Loading...
HomeMy WebLinkAbout2006-04-10 Regular Meeting and Workshop Meeting MINUTES OF REGULAR MEETING AND WORKSHOP MEETING OF THE LA PORTE CITY COUNCIL April 10, 2006 1. CALL TO ORDER The meeting was called to order by Mayor Alton Porter at 6: 02p.m. Members of City Council Present: Mayor Alton Porter, Council members Tommy Moser, Mike Clausen, Mike Mosteit, Louis Rigby, Barry Beasley, Howard Ebow, Peter Griffiths and Chuck Engelken. Members of Council Absent: none. Members of City Executive Staff and City Employees Present: City Manager Debra Feazelle, Assistant City Manager John Joerns, Assistant City Attorney Clark Askins, Assistant City Manager Cynthia Alexander, Planning Director Wayne Sabo, EMS Chief Ray Nolen, Assistant City Secretary Sharon Harris, Public Works Director Steve Gillett, Parks and Recreation Director Stephen Barr, Human Resources Manager Robert Swanagan, Building Official Debbie Wilmore, Golf Pro Alex Osmond, City Secretary Martha Gillett, Assistant Fire Chief Champ Dunham, Equipment Services/Solidwaste Superintendent, Parks and Recreation Programs Coordinator Mike Hovendick, Police Dispatcher Wanda Richards, and Assistant Police Chief Aaron Corrales. Others Present: Carol Christian, Houston Chronicle, Mr. and Mrs. Lindquist, Sue Gail Kooken, Tim Bird, Jay Dunham, Garrett Lindquist, Tom Campbell, Paul Larson, several Red Suspender's members and other citizens. 2. Bobbye Worsham of Second Baptist Church of La Porte delivered the invocation. 3. Mayor Porter led the Pledge of Allegiance. 4. PRESENTATIONS / PROCLAMATIONS A. Mayor Porter, Public Works Director Steve Gillett and Equipment Services Superintendent Lee Allen presented Employee of the First Quarter plaque to Jesus Alfaro. B. Mayor Porter presented Mike Hovendick a proclamation for City of La Porte Kite Month. C. Mayor Porter and Assist Chief Aaron Corrales presented a proclamation for Public Safety Telecommunication's Week to Kristi Palmer, Ethel Ridgeway, Charlene Fox and Wanda Richards. Accompanying Mayor was Assistant Police Chief Aaron Corrales. D. Mayor Porter presented a proclamation for Autism Society of America Day to Mr. and Mrs. Lindquist and Garrett Lindquist. E. Council to consider approval or other action regarding adopting a resolution supporting the dry berthing of the Battleship Texas at the San Jacinto Battleground. City Council Regular Meeting and Workshop Meeting -April 10, 2006 Page 2 Motion was made by Councilmember Beasley to approve the Resolution as presented. Second by Councilmember Griffiths. The motion carried. Ayes: Mayor Porter, Beasley, Mosteit, Engelken, Ebow, Moser, Rigby and Clausen. Nays: None Abstain: None 5. Consent Agenda A. Consider approving Minutes of the Regular Meeting and Workshop Meeting of City Council held on March 27, 2006. B. Council to consider approval or other action regarding adoption of a resolution authorizing the city manager to execute all documents accepting a "Click It or Tick It" grant. Motion was made by Council member Ebow to approve the consent agenda as presented. Second by Council member Engelken. Motion carried. Ayes: Mosteit, Moser, Ebow, Engelken, Rigby, Beasley, Clausen, Griffiths and Mayor Porter. Nays: None Abstain: Griffiths on item A. 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA. Jay Dunham - 1101 Willow Creek Drive - Mr. Dunham announced Red Suspender's Society Fish Fry benefiting Special Olympics on April 22, 2006. Several Red Suspenders members joined Mr. Dunham. Ed Matuzak - Mr. Matuzak provided council with an overview on item E regarding a resolution supporting the dry berthing of the Battleship Texas at the San Jacinto Battleground. 7. Council to consider approval or other action accepting the Building Codes Appeals Board recommendation and direct staff to prepare an ordinance implementing the change. Debbie Wilmore presented summary and recommendation and answered Council's questions. Council directed staff to come back in the future to adopt an ordinance as presented for approval. 8. Council to consider approval or other action regarding an ordinance amending Section 12.00 "Open Space Within Subdivisions and Developments, Parks and Parkland Dedication, Special Use Sites" of City of La Porte Ordinance 1444-G by replacing section 12.00 through City Council Regular Meeting and Workshop Meeting -April 10, 2006 Page 3 12.06 and section 12.09, amending section 12.10, and amending sections 5.00 through 5.04 "General Standards for Subdivisions and Developments." Director of Parks & Recreation Stephen Barr presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: ORDINANCE 1444-G -AN ORDINANCE AMENDING CITY OF LA PORTE ORDINANCE NO 1444-C BY AMENDING SECTION 5.00 "GENERAL STANDARDS FOR SUBDIVISIONS AND DEVELOPMENTS' BY REVISING SECTIONS 5.00, 5.01 AND 5.03 BY DELETING SECTION 5.04 IN ITS ENTIRETY; AND BY AMENDING SECTION 12.00 "OPEN SP ACE WITHIN SUBDIVISONS AND DEVELOPMENTS, PARKS AND PARKLAND DEDICATION, SPECIAL USE SITES' BY REPLACING SECTIONS 12.00 THROUGH 12.06 AND SECTION 12.09 AND AMENDING SECTION 12.10; , FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING A SAVINGS CLAUSE AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Council member Griffiths to approve Ordinance 1444-G as presented by Mr. Barr. Second by Council member Moser. The motion carried. Ayes: Mosteit, Moser, Ebow, Engelken, Rigby, Beasley, Clausen, Griffiths and Porter Nays: None Abstain: None 9. Close Regular Meeting and Open Workshop at 6:55 p.m. A. Council received an update on F216 Detention Basin from Wayne Sabo. B. Assistant City Manager John Joerns provided a report on Empowerment Zones and Chapter 380 provisions for economic development. It was the consensus of Council they favored the 380 provision. C. Golf Pro Alex Osmond provided Council and overview of the Golf Course needs for the upcoming budget. 10. Closed Workshop meeting and reconvened Regular Meeting at 7:47 p.m. 11. Administrative Reports City Manager Debra Feazelle reminded council of the Spring Holiday, April 14, 2006, City Offices closing, La Porte Neighborhood 2006 Gala, April 20, 2006 at Sylvan Beach Pavilion, San Jacinto Day re-enactment and Battle of San Jacinto Triathlon, April 22, 2006, Norman Malone Memorial Golf Tournament, April 26, 2006 at Bay Forest Golf Course, Sylvan Beach Day April 29, 2006 and Prayer Breakfast/Ministerial Alliance, May 4,2006 at Senior Center from 7:00 a.m. until 9:00 a.m. Additonally, she reminded Council of the Red Suspender Breakfast on Society fish fry benefiting the Special Olympics on April 22, 2006. 12. Council Comments City Council Regular Meeting and Workshop Meeting -April 10, 2006 Page 4 Griffiths, Ebow, Engelken, Mosteit, Clausen, Rigby and Moser, Beasley and Mayor Porter all had comments. 13. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, 551-087, TEXAS GOVERNMENT CODE (CONSUL T A TlON 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) A. 551.087 - (ECONOMIC DEVELOPMENT) -MEET WITH CITY MANAGER, ASSISTANT CITY MANAGER AND CITY ATTORNEY TO DISCUSS IDA NEGOTIATIONS B. 551.072 - (SALE OR EXCHANGE OF PROPERTY) - MEET WITH CITY MANAGER, ASSISTANT CITY MANAGER AND CITY ATTORNEY TO DISCUSS JV SPORTS COMPLEX WITH CITY OF PASADENA C. 551.074 - (PERSONNEL MATTERS) - CITY MANAGER'S EVALUATION D. 551.071- (PENDING OR CONTEMPLATED LITIGATION) MEET WITH CITY SECRETARY, CITY MANAGER AND CITY ATTORNEY TO DISCUSS TEXAS ATTORNEY GENERAL COMPLAINT. Council went into Executive Session at: 10:55 p.m. 14. There was no action taken during Executive Session. Council adjourned the Executive Session at 10:56 p.m. 15. Council to consider approval or other action regarding amendments to the City Manager's Employment Agreement Ordinance 2613-A. 16. There being no further business to come before Council, the Regular Meeting was duly adjourned at 10:58 p.m. Respectfully submj~ t " J ~~f1:T~C City Secretary Passed and approved on this 24th day of April 2006 ~LX~ Mayor Alton E.Porter B REQUEST FOR CITY COUNCIL AGENDA ITEM AoorODriation Agenda Date Requested: Requested By: Department: Acc't Number: N/A Report: ..LResolution: _Ordinance:_ Amount Budgeted: N/A Exhibits: Request for Proposal #06503 Amout Requested: Exhibits: Bu NO Exhibits: SUMMARY & RECOMMENDATION The City of La Porte has requested proposals from responsible food service and concession co~anies in the area to provide food, beverage, and concession services at Sylvan Beach Pavilion. Bid Proposals were mailed to seven vendors, with one vendor responding. The proposal was opened on March 13, 2006. Staff has reviewed the proposal and determined that Gulf Coast Concessions and Catering submitted a proposal that is advantageous to the City of La Porte. This contract would be for a one year term, with the option for three additional one year tenns. Gulf Coast Concessions and Catering proposes to provide food, beverage, and concession services at Sylvan Beach Pavilion upon request by Pavilion lessees. Gulf Coast Concessions and Catering proposes to pay the City thirty-<>ne percent (31 %) of the gross revenue generated as a result of this contract, up from 27% for the last contract with Gulf Coast Concessions and Catering. The price list submitted by Gulf Coast Concessions and Catering is reasonable though slightly higher on average, than the price list under the previous contract. The City of La Porte has contracted concession services for Bay Forest Golf Course through Gulf Coast Concessions and Catering for the past twelve years, and for the Sylvan Beach Pavilion for the past seven years, with excellent success. They have performed their responsibilities under these contracts in an efficient manner. Staff believes that they will continue to provide excellent service for the City at Sylvan Beach Pavilion and recommends approval of this contract. Action Reauired bv Council: Consider authorizing the City Manager to enter into a concessions agreement with Gulf Coast Concessions and Catering to provide food, beverage, and concession services for the City of La Porte at Sylvan Beach Pavilion as provided by the terms of the agreement APoroved for City Council A2:enda ~~ Det;ra B. Feazelle, City Manag6' 4-,-/2 '-0& Date c REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: C nthia B. Alexander N/A Department: Finance Account Number: N/A Report: Resolution: _Ordinance:-K- Amount Budgeted: N/A Exhibits: tJ ( P, 1\ a Y\ {} C" Amount Requested: N/A Exhibits: Budgeted Item: YES NO Exhibits: f-Y-h I b ({ A SUMMARY & RECOMMENDATION The City Council adopted the Fiscal Year 2005~06 Budget on August 22, 2005. The Summary of funds, which is shown below, represents the amendments which council previously approved to the FY-2005-06 Budget. (*denotes funds with current changes) Original Budget Previously Proposed Amended Budget Amended Budget General Fund $25,987,077 $26,756,553 $26,756,553 Grant Fund 2,793,931 2,886,382 2,936,882* Hotel/Motel Occupancy Tax 334,280 472,143 472,143 Community Investment 190,000 190,000 190,000 La Porte Development Corporation 740,060 740,060 740,060 Tax Increment Reinvestment Zone 36,000 36,000 36,000 Utility 6,774,071 6,811,224 6,811,224 Sylvan Beach 208,683 216,881 216,881 Airport 241,443 241,443 241,443 La Porte Area Water Authority 1,693,956 1,693,956 1,693,956 Go If Course 1,240,740 1,241,835 1,241,835 Motor Pool 1,661,304 2,455,900 2,455,900 Insurance Fund 4,017,103 4,017,103 4,017,103 Technology Fund 956,611 958,068 958,068 General Capital Improvement 433,500 459,485 459,485 Utility Capital Improvement 715,000 732,950 732,950 Sewer Rehabilitation Capital Improvement 330,000 330,000 330,000 Infrastructure Fund 705,000 705,000 705,000 1998 General Obligation Bond Fund 1,207,639 1,207,639 1,207,639 2000 General Obligation Bond fund 1,160,000 1,660,000 1,660,000 2002 Certificate of Obligation Bond Fund 732,789 732,789 732,789 2004 General Obligation Bond Fund 10,000 10,000 10,000 2005 General Obligation Bond Fund 7,700,000 7,700,000 7,700,000 2005 Certificate of Obligation Bond Fund 1,800,000 1,800,000 1,800,000 General Debt Service 2,190,671 2,190,671 2,190,671 Utility Debt Service 381,712 381,712 381,712 La Porte Area Water Authority Debt Service 77L719 77L719 77L719 Total of All Funds $65,013,289 $67,399,513 $67,450,013 lof2 Action Required bv Council: Adopt Ordinance Amending Fiscal Year 2005-06 Budget to amend grant fund by $50,500 due to funding from Governor's Division of Emergency Management and US Dept of Homeland Security. Approved for City Council Aeenda 4--(J -0/0 Date 20f2 ORDINANCE NO. 2762-K AN ORDINANCE AMENDING THE FISCAL YEAR 2005 - 06 ADOPTED BUDGET OF THE CITY OF LA PORTE, PROVIDING A SEVERABILITY CLAUSE, 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. Consistent with Chapter 102, Section 102.010 of the Local Government Code, the Budget adopted by the City Council of the City of La Porte on the 22nd day of August, 2005, in Ordinance No. 2005-2836, is hereby amended. The Budget as amended is attached to this Ordinance as Exhibit "A" and is incorporated by reference herein as if set forth herein verbatim. Sec tion 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. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, and it is hereby declared to be the intention of this city Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared invalid. Section 4. This Ordinance shall be effective upon its passage and approval, and it is so ordered. The City Secretary shall cause the Budget as amended to be filed with the County Clerk of Harris County, Texas, and copies of the amended Budget to be readily available to City Departments, as well as the general public. PASSED AND APPROVED, this~~day of ~, 2006. CI~ OF LA _p~. TE By: ~.\?~ Alton E. Porter, Mayor ATTEST: Lf!laJXibv~ 4/114 Martha A. Gillett City Secretary ~u APPROVED: Knox W. Askins City Attorney 2 7/8 REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: Appropriation Agenda Date Requested: Department: Parks & Recreation Acc't Number: Report: l-Resolution: X Ordinance: Amount Budgeted: Exhibits: Photographs Amount Requested: Exhibits: YES NO X Exhibits: SUMMARY & RECOMMENDATION The City of La Porte has considered a number of potential projects under the Statewide Transportation Enhancement Program, that would benefit the City in a number of ways. Staffhas narrowed the projects down to two: 1) La Porte's Main Street Connection, and 2) Sylvan Beach Railroad Depot and Period Beach House Restoration. Debra Dye and I have prepared the nominations; she will present the first, and I the second for your consideration. . We pr~ose to develop architectural/engineering plans and specifications to stabilize and restore the original Railway Depot (built in 1896) at Sylvan Beach to its original condition. The Depot is a tremendous example of early transportation development in Texas. M.E.P. engineering and structmal inspection of the integrity of the building and subsequent design. is warranted. The Depot interior has been changed over the years as it was adapted to other uses. Architectma1 inspection and design services to restore its interior and exterior to original conditions as when it was a railroad depot is our goal A period beach house (built in the early 1900's) and outbuilding, typical of smmner homes built by Houston families along the Galveston Bayfrom. have been donated to the La Porte-Bayshore Heritage Society. We propose to move the house to a site adjacent to the Depot on land owned by the City of La Porte, helping to create a Heritage Park at the entrance to Sylvan Beach Park. W e pr~ose to restore the interior and exterior to its original configuration and to seek finniture and fixtures that are cotq>atible with its original pmpose with the same methodology as the Depo~ with AD. A and vehicle accessibility. As a part of the Project Stars and San Jacinto Texas Historic District, this Heritage Park will draw additional visitors to our area, thereby boosting economic benefits to local residents and businesses as well as educational benefits to the visitors. School tours, tourist activity is expected to increase dramatically as these initiatives begin to come on line, including this project Cultural understanding is an itq>ortant part of this package. The rehabilitation and operation of these historic facilities will continue to enrich the lives of all citizens of Texas. The Depot is already operated (limited) as a museum and the La Porte-Bayshore Heritage Society has a wealth of information, artifacts, and knowledge about the early history and heritage of La Porte and Texas. The Society owns the Depot structure and the City owns the land with the help of Kaneka Texas Corporation through purchase of 2 remaining lots for the tract. Without assistance from other sources, the Depot will deteriorate to the point where it cannot be saved It is not far from that point now. The same statement can be made for the historic beach house. This is a one time offer from a local benefactor; if it is not acted on, the house will be lost forever. Cost estimates have been reviewed by an architect and, as in the case of the Main Street/San Jacinto Street project, they have been increased to reflect escalating costs of materials and equipment that WIll be necessary for restoration. The project is expected to cost approxiImtely $1.5 million. The City's share would be 20010 of that cost, if approved, or $300 thousand Also, the City would conunit to funding all costs over the $1.5 million limi~ should the CouncIl decide to proceed. There are currently no funds budgeted for either of these projects. Action Reauired bv Council: Give direction and consider a Resolution authorizing the submission of two nominations for the Statewide Transportation Enhancement Program administered by TxDOT, connnitting the City to fund the 20% match in accordance with established guidelines. Aooroved for City Council kenda d4~v &ku~ Debra B. Feazelle, City Manager If-/2-7J~ Date CITY OF LA PORTE RESOLUTION 2006-lL A RESOLUTION OF THE CITY OF LA PORTE APPROVING SUBMITTAL OF TWO NOMINATIONS TO THE TEXAS DEPARTMENT OF TRANSPORTATION, STATE~DE TRANSPORTATION ENHANCEMENT PROGRAM, 2006 CAL~ MAKING VARIOUS fINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPUANCE ~H THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City of La Porte, Texas desires to submit 2 applications: 1) La Porte's Main Street Connection, and 2) Sylvan Beach Railway Depot and Period Beach House Restoration, and WHEREAS, the enhancement programs proposed will be beneficial to both residents and travelers through the City of La Porte by improving the aesthetics, increasing tourism appeal, providing for restoration and preservation of our heritage and history, and providing educational opportunities for both young and old, and WHEREAS, the City of La Porte desires to establish its commitment to pledge the 200/0 match and 1000/0 of any costs over the approved funding levels to be set forth in a forthcoming Advance Funding Agreement with the Texas Department of Transportation, in accordance with the Statewide Transportation Enhancement Program guidelines if awarded, and WHEREAS, the City of La Porte commits to the project's development, implementation, construction, maintenance, and financing, should the projects be approved; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE; that the City Manager is authorized to execute all documents necessary for the submission of the two nominations designated herein. 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 dty 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. Page 1 of2 Resolution No. 2006- 1/ PASSED AND APPROVED THIS THE 24th DAY OF AP~ 2006. 0 ~L<\~ ALTON E. PORTER, MAYOR ATTEST: CITY OF LA PORTE ~N~ MARTH GIllETT CITY SECRETARY Page 2 of2 "- .... c CD ~<( CJ ca .... <( """ .. ...., o 0- Q) C ..r::. (,) CO Q) m c: CO > ~ en o ~ :> \.0 ~ CD 64, ~ .a ~ -g (1) € o % .. -0 ~ o -5 co (1) co ~ z. 6i <.0 ~ CD 64( -a ~ ~ ~ 8 ~ o '"d ~ ~ "en ~ eD ~ .. ~ 0- eD o {; 1 ~ z a> \ \ \ Attachment A Original La Porte Library Sylvan Beach Depot, from southeast, showing 7 Original La Porte Library building, on site ~ CD Cc( ~ ~ ~ cr ~\ 01 PilI ~J}--- I )..~--? ~ - ~ 4. 1i '.:2.. ___ - ----- I~~' \ CV "I .t=I aJ -5 1) ~ ~ ~ ~ - 1 """ o .c ~ .5 C 0) """ """ E .. -0 0- 0) o -5 en 0) CO ~ z 6> t fA ~ ~ ~ 't~ Attachment A if cottages were built on the grounds to accommodate those who preferred to stay weekends or vacations. Period photo showing some of the original Beach Cottages Located at and around Sylvan Beach 9 Attachment .A Current View of original beach house, located at 215 Sylvan, this is the south side of structure 10 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 24, 2006 Appropriation Requested By: Debra Dye Source of Funds: Department: CMO Main Street Program Acc't Number: Report: ~Resolution: X Ordinance: Amount Budgeted: Exhibits: Photographs Amount Requested: Exhibits: Bud!!"eted Item: YES NO X Exhibits: SUMMARY & RECOMMENDATION Below is a summary of the La Porte Main Street Connection which the City Council took under consideration on January 23. 2006 and approved moving forward with applying for the Texas Department of Transportation's Statewide Transportation Enhancement Program: I. STREETSCAPE - This portion will impact the North and South sides of West and East Main Street and includes new sidewalks, bump outs, angle parking, single lanes of traffic, ramps, curbs, landscaping, irrigation, infrastructure replacement, dropping the power lines under ground, new pedestrian and traffic lighting with decorative elements, wayfinding signage, street signs, benches, trashcans, decorative intersections, cross walks, and stop lights, abandonment and replacement of the 50 year old 4" waterline in the right-of-way with 8" line to be located in the north alley. II. WALKWAY - This portion will impact San Jacinto Street, from Main Street to Park Street, and includes installing a sidewalk with landscaping and irrigation, pedestrian lights with decorative elements, and benches along the southwest side of San Jacinto. This is part of the hike and bike trail previously approved by City Council and voted on by the citizens, it will also begin connecting with sidewalks along the Safe Routes to School route along Broadway. This project will help connect the neighborhoods surrounding Main Street and San Jacinto to downtown and the bay by making the entire area walkable and enjoyable. Much of this area is not serviced with sidewalks, making it difficult to travel on foot from one location to another. By making this an attractive, practical asset it will increase the quality of life for the community and be a draw for visitors and tourists. One of the by-products will be a high impact visual enhancement which will aid in revitalizing our historic downtown and serve as an economic driver in La Porte and the region. This will help define La Porte as a tourist destination and enable us to partner with other entities to keep tourism dollars in this region. This project will cost approximately $5 million dollars, with the City of La Porte being responsible for 20% of the project, or approximately $1 million dollars. It should be noted that any cost overruns must be funded entirely by the match partner, so the City would be obligated for 100% of any cost overruns for approved projects. The estimated time of completion for funded TXDOT STEP programs are 2011. The potential of overruns are great with inflation being a factor - we have added 30% to the figures to help accommodate the inflation, but it remains to be seen if that is enough. Action Required bv Council: Give direction and consider a Resolution authorizing the submission of two nominations for the Statewide Transportation Enhancement Program administered by TxDOT, committing the City to fund the 20% match in accordance with established guidelines. Approved for City Council Aeenda Deei~~cf~~q~ ~ lf -/8 -of;:, Date Harris County Location Map Attachment A 'Property Description 'La Pf)rte Project Site La Porte's Main Street Connection Attachment A This could be San Jacinto Day park opening, a July 4th crowd. or Labor Day, traditional end of the regular season. Note the cars parked all the way up to the shoreline at right in the final section of this panoramic view. ~, '. '. '" t., ;-;.,;,,~ , . Period Picture of Sylvan Beach Railway Depot taken in early 1930's Easy to see why the trains stopped coming... 3 -. ..,.:-'<{-7 "~~ - ; l . -- I tIIIiIF . .11' II 11; . ..... ,'~ ;c i!1I!!!il IiIIil ,.jf~tt1J~....... :_11I'. l.._: .!JilI"II'-!) ~o i:!iC~R'~," .......1...... ". ;~A" .. · . - I'" '! ,:.. \~\.:j.-~.c" .rr-' _.. .' ".''<. .-.,i','!il' II ?" .. (~lLI. .ERl" .1iiI.~~ ';E,'7 -..11I. _ ,. .. ,'.'1 ,,-;;;~. 'II.. ..... '1f1...;"" .,'" .:El.. . ..' :;~:'c -f' IIII! ...... lid.!,:, I!!I!'!,-" Er' .. - "1': 'g "- .. .', .. . "~'. ."" . II!':' 11III ..., .. . .,%~ ..ll!- .. ~ ~. :fM I . . . :'. ..' II'.' :,~.;c)~t >t~". .::~.I!Ii;-:^....T ill' ~ ' . ... ,,"::\;.,~,:~;'c;"J - ... -'--~ IE." " ';~~:,,"f Iiil~" .... :... II -.- ..... ...-... '''... ..II>.>,.~~~{~ .',. .f......"" .,.. _ -. ~ ...~; .' .!!!il=~~".,,,,,,,'1 c. _...';:.....,~ ".' . 11I""''- ."" "IID~ .... ~.:=I .W~ia I L!!!'~~:i" -:'-1 .. _..., .,~._'~ I., ~.,'.~.~ 1.1' 'Ht~l~'~ 1..11I, "..) ." '":""'. ...F',~~ ',~,,~, ~'.. t.=..,...a;~~.~~I; :T;:f--.~ ]: ~I~t~I:j_-;;;;:::Z-,:,i;':;:;-"::I;o~,~ - .j,.l.~"='" . . . i.,'fnSi ,.,,",. . ,.'" ,>,-,"",C,._ _" I..... ,'.:OC".'" :: ._.:...~!lI ._. ." ..J: JI~';'~~ . .. ,- 7_ "i_... ";:-. r.,:._;~~~n1;V "';;S~ f;~.'~ '-..'~ II,: ~ :-'." ,,:. '"ij Ji.ll,.:......~,. ,"<;f.}~'; . . . . - ih~;c:'A~~ '''.__:-'_. ,11II.110" ':?T.~(IIIi:.-. rlll'....:-.:-::II..IIl.~,i'Iiliii',..: ._. ~..~. i . ..<;';, - .~:.'!."'" . .- _._ . .. .,-'" II~' . _ ~ .. -"11 EI IIfl=lI -BIiII' 1I!l',-"II,. \ L." .'1liiI ~ ~~ _.. ..' ..' ._. : lIB III ill ' I ',....~ f'''-,. 1lI!!, ~'" ._' .__ _ .-.. .' ~.. rIA 1lI!I."1I1_ · "R ::1811, ",- .. .: II.. -. - . -.... III .1Ii. . ' ~._ I _ I ,--::Ei. ... II I.- 12. ~ _!':ii~ III - II"'~"! ~ ,_, ,~I _. ........11I _~_ II! II... _. ~... ~~,,~IIIll1B .B. , ,tl """.11_- "'IS' '_.' __ .. ill E'? "o' ,^ liII 0 Ell __, 'F:'I'~.' '...' II ."_1 .. - - -.,~' .. " F':' ',<'''' ,-,",<'-,.' -.. ".,>c,~-!';;;ij4,,,,,,"..',,,r-~. . ,Ii :." ::!r" ,:-" '.t~_. "i.'~.," -:-_...-. .. 'I. .;.. ~c ~ _~tl,J "~" -:',(' ..: :113.11;.::.... n ,,'..; 1 ~~, .,IiI. C.....II ..... ......'..... '.". '., .",".,. .";;,D..... I:.. .~> I'I!I." "I'...';r.~....~."... "'T'" .......j... .""II~__';;."~ ..r,_,," "..~. .~:"., .. :.....: .~' _"'1 _... i"'" .' ....... ".- '!lI!. I i .._.....'~O. .... ., ..' . _. _ ..... \~c' <," :...... .:'. _._. ' 1Iiiiil. ~_ ....". ..J:- .@...~..":.,.. :.11" .';',.'. ....: '.'- '~', ;@::LIJ:l.....,_..,..."..: "'...~.': .' .:., , II ~'?_~:':i B:;a., ., _~', ." I'.' ......~;.. .' '..... I ;' 'II..RI .. ~.,~...L.'_,,:'_'....".',2.~..~;.~ ,...'...;-;:.....!!!lI~'" ;:. .:;. .'.,.~~._.!lI I~'I .'II!> .. ,\l"':"~"_" ,', .n"II.~..-;.. .. .... .~~~ ."." !!I .. . "d.~'>',g. ~..i...~r........... ..................................1.' . .-.~'~ ~-~II.. .,~: ..~..'-.,IIi. II -,ii] .:.,: r'~. '.. ;~i...~.~.....'~.". .50 ...".. .:...-- · .' III -. "".. . ~" ...@...; .,,~D .'C a" ~IIII' 'I: .'~' ~4~~; .... ,., .=_.'.:'-:....i;'iIIII"'W'".!.. :,:._-:;IiII:;'l:'i:",-r~-~2-;'~_"'..."j-:"~olll!!l"Ii!I'II.. rl II , ,:\J ~ e ..... :~,~. II _,.. _~ I ~ ,. ~ -,I_ 1iIIIII_. II -;~ . I. !III . . 11 'J~" 'IB~ 1 . r,' ....... ~-. .>.~f-:-..-" ..". .,., .. '... ..' .:,. ~ I ii...-IL' .: .... ~-""." ,:-". ,T';;(I" "_' I 1I!l'. l~ L~-'~_~~ .. _.. _; ;;.!!';"4~!Il;r,\1l'l!!!~!!:lIl~ilC~...~~ , :@ . I --~"V &,1 .. -. ...-I~fi _ t) !-:' .. '-1. ~r;j ~ r''''.'' ?-':'r t,.!:: ~: ~ 'dlf i ~~:' - ,~;.::..... f:E- :';,!.? ,j . . -.' I ' . I -- iii. .<.,~-/., i~'-':~;~~:-- .. .'., --~"'; ."......~.~~...,' ~'-.."N.._. " " ~ , '-':i- :c'" , ~ ~ /"\A? 7>F l"KDJ~T ?..ItR...-rs; '5 !'9EvJA L(5) I tJTE K~a::-ll oAJ 5 , I . ~_.......- "~~...--_.._.-.- E.NO Of MAIN STREET OISTRIct 9 REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: C nthia Alexander Asst Cit Department: FINANCE Appropriation Agenda Date Requested: March 24, 2006 Source of Funds: NtA Account Number: Nt A Report: Resolution: Ordinance: xx Amount Budgeted: Amount Requested: N/A Exhibits: Budgeted Item: Exhibits: SUMMARY & RECOMMENDATION At this time, we would like to issue Certificates of Obligation Bonds for the following projects: Police Headquarters Sports Complex Trunk Sewer Main Water and Sewer Improvements Total 2,800,000 2,000,000 650,000 350,000 $5,800,000 :-- We are requesting consideration and approval of an ordinance authorizing the issuance of City of La Porte Texas Certificates of Obligations, Series 2006. Action Required bv Council: Approve Ordinance authorizing the sale of $5.8 million in Certificates of Obligation Approved for City Council Agenda L/ -' (q-(J& Date ~g 10, ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 2006; AND CONTAINING OTHER MATTERS INCIDENT THERETO BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: ARTICLE I FINDINGS AND DETERMINATIONS Section 1.1: Findings and Determinations. The City Council hereby officially finds and determines that: (a) The City of La Porte, Texas (the "City"), acting through its City Council, is authorized pursuant to and in accordance with the provisions of Texas Local Government Code, Chapter 271, Subchapter C, as amended (the "Act"), to issue certificates of obligation to provide all or part of the funds to pay contractual obligations to be incurred for the construction of public works and the purchase of materials, supplies, equipment, machinery, buildings, land and rights- of-way for authorized needs and purposes and for the payment of contractual obligations for professional services, to wit (i) construction of a Police Headquarters located at 23rd Street and Spencer Highway in the City, (ii) construction of a new Sports Complex located on the south side of Spencer Highway and the eastside of Spring Creek Gulley in the City, (iii) construction of a trunk sewer main on Weens Boulevard, (iv) various additional water and sewer improvements within the City, and (v) professional services rendered in connection with the above listed projects. (b) The City Council authorized the publication of a notice of intention to issue City of La Porte, Texas, Certificates of Obligation, Series 2006 (the "Certificates") to the effect that the City Council was tentatively scheduled to meet at 6:00 p.m. on April 24, 2006 at its regular meeting place to adopt an ordinance authorizing the issuance of the Certificates to be payable from (i) an ad valorem tax levied, within the limits prescribed by law, on the taxable property located within the City, and (ii) the revenues to be derived from the City's water and sewer system (the "System") after the payment of all operation and maintenance expenses thereof (the "Net Revenues") in an amount not to exceed $1,000, to the extent that ad valorem taxes are ever insufficient or unavailable for such purposes, provided that the pledge of Net Revenues is and shall be junior and subordinate in all respects to the pledge of Net Revenues to the payment of any obligation of the City, whether authorized heretofore or hereafter, which the City designates as having a pledge senior to the pledge of the Net Revenues to the payment of the Certificates. (c) Such notice was published at the times and in the manner required by the Act. (d) No petition signed by at least five percent (5%) of the qualified voters of the City has been filed with or presented to any official of the City protesting the issuance of such Certificates on or before the date of passage of this Ordinance. 1 (e) The City has determined that it is in the best interests of the City and that it is otherwise desirable to issue the Certificates to provide all or part of the funds to pay contractual obligations to be incurred for the purposes authorized by the Act. ARTICLE II DEFINITIONS AND INTERPRETATIONS Section 2.1: Definitions. As used herein, the following terms shall have the meanings specified, unless the context clearly indicates otherwise: "Act" shall mean Texas Local Government Code, Chapter 271, Subchapter C, as amended. "Attorney General" shall mean the Attorney General of the State of Texas. "Certificate" or "Certificates" shall mean any or all of the City of La Porte, Texas, Certificates of Obligation, Series 2006, authorized by this Ordinance. "City" shall mean the City of La Porte, Texas, and, where appropriate, its City Council. "City Council" shall mean the governing body of the City. "Code" shall mean the Internal Revenue Code of 1986, as amended. "Comptroller" shall mean the Comptroller of Public Accounts of the State of Texas. "Debt Service Fund" shall mean the fund by that name created pursuant to Section 5.2 hereof. "Fiscal Year" shall mean the City's then designated fiscal year, which currently is the twelve-month period beginning on the first day of October of a calendar year and ending on the last day of September of the next succeeding calendar year and each such period may be designated with the number of the calendar year in which such period ends. "Interest Payment Date," when used in connection with any Certificate, shall mean March 15, 2007, and each March 15 and September 15 thereafter until maturity or earlier redemption of such Certificate. "Issuance Date" shall mean the date on which the Certificates are delivered to and paid for by the Underwriters. "Ordinance" shall mean this Ordinance and all amendments hereof and supplements hereto. "Outstanding," when used with reference to the Certificates, shall mean, as of a particular date, all Certificates theretofore and thereupon delivered pursuant to this Ordinance except: (a) any Certificates canceled by or on behalf of the City at or before such date; (b) any Certificates 2 CERTIFICATE FOR ORDINANCE THE STATE OF TEXAS COUNT Y OF HARRIS CITY OF LA PORTE ~ ~ ~ We, the undersigned officers of the City of La Porte, Texas (the "City"), hereby certify as follows: 1. The City Council of the City convened in a regular meeting on April 24, 2006, at the regular meeting place thereof, within the City, and the roll was called of the duly constituted officers and members of the City Council, to wit: Alton E. Porter Mike Mosteit Barry Beasley Mike Clausen Howard Ebow Chuck Engelken Peter Griffiths Tommy C. Moser Louis Rigby Mayor Mayor Pro Tern Council Member Council Member Council Member Council Member Council Member Council Member Council Member and all of such persons were present, thus constituting a quorum. Whereupon, among other business. the following was transacted at said meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 2006; AND CONTAINING OTHER MA TIERS INCIDENT THERETO (the "Ordinance") was duly introduced for the consideration of the City Council. It was then duly moved and seconded that the Ordinance be adopted; and, after due discussion, such motion, carrying with it the adoption ofthe Ordinance, prevailed and carried by the following vote: AYES: 2. NAYS: Q ABSTENTIONS: Q 2. That a true, full and correct copy of the Ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that the Ordinance has been duly recorded in the City Council's minutes of such meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of such meeting pertaining to the adoptip),n of the Ordinance; that the persons named in the above and foregoing paragraph are the duly chosen,'~~~alified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and subject of the aforesaid meeting, and that the Ordinance wopld be introduced and considered for adoption at such meeting, and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; that such meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of such meeting was given as required by the Open Meetings Law, Chapter 551, Texas Government Code. HOU:2570085.1 PASSED AJ'lD ADOPTED tbis April 24.2006. ATTEST: .: (SEAL) ~ CITY OF LA PORTE, TEXAS ~~X~ M.ayor S*l ------~---- - ~--~->'-- ."A \ ~ ~fl HOU:648931.1 CITY OF LA PORTE, TEXAS CERTIFICATES OF OBLIGATION SERIES 2006 TRANSCRIPT OF PROCEEDINGS Andrews Kurth LLP 600 Travis, Suite 4200 Houston, Texas 77002 (713) 220-4200 10 REQUEST FOR CITY COUNCIL AGENDA ITEM Report: Resolution: Ordinance: xx Appropriation Agenda Date Requested: March 24. 2006 Requested By: Cynthia Alexander. Asst City Mana2er Department: FINANCE Source of Funds: N/ A Account Number: N/A Amount Budgeted: Amount Requested: N/A Exhibits: Budgeted Item: Exhibits: SUMMARY & RECOMMENDATION At this time, we would like to issue General Obligation Bonds for the following projects: Parks Improvement $1,200,000 We are requesting consideration and approval of an ordinance authorizing the issuance of City of La Porte Texas General Obligations Bonds, Series 2006. Action Required bv Council: Approve Ordinance authorizing the sale of $1.2 million dollars in General Obligation Bonds Approved for City Council Agenda ~JJ ~ -17 --()0 Date Atro ORDINANCE AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2006; AND CONTAINING OTHER MATTERS INCIDENT THERETO BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: ARTICLE I FINDINGS AND DETERMINATIONS Section 1.1: Findings and Determinations. The City Council hereby officially finds and determines that: (a) The City of La Porte, Texas (the "City"), acting through its City Council, is authorized by its Home Rule Charter and the Constitution and laws of the State of Texas, particularly Chapters 1331 of the Texas Government Code, as amended, to issue bonds for the purpose of making needed public improvements; (b) The issuance of the bonds herein authorized was approved by the voters of the City at an election held for such purpose on February 2,2002 (the "Election"); (c) The City Council canvassed the returns of the Election and by Ordinance adopted February 5, 2002, declared the results to be in favor of the issuance of such bonds; (d) The City has now determined that it is necessary and advisable to authorize, issue and deliver such bonds in the principal amount of $ (which takes into account the principal amount of the Bonds of $ plus a premium on the Bonds of $ ); (e) The City Council is of the opinion and hereby affirmatively finds that it is in the best interest of the City to issue bonds in the amounts and for the purposes herein stated. ARTICLE II DEFINITIONS AND INTERPRETATIONS Section 2.1: Definitions. As used herein, the following terms shall have the meanings specified, unless the context clearly indicates otherwise: "Act" shall mean Chapters 1331, Texas Government Code, as amended. "Attorney General" shall mean the Attorney General of the State of Texas. CERTIFICATE FOR ORDINANCE THE STATE OF TEXAS COUNT Y OF HARRIS CITY OF LA PORTE ~ ~ ~ We, the undersigned officers of the City of La Porte, Texas (the "City"), hereby certify as follows: y' 1. The City Council of the City convened in a regular meeting on April 24, 2006, at the regular meeting place thereof, within the City, and the roll was called of the duly constituted officers and membe~bf the City Council, to wit: Alton E. Porter Mike Mosteit Barry Beasley Mike Clausen Howard Ebow Chuck Engelken Peter Griffiths Tommy C. Moser Louis Rigby Mayor Mayor Pro Tern Council Member Council Member Council Member Council Member Council Member Council Member Council Member and all of such persons were present except Ai /A , thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written ORDINANCE AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2006; AND CONTAINING OTHER MATIERS INCIDENT THERETO (the "Ordinance") was duly introduced for the consideration of the City Council. It was then duly moved and seconded that the Ordinance be adopted; and, after due discussion, such motion, carrying with it the adoption of the Ordinance, prevailed and carried by the following vote: AYES: !1 NAYS: D ABSTENTIONS: D 2. That a true, full and correct copy of the Ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that the Ordinance has been duly recorded in the City Council's minutes of such meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of such meeting pertaining to the adoption of the Ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and subject of the aforesaid meeting, and that the Ordinance would be introduced and considered for adoption at such meeting, and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; that such meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of such meeting was given as required by the Open Meetings Law, Chapter 551, Texas Government Code. HOU:2570074.1 (SEAL)*' HOU:2570074.1 SIGNED AND SEALED this April ~ ~. , 2006. \. ~. ~eIf;LlI a .. City ecretary City of La Porte, Texas 8-1 ,...- .- REQUEST FOR CITY COUNCIL AGENDA ITEM ~ Approoriation Agenda Date Requested: 04/24105 Requested By: D. Wilmore c;J~ Source of Funds: N/A Department: Planning Account Number: Report: X Resolution: Ordinance: X Amount Budgeted: Amount Requested: Exhibits: Recommendation Memo from Board Budgeted Item: YES NO Exhibits: Code Commentary, Connector Information & Poll Exhibits: Ordinance #96-2079-1 SUMMARY & RECOMMENDATION At the April 10, 2006 City Council meeting staff was directed to prepare an ordinance to implement a local amendment to address boring/notching of studs (both exterior and interior walls) for residential and non-residential structures. As directed by Council, staff has prepared Ordinance #96-2079-1 which adopts amendments as recommended by the Building Codes Appeals Board (BCAB). For your convenience, we have included the BCAB memo and backup originally provided at the April 10, 2006 meeting along with Ordinance #96-2079-1. The ordinance language establishes a local city amendment to require a minimum 6" stud walls where drain, waste & vent (DWV - Horizontal and/or Vertical) plumbing is installed. The use of 2X6 studs (wood or metal) shall be required for new construction and additions (addition of square footage) for both residential and non-residential construction where DWV plumbing is installed In accordance with past practices, the ordinance has a 60-day implementation period (effective June 24,2006) to allow mail notification to building contractors as well as counter handouts for the public. Action Required bv Council: Consider approval of Ordinance #96-2079-1. 0-fi --O~ Date ORDINANCE NO. 96-2079-1 AN ORDINANCE AMENDING CHAPTER 82 OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE BY AMENDING CHAPTER 82 "BUILDINGS AND BUILDING REGULATIONS," ARTICLE II "BUILDING CODES", TO ADD A NEW SECTION 82-37 "MINIMUM SIZE STun WALLS WHERE DRAIN, WASTE, AND/OR VENT PLUMBING IS INSTALLED" AND TO AMEND SECTIONS 82-37-82-65 "RESERVED"; PROVIDING A REPEALING CLAUSE; CONTAINING A SAVINGS CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING A SEVERABILITY CLAUSE; PROVIDING THAT ANY PERSON VIOLATING THE TERMS OF THIS ORDINANCE SHALL BE DEEMED GUILTY OF A MISDEMEANOR AND UPON CONVICTION SHALL BE FINED IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS; PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. New Section 82-37 is hereby added to the City of La Porte Code of Ordinances Chapter 82 "Buildings and Building Regulations", Article II, "Building Codes", and shall hereinafter read as follows, to-wit: "Section 82-37. Minimum size stud walls where Drain, Waste and/or Vent plumbing is installed. Minimum six-inch (6") stud walls shall be required where drain, waste & vent (DWV - Horizontal and/or Vertical) plumbing is installed. The use of 2X6 studs (wood or metal) shall be required for new construction and additions (addition of square footage) for both residential and non-residential construction where DWV plumbing is installed." Section 2. Sections 82-37-82-65, "Reserved", of City of La Porte Code of Ordinances Chapter 82 "Buildings and Building Regulations", Article II, "Building Codes", is hereby amended and shall hereafter read as follows, to-wit. "Section 82-38-82-65. Reserved". Section 3. All ordinances or parts of ordinances inconsistent with the terms of this ordinance are hereby repealed; provided, however, that such repeal shall be only to the extent of such inconsistency and in all other respects this ordinance shall be cumulative of other ordinances regulating and governing the subject matter covered by this ordinance. Section 4. If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Ordinance shall, for any reason, be held invalid, such invalidity shall not affect the remaining portions of this Ordinance, and it is hereby declared to the intention of this City Council to have passed each section, sentence, phrase, or clause, or part thereof, irrespective of the fact that any other section, sentence, phrase, or clause, or part thereof, may be declared invalid. Section 5. Any person, as the term "person" is defined in Section 1.07 (27), Texas Penal Code, who shall violate any provision of the ordinance, shall be deemed guilty of a misdemeanor and upon conviction shall be punished by a fine not to exceed TWO THOUSAND DOLLARS ($2,000.00). Section 6. This Ordinance shall be effective sixty (60) days after its passage and approval. The City Secretary shall give notice of the passage of this ordinance by causing the caption hereof to be published in the official newspaper of the City of La Porte at least twice within ten (10) days after the passage of this ordinance. Section 7. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject ofthis meeting ofthe City Council is posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Chapter 551, 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. PASSED AND APPROVED this the t).1f- day of ~_ ,2006. CITY~.F. LA POR~~ By: ~~->.. \~ Mayor ATTEST: ~di:/kL~ City Secretary AP~ ~ -r ~4~/j City Attorney 2 I' Memo To: Honorable Mayor and City Council Tom Campbell~irman ofthe Building Codes Appeal Board Building Codes Appeals Board Members; Debbie S. Wilmore, Chief Building Official; Wayne Sabo, Director of Planning; Debra B. Feazelle, City Manager; John E. Joerns, Assistant City Manager; Cynthia Alexander, Assistant City Manager 3/29/2006 Local Amendment to the Building Codes From: CC: Date: Re: In November 2005, the Board began discussion regarding a possible local residential and commercial building codes amendment to require minimum 6" stud walls where drain, waste & vent (DWV - Horizontal and/or Vertical) plumbing is installed. As Board Chairman and a state licensed master plumber, I recognized the need for change and suggested the local amendment. My concern is boring/notching of studs to accommodate plumbing work (see sketch attached). We discussed this subject at four (4) meetings and although a poll of surrounding cities (see attached list) did not reveal this type amendment in other cities, the Board developed a recommendation for Council's consideration. It is as follows: Amend the 2003 Ed. of the International Residential Code (IRe) and International Building Code (IBe) to require minimum 6" stud walls where drain, waste & vent (D WV - Horizontal and/or Vertical) plumbing is installed. To accommodate some Board concerns that the regulations would be too restrictive on existing buildings, we are providing the following language for clarification. The use oi2X6 studs (wood or metal) shall be required for new construction and additions (addition of square footage) fOr both residential and non-residential construction where DWV olumbing is installed. The Board recommends Council support the amendment as outlined in this memo and direct staff to prepare an ordinance with a 60-day implementation period. This delay would allow mail notification to building contractors as well as counter handouts for the public. As Chairman, I plan to attend the Council meeting and be available for questions. FIGURE R602.6(1) - R602.7 :i ;;1 ~:~ ! ~i ~II :'1 ,:i 11 .;j ~i 51 U 'I il :1 :/ 'j ) f . i I I I I , I I Ii ! 5fa IN. MIN. TO EDGE NOTCH MUST NOT EXCEED 25 PERCENT OF STUD DEPTH BORED HOLES SHALL NOT BE LOCATED IN THE SAME CROSS S~CTION OF CUT OR NOTCH IN STUD For SI: 1 inch = 25.4 mm. Note: Condition for exterior and.bearing walls. STUD 5fa IN. MIN. TO EDGE IF HOLE IS BElWEEN 40 PERCENT ~ND 60 PERCENT OF STUD DEPTH. THEN STUD ~ MUST BE DOUBLE AND NO MORE THAN TWO ~ ,SUCCESSIVE STUDSARE DOUBLED AND siT':: BORED v G~URE R602.6(10 NOTCHING AND BORED HOLE LIMITATIONS FOR EXTERIOR WALLS AND BEARING WALLS .:. See the commentary for Section R602.6. the top plate by more than 50 percent of its width, a galvanized metal tie of not less than 0.054 inches thick (i.37mm) (16ga) . and 1112 inches (38mm) wide shall be fastened to each plate across .and to each side of the opening with not less than eight 16d nails at each side or equivalent. See Figure R602.6.1. Exception: When the entire side of the wall with the notch or cut is covered by wood structural panel sheathing. . .:. In many cases, drilling or notchinq of the top plate is r:!.ecessary to allow plumbing, heatino or other pipes to ~'. . , "l2...e placed WIthin the exterior walls and load-bear/no in-," . terior walls. When drilling or notching the top plate by ----- ,:' more than one-half its width is necessary. strapping across the fates as illustrated in Fi ure R602.6.1 is required to provide top plE.ltecontinuity and to retain Jbe structural integrity of the wall system as a whole. In the case of a double to late, ani the u er ofthe two plates needs to have a strap installed as described. R,602'.7 Headers. For heade,r spans see T~bles RS02.5(1) and RS02.5(2). . . . .:. At a wall opening, headers are required to transfer .' loads. received from the wall and floors/roof to the . foundation.' Framing over openings such as doors or . 2003 INTERNATIONAL RESIDENTIAL COOE<!!i COMMENTARY-VOLUME 1 6-14 FIGURE R602.6.1 - TABLE 602.7.2 EXTERIOR OR BEARING WALL ~ 16 GAGE (0.054 IN.) AND 1.5 IN. WIDE METAL TIE ACROSS AND TO EACH SIDE OF THE NOTCH WITH 8-16d NAILS EACH SIDE PIPE For SI: 1 inch = 25.4 mm. , c;;;,RE R602.6.~ TOP PLATE FRAMING TO ACCOMMODATE PIPING .:. See the commentary for Section R602.6.1. fished based on the .construction of the header, the header depth, and the depth of the house. Note "a" to the table explains the depth criteria; which is based on a single story with a clear-span trussed roof or a two-. stoiyin which part of the load from the floors and roofs is supported by interior bearing walls. House depth is based on the span from the header to an interior bear- ing wall or the opposing exterior waiL 2-inchcby-4-inch (51 mm by 102 mm) member may be used as a, header in interior or exterior nonbearing walls for openings up to 8 feet (2438 mm) in .width if the vertical distance to the parallel nailing surface above is not more than 24 inches (610 mm). For such nonbearing he'a:ders, no cripples or blocking are required above the header. ' " R602. 7.2 N onbearing walI:s. Load-bearing headers are notre- quired in interior or exterior nonbearing walls. A single flat .:. In walls that are not supporting significant loads, the code provides a simple (more economical) option for constructing headers, TABLE R602.7.2 ' .., MAXIMUM SPANS FOR WOOD STRUCTURAL PANEL BOX HEADERsa " HEADER DEPTH HOUSE DEPTH (feet) HEADER CONSTRUCTIONb (inches) 24 26 , 28 ,3D 32 Wood structural panel-aile side 9 4 4 3, 3 - 15 5 5 4 3 3 Wood structural panel-both sides 9 7 5 5 4 3 15 8 8 7 7 6 J .j j I 1 J For S1: 1 inch = 25.4 =, 1 foot = 304.8 mID. a. SP1lIlS are. based on single story with clear-span trussed roof or two-story with floor and roof supported by interior-bearing wails. b. See !<igureRi5o.2.7.2 f~r c;?n~truction details. ' .:. See the commentary for Section R602.7.1. 6-16 . 2003 INTERNATIONAL RESIDENTIAL CODE@.COMMENTARY-VOLUME, 1 i 1 t~!:[M7fJiiidii~bt~)i:!;*;B~;I~~\~~\~;;~;i;;?;:~;;;~;';),&~f';-;}~i!.;{?i;t:~i,i;:t1~t0~;lt~lf5.i~t~~?4~~ilf$fB:a;;~~;f~~!i~ittJt~~~fJ{Rif.~iJj;,t01~f~!W&%!j:;;1);;%;ru ml11EII HSS/5S Stud Shoes - Stud Shoes reinforce studs notched in construction. They are NOT a total replacement of removed material. Installs over pipe up to 2%' outside diameter. HSS2-3 is designed for tripie 2x studs. HSS Stud Shoes provide tension load capacity as well as increased compression loads. Fiared flange provides greater strength. MATERIAL: 16 gauge. FINISH: Galvanized. INSTALLATION: Use all specified fasteners. See General Notes. . HSS: Bend flanges at 900 angle during installation, then bend back and screw into position (screws supplied). . Bend flanges one cycle> only. ..,/ . CODES: See page 12 for Code Listing Key .Ghart. HSS2-SDS1.5 (16 gauge) Heavy stud shoes to reinforce and protect single 2x studs where pipe is located. Uses 12 SDS% x11f2 screws (included). International Residential Codee- 2000/2003 R602.6 and P2603.2.1 International Building Codee. 2000/2003 2308.9.10 & 2308.9.11 LC.B.D.-Uniform Building Code -1997 2320.11.9 & 2320.11.10 International Plumbing Code - 2000/2003 305.8 HSS2-3-SDS3 (16 gauge) Heavy stud shoe for triple 2x stud. Uses 12 SDS%x2 screws (included). International Residential Co dee- 2000/2003 R602.6 and P2603.2.1 International Building Code"- 2000/2003 2308.9.10 & 2308.9.11 International Plumbing Code - 2000/2003 305.8 LC.B.D.-Uniform Building Code -1997 2320.11.9 & 2320.11.10 SS1.5 (16 gauge) stud shoes reinforce and protect plumbing in 2x. International Residential Codee- 2000/2003 R602.6 and P2603.2.1 International Building Codee - 2000/2003 2308.9.10 & 2308.9.11 International Plumbing Code - 2000/2003 305.8 LC.B.D.-Uniform Building Code -1997 2320.11.9 & 2320.11.10 12-10dx1% 12-10dx1% 12-10d 14-10d ci_:HS.S2-SDSt;5,'\}2x;::.j2-S[)S~)(I% :,'HSS2~2~sbst:i2i2)(,:'r1_Z~S[)SY4)(3 .:H$S2:3?SDS3:i,~3~2X~I~J2:'.SDSY4xt' :.HSS,ifcSOS31':;{,; ~.2H~t' ;.,7:tZrSpS1J.*3:i 1. Roof loads are 125% of floor loads unless limited by other criteria. Roor loads may be adjusted for other load durations according to the code, provided they do not exceed roof loads. 2. NAilS: 10d = 0.148" dia. x 3"'ong, 10dx1'!2 = 0.148" dia. x Wi' long. See page 16-17 for other nail sizes and intormation. HSS US Patent 6,176,057 k ~ I 2'/16' ~ 20/. 1- HSS2-3 STEP 2 Bend HSS (HSS2-3 shown) flanges one time only. Screw into position. :1 t r j , I 1 . i I j j <. j .( 'I I I I 1 1 ; I I .~ i STEP 1 Install HSS (HSS2-3 shown) over stud with flanges bent at a 900 angle. Typical SS1 Installation ~. - :,0<" ~ l:) ~ c:: ClI ... ii) ~ /I) ... !;: .. The RPS meets IBC, IRC, UBC and City of Los Angeles code requirements for HVAC and pipes in walls. FINISH: Galvanized, some products available in ZMAX. See Corrosion-Resistance, page 6-7. INSTAllATION: Use all specified fasteners. See General Notes. CODES: See page 12 for Code Listing Key Chart. RPS28 (16 gauge) to reinforce top plate, and RPS28Z (16 gauge ZMA)(TM) to reinforce sill plate. International Residential Codee. 2000/2003 R602.6.1 International Building Codee- 2000/2003 2308.9.8 LC.B.D.- Uniform Building Code -19972320.11.7 . Avai/;IJle with additional corrosion protection. Check with factory. I, .1 c.5 ~ o "-' w ;::: '" z o a: I- en z o en "- :;;: en on g '" -= 0> ,., = o "-' @ '" a a '" o 0> o ~ "-' SS ~-i: RPS Strap Ties I .. . It I S'h'-RPS18 &22 I ~ 12'- RPS28 =-l RPS18 RPS22 -RPS28 (INCOMPLETE NAIL PATTERN SHOWN) RPS ~ 1. loads include a 33% or 60% load duration increase on the fasteners for earthquake or wind loading, but DO NOT include a 33% stress increase on the steel capacity. Refer to page 13 for further explanation. 2. To meet the prescriptive IRe requirement 16d box nails (0.135' dia x 3W) may be used at 0.75 of the table load. 3. NAilS: 16d = 0.162" dia. x 3~'-2" lo~g. See page 16-17 for other nail sizes and information. Typical RPS Installation (Only one strap may be necessary to meet IRe requirements) .......... Fasteners ;;~ir:fa~~!tDWS~f.~1 Allowable Tension . Model Dimensions Notch (Total) .. loads (SPFIHF) Code Ga No. Width KCi33)};' 'i(160j'.> -(133) I (160) Rilf. . W l Nails RPS18 1% 180/16 ~5W 12-16d 1150 1380 990 1190 RPS22 1% 220/1. <: 5'12' 12-16d '~1150", "'. 1380H. 990 1190 33,96, 16 1% 220/1. 16-16d :;)535',; 1805;';,' 1325 1585 122,128 RPS28 1'12 280/1. ~ 12' 12-16d 1150 1380 990 1190 1% 280/1. 16-16d 1535 1805 1325 1585 -"'.-- ._~ POLL OF SURROUNDING CITIES (12/15/05) As requested by the Board, at their 11-10-05 meeting, staff sent an e-mail polling several of the surrounding building departments and our findings are shown below. Question on commercial and residential construction: Does your city have a local building code amendment that requires a minimum 6" stud wall be used where drain, waste & vent (D WV - horizontal and/or vertical) plumbing is installed? CITIES RESPONSE Baytown No local amendment Deer Park No local amendment Houston No local amendment League City No local amendment Nassau Bay No local amendment Pasadena No local amendment Webster No local amendment -'~ REQUEST FOR CITY COUNCIL AGENDA ITEM Department: Appropriation Agenda Date Requested: A ri Requested By: Source of Funds: Account Number: Report: Resolution: Ordinance: Amount Budgeted: Exhibits: Agreement for Services Amount Requested: Exhibits: Sections I, II and IV of Tri-party A2reement Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The Agreement for Services by and between the City of La Porte, Texas, Tax Increment Reinvestment Zone Number One, City of La Porte, Texas and the La Porte Redevelopment Authority is going to expire on May 9, 2006. This Agreement is to secure services of the City to assist the Authority in its duties described in its Agreement with the City and Zone. The Agreement provides for two I-year renewals. After Council approval, this I-year renewal will be presented to the TIRZI Authority Board for approval. Action Required bv Council: Approve renewal of Service Agreement for a term of one (I) year per Section 1. Approved for City Council A2enda Ct Debra B. Feazelle, City Manager A/J{tu~ ~~f2~()~ Date AGREEMENT FOR SERVICES BY AND BETWEEN THE CITY OF LA PORTE, TEXAS, TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS AND THE LA PORTE REDEVELOPMENT AUTHORITY THIS AGREEMENT (this "Agreement"), effective as of May 9.2005 is made by and between the CITY OF LA PORTE, TEXAS, a municipal corporation and a home-rule city in the State of Texas (the "CITY"); REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, a reinvestment zone created by the City pursuant to Chapter 311, Texas Tax Code (the "ZONE"); and the LA PORTE REDEVELOPMENT AUTHORITY, a nonprofit local government corporation organized and existing under the laws of the State of Texas (the "AUTHORITY"). RECITALS WHEREAS, the CITY, ZONE, and AUTHORITY have previously entered into an Agreement; and WHEREAS, the CITY and the ZONE desire to secure services of the CITY to assist the AUTHORITY in its duties described in its Agreement with the CITY and ZONE; NOW, THEREFORE, for and in consideration of the mutual undertakings herein contained, the AUTHORITY and CITY agree as follows: I. CITY agrees to assist the AUTHORITY in its scope of services as defined by Section II and Section VI ofthe "AGREEMENT BY AND BETWEEN THE CITY OF LA PORTE, TEXAS, REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, AND THE LA PORTE REDEVELOPMENT AUTHORITY" for a term of one (1) year commencing with an option to renew this agreement for two additional one (1) year terms, subject to the agreement of both parties. This agreement is subject to termination at any time without cause by either party giving ninety (90)-day written notice to the other. II. CITY shall receive compensation for services referred to in Section I above in an amount equal to the direct salary costs plus 5% of City personnel performing services anticipated by this agreement. Payment for these services shall be made annually, upon termination, or otherwise agreed to in writing by both parties. Reimbursable expenses such as consultant's fees, supplies and materials shall be billed at cost plus 5% and paid within thirty (30) days of invoice or as determined by separate agreement with consultant or provider. III. CITY will procure, to AUTHORITY'S account, supplies, materials, equipment, and services, utilizing funds allocated in AUTHORITY'S approved budget (Tax Increment Reinvestment Zone Fund), for the services provided by the CITY on behalf of AUTHORITY. CITY shall conform to all applicable purchasing laws of the State of Texas in the procurement of all supplies and materials necessary for the services provided. IV. CITY is retained by AUTHORITY only for the purpose and to the extent set forth in this Agreement, and City's relation to AUTHORITY, during the period of this Agreement, is that of an independent entity, and CITY shall be free to dispose of such portion of his entire time not required to satisfy the terms of this Agreement in any manner he deems advisable. CITY shall not be considered an employee of AUTHORITY. V. CITY shall be required to operate within the current guidelines of its governing body and shall notify AUTHORITY of any possible conflicts with such guidelines, as soon as practicable after the occurrence of said possible conflicts. VI. /" CITY hereby assumes entire responsibility and liability for any and all damage or injury of any kind or nature whatever to all persons, whether employees of CITY or otherwise, and to all property caused by, resulting from, arising out of, or occurring in connection with the services provided for in this Agreement and if any person shall make a claim for any damage or injury as herinabove described, whether such claim may be based upon the AUTHORITY'S alleged active or passive negligence or participation in the wrong or upon any alleged breach of any statutory duty or obligation on the part of the AUTHORITY, the CITY agrees to indemnify and save harmless the AUTHORITY, its agents, servants, and employees from and against any and all loss, expense, damage, or injury that the AUTHORITY may sustain as result of any such claims and the CITY agrees to assume, on behalf of the AUTHORITY, the defense of any action at law or in equity, which may be brought against the AUTHORITY upon such claim and to pay on behalf of the AUTHORITY, upon its demand, the amount of any judgment that may be entered against the AUTHORITY in any such action. VII. Before commencing the services, the CITY shall procure and maintain liability insurance, at its own expense, and procure and maintain workers' compensation and employee liability insurance in accordance with the laws ofthe State of Texas. The CITY agrees that nothing contained in this paragraph shall limit or release the CITY from its obligations otherwise provided for in this Agreement, including assumption of liabilities and indemnifications to the AUTHORITY. If the CITY fails to procure and maintain at least the above insurance, the AUTHORITY shall have the right to procure and maintain the said insurance for and in the name of the CITY, and the CITY shall pay the cost thereof and shall furnish all necessary information to make effective and maintain such insurance. VIII. The CITY for the compensation provided for herein, hereby agrees to pay and shall hold the AUTHORITY harmless against the payment of all contributions, taxes, or premiums which may be payable under Federal, State, or Local laws arising out of the performance of the work. IX. If either the CITY or AUTHORITY believes it has a claim of any nature whatsoever against the other party, it shall give the other written notice of the amount, whenever possible, and nature of such claim within forty-five (45) days (or such other time limits as may be expressly set forth in the Agreement) of the occurrence of the event upon which such claim is based. In default of such notice the claim is waived. x. All matters relating to the validity, performance, interpretation, or construction of this Agreement or the breach thereof shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands and seals the day and year first above written. CITY OIf\A .PORTE ~ By: ~L.\~ Alton E. Porter, Mayor gn Y$~e#.dI(/ Martha A. Gillett, CIty Secretary :: PORTE RE~P?4t;:r\RITY \.tit..-e.. President, Board of Directors '?C.~ oard of Directors REINVESTMENT ZONE NUMBER ONE, CITY OF LA P~XAS~, By: ~ \Ji ~ Chairperson, Board of Directors H:\My Documents\Documents\TlRZ\Redevlopment Authority Agreement.doc II. SCOPE OF SERVICES BY AUTHORITY To the extent of available funds and subj ect to the limitations of this Agreement, the services ( that the Authority may furnish consi~t of,. among other things, the following: A. Mana!?ement and Administrative Services and Consultants. The Authority will provide management and administrative services for the Zone and tp.e PID. The servi~es ~thout limitation may include the following: . . l.Provide the staff and administrative services that are necessary to manage the Zone and the PID and provide or supervise the services and the Proj ects; 2. Provide management, financial and program monitoring systems for the adrillnistration of the Zone. and the Pill; 3. Provide any required reports to the City and the Zone. concerning the administration of the Zone; . . 4. Subject to the t.eims of this Agreement, recruit, hire, pay and supervise the consultants and any work force that the Authority will utilize to furnish services required for the development or redevelopment of the Z9~e; ( 5. Provide staff to participate in meetings concerning the administration of the Zone and the Pill in all its capacities, including the services to the Zone Board when managing the Zone; 6. Provide liaison and coordination between the Zone, the City, the County, the School District, other Taxing Units, property owners, and other persons and groups interested in the redevelopment activities of the Zone and the Pill; 7. Supe.rvise and monitor theperforrnance of consultants and subcontractors who are employed by the Authority; . !: .. ! I . I . ( ( ..... 8., Assist in briefmg Developers, property owners and other persons concerning proposed activities and developments that would complement public and private development activities in the Zone; , 9. Function as the information/complaint center for all matters relating to the administration of the Zone and advise the Zone Board and the City in a timely manner of any problems 'concerning ,the Zone and the Pill; and 10. 'Provide engineering, planning, legal, fInancial, real estate, and other services through consultants engaged by the Authority as may be requested by the Zone Board or the City. B. Services With Respect to the Plans and Enlargement of the Zone. . ~ 1. Act as consultant to the Zone in the implementation and amendment of the Plans in accordance with applicable law. 2. The Authority will review areas for addition to the Zone _~ requested by the Zone Board and will provide information with respect to any proposed enlargement that may be required by the Zone Board including, if requested, the information required for a preliminary Project ( Plan and a preliminary Financing Plan with respect to the enlargement of the Zone. " C. Ta'( and Assessment Rolls. 1. , Assist the Zone Board and the City with respect to the preparation of special tax rolls relating to the Zone. The Authority will analyze property uses in the Zone, compare them to the records of the Appraisal District, and attempt to reconcile the tax rolls of the Appraisal District with the actual land uses. 2. Assist the City in securing a tax roll for the Zone each year, and assist the Zone Board, the City, and the Appraisal District in having the Zone tax rolls correctly reflect the total appraised value otreal property in the Zone for that year. and showing separately the Tax Increment Base and the Captured Appraised Value. The Authority. will assist the Zone Board and the City in advising all Taxing Units participating in the Zone with respect to the Captured Appraised Value and the amount of Tax Increment of each Taxing Unit which is to be paid into the Tax Increment Fund as required by the TIRZ A~t. . 3. Assist the City in preparing the Pill Assessment rolls, noticing and conducting hearings, and collecting the Pill Assessments. ( , I ,; f ,; ; .~: . ~. Houstcn:367966.2 6 I t . ,;... ( - D. Construction ofProiects. The Authority may construct infrastructure, buy equipment and supplies, and deal in re.al estate as necessary to implement the Plans and as permitted by the TIRZ Act and the PID Act: 1. To the extent funds are available, the Authority may design and construct Projects identified in the Plans that meet the qualifications of the TIRZ Act and the PID Act as applicable; and 2. To the extent funds are available, the Authority may buy, sell, lease and otherwise deal in real estate within the Zone. E. Subcontractors. The Authority may provide the services required by, this Agreement through staff, subcontractors, and/or consultants subject to the conditions of this Agreement. ( , ( VI. ACCOUNTING AI~D AUDITS A. Accounts. records, and accounting reports, The Authority will maintain books of , records and accounts in which full, true, and proper entries will be made on all dealings, transactions, , business, and matters that in any way affect or pertain to the, operation ofthe Zone and th~ PID, and the allocation and application offunds provided hereunder. All such records shall be maintained in 'accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. The Authority shall provide free access to the books and records at all times to the City and the Zone or their representatives and shall permit them to examine and audit the same and make copies thereof. The Authority shall further allow the City and the Zone and their representatives to make inspections of all work data, documents, proceedings, and activities related to this Agreement. Such right of access and audit shall. continue for a period of three years from the date of final payment under this Agreement. The Authority will operate on the basis of the same fiscal year as the- City. ( B. Audit. At the end of each fiscal year (beginning with the fiscal year or fraction thereof during which this Agreement is executed), the Authority will have an audit prepared by an independent Certified Public Accountant for that fiscal year that shall be submitted to the Authority, the Zone and the City within 120 days after the end of the fiscal year. The Authority' shall furnish copies of the audit to the City Manager 'and the Zone Board. C. Authority Depository. Any moneys received from investing and reinvesting the moneys paid by the City and the Zone to the Authority shall remain ill the Pill Revenue Fund and the TIRZ Revenue Fund, as applicable, until used by the Authority for one of the purpose's permitted by this Agreement, and may be commingled with other moneys of the Authority; provided that these funds shall be accounted for separately. Such funds shall be invested and reinvested by the Authority only in investments that would be eligible for investment by the City pursuant to the provisions of the Public Funds Investment Act (Chapter 2256, Texas Government Code). Such funds will be secured by the depository bank in the same manner as City funds are required to be secured at the City depositoq and in accordance with applicable law and City procedures. ( /' A CITY OF LA PORTE INTEROFFICE MEMORANDUM To: Debra B. Feazelle, City Manager From: Susan Kelley, Purchasing Manager Subject: Purchase of Electricity Date: April 19, 2006 On January 1, 2002, TXU became the City of La Porte's electrical provider through an agreement. with H-GAC Energy Purchasing Corporation. The contract term was for a two (2) year period, due to expire on December 31, 2003. In October 2003, staff reported a 22% savings for all facilities over the two (2) year period with TXU and Council meeting and Council approved an additional three (3) years renewal option, which is due to expire December 2006. Purchasing staff has reviewed three aggregates for purchasing electricity and believe Houston-Galveston Area Council to be the best resource. H-GAC Energy Purchasing Corporation recently submitted an RFP to energy providers and awarded the contract to several providers based on reputation, financial backing, business strategy, etc. They also retained an energy consultant, CGP Solutions, to work with public entities to obtain prices from the energy providers. When an entity requests pricing, CGP Solutions monitors the market daily and obtains pricing plans and term options from the various providers. Once pricing is obtained, CGP will present the information to City staff, who will analyze the options and choose the plan and contract term that best benefits the City of La Porte. Unfortunately, this process must be completed the same day. Electrical expenditures during the 2005 fiscal year exceeded $1.2 million. CGP Solutions has provided current market pricing of approximately $.085 per kWh, which almost double the amount of our contract pricing, $0.04397, obtained in 2003. Per your recommendation, Purchasing will workshop this item at the April 24,2006 Council meeting to receive Council's directive for the purchase of electricity. B r~(3 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 24. 2006 Appropriation Requested By: Debra Feazelle, City Mana2er Source of Funds: Department: Administration Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Ordinance 2006- Amount Requested: Exhibits: Aereement Budgeted Item: N/A Exhibits: SUMMARY & RECOMMENDATION The Public Utility Commission of Texas issued an order requiring CenterPoint Houston to file a transmission and distribution rate filing package on or before April 15,2006. CenterPoint has approached La Porte to enter into an agreement with CenterPoint that would resolve all issues related to the docket, to continue existing base rates, and to establish certain procedures to be applied to CentePoint for the calendar years 2006-2009 as listed in the attached Term Sheet for Settlement of Center Point Houston Electric Rate Case. Staff recommends Council approve of an agreement with CenterPoint Energy Houston Electric. Action Required by Council: Consider approval of an ordinance approving an agreement between the City and CenterPoint Energy Houston Electric. 4- )q/tJ~ Date W~f Yl~ fhvp~ ORDINANCE NO. 2006- AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND CENTERPOINT ENERGY HOUSTON ELECTRIC; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 24TH day of April, 2006. CITY OF LA PORTE By: Alton E. Porter, Mayor ATTEST: Martha A. Gillett City Secretary APPROVED: Knox W. Askins City Attorney TERM SHEET FOR SETTLEMENT OF CENTERPOINT ENERGY HOUSTON ELECTRIC (CERE) RATE CASE I) Provide a system wide annual benefit of $70 million ($50 million plus $20 million for renegotiated City of Houston franchise) for each of the years 2006-2009* - Y '1 r,5 Dollars in Millions System Wide a. Conservation/Energy efficiency programs** b. Public use to promote health, safety, welfare of citizens and rate credits c. Fran.chise payments to non-Houston cities d. Renbgotiated franchise payment to City of Houston e. Storm reserve $15 $26 $ 4 $20 $ 5 Totals in millions $70 2) Current CEHE base rates will not change. 3) The Company will continue to be able to file for the following: a. Updates to Transmission Cost Recovery Factors b. Updates to Transmission Cost Of Service c. Surcharges for advance metering as approved by the PUC (parties may intervene) d. Tariffs/riders to comply with the retail market's new terms and conditions 4) Beginning with the reporting year 2006, CEHE agrees to file an Annual Settlement Report providing a calculation based on the PUC's current annual Earnings Monitoring Report. The expenditures associated with paragraph 1 above shall be included in the report and considered reasonable and necessary expenses for purposes of calculating CEHE's earned returns on equity (ROE) and overall cost of capital. There will be a ROE range of 10% to 11 %. In the event that the calculated ROE is above the 11 %, an additional amount equal to one-half of those excess revenues above that point will be provided as an additional benefit prorated between conservation/energy efficiency programs and public use in the calendar year following the year monitored by the Annual Settlement Report. In the event that the calculated ROE falls below the 10%, then one-half of the revenue shortfall will reduce the annual benefit prorated between conservation/energy efficiency programs and public use. In the event that the ROE exceeds 12%, the settlement agreement may be reopened. See Appendix A Confidential for settlement purposes only 1 5) CERE agrees to file a system wide rate case in June 2010, based on a 2009 test year, unless the Cities and the Company mutually agree that such a filing is unnecessary. 6) Rates can be adjusted for force majeure (including but not limited to regulatory/legislative changes, tax law changes, accounting changes or terrorism). * ** Assumes agreement by all coalition cities. The annual benefit associated with conservation/energy efficiency programs IS III addition to the $13 million currently in base rates. Confidential for settlement purposes only 2 Appendix A CenterPoint Energy Houston Electric (CEHE) If ROE> 12% - Option to Re-Open If ROE> 11% Excess Revenues Shared SO/50 and Provided as an Additional Annual Benefit* 11.0% ROE If ROE is within this Range, ............ i 10.5% Midpoint ROE No Change to Annual Benefit ! 10.0% ROE If ROE < 10% Annual Benefit to be Reduced by One-half of Revenue Shortfall* ~~re'h'1:V'3r'b~rJ:h'l~rltib~S<<flg~ignservation/energy Confidential for settlement purposes only 3 ALLOCATION OF BENEFITS Recommendation for the proposed allocation of the annual benefit of $50 million is as follows: 1. Franchise agreements for cities other than Houston will be extended for 30 years or until 2046, which ever is sooner, contingent on an approved settlement agreement. The franchise payments for these cities will be based on the average of the two highest years from 1998-2005, but in no case will it be less than the highest annual payment received since deregulation. This is consistent with the mechanism used in the City of Houston's new franchise agreement. Re-negotiated franchises are not reflected in current base rates and will be taken into account under paragraph 4 of the term sheet. The City of Houston annual franchise payment increased by approximately $20 million. 2. Storm reserve in the amount of $5 million is an estimated annual amount to build the reserve to handle costs associated with a catastrophic event and will be applied on a system-wide basis only. 3. Additional Conservation/Energy Efficiency measures above those included in current base rates are projected to be approximately $15 million a year. The projected funding will be allocated between the City of Houston (40%) and all remaining areas (60%). The 40% allocation approximates the revenues received from meters located within the City of Houston. 4. Any remaining dollars that have not been used to achieve the $50 million annual benefit will be allocated to Public use to promote health, safety & welfare of citizens and provide rate credits. These amounts will be allocated based on a ratio of kwh delivered in each city to the kwh delivered on the total system. Based on above, the following allocations were determined: Total system wide annual benefit $50 million 1) Houston total * Conservation/Energy Efficiency Public Use $16 million $ 6 million $10 million 2) Non Houston total Franchise Conservation/Energy Efficiency Public Use $29 million $ 4 million $ 9 million $16 million 3) Storm Reserve $ 5 million * Increases to $36 million when renegotiated Franchise payment of $20 million is added. Confidential for settlement purposes only 4 CenterPoint Energy Houston Electric - Energy Conservation Expansion Plan Projected Current Additional Pro2ram Pro2ram Type Soendin2 Spendin2 Community Weatherization Low Income - Existing $0.4 $1.6 Hard-to-Reach Std. Offer Low Income - Existing 1.9 1.0 Multi-Family Water/Space Htg Low Income - Existing 0.5 0.5 Energy Star Affordable Homes Low Income - Existing 0.1 0.5 Appliance Recycling/Replacement Low Income/Residential- New 1.0 Community Agency Outreach Low Income - New 1.0 Multi-Family Energy Efficiency Multi-Family Res. - New 1.0 Energy Star New Horne Residential - Existing 3.0 1.0 Trees for Efficiency Res.fLow Income - Existing Pilot 0.1 0.2 Energy OutreachlEducation Residential- New 1.0 Residential / Sm Commercial Std. Offer Res./Sm. Commercial - Existing 0.8 1.0 Load Management Res./Commercial- New 0.1 0.5 Green Building / LEED Program Commercial - New 0.5 CommerciallIndustrial Std. Offer Commercial/Industrial Existing 4.6 2.0 Building Commissioning Commercial/Industrial Existing 1.6 0.5 Smart Schools Institutional - Existing Pilot 0.3 0.7 Municipal Efficiency Program Municipal- New 1.0 Total $13.4 $15.0 (1) All spending values in million $ (2) Projected additional spending is incremental over current spending. /,q ~l Confidential for settlement purposes only 5 CriteriaIRationale for Selectim! Prol!rams . Emphasize Residential and low income but not exclusively . Scale-up existing programs based on current demand for them . Select programs with fast start-up . Add new programs which we have implemented in past or which have been implemented by other utilities . Select programs that are sustainable and can transform energy efficiency markets . Leverage and expand the Pleasantville weatherization initiative . Integrate the TDHCA weatherization program into low-income weatherization program . Utilize local community action and development agencies as an energy conservation delivery channel . Initiate a strong bilingual consumer outreach and education program that gives consumers useable tools and information to control and manage energy bills . Programs are implemented through the competitive market by energy efficiency service providers to maximum extent Prol!ram Descriptions Community Weatherization - Expansion of the Pleasantville weatherization project to other communities and multi-family dwellings. Integrates TDHCA Weatherization Program. Hard-to-Reach Standard Offer - Incentives for energy efficiency measures targeting customers below 200% of federal poverty guidelines. Multi-Family Water and Space Heating - Incentives to developers for installation of gas water and space heating in apartments, primarily low-income. Energy Star Affordable Homes - Promotion of Energy Star efficiency standards in affordable new home market. Appliance RecyclinglReplacement - Removal of old refrigerator and replacement with new energy efficient model for low income customers. Also includes window AlC upgrades plus insulation addition. Community Agency Outreach - Incentive program for efficiency upgrades to new and existing homes through area community development and action agencies such as Sheltering Arms, Urban League, Habitat for Humanity, Rebuild Houston Together, etc. Multi-Family Energy Efficiency - Incentives to builders/developers who build apartments to Energy Star standards. Energy Star New Home - Promotion of energy efficient new home construction through incentives, training, Energy Star certification. Contidential for settlement purposes only 6 Trees for Efficiency - Promotion of tree planting to promote shading and reduced AlC energy use. Includes low income component involving City of HoustonJHouston HOPE organization. Energy Outreach/Education - Area-wide dissemination of educational materials and kits to give customers tools to reduce energy use. Residential/Small Commercial Standard Offer - Incentives for a variety of residential and small commercial efficiency measures. Load Management - Payments to customers for shifting electric load from peak to off-peak periods. The City of Houston plus other cities have participated in this type of program in the past. Green Building/LEED Program - Incentives to commercial developers/building owners for construction of green/LEED (Leadership in Energy and Environmental Design) qualified buildings. CommerciaIlIndustrial Standard Offer - Incentive program for installation of efficiency measures in large commercial and industrial facilities. Building Commissioning - Energy audit and building tune-up for commercial and industrial facilities. Smart Schools - District-wide energy management program for local school districts. Municipal Efficiency Program - Incentives for energy efficiency projects at municipal facilities including office buildings, water/wastewater facilities, traffic light upgrades to LED's. Confidential for settlement purposes only 7 Town LAP City Asterisk denotes where franchise is not paid. La Porte 'v) .! ~ CIS 308,509,526 ICBS 96,056,542 J ~ ~ SLB 1,107,883 Total with SLB 405,673,951 %of Total 0.5472% $ Public Use Dollars Allocated with SLB 142,266.61 Rounded upward to nearest hundred $ 142,300.00 lTERPOINT ENERGY HOUSTON ELECI'RIC - FRANCHISE BY CITY CONFJDEN11AL 2003 1.171.997.24 1,171,997.24 2004 ~ - 1.202.196.69 1,202,310.17 $ 1,202,196.69 2 Highest Years for each city are: 2001 2004 Franchise Amounts for 2 Highest Years During Period 1998 - 2005 1,329,506.60 1,202,310.17 Average 1,265,908.39 $ 1,265,908.39 Highest Base Amount which Amount Durin& Is higher of either Period Since A vera&e or Hipest Derep1ation Deregnlation (2002 -2005) Payment 1,202,310.17 1,265,908.39 1,202,310.17 1,265,908.39 New Franclalse Payment 1,265,908.39 $ 1,265,908.39 Difference Between New Franclalse Payment aod 2005 Payment 63,711.70 63,711.70 Dereaulation of Electric Utility Industry - January, 2002 Prior to deregulation - integrated utility, same company generated electricity, delivered electricity and billed customers. RELIANT ENERGY . . . Generation Delivery Billing & & Metering Retail Subsequent to deregulation - utility (and Reliant) split into three separate businesses. '5:B 1 Billina & Retail Retailers Retailers include Reliant Energy, TXU, GEXA Energy, First Choice, Green Mountain, First Constellation, etc. Customers receive one bill from their retail provider. CenterPoint Energy bills the retail providers for "delivering" the electricity. Our portion of the bill received by the customer is about 3.5 centsjkwhr. The average residential rate is approximately 15 centsjkwhr. Franchise Payments . Prior to deregulation, CenterPoint Energy paid 4% of gross receipts as a franchise fee. . With deregulation, the utility is unable to pay on gross receipts since the "wire company" does not bill customers. . Senate Bill 7, based upon input from TML, established franchise payments based upon the amount of electricity delivered and the franchise amounts paid in 1998. . .$ Paid in Franchise Fees in 1998 = Franchise Factor Kwhr Delivered in 1998 . During subsequent years, franchise fees were paid using the franchise factor Franchise Factor x Kwhr Delivered = Franchise Payment . Proposal - franchise payments will be set as the greater amount of a) the averae of the two (2) highest years from 1998 to 2005 or b) the highest deregulation payment. . Provision for annual adjustment. . Annual Adjustment Annual Adjustment Factor = Year "XU Kwhr 2005 Kwhr c - JS-L REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 24. 2006 Appropriation Requested By: Debra Brooks Feazelle, City Mana~er Source of Funds: Department: Administration Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Ordinance 2005- Amount Requested: Exhibits: Exhibits: A2reement Budgeted Item: Exhibits: SUMMARY & RECOMMENDATION The City entered into a franchise agreement with Houston Lighting & Power (HL&P) in 1958 for a term expiring July 1, 2008. CenterPoint Energy has since become the successor of HL&P. CenterPoint Energy owns and operates an electric delivery business within La Porte's City limits and is willing to continue to provide electric service in the city. City Council was presented with an agreement with CenterPoint on the terms and conditions which to amend the prior franchise agreement. Staff recommends Council extend the term of the franchise agreement with CenterPoint Energy an additional 30 years. Action Required bv Council: Consider approval of an ordinance approving an agreement between the City and CenterPoint Energy Houston Electric. 4 Ie; -J& Date 1 I} ~Juf~ ^ ~~J~ aF~ CITY OF LAPORTE, TEXAS, ORDINANCE NO AN ORDINANCE GRANTING TO CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC THE RIGHT, PRIVILEGE AND FRANCHISE TO USE THE PUBLIC RIGHTS-OF- WAY AND TO USE, LICENSE, OR EXPLOIT THE COMPANY'S FACILITIES WITHIN THE PUBLIC RIGHTS-OF..WAY TO CONDUCT AN ELECTRIC DELIVERY BUSINESS IN THE CITY AND FOR SUCH OTHER BUSINESS PURPOSES AS THE COMPANY MAY DESIRE FROM TIME TO TIME, SPECIFICALLY INCLUDING, BUT NOT LIMITED TO, THE GRANTING OF ACCESS TO THOSE FACILITIES FOR THE DELIVERY OF BROADBAND OVER POWER LINES OR SIMILAR SERVICE WITHIN THE CITY OF LAPORTE, TEXAS. ** * *** WHEREAS, City of LaPorte, Texas Ordinance No. (the "Prior Franchise") granted an electrical lighting and power franchise to Houston Lighting & Power Company, for a term expiring July 1, 2008; and WHEREAS, Company is the successor to Reliant Energy, Incorporated ("REI"), which was the successor to Houston Lighting & Power Company, by virtue of a corporate restructuring of REI that occurred in August 2002, in which REI was merged with and into an indirect wholly owned subsidiary of CenterPoint Energy, Inc., which was converted into a limited liability company and was renamed CenterPoint Energy Houston Electric, LLC; and WHEREAS, Company owns and operates an electric delivery business within the corporate limits of the City and Company is willing to continue to provide electric delivery services within the corporate limits of the City; and WHEREAS, pursuant to that certain letter agreement dated , 2006, between Company and City, Company and the City have reached agreement on the terms and conditions by which they will amend the Prior Franchise and extend the term of the Prior Franchise for an additional thirty (30) years; and WHEREAS, it is hereby found and determined by the City Council of the City of LaPorte that it is in the best interests of the City that the Prior Franchise granting to the Company the right to use the public rights-of-way to conduct an electric delivery business in the city and for such other business purposes as the company may desire from time to time be amended and extended for an additional thirty (30) year term, subject to the terms and conditions described in this ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE [APPROPRIATE OFFICIAL OR GOVERNING BODY] OF THE CITY OF LAPORTE, TEXAS: Section 1. That the facts contained in the preamble to the Ordinance are determined to be true and correct and are hereby adopted. Section 2. Definitions. HOD03:10557S2.1 Annual Adjustment Factor has the meaning set forth in Section 11 below. Annual Franchise Fee has the meaning set forth in Section 11 below. Broadband over Power Lines (BPL) or '~ccess BPL" has the same meaning as that used by the Federal Communications Commission in Section 15.3 of its Rules as reprinted below: Access Broadband over Power Line (Access BPL). A carrier current system installed and operated on an electric utility service as an unintentional radiator that sends radio frequency energy on frequencies between 1.705 MHz and 80 MHz over medium voltage lines or over low voltage lines to provide broadband communications and is located on the supply side of the utility service's points of interconnection with customer premises. Access BPL does not include power line carrier systems as defined in Section 15.3(t) of this part or In-House BPL as defined in Section 15.3(gg) of this part. City means the City of LaPorte, Texas, a municipal corporation of the State of Texas. City Council means the governing body of the City, or its designee. Company means CenterPoint Energy Houston Electric, LLC, a Texas limited liability company. Effective Date means July 1, 2006. First Rate Case has the meaning set forth in Section 14 below. Force Majeure means forces or conditions not reasonably within the control of a party, including a strike; war or act of war (whether an actual declaration of war is made or not); insurrection; riot; act of public enemy; accident; fire; flood or other act of God; sabotage; shortages in materials, supplies and equipment; governmental regulations, limitations and restrictions as to the use and availability of materials, supplies and equipment and as to the use of services; unforeseen and unusual demands for service; or other events, where the affected party has exercised all due care in the prevention thereof and such causes or other events are without the fault or negligence of the affected party. Franchise means this Ordinance and the rights and privileges granted by this Ordinance. Franchise Year has the meaning set forth in Section 11, below. HQU03:1055752.7 Franchise Area means the area within the boundaries of the City as of the Effective Date and as same may change from time to time during the term of the Franchise. Initial Franchise Year shall have the meaning set forth in Section 11, below. Other Services means any service, exclusive of the transmission and distribution of electricity, provided or allowed to be provided through the use or license of the System for a fee, including but not limited to BPL. Person means any individual, firm, partnership, association, corporation, company or organization of any kind. Prior Franchise has the meaning set forth in the first Whereas clause, above. Public Rights-of-Way means the areas in, under, upon, over, across, and along any and all of the present and future Streets or streams now or hereafter owned or controlled by City. Public Works Improvement Projects has the meaning set forth in Section 5, below. PUC means the Public Utility Commission of Texas or its successor agency with equivalent jurisdiction. Retail Customer means any Person taking delivery of electricity from Company, at a point of delivery within the Franchise Area. Street means the surface and the space above and below any public street, road, highway, alley, bridge, sidewalk, or other public place or way. System means the Company's facilities erected, constructed, maintained, operated, used, extended, removed, replaced, and repaired, as necessary, by Company pursuant to this Franchise, including without limitation, all poles, pole lines, towers, transmission lines, wires, guys, conduits, cables, and other desirable instrumentalities and appurtenances (including telegraph and telephone poles and wires for use of Company), necessary and proper for the purpose of transmitting and distributing electricity to the City and the inhabitants of said City or other Persons, for any purpose for which electricity may be used. - Section 3. Subject to the terms, conditions and provisions of this Franchise, City hereby grants to Company the right, privilege and franchise to use City's Public Rights- of-Way to construct, maintain, operate and use Company's System to conduct within the City an electric delivery business and the right to use, license, or exploit the System within the Public Rights-of-Way for Other Services. This Franchise does not restrict City's right to impose reasonable fees upon third parties for the use of the Public Rights- of-Way to provide Other Services, so long as such fees are assessed on a non- HOU03:10SS7S2.7 discriminatory basis with those charged to other companies providing services competitive with the Other Services. Section 4. Upon the filing with City by Company of the acceptance required hereunder, the Prior Franchise shall be amended by replacing the language thereof, in its entirety, with the language of this Franchise; and the term thereof shall be extended, and it shall remain in full force and effect for an additional term and period of thirty (30) years from and after July 1, 2008. Section 5. All poles erected by Company pursuant to the authority herein granted shall be of sound material and reasonably straight, and shall be so set that they shall not interfere with the flow of water in any gutter or drain, and so that the same shall interfere as little as practicable with the ordinary travel, on the Streets or other Public Rights-of-Way. Within the Streets or other Public Rights-of-Way of City, the location and route of all poles, stubs, guys, anchors, lines, conduits and cables placed and constructed and to be placed and constructed by Company in the construction and maintenance of Company's System in the City, shall be subject to the reasonable and proper regulation, control and direction of City, or of any City official to whom such duties have or may be duly delegated, which regulation and control shall include, but not by way of limitation, the right to require in writing, to the extent provided in Section 10, the relocation of Company's System at Company's cost within the Streets or other Public Rights-of-Way whenever such shall be reasonably necessary to accommodate improvement projects within such Streets or Public Rights-of-Way by the city department with primary responsibility for public works projects ("Public Works Improvement Projects"). Section 6. In consideration for the compensation set forth in Sections 11 and 15, City agrees that if City sells, conveys, or surrenders possession of any portion ot the Public Right-of-Way that is being used by Company pursuant to this Franchise, City, to the maximum extent of its right to do so, shall first grant Company an easement for such use; and the sale, conveyance, or surrender of possession of the Public Right-ot-Way shall be subject to the right and continued use of Company. Section 7. Following completion of work in Public Rights-ot-Way, Company shall repair the affected Public Rights-of-Way as soon as possible, but in all cases shall comply with all valid City ordinances governing time periods and standards relating to excavating in the Public Rights-of-Way. No Street or other Public Right-ot-Way shall be encumbered by construction, maintenance or removal work by Company for a longer period than shall be necessary to execute such work. Section 8. The service furnished hereunder to City and its inhabitants shall be first-class in all respects, considering all circumstances, and Company shall furnish the grade of service to Retail Customers as provided by its rate schedules and shall maintain its System in reasonable operating condition during the continuance of this Franchise. Company's tariffs shall govern the rates, access to service, terms and quality of electric delivery services provided by Company. An exception to this requirement is automatically in effect when due to Force Majeure. In any Force Majeure HOU03:10SS7S2.1 event, Company shall do all things reasonably within its power to restore normal service. Section 9. Company, on the written request of any person, shall remove or raise or lower its wires temporarily to permit construction work in the vicinity thereof or to permit the moving of vessels, houses or other bulky structures. The expense of such temporary removal, raising or lowering of wires shall be paid by the benefited party or parties, and Company may require such paYment in advance, being without obligation to remove, raise, or lower its wires until such payment has been made. Company shall be given adequate, and in no event less than forty-eight (48) hours, advance notice to arrange for such temporary wire changes. Section 10. Company shall construct, operate, and maintain its transmission and distribution facilities in substantial accordance with Company's own Service Standards and the National Electrical Safety Code ("NESC"). Company shall determine the specific location and the method of construction and types of materials used in building, maintaining, and operating Company's transmission and distribution facilities. City shall require its employees and contractors performing work for the benefit of City to comply with all applicable laws, statutes, codes and standards (including, without limitation, Section 752 of the Texas Health and Safety Code, as the same may be amended or replaced, and the NESC) when working near Company's System and to report as soon as practicable any damage done to Company's System. Company also agrees to require its employees and contractors performing work for the benefit of City to comply with all applicable laws, statutes, codes and standards (including, without limitation, Section 752 of the Texas Health and Safety Code, as the same may be amended or replaced, and the NESC) when working near City's facilities and to report as soon as practicable any damage done to City's facilities. Company shall relocate facilities within Public Rights-of-Way at Company's own expense, exclusive of street lighting and facilities installed for service directly to City, to accommodate Public Works Improvement Projects, including, but not limited to street widening, change of grade, water, sewer, or drainage upgrades, construction or reconstruction projects and minor relocation of traffic lanes. City shall bear the costs of all relocations of street lighting and facilities installed for service directly to City and of any relocation of other facilities requested by City for reasons other than Public Works Improvement Projects. Except in the event of an emergency, City shall give Company at least seventy-two (72) hours notice when City or City's contractor is requesting the bracing of Company's poles. Company shall pay for the bracing to accommodate Public Works Improvement Projects, including but not limited to street widening, change of grade, water, sewer, or drainage upgrades, construction or reconstruction projects and minor relocation of traffic lanes. Section 11. In consideration for the rights and privileges herein granted, Company agrees to pay to City, beginning on the Effective Date and continuing throughout the remaining term of the Prior Franchise and the additional thirty (30) year term of this Franchise provided for in Section 4, above, an annual franchise fee (referred to herein as "Annual Franchise Fee"), subject to an Annual Adjustment Factor as set forth below. Except as set forth in Section 15, payment of the Annual Franchise HQU03:1055752.7 Fee shall be the total compensation payable to City in consideration for the right, privilege and franchise herein conferred for Company's use of the Public Rights-of-Way to construct, operate, use and maintain its System for the provision of electric transmission and distribution service and its right to use, license, or exploit its System for Other Services. The Annual Franchise Fee shall be calculated as follows: 1. The "Annual Franchise Fee," for the twelve-month period beginning on the Effective Date (tile "Initial Franchise Year") , shall be $1,265,908.39. 2. The Annual Franchise Fee for each succeeding twelve-month period (each a "Franchise Year"), including the Franchise Year beginning July 1, 2007, shall be adjusted by multiplying $1,265,908.39 by the Annual Adjustment Factor. The "Annual Adjustment Factor" for any given year shall be a fraction, the numerator of which shall be the kWh delivered by Company within the Franchise Area (inclusive of street lighting) in the previous calendar year and the denominator of which shall be the kWh delivered by Company within the Franchise Area (inclusive of street lighting) in 2005, said amount being 405,673,951 kWh. (Example: The Annual Franchise Fee for the Franchise Year beginning July 1, 2010 = $1,265,908.39 x 2009 kWh/405,673,951. In no case, however, shall the Annual Franchise Fee be less than the Annual Franchise Fee established in (1), above, for the Initial Franchise Year. In calculating the amount to be paid each year, Company shall offset its Annual Franchise Fee payments with the amount of the Municipal Account Franchise Credits and Municipal Franchise Fee Credits provided in Company's tariffs and applicable to City in the prior calendar year. The Annual Franchise Fee shall be payable in equal monthly installments due the first day of each calendar month. Company shall calculate the new franchise fee to be payable for each Franchise Year beginning July 1st and shall provide the same along with the basis for such calculation to City for its review no later than April 1 st of each year. If Company does not receive an objection from City by May 31St, Company shall implement the adjusted Annual Franchise Fee payment on July 1st. If the additional thirty (30) year term of this Franchise provided for in Section 4, above, ends on any day other than the last day of the last Franchise Year, then the Annual Franchise Fee for the final Franchise Year shall first be calculated pursuant to this Section 11 and then pro rated accordingly. Section 12. The parties agree that the franchise payments due under this Franchise are reasonable and necessary and that the parties shall use their best efforts to enable Company to recover these payments through its electric rates. Section 13. Except as provided in Section 15, the Annual Franchise Fee payable hereunder shall be the total compensation payable by Company to City for Company's use of the Public Rights-of-Way for the conduct of its business under the HOU03:1055752.7 Franchise. City shall not charge any additional license, charge, fee, street or alley rental, or other character of charge or levy for the use or occupancy of the Public Rights-of-Way in City, or any pole tax or inspection fee tax. If City does charge Company any additional license, charge, fee, street or alley rental, or other character of charge or levy, then Company may deduct the amount charged from the next succeeding franchise payment or payments until fully reimbursed. The Franchise shall constitute a permit to perform all work on Company's System within the Public Rights- of-Way and to park vehicles in the Streets and other Public Rights-of-Way when necessary for the installation, removal, operation or maintenance of Company's System. Company and contractors performing work for Company shall not be required to obtain any permits in addition to the Franchise or to pay any fee in addition to the Annual Franchise Fee in order to perform work on Company's System or to park within the Streets and other Public Rights-of-Way. Company shall cooperate with City to avoid unnecessary disruption, and Company shall comply with all valid City ordinances governing time periods and standards relating to excavating in the Public Rights-of- Way. Section 14. In the first rate case to review Company's base rates following the Effective Date (the "First Rate Case"), City shall support Company's request to include in Company's base rates the entire then-effective Annual Franchise Fee. If, as a result of the First Rate Case, or any subsequent rate case, Company's entire then-effective Annual Franchise Fee is not included in Company's base rates, then Company shall be required to pay only so much in franchise fees as the amount of franchise fees used by the PUC to calculate Company's then-effective rates. Section 15. In addition to the considerations set forth in Section 11, Company shall furnish, free of charge, subject to the use of City, such pole and/or duct space as may be required from time to time for the installation of City-owned traffic, police and fire alarm system conductors; provided such conductor space does not exceed the available capacity on anyone existing pole or in one existing interior duct. Company shall allow for the expanded use of existing energized conductors by City for the purposes of providing traffic signal communication interconnectivity with prior written approval from Company. The specific location for these traffic, police and fire alarm conductors on Company poles or ducts shall be determined by Company and shall be allotted at the time specific applications for space are received from City. All City traffic, police and fire alarm circuits on Company poles and ducts shall be designed and installed, operated and maintained in compliance with the applicable provisions of the NESC and other laws, statutes, codes and ordinances applicable to private parties and so as to create no interference, corrosion, harm, damage or hazard with, to or from Company's System or Company's business. All plans for such city traffic, police and fire alarm circuits must be submitted for Company's written approval prior to installation. Any modifications to Company's System necessary to accommodate such installation shall be paid by City. If, after installation, City's equipment is found to interfere with Company's System or business, Company and City shall work together to address the problem and, if deemed practical by Company, preserve City's access. Where main underground duct lines are located between manholes, Company shall permit free of charge the installation in one interior duct by City of its traffic, police or fire alarm signal HOU03:10SS752.7 cables; provided space is available in an interior duct not suitable for power circuits without interference with Company's system neutral conductors. All cables installed by City in Company ducts shall be of the non-metallic sheath type to prevent corrosive or electrolytic action between City and Company owned cables. A request for duct assignment shall in each instance be submitted to Company and a sketch showing duct allocation shall be received from Company prior to the installation of City cables in Company-owned duct lines. All City-owned conductors and cables, whether on poles or in duct lines, shall be constructed, maintained and operated in such manner as to not interfere with or create a hazard in the operation of Company's System or Company's business. If after installation, City's equipment is found to interfere with Company's System or business, Company and City shall work together to address the problem and, if deemed practical by Company, preserve City's access. In addition to the consideration set forth in Section 11, Company shall permit City to use, free of charge, extra space on its street light poles to install City...owned traffic control signs and decorative banners, with prior written approval from Company and provided that such use is consistent with the NESC and other applicable engineering and operational codes and standards. Notwithstanding any other provision in this Franchisell it is further agreed that Company shall not be responsible to any party or parties whatsoever for any claims, demands, losses, suits, judgments for damages or injuries to Persons or property by reason of the construction, maintenance, inspection or use of the traffic signal light systems, police and fire alarm systems, traffic control signs, or decorative banners belonging to City and constructed upon Company's poles or street light poles or in its ducts, and City shall indemnify and hold Company harmless against all such claims, losses, demands, suits and judgments, to the extent permitted by the Texas Tort Claims Act, but City does not, by this agreement, admit primary liability to any third party by reason of City's operation and use of such traffic signal light systems, police and fire alarm systems, traffic control signs, or decorative banners, such being a function of government. Section 16. City may conduct an audit or other inquiry, or may pursue a cause of action in relation to the payment of the Annual Franchise Fee only if such audit, inquiry, or pursuit of a cause of action concerns a payment made less than two (2) years before commencement of such audit, inquiry, or pursuit of a cause of action. City shall bear the costs of any such audit or inquiry. All books and records related to Company's operations under this Franchise shall be available to City. Upon receipt of a written request from City, such documents shall be made available for inspection and copying no later than thirty (30) days from the receipt of such request. Amounts due to City for past underpayments or amounts due Company for past overpayments shall include interest calculated using the annual interest rates for overcharges as set by the Texas Public Utility Commission. Said interest shall be payable on such sum from the date the initial payment was due until it is paid. HOU03:1055752.7 Section 17. The parties agree to waive any and all claims, asserted or unasserted, arising out of prior franchise agreements including, without limitation, the Prior Franchise, except those claims relating to Company's obligations as determined in an audit underway as of March 1, 2006. Section 18. Nothing contained in this Franchise shall ever be construed as conferring upon Company any exclusive rights or privileges of any nature whatsoever. Section 19. It shall be Company's obligation as provided in Section 8 hereof to furnish efficient electrical service to the public at reasonable rates and to maintain its property in good repair and working order except when prevented from so doing by forces and conditions not reasonably within the control of Company. Should Company fail or refuse to maintain its System in good order and furnish efficient service at all times throughout the life of this grant, except only when prevented from so doing by Force Majeure, or should Company fail or refuse to furnish efficient service at reasonable rates, lawfully determined by City, throughout the life of this grant, excepting only during such periods as Company shall in good faith and diligently contest the reasonableness of the rates in question, then it shall forfeit and pay to City the sum of Twenty Five Dollars ($25) for each day it shall so fail or refuse after reasonable notice thereof and a hearing thereon by City. Any suit to recover such penalty shall be filed within one year from the date the penalty accrues. Section 20. If any term or other provision of the Franchise is determined by a nonappealable decision by a court, administrative agency, or arbitrator to be invalid, illegal, or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of the Franchise shall nevertheless remain in full force and effect so long as the economic or legal substance is not affected in any manner materially adverse to either party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties shall negotiate in good faith to modify the Franchise so as to effect the original intent of the parties as closely as possible. SECTION 21. Subject to Section 15, Company, its successors and assigns, shall protect and hold City harmless against all claims for damages or demands for damages to any Person or property by reason of the construction and maintenance of its electricity transmission and distribution System, or in any way growing out of the granting of this Franchise, either directly or indirectly, or by reason of any act, negligence, or nonfeasance of the contractors, agents or employees of Company, its successors or assigns, and shall refund to City all sums which it may be adjudged to pay on any such claim, or which may arise or grow out of the exercise of the rights and privileges hereby granted, or by the abuse thereof, and Company, its successors and assigns, shall indemnify and hold City harmless from and on account of all damages, costs, expenses, actions, and causes of action, to the extent permitted by the Texas Tort Claims Act, that may accrue to or be brought by any Person, Persons, HOU03:1055752.7 company or companies at any time hereafter by reason of the exercise of the rights and privileges hereby granted, or of the abuse thereof. Section 22. In granting this Franchise, it is understood that the lawful power vested by law in City to regulate all public utilities within City, and to regulate the local rates of public utilities within City within the limits of the Constitution and laws, and to require all persons or corporations to discharge the duties and undertakings, for the performance of which this Franchise was made, is reserved; and this grant is made subject to all lawful rights, powers and authorities, either of regulation or otherwise, reserved to City by its Charter or by the general laws of this State. Section 23. This Franchise amends the Prior Franchise, and extends the term of the Prior Franchise for an additional thirty (30) year period and replaces all other former franchise agreements with Company, or its predecessors, which are hereby repealed. Section 24. City by the granting of this Franchise does not surrender or to any extent lose, waive, impair or lessen the lawful powers and rights, now or hereafter vested in City under the Constitution and statutes of the State of Texas and under the Charter of City to regulate the rates and services of Company; and Company by its acceptance of this Franchise agrees that all such lawful regulatory powers and rights as the same may be from time to time vested in City shall be in full force and effect and subject to the exercise thereof by City at any time and from time to time. Section 25. Within 30 days following the final passage and approval of this ordinance, the Company shall file with the City Secretary, accompanied by appropriate authorized corporate resolutions in a form acceptable to the City Attorney, a written statement in the following form signed in its name and behalf: "To the Honorable Mayor and the City Council of the City of laPorte, Texas: For itself, its successors and assigns, Grantee, CENTERPOINT ENERGY HOUSTON ELECTRIC, llC, hereby accepts the attached ordinance and agrees to be bound by all of its terms, conditions and provisions." CENTERPOINT ENERGY HOUSTON ELECTRIC, llC By: Name: Title: "Dated this the day of , 2006." HOU03:1055752.7 Section 26. This Franchise, having been published as required by r RELEVANT PROVISION(S)] of the r CITY~I:fARTER OR QTHERGOVE.RNIN~ DOCUMENll shall take effect and be in force from and after r ] days following its final passage and approval, and receipt by the City of Company's acceptance filed pursuant to Section 25. In compliance with the provisions of t. .RELf:"ANT . .. P~q"ISI()N(S)], . of.. . .. the r . CIJ'Y? GIiARTEROR OTHeR ~OVf:RNING D()CUftIIf:NT], the Company shall pay the cost of those publications and any costs associated with any elections held regarding this Franchise required by such r CITY CHARTER OR OTHER GOVERNING D()CUMENll provisions. Section 27. Every notice, order, petition, document, or other direction or communication to be served upon the City or the Company shall be deemed sufficiently given if sent by registered or certified mail, return receipt requested. Every such communication to the Company shall be sent to: Vice President, Regulatory Relations CenterPoint Energy, Inc. 1111 Louisiana Street Houston, Texas 77002 Unless and until changed by written notice given in accordance with this section, every such communication to the City or the City Council shall be sent to the r CONTACT INFORMATION] INSERT APPROPRIATE and, as applicable, to the r INSERT APPROPRIATE ADDITIONAL CONTACT INFORMATION] The mailing of such notice, direction, or order shall be equivalent to direct personal notice and shall be deemed to have been given the earlier of receipt or two business days after it was mailed. Section 28. The rights and remedies provided herein are cumulative and not exclusive of any remedies provided by law, and nothing contained in this Franchise shall impair any of the rights of the City or the Company under applicable law, subject in each case to the terms and conditions of this Franchise. HOU03:1055752.7 ASKINS & ARMSTRONG. P. C. ATTORNEYS AT LAW 702 W. FAIR MONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNOX W. ASKINS JOHN D. ARMSTRONG CLARK T. ASKINS TELEPHONE 281.471.1886 TELECOPIER 281.471.2047 K A SKINS@HOUSTON.RR.COM JOHN-A@SWBELL,NET eTA SKIN S@SWBELL.NET April 24, 2006 Hon. Mayor & City Council City of La Porte City Hall La Porte, Texas Re: Centerpoint Energy Proposed Franchise Agreement Effective July 1, 2008 Gentlemen: centerpoint Energy has presented a proposed renewal franchise agreement to the City of La Porte, for a 30 year term commencing July 1, 2008. Attached to this letter is a copy of City of La Porte Ordinance No. 532, which is the 50 year franchise passed and approved by City Council in 1958, and a copy of a letter agreement between the City of La Porte and Houston Lighting & Power Company, predecessor to Centerpoint Energy, changing the franchise payments from annually to quarterly. Article VII, "Franchises and Public utilities", of the Home Rule Charter of the City of La Porte, recognizes the importance of utility franchise agreements, by requiring special procedures for the passing and publication of franchise agreements. A copy of Article VII of the Home Rule Charter is attached to this letter. Fortunately, CenterPoint Energy has initiated the franchise renewal negotiations well prior to the expiration date of the current franchise. Before placing the franchise agreement on a City Council agenda as an action item, I recommend that City staff and the City Attorney's office, take the following steps, to-wit: 1. Ascertain whether other Centerpoint Energy franchises are expiring on the same time frame, particularly its franchise agreement with the City of Houston. If so, we will want to follow the negotiations by the City of Houston Public Service Department, and other cities whose franchises are currently expiring. 2. Steve Gillett, Director of Public Works, and his staff, should review the present and proposed franchise agreements, as they relate to the use of City street and alleys for electric utility purposes. Special attention should be given to the situation where open cuts of streets may be required, and coordination with other utilities, including the City's own water and sewer department. ASKINS & ARMSTRONG, P. C. ATTORNEYS AT LAW Hon. Mayor & City Council April 24, 2006 Page 2 3. The City has a contractual agreement with Centerpoint Energy for the construction and maintenance of street lights. The performance of this agreement should be reviewed, and any proposed contract revisions should be discussed. 4. I would financial franchise franchise franchise passed on suggest that the Finance Department prepare a summary, reflecting current receipts on the agreement, and projected receipts on the proposed agreement. city Council should be aware that fees by the City's franchised public utilities, are to the customers, on their monthly bills. These are my initial impressions of matters which need to be reviewed to prepare for final negotiations of the franchise agreement. There may be other matters which need to be reviewed, as City staff conducts its review of the present and proposed agreements. Yours very truly, ~;?c/. Knox W. Askins City Attorney City of La Porte KWA: sw Enclosure cc: Ms. Debra Brooks Feazelle City Manager Mr. John Joerns Assistant City Manager Ms. Cynthia Alexander Assistant City Manager Mr. Steve Gillett Director of Public Works Ms. Martha A. Gillett City Secretary ( \ , ,,-- \, B';-~ ;ff. ~3'"J- AN ORDINANCE GRANTING TO HOUSTON LIGHTING & POWER COMPANY, ITS SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVI- LEGE AND FRANCHISE TO CONDUCT. WITHIN THE CITY AN ELECTRICAL LIGHTING AND POWER BUSINESS AND TO ERECT, CO!iSTRUCT, r~AINTAIN, OPERATE, USE, EXTEND, REMOVE, REPLACE AND REPAIR IN, UNDER, UPON, OVER, ACROSS AND ALONG ANY AND ALL OF THE PRESENT AND FUTURE PUBLIC ROADS, HIGHWAYS, STREETS, LANES AND ALLEYS OF THE CITY AND OVER AND ACROSS ANY STREAM OR STREAMS, BRIDGE OR BRIDGES, NOW OR HEREAFTER OWNED OR CON- TROLLED BY IT A SYSTEM OF POLES, POLE LINES, TOWERS, TRANSMISSION LINES, WIRES, GUYS, CABLES, CONDUITS AND OTHER DESIRABLE INSTRUMENTALITIES AND APPURTENANCES (INCLUDING TELEGRAPH AND TEL~PHONE POLES AND WIRES FOR COMPANY'S OWN USE), NECESSARY OR PROPER FOR THE SUPPLY AND DISTRIEL~ION OF ELECTRICITY FOR LIGHT, POWER AND HEAT, AND FOR ANY OTHER PURPOSE FOR WHICH ELECTRICITY MAY BE USED, TO THE MUNICIPALITY AND IN- HABITANTS OF THE MUNICIPALITY, OR ANY OTHER PERSON OR PERSONS FOR A PERIOD OF FIFTY (50) YEARS; REGU- LATING THE USE OF STREETS BY THE COMPANY AND THE REPAIR AND RESTORATION OF STREETS DISTURBED BY CON- STRUCTION; CONTAINING A CONTRACT BY THE COMPANY TO FURNISH FIRST-CLASS SERVICE AND THE GRADE OF SERVICE TO ITS CUSTOMERS AS PROVIDED BY ITS RATE SCHEDULES EXCEPT UNDER CONDITIONS BEYOND THE COMPANY'S CONTROL; PROVIDING FOR THE TEMPORARY REMOVAL, RAISING AND LOWERING OF WIRES AND OTHER APPURTENANCES AND ESTAB- LISHING STANDARDS FOR THEIR CONSTRUCTION; PROVIDING FOR COMPENSATION TO BE PAID TO THE CITY; PROVIDING FOR USE BY THE CITY FOR ITS TRAFFIC SIGNAL LIGHT SYSTEM AND ITS POLICE AND FIRE ALARM SYSTEM OF CER- TAIN WIRE AND CONDUIT SPACE; PROVIDING THAT THIS FRANCHISE SHALL NOT BE EXCLUSIVE; PROVIDING THE COMPANY'S OBLIGATION TO FURNISH EFFICIENT SERVICE AT REASONABLE RATES; PROVIDING A SEVERABILITY CLAUSE; RESERVING ALL POWERS OF REGULATION; PROVIDING FOR INDEMNITY BY THE COI1PANY TO THE CITY; MAKING PROVI- SIONS WITH RESPECT TO MORTGAGES; MAKING MISCELLAN- EOUS PROVISIONS RELATIVE TO THIS GRANT OF FRANCHISE; REPEALING ALL PREVIOUS ELECTRICAL LIGHTING AND POW- ER FRANCHISE ORDINANCES; PROVIDING FOR ACCEPTANCE BY THE COMPANY; AND PROVIDING AN EFFECTIVE DATE. * * * * * * * BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LAPORTE: Section 1. That, subject to the terms, conditions and provisions of this ordinance, the City of LaPorte, Texas, hereinafter referred to as "City", does hereby grant unto Houston Lighting & Power Company, hereinafter called "Company", its successors and assigns, the right, privl1e ge and franchise to conduct within the boundaries of the City, as such boundaries now exist or may hereafter be extended, ) . .: "\;;:,;;::wt:~ . "j . j j I ( an electrical lighting and power business and to erect, con- struct, maintain, operate, use, extend, remove,. replace and repair, In, under, upon, over, across and along any and all of the p~esent and future public roads, highways, streets, lanes and alleys owned or controlled by the City, and over and across any stream or streams, bridge or bridges, now or hereafter owned or controlled by City, a system of poles, pole lines. towers, transmission lines, wires, guys, con- duits, cables and other desirable instrumentalities and appurtenances (including telegraph and telephone poles and wires for use of company), nec&~sary or proper for the pur- pose of carrying, conducting, supplying, distributing and selling to the municipality and the inhabitants of said city or other person or persons, firms or corporations, elec- tricity for light, power and heat, and for any other purpose for which electricity may be used; to carry, conduct, supply and distribute electricity by means of said poles, pole lines, towers, transmission lines. conduits, cables or other in- strumentalities, and to sell same to said City and inhabi- tants thereof, or to any other person or persons, firms or corporations. Section 2. Upon the filing with the City by the Company of the acceptance required hereunder, this fran- chise shall be 1n full force of fifty (50) years from and 19ft. and effect for a term and period after the ;.;[' day orj~ Section 3. All poles erected by the Company pur- suant to the authority herein granted shall be of sound material and reasonably straight, and shall be so set that they will not interfere with the flow of water in any gutter or drain, and so that the same will interfere as little as practicable with the ordinary travel, on the streets, 2. ( sidewalks, or other public ways. Within the streets or . other public ways of the city, the location and route of all poles, stubs, guys, anchors, lines, conduits and cables placed and constructed and to be placed and constructed by Company in the construction and maintenance of its electrical lighting and power system in the City, shall be subject to the reasonable and proper regulation, control and direction of the City, or of any City official to whom such duties have been or may be duly delegated, which regulation and control shall include, but not by way of limitation, the right to require in writing the relocation of Company facilities, exclusive of street lighting and facilities installed for service directly to the City, at Company's cost within the streets or other public way, whenever such shall be reason- ably necessary on account of the widening, change of grade, relocation, or other City construction within such streets or public ways. Section 4. The surface of any public road, high- way, streets, lanes, alleys, or other public place disturbed by Company in erecting, constructing, maintaining, operat~ ing, using, extending, removing, replacing or repairing its electrical lighting and power system shall be restored immediately after the completion of the work to as good a condition as before the commencement of the work and maintained to the satisfaction of the City, or of any City official to whom such duties have been or may be duly dele- gated, for one year from the date the surface of said public road, highway, street, lane, alley, or other public place is broken for such construction, maintenance or removal work, after which time responsibility for the maintenance shall become the duty of the City. No public road, highway, street, 3. ( lane, alley, or other public place shall be encumbered by construction, maintenance or removal work by company for a longer period than shall be necessary to execute such work. Section 5. The service furnished hereunder to the City and its inhabitants shall be first-class in all respects, considering all circumstances, and Company shall furnish the grade of s.ervice to its customers as provided by its rate schedules and shall mai~tain its system in reasonable operating condition during the continuance of this agreement. An exception to this requirement is auto- matically in effect when due to shortages in materials, supplies and equipment beyond the control of the Company and when due to fires, strikes, riots, storms, floods, war and other casualties, and when due to Governmental regula- tions, limitations and restrictions as to the use and avail- ability of materials, supplies and equipment and as to the use of the services, and when due to unforeseen and unusual demands for service. In any of which events the Company shall do all things reasonably within its power to restore normal service. Section 6. The Company on the written request of any person shall remove or raise or low~r its wires tempo- rarily to permit construction work in the vicinity thereof or to permit the moving of houses or other bulky structures. The expense of such temporary removal, raising or lowering of wires shall be paid by the benefited party or parties, and Company may require such payment in advance, being without obligation to remove, raise, or lower its wires until such payment shall have been made. The Company shall be given not less than forty-eight (48) hours advance notice to arrange for such temporary wire changes. All of Com- pany's lines for the transmission and distribution of 4. electrical energy, located within City, shall be constructed, operated and maintained, as to clearances, in accordance with the National Electrical Safety Code, as published in March, 1948, by the National Bureau of Standards, Handbook 30j provided, however, nothing herein shall impair the right of the City in the future by ordinance to adopt and r8quire compliance with any n€w, amended or revised code, or by ordinance to require compliance with such further or dif- ferent standards as may be found to be in the public interest. ~ection 7. In consideration for the rights and privileges herein granted, the Company agrees to pay to the City for each year of the term of this franchise the sum of $500 plus a sum equal to 4% of the gross receipts for such year, exclusive of receipts for street lighting, received by the Company from its electrical Hghting and pOlve!' .-.; !"r'~ for consumption within the corporate limits of the City. Pay- ment shall be made by the 15th day of each February for the preceding calendar year. For fractional calendar years said $500 shall be proportionately reduced and said 4% shall be based upon the gross receipts for that part of the year in- volved. Said payments shall be in lieu of any license charge or fee, street or alley rental, or other character of charge or levy by the City for the use or occupancy of the public reads, highways, streets, lanes, alleys or other publiC places in the City and in lieu of any pole tax or inspection fee tax. Section 8. In addition to the considerations set forth in Section 7, the Company shall hold itself ready to furnish, free of charge, subject to the use of the City, such pole space as may be required from time to time for the installation of City owned traffic, police and fire alarm system conductors; provided such conductor space does not exceed the capacity of one crossarm on anyone pole and provided such space 1s then available on existing poles. The specific location for th~se traffic, police and fire alarm conductors on Company poles shall be determined by 5. the Company and will be allotted at the time specific appli- cations for space are received from the City. All City traf- fic, police and fire alarm circuits on Companylpoles shall be installed in strict compliance with the applicable pro- visions of the National Electrical Safety Code, Handbook 30, as published in March, 1948, by the United states Department of Commerce, Bureau of Standardsj provided, however, noth- ing herein shall impair the right of the City in the future by ordinance to adopt any new, amended or revised code, or by ordinance to specify such further or different standards as may be found to be in the public interest. Where main underground duct linea are located between manholes, the Company shall permit free of charge the installation in one interior duct by the City of its traffic, police or fire alarm signal cablesj provided space is available in an in- terior duct not suitable for power circuits without inter- ference with the Company's system neutral conductors. All cables installed by the City in Company ducts shall be of the non-metallic sheath type to prevent corrosive or electro- lytic action between City and Company owned cables. A request for duct assignment shall in each instance be submitted to the Company and a sketch showing duct allocation shall be received from the Company prior to the installation of City cables in Company owned duct lines. All City owned conductors and cables, whether on poles or in duct lines, shall be constructed, maintained and operated in such manner as to not interfere with or create a hazard in the operation of the Company's electrical transmission and distribution system. It is further agreed that the Company shall not be responsible to any party or parties whatsoever for any claims, demands, losses, suits, judgments for damages or injuries to persons or property by reason of the oonstruction, mainte- nance, inspection or use of the traffic signal light system 6. or police and fire alarm systems belonging to the City and constructed upon Company's poles or in its ducts, and the City shall indemnify and hold the Company harmless against all such claims, losses, demands, suits and jUdgments, but the City does not, by this agreement, admit primary lia- bility to any third party by reason of the City'S operation and use of such police and fire alarm wires, such being a function of government. Section 9. Nothing contained in this ordinance shall ever be construed as conferring upon Company any ex- clusive rights or privileges of any nature whatsoever. Section 10. It shall be the Company's obligation as provided in Section 5 hereof to furnish efficient electri- cal service to the public at reasonable rates and to maintain its property in good repair and working order, except when prevented from so doing by forces and conditions not reason- ably within the control of Company. Should Company fail or refuse to maintain its properties in good order and furnish efficient service at all times throughout the life of this grant, except only when prevented from so doing by forces and conditions not reasonably within the control of the Company, or should the Company fail or refuse to furnish efficient service at reasonable rates, lawfully determined by the City, throughout the life of this grant, excepting only during such periods as the Company shall in good faith and diligently contest the reasonableness of the rates in question, then it shall pay to the City the sum of Twenty- Five Dollars ($25) for each day it shall so fail or refuse after reasonable notice thereof and a hearing thereon by the City. Any suit to recover such sum shall be filed within one year from the date of accrual. Section 11. If any provision, section, sub- section, sentence, clause, or phrase of this ordinance is 'r. for any reason held to ne unconstitutional, void cr invalid (or for any reason unenforceable), the validity of the re- maining portions of this ordinance shall not be' affected thereby, it being the intent of the City in adopting this ordinance that no portion thereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality or invalidity of any other portion, provision or regulation, and to this end, all provisions of this Jrdinance are declared to be severable. Section 12. The City by the granting of this franchise does not surrender or to any extent lose, waive, impair or lessen the lawful powers and rights, now or here- after vested in the City to regulate the rates and services of Company; and Company by its acceptance of this franchise agrees that all such lawful regulatory powers and rights as the same ~ay be from time to time vested in the City shall be in full force and effect and subject to the exercise thereof by the city at any time and from time to time. Section 13. The Company, its successors and as- signs, shall protect and hold City harmless against all claims for damages or demands for damages to any person or property by reason of the construction and maintenance of its electrial lighting and power system, or in any way growing out of the granting of this franchise, either directly or indirectly, or by reason of any act, negli- gence, or nonfeasance of the contractors, agents or em- ployees of Company, its successors or assigns, and shall refund to City all sums which it may be adjudged to pay on any such claim, or which may arise or grow out of the ex- ercise of the rights and priVileges hereby granted, or by the abuse thereof, and Company, its successors and assigns, shall indemnify and hold the City harmless from and on account of all damages, costs, expenses, actions, and causes 8. of action that may accrue to or be brought by any person, persons, company or companies at any time hereafter by reason of the exercise of the rights and privileges hereby granted, or of the abuse thereof. Section 14. The City recognizes that Company finances a substantial portion of its construction, im- provements and extensions with funds obtained through the issuance of bonds secured by a mortgage upon the prop- erties of the Company. In order to facilitate the con- struction, extension and improvement of Company's facili- ties and to insure the discharge of Company's obligations under this franchise the City agrees that in the event Company's mortgaged property shall be sold under a fore- closure of a mortgage thereon all rights and interests of Company in and under this franchise may be sold and assign- ed to any party purchasing all or a substantial part of the mortgaged property located within the City. Section 15. In granting this franchise, it is understood that the lawful power vested in the City to regulate all public utilities within City, and to regu- late the local rates of public utilities within the City within the lim~ts of the Constitution and laws, and to re- quire all persons or corporations to discharge the duties and undertakings, for the performance of which this fran- chise was made, is reserved; and this grant is made sub- ject to all lawful rights, powers and authorities, either of regulation or otherwise, reserved to the City by its charter or the general laws of the state of Texas. Section 16. This franchise replaces all former franchise agreements or ordinances with Company, or its predecessors, which are hereby repealed, such repeal to be effective upon the date operations are started under this franchise. 9. ( Section 17. The Company shall, within thirty (30) days from the date this ordinance is finally,passed and approved, file with the City a written statement sign- ed in its name and behalf in the following form: "To the City of LaPorte: "The Company for itself, its succes- sors and assigns, hereby accepts the above and foregoing ordinance and agrees to be bound by all of its terms and provisions. HOUSTON LIGHTING & POWER COMPANY By "Dated the , 19_ " day of Section 18. This ordinance shall take effect and be in force sixty (60) days after its final passage and ap- proval, and after publication once each week for four con- secutive weeks in The LaPorte Liberal, the official news- paper of the City and upon acceptance by the Company the term of this franchise shall begin and continue in accord- ance with Section 2 hereof. Passed first reading in full the 7$ day of ?/!~ , 19./7. final reading in full the 1J(~ay of Passed ~ ' 1947. Passed this the --LJ.!.aay of ~~ ,,~ Approved this the ~day of ~~ , 19/J /I-f~e~_ ~-<La/ /(. ~ a/ COMMISSIONERS ~:~~~ City Clerk 10. ( To the City of LaPorte: The Company for itself, its successors and as- signs, hereby accepts the above and foregoing ordinance and agrees to be bound by all of its terms and provisions. HOUSTON LIGHTING & POWER COMPANY By ~Z~ PresIdent Da ted the 22nd day of April , 19,?L. THE STATE OF TEXAS COUNTY OF HARRIS ) ~ I, Frank G. Baker, City Clerk of the City of LaPorte, Texas, certify that the above and foregoing ordinance was duly passed by the City Comm~sion of LaPorte, Texas, on first reading on the 7~ d0Y of ~ ' 1 95L, and on final(;eaa-Ing on ~.'j,' ay of ~ ' 195 , the ordi- ~nance receivin on 0 h passages,thereo the affirma- , ti ve votes of the Mayor a.p,<;1 l!iiiMl Conunissionerp of the . CitYj after the passagd\b~~uch ordinance the same was duly authenticated by the signatures of the Mayor and City Clerk of the City and duly recorded in full in the ordinance book of said City with the passage thereof duly noted in the minutes of the City Conunissionj pur- suant to the order of the City Commission said ordinance was published in full in The LaPorte Liberal, the offi- cial newspaper of the City of La.Porte, once a \'leek for four cOQ~cutive weeks"such publications having been on the ; ~day of ~ ' 1 95L, the~ day 0. 1 , 1 951L, the ~ day of , 195&::..' and the J(;, l;t day of , 195Y, all of wnrcnls evi- of puolication duly filed by the publisher of said official newspaper in the offi- cial records of the City of LaPorte and such publication was further duly noted upon the original record of said ordinancej that the ~ove and foregoing acceptance was duly filed on the I~ day of h ' 1 95L, in the official recoras of the C y LaPorte, Texas. IN TESTIMONY/VlliEREOF, wJj;l)ess my hand and :leal. this the ~ day of -41 / ' 195z:.. c7~J~. ,ti~MJ CITY CLERK, CITY OF LAPORTE, TEXAS of office ~ . Ctlf1'1 n if~~. \ -h ~ , O,,~; ".rv-.\ g len.-K \'-"IJ. l I A \\ ~ ""'\ The Light cODlpany Houston Lighting & Power P. O. Box 597 Seabrook, Texas 77586 (71.3) 474-4151 October 22, 1991 Honorable Mayor and City Council City of La Porte P. O. Box 1115 La Porte, Texas 77571 Dear Sirs: Under the terms of the stipulation agreed to in Houston Lighting & Power Company's recent rate case, we have agreed to make available to municipalities to which we currently make franchise fee payments some revised payment arrangements. There is no requirement that you adopt the revised franchise fee payment arrange- ments, but they are available if you consider them advantageous. The revised arrangements would provide for (i) quarterly franchise fee payments of most franchise fees that would otherwise be due annually, and (ii) monthly electric bill credits for franchise fees related to service provided to your municipality. The specific payment procedures contemplated by this arrangement are set forth in Exhibit "A" attached hereto. In the event the City of La Porte finds the attached procedures acceptable, please acknowledge your desire to implement the payment procedures:cttached hereto by executing this acknowledgement in the space provided below and returning one (1) fully executed copy of this acknowledgement to the undersigned on or before November 4, 1991. Otherwise, Houston Lighting & Power Company will continue to make franchise payments in accordance with the procedures already in place. If you have any questions concerning the attached arrangements, pleaase feel free to contact me at 474-0530. 'NI)-X-~V" Acknowledged this L, t'\.-- day of :r "-"'- -"",,- acting for and on behalf of the City of La Porte. 1991 by the undersigned, By 6<~-\: T: ~ Name: Ro~ e....'T T. ~Y'('~Y'-" Title: c.\.~ '{Yt~y\ A Subsidiary of Houston Industries Incorporated Exhibit "A" Franchise Payment Procedures 1. The Franchise Payment Procedures described herein shall be effective from and after the date (i) Houston Lighting & Power Company ("HL&P") has received a final order of the Public Utility Commission of Texas ("PUC") in Docket No. 9850, approving the terms of the stipulation dated February 27, 1991 (the "Stipulation") and (ii) the City of La Porte ("La Porte") has acknowledged acceptance of the payment procedures described herein. The first payment due under these Franchise Payment Procedures will be paid the later of (i) thirty (30) days after a final order in Docket No. 9850, or (ii) the date such payments would become due under the provisions of Article XI of the Stipulation, and shall include all franchise fees due from January 1, 1991 through each calendar quarter prior to such final order. Thereafter, within forty-five (45) days after the end of each calendar quarter, HL&P will pay to La Porte an amount equal to the franchise fees that would be due for electric service rendered during the preceding calendar quarter. The quarterly franchise payments will be calculated as provided in Ordinance No. 532, net of franchise fees relating to municipal accounts, which will be handled under Paragraph 2 below. 2. For municipal electric service accounts in the name of La Porte a monthly credit will be applied to each such account in an amount equivalent to the amount of franchise fees included in base rate charges for each account. Franchise fees due in excess of this monthly credit (if any) will be paid at the end of the quarter. 3. No later than the date by which the franchise payment for the preceding calendar year is due pursuant to the terms of Ordinance No. 532, HL&P shall determine the total franchise fee due to La Porte for the preceding calendar year, including any additional amount owing, after taking into account the payments previously made and credits given. If any overpayment is made by HL&P, such overpayment shall be credited against the next franchise payment made by HL&P or shall be paid by La Porte to HL&P, if no subsequent payments are owed. 4. Upon at least sixty (60) days prior written notice to HL&P, La Porte shall have the right to request HL&P to suspend the payment procedures provided for herein, in which event HL&P shall resume making payments of franchise fees in :he manner in effect as of the period immediately preceding the implementation of these Franchise Payment Procedures. 5. The Franchise Payment Procedures described herein are subject to modification pursuant to subsequent order of the PUC. If any aspect of these Franchise Payment Procedures is determined by any court or regulatory authority to be illegal, unauthorized or otherwise failing to satisfy the obligations of any party under the referenced Ordinance No. 532 or the order of the PUC approving the Stipulation is subsequently overturned in whole or in part, such procedures shall be terminated, and franchise payments shall thereafter be made as otherwise provided in said Ordinance. CHARTER 7.01 b. Ballots. Ballots used at recall elections shall conform to the following requirements: 1. With respect to each person whose removal is sought the question shall be submitted "Shall (name of person) be removed from the office of (name of office) by recall?" 2. Immediately below each such question there shall be printed the two (2) following propositions, one above the other, in the order indicated: "For the recall of (name of person)" "Against the recall of (name of person)." c. Results. If a majority of the votes cast at a recall election shall be against the recall of the officer named on the ballot, he shall continue in office for the remainder of his unexpired term, subject to recall as before. If a majority of the votes at such an election be for the recall of the officer named on the ballot, he shall, regardless of any technical defects in the recall petition, be deemed removed from office and the vacancy shall be filled as in other vacancies. 6.10. District judge may order election. Should city council fail or refuse to order any of the elections as provided for in this article, when all the requirements for such election have been complied with by the petitioning electors in conformity with this article of the Charter, then it shall be the duty of any one of the district judges of Harris County, Texas, upon proper application being made therefor, to order such elections and to enforce the carrying into effect of the provisions of this article of the Charter. ARTICLE VII. FRANCmSES AND PUBLIC UTILITIES* 7.01. Enfranchisement. a. Power of council. City council shall have power by ordinance to grant, amend, renew and extend all franchises of all public utilities of every character operating within the city. All ordinances granting, amending, renewing or extending franchises for public utilities shall not be finally passed until thirty (30) days after the first reading; and no such ordinance shall take effect until sixty (60) days after its final passage; and pending such time, the notice and caption of such ordinance, noting the place where the full text may be examined by the public, shall be published once each week for four (4) consecutive weeks in the official newspaper of the city, and the expense of such publication [is] to be borne by the proponent ofthe franchise. No public utility franchise shall be transferable except with the approval of council expressed by ordinance. b. Extensions. All extensions of public utilities within the city limits shall become a part of the aggregate property of the public utilities, shall be operated as such, and shall be subject to all the obligations and reserved rights contained in this Charter and in any original grant *State law references-Franchises, Vernon's Ann. Civ. St. art. 1175; franchise to use streets, VT.C.A., Transportation Code * 311.071 et seq. CHT:27 7.01 LA PORTE CODE hereafter made. The right to use and maintain any extension shall terminate with the original grant and shall be terminable as provided in section 7.02a. In case of an extension of a public utility operated under a franchise hereafter granted, such right shall be terminable at the same time and under the same conditions as the original grant. c. Other conditions. All franchises heretofore granted are recognized as contracts between the city and the grantee, and the contractual right as contained in any such franchises shall not be impaired by the provisions of this Charter, except that the power of the city to exercise the right of eminent domain in the acquisition of any utility property is in all things reserved, and except the general power of the city heretofore existing and herein provided for to regulate the rates and services of the grantee which shall include the right to require proper and adequate extension of plant and service and the maintenance of the plant and fixtures at the highest reasonable standard of efficiency. Every public utility franchise hereafter granted shall be held subject to all the terms and conditions contained in the various sections of this article whether or not such terms are specifically mentioned in the franchise. When the city chooses to exercise its power of eminent domain to acquire any public utility, the procedure to be used in such acquisition shall be as set forth in V.T.C.A., Property Code SS 21.011 to 21.065, inclusive. In valuing the property, the measure of damages shall be the fair market value of the physical properties taken together as one system. This power shall be in addition to and cumulative of any other powers of acquisition granted to or reserved by the city in a franchise ordinance. Prior to the purchase of any existing franchised utility system, either according to the terms of the franchise or by eminent domain, city council shall submit the question of purchase to the voters of the city, and such must be approved by a majority of those voting. Nothing in this Charter shall operate to limit in any way, as specifically stated, the discretion of councilor the electors of the city in imposing terms and conditions as may be reasonable in connection with any franchise grant. 7.02. Regulation. a. Right of regulation. All grants, renewals, extensions or amendments of public utility franchises, whether it be so provided in the ordinance or not, shall be subject to the right of the city: 1. To repeal the same by ordinance at any time for failure to begin construction or operation within the time prescribed or otherwise to comply with the terms of the franchise, such power to be exercised only after due notice and hearing. 2. To require an adequate extension of plant and service, and the maintenance of the plant and fixtures at the highest reasonable standard of efficiency. 3. To establish reasonable standards of service and quality of products and prevent unjust discrimination in service of rates. CHT:28 CHARTER 7.05 4. To prescribe the form of accounts kept by such utility. If the franchise does not prescribe the form of accounts kept by a utility, then it shall keep its accounts in accordance with the utility system of accounts for said utility prescribed by the appropriate state and federal utility regulatory agencies. 5. To examine and audit the accounts and other records of any such utility at any time and to require annual and other reports, including reports on local operations by each such public utility. 6. To impose such reasonable regulations and restrictions as may be deemed desirable or conducive to the safety, welfare and accommodation of the public. 7. To at any time require such compensation and rental as may be permitted by the laws of the State of Texas. b. Regulation of rates and service. Council shall have full power, after due notice and hearing, to regulate by ordinance the rates and service of every public utility operating within the city. Such power shall be subject to the exercise of power in each area of each utility by the appropriate agencies of state and federal government. 7.03. Franchise records. Within six (6) months after this Charter takes effect, every public utility and every owner of a public utility franchise shall file with the city, as may be prescribed by ordinance, certified copies of all franchises owned or claimed, or under which such utility is operated in the city. The city shall compile and maintain a public record of public utility franchises. 7.04. Accounts of municipality-owned utilities. Accounts shall be kept for each public utility owned or operated by the city, in such manner as to show the true and complete financial results of such city ownership and operation, including all assets, appropriately subdivided into different classes, all liabilities subdivided by classes, depreciation, reserve, other reserves and surplus, also revenues, operating expenses, including depreciation, interest payments, rental and other disposition of annual income. The accounts shall show the actual capital cost to the city of each public utility owned, also the cost of all extensions, additions and improvements, and the source of the funds expended for such capital purposes. They shall show as nearly as possible the cost of any service furnished to or rendered by any such utility to any other city or governmental department. City council shall annually cause to be made by a licensed certified public accountant and shall publish a report showing the financial results of such city ownership and operation, giving the information specified in this section or such data as council shall deem expedient, in accordance with section 5.08. 7.05. Franchise value disallowed. The value of the franchise granted by the city shall not be included in fixing reasonable rates and charges for utility service within the city or in determining the just compensation to be paid by the city for public utility property which may be acquired by eminent domain or otherwise. CHT:29 7.06 LA PORTE CODE 7.06. Consent of property owners. The consent of abutting and adjacent property owners shall not be required for the construction, extension, maintenance or operation of any public utility; but nothing in this Charter or in any franchise granted thereunder shall be construed to deprive any such property owner of any rights of action for damage or injury to his property as now or hereafter provided by law. ARTICLE VITI. GENERAL PROVISIONS 8.01. Publicity of records. All records and accounts of every office, department or agency of the city shall be open to inspection by any person, any representative of a citizen's organization or any representative of the press during normal business hours, as provided in the Texas Open Records Act, V.T.C.A., Government Code S 552.001 et seq. State law reference-Public records act, V.T.C.A., Government Code S 552.001 et seq. 8.02. Employers and officers. a. Personal financial interest. No member of city council or any officer or employee of the city shall have a financial interest, direct or indirect or by reason of ownership of stock in any corporation, in any contract or in the sale to the city, or to a contractor supplying the city, of any lands or rights of interests in any land, material, supplies or service. Any willful violation of this section shall constitute malfeasance in office, and any officer or employee of the city found guilty thereof shall thereby forfei t his office or position. Any violation of this section wi th the knowledge expressed or implied ofthe person or corporation contracting with the city shall render the contract voidable by council. b. Employment interest. No one who has been elected to city office shall be employed in a nonelective office by the city within the term for which he was elected or for one year thereafter. c. Nepotism. No person related,. within the second degree by affinity or within the third degree by consanguinity, to the mayor or any councilperson or to the city manager shall be employed or appointed to any office, position or clerkship of the city. This prohibition shall not apply, however, to any person who shall have been employed for two (2) years or more by the city at the time of the election or appointment of the officer to whom he is related. d. Bonds. Council shall require bonds of an municipal officers and employees who receive or payout any monies of the city. The amount of such bonds shall be determined by council and the cost thereof borne by the city. Council shall set the bond amount for the city manager and the director of finance at an amount not less than ten thousand dollars ($10,000.00). CHT:30 21 ) J '~b Qchm.+c~lce.v\ ~-ll\-OG f\J 0 Q C--n~1lJ '-Ia tPu 3)J 1 IV f ORDINANCE NO. 2006 - Jk 13' A AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDED EMPLOYMENT AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE CITY HANAGER OF THE CITY OF LA PORTE, HAlCING 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 an amended Employment Agreement with Debra Brooks Feazelle as city Manager of the City of La Porte, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the city to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the pUblic as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this ____ day of By: ATTEST: Martha A. Gillett city Secretary APPROVED: ~ -r 11d~ Cr. Askins City Attorney CITY OF LA PORTE , 2006. Alton E. Porter, Mayor " t'JO ~cn bJ ^ I . 1A\(E~ 4~J-W-D(" /vO !fCT70N mf-ft( 3/ tJ-1 fa to EMPLOYMENT AGREEMENT This Agreement, made and entered into , 2006, by and between the City of La Porte, State of Texas, a municipal corporation, hereinafter called "Employer" as party of the first part, and Debra Brooks Feazelle, hereinafter called "Employee" as party of the second part, both of whom understand as follows: WITNESSETH: Whereas, Employer desires to employ the services of said Debra Brooks Feazelle as provided by La Porte City Charter; and' WHEREAS, it is the desire of the Governing Board, hereinafter called "Council", to provide certain benefits, establish certain conditions of employment, and to set working conditions of said Employee; and WHEREAS, it is the desire of council to: (1) secure and retain the services of Employee and to provide inducement for her to remain in such employment; (2) to make possible full work productivity by assuring Employee's moral and peace of mind with respect to future security; (3) to act as a deterrent against malfeasance or dishonesty for personal gain on the part of Employee; and (4) to provide a just means for terminating Employee's services at such time as she may be unable to fully discharge her duties due to age or disability or when Employer may otherwise desire to terminate her employ; and WHEREAS, Debra Brooks Feazelle desires to accept employment as City Manager of said City. NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Duties Employer hereby agrees to employ said Debra Brooks Feazelle as City Manager of said Employer to perform the functions and duties specified in said La Porte City Charter and to perform other legally permissible and proper duties and functions as the Council shall from time to time assign. Section 2. Term A. Employee agrees to remain in the exclusive employ of Employer until , _' and neither to accept other employment nor to become employed by any other employer until said termination date, unless said termination date is affected as hereinafter provided. The term "employed" shall not be construed to include occasional teaching, writing, consulting or military reserve service performed on Employee's time off. B. In the event written notice is not given by either party to this Agreement to the other ninety (90) days prior to the termination date as herein proved, this Agreement shall be extended on the same terms and on conditions as herein provided, all for an additional period of one (1) year. Said Agreement shall continue thereafter for one (1) year periods unless either party hereto gives ninety (90) days' written notice to the other party that the party does not wish to extend this Agreement for an additional one (1) year term. Section 3. Termination and Severance Pay A. Pursuant to the provisions of Section 3.01 (b) of the Home Rule Charter of the City of La Porte, the City Manager may be appointed and removed at the will and pleasure of the City Council by a vote of the majority of the entire City Council. In the event Employee is terminated by the Council before expiration of the aforesaid term of employment and during such time that Employee is willing and able to perform her duties under this Agreement, then and in that event Employer agrees to pay Employment as severance pay and liquidated damages, eight (8) weeks' salary and benefits, payable in installments over Employer's normal pay periods. In the event Employee secures other employment during such eight (8) week period, the amount of such salary payments shall be reduced by the amount of salary payment received by Employee from such new employment. In the event Employee is terminated by Council for cause, as defined in the current edition of the City of La Porte Employee Policies Handbook, Employer shall have no obligation to pay the severance pay and liquidated damages designated in this paragraph. However, Employee shall be compensated for any accrued sick leave, holiday, and other accrued benefits. B. In the event Employer at any time during the term of this Agreement reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction for all employees of Employer, or the Employee resigns following a suggestion whether formal or informal, by the Council that she resign, then, in that event Employee may, at her option, be deemed to be "terminated" at the date of such reduction or such refusal to comply within the meaning and context of the herein severance pay provision. C. In the event Employee voluntarily resigns her position with Employer before expiration of the aforesaid term of his employment, then Employee shall give Employer thirty (30) days notice in advance, unless the parties otherwise agree. Section 4. Disability If Employee is permanently disabled or is otherwise unable to perform her duties because of sickness, accident, injury, mental incapacity or health for a period of four successive weeks beyond any accrued sick leave, or for twenty (20) working days over a thirty (30) working day period, Employer shall have the option to terminate this Agreement subject to the severance pay requirements of Section 3, paragraph A. However, Employee shall be compensated for any accrued sick leave, vacation, holidays, and other accrued benefits. 2 Section 5. Salary Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $ , payable in installments at the same time as other employees of the Employer are paid. In addition, Employer agrees to increase said base salary and/or other benefits of Employee in such amounts and to such extent as the Council may determine that it is desirable to do so on the basis of an annual salary review of said Employee made at the same time as similar consideration is given other employees generally. Section 6. Performance Evaluation A. The Council shall review and evaluate the performance of the Employee at least once annually. Said review and evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee. Said criteria may be added to or deleted from as the Council may from time to time determine. Further, the Mayor shall provide the Employee with a summary written statement of the findings of the Council and provide an adequate opportunity for the Employee to discuss her evaluation with the Council. 8. Annually, the Council and Employee shall define such goals and Performance Objectives which they determine necessary for the proper operation of the City and the attainment of the Council's policy objectives and shall further establish a relative priority among those goals and objectives, said goals and objectives to be reduced to writing. They shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided. C. In effecting the provisions of this Section, the Council and Employee mutually agree to abide by the provisions of applicable law. Section 7. Hours of Work It is recognized that Employees must devote a great deal of time outside the normal office hours to business of the Employer, and to that end Employee will be allowed to take compensatory time off as appropriate. Section 8. Automobile Employer shall pay Employee an automobile allowance to the Employee in the amount of $475.00 per month. The Employee shall be responsible for paying for liability, property damage and comprehensive insurance on the automobile. Section 9. Disability, Health and Life Insurance A. Employer agrees to provide Employee, Employer-paid insurance, such as life, health medical, hospitalization, and the like, and to pay the premiums thereon, equal to that which is provided for all other employees of Employer. 3 B. Employee agrees to submit once per calendar year to a complete executive physical examination by a qualified physician selected by the Employer. Employer shall receive a copy of all medical reports related to said examination. C. Employer agrees to purchase and to pay the required premiums on term life insurance policies equal in amount to two times the annual gross salary of Employee, with the beneficiary named by Employee. Section 10. Professional Development A. Employer hereby agrees to budget for and to pay the travel and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer, including but not limited to the Annual Conference of the Texas City Management Association, the Texas Municipal League and such other national, regional, state and local governmental groups and committees thereof which Employee serves as a member. B. Employer agrees to budget and to pay for the professional dues and subscriptions of Employee necessary for her continuation and full participation in national, regional, state and local associations and organizations necessary and desirable of her continued professional participation. growth and advancement. and for the good of the Employer. Section 11. General Expenses Employer recognizes that certain expenses that are strictly job-affiliated are incurred by Employee, and Employer hereby agrees to reimburse or to pay said expenses and the Finance Director is hereby authorized to disburse such monies upon receipt of duly executed expense or petty cash vouchers, receipts. statements or personal affidavits upon approval of Mayor. Section 12. Indemnification Employer shall defend. save harmless and indemnify Employee against any tort. professional, liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Manager. Section 13. Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. 4 Section 14. Other Terms and Conditions of Employment A. The Council, in consultation with the Employee, shall affix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the City Charter or any other law. B. Subject to the express provisions of this Agreement, all provisions of the City Charter and adopted regulations and rules of the Employer relating to vacation and sick leave, retirement and pension system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended, also shall apply to Employee as they would to other employees of Employer. C. Employee shall be entitled to receive four (4) weeks' vacation and shall be entitled to sick leave benefits as accorded department heads, including the provisions, subject to Section 3, paragraph A, of this Agreement, governing accrual and payment thereof on termination of employment. D. Upon execution of this contract and approval of same by Council, Employee shall be entitled to receive a one-time signing bonus in the amount of $ payable with the regular paycheck following its approval by Council. . E. Employer shall not at any time during the terms of this Agreement reduce the salary, compensation or other financial benefits of Employee, except to the degree of such a reduction across-the-board for all employees of the Employer. F. The terms and provisions of the current edition of the City of La Porte Employee Policies Handbook shall be fully applicable to the Agreement, except to the extent of any conflict, in which case the terms and provisions of this Agreement shall prevail. In the event of a conflict between the provisions of the Home Rule Charter of the City of La Porte and this Agreement, the Charter provisions shall prevail. Section 15. General Provisions A. The text herein shall constitute the entire Agreement between the parties. B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and the executors of Employee. C. This Agreement shall become effective commencing March 10, 2006. D. If any provision or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of the Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. 5 IN WITNESS WHEREOF, the City of La Porte has caused this Agreement to be signed and executed in its behalf by its Mayor and duly attested by its City Secretary and the Employee has signed and executed this Agreement, both in duplicate, the day and year first above written. City of La Porte, Texas By: Alton E. Porter, Mayor "EMPLOYER" Debra Brooks Feazelle, City Manager "EMPLOYEE" ATTEST: Martha A. Gillett, City Secretary [Seal) APPROVED AS TO FORM: Clark T. Askins, Assistant City Attorney This Contract/Agreement was discussed and approved in an open and regular scheduled City Council Meeting, , 2006. 6 1. no action taken 3/27/06 9 REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: C nthia Alexander Asst Cit Department: FINANCE Appropriation Agenda Date Requested: March 24, 2006 Source of Funds: NtA Account Number: Nt A Report: Resolution: Ordinance: xx Amount Budgeted: Amount Requested: N/A Exhibits: Budgeted Item: Exhibits: SUMMARY & RECOMMENDATION At this time, we would like to issue Certificates of Obligation Bonds for the following projects: Police Headquarters Sports Complex Trunk Sewer Main Water and Sewer Improvements Total 2,800,000 2,000,000 650,000 350,000 $5,800,000 :-- We are requesting consideration and approval of an ordinance authorizing the issuance of City of La Porte Texas Certificates of Obligations, Series 2006. Action Required bv Council: Approve Ordinance authorizing the sale of $5.8 million in Certificates of Obligation Approved for City Council Agenda L/ -' (q-(J& Date ~g 10, ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 2006; AND CONTAINING OTHER MATTERS INCIDENT THERETO BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: ARTICLE I FINDINGS AND DETERMINATIONS Section 1.1: Findings and Determinations. The City Council hereby officially finds and determines that: (a) The City of La Porte, Texas (the "City"), acting through its City Council, is authorized pursuant to and in accordance with the provisions of Texas Local Government Code, Chapter 271, Subchapter C, as amended (the "Act"), to issue certificates of obligation to provide all or part of the funds to pay contractual obligations to be incurred for the construction of public works and the purchase of materials, supplies, equipment, machinery, buildings, land and rights- of-way for authorized needs and purposes and for the payment of contractual obligations for professional services, to wit (i) construction of a Police Headquarters located at 23rd Street and Spencer Highway in the City, (ii) construction of a new Sports Complex located on the south side of Spencer Highway and the eastside of Spring Creek Gulley in the City, (iii) construction of a trunk sewer main on Weens Boulevard, (iv) various additional water and sewer improvements within the City, and (v) professional services rendered in connection with the above listed projects. (b) The City Council authorized the publication of a notice of intention to issue City of La Porte, Texas, Certificates of Obligation, Series 2006 (the "Certificates") to the effect that the City Council was tentatively scheduled to meet at 6:00 p.m. on April 24, 2006 at its regular meeting place to adopt an ordinance authorizing the issuance of the Certificates to be payable from (i) an ad valorem tax levied, within the limits prescribed by law, on the taxable property located within the City, and (ii) the revenues to be derived from the City's water and sewer system (the "System") after the payment of all operation and maintenance expenses thereof (the "Net Revenues") in an amount not to exceed $1,000, to the extent that ad valorem taxes are ever insufficient or unavailable for such purposes, provided that the pledge of Net Revenues is and shall be junior and subordinate in all respects to the pledge of Net Revenues to the payment of any obligation of the City, whether authorized heretofore or hereafter, which the City designates as having a pledge senior to the pledge of the Net Revenues to the payment of the Certificates. (c) Such notice was published at the times and in the manner required by the Act. (d) No petition signed by at least five percent (5%) of the qualified voters of the City has been filed with or presented to any official of the City protesting the issuance of such Certificates on or before the date of passage of this Ordinance. 1 (e) The City has determined that it is in the best interests of the City and that it is otherwise desirable to issue the Certificates to provide all or part of the funds to pay contractual obligations to be incurred for the purposes authorized by the Act. ARTICLE II DEFINITIONS AND INTERPRETATIONS Section 2.1: Definitions. As used herein, the following terms shall have the meanings specified, unless the context clearly indicates otherwise: "Act" shall mean Texas Local Government Code, Chapter 271, Subchapter C, as amended. "Attorney General" shall mean the Attorney General of the State of Texas. "Certificate" or "Certificates" shall mean any or all of the City of La Porte, Texas, Certificates of Obligation, Series 2006, authorized by this Ordinance. "City" shall mean the City of La Porte, Texas, and, where appropriate, its City Council. "City Council" shall mean the governing body of the City. "Code" shall mean the Internal Revenue Code of 1986, as amended. "Comptroller" shall mean the Comptroller of Public Accounts of the State of Texas. "Debt Service Fund" shall mean the fund by that name created pursuant to Section 5.2 hereof. "Fiscal Year" shall mean the City's then designated fiscal year, which currently is the twelve-month period beginning on the first day of October of a calendar year and ending on the last day of September of the next succeeding calendar year and each such period may be designated with the number of the calendar year in which such period ends. "Interest Payment Date," when used in connection with any Certificate, shall mean March 15, 2007, and each March 15 and September 15 thereafter until maturity or earlier redemption of such Certificate. "Issuance Date" shall mean the date on which the Certificates are delivered to and paid for by the Underwriters. "Ordinance" shall mean this Ordinance and all amendments hereof and supplements hereto. "Outstanding," when used with reference to the Certificates, shall mean, as of a particular date, all Certificates theretofore and thereupon delivered pursuant to this Ordinance except: (a) any Certificates canceled by or on behalf of the City at or before such date; (b) any Certificates 2 CERTIFICATE FOR ORDINANCE THE STATE OF TEXAS COUNT Y OF HARRIS CITY OF LA PORTE ~ ~ ~ We, the undersigned officers of the City of La Porte, Texas (the "City"), hereby certify as follows: 1. The City Council of the City convened in a regular meeting on April 24, 2006, at the regular meeting place thereof, within the City, and the roll was called of the duly constituted officers and members of the City Council, to wit: Alton E. Porter Mike Mosteit Barry Beasley Mike Clausen Howard Ebow Chuck Engelken Peter Griffiths Tommy C. Moser Louis Rigby Mayor Mayor Pro Tern Council Member Council Member Council Member Council Member Council Member Council Member Council Member and all of such persons were present, thus constituting a quorum. Whereupon, among other business. the following was transacted at said meeting: a written ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 2006; AND CONTAINING OTHER MA TIERS INCIDENT THERETO (the "Ordinance") was duly introduced for the consideration of the City Council. It was then duly moved and seconded that the Ordinance be adopted; and, after due discussion, such motion, carrying with it the adoption ofthe Ordinance, prevailed and carried by the following vote: AYES: 2. NAYS: Q ABSTENTIONS: Q 2. That a true, full and correct copy of the Ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that the Ordinance has been duly recorded in the City Council's minutes of such meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of such meeting pertaining to the adoptip),n of the Ordinance; that the persons named in the above and foregoing paragraph are the duly chosen,'~~~alified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and subject of the aforesaid meeting, and that the Ordinance wopld be introduced and considered for adoption at such meeting, and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; that such meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of such meeting was given as required by the Open Meetings Law, Chapter 551, Texas Government Code. HOU:2570085.1 P A.55ED pJID j>J)OprED this A.pn\ 24, 2006. ~TTEST: .: (SEA.L) ~ cl1'l Of 1...... PORTE, TEU5 ~~~ M.ayor S-l .J ~<l) t: ". .~t;[: HOU:648931.1 CITY OF LA PORTE, TEXAS CERTIFICATES OF OBLIGATION SERIES 2006 TRANSCRIPT OF PROCEEDINGS Andrews Kurth LLP 600 Travis, Suite 4200 Houston, Texas 77002 (713) 220-4200