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
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Attachment
A
Original
La Porte
Library
Sylvan Beach Depot, from southeast, showing 7
Original La Porte Library building, on site
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Attachment
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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
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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
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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
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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
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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
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2'/16'
~
20/.
1-
HSS2-3
STEP 2
Bend HSS (HSS2-3 shown)
flanges one time only.
Screw into position.
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STEP 1
Install HSS (HSS2-3
shown) over stud with
flanges bent at a 900 angle.
Typical SS1
Installation
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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.
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RPS Strap Ties
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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; .
!:
..
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.....
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.
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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
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,
,,--
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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
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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:
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M.ayor
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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