/A Funds Available: YES NO Aooroved for Citv Council A2enda ~~ 1. Robert T. Herrera City Manager ~ 4''t'L-''1~ Date e e ORDINANCE NO. 98- 2. 2.. ~ 1- AN ORDINANCB APPROVING AND AUTHORIZING THB CITY HAHAGER TO BX.BCUTB A GBNERAL WARRAHTY DEED TO ERHEST H. GRABBE, CONVBYING THE PROPBRTY THERBIN DESCJLUBED; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THB SUBJ]!:CT; FINDING COMPLIANCB WITH THE OPEN MBETINGS LAW; PROVIDING AN EFFBCTIVB DATB HEREOF. BE IT O:RDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: SectioD 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 whic::h is attached hereto and incorporated herein by this reference. ~rhe 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. SectioD 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place i!nd 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 tha.t this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereclf 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. e ORDINANCE NO. 98- ~ 2..32- e PASSED AND APPROVED, this 27th day of April, 1998. ATTEST: ~~ J.1I-11Iul artha A. Gillett City Secretary ~l APPROIl ~ ~~~~ City Attorney By: CITY OF LA PORTE ~/~~~ N rman L. lone Mayor P}.GE 2 . e RluEST FOR CITY COUNCIL AGENOAEM Agenda Date Requested: APRIL 27. 1998 Requested By: Guv Rankin c,tUv Department: Planning Report Resolution x Ordinance Exhibits: 1. 2. 3. Ordinance Exhibit "A" - Closings Requested Exhibit "B" - Easements Retained SUMMARY & RECOMMENDATION The City has been petitioned by La Porte Independent School District to close, vacate, and abandon the alleys in Blocks 276, 295, & 304, Town of La Porte; the East RH" Street and East "I" Street Rights-of-Way between San Jacinto & Arizona Streets; and the Arizona (5th) Street Right-of-Way between East "GR and Park Streets (see Exhibit RAR). The purpose of this request is to facilitate the District's current plan for construction of a new administration facility in Block 304, as well as its future plans for expansion. The Planning and Public Works Departments have reviewed this request and have determined the need to retain various utility easements to facilitate existing City and Harris County Flood Control facilities (see Exhibit "BR). Additionally, District representatives have coordinated with each of the City's franchised utility companies to arrange for abandonment and/or relocation of existing franchised utilities. In accordance with Article II, Section 62-35 of the Code of Ordinances, the District is exempted from the payment of fair market value to the City for the aforementioned rights-of-way. Recommendation Staff recommends clc,sing, vacating, and abandoning the alleys in Blocks 276, 295, & 304, Town of La Porte; the East RH" Street .and East RIR Street Rights-of-Way between San Jacinto and Arizona Streets; and the Arizona (5th Street) Ri!~ht-of-Way between East RGR and Park Streets and providing for various easements to be retained by the City and Harris County Flood Control. Action Required by Council: Consider approval of an ordinance to close, vacate, and abandon the alleys in Blocks 276, 295, & 304, Town of La Porte; the East "H" Street and East RIR Street Rights-of-Way between San Jacinto and Arizona Streets; and the Arizona (5th Street) Right-of-Way between East "GR and Park Streets and retaining various utility easements. Availability of Funds: N/A General Fund Capital Improvement Other Water/Wastewater General Revenue Sharing Account Number: Funds Available: YES NO Approved for City Council Agenda Q~\.~ y -2.1-9~ Robert T. Herrera City Manager DATE . . ORDINANCE NO. 98- 2 2 3 3 AN ORDINAN4CE VACATING, ABANDONING AND CLOSING THE ALLEYS IN BLOCKS 276, 295, & 304, TOWN OF LAPORTE; THE EAST "H" STREET RIGHT-OF-WAY BETWEEN SAN JACINTO STREET & ARIZONA (5m) STREET; THE EAST "I" STREET RIGHT-OF-WAY BETWEEN SAN JACINTO STREET & ARIZONA (5~ STREET; AND THE ARIZONA (5m) STREET RIGHT-OF-WAY BETWEEN EAST "G" STREET AND PARK STREET, TOWN OF LA PORTE, HARRIS COUNTY, TEXAS; RETAINING EASEMENTS FOR EXISTING WATER, SANITARY, AND STORM SEWER FACILITIES; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City Council of the City of La Porte has been requested by the record owner of all of the property abutting the hereinafter descnDed alleys in Blocks 276, 295, and 304, Town of La Porte; the East "H" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street; the East "I" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street; and the Arizona (5th) Street Right-of- Way between East "G" Street and Parle Street, Town of La Porte, Harris County, Texas; to vacate, abandon, and pennanently close the alleys of Blocks 276, 295, and 304, Town of La Porte; the East "H" Street Right- of-Way between San Jacinto Street and Arizona (5th) Street; the East "I" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street; aild the Arizona (5~ Street Right-of-Way between East "G" Street and Park Street, Town of La Porte, Harris County, Texas; and WHEREAS, the City Council of the City of La Porte has detennined and does hereby fmd, determine, and declare that the hereinafter described alleys of Blocks 276, 295, and 304, Town of La Porte; the East "H" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street; the East "I" Street Right-of-Way between San Jacinto Street and Arizona (sth) Street; and the Arizona (Sth) Street Right-of- Way between East "G" Street and Parle Street, Town of La Porte, Harris County, Texas, is not suitable, needed, or benefil::ial to the public as a public road, street, or alley, and the closing of hereinafter described alleys of Blocks 276, 295, & 304, Town of La Porte; the East "H" Street Right-of-Way between San Jacinto Street and Arizona (5~ Street; the East "I" Street Right-of-Way between San Jacinto Street and Arizona Street; and the Arizona (5th) Street Right-of-Way between East "G" Street and Parle Street, Town of La Porte, Harris County, Texas, is for the protection of the public and for the public interest and benefit, and that the hereinaft€:T described alleys in Blocks 276, 295, and 304, Town of La Porte; the East "H" Street Right-of-Way between San Jacinto Street and Arizona (51h) Street; the East "I" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street; and the Arizona (5th) Street Right-of-Way between . e Ordinance No. 98- 22 3 3 e 2 East "G" Street and Park Street, Town of La Porte, Hanis COWlty, Texas, should be vacated, abandoned, and pennanently closed. BE IT ORDAllifED BY THE CITY COUNCn. OF THE CITY OF LA PORTE: Section 1. Under and by virhle of the power granted to the City of La Porte under its home rule charter and Chapter 253, Section 253.001, Texas Local Government Code, the hereinafter desaibed alleys of Blocks 276,295, & 304, Town of La Porte; the East "H" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street; the East "I" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street; and the Arizona (5th), Town of La Porte, Hanis County, Texas, as generally depicted by Exhibit "A", is hereby permanently vacated, abandoned, and closed by the City of La Porte, to wit: The alleys in Blocks 276, 295, and 304, Town of La Porte as shown on Exhibit" A" attached hereto. Provided, however, the City of La Porte saves and excepts a to-foot wide sanitary sewer centerlillle easement located adjacent to the alley in Block 276 as shown on Exhibit "B" attached hereto. The East "H" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street as shown on Exlullit "A" attached hereto. Provided, however, the City of La Porte saves and excepts an eighty-fclot wide water, sanitary sewer, and drainage easement located within the existing East "H" Street Right-of-Way as shown on Exhibit "B" attached hereto. The East "I" Street Right-of-Way between San Jacinto Street and Arizona (5th) Street as shown on Exhibit "A" attached hereto. Provided, however, the City of La Porte saves and e.,,<cepts a sixty- foot wide water and sanitary sewer easement located within the existing East "I" Street Right-of- Way as shown on Exhibit "B" attached hereto. The Arizona (S~ Street Right-of-Way between East "G" Street and Park Street as shown on Exhibit "A" attached hereto. Provided, however, the City of La Porte saves and excepts for itself e Ordinance No. 98- 22 3 3 e 3 and Harris Cowty Flood Control District a sixty-foot wide water, sanitary sewer, and dIainage easement located within the existing Arizona (5th) Street Right-of-Way as shown on Exhibit "B" attached hereto. Said public utility easements shall be further subject to the provisions and restrictions contained in Sections 2 & 3 of this ordinance. Section 2. The City of La Porte, for itself, its successors and assigns, and Harris Cowty Flood Control District, shall have the perpetual right, privilege and easement, with appropriate rights of ingress and egress and reasonable working area for construction and maintenance, to enter upon and construct, reconstruct, maintain, opel3te; inspect, replace, restore, repair, and remove public utility facilities. together with all necessary improvements in, over, wder, through and across the public utility easements retained and desaibed in Section 1. Section 3. No buildings, awnings, overbangs, or other structures may be placed on, over or across the public utility easements retained and desaibed in Section 1. Provided, however, nothing in this paragraph shall prevent the right of the owner of said property, to pave, landscape, or otherwise use the surface of said public utility easements, with the exception of Arizona (5th) Street, so long as such use is not inconsistent with the rights of the City of La Porte. All paving plans and specifications shall be subject to the prior approval of the City of La Porte, including, but not limited to the placement of construction joints in any. paving. Any surface or other use of Arizona (5th) Street shall be subject to previously recorded easement Volume 7127 Pages 296-97 of the Hams County Deed of Records, shall be consistent with the rights of the City of La Porte and Hams County Flood Control District as desaibed in Section Two and shall require prior approval of both the City and Harris County Flood Control District The City of La Porte and Harris County Flood Control District shall not be obligated to restore or repair any such paving, landscaping or other improvements disturbed, damaged, or removed by the exercise of such public utility rights and privileges described in Section 2. e Ordinance No. 98- 2233 e 4 Section 4. The City Council officially finds, detennines, 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 discussc~ considered, and fonnally acted upon The City Council further ratifies, approves, and COnIlfDlS such Mitten notice and the contents and posting thereof. Section 5. This oIdinance shall be effective from and after its passage and approval, and it is so ordered. Applicant shall have forty-fIVe (45) days from the effective date hereof for the submission, approval, and recordation of the final plat dedicating said easements as defined in Section One of this Ordinance. The City Secretary shall not issue a certified copy of this Ordinance until the above-descn"bed prerequisite has been performed. If such prerequisite has not been performed within forty-five (45) days from the effective date hereof, this Ordinance shall be null and void PASSED AND APPROVED, THIS 27th DAY OF APRIL 1998. CITY OF LA PORTE By:~,/ft(if- Norman L. Malone, Mayor ATTEST: ~ OJUAfL J:f Jlwf Martha Gillett, City Secretary " S\' "G ~. N.T.S. " S\,. "'\\ ~. PROPOSED CLOSINGS " S:\. "\ ~. ~ 0..'<: LA PORTE HIGH SC;HOOL EXHIBIT - "A" CLOSINGS REQUESTED I PROPOSED 10' SAN. SEWER CE ""i" " s', "<0 ~. N.T.S. f) L/ D ~ PROP, tJJ' WATER, SAN. SEWER & DRAINAGE ESMT. " s', "'0 ~. , S:\. ,'\ ~. LA PC)RTE HIGH SC;HOOL EXHIBIT "B" EASEMENTS RETAINED . e e 'QUEST FOR CITY COUNCIL AGENDAEM AGENDA DATE April 27. 1998 REQUESTED BY Jeff Litchfield, Finance Director/ACM xx REPORT; __ RESOLUTION; _ ORDINANCE; At Monday's meeting, it is anticipated that we will be able to present to you a contract between the La Porte Area Water Authority, the Gulf Coast Water Authority, the City of Galveston and the City of La Porte re!~arding the purchase of additional capacity at the Southeast Water Purification Plant. This item was covered in detail at the January 26, 1998 City Council Workshop. At this time, the agreements have not been approved by the La Porte Area Water Authority (LPAWA). LPAWA did meet on April 22, 1998 and is scheduled to meet again prior to this Council Meeting. Our current plan of action is to received the final draft of the contract on Friday, April 24, 1998. At that time, it will be distributed to City Council Members. We apologize in advance for the rush being placed on this item, however, it is necessary to meet deadlines imposed in the contracts with the other participants (which are Clear Lake City Water Authority, Harris Cc)unty MUD 55, and the City of League City). We have worked diligently towards the approval of this agreement. I have attached for your review a copy of a letter reviewed by the LPAWA at their April 22, 1998 meeting. ACTION REQUIRE:D BY COUNCIL: This report is inforrnation only. The actual action item requirements will be distributed later. FUND N/A ACCT NUM: FUNDS AVAILABLE: APPROVED FOR CITY COUNCIL AGENDA G{~ T. \-T~. ROBERT T. HERRERA, CITY MANAGER ". aa ~'\ro DATE e ORDINANCE NO. 98-2234 e AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE LA PORTE AREA WATER AUTHORITY, GULF COAST WATER AUTHORITY, AND THE CITY OF GALVESTON Fon THE PURCHASE OF WATER CAPACITY AT THE SOUTHEAST WATER PURIFICATION PLANT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDII\lG 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 Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2 The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the lPublic 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 in effect from and after its passage and approval. PASSED AND APPROVED this the 27th day of April, 1998. CITY OF LA PORTE, TEXAS ~dA.~~7~ / '~an Malone, Mayor ATTEST: ~()AfJ1tL. JljjJtd Ma ha Gillett, City Secretary e e RESOLUTION 98-01 A RESOLUTION APPROVING WATER CAPACITY PURCHASE AND SALE AGREEMENT AND ESCROW AGREEMENT . WHEREAS, the Gulf Coast Water Authority (the" Authority"), as a co-owner of . the City of Houston's Southeast Treatment Plant (the "Southeast Planf), and the City of Galveston, Texas ("Galveston") have indicated a desire to sell a.portion of the capacity in the Southeast Plant in which Galveston has an equitable interest to other parties; and, WHEREAS, pursuant to Resolution No. 97-01, approved by the Board of Directors on August 27, 1997, the La Porte Area Water Authority has previously expressed an interest in purchasing 3 MGD of such capacity at a price of $1.1688, and has expressed its desire to contract for the purchase and/or financing of such capacity; and WHEREAS, the City of Houston ("Houston") and the La Porte Area Water Authority have entered into an amendment to the Cost Sharing Water Contract between such pal1ies dated as of January, 1998 (the "Amendment"), which Amendment will, upon satisfaction of the conditions contained therein, increase La Porte Area Water Authority's right to production capacity and pumping capacity from the Southeast Plcmt; and WHEREAS, the Board of Directors has been presented with a Water Capacity Purchase and Sa:le Agreement to be entered into among the La Porte Area Water Authority, the Authority and Galveston, pursuant to which 3 MGD of capacity in the Southeast Plant will be conveyed from Galveston to La Porte Area Water Authority, and the Board desires to approve La Porte Area Water Authority's entering into such agreement and escrow agreement. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE LA PORTE AREA WATER AUTHORITY: Section 1. That the Board of Directors hereby approves the Water Capacity Purchase and Sale Agreement substantially in the form as presented to the Board of Directors for their review. Section 2. That the Board of Directors hereby authorizes the President and Secretaryrrreasurer of the La Porte Area Water Authority to execute and deliver such Water Capacity Purchase and Sale Agreement, with such additions, deletions and other changes by such document as such La Porte Area Water Authority shall approve, such approval to be conclusively evidenced by their execution and delivery thereof. e e Section 3. That this resolution shall be in full force and effect from and after its passage and adoption. PASSED AND ADOPTED this 27th day of April, 1998. LA PORTE AREA WATER AUTHORITY ~ ATTEST:/\ By: ~~ Albert D. Fields, SecretarylTreasurer e e La Porte Area Water Authority Interoffice Memorandum To: From: LPAWA Board Members Robert T. Herrera, General Manager Steve Gillett, Director of Public Works ~itchfield, Director of Finance DAPril 22, 1998 Date: Subject: Water Capacity Sale and Purchase Agreement As discussed at tl1e Water Authority meeting of March18, 1998, staff was still in negotiations with the other parties to the Water Capacity Sale and Purchase Agreement trying to arrive at an agreement that we felt comfortable presenting to you. After several more discussion, Mr. Herrera requested a face to face meeting with all parties involved. On Friday, April1th, a meeting was held, via a conference call, with about 15 parties involved in the process. As a result of that meeting, we have reached an agreement that we feel comfortable presenting to you. In addition to the agreement, it is equally important that we discuss the various financing options that are available to the Authority. Before going any further, let me reiterate the importance of this project. This is a commitment of almost $3.5 million dollars to purchase 3 million gallons of water capacity for use by the three member cities. As we have shared with you in the past, this water is vital to the continued growth of the member cities. Currently, Shoreacres and Morgan's Point are at their current allotment while La Porte is at about 80% of theirs. As shared with you at the last meeting, the impact of this purchase on La Porte is to provide water for the next 20 to 40 years. Water Capacity Sale and Purchase Agreement As verbally discussed at the last meeting, we were very displeased in the offer being made by the Gulf Coast Water Authority and City of Galveston (hereinafter referred to collectively as Gulf Coast). In essence, Gulf Coast wanted us to agree to put $500,000 down, pay $500,000 every six months into an escrow until funding was completed. If for any reason thE! Authority was unable to complete the funding of the escrow, then the Authority forfeited all funds they had placed into escrow and received no capacity. The instructions we received from the Board was to move forward with negotiations to secure us a favort:lble agreement while remembering the water purchase is very important to our future, so do not do anything that would jeopardize the agreement. e e At this time, we bl3lieve we have a good agreement, which is as follows: The Authority agrees to purchase 3 million gallons capacity from Gulf Coast. The Authority will agree to put up $500,000 out of its current funds as a down payment towards this purchase. The Authority agrees to fully fund an escrow account with an additional $2,912,700 over the next 39 months {with no specific deposit schedule being stated}. The cost of water purchased is at 99 cents per gallon for the $500,000 being paid now and at ~i1.1688 per gallon for the amounts paid in 39 months. The Authority gets full credit for all interest paid into the escrow account. Meeting our Financial Obligation Since we have determined we would like to pay for the purchase without issuing debt, the process becomes very complicated. In the next few paragraphs, I will outline the guidelines that I am working under in order to make this deal become a reality. First and foremost is the assumption that if, at the end of the term, there are not sufficient funds to pay for the full purchase price, the issuance of debt will be required. The debt can be issued either by the Authority or the City of La Porte. Please keep this in mind as we go through this discussion. A work sheet has been prepared to walk us through a portion of the funding scenario. It is attached to this letter. Currentlv Available Funds The best place to begin our discussion is to cover funds that are currently available. The remaining 19138 Bonds Funds are available to pay for this project. The balance of these funds will bE~ about $339,417 at May 30, 1998. These funds are shown as line 1.a. The next best source are the funds that we began collecting last fiscal year as Capital Recovery Fees. These fees were specifically assessed to offset the impact of purchasing additional capacity. As of May 30, 1998, these funds should have grown to $306,601. This is depicted on line 1.b. Next is a source that we have not discussed in any great detail. It is the use of the operating fund Working Capital Balance. Working Capital is how the City {and most governmental entities} measure their financial condition. Working capital is very simply the difference between Current Assets and Current Liabilities. It is important that a fund maintain a cE!rtain level of Working Capital in order to meet financial obligations during billing and payment cycles as well as handle unforeseen emergencies. e e The City of La Porte operates under financial policies adopted by Council in 1991. Included in these policies is the definition of the amount of the Working Capital Reserve for Operating Funds. The simple definition is that the targeted end of year balance for Working Capital is between 90 to 120 days of operating expenses. As of September 30,1997, the Working Capital Balance for the Operating Fund was $496,530. The operating expenses for the year were $628,186. This represents 288 days of Working Capital. The Authority can very easily utilize $341,635 of the available working capital bi31ance and still have 90 days remaining. This is shown as line 1.c. The sum of these three currently available resources is $987,653, which is more than adequate to meet the $500,000 down payment by June 1, 1998 requirement. Currentlv Proarammed Future Funds After paying the clown payment, the Authority will still have $487,653 available to fund the project. In addition to this current funding amount, there are other items currently programmed to generate revenues. First, interest income (at 5.75%) should generate $97,137 on the $487,653 balance from June 1, 1998 to August 1, 2001. This is shown as line 2.a. Also, the continued billing of the Capital Reserve Amount will generate an additional $610,724 for the same period. This is shown as line 2.b. The result of on hand funding and currently programmed funding generates $1,195,514 towards the $2,912,700 to fund the project. This leaves a balance of $1,717,186 for us to plan funding. Future Funds There are severall different methods to fund the additional amount that is needed for the purchase. As previously indicated, either the Authority or the City can issue debt for the difference. If it was necessary to issue debt, the amount of the annual debt service payments would be very similar to the amount that is currently being billed as the Capital Reserve Fee. However, before considering the issuance of $1.7 million in debt, we need to discuss the impact of refunding. On December 1, "1998, the Authority can refund the 1988 issue. At that time, a decision will be made as to how the refunding will occur. There are three different methods of refunding. Briefly, they are: Level Annual Savings - a method whereby the savings are spread over the life of the existing debt. For example, you have annual payments of $825,000 for 18 years. When you refund you have annual payments of $750,000 over the same 18 years. In other words, you have level savings from year to year. e e Savings At End -. a method where the savings are recognized in the later years of the debt. For example, you have annual payments of $825,000 for 18 years. When you refund, you have annual payments of $825,000 but for only 16 more years. In other words, you have pushed all your savings into the future by shortening the length of your debt. Savings Up Fronlt - a method where the savings are recognized early in the process. For example, yoU! have annual payments of $825,000 for 18 years. When you refund, you have annual payments of $300 for the first three years then increase to $825,000 for the remaining 15 years. This method allows for the immediate generating of cash without any ups or downs in cash flows. I asked Dave Fetzer of Moroney & Beissner to run Analysis and Savings Reports on the Authorities dE!bt and found that, based on current market conditions, budget dollar savings (amounts; that can be spent towards the purchase of the water) would be $300,000 for the ilevel annual savings method and a little over $1.2 million for the up front savings method. In addition to this amount, there should be another $200,000 to $400,000 of cash freed up by getting out from under the Texas Water Development Board's reserve r'equirements. Finally, the City of La Porte is in a position to pay directly to the Authority funds necessary to complete the purchase. Closing and Rec:ommendation In closing, I believe we have reached a point where a workable contract has been received from Gullf Coast and recommend it be considered by the Authority. As to the funding of the purchase price, I would recommend that staff be directed to proceed with the following plan: 1. Utilize the lexisting funds that have been identified (left over bond funds, capital recovery fe!es and available working capital balance. 2. Utility intefiest earnings on the above funds and continue with the collection of the Capital Recovery Fee. 3. Proceed with the refunding of the Authority's existing debt, with consideration of the Up Front Savings method. 4. In the first quarter of 1999, obtain a commitment from the City for the balance of the purchase price or proceed to issue new debt to cover the amount. e - WATER CAPACITY PURCHASE AND SALE AGREEMENT . This WA T'ER CAPACITY PURCHASE AND SALE AGREEMENT (this "~Agreement") 'is made and ent,ered into as of the 28th day of April, 1998, between GULF COAST WATER AUTHORITY, a conservation and reclamation district and political subdivision of the State of Texas created pursuant to Article XVI, Section 59 of the Texas Constitution and with the powers under Chapters 49 and 54 Texas Water Code, as amended ("GCWA"), the CITY OF GALVESTON, TEXAS, a municipal corporation located in Galveston County, Texas ("Galveston"), and the LA PORTE AREA V'iA TER AUTHORITY, a conservation and reclamation district authorized and created under Article XVI, Section 59 of the Texas Constitution and acting under Chapters 49 and 54, Texas Water Code, as amended ("LPAWA"). WITNESSETH WHEREAS, The City of Houston, Texas, a municipal corporation located principally in Harris County, Texas ("Houston"), and GCWA, acting for the benefit of Galveston and the City of League City, Texas ("League City") are parties to that certain Cost Sharing Water Project Contract, effective as of April 30, 1987 as amended (the "CGWA Contract"), under the terms of which GCWA purchased, on behalf of Galveston and League City, an equitable ownership interest in the City of Houston Southea:st Water Purification Plant (as more fully described in the GCWA Contract, the "Project", but referred to herein as the "Southeast Plant"); and WHEREAS, the Southeast Plant has a maximum production capacity of 80 MGD and GCWA's equity ownership interest entitles it to 26.25% of the production capacity of the Southeast Plant (or 21 MGD) and 10.845% of the pumping capacity of the Southeast Plant (or 24.4 MGD) (collectively, "GCWA's Interest"); and WHEREAS, pursuant to Section 2.01 of the GCWA Contract, GCWA conveyed to Galveston a 76.19% share of GCWA's Interest in the Southeast Plant (16 MGD production capacity) and related pumping capacity (18.40 MGD) ("Galveston's Interest") and to League City a 23.81 % share of GCWA's Interest in the Southeast Plant (5 MGD production capacity) and related pumping capacity (6 MGD); and WHEREAS, Galveston deems it more efficient and desirable to obtain its treated water supply from GCWA's Thomas S. Mackey Water Treatment Plant (the "Mackey Plant"), which is. located closer to Galveston; and . . . WHEREAS, at the request of Galveston, GCWA has agreed to use its best efforts to issue a series of contract water revenue bonds for the purpose of financing an addition of capacity to the Mackey Plant and a pipeline to deliver the water to Galveston and such parties; and WHEREAS, LPAWA, the Clear Lake City Water Authority, Harris County Municipal Utility District No. 55 and League City (through GCWA) (collectively the "Participants" or individually, a "Participant") are present co-owner participants with Houston and others in the Southeast Plant, and each delivered to GCWA and Galveston resolutions in which their governing bodies expressed interest in purchasing a portion of Galveston's Interest in the Southeast Plant; and 1 e e WHEREAS, pursuant to Section 6.17 of the GCWA Contract, GCWA and Galveston are free to sell or dispose of their Pumping Capacity and Production Capacity (both as defined in the GCWA Contract) in the southeast Plant, and Galveston has indicated to GCWA Galveston's desir.e to transfer all of Galveston's Interest to the Participants in the respective amounts indicated on Exhibit A hereto as evidenced by an executed Conveyance of Interest substantially in the form of Exhibit B hereto (the uConvevance of Interesr> and requested GCWA to take celrtain actions in order to facilitate the transactions described above; and WHEREAS., the parties desire that such purchase, sale and transfer of LPAWA's Interest (as hereinafter delr.ned) to LPAWA shall be effective as of the Transfer Date (as hereinafter defined); and WHEREAS, Houston and LPAWA have entered into an amendment to the Cost Sharing Water Contract bE~tween such parties (the uAmendmenf), which Amendment will, upon the Transfer Date, increase LPAWA's right to production capacity and pumping capacity from the Southeast Plant b~' an amount equal to LPAWA's Interest; and WHEREAS, pursuant to Section 49.211, Section 49.213, Section 49.218, and Section 49.219, Texas Water Code, as amended, and Chapter 791, Texas Government Code, as amended, LPAWA, Galveston, and GCWA are authorized to enter into the transactions herein described in order to fulfill their respective public purposes; and NOW THEREFORE, in consideration of the premises, and for good and valuable consideration GC\NA, Galveston and LPAWA agree as follows: ARTICLE I DEFINITIONS In addition lto the defined terms set out above, the following defined terms are assigned the meanings set fCJrth below: . UDelivery Date" shall mean the date of issuance and delivery of the Series 1998 South Project Bonds which shall be a date on or before August 1, 1998. "Down Pavmenr shall mean the $500,000 down payment on the Purchase Price for LPA",!A's Interest, to be paid by LPAWA to GCWA. "Escrow Aaenf' shall mean Chase Bank of Texas, National Association, its successors and assigns. "Escrow AOreemenf shall mean that certain Escrow Agreement, dated as of the First Payment Date, substantially in the form of Exhibit C hereto. "First Pavment Date" shall mean June 1, 1998. 2 e e "GalvestlJn Obligationn means for each 12 month period commencing on the Transfer Date the amount set forth in Exhibit D, which represents an equivalent amount of debt service owed by Galveston on the debt incurred by Galveston for the purchase of LPAWA's Interest by Galveston equivalent to the Purchase Price, multiplied by a fraction, the numerator of which is the Purchase Price less the Down Payment and the amount paid by the Escrow Agent to GCWA on such date and the denominator of which is the Purchase Price, except that the amounts set forth in Exhibit D shall be reduced from time to time to allocate any savings received by Galveston from any restructuring on such debt. "LPAWA's Interestn shall mean LPAWA's portion of Galveston's Interest in the Southeast Plant which LPA.WA will purchase on the Transfer Date, as shown on Exhibit A. "Payment Daten shall mean the date on which LPAWA tenders partial payment of the Purchase Price for LPAWA's Interest to GCWA in immediately available funds, which shall be any business day on or after the First Payment Date. "Purchase Pricen shall mean the amount of $3,412,700. "Series 1998 South Proiect Bondsn shall mean the initial contract water revenue bonds issued in one or more series which GCWA shall issue as special project bonds of its Mainland Division the proceeds of which shall be used to finance the South Project. "South Project" shall mean the approximately 25 MGD expansion of the Mackey Plant and related distribution facilities. "Transfer Daten shall mean the earlier of August 1, 2001, unless the South Project cannot be completed by such date, in which case the Transfer Date shall mean the date on or before May 1, 2002, on whilch Galveston ceases to take deliveries of water from the Southeast Plant attributable to LPAWA's Interest. "Water Capacity Purchase and Sale Agreementsn shall mean those separate Water Capacity Purcha!ie and Sale Agreements between GCWA and each of the Participants (including LPAWA), dated as of even date herewith. , 3 e e ARTICLE II FINANCING AND CONSTRUCTION OF SOUTH PROJECT; TRANSER DATE; AND CONVEYANCE OF INTEREST Section 2.1: Financina and Construction of South Proiect (a) GC\NA agrees to use its best efforts to issue the Series 1998 South Project Bonds on or before August 1, 1998. Galveston agrees to enter into a contract to purchase water from GCWA and to take all actions necessary on its part or reasonably requested by GCWA related to the issuance of the Series 1998 South Project Bonds. (b) GC\NA agrees to commence design of the South Project within thirty (30) days of the Delivery Date. GCWA shall use reasonable diligence in constructing and completing the South Project within three (3) years after the Delivery Date but in no event later than four (4) years after the Delivery Date. (c) LPAWA agrees to pay to GCWA the Down Payment not later than the First Payment Date. In ;addition, LPAWA will deposit with the Escrow Agent on or before the Transfer Date the remainder of the Purchase Price. If, on the Transfer Date, there are for any reason insufficient amounts held by the Escrow Agent for payment of the Purchase Price, then Galveston shall transfer to LPAWA LPAWA's Interest; provided, however, until the remainder of the Purchase Price is tendered in whole, LPAWA shall pay directly to Galveston on the Transfer Date and each armiversary of the Transfer Date, thereafter from the revenues of its water system the Galveston Obligation, and to secure payment of the Galveston Obligation, Galveston shall retain a security interest in LPAWA's Interest in a form to be agreed to by the parties. (d) LPAWA, Galveston and GCWA each hereby represents and warrants that it has full right, power, and authority to enter into this Sale Agreement and it is the legal, valid, and binding obligation ()f such party, such enforceability being subject only to rights of creditors in bankruptcy and the application of equitable principles generally. Section 2.2: Conveyance of LPAWA's Interest On or before the Transfer Date, upon or after payment by LPAWA of the full amount of the Purchase Price, or a partial amount thereof pursuant to Section 2.1(c) above, GCWA and Galveston shall deliver to LPAWA, with a copy to the City of Houston, the executed Conveyance of Interest substantially in the form attached hereto as Exhibit B.. The dated date of such Conveyance of Interest shall be the Transfer Date. . 4 e e ARTICLE III DEFAULT AND REMEDIES Section 3.1: Default. The following shall be considered a default under this Sale Agreement: (a) the failure of LPAWA to pay the Down Payment to GCWA on or before the First Payment Date; or (b) the failure of LPAWA to pay the full amount of the Purchase Price to the Escrow Agent for the account of GCWA, as set forth in Section 2.1 (c) hereof. (c) the failure of GCWA and/or Galveston to perform and observe in a timely manner any of the covenants contained in Section 2(a) or (b) of this Sale Agreement if such failure is not cured within sixty (60) days after notice specifying such default is given to GCWA and Galveston. (d) the Tr~nsfer Date has not occurred by May 1, 2002. Section 3.2: Remedies Upon Default (a) It i~; not intended hereby to specify (and this Sale Agreement shall not be construed as specifying) an exclusive remedy for any default, but all remedies existing at law or in equity (including specific performance) may be availed of by either party and shall be cumulative. (b) Notwithstanding the aforesaid, Galveston and LPAWA acknowledge that GCWA has entered into this Sale Agreement as an accommodation to Galveston, and GCWA, its officers, directors, agents employees and customers will obtain no individual benefit and have no individual liability for fulfilling its public purpose of acting as a financing conduit for the benefit of Galveston. LPAWA's remedies against GCWA for a default under Section 3.1 (c) shall be limited to specific performance. (c) Notwithstanding the aforesaid, Galveston and GCWA acknowledge that LPAWA has entered into this Sale Agreement as an accommodation to the City of La Porte, Texas, and LPAWA, its officers, directors, agents employees and customers will obtain no individual benefit and have no individual liability for fulfilling its public purpose of acting as a financing conduit for the benefit of the City of La Porte. GCWA's remedies against LPAWA for a default under Section 3.1 (a) or :3.1 (b) shall be limited to specific performance. (d) Notwithstanding anything in this Section 3.2 to the contrary, in the case of the occurrence and cclntinuance of a default under Section 3.1 (d), GCWA and Galveston shall not be required to transfer LPAWA's Interest to LPAWA so long as Galveston is not able to obtain a supply of potable .water from the South Project and GCWA shall immediately refund the Down Payment paid the by LPAWA. plus accrued interest thereon at 5% per annum calculated on a year of 360 days from date Of Down Payment to date of refund. Before proceeding to a suit at law after a default under Section 3.1 (d) the parties agree to enter into non-binding mediation of the issues in dispute for a period not to exceed ninety (90) days. The parties shall agree on the independent mediator. 5 e e (e) In the case of a default under Section 3.1 (a), GCWA and Galveston may, for a 30-day period after such default, offer LPAWA's Interest to the other Participants and then to other co-owner participants in the Southeast Plant. If another party assumes the rights and obligations of LPAWA hereunder, LPAWA shall be relieved of its obligations hereunder to the extent GCWA and Galveston receive payment from the assuming party. Section 3.3 No Additional Waiver Implied. No waiver or waivers of any breach or default (or any breaches or defaults) by either party hereto of any term, covenant, condition, or liability hereunder, or of performance by the other party of any duty or obligation hereunder, shall be deemed or construed to be a waiver of subsequent breaches or defaults of any kind, under any circumstance. Section 3.4: Force Maieure. If Force Majeure (as hereinafter defined) prevents either party hereto from performing any of its obligations under this Sale Agreement, in whole or in part, then the obligations of such party, to the extent affeded by such Force Majeure, shall be suspended durin" the continuance of any inability so caused, so long as such party is exercising due diligence to resume performance at the earliest practicable time. As soon as reasonably possible after thE! occurrence of the Force Majeure relied upon, the party whose contradual obligations are affeded thereby shall give written notice and full particulars of such Force Majeure to the other party. The term "Force Majeure," as used herein, shall include, without limitation of the generality thereof, ads of God, strikes, lockouts, or other industrial disturbances, ad:s of the public enemy, orders of any kind of the Govemment of the United States, or the State of Texas, or of any civil of military authority, epidemics, landslides, drought, lightning, earthquakes, fires, hurricanes, storms, floods, surface or ground water of unusable quality, washouts" droughts, arrests, restraint of govemment and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, or failure of supply of raw water to GCWA f'rom third parties and any other inabilities of either party, whether similar to those enumerated or otherwise, which are not within the control of the party claiming such inability, and which such party could not have avoided by the exercise of due diligence and care. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the party having the difficulty and that the above requirement that any Force Majeure shiElII be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding. to the demands of the opposing party and parties when such settlement is unfavorable to it in the judgment of the party having the difficulty. ARTICLE IV TERMINATION GCWA or Galveston may terminate this Sale Agreement by notice in writing if any of the Participants shalll:ail to execute and deliver their respedive Water Capacity Purchase and Sale Agreements on of' before May 1, 1998. GCWA's and Galveston's option to terminate this Sale Agreement under this Article IV shall be exercised not later than May 6, 1998. If GCWA terminates this Selle Agreement pursuant this Article IV, or if the events described in Section 2(a) of the Escrow Agreement occur, GCWA shall immediately refund the Down Payment paid by the LPAWA plus accrued interest thereon at 5% per annum calculated on a year of 360 days from date of Down Payment to date of refund. 6 e e ARTICLE V MISCELLANEOUS Section 5.1: Addresses and Notice. Unless otherwise provided in this Sale Agreement, any notice, communication, request, reply, or advice (herein severally and collectively, for convenience, called "Noticej herein provided or permitted to be given, made, or accepted by either party to the other must be in writing and may be given or be served by (i) depositing the same in the United Sates mail postpaid and registered or certified and addressed to the party to be notified, with return receipt requested, (ii) by delivering the same to an officer of such party, or (iii) by overnight delivery, receipt of which is confirmed by the sender by prepaid telegram, when appropriate, addressed to the party to be notified. Notice shall be conclusively deemed to be effective upon receipt. Notice given in any other manner shall be effective only when received by the party to be notified. For the purpose of Notice, the addresses of the parties shall, until changed as hereinafter provided, be as follows: If the GCWA, to: Gulf Coast Water Authority 3630 Highway 1765 Texas City, Texas n591 Attn: Gordon L, Myers, General Manager If to Galveston, to: City to Galveston 823 Rosenberg Galveston, Texas n550 Attn: Steve LeBlanc, City Manager If to LPAWA, to: La Porte Area Water Authority 604 W. Fairmont Parkway La Porte, Texas 77571 Attn: Robert T. Herrera, General Manager The partiel; shall have the right from time to time and at any time to change their respective addresses and each shall have to right to specify as its address any other address by at least five (5) days' written notice to the other parties. Section 5.~~: Modification. This Sale Agreement shall be subject to change or modification only with the mutual written consent of GCWA, Galveston and the LPAWA. 7 e e Section 5.:S: Assianabilitv. This Sale Agreement shall not be assignable by any party without the prior written consent of the other parties hereto. No third party shall be a beneficiary of this Sale Agreement except permitted assigns. Section 5.4: CaDtions. The captions appearing at the first of each numbered article and section in this Sale Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Sale Agreement, or any provision hereof, or in connection with the duties, obligations, or liabilities of the respective parties hereto or in ascertaining intent, if any question C?f intent should arise. Section 5.!;: Severabilitv. The provisions of this Sale Agreement are severable, and if any provision or part of this Sale Agreement or the application thereof to any person or circumstance shall ever be held by any court or competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Sale Agreement and the application of such provision or part of this Sale Agreement to other persons or circumstances shall not be affected thereby. Section 5.6: Exhibits. The exhibits attached hereto are incorporated herein for all purposes. Section 5.7': Meraer. This Sale Agreement constitutes the entire agreement between the parties relatiVE! to the subject matter hereof. There have been and are no agreements, covenants, represE!ntations or warranties between the parties other than those expressly stated herein or expressly' provided for herein. Section5.a:: Counteroarts. This Sale Agreement may be executed in any number of counterparts, and I:!ach such counterpart shall be, and shall be deemed to be an original. All such counterparts l;hall constitute but one and the same instrument. 8 - e IN WITNESS WHEREOF, the parties have executed the Agreement as of the date and year first written in this Agreement LA PORTE AREA WATER AUTHORITY ~~ ATTESTi~ ~_. By: ~~~ Albert D. Fields, Secretaryrrreasurer THE FOREGOING AGREEMENT HAS BEEN APPROVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS BY ITS ORDINANCE NO. 98- :J;:;).3Lf PASSED AND APPROVED APRIL 27, 1998 CITY OF LA PORllE, TEXAS BY~/~~~ an Malone, Mayor -. By: ATTEST: . BY~/.l,,!filjdL Ma a Gillett, City Secretary 9 ATTEST: By: Name: John W. Knust Title: Secretary-Treasurer e e GULF COAST WATER AUTHORITY By: IIJ\Ji~ Name: W. W. timer Title: presidelt 10 tit ATTEST: By: ~..L~ __ ~--.__~ _ __ Name: Barbara Lawrence Tide: City Secretary ~"PR~ ED AS ~~ C!T'r IiTfORflE:Y . e 11 Pumping Allocation Factor w/i SEHWTP at 225 mgd CQpacity Pumping Allocation Factor EXIIlBIT A Production/Pumping Capacity Allocation Demand Allocation Factor w/i SEHWTP at 80 MOD Pumping CalHlGi~ . Demand Allocation EBmnr Demand AlI~1inn1MQID e 2.667% .8.178% 10.845% 24.590% 75.410% 100.000% 6.0000 18.4000 24.4000 6.250% ~0.000% 26.250% 23.810% ..:Ln. 190% 100.000% 5.0000 .lD.Onnn 21.0000 !;.llInntJrlth GCW A City of League City City of Galveston - Galveston's Interest 1.533% 2.556% 1.022% 3.067% 8.178% 14.139% 23.566% 9.426% 28.279% 15.410% 3.4500 5.1500 2.3000 6.9000 18.4000 3.750% 6.250% 2.500% Uill}% 20.000% 14.286% 23.810% 9.524% 28.570% 16.190% 3.0000 5.0000 2.0000 (l.OOOO 16.0000 Allocation..n(Gnlmton.1SIUlu La Porte Area Water Authority Clear Lake City Water Authority Harris County MUD 1#55 City of League City ..... I\l e 5.733% 5.733% 52.870% 52.870% 12.9000 12.9000 13.750% 13.7;0% 52.380% 52.380% 11.0000 11.0000 GCW A 's SIUlrLCllSElIWTP alfer Tramfu City of League City e e EXHIBIT B CONVEYANCE OF INTEREST Fc)r value received, Gulf Coast Water Authority ("GCWA") on behalf of the City of Galveston, Texas ("Galveston"), pursuant to that certain Water Capacity Purchase and Sale Agreement (the "~Sale Agreemenr), dated as of April 28, 1998, between GCWA, Galveston and La Porte Area Water AuthoritY ("LPAWA"); hereby conveys to LPAWA all of LPAWA's Interest (as defined in the Purchase and Sale Agreement) in the Southeast Plant. Capitalized terms not defined herein shall have the meanings assigned in the Purchase and Sale Agreement. LPAWA's Interest is equal to 14.286% of the production capacity (3 MGD) of Galveston's Interest in the Southeast Plant and 14.139% of the pumping capacity (3.45 MGD) of Galveston's Interest in the Southeast Plant. GULF COAST WATER AUTHORITY Dated: [TRANSFER DA TEl CITY OF GALVESTON, TEXAS Dated: [TRANSFER DA TEl ACCEPTED BY:. LA PORTE ARE)l~ WATER AUTHORITY 13 e e EXHIBIT C ESCROW AGREEMENT THIS ESC:ROW AGREEMENT (this "Escrow Agreement") is entered into as of the _ day of , 1998, by and among GULF COAST WATER AUTHORITY ("GCWA"), the CITY OF GALVESTON, TEXAS ("Galveston"), LA PORTE AREA WATER AUTHORITY ("LPAWA"), and CHASE BANK OF TEXAS, NATIONAL ASSOCIATION ("Escrow Agent"). WIINESSEIH: WHEREAS, GCWA and LPAWA have entered into that certain Water Capacity Purchase and Sa~e Agreement, dated as of April 28, 1998 (the "Sale Agreement") by which LPAWA has agreed to place in escrow with Escrow Agent the amount necessary to pay the Purchase Price in the amount of $3,412,700, such amount to be paid in installments as set forth below, for a portion of the interest of the City of Galveston, Texas in the City of Houston's Southeast Water Purification Plant; and NOW THE:REFORE, the parties agree as follows: Section 1. The Escrow Fund. LPAWA agrees to deposit with GCWA, on June 1, 1998 (the "First Payment Date"), the amount of $500,000. LPAWA a"rees to pay to the Escrow Agent for the account of GCWA on or before the Transfer Date (as defined in the Sale Agreement) the remainder of the Purchase Price (as defined in the Sail! Agreement). The Escrow Fund shall be held by Escrow Agent and shall be disbursed according to the provisions contained herein. (d) The Escrow Fund shall pe invested by Escrow Agent in. an interest-bearing account containing direct or indirect securities of the United States of America, money market funds rated "AAA" by S&P or "Aaa" by Moody's Investors Services, Inc. or fully collateralized certificates of deposit in this Esc:row Agreement as directed by LPAWA, or LPAWA's agent, in writing, with the maturity date of the investments not to exceed three (3) years from the date of this Escrow Agreement. After the third anniversary date of this Escrow Agreement, investments in the Escrow Fund shall not have a maturity longer than ninety (90) days. Except as provided belo~, the interest thus derived shall become part of the Escrow Fund until the full Purchase Price has been deposited. Except as provided below, such interest will be the property of LPAWA, even though the Escrow Fund may be paid to GCWA in accordance with this Escrow Agreement. Escrow Agent shall pay the interest earned on the investment of the Escrow Fund to LPAWA from time to time as directed by LP,AWA, so long as the value of the Escrow Fund, as determined by the Escrow Agent, is equal to the amount required by Section 1(b) to be on deposit at any time. It is 14 e e agreed by GCWA" Galveston and LPAWA that on the Transfer Date, the Escrow Fund shall contain the amourlt of $2,912,700 and if there is a deficiency in such fund, LPAWA shall pay such deficiency to the Escrow Agent for deposit in the Escrow Fund if it is to be disbursed pursuant to Section 2(c). Section 2. Disbursement of the Escrow Fund. The Escrow Agent shall disburse the Escrow Fund as follows: (a) Upon receipt of an affidavit from LPAWA, delivered on or after May 1, 2002, that GCWA and Galveston have failed to deliver to LPAWA an executed Conveyance of Interest in the form attached to the Sale Agreement as Exhibit B, Escrow Agent shall disburse the Escrow Fund to LPAWA. (b) In the event that LPAWA fails to pay the full amount due and owing on the Purchase Price to :the Escrow Agent, on or before the Transfer Date, upon receipt of a request from GCWA that the Escrow Agent disburse the funds in the Escrow Fund to GCWA pursuant to Section 2.1 (c) of the Sale Agreement, the Escrow Agent shall disburse the funds in the Escrow Fund to GCWA. (c) Upon receipt of a copy of the executed Conveyance of Interest and evidence of receipt thereof by LPAWA, the Escrow Agent shall disburse the Escrow Fund to GCWA. The Escrow Agent shall disburse any unpaid interest earned thereon to date to LPA WA. (d) GC'WA and Galveston shall give the Escrow Agent and LPAWA as least thirty (30) days' prior written notice of the Transfer Date. Section 3. The Escrow Acent's Responsibilities. (a) The Escrow Agent's sole responsibilities shall be: (i) safekeeping the Escrow Fund; (ii) investment of the Escrow Fund in accordance with LPAWA's direction; and (iii) disbursement of Escrow Fund and interest earned thereon as provided for in Sections 2(a), (b) or (c). (b) The Escrow Agent has no duty to determine or inquire into the happening or occurrence of any 19vent or contingency or the performance or failure of performance of any of GCWA, Galveston or LPAWA with respect to the Sale Agreement or any other agreement between the partiesi. The Escrow Agent may act under this Escrow Agreement upon any written instruction which the Escrow Agent believes in good faith to be geniune and what it purports to be. The Escrow Agent shall incur no liability in acting in any way in good faith in accordance with any of the provisions of this Escrow Agreement. Section 4. Bill of Interpleader. Should any disagreement occur between GCWA, Galveston and LPAWA with respect to this Escrow Agreement, or with respect to GCWA or LPAWA's right to rt~ceive the Escrow Fund or the interest earned thereon, Escrow Agent shall have the right to insititute a bill of interpleader in any court of competent jurisdiction to determine the rights of the parties. 15 e e Section 5. Term. This Escrow Agreement shall remain in full force and effect until: (i) Escrow Agent has fully complied with the provisions of Section 2(a), (b) or (c) ; or (ii) A court of competent jurisdiction has disposed of the rights and obligations of the parties pursuant to the provisions of Section 4. Section 6. Fees. LPAWA, at its sole cost and expense, shall promptly pay all escrow fees and other charges made by Escrow Agent for its service under this Escrow Agreement upon receipt of notice from Escrow Agent that such fees and charges are due. Section 7. LPAWA Representative. The Escrow Agent shall be entitled to rely upon any written reque::;t signed by the General Manager of LPAWA for any action directed by LPAWA hereunder~ Section 8 . Notice. Any notice provided for or permitted to be given under this Escrow Agreement must be in writing and may be served by depositing same in the United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested; by delivering same in person to such party; or by prepaid telegram or telex. Notice given in accordance herewith shall be effective upon receipt For the purposes of notice, the addre!sses of the parties shall be as follows: If to GCWA, to: Gordon L. Myers, General Manager Gulf Coast Water Authority 3630 Highway 1765 Texas City, Texas n591 If to Galves~ton, to: Steve LeBlanc, City Manager City of Galveston 823 Rosenberg Galveston, Texas n550 If to LPAWA, to Robert T. Herrera, General Manager L:a Porte Area Water Authority 604 W. Fairmont Parkway La Porte, Texas nS71 If to the Escrow Agent, to: Chase Bank of Texas, National Association From time to time, any party may designate another address for all purposes of this Escrow Agreement by giving to the other parties not less than five (5) days advance written notice of such change of address. Section 9. Assianment. This Escrow Agreement shall not be assignable by any party without the prior written consent of the other parties. 16 e . Section 10. Execution. This Escrow Agreement may be executed in counterparts, each of which shall be deemed to be an original. Section 11. Entire Aareement This Escrow Agreement sets forth the entire agreement betwe1en GCWA, Galveston, LPAWA and the Escrow Agent relative to the Escrow Fund and all prior or written negotiations or agreements are merged herein. EXECUTE:D as of this _ day of ,1998. GULF COAST WATER AUTHORITY By: Name: W. W. Latimer, Jr. Title: President, Board of Directors ATTEST: By: Name: John W. Kinust Title: Secretary-Treasurer 17 e ATTEST/\ By: ~~ Albert D. Fields, SecretarylTreasurer THE FOREGOINGi AGREEMENT HAS BEEN APPROVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS BY ITS ORDINANCE NO. 98- ~a.?Jtf PASSED AND APPROVED APRIL 27, 1998 CITY OF LA PORTE, TEXAS BY;~~~ rman Malone, Mayor -- DAS TO FORM: ATTEST: By: '-fY) OJdJJ.J ){.dIJ).1 Martha Gillett, City Secretary e LA PORTE AREA WATER AUTHORITY By:~ ~ ,~Jtk Jerry ml~resident 18 . ATTEST: By: ~:..c-. L.I~"""""~ Name: Barbara L:awrence Title: City Secre:tary . ~s TO FORM .-. --~~~ crr't ItTj(j~!'lEY . F:IPH06I41GCW A\SETPIPS-55-A':;.05 e CITY OF GALVESTON, TEXAS By: ~ ~~.....<- Name: Steve LeBlanc Title: City Manager -11- Vinson & Elkins LLP.: April 28, 1998 Document No. 1.13 . e By its exeQJtion hereof, Escrow Agent acknowledges receipt of the Escrow Fund and its agreement to abide by the terms hereof. "ESCROW AGENT" CHASE BANK OF TEXAS NA llONAL ASSOCIA liON By: Name: Title" 20 . e Exhibit D Debt Service Allocation Date Principal Coupon Interest Total Annual Total 1/1 0/02 118,511.25 118,511.25 7/1 0/02 215,000 6.70% 118,511.25 333,511.25 452,022.50 1/10/03 111,308.75 111,308.75 7/1 0/03 230,000 6.80% 111,308.75 341,308.75 452,617.50 1/10/04 103,488.75 103,488.75 7/10/04 ~!50,OOO 6.85% 103,488.75 353,488.75 456,977.50 1/1 0/05 94,926.25 94,926.25 7/10/05 ~!65,OOO 6.90% 94,926.25 359,926.25 454,852.50 1/10/06 85,783.75 85,783.75 7/10/06 ~!85,OOO 6.95% 85,783.75 370,783.75 456,567.50 1/10/07 75,880.00 75,880.00 7/10/07 :-105,000 6.95% 75,880.00 380,880.00 456,760.00 1/1 0/08 65,281.25 65,281.25 7/1 0/08 325,000 6.95% 65,281.25 390,281.25 455,562.50 1/1 0/09 53,987.50 53,987.50 7/10/09 ~150,000 6.95% 53,987.50 403,987.50 457,975.00 1/10/10 41,825.00 41,825.00 7/10/10 ~170,000 7.00% 41,825.00 411,825.00 453,650.00 1/1 0/11 28,875.00 28,875.00 7/10/11 400,000 7.00% 28,875.00 428,~75.00 457,750.00 1/10/12 14,875.00 14,875.00 7/10/12 ~.25,OOO 7.00% 14,875.00 439,875.00 454,750.00 3,420,000 1,589,485.00 5,009,485.00 5,009,485.00 21 e e e . REOUEST FOR CITY COUNCfL AGENDA ITt: Agenda Date Requested: April 27. 1998 Requested By: s. Gillett~ Department: Public Works XXX Report _ Resolution _ Ordinance Exhibits: Bid Tabulation and Bidder's list SUMMARY & RECOMMENDATION Sealed Bids No. 0734 - Liquid Chlorine were opened and read on April 20, 1998. Bid requests were sent to five (5) bidders, with two (2) returning bids. Liquid chlorine is used for disinfection of water and wastewater. Low bid was submitted by Dxr Industries. Using estimated yearly quantities, the annual cost would be $26,335. This represents a 9% decreas~ over the last bid two years ago. Action Required by Council: Award bid for annual contract to supply liquid chlorine to Dxr Industries for an estimated annual cost of$26,335. Availability of Funds: General Fund XX_ Water/Wastewater _ Capital Improveml~nt_ General Revenue Sharing Other Account Number: Various Funds Available: XX YES NO Approved for Citv Council A2enda ~T~ Robert T. Herrera City Manager 4 - t 1.- q f> Date e . BID TABULA TION - LIQUID CHLORINE . DXI JONES DESCRIPTION QTY INDUSTRIES CHEMICALS 1) Chlorine - One Ton Cylinders.. 70 $371.50 $391.00 TOTAL $26,005.00 $27,370.00 2) Chlorine - 150 lb. Cylinders 6 $55.00 $60.00 TOTAL $330.00 $360.00 GRAND TOTAL '$26,335.00 $27,730.00 There is a 5% difference between low bid and the other bid. BIDDER'S LIST SEALED BID #0734 - LIQUID CHLORINE LESLIE'S SWIMMING POOL SUPPLY 1183 W. NASA RD. 1 WEBSTER, TX 77'598 JONES CHEMICAL, INC. 118111-10.EAsT SUITE 222 HOUSTON, TX 77029 21ST CENTURY POOL CHEMICAL SERV 2918 DUPREE HOUSTON, TX T1054 VAN WATERS & ROGERS P.O. BOX 4579 HOUSTON, TX 77210 DXIINDUSTRIES, INC. P.O. BOX 24600 HOUSTON, TX 77229-4600 CHAMBER OF COMMERCE P.O. BOX 996 LA PORTE, TX 77:572-0996 BA YSHORE SUN PUBLISH DATES: APRIL 5TH, 1998 , APRIL 12TH, 1998 .. \ e -- R1EOUEST FOR CITY COUNCIL AGENDA ITl: Agenda Date Requested: April 27. 1998 Requested By: s. Gillett ~.# Department: Public Works XXX Report ~ Resolution _ Ordinance Exhibits: Bid Tabulation and Bidder's list SUMMARY & RECOMMENDA TTON Sealed Bids No. 0736 - Crushed Limestone were opened and read on April 20, 1998. Bid requests were sent to six (6) bidders, with two (2) returning bids and one no-bid. Crushed limestone is used in the maintenance and construction of streets, drives and parking areas. Low bid was submitted by Sunbelt Asphalt and Materials. Using estimated yearly quantities, the annual cost would be $35,250. This represents a 29% increase over the last bid two years ago. Action Required by Council: Award bid for annual contract to supply crushed limestone to Sunbelt Asphalt and Materials for an estimated annual cost of$35,250. Availability of Funds: xx General Fund~X Water/Wastewater _ Capital Improvement_ General Revenue Sharing Other Account Number: Various Funds AvaUable: XX YES NO Aooroved for City Council A2enda ~~ If...t,'l.,-q~ Robert T. Herrera Date City Manager e . BID TABULATION FLE.XIBLE BASE - CRUSHED LIMESTONE - REBII) uULt" uULF ." SUNBELT COAST . - STATES , - DESCRIPTION QTY " ASHPALT LIMESTONE MATERIALS 1) Flexible Base - Delivered 1000 $13.75 $14.53 NO BID TOTAL $13,750.00 $14,530.00 NO BID 2) Flexible Base - Picked up 2000 $10.75 $12.25 NO BID TOTAL $21,500.00 $24,500.00 NO' BID GRAND TOTAL $35,250.00 $39,030.00 NO BID BIDDER'S LIST FLEXIBLE BASE CRUSHED LIMESTONE - REBID SEALED BID #0736 GULF COAST LIMESTONE P. O. BOX 66 SEABROOK, TX '77586 GULF STATES MATERIALS P.O. BOX 1425 LA PORTE, TX 77572-1425 SOUTHWEST LIMESTONE P. O. BOX 488 ALVIN, TX 77512 WALKER SAND 11438 AVE P LA PORTE, TX 77571 VULCANIICA DISTRIBUTING CO. P. O. BOX 3008 PASADENA, TX 77501 .' SUNBEL T ASPHALT & MATERIALS P. O. BOX4Q08 HOUSTON, TX.77210-4608 BAYSHORE SUN PUBLISH DATES: APRIL 5TH, 1998 . _, . _ ' APRIL 12TH, 1998 CHAMBER OF COMMERCE P. O. BOX 996 ' LA PORTE, TX 77572-0996 e . BID TABULATION FLEXIBLE BASE - CRUSHED LIMESTONE - REEJID .... GULF "GULF SUNBELT COAST . - .' STATES DE:SCRIPTION QTY ASHPALT LIMESTONE MATERIALS 1) Flexible Elase - Delivered 1000 $13.75 $14.53 NO BID TOTAL $13,750.00 $14,530.00 NO BID 2) Flexible 8ase - Picked up 2000 $10.75 $12.25 NO BID TOTAL $21,500.00 $24,500.00 NO BID ; GRAND TOTAL $35,250.00 $39,030.00 NO BID There is a 10% difference between low bid and the next bid. BIDDER'S LIST FLEXIBLE BASE CRUSHED LIMESTONE - REBID " SEALED BID #0736 GULF COAST LIMESTONE P. O. BOX 66 SEABROOK, TX 77586 GULF STATES MATERIALS P.O. BOX 1425 LA PORTE; TX 77572-1425 SOUTHWEST LIMESTONE P. O. BOX 48~ ALVIN, TX, 77512, WALKER SAND 11438 AVE P LA PORTE, TX 77571 VULCAN/ICA DISTRIBUTING CO. P..O. BOX 3008 PASADENA, TX '77501 . SUNBEL T ASPHALT & MATERIALS P. O. BOX 4608 HOUSTON, TX 77210-4608 BA YSHORE SUN PUBLISH DATES: APRIL 5TH, 1998 . '.. . APRIL 12TH, 1998 CHAMBER OF COMMERCE P. O. BOX 996 . LA .PORTE, TX 77572-0996 " \ .... e . . e REOUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 27. 1998 Requested By: s. Gillett ~ Department: Public Works XXX Report _ Resolution _ Ordinance Exhibits: Bid Tabulation and Bidder's list SUMMARY & RECOMMENDA TJON Sealed Bids No. 0737 -- Fly Ash Stabilized Calcium Sulfate (GS200S) were opened and read on April 20, 1998. Bid requests welre sent to two (2) bidders, with one (1) returning a bid. Fly ash stabilized calcium sulfate is used in the maintenance and construction of streets, drives and parking areas. Low bid was submitted hy Gulf States Materials. Using estimated yearly quantities, the annual cost would be $32,975. This represents a 12% increase over last year's contract. Action Required by Council: Award bid for annual contract to supply fly ash stabilized calcium sulfate (GS200S) to Gulf States Materials fbr an estimated annual cost of$32,975. A vailabiJity of Funds: xx General Fund~X WaterlWastewater _ Capital Improvemlent_ General Revenue Sharing Other Account Number: Valious Funds Available: XX YES NO Aooroved for City Coulllcil Ae:enda ~~ T. \~~ l.{-'t'l.-'tt Robert T. Herrera Date City Manager loOi._. .~ ~ e -- BID TABULA TION - FL Y ASH STABILIZED CALCIUM SULFA TE GS-200S - REBID GULF STATES DESCRIPTION QTY ," MATERIALS . . 1) GS-200S - Picked up 2500 $8.85 TOTAL $22,125.00 2) GS-200S - Delivered 1000 $10.85 TOTAL $10,850.00 GRAND TOTAL $32,975.00 BIDDER'S LIST FLY ASH STABILIZED CALCIUM SULFATE (GS200) SEALED BID #0730 BEDROCK MATERIALS INC PO BOX 1817 CHANNELVIEW TX 77530 GULF STATES MATERIALS 555 SENS ROAD LA PORTE TX 77571 CHAMBER OF COMMERCE P.O. BOX 996 LA PORTE, TX 7757.2-0996 SA YSHORE SUN PUBLISH DATES: FEBRUARY 15,1998 FEBRUARY 22, 1998 . . . if !-2- 1/ q~ HAIVOo~ "Pt?om SpUD Po (YIO I\J 0 . * 34-136 LA :PORTE CODE Sec. 34-136. Same-Inspection division to handle payments and issue receipts. All payments of money by and collections of money from property owners for the purpose of paying the city for expenses in cutting weeds, or abating other nuisances pursuant to the provisions of this article shall be handled by the inspection division, and a proper receipt issued therefor. Such receipts and the necessary records in connection therewith shall be prepared and handled and maintained as a permanent record, and such sums of money shall be handled in the form and manner prescribed by the director of finance. (Code 1970, ,~ 73-31) ... Sees. 34-137-34-165. Reserved. ARTICLE v: JUNKED MOTOR VEHICLES. Sec. 34-166. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Antique ve'hicle means a passenger car or truck that is at least 35 years old. Demolisher means any person whose business is to convert a motor vehicle into processed scrap or scrap metal, or otherwise to wreck or dismantle motor vehicles. Junked vehicle means an)' ~ptor vehicle as defined in V.T.C.A., Transportation Code * 501.002 that is self-propelled and which: (1) Is inoperative; and (2) Doell not have lawfully affixed to it an unexpired license plate or valid motor vehicle safe~y inspection certificate; is wrecked, dismantled, partially dismantled or discarded; or remains inoperable for a continuous period of more. than 45 days. Motor vehicle collector means a person who: (1) Owns one or more antique or speci~l ~nterest vehicles; and (2) Acquires, collects, or disposes of an antique or special interest vehicle or part.of an antiql,le or special interE!!3t vehicle for personal use to restore and preserve an antique or spElcial interest vehicl~ for his~o.ric interest. Special iT!-t~rest vehicle meaf)~ a moto/vehicle of any age that hfls not peen cha~ged from original manufacturer's specifications and, l:iecause of its historic interest,: is oeing preserved by a hobbyist. (Code 1970, * 13-41) Cross refE!rence-Definitions generally, * 1-2. State law' reference-Similar provisions, V.T.C.A., Transportation Code ** 683.071, 683.077(b). .Cross ref'crcnces--.Junk dmtlers, * 22-:.351. ct ~cq.; solid waste, eh. 58; traffic and Vflhicles, ch.70. State law references-Abandoned motor vehicles, V.T.CA, Transportation Code * 683.001 et seq.; junked motor vehicles, V.T.C.A., Transportation Code * 683.071 et seq. CD34: 12