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HomeMy WebLinkAbout2001-10-22 Regular Meeting and Public Hearings e e . . . e e MINUTES OF THE REGULAR MEETING AND PUBLIC HEARINGS OF LA PORTE CITY COUNCIL OCTOBER 22, 2001 1. CALL TO ORDER The meeting was called to order by Mayor Norman Malone at 6:00 p.m. Members of City Council Present: Councilpersons Guy Sutherland, Chuck Engelken, Howard Ebow, Peter Griffiths, Alton Porter, James Warren, Charlie Young, Jerry Clarke, and Norman Malone. Members of Council Absent: None Members of City Executive Staff and City Employees Present: City Manager Robert T. Herrera, City Attorney Knox Askins, Assistant City Manager John Joerns, City Secretary Martha Gillett, Assistant Finance Director Mike Dolby, Director of Administrative Services Carol Buttler, Parks and Recreation Director Stephen Barr, Public Works Director Steve Gillett, Purchasing Manager Susan Kelley, Planning Director Doug Kneupper, Assistant Police Chief Aaron Corrales, Planning Coordinator Masood Malik, and Police Officers Lance Cook, David Huckabee and Jerome McKown. Others Present: Bill Scott, Bill White, Roy Myers, Dan Dompier, Joeena Davis, Dave Turnquist, George Marek, Nickol Conklin and a number of citizens. 2. Reverend Ron Burnett of Victory Tabernacle delivered the invocation. 3. Council considered approving the minutes of the Regular Meeting on October 8, 2001. Motion was made by Councilperson Engelken to approve the minutes of the Regular Meeting on October 8. 2001 as presented. Second by Councilperson Sutherland. The motion carried. Ayes: Sutherland, Engelken, Ebow, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: Griffiths 4. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND T AXP AYERS WISHING TO ADDRESS COUNCIL The following citizens addressed City Council. Dave Turnquist - 8503 Ashwyne Lane, La Porte, Texas 77571, addressed Council concerning ideas suggested by his students, regarding issues in La Porte, to provide a forum of young people within our town to discuss and share ideas to help make La Porte a better place. Mr. Turnquist presented handouts for Council. e e City Council Minutes 10-22-01 - Page 2 Paul Larson - 406 4th Street, La Porte, Texas 77571, provided Council with a handout. He informed Council that Habitat for Humanity is a good program, and informed Council that he would like to purchase lots where proposed homes are to be built. He feels that he was not given due process in bidding with the City of La Porte on these lots. Mr. Larson requested that Item Number 15 on Agenda, regarding Habitat for Humanity, be put on hold until all the information is processed. Bill Scott of 1802 Lomax School Road, La Porte, Texas 77571, presented the attorney salary differentials of Deer Park and La Porte. Mr. Scott noted Deer Park is one-third less than La Porte. After his last presentation, he has not received answers to his requests . Mr. Scott provided Council with his phone number so they would be able to contact him. He went on to present differentials of La Porte and other cities across the country. Again, he asked the Council to respond to his query. He did receive a response from his Councilperson, and noted they are in agreement. Nazar Momin of904 W. Barbours Cut Boulevard, La Porte, Texas 77571, is hosting a luncheon for the firefighters and police officers the first or second week in November at the Port Cafe. The details are to be worked out with the Police Chief and Fire Chief. 5. PROCLAMA nONS Mayor presented Joeena Davis with the "Bulldog Week" Proclamation. Two of La Porte's football players presented Mayor with shirts. Mayor presented students, Chase Cickorz, Jahmel Lewis, and Trey Armstrong with the "White Cane Safety Day" Proclamation. Attending with the students was Instructor, Jodie Kramer, and Teacher, Colleen Davis. 6. PRESENT A nONS Bill White presented David Huckabee with the Police Officer of the Year Award. Senator Mike Jackson presented a Proclamation from the Texas Senate. 7. Open Public Hearing - Mayor Malone opened the Public Hearing at 6:40 PM. Review by Staff - Doug Kneupper presented summary and recommendation of Planning and Zoning Commission regarding rezoning request from Neighborhood Commercial (NC) to Planned Unit Development (PUD) to provide the appropriate zoning to develop an office park. Real Estate Broker Dan Dompier of ReMax, answered Council's questions regarding the office park development. Recommendation of Staff - Mr. Kneupper recommended the city change zoning to de~elop office park. Mayor Malone closed the Public Hearing at 7:06 PM. e e City Council Minutes 10-22-01 - Page 3 8. Council considered approving an ordinance amending the Code of Ordinances of the City of La Porte, Chapter 106, more commonly referred to as the Zoning Ordinance of the City of La Porte, by changing the zoning classification of a certain parcel of land (Oid.1501-SS). Planning Director Doug Kneupper presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 1501-SS - AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, CHAPTER 106, MORE COMMONLY REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTE, BY CHANGING THE ZONING CLASSIFICATION OF THAT CERTAIN PARCEL OF LAND HEREIN DESCRIBED; MAKING CERTAIN FINDINGS OF FACT RELATED TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made bv Councilperson Engelken to approve Ordinance 1501-SS as presented by Mr. Kneupper. Second by Councilperson Griffiths. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: None 9. Open Public Hearing - Mayor opened the Public Hearing at 7:06 PM. Review by Staff - City Secretary Martha Gillett presented summary and recommendation regarding an ordinance approving a variance for a wine and beer permit. Public Input - There was no public input. Recommendation of Staff - Ms. Gillett recommended the approval of the ordinance. Mayor closed the Public Hearing at 7:12 PM. 10. Council considered approving an ordinance authorizing a variance for a wine and beer permit (Ord.l000-l-J). City Secretary Martha Gillett presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 1000-I-J - AN ORDINANCE OF THE CITY OF LA PORTE, TEXAS, GRANTING A VARIANCE TO CHAPTER 6, SECTIONS 6.2 AND 6.3 AND AMENDING CHAPTER 6, SECTION 6-78 OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, BY PERMITTING THE SALE AND CONSUMPTION OF BEER AND/OR WINE AT A RESTAURANT LOCATION SITUATED WITHIN 300 FEET OF A PUBLIC SCHOOL AND SITUATED ON CITY- OWNED PROPERTY AND BY ADDING AN AREA AT A RESTAURANT LOCATION SITUATED WITHIN 300 FEET OF A PUBLIC SCHOOL AND SITUATED ON CITY-OWNED PROPERTY AND BY ADDING AN AREA AT A e e City Council Minutes 10-22-01- Page 4 RESTAURANT WHERE WINE AND/OR BEER FOR CONSUMPTION ON THE PREMISES MAY BE SOLD; FURTHER PROVIDING A SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. Motion was made by Councilperson Clarke to approve Ordinances 1 OOO-l-J as presented by Ms Gillett. Second by Council person Engelken. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: None 11. Council considered approving an ordinance regarding a resolution committing to participate with H-GAC Energy Purchasing Corporation (Res.200l-l4). City Manager Robert Herrera presented summary and recommendation and answered Council's questions. Following is partial transcription from the recording of the Council Meeting: City Manager Robert Hererra thanked the Mayor and Council. As you may recall, May 8, the Council authorized the City of La Porte to participate and join the H-GAC Energy Purchasing Corporation by adopting a resolution. That resolution allowed the City of La Porte, along with other cities to visit with H-GAC to pool our resources and pool our aggregate needs for electrical power so that they could go out and negotiate through a bid process, eventually with a customer to provide electrical services to everyone who joins this particular setting. H-GAC, in my opinion, has done a tremendous job in taking care of the needs of the cities by providing us with this service. They did hire the attorneys, they did hire the engineers and the architects to help put this together where it would make sense for municipalities like the City of La Porte. At this point and time, the initial apprizing purpose that we believe may come about will fall between 5 cents and 6 cents per kilowatt hour. Ifwe were to compare that to what we are currently paying without the ability to pool together, we are looking at a cost of 8 cents to 9 cents. What that equates to for the City of La Porte, if the pricing stays as we think it might, a savings of about $213,000 on a yearly basis. These fees would include the energy costs, the fuel costs, transmission distribution and other regulated rates, including a ~ cent kilowatt charge from H-GAC. There is a schedule of which we have laid out in your agenda packet that outlines key dates when things have to happen. The first deadline for us is to look at adopting Resolution Number II, which is in back of the agenda packets that I am reading from. WHat Resolution Number II basically says is that we are committed to move forward and go ahead and use the numbers that we provided H-GAC for the pooling project to go ahead and go for a bid on it. Once the numbers come back to H-GAC, there is a deadline that we need to act on. The numbers must come back to H-GAC by the 12th from the representative. This is the company that would actually do the actual service for the electricity rates. They will take those numbers and they will share them with the City of e e City Council Minutes 10-22-01 - Page 5 La Porte; but Resolution Number II says if the numbers are as they are estimated to be within 20 to 25 percent lower than what we are currently purchasing, then the City will move forward and enter into a contract. In talking with one of the H- GAC board members today, it's my understanding there may even be a greater percentage break for La Porte and other cities that participate. So, the Resolution that you are asked to consider will allow the City to go ahead and purchase when the time comes, the rates as they have been established through the bid process through H-GACj if and only if the numbers are lower than what I quoted tonight or are equal to what I quoted tonight. If you are inclined to do so, then you are also asked by this Resolution to appoint two officers from the City to sit down and to negotiate the final numbers with H-GAC. I would recommend that we move forward, and that those two people be myself and our Purchasing Agent. Susan Kelley has been working on this particular project almost since its inceptionj and she has done a tremendous job, by the way. I'm very proud of her efforts to date. We do recommend that Resolution Number II be approved and accepted by the City Council. We are ready to answer any questions we possibly can. Alton Porter's question waSj if after this is done, can we withdraw our commitment to fixed rate, if final pricing exceeds the initial proposed pricing. Is that the only opt out we have? If service is poor, do we have an opt out? Mr. Herrera responded that their is a supplemental agreement in the packet that does talk of a termination clause. In order to get in to it, first of all; the first clause is not service, but the price. If the price is not acceptable, then you can back out. The contract that we will probably negotiate will either be for one year or for two years. At this point and time, a firm of TXU has been recognized as the apparent low bidder, or the most responsible bidder. There is a term clause in the sample agreement that talks about (Termination of Agreement). We would probably have to go through breech of contract, and explain where the breech was at and why we are dissatisfied. There were various members discussing the contract agreement. City Attorney read: RESOLUTION 2001-14 - A RESOLUTION APPROVING AND AUTHROIZING EXECUTION OF A "SUPPLY AGREEMENT" WITH A RETAIL ELECTRIC PROVIDER, APPROVING INITIAL PROPOSAL PRICING, AND APPOINTING AUTHORIZED REPRESENT A TIVE(S). Motion was made by Councilperson Sutherland to approve Resolution 2001-14 as presented by Mr. Herrera. Second by Councilperson Griffiths. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Warren, Young, Clarke, and Malone. Nays: Porter Abstain: None e e City Council Minutes 10-22-01 - Page 6 12. Council considered approving or other action regarding an ordinance electing to not provide five-year vesting for employees of the City of La Porte who are members of the Texas Municipal Retirement System, reserving the right to revoke this election (Ord.2001-2522). Director of Administrative Services Carol Buttler presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2001-2522 - AN ORDINANCE ELECTING TO NOT PROVIDE FIVE-YEAR VESTING FOR EMPLOYEES OF THE CITY OF LA PORTE WHO ARE MEMBERS OF THE TEXAS MUNICIPAL RETIREMENT SYSTEM; RESERVING THE RIGHT TO REVOKE THIS ELECTION; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Clarke to approve Ordinance 2001-2522 as presented by Ms. Buttler. Second by Councilperson Sutherland. The motion carried. Ay~s: Sutherland, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: None 13. Council considered approval or other action regarding an ordinance approving and authorizing an amendment to the tax abatement agreement between the City of La Porte and PPG Industries, Inc. (Ord.2001-2523). City Manager Robert Herrera presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2001-2523 - AN ORDINANCE APPROVING AND AUTHORIZING AN AMENDMENT TO THE TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF LA PORTE AND PPG INDUSTRIES, INC.; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made bv Councilperson Ebow to approve Ordinance 2001-2523 as presented by Mr. Herrera. Second by Councilperson Engelken. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: None e e City Council Minutes 10-22-01 - Page 7 14. Council considered or other action regarding an ordinance approving and authorizing a contract between the City of La Porte and Hugh L. Landrum & Associates, Inc., for appraisal and other services for properties located in the city's industrial districts; appropriating $46,170 annually to fund said contract for calendar years 2002, 2003 and 2004 and each year thereafter until said contract is terminated as provided for therein (Ord.2001-2524). Assistant Finance Director Michael Dolby presented summary and recommendation and answered Council's questions. City Attorney read: ORDINANCE 2001-2524 - AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND HUGH L. LANDRUM & ASSOCIATES, INC., FOR APPRAISAL AND OTHER SERVICES FOR PROPERTIES LOCATED IN THE CITY'S INDUSTRIAL DISTRICTS; APPROPRIATING $46, 170 ANNUALLY TO FUND SAID CONTRACT FOR CALENDAR YEARS 2002, 2003, AND 2004 AND EACH YEAR THEREAFTER UNTIL SAID CONTRACT IS TERMINATED AS PROVIDED FOR THEREIN; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilperson Clarke to approve Ordinance 2001-2524 as presented by Mr. Dolby. Second by Councilperson Engelken. The motion carried. Ay~s: Sutherland, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: None 15. Receive report on Habitat for Humanity proposed building sites and provide staff with direction. Council would like to have an audit conducted, and a formal disposition made. 16. Consider awarding bid to A-Tex Equipment and Wowco Equipment for heavy equipment. Public Works Director Steve Gillett presented summary and recommendation to award bid for Heavy Equipment to A-Tex Equipment and Wowco Equipment. Motion was made by Councilperson Engelken to award bid as presented bv Mr. Gillett. Second by Councilperson Clarke. The motion carried. Ayes: Sutherland, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone. Nays: None Abstain: None e e City Council Minutes 10-22-01 - Page 8 17. City Manager Robert Herrera reminded Council of the following events: The Chamber of Commerce Steak Cook-out on Thursday, October 25, at 6 PM at the DuPont Clubhouse. The Redistricting Meeting on Monday, October 29, at 6:30 PM at City Hall. 18. Council members Porter, Griffiths, Ebow, Engelken, Sutherland, Clarke, Young, Warren and Mayor Malone brought items to Council's attention. 19. 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) 20. There was no action taken. 21. ADJOURNMENT There being no further business to come before Council, the Regular Meeting was duly adjourned at 8: 17 PM. Respectfully submitted, LffIalt/J~ 11aut; Martha Gillett City Secretary Passed and approved on this the 12th day of November 2001. ~~1~4 e e REQUEST FOR CITY COUNCIL AGENDA ITEM e e Agenda Date Requested: October 22. 2001 Requested By: Doue Kneuppe;p\0 Appropriation Source of Funds: N/A Department: Plannine Account Number: N/A Report: -LResolution: _ Ordinance:~ Amount Budgeted: N/A N/A Exhibits: Ordinance Vicinity Map Mail Out Response Staff Report to P & Z Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION The Planning and Zoning Commission, during their September 20, 2001 meeting, held a public hearing to receive citizen comments regarding Rezone Request #ROI-005. The applicant is requesting this rezoning from Neighborhood Commercial (NC) to Planned Unit Development (PUD) to provide the appropriate zoning to develop an office park. The tract in question comprises 8.3 acres ofland located on the south side of Caniff Road at the northwest comer of Underwood Road and Fainnont Parkway. The developer's contemplated uses are a mixture of general and administrative office-based businesses such as accounting, engineering, etc. and include a bank fronting Fainnont Parkway. The remainder of the property will be 2-story office buildings developed in phases. During the Public Hearing conducted by the P & Z, two citizens presented concerns to the Commission regarding setbacks, screening and landscaping. If the requested zoning is approved, these concerns can be addressed by the developer, staff, P & Z, and Council during preparation of the Special Conditional Use Pennit (SCUP). Twenty-one notices of public hearing were mailed to surrounding property owners; one response (opposed) was received and is attached. The Planning and Zoning Commission, by unanimous vote, has recommended City Council approval of Rezone Request #R 01-005. Options available to Council: 1. Approve the recommendation from P & Z with a simple majority 2. Disapprove the recommendation from P &Z with a % majority 3. Table the item until a specified future meeting date Action Required by Council: 1. Conduct public hearing. 2. Consider approval of Rezone Request #R 01-005. Approved for City Council Aeenda Q~ T. "'~ Robert T. Herrera, City Manager -10-{1-Dl Date e e ORNINANCE NO. 1501-SS AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, CHAPTER 106, MORE COMMONLY REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTE, BY CHANGING THE ZONING CLASSIFICATION OF THAT CERTAIN PARCEL OF LAND HEREIN DESCRIBED; MAKING CERTAIN FINDINGS OF FACT RELATED TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DA TE 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 finds, determines and declares that heretofore, to-wit, on the 20th day of September 2001, at 6:00 p.m. a Public Hearing was held before the Planning and Zoning Commission of the City of La Porte, Texas, pursuant to due notice as required by the Open Meetings Law, Chapter 551, Texas Government Code, to consider the question and the possible reclassification of the zoning classification of the hereinafter described parcels of land. There is ------= attached to this Ordinance as Exhibit "A", a1d incorporated by reference herein and made a part hereof for all purposes, a copy of Notice of Public Hearing which the City Council of the City of La Porte hereby finds was properly mailed to all owners of all properties located within two hundred feet (200') of the properties under consideration. "Section 2. The publisher's affidavit of publication of notice of said hearing is attached hereto as Exhibit "B", incorporated by reference herein and made a part hereof for all purposes. "Section 3. Immediately following such public hearing on. September 20, 2001, the Planning and Zoning Commission of the City of La Porte met in regular session to consider changes in classification, which were the subject of such public hearing. The City Council of the City of La Porte is in receipt of the written recommendations of the City of La Porte Planning and Zoning Commission, by letter dated September 21,2001, a true copy of which letter is attached hereto as Exhibit "C", incorporated by reference herein and made a part hereof for all purposes. ORDINANCENO.15.~ Page 2 e "Section 4. Subsequent to receipt of the recommendation of the City of La Porte Planning and Zoning Commission, the City Council of the City of La Porte called a public hearing on the proposed classification changes and the recommendation of the Planning and Zoning Commission on the 220d day of October, 2001, at 6:00 p.m., and pursuant to due notice, to consider the recommendation of the Planning and Zoning Commission regarding the possible reclassification of the zoning classification of the hereinafter described parcels of land. There is attached to this Ordinance as Exhibit "0", incorporated by reference herein and made a part hereof for all purposes, a copy of the notice of public hearing. "Section 5. The publisher's affidavit of publication of notice of said hearing is attached hereto as Exhibit "E", and incorporated by reference herein and made a part hereof for all purposes. "Section 6. The City Council of the City of La Porte hereby accepts the recommendation of the City of La Porte Planning and Zoning Commission, and the zoning classification of the hereinafter described parcels of land, situated within the corporate limits of the City of La Porte, is hereby changed, and the zoning classification of said parcels of land shall hereafter be "PUO - Planned Unit Development." The description of said parcels of land rezoned to Planned Unit Development is as follows, to-wit: East half of TR 718, TR 719, and adjoining street out of La Porte Outlots, W. B. Lawrence Subdivision, La Porte, Harris County, Texas. "Section 7. The City Council of the City of La Porte hereby finds, determines, and declares that all prerequisites of law have been satisfied and hereby determines and declares that the amendments to the City of La Porte Zoning Map and Classification ORDINANCE NO. 15'SS Page 3 e contained in this Ordinance as amendments thereto are desirable and in furtherance of the goals and objectives stated in the City of La Porte's Comprehensive Plan. "Section 8. 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 9. This Ordinance shall be in effect from and after its passage and approval. Passed and approved this the ~d.tJf) day of October, 2001. :~~~ NORMAN MALONE, Mayor ATTEST: By~/JJ41"-' ,;ILI/AI AR HA GILLETT, City Secretary e e THE STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE NOTICE OF PUBLIC HEARING In accordance with the provisions of Section 106 -171 of the Code of Ordinances of the City of La Porte, and the provisions of the Texas Local Government Code, notice is hereby given that the La Porte Planning and Zoning Commission will conduct a public hearing at 6:00 P.M. on the 20th day of September, 2001, in the Council Chambers of the City Hall, 604 West Fairmont Parkway, La Porte, Texas. The purpose of this hearing is to consider rezone request #R 01-005, which has been requested for approximately 8.2628 acres of land being E. ~ of TR 718, TR 719, and adjoining street, out of La Porte Outlots, W. B. Lawrence Subdivision, Vol. 83, PG. 344, H.C.D.R. out of the William M. Jones Survey, A-482, City of La Porte, Harris County, Texas. The property in question is located along Fairmont Parkway at Underwood Road. The request, submitted by Mr. Dan Dompier, on behalf of Summer Winds, LLC., seeks to have the property in question rezoned from Neighborhood Commercial (NC) to Planned Unit Development (pUD). The purpose of the zone change is to provide for Office Building Park. A regular meeting of the Planning and Zoning Commission will follow the public hearing for the purpose of acting upon the public hearing items and to conduct other matters pertaining to the Commission. Citizens wishing to address the Commission pro or con during the Public Hearing will be required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett City Secretary EXHI81TA _ '\ l(lilic~ -con dUring (1 ;:.< to I '..!ll' ,U : Hearlm ~ . ,Yeting I sign In.l5~etol~.J"I.:.?' I is conv~ne :/,1\" ,_:", - .- \~ . i\- CITY OELA P~RTE I ,; - 'sharon Hams , ',-' ' tor.. , .; 1,' : .~, Martha A, 'Gillett -,' , . J - """ ' City Secretary_ ,". !l "~.;',:.:.' . __',~,;:~~P'_::~::'::~ 'N ~ 'iC';~s-herebY given' that, ,the La Porte' City Council,- - !',~III cond~ct a PUbl~c.hear~'i , Ing at 6.00 P .M, <,on; the ., i.22nd day of October 2001: "'in, th'e'.Council .Chambers . of the City' Hall. ,604 West .-. Fairmont . ,Parkway, La ~orte, Texas. The purpose ,~:: ~ of this,hearing is to consid.,:; :, '" .e[ ~n ~ application for ~Beer. ". Jland: Win .R~tailer'~, per-,' ,;c,'_ mil. -!i Ii Restaurant ~.,::'.haSta pe. for a vari~nce ~,<,pur a t secti, 9.33_ ::>r of' e xas, Aic olic~ ':;':'l:B_e-veragl1 p~missio Ab ::> cohol.Be r~g~Code,. he -:; ....\iariarice' -V permit th~ < sale. of b ef and .win~' at. I', ;Rixter's Restaura. nt .Iocat- / ed at 10615 -1/2 West Main , on City -of La Porte Munici-" 'pal Airport ,property. The ~)ocation' sought_ to 013 per: mitted is within prOhibited: " .distance . 'outlined in the ~:Texas Aicoholic, ~everage :,Porj1rniss!on -f A,I~ohol:, Bevo;" erage.C<;>de ana the Code ' B;gf 'Ordinances of the. City . 'of Lit" Porte: .The: City; . Council may grant appro- ~~~al: pe~ 'Sect!on '; 1,09133 of, the 'Texas" Alcoholic' Bever-' age Commission Alcohol ;Beverage C;ode. A regular' meeting of ,the 1( L:a" Porte' City "Council- will ' " iollow' 'the: public hearing] "\,for :the purpose' of acting_ \? upon. the:" pubUc -,t't~aring J ite!T!s'and to conduct other' matters' pertaining to the_ ._.CqiJn!=i1, __: ,~_ "._ l":.:..~~ .:'.'-;'_,'-L~"'.,- ;',' _::~~ ':>", ~. ~ .. . :.,;:....... r;;' r Citiz~~s" wlshii;g to- 'ad-' \ dress the Council pr.o or L...., . 'I, ;,:;~ ' . e e c EXHIBIT A & B 820 South 8th Street La Porte, Texas 77571 E:;'Ii..._. " 'i~~}. . 'Serving The Bayshore Area Since 1947' City of La Porte County of Harris State of Texas Before me, the undersigned authority, on this date came and appeared Karolyn Kellogg, a duly authorized representative of The Bayshore Sun, a semi-weekly newspaper published and generally distributed in the City of La Porte, Harris County, Texas and who after being duly sworn, swears the attached notice was published in The Bayshore Sun dated I () / () 7/0/ / K rolyn Kellogg Authorized Representative Sworn and subscribed before me this / 11 H day of ~ ~~~~~ Notary Public Harris County, Texas 281-471-1234 Fax: 281-471-5763 n.'.'. ......'. ....'. . , " ;:, ;.~:: ~':t ,2001 e e City of La Porte Established 1892 September 21, 2001 Honorable Mayor Norman Malone and City Council City of La Porte Re: Rezone Request #R01-005 Dear Mayor Malone: The La Porte Planning and Zoning Commission, during its September 20, 2001, meeting, held a public hearing to consider Rezone Request #R01-005. Mr. Dan Dompier, owner's agent, seeks to rezone approximately 8.2628 acres of land located along Fairmont Parkway at Underwood Road, further described as the east half of TR 718, TR 719, and adjoining street out of La Porte Outlots, W. B. Lawrence Subdivision, Harris County, Texas. The applicant seeks to have the property rezoned from Neighborhood Commercial (NC) to Planned Unit Development (PUD). The purpose of rezoning is to allow development of office buildings and a banking facility at this site. The Planning and Zoning Commission, by unanimous vote, has recommended approval of Rezone Request #R01-005. Respectfully submitted, ~~~ Chairperson, Planning and Zoning Commission 604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020 EXHI$ITC e e THE STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE NOTICE OF PUBLIC HEARING In accordance with the provisions of Section 106-171 of the Code of Ordinances of the City of La Porte, and the provisions of the Texas Local Government Code, notice is hereby given that the La Porte City Council will conduct a public hearing at 6:00 P.M. on the 22nd day of October, 2001, in the Council Chambers of the City Hall, 604 West Fairmont Parkway, LaPorte, Texas. The purpose of this hearing is to consider rezone request #R 01-005, which has been requested for approximately 8.2628 acres of land being east half oflR 718, TR 719, and adjoining street, out of La Porte Outlots, W. B. Lawrence Subdivision, Volume 83, PG. 344, HC.D.R out of the William M. Jones Survey, A-482, City of La Porte, Harris County, Texas. The property in question is located along Fairmont Parkway at Underwood Road. The request, submitted by Mr. Dan Dompier, on behalf of Summer Winds, LLC., seeks to have the property in question rezoned from Neighborhood Commercial (NC) to Planned Unit Development (PUD). The purpose of rezoning is to allow the development of office buildings and a banking facility at this site. A regular meeting of the City Council will follow the public hearing for t he purpose of acting upon the public hearing items and to conduct other matters pertaining to the Council. Citizens wishing to address the Council pro or con during the Public Hearing will be required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett City Secretary This facility has disability accommodations available. Requests for accommodations or interpretive services at meetings should be made 48 hours prior to the meeting. Please contact City Secretary's office at (281) 471-5020 or TDD Line (281) 471-5030 for further information. E>>lIBITf).i . - 281-471-1234 Fax: 281-471-5763 E-mail: baysun@swbelLnet e undersigned authority, on this date peared Karolyn Kellogg, a duly authorized ! e of The Bayshore Sun, a semi-weekly ublished and generally distributed in the rte, Harris County, Texas and who after- om, swears the attached notice was The Bayshore Sun dated /O/03/0( , - . ,0,..., "'....T' --. " _ _ ~_ ,,~:.'_:.;~<';:~{tj\::.::,~:~;~\: ~:L:~::">' '. C1.rY OFt.APORTE . , M.a.rthaGilletL/" "tli.j~a~\"i .j ~tYli~,fap!ii~ h~S"'~I$abilitY' i accomrn()(jation' '.' . '. ". i tif::S",",ubscribed before me this "-'maaei4 .. ....... .... ..' j , 2001. meetiIl9"..!PIli'~eo'lqP"i!\t~') . ...1....." ~K;a~~ Karolyn Kellogg Authorized Representative f-c!- day of ~ .~A~~ Sandra E. Bumgarner Notary Public Harris County, Texas EXHI$IT E e e e e A Meeting of the La Porte RECEIVED - q-/3-() J PLANNING Planning and Zoning Commission (Type of Meeting) Scheduled for September 20, 2001 (Date of Meeting) to Consider Zone Change Request #R 01-005 (type of Request) I have received notice of the above referenced public hearing. I am in FAVOR of granting this request for the following reasons: f I I ( f I L-o /\{ D.. )\1 0 ,/\1 I fJ ' f- v l. =- am O:POS~D to granting this request for the follow~g reasons: . r . nUS /(; YY)t.2S+ (If Cl !') ~hb..o rh,QD~ () -t . Y ("6 ,in €(Lti oj I P1};;P ~v:::t. -:ILwe, 1!2CWjeJ. -=h'l I [de I 11 G,y,. 6-F-Y, Ice. r :(' 1<.. OJ- E. Cb. ill!:: , uJ e> LLI J. hot! e..- Q.nugb.:t I VI. -dvd ,~D d of'- (A.Y'("O. ~ . b('PM t" :I, ~/)n+llCtLl~ 32:,6b r::l0ileW~od12r Name (please print) :.J . Ad ess ~i-ry)~ ~aPDcl~ Ii. ?7571 ' Si nature City, St<te ip I . e e Staff Report September 20, 2001 Zone Change Request #R 01-005 Requested by: Dan Dompier, Owner's agent Requested for: East 'l1ofTR 718, TR 719 LaPorte Outlots Location. Fairmont Parkway at Underwood Road Land-Use Map: Mid-to-High Density Residential and Low Density Residential Present Zoning: Neighborhood Commercial (NC) Requested Zoning: Planned Unit Development (p.UD) Background: The property in question is approximately 8.2628-acres in area described as East 'l1 of TR 718, TR 719, and adjoining street out of La Porte Outlots, W.B. Lawrence Subdivision, out of the William M. Jones Swvey, Abstract 482, City of La Porte, Harris County, Texas. The undeveloped tract above is just south of Caniff Road at the northwest comer of Underwood Road and Fairmont Parkway. To the north of the property in question is low -density residential development (Summer Winds Subdivision); to the west is a church, there is an existing convenience store/gas station on a small parcel at the comer of Fairmont Parkway and Underwood Road; to the south and across Fairmont Parkway is the Bayport North Industrial Park; and to the east and across Underwood Road is high-density residential development (Fairmont Oaks Apartments) along with a commercial strip center. The applicant's stated purpose for this rezoning request is to allow mixed- use commercial office building development. If approved, the applicant's initial project would be a banking facility fronting Fairmont Parkway. The balance of the development would be office buildings with various uses. When the applicant examined our zoning ordinance, most of the uses he considered applicable to his development were included within the Neighborhood Commercial section. However, there are additional office- based uses the applicant would like to market his office space to that are under the General Commercial category in our zoning ordinance. The applicant considered a request for General Commercial zoning, but determined that particular category of uses too intense with the existing adjacent low-density residential development. If PUD zoning is approved, the applicant would pursue approval of a list of office and retail type uses acceptable within his office buildings. This list e e Zone Change Request #R 01-005 P&Z 9/20/01 Page 2 of 4 would become part of the project's General Plan that City staff would use to determine if a contemplated use and tenant would be allowed. Analysis: The neighborhood commercial classification is intended to provide. for the establishment of local centers for convenient, limited office retail or seIVice outlets which deal directly with the customer for whom the goods or services are furnished. These centers are intended to provide seIVices and goods for the surrounding neighborhoods and are not intended to draw customers from other geographic areas. The City is composed of numerous types of development, which are closely interrelated and interdependent with one another. With careful consideration and planning, this interrelationship may be beneficial to the whole community. In fact, the City has been consistent with providing a conducive environment to the extent and nature of development along major roads within the City limits. The relationship of the applicant's proposal to the Comprehensive Plan needs to be emphasized as much as possible. In considering this request, Staffhas reviewed the applicable chapters of the Comprehensive Plan. These chapters include; Land Use, Transportation, and Utilities. Land Use - The recently adopted Comprehensive Plan that contains the La Porte 2020 Land Use Plan indicates this area envisioned as developing as a mixture of mid-to-high density residential and low density residential uses. However, the previous land-use plan showed this area as a mixture of commercial uses and mid-to-high density residential uses. The previous land-use plan would better support the current NC zoning classification for this property as well as the requested PUD zoning classification with the intent of developing an office park. There has been discussion in the past regarding developing a grocer/retail use at this very location. With that in mind, the Commission may want to consider a modification to the La Porte 2020 Land Use Plan that would include commercial uses at the comer of Fairmont Parkway and Underwood Road for it appears commercial land uses were inadvertently eliminated from this area. Conformance of a zoning request with the land use plan is one consideration among several criteria to be considered in approving or denying a rezoning application. Other criteria may include: . Character of the surrounding and adjacent areas; e e Zone Change Request #R 01-005 P&Z 9/20/01 Page 3 of 4 . Existing use of nearby properties, and extent to which a land use classification would be in harmony with such existing uses or the anticipated use of the properties; . Suitability of the property for the uses to which would be permissible, considering density, access and circulation, adequacy of public facilities and services, and other considerations; . Extent to which the designated use of the property would harm the value of adjacent land use classifications; . Extent to which the proposed use designation would adversely affect the capacity or safety of that portion of the road network influenced by the use; . Extent to which the proposed use designation would permit excessive air pollution, water pollution, noise pollution, or other environmental harm on adjacent land use designations; and, . The gain, if any, to the public health, safety, and welfare due to the existence of the land use designation. None of the above criteria present any concerns over the proposed change in zoning designation. Transportation - Being located at the comer ofFairmont Parkway, a semi- controlled access highway and UndeIWood Road, a primary arterial road, provides more than adequate accessibility for circulation of traffic and can easily accommodate the traffic generated by the proposed uses. There should be very limited impact on traffic flow within the vicinity even after full implementation of the proposed project. The private drives and parking areas will be designed and constructed in conformance with City Standards. Since traffic movement is the primary function of Fairmont Parkway and UndeIWood Road, access management in the vicinity of this intersection would be essential. Driveways connecting directly onto these roadways should be minimized to avoid traffic congestion and other delays caused by turning movements for vehicles entering and existing driveways. Utilities - Public facilities and services are sufficient to handle the supp ly of potable water and fire protection in the area. In addition, a large diameter sewer main fronts this property along Fairmont Parkway. Provisions will have to be made to ensure that sufficient utility extensions are made to serve this development. Storm water drainage will require on -site detention to mitigate any adverse impacts associated with this proposed development. e - Zone Change Request #R 01-005 P&Z 9/20/01 Page 4 of 4 Conclusion. Based on the above analysis, staff fmds the requested change is compatible with the zoning and uses of nearby properties. The tract in question is suitable for the requested change to PUD making an environment conducive for business development. Development within the subject tract should not negatively impact the surrounding properties and should not harm the value of nearby properties. It would not have a significant impact on traffic conditions in the area and utilities would not be affected. In reviewing this request the Commission should consider the following points : . There was no apparent error in asslgmng the present zonmg designation to the tract in question. . The applicant's requested zoning provides some flexibility for the developer while at the same time allowing the City to review specific uses and site layouts at the various stages of the proposed development. Options available to the Commission are: . Recommend to Council approval of this rezoning request from NC to PUD. . Recommend to Council denial of this rezoning request from NC to PUD. e - e e RRQlTRST FOR CITY COITNCn, AGRNnA ITRM Agenda Date Requested: October 22,2001 Requested By: M. Gille~~ent: City ~ecret"ty" Office _ Report _ Resolution X Ordinance Exhibits: Ordinance 1000-1-J, Publication and LPISD Letter and Minutes SlTMMARY & RRCOMMRNnATION Ordinance 1000-I-J, if approved, would allow a new applicant to sell beer and/or wine at a proposed restaurant located on City of La Porte Municipal Airport property and located within 300 feet of a public school. The City has processed the new application and it meets Code of Ordinances regulation on past due taxes and the Police Department has reviewed the applicant. However, the location is on City-owned property and is located within 300 feet of a public school. The Texas Alcoholic Beverage Commission Code allows the City Council to grant a variance and allow approval of this application. The La Porte Independent School District was notified and has no objection to this permit being issued (see attached letter and minutes). If approved the permit would be issued in the name of Rixster' s Restaurant. Ordinance 1 000-I-J will be amended by adding the following: STREET ADDRESS OF THE PROPERTY: 10615 Y1 West Main, La Porte, Harris, County, Texas 77571. LEGAL DESCRIPTION OF THE PROPERTY: Lots 1,2 and 3, ofTR 4A, BLK 1 and Lots 1,2,3 and 4, ofTR 5, BLK 2 of the W.J. Payne Survey, Town of La Porte, Harris County, TX PROPERTY OWNER: City of La Porte, Texas NAME OF APPLICANTS: Sherrie Jo Williams ADDRESS OF APPLICANT: 616 N. Shady Lane, Texas 77571 TRADE OR BUSINESS NAME OF RESTAURANT BUSINESS: Rixter's Restaurant Action Required by Council: Consider approval of Ordinance 1000-1-J and grant a variance to allow the sale of alcoholic beverages.2.r:fitt: of La Porte Municipal Airport property and located within 300 feet of a school district. Section 7 ofth~'f Ordinance also stipulates that the applicant must obtain a sub-lease, building permit and certificate of occupancy on or before April 22, 2002. Availability of Funds: _ General Fun<L- Water/Wastewater _ Capital Improvemenf- General Revenue Sharing _ Other Account Number: Funds Available: YES NO nate )o/efl e e ORDINANCE NO. 1000-1-J AN ORDINANCE OF THE CITY OF LA PORTE, TEXAS, GRANTING A VARIANCE TO CHAPTER 6, SECTIONS 6.2 AND 6.3 AND AMENDING CHAPTER 6, SECTION 6-78 OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, BY PERMITTING THE SALE AND CONSUMPTION OF BEER AND/OR WINE AT A RESTAURANT LOCATION SITUATED WITHIN 300 FEET OF A PUBLIC SCHOOL AND SITUATED ON CITY-OWNED PROPERTY AND BY ADDING AN AREA AT A RESTAURANT WHERE WINE AND/OR BEER FOR CONSUMPTION ON THE PREMISES MAY BE SOLD; FURTHER PROVIDING A SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of La Porte has, in Chapter 6 of the Code of Ordinances of the City of La Porte, regulated the location, closing hours, and sale of wine and/or beer on premises in accord with provisions of Texas Codes Annotated, Alcoholic Beverage Code, Chapter 105, Section 105.05 and Section 105.06; and in accord with the provisions of Texas Codes Annotated, Alcoholic Beverage Code, Chapter 109, Subchapter C, Section 109.31 et seq; and WHEREAS, the Code of Ordinances of the City of La Porte expressly limits the locations at which wine and/or beer may be sold in the City, and further expressly identifies the names of establishments and permit holders authorized to sell wine and/or beer under the terms of said Code; and WHEREAS, a new applicant desires to sell wine and/or beer at a location not previously permitted in the Chapter 6 of the Code of Ordinances of the City of La Porte; and WHEREAS, the City has determined that the new applicant is requesting a permit to serve beer and/or wine at a restaurant location situated within 300 feet of a e Ordinance No. 1000-1-J Page 2 e public school within the La Porte Independent School District and is also on property owned by the City of La Porte at the La Porte Municipal Airport; and WHEREAS, the City Council of the City of La Porte called a public hearing on the 22nd day of October, 2001, at 6:00 p.m., pursuant to due notice, to consider the proposed issuance of a variance to Chapter 6 of the Code of Ordinances of the City of La Porte which would be required in order to issue Applicant a permit to serve beer and/or wine at the restaurant location proposed by Applicant. There is attached to this Ordinance as Exhibit "A", incorporated by reference herein and made a part hereof for all purposes, a copy of the notice of public hearing which the City Council of the City of La Porte hereby finds was properly published and posted. The publisher's affidavit of publication of notice of said hearing is attached hereto as Exhibit "B", and incorporated by reference herein and made a part hereof for all purposes; and WHEREAS, the City finds that the Board of Trustees of the La Porte Independent School District met in a Special/Workshop Meeting on the 25th day of September, 2001, to consider the Applicant's request for issuance of a permit to serve beer and/or wine at a restaurant location situated within 300 feet of a public school. The City Council of the City of La Porte is in receipt of the written statement from the Board of Trustees of the La Porte Independent School District indicating that the School District does not oppose the proposed location for said restaurant, by letter dated September 26, 2001, a true copy of which letter is attached hereto as Exhibit "C", incorporated by reference herein and made a part hereof for all purposes; and e Ordinance No. 1000-1-J Page 3 e WHEREAS, the City has, pursuant to the terms of said Code, made its investigation to ascertain whether, if said variance is granted, said new applicant would qualify for a beer and/or wine permit from the City; and WHEREAS, the City has determined that the issuance of a variance to Chapter 6 of the Code of Ordinances of the City of La Porte is desirable and should be approved by the City Council; and WHEREAS, the City has determined that the new applicant therefore qualifies for a beer and/or wine permit from the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. Pursuant to Chapter 109.33 of The Texas Alcoholic Beverage Code, Applicant is granted a variance to Chapter 6, Section 6.2 of the Code of Ordinances of the City of La Porte, permitting the serving of beer and/or wine at a restaurant location situated within 300 feet of a public school within the La Porte Independent School District. Said variance is granted to Applicant named below in Section 3 of this ordinance at the specific location stated therein. Section 2 Applicant is granted a variance to Chapter 6, Section 6.3 of the Code of Ordinances of the City of La Porte, permitting the serving of beer and/or wine at a restaurant location situated on City-owned property. Said variance is granted to Applicant named below in Section 3 of this ordinance at the specific location stated therein. e Ordinance No. 1000-1-J Page 4 e Section 3. Chapter 6, Section 6-78 of the Code of Ordinances of the City of La Porte is hereby amended by granting a new permit for the operation of a restaurant, as defined in said Code, at the following location, which permit shall be personal to the Applicant, and non-transferable, and shall be further conditioned that the permittee shall comply with the provisions of the Texas Alcoholic Beverage Code, and all other applicable federal, state, and local laws and ordinances, including other provisions of this ordinance and the Code of Ordinances of the City of La Porte; STREET ADDRESS OF PROPERTY: 10615-% West Main, La Porte, Harris County, Texas 77571 LEGAL DESCRIPTION OF PROPERTY: LOTS 1, 2 and 3, of TR 4A, BLK 1 and LOTS 1,2,3 and 4, of TR 5, BLK 2 of the W. J. Payne Survey, Town of La Porte, Harris County, TX PROPERTY OWNER: City of La Porte, Texas NAME OF APPLICANT: Sherrie Jo Williams ADDRESS OF APPLICANT: 616 N. Shady Lane, La Porte, Texas 77571 TRADE OR BUSINESS NAME OF RESTAURANT BUSINESS: Rixsters Restaurant Section 4. It is the intent of the City Council of the City of La Porte that this Ordinance merely permit the sale of wine and/or beer during the hours set by the general laws of the State of Texas by retailers selling wine and/or beer for consumption on premises at the locations established in Section 3 of this Ordinance. This Ordinance is not an attempt to create zoning or other land use rights of property owners at said location such that the provisions of Chapter 106 of the Code of Ordinances of the City of La Porte, the City of La Porte Zoning Ordinance, together with all amendments thereto (as such provisions impose standards on premises or businesses within the City of La Porte, regardless of whether such business or premises are required to have a license or permit under the Texas Alcoholic Beverage Code) govern and supersede the e Ordinance No. 1000-1-J Page 5 e provisions of this Ordinance, in the event of a conflict between this Ordinance and the provisions of the Zoning Ordinance and amendments thereto. This application for wine and/or beer for consumption on premises shall be subject to the provisions of: a. The Texas Alcoholic Beverage Code; b. Chapter 6 of the Code of Ordinances of the City of La Porte, except for variances granted herein; c. This Ordinance insofar as this Ordinance does not conflict with the provisions of the Texas Alcoholic Beverage Code; and d. The Zoning Ordinance of the City of La Porte, and all amendments thereto, as such provision apply to all businesses within the City of La Porte, regardless of whether or not such businesses are required to obtain a license or permit under the provisions of the Texas Alcoholic Beverage Code. Section 5. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this ordinance, and it is hereby declared to be the intention of this City Council to have passed each section, sentence, phrase or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase or clause, or part thereof, may be declared invalid. Section 6. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council is posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Chapter 551, Tx. Gov't Code; and that this meeting has been open to the public as required by law at all e Ordinance No. 1000-1-J Page 6 e times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 7. This variance granted in Sections 1 of 2 of this Ordinance shall expire instanter, unless Applicant receives City of La Porte approval of their sub-lease agreement on the property and applies for, is qualified to receive, and in fact receives a building permit, and a certificate of occupancy pursuant to the Codes and Ordinances of the City of La Porte, and the laws of the state of Texas, on or before April 22, 2002. Section 8. This Ordinance shall be effective from the date of its passage and approval, and it is so ordered. PASSED AND APPROVED this the 22nd day of October, 2001. ATTEST: ~tWIi~ (iu;JJ Ma ha Gillett, . City Secretary 6E:dl~ Knox W. Askins, City Attorney e e EXHIBIT A & B 281-471-1234 Fax: 281-471-5763 re Sun 'Serving The Bayshore Area Since 1947' )rsigned authority, on this date. Karolyn f<ellogg, a duly authorized Bayshore Sun, a semi-weekly and generally distributed in the ris County, Texas and who n, swears the attached notice was shore Sun dated /0/07/0/ I K rolyn Kellogg Authorized Representative d before me this / 1/ H day of ~ ~~~~~ Notary Public Harris County, Texas ,2001 e e ."--- EXHIBIT C EXC ELLE:'olC E... .l La Po rteI::;D trn diti 011 La Porte Independent School District Business Office Annex David Webb, CFO / Assistant Superintendent for Business 301 E. Fairmont Parkway La Porte, Texas 77571 281.604.7045 phone 281.604.7047 facsimile webbd@/aporte.isd.esc4.net September 26, 2001 City Secretary's Office City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 To whom it may concern, At the monthly Board of Trustees workshop held on Tuesday, September 25, 2001, the La Porte ISD Trustees approved a measure supporting the establishment of a restaurant at the airport. The restaurant is to be established by Rick and Sherrie Williams, individual taxpayers in La Porte, and is tentatively to be named Rixters. The Board of Trustees voted 0 against, 1 abstaining and 6 for support of the restaurant. Minutes of the meeting from Board Secretary Jean Williams are attached. The restaurant will be within 300 feet of a driveway leading to Rizzuto Elementary School. It was the Board's determination that this posed no threat as the driveway runs a significant distance behind the school and the elementary students attending would not be subject to alcohol sales. Please let us know if additional input from the District is required. Sincerely, ~/NtL RECEIVED OCT 0 3 2001 CITY SECRETARY'S OFFICE David Webb e e BOARD OF TRUSTEES LA PORTE INDEPENDENT SCHOOL DISTRICT Minutes ,SpeciallWorkshop Meeting COpy FOR YOUR INFORMATION Board Room, Administration Building September 25, 2001 Present: Gordon Westmoreland, Bill Baker, Jay Guillot, Gene Horn, Dr. Charles Hilborn, Chris Osten, and Debi Krampen. Administrators: Drs. Sawyer, Pitre, lIes, and Owens, Jim Schul, David Webb, Mike Clausen, Beth Rickert, principals and other administrators. I. BOARD TRAININGIWORKSHOP At 6:00 pm, Hazel McSwain presented the Title 4 Report: Safe and Drug-free Schools and Communities as required by law; Dr. lIes then explained how the District's student discipline policy was developed and updated each year according to the directives of Texas Education Code, Chapter 37, Discipline: Law and Order. (Attached to bound minutes) ll. OPENING At 7:19 pm, the president called the meeting to order and announced that a notice of the meeting had been posted in a manner required by law, and that a quorum was present. President Westmoreland solicited the superintendent and Board members for items to be discussed in Closed Session. It was a request of Dr. Sawyer's that: 1. VI. DiscussionJInformation, item 2 be discussed in Closed Session. m. BUSINESS 1. Bill Baker moved, seconded by Gordon Westmoreland, to TABLE action on the Freeport Exemption at this time since not enough companies have signed their intent for the exemption at this time. Motion carried unanimously. (Attached to bound minutes) Bd. SpecfWrkshp. Mtg. 9/25/01 1 e e (III. Business, continued) 2. Chris Osten moved, seconded by Jay Guillot, to grant support to Rick and Sherrie Williams for a liquor license for their proposed restaurant on Spencer Highway near Rizzuto Elementary. Motion carried with Trustees Osten, Westmoreland, Hilborn, Guillot, Horn, and Krampen voting yea and Trustee Baker abstaining because of a possible conflict of interest. (Attached to bound minutes) 3. Bill Baker moved, seconded by Gene Horn, to approve two (2) budget amendments as presented. Motion carried unanimously. (Attached to bound minutes) IV. PERSONNEL 1. Chris Osten moved, seconded by Bill Baker, to approve the employment of a non-instructional employee (electrician). Motion carried unani- mously. (Attached to bound minutes) V. OPERATIONS 1. Bill Baker moved, seconded by Debi Krampen, to approve the revised energy consulting services proposal from Comfort Systems USA, ESS Engineering through the procurement stage of electrical deregulation in the amount of $19,000. Motion carried unanimously_ (Attached to bound minutes) VI. DISCUSSION/INFORMATION 1. Chuck Davis, Web master & Director for Educational Technology, discussed the Internet Safety Plan and the current status of the plan how safeguards have been put in place to protect students'access to undesirable web pages. (Attached to bound minutes) Bd. Spec/Wrkshp. Mtg. 9/25/01 2 OCT 18 '01 08:55AM LAP4If I 5 D e P.2/2 (VI. Discussion/Information, continued) At 8:31 pm. the Board recessed the Open Session to convene in Closed Session under Section 551.072 for the purpose of discussing the pu:rohase, exchange, lease or value of real property. At 9:00 pm, the Board recessed the Closed Session and reconvened in Open Session. 2. Or. Sawyer discussed the possible future purchases/sales/exchange of properties in Closed Session. VII. ADJOURNMENT At 9:02 pm, Chris Osten moved, seconded by Jay Guillot, to adjourn the meeting. Motion camed unanimously. GtnLLOT,SECRE ARY BO OF TRUSTEES OF THE LA PORTE INDEPENDENT SCHOOL DISTRICT ~ GORDON WESTMORELAND, PRESIDENT BOARD OF TRUSTEES OF THE LA PORTE INDEPENDENT SCHOOL DISTRICT Bd. Spec/WrlGhp. Mtg. 9/25/01 3 e e e e REQUEST FOR CITY COUNCIL AGENDA ITEM genda Date Requested: October 22, 2001 Appropriation Requested By: Rohert T Herrerll Source of Funds: Department: A.dlllillilitr~tigll Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Resolution II and Supply Agreement Amount Reque~ted' Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION During the May 8, 2001, City Council meeting, Council passed Resolution I for City of La Porte to participate with H-GAC which would become a Political Subdivision Corporation named H-GAC Energy Purchasing Corporation. This resolution was the first step to joining H-GAC as an aggregate to purchase electricity. H-GAC Energy Purchasing Corporation sent out Requests for Proposals to various Retail Energy Providers (REP) to obtain pricing for the purchase of electricity. The "Initial Proposed Pricing" indicates the "Final Pricing" should fall between $0.05 and $0.059 per kWh. As a reference, current pricing is between $0.08 and $0.09 per kWh, which should be a savings of approximately 25%. If we compared this price savings to what we paid last year, the City would have paid $213,375 less. This all-inclusive price includes: ~ Energy ~ Fuel . ~ Transmission and Distribution ~ All other regulated rates ~ H-GAC Aggregation Fee - $0.00045 per kWh Below is the schedule H-GAC has submitted to all Member Buyers (participating entities): November 7 5:00 pm Deadline for Member Buyers to return Resolution 11 November 8 Noon Release list of committed Member Buyers to Retail Energy Providers (REP) November 12 Noon Deadline for REP to submit revised pricing November 13 1:00 pm Final Pricing released to committed Member Buyers November 14 5:00 pm Deadline for Member Buyers to select pricing, options and sign Supply Agreements January 1,2002 Begin electricity supply The second and final step to make a firm commitment to H-GAC Energy Purchasing Corporation is to pass Resolution 11. This resolution states the City of La Porte may withdraw our commitment to participate if the "Final Pricing" exceeds the "Initial Proposed Pricing" . Staff has reviewed Resolution II and the Supply Agreement. Staff recommends Council pass Resolution II committing the City of La Porte to participate with H-GAC Energy Purchasing Corporation. Action Required bv Council: Pass Resolution II as a firm commitment to participate with H-GAC Energy Purchasing Corporation. tiP proved for Citv Council A&enda 8 ~,,"'\ . \-t ,,""Y~"-<- Robert T. Herrera, City Manager \0\(,-(,)\ Date e e A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A "SUPPLY AGREEMENT" WITH A RETAIL ELECTRIC PROVIDER, APPROVING INITIAL PROPOSAL PRICING, AND APPOINTING AUTHORIZED REPRESENTATIVE(S) WHEREAS, H-GAC Energy Purchasing Corporation (the "Corporation") is a non-profit political subdivision corporation, as defined in Chapter 303 of the Texas Local Government Code (to be codified effective September 1,2001 as Chapter 304); and WHEREAS, the Corporation is authorized to negotiate on behalf of its members for the purchase of electricity, make contracts for the purchase of electricity, purchase electricity, and take any other action necessary to purchase electricity for use in the public facilities of the political subdivisions represented by it; and WHEREAS, c...J (the "Political Subdivision") has Corporation; and participation In the WHEREAS, the Corporation has negotiated and contracted with various Retail Electric Providers (each a "REP") and has entered into a contract with the REP referenced in the attached Supply Agreement; and WHEREAS, the Member, as a Buyer, has selected the REP referenced in the attached Supply Agreement; and WHEREAS, the Corporation has received and distributed to its members the initial proposal pricing ("Initial Pricing") of the REP and the Political Subdivision has reviewed the Initial Pricing, which is incorporated herein by reference; and WHEREAS, the Political Subdivision acknowledges that the Initial Pricing is not binding on the REP but will be updated during a subsequent time period to be announced by the Corporation, at which time final closing pricing (the "Final Pricing") will be announced; and WHEREAS, the Political Subdivision has reviewed a Supply Agreement with the selected REP (the "Supply Agreement"), a copy of which is presented with this Resolution and is incorporated herein by reference, and wishes to enter into such agreement provided that the Final Pricing does not exceed the Initial Proposal Pricing; NOW, THEREFORE, BE IT RESOLVED: 1. The Supply Agreement with the Initial Proposal Pricing made a part thereof is hereby approved and adopted. 1 Resolution II of 2 e e 2. The following officers, officials or employees of the Political Subdivision are hereby designated as "Authorized Representatives," with full power and authority to execute the Supply Agreement, so long as the Final Pricing is less than or equal to the Initial Proposal Pricing, exclusive of any regulated rates subject to change, which the Political Subdivision has elected, and take all other actions deemed necessary or appropriate to consummate the transaction authorized by this Resolution. Signature: ex ~ T. f(~ Printed Name: R n B eft -r. He (( e (tf Title: LJi f'rI /1 f11t' Tele: a~1 {.{f)k Dd--O Fax: d~/- 4" /- 1<(~Lf E-mail: u.ricASeC_/.lft-/or+e.h-.LA5 Signature: ,4 tUJ "-- ~ Printed Name: .SU:AA ((e Uey Title: Vv- (( ha S':' f'(lfJ. na!l r Tele: ~ ~ I. hi 0/-)DJ-, 0 Fax: ~ ~ (... liD (- t/ 'J. 'J f .E-mail: k ~lln{ 5 e L-l - {ct -~+ e . -f 'I- . uS PASSED AND APPROVED thi~J,v(J day of ()t-:rO fJEe ,2001. ATTESTS: By:4~~ BY:~ a)4;JJjJ) , JJ or man 1-. mOt Lone,. mati fV1a 41164. Ct Gi II-elf I (i~/~ f.l1dJ1 Printed Name and Title Printed Name and Title r (SEAL) 2 Resolution II of 2 e e ATXU ~4. TXU Energy Services 1601 Bryan Street Dallas, TX 75201-3411 February 19,2002 RECEIVED ftJEB 2 5 2002 CITY MANAGER'S OFFICE City of La Porte 604 West Fairmont Parkway La Porte, TX 77571 Attention: Robert T. Herrera Subject: Execution of Electricity Supply Contract, Contract Number 1-8CGC7 Dear Mr. Herrera, TXU Energy Retail Company LP (TXU-ER) would like to thank you for the opportunity to establish a long-term business relationship between our companies. TXU-ER hereby returns a fully executed original Contract (Offer Sheet, Price Sheet, Terms and Conditions, and Exhibit A) for your records. If you should have any further questions regarding the Contract, please contact the undersigned name for immediate attention. For any other questions regarding your account, please contact your Sales Account Manager, Alex Underwood at 214-812- 7236. Thank you for choosing TXU Energy Retail Co., as your Retail Electric Provider to meet your electric energy needs. Sincerely, S~L Ov S ~'\Jv\ C;) f,- \'Y\.,",^",-\'lL. ~~.~ ~ r 't~ I D ~ ~-1~ Name: Gary Krystek Title: Contracts Administration Mana, Phone: 214 812 8528 0 I E-mail:gkryste1@txu.comIO I) J-; ) Enclosures Cc: (SALES AM) e e TRANSACTION CONFIRMATION FOR THE SUPPLY OF ELECTRICITY Transaction Confirmation #: 1-8CGC7 25% per month for excess usage and . 25 % per month for under usage (see section IV, Calculation and Payment of Charges in the Base Contract for Supply of Electricity) XI. TERMS AND CONDITIONS THE TERMS AND CONDITIONS FOR THE SUPPLY OF ELECTRICITY ("TERMS") SEPARATELY EXECUTED BY BUYER AND SELLER, ARE PART OF THE AGREEMENT TO WHICH THIS OFFER FOR THE SUPPLY OF ELECTRICITY APPLIES. BUYER ACKNOWLEDGES THAT IT HAS RECEIVED THE TERMS, AND IN THE EVENT THAT BUYER HAS NOT PREVIOUSLY EXECUTED THE TERMS, BY SIGNING THIS OFFER BUYER AGREES TO BE BOUND BY THE TERMS AS PROVIDED BY SELLER. Seller Sign BUYER: City of La Porte 604 W Fairmont Pkwy La Porte, TX 77571 Phone: 281-471-5020 Fax: 281-741-1884 I. AGREEMENT TERM II. PAYMENT TERMS III. DEPOSIT AMOUNT IV. BILL PRESENTMENT METHOD V. PAYMENT METHOD VI. STANDARD SERVICES VII. CUSTOM SERVICES VIII. SPECIAL PROVISIONS IX COST PER KWH X MONTHLYCONTRACT USAGE TOLERANCES Position. bu.~~ Date: /( 2.,00 I Form NameNersion: OFFER SHEET 110701 SELLER: TXU Energy Services Company 1601 Bryan, 7th Floor Dallas, Texas 75201 Phone: 214-875-1000 Fax: 214-875-1001 The Primary Term for each Premise, identified in Exhibit A, shall commence upon the date of the first reading of the meter(s) on each respective Premise by the TDSP after 1/112002, or as soon thereafter as practicable, and shall end for each Premise upon the date of the first reading of the respective Premise meter(s) by the TDSP after 12/31/2003. Net 30 Days No initial deposit required. CI Paper Check Toll free number (800) 725-7920) for 24 hour emergency outage and customer service, available 7:00 a.m. to 7:00 p.m. on normal business days; Assigned customer service representative, billing analyst, and assigned professional account manager. Not Applicable Not Applicable See attached Price Sheet Name d{Y-/ Position: Date: I J '- 5 /- cJ / Page 1 e e f)TXU Price Sheet - Flat Price TXU Energy Services Contract/Plan #: Account Name: Plan Type: 1-8CGC7 City of La Porte Flat This Price Sheet is only valid in association with and shall remain subject to the Terms and Conditions for Supply of Electricity ("Terms") and Offer for Supply of Electricity referenced above and is contingent upon Customer's acceptance of the Offer prior to the Offer Expiration Date. This Price Sheet is applicable to the Customer ESI number(s) identified on Exhibit A of the Terms. Monthly Prices shall equal the sum of (i) the Monthly Standing Charge set forth below; plus (ii) the applicable per kWh charges set forth below for the electricity; plus (iii) all costs and expenses of any nature whatsoever that are charged by the Transmission and Distribution Service Provider ("TDSP") for the transmission and/or distribution of the electricity, as well as any other charges of the TDSP that are attributable to the Customer Account numbers, including, without limitation, charges for reactive power; plus (iv) all other tariffs, rates, riders, fees, and charges, charged by the TDSP or another party, that are mandated, levied, assessed, allowed, or approved by the Texas Public Utility Commission and all other governmental or regulatory authorities, on or with respect to the acquisition, sale, delivery, and purchase of the electricity; plus (v) all federal, state, and local taxes, of any nature whatsoever, imposed by all governmental and regulatory authorities, on or with respect to the acquisition, sale, delivery, and purchase of the electricity, including Seller's Texas Gross Receipts Tax on the sale of electricity to Buyer; plus (vi) the Over Capacity Charge set forth below, if applicable; plus (vii) an aggregation fee of $0.00045 per kWh actually consumed by Buyer collected by Seller on behalf of and paid to HGAC Energy Purchasing Corporation. Charge Amount Monthly Standing Charge per $0.00 service point All kWh $0.04397 per kWh $0.0233484 per kWh for delivery, excluding reactive TDSP Delivery Charges power, based upon current estimate;* Monthly price will be based upon actual charges. Tariffs, rates, riders, fees, and charges other than those included To be determined, varies by service point in TDSP delivery charges above All applicable taxes To be determined, varies by jurisdiction Over Capacity Charge $0.00 per kW The costs and expenses charged by the TDSP for delivery services may fluctuate during the Agreement Term, as will other applicable taxes, tariffs, riders, fees, and charges. * For reference purposes only. This is the current estimate of the average TDSP standard delivery costs, excluding charges for reactive power, special metering, or other miscellaneous TDSP charges. Form NamelY ersion: PRICE SHEET FLAT PRICE I 1070 I Page 1 e e ATTACHMENT A eTXU TXU Energy Services TERMS AND CONDITIONS FOR SUPPLY OF ELECTRICITY These Terms and Conditions for the Supply of Electricity ("Terms"), together with any Offer for Supply of Electricity ("Offer") and any other attachments, exhibits or appendices (including, as appropriate, one or more Price Sheets) as may be hereafter agreed to by Buyer (the term Buyer includes its employees and/or agents as appropriate), and Seller (the term Seller includes its assignees and/or as appropriate its employees, agents and/or subcontractors), shall constitute the "Agreement" for the supply of electricity to the Premise(s) of Buyer set forth in Exhibit "A" attached hereto. Seller and Buyer may hereinafter be referred to individually as a "Party" and collectively as the "Parties". "Premise(s)" herein shall mean the designated (in Exhibit "A") property or facilities and associated metered account(s) identified by an Electric Service Identifier ("ESI"), which is a unique and permanent identifier assigned to each Premise(s). A "Price Sheet(s)" is a document(s) containing a description of the method for determining charges payable by Buyer to Seller for electricity supplied pursuant to this Agreement, for specified Premises and shall contain the Offer Price. A condition precedent for the effectiveness of the Agreement shall be the execution of a separate Offer, and agreement by the Parties on the terms contained in Exhibit "A" and the appropriate Price Sheet(s). I. SUBJECT MATTER AND QUANTITY. Seller shall sell and cause delivery, and Buyer shall purchase and receive at the Point of Delivery, for use only at the Premise(s), Buyer's non-residential electricity requirements set forth on Exhibit "A" attached hereto. "TDSP" herein shall mean a transmission and/or distribution provider under the jurisdiction of the Public Utility Commission of Texas ("PUCT") that owns and maintains a transmission or distribution system for the delivery of energy; including a Municipally owned utility or Rural Electric Cooperative. "Point of Delivery" herein shall mean the point where TDSP's conductors are connected to Buyer's conductors at or near Buyer's Premises. II. [This Section has been deleted intentionally.] III. TERM. The "Agreement Term" shall be the time period, as referred to in the Offer, during which the prices contained in the Price Sheets are and shall remain in force. IV. AGREEMENT RENEWAUPRICE RENEGOTIATION. If Buyer and Seller have not agreed to new pricing and terms prior to thirty calendar days before the expiration of the then current Offer, and Buyer has not arranged for electricity from another supplier prior to the expiration of such Offer, then, effective upon expiration of the Offer and until Buyer arranges for electricity with another supplier or under a new Offer with Seller, Seller agrees to sell and deliver and Buyer agrees to purchase and receive electricity under terms and prices of Seller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. "Standard List Price Offer" herein shall mean the Seller's price charged to customer's purchasing electricity without a valid Offer for the Supply of Electricity. The Standard List Price Offer may change from time to time at the discretion of Seller. V. CALCULATION AND PAYMENT OF CHARGES. 5.1 Seller will invoice Buyer for electricity delivered to the Premise(s) during each monthly billing cycle of the Agreement Term, and for any other amounts due from Buyer to Seller hereunder, in accordance with the applicable Price Sheet, provided, however, in the event Buyer is a water district, a municipal utility district, a public utility district, a water control improvement district, all other types of special districts, or has at the time this Agreement is entered into, twenty five percent (25.0%) or more of its total electric load is attributable to water pumping load, and (a) takes total quantities of electricity (attributable to all Premise(s) hereunder) in any month that are in excess of one hundred twenty-five percent (125.0%) of the aggregated quantities listed in Exhibit "A", then Seller shall have the option to price such excess quantities at 105.0% of the then current retail market value or (b) takes quantities of electricity in a month that are less than seventy five percent (75.0%) of the aggregated quantities listed in Exhibit "A" (provided such is not the result of a force majeure event) then, in addition to paying for those quantities actually taken in accordance with the applicable Price Sheet, Buyer agrees to pay Seller the positive amount, if any, calculated as follows: (75.0% of the aggregated quantities on Exhibit "A" for the applicable month minus the aggregated quantities actually used by Buyer during the month, the "Shortfall Quantity") multiplied by (the contracted price from the applicable Price Sheet minus 95.0% of the then current retail market price for the Shortfall Quantity). "Retail Market Price" for purposes of this paragraph 5.1 only shall be: the weighted average of the ERCOT market clearing price for energy for each congestion zone in the applicable month; plus (a) all charges associated with (i) Ancillary Services, (ii) Line Losses, (iii) Unaccounted for Energy, and (iv) ERCOT administration fees; and (b) any new charges established by the Independent System Operator that load serving Qualified Scheduling Entities are required to pay. e e 5.2 If Buyer has more than one Premise, the monthly billing cycle may vary for different Premises, and may not coincide with a calendar month. In the event that an interval demand recorder ("I DR") must be installed at any Premise, if such IDR has not been installed prior to the commencement of the Agreement Term, Seller reserves the right to calculate prices based upon the appropriate deemed load profile, as obtained by Seller from the PUCT, until such IDR can be installed. 5.3 Buyer shall pay the invoiced amount on or before the due date specified in the Offer, and/or notify SeHer within ten business days of the invoice date if Buyer disputes any part of the invoice together with Buyer's reasons for disputing the invoice (however, Buyer's payment of an invoice and/or failure to dispute an invoice by the due date, in and of itself,shall not constitute a waiver by Efuyer of Buyer's right to contest later the correctness of such invoice), but the undisputed part shall remain due and payable. In the event that Buyer gives notice of such dispute, thaParties shall, for a period of .thirty calendar days following Seller's receipt of that notice, pursue diligent, good faith efforts to resolve the dispute. If the Parties are unable to resolve a disputed invoice during that thirty day period, Seller may require, in the event it is subsequently determined that Buyer should pay Seller all or part of the disputed amount, that Buyer pay interest on such amount, at a @te equal to (i) one percent (1%) per month or (ii) the highest rate allowed by law, whichever is the lesser, from the date such payment was originally due until the same is paid. Following resolution of the dispute, any amount found payable (including interest) shall be paid within thirty calendar days. If Buyer fails to pay any amount due (including any disputed amount withheld which is subsequently found to have been payable), Seller may, at its option, pursue any or all of the following actions or remedies: (a) accrue interest on the unpaid portion at a rate equal to that described earlier in this paragraph, from the date such payment is due until the same is paid, or (b) transfer Buyer to the provider of last resort ("POLR"). POLR shall be defined as a retail electric provider that has been designated by the PUCT to provide a basic, standard retail service package to requesting or defaulting customers. 5.4 If Buyer notifies Seller in writing of a justifiable concem regarding the accuracy of an invoice hereunder, Seller shall make available to Buyer during normal b\,lsiness hours the records in Seller's possession reasonably necessary for Buyer to verify the accuracy of its bill. Provided, however, neither Party may request any adjustment or correction of any statement or payment - unless written notice of such request for adjustment or correction is furnished within twenty-four (24) months of the date of the statement or payment for which such adjustment or correction is requested. 5.5 If this Agreement is terminated for any reason (including where Buyer terminates in accordance with Section VII) and Buyer does not arrange for a new electricity supply agreement with Seller or another supplier, Seller, until Buyer arranges for a new electric supply agreement with Seller or another supplier, may (in addition to other remedies) charge Buyer for any electricity used at the Premise(s) after the effective date of the termination, and subject to these Terms, at Seller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. This sub-clause shall survive termination of this Agreement. 5.6 Payments may be made by check, wire transfer, direct debit or electronic data interchange (on terms reasonably acceptable to both Parties), and notwithstanding anything to the contrary contained herein, must be received by the receiving Party on or before the dates specified in Article II of the Offer. The address to which payments are to be made shall be as set forth in the Offer. For Buyer to pay Seller other than by check, Buyer needs to obtain required information / agreements with Seller. If Buyer fails to pay the invoiced amount to Seller by the Due Date, and such amount is not disputed as provided in Section 5.3 the undisputed invoiced amount will accrue interest at the rate of 12% per year, and, in addition, Seller may pursue, but is not required to pursue, available legal remedies for collection of the unpaid invoice and late-payment interest charges, including termination of the Agreement in accordance with the procedures set forth in Article VII. 5.7 In the event Buyer ever takes electricity exceeding the Maximum kW for each Premise(s), each time it does so Buyer shall pay the Over Capacity Charges as stated in the applicable Price Sheet. "Maximum kW' for each Premise is set forth on Exhibit "A", and shall be recorded at the TDSP Point of Delivery. 5.8 Buyer agrees that it shall abide and be bound by the Agreement through the end of the Agreement Term and shall not, during the Agreement Term, claim any right to pricing based upon the Price to Beat. "Price to Beat" shall rtlean a price for electricity, as determined pursuant to the Public Utility Regulatory Act, Section 39.202, charged by an affiliated retail electric provider to eligible customers. VI. METERING EQUIPMENT. 6.1 The supply of electricity to Buyer at the TDSP Delivery Point(s) shall be measured by Metering Equipment. "Metering Equipment" herein shall mean any and all equipment required for the measurement of demand, energy, reactive demand or reactive energy and the times during which said demand or energy is consumed. Unless the accuracy of the Metering Equipment is disputed by notice given by either Party to the other the Metering Equipment shall be deemed to be accurate. If notice is given (unless otherwise agreed) the Metering Equipment shall be examined within a reasonable period by the TDSP in accordance with the applicable Substantive Rules of the PUCT. If such test finds that the inaccuracy of the registration of kWh or kW at normal loads exceeds that allowed by ANSI standard C.12, suitable adjustment shall be made in the accounts rendered by Seller, and, within a reasonable period following that determination, the Metering Equipment shall be re-calibrated or replaced by the entity that installs, validates, registers, and maintains the physical meter required on a Premise to measure customer usage. If such test finds the Metering Equipment to be accurate within the said limits, the Metering Equipment shall be deemed to be accurate and the cost of moving, testing, and replacing the Metering Equipment shall be paid by the Party e e who issued the notice. If it is discovered that any reading of the Metering Equipment or translation of the readings into charges have been incorrect then the amount of money due to and from Seller shall be paid forthwith. 6.2 If appropriate meter reading personnel cannot gain access to read the Metering Equipment, or the Metering Equipment fails to register correctly the amount of electricity supplied, or the readings are not communicated to Seller in time for whatever reason, Seller shall reasonably estimate the quantity of the electricity consumed and Buyer shall pay the charges for the estimate_d amounts subject to any adjustments which may be necessary following the reading. Buyer shall notify Seller of any dispute or query regarding the Metering Equipment made by the TDSP. Seller is not responsible for damage to the Metering Equipment unless caused by Seller's negligence. - VII . TERMINATION OF AGREEMENT. 7.1 A material breach of this Agreement includes: (a) the failure of either Party to make any payment due to the other Party pursuant to the terms hereof, provided, however, that notwithstanding the foregoing or anything else to the contrary in this Agreement, Supplier may not terminate this Agreement for non-payment by Buyer of an undisputed invoiced amount unless the undisputed invoiced amount remains unpaid for thirty (30) days after the due date; (b) the failure of a Party to comply with any other material term of this Agreement; (c) a Party becomes or declares that it is insolvent or bankrupt, or becomes or declares that it is the subject of any proceedings, or is taking any action whatsoever, relating to its bankruptcy, liquidation or insolvency, or is not generally paying its debts as they become due, (d) a Party fails to comply with any federal, state or local law, regulation, rule or order that causes a material adverse affect upon this Agreement, either Party or either Party's performance of its obligations described in this Agree'ment; (e) if Buyer enters into another electricity supply agreement for any Premise(s) with another retail energy provider that covers any period during the Agreement Term; or (f) if Buyer, except as provided in paragraphs 7.2 and 14.3 below, sells, leases, closes or otherwise conveys or assigns any Premise(s) in which the electricity sold hereunder is utilized. If either Party commits a material breach of this Agreement, the non-breaching Party shall give written notice to the breaching Party that describes the breach in reasonable detail ("Original Notice"). The non- breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, at law, or in equity, terminate this Agreement (i) by providing an additional notice if the breaching Party does not pay all amounts due and owing set forth in the Original Notice within ten calendar days of the date of the Original Notice, or (ii) effective immediately in the Original Notice in the event the breach pertains to (c), (e), or (f) in this paragraph above, or (iii) by providing an additional notice if the breaching Party fails to cure any breach other than one related to (a), (c), (e), or (f) in this paragraph above within thirty calendar days of the date of the Original Notice. 7.2 (a) In the event Buyer sells, closes, or leases a particular Premise, without selling, closing, or leasing all of the Premises, Buyer shall have the right to delete that particular Premise and the quantities of electricity attributable to that Premise through the end of the Agreement Term (the "Liquidated Quantities") from this Agreement without terminating the Agreement (a "Premise Buyout Option"). If Buyer desires to exercise a Premise Buyout Option with regard to a Premise, Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of a Premise Buyout Option, in the event a new owner of the applicable Premise (i) is willing to sign a new contract with Seller upon the same terms and conditions as Buyer's contract, (ii) is deemed creditworthy by Seller, and (iii) the new owner and Seller can legally enter into such a contract in accordance with the rules and regulations of the PUCT, then the Premise will be deleted from this Agreement and neither Party will owe any compensation to the other. In the event that the new owner (i) is unwilling to sign a contract with Seller upon the same terms and conditions, (ii) is not reasonably deemed creditworthy by Seller, or (iii) the new owner and Seller cannot legally enter into the contract, then Buyer agrees to pay Seller the positive amount, if any, calculated as follows: the Liquidated Quantities multiplied by (the price that Buyer would have paid for the Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail market price). Buyer shall pay such amount, if any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be modified to reflect the deletion of such Premise and its Liquidated Quantities, and all other terms and conditions of this Agreement shall remain in full force and effect with respect to the remaining Premises. (b) In the event Buyer reduces its operations at a Premise, Buyer shall have the right to delete the quantities of electricity attributable to the reduction in operations at such Premise from the effective date of the reduction through the end of the Agreement Term (the "Reduced Operations Liquidated Quantities") from this Agreement without terminating the Agreement. If Buyer desires to exercise such right with regard to a Premise, Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of such right, Buyer agrees to pay Seller the positive amount, if any, calculated as follows: the Reduced Operations Liquidated Quantities multiplied by (the price that Buyer would have paid for the Reduced Operations Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail market price for the liquidated quantities). Buyer shall pay such amount, if any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be modified to reflect the deletion of the liquidated quantities, and all other terms and conditions of this Agreement shall remain in full force and effect. (c) Both Parties will work in good faith during the Agreement Term to reasonably accommodate and assist Buyer with the management of its electricity needs at the Premises. Since it is not possible to foresee the evolution of the deregulated power industry in Texas, various reasonable options for Buyer to achieve this are evolving and under development by Seller. For example, if Buyer desires to contract for additional electricity, both Parties will work in good faith to mutually agree upon the terms and conditions that are economically viable to both Parties. However, notwithstanding the previous language, e e nothing contained herein shall be construed as to deny or diminish the economic benefit of this Agreement to either Party, and neither Party shall be under any obligation whatsoever to agree to a modification that would have such result. 7.3 (a) In the event that this Agreement is terminated by Seller pursuant to Section 7.1,...the Parties agree, that in addition to all amounts Buyer may owe Seller prior to the termination, Seller's damages shall be the positive amount, if any, calculated as follows: (all remaining unpurchased quantities of electricity reflected on Exhibit "A" through the end of the Agreement Term) multiplied by (the price that Buyer would have paid for the unpurchased quantities through the end of the Agreement Term according to the applicable Price Sheet, minus the current retail market price for the unpurchased quantities at the time of termination) plus (all reasonable costs and expenses incurred by Seller). Such amount shall be immediately due and payable within thirty calendar days following such termination. The current retail market price in this instance shall mean the price that Seller would reasonably be able to obtain from a bona-fide third party if entering into a contract with another customer for the unpurchased quantities, and for the remaining term after the Early Termination Date through the end of the Agreement Term. Seller shall have a duty to use commercially reasonable efforts to mitigate its damages. (b) In the event that this Agreement is terminated by Buyer pursuant to Section 7.1..,the Parties agree, that in addition to all amounts Seller may owe Buyer prior to the termination, Buyer's damages shall be the positive amount, if any, calculated as follows: (all remaining unpurchased quantities of electricity reflected on Exhibit "A" through the end of _the Agreement Term) multiplied by (the current retail market price for the unpurchased quantities at the time of termination, minus the price that Buyer would have paid for the unpurchased quantities through the end of the Agreement Term according to the applicable Price Sheet) plus (all reasonable costs and expenses incurred by Buyer). Such amount shall be immediately due and payable within thirty calendar days following such termination. The current retail market price in this instance shall mean the price Buyer would have to pay if entering into a contract with another Retail Electric Provider ("REP") for the same quantities, and for the remaining term after the Early Termination Date through the end of the Agreement Term. The price offered by the POLR, or any REP's Standard List Price Offer, shall not be used to calculate Buyer's damages. Buyer shall have a duty to use commercially reasonable efforts to mitigate its damages. 7.4 Buyer may terminate this Agreement, on a prospective basis, in the event of non-appropriation of funding for this Agreement by Buyer's Governing Body. Buyer agrees, to the full extent allowed by Texas law, that if any funds are appropriated for electricity costs, such funds shall be applied first to the cost of electricity provided pursuant to this Agreement. Buyer agrees to notify the REP in writing of such non-appropriation at the earliest practicable time subsequent to the failure to appropriate, and as of Buyer's termination date, Seller shall have no further duty to supply Electricity to Buyer and shall move service for the Accounts to the POLR as established by the PUCT on the date of termination for non-appropriation. VIII. FORCE MAJEURE. If either Party is unable to perform its obligations in whole or in part due to an event of force majeure as defined herein, then the obligations of the affected Party shall be suspended to the extent made necessary by such event. The term "force majeure" means any cause not within the control of the Party claiming relief, including, but not limited to, Acts of God, including magnetic disturbances but not including extremes of temperature alone; arrests, orders, directives, restraints and requirements of the government and governmental agencies, either federal or state (excluding Buyer), civil or military; civil disorder; strikes or labor disputes; failure, repair or change of or obstruction in electric power lines, equipment or machinery; the failure of the TDSP to receive, transport, or deliver, or otherwise perform, unless due to the failure of the Party claiming force majeure to perform such Party's obligations hereunder; an event of force majeure of Seller's supplier(s) or with Buyer's electrical equipment at Buyer's Premises; or any other cause which by the exercise of reasonable diligence such Party could not have prevented or is unable to overcome. Any such event of force majeure shall, so far as possible, be remedied with all reasonable dispatch. It is understood and agreed that the settlement of strikes or lockouts will be entirely within the discretion of the Party having the difficulty, and that the above requirement of the use of diligence in restoring normal operating conditions will not require the settlement of strikes or lockouts by acceding to the terms of the opposing party when such course is inadvisable in the discretion of the Party having the difficulty. Neither financial distress nor the inability of either Party to make a profit or avoid a financial loss shall be deemed a force majeure event, nor shall (i) changes in the market prices of fuel, energy, or electricity, -or (ii) a Party's financial inability to perform its obligations under this Agreement, constitute an event of Force Majeure hereunder. IX. WARRANTIES AND LIMITATIONS OF LIABILITIES. 9.1 Seller hereby warrants to Buyer that at the time of delivery of electricity hereunder it will have good title and/or the right to sell such electricity, and that such electricity will be free and clear of all liens and adverse claims. Title will pass to Buyer at the TDSP Point of Delivery. EXCEPT AS PROVIDED FOR IN THE FIRST SENTENCE OF THIS PARAGRAPH, SELLER EXPRESSLY DISCLAIMS AND MAKES NO WARRANTIES, WHETHER WRITTEN OR VERBAL, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY EXPRESS, IMPLIED, OR STATUTORY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 9.2 Unless otherwise expressly provided herein, any liability under this Agreement will be limited to direct actual damages as the sole and exclusive remedy, and all other remedies or damages at law or in equity are waived. Neither Party will be liable for consequential, incidental, punitive, exemplary or indirect damages, including lost profits or other business interruption damages, whether in tort or contract, under any indemnity provisions or otherwise in connection with this Agreement. The limitations imposed on remedies and damage measurement will be without regard to cause, including negligence of any Party, e e whether sole, joint, concurrent, active or passive; provided no such limitation shall apply to damages resulting from the willful misconduct or gross negligence of any Party. X. NOTICES. All notices required or permitted under this Agreement shall be in writing and shall be deemed to be delivered when deposited in the United States mail (first class, registered or certified), postage prepaid, when deposited with an overnight delivery service, prepaid to the applicable Buyer's address shown in the attached Exhibit "A", and Seller's address as shown in the Offer, or to such address as either Party may from time to time designate as the address, or in the case of hand delivery, when delivered to a representative of either Party by a representative of the other Party; provided, however, except for payments of amounts due hereunder, either Party may provide such items hereunder by electronic mail or facsimile to the other Party at the applicable telephone number shown on the current Offer, and further provided, the original copy of such item shall be sent to the other Party within three business days thereafter. XI. APPLICABLE LAW AND REGULATIONS. 11.1 This Agreement is subject to all applicable laws, regulations, rules and orders. 11.2 In the event a judicial decision, order, new law or regulation, or a change in any law or regulation, requires a change in the method by which prices are calculated under this Agreement, or materially and directly affects a Party's ability to perform its obligations hereunder, then the Party that is negatively affected shall have the right to notify the other Party, within thirty calendar days after becoming aware of such detrimental change. The Parties shall attempt to negotiate a modification to the terms of this Agreement so as to mitigate the impact of the event. If, after twenty calendar days beyond the date of notice, the Parties have been unable to negotiate a mutually satisfactory modification to the terms of this Agreement, either Party shall have the right to terminate this Agreement upon ten calendar days prior written notice to the other Party. If such right to terminate is not exercised within forty-five calendar days after the date of the original notice hereunder, then the right to terminate this Agreement shall be waived with respect to the particular event. 11.3 Seller agrees to maintain all necessary certifications and comply with all necessary PUCT and/or ERCOT requirements in order to perform its obligations under this Agreement. 11.4 Notwithstanding anything contained in this Agreement, Buyer shall not attempt to utilize, under the provisions of this Section XI or Section VIII, or in any other manner, its inherent powers as a political subdivision of the State of Texas in order to circumvent in any way the terms and provisions of this Agreement or the intent of this Agreement. XII. FAILURE OR TEMPORARY DISCONTINUANCE OF SUPPLY. 12.1 The supply of electricity may be disconnected in the event of Force Majeure in respect of this Agreement; or if at TDSP's discretion it is necessary to do so for any of the following reasons: (a) to avoid danger; or because failure to disconnect the supply of electricity would or might involve TDSP being in breach of applicable regulations or laws; or to avoid interference with the supply of electricity to another person which TDSP reasonably believes may be caused or result from Buyer's equipment or device used at the Premise(s); or to enable TDSP or TDSP's representatives to inspect, maintain or repair any part of the equipment or the Distribution System; or in case of accident or other emergency affecting or likely to affect the Distribution System or any other system through which (directly or indirectly) Seller or TDSP receives or supplies electricity; or (b) because Buyer's electric connections or systems are deemed by TDSP to present a hazard. 12.2 In the evenUhat the supply of electricity to Buyer's Premises is interrupted due to the material breach by Seller of its contractual obligations under this Agreement and not due to (i) a force majeure event, (ii) as provided in paragraph 12.1 above, or (iii) the failure of Buyer to comply with its obligations under this Agreement, then, in the event Buyer is required to purchase replacement electricity from a third party during such interruption, Seller shall be liable for the positive amount, if any, calculated as follows: the quantities so interrupted by Seller multiplied by [the then current retail market price (or the POLR price if Buyer was unable to purchase electricity from another retail electricity provider) minus, the contracted price from the applicable Price Sheet]. XIII. RESPONSIBILITY. 13.1 Buver Responsibilitv. Buyer assumes full responsibility for electric energy furnished to Buyer at and on Buyer's side of the Point of Delivery, and agrees, to the full extent allowed by law, to hold harmless Seller, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Seller Group"), from and against all claims, losses, expenses, damages, demands, judgments, causes of action, and suits of any kind (hereinafter collectively referred to "Claims"), including Claims for personal injury, death, or damages to property occurring on Buyer's side of the Point of Delivery and upon the Premise(s), arising out of or related to the electric power and energy and/or Buyer's performance under the Agreement. 13.2 Seller Responsibilitv. Buyer acknowledges and understands that (i) Seller never obtains physical possession or control of the electricity, (ii) Seller does not own nor have control of the electric transmission wires and equipment, and that they are owned and/or controlled by the TDSP, (iii) all meter reading, and repair services will be provided by employees or agents of . the TDSP, (iv) all responsibilities and liabilities of the TDSP are set forth in the tariff regulations as approved by the PUCT, and (v) the employees and agents of the TDSP are not employees or agents of Seller. Seller shall not have any obligation e e whatsoever to indemnify, defend, nor hold harmless Buyer, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Buyer Group"), against any Claims, on either side of the Point of Delivery, arising out of or in any way related to the electricity and/or the delivery thereof, including, without limitation, the actions of the TDSP and its employees and agents, except in the event, and only in the event, that such Claims are the direct result of the sole negligence and/or intentionally wrongful act of an employee, or agent under the exclusive control, of Seller. XIV. MISCELLANEOUS. _ 14.1 TDSPs. Buyer and Seller agree to all terms and conditions (adopted pursuant to statutes, regulatiQn~ or other lawful authority) of the TDSPs that provide electricity delivery services to the Premise(s) or other Buyer facilities, which may from time to time be amended, are made part of this Agreement. 14.2 Choice of Law: Venue. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCOROANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW PRINCIPLES WHICH OTHERWISE MIGHT BE APPLICABLE. 14.3 Assianment. In the event that Buyer_conveys legal title to all of the Premises to the same entity, Buyer may request from Seller the right to assign its rights and obligations under the Agreement to the new owner of the Premises, and in such event, Seller shall not unreasonably withhold its consent. Any purported assignment without Seller's prior written consent shall be null and void. Buyer shall not have any right whatsoever to assign this Agreement to any party that is not the owner of all of the Premises, and any purported assignment shall be null and void. Seller may assign this Agreement to another party, with the prior written consent of Buyer, which consent shall not be unreasonably withheld. Any purported assignment without Buyer's prior written consent shall be null and void. This Agreement shall inure to and be binding upon the Parties hereto, and their respective successors and assigns. 14.4 -Entiretv of Aareement. It is the intention of the Parties that the Agreement shall contain all terms, conditions, and protections in any way related to, or arising put of, the sale and purchase of the electricity, and supersedes all prior agreements, whether written or oral. It is also the intention of the Parties to agree to terms of service different than those that would otherwise apply under the Substantive Rules of the Public Utility Commission of Texas "Customer Protection Rules for Retail Electric Service", Sections 25.471 - 25.485, and 25.491 - 25.492. The Parties expressly acknowledge that certain terms, conditions, and protections addressed in such sections 25.472 - 25.485, and 25.491 - 25.492 may not be provided for or referred to in this Agreement, and, in such event, it is the intent of the Parties that such terms, conditions, and protections are not applicable to the Parties. Neither Party may assert any claim that any term, condition, and/or protection contained in Sections 25.472 - 25.485 and 25.491 - 25.492 of the Rules is inconsistent with any term, condition, and/or protection contained in the Agreement and, therefore, applies to the Parties. This Agreement may not be modified or amended except in writing, duly executed by the Parties hereto. Buyer warrants that the information supplied by it pursuant to this Agreement is true and shall remain so throughout the term of the Agreement unless varied by agreement. 14.5 Waiver of Riahts. A waiver by either Party of any breach of this Agreement, or the failure of either Party to enforce any of the terms and provisions of this Agreement, will not in any way affect, limit or waive that Party's right to enforce and compel strict compliance with the same or other terms or provisions of this Agreement. 14.6 Third Partv Riahts. Nothing in this Agreement shall create, or be construed as creating, any express or implied rights in any person or entity other than the Parties. 14.7 Survival. No termination or cancellation of this Agreement will relieve either Party of any obligations under this Agreement that by their nature survive such termination or cancellation, including, but not limited to, all warranties and obligations of indemnity. 14.8 Further Assurances. Buyer and Seller agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by the other Party which are not inconsistent with the provisions of this Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. 14.9 Distribution System. Distribution System herein shall mean any system for the distribution of electricity through which the electricity to be provided by Seller to Buyer is provided or passed to the Premise(s). Seller's obligations under this Agreement are subject to the maximum capacity and any other design feature of Buyer's Premise or Connection. Buyer shall contact Seller in accordance with all applicable legal requirements, and otherwise reasonably in advance, if Buyer proposes to make any significant change to Buyer's connection, electric lines or electrical equipment, install or operate generating equipment or do anything else that could affect the Distribution System or require alterations to Buyer's Connection. Each of the Parties undertakes to comply with Buyer's TDSP's Tariff for Distribution Service~ 14.10 Deliverv of Electricitv. Seller does not guarantee against irregularities or interruptions, it being understood that occasional irregularities and interruptions by the TDSP may occur. Buyer is responsible for installing and maintaining protective devices as recommended or required by the then current edition of the National Electric Code and other such e e devices as are necessary to protect equipment or process during irregular or interrupted service including, but not limited to voltage and wave form irregularities. 14.11 -Confidentiality. Seller acknowledges that Buyer is a governmental body that is subject to public information laws, including Chapter 552 of the Texas Government Code, which requires Buyer to release any information that is defined as or deemed to be public (the "Public Information Statutes"). Subject to any Public Information Statute or related order, rule or regulation requiring disclosure, Seller and Buyer agree to keep all terms and provisions of this Agreement confidential and not _ to disclose the terms of the same to any third parties; provided, however, each Party shall have the right to make such disclosures, if any, to governmental agencies and to its own agents, attorneys, auditors, accountants and shareholders as may be reasonably necessary. If disclosure is sought through process of a court, or a state or fecferal regulatory agency, the Party from whom the disclosure is sought shall resist disclosure through all reasonable means and shall immediately notify the other Party to allow it the opportunity to participate in such proceedings. 14.12 Resale of Seller's Electric Service. Buyer may not use supply of electricity provided by Seller except for the purpose specified in the Price Sheet under which Buyer receives supply of electricity. Buyer may not resell or otherwise dispose of supply of electricity unless as provided by statute or as specifically provided for in the Price Sheet. 14.13 Authorization. At such time as executed Offer and Price Sheet(s) are attached hereto, Buyer authorizes Seller to become Buyer's new retail electric provider in place of Buyer's current retail electric provider for the duration of the Agreement Term set forth in the Offer. Buyer authorizes Seller to act as Buyer's agent to effect the change, and Buyer directs its current retail electric provider to work with Seller to make this change happen. Buyer represents to Seller that Buyer is legally authorized to change the retail electric provider for all of the Premises. 14.14 Severability. If any portion of this Agreement, or application thereof to any person or circumstance, shall be held legally invalid, the remainder snail not be affected and shall be valid and enforced to the fullest extent permitted by law or equity. 14.15 Aooreoator Fees. Seller shall bill and collect from Buyer for HGAC Energy Purchasing Corporation ("HGAC") Aggregation Fees with respect to the purchase of Electricity under these Terms and Conditions ("Aggregation Fees"). Seller_ shall remit all Aggregation Fee collections received during each calendar month to HGAC on or before the twentieth (20th) Business Day of the following calendar month. Payments received from Buyer shall be deemed to be payments of Seller and TDSP charges then due, then of the Aggregation Fee. 14.16 Aooreoator Review. Buyer understands and acknowledges that any deviations from the standard Terms and Conditions for Supply of Electricity negotiated by HGAC on behalf of Buyer shall be subject to the prior review and consent of the HGAC. 14.17 Buyer is a Member of the HGAC Energy Purchasing Corporation. Seller is basing the indicative price on the attached price sheet upon assumptions as to the aggregated load and associated load factor of all Members of the Corporation. A condition precedent to the effectiveness of this Agreement is satisfaction of certain load and load factor criteria as agreed to between Seller and the HGAC Energy Purchasing Corporation. In the event that such criteria, as established in Section 1.b of the Agreement between H-GAC Energy Purchasing Corporation and TXU Energy Services, are not satisfied, then Seller shall not sign this Agreement and it shall be null and void ab initio. 14.18 Buyer shall notify seller of any ESls that have any significant load shifting- capabilities so Seller may offer multipart pricing for that Premise. The Parties have signed this Terms{ and Conditions for Supply of Electricity document, acknowledging their agreement to its provisions as of ~ 1- '1/ ,200L ' c /"/1 ();= LA f'JP!e / E By: a~ T. \\~ Name: !? () b~ -r: lirrertL Title: e..., ~ J1 a n tl. 5 .fb( Date: I i/~/ () I "Buyer" TXU ENERGY SERVICES COMPANY U~ /$/2-r'fifttl 7 Name: ~[)n A P. \l'Jc(J' .'L 5e{\'.Oi ~;\P(~r /2 - //-cJ( By: Title: Date: "Seller" Account 1-4QV2 City of La Porte Plan ID 1-8CGC7 Est. Load Factor: 53.1% Plan Type: Flat Flat Contract kWh: 19,012,428 TeU Type: TeU Contract kWh:Period 1: 19,012,428 Period 2 Period 3: Period 4: - - TOSP: REL TO e ~ . I l;3'(. ! ; I'd':; I .. - . 10089010016113 City of La Porte HGAC 10428 W MAIN ST La Porte HOUSTON 9111 N 90173100 02 016113901732 TX 77571 10089010016113 City of La Porte HGAC 10341 W MAIN ST La Porte HOUSTON 9111 N 90400100 02 016113904008 TX 77571 10089010016114 City of La Porte HGAC 10340 W MAIN ST La Porte HOUSTON 9111 N 10500100 02 016114105001 TX 77571 _089010016114 City of La Porte HGAC 10200 W MAIN ST La Porte HOUSTON 9111 N 600100 02 016114306002 TX 77571 10089010016114 City of La Porte HGAC 10247 W MAIN ST La Porte HOUSTON 9111 N 40069100 02 016114400698 TX 77571 10089010016117 City of La Porte HGAC 10220 HILLRIDGE La Porte HOUSTON 9111 N 39370100 RD 02 016117393701 TX 77571 Report Generated for JPARKER on 1/15/2002 Contract Start Date 01/01/02 Contract End Date: 12/31/03 Primary Term: 24 TeU Total kWh 19,012,428 - - - I I ,~, _ ,,,,-.,,, .."- <-- ." ~I, , " "L. N N ERCOT 20 N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT 134 Page 1 of 11 10089010016117 City of La Porte HGAC 10216 HILLRIDGE La Porte 39380100 RD 016117393804 TX 77571 10089010016117 City of La Porte HGAC 10215 HILLRIDGE La Porte 89495100 RD 016117894951 TX 77571 10089010016117 City of La Porte HGAC 10211 HILLRIDGE La Porte 89500100 RD 016117895002 TX 77571 10089010036120 City of La Porte HGAC 1050 ROBINSON La Porte 91000100 RD 036120910002 TX 77571 '089010036124 City of La Porte HGAC 10502 N P La Porte 7900100 036124279008 TX 77571 10089010036124 City of La Porte HGAC 10105 N L ST La Porte 32010100 036124320101 TX 77571 10089010036124 City of La Porte HGAC 10110NLST La Porte 46140100 036124461402 TX 77571 10089010036124 City of La Porte HGAC 10428 N L ST La Porte 48795100 036124487952 TX 77571 10089010096233 City of La Porte HGAC 10229 FAIRMONT La Porte 32750100 PKY 1 096233327501 TX 77571 .089010216322 City of La Porte HGAC 105 N La Porte 930100 BROADWAY ST 216322629308 TX 77571 10089010238001 City of La Porte HGAC 10210 N P La Porte 96680100 238001966801 TX 77571 10089010238009 City of La Porte HGAC 10100 N P La Porte 99510100 238009995101 TX 77571 Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT 16 N N ERCOT N N ERCOT 64 N N ERCOT N N ERCOT 8 N N ERCOT N N ERCOT 25 N N ERCOT N N ERCOT 35 N N ERCOT 192 N N ERCOT 17 N N ERCOT 120 - - Page 2 of 11 N 10089010238029 City of La Porte HGAC 101 N La Porte 85890100 BLACKWELL ST 238029858901 TX 77571 10089010238032 City of La Porte HGAC 10431 W MAIN ST La Porte 62330100 A 238032623301 TX 77571 10089010238032 City of La Porte HGAC 10300 N P La Porte 95450100 238032954501 TX 77571 10089010238035 City of La Porte HGAG 103281/2 W MAIN LA PORTE 36710100 ST 238035367101 TX 77571 t89010238065 City of La Porte HGAC 10216 HILLRIDGE La Porte 5620100 RDA 238065556201 TX 77571 10089010238084 City of La Porte HGAC 10131 W MAIN ST La Porte 61510100 A 238084615101 TX 77571 10089010238103 City of La Porte HGAC 1001 S 4TH La Porte 89300100 238103893001 TX 77571 10089010016113 City of La Porte HGAC 11903 W MAIN ST La Porte 70009100 016113700092 TX 77571 10089010016113 City of La Porte HGAC 125 S 25TH La Porte 70025100 016113700251 TX 77571 .89010016113 City of La Porte HGAC 11850 N D ST La Porte 50100 016113743501 TX 77571 10089010016113 City of La Porte HGAC 10715 W MAIN ST La Porte 88049100 016113880491 TX 77571 10089010036120 City of La Porte HGAC 11033 HOUSTON La Porte 86334100 DR 036120863348 TX 77571 - - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT N N ERGOT N N ERCOT 67 N N ERCOT N N ERGOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT 288 N N ERCOT N N ERCOT 32 N N ERCOT - - Page 3 of 11 N 10089010036123 City of La Porte HGAC 11550 N P La Porte 02600100 036123026002 TX 77571 10089010036123 City of La Porte HGAC 10530 N P La Porte 46350100 036123463508 TX 77571 10089010036124 City of La Porte HGAC 10825 N L ST La Porte 74165100 036124741652 TX 77571 10089010036124 City of La Porte HGAC 11850 N L ST La Porte 91300100 036124913002 TX 77571 ~89010036124 City of La Porte HGAC 11540 N L ST La Porte 1900100 036124919002 TX 77571 10089010036125 City of La Porte HGAC 11240 N L ST La Porte 06700100 036125067002 TX 77571 10089010036125 City of La Porte HGAC 10822 N L ST La Porte 32050100 036125320501 TX 77571 10089010036125 City of La Porte HGAC 11416 N AVENUE La Porte 62000100 H 036125620002 TX 77571 10089010116304 City of La Porte HGAC 1231 S 8TH La Porte 61740100 116304617408 TX 77571 .89010116304 City of La Porte HGAC 1301 S 4TH A La Porte 10100 116304621108 TX 77571 10089010116304 City of La Porte HGAC 1301 S 4TH La Porte 62115100 116304621158 TX 77571 10089010206318 City of La Porte HGAC 111 S 4TH RR La Porte 84025100 206318840251 TX 77571 - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT 12 N N ERCOT N N ERCOT N N ERCOT 17 N N ERCOT 557 N N ERCOT - - Page 4 of 11 N 10089010206318 City of La Porte HGAC 120 S 2ND La Porte 91850100 206318918502 TX 77571 10089010206318 City of La Porte HGAC 128 S 2ND La Porte 91870100 206318918701 TX 77571 10089010238002 City of La Porte HGAC 12201 N CST La Porte 08950100 238002089501 TX 77571 10089010238022 City of La Porte HGAC 12203 N CST La Porte 29510100 238022295101 TX 77571 .89010238029 City of La Porte HGAC 12000 N L ST La Porte 750100 238029467501 TX 77571 10089010238039 City of La Porte HGAC 10530 N P La Porte 57830100 238039578301 TX 77571 10089010238081 City of La Porte HGAC 1300 N La Porte 39360100 SA YSHORE 238081393601 TX 77571 10089010238097 City of La Porte HGAC 111 S 2ND La Porte 77440100 238097774401 TX 77571 10089010238017 City of La Porte HGAC 1131 S 1ST La Porte 89320100 238017893202 TX 77571 .89010016112 City of La Porte HGAC 1309 N 16TH ST La Porte 00100 016112635001 TX 77571 10089010016113 City of La Porte HGAC 201 1/2 N 16TH La Porte 50996100 ST 016113509961 TX 77571 10089010016113 City of La Porte HGAC 2963 23RD La Porte 64900100 016113649008 TX 77571 - - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT 5 N N ERCOT 48 N N ERCOT 25 N N ERCOT 45 N N ERCOT N N ERCOT 54 N N ERCOT N N ERCOT N N ERCOT 90 N N ERCOT N N ERCOT N N ERCOT 34 - - Page 5 of 11 N 10089010036124 City of La Porte HGAC 1523 LOMAX La Porte 28200100 SCHOOL RD 036124282002 TX 77571 10089010036124 City of La Porte HGAC 1525 LOMAX La Porte 28265100 SCHOOL RD 036124282652 TX 77571 10089010036125 City of La Porte HGAC 2004 LOMAX La Porte 33800100 SCHOOL RD 036125338001 TX 77571 10089010036126 City of La Porte HGAC 1724 N HIGHWAY La Porte 24200100 146 036126242008 TX 77571 .89010116303 City of La Porte HGAC 2601 S La Porte 40000100 BROADWAY ST 116303400001 TX 77571 10089010116303 City of La Porte HGAC 1900 S R ST C La Porte 75370100 116303753701 TX 77571 10089010116304 City of La Porte HGAC 200WP La Porte 62800100 116304628008 TX 77571 10089010206319 City of La Porte HGAC 2091/2 E G ST La Porte 02585100 206319025851 TX 77571 10089010238001 City of La Porte HGAC 200 S R ST La Porte 15750100 238001157501 TX 77571 .089010238002 City of La Porte HGAC 201 S R ST La Porte 950100 238002359501 TX 77571 10089010238004 City of La Porte HGAC 301 La Porte 01110100 FARRINGTON 238004011101 TX 77571 10089010238018 City of La Porte HGAC 1609 LOMAX La Porte 40470100 SCHOOL RD A 238018404701 TX 77571 - - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT 4 N N ERCOT 28 N N ERCOT 30 N N ERCOT N N ERCOT N N ERCOT 128 N N ERCOT 19 N N ERCOT 25 N N ERCOT 68 N N ERCOT 56 N N ERCOT N N ERCOT - - Page 6 of 11 N 10089010238019 City of La Porte HGAC 1322 S La Porte 42710100 BROADWAY ST 238019427101 TX 77571 10089010238035 City of La Porte HGAC 16251/2 W MAIN La Porte 14640100 ST 238035146401 TX 77571 10089010238036 City of La Porte HGAC 19251/2 W MAIN La Porte 98500100 ST 238036985001 TX 77571 10089010238053 City of La Porte HGAC 1302 S La Porte 40470100 BROADWAY ST 238053404702 TX 77571 _89010238056 City of La Porte HGAC 201 WHARTON La Porte 07840100 WEEMS BLVD 238056078401 TX 77571 10089010238055 City of La Porte HGAC 301 N 5TH La Porte 21310100 238055213101 TX 77571 10089010016117 City of La Porte HGAC 3540 La Porte 35850100 FARRINGTON 016117358531 TX 77571 10089010016117 City of La Porte HGAC 3550 La Porte 35860100 FARRINGTON 016117358602 TX 77571 10089010096233 City of La Porte HGAC 3822 La Porte 30793100 COTTONWOOD 096233307931 DR TX 77571 .89010106241 City of La Porte HGAC 3700 SUNRISE La Porte 00100 DR 106241263005 TX 77571 10089010106301 City of La Porte HGAC 3215 BAYOU DR La Porte 44325100 RR 106301443254 TX 77571 10089010116303 Gity of La Porte HGAG 3030 La Porte 06901100 HUMPHREVILLE 116303069019 ST TX 77571 - - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT 297 N N ERCOT N N ERCOT N N ERGOT 29 N N ERGOT N N ERGOT N N ERGOT 230 N N ERCOT N N ERGOT 55 N N ERGOT N N ERGOT 18 N N ERGOT 92 - - Page 7 of 11 N 10089010206319 City of La Porte HGAC 326 SAN La Porte 01815100 JACINTO DR 206319018151 TX 77571 10089010206945 City of La Porte HGAC 3326 SOMERTON La Porte 31475100 DR 206945314754 TX 77571 10089010216322 City of La Porte HGAC 332 N 4TH La Porte 86390100 216322863901 TX 77571 10089010238007 City of La Porte HGAC 322 N 4TH La Porte 67500100 238007675002 TX 77571 '089010238029 City of La Porte HGAC 3540 La Porte 0970100 FARRINGTON B 238029809701 TX 77571 10089010238039 City of La Porte HGAC 3324 SOMERTON La Porte 58060100 DR 238039580601 TX 77571 10089010238040 City of La Porte HGAC 3231 La Porte 69310100 UNDERWOOD 238040693101 RDA TX 77571 10089010238044 City of La Porte HGAC 3406 La Porte 25040100 UNDERWOOD 238044250401 RD TX 77571 10089010238044 City of La Porte HGAC 31221/2 La Porte 27550100 UNDERWOOD 238044275501 RD TX 77571 .89010206945 City of La Porte HGAC 3717 LUELLA La Porte 00100 BLVD 206945268009 TX 77571 10089010026118 City of La Porte HGAC 3209 La Porte 74030100 UNDERWOOD 026118740301 RD TX 77571 10089010238085 City of La Porte HGAC 701 LITTLE La Porte 58390100 CEDAR BAYOU 238085583901 DRA TX 77571 - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT N N ERCOT 10 N N ERCOT 38 N N ERCOT 40 N N ERCOT 101 N N ERCOT N N ERCOT 22 N N ERCOT N N ERCOT N N ERCOT 128 N N ERCOT N N ERCOT - - Page 8 of 11 N 10089010026118 City of La Porte HGAC 54051/2 STONE La Porte 77277100 CREEK DR 026118772771 TX 77571 10089010026118 City of La Porte HGAC 9800 N AVENUE La Porte 79580100 H 026118795808 TX 77571 10089010036124 City of La Porte HGAC 9820 N P La Porte 13010100 036124130108 TX 77571 10089010106241 City of La Porte HGAC 3840 OLD La Porte 15900100 HIGHWAY 146 106241159005 TX 77571 ~089010116303 City of La Porte HGAC 702 MC CASE RD La Porte 6205100 116303262051 TX 77571 10089010116303 City of La Porte HGAC 775 S R ST La Porte 75950100 116303759501 TX 77571 10089010116303 City of La Porte HGAC 528N La Porte 81650100 SAYSHORE 116303816503 TX 77571 10089010116304 City of La Porte HGAC 430 W FAIRMONT La Porte 36020100 PKY RR 116304360208 TX 77571 10089010116304 City of La Porte HGAC 604 W FAIRMONT La Porte 48900100 PKY 116304489008 TX 77571 .89010116304 City of La Porte HGAC 604 1/2 W La Porte 05100 FAIRMONT PKY 116304489058 TX 77571 10089010206319 City of La Porte HGAC 526 SAN La Porte 02285100 JACINTO DR 206319022851 TX 77571 10089010206945 City of La Porte HGAC 8610 SANDRIDGE La Porte 31320100 RD 206945313202 TX 77571 - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT 160 N N ERCOT 192 N N ERCOT 173 N N ERCOT N N ERCOT 36 N N ERCOT 144 - - Page 9 of 11 N 10089010206945 City of La Porte HGAC 9209 BELFAST La Porte 38598100 RD 206945385982 TX 77571 10089010216322 City of La Porte HGAC 531 N 5TH La Porte 94720100 216322947208 TX 77571 10089010238000 City of La Porte HGAC 600 LITTLE La Porte 97690100 CEDAR BAYOU 238000976901 DR TX 77571 10089010238005 City of La Porte HGAC 617 La Porte 43240100 SHOREACRES 238005432401 BLVD TX 77571 '089010238035 City of La Porte HGAC 97201/2 W MAIN La Porte 6750100 ST 238035367502 TX 77571 10089010238038 City of La Porte HGAC 701 1/2 VALLEY La Porte 77050100 BROOK DR 238038770501 TX 77571 10089010238039 City of La Porte HGAC 602 E FAIRMONT La Porte 29540100 PKY 238039295401 TX 77571 10089010238058 City of La Porte HGAC 812 N La Porte 09060100 BAYSHOREA 238058090601 TX 77571 10089010206319 City of La Porte HGAC 618 SAN La Porte 02385100 JACINTO DR 206319023851 TX 77571 .89010238033 City of La Porte HGAC 386 MYRTLE La Porte 50100 CREEK DR 238033841501 TX 77571 10089010238033 City of La Porte HGAC 607 MYRTLE La Porte 45650100 CREEK DR 238033456501 TX 77571 10089010016118 City of La Porte HGAC 99971/2 W MAIN La Porte 05290100 ST 016118052902 TX 77571 - - Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N N N N N N N N N ERCOT N N ERCOT N N ERCOT 355 N N ERCOT 13 N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT 52 N N ERCOT N N ERCOT N N ERCOT - - Page 10 of 11 N 10089010036124 City of La Porte HGAC 9830 N L ST La Porte 40025100 036124400252 TX 77571 , 10089010036124 City of La Porte HGAC 9830 N L ST A La Porte 40030100 036124400301 TX 77571 10089010238032 City of La Porte HGAC 9901 W MAIN ST La Porte 62310100 A 238032623101 TX 77571 10089010238040 City of La Porte HGAC 9831 W MAIN ST La Porte 69280100 A 238040692801 TX 77571 .otaIS: # of Service Points: 118 e Report Generated for JPARKER on 1/15/2002 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 N N N N N ERCOT 36 N N ERCOT N N ERCOT N N ERCOT 20 Contract kW: 4,624 - Page 11 of 11 N Account :City of La Porte Plan # : 1-8CGC7 Monthly Contracted Usage in kWh Period Usage 1 Usage 2 Usage 3 01/01/02 823,419 02/01/02 733,187 e 03/01/02 660,933 04/01/02 735,480 05/01/02 783,356 06/01/02 787,652 07/01/02 918,390 08/01/02 887,126 09/01/02 877,996 10/01/02 779,117 11/01/02 730,482 12/01/02 790,595 e 01/01/03 819,417 02/01/03 733,056 03/01/03 659,315 04/01/03 738,196 05/01/03 774,622 06/01/03 794,103 07/01/03 919,932 08/01/03 877,691 09/01/03 888,895 - Report Generated for GPENDLEY on 11/17/2001 Usage 4 Contract Start Date: 01/01/02 Contract End Date: 12/31103 Total Usage 823,419 733,187 660,933 735,480 783,356 787,652 918,390 887,126 877,996 779,117 730,482 790,595 819,417 733,056 659,315 738,196 774,622 794,103 919,932 877,691 888.895 - Page 1 of 2 Account :City of La Porte 10/01/03 775,305 11/01/03 722,409 12/01/03 801,753 # of Periods: 24 e Total kWh: 19,012,428 e - Report Generated for GPENDLEY on 11/17/2001 Contract Start Date: 01/01/02 Contract End Date: 12/31/03 775,305 722,409 801,753 19.012,428 - Page 2 of 2 Plan # 1-8CGC7 \ \ e - TXU +xu Energy Services TERMS AND CONDiTIONS FOR SUPPLY OF ELECTRICITY These Terms and Conditions for the Supply of Electricity '("Terms"), together with any Offer for Supply of Electricity ("Offer") and any other attachments, exhibits or appendices (including, as appropriate, one or more Price Sheets) as may be hereafter agreed to by Buyer (the term Buyer includes its employees and/or agents as appropriate), and Seller (the term Seller includes its assignees and/or as appropriate its employees! agents and/or subcontractors), shall constitute the "Agreement" for the supply of electricity to the Premise(s) of Buyer set forth in Exhibit "A" attached hereto, Seller and Buyer may hereinafter be referred to individually as a "Party" and collectively as the "Parties". "Premise(s)" herein shall mean the designated (in Exhibit "A") property or facilities and associated metered account(s) identified by an Electric Service Identifier ("ESI"), which is a unique and permanent identifier assigned to each Premise(s), A "Price Sheet(s)" is a document(s) containing a description of the method for determining charges payable by Buyer to Seller for electricity supplied pursuant to this Agreement, for specified Premises and shall contain the Offer Price, A condition precedent for the effectiveness of ihe Agreement shall be the execution of a separate Offer, and agreement by the Parties on the terms contained in Exhibit "A" and the appropriate Price Sheet(s). 1. SUBJECT MATTER AND QUANTITY. Seller shall sell and cause delivery, and Buyer shall purchase and receive at the Point of Delivery, for use only at the Premise(s), Buyer's non-residential electricity requirements set forth On Exhibit "A" attached hereto. "TDSP" herein shall mean a transmission and/or distribution provider under the jurisdiction of the Public Utility Commission of Texas ("PUCT") that owns and maintains a transmission or distribution system for the delivery of energy; including a Municipally owned utility or Rural Electric Cooperative. "Point of Delivery" her,ein shall mean the point where TDSP's conductors are connected to Buyer's conductors at or near Buyer's Premises, II., (This Section has been deleted intentionally.] III. TERM. The "Agreement Term" shall be the time period, as referred to in the Offer, during which the prices contained in the Price Sheets are and shall remain in force, IV. AGREEMENT RENEW ALlPRICE RENEGOTIATION. If Buyer and Seller have not agreed to new pricing and terms prior to thirty calendar days before the expiration of the then current Offer, and Buyer has not arranged for electricity from another supplier prior to the expiration of such Offer, then, effective upon expiration of the Offer and until Buyer arranges for electricity with another supplier or under a new Offer with Seller, Seller agrees to sell and deliver and Buyer agrees to purchase and receive electricity under terms and prices of Seller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. "Standard List Price Offer" herein shall mean the Seller's price charged to customer's purchasing electricity without a valid Offer for the Supply of Electricity, The Standard List Price Offer may change from time to time at the discretion of Seller. I .1 ! V. CALCULATION AND PAYMENT OF CHARGES.' 5.1 Seller will invoice Buyer for electricity delivered to the Premise(s) during each monthly billing cycle of the Agreement Term, and for any other amounts due from Buyer to Seller hereunder, in accordance with the applicable Price Sheet, provided, however, in the event Buyer takes quantities of electricity in any month that are in excess of one hundred twenty percent (120.0%) of the aggregated quantities listed in Exhibit "A", Seller shall have the option to price such excess quantities at 105.0% of the then current retail market value. If Buyer, (provided such is not the result of a force majeure event), takes quantities of electricity in ,a month that are less than eighty percent (80.0%) of the aggregated quantities ,listed in Exhibit "A", in addition to paying for those quantities actually taken in accordance with the applicable Price Sheet, Buyer agrees to pay Seller the positive amount, if any, calculated as follows: (80.0% of the aggregated quantities on Exhibit "A" for the applicable month minus the aggregated quantities actually used by Buyer during the month, the "Shortfall Quantity") multiplied by (the contracted price from the applicable Price Sheet minus 95.0% of the then current retail market price for the Shortfall Quantity).5.2 If Buyer has more than one Premise, the monthly billing cycle inay vary for different Premises, and 'may not coincide with a calendar month. In the event that an interval demand recorder ("lOR") must be installed at any Premise, if such lOR has not been installed prior to the commencement of the Agreement Term, Seller reserves the right to calculate prices based upon the appropriate deemed load profile, as obtained by Seller from the PUCT, until such lOR can be installed. 5.3 Buyer shall pay'the invoiced amount on or before the due date specified in the Offer, and/or notify Seller within ten business days of the invoice date if Buyer disputes any part of the invoice together with Buyer's reasons for disputing the invoice (however, Buyer's payment of an invoice and/or failure to dispute an invoice by the due date, in and of itself, shall not constitute a waiver by Buyer of Buyer's right to contest later the correctness of such invoice), but the undisputed part shall remain due and payable. In the event that Buyer gives notice of such dispute, the Parties shall, for a period of thirty calendar days following Seller's receipt of that notice, pursue diligent, good faith efforts to resolve the dispute. If the Parties are unable to resolye a disputed invoice during that thirty day period, Seller may require, in the event it is subsequently determined that Buyer should pay Seller all or part of the disputed amount, that Buyer pay interest on such amount, at a rate equal to (i) one H-GAC Energy Purchasing Corporation Page 1 of 11 e e percent (I %) per month or (ii) the highest rate allowed by law, whichever is the lesser, from the date such payment was originally due until the same is paid. Following resolution of the dispute, any amount found payable (including interest) shall be paid within thirty calendar days. If Buyer fails to pay any amount due (including any disputed amount withheld which is subsequently found to have been payable), Seller may, at its option, pursue any or all of the following actions or remedies: (a) accrue interest on the unpaid portion at a rate equal to that described earlier in this paragraph, from the date such payment is due until the same is paid, or (b) transfer Buyer to the provider of last resort ("POLR"). POLR shall be defined as a retail electric provider that has been designated by the PUCT to provide a basic, standard retail service package to requesting or defaulting customers. 5.4 If Buyer notifies Seller in writing of ajustifiable concern regarding the accuracy of an invoice hereunder, Seller shall make available to Buyer during nonnal business hours the records in Seller's possession reasonably necessary for Buyer to verify the accuracy of its bill. Provided, however, neither Party may request any adjustment or correction of any statement or payment unless written notice of such request for adjustment or correction is furnished within twenty-four (24) months of the date of the statement or payment for which such adjustment or correction is requested. 5.5 If this Agreement is terminated for any reason (including where Buyer terminates in accordance with Section VII) and Buyer does not arrange for a new electricity supply agreement with Seller or another supplier, Seller, until Buyer arranges for a new electric supply agreement with Seller or another supplier, may (in addition to other remedies) charge Buyer for any electricity used at the Premise(s) after the effective date ofthe termination, and subject to these Tenns, at Seller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. This sub-clause shall survive termination of this Agreement. 5.6 Payments may be made by check, wire transfer, direct debit or electronic data interchange (on terms reasonably acceptable to both Parties), and notwithstanding anything to the contrary contained herein, must be received by the receiving Party on or before the dates specified in Article II of the Offer. The address to which payments are to be made shall be as set forth in the Offer. For Buyer to pay Seller other than by check, Buyer needs to obtain required information / agreements with Seller. If Buyer fails to pay the invoiced amount to Seller by the Due Date, and such amount is not disputed as provided in Section 5.3 the undisputed invoiced amount will accrue interest at the rate of 12% per year, and, in addition, Seller may pursue, but is not required to pursue, available legal remedies for collection of the unpaid invoice and late- payment interest charges, including termination of the Agreement in accordance with the procedures set forth in Article VII. 5.7 In the event Buyer ever takes electricity exceeding the Maximum kW for each Premise(s), each time it does so Buyer shall pay the Over Capacity Charges as stated in the applicable Price Sheet. "Maximum kW" for each Premise is set forth on Exhibit "A", and shall be recorded at the TDSP Point of Delivery. 5.8 Buyer agrees that it shall abide and be bound by the Agreement through the end of the Agreement Term and shall not, during the Agreement Term, claim any right to pricing based upon the Price to Beat. "Price to Beat" shall mean a price for electricity, as determined pursuant to the Public Utility Regulatory Act, Section 39.202, charged by an affiliated retail electric provider to eligible customers. VI. METERING EQUIPMENT. 6.1 The supply of electricity to Buyer at the TDSP Delivery Point(s) shall be measured by Metering Equipment. "Metering Equipment" herein shall mean any and all equipment required for the measurement of demand, energy, reactive demand or reactive energy and the times during which said demand or energy is consumed. Unless the accuracy of the Metering Equipment is disputed by notice given by either Party to the other the Metering Equipment shall be deemed to be accurate. If notice is given (unless otherwise agreed) the Metering Equipment shall be examined within a reasonable period by the TDSP in accordance with the applicable Substantive Rules of the PUCT. If such test finds that the inaccuracy of the registration of kWh or kW at normal loads exceeds that allowed by ANSI standard C.12, suitable adjustment shall be made in the accounts rendered by Seller, and, within a reasonable period following that determination, the Metering Equipment shall be re-calibrated or replaced by the entity that installs, validates, registers, and maintains the physical meter required on a Premise to measure customer usage. If such test finds the Metering Equipment to be accurate within the said limits, the Metering Equipment shall be deemed to be accurate and the cost of moving, testing, and replacing the Metering Equipment shall be paid by the Party who issued the notice. If it is discovered that any reading of the Metering Equipment or translation of the readings into charges have been incorrect then the amount of money due to and from Seller shall be paid forthwith. 6.2 If appropriate meter reading personnel cannot gain access to read the Metering Equipment, or the Metering Equipment fails to register correctly the amount of electricity supplied, or the readings are not communicated to Seller in time for whatever reason, Seller shall reasonably estimate the quantity of the electricity consumed and Buyer shall pay the charges for the estimated amounts subject to any adjustments which may be necessary following the reading. Buyer shall notify Seller of any dispute or query regarding the Metering Equipment made by the TDSP. Seller is not responsible for damage to the Metering Equipment unless caused by Seller's negligence. VII. TERMINA nON OF AGREEMENT. 7.1 A material breach of this Agreement includes: (a) the failure of either Party to make any payment due to the other Party pursuant to the terms hereof, provided, however, that notwithstanding the foregoing or anything else to the contrary in this Agreement, Supplier may not terminate this Agreement for non-payment by Buyer of an undisputed invoiced amount unless the undisputed invoiced amount remains unpaid for thirty (30) days after the due date; (b) the failure of a Party to comply with any other material term of this Agreement; (c) a Party H-GAC Energy Purchasing Corporation Page 2 of 11 e e becomes or declares that it is insolvent or bankrupt, or becomes or declares that it is the subject of any proceedings, or is taking any action whatsoever, relating to its bankruptcy, liquidation or insolvency, or is not generally paying its debts as they become due, (d) a Party fails to comply with any federal, state or local law, regulation, rule or order that causes a material adverse affect upon this Agreement, either Party or either Party's performance of its obligations described in this Agreement; (e) if Buyer enters into another electricity supply agreement for any Premise(s) with another retail energy provider that covers any period during the Agreement Term; or (f) if Buyer, except as provided in paragraphs 7.2 and 14.3 below, sells, leases, closes or otherwise conveys or assigns any Premise(s) in which the electricity sold hereunder is utilized. If either Party commits a material breach of this Agreement, the non-breaching Party shall give written notice to the breaching Party that describes the breach in reasonable detail ("Original Notice"). The non-breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, at law, or in equity, terminate this Agreement (i) by providing an additional notice if the breaching Party does not pay all amounts due and owing set forth in the Original Notice within ten calendar days of the date of the Original Notice, or (ii) effective immediately in the Original Notice in the event the breach pertains to (c), (e), or (f) in this paragraph above, or (iii) by providing an additional notice if the breaching Party fails to cure any breach other than one related to (a), (c), (e), or (f) in this paragraph above within thirty calendar days of the date of the Original Notice. 7.2 (a) In the event Buyer sells, closes, or leases a particular Premise, without selling, closing, or leasing all of the Premises, Buyer shall have the right to delete that particular Premise and the quantities of electricity attributable to that Premise through the end of the Agreement Term (the "Liquidated Quantities") from this Agreement without terminating the Agreement (a "Premise Buyout Option"). If Buyer desires to exercise a Premise Buyout Option with regard to a Premise, Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of a Premise Buyout Option, in the event a new owner of the applicable Premise (i) is willing to sign a new contract with Seller upon the same terms and conditions as Buyer's contract, (ii) is deemed creditworthy by Seller, and (iii) the new owner and Seller can legally enter into such a contract in accordance with the rules and regulations of the PUeT, then the Premise will be deleted from this Agreement and neither Party will owe any compensation to the other. In the event that the new owner (i) is unwilling to sign a contract with Seller upon the same terms and conditions, (ii) is not reasonably deemed creditworthy by Seller, or (iii) the new owner and Seller cannot legally enter into the contract, then Buyer agrees to pay Seller the positive amount, if any, calculated as follows: the Liquidated Quantities multiplied by (the price that Buyer would have paid for the Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail market price). Buyer shall pay such amount, if any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be modified to reflect the deletion of such Premise and its Liquidated Quantities, and all other terms and conditions of this Agreement shall remain in full force and effect with respect to the remaining Premises. (b) In the event Buyer reduces its operations at a Premise, Buyer shall have the right to delete the quantities of electricity attributable to the reduction in operations at such Premise from the effective date of the reduction through the end of the Agreement Term (the "Reduced Operations Liquidated Quantities") from this Agreement without terminating the Agreement. If Buyer desires to exercise such right with regard to a Premise, Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of such right, Buyer agtees to pay Seller the positive amount, if any, calculated as follows: the Reduced Operations Liquidated Quantities multiplied by (the price that Buyer would have paid for the Reduced Operations Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail market price for the liquidated quantities). Buyer shall pay such amount, if any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be modified to reflect the deletion of the liquidated quantities, and all other terms and conditions of this Agreement shall remain in full force and effect. (c) Both Parties will work in good faith during the Agreement Term to reasonably accommodate and assist Buyer with the management of its electricity needs at the Premises. Since it is not possible to foresee the evolution of the deregulated power industry in Texas, various reasonable options for Buyer to achieve this are evolving and under development by Seller. For example, if Buyer desires to contract for additional electricity, both Parties will work in good faith to mutually agree upon the terms and conditions that are economically viable to both Parties. However, notwithstanding the previous language, nothing contained herein shall be construed as to deny or diminish the economic benefit of this Agreement to either Party, and neither Party shall be under any obligation whatsoever to agree to a modification that would have such result. 7.3 (a) In the event that this Agreement is terminated by Seller pursuant to Section 7.I...the Parties agree, that in addition to all amounts Buyer may owe Seller prior to the termination, Seller's damages shall be the positive amount, if any, calculated as follows: (all remaining unpurchased quantities of electricity reflected on Exhibit "A" through the end of the Agreement Term) multiplied by (the price that Buyer would have paid for the unpurchased quantities through the end of the Agreement Term according to the applicable Price Sheet, minus the current retail market price for the unpurchased quantities at the time of termination) plus (all reasonable costs and expenses incurred by Seller). Such amount shall be immediately due and payable within thirty calendar days following such termination. The current retail market price in this instance shall mean the price that Seller would reasonably be able to obtain from a bona.fide third party if entering into a contract with another customer for the unpurchased quantities, and for the remaining term after the Early Termination Date through the end of the Agreement Term. Seller shall have a duty to use commercially reasonable efforts to mitigate its damages. (b) In the event thai this Agreement is terminated by Buyer pursuant to Section 7.I...the Parties agree, that in addition to all amounts Seller may owe Buyer prior to the termination, Buyer's damages shall be the positive amount, if any, calculated as follows: (all remaining un purchased quantities of electricity reflected on Exhibit "A" through the end of the Agreement Term) multiplied by (the current retail market price for the unpurchased quantities at the time of termination, minus the price that Buyer would have paid for the unpurchased quantities through the end of the Agreement Term according to the applicable Price Sheet) plus (all reasonable costs and expenses incurred by Buyer). H-GAC Energy Purchasing Corporation Page 3 of 11 e e Such amount shall be immediately due and payable within thirty calendar days following such termination. The current retail market price in this instance shall mean the price Buyer would have to pay if entering into a contract with another Retail Electric Provider ("REP") for the same quantities, and for the remaining term after the Early Termination Date through the end of the Agreement Term. The price offered by the POLR, or any REP's Standard List Price Offer, shall not be used to calculate Buyer's damages. Buyer shall have a duty to use commercially reasonable efforts to mitigate its damages. 7.4 Buyer may terminate this Agreement, on a prospective basis, in the event of non-appropriation of funding for this Agreement by Buyer's Governing Body. Buyer agrees, to the full extent allowed by Texas law, that if any funds are appropriated for electricity costs, such funds shall be applied first to the cost of electricity provided pursuant to this Agreement. Buyer agrees to notify the REP in writing of such non- appropriation at the earliest practicable time subsequent to the failure to appropriate, and as of Buyer's termination date, Seller shall have no further duty to supply Electricity to Buyer and shall move service for the Accounts to the POLR as established by the PUCT on the date of termination for non-appropriation. VIII. FORCE MAJEURE. If either Party is unable to perform its obligations in whole or in part due to an event of force majeure as defined herein, then the obligations of the affected Party shall be suspended to the extent made necessary by such event. The term "force majeure" means any cause not within the control of the Party claiming relief, including, but not limited to, Acts of God, including magnetic disturbances but not including extremes of temperature alone; arrests, orders, directives, restraints and requirements of the government and governmental agencies, either federal or state (excluding Buyer), civil or military; civil disorder; strikes or labor disputes; failure, repair or change of or obstruction in electric power lines, equipment or machinery; the failure of the TDSP to receive, transport, or deliver, or otherwise perform, unless due to the failure of the Party claiming force majeure to perform such Party's obligations hereunder; an event of force majeure of Seller's supplier(s) or with Buyer's electrical equipment at Buyer's Premises; or any other cause which by the exercise of reasonable diligence such Party could not have prevented or is unable to overcome. Any such event of force majeure shall, so far as possible, be remedied with all reasonable dispatch. It is understood and agreed that the settlement of strikes or lockouts will be entirely within the discretion of the Party having the difficulty, and that the above requirement of the use of diligence in restoring normal operating conditions will not require the settlement of strikes or lockouts by acceding to the terms of the opposing party when such course is inadvisable in the discretion of the Party having the difficulty. Neither financial distress nor the inability of either Party to make a profit or avoid a financial loss shall be deemed a force majeure event, nor shall (i) changes in the market prices of fuel, energy, or electricity, or (ii) a Party's financial inability to perform its obligations under this Agreement, constitute an event of Force Majeure hereunder. IX. WARRANTIES AND LIMITATIONS OF LIABILITIES. 9.1 Seller hereby warrants to Buyer that at the time of delivery of electricity hereunder it will have good title and/or the right to sell such electricity, and that such electricity will be free and clear of all liens and adverse claims. Title will pass to Buyer at the TDSP Point of Delivery. EXCEPT AS PROVIDED FOR IN THE FIRST SENTENCE OF THIS PARAGRAPH, SELLER EXPRESSLY DISCLAIMS AND MAKES NO WARRANTIES, WHETHER WRITTEN OR VERBAL, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY EXPRESS, IMPLIED, OR STATUTORY WARRANTIES OF MERCHANTABILITY OR FI1NESS FOR A PARTICULAR PURPOSE. 9.2 Unless otherwise expressly provided herein, any liability under this Agreement will be limited to direct actual damages as the sole and exclusive remedy, and all other remedies or damages at law or in equity are waived. Neither Party will be liable for consequential, incidental, punitive, exemplary or indirect damages, including lost profits or other business interruption damages, whether in tort or contract, under any indemnity provisions or otherwise in connection with this Agreement. The limitations imposed on remedies and damage measurement will be without regard to cause, including negligence of any Party, whether sole, joint, concurrent, active or passive; provided no such limitation shall apply to damages resulting from the willful misconduct or gross negligence of any Party. X. NOTICES. All notices required or permitted under this Agreement shall be in writing and shall be deemed to be delivered when deposited in the United States mail (first class, registered or certified), postage prepaid, when deposited with an overnight delivery service, prepaid to the applicable Buyer's address shown in the attached Exhibit "A", and Seller's address as shown in the Offer, or to such address as either Party may from time to time designate as the address, or in the case of hand delivery, when delivered to a representative of either Party by a representative of the other Party; provided, however, except for payments of amounts due hereunder, either Party may provide such items hereunder by electronic mail or facsimile to the other Party at the applicable telephone number shown on the current Offer, and further provided, the original copy of such item shall be sent to the other Party within three business days thereafter. XI. APPLICABLE LAW AND REGULATIONS. 11.1 This Agreement is subject to all applicable laws, regulations, rules and orders. 11.2 In the event ajudicial decision, order, new law or regulation, or a change in any law or regulation, requires a change in the method by which prices are calculated under this Agreement, or materially and directly affects a Party's ability to perform its obligations hereunder, then the Party that is negatively affected shall have the right to notify the other Party, within thirty calendar days after becoming aware of such detrimental change. The Parties shall attempt to negotiate a modification to the terms of this Agreement so as to mitigate the impact of the event. If, after twenty calendar days beyond the date of notice, the Parties have been unable to negotiate a mutually satisfactory modification to the terms of this Agreement, either Party shall have the right to terminate this Agreement upon ten calendar days prior written notice to the H-GAC Energy Purchasing Corporation Page 4 of 11 e e other Party. If such right to terminate is not exercised within forty-five calendar days after the date of the original notice hereunder, then the right to terminate this Agreement shall be waived with respect to the particular event. 11.3 Seller agrees to maintain all necessary certifications and comply with all necessary PUCT and/or ERCOT requirements in order to perform its obligations under this Agreement. 11.4 Notwithstanding anything contained in this Agreement, Buyer shall not attempt to utilize, under the provisions of this Section XI or Section VIII, or in any other manner, its inherent powers as a political subdivision of the State of Texas in order to circumvent in any way the terms and provisions of this Agreement or the intent of this Agreement. XII. FAILURE OR TEMPORARY DISCONTINUANCE OF SUPPLY. 12.1 The supply of electricity may be disconnected in the event of Force Majeure in respect of this Agreement; or ifat TDSP's discretion it is necessary to do so for any of the following reasons: (a) to avoid danger; or because failure to disconnect the supply of electricity would or might involve TDSP being in breach of applicable regulations or laws; or to avoid interference with the supply of electricity to another person which TDSP reasonably believes may be caused or result from Buyer's equipment or device used at the Premise(s); or to enable TDSP or TDSP's representatives to inspect, maintain or repair any part of the equipment or the Distribution System; or in case of accident or other emergency affecting or likely to affect the Distribution System or any other system through which (directly or indirectly) Seller or TDSP receives or supplies electricity; or (b) because Buyer's electric connections or systems are deemed by TDSP to present a hazard. 12.2 In the event that the supply of electricity to Buyer's Premises is interrupted due to the material breach by Seller of its contractual obligations under this Agreement and not due to (i) a force majeure event, (ii) as provided in paragraph 12.1 above, or (iii) the failure of Buyer to comply with its obligations under this Agreement, then, in the event Buyer is required to purchase replacement electricity from a third party during such interruption, Seller shall be liable for the positive amount, if any, calculated as follows: the quantities so interrupted by Seller multiplied by [the then current retail market price (or the POLR price if Buyer was unable to purchase electricity from another retail electricity provider) minus the contracted price from the applicable Price Sheet]. XIII. RESPONSIBILITY. 13.1 Buyer Responsibility. Buyer assumes full responsibility for electric energy furnished to Buyer at and on Buyer's side of the Point of Delivery, and agrees, to the full extent allowed by law, to hold harmless Seller, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Seller Group"), from and against all claims, losses, expenses, damages, demands, judgments, causes of action, and suits of any kind (hereinafter collectively referred to "Claims"), including Claims for personal injury, death, or damages to property occurring on Buyer's side of the Point of Delivery and upon the Premise(s), arising out of or related to the electric power and energy and/or Buyer's performance under the Agreement. 13.2 Seller Responsibility, Buyer acknowledges and understands that (i) Seller never obtains physical possession or control of the electricity, (ii) Seller does not own nor have control of the electric transmission wires and equipment, and that they are owned and/or controlled by the TDSP, (iii) all meter reading, and repair services will be provided by employees or agents of the TDSP, (iv) all responsibilities and liabilities of the TDSP are set forth in the tariff regulations as approved by the PUCT, and (v) the employees and agents of the TDSP are not employees or agents of Seller. Seller shall not have any obligation whatsoever to indemnify, defend, nor hold harmless Buyer, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Buyer Group"), against any Claims, on either side of the Point of Delivery, arising out of or in any way related to the electricity and/or the delivery thereof, including, without limitation, the actions of the TDSP and its employees and agents, except in the event, and only in the event, that such Claims are the direct result of the sole negligence and/or intentionally wrongful act of an employee, or agent under the exclusive control, of Seller. XIV. MISCELLANEOUS. 14.1 TDSPs. Buyer and Seller agree to all terms and conditions (adopted PLVsuant to statutes, regulations or other lawful authority) of the TDSPs that provide electricity delivery services to the Premise(s) or other Buyer facilities, which may from time to time be amended, are made part of this Agreement. 14.2 Choice of Law: Venue. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW PRINCIPLES WHICH OTHERWISE MIGHT BE APPLICABLE. 14.3 Assignment. In the event that Buyer conveys legal title to all of the Premises to the same entity, Buyer may request from Seller the right to assign its rights and obligations under the Agreement to the new owner of the Premises, and in such event, Seller shall not unreasonably withhold its consent. Any purported assignment without Seller's prior written consent shall be null and void. Buyer shall not have any right whatsoever to assign this Agreement to any party that is not the owner of all of the Premises, and any purported assignment shall be null and void. Seller may assign this Agreement to another party, with the prior written consent of Buyer, which consent shall not be unreasonably withheld. Any purported assignment without Buyer's prior written consent shall be null and void. This Agreement shall inure to and be binding upon the Parties hereto, and their respective successors and assigns. H-GAC Energy Purchasing Corporation Page 5 of 11 e e 14.4 Entirety of Agreement. It is the intention of the Parties that the Agreement shall contain all terms, conditions, and protections in any way related to, or arising out of, the sale and purchase of the electricity, and supersedes all prior agreements, whether written or oral. It is also the intention of the Parties to agree to terms of service different than those that would otherwise apply under the Substantive Rules of the Public Utility Commission of Texas "Customer Protection Rules for Retail Electric Service", Sections 25.471 - 25.485, and 25.491 - 25.492. The Parties expressly acknowledge that certain terms, conditions, and protections addressed in such sections 25.472 - 25.485, and 25.491 _ 25.492 may not be provided for or referred to in this Agreement, and, in such event, it is the intent of the Parties that such terms, conditions, and protections are not applicable to the Parties. Neither Party may assert any claim that any term, condition, and/or protection contained in Sections 25.472 - 25.485 and 25.491 - 25.492 of the Rules is inconsistent with any term, condition, and/or protection contained in the Agreement and, therefore, applies to the Parties. This Agreement may not be modified or amended except in writing, duly executed by the Parties hereto. Buyer warrants that the information supplied by it pursuant to this Agreement is true and shall remain so throughout the term of the Agreement unless varied by agreement. 14.5 Waiver of Rights. A waiver by either Party of any breach of this Agreement, or the failure of either Party to enforce any of the terms and provisions of this Agreement, will not in any way affect, limit or waive that Party's right to enforce and compel strict compliance with the same or other terms or provisions of this Agreement. 14.6 Third Party Rights. Nothing in this Agreement shall create, or be construed as creating, any express or implied rights in any person or entity other than the Parties. 14.7 Survival. No termination or cancellation of this Agreement will relieve either Party of any obligations under this Agreement that by their nature survive such termination or cancellation, including, but not limited to, all warranties and obligations of indemnity. 14.8 Further Assurances. Buyer and Seller agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by the other Party which are not inconsistent with the provisions of this Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. 14.9 Distribution System. Distribution System herein shall mean any system for the distribution of electricity through which the electricity to be provided by Seller to Buyer is provided or passed to the Premise(s). Seller's obligations under this Agreement are subject to the maximum capacity and any other design feature of Buyer's Premise or Connection. Buyer shall contact Seller in accordance with all applicable legal requirements, and otherwise reasonably in advance, if Buyer proposes to make any significant change to Buyer's connection, electric lines or electrical equipment, install or operate generating equipment or do anything else that could affect the Distribution System or require alterations to Buyer's Connection. Each of the Parties undertakes to comply with Buyer's TDSP's Tarifffor Distribution Service~ 14.10 Deliverv of Electricity. Seller does not guarantee against irregularities or interruptions, it being understood that occasional irregularities and interruptions by the TDSP may occur. Buyer is responsible for installing and maintaining protective devices as recommended or required by the then current edition of the National Electric Code and other such devices as are necessary. to protect equipment or process during irregular or interrupted service including, but not limited to voltage and wave form irregularities. 14.11 Confidentiality. Seller acknowledges that Buyer is a governmental body that is subject to public information laws, including Chapter 552 of the Texas Government Code, which requires Buyer to release any information that is defined as or deemed to be public (the "Public Information Statutes"). Subject to any Public Information Statute or related order, rule or regulation requiring disclosure, Seller and Buyer agree to keep all terms and provisions of this Agreement confidential and not to disclose the terms of the same to any third parties; provided, however, each Party shall have the right to make such disclosures, if any, to governmental agencies and to its own agents, att9rneys, auditors, accountants and shareholders as may be reasonably necessary. If disclosure is sought through process of a court, or a state or federal regulatory agency, the Party from whom the disclosure is sought shall resist disclosure through all reasonable means and shall immediately notify the other Party to allow it the opportunity to participate in such proceedings. 14.12 Resale of Seller's Electric Service. Buyer may not use supply of electricity provided by Seller except for the purpose specified in the Price Sheet under which Buyer receives supply of electricity. Buyer may not resell or otherwise dispose of supply of electricity unless as provided by statute or as specifically provided for in the Price Sheet. 14.13 Authorization. At such time as executed Offer and Price Sheet(s) are attached hereto, Buyer authorizes Seller to become Buyer's new retail electric provider in place of Buyer's current retail electric provider for the duration of the Agreement Term set forth in the Offer. Buyer authorizes Seller to act as Buyer's agent to effect the change, and Buyer directs its current retail electric provider to work with Seller to make this change happen. Buyer represents to Seller that Buyer is legally authorized to change the retail electric provider for all of the Premises. 14.14 Severabilitv. If any portion of this Agreement, or application thereof to any person or circumstance, shall be held legally invalid, the remainder shall not be affected and shall be valid and enforced to the fullest extent permitted by law or equity. 14. I 5 Aggregator Fees. Seller shall bill and collect from Buyer for HGAC Energy Purchasing Corporation ("HGAC") Aggregation Fees with H-GAC Energy Purchasing Corporation Page 6 of 11 e e respect to the purchase of Electricity under these Terms and Conditions ("Aggregation Fees"). Seller shall remit all Aggregation Fee collections received during each calendar month to HGAC on or before the twentieth (20th) Business Day of the following calendar month. Payments received from Buyer shall be deemed to be payments of Seller and TDSP charges then due, then of the Aggregation Fee. 14.16 Aggregator Review. Buyer understands and acknowledges that any deviations from the standard Terms and Conditions for Supply of Electricity negotiated by HGAC on behalf of Buyer shall be subject to the prior review and consent of the HGAC. 14.17 Buyer is a Member of the HGAC Energy Purchasing Corporation. Seller is basing the indicative price on the attached price sheet upon assumptions as to the aggregated load and associated load factor of all Members of the Corporation. A condition precedent to the effectiveness of this Agreement is satisfaction of certain load and load factor criteria as agreed to between Seller and the HGAC Energy Purchasing Corporation. In the event that such criteria, as established in Section I.b of the Agreement between H-GAC Energy Purchasing Corporation and TXU Energy Services, are not satisfied, then Seller shall not sign this Agreement and it shall be null and void ab initio. 14.18 Buyer shall notify seller of any ESls that have any significant load shifting capabilities so Seller may offer multipart pricing for that Premise. The Parties have signed this Terms and Conditions for Supply of Electricity document, acknowledging their agreement to its provisions as of , 200_. TXU ENERGY SERVICES COMPANY By: By: Name: Title: Date: Name: Title: Date: "Buyer" "Seller" H-GAC Energy Purchasing Corporation Page 7 of 11 e Exhibit A List of Member Buyers' Accounts H-GAC Energy Purchasing Corporation e Page 8 of 11 e e Exhibit B Pricing Sheet TXU Energy Services Price Sheet Terms and Conditions for Supply of Electricity # This Price Sheet is only valid in association with and shall remain subject to the Terms and Conditions for Supply of Electricity ("Terms") and Offer for Supply of Electricity referenced above and is contingent upon Customer's acceptance of the Offer prior to the Offer Expiration Date. This Price Sheet is applicable to the Customer ESI number(s) identified on Exhibit A of the Terms. Monthly Prices shall equal the sum of (i) the Monthly Standing Charge set forth below; plus (ii) the applicable per kWh charges set forth below for the electricity; plus (iii) all costs and expenses of any nature whatsoever that are charged by the Transmission and Distribution Service Provider ("TDSP") for the transmission and/or distribution of the electricity, as well as any other charges of the TDSP that are attributable to the Customer Account numbers, including, without limitation, charges for reactive power; plus (iv) all other tariffs, rates, riders, fees, and charges, charged by the TDSP or another party, that are mandated, levied, assessed, allowed, or approved by the Texas Public Utility Commission and all other governmental or regulatory authorities, on or with respect to the acquisition, sale, delivery, and purchase of the electricity; plus (v) all federal, state, and local taxes, of any nature whatsoever, imposed by all governmental and regulatory authorities, on or with respect to the acquisition, sale, delivery, and purchase of the electricity, including Seller's Texas Gross Receipts Tax on the sale of electricity to Buyer; plus (vi) the Over Capacity Charge set forth below, if applicable; plus (vii) an aggregation fee of $0.00045 per kWh actually consumed by Buyer collected by Seller on behalf of and paid to HGAC Energy Purchasing Corporation. Charge Amount Monthly Standing Charge $ 20 per service point All kWh $0. per kWh $0. per kWh for delivery, excluding TDSP Delivery Charges reactive power, based upon current estimate*; Monthly price will be based upon actual char,ges. Tariffs, rates, riders, fees, and charges other than To be determined, varies by service point those included in TDSP deliverv chames above All applicable taxes To be determined, varies by jurisdiction Over Capacity Charge $ -0- per kW Buyer shall notify seller of any ESls that have any significant load shifting capabilities so Seller may offer multipart pricing for that Premise. The costs and expenses charged by the TDSP for delivery services may fluctuate during the Agreement Term, as will other applicable taxes, tariffs, riders, fees, and charges. * For reference purposes only. This is the current estimate of the average TDSP standard delivery costs, excluding charges for reactive power, special metering, or other miscellaneous TDSP charges. H-GAC Energy Purchasing Corporation Page 9 of 11 e e Exhibit C OFFER FOR THE SVPPL Y OF ELECTRICITY ContractIPlan #: BUYER: SELLER: TXU Energy Services Company 1601 Bryan Street, 7th Floor Dallas, Texas 75201 Phone: Phone: (214) 875-1000 Fax: Fax: (214) 875-1001 L The Primary Term for each Premise, identified in Exhibit A, shall CONTRACT TERM commence upon the date of the first reading of the meter(s) on each respective Premise by the TDSP after , or as soon thereafter as practicable, and shall end for each Premise upon the date of the first reading of the respective Premise meter(s) by the TDSP after II. Net 30 days. PAYMENT TERMS III. No initial deposit required. DEPOSIT AMOUNT IV. BILL PRESENTMENT METHOD V. PAYMENTMETHOD VL Toll free number (800)725-7920 for 24 hour emergency outage and STANDARD SER VICES customer service, available 7 a.m. to 7 p.m. on normal business days; Assigned customer service representative, billing analyst, and assigned professional account manager. VII. Not Applicable CUSTOM SERVICES VIIL Not Applicable SPECIAL PROVISIONS IX $ _per kWh A VERAGE COST PER KWH* X TERMS AND CONDITIONS THIS OFFER FOR THE SUPPLY OF ELECTRICITY INCLUDES THE TERMS AND CONDITIONS FOR THE SUPPLY OF ELECTRICITY, WHICH SHALL BE SEPARATELY EXECUTED BY BUYER AND SELLER AND WILL BE PART OF THIS CONTRACT. BY SIGNING BELOW, BOTH PARTIES HEREBY ACKNOWLEDGE ACCEPTANCE OF THIS OFFER FOT THE SUPPLY OF ELECTRICITY. Buyer Signature: Seller Signature: Name (Please print): Name (Please print): Kevin Bohn Position: Position: Vice President Date: Date: * Estimated. Actual cost will vary with actual delivery charges from your transmission and distribution provider and actual consumption patterns. This cost does not include applicable taxes. H-GAC Energy Purchasing Corporation Page 10 of 11 e e Exhibit D FORM LETTER - AUTHORIZATION FOR RELEASE OF ELECTRIC UTILITY DATA TO BE SIGNED BY MEMBER BUYER ON ITS LETTER HEAD [Date] TXU Energy Services Company 1601 Bryan Street Dallas, Texas 75201 Re: Account Data for Accounts listed in Attachment [Attach relevant portion of Exhibit A for description of Accounts] This letter is to serve as authorization to release to , or H-GAC Energy Purchasing Corporation all information relative to our account(s) listed in the attachment, including but not limited to service, load history, load profiles, rates, payment history, billing data and billing determinants. This request for release is valid for one (2) years from the date of this letter with respect to and five (5) years from the date of this letter with respect to H-GAC. Very truly yours, [Member Buyer Representative Signature] [Title of Member Buyer's Representative] H-GAC Energy Purchasing Corporation Page 11 of 11 e e Herrera, Bob From: lent: fo: Subject: Susan Kelley [kelleys@ci.la-porte.tx.us] Tuesday, October 16,2001 8:15 AM Mr. Herrera (E-mail) FW: H-GAC Energy Purchasing Corporation Resolution II and backup ~ ~ ~ ~. Corp info package Supply Agreement Resolution I.doc Resolution II.doc TXU 10-10-01... TXU executabl... Here is the information you requested. Susan Subject: H-GAC Energy Purchasing Corporation Resolution II and backup H-GAC Energy Purchasing Corporation October 12, 2001 We are pleased to announce that we have signed a contract with TXU Energy Services as the Retail Electric Provider to the Member Buyers of the H-GAC Energy Purchasing Corporation. Please read the attached information sheet, along with the attached Supply Agreement. Also attached are Resolution I, to become a member of the Corporation, and Resolution II, which commits you to purchase electricity. These Resolutions must be passed by November 7, 2001, in order to participate. here will be a General Participant Meeting at H-GAC offices on Tuesday, October 23, 2001, at 9:00 a.m. in Room A on the Second Floor. Please be prepared to discuss any questions you may have concerning the information included in this packet. Our contractor, TXU Energy Services, will be present to answer questions as well. <<Information Sheet>> <<Supply Agreement .doc>> <<Resolution I.doc>> <<Resolution II.doc>> If you have questions about these items or the purchasing process, please call Deidre Vick at 713.993.4540 or Bob Wooten at 713.993.4539. 1 e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: ~ie~. 2001 Requested By: Carol Ruttier ~ Department: A.dmilliitntive Servkei Appropriation Source of Funds: Account Number: Report: Resolution: Ordinance: X Amount Budgeted: Exhibits: Attached Ordinance Amount Requested: Exhibits: Correspondence from TML-IRP Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The Governor signed Senate Bill 522 to become effective January 1,2002, which makes several changes to Texas Municipal Retirement System (TMRS) benefits. One of the benefits the new legislation provides is an option to change 10-year vesting to 5-year vesting. Any participating TMRS city that prefers to keep 10-year vesting must approve an ordinance, between September 1,2001, and December 31,2001, opting out of the 5-year vesting. Any city that opts out of the 5-year vesting may reconsider this benefit at a future date. However, once 5-year vesting is selected, this benefit may not be revoked. Recommendation Staff recommends the City opt out of 5-year vesting, at this time, reservmg the right to reconsider this benefit at a future date. Action Reauired bv Council: Approve the attached Ordinance, opting out of the 5-year vesting, reserving the right to reconsider at a future date. }o)glol Date ' / ( e tit ORDINANCE NO. 2001-~~~~ AN ORDINANCE ELECTING TO NOT PROVIDE FIVE-YEAR VESTING FOR EMPLOYEES OF THE CITY OF LA PORTE WHO ARE MEMBERS OF THE TEXAS MUNICIPAL RETIREMENT SYSTEM, RESERVING THE RIGHT TO REVOKE THIS ELECTION, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City of La Porte has elected to participate in the Texas Municipal Retirement System (the "System") pursuant to the provisions of Subtitle G of the Government Code, as amended (the "TMRS Act"); and WHEREAS, section 854.205 of the TMRS Act, as amended effective September 1, 2001, provides that unless a participating municipality's governing board files with the Board of Trustees of the System before December 31, 2001, an election to not provide five-year vesting for its employees who are members of the System, such employees may, if they have at least five years of credited service with cities that do provide five-year vesting, terminate covered employment and remain eligible to retire and receive a service retirement annuity when they have attained an applicable retirement age as provided by law; and WHEREAS, the City Council of the City of La Porte finds that it will be in the public interest to elect not to provide for such five-year vesting; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The city Council of the city of La Porte elects not to provide five-year vesting under section 854.205 of the TMRS Act, and the City Secretary of the City of La Porte is hereby authorized and directed to file notice of this election with the Board of Trustees of the System before December 31, 2001. section 2. Pursuant to section 854.205 of the TMRS Act, the city Council of the City of La Porte reserves the right to revoke the election created by this Ordinance, by sending notice to the Board of Trustees of the System to provide for five-year vesting. Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, e e 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 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 4. This Ordinance shall be effective from and after its passage and approval. PASSED AND APPROVED this 22nd day of October, 2001. ~ITY' F LA PORTE By. 7..,/ AA ~ . N m~('%1:;:, Mayor ATTEST: ~~ O. dfu.aI Mar ha A. Gille t City Secretary O~uJ d APPROVED: Knox W. Askins City Attorney e . f; TML Board Communication INTERGOVERNMENTAL RISK POOL October 13, 2001 Continuation ofIO Year Vesting with TMRS Senate Bill 522, amending the Texas Municipal Retirement Act, passed both houses of the Texas legislature and has been signed into law by Governor Perry. This bill makes numerous changes to the Texas Municipal Retirement System. Among the major amendments are provisions for a five year vesting alternative to the existing ten year vesting requirement. The five year option means that after five years of service a TMRS member will have earned the right, upon termination of employment, to choose to leave the member's deposits and interest in TMRS, and, upon reaching age 60, apply for retirement. The provisions of SB 522 take effect January 1, 2002. Participating members of TMRS have from September 1, 2001, through December 31, 2001, to opt out of this new five-year vesting provision. The Texas Municipal League and the Texas Municipal League Intergovernmental Employee Benefits Pool have chosen to opt out of this provision and remain at 10-year vesting. It is recommended that the Pool opt out of the five year vesting provision. The 10-year vesting schedule has benefited the Pool in retaining qualified staff. The five year option increases the likelihood of losing skilled staff since employees would be eligible to leave the Pool after only five years of service and retain their earned retirement benefit. The cost for the current year to incorporate the five year vesting is minimal (0.14%). But this cost is expected to grow as all ever-increasing number of employees reach the five year vesting mark and become eligible to receive credit for the Pool's matching contributions. Recommendation: The Pool continue the 10-year vesting requirement that is currently in place. Further, the attached resolution be adopted to comply with the State law requirement that members opt out of the five year vesting provisions between September 1,2001, and December 31,2001. ~~ / Allan J. Romer t - ~ e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: October 22, 2001 Appropriation Requested By: Robert T. Herrera Source of Funds: Department: Administration Account Number:_ Report: Resolution: Ordinance: XX Amount Budgeted: _ Exhibits: Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Please be advised that I have asked our City Attorney to prepare an amendment to the Tax Abatement Agreement the City entered with PPG Industries on October 1, 1998. The request comes to us from Michael H. McGarry, General Manager of Fine Chemicals for PPG. The amendment will simply address the definition of permanent employees as defined on page two of the Agreement to language recommended by Harris County Office of Economic Development. This language will mirror what Harris County uses now in its definition of what constitutes a permanent employee if certain requirements are met. The requested change will not alter the spirit of the Agreement entered on October 1, 1998. The contract the City approved on October 1, 1998 laid out the following elements: o The project as proposed by PPG is for a pharmaceutical unit, to be built in three stages which, when completed, is estimated to add $55 million in taxable value to the tax roll. The project will also add 57 permanent full time jobs. o The City offered PPG tax abatement on their project, for a seven-year period (from January 2000 to December 2006) for the value of the additions to their property as long as the additions exceed $2] million but no more than a maximum of $42,750.00. We limited the abatement amount to $750,000 per job created. In my opinion, PPG has been a good corporate neighbor. They have donated over 80% of the right-of-way needed for the extension of Bay Area Boulevard and have supported the City in other ways. I would hope you would support their request for contract modifications. Action Required bv Council: Approve Ordinance No. 2001- authorizing the City Manager to execute a modification to the Tax Abatement Agreement with PPG Industries. Approved for City Council Al!enda ~~vt f. \t~'Y\<vVV Robert T. Herrera, City Manager ---1D~ IlD~ Dl Date e e e e ORDINANCE NO. 2001- ~5J0 AN ORDINANCE APPROVING AND AUTHORIZING AN AMENDMENT TO THE TAX ABATEMENT AGREEMENT BETWEEN THE CITY OF LA PORTE AND PPG INDUSTRIES, INC., 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. 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. e e ORDINANCE NO. 2001-~~3 PASSED AND APPROVED, this 22nd day of October, 2001. CITY OF LA PORTE t/;, ~~ By: ' ~ . ?/"' /N rman . Mal~ e Mayor ATTEST: city APPROVED: d! ~ ' t9~ v) ~ Knox W. Askins City Attorney PAGE 2 'I - - --- c- t1t m PPG Industries, Inc. One PPG Place Pittsburgh, Pennsylvania 15272 USA Telephone: (412) 434.2330 Michael H. McGarry General Manager Fine Chemicals j September 26,2001 ~lE(c[c~WlE~ I' f I OCT - 5 2001 I CITY MANAGER'S OFFICE Mr. Robert T. Herrera City Manager City Of LaPorte Post Office Box 1115 LaPorte, Texas, 77572 Subject: "Tax Abatement Agreement, PPG Industries Reinvestment Zone" Dear Mr. Herrera; In accordance with your request during our telephone discussion of Tuesday, September 25,2001, we are pleased to submit this letter requesting that the subject "Tax Abatement Agreement" be amended to eliminate certain existing language and add the language set forth in the David Turkel (Harris County Economic Development Administrator) letter to Hanson Gilan dated August 3,2001 (copy enclosed). Specifically, we are requesting that the term "permanent employee" as defined on page two (2) of the agreement be modified, eliminating the words "excluding any contract employee, seasonal employee, or part-time employee" and replacing it with the language suggested in the David Turkel letter. 'Contract employees will be considered as permanent employees if the following requirements are met 1) The employee can not be an individual contractor, but must be employed by a business entity that performs work on a contract basis with the Owner/Operator ofthe facility. ' 2) The employee must be a full time employee (excluding seasonal employees or part-time employees) of the Contractor, must work a minimum of thirty five (35) hours in a seven day period, report for work exclusively in the Zone, and must be reflected in an Employers Quarterly TWC Report filed by the Contractor. 3) A notarized affidavit must be provided by the Contractor, (each year) attesting to its compliance with the above requirements and stating the exact number of qualified employees that they have provided to PPG.' Mr. Herrera, thank you for your consideration of our request. Respectfully Submitted; /!l Michael H. Mc Garry General Manager Fine Chemicals Encl: e e City of La Porte Established 1892 October I~, 2001 via federal express Mr. Michael H. McGarry General Manager/Fine Chemicals PPG Industries, Inc. One PPG Place Pittsburgh, PA 15272 Re: Tax Abatement Agreement Between PPG Industries and the City of La Porte Dear Mr. McGarry: As requested in your letter of September 26, 200 I, I enclose multiple copies for your execution, of a proposed Amendment to the Tax Abatement Agreement between PPG Industries, Inc. and the City of La Porte. Please sign and return all copies to me, by Federal Express. I will place this matter on the City Council agenda of October 22, 2001. When approved by city Council, we will furnish a fully executed copy for your records. Thank you for your cooperation in this matter. ~b, tt~:t thv<- 1# :';r p~ ~9;)) CITY OF LA PORTE By: Q~~ T \-\~ Robert T. Herrera City Manager RTH: sw Enclosures P.O. Box 1115 · La Porte, Texas 77572-1115 · (281) 471-5020 .e e :ilL if REQ~ST FOR CITY COUNCIL AGI-DA ITEM Agenda Date Requested: October 15. 2001 Appropriation Requested By: Cynthia Alexander, Oirector of Finance Source of Funds: 001-6145-515 Report: Resolution: Ordinance: xx Account Number: 5007 - Other Professional Services Amount Budgeted: $125,000 Department: ItIN ANCli: Exhibits: Contract Amount Requested: $46,1 70 Exhibits: Budgeted Item: ~ NO Exhibits: SUMMARY & RECOMMENDATION The Harris County Appraisal District has the responsibility of appraising all taxable property within the City of La Porte and provides the values for the annexed and taxable portion of each industry. The un-annexed portion of these industries are subject to "in-lieu of Taxes" payments. The firm of Hugh L. Landrum & Associates, Inc. has appraised the Industrial District properties for the City of La Porte since 1968 and has provided these and other professional services in a completely satisfactory manner. The City entered into contract with Hugh Landrum & Associates in 1998 for a three-year term in the amount of $40,400 per year. The proposed contract covers a three-year period at $46,170 per year. Since, Hugh Landrum & Associates, Inc. are skilled in such matters and have the scientific and technical knowledge in respect to appraisals and valuations of industrial properties, we would like to continue our relationship with them. Staff feels that the proposed increase is warranted and represents a very reasonable amount considering all the changes in the Tax Laws over the past few years. Furthermore, they have agreed to increase their responsibility to include monitoring and enforcing industrial district agreements. Action Required bv Council: Approve Ordinance authorizing agreement with Hugh L. Landrum & Associates, Inc. for the appraisal and other services for fiscal years ending 2002,2003, and 2004 and each year thereafter until said contract is terminated as provided by ordinance. Approved for City Council Ae:enda JoJfr Date I e e ORDINANCE NO. ~OO/~aJJ+ AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND HUGH L. LANDRUM & ASSOCIATES, INC., FOR APPRAISAL AND OTHER SERVICES FOR PROPERTIES LOCATED IN THE CITY'S INDUSTRIAL DISTRICTS; APPROPRIATING $46,170 ANNUALLY TO FUND SAID CONTRACT FOR CALENDAR YEARS 2002, 2003, AND 2004 AND EACH YEAR THEREAFTER UNTIL SAID CONTRACT IS TERMINATED AS PROVIDED FOR THEREIN; 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 COUNCILOF 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 from the General Fund #001, the sum of FORTY-SIX THOUSAND ONE HUNDRED AND SEVENTY DOLLARS & NOll 00 ($46,170.00), to fund this contract on an annual basis, for calendar years 2002, 2003, 2004 and for each year thereafter that this contract shall be in existence. 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 Laws, 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 e e and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3: This Ordinance shall be in effect from and after its passage and approval. PASSED and APPROVED this the ~ day of ~ ge ( , 2001. ATTEST: 1!lMildJ ;{1lL() Mart a GIllett, CIty Secretary APPROVED: t%I t/) Knox Askins, City Attorney 2 e e STATE OF TEXAS ~ ~ ~ ~ ~ KNOW ALL MEN BY THESE PRESENTS: COUNTY OF HARRIS WHEREAS, the Mayor and City Council of the City of La Porte, Texas, have determined that it would be wise and in the best interest of the City that said City employ expert consultants skilled in the matter of appraisal and valuation of properties covered by Industrial District agreements in said City's Industrial District to compile appraisals and furnish data and information to the City for the determination of equalized values of such properties as compared with other property valuations in said City for the calendar years 2002, 2003 and 2004 and for each year thereafter as set forth herein, and for the assessment of said properties in accordance with their respective industrial district agreements with the City for the calendar years 2002, 2003 and 2004 and each respective year thereafter, and for the preparation and handling of any future Industrial District Agreement between the City and any member of industry; and WHEREAS, the firm of Hugh L. Landrum & Associates, Inc. has appraised the Industrial District properties for the City of La Porte under Contract from 1968 and is currently under contract to provide professional services relating to said properties; and WHEREAS, the Mayor and City Council find, adjudicate and determine that the firm of Hugh L. Landrum & Associates, Inc., of Houston, Texas, is skilled in such matters and has scientific and technical knowledge with respect to appraisals and valuation of such properties and many years experience in the matter of appraising and valuing such properties and handling Industrial District Contracts, and the firm's President, Hugh L. Landrum, Jr. is certified by the State of Texas both as a Registered Professional Engineer e e and a Registered Professional Appraiser; and WHEREAS, Hugh L. Landrum, Jr., President of the firm of Hugh L. Landrum & Associates, Inc. has proposed to the City of La Porte that another Contract be entered into between his firm and City of La Porte; now IT IS THEREFORE AGREED by and between the City of La Porte, Texas acting herein by its duly authorized Mayor and City Council, FIRST PARTY, and Hugh L. Landrum & Associates, Inc. of Houston, Harris County, Texas, SECOND PARTY, as follows: I. SECOND PARTY agrees to compile a complete list of appraised values for all properties covered by Industrial District Agreements and subject to Industrial District payments to the City of La Porte, Texas, said appraised values to be as of January 1, of each year of this contract, starting with the year 2002; and it is hereby understood by BOTH PARTIES that the initial values for budgeting purposes will be available by July 31 of each year covered by this contract. The final values on all properties will be presented to FIRST PARTY by October 1 of each year covered by this contract. II. SECOND PARTY further agrees to work with the Harris County Appraisal District to apprise them ofthe area of each industrial plant that has been annexed by the City of La Porte and, therefore, subject to their assessment and a City ad valorem tax. This will apply to newly annexed areas of the City as well. III. SECOND PARTY also agrees to prepare a summary report for the City's Tax Assessor Collector each year, said report to show each industry's final total value for land, 2 e e improvements, and personal property, the amount subject to ad valorem tax and the amount of the taxes, and the value subject to "in-lieu of taxes" payment and the amount of the "in-lieu oftaxes" payment. SECOND PARTY shall also provide a brief explanation of each property and any changes that may be useful in the operation ofthe City and/or budget planning. IV. SECOND PARTY will maintain a complete set of files at its work site, which will contain for each property under contract, at a minimum, a copy of the executed contract, copy of metes and bounds descriptions, copy of maps, notification of change of address or change of owner. V. SECOND PARTY further agrees to cooperate with the City Administration and the City's Tax Assessor-Collector in any other area where SECOND PARTY'S expertise may be beneficial to them in fulfilling the responsibilities of their jobs, including, but not limited to, the preparation and handling of any future Industrial District contracts entered into by the City with a member of industry. VI. IT IS ALSO FURTHER AGREED BY SECOND PARTY that in the event SECOND PARTY'S proposed values are protested by the owners or representatives of the property, SECOND PARTY will at its own expense furnish expert testimony in the District Court of Harris County, Texas to defend the proposed values. VII. SECOND PARTY agrees that the City of La Porte, will in no way be obligated or indebted to said SECOND PARTY, or its agents, servants, or employees, for salaries, 3 e e expenses, materials, or other charges except only as herein specifically otherwise provided. VIII. IT IS FURTHER AGREED BETWEEN BOTH PARTIES that this Contract will be automatically renewed on a year-to-year basis unless written notice of termination is given by either party at least 60 days before the end of the primary term or any renewal term thereof or unless another contract is signed by the PARTIES. Changes in the scope of work and/or fees may be made annually by addendum to this contract signed by both PARTIES. IX. IT IS FURTHER DISTINCTLY UNDERSTOOD AND AGREED by both parties hereto, that if any word, phrase, sentence, paragraph, or provision of this contract shall be for any reason declared or adjudicated to be invalid, such declaration or adjudication shall not affect the remaining portion thereof. X. FOR AND IN CONSIDERATION ofthe skilled services, technical knowledge, and experience of SECOND PARTY in performance of the obligations devolving upon such PARTY hereunder; and in consideration of the information given and assistance furnished by SECOND PARTY to the City's Tax Assessor-Collector in the undertaking to calculate Industrial District Taxes and "in-lieu oftaxes" payments for each calendar year covered by this contract beginning with the year 2002, and the preparation and handling of the Industrial Agreements; FIRST PARTY agrees and obligates itself to compensate SECOND PARTY by payment to SECOND PARTY, of the sum of FORTY-SIX THOUSAND ONE HUNDRED AND SEVENTY DOLLARS & NOll 00 ($46,170.00) for each calendar year covered under this contract as set out herein starting with the year 2002. 4 e e XI. IT IS AGREED between the City of La Porte and Hugh L. Landrum & Associates, Inc. that if funds are not appropriated to continue the function performed by Hugh L. Landrum & Associates, Inc. in this Agreement and for the payment of the charges hereunder, the City of La Porte may terminate this Agreement upon written notice to Hugh L. Landrum & Associates, Inc. that this Agreement has been terminated. The City of La Porte agrees to give ten (10) days written notice to Hugh L. Landrum & Associates, Inc. that the Agreement is terminated and to pay to Hugh L. Landrum & Associates, Inc. all charges incurred through the end of that period. THE EXECUTION OF THIS CONTRACT is authorized by proper resolution duly adopted by the Mayor and City Council of the City of La Porte, Texas and entered upon the Minutes of such Council. EXECUTED IN SEVERAL DUPLICATE ORIGINALS by order ofthe Mayor and City Council of the City of La Porte, Texas on this th~ day of ()CjO!Jf ( ,2001. CITY OF LA PORTE, TEXAS BY~,b/~/~ , Mayor ATTEST: lfI! d/tIit !/ llfid . , City Secretary HUGH L. LANDRUM & ASSOC., INC. BY ~ L. LL, I Hug L. Landrum, Jr., Pre~dent 5 e e Agenda Date Requested: ST FOR CITY COUNCIL A DA ITEM ctober 22 2001 Appropriation Requested By: Source of Funds: Department: Account Number: Report: Resolution: Ordinance: Amount Budgeted: Exhibits: Map Amount Requested: $13.800 Exhibits: Letter from Habitat for Humanitv Budgeted Item: NO SUMMARY & RECOMMENDATION Councilman Warren and I met with Habitat for Humanity several times to discuss opportunities for building sites on the Northside. The City's list of tax delinquent properties on the Northside (zoned residential) was reviewed by Habitat for Humanity for potential building sites. The Audit Committee was informed of these discussions at their meeting on July 23 and was generally positive about this opportunity. The Habitat for Humanity Board has voted to build two homes in the Northside area, if the City will work with them to secure the lots. On September 8, 2001, Habitat for Humanity submitted a formal request for two building sites (1) Lots 8 & 9 (2) Lots 9 & 10, Block 88. Also, there is a fifth lot (Lot 12; Block 88) on the tax resale list that is adjacent to the four lots that Habitat is interested in. All of these lots are on the City's tax resale list and the six- month right of redemption has passed. The City has an opportunity to acquire these properties for the HCAD Value/Adjudged Value of $13,800. The HCAD Value/Adjudged Value is the most recent appraisal roll value of the property on the date of the trial. The court costs will come out of the $13,800 and the remaining funds are distributed to the taxing entities. This process is $5,059.97 less than paying the delinquent taxes owed on the properties plus court costs. The City will have to acquire the properties by purchasing them in the present ownership patterns. Tracts HCAD City LPISD County Court Cost V alue/ Adj udged Delinquent Delinquent Delinquent (estimated) Value Taxes Taxes Taxes 8 $3,800.00 $895.70 $1,694.96 $752.89 $2,500.00 9 10 11 $10,000.00 $3,009.13 $5,138.59 $2,368.70 $2,500.00 12 Subtotals $13,800.00 $3,904.83 $6,833.55 $3,121.59 $5,000.00 Totals $13,800.00 $18,859.97 Estimated funds to taxing entities $2,464.00 I $4,312.00 $2,024.00 I - Once secured, the City could provide a deed to Habitat for Humanity for the pattern needed to accommodate the two proposed building sites and the remaining 5th lot would be for potential sale to the adjacent property owner. I would recommend that the City first reach agreement on the disposition of Lot 12. If the adjacent property owner and the City cannot reach agreement, I suggest we also deed this fifth lot (25 ft) to Habitat for Humanity. There would be some legal expenses associated with deed preparation and filing. If Council wishes to pursue this, a recommended source of funds is the Economic Development Fund (Fund 036) fund balance, which has sufficient funds. Action Required bv Council: Provide direction to staff on purchase of property for proposed residential building sites by Habitat for Humanity in the Northside area. Approved for City Council A2enda a\~ Robert T. Herrera, City Manager /o.l~ Date / e e 09/06/2001 16:50 28147_9 JAMES C COUNT~ PAGE 01 ~ LA I .1 . I PORTE HABITAT FOR HUMANITY P.O BOX 2087 IJA PORTE9 TX 77S7~-1087 September 8. 2001 City of La Porte 604 N. Pairmont ~kwy. La Porte, Texas 77571 Attention: John Joerns, Asst. City Mgr. Subject: Request for Additional Land by La Porte HFH The La porte Chapter of Habitat for Humanity site selection committee 1s presently evaluating locations in La Porte for target areas that meet our criteria. Por those of the Council that may not be familiar with HP'H, the putpose is to improve the quality of lives and the community by assisting low income families in building and owning decent and affordable housing. This is done with volunteer labor, management expertise, . and tax-deductible donations of lJlQney, land, and materials and with the help of the family that will receive the home. A no interest mortgage is executed with payments recycled back into the program to finance the next house(s) . The program was organized in La Porte in late 1993. We have just dried in the tenth house in La Porte and are going to need.our next building sites in early 2002 to keep the momentum. (HFH International dedicated the 100,000 house built world wide, August 2000). Following meetings with you, councilman wanen, and. the site committee it was agreed by the Chapter board of directors at their August meeting, that we would start our program in gloek 88, if we can obtain at least two site in close proximity, but would prefer four. The City presently owns five lots (two sites) in this block (8-12). There are four other potential building sites, privately owned, in this block. The site committee is contacting owners for possible purchase of these properties. . It should be noted that to date, our program has added over half million dollars to the local tax rolls. The city has waived permit fees and in conjunction with the J.!. Cook family donated the six sites on fifth street. It is requested that Council continue this joint venture with the La Porte HFH group in developing this area by making the property available as reasonable as possible. The'property would return to the tax rolls as construction is completed on each site. HFH is tax exempt'for three years. Should you need additional information .or if we 8hould have a member present at council meeting, please advise. ~cJ:,r~~~ --, im Counts, for site Selection Committee 1l/J1tI'"llmuuc in parln~rdtlp .hlt G...... IM4p1. ilt INell e e e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Appropriation Requested By: S. Gillett Source of Funds: Various Department: Public Works Account Number: Various Report: XX Resolution: Ordinance: Amount Budgeted: $ 103.199.00 Exhibits: Bid Tabulation Amount Requested: $ 84,709.00 Exhibits: Bidder's List Budgeted Item: YES Exhibits: SUMMARY & RECOMMENDATION Sealed bids were received on October 8, 2001 for Heavy Equipment. The equipment consists of the replacement of two (2) backhoes with a backhoe and crawler excavator and the addition of one (1) crawler excavator. Bids were sent to seven (7) vendors with five (5) returning bids. Low bid meeting specification for the replacement of a backhoe (Item I) was submitted by A- Tex Equipment in the amount of$39,61O.00. With the addition ofthe optional extendable dipperstick and reduction for trade-in allowance, the net cost for this replacement is $35,497.00. Low bid meeting specifications for the addition of one (1) crawler excavator (Item II) and the replacement of one (1) backhoe with a crawler excavator (Item III) was submitted by Wowco Equipment in the amount of$57,212.00. With the reduction for trade-in allowance, the net cost for these two (2) units is $49,212.00. Adequate funds ($78,199.00) were budgeted in the Motor Pool Replacement Fund for the replacement of the two (2) backhoes. Adequate funds ($25,000.00) were budgeted in the Wastewater Collection Division Operating Budget for the addition of the crawler excavator. Action Required bv Council: Award bid for Item I to A-Tex Equipment in the amount of $35,497. Award bid for Items II and III to Woweo Equipment in the amount of$49,212.00. Approved for City Council Ae:enda Manager BID TABULATION BID # 0814 HEAVY TRUCKS R. B. EVERETT & COMPANY WOWCO EQUIPMENT MUSTANG TRACTOR IH- DOGGETT IND A- TEX EQUIPMENT e No Bid No Bid No Bid No Bid $43,000.00 ($6,500.00) $36,500.00 $3,900.00 $40,400.00 $43,185.00 ($9,000.00) $34,185.00 $2,924.00 $37,109.00 $28,585.00 $39,610.00 ($7,500.00) $32,110.00 $3,387.00 $35,497.00 $26,890.00 QTY 1 DESCRIPTION Diesel Powered Backhoe Less Optional Trade-in Allowance Item #1 Total Option - Extendable Dipperstick Total w/Option 1) e $27,660.00 $32,660.00 No Bid $32,660.00 $24,582.00 $32,630.00 ($8,000.00) $24,630.00 $36,300.00 $36,400.00 ($7,500.00) $28,900.00 $31,927.00 ($6,500.00) $25,427.00 $32,803.00 ($8,500.00) $24,303.00 1 Excavator/Crawler 5,910 -7,546Ibs. Excavator/Crawler 7,782 - 8,815Ibs. Less Optional Trade-in Allowance Item #3 Total 2) 3) ,'" T e A-TEX EQUIPMENT COMPANY 700 OATES ROAD HOUSTON, TX 77087 HI-WAY EQUIPMENT PO BOX 14174 HOUSTON, TX 77221 R. B. EVERETT PO BOX 7300 PASADENA, TX 77580 WOWCO EQUIPMENT 5430 HWY 146 BAYTOVVN,TX 77520 CHAMBER OF COMMERCE PO BOX 996 LA PORTE TX 77572-0996 BIDDER'S LIST HEAVY EQUIPMENT SEALED BID #0841 -e CARRUTH DOGGETT 5935 GRIGGS ROAD HOUSTON, TX 77023 MUSTANG TRACTOR 12800 NORTHWEST FRWY HOUSTON, TX 77040 RUSH EQUIPMENT 10100 NORTH LOOP EAST HOUSTON, TX 77029 BA YSHORE PUBLISH DATES: SEPTEMBER 23, 2001 SEPTEMBER 30, 2001 e e MEETING HANDOUTS e e Dave Ttu-nqlllst LIlPorte lIigh Scbool- Government/Economics (281) 604-7:>64 LPHS STUDENT RECOMMENDATIONS TO CITY COUNCIL Twice this semester, students at LPHS have gathered to discuss issues in and around La Porte that are of concern to them. The purpose of this group is to provide a forum for the young people of our town to discuss and share ideas about ways to make La Porte a better place. Here are the ideas that they came up with at the first 2 meetings. 1) The new park near Canada St. between Fairmont and Spencer should include a walking/running track/trail, a covered basketball court (similar to Northside), and it would be nice to have a small lake/pond with fish in the middle of the park (could be built in conjunction with drainage/flood improvements that could also benefit runoff from Brookglen Subdivision) 2) Main Street has several abandoned buildings that need to be torn down. The students feel that Main Street is not a viable shopping attraction to the town and serious consideration should be given by the city to further reviitalize the Main street area including more landscaping and improvements. Some students were willing to assist the city with landscaping and demolition projects. 3) Concerns about the stoplights on Fairmont not being timed properly. Some want a flashing strobe stop light at Farrington. Some want a light at Driftwood. Some said there are already too many lights. 4) Apartment complex on old 146 across from Rec Center on Forest Dr. should be demolished. 5) City of La Porte should work towards a joint project with Harris County to revitalize Sylvan Beach. Many ideas were tossed around including a beach, amusements, campground, water park/pool, concerts, boardwalk with boat docks. 6) The City should be aggressively seeking to bring a higher level of stores to the area such as a mini mall or outlet mall. The students feel it is not right to have to drive to Baytown , Pasadena or Texas City to go shopping for clothes and everyday items. With 31,000 people we should have our own Wal-Mart or similar type store/stores Dave Turnquist Sponsor of the LPHS Government Discussion Group (formerly know as) Youth Advisory Council Inc. Phone: 713. 947-6606 Pager 281.626-2009 Fax: 713. 947-6609 3425 Federal Street Pasadena, Texas 77504 Email:(>.Je'IT" llJ l~ri\il (fl!~~~lJ 1111 .. .. e e October 1,2001 City Councilman Clarke, On the October 8th City Council meeting you will be presented with minimal information concerning the donation of building lots to the La Porte Habitat for Humanity. The purpose of this donation is to allow Habitat to build two homes for low income home owners. I am one of several homeowners that lives adjacent to the now vacant lots that are in question. Here are the facts that won't be volunteered from any other parties involved: o I have been actively pursuing these same lots for three years. o During this period of discovery, I have taken complete control of maintenance and improvements to these lots, also shown by the photocopies enclosed. o I have been bidding on them for a year, as shown by the photocopies enclosed. o I currently have a bid pending with the La Porte Tax Office. o There has been no interest by anyone else for these lots since 1977 when the owners abandoned them. o Up until three months ago, Habitat had no interest in building any more homes east of SH# 146 because of the Windstorm Building Requirements. o There are at least eight other home building sites available to Habitat on the Northside alone. o My current bid on the lots is $7600.00 and is payable upon acceptance of the bid. o Habitat will always be looking for free or low cost land to build on. o These vacant lots are my only opportunity to have the ability to expand my homestead in the future. Bottom line is that this program is aggressive and creative but it also carries the ability to cancel my rights to fair and just treatment by the City for the Resale Tax Acquired Property Program. The rules were changed in the middle of the e e bidding process and I may lose the rare chance for additions to my home. The Habitat group can build anywhere. I propose that La Porte Habitat for Humanity be directed to build on another site on the Northside and I will pay the acceptable bid for the vacant lots. All that I ask is that you take all of the facts under consideration and make the right decision. This can truly be a win/win situation if proper respect is given to all parties. Please contact me at your earliest convenience with any questions or clarifications concerning this matter. Sincerely, D. Paul Larson D. Paul Larson 406 4th St., North La Porte, TX 77571 (wk) 713.947.6606 (hm) 281.842.7441 e e BUILDING LOTS AVAILABLE TO HABITAT FOR HUMANITY ON THE NORTHSIDE P028 Lots 27-28; Block 90 423 N. 5th. P056 Lots 8-9; Block 375 908 N. 1st. P062 Lots 21-23; Block 63 207 N. 2nd. P083 Lots 3-4; Block 62 216 N. 2nd. P088 Lots 9-10; Block 31 213 S. 6th. P105 Lots 9-10; Block 84 312 N. pt. Pll1 Lots 21-22; Block 33 218 N. 3rd. P112 Lots 29-30; Block 77 300 blk N. 7th. Note: This list excludes four lots on North 4th St. being acquired by City of La Porte Parks and Recreation (PlIO) and four lots that are actively being sought by myself (P033). This list is accurate as of August 17, 2001. e e CITY OF LA PORTE INTEROFFICE MEMORANDUM August 17,2001 ; @@[P)W FROM: John Joems, Assistant City r \~ ~r~ ~~r TO: Mayor and City Council Robert T. Herrera, City Manager Habitat for Humanity Opportunity for Building on the N orthside of La Port, Councilman Warren and I met with Habitat for Humanity several times to discuss opportunities for building sites on the Northside. The City's list of tax delinquent properties on the Northside (zoned residential) has been reviewed by Habitat along with the potential to secure other lots. SUBJECT: The Habitat for Humanity B,oard has voted to build two homes on Lots 8-11, Block 88, if the City will work with them to secure these lots. I expect a formal request from them shortly. These lots are on the City's tax resale list and the six-month right of redemption has passed. There is a fifth lot (Lot 12; Block 88) on the tax resale list that is adjacent to the four lots that Habitat is interested in. The property owner adjacent to this fifth lot has shown an interest in these properties and may submit a bid for the fifth lot. The Audit Committee was informed of these discussions at their meeting rim July 23 and was generally positive about this opportunity. I have asked the Finance Department to do a follow up memorandum on the ~rocess and expense associated with purchasing these properties. c: Cynthia Alexander, Director of Finance Doug Kneupper, Director of Planning JJ/cns e e CITY OF LA PORTE 2001 TAX RESALE PROPERTIES NORTH SIDE AREA ~. r I [ I ' J I l- I I I I I I I J I I I ,e e REAL PROPERTY' OFFER FORM OFFER TO PURCHASE PROPERTY FROM THE CITY OF LA PORTE. TRUSTEE (submit one offer for each account) OFFER NAME(S): P. ?4UL LA~So,v '-(O~ L{~ S{-, I NoRTH , ADDRESS: 2IJ I. '8'12, 'J t!~ / PHONE/FAX NUMBER(S): INk 7/3. 9t17. ~~o6 HCAD ACCOUNT NO.: 023 2.08 088 009 PROPERTY DECRIPTION:' [P033J" Vrf-c..4JUr' toTs l4iXSA- CC{VT TO Mr HoME ON 77ft; N'oRl7/S/])E . AMOUNT OFFERED: $3500- GOOD FAITH PAYMENT:(10% of offer amount) 1t3'So - , - _ -~:',~;' .'. perty by the , :?~5!:~{3J:,'_'; ::l the Ci~ of the City will ~ sale of tax ::tween said -9- ~-- W DootalIIOI'>~ I a.. .C~~'~e ~".en<eI>l I understand 1 units agree 19 4nit to an In to the tax I also state i RECYCLED PAPER * DA TE: /0. / t(. tJ () GOTHIC SPlENDO~WDGS #/~~ OFFEROR: SWO~ TO AND SUBSCRIBED BEFORE ME, THE UNDERSIGNED AUTHORITY, ON THIS THE /9"' DAY OF OC'lCber, 1RI~.O '/---:\ . . ,~UcnJ NOTARY PUBLIC, STATE OF T ,\Nfi{~, ~.",;, . .:..; ...~~ 1'-" LORIE DOUGHTY MY COMMISSION EXP1RES SepI8mber 13, 3Xl3 . : J ' I I I i I I I I I I I I I I I I I I e e REAL PROPERTY OFFER FORM OFFER TO PURCHASE PROPERTY FROM THE CITY OF LA PORTE. TRUSTEE (submit one offer for each account) OFFER NAME(S): ]). f.t4\)L- LAie.SeuJ ADDRESS: . ,/p 6 ~~ s--f.. II,,~ rr/ , PHONE/FAX NUMBE;R(S):C_J 7/3. ''f7.:~w;, /(f4X) 7/1. '';7.,,~'1 jp-J 28/. 81/Z.7rrl HCAD ACCOUNT NO.: 023 208 oRB oOr PROPERTY DECRIPTION: :# 'P033 ' - ~ Ldrs; ,4/)'SIf~-r "1""'0 my f/oMf ON tHe- Noknt 'S1'De. ~ "0/00- ~ ~ ~ rb{6Io-- AMOUNT OFFERED: GOOD FAITH PAYMENT:(10% of offer amount) -~,f';''.~ --,:3 . perty by the ~s contained .. ~hase of the the City of the City will / -~) sale of tax $ (p / Ot~tween said Dollars 6J ~ in' understand I units agree 19 unit to an; n to the tax I also state: . j afT arr I a: >")':'"rke;'J""er'w", I At' ,-----~----- ...-.----.--. .-..._--_...., --. ._---_.. .----.-.- 111800 ~ :U; ~oo qlll RECYCLED PM'Efl * GOTHIC SPLENOORC!lWDGS DATE: .3. 22. 0 ( 41V~~ OFFEROR: SWORN TO AND SUBSCRIBED BEFORE ME.. THE UNDERSIGNED AUTHORITY, ON THIS THE ~& DA Y OF fYla..A.c..h , j.9..QL. / . I) . /1 fL , ,LJ~a~ ~~~ NOTARY PUBLIC, STATE OF TEXAS i~.::;t~ [:~A \~.JI(.." "~..fi':$'" .'~ .-!~ TRACIE CHARI...EVlU.E i MY COMMISSION EXPIRES J NOYeniler 24, 2002 ~ I I I I I I I I I I I I I I I I I I I e e REAL PROPERTY OFFER FORM . OFFER TO PURCHASE PROPERTY FROM THE CITY OF LA PORTE. TRUSTEE (submit one offer for each accou~ OFFER NAME(S): 0.' v4u L L4-I<SD~ ADDRESS: 'f 0 b t.(~ 51 ;( rRr1f PHON ElFAj. NUMBER(S): ((-{vt<) 28{-8<(2~7<{Y( C~k) 7/3-'lCf7-66r:(; HCAD ACCOUNT NO.: VO 35' 623 208 088 ooq PROPERTY'DECRIPTION: fJ035 ~U.~.()k)T L..6rS ADJ7\CGv-r ID N\,Y ;r/-oKrtI s [PE f/oM. e: . . ~ 7600- AMOUNT OFFERED: I -t/76o ~ GOOD FAITH PAYMENT:(10% of offer amount) , . ired property by the nditions contained the purchase of the .., eited to the City of :flY offer, the City will 'i'tand the sale of tax nflict between said e, and I understand II taxing units agree ch taxing unit to an addition to the tax )e paid. I also state f:jCl_l(~~nam I:~' .. ~ 0 7 .Ii 0 l.1: 0 b b 2 III aDO l. ~ b l. DOli III o l'lEcYCt.EOPAPER* GOTHIC sPlEl,.OOMWD9S #U~ OFFEROR: DATE: 7~ 2{-O{ $~~ TO AND ~BED BEFORE ME, THE UNDERSIGNED AUTHORITY, ON THIS THE DAY OF ,~~'?\ _ \. ' W~ ~c.. NOTARY PUBLIC, STATE OF TEXAS . e . . e . . ,.. .-1 . l -.~ ~ . . . r- I -, t;,(i