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Page 2 -Minutes 11-13-00 Council Meeting
Spero Pomonis 218 Bay Colony Drive -addressed Council and expressed his opposition
to Franchise Fees.
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;
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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
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Date
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REQUEST FOR CITY COU
IL AGENDA ITEM
Agenda Date Requested: November 13
Requested By: C nthia B. 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
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~ "
",
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
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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
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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
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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,
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OCT-13-2000 FRI 01:04 PM
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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
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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
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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
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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
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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
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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
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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::'
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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.'
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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 ....
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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.,
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KEVIN A. OLSON
TEXAS REGISTERED PUBLIC SURVEYOR NO: 4524
DATE:' NOVF:r1BER 1 t\. 1988
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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
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"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
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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-~ ~; ~
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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
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232000 II/J
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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
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the
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. be
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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
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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
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L.AND D~~T~-\ SUR\rEYS, liNC.
DON DENSON
Registered Professional land Surveyor
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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.
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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
{
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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
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/ J Vy.c....J f10m V'lj;A.JeE>',
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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
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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
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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.
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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.
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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
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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.
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(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,
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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
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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.
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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.
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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
~
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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.
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City of LaPorte
RFP Distribution
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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