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Charlie Perry - 127 N. 4`~' Street -thanked City Council for allowing him the opportunity to serve on the Northside Community Neighborhood Plan Committee and encouraged Council to adopt the resolution approving the Northside Community Neighborhood Plan. PRESENTATIONS A. Mayor Malone and Police Chief Reff presented Detective Gary Keene with the Employee of the Quarter Award. B. Mayor Malone and Director of Finance Cynthia Alexander presented Kathy Hutton with a retirement gift and thanked her for her many years of service to the City of La Porte. C. Mayor Malone, Joe Sease and Kay Fox presented Tammy Kannarr with the Employee of the Year Award. 6. Council received a report on various outstanding purchase orders and provided Director of Finance Cynthia Alexander with direction on budget amendments. Motion was made by Councilperson Engelken to amend various operation budgets for outstanding_purchase orders. Second by Councilperson Ebow. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young Clarke and Malone. Nays: None Abstain: None 7. Council considered approving a resolution amending the investment policy. Director of Finance Cynthia Alexander presented summary and recommendation and answered Council's questions. City Attorney read: RESOLUTION 2000-16 - A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, ADOPTING AN INVESTMENT POLICY CONFORMING TO ALL STATUTES GOVERNING INVESTMENT OF THE CITY OF LA PORTE'S FUNDS, INCLUDING, BUT NOT BY WAY OF LIMITATION, THE PUBLIC FUNDS INVESTMENT ACT, CHAPTER 2256, TEXAS GOVERNMENT CODE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR AN EFFECTNE DATE. Motion was made by Councilperson Sutherland to approve Resolution 2000-16 as presented by Ms. Alexander. Second by Councilperson Ebow. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None • Page 3 -Minutes -Council Meeting 11/13/00 8. Council considered approving a resolution adopting the Northside Community Neighborhood Plan, upon recommendation of the Northside Neighborhood Plan Steering Committee, and consultants Hawes, Hill & Patterson, L.L.P. Assistant City Manager John Joerns presented summary and recommendation and answered Council's questions. City Attorney read: RESOLUTION 2000-17 - A RESOLUTION, ADOPTING THE NORTHSIDE COMMUNITY NEIGHBORHOOD PLAN, UPON RECOMMENDATION OF THE NORTHSIDE NEIGHBORHOOD PLAN STEERING COMMITTEE, AND CONSULTANTS HAWES, HILL & PATTERSON, L.L.P.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR AN EFFECTIVE DATE. Motion was made bXCouncilperson Gay to approve Resolution 2000-17 as presented by Mr. Joerns. Second by Councilperson Clarke. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 9. Council considered approving ordinances authorizing the execution by the City of La Porte Industrial District Agreements as outlined below for the term commencing January 1, 2001, and ending December 31, 2007. 2000-IDA-42 Greif Bros. Corporation 2000-IDA-43 Linde Gas Inc. Assistant City Manager John Joerns presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-IDA-(see below for ordinance numbers) - AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH GREIF BROS. CORPORATION, FOR THE TERM COMMENCING JANUARY 1, 2001, And ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTNE DATE. 2000-IDA-42 Greif Bros. Corporation 2000-IDA-43 Linde Gas Inc. Motion was made by Councilperson Engelken to approve Ordinance 2000-IDA-(see below for ordinance numbers as presented by Mr. Joerns. Second by Councilperson Griffiths. The motion carried. Ayes: Sutherland, Engelken, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None • Page 4 -Minutes -Council Meeting 11-13-00 Abstain: Ebow 10. Council considered approving two ordinances authorizing the City of La Porte to execute the following agreements with GSL Investments, Inc. A. An Industrial District Agreement with GSL Investments, Inc. B. A Water Service Agreement with GSL Investments, Inc. The agenda had a typo in section A. It should have read agreement with GSL Investments to be consistent with the agenda caption for that item. Director of Planning Doug Kneupper presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-IDA-44 - AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH GSL INVESTMENTS, INC., FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR AN EFFECTIVE DATE HEREOF. City Attorney read: ORDINANCE 2000-2447 - AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND GSL INVESTMENTS, INC.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Young t~pprove Ordinances 2000-IDA-44 and 2000-2447 as presented by Mr. Kneupper. Second by Councilperson Porter. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None. 11. Council considered approving two ordinances authorizing the City of La Porte to execute the following agreements with TCP/GSL Industrial Partners, L.P. A. An Industrial District Agreement with TCP/GSL Industrial Partners. L.P. B. A Water Service Agreement with TCP/GSL Industrial Partners. L.P. Director of Planning Doug Kneupper presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-IDA-45 - AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH TCP/GSL INDUSTRIAL PARTNERS, L.P., FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; • Page 5 -Minutes -Council Meeting 11-13-00 FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR AN EFFECTIVE DATE HEREOF. City Attorney read: ORDINANCE 2000-2448 - AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND TCP/GSL INDUSTRIAL PARTNERS, L.P.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Porter to approve Ordinances 2000-IDA-45 and 2000-2448 as presented by Mr. Kneupper. Second by Councilperson Griffiths. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 12. Council considered approving an ordinance adding a member to the Board of Directors of Reinvestment Zone Number One. City Attorney Knox Askins presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-2449 - AN ORDINANCE APPOINTING A MEMBER TO THE BOARD DIRECTORS FOR THE CITY OF LA PORTE REINVESTMENT ZONE NUMBER ONE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTNE DATE. Motion was made by Councilperson Porter to approve Ordinance 2000-2449 appointing Norman Cook to Position 5 on the Board of Directors of City of La Porte Reinvestment Zone Number One, as presented by Mr. Askins. Second by Councilperson Gay . The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 13. Council considered authorizing an agreement between the City of La Porte and the law firm of John M. O'Quinn and Associates, L.L.P. City Attorney Knox Askins presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-2450 - AN ORDINANCE AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE LAW FIRM OF JOHN O'QUINN AND ASSOCIATES, L.L.P.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTNE DATE. • • Page 6 -Minutes -Council Meeting 11-13-00 Motion was made by Counci~erson Ebow to approve Ordinance 2000-2450 as presented by Mr. Askins. Second by Councilperson Young. The motion carried. Ayes: Sutherland, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: Engelken Mr. Engelken left the table during this item. 14. Council considered authorizing an interlocal agreement for joint elections, among the City of La Porte, La Porte Independent School District, and San Jacinto College District. City Secretary Martha Gillett presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-2451 - AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT FOR JOINT ELECTIONS, AMONG THE CITY OF LA PORTE, LA PORTE INDEPENDENT SCHOOL DISTRICT, AND SAN JACINTO COLLEGE DISTRICT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. Motion was made by Counci~erson Engelken to approve the expenditure as presented by Ms. Gillett. Second by Councilperson Gay. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 15. Council considered authorizing a contract between the City of La Porte and Pfeiffer and Son, Inc. for the Northside Park ball field replacement of light poles, electrical wiring, and associated fixtures. Director of Planning Doug Kneupper presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-2452 - AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND PFEIFFER & SON, INC. FOR THE NORTH SIDE PARK BALL FIELD REPLACEMENT OF LIGHT POLES, ELECTRICAL WIRING, AND ASSOCIATED FIXTURES; APPROPRIATING $41,300.00 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. Motion was made by Councilperson Griffiths to approve the expenditure as presented by Mr. Kneupper. Second by Councilperson Young. The motion carried. Page 7 -Minutes -Council Meeting 11-13-00 Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 16. Council considered authorizing a contract between the City of La Porte and Derk Harmson Construction Co., Inc. for the Northside Basketball Pavilion structural repairs and painting. Director of Planning Doug Kneupper presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-2453 - AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND DERK HARMSEN CONSTRUCTION CO., INC. FOR THE NORTH SIDE PARK BASKETBALL PAVILION STRUCTURAL REPAIRS AND PAINTING; APPROPRIATING $44,921.00 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. Motion was made by Councilperson Ebow to approve the expenditure as presented by Mr. Kneupper. Second by Councilperson Young. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 17. Council considered authorizing the City Manager to execute an agreement with Claunch and Miller, Inc. to provide professional engineering services for waterline replacement and sanitary sewer rehabilitation. Director of Public Works Steve Gillett presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-2454 - AN ORDINANCE APPROVING AND AUTHORIZING AN ENGINEERING AGREEMENT BETWEEN THE CITY OF LA PORTE AND CLAUNCH & MILLER, INC., FOR PROFESSIONAL ENGINEERING SERVICES FOR WATERLINE REPLACEMENT AND SANITARY SEWER REHABILITATION; APPROPRIATING NOT TO EXCEED $96,565.00 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. Motion was made by Councilperson Clarke to approve Ordinance 2000-2454 as presented by Mr. Gillett. Second by Councilperson Gay. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None ! ~! Page 8 -Minutes -Council Meeting 11-13-00 18. Council considered authorizing an extension of the water service agreement between the City of La Porte and Akzo Nobel chemicals Inc., for a term beginning June 12, 2000 and expiring December 31, 2007. Director of Public Works Steve Gillett presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-2555 - AN ORDINANCE APPROVING AND AUTHORIZING AN EXTENSION OF THE WATER SEWER AGREEMENT BETWEEN THE CITY OF LA PORTE AND AKZO NOBEL CHEMICALS INC., FOR A TERM BEGINNING JUNE 12, 2000, AND EXPIRING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. Motion was made by Councilperson Clarke to approve Ordinance 2000-2555 as presented b~Mr. Gillett. Second by Councilperson Ebow. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 19. Council considered amending 1875, an ordinance authorizing and allowing, under the act governing the Texas Municipal Retirement System, "Updating Service Credits" in said system. Director of Administrative Service Louis Rigby presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2000-1875-H - AN ORDINANCE AMENDING ORDINANCE 1875, AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATING SERVICE CREDITS" IN SAID SYSTEM FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM WHO PRESENTLY ARE IN THE EMPLOYMENT OF THE CITY OF LA PORTE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE. Motion was made by Councilperson Engelken to approve 2000-1875-H as presented by Mr. Ri~by. Second by Councilperson Griffiths. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 20. Council considered authorizing the City Manager or his designee, to approve an agreement with Advance PCS to provide a Pharmacy Benefit Management Program for the City. ~ ~ Page 9 -Minutes -Council Meeting 11-13-00 Director of Administrative Services Louis Rigby presented summary and recommendation and answered Council's questions. Motion was made by Councilperson Gay to approve the expenditure as presented by Mr. Ri~by• Second by Councilperson Engelken. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 21. Council considered ratifying decision of City Manager for the purchase and installation of 3,643 feet of six foot chain link fence at the golf course to astro fence. City Manager Robert T. Herrera presented summary and recommendation and answered Council's questions. Motion was made by Councilperson Porter to approve the expenditure as presented by Mr. Herrera. Second by Councilperson Engelken. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 22. Council considered approving expenditure in the amount requested from grant funds for Panasonic lap top program for police vehicles. Police Chief Richard Reff presented summary and recommendation and answered Council's questions. Motion was made by Councilperson Porter to approve the expenditure as presented by Chief Reff. Second by Councilperson Young. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 23. Council considered awarding bid for purchase of 160,000 pounds of plastic garbage bags to Dyna-Pak Corporation, low bidder meeting specifications. Councilperson Clarke made a motion to approve the bid as presented. Second by Councilperson Ebow. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone. Nays: None Abstain: None 24. The special called workshop meeting was called to order by Mayor Malone at 7:47 PM. Council discussed redistricting policies and procedures. • • Page 10 -Minutes -November 13, 2000 Council Meeting Council directed staff to bring an Ordinance for approval to the first meeting in December. Council recommended Peter Griffiths and Deotis Gay submit alternate members to the Re-districting committee in order to have sufficient minority representation. Mr. Herrera suggested Council look at recent demographics make-up of the City and consider the data prior to approving ordinance. 25. Workshop adjourned and the regular meeting re-convened at 8:44 PM. 26. ADMINISTRATIVE REPORTS City Manager Robert T. Herrera reminded Council of the following events: A. TRAFFIC HUMP REQUESTS -NOVEMBER 14, 2000 B. THANKSGIVING HOLIDAY - NOVEMEBER 23 AND 24, 2000 C. ANNUAL TREE LIGHTING CEREMONY -NOVEMBER 30, 2000 27. COUNCIL ACTION Councilpersons Sutherland, Engelken, Ebow, Griffiths, Porter, Gay, Young, Clarke, and Malone brought items to Council's attention. 28. EXECUTIVE SESSION -PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, AND 551.084, TEXAS GOVERNMENT CODE, - (CONSULTATION WITH ATTORNEY, DELIBERATION REGARDING REAL PROPERTY, DELIBERATION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, CONFERENCE WITH EMPLOYEES DELIBERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION) 29. CONSIDERATION AND POSSIBLE ACTION ON ITEMS CONSIDERED IN EXECUTIVE SESSION Due to no Executive Session there was no action taken. 30. ADJOURNMENT There being no further business to come before Council, the Regular Meeting was duly adjourned at 8:57 PM. Respectfully submitted, ~,/~ v~ Martha Gillett City Secretary Passed and approved on this 27t day of November 2000. G~~2y~ (~ N an Malone, Ma r ----------- Requested By: REQUEST FOR CITY COUNCIL AGENDA ITEM ) 11 rJ } 00 I David Gunter ~ Apnronriation Agenda Date Requested: Source of Funds: Department: Account Number: VARIOUS Report: X Resolution: Ordinance: Amount Budgeted: Exhibits: None Amount Requested: Exhibits: Budgeted Item: !yEsl NO Exhibits: SUMMARY & RECOMMENDATION The City of La Porte's fiscal year ended September 30, 2000, and there were 25 outstanding purchase orders. The purchase orders represent goods that were ordered and budgeted funds that were committed to procure items necessary to operate the City . We need to re-establish these items for the new fiscal year. This action will have no effect on the working capital of the various funds. A breakdown of the "open" purchase orders by fund is as follows: Fund Number Amount General Fund 18 $ 247,315.00 Utility Fund 5 $ 2,657.00 Golf Course Fund 2 $ 33.916.00 Total 25 $ 283,888.00 Action Reauired bv Council: We are requesting that City Council instruct the Director of Finance to amend the various operating budgets for outstanding purchase orders. Aooroved for City Council Al!enda G~ ,. t\~ Robert T. Herrera, City Manager ~\-\~oC> Date E-;OQJ cc::"'l:! Ol:l:::<:Il= ~~.a := ga ~ ~ ~ cc::~~< ~~~~ ~O~ Q.,...;l~ :s...;l~ ~~~ O~l:l::: ~u_ hZ~ t5~~ ~U ;J~ uk.; Z~ ~E::: ~ k. ~ f'.1 := Q i. ... l.< ~ ~ '" '" ...... Q) Q) ...... "S a 0.. g 6 b 0 '" u """' 0.. ~ B~ >< 0.. Q) oC;; t: ~ 0 4-tQ.)~~ o 6 c: Q) C:Q)~~ :E ~ 0 ~ -0 0.. ~ Q) 0:::...... '" ~':o~......8 o ~~ ~ E ~ I... Q) d) < ~ d CI) o~ t5 Q) .::: -- ~ u C,,) J: ~ ~ 0 S '5 - ~~uO::ii:~ o o N ~ C') ..q: 00 00 - ~ r-- lI) lI) '" '0 ...... ;::l ~ o .S" c: ~ .g 2 'a U ;::l ...... 6 <2 6 "'-< ~-cn en 8 o..~ o ~ c/.i~ '" 0........ 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Alexander Source of Funds: Department: Finance Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Investment Policv Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The City Council of the City of La Porte originally adopted an Investment Policy on January 13, 1992, by Ordinance No. 1802. The Governmental Accounting Standard's Board (GASB) Pronouncement 31 requires that a City must present the Investment Policy to Council annually. On September 11, 2000, the Finance Department presented the Investment Report to the Audit Committee. A few changes have been made to the Investment Policy, which are briefly outlined below. · Training - The policy now lists organizations that may provide investment training. · Length ofInvestments - Maximum stated maturity of any individual investment is 5 years; Dollar- weighted average maturity of entire portfolio cannot exceed two (2) years. · Wording of Authorized Investments has been updated using GASB 31 language. · Competitive bidding from three (3) sources for new security issues is not required under the updated policy. (New issues are offered at par value; therefore, the price will be the same from each broker) A few exhibits, which are listed below, have also been attached to the policy. · Approved Broker/Dealer List · A copy of the Certification Form required to be signed by brokers prior to engaging in business with the City. . Strategy Statement Action Required bv Council: Recommend that the Council approve the amended Investment Policy. Approved for Citv Council A2enda Q~"T. \\-~C- Robert T. Herrera, City Manager \ \...., -00 Date '-'-_.~--~~.-........._~".."_.............................,,,-,......--.-~--~--- RESOLUTION NO. 2000-JJt. A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, ADOPTING AN INVESTMENT POLICY CONFORMING TO ALL STATUTES GOVERNING INVESTMENT OF THE CITY OF LA PORTE'S FUNDS, INCLUDING, BUT NOT BY WAY OF LIMITATION, THE PUBLIC FUNDS INVESTMENT ACT, CHAPTER 2256, TEXAS GOVERNMENT CODE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND SETTING AN EFFECTIVE DATE THEREOF. WHEREAS, the City of La Porte requires that funds be invested in a manner which will preserve the principal of funds invested while meeting daily cash flow demands of the City; and WHEREAS, the Public Funds Investment Act requires the adoption of certain investment policies and controls regarding the investment of its funds; and WHEREAS, the Public Funds Investment Act further requires that the governing body of an investing entity shall adopt a written investment policy by resolution, and shall further state that it has reviewed the investment policy and investment strategies adopted, and that the written policy adopted shall record any changes made to either the investment policy or investment strategies previously adopted; and WHEREAS, the City will endeavor to earn a return on funds invested at the highest return possible after taking into account the primary goals of preservation of liquidity of funds invested, consistent with the City's Investment Policy; NOW, THEREFORE, BE IT RESOLVED BY THE CITIY COUNCIL OF THE CITY OF LA PORTE, THAT: SECTION 1. The findings and recitations set out in the preamble to this Resolution are found to be true and correct and that they are hereby adopted by the City Council of the City of La Porte and made a part hereof for all purposes. SECTION 2. The City of La Porte hereby designates the attached policy titled, City of La Porte, Texas Investment Policy, as an official policy of the City of La Porte and that it is hereby adopted by the City of La Porte and made a part hereof for all purposes. SECTION 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at 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 Resolution 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. 9..000- It, INTRODUCED, READ and PASSED by the aff~ive vote qf,a rtIajority of the City Council of the City of La Porte, Texas, on this the day of tJDU ,2000. ~~~~~ NO . MAN L. MALONE, Mayor 1!J. {)..UAtL ,j1,,11iJ}- Mart a Gillett, City Secretary City of La Porte, Texas Investment Policy ted by the City C City of La Porte, Texas Cynthia B. Alexander Director of Finance . Shelley Hart Investment Officer I. POLICY It is the policy of the City of La Porte, Texas (the "City") to administer and invest its funds in a manner which will preserve the principal and maintain the liquidity though limitations and diversification while meeting the daily cash flow requirements of the City. The City will conform to all statues governing the investment of the City's funds, including, but not by way of limitation, the Public Funds Investment Act, Chapter 2256, Texas Government Code (the "Act"). II. SCOPE The City will strive to earn a return on funds invested at the highest investment return possible after taking in consideration the primary goals of preservation of principal and liquidity of funds invested, consistent with the policy objectives described below. This investment policy applies to the investment activities of the government of the City of La Porte, Texas. FUNDS INCLUDED All financial assets of all funds managed by the City, including but not limited to receipts of Tax Revenues, Charges for Services, Bond Proceeds, Interest Incomes, Loans and Funds received by the City where the City performs a custodial function. III. OBJECTIVES SAFETY The primary objective of the City's investment activity is the preservation of capital in the overall portfolio. Each investment transaction shall seek first to ensure that capital losses are avoided, whether they are from securities defaults or erosion of market value. LIQUIDITY The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. YIELD The City's cash management portfolio shall be designed with the objective of regularly exceeding the average rate of return on the three month U.S. Treasury Bill. The investment program shall seek to augment returns above this threshold consistent with risk limitations identified herein and prudent investment principles. RISK OF LOSS All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment Officials shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. IV. OVERSIGHT RESPONSIBILITY Oversight Responsibility for the investment activity of the City of La Porte shall rest with the Audit Committee and the City Manager. -----~"---~._~~___.._____,.,'",'_.,..~._..'.h.. V. RESPONSIBILITY AND CONTROL DELEGA nON Management responsibility for the investment program is hereby delegated to the Director of Finance, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. SUBORDINATES All persons involved in investment activities will be referred to as "Investment Officials." No person shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance. The Director of Finance shall be responsible for all transactions undertaken, and shall establish a system of controls to regulate the activities of Subordinate Investment Officials. OUARTERL Y REPORTS The Director of Finance shall submit quarterly an investment report that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed in the most recent quarter, describe the portfolio in terms of investment securities, maturities, risk characteristics, book values, market values and other features. The report shall explain the quarter's total investment return and compare the return to budgetary expectations. The report shall include an appendix that discloses all transactions during the quarter. ANNUAL REPORTS Within 90 days of the end of the fiscal year, the Director of Finance shall present a comprehensive annual report on the investment program and investment activity. The annual report shall include twelve-month and quarterly comparison of returns, and shall suggest improvements that might be made in the investment program. PRUDENCE Investments shall be made with the exercise of due care, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable safety of their own capital as well as the probable income to be derived. Investment Officials acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. CONFLICTS OF INTEREST Officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. DISCLOSURE Employees and Investment Officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business with the City of La Porte, and shall further disclose any large financial or investment positions that could be related to the performance of the City's portfolio. Employees and Investment Officials shall subordinate their personal investment transactions to those of this jurisdiction, particularly with regard to the timing of purchases and sales. TRAINING Investment Officials shall attend at least one investment training session within 12 months after taking office or assuming duties, and shall attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities from an independent source approved by the audit committee. For the purposes of this policy, an "independent source" is defined as a professional organization, an institute of higher learning or any other sponsor other than a Business Organization with whom the City may engage in investment transactions. Independent sources that may provide investment training include the Government Treasurer's Organization of Texas, the University of North Texas, the Government Finance Officers Association of Texas, or the Texas Municipal League. Training shall be in accordance with the Public Funds Investment Act and shall include education in investment controls, security risks, market risks, and compliance with statutes governing the investment of public funds. VI. INVESTMENTS ACTNE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive portfolio management philosophy. That is, securities may be sold before they mature ifmarket conditions present an opportunity for the City to benefit from the trade. ELIGIBLE INVESTMENTS Assets of funds of the government of the City of La Porte may be invested in the following as authorized by the Public Funds Investment Act: A. Obligations of, or Guaranteed by Governmental Entities 1. Except as provided by Subsection 2, the following are authorized investments under this section: a) obligations of the United States or its agencies and instrumentalities; b) direct obligations of this state or its agencies and instrumentalities; c) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; d) other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities; and e) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent. 2. The following are not authorized investments under this section: a) obligations whose payment represents the coupon payment on the outstanding principal balance of the underlying mortgage-backed security collateral and pays not principal (Interest only bonded); b) obligations whose payment represents the principal stream of cash from the underlying mortgage-backed security collateral and pays no interest (Principal only bonds); c) collateralized mortgage obligations that have a final stated maturity date of greater that 10 years; and d) collateralized mortgage obligations, the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. B. Certificate of Deposit and Share Certificates 1. A certificate of deposit is an authorized investment under this Subsection if the certificate is issued by a state or national bank domiciled in this state, a savings bank domiciled in this state, or a state or federal credit union domiciled in this state and is: a) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; b) secured by obligations that are described by Subsection A, 1, including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by Subsection A, 2; or c) secured in any other manner and amount provided by law for deposits of the investing entity. C. Repurchase Agreements 1. A fully collateralized repurchase agreement is an authorized investment under this Subsection if the repurchase agreement: a) has a defined termination date; b) is secured by obligations described by Subsection A,I, a); and c) requires the securities being purchased by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and d) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. 2. In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described by Subsection A, I,a), at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. 3. Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. 4. Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature no later than the expiration date stated in the reverse security repurchase agreement. -_._-----,--~~~.......,.....,....',....- D. Banker's Acceptances I. A banker's acceptance is an authorized investment under this subchapter if the banker's acceptance: a) has a stated maturity of270 days or fewer from the date of its issuance; b) will be, in accordance with its terms, liquidated in full at maturity; c) is eligible for collateral for borrowing from a Federal Reserve Bank; and d) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less that A-lor P-I or an equivalent rating by at least one nationally recognized credit rating agency. E. Commercial Paper I. Commercial paper is an authorized investment under this subchapter if the commercial paper; a) has a stated maturity of270 days or fewer from the date of its issuance; and b) is rated not less than A-lor P-I or an equivalent rating by at least; c) two nationally recognized credit rating agencies; or d) one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. F. Mutual Funds I. A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund: a) is registered with and regulated by the Securities and Exchange Commission; b) provides the investing entity with a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 80a-1 et seq.); c) has a dollar-weighted average stated maturity of 90 days or fewer; and d) includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. 2. In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection I, a no-load mutual fund is an authorized investment under this Section if the mutual fund: a) is registered with the Securities and Exchange Commission; b) has an average weighted maturity of less than two years; c) is invested exclusively in obligations approved by this subchapter; d) is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or it equivalent; and e) conforms to the requirements set forth in Sections G, 2 and 3 relating to the eligibility of investment pools to receive and invest funds of investing entities. 3. An entity is not authorized by this section to: a) invest in the aggregate more than 80 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in money market mutual funds described in Subsection F, 1 or mutual funds described in Subsection 2, either separately or collectively; b) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves in other funds held for debt service, in mutual funds described in Subsection 2; c) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection 2; or d) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in anyone mutual fund described in Subsection I or 2 in an amount that exceeds 10 percent of the total assets of the mutual fund. G. Investment Pools 1. An entity may invest its funds and funds under its control through an eligible investment pool if the governing body of the entity by rule, order, ordinance, or resolution, as appropriate, authorizes investment in the particular pool. An investment pool shall invest the funds it receives from entities in authorized investments permitted by this subchapter. 2. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: a) the types of investments in which money is allowed to be invested; b) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; c) the maximum stated maturity date any investment security within the portfolio has; d) the objectives of the pool; e) the size of the pool; f) the names of the members of the advisory board of the pool and the dates their terms expIre; g) the custodian bank that will safe keep the pool's assets; h) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; i) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; j) the name and address of the independent auditor of the pool; k) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and 1) the performance history of the pool, including yield average dollar-weighted maturities, and expense ratios. 3. To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity: a) investment transaction confirmations; and b) a monthly report that contains, at a minimum, the following information: 1. the types and percentage breakdown of securities in which the pool is invested; 11. the current average dollar-weighted maturity, based on the stated maturity date, of the pool; 111. the current percentage of the pool's portfolio in investments that have stated maturities of more than one year; IV. the book value versus the market value of the pool's portfolio, using the amortized cost valuation; v. the size of the pool; VI. the number of participants in the pool; V11. the custodian bank that is safekeeping the assets of the pool; V111' a listing of daily transaction activity of the entity participating in the pool; IX. the yield and expense ratio of the pool; x. the portfolio managers of the pool; and Xl. any changes or addenda to the offering circular. 4. An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. 5. In this section, "yield" shall be calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the Federal Securities and Exchange Commission. 6. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool created to function as a money market mutual fund must mark its portfolio to market daily, and, to the extent reasonably possible, stabilize a $1 net asset value. If the ratio of the market value of the portfolio divided by the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the ratio between 0.995 and 1.005. 7. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool must have an advisory board composed: a) equally of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for a public funds investment pool created under Chapter 791 and managed by a state agency; or b) of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for other investment pools. 8. To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must be continuously rated no lower that AAA or AAA- m or at an equivalent rating by at least one nationally recognized rating service. EXISTING INVESTMENTS Any investments currently held that do not meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. If the investment cannot be liquidated because of material adverse change in the value since the time of purchase, and holding the investment to maturity does not negatively affect disbursements or cash flow, a recommendation of holding said investment to maturity is acceptable. PROCUREMENT Investments of subsections A-G of this section, excluding new issues, may be made only after competitive bids are solicited from at least three sources. MONITORING The market value of each investment shall be obtained monthly from a source such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service and reported on the monthly investment reports. LENGTH OF INVESTMENTS The maximum stated maturity, from the date of purchase, for any individual investment may not exceed 5 years and the maximum dollar-weighted average maturity for the pooled fund group (investment portfolio) may not exceed 2 years. DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment portfolios. Assets held in the common investment portfolio shall be diversified to eliminate the risk of loss resulting from one concentration of assets in a specific maturity, a specific issuer or a specific class of securities. Diversification strategies shall be determined and revised periodically by the Audit Committee. In establishing specific diversification strategies, the following general policies and constraints shall apply: A. Portfolio maturities shall be staggered in a way that protects interest income from the volatility of interest rates and that avoids undue concentration of assets in a specific maturity sector. Securities shall be selected which provide for stability of income and reasonable liquidity. B. The Audit Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in securities other than repurchase agreements, Treasury bill and notes, or insured and collateralized certificates of deposits. The Audit Committee shall conduct a semi-annual review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. VII. SELECTION OF BANKS AND DEALERS BIDDING PROCESS Depositories shall be selected through the City's banking services procurement process, which shall include a formal request for proposal (RFP) issued every two (2) years. In selecting depositories, the credit worthiness of institutions shall be considered, and the Director of Finance shall conduct a comprehensive review of prospective depositories credit characteristics and financial history. INSURABILITY Banks and Savings & Loans Associations seeking to establish eligibility for the City's competitive certificate of deposit purchase program, shall submit financial statements, evidence of Federal insurance and other information as required by the Director of Finance. PRIMARY DEALERS AND APPROVED LIST For brokers and dealers of government securities, Investment Officials shall select only those dealers reporting to the Market Reports Division of the Federal Reserve Bank of New York, also known as "primary government securities dealers," unless a comprehensive credit and capitalization analysis reveals that other firms are adequately financed to conduct public business. Before engaging in investment transactions with a broker/dealer, the Investment Official shall have received, from a Qualified Representative of said firm, a signed Certification Form. (Exhibit B) This form shall attest that the individual responsible for the City's account with that firm has reviewed the City's Investment Policy and that the brokerage firm has implemented reasonable procedures and controls in an attempt to preclude imprudent activities arising out of investment transactions conducted between the City and the brokerage firm. The audit committee shall at least annually review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. (Exhibit A) VIII. SAFEKEEPING AND CUSTODY INSURANCE OR COLLATERAL All bank deposits, certificates of deposit, and repurchase agreements shall be secured by pledged collateral. Bank deposits and certificates of deposit shall be collateralized with a market value equal to no less that 100% of the deposits plus accrued interest less than an amount insured by FDIC. Repurchase agreements shall be monitored daily. Evidence of the pledged collateral shall be maintained by the Director of Finance or a third party financial institution. Repurchase agreements shall be documented by specific agreement noting the collateral pledged in each agreement. Collateral shall be reviewed monthly to assure the market value of the securities pledged equals or exceeds the related bank balances. SAFEKEEPING AGREEMENT All safekeeping arrangements shall be in accordance with a Safekeeping Agreement approved by the Audit Committee which clearly defines the procedural steps for gaining access to the collateral should the City of La Porte determine that the City's funds are in jeopardy. The safekeeping institution, or Trustee, shall be the Federal Reserve Bank or an institution not affiliated with the firm pledging the collateral. The safekeeping agreement shall include the signatures of the City of La Porte, the firm pledging the collateral, and the Trustee. COLLATERAL DEFINED The City of La Porte shall accept only the following securities as collateral: A. FDIC and FSLIC insurance coverage; B. United States Treasuries and Agencies; C. Texas State, City, County, School or Road District bonds with a remaining maturity often (10) years or less with rating from a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; D. Other securities as approved by the Audit Committee. SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of Finance or the City's independent auditors. DELIVERY VERSUS PAYMENT Treasury Bills, Notes & Bonds and Government Agencies' securities shall be purchased using the delivery versus payment method. That is, funds shall not be wired or paid until verification has been made that the collateral was received by the Trustee. The collateral shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. IX. MANAGEMENT AND INTERNAL CONTROLS The Director of Finance shall establish a system of internal controls, which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officials of the City. Controls and managerial emphasis deemed most important that shall be employed where practical are: A. Control of collusion. B. Separation of duties. C. Separation of transaction authority from accounting and record keeping. D. Custodian safekeeping receipts records management. E. Avoidance of bearer-form securities. F. Clear delegation of authority. G. Documentation on investment bidding events. H. Written conformation of telephone transactions. 1. Reconcilement and comparisons of security receipts with the investment subsidiary records. J. Compliance with investment policies. K. Accurate and timely reports. L. Validation of investment maturity decisions with supporting cash flow data. M. Adequate training and development of Investment Officials. N. Verification of all interest income and security purchase as sell computations. O. Review of financial condition of all brokers, dealers and depository institutions. P. Staying informed about market conditions, changes, and trends that require adjustments in investment strategies. COMPLIANCE AUDIT The City of La Porte shall perform, in conjunction with its annual financial audit, a compliance audit of management controls on investments and adherence to the entity's established investment policies. The audit shall include a formal review of the quarterly investment reports by an independent auditor and the results reported to the governing body by the independent auditor. Also, the governing body shall review its investment policy and investment strategy not less than annually and adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and strategy, and recorded any changes made to them. -~-'--~'~-~-'-~~-,-..~,~---.,--~-"..._.- Exhibit A City of La Porte Approved List of Brokers/Dealers and Investment Pools Brokers/Dealers Tony Sekaly Coastal Securities Bill Kodak First Empire Securities, Inc. Mark Gaudio TDI Incorporated Ben Ramsey Duncan Williams, Inc. Gregory Thompson Vining Sparks Investment Pools TexPool LOGIC Investment Pool ~"._.~'--._....__...~-~-~--~-"""~,~'"----'".~_..""...__.. ,.', '---'.' "--'_.'._-'~~~... Exhibit B BROKER/DEALER CERTIFICATION FORM As required by Texas Government Code 2256.005 (k) CITY OF LA PORTE, TEXAS The City of La Porte acknowledges that the only means the firm has to preclude imprudent investment activities arising out of transactions between the firm and the City is to confirm that all provisions of the City's investment policy are followed in investment transactions conducted between the firm and the City, and, the second paragraph below should be read accordingly. I, as a registered principal for the firm do hereby certify that I, and the broker covering this account, have received the investment policy of the City. We acknowledge that this firm has implemented reasonable internal procedures and controls in an effort to preclude imprudent investments between the City and the firm. Signature Name: Title: Date: Exhibit C City of La Porte, Texas Investment Strategy Statement The City of La Porte, Texas (the "City") will strive to administer and invest its pooled funds at the highest investment return possible while always taking into account the primary goals of preservation of principal and liquidity of funds invested consistent with the City's investment policy. The City's funds, which are pooled together and constitute the investment portfolio, include all financial assets of all funds managed by the City, including but not limited to receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and funds received by the City where the City performs a custodial function. The City will never invest its funds in a security that is deemed unsuitable to the financial requirements of the City. Maturities will be staggered in a manner that meets the cash flow needs of the City. The primary investment objective is the preservation and safety of principal. Each investment transaction shall seek first to ensure that principal losses are avoided, whether they are from security defaults or erosion of market value. The City's investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. The City shall always maintain a highly diversified investment portfolio in order to reduce the amount of credit and market risk exposed to the City's portfolio. After first considering safety and liquidity, the City's investment portfolio shall be designed with the objective of regularly exceeding the average rate of return on the three month U.S. Treasury Bill. The two-year Treasury Note may also be used to measure the performance of the investment portfolio to the current market. The City shall seek to augment returns above this threshold consistent with risk limitations identified in the City's investment policy and prudent investment principles. --"-"~'_.~"-"'-'~"-'-"-"-"'-''''''_.'.'''''~'~-~---~......,""-~'-',+.._- REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: 1/113/00 Appropriation Agenda Date Requested: Source of Funds: Department: ';\dmilli~trlltifp ~ Resolution: k Ordinance: Account Number: Report: Amount Budgeted: Exhibits: Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION On October 23,2000 a workshop was held to discuss the Northside Community Neighborhood Plan. At that time Council directed staffretum with a resolution recommending adoption of the plan. Action Required bv Council: Consider approval or other action regarding a resolution approving the Northside Community Neighborhood Plan. A / / /10 I'. ,I 0<:/ Date ( RESOLUTION NO. 00- /1( THIS IS A RESOLUTION ADOPTING THE NORTHSIDE COMMUNITY NEIGHBORHOOD PLAN, UPON RECOMMENDATION OF THE NORTHSIDE NEIGHBORHOOD PLAN STEERING COMMITTEE, AND CONSULTANTS HAWES, HILL & PATTERSON, L.L.P.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, Section 211.004 of the Texas Local Government Code provides that Municipalities may adopt plans to promote the health, safety, and welfare of their communities; and WHEREAS, on October 23, 2000, the City Council of the City of La Porte received (in open session duly posted as required by law) the recommendation of consultants engaged to develop, in conjunction with citizens of the Northside of La Porte (including the La Porte Community Civic Club), and the Northside Neighborhood Plan Steering Committee, the Northside Community Neighborhood Plan; and WHEREAS, a true copy of the plan recommended by the citizens, consultants, and Northside Neighborhood Plan Steering Committee is attached to this resolution; and WHEREAS, a more specific purpose of said plan is to guide Northside residents, the city of La Porte, and others regarding opportunities to enhance the quality of life within the Northside community, by identifying and prioritizing the needs and goals of said Northside community, and categorizing them according to the governmental or service entity that may be able to fulfill them, and provide funds necessary to accomplish said goals and fulfill said needs; and WHEREAS, after due consideration of comments made by the public at said City Council Meeting together with the recommendations of staff and said consultants oo~ I YJ PAGE 2 presented at said City Council meeting, the City Council of the City of La Porte finds that the Northside Community Neighborhood Plan is desirable and in furtherance of the goals established in the Comprehensive Plan of the City of La Porte, adopted by Resolution 86-35, passed on December 8, 1986, and amended by resolution 94-11, passed on December 12,1994; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, THAT: Section 1. That the Northside Community Neighborhood Plan, which is incorporated by reference herein, be and is hereby authorized, approved, and adopted pursuant to the recommendations of the city staff and consultants, in conjunction with citizens of the Northside of the City of La Porte (including the La Porte Community Civic Club), and the Northside Neighborhood Plan Steering Committee. Section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Tx. Gov't 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 Council further ratifies, approves, and confirms such written notice and contents and posting thereof. Section 3. This Resolution shall be effective upon its passage and approval. 00 ' I f7 PASSED AND APPROVED this J~.ff-- day of November, 2000. CITY OF LA PORTE By: df~~ N an Malone, ayor ATTEST: PAGE 3 .------- DUE TO THE VOLUME OF THIS AGREEMENT IT IS NOT ENCLOSED IN YOUR PACKET. YOU MAY REVIEW IT IN THE CITY SECRETARY'S OFFICE IF NEEDED. IT IS THE STANDARD CONTRACT FORM USED FOR ALL INDUSTRIAL DISTRICT AGREEMENTS. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Department: er 13 2000 Agenda Date Requested: Source of Funds: Requested By: John Jo r Account Number: Amount Budgeted: Report: _Resolution: _Ordinance: 2- Amount Requested: Exhibits: Budgeted Item: _YES _NO 2 Ordinances and an Industrial District Agreement SUMMARY & RECOMMENDATION The City and Industry have agreed to renew the provisions of the Industrial District Agreement for another seven- year period. The current agreements will expire December 31, 2000. The City mailed 61 Industrial District Agreements in March 2000. To date, we have approved 41 agreements. The total agreements approved after tonight's action will be 43. Two industries have returned executed agreements complete with Exhibits A, B, and C. These 2 will be considered by City Council for execution. The other agreements will be presented to City Council as they are received and reviewed by City staff. Staff recommends City Council authorize the execution ofIndustrial District Agreements with the following industries: . Greif Bros. Corporation . Linde Gas Inc. Action Required bv Council: Consider approval of Ordinances 2000-IDA-42 and 2000-IDA-43 authorizing the execution by the City of La Porte of Industrial District Agreements listed above. Approved for City Council A2enda G~ ,. \~~ Robert T. Herrera, City Manager \L---z-(.)t) Date ORDINANCE NO. 2000-IDA-42 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH GREIF BROS. CORPORATION, FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. GREIF BROS. CORPORATION has executed an industrial district agreement with the City of La Porte, for the term commencing January 1, 2001, and ending December 31; 2007, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. section 2. The Mayor, the City Manager, the City Secretary, and the city Attorney of the City of La Porte, be, and they are hereby, authorized and empowered to execute and deliver on behalf of the City of La Porte, the industrial district agreement with the corporation named in section 1 hereof. Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted ata place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. By: CITY OF LA PORTE /ka/--- Nerman . a one, Mayor ATTEST: ~aun~,a.~ Mar ha A. Gillett City Secretary AP~u! d Knox W. Askins, City Attorney 2 OCT-13-2000 FRI 01:03 PM l'AX NU, t'. UC ~ " ", NO. 2000-IDA-~ { { STATE OF TEXAS { { COUNTY OF HARRIS { INDUSTRIAL D~~T~lCT ~GR~EK~ This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and G R.'G\ \= bee<;:,. (ti)\LPOR-A..\\.Cf\ ...__ ,a DLLCI...\..,,_:ll~...e..L corporation, hereinatter called "COMPANY", WIT N E sSE T H: WHEREAS, it is the established policy of the city council of the city of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the city and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaff irmed and adopted by this City Council as being in the best interest of the City and its citizens; and . WHEREAS, pursuant to its policy, city has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "eattleground Industrial District of La Porte, Texasll, and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Eayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land wi thin a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La. Porte; and WHEREAS, city desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the city council of said city and recorded in the official minutes of said city: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City 'referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 2., 2000 OCT-13-2000 FRI 01:03 PM "AX NU, 1, Uj , ' , ' I. city covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, city does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of city, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by city, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (h) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "e" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or jUdicial proceeding authorized by the Texas Water code, the Texas Clean Air Act, the Texas Health & safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by city, Company agrees to render and pay full city ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended) , the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris county Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appr~ise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the II in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall he conducted by city, at city's expense, by an independent appraiser of city's selection. The parties recognize that in making such appraisal for uin lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 OCl-l J-cUUU ~ l< 1 U 1 : U4 t'il t'HJ<. NU, j, Uq ., , Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide city with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's IIRendition"). company may file such Rendition on a Harris County ApPFaisal District rendition form, or similar form. The properties which the Company must render and upon which the "in lieu ofll taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this paragraph III (sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to city a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possessi~n or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and inclUding December 31, 2007, Company shall pay to City an amount lIin lieu of" taxes" on company's Property as of January 1st of the current calendar year ("Value Year") . D. Company agrees to render to ci't:y and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City" if all of the company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of city and appraised 3 OCT-13-2000 FRI 01:04 PM r AX NU, t', U::l each year by city's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and 2 . (a) On any Substantial Increase in value of the Land, improvements~ and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, reSUlting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an a~ount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to city if all of said new construction had been within the corporate limits of city and appraised by city's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements~ and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (e) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be .removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to ci ty on all of the Company's tangible personal property of, every description, located in an industrial district of city, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of city and appraised each year by the City's independent appraiser, 4 OCT-13-2000 FRI 01:04 PM l' AX NU. I. UO in accordance with the applicable provisions of the Texas property Tax Code. wi th the sum of 1, 2 and 3 reduced by the amount of city I s ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris county Appraisal District. IV. This Agreement shall extend for a period beginning on the ~st day of January, 2001, and continuing thereafter until December 31, 2007, unless extended for an additional period or periods of time upon mutual consent of Company and city as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2007, the agreement of City not to annex property of Company within the District shall terminate. In that event, city shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, section 42.044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the state of Texas which imposes greater restrictions on the right of city to annex land belonging to Company or imposes further obligations on city in connection therewith after the annexation of such land, Company will waive the right to require city to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between city and all of the owners of all land within the District of which it is a part. VI. A. In the event company elects to protest the valuation for tax purposes set on its said properties by city or by the Harris county Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to city on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions, 'plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to city in accordance with the 5 OCT-13-2000 FRI 01:05 PM FAX NU, t'. U ( foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the city or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter company shall make payment to city of any additional payment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree wi th any appraisal made by the independent appraiser selected by city pursuant to Article II above (which shall be given in writing to company), Company shall, within twenty (20) days of receiving such copy, give written notice to the city of such disagreement. In the event company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should company give such notice of disagreement, company shall also submit to the city with such notice a written statement setting forth what company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company I s property for II in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by'city, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by company, Company agrees to pay to city on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" payments which would be due hereunder on the basis of Company's valuations rendered and/or submitted to city by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by city, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the u.s. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company I s property for calculation of the "in lieu" payment and total payment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including 6 OCT-13-2000 FRI 01:05 PM r AX NU, I, U(J expert opinion, and shall render its written decision as promptly as practicable. That decision shall then he final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbi tration Act (Chapter 171, "General Arbitration", Texas civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by city in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon ci ty and Company, and upon Company I s successors and assigns, affiliates and subsidiaries, and shall remain in force whether company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof relnains in force. Company shall give city written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If city enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and city agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. x. The parties agree that this Agreement complies with existing laws pertaining to the SUbject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. Without such agreement neither party hereto would enter into this Agreement. In the'event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 OCT- }j-~UUU H<l U 1 : Ub rrl /" HJ\ l'1U, r, Ut1 corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 2001. Name: By: lA~EST : - r1t1t1/JOv(t{.11I/ City Secre ary c~ O~E4 By: 4 'ir>> 7l ~ N rman L. Malone Mayor ~wd Knox W. Askins city Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 By: G<J~ \\ ~ Robert T. Herrera city Manager CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 Phone: Fax: (2Bl) 471-1886 (281) 471-.2047 a EXHIBIT A TO INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE AND GREIF BROS. CORPORA nON Metes and bounds description of land - see attached OCT-19-~UUU lHU Ul:41 1"'1'1 I'Hl\ l'lU. r. U,J '~. (\ C.~TAeL.I~HEO 1877 G1UUF BRos. CORPORATION NOReo DIVlsrON GBD SOUTHWESTERN OISlAICT OFfiCE 10700 51AANG ROAD r.O BOll OO~ LA roRTE, lEllAS 77:Hl 713.4'11.0/31 August 29, 1986 Mr. Knox W. Askins, J. D., P. C. Attorney at Law 702 W. Fairmont Parkway P. O. Box 1218 La Porte, TX 77571-1218 Dear Mr. As]{ins: In response to your letter of August 27, 1986, please find enclosed the legal description of Greif Bras. Corporation's La Porte, Texas plantsite. Lot 15, of Strang Subdivision in the E-BRINSON survey, abstract No. 5 in accordance with plat of said subdivision recorded in Volume 75, Page 22 of the Harris County Deed Records, and being the same property conveyed by the Bank of the Southwest National Association, Houston to the Greif Bros. Cooperage Corporation by deed dated November 16, 1961 and recorded in Volume 4554, Page 28 of the deed records of Harris County Texas. Should you need additional information, please let us know. Best regards, GREIF BROS. CORPORATION ~~--- M. M. Bixby -....---j Vice president MMB:lc OCT-19-2000 THU 01:41 PM r AX NU. t'. U4 ,.,.-..., ~\ EXHIBIT "A-l" Lot 15, of strang Subdivision in the E-BRINSON survey, abstract No.5 in accordance with Plat of said subdivision recorded in Volume 75, Page 22 of the Harris County Deed Records, and being the same property conveyed by the Bank of the Southwest National Association, Houston to the Greif Bros. Cooperage Corporation by deed dated November 16, 1961 and recorded in Volume 4554, Page 28 of the deed records of Harris County, Texas. .1 - ~ 2.-707 ACRE TRACT METES AND BOUNDS DESCRIPTION x~.~ "'~K -:-2007' . . ' 4 " . ~,---' ~ '..'.... ~ . , B~i~~-a-2.707 acre (117,928 sq.ft.)'tract of land comprising part of Lot 16, Strang Subdivision (Volume 75.. ,Page 22. Harris County Map, Records) in the Enoch Brinson SurveYi A-5,. Harris County, Te~as. "the 2.707 acre tract a~ surveyed by H. Carlos Smith, Engineers'& Surveyors, Inc., on November 8 through 11, 1988, is more particularly described by metes and bounds as follows: ' Commencihgat a 1/2 inch iron pipe found 'on the original East right-of-way line of Miller Cut Off Road (based on a width of 60.00 feet.) and the North line of the 40 feet '~ide T. & N.O. Railroad right-of-way; said corner being the ,Southwest corner of that certain Tract II as conveyed by Pilot Industries of Texas, Inc., to J.S.P. Properties Group on August 23, 1976 (Harris County Clerk's File No. E 880450). . , ;':':.-'".,.- Then~ej~E~st; coincident with the South boundary line of Tract II and North lin~ of said T. & N.O. right-of-~ay a distance of 50.00 feet toa 5/8 inch iron rod set for the Southwest corner, of this'2.707 acre tract and the POINT OF BEGINNING; and from, which a chain link fence corner was found 2.1 feet North and O.B .r .:t Wes,t ~":c::' . "'-.J ThAnc~~Norih 0 degrees 01 minutes 49's~conds East (Call North ~ degr~es P? minutes East) coincident with the East boundary line-of ~ract II (Tract II being t~e West 50 feet of Lot 16 as awarded to Harris County as a rlght-of~way for construbtion and maintenance of a County Road, Condemnation proceeding Cause No. 25,446, and recorded in Volume 152, Page 628, H.C.D.R.) and the West boundary line of Tract I (Call 9.30a Acres) (H.C.C.F.: No. E,880450); -a:distance of 245.00 feet to a.5/8 inch iron roj set~ ror the Northwest corner o,f this 2 .70.7 acre tract. ' " Thence, East;, ,a distand~ of 373.18 feet to"a5/8 inch iron 'r'od'set for a point for corner-~~'., -. , Thence,' North 68 aegrees 12 minutes 09 seconds East; a distance of 107.72 feet toa 5/8 inch iron rod set for the Northeast corner..,.of this 2.707 acre tract.' #t..'";~?\ : " ',;. " Thence, Squth..'Q\ degl:-ees<O i minutes 49 seconds West (Call Sou.th 0 degree~\'02 "ird..z1\.rtesWest) ; coincident with the East' . boundary lines->'~:t';::said~.tract I~nd Lot 16 and the West boundary line of Lot 15; passing.~'P '4..~~{)O.feeta 5/8 inch iron rod set'on line; for atotal,~~starice,.0{"~,~5.,,eO,-:"~:~f.~,to a 5/8 inch iron rod set for the South~a..$t.'corn~r of .:th~s,2 J107 acre tract and from which a chain aink 'f1:il1c'e cq'rner:'was found 1.35 feet North and ' . 10.1 feet East .... :. .:/~ ,'o! ' ": '~, , ,:r ;:.; - _ _ '.' '"', ">f' Thence, We~1b'~;':do:'fkcldent with the South boundary line of. " said Tract I and the North line of said ~. & N.D. Railroad 'right- . of-way; a distance of 473.18 feet (Call 473.3 feet) to the"POINT OF BEGINNING., tll A 01 u..-LvU. ~ KEVIN A. OLSON TEXAS REGISTERED PUBLIC SURVEYOR NO: 4524 DATE:' NOVF:r1BER 1 t\. 1988 . _ T r: l~ : " I .. :~ ') r;.j - (} : : u..> ~ I I ,~' - I Cl en 01 c:...o &l~15ui~ it o.c;:~., -e ~g~! ..Q)~C5"'" , :\:E1551i1ii-g 5~a-~-e'E :Zc;:-~ .Glo <_IIl:i5,srnu It .!! .8 '81 Gl fo. ~ O.cGlGl - :\: -:.s:= 8. f-g WC;:~_l'llGll'll :\: .2 S 0 0. it "0 liiCDGl"OrnGl (/,)"O-IIlCDGlii: i:r:~" ~i:1 6 ~1Il W c- -alal o~~ 8.cit It_Ill .!!u-e 8ocC;:"O'OGl - 0 -I: W ~.8'B~: ~ a:+::0:18c~ Gl-'8001ll .s-g~_;e.5 :;,o.O'OGl <Sfa'i.s '..: - -- ~"~~...--......."""",-..... EXHIBIT B PLA T REFLECTING OWNERSHIP BOUNDARIES Please use plat descriptive as previously files with the 1993 Industrial District Agreement pending further notice of any changes OCT-13-2000 FRI 01 :06 PM I'HX NU. r. u: "EXHIBI:T e" paqe 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' Ylide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit "A" which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights-Of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100 I strip is developed, the initial 50' of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, State Highway 225, or state Highway 146 shall be screened by one of the following techniques: a} Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) -, The use of earthen be~ms with approximately 3: 1 side' slopes, 50' wide at the base and 81 high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. OCT-13-2000 FRI 01:06 PM I-AX NU, r. 1 j . \. ,. IIEXHIBIT e" Page 2 of 2 A screening plan, to be approved by the city, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. c) In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto state Highway 225 or state Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from paid strip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris county and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris county and city. GBD GREIF r-~ ~; ~ . ,~, '7 ! n, r-"-', r--"~'---- .-__.__.<_______........... BROS. CORPORATION 425 WINTER ROAD DELAWARE,OH 430 I 5 October 19, 2000 Ms. Kathy Powell City of La Porte PO Box 1115 La Porte TX 77572-1115 Dear Ms. Powell, Please find enclosed two signed Industrial District Agreements from Greif Bros. Corporation. If there are any questions or concerns regarding the enclosures, please contact me at (740) 549-6010. Sincerely, ~:.8~ - Sf. Tax Accountant J J~.J_ '".__~-, ~ ~ ~ J: I! 'I 232000 II/J , /. i , , City of La Porte Established 1892 March 29,2001 Grief Bros. Corporation Attn: Tia R. Reiser 425 Winter Road Delaware, OH 43015 Re: Industrial District Agreement (IDA) Series 2001-2007 Dear Ms. Reiser: In reference to the City's letter of January 16,2001, our statement regarding Exhibit "A" was misleading. Your original submittal will be acceptable. However, we would prefer a single unified metes and bounds description of the Greif Bros. property, if one is available. Additionally, Exhibit "B" which does show the property's ownership line is also acceptable. However, if available, we would prefer the exhibit to depict the course and distance of each of the property's boundary lines. Typically, we are able to trace the boundary line on Exhibit "B" by following the description in Exhibit "A". Thank you for contacting us and I apologize for the confusion. Should you have any questions, please contact Brian Sterling, Engineering Technician. P.O. Box 1115 . La Porte, Texas 77572-1115 · (281) 471-5020 City of La Porte Established 1892 January 16, 2001 Greif Bros. Corporation Attn: Tia R. Reiser 425 Winter Road Delaware, OH 43015 Re: Industrial District Agreement (IDA) Series 2001-2007 Dear Ms. Reiser: Enclosed is a fully executed duplicate original of the Industrial District Agreement between your firm and the City of La Porte, effective January 1,2001, for the term expiring December 31, 2007. I also enclose a certified copy of the City's approval ordinance, for your records. As part of the document preparation, the City examined Exhibits" A" and "B" furnished by your firm. While reviewing the documents, we found that: Exhibit" A" does not describe all Greif Bros. property in a metes and bounds format. Exhibit "B", as submitted, depicts site improvements only. This exhibit does not reflect the property description from Exhibit" A". We feel that these exhibits will assist in monitoring the faithful performance of the Industrial District Agreements as well as aiding long-range planning activities. If you do not have this information, cannot readily develop it, or need to discuss this request, please contact John Joerns, Assistant City Manager. Thank you for your assistance in completing these documents. Respectfully, ~~~ T, t\~\.(J Robert T. Herrera City Manager P.O. Box 1115 . La Porte, Texas 77572-1115 · (281) 471-5020 ORDINANCE NO. 2000-IDA-43 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH LINDE GAS INC., FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. LINDE GAS INC. has executed an industrial district agreement with the City of La Porte, for the term commencing January 1, 2001, and ending December 31, 2007, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. section 2. The Mayor, the City Manager, the City Secretary, and the City Attorney of the City of La Porte, be, and they are hereby, authorized and empowered to execute and deliver on behalf of the City of La Porte, the industrial district agreement with the corporation named in section 1 hereof. section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. CITY OF LA PORTE By: ~~~ Mayor ATTEST: 'i)j!lif,~ d. Mill Ma tha A. Gillett City Secretary Knox City 2 _."~--_.~_._-_._.~_..__._---""""'.---~..~_.. SEP-28-2000 THU 04:16 PM FAX NO. P, 02 I NO. 2000-IDA---1l... { { STATE OF TEXAS { { COUNTY OF HARRI S { INDUSTRIAL DIB~RICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITYII, and LINDE GAS INC. , a DELAWARE corporation, hereinafter called "COMPANY", WIT N E SSE T H: WHEREAS, it is the established policy of the city council of the city of La Porte, Texas, to adopt such reasonable measures from time to ti~e as are permitted by law and which will tend to enhance ,the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this city council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, city has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as section 42.044, Texas Local Government Codej and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter flLand") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the city of La Porte; and WHEREAS, city desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the city Council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of city"referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 24, 2000 SEP 28 '00 16:36 PAGE. 02 I. city covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, city does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "c" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the un annexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by city, at city's expense, by an independent appraiser of city's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide City with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties. which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III ( sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, Company shall pay to City an amount "in lieu of taxes" on company's Property as of January 1st of the current calendar year ("Value Year"). D. Company agrees to render to city and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City if all of the company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 each year by city's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and 2. (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an amount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (c) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 in accordance with the applicable provisions of the Texas Property Tax Code. wi th the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, unless extended for an additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2007, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, section 42.044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions, 'plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the 5 foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the city or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make paYment to city of any additional paYment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree wi th any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company), company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" paYments to be made under this Agreement. Should Company give such notice of disagreement, company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" paYments which would be due hereunder on the basis of Company's valuations rendered and/or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the u.S. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" paYment and total paYment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including 6 expert oplnlon, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subj ect only to judicial review as may be available under the Texas General Arbitration Act (Chapter 171, "General Arbitration", Texas civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon ci ty and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If city enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and City agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. X. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. without such agreement neither party hereto would enter into this Agreement. In the'event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 2001. Lin de c)M 'YNC By: (COMPANY) ~~ Namer . H. 73 u IZ,'-'..e/~ Title: V, p. () f~ATr(/;vJ Address: II c.D 3 STrf+tJ9 rLd LJL {J~1 ,,-h ,. Tx 1757 (- q 7'17 CITY OF LA PORTE By: ~./'~~~ / rman:C. Malone ----- Mayor ATTEST:. ~ ' ~a , 'l/JLl ci Secretary By: QlJ~ T. \{~ Robert T. Herrera City Manager Knox W. Askins City Attorney city of La Porte P.O. Box 1218 La Porte, TX 77572-1218 CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 Phone: (281) 471-1886 Fax: (281) 471-2047 8 SEP-28-2000 THU 04:16 PM FAX NO. P. 04 "EXHIBIT A" (Metes and Bounds Description of Land) SEP 28 '00 16:36 PAGE. 04 EXHIBIT A LEGAL DESCRIPTION OF THE L~ Legal Description of Parcell 28.6903 acres SEE ATTACHED ( L HOU03:144138.7 PARCEL 1 FIELD NOTES of a 28.6903 acre tract of land situated in the Enoch Brinson Survey, Abstract S, Harris County, Texas and being out of and a part of that certain 23.2845 acre tract conveyed by Syngas Company to National Distillers & Chemical Corporation by deed dated December 31, 1986, and recorded in County Clerk's File No. K.905990 of the Official Public Records of Real Property, Harris County, Texas; out of and a part of that certain 20.9426 acre tract called Parcel No. 2 described in deed from E. I. DuPont De Nemours & Company to National Distillers & Chemical . COIporation dated December 31, 1986, and recorded in County Clerk's File No. K905991 of the Official Public Records of Real Property, Hams County, Texas; out of and a part of Lots 1,2 and 3 of the A O. Blackwell Subdivision according to the map of record in Volume 83 at Page 343 of the Deed Records ofHanis County, Texas; and out of and a part of Lots 48, 49 and 50 of the Strang Subdivision according to the map of record in.volume 75 at Page 22 oftheDef'4 Records of Harris County, Texas. This 28.6903 acre tract of land is more particularly described by the following metes and bounds, to-wit: NOTE: ALL BEARINGS AND COORDINATES REFER TO THE QUANTUM PLANT COORDINATES AND BEARINGS. REFERENCE IS MADE TO PLAT OF EVEN DATE ACCOMPANYING TInS METES AND BOUNDS DESCRIPTION. ( , BEGINNING at a 1 inch iron rod found in concrete for the Westernmost Northwest comer of the . heretofore mentioned 23.2845 acre tract and the East line of that certain 10.43 acre tract conveyed by National Distillers & Chemical Corporation to Coastal Industrial Water Authority by deed dated October 29, 1976, and recorded in County Clerk's File No. F014216 of the Official Public Records of Real Property, Harris County, Texas, at the Southwest comer of that certain 32.6510 acre tract ofland conveyed by Millennium Petrochemicals, Inc. to Equistar Chemicals, L.P. by deed recorded in County Clerk's File No. S933609 of the Official Public Records of Real Property, Harris County, Texas. Said 1 inch iron rod being the Westernmost Northwest comer and POINT OF BEGINNING of said 28.6903 acres herein described. From this BEGINNING comer a 1 inch iron rod found in concrete at the intersection of the North right-of-way line of Strang Road (60 feet wide right-of-way) and the East right-of-way line of Miller Cut-Off Road (60 feetwide right-of-way) bears South 53 deg. 53 min. 10 sec. West a distance of 3146.92 feet. This BEGINNING comer has a Quantum Coordinate Value of South 910.06 and East 4544.37. THENCE: North 41 deg. 26 min. 22 sec. East along the West line of said 28.6903 acres herein described (same being the West line of said 23.2845 acres and the South.line of said 32.6510 acres) for a distance of 680.71 feet to a 1/2 inch iron rod found for the Northernmost Northwest comer of this tract, the Northernmost Northwest comer of said 23.2845 acres and an angle point in the South line of said 32.6510 acres. ( '- 80003: 1 489n.2 PAGE 2 - 28.6903 ACRES. THENCE: South 89 deg. 59 min. 25 sec. East along the North line of said 28.6903 acres herein described (same being the North line of said 23.2845 acres and the South line of said 32.6510 acres) for a distance of 450.77 feet to a point in the East line of said Lot 3 of said Blackwell Subdivision at the shore line of San Jacinto Bay for the Northeast comer of said 28.6903 acres herein described; the Southeast comer of said 32.6510 acres and the Northeast comer of said 23.2845 acres. lHENCE: Along and with the meanders of the shore line of said San Jacinto Bay (same being the East line of said 23.2845 acres, the East line of said 28.6903 acres herein described and the East line of Lots 3 and 2 of said Blackwell Subdivision) the following courses and distances: South 14 deg. 22 min. 22 sec. East - 25.05 feet South 30 deg. 46 min. 36 sec. East - 144.18 feet North 86 deg. 59 min. 29 sec. East - 33.88 feet South 44 deg. 44 min, 06 sec. East - 61.43 feet. South 22 deg. 58 min. 50 sec. East - 20.64 feet. South 41 deg. 23 min. 39 sec. West - 22.89 feet. South 48 deg. 31 min. 53 sec. East - 9.69 feet. North 47 deg. 11 min. 13 sec. East - 10.99 feet. South 32 deg. 29 min. 48 sec. East - 188.08 feet. ( lHENCE: Along and with the meanders of the shore line of said San Jacinto Bay (same being the East line of said 23.2845 acres, the East line of said 28.6903 acres herein described and the East line of said Lot 2 of said Blackwell Subdivision) South 46 deg. 20 min. 09 sec. East a distance of 24.1 0 feet to a point for an exterior comer of said 28.6903 acres herein described and the Northernmost comer of that certain 12.1206 acre tract surveyed this date. lHENCE: South 40 deg. 37 min. 28 sec. West along an interior line of said 28.6903 acres herein described (same being the Northernmost West line of said 12.1206 acres surveyed this date) and at 78.90 feet pass a 1/2 inch iron rod set for reference, and at a total distance of 132.58 feet set a 1/2 inch iron rod for an interior comer of said 28.6903 acres herein described; same being an exterior Northwest comer of said 12.1206 acres surveyed this date. THENCE: South 46 deg. 51 min. 43 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 79.85 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: North 85 deg. 48 min. 16 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 27.97 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein descn"bed and an interior comer of said 12.1206 acres surveyed this date. c. HOU03:14I977.2 PAGE 3 - 28.6903 ACRES. THENCE: South 45 deg. 33 min. 16 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 253.68 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 05 deg. 34 min. 29 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 60.12 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein descnDe<i and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 40 deg. 53 min. 56 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 159.81 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described alld an interior comer of said 12.1206 acres surveyed this date. THENCE: North 49 deg. 21 min. 00 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 64.04 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein descnoed and an exterior comer of said 12.1206 acres Surveyed this date. ( THENCE: South 43 deg. 15 min. 47 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 93.31 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein descnDed and an interior comer of said 12.1206 acres surveyed this date. THENCE: North 48 deg. 53 min. 14 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 193.93 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein descnDe<i and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 41 deg. 42 min. 31 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 344.09 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein descnDe<i and the Westernmost exterior comer of said 12.1206 acres surveyed this date. THENCE: South 48 deg. 03 min. 53 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 117.35 feet to a point for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. l_ 80003:148977.2 PAGE 4 - 28.6903 ACRES. THENCE: South 42 deg. 43 min. 57 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 23.03 feet to a point for an interior comer of said 28.6903 acres herein described and an exterior comer of said 12.1206 acres surveyed this date. THENCE: South 47 deg. 57 min. 24 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) "for a distance of 72.93 feet to a point for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 41 deg. 27 min. 06 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 12.98 feet to a point for an interior comer of said 28.6903 acres herein described and an exterior comer of said 12.1206 acres surveyed this date. THENCE: South 47 deg. 24 min. 52 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 72.93 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein described and an exterior comer of said 12.1206 acres surveyed this date. ( THENCE: North 41 deg. 26 min. 18 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 226.13 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 48 deg. 42 min. 03 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 617.93 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. This comer is in the West or Northwest line of 14.4060 acres surveyed this date. THENCE: South 41 deg. 23 min. 52 sec. West along the East or Southeast line of said 28.6903 acres herein described (same being the West or Northwest line of said 14.4060 acres surveyed this date) for a distance of 17.43 feet to a fence comer post for an interior comer of said 28.6903 acres herein described; same being an exterior comer of said 14.4060 acres surveyed this date. THENCE: South 48 deg. 51 min. 09 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 16.38 feet to a fence comer post for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. l HOU03: 148977.2 '. PAGE 5 - 28.6903 ACRES. THENCE: South 41 deg. 12 min. 20 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 67.37 feet to a fence comer post for the Southernmost comer of said 28.6903 acres herein described. and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 49 deg. 18 min. 43 sec. West along an exterior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of. 227.23 feet to a fence comer post for an angle point in said line. THENCE: North 85 deg. 30 min. 55 sec. West along an exterior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 20.44 feet to a fence comer post for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 49 deg. 52 min. 55 sec. West along an exterior line of said 28.6903 acres herein. described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 107.17 feet to an 80 penny nail set for an interior comer of said 28.6903 acres herein described and an exterior comer of said 14.4060 acres s}lIVeyed this date. ( THENCE: South 41 deg. 5frmin. 12 sec. West along an exterior line of said 28.6903 acres herein described and an exterior line of said 14.4060 acre tract surveyed this date and at 115.21 feet pass a 1/2 inch iron rod set for reference and at a total distance of 168.26 feet a point for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 48 deg. 09 min. 48 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 54.84 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 40 deg. 43 min. 24 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 26.63 feet to an "x" in concrete for an interior comer of said 28.6903 acres herein described and an exterior comer of said 14.4060 acres surveyed this date. THENCE: North 48 deg. 44 min. 26 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 62.17 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein described and an exterior comer of said 14.4060 acres surveyed this date. ( H0U03:I489n.2 "-- - PAGE 6 - 28.6903 ACRES. ".. -" .-~ THENCE: South 41 deg. 43 min. 58 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 99.07 feet to a P.K. Nail set for an interior comer of said 28.6903 acres herein described (same being an exterior comer of said 14.4060 acres surveyed this date). THENCE: South 48 deg. 03 min. 56 sec. East along an interior line of said 28.6903 acres berem described (same being an exterior line of said 14.4060 acres SUIveyed this date) for a distance of 21.56 feet to an "x" in concrete for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. lHENCE: South 38 deg. 58 min. 27 sec. West along an exterior 1in~ of said 28.6903 acres berein described (same being an interior line of said 14.4060 acres smveyed thisdRte) for a distance of 114.92 feet to a 1/2 inch iron rod set for the Southernmost Southeast comer of said 28.6903 acres herein described and the Northwest comer of said 14.4060 acres surveyed this date in the Northeast line of that certain 0.776 of an acre of land conveyed to Humble Oil & Refining Company by Herbert W. Grainger, et al, in deed dated June 4, 1954, and recorded in Volume 2796 at Page 192 of the Deed Records of Harris County, Texas. ( lHENCE: North 48 deg. 26 min. 10 sec. West along the South or Southwest line of said 28.6903 acres herein described (same being the North or Northeast line of said 0.776 of an acre tract, the South or Southwest line of said 20.9426 acres and the South or Southwest line of said 23.2845 acres) for a distance of 509.23 feet to a 1/2 inch iron rod found in the West line of said Lot 49 and the East line of said Lot 48 of said Strang Subdivision at the Northwest comer of said 0.776 of an acre ofland and the Northeast comer of that certain 0.727 of an acre tract ofland called Tract 2 and conveyed to Humble Oil & Refining Company by Carl C. Patrick in deed dated June 2, 1954, and recorded in Volume 2796 at Page 260 of the Deed Records of Harris County, Texas; for an angle point in said line. THENCE: North 48 deg. 42 min. 10 sec. West along the South or Southwest line of said 28.6903 acres herein described (same being the North or Northeast line of said 0.7?-7 of an acre and the South or Southwest line of said 23.2845 acres) for a distance of730.00 feet to a 1/2 inch iron rod found in the East line of the heretofore mentioned 10.43 acre tract for the Westernmost Southwest comer of said 28.6903 acres herein described, the Northwest comer of said 0.727 of an acre tract and the Westernmost Southwest comer of said 23.2845 acres. THENCE: North 00 deg. 06 min. 24 sec. West along West line of said 28.6903 acres herein described (same being the West line of said 23.2845 acres and the East line of said 10.43 aaes) for a distance of240.18 feet to the pLACE OF BEGINNING and containing within these boUDdaries 28.6903 acres ofland. SURVEYED: October, November, December, 1998, and January A.D. 1999. l_ HOOO3:1489n.2 Syngas Land (Lease) EXHIBIT B Permitted Encumbrum 1. Standby fees, taxes and assessments by any taxing authority for the year 1999 and subsequent years not yet due and payable, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership. 2. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities: (a) To tidelands or land comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs, or oceans, or (b) To lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or (c) To filled-in-Iands Or artificial islands, or ( . (d) To statutory water rights, including riparian rights, or (e) To the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across the area. 3. Subject to any portion of the herein described property lying within the boundaries of San Jacinto Bay. 4. Right-of-way for pipeline over Lots 10 and 48 of Strang Subdivision as evidenced by instrument from Lois Cotton Blaydes and husband, Ralph H. Blaydes, to Texas Eastern Transmission Corporation, recorded in Volume 2508, Page 217, of the Deed Records of Harris County, Texas, as amended by instrument dated April 17, 1974, between Selected Land Corporation and Texas Eastern Transmission Corporation, recorded'in the office of the County Clerk of Harris County, Texas under Clerk's File Number E194171. 5. Terms, conditions and stipulations contained in Right-of-Way and Easement recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number K838717. ~ HOU03:144138.7 B:l:: 6. Easements for the construction, use, operation, repair, replacement and removal of pipelines recorded in Deed recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number K905991. 7. Terms, conditions and stipulations contained in Right-of-Way and Easement recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number M882660. 8. Terms, conditions and stipulations contained in Easement recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number M926132. 9. Road easementS described in Easement Agreement recorded under Harris County Clerk's File Number S933613. 1 O. ~ royalty interest in and to all oil, gas and other minerals, on, in, under, that may be produced from the property is excepted herefrom as set forth in instrument recorded in Volume 3218, Page 45 of the Deed Records of Harris County, Texas. 11. 1/16 royalty interest in and to all oil, gas and other minerals, on, in, under, that may be produced from the property is excepted herefrom as set forth in instrument recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number E679845. ( 12. All of the oil, gas and other minerals and all other elements not considered a part of the surface estate are excepted herefrom, all having been reserved in instrument recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number C632918 (surface rights waived as set forth therein). 13. Terms and conditions of that certain Industrial District Agreement dated effective January 1, 1994 by and between the City of LaPorte, Texas and Quantum Chemical Corporation. 14. Rights ofEquistar Chemicals, LP in and to the property as described in the following agreements dated as of December 1, 1997 by and between Millennium Petrochemicals Inc. and Equistar Chemicals, LP for the existing remaining terms thereof: (a) Shared Services Agreement for Water and Utility Instrument Air; (b) Shared Services Agreement for the LaPorte Complex; (c) Sales and Supply Services Agreement (Natural Gas); (d) Fuel Stream Agreement; and ( e) Electricity Service Agreement. 15. Rights of third parties in and to all presently existing pipelines, pipe racks, drainage ditches, culverts, power lines, conduit, cable trays, and roads. "-. HOU03:144138.7 ~ 16. Encroachments and protrusions, if any, of existing (i) pipelines, pipe racks and pipes; (ii) fences; (iii) roads; (iv) sidewalks; (v) landscaping; (vi) drainage ditches, grates and culverts; (vii) power and light poles and lines; (viii) conduit and cable trays; (ix) concrete pavement; and (x) curbs or headwalls into adjoining properties. 17. The Put Option Agreement. 18. Existing easements, easements to be granted to third parties and/or easements to be reserved in favor of Landlord (as applicable) on, over, across or under the Land as described in and in accordance with, the revised Appendix 1. 1 (a) to the Asset Purchase Agreement and Appendix 2.1(a) to that certain Contribution and Sale Agreement dated November 13, 1998 (the "Methanol Contribution AiP"eement") by and among Landlord, Tenant, Millennium Methanol GP Inc., Millennium Methanol LP Inc., Millennium Chemicals Inc., LAG Methanol Corporation, Linde AG and LaPorte Methanol Company, L.P. 19. Any easements or other rights of LaPorte Methanol Company, L.P. in and to the Leased Premises for the purpose of providing electrical service to the facilities described in the Methanol Contribution Agreement. ( I " HOoo3:144138.7 B:J: SEP-28-2000 THU 04:16 PM FAX NO, "EXHIBlT B" (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the city of La Porte.) SEP 28 '00 16:36 p, 05 PRGE.05 "EXHIBIT e" paqe 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit" A" which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights-of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50' of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3: 1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. "EXHIBIT e" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere wi th the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto state Highway 225 or state Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the city's Code of Ordinances, whichever is more restrictive. Dr i veways opening from said str ip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4 . Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and city. **************************************************************************************************** * p, 01 * * TRANSACT I ON REPORT * * SEP-28-2000 THU 04: 16 PM * * * * DATE START RECEIVER TX TIME(L)PAGES TYPE NOTE M# DP * * * * SEP-28 04:16 PM 7137674219 37"(1) 5 SEND OK 908 * * * * * * TOTAL : 37S PAGES: 5 * * * **************************************************************************************************** City of La Porte. Kathy Powell, RTA (281)471-5020 ext. 261 Fad (281}471-7168 City of La Porte To; Mr. Kesenheimer .'rom: Kathy Powell Re: Pages: 4 Date: 09/28/00 cc: Fax: (713) 767-4219 Phone: o Urgent x For Review 0 Please Comment 0 Please Reply 0 Plcnse Recycle . Comments: . Mr. Kesnheimer, I am sending two copies of the first page of the Illdustl'lal District agreement. One needs to be filled in for Linde Gas, Inc. and one for BP Amaco. I need the metes and bounds for Linde Gas and need a survey for both Linde Gass & BP Amaco. Thanks, May 23, 2000 Linde Gas, Inc. 11603 strang Road La Porte, TX 77571-9749 Gentlemen: The city of La Porte reached final agreeme: for the seven year teJ agreement are attache Please insert the pro! on the first page, a authorized officer eXE Please attach Exhibit of the contract, and contract to the city ( Executed agreements re Council agenda for for furnished with a certi and a fully executed c We at the City of La Po District Agreements, wl in 1958, is mutually t companies with which i' Thank you for your COO] RTH:sw Enclosures City of La Porte Established J 892 rBJ IE ((; IE U WI IE fn1 /Ill JUl 1 8 2000 ~ FJ: CnVMANAGER'S OFFICE - App)/c a.,fJ~T15 r1 of - M/~s(~ 0.. A f (3 C OIU..,IJ/~f6 r.O.[)()xlllS. La r()rte, Texas 77S72-111S · (713)471-5020 have ment the tion the ige. )ies the :ity . be ce, ial rte x:ty er City of La Porte Established 1892 January 16, 2001 Linde Gas, Inc. Attn: J.H. Burnett 11603 Strang Road La Porte, Texas 77571 Re: Industrial District Agreement (IDA) (Series 2001-2007) Dear Mr. Burnett: Enclosed is a fully executed duplicate original of the Industrial District Agreement between your firm and the City of La Porte, effective January 1, 2001, for the term expiring December 31,2007. I also enclose a certified copy of the City's approval ordinance, for your records. This year's negotiations went very smoothly and I wish to thank you for your cooperation. Both City Council and I appreciate the positive relationships with Industry that these agreements have fostered. If my office can ever be of assistance to your firm, please do not hesitate to call. Respectfully, C;:<~ T. r\-~,-<- Robert T. Herrera City Manager Enclosures P.O. Box 1115 · La Porte, Texas 77572-1115 . (281) -171-5020 -----...._,.~""~'" .. --.--..........,,---~..~. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Source of Funds: N/A Requested By: Doue: Kneupper Account Number: N/A Department: Plannine: Amount Budgeted: N/A Report: _Resolution: _Ordinance:.-X- Amount Requested: NI A Exhibits: A. Ordinances for: 1.) Industrial Distrid Agreement 2.) Water Serviee Agreement B. Iudustrial District Agreement C. Water Serviee Agreement D. Area Map Budgeted Item: _YES ..x....-NO SUMMARY &: ,RECOMMENDATION GSL Investments, Inc. has purchased property along S.H. 225 in the City's Battleground Indusbial District. A previous Industrial District Agreement executed between the City and John Frantz covered the property purchased by the company. However, it has been the City's practice to execute updated IDAs with new property owners as development occurs. By doing so, our Industrial District records remain accurate and concise. The original IDA with John Frantz will expire on December 31, 2000 and is fully assignable to the new property owner, GSL Investments, Inc. GSL is also in need of water service from the City. Council has approved a policy to provide potable water service to companies outside the corporate City limits and maintaining a current Industrial District Agreements with the City. GSL Investments, Inc., wishes to pursue water service under the terms and conditions offered by the City. Based on 15 on-site employees, the average daily demand is estimated to be 750 gallons. In addition, the applicant requests suffICient capacity (350 gpm) to facilitate the company's sprinkler system if required in the event of an emergency. GSL Investments, Inc. will pay one and one-half (1-%) times the City's current water rate. The term of the Water Service Agreement is for five (5) years. plus any renewals and extensions thereof. The Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if the city exercises the right of termination. The applicant is subject to the minimum administrative fee of $5,000 that has been received by the City. GSL Investments, Inc. will tie onto a recently installed 8w water main along the north side of S. H 225. Staff recommends approval of the updated Industrial District Agreement and the new Water Service Agreement as submitted. Action Required bv Council: Consider approval of ordinances authorizing the City to enter into an Industrial District Agreement as well as a Water Service Agreement with GSL Investments. fnc. Aooroved for City Council A2:enda 8~ T. \=\~ Robert T. Herrera, City Manager \l-"1-c?O Date EXHIBIT "A" (ORDINANCES) ORDINANCE NO. 2000-IDA-44 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH GSL INVESTMENTS, INC., FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. GSL INVESTMENTS, INC. has executed an industrial district agreement with the city of La Porte, for the term commencing January 1, 2001, and ending December 31, 2007, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. The Mayor, the City Manager, the city Secretary, and the city Attorney of the City of La Porte, be, and they are hereby, authorized and empowered to execute and deliver on behalf of the city of La Porte, the industrial district agreement with the corporation named in section 1 hereof. Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the city Council was posted at a place convenient to the public at the city Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. By: CITY OF LA PORTE 411.~~ Mayor ATTEST: Lf!J!}fJ/I~ {j. AIlf ar ha A. Gillett City Secretary Knox W. Askins, City Attorney 2 ORDINANCE NO. 2000- ~"'L{f"j AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND GSL INVESTMENTS, INC.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the city of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The city Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ~ OOO~ Of t/ f1 PASSED AND APPROVED, this 13th day of November, 2000. CITY OF LA PORTE By41X~~ orma L. Malone, Mayor ATTEST: Y~1 tULh~/}. ~itJ Martha A. Gillett city Secretary AP&~d Knox W. Askins, city Attorney 2 EXHIBIT "B" (INDUSTRIAL DISTRICT AGREEMENT) NO. 2000-IDA-# { { STATE OF TEXAS { { COUNTY OF HARRIS { INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and GSL Investments. Inc. (Jotun Paint) , a Texas business corporation, hereinafter called "COMPANY", WIT N E SSE T H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City Council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City'referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 24, 2000 I. City covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, City does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "C" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the un annexed area shall be conducted by City, at City's expense, by an independent appraiser of City's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide City with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties. which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III ( sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to city a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, Company shall pay to City an amount "in lieu of taxes" on Company's Property as of January 1st of the current calendar year ("Value Year"). D. Company agrees to render to City and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City if all of the Company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and 2. (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an amount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (c) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 in accordance with the applicable provisions of the Texas Property Tax Code. wi th the sum of 1, 2 and 3 reduced by the amount of City I S ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, unless extended for an additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2007, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, section 42.044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions,'plus (b) the total amount of the "in lieu of taxes" on the un annexed portions of Company's hereinabove described property which would be due to City in accordance with the 5 foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree with any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the city with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" payments which would be due hereunder on the basis of Company's valuations rendered and/or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the u.S. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" payment and total payment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including 6 expert op1n10n, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbitration Act (Chapter 171, "General Arbitration", Texas civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on Company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon ci ty and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If City enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and City agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. X. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. without such agreement neither party hereto would enter into this Agreement. In th~ event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 2001. By: Hi11croft Suite 604 stan, TX 77081 /7 I' " AP~'l~ a/ ~BY: G~ T H~ Kno~W. Askins Robert T. Herrera City Attorney City Manager City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 ~F LA PORTE BY:~. ~~ / orman L. Malone Mayor ATTEST: ~ dlMd./;h(j' Ci Y Secretary CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 Phone: Fax: (281) 471-1886 (281) 471-2047 8 "EXHIBIT A" (Metes and Bounds Description of Land) ~~/U~/4~~~ L~;!b :l1::l13326956 LAND DATA SURVEYS --r (f)lLAND DATA SURVEYS, ][NC. DON DENSON Reptere<l J-tofeJaioNl Und SUM!)'OI' File No. 98-o41Al July 20, 2000 (Not field staked this date) METES AND BOUNDS DESCRIPTION 2.5973.ACRE TRACT . A tract of land containing 2.5973 acres being part of and out of a 5.0000 Acre Tract out of a I 16.9341 Acre Tract being part of and out of a called 822.154 Acre Tract originally conveyed to E.I. DuPont De Nemours & Company as described in Volume 1318, Page 364 of the Harris County Deed Records (HCDR) in the Enoch Brinson Survey, Abstract No.5, in Harris County, Texas; said 2.5973 acres being more particularly described by metes and bounds as follows: COMMENCING at the most Southeast comer of said 5.0000 Acre Tract and 1.16.9341 Acre Tract, same being the Southwest corner of a called 3.808 Acre Tract as described in V-olume 5650, Page 23, HCDR, on the northerly line of State Highway 225, from which a found 5/8-inch iron rod bears witness at S 70 deg. 44' 34" E, a distance of 0.27 feet; THENCE, N 70 deg. 44' 34" W, along the northerly line of State Highway 225, for a distance of 145.38 feet to the POINT OF BEGINNING; THENCE, N 70 deg. 44' 34" W, continuing along the northerly line of State Highway 225, for a distance of204.62 feet to a S/8-inch iron rod set for the Southwesterly comer of the said 5.0000 Acre Tract; THENCE, N 17 deg. 37' 39" EJ along the westerly line of the said 5.0000 Acre Tract, for a distance of 599.29 feet to a S/8-inch iron rod set for co~er, same being the Northwesterly comer of the said 5.0000 Acre Tract; THENCE, S 70 deg. 44' 34" E, along the northerly line of the said 5.0000 Acre Tract, for a distance of 265.11 feet to a point for comer; THENCE, 852 deg. 53' 55" W, for a distance of 135.04 feet to a point for comer; THENCE) S 31 deg. 48' SO" W, for a distance of 83.63 feet to a point for comer; THENCE, S 17 deg. 37' 39" W, for a distance of252.29 feet to a point for comer; THENCE, S 70 deg. 44' 34" E, for a distance of38.02 feet to a point of comer; ~ P.o. Box 890021. . Houston, TeQI 77289-0021 ~(113)643h8S85 . f~(281)28~2 PAGE 133 ~ ~ ~/20a0 10:16 !'7 . ~/ 2813320950 LAND DATA SURVEVS PAGE 04 Page Two THENCE, S 17 deg. 37' 39" W, for a distance of 152.87 feet to the POINT OF BEGINNING, of a tract containing 2.5973 acres of land. ~ Date: '..-,. Don Denson, RPLS # 2068; STATE OF TEXAS ........_,-"""'--""'~-_..---_.~-------- r= L L.AND D..-\T.A. SlIJR'VEYS, liNC. DON DENSON ~ Registered Professional Land Surveyor File No. 98-041A2 (I) August 7, 2000 (Not field staked this date) METES AND BOUNDS DESCRIPTION 0.1533 ACRE TRACT - COMMON DRIVEWAY EASEMENT A tract of land containing 0.1533 acre being part of and out of a 5.0000 Acre Tract out of a 116.9341 Acre Tract being part of and out of a called 822.154 Acre Tract originally conveyed to E.I. DuPont De Nemours & Company as described in Volume 1318, Page 364 of the Harris County Deed Records (HCDR) in the Enoch Brinson Survey, Abstract No. 5, in Harris County, Texas; said 0.1533 acre being more particularly described by metes and bounds as follows: COMMENCING at the most Southeast comer of said 5.0000 Acre.Tract and 116.9341 Acre Tract, same being the Southwest comer of a called 3.808 Acre Tract as described in Volume 5650, Page 23, HCDR, on the northerly line of State Highway 225, from which a found 5/8-inch iron rod bears witness at S 70 deg. 44' 34" E, a distance of 0.27 feet; THENCE, N 70 deg. 44' 34" W, along the northerly line of State Highway 225, for a distance of 124.37 feet to the POINT OF BEGINNING; THENCE, N 70 deg. 44' 34" W, continuing along the northerly line of State Highway 225, for a distance of21.01 feet to a point for comer, same being the Southeasterly comer of a 2.5973 Acre Tract; THENCE, N 17 deg. 37' 39" E, along the easterly line of the said 2.5973 Acre Tract, for a distance of 152.87 feet to a point for comer; THENCE, N 70 deg. 44' 34" W, along a northerly line of said 2.5973 Acre Tract, for a distance of38.02 feet to a point for comer; THENCE, N 17 deg. 37' 39" E, along an easterly line of said 2.5973 Acre Tract, for a distance of 57.94 feet to a point for comer; . THENCE, S 72 deg. 22' 21" E, for a distance of 59.00 feet to a point for comer; THENCE, S 17 deg. 37' 39" W, for a distance of212.49 feet to the POINT OF BEGINNING, of ct containing 0.1533 acre of land. ..c~ 9E.}"~~ b.",.'~G\STElie" ~.'~ * '().. f',.. . . . -j' . . . . ............ . .. DON' DENSON .................~... <' \.0 2068 .::-.:Q: ... .~ ~"O 'i- .~.fESS\?..4. () . . .. . .~ ~ SURp . ox 890027 . Houston, Texas 77289-0027 Office: (713) 643-8585 . Fax: (281) 332-0950 Date: ~ S # 2068; STATE OF TEXAS ~ "EXHIBIT B" (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.) "EXHIBIT e" Page 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit "A" which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights-of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50' of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3: 1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. "EXHIBIT e" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto state Highway 225 or State Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and City. EXHIBIT SIC"~ (WATER SERVICE AGREEMENT) STATE OF TEXAS ~ COUNTY OF HARRIS ~ WATER SERVICE AGREEMENT This AGREEMENf made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation ofHanis County, Texas, hereinafter called "CITY", and GSL INVESTMENTS, INC., a Texas corporation, hereinafter called "COMPANY". I. COMPANY is the owner of certain real property which is situated in CITY'S Battleground Industrial District and not within the corporate limits of the CITY. CITY and COMPANY are parties to a current Industrial District Agreement. II. COMPANY is desirous of purchasing potable water wm CITY for usual hwnan domestic consumption and uses, and for limited industrial processes as hereinafter stated. Previous planning considerations for the long-range potable water supply of CITY did not include the needs of property located outside the city limits of CITY. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited water service. CITY agrees, however, to provide limited potable water service to COMPANY. For and in consideration of furnishing domestic potable water by CITY, the parties hereto agree as fullows, to-wit: III. COMPANY has made certain representations to CITY as to its number of employees, and/or its desired amotmt of potable water for limited industrial processes, as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. 2 Upon review of these representations, the City has determined the following: Number of Company Employees on site 15 Number of Contract Employees on site o Total on~site Employees 1~ Potable Water Approved for Domestic Use (Total o~site Employees times 50 gpd per employee) Potable Water Approved for Industrial Processes (gpd) 7'i0 o Total Amount of Potable Water Approved for Company (gpd) 750 IV. CITY has determined that adequate fucilities are available to CITY to furnish potable water to COMPANY based on the following terms and conditions, to~wit: (A) Company shall pay to CITY a one~time administrative connection charge of $ ~,OOO . (B) Potable water used for Industrial Processes shall be limited to the following processes: R11ilding Fire ~prinlder S~em (Mill{ Flow:::::; 150 gpm) (C) COMPANY shall file an application for water service with CITY'S Utility Billing Division and pay appropriate deposit and water meter charge. CITY shall be responsible for furnishing and installing meter at Company's expense. COMPANY shall be responsible for installing appropriate meter box to be approved by City. (0) Where applicable, COMPANY shall also pay to CITY $ NI A as a pro~rata reimbursement for installation of utility mains funded by other parties. (E) The total amount of potable water approved (average daily demand) is established at _150_ gallons per day. This number is based on an average of fifty (50) gallons per employee per day established by CITY, plus any amount approved for industrial processes. 3 (F) The average monthly demand of ??,R7S gallons is established by multiplying the average daily demand by a fuctor of 30.5, which shall be used to fucilitate service billings. (G) The cost of water up to the average monthly demand of ??,R7S gallons shall be one hundred fifty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (H) The cost of water for amounts used in excess of the established average monthly demand shall be two hundred percent (200%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (I) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of ?2,R7S gallons. Repeated consumption greater than the established average monthly demand may resuh in tennination of service. (J) CITY shall have the right to interrupt or temporarily suspend said water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of the citizens of La Porte. (K) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (L) The total cost ror the engineering design and construction of any potable water main, service line, back flow preventer, meter or other required appurtenances will be the responsibility of COMPANY. (M)COMP ANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. 4 (N) All plumbing installed by COMPANY connected to the domestic water line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and code enforcement personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system( s). CITY plumbing inspectors shall have the right to inspect any and all work related to the furnishing of potable water to COMPANY. (O)A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. (P) The potable water supply system will be segregated from any existing and future COMPANY fire protection system. (Q) There shall be no resale of the water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (R) COMPANY shall submit a certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. Company's development may be subject to certain additional requirements as descn'bed in Exhibit A. These requirements shall be shown on the site plan and approved by City. V. All expenses of the installation of the meter; service lines from the main to the meter; and from the meter to COMPANY'S fucilities, shall be solely at the expense of COMPANY. ,COMPANY shall own and maintain all service lines and plumbing fucllities beyond the meter. CITY shall own the meter. VI. CITY will have ownership and maintenance respol1Slbility fur its water mains, and service lines up to and including CITY'S water meter. In the event a State or Harris County license, pennit, or pennission to install the water main is revoked, or relocation or adjustment is required, CITY will not be respoDSlble for the expense of such relocation, adjustment, or replacement. 5 VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water :fucilities, and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notifY COMPANY in advance. CITY also agrees to fullow established health and safety policies in effect at COMPANY'S filcility. VIII. CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (10) days may resuh in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water supply is threatened. IX. Upon receipt of written notice oftennination, COMPANY sball have up to six (6) months to prepare for transition to another water supply. If the transition is not complete within said six-month period, CITY shall have the right to terminate water service at its sole discretion. X. In the event of any conflict between the terms and provisions of this Water Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Water Service Agreemmt shall contro~ to the extent of such conflict. The teon of this Agreement shall be for five years plus any renewals and extensions thereof However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right oftennination. 6 ENTERED INTO effective the ) 3 day of N () Ve h1 her- , 2000. By: Name: -Phi II W Ma+-Htew~ Title: Address~~,"'Qf CITY OF LA PORTE ATIEST: LJ4 . 1 t . I1U/Jit /0 . f Z litl ~. OF LA PORlE By: 4 ~~~/~ _, Martha A Gillett City Secretary Nonnan L. Malone Mayor ~d~ By: Qol~ l\ \~~ Knox W. Askins City Attorney Robert T. Herrera City Manager City Attorney PO Box 1218 LaPorte, TX 77572-1218 City of La Porte PO Box 1115 LaPorte, TX 77572-1115 Phone: (281) 471-1886 Fax: (281) 471-2047 Phone: (281)471-5020 Fax: (281) 471-7168 7 This is EXHlBIT A, consisting of I page, referred to in and part of the Water Serviu Agreement between CITY and COMPANY dated Initial: CITY COMPANY ADT)ITIONAI. RRQITTRRMF.NTS The Agreement is amended and supplemented to include the following agreement of the parties. COMPANY shall provide additional improvements as specifically set forth below. These agreements represent contractual undertakings of COMPANY, undertaken to induce CITY to sell water to COMPANY pursuant to the terms of the Water Service Agreement and/or Sanitary Sewer Service Agreement and this addendum. Said additional improvements undertaken by COMPANY are an integral part of the consideration by COMPANY for obtaining the provision of water and/or sanitary sewer service from CITY. 1) Storm Water Plan: For new development, COMPANY shall provide a Storm Water Management Plan that is approved by Harris County Flood Control District and CITY. COMPANY shall construct and maintain any storm water system as a condition of continued water and/or sewer service. 2) Beautification Efforts: COMPANY shall provide a Landscaping Plan subject to approval by CITY. COMPANY shall install and maintain landscaping along its existing developed frontage to State Hwy. 225 as per approved Landscaping PIan as a condition of continued water service. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Requested By: Dou!! Kneupper Source of Funds: N/A Department: Plannin!! Account Number: N/A Report: _Resolution: _Ordinance:-X- Amount Budgeted: N/A Amount Requested: NI A Exhibits: Budgeted Item: _YES -X-NO A. Ordinances for: 1.) Industrial District Agreement 2.) Water Service Agreement B. Industrial District Agreement C. Water Service Agreement D. Area Map SU~ARY " QJ;COMMEN}>ATION TCP/GSL Industrial Partners, L.P. has purchased property along S.H. 225 in the City's Battleground Industrial District. A previous Industrial District Agreement executed between the City and John Frantz covered the property purchased by the company. However, It has been the City's practice to execute updated IDAs with new property owners as development occurs. By doing so, our Industrial District records remain accurate and concise. The original IDA with John Frantz will expire on December 31, 2000 and is fully assignable to the new property owner, TCP/GSllndustrial Partners, L P. Additional1y, TCP/GSL has requested water service from the City. Council has approved a policy to provide water service to companies outside the corporate city limits and maintaining a current Industrial District Agreements with the City. TCP/GSL wishes to pursue water service under the terms of the policy. Based on 20 on-site employees, the average daily demand is estimated to be 1,000 gallons. TCP/GSL will pay one and one.half (1-%) times the City's current water rate. The term of the Water Service Agreement is for five (5) years, plus any renewals and extensions thereof. The Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if the city exercises the right of termination. The applicant is subject to the minimum administrative fee of $5,000 that has been received by the City. TCP/GSL will tie onto a recently installed 8" water main along the north side of S. H. 225. Staff recommends approval of the updated Industrial District Agreement and the new Water Service Agreement as submitted. Action Required bv COllncil: Consider approval of ordinances authorizing the City to enter into an Industrial District Agreement as welt as a Water Service Agreement with TCP/GSL Industrial Partners, L.P. ADDl'Oved for Citv Cou~en Al!endJl G<~ T. \t~ Robert T. Herrera, City Manager H" I-V U Date EXHIBIT "A" (ORDINANCES) ORDINANCE NO. 2000-IDA-45 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH TCP/GSL INDUSTRIAL PARTNERS, L.P., FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. TCP/GSL INDUSTRIAL PARTNERS, L.P. has executed an industrial district agreement with the City of La Porte, for the term commencing January 1, 2001, and ending December 31, 2007, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. The Mayor, the city Manager, the City Secretary, and the City Attorney of the City of La Porte, be, and they are hereby, authorized and empowered to execute and deliver on behalf of the City of La Porte, the industrial district agreement with the corporation named in Section 1 hereof. Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. By: CITY OF LA PORTE ~~~, Mayor ATTEST: 1:11 attI:~ d, I-lflL/!-- ar ha A. Gillett City Secretary Knox W. Askins, City Attorney 2 ORDINANCE NO. 2000-~14~ AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND TCP/GSL INDUSTRIAL PARTNERS, L.P.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the 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 ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ~ ooo,a JfI.{C/ PASSED AND APPROVED, this 13th day of November, 2000. ATTEST: L1~tU1IiCu tt -Illlfl Mart a A. Gille t City Secretary AP~~~ L Knox W. Askins, City Attorney CITY OF LA PORTE By: ~v Mayor 2 EXHIBIT "B" (INDUSTRIAL DISTRICT AGREEMENT) NO. 2000-IDA-~ { { STATE OF TEXAS { { COUNTY OF HARRIS { INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and TCP /GSL Industri!3-1 Partnp.T\3, To. P (Code 3) , a Texas partnership ~~~J;eft, herel.nafter called "COMPANY", WIT N E SSE T H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, ,pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial juriSdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City Council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City 'referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 24, 2000 I. City covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, City does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "C" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by City, at City's expense, by an independent appraiser of City's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide city with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's "Rendition"). Company may file such Rendition on a Harris County ApPFaisal District rendition form, or similar form. The properties which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection 0, of this Paragraph III (sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, Company shall pay to City an amount "in lieu of taxes" on Company's Property as of January 1st of the current calendar year ( "Value Year"). D. Company agrees to render to City and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City if all of the Company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and 2. (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an amount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of city and appraised by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (c) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 in accordance with the applicable provisions of the Texas Property Tax Code. wi th the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, unless extended for an additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2007, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, section 42.044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions,-plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the 5 foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make payment to city of any additional payment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree wi th any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" payments which would be due hereunder on the basis of Company's valuations rendered and/ or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the u.S. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" payment and total payment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including 6 expert oplnlon, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbitration Act (Chapter 171, "General Arbitration", Texas Civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on Company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon ci ty and Company, and upon Company's successors and ass igns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If City enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and City agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. X. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. Without such agreement neither party hereto would enter into this Agreement. In the, event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 2001. By: Partners, L.P. (COMPANY) 6300 Hi11croft. Suite 604 Houston, TX 77081 ATTEST: Lf:a 4MLL /ir4- it Secre ary By:~F LA PORTE rm~ Mayor APP.~ovEip; / // ,,/ /{ .~v. ~ .,' / f/fl Knox W. skins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 By: G~ T\ t{~ Robert T. Herrera City Manager Phone: Fax: (281) 471-1886 (281) 471-2047 CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 8 "EXHIBIT A" (Metes and Bounds Description of Land) r L __ __L~ JI . . ~DDATASURVEYS,INc. DON DENSON Rqiste~ Professional Land Surveyor File No. 98-041A4 November 1, 2000 (Not field staked this date) METES AND BOUNDS DESCRIPTION 1.2494 ACRE TRACT A tract of land containing 2.2494 acres being part of and out of a 5.0000 Acre Tract out of a 116.9341 Acre Tract being part of and out of a called 822.154 Acre Tract originally conveyed to E.I. DuPont De Nemours & Company as described in Volume 13 t 8, Page 364 of the Hanis County Deed Records (HCDR) in the Enoch Brinson Survey, Abstract No.5, in Harris County, Texas; said 2.2494 acres being more particularly described by metes and bounds as follows: BEGINNING at the most Southeast comer of said 5.0000 Acre Tract and 116.9341 Acre Tract, same being the Southwest corner of a called 3.808 Acre Tract as described in Volume 5650, Page 23, HCOR, on the northerly line of State Highway 225, from which a found SIH-inch iron rod bears witness at S 70 deg. 44' 34" E, a distance of 0.27 feet; THENCE, N 70 deg. 44' 34" W, along the northerly line of State Highway 225, for a distance of 124.37 feet to a point for comer, same being the Southeast comer ofa 0.1533 Acre Tract; THENCE, N 17 deg. 37' 39" E, along the easterly line of the said 0.1533 Acre Tract, for a distance of 212.49 feet to a point for comer; THENCE, N 72 deg. 22' 21" W, for a distance of 59.00 feet to a point for comer; THENCE, N 17 deg. 37' 39" E, continuing along the easterly line of said 0.1533 Acre Tract, for a distance of t 94.35 feet to an angle point; THENCE, N 31 deg. 48' 50" E, for a distance of 83.63 feet to an angle point; THENCE, N 52 deg. 53' 55" E, for a distance of 135.04 feet to the Northeast comer of the aforesaid 2.5973 Acre Tract. on the north line of the aforementioned 5.0000 Acre Tract; THENCE, S 70 deg. 44' 34" E, along the north line of said 5.0000 Acre Tract, for a distance of 137.56 feet to a Sl8-inch iron rod set for the Northeast comer of said 5.0000 Acre Tract; P.O. lox 1190027 . Houfton, Texas 77189-0021 ~(713)'4~5IS . f~(281)28~2 ~._&,__ ut~n nL~~ n~~n'7~t"'Tn7 .... 'nT _._._~ZL7a ITT ~ ~ Page Two THENCE, S 17 deg. 37' 39" W, along the easterly line of said 5.0000 Acre Tract, for a distance of 144.70 feet to a Sl8-inch iron rod set for comer; THENCE, S 88 deg. 45' 39" W, continuing along the easterly line of said 5.0000 Acre Tract, for a distance of 55.64 feet to a Sl8-inch iron rod set for comer; THENCE, S 17 deg. 37' 39" W, continuing along the easterly line of said 5.0000 Acre Tract, for a distance of 435.1 0 feet to the POINT OF BEGINNING, of a tract containing 2.2494 acres ofland. Date: '1-'" ,.. Don Denson, M ~ RPLS # 2068; 8T ATE OF TEXAS pt.,.) Pefc _ _ _~ ':XIh... r-I"^'-*'"'~ ... I ,.,,,y ""'-....,.., ro"".~ ____ -__ r L L.AND D~~T~-\ SUR\rEYS, liNC. DON DENSON Registered Professional land Surveyor ~ File No. 98-041A2 (I) August 7, 2000 (Not field staked this date) METES AND BOUNDS DESCRIPTION 0.1533 ACRE TRACT - COMMON DRIVEWAY EASEMENT A tract of land containing 0.1533 acre being part of and out of a 5.0000 Acre Tract out of a 116.9341 Acre Tract being part of and out of a called 822.154 Acre Tract originally conveyed to E.I. DuPont De Nemours & Company as described in Volume 1318, Page 364 of the Harris County Deed Records (HCDR) in the Enoch Brinson Survey, Abstract No.5, in Harris County, Texas; said 0.1533 acre being more particularly described by metes and bounds as follows: COMMENCING at the most Southeast comer of said 5.0000 Acre Tract and 116.9341 Acre Tract, same being the Southwest comer of a called 3.808 Acre Tract as described in Volume 5650, Page 23, HCDR, on the northerly line of State Highway 225, from which a found 5/8-inch iron rod bears witness at S 70 deg. 44' 34" E, a distance of 0.27 feet; THENCE, N 70 deg. 44' 34" W, along the northerly line of State Highway 225, for a distance of 124.37 feet to the POINT OF BEGINNING; THENCE, N 70 deg. 44' 34" W, continuing along the northerly line of State Highway 225, for a distance of 21.0 1 feet to a point for comer, same being the Southeasterly comer of a 2.5973 Acre Tract; THENCE, N 17 deg. 37'- 39" E, along the easterly line of the said 2.5973 Acre Tract, for a distance of 152.87 feet to a point for comer; THENCE, N 70 deg. 44' 34" W, along a northerly line of said 2.5973 Acre Tract, for a distance of 38.02 feet to a point for comer; THENCE, N 17 deg. 37' 39" E, along an easterly line of said 2.5973 Acre Tract, for a distance of 57.94 feet to a point for comer; . THENCE, S 72 deg. 22' 21" E, for a distance of 59.00 feet to a point for comer; THENCE, S 17 deg. 37' 39" W, for a distance of212.49 feet to the POINT OF BEGINNING, of ct containing 0.1533 acre of land. A~ .9f..r€::t.; b..".- ~G\STEIl~-. ~.' ~~ * "'<>'. r..... . ~J' . . . . ........... . . . DON . DENS~~. . . . .............. . (' \.0 2068 .;:':'e: 4.~ ~.O '1- .~f"ESS\?..~ () ......~~ S U Rp' . ox 890027 . Houston, Texas 77289-6027 Office: (713) 643-8585 . Fax: (281) 332-0950 Date: ~ S # 2068; STATE OF TEXAS ~ "EXHIBIT B" (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.) "EXHIBIT e" Page 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit "A" which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights-of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50' of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3: 1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. "EXHIBIT e" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto State Highway 225 or state Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto Fairmont Parkway shall be subj ect to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and City. EXHIBIT SIC"~ (WATER SERVICE AGREEMENT) STATE OF TEXAS ~ COUNTY OF HARRIS ~ WATER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and TCP/GSL INDUSTRIAL PARlNERS, L.P., a Texas partnership, hereinafter called "COMPANY". I. COMPANY is the owner of certain real property which is situated in CITY'S Battleground Industrial District and not within the corporate limits of the CITY. CITY and COMPANY are parties to a current Industrial District Agreement. II. COMPANY is desirous of purchasing potable water from CITY for usual human domestic consumption and uses, and fur limited industrial processes as hereinafter stated. Previous planning considerations for the long-range potable water supply of CITY did not include the needs of property located outside the city limits of CITY . COMPANY recognizes that CITY cannot at this time provide pennanent and unlimited water service. CITY agrees, however, to provide limited potable water service to COMPANY. For and in consideration offumishing domestic potable water by CITY, the parties hereto agree as fullows, to-wit: III. COMPANY has made certain representations to CITY as to its number of employees, and/or its desired amount of potable water for limited industrial processes, as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. 2 Upon review of these representations, the City has determined the following: Number of Company Employees on site 20 Number of Contract Employees on site o Total on.site Employees 20 Potable Water Approved for Domestic Use (Total OJl.site Employees times 50 gpd per employee) 1,000 Potable Water Approved for Industrial Processes (gpd) o Total Amount of Potable Water Approved for Company (gpd) 1,000 IV. CITY bas determined that adequate facilities are available to CITY to furnish potable water to COMPANY based on the following terms and conditions, to-wit: (A) Company shall pay to CITY a one-time administrative connection charge of $ :';000 . (B) Potable water used for Industrial Processes shall be limited to the following processes: N/ A (C) COMPANY shall:file an application for water service with CITY'S Utility Billing Division and pay appropriate deposit and water meter charge. CITY shall be responsible for furnishing and installing meter at Company's expense. COMPANY shall be responsible for installing appropriate meter box to be approved by City. (D) Where applicable, COMPANY shall also pay to CITY $ N/ A as a pro.rata reimbursement for installation of utility mains funded by other parties. (E) The total amount of potable water approved (average daily demand) is established at LOOO_ gallons per day. This number is based on an average of fifty (50) gallons per employee per day established by CITY, plus any amount approved for industrial processes. 3 (F) The average monthly demand of 10,500 gallons is established by multiplying the average daily demand by a factor of 30.5, which shall be used to facilitate service billings. (G) The cost of water up to the average monthly demand of 10, '\00 gallons shall be one hundred fifty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (H) The cost of water for amOlmts used in excess of the established average monthly demand shall be two hundred percent (2000!cl) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (I) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of 10,'\00 gallons. Repeated conswnption greater than the established average monthly demand may result in termination of service. (1) CITY shall have the right to interrupt or temporarily suspend said water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of the citizens of La Porte. (K) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (L) The total cost for the engineering design and construction of any potable water main, service line, back flow preventer, meter or other required appurtenances will be the responsibility of COMPANY. (M)COMP ANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. 4 (N) All plumbing installed by COMPANY connected to the domestic water line from CITY~ shall meet all applicable State of Texas and CITY plwnbing code requirements. CITY'S engineering and code enfOrcement personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY plumbing inspectors shall have the right to inspect any and all work related to the furnishing of potable water to COMPANY. (0) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. (P) The potable water supply system will be segregated from any existing and future COMPANY fire protection system. (Q) There shall be no resale of the water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (R) COMPANY shall submit a certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. Company's development may be subject to certain additional requirements as described in Exhibit A. These requirements shall be shown on the site plan and approved by City. V. All expenses of the installation of the meter; service lines from the main to the meter; and from the meter to COMPANY'S fucilities, shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own the meter. VI. CITY will have ownership and maintenance responsibility for its water mains, and service lines up to and including CITY'S water meter. In the event a State or Harris County license, permit, or permission to install the water main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. 5 VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water facilities. and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notify COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S fucility. VIII. CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereofby COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (10) days may resuh in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water supply is threatened. IX. Upon receipt of written notice oftennination, COMPANY shall have up to six (6) months to prepare for transition to another water supply. If the transition is not complete within said six-month period, CITY shall have the right to tenninate water service at its sole discretion. X. In the event of any conflict between the terms and provisions of this Water Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Water Service Agreement sbaJl contro~ to the extent of such conflict. The term of this Agreement shall be for five years plus any renewals and extensions thereof: However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right of termination. 6 ENTERED INTO effective the I '3 day of 11 ov j,An!:wv , 2000. By: Name: 'Phil I if dla.tfneU)5 Title' AddreSS~~-ffJ ~/~o~D~e. (PtJ4 I CITY OF LA PORTE ATTEST: vtr;t2ftklr ,ItCtil Martha A. Gillett City Secretary d ~Jf ! fA/, I By: ~~~ Noonan L. Malone Mayor By: 8~ <\~ ~ Knox W. Askins City Attorney Robert T. Herrera City Manager City Attorney PO Box 1218 LaPorte, TX 77572-1218 City of La Porte PO Box 1115 La Porte, TX 77572-1115 Phone: (281) 471-1886 Fax: (281) 471-2047 Phone: (281)471-5020 Fax: (281) 471-7168 , . 7 ~ is EXlDBIT A, consisting of 1 page, rererred to in and part of the Water Senice Agreement between CITY and COMPANY dated CITdt!~: COMPANY AnnTTTONAT. RRQTffRRMF.NTS The Agreement is amended and supplemented to include the following agreement of the parties. COMPANY shall provide additional improvements as specifically set forth below. These agreements represent contractual undertakings of COMPANY, undertaken to induce CITY to sell water to COMPANY pursuant to the terms of the Water Service Agreement and/or Sanitary Sewer Service Agreement and this addendum. Said additional improvements undertaken by COMPANY are an integral part of the consideration by COMPANY for obtaining the provision of water and/or sanitary sewer service from CITY. 1) Storm Water Plan: For new development, COMPANY shall provide a Storm Water Management Plan that is approved by Harris County Flood Control District and CITY. COMPANY shall construct and maintain any storm water system as a condition of continued water and/or sewer service. 2) Beautification Efforts: COMPANY shall provide a Landscaping Plan subject to approval by CITY. COMPANY shall install and maintain landscaping along its existing developed frontage to State Hwy. 225 as per approved Landscaping Plan as a condition of continued water service. NO. 2000-IDA-~ STATE OF TEXAS COUNTY OF HARRIS { { { { { INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and TCP/C::SL Indllstri<'ll P<'lrrm'rs. T. P. (rod!" ::l) ,a Texas partnership corpora-t.-ion, hereinafter called "COMPANY", WIT N E SSE T H: WHEREAS, it is the established policy of the City Council of the City of La porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City 'referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 24, 2000 I. City covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, City does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "C" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by city, at city's expense, by an independent appraiser of City's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. III. A. On or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide city with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties. which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III ( sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, Company shall pay to City an amount "in lieu of taxes" on company's Property as of January 1st of the current calendar year ("Value Year"). D. Company agrees to render to City and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City if all of the Company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and 2. (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an amount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (c) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 in accordance with the applicable provisions of the Texas Property Tax Code. wi th the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter unti I December 31, 2007, unless extended for an additional period or periods of time upon mutual consent of Company and ci ty as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2007, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, Section 42.044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or Obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions,-plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the 5 foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make paYment to City of any additional paYment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree with any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" paYments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" payments which would be due hereunder on the basis of Company's valuations rendered and/ or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the u.S. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" paYment and total paYment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including 6 expert opinion, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subj ect only to judicial review as may be available under the Texas General Arbitration Act (Chapter 171, "General Arbitration", Texas Civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on Company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon Ci ty and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If City enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and City agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. X. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. Without such agreement neither party hereto would enter into this Agreement. In the-event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 2001. By: Partners L.P. (COMPANY) 6300 Hi11croft, Suite 604 Houston, TX 77081 q)jT: , Iltt/;L1/it#ttt! C t Secretary By: ~T~ 4rman L. Ma~ Mayor -", /'" . ,,/ APP,R9jE;..D. : /._/'. / ;J V ~ [ C' Knox W. Askins City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 ...By: GL- II \\~ Robert T. Herrera City Manager Phone: Fax: (281) 471-1886 (281) 471~2047 CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 8 "EXHIBIT A" (Metes and Bounds Description of Land) r L @LANDDATASURVEYS,INC. DON DENSON Re,isterM Professional WKI SurvtyOr ~ File No. 98-04IA4 November 1,2000 (Not field staked this date) MET~S AND BOUNDS DESCRIPTION 1.2494 ACRE TRACT A tract of land containing 2.2494 acres being part of and out of a 5.0000 Acre Tract out ofa 116.9341 Acre Tract being part of and out ofa called 822.154 Acre Tract originally conveyed to E.I. DuPont De Nemours &. Company as described in Volwne 1318, Page 364 of the Harris County Deed Records (HCDR) in the Enoch Brinson Survey, Abstract No.5, in Harris County, Texas; said 2.2494 acres being more particularly described by metes and bounds as follows: BEGINNING at the most Southeast comer of said 5.0000 Acre Tract and 116.9341 Acre Tract, same being the Southwest corner of a called 3.808 Acre Tract as described in Volume 5650, Page 23, HCDR. on the northerly line of State Highway 225, from which a found SIB-inch iron rod bears witness at S 70 deg. 44' 34" E, a distance of 0.27 feet; THENCE, N 70 deg. 44' 34" W, along the northerly line of State Highway 225, for a distance of 124.37 feet to a point for comer, same being the Southeast corner ofa 0.1533 Acre Tract; TIlENCE, N 17 deg. 37' 39" E, along the easterly line of the said 0.1533 Acre Tract, for a distance of 212.49 feet to a point for (:omer; THENCE, N 72 deg. 22' 21" W, for a distance of 59.00 feet to a point for comer; THENCE, N 17 deg. 37' 39" E, continuing along the easterly line of said 0.1533 Acre Tract, for a distance of 194.35 feet to an angle point; THENCE, N 31 deg. 48' 50" E, for a distance of83.63 feet to an angle point; THENCE, N 52 deg. 53' 55" E, for a distance of 135.04 feet to the Northeast comer of the aforesaid 2.5973 Acre Tract, on the north line of the aforementioned 5.0000 Acre Tract; THENCE, S 70 deg. 44' 34" E, along the north line of said 5.0000 Acre Tract, for a distance of 131.56 feet to a 5/8-inch iron rod set for. the Northeast comer of said 5.0000 Acre Tract; r.0.1o.119OO21 . Houtton, Texas n18~27 ~(113)'4~Sa5 . fac(281)2'~2 ~ ___...__ ~.L...I_ _.........- nr""r'n7t:"C' Tn.,. ',l7/7Cl/TT tlf -n 1 Page Two THENCE, S 17 deg. 37' 39" W, along the easterly line of said 5.0000 Acre Tract, for a distance of 144.70 feet to a S/8-inch iron rod set for comer; THENCE, S 88 deg. 45' 39" W, continuing along the easterly line of said 5.0000 Acre Tract, for a distance of 55.64 feet to a 5/8.inch iron rod set for comer; THENCE, S 17 deg. 37' 39" W, continuing along the easterly line of said 5.0000 Acre Tract, for a distance of 43S.1 0 feet to the POINT OF BEGINNING, of a tract containing 2.2494 acres of land. Date: 'I-/- ,. DonDe~o~ ~ ~ RPLS # 2068; ST ATE OF TEXAS PI.').'Ie -- ~, -.-......-- ......- -.. .- ---------- r= L~L\ND DA-\T~-\ SUR\,TEYS, KNC. DON DENSON ~ Registered Professional Land Surve)'or File No. 98-041 A2 (l) August 7, 2000 (Not field staked this date) METES AND BOUNDS DESCRIPTION 0.1533 ACRE TRACT - COMMON DRIVEWAY EASEMENT A tract of land containing 0.1533 acre being part of and out of a 5.0000 Acre Tract out ofa t 16.9341 Acre Tract being part of and out ofa called 822.154 Acre Tract originally conveyed to E." DuPont De Nemours & Company as described in Volume 1318, Page 364 of the Harris County Deed Records (HCDR) in the Enoch Brinson Survey, Abstract No.5, in Harris County, Texas; said 0.1533 acre being more particularly described by metes and bounds as follows: COMMENCING at the most Southeast comer of said 5.0000 Acre Tract and 116.9341 Acre Tract, same being the Southwest comer of a called 3.808 Acre Tract as described in Volume 5650, Page 23, HCDR, on the northerly line of State Highway 225, from which a found 5/8-inch iron rod bears witness at S 70 deg. 44' 34" E, a distance of 0.27 feet; THENCE, N 70 deg. 44' 34" W, along the northerly line of State Highway 225, for a distance of 124.37 feet to the POINT OF BEGINNING; THENCE, N 70 deg. 44' 34" W, continuing along the northerly line of State Highway 225, for a distance of21.01 feet to a point for comer, same being the Southeasterly comer of a 2.5973 Acre Tract; THENCE, N 17 deg. 37' 39" E, along the easterly line of the said 2.5973 Acre Tract, for a distance of 152.87 feet to a point for comer; THENCE, N 70 deg. 44' 34" W, along a northerly line of said 2.5973 Acre Tract, for a distance of 38.02 feet to a point for comer; THENCE, N 17 deg. 37' 39" E, along an easterly line of said 2.5973 Acre Tract, for a distance of 57.94 feet to a point for comer; . THENCE, S 72 deg. 22' 21" E, for a distance of 59.00 feet to a point for comer; Date: ~ S # 2068; STATE OF TEXAS "EXHIBIT B" (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.) "EXHIBIT e" Page 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit "A" which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights-of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50' of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3: 1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. "EXHIBIT e" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto State Highway 225 or State Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and city. REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Novemb 2000 Appropriation Requested By: John Joerns Source of Funds: Department: Administration Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Ordinance No. 2000- Amount Requested: Exhibits: Exhibits: Application for Boards and Commissions Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Due to the resignation of a Board member, the Board of Directors of La Porte Reinvestment Zone currently has one vacancy, Position 5. If approved by City Council, the Position 5 Board member would serve until July 12, 2001, which is the term for Position 5, set by Ordinance #99-2325. At that time Council will appoint (or reappoint) Positions 1,3,5,7, and 9. Action ReQuired bv Council: Consider approval of Ordinance No. Porte Reinvestment Zone Number One. appointing a member of the Board of Directors of City of La Approved for City Council Aeenda Q~ T: \-\~rc- Robert T. Herrera, City Manager H-"1-()U Date ORDINANCE NO. 2000- 'dJflfq AN ORDINANCE APPOINTING A MEMBER TO THE BOARD OF DIRECTORS OF THE CITY OF LA PORTE REINVESTMENT ZONE NUMBER ONE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council of the City of La Porte hereby appoints the following member to the Board of Directors of the City of La Porte Reinvestment Zone Number One, filling the remaining unexpired. term of Guy Rankin, beginning on the effective date hereof, and expiring on July 12th of the year indicated, or until their successor shall have been duly appointed and qualified: Position 5 NORMAN S. COOK 2001 Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the city Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. CITY OF LA PORTE BY:~~~ rman L. Mal e Mayor ---"-- ~ 0 CO - J., Llli?) ATTEST: vfYl fIIl/ItL II 4(fl: ( Martha A. Gi lett City Secretary A~<<J Knox W. Askins City Attorney 2 CITY OF LA PORTE APPLICATION FOR CITY BOARDS I COMMISSIONS NOTE: As an applicant for a City Board or Commission, your name, address andjphot1JiJ.wnl>ef may be available to the press and the public. You have the right to requ~tluu~xclusi6ri of certain information from press and public RCce$S. All other information will remain confidential. You will be contacted before any action is taken on your appointment Incumbents whose terms expire are automatically considered for reappointment, upon request. A member who is absent for more than 25% of called meetings, for other than medical reasons, will be subject to removal by City Council. Final decisions on appointment and reappointment of members of Boards and Commissions rests with the City Council. APPLICANT MUST BE A CJ'flZEN OF THE UNITED STATES; A RESIDENT OF THE CITY OF LA PORTE; AND A QUALIFIED VOTER IN THE CITY OF LA PORTE. MEMBERS OF THE PLANNING AND ZONING COMMISSION MUST ALSO BE RESIDENTS OF ONE OF THE CITY COUNCIL DISTRICTS FROM WHICH THEY ARE APPOINTED. Please type or vrin! clearly Name: e ook Last Address: (;;30 City: LA ~P-7e- /)J Dl2.MAI'\/ First II /3Ti State/Zip Code: fK s DATE: /0 - ~-OO Phone (J:f):Jtd! . '170 - ~ bCb MJ-f)/ - f.{7 (,- 22-10 MI 77S7( V or N Are you a registered voter in the La Porte City limits?: @ or Did you vote in the last City election?: N Please indicate ~our nreferenee bv number. 1-2-3. etc. ADVISORY BOARDS AND COMMISSIONS Airport Advisory Board Fire Code Review Committee DECISION MAKING BOARDS AND COMMISSIONS Planning and Zoning Commission Zoning Board of Adjustment Civil Service Commission SEPARATE LEGAL ENl1TIES La Porte Area Water Authority \. ) I l\ , Other f , I the undersigned am interested in serving on one of the above Boards I Commissions as ~.~ Signature of Applicant /C;.- 30~ 00 Date Revised April 1999 BACKGROUND INSTITUTION L \) \i'bJ-l Pi ~Og.-r t ' dliX' f~ lA r/. :s f\ c\ '(J >' G,l~6~ ~ EDUCATION CITY AND STATE DATE LAST ATIENDED MAJOR 1 Professional Background: \ '.J '6ft. ~ \J P .~ , - :s yR Commu..'lity Activities / Hobbies: . L~ et-IAvY\.e(?IL C)/~ l~ ~"c*: T E f\fwC\. ,'.f t'Oi~"VV'1~RCE j / ('..' YT Ac;.f,C I I {~o lAI2Y f C:;'P,~tJE{tIN b 13 OAlf/vb ...-r References: (include address and phone number) Mo rf.J6iL. fR. .,." b F t:.d'!1\I D 1. 2. 3. Additional Pertinent Information: Goals I Objectives: fu ;i(;[p ;::r;.vf;.2,;)Ve:.. elTIL~NS 'AOi.-( b 4 8,~(~ ';-J/~EA r~1K nLL Attachments: YES NO You are welcome to attach additional information, such as, resumes, letters, certifications, etc. that further describe your professional and personal background. -- Please return this form and any attachments to: City of La Porte City Secretary's Office PO Box 1115 La Porte, Texas 77572-1115 Revised April 1999 .QUINN & LAMINACK Benjamin L. Hall, III, PhD Attorney at Law p rc (. rr.' 1 ~.: ~~ n o,r'.r...... 0) 2nD- 0 CI 1\ L '\., L ~ iJ .;.. iU -J oj 'v October 24,2000 Knox Askins, City Attorney City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 RE: City of Wharton, et al v. HOllston Lighting & Power Co., et at Dear Former Class Member: As you know, Judge Wooldridge decertified the class in the above referenced matter. You should also know that nearly forty of the forty-seven class member cities passed resolutions and/or authorized our firm to represent their legal interests in the event of decertification. Pursuant to that authorization, we have filed lawsuits on behalf of all forty-seven class member cities in order to protect your legal interests. Because many of the issues involved in the pending lawsuits concern contract issues, we anticipate that attorney's fees will be awarded in addition to contract damages. However, in order to clarify the terms of our legal representation, we are proposing and providing to you the attached Power of Attorney which we would ask your City to authorize and execute. Please return same to us in the enclosed stamped, self-addressed envelope. Under the terms of the enclosed Agreement, your City will not be obligated to pay any expenses and/or attorney's fees unless a recovery is obtained. If a recovery is obtained, our fees will be paid solely out of the recovery at the greater of the amount awarded by the court and/or jury for attorney's fees or forty percent (40%) of the gross recovery. Under the terms of the Agreement, your City will never be required to pay any costs, expenses or fees which are not payable out of actual amounts recovered by our firm on your behalf. Time is of the essence - - we need the attached Power of Att ney returned to us as quickly as possible. BLH/sb 2300 Lyric Centre Building . 440 Louisiana . Houston, Texas 77002 . Telecopier (713) 222-6903 . Telephone (713) 223-1000 ASKINS & ARMSTRONG. P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS JOHN D. ARMSTRONG TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 CHARLES R. HUBER, JR. BOARD CERTIFIED' CIVIL TRIAL LAW TEXAS BOARD OF LEGAL SPECIALIZATION CLARK T. ASKINS October 31, 2000 Ms. Martha A. Gillett City Secretary City of La Porte City Hall La Porte, Texas Re: City of Wharton, Et Al vs. Houston Lighting & Power Company, Et AI. Dear Martha: I enclose letter from O'Quinn & Laminack law firm, together with proposed contract approval ordinance, and proposed letter agreement between the law firm and the City of La Porte. Please place this matter on the November 13th Council agenda. ~rY truly, Knox W. Askins City Attorney City of La Porte KWA:sw Enclosures cc: Mr. Benjamin L. Hall, III O'Quinn & Laminack 2300 Lyric Centre Building 440 Louisiana Houston, TX 77002 ASKINS & ARMSTRONG. P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-12/8 KNOX W. ASKINS ,JOHN D. ARMSTRONG TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 CHARLES R. HUBER. ,JR. BOARD CERTIFIED - CIVIL TRIAL LAW TEXAS BOARD OF LEGAL SPECIALIZATION CLARK T. ASKINS November 27, 2000 Mr. Benjamin all, III O'Quinn & minack 2300 L lC Centre Building 440 ouisiana H ston, TX 77002 Re: Houston Lighting & Power Company Class Action Litigation Dear Mr. Hall: As requested, I enclose certified copy of City of La Porte Ordinance No. 2000-2450, passed and approved by La Porte City Council on November 13, 2000, with attached copy of letter agreement retaining Benjamin L. Hall, III and the firm of John M. O'Quinn & Associates, L.L.P. to represent client interests, grant power of attorney and contingent fee contract, which has been executed by appropriate officials of the City of La Porte. Please send me a fully executed copy for the Yo.:urs})'e U Knox W. Askins City Attorney city of La Porte files. KWA:sw Enclosure cc: Ms. Martha A. Gillett yity Secretary vCity of La Porte City Hall La Porte, Texas ORDINANCE NO. 2000-~~SD AN ORDINANCE AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE LAW FIRM OF JOHN M. O'QUINN AND ASSOCIATES, L.L.P.; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City of La Porte has heretofore been an unnamed class member in the class action suit styled cities of Wharton, Pasadena and Galveston vs. Houston Lighting & Power Company; and WHEREAS, in the cities of Wharton, Pasadena and Galveston vs. Houston Lighting & Power Company case it was determined by a jury that Houston Lighting & Power Company had perpetrated fraud and breached its franchise contract with the cities of Wharton, Galveston and Pasadena; and WHEREAS, the jury awarded over $34 million to these Texas cities for such conduct and breach; and WHEREAS, that class action has now been decertified without resolution of the cities' claims; and WHEREAS, the City Council, acting as good steward, desires to protect the claims and interests possessed by the City; now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. That the City Council of the City of La Porte hereby authorizes Benjamin L. Hall, III and the law firm of John M. Q'Quinn and Associates, L.L.P. to prosecute any and all claims on behalf of the City of La porte pursuant to the terms of the agreement attached hereto as Exhibit "A". The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the city to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was ~ODO J.~ 50 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 resolution and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 3. This Ordinance shall be effective from and after its passage and approval. PASSED AND APPROVED this 13th day of November, 2000. By: ~TE N rman L. Mai~- Mayor ATTEST: l{[f)i1;()&- /}. lu<<! Mart a A. Gillett City Secretary AP~D: V6/&'lri~ Knox W. Askins City Attorney 2 ASKINS & ARMSTRONG. P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P.O. BOX 121B LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS ..JOHN D. ARMSTRONG TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 CHARLES R. HUBER. ..JR. BOARD CERTIFIED, CIVIL TRIAL LAW TEXAS BOARD OF LEGAL SPECIALIZATION CLARK T. ASKINS January 15, 2001 Ms. Martha A. Gillett City Secretary city of La Porte City Hall La Porte, Texas Re: HL&P Class Action Litigation Dear Martha: I enclose original signed copy of agreement between City of La Porte and the law firm of John M. O'Quinn and Associates, L.L.P. Please attach this original copy to ~ance No. 2000-2450. I ur~ve~ truly, ox w~skins City Attorney City of La Porte KWA:sw Enclosure EXHIBIT "A" LETTER AGREEMENT RETAINING BENJAMIN L. HALL, III AND THE FIRM OF JOHN M. O'QUINN & ASSOCIATES, L.L.P. TO REPRESENT CLIENT INTERESTS, GRANT POWER OF ATTORNEY AND CONTINGENT FEE CONTRACT SCOPE The City of La Porte ("City") hereby n:tains and cmploys Bcnjamin L. Hall, III and Jolm M. O'Quinn & Associates, L.L.P., ("Attorneys") to sue for and recover all fecs, damages, claims, and compensation to which the City may be entitled as well as to compromise and settle all claims that the City may have against Houston Lighting & Power Company, Reliant Energy, Inc., and all their subsidiaries, alTiliates, predeccssors, succcssors, and assigns, ("thc Companies"), that had or have facilities, equipment, pipelines, uses, transmissions, franchises, or otht:r prt:sences upon, on, under, above, across, through, or in the public rights of way or property of the City or which use such facilities within the City and for which a fee is due or owing in law, contract or equity to the City. It is expressly agreed and understood that the Attorneys' representation is limited to representation of the City relating to electrical power debts or obligations and not to any other matter, person, entity, or enterprise not specifically named herein as a client. Further, the Attorncys' rcpresentation of the City is limited to the specific matters described herein and the City does not expect nor will the Attorneys pursue any other matters not specilically covered by this Agreement. FEES In consideration of the Attorneys' work on behalf of City, the City hereby assigns, grants, and conveys to the Attorneys the following present undivided interest in all claims or causes of action that are covered by this Agreement as a reasonable contingent fee for the Attorneys' services and said contingent fee will be figured on the total gross recovery of settlement. The Attorneys will possess an interest of the greater of the total attorney's fees awarded by the Court and/or jury or forty percent (40%) of any gross settlement or recovel)' amount. It is t:xpressly agreed between the parties that no money shall be paid to the Attorneys until and unless a recovery of funds is made on behalf of City, and that all attorneys' fees will come solely out of such recovery and no other City funds. All monies and everything of value (expressed in present cash dollars) recovered, received, or obtained by the City from any entity, person, individual, corporation, partnership, etc., or their successors, heirs or assignees covered by this Agreement shall be calculated to detennine total recovery or settlemt:nt value. In the event that the Attorneys and the City cannot agree on the value, expressed in present cash dollars, of any item or thing included in a total recovery or settlement, the parties agree to obtain the services of a mutually agreed upon accounting linn to make an apprai,;:al of present cash value of such item or thing which appraised value shall be assigned to such item or thing lor plll1Xlses of determining cash value of the total recovery or settlement, or else this will be resolved by arbitration as mutually agreed upon by the parties. In consideration of the Attorneys' services, the City hereby conveys and assigns to the Attorneys and agrees to pay to the Attorneys an undivided interest in and to all of the City's claims and causes of action covered by this Agreement to the extent of the percentages set forth above. If then: is any type of scttlcment reached by the Attorneys whereby the City is to receive or be paid future payments, thcn the st:ttlement will be reduct:d to pn;scnt value and the st:ttlement will be arranged whereby there will be sutlicient cash at the time of the settlement to P~IY the attorneys' fees which will be ligured on the present value of the settlement in~luding.the present vulue of future payments. All Sluns due und to become due are payable at the office of Jolm M. O'Quinn & Associates, L.L.P., in Harris County, Texas. SETTLEMENT TIle Attorneys shall be authorized to compromise and scttle all claims covered by this Agreement. The Attorneys shall be solely responsible for negotiating the tenns of any settlements. Howcver, no settlement of any nature will be made without City's approval and City agrees to make no settlcment or oller of settlement without the approval of the Attorneys. The parties agree to approve reasonable settlements. POWER OF ATTORNEY The Attorneys are hereby granted power of allomey so that they may have full authority to prepare, sign, and tile all legal instnunents, pleadings, drul1s, authorizations, and papers that shall be reasonably necessary to conclude this representation, including settlement undlor reducing to possession any and all monies or other things of value due to the City. The Attorneys are also authorized and empowered to act as the City's negotiators in any and all settlement negotiations concerning the subject matter of this Agrcement. NO GUARANTEES It is understood and agreed that the Attorneys cannot warrant or guarantee outcome of any particular claim and the Attorneys have not represented to the City that City will recover all or any funds. City realizes that Attorneys will be investigating the law and facts applicable to its claims on a continuing basis and should the Attorncys learn something that in the opinion ofthe Attorneys makes it impractical for attorneys to proceed with the handling of the City's claim, the Attorneys may withdraw from further representation of City by sending written notice to City's last known address. Such notice shall not be given in such a manner or at such a time as to prejudice the rights of the City. EXPENSES City additionally agrees that the Attorneys are to be repaid and reimbursed out of any recovery for all court costs and expenses that the Attorneys have paid or incurred relating to City's claims. 'Ille City further agrees that attorneys may borrow funds to pay expenses and that any reasonable interest due and owing on such amounts advanced by the Attorneys on behalf of City's claim will be reimbursed out ofCity's recoverics. Thc attorncys' Ices will be ligurcd on a total recovery or settlement. If the Attorneys do not obtain a settlement or recowry f()f the City, then the City will not pay any fees or expenses. COOPERATION The City agrees to cooperate with the Attorncys at all times and comply with all reasonable requests of the Attorneys to facilitate this Agreement. The City further agrees to provide the Attorneys with all requested documentation, information, records, and witnesses that will be needed to reasonably rcpresent the interests of the City. ASSOCIATED COUNSEL The Attorneys may, at their own expense, use or associate othcr attorneys in the representation of matters covered by this Agreement. The City further understands that a number of attorneys may rcpresent the legal interests of the City on the matters covered by this Agreement and that no conunitment is madc that any particular lawyer associated with the Attorneys shall be personally undertaking representation of the City's claims. Attorneys may tcrnlinate this Agreement if in their reasonable professional judgment such is ddellllined an acceptable course of action. CONSTRUCTION This Agreement shall be controlled and eonstmed by Texas law. ARBITRATION Any disagreements, disputes, controversies, or claims arising out of or relating to this Agreement shall be resolved by binding arbitration pursuan,ttQ the Federal Arbitration Ad in accordance with the Commercial Arbitration Rules then in effect with the American Arbitration Association. This Agreement is binding upon and inures to the benclit of the parties herdo and their respective heirs, executors, administrators, legal representatives, successors, and assigns. SEVERABILITY This Agreement shall be construed severally and ifany portion shall bc found to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unentorceability shall not allcet any other provisions of this Agreement that are not invalid, illegal, or unenforceable and the Agreement shall be construed ns though the invalid, illegal, or unenforceable provision had never been contained herein. COMPLETE ACREEMENT This letter Agreement constitutes the salt: and only Agreement of the parties hereto and supersedes any other writings or understandings or written or oral Agreement between the parties respective to the subject matter herein. Signed and approved this )3 ~y of !vb y: ,2000. Benjamin L. Hall, III The City of La Porte By:GJ~ ,. \~~ Autht?rized City Otricer Title Date: /1- /1-00 ~ly J1J ~ I f/ AHEST: Other authorized signatun:s of City oll"icials ~ tJjr/l~(]( JiuuI Title: (I j r 'f S [- C jl. t. /7<< Y / Countersigned by: g:\benhall\wharton \1 trauth EXHIBIT "A" LETTER AGREEMENT RETAINING BENJAMIN L. HALL, 111 AND THE FIRM OF JOHN M. O'QUlNN & ASSOCIATES, L.L.P. TO REPRESENT CLIENT INTERESTS, GRANT POWER OF ATTORNEY AND CONTINGENT FEE CONTRACT SCOPE The City of La Porte ("City") hereby retains and employs Benjamin L Hal!, m and Jolm M. O'Quinn & Associates, L.L.P., ("Attorneys") to sue I(lr and recover ullIL'Cs, damages, claims, and compensation to which the City may be entitled as well as to compmmise and scUll' all cluims that the City may have ag.ainst Houston Lighting & Power Company, Reliant Energy, Inc., and all their subsidiaries, amliatcs, predecessors, Sllccessors, and assigns, ("the Companies"), that had or have facilities, equipmcnt, pipelincs, uses, transmissions, lhmchises, or othl.'T presences upon, on, under, above, across, through, or in the public rights of way or propl-"Tly of the City or which use sueh lilcilities within the City and lor which a lee is due or owing in law, contract or equity to the City. It is expressly agreed and understood that the Attorneys' representation is limited to representation of the City relating to electrical power debts or obligutions and not to any otlle;' maUer, person, entity, or enterprise not specilically named herein as a client. Further, the Attomeys' representation of the City is limited to the spt":I,;ific matters descrihed herein and the City docs not expect nor will the Allomeys pursue ,lilY other mallers not specilically covered by this Agreement. FEES In consideration of the Attomeys' work on behalf of City, the City hl..'Tchy assigns, grants, and conveys to the Attorneys the following pn..'Scnt undivided inll.'Test in all d~lims or causes of action that are covered by this Agreement as a reasonable contingent tee for the Attorneys' services and said eonting.cnt fee will be ligured on the total gross recovery of settlement. TIle Attorneys will possess an interest ofthc grcater ofthc total attomey's fees awardl.>d by the Court and/or jury or forty percent (40%) of any gross selllement or rCCtlVcl)' amount. It is expressly agn-,cd bt.>twl..>en the parties that no money shall be paid to the Attorneys until and unless II recovcl)' of funds is madc on behalf of City, and that all attorneys' fees will come solely out of such recovery and no other City funds. All monies and everything of value (expressed in prt'sent cash dollars) n..'Covercd, received, or obtained by the City from any cntity, person, individual, corporation, p1ll1nership. etc., or their successors, heirs or assignees covered by this Agreement shall be calculated to dell.:nnine total recovery or ~ctllelllent valuc. In the cvent that the Attorneys and the City cannot agree on the value, exprcssed in present cash dollars, of any item or thing included in a total recovery or settlement, the parties agree to obtllin the services of a mutually agrecd upon accounting linn to make an apprai"al of prt.."SCIlt cash value of such item or thing which appraised value shall be ussignl..'(lto such item or lhing Il)r purposes of detennining cash value of the total recovery or settlement, or else this will he resolved by arhitmtion us mutually agrCl.>d upon by the parties. In consideration ofthe Attorneys' services, the City hereby conveys and assigns to the Attorneys and agrees to pay to the Attomcys an undivitk.>d interest in and to all ofthe City's claims and causes ofaetion covered by this Agreement to the ex1ent of the pt..'Tcentages set l(lrth above. If there is uny Iype ,)1' seltlcment reached by tJ1C Attorneys whereby the City is to receive or be paid fuluTC payments, then the settlement will he reduced to prescnt value and tJle settlement will be arranged whereby there will be sufticient cash at the time ofthc seUk'mcnllo pay the attorneys' tees which will be figured on the present value of the settlement including the present value of future payments. All sums due and to become due are payable at the oiliee of 101m M. O'Quinn & Assoeiutes, L.L.P., in II<lITis Cmmty, Texas. SETTLEMENT The Attorneys shall he authorized to compn)mise and settle all claims covered hy this Agreement. The AUorneys shall be solely responsible tor negotiating the ternlS of uny selllemcnts. However, no scHlelnl.'!lt of any nature will be made without City's approval and City agrees to make no settlement or oller of scttlement without the approval of the Attomcys. The parties agn..'C to approve reasonable settlements. POWER OF ATTORNEY TIle Attorneys arc hereby granted power of aHorney so that they may have full authority to prepare, sign, and file all legal i.l1stnllnents, pleadings, drans, authorization,,>, and papl:fS that shall be reasonably necessary to conclude this representation, including settlement and/of reducing 10 pOSSCS:iiOll un)' ~lnd all monies or other things of value due to the City. The Attorneys are also authorized and cmpowercd to act as the City's negotiators in any and all settlement negotiations concerning the subject matter of this Agn,'ClllcnL NO GUARANTEES It is understood and agreed thaI the Attorncys cannnt wamlllt or guarantee outcome of.lIlY particular claim and the Attorneys have not represcnted to the City thnt City will n..'Cover ull or any lunds. City realizes that Attorneys will be investigating the raw and fucts applicable 10 ils claims on a continuing basis and should the Attorneys learn something that in the opinion ofthe Attorneys mokt.'s it impmcticnl for attorneys 10 proceed with the handling onhc City's elaim, the Attorneys may withdraw from lurthcr representation orCity by scnding writtcn notice to City's last known address. Such notice shall not be given in such a manner or at such a timc as to prcjudi<.:c thc rights of the City. EXPENSES City additionally agrees that the Altol11cys arc to be repaid and reimbursed out of any recovery tor all court costs and expenses that the Attorneys have paid or incurred relating to City's claims. 'Ihe City lurthcr agrees that attorneys may borrow funds to pay expenses and that (my reasonable interest due and owing. on such U1110unts advanced by the Attorneys on behalf of City's claim will be rcimbllTSl.-d out of City , s recoveries. 'Jh~ aUorncys' li..-cs will be fig.ured on a total recovClJ' or seulemt.'lJ1. If the Attorneys do not obtain a settlement or recovcr) I()[ Ilw Cily, then the City will not pay (Ill)' fees or expenses. COOPERATION The City ugn.'CS to coopcmte with the Attomeys at all times and comply with all reasonable requests of the Attorneys to facilitate this Agrt..'Cmcnt. 'IllC City lhrther agn.'Cs to prnvidc the Altome)'s with all rcquestt.'d documentation, information, records, and witnesses that will be Ilcl.>ded to rcnsonably represent the inlerests of Ihe Cily. ASSOCIATED COUNSEL TIle Attorneys may, at their own eXf1L'11Se, use or associate othl.'f uUol1leys in the n.'prescntation ofmattcrn covered by this Agreement. The City lurthcr undcrstunds that unumber ofatlomeys may rcprcscntthe legal interests of the City on the matters covered by this Agreement and that no eonunilment is mnde thai un)' particular lawyer associated with the Attorneys shall be personally undt..'t1aking representation of the City's claims. Atlomeys may tenninate this Agreement if in their reasonable professional judgment such is dctennined an acceptable cOllrse of<lction. CONSTRUCTION This Agreement shall be controlled .md CC)JlstTlled by Texas law. ARBITRATION Any disagreements, dispules, controversies, or cluims urising. out of or rcl<lting to this Agrl.'cment shall be resolved by binding arbitmtion pursuant to the Fcdcml Arbitration A.:I in <lccorJance with the Commercial Arbitration Rules then in effect with the Aml.>fican Arbitration Ass()ci~lljoll. 111is Agreemcnt is binding upon and inures to the bcnclit of/he parties hereto and their respective heirs, executors, administratl1rs, legal representatives, SllCCI..'ssors, and assigns. SEVERABILlTY This Agreement shall be construed scvl.'lully and if any portion shall be It1lllld to be invalid, illegal, or wlenlbrcenble in any respect, such invalidity, illegality, or unenfi.)l'cC'<lbility shallllot an...'Ct any other provisions of this Agn.'Cment that are not invalid, illegal, or unenforceable and the Agreement shall be eonstnled as though the inV'<llid, illegal, or unenforceable provision had never been contained herein. COMPLETE AGREEMENT 111is letter Agret..>mcnt constitutes the sole und only Agreement urthe parties hereto and sUpL'Tsedes any other writings or Wldersmndings or written or om} Agreement between the parties rcspl..'Ctivc 10 Ihe subject malter herein. Signed und approved this day or ,:WOO. Juhn M. O'Quinn & Associates, L.t.P. Benjamin L Hall, 1I1 The City of l.a FOlic 13Y()?tJ}.v.X- T. \<\..J;?,Iv~ Authorized City Olliei:f Title Date: AlTEST: Other autholizl..-d signatures orCity ol1icials Title: Countersigned by: Tille: APPROVED AS TO FORM: City Auol1wy g:\benhall\wharton\ltrauth i!JL if REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 11/13/00 ,,~~ R'qu",.d By: M "m." -1 ~ Department: City Secret:ilrY'~ Office Appropriation Source of Funds: nla Account Number: nla Report: Resolution: Ordinance: x Amount Budgeted: nla Exhibits: Letter from K. Askins Amount Requested: ilIa Exhibits: Ordinance Budgeted Item: YES NO Exhibits: Aereement SUMMARY & RECOMMENDATION The City of La Porte has been conducting joint elections with the La Porte Independent School District and the San Jacinto College District since 1998. The City originally entered the contract with the agreement the City of La Porte would conduct the election even if the City election was cancelled. After three years, the City Secretary's Office has determined it would not be cost effective for the City to handle elections if the City is able to cancel its own. The City of Shore acres has never handled joint elections if they cancelled their own election. The City of Morgan's Point is also negotiating a new contract with the school and college districts and will not be handling joint elections if there election is cancelled. The City Secretary met with both districts last week and they will be adopting the new contract at their next public meetings. Action Required bv Council: Staff recommends City Council adopt the ordinance and contract relieving the City from conducting joint elections for other entities if its own elections is cancelled. Approved for City Council Al!enda Q~ T, \-t~ Robert T. Herrera, City Manager \l-l-c)J Date ----------. ASKINS & ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS JOHN D. ARMSTRONG TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 CHARLES R. HUBER. JR. BOARD CERTIFIED - CIVIL TRIAL LAW TEXAS BOARD OF LEGAL SPECIALIZATION CLARK T. ASKINS August 29, 2000 Ms. Martha A. Gillett City Secretary City of La Porte City Hall La Porte, Texas Dear Martha: Per our discussion, I enclose proposed revised Interlocal Election Agreement, which would be effective January 1, 2001, with revised paragraph 1 which provides that if a party to the Agreement cancels its own election due to unopposed candidates, it shall have no further obligations under the Agreement, for that election year, other than to continue to provide its physical facilities. This revised Agreement should be approved before the end of the year by the respective boards of the City of La Porte, La Porte School District, and San Jacinto College. I have prepared a contract approval ordinance for the City. Please call me if you have any questions. truly, KWA: sw Enclosures ORDINANCE NO. 2000- ~Ll51 AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT FOR JOINT ELECTIONS, AMONG THE CITY OF LA PORTE, LA PORTE INDEPENDENT SCHOOL DISTRICT, AND SAN JACINTO COLLEGE DISTRICT; MARING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the 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 ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ORDINANCE NO. 9.000 - dt.f5' I PAGE 2 PASSED AND APPROVED, this ~ day of IlOJ(rJ?~j , 2000. CITY OF LA PORTE BY.~ . rman L. Ma 0 e Mayor ATTEST: G()(jtttid' it /lfU/ Mar ha A. Gillett city Secretary /II APPRO",,?ED:} . ~/ / i/' " I / /, / ' W{/i3;/ tJ) Mf;,,4) Kn W. Askins city Attorney INTERLOCAL AGREEMENT FOR JOINT ELECTIONS STATE OF TEXAS { { COUNTY OF HARRIS { This Agreement made and entered into by and among the CITY OF LA PORTE (hereinafter "LA PORTE"); the LA PORTE INDEPENDENT SCHOOL DISTRICT (hereinafter "LPISD"); and SAN JACINTO COLLEGE DISTRICT (hereinafter "COLLEGE"), WIT N E SSE T H: 1. This Agreement is made and entered into under the authority of the Texas Interlocal Cooperation Act, codified as Chapter 791, Texas Government Code, and Chapter 271, "Joint Elections", of the Texas Election Code. The purpose of this Agreement is to establish the procedures, division of responsibilities, and sharing of costs, for annual joint elections of officers of the parties hereto on the first Saturday in May of each year, and any necessary runoff elections, commencing on the first Saturday of May, 1998. A party to this Agreement which cancels its own election due to unopposed candid.ates, pursuant to Section 2.051, et. seq., Texas Election Code, shall have no further obligations under this Agreement after the date of cancellation, for such election year, other than to continue to provide its physical facilities as provided for herein. The non-canceling parties shall continue to perform their respective obligations under this Agreement. This Agreement shall not be applicable to special elections held by a party hereto. 2. The annual joint election shall be conducted at the seven (7) election precincts described on Exhibit "A" attached hereto and incorporated by reference herein. Early voting place for LA PORTE, LPISD, and COLLEGE, shall be at La Porte City Hall. LA PORTE shall conduct elections for itself, LPISD, and COLLEGE, at Precincts 1 through 7, both inclusive. 3. Each entity shall conduct its own candidate filings; drawings for places on its ballot; posting and publication of election notices; receipt of campaign finance reporting; and any other actions required of the entity by the Texas Election Code, except as herein provided. LA PORTE shall arrange for printing of ballots, and rental of election booths and electronic counting machines; appoint and compensate judges and clerks; and shall conduct early voting for LA PORTE, LPISD, and COLLEGE. LPISD and COLLEGE shall each make the necessary filings with the u.s. Department of Justice under the Federal Voting Rights Act, for pre-clearance of the change in election date; joint election procedure; and the establishment of precincts; for their respective jurisdictions. 4. Common expenses of the joint election shall be prorated among the parties incurring and benefiting from such expenditures. Expenses shall include all necessary disbursements, such as ballot printing and supplies, judges and clerks. LA PORTE shall invoice LPISD and COLLEGE for their pro rata portions of such joint expenses, which invoice shall be due and payable within (30) days of receipt thereof. Under the terms of the Texas Election Code, no charge shall be incurred for use of 2 public buildings to conduct an election. The parties shall meet following the 2001 election to review the administration and expenses of the joint elections. 5. This Agreement shall be effective January 1, 2001, for the 2001 general election of officers by the parties hereto, and any necessary runoff elections. This Agreement shall automatically renew thereafter on a year to year basis. A party to this Agreement may withdraw from this Agreement by giving written notice to all of the other parties hereto, on or before September 1st of the year preceding the next election cycle. 6. This Agreement has been approved by the respective governing boards of the parties hereto. PaYments hereunder shall be from current revenues available to the paying party. WITNESS OUR HANDS, effective January 1, 2001. By: ~OF LA p~ o ~e Mayor ~T: . a;(f! tv a. AmJl Martha A. Gillett city Secretary AT LA PORTE INDEPENDENT ~... ....HOO~~ By:(. ~ ) President Board of Trustees Gordon Westmoreland 3 SAN JACINTO COLLEGE DISTRICT By: President Board of Trustees ATTEST: Secretary LfM \ Sf'll, ,) J1 [V r:J II D jJ l/l eel ed.ea C~~ -, 4 EXHIBIT HA- Election Precinct #1 Pollina Place: Lomax Elementary School (Entry Area) 10615 North Avenue "L" La Porte, Texas 77571 Boundaries: BEGINNING at the intersection of the Southern Pacific Railroad tracks and Spencer Highway (West Main Street); THENCE westerly along Spencer Highway (West Main Street) to Big Island Slough; THENCE northerly along Big Island Slough to north boundary of Creekmont SUbdivision; THENCE west along north boundary of Creekmont Subdivision to Underwood Road; THENCE north along Underwood Road to the Southern Pacif ic Railroad tracks; THENCE southeasterly along the Southern Pacific Railroad tracks, following a curve to the south, and continuing in a southerly direction along the Southern Pacific Railroad tracks to Spencer Highway (West Main Street), to the POINT OF BEGINNING. Election Precinct #2 Pollina Place: Baker Junior High School (Cafetorium) (enter off Underwood Road) 6000 West Main Street (West Main Street/ Spencer Highway at Underwood Rd. ) La Porte, Texas 77571 Boundaries: BEGINNING at the intersection of the center line of Big Island Slough and Fairmont Parkway; THENCE west along Fairmont Parkway to the east boundary line of the one hundred forty one (141) acre San Jacinto Junior College Site, same being the west boundary line of the former College View M.U.D. as described in Article 8280-381, V.A.T.S. ; THENCE northerly along the west boundary line, and a northerly projection thereof, of said (College View M.U.D.) to Spencer Highway (West Main Street); THENCE east along Spencer Highway (West Main Street) to the center line of Myrtle Creek Drive; THENCE south along Myrtle Creek Drive to Cedarmont Drive; THENCE southerly along Cedarmont Drive to its intersection with the westerly projection of the rear lot lines of Block 17 in Fairmont Park West Section One; THENCE southeasterly along the rear lot lines of Block 17 in Fairmont Park West section One, passing through Parkmont Drive and following the rear lot line of Block 18 of Fairmont Park West Section Two, to Quiet Hill Road; THENCE westerly along Quiet Hill Road to Willmont Road; THENCE southerly along Willmont Road to its intersection with the westerly projection of the rear lot line of Block 35 in Fairmont Park West Section Two; THENCE easterly along the rear lot lines of Block 35 in Fairmont Park West Section Two to the center line of Roseberry Drive; THENCE northerly along the center line of Roseberry Drive to the center line of Hillridge Road; THENCE easterly along the center line of Hillridge Road to the center line of Big Island Slough; THENCE southerly along the center line of Big Island Slough to the intersection of Fairmont Parkway, to the POINT OF BEGINNING. Election Precinct #3 Pollinq Place: Rizzuto Elementary School (Cafetorium) 3201 Farrington Boulevard La Porte, Texas 77571 Boundaries: BEGINNING at the intersection of an Exxon Pipeline Easement and Fairmont Parkway; THENCE west along Fairmont Parkway to center line of Big Island Slough; THENCE northerly along the center line of Big Island Slough to the center line of Hillridge Road; THENCE westerly along Hillridge Road to the center line of Roseberry Drive; THENCE southerly along the center line of Roseberry Drive to the intersection with the easterly projection of the rear lot line of Block 35 in Fairmont Park West Section Two; THENCE westerly along the rear lot line of Block 35 in Fairmont Park Section Two to the center line of Willmont Road; THENCE northerly along the center line of Willmont Road to the center line of Quiet Hill Road; THENCE easterly along the center line of Quiet Hill Road to the intersection of the southeasterly projection of the rear lot line of Block 18 in Fairmont Park West section Two; THENCE northwesterly along the rear lot line of Block 18 in Fairmont Park West Section Two, passing through Parkmont Drive and becoming the rear lot line of Block 17 Fairmont Park West Section One to Cedarmont Drive; THENCE northerly along Cedarmont Drive to Myrtle Creek Drive; THENCE northerly along Myrtle Creek Drive to Spencer Highway (West Main Street); THENCE west along Spencer Highway (West Main Street) to Underwood Road; THENCE north along Underwood Road to the north boundary of the Creekmont Subdivision; THENCE east along the north boundary of the Creekmont Subdivision to Big Island Slough; THENCE southerly along Big Island Slough to Spencer Highway (West Main Street); THENCE east along Spencer Highway (West Main Street) to an Exxon Pipeline Easement; THENCE southerly along an Exxon Pipeline Easement to Fairmont Parkway, to the POINT OF BEGINNING. Election Precinct #4 polling Place: Dewalt Alternative School (Library) 401 North 2nd Street La Porte, Texas 77571 Boundaries: BEGINNING at the intersection of North Broadway Street and the Southern Pacific Railroad tracks; THENCE south along North Broadway Street to Barbour's Cut Boulevard; THENCE east along Barbour's Cut Boulevard to North Brownell Avenue; THENCE south along North Brownell Avenue to East Madison Street; THENCE east along East Madison street to North Holmes Avenue; THENCE southerly along North Holmes Avenue to East Main street; THENCE westerly along East Main street to South Broadway Street; THENCE south along South Broadway Street to West "A" Street; THENCE west along West "A" Street to State Highway 146; THENCE south along State Highway 146 to West "B" Street; THENCE west along West "B" Street to South 13th Street; THENCE south along South 13th Street to West "E" Street; THENCE west along West "E" Street to the Southern Pacific Railroad tracks; THENCE north along Southern Pacific Railroad tracks, following a curve to the east of said railroad tracks; THENCE easterly along the Southern Pacific Railroad tracks to North Broadway Street, to the POINT OF BEGINNING. Election Precinct #5 Pollinq Place: LPISD Technology Support Center 301 East Fairmont Parkway La Porte, Texas 77571 Boundaries: TRACT I BEGINNING at the intersection of Barbour's Cut Boulevard and North Brownell Avenue; THENCE east along Barbour's Cut Boulevard to Donaldson Avenue; THENCE southeasterly along Donaldson Avenue to the shoreline of Galveston Bay; THENCE southerly along the shoreline of Galveston Bay to the north city limit line of Shoreacres, (or the south line of Tract I); THENCE west along the north city limit line of Shore acres (or the south line of Tract I) to South Broadway Street (Old Highway 146); THENCE north along South Broadway Street (Old Highway 146) to East Main Street; THENCE easterly along East Main Street to North Holmes Avenue; THENCE northerly along North Holmes Avenue to East Madison street; THENCE west along East Madison street to North Brownell Avenue; THENCE north along North Brownell Avenue to Barbour's Cut Boulevard, to the POINT OF BEGINNING. TRACT II BEGINNING at the intersection of South Broadway Street (Old Highway 146) and the south city limit line of Shoreacres (or the north line of Tract II); THENCE easterly along the south city limit line of Shoreacres (or the north line of Tract II) to the shoreline of Galveston Bay; THENCE southerly along the shoreline of Galveston Bay to the south city limit line of La Porte (or the south line of Tract II) ; THENCE westerly along the south city limit line of La Porte (or the south line of Tract II) to South Broadway Street (Old Highway 146); THENCE north along South Broadway Street (Old Highway 146) to the south city limit line of Shoreacres (or the north line of Tract II) to the POINT OF BEGINNING. Election Precinct #6 Pollinq Place: La Porte City Hall 604 West Fairmont Parkway La Porte, Texas 77571 Boundaries: BEGINNING at the intersection of West "A" Street and South Broadway Street; THENCE south along South Broadway Street to the south city limit line of La Porte; THENCE west along the south city limit line of La Porte to the west right-of-way line of State Highway 146; THENCE northeasterly along the west right-of-way line of State Highway 146 to McCabe Road; THENCE west along McCabe Road to the Southern Pacific Railroad tracks; THENCE north along the Southern Pacific Railroad tracks to Fairmont Parkway; THENCE west along Fairmont Parkway to the Humble Pipeline Company right-of-way; THENCE northeasterly along the Humble Pipeline Company right- of-way to West Main street; THENCE east along West Main street to the Southern Pacific Railroad tracks; THENCE south along the Southern Pacific Railroad tracks to West "E" Street; THENCE east along West "E" Street to South 13th Street; THENCE north along South 13th Street to West "B" Street; THENCE east along West "B" Street to State Highway 146; THENCE north along State Highway 146 to West "A" Street; THENCE east along West "A" Street to South Broadway Street and the POINT OF BEGINNING. Election Precinct #7 Pollinq Place: College Park Elementary School 4315 Luella, Deer Park, Texas 77536 Boundaries: That portion of the La Porte Independent School District lying and being situated west of Underwood Road, north of Fairmont Parkway, and within the corporate limits of the City of Deer Park, Texas. REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 13 Aoorooriation Requested By: Source of Funds: General CIP Fund Department: Plan in Account Number: 015-9892-806-1100 Report: _Resolution: Ordinance: -L Amount Budgeted: $35.000.00 Exhibits: Ordinance Bid Tabulation Amount Requested: $41.300.00 Budgeted Item: @ NO Bidder's Ust SU~RY & R..ECOMM~NDATION As part of the FY 00-01 Budget for Capital Improvement Projects, City Council approved $35,000.00 for North Side Park lights, poles and wiring replacement. The lights, poles and wiring replacement project consists of replacing the 30 year old light poles, electrical wiring, and associated fixtures at the North Side Park ballfield. Survey work was performed by City Staff while design and engineering were performed on this project utilizing Packard Engineering Associates, Inc. On October 23,2000, the City received competitive bids from two qualified contractors (see attached Bid Tabulation). Pfeiffer & Son, Inc. of La Porte, Texas submitted the low bid in the amount of $ 39,300.00. Contract time for completion shall be 100 consecutive calendar days after ''Notice to Proceed" is issued. Staff has reviewed the bids as submitted, and determined that the low bid is a reasonable amount and Pfeiffer & Son, Inc. is qualified to perform this work. Staff recommends that the City Council authorize the City Manager to execute a contract with Pfeiffer & Son, Inc. in the amount of $39,300.00 and further authorize $2,000.00 (5%) contingency for the North Side Park ballfield light poles, fixtures, and wiring replacement. The additional funds necessary to award this bid are available in the General CIP Fund Contingency Account. Action Reauired bv Coundl: Consider approving an ordinance authorizing the City Manager to execute a contract with Pfeiffer & Son, Inc. in the amount of $39,300.00 and further authorizing $2,000.00 contingency for the North Side Park ballfield light poles, fixtures, and wiring replacement. Approved for City COQDeil A2eAda ~~ \~ ~ Robert T. Herrera, City Manager \l"I.-cJ() Date ORDINANCE NO. 2000- ~/f5;)' AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWBEN THE CITY OF LA PORTE AND PFEIFFER Be SON, INC. FOR THE NORTH SIDE PARK BALL FIELD REPLACEMENT OF LIGHT POLES, ELECTRICAL WIRING, AND ASSOCIATED FIXTURES; APPROPRIATING. 41,300.00 TO FtJIfD SAID CONTRACT; MAKING VARIOUS FINDINGS AlfD PROVISIONS RELATING TO THE SUBJECT; FlNDIlfG COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to afflX the seal of the City to all such documents. City Council appropriates the sum of $41,300.00 from Capital Improvement Fund 015 to fund said contract. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council Was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been ORDINANCE NO. 2000w ~4~ J..-- open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this November 13,2000. 4F LA PORT. E By: ~ orman '. Ma one, Mayor ATTEST: ~l!1lJj . (1&21' Martha Gillett, City Secretary a:;;;v~ Knox W. Askins, City Attorney Due to the volume of this contract, a copy is available for your review in the City Secretary's Office P Unrd 0q f;l€- hits ori B iv>tl (1)Yl1-ra.of' 8, Ad en. (5D /leuer receiJ~d Ot1e due -to nDf reC.e j lJ II\c1 el1OL</jl ('7)1): ~ Z / J Vy.c....J f10m V'lj;A.JeE>', ~ CITY OF LA PORTE NORTH SIDE PARK BALLFIELD LIGHTING CLP PROJECf #2000-5203 BID TABULATION PFEIFFER & SON y $ 39,300.00 VIOHL ELECTRIC Y 100 $ 43,500.00 CITY OF LA PORTE NORTHSIDE PARK BALLFIELD LIGHTING CLP PROJECT #2000-5203 Advertising The Bayshore Sun - October 8th and 15th, 2000 La Porte-Bayshore Chamber of Commerce Bid Notice Faxed Mitchell Electric, Inc. 12722 Hwy 3, Suite C Webster, TX 77598 James Lilly Electric PO Box 1125 Kemah, TX 77565 Bay Area Electric 4800 Todville Seabrook, TX Moser Electric La Porte, TX Sun-Rise Electric PO BOX 422 La Porte, TX 77572-422 Texan Electric 7011 Dixie Drive Houston, TX 7087 Pfeiffer & Sons, Inc. PO Box 1116 La Porte, TX 77572 Contractors That Picked Up Plans & Specifications Pfeiffer & Sons, Inc. Moser Electric, Inc. PO Box 1116 60 1 s. Sib. Street LaPorte, TX 77572 LaPorte, TX 77571 Viohl Electric 104S0 Scarpinato Place Stafford, TX 77477 REQUEST FOR CITY COUNCIL AGENDA ITEM Department: Auurouriation Agenda Date Requested: Requested By: Source of Funds: General CIP Fund Plannin2 Account Number: 015-9892-807-1100 Report: Resolution: _Ordinance: X Amount Budgeted: $45.000.00 Bid Tabulation Amount Requested: $44.921.00 Budgeted Item: ~ NO Exhibits: Ordinance Bidder's List SUMMARY & RECOMMENDATION As part of the FY 00-01 Budget for Capital Improvement Projects, City Council approved $45,000.00 for North Side Park basketball pavilion structural repairs & painting. Previous work included the emergency repair of all columns and cross-bracing, this work totaled $8,175.00 leaving a balance of $36,825.00. This rehabilitation project consists of replacing the existing deteriorating metal roof and steel channels, and blasting and painting all of the support columns. Design and engineering were performed on this project utilizing City Staff. On October 23,2000, the City received a bid from one qualified contractor. Derk Harmsen Construction Co., Inc. of Deer Park, Texas submitted the only bid in the amount of$ 42,771.00. Contract time for completion shall be 3S consecutive calendar days after "Notice to Proceed" is issued. Staff has reviewed the bid as submitted and determined that it is a reasonable amount and Derk Harmsen Construction Co., Inc. is qualified to perform this work. Staff recommends that the City Council authorize the City Manager to execute a contract with Derk Harmsen Construction Co., Inc. in the amount of $42,771.00 and further authorize $2,150.00 (5%) contingency for the North Side Park basketball pavilion rehabilitation and painting. The additional funds necessary to award this bid are available in the General CIP Fund Contingency Account. A~tion Required bY CODneil: Consider approving an ordinance authorizing the City Manager to execute a contract with Derk Harmsen Construction Co., Inc. in the amount of $42,771.00 and further authorizing $2,150.00 contingency for the North Side Park basketball pavilion structural repairs and painting. Approved for City Couneil A~en~a 8~ T. ~~ Robert T. Herrera, City Manager \ \.. '\.. 0'0 Date ORDINANCE NO. 2000- ~Jfr5' 3 AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND DERK HARMSEN CONSTRUCTION CO., INC. FOR THE NORTH SIDE PARK BASKETBALL PAVILION STRUCTURAL REPAIRS AND PAINTING; APPROPRIATING $ 44,921.00 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affIx the seal of the City to all such documents. City Council appropriates the sum of $44,921.00 from Capital Improvement Fund 015 to fund said contract. Section 2. The City Council offIcially fInds, determines, recites, and declares that a suffIcient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been ORDINANCE NO. 2ooo-P.45.3 open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this November 13, 2000. CITY OF LA PORTE By: ,,~~ Mayor ATTEST: '-1J7JltIJ/J dLtt; Martha Gillett, City Secretary ~uJ~ Knox W. Askins, City Attorney Due to the volume of this contract, a copy is available for your review in the City Secretary's Office W I- 0::: o a.. :5 u. o > I- - o ~ ga ~N p~ f-lLt(Z UQO pgJ-l =Nf-c f-l=lt< oof-l~ ZUP O~= J-I S< ~.....f-l J-I"""'Q ~~J-I ~~= ~U Q J-I 00 :I: ~ o z CITY OF LA PORTE NORTHSIDE PAVILION STRUCTURAL REHAB CLP PROJECT #2000-5202 Advertising The Bayshore Sun - OCT 8TH and OCT 15TH, 2000 Derk Harmsen Construction 2820 Center Street Deer Park, TX 77536 Phone: 281-479-3400 FAX: 281-478-5115 Comex Corporation, PO Box 862 Deer Park, TX 77536 Phone: 281-479-2322 FAX: 281-479-2069 E & S Construction, Inc. PO Box 5427 Pasadena, TX 77508 Phone: 281-476-4722 FAX: 281-479-6219 Trinity Builders. 515 Wisconsin Avenue South Houston, TX 77587 Phone: 713-944-9292 FAX: 713-944.9599 Bid Notice Faxed Follis Construction III N. Broadway La Porte, TX 77571 Phone: 281-471-6881 FAX: 281-471-6038 Commodore Construction Co.. 55 Lyerly, Suite 100 Houston, TX 77022 Phone: 713-694.9371 FAX: 713-694-0714 Hale-Mills Construction, Co. 4130 Bellaire Houston, TX 77025 Phone: 713-665-1100 FAX: 713-665-4944 Associated General Contractors 3825 Dacoma Houston, TX 77092 Phone: 713-843-3700 FAX: 713-843-3701 FORCE Corp. PO Box 1079 La Porte, TX 77572-0853 Phone: 281-470-0550 FAX: 281-471-9627 Moore & Moore General Contractors POBox 1517 La Porte, TX 77572-1517 Phone: 281-471-0145 FAX: 281-471-0601 RTG Building Co. PO Box 0753 Seabrook, TX 77586 Phone 281-838-1113 FAX: 281-838-1003 Contractors That Picked Up Plans & Specifications Follis Construction III N. Broadway La Porte, TX 77571 Phone: 281-471-6881 FAX: 281-471-6038 Derk Harmsen Construction 2820 Center Street Deer Park, TX 77536 Phone: 281-479-3400 FAX: 281-478-5115 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 13; 2000 Requested By, ~ S Colletl Department: Public Works Appropriation Source of Funds: Utility CIP Fund Account Number: Various Report: Resolution: Ordinance: xx Amount Budgeted: $626,943 Exhibits: Ordinance No. 00- Amount Requested: $96,565 Exhibits: Proiect Description and Proiect Budl!:et Budgeted Item: YES XX NO Exhibits: Rneineerine Contract SUMMARY & RECOMMENDATION The City of La Porte has selected the firm of Claunch and Miller, Inc. to design the replacement of various waterlines, and the rehabilitation of a segment of sanitary sewer, as described on the attached Project Description. In addition to design services, the firm was requested to provide the services of a project representative (inspection) to ensure quality work and maintain citizen contact and relations with area residents, especially for the sewer rehabilitation portion of the Project. The attached Project Description and Project Budget summarize the Project. The Agreement with the Engineer is as follows: Waterline Replacement - Belfast, Piney Brook and Big Island Slough Preliminary Design $ 5,700 Final Design 17,000 Construction Phase 4.000 Total $26,700 Sanitary Sewer Rehabilitation - Between Rustic and Rustic Gate, from Maplewood to Roseberry Preliminary design $ 4,400 Final Design 13,400 Construction Phase 3. 100 Total $20,900 Special Services Survey Geotechnical Project Rep. Total $ 6,490 2,475 40.000 $48.965 TOTAL ENGINEERING $96,565 Action Required by Council: Approve Ordinance No. OO-_authorizing the City Manager to execute an agreement with Claunch and Miller, Inc. to provide professional engineering services for waterline replacement and sanitary sewer rehabilitation in the amount of$96,565. Approved for City Council Al!:enda 8~ T, \-\~ Robert T. Herrera, City Manager \ ~- ,-00 Date ORDINANCE NO. 2ooo-~4si AN ORDINANCE APPROVING AND AUTHORIZING AN ENGINEERING AGREEMENT BETWEEN THE CITY OF LA PORTE AND CLAUNCH , MILLER, INC., FOR PROFESSIONAL ENGINEERING SERVICES FOR WATERLINE REPLACEMENT AND SANITARY SEWER REHABILITATION; APPROPRIATING NOT TO EXCEED $96,565. 00 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. The City Council appropriates the sum not to exceed $96,565.00 from the Utility Capital Improvement Fund (Fund 3) and the Sewer Rehabilitation Fund (Fund 018) to fund said contract. 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 ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. ORDINANCE NO. 2000-Bq5i PAGE 2 section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. ATTEST: ~1!1 dlMttd uIt.(ttl Martha A. Gillett City Secretary A~~ Knox W. Askins, City Attorney CITY OF LA PORTE By:4~~ N rman L. Malone, Mayor PROJECT DESCRIPTION The Project consists of two (2) major components. The first is the replacement of eight- inch waterlines along Belfast and Piney Brook, including the replacement of sidewalks, and the replacement of the eight-inch waterline crossing Big Island Slough at Catlett. The second portion of the Project involves the rehabilitation of approximately 2,825 feet of eight-inch sanitary sewer between Rustic Rock Road and Rustic Gate Road from Maplewood Drive to Roseberry Drive. The waterline replacement portion of the Project is a continuation of the systematic replacement of old cast iron lines in the original Fairmont Park subdivision. These lines are subject to frequent leaks and breakage's, and have resulted in sidewalk displacement in this area. The sanitary sewer rehabilitation portion of the Project was developed from the systematic televised inspection of the City's sewer system. This segment of the system has experienced frequent service interruptions from misaligned joints, poor soil conditions, and storm water inflow. Because of the numerous services on this line segment (79), the depth (average 12 feet) and its location between houses, trenchless rehabilitation is advisable to avoid disruptions. Additionally, the use of sliplinning is not advisable due to the reduction in pipe diameter using this method. It has been determined that the current eight-inch size is desirable. Several technologies are available for trenchless rehabilitation with minimal loss of pipe diameter, including cure-in-place and pipe bursting. Cure-in-place has been used in La Porte many times, with good results. It is somewhat more expensive than other methods. Pipe bursting, although not yet used in La Porte, is a mature technology with a history of success in this area, with favorable costs. The proposed engineering services agreement will examine these methods and develop specifications that fit the conditions revealed by TV tapes supplied by the city and the geotechnical report. Due to the potential for service disruption and the need to excavate and reconnect sewer taps from the surface, a full-time project representative is recommended. Inspection of the waterline installation can also be accomplished by the same inspector as the two projects are in adjacent neighborhoods. The Project should be designed, bid and awarded by March 2001. With an estimated construction of 90 working days, the Project is estimated to be completed by July 2001. 2000-2001 UTILITY CIP PROJECT BUDGET WATERLINE REPLACEMENT ENGINEERING GEOTECHNICAL/SURVEY TOTAL ENGINEERING 2 CONSTRUCTION ESTIMATE BELF AST/PINEY BROOK BIG ISLAND SLOUGH TOTAL CONSTRUCTION $ 26,700 8,965 $ 35,665 $259,785 20,910 $279,910 TOTAL WATERLINE REPLACEMENT SANITARY SEWER REHABILITATION 2 ENGINEERING CONSTRUCTION ESTIMATE $ 20,900 250,368 TOTAL SANITARY SEWER REHAB. INSPECTION SERVICES 3 90 WORKING DAYS TOTAL 2000-2001 UTILITY CIP PROJECT BUDGET UTILITY CAPITAL IMPROVEMENT FUND BELFAST/PINEY BROOK WATERLINE REPLACEMENT BIG ISLAND SLOUGH WATERLINE REPLACEMENT 4 SEWER REHABILITATION FUND TOTAL AVAILABLE BUDGET NOTES I INCLUDES SOME GEOTECHNICAL FOR SEWER REHAB 2 INCLUDES 15% CONTINGENCY 3 INCLUDES BOTH PROJECTS 4 AMOUNT NEEDED FROM $500,000 BUDGET $300,000 50,000 $350,000 $276,843 $315,575 $271,268 $ 40,000 $626,843 $626,843 AGREEMENT FOR SERVICES This Agreement entered into as of the I!JI-- dayof /VOV. loDp A.D., by and between Claunch & Miller, Inc. hereinafter referred to as the "Consultant", and the City of La Porte, Texas, hereinafter referred to as the "Client". WITNESSETH WHEREAS, the Client has requested various services of the Consultant with respect to engineering design and preparation of contract documents for the construction of the proposed waterline improvements (hereinafter referred to as the Project). NOW, THEREFORE, Client and Consultant hereby agrees as follows: 1. Engagement of Consultant - Consultant hereby agrees to perform the services required under the scope of services related to the Project, and to provide Client with copies of the information, opinions, design calculations and contract documents made the basis of the scope of the services, which is set out in Attachment "A" and made a part of this contract. Consultant agrees to initiate services upon receipt of an executed copy of this Agreement. 2. Availability of Information - Client agrees to provide Consultant with all available information pertinent to the Project. Client will also provide copies of reports, drawings, and other data, and will, at Consultant's request, provide written authorization to review Client's files relative to the Project which may be in possession of third parties. Consultant agrees to return all original documents to Client upon completion of the Project, but reserves the right to make and keep reproducible copies of all such material. '. -l- 3. Access to Facilities - Client will provide access for the Consultant to enter the property and facilities of Client, as necessary for Consultant to perform services as required under the Project. 4. Instruments of Service - All documents prepared in accordance with this contract including exhibits, field notes, laboratory data, original drawings, and specifications are the property of the Client. The Consultant is given the right to use any of this data in connection with future engineering projects. The Consultant may retain copies or reproducibles of any information prepared for this Project. 5. Determination of Fees - The fees for the scope of services as stated in Attachment "A" provided by Consultant under this agreement will be based on a Lump Sum Amount of $59,765.00 for design and construction administration, time and expense for construction observation. 6. Payment and Fee Schedule - The Consultant will submit a monthly invoice for services rendered. The invoice will be based upon the Consultant's estimate of the proportion of the total services actually completed at the time of the invoice for design and construction administration and time and expense for construction observation. Services will be invoiced using the following fee schedule: Water Line Proiect Phase I - Preliminary: Phase II - Final Design: Phase III - Construction Administration: $ 5,700.00 $ 17,000.00 $ 4,000.00 -ll- Survey Services: Geotechnical Services: $ 6,490.00 $ 2,475.00 Sanitary Sewer Rehabilitation Proiect Phase I - Preliminary: Phase II - Final Design: Phase ill - Construction Administration: $ 4,400.00 $ 13,400.00 $ 3,100.00 Construction Observation Estimated Budget: $40,000.00 7. Terms of Payment - Payment of fees as determined under Paragraph 5 herein above shall be due and payable by Client within thirty (30) days following receipt of Consultant's monthly invoice. 8. Additional Services - Additional services beyond those described in the Scope of Services will be invoiced on the basis of direct labor cost times a factor of 2.99 and direct cost plus 10%. 9. Termination - The Client may terminate this contract at any time by giving seven (7) days' notice in writing to the Consultant. In that case, all finished or unfinished documents and other materials produced under this contract, shall become the Client's property. If the contract is terminated by the Client in accordance with this provision, Consultant shall be paid for all services performed to the date of termination. Consultant may terminate this contract -lll- upon seven days' written notice in the event of substantial failure by the Client to perform in accordance with the terms hereof through no fault of the Consultant. 10. Governing Law - This Agreement shall be deemed to have been made under, and shall be construed and interpreted in accordance with the laws of the State of Texas. The venue of any suit for enforcement or construction of this contract shall be in Harris County, Texas. 11. Dispute Resolution - The parties will attempt in good faith to resolve any controversy or claim arising out of or relating to this agreement promptly by negotiation between senior executives of the parties who have authority to settle the controversy. The disputing party shall give the other party written notice of the dispute. Within ten days after receipt of said notice, the receiving party shall submit to the other a written response. The notice and response shall include (a) a statement of each party's position and a summary of the evidence and arguments supporting its position, and (b) the name and title of the executive who will represent that party. The executive shall meet at a mutually acceptable time and place within twenty days of the date of the disputing party's notice and thereafter as often as they reasonably deem necessary to exchange relevant information and to attempt to resolve the dispute. If the controversy or claim has not been resolved within thirty days of the meeting of the senior executives, the parties shall endeavor to settle the dispute by mediation under the Construction Industry Mediation Rules of the American Arbitration Association. If the matter has not been resolved pursuant to the aforesaid mediation procedure within ninety -lV- days of the commencement of such procedure, (which period may be extended by mutual agreement), or if either party will not participate in such procedure, the controversy shall be settled by arbitration in accordance with "American Arbitration Association Construction Industry Arbitration Rules" by a sole arbitrator. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C & 1-16, and judgment upon award rendered by the Arbitrator may be entered by any court having jurisdiction thereof. The place of arbitration shall be Harris County. The arbitrator is not empowered to award damages in excess of actual damages, including punitive damages. -v- ENTERED INTO AND AGREED by the parties hereto as the day and year first written. CLAUNCH & MILLER, INC. Consultant B~~~~UN~,(I-!-- President CITY OF LA PORTE, TEXAS Client BD~ rr, t\~ AITEST: ~ tUcIt~ (j litd -Vl- CLAUNCH & MILLER, INC. Engineering Consultants ATTACHMENT "A" October 30, 2000 Mr. Steve Gillett Director of Public Works P.O. Box 1115 La Porte, TX 77572-1115 RE: Engineering Services for Waterline Improvements on Belfast Road and Piney Brook Drive and Sanitary Sewer Line Rehabilitation on Rustic Rock Road Dear Mr. Gillett: Claunch & Miller, Inc. (CMI) is pleased to submit this proposal for providing engineering services on the above referenced project. DESCRIPTION OF PROJECT Water Line Project The project consists of waterline improvements in Fairmont Park, Section I as follows: Belfast- This improvement includes the replacement of an existing 6" waterline with a new 8" waterline along Belfast Street from Farrington Blvd. to Valley Brook Drive (approximately 1,950'). This proj ect also includes the replacement of all of the existing sidewalk on the north side of Belfast for this segment. Piney Brook Drive- This improvement involves the replacement of an existing 6" waterline with an 8" waterline along Piney Brook Drive also involving sidewalk replacement from Old Orchard to Carlow (approximately 1,050 L.F.). Catlett and Bi~ Island Slou~h - This improvement involves the replacement of an existing 8" waterline crossing Big Island Slough. This involves replacing the line crossing under the ditch. The preliminary estimated construction cost for the water line improvements is $279,910.00 Page I of7 3701 Kirby Drive, Suite 860. Houston, Texas 77098. (713) 524-7113 Sanitary Sewer Rehabilitation The project consists of rehabilitation of the 8" sanitary sewer main in the rear yard easement of the lots on the north side of Rustic Rock Road from Cedarmont Drive to Rosenberg Drive. The line is approximately 2,825 linear feet in length with approximately 79 services which will be reconnected by excavation. Existing manholes will also be rehabilitated. The preliminary estimated construction cost for the sanitary sewer rehabilitation is $217,875.00. SCOPE The scope of engineering services is as follows: Survey Services . Provide survey services on each of the water line project sites suitable for design. . Vertical elevation information will be based on the City of LaPorte datum. Geotechnical Service · Provide a geotechnical report presenting an investigation of the soils at the Belfast project location and Rustic Rock project location. · The geotechnical report will provide usual and customary information on the existing soil. It will include bedding and backfill recommendations, trench safety information. The report will be based upon information obtained from two borings along Belfast and two along Rustic Rock Road. Each boring will be approximately ten (10) feet deep on Belfast and 15 feet on Rustic Rock. PRELIMINARY ENGINEERING PHASE . Research existing utilities in the project areas. · Determine a recoIr.u'llended alignment for the new waterlines. · Determine construction method for the water lines and/or scheduling to minimize disruption of water service to the community. · Take photographs of all sites including all driveways on water line sites. Page 2 of 7 · Review and evaluate tapes provided by the City for the sanitary sewer rehabilitation project. · Determine the recommended rehabilitation method for the sanitary sewer project based on the tapes, geotechnical reports and other findings. · Prepare estimated construction costs for both projects. . Develop project schedules. · Prepare a letter report for each project presenting the findings, estimated costs, and schedules for the work. DESIGN ENGINEERING PHASE · Prepare detailed plan and profile drawings ofthe final designs as presented in the preliminary engineering reports. The water line plans will be at a scale of 1" = 20' horizontal and 1 II = 2' vertical. Separate plans and specifications will be prepared for each project. · The sanitary sewer rehabilitation project plans will be plan view only at a scale of 1 "-I 00'. · Prepare contract specifications for each project suitable for bidding. · Prepare an update of the construction cost based on the final design. · Furnish five (5) sets of construction documents of each project to the City of La Porte. CONSTRUCTION ADMINISTRATION PHASE · Assist the City in obtaining bids for the Projects. · Dispense construction documents from CMI's office to potential bidders. · During the bidding process, provide information to and answer questions from potential bidders concerning the Project's construction documents. · Evaluate the bids and the qualifications of the apparent low bidders and advise the City as to the acceptability of the apparent low bidders. · Act as the City's Project representative during the construction phase. · Review and respond accordingly to all submittals as required by the contract specifications. Page 3 of7 "~ · Consult and advise the City; issue all instructions to the Contractor requested by the City; and prepare and issue, as required, change orders with the City's approval. · Review the contractor's pay estimates, evaluate the completion of work and make payment recommendations to the City. · Visit the sites at intervals appropriate to the various stages of construction to observe the progress and quality of executed work and to determine in general if such work is proceeding in accordance with the Contract Documents. Such site visits are intended to be periodic in nature and are not intended to be full time site representation. · Claunch & Miller, Inc. (CMI) will not be responsible for the means, methods, techniques, sequences or procedures of construction selected by the Contractor( s) or the safety precautions and programs incident to the work of the Contractor(s). CMI's effort will be directed toward providing a greater degree of confidence for the City of La Porte that the completed work ofContractor(s) will conform to the Contract Documents, but CMI will not be responsible for the failure of Contractor(s) to perform the work in accordance with the Contract Documents. · Conduct a final inspection of the projects upon completion of the construction. Prepare a punch list of items to be completed by the contractor prior to final payment. Verify that the punch list items have been addressed to the City's satisfaction prior to final payment. · Prepare a recommendation for Final Payment for each project. · Provide as-built drawings based on contractor's redlines. CONSTRUCTION OBSERVATION · Provide a Project representative to observe and monitor the progress and quality of the work by the Contractors. It is anticipated that both projects will be commenced simultaneously with 90 calendar day time limits. · Provide daily reports on the status of the construction for each project. · Take color photographs of the Project's sites prior to construction. · Participate in the processing of submittals and change orders and the issuance of instructions as required by the City. · By providing a project representative, Claunch & Miller, Inc. (CM!) will not be responsible for construction means, methods, techniques, sequences or procedures or for safety Page 4 of7 precautions or programs, or for Contractor(s) failure to perform their work in accordance with the Contract Documents. ADDITIONAL SERVICES · "Additional Services" shall only be performed when directed by the City to CM!. These services are not considered normal or customary engineering services. · Services resulting from significant changes in the extent ofthe Project or its design including but not limited to changes in size, complexity, the City's schedule, or character of construction or method of financing; and revising previously accepted studies, reports design documents or Contract Documents when such revisions are due to causes beyond CMI's control. · Preparing documents for alternate bids requested by the City or documents for out of sequence work. · Preparing to serve or serving as a consultant or witness for the City in any litigation, public hearing or other legal or administrative proceeding involving the Project. · Additional or extended services during construction made necessary by (1) work damaged by fire or other cause during construction, (2) a significant amount of defective or neglected work ofContractor(s), (3) prolongation ofthe construction contract time, (4) acceleration of the progress schedule involving services beyond normal working hours and (5) default of contractor CMI will endeavor to apprise the City of any potential additional or extended services which may result from the above listed 5 items, prior to CMI's expenditure of time on such services. As previously noted, any such extended or additional services shall only be performed when directed by the City to CM!. · Additional services not otherwise provided for in the scope of services. Page 5 of7 FEE WATER LINE PROJECT Survey Services Claunch & Miller, Inc. 's fee for the field survey services is the lump sum amount of: $6,490.00 Geotechnical Services Claunch & Miller, Inc.'s fee for the geotechnical services is the lump sum amount of: $2,475.00 Preliminary En2ineerin~ Phase Claunch & Miller, Inc. 's fee for the preliminary engineering phase is the lump sum amount of: $5,700.00 Final Deshm Phase Claunch and Miller, Inc. will perform the Final Design Phase for the Lump Sum amount of: $17,000.00 Construction Administration Phase Claunch and Miller, Inc. will perform the Construction Administration Phase for the Lump Sum amount of: $4,000.00 WATER LINE SUBTOTAL $35,665.00 SANITARY SEWER REHABILITATION PROJECT Preliminarv En~ineerin~ Phase Claunch & Miller, Inc.'s fee for preliminary engineering phase is the lump sum amount of: $4,400.00 Final Desi~n Phase Claunch & Miller, Inc.'s fee for the final design phase is the lump sum amount of: $13,400.00 Page 6 of 7 Construction Administration Phase Claunch and Miller, Inc. will perform the Construction Administration Phase for the Lump Sum amount of: $3,100.00 SANITARY SEWER REHABILITATION SUBTOTAL $20,900.00 TOTAL $56,565.00 Construction Observation (For Both Projects) Claunch & Miller, Inc.ls fee for a site representative to provide the construction observation services shall be at an hourly rate of $ 55 per hour plus; $18.50 per day for vehicle expenses (includes vehicle expenses, mileage, gas, etc. for site representative only) and project costs plus 10%. Other labor charges such as office support services for the site representative will be billed at direct labor cost times a factor of 2.99. Based on a construction period of 90 days CM! recommends a budget be established for construction observation of $40,000.00. Additional Services Additional services beyond those described in the Scope of Services will be invoiced on the basis of direct labor cost times a factor of 2.99 and direct cost plus 10%. FEE SCHEDULE Claunch & Miller, Inc. will submit monthly progress invoices for all engineering work completed to invoice date. The invoices would be based on a percentage of completion of each phase applied to the lump sum fee. Claunch & Miller, Inc. appreciates the opportunity to submit this proposal and to continue working for the City of La Porte. Sincerely, CLAUNCH & MILLER, INC. et:::. ~m~ p. Senior Project Manager r- ~... JET /sc Page 7 of7 '~ LaPorte: Waterline Improvements 2001 SCHEDULE OF UNIT PRICE WORK PRELIMINARY COST ESTIMATE BASE UNIT PRICES FOR: ITEM ITEM DESCRIPTION UNIT QTY. UNIT PRICE IN TOTAL IN No. FIGURES FIGURES Belfast Road and Piney Brook Drive WATER: 1 8" PVC Open Cut L.F. 2,900 $ 32.00 $ 92,800.00 2 8" PVC Auger L.F. 145 $ 55.00 $ 7,975.0C 3 Fire Hydrants Each 5 $ 1,700.00 $ 8,500.00 4 6" F.H. Leads L.F. 40 $ 30.00 $ 1,200.00 5 12" x 8" T.S. & V. Each 1 $ 1,800.0C $ 1,800.00 6 8" Wet Connection Each 3 $ 1,200.00 $ 3,600.00 7 8" Cut and Plug Each 4 $ 900.00 $ 3,600.0C 8 Remove and Salvage Fire Hydrant & Each 4 $ 500.00 $ 2,000.00 Valve 9 Trench Safety L.F. 2,900 $ 2.00 $ 5,800.00 10 Short Service Each 22 $ 475.00 $ 1O,450.0C 11 Long Service Each 20 $ 475.0C $ 9,500.0C SUBTOTAL $ 147,225.00 SIDEWALK AND DRIVEWAYS: 12 Remove & Replace Sidewalk S.F. 11,400 $ 4.50 $ 51,300.00 13 Remove & Replace Driveway S.F. 5,500 $ 4.75 $ 26,125.00 SUBTOTAL $ 77,425.00 MISC. EXTRA WORK: 14 Extra Bank Sand C.Y. 50 $ 15.00 $ 750.00 15 Extra Concrete c.Y. 5 $ 100.00 $ 500.00 16 Misc. Extra - - 15% 01 SubTotal $ 333,885.00 SUBTOTAL $ 34,617.50 BELFAST AND PINEY BROOK TOT AI IC!: ?'iQ 7R'i 0(; LaPorte: Waterline Improvements 2001 SCHEDULE OF UNIT PRICE WORK PRELIMINARY COST ESTIMATE BASE UNIT PRICES FOR: ITEM ITEM DESCRIPTION UNIT QTY. UNIT PRICE IN TOTAL IN No. FIGURES FIGURES Catlett Lane and Big Island Slough WATER: 1 8" Water line Creek Crossing L.F. 150 $ 100.00 $ IS,OOO.OC 2 8" Wet Connection L.S. 2 $ 1,250.00 $ 2,500.0C 3 Misc. Extras -- -- 15% of Total $ 2,625.00 TOT A T l!: ?O 1'), (\(\ PROJECT TOTAL $279,910.00 LaPorte: Waterline Improvements 2001 SCHEDULE OF UNIT PRICE WORK PRELIMINARY COST ESTIMATE BASE UNIT PRICES FOR: Sanitary Sewer Rehabilitation between Rustic Rock Road and R . G R dN h fM I dD' dS th fR B D' ustlc ate oa ort 0 ~ewoo nve an ou 0 ose err: nve ITEM ITEM DESCRIPTION UNIT QTY. UNIT PRICE IN TOTAL IN No. FIGURES FIGURES SANITARY SEWER ITEMS: 1 Pipe Burst. Exist. 8" San. Swr., 0'-10' deep L.F. 1,825 $ 45.00 $ 82,125.00 2 Pipe Burst. Exist. 8" San. Swr., 11'-15' deep L.F. 1,000 $ 55.00 $ 55,000.00 3 Service Reconnection (by excavation) Each 79 $ 750.00 $ 59,250.00 4 Manhole Wall Liner V.F. 125 $ 100.00 $ 12,500.00 5 Obstruction Removal (by excavation) all Each 2 $ 2,000.00 $ 4,000.00 depths 6 Extra length for obstruction removal by L.F. 10 $ 75.00 $ 750.00 excavation 7 Trench Safety L.F. 1,000 $ 3.00$ 3,000.00 TOTAl $ 216,625.00 MISC. EXTRA WORK: 14 Extra Bank Sand C.Y. 50 $ 15.00 $ 750.00 15 Extra Concrete C.Y. 5 $ 100.00 $ 500.00 ESTIMATED CONSTRUCTION COST ~117~7'\~ REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date R~~';:t~r t3; 2000 Requested By: _~ S G'lIett Department: Public Wotks Appropriation Source of Funds: N/A Account Number: N/A Report: Resolution: Ordinance: xx Amount Budgeted: N/A Exhibits: Ordinance No. 00- Amount Requested: N/A Exhibits: WatlOr Service Al!reement Extension Budgeted Item: YES NO Exhibits: nri~jnal Water Service Agreement SUMMARY & RECOMMENDATION On June 12, 1995, City Council approved a Water Service Agreement with Akzo-Nobel, Chemicals, Inc., with water service beginning October 27, 1995. The Agreement was for a five- year period, and was based on a total of 550 on-site employees and contract employees, for a total average daily demand of27,500 gallons, or an average monthly demand of 838,750. With the recent purchase of an additional 3.5 million gallons per day of treated surface water at the Southeast Water Purification Plant, the City is able to continue supplying potable water outside the city limits. It is recommended that the Water Service Agreement between the City of La Porte and Akzo-Nobel be renewed, with the expiration date tied to the expiration of the new Industrial District Agreements, from June 12,2000 to December 31,2007. As with the current Agreement, it shall automatically expire at such time as there is no effective Industrial District Agreement. Action Required bv Council: Consider approval of Ordinance No. 00-_ authorizing the City to renew a Water Service Agreement with Akzo-Nobel Chemicals, Inc. Approved for City Council Al!enda ~~ -r. ~~ Robert T. Herrera, City Manager \t-'l...J0 Date ORDINANCE NO. 2000- /P{.S-S" AN ORDINANCE APPROVING AND AUTHORIZING AN EXTENSION OF THE WATER SEWER AGREEMENT BETWEEN THE CITY OF LA PORTE AND AKZO NOBEL CHEMICALS INC., FOR A TERM BEGINNING JUNE 12, 2000, AND EXPIRING DECEMBER 31, 2007; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking descr ibed in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the city Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. By: CITY OF LA PORTE 4:~~. Mayor ATTEST: vfl~ dl/k (j .IU/tI. Mart a A. Gillett City Secretary AP~ 1t!ch Knox W. Askins, City Attorney 2 WATER SERVICE AGREEMENT STATE OF TEXAS { { COUNTY OF HARRIS { This agreement made and entered into by and between the City of La Porte, a municipal corporation of Harris County, Texas, herein called "City", and Akzo Nobel Chemicals Inc., a corporation, hereinafter called "Company". 1. That certain water service agreement between the parties, dated June 12, 1995, is hereby renewed and extended by agreement of the parties, for a term commencing on June 12, 2000, and expiring on December 31, 2007, upon the terms and provisions of the prior water service agreement between the parties. Entered into effective the 12th day of June, 2000. AKZO NOBEL CHEMICALS INC. By: ;2 /~g,_______ Narte ~*';~ ;.,;;~~~~ Pasadena site Manager 13000 Bay Park Road Pasadena, TX 77507 BY:~~:/p-- orman L. Malone Mayor ATTEST: vfJ1 a1;/J~ !l !tiLJ- Martha A. Gil!ett City Secretary ~~~ Knox W. Askins City Attorney STATE OF TEXAS ~ COUNTY OF HARRIS ~ WATER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and Akzo Nobe 1 Chern; ca 1 sIne. . a corporation, hereinafter called "COMPANY". 1 COMPANY is the owner of certain real property which is situated in CITY'S Bayport Industrial District and not~within the corporate limits of the CITY. CITY and COMPANY are parties to a current Industrial District Agreement. CITY and COMPANY have entered into a ''Utility Extension A(ITeement" of even date herewith. which provides for the extension of CITY'S potable water to COMPANY'S propertY. II. COMPANY is desirous of purchasing potable water from CITY for usual human domestic consumption and uses, and not for use for industrial processes of any kind. Previous planning considerations for the long range potable water supply of CITY did not include the needs of property located outside the city limits of CITY. . COMPANY recognizes that CITY cannot at this time provide permanent and nn limited water service as requested. CITY agrees, however, to provide limited potable water service to COMPANY. For and in consideration of furnishing domestic potable water by CITY, the parties hereto agree as follows, to-wit: ill. CO:MP ANY has made the following representations to CITY as to its number of employees, as of ~e .~ate of this agreement, upon which representations CITY has relied in entering into this Agreement. Number of Employees on-site 3?5 Number of Contract Employees 225 Total on-site 550 IV. CITY has determined that adequate facilities are available to CITY to furnish potable water to CO:MP ANY based on the following terms and conditions, to~wit: (A) Payment to CITY of a one time anminil::trative connection charge of $15.000. (B) The average daily demand is established at 27.500 (_) gallons per day. This number is based on an average of fifty (50) gallons per employee per day established by CITY. (C) The average monthly demand of 838.750 () gallons is established by multiplying the average daily demand by a factor of 30.5, which shall be used . to facilitate service billings. (D) The cost of water up to the average monthly demand of 838.750 (--> gallons shall be one hundred fifty.percent (150%) of the CITY'S current rate as establisbed from time to time for commercial customers inside its corporate limits. (E) The cost of water for amounts used in excess of the established average monthly demand shall be two hundred percent (200%) of the CITY'S current rate as established from time to time for commercial customers inside its corporate limits. (F) Nothing contained in this Ae,oreement shall obligate CITY to furnish more than the average monthly demand of 838,750 C-) gallons. Repeated consumptions greater than the established average monthly demand may result in teimination of service. (G) CITY shall have the right to interrupt or temporarily suspend said water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of the citizens of La Porte. (H) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (I) The total cost for the engineering design and construction of the potable water main will be the responsibility of COMPANY. (J) COMPANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. (K) All plumbing installed by COMPANY connected to the domestic water line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and code enforcement personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY plumbing inspectors shall have the right to inspect any and all work related to the furnishing of potable water to COMPANY. (L) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. (M) The potable water supply system will be segregated from any existing and future COMPANY fire protection system. (N) There shall be no resale of !he water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. ~ v. All expenses of the installation of the meter; service lines from the main to the meter; and from the meter to COMPANY'S facilities, shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own the meter. VI. CITY shall have final authority over size, location, materials, and other engineering matters concerning the extension of water mains to COMPANY'S property. These matters are the subject of a Utility Extension Agreement between the parties, of even date herewith. CITY will have ownership and maintenance responsibility for its water mains, up to COMPANY'S water meter. In the event the Harris County license, permit, or permission to install the water main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water facilities, and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notify COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. VIIT. CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure ~y defects. Failure to correct defects within ten (10) days may result in termination of Agreement. CITY shall have the right ~o summarily correct, at COMPANY's expense, any defect or deficiency, when in its opinion the integrity pf the public water supply is threatened. IX. Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare. for..transition to another water supply. H the transition is not complete within said six month period, CITY shall have the right to terminate water service at its sole discretion. x. In the event of any conflict between the terms and provisions of this Water Service Agreement and a Utilitv Extension A2reement of even date herewith. and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Water Service Agreement and the Utilitv Extension Aereement shall control, to the extent of such conflict. The term of this Agreement shall be for five years plus any renewals and extensions thereof. However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right of termination. ENTERED INTO effective the 12 day of June . 1995. Akzo Nobel Chemicals Inc. Company By: fJuJhA~~ Name: Paul A. Gri ssom Title: Pasadena Site Manager Address: 13000 Bay Park Rd Pasadena. TX 77507 ~: (L~ ~ L~~~ru } i;; By. CITY OF LA PORTE !t~~~4 Norman . alone Mayor AP~VED~~ . Knox W. Askins City Attorney 'City of La Porte PO Box 1218 La Porte, TX 77572-1218 Phone: (713) 471-1886 Fax: (713) 471-2047 By: <3.~ -r. ~ Robert T. Herrera City Manager City of La Porte PO Box 1115 La Porte, TX 77572-1115 Phone: (713) 471-5020 Fax: (713) 471-7168 - - REQUEST FOR CITY COUNCIL AGENDA ITEM Department: Agenda Date Requested: Appropriation Requested By: Source of Funds: Various Account N urn ber: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The Texas Municipal Retirement System Act allows member cities to adopt Updated Service Credits and annuity increases, providing cities the opportunity to upgrade retirement benefits for both active employees and retirees who are currently receiving a monthly annuity from the system. By adopting the 100% Updated Service Credit effective January 1,2001, the members' retirement benefit will be recalculated based on the members' average monthly salary for the previous three years. The members' retirement benefit is "updated" based on the higher wages earned in recent years. Adoption of the ordinance also increases the monthly annuities being paid to City of La Porte retirees. The increase than can be granted is calculated based on a maximum of 70% of the change in the Consumer Price Index, less any previously granted increases. This ordinance is non-repeating and will be effective January 1, 2001. Any future updates will require adoption of a new ordinance. Adopting this ordinance will increase the City's contributions by approximately $27,000 in 2001. This ordinance will affect all current employees, approximately 365, and 44 retirees. Action ReQuired by Council: Adopt Ordinance 2000-1875-H authorizing Updated Service Credits and increased annuities for 2001. Approved for City Council A2:enda ~~ 'f. \~~ Robert T. Herrera, City Manager Date ORDINANCE NO. 2000-1875-H AN ORDINANCE AMENDING ORDINANCE 1875, AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED SERVICE CREDITS" IN SAID SYSTEM FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM WHO PRESENTLY ARE IN THE EMPLOYMENT OF THE CITY OF LA PORTE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. Authorization of Updated Service Credits. (a) On the terms and conditions set out in Sections 853.401 through 853.403 of Subtitle G of Title 8, V.T.C.A., Government Code, as amended (hereinafter referred to as the "TMRS Act"), each member of the Texas Municipal Retirement System (hereinafter referred to as the "System") who has current service credit or prior service credit in the System in force and effect on the 1 st day of January of the calendar year preceding such allowance, by reason of service in the employment of the City, and on such date has at least 36 months of credited service with the System, shall be and is hereby allowed "Updated Service Credit" (as that term is defined in subsection (d) of Section 853.402 of said title) in an amount that is 100% of the "base Updated Service Credit" of the member (calculated as provided in subsection (c) of Section 853.402 of said title). The Updated Service Credit hereby allowed shall replace any Updated Service Credit, prior service credit, special prior service credit, or antecedent service credit previously authorized for part of the same service. (b) On the terms and conditions set out in Section 853.601 of said title, any member of the System who is eligible for Updated Service Credits on the basis of service with this City, and who has unforfeited credit for prior service and/or current service with another participating municipality or municipalities by reason of previous service, and was a contributing member on the 1 st day of January of the calendar year preceding such allowance, shall be credited with Updated Service Credits pursuant to, calculated in accordance with, and subject to adjustment as set forth in said 853.601. (c) In accordance with the provisions of subsection (d) of Section 853.401 of said title, the deposits required to be made to the System by employees of the several participating departments on account of current service shall be calculated from after the date aforesaid on the full amount of such person's earnings as an employee of the City. Section 2. Increase in Retirement Annuities. (a) On terms and conditions set out in Section 854.203 of Subtitle G of Title 8, V.T.C.A., Government Code, as amended, the City hereby elects to allow and to provide for payment of the increases below stated in monthly benefits payable by the System to retired employees and to beneficiaries of deceased employees of this City under current service annuities and prior service annuities arising from service by such employees to this City. An annuity increased under this Section replaces any annuity or increased annuity previously granted to the same person. (b) The amount of annuity increase under this Section is computed as the sum of the prior and current service annuities on the effective date of retirement of the person on whose service the annuities are based, multiplied by 70% of the percentage change in Consumer Price Index for All Urban Consumers, from December of the year immediately preceding the effective date of the person's retirement to the December that is 13 months before the effective date of this ordinance. ORDINANCE NO. 2000-1875-H PAGE 2 (c) An increase in an annuity that was reduced because of an option selection is reducible in the same proportion and in the same manner that the original annuity was reduced. (d) If a computation hereunder does not result in an increase in the amount of an annuity, the amount of the annuity will not be changed hereby. (e) The amount by which an increase under this Section exceeds all previously granted increases to an annuitant is an obligation of this City and of its account in the municipality accumulation fund of the System. Section 3. The City Council finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. Subject to approval by the Board of Trustees of Texas Municipal Retirement System, the updated service credits and increases in retirement annuities granted hereby shall be and become effective on the 1 st day of January 2001 PASSED AND APPROVED, this the 13th day of November, 2000. ATTEST: LfJlIf?/tAa~'?// CITY OF LA PORTE BY/~/C/?-- Norman L. Malone, Mayor Martha Gillett City Secretary Knox W. Askins City Attorney REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Auurouriation Requested By:. Source of Funds: Medical Fund Department: Account Number: 014 6144 515 6011 Report: Resolution: Ordinance: Amount Budgeted: Exhibits: Correspondence from Neal Welch Amount Requested: Budgeted Item: @ NO Exhibits: Bid Tabualation Exhibits: SUMMARY & RECOMMENDATION The City maintains a self-funded health plan administered by the Texas Municipal League with a Pharmacy Benefit Management (pBM), currently administered by Express Scripts. Express Scripts has had a less than satisfactory record in regard to customer service. We asked our consultant, The Welch Company to evaluate our current needs, develop a request for proposal, evaluate the responses and make a recommendation for the City's PBM. Of the three proposals received, The Welch Company is recommending that the City contract with AdvancePCS to provide this service to our employees and retirees. Staff concurs. Net savings over the current provider is estimated at $5,000 per year. Action Reauired bv Council: Authorize the City Manager or his designee, to approve an agreement with AdvancePCS to provide a Pharmacy Benefit Management program for the City. Approved for City Council Al!enda G<~T~ l~~ Robert T. Herrera, City Manager l\.-""l- u0 Date o AdvancePCS July 10, 2001 VIA FEDERAL EXPRESS Louis Rigby Director of Administration 604 West Fairmont Parkway LaPorte, Texas 77572-1115 RE: Managed Pharmacy Benefit Services Agreement between City of LaPorte and AdvancePCS, L.P., et al. ("Agreement") Dear Mr. Rigby: For your records, I have enclosed an original fully executed Agreement referenced above. I am pleased we were able to finalize this Agreement. If I can be of assistance to you in the future, please contact me. With kindest regards, Jge:~~U/)f Client Contract Manager Enclosure 5215 North O'Connor Boulevard Suite 1600 / [ruing, TX 75039 ph 469.420.600() Fax Num.ber: Executive / 469.420.6196 Accounting / 469.420.6169 HUlflnn Resources /469.420.6008 Legal / 469.420.6008 Marketing / 469.420.6168 ADV ANCEPCS, L.P. MANAGED PHARMACY BENEFIT SERVICES AGREEMENT This Managed Pharmacy Benefit Services Agreement effective as of January 1, 2001, is entered into by and between AdvancePCS, L.P., a Delaware limited partnership, as an indirect wholly owned subsidiary of AdvancePCS, a Delaware Corporation, together with its affiliates ("AdvancePCS") and City of LaPorte ("Client"). PRELIMINARY STATEMENTS A. Client provides a pharmacy benefit to certain individuals emolled and entitled to benefits under the Client's benefit plans. B. Pursuant to the terms and conditions of this Agreement, Client desires to retain AdvancePCS to provide, and AdvancePCS desires to provide for Client, pharmacy benefit management services including without limitation (i) mail service pharmacy, (ii) claims processing, retail network management and payment of claims to participating pharmacies for prescription drugs furnished to Eligible Members, and (iii) formulary development and management services, (iv) certain patient compliance, therapeutic interchange, and generic substitution programs and (v) disease management services (collectively, the "PBM Services"). TERMS OF AGREEMENT NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto, intending to be legally bound, hereby agree as follows: 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall have the meanings herein specified for all purposes of this Agreement, including singular and plural forms of any terms herein defined. "AdvancePCS" shall mean AdvancePCS, L.P., a Delaware limited partnership, as an indirect wholly owned subsidiary of AdvancePCS, a Delaware Corporation, together with its affiliates. "Agreement" shall mean this Managed Pharmacy Benefit Services Agreement. "Approved Claims" shall have the meaning assigned to such term in Section 3( d)(iii) hereof. "A WP" shall mean the average wholesale price of the drug dispensed, as set forth in the current price list in recognized sources such as Medi-Span Prescription Pricing Guide, including its supplements, or other nationally recognized pricing sources determined by 1 LI...lclientslcity-laportelagmtlk-1d [revise 2/7/2001 @3:10 PM] AdvancePCS. The applicable A WP for prescriptions dispensed by retail pharmacies is based on the package size submitted. The applicable A WP for prescriptions dispensed by the mail service pharmacy is based on units of 100 for tablets and capsules, pints for liquids, or smaller quantities if such quantities are not available, and actual package size for all other items. "Client" shall mean City of LaPorte. "DUR" shall mean drug utilization review. "Effective Date" shall mean the day that PBM Services begin for each Plan covered by this Agreement. "Eligibility Tape" shall have the meaning assigned to such term in Section 3(a) hereof. "Eligible Member" shall mean each individual who is included on the Eligibility Tape and the updates thereto as being entitled to benefits under a Plan. "Generic Drug" means the chemical and generic name as determined by the United States Adopted Names Council (USANC) and accepted by the Federal Food and Drug Administration (FDA), of those drug products having the same active ingredients as a drug product prescribed by its trade or brand name. "MA C' shall mean the then current maximum allowable cost for a prescription drug listed as a drug available from more than one manufacturer in AdvancePCS' pharmaceutical MAC pricing formula, including but not limited to formulas utilizing the Medi-Span Master Drug Pricing Source. "Medi-Span Databases" means the data provided to AdvancePCS by Medi-Span, Inc. for use in AdvancePCS' pricing methods and/or DUR programs. "Participating Pharmacy" shall mean each retail pharmacy participating III the AdvancePCS Pharmacy Network. "PBM Services" shall mean pharmacy benefit management services as defined in the Preliminary Statements. "Plan" shall mean each of the Client's prescnptlOn drug benefit plans for which AdvancePCS will provide PBM Services under this Agreement. "Prescription" shall mean a valid and legal order to dispense to an Eligible Member for his or her own use a drug legally eligible for dispensing under the laws and regulations of the United States, including the Food and Drug Administration and the state laws in which the dispensing facility is located. 2 L\...\c1ients\city-laportelagmtlk-1d [revise 2/7/2001 @ 3:10 PM] "Quarter" shall mean each three month period of a calendar year commencing on each January 1, April 1, July 1 and October 1. 2. Plan Information. At least thirty (30) days prior to the Effective Date of each Plan, Client shall provide AdvancePCS with certain Plan information not otherwise in the possession of AdvancePCS and necessary for AdvancePCS to perform or provide PBM Services, including without limitation benefit certificates, eligible drugs, co-pays, deductibles, maximum allowance benefits, investigational drug usage, generic drug usage, and any drugs excluded under the Plan. 3. Pharmacy Benefit Mana!!ement Services. AdvancePCS shall provide PBM Services for Client's Plans in accordance with the terms and conditions of this Section 3. (a) Eligibilitv Tape and Updates. At least seven (7) days prior to the Effective Date of each Plan, Client shall provide AdvancePCS with a complete and final eligibility file in a format consistent with AdvancePCS' requirements which shall identify all Eligible Members and set forth all pertinent eligibility data (the "Eligibility Tape"). Client shall provide updates to the Eligibility Tape to AdvancePCS in a format consistent with AdvancePCS' requirements as frequently as mutually agreed to by the parties hereto. Subject to receipt of confirmation from Client as to the accuracy of each update to the Eligibility Tape, within two business days of AdvancePCS' receipt of such update, AdvancePCS shall enter the eligibility data into its computer system and thereafter shall accept claims for covered Prescriptions that are dispensed to Eligible Members after the effective date of their eligibility and deny claims for covered Prescriptions that are dispensed to terminated members after the effective date of their termination. AdvancePCS and the Participating Pharmacies shall be entitled to rely on the accuracy and completeness of the Eligibility Tape and updates thereto provided by Client. (b) Formulary Development and Management Services. AdvancePCS shall provide formulary development and management services in accordance with this Section 3(b). (i) Formulary Services. AdvancePCS shall develop and maintain a formulary for the benefit of the Plan (the "Formulary") and recommend clinically appropriate, cost effective strategies designed to promote Formulary compliance. On or before the Effective Date of each Plan, AdvancePCS will deliver to Client a reasonable number of copies of the Formulary in one of AdvancePCS' standard formats selected by Client for Client's distribution to those physicians included in a Plan's provider network and/or Eligible Members. AdvancePCS shall reprint once in each twelve month period copies of the Formulary selected by Client for Client's distribution annually to Eligible Members and, in the case of a physician managed Plan, to physicians included in a Plan's provider network; subject to the costs and expenses set forth in Exhibit A attached hereto. Client further agrees to cooperate with 3 LI...lclientslcity-laportelagmtlk-1d [revise 21712001 @ 3:10 PM] AdvancePCS and, when possible, to facilitate the implementation of recommended Formulary strategies, including without limitation, hard edit blocks, differential patient co-pays, soft edits (e.g. on-line formulary messages), promoting Formulary compliance to pharmacists and therapeutic interchange programs. Receipt of Rebates, as defined below, is contingent upon, among other things, Client's distribution of the Formulary in accordance with this section. Client acknowledges that if the Formularies are not distributed, then Client shall be solely responsible for the reimbursement of any Rebates for the Plans which do not have Formularies in place. (ii) Manufacturer Rebates. Upon adoption of the Formulary and meeting reasonable, generally applicable requirements for participating in AdvancePCS' rebate program, Client shall be eligible to receive rebates on certain prescription drugs dispensed by Participating Pharmacies to Eligible Members (the "Rebates"). AdvancePCS shall provide Client quarterly statements reflecting the aggregate amount of Rebates attributable to the Plan's drug utilization. The Rebate amount shall be distributed to Client, net any service fees due AdvancePCS, within thirty (30) days of receipt of Rebate payments from all drug manufacturers for the Quarter being adjudicated; provided, however, that Client's receipt of Rebates is contingent upon, among other things, Client's distribution of the Formulary in accordance with Section 3(b )(i). AdvancePCS may receive fees or other compensation from manufacturers, including, without limitation, administrative fees not exceeding three percent (3%) of the cost of the pharmaceutical products dispensed to Eligible Members, and fees for property provided or PBM Services rendered to a drug manufacturer (which may include providing physicians clinical messages consistent with the Formulary). The term "Rebates" as used in this Agreement does not include these fees, which belong exclusively to AdvancePCS. In addition, AdvancePCS may negotiate on its own behalf directly with manufacturers for discounts, including rebated discounts based on market share or other factors. The term "Rebates" as used in the Agreement does not include these discounts to AdvancePCS, which belong exclusively to AdvancePCS. (iii) Eligible Data. Drug utilization which has been submitted by any entity other than AdvancePCS (specifically including Medicaid, Medicare or other state or federal health care program which receives Rebates directly from drug manufacturers) to drug manufacturers for discounts, Rebates or other price reduction, shall not be eligible to participate in AdvancePCS' Rebate program. Client shall clearly identify to AdvancePCS those Eligible Members whose drug utilization has been otherwise submitted to drug manufacturers or whose claims have been or will be filed for reimbursement with Medicaid, Medicare or any other state or federal health care program. If Client fails to identify 4 LI...lclientslcity-laportelagmtlk-1d [revise 21712001 @ 3:10 PM] such members or claims and any drug manufacturer's audit of its Rebate program reveals improperly calculated Rebates involving such members and claims, then Client shall be solely responsible for the reimbursement of any Rebates improperly made based on such drug utilization. Notwithstanding the foregoing, this provision shall not be construed to prohibit Client from participating in Medicare risk contracting. (c) Mail Service. AdvancePCS shall fill Prescriptions for Eligible Members and shall mail such drugs or medications to such Eligible Members subject to the following terms and conditions: (i) Distribution of Information. AdvancePCS shall provide Client with reasonable copies of its standard informational material explaining the mail service and the forms necessary for Eligible Members to utilize mail service. Client shall distribute the mail service informational materials and forms to all Eligible Members. (ii) Delivery and Dispensing. AdvancePCS shall dispense through its mail service pharmacy new or refill Prescription orders upon receipt from an Eligible Member of (i) a valid Prescription order or a completed refill order form and (ii) the applicable co-payment. AdvancePCS shall cause the filled Prescriptions to be mailed to each Eligible Member via common carrier at the address set forth in the Eligibility List or as appearing on the face of the Prescription. AdvancePCS shall not be liable to either Client or Eligible Member for any delay in delivery resulting from circumstances beyond AdvancePCS' control as set forth in Section 14(i) of the Agreement. (iii) Mail Service Pharmacy. AdvancePCS shall operate its mail service pharmacy in compliance with state and federal pharmaceutical laws and regulations, including limitations imposed on controlled substances, and shall dispense only those prescription drugs which, in its sole discretion, fulfill requirements of the prescription writer and comply with applicable law. AdvancePCS shall have the right to refuse to fill or renew a Prescription for any Eligible Member when the Eligible Member has not satisfied his or her payment obligations or, in the pharmacist's professional judgment, the filling or renewing of such Prescription is not in the best interest of the Eligible Member or the pharmacist has reason to doubt the authenticity of the Prescription. AdvancePCS may from time to time implement programs through its mail service pharmacy to promote Formulary products. (iv) Generic Substitution. If a Prescription allows, and the patient agrees to the substitution of a less expensive Generic Drug, AdvancePCS' mail service pharmacy will fill the Prescription with a Generic Drug which, in the professional judgment of the dispensing pharmacist, fulfills the requirements of the Prescription and applicable laws. 5 LI...lclienlslcily-laportelagmllk-1d [revise 2f712001 @3:10 PM] (v) Patient Profiles and DUR. AdvancePCS shall request each Eligible Member to submit with his or her first mail order Prescription a form containing information regarding, among other things, any drug allergies of such Eligible Member. AdvancePCS shall utilize this information to develop a patient profile on each Eligible Member which will include the information submitted by such member as well as a history of Prescription Drugs dispensed to such member during the term of this Agreement. Each mail order Prescription will be subject to DUR based on the patient profiles and mail service utilization history as well as concurrent DUR through the Advance RxTM claims adjudication system (as further explained in Section 3 (d)(iv) hereof). AdvancePCS shall not be liable for any damages arising from the use or lack of use of such DUR services in accordance with Section IO of this Agreement. (vi) Toll Free Client Service. AdvancePCS shall maintain, at its sole expense, toll free numbers for inquiries of Client and Eligible Members relating to the PBM Services. (d) Retail AdvancePCS Pharmacy Network Services and Claims Adjudication. AdvancePCS shall adjudicate claims for Prescription Drugs furnished by pharmacies under the Plan in accordance with the following terms and conditions: (i) Distribution of Materials. AdvancePCS shall provide Client with reasonable copies of its standard informational material regarding the utilization of the AdvancePCS Pharmacy Network and claim forms for use by Eligible Members when needed. Upon receipt, Client will distribute all such information and claim forms to its Eligible Members. Client shall provide each Eligible Member with an identification card in a format mutually agreed to by AdvancePCS, for purposes of (among other things) accessing the Participating Pharmacies. (ii) AdvancePCS Pharmacy Network. AdvancePCS has created a network of Participating Pharmacies (the "AdvancePCS Pharmacy Networ!(') that is available to provide prescription drug services to Eligible Members using their identification cards. AdvancePCS shall process claims submitted by the Participating Pharmacies in accordance with AdvancePCS' agreements with such pharmacies. AdvancePCS shall furnish to each Participating Pharmacy such information regarding the applicable Plan and Eligible Members as is necessary for the operation of the Advance RxTM claims adjudication system. Client hereby authorizes AdvancePCS and represents that it has been authorized by the Plan(s) to permit AdvancePCS to release necessary information to the Participating Pharmacies regarding the applicable Plan and Eligible Members. 6 L\...\clients\city-laportelagmt\k-1d [revise 2/7/2001 @ 3:10 PM) (iii) Claims Adjudication. Through its on-line claims adjudication system, AdvancePCS shall (A) process electronic or manual claims submitted by pharmacies; (B) process AdvancePCS claim forms submitted by Eligible Members; (C) determine whether the claim qualifies for reimbursement in accordance with the terms of the applicable Plan and the Eligibility Tape; and (D) calculate the payment of such claims pursuant to the applicable Plan (each such claim an "Approved Claim"). AdvancePCS shall notify the submitting Participating Pharmacy or Eligible Member of nonreimburseable claims. (iv) Concurrent Drug Utilization Review. Through its on-line claims adjudication system, AdvancePCS shall provide on-line concurrent DUR messaging to the Participating Pharmacies and will take appropriate action based on Plan specifications. Concurrent DUR shall include, but not be limited to, the following edits: (A) duplicate therapy; (B) early refills and frequency limitations; (C) duplicate drug; (D) potential drug interaction(s), in which case the provider is notified on-line and the level of severity would be indicated; (E) drug preference screening; and (F) minimum/maximum dose range (which includes on-line alert of pharmacist). AdvancePCS shall not be liable for any damages arising from the use or lack of use of such concurrent DUR services in accordance with Section 10 of the Agreement. (e) Patient Compliance, Therapeutic Interchange and Generic Substitution Programs. AdvancePCS may from time to time provide to Client patient compliance, therapeutic interchange and generic substitution programs (the "Programs"). The fees, if any for such Programs shall be mutually agreed upon by the parties. Client warrants and agrees that it has all necessary releases from Eligible Members relating to delivery of patient specific identifiable information to AdvancePCS and its subcontractors, if any, so that AdvancePCS can fulfill its obligations hereunder to provide the Programs. (f) Disease Management Services. AdvancePCS may from time to time provide to Client disease management services (collectively, the "Disease Management Programs"). The fees, if any, for such Disease Management Programs shall be mutually agreed upon by the parties. Client warrants and agrees that it has all necessary releases from Eligible Members relating to the delivery of patient specific identifiable information so that AdvancePCS can fulfill its Disease Management Program obligations under this Agreement. AdvancePCS further warrants and agrees that it shall undertake and implement all necessary measures to maintain and protect the confidentiality of patient specific identifiable information provided to AdvancePCS in the course of the Disease Management Programs and that AdvancePCS shall comply with applicable confidentiality laws to obtain access to patient specific identifiable information so that AdvancePCS can fulfill its Disease Management Program obligations under this Agreement. 7 L\...\clients\city-laportelagmt\k-1d [revise 21712001 @ 3:10 PM] ADV ANCEPCS DISCLAIMS ALL OTHER WARRANTIES, EXPRESS, IMPLIED, AND STATUTORY, IN ANY COMMUNICATION WITH ADV ANCEPCS OR OTHERWISE, WITH RESPECT TO THE DISEASE MANAGEMENT PROGRAMS OR MATERIALS. ADVANCEPCS SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. (g) Management Information Reports. AdvancePCS shall provide Client with up to twelve (12) reports selected from AdvancePCS' standard reporting package. Any reports requested by Client other than AdvancePCS' standard reports shall be considered "Special Reports". Client agrees that for any additional reports or Special Reports, Client shall pay AdvancePCS for such reports in accordance with Section 4( c) set forth below. 4. Fees and Rates. (a) Fees for Services. Client agrees to pay AdvancePCS fees in consideration of the PBM Services rendered by AdvancePCS in the amounts set forth in Exhibit A attached hereto. (b) Rates for Prescription Claims. During the term of this Agreement, Client agrees to pay for Prescriptions dispensed to Eligible Members by the mail service pharmacy or the Participating Pharmacies, as the case may be, at the rates set forth in Exhibit A attached hereto. (c) Associated Costs Paid by Client. Client shall be responsible for the following costs and expenses collectively referred to as "Associated Costs": (i) Distribution Expenses. Except as otherwise specifically provided herein, Client shall be responsible for the costs and expenses incurred in the production of forms, materials and documents and the distribution thereof to Client or Eligible Members and for special handling of certain mail service prescriptions. (ii) Non-Standard or Excessive Services or Materials. In the event Client requests identification cards, non-standard services, forms, materials or documents, or standard services, forms, materials or documents in an amount which AdvancePCS determines to be unreasonable or excessive (collectively referred to herein as "additional services"), the parties will mutually agree upon in writing the fee to charge Client before such additional services are provided. (iii) Special or Excessive Reports. In the event Client requests any Special Reports or more than twelve (12) reports from AdvancePCS' standard reporting package ("additional reports"), Client shall pay any special programming charges (as defined below) and other charges, if applicable, at a rate to be mutually agreed upon by the parties in writing before any additional reports are provided. 8 LI...lclientslcily-laportelagmtlk-1d [revise 21712001 @3:10 PM] (iv) Special Programming. In the event Client requests a service, including Special Reports, that require special computer programming, Client shall pay for all associated costs including but not limited to AdvancePCS' internal programming time at a rate of$125 per hour or, if AdvancePCS must engage an outside vendor for programming, at the rate actually incurred by AdvancePCS for such service. 5. Payment. (a) Statement of Account. AdvancePCS shall submit to Client on a semi-monthly basis a statement of account (the "Statement of Account") that reflects the amount due for the Prescriptions dispensed and the fees due for the applicable period. (b) Payment of Statement of Account. Client agrees to pay the amount due reflected on the Statement of Account within two (2) business days of receipt of the Statement of Account by wire or electronic funds transfer to an account designated by AdvancePCS. ( c) Payment of Formulary/Clinical Service Fees. AdvancePCS shall be entitled to withhold the amount of its Formulary/Clinical Service Fees from each Rebate payment to be made to Client under Section 3(b )(ii). (d) Associated Costs Paid bv Client. AdvancePCS shall periodically invoice Client for any Associated Costs or include same in a Statement of Account. Client shall include payment for an invoice with its first semi-monthly payment following receipt of such invoice. (e) Cessation of Services. Should Client, for any reason, fail to pay timely any Statement of Account in accordance with Section 5(b) hereof, or become insolvent or generally unable to pay its creditors when due, AdvancePCS shall be entitled to cease adjudication of claims and/or the dispensing of Prescriptions under this Agreement while maintaining all of AdvancePCS' rights hereunder. (f) Interest on Late Payments. Client shall pay a finance charge on any unpaid balance which becomes past due until paid in full. A balance is past due if it is not paid by the 15th day following receipt of an invoice or Statement of Account. The finance charge shall be in an amount equal to one and one-half percent (1.5%) per month, unless such rate exceeds the maximum rate allowable by applicable law, in which case such amounts shall bear interest at the maximum legally allowable rate. (g) Right of Offset. In the event of any uncured payment default, AdvancePCS shall be entitled, and Client hereby authorizes AdvancePCS, to offset the amount of such payment defaults against any Plan-related amounts otherwise payable to Client. 9 LI...lclientslcity-laportelagmtlk-1d [revise 2/7/2001 @ 3:10 PM) 6. Records. AdvancePCS shall maintain, in original form, on microfilm or computer tape, documentation of all claims processed and Prescriptions filled via mail service for seven (7) years. Subject to Section 11(a) hereof, all such records, while maintained by AdvancePCS, shall be accessible to Client for examination and audit during the term of this Agreement. In addition, AdvancePCS shall maintain, in original form, on microfilm or computer tape, a copy of this Agreement in accordance with applicable law. 7. Term and Renewal. Unless otherwise terminated in accordance with Section 8 herein, or otherwise extended, this Agreement shall commence on January 1, 2001, and end on December 31, 2003. This Agreement shall automatically renew for a twelve-month period on January 1, 2004, and on each January 1 st thereafter (each a "renewal date"), unless either party notifies the other in writing at least sixty (60) days prior to the renewal date of such year of its intent to terminate this Agreement. 8. Termination and Default. (a) Termination. In addition to AdvancePCS' right under Section 5(e) hereof, this Agreement may be terminated as follows: (i) Upon the mutual written consent of the parties hereto; (ii) Either party may terminate this Agreement at any time in the event of a material default by the other party. Such termination shall be effective sixty (60) days after receipt by the defaulting party of written notice specifying the default, unless the default is cured before the end of the sixty-day period; (iii) At either party's option, if the other party becomes insolvent or seeks protection voluntarily or involuntarily, under any bankruptcy laws; (iv) The parties acknowledge that federal and state healthcare reform measures and legislation are continuously considered by government agencies and that the relationships among health care providers and organizations are continuously challenged through litigation and government investigation. If such a proposal is enacted or if any such litigation or investigation has a significant impact on this Agreement as a whole or upon any segment as a part, upon notice from either party, the parties agree to negotiate in good faith for a sixty-day period the terms and conditions of this Agreement to address any problems such legislation or judgment may cause. If the parties are unable to reach agreement within such sixty-day period, either party may terminate this Agreement upon no less than thirty (30) days' prior written notice to the other party. 10 L\...\clients\city-laportelagmt\k-1d [revise 2/7/2001 @3:10 PM] (b) Payment Obligations Upon Default. In the event either AdvancePCS or Client terminate this Agreement in accordance with the terms of Section 8(a), all unfulfilled payment obligations for any of the services provided herein shall be paid within thirty (30) days of the effective date of such termination; provided that all Rebates shall be payable to the Plan within thirty (30) days of receipt from the manufacturer. 9. Indemnification. (a) AdvancePCS and its officers, directors, employees, agents, successors and assigns ("AdvancePCS Indemnitees") shall be indemnified and held harmless by Client against any damage, cost or attorney's fees, actually incurred by an AdvancePCS Indemnitee, as the result of a claim brought by any third party or a participant or beneficiary relating to the PBM Services, provided that the AdvancePCS Indemnitees have acted in a manner that is consistent with this Agreement and applicable standards of care. (b) The Client and its officers, directors, employees, agents, successors and assigns ("Client Indemnitees") shall be indemnified and held harmless by AdvancePCS against any damage, cost or attorney's fees, actually incurred by any Client Indemnitee, as the result of a third party claim that AdvancePCS, its officers, directors, employees, agents, successors or assigns acted with gross negligence, willfully and/or in violation of applicable standards of care, provided that the Client Indemnitees have acted in a manner that is consistent with this Agreement, the Plan and applicable standards of care. 10. Limitation of Liabilitv. IN NO EVENT SHALL ADV ANCEPCS BE LIABLE TO CLIENT OR ANY ELIGIBLE MEMBER FOR ANY INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES OR LOST PROFITS, ARISING OUT OF OR RELATED TO ADV ANCEPCS' PERFORMANCE UNDER THIS AGREEMENT OR BREACH HEREOF, EVEN IF ADV ANCEPCS HAS BEEN ADVISED OF THE POSSIBILITY THEREOF. ADVANCEPCS' LIABILITY TO CLIENT UNDER THIS AGREEMENT, IF ANY, SHALL IN NO EVENT EXCEED THE TOTAL AMOUNT OF COMPENSATION DUE ADVANCEPCS FOR THE PRIOR TWELVE (12) MONTHS OF THIS AGREEMENT. ADVANCEPCS RELIES ON MEDI-SPAN OR INDUSTRY COMPARABLE DATABASES IN PROVIDING CLIENT AND ELIGIBLE MEMBERS WITH DRUG UTILIZATION REVIEW SERVICES. ADV ANCEPCS HAS UTILIZED DUE DILIGENCE IN COLLECTING AND REPORTING THE INFORMATION CONTAINED IN THE DATABASES AND HAS OBTAINED SUCH INFORMATION FROM SOURCES BELIEVED TO BE RELIABLE. ADV ANCEPCS, HOWEVER, 11 LI...lclientslcity-laportelagmtlk-1d [revise 2/7/2001 @3:10 PM] DOES NOT WARRANT THE ACCURACY OF REPORTS, ALERTS, CODES, PRICES OR OTHER DATA CONTAINED IN THE DATABASES. THE CLINICAL INFORMATION CONTAINED IN THE DATABASES AND THE FORMULARY IS INTENDED AS A SUPPLEMENT TO, AND NOT A SUBSTITUTE FOR, THE KNOWLEDGE, EXPERTISE, SKILL, AND JUDGMENT OF PHYSICIANS, PHARMACISTS, OR OTHER HEALTH-CARE PROFESSIONALS INVOLVED IN ELIGIBLE MEMBERS' CARE. THE ABSENCE OF A WARNING FOR A GIVEN DRUG OR DRUG COMBINATION SHALL NOT BE CONSTRUED TO INDICATE THAT THE DRUG OR DRUG COMBINATION IS SAFE, APPROPRIATE OR EFFECTIVE IN ANY ELIGIBLE MEMBER. 11. Audit. (a) Audits of Eligible Members and Business Records. Client shall have the right to inspect and audit the business records of AdvancePCS which directly relate to billings made to Client for claims reimbursement. AdvancePCS shall have the right to inspect and audit, or cause to be inspected and audited, the books and records of Client directly relating to the existence and number of Eligible Members. Client and AdvancePCS shall fully cooperate with representatives of each other and with independent accountants hired by either party to conduct any such inspection or audit. Such audits shall be at the auditing party's sole expense and shall only be made during normal business hours, following fifteen (15) days written notice, and without undue interference to the audited party's business activity. If, after completion of the audit under this Section ll(a), the audit reveals a discrepancy in the results of the audit and the previous calculations of the audited party, then the auditing party shall deliver written notice which sets forth in reasonable detail the basis of such discrepancy. The parties shall use reasonable efforts to resolve the discrepancy within 30 days following delivery of such notice, and such resolution shall be final, binding and conclusive upon the parties hereto. (b) Right to Audit Rebates. Client, at its sole expense, shall have the right to audit the Rebates once in each twelve-month period (following fifteen (15) days written notice to AdvancePCS) for the purpose of validating the accuracy of the Rebate amounts distributed to Client by AdvancePCS. Client and AdvancePCS agree that an independent accounting firm agreeable to the parties hereto shall conduct such audit, and that such firm will sign a confidentiality statement with AdvancePCS insuring that all details and terms of all manufacturers Rebate contracts with AdvancePCS (except the total aggregate amount due to Client) will be treated as confidential to AdvancePCS and will not be revealed in any manner or form by or to any person or entity. The report and determination of the independent accounting firm under this Section 11 (b) shall be final, binding and conclusive on AdvancePCS and Client. (c) Payment of Discrepancies. Upon a final and conclusive determination of a discrepancy revealed by an audit procedure under this Section 11, the party which 12 L\...\clients\city-laportelagmt\k-1d [revise 2/7/2001 @ 3:10 PM] owes money shall pay such sums to the other party within fifteen (15) days of the delivery of the conclusive audit findings. 12. Exclusivity. Client hereby grants AdvancePCS during the term of this Agreement, and any renewals hereof, the exclusive right to provide to Client PBM Services. Client further agrees that, during the term of this Agreement, and any renewals hereof, it will not negotiate, contract, or agree with any drug manufacturer for the purpose of obtaining drug Rebates. Client also agrees to cancel any existing agreements or contracts with any drug manufacturers related to such drug Rebates as of the Effective Date of this Agreement unless otherwise approved by AdvancePCS, which approval shall not be unreasonably withheld. 13. Confidentiality. (a) Confidential and Proprietarv Information. Client and AdvancePCS each recognize and acknowledge that, by receipt and possession of certain information relating to the business operations of the other, each will discover certain of the other's confidential and proprietary information, skills, know-how, technical expertise, and methods. This confidential and proprietary information includes, but is not limited to: (a) the terms of this Agreement, (b) the format of all reports generated by the parties under this Agreement, and (c) details of the operation of the PBM Services. Client also acknowledges that the Formulary is the proprietary trade secret of AdvancePCS. Each party acknowledges and agrees that such information is confidential, valuable and proprietary to the business of each party, and that each party's success and ability to compete depends on keeping such information confidential. Each party hereto covenants and agrees not to, directly or indirectly, and agrees to cause its officers, directors, employees, agents and affiliates not to, use, publish, disseminate or otherwise disclose, any of the other party's confidential or proprietary information now or later possessed by each, without prior written consent of the other party; provided, however, that the Formulary may be distributed solely as otherwise required in this Agreement. (b) Confidentiality of Eligible Members. The parties shall maintain the confidentiality of any information relating to Eligible Members in accordance with applicable laws and regulations. Client shall insure that the release of information relating to Eligible Members to AdvancePCS and Client is duly authorized. Upon receipt of a validly issued subpoena, court or administrative order or a request for information that is signed by an Eligible Member, AdvancePCS shall be entitled to release such information in accordance with the subpoena, order or request. AdvancePCS shall be entitled to assume the genuiness of all signatures, the authenticity of all such requests, orders and subpoenas, the conformity of copies of such requests, orders or subpoenas to the original or that the persons executing such requests, orders and subpoenas have full power and authority to deliver same. 13 LI...lclientslcity-laportelagmtlk-1d [revise 2/7/2001 @3:10 PM] (c) Breach of Confidentiality Covenant. AdvancePCS and Client acknowledge that any violation or breach of confidentiality would cause irreparable harm and that such harm cannot be adequately compensated in money damages. AdvancePCS and Client agree that any such violation or breach may be enjoined by any court of competent jurisdiction, without waiver of any other right to claim damages incurred by either AdvancePCS or Client in connection with such a violation. 14. General. (a) Notice. Any notice required to be given pursuant to the terms and provisions of this Agreement shall be in writing and shall be sent by certified mail, return receipt requested, or by overnight delivery service or by facsimile transmission confirmed by telephone conversation (recorded message is not sufficient), at the addresses and facsimile numbers below or such other address or number as shall be specified by the parties by like notice. to AdvancePCS at: AdvancePCS, L.P. Attn.: Executive Vice President - Client Management 11350 McCormick Road Executive Plaza II Suite 1000 Hunt Valley, Maryland 21031 Telephone: (800) 426-4488; Fax No.: (410) 785-2595 With a copy to the following if the notice concerns Sections 4-14 - AdvancePCS Attn.: General Counsel 9501 East Shea Boulevard Scottsdale, Arizona 85260-6719 Irving, Texas 75039 Telephone: (480) 314-8349; Fax No.: (480) 314-8231 and to Client at: City of LaPorte Attn: Louis Rigby Director of Administration 604 West Fairmont Parkway LaPorte, Texas 77572-1115 Telephone: (281) 471-5020; Fax No. (281) 470-7650 14 LI...lclientslcity-laportelagmtlk-1d [revise 2/7/2001 @3:10PM] (b) Binding Nature and Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and assigns. Neither party may assign this Agreement without the prior written consent of the other; provided, however, that either party may transfer or assign its rights and obligations under this Agreement, to any affiliate, and provided further that no such assignment shall have the effect of releasing such party from any of its obligations under this Agreement. (c) Headings and Interpretation. The headings of the various sections of this Agreement are inserted for convenience only and do not, expressly or by implication, limit, define or extend the specific terms ofthe section so designated. (d) Governing Law. The validity, enforceability, and interpretation of this Agreement shall be determined and governed by the internal laws of the State of Texas (and not the law of conflicts). (e) Entire Agreement. This Agreement contains all the terms and conditions agreed upon by the parties, and supersedes all prior understandings, writings, proposals, representations, or communications, oral or written, of the parties hereto. This Agreement may not be modified, amended or changed except by a written agreement signed by the parties. (f) Authority. AdvancePCS and Client warrant that each has full power and authority to enter into and perform this Agreement, and the person signing this Agreement on behalf of each party certifies that such person has been properly authorized and empowered to enter into this Agreement on behalf of such party. (g) Non-Competition in Hiring. During the term of this Agreement, and for a period of one (1) year thereafter, Client shall not, without the prior written consent of AdvancePCS, knowingly employ or solicit for hire, or knowingly allow its officers, directors, agents or affiliates to employ or solicit for hire, any employees of AdvancePCS. (h) Non- Waiver. The failure of either party to insist, in anyone or more instances, upon performance of any of the terms, covenants or conditions of this Agreement shall not be construed as a waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure shall in no way affect the validity of this Agreement or the rights and obligations of the parties hereunder. (i) Relationship of Parties. This Agreement shall not constitute or otherwise imply a joint venture, pooling arrangement, partnership or formal business organization of any kind. Both parties shall be considered independent contractors and neither party shall be considered an agent of the other. Under no circumstances shall employees of one party be deemed the employees of the other party. 15 LI...lclientslcity-laportelagmtlk-1d [revise 2f7!2001 @3:10 PM] (j) Force Majeure. Neither party shall be liable for any failure or delay in performing all or part of its obligations under the terms of this Agreement resulting from unavailability of pharmaceuticals, legislative action, war, acts of any person engaged in a subversive activity, sabotage, riot, strikes, slow-downs, lock-outs, or labor stoppage, freight embargoes, fires, explosions, flood, earthquake or other acts of God, or by reason of the judgment, filing or order of any court or agency of competent jurisdiction occurring subsequent to the signing of this Agreement, or any other circumstances beyond its control. (k) Authority of AdvancePCS. Client acknowledges that it has the sole authority to control and administer the Plan. Client further acknowledges that AdvancePCS is engaged to perform the services under this Agreement as an independent contractor and not as a fiduciary of the Plan or as an employee or agent of Client, or any Plan contract administrator. Nothing in this Agreement shall be construed or deemed to confer upon AdvancePCS any responsibility for or control over the terms or validity of the Plan. AdvancePCS shall have no final discretionary authority over or responsibility for the Plan's administration. Further, because AdvancePCS is not an insurer, plan sponsor, third party administrator, plan contract administrator, or a provider of health services to Eligible Members, AdvancePCS shall have no responsibility for (i) any funding of Plan benefits; (ii) any insurance coverage relating to Client or any Plan contract administrator, the Plan or Eligible Members; or (iii) the nature or quality of professional health services rendered to Eligible Members. (1) Survival. Should any part, term or condition of this Agreement be declared illegal or unenforceable or in conflict with any other laws, the remaining provisions shall be valid and not affected thereby. (m) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument. (n) Departments of Insurance. The parties acknowledge that each party is subject to the statutes and regulations in the states in which this Agreement will be performed. The parties acknowledge that the laws and regulations of several states permit Departments of Insurance to have access to AdvancePCS' books and records relating to this Agreement for purpose of examination, audit and inspection, subject to confidentiality obligations. (0) Further Assurances. From time to time upon request and without further consideration, the parties hereto shall, and shall cause their subsidiaries, to execute, deliver or acknowledge such documents and do such further acts as the other party hereto may reasonably require to effectuate its obligations contemplated by this Agreement. 16 L\...\c1ients\city-laporte\agml\k-1d [revise 2/7/2001 @3:10 PM] IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their proper and duly authorized officers on the date first above written. By executing the Agreement, the undersigned individuals hereby warrant and represent that they have read this Agreement in its entirety and agree to all its terms. ADV ANCEPCS, L.P. BY:ADVANCEPCS,GENERALPARTNER BY~0MMa.1~ Name: avid A. George Title: President ~ 17 LI...lclientslcity-laportelagmtlk-1d [revise 2/7/2001 @ 3:10 PM] EXHIBIT A Fees and Rates RETAIL PHARMACY NETWORK RATES: Brand: A WP minus 13% plus $2.25 dispensing fee Generic: MAC plus $2.25 dispensing fee Administrative Fee: $0.95 per electronic claim processed $1.25 per manual claim processed MAIL SERVICES PHARMACY RATES: Brand: A WP minus 17% plus $1.95 dispensing fee Generic: MAC plus $1.95 dispensing fee Administrative Fee: $0.00 CLINICAL SERVICES FEE: Rebate split: 50% to Client; 50% to AdvancePCS FORMULARY SERVICES FEE: AdvancePCS shall be responsible for the costs and expenses to reprint the Formulary in accordance with Section 3(b)(i) of this Agreement; provided such costs and expenses do not exceed $0.01 per member per year on an annualized basis in each twelve month period. If the costs and expenses exceed such amount, and it is determined by AdvancePCS to be unreasonable or excessive, Client shall pay for the printing costs and expenses of the Formulary at a rate to be mutually agreed to by the parties in writing. DISTRIBUTION EXPENSES: Billed to Client at AdvancePCS' costs and expenses, including postage and special handling fees, if any. SHIPPING: AdvancePCS will be responsible for the shipping and handling of prescriptions from the mail service that may be sent via U. S. mail or other standard cornmon carrier. Client will pay for any special handling required for Prescriptions from the mail service (such as dry ice packing, expedited shipping or special packing). * Themail service for the following drugs and drug classes is A WP minus 13 % plus $4.00 dispensing fees: (i) Class II drugs, (ii) AIDS and AIDS wasting medications, (iii) growth hormones, (iv) biotech drugs for the treatment of multiple sclerosis, hemophilia or impotency, (v) orphan drugs, (vi) organ transplant agents, (vii) Imitrex, DDA VP and Miacalcin, (viii) other compounded or genetically engineered drugs or (ix) injectables or drugs requiring innovative delivery systems (e.g. patches, etc.). 18 LI...lclientslcity-laportelagmtlk-1d [revise 2/7/2001 @ 3:10 PM) The Welch Company Employee Benefits Consulting and Brokerage Memorial City Plaza 820 Gessner, Suite 1470 Houston, Texas 77024 (713) 827-8755 Fax (713) 461-5788 October 30, 2000 To: Louis Rigby, City of LaPorte From: Neal W. Welch Subject: Rx Program Comparison As requested I am enclosing a comparison of your present pharmacy program (Express Scripts) versus Advance PCS and Claims Pro. Per our recent telephone conversation I would recommend Advance PCS since our greatest concern rests with service related issues. In comparing hard dollar costs to the self-funded medical plan, Advance PCS will: 1. Lower ingredient cost by 1 % on retail brand drugs. 2. Lower ingredient cost by 2% of mail order brand drugs. 3. Increase dispensing fee by $.45 on mail order drugs. 4. Provide 50% share of manufactures rebate to the City. 5. Provide 10 cards for $.30 plus postage per individual vs. $1.00 plus postage per address. By far the largest consideration in the financial comparison is the 50% manufacturers rebate. This money will come directly to the City on all qualified retail and mail prescriptions and should equal $.30 to $.50 per script. This rebate plus the ingredient cost differences should generate net savings equal to $5000 per year for the plan. Keep in mind that our primary concern is service to plan participants, and the Advance PCS program, as the nations largest independent pharmacy benefit management firm, should improve service to the City's plan as well as solidify provider contracts. I look forward to discussing this program with you at the Council Meeting on November 13th. Enclosure The Welch Comnanv Employee Benefits Consulting & Brokerage 820 Gessner, Suite 1470 Houston, Texas 77024 713/827-8755 welchco@msn.com MEMORANDUM TO: Louis Rigby . ~ Diana L. Romagnorg) ~ Pharmacy Benefit Management Proposal Comparisons FROM: RE: DATE: October 10, 2000 As you know we received three (3) proposals last week on the RFP for Pharmacy Beneftt Management Services. Attached is a spreadsheet that outlines the respective proposals. The following are a few notes on each of the proposals and supporting documents for your consideration. Express Scripts .:. Current vendor-- no surprises, same as current arrangement .:. No rebates distributed. .:. No other clients in the La Porte area or with TML indicated in the RFP. .:. Network of pharmacies is adequate. AdvancePCS .:. Good, solid proposal .:. Rebates of 50% which translates to $.30 or $.50 per script deposited in your health plan account which would cover up to 30%to 50% of the administration fee. .:. 10 cards cost $.30 per card, other standard items included in administration fee. .:. References: Mesquite ISO, Lubbock ISO and Southern Methodist University. .:. Network of pharmacies is adequate. ClaimsPro .:. Good, solid proposal .:. Rebates of 50% which translates to $.30 or $.50 per script deposited in your health plan account which would cover up to 30% to 50% of the administration fee. .:. Administration fee includes ID cards and standard reports. .:. References: City of Athens, Ohio, City of River Rouge, Michigan, City ofMt. Pleasant, Michigan. .:. MAC and A WP- 20% (about the same) .:. Network of pharmacies is adequate. Claims Pro and AdvancePCS have excellent records of providing customer service that is the issue with Express Scripts. Please give us a call when you have had a chance to review this comparison. We would like to discuss your thoughts on potential changes to the plan. Attachments c o In .C as Co E o o - :E m ~e:. 0....- ft c 0 ... 0) 0 cu E N -JO)~ 'I- C) ca Oas:J c c ~ as ~ .- :E 0= 0) c 0) m ~ (.) as E '- as .c 0.. 1- cfl e ~ 0 ~ 0 I.() "'C "'C 0.. 0 ,...... I <D <D ('I) C,) I.() 0 0 a.. 0 <D ~ In ~ ~ ~ 0 c: 0 "'C "'C I <( C\I I.() 0 I 0 :J :J E a.. a.. 0 13 13 :2 C\I C\I ~ I~ C\I c: I.() .- ~ EI7 EI7 EI7 ~ EI7 c: c: as - C,) 0 <( :2 en + 0 ~ ~ "'C -fi ~ 0.. 0 0 0) ('I) C,) I.() I.() I.() ,...... C,) I.() <D ~ <D ~ C\I C\I 0> ~ 0> c: 0 "'C a1 a1 (.) I <( I <( 0 0 :J <D- C a.. :2 C\I C\I c:j a.. :2 ~ I.() 13 U) ~ c: ~ g as ~ EI7 EI7 EI7 EI7 c: > "'0 EI7 <( J!J 10' 1- + cfl U) :e ~ U) c: <D U) C\I 0 '- ~ ~ ,. a1 .- <D U) (.) - 0 ~ 0 c:- "'C ~ ~ c C\I I I.() I.() a.. ~.2 g <D en a.. . I.() I.() 0 <D "'C "'C a1 CD ~ 0> ~ ~ c: t: I ~ C\I C\I I I.() "'C 1) .u) :J "'C - In a.. 0 a.. 0 0 a1 U) ~ C\I C\I I~ ~ c: ~:JC: In :J ~ EI7 EI7 EI7 ~ EI7 c: o g 0) 0 o "'C Q) ~ C,) C,) .~ ~ ~ 0 <( <( :0 ~ >< :2 :2 W IZ Z 15. :Q. '- 'C E 0 0 - z .gC U) Z' a1 U) U) L. .9: Q 0 L. :9 t:: 0 IE L. - C,) .~ L. E - 0 0 U) 0 0).- U) U) L. 1) I";;:;;; U) :Sc.. ~ - 0 a.. - 0 U) C,) <D L. U) C,) :J <D L. ""'" .C 18 0 Q) -~ g 0 "'C <D -~ 0(.) C,) g LL C,) g 0 LL a: g - L. g L. g - 0) In L. g <I> 0 L. a.. Q) eO) 19 0 <D 0 .?: <D CI) L. L. L. 'u) '*- Q) caO 0 0 U) 0 LL <D 0 0 a; LL ~ U) ~ 'C c: 'C "E 'C c: c: CI) ~ U) "'C 0 "'C c: "'C ~ Jg <:: <D ~ 'm <D <D '0 'E t L. :::: c: c: c: E 0 c: c: -~ cu 't:: ~ 8 a1 a1 ...... a1 .~ Q) C,) Jg L. <D U) <D <D ~ L. <D "'C .Q cu :S Q) aJ (!) C a:: (!) 'm aJ (!) (J) 0 <( Q) ..c:: <D 0 0:: :2 0:: CI) 0 a:: a o U -= CJ - ~ ~ ~ -= ~ City of LaPorte RFP Distribution __f._j_Bifi... ....d____ .._..._..... ,.... ...t:t..Oite\ .......-....................... ......... -. -.................. . - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . {R~G~iVii!dt. Pharmacy Express Scripts 8350 Sterling Street Irving, Texas 75063 Jon Warren 972/621-1070 972/621-8148 (Fax) 9/8/00 .99 10/6/00 BeneScript Services, Inc. 7134 Hunnicut Circle Dallas, Texas 75227-2924 Jim Champion 214-275-6425 214-275-5782 fax 9/8/00 .99 No response Advance Paradigm, Inc. 545 E. John Carpenter Frwy, #1570 Irving, Texas 75062 Marla Kilday 800n 49-6199 972/830-6168 (Fax) 9/8/00 .99 10/6/00 Claims Pro P.O. Box 578 Frisco, Texas 75034-0578 Eric Singer 972-335-7723 972-335-6817 fax 9/8/00 .99 10/4/00 The Welch COmpany ----------- REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 13, 2000 Appropriation Requested By: Rohert T. Herrera Source of Funds: Golf Course Department: 0\ II m i oj it rll ti(up Account Number: 02860485518032 Report: Resolution: Ordinance: Amount Budgeted: 0 Exhibits: Amount Requested: $" ,f;Q"i Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION It was determined in early October that damage at Bay Forest Golf Course was being caused by feral hogs. Staff discussed several options and it was decided that the best course of action was to erect a chain link fence around the perimeter of the golf course in the areas where it was believed the hogs were entering the property. The fence was to be six feet in height, matching the existing fence. The Local Government Code precludes the need for a sealed bid when the expenditure is for "a procurement necessary because of unforeseen damage to public machinery, equipment, or other property". Specifications were developed, a pre-bid meeting was held, and written quotes were received from four vendors: Astro Fence Dow Fence Foster Fence Aries Fence $22,695 $23,147 $23,396 $24,408 A purchase order was issued to Astro Fence and work began on October 11. There was no money budgeted in line item 8032 - Land Improvements, in the golf course budget. However, there were sufficient funds in other golf course line items to transfer to the proper account. No contingency funds are necessary to complete this project. With this installation, the golf course will be completely fenced with the exception of approximately 1,800 feet between the entrance and Wharton Weems Boulevard. Action Required bv Council: Ratify the decision of the City Manager to purchase and install 3,643 feet of six foot chain link fence to Astro Fence in the amount of $22,695, to protect property at Bay Forest Golf Course Approved for City Council A2enda cx~ <[. l~~ Robert T. Herrera, City Manager \ ~.. ..,...()o Date Agenda Date Requested: November 13, 2000 Appropriation Cops More 98 Grant Requested By: Ril'hard E. Rf'ff Source of Funds: Department: Polic~ Account Number: 001-5253-521-8023 Report: X Resolution: Ordinance: Amount Budgeted: 193rOOO.00 Exhibits: Motorola Contract Amount Requested: Budgeted Item: ~ lQ? Ill/;; Rl , Exhibits: NO Exhibits: SUMMARY & RECOMMENDATION The City of La Porte was awarded the Cops More 98 Grant on 9/1/99. The award was for $144,750.00 for equipment /technology. The match for this grant was $48,250.00 which makes the total amount of the grant $193,000.00. Both the grant and match were budgeted in 1999- 2000 budget. The amount will be rolled forward to the current budget year. These funds will be used to purchase twelve laptop computers, mounts, hardware and software to be installed in patrol units. The mounts will be installed in 35 patrol units so that the laptops can be moved from vehicle to vehicle. After reviewing the two available transmission mediums (cellular and radio) it was determined that utilizing the radio medium was presently the best choice. Motorola has submitted a total package including hardware and software. We will be using a radio medium through the Pasadena Police Department's 800 MHz radio system. Motorola's proposal utilizes HGAC and HUB state contracts as sources for the software and hardware and will be the single point of contact for maintenance. This system, referred to as RDLAP will allow officers to ron registrations, input offense reports and have communication ability with Deer Park and Pasadena's Police Departments from their patrol cars. It is projected that the laptop system will be operational 110 days after signing the contract with Motorola (March 1,2001). The Police Department is requesting your permission to expend the Cops More 98 Grant funds in the amount of 192,016.81. The summary of the total purchase will be: Panasonic Note Book (12) and Mounts (35) SCA Software and Server Installation Cost Motorola Services(System Engineer) HGAC Administrative Fee 116,317.46 62,000.00 4,150.00 5,000.00 4,549.35 Total Purchase Price 192,016.81 Action Reauired bv Council: Consider authorizing the expenditure request from the funds awarded by the Department Of Justice COPS More 98 Grant, for a laptop computer system to be installed in the Patrol units. Approved for City Council A2enda G~\..~ Robert T. Herrera, City Manager \\. L.-0U Date CITY OF LA PORTE INTEROFFICE MEMORANDUM October 9, 2000 TO: Mayor and City Council FROM: Robert T. Herrera, City Manager CXT~ Re-I>istricting SUBJECT: Enclosed is a copy of a memo written by Mayor Malone on October 3, 2000, on the above subject. This board will be given a most important task to perform on behalf of the City. I would like to place this matter on the November 13 Council agenda for discussion and to receive a report from the City attorney on policy and procedures recommended for this board. Cc: Knox Askins John Joerns v'" Martha Gillett Attachment AI', (.~,\ If 1 ""'\ CITY OF LA PORTE October 3, 2000 TO: City Councilmembers Norman L. Malone, Mayor yY\). ~ Citizen Redistricting Committee FROM: SUBJECT: Following the 1980 and 1990 federal censuses, the City Council appointed a citizens committee to study this matter, hold public meetings, receive public input, and recommend to City Council a plan for re-districting, again, dividing the City into six districts which are "reasonably compact, contiguous and of as nearly equal population as practicable" . Ms. Gillett informed me we hope to be receiving census results by December 2000. I would like us to start thinking about members we would like to serve on the committee. We need each council member to contact and confirm one person. Knox Askins suggested Council work together on appointments due to the need to reflect racial, ethnic and gender diversity. Please let Ms. Gillett know whom you recommend serve on the committee by October 15, 2000. c: Robert T. Herrera John Joerns Knox Askins ASKINS & ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. F'AIRMONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS ~OHN D. ARMSTRONG TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 CHARLES R. HUBER. ~R. BOARD CERTlF'lEO - CIVIL TRIAL LAW TEXAS BOARD Of" LEGAL SPECIALIZATION CLARK T. ASKINS October 24, 2000 Honorable M or and City ouncil City La Porte cit Hall L Porte, Texas Re: City Council Re-Districting/Census 2000 Gentlemen: I have received a copy of Mayor Malone's memo of October 3, 2000, to City Council on this matter, as well as Mr. Herrera's October 9, 2000, memo to Council, indicating that he will place this matter on the November 13th Council agenda for discussion and to receive a report from the City Attorney on policies and procedures recommended for the citizens committee. For background reference, I include a copy of my opinion letter of June 13, 2000. I also enclose a copy of Ordinance No. 1738, which appointed the citizens committee following the 1990 federal census. I understand that a City Councilperson has suggested that he would like to nominate himself for the citizens committee. In my opinion, the citizens committee should be a citizens committee, and should not include any member of City Council. Due to the large population growth on the west side of the City, it is possible that the re-districting process will substantially alter the present configuration of Council districts, even to the possible extent of requiring the consolidation of some districts as they are now configured. It seems to me that it is best to keep the committee solely a citizens committee, to eliminate any conflict of interest on the part of a City Councilperson in the committee discussions and decisions. I will be available at the Council meeting of November 13th to answer your questions. KWA: sw Enclosures cc: Mr. Robert vMS. Martha T. Herrera A. Gillett ASKINS & ARMSTRONG. P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS ..JOHN O. ARMSTRONG CHARLES R. HUBER. ..JR. BOARD CERl'I"'E:O ~ CIVIL TRIAL LAW TExAS BOARD Of' LEGAL SPECIALIZATION CLARK T. ASKINS TELEPHONE 281 471-1886 TELECOPIER 281 471-2047 June 13, 2000 Mr. Robert T. Herrera City Manager City of La Porte city Hall La Porte, Texas .. W Re: city Council Re-Districting/Census 2000 Dear Mr. Herrera: You have asked me to furnish you a letter on the procedure to be followed for city council re-districting following the federal census which was conducted in April, 2000, and, also on the question of possibly reducing the number of polling places. six City councilpersons are elected from single member districts. Article 2.01 (b), "Formation of Districts", of the Home Rule Charter of the city of La Porte, provides that City council shall divide the city into six districts which are reasonably compact, contiguous and of as nearly equal population as practicable. Immediately fOllowing the publication of the 2000 federal census, which I would anticipate will occur sometime during the year 2001, City council is required to conduct an investigation and determine the population of the city and the population of each of the districts from which district Councilpersons are to be elected. Such determination shall be based upon the best available data, including, but not limited to, the most recent federal census. Council then passes an ordinance, which makes a final determination of the population. After such determination by City Council, if the distribution of population among the various districts is determined by City Council to be materially unbalanced, the city Council shall establish new boundaries for the election of district council- persons. Following the 1980 and 1990 federal censuses, the city council made its determination, and then appointed a citizens committee to study the matter, hold public meetings, receive public input, and recommend to city council a plan for re-districting, again, dividing the city into six districts which are "reasonably compact, contiguous and of as nearly equal population as practicable". ASKINS & ARMSTRONG. P. C. ATTORNEYS AT LAW Robert T. Herrera June 13, 2000 Page 2 Thereafter, the City Council holds a pUblic hearing on the proposed plan, and, when adopted by city Council, the new plan must be filed with the Voting Rights Division of the U.S. Department of Justice, for preclearance under the Voting Rights Act of 1964, as amended. A full brief must be filed with the Justice Department, reflecting the census; the population determination; the findings of the City's citizens committee, together with the evidence upon which the findings were based; and evidence of the opportunities which were given for citizen participation in the proceedings. Based on past experience, this is a complex procedure, and hopefully can be put in place in time for the 2002 election of City Councilpersons. You have asked the related question of the possibility of reducing the number of pOlling places. Presently, a district polling place is open on election day and runoff election day, if necessary, in each of the respective districts. Absentee voting for all elections is conducted at city Hall. Due to historic low voter turnout at some of the districts, and the difficulty in obtaining the election judges and clerks required by state law at each polling place, the question has been raised as to whether the number of polling places might be reduced. I would suggest that this proposition be presented to the City's citizens committee for its consideration, and made a part of its deliberations and recommendations to City Council. Should the recommendation be made that districts be consolidated for election purposes, the City would have to make a showing to the Justice Department that such consolidation will not unduly impede or inconvenience the ability of voters to exercise' their right to vote. Please let me know if I can be of further assistance. Y~ve~y truly, ~tJj;/,~ Knox W. Askins City Attorney City of La Porte KWA: sw ORDINANCE NO. 1738 AN ORDINANCE APPOINTING A RE-DISTRICTING COMMITTEE, AND ESTABLISHING ITS POWERS AND DUTIES; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council of the City of La Porte hereby appoints the following residents of the City of La Porte to a Re-Districting Committee, to-wit: Chairperson: District 1: District 2: District 3: District 4: District 5: District 6: Position A: Position B: Alternate 1: Alternate 2: Section 2. Harold Pfeiffer Betty t'1a~s -Russe..ll-Yhal: r a -llmmilL~~~lin~ Robert-D.aniels Robe r t Swall.a.CJ..an Bob Capen -E-au.L.Eel<;Jner -BLenda Villareal the Re-Districting Committee shall conduct an investigation and Following publication of the 1990 Federal Census, determine the population of the City, and the population of each of the districts from which district Councilpersons are elected. Each such determination shall be based upon the best available data, including, but not limited to, the 1990 Federal Census. Each such determination shall be reported by the Re-Districting Committee to City Council, which shall express the results of such determination in an ordinance, which shall be a final determination for purposes of the Horne Rule Charter of the City of La Porte. After any such determination, if the distribution of population among the various districts is determined by City Council to be materially unbalanced, the Re-Districting Committee shall, following public notice and an opportunity for public input, recommend to City Council the establishment of new boundaries for the election of district Councilpersons. Section 3. recites and declares that a sufficient written notice of the date, The City Council officially finds, ~etermines, 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, Article 6252-17, Texas Revised Civil Statutes Annotated; and that this meeting has been open to the public as required by law at all times during which this ordinance ORDINANCE NO. 1738 PAGE 2 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 4. This Ordinance shall be effective from and after its passage and approval. PASSED AND APPROVED, this the 14th day of January, 1991. ATTEST: Cherie Black City Secretary AP6Zi~d-; Knox W. Askins City Attorney , ., \ CITY OF LA PORTE PUBLIC WORKS DEPARTMENT Memo To: Robert T. Herrera, City Manager From:Steve Gillett, Director of Public Works CC: John Joerns, Assistant City Manager Date: 11/6/2000 Re: Traffic Hump Requests As of November 1, 2000, two (2) applications have been submitted for traffic humps. Applications have been received for the following streets. 1. Choctaw - from Choctaw/Can iff to Choctaw/Sioux 2. Stonemont - from Underwood to Quiet Hill A public meeting has been scheduled for Tuesday, November 14, 2000 at 6:30 PM in Council Chambers to explain the process and answer questions. Door hangers announcing the meeting will be placed on affected residences one week prior to the meeting. If you have any questions, please give me a call. . Page 1