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HomeMy WebLinkAbout2005-10-24 Regular Meeting, Public Hearing and Workshop Meeting of City Councilm MINUTES OF REGULAR MEETING, PUBLIC HEARING AND WORKSHOP MEETING OF THE LA PORTE CITY COUNCIL October 24, 2005 1. CALL TO ORDER The meeting was called to order by Mayor Alton Porter at 6:01 p.m. Members of City Council Present: Mayor Alton Porter, Council members Tommy Moser, Mike Clausen, Mike Mosteit, Louis Rigby, Barry Beasley, Howard Ebow and Peter Griffiths . Members of Council Absent: Chuck Engelken Members of City Executive Staff and City Employees Present: City Manager Debra Feazelle, Assistant City Manager John Joerns, Assistant City Attorney Clark Askins, Planning Director Wayne Sabo, Purchasing Manager Susan Kelley, EMS Chief Ray Nolen, City Secretary Martha Gillett, Assistant Police Chief Aaron Corrales, Assistant City Secretary Sharon Harris, Emergency Management Coordinator Jeff Suggs, Assistant Fire Chief John Dunham, Police Officer's Association Matt Novasad, Sergeant Matt Daeumer, Judge Denise Mitrano, Deputy Court Clerk Lisa Syzdeck, City Marshal Skip Young, Deputy Court Clerk Jackie Carmona, Deputy Court Clerk Debbie Gardner, Chief Deputy Court Clerk Patty Gutierrez, Police Chief Richard Reff, Purchasing Manager Susan Kelley, Court Clerk Aimee Bird, Lieutenant Carl Crisp, Assistant Finance Director Michael Dolby and Parks and Recreation Director Stephen Barr. Others Present: Spero Pomonis, Mr. Sidney Grant, Mrs. Sidney Grant, Tucker Grant, Carol Mosteit, Sue Gail Kooken, Barbara Norwine, Dottie Kaminski, Colleen Hicks, Bill Manning, Nick Barrera, Reverend David Morgan, Heather Stostek, Christina Week, Tina Perez, Martin Cantu, Casey Morris, Carol Christian Houston Chronicle and other citizens. 2. Reverend David Morgan of First Baptist Church of La Porte delivered the Invocation. 3. Mayor Porter led the Pledge of Allegiance. PRESENTATIONS / PROCLAMATIONS A. Mayor Porter presented a Vince Patel Proclamation to owner of Fairway Inn Hotel in recognition of his generosity during Hurricane Rita. This item was moved to the November 14, 2005 City Council Meeting due to the citizens not being present at the meeting. B. Mayor Porter presented a Milad Elias Day Proclamation to owner of Texans Sports Bar & Grill in recognition of his generosity during Hurricane Rita. This item was moved to the November 14, 2005 City Council Meeting due to the citizens not being present at the meeting. C. Mayor Porter presented Municipal Courts Week Proclamation to Judge Denise Mitrano, Court Clerk Aimee Bird, and Chief Deputy Court Clerk Patty. Gutierrez, City Marshal Skip Young, Deputy Clerk Jackie Carmona, Deputy Court Clerk Lisa Syzdeck and Deputy Court Clerk Debra Gardner. 5. Consent Agenda A. Consider approving Minutes of the Regular Meeting and Workshop Meeting of City Council held on October 10, 2005. B. Council to consider awarding bid of HGAC to Texas Bus Sales, Inc. to provide a Type III HD — Aero Elite 290 Transit Bus for the Senior Services Division. C. Council to consider approving purchase for Whelen Tower Replacement. City Council Regular Meeting, Public Hearing and Workshop Meeting — October 24, 2005 Page 2 D. Council to approve ordinance authorizing Settlement Agreement between City of La Porte and Eagle Construction. Council had questions on items B and C. Motion was made by Council member Clausen to approve the consent agenda as presented. Second by Council member Moser. Motion carried. Ayes: Mosteit, Moser, Rigby, Clausen, Beasley, Ebow and Mayor Porter. Nays: None Abstain: Griffiths 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA. There were no citizens wishing to address Council. Council took item 14 out of order at this time. See below 14. Chamber of Commerce Colleen Hicks provided a report to City Council regarding Proposed Budget Expenditures. See attached. 7. Public Hearing — Council to consider taking action on three recommendations for approval by P&Z to 1) create large lot district 2) adopt boundaries of the large lot district, and 3) rezone from low -density residential and medium density residential to large lot district. Open Public Hearing - Mayor Porter opened the Public Hearing at 6:18 p.m. Review by Staff— Planning Director Wayne Sabo provided an overview on recommendation by Planning & Zoning. Public Input: Carol Mosteit — 11117 Sunset Ridge — Spoke in favor of item 7/8. Sidney A. Grant 1907 Lomax Dr. — Spoke against item 7/8. Sidney T. Grant — 1917 Lomax Dr. — Spoke against item 7/8. Kathy Slovak — 2041 — Lomax School Rd. — Did not speak but wanted minutes noted she was in favor of item 7/8. Rhysa Finch -2212 Lomax School Rd. — Did not speak but wanted minutes noted she was in favor of item 7/8. T.J. Walker — 11438 N. Ave. P. — Did not speak but wanted minutes noted she was in favor of item 7/8. Randa Childers — 10614 N. Ave. L. — Spoke in favor of item 7/8. Bill Manning — Lomax area resident — Spoke in favor of item 7/8. Patricia Wright — 2038 Lomax School Rd. — Did not speak but wanted minutes she was in favor of item 7/8. Cecile Paschal — 10114 N. Ave. L. — Did not speak but wanted minutes noted she was in favor of item 8. City Council Regular Meeting, Public Hearing and Workshop Meeting — October 24, 2005 Page 3 Recommendation of Planning and Zoning Commission: The Planning and Zoning Commission recommended 1) Create Large Lot District 2) Adopt boundaries for the Large Lot District, and 3) Rezone from low -density residential and medium density residential to large lot district. The Public Hearing was closed at 7:18 p.m. 8. Council to consider approval or other action regarding Ordinance 1501-T4. Assistant City Attorney Clark Askins read: ORDINANCE 1501-T4 AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, CHAPTER 106, MORE COMMONLY REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTE, BY AMENDING ARTICLE 1, SECTION 106-1, DEFINITIONS, BY AMENDING SECTION 106-309, DIVISION I, LAND USE DISTRICTS; BY AMENDING CHAPTER 106, ARTICLE III, DISTRICTS, DIVISION 2, SECTION 106-331, TABLE A, RESIDENTIAL USES; BY ADDING A NEW SECTION 106-416, SPECIAL REGULATIONS, AND BY AMENDING CHAPTER 106, ARTICLE V, DIVISION 2, SECTION 106-741; BY CHANGING THE ZONING CLASSIFICATION FROM LOW DENSITY RESIDENTIAL AND MEDIUM DENSITY RESIDENTIAL TO LARGE LOT, INCLUDING AREA GENERALLY BEING DESCRIBED AS BOUNDED TO THE WEST BY UNDERWOOD ROAD, NORTH BY SH 225, EAST BY SENS ROAD, AND SOUTH BY SPENCER HIGHWAY; MAKING CERTAIN FINDINGS OF FACT RELATED TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF;. Motion was made by Council member Beasley to approve Ordinance 1501-T4 as recommended by staff and to approve proposed amendment to ordinance by adding Section 106-191 (b)(4) to Chapter 106 of City Code to allow consideration of special exception to Large Lot District regulations by Zoning Board of Adjustment. Second by Council member Griffiths. The motion carried. Ayes: Mosteit, Rigby, Moser, Clausen, Beasley, Ebow, Griffiths and Mayor Porter Nays: None Abstain: None 9. Public Hearing — Council to consider taking action on an ordinance for 11.48 acres of land being part of 24.88 acres of land located at 502 North Broadway to be rezoned from R-2 and BI to PUD . Open Public Hearing - Mayor Porter opened the Public Hearing at 7:25 p.m. Review by Staff — Director of Planning Wayne Sabo provided an overview on ordinance approving 11.48 acres of land being part of 24.88 acres of land located at 502 North Broadway to be rezoned from R-2 and BI to PUD Public Input — None Recommendation of Planning & Zoning — by a unanimous vote (6-0), recommends City Council approval or Rezone Request R05-005. The Public Hearing was closed at 7:28 p.m. 10. Council to consider approval or other action regarding Ordinance 1501-U4 & #R05-005. Assistant City Attorney Clark Askins read: AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, CHAPTER 106, MORE COMMONLY REFERRED TO AS THE ZONING ORDINANCE OF THE CITY OF LA PORTE, BY CHANGING THE ZONING CLASSIFICATION FROM MEDIUM DENSITY RESIDENTIAL AND BUSINESS INDUSTRIAL TO PLANNED UNIT DEVELOPMENT REQUESTED BY P & O COLD LOGISTICS LOCATED AT 502 NORTH BROADWAY, ONE BLOCK SOUTH OF BARBOUR'S CUT BLVD., HEREIN DESCRIBED; MAKING FINDINGS OF City Council Regular Meeting, Public Hearing and Workshop Meeting — October 24, 2005 Page 4 FACT RELATED TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATER HEREOF;. Motion was made by Council member Moser to approve Ordinance 1501-U4& #R05-005. Second by Council member Griffiths. The motion carried. Ayes: Mosteit, Rigby, Moser, Clausen, Beasley, Ebow, Griffiths and Mayor Porter Nays: None Abstain: None 11. Council to consider approval or other action regarding a resolution declaring intention to reimburse certain expenditures with borrowing proceeds for automated meter reading. Assistant Finance Director Michael Dolby presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: RESOLUTION 2005-21 — A RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN EXPENDITURES WITH BORROWING PROCEEDS FOR AUTOMATED METER READING. Motion was made by Council member Clausen to approve the Resolution 2005-21 as presented by Mr. Dolby. Second by Council member Griffiths. The motion carried Ayes: Mosteit, Moser, Beasley, Ebow, Clausen, Griffiths and Mayor Porter. Nays: None Abstain: None Council member Rigby was not present at the table for this vote. 12. Council to consider approval or other action regarding a resolution to amend Investment Policy. Assistant Finance Director Michael Dolby presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: RESOLUTION 2005-22 — A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, AMENDING AN INVESTEMENT POLICY CONFIRMING TO ALL STATUTES GOVERNING INVESTMENT OF THE CITY OF LA PORTE'S FUNDS, INCLUDING, BUT NOT BY WAY OF LIMITATION, THE PUBLIC FUNDS INVESTMENT ACT, CHAPTER 2256, TEXAS GOVERNMENT CODE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND SETTING AN EFFECTIVE DATE THEREOF. Motion was made by Council member Ebow to approve the Resolution 2005-22 as presented by Michael Dolby. Second by Council member Griffiths. The motion carried Ayes: Mosteit, Rigby, Moser, Beasley, Ebow, Clausen, Griffiths and Mayor Porter. Nays: None Abstain: None It was noted the changes are on page 11. 13. Council to consider approval or other action to instruct the Assistant City Manager to amend the various operating budgets for outstanding purchase orders, encumbrances and budget rollover requests.. Assistant Finance Director Michael Dolby provided City Council with a summary and recommendation. City Council Regular Meeting, Public Hearing and Workshop Meeting — October 24, 2005 Page 5 Motion was made by Councilmember Griffiths to approve the amendment to various operating budgets_ for outstanding purchase orders as presented. Second by Councilmember Moser. The motion carried unanimously. Ayes: Porter, Griffiths, Beasley, Ebow, Mosteit, Moser, Rigby and Clausen. Nays: None Abstain: None 15. Close Regular Meeting and Open Workshop at 7:35 p.m. A. Assistant Police Chief Aaron Corrales provided an overview of the motor assisted scooter ordinance and Council provided staff with direction to bring back an ordinance at a future Council meeting addressing motor assisted scooters in the City of La Porte. The ordinance needs to be stringent not allowing the scooters on City sidewalks/paths and needs to have a driver age requirement of at least 16 years old. Council advised staff when ordinance is adopted they want extensive media coverage to ensure the public is made aware of new ordinance. B. Richard Reff discussed speed limit signs. Mayor Porter noted Chuck Engelken requested Mayor note for the record he was in favor of changing speed limits in selected areas of the City. There are concerns with some subdivisions in District 2. Council directed staff to come back with options considering costs of each option. C. Richard Reff provided a report on DOT scales weight limitation and tickets activity. 16. Closed Workshop meeting and reconvened Regular Meeting at 8:31 p.m. 17. Administrative Reports City Manager Debra Feazelle reminded council of the Texas Municipal League Conference, October 26 — 29, 2005, in Grapevine Texas, Fire Station 2 Masonic Cornerstone Ceremony, November 12, 2005, Appreciation Dinner, November 14, 2005, at Evelyn Kennedy Center, at 4:00 p.m., Thanksgiving Holiday Observed, November 24 — 25, 2005 and discussed the November & December City Council Meetings. 18. Council Comments Ebow, Mosteit, Clausen, Rigby, Moser, Beasley, Griffiths and Mayor Porter had comments. 19. EXECUTIVE SESSION — PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, 551-087, TEXAS GOVERNMENT CODE (CONSULTATION WITH ATTORNEY, DELIBERATION REGARDING REAL PROPERTY, DELIBERATION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, DELIBERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION, DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS) 551.074 — (PERSONNEL MATTERS) — JUDGE MITRANO'S EVALUATION 551.071 — (PENDING OR CONTEMPLATED LITIGATION) — DISCUSS EAGLE CONSTRUCTION LAWSUIT WITH CITY ATTORNEY AND CITY MANAGER. 551.072 (LAND ACQUISITION) — MEET WITH CITY ATTORNEY AND CITY MANAGER FOR THE PURPOSE OF DELIBERATING THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY. Council retired to Executive Session at 8:40 p.m. City Council Regular Meeting, Public Hearing and Workshop Meeting — October 24, 2005 Page 6 There was no action taken during Executive Session. 22. Council returned to the table at 9:14 p.m. and there was not action taken. 23. There being no further business to come before Council, the Regular Meeting was duly adjourned at 9:15p.m. Respectfully submitted, Martha Gillett, TRMC, CMC City Secretary Passed and approved on this 14'h day of November 2005 Mayor Alton E.Porter P.O. BOX 996 / LA PORTE, TEXAS / 77572-0996 / PHONE (281) 471-1123 / FAX (281) 471-1710 M La Porte-Bayshore r ._� Chamber aF Commerce October 18, 2005 The Honorable Mayor Alton Porter and Council Members City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 Dear Mayor and Council: On behalf of the board of directors of the La Porte-Bayshore Chamber of Commerce, please accept our sincere thanks for approval of the 2005-2006 contract between the City of La Porte and the Chamber regarding Hotel Tax Funds. Attached are proposed budgets for both the annual $40,000 allocation and the special project allocation of $30,000 to be used to enhance the 50tn Annual Sylvan Beach Festival. We are very pleased to have the opportunity to continue to work with both the elected officials and the staff to promote the City of La Porte and its attractions. Sincerely, 4� - Colleen Hicks, IOM President Attachments La Porte-Bayshore Chamber of Commerce Proposed Budget - Hotel Occupancy Tax Fund For October 1, 2005 thru September 30, 2006 Hotel Tax Revenue 40,000.00 Expenses Advertising/Promotion 14,000.00 Sylvan Beach Festival & Main Street Activities — Newspapers, magazines, radio, billboards Administrative Fee 18,000.00 Approx 9% of Gen Op budget -minimum of 10% of staff time devoted to tourism (phones, walk-ins, mailing info, etc.) Continuing Education 300.00 Texas Economic Development -Tourism Division workshop Entertainment 3,500.00 To secure higher profile Sylvan Beach entertainer to attract tourists to La Porte Junior Golf Expenses 900.00 To assist with Bay Forest Junior Golf Tournament Printing/Publications 2,400.00 Doorway to Hospitality Brochures & Sylvan Beach Festival Brochures Contingency 900.00 Contingency funds Total Expenses 40,000.00 Revenue Over/Under Expenses 0.00 E REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 14 2005 Requested By: Wayne J. Sal) Department: Planning Report: Resolution: Ordinance: X Exhibits: A. Ordinance for Industrial District Agreement B. Industrial District Agreement C. Ordinance for Water Service Agreement D. Water Service Agreement E. Area Map Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: _YES _2L_NO SUMMARY & RECOMMENDATION Council has approved a policy to provide utility services to companies located outside city limits and within the City's industrial districts. These companies are required to maintain a current Industrial District Agreement with the City. Matheson Tri-Gas, Inc., located in the Bayport Industrial District, has been notified by the City of its need to execute an Industrial District Agreement and an updated Water Service Agreement to continue City water service to its site. Currently, Matheson receives water service under a previous agreement executed several years ago between the City and "Airco", a company that formerly occupied the site. Execution of an IDA and WSA will bring the company into compliance with current City policy. Matheson desires to execute the necessary agreements for water service under the terms of the current policy. Based on the company's needs for domestic and industrial process water, an average daily demand has been established at 350 gallons per day and is within the City's guidelines. The company will pay one and one-half (1-%) times the City's current utility rate. Coinciding with the City's realignment, the terms of the Industrial District Agreement and Water Service Agreement expire on December 31, 2007, plus any renewals and extensions thereof. The agreements shall automatically expire if there are no renewals or if the city exercises the right of termination. Staff recommends approval of the Industrial District Agreement and Water Service Agreement as submitted herein. Action Required by Council: Consider approval of an ordinance authorizing the City to enter into an Industrial District Agreement and an ordinance authorizing the City to execute a Water Service Agreement with Matheson Tri-Gas, Inc. Approved for City Council Agenda Debra B. Feazell , i Man er Date EXHIBIT "A" Ordinance for Industrial District Agreement (File: 2000-IDA-71) ORDINANCE NO. 2005-2852 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH MATHESON TRI-GAS INC-1 FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 20071 MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECTy FINDING COMPLIANCE WITH THE OPEN MEETINGS LAWy AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. MATHESON TRI-GAS INC. has executed an industrial district agreement with the City of La Porte, for the term commencing January 1, 2001, and ending December 31, 2007, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. The Mayor, the City Manager, the City Secretary, and the City Attorney of the City of La Porte, be, and they are hereby, authorized and empowered to execute and deliver on behalf of the City of La Porte, the industrial district agreement with the corporation named in Section 1 hereof. Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ORDINANCE NO. 2005- aY,57� PASSED AND APPROVED, this I l4L ATTEST: �-flawko. ", — Martha A. Gillett City Secretary APPROVED: Knox W. Askins City Attorney PAGE 2 day of I )OV 'e-MA-et, 2005. CITY OF LA PORTE �v T By: L� ��— Alton E. Porter Mayor EXHIBIT "B" Industrial District Agreement (2 Copies) NO. 2000-IDA-71 § STATE OF TEXAS § COUNTY OF HARRIS § INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and MATHESON TRI-GAS, INC., a 1)eb-wo rio i corporation, hereinafter called "COMPANY", W I T N E S S E T H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land"); and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City Council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 24, 2000 I. City covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, City does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "C" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by City, at City's expense, by an independent appraiser of City's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. A. on or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide City with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III (sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, Company shall pay to City an amount "in lieu of taxes" on Company's Property as of January 1st of the current calendar year ("Value Year"). D. Company agrees to render to City and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (5316) of the amount of ad valorem taxes which would be payable to City if all of the Company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 Fa each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation) , for each Value Year following completion of construction in progress, an amount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (c) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 in accordance with the applicable provisions of the Texas Property Tax Code. with the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. Emm This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, unless extended for an additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2007, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, Section 42,044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the 5 foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree with any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company) , Company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu" payments which would be due hereunder on the basis of Company's valuations rendered and/or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the U.S. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" payment and total payment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including I expert opinion, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbitration Act (Chapter 171, "General Arbitration", Texas Civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on Company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon City and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If City enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and City agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. x. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. Without such agreement neither party hereto would enter into this Agreement. In the event any one or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 2001. M ON TRI-GAS, INC. name : 64 AI Al Title: V I G✓��;�n�., ...... , . . Address : ,�� �� 6 ATTEST: ITY OF LA PORTE ri, Ail By: _►. �� V� Cit ecr ary Mayor APPR,O-END : � R By: '1 Knox W . Askins'City City Manag M6rr7ey City of La Porte 7 P.O. Box 1218 CITY OF LA PORTE La Porte, TX 77572-1218 604 West Fairmont Parkway La Porte, TX 77571 Phone: (281) 471-1886 Fax: (281) 471-2047 8 "EXHIBIT A" (Metes and Bounds Description of Land) ASKINS & ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS JOHN D. ARMSTRONG CLARK T. ASKINS February 10, 2006 Mr. Gary T. n Vice Presi nt Matheso ri-Gas, Inc. 959 R to 46 E Pars'ppany, NJ 07054 Re: City of La Porte Industrial District Agreement Dear Mr. Gann: t , Vic.+ " x . FEB 13 �nn� OFFiCF TELEPHONE 281.471.1886 TELECOPIER 281.471.2047 KASKINSOHOUSTON.RR.COM JOHN-A®SWBELL.NET C TA SKINS®SWBELL.NET The City Secretary of the City of La Porte has brought to my attention that the number which appears in the upper right hand corner of your Industrial District Agreement "No. 2000-IDA-77" is incorrect. The correct number for your Agreement is "No. 2000-IDA- 71". I therefore enclose herewith corrected page 1 of the Agreement for your files. With best regards, I am, Yourr.- v y truly, nox W. Askins City Attorney City of La Porte KWA:sw Enclosure cc: Martha A. Gillett ////////City Secretary City of La Porte Ms. Melisa Lanclos Executive Secretary City Manager's Office City of La Porte NO. 2000-IDA-71 § STATE OF TEXAS § § COUNTY OF HARRIS § INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT OF LA PORTE, TEXAS, Texas, hereinafter made and entered into by and between the CITY a municipal corporation of Harris County, called "CITY", and MATHESON TRI-GAS, INC., a corporation, hereinafter called "COMPANY", W I T N E S S E T H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter "Land"); and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City Council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 24, 2000 EXHIBIT "A"• BEING A.4.263 ACRE TRAui OR PARCEL OF LAND SITUATED IN'THE RICHARD PEARSALL 1/3 LEAGUE, ABSTRACT NO. 625.'HARRIS COUNTY, TEXAS, BEING THE SAME PROPERTY DESCRIBED IN SPECIAL WARRANTY -DEED FROM LAI PROPERTIES, INC. TO 'TRI-GAS, INC. DATED AUGUST 19, 1987, RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. L301295, BEING 3 PARCELS OF LAND COMPRISING A CALLED 16.-00 ACRES: SAVE AND EXCEPT A TRACT OF LAND CALLED 8.8267 ACRES DESCRIBED IN DEED FROM LIQUID AIR, INC. TO M. G. BURDETT GAS PRODUCTS COMPANY DATED MAY 30, 1980. RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. GW 198 AND SAVE AND EXCEPT THAT CERTAIN TRACT OF LAND CALLED 2.9085 ACRES DESCRIBED IN SPECIAL WARRANTY DEED FROM TRI-GAS.. INC. TO LYNN A. REVAK AND BILLIE C. REVAK DATED OCTOBER 27, 1989, RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. M41.1083, SAID 4.263 ACRE TRACT OR PARCEL OF LAND HEREIN DESCRIBED BEING SHOWN ON 'PLAT OF EVEN DATE AND IS MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: .1 BEARINGS ARE REFERENCED TO A CALL OF NORTH 86 DEG, 52 MIN. 54 SEC. EAST ALONG THE SOUTHERLY MOST RIGHT-OF-WAY LINE OF FAIRMONT PARKWAY AS DESCRI8,0 IN SPECIAL WARRANTY DEED FROM LAI PROPERTIES, INC. TO TRI-GASi INC. RECORDED UNDER.HARRIS COUNTY CLERK'S FILE NO. L301295. COMMENCING AT A 5/8' IRON ROD FOUND IN THE SOUTHERLY MOST RIGHT-OF-WAY LINE OF FAIRMONT PARKWAY (250 FEET WIDE) AT ITS INTERSECTION WITH THE EASTERLY' MOST RIGHT-OF-WAY LINE OF BAY AREA BOULEVARD (150'FEET WIDE.), SAID IRON ROD BEING THE NORTHWESTERLY'MOST CORNER OF THAT CERTAIN TRACT OF LAND CALLED 17.466 ACRES CONVEYED FROM THE BOC GROUP, INC. TO TRI-GAS, INC.:BY SPECIAL WARRANTY DEED DATED SEPTEMBER 26, 1989, -RECORDED UNDER' HARRIS COUNTY CLERK'S FILE NO. M340690; THENCE NORTH 86 DEG. 56 MIN. 10 SEC. EAST ALONG THE SOUTHERLY MOST RIGHT-OF- WAY LINE OF THE 'SAID TRI-GAS, INC. TRACT CALLED 17.4.66 ACRES, A DISTANCE OF 901.23-FEET TO A 5/8" IRON ROD SET FOR THE NORTHWESTERLY MOST CORNER OF THE HEREIN DESCRIBED TRACT AND POINT OF BEGINNING, FROM WHICH A FOUND 5/8" IRON ROD BEARS NORTH 04 DEG. WEST, A DISTANCE OF 1.62 FEET1 THENCE NORTH 86 DEG. 52 MIN.- 54 SEC. EAST,. CONTINUING ALONG THE .SOUTHERLY MOST RIGHT-OF-WAY LINE OF FAIRMONT PARKWAY, A DISTANCE OF 456.67 FEET TO A 6" STEEL FENCE POST FOUND FOR THE NORTHEASTERLY MOST CORNER OF THE HEREIN DESCRIBED- TRACT. SAID FENCE POST BEING. ALSO THE NORTHWESTERLY MOST CORNER OF THAT CERTAIN TRACT OF LAND CALLED 6.8261 ACRES CONVEYED TO M. G. BURDETT GAS PRODUCTS COMPANY BY DEED RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. G561198; THENCE SOUTH O3 DEG. OfMIN. .06"SEC,. EAST, :ALONG THeWESTERUY�MO0 7t. tiNE OF THE SAID M. G. BURDETT GAS COMPANY TRACT CALLED 81.8267 ACRES, A DYSTANCE OF 380.05 FEET TO AN "X" RECOVERED FOR THE EASTERLY MOST SOUTHEAST CORNEA OF THE HEREIN DESCRIBED 'TRACT, SAID "X" BEING.SITUATED IN THE NORTHERLY MOST LINE OF THAT CERTAIN TRACT CALLED 2.9085 ACRES CONVEYED BY SPECIAL - WARRANTY DEED TO LYNN A. REVAK AND BILLIE C. REVAK RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. M4110B3; THENCE SOUTH 86 DEG. 52 MIN. 54 SEC. WEST ALONG THE NORTHERLY MOST LINE, OF THE SAID REVAK TRACT CALLED 2.9085 ACRES, A DISTANCE OF 37.93 FEET TO AN "X" RECOVERED IN CONCRETE FOR AN INTERIOR CORNER OF THE HEREIN DESCRIBED TRACT; THENCE -SOUTH 03 DFG. 07 MIN. 06 SEC. EAST ALONG AN INTERIOR LINE OF THE HEREIN DESCRIBED TRACT AND ALONG A COMMON LINE WITH THE SAID REVAK TRACT CALLED 2.9085 ACRES, A DISTANCE OF 60.71 FEET TO A 5/8' IRON ROD SET FOR THE WESTERLY MOST SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE SOUTH 87 DEG. 43 MIN. 53 SEC. WEST ALONG 'AN INTERIOR LINE OF THE HEREIN DESCRIBED TRACT AND ALONG A COMMON. LINE WITH THE SAID REVAK TRACT CALLED 2.9085 ACRES, A D•ISTANCE'OF 49.61 FEET TO A CHAIN LINK FENCE CORNER, POST RECOVERED FOR A CORNER OF THE HEREIN DESCRIBED TRACT; THENCE NORTH 02 DEG. 46 MIN. 37 SEC. WEST ALONG AN INTERIOR LINE OF THE HEREIN DESCRIBED TRACT AND ALONG A':COMMON'LINE WITH THE SAID REVAK TRACT CALLED 2.9085 ACRES, A DISTANCE OF 34.95 FEET TO A CHAIN LINK FENCE CORNER POST RECOVERED FOR A CORNER OF THE HEREIN DESCRIBED TRACT; THENCE SOUTH 86 DEC. 58 MIN. 07 SEC. WEST ALONG -A COMMON LINE BETWEEN THE HEREIN DESCRIBED TRACT AND THE NORTHERLY MOST LINE OF TME. SAID REVAK TRACT CALLED 2.9085 ACRES. A DISTANCE OF 369.34 FEET TO A 1/2" IRON -ROD. F`.OUND FOR THE SOUTHWESTERLY MOST CORNER OF THE HEREIN DESCRIBED TRACT, SA'IT) IRON ROD BEING SITUATED IN THE EASTERLY JAOST LINE OF THE SAID TRI-GAS.'•:I-NC. TRACT CALLED 17.466 ACRES: THENCE NORTH 03 DEG. 07 MIN, 06 SEC WEST ALONG THE WESTERLY MOST LINE -OF THE HEREIN DESCRIBED TRACT AND.THE EASTERLY MOST LINE OF THE SAID TRI-GAS. INC. TRACT CALLED 17,466 ACRES, A DISTANCE OF 404.51 FEET TG THE.POINT OF BEGINNING. CONTAINING 185.678.3 SQUARE FEET OR 4.263 ACRES OF LAND... I. DANIEL J. BAGGETT, A REGISTERED PROFESSIONAL LAND SURVEYOR, DO HEREBY CERTIFY THAT THIS PLAT CORRECTLY REPRESENTS A SURVEY MADE ON THE GROUND UNDER MY SUPERVISION AND CORRECTLY REPRESENTS THE FACTS FOUND AT THE TIME OF THIS SURVEY. DANI L J. BAG TT REGISTERED PROFESSIONAL LAND SURVEYOR TEXAS REGISTRATION NO. 4242 "EXHIBIT B" (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.) "EXHIBIT C° Page 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit "A" which is adjacent to Fairmont Parkway, State Highway 225, or State Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: ♦ One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. ♦ Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. ♦ One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights -of -way. ♦ Freestanding identification signs for multiple businesses shall not exceed 350 square feet. ♦ Freestanding identification signs shall not exceed 45 feet in height. ♦ Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50, of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3:1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be EXHIBIT C" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights -of -way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items b and c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto State Highway 225 or State Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and City. NO. 2000-IDA--73 STATE OF TEXAS COUNTY OF HARRIS INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and MATHESON TRI-GAS, INC., a L> ELA .a AtUr corporation, hereinafter called "COMPANY", W I T N E S S E T H: WHEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adopt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, pursuant to its policy, City has enacted Ordinance No. 729, designating portions of the area located in its extraterritorial jurisdiction as the "Battleground Industrial District of La Porte, Texas", and Ordinance No. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as Section 42.044, Texas Local Government Code; and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "All (hereinafter "Land") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said Districts and for such purpose desires to enter into this Agreement with Company pursuant to Ordinance adopted by the City Council of said City and recorded in the official minutes of said City: NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City referred to above, City and Company hereby agree with each other as follows: FINAL DRAFT: February 24, 2000 M City covenants, agrees and guarantees that during the term of this Agreement, provided below, and subject to the terms and provisions of this Agreement, said District shall continue to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, unless and until the status of said Land, or a portion or portions thereof, as an industrial district may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later provisions of this Agreement, City does further covenant, agree and guarantee that such industrial district, to the extent that it covers said Land lying within said District and not now within the corporate limits of City, shall be immune from annexation by City during the term hereof (except as hereinafter provided) and shall have no right to have extended to it any services by City, and that all Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (c) attempting to exercise in any manner whatever control over the conduct of business thereon; provided, however, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "C" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by City, Company agrees to render and pay full City ad valorem taxes on such annexed Land and improvements, and tangible personal property. Under the terms of the Texas Property Tax Code (S.B. 621, Acts of the 65th Texas Legislature, Regular Session, 1979, as amended), the appraised value for tax purposes of the annexed portion of Land, improvements, and tangible personal property shall be determined by the Harris County Appraisal District. The parties hereto recognize that said Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the unannexed area for the purpose of computing the "in lieu" payments hereunder. Therefore, the parties agree that the appraisal of the Land, improvements, and tangible personal property in the unannexed area shall be conducted by City, at City's expense, by an independent appraiser of City's selection. The parties recognize that in making such appraisal for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 Nothing herein contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, and tangible personal property in the annexed portion, for ad valorem tax purposes. A. On or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide City with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the Company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III (sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, Company shall pay to City an amount "in lieu of taxes" on Company's Property as of January 1st of the current calendar year ("Value Year") . D. Company agrees to render to City and pay an amount ,in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (5396) of the amount of ad valorem taxes which would be payable to City if all of the Company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 2. each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an amount equal to Thirty percent (301) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (c) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53-1) of the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 in accordance with the applicable provisions of the Texas Property Tax Code. with the sum of 1, 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed portion thereof as determined by appraisal by the Harris County Appraisal District. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, unless extended for an additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, that in the event this Agreement is not so extended for an additional period or periods of time on or before August 31, 2007, the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement. Company agrees that if the Texas Municipal Act, Section 42,044, Texas Local Government Code, is amended after January 1, 1994, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City to annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Company will waive the right to require City to comply with any such additional restrictions or obligations and the rights of the parties shall be then determined in accordance with the provisions of said Texas Municipal Annexation Act as the same existed January 1, 1994. V. This Agreement may be extended for an additional period or periods by agreement between City and Company and/or its assigns even though it is not extended by agreement between City and all of the owners of all land within the District of which it is a part. VI. A. In the event Company elects to protest the valuation for tax purposes set on its said properties by City or by the Harris County Appraisal District for any year or years during the terms hereof, nothing in this Agreement shall preclude such protest and Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, Company agrees to pay to City on or before the date therefor hereinabove provided, at least the total of (a) the total amount of ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu of taxes" on the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the 5 foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. When the City or Harris County Appraisal District (as the case may be) valuation on said property of Company has been so finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final conclusion of the controversy, then within thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder based on such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree with any appraisal made by the independent appraiser selected by City pursuant to Article II above (which shall be given in writing to Company), Company shall, within twenty (20) days of receiving such copy, give written notice to the City of such disagreement. In the event Company does not give such written notice of disagreement within such time period, the appraisal made by said independent appraiser shall be final and controlling for purposes of the determination of "in lieu of taxes" payments to be made under this Agreement. Should Company give such notice of disagreement, Company shall also submit to the City with such notice a written statement setting forth what Company believes to be the market value of Company's hereinabove described property. Both parties agree to thereupon enter into good faith negotiations in an attempt to reach an agreement as to the market value of Company's property for "in lieu" purposes hereunder. If, after the expiration of thirty (30) days from the date the notice of disagreement was received by City, the parties have not reached agreement as to such market value, the parties agree to submit the dispute to final arbitration as provided in subparagraph 1 of this Article VI B. Notwithstanding any such disagreement by Company, Company agrees to pay to City on or before December 31 of each year during the term hereof, at least the total of (a) the ad valorem taxes on the annexed portions, plus (b) the total amount of the "in lieu,, payments which would be due hereunder on the basis of Company's valuations rendered and/or submitted to City by Company hereunder, or the total assessment and "in lieu of taxes" thereon for the last preceding year, whichever is higher. 1. A Board of Arbitrators shall be created composed of one person named by Company, one by City, and a third to be named by those two. In case of no agreement on this arbitrator in 10 days, the parties will join in a written request that the Chief Judge of the U.S. District Court for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitrator") shall preside over the arbitration proceeding. The sole issue to be determined in the arbitration shall be resolution of the difference between the parties as to the fair market value of Company's property for calculation of the "in lieu" payment and total payment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including 6 expert opinion, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbitration Act (Chapter 171, "General Arbitration", Texas Civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. VII. City shall be entitled to a tax lien on Company's above described property, all improvements thereon, and all tangible personal property thereon, in the event of default in payment of "in lieu of taxes" payments hereunder, which shall accrue penalty and interest in like manner as delinquent taxes, and which shall be collectible by City in the same manner as provided by law for delinquent taxes. VIII. This Agreement shall inure to the benefit of and be binding upon City and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. If City enters into an Agreement with any other landowner with respect to an industrial district or enters into a renewal of any existing industrial district agreements after the effective date hereof and while this Agreement is in effect, which contains terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to amend this Agreement and City agrees to amend same to embrace the more favorable terms of such agreement or renewal agreement. X. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. Without such agreement neither party hereto would enter into this Agreement. In the event any one or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 corporation or circumstances shall be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of such words, phrase, clause, sentence, paragraph, section, article or other part of the Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. XI. Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said Land shall terminate. ENTERED INTO effective the 1st day of January, 2001. MAT - SON TRIAS, INC. (CO ANY) By: 'Name:-- Address: q rA a-,- <.t & P:;,, ATTEST: "Aal 0//// By: Cit r tary- APP'RgVED Knox W. Askins City maft&ge-r.4Ae ✓n City of La Porte P.O. Box 1218 La Porte, TX 77572-1218 Phone: (281) 471-1886 Fax: (281) 471-2047 ¢STY OF LA_PQRTE Mayor By: '41 City At4cza�a* ) CITY OF LA PORTE 604 West Fairmont Parkway La Porte, TX 77571 91 "EXHIBIT An (Metes and Bounds Description of Land) EXHIBIT "A" - BEING A 4.263 ACRE TRACT OR PARCEL OF LAND SITUATED 1N'THE RICHARD PEARSALL 1/3 LEAGUE. ABSTRACT NO. 625.-HARRIS COUNTY. TEXAS, BEING THE SAME PROPERTY DESCRIBED IN SPECIAL WARRANTY,DEED FROM LAI PROPERTIES, INC. TO 'TRI-GAS, INC. DATED AUGUST 19, 1987, RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. L301295, BEING 3 PARCELS OF LAND COMPRISING A CALLED 16.00 ACRES: SAVE AND EXCEPT A TRACT OF LAND CALLED 8.8267 ACRES DESCRIBED IN DEED FROM LIQUID AIR. INC. TO M. G. BURDETT GAS PRODUCTS COMPANY DATED MAY 30.• 1980, RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. G W 198 AND SAVE AND EXCEPT THAT CERTAIN TRACT OF LAND CALLED 2.9085 ACRES DESCRIBED IN SPECIAL WARRANTY DEED FROM TRI-GAS., INC. TO LYNN A. REVAK AND BILLIE C. REVAK DATED OCTOBER 27, 1989, RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. M411083, SAID 4.263 ACRE TRACT OR PARCEL OF LAND HEREIN DESCRIBED BEING SHOWN ON 'PLAT OF EVEN DATE AND IS MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: x BEARINGS ARE REFERENCED TO A CALL OF NORTH 86 DEG. 52 MIN. 54 SEC. EAST ALONG THE SOUTHERLY MOST RIGHT-OF-WAY LINE OF FAIRMONT PARKWAY AS DESCRIBED IN SPECIAL WARRANTY DEED FROM LAI PROPERTIES. INC, TO TRI-GAS, INC. RECORDED UNOER.HARRIS COUNTY CLERK'S FILE NO. L301295. COMMENCING AT A 5/8' IRON ROD FOUND IN THE SOUTHERLY MOST RIGHT-OF-WAY LINE OF FAIRMONT PARKWAY (250 FEET WIDE) AT ITS INTERSECTION WITH THE EASTERLY, MOST RIGHT-OF-WAY LINE 'OF BAY AREA BOULEVARD (150'FEET WIDE.), SAID IRON ROO BEING THE NORTHWESTERLY'MOST CORNER OF THAT CERTAIN TRACT OF LAND CALLED 17.466 ACRES CONVEYED FROM THE BOC GROUP. INC. TO TRI-GAS. INC.:BY SPECIAL• WARRANTY DEED DATED SEPTEMBER 26, 1989, -RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. M3406901 THENCE NORTH 86 DEG. 58 MIN. 10 SEC. EAST ALONG THE SOUTHERLY MOST RIGHT-OF- WAY LINE OF THE SAID TRI-GAS, INC. TRACT CALLED 17,4.66 ACRES, A DISTANCE OF 901.23 FEET TO A 5/6' IRON ROD SET FOR THE NORTHWESTERLY MOST CORNER OF THE HEREIN DESCRIBED TRACT AND POINT OF' BEGINNING, FROM WHICH A FOUND 5/6' IRON ROD BEARS NORTH 04 DEG. WEST.A DISTANCE OF 1.62 FEET1 THENCE NORTH 86 DEG. 52 MIN: 54 SEC. EAST..CONTINUIRG ALONG THE .SOUTHERLY MOST RIGHT-OF-WAY LINE OF FAIRMONT PARKWAY, A DISTANCE OF 456.67'FEET TO A 6" STEEL FENCE POST FOUND FOR THE NORTHEASTERLY MOST CORNER OF THE HEREIN DESCRIBED- TRACT, SAID FENCE POST BEING. ALSO THE NORTHWESTERLY MOST CORNER OF THAT CERTAIN TRACT OF LAND CALLED 8.8261 ACRES CONVEYED TO M. G. BURDETT ' GAS PRODUCTS COMPANY BY DEED RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. G561198; THENCE SOUTH 03 DEG. OT MIN, .06-SEC. •EAST, .ALONG THE''•WESTERUY T10ST'SNE "OF THE SAID M. G. BURDETT GAS COMPANY TRACT CALLED 8:8267 ACRES, A DISTANCE OF 380.05 FEET TO AN "X" RECOVERED FOR THE EASTERLY MOST SOUTHEAST COAkg OF THE HEREIN DESCRIBED'TRACT, SAID "X" BEING.SITUATED IN THE NORTHERLY MOST LINE OF THAT CERTAIN TRACT CALLED 2.9085 ACRES CONVEYED BY SPECIAL - WARRANTY DEED TO LYNN A. REVAK AND BILLIE C. REVAK RECORDED UNDER HARRIS COUNTY CLERK'S FILE NO. M411083; THENCE SOUTH 86 DEG. 52 MIN. 54 SEC. WEST ALONG THE NORTHERLY MOST LINE. OF THE SAID REVAK TRACT CALLED 2.9065 ACRES, A DISTANCE OF 37.93 FEET -TO AN "X" RECOVERED IN CONCRETE FOR AN INTERIOR CORNER OF THE HEREIN DESCRI8FO TRACT; THENCE -SOUTH 03 DE,G. 07 MIN. 06 SEC. EAST ALONG AN INTERIOR LINE OF THE HEREIN DESCRIBED TRACT AND ALONG A COMMON LINE WITH THE SAID REVAK TRACT CALLED 2.9085 ACRES, A DISTANCE OF 60.71 FEET TO A 5/8" IRON ROD SET FOR THE WESTERLY MOST SOUTHEAST CORNER OF THE HEREIN DESCRIBED TRACT: THENCE SOUTH 87 DEG. 43 MIN. 53 SEC. WEST ALONG 'AN INTERIOR LINE OF THE HEREIN DESCRIBED TRACT AND ALONG A COMMON.LINE WITH THE SAID REVAK TRACT CALLED 2:9085 ACRES, A 0-ISTANCE-05 49.61 FEET TO A CHAIN LINK FENCE CORNER. POST RECOVERED FOR A CORNER OF THE HEREIN DESCRIBED TRACT; THENCE NORTH 02 DEG. 46 MIN. 37 SEC. WEST ALONG AN INTERIOR LINE OF THE HEREIN 'DESCRIBED TRACT AND ALONG A:COMMON'LINE WITH THE SAID REVAK TRACT CALLED 2.9085 ACRES, A DISTANCE OF 34.'95 FEET TO A CHAIN LINK FENCE CORNER POST RECOVERED FOR A CORNER OF THE HEREIN DESCRIBED TRACT; . THENCE SOUTH 86 DEG. 58 MIN. 07 SEC. WEST ALONG'A COMMON LINE BETWEEN THE HEREIN DESCRIBED TRACT AND THE NORTHERLY MOST LINE OF TUE. SAID REVAK TRACT CALLED 2.9085 ACRES, A DISTANCE OF 369.34 FEET TG A 1/2" IRON -ROD t..OUND FOR THE SOUTHWESTERLY MOST CORNER OF THE HEREIN DESCRIBED TRACT, SA'fD IRON ROD BEING SITUATED IN THE EASTERLY IA1ST LINE OF THE SAID TRI-GAS, .:I -NC. TRACT CALLED 17.466 ACRES; THENCE NORTH 03 DEG. 07 MIN.. 06 SEC WEST ALONG THE WESTERLY M057 LINE -OF THE HEREIN DESCRIBED TRACT AND•THE EASTERLY MOST LINT= OF THE SAID TRI-GAS. INC. TRACT CALLED 17.466 ACRES. A DISTANCE OF 404.51 FEET TO THE .POINT OF BEGINNING, CONTAINING 185,678.3 SQUARE FEET OR 4.263 ACRES OF LAND,... I, DANIEL J. BAGGETT. A REGISTERED PROFESSIONAL LAND SURVEYOR, DO HEREB`i CERTIFY THAT THIS PLAT CORRECTLY REPRESENTS A SURVEY MADE ON THE GROUND UNDER MY SUPERVISION AND CORRECTLY REPRESENTS THE FACTS FOUND AT THE TIME OF THIS SURVEY. OF Q•Q Otis T fip o-f9 �NkL J.. BAGGETT ••^•••••-••»•-•-••••- DAN I L J . BAG TT 4242 e: REGISTERED PROFESSIONAL LAND SURVEYOR 7•'•dF O�.'OQ TEXAS REGISTRATION NO. 4242 ° su9 "EXHIBIT B" (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.) "EXHIBIT C° Page 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit "A" which is adjacent to Fairmont Parkway, State Highway 225, or State Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: ♦ One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. ♦ Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. ♦ One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights -of -way. ♦ Freestanding identification signs for multiple businesses shall not exceed 350 square feet. ♦ Freestanding identification signs shall not exceed 45 feet in height. ♦ Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50, of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3:1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be "EXHIBIT C" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights -of -way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items b and c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto State Highway 225 or State Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Code of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4. Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and City. EXHIBIT "C" Ordinance for Water Service Agreement ORDINANCE NO. 2005-�ZC& AN ORDINANCE APPROVING AND AUTHORIZING A RENEWAL AND EXTENSION OF THE WATER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND MATHESON TRI-GAS, INC. (formerly Airco), FOR A TERM COMMENCING UPON THE EFFECTIVE DATE OF PASSAGE AND APPROVAL OF THIS ORDINANCE AND EXPIRING ON DECEMBER 31, 2007; FINDING COMPLAINCE 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 opened 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. 2 PASSED AND APPROVED, this 14'b day of November, 2005. IC ATTEST: Martha A. Crillett City Secretary APPROVED: G Knox W. Askins City Attorney CITY OF LA PORTE Alton E. Porter Mayor 9 WATER SERVICE AGREEMENT STATE OF TEXAS } COUNTY OF HARRIS � This agreement made and entered into by and between the City of La Porte, a municipal corporation of Harris County, Texas, herein called "City", and Matheson Tri-Gas, a corporation hereinafter called "Company". I. That certain water service agreement between the parties, dated November 14, 2005, is hereby renewed and extended by agreement of the parties, for a term commencing on November 14, 2005 and expiring on December 31, 2007, upon the terms and provisions of the updated water service agreement between the parties. Entered into and effective this the 141h day of November, 2005. Company Name" Mathe Fri -Gas By: . a' Name (Please print): Gary T. Gann Title: Vice President & Secretary Address: 959 Rt. 46 E Parsippany, NJ 07054-00624 CITY �YZE By:L?16-�, Alton E. Porter, Mayor ATTEST: Mirth' A. Gillett City Secretary APPR VED AS TO FORM: Knox W. Askins City Attorney EXHIBIT "D" Water Service Agreement 1 STATE OF TEXAS § COUNTY OF HARRIS § WATER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY', and MATMSON TRI- GAS, INC. hereinafter called "COMPANY' I. COMPANY is the owner of certain real property which is situated in CITY'S Bayport Industrial District and not within the corporate limits of the CITY. CITY and COMPANY are parties to a current Industrial District Agreement. I" COMPANY is desirous of purchasing potable water from CITY for usual human domestic consumption and uses, and for limited industrial processes as hereinafter stated. Previous planning considerations for the long-range potable water supply of CITY did not include the needs of property located outside the city limits of CITY. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited water service. CITY agrees, however, to provide limited potable water service to COMPANY. For and in consideration of furnishing domestic potable water by CITY, the Parties hereto agree as follows, to -wit: COMPANY has made certain representations to CITY as to its number of employees, and/or its desired amount of potable water for limited industrial processes, as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. Upon review of these representations, the City has determined the following: Number of Company Employees on site Number of Contract Employees on site Total on -site Employees 2 7 0 7 Potable Water Approved for Domestic Use (Total on -site Employees times 50 gpd per employee) 350 *Potable Water Approved for Industrial Processes (gpd) 0 Total Amount of Potable Water Approved for Company (Average Daily Demand, gpd) 350 IV. CITY has determined that adequate facilities are available to CITY to furnish potable water to COMPANY based on the following terms and conditions, to -wit: (A) Company shall pay to CITY a one-time administrative connection charge of N/A . (B) Potable water used for Industrial Processes shall be limited to the following: (C) COMPANY shall file an application for water service with CITY'S Utility Billing Division and pay appropriate deposit and water meter charge. CITY shall be responsible for furnishing and installing meter at Company's expense. COMPANY shall be responsible for installing appropriate meter box to be approved by City. (D) Where applicable, COMPANY shall also pay to CITY $ N/A as a pro-rata reimbursement for installation of utility mains funded by other parties. (E) The total amount of potable water approved (average daily demand) is established at NINE HUNDRED (900) gallons per day. This number is based on an average of fifty (50) gallons per employee per day established by CITY, plus any amount approved for industrial processes. 3 (F) The average monthly demand of 10,675 gallons is established by multiplying the average daily demand by a factor of 30.5, which shall be used to facilitate service billings. (G) The cost of water up to the average monthly demand of 10675 gallons shall be one hundred fifty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (IT) The cost of water for amounts used in excess of the established average monthly demand shall be two hundred percent (200%) of the CITY'S raze as established from time to time for commercial customers inside its corporate limits. (I) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly demand of 10675 gallons. Repeated consumption greater than the established average monthly demand may result in termination of service. (J) CITY shall have the right to interrupt or temporarily suspend said water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of the citizens of La Porte. (K) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (L) The total cost for the engineering design and construction of any potable water main, service line, back flow preventer, meter or other required appurtenances will be the responsibility of COMPANY. (M)COMPANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. (N) All plumbing installed by COMPANY connected to the domestic water line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and 4 all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and code enforcement personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY plumbing inspectors shall have the right to inspect any and all work related to the furnishing of potable water to COMPANY. (0) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross -connections. (P) The potable water supply system will be segregated from any existing and future COMPANY fire protection system. (Q) There shall be no resale of the water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. V. ,All expenses of the installation of the meter, service lines from the main to the meter, and from the meter to COMPANY'S facilities, shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own the meter. VI. CITY will have ownership and maintenance responsibility for its water mains, and service lines up to and including CITY'S water meter. In the event a State or Harris County license, permit, or permission to install the water main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. W1 CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water facilities, and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notify COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. F VIE. CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (10) days may result in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water supply is threatened. IIm Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare for transition to another water supply. If the transition is not complete within said six-month period, CITY shall have the right to terminate water service at its sole discretion. X. In the event of any conflict between the terms and provisions of this Water Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Water Service Agreement shall control, to the extent of such conflict. The term of this Agreement shall terminate on December 31, 2007. However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right of termination. ENTERED INTO effective the `t day of L'� �% L��, 2005. CITY OF LA PORTE ATTEST: M a &AG4iUett City Secretary APPROVED: Knox W. Askins City Attorney City Attorney PO Box 1218 LaPorte, TX 77572-1218 Phone: (281) 471-1886 Fax: (281) 471-2047 MATHESON TRI-GAS Name: Z4 A✓L Title: Y P S c-La-t-�4 Address: 9 S' ' a-r Div ` ITY OF LA P�ORTE By. Alton E. Porter Mayor By: IL Debra B. Feazelle City Manager City of La Porte 604 W. Fairmont Parkway LaPorte, TX 77571 Phone: (281) 471-5020 Fax: (281) 842-1868 0 EXHIBIT "E" Area Map F REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 14, 5_ Requested By: Ray Men Department: —T,MS Report: Resolution: Ordinance: X Exhibits: Copy of Contract Exhibits: Exhibits: Annroriation Source of Funds: N/A Account Number - Amount Budgeted: Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION The City has negotiated a new contract with the Association of Bayport Companies, Inc., for Emergency Medical Service at the Bayport Industrial Area for a period of two years. Attached is an ordinance authorizing the City Manager to execute a contract effective October 1, 2005 with the Association of Bayport Companies, Inc. for Emergency Medical Service at the Bayport Industrial Area. Rate based on same as last ABC contract term and proposed contract for the Port of Hoston. The previous 2004-05 contract expired on September 30, 2005 and a month -to -month agreement was negotiated by staff pending a new contract negotiation. Recommend that council approve the City Manager to execute the new original contract attached. Action Required by Council: Approve an Ordinance authorizing the City Manager to execute a contract with the Association of Bayport Companies for the City of La Porte EMS Division. Aaaroved for City Council Agenda A4/'- eGaNe"a-zielie', ity anager Date �o u,4/ ORDINANCE NO. 2005_ aXY� AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND THE ASSOCIATION OF BAYPORT COMPANIES, INC., FOR EMERGENCY MEDICAL SERVICES, 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 of the City of La Porte hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. 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 of the City of La Porte 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. ORDINANCE NO. 2005- A i 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 14th day of November, 2005 Ca OF LA RTE By: v Alton E. Porter, Mayor ATTEST: 9 Marthd A. Gill tt, City Secretary AP VED: K kins, City Attorn y STATE OF TEXAS COUNTY OF RABBIS ' THIS CONTRACT made and entered into by and between the CITY OF LA PORTE, a municipal corporation, of Harris County, Texas, hereinafter referred to as "LA PORTE"; and the ASSOCIATION OF BAYPORT COMPANIES, INC., a Texas non-profit corporation, hereinafter referred to as "A.B.C.", WHEREAS, A.B.0 is in need of certain Emergency Medical Services for the benefit of the people at its Service Area as outlined on Exhibit "A" attached hereto; and wBEREAS, LA PORTE is able and willing to provide said governmental services to AB.C., upon the terms, conditions, and covenants herein contained: 1. For and during the years beginning on the 1st day of October, 2005, and ending on the 30th day of September, 2007, LA PORTE agrees to furnish to A.B.C., the emergency medical services hereinafter more specifically described. This agreement shall remain in effect after September 30, 2007, until cancelled by either party hereto giving ninety (90) days written notice to the other party. R1 For and in consideration of the emergency medical services to be provided by LA PORTE, A.B.C. agrees to pay LA PORTE the sum of Seventeen Dollars ($17.00) per on -site employee of the ASSOCIATION OF BAYPORT COMPANIES, INC. members, comprised within the Service Area. Such payment shall be made on or before the 1 st day of October 2005. The employee count, which A.B.C. represents to LA PORTE to be approximately between Five Thousand (5,000) and Six Thousand (6,000) on an annual basis, shall be based upon the number of full-time equivalent, on -site employees and shall include the number of recurring -contract workers (such as maintenance contracts that are used for scheduled plant maintenance). The number of covered personnel is to be provided by each individual plant within the Service Area and furnished by A.B.C. for the computation of the annual fee, which shall occur on or before October 1, 2005. A.B.C. shall furnish to LA PORTE said census count furnished to them during the month of September during each year of this contract. iu LA PORTE agrees to provide emergency medical services at A.B.C.'s Service Area, LA PORTE shall transport patients to one of the nearest hospitals providing emergency services that is defined by the transport policy of the City of La Porte Emergency Medical Services. LA PORTE shall be permitted to charge, to each patient, its most current and customary Emergency Medical Service charges as adopted by City Council. IV. Sole discretion will rest with the LA PORTE Director of Emergency Medical Services, or his duly authorized assistants, as to the personnel and equipment that will answer each emergency medical services request, provided, emergency medical services protection will be adequate (meaning reasonable protection, considering available personnel and equipment of LA PORTE's Emergency Medical Services) and dispatch of personnel and equipment to provide emergency medical services within the corporate limits of the City of LaPorte. V. LA PORTE agrees to operate the ambulances in accordance with the requirements of State and Federal law, and applicable municipal or county ordinances, as the same now exist, and as may be amended from time to time hereafter. VI. During the term of this Contract and any extension thereof, LA PORTE shall purchase and keep in full force and effect, public liability insurance on each of its ambulance units, and professional liability insurance (malpractice insurance) on each of its employees administering patient care, with minimum limits of $100,000.00 for each single occurrence for injury to or destruction of property; $100,000.00 for each person; and $300,000.00 for each accident. LA PORTS shall keep and maintain Workers' Compensation insurance on its employees. LA PORTE shall maintain collision and liability insurance on the ambulances, with at least maximum limits of $100,000.00 for each single occurrence for injury to or destruction of property; $100,000.00 for each person; $300,000.00 for each single occurrence for bodily injury or death; and uninsured and under -insured motorists coverage providing at least $100,000.00 for each person, and $300,000.00 for each single occurrence for bodily injury or death. Notwithstanding the foregoing, LA PORTE shall not be required to obtain insurance in excess of liability limits established in the Texas Tort Claims Act, Section 101.001 et seq, of the Texas Civil Practice and Remedies Code, in cases where said Act is applicable. LA PORTE shall file certificates of insurance coverage with A.B.C. during the terms of this Contract and any extension thereof. On all said insurance policies, A.B.C. shall be named as an additional insured. M Either A.B.0 or LA PORTE may cancel this Contract, without cause, after giving at least ninety (90) days written notice to the non -canceling party. Such notice shall be sent by LA PORTE to A.B.C. at Post Office Box 691, La Porte, Texas 77572-0691. Such notice shall be sent by A.B.C. to LA PORTE at 604 West Fairmont Parkway, La Porte, Texas 77571. Q This Contract shall become effective at 12:00 A.M. Central Time, on the 1 st day of October, 2005, and shall remain in full force and effect until the 30th day of September, 2007, unless otherwise cancelled as provided in paragraph VH above. This Contract is entered into subject to the Charter and Ordinances of the City of LaPorte, and all applicable state and federal laws. ►® This Contract constitutes the entire agreement between the parties and supersedes all prior contemporaneous communications or agreements, written or oral. This Contract may be amended only by a written instrument signed by all parties. Texas. This Contract shall be governed by and construed in accordance with the laws of the State of EXECUTED IN DUPLICATE ORIGINALS, as of this the day of h 0 DP tn M 2005. CITY OF LA PORTE �I By: C(� "'Debra Brooks eazelle City Manager ATTEST: Martha A. Gillett City Secretary ATTEST: Colleen Hicks, Secretary ASSOCIATION OF BAYPORT COMPANIES, INC. By: __ o President po,q 0,e4i PAP raga/ og -W fA u N i - rea r ( o.14u� A REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Reed: November 14, 2005 Requested By: Ray Nakn Department: 'rsxc Report: Resolution: Ordinance: X Exhibits: Copy of Contract Exhibits: Exhibits: Appropriation Source of Funds: NIA Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO The City has negotiated a new contract with the Port of Houston Authority for Emergency Medical Service at the Barbour's Cut Terminal for a period of twenty-one months, in the amount of $2,175.00 monthly. Attached is an ordinance authorizing the City Manager to execute a contract effective January 1, 2006 with the Port of Houston Authority for Emergency Medical Service at the Barbour's Cut Terminal. The current 2004-05 contract expires on December 31, 2005. 2004-05 Contract was based on a POH/BCT population of 1,640 employees — Total annually $28,000.00 2006.0; Contract is based on a POH/BCT population of 1,535 employees — Total annually $26,095.00 AOOC3 -OlQ The Port of Houston Authority will vote in December, 2005 to approve this new 2006-07 contract. Recommend that council approve the City Manager to execute the new original contract upon its submittal by POH. Action Required by Council: Approve an Ordinance authorizing the City Manager to execute a contract with the Port of Houston Authority for the City of La Porte EMS Division. Approved for City Council Agenda A ]A 6-aA& �4 -�� 5 ra Feazelle, City Manaig Date ORDINANCE NO. 2005-2j65" AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND THE PORT OF HOUSTON AUTHORITY OF HARRIS COUNTY, TEXAS, FOR EMERGENCY MEDICAL SERVICES, 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 of the City of La Porte hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. 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 of the City of La Porte 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. ORDINANCE NO. 2005- 90, 5- 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 14th day of November, 2005 C Y OF LA TE By:y, Alton E. Porter, Mayor ATTEST: '-�6441 eq&l Martha A. Gillett, City Secretary APPROVED: nox W. Askins, City Attorney wrr, T , Cjry A7.7-i" . V REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 14 2005 Requested By: Mayor A ton E. Porter Department: City Council Report: Resolution: X Ordinance: District Exhibits: Resolution Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION La Porte City Council to approve a resolution nominating Bill Harry, to serve as a member of the Board of Directors of Harris County Appraisal District. Action Required by Council: Approve resolution as presented. Approved for City Council Agenda ALk6 Debra B. Feaze le, City Mana6kr Date RECEIVE OCT 19 20BS CITY 3ECRETANY'S OFFIC& Harris County Appraisal District Interoffice Memorandum OFFICE OF THE CHIEF APPRAISER TO: Presiding Officers of Taxing Units Served by the Harris County Appraisal District FROM: Jim Robinson, Chief Appraiser' SUBJECT: Election of Board of Directors of the Harris County Appraisal District DATE: October 17, 2005 The nomination period for board candidates representing the small cities, school districts, and conservation & reclamation districts closed October 14, 2005. The names of all candidates officially nominated to me on or before that date are reflected on the enclosed "Certification of Ballot" forms. Candidates for contested positions are listed alphabetically on the ballot in the manner required by the Texas Tax Code. To assist you in the election procedure, I have enclosed a Certification of Ballot and a suggested form of resolution for casting your vote for the candidate representing your type of taxing unit. Ballot forms for all three types of units are enclosed to make you aware of all nominees, even though only taxing units of a particular type may vote in the election applicable to that type of unit. The governing body of each taxing unit is entitled to one vote for the candidate of its choice from thrnames appearing on the appropriate Certification of Ballot. No later than December 15, 2005, each governing body must cast its vote for one of the nominees, formally adopt a resolution naming the person for whom it votes, and submit a certified copy to the chief appraiser. The vote must be by resolution. The resolution, or a certified copy thereof, together with the completed Certification of Ballot, must be delivered to Jim Robinson, Chief Appraiser, 13013 Northwest Freeway, Houston, Texas 77040, or mailed to P. O. Box 920975, Houston, Texas 77292-0975 to arrive before Thursday, December 15, 2005. The outside of the envelope should be marked "Ballot for Board of Directors." Presiding Officers of Taxing Units October 17, 2005 Page 2 On Friday, December 16, 2005, the chief appraiser will count the votes, declare the results, and notify the winners, the nominees, and the presiding officers of each taxing unit. A tie vote will be resolved by a method of chance chosen by the chief appraiser. These procedures do not apply to Harris County, the City of Houston, or the Houston Independent School District. Those units will select their board member by adopting a resolution appointing such member by December 15, 2005, and delivering an original or certified copy to the Office of the Chief Appraiser. If you have questions about the board selection process, please call me at 713/957-5291. Attachments c: HCAD Board Members Tax Assessors Attorneys RESOLUTION NO. u ' A RESOLUTION OF THE THE CITY COUNCIL OF THE %. CITY OF Doaf -(- - CASTING ITS BALLOT FOR THE ELECTION OF A PERSON TO THE BOARD OF DIRECTORS OF THE HARRIS COUNTY APPRAISAL DISTRICT WHEREAS, the chief appraiser of the Harris County Appraisal District, Harris County, Texas, has delivered to the mayor of this city, the names of those persons duly nominated as candidates to serve in that position on the board of directors of the Harris County Appraisal District, representing and to be filled by the cities other than the City of Houston, participating in said appraisal district; and WHEREAS, this city deems it appropriate and in the public interest to cast its vote for the candidate of its choice to fill such position; now, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF L. & rj (Zl Section 1. That the facts and recitations set forth in the preamble of this resolution be, and they are hereby, adopted, ratified, and confirmed. Section 2. That the City of L, Pot J , cast its vote, and it does hereby cast its vote, for ; i) Al) to fill the position on the board of directors of the Harris County Appraisal Vistrict, representing and to be filled by the cities, other than the City of Houston, participating in the appraisal district. Section 3. That the mayor be, and he or she is hereby, authorized and directed to deliver or cause to be delivered an executed or certified copy of this resolution to the chief appraiser of the Harris County Appraisal District no later than December 15, 2005. PASSED AND APPROVED this / w4ay of 9'� �) U 'r� � , 2005. Mayor ATTEST: (For Use by Cities Other Than the City of Houston) - CERTIFICATION OF BALLOT FOR BOARD OF DIRECTORS HARRIS COUNTY APPRAISAL DISTRICT -i certify ��day of certi that on the err 1 yr, R,r , 2005, the City Council of the City of did by resolution cast its ballot for the following nominee to serve as a member of the Board of Directors of the Harris County Appraisal District. (Place an "X" in the square next to the candidate of your choice.) Bill Harry Laurence W. Tobin [ ] I further certify that a true and correct copy of the resolution casting such ballot is attached hereto. WITNESS MY HAND this j4-'day of k,' jiUPIr t5�( , 2005. Mayor ATTEST: REQUEST FOR CITY COUNCIL AGENDA ITEM l Agenda Date Requested: 11/14/05 Requested By: Richard Reff — Department: Police Department — Report: Resolution: Ordinance: X Exhibits: Proposed Amendement of Ordinance 2005-2802A Exhibits: Exhibits: Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: YES NO SUMMARY & RECOMMENDATION On October 24, 2005, a workshop on Motor Assisted Scooters and Pocket Bikes was presented to City Council. Council recommended changes to Ordinance 2005-2802 in regard to age of operator, use of helmet and use of motor assisted scooters on sidewalks. The original proposed ordinance has been modified to include these recommendations. Action Required by Council: Approve changes presented in Ordinance 2005-2802 A Approved for City Council Agenda p-�-O5 Debra Feazelle Date ORDINANCE NO.2005-2802-A AN ORDINANCE AMENDING CHAPTER 70 OF THE CODE OF ORDINANCES BY AMENDING ARTICLE I, SECTION 70-1 "DEFINITIONS"; ARTICLE III, SECTION 70-75 "RESTRICTIONS AND PROHIBITIONS ON LOCATION AND USE OF MOTOR -ASSISTED SCOOTERS", AND SECTION 70-76 "PENALTIES"; RELATING TO THE USE AND OPERATION OF MOTOR ASSISTED SCOOTERS BY REGULATING THE OPERATION OF MOTOR ASSISTED SCOOTERS ON CERTAIN PATHS, TRAILS, SIDEWALKS, ALLEYS, STREETS AND HIGHWAYS; PROHIBITING THEIR USE DURING NIGHTTIME HOURS; REQUIRING THE OPERATOR OF A MOTOR ASSISTED SCOOTER BE 16 YEARS OF AGE OR OLDER; REQUIRING THAT INDIVIDUALS UNDER 21 YEARS OF AGE WEAR A PROTECTIVE HELMET WHILE OPERATING A MOTOR ASSISTED SCOOTER; PROVIDING THAT ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE FINED IN ANY SUM NOT MORE THAN FIVE HUNDRED DOLLARS ($500.00); PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS: The Texas Legislature enacted laws regulating the use of motor assisted scooters; and WHEREAS: municipalities are authorized to prohibit the operation of motor assisted scooters on any street or highway within the municipality; WHEREAS: the City Council of the City of La Porte (City) has determined that restriction of the use and operation of motor assisted scooter on the streets, highways, sidewalks, alleys, paths and the trails within the City of La Porte is necessary in the interest of safety; and WHEREAS: State law safety provisions applicable to bicycle riders apply to the use and operation of a motor assisted scooter; and WHEREAS: the City Council has investigated and determined that it will be advantageous, beneficial and in the best interest of the citizens of La Porte to prevent potential traffic hazards and safety hazards resulting from unauthorized use of streets, highways, alleys and certain pathways and resulting form children failing to wear helmets. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, THAT: SECTION 1. The findings set forth are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That Chapter 70, Article 1 "In General", Section 70-1 "Definitions" is hereby amended by adding the following definitions, to be included in proper alphabetical sequence, and shall hereafter read as follows, to -wit: "Sec.70-1. Definitions. Motor Assisted Scooter shall have the same meaning assigned by Texas Transportation Code Chapter 551, Section 551.301(2), as it exists or may be amended, and includes self-propelled device with at least two (2) wheels in contact with the ground during operation; a braking system capable of stopping the device under typical operation conditions; a gas or electric motor forty (40) cubic centimeters or less; a deck designed to allow a person to stand or sit while operating the device; and the ability to be propelled by human power alone. Pocket Bike or Minimotorbike means a self-propelled vehicle that is equipped with an electric motor or internal combustion engine having a piston displacement of less than 50 cubic centimeters, is designed to propel itself with not more than two wheels in contact with the ground, has a seat or saddle for the use of the operator, is not designed for use on a highway, and is ineligible for a certificate of title under Chapter 501 of the Texas Transportation Code. The term does not include the following vehicles or devices, as defined by the Texas Transportation Code: • A moped or motorcycle, • A electric bicycle or motor -driven cycle, • A motorized mobility device • An electric personal assistive mobility device, • A neighborhood electric vehicle SECTION 3. That Chapter 70, Article III "Operation of Vehicles", Section 70-75 is amended by replacing Section 70-75, "Restrictions and Prohibitions on Location and Use of Motor -Assisted Scooters", and shall hereafter read as follows, to -wit: "Sec. 70-75. Restrictions and Prohibitions on Location and Use of Motor -Assisted Scooters a) It is unlawful for any person to operate or ride a Motor Assisted Scooter on any public way or public property for which the posted speed limit is more than thirty- five (35) miles per hour. The motor assisted scooter may cross a road or a street at an intersection where the road or street to be crossed has a posted speed limit of more than thirty-five (35) miles per hour. b) It is unlawful for any person to operate a Motor Assisted Scooter on any sidewalk within the City, except on paths and trails designated for the exclusive operation of bicycles. c) A Motor Assisted Scooter shall only be operated on any public streets or highways during daytime hours. d) It is unlawful for any person under the age of 16 to operate a Motor Assisted Scooter on any path, trail, sidewalks, alley, street or highway within the City, except on paths and trails designated for the exclusive operation of bicycles. e) It is unlawful for any person under the age of 21 to operate a Motor Assisted Scooter without wearing a helmet. f) It is unlawful for any person to operate or ride a motor assisted scooter on a street, road, or highway that has an improved surface that is greater than twenty-eight (28) feet in width. g) It is unlawful for any person to transport any passenger on any motor assisted scooter. h) It is unlawful for a parent to allow or permit a person under the age of 16 to operate or ride a motor assisted scooter on any path, trail, sidewalk, alley, street or highway within the City, except on paths and trails designated for the exclusive operation of bicycles. i) A Pocket Bike or Minimotorcycle, as defined in this Chapter, shall not be construed as a Motor Assisted Scooter and may not be operated within the City on any sidewalk, highway, road, street, or path set aside for exclusive use of bicycles." SECTION 4. That Chapter 70, Article III "Operation of Vehicles", Section 70-76 is amended by replacing Section 70-76, "Penalties for violating section", and shall hereafter read as follows, to -wit: "Sec. 70-76. Penalties for violation of section (a) A person who violates any provision of this section shall be guilty of a Class C misdemeanor and upon conviction shall be fined an amount not exceeding five hundred dollars ($500.00). (b) A person who violates Section 70.75 (e) shall be guilty of a Class C misdemeanor and upon conviction shall be fined an amount not exceeding fifty dollars ($50.00) upon the first conviction and an amount not exceeding one hundred dollars ($100.00) upon the second and each subsequent conviction. a. The Municipal Court shall dismiss a charge against a person and/or parent for a first offense under Section 70.75 (e), upon receiving proof that : i. The defendant acquired a helmet for the person who was operating or riding the motor assisted scooter in violation of Section 70.75 (e); and ii. The defendant acquired the helmet on or before the tenth day after receiving the citation of the violation. b. If the charge against a person is dismissed under Section 70.76 (b) a., a later conviction for a violation of Section 70.75 (e) shall be considered a second or subsequent conviction for purposes of subsection Section 70.76 (b). " SECTION 5. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, it is hereby declared to be the intention of the City of Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared invalid. SECTION 6. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council 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 7. Any person, as defined in Section 1.02(27) Texas Penal Code, who shall violate any provision of this Ordinance, shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine not to exceed Five Hundred Dollars ($2,000.00). SECTION 8. This Ordinance shall become effective fourteen (14) days after its passage and approval. The City Secretary shall give notice to the passage of the notice by causing the caption to be published in the official newspaper of the City of La Porte at least twice within ten (10) days after the passage of the Ordinance. PASSED AND APPROVED THIS THE J9k� DAY OF Uhl/%) 2005. CITY OF LA PORTE Alton E. Porter, Mayor ATTEST: APPROVED: By: 1 ASKINS, Assistant City Attorney 0 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 14 2005 Requested By: S. Gillett Department: Public Works Report: Resolution: Ordinance: X Exhibits: Two (2) Ordinances Exhibits: Standard Form of Agreement — Lump Sum Exhibits Letter from Hale -Mills — Increase for Wind Loading Appropriation Source of Funds: Fund 046 Account Number: 046-9892-904-1100 Amount Budgeted: jS7.,700,000 Amount Requested: $10,191,593 Budgeted Item: YES SUMMARY & RECOMMENDATION Qualification Statements were received for the design/build of the new police facility on August 2, 2005. Eleven (11) Statements were received, ranked and the top five (5) respondents were selected to submit proposals for the Project. Three (3) proposals were received on September 2, 2005. The proposals were ranked according to the published criteria, and the best value, which was also the lowest cost proposal, was submitted by Hale -Mills Construction, Ltd. in the amount of $8,719,315, Second and third -ranked proposals were submitted by 3D/International, Inc. ($9,655,003) and Satterfield & Pontikes Construction, Inc. ($10,096,834). Review of all three proposals revealed that not all items specified were clearly identified and priced. Additionally, the top proposal from Hale -Mills qualified their estimate to revise the price after design was 40/o complete. h► order to answer these questions, a meeting was held with the City, the Program Manager (Huitt-Zollars) and Hale -Mills. Questionable costs and conditions were identified, in writing, to be discussed at the meeting. Hale -mills admitted they had left off several key items in the estimate, and submitted a revised cost of $9,044,315, an increase of $325,000 for four (4) items related to cabling of the communications and security systems. Additionally, furnishings (furniture and office equipment) was not included in the proposal. In fact, none of the three (3) proposals including furnishings. Hale -Mills proposed to include a furniture allowance, at a not to exceed cost of $650,000, which would be used as needed for the furnishing of the facility. This allowance would be approved by the City. This would bring the total cost to $9,694,315. Finally, Hale -Mills agreed to a firm -cost contract with no future escalation. The city and the contractor agreed to the revised costs, and a Standard Form of Agreement Between Owner and Design -Builder — Lump Sum is attached. With a 2% contingency of $193,886, total authorization for the Project would be $9,888,201. With the recent hurricane activity, the design wind loading of the building is under reconsideration. The specifications call for a design of 120 mph (Category 3). It has been suggested that the design be increased to accommodate a Category 4 storm (150 mph). The additional cost to increase the design wind loadiug to 150 mph is $297,443, per the attached letter, increasing the cost to $9,991,758. With a 2% contingency of $199,835, total authorization for the Project would be $10,191,593. The original budget of $7,700,000 was discussed at the July 11, 2005 workshop meeting. Council was advised that the projected cost was $10,500,000. Potential sources of additional funding include Certificates of Obligation. City Council indicated that the Project should go forward on this basis. Action Required by Council: Approval of an Agreement between the City of La Porte and Hale -Mills Construction, Ltd. For the design -build of the La Porte Police Facility for a lump sum price of $9,694,315; with a 2% contingency of $193,886, for a total authorization of $9,888,201. OR Approval of an Agreement between the City of La Porte and Hale -Mills Construction, Ltd. For the design -build of the La Porte Police Facility, increasing the design wind loading to 150 mph, for a lump sum price of $9,991,758, with a 2% contingency of $199,835, for a total authorization of $10,191,593. Approved for City Council Agenda ,A kv4 ' l ebra eazelle City Manag Date ORDINANCE NO. 2005- AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND HALE -MILLS CONSTRUCTION, LTD., FOR THE DESIGN -BUILD OF THE LA PORTE POLICE FACILITY; INCREASING THE DESIGN WIND LOADING TO 150 MPH, APPROPRIATING NOT TO EXCEED $9,991,758.00 PLUS A CONTINGENCY OF $199,835.00, TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum not to exceed $9,991,758.00, plus a contingency of $199,835.00, from Account No. 046-9892-904-1100, and other lawfully available funds, A,n fund balances on hand at the date of passage and approval of this ordinance, and future lawfully available funds, 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. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 14th day of November, 2005. ATTEST: Martha A.illett City Secretary APPROVED: Knox W. Askins City Attorney CITY OF LA PO E By. Alton E. Porter Mayor I 0 ORDINANCE NO. 2005- S AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN HE CITY OF LA PORTE AND HALE -MILLS CONSTRUCTION, LTD., FOR THE DESIGN -BUILD OF THE LA PORTE POLICE FACILITY; APPROPRIATING NOT TO EXCEED $9,694,315.00 PLUS A CONTINGENCY OF $193,886.00, TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum not to exceed $9,694,315.00, plus a contingency of $193,886.00, from Account No. 046-9892-904-1100, and other lawfully available funds, e.g., fund balances on hand at the date of passage and approval of this ordinance, and future lawfully available funds, 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. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 14th day of November, 2005. ATTEST: Martha A. Gillett CiLy Secretary APPROVED: ��� G4 Knox W. Askins City Attorney CITY OF LA PORTE By: Alton E. Porter Mayor 2 ==• �== Document G701TM - 2001 Change Order PROJECT (Name and address): CHANGE ORDER NUMBER: 002 OWNER: LaPorte Police Department DATE: December 4, 2006 ARCHITECT: 3001 North 23rd Street La Porte, Texas 77571 CONTRACTOR: TO CONTRACTOR (Name and address): ARCHITECT'S PROJECT NUMBER: FIELD: ED Hale -Mills Construction, Ltd. CONTRACT DATE: November 28, 2005 4130 Bellaire Boulevard, Suite 210 CONTRACT FOR: Design -Build of LaPorte Police OTHER: ❑ Houston, Texas 77025 Department R THE CONTRACT IS CHANGED AS FOLLOWS: (Include, where applicable, any undisputed amount attributable to previously executed Construction Change Directives) RFP No. 2: Door Change from glass aluminum to hollow metal <$1,500.00> RFP No. 3: Revised pricing per revisions $42,371.00 RFP No. 4: Value Engineering <$106,533.00> RFP No. 5: Rain Day Delays - June 5 calendar days RFP No. 6: Rain Day Delays - July 16 calendar days RFP No. 8 & 9: Contingency Credit RFP. No. 8: Earthwork and Site Utilities — prices for pipe, inlets, cement sand, select fill, fuel and maintenance — increases ranged from 3% to 17% with a weighted average of 10% Total escalation $34,361.00 Concrete — from August 2005, reinforcing steel has increased by $2,875.00 and concrete has increased by $17,995 - Total escalation $20,870.00 Hollow Core Plank — price increase is approximately 14% from a year ago — Total escalation $7,390.00 Masonry — price increase of approximately 12% on Materials has been experienced in the last year Total escalation $12,388.00 Pre -Engineered Building Structure: 1) Nov 2005 experienced 6% increase in material 2) Apr 2006 experienced 3.5% increase in material 3) June 2006 experienced 3.5% increase in material 4) Jul 2006 experienced 6% increase in material Total escalation $70,093.00 Glass and Storefront — glass cost has increased approximately 25% and aluminum has increased approximately 20% since August 2005 — Total escalation $11,227.00 Drywall — due to the increase of gypboard, accessories and Metal materials from August 2005 — Total escalation $16,996.00 Acoustical — price increase in materials approximately 9% from this time a year ago — Total escalation $7,100.00 Flooring — Carpet, VCT & Resilient Base — price increase Of material is 5% from August 2005 $7,228.00 Painting — price increase of material is 11% from Aug 2005 Total escalation $2,500.00 AIA Document G701 TM — 2001. Copyright © 1979, 1987, 2000 and 2001 by The American Institute of Architects. All rights reserved. WARNING: This Al, Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 08:55:39 on 12/06/2006 under Order No.1000227951_1 which expires on 3/16/2007, and is not for resale. User Notes: (3818693001) Raised Access Flooring — price increase from the manufacture Since July 2005 is 17% - Total escalation $6,400.00 Plumbing — price increase of approximately 5% on material Total escalation $5,272.00 Fire Protection — Sprinkler System — price increase on materials From this time last year — Total escalation $3,600.00 Electrical Work — cost of raw material, transportation costs and overall cost of products such as light fixtures, switch gear, conduit and fittings experienced overall increase of 19%. In addition, there is a worldwide shortage of copper resulting in an increase of over 50% in material costs — Total escalation $89,991.00 Detention Equipment and Hardware — escalation from August 2005 to August 2006 for detention equipment and security electronics averages about 12% per month. Total escalation for the past year is 6% - Total escalation $37,695.00 Total escalation for RFP #008 $333,110.00 RFP. No. 9: Pier foundation bell cave insurance $ 2,250.00 High impact hurricane resistant window and Storefront system $19,852.00 Storm sewer line from detention pond to 23rd Street in lieu of Spencer $0.00 Revision to eliminate structural column at lobby $0.00 Total unanticipated costs for RFP #009 $22,102.00 Total of Escalation Items and Unanticipated Costs $355,212.00 Total Unassigned Contingency $432,907.00 Total Credit <$ 77,695.00> ******This will eliminate the contingency. The contingency is replace by the RFP No. 8 amount of $333,110.00, the RFP No. 9 amount of $22,102.00, and the credit amount of $77,695.00.****** RFP No. 10: Cost Saving Trico Tower <$3,849.00> RFP No. 12: Rain Day Delays - August 6 calendar days RFP No. 14: Rain Day Delays - September 1 calendar days RFP No. 18: CenterPoint Permanent Electrical Service Charges $9,904.00 Total <$137,302.00> Total Rain Delays 28 Calendar Days The original Contract Sum was $ 9,991,758.00 The net change by previously authorized Change Orders 79 $ ,40202.00 The Contract Sum prior to this Change Order was $ 10,071,160.00 The Contract Sum will be decreased by this Change Order in the amount of $ 137,302.00 The new Contract Sum including this Change Order will be $ 9,933,858.00 The Contract Time will be increased by Twenty Eight ( 28 ) days. The date of Substantial Completion as of the date of this Change Order therefore is June 30, 2007* (see attached clarification of Substantial Completion) NOTE: This Change Order does not include changes in the Contract Sum, Contract Time or Guaranteed Maximum Price which have been authorized by Construction Change Directive until the cost and time have been agreed upon by both the Owner and Contractor, in which case a Change Order is executed to supersede the Construction Change Directive. AIA Document G701 W — 2001. Copyright© 1979, 1987, 2000 and 2001 by The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any 2 portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 08:55:39 on 12/06/2006 under Order No.1000227951-1 which expires on 3/16/2007, and is not for resale. User Notes: (3818693001) NOT VALID UNTIL SIGNED BY THE ARCHITECT, CONTRACTOR AND OWNER. Eversole Williams Hale -Mills Construction, Ltd. City of LaPorte ARCHITECT (Firm name) CONTRACTOR (Firm name) OWNER (Firm name) 10119 Kirkhaven Drive, Dallas, Texas 75238 wh BY (Signature) Ms. Deborah Williams (Typed na e) / O DATE 4130 Bellaire Bpfilevard, Suite 210 Houston, Texai 77 25 ADDRESS BY (Signa ur Mr. Dave Palmer (Typed name) 1 0 le DATE LaPorte City Hall, 604 West Fairmont Parkway, LaPorte, Texas 77571 ADDRESS BY (Signa re) Mr. Steve Gillett (Typed name) /-/0 -O i DATE AIA Document G70I Tm — 2001. Copyright m 1979, 1987, 2000 and 2001 by The American Institute of Architects. All rights reserved. WARNING: This Al, Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 08:55:39 on 12/06/2006 under Order No.1000227951_1 which expires on 3/16/2007, and is not for resale. User Notes: (3818693001) Clarification of Substantial Completion Standard Form of Agreement Between Owner and Design Builder -Lump Sum dated November 28, 2o0S, received by Design -Builder on November 29, 200S Article s Contract Time 51 Date of Commencement. The Work shall commence within five (S) days of Design -Builder's receipt of Owner's Notice to Proceed ('Date of Commencement") unless the parties mutually agree otherwise in writing. S.a Substantial Completion and Final Completion S= Substantial Completion of the entire Work shall be achieved no later than Five Hundred and Fifty (uo_) calendar days after the Date of Commencement ("Scheduled Substantial Completion Date"). Substantial Completion will be on June 2, 2oo7, not May, 7, 2oo7 as stated in Change Order No. i, per the calculation of SSo days from November 29, 20oS. Plus 28 weather days, Substantial Completion has changed to June 30, 20o6. I -V- H LE MILLS October 31, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23dStreet La Porte, Texas 77571 Re: City of La Porte Police Department — RFP #2 Dear Steve, In regards to exterior door (195A) being changed to hollow metal in lieu of glass aluminum, there will be a reduction of $1,500.00 in cost. If this meets with your approval, we will add it to the next change order. Sincerely, David Palmer General Partner President of DAP Management, LLC DP/km cc: Leonard Carthon, Huitt-Zollar File FAX NO. Jul. 12 2006 11: 23AM P1 We Mills Atm; Dave Palmer 7-12-2006 Mann Glass ,& mirror Company. 4310 PM Z218 Richmond, Texas 77469 281 238-9981 832-595 2369 faz 1 For City of La Porte Police Dept RFP # 002 To be erected at . PROP Post -it' Fax Note 7671 Date 17h� paOs� / To t�N From - A. 9 Phone # Phone # Fax # Fax # Per plans consisting of 2 FAXED SHEETS Prepared by Unless modified below, for the amount of S 9,633.00, DEDUCT No tas inch Delete 3 — pair of exterior doors #'s 251B , 195B, 134 and add 5" x. 24' vision lites in customer's hollow metal doors . W frzio THIS PROPOSAL IS SUBJECT TO THE FOLLOWING TERMS-AND.C6ND1T10NS 1. The prompt wwmtiou of this work if conttad is awarded us will be subject to delays occasioned by°strike . lock -oafs, fires, cavicrs and other causes beyond our control. 2_ We do not replace breakage or damaged glass unless caused directly or indirectly by our own imployim 3. We do rwt clean any glass or metal starzf=t construction. 4. Corrections of clerical errors prior to acceptance. 5- Worts to be done as soon as possible orwithin a reasonable time. 6. RcvWm if not accepted within 0rirty(30) days af.Der date. 7. A ualural variation in shade which,ii qw is thgpmdwiloa of all structural glass and cathedral glass must be acceptable. K This proposal is based on all work'beidg pirformed'during regular working hours. Extra chrtege will• be iWa for all avualime work. 9_ Subject to the approval of Main Glass & Niimir Cvirrpairy C�cdit office. )_ We assume no responsibility fbr stains or corrosion which may occur on metal construction ariet Iastalhaiori. t. This proposal is subject to revision if, during the Biral detailing of sash, metal consowtion,or alter openings, sizes of glass or raster) ate, changed l3om those Shown on drawings on which this proposal is based. !. Changes or terra work must be evidenced by written• ordr-m. e solicit your ealy acceptance of this proposal, in which 'event we promise to give the work our most c =efulaum ipn. '"'EPTED Main GlanA. Mirror Company ate Denny B-Wnside CONSTRUCTION, LTM September 5, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23rd Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #003 - MODIFIED Steve: In regards to RFP #003 on the referenced project, please review the following list of scope changes previously submitted. Revision per Line Item 18 — ventilation deleted. Modification for Line Item 13. These items have been revised per our review. Cost details for items 19 and 28 are attached Revised pricing per attached revisions $52,426.00 Delete Item #13 (no charge) <10.055.00> Subtotal 42,371.00 Bond (1.26) 677.00 Insurance (1.54) 827.00 Fee (6.7%) 3,654.00 Delete markup as part of contingency wrap up <5,158.00> Total RFP #003 $42,371.00 Should you have any questions, or require additional information, do not hesitate to call. 4130 Bellaire Boulevard, Suite 21 . Houston, Texas 77025 71 .66 .1100 Telephone , 71 .665.4944 Facsimile Regards, David Palmer General Partner President of DAP Management, LLC cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (RFP #003) Attachments Mkin If acceptable, please sign below and fax back. Accepted: Date: City of La. Porte 4130 Bellaire Boulevard, Suite 210 • Houston, Texas 77025 713.665.1100 Telephone • 713, 5,4 44 Facsimile HMC Hale -Mills Construction, Ltd. Scope Changes Added Items 1 Door added between Admin 111 and Chief 118 $730.00 2 Interview 293: pass-thru window added No bullet proof (change to commerical grade window) 3 Training/Classroom 276: all walls writeable /projectionable surface versus one $3,550.00 See Deduct marker board 4 Quartermaster Supply 157: shelving added on all walls FF & E 5 Videotape Storage 264: shelving added on all walls FF & E 6 Patrol Room Supply 168: shelving added on two walls FF & E 7 Viewing Room 191: two windows added $720.00 8 Report Writing 175: four windows added Remove wall or add 1 /2 wall 9 Safety Vestibule 250: added Delete 10 Viewing 223: window with paper pass added $825.00 11 SOP 253 and SOP Raid 252: wall mounted TV/VCR's added No wall mounts 12 Fingerprint 280: small cabinet w/ shelving or drawers added Delete 13 Detention area: shower room added room 246A $10,055.00 4. Vehicle Processing: vehicte lift added electrical and plumbing only No air No change compressor needed 15 Lab 146: there is an additional eye wash and I believe this is where they are Remove to No change putting the hoods they have talked about. evidence room add to lab 16 Blood Vault: one floor drain not originally shown. $950.00 17 There was never any natural gas included for the generator or if any is required at Delete the hoods. 18 Sally port- change security gates to section doors. No Charge 19 Lab- Add electrical power & ventilation for the hoods. $5,348.00 20 Drug Room - Add ventilation with electrical power $8,161.00 Dave to revisit 21 Extra heating and cooling load in the communication (911, EOC, radio & ham) $0.00 No Change rooms that is much more than the 1015 section calls for. 22 Increased Emergency Power coverage area No Charge 23 Add food pass at day room security doors $785.00 24 Add 1080 mechanical lock with DPS and bolt position switch to Drug Vault and Gun vault 25 Add viewing station at room 191 only to service interview rooms 190, 197, 198, & 199. 26 Add electrical circuit and outlet for added refrigerator in Evidence 135 27 Add electrical circuit and outlet for added refrigerator in Evidence 140 28 Additional electrical requirements added for EOC 29 Add wiring cable tray from Radio 121 to Ham Radio 123 30 Increase all drive lanes in Public and Secured parking lots from 25' to 28'. Total No Charge $6,095.00 $397.00 $395.00 $12,925.00 See attached detail $1,490.00 $0.00 No change $52,426.00 i` -�-7 vv, CITY OF LA PORTE POLICE DEPARTMENT ITEM #7 MATERIAL AND LABOR EXTENSION FOR LAB EQUIPMENT 146 Item Name Quantity UNIT UM EXT UNIT UMI EXT. PRICE PRICE LABOR LABOR POLY LINE 200 $7.65 M $1.53 3.5000 M 0.70 2 1/2 GRC CHNL STRAP 30 $159.90 C $47.97 3.0000 C 0.90 318 ROD COUPLING 14 $83.08 C $11.63 9.0000 C 1.26 3/8 THREADED ROD 200 $63.65 C $127.30 4.8000 C 9.60 3/8" FENDER WASHER 56 $5.27 C $2.95 1.5000 C 0.84 3/8" NUT 150 $3.62 C $5.42 1.2000 C 1.80 ZPURLIN 3/8" ROD HANGER 28 $52.45 C $14.69 2.4000 C 0.67 UNI STRUT 1 5/8" W/ SLOTS 20 $315.20 C $63.04 9.3000 C 1.86 PVC GLUE QUART 2 $1,158.49 C $23.17 0.0000 X 0.00 2 1/2 PVC 40 O 170 $99.95 C $169.92 2.8000 C 4.76 TOTAL $467.62 22.39 MATERIAL $467.62 LABOR $828.28 TOTAL MAT. & LBR. $1,295.90 O.H. & P. $194.39 TOTAL $1,490.29 Accurate Air Systems Change Order Date: 6/28/06 Job Name: LaPorte Police Location: LaPorte Job Number: R0085 Job Description: Supply fans, labor and other material necessary to vent fume hood and cabinet furnished and installed by other. This price is based on ducting to a wall louver and using galvanized duct only. Labor Labor W/ Step Description Material Cost Hours Burden Total Labor Fans 725.00 8 32.00 $ 256.00 Ductwork 386.00 24 32.00 $ 768.00 Louver 642.00 6 32.00 $ 192.00 Misc. Material 250.00 0.00 $ - 0.00 $ Sub Total 2,003.00 Total Labor $ 1,216.00 Sales Tax% 0.00% Sales Tax$ 0.00 Total Taxable 2,003.00 Additional Non Taxable Cost Total Taxable $ 2,003.00 Total Non Taxable $ - Total Labor $ 1,216.00 Total Cost $ 3,219.00 % Overhead 12% Sub Total $ 3,605.28 %GM 7% Total Non Taxable 0.00 Change Amount $ 3,858 CITY OF LA PORTE POLICE DEPARTMENT 4TEWI-#& MATERIAL AND LABOR EXTENSION FOR IOC FINISH OUT Item Name Quantity UNIT UM EXT UNIT EXT. PRICE PRICE LABOR LABOR 12 THHN CU SLD BLACK 2,053 $125.02 M $256.67 3.48 7.14 12 THHN CU SLD WHITE 2,053 $125.02 M $256.67 3.48 7.14 12 THHN CU SLD GREEN 2,053 $126.02 M $258.72 3.48E 7.14 12 THHN CU SLD GRN W/STRIPE 1,026 $219.48 M $225.19 3.48 M 3.57 1/2 EMT 330 $30.18 C $99.59 2.61 C 8.61 1/2 EMT CONN S/S 44 $64.53 C $28.39 4.64 C 2.04 1/2 EMT COUP S/S 33 $77.73 C $25.65 2.32 C 0.77 1/2 EMT MINI 11 $20.19 C $2.22 8.70 C 0.96 1/2-3/4 EMT PLN STP 123812M 12 $72.02 C $8.64 2.61 C 0.31 1/2-3/4 EMT STUD STP 812MF 28 $83.84 C $23.48 2.61 C 0.73 3/4 GRC 20 $114.65 C $22.93 3.48 C 0.70 3/4 GRC ELBOW 22 $550.93 C $121.20 23.20 C 5.10 3/4 GRC COUPLING 48 $79.25 C $38.04 9.28 C 4.45 3/4" X 2" NIPPLE GRC 48 $162.86 C $78.17 17.40 C 8,35 3/4 LOCKNUT 92 $10.18 C $9.37 9.28 C 8.54 3/4 BUSH PLASTIC 70 $7.15 C $5.00 9.28 C 6.50 3/4-1/2 RE BUSHING 48 $50.42 C $24.20 9.86 C 4.73 3/4 GRC CHNL STRAP 8 $85.10 C $6.81 1.74 C 0.14 3/16"X3" TOGGLE BOLT 13 $9.99 LCA$1.30 6.38 C 0.83 1/4"X3" TOGGLE BOLT 3 $11.67 C 6.96 C0.21 1/4" X 1 3/4" KWIK BOLT 25 $36.10 C 9.28 C 2.32 10 X 1 1/4" METAL SCREW 96 $4.05 C 8.70 C 8.35 3/8" FENDER WASHER 3 $5.27 C $0.16 1.45 C 0.04 T-BAR HANGER 512HD 2 $287.18 C $5.74 4.64 C 0.09 1 1/2 KINDORF-B905 2 $403.05 C $8.06 9.28 C 0.19 PVC GLUE QUART 1 $1,158A9 C $11.58 0.00 X 0,00 3/4 PVC 40 O 50D $17.57 C $87.83 2.18 C 10.90 3/4 PVC FEMALE ADPT 22 $34.14 C $7.51 9.28 C 2.04 3/8 FLEX STEEL 12 $16.86 C $2.02 2.03 C 0.24 112 FLEX STEEL 22D $22.25 C $48.96 2.32 C 5.10 3/8 FLEX SQZ CONN,DC 4 $149.56 C $5.98 5.80 C 0.23 1/2 FLEX SQZ CONN,DC 46 $151.63 C $69.75 6.96 C 3.20 YELLOW WIRE NUT 76 $47.30 M $3.59 1.45 C 1,10 RED WIRE NUT 181 $61.85 M $11.19 1.74 C 3,15 DRILL 3/4" HOLE THRU FLOOR 48 $0.00 X $0.00 8.99 C 4.32 1 G S8 RECP PLATE 8 $0.60 E $4.78 5.80 C 0.46 20A DPLX RECEP, SPEC 12 $4.29 E $51,52 17.40 C 2.09 20A DPLX IG RECEP, SPEC 40 $13.02 E $520.80 20.30 C 8.12 4/S BOX 1-1/2" D SPL EW 10 $121.19 C $12.12 17.40 C 1.74 4/S BOX W/BRKT 52151-EF-SSX 14 $122.19 C $17.11 18.40 C 2.58 4/S BLANK COVER 10 $55.61 C $5.56 4.64 C 0.46 4/S 1G P RING 5/8" RISE 16 $141.75 C $22.68 8.70 C 1,39 4 11 /16 BOX 2 1 /8"D 1/2-3/4 E 6 $411.46 C $24.69 23.20 C 1.39 4 11/16 BLANK COVER 6 $296.62 C $17.80 4.64 C 0.28 6"X6"X4" NM1 S/C JBOX 4 $5.12 E $20.48 0.46 E 1.84 PEDESTAL HOUSING 48 $30.45 E $1,461.60 20.30 C 9.74 DPLX RCPT PLATE 44 $10.65 E $468.60 6.96 C 3.06 Page 1 of 2 DECORA DPLX RCPT PLATE 24 $10.65 E $255.60 6.96 C 1.6? BACK PLATE 28 $10.65 E $298.20 5.80 C 1.62 3/4 KNOCKOUT 10 $0.00 X $0.00 30.74 C 3.07 GROUND RAISED FLOOR 1 $85,00 E $85.00 8.00 E 8.00 3/4X1/2 RED WASH 40 $14.54 C $5.82 2.00 C 0.80 TOTAL $5,040.23 167.59 MATERIAL $5,040.23 LABOR $6,199.07 TOTAL MAT. & LBR. $11,239.30 O.H. & P. $1,685.90 TOTAL $12,925.20 Page 2 of 2 PROPOSAL FOR ELECTRICAL WORK A-1 ELECTRIC Commercial - Industrial Covering the Southwest Drawer 3340 Amarillo, Texas 79116-3340 (806)372-5665 * Fax: (806)373-0707 SUBMITTED TO: JOB NAME: Hale -Mills Construction City of La Porte Police Department STREET: STREET: 4130 Bellaire Blvd. Suite 210 CITY: STATE: CITY: STATE: Houston Texas 77025 JlLa Porte Texas PHONE NO.. FAX NO.: DATE: 713-655-1100 713-665-4944 104/18/06 We herebv aronose to furnish all labor and material necessary for the electrical installation in accordance with the following specifications: --- -- --- - - -- - - E -----------------------------R-----INITIAL------DESI-----GN D------ -EV- EL--O -- - --------------------- CHANGES THAT HAVE OCCURRED AFTPMENT. PRICING FOR THE FOLLOWING IS BASED ON A-1 ELECTRIC DESIGN DRAWINGS ONLY: (1). Add TV Outlet (Conduit and box only, stubbed to ceiling space) and duplex receptacle outlet in Staff Conference 116. (2). Add conduit, wiring and device for power to Vehicle Lift in Vehicle Processing 143. (3). Add conduit, wiring and device for refrigerator on dedicated circuit in Evidence ID 135. (4. Add conduit, wiring and device for refrigerator on dedicated circuit in Evidence 140. (5). Add TV Outlets (Conduit and box only, stubbed to ceiling space) and duplex receptacles outlets in SOP 252 and SOP 253. (6). Emergency Operations Center 122 finish -out based on information received from City of La Porte. (7). Furnish power to equipment in Lab 146 per information received from City of La Porte. (8). Furnish cable tray from Radio Rm 121 to Ham Radio Rm 123 for antenna cable. ADD: 200.00 ADD: $678.00 ADD: $397.00 ADD: $395.00 ADD: 431.00 ADD: $12,925.00 ADD: $3,211.00 ADD: $1,490.00 TOTAL FOR ABOVE The price for the work described above will be: $19,727.00 This proposal is void if not accepted in writing within 30 days after date. Date 2006 Authorizing Signature (OWNER OR GENERAL CONTRACTOR SIGNS HERE) hereby agree to furnish labor and materials - complete in accordance with the above specifications, at above stated price. kuthorized Signature: Darrel Bryant Date April 18, 2006 CONSTRUCTION, LTO. September 5, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23 d Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #004 - Modified Steve: In regards to RFP #004 on the referenced project, please review the following: Total of Value Engineering to date per attached ($106,533.00) Total RFP #004 ($106,533.00) Should you have any questions, or require additional information, do not hesitate to call. Regards, 07 � David Palmer General Partner President of DAP Management, LLC cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (RFP #004) Attachments 4130 Bellaire Boulevard, Suite 210 * Houston, Texas 77025 713.665.1100 Telephone - 713.665.4944 Facsimile DP/km If acceptable, please sign below and fax back. Accepted: City of La Porte Date: Value Engineering to Date October 2, 2oo6 I. Delete 20 parking spaces on the east side of the secured parking lot SI0'8()O.O0 2. Delete raised platform in Training Room S1.950.00 3. Delete Violent cells and use as holding S I 7.800.00' 4. Delete day room window with film S920.00 S. Additional Glass around intake counter S1,728.00` 6. Delete EOC break room cabinet, sink, and appliance hook up ( S3,360.001 7. Change Four each two man cells to two each four man cells in Holding I S3,500.00 8. Change lay -in in -direct light fixture to standard direct lighting with Acrylic A-I2-.I25 lenses i SI0.369.00? 9. Change mechanical chillers to scroll type VS screw type r SI I,606.001 I0. Delete ten (I0) fixed cameras: Deduct one DVR-no credit! 1 S19I 5.00) II. Delete floor drains in Sally Port and holding cells. (Keep Detox Drains) (No drain in Sally Port) (Does it S8.100.00 include the oil/sand separator) (Remove drains in cells only one drain in each day room) I2. Reception/Processing - delete I6' of cabinet and bench with cuff loops (Deborah to make cabinet list) (all S3.900.00) shelving units (as built-ins) change to commerical except for custodial workroom) I3. File 112 - Remove vertical files (no credit - FF&E) I4. Crime Analyst - delete 20' cabinets i S4.I00.00) IS. CID Storage - 3I' cabinets ( S6,3j5.001 I6. Supply/File/Storage - Lab I46 - Delete I0' shelves S1,950.00) I7. Acoustical - change reveal edge ceiling tile to square the in al areas excluding EOC (S6,100.00) I8. Raised Access Flooring - change from VCT to HPL (high pressure laminate) in rooms I06, I2I, I22 and I23 S2,280.00 ) I9. Deletion of masonry wainscot at north and east exterior elevation per approved drawings including caststone, (S8,800.00) water tavle, dampproofing, and flashing (800 sf @ $I I.00) Total Value Engineering to date I ($IO6,S33.00) U/4/aoo6 Hale -Mills Construction, Ltd. H LE MILLS -01-12-PT ME r. r August 1, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23rd Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #005 — Rain Delay Days for June Steve: We hereby submit the following as lost days due to inclement weather for the month of June 2006. Tuesday May 30, 2006 — Rain Out Wednesday May 31, 2004 — Rain Out Thursday June 1, 2006 — Rain Out Friday, June 2, 2006 — Rain Out This is a total of four (4) working days, which calculates to five (5) calendar days. The contract time will be increased by five (5) calendar days. The date of Substantial Completion prior to this RFP is May 20, 2007. The revised date of Substantial Completion is May 25, 2007. Should you have any questions, or require additional information, do not hesitate to call. Regards, David Palmer General Partner President of DAP Management, LLC cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (RFP #005) DP/lan 4130 Bellaire Boulevard, Suite 210 ° Houston, Texas 77025 713.665.1100 Telephone ° 713.665.4944 Facsimile If acceptable, please sign below and fax back. Accepted: Date: City of La Porte 4130 Bellaire Boulevard, Suite 210 * Houston, Texas 77025 713.665.1100 Telephone - 713.665.4944 Facsimile CONSTRUCTION, LTM August 1, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23' Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #006 — Rain Delay Days for July Steve: We hereby submit the following as lost days due to inclement weather for the month of July 2006. Monday, July 3, 2006 — Rain Out Wednesday, July 5, 2006 — Rain Out Thursday, July 6, 2006 — Rain Out Friday, July 7, 200 — Rain Out Tuesday, July 18, 2006 — Rain Out Wednesday, July 19, 2006 — Mud Thursday, July 20, 2006 — Mud Monday, July 24, 2006 — Rain Out Tuesday, July 25, 2006 — Rain Out Wednesday, July 26, 2006 — Rain Out Thursday, July 27, 2006 — Mud Friday, July 28, 2006 — Mud This is a total of twelve (12) working days, which calculates to sixteen (16) calendar days. The contract time will be increased by sixteen (16) calendar days. The date of Substantial Completion prior to this RFP is May 25, 2007. The revised date of Substantial Completion is June 6, 2007. Should you have any questions, or require additional information, do not hesitate to call. 41.30 Bellaire Boulevard, Suite 210 • Houston, Texas 77025 71.3.665.1100 Telephone , 713.665.494� Facsimile Regards, David Palmer General Partner President of DAP Management, LLC cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (RFP #006) DP/km If acceptable, please sign below and fax back. Accepted: Date: City of La Porte 4130 Bellaire Boulevard, Suite 210 • Houston, Texas 77025 713.665-1100 Telephone - 713.665.4944 Facsimile CONST'Rucnor'j' LTD. October 3, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23rd Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #008 — Escalation Items Steve: In regards to RFP #008 on the referenced project, please review the following for escalation items: Earthwork and Site Utilities — prices for pipe, inlets, cement sand, select fill, fuel and maintenance — increases ranged from 3% to 17% with a weighted average of 10% Total escalation $34,361.00 Concrete — from August 2005, reinforcing steel has Increased by $2,875.00 and concrete has increased by $17,995 - Total escalation $20,870.00 Hollow Core Plank — price increase is approximately 14% from a year ago — Total escalation $7,390.00 Masonry — price increase of approximately 12% on Materials has been experienced in the last year Total escalation $12,388.00 Pre -Engineered Building Structure: 1) Nov 2005 experienced 6% increase in material 2) Apr 2006 experienced 3.5% increase in material 3) June 2006 experienced 3.5% increase in material 4) Jul 2006 experienced 6% increase in material Total escalation $70,093.00 4130 Bellaire Boulevard, Suite 210 ° Houston, Texas 77025 71 .665.1100 Telephone . 71 .665.4 44 Facsimile Glass and Storefront — glass cost has increased approximately 25% and aluminum has increased approximately 20% since August 2005 — Total escalation $11,227.00 Drywall — due to the increase of gypboard, accessories and Metal materials from August 2005 — Total escalation $16,996.00 Acoustical — price increase in materials approximately 9% from this time a year ago — Total escalation $7,100.00 Flooring — Carpet, VCT & Resilient Base — price increase Of material is 5% from August 2005 $7,228.00 Painting — price increase of material is 11 % from Aug 2005 Total escalation $2,500.00 Raised Access Flooring — price increase from the manufacture Since July 2005 is 17% - Total escalation $6,400.00 Plumbing — price increase of approximately 5% on material Total escalation $5,272.00 Fire Protection — Sprinkler System — price increase on materials From this time last year — Total escalation $3,600.00 Electrical Work — cost of raw material, transportation costs and overall cost of products such as light fixtures, switch gear, conduit and fittings experienced overall increase of 19%. In addition, there is a worldwide shortage of copper resulting in an increase of over 50% in material costs — Total escalation $89,991.00 Detention Equipment and Hardware — escalation from August 2005 to August 2006 for detention equipment and security electronics averages about 12% per month. Total escalation for the past year is 6% - Total escalation $37,695.00 Total escalation for RFP #008 $333,110.00 4130 Bellaire Boulevard, Suite 21.0 x Houston, Texas 77025 71.3.66 .1.1.00 Telephone ` 713.665.4 44 Facsimile Should you have any questions, or require additional information, do not hesitate to call. Regards, 0 '11444— David Palmer General Partner President of DAP Management, LLC cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (RFP 4008) Attachments DP/km If acceptable, please sign below and fax back. Accepted: Date: City of La Porte 4130 Bellaire Boulevard, Suite 210 , Houston, Texas 77025 713.665.1100 Telephone - 713.665.4944 Facsimile Glass and Storefront — glass cost has increased approximately 25% and aluminum has increased approximately 20% since August 2005 — Total escalation $11,227.00 Drywall — due to the increase of gypboard, accessories and Metal materials from August 2005 — Total escalation $16,996.00 Acoustical — price increase in materials approximately 9% from this time a year ago — Total escalation $7,100.00 Flooring — Carpet, VCT & Resilient Base — price increase Of material is 5% from August 2005 $7,228.00 Painting — price increase of material is 11 % from Aug 2005 Total escalation $2,500.00 Raised Access Flooring — price increase from the manufacture Since July 2005 is 17% - Total escalation $6,400.00 Plumbing — price increase of approximately 5 % on material Total escalation $5,272.00 Fire Protection — Sprinkler System — price increase on materials From this time last year — Total escalation $3,600.00 Electrical Work — cost of raw material, transportation costs and overall cost of products such as light fixtures, switch gear, conduit and fittings experienced overall increase of 19%. In addition, there is a worldwide shortage of copper resulting in an increase of over 50% in material costs — Total escalation $89,991.00 Detention Equipment and Hardware — escalation from August 2005 to August 2006 for detention equipment and security electronics averages about 12% per month. Total escalation for the past year is 6% - Total escalation $37,695.00 Total escalation for RFP #008 $333,110.00 4130 Bellaire Boulevard, Suite 210 x Houston, Texas 77025 713.665.1100 Telephone ° 713.665.4944 Facsimile CITY OF LA PORTE POLICE DEPARTMENT ESCALATION ITEMS DETAIL SUBMITTED REVISED 8/14/2006 10/3/2006 1 Earthwork and Site Utilities 21,800.00 34,361.00 12,561.00 2 Concrete 20,870.00 20,870.00 - 3 Hollow Core Plank 7,390.00 7,390.00 - 4 Masonry 12,389.00 12,388.00 (1.00) 5 Pre Engineered Building Structure 70,093.00 70,093.00 - 6 Glass and Storefront 13,427.00 11,227.00 (2,200.00) 7 Drywall 17,000.00 16,996.00 (4.00) 8 Acoustical 10,000.00 7,100.00 (2,900.00) 9 Flooring 6,768.00 7,228.00 460.00 10 Painting 2,500.00 2,500.00 - 11 Raised Access Flooring 6,600.00 6,400.00 (200.00) 12 Plumbing 3,200.00 5.272.00 2,072.00 13 Fire Protection - Sprinkler System 3,600.00 3,600.00 - 14 Electrical Work 90,840.00 89,991.00 (849.00) 15 Detention Equipment and Hardware 46,796.00 37,695.00 (9,101.00) 333,273.00 333,111.00 (162.00) CON'N' TnUCTIOFVI, L=,- November 2, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23" Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #009 — Unanticipated Costs Steve: In regards to RFP #009 on the referenced project, please review the following for unanticipated costs: Pier foundation bell cave in $2,250.00 High impact hurricane resistant window and Storefront system $19,852.00 Storm sewer line from detention pond to 23rd Street in lieu of Spencer 0.00 Revision to eliminate structural column at lobby 0.00 Total unanticipated costs for RFP #009 $22,102.00 Should you have any questions, or require additional information, do not hesitate to call. Regards, David Palmer General Partner President of DAP Management, LLC 110Y.S. I I lot I �Ko IOM I J 11112 al B ni M Ka E N WOO MA S ITA cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HNIC File (RYP #009) Attachments DP/km If acceptable, please sign below and fax back. Accepted: City of La. Porte Date: �AIMUNIORNWOMKQ i H LE MILLS August 30, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23rd Street La Porte, Texas 77571 Re: City of La Porte Police Department RFP #010 Dear Steve, This letter is to confirm the cost savings of obtaining the Radio Tower from Trico Tower Services. Change Order #1 incorporated the Radio Tower into our contract. Sabre Communication was originally the manufacturer and installer of the tower. Since obtaining your approval to use Trico we have generated a savings of $3,849.00. The cost comparison is below for your review. I suggest we add this to the list of Value Engineering. Please advise. Description Sabre Trico Tower Materials $14,887.00 $14,842.00 Tower Erection $14,965.00 $13,150.00 Freight $ 3,639.00 $ 1,650.00 Totals $33,491.00 $29,642.00 Total deduct for RFP #010 j< $ 3,849.007> Sincerely, David Palmer General Partner President of DAP Management, LLC DP/km cc: File (#010) 4136 Bellaire Boulevard, Suite 21 , Houston, Texas 77025 713.665.1100 Telephone • 713.665.4944 Facsimile If acceptable, please sign below and fax back. Accepted: Date: City of La Porte 4130 Bellaire Boulevard, Suite 210 * Houston, Texas 77025 713.665A 100 Telephone • 713.665.4944 Facsimile H LE MILLS 'Of-j0i=U9=M■ s September 5, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23rd Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #012 — Rain Delay Days for August Steve: We hereby submit the following as lost days due to inclement weather for the month of August 2006. Monday, August 7, 2006 — Rain Out Wednesday, August 23, 2006 — Rain Out Thursday, August 24, 2006 — Mud Monday, August 28, 200 — Mud This is a total of four (4) working days, which calculates to six (6) calendar days. The contract time will be increased by six (6) calendar days. The date of Substantial Completion prior to this RFP is June 6, 2007. The revised date of Substantial Completion is June 12, 2007. Should you have any questions, or require additional information, do not hesitate to call. Regards, - David Palmer General Partner President of DAP Management, LLC cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (RFP #006) 4130 Bellaire Boulevard, Suite 210 • Mauston, "Texas 77025 713.665.1100 Telephone • 713.665.4944 Facsimile DWI= If acceptable, please sign below and fax back. Accepted: Date: City of La Porte 4130 Bellaire Boulevard, Suite 210 - Houston, Texas 77025 713.665.1100 Telephone - 713.665.4944 Facsimile "'M CONSTRUCTION, LTD. October 2, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23ra Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #014 — Rain Delay Days for September Steve: We hereby submit the following as lost days due to inclement weather for the month of September 2006. Monday, September 18, 2006 — Rain Out This is a total of one (1) working day, which calculates to one (1) calendar day. The contract time will be increased by one (1) calendar day. The date of Substantial Completion prior to this RFP is June 12, 2007. The revised date of Substantial Completion is June 13, 2007. Should you have any questions, or require additional information, do not hesitate to call. Regards, p ' David Palmer General Partner President of DAP Management, LLC cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (RFP #014) 4130 Bellaire Boulevard, Suite 210 ° Houston, Texas 77025 713.665.1100 Telephone • 713.665.4944 Facsimile If acceptable, please sign below and fax back. Accepted: Date: City of La Porte 4130 Bellaire Boulevard, Suite 210 • Houston, Texas 77025 713.665.1100 Telephone • 713,665.4944 Facsimile CONSTRUCTION, LTm December 4, 2006 Steve Gillett Director of Public Works City of La Porte 2963 North 23ra Street LaPorte, Texas 77571 Re: City of La Porte Police Department RFP #018 Steve: In regards to RFP #018 on the referenced project, please review the following: CenterPoint permanent electrical service charges: Transformer concrete pad $1,150.00 A-1 Electric to pad mount transformer primary duct bank $1,377.00 CenterPoint cost of transformer 6,500.00 Subtotal 9,027.00* Bond (1.26) 114.00 Insurance (1.54) 141.00 Fee (6.7%) 622.00 Total RFP #018 $9,904.00 * Excludes bollards Should you have any questions, or require additional information, do not hesitate to call. Regards, David Palmer General Partner President of DAP Management, LLC 4130 Bellaire Boulevard, Suite 210 • Houston, Texas 77025 713.665.1100 Telephone • 713.665.4944 Facsimile cc: Leonard Carthon, Huitt-Zollar Tommy Bourgeois, HMC File (R.FP #0 18) Attachments "i If acceptable, please sign below and fax back. Accepted: Date: City of La Porte 4130 Bellaire Boulevard, Suite 210 • Houston, Texas 77025 713.665. 1100 Telephone - 713,665.4944 Facsimile www. rasconcrere.c Fax Transmittal Date: 11128106 To: Ruben Gonzalez Hale Mills Construction Company 4130 Bellaire Blvd., Suite 210 Houston, Tit 77026 Fax 713-866 49" Re: Le Parts Police DspL RCO # 2 Transformer Pad TAS Commercial Concrete Construction, L.P. is pleased to submit the following cost proposal. The proposed cost break down Is as follows: Item Description Total No. RCO 9 2 .1 Install transformer pad 8x8 per detail $ 1,150 'Total 41 1,180 If you need additional Information or wish to discuss this proposal In detail please do not hesitate to call. Sincerely, TAS Commercial Concrete Construction, L.P. Project Manager xc: file TAS Commercial Concrete Construction. i..P. 20105 K?3rt Rtat »:mg, Te,r.ae 772-r3E a PH., 231.35D,2932 ■ FAX_ 48ZO Cash Rood Dallas, 7exa. 7S2=7 a PH; 364.903.9950 a -FA':. 214.905.9n9I T 0 0 / T 0 0 ' d /.gWnt 77.r4xlntnl rTWTI1u4T.TT.Tmar ADDITIONAL WORK AUTHORIZATION A-1 ELECTRIC Commercial - Industrial Covering the Southwest Drawer 3340 Amarillo, Texas 79116-3340 (806)372-5665 * Fax: (806)373-0707 SUBMITTED TO: PHONE: DATE: HMC ATTN Ruben Gonzalez 11/3/2006 STREET JOB NAME 4130 Bellaire Blvd. Suite 210 La porte Police Dept. CITY STATE STREET Houston TX EXISTING CONTRACT NO. DATE OF EXISTING CONTRACT CITY STATE LaPorte 1TX You are hereby authorized to perform the following_ specifically described additional work: ---------------- - ----- -------------------- Includes: Labor and Material for Pad Mount Transformer Primary Duct Bank Excludes: All Concrete and Rebar for Utility Company Primary Duct Bank This Price is with the utilization of exsiting duct bank. ADDITIONAL CHARGE FOR ABOVE WORK IS: $1,377.00 Above additional work to be performed under same conditions as specified in original contract unless otherwise stipulated. Date 2006 Authorizing Signature (OWNER OR GENERAL CONTRACTOR SIGNS HERE) We hereby agree to furnish labor and materials - complete in accordance with the above specifications, at above stated price. ,-\uthorized Signature: Chris Ayl eswo rth Date November 3, 2006 THIS IS CHANGE ORDER NO. NOTE: This revision becomes part of, and in conformance with, the existing contract. Page 1 of 2 Ruben Gonzalez From: Slater, Chad X. [Chad.Slater@centerpointenergy.com] Sent: Tuesday, November 21, 2006 8:16 AM To: ruben@hale-mills.com Subject: FW: 3001 N 23RD ST - LA PORTE POLICE STATION From: Slater, Chad X. Sent: Thursday, November 09, 2006 8:47 AM To: 'Ruben Gonzalez' Subject: RE: 3001 N 23RD ST - LA PORTE POLICE STATION Ruben, The estimated cost for the underground facilities should not exceed $6,500. The placement is having the transformer 150' from the terminal pole. This includes the 300 WA transformer, 1/0 concentric cable. We do not perform the civil part of the work. If you have any questions feel free to contact me. Thanks, Chad Slater From: Ruben Gonzalez [mailto:ruben@hale-mills.com] ent: Monday, October 30, 2006 4:26 PM To. d X. Subject: RE: 3 PORTE POLICE STATION 27,662 sf -----Original Message ----- From: Slater, Chad X. [mailto:Chad.Slater@centerpointenergy.com] Sent: Friday, October 27, 2006 4:21 PM To: RUBEN@HALE-MILLS.COM Subject: RE: 3001 N 23RD ST - LA PORTE POLICE STATION How big is that building? Square Feet From: Maxwell, Michael - Baytown D. Sent: Thursday, October 05, 2006 4:28 PM To: 'RUBEN@HALE-MILLS.COM'; 'Chris Aylesworth' Cc: Slater, Chad X. Subject: 3001 N 23RD ST - LA PORTE POLICE STATION Gentlemen, The Major Underground representative for CenterPoint that is working on your estimate for the new police station is Chad Slater (713-207-6167). He can answer your questions about costs. I will be relocating to 12/4/2006 Page 2 of 2 the Galveston service center on October 231d. Once t know who will be handling my area, 1 will get you in contact with them. Thanks. MDM 281-425-7317 12/4/2006 D B I A DESIGN -BUILD INSTITUTE OF ANFNIFA Tuesday, October 18, 2005 VIA E--MAIL original to follow VIA UNITED STATES POSTAL SERVICE The City of La Porte, Texas Mr. Steve Gillett Director of Public Works 2963 North 23rd Street La Porte, Texas 77571 4130 Bellaire Blvd, Suite 210 Housion, Texas 77025 713-665-1100 FAX 713-665-4944 H LE MILD Re: Please see the following breakdown for the requested premium to increase the building's wind load from 120 mph, to 150 mph. Increase in structural framing = $ 80,863 Increase thickness of roof decking = $ 4,807 Additional connection welds = $ 10,515 Additional reinforcing steel at tilt -up panels $ 12,383 Change in roofing system and increased strength$134,270 Punched openings (Windows) _ $ 8,796 Curtain wall glazing system = $ 20,809 Mechanical changes = $ 25,000 Total $297,443 * Mechanical changes are necessitated by moving exhaust fans and vents to discharge through louvered openings in the exterior wall versus the roof. This requires additional ducting, louvers and fans. Please note that this increase would be for additional wind loading only. Roof changes include changing the roofing system to a modified bitumen system in lieu EPDM or TPO. This does not make any provision for storm surge, flooding, impact of foreign objects or raising the building elevation. Furthermore, this is for the building only. No provisions have been made for site items, such as fencing, flag poles or light poles. If you have any questions, feel free to call me. Sincerely, .John C. Taylor Senior Estimator HALE -MILLS CONSTRUCTION TEAM Your Team of Choice D B I A DESIGN -BUILD INSTITUTE OF AMERKA Standard Form of Agreement Between Owner and Design -Builder - Lump Sum This document has important legal consequences. Consultation with an attorney is recommended with respect to its completion or modification. This AGREEMENT is made as of the Z0-dayof ad e-w a. in the year of 2005, by and between the following parties, for services in connection with the Project identified below. OWNER: The City of La Porte, Texas 604 West Fairmont Parkway La Porte, Texas 77571 DESIGN -BUILDER: Hale -Mills Construction, Ltd. 4130 Bellaire Boulevard, Suite 210 Houston, Texas 77024-1044 PROJECT: La Porte Police Department Building 3001 North 23rd Street La Porte, Texas 77571 Project No. CLP-05-904 In consideration of the mutual covenants and obligations contained herein, Owner and Design -Builder agree as set forth herein. DBIA Document No. 525 - Standard Form of Agreement Page 1 Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America Article 1 Scope of Work 1.1 Design -Builder shall perform all design and construction services, and provide all material, equipment, tools and labor, necessary to complete the Work described in and reasonably inferable from the Contract Documents. Article 2 Contract Documents 2.1 The Contract Documents are comprised of the following: 1. All written modifications, amendments and change orders to this Agreement issued in accordance with DBIA Document No. 535, Standard Form of General Conditions of Contract Between Owner and Design -Builder (1998 Edition) ("General Conditions of Contract"); 2. This Agreement, including all exhibits and attachments, executed by Owner and Design -Builder; 3. Written Supplementary Conditions, if any, to the General Conditions of Contract; 4. The General Conditions of Contract; 5. Construction Documents prepared and approved in accordance with Section 2.4 of the General Conditions of Contract; 6. Design -Builder's Deviation List, if any, contained in Design -Builder's Proposal, which shall specifically identify any and all deviations from Owner's Project Criteria; (see Article 2.1.7 below) 7. Owner's Project Criteria; 8. Design -Builder's Proposal, except for the Deviation List, submitted in response to Owner's Project Criteria; and 9. The following other documents, if any: Page 2 DBIA Document No. 525 - Standard Form of Agreement Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America Article 3 Interpretation and Intent 3.1 The Contract Documents are intended to permit the parties to complete the Work and all obligations required by the Contract Documents within the Contract Time(s) for the Contract Price. The Contract Documents are intended to be complementary and interpreted in harmony so as to avoid conflict, with words and phrases interpreted in a manner consistent with construction and design industry standards. In the event of any inconsistency, conflict, or ambiguity between or among the Contract Documents, the Contract Documents shall take precedence in the order in which they are listed in Section 2.1 hereof. 3.2 Terms, words and phrases used in the Contract Documents, including this Agreement, shall have the meanings given them in the General Conditions of Contract. 3.3 The Contract Documents form the entire agreement between Owner and Design - Builder and by incorporation herein are as fully binding on the parties as if repeated herein. No oral representations or other agreements have been made by the parties except as specifically stated in the Contract Documents. Article 4 Ownership of Work Product 4.1 Work Product. All drawings, specifications and other documents and electronic data furnished by Design -Builder to Owner under this Agreement ("Work Product") are deemed to be instruments of service and Design -Builder shall retain the ownership and property interests therein, including the copyrights thereto. 4.2 Owner's Limited License Upon Payment in Full. Upon Owner's payment in full for all Work performed under the Contract Documents, Design -Builder shall grant Owner a limited license to use the Work Product in connection with Owner's occupancy of the Project, conditioned on Owner's express understanding that its use of the Work Product is at Owner's sole risk and without liability or legal exposure to Design -Builder or anyone working by or through Design -Builder, including Design Consultants of any tier (collectively the "Indemnified Parties"). 4.3 Owner's Limited License Upon Owner's Termination for Convenience or Design -Builder's Election to Terminate. If Owner terminates the Project for its convenience as set forth in Article 8 hereof, or if Design -Builder elects to terminate this Agreement in accordance with Section 11.4 of the General Conditions of DBIA Document No. 525 - Standard Form of Agreement Page 3 Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America Contract, Design -Builder shall, upon Owner's payment in full of the amounts due Design -Builder under the Contract Documents, grant Owner a limited license to use the Work Product to complete the Project and subsequently occupy the Project, conditioned on the following: 1. Use of the Work Product is at Owner's sole risk without liability or legal exposure to any Indemnified Party; and 2. Owner agrees to pay Design -Builder the additional sum of One Hundred Fifty Thousand Dollars ($150,000.00) as compensation for the right to use the Work Product in accordance with this Article 4 if Owner resumes the Project through its employees, agents, or third parties. 4.4 Owner's Limited License Upon Design -Builder's Default. If this Agreement is terminated due to Design -Builder's default pursuant to Section 11.2 of the General Conditions of Contract and (i) it is determined that Design -Builder was in default and (ii) Owner has fully satisfied all of its obligations under the Contract Documents, Design -Builder shall grant Owner a limited license to use the Work Product in connection with Owner's completion and occupancy of the Project. This limited license is conditioned on Owner's express understanding that its use of the Work Product is at Owner's sole risk and without liability or legal exposure to any Indemnified Party. 4.5 Owner's Indemnification for Use of Work Product. If Owner uses the Work Product under any of the circumstances identified in this Article 4, Owner shall defend, indemnify and hold harmless the Indemnified Parties from and against any and all claims, damages, liabilities, losses and expenses, including attorneys' fees, arising out of or resulting from the use of the Work Product. Article 5 Contract Time 5.1 Date of Commencement. The Work shall commence within five (5) days of Design -Builder's receipt of Owner's Notice to Proceed ("Date of Commencement") unless the parties mutually agree otherwise in writing. 5.2 Substantial Completion and Final Completion 5.2.1 Substantial Completion of the entire Work shall be achieved no later than Five Hundred and Fifty (550) calendar days after the Date of Commencement ("Scheduled Substantial Completion Date"). 5.2.2 Interim milestones and/or Substantial Completion of identified portions of the Work shall be achieved as follows:(I ... t any interim milestonesfor portions ofthe Work with different scheduled datesfor Page 4 DBIA Document No. 525 - Standard Form of Agreement Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America Substantial Completion) 5.2.3 Final Completion of the Work or identified portions of the Work shall be achieved as expeditiously as reasonably practicable. 5.2.4 All of the dates set forth in this Article 5 ("Contract Time(s)") shall be subject to adjustment in accordance with the General Conditions of Contract. 5.3 Time is of the Essence. Owner and Design -Builder mutually agree that time is of the essence with respect to the dates and times set forth in the Contract Documents. 5.4 Liquidated Damages. Design -Builder understands that if Substantial Completion is not attained by the Scheduled Substantial Completion Date, Owner will suffer damages which are difficult to determine and accurately specify. Design -Builder agrees that if Substantial Completion is not attained the Scheduled Substantial Completion Date (the "LD Date"), Designer -Builder shall pay Owner One Thousand Five Hundred Dollars ($1,500.00) as liquidated damages for each day that Substantial Completion extends beyond the LD Date. The liquidated damages provided herein shall be in lieu of all liability for any and all extra costs, losses, expenses, claims, penalties and any other damages, whether special or consequential, and of whatsoever nature incurred by Owner which are occasioned by any delay in achieving Substantial Completion.(/fliquidateddamages are applicable toany dates set forth in Section 5.2.2 hereof, this Section 5.4 will need to be modified accordingly) Article 6 Contract Price 6.1 Contract Price. Owner shall pay Design -Builder in accordance with Article 6 of the General Conditions of Contract the sum of Nine Million Nine Hundred Ninety One Thousand Seven Hundred Fifty Eiqht Dollars ($9.991,758.00) ("Contract Price"), subject to adjustments made in accordance with the General Conditions of Contract. Unless otherwise provided in the Contract Documents, the Contract Price is deemed to include all sales, use, consumer and other taxes mandated by applicable Legal Requirements. Lump Sum $9,341,758.00 Allowance for Furniture, Fixtures, and Equipment $650,000.00 6.2 Markups for Changes. If the Contract Price requires an adjustment due to changes in the Work, and the cost of such changes is determined under Sections 9.4.1.3 or 9.4.1.4 of the General Conditions of Contract, the following markups shall be allowed on such changes: (Insert applicable markups) Mark-up on changes to be 6% above direct cost for the change on adds and 0% mark-up above direct cost on deducts. DBIA Document No. 525 - Standard Form of Agreement Page 5 Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America Article 7 Procedure for Payment 7.1 Progress Payments 7.1.1 Design -Builder shall submit to Owner on the first (1 St) day of each month, beginning with the first month after the Date of Commencement, Design -Builder's Application for Payment in accordance with Article 6 of the General Conditions of Contract. 7.1.2 Owner shall make payment within ten (10) days after Owner's receipt of each properly submitted and accurate Application for Payment in accordance with Article 6 of the General Conditions of Contract, but in each case less the total of payments previously made, and less amounts properly withheld under Section 6.3 of the General Conditions of Contract. 7.2 Retainage on Progress Payments 7.2.1 Owner will retain five percent (5%) of each Application for Payment. Owner will also reasonably consider reducing retainage for Subcontractors completing their work early in the Project. 7.2.2 Upon Substantial Completion of the entire Work or, if applicable, any portion of the Work, pursuant to Section 6.6 of the General Conditions of Contract, Owner shall release to Design -Builder all retained amounts relating, as applicable, to the entire Work or completed portion of the Work, less an amount equal to the reasonable value of all remaining or incomplete items of Work as noted in the Certificate of Substantial Completion. 7.3 Final Payment. Design -Builder shall submit its Final Application for Payment to Owner in accordance with Section 6.7 of the General Conditions of Contract. Owner shall make payment on Design -Builder's properly submitted and accurate Final Application for Payment within thirty (30) days after Owner's receipt of the Final Application for Payment, provided that Design -Builder has satisfied the requirements for final payment set forth in Section 6.7.2 of the General Conditions of Contract. 7.4 Interest. Payments due and unpaid by Owner to Design -Builder, whether progress payments or final payment, shall bear interest commencing five (5) days after payment is due at the rate of six percent &%). 7.5 Record Keeping and Finance Controls. With respect to changes in the Work performed on a cost basis by Design -Builder pursuant to the Contract Documents, Design -Builder shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management, using accounting and control Page 6 DBIA Document No. 525 - Standard Form of Agreement Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America systems in accordance with generally accepted accounting principles and as may be provided in the Contract Documents. During the performance of the Work and for a period of three (3) years after Final Payment, Owner and Owner's accountants shall be afforded access from time to time, upon reasonable notice, to Design - Builder's records, books, correspondence, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to changes in the Work performed on a cost basis in accordance with the Contract Documents, all of which Design -Builder shall preserve for a period of three (3) years after Final Payment. Article 8 Termination for Convenience 8.1 Upon ten (10) days' written notice to Design -Builder, Owner may, for its convenience and without cause, elect to terminate this Agreement. In such event, Owner shall pay Design -Builder for the following: 1. All Work executed and for proven loss, cost or expense in connection with the Work; 2. The reasonable costs and expenses attributable to such termination, including demobilization costs and amounts due in settlement of terminated contracts with Subcontractors and Design Consultants; and 3. Overhead and profit in the amount of five percent (5%) on the sum of items 1. and 2. above. 8.2 If Owner terminates this Agreement pursuant to Section 8.1 above and proceeds to design and construct the Project through its employees, agents or third parties, Owner's rights to use the Work Product shall be as set forth in Section 4.3 hereof. (The following Article 9 should be used only if die Owner and Design -Builder agree to establish their respective representatives at the time the Agreement is executed rather than during the performance of the Project.) Article 9 Representatives of the Parties DBIA Document No. 525 - Standard Form of Agreement Page 7 Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America 9.1 Owner's Representatives 9.1.1 Owner designates the individual listed below as its Senior Representative ("Owner's Senior Representative"), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract: (Identify individual's name, title, address and telephone numbers) Ms. Debra Feazelle, City Manager 604 West Fairmont Parkway La Porte, Texas 77571 9.1.2 Owner designates the individual listed below as its Owner's Representative, which individual has the authority and responsibility set forth in Section 3.4 of the General Conditions of Contract: (Identify individual's name, title, address and telephone numbers) Mr. Steve Gillett, Director of Public Works 2963 North 23`d Street La Porte, Texas 77571 281.471.9650 9.2 Design -Builder's Representatives 9.2.1 Design -Builder designates the individual listed below as its Senior Representative ("Design -Builder's Senior Representative"), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract: (Identify individual's name, title, address and telephone numbers) Phil Packer Hale -Mills Construction, Ltd. 4130 Bellaire Boulevard, Suite 210 Houston, Texas 77025 713.665.1100 9.2.2 Design -Builder designates the individual listed below as its Design -Builder's Representative, which individual has the authority and responsibility set forth in Section 2.1.1 of the General Conditions of Contract: (Identify individual's name, title, address and telephone numbers) Page 8 DBIA Document No. 525 - Standard Form of Agreement Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America Dave Palmer Hale -Mills Construction, Ltd. 4130 Bellaire Boulevard, Suite 210 Houston, Texas 77025 713.665.1100 Article 10 Bonds and Insurance 10.1 Insurance. Design -Builder shall procure in accordance with Article 5 of the General Conditions of Contract the following insurance coverages: (Attach Insurance Schedule indicating the required coverage, amount of required coverage, duration of coverage, required rating of insurance carriers and any other insurance requirements required of the parties) See the attached insurance certificate. 10.2 Bonds and Other Performance Security. Design -Builder shall provide the following performance bond and labor and material payment bond or other performance security: (Insert the amount of bonds and any other conditions of the bonds or other security) Payment and Performance Bonds as required by Statute. Article 11 Other Provisions 11.1 Other provisions, if any, are as follows: (Insert any additional provisions) Materials incorporated into this project are exempt from State Sales tax according to provisions of the Texas Tax Code, Chapter 151, Subsection H. The Owner shall provide to Design Builder a limited sales, excise and use tax permit or exemption certificate which shall enable Design -Builder to buy the materials to be incorporated into the Work without paying tax due at time of purchase. This is a separated contract as that term is used the Texas Tax Code and applicable Texas law and the Owner agrees and acknowledges that it is purchasing the material for the Work separately from the labor for the Work. Material for the Work totals $5,304,373 and labor for the Work totals $4,339,942. This paragraph is meant to meet the separated contract definition under the Texas Tax Code and the laws of Texas. In executing this Agreement, Owner and Design -Builder each individually represents that it has the necessary financial resources to fulfill its obligations under this Agreement, and each has the necessary corporate approvals to execute this Agreement, and perform the services described herein. DBIA Document No. 525 - Standard Form of Agreement Page 9 Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America This Agreement together with the Attachments identified above constitutes the entire agreement between Owner and Design -Builder and supersedes all prior written or oral understandings. This Agreement and said Attachments may only be amended, supplemented, modified or cancelled by a duly executed written instrument. IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year first above written. OWNER: CITY OF LA PORTE, TEXAS ATTEST Aw(l. City �ecretary APPF30VED AS TO FORM: _ City Attorney DESIGN -BUILDER: HALE -MILLS CONSTRUCTION, LTD. Preside , DAP Management, L.L.C., its general partner ATTEST (SEAL) /Ud_111-� Page 10 DBIA Document No. 525 - Standard Form of Agreement Between Owner and Design -Builder - Lump Sum 1998 Design -Build Institute of America } DESIGN -BUILD INSTITUTE OF AMERICA STANDARD FORM OF GENERAL CONDITIONS OF CONTRACT BETWEEN OWNER AND DESIGN -BUILDER Document No. 535 First Edition, 1998 Design -Build Institute of America Washington, DC D B I A DESIGN -BUILD INSTITUTE DE AMERICA Standard Form of General Conditions of Contract Between Owner and Design -Builder This document has important legal consequences. Consultation with an attorney is recommended with respect to its completion or modification. Table of Contents Article1: General......................................................................................................................................3 Article 2: Design -Builder's Services and Responsibilities.........................................................................3 Article 3: Owner's Services and Responsibilities......................................................................................7 Article 4: Hazardous Conditions and Differing Site Conditions.................................................................8 Article 5: Insurance and Bonds.................................................................................................................9 Article6: Payment...................................................................................................................................11 Article7: Indemnification.........................................................................................................................13 Article8: Time................................................................. Article 9: Changes to the Contract Price and Time.................................................................................14 Article 10: Contract Adjustments and Disputes........ Article 11: Stop Work and Termination for Cause ... Article 12: Miscellaneous ........................................ .................................................................................16 ............................................................I....................17 .................................................................................19 DBIA Document No. 535 Standard Form of General Conditions of Contract Between Owner and Design -Builder 1999 Design -Build Institute of America Article 1 General 1.1 Mutual Obligations 1.1.1 Owner and Design -Builder commit at all times to cooperate fully with each other, and proceed on the basis of trust and good faith, to permit each party to realize the benefits afforded under the Contract Documents. 1.2 Basic Definitions 1.2.1 Agreement refers to the executed contract between Owner and Design -Builder under either DBIA Document No. 525, Standard Form of Agreement Between Owner and Design -Builder C Lump Sum (1998 Edition) or DBIA Document No. 530, Standard Form of Agreement Between Owner and Design -Builder C Cost Plus Fee with an Option for a Guaranteed Maximum Price (1998 Edition). 1.2.2 Day or Days shall mean calendar days unless otherwise specifically noted in the Contract Documents. 1.2.3 Design Consultant is a qualified, licensed design professional who is not an employee of Design -Builder, but is retained by Design -Builder, or employed or retained by anyone under contract with Design -Builder or Subcontractor, to furnish design services required under the Contract Documents. 1.2.4 Hazardous Conditions are any materials, wastes, substances and chemicals deemed to be hazardous under applicable Legal Requirements, or the handling, storage, remediation, or disposal of which are regulated by applicable Legal Requirements. 1.2.5 General Conditions of Contract refer to this DBIA Document No. 535, Standard Form of General Conditions of Contract Between Owner and Design - Builder (1998 Edition). 1.2.6 Legal Requirements are all applicable federal, state and local laws, codes, ordinances, rules, regulations, orders and decrees of any government or quasi -government entity having jurisdiction over the Project or Site, the practices involved in the Project or Site, or any Work. 1.2.7 Owner's Project Criteria are developed by or for Owner to describe Owner's program requirements and objectives for the Project, including use, space, price, time, site and expandability requirements, as well as submittal requirements and other requirements governing Design -Builder's performance of the Work. Owner's Project Criteria may include conceptual documents, design criteria, performance requirements and other Project -specific technical materials and requirements. 1.2.8 Site is the land or premises on which the Project is located. 1.2.9 Subcontractor is any person or entity retained by Design -Builder as an independent contractor to perform a portion of the Work and shall include materialmen and suppliers. 1.2.10 Sub -Subcontractor is any person or entity retained by a Subcontractor as an independent contractor to perform any portion of a Subcontractor's Work and shall include materialmen and suppliers. 1.2.11 Substantial Completion is the date on which the Work, or an agreed upon portion of the Work, is sufficiently complete so that Owner can occupy and use the Project or a portion thereof for its intended purposes. 1.2.12 Work is comprised of all Design -Builder's design, construction and other services required by the Contract Documents, including procuring and furnishing all materials, equipment, services and labor reasonably inferable from the Contract Documents. Article 2 Design -Builder's Services and Responsibilities 2.1 General Services 2.1.1 Design -Builder's Representative shall be reasonably available to Owner and shall have the necessary expertise and experience required to supervise the Work. Design -Builder's Representative shall communicate regularly with Owner and shall be vested with the authority to act on behalf of Design -Builder. Design -Builder's DBIA Document No. 535 Standard Form of General Conditions Page 3 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America Representative may be replaced only with the mutual agreement of Owner and Design -Builder. 2.1.2 Design -Builder shall provide Owner with a monthly status report detailing the progress of the Work, including whether (i) the Work is proceeding according to schedule, (ii) discrepancies, conflicts, or ambiguities exist in the Contract Documents that require resolution, (iii) health and safety issues exist in connection with the Work, and (iv) other items require resolution so as not to jeopardize Design - Builder's ability to complete the Work for the Contract Price and within the Contract Time(s). 2.1.3 Design -Builder shall prepare and submit, at least three (3) days prior to the meeting contemplated by Section 2.1.4 hereof, a schedule for the execution of the Work for Owner's review and response. The schedule shall indicate the dates for the start and completion of the various stages of Work, including the dates when Owner information and approvals are required to enable Design -Builder to achieve the Contract Time(s). The schedule shall be revised as required by conditions and progress of the Work, but such revisions shall not relieve Design -Builder of its obligations to complete the Work within the Contract Time(s), as such dates may be adjusted in accordance with the Contract Documents. Owner's review of and response to the schedule shall not be construed as relieving Design -Builder of its complete and exclusive control over the means, methods, sequences and techniques for executing the Work. 2.1.4 The parties will meet within seven (7) days after execution of the Agreement to discuss issues affecting the administration of the Work and to implement the necessary procedures, including those relating to submittals and payment, to facilitate the ability of the parties to perform their obligations under the Contract Documents. 2.2 Design Professional Services 2.2.1 Design -Builder shall, consistent with applicable state licensing laws, provide through qualified, licensed design professionals employed by Design -Builder, or procured from qualified, independent licensed Design Consultants, the necessary design services, including architectural, engineering and other design professional services, for the preparation of the required drawings, specifications and other design submittals to permit Design -Builder to complete the Work consistent with the Contract Documents. Nothing in the Contract Documents is intended or deemed to create any legal or contractual relationship between Owner and any Design Consultant. 2.3 Standard of Care for Design Professional Services 2.3.1 The standard of care for all design professional services performed to execute the Work shall be the care and skill ordinarily used by members of the design profession practicing under similar conditions at the same time and locality of the Project. Notwithstanding the preceding sentence, if the parties agree upon specific performance standards for any aspect of the Work, which standards are to be set forth in an exhibit to the Agreement entitled "Performance Standard Requirements," the design professional services shall be performed to achieve such standards. 2.4 Design Development Services 2.4.1 Design -Builder and Owner shall, consistent with any applicable provision of the Contract Documents, agree upon any interim design submissions that Owner may wish to review, which interim design submissions may include design criteria, drawings, diagrams and specifications setting forth the Project requirements. On or about the time of the scheduled submissions, Design - Builder and Owner shall meet and confer about the submissions, with Design -Builder identifying during such meetings, among other things, the evolution of the design and any significant changes or deviations from the Contract Documents, or, if applicable, previously submitted design submissions. Minutes of the meetings will be maintained by Design -Builder and provided to all attendees for review. Following the design review meeting, Owner shall review and approve the interim design submissions in a time that is consistent with the turnaround times set forth in Design -Builder's schedule. 2.4.2 Design -Builder shall submit to Owner Construction Documents setting forth in detail drawings and specifications describing the requirements for construction of the Work. The Construction Documents shall be consistent with the latest set of interim design submissions, as such submissions may have been modified in a design review meeting. The parties shall have a design DBIA Document No. 535 Standard Form of General Conditions Page 4 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America review meeting to discuss, and Owner shall review and approve, the Construction Documents in accordance with the procedures set forth Section 2.4.1 above. Design -Builder shall proceed with construction in accordance with the approved Construction Documents and shall submit one set of approved Construction Documents to Owner prior to commencement of construction. 2.4.3 Owner's review and approval of interim design submissions and the Construction Documents is for the purpose of mutually establishing a conformed set of Contract Documents compatible with the requirements of the Work. Neither Owner's review nor approval of any interim design submissions and Construction Documents shall be deemed to transfer any design liability from Design -Builder to Owner. 2.4.4 To the extent not prohibited by the Contract Documents or Legal Requirements, Design -Builder may prepare interim design submissions and Construction Documents for a portion of the Work to permit construction to proceed on that portion of the Work prior to completion of the Construction Documents for the entire Work. 2.5 Legal Requirements 2.5.1 Design -Builder shall perform the Work in accordance with all Legal Requirements and shall provide all notices applicable to the Work as required by the Legal Requirements. 2.5.2 The Contract Price and/or Contract Time(s) shall be adjusted to compensate Design -Builder for the effects of any changes in the Legal Requirements enacted after the date of the Agreement affecting the performance of the Work, or if a Guaranteed Maximum Price is established after the date of the Agreement, the date the parties agree upon the Guaranteed Maximum Price. Such effects may include, without limitation, revisions Design -Builder is required to make to the Construction Documents because of changes in Legal Requirements. 2.6 Government Approvals and Permits 2.6.1 Except as identified in an Owner's Permit List attached as an exhibit to the Agreement, Design -Builder shall obtain and pay for all necessary permits, approvals, licenses, government charges and inspection fees required for the prosecution of the Work by any government or quasi -government entity having jurisdiction over the Project. 2.6.2 Design -Builder shall provide reasonable assistance to Owner in obtaining those permits, approvals and licenses that are Owner's responsibility. 2.7 Design -Builder's Construction Phase Services 2.7.1 Unless otherwise provided in the Contract Documents to be the responsibility of Owner or a separate contractor, Design -Builder shall provide through itself or Subcontractors the necessary supervision, labor, inspection, testing, start-up, material, equipment, machinery, temporary utilities and other temporary facilities to permit Design - Builder to complete construction of the Project consistent with the Contract Documents. 2.7.2 Design -Builder shall perform all construction activities efficiently and with the requisite expertise, skill and competence to satisfy the requirements of the Contract Documents. Design -Builder shall at all times exercise complete and exclusive control over the means, methods, sequences and techniques of construction. 2.7.3 Design -Builder shall employ only Subcontractors who are duly licensed and qualified to perform the Work consistent with the Contract Documents. Owner may reasonably object to Design -Builder's selection of any Subcontractor, provided that the Contract Price and/or Contract Time(s) shall be adjusted to the extent that Owner's decision impacts Design -Builder's cost and/or time of performance. 2.7.4 Design -Builder assumes responsibility to Owner for the proper performance of the Work of Subcontractors and any acts and omissions in connection with such performance. Nothing in the Contract Documents is intended or deemed to create any legal or contractual relationship between Owner and any Subcontractor or Sub - Subcontractor, including but not limited to any third - party beneficiary rights. 2.7.5 Design -Builder shall coordinate the activities of all Subcontractors. If Owner performs other work on the Project or at the Site with separate DBIA Document No. 535 Standard Form of General Conditions Page 5 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America contractors under Owner's control, Design -Builder agrees to reasonably cooperate and coordinate its activities with those of such separate contractors so that the Project can be completed in an orderly and coordinated manner without unreasonable disruption. 2.7.6 Design -Builder shall keep the Site reasonably free from debris, trash and construction wastes to permit Design -Builder to perform its construction services efficiently, safely and without interfering with the use of adjacent land areas. Upon Substantial Completion of the Work, or a portion of the Work, Design -Builder shall remove all debris, trash, construction wastes, materials, equipment, machinery and tools arising from the Work or applicable portions thereof to permit Owner to occupy the Project or a portion of the Project for its intended use. 2.8 Design -Builder's Responsibility for Project Safety 2.8.1 Design -Builder recognizes the importance of performing the Work in a safe manner so as to prevent damage, injury or loss to (i) all individuals at the Site, whether working or visiting, (ii) the Work, including materials and equipment incorporated into the Work or stored on -Site or off -Site, and (iii) all other property at the Site or adjacent thereto. Design -Builder assumes responsibility for implementing and monitoring all safety precautions and programs related to the performance of the Work. Design -Builder shall, prior to commencing construction, designate a Safety Representative with the necessary qualifications and experience to supervise the implementation and monitoring of all safety precautions and programs related to the Work. Unless otherwise required by the Contract Documents, Design -Builder's Safety Representative shall be an individual stationed at the Site who may have responsibilities on the Project in addition to safety. The Safety Representative shall make routine daily inspections of the Site and shall hold weekly safety meetings with Design -Builder's personnel, Subcontractors and others as applicable. 2.8.2 Design -Builder and Subcontractors shall comply with all Legal Requirements relating to safety, as well as any Owner -specific safety requirements set forth in the Contract Documents, provided that such Owner -specific requirements do not violate any applicable Legal Requirement. Design -Builder will immediately report in writing any safety -related injury, loss, damage or accident arising from the Work to Owner's Representative and, to the extent mandated by Legal Requirements, to all government or quasi -government authorities having jurisdiction over safety -related matters involving the Project or the Work. 2.8.3 Design -Builder's responsibility for safety under this Section 2.8 is not intended in any way to relieve Subcontractors and Sub -Subcontractors of their own contractual and legal obligations and responsibility for (i) complying with all Legal Requirements, including those related to health and safety matters, and (ii) taking all necessary measures to implement and monitor all safety precautions and programs to guard against injury, losses, damages or accidents resulting from their performance of the Work. 2.9 Design -Builder's Warranty 2.9.1 Design -Builder warrants to Owner that the construction, including all materials and equipment furnished as part of the construction, shall be new unless otherwise specified in the Contract Documents, of good quality, in conformance with the Contract Documents and free of defects in materials and workmanship. Design -Builder's warranty obligation excludes defects caused by abuse, alterations, or failure to maintain the Work by persons other than Design -Builder or anyone for whose acts Design -Builder may be liable. Nothing in this warranty is intended to limit any manufacturer's warranty which provides Owner with greater warranty rights than set forth in this Section 2.9 or the Contract Documents. Design -Builder will provide Owner with all manufacturers' warranties upon Substantial Completion. 2.10 Correction of Defective Work 2.10.1 Design -Builder agrees to correct any Work that is found to not be in conformance with the Contract Documents, including that part of the Work subject to Section 2.9 hereof, within a period of one year from the date of Substantial Completion of the Work or any portion of the Work, or within such longer period to the extent required by the Contract Documents. 2.10.2 Design -Builder shall, within seven (7) days of receipt of written notice from Owner that the Work DBIA Document No. 535 Standard Form of General Conditions Page 6 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America is not in conformance with the Contract Documents, take meaningful steps to commence correction of such nonconforming Work, including the correction, removal or replacement of the nonconforming Work and any damage caused to other parts of the Work affected by the nonconforming Work. If Design - Builder fails to commence the necessary steps within such seven (7) day period, Owner, in addition to any other remedies provided under the Contract Documents, may provide Design -Builder with written notice that Owner will commence correction of such nonconforming Work with its own forces. If Owner does perform such corrective Work, Design -Builder shall be responsible for all reasonable costs incurred by Owner in performing such correction. If the nonconforming Work creates an emergency requiring an immediate response, the seven (7) day periods identified herein shall be deemed inapplicable. 2.10.3 The one year period referenced in Section 2.10.1 above applies only to Design -Builder's obligation to correct nonconforming Work and is not intended to constitute a period of limitations for any other rights or remedies Owner may have regarding Design -Builder's other obligations under the Contract Documents. Article 3 Owner's Services and Responsibilities 3.1 Duty to Cooperate 3.1.1 Owner shall, throughout the performance of the Work, cooperate with Design -Builder and perform its responsibilities, obligations and services in a timely manner to facilitate Design -Builder's timely and efficient performance of the Work and so as not to delay or interfere with Design -Builder's performance of its obligations under the Contract Documents. 3.1.2 Owner shall provide timely reviews and approvals of interim design submissions and Construction Documents consistent with the turnaround times set forth in Design -Builder's schedule. 3.2 Furnishing of Services and Information 3.2.1 Unless expressly stated to the contrary in the Contract Documents, Owner shall provide, at its own cost and expense, for Design -Builder's information and use the following, all of which Design -Builder is entitled to rely upon in performing the Work: .1 Surveys describing the property, boundaries, topography and reference points for use during construction, including existing service and utility lines; 2 Geotechnical studies describing subsurface conditions, and other surveys describing other latent or concealed physical conditions at the Site; .3 Temporary and permanent easements, zoning and other requirements and encumbrances affecting land use, or necessary to permit the proper design and construction of the Project and enable Design -Builder to perform the Work; .4 A legal description of the Site; .5 To the extent available, as -built and record drawings of any existing structures at the Site; and .6 To the extent available, environmental studies, reports and impact statements describing the environmental conditions, including Hazardous Conditions, in existence at the Site. 3.2.2 Owner is responsible for securing and executing all necessary agreements with adjacent land or property owners that are necessary to enable Design -Builder to perform the Work. Owner is further responsible for all costs, including attorneys' fees, incurred in securing these necessary agreements. 3.3 Financial Information 3.3.1 At Design -Builder's request, Owner shall promptly furnish reasonable evidence satisfactory to Design -Builder that Owner has adequate funds available and committed to fulfill all of Owner's contractual obligations under the Contract Documents. If Owner fails to furnish such financial DBIA Document No. 535 Standard Form of General Conditions Page 7 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America information in a timely manner, Design -Builder may stop Work under Section 11.3 hereof or exercise any other right permitted under the Contract Documents. 3.3.2 Design -Builder shall cooperate with the reasonable requirements of Owner's lenders or other financial sources. Notwithstanding the preceding sentence, after execution of the Agreement Design -Builder shall have no obligation to execute for Owner or Owner's lenders or other financial sources any documents or agreements that require Design -Builder to assume obligations or responsibilities greater than those existing obligations Design -Builder has under the Contract Documents. 3.4 Owner's Representative 3.4.1 Owner's Representative shall be responsible for providing Owner -supplied information and approvals in a timely manner to permit Design -Builder to fulfill its obligations under the Contract Documents. Owner's Representative shall also provide Design -Builder with prompt notice if it observes any failure on the part of Design - Builder to fulfill its contractual obligations, including any errors, omissions or defects in the performance of the Work. 3.5 Government Approvals and Permits 3.5.1 Owner shall obtain and pay for all necessary permits, approvals, licenses, government charges and inspection fees set forth in the Owner's Permit List attached as an exhibit to the Agreement. 3.5.2 Owner shall provide reasonable assistance to Design -Builder in obtaining those permits, approvals and licenses that are Design -Builder's responsibility. 3.6 Owner's Separate Contractors 3.6.1 Owner is responsible for all work performed on the Project or at the Site by separate contractors under Owner's control. Owner shall contractually require its separate contractors to cooperate with, and coordinate their activities so as not to interfere with, Design -Builder in order to enable Design - Builder to timely complete the Work consistent with the Contract Documents. Article 4 Hazardous Conditions and Differing Site Conditions 4.1 Hazardous Conditions 4.1.1 Unless otherwise expressly provided in the Contract Documents to be part of the Work, Design - Builder is not responsible for any Hazardous Conditions encountered at the Site. Upon encountering any Hazardous Conditions, Design - Builder will stop Work immediately in the affected area and duly notify Owner and, if required by Legal Requirements, all government or quasi -government entities with jurisdiction over the Project or Site. 4.1.2 Upon receiving notice of the presence of suspected Hazardous Conditions, Owner shall take the necessary measures required to ensure that the Hazardous Conditions are remediated or rendered harmless. Such necessary measures shall include Owner retaining qualified independent experts to (i) ascertain whether Hazardous Conditions have actually been encountered, and, if they have been encountered, (ii) prescribe the remedial measures that Owner must take either to remove the Hazardous Conditions or render the Hazardous Conditions harmless. 4.1.3 Design -Builder shall be obligated to resume Work at the affected area of the Project only after Owner's expert provides it with written certification that (i) the Hazardous Conditions have been removed or rendered harmless and (ii) all necessary approvals have been obtained from all government and quasi -government entities having jurisdiction over the Project or Site. 4.1.4 Design -Builder will be entitled, in accordance with these General Conditions of Contract, to an adjustment in its Contract Price and/or Contract Time(s) to the extent Design - Builder's cost and/or time of performance have been adversely impacted by the presence of Hazardous Conditions. 4.1.5 To the fullest extent permitted by law, Owner shall indemnify, defend and hold harmless Design -Builder, Design Consultants, Subcontractors, anyone employed directly or DBIA Document No. 535 Standard Form of General Conditions Page 8 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America indirectly for any of them, and their officers, directors, employees and agents, from and against any and all claims, losses, damages, liabilities and expenses, including attorneys' fees and expenses, arising out of or resulting from the presence, removal or remediation of Hazardous Conditions at the Site. 4.1.6 Notwithstanding the preceding provisions of this Section 4.1, Owner is not responsible for Hazardous Conditions introduced to the Site by Design -Builder, Subcontractors or anyone for whose acts they may be liable. Design -Builder shall indemnify, defend and hold harmless Owner and Owner's officers, directors, employees and agents from and against all claims, losses, damages, liabilities and expenses, including attorneys' fees and expenses, arising out of or resulting from those Hazardous Conditions introduced to the Site by Design -Builder, Subcontractors or anyone for whose acts they may be liable. 4.2 Differing Site Conditions 4.2.1 Concealed or latent physical conditions or subsurface conditions at the Site that (i) materially differ from the conditions indicated in the Contract Documents or (ii) are of an unusual nature, differing materially from the conditions ordinarily encountered and generally recognized as inherent in the Work are collectively referred to herein as "Differing Site Conditions." If Design -Builder encounters a Differing Site Condition, Design -Builder will be entitled to an adjustment in the Contract Price and/or Contract Time(s) to the extent Design - Builder's cost and/or time of performance are adversely impacted by the Differing Site Condition. 4.2.2 Upon encountering a Differing Site Condition, Design -Builder shall provide prompt written notice to Owner of such condition, which notice shall not be later than fourteen (14) days after such condition has been encountered. Design - Builder shall, to the extent reasonably possible, provide such notice before the Differing Site Condition has been substantially disturbed or altered. Article 5 Insurance and Bonds 5.1 Design -Builder's Insurance Requirements 5.1.1 Design -Builder is responsible for procuring and maintaining from insurance companies authorized to do business in the state in which the Project is located, and with a minimum rating set forth in the Agreement, the following insurance coverages for certain claims which may arise from or out of the performance of the Work and obligations under the Contract Documents: .1 Coverage for claims arising under workers' compensation, disability and other similar employee benefit laws applicable to the Work; .2 Coverage for claims by Design - Builder's employees for bodily injury, sickness, disease, or death; .3 Coverage for claims by any person other than Design -Builder's employees for bodily injury, sickness, disease, or death; .4 Coverage for usual personal injury liability claims for damages sustained by a person as a direct or indirect result of Design -Builder's employment of the person, or sustained by any other person; .5 Coverage for claims for damages (other than to the Work) because of injury to or destruction of tangible property, including loss of use; .6 Coverage for claims of damages because of personal injury or death, or property damage resulting from ownership, use and maintenance of any motor vehicle; and 7 Coverage for contractual liability claims arising out of Design -Builder's obligations under Section 7.4.1 hereof. DBIA Document No. 535 Standard Form of General Conditions Page 9 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America 5.1.2 Design -Builder's liability insurance required by Section 5.1.1 above shall be written for the coverage amounts set forth in the Agreement and shall include completed operations insurance for the period of time set forth in the Agreement. 5.1.3 Design -Builder's liability insurance set forth in Sections 5.1.1.1 through 5.1.1.7 above shall specifically delete any design -build or similar exclusions that could compromise coverages because of the design -build delivery of the Project. 5.1.4 To the extent Owner requires Design - Builder or any Design Consultant to provide professional liability insurance for claims arising from the negligent performance of design services by Design -Builder or the Design Consultant, the coverage limits, duration and other specifics of such insurance shall be as set forth in the Agreement. Any professional liability shall specifically delete any design -build or similar exclusions that could compromise coverages because of the design -build delivery of the Project. Such policies shall be provided prior to the commencement of any design services hereunder. 5.1.5 Prior to commencing any construction services hereunder, Design -Builder shall provide Owner with certificates evidencing that (i) all insurance obligations required by the Contract Documents are in full force and in effect and will remain in effect for the duration required by the Contract Documents and (ii) no insurance coverage will be canceled, renewal refused, or materially changed unless at least thirty (30) days prior written notice is given to Owner. 5.2 Owner's Liability Insurance 5.2.1 Owner shall procure and maintain from insurance companies authorized to do business in the state in which the Project is located such liability insurance to protect Owner from claims which may arise from the performance of Owner's obligations under the Contract Documents or Owner's conduct during the course of the Project. 5.3 Owner's Property Insurance 5.3.1 Unless otherwise provided in the Contract Documents, Owner shall procure and maintain from insurance companies authorized to do business in the state in which the Project is located property insurance upon the entire Project to the full insurable value of the Project, including professional fees, overtime premiums and all other expenses incurred to replace or repair the insured property. The property insurance obtained by Owner shall include as additional insureds the interests of Owner, Design -Builder, Design Consultants, Subcontractors and Sub -Subcontractors, and shall insure against the perils of fire and extended coverage, theft, vandalism, malicious mischief, collapse, flood, earthquake, debris removal and other perils or causes of loss as called for in the Contract Documents. The property insurance shall include physical loss or damage to the Work, including materials and equipment in transit, at the Site or at another location as may be indicated in Design -Builder's Application for Payment and approved by Owner. 5.3.2 Unless the Contract Documents provide otherwise, Owner shall procure and maintain boiler and machinery insurance that will include the interests of Owner, Design -Builder, Design Consultants, Subcontractors and Sub - Subcontractors. 5.3.3 Prior to Design -Builder commencing any Work, Owner shall provide Design -Builder with certificates evidencing that (i) all Owner's insurance obligations required by the Contract Documents are in full force and in effect and will remain in effect until Design -Builder has completed all of the Work and has received final payment from Owner and (ii) no insurance coverage will be canceled, renewal refused, or materially changed unless at least thirty (30) days prior written notice is given to Design - Builder. Owner's property insurance shall not lapse or be canceled if Owner occupies a portion of the Work pursuant to Section 6.6.3 hereof. Owner shall provide Design -Builder with the necessary endorsements from the insurance company prior to occupying a portion of the Work. 5.3.4 Any loss covered under Owner's property insurance shall be adjusted with Owner and Design - Builder and made payable to both of them as trustees for the insureds as their interests may appear, subject to any applicable mortgage clause. All insurance proceeds received as a result of any loss will be placed in a separate account and distributed in accordance with such agreement as the interested parties may reach. Any disagreement DBIA Document No. 535 Standard Form of General Conditions Page 10 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America concerning the distribution of any proceeds will be resolved in accordance with Article 10 hereof. 5.3.5 Owner and Design -Builder waive against each other and Owner's separate contractors, Design Consultants, Subcontractors, agents and employees of each and all of them, all damages covered by property insurance provided herein, except such rights as they may have to the proceeds of such insurance. Design -Builder and Owner shall, where appropriate, require similar waivers of subrogation from Owner's separate contractors, Design Consultants and Subcontractors and shall require each of them to include similar waivers in their contracts. 5.4 Bonds and Other Performance Security 5.4.1 If Owner requires Design -Builder to obtain performance and labor and material payment bonds, or other forms of performance security, the amount, form and other conditions of such security shall be as set forth in the Agreement. Article 6 Payment 6.1 Schedule of Values 6.1.1 Within ten (10) days of execution of the Agreement, Design -Builder shall submit for Owner's review and approval a schedule of values for all of the Work. The Schedule of Values will (i) subdivide the Work into its respective parts, (ii) include values for all items comprising the Work and (iii) serve as the basis for monthly progress payments made to Design -Builder throughout the Work. 6.2 Monthly Progress Payments 6.2.1 On or before the date established in the Agreement, Design -Builder shall submit for Owner's review and approval its Application for Payment requesting payment for all Work performed as of the date of the Application for Payment. The Application for Payment shall be accompanied by all supporting documentation required by the Contract Documents and/or established at the meeting required by Section 2.1.4 hereof. 6.2.2 The Application for Payment may request payment for equipment and materials not yet incorporated into the Project, provided that (i) Owner is satisfied that the equipment and materials are suitably stored at either the Site or another acceptable location, (ii) the equipment and materials are protected by suitable insurance and (iii) upon payment, Owner will receive the equipment and materials free and clear of all liens and encumbrances. 6.2.3 The Application for Payment shall constitute Design -Builder's representation that the Work has been performed consistent with the Contract Documents, has progressed to the point indicated in the Application for Payment, and that title to all Work will pass to Owner free and clear of all claims, liens, encumbrances, and security interests upon the incorporation of the Work into the Project, or upon Design -Builder's receipt of payment, whichever occurs earlier. 6.3 Withholding of Payments 6.3.1 On or before the date established in the Agreement, Owner shall pay Design -Builder all amounts properly due. If Owner determines that Design -Builder is not entitled to all or part of an Application for Payment, it will notify Design -Builder in writing at least five (5) days prior to the date payment is due. The notice shall indicate the specific amounts Owner intends to withhold, the reasons and contractual basis for the withholding, and the specific measures Design -Builder must take to rectify Owner's concerns. Design -Builder and Owner will attempt to resolve Owner's concerns prior to the date payment is due. If the parties cannot resolve such concerns, Design -Builder may pursue its rights under the Contract Documents, including those under Article 10 hereof. 6.3.2 Notwithstanding anything to the contrary in the Contract Documents, Owner shall pay Design - Builder all undisputed amounts in an Application for Payment within the times required by the Agreement. 6.4 Right to Stop Work and Interest 6.4.1 If Owner fails to pay Design -Builder any amount that becomes due, Design -Builder, in addition to all other remedies provided in the Contract Documents, may stop Work pursuant to Section 11.3 hereof. All payments due and unpaid DBIA Document No. 535 Standard Form of General Conditions Page l I of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America shall bear interest at the rate set forth in the Agreement. 6.5 Design -Builder's Payment Obligations 6.5.1 Design -Builder will pay Design Consultants and Subcontractors, in accordance with its contractual obligations to such parties, all the amounts Design -Builder has received from Owner on account of their work. Design -Builder will impose similar requirements on Design Consultants and Subcontractors to pay those parties with whom they have contracted. Design -Builder will indemnify and defend Owner against any claims for payment and mechanic's liens as set forth in Section 7.3 hereof. 6.6 Substantial Completion 6.6.1 Design -Builder shall notify Owner when it believes the Work, or to the extent permitted in the Contract Documents, a portion of the Work, is substantially complete. Within five (5) days of Owner's receipt of Design -Builder's notice, Owner and Design -Builder will jointly inspect such Work to verify that it is substantially complete in accordance with the requirements of the Contract Documents. If such Work is substantially complete, Owner shall prepare and issue a Certificate of Substantial Completion that will set forth (i) the date of Substantial Completion of the Work or portion thereof, (ii) the remaining items of Work that have to be completed before final payment, (iii) provisions (to the extent not already provided in the Contract Documents) establishing Owner's and Design - Builder's responsibility for the Project's security, maintenance, utilities and insurance pending final payment and (iv) an acknowledgment that warranties commence to run on the date of Substantial Completion, except as may otherwise be noted in the Certificate of Substantial Completion. 6.6.2 Upon Substantial Completion of the entire Work or, if applicable, any portion of the Work, Owner shall release to Design -Builder all retained amounts relating, as applicable, to the entire Work or completed portion of the Work, less an amount equal to the reasonable value of all remaining or incomplete items of Work as noted in the Certificate of Substantial Completion. 6.6.3 Owner, at its option, may use a portion of the Work which has been determined to be substantially complete, provided, however, that (i) a Certificate of Substantial Completion has been issued for the portion of Work addressing the items set forth in Section 6.6.1 above, (ii) Design -Builder and Owner have obtained the consent of their sureties and insurers, and to the extent applicable, the appropriate government authorities having jurisdiction over the Project, and (iii) Owner and Design -Builder agree that Owner's use or occupancy will not interfere with Design -Builder's completion of the remaining Work. 6.7 Final Payment 6.7.1 After receipt of a Final Application for Payment from Design -Builder, Owner shall make final payment by the time required in the Agreement, provided that Design -Builder has completed all of the Work in conformance with the Contract Documents. 6.7.2 At the time of submission of its Final Application for Payment, Design -Builder shall provide the following information: .1 an affidavit that there are no claims, obligations or liens outstanding or unsatisfied for labor, services, material, equipment, taxes or other items performed, furnished or incurred for or in connection with the Work which will in any way affect Owner's interests; .2 a general release executed by Design - Builder waiving, upon receipt of final payment by Design -Builder, all claims, except those claims previously made in writing to Owner and remaining unsettled at the time of final payment; 3 consent of Design -Builder's surety, any, to final payment; .4 all operating manuals, warranties and other deliverables required by the Contract Documents; and .5 certificates of insurance confirming that required coverages will remain in effect consistent with the requirements of the Contract Documents. DBIA Document No. 535 Standard Form of General Conditions Page 12 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America 6.7.3 Upon making final payment, Owner waives all claims against Design -Builder except claims relating to (i) Design -Builder's failure to satisfy its payment obligations, if such failure affects Owner's interests, (ii) Design -Builder's failure to complete the Work consistent with the Contract Documents, including defects appearing after Substantial Completion and (iii) the terms of any special warranties required by the Contract Documents. Article 7 Indemnification 7.1 Patent and Copyright Infringement 7.1.1 Design -Builder shall defend any action or proceeding brought against Owner based on any claim that the Work, or any part thereof, or the operation or use of the Work or any part thereof, constitutes infringement of any United States patent or copyright, now or hereafter issued. Owner shall give prompt written notice to Design -Builder of any such action or proceeding and will reasonably provide authority, information and assistance in the defense of same. Design -Builder shall indemnify and hold harmless Owner from and against all damages and costs, including but not limited to attorneys' fees and expenses awarded against Owner or Design -Builder in any such action or proceeding. Design -Builder agrees to keep Owner informed of all developments in the defense of such actions. 7.1.2 If Owner is enjoined from the operation or use of the Work, or any part thereof, as the result of any patent or copyright suit, claim, or proceeding, Design -Builder shall at its sole expense take reasonable steps to procure the right to operate or use the Work. If Design -Builder cannot so procure such right within a reasonable time, Design -Builder shall promptly, at Design -Builder's option and at Design -Builder's expense, (i) modify the Work so as to avoid infringement of any such patent or copyright or (ii) replace said Work with Work that does not infringe or violate any such patent or copyright. 7.1.3 Sections 7.1.1 and 7.1.2 above shall not be applicable to any suit, claim or proceeding based on infringement or violation of a patent or copyright (i) relating solely to a particular process or product of a particular manufacturer specified by Owner and not offered or recommended by Design -Builder to Owner or (ii) arising from modifications to the Work by Owner or its agents after acceptance of the Work. If the suit, claim or proceeding is based upon events set forth in the preceding sentence, Owner shall defend, indemnify and hold harmless Design - Builder to the same extent Design -Builder is obligated to defend, indemnify and hold harmless Owner in Section 7.1.1 above. 7.1.4 The obligations set forth in this Section 7.1 shall constitute the sole agreement between the parties relating to liability for infringement of violation of any patent or copyright. 7.2 Tax Claim Indemnification 7.2.1 If, in accordance with Owner's direction, an exemption for all or part of the Work is claimed for taxes, Owner shall indemnify, defend and hold harmless Design -Builder from and against any liability, penalty, interest, fine, tax assessment, attorneys' fees or other expenses or costs incurred by Design -Builder as a result of any action taken by Design -Builder in accordance with Owner's directive. 7.3 Payment Claim Indemnification 7.3.1 Providing that Owner is not in breach of its contractual obligation to make payments to Design - Builder for the Work, Design -Builder shall indemnify, defend and hold harm less Owner from any claims or mechanic's liens brought against Owner or against the Project as a result of the failure of Design - Builder, or those for whose acts it is responsible, to pay for any services, materials, labor, equipment, taxes or other items or obligations furnished or incurred for or in connection with the Work. Within three (3) days of receiving written notice from Owner that such a claim or mechanic's lien has been filed, Design -Builder shall commence to take the steps necessary to discharge said claim or lien, including, if necessary, the furnishing of a mechanic's lien bond. If Design -Builder fails to do so, Owner will have the right to discharge the claim or lien and hold Design -Builder liable for costs and expenses incurred, including attorneys' fees. 7.4 Design -Builder's General Indemnification 7.4.1 Design -Builder, to the fullest extent permitted by law, shall indemnify, hold harmless and defend Owner, its officers, directors, employees and DBIA Document No. 535 Standard Form of General Conditions Page 13 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America agents from and against claims, losses, damages, liabilities, including attorneys' fees and expenses, for bodily injury, sickness or death, and property damage or destruction (other than to the Work itself) to the extent resulting from the negligent acts or omissions of Design -Builder, Design Consultants, Subcontractors, anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable. 7.4.2 If an employee of Design -Builder, Design Consultants, Subcontractors, anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable has a claim against Owner, its officers, directors, employees, or agents, Design -Builder's indemnity obligation set forth in Section 7.4.1 above shall not be limited by any limitation on the amount of damages, compensation or benefits payable by or for Design - Builder, Design Consultants, Subcontractors, or other entity under any employee benefit acts, including workers' compensation or disability acts. 7.5 Owner's General Indemnification 7.5.1 Owner, to the fullest extent permitted by law, shall indemnify, hold harmless and defend Design - Builder and any of Design -Builder's officers, directors, employees, or agents from and against claims, losses, damages, liabilities, including attorneys' fees and expenses, for bodily injury, sickness or death, and property damage or destruction (other than to the Work itself) to the extent resulting from the negligent acts or omissions of Owner's separate contractors or anyone for whose acts any of them may be liable. Article 8 Time 8.1 Obligation to Achieve the Contract Times 8.1.1 Design -Builder agrees that it will commence performance of the Work and achieve the Contract Time(s) in accordance with Article 5 of the Agreement. 8.2 Delays to the Work 8.2.1 If Design -Builder is delayed in the performance of the Work due to acts, omissions, conditions, events, or circumstances beyond its control and due to no fault of its own or those for whom Design -Builder is responsible, the Contract Time(s) for performance shall be reasonably extended by Change Order. By way of example, events that will entitle Design -Builder to an extension of the Contract Time(s) include acts or omissions of Owner or anyone under Owner's control (including separate contractors), changes in the Work, Differing Site Conditions, Hazardous Conditions, wars, floods, labor disputes, unusual delay in transportation, epidemics abroad, earthquakes, adverse weather conditions not reasonably anticipated, and other acts of God. 8.2.2 In addition to Design -Builder's right to a time extension for those events set forth in Section 8.2.1 above, Design -Builder shall also be entitled to an appropriate adjustment of the Contract Price provided, however, that the Contract Price shall not be adjusted for those events set forth in Section 8.2.1 above that are beyond the control of both Design -Builder and Owner, including the events of war, floods, labor disputes, earthquakes, epidemics, adverse weather conditions not reasonably anticipated, and other acts of God. Article 9 Changes to the Contract Price and Time 9.1 Change Orders 9.1.1 A Change Order is a written instrument issued after execution of the Agreement signed by Owner and Design -Builder, stating their agreement upon all of the following: .1 The scope of the change in the Work; .2 The amount of the adjustment to the Contract Price; and .3 The extent of the adjustment to the Contract Time(s). 9.1.2 All changes in the Work authorized by applicable Change Order shall be performed under the applicable conditions of the Contract Documents. Owner and Design -Builder shall DBIA Document No. 535 Standard Form of General Conditions Page 14 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America negotiate in good faith and as expeditiously as possible the appropriate adjustments for such changes. 9.1.3 If Owner requests a proposal for a change in the Work from Design -Builder and subsequently elects not to proceed with the change, a Change Order shall be issued to reimburse Design -Builder for reasonable costs incurred for estimating services, design services and services involved in the preparation of proposed revisions to the Contract Documents. 9.2 Work Change Directives 9.2.1 A Work Change Directive is a written order prepared and signed by Owner, directing a change in the Work prior to agreement on an adjustment in the Contract Price and/or the Contract Time(s). 9.2.2 Owner and Design -Builder shall negotiate in good faith and as expeditiously as possible the appropriate adjustments for the Work Change Directive. Upon reaching an agreement, the parties shall prepare and execute an appropriate Change Order reflecting the terms of the agreement. 9.3 Minor Changes in the Work 9.3.1 Minor changes in the Work do not involve an adjustment in the Contract Price and/or Contract Time(s) and do not materially and adversely affect the Work, including the design, quality, performance and workmanship required by the Contract Documents. Design -Builder may make minor changes in the Work consistent with the intent of the Contract Documents, provided, however that Design -Builder shall promptly inform Owner, in writing, of any such changes and record such changes on the documents maintained by Design - Builder. 9.4 Contract Price Adjustments 9.4.1 The increase or decrease in Contract Price resulting from a change in the Work shall be determined by one or more of the following methods: 1 Unit prices set forth in the Agreement or as subsequently agreed to between the parties; .2 A mutually accepted, lump sum, properly itemized and supported by sufficient substantiating data to permit evaluation by Owner; .3 Costs, fees and any other markups set forth in the Agreement; and .4 If an increase or decrease cannot be agreed to as set forth in items .1 through .3 above and Owner issues a Work Change Directive, the cost of the change of the Work shall be determined by the reasonable expense and savings in the performance of the Work resulting from the change, including a reasonable overhead and profit, as may be set forth in the Agreement. If the net result of both additions and deletions to the Work is an increase in the Contract Price, overhead and profit shall be calculated on the basis of the net increase to the Contract Price. if the net result of both additions and deletions to the Work is a decrease in the Contract Price, there shall be no overhead or profit adjustment to the Contract Price. Design -Builder shall maintain a documented, itemized accounting evidencing the expenses and savings associated with such changes. 9.4.2 if unit prices are set forth in the Contract Documents or are subsequently agreed to by the parties, but application of such unit prices will cause substantial inequity to Owner or Design -Builder because of differences in the character or quantity of such unit items as originally contemplated, such unit prices shall be equitably adjusted. 9.4.3 If Owner and Design -Builder disagree upon whether Design -Builder is entitled to be paid for any services required by Owner, or if there are any other disagreements over the scope of Work or proposed changes to the Work, Owner and Design -Builder shall resolve the disagreement pursuant to Article 10 hereof. As part of the negotiation process, Design - Builder shall furnish Owner with a good faith estimate of the costs to perform the disputed services in accordance with Owner's interpretations. If the parties are unable to agree and Owner expects Design -Builder to perform the services in DBIA Document No. 535 Standard Form of General Conditions Page 15 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America accordance with Owner's interpretations, Design - Builder shall proceed to perform the disputed services, conditioned upon Owner issuing a written order to Design -Builder (i) directing Design -Builder to proceed and (ii) specifying Owner's interpretation of the services that are to be performed. If this occurs, Design -Builder shall be entitled to submit in its Applications for Payment an amount equal to fifty percent (50%) of its reasonable estimated direct cost to perform the services, and Owner agrees to pay such amounts, with the express understanding that (i) such payment by Owner does not prejudice Owner's right to argue that it has no responsibility to pay for such services and (ii) receipt of such payment by Design -Builder does not prejudice Design -Builder's right to seek full payment of the disputed services if Owner's order is deemed to be a change to the Work. 9.5 Emergencies 9.5.1 In any emergency affecting the safety of persons and/or property, Design -Builder shall act, at its discretion, to prevent threatened damage, injury or loss. Any change in the Contract Price and/or Contract Time(s) on account of emergency work shall be determined as provided in this Article 9. Article 10 Contract Adjustments and Disputes 10.1 Requests for Contract Adjustments and Relief 10.1.1 If either Design -Builder or Owner believes that it is entitled to relief against the other for any event arising out of or related to the Work or Project, such party shall provide written notice to the other party of the basis for its claim for relief. Such notice shall, if possible, be made prior to incurring any cost or expense and in accordance with any specific notice requirements contained in applicable sections of these General Conditions of Contract. In the absence of any specific notice requirement, written notice shall be given within a reasonable time, not to exceed twenty-one (21) days, after the occurrence giving rise to the claim for relief or after the claiming party reasonably should have recognized the event or condition giving rise to the request, whichever is later. Such notice shall include sufficient information to advise the other party of the circumstances giving rise to the claim for relief, the specific contractual adjustment or relief requested and the basis of such request. 10.2 Dispute Avoidance and Resolution 10.2.1 The parties are fully committed to working with each other throughout the Project and agree to communicate regularly with each other at all times so as to avoid or minimize disputes or disagreements. If disputes or disagreements do arise, Design -Builder and Owner each commit to resolving such disputes or disagreements in an amicable, professional and expeditious manner so as to avoid unnecessary losses, delays and disruptions to the Work. 10.2.2 Design -Builder and Owner will first attempt to resolve disputes or disagreements at the field level through discussions between Design -Builder's Representative and Owner's Representative. 10.2.3 If a dispute or disagreement cannot be resolved through Design -Builder's Representative and Owner's Representative, Design -Builder's Senior Representative and Owner's Senior Representative, upon the request of either party, shall meet as soon as conveniently possible, but in no case later than thirty (30) days after such a request is made, to attempt to resolve such dispute or disagreement. Prior to any meetings between the Senior Representatives, the parties will exchange relevant information that will assist the parties in resolving their dispute or disagreement. 10.2.4 If after meeting the Senior Representatives determine that the dispute or disagreement cannot be resolved on terms satisfactory to both parties, the parties shall submit the dispute or disagreement to non -binding mediation. The mediation shall be conducted by a mutually agreeable impartial mediator, or if the parties cannot so agree, a mediator designated by the American Arbitration Association ("AAA") pursuant to its Construction Industry Mediation Rules. The mediation will be governed by and conducted pursuant to a mediation agreement negotiated by the parties or, if the parties cannot so agree, by procedures established by the mediator. 10.3 Arbitration 10.3.1 Any claims, disputes or controversies between the parties arising out of or relating to the DBIA Document No. 535 Standard Form of General Conditions Page 16 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America Agreement, or the breach thereof, which have not been resolved in accordance with the procedures set forth in Section 10.2 above shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the AAA then in effect, unless the parties mutually agree otherwise. 10.3.2 The award of the arbitrator(s) shall be final and binding upon the parties without the right of appeal to the courts. Judgment may be entered upon it in accordance with applicable law by any court having jurisdiction thereof. 10.3.3 Design -Builder and Owner expressly agree that any arbitration pursuant to this Section 10.3 may be joined or consolidated with any arbitration involving any other person or entity (i) necessary to resolve the claim, dispute or controversy, or (ii) substantially involved in or affected by such claim, dispute or controversy. Both Design -Builder and Owner will include appropriate provisions in all contracts they execute with other parties in connection with the Project to require such joinder or consolidation. 10.3.4 The prevailing party in any arbitration, or any other final, binding dispute proceeding upon which the parties may agree, shall be entitled to recover from the other party reasonable attorneys' fees and expenses incurred by the prevailing party. 10.4 Duty to Continue Performance 10.4.1 Unless provided to the contrary in the Contract Documents, Design -Builder shall continue to perform the Work and Owner shall continue to satisfy its payment obligations to Design -Builder, pending the final resolution of any dispute or disagreement between Design -Builder and Owner. 10.5 CONSEQUENTIAL DAMAGES 10.5.1 NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY (EXCEPT AS SET FORTH IN SECTION 10.5.2 BELOW), NEITHER DESIGN - BUILDER NOR OWNER SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL LOSSES OR DAMAGES, WHETHER ARISING IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO LOSSES OF USE, PROFITS, BUSINESS, REPUTATION OR FINANCING. 10.5.2 The consequential damages limitation set forth in Section 10.5.1 above is not intended to affect the payment of liquidated damages, if any, set forth in Article 5 of the Agreement, which both parties recognize has been established, in part, to reimburse Owner for some damages that might otherwise be deemed to be consequential. Article 11 Stop Work and Termination for Cause 11.1 Owner's Right to Stop Work 11.1.1 Owner may, without cause and for its convenience, order Design -Builder in writing to stop and suspend the Work. Such suspension shall not exceed sixty (60) consecutive days or aggregate more than ninety (90) days during the duration of the Project. 11.1.2 Design -Builder is entitled to seek an adjustment of the Contract Price and/or Contract Time(s) if its cost or time to perform the Work has been adversely impacted by any suspension of stoppage of work by Owner. 11.2 Owner's Right to Perform and Terminate for Cause 11.2.1 If Design -Builder persistently fails to (i) provide a sufficient number of skilled workers, (ii) supply the materials required by the Contract Documents, (iii) comply with applicable Legal Requirements, (iv) timely pay, without cause, Design Consultants or Subcontractors, (v) prosecute the Work with promptness and diligence to ensure that the Work is completed by the Contract Time(s), as such times may be adjusted, or (vi) perform material obligations under the Contract Documents, then Owner, in addition to any other rights and remedies provided in the Contract Documents or by law, shall have the rights set forth in Sections 11.2.2 and 11.2.3 below. 11.2.2 Upon the occurrence of an event set forth in Section 11.2.1 above, Owner may provide written notice to Design -Builder that it intends to terminate the Agreement unless the problem cited is cured, or commenced to be cured, within seven (7) days of Design -Builder's receipt of such notice. If Design- DBIA Document No. 535 Standard Form of General Conditions Page 17 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America Builder fails to cure, or reasonably commence to cure, such problem, then Owner may give a second written notice to Design -Builder of its intent to terminate within an additional seven (7) day period. If Design -Builder, within such second seven (7) day period, fails to cure, or reasonably commence to cure, such problem, then Owner may declare the Agreement terminated for default by providing written notice to Design -Builder of such declaration. 11.2.3 Upon declaring the Agreement terminated pursuant to Section 11.2.2 above, Owner may enter upon the premises and take possession, for the purpose of completing the Work, of all materials, equipment, scaffolds, tools, appliances and other items thereon, which have been purchased or provided for the performance of the Work, all of which Design -Builder hereby transfers, assigns and sets over to Owner for such purpose, and to employ any person or persons to complete the Work and provide all of the required labor, services, materials, equipment and other items. In the event of such termination, Design -Builder shall not be entitled to receive any further payments under the Contract Documents until the Work shall be finally completed in accordance with the Contract Documents. At such time, if the unpaid balance of the Contract Price exceeds the cost and expense incurred by Owner in completing the Work, such excess shall be paid by Owner to Design -Builder. Notwithstanding the preceding sentence, if the Agreement establishes a Guaranteed Maximum Price, Design - Builder will only be entitled to be paid for Work performed prior to its default. If Owner's cost and expense of completing the Work exceeds the unpaid balance of the Contract Price, then Design - Builder shall be obligated to pay the difference to Owner. Such costs and expense shall include not only the cost of completing the Work, but also losses, damages, costs and expense, including attorneys' fees and expenses, incurred by Owner in connection with the reprocurement and defense of claims arising from Design -Builder's default, subject to the waiver of consequential damages set forth in Section 10.5 hereof. 11.2.4 If Owner improperly terminates the Agreement for cause, the termination for cause will be converted to a termination for convenience in accordance with the provisions of Article 8 of the Agreement. 11.3 Design -Builder's Right to Stop Work 11.3.1 Design -Builder may, in addition to any other rights afforded under the Contract Documents or at law, stop work for the following reasons: .1 Owner's failure to provide financial assurances as required under Section 3.3 hereof; or .2 Owner's failure to pay amounts properly due under Design -Builder's Application for Payment. 11.3.2 Should any of the events set forth in Section 11.3.1 above occur, Design -Builder has the right to provide Owner with written notice that Design - Builder will stop work unless said event is cured within seven (7) days from Owner's receipt of Design -Builder's notice. If Owner does not cure the problem within such seven (7) day period, Design - Builder may stop work. In such case, Design - Builder shall be entitled to make a claim for adjustment to the Contract Price and Contract Time(s) to the extent it has been adversely impacted by such stoppage. 11.4 Design -Builder's Right to Terminate for Cause 11.4.1 Design -Builder, in addition to any other rights and remedies provided in the Contract Documents or by law, may terminate the Agreement for cause for the following reasons: .1 The Work has been stopped for sixty (60) consecutive days, or more than ninety (90) days during the duration of the Project, because of court order, any government authority having jurisdiction over the Work, or orders by Owner under Section 11.1.1 hereof, provided that such stoppages are not due to the acts or omissions of Design - Builder or anyone for whose acts Design -Builder may be responsible. .2 Owner's failure to provide Design - Builder with any information, permits or approvals that are Owner's responsibility under the Contract Documents which result in the Work being stopped for sixty (60) DBIA Document No. 535 Standard Form of General Conditions Page 18 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America consecutive days, or more than ninety (90) days during the duration of the Project, even though Owner has not ordered Design -Builder in writing to stop and suspend the Work pursuant to Section 11.1.1 hereof. .3 Owner's failure to cure the problems set forth in Section 11.3.1 above after Design -Builder has stopped the Work. 11.4.2 Upon the occurrence of an event set forth in Section 11.4.1 above, Design -Builder may provide written notice to Owner that it intends to terminate the Agreement unless the problem cited is cured, or commenced to be cured, within seven (7) days of Owner's receipt of such notice. If Owner fails to cure, or reasonably commence to cure, such problem, then Design -Builder may give a second written notice to Owner of its intent to terminate within an additional seven (7) day period. If Owner, within such second seven (7) day period, fails to cure, or reasonably commence to cure, such problem, then Design -Builder may declare the Agreement terminated for default by providing written notice to Owner of such declaration. In such case, Design -Builder shall be entitled to recover in the same manner as if Owner had terminated the Agreement for its convenience under Article 8 of the Agreement. 11.5 Bankruptcy of Owner or Design -Builder 11.5.1 If either Owner or Design -Builder institutes or has instituted against it a case under the United States Bankruptcy Code (such party being referred to as the "Bankrupt Party'), such event may impair or frustrate the Bankrupt Party's ability to perform its obligations under the Contract Documents. Accordingly, should such event occur: .1 The Bankrupt Party, its trustee or other successor, shall furnish, upon request of the non -Bankrupt Party, adequate assurance of the ability of the Bankrupt Party to perform all future material obligations under the Contract Documents, which assurances shall be provided within ten (10) days after receiving notice of the request; and .2 The Bankrupt Party shall file an appropriate action within the bankruptcy court to seek assumption or rejection of the Agreement within sixty (60) days of the institution of the bankruptcy filing and shall diligently prosecute such action. If the Bankrupt Party fails to comply with its foregoing obligations, the non -Bankrupt Party shall be entitled to request the bankruptcy court to reject the Agreement, declare the Agreement terminated and pursue any other recourse available to the non - Bankrupt Party under this Article 11. 11.5.2 The rights and remedies under Section 11.5.1 above shall not be deemed to limit the ability of the non -Bankrupt Party to seek any other rights and remedies provided by the Contract Documents or by law, including its ability to seek relief from any automatic stays under the United States Bankruptcy Code or the right of Design -Builder to stop Work under any applicable provision of these General Conditions of Contract. Article 12 Miscellaneous 12.1 Assignment 12.1.1 Neither Design -Builder nor Owner shall, without the written consent of the other assign, transfer or sublet any portion or part of the Work or the obligations required by the Contract Documents. 12.2 Successorship 12.2.1 Design -Builder and Owner intend that the provisions of the Contract Documents are binding upon the parties, their employees, agents, heirs, successors and assigns. 12.3 Governing Law 12.3.1 The Agreement and all Contract Documents shall be governed by the laws of the place of the Project, without giving effect to its conflict of law principles. 12.4 Severability 12.4.1 If any provision or any part of a provision of the Contract Documents shall be finally determined to be superseded, invalid, illegal, or otherwise DBIA Document No. 535 Standard Form of General Conditions Page 19 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America unenforceable pursuant to any applicable Legal Requirements, such determination shall not impair or otherwise affect the validity, legality, or enforceability of the remaining provision or parts of the provision of the Contract Documents, which shall remain in full force and effect as if the unenforceable provision or part were deleted. 12.5 No Waiver 12.5.1 The failure of either Design -Builder or Owner to insist, in any one or more instances, on the performance of any of the obligations required by the other under the Contract Documents shall not be construed as a waiver or relinquishment of such obligation or right with respect to future performance. 12.6 Headings 12.6.1 The headings used in these General Conditions of Contract, or any other Contract Document, are for ease of reference only and shall not in any way be construed to limit or alter the meaning of any provision. 12.7 Notice 12.7.1 Whenever the Contract Documents require that notice be provided to the other party, notice will be deemed to have been validly given (i) if delivered in person to the individual intended to receive such notice, (ii) four (4) days after being sent by registered or certified mail, postage prepaid to the address indicated in the Agreement or (iii) if transmitted by facsimile, by the time stated in a machine generated confirmation that notice was received at the facsimile number of the intended recipient. 12.8 Amendments 12.8.1 The Contract Documents may not be changed, altered, or amended in any way except in writing signed by a duly authorized representative of each party. DBIA Document No. 535 Standard Form of General Conditions Page 20 of Contract Between Owner and Design -Builder 1998 Design -Build Institute of America SUPPLEMENTARY CONDITIONS TO THE GENERAL CONDITIONS OF THE CONTRCT CLP Project No 1. Delete Paragraph 5.2 "Owner's Liability Insurance" from DBIA Document No. 535. Standanl Form C a*ions of C.orvact Betueen Ouner and Des igrEBudder, in its entirety. 1A. Delete Paragraph 5.3 "Owner's Property Insurance" from DBIA Document No. 535. Standani Form Conditions of Contract Betucen Ounerand DesigrtBudder, in its entirety and replace. 5.3 Owner's Property Insurance 5.3.1 Unless otherwise provided in the Contract Documents, Design -Builder shall procure and maintain from insurance companies authorized to do business in the state in which the Project is located property insurance upon the entire Project to the full insurable value of the Project, including professional fees, overtime premiums and all other expenses incurred to replace or repair the insured property. The property insurance obtained by Desian-Builder _shall include as additional insureds the interests of Owner, Design -Builder, Design Consultants, Subcontractors and Sub -Subcontractors, and shall insure against the perils of fire and extended coverage, theft, vandalism, malicious mischief, collapse, flood, earthquake, debris removal and other perils or causes of loss as called for in the Contract Documents. The property insurance shall include physical loss or damage to the Work, including materials and equipment in transit, at the Site or at another location as may be indicated in Design -Builder's Application for Payment and approved by Owner. 5.3.2 Intentionally On tt& 5.3.3 Prior to Design -Builder commencing any Work, Design -Builder shall provide Owner with certificates evidencing that (i) all Design -Builder's insurance obligations required by the Contract Documents are in full force and in effect and will remain in effect until Design -Builder has completed all of the Work and has received final payment from Owner and (u) no insurance coverage will be canceled, renewal refused, or materially changed unless at least thirty (30) days prior written notice is given to Design -Budder. Design -Builder's property insurance shall not lapse or be canceled if Owner occupies a portion of the Work pursuant to Section 6.6.3 hereof. Owner shall provide Design -Builder with the necessary endorsements from the insurance company prior to occupying a portion of the Work. 5.3.4 Any loss covered under Design -Builder's property insurance shall be adjusted with Owner and Design -Builder and made payable to both of them as trustees for the insureds as their interests may appear. 5.3.5 Owner and Design -Builder waive against each other and Owner's separate contractors, Design Consultants, Subcontractors, agents and employees of each and all of them, all damages covered by property insurance provided herein, except such rights as they may have to the proceeds of such insurance. Design -Builder and Owner shall, where appropriate, require similar waivers of subrogation from Owner's separate contractors, Design Consultants and Subcontractors and shall require each of them to include similar waivers in their contracts. 2. The following shall replace Articles 10.2, "Dispute Avoidance and Resolution", and 10.3 "Arbitration" of DBIA Document No. 535, Standani Form of General C.onditiorts of Contract Bdvwn ourerr and Design Builder in their entirety' 10.2 DISPUTE RESOLUTION, METHODS AND PROCEDURES: OWNER'S REPRESENTATIVE will be the initial interpreter of the requirements of the Contract Documents and judge of the acceptability of the Work thereunder, claims, disputes and other matters relating to the acceptability of the Work or the interpretation of the requirements of the Contract Documents pertaining to the performance and furnishing of the Work in respect of changes in the Contract Price or Contract Times will be referred initially to OWNER'S REPRESENTATIVE in writing with a request for a formal decision in accordance with this paragraph. Written notice of each such claim, dispute, or other matter will be delivered by the claimant to the other party of the Agreement promptly (but in no event later than thirty [30] days) after the start of the occurrence or event giving rise thereto, and written supporting data will submitted to OWNER'S REPRESENTATIVE and the other party within forty-five (45) days after start of such occurrence or event unless OWNER'S REPRESENTATIVE allows an additional period of time for the submission of additional or more accurate data in support of such claim, dispute or other matter. The opposing part shall submit any response to OWNER'S REPRESENTATIVE and the claimant within thirty (30) days after receipt of the claimant's last submittal (unless OWNER'S REPRESENTATIVE allows additional time). OWNER'S REPRESENTATIVE will render a formal decision in writing within thirty (30) days after receipt of the opposing party's submittal, if any, in accordance with this paragraph. The OWNER'S REPRESENTATIVE'S rendering of a formal decision shall be a condition precedent to further disputer resolution actions. The general process for dispute resolution shall be: ■ OWNER'S REPRESENTATIVE renders a decision ■ Senior representatives meet to resolve further dispute ■ Mediation ■ Non -Jury Trial 10.2.1 CONFERENCE BETWEEN SENIOR REPRESENTATIVES: Subsequent to the decision by the OWNER'S REPRESENTATIVE, the disputing party shall give the other party written notice of appeal of the dispute including the OWNER'S REPRESENTATIVE. Within ten (10) days after receipt of said notice, the receiving parry shall submit to the other a written response. The notice and response shall include (a) a statement of each party's position and a summary of the evidence and arguments supporting its position, and (b) the name and title of the executive officers who will represent that party. The executive officers shall meet at a mutually acceptable time and place within twenty (20) days of the date of the disputing party's notice and thereafter as often as they reasonably deem necessary to exchange relevant information and to attempt to resolve the dispute. 10.2.2 MEDIATION: If the controversy or claim has not been resolved within thirty (30) days of the meeting of the Senior Representatives, the parties agree to settle the dispute by mediation administered by the American Arbitration Association under its Construction Industry Mediation Rules then in effect. The request may be made concurrently with the filing of a a lawsuit, but, in such event, mediation shall proceed in advance of litigation, which shall be stayed pending mediation for a period of sixty (60) days from the date of filing, unless stayed for a longer period by agreement of the parties. Request for mediation shall be filed in writing with the other party to the Contract and with the American Arbitration Association. The parties shall share the mediator's fee and any filing gees equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. 10.2.3 CLAIMS AND TIMELY ASSERTION OF CLAIMS: The party filing a notice to demand for mediation must assert in the demand all Claims then known to that parry on which mediation is permitted to be demanded. 10.3 NON -JURY TRIAL: 10.3.1 Any claims disputes or controversies between the parties arising out of or relating to the Agreement, or the breach thereof, which have not been resolved in accordance with the procedures set forth above shall be resolved through litigation. The parties stipulate that venue for any such proceedings shall be in the district courts Harris County, Texas. 10.3.2 IN THE EVENT THE PARTIES ARE FORCED TO LITIGATE THEIR DISPUTES, OWNER AND DESIGN -BUILDER. AGREE TO EACH WAIVE THEIR RIGHT TO A TRIAL BY JURY AND FURTHER AGREE THAT THE JUDGE SHALL BE THE SOLE FINDER OF FACT AND RULE ON THE LAW OF THE CASE, WITHOUT A JURY. 3. Replace Paragraph 9.2 of DBIA Document No. 535, Standdni Form cf Ger,eral Cofxlitibm qf Carnract Bwaem Ozmer and Design Builder; in their entirety with the f ollowing: Specifications furnished by the Owner as a part of the Request for Proposal package provided to Design -Builder establish a baseline level of quality for the construction. The specifications are not intended to limit the design or construction methods of the Design -Builder. The Design -Builder will produce Construction Documents, including new specifications, as a part of the design phase of the Design -Build process, which will supercede the Owner -furnished specifications. However, this does not exempt the Design -Builder from meeting the quality intent of the Owner - furnished specifications. Any criteria in the Owner -furnished specifications that is not required by the Design -Builder's design or Legal Requirements, will not be required by the Owner, and Design -Builder will not be required to issue a credit the owner for any such items or design. 4. Add the following in its entirety as Paragraph 2.2.2: 2.2.2 The building structure shall be designed and constructed for the Basic Wind Speed, corresponding to 3 second gust speed, of 150 mph, using Exposure 'C'. The building classification will be considered as, Category III. CITY OF LA PORTE, TEXAS PAYMENT BOND STATE OF TEXAS § COUNTY OF HARRIS § PAYMENT BOND Bond ##61BCSDT0995 KNOWN ALL MEN BY THESE PRESENTS: That Hale -Mills Construction, Ltd., of the City of Houston, County of Harris, and State of Texas, as principal, and Hartford Fire Insurance Company authorized under the laws of the State of Texas to act as surety on bonds for principals, are held and firmly bound unto City of La Porte, Texas as Obligee (Owner), in the penal sum of Nine Million Nine Hundred Ninety One Thousand Seven Hundred Fifty Eight Dollars ($9,991,758.00) for the payment whereof, the said Principal and Surety bind themselves, and their heirs, administrators, executors, successors and assigns, jointly and severally, by these presents: WHEREAS the Principal has entered into a certain written contract with the Owner, effective as of the f�day of November, 2005, (the "Contract') to commence and complete the construction of certain improvements described as follows: La Porte Police Department Building 3001 North 23rd Street LaPorte, Texas 77571 which Contract, including the Contract Documents as defined therein, is hereby referred to and made a part hereof as fully and to the same extent as if copied at length herein. NOW THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the said Principal shall pay all claimants supplying labor or material to it or a subcontractor in the prosecution of the Work provided for in said Contract, then, this obligation shall be void; otherwise to remain in full force and effect; PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of Chapter 2253 of the Texas Government Code as amended and all liabilities on this bond shall be determined in accordance with the provisions of said Statute to the same extent as if it were copied at length herein. Surety, for value received, stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract, or to the Work performed thereunder, or the plans, specifications, or drawings accompanying the same, shall in any way affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract, or to the Work to be performed thereunder. CITY OF LA PORTE, TEXAS PAYMENT BOND IN WITNESS WHE OF, the said Principal and Surety have signed and sealed this instrument this 1% day of � 05. Principal, Ltd. By: v v Title: it Pac r, General Partner, Pres. of PKP Mgmt., LLC Addre 413 ellaire Boulevard, Suite 210, Houston, Texas 77025 Tele one: 71) 665-1100 Fax: ( 71) 665-4944 r Surety, HartforjFi' ice Company By: 1 Title: Attorny-T'n-Fact Address: Housto , TX Telephone: (71 � 7,85-6785 Fax: (71 ) 785-8785 NOTICE: THE ADDRESS OF THE SURETY COMPANY TO WHICH ANY NOTICE OF CLAIM SHOULD BE SENT MAY BE OBTAINED FROM THE TEXAS DEPARTMENT OF INSURANCE BY CALLING ITS TOLL -FREE TELEPHONE NUMBER: 1-800-252-3439. CITY OF LA PORTE, TEXAS PERFORMANCE BOND STATE OF TEXAS § COUNTY OF HARRIS § PERFORMANCE BOND .Bond #61BCSDT0995 KNOWN ALL MEN BY THESE PRESENTS: That Hale -Mills Construction, Ltd of the City of Houston, County of Harris, and State of Texas, as principal, and Hartford Fire Insurance Company authorized under the laws of the State of Texas to act as surety on bonds for principals, are held and firmly bound unto City of La Porte, Texas as Obligee (Owner), in the penal sum of Nine Million Nine Hundred Ninety One Thousand Seven Hundred Fifty Eight Dollars ($9,991,758.00) for the payment whereof, the said Principal and Surety bind themselves, and their heirs, administrators, executors, successors and assigns, jointly and severally, by these presents: WHEREAS�he Principal has entered into a certain written contract with the Owner, effective as of the a day of November, 2005, (the "Contract") to commence and complete the construction of certain improvements described as follows: La Porte Police Department Building 3001 North 23rd Street LaPorte, Texas 77571 which Contract, including the Contract Documents as defined therein, is hereby referred to and made a part hereof as fully and to the same extent as if copied at length herein. NOW THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the said Principal shall faithfully perform said Contract Work and shall in all respects duly and faithfully perform all and singular the covenants, conditions and agreements in and by said Contract agreed and covenanted by the Principal to be performed according to said Contract and Contract Documents, then this obligation shall be void; otherwise to remain in full force and effect; PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of Chapter 2253 of the Texas Government Code as amended and all liabilities on this bond shall be determined in accordance with the provisions of said Statute to the same extent as if it were copied at length herein. Surety, for value received, stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract, or to the Work performed thereunder, or the plans, specifications, or drawings accompanying the same, shall in any way affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract, or to the Work to be performed thereunder. CITY OF LA PORTE, TEXAS PERFORMANCE BOND IN WITNESS WHERE F, the said Principal and Surety have signed and sealed this instrument this day ofj,40h,2 005. Principal: Hells By: _ Title: Ltd. , LLC rvuuiC�is: 4130 Bellaire Boulevard, Suite 210, Houston, Texas 77025 Telephone: ( 71) 665-1100 Fax: ( 713) 665-4944 Surety, Harford Fire Insurance Company By: W' Title: At orne-in-Fn: t Address: houston, r x Telephone: Vl1 785-6785 Fax: (713 785-8785 _ NOTICE: THE ADDRESS OF THE SURETY COMPANY TO WHICH ANY NOTICE OF CLAIM SHOULD BE SENT MAY BE OBTAINED FROM THE TEXAS DEPARTMENT OF INSURANCE BY CALLING ITS TOLL -FREE TELEPHONE NUMBER: 1-800-252-3439. HARTFORD FIRE INSURANCE COMPANY Hartford, Connecticut POWER OF ATTORNEY Know all men by these Presents, That HARTFORD FIRE INSURANCE COMPANY, a corporation duly organized under the laws of the State of Connecticut, and having its principal office in the City of Hartford, County of Hartford, State of Connecticut, does hereby make, constitute and appoint JIM HOWSE and/orJODI NEAL of HOUSTON, TEXAS its true and lawful Attorney(s)-in-Fact, with full power and authority to each of said Attorney(s)-in-Fact, in their separate capacity if more than one is named above, to sign, execute and acknowledge any and all bonds and undertakings and other writings obligatory in the nature thereof on behalf of the Company in its business of guaranteeing the fidelity of persons holding places of public or private trust; guaranteeing the performance of contracts other than insurance policies; guaranteeing the performance of insurance contracts where surety bonds are accepted by states and municipalities, and executing or guaranteeing bonds and undertakings required or permitted in all actions or proceedings or by law allowed, and to bind HARTFORD FIRE INSURANCE COMPANY thereby as fully and to the same extent as if such bonds and undertakings and other writings obligatory in the nature thereof were signed by an Executive Officer of HARTFORD FIRE INSURANCE COMPANY and sealed and attested by one other of such Officers, and hereby ratifies and confirms all that its said Attomey(s)-in-Fact may do in pursuance hereof. This Power of Attorney is granted under and by authority of the By -Laws of HARTFORD FIRE INSURANCE COMPANY, ("the Company") as amended by the Board of Directors at a meeting duly called and held on July 9, 1997, as follows: ARTICLE IV SECTION 7. The President or any Vice President or Assistant Vice -President, acting with any Secretary or Assistant Secretary shall have power and authority to sign and execute and attach the seal of the Company to bonds and undertakings, recongnizances, contracts of indemnity and other writings obligatory in the nature thereof, and such instruments so signed and executed, with or without the common seal, shall be valid and binding upon the Company. SECTION 8. The President or any Vice -President or any Assistant Vice President acting with any Secretary or Assistant Secretary, shall have power and authority to appoint, for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, one or more resident Vice Presidents, resident Assistant Secretaries and Attorneys -in -fact and at any time to remove any such resident Vice -President, resident Assistant Secretary, or Attorney -in -Fact, and revoke the power and authority given to him. Resolved, that the signatures of such Officers and the seal of the Company may be affixed to any such power of attorney or to any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by facsimile signatures and facsimile seal shall be valid and binding upon the Company in the future with respect to any bond or undertaking to which it is attached. In Witness Whereof, HARTFORD FIRE INSURANCE COMPANY has caused these presents to be signed by its Assistant Vice President, and its corporate seal to be hereto affixed, duly attested by its Secretary, this 15th day of September, 1997. Attest: HARTFORD FIRE INSURANCE COMPANY E*11E )'1 Richard A. Hermanson, Secretary STATE OF CONNECTICUT SS. COUNTY OF HARTFORD I John F. Burke, Assistant Vice President On this 15th day of September, A.D. 1997, before me personally came John F. Burke, to me known, who being by me duly sworn, did depose and say: that he resides in the County of Hartford, State of Connecticut; that he is the Assistant Vice -President of HARTFORD FIRE INSURANCE COMPANY, the corporation described in and which executed the above instrument; that he knows the seal of the said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order. STATE OF CONNECTICUT +tTMr +� !T" SS. h JeanH. Wo=iak COUNTY OF HARTFORD NotaayPublic CERTIFICATE MyCoxrunissionExpires June 30, 1999 I, the undersigned, Secretary of HARTFORD FIRE INSURANCE COMPANY, a Connecticut Corporation, DO HEREBY CERTIFY that the foregoing and attached POWER OF ATTORNEY remains in full force and has not been revoked; and furthermore, that Article IV, Sections 7 and 8 of the By -Laws of HARTFORD FIRE INSURANCE COMPANY, set forth in the Power of Attorney, are now in force. Signed and sealed at the City of Hartford. Dated the 23rd day of Novea ber Y42005 * .0 P'. '^rMn�Na`o Robert L. Post, Secretary Form S-3507-9 (HF) Printed in U.S.A. CSR TN DATE (MM/DD/YYYY) ACORD.. CERTIFICATE OF LIABILITY INSURANCE 3-CSR 11 23 05 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE The Transportation Group, Ltd. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 11111 Wilcrest Green, #325 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Houston TX 77042 Phone:713-785-6785 Fax:713-785-8785 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A: Colony Insurance Co. Hale -Mills Construction, Ltd.; INSURERB: Am Intl specialty Lines Ins Hale -Mills Construction, Inc. Attn: Phil Packer INsuRERc: AIG Nat'l Insurance Co. 4130 Bellaire Blvd., #210 INSURERD: Texas Mutual Ins. Co. Houston TX 77025 INSURER E: Westchester Surplus Lines Ins. COVFRAGFS THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IN LTR NSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE MM/DD/YY POLICY EXPIRATION DATE MM/DD/YY LIMITS GENERAL LIABILITY EACH OCCURRENCE $ 1 , 000 , 000 . A X X COMMERCIAL GENERAL LIABILITY CLAIMS MADE X� OCCUR GL122933 09/30/05 09/30/06 PREMISES(Eaoccurence) $100,000. MED EXP (Any one person) $ Excluded PERSONAL & ADV INJURY $ 1 , 000 , 000 . GENERAL AGGREGATE s2,000,000. GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG s2,000,000. 11 JECTIX POLICY PRO- LOC C i AUTOMOBILE LIABILITY ANY AUTO AIG3051411 09/30/05 09/30/06 COMBINED SINGLE LIMIT (Ea accident) $ 1 , 000 , 000 BODILY INJURY (Per person) $ ALL OWNED AUTOS SCHEDULED AUTOS X X BODILY INJURY (Per accident) $ HIRED AUTOS NON -OWNED AUTOS X PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ ANY AUTO $ AUTO ONLY: AGG EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $5,000,000. B X-1 OCCUR 1-1CLAIMSMADE BE9746188 09/30/05 09/30/06 AGGREGATE $5,000,000. $ DEDUCTIBLE $ RETENTION $ WORKERS COMPENSATION AND X TORY LIMITS ER D EMPLOYERS' LIABILITY I ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER MEMBER EXCLUDED? SBP0001041044 10/28/05 10/28/06 E.L. EACH ACCIDENT $ 1,000,000. E.L. DISEASE - EA EMPLOYEE $ 1 , 000 , 000 . If yes, describe under SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ 1 , 000 , 000 . OTHER E Builders' Risk FSD3594414AO02 03/30/05 03/30/06 Per Occr. $15,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Re: LaPorte Police Department Building, 3001 North 23rd St., LaPorte, TX 77571. Certificate Holder is included as an Additional Insured as respects General Liability and Waiver of Subrogation applies. Workers' Compensation Policy provides coverage for class code 8809 - Executive Officers. CERTIFICATE HOLDER CANCELLATION CITOLAP SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN City of LaPorte NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL Attn: Sherry IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR 604 W. Fairmont Parkway LaPorte, TX 77571 REPRESENTATIVES. n� rnnn� ino�I n ACnRn roRPCIRATInN 19RR 10 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: November 14. 2005 Requested By: Cynthia Alexander, AQ ►s nt City Manaaer Department: FINANCE Report: Resolution: XX Ordinance: Exhibits: Resolution 2005- Exhibits: Exhibits: Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: Amount Requested: N/A Budgeted Item: SUMMARY & RECOMMENDATION On February 2, 2002, the voters of La Porte passed a bond election authorizing the issuance of debt to complete certain capital projects. The City of LaPorte issued General Obligation Bonds for the following project: Police Headquarters up to $10,500,000 We are moving forward with further design and we recommend the City Council approve a resolution that allows the City to reimburse itself from future bond proceeds for expenditures that are made prior to the issuance of the debt. This is a position that we have taken on several other projects in the past as recommended by bond counsel and required by federal law. The attached resolutions give us the option to reimburse ourselves from future bond proceeds for certain costs associated with the above -mentioned projects. Action Required by Council: Approve resolutions declaring intention to reimburse certain expenditures with borrowing proceeds. Approved for City Council Ap-enda Debra B. Feazelle, City Manag Date f RESOLUTION NO.2005-� RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN EXPENDITURES WITH BORROWING PROCEEDS WHEREAS, the City of La Porte, Texas (the "Issuer") desires to pay expenditures in connection with the design, planning, acquisition, construction, equipping, and/or renovating the project or facilities described as the Police Department Headquarters project (the "Project"). WHEREAS, Article 717k-6, Vernon's Texas Civil Statutes, as amended ("Article 717k-6"), permits the Issuer to use the proceeds of obligations to reimburse the Issuer for costs attributable to the Project paid or incurred before the date of issuance of such obligations; and WHEREAS, the Issuer finds, considers, and declares that the reimbursement of the Issuer for the payment of such expenditures will be appropriate and consistent with the objectives of the Issuer's programs and, as such, chooses to declare its intention, in accordance with the provisions of Section 1.150-2 of the Treasury Regulations, to reimburse itself for such payments at such time as it issues obligations to finance the Project. NOW, THERFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section 1. This Resolution declares the intent of the Issuer to reimburse the expenditures for the Project with the proceed of obligations. The Issuer presently intends to reimburse the expenditure by incurring obligations issued under Texas law, the interest on which is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended. Section 2. The Issuer reasonably expects to incur debt, in one or more series of obligations, in an aggregate maximum principal amount now expected to be equal to $10,500,000 for the purpose of paying the costs of the Project. Section 3. The Issuer intends to reimburse the expenditures hereunder not later than 18 months after the date of the original expenditure is paid or the date the Project is placed in service or abandoned, but in no event more than three years after the original expenditure is paid unless the Project is a construction project for which the Issuer and a licensed architect or engineer have certified that at least five years are necessary to complete the Project in which event the maximum reimbursement period is five years after the date of the original expenditure. Section 4. The Issuer intends that this Resolution satisfy the official intent requirement set forth in Section 1.150-2 of the Treasury Regulations and evidences its intentions under Article 717k-6. Section 5. This resolution shall be liberally construed to evidence the intent of the Issuer to comply with state law and federal income tax law in the issuance of tax-exempt obligations for the Project. PASSED AND APPROVED this the 14`h day of November 2005. ATTEST lc, �/ City Secretary CITY OF LA PORTE, TEXAS Alton Porter, Mayor R 9 C 0IT"10 ity Attorney 12 z OL A City of La Porte U m rExwe Interoffice Memorandum To: Mayor and Council From: Debra Brooks Feazelle, City Manager Date: November 10, 2005 Subject: Agenda Supplement of 11-14-05 Workshop Item #12A In effort to not delay full agenda for action items, the agenda was finalized and copied for you on Wednesday, November 9, 2005. The workshop items, although in progress, had not been finalized and approved. The attached item is on Fiber Connections; discussing the options to resolve our issues of back- up, dependability and speed. Please place in your Council books behind #12A for a presentation by IT Manager, Al Owens, on Monday night. No formal action will be requested. General direction is necessary at this time. If you desire additional information, please advise. DBF:db Attachment ty of La Porte Memo IT Division To: Cynthia Alexander, Asst. City Manager Front Al Owens, IT Manager CC: Date: 11 /07/2005 Ref: Upgrade and Request for City Network Fiber Connections Ms. Alexander, I've completed evaluating and analazing our current network topology. It was discovered after Hurricane Rita and other abnormal incidents that our network suffered serious adversities for connectivity. I'm recommending the following actions be accepted to improve our network production and connection issues: Expedite the repairs to the radio equipment and have it support the IP phone systems, video cameras, and 5 of the locations on the LAN, with 4 locations (City Hall, FD, PW, Parks), supported by Fiber provided by a Communication Carrier or Cable Service provider such as Time Warner. Locate the main Fiber switch at Police Department for ease of system administration. The Carrier / Cable provider should be responsible for monitoring and managing all the Fiber connections and the main switch located at a City Facility. Speed would improve, the IT department would have a choice of moving four of the primary domain controllers to City Hall for ease of administration. • Immediately setup a redundant WAN connection that can be provided by the Communication Carrier or the Cable provider. During the analysis Time Warner appears to have the essential equipment and connectivity to provide us with a quality of service that the City of La Porte requires. Time Warner has waived all construction cost for installing, setting up and maintain the fiber connections. Time Warner has several fiber configurations with other public and private entities. These are some of the interest points that can be improved by installing fiber on our network: Network connectivity: • Redundant backup capability supplied through the cable company • Offsite monitoring from cable company (2417 monitoring) • Not dependant on network radios ( use as a 3'" backup redundancy) • Growth potential for future IT developments Internet connectivity: • Faster processing speed • Stand alone connection ( independent from school district) • Reliable connection • 24/7 monitoring and support for connection failures I know that we have been in a partnership with the LPISD school district with our internet services and we should continue the relationships with them except in an emergency capacity. It is my opinion this is a win - win situation for the city as well as a good business decision for Time -Warner. Please let me know if there is anything my office can do to assist you with any additional information. Fire Dept. Police Station ■ City of La Porte city I H-E I 50M ME TW IGW ivrvi rvic Public Internet CITY OF LA PORTE TECHNOLOGY FUND LEASE FEES FROM DIVISIONS Current Budget Actual Budget Estimated Projected 2003-04 2004-05 2004-05 2005-06 Fire Prevention 4,896 3,147 3,147 2,271 Fire Suppression 12,219 8,928 8,928 6,712 Emergency Medical Services 4,890 3,450 3,450 3,356 Police Administration 24,116 8,866 8,866 6,760 Police Patrol 60,116 20,681 20,681 18,441 Criminal Investigation 50,029 17,512 17,512 14,110 Support Services 13,369 4,358 4,358 5,398 Administration 9,786 6,597 6,597 5,979 Emergency Management 2,445 1,725 1,725 1,371 Human Resources 8,154 5,548 5,548 4,739 Municipal Court 19,649 11,660 11,660 8,448 Purchasing 6,528 4,196 4,196 3,028 City Secretary 9,780 6,900 6,900 5,484 Legal 1,632 1,049 1,049 757 City Council 3,252 2,704 2,704 1,842 Accounting 17,946 11,842 11,842 9,764 Tax 8,160 5,245 5,245 3,785 Public Works Administration 8,160 5,245 5,245 3,785 Streets 4,896 3,147 3,147 2,271 Residential Solidwaste 3,264 2,098 2,098 1,514 Parks Maintenance 3,264 2,098 2,098 2,128 Recreation 6,522 4,499 4,499 3,499 Special Services 5,703 4,126 4,126 3,356 Parks Administration 10,605 6,970 6,970 4,542 Planning & Engineering 25,482 25,519 25,519 18,930 GIS Division - - - 1,371 Inspections 11,424 7,343 7,343 6,527 General Fund 336,287 185,453 185,453 150,168 Water Distribution 3,258 2,401 2,401 1,985 Wastewater Collection 2,445 1,725 1,725 1,371 Wastewater Treatment 2,445 1,725 1,725 1,371 Utility Billing 16,405 14,220 14,220 16,340 Utility Fund 24,553 20,071 20,071 21,067 Sylvan Beach Pavilion 1,632 1,049 1,049 757 La Porte Area Water Authority 3,258 2,401 2,401 1,985 Management Info Systems 18,093 17,507 17,507 23,111 Vehicle Maintenance 8,967 6,224 6,224 4,970 Golf Course Club House 1,632 1,049 1,049 757 Downtown Revitalization - 1,049 1,049 757 TOTAL It:: 234,803 234,803 203,472 Fiber Optic Lines Cost per Year (3 Years) Fire Prevention Fire Suppression Emergency Medical Services Police Administration Police Patrol Criminal Investigation Support Services Administration Emergency Management Human Resources Municipal Court Purchasing City Secretary Legal City Council Accounting Tax Public Works Administration Streets Residential Solidwaste Parks Maintenance Recreation Special Services Parks Administration Planning & Engineering GIS Division Inspections General Fund Total Water Distribution Wastewater Collection Wastewater Treatment Utility Billing Utility Fund Total Sylvan Beach Pavilion Fund La Porte Area Water Authority Technology Fund Vehicle Maintenance Fund Golf Course Fund Hotel/Motel Fund TOTAL CITY OF LA PORTE TECHNOLOGY FUND $ 116,993 Projected Annual 2005-06 2005-06 Spread Recalculated Lease Fees to Divisions Lease Fees 2,271 1.12% 1,306 3,577 6,712 3.30% 3,859 10,571 3,356 1.65% 1,930 5,286 6,760 3.32% 3,887 10,647 18,441 9.06% 10,603 29,044 14,110 6.93% 8,113 22,223 5,398 2.65% 3,104 8,502 5,979 2.94% 3,438 9,417 1,371 0.67% 788 2,159 4,739 2.33% 2,725 7,464 8,448 4.15% 4,857 13,305 3,028 1.49% 1,741 4,769 5,484 2.70% 3,153 8,637 757 0.37% 435 1,192 1,842 0.91% 1,059 2,901 9,764 4.80% 5,614 15,378 3,785 1.86% 2,176 5,961 3,785 1.861/6 2,176 5,961 2,271 1.12% 1,306 3,577 1,514 0.74% 871 2,385 2,128 1.05% 1,224 3,352 3,499 1.72% 2,012 5,511 3,356 1.65% 1,930 5,286 4,542 2.23% 2,612 7,154 19,930 9.30% 10,884 29,814 1,371 0.67% 788 2,159 6,527 3.21% 3,753 10,280 150,168 73.80% 86,344 236,512 1,985 0.98% 1,141 3,126 1,371 0.67% 788 2,159 1,371 0.67% 788 2,159 16,340 8.03% 9,395 25,735 21,067 10.35% 12,113 33,180 757 0.37% 435 1,192 1,985 0.98% 1,141 3,126 23,111 11.36% 13,288 36,399 4,870 2.39% 2,800 7,670 757 0.37% 435 1,192 757 0.37% 435 1192 �,472�10�09,.J7�116,9�93�320�,465� Blank Page 1 of 2 Owens, Al From: Six, Tony [tony.six@twcable.com] Sent: Wednesday, October 05, 2005 3:19 PM To: Owens, Al Subject: Time Warner Al, Per our discussion, the following is what Time Warner proposes to the City of Laporte. Option 1 Single Path Original Proposal $9768.00 Second Proposal (Discounted) $6045.00 Savings $3723.00 Option 2 Diverse Path* Original Proposal $12362.00 Second Proposal (Discounted) $ 7279.80 Savings $5082.20 Option 3 Redundant Path* Original Proposal $14956.00 Second Proposal (Discounted) $ 9749.40 Savings $ 5206.60 *Diverse Path Two paths coming to the main location from two different directions from the same hub site. If there is a fiber cut the connection will automatically reroute itself to the second path. *Redundant Path Two paths coming to the main location from two different directions and from two different hub sites. If there is a fiber cut or one of the hub sites were to fail the connection will automatically rerouted to the second hub site. As we add Diverse and Redundant paths the construction cost is tremendously effected, as well as the cost for the equipment. At this point I feel confident that Time Warner will be able to absorb these additional costs. I will confirm this by the end of the week. Thank you, Tony Six Enterprise Account Manager Time Warner Cable -Houston Business Solutions 11/10/2005 i -)&� Consultant Report October 14, 2005 Mr. Alfred Owens Manager, Information Technology 604 Fairmount Parkway LaPorte, Texas, 77571 Mr. Owens Thanks for allowing us the opportunity to serve your city. We look forward to a continued relationship. I would like to re- address our understanding of your current situation. We have listed the observations below: • La Porte is currently using the Radio site to site transmission as it primary infrastructure to support the Local Area Network (LAN), Wide Area Network (WAN) Infrastructure, IP base Phone systems and Video cameras. • La Porte has 9 locations outside of City Hall that utilize the Radio infrastructure for LAN and WAN connectivity with a Primary (PDC) and Back up (BDC) Windows base Domain Server at each site • The primary WAN connection is managed by the local School District for the School District and for all City offices. • The City has unlimited use of the Radio infrastructure for WAN and LAN connections for the next three year at no cost. • In the past couple of weeks some of the Radio equipment was damaged during a storm bringing down a segment of the Radio LAN. • Virtual Private Network (VPN"S) connections were established for the 3 locations that were impacted. The VPN' S were created utilizing the Radio bandwidth that remained. • The newly created VPN' S placed stress on the Radio equipment ability to transmit enough data at a speed that would allow Active Directory Services (ADS) to replicate and synchronize. Thus causing the lost of MS -Exchange services. P.O. box 850175 Richardson, TX 75085 Ph:214-883-3818 Fax:253-423-0739 Consultant Report • Working with your team we were able to restore MS -Exchange services Tuesday. • At this time La Porte does not have a redundant LAN or WAN infrastructure. Potential Solutions As we discussed in great detail, listed below are potential solutions that can ease the pain and some of its associated risk. • Repair the Radio equipment and continue operating with the same structure. • Repair the Radio equipment and have it support the LAN and obtain services from a Communication Carrier such as SBC, Verizon, Sprint etc to provide a WAN connection and Internet Service Provider (ISP). The Carrier would monitor and maintain the Connection up to the primary switch located in a City facility. This places control of the WAN in the hands of City Staff, however, the local School District would remain in control of the primary WAN connection for the Radio system. In this scenario the Radio WAN could be configured to serve as a redundant WAN connection. No impact to the IP base phone system, video cameras and LAN connections. • Repair the Radio equipment and have it support the IP phone systems, video cameras and 5 of the locations on the LAN with 4 locations (City Hall, FD, PW, Parks) being support by Fiber provide by a Communication Carrier or Cable Service provider such as Time Warner. Located the main Fiber switch in City Hall for ease of system administration. The Carrier / Cable provider should be responsible for monitoring and managing all the Fiber connections and the main switch located at a City Facility. Speed would improve, the IT department would have a choice of moving four of the PDC's to City Hall for ease of administration. • Repair the Radio equipment and have it support the IP phone systems and video cameras. Configure the Radio LAN and WAN to server as a redundant system in a hot or cold state. Connect 4 sites (City Hall, FD, PW, and Parks) by Fiber provided by a Communication Carrier or Cable Service provider such as Time Warner. Located the main Fiber switch in a City facility for ease of system administration. Connect the remain site by DSL routing the end points to the primary connection in the selected City facility or to one or more of the site connect by Fiber. The Carrier / Cable provide should be responsible for P.O. box 850175 Richardson, TX 75085 Ph:214-883-3818 Fax:253-423-0739 rig EEL1 monitoring and managing all the Fiber connections and the main switch at a City facility. DSL should also be managed by the Communication carrier. Speed would improve; IT department would have the choice of moving 9 of the PDC's to City Hall for ease of system administration. • Repair the Radio equipment and have it support the IP phone systems and Video cameras. Configure the Radio LAN and WAN in either a hot or cold state to serve as a redundant system to the Fiber connections. Create the LAN and WAN with Fiber going to all locations. The Carrier or Cable provider would monitor all connections from the various city locations to the primary City facility which contains the main switch. This may be the most expensive solution however; it is the most stable and fastest form of data transmission of all the potential solutions discussed. • A redundant WAN connection can be provided by the Communication Carrier or the Cable provider for the last three suggested solutions. • If a Fiber solution is implemented, plans can be laid to utilize the Radio LAN to provide limited hot spots for internet connectivity. Appropriated security must be in place. If any of the Radio LAN is use to conducted City business, strong security must be implemented in order to protect City staff that will utilize the Radio LAN in there day to day support of city activities. In short security requirements will depend on which role the Radio LAN and WAN will play in support of the City's daily operations. Mr. Owens, you should continues with your efforts to locate a Cable Providers or Communications Carriers to implement a full or partial base fiber WAN and LAN. This approach offers the City a number of benefits just to mention a few: • A more secure means of transmitting data and information. • Additional services can be offer the citizen via the Radio LAN / WAN. • Limited Internet Hot spots • Redundant LAN • Redundant WAN connection • Consolidation of the PDC's • Improved data transmission speeds • Managed monitoring of the fiber connections • Managed monitoring of the fiber switches P.O. box 850175 Richardson, TX 75085 Ph:214-883-3818 Fax:253-423-0739 il Consultant Report As you explain this to your management team and city council members, have them draw a circle in center of a sheet of paper call it main City connection point, then draw 4 circles in a evenly spread format around the paper one inch out from the center circle labeled primary city facility connection point. Then label the 4 circle (Fire department, City Hall, Public Works and Parks). Then have them draw straight line from each circle to City primary connection point. Next draw 5 circles one inch further out from the 4 previously drawn circle in an evenly spread format around the paper. Label the 5 circles with the remaining city location. Then Draw a straight line from each circle to the primary City connection point. With all points ended in the primary City connection point via Fiber connections it reduces substantially potential LAN problems. Also the solutions provide support in determining the nature of any problems and resolution of those challenges. We look forward to serving the City LaPorte in the near future. Sincerely James Phillips COO P.O. box 850175 Richardson, TX 75085 Ph:214-883-3818 Fax:253-423-0739 Ethernet Fiber Point to Point Dedicated Internet Access Proposal Submitted to: Al Owens City of LaPorte Submitted by: Tony Six Account Manager Time Warner Cable, Houston September 6, 2005 CONFIDENTIAL 1A >w8is t3ua€iness §ot"aans Executive Summary I would like to take this opportunity to thank you for considering Time Warner Cable Business Solutions as a potential provider of a Point to Point Fiber Ethernet Connection, as well as a Dedicated Internet Access Connection. In choosing Time Warner Cable Business Solutions as your provider, you will have the assurance that you will be partnered with a vendor that blends state of the art technology with world class customer support. Our experience as a company allows for us to provide reliable, flexible services that are aggressively priced. Our experience with broadband allows you to focus on core issues and applications, not communications transport. Time Warner Point -to -Point and Dedicated Internet Access Features and Benefits include: • Flexibility to scale from 1 Mbps, to 100Mbps and back down again, with one phone call to us. This means you pay for what you use, no more, no less. • These connections are not shared. You get 100% of subscribed Mbps. • Toll free technical support available 24x7. This support group is dedicated to Business Class customers, separate from support for our residential customers. • Reliable Technology: Part of the award -winning family of Dedicated Access services from Time Warner Cable • Trusted Business Partner: Long-term stability of Time Warner Cable • A Proactively Managed Network. Please let me know if you have any questions. Regards, Tony Six Account Manager- Business Solutions Time Warner Cable -Houston 0: 713-462-1900 Ext.2714 F: 713-895-2697 Tony.six(a,twcable.com Highly Confidential & Proprietary Information Page 2 www.twcbusinesssolutions.com Corporate Overview About TWC Business Solutions Business Class TWC Business Solutions, a service of Time Warner Cable, is the nations' number one commercial cable broadband service provider. The suite of broadband solutions enables customers to continuously capitalize on the potential of the TWC self healing backbone in turning a necessary communication medium into a strategic business tool. TWC Business Solutions offers broadband and Internet solutions to commercial customers in major U.S. urban and suburban areas. Beginning in 1998, the TWC Business Solutions service is delivered to customers through a combination of fiber-optic national and regional networks and Time Warner Cable's hybrid fiber - coaxial (HFC) infrastructure. TWC Business Solutions Business Class is primarily offered through Time Warner Cable systems, although select Advanced Newhouse systems also provide the service in over 40 markets nationwide. The Time Warner Cable Broadband division employs over 400 employees nationwide. The Time Warner Cable Broadband division operates numerous Regional Data Centers across the country, and has regional offices in Herndon, VA and Charlotte, NC. The corporate facility in Herndon houses a state-of-the-art Network Operations Center and Quality Assurance/Engineering Labs. About Time Warner Cable A pioneer in the cable industry, Time Warner Cable owns and manages the most advanced, best - clustered cable television operations in the country, with over 93% of its approximately 11 million customers in systems serving 100,000 people or more. Through technological innovation, a fully upgraded fiber -based network and a commitment to increasing choice and value for our customers, Time Warner Cable brings the digital age into America's communities and is transforming the way Americans receive information and entertainment. • Time Warner Cable service passes more than 18 million U.S. homes, and serves nearly 11 million customers Highly Confidential & Proprietary Information Page 3 ME W,ARNER <aE�rai�ess:;�oiviic�ns' • Time Warner Cable currently serves customers in the following 27 states: Alabama, Arkansas, California, Florida, Georgia, Hawaii, Indiana, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, North Carolina, Nebraska, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Wisconsin and West Virginia • The number of Time Warner Cable digital video customers is expanding rapidly and reached 3.7 million at year-end (2002), reflecting high customer satisfaction with this popular service • The ten largest Time Warner Cable operating divisions and the number of customers served are: New York City 1,188,000 Houston 701,000 Raleigh 462,000 Western Ohio 427,000 Milwaukee 414,000 Northeast Ohio 398,000 Charlotte 389,000 Hawaii 383,000 Greensboro 352,000 Los Angeles 347,000 *Figures as of year-end 2002 • Time Warner Cable employs nearly 30,000 people across the U.S. • Time Warner Cable's corporate offices are located in Stamford, CT. • Time Warner Cable Inc. is a Delaware corporation and is the successor to the businesses of American Television and Communications Corp. and Warner Cable • Time Warner Cable Inc. is a subsidiary of Time Warner Inc. (NYSE: TWX), formerly known as AOL Time Warner Inc., which was formed in 2001 through the merger of America Online Inc. and the original Time Warner Inc. (now known as Historic TW Inc.). The Time Warner family of companies includes America Online, Warner Bros., HBO, The Warner Music Group, CNN, Turner Broadcasting Systems and Time Inc. magazines. Corporate Headquarters: TWC Business Solutions Commercial Services Corp. Offices 13241 Woodland Road Herndon, Virginia 20171 Time Warner Cable Inc. Corporate Division 290 Harbor Drive Stamford, Connecticut 06902 Highly Confidential & Proprietary Information Page 4 Srii�titians- Corporate Overview cont. Financials Time Warner financials for 2003 can be found at: http://www.timewamer.com/investors Diversity As an equal opportunity/affirmative action employer, it is the policy of Time Warner Cable to employ, retain, promote, terminate, and otherwise treat all employees and job applicants on the basis of merit, qualifications and competence. This policy is enforced without regard to any individual's race, sex, age, color, creed, religion, national origin, and disability or veteran status. This policy also includes job assignments, transfers, wage reviews and equal treatment in and access to company paid benefits. Sustainability Time Warner Cable places a high priority on good corporate citizenship and public service. By reaching out to local governments, educational institutions and non-profit organizations in the communities where we do business, we are able to develop and provide programs, services and resources that are tailored to benefit customers and communities alike. Underlying our company's commitment to local community service is the scope and reach of our national grassroots cable network. With nearly 11 million customers, Time Warner Cable serves - and is active in - more than 3,100 communities in 27 states. Time Warner Cable's main focus always has been to provide free educational support to those communities. Through initiatives such as Cable in the Classroom and Cable's High -Speed Education Connection, we use our vast network to deliver the resources of cable programming and technology, including broadband Internet access, at no cost to schools. Partnerships with national organizations, like the National Urban League and Boys & Girls Clubs of America, allow us to support and enhance the effectiveness of existing service organizations, extending the benefits of our technology to a broader, more inclusive audience. And we constantly are working to identify new areas of need that can be helped by tapping into Time Warner Cable's local and national presence. Adopt -A -School initiatives, support for local symphony, art and dance organizations, youth after school and mentoring activities, environmental concerns and economic development are just some of the areas that are covered by this emphasis on local community involvement. Highly Confidential & Proprietary Information Page 5 IAMME CAB is JE� , Extending the impact of Time Warner Cable's commitment to its communities is the energetic and enthusiastic contribution of our employees. Across the country, Time Warner Cable employees are active volunteers in a wide variety of programs, devoting countless hours of personal time for community service projects. Time Warner's literacy initiative, Time to Read, is the nation's largest corporate -sponsored volunteer program of its kind; and Time Warner Cable employees account for the greatest number of participants among the company's business units. Time Warner Cable also supports individual, non company -related projects that benefit local communities through our employees' personal involvement. Four times each year, Time Warner's ECHO (Employees Caring and Helping Others) program awards grants ranging from $500 to $3,000 to fund such varied non-profit local initiatives as pet adoption services, refurbishment of youth sports facilities, community environmental projects and equipment for day care facilities, to name just a few. Time Warner Cable's community activism embraces corporate philanthropy as well. Each year TWC donates several million dollars directly to non-profit organizations. Greater still are the tens of millions of dollars more of in -kind contributions that are provided through activities such as the production and distribution of public service announcements. These donations support both local initiatives and national non-profit organizations. And our educational outreach programs are underwritten by more than $3 million in annual funding across the divisions. At Time Warner Cable, community service is more than just a buzzword. It's woven into the fabric of who we are. And the very nature of our business offers a unique and powerful platform with which to serve our communities. We will keep building on that commitment as our products; services and technology continue to evolve. Houston specific charities include: Arts • Houston Symphony • Houston Grand Opera • Alley Theatre • Society of Performing Arts • Theatre Under the Stars Education • Cable in the Classroom • Save the Music • Time to Read • Project Safeside • Communities in School Highly Confidential & Proprietary Information Page 6 Pricing Bandwidth scaling up or down requires a customer to remain at that level for 30 days. Pricing is based on a 3 or 5 year agreement, Dedicated Internet Access: Circuit Interface Subscription rate List MRR 10/100Mb s 1 $ 649.00 10/100Mb s 2 $ 799.00 10/100Mb s 3 949.00 10/100Mb s 4 1,074.00 10/100Mb s 5 $ 1,169.00 10/100Mb s 6 $ 1,249.00 10/100Mb s 7 1,319.00 10/100Mb s 8 $ 1,379.00 10/100Mb s 9 $ 1,429.00 10/100Mb s 10--$ 1,500.00 10/100Mb s 20 $ 2,900.00 10/100Mb s 30 $ 4,200.00 10/100Mb s 40 5,400.00 10/100Mb s 50 $ 6,500.00 10/100Mb s 60 $ 7,500.00 10/100Mb s 70 8,400.00 10/100Mb s 80 $ 9,200.00 10/100Mb s 90 $ 9,900.00 10/100Mb s 100 $10,500.00 Highly Confidential & Proprietary Information Page 7 Circuit Interface Subscription rate List MRR 10/100Mb s 1 $210.00 10/100Mb s 2 $360.00 10/100Mb s 3 $518.00 10/100Mb s 4 $666.00 10/100Mb s 5 $713.00 10/100Mb s 6 $855.00 10/100Mb s 7 $995.00 10/100Mb s 8 $1045.00 10/100Mb s 9 $1095.00 10/100Mb s 10 $1145.00 10/-100M_b - s __ _. _ _20._ - -- 1800:00 - - 10/100Mb s 30 $2520.00 10/100Mb s 40 $3200.00 10/100Mb s 50 3688.00 10/100Mb s 60 $4279.00 10/100Mb s 70 $4848.00 10/100Mb s 80 $5240.00 10/100Mb s 90 $5738.00 10/100Mb s 100 $6375.00 Regards, Tony Six Account Manager -Business Solutions Time Warner Cable -Houston 0: 713-462-1900 Ext. 2714 F: 713-895-2697 Tony.. six@twcable. corn www.twebusinesssolutions.com Highly Confidential & Proprietary Information Page 8 Q 0 0 0 a� 0 CL � N U J 0 What is needed to continue Quality of Service (QOS)? . Fiber Optic . Technology that uses glass threads to transmit data . Messages modulated onto light waves Fiber Optics Benefits • Travel with greater bandwidth • More data carried quickly • Less susceptible to interference • Transmitted in a digital rather than analog format What can Fiber do for the City of La Porte • Improve our connectivity issues . Become less dependent on other entities for its connections • Improve speed of information transfer • Provide growth potential for future IT developments Who can provide the QOS? Time Warner • Has the equipment and connectivity to provide the City o the services we require f La Porte with . Waving ALL construction, setup,& installation costs for this project . Provide: .24/7 monitoring operation *Redundancy backup to another location in case of a communication failure at our La Porte hub. Layout P";I nrMPLs cam_ La - — - :t] Port 8 Panco Station T low rr(r� Public tnwMat What other advantages can Fiber offer our IT Professionals? • Better support • Maintenance on IP phones . Efficient video streaming on IP cameras � Performance enhancement for remote administration on computers for maintenance and diagnostics . Assist in establishing better communication with the LPISD What is needed to make this project happen? . The IT departmental expense budget has been declining over the past 3 years, along with this, there has been an increase in IT fund balance which has produced savings • The cost of this fiber project can be absorbed bv an increase on our lease fees ll) M N Lr) N O r**% lo 41' 00 41- d' � d- d- M O � 01 M O N 0 U �O L OQ O O O 0 O O O L. N N N rl Our Purpose for the Fiber • Provide the City of La Porte employees and our citizens with an outstanding service that extend beyond the basic capabilities of distributing electronic information . Become a fore front leader in achieving information with all the latest tools that are available with cost saving ideas in mind. c 0 _ }, �`J Message Page 1 of 1 Feazelle, Debra From: Feazelle, Debra Sent: Friday, November 11, 2005 6:48 PM To: Rigby, Louis; Beasley, Barry; Clausen, Mike; Clausen, Mike; Ebow, Howard; Engelken, Chuck; Gillett, Martha; Griffiths, Peter; Griffiths, Peter; Harris, Sharon; Moser, Tommy; Mosteit, Mike; Porter, Alton; Porter, Alton Cc: Alexander, Cynthia; Joems, John; Swanagan, Robert Subject: agenda item on health care please note that the backup for the workshop item 12b is in your box at 7.thx. song for the delay.d 11/11/2005 Employee & Retiree Health Care Plan City Council Meeting November 14, 2005 CD CL 0 0) on CD -v PAL A CD cn c� 0 CD CL c CD 0 3 w �m om .. 1�' 0 m 0 _ _ 3 0 cz m C. c 0 o' T mn 0 0 CD U) cn m 00 CD Ri m 0 _ 0' CD CD cn CL ca CD. ❖ Expenditure Claims History ❖FY 2004 Actual $3.3 ,4*•FY 2005 Budget $3.0 ❖FY 2005 Estimate $2.5 ❖Revised Estimate 2005 $2.9 ❖Adopted 2006 $2.7 Budget - Comments ❖ Revised '05 made in July w/June data ❖ Three months unknown ❖ Staff's projections verified by consultant ❖ Verifying no reimburse.due from stop loss ❖ Not audited data — verifying •: Need to also revise '06 (if correct) ❖ Need to rebuild fund balance AM r^ 4 61, M4 17C Mt UP I M- I j TCO ❖ Adopted Budget `05 ❖Rev. Est. - $2.7 million ❖ Exp. Est. - $2.9 million *.**Est. Usage — ($221 thousand) ❖ Revised Estimates `05 :•Rev. Est. - $2.6 million ❖Exp. Est. - $3.2 million ❖Est. Usage — ($625 thousand) ❖ Variance ($404) ❖Fund Bal. Est. 9-30-05 $612 thousand ❖Goal - $800 thousand ❖Below working capital policy Policy Renewals *:• Specters — Vision, no increase ❖ CompDent — Dental, small increase ❖ Stop Loss, Renewing 4-1-06 4• Life, Renewing 4-1-06 Benefits ❖ Health Risk Assessment (HRA) ❖ Disease Management ❖ Employee Assistance Program (EAP) — New Directions •:* Expanding ❖Wellness ❖Utilization Incentives (Research FY 06-07) V* **** 10 *t* L - E 0 cn CD CD cn n =r CD ,� m CL c 0 CO 0 CD n O Vesting Schedule Information (Information requested by Councilman Rigby) Assumptions: •'• 10%increase in premium (new hires) ❖ 20% turnover rate ••• Annual projected savings - $8,972/First Year ❖ No change in employee premium Vesting Schedule Information cont'd Comments from Consultant's Perspective: ❖ Should promote reduced turnover ❖ New employees accustomed to higher premiums if recruited from other employers ❖ Raises plan contributions without increase to existing participants ❖ Could apply to future retirees as well 1 0 t** **** V* V* ov 0 0 3 r CD 0 cn cn � - cD 0. 0 CD 0 cn 0 m mn 0 0 0 cn K CD r CD cm E 0 0 0 CD r 0 0 0 X CD CD 0 cn cn cn 0 7w] Wrap Up •'• Humana Plan has proven reduced costs ❖ Claims are up some •'• Fund balance is down •'• Still propose to maintain current cost to employees and retirees •'• Revised numbers for '05/'06 to be presented to Council in March 2006 w/budget amendments •'• New proposals forthcoming with incentives for cost containment for FY 06/07 next summer City of La Porte Insurance Fund (014) Summary Working Capital 9/30/04 Plus Estimated 04-05 Revenues Less Estimated 04-05 Expenditures Equals Estimated Working Capital 9130105 Plus 05-06 Revenues: Liability Employee Insurance Health Services Fund Total 158,796 1,238,5 83 1,397,379 953,520 2,676,378 3,629,899 918,948 2,897,645 3,816,493 193,468 1,017,316. 1,210,794 Charges to Departments - 2,539,214 2,539,214 Employee Contributions - 531,716 531,716 Retiree Contributions - 50,000 50,000 ` Administrative Transfers 812,517 - 812,517 Miscellaneous 36,030 - 36,030 Interest 9,000 9,000 18,000 Total Revenues 857,547 3,129,930 3,987,477 Equals Total Resources Less 05-06 Expenditures: Employee Health Services Liability Insurance Division Total Expenditures Equals Estimated Working Capital 9130106 Liability Insurance Division Revenues Expenditures Estimated Fund Balance Usage Employee Health Serpices Division Revenues Expenditures Estimated Fund Balance Usage Employee Health Services Division Targeted working capital - 90 to 120 days Estimated working capital -105 days Goal: $788,956 1 Day = $8,766 1,051,015 4,147,246 5,198,261 - 3,199,656 3,199,656 817,447 - 817,447 817,447 3,199,656 4,017,103 233,568 947,590 1,181,158 Estimated Projected 2004-05 2005-06 953,520 857,547 918,848 817,447 34,672 40,100 Estimated Projected 2004-05 2005.--6 2,676,378 3,129,930 2,897 645 3,199,656 (221,267) (69,726) Liability Insurance Division Targeted working capital - 90 to 120 days Estimated working capital - 104 days Goal: $201,562 1 Day = $2,240 � 3v r-d� e fi;�c&s City of La Porte Insurance Fund (014) Summary Working Capital 9130104 Plus Actual 04-05 Revenues as of 11/03/05 Less Actual 04-05 Expenditures as of 11/03/05 Equals Estimated Working Capital 9130105 Plus 05-06 Revenues: Charges to Departments Employee Contributions Retiree Contributions Administrative Transfers Miscellaneous Interest Total Revenues Equals Total Resources Less 05-06 Expenditures: Employee Health Services Liability Insurance Division Total Expenditures Equals Estimated Working Capital 9130106 Liability Employee Insurance Health Services Fund Total 158,796 1,238,583 1,397,379 956,017 2,642,167 3,598,184 833,565 3,268,13� 4,101,700 281,248 C-612,6�15 893,863 - 2,539,214 2,539,214 - 531,716 531,716 - 50,000 50,000 812,517 - 812,517 36,030 - 36,030 9,000 9,000 18,000 857,547 3,129,930 3,987,477 1,138,795 3,742,545 4,881,340 3,199,656 3,199,656 817,447 `J 817,447 817,447 3,199,656 4,017,103 321,348 542,889 864,237 Liability Insurance Division Estimated Projected 2004-05 2005-06 Revenues 956,017 857,54 Expenditures 833,565 817,447 Estimated Fund 122,45 440,100 Employee Health Services Division Estimated Projected 2004-05 2005-06 Revenues 2,642,167 3,12 ,930 Expenditures 3,268,135 3,199,656 Estimated Fund (625,969) (69,72 ) Targeted working capital - 90 to 120 days Estimated working capital - 60 days Employee Health Services Division Liability Insurance Division Targeted working capital - 90 to 120 days Targeted working capital - 90 to 120 days Estimated working capital - 62 days Estimated working capital -143 days Goal: $788,956 Goal: $201,562 1 Day = $8, 766 1 Day = $2,240 ' City of La Porte, Texas Employee Health Services ` 014-6144-515 Detail of Expenditures t Actual Budget Es"td As of 11/03MS Adopted 2003-04 2004-05 2004-05 2004-OS 2005-06 Personal Services: 1010 Regular Earnings - 18,044 17,738 11,383 18,928 1060 FICA - 1,391 1,357 971 1,448 I065 Retirement - 2,182 2,247 1,431 2,423 1080 Insurance- Medical - 1,288 1,288 1,288 1,538 1081 Insurance- Life - IS 15 9 14 Personal Services Subtotal - 22,910 22,645 14,992 24,351 Services & Charges: 5004 Consulting 4,787 - 30,000 - 20,000 5011 Claims Administration 53,371 125,000 125,000' y 140,002 135,000 6011 Claims Paid 3,304,198 3,000,000 ; = 2,500,000 - .2,9T"ol°I- . 2,700.000 6012 Reinsurance Premiums 190,227 255,300 220,000 _ M-490, 250,000 9997 Special Programs - - - - 70,305 Services & Charges Subtotal 3,552,583 3,390,300 t 2,875,ODO 3,253,153 3,175,30c _- Division Total 3,552,583 3,403,210 2497,645 4, 3,268,135 3,199,W 370,490 /r 1 i. City of La Porte -1-surance Fund (014) itement of Revenues Object Description Employee Health Services 408.04-01 Charges to Departments 408.04-02 Employee Contributions 408.04-03 COBRA Contributions 408.04-04 Retiree Contributions Employee Health Services Subtotal Administrative Transfers: 480.01-01 Transfer from General Fund 480.01-02 Transfer from Utility Fund 480.01-08 Transfer from Sylvan Beach Fund 480.01-10 Transfer from Airport Fund 480.01-16 Transfer from LPAWA Fund 480.01-23 Transfer from Computer Fund 480.01-24 Transfer from Vehicle Maintenance Fund 480.01-28 Transfer from Golf Course Fund Administrative Transfers Subtotal Miscelleneous: 410.01-00 Miscellaneous Revenue Miscellaneous Revenue Subtotal Interest: 483.01-00 Interest Income Interest Subtotal Total Insurance Fund Actual Budget Revised As of 11/03/05 Projected 2003-04 2004-05 2004-05 2004-05 2005-06 2,094,969 2,159,338 2,159,338 2,159,338 2,539,214 278,764 300,000 _ ; ;' 460;615 .415,413. 531,716 4,009 5,000 100 88 - 26,994 25,000 47,439 56,945 50,000 2,404,736 2,489,338 2,667,492 2,631,784 3,120,930 862,766 787,591 787,591 788,591 677,438 98,740 90,137 90,137 90,137 77,530 4,605 4,204 4,204 4,204 3,616 1,073 980 980 980 843 2,700 2,465 2,465 2,465 2,120 877 801 801 801 689 27,392 25,005 25,005 25,005 21,508 36,644 33,451 33,451 33,451 28,773 1,034,797 944,634 944,634 945,634 812,517 36,030 36,030 20,838 27,710 17,772 20,766 18,000 20,838 27,710 17,772 20,766 18,000 3,460,371 3,461,682 3,629,898 3,598,194 3,987,477 31,714 City of La Porte, Texas Liability Insurance Detail of Expenditures Personal Services: 1010 Regular Earnings 1035 Longevity 1060 FICA 1065 Retircmmt 1070 Workers Compensation 1080 Insurance - Medical 1091 Insurance - Life Personal Services Subtotal Supplies 2050 Safety 2090 Machinery/ bols/Equipment 2093 Computer Equipment Supplies Subtotal Services & Charges: 3001 Memberships & Subscriptions 3020 Training/Seminars 3022 Employee Training 6007 Insurance 9997 Special Programs 9050 Contingency Services & Charges Subtotal Division Total Actual 2003-04 44,197 3,348 5,290 47VOI 6,250 30 537,416 014-6142-515 Budget Estimated As of 11/03/05 Adopted 2004-05 2004-05 2004-05 2005-06 63,108 62,641 57,144 63,592 - 52 52 100 4,827 4,703 4,359 4,844 7,629 7,809 7,231 8,139 470,000 462,000 460,070 342,883 6 417 6 413 6417 6nnn 100 100 3 100 - 12,362 - 17,000 12,362 - - - 12,462 IZ462 3 17,100 - 200 200 - 200 16 1,000 1,000 - 1,000 - 21,000 21,000 21,113 21,000 335,052 319,338 319,000 259,225 317,145 13,067 35,000 20,000 18,871 33,872 985 11500 1,500 - 1,500 349,120 379,038 362,700 298,209 374,717 986,536 942,573 918,848 933,565 917,447 r,. 02�� oz7o a. Overall, how would you rate your health during the PAST 4 WEEKS? Excellent Very good Good Fair Poor Very poor Copyrightp QualityMetric Incorporated, 2005 Rig it Iy 2. How TRUE or FALSE is the following statement for you? I am in poor health. Definitely true Mostly true Don't know Mostly false Definitely false Copyrightm QualityMetri. Incorporated, 2005 Done *" . ,y �yy In'�ty�vn�etj a 1 »,.s�` ...... Z 0,'� &�`,:x`.1:.%, `€:'w,nr. xi � �o 3. How TRUE or FALSE is the following statement for you? I am somewhat iff. Definitely true Mostly true Don': know Mostly false Definitely false CopyrightQ QualityMetric Incorporated, 2005 J $7 Internet A», i ..y...... ,_.� .. .,. ,. , ;.�s'.a .. 1. ~-~#� $41 a slo L Ws _sO cow W I i a . ki i•Y x+�^.;^a tx..y -ter- r "„` s j4. How TRUE or FALSE is the following statement for you? My health is excellentx 11 - Definitely true Mostly true Don't know Mostly false Definitely false Copyright® QualityMetric Incorporated, 2005 ( rJ Mai et 5. During the PAST 4 WEEKS, how much did physical health problems limit your usual physical actiejtjes (such as walking or climbing stairs)? Not at all Very little Some�mhat Quite a lot Could not do physical activities Copyright© Quality Metric In—porated, 2005 r, InternetD— "4 011-?M�'L- 6. Does YOUR HEALTH NOW LIMIT YOU in walking SEVERAL HUNDRED YARDS? If so how much? Yes, limited a lot Yes, limited a little No, not limited at all -5n W Copyright© Quality Metric In—porated, 2005 Done J, W—kf fix 7. Does YOUR HEALTH NOW LIMIT YOU in walking YORE THAN A MILE? if so ho,' much? Yes, limited a lot Yes, limited a little No, not limited at all Copyright© Q..IitlM.tri. Incorporated, 200S C.n — t. the —t q,—,L,- Internet 0 "IN IN "I fflo" 9 0 KURT S. Does YOUR HEALTH NOW LIMIT YOU in MODERATE ACTIVITIES, such as moving a table, pushing a vaccurn cleaner, bowling, or playing gaff? If so, how much? Yes, limited a lot Yes, limited a little No, not limited at all Copyright© Quality Metric Incorporated, 200S f-549, 4. During the PAST 4 WEEKS, how much difficultly did you have doing your daily worF:, both at home and away from home, because of your physical health? None at all A little bit Some Quite a lot Could not do daily work Copyrigntp QualityMetric Incorporated, 2005 J ,IP Internet I t: Ia. During the PAST 4 WEEKS, how much of the time were you limited in the KIND of j work or other activities you did AS A RESULT OF YOUR PHYSICAL HEALTH7 All of the time Most of the time Some of the time A little of the time None of the time Copyright® QualityMetric Incorporated, 2005 Continue to the next question �$ +�. t �yJ '10 Internet .$ 1" a'f, s 1 ...«.;..sm 2 ..,. s..« x. .e„a,PAL= n 11. During the PAST 4- WEEKS, how much of the time have You had DIFFICULTY performing work or other activities AS A RESULT OF YOUR PHYSICAL HEALTH (for example, it took extra effort)? All of the time i Most of the time 1 Some of the time A little of the time None of the time CopyrightC QualitgMetric Incorporated, 2005 1 i -. J i7 Internet 12. During the PAST 4 WEEKS, how much of the time have you cut down on the AMOUNT OF TIME you spent on work or other activities AS A RESULT OF YOUR PHYSICAL HEALTH? All of the time Most of the time Some of the time A little of the time None of the time Copyrightg Quality Metric Incorporated, 2005 Dore J '4°7 Interne[ i3. S 1—v much BODILY PAIN have you had during the PAST 4 WEEKS? None Very mild Mild Moderate Severe Very severe Copyrightp Quality Metric Incorporated, 2005 fpn[InUe to the next ques[an J j,I intemet 14. During the PAST 4 WEEKS, how much did PAIN interfere with your normal work (including both work outside the home and housework)? Not at all A little bit i Moderately i quite a bit j Extremely Copyrightp Quality Metric Incorporated, 2005 _ ` Internet ContMvx to the next westian ,,digs ., 't':,�,�...�Fr>.•.,. �.,.4..» $ «_. ,». .�,r,.� ,..,.., :, s>.. ,r.-��'«"9i� °. il�,rt1 , �`,i�i ➢;��. tii`.9•?. 1.5. During the PAST 4 WEEKS, [jov; much did Pain interfere tuEtjh Vot!r t activities? Not at all A little bit Moderately Cute a bit Extremely Copyright© QualityMetric Incorporated, ZOOS Corkin, to the nert Q—t— Internet u 'Mal k� 14000 �002 16. During the PAST 4 WEEKS, how much energy did you have? very much Quite a lot some A little None Copyright(D QualityMetric Incorporated, ZOOS 0 Internet _ Done 17. Haw much of' he time DURING THE PAST 4 WEEKS aid You feel tired? All of the time most of the time Some of the time A little of the time None of the time Copyright© Quality Metric Incorporated, 2005 Internet romme to the >_t coast on ftg- #. ,.. � ;i. 5;?. y ,y{ yt4 f';' t .Ei*�i:`•�t?�'.°�9m`r. ,' ..." Yttw� F 18. How much of the time DURING THE PAST 4 WEEKS did you feel worn out? All of the time most of the time Some of the time A little of the time : None of the time Copyright® Quality Metric Incorporated, 2005 Int— .r ... . ,.W ou _.,�...o.. .._... ,uw„... ;.... d i TY. ig. How much of the time DURING THE PAST 4 WEEKS did you have a dot of energy? All of the time Most of the time Some of the time A little of the time None of the time Copyright© QualityMetiic Incorporated, 2005 ^` ..ti# x i. t v' s_. .. ,..� }�sw m I 20. How much of the time DURING THE PAST 4 WEEKS did you feel full of life? All of the time Most of the time Some of the time A little of the time None of the time CopyrighttD Quality Metric Incorporated, 2005 Cont" to the next question J 9 Intern t 21. During the PAST,; WEEKS, how much did your physical health or emotional Problems limit your usual social activities with family or friends? Not at all fiery little Somewhat Quite a lot Could not do social activities Copyright© Quality Metric Incorporated, 2005 ,5k'txi � u ' _.<,< ._ +'� �'. ,.: �.. .a _°.,., .r. ., n I1� v r r r to t 7+r 22. During the PAST 4 WEEKS, how much of the time has your PHYSICAL HEALTH OR EMOTIONAL PROBLEMS interfered with your social activities (like visiting friends, relatives, etc.)? All of the time Most of the time Some of the time A little of the time None of the time Copyri Next QualityMetric Incorporated, 2005 �, CON.nue to the next o—tm r 23. During the PAST 4 WEEKS, to what extent has your PHYSICAL HEALTH OR EMOTIONAL PROBLEMS interfered with your normal social activities with family, friends, neighbors, or groups? Not at all Slightly j Moderately Ouite a bit Extremely Copyright© Quality Metric Incorporated, 2005 J Internet g� y 25. Compared to your usual level of activity, has your social activity during the PAST I MONTH decreased, stayed the same, or increased because of a change in your physical or emotional condition? Much less socially active than before Somewhat less socially active than before %-jou, ss saci.=l!v zc.'v4 as _--:;ors- Somewhat more socially active than before Much more socially active than before Copyrightm QualityMetric Incorporated, 2005 selert response Si Intone[ 26. During the PAST 4 WEEKS, how much have you been bothered by EMOTIONAL PROBLEMS (such as feeling anxious, depressed or irritable)? Not at all Slightly Moderately Quite a lot Extremely Copyright© Quality Metric Incorporated, 2005 Gone 4,1 #glt t 27. During the past month, how much of the time did you feel depressed? i All of the time Most of the time A good bit of the time Some of the time A little of the time None of the time Copyrightm QualityMetric Incorporated, 2005 .. Ifs.�'x< su'f..:^>�...�."',.2.>.. 28. How much of the time, during the past month, have you felt calm and peaceful? All of the time Most of the time A good bit of the time Some of the time A little of the time None of the time Copyright? Quatit"Ietric Incorporated, 2005 th k C-r to e —t gu (m - J y3 Internet 7-7 29. During the past month, how much of the time have you been a happy person? All of the time Most of the time A good bit of the time Some of the time A little of the time None of the time Copyright© Quality Metric Incorporated, 2005 Do- Irate -et fiE no 30. How much of the time, during the past month, have you felt cfieerful, lighthearted? All of the time Most of the time A goon bit of the time Some of the time A little of the time None of the time Copyright© QualityMetric Incorporated, 2005 __ J '� lntemet 54 ,.>. c � . v = �.. fir.. .: :. %_..n,. .:: i, .., i ,Ii X 31. During the past month, how much of the time have you been in low or very low spirits? All of the time Most of the time A good bit of the time Some of the time j A little of the time None of the time Copyrightp Quality Metric Incorporated, 2005 _. Conti— to the next questlon -.-.. ......_ .. _... _._ J Y7 Internet .,�- 32. During the PAST 4 WEEKS, how much did personal or emotional probierns keep you from doing your usual work, school or other daily activities? IVot at all Very little Somewhat I�I Quite a lot Could not do daily activities Copyright® Quality Metric Incorporated, 2005 „ Contrwe to the —t question # J Inlemet 1 I ,yy I i <.Yrt 33. During the PAST 4 WEEKS, how much of the time have you cut down on the AMOUNT OF TIME you spent on work or other activities AS A RESULT OF ANY EMOTIONAL PROBLEMS (such as feeling depressed or anxious)? All of the time Most of the time Some of the time A little of the time None of the time Copyright® Quality Metric Incorporated, 2005 34. During the PAST 4 WEEKS, how much of the time have you ACCOMPLISHED LESS than you would dike AS A RESULT OF ANY EMOTIONAL PROBLEMS (such as feeling depressed or anxious)? All of the time Most of the time Some of the time A little of the time None of the time Copyright® Quality Metric Incorporated, 2005 �INe, net �I �l. 35. During the PAST 4 WEEKS, how much of the time have you done work or other activities LESS CAREFULLY THAN USUAL AS A RESULT OF ANY EMOTIONAL PROBLEMS (such as feeling depressed or anxious)? All of the time Most of the time Some of the time I . A little of the time None of the time Copyright© Quality Metric Incorporated, 2005 _...._.__...__ _. _ it Internet 35. Compared to one year ago, how would you rate your health in general new? Much better now than one year ago Somewhat better now than one year ago About the same as one year ago somewhat worse now than one year ago Much worse now than one year ago copyright© QjalityMetric Incorporated, 2005 f) Internet NQ 0 R LEE e. C"I' " 'o -c fj V lrt—et Dona 4G J W, Health Survey Supplement Have You been treated for any ofthfollowing conditions in the past 12 months? Arthritis Hemophilia Asthma High Blood Pressure Back Pain Kidney Failure requiring dialysis Cancer Lupus Chronic Obstrucbve Multiple Sclerosis (MS) Pulmonary Disease (COPD), for example, Emphysema or Chronic Bronchitis Cystic Fibrosis lvlyasthenia Gravis Diabetes Heart Disease, for example, Congestive Heart Failure (CHF) or Coronary Artery Disease (CAD) '4, MMEV. j) Internet i•lm m :3 to - AUt.ShaD*s - %ge 19 $e[ 1 39/19 4t 5.41' Ln 3 C.1 i A P.ehniy Ei ate: October 2-, 2005 su—v [wNde: Vdeb Age: 26 Gendet: Male '1,Ont1,.76 B,1 trt the ,Ione-1 l,a pitlittl�61... C onditinns: Unknown __..- functioning is worse pain is the same 4.4 performance ofwork, home or school activities is slightly worse 00 <e so 60 70 E—ollotla Hy.... us AvG. bothered less than most Your physical health summary score is below average, participation in social activities is more limited taking into account the margin of error. ------- performance ofwork, home and school activities is limited more Overa N. yorfr... 48 rating of your health is a little worse energy level is lower " e0 -o se eo 70 Compared Io other men of sindlar - : us AVG. your physical health appears to be worse -. Your mental health summary score is about average, your emotional health appears to be about the taking into account the margin of error. ! same Bate Physical Health Mental Health 'We recommend that you discuss the results of this ! Snr ilowy Sltnrtn•t1y - Gtnent: 1027105 44 48 f assessment with your physician on your next visit. Pietdous: OM7104 51 55 Change: I Your physical and mental health summary scores changed significantly compared to the last time the IeL— R. enro .n mention thle fn vnv. Done Internet Case Utilization Rate 26 % -otal Contacts Case r nnUallzed RaiE a011 % Employee Population (`d`Jeigh =o) 396 Total Clients Serviced 5 Total No Shows 0 4i!ew Case Summary Closed Case Count Total New Cases 5 Total Cases Closed Primary Presenting Problem Maui?Family 20.0 % i a a o mill � Psychological/Emotional 4 80.0 % 0 0.0 % 0 0.0 % 0 0.0 % 1 80.0 % Marital/Family 1 20.0 % 0 0.0 % 0 0.0 % 0 0.0 % 20 0 TOTAL 5 0 0 0 5 70TX'1L New Directions Bebauioral Health Page 1 of 4 10/18/2005 Previous Client EAP Orientation Family TOTAL Referred By Previous Client 2 40.0% 0 0.0% 0 0.0% 0 0.0% I 4 0 0 % !( 40.0% 0 0.0°/ 0 0.0°/ 0 0.0% 400"1 1 20.0% 0 0.0% 0 0.0% 0 0.0% 200"a 5 0 0 FamilylPeer 20.0 % �r� 3D.D`76 Self 4 80.0 /° 0 0.0 /° 0 0.0% 0 0.0% a 80 0 % Family/Peer 1 20.0% 0 0.0 % 0 0.0% 0 0.0 % 1 20 D°/ TOTAL 5 0 0 0 5 New Directions Behavioral Health Page 2 of 4 10/19/2005 Employee Dependent Spouse TOTAL Gender Euenmary Male Female TOTAL r Dependent_ L_5mployee 20.0% 61J.13% a a o s 3 30.0% 0 0.0% 0 0.0% 0 0.0% S� 500% 1 20.0% 0 0.0% 0 D.0% 0 0.0% I t00% 1 20.0% 0 0.0% 0 0.0% 0 0.0°/ 'I 20011/. Female 20.0 % c^^•D% 1 20.01/6 0 0.01/. 0 0.0% 0 0.0% 1 20.0% 5 0 0 0 5 Neiv Directions Behavioral Health Page 3 of 4 10/18/2005 Improved 100.0 % Improved 2 100.0% 0 0.0 % 0 D.0%n 0 0.0 % 100 0°/ TOTAL - D 7 -�- Nero Directions Behavioral Health Page 4 of 4 10/18/2005 November 3, 2005 To: All Full Time City of La Porte Employees From: Nicole Fatter, FR Specialist III Re: Open Enrollment I' XAS Our benefits enrollment period starts November 7, 2005 and continues through December 16, 2005. At the open enrollment meetings, you'll learn more about your benefit options, the enrollment process and get your questions answered. Representatives from CompBenefits, Spectera, Humana & Colonial Life Insurance will be at the open enrollment meetings listed below. If you have any questions about the programs, please attend. Deductions will begin on the December 9th paycheck for Vision & Dental. New rates or rate changes for Medical will begin on the January 6 h paycheck. Effective date for all benefit changes will be January 1, 2006. Benefits Enrollment Meeting Schedule Date Time Location Vendor Monday - November 7 10:00 am City Hall Humana, Colonial 2:00 pm City Hall Humana, Colonial Tuesday — November 8 8:00 am PW Humana, Colonial Wednesday — November 9 10:00 am City Hall Spectera, CompBenefits Friday —November 11 10:00 am Municipal Court Humana, Colonial Computer Enrollment Schedule — Medical Only! All employees must complete enrollment on-line! Humana representatives will be available to assist you with on-line enrollment on the following dates and times: Date Time Location Vendor Wednesday, December 7 7:00 am— 5:00 pm Fitness Center Humana Thursday, December 8 7:00 am— 5:00 pm Fitness Center Humana Friday, December 9 7:00 am— 5:00 pm Fitness Center Humana Monday, December 12 7:00 am— 5:00 pm Fitness Center Humana Tuesday, December 13 7:00 am— 5:00 pin Fitness Center Humana Wednesday, December 14 7:00 am— 5:00 pm Fitness Center Humana Thursday, December 15 7:00 am— 5:00 pm Fitness Center Humana Friday, December 16 1 7:00 am— 5:00 pin Fitness Center Humana The computers will be available for enrollment from lam— 7 m iNlonthii , (-, ontrI0UtI01'l ")C11COUIC Plan Options Total Monthly Member Monthly Employee Per Clued Premium Contributions Contributions Coverage 1st - $1,500 Deductible Employee Only $531,20 $14.65 $6.76 Employee & Spouse $684.03 $105.00 $48.46 Employee & Children $623.53 $95.24 $43.96 Employee & Family $744.51 $120.69 $55.70 Coverage 1st - $1,000 Deductible Employee Only $573.33 $22.70 $10.48 Employee & Spouse $738.19 $130.34 $60.16 Employee & Children $672.93 $120.07 $55.42 Employee & Family $803.44 $155.60 $71.82 PPO - $500 Deductible Employee Only $597.54 $50.23 $23.18 Employee & Spouse $769.36 $165.74 $76.50 Employee & Children $701.35 $155.15 $71.61 Employee & Family $837.35 $185.32 $85.53 PPO - $300 Deductible Employee Only $651.76 $79.14 $36.53 Employee & Spouse $839.07 $225.79 $104.21 Employee & Children $764.93 $215.99 $99.69 Employee & Family $913.20 $239.56 $110.57 4F a � 9 C7 m TEXAS MEMORANDUM The �- Welch Company Two Memorial City Plaza 820 Gessner, Suite 1470 November 8, 2005 Houston, Texas 77024 T: 713.827.8755 F: 713.461.5788 www.thewelchco.com To: Robert Swanagan From: Neal W. Welch A"' Subject: Medical Plan Vesting Schedule At our last meeting Mrs. Feazelle asked for information relating to a vesting schedule where new employees (2006) would pay 10% more than existing plan participants. The goal of this exercise was to evaluate the impact of this schedule both in human resource and financial terms. From a financial standpoint I calculated some simple projections based on data provided by you. 1) Turnover of eligible employees through November of 2005 is 55. 1 annualized this statistic to 60. 2) Using the 2005 employee contribution schedule, a 10% increase in premium (employee portion only) spread proportionately over the four current plan alternatives would yield a $8972.28 increase in contribution per year. 3) Current employee contributions per year are $540,025. Therefore the increase would have a 1.7% impact. 4) As years progress a 20% turnover rate applied to 2005 plan participants would repeat the $8972.28 increase. Example 2006 $2,700,000 + $ 8,972.28 = $2,708,972 2007 $2,708,972 + $17,944.56 = $2,726,916 2008 $2,726,916 + $26,916.84 = $2,753,832 5) Assumptions do not include any other change in employee premium during the time period. From a Human Resource perspective I offer these considerations: 1) Vesting should promote reduced turnover. 2) New employees are accustomed to higher contributions if recruited from outside employers. 3) Vesting program raises plan contributions without increase to existing participants. 4) Could be applied to future retirees as well. In closing I would also offer that record keeping/payroll administration should be factored into the decision making process, since two sets of active contributions would be required. I will provide my spreadsheets to support the financial projections tomorrow if required. I wanted to meet your time frames. Employee Benefits Consulting City of La Porte November 10, 2005 Dear Retiree: The information summary enclosed is very important and discusses Medicare plans that offer prescription drug coverage. I hope you will review very carefully, and consider the details provided. If you cannot get desired information from the resources listed in this literature please do not hesitate to call me at 281-470- 5025 (office), (Cell) 281-628-3927, or e-mail me at SwanaganRQjaportetx.s!ov. Thanks, R. L. Swanagan Manager, Human Resources City of La Porte 604 W. Fairmont Pkwy. • La Porte, Texas 77571 • (281) 471-5020 Important Notice from the City of La Porte About Your Prescription Drug Coverage and Medicare Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with the City of La Porte and a new Prescription drug coverage available January 1, 2006 for people with Medicare. It also tells you where to find more information to help you make decisions about your prescription drug coverage. - 1. Starting January 1, 2006, new Medicare prescription drug coverage will be available to everyone with Medicare. 2. The City of La Porte has determined that the prescription drug coverage offered by Humana is, on average for all plan participants, expected to. pay out as much as the standard Medicare prescription drug coverage will pay. 3. Read this notice carefully - it explains the options you have under Medicare prescription drug coverage, and can help you decide whether or not you want to enroll. You may have heard about Medicare's new prescription drug coverage, and wondered how it would affect you. The City of La Porte has determined that your prescription drug coverage with Humana is, on average for all plan participants, expected to pay out as much as the standard Medicare prescription drug coverage will pay. Starting January 1, 2006, prescription drug coverage will be available to everyone with Medicare through Medicare prescription drug plans. All Medicare prescription drug plans will provide at least a standard level of coverage set by Medicare. Some plans might also offer more coverage for a higher monthly premium. Because your existing coverage is on average at least as good as standard Medicare prescription drug coverage, you can keep this coverage and not pay extra if you later decide to enroll in Medicare coverage. People with Medicare can enroll in a Medicare prescription drug plan from November 15, 2005 through May 15, 2006. However, because you have existing prescription drug coverage that, on average, is as good as Medicare coverage, you can choose to join a Medicare prescription plan later. Each year after that you will have the opportunity to enroll in a Medicare prescription drug plan between November 15`h through December 31S` If you do decide to enroll in a Medicare prescription drug plan and drop your Humana prescription drug coverage, be aware that you may not be able to get this coverage back. If you drop your coverage with The City of La Porte and enroll in a Medicare prescription drug plan, you may not be able to get this coverage back later. You should compare your current coverage, including which drugs are covered, with the coverage and cost of the plans offering Medicare prescription drug coverage in your area: In addition, your current coverage pays for other health expenses, in addition to prescription drugs, and you will still be eligible to receive all of your current health and prescription drug benefits if you choose to enroll in a Medicare prescription drug plan. While each plan may vary from company to company, here's what a standard Medicare prescription drug benefit may look like: If your 2006 drug costs are between: You pay: Up to a maximum of: Your maximum total annual drug cost will then be your premium plus: $0-$250 100% $250 $250 $251-$2,250 25% $500 $750 $2,250-$5,100 100% $2,850 $3,600 Over $5,1 00 5% NO LIMIT $3,600 plus 5% of drug costs above $5, 100 Medicare anticipates the average premium will be around $37 per month. You should also know that if you drop or lose your coverage with The City of La Porte and don't enroll in Medicare prescription drug coverage after your current coverage ends, you may pay more to enroll in Medicare prescription drug coverage later. If after May 15, 2006, you go 63 days or longer without prescription drug coverage that's at least as good as Medicare's prescription drug coverage; your monthly premium will go up at least 1 % per month for every month after May 15, 2006 that you did not have that coverage. For example, if you go nineteen months without coverage, your premium will always be at least 19% higher than what most other people pay. You'll have to pay this higher premium as long as you have Medicare coverage. In addition, you may have to wait until next November to enroll. For more information about this notice or your current prescription drug coverage... Contact our office for further information call Robert Swanagan at (281) 470-5025. NOTE: You may receive this notice at other times in the future such as before the next period you can enroll in Medicare prescription drug coverage, and if this coverage changes. You also may request a copy. For more information about your options under Medicare prescription drug coverage... More detailed information about Medicare plans that offer prescription drug coverage will be available in October 2005 in the "Medicare & You 2006" handbook. You'll get a copy of the handbook in the mail from Medicare. You may also be contacted directly by Medicare prescription drug plans. You can also get more information about Medicare prescription drug plans from these places: Visit www.medicare.gov for personalized help. Call your State Health Insurance Assistance Program (see your copy of the Medicare & Your handbook for their telephone number). Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048. For people with limited income and resources, extra help paying for a Medicare prescription drug plan is available. Information about this extra help is available from the Social Security Administration (SSA). For more information about this extra help, visit SSA online at www.socialsecurity.gov. or call them at 1-800- 772-1213 (ITT 1-800-325-0778). Remember: Keep this notice. If you enroll in one of the new plans approved by Medicare which offer prescription drug coverage after May 15, 2006, you may need to give a copy of this notice when you loin to show that you are not required to pay a higher premium amount. Date: 11-10-05 Name of Entity/Sender: City of La Porte Contact—Position/Office: HR Manager/Human Resources Address: 604 W. Fairmont Parkway, La Porte, Texas 77571 Phone Number. 281-470-5025 MEMORANDUM The Welch Company Two Memorial City Plaza 820 Gessner, Suite 1470 November 8, 2005 Houston, Texas 77024 T: 713.827.8755 R E C E-O v i— F: 713.481.5788 To: Robert Swanagan www.tnewelcnco.com From: Neal W. Welch NOV ► , ,..� lj CITY Oleic, Subject: Medical Plan Vesting Schedule At our last meeting Mrs. Feazelle asked for information relating to a vesting schedule where new employees (2006) would pay 10% more than existing plan participants. The goal of this exercise was to evaluate the impact of this schedule both in human resource and financial terms. From a financial standpoint I calculated some simple projections based on data provided by you. 1) Turnover of eligible employees through November of 2005 is 55. 1 annualized this statistic to 60. 2) Using the 2005 employee contribution schedule, a 10% increase in premium (employee portion only) spread proportionately over the four current plan alternatives would yield a $8972.28 increase in contribution per year. 3) Current employee contributions per year are $540,025. Therefore the increase would have a 1.7% impact. 4) As years progress a 20% turnover rate applied to 2005 plan participants would repeat the $8972.28 increase. Example 2006 $2,700,000 + $ 8,972.28 = $2,708,972 2007 $2,708,972 + $17,944.56 = $2,726,916 2008 $2,726,916 + $26,916.84 = $2,753,832 5) Assumptions do not include any other change in employee premium during the time period. From a Human Resource perspective I offer these considerations: 1) Vesting should promote reduced turnover. 2) New employees are accustomed to higher contributions if recruited from outside employers. 3) Vesting program raises plan contributions without increase to existing participants. 4) Could be applied to future retirees as well. In closing I would also offer that record keeping/payroll administration should be factored into the decision making process, since two sets of active contributions would be required. I will provide my spreadsheets to support the financial projections tomorrow if required. I wanted to meet your time frames. J Employee Benefits Consulting Off. A� �.� C *ty of La Porte Established 1892 L'' TEXAS November 10, 2005 Dear Retiree: The information summary enclosed is very important and discusses Medicare plans that offer prescription drug coverage. I hope you will review very carefully, and consider the details provided. If you cannot get desired information from the resources listed in this literature please do not hesitate to call me at 281-470- 5025 (office), (Cell) 281-628-3927, or e-mail me at SwannanR 4japortetx.gov. Thanks, R. L. Swanagan Manager, Human Resources City of La Porte 604 W. Fairmont Pkwy. • La Porte, Texas 77571 • (281) 471-5020 Important Notice from the City of La Porte About Your Prescription Drug Coverage and Medicare Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage with the City of La Porte and a new Prescription drug coverage available January 1, 2006 for people with Medicare. It also tells you where to find more information to help you make decisions about your prescription drug coverage. 1. Starting January 1, 2006, new Medicare prescription drug coverage will be available to everyone with Medicare. 2. The City of La Porte has determined that the prescription drug coverage offered by Humana is, on average for all plan participants, expected to pay out as much as the standard Medicare prescription drug coverage will pay. 3. Read this notice carefully - it explains the options you have under Medicare prescription drug coverage, and can help you decide whether or not you want to enroll. You may have heard about Medicare's new prescription drug coverage, and wondered how it would affect you. The City of La Porte has determined that your prescription drug coverage with Humana is, on average for all plan participants, expected to pay out as much as the standard Medicare prescription drug coverage will pay. Starting January 1, 2006, prescription drug coverage will be available to everyone with Medicare through Medicare prescription drug plans. All Medicare prescription drug plans will provide at least a standard level of coverage set by Medicare. Some plans might also offer more coverage for a higher monthly premium. Because your existing coverage is on average at least as good as standard Medicare prescription drug coverage, you can keep this coverage and not pay extra if you later decide to enroll in Medicare coverage. People with Medicare can enroll in a Medicare prescription drug plan from November 15, 2005 through May 15, 2006. However, because you have existing prescription drug coverage that, on average, is as good as Medicare coverage, you can choose to join a Medicare prescription plan later. Each year after that you will have the opportunity to enroll in a Medicare prescription drug plan between November 15`h through December 31S` If you do decide to enroll in a Medicare prescription drug plan and drop your Humana prescription drug coverage, be aware that you may not be able to get this coverage back. If you drop your coverage with The City of La Porte and enroll in a Medicare prescription drug plan, you may not be able to get this coverage back later. You should compare your current coverage, including which drugs are covered, with the coverage and cost of the plans offering Medicare prescription drug coverage in your area: In addition, your current coverage pays for other health expenses, in addition to prescription drugs, and you will still be eligible to receive all of your current health and prescription drug benefits if you choose to enroll in a Medicare prescription drug plan. While each plan may vary from company to company, here's what a standard Medicare prescription drug benefit may look like: If your 2006 drug costs are between: You pay: Up to a maximum of: Your maximum total annual drug cost will then be your premium plus: $0-$250 100% $250 $250 $251-$2,250 25% $500 $750 $2,250-$5,100 100% $2,850 $3,600 Over $5,1 00 5% NO LIMIT $3,600 plus 5% of drug costs above $5, 100 Medicare anticipates the average premium will be around $37 per month. You should also know that if you drop or lose your coverage with The City of La Porte and don't enroll in Medicare prescription drug coverage after your current coverage ends, you may pay more to enroll in Medicare prescription drug coverage later. If after May 15, 2006, you go 63 days or longer without prescription drug coverage that's at least as good as Medicare's prescription drug coverage; your monthly premium will go up at least 1 % per month for every month after May 15, 2006 that you did not have that coverage. For example, if you go nineteen months without coverage, your premium will always be at least 19% higher than what most other people pay. You'll have to pay this higher premium as long as you have Medicare coverage. In addition, you may have to wait until next November to enroll. For more information about this notice or your current prescription drug coverage... Contact our office for further information call Robert Swanagan at (281) 470-5025. NOTE: You may receive this notice at other times in the future such as before the next period you can enroll in Medicare prescription drug coverage, and if this coverage changes. You also may request a copy. For more information about your options under Medicare prescription drug coverage... More detailed information about Medicare plans that offer prescription drug coverage will be available in October 2005 in the "Medicare & You 2006" handbook. You'll get a copy of the handbook in the mail from Medicare. You may also be contacted directly by Medicare prescription drug plans. You can also get more information about Medicare prescription drug plans from these places: Visit www.medicare.gov for personalized help. Call your State Health Insurance Assistance Program (see your copy of the Medicare & Your handbook for their telephone number). Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048. For people with limited income and resources, extra help paying for a Medicare prescription drug plan is available. Information about this extra help is available from the Social Security Administration (SSA). For more information about this extra help, visit SSA online at www.socialsecurity.gov. or call them at 1-800- 772-1213 (ITT 1-800-325-0778). Remember: Keep this notice. If you enroll in one of the new plans approved by Medicare which offer prescription drug coverage after May 15, 2006, you may need to give a copy of this notice when you loin to show that you are not required to pay a higher premium amount. Date: 11-10-05 Name of Entity/Sender: City of La Porte Contact--Position/Office: HR Manager/Human Resources Address: 604 W. Fairmont Parkway, La Porte, Texas 77571 Phone Number. 281-470-5025