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HomeMy WebLinkAbout2002-10-28 Regular Meeting and Workshop Meeting . - .., . It MINUTES OF THE REGULAR MEETING AND WORKSHOP OF LA PORTE CITY COUNCIL OCTOBER 28, 2002 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 Mike Mosteit, Chuck Engelken, Howard Ebow, Peter Griffiths, Bruce Meismer, James Warren, Charlie Young, Barry Beasley and Norman Malone Members of Council Absent: None Members of City Executive Staff and City Employees Present: Assistant City Attorney John Armstrong, Acting City Manager John Joems, City Secretary Martha Gillett, , Assistant Police Chief Aaron Corrales, Director of Finance Cynthia Alexander, Director of Planning Doug Kneupper, Human Resources Specialist Kendra Williams, Human Resources Office Assistant Cindy Gates, Director of Administrative Services Carol Buttler, Public Works Director Steve Gillett, Purchasing Manager Susan Kelley, Emergency Services Director Joe Sease, Human Resources Lorie Doughty, Assistant City Secretary Sharon Harris, MIS Manager Larry Mabe, Director of Parks and Recreation Stephen Barr, Police Chief Richard Reff, Administrative Assistant to the City Manager Crystal Scott Others Present: Penny Garcia, Rudy Garcia, Louis Rigby, Dottie Kaminski, Spero Pomonis, Sue Gale Mock Kooken, Dave Turnquist, Colleen Hicks, Barbara Norwine, Jonathan Gonzalez, Dave Klingman, Mike Prasek, Mary McLain, Valerie Owens, Laquisha Jackson, Kendra Williams, Lorie Doughty, Susan Smith, Amy Brown, Brittany Barter, Jessica Salinas, Ashley Thurman and a number of citizens, 2. Mayor Norman Malone delivered the invocation, 3. Mayor Norman Malone led the Pledge of Allegiance. 4. Council considered approving the minutes of the Regular Meeting of La Porte City Council on October 14,2002, Motion was made bv CouncilDerson Warren to approve the minutes of the Relrular Meetimz on October 14. 2002. Second by Councilperson Griffiths, The motion carried, Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None City Council Minutes 1'02 - Page 2 -- 5. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND T AXP A YTERS WISHING TO ADDRESS CITY COUNCIL Penny Garcia of 3110 Oaken Lane of La Porte, requested a low frequency prohibition be added to the noise ordinance for the neighbors within hearing distance of Fairmont Park Baptist Church. Barbara Norwine of 202 South Lobit, La Porte, spoke regarding a Thanksgiving Dinner at Fairmont Park Baptist Church and the City's cable access channel. Louis Rigby of 3115 Woodland Court, La Porte, voiced his concern fiduciary responsibility regarding the City Manager's resignation. David Klingman of 3810 Pecan Circle, La Porte, voiced his concerns regarding no traffic signal at Driftwood and Fairmont Parkway. 6. Council to consider approval or other action regarding a resolution approving the submittal of an application to the Texas Department of Transportation safe routes to school program for a project nomination provided by transportation code ~201.614, enacted by Texas legislature. Director of Parks Stephen Barr presented summary and recommendation of a resolution and answered Council's questions. Assistant City Attorney read: RESOLUTION 2002-37 - A RESOLUTION OF THE CITY OF LA PORTE APPROVING THE SUBMITTAL OF AN APPLICATION TO THE TEXAS DEPARTMENT OF TRANSPORTATION SAFE ROUTES TO SCHOOL PROGRAM FOR A PROJECT NOMINATION PROVIDED BY TRANSPORTATION CODE ~201.614, ENACTED BY THE TEXAS LEGISLATURE. Motion was made bv Councilperson Ebow to approve Resolution 2002-37 as presented bv Mr. Barr. Second by Councilperson Meismer, The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None Councilperson Mike Mosteit noted for record that the Lomax area is not being slighted, they have full busing privileges. 7. Council considered approval or action of an ordinance approving an agreement between the City of La Porte and Harris County, regarding Community Development Block Grant funding of play equipment for Little Cedar Bayou Park. Director of Parks and Recreation Stephen Barr presented summary and recommendation of an ordinance and answered Council's questions. City CouneD MInutes 1'02 - Page 3 - Assistant City Attorney read: ORDINANCE 2002-2588 - AN ORDINANCE AUTHORIZING AND APPPROVING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY, REGARDING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING OF PLAY EQUIPMENT FOR LITTLE CEDAR BAYOU PARK; MAKING VARIOUS FINDINGS AND PROVIDSIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTNE DATE HEREOF. Motion was made bv Councilperson Griffiths to approve Ordinance 2002-2588 as presented bv Mr, Barr. Second by Councilperson Warren. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None 8. Council considered approval or other action regarding an ordinance approving an agreement between the City of La Porte and Harris County regarding Sylvan Beach shoreline erosion remediation, Director of Parks and Recreation Stephen Barr presented summary and recommendation of an ordinance and answered Council's questions. Assistant City Attorney read: ORDINANCE 2002-2589 - AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY, REGARDING SYLVAN BEACH SHORELINE EROSION REMEDIATION; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING FOR AN EFFECTNE DATE HEREOF. Motion was made by Councilperson Youne: to approve Ordinance 2002-2589 as presented by Mr, Barr. Second by Councilperson Beasley, The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None 9. Council considered approval or other action regarding an ordinance approving and authorizing an interlocal agreement between the City of La Porte and Harris County, for left turn lanes and traffic signal modifications at Fairmont Parkway and Brookwood, Fairmont Parkway and Farrington Boulevard, and Fairmont Parkway and Farrington Boulevard, and Fairmont Parkway and Wilmont Drive, appropriating not to exceed $200,500,00. Director of Planning Doug Kneupper presented summary and recommendation and answered Council's questions. City Council Minute. lL2 - Page 4 -- Assistant City Attorney read: ORDINANCE 2002-2590 - AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY, FOR LEFT TURN LANES AND TRAFFIC SIGNAL MODIFICATIONS AT F AlRMONT P ARKW A Y AND BROOKWOOD, FAIRMONT PARKWAY AND FARRINGTON BOULEVARD, AND F AIRMONT P ARKW A Y AND WILMONT DRIVE; APPROPRIATING NOT TO EXCEED $200,500.00, TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made bv Councilperson Beasley to approve Ordinance 2002-2590 as presented by Mr. Kneupper. Second by Councilperson Griffiths. The motion carried, Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None 10, Council considered approval or other action regarding an ordinance authorizing that certain lease and rental assignment and security agreement by and among Tri-Star Aviation, Inc., First Choice Bank, South Houston, Texas, and the City of La Porte. Director of Public Works Steve Gillett presented summary and recommendation and answered Council's questions. Assistant City Attorney read: ORDINANCE 2002-2591 - AN ORDINANCE APPROVING AND AUTHORIZING THAT CERTAIN LEASE AND RENTAL ASSIGNMENT AND SECURITY AGREEMENT, BY AND AMONG TRI-STAR AVIATION, INC., 1ST CHOICE BANK, SOUTH HOUSTON, TEXAS, AND THE CITY OF LA PORTE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made bv Counciloerson Meismer to aoorove Ordinance 2002-2592 as oresented bv Mr. Gillett. Second by Councilperson Ebow, The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None 11. Council considered approval or other action regarding an ordinance authorizing an agreement between the City of La Porte and Robert T, Herrera; making various findings and provisions relating to the subject; finding compliance with the Open Meeting Law; and providing an effective date hereof. Assistant City Attorney John Armstrong presented summary and recommendation and answered Council's questions. City CouneD Minutes 1'02 - Page 5 -- Assistant City Attorney read: ORDINANCE 2002-2592 - AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND ROBERT T. HERRERA; MAKlNG VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTNE DATE HEREOF. Motion was made by Councilperson Griffiths to approve Ordinance 2002-2592 as presented by Mr. Armstrong. Second by Councilperson Ebow, The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Porter, Warren, Young, Clarke, and Malone Nays: None Abstain: None 12. Council considered approval or other action regarding an ordinance authorizing an agreement between the City of La Porte and the La Porte-Bayshore Chamber of Commerce. Acting City Manager John Joerns presented summary and recommendation and answered Council's questions, Assistant City Attorney read: ORDINANCE 2002-2593 - AN ORDINANACE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE LA PORTE-BA YSHORE CHAMBER OF COMMERCE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTNE DATE HEREOF, Motion was made by Councilperson Beasley to approve Ordinance 2002-2593 as presented by Mr. Joerns, Second by Councilperson Meismer. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None 13. Consent Agenda Council considered a consent agenda as follows: a. Consider approval to award bid for the replacement of heavy trucks as recommended by Staff, Director of Public Works Steve Gillett presented summary and recommendation and an.swered Council's questions. Motion was made by Councilperson Griffiths to approve the bid as presented by Mr. Gillett, Second by Councilperson Young. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None City C.DDcil MiDules 11.02 - Page 6 e b. Consider approval to award bid for Sections 1 and 2 to Carr's City Tire and Section 3 to A to Z Tire Company, low bidders meeting specifications in each section as recommended by staff. Director of Public Works Steve Gillett presented summary and recommendation and answered Council's questions. Motion was made by Councilperson Griffiths to approve the bid as presented by Mr. Gillett, Second by Councilperson Young. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None c. Consider approval to award bid to The Groce Company, overall low bidder meeting specifications, as recommended by staff.. Director of Public Works Steve Gillett presented summary and recommendation and answered Council's questions. Motion was made by Councilperson Griffiths to approve the bid as presented bv Mr. Gillett, Second by Councilperson Young. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None d. Consider approval to award RFP#0099 for Microcomputer Systems & Components - rebid in the amount of $58,722. Purchasing Manager Susan Kelley and MIS Manager Larry Mabe presented summary and recommendation and answered Council's questions. Motion was made by Councilperson Griffiths to approve the award as presented by Ms, Kelley and Mr. Mabe, Second by Councilperson Young. The motion carried, Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None e. Consider approval to award bid for RFP #0 1 00 for Itron Hand-held Computers in the amount of $26,760 to include computer units, implementation and training, MVRS software and one (1) year of maintenance and support. Purchasing Manager Susan Kelley and MIS Manager Larry Mabe presented summary and recommendation and answered Council's questions. City Council Minutes 10102 - Page 7 e Motion was made by Councilperson Griffiths to approve the award as presented bv Ms. Kelley and Mr. Mabe. Second by Councilperson Young, The motion carried, Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None f. Consider approval to award bid #0868 for gasoline and diesel fuels in the amount of $258,173.20, Purchasing Manager Susan Kel1ey and Director of Public Works Steve Gillett presented summary and recommendation and answered Council's questions. Motion was made by Councilperson Griffiths to approve the award as presented bv Mrs. Kellev and Mr Gillett. Second by Councilperson Young. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None 14. Workshop was cal1ed to order by Mayor Malone at 6:38 p,m, Director of Administrative Services Carol Buttler provided direction to staff on how to proceed with an ordinance adopting Chapter 172 to be effective January 1,2003, This item was discussed regarding the pros and cons, and legal aspects; this will be brought back to Council. 15. Closed Workshop and reconvened Regular Meeting at 6:58 p,m. 16, Consider approval to adopt an ordinance authorizing redesign of the medical plan (Exhibit A), Director of Administrative Services Carol Buttler presented summary and recommendation and answered Council's questions, Assistant City Attorney read: ORDINANCE 2002-2595 - AN ORDINANCE AUTHORIZING AND APPROVING A CONTRACT AMENDING THE MEDICAL PLAN DESIGN, PROVIDED BY THE CITY OF LA PORTE AND ADMINISTERED BY THE TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE BENEFITS POOL (TML-IEBP), TO BE EFFECTNE JANUARY 1,2003; AUTHORIZING FINDINGS AND PROVISIONS RELATING TO THE SUBJECT MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECf; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTNE DATE HEREOF. City Council Minotes 10102 - Page 8 e Motion was made by Councilperson Beaslev to approve the ordinance as presented by Mrs, Buttler. Second by Councilperson Engelken. The motion carried. Ayes: Mosteit, Engelken, Ebow, Griffiths, Beasley, Warren, Young, Meismer and Malone Nays: None Abstain: None 17. Administrative Reports Acting City Manager reminded Council of the Volunteer Banquet on November 7,2002 at Sylvan Beach Pavilion; Salute to Industry Banquet on November 14,2002 at Sylvan Beach Pavilion and Public Works' receipt of the TML Excellence Award. 18. Council Comments CounciImembers Mosteit, Engelken, Griffiths, Beasley, Warren, Young, Meismer and Mayor had comments. 19. Council retired into Executive Session at 7:24 p,m. 551.074 - Personnel Matter - Deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee: Discuss the appointment of a City Manager. Council reconvened the Council Meeting at 8:15 p.m. 20. There was no action taken during Executive Session, 21. ADJOURNMENT There being no further business to come before Council, the Regular Meeting and Workshop Meeting was duly adjourned at 8:16 p.m, Respectfully submitted, ~~(1Jffif City Secretary Passed and approved on this 11th day of November 2002, 1~~d-- "\ I TO: La Porte Mayor Norman Ma_, Interim City Manager John Joernes, Doug Kneupper, and City Councilpersons · M--,,"Cf FROM: Rudy & Penny Garcia, 3110 Oaken Lane, La Porte TX 77571-4224 ~ {I / SUBJECT: Fairmont Park Baptist Church (FPBC): COMMON LAW NUISANCES: ' *CONCERT BASS NOISESMBRATIONS (low frequency nuisance) *Standing water & pools from lack of drainage since reported August 1999 *NOT mowed dirt mounds; trash on property and mounds; access to mounds *Zoning violations since January 2001 DATE: October 28, 2002 Please take immediate action on the following: 1. Revise La Porte NOISE ORDINANCE to include prohibiting the sounds of the concert noise that invades neighbors' homes. -- --- - --- SlU!2estion: Noise that can be heard beyond SO ft. from the buildill2 and/or source. such as amDlifiers from a car. is Drohibited. (See Pasadena noise ordinance.) NOTE: Four homeowners called LPPD the night of FPBC's most recent concert on October 11. Ed MatllSZllk, V'lCky Porter, Joeena Davis, and Penny Garcia, unaware of each other's call, logged a complaint of the lI1UUJying concert boss we heard insitk our homes. 2. Do not aDow Fairmont Park Baptist Church to deprive their neighbors of their privacy and enjoyment to their homes. 3. Proted the homeowners. 4. Consider that the neighbors have been living in their homes much longer than when the church began these concerts. Give the homeowners their rights. 5. Do !!!!! make the neighbors wait any more months. These requests have been made since May 2001, and FPDC has made living conditions in our home worse, not better. 6. Quit giving the church so much latitude and so many extra, extra chances and opportunities to clean up their ad. 7. Prevent the children from using the mounds for bicycling in the future. Your job is to protect the homeowners. On August 18, 2001, I gave the Council a list 0 that were ignored then. Please do not continue to ignore them. TAKE AcrION NOW. a. (Section 1~6-~J7pfzoningordinance: That the specific use [of permit] will be compatible with and not lnlurrous 0 t e use and eniovment 0/ other property, nor significantlv diminish or imDair propertv values in the immediate vicinitv. VIOLATIONS: 1, Concert and ramp noises are injurious to the enjoyment of our homes. 2. Garcias' property value diminished $23,500 in May 2002 from the appraisal district. / l _ 3. Standiri. water behind Garcia fence injurious to uselenjoyment of our property. ...--- ~~ b. (Section 106-217 (the zoning ordinance: That the applicant [FPBC] has agreed to meet any additional ~ conditions imposed, ... and necessary to Drotect the public interest and welfare of the communitv, VIOLATIONS: 1. The church's noises (concert & skateboarding) do not protect the neighbors' welfare. 2. The standing pools of water do!!!!! protect the neighbors' welfare, Le. health. c. (Chapter 91>fComprehensive Plan,. The attractive appearance and environmental Quolitv of existing residential neif!hborhoods should be protected to maintain the value o/properties and enhance the quality o/life. VIOLATIONS: 1. The despicable church property appearance, Le. un mowed and trashy mounds as well as the ugly new ditch behind our fence. We request trees be required between our fence and their ditch. 2. Th i pools of water are not environmentallY safe. Le. ideal mosquito breeding grounds. d. Section 106-334 '(the Code o/Ordinances: Landscape buffers-Buffers are necessary to preserve the va ue oft e omes. reduce adverse effects 0/ traffic, lighting, noise. dust and odor, and to protect the homeowner's privacy by requiring spacing and screening between uses of different types or intensiJies. 1. The value of the Garcias' home has!!!!! been preserved (already reduced $23,500 May 2002). 2. There are no landscape buffers to proted the Oaken,Lane homeowners from the church's concert noise or skateboarding. . e e e Requested By: Aoorooriation Agenda Date Requested: October 28 200' Stephen Barr N/A Department: Account Number: Report: Resolution: X Ordinance: Amount Budgeted: -0- Exhibits: Rp.~nh Itinn Amount Requested: Exhibits: Budgeted Item: YES NO SUMMARY & RECOMMENDATION The Texas Department of Transportation has initiated a new construction program, called Safe Routes to School, to improve the bicycle and pedestrian safety of school age children in Texas. The applicant must be a political subdivision of the State of Texas, The City, in conjunction with the La ~ Porte Independent School District and the City of Shoreacres, is proposing a ~separated pedestrian/bicycle path from Fairmont Parkway southward to the dead end of Spur 501, a distance of approximately 1.5 miles. If approved, the path will provide safe access to students from their homes to Bayshore Elementary, La Porte Elementary, La Porte Junior High, and La Porte Senior High School. The City will assist in administrative oversight for the project through force account efforts. If approved, major funding for the project will be provided by TxDOT, with L.P.I.S.D, providing paving of the path from Spur 501 to Bayshore Elementary (school property).The City would contribute minor funding for signage and striping, also through force account. The La Porte Independent School District personnel are very much in favor of this project as is the City of Shoreacres. Staff Recommendation: Staff recommends that Council consider approval of the proposed Resolution supporting the City's application to the Texas Department of Transportation, Safe Routes to School Program. Action Required by Council: Consider approval of the Resolution as described above. Availability of Funds: General Fund _ Capital Improvement Escrow Funds Account Number: Water/Wastewater _ General Revenue Sharing N/A . Funds Available: YES NO jd jp~j-z. , w John E. Joerns, Acting City Manager Date e e CITY OF LA PORTE RESOLUTION NO. 02- .3 '1 A RESOLUTION OF THE CITY OF LA PORTE APPROVING THE SUBMITTAL OF AN APPLICATION TO THE TEXAS DEPARTMENT OF TRANSPORTATION SAFE ROUTES TO SCHOOL PROGRAM FOR A PROJECT NOMINATION PROVIDED BY TRANSPORTATION CODE 1201.614, ENACTED BY THE TEXAS LEGISLATURE. WHEREAS, the City of La Porte, Texas desires to submit an application to the Texas Department of Transportation Safe Route to School Program for provision of a safe route to school along SH Business 146, from Fairmont Parkway to the end of SH Spur 501, located primarily within the corporate limits of the City of La Porte; and. WHEREAS, the Safe Routes to School Program is designed to improve the bicycle and pedestrian safety of school age children; and WHEREAS, the Program proposed will be beneficial to school children and residents of the City of La Porte by reducing the potential for child injuries and fatalities; and WHEREAS, the Program proposed would encourage walking and bicycling among students; and WHEREAS, the City desires to establish its commitment to pledge funding to assist the Program in accordance with the Texas Safe Route to School Program guidelines as delineated in the accompanying application, should the project be approved; THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LA PORTE that the City Manager is authorized to execute all documents necessary for the submission of the project designated and attached hereto. PASSED AND APPROVED, this 28th day of October 2002. ~ OF LA PORTE By: Norm~ Mayor ATTEST: ~;/A4-A.auI Mart a Gillett, City Secretary APPROVED AS TO FO~M~ ~t/~ Knox W. Askins, City Attorney ~.t' . e e \ \.',....... '-- ~......~.... - e . REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: N/A Agenda Date Requested: October 28 2002 ADDroDriation Stephen Barr . Department: Account Number: Report: Resolution: Ordinance: X Amount Budgeted: -0- Exhibits: ()rriin::mcp. Amount Requested: Exhibits: Agreement Budgeted Item: YES NO SUMMARY & RECOMMENDATION In September, the City was approached by Harris County regarding surplus funds for projects that could be quickly accomplished prior to the Harris County deadline for fund expenditures in April 2003, Staff submitted 2 projects that were subsequently conditionally approved. totaling $250,000, The agreement before you with Harris County is for a playground project at Little Cedar Bayou Park. The playground will provide recreation for special populations and other children who access the Little Cedar Bayou Park. Harris County will obtain the playground and install it through the RFP process. The City will provide administrative oversight for the project through force account efforts, Funding for the project in the amount of $100,000 will be provided by Harris County Community Development Block Grant money. The City is not required to provide any capital expenditure for this project, however, the City will commit $25,000 budgeted in the FY 02-03 Capital Improvement budget for additional improvements to park service equipment and trail improvements at Little Cedar Bayou Park, Staff Recommendation: Staff recommends that Council consider approval of the proposed Agreement between the City of La Porte and Harris County for Little Cedar Bayou Park Improvements Project. Action Required by Council: Consider approval of the Agreement as described above. Availability of Funds: General Fund WaterlWastewater ~ Capital Improvement _ General Revenue Sharing Escrow Funds N/A Account Number: 015-9892-???-1100 Funds Available: --1L- YES NO /(J~k. . John E. Joerns, Acting City Manager Date e e ORDINANCE NO. 2002- ~5~~ AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY, REGARDING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING OF PLAY EQUIPMENT FOR LITTLE CEDAR BAYOU PARK; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place, and subject of this meeting of the City Counc.il 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. . .!,~":' ," .:::=; . e e Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 28TH day of October 2002. CITY OF LA PORTE By: Jt~4L- Norman L. Malone, Mayor ATTEST: LfrJd1:!.l4.- ./1thl/ Martha Gillett, City Secretary APPROVED AS TO FORM: I .,~JttJ We~ Knox W. Askins, City Attorney e OFFICE OF HOUSING & ECONOMIC DEVELOPMENT 8410 Lantern Point Houston, Texas 77054 Tel: 713-747-0132 Fax: 713-578-2190 D~I' "-v lj I.'; /.'fJu2 November 26, 2002 Mr. Norman Malone Mayor, City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 Dear Mr. Malone: RE: The Little Cedar Bayou Park Improvements Project Project No. 2002-101 Enclosed is the executed Agreement between Harris County and 'the City of La Porte for the Little Cedar Bayou Park Improvements project using Community Development Block Grant funds, Please contact Daniel Adame at (713) 747-0132 if you have any questions. David Turkel Director DBT/ng Enclosure G:\gmsbare\QAIDg\ex....ted ~_Ccdar_Bayou_Park_cxcc_ogn:cmomJIr,doc 2002-101 e e AGREEMENT BETWEEN HARRIS COUNTY AND CITY OF LA PORTE FOR THE LITTLE CEDAR BAYOU PARK IMPROVEMENTS PROJECT THIS AGREE\1ENT is entered by and between Harris County, a body politic and corporate under the laws of the State of Texas, herein called the "Grantee," and the City of La Porte (the City), a body politic and corporate under the laws of the State of Texas, herein called the "Subrecipient" . WHEREAS, the Grantee has applied for and received funds from the United States Government under Title I of the Housing and Community Development Act of 1974, Public Law 94-383, application number B-2002-UC-48-0002, CD2002-1 01; WHEREAS, the Grantee wishes to engage the Subrecipient to assist the Grantee in utilizing such funds; . WHEREAS, the Subrecipient shall insure recognition of the role of the Grantee in providing services through this contract. All activities, facilities, and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the Subrecipient will include reference to Harris County Office of Housing and Economic Development (RCORED) for the suppon provided herein in all publications made possible with funds made available under this contract. NOW, THEREFORE, in consideration ofthe mutual covenants and agreements herein contained, it is agreed between the parties hereto that: I, SCOPE OF SERVICE A. Activities The Subrecipient will be responsible for ,administering a Comm~nity Development Block Grant (CDBG) Fiscal Year 2002 City of La Porte Little Cedar Bayou Park Improvements Project (the "Project") in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds, Such Project will include the partial funding of new playground equipment in the Little Cedar Bayou Park. The City of La Porte qualifies for the receipt and expenditure of Community Development Block Grant funds because the area served contains a proportion of low and moderate income persons that meets one of the criteria for national objectives se,t out in 24 CFR 570.208 (a) (1 )(2). e e Program Delivery Activity: The Project will partially fund the purchase and installation of new ADA compliant playground equipment in the Little Cedar Bayou Park located in the City of La Porte. ' General Administration Within 30 days after the date this Agreement is executed by both parties the Grantee through the Harris County' Public Infrastructure Department will solicit proposals in accordance with Attached Exhibit A guidelines, Upon receipt of the proposals for the Project, Grantee will determine the lowest and best proposal for the construction of the Project. In the event the lowest and best bid for the construction of the Project is an amount that would result in the cost of the Project being equal to or less than the sum of $100,000.00, Grantee will award the contract in accordance with Harris County guidelines. In the event the lowest and best bid for the construction phase of the Project is an amount in excess of the sum of $95,000,00, Subrecipient shall have the following three (3) options: 1, Subrecipient may notify Grantee and agree in writing to pay the additional cost of the Project. In the event the Subrecipient agrees in writing to pay the additional costs, then and in that event the Grantee will proceed to let the contract and continue with the construction of the Project. If the Subrecipient fails to agree in writing to pay said additional ~osts, then in that event, the Subrecipient may reject all bids and elect not to proceed with the letting of the contract and terininate the Project without any further obligations to Grantee; or 2, Subrecipient may notify Grantee to negotiate with the Grantee for Grantee to agree in writing to reduce or delete specific items' in the bid proposal so that bids will be within the amount of available construction funds, In the event Grantee agrees in writing to reduce or delete items in the bid proposal, the Grantee will re-bid the project and proceed as if it were the original bid; or 3. Subrecipient may reject all bids and elect not to proceed with the letting of the contract and terminate the Project, giving the Grantee written notice of its termination. The project contractor shall furnish, deliver, and install one 4'-0" X 8'-0" temporary project sign according to Harris County specifications, The Subrecipient will ensure that the specifications are made part of the project manual and the cost of the project sign is i!lcluded in all bids, 2 e . Within thirty (30) days after notification by Grantee to Subrecipient that the bid has been approved, the contract shall be awarded to the lowest and best 'bidder, in accordance with the usual and customary procedures of the Grantee, Grantee will contract directly with the contractor, incorporating all requirements of this Agreement therein, The Grantee may terminate this Agreement without cause, at any time prior to the letting of the contract for construction of the Project, by written notice to the Subrecipient, and the Subrecipient shall have no obligation thereurtder except to return to Grantee the funds paid to the Subrecipient, if any, by Grantee pur$uant to this Agreement. During the construction of the Project, Grantee and Subrecipient shall have the right to review all documents, maps, plats, records, photographs, reports or plans affecting said construction. . B, Performance Monitoring The Grantee will monitor the performance of the Subrecipient against goals and performance standards required herein, Substandard performance as determined by the Grantee will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated pursuant to 24 CFR.85.43, II. TIME OF PERFORMANCE Services of the Subrecipient shall start within 7 days after the date of this Agreement and shall terminate when the Project is completed. In addition; the Subrecipient's covenants and Agreements shall extend for five (5) years after the funds provided for this Project are fully spent, in accordance with 24 CFR 570.505 and with applicable OMB circulars. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed One Hundred Thousand and Noll 00 Dollars($IOO,OOO.OO), Draw downs for the payment of eligible expenses shall be made against the line item budget specified in Exhibit B in accordance with performance. Expenses for general administration shall also be paid against the line item budget specified in Exhibit B and in accordance with performance, The Grantee will make direct payments to the contractor in accordance with Harris County guidelines. Invoices must be submitted on or before the fifteenth working day of the month for eligible costs incurred during the preceding month, and shall be on a' form approved by Harris County Auditor. Prior to payment all invoices must be approved by the HCOHED and the Harris County Auditor. (A standard AIA form is acceptable,) 3 e e The Grantee has no County funds for the payment of services to be rendered under this Agreement. It is expressly understood that Grantee's obligation under this Agreement is contingent upon receipt .of funds for such purpose from the U.S. Department of Housing and Urban Development (HUD) , by virtue of the above mentioned Grant(s). Accordingly, notwithstanding anything herein to the contrary, the maximum liability of the Grantee under this Agreement, shall not exceed $100,000.00 or the amount actually received by the Grantee from HUn pursuant to the Grant, whichever is less, and Subrecipient, by execution of this Agreement, acknowledges its understanding of this fact. The Subrecipient understands and agrees that reimbursement for costs under this Contract shall be in accordance with all applicable federal rules, regulations, cost principles, and other requirements relating to reimbursement with Housing and Urban Development (HUD) grant funds. The County shall pay for only those costs that are allowable Under said rules, regulations, cost principles and requirements.' The Subrecipient agrees to repay County in full for any costs paid by County under this contract that are disallowed or determined to have been ineligible for payment with HUD grant funds. V. NOTICES Communication and details concerning this contract shall be directed to the following contract representatives: Grantee Subrecipient David B. Turkel, Director Harris County Office of Housing And Economic Development 8410 Lantern Point Houston, Texas 77054 Mr. Norman Malone Mayor, City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 VI. SPECIAL CONDITIONS The Subrecipient agrees to comply with the requirements of 24 C.F.R. Part 570 and all federal regulations and policies issued concerning the CDBG program. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. VII. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this Agreement, including Executive 4 e e Order 12372, governing the review and coordination of Federally assisted programs and projects. B. Independent Contractor Subrecipient shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of Grantee. Subrecipient shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, . and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, sub-Subrecipients, program participants, licensees or invitees. The doctrine of respondeat superior shall not apply as between Grantee and Subrecipient, its officers, members, agents, servants, employees, sub-Subrecipients, program participants, licensees or invitees, and nothing herein shall be construed as creating a partnership or joint enterprise between Grantee and Subrecipient. It is expressly understood and agreed that no officer, member, agent, employee, sub-Subrecipient, licensee or invitee of the Subrecipient, nor any program participant hereunder, is in the paid service of Grantee and that Grantee does not have the legal right to control the details of the tasks performed hereunder by Subrecipient, its officers, members, agents, employees, sub-Subrecipients, program participants, licensees or invitees. Grantee shall in no way nor under any circumstances be responsible for any property belonging to Subrecipient, its officers, members agents, employees, sub-Subrecipients, program participants, licensees or invitees, which may be lost, stolen, destroyed or'in any way damaged. C. Workers' Compensation The Subrecipient shall provide Workers' Compensation Insurance coverage for all employe~s involv,ed in the performance of this Agreement. Subrecipient must provide to HCOHED a Certificate of such insurance. Subrecipient agrees' to require any sub- Subrecipients to carry Workers' Compensation Insurance coverage for all employees involved in the. performance of this Agreement. The Subrecipient shall also abide by the Contract Work Hours and Safety Standards Act of 1962 (40 U.S.C. 327 et seq.). D. Insurance and Bonding Subrecipient will obtain and maintain during the term of this Agreement public liability and automobile liability insurance covering all risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this Agreement. The amouI').ts of such insurance shall not be less than the maximum liability which can be imposed on Grantee under the laws of the State of Texas. At present, such amounts are as follows: 5 .e e Bodily injury or death, per person $100,000 Bodily injury or death, per occurrence' $300,000 Property damage, per occurrence $100,000 Subrecipient agrees that such insurance amounts shall be revised upward at Grantee's option and that Subrecipient shall revise such amounts within 30 days following n~tice to Subrecipient of such requirements. Subrecipient will submit to Grantee documentation that it has obtained insurance coverage as required in this contract within 30 days of the execution of this contract and prior to payment of any monies hereunder. Subrecipient will comply with the insurance and bonding requirements of OMB Circular A-102. E. Grantor Recognition The Subrecipient shall insure recognition of the role of the grantor agency in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. F. Amendments Grantee or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Grantee's governing body. Additionally, Grantee may, in its discretion, amend this Agreement to conform with federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendment results in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be effected only by written amendment signed by both Grantee and Subrecipient. G. Suspension or.Termination Either party may terminate this Agreement prior to the award of the installation contract by Subrecipient, as described above, by giving written notice to the other party of such termination and specifying the ef~ective date thereof at least 30 days before the effective 6 e' e date of such termination. Partial terminations, including of the Scope of Service in Paragraph IA above, may be undertaken only with the prior approval of Grantee. Grantee may also suspend or terminate this Agreement, in whole or in part, if Subrecipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Grantee may declare the Subrecipient ineligible for any further participation in Grantee Agreements, in addition to other remedies as provided by law. Additionally, in the event there is probable cause to believe the Subrecipient is in noncompliance with any applicable rules or regulations, the Grantee may withhold up to 15 percent of said Agreement funds until such time as the Subrecipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. Termination, or expiration, of this Agreement shall not relieve Subrecipient of liability for any breach ofthis Agreement that occurs prior to such termination or expiration. . H. Reversion of Assets Upon expiration of the term of this Agreement, the Subrecipient shall transfer to the Grantee any CDBG funds on hand at the time of expiration which were not used in performance of the project and any account receivable attributable to the use of CDBG funds. Vill. ADMINlSTRATNEREOUIREMENTS A. Financial Management 1. Accounting Standards The Subrecipient agrees to comply with Subpart C of OMB Circular A-I02 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Subrecipient shall administer its program in contormance with OMB Circulars A-87 and the applicable sections of 24 C.F.R. Part 85, "Uniform Administrative Requirements for Grants and Cooperative agreements to State and Local Governments," for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record-Keeping 1. Records to be Maintained 7 e e The Subrecipient shall maintain all records required by the federal regulations specified in 24 C.F.R. 570.506 and that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 C.F.R. 570.502, and OMB Circular A-B3; and g. Other records necessary to document compliance with Subpart K of24 C.F.R. Part 570. 2. Retention The Subrecipient shall retain all records pertinent to expenditures incurred under this Agreement for a period of 5 years after the termination of all activities funded under this Agreement, or after the resolution of all Federal audit findings, which ever occurs later. Records for non-expendable property acquired with funds under this Agreement shall be retained for 5 years. after final disposition of such.. property. Records for any displaced person must be kept for 5 years after he/she. has received final payment. Subrecipient must also comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the above-described periods, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the above-described periods, whichever occurs later. 3. Reports The Subrecipient shall furnish reports to the Grantee, which include, but may not be limited to the following, if applicable: A. Payment Request submitted monthly to Grantee. B. Weekly Payroll Reports from General Contractors and all Subcontractors. 8 e e ~onthly reports are to be submitted within 15 working days of the end of the reporting periods. The quarterly performance reports are due within 15 days after the end of the previous quarter and the annua~ performance report is due within one month after the end of the contract period. Failure to comply with the reporting requirements of this Article shall be a material breach of the contract and funding will be withheld from the Subrecipient until such time as the reports are submitted. The Subrecipient agrees to cooperate in periodic site visits and annual program and financial monitoring visits which will be conducted by the HCOHED staff and/or the Harris County Auditor's staff. ~. Property Records The Subrecipient shall maintain real property inventory records, which clearly identify properties purchased, improved or sold. Properties retained shall contin1:le to meet eligibility criteria and shall conform to the "changes in use" restrictions specified in 24 C.F.R. 570.503(b)(8). 5. NationalObiectives The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this Agreement meet one or more of the CDBG program's national objectives-I) benefit low/moderate income persons, 2) aid in the prevention or elimination of slums or blight, 3) meet community development needs having a particular urgency - as defined in 24 C.F.R. 570.208. 6. Close-Outs Subrecipient's obligation to the Grantee shall not end until all close-out requirements described in 24 C.F.R. 85.50 are completed to the satisfaction of the HCOHED and the Harris County Auditor. Activities during this close-out period shall include, but are not limited to, making final payments, disposing of program assets, including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee, and determining the custodianship of records. 7. Audits 8:- Inspections All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, its designees or the Federal Government, at any time during normal business hours, as often as the Grantee or other agency 9 e e deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. Subrecipient hereby agrees to have an annual agency audit conducted in accordance with Generally Accepted Governmental Auditing Standards (the "Yellow Book"), and OMB Circular A-133. The audit must include a statement regarding compliance with Federal Regulations, including national objectives of the program. C. Reporting and Payment Procedures 1. Budgets , . The Subrecipient has submitted a detailed budget (see Exhibit B) in a form and content prescribed by Harris County Auditor. The Grantee and the Subrecipient may agree to revise the budget from time to time in accordance with existing county policies. 2. Program Income The Subrecipient shall report all program income as defined at 24 C.F.R. 570.500(a) generated by activities carried out with CDBG funds made available under this Agreement. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 C.F.R. 570.504. By way of further limitations, the Subrecipient may use such income during the contract period for activities permitted under this Agreement and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Grantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the Grantee. 3. Indirect Costs If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Grantee share of administrative costs and shall submit such plan to the Grantee for approval. 4. Payment Procedures The Grantee will pay to the Subrecipient funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget .and county policy concerning payment. With the exception of certain advances, payments will be made for eligible expenses actually incurred by 10 e e the Subrecipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Subrecipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this Agreement for costs incurred by the Grantee on behalf of the Subrecipient. D. Procurement 1. Compliance. The Subrecipient shall comply with state law concerning the purchase of equipment and services. Any real or personal property under Subrecipient's control that was acquired or improved in whole or in part'with CDBG funds must either be: a. Used by the Subrecipient to meet one of the national objectives in 24 C.F.R. 570.200(a) (2) and (3) until 5 years after expiration or termination of the Grantee's Agreement with HUD; or b. Transferred to the Grantee; or c. Disposed of in a manner, consistent with 24 C.F.R. 85.31, which results in the amount of the then current fair market value of the property ~ess any portion thereof attributable to expenditures of non-CDBG funds for acquisition thereof, or improvements to, the property being reimbursed to the Grantee. Such reimbursement is not required if disposed of more than 5 years after the expiration or termination of this Agreement. d. Further, if within 5 years of the termination or expiration of this Agreement, the Subrecipient ceases to use any or all personal property attributable to CDBG funds to meet a national objective, the personal property shall, in accordance with 24 C.F.R. 85.32, either revert to the Grantee or be disposed of in accordance with the applicable federal rules and regulations, including but not limited to OMB Circular A- 102, Subpart C. e. The Grantee in its sole discretion shall determine whether or not the Subrecipient use of any property meets a national objective contained in 24 C.F.R. 570.200(a) (2) and (3). f. After the expiration of 5 years, the Subrecipient shall have no obligation to comply with this section regarding real or personal property. 11 e e 2. OMB Standards The Subrecipient shall procure materials in accordance with the requirements of Subpart C of OMB Circular A-I02, Procurement Standards, and shall. subsequently follow Subpart C, Property Management Standards, covering utilization and disposal of property. 3. Travel Subrecipient must comply with Harris County travel guidelines and obtain written approval from the HCOHED for any travel outside the Grantee's service area with funds provided under this Agreement. 4. Relocation. Acquisition and Displacement The Subrecipient agrees to comply with 24 C.F.R. 570.606 relating to the acquisition and disposition of all real property utilizing grant funds, and to the displacement of persons, businesses, non-profit organizations and farms occurring as a direct result of any acquisition of real property utilizing grant funds. The Subrecipient agrees to comply with applicable Grantee Orders, and Policies concerning displacement of individuals from their residences, including The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. IX. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title vm of the Civil Rights Act of 1968 as amended, Section 109 of Title 1 ofthe Housing and Community Development Act of 1974, Section 504 of the~ehabilitation,Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086 and all other applicable requirements of24 C.F.R. Part 570, Subpart K. 2. Nondiscrimination The Subrecipient will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age marital status, or status with regard to public assistance. The Subrecipient will take affirmative action to insure that all employment practices are free from such discrimination. Such employment 12 e e practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Subrecipient setting forth the provisions of this nondiscrimination clause. Subrecipient shall also abide by Title IX of the Education Amendments of 1972 (20U.S.C. - 1681 et seq.) which prohibits sex discrimination in federally assisted education programs. 3. Section 504 The Subrecipient agrees to comply with any federal regulations issued pursuant to Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706), which prohibits discrimination against the handicapped in any federally assisted program. The Grantee shall provide the Subrecipient with any guidelines necessarY for compliance with that portion of the regulations in force during the term of this Agreement. . 4. Drug Free Workolace All profit or non-profit agencies or organizations receiving state or federal grant funds under the official sponsorship of Harris County must certify on an annual basis their compliance with the requirements of the Drug Free-Workplace Act of 1988. Employees are specifically prohibited from manufacturing, distributing, possessing, purchasing, and using illegal drugs or controlled substances in the workplace or in any other facility, location or transport in which the employee is required to be present in order to perform his or her job function. B. Affirmative Action 1. Approved Plan The Subrecipient agrees that it shall be cominitted to carry out pursuant to the Grantee's specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1965. The Grantee shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation of such program. The Subrecipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 2. WIMBE The Subrecipient will use its best efforts to afford minority- and women-owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the term "minority and 13 e. e female business enterprise" means a business at least 51 percent owned and controlled by minority group members or wOmen. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The Subrecipient shall furnish and cause each of its sub-Subrecipients to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or-other authorized federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. . 4. Notifications The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other agreement or understanding, a notice, to be provided by the agency contracting officer, advising "the labor union or worker's representative of the Subrecipient's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. EEO/AA Statement The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, st~te that it is an Equal Opportunity or Affirmative'Action Employer, as applicable. 6. Subcontract Provisions The Subrecipient will include the provisions of Paragraphs vrn A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each sub-Subrecipient or vendor. C. Employment Restrictions 1. Prohibited Activity The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sectarian, or religious activities; lobbying, political patronage, and nepotism activities. 14 e e 2. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participant's health or safety. 3. Labor Standards The Subrecipient agrees to comply with the requirements of the Secretary of Labor issued in accordance with the provisions of Contract Work Hours and Safety Standards Act [40 U.S.C. 327-330] as supplemented by Department of Labor regulations, the Copeland "Anti-Kickback" Act [18 U.S.C 874], the Davis- Bacon Act [40 U.S.C. 276(a) to a-7], and all other applicable federal, state and local laws and regulations pertaining to labor standards, insofar as those acts apply to the performance of this Agreement. The Subrecipient shall maintain documentation which demonstrates compliance with hour and wage requirements of this section. Such documentation shall be made available to the Grantee for review upon request. The Subrecipient shall also abide by Chapter 11 of Title 18 of the U.S. Code (18 U.S.C. 201-224) which prohibits a number of criminal activities, including bribery, graft and conflict of interest. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property designed for residential use for less than 8 households, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or work financed in whole or in part with assistance provided under this Agreement, shall comply with federal requirements adopted by the Grantee pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 C.F.R., Parts 1, 3, 5, and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to, require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 4. "Section 3" Clause a. Compliance Compliance with the provisions of Section 3 of the Housing and Urban Development Act of 1968, as amended, the regulations set forth in 24 15 e e C.F.R. Part 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement, shall be a condition of the federal financial assist~ce provided under this Agreement and binding upon the Grantee, the Subrecipient and any sub-Subrecipients. Failure to fulfill these requirements shall subject the Grantee, the Subrecipient and any sub- Subrecipients, their successors and assigns, to those sanctions specified by the Agreement through which federal assistance is provided; and as set out in 24 C.F.R. Part 135, Subpart O. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. The Subrecipient further agrees to comply with these "Section 311 requirements and to include the following language in all subcontracts executed under this Agreement. liThe work to be performed under this contract is a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part, by persons residing in the areas of the project." The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. b. Notifications The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. c. Subcontracts The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the sub-Subrecipient is in violation of regulations issued by the Grantor Agency. The Subrecipient will not subcontract with any sub- Subrecipient where it has notice or knowledge that the latter has been 16 e e found in violation of regulations under 24 C.F.R. Part 135 and will not let any subcontract unless the sub-Subrecipient has first provided it with preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee under this Agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished ,promptly to the Grantee. . ., Hatch Act The Subrecipient agrees that no funds provided, nor persorinel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code. 3. Conflict of Interest The Subrecipient agrees to abide by the provisions of 24 C.F.R. 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The Subrecipient further covenants that in the performance of this Agreement no person having such a financial interest shall be employed or retained by the Subrecipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official ,of the Grantee, or of any designated public agencies or subrecipients'that are receiving funds under the CDBG Entitlement program. The Subrecipient also agrees to abide by 18 U.S.C. 286, which provides for conspiracy to defraud the Federal Government with Respect to Claims. In addition, the Subrecipient will also abide by the False Claims Act (31 U.S.C. 3729 et seq.), 18 U.S.C. 287 relating to False, Fictitious and Fraudulent Claims, 18 V.S.C. 245 Federally Protected Activities, 18 U.S.C. 1001 regarding General Statements or Entries, the Program Fraud Civil Remedies Act (31 U.S.C. 3801- 3812), the Federal Claims Collection Act of 1966 (31 U.S.C. 952) as amended by the Derby Collection Act of 1982, the MeritoriQus Claims Act (31 U.S.C. 3702), the Tucker Act (28 U.S.C. 1346, 1491, and 2501), the Wunderlich Act (41 U.S.c. 17 e e 321-322), the Anti-Deficiency Act (31 US.C. 1341), and Section 208(a) of the Intergovernmental Personnel Act of 1970, as amended. 4. Subcontracts a. Approvals The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the written consent of the Grantee prior to the execution of such agreement. b. Monitoring The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. c. Content The Subrecipient shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. d. Selection Process The Subrecipient shall undertake to insure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process. Subrecipient must adopt and utilize written selection criteria for use in the selection of subcontractors, which selection criteria must conform to the procurement requirements of24 C.F.R. 85.36. 5. Copyright If this Agreement results in any copyrightable material, the Grantee and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work for government purposes. 6. Religious Organization The Subrecipient agrees that funds provided under this Agreement will not be utilized for religious activities, to promote religious interests, or for the 18 e e benefit of a religious organization in accordance with the federal regulations specified in 24 C.F.R. 570.2000). x. ENVIRONMENTAL CONDITIONS A. Air and Water The Subrecipient agrees to comply with the following regulations insofar as they apply to the performance of this Agreement: · Clean Air Act, 42 US.C. 1857, et seq., and 9 7401 et seq. · Clean Water Act, 33 U.S.C. 1368 · Executive Order 11738 · Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., and 1318, relating to inspection, monitoring, entry, reports, and information, and all regullitions guidelines issued thereunder. · Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. · National Environmental Policy Act of 1969 (42 U.S.C. 432 et seq.; as amended) · HUD Environmental Review Procedures (24 C.F.R., Part 58). B. Flood Disaster Protection The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 (p.L.-2234) in regard to the sale, lease or other transfer of land acquired, , cleared or improved under the terms of this Agreement, as it may apply to the provisions of this Agreement. C. Lead-Based Paint The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 C.F.R. 570.608, and 24 C.F.R. Part 35, and in particular Sub-Part B thereof. Such regulations pertain to all HUD-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning, and of the advisability and avail~bility of blood-level screening for children under 7 years of age. D. Historic Preservation The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 C.F.R., Part 800, Advisory Council on Historic Preservation 19 e e Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. In general this requires concurrence from the Texas Historical Commission and Antiquities Committee for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, State, or local historic property list. E. Wildlife Protection The Subrecipient agrees to comply with the requirements of the Endangered Species Act of 1973 as listed in 50 C.F.R. 17.11 and 50 C.F.R. Part 451, the Lacey Act (18 U.S.C. 42), the Migratory Bird Treaty Act (16 U.S.C. 703:'12), the Fish and Wildlife Coordination Act (16 US.C. 661-667e), Section 4(f) of the Department of Transportation Act (49 U.S.C. 1653(f), the Fec;leral Water Pollution Control Act (33 U.S.C. 1251 et seq.), the Coastal Zone Management Act of 1972, as amended (16 U.S.C. 1451), and the Safe Drinking Water Act of 1974 (42 U.S.C. 300f to j-lO), insofar as they apply to the performance of this Agreement. 20 e e ,':1:;,' ,li {DC IN WITNESS WHEREOF, the Parties have executed this Agreement as of the _ day of , 2002. Harris County Attest. '----1 J1:, ~t( DAVID B. TL"RKEL, Director Harris County Office of Housing And Economic Development Approved as to Form and Legal Sufficiency: City of La Porte cting City Manager Attest:W:~~ t!tit Martha Gille , City Sec etary ~~~VEDAS~OFO~:l , ~-r)d ~/ Knox W. Askins, City Attorney 21 e e AUDITOR'S CERTIFICATE I hereby certify that funds are available in the amount of$100,000.00 to pay the obligation of Harris County under this contract. TOMMY J. TOMPKINS County Auditor 22 e e EXHIBIT A HARRIS COUNTY OFFICE OF HOUSTING AND ECONOMIC DEVELOPMENT SUBRECIPIENT CONSTRUCTION POLICIES These policies are intended to assist those public entities receiving Harris County Office of Housing and Economic Development Block Grant funds. They will facilitate the entity's understanding and compliance with applicable federal and county regulations, policies and processes where the entity is responsible for design, bidding and construction contract administration. If clarification is' needed, call Joseph L. Thompson at 713-747-0132. 1. If federal funds will be used to retain consultants, the entity must advertise Request for Qualification Statement (RFQ). The entity shall submit the draft RFQ for approval prior to advertisement. The responding consultant's SF 254 and 255 qualification statements must be submitted for review to Harris County Office of Housing and Economic Development (HCOHED) prior to commissioning the consultants. Upon approval by HCOHED, the entity may retain consultant(s). 2. The entity will advertise for bids and award contracts in compliance with the State of Texas bidding procedures and the Sections listed below from 24 C.F.R. 85: Section 85.20 Standards for Financial Management Systems (Except subparagraph a) Section 85.36 "Procurement," except paragraph (a) Section 85.42 "Retention and Access Requirements for Records" 3. The preliminary drawings must be within the previously approved project scope. All construction projects must comply with Harris County requirements and the policies and procedures of Harris County's Department of Public Infrastructure, Purchasing Agent, Auditor and HCOHED. 4. Entity will incorporate into the construction documents any and all Department of Housing and Urban Development requirements. Final documents must be approved by HCOHED. 5. Prior to award of contract, HCOHED will review the bid documents, the bidder's qualification statements, minority business pla~ and financial statements to ensure that the contractor has a good contracting record, adequate capitalization, equipment, and personnel to successfully complete the project, meets minority participation goals and that the bidder has not been debarred by HUD from working on federal contracts. 6. The entity, the consultant, and HCOHED will conduct a prebid meeting and a preconstruction conference with the contractor(s). 7. The entity shall, at its sole expense, furnish the necessary inspection personnel to assure itself of compliance with the construction contract. The Architect or Engineer of record will have final authority in all construction disputes. 8. The entity and contractor will be responsible for preparing monthly pay requests to be reviewed by the consultant prior to submittal for payment. Preparation will consist of a site meeting with the 23 e e consultant and the contractor's representative to accurately determine the percentage completion of various components of the work and time used. The entity, the consultant, and the contractor will be required to sign e~ch monthly estimate prior to being processed for payment. 9. All change orders must be approved in writing by the entity prior to any alterations or modifications of the work or specifications. The entity will be responsible for any increase in cost based on any change order required due to errors and/or omissions. Total aggregate Changes in Contract will not exceed twenty five percent of the original contract amount. 10. Entity will submit or cause to be submitted, weekly payrolls for general contractor and all subcontractors to HCOHED for review. HCOHED will review all payrolls and conduct worker interviews and will hold the general contractor responsible for compliance with labor, EEO and minority business requirements. The County through HCOHED reserves the right to withhold funds from the general contractor to compensate workers in accordance with the appropriate wage scales as promulgated by the U.S. Department of Labor. 11. The entity must submit the following documentation to HCOHED prior to award of the construction contract: > Copy of the bid advertisement. > Copy of the bid tabulations. > Copies of all bids submitted. > Copies of bidders' bid bonds or cashiers checks. > Copy of the minutes and attendance roster of the bid opening. > Consultant's recommendation of contractor. > Request authorization from HCOHED .to award project to lowest/best bidder. 12. The entity must submit the following documentation after award of contract: > Copy of the performance, payment and maintenance bonds. > Copy of "Certificate of Authority" issued by the State Board of Insurance of Texas for the surety company. Only companies listed in the Department of the Treasury circular #570 (most recent issue) will be accepted. > Certification of bid award by the City Council/Board. > Original copy of the executed contract between the successful bidder and the entity. > Copy of the purchase order. > Copy of subcontractor list. > Schedule of values based on standard Construction Specifications Institute (CSI) format (16 divisions) and given in labor and materials listed separately per line item including overhead and profit for each. > Construction schedule (Bar Chart or Critical Path Method). 13. The entity will not be permitted to perform any "force account work", wherein the entity uses their own employees, materials., and/or equipment. All portions of construction work will be subject to the competitive bidding process referenced above. 14. The entity's contractor shall furnish, deliver, and install one 4'.0" X 8'-0" temporary project sign' according to Harris County specifications. The entity will ensure that the specifications will be made part of the project manual and the cost of the project sign will be included in all bids. 15. The entity's contractor, on all buildina projects, shall furnish, deliver, and install one 18" X 24" bronze plaque built according to Harris County specifications. The entity will ensure that the specifications will be made part of the project manual and the cost of the plaque will be included in all bids. 24 e It EXHIBIT B BUDGET CATEGORY HCQHED MATCH TOTAL Construction 95,000 -0- -O- S uryey 2,0000 -0- -0- Testing 2,0000 -0- ,.0- Inspection 1,000 ' -0- -0- Total $100,000 $-0- $100,000 CDBG 2002 - S 1 00,000 25 e e EXHIBIT C Certification for Contracts, Grants, Loans and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal 'contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, sub grants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is material representation of fact upon which reliance was placed w~en this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more that $100,000 for each such failur~. Executed this day of ,20 . BY~ (Type or Print Name) (Title) Covered Action: (Program, Project or Activity) 26 e e Presenfedio ~' Court THE STATE OF TEXAS ~ ~ ~ NOV 0 5 2002 APPROVE Recorded Val. Page COUNTY OF HARRlS The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris Coun~ Administration Building in the City of Houston, Texas, on the day of Hu'~ \) '5 200 ,2002, with the following members present, to-wit: Robert Eckels El Franco Lee James Fonteno Steve Radack Jerry Eversole County Judge Commissioner, Precinct No. 1 Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 and the following members absent, to-wit: J..;d~ quorum, when among other business, the following was transacted: . . , constItutmg a ORDER AUTHORIZING EXECUTION OF AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE FOR THE LITTLE CEDAR BAYOU PARK IMPROVEMENTS PROJECT Commissioner introduced an order and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, caming with it the adoptjqn 9!:~e order, prevailed by the following vote: .. . .." J. 1.01'- ....'...... '-. "(::5 f;.!:~ ,0 ~'):;t'1:n AYES '!. '...~ .::..:'.,,~': L ! L_.1 !, : ". "I :l.:.::;~ NAYS' '.' .. "!. :.:,' LJ L_i . C:.:.:: ";":. j: ...::.. .:' l- I rO.l . 1 ABSTENTIONS: C;::,:;',. !-,":' ::, ~ .; l~J iJ The County Judge thereupon acii%1ili:cg((tli~l th r inotioHad dQ and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: RECITALS: WHEREAS, the County has applied for and received funds from the United States Government under Title 1 of the Housing and Community Development Act of 1974, Public Law 97-383 application number B-2002-UC-48-0002; CD2002-101 WHEREAS, the County wishes to engage the City of La Porte to assist the County in utilizing such funds; WHEREAS, the City of La Porte shall insure recognitipn of the role of the County in providing services through this contract. All activities, facilities, and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the ,City of La Porte will 27 e e include reference to Harris County Office of Housing and Economic Development ("HCOHED") for the support provided herein in all publications made possible with funds made available under this contract. NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS THAT: Section 1: The recitals set forth in this order are true and correct. Section 2. The Agreement is approved and the County Judge of Harris County or his designee is authorized to exeCute an Agreement between Harris County and the City of La Porte Little Cedar Bayou Park Project, in the amount of $100.000.00. The Agreement is attached hereto and made a part hereof for all purposes. LCBPark:e:lqa\jt\cdbg02 02-101 28 . . e e Requested By: Appropriation Agenda Date Requested: October 28 200 Stephen Barr Department: Account Number: N/A N/A Report: Resolution: Ordinance: X Amount Budgeted: -0- Exhibits: (')rrlin~nr:A Aw~rrling Rirl Amount Requested: -0- Exhibits: AQreement with Harris County Budgeted Item: YES NO Exhibits. SUMMARY & RECOMMENDATION As discussed in the October 14m Council meeting, the Texas General Land Office is ready to begin final design and permitting of the Sylvan Beach Shoreline Protection project. Sylvan Beach Park is Harris County property. Harris County has agreed to participate in the project and an agreement is being presented to Council tonight that will reimburse the City for ~ of its obligation in the State contract, or $6,375. Participation in this project does not obligate either the City or Harris County to any future activity regarding actual construction of the pro~ect. The City's share of the contract with the Texas General Land Office, was approved at the October 14 meeting. Staff Recommendation: Staff recommends that Council consider approval of the proposed Agreement between the Harris County and the City of La Porte to reimburse the City for ~ of its obligation under the State contract for final design and permitting of the Sylvan Beach Shoreline Protection project. Action Required by Council: Consider approval of the Agreement with Harris County as described above. Availability of Funds: General Fund _ Capital Improvement Escrow Funds Account Number: WaterlWastewater _ General Revenue Sharing N/A Funds Available: YES NO enda John E. Joerns, Acting City Manager /c:Jll3ID2, Date . e ORDINANCE NO. 2002- d5'11 AN ORDINANCE AUTHORIZING AND APPROVING AN AGREEMENT BETWEEN THE CITY Of LA PORTE AND HARRIS COUNTY, REGARDING SYLVAN BEACH SHORELINE EROSION REMEDIATION; MAKING VARIOUS fiNDINGS AND PROVISIONS RELATING TO THE SUBJECT; fINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EffECTIVE DATE HEREOf. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place, and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preCeding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves, and confirms such written notice and the contents and posting thereof. e e Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 2S1H day of October 2002. CITY OF LA PORTE By: ~~~ Norman L. Malone, Mayor ATTEST: GfYJ t/Jiih ;/1111 Martha Gillett, City Secretary APPROVED AS TO FORM: Knox W. Askins, City Attorney ~g-~ COMMISSIONER . e October 16, 2002 AGENDA ITEM 1 0/22/02 ./" . - - . .~r '~'r--,_ r. " - , / ... ..\.. '. " p.." .I\: - \ .' .~.../ \. 1."1;'/ ,... .. I~'-' '... .. W... . '.. '(",. t' .:: 'C~~' ,~> .:'.t- '\-~., . r c;- .. .,. .,' t ~;\l " ,,~.) ..'. r::>) '-" -' ,~',,;' . '.:, ,',' ~ ',..Pj.' . \ "''':/') /"" ......\ .:' .- ":~':-_~' ft;~ ' f'.. . -.. \-" ",-. ~,s;,."..... ,.' \ /-. 't~.~":. " ~'-) ~.c. ~J \. ~"\ '..~ "r~1 \........."',;. .(..''7'.... .. .....~.... ... '. \"'~'" ."1': ' ''''''.7 L'~"" ." ,"., . .>- "~.( I~;~:r..~ d. ..'.,;0' .- -"""'--.' r:. tl \?-/ -_..--~ All Members of Commissioners Court Harris County Administration Bldg. 1001 Preston, 9th Floor Houston, Texas 77002 Dear Court Members: r ~. JIM FONTENO A:\NEX =:!6 14350 WALLlSVILLE ROAD HOUSTO?\. TEXAS nO.N (71314.55-~I04 , cC ;~-:_'. o r'''> ~ o <: n:.:' , c:" c.-.. ' r:t:. w " ~ -.~ .. -- ' ::::~:. -. c:: _- ::::.= ~ w .. U1 -;-: N I.... ~ ~EceBveD N:C.A. - PARKS JAM B 3 2003 Precinct Two Parks Department requests approval to provide partial funding in the amount of $6,375.50 for plans and specifications for shoreline improvements at Sylvan Beach Park (a county park in the City of La Porte). The City of La Porte and Harris County Precinct Two are splitting 15% of the cost for design plans. The State of Texas General Land office is funding 85% of the design documents. Attached are two original agreements between Harris County and the City of La Porte allowing for part'ial funding by Harris County. Please sign and execute this agreement. Thank you for your consideration of this request. Vote of the Court: Yes Sincerely, ~j-~ Abstain o o o n ~-- ,.-, L..J No o "I L.-l fl .-:::; ~ I '.- .' J:.:~..'ir.: i::~:~:;!S :-., U c'~ ;i ,. . L~:; c:: .,:.-, ;.'.:..-...,~:..::l Cc" -., ::- ~,:' - :~", Jim Fonteno, Commissioner Harris County, Precinct Two ~- . . CJ:r:'I;','. ~,'.... ._:......: JF/GS/bb Attachments cc: Mr. Elmo Wright, Mr, David Floyd, Mr. Gil Smith, Mr. Mike Greer Mrs. Shirley Jackson ~)~ Elmo Wright i I Jill t;"v Date . . ~ . . ~ ~-_. ,.,..~~. . .;;;iIf!/Z,~ U V'~ ~~--r ' Presented lD Commlssloners' Court NOV 1 9 2002 APPROVE L I 9- RIlCCI'dOO VrJ. ' Page e e C.OIl 'l'r", . Jif,r'-"'My - K:\IaporteSylvanBeachShoreline10-0Bfinal AGREEMENT THE STATE OF TEXAS ~ ~ ~ RECEIVED N.C.A. - PARKS JAN , 3 2003 COUNTY OF HARRIS This Agreement is made and entered into by and between Harris County, a body corporate and politic under the laws of the State of Texas, hereinafter called "County," and the City of La Porte, a body corporate and politic under the laws of the State of Texas, hereinafter called "City"; RECITALS: 1. It is to the mutual benefit of County and City to control, by the use of articulated mats, shoreline erosion at the County's Sylvan Beach Park within the incorporated area of the City, hereinafter called the "Project." 2. The City has previously entered into an agreement with the State of Texas General Land Office (the "GLO") performed a shoreline erosion study at the site of the Project and proposed three alternative approaches to control shoreline erosion at Sylvan Beach Park. 3. The GLO has now proposed that the City enter into an amendment of the current agreement under which the State will perform various services resulting in the development of a bid package including drawings and specification for the Project, which was one of the alternatives previously proposed, which amendment will require the City to make available 15% of the costs of such servIces. 4. The City is willing to enter into the prop~seci amendment if the County will make available one-half of the City's required contribution for the services to be added by the amendment, up to $6,375.50. 5. NOW, THEREFORE, for and in consideration of the mutual covenants, agreements and benefits to the parties herein named, it is agreed as follows: TERMS: 1. Within ninety (90) days after the City enters into an amendment to its agreement with the GLO under which the GLO agrees to perform services including the development of a bid package for the Project, the County shall deliver to the City its check in the amount of $6,375.50. Such funds shall only be used to fulfill the City's obligations added to the agreement by the amendment, and no County funds shall be delivered to the GLO unless the City delivers a matching amount of the City's funds. 2. The City shall make deliver to the County all documents, including but not limited to proposed drawings and specifications for the Project, received from the GLO under the amended agreement and shall, upon request, present to the GLO any comments that the County may make in e e K:\JaporteSylvanBeachShoreline1 D-DBfinal regard to such documents and/or the Project. The City shall not approve or comment to the GLO in regard to any documents provided to it by the State in regard to the Project unless such documents are approved by the Commissioner of Precinct Two of the County or that person's designee. 3 It is expressly understood and agreed that the County has available the maximum sum of $6,375.50 to satisfy its obligations under this Agreement, and the County shall not be obligated to expend more than that maximum sum. 4. No party hereto shall make, in whole or in part, any assignment of this agreement or any obligation hereunder without the prior written consent of the other parties hereto. 5. After completion of the services by the GLO provided for by the amendment to the City's Agreement with the GLO regarding the Project, or upon any termination of the City's Agreement with the GLO before completion of the services thereunder, the City shall deliver to the County its check in the amount of any funds provided by the County that were either not required to be provided to the GLO or to which the City is entitled to a refund from the GLO because they were in excess of one-half of the funds needed by the State as part ofthe City's share for the services added to the Agreement by the amendment. 6. At any time before the City has entered into an amendment with the GLO as contemplated by Section 1, the County may terminate this Agreement by notice the City, and the County shall have no further obligation hereunder. 7. All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed herein below or at such other address as the other party may have theretofore prescribed by notice to the sending party. Address for notice shall be as follows: CITY City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 Attn: Stephen L. Barr, Director of Parks & Recreation Department COUNTY: Harris County Harris County Administration Building 1001 Preston, 7th Floor Houston, Texas 77002 Attn.: Commissioner, Precinct 2 e e K:\IaporteSylvanBeachShoreline 1 0-08final 8. This instrument contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any modifications concerning this instrument shall be of no force and effect excepting a subsequent modification in writing, approved by the governing bodies and signed by all parties hereto. IN TESTIMONY OF WHICH, this agreement, in duplicate counterparts, each having equal force and effect of an original, has been executed on behalf of the parties hereto as follows, to-wit: a. It has on the _ day of NOV 1 9 2002 , 2002, been executed on behalf of the County by the County Judge of Harris County, Texas, pursuant to an order of the Commissioners Court of Harris County authorizing such execution. b. It has on the day of , 2002, been executed on behalf of the City by the Mayor and attested by its City Secretary, pursuant to ordinance of the City Council of the City of La porte authorizing such execution. APPROVED AS TO FORM: HARRIS COUNTY MIKE STAFFORD County Attorney B.J2 ~ C. tJ~ DON C. WlllTLEY Assistant County Attorney By ROBERT ECKELS, County Judge ATTEST CITY OF LA PORTE B~1aL-tJ:.iJ-' ,piPit By City secretary . ~ i 9 c,ity miX Vl ae €' ( Aflt.Pf/b-PU.S 'P.~M" . ' \ ~ 1\/,"""'_/ . \ ,~i1-. D/ AUDITOR'S CERTIFICATE . ~P1,-a-;l "J7?,' I hereby certify that funas are available in the amount of $6,375.50 to accomplish and pay the obligations of Harris County herein. ~~~<~ Tommy. p 'ns, Co ty Auditor e e K:\IaporteSylvanBeachShoreline10-08final THE STATE OF TEXAS COUNTY OF HARRIS ~ ~ Presented to Commissioners' Court NOV 1 9 2002 APPROVE R8CCIdad Vet Page The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the _ day of ~IOV 1 q 2llO2 , 2002, with the following members present, to-wit: Robert Eckels EI Franco Lee James Fonteno Steve Radack Jerry Eversole County Judge Commissioner, Precinct No. 1 Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 and the following members absent, to-wit: A,.J('J ~ a quorum, when among other business, the following was transacted: , constituting ORDER AUTHORIZING/APPROVING AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE Commissioner .............. that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, carrying with it the adoption of the order, prevailed by the following vote: Yes No Abstain Judge Eckels CV 0 0 Comm. Lee f3o" 0 0 Comm. Fonteno ~ 0 0 Comm. Radack ~ 0 0 Comm. Eversole ~ 0 0 The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and law-fully adopted. The order thus adopted follows: RECITALS 1. It is to the mutual benefit of Harris County and the City of La Porte to control, by the use of articulated mats, shoreline erosion at the County's Sylvan Beach Park within the incorporated area of the City, hereinafter called the "Project." 3. The City has previously entered into an agreement with the State of Texas General Land Office (the "GLO") performed a shoreline erosion study at the site of the Project and proposed three alternative approaches to control shoreline erosion at Sylvan Beach Park. 3. . The GLO has noW proposed that the City enter into an amendment of the current agreement under which the State will perform various services resulting in the development of a bid package e e ~:\IaporteSylvanBeachShoreline1 0-08final including drawings and specification for the Project, which was one of the alternatives previously proposed, which amendment will require the City to make available 15% of the costs of such servIces. 4. The City is willing to enter into the proposed amendment if the County will make available one-half of the City's required contribution for the services to be added by the amendment, up to $6,375.50. NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COUT THAT: The County Jud.ge is authorized to execute for and on behalf of Harris County, an Agreement by and between Harris County and the City of La Porte for funding the City of La Porte's share of a proposed amendment of an agreement between the City of La Porte and the Texas General Land Office providing for the creation of bid documents for the Project, said Agreement between the County and the City of L~ Porte being incorporated herein by reference for all purposes as though fully set forth word for word. . e .... REQWST FOR CITY COUNCIL AYDA ITEM Appropriation Agenda Date Requested: October 28, 2002 Requested By: Doug KneupperA J / Department: Planning VOVd Source of Funds: Fund 015 Account Number: 015-9892-846-1100 Amount Budgeted: $250,000 Report: _Resolution: _ Ordinance:_ Amount Requested: $200,500 Exbibits: Ordinance Letter from Robert Castille, Harris County Precinct 2 Agreement Between Harris County and City Budgeted Item: YES .. Summary and Recommendation Council has previously agreed in principle to joint venture the construction of Turning Lanes Along Fairmont Parkway with Harris County on a 50/50 basis. The proposed turning lane improvements are located at Brookwood, Farrington, and Willmont. The design of these turning lane improvements is currently 90% complete. Previously, Luella and Driftwood were considered for this project but have been dropped from consideration here because the County will be installing traffic signals and these two locations and turning lanes will be a part of the traffic signal installation. The County has prepared an Interlocal Agreement that establishes and formalizes the participation of the City and County. Per the agreement, the County will contribute up to $200,500 toward 50% of all costs of the project and to administer the design and construction of the project. The City will contribute 50% of all costs of the project up to $200,500. Project costs include engineering, construction, and construction support services (no additional right-of-way is needed for this project). It is expressly understood and agreed that the City and County both have available the maximum sum of $200,500 to satisfy obligations under this agreement. If the bids are greater than the $401,000 estimate, the agreement provides the following options: . County may provide the additional funds and proceed with project . Reject all bids and terminate this agreement . Reject all bids and re-advertise and bid the project again . Attempt to negotiate an amendment to this agreement to provide for payment of the additional costs Action Required by Council: Consider approval of an ordinance authorizing an Interlocal Agreement with Harris County for the construction of Turning Lanes Along Fairmont Parkway. Council A enda ~ ohn Joerns, Acting City Manager Jr.f~4 Date e e ORDINANCE NO. 2002- aSQD AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY, FOR LEFT TURN LANES AND TRAFFIC SIGNAL MODIFICATIONS AT FAIRMONT PARKWAY AND BROOlCWOOD, FAIRMONT PARICWAY AND FARRINGTON BOULEVARD, AND FAIRMONT PARKWAY AND WILMONT DRIVE, APPROPRIATING NOT TO EXCEED $200,500.00, TO FUND SAID CONTRACT, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum not to exceed $200,500.00 from the City of La Porte Fund 015 to fund said contract. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been 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. e e ORDINANCB NO. 2002- J.SCfO PAGE 2 Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 28th day of October, 2002. By: CITY OF LA PORTE ~~- Mayor ATTEST: Knox W. Askins, City Attorney HARRIS eoulTY DEPARTMENT OF PUBLIC INFRASTRUCTURE ENGINEERING DIVISION e 1001 Preston Avenue Seventh Floor Houston, Texas 77002 (713) 755-5370 3 February 2003 RECEIVED Mr. Douglas K. Kneupper, P.E. Director of Planning City of La Porte 604 W. Fairmont Pkwy. La Porte, Texas 77571 FEB 0 4 2003 PLANNING DEPT. SUBJECT: Agreement - Left Turn Lanes and Traffic Signal Modifications at Fairmont Parkway and Brookwood Drive, Fairmont Parkway and Farrington Boulevard, Fairmont Parkway and WiImont Drive Dear Mr. Kneupper: Transmitted for your files is a fully executed original agreement on the above captioned project. If I can be of further service, please advise. -p,,-' RLClic Attachment as Noted ee: Roel Garcia, Pet. 2 Jackie L. Freeman, H CPID Deborah M. Vaughn, HCPID Central File n:\word\pct2\02-03-03,003.doc HARRIS CO~TY DEPARTMENT OF PUBLIC INFRASTRUCTURE ENGINEERING DIVISION e 1001 Preston Avenue Seventh Floor Houston, Texas 77002 (713) 755-5:170 29 August 2002 Mr. Robert T. Herrera City Manager City of La Porte 604 W. Fairmont Pkwy. La Porte, Texas 77571 SUBJECT: Agreement - Left Turn Lanes and Traffic Signal Modifications at Fairmont Pkwy. and Brookwood, Fairmont Pkwy. and Farrington Blvd., Fairmont Pkwy. and Wilmont Drive Dear Mr. Herrera: Transmitted are duplicate originals of the agreement on the road project referenced above. It is requested that the City execute the originals and return both originals to this office. Harris County will then execute the agreement and one fully executed original will be sent to the City for your files. Your early attention to the subject matter would be appreciated. RLClic Attachment cc: Elmo Wright, Pet. 2 Jackie 1. Freeman, HCPID Deborah M. Vaughn, HCPID Central File RECEIVED RECEIVED :~:~~;") ~..: ,..:; 2a02 h:\word\pct2\OB-29-02 .00 I.doc ._CITY MAN GER'g SEP 0 5 2002 r;.:0....-ii:..-I.~~. (i~ 'OFFI E I' .. \I;. ." " 1\ ~~, f-:~-""." , r-u..Jcl.. .'Joe.rt15 ..Ji..1i ! . :'-'~ '., '.- r " . HARRIS CO~Y PUBLIC INFRASTRUCTURE DEPARTMENT ENGINEERING DIVISION e 1001 Preston A venue Seventh Floor Houston, Texas 77002 (713) 755-5370 8 November 2002 Honorable County Judge & Commissioners' Court , Building Attention: Commissioner Jim Fonteno SUBJECT: Recommendation by the County Engineer that the County Judge be Authorized to Execute an Agreement between Harris County and the City of La Porte i.Q Connection with the Construction of Left Turn Lanes and Traffic Signal Modifications at the Intersections of Fairmont Parkway and Brookwood Drive, Fairmont Parkway and Farrington Boulevard and Fairmont Parkway and Wilmont Driv:e in Precinct 2 Gentlemen: Transmitted are duplicate originals of an agreement to be entered into by Harris County and the City of La Porte on the intersections referenced above. The Agreement has been approved as to form by the County Attorney's Office and has been executed by the City of La Porte. In general the terms of the Agreement are as follows: 1. Harris County shall manage the project. 2. Harris County shall fund 50% of the project cost up to a maximum of $200,500. 3. City of La Porte shall fund 50% of the project cost up to a maximum of $200,500. Vota of the Court: J~d:'3 E::::!s No D rl o f'i L2 o Abstain 0, o r-: L....J o o Aesentsd to ConrnIssIoners' Cart NOV 1 9 2002 APPROVE LJ '+ Recorded Va. . Page - C<';j;' ;.,': _: ~ c.~:: nm. j=' : :.~~~~..:,) C:.:J!T!ITI. ;, :,''::::lcft Cornr.,. E"Qr~oia - :,,~..., c.J' - i. ~.:,.. '". \ ~ !. ':"- ...., ~ '.;;" ~ '~". .~..,.", ! h:\word\court\11-19-02-fairmont parkway,doc I "I '". ,'" : ,: "'" '-;" ,!... ,So - ai/"\ I \'.l,.,. ~ ~. ...; . I, rJ " , .;;. 00;:, \0.<" C' Court Letter e -2- e 8 November 2002 It is requested that the County Judge be authorized to execute the. Agreement on behalf of Harris County and that the County Clerk return both originals to this office for further handling. Sincerely, ~~~~~ Jackie Freeman, P.E. Director JFIRLCldh Attachment as noted cc: Commissioner Jim Fonteno Elmo Wright Tommy Tompkins Jack McCown Arthur L. Storey, Jr. Deborah Vaughn Robert Castille ~ Andy Mao Charlotte Atkinson Central File Agenda File h:\word\coun\II-19-02-fairmont parkway,doc e e K:\Iaportefairmontsignals AGREEMENT. THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ This Agreement is made and entered into by and between Harris County, a body corporate and politic under the laws of the State of Texas, hereinafter called "County," and the City of La Porte, a body corporate and politic under the laws ofthe State of Texas, hereinafter called "City"; RECITALS: 1. It is to the mutual benefit of County and City to construct left turn lanes and traffic signal modifications at the intersections of Fairmont Parkway and Brookwood Drive, Fairmont Parkway and Farrington Boulevard, and Fairmont Parkway and Wilmont Drive, hereinafter called the "Project. " 2. The County is willing to contribute up to $200,500 toward 50% of all costs of the Project and to administer the design and construction of the Project, provided that City will contribute 50% of all costs of the Project up to $200,500. All costs attributable to the cost of the Project, including costs of engineering, construction and construction support services will sometimes be called the "Project Costs." 3. No additional right-of-way will be required for the Project. Lt -a. NOW, THEREFORE, for and in consideration of the mutual covenants, agreements and benefits to the parties herein named, it is agreed as follows: TERMS: 1. Within ninety (90) days after execution of this Agreement, the County shall endeavor to prepare, or cause to be prepared, drawings and specifications for the Project and deliver copies of same to the City for written approval by the Mayor of the City, or his designee. 2. Within sixty (60) days after approval of drawings and specifications for the Project in accordance with Section 1, the County will advertise for and receive bids for the construction of the Project in accordance with the approved drawings and specifications in the manner similar to that of other like County projects. 3 Upon receipt and tabulation of the bids for the Project, County will determine the lowest responsible bidder for the construction of the Project. The County Engineer shall then estimate the projected Project Costs. 4. In the event the estimated Project Costs are equal to or less than the sum of $401,000, the County Engineer shall notify the City of the estimated Project Costs. The City shall transmit to the e e K:\Iaportefairmontsignals County within sixty (60) days of such notification, its check made payable to Harris County in an amount equal to one-half of the estimated Project Costs. 5. In the event the estimated Project Costs are greater than the sum of $401,000, County shall have the following options: a. County may elect to attempt to pay the additional cost of constructing the Project. In such case, the County shall notify the City. The City shall transmit to the County within sixty (60) days of such notification, its check made payable to Harris County in an amount equal to $200,500. b. County may reject all bids and elect not to proceed with the letting of the contract and terminate this agreement as provided below. c. County may reject all bids and re-advertise for bids for construction of the Project in accordance with the approved drawings and specifications in the same manner as before and under the same conditions. d. Attempt to negotiate an amendment to this Agreement to provide for payment of the additional costs, and if such an amendment is obtained, proceed under its terms. If the parties fail to agree to an amendment to this Agreement, then and in that event the County may proceed under one of the other three options. 6. Within thirty (30) days after the receipt of funds from the City pursuant to Section 4 or 5 above, the County shall award the contract to the responsible bidder who submits the lowest and best bid, in accordance with the usual and customary procedures of the County, subject to certification of the availability of funds for the Project by the County Auditor. It is expressly agreed and understood that the County reserves the right to reject all bids. In such event, the County, in its discretion, may either re-advertise for bids pursuant to the same understanding with regard to rejection of bids or terminate this agreement as hereinafter provided. The County's determination of the responsible bidder who submits the lowest and best bid for the Project shall be final and conclusive. 7. The County shall be responsible for administering the construction contract. During the construction of the Project, the City shall have the right of access to the construction site and shall have the right to review all documents, maps, plats, records, photographs, reports or drawings affecting said construction, provided, however, each shall give notice by telephone to the Harris County Engineer prior to any inspection of either the site or documents and provided further that in conducting said inspections, City shall not interfere with the work in progress. City shall be authorized to send representatives to and participate in the bi-weekly job-site meetings. 8. Payments by the City to County hereunder shall not be used by the County for any purpose other than paying for the Project. 9. The County shall cause the funds paid by the City to County hereunder that are not needed to meet obligations due or contemplated to be due within sixty (60) days, to be invested in the same e e K:\Iaportefairmontsignals manner as similar funds are invested by the County in federal obligations or interest-bearing time deposits. The determination by County of the portion of said funds needed to meet such obligations shall be conclusive. Upon completion of construction of the Project, the County shall perform or cause to be performed, a final accounting. If the total of the amounts paid by the City to the County hereunder, including interest earnings thereon exceeds an amount equal to 50% of the actual Project Costs, the County shall promptly pay over the amount of such excess to the City. If the total of the amounts paid by the City to the County hereunder, including interest earnings thereon is less than an amount equal to 50% of the actual Project Costs, the City shall promptly pay over the amount of such deficiency to the County. 10. The County acknowledges and agrees that the City's sole obligation under this Agreement during the construction of the Project is to contribute funding for the costs of the Project to the extent stated in this Agreement, and the City has not assumed any responsibility for the actual construction of the Project or the performance of the work other than the contribution of funds as provided herein. The City shall not be responsible for the maintenance or condition of the Project facilities during construction of the Project. 11. The County may make such changes and amendments to the drawings and specifications within the general scope of the approved Project as the County Engineer deems necessary or desirable during construction of the Project. 12. Either the County or the City may terminate this Agreement, without cause, at any time prior to the letting of the Contract for construction of the Project, by written notice to the other party. After termination, neither party shall have any further obligations hereunder, except as follows: If, at the time of termination, the total of the amounts, if any, paid by the City to the County hereunder, including interest earnings thereon exceeds an amount equal to 50% of the actual Project Costs incurred to the time of termination, the County shall promptly pay over the amount of such excess to the City. If, at the time of termination, the total of the amounts paid by the City to the County hereunder, including interest earnings thereon is less than an amount equal to 50% of the actual Project Costs incurred to the time of termination, the City shall promptly pay over the amount of such deficiency to the County. After termination of this Agreement, the County may continue, at its option, with construction of the Project. 13. Unless this Agreement is amended and additional funds are thereby made available, it is expressly understood and agreed that the City has available the maximum sum of $200,500 to satisfy its obligations under this Agreement; and that the County has available the maximum sum of $200,500 to satisfy its obligations under this Agreement; and neither party hereto shall be obligated to expend more than the said maximum sum available to the party. 14. The City and its authorized representatives shall have the right to review and audit all books, records, vouchers and documents of whatever nature related to County's performance under this Agreement during the period of performance of this agreement and for three (3) years thereafter or for so long as there exists any dispute or litigation arising from this agreement. 15. No party hereto shall make, in whole or in part, any assignment of this agreement or any obligation hereunder without the prior written consent of the other parties hereto. e e K:\Iaportefairmontsignals 16. All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed hereinbelow or at such other address as the other party may have theretofore prescribed by notice to the sending party. Address for notice shall be as follows: CITY City of La Porte P.O. BVA 1115 '0'-4 W. FAlfl'1lorJT PARKwAy LaPorte, Texas !:R'i7'1. 111'3' '7571 County: Harris County Harris County Administration Building 1001 Preston, 7th Floor Houston, Texas 77002 Attn.: County Engineer 17. This instrument contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any modifications concerning this instrument shall be of no force and effect excepting a subsequent modification in writing, approved by the governing bodies and signed by all parties hereto. IN TESTIMONY OF WHICH, this agreement, in duplicate counterparts, each having equal force and effect of an original, has been executed on behalf of the parties hereto as follows, to-wit: a. It has on the day of NOV 1 9 20aZ , 2002, been executed on behalf of the County by the County Judge of Harris County, Texas, pursuant to an order of the Commissioners Court of Harris County authorizing such execution. b. It has on the 21- day of llJoN/ , 2002, been executed on behalf of the City by the Mayor and attested by its City Secretary, pursuant to ordinance of the City Council of the City of La Porte authorizing such execution. . e K:\Iaportefairmontsignals APPROVED AS TO FORM: HARRIS COUNTY MIKE STAFFORD County Attorney ROBERT ECKELS, County Judge ByPfl--C U~ DON C. WHITLEY . ,...- Assistant County Attorney B ATTEST CITY OF LA PORTE ByLfY(t1.Jd'L;it/LfI. BY~~_____ City secretary Mayor AUDITOR'S CERTIFICATE I hereby certify that funds are available in the amount of $200,500 to accomplish and pay the obligations of Harris County herein. . e ~ ~ Presented to ComrnIssIonerI' Court NOV 1 ~ 2002 APPROVE Recordsd Vol. Page K:\Iaportefairmontsignals THE STATE OF TEXAS COUNTY OF HARRIS The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the _ day of NOV 19 2QOt ,2002, with the following members present, to-wit: Robert Eckels EI Franco Lee James Fonteno Steve Radack Jerry Eversole County Judge Commissioner, Precinct No. 1 Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 and the following members absent, to-wit: ~, ~ a quorum, when among other business, the following was transacted: , constituting ORDER AUTHORlZING/APPROVING AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE, FOR JOINT FUNDING THE CONSTRUCTION OF LEFT TURN LANES AND TRAFFIC SIGNAL MODIFICATIONS AT THE INTERSECTIONS OF F AIRMONT P ARKW A Y AND BROOKWOOD DRIVE, F AIRMONT P ARKW A Y AND FARRINGTON BOULEV ~ FAIRMONT PARKWAY AND WILMONT DRIVE Commissioner ~ introduced an order and made a motion that the same be adopted. Commissioner y ~.1" ~ seconded the motion for adoption of the order. The motion, carrying with it the adoption of the order, prevailed by the following vote: . Yes No Abstain Judge Eckels 0 0 Comm. Lee 0 0 Comm. Fonteno 0 0 Comm. Radack 0 0 Comm. Eversole 0 0 The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and law-fully adopted. The order thus adopted follows: IT IS ORDERED that the County Judge is authorized to execute for and on behalf of Harris Courity, an Agreement by and between Harris County and the City of La Porte, for joint funding of the construction of left turn lanes and traffic signal modifications at the intersections of Fairmont Parkway and Brookwood Drive, Fairmont Parkway and Farrington Boulevard, and Fairmont Parkway and Wilrnont Drive, at a maximum cost to the County of $200,500 under GL ORG KEY 10010276, said Agreement being incorporated herein by reference for all purposes as though fully set forth word for word. . e, " ,- , i":' ..' . REQUEST FOR CITY COUNCIL AGENDA ITEM Department: Public Works Agenda Date Requested: Appropriation Requested By: S. Gillett Source of Funds: Account Number: Report: Resolution: Ordinance: xx Amount Budgeted: Exhibits: Ordinance Amount Requested: N/A Exhibits: Lease and Rental Assignment and Security Ae:reement Budgeted Item: YES NO Exhibits: First Amendment to Agreement and Lease SUMMARY & RECOMMENDATION The City of La Porte has a lease !lg~eement with Tri-Star Aviation (Lessee), dated January I, 1985 and amended April 1, 2002. The Amendment allows the construction of two (2) T-hangers on the Ramp Area in the central portion of the Airport. The Lessee is financing the construction through 1 st Choice Bank of South Houston. In order to protect the interests of the Lessee, the City and the bank, a Lease and Rental Agreement and Security Agreement has been drafted. The Agreement protects the City, as well as 1st Choice Bank of South Houston, in the event ofa default on the part of the lessee. The Bank's remedy, in the event of default, is to take over the lease, and reassign the lease to another operator acceptable to the City. Action Required bv Council: Approve an Ordinance authorizing the City Manager to execute a Lease and Rental Agreement and Security Agreement between the City of La Porte, Tri-Star Aviation and 151 Choice Bank of South Houston. /~Jz. Date . e ORDINANCE NO. 2002 -. ~_5 4' I AN ORDINANCE APPROVING AND AUTHORIZING THAT CERTAIN LEASE AND RENTAL ASSIGNMENT AND SECURITY AGREEMENT, BY AND AMONG TRI-STAR AVIATION, INC., 1ST CHOICE BANIC, SOUTH HOUSTON, TEXAS, AND THE CITY 01' LA PORTE 7 KAICING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT 7 I'INDING COMPLIANCE WITH THE OPEN KBETINGS LAW 7 AND PROVIDING AN EI'I'ECTIVE DATE HEREOI'. 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 Acting 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 PASSED AND APPROVED, this 28th day of October, 2002. By: CITY OF LA PORTE tI,~d- /N r an L. M 10 e Mayor ATTEST: ~~a,{f;d Mart a A. G111e t City Secretary APPROVED: /! % I/'t' ~, ,r-#1f. W~ Kn x W. Askins' . City Attorney 2 e e J. L. JAY ATTORNEY AT LAW 8121 Broadway, Suite 100 Houston, Texas 77061-1341 (713) 645-9595 October 2, 2002 Mr. Knox Askins City Attorney, City of La Porte, Texas P. O. Box 1218 La Porte, Texas 77572-1218 RE: Loan by 1st Choice Bank of South Houston, Texas Tn-Star Aviation, Inc. Dear Mr. Askins: Enclosed are copies of a Security Agreement, which 15t Choice Bank is requesting the City of La Porte approve as an Assignment of the Lease and Subsequent Amendment by the City of La Porte to Tri-Star Aviation, Inc. to secure financing for hanger construction at the La Porte Municipal Airport. Please place this on the La Porte City Council agenda as soon as possible for approval so that construction may begin. Please call if you have any suggestions or questions. Sincerely, 2::t3 \. .L.Jay . Attorney for 15t Choice Bank JLJ/mr Enclosure(s) e e LEASE AND RENTAL ASSIGNMENT AND SECURITY AGREEMENT STATE OF TEXAS . * * KNOW ALL MEN BY THESE PRESENTS: COUNTY OF HARRIS * That the TRI-STAR AVIATION, INC., A TEXAS BUSINESS CORPORATION of Harris County, Texas, herein called "Assignor" (whether one or more), for a valuable consideration paid by 1st Choice Bank, South Houston, 3100 South Shaver, South Houston, Harris County, Texas, 77587, hereinafter called "Assignee", the receipt and sufficiency of which is hereby acknowledged, and for the purpose of further securing Assignee in the payment of that certain indebtedness evidenced by that one certain promissory note in the original principal sum of $123,224.90 dated October ....a..., 2002, . executed by TRI-STAR AVIATION, lNC. and payable to the order of 1st Choice Bank, South Houston, Texas, covering improvements located on property located in the City of La Porte, Harris County, Texas, described in the First Amendment to Agreement and Lease for Fixed Base Operations attached and marked as Exhibit "Lease", does hereby assign and transfer unto Assignee and grant to Assignee a security interest in all leases and rental contracts which have been and may hereafter be executed covering all or any part of said property, together with all rentals and income accruing therefrom, and particularly the following described lease or leases which constitute all the leases covering said property that are now in full force and effect, to wit: The Lease Agreement Marked as Exhibit "Lease" and attached hereto. Assignor warrants, represents and agrees that: 1. Said Lease is valid and in full force and effect according to its terms; that no change, modification or amendment thereof has been made; that no prior assignment thereof has been made and that no assignment of any of the rental and income from the above described lease has been made; and that no financing statement covering said lease or leases or the property described is on file in any public office. 2. Assignor shall not, without the prior written consent of Assignee, make or agree to change, modification or amendment in or termination of the lease covering the said property, shall not exercise any option if any be in said lease to take action to forfeit the same. 3. Assignor shall (a) perform all of the obligations and duties of Lessee under the lease covered hereby; (b) promptly inform Assignee in writing of notice received from the Lessor with respect to any obligation under the lease or of any default or claimed default by any party to the lease; and (c) keep accurate books, records and accounts with respect to the lease and make them available to the Assignee at its request for examination and inspection. e e This Assignment of Lease is especially made SUBJECT to Article X of said Lease Agreement. The City of La Porte by its consent to this Assignment of Lease for financing purposes by Assignor, expressly reserves all its rights as Lessor, contained in said Lease Agreement, and particularly Article X thereof, including, but not limited to, the right of the City of La Porte to give prior written approval to any substitute lessee. As often and whenever a default occurs in the payment of the above described Promissory Note, or in the performance of any covenant contained in the Loan Agreement between Assignor and Assignee and as long as any such default continues, Assignee is hereby authorized to take possession of the premises covered by such Lease, and may exercise by prior written consent of Lessor, all other rights of the Lessee under the terms of such Lease Agreement. Assignee shall have the right at any time that such default exists, to make and enter into agreements with Lessee's tenants, increasing or reducing rentals or otherwise changing the terms of such sub-lease contracts, and under such circumstances may enter into new sub-leases and rental contracts in the name of Assignor or otherwise, on such terms and containing any covenants and agreements as Assignee may deem advisable. Assignor further agrees to inform Assignee promptly in writing of notice received from the City of La Porte with respect to any obligation or default under said lease(s). Assignor also agrees to perform all obligations binding on Lessee under its said lease(s) with the City of La Porte. The City of La Porte, acting herein by its duly authorized representatives, joins in the execution hereof for the limited purpose of evidencing its consent to this Assignment of Lease for finance purposes by Assignor to Assignee. Such consent by the City of La Porte shall not be construed as a waiver of the performance of TRI-STAR AVIATION, INC., as Lessee under said Lease Agreement. The City of La Porte agrees, that in the event of default by Assignor herein in its obligations under said lease agreement with the City of La Porte, that Assignee shall have the right, with the prior express written consent of the City of La Porte, to assign the lease agreement between the City of La Porte and Assignor, to a qualified aircraft fixed base operator. In the event of such assignment, all provisions of the Lease Agreement between the City of La Porte and Assignor, applicable to the Lessee thereunder, shall be equally binding upon any party to which the activities, uses, privileges and obligations authorized in said Lease Agreement, are assigned, by Assignee hereunder. The City of La Porte will not be unnecessarily arbitrary in granting said permission, but the City of La Porte shall be the sole judge as to the reliability, capability, character, and desirability of the parties involved. The consent of the City of La Porte evidenced hereby shall not be construed as a subordination or waiver and relinquishment by the City of La Porte of its right of levy for rents and all liens, claims and demands of every kind which it may have against all building and contents on the lease premises, under the constitution and laws of the State of Texas, and under the terms and provisions of its Amended Lease Agreement with TRI-STAR AVIATION, INC., successor in interest to Bayport Aviation, Inc., whose original lease with the City of La Porte was dated January 1, 1985, and was amended effective April!, 2002. e e Assignee shall have the additional right and authority in the event of default as aforesaid, but shall not be obligated to: 1. Make and enter into agreement with Lessor and other users of the premises, including the specific right to assign the rights of Assignee herein to another. 2. Sue for the balance due on the Note hereby secured, for possession of the premises, and all appropriate rights and remedies in connection therewith. Assignor specifically agrees that the Note hereby secured may be from time to time, renewed, extended, modified or rearranged, and this assignment shall not in any manner be effected by such action. This assignment shall be binding upon and shall inure to the benefit of the legal representatives, heir, successors, and assigns, respectively, of the Assignor and Assignee; and shall terminate and become null and void upon full and final payment of the Note secured by this assignment and referred to herein. EXECUTED this ~ d.... day October, 2002. TRI-ST AR AVIATION, INC. BY.~~ Dan H. Maarhouf, Pr ident ATTEST: - r-::? ~_/ Secretary By: BANK, SOUTH HOUSTON, " CITY OF LA PORTE By: , Acting City Manager e e ATTEST: iJld~AuuI City Se retary THE STATE OF TEXAS ~ ~ ~ COUNTY OF HARRIS BEFORE ME, the undersigned authority on this day personally appeared DAN H. MAARHOUF, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same in the capacity stated and for the purposes and considerations therein expressed. " t!I .-fr;;J J.~~EN UNDER MY HAND AND SEAL OF OFFICE, this the 3t.tl., day of wl~ ,2002. \~"~q~""", ..,,~~<- C:~:J ~~J;i;;\~~$ '''1''11'''' KATHIE Q'QUINN Notary Public. State of Texas MV Commission Expires March 08, 2005 ~~~ Notary Public, in and or the State of Texas THE STATE OF TEXAS ~ ~ ~ COUNTY OF HARRIS BEFORE ME, the undersigned authority on this day personally appeared GERRY E. MONZINGO, President, 1 sl Choice Bank, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same in the capacity therein stated, and for the purposes and considerations therein expressed. IJ . L_ 9'ryEN UNDER MY HAND AND SEAL OF OFFICE, this the -j[ i. day of ~ ,2002. q)!L~ ~ Notary Public, in and or the State of Texas ~tATHrE O'QUINN NO,iirv "ublic. State of Texas Mv Commission Expires March 08, 2005 .. "",~~I~'",1. ~~~~"...!'''t.''''Io f~" "{"i ~~. "'~i "",,1";iF\\";.~" ""flU"" e e THE STATE OF TEXAS COUNTY OF HARRIS ~ ~ ~ BEFORE ME, the undersigned authority on this day personally appeared JOHN JOERNS, Acting City Manager of the City of La Porte, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same in the capacity therein stated, and for the purposes and considerations therein expressed. . GWEN UNDER MY HAND AND SEAL OF OFFICE, this the ~ay of ~tt,ber , 2002. e MELlSA LANCLOS Notary Public, SIatIl of Texas My Commissim Upires JAIl 10. 2005 AFTER RECORDING RETURN TO: 1 ST CHOICE BANK GERRY E. MONZINGO, PRESIDENT 3100 SOUTH SHAVER SOUTH HOUSTON, TEXAS 77587 e' e FIRST AXEHDHENT TO AGREEMENT AND LEASE FOR FIXED BASE OPERATIONS AT CITY OF LA PORTE MUNICIPAL AIRPORT THIS FIRST AMENDMENT TO AGREEMENT AND LEASE, .which was made and entered into effective as of the 1st day of January, 1985, by and between the City of La Porte, a municipal corporation organized and existing under the laws of the State of Texas, hereinafter referred to as "Lessor", and Bayport Aviation, Inc., predecessor corporation to Tri-Star Aviation, Inc., a Texas business corporation, acting herein by and through its duly 'authorized officers, hereinafter referred to as "Lessee." WIT N E SSE T H: WHEREAS, the parties have heretofore entered into an Agreement and Lease for Fixed Base, Operation at the City of La Porte Municipal Airport, dated January 1, 1985; and WHEREAS, the parties hereto desire to enter into a First Amendment to said Agreement and Lease, effective April 1, 2002, for the use of additional premises and facilities at the Airport all as more fully hereinafter set forth; and WHEREAS, the parties agree that the Lease Agreement between the parties dated January 1, 1985, shall remain in full force and effect, except, and to the extent, amended hereby. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, the Lessor and the Lessee do hereby mutually undertake, promise and agree, each for itself and its successors and assigns, as follows: ARTICLE I - TERM OF AGREEMENT The term of this First Amendment to Agreement and Lease shall be for the period commencing April 1, 2002, and terminating on March 3,1, 2022, unless sooner t.erminated as hereinafter provided. ARTICLE II - LEASED PREMISES AND FACILITIES Article II, SUbparagraph 1, is amended by adding the following, to-wit: "The Lessor, in consideration of the compensation and sundry covenants and agreements set forth herein to be kept and performed by the Lessee, does hereby, and by these presents, demise and lease unto the Lessee, upon the conditions hereinafter set forth, all of which the Lessee accepts, the exclusive use and occupancy of the Leased Premises, to-wit: II LEASE" e' e Ramp Area for use as tie-down parking facilities and for fifty (50) aircraft, and for two (2) T-Hangar sites, T-Hangar Site No.1 being 7,520 square feet, and T-Hangar site NO.2 being 8,930 square feet, identified as "Designated Use Area" on Exhibit "A" attached hereto and made a. part of this Agreement." ARTICLE III - RENTALS AND CHARGES Article III, subparagraph 1, is amended by adding the following, to-wit: "For the Leased Premises as described in Article I, above, being the fifty (50) tie down areas described on Exhibit "A" , to this Amended Lease Agreement, and two (2) T-Hangar sites of 16,450 square feet total, identified as "Designated Use Area" on Exhibit "A", the following rental: A. Rental shall be paid annually in advance in an amount of $265.46 p~r year, for T-Hangar Site No.1, and $315.23 per year, for T-Hangar Site No.2, or $580.69 for the two (2) T-Hangar sites, based on January 1, 2002, rental rate of $1,539.41 per acre per year. Rental for subsequent years under this paragraph years under this paragraph shall be subject to increase in accordance with any increase in the Consumer Price Index for All Urban Consumers, with December, 2001, as a base year. Rental for the T-Hangar area shall commence on the earliest to occur of September 1, 2002, or the issuance of a certificate of occupancy by the City of La Porte; B. Lessee shall pay to Lessor, as additional rent, a sum equal to thirty percent (30%) of the gross revenues obtained from rental of tie-down spaces; provided, however, Lessee shall guarantee Lessor a yearly rental of not less than $144.00, multiplied by the 50 tie-downs leased; , C. Rental for the 50 tie-downs shall be paid monthly, in a sum equal to 1/12th of the annual rental due, in advance, on the 1st day of each and every month. Cost of living indexing shall not apply to the rental and charges for the tie-down areas." Article III is further amended by adding thereto, a final paragraph, which shall read as follows, to-wit: "The construction schedule for the two (2) T-Hangar sites shown on Exhibit "A", is attached hereto as "Construction Schedule (Exhibit "B")", incorporated by reference herein and made a part hereof for all purposes. II 2 e. e Except and to the extent as amended hereby, the Agreement and Lease for fixed base operation at city of La Porte Municipal Airport, between the. City of La Porte, as Lessor, and Bayport Aviation, Inc., predecessor corporation to Tri-Star Aviation, Inc., as Lessee, shall remain in full force and effect. . IN WITNESS WHEREOF, the parties have caused these presents to be signed by their duly authorized representatives. Lessors BY: ATTEST: /L, Ilh ~~Gillett City Secretary ,.1 .' , / ,. AP~~ I /// ( '1" c~d~tIc~/I?d;~~ Kri6x W. Askins City Attorney Lessees By: TRI-STAR AVIATION, INC. Successor to Bayport Aviation, Inc. ~ ~".I"'-~ Name: ~ .~ . Title: ~....~ ATTEST: 3 e' e EXHIBIT "B" Lessee's Construction Schedule Lessee covenants and agrees with Lessor to keep ~nd maintain the following staged construction milestones in the planning and construction of two (2) T-Hangers shown on Exhibit "A". 1. Site Plan submitted by April 1, 2002 2. Construction begins by May 1, 2002 3. Construction completed by August 1,2002 - e .. II It ~ .. I . E x,, H..'.'" \ 8.\ T';:;:',: ,,,,.:.::!{,:.:,,,. , '.~J~):'.':< f..)::j, '.' . . ~ ..' .:~: ~~}.~'_;."- ~~~~ ~_~.~~~::o'_.. 'R' e : . ~_:'ll..... .' AGREEMENT AND LEASE FOR FIXED BASE OPERATION CITY OF LA PO~TE MUNICIPAL AIRPORT THIS AGREEMENT AND LEASE, made 'and enter~ into this 1st day of January, 1985, by and between the' City of La Porte, a municipal corporation organized and existing under the laws of the State of Texas, hereinafter ref erred to as ~I Lessor" and Bayport Av ia tion, Inc., a corporation organized and .existing under the laws of the State of Texas, hereinafter referred to as "Lessee." WIT N E SSE T H: WHEREAS, the Lessor controls and operates an airport known as La Porte Municipal Airport, located in the City of La. Por~e, State of Texas, which airport and any additions or improvements thereto or changes therein which the Lessor hereafter makes or authorized are hereinafter collectively referred to as the "Air- port,", and, WHEREAS, the parties hereto desire to enter into an Agreement and Lease for the use of premises and facilities at the Airport all as more fully hereinafter set forth. NOW, THEREFORE, for and in consideration of the mutual cove- nants and agreements herein contained, the Lessor and the Lessee do hereby mutually undertake, promise and agree, each for itself and its successors and assigns, as follows: ARTICLE I - TERM OF AGREEMENT , The term of this Agreement and Lease shall be for the period commencing January 1, 1985, and terminating December 31,' 2014, unless sooner terminated 'as hereinafter provided. ARTICLE II - LEASED PREMISES AND FACILITIES 1. The Lessor, in consideration of the compensation and sundry covenants and agreements set forth herein to be kept and per- formed by the Lessee, does hereby, and by" these presents, demise and lease unto the Lessee, upon the conditions herein~ after set forth, all of which the Lessee accepts, the exc~u- sive use and occupancy of the Leased. Premises, to-wit: e,' -2- e Property at La Porte Municipal Airport, consisting of 11.1207 acres, more or less as "Fixed Base Operator Area" on Exhibit "An attched hereto and made a part of this Agreement, and Ramp .area for ~se as tie-down parking facilities for air- planes, identified as . "Designated ..Use Area" on Exhibit "A" attached hereto and made a part of this Agreement, and Property consisting of' 0'.769 acres, more or less, identified as nT-Hangar Development Area" on Exhibit B attached hereto and made a part of this Agreement. The location and boundaries of said Leased Premises, as in- dicat'ed on Exhibits A and B, attached hereto, are stipulated ' and agreed between the parties to be correct and by reference made a part hereof. . 2. Lessee takes all of such property in its present" condition "as is", and except as otherwise specifically provided here- in, agrees to provide all necessary and reasonable maintenance and repairs in order to maintain such property in a usable condition. 3. Lessee shall make availabl e to the publ ic for rental purposes, the T-Hangars and tie-down facilities leased to Lessee herein. In its rental of such T-Hangars and tie-down facilities, the Lessee shall provide reasonable rental rates, consistent with industry standards for this region. Notwithstanding any other provision of this Agreement, the parties recognize and agree that Lessee is not herewith given and shall not exercise exclusive control over the ramp area not specifically leased under this Agreement 7 and that the public shall have the right, at all time, to ingress and egress, ov.er and through said area, as reasonably necessary for the use by the public of airpo~t facilities ~t La Porte Municipal Airport. 4. The Lessor expressly reserves from the lease of the Leased Premises the following: A. All gas, oil and mineral rights in and under the soil. B. The right to grant utility rights-of-ways to others over, under, through, across or on the Leased Premises, provided that such use will not unreasonably or materially inter- fere with the Lessee's use of the Leased Premises. ARTICLE III - RENTALS AND CHARGES 1. For the Leased Premises, as described in Article II, Paragraph 1 as "Fixed Base Operator Area", and as shown in Exhibit "A", and nT-Hangar Development Area", as shown on Exhibit e' -3- e "B", the basic ground rental calculated for an index value of 100.0 is Two Hundred Seventy-Nine and Forty-One One- Hundredths Dollars ($279.41) per acre per year. The actual rentals for the Leased Premises, to be paid to. the Lessor by the Lessee, shall be determined by multiplying said basic rentals specified under P~ragrap~ 1 above by the index value determined for successive calendar years in the manner herein set forth. The index value for the calculation of actual rental rates shall be based on. the Consum.er Price Index for All Urban Consu~ers, using as base year 1967, published by the Bureau of Labor Statistics of the United States ~epartment of Labor, and shall be calculated as fo~lows: A. The index for any particular calendar year shall be the numerical average of. th~ indexes, for the months of June through August inclusive of the calendar year next pre- ceding the year for which the calculation is made. The index for the year 1984 is 311.8, resulting in an annual rental rate of Eight Hundred Seventy-One and Twenty One Hundredths Dollars ($871.20.) per acre for the year 1985. This rate results in "a total 1985 ground rental for the parcel indicated as "Fixed Base Operator Area" on Exhibit "A" of Nine Thousand, Six Hundred Eighty-Eight and 32/100 Dollars ($9,688.32). B. The actual rental rates shall be' determined prior to January 1 of each calendar year and shall be effectiv,e for the full calendar year. C. In the event that the United States Depart.ment of Labor discontinues publication of the above index or data from which the index can be directly computed, or if the method for the determination of such index is substantially dif- ferent than that existing at the time this Agreement and Lease is executed, the basis for the rental rate adjust- ment shall be the most closely comparable index published by the U. S. Government. 2. The parties recogniz'e that Lessee shall lease to tenants, facilities for the storage and/or tie-down of aircraft within leased properties described as "Designated Use Area" or "T-Hangar Development Area" on Exhibits "An and DB". The Lessee shall have the right to provide additional T-Hangar or tie-down facilities on the property leased herein, but any such additional facility shall only be provid9d after specific written authorization from the Lessor. ,Additional facilities shall be provided only in areas specifically e. -4- e authorized by the Lessor and shall be hardsurfaced' rather than grass areas. The parties further ag~ee that no aircraft will be tied-down on grass surface areas within Lessee's leased premises after the year 1990. Lessor leases to Lessee, the thirty (30) westernmost tie-downs in Phase I construct ion of the ,new II Des i'gna ted Use Area, II upon the terms and conditions herein contained. Upon comple- tion of Phase' II construction, Lessor will re-assign to Lessee, the thirty (30) westernmost tie-downs in the combined Phase I/Phase II constructed Designated Use Area. Lessor gran1::s to Lessee, an option, exercisable within thirty (30) days after receipt by Lessee of written notice from Lessor, that Lessor has accepted from its contractor, Phase II constru- ction in the "Designated Use Area," which option shall be an option to Lessee; to lease an additional twenty (20) .tie-downs, within the "Designated Use Area,'~ for a total of fifty (50) tie-downs, which, if said option is exercised by Lessee, shall be the fifty (50) westernmost tie-downs in the "Design- ated Use Area,". upon the terms ,and condtions herein contained. Lessor further grants Lessee an option to lease the first two '(2) T-Hangar sites in the new T-Hangar area, with a minimum of one' (1) year to begin construction, and with the flooring or paving under the new T-Hangars to be put in place by Lessor when access ramps are paved by Lessor. Lessee shall pay Lessor an option fee of Five Hundred Dollars ($500.00) upon the execution hereof, for each T-Hangar site which Lessee desires to option from Lessor, which option fee shall be credited to rental, if such options are exercised by Lessee, upon the lease terms as herein conta ined., Lessor agrees that T-Hangar' area will be leased to any Fixed Base Operator at the same established square foot rental fee charged by Lessor to Fi;Xed Base Operator Lessees, at the time of signing of such new leases. Lessor covenants that the lease price shall not in any event be less than $.02 square foot per year. In addition, any Lessee 'Fixed Base Operators shall pay Lessor thirty (30) percent of its esta- bl ished tie-down ramp fee for each hangar space. In other words, ,Lessor shall treat T-Hangars as tie-down ramp, with the fee tied to" actual charges by Lessees to their customers, on the ramp area, for purposes of computi.ng minimum lease payments for T-Hangar space. Only the area actually covered by hangar will be considered in foot print leases, at the establ ished square foot charge. In add i tion, after acceptance of construction by Lessor, this fee will be paid by Lessee to City, and by any ,future Lessee Fixed Base Operators to City, whether or not the hangar is occupied by Lessee's customers. No aircraft will be allowed to use the T-Hangar area as open ti e-down; planes in the T-Hangar area must be parked in'hangars. The Lessee shall pay to the Ci ty of La Porte, as add i tional rent, a sum equal to "Thirty percent ,(30%) of the gross revenues . obtained from rental of T-Hangars and tie-down spaces within the ','Designated Use Areas" or liT-Hangar Development Area" d~pic::ted on Ex~ibits "A" and "B". For ramp tie-down spaces Wl'thln the Deslgnated Use Area, Lessee guarantees the City of La Porte a yearly rental of not les~ than One Hundred Forty-Four Dollars ($144.00), multiplied by the number of tie-downs leased i and, if at the end ot each anniversary year. of this agreement, the rentals paid to the City of La Porte are less than One Hundred Forty~Four Dollars ($144.00) multiplied by the number of ramp tie-downs leased, then Lessee shall, not later than the 10th day of the month follow- ing the month anniversary date of this agreement, pay Lessor sufficient money so as to ensure a total of One Hundred Forty-Four Dollars .($144.00),' multiplied by the number of ramp tie-downs leased, for minimum tie-down rental within the Designated Use Area. -5- e In the event that Lessee shall construct or cause to be con- structed T-Hangars, within the area designated as liT-Hangar Development Area II on Exhibit "B", Lessee shall pay to the City of La Porte, as rent and use fee, a sum equal to thirty percent (30%) of its established tie-down ramp fee for each hangar space mul tipl ied by the number of hangar spaces to compute gross revenue obtained from rental of such T-Hangars, for purposes of this lease. For T-Hangars spaces within the liT-Hangar Development Area", Lessee guarantees Lessor a yearly rental of not less than One Hundred Forty-Four Dollars ($144.00) per T-Hangar space, mul tipl ied by the number of T~Hangar spaces leasedi and, if at the end of each anniversary year of this agreement, the ren.tals paid to the City of La Porte are less than One Hundred Forty-Four Dollars ($144.00), multiplied by the number of T-Hangar spaces leased by Lessor by Lessee hereunder, then Lessee shall, not later than the 10th day of the month following the anniversary date of this agreement, pay Lessor sufficient monies so as to ensure a total of One Hundred Forty-Four Dollars ($144.00), multiplied by the number of T-Hangar spaces leased by Lessor to Lessee, for minumum T-Hangar rental within the "T-Hangar Development Area. II 3. The rental above provided for during the term of this Agreement and Lease shall be paid monthly, in sum equal to 1/12 of the .annual rental due hereunder, in advance on the first day of each and every month. In the event that this Agreement and Lease .commences or ,terminates other than on the first or last day of the month, pro-rata payments shall be made for the fractional part of a month involved. 4. The, Lessor is entitled to collect and the Lessee agrees to pay,-" all rentals, due. under this Agreement and Lease to the City of La Porte, La Porte Municipal Airport, ,La Porte, . -6- e Texas, without notice to the Lessee. Rentals more .than thirty (30) day!? past due may be subject .to a service charge of one percent (l %) per month, based on an annual rate of twelve percent (12%). 5. Without prejudice to any other, remedy.. which otherwise might be used for arrears of rent or otl1er breach -of this Agreement, if the Lessor is required or it elects to pay any sum or incurs any obligations or expense, by reason of a failure, neglect or refusal of the Lessee to perform anyone or more of the terms, conditions or c'ovenants of this Agreement and Lease or as the resul t of any act or omission of Lessee contrary to said terms, conditionS and covenants, the sum or sums so paid or the expense so incurred, including all inte- rest, costs, damjiges and penalties may be added to any in- stallment of rent thereafter due hereunder and each and every part of .the same shall be and become addit'ion'al rent recoverable by the Lessor in the same manner and with like remedies as if it were originally a part of the rent as set forth hereinabove. ' ARTICLE IV - ACTIVITIES, USES, PRIVILEGES AND OBLIGATIONS OF THE LESSEE . 1. A Fixed Base Operation is defined as a commercial aviation activity conducted by a person, partnership, firm or corpora- tion engaged in the hangaring " maintenance, care and opera- tion of aircraft for use by the public, and such other acti- vities as may be pertinent' to such use. This definition specifically includes all terms as set forth in Minimum Standards for Equipping & Operating A General Fixed Base Operation at the La Porte Minicipal Airport, made a part hereof by reference and attached as Exhibit "C". 2. Dur~ng the term of this Agreem~r:tt and Lease, the Lessee agrees to use the Leased Premises for the purposes or activities stated above, subject to. the conditions generally or particu- larly set forth herein, and not to use or permit the use of the Leased Premises or any part thereof for any purposes or activities other than those speci~ically stated above without first obtaining the express, written approval of the Lessor. 3. Lessee agrees that the rights and privileges granted herein are non-exclusive except as to the Leased Premises which shall be for the exclusive use of the Lessee. 4. The Lessee agrees that the Lessor has the right to adopt and enforce reasonable rules and regulations and that it and all its employees, agents and servants will faithfully observe and comply with all rules and regulations as may from time e, -7- e to time be promulgated by the Lessor, the United States. of Arneri'ca or any department or agency thereof, the State of Texas and the City of La Porte. 5. The Lessee agrees, at its own expense, to pay any and 'all taxes levied by the City, County or other appropriate govern- mental units and to pay any and all.. costs or charges for utility services furnished to ,or requiretl by the Lessee. , , 6. The Lessee will not suffer or permit to be maintained upon the Leased Premises or upon the exterior of any improvements' or apputenances thereto any billboards, signs or other adverti- sing media except those which have prior written approval of the Lessor. Flashing, rotating, animated or intermittent i~luminated type signs are prohibited. 7. Lessee shall utilize on the Airport, only service qontractors authorized to operate at. ~he Airport, including, but not limited to vendors of aircraft, aircraft parts, service and fuel, car rental service, taxicab service, vending machine service and the like: it being understood that fees may be imposed or collected by the Lessor from such contractors for the privilege of operating at ,the Airport. ARTICLE V - RIGHTS AND COVENANTS OF THE LESSOR 1. The Lessor covenants that it is well seiz ed of the Leased Pr,erqiE..~.s, and has good title ~hereto free and clear of all liens and encumbrances and has full right and authority to lease the same as herein set forth. 2. The Lessor covenants that the Lessee shall have peaceful possession and qu iet enjoyment of the LeaSed Premises during the term hereof so long as the Lessee performs and observes all of the covenants, agreements, terms and conditions hereof. 3. The Lessor reserves the right to maintain and keep in ,: repair the landing ,area of the Airport and all publicly-owned facili- ties of the Airport, together with the right ,to, direct and control all activit.ies of the Lessee in this regard. 4. The Lessor reserves' the right further to develop or improve the landing area and all pUbicly-owned air navigation facili- ties of this Airport as it sees fit, regardless'of the desire or views of the Lessee, and without interference or hindrance. 5. The ,Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent the Lessee from erecting, or permitting to be erected, any build- e' e --8- ing or other structure on the. airport which. in the opinion of the Lessor would limit the usefulness of the Airport or constitute a hazard to aircraft., 6. During time of war or national' emergency Lessor shall have the right to enter into an' agreement with the United States Government for military or naval use. of part or all of ,the landing area, the pUblicly-owned air navigatio,n facilities and/or other areas. or facilities of, the Airport. If any such agreement is executed, the provisions of this instrument, insof"ar as they are inconsistent with the provisions of. the agreement with the Government, shall be suspended. 7. This Agreement shoall be subordiante to ,the provisions of- any outstand ing agreement betwe~n Lessor and the United States relative to the maintenance, operation or development of the Airport. ' 8. It is understood and agreed that the' rights granted by this Agreement will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the Airport. 9. There is hereby reserved to the Lessor, its successors and assigns, for the use and benefit of the public, a free and unrestricted right of fl ight for the passage of aircraft in the airspace above the surface of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace or landing at, tak~ng,off from, or opera- ting on or about the Airport. ARTICLE VI - IMPROVEMENTS AND MAINTENANCE 1. Lessee agres that construction of all facilities, improvements or appurtenances on or in connection with the Lease Premises is prohibited without the express written consent of the Lessor before commencement of said construction. All facili- ties, improvements, or appurt"enances proposed for construction shall comply with all "existing applicable codes, ordinances, laws and regulations relating thereto. . 2. Lessee agrees that T-Hangars constructed within the designated "T-Hangar Development Area" will be.built in structures con- taining no fewer than ten (10) units each. e. e -9- 3. The Lessee agrees that no obstruction to air navigation as such are defined from time to time by, appl ication of the criteria' of Pa'rt 77 pf the Federal Aviation Regulations or subsequent and additional regulations of the Federal Aviation Administration will be constructed or permitted to remain on the Leased Premises. Any obstructions shall be. renoved by the Lessee 'at its expense. The Lessee agrees, not to increase the height of any structure .or obj ects or permit the growth of plantings of any kind or nature whatsoever that would interfere with the.line of sight of aircraft operating on or abov~ the Airport in airspace protected under rules pr'es'cribed by FAR Part 77. The Lessee further agrees not be install any structures, obj ects, mach inery or equ ipment that would interfere with oJ?eration of navigation aids or .that would interfere with,the safe and efficient operations of the Air- port, or interfere with the operations of other tenants and users of the Airport. 4. The Lessee agrees that all utility services required by it during the lease term for the Lease Premises must be paid for by the Lessee including the maintenance cost of service I in es. . 5. The Lessee agrees, at its ow.n expense, to cause the Leased Premises and any improvements and apputenances thereto to be maintained in a tenantable and in a safe, neat, clean and presentable condition including, but not limited, to the necessary mowing and snow removal of the Leased Premises during the appropriate periods of the year. 6. The Lessee agrees, at its own expense to keep and maintain in good repair, all structures, pavements, utilities and all other improvements and appurtenances within and upon the Leased Premises. . Lessee further agrees that Lessor shall have no maintenance responsibilities with respect to the Leased Premises. 7. . Lessee agrees,.. at his own expense, to remove all waste, gar- bage, and rubbish from the Lease Premises, and agrees not to deposi t the same on any part of the Leased, Premises except temporarily in connection with collection for removal. No waste, garbage or rubbish will at any time be d,eposited on . any other area of, the Airport. 8. Lessee agrees to provide, at its own expense, such janitor, toilet, and cleaning services and supplies as may be neces- sary or required in the operation and maintenance of tl)e Leased Premises and the improvements and appurtenances there- to. e. e -10- 9. The Lessor and its authorized officers, employees, agents, contract9rs, subcontractors, and other representatives shall have the right to enter upon 9r' in t~e Leased Premises and any improvements thereon for th~ ~ollowing ~urposes: A. To insp,ect the Leased Premises 'and any improvements there- on at reasonable intervals during regular business hours or at any time in case of. emergency, to determine whether .the Lessee has compl ied and is complying wi th the terms and conditions 'of this Agreement and Lease with respect to such Leased Premises. B. To perform any and all things which the Lessee is obli- gated to do and has failed, after reasonable' notice to do so, including maintenance, repairs and replacements of any portion of the .Leased Premises, improvements or appurtenances thereto, in which event the Lessee agrees to reimburse the Lessor for reasonable costs thereof promptly upon demand, as set forth herein before. c. In the exercise of the Lessor's pOlice power. D. To inspect the Leased Premises and perform any and all things with reference thereto which t~e Lessor is obli- gated or authorized to do as set forth herein. No such entry by or on behalf of the Lessor within or upon the Leased Premis.as or any improvements thereon shall cause or constitute a termination of the letting thereof or be deemed to constitute an interference with the possession thereof by the Lessee. 10. Upon termination of this Agreement and Lease at the expira- tion of the, term or for any other reason or cause, the Lessee shall have the right to remove any structures or other im- provements and all machinery, fixtures, apparatus and equip- ment owned by the Lessee and locted onthe Leased premises . for a period of 120 days after said termination date and upon payment of rentals as provided in Article III hereof to the date of removal of said improvements. The Lessor shall be entitled to have the Lease Premises herein demised returned to it clear of all improvements owned by the Lessee and may require the Lessee to' make such restoration by written noti- fication within 120 days following termination of this Agree- ment and Lease: and, in the event of the failure by the Lessee to restore the Leased Premises as herein required, within 120 days of said written notification, then the Lessor e. e -11- may make such restoration at the Lessee's expense. In the event that Lessee does not remove all said improvements or equipment, and the Lessor elects not to require said restora- tion of the Leased Premises, then upon the expiration of 120 days from the date of termination of this Agreement and Lease, all structures or other improvements and all machinery, fixtures, apparatus and equipment located on' the Leased Premises shall become the property of the Lessor. ARTICLE VII - INDEMNIFICATION AND INSURANCE 1. The Lessee covenants and agrees to indemnify and save harmless the City of La Porte, its officers, agents and employees, their successors and assigns, individually or collectively, from and against al liability for any fines, claims, suits, liens, demands, actions or. cause' of action of any kind an nature for personal injury or death, or property damage in any way arising out of or resulting from any activity or operation of the Lessee on the Leased Premises or in connection with its use of the Leased Premises, and the Lessee further agrees to pay all expenses in defending against any such claims made.against the Lessor, including reasonable attorney's fees; provided, however, that ,the Lessee shall not be liable for any injury, damage or loss occassioned by the sole negli- gence or willful misconduct of the Lessor its agents or employees. The Lessee and the Lessor shall give prompt and timely notice of any claim made or suit instituted which, in any way, directly or ind irectly, conting ently or otherwise, affects or might affect either party. If the Lessee fails, after written notice from Lessor, to so save harmless and in- demnify Lessor, Lessor shall have the right, in addition to its other legal remedies, to declare a default in Lessee's obligation to fulfill and comply with the terms and conditions of this Lea'se, and Lessor may then proceed to termination of the Lease pursuant to Article IX hereof. 2. .The Lessee shall procure and maintain in effect during the term of this Agreement and Lease insurance with companies licensed to do business in the State of Texas, and naming the Lesso~ as an additional -insured and containing a cross liability agreement, providing the following coverages: AIRCRAFT LIABILITY Bodily Injury One Hundred Thousand Dollars ($100,000.00) each person One Million Dollars (1,000,000.00) each accident Property Damage Five Hundred Thousand Dollars ($500,000.00) each accident e' e -12- Passenger L~gal Liability One Hundred Thousand Dollars ($100,000.00) each passenger seat Or altrnatively a single limit 'l€gal-~iability policy (public liability, property damage and passenger liability) of not less than One Million Dollars ($1,000,000.00) which may include a limit of One Hundred Thousand ($100,000.00) each person or passenger. COMPREHENSIVE PUBLIC LIABILITY AND COMP~EHENSIVE PROPERTY DAMAGE Bodily Injury One Hundred Thousand Dollars ($100,000.00) each person 'One Million Dollars ,($1,000,000.00) each accident Five Hundred Thousand Dollars ($500,000.00) each accident Property Damage Or alternatively a single limit legal liability policy (public liability and property damage) of not less than One Million Dollars ($1,000,000.00) which may include a limit of One Hund- 'red Thousand Dollars ($100,000.'00) each person. 3. A certified copy of each policy evidencing the exi'stence there- of shall be delivered to the Lessor within ten (10) days after the execution of this Agreement and Lease. Each such copy shall contain a valid provision or endorsement that the policy may not be cancelled, tenninated, changed or modified without giving ten (10) days written advance notice thereof to the Lessor. Each such policy shall not, without obtaining express advance permission from the Les'sor, raise any defense defense involving in any way the immunity of the City of La Porte, its members, officers, agents, or employees, the governmental nature of the Lessor, or the provisions of any ~tatutes respecting suits against the City. 4. The Lessee shall furnish to the City satisfactory eviden<?e that it carries Workmen I s Compensation Insurance in accordance with the laws of the State of Texas. 5. In the event that any repairs, alterations, additions, or improvements are made, in, on or to the Leased Premises by reason of the use and occupancy of the Leased Premises by the Lessee, then the Lessee covenants and agrees to make such repairs, alterations, additions, or improvements in, on or to the Leased Premises at its own expense. The Lessee covenants and agrees to indemnify and save harmless and e. -13- e Lessor from and 'against all expenses, liens, claims, or damages to either persons or property which mayor might arise by reason of any repairs, alternations, additions" or improvements made by the Lessee in, on, or to the .Leased Premises. ARTICLE VIII - TERMINATION OF LESSEE 1. In addition to all other remedies available to the Lessee, this Agreement and Lease shall be subject to cancellation by the Lessee should anyone or more of the following events occur: A. The permanent abandonment of the Airport. B. The issuance by any court of competent jurisdiction of any inj unction preventing or restraining the use of the Airport in such manner, as to substantially restrict the Lessee from conducting its fixed base operation, and the remaining in force of such injuction for at lease sixty (60) days. C. The breach by the Lessor,of any of the terms, covenants, or conditions of this Agreement and Lease to be kept, performed, and observed by the Lessor, and the failure of the Lessor to remedy ,such breach for a perioq of sixty (60) days after written notice from the Lessee of the existance of such breach. D. The assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the Airport and its facilities in such.a manner as to substantially restrict the Lessee' from conducting its operation, if such restrictions be continud for a period of three (3) months or more. , ARTICLE IX - TERMINATION BY LESSOR 1. In addition to all other remedies available to the Lessor, ,this Agreement ,and Lease shall be subj ect to cancellation by the Lessor should anyone or more of the following events occur: A.- If the Lessee shall file a petition of bankruptcy; or if proceedings in bankruptcy shall be instituted ag'ainst it and it is thereafter adjudicated a bankrupt pursuant to proceedings; or if a court shall take jurisdiction of the Lessee and its assets pursuant to proceedings brought under the provisions of any Federal Re-Organization Act; or if a Receiver for the Lessee's assets is appointed; . e -14- or if the Lessee shall be divested of its rights, powers and privileges under this Agreement and Lease by other operation of law. ' B. If the Lessee shall default. in or fail to make any pay- ments at the times and in' the amount- required of it under this Agreement and Lease. c. If the Lessee shall abandon and discontinue the conduct of a fixed base operation. D. I~ the Lessee shall fail to perform, keep and observe all the covenants and conditions contained in this Agree- ment and Lease to be performed, kept and observed l?y it. E. If the Leasee .shall fail to abide by all applicable laws, ordinances, rules and r~ulations of the' United States, State of Texas, or the City ,of La Porte. Provided that upon happening of any of the contingencies re- cited in subparagraphs B, C, D and E above the Lessor shall give wri tten notice to the Lessee to correct or cure such default, failure to perform or breach and if, within thirty (30) days from ,the date of such notice, the default, failure to perform or breach complained of shall not have been cor- rected in a manner satisfactory to the Lessor, then, and in such event, the Lessor shall have the right at once' and wi thout further notice to the Lessee to declare this Agree- ment and Lease terminated and to enter upon and take full possession of the Leased Premises and Leased Facilities and, prov ided further that upon the happen ing of anyone of the contingencies enumerated in subsection A hereof, this Agree- ment and Lease shall be deemed to be breached by the Lease and thereupon ipso. facto and without en~ry or any other action by the Lessor, the Agreement and Lease shall terminate, subj ect to b'e reinstated only if such involuntary bankruptcy or insolvency proceedings, petitions for reorganization, trusteeship, receivership, or other legal act divesting the Lessee of its rights under this Agreement and Lease shall be denied, set aside, vacated or terminated in the Lessee's favor within forty-f ive (45) days from the happening of the contingency. Upon the . happening of said latter event, this Agreement and Lease shall be reinstated as if there had been no breach occassioned by the happening of said contingencies provided that the Lessee shall within ten (10) days discharge any and all sums of money which may have become due under this Agreement and Lease in the interim and shall then remain unpaid and shall likewise fully perform and discharge all other obligations which may have accrued and become payable in the interim. The acceptance of rentals and fees by the e' e -15- Lessor for any period or periods after a default of any of the terms, covenants, and conditions herein contained to .be performed, kept and observed ,by the.. Lessee shall not be deemed a waiver of any rights ,o~ the Lessor to cancel this Agreement and Lease for failure by the Lessee to so perfo~, keep, or observe any of the terms of this .Agreement and Lease to be kept, performed, and observed by the Lessee. ARTICLE X - ASSIGNMENT AND SUBLETTING 1. The -activities, uses, privileges and obligations authorized nerein are personal and the Lessee agrees that it will not assign, subcon tract, subl et, or und erlet the same or any portion thereof,. or ~ssign, sub-contract, sublet or underlet the Leased Premises or any portion thereof without the expres- sed consent of th~ Lessor in writing and any purported assignment or sub-contract in violation hereof shall be void. In no case, how.ver, may the activities, uses, privi- leges and obI igations authoriz ed herein or the Leased Premises or any portion thereof be assigned, sub-contracted, subl et, or underlet by the Lessee 'for any use other than herein specified. All provisions of this Agreement and Lease appli- cable to the Lessee hereunder shall be equally binding upon any party to which the activities,- uses, privileges and obligations authorized herein, Leased Premises are assigned, sub-contracted, sublet or underlet. 2. The Lessor w ill not be unnecessarily arbi trary in granting said permission, but the Lessor shall be the sole judge as to the reliability, capability, character, and desirability of the parties involved. ARTICLE XI - HOLDING OVER 1. In the event the Lessee shall hold over and remain in posses- sion of the Leased Premises herein leased after expiration of this Agreement 'and Lease without any written renewal thereof, such holding over shall not be deemed to operate as a renewal or extension of this Agreement and Lease but shall only create a tenancy from month to month which may be termi- nated - at any time by the Lessor. ARTICLE XII - SUCCESSOR AND ASSIGNS BOUND BY COVENANTS 1. All covenants, stipulations and agreements in this Agreement and Lease shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereto. .' e -16- ARTICLE XIII - GENERAL PROVISIONS 1. Notices to the Lessor provided for in tbis Agreement and Lease shall be sufficient if sent by ge.rtified ol" registered mail, postage prepaid, addressed to the City MaRager, the City of La Porte, aox 1115, La Porte, Texas 77571, and notices to the Lessee if sent by certified or reg istered mail, postage paid addressed to Bayport Aviation, 'Inc., Post Office Box 656, La Porte, Texas 77571, or to such other respective address as the parties may designate to each oth-er from time to time in ~riting. . 2. The Lessee represents that it has carefully reviewed the terms and conditions of. the Agreement and Lease and is familiar with such terms and conditions and agrees faithfully to comply with the same to the extent to which said terms and conditions apply to its activities, authorized and required by this instrument. 3. The term "Lessor" as used in this Agreement and Lease means the Ci ty of La Porte, and where this Agreement and Lease speaks of approval and con'sent by the Lessor, such approval is understood to be manifested by act of the City Manager, except as otherwise expressly stated in this Agreement and Lea s e. ARTICLE XIV - INVALID PROVISION 1. In the event that any covenant, ~ondition or provision herein conta ined is held to be inval id by any Court of competent jurisdiction, the invalidity of any such covenant, condition, or provision shall in no way affect any other covenant, condition or provision herein contained: provided that the validity of "any such covenant, condition, or provision does not materially prejudice either the Lessor or the Lessee in its respective rights and obligations contained in the valid covenants, conditions, or provisions of this Agreement and Lea s e. ARTICLE XV - FEDERAL REQUIREMENTS 1. The right to conduct aeronautical activities or furnishing services to the publ ic is granted the Lessee subj ect to Lessee agreeing: ' A. 'To furnish said services on a justly discrimanatory basis to fa ir, equal and not un- all users thereof, and B. To charge fair, reasonable, and not justly discriminatory .' -17- e prices for each unit or service1 provided, that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price re- ductions to volume purchasers. 2. The Lessee in exercising any of the rights or privileges here- in granted to it shall' not on the" grounds oOf race, color, or national origin discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of tl1e Secretary of Transportation. The Lessor is hereby granted the right to take such action, anything to the contrary herein notwithstanding, as the United States may direct to' enforce this nondiscrimination cov enim t. . 3. The Lessee assures that it will undertake an ,affinnative action program as. required by 14 CFR Part 152, Subpart E, to insure that no person shall, on the grounds of race, creed, color, national origi.n, or sex be excluded from participating in any anployment ativities covered in 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be ex- cluded on these grounds from participating in or receiving the services or benefits of ~ny program or activity covered by this subpart. The Lessee assures that it will require that its covered suborganizations provide assurances to the Lessee that they similarly will. undertake affinnative action programs and that they will require assurances from their suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect. ARTICLE XVI - FAVORED NATIONS CLAUSE 1. Lessor covenants and agrees not to hereafter enter into,any lease, contract, or agreement, or any renewal of any existing leases, with any other party with respect to the Airport, containing more favorable terms than this lease or to grant to any other operator rights, privileges or concessions with respect to the Airport which are not accorded to Lessee hereunder, unless the same rights, privileges and concessions are concurrently and automatically made available to Lessee. It is understood and agreed that the intent of the parties in this paragraph is to provide that Lessee shall not be put at a competitive disadvantage with any ,other' operator rights,- privil~es or concessions which have not- been granted' to Lessee or tenns and conditions' "more favorable than those enjoyed by Lessee. IN WITNESS WHEREOF, the parties have caused these presents to be signed by their duly authorized representatives. e e e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested October 28 200 Requested By: John ArmStrong Department: Le,gal Appropriation Source of Funds: Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Amount Requested: Exhibits: Aereement Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The attached Ordinance approves an agreement between City of La Porte and Mr. Herrera regarding his resignation, effective October 14,2002. The terms are consistent with the Mr. Herrera's Employment Agreement. Action Required bv Council: Approve Ordinance authorizing severance agreement with Robert T. Herrera. ~)?f :lOtC(( Date ) . e ORDINANCE NO. 2002- ~5Cfd- AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND ROBERT T. HERRERA, KAlCING 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 Mayor is hereby authorized to execute such document and all related documents on behalf of the city of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during. which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. e e PASSED AND APPROVED, this 28th day of October, 2002. CITY OF LA PORTE ~tF~~/e-- 'N man L. alone Mayor ATTEST: ~d- {Y. 1~D.U/ Martlia A. Gillet City Secretary ~~zJc-L Knox W. Askins city Attorney By: 2 e e AGREEMENT STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ THIS AGREEMENT, made and entered into effective October 14, 2002, by and between the CITY OF LA PORTE, a municipal corporation, hereinafter referred to as "City", and ROBERT T. HERRERA, hereinafter referred to as "Herrera". RECITATIONS City, as employer, and Herrera, as employee, have heretofore entered into an Employment Agreement dated August 27, 2001, wherein City employed the services of Herrera as City Manager under the terms and provisions of the Home Rule Charter of the City of La Porte. Herrera has submitted his resignation to City, effective October 14, 2002. Said resignation was accepted by the City Council of the City of La Porte at a regular meeting that began on October 14, 2002. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: 1. City shall pay to Herrera, as severance pay and liquidated damages, twenty-four (24) weeks salary and benefits, payable in installments over City's normal pay periods. In the event Herrera secures other employment during such 24-week period, the amount of such salary payment shall be reduced by the amount of salary payment received by Herrera from such new employment. Herrera shall be compensated for any accrued sick leave, vacation, and longevity accrual to and including October 14,2002. Herrera shall not be eligible for automobile allowance, e e Texas Municipal Retirement, or medical benefits for himself and his dependents, subsequent to October 14, 2002. City shall assist Herrera in applying for COBRA benefits, if desired. Herrera shall be eligible for dental and vision benefits through November 30, 2002. Herrera's group life insurance policy shall continue in force through October 30, 2002. Herrera, at his option, may continue his executive life policy, $50,000.00 face amount, at his own expense. Nothing herein shall limit or prevent Herrera's right to retire from the City of La Porte and receive all retirement benefits to which he is or would be entitled to receive from the Texas Municipal Retirement System as a result of such retirement. 2. Each party to this Agreement, City and Herrera, releases the other party hereto, his or its agents, servants and employees, and all other persons, firms, corporations and parties, of and from any and all liability, actions, causes of actions, claims, demands, or suits whatsoever, which either party may now or hereafter have or claim to have, on account of or arising out of the employment of Herrera or the Employment Agreement between the parties dated August 27, 2001, and otherwise, whether arising out of tort or contract, or involving any impairment or damage to any right, including but not by way of limitation, rising out of said employment or Employment Agreement. 3. This Agreement shall become effective commencing October 14, 2002, and shall constitute the entire agreement between the parties. 2 e e WITNESS OUR HANDS, effective the 14th day of October, 2002. ATIEST: Martha Gillett City Secretary 3 CITY OF LA PORTE By: ~~A/-- , orman L. Malone, Mayor "City" and "Employer" G<~\. ~~ ROBERT T. HERRERA "Herrera" and "Employee"" TELEPHONE: (28]) 428-2200 John D. Armstrong Askins & Armstrong, P. C. Attorneys at Law 702 W. Fairmont Parkway P.O. Box 1218 La Porte, Texas 77572-1218 e RANDALL B. STRONG ATTORNEY AT LAW SUITE 306 .1515 N. ALEXANDER BAYTOWN, TEXAS 77520 e 0:::-.:> /-:,.' ---- i . I :- '-10............, .- .......--- '>.::..' .." November 8, 2002 Iffii ~ ~ ~ ~ \VI ~\D)1 \ iI-lip/)2- ll:U\ I'.,.v.'....,~ & ARM~~ ,Re: Agreemerit between the City of La Porte and Robert T. Herrera Dear Mr. Armstrong: Enclosed please .find one copy of the above agreement signed by all parties. The other signed copy has been retained by Mr. Herrera. Please call if you have any other questions regarding this matter. RBS/lp c Robert Herrera c:\... Ibcrreralannslrong,OO I , Sincerely, ~cJ1 ~~J;f Randall B. Strong . (If} --. \ .,.-... .. ,. i!....J ......-- e . e- e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: October 28 2002 I Aoorooriation Source of Funds: Requested By: John Joems Actin Department: Account Number: Report: Resolution: OrdinaKe: X Amount Budgeted: Exhibits: Ordinance 2002- Amount Requested: Exhibits: Aereement Budgeted Item: YES Exhibits: SUMMARY & RECOMMENDATION The contact between the City of La Porte and the La Porte-Bayshore Chamber of Commerce for'collection and disbursement of HoteVMotel Ta.'l: monies has expired. During the budget workshop on August 20, City Council agreed to renew the agreement with the Chamber and an increased base contribution from $26,000 to $40,000 per year based on the. following provisions: .:. Renewal of agreement similar to the previous agreement for a 3-year period .:. A base contribution not to exceed $40,000 per year .:. Any increase in the base contribution will be based on the annual perfonnance report and the annual budget submittal by the Chamber and shall be approved by City Council + Any new special event promoted by the Chamber of Commerce should be included in the annual budget submitted by the Chamber. A one-time contribution for any new special event may be considered by the City based on the merits of the special event and City Council's approval. The above language has been added to the agreement and highlighted for easy detection. If Council approves the agreement, it will be forwarded to the Chamber for approval. Staff recommends Council approve renewal of an agreement with the La Porte-Bayshore Chamber of Commerce for a base contribution not to exceed $40,000 per year. Action Reauired bv Council: Consider approval of an ordinance approving an agreement between the City and the La Porte-Bayshore Chamber of Commerce. /rJJ,,);. Date" e e ORDINANCE NO. 2002-0159':; AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE LA PORTE-BAYSHORE CHAMBER OF COMMERCE; 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 Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 23rd day of September, 2002. a4 30rte By: ~ ~ orman Malone, ~r ~~~~~ City Secretary 'e City of La Porte Established 1892 October 1, 2002 Ms. Colleen Hicks, President Chamber of Commerce P.O. Box 996 La Porte, Texas 77572-0996 Re: Agreement for General Promotion of La Porte Dear Ms. Hicks: The attached Draft Agreement between the City of La Porte and the La Porte - Bayshore Chamber of Commerce incorporates a new base funding level approved by City Council plus opportunities to submit for funding for special one-time events. It also incorporates new language to bring into compliance with legislation regarding use of Hotel I Motel Funds. Last, there are a few minor additions and clarifications. The draft is shaded where changes/new language occurs. Please review and respond at your convenience. I plan to place this item on th~ October 14, 2002 Council Agenda. --........ '" JJ/ml 604 W, Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020 e e DRAFT THE STATE OF TEXAS COUNTY OF HARRIS This agreement made and entered into effective the 1 St day: of October, 2002, by and between the City of La Porte, a municipal corporation, hereinafter called "City", and The La Porte - Bayshore Chamber of Commerce, a non-profit corporation chartered under the Laws of the State of Texas, hereinafter called "Chamber," WITNESSETH: WHEREAS, City has an ordinan,?e providing for the assessment and collection of a Hotel Occupancy tax in the City of La Porte of four percent (4%) of the consideration paid by the occupant of a room, space or facility in any hotel/motel; and WHEREAS, the Chamber is equipped to advertise and conduct solicitation programs to acquaint potential users with public meeting and convention facilities and to promote tourism and advertise the City of La Porte; and WHEREAS, it is to the mutual benefit of the City and Chamber that the City provide funds to the Chamber for the above stated purposes and that the Chamber use such funds for the above stated purposes; NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, City and Chamber hereby agree as follows: SECTION I. Chamber shall employ its best efforts for general promotional and tourist advertising of the City of La Porte and conducting solicitation and operating programs to contract conventions and visitors, including the establishment and operation by Chamber of a convention and visitors bureau. SECTION II. ~s ~_ ,?onsideration for ~e sC?~i~es ~~t f~rth, in Paragraph 1 hereof, City agrees to pay to Chamber a"base amount equal to rw:ei1tY-:-fiv~ percent (25%) of the amount actually collected by the City up to an amount not to exceed ~~O,~OO Pet: year from the Hotel Occupancy Tax in any City fiscal year during the term of this agreement. During the"t~'broft.hi~': ~if.~~f;:ariy'hicr~e' in:':tb~,baSe: contrlbutiQn \Viii. be b'aSe<f'oi{a r~vie~of.ihe. ~~ pen~~~ce"r~ort ~d. ~e ~ual:b~dg~~ sub~tted by the Chamber:'.' APi in~~ase~n tJ:le. ~~'~_ ~J?tpp:4~i9n. sh~l :beapprQyed)y.~GitY. ,~~un~iL A one~~e ooittribhtioIt J<?E.~Y" ne~ sp~c~iiI - ~v~i1t ~ay' ~~;-~rl$.ld€?~:l;y the ,City' based:on $e meritS; o{$e.. ,sp'~cial:~yei1ti.an4:City. G()4ticil'~~~ppi~vai;~.::: AD~;'speci~ ~ven~. pr<?motedJ>ythe, . i . . . '. I' " . t . ".1 ,". . ~_ '"'': j'" .' . " . .' I . I to . ~..'. ., Ch~ber- of ~~;rim~c'e. sh9~.dQe ~~hi~~ W tl,1~ ,a.mi~~:, btidg~t~ubmitted' pythe Chambt?I",: e e SECTION III. The term of this contact is for three (3) years and expires on Sept~b~ 30, 2005. No less than ninety (90) days prior to the expiration of the initial 3-year term of this agreement, the City and Chamber may renegotiate the cap level as established in Section II. SECTION N. In the event written notice is not given by either party, to this agreement, to the other party ninety (90) days prior to the termination date as noted herein, this agreement shall be extended on the same terms and conditions for an additional two (2) years. SECTION V. T,he 9tY,shall, on or before the 45th day following the end of each quarter, pay twenty-five percent (25%) of any amount of the monies collected for that quarter, to the Chamber until the not t<<;> exceed. figure of$40;pdo: 'is (eached. The quarters will end on the 31 st day of March, the 30th day of June, the 30th day of September and the 31 sl day of December of each year. SECTION VI. The Chamber agrees that it will record expenditures involved in this program on a monthly basis in separate accounts. The books of account will be maintained in a form approved by the City of La Porte. The Chamber agrees to forward a quarterly report to the City on expenditures involving the use of City funds. Chamber further agrees that the report will be forwarded on or before the 30th day following the end of the quarter. SECTION VII. The Chamber agrees, yearly, to prepare an annual budget on the use of hotel/motel funds received from the City of La Porte and to submit it to the La Porte City Council for approval. The budget submitted to City Council will coincide with the City's fiscal year. For the first year of this agreement, the Chamber agrees to submit the budget to Council by Decem1>er 1, ~002. For all future years, Chamber agrees to submit the budget on or before August 10th of each year. SECTION VITI. The delegation'to.the Cha.m~er of.~y actiV;ities fundCd by'this agreemenfrequires the Chamber; before ;making 'ah. exp~difure~ to prpvide writttm: infomi~~on' to, the ~unicipality ~at indi~tes ~ . .: . . 1.," . . . . '. . ,. ... ~ . ~ ~ .. , . , .' .' _ . which schedul~ a~tiviticts,,'.pr~grams, ev:ents, qr ~drirlnis~~~e,: costs are directly enhancing, and ,. . ,.. ," .' . .. .... . t ., . P!omQ~g iOU:Ii~ril a.n4 We'.~nv~ti9Ii and h~tel,iJ:ld~trY..: ....\... .". .a.. .' ...,~",.. .... "'-'" 'f\. - r'. ..... . .~ ..... .,.......... .' ..~ . ."-. . '. I' . This: req~ed: ,list sl1all' 'be'Lp!oVidect' to ,the. ~itY~anage(s . officf for, review' and filing. with', tli~ 9ffi~~.Qf.the' G~iY:.S~~; e e SECTION IX. Thirty (30) days after September 30, the end of every fiscal year, the Chamber will furnish to City a performance report of its work under this contract, which shall reflect overall activity, meetings, conventions and conferences conducted, identity, and amount of advertising conducted, copies of literature produced as well as a description of direct mailings in the last year, and the expenditures during the year of the funds received pursuant to this contract. SECTION X. The City reserves the right to audit, utilizing its staff or outside assistance, the annual financial activity of the Chamber that relates to the use of hotel/motel funds. SECTION XI. ., It is understood and agreed that Chamber shall not in any sense be considered a partner or joint venturer with City, nor shall Chamber be considered nor in any manner hold itself out as an agent or official representative of City. Chamber shall be considered an independent contractor for the purposes of this agreement and shall in no manner incur any expenses or liability on behal f of City. SECTION XII. Chamber does further agree to hold City harmless from any and all claims by third parties for any injuries, damage or liability occasioned by Chamber in connection with this agreement. SECTION XIII. It is understood and agreed that this contract shall be terminated upon occurrence of any of the following events: a. The giving of written notice by either party to the party at least ninety (90) days prior to the date of termination; b. The termination of the corporate existence of Chamber; c. The insolvency of Chamber, the filing of a petition in bankruptcy, either by or against Chamber, or an assignment by Chamber for the benefit of creditors; d. The breach by Chamber of any of the terms and conditions of this agreement and the continuation of such breach for a period of ten (10) days after written notice is given by City to Chamber of such breach; SECTION XIV. In the event of the termination of this agreement as provided in Section XII hereof, Chamber shall submit to City a statement showing any expenses incurred by it for the present year in which said termination takes place and City agrees to reimburse Chamber, to the extent that said monies are collected from the Hotel Occupancy Tax during that year, an amount equal to the lesser of the expenses incurred by the Chamber during that year or the amount of tax collected -'.-.':.-~--"'.-- I~~"'"~''''''''' ..... ....,. ~ t for that year o!>ijgated:t>y)~i~$' ,~gre~ent. City ~l~.o ~ealizes that Chamber may have committed themselves to pay expenses for conventions o~ activi4e~ that will occur after the termination of e e this agreement, and City agrees to reimburse the Chamber for such expenses up to the cumulative sum of $1,000.00 from the Hotel Occupancy Tax. SECTION XV. This contract is not assignable. SECTION XVI. Any notice required to be given under the terms and provisions of this agreement shall be effective if and when given in writing and deposited in the UJ?ited States Mail, certified or registered mail, retum receipt requested, on the date so deposited and addressed to the respective parties a,s follows: City Manager City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Executive Vice-President La Porte - Bayshore Chamber of Commerce P.O. Box 996 La Porte, Texas 77572-0996 SECTION XVI. All the terms, condition and stipulations of this contract are subject to all applicable federal laws, and Charter of the City of La Porte, all ordinances passed pursuant thereto and all judicial determinations relative thereto. WITNESS OUR HANDS, effective the 15t day of October, 2002. City of La Porte By: Norman Malone, Mayor ATTEST: City Secretary APPROVED: City Attorney LAPORTE-BAYSHORE CHAMBER OF COMMERCE By: President ATTEST: Secretary e e THE STATE OF TEXAS COUNTY OF HARRIS This agreement made and entered into effective the 1 st day of October, 2002, by and between the City of La Porte, a municipal corporation, hereinafter called "City", and The La Porte - Bayshore Chamber of Commerce, a non-profit corporation chartered under the Laws of the State of Texas, hereinafter called "Chamber," WITNESSETH: WHEREAS, City has an ordinance providing for the assessment and collection of a Hotel Occupancy tax in the City of La Porte of four percent (4%) of the consideration paid by the occupant of a room, space or facility in any hotel/motel; and WHEREAS, the Chamber is equipped to advertise and conduct solicitation programs to acquaint potential users with public meeting and convention facilities and to promote tourism and advertise the City of La Porte; and WHEREAS, it is to the mutual benefit of the City and Chamber that the City provide funds to the Chamber for the above stated purposes and that the Chamber use such funds for the above stated purposes; NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, City and Chamber hereby agree as follows: SECTION 1. Chamber shall employ its best efforts for general promotional and tourist advertising of the City of La Porte and conducting solicitation and operating programs to contract conventions and visitors, including the establishment and operation by Chamber of a convention and visitors bureau. SECTION II. As a consideration for the services set forth in Paragraph 1 hereof, City agrees to pay to Chamber a base amount equal to twenty-five percent (25%) of the amount actually collected by the City up to an amount not to exceed $40,000 per year from the Hotel Occupancy Tax in any City fiscal year during the term of this agreement. During the term of this agreement, any increase in the base contribution will be based on a review of the annual perforrtlance report and the annual budget submitted by the Chamber. Any increase in the base contribution shall be approved by City Council. A one-time contribution for any new special event may be considered by the City based on the merits of the special event and City Council's approval. Any special event promoted by the Chamber of Commerce should be included in the annual budget submitted by the Chamber. e e SECTION III. The term of this contact is for three (3) years and expires on September 30, 2005. No less than ninety (90) days prior to the expiration of the initial 3-year term of this agreement, the City and Chamber may renegotiate the cap level as established in Section II. SECTION IV. In the event written notice is not given by either party, to this agreement, to the other party ninety (90) days prior to the termination date as noted herein, this agreement shall be extended on the same terms and conditions for an additional two (2) years.. SECTION V. The City shall, on or before the 45th day following the end of each quarter, pay twenty-five percent (25%) of any amount of the monies collected for that quarter, to the Chamber until the not to exceed figure of $40,000 is reached. The quarters will end on the 31 st day of March, the 30th day of June, the 30th day of September and the 31 st day of December of each year. SECTION VI. The Chamber agrees that it will record expenditures involved in this program on a monthly basis in separate accounts. The books of account will be maintained in a form approved by the City of La Porte. The Chamber agrees to forward a quarterly report to the City on expenditures involving the use of City funds. Chamber further agrees that the report will be forwarded on or before the 30th day following the end of the quarter. SECTION VII. The Chamber agrees, yearly, to prepare an annual budget on the use of hotel/motel funds received from the City of La Porte and to submit it to the La Porte City Council for approval. The budget submitted to City Council will coincide with the City's fiscal year. For the first year of this agreement, the Chamber agrees to submit the budget to Council by December 1, 2002. For all future years, Chamber agrees to submit the budget on or before August 10th of each year. SECTION VIII. The delegation to the Chamber of any activities funded by this agreement requires the Chamber, before making an expenditure, to provide written information to the municipality that indicates which scheduled activities, programs, events, or administrative costs are directly enhancing and promoting tourism and the convention and hotel industry. This required list shall be provided to the City Manager's office for review and filing with the office of the City Secretary. . e SECTION IX. Thirty (30) days after September 30, the end of every fiscal year, the Chamber will furnish to City a performance report of its work under this contract, which shall reflect overall activity, meetings, conventions and conferences conducted, identity, and amount of advertising conducted, copies of literature produced as well as a description of direct mailings in the last year, and the expenditures during the year of the funds received pursuant to this contract. SECTION X. The City reserves the right to audit, utilizing its staff or outside assistance, the annual financial activity of the Chamber that relates to the use ofhoteVmotel funds. SECTION XI. It is understood and agreed that Chamber shall not in any sense be considered a partner or joint venturer with City, nor shall Chamber be considered nor in any manner hold itself out as an agent or official representative of City. Chamber shall be considered an independent contractor for the purposes of this agreement and shall in no manner incur any expenses or liability on behalf of City. SECTION XII. Chamber does further agree to hold City harmless from any and all claims by third parties for any injuries, damage or liability occasioned by Chamber in connection with this agreement. SECTION XIII. It is understood and agreed that this contract shall be terminated upon occurrence of any of the following events: a. The giving of written notice by either party to the party at least ninety (90) days prior to the date of termination; b. The termination of the corporate existence of Chamber; c. The insolvency of Chamber, the filing of a petition in bankruptcy, either by or against Chamber, or an assignment by Chamber for the benefit of creditors; d. The breach by Chamber of any of the terms and conditions of this agreement and the continuation of such breach for a period of ten (10) days after written notice is given by City to Chamber of such breach; SECTION XIV. In the event of the termination of this agreement as provided in Section XII hereof, Chamber shall submit to City a statement showing any expenses incurred by it for the present year in which said termination takes place and City agrees to reimburse Chamber, to the extent that said monies are collected from the Hotel Occupancy Tax during that year, an amount equal to the lesser of the expenses incurred by the Chamber during that year or the amount of tax collected for that year obligated by this agreement. City also realizes that Chamber may have committed themselves to pay expenses for conventions or activities that will occur after the termination of e e this agreement, and City agrees to reimburse the Chamber for such expenses up to the cumulative sum of$l,OOO.OO from the Hotel Occupancy Tax. SECTION XV. This contract is not assignable. SECTION XVI. Any notice required to be given under the terms and provisions of this agreement shall be effective if and when given in writing and deposited in the United States Mail, certified or registered mail, return receipt requested, on the date so deposited and addressed to the respective parties as follows: City Manager City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Executive Vice-President La Porte - Bayshore Chamber of Commerce P.O. Box 996 La Porte, Texas 77572-0996 SECTION XVI. All the terms, condition and stipulations of this contract are subject to all applicable federal laws, and Charter of the City of La Porte, all ordinances passed pursuant thereto and all judicial determinations relative thereto. WITNESS OUR HANDS, effective the 15t day of October, 2002. ~ G~~e By: ~ . ~lone, Mayor <t-- LAPORTE-BAYSHORE ~HAMBEROF~~ By: I~f~~~ ~ President A'i,(EST: ./1 ~ ~ ..:Ja(~d- Secretary (j e ...~ e. e CONSENT AGENDA e e e A e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda nalellequested: Odob~ Requested By: Steve Gillett Aoorooriation Soun:e of Funds: Motor Pool Fund Department: Public Works Account Number: Various Report: XX Resolution: _Ordinance: Amount Budgeted: 5185.796.00 Exhibits: Bid Recao Sealed Bid #0866 Amount Requested: 5182.571.71 Exhibits: Pun:hasine Memorandum Budgeted Item: X YES NO Exhibits: Vendors List SUMMARY & RECOMMENDATION Advertised, sealed bids #0866 - Heavy Trucks were opened and read on September 16, 2002. Bid requests were mailed to eleven (11) vendors with five (5) returning bids. Low bid meeting specifications for Item 1 - Six (6) Yard Dump Truck and Item 2 - 2 Y2 Ton Trash Truck was submitted by Lawrence Marshall Ford in the amount of: Item 1 - $48,765.00 less Optional Trade In Allowance of $4,800.00 and Item 2 - $55,992.00. Low bid meeting specifications for Item 3 - Asphalt Pothole Patcher was submitted by International Trucks of Houston in the amount of $88,614. 71less Optional Trade In Allowance of 56,000.00. Apparent Low Bidder, Barrett Motor Company failed to meet specifications. Staff recommends award of Items 1 - 6 Yard Dump Truck and Item 2 - 2 Y2 Ton Trash Truck to Lawrence Marshall Ford, low bidder meeting specifications. Staff further recommends acceptance of the Optional Trade In Allowance on Item 1. Additionally, it is recommended Item 3 - Asphalt Pothole Patcher be awarded to International Trucks of Houston, low bidder meeting specifications. The acceptance of the Optional Trade In Allowance is also recommended. The cost of these purchases would be $193,371. 71 less Optional Trade In Allowance of $10,800.00 for a total cost of$182,571.71. FUJl.ds in the amount of$185,796.00 were budgeted in the 02/03 Motor Pool Replacement Fund for these purchases. Action Reauired bv Council: Award bids for the replacement of Heavy Trucks as recommended by Staff. /~.h~ , Date 1.:' .;t. e e CITY OF LA PORTE INTEROFFICE MEMORANDUM SEPTEMBER 18, 2002 To: Steve Gillett, Director of Public Works Lee Allen, Equipment Services Superintendent Susan Kelley, Purchasing Manager,J ~ Bid # 0866 - Heavy Trucks From: Subject: Advertised, Sealed Bids #0866 - Heavy Trucks were opened and read on September 16, 2002. Bid requests were mailed to eleven (11) vendors with five (5) returning bids. Copies of the bids are attached for your review. Purchasing will be happy to assist in the evaluation process, if requested. This bid may be placed on the agenda for the City Council meeting on October 14, 2002. Please remember to submit your recommendation with an agenda request form to the City Secretary and Purchasing Manager by the prescribed time. The following items should be included: ~ Bid tabulation and bidder's list as backup .~ Date of requested council meeting ~ Explanation of recommendation, other than low bid Attachment: Bid Copies Bid Tabulation Bidder's List BID TABl)LATION BID # 0866 - HEAVY TRUCKS LONE STAR TRUCK CENTER NTERNA TIONAL TRUCKS OF HOUSTON BAYOU CITY FORD BARRETT MOTOR CO LAWRENCE MARSHALL FORD QTY DESCRIPTION $60,984.34 ($4,500.00) $56,484.34 $55,268.68 ($6,500.00) $48,768.68 $52,562.00 NO BID $52,562.00 $50,841.00 ($6,000.00) $44,841.00 $48,765.00 ($4,800.00) $43,965.00 1 Yard Dump Truck Less Optional Trade-in Allowance Item #1 Total Six (6) 1) - $69,373.01 $69,373.01 $68,769.00 $68,769.00 $57,756.00 $57,756.00 $60,050.00 ~60,050.00 $55,992.00 $55,992.00 1 2-1/2 Ton Trash Truck 2) NOBID $88,614.71 ($6,000.00) $82,614.71 $109,598.00 NO BID $109,598.00 $86.447.00 ($5,000.00) $81,447.00 NO BID Item #2 Tota Asphalt Pothole Patcher Less Optional Trade-in Allowance Item #3 Total 3) e nformation reflects pricing only and other factors may be considered during the evaluation process '. ~.. e e BIDDER'S LIST SEALED BID #0866 - HEAVY TRUCKS BAYOU CITY FORD 3625 EASTEX FRWY HOUSTON, TX 77026 DAVIS TRUCK & EQUIPMENT PO BOX 33 CLIFTON, TX 76634 H.D. INDUSTRIES PO BOX 8250 JACKSONVILLE, TX 75766 HOUSTON FREIGHTLlNER 9550 NORTH LOOP EAST HOUSTON, TX 77029 INDUSTRIAL DISPOSAL SUPPLY PO BOX 8623 HOUSTON, TX 77249 INTERNATIONAl'TRUCKS OF HOUSTON 8900 NORTH LOOP EAST HOUSTON, TX 77029 LONE STAR TRUCK CENTER PO BOX 21127 HOUSTON, TX 77226-1127 HElL OF TEXAS 5900 WHEELER HOUSTON TX 77023 WASTE SYSTEMS EQUIPMENT PO BOX 40878 HOUSTON, TX 77240 AKZO NOBEL 4914 FORT AVENUE WACO, TX 76710 FLEET SALES LLC 3640 W. CHESTNUT EXPWY SPRINGFIELD, MO 65802 CHAMBER OF COMMERCE PO BOX 996 LA PORTE, TX 77572-0996 BAYSHORE SUN PUBLISH DATES: SEPTEMBER 1, 2002 SEPTEMBER 8, 2002 e e B . e REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: Agenda Date Requested: Appropriation Steve Gillett Source of Funds: Vehicle Maintenance Fund Department: Public Works Account Number: 024-7074-534-9095 Report: XX Resolution: Ordinance: Amount Budgeted: $40.000.00 Exhibits:Purchasinl! Memorandum Amount Requested: $33.486.71 Exhibits: Bid Recap Sealed Bids #0870 Budgeted Item: X YES NO Exhibits: Bidders List SUMMARY & RECOMMENDATION Advertised, sealed bids #0870 - Tires were opened and read on October 7, 2002. Bid requests were mailed to eleven (II) vendors with two (2) returning bids. Low bidder meeting specifications for Section I - Light Vehicle Tires and Section 2 - Heavy Truck and Industrial Tires was submitted by Carr's City Tire in the amount of $30,726.71. The only bidder submitting a bid on Section 3 - Recaps was A to Z Tire Co. in the amount of$2,760.00. The bid for Sections 1 & 2 represents an increase of 7% over last year's bid. The bid for Section 3 represents a 21% increase over last year's bid. Staff recommends award of bid for Sections 1 & 2 to Carr's City Tire, low bidder meeting specifications. Additionally, it is recommended Section 3 be awarded to A to Z Tire Co., low bidder meeting specifications. Funds for this purchase were budgeted in the Equipment Services 02/03 Operating Budget. Action Required bv Council: Award bid for Sections I & 2 to Carr'S City Tire and Section 3 to A to Z Tire Co., low bidders meeting specifications in each section as recommended by Staff. . /.~Jz. Date / e e CITY OF LA PORTE INTEROFFICE MEMORANDUM OCTOBER 16,.2002 To: Steve Gillett, Director of Public Works Susan Kelley, Purchasing Manager .d~ Bid # 0870 - Tires From: Subject: Advertised,-Sealed Bids #0870 - Tires were opened and read on October 7, 2002. Bid requests were mailed to eleven (11) area suppliers with two (2) returning bids. Copies of the bids are attached for your review. Purchasing will be happy to assist in the evaluation process, if requested. .. If the award should go to the apparent low bidder, Carr's Tire, there would be a seven percent (7%) increase over last year's bid. . This bid may be placed on the agenda for the City Council meeting on October 28, 2002. Please remember to submit your recommendation with an agenda request form to the City Secretary and Purchasing Manager by the prescribed time. The following items should be included: ~ Bid tabulation and bidder's list as backup ~ Date of requested council meeting ~ Explanation of recommendation, other than apparent low bid Attachment: Bi~. Copies Bid Tabulation Bidder's List '- e e BID TABULATION BID # 0870 - TIRES ....nn ... \011 T DESCRIPTION QTY TIRE A TO Z TIRE SECTION #1 . LIGHT VEHICLE TIRES ITEM #1. . POLICE SPECIAL RADIAL A. P225170 HR 15 Black 40 $47.00 $47.25 B. P225/60 R 16 Black 162 $47.00 $47.25 ITEM #1 TOTAL $9,494.00 $9,544.50 ITEM #2 . PASSENGER CAR TIRES A.. P215/60 R 16 945 (057-789) 15 $38.00 $45.00 ITEM #2 TOTAL $570.00 $675.00 ITEM #3 . LIGHT TRUCKlTRAILER TIRES A. P235175 R 15 20 $38.00 $45.50 B. P235170 R 16 10 $43.00 $46.50 C. LT225175 R 16 12 $54.00 $56.00 D. LT215/85 R 16 37 $56.00 $62.00 E. L T235/85 R 16 10 $61.00 $66.00 F. LT245175 R 16 6 $57.50 $66.00 G. LT255170 R 16 8 $44.00 $52.00 H. 7.50-16 L T LR "D" Bias Trailer Tire 4 $49.00 $48.00 ITEM #3 TOTAL $5,413.00 $6,005.00 SECTION #1 TOTAL $15,477.00 $16,224.50 SECTION #2 . HEAVY TRUCK & INDUSTRAIL TIRES ITEM #1 . BACKHOE TUBELESS TIRES A. 11L X 15F3 -10Ply 4 $61.00 $7~.00 B. 11 L X 16 F3 - 10 Ply 4 $63.00 $76.00 C. 20.5 X 25 - 12 Ply L-3 2 $340.00 $469.00 D. 18.4 X 30 - 8 Ply 1 $220.00 $369.00 E. 18.4 X 340-08 Ply R-1 1 $245.00 $820.00 F. 19.5LX24-10 PlvR-4 2 $235.00 $331.00 ITEM #1 TOTAL $2,111.00 $3,397.00 ITEM #2 - TRACTOR-TUBELESS TIRES A. 25-8.50 X 14 Turf 4 Ply 1 $55.00 $55.00 B. 23-8.50 X 12 Turf 4 Ply 1 $32.00 $30.00 C. 13.6X 16Turf4 Plv 2 $112.00 $168.00 ITEM #2 TOTAL $311.00 $421.00 ITEM #3 - RADIAL TRUCK TIRES DRIVE TREAD A. 10 R 2014 Ply F/5 T-546 3 $192.00 $209.00 B. 11 R 2016 Ply F/5 T-831 1 $225.50 $250.00 C. 11 R 22.514 Ply F/5 FD-663 30 $176.00 $179.00 ITEM #3 TOTAL $6,081.50 $6,247.00 ITEM #4 . RADIAL TRUCK TIRES HIGHWAY TREAD A. 10.R 20 14 Ply F/5 T-559 1 $179.00 $213.00 B. 11 R 20 16 Ply F/S T-575 1 $205.00 $240.00 C. 11 R 22.5 14 Ply F/S T-559 8 $165.00 $163.00 D. 12 R 22.5 F/S T-575 LR "H" 2 $210.00 $235.00 E. 315/80 R 22.5 LR "J" 2 $233.00 $265.00 F. 385/65 R 22.518 Ply F/S T-839 15 $275.00 $302.00 ITEM #4 TOTAL $6,715.00 $7,287.00 ITEM $5 . TRUCK TUBES A. 10 R 20 1 $12.46 $14.00 B. 11 R20 1 $18.75 $16.00 ITEM #5 TOTAL $31.21 $30.00 SECTION #2 TOTAL $15,249.71 $17,382.00 SECTION #3 - RECAP ONLY ITEM #1 - TRUCK TIRES A. 11 R 22.5 14 Plv 30 NO BID $92.00 SECTION #3 TOTAL NO BID $2,760.00 GRAND TOTAL $30,726.71 $36,366.50 Information reflects pricing only and other factors may be considered during evaluation ... e e BIDDER'S LIST SEALED BID #0870 - TIRES A TO Z TIRE & SA TTERY 4909 DACOMA HOUSTON TX 77092 BEASLEY TIRE SERVICE P.O. BOX 11556 HOUSTON, TX 77293-1556 CARR'S CITY TIRE 1316 N. MAIN BAYTOWN,_TX 77521 DORSETT'S TIRE CENTER -6630 SPENCER HWY PASADENA, TX 77505 GCR HOUSTON TRUCK TIRE 299 GELLHORN HOUSTON, TX 77013 GOODYEAR COMMERCIAL TIRE CENTER 4411 HOMESTEAD RD HOUSTON, TX 77028 JMB TIRE & APPLIANCE CO. P.O. BOX 2469 ALVIN, IX 77512 LA PORTE TIRE CENTER 1101 W. FAIRMONT PKWY LA PORTE, TX 77571 STROUHAL'S TIRE & RECAPPING 3300 N. MCCARTY HOUSTON, TX 77029 TIRE CENTER 9252 WILLlSVILLE RD HOUSTON, TX 77013 TREADCO INCORPORATION DBA WINGFOOT 1810 S. HWY 3 LEAGUE CITY, TX 77573 CHAMBER OF COMMERCE P.o. BOX 996 LA PORTE, TX 77572-0996 PUBLISH DATES: SEPTEMBER 22, 2002 SEPTEMBER 29, 2002 e e c e e REQUEST FOR CITY COUNCIL AGENDA ITEM Aoorooriation Requested By: Steve Gillett Soun:e of Funds: III Fund Department: Public Works Account Number: 018-9883-669-5110 Report: XX Resolution: Ordinance: Amount Budgeted: 5 60.000.00 Exhibits: Pun:hasine Memorandum Amount Requested: 556.975.00 Exhibits: Bid Recao Sealed Bids #0867 Budge ed Item: X YES NO Exbibits: ~:"P.'n:a~r... L liS 1; ..~ -_'!:'~,~.. ....~. .~. SUMMARY & RECOMMENDATION Advertised, sealed bids #0867 - T.Y., Cleaning & Removal of Roots in Sanitary Sewer Lines were opened and read on October 7,2002. Bid requests were mailed to nine (9) vendors with five (5) returning bids. Overall low bid meeting specifications was submitted by The Groce Company in the amount of $56,975.00. This bid represents a 5% decrease over the current bid awarded two years ago. Staff recommends award of bid to The Groce Company, overall low bidder meeting specifications. Funds for this contract are budgeted in the InfiltrationlInflow portion of the Capital Improvements Program. Action Required bv Council: Award bid to The Groce Company, overall low bidder meeting specifications, as recommended by S~ /1J~;;!o;' , , Date . e CITY OF LA PORTE INTEROFFICE MEMORANDUM OCTOBER 16, '2002 To: Steve Gillett, Director of Public Works Susan Kelley, Purchasing Manager ~ ~ Bid # 0867 - TV, Cleaning & Removal of Roots in Sanitary Sewer Lines From: Subject: Advertised, Sealed Bids #0867 - TV, Cleaning & Removal of Roots in Sanitary Sewer Lines were opened and read on October 7, 2002. Bid. requests were mailed to nine (9) area suppliers with five (5) returning bids. Copies of the bids are attached for your review. Purchasing will be happy to assist in the evaluation process, if requested. If the award should go to the apparent low bidder, The Groce Company, there would be almost.?l five percent (5%) decrease from. the bid current bid, awarded two (2) years ago. This bid may be placed on the agenda for the City Council meeting on October 28, 2002. Please remember to submit your recommendation with an agenda request form to the City Secretary and Purchasing Manager by the prescribed time. The following items should be included: ~ Bid tabulation and bidder's list as backup >. Date of requested council meeting > Explanation of recommendation, other than apparent low bid Attachment:. Bid Copies Bid Tabulation Bidder's List ... BID TABULATION - BID #0867 TV, CLEANING & REMOVAL OF ROOTS IN SANITARY SEWER LINES SHUMAKER- HARVEY EQUIPMENT KENNY INDUSTRIAL SERVICES AAA FLEXIBLE SPECIALIZED PIPE CLEANING I MAINTENANCE SERVICES THE GROCE CO.. INC. e $37,200.00 $2,500.00 $32.380.00 510.00 $1 $19,400.00 $23,940.00 $3,500.00 $3,750.00 $24,950.00 $1,280.00 $12.550.00 $2,450.00 $4,015.00 ( $1,225.00 950.00 575.00 $16,740.00 $700.00 $9,750.00 $1 $1 $18.070.00 $690.00 $10,920.00 $1,240.00 $2.790.00 $900.00 $1,410.00 PIPE CLEANING Clean 6",8", !l10" Sewer Less Than 1/3 Pipe Debris - LF Clean 6",8", & 10" Sewer Greater Than 1/3 Pipe Debris - LF Clean 12" & 15" Sewer Less Than 1/3 Pipe Debris - LF Clean 12" & 15" Sewer Greater Than 1/3 Pipe Debris - LF Clean 18" & 21" Sewer Less Than 1/3 Pipe Debris - LF Clean 18" & 21" Sewer Greater Than 1/3 Pipe Debris - LF DESCRIPTION $2,800.00 $69,150.00 085.00 $1 $868.00 $332.50 $65,520.00 $43,390.00 $32,088.00 $32,322.50 TOTAL PIPE CLEANING T.V. INSPECTION Sewers 6" Through 21" e $38,000.00 $28,000.00 $25,300.00 $22,800.00 '$22,420.00 ROOT REMOVAL Root Removal in Sewers 8" & $6,000.00 $8,000.00 $1,600.00 $2.000.00 250.00 $1 $950.00 10' I Root $2,250.00 $2,000.00 $1,250.00 $950.00 15' 12" & Removal in Sewers $3,500.00 $17,500.00 $875.00 347.50 $1 $437.50 $332.50 18" & 21 Removal in Sewers Root $4,725.00 $5,347.50 $74,037.50 $2,937.50 $57,825.50 $2,232.50 $56,975.00 TOTAL ROOT REMOVAL GRAND TOTAL $124,650.00 $98,245.00 the evaluation. nformation reflects pricing only and other factors may be considered during ". . e BIDDER'S LIST SEALED BID #0867 TELEVISING, CLEANING AND REMOVAL OF ROOTS IN SANITARY SEWER LINES AAA FLEXIBLE PIPE CO. 3900 UNDERWOOD RD. LA PORTE, TEXAS 77571 CHIEF ENVIRONMENTAL SURVEYS 1535 N POST OAK RD HOUSTON, TEXAS 77055 GROCE COMPANY P.O. BOX 34605 HOUSTON, TX 77234-4605 INSITUFORM GULF SOUTH 16619 ALDINE WESTFIELD HOUSTON, TX 77032 KENNY INDUSTRIAL 6900 NORTH LOOP EAST HOUSTON, TX 77028 SEVERN TRENT ENVIRONMENTAL 283 LOCKHAVEN DR. SUITE 214 HOUSTON, TX 77073 SHE-CO 5716 JENSON DRIVE HOUSTON, TX 77026 SOUTHWEST UNDERGROUND 8001 HERSHEY RD HOUSTON, TX 77029 SPECIALIZED MAINTENANCE 4533 PASADENA BLVD PASADENA, TX 77503 CHAMBER OF COMMERCE P.O. BOX 996 LA PORTE, TX 77572-0996 BA YSHORE PUBLISH DATES: SEPTEMBER 22, 2002 SEPTEMBER 29, 2002 e e .. .D e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: .J Requested By: Susan Kelle /La Aoorooriation Source of Funds: Computer/General Fund Department: Administrative Services Account Number: Various Accounts Report: Resolution: Ordinance: Amount Budgeted: $59,062 Exhibits: Bid Tabulation Amount Requested: $58,722 Exhibits: Bidder's List Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Sealed RFP #0099 for Microcomputer Systems & Components - Rebid were received on September 9, 2002. Requests for Proposals were mailed to thirteen (13) area suppliers, with three (3) returning proposals. This contract is sent out for proposals on a yearly basis. rn addition to computer parts, offerors were asked to provide pricing on assembly, configuration and installation on site. During the evaluation process, Bass Computers withdrew their proposal due to the fact they do not install on site. The remaining two (2) suppliers were asked to submit pricing of volume licensing as an alternate. Although the volume licensing has a higher initial cost, savings would be recognized over the long term due to MIS staff labor and future licensing costs. Administrative Services staff met with Komputer + Peripherals and dEd- World, Inc. and verified references. Staff determined both vendors meet all specifications and would be able to sufficiently honor the computer contract. Using the evaluation criteria provided in the specifications, Komputer + Peripherals provides the best proposal for the City of La Porte. Staff Recommendation: Staff recommends award of computer parts and installation to Komputer + Peripherals. Using estimated quantities, the total cost would be $58,722, which is approximately an eight percent (8%) decrease from last year's pricing. This contract is for a one (I) year period. Action Required bv Council: Award RFP #0099 for M;icrocomputer Systems & Components - Rebid in the amount of $58,722. A ff h.~J.2- Date ' e e RFP #0099 - BID TABULATION MICROCOMPUTER SYSTEMS & COMPONENTS - REBID KOMPUTER + dEd-WORLD, BASS DESCRIPTION QTY PERIPHERALS INC. COMPUTERS ATX Tower Chassis IW-V500 30 $39.00 $42.00 $42.00 ATX Tower Chassis IW-D500 2 $39.00 $39.00 $52.00 Rack-Mount Chassis 3 $569.00 $399.00 $496.00 ATX Motherboard D815EGEW 32 $100.00 $82.00 $90.50 Keyboard - E06101USB-C USB 30 $32.00 $31.00 $32.90 Keyboard - E06101D201-C 40 $12.00 $13.00 $13.65 Natural Keyboard Pro USB 2 $42.00 $53.00 $42.00 Mouse Pro PS/2 10 $14.00 $10.00 $36.50 Mouse Pro USB 32 $20.00 $10.00 $39.50 CPU - Celeron II (Mounted) 32 . $56.00 $68.50 $59.00 CPU - Celeron II (Mounted, boxed w/fa 4 $56.00 $68.50 $65.00 265MB Ram Chips 32 $38.00 $34.00 $45.00 512MB Ram Chips 8 $70.00 $63.00 $72.00 Fixed Disk Drives - WD200BB 20GB 32 $69.00 $68.00 $70.75 Fixed Disk Drives - ST318451LC 2 $229.00 $226.50 $269.00 Floppy Disk Drives - 1.44 MB - 3.5 30 $10.00 $10.25 $10.50 CD-ROM Drives - 52X IDE 32 $25.00 $25.00 $26.50 CD-ROM Drives - IDE Rewritable 25 $115.00 $128.00 $129:00 Monitors - FE700M Flat Screen 15 $209.00 $205.50 $225.00 Monitors - TFT LCD1550M . 2 . $427.00 $445.50 $479.00 Display Cards - 64MB AGP 4 $88.00 $86.50 $96.00 Modem - H08-15328 External 2 $69.00 $64.00 $86.75 Network Hardware - Pro/100 32-Bit 5 $35.00 $36.00 $33.50 Network Hardware - 3Com SuperStack 4 $2,012.00 $2,075.00 $2,397.00 Network Hardware - Starter Kit 2 $275.00 $280.00 $330.00 Printer HP Laser Jet 1200 1 $365.00 $387.25 $436.00 Printer HP LaserJet 1200N 2 $536.00 $573.50 $653.00 Printer HP LaserJet 2600DN 1 $1,246.00 $1,281.00 $1,446.00 Printer HP LaserJet 8150DN 1 $2,772.00 $2,892.00 $2,874.00 Printer HP DeskJet 2250TN 2 $843.00 $915.00 $991.50 Scanners - HP 4470cxi - Color 2 $139.00 $136.00 $154.00 Operating Systems - XP Pro 32 $139.00 $140.00 $139.00 Microsoft Windows Server w/25 CAL 1 $1,299.00 $1,446.00 $1,255.00 Microsoft Office XP@ Pro 32 $290.00 $304.00 $299.00 Assembly & System Configuration 30 No Charge $25.00 $60.00 Installation & Configuration 30 $30.00 $25.00 $62.50 TOTAL $55,490.00 $55,383.25 $62,953.00 ALTERNATE PROPOSAL Microsoft Office XP@ Pro 32 $391.00 $409.00 N/A Volume Licensing TOTAL $58,722.00 $58,743.25 Information reflects pricing only and other factors may be considered during the evaluation e e BIDDER'S LIST RFP #0099 MICROCOMPUTER SYSTEMS AND COMPONENTS - REBID AMT, INC. 20 FEDERAL PlAZA WEST PHAR-MOR CENTRE, 2ND FLOOR YOUNGTOWN, OH 44503 BASS COMPUTERS INC 3770 WESTCHASE DR HOUSTON TX 77042 BUSINESS INT~GRA TORS 3130 ROGERDALE, SUITE #100 HOUSTON TX 77042 COMPUSA 1013 WEST BAY AREA BLVD WEBSTER TX 77598 DED-WORLD INC 1851 GULF FREEWAY LEAGUE CITY, TEXAS 77573 COMPUTIZE CORP 1008 WIRT RD., SUITE 140 HOUSTON I TEXAS 77055 DIRECTRON.COM 10641 HARWIN DRIVE HOUSTON, TX 77036 KOMPUTER PLUS PERIPHERALS 11750 WILCREST DR HOUSTON TX 77099 MULTI-COM COMPUTERS 17000 EL CAMINO REAL, SUITE 304A HOUSTON TX 77058 MCSi 747 N SHEPERD, SUITE A-800 HOUSTON, TX 77007 MULTI-SYSTEMS SUPPORT 12701 VETERANS MEMORIAL, STE 105 HOUSTON TX 77014 MILLENNIUM COMPUTERS 9700 FONDREN HOUSTON TX 77096 PC OUTLETINC 5702 GARTH RD, STE 300 BAYTOWN TX 77521 CHAMBER OF COMMERCE PO BOX 996 . LA PORTE TX 77572-0996 BA YSHORE SUN PUBLISH DATES: AUGUST 25, 2002 SEPTEMBER 1, 2002 e e E e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date ~equested: Aoorooriation Requested By: Source of Funds: Com outer Fund Department: Administrative Services Account Number: 023-9906-580-8011 Report: Resolution: Ordinance: Amount Budgeted: $29,000 Exhibits: Bid Tabulation Amount Requested: $26,760 Exhibits: Bidder's List Budgeted Item: YES NO SUMMARY & RECOMMENDATION The City is currently using ltron hand-held computer units to read water meters for Utility Billing. These units are almost 15 years old and [tron is ceasing support for hardware and software effective December 31, 2002. Therefore, aU units must be replaced and a more current software utilized. Sealed RFP #0100 for Itron Hand-held Computers (water meter reading units) were received on September 9, 2002. Requests for Proposals were mailed to five (5) suppliers provided by the manufacturer with three (3) returning proposals. During the evaluation process, staff discovered the Viena software specified in the RFP is very new to the United States and all three of the offerors recommended MVRS software. In researching this software, staff confirmed MVRS has been used for years and interfaces well with HTE, while as of this date, the Viena software is yet to be interfaced with HTE. Each offeror was asked to submit an alternate proposal for the MVRS software. Administrative Services staff held telephone conference calls with all three (3) offerors and verified references for each. Using the evaluation criteria provided in the specifications, Mountain States Pipe and Supply provides the best proposal for the City of La Porte. StatTRecommendation: Staff recommends Council award the hand-held computer units, MRVS software, and implementation! training to Mountain States Pipe and Supply in the amount of $23,340. [tron, as the manufacturer, contracts directly with the user for all maintenance and support costs. The 1st year of maintenance and support will be $3,420. Action Required bv Council: Award RFP #0100 for Itron Hand-held Computers in the amount of $26,760 to include computer units, implementation and training, MVRS software and one (1) year of maintenance and support.. /oj:Jj;z, Dale' BID TABULATION ITRON HAND-HELD COMPUTERS & SOFTWARE RFP # 00100 SOUTHEASTERN DATA COOPERATIVE $2,775.00 MOUNTAIN HOMETOWN I STATES PIPE & QTY I CONNECTIONS SUPPLY 5' $2.550.00 $2.875.00 DESCRIPTION tron G5 Hand-held Computer e: $445.00 $445.00 $445.00 5 Charging & Communications Cradle (POD) $100.00 $100.00 $10.0.00 2 Power Supply to Support 3 Cradles $60.00 $15.00 $15.00 1 POD Cradle Cable to PC $4,500.00 $2.800.00 $5,050.00 1 Total of Units & ImplementationlTraining mplementationlTraining $20,860.00 $19,615.00 $20,240.00 $3,500.00 $3,500.00 $2,750.00 Grand Total using Viena Software tron Viena Software $24,360.00 $23,115.00 $22,990.00 ALTERNATESOF~ARE tron MVRS Software e $5,000.00 $3,820.00 $3,100.00 1 $25,860.00 $23,435.00 $23,340.00 Grand Total using MVRS Software Annual Maintenance & Software Support $3,420.00 $3,420.00 $3,420,00 1 $29,280.00 $26,855.00 $26,760.00 Total Expense for 1st Year No Bid No Bid No Bid 5 Trade-in Allowance tron DCH II Hand-held Computer the evaluation process nformation reflects pricing only and other factors may be considered during e e BIDDER'S LIST RFP #0100 -ITRON HAND-HELD COMPUTERS & SOFTWARE DAFFRON & ASSOCIATES 1310 BUSNIESS HWY 61 SOUTH BOWLING GREEN, MO 63334 HOMETOWN CONNECTIONS . 122564 W 83RD WAY ARV ADA, CO 80005 MOUNTAIN STATES PIPE & SUPPLY 111 WEST LAS VEGAS COLORADO SPRINGS, CO 80903 NATIONAL INFORMATION SOLUTIONS P.O. BOX 76900 ST. PETERS, MO 63376 SOUTHEASTERN DA TA COOPERATIVE, INC 1600 ANN BRANED BLVD., APT. #1025 NORMAN, OK 73071 CHAMBER OF COMMERCE P.O. BOX 996 LA PORTE, TX 77572-0996 BA YSHORE SUN PUBLISH DATES: SEPTEMBER 1, 2002 SEPTEMBER 8, 2002 . e F e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: October 28. 2002 .J~ Requested By: Susan Kellev/Steve Gillett Aporooriation Source of Funds: General Fund Department: Administrative Services Account Number: Various Amount Budgeted: $236,100 Report: Resolution: Ordinance: Exhibits: Bid Tabulation Amount Requested: $258,173.20 Exhibits: Bidder's List Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Advertised, Sealed Bid #0868 for Gasoline and Diesel Fuel were opened and read on October 7, 2002. Bid requests were mailed to ten (10) area suppliers with three (3) returning bids. This contract is bid a minimum of once every two (2) years, with two (2) additional one (1) year optional renewal periods Bidders were asked to submit pricing above (+) or below (-) the Oil Price Information Survey (OPIS) low rack pricing, high-low average for the Houston area which is published weekly. Apache Oil Company submitted low bid meeting specifications. The following illustrates the cost difference from our current pricing, contracted four (4) years ago. Description Current Proposed Difference Bulk delivery (6,000+ gallons) Be/ow OP IS Above OP IS Plus Unleaded -.0221 + 0301 +.0522 Regular Unleaded N/A +.0301 N/A Diesel #2 w/additive -.0056 +.0424 +.0480 Non-bulk delivery (<1,000 gallons) Above OP IS Above OP IS Regular Unleaded +.0190 + .1625 +.1435 Diesel #2 w/additive +.0190 +.1925 +.1735 Staff Recommendation: Staff recommends award of fuel to Apache Oil. Using OPIS pricing during the week of October 21, 2002, the estimated yearly cost would be $258,173.20, including an additional $.2000/gallon excise tax. This represents a six percent (6%) increase over current pricing (using the same OPIS sheet). This contract is for two (2) years with two (2) additional one (1) year optional renewal periods. Action Required bv Council: Award Bid #0868 for Gasoline and Diesel Fuels in the amount of$258,173.20. /#;k~ Date ' . . BID TABULATION BID # 0868 - GASOLINE & DIESEL FUEL ~. ~_.._ UIL I:>>UN DESCRIPTION QTY COMPANY BAY OIL CO RESOURCES ITEM #1 - MORE THAN 6,000 GALLONS Plus Unleaded 72,000 0.0301 0.0400 0.0400 Regular Unleaded 60,000 0.0301 0.0400 0.0400 Diesel #2 w/additive 80,000 0.0424 0.0400 0.0400 ITEM #2 - LESS THAN 1,000 GALLONS Regular Unleaded 6,000 .1625 .0800 .2000 Diesel #2 w/additive 4,000 .1925 .0800 .2000 Information reflects pricing only and other factors may be considered during the evaluation process . . BIDDER'S LIST SEALED BID #0868 - GASOLINE AND DIESEL FUEL ADA RESOURCES, INC 6603 KIRBYVILLE HOUSTON, TX 77033 APACHE OIL CO., INC P. O. BOX 177 PASADENA, TX 77501 BAY OIL COMPANY P.O. BOX 1367 DICKINSON, TX 77539 A TIN: BROOKS SMITH H & W PETROLEUM CO., INC. . 9617 WALLlSVILLE RD. HOUSTON; TX 77013 ATIN: MIKE TOOMBS JAM DISTRIBUTING P.O. BOX 590026 HOUSTON, TX 77259-0026 JONES OIL 4828 N. SHEPHERD DRIVE HOUSTON, TX 77018 KING FUELS, INC 14825 WILLIS RD HOUSTON, TX 77039 O'ROURKE DISTRIBUTING 223 McCARTY DRIVE HOUSTON, TX 77029 . SUN COAST RESOURCES 6922 CAVALCADE HOUSTON, TX 77028 THOMAS PETROLEUM P.O. BOX 21740 BEAUMONT, TX 77720 CHAMBER OF COMMERCE P.O. BOX 996 LA PORTE, TX 77572-0996 BAYSHORE SUN PUBLISH DATES: SEPTEMBER 22, 2002 SEPTEMBER 29, 2002 . e REtuEST FOR CITY COUNCIL AENDA ITEM Agenda Date Requested: ADDrooriation Requested By: Carol Buttler Source of Funds: Department: Account Number: Report: X Resolution: Ordinance: Amount Budgeted: Exhibits: Executive Summary (slides) Amount Requested: Exhibits: ChaDter 172 of Local Government Code Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION By Interlocal Agreement, the City of La Porte contracts with the Texas Municipal League Intergovernmental Employee Benefits Pool (TML-IEBP), the City's Third Party Administrator (TPA), only for administration of employee health claims and continuation of coverage services. TML-IEBP notified Human Resources that, due to recent legislation including self-funded entities, the City of La Porte should ask our City Attorney to contact TML legal counsel and discuss formal adoption of Chapter] 72 of the Texas Local Government Code. City staff, the City Manager, the City Attorney, and a representative from the City's health benefits consultant participated in a conference call with TML legal counsel concerning Chapter 172 provisions. Chapter 172 (Texas Political Subdivision Employees Uniform Group Benefits Program Act), enacted in 1989 by the 7] 5\ Legislature, governs establishment and administration of health benefits for political subdivision employees. Because the City of La Porte partially self-funds health benefits coverage for its employees, adoption of Chapter 172 would formally establish the City of La Porte as a risk pool (self-funded entity). Otherwise, the City would be: I) considered to operate as an insurance company under the Texas Department of Insurance Code, 2) required to obtain an insurance license, and 3) required to follow all related regulations. Highlights (Executive Summary and Chapter 172 attached): . Exempted from compliance with current' Texas Department of Insurance (TDI) regulations. . . According to TML-in-house legal counsel, designation as a Chapter ] 72 entity can be a legal defense issue when an entity's health plan is challenged. . Appointed Trustees would require 16 hours of annual training provided at no cost by TML-IEBP Director and legal counsel (within 180 days of effective date or trustee selection date). . Required to submit a formal CPA audit to the TDI. . Excessive loss coverage must be provided or employees must be notified formally that this coverage is not provided. Staff Recommendation Receive presentation from TML-IEBP representatives, review workshop material, and provide direction to staff. Action Required bv Council: Provide direction to staff how to proceed with an ordinance adopting Chapter In to be effective January 1,2003. enda D.t!M/~ - - Trustee Training Chapter 1 72 of the Lo overnment Code City of La Porte rements for apter A 72 . I High ights ( Risk Pool under - . Enacted in 1989 in respon of Educators Group Health Tru Municipalities previously had no funding statutory.authority. Under the Texas Insurance Code, contracting to reimburse employees for medical expense would otherwise be "insurance" - rements for A72 apter . I High igh Risk POOl under IS 0 . Political Subdivision may se1f~ - Coverages . Accident . Health . Dental . Long-term disability - Persons/employees (at least 20 hours a week)/ dependents/retirees - 2001 amendment May also include employees of "affiliated contractors" and dependents - rements for apter 172 . I High igh Risk POOl under IS 0 . Pool may be for single entity 0 multiple units through Interlocal - Coverage may not be represented as unless purchased under contract from a . Insurer e Contributions to the Pool must be maintained in a separate fund rements for "72 apter . I High igh Risk POOl under - Must make thorough investigatio experience, and financial qualification Third Party Administrator or other entity employed to administer benefits . Must be operated by a Board of Trustees, a: highly recommended that a proper trust docum be adopted . - Attorney may not represent both Pool and Administrator without disclosure to Trustees - High ights quirements for Risk Poa under aoter.172 ..trustees must fiave 1 b hour rtralnlng In specified areas dealing with es .shment and operation of the Pool, within ay of appointment. The areas are as fol - law governing the establishment and operation pools by political subdivisions; - principles of self-insurance. and risk pools, includill actuarial and underwriting principles and investmen' principles; - principles relating to reading and understanding financial statements; and the general fiduciary duties of Trustees - for 72 remenIS apter 04 . I High ights ( Risk Pool under Must either carry excess los reinsurance, or .notify each covered pel that there is no coverage, or that it has be cancelled or non-renewed. . . Must invest according to the Public Funds Investment Act or the Texas Trust Code financial audit by CP A and fil Department of Insurance (TDI) Must have annual audit with Texas . rements for A72 apter . I High ights ( Risk Pool under - . Trustees must declare inso operation if Pool is unable to pay within 60 days of verification . Pool coverage is not insurance an not subject to TDI regulation (entities operating outside of Chapter 1 72 may not enjoy this exemption) rements for apter 172 . I High ights 0 Risk Poa under - , s right . Pool is subrogated to the emplo of recovery for personal injury ca. tortious conduct of third parties; inju must first be made whole under Texas Association of School Boards v . Ward -- Statutes on · k Poo s ..4 mpact of Chapter e Not subj ect to the provisions 0 Employee Retirement Income Sec ("ERISA") regarding welfare benefi Statutes on · k Poo s 72 ,. mpa Chapter Ct of e May be subject to yarious provisions Insurance. Portability & Accountability ("HIP AA") if there has been no "opt-out" e including limitations on pre-existing conditio exclusion periods, special enroll~ent periods :D individuals (and dependents) losing other covera prohibitions against discriminating against indivi participants and beneficiaries based on health status standards relating to benefits for mothers and newborns, parity in the application of certain lin mental health benefits and treatment of the non- affected breast following a mastectomy. e Health . Statutes on "kP OOIS -4. mpaCt Chapter e . Regardless of "opt-out," are su HIP AA provisions regarding (a) i certificates of creditable coverage an privacy and confidentiality. Statutes on · k Poo s .-.. mpact of Chapter e as ( a) (b) . Subject to other federal laws s continuation of coverage ("COB the Pregnancy Discrimination Act, Discrimination in Employment Act ("ADEA") and the Older Workers Be Protection Act ("OWBP A"), and (d) requirements and pronouncements of the Equal Employment Opportunity Commission ("EEOC"). Statutes on · k Poo s ,. mpa Chapter - Open Meetin e Subject to Texas Records laws e Subject to any provisions of the Tex Insurance Code which apply to Chapte pools or otherwise indicate that the statu includes the factual situation of the Pool. nsurance Code tical ons* which are arguably applicable f ~f-funded or pooled poli subdivisions (end references a to article numbers) e . Applicable "Notwithstanding" Local Government Code exempti - Colorectal cancer (1-1-02) 21.538 - Childhood immunizations (1-1-98) screening test (1-1-00) 21.53F - Diabetes Care (1-1-99) 21.53D - Access to Certain Obstetrical/Gynecological Care (1-1-98) 21.53D - Prostate cancer (1-1-98) 21.53F nsurance Code itica It ons* which are arguably applicable to ' If-funded or pooled pol subdivisions (end references a 0 article numbers) "Self-Funded" 0 . Applicable to Insured" (01/01/88) 3.51- - In-Vitro fertilization 3A - Chemical Depend~ncy 01/01/90) 3.51-9 - AIDS (1-1-90) and Serious Mental Illness (01/01/92) 3.51-5A - Dependent Grandchildren (1-1-94, amended 01/01/02) 3.70-2 . e nsurance Code sions* f-funded or pooled politlca ,0 article numbers) not licensed e law of ih which are arguably applicable subdivisions (end references a e Applicable to "any other en under this code or another insu' this state that contracts directly fo care services on a risk-sharing ba, . Certain Bone and Joint Procedures (01/01 21.53A Minimum Inpatient Stay in Health Care Faci and Post delivery Care Following Birth of ChI' (01/01/98) 21.53F . e nsurance Code isions* which are arguably applicable to If-funded or pooled politica subdivisions (end references a o article numbers) · Craniofacial Abnormalities (01/ 0) 21.53W · Health Benefit Plans for Children (1 Chapter 27 . Genetic Testing (01/01/98) 21.73 · Certification of coverage (07/01/97) 21.52 . Group Coverage of Certain Students (01/01/ amended 01/01/02) 21.24-2 . e CHAPTER 172. TEXAS POLITICAL SUBDIVISIONS UNIFORM GROUP BENEFITS PROGRAM ~ 172.001. Short Title This chapter may be cited as the Texas Political Subdivision Employees Uniform Group Benefits Act. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. ~ 172.002. Purpose The purpose of this chapter is to: (l) provide uniformity in benefits including accident, health, dental, and long-term disability coverage to employees of political subdivisions; (2) enable the political subdivisions to attract and retain competent and able employees by providing them with accident and health benefits coverages at least equal to those commonly provided in private industry; (3) foster, promote, and encourage employment by and service to political subdivisions as a career profession for persons of high standards of competence and ability; (4) recognize and protect the political subdivisions' investment in each permanent employee by promoting and preserving economic security and good health among those employees; (5) foster and develop high standards of empt'oyer-employee relationships between each political subdivision and its employees; (6) recognize the service to political subdivisions by elected officials by extending to them the same accident and health benefits coverages as are provided for political subdivision employees; and (7) recognize the long and faithful service and dedication of employees of political subdivisions and to encourage them to remain in service of their respective political subdivisions until eligible for retirement by providing health benefits to those employees. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. ~ 172.003. Definitions In this chapter: (1) "Employee" means a person who works at least 20 hours a week for a political subdivision. (2) "Political subdivision" means a county, municipality, special district, school district, junior college district, housing authority, or other political subdivision of the state. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. ~ 172.004. Benefits Contract (a) A political subdivision or a group of political subdivisions pursuant to The lnterlocal Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes) directly or through a risk pool may provide health and accident coverage for political subdivision officials, employees, and retirees or any class of officials, employees, or retirees. (b) The types of coverage that may be provided include group health and accident, group dental, accidental death and dismemberment, and hospital, surgical, and medical expense. ( c) A political subdivision also may include under the coverage dependents of the officers, employees, and retirees. (d) A pool's board of trustees may.provide coverage for the trustees and the pool's staff, including persons with whom the pool has contracted to perform staff functions, on approval of the members of the pool. Added by Acts 1989, 71st Leg., ch. 1067, ~ I, eff. Sept. 1, 1989. ~ 172.005. Risk Pool e e (a) A political subdivision may establish a risk pool or may enter into an interlocal agreement under The Interlocal Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes) with other political subdivisions to establish a risk pool to provide health and accident coverage for officials, employees, retirees, and their dependents. (b) Contributions paid by a political subdivision's officials, employees, and retirees for coverage shall be deposited to the credit of the risk pool's fund and used as provided by rules of the risk pool. (c) A pool by contract may purchase insurance coverage for persons who are covered by the pool from an insurance company authorized to do business in this state. (d) A pool or its agents may not represent to persons who apply for coverage or who are covered by the pool that the coverage being provided is insurance unless the coverage is by contract purchased from an insurance company authorized to do business in this state. (e) A risk pool organized under this section is a legal entity that may contract with an insurer licensed to do business in Texas to assume any excess of loss of a benefit contract authorized under Section 172.004. Notwithstanding any provision of the Insurance Code or any other law governing insurance in this state, an insurer authorized to do business in Texas may assume the excess ofloss of the benefit contract under Section 172.004. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 611, ~ 1, eff. Aug. 26, 1991. ~ 172.006. Supervision and Administration of Pool (a) A political subdivision or a group of political subdivisions that create a risk pool shall select trustees to supervise the operation of the pool. (b) A pool may be administ~red by a staff employed by the pool, an entity created by the political subdivision or group of political subdivisions participating in the pool, a staff or entity that administers another pool established under this chapter, or a third party administrator. (c) Before entering into a contract with a person to be a third party administrator of the pool, the trustees shall require that person to submit information necessary for the trustees to evaluate the background, experience, and financial qualifications and solvency of that person. The information submitted by a prospective administrator other than an insurance company must disclose: (1) any ownership interest that the prospective administrator has in an insurance company, group hospital service corporation, health maintenance organization, or other provider of health care indemnity; and (2) any commission or other benefit that the prospective administrator will receive for purchasing services or coverage for the pool. (d) An attorney employed by a third party administrator, provider of excess loss coverage, or reinsurer may not be simultaneously employed by the pool unless, before the attorney is employed by the pool, the third party administrator, provider of excess loss coverage, reinsurer, or attorney discloses to the pool's board of trustees that the attorney is employed by the administrator, provider, or reinsurer. ( e) If the state enacts a law providing for the licensing or registration of third party administrators, a risk pool in contracting for administrative services may only contract for services of a third party administrator licensed or registered under that law. This subsection does not apply to a nonprofit corporation that is acting solely on behalf of the risk pool or other pools or administrative agencies established under The Interlocal Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes). . e Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 988, ~ 1, eff. Sept. 1, 1999. ~ 172.007. Trustee Training (a) Trustees who act as fiduciaries for a risk pool must have at least 16 hours of combined professional instruction with four hours of instruction in each of the following areas: (I) law governing the establishment and operation of risk pools by political subdivisions; (2) principles of self-insurance and risk pools, including actuarial and underwriting principles and investment principles; (3) principles relating to reading and understanding financial statements; and (4) the general fiduciary duties of trustees. (b) Not later than the 180th day after the date of selection as trustee, or after the effective date of this chapter, whichever is the later date, a trustee must complete the training required by Subsection (a). . Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. ~ 172.008. Excess Loss Coverage and Reinsurance (a) A risk pool may purchase excess loss coverage or reinsurance to insure a pool against financial losses that the pool determines might place the solvency of the pool in financial jeopardy. (b) If a risk pool does not purchase excess loss coverage or reinsurance, the administrator shall give written notice to each person who applies for coverage from the pool that the pool does not maintain excess loss coverage or reinsurance. The administrator shall provide the notice before coverage is issued to an applicant and shall give the applicant the opportunity to decline the coverage. ( c) If a risk pool cancels or does not renew excess loss coverage or reinsurance, the administrator shall give notice to each person covered by the pool that the coverage has been canceled or has not been renewed and shall give each an opportunity to cancel his coverage. The administrator must give the notice and opportunity to cancel coverage not later than the 30th day aft~r the date on which the pool cancels or does not renew the excess loss coverage or reinsurance. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. I, 1989. ~ 172.009. Investments (a) The trustees of a risk pool shall invest the pool's money in accordance with Subchapter A, Chapter 2256, Government Code to the extent that law can be made applicable. (b) In addition to investments authorized under Subchapter A, Chapter 2256, Government Code, the trustees of a pool may invest the pool's money in any investment authorized by the Texas Trust Code (Subtitle B, Title 9, Property Code). Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 76, .~ 5.95(11), eff. Sept. 1, 1995. ~ 172.010. Audits (a) The trustees of the pool shall have the fiscal accounts and records of the risk pool audited annually by an independent auditor. (b) The person who performs the audit must be a certified public accountant or public accountant licensed by the Texas State Board of Public Accountancy. (c) The independent audit shall cover a pool's fiscal year. (d) The trustees of the pool shall file annually with the S~ate Board of Insurance a copy of the audit report. The State Board of Insurance shall maintain the copies of the audit reports at a convenient location and shall make the copies of the audit reports available for public inspection . e during regular business hours. A person may request the State Board of Insurance to provide copies of any item included in an audit report on payment of the cost of providing the copies. The State Board of Insurance may adopt rules governing the time and manner for filing audit reports under this subsection and the procedures for filing, inspecting, and obtaining. copies of audit reports. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. I, 1989. Amended by Acts 1991, 72nd Leg., ch. 599, ~ 15, eff. Sept. 1, 1991. ~ 172.011. Insolvency (a) The trustees of a risk pool shall declare the pool insolvent if the trustees determine that the pool is unable to pay valid claims within 60 days after the date the claims are verified. (b) If a pool is declared insolvent by the trustees, the pool shall cease operation on the day of the declaration, and the trustees shall provide for the disposition of the pool's assets, debts, obligations, losses, and othet: liabilities. (c) A person who has coverage under a risk pool may institute proceedings to have the pool declared insolvent by petitioning a district court in Travis County to declare the pool insolvent. If the district court, after notice and hearing, determines that the pool is insolvent, the court shall appoint a receiver to take charge of and dispose of the pool's assets, debts, obligations, losses, and other liabilities. Except as provided by this chapter, a receivership under this section is governed by Chapter 64, Civil Practice and Remedies Code, to the extent that chapter can be made applicable. (d) After a receiver takes charge of the assets and determin,es outstanding debts, obligations, losses, and other liabilities, the receiver shall give notice of his determination to any person, including a political subdivision that is a participant in the pool. (e) If the receiver determines that money is owed to the pool by a political subdivision that is a participant in the pool, the political subdivision may protest the determination by filing with the court a protest statement not later than the 15th day after the date the notice of the receiver's determination is mailed. (f) If a court in which a protest statement is filed determines after a hearing that an amount is owed by the political subdivision filing the protest statement, the political subdivision shall pay that amount to the receiver not later than the 30th day after the date on which the court's determination becomes final. A determination by a court on a protest statement is interlocutory. (g) If a protest statement is not filed with the court, the political subdivision shall pay to the receiver the amount determined to be owed not later than the 30th day after the date on which the receiver mails the notice under Subsection (d). (h) The court that appoints a receiver may direct that a reasonable fee be paid to the receiver as compensation for performance of responsibilities and duties and may assess each political subdivision that is a participant in the pool under the receiver's control an amount necessary to compensate the receiver. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. I, 1989. ~ 172.012. Limitation of Risk Pools (a) Except as provided by Subsection (b), a county may not provide health and accident coverage through a risk pool under this chapter, except: (1) as authorized by Subchapter A, Chapter 157; or (2) through an interlocal contract entered under The Interlocal Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes) with other political subdivisions of this state if the . e aggregate annual contributions to the pool will exceed $1 million based on an actuarial estimate by an actuary who is a member of the American Academy of Actuaries. (b) A county with a population of fewer than 500,000 may create and provide coverage through a pool if the aggregate annual claims, contributions, or both claims and contributions to the pool will exceed $300,000 based on an actuarial estimate by an actuary who is a member of the American Academy of Actuaries. Added by Acts 1989, 71st Leg., ch. 1067, ~ I, eff. Sept. I, 1989. Amended by Acts 1991, 72nd Leg., ch. 649, ~ 1, eff. Aug. 26, 1991. ~ 172.013. Payment of Contributions and Premiums (a) A political subdivision may p~y all or part of the contributions for coverage under this chapter from local funds, including federal grant or contract pass-through funds, that are not dedicated by law to some other purpose. (b) A political subdivision also may pay all or part of the contributions for coverage for officers, employees, retirees, and dependents. (c) On written approval of an officer or employee, a political subdivision may deduct from the officer's or employee's compensation an amount necessary to pay that person's and his dependents' contributions. A retiree may authorize in writing the person who pays his retirement benefits to deduct from those benefits an amount sufficient to pay the retiree's and his dependents' contributions. (d) State funds, except federal grant or contract funds passed through the state to its political subdivisions, may not be used to purchase coverage or to pay contributions under this chapter. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. ~ 172.014. Application of Certain Laws A risk pool created under this chapter is not insurance or an insurer under the Insurance Code and other laws of this state, and the State Board of Insurance does not have jurisdiction over a pool created under this chapter. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. ~ 172.015. Subrogation The payor of employee benefits, whether a political subdivision, group of political subdivisions, pool, or carrier providing reinsurance to one of those entities, shall be subrogated to the employees' right of recovery for personal injuries caused by the tortious conduct of a third party. Added by Acts 1989, 71st Leg., ch. 1067, ~ 1, eff. Sept. 1, 1989. e e e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Aoprooriation Requested By: Source of Funds: Medical Fund Department: Account Number: 014-6144-515-6011 Report: Resolution: Ordinance: X Amount Budgeted: 3,500,000.00 Exhibits: Ordinance Amount Requested: 1,li;RRfUlO 00 Budgeted Item:0s J NO Exhibits: Sl"hpdnlp of Propo!llpd Rpnpfit!ll C.hangP!ll SUMMARY & RECOMMENDATION At the July 15, 2002, City Council meeting, staff presented a status report on the Employee Health Services Fund. Due to rising costs of health care services, Council was notified of the need to implement several changes to the medical fund. As part of the FY2002-2003 budget, Council approved an increase of the City's contribution to the medical fund by approximately 29% (from $3,500.00 to $4,500.00) per employee. Although the City would continue 100% of contributions for employee only coverage, employees were required to double their contributions toward dependent coverage effective October 1, 2002. Contributions by retirees remain unchanged at this time. The City must implement even more changes during the current budget year. Staff, the City's Third Party Administrator (TML-IEBP), and benefits consultant (The Welch Company) propose changes to the Medical Plan Design (Exhibit A) to become effective January 1, 2003. How the medical plan is designed determines the percentages of benefits employees would receive for health care and out-of-pocket dollars employees should expect to pay. Based on annualized claims for 2002, ($2,700,000.00) the City anticipates savings from the medical plan redesign of approximately $309,000.00 for the 2003 benefit year, in addition to the estimated $300,000.00 increased contribution by the City. Staff Recommendation Adopt an ordinance authorizing redesign of the medical plan (Exhibit A). Action Required bv Council: Adopt an ordinance authorizing redesign of the medical plan (Exhibit A). /y.rp~ Date e e ORDINANCE NO. 2002- ;}S'1+ AN ORDINANCE AUTHORIZING AND APPROVING A CONTRACT AMENDING THE MEDICAL PLAN DESIGN, PROVIDED BY THE CITY OF LA PORTE AND ADMINISTERED BY THE TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL EMPLOYEE BENEFITS POOL (TML-IEBP), TO BE EFFECTIVE JANUARY 1,2003; AUTHORIZING THE CITY MANAGER TO SIGN SAID CONTRACT; MAKING VARIOUS FINDlNGS AND PROVISIONS RELATlNG TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCa OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council authorizes the amended medical plan design as described in Exhibit A for employee health claims, to be funded from City of La Porte Employee Health Services Fund Account No. 014-6144-515-6011. 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. e e ORDINANCE NO. 2002-. PAGE 2 Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 28th day of October 2002. CITY OF LA PORTE BY:~~~ " Norman L. Malone Mayor ATTEST: ~t!.a cf;lIj M a A. Gillett City Secretary . e "Exhibit A" HEALTH SERVICES PLAN DESIGN CURRENT PROPOSED FOR 2003 MAxIMUM LIFETIME BENEFIT $1,000,000.00 $1,000,000.00 CO-PAY All doctors $15.00 $25.00 DEDUCTIBLE Individual: In Network $200.00 $300.00 Non-Network $400.00 $600.00 Family (3 or more): In Network $600.00 $900.00 Non-Network $1,200.00 $1,800.00 COINSURANCE In Network 90% /10% 80% / 20% Non-Network 70% / 30% 50% / 50% OUT-OF-POCKET MAxIMUM (employee portion) Individual: In Network $1,000.00 $1,500.00 Non-Network No maximum No maximum Family: In Network Non-Network $2,500.00 No maximum $3,000.00 No maximum PRESCRIPTIONS (Rx) Deductible $50.00 $50.00 Retail (employee portion): Generic Preferred (Formulary) Non-Formulary + Others 10.00 20.00 or 20%* 30.00 or 20%* 10.00 25.00 or 20%* 40.00 or 20%* Mail (employee portion): Generic Preferred (Formulary) Non-Formulary + Others 20.00 40.00 or 20%* 60.00 or 20%* 20.00 50.00 or 20%* 80.00 or 20%* · Whichever is the greater amount