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HomeMy WebLinkAbout2006-09-25 Regular Meeting and Workshop Meeting of La Porte City Council Minutes A MINUTES OF REGULAR MEETING AND WORKSHOP MEETING OF THE LA PORTE CITY COUNCIL September 25, 2006 1. CALL TO ORDER The meeting was called to order by Mayor Alton Porter at 6:00 p.m. Members of City Council Present: Mayor Alton Porter, Mayor Pro-Tern Tommy Moser, Councilmembers Chuck Engelken, Mike Clausen, Barry Beasley, Mike Mosteit, Louis Rigby and Howard Ebow. Members of Council Absent: Peter Griffiths. Members of City Executive Staff and City Employees Present: City Manager Debra Feazelle, Assistant City Attorney Clark Askins, Police Chief Richard Reff, Assistant City Secretary Sharon Harris, City Secretary Martha Gillett, City Engineer Rodney Slaton, Planning Director Wayne Sabo, Fire Chief Mike Boaze, EMS Chief Ray Nolen, Patrol Sergeant Matt Daeumer, Purchasing Manager Susan Kelley, Purchasing Technician Cherell Daeumer, Downtown Revitalization Coordinator Debra Dye, Parks & Recreation Director Stephen Barr, Fire Marshal Cliff Meekins, Accountant LeAnn Miculka, Controller Phyllis Rinehart, Budget/Investment Officer Shelley Wolny, Public Works Director Steve Gillett, Assistant Fire Chief Champ Dunham, MIS Manager Al Owens, Animal Control Officer Clarence Anderson, Operations Manager Marlene Rigby and Human Resources Manager Robert Swanagan. Others Present: Paul Hickenbottom, Paul Chavez, Reverend Wayne Spears, Sue Gail Kooken, Char Bingham, Port of Houston, Lauren Barr, Gwenda Moser, Kristen Moser, Jan Lawler, Neal Welch, John Handy Houston Chronicle and other citizens and students. 2. Reverend Wayne Spears of Fairmont Park Baptist Church delivered the invocation. 3. Mayor Porter led the Pledge of Allegiance. 4. PRESENTATIONS / PROCLAMATIONS A. Mayor Pro-Tern Tommy Moser presented Certificate of Achievement for Excellence in Financial Reporting to Michael Dolby, Phyllis Rinehart, Shelley W olny and LeAnn Miculka. 5. Consent Agenda A. Consider approving Minutes of the Regular Meeting, Public Hearing and Workshop Meeting held on September 11,2006. B. Council to consider approval or other action amending the Community Development Block Grant Fund 032 Budget by an increase of$21,625.00 for construction of the paving and drainage for North 2nd Street. C. Council to consider approval or other action regarding an ordinance to award a bid in the amount of$113,133.42 to TEXCOR Construction for the paving and drainage City Council Regular and Workshop Meeting -September 25, 2006 Page 2 for North 2nd Street and receive direction from staff to issue a notice to commence construction. D. Council to consider approval or other action regarding a resolution designating the representative for Houston-Galveston Area Council for 2007 General Assembly and Board of Directors. E. Council to consider approval or other action regarding an ordinance authorizing a contract between the City of La Porte and the Port of Houston Authority, for providing secondary Fire Suppression Services. F. Council to consider approval or other action regarding a resolution amending authorized representatives to the Texas Local Government Investment Pool ("Texpool") for the City of La Porte. Council member Rigby pulled item D separately. Motion was made by Council member Ebow to reappoint Chuck Engelken and Barry Beasley to serve as representatives to the HGAC Board. Second by Council member Clausen. Motion carried. Ayes: Mosteit, Moser, Beasley, Engelken, Rigby, Clausen, Ebow and Mayor Porter. Nays: None Abstain: None Motion was made by Council member Engelken to approve items A, B, C, E & F presented. Second by Council member Ebow . Motion carried. Ayes: Mosteit, Moser, Beasley, Engelken, Rigby, Clausen, Ebow and Mayor Porter. Nays: None. Abstain: None. 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX P AYERS WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA. Tom Flanagan: James Flanagan Shipping Lease - Jim Flanagan spoke on behalf of brother & 110 year old company. Mr. Flanagan advised council he is working with staff to work out current issues on lease. 7. Council to consider approval or other action regarding an ordinance amending the Fiscal Year 2005-06 Budget for $15,995 in the Hotel/Motel Fund to expend donation monies held in an escrow account for Triathlon expenditures. Assistant Finance Director Michael Dolby presented summary and recommendation and answered Council's questions. City Council Regular and Workshop Meeting -September 25,2006 Page 3 Assistant City Attorney Clark Askins read: Ordinance 2836-E - 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. Motion was made by Councilmember Engelken to approve ordinance 2836-E as presented by Mr. Dolby. Second by Councilmember Mosteit. The motion carried. Ayes: Mosteit, Moser, Beasley, Engelken, Rigby, Clausen, Ebow and Mayor. Nays: None Abstain: None 8 Council to consider approval or other action regarding an ordinance approving and authorizing an agreement between the City of La Porte and the Economic Alliance Houston Port Region, ("Contractor"), a Texas non-profit corporation; for Economic Development Services. City Manager Debra F eazelle presented summary and recommendation and answered Council's questions. Jan Lawler made presentation as well. Assistant City Attorney Clark Askins read: Ordinance 2946 - AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE ECONOMIC ALLIANCE HOUSTON PORT REGION, ("CONTRACTOR"), A TEXAS NON-PROFIT CORPORATION; FOR ECONOMIC DEVELOPMENT SERVICES; APPROPRIATING NOT TO EXCEED $20,000 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Beasley to approve Ordinance 2946 as presented by Ms. Feazelle. Second by Councilmember Clausen. The motion carried. Ayes: Mayor Porter, Mosteit, Moser, Beasley, Engelken, Rigby, Clausen and Ebow. Nays: None Abstain: None 9. Council to consider approval or other action regarding an ordinance adopting an amendment to the personnel policy handbook and approve or deny changes recommended by the Chapter 172 Board. Human Resources Manager Robert Swanagan presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: Ordinance 2004-2781-C - AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTE EMPLOYEE POLICIES HANDBOOK BY AMENDING SECTION 9A, "RETIREE MEDICAL COVERAGE"; PROVIDING FOR THE TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE; PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE DATE HEREOF. City Council Regular and Workshop Meeting -September 25,2006 Page 4 Motion was made by Councilmember Moser to table ordinance 2781-C as presented bv Mr. Swanagan. Second by Councilmember Rigbv. The motion carried. In addition to the tabled item being brought back to a future meeting, the following items need to be brought back as well: "Council requested staff to bring back calculations not increasing retirees insurance and to bring back the Calculations for employees, over 65 and under 65." In addition, staff needs to bring back estimates for increasing premiums to new employees and define new employee. Ayes: Mosteit, Moser, Beasley, Engelken, Rigby, Clausen, Ebow and Mayor. Nays: None Abstain: None 10. Council to consider approval or other action regarding an ordinance appointing members to various Boards, Commissions, and adopt the ordinance of choice regarding the Zoning Board of Adjustment Chairman.. Mayor Porter presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: Ordinance 2004-2782-N - AN ORDINANCE APPOINTING MEMBERS TO VARIOUS BOARDS, COMMISSIONS, AND COMMITTEES, OF THE CITY OF LA PORTE; PROVIDING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. There was no action taken. Council directed staff to place on next agenda. 11. Councilman Engelken Chairman of the La Porte Development Corporation Board provided a report to City Council. Councilmember Engelken advised council the La Porte Development Corporation Board will meet again on October 9,2006. He further reported they discussed the 06-07 budget, economic development positions, future projects and received an update on sales taxes. 12. Councilman Beasley Chairman of the Ad Hoc Meet and Confer Law Review Committee provided a report to City Council. Councilman Beasley advised council a petition is being sent to officers to be signed in support of Meet and Confer. 13. Mayor Pro-Tern Moser provided a report to City Council on the Barbous Cut Meeting with Harris County. Councilman Moser reported the county is going to escalate the construction of this project. 14. Close Regular Meeting and Open Workshop at 6:50 p.m. A. Purchasing Manager Susan Kelley discussed purchase of Electricity. City Council Regular and Workshop Meeting -September 25, 2006 Page 5 Council directed staff to bring back a contract at the next council meeting for consideration. B. City Engineer Rodney Slaton discussed F216 Drainage Project Update. Consensus - Staff is on the right track and will continue. C. The Mercer Group Kay & Phillip Robertson provided council a presentation on the Employee Compensation Study. The Mercer Group provided council a preliminary report They provided an overview of the methodology used. Internal Evaluation Used factor evaluation compare at same set of criteria and compared each position internally. Started process by interviewing and providing an orientation to all department directors. In addition, group orientation meetings were held with employees. Implementation Every employee should be in the minimum of range. Compression adjustments should be according to tenure. Every employee should receive minimum increase. Internal transfers could go to mid point- Council directed stafflMercer group for the wording to be changed on internal transfers not to slight internal staff. Special Provisions and Recommendations Hiring employees - it was recommended new employees to be hired to up to midpoint depending on qualifications. Annual adjustments need to be made to the pay plan based on the cost of living. Promotions - employee go to the minimum of the range or receive 7% whichever is greater. Provide special consideration for positions difficult to retain or recruit to hire. They noted they will make a FLSA recommendation in the final report for all positions. Set a policy for fluid positions (positions with levels). City Council Regular and Workshop Meeting -September 25, 2006 Page 6 Information was gathered from cities listed in the report. The Mercer group reported information was not received from several cities. Council informed the Mercer group this was public information and they should have been able to obtain the information. Council requested staff to provide a final report by the last meeting in October and for the report to include benefits and other cities missing from survey. It was noted they do not want to increase the scope with the Mercer group but would like staff obtain benefit information from other cities. Closed Workshop and reconvened Regular Meeting at 7:46 p.m. 15. Administrative Reports City Manager Debra Feazelle reminded Council, Sylvia R. Garcia celebrating 20 years of public service-benefiting Projects Stars, Thursday, September 28, 2006 at 6:30 p.m. at Hyatt Regency Downtown, Salute to Industry Banquet Honoring Munday Corporation at Sylvan Beach Pavilion, October 5, 2006 at 6:30 p.m., the Bay Area Heritage Society Fish Fry Fundraiser Bill Bailey Roast October 10,20066:00 p.m. at Sylvan Beach Pavilion, Cynthia Alexander-Pearson retirement party, October 17,2006,4:00 p.m. until 7:00 p.m. at Sylvan Beach Pavilion and the TML Conference October 25-27,2006 Austin, Texas. 16. Council Comments Mosteit, Clausen, Rigby, Moser, Beasley, Ebow, Engelken and Mayor had comments. 17. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, 551-087, TEXAS GOVERNMENT CODE (CONSULTATION WITH ATTORNEY, DELIBERATION REGARDING REAL PROPERTY, DELIBERATION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, DELIBERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGATION, DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS) A. SECTION - 551-072 - (PROPERTY SALE OR EXCHANGE) MEET WITH CITY MANAGER, POLICE CHIEF AND CITY ATTORNEY REGARDING ALTERNATE ROUTE/PORT OF HOUSTON MEET WITH CITY MANAGER AND CITY ATTORNEY REGARDING COUNTY/HOTEL PROJECT B. SECTION - 551-072 - (PROPERTY SALE OR EXCHANGE) C. SECTION - 551-087 - (ECONOMIC DEVELOPMENT) MEET WITH CITY MANAGER AND CITY ATTORNEY TO DISCUSS ECONOMIC DEVELOPMENT JOINT VENTURE MEET WITH CITY MANAGER AND CITY ATTORNEY TO DISCUSS FLANAGAN D. SEC. 551.071- (PENDING OR CONTEMPLATED LITIGATION) City Council Regular and Workshop Meeting -September 25, 2006 Page 7 SHIPPING LEASE E. SEC. 551.071-(CONSULTATION WITH ATTORNEY WHERE DUTY OF ATTORNEY TO CITY UNDER THE TX. DISCIPLINARY RULES OF PROFESSIONAL CONDUCT CLEARLY CONFLICTS WITH CHAP. 551 OF TEXAS GOVERNMENT CODE) MEET WITH CITY ATTORNEY TO DISCUSS INDUSTRIAL DISTRICT AGREEMENTS WITH COMPANIES LOCATED IN INDUSTRIAL DISTRICTS Council retired to Executive Session at 7:55 p.m. and returned to the Regular Meeting and reconvened at 9:37 p.m. 18. There was no action taken during Executive Session. 19. There being no further business to come before Council, the Regular Meeting and Workshop was duly adjourned at 9:38 p.m. Respectfully submitted, 1JJft!!tTdfIi City Secretary Passed and approved on this 9th day of October 2006 ~~~~-G-- Mayor Alton E. Porter B REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: October 9, 2006 Requ,,'''' By: WaYUe~ ~ t Department: Planning Appropriation Source of Funds: 015 Account Number 015-9892-914-1100 Report: Resolution: Ordinance: x Amount Budgeted: $55,000 Exhibits: Ordinance Amount Requested: $55,000 Exhibits: Proposal Budgeted Item: Yes SUMMARY & RECOMMENDATION Upon completing Phase I of the lead remediation within the firing range, a decision was made to expand the test for lead to the drainage areas to ensure a clean site. As a result, the soils from the bottom of the detention pond and outfall channel showed traces of lead classifying the materials as a Class I and II waste that can be disposed oflocally. The remediation ofthe additional areas was submitted to and approved as a capital improvement project by City Council as Phase II Firing Range Lead Remediation in 05/06 in the amount of $55,000. Staff negotiated a professional service contract to manage and remove the contaminated soils with Effective Environmental, Inc., formerly GTI Environmental. GTI was the environmental firm that conducted the successful lead remediation of the Firing Range (PhaseI). The initial project cost estimate is under the $55,000 budget at $34,925. The cost estimate is based on a fixed quantity of removed material, of which is subject to change pending results of further testing. The scope of work requires the environmental company to remove the top one foot of material from the detention pond and the top 6" from the outfall channel. A remediation contingency is recommended in the amount of $20,075. The project contingency is to cover the cost for removal of additional contaminated soils that may be found beyond the initial scope of work as determined by the final soils test. Action Required bv Council: Consider approval of an Ordinance authorizing the City Manager to execute a contract with Effective Environmental, Inc. for the Lead Remediation of the bottom of the Detention Pond and Outfall Channel located at the Fire Training Facility in the amount of $34,925 and create a project contingency of$20,075. Approved for City Council A!!enda ~~~ )oh/o& Date I I ORDINANCE NO. 2006- J...~4-1 AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT , BETWEEN THE CITY OF LA PORTE AND EFFECTIVE ENVIRONMENTAL, INC. FOR THE LEAD REMEDIATION OF THE DETENTION POND AND OUTFALL CHANNEL AT THE FIRE TRAINING FACILITY, APPROPRIATING $34,925.00 PLUS A CONTINGENCY OF $20,075.00, TO FUND SAID CONTRACT, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN M:EETlNGS.LA W; AND. PROVIDING AN EFFECTIVE DATE HEREOF. BE ITORDAINED BY THE CITY COUNCIL OF THE CITY OF LA :PORTE: Section 1. The City Council' hereby approves and authorizes the' contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum of $34,925.00 plus a contingency of $20,075.00, from General Capital Improvement Fund 015. Section 2. The City Council officially finds, determines, recites, .and declares that a sufficient written notice of the date, hour, pl,!~e.. and subject of this m~~ting Qf the. City Council was posted at a place convenient to the public at the City Hal1~ofthe~Cltyfor the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, T.exas 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. 2 Ordinance No. 2006-.!l.q41 Section 3. Tbis Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED TillS []!!nAYOFc (:b/olt!( ,2006.. CITY OF LAPORTE C\" rv )L~L~,\<h-~ By: Alton E. Porter, Mayor ATTEST: Y!A ~ #4 Martha~~hett, City Secretary ~ TM~~ Knox W. Askins, City Attorney -t/r ~. {A/, ~ 2~ FFECTIVE NVIRONMENTAL, Inc. Fax ~ pages total September 22, 2006- To~ Reagan McPhail City of LaPorte Phone: 281.470.5065 Fax: 281.470.5005 Subject: Pond and Ditch Remediation Attached is the proposal to proceed with Phase II of the City of LaPorte Firing Range Lead Remedia:tion project. , I . As we discussed, the previous ~ork was completed under contract with Matt Gilbert; formerly of GTI Environmental. By acquisition, Matt Gilbert is now part of Effective Environmental. Mr. Gilbert is the managing partner in Houston for Effective Environmental, .Inc. The equipment and crew utilized to complete Phase One of this project will be the same for Phase Two. We are looking forward to this work. 1515 S. BeltliDe Rd. Balcb Sprillp~ Teus 75181 PhoDe: 972-319-1200 . Fax: 971-329-1206 %0%5 Turning Basin. Suite 800 Howrtoa. TImIlI17029-4652 Phone: 713-672-6100 FaJ:71~11~101 <:;/l::d S00<:;0LbT82:0l :wo~~ TS:8T 9002-22-d3S 2~ FFECTIVE NVIRONMENTAL, Inc. Proposal No,: M080910 September 22, 2006 City of LaPorte, Texas 604 W, Falrmont Parkway La Porte, Texas 77571 Attn: Mr, Reagan McPhail Re: Environmental Services "Turn-key" remediation of impacted soil Firing Range Pond and Ditch - Dear Mr, MCPf'!al" J::ffective Environmental, Inc. is pleased to present this proposal for phase two of the job. - We have evaluated the information from our conversation and my involvement with the first pha~e. Based upon that data and those discussions we have prepared the attached proposal which will rea~i1y meet your objectives of a clean closure. Prices are quoted for tasks with estimated parameters and contingencies included. Our quotation provides for the work required to successfully remediate and confirm a clean closure has been achieved. Any. additional requirements will be charged at the attached unit rates in addition to the base quoted. I have enclosed a copy of a work order for this project: If you desire to proceed with the work and concur with the scope provided--in the work orderl please sign the contract document and return one executed copy to us. If you have any questions or comments, please do not hesitate to call. We look forward to a successful project and a lasting relationship. s~ Matt Gilbert - 1515 S. BeldiDe ReI. ~e..spriDga, TUM 75181 PhoDe: 972-329wUOO' FIOO 972-3%9-1%06 1 202~ TurniDg BasiIl, Suite 800 :OollltoD, Texas 17029-4052- ~boDe~713-6~100 F~:713-671-6101 :wo~~ TS:8T 9002-22-d3S S/2:d S00S0LbT82:0l WORK ORDER FOR PROFESSIONAL SERVICES Pond Sludge Removal and Report Documentation This work order constitutes authorization by the City of LaPorte (Client) for Effective Environmental, Inc. to proceed with the fpllowing scope of services as required by the Client. SCOPE This work order provides for representation of the City of LaPorte and its interests in regards to the pond sludge removal and ditch clean-out, waste disposal and restoration services at the Fire Training Facility in LaPorte, Texas, Services provided by Effective Environmental, Inc. will include the following: Scope of Work: . Devise and implement a plan to remove pond seditnent and ditch soil using the volumes calculated by City personnel. . Physically excavate the sludge and soil; sampling to determine where the appropriate stopping point is. · Complete profiling and documentation of the waste for disposal and manifest preparation. · Physically load, transport and dispose of the contaminated media, · ~ollect confirmation samples as required to prove that all contamination has been successfully removed. · If required, Use Uncontaminated overburden and clean, imported fill to restore the work area to grade. · Provide a brief letter report detailing the events. All correspondence, labworK, manifests, photos etc. will be included. Additional work will be charged on a unit price basis and Is not expected to be a factor unless the information provided the by City of LaPorte is either incomplete or inaccurate. A schedUle for those units will be provided as required. Notes: 1. Work stoppage for reasons other than those under Effective Environmental, Inc. control are billed in addition to the rates quoted herein unless other arrangements are made prior to stoppage. 2. Quotation is based on eight (8) hour workdays. Validity is thirty (30) days. Standard Terms and Conditions apply. The Client will provide the following: 1. Rights of entry and safe access to the sit~_ 2. Information, if available. in regards to previous studies and consulting. 3. Information, if available. in regards to the utilities. 4. Access and use of the on~site facilities 5. Signed Work Order recognizing acceptance of our General Tenns and Conditions. 2 S/E:d S00S0LbT82:0l :wo~~ TS:8T 9002-22-d3S City of LllPorlc . rOlld 2l S~pl<ltllbcr2006 Page Two The scope dO$S not include the following services; however, jf required Effective Environmental, Inc. will provide them under a separate Scope of Work. Services not included in this scope of work include but are not limited to the following: 1. Groundwater sampling and analysis 2. Pumping of the pond to prepare and maintain the work area 3. Solidification of the material in any way 4. Removal, transportation and disposal of hazardous wastes 6. Additional site-work of any kind If the above services become necessary during the course of this scope, the client will be notified at the point in which Effective Environmental, Inc. is required to complete such services. However, based on the information obtained to date, we feel that the proposed scope is sufficient to successfully. remediate the area. TERMS AND COMPENSATION The volume estimates used to derive the base price were provided by the City. They are as follows: · Excavate contaminated sedUnent and soil; est.220 cy in place · Load, tra.nsport and dispose of Class II soil; est. 300 cy removed · Sample for Ph to determine disposal options and stopping point · Purchase, transport and place clean, select fill; 0 cy . Mob! demob, vis queen, misc. materials, etc. for yardage above . Prepare waste profiles, manife~ts, labels, transport! disposal . Document the activities We have been assured by City personnel that the pond will be dry and suitable. for placement ofa wide-track dozer. Our plan and prlc.ing is predicated upon the fact that upon arrival we can place the dozer in the pond to push the material into the SW comer. An ~caYa:tor will then be utilized to remove the sediment from the pond and place it directly into transport trucks. The same procedure will be followed for the ditch cleaning process. If conditions at the site do not confonn to the plan above, we may be forced to employ a long- stick excavator, pumping, drying and mixing activities to prop~rly complete the work. As always, the City will have the option to utilize its own equipment and labor resources to assist. ... Continued 3 S/v:d S00S0Lvl82:m :NO~~ 2S:SJ 9002-22-d3S City Of Lt\PIl~ - Pond :u September 2006 ~"8e Tlltt,~ Work shall be performed under the terms and conditions of this agreement between the City of LaPorte and Effective Environmental, Inc. Compensation for services described In the scope shall be on a lump sum basis for the specific: tasks and unit price costs for additional efforts. The "Turn-key" cost for this service is $34,925 (3-days on~lte). Terms are net 30 days afterwork is complete. Unit Costs: · Excavator and dozer wI operators (daily rate) . ...,.... .,. ...... ....... · Long-stick wI operator (l..week min) ..,..... .... ..........."......... . Long~sticl<; ll;J.ove in and out , .. . .. , .. .. . .. , . .. . .. .. . .. .. .. . .. . .. . .. " .. " . Move in and out (other equip) ....,...,............... ........,........, . Professional hourly r"'dte .............. ...,........... ..................... · Foreman! Office mgr. hO'l.I1'ly rate ......... ......... .. ....."." ... .. H' . Field or clerical hourly rate ................... .... ..............",..,.... · Start! stop mob and demob for persoIUlel and instrwnents . . . , ,. . " , · Load~ transport and dispose of Class II soil; ... ,....,. ,. ... .... ,. .,.. . Load~ transport and dispose of Class I soil; ................. .......... . Solidification of soil at the landfill ......... ... ............... ... .. ...... · Additional sa.mplin~ and analysis (~"tandard TAT) ... ........... .. ... · Purchase, transport and place clean, select fill; . . . . , . . . . .. . .. . ... . . ... . Visqueen, misc. materials, etc. ......... .... ....... .. ......... .. .. . . .. .. ". · Fuel surcharge (equipment, transport, dillpO$IIl, movement and solidification) $1,450.00 day $6,140.00 week $ 625.00 each $ 250.00 each $ 165.00 hour $ 65.00 hour $ 38.00 hour $ 165.00 each $ 29.00 cy $ 62.00 ton $ 32.00 ton $ 100.00 each $ 14,00 cy $ cost + 15% $ 15% By signing below I hereby authorize Effective Environmental, Inc. to represent the City of LaPorte for the Scope-.ofwServices outlined above. Matt Gilbert and Effective Environmental, Inc. representatives have authorization to conduct affairs with Disposal facilities and other involved parties on our behalf. I consent fully to the financial obligation and terms of payment. I am authorized to commit the City in this matter. :Jo~ It Joe r f' S- Print :fl\..lay,'rn {~.ht ~Qtt~/L Title v 10 - lD - () ~ Date 4 S/S:d S00S0Lt,m2 : Dl :wo~~ 2S:ST 9002-22-d3S D REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: October 9, 2006 Requested By: Wayne J. Sa~ I.;J) / Wf Source of Funds: N/A Account Number: N/A Department: Planninl.!: Report: _Resolution: _Ordinance: l Amount Budgeted: N/A Amount Requested: Exhibits: 1. Ordinance 2. Permit Application 3. Letter of Request 4. Area Map Budgeted Item: _YES -LNO SUMMARY & RECOMMENDATION The City has received an application from Enterprise GC, L.P. to install a 12" Natural Gas Liquids Pipeline generally along the southernmost line in the West Fairmont Parkway right-of-way and lying within an existing pipeline corridor. The pipeline installation will begin 3413' West of Bay Area Boulevard and end 877' East of Bay Area Boulevard. The pipeline will operate at a maximum pressure of 1480 psig. In reviewing the permit application and plans as submitted, the City Engineer and Public Works Department have approved the plans and deem no conflict is anticipated with existing city infrastructure. Harris County has approved a permit for the pipeline segment which crosses the Bay Area Boulevard right-of-way. The request meets all requirements of Ordinance 2004-2755. The application fee of $1000.00 has been paid. Any future relocation of the pipeline permitted within the City, State, or County rights-of-way shall be at the sole expense of the permittee. In accordance with Section 102-236 and 102-237, City Council must review and approve the permit application. If approved, City Council will thereby authorize the Director of Planning or his designee to execute the permit in duplicate originals, one which shall be delivered to the permittee and one which shall be retained by the City. Recommendation: Staff recommends that City Council authorize the Planning Director to execute the permit as requested by applicant. Action Required of Council: Consider approval of ordinance to authorize the Planning Director to execute the permit as requested by applicant. Approved for City Council Agenda Yld Dat ORDINANCE NO. 2006- .2-1<< AN ORDINANCE GRANTING A PERMIT UNDER ORDINANCE NO. 2004-2755, BEING CHAPTER 102, NATURAL RESOURCES, ARTICLE IV, "PIPELINE TRANSPORTATION" OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE, TEXAS, TO CONSTRUCT A 12-INCH PIPELINE FOR THE TRANSPORTATION OF NATURAL GAS LIQUIDS; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council of the City of La Porte has received an application dated September 17, 2006, from ENTERPRISE GC, L.P., requesting a permit under Ordinance 2004-2755, being Chapter 102, Natural Resources, Article IV, "Pipeline Transportation" of the Code of Ordinances of The City of La Porte, to construct and operate its 12-inch pipeline for the transportation of NATURAL GAS LIQUIDS, crossing the City of La Porte, all as shown on said application. The application of ENTERPRISE GC, L.P. has been reviewed by the Director of Planning, who has found that said application meets all requirements of Ordinance 2004-2755, and has recommended its approval. Section 2. The City Council of the City of La Porte hereby approves the application of ENTERPRISE GC, L.P., dated September 17, 2006, and this Ordinance authorizes the Director of Planning or his designee to execute the permit as requested by applicant. ~ Ordinance No. 2006- .J/11t 2 Section 3. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place, and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered, and formally acted upon. The City Council further ratifies, approves, and confirms such written notice and the contents and posting thereof. PASSED AND APPROVED THIS ~DA Y OF (J:/. , 2006. CITY OF LA PORTE By:~Y~d{- Alton E. Porter, Mayor ATTEST: 4J? b/.IL #-ffA- Martha Gillett, City Secretary APPROVED: 1 . // C:G4~ ft,! C::~J Knox W. Askins, City Attorney CITY OF LA PoRTE. TEXAS PlPB.JNEPERMIT APPLICATION ............___....................._INFORMATIOft ON 0fINER..AND ~ ._.______...____..._.._ Company Name: ENTERPRISE GC, L. P . ~~PO: BOX 4324, HOUSTON, TX 77210~4324 PhoneandFaxNumber: 713-803-8373ph 713-803-8390fax Person SubmitIlng Applicafion: ALLEN WAGERS TIlle ofPersan SubmItIIng AclPIIcaIion: RIGHT-OF - WAY AGENT , '713-644-3219ph PhoneandFaxNumber:- 713-649-0020fax Email:alwagers@gulonline.com ~Lmathews@eprod.com AdingfarOwneras: PERMIT AGENT ~ ContactforSUbmiltallnfonnatiorr. KYLE L. WEBSTER l1IIeofPrinclpalContact: ~ RIGHT-OF-WAY MANAGER PhoneandFaxNumber: 713-803-8206.ph Email:kwebster@eprod.com 713-803-2801fax ..........................INFORMAOON ON TwENTY.FOUR HOUR EMERGENCY CONrACTS.~_.._..__.._._. Twenty-FourHourEmergencyConlact: LIQUIDS CONTROL CENTER TllIeofTwenty-FourHourEmergenc.yConIact: JEFF V. MYERS, REGIONAL MANAGER Phone and Fax Number: 1-800-546-3482 EmaiI: ;vmvers@eprod.com 0Iher Numbers for Emergency Con1act (pager, ceDular, etc.): 71 3 - 8 0 3 - 8 7 3 0 A1Iema1eTwenty-FourHourEmergencyContacl: 800 NUMBER ABOVE-24-HOURS Tille of Allemale Twenty-Fotr Hour Emergency Contact Phone and Fax Number: Emat OIher Numbers for Allemate Con1act (pager, ceRufar, etc.): ............ ...... .......... ....... ....... ....BAslc INFORMA TlON ON PIPELlHE......._....__..... .......... ... ................ SIze in Diameter: 1 2 . 750" O. D . Commodily(s): NATURAL GAS LIQUIDS ~~ NEW PIPE BEGINS 3413' WEST OF BAY AREA BLVD. AND 26' , SOUTH OF FAIRMONT PARKWAY. DesfInatIon Point 877' EAST OF BAY AREA BLVD. & 1 40' SOUTH OF FAIRMONT PARKWAY. Normal Operating Preslue: 1 000 PST G . Maximum Operating PressuFe: 1 4 8 0 . PSI G Maxinum Allowable Temperature ft applicable): N / A GULLETT & ASSOCIATES, INC. 7705 South Loop East - 77012 P.O. Box 230187 -77223 Houston, Texas 713-644-3219 Fax: 713-644-1547 September 15, 2006 Planning Department Mr. Rodney L. Slaton City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 RE: Permit Application package for ENTERPRISE GC, L.P. to install one 12" pipeline within the city limits of the City of La Porte, Harris County, Texas. Dear Mr. Slaton: ENTERPRISE GC, L.P. a Delaware limited partnership whose address is P.O. Box 4324 Houston, Texas 77210-4324, is hereby requesting a pipeline permit. The pipeline will be used to transport natural gas liquids (MSDS sheet attached) from an existing pipeline in La Porte to a proposed meter site in La Porte. The route through the City of La Porte is shown on the attached map, and described in the permit application form. The Bay Area Boulevard crossing has been permitted through Harris County and a copy of the approved permit is attached, with the plan & profile. The 12" pipeline will be installed in an existing pipeline corridor or parallel existing pipelines the entire route. The pipe will be 12.750" outside diameter with a 0.375" wall thickness, and will be API 5L X 52 ERW pipe with 15-22 mils thick fusion bond epoxy coating and 30 mils aro coating. The pipeline will operate at a maximum operating pressure of 1480 PSI, will be tested to a minimum 1850 PSI,and have a minimum yield strength of 52,000 PSI. The pipeline will be regulated by the Texas Railroad Commission as an Intrastate Pipeline. All design, materials and construction will, as a minimum, comply with the following codes, ordinances and standards as applicable: · The Department of Transportation ("DOT") Standard CFR Title 49, Part 195 "Transportation of Hazardous Liquids by Pipeline", and The "Railroad Commission of Texas, Pipeline Safety Rules, Part N . ASME B31.8. "Gas Transmission and Distribution Piping Systems, . U.S. Department of Labor Regulations Title 29, CFR 1910 and 1925, "Occupational Safety and Health Standards", . API 1104, "Standard for Welding Pipelines and Related Facilities". ENTERPRISE GC, L.P. hereby makes this statement, that it agrees to the conditions and obligations set out in ORDINANCE NO. 2004 - of the City of La Porte Pipeline Ordinance; Section 1; Article N. Pipeline Transportation, Sec 102-235 Application for Permit 3 (j), 3 (k), and 3 (I), and all sections thereof that apply, regardless if said section( s) are specifically mentioned in this letter. The anticipated construction start date is scheduled to begin by October 1,2006. Also enclosed herewith is a check in the amount of$ 1,000.00 for initial permit fee and the appropriate insurance certificate. If additional information is required, please contact Allen Wagers; at (713) 644-3219 or 713-898-5551. Thank you in advance for your prompt attention to this matter. Sincerely, ~~~ Land & Right of Way Department --' 0- ~ N.T.S. w w w w AREA MAP TO ORD. 2006- ____ CITY OF LA PORTE, TX *** CUSTOMER RECEIPT *** Batch ID: PE_TEMP 9/25/06 01 Receipt no: 141992 Type SvcCd Description Amount IF MISC LIC/PERMITS & FEES Qty 1.00 $1000.00 PIPELINE FEE/ENTPRS PROD SO OF FAIRMONT PK 877' E.OF BAY AREA BLVD. AND 140 S OF FAIRMONT PRKY Tender detail CK Ref#: Total tendered: Total payment: 5803 $1000.00 $1000.00 $1000.00 Trans date: 9/25/06 Time: 10:00:45 THANK YOU FOR YOUR PROMPT PAYMENT E REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 25. 2006 Requested By: Susan Kellev ;1~ Appropriation Source of Funds: Various Department: Purchasing Account Number: Various Report: Resolution: X Ordinance: Amount Budgeted: $1,560,551 Exhibits: Resolution Authorizing Signatory Authority Amount Requested: $ Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION On September 25" 2006, staff presented information concerning various electricity aggregations, including H-GAC Energy Purchasing Corporation, General Land Office (GLO), and a Gulf Coast version of Cities Aggregation Power Project (CAPP). During the workshop sessions, Council agreed to renew the current contract with H-GAC. At the City's request, H-GAC will obtain pricing from pre-contracted vendors and GLO. This process will ensure CGP Solutions verifies all City ESIs, monitors the market on a daily basis, and recommends the optimum time to obtain pricing. Staff Recommendation: Approve a resolution authorizing signatory authority to the City Manager or Assistant City Manager to execute a contract for the supply of electricity. Action Required bv Council: Authorizing the City Manager, Assistant City Manager, or their designated representative the authority to obtain pricing and contract terms and enter into an agreement with an electricity provider through H-GAC Energy Purchasing Corporation. A )t'/fL Date / ((es . ). 00(,-24 Resolution Authorizing Signatory Authority for Participation in the H-GAC Energy Purchasing Corporation The governing body of the City of La Porte grants authorization to the City Manager, Assistant City Manager and/or their designated representative to act in behalf of this entity to review H-GAC approved pricing offers from contracted vendors or any requested provider and execute a favorable contract for the supply of electricity. :rvt1-~ ri vYl Printed Title r-P Ci~ ntQ ~I I 0 ~ Oy Date A REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 10-1-06 Appropriation Requested By: ~\..s Rohert Swanagan Source of Funds: Medical Fund Department: H\llllllA ResQ\lrces Account Number: 014-6144-515-6061 Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Ordinance 2004-2781 Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: See n~low SUMMARY & RECOMMENDATION A. This amendment to Ordinance 2004-2781 would update the language to Exhibit A-5 Premiums to read: The Total Plan Cost is the Total annual dollar allocated each year by budget as approved by City Council for the City of La Porte for Health Insurance for each employee, including employee and employer contributions. This ordinance also includes language incorporating the Chapter 172 recommendations (except item E Recruitment Incentives) 1. Backup E-mail from Clark Askins B. Copy of Hilb Rogal & Hobbs information in reference to prior 172 Board Materials 1. Current retiree insurance cost over 65 years 2. Current retiree insurance cost under 65 years 3. New Hires calculations C. Language clarification: Disability Eligibility Requirements D. Councilmember question: "If an employee has 80 points and has worked 30 years that they pay the same amount as an active/current employee. What would the cost be?" E. Recruitment Incentives F. Hilb Rogal Hobbs New Schedules, Retiree cost freeze ! Action Required bv Council: Amend Ordinance 2004-2781 authorizing change in language which defines Premium cost allocated by the City of La Porte each year. City Council needs to take action on remaining Chapter 172.recommendation from 8/1 0/06 meeting which are Recruitment Incentives and provide directions on item F. Retiree Costs. ORDINANCE NO. 2004-2781-C AN ORDINANCE ADOPTING AN AMENDMENT TO THE CITY OF LA PORTE EMPLOYEE POLICIES HANDBOOK BY AMENDING SECTION 9A, "RETIREE MEDICAL COVERAGE"; PROVIDING FOR THE TERMS AND CONDITIONS OF RETIREE MEDICAL COVERAGE; PROVIDING AN EFFECTIVE DATE OF SAID AMENDMENT; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City of La Porte Employee Policies Handbook is hereby amended, by amending Section 9A, "Retiree Medical Coverage", as shown on Exhibit A attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. If any provisions, section, subsection, sentence, clause, or phrase of this ordinance or amendment of the City of La Porte Employee Policies Handbook hereby adopted, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of this Ordinance or their application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this new Ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any constitutionality, voidness or invalidity of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. Section 3. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council is posted at a place convenient to the public at the City Hall of the city for the time required by law preceding this meeting, as required by the Chapter 551, Tx. Gov't Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. Except as amended by this ordinance, Section 9A, "Retiree Medical Coverage", of the City of La Porte Employee Policies Handbook, shall remain in full force and effect. Section 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. Passed and Approved this Cd!!: day of fl,/vPJe ( ,2006. CITY OF LA PORTE By: ~~~~ Alton E. Porter, Mayor ATTEST: Lf!1 t2JtiL eYP1/ Martha Gillet, City Secretary APPROVED: /./~-'DIA_/ /( ./ ~I{ / - tlAr'Jt-.r/.-:vJ Clark T. Askins, Assistant City Attorney [orr~cJcJ vefSlo!J ~Irf>S-eJ IY-f COlA n ~i(" ~!)I(, 1t--1- '-11l./! Exhibit A O~1 mt6h"'J {o I'~I () f, 9 A Retiree Medical Coverage 1. The following persons are eligible for retiree medical coverage: A. Present retirees of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System, who have retired in accordance with the City of La Porte Employee Policies Handbook; and were employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health Ian 0 tion. All ap licable costs of the Ian will still appl . . Retirees who are self- employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. B. City employees who retire from the City of La Porte employment on or before December 31,2005, as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 10 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time oftheir retirement. Retirees re- employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan 0 tion. All ap licable costs of the Ian will still apply. Retirees who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. C. City employees who retire from City of La Porte employment on or after January 01,2006 and (1) who have a combination of years of service with the City of La Porte, plus age, totaling 80; and (2) who retire as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 20 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondar , while workin for a new em 10 er offering a health plan 0 tion. . All applicable costs ofthe Plan will still apply. For those retirees who are self-employed, occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on a cost schedule determined by years of service, as established under Section 5, "Premiums", of this chapter. D. City employees meeting the eligibility requirements for (1) disability retirement under the Texas Municipal Retirement System Act and (2) have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% ofthe city cost. 2. The retiree and dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. The Retiree and dependent coverage will be secondary for Retirees with 30 or more years tenure with the City of La Porte, who have employer sponsored health coverage available through their new employer. If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 25 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter.:. who work for another employer offering health coverage shall not be eligible for retiree health coverage from the City after their subsequent employment ends, re ardless of the len th of service with the subse uent employer, 4. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 5. Premiums: The City of La Porte utilizes a self-funded medical plan so there are no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. Costs to the retiree, retiring on or after January 01,2006, shall be based on a cost schedule determined b ears of service, At least 20 years of service Retiree pays 60% of city cost + Dependent premiums At least 21 years of service Retiree pays 55% of city cost + Dependent premiums At least 22 years of service Retiree pays 50% of city cost + Dependent premiums At least 23 years of service Retiree pays 45% of city cost + Dependent premiums At least 24 years of service Retiree pays 40% of city cost + Dependent premiums At least 25 years of service Retiree pays 35% of city cost + Dependent premiums At least 26 years of service Retiree pays 30% of city cost + Dependent premiums At least 27 years of service Retiree pays 25% of city cost + Dependent premiums At least 28 years of service Retiree pays 20% of city cost + Dependent premiums At least 29 years of service Retiree pays 15% of city cost + Dependent premiums At least 30 years of service Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by you; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary su ort and maintenance. De endent children remain eli ible until a e 25. 6. Retirees may not add dependents once retired. There are no qualifying events to add dependents. Dependents may be dropped by written request at any time. 7. Retirees shall pay all required contributions to the City by the 15th of the month of coverage. One annual statement will be mailed to retirees for selection of payment plan: annual, bi-annual, quarterly or monthly. Failure to pay the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. Payment delayed beyond 60 days will initiate COBRA notification for continuation of health coverage once the member is terminated from the Plan. IX. RETIREE MEDICAL COVERAGE Exhibit A 9 A Retiree Medical Coverage 1. The following persons are eligible for retiree medical coverage: A. Present retirees of the City of La Porte receiving retirement annuities as a qualified annuitant under the Texas Municipal Retirement System. who have retired in accordance with the City of La Porte Employee Policies Handbook: and were employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte. excel)t for those with 30 years or more tenure with the City of La Porte. If an eml)lovee works 30 years or more with the City of La Porte they may maintain the City of La Porte sl)onsored health I)lan as secondary. which workina for a new eml)lover offerina a health I)lan ol)tion. All al)l)/icable costs of the I)lan will still apl)lv. In the case of Retirees that are reemployed by a new employer. and who subseQuently retire from the new employer. a one time deferral shall be allowed whereby the retiree may reioin the City of La Porte health plan as a retiree participant. reaardless of aQe. If a Qualifyina retiree carried a spouse as a dependant at the time of their initial retirement. a retiree who reioins the City of La Porte health plan as a retiree participant under the one time deferral may include their spouse as a dependant. consistent with allowances made under Federal COBRA law. Retirees who are self-employed are eligible for medical coverage. but occupational illnesses or iniuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. B. City employees who retire from the City of La Porte employment on or before December 31,2005, as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete at least 10 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement. Retirees re-employed after retirement from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte. If an employee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary, which working for a new employer offering a health plan option. All applicable costs of the plan will still apply. In the case of Retirees that are reemployed by a new employer, and who subsequently retire from the new employer, a one time deferral shall be allowed whereby the retiree may rejoin the City of La Porte health plan as a retiree participant, regardless of age. If a qualifying retiree carried a spouse as a dependant at the time of their initial retirement, a retiree who rejoins the City of La Porte health plan as retiree participant under the one time deferral may include their spouse as a dependant, consistent with allowances made under Federal COBRA law. Retirees who are self-employed are eligible for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on current active employee/dependent rates. C. City emplovees who retire from City of La Porte emolovment on or after January 01. 2006 and (1) who have a combination of years of service with the City of La Porte. olus age. totaling 80: and (2) who retire as a qualified annuitant under the Texas Municipal Retirement System: who retire in accordance with the City of La Porte Emplovee Policies Handbook: who complete at least 20 years of service with the City of La Porte. and are currentlv emoloved bv the City of La Porte at the time of their retirement. Retirees re-emploved after retirement from the City of La Porte that have emolover sponsored health care coverage available through the new emolover may not continue health coverage with the City of La Porte. except for those with 30 years or more tenure with the City of La Porte. or for retirees re- emoloved with the City of La Porte. If an emplovee works 30 years or more with the City of La Porte they may maintain the City of La Porte sponsored health plan as secondary. while workina for a new emolover offerina a health olan ootion. In the case of Retirees that are reemoloved bv a new emolover. and who subseauentlv retire from the new emolover. a one time deferral shall be allowed whereby the retiree may re;oin the City of La Porte health olan as a retiree oarticioant. reaardless of aae. If a aualifyina retiree carried a soouse as a dependant at the time of their initial retirement. a retiree who reioins the City of La Porte health plan as retiree oarticioant under the one time deferral may include their soouse as a deoendant. consistent with allowances made under Federal COBRA law. All aoolicable costs of the Plan will still applY. For those retirees who are self- employed. occuDational illnesses or iniuries shall not be covered. Annual contributions by retirees to the health plan will be based on a cost schedule determined by years of service. as established under Section 5. "Premiums". of this chaDter. D. City employees meeting the eligibility requirements for (1) disability retirement under the Texas Municipal Retirement System Act and (2) have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuous years at the time of disability determination. Costs associated with retirement under this tier shall be 75% of the city cost. 2. The retiree and dependent coverage will be primary for those participants not yet qualified for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligible. The Retiree and dependant coverage will be secondary for Retirees with 30 or more years tenure with the City of La Porte, who have employer sponsored health coverage available through their new employer, or for retirees reemployed with the City of La Porte, as hereinabove provided. If a covered retiree dies, dependents may continue coverage until the earlier of the date the surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried children financially dependent upon the covered retiree is 25 years of age. Surviving dependents shall pay the appropriate contribution toward dependent coverage as established in this chapter.:. 3. Retirees who work for another employer offering health coverage shall not be eligible for retiree health coverage from the City after their subsequent employment ends, regardless of the length of service with the subsequent employer. 4. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 5. Premiums: The City of La Porte utilizes a self-funded medical plan so there are no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. The Total Plan Cost is the Total annual dollar allocated each year by budget as approved by City Council for the City of La Porte for Health Insurance for each employee, including employee and employer contributions. Costs to the retiree. retiring on or after January 01. 2006. shall be based on a cost schedule determined bv years of service. outlined below. Under this schedule. a retiree oavs a oercentaae of the city's Total Plan Cost based on years of service. but pays the entire cost of deoendant coverage. regardless of years of service. At least 20 years of service At least 21 years of service At least 22 years of service At least 23 years of service At least 24 years of service At least 25 years of service At least 26 years of service At least 27 years of service At least 28 years of service At least 29 years of service At least 30 years of service Retiree pays 60% of city cost + Deoendent premiums Retiree pays 55% of city cost + Dependent oremiums Retiree oavs 50% of city cost + Dependent premiums Retiree pays 45% of city cost + Dependent premiums Retiree oavs 40% of city cost + Dependent premiums Retiree oavs 35% of city cost + Dependent oremiums Retiree oavs 30% of city cost + Deoendent oremiums Retiree pays 25% of city cost + Dependent premiums Retiree oavs 20% of city cost + Dependent premiums Retiree pays 15% of city cost + Dependent premiums Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your lawful spouse who is legallv married to and living with you: natural children: stepchildren: children who. before reaching the age of 18. are either adooted bv you: or other children for whom yOU have care. custody and control under court decree. A dependent child must be unmarried and relv on yOU for primary suooort and maintenance. Dependent children remain eligible until age 25. 6. Retirees may not add dependents once retired. There are no qualifving events to add dependents. Dependents may be drooped bv written request at any time. 7. Retirees shall pay all reauired contributions to the City bv the 15th of the month of coverage. One annual statement will be mailed to retirees for selection of oavment plan: annual. bi-annual. auarterlv or monthlv. Failure to pav the required contribution will result in termination of the member's participation in the City of La Porte sponsored health plan. Payment delaved beyond 60 days will initiate COBRA notification for continuation of health coverage once the member is terminated from the Plan. Page I of2 Feazelle, Debra From: Clark T. Askins [ctaskins@swbell.net] Sent: Tuesday, October 03,2006 1 :42 PM To: Feazelle, Debra Subject: Health Plan Ordinance Ms. Feazelle: Below is excerpt from retiree health plan, from Section 9A of employee handbook, that we spoke of earlier. In italics are the changes made per Council direction on the 25th, and my review of the minutes. <!--[if !supportLists]-->1. <!--[endif]-->Premiums: The City of La Porte utilizes a self-funded medical plan so there are no formal premiums paid for health coverage. Each year, during the budget process, an amount is determined for each employee to cover claims and administration of the medical fund. The Total Plan Cost is the Total annual dollar allocated each year by Budget as approved by City Council for the City of La Porte for Health Insurance for each employee, including employee and employer contributions. Costs to the retiree, retiring on or after January 0 I, 2006, shall be based on a cost schedule determined by years of service, outlined below. Under this schedule, a retiree pays a percentage of the city's Total Plan Cost based on years of service, but pays the entire cost of dependent coverage, regardless of years of service. At least 20 years of service Retiree pays 60% of city cost + Dependent premiums At least 21 years of service Retiree pays 55% of city cost + Dependent premiums At least 22 years of service Retiree pays 50% of city cost + Dependent premiums At least 23 years of service Retiree pays 45% of city cost + Dependent premiums 10/312006 Page 2 of2 At least 24 years of service Retiree pays 40% of city cost + Dependent premiums At least 25 years of service Retiree pays 35% of city cost + Dependent premiums At least 26 years of service Retiree pays 30% of city cost + Dependent premiums At least 27 years of service Retiree pays 25% of city cost + Dependent premiums At least 28 years of service Retiree pays 20% of city cost + Dependent premiums At least 29 years of service Retiree pays 15% of city cost + Dependent premiums At least 30 years of service Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your lawful spouse who is legally married to and living with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by you; or other children for whom you have care, custody and control under court decree. A dependent child must be unmarried and rely on you for primary support and maintenance. Dependent children remain eligible until age 25. 10/3/2006 B -eHRH, Hilb Rogal & Hobbs 1155 Dairy Ashford, Suite 350 P.O. Box 941709 (77094-8709) Houston, Texas 77079-3012 281 -531-4455 800-964-6564 hilb rogal & hobbs TO: Debra Feazelle FROM: Neal Welch Kathy Clark cc: Robert Swanagan DATE: September 28,2006 RE: Health Plan Exhibits As a result of the questions from Council and your request, we are forwarding pages from the 1 72 Board packet. 1. Pages 9 and lOa - 10d address the over/under 65 rating for retirees if each group stood on their own from a claims standpoint versus active employees. This recommendation was not made by the 172 Board. 2. Pages 10e and 1 Of address the concept of new hires paying 20% more than current active plan participants. This exercise anticipated some freezing of current plan participant contributions. The 172 Board also did not recommend this course of action. Kathy and I hope to finish three premium illustrations for you today showing 1) Retiree rates frozen at today's contribution levels, 2) Revised active rates with a special subsidy to support the retirees, 3) The currently proposed 2007 rates blending both groups, and a model of the retiree rate calculator, which we did not get to explain or illustrate at the last Council Meeting. Please call us if you have any questions or need additional illustrations. Attachment: 172 Board Illustrations 7/14/06 c:\documents and settings\lanclosm\local settings\temporary internet files\memo debra feazelle 09-28-06 172 illustrations.doc > ~ .0 .c >< w ....... Q) Q) ..c 00 ~ L... o S Q) c t 0 0:;:::; a.. ::J ..c CO 'C ...I....... '+- C o 0 >.U ~"O U C CO E ::J E Q) L... a.. -Ie 00 ....... c Q) "0 C CO Q) oc.. o Q) NO ...-"0 ~ffi CO 00 ::J Q) C Q) CO L... ....,:;:::; Q) ~o:: :;:::;I.C) U(O Q) Q) :t:0') We:{ L... Q) "0 C :) c '- 0 ~~:;:; o ::J _.0 E~ UJ 0 U ~ E ~ .2 co ~ ..... 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Humana Flexible Spending Accounts Spouse Eligibility Dependent Eligibility Average Cost for Employee, Dependent, Child Plan Design Flexibility 2. Deferred Retiree Coverage 3. 2007 and 2008 Projections (Actives) 4. 2007 and 2008 Projections (Retirees) 5. New Hire Premium 6. Employee Recruitment Incentives 1 tHRH . h il b r 0 g d & hOD b s" Flexible Spending Accounts (FSAs) "OBlEM lOtn' t · Humana can administer a Flexible Spending Account internally · The cost is $5.50 per employee per month 2 tHRH . hilb rogal I:. ,oDbs" Spouse Eligibility 'Ion" SOlm.' t Maintenance of Benefit (MOB), Spouse Surcharge, Other Benefit Eligibility · Humana cannot administer MOB · The City of LaPorte can monitor spouse coverage available through their employment. · Those that have access to other coverage and choose not to utilize it, would be charged a higher premium. · Are there any other disincentives the City could impose on spouses to encourage them to elect coverage with their employer? · Individual child premium load. 3 tHRH . hilb rogal & hobbs" Dependent Child Eligibility "08ll' SO"," t The City of LaPorte can choose from the following for dependent child(ren) over the age of 19: · Dependent child(ren) covered to age 19 or age 23 if a full-time student · Dependent child(ren) covered to age 19 or age 25 if a full-time student · Verification would be requested two times per year · 172 Legal Review for dependent children of common-law spouses · Grandchildren 4 tHRH . hilb rogal /) hobbs' Average Cost for Employee, Spouse and Child "08lE' !Olm" t 2005/2006 Cost per Type of Participant Employee/Retiree - $3,430 per year - $286 claim cost/ mo + $32 fixed cost = $318 Spouse - $5,704 per year - $476 claim cost/mo + $32 fixed cost = $508 Child - $ 1,132 per year - $94 claim cost/ mo + $32 fixed cost = $ 126 5 tHRH . hilb regd & hebbs" Deferred Retiree Coverage """" 5OLm" t · Delay under 65 eligibility · GASB 45 concern · One-time deferral · Plan currently supporting post- retirement coverage at other employers · Premium the same (future calculator) · Would require Council action 6 tHRH . hilb rogal /', hoobs' 2007 and 2008 Projections (Actives) , RO Bl" 10 '" D.' t · Exhibit I - 2007 and 2008 Plan Projections · Exhibit II - Current employer contribution + current employee contribution + employee differential totaling anticipated plan cost at 112.5% · Exhibit III - Current employer contribution + proposed 2008 employee contributions to anticipated plan cost · Exhibit IV - New employer contribution for 2008 with 75%/25% split 7 tHRH . hdb ragal & hobbs' 2007 and 2008 Projections (Actives) "OH" SOlm." t Exhibit I · Using midpoint calculations (at 6/06) for total plan expenses (112.5%) · Expected Claims - $2,659,777 · No trend due to plan design offset (4 plans) · 112.5% = $2,992.249 · Fixed Expense (stop loss, admin) = $348,000 · Total Plan Cost 1 11/07 - 12/31/07 = $3,340,249 · Total Plan Cost 1/1/08 - 12/31/08 = $3,596,629 - 8% Medical Trend, 5% Admin Trend at 112.5% · Assumed no plan design changes or migration 8 tHRH t h i I b r 0 g a I I; 1 0 D b s" 2007 and 2008 Projections (Retirees) "00'" ,,,no" t · Exhibit V - Retiree (over/under 65) calculation (from 1 st Quarter report) · Exhibit VI - 2007 current employer contribution + under 65 calculation at 163% · Exhibit VII - 2007 current employer contribution + over 65 calculation at 84% · Exhibit VIII - 2008 current employer contribution + under 65 calculation at 163% · Exhibit IX - 2008 current employer cost + over 65 calculation at 84% 9 tHRH t hilb fogal & ho~bf Retiree (Over/Under 65) Calculation t Retiree Cost Exhibit V To further refine plan contributions by capturing active versus retiree healthcare costs, Humana was asked to retrospectively abstract plan participants into three classifications (actives, retirees over 65 and retirees under 65). This report was made available last week and includes retrospective capture of claims by these three groups. What we have learned is as follows for the experience period 3/2005 to 3/2006. Units Members Claims $ Cost PMPM Active 326 849 $2,414,610 $237.00 Retiree Under 65 30 62 $286,709 $385.36 Retiree over 65 18 33 $ 79,004 $199.50 374 944 $2,780,323 $245.43 *Keep in mind that the membership has increased during the year. Actual cost PMPM as shown here reflects the entire year. (Members include employees and individual dependents; these are actual persons in the plan). This exercise leads to a discussion of how retiree versus active rates should be calculated. In the past, the claims experience for the entire group was the basis for calculation. With one years data now captured, it is feasible to set separate rates for each category. We can project rates based on the cost PMPM using a simple multiple or load factor. The more difficult task is to project what the effect of that type of premium change would have on participation. With the advent of GASB-45 it is reasonable to assume that the actuarial study will focus on the actual health cost of the retiree population and how that cost is projected on a downstream (future) basis. (GASB-45 actuarial services proposal will be provided to Cynthia in the first week of April). If we are to review the above PMPM cost and project premiums for retirees in an exact multiple of active cost the factors would be: Active = X Retiree under 65 = X + 63% Retiree over 65 = X - 16% Since the City can utilize actual retiree cost as a basis for calculating retiree rates, it is therefore reasonable to propose the following illustrations (Exhibit 5). A fixed expense load for administration and stop loss of $30.72 will be added to each rate. Exhibit 6 is the retiree claims and participation data from Humana. 10 tHRH t hilb raga! & haobs" Recruitment Incentive 'RO"" SOe"'" t 1. Year to Year Plan - Two years retrospective credit for each one year of active service at City of LaPorte 2. % Credit - Some percentage (i. e., 50%) of prior services years plus service at City of LaPorte attached to qualification for retiree health 11 tHRH . nilb rog,l & hobbs" . i~ ~ i. ~:: J: ! ~j O:~ - s: ns .5 ~ (.) .... o Q) 0.. >- I- >- .c - I/) o (.) ns .~ 't' Q) ~ ';fe. - ., o u c!- '::!2. ';fl. eft. ;f!. ~ ~ t'--: I"-: q It') 01 C"l 0 0 "Q" ("t'),.... 0 J!! ., o u 5 o I- ,...... (0 ,.... 0 ('t) ,...... v v ,.... r--.. 01 It') '<t 0 a5a5ocOtO <DOCO..- r-.... C'I{~~~ ~ ........ .... >- U III E III .r: D. CJ)(J)O)NO) co..... 01 N co ooo""""~ ~ CJ:i 01' CJ:i It') COC)MEA-N ,.... EA- tR- M .... .... ~ .. a> ~"C 0- .:; e D. V<OCOQ CX) ('l') ("') <0 E;.I7 ('l') "< o. co, '<t '<t C"lCD ~ c.o ,.... ,.... (j) EA- W. 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Q) 0:: c Page 1 of 1 Feazelle, Debra From: Swanagan, Robert Sent: Thursday, September 28,20063:55 PM To: Feazelle, Debra; Dolby, Michael Subject: FW: Retiree Health Plan Issue FYI, Robert Swanagan From: Clark T. Askins [mailto:ctaskins@swbell.net] Sent: Thursday, September 28, 20063:41 PM To: Swanagan,Robert Subject: Retiree Health Plan Issue Robert: Under Chapter 9 (Retiree Medical Coverage) of the Employee handbook, Section 9A, paragraph D, provision is made for health benefits to employees who retire under cause of disability. This section was added to the city health plan when Section (A was passed by Council in October of 2004. This part of our policy does in fact presently confer retiree health benefits on qualifying employees, so long as they 1) qualify for disability retirement under TMRS; 2) have been declared permanently disabled under the Social Security Act, and have elected to receive Medicare Parts A and B, and 3) have worked for the City for 10 continuous years. My thought is that this section scopes out, in general, a disability related retiree health plan that may be what Council has in mind, but it has been around for 2 years and Council may want to look at it for possible changes. The TMRS and Social Security language was simply to provide an objective standard so that CLP didn't have to make call on what constitutes disability. This, along with the 10 year requirement, can be amended, should Council desire. Finally, this section says "Costs associated with retirement under this tier shall be 75% of the city cost" (emphasis added). In light of discussion at 9/25 council meeting over properly defining / clarifying what retiree and dependents costs are relative to the plan costs, this language might need to be refined. Clark 9/28/2006 D Swanagan, Robert From: Sent: To: Subject: Gillett, Martha Friday, September 29, 2006 2:41 PM Swanagan, Robert; Feazelle, Debra; Joerns, John Question Mr. Beasley requested me to em ail you this question: He would like to see this answered at the next Council meeting. If an employee has 80 points and has worked 30 years that they pay the same amount as an active/current employee. What would the cost be? Wouldn't it result in cost savings since the employee would stay at La Porte longer and not go to work for another employer. Martha A. Gillett, TRMG,CMC City Secretary/PubJic Information ODicer City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 281-471-5020ext.5019 1 COUNCILMEMBER BEASLEY'S QUESTION An employee considering retirement has thirty (30) years with the City and age combined with service time equal 80 points. The employee's calculated retiree insurance cost for his PPO $500 with discount is $58.94. However, as a current active employee his cost is $50.23. Question #1: Why is he paying $8.71 more as a retiree than he is paying as an active employee? $58. 94 Retiree cost only $50.23 Active Employee Cost 8.71 Difference Cost between Retiree and Active As a current Active employee his Total Insurance Cost for employee and spouse is $165.74 per Month. The employee's calculated retiree Total Insurance Cost for employee and spouse is 264.55. Question #2: Why is he paying 98.81 more as a retiree than he is paying as an active employee? When employee retires from the City he is no longer entitled to the fund subsidy of$168 per month ($39.18 subsidy employee only + $129.28 fund subsidy for employee & spouse) paid by the City. SEE ATTACHED PREMIUM AND CONTRIBUTION SCHEDULE C EFFECTIVE JANUARY 1, 2006 Councilmember Beasley's Comments: I thought our idea/intent was that a retiree would never pay more than an active employee for insurance. Sunday, October 08, 2006 Mayor Porter and fellow Council Members: I will be unable to attend the council meeting October 9, due to work commitments. However, I hope we will re-evaluate the medical benefit costs for employees retiring with 30 years service and 80 points. It was my understanding that costs for employees retiring early (for example - with 20 or 25 years) would be more than that of active employees. However, I thought employees waiting until 30 years and 80 points would be paying the same amount as active employees. I feel that offering this option would encourage employees to remain working for the city longer, rather than taking an early retirement. I asked Robert (in Human Resources) to put together something for us to consider which would include this option. Thank you for your consideration. - Barry Beasley Retiree Summary Report Name DOB: - 'f: .. . . I '" ge: 56 Years 6 Mos. Date of Employment: 10-01-76 Years of Service City of La Porte: 29 Yrs 11 Mos. Years Service TMRS: 37 Years 10 Mos. Question # 1 What is my cost if I retire after 12-31-06. You must meet 2 tests. 1. Years service + age must =80 2. Years service to City must ~ 20 Years Your cost will be City Cost Monthly (less Discount) plus Dependent Premiums (if any) If you qualify, then cost reductions are determined by premiums in Section 5. (see B) Points Calculations: 1. Age Service Total Points 56 Years 6 Mos. 29 Years 11 Mos. 86 Years 5 Mos. 1. Years service + age = 86 Years 5 Mos. You do meet the requirement. 2. Service to La Porte 29 Years 11 Mos. You do meet the 20 years requirement Per the table, you would fall into the 15% discount provision at City cost per each year as calculated by budget dollars. Question # 1 What is my Premium Cost if I retire now? You are enrolled in the PPO $500 Deductible Shown on table C. This is based on current Cost. (for 2006) Total Cost for your plan = $589.41 Retiree: $589.41 X 15% = $88.41 *Based on at least 29 years of service Spouse Coverage $795.02 -$589.41 = $205.61 Premium = $88.41 + $205.61 = $294.02 Per Month This price is subject to annual budget approved cost but the calculation formula should remain consistent unless changed by City Council. 9-18-06 (\ m-4 3 S. 't:l1e. 0)> ~ ~ !t~ mOl 3 - "2.~ o ~ '< Q. ~S" ..ce ~ -I o - !!t s: o ~ - =- '<' "t1 c:: ~ Q. S" ce 'tJ -a mmmmO 3333.:... "2."2."2."2.W' 0000= ~~~~ = CDCDCDCDC OlOls:IDO!, aacn~c "t1 0 "8 51- II) ::r c:: - 3=en !2: -Q.CD CD '<'a ~ -a "'0 mmmmO 3333.:... '2.'2.'2."2.01 0000= ~~~~= CDCDCDCDC OlOls:IDo!! ~~ ~- Q.Q.cno<c ." 0'8 S-. Ol::rc:: - 3=en 5!: -Q.CD CD '<'; ~ (') o mmmm~ 3333; '2. '2.'2. '2.CC1 OOOOCD ~~~~ ~ CD CD CD CD .. OlOl~O';" aacn2,.. "TIo'8'<b Ol ::r c:: = 3=en = -Q.CD C .:J;:".., -.. CD CD ~ Cl. c n - s: .. (') o mmmm~ 3333; '2.~'2.'2.lQ OOOOCD ~'aS~~~ CD CD CD CD _ OlQ)s:lDO';" aacn2..... "TI 0 '8 '< U. 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The following persons are eliglole for retiree medical coverage: A Present retirees of the City of La Porte receiving retirement annuities . as a qualified ann~t under the Te~ Municipal Retiiement Syst~ who have retired in accordance with. the City of La Porte Employee Policies Handbook; and were employed by the City of La Porte at the ~e of their retirement Retirees re-emp}oyed after retirement from the City of La Porte that have employer sponsored health care coverage available tbrougb. the new employer may not continue health Coverage with the City of La Porte, ~xcept for those with-30 years or more tenure with the City of La Porte, or for retirees re-employed with .the City of La ;Porte. If an e~loyee works 30 years or more with the City of La Porte they may maintain the CitY of4 Porte sponsored health plan as secondary, while working for a new employer offering a health pIan option. All applicable costs of the Plan will still apply. Retirees who are self-employed are eligL'ble for medical coverage, but occupational illnesses or injuries shall not be covered. Annual contnoUtions by retirees to the health plan, will be based on current active employee/dependent.rates. B. City employees who retire from the City of La Porte employment on or befoJ:'e D~er 31, 2005, as a qualified annuitant under the Texas Municipal Retirement System; who retire in accordance with the City of La Porte Employee Policies Handbook; who complete atlea.st 10 yeats of service with the City of La Porte, and are cmrentIYemPloyed by the City of La Porte at the time of their retirement ~tirees re- employed after retirement from.the City of La Porte that have employer sponso~ health care Coverage available tlJrough the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or ;more tenure with the City of La Porte, or for retirees re-employed With the City of La Porte. if an einployee works 30 years or more with the City of La Porte they may m"ainrnin the City of La Porte sponsored health. plan as secondary, wb.q.e working for a. new employer offering a health plan option. All applicable costs of the PIan will still apply. Retirees who are self- ~loyed are eligible fot medical coverage, J?ut occupational illnesses or injnries shaIl not be covered. AnnnaIcon1no1itions by retirees to "" tb.~ health pIan will be based <:>n current active eioployee/depeoo.ent rates. C. City employees who retire from City of La Porte employment on or after January 01, 2006 and (1) who have a combination of years of service witll the City "of La Porte; plus age, totaling 80; and (2) who retire as a quaI.iEed annuitant lIDder the Texas Municipal Retirement h System; who retire in accordance 'with the City of La Porte Employee Policies H aT)nbook; who complete at least 20 years of service with the City of La Porte, and are currently employed by the City of La Porte at the time of their retirement Retirees re-employed after retirement . from the City of La Porte that have employer sponsored health care coverage available through the new employer may not continue health coverage with the City of La Porte, except for those with 30 years or more tenure with the City of La Porte, or for retirees re-employed with the City of La Porte. Ifan empl9yee works 30 years or more with the City of La Porte they may m~int~in the City of La Porte sponsored health plan as secondary, while working for a new employer offering a health plan option. All applicable costs of the Plan will still apply. ~or those retirees who are self-employed, occupational ~esses or injuries shall not be covered. Annual contributions by retirees to the health plan will be based on a rost schedule determined by years of semce, as established under Section 5, ''Premiums'', oftbis chapter. D. City employees meeting the eliglDility requirements for (1) disability . . retirement under the Texas Municipal Retirein~ System Act and (2) . have been declared pe1;ID3liently disabled under the Social Security Act, and have elected to receive Medicare, Parts A and B, shall be eliglole for medical bene~ts, wliich shall be secondary to Medicare benefits, provided they have worked for the City of La Porte for ten (10) continuoUs years at the time of disability deteTmination. Costs associated with retirement under this tier shall be 75% ofth~ city cost. 2. The retiree and dependent coverage will be primary for those participants not yet q~ed for Medicare. The coverage will be secondary for those retirees and retirees' dependents who are Medicare eligrole. The Retiree and dep~ci.ent coverage will be secondary for Retirees with 30. or more years tenure with the City of La Porte, who have employer sponsored health coverage available through their new employer, or for retirees re-employed with the City of La Porte, as hereinabove provided. If a covered retiree dies, dependents may continue coverage tintil the earlier of the date the surviving sp~useremarries, obtains.group insurance, orbecoD?-es entitled to Medicare, or imtil any nnmaTTied children :financially dependent upon the covered retiree is 25 years of age. SurViving dependents shall pay the appropriate contnoution towaro dependent coverage as established in this chapter~ 3. Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from the City. 4. Pren$.ms:.The City of La Porte utilizes a self-funded m~cal plan so there are no formal premiums paid for health coverage. Each year, during the bUdget.process, an amoUnt is determined for each employee to cover claims and administration of the medical fund. \, , ~ . ..~ ~ Costs to the r~tir. 'ee, retiring on or after January 01, 2006, shall be baSed on a cost schedule determined by years of service: At least 20 years of service Retiree pays 60% of city cost + Dependent premiums At least 21 years of service Retiree pays 55% of city cost + Dependent premiums At least 22 years of service Refuee pays 50% of city cost + Dependent premiums At least 23 years of service Retiree pays 45% of city cost + Dependent prepnums At least 24 years of service Retiree pays 40% of city cost + Dependent pri4niums At least 25 years of service Retiree pays 35% of city cost + DePendent premiums At least 26 years of service Retiree pays 30% of city cost + Deperu;ient premiums At least 27 years of service Retiree pays 25% of city cost + Dependent premiums At least 28 years of service Retiree pays 20% of city cost + Dependent premiums At least 29 years of service Retiree pays 15% of city cost . + Dependent premiums At least 30 years of service Retiree pays 10% of city cost + Dependent premiums Eligible dependents include: Your J.a:wful spouse who is legally married to and living-with you; natural children; stepchildren; children who, before reaching the age of 18, are either adopted by yoU; or other children for whom you h4ve care, custody and control under court d.ecr~. A dependent child must be nnmmTied and rely pn you for primary support and maintenance. Dependent children remain eliglble until age 25. . 5. Retirees may not add dependents once retired. There are no qualifying evei:1tS to add dependents. Depen.d.ents may be dropped by written request at any time. 6. Retirees shall pay all required contnbutionS to the City by the 15th of the month of coverage. One annu:al statement will be mailed to retirees for selection of payment plan; annual, bi-annual, quarterly or monthly. Failure to pay the required contrIbution will result in termTn='ftion of the member's participation in the City of La Porte sponsored health plai:1. ,Payment delayed beYond 60 days will initiate COBRA notification for continuation of health coverage once the member is t~ted from the PIan. E RECRUITMENT INCENTIVES Service time: 1: 1 Ratio prior years related work experience: City of La Porte experience 1:2 Ratio 1:3 Ratio This will be added to their service time to get them vested earlier than ten years. Minimum time worked must be 5 years before these incentives would kick in. Management Experience to Service Credits: 1--5 Years 5-10 Years 10-15 Years 15-20 Years 10 Service Credits 20 Service Credits 30 Service credits 40 Service Credits Age plus Service Credits to get to the Total of 80 Points EXAMPLE: John is 40 years old and comes to the city with 10-15 years of Management Experience he would get a total of 70 points towards the total of 80 points. This incentive would not available for anyone less that 40 years of age. PAY: No pay incentives 1. Increase the amount of the tier of life insurance provided. 2. If, the candidate does not need insurance package pay them the value or a portion of the amount allocated by the approved budget amount in the year they are hired. 3. Go to 5 year vesting 9-13-06 *** Place a heightened emphasis on 2 to 1 dollar match in Savings Plan NOTE: These materials were re-formatted on 10/4/06 to better address Council's request. Staff will be reviewing them with the consultant to ensure we have addressed Council's request. John Joerns F HRH@ Hilb Rogal & Hobbs 1155 Dairy Ashford, Suite 350 P.O. Box 941709 (77094-8709) Houston, Texas 77079-3012 281-531-4455 800-964-6564 hilb rogal & hobbs TO: Debra Feazelle FROM: Neal W. Welch DATE: October 4, 2006 RE: Health Plan Projections As requested by Council, we have enclosed what we understand to be the request to freeze retiree rates at 2006 levels and reflect the shortfall in Active calculation. Page 1 is the "blended" calculation (employees & retirees) that was provided to Council on September 25th. This calculation reflects the original employer contribution calculation plus 100% of the 2007 increase (15%) absorbed by the employer ($620.37). The employee contribution remained the same as 2006. Page 2 illustrates the 2006 Employer and Employee calculation for just the retiree population. (Grandfathering existing retirees) Page 3 illustrates 2007 Retiree calculation if there were two retiree rate schedules (before and after 1/1/2007). These rates include all costs minus the active rate subsidy for active participants. (Same level as blended) Page 4 illustrates the shortfall/subsidy created by freezing the retiree and active rates. The shortfall is described as a subsidy and must be absorbed by the employer or shared in the future with actives and retirees. Please feel free to call for any additional clarifications. 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CO---./COOl ~~~~ Co:"""w:""" CO...... 0<0 ff? ff? ff? ff? 0l0l0l0l 0l0l0l0l 0,0,0,0, 0l0l0l0l ff? ff? ff? ff? ---./---./---./Ol <OOl---./Ol -.,J-lr.-l.~ :"""o,CoN OlWOOl ff? ff? ff? ff? 0l0l0l0l 0l0l0l0l 0,0,0,0, 0l0l0l0l ff? ff? ff? ff? --.J---./---./Ol OlW~Ol NOlOlOl NCoo,N 0l00l...... -I Cil Ql N :J:Jo 0.0.0 --.J (/);;0)> c Po. () 0- -. ~ en Cil <' c: CD CD '< -0-1 -0 Ql ~ :J !l!.. ON o 0 en 0 ~ ---./ REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested October 9,2006 Requested By: Mayor Alton E. Porter Appropriation Source of Funds: n/a Department: Ma~'Qr'~ Office Account Number: n/a Report: Resolution: Ordinance: x Amount Budgeted: n/a Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION City Council to approve appointing positions on Boards and Commissions for vacant slots. Chapter 172 Employee, Retiree Insurance and Benefits Board: Citizen Position 2 - Term Expiration 8/31/2006 - vacated by Tina Fregia due to resignation. Citizen Position I - Term Expiration 8/31/2007 - vacated by Pat Rothermel Alternate Position 2 - No Term Expiration - position has never been filled La Porte Development Corporation Board - 4b Corporation Deborah Johnson - Term Expiration 2007 - resigned from board position vacant Youth Advisory Council Crystal Scott advised there will be no changes to the Youth Advisory Council until after school begins in the fall. Advise staff if any other changes regarding positions Council desires. Action Required bv Council: Consider approving Ordinance appointing members to various Boards and Commissions and adopt the ordinance of choice regarding the Zoning Board of Adjustment Chairman. JOJ,.$~b Date I I -:r-fe vY1 f lit lie 4 ORDINANCE NO. 2004-2782-N AN ORDINANCE APPOINTING MEMBERS TO VARIOUS BOARDS, COMMISSIONS, AND COMMITTEES, OF THE CITY OF LA PORTE; PROVIDING A SEVERABILITY CLAUSE; CONTAINING A REPEALING 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: . Indicates reappointment Section 1. The City Council of the City of La Porte hereby makes the following appointments to the Airport Advisory Board for the City of La Porte Municipal Airport, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1. - Debra Rihn Position 2 . - Nick Hooke Position 3. - *Hector Villarreal Position 4. - * Tucker Grant Position 5. - Steve Gillett Position 6. - Eliminated by City Council on 7/13/98 by Ord. 98-2265 2007 2007 2009 2009 2007 FAA Representative William Gray No Term Airline Representative - Dan Myhaver No Term Section 2. The City Council of the City of La Porte hereby makes the following appointments to the Board of Directors of the City of La Porte Reinvestment Zone Number One, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Peggy Antone 2007 Position 2 * Da ve Turnquist 2008 Position 3 Alton Porter 2007 Position 4 *Horace Leopard 2008 Position 5 Doug Martin 2007 Position 6 *J.J. Meza 2008 Position 8 *Chester Pool 2008 The City Council of the City of La Porte hereby ratifies the following appointments by La Porte Independent School District and Harris County: Position 7 Dr. Say (LPISD) 2007 Position 9 Lindsay Pfeiffer (Harris Co.) 2007 Section 3. The City Council of the City of La Porte hereby makes the following appointments to the Chapter 172 Employee Retiree Insurance and Benefi ts Commi ttee, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Citizen Position 1 Citizen Position 2 Retiree Participant - Employee Participant- Finance Staff H.R. Staff Legal Staff Alternate to Citizen Positions 1 and 2 Vacant 2007 Vacant 2009 Buddy Jacobs 2008 Karen Beerman No Term Michael Dolby No Term Robert Swanagan No Term Clark T. Askins No Term George Van Dyke No Term Vacant No Term Section 4. The City Council of the City of La Porte hereby makes the following appointments to the Fiscal Affairs Committee, 2 without term, or until their successors shall have been duly appointed and qualified: Date Appointed Chairman Chuck Engelken 1998 Corrunittee Member - Barry Beasley 2004 Corrunittee Member - Howard Ebow 1998 Alternate Member - Louis Rigby 2004 Alternate Membe r - Torruny Moser 2004 Section 5. The City Council of the City of La Porte hereby makes the following appointments to the Fire Code Review Board of the City of La Porte, for terms expiring on August 31st of the their successors shall have been duly year indicated, or until appointed and qualified: District 1 District 2 District 3 District 4 District 5 District 6 Tim Bird 2008 *Jeff Brown 2009 *Woodrow Sebesta 2009 *Floyd Craft 2009 Jim Bridge 2006 Lester Clark 2008 *Bryan Moore 2009 Paul Vige 2008 *Lynn Green 2009 At Large-A At Large-B Mayor Section 6. The City Council of the City of La Porte hereby makes the following appointments to the La Porte Area Water Authority, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: 3 Position 1 Robert Roy 2007 Position 2 Dennis H. Steger 2007 Position 3 Steve Valarius 2007 Position 4 *Chester Pool 2008 Position 5 * Pa ul Berner 2008 Section 7. The City Council of the City of La Porte hereby appoints the following named persons, all of whom are residents of the City of La Porte, and no more than four of whom are elected ci ty officials or city employees, to serve as directors of the City of La Porte Development Corporation without compensation, but with reimbursement for actual expenses, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Chuck Engelken 2007 *Mike Clausen 2008 Tommy Moser 2007 *Bill Love 2008 Ed Matuszak 2007 *Pat Muston 2008 Vacant 2007 Section 8. The City Council of the City of La Porte hereby makes the following appointments to the La Porte Health Authority, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Health Authority Abdul R. Moosa, M.D. 2008 Alternate Robert D. Johnston, M.D. 2008 Medical Advisor/EMS Oscar Boultinghouse Contract 4 Peggy Antone 2007 * Dave Turnquist 2008 Alton Porter 2007 *Horace Leopard 2008 Douglas Martin 2007 *J.J. Meza 2008 Dr. Say 2007 *Chester Pool 2008 Lindsay R. Pfeiffer, Chairman 2007 The City Council of the City of La Porte hereby makes the following appointments to the Main Street District Committee, an "ad hoc" committee, without term, or until their successors shall have been duly appointed and qualified: Position 1 Bill Manning, Chairman No Term Position 2 Robert Schlenk, Vice Chairman No Term Position 3 Deborah Johnson No Term Position 4 Douglas Martin No Term Position 5 Vicki Campise No Term Position 6 Paul Berner No Term Section 9. The City Council of the City of La Porte hereby makes the following appointments to the La Porte Redevelopment Authority, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Position 2 Position 3 Position 4 Position 5 Position 6 Position 7 Position 8 Position 9 Section 10. Position 7 Position 8 Position 9 Pat Muston Gloria Lair Brenda Brown No Term No Term No Term 5 Section 11. The City Council of the City of La Porte hereby makes the following appointments to the Main Street Advisory Board, a new Board required by the Texas Historical Commission, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position l- Ed Matuszak 2008 Position 2- Vicki Campise, Chair 2008 Position 3- Bill Manning Jr. 2008 Position 4- Leandro Suarez 2009 Position 5- *Jerry Carpenter, Vice Chair 2009 Position 6- Amanda Seymore 2009 Position 7- Michaelyn Dunaway 2007 Position 8- Clare Zaborowski Sec./Treasurer 2007 Position 9- Lawrence McNeal 2007 Position 10 Position 10 eliminated by Ordinance 2004-2782- L on August 28th, 2006, by City Council Action Position 11 Position 11 eliminated by Ordinance 2004-2782- L on August 28th, 2006, by City Council Action There are also three (3) Ex Officio members of this Board: 1 the City of La Porte's Main Street Coordinator 2 the City Manager of the City of La Porte, or her designee 3 the Manager of the La Porte-Bayshore Chamber of Commerce Section 12. The City Council of the City of La Porte hereby makes the following appointments to the City of La Porte Planning and Zoning Commission, for terms expiring on August 31st of the 6 year indicated, or until appointed and qualified: Chairman their successors shall have been duly *Pat Muston 2009 Doretta Finch 2008 *Nick Barrera 2009 *Kirby Linscombe , Jr. 2009 Dottie Kaminiski 2007 Paul Berner 2007 Claude Meharg 2008 Hal Lawler 2007 Les Bird 2008 The City Council of the City of La Porte hereby makes the following appointments to the Southeast Texas Housing Finance Corporation Board of Directors, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Director *Patricia Muston District 1 District 2 District 3 District 4 District 5 District 6 Alternate 1 Alternate 2 Section 13. 2009 Section 14. The City Council of the City of La Porte hereby makes the following appointments to the Youth Advisory Council, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Shelby Barnett 2005 Position 2 Hiba Haroon 2005 Position 3 Chaise J. Merritt 2005 Position 4 Laura J. Low 2005 Position 5 Amanda Gass 2005 Position 6 Brandy C. Hickey 2005 7 Position 7 Clemea J. Donaldson 2005 Position 8 Brandon C. Lunsford 2005 Position 9 Pierre N. Castillo 2005 Position 10 LaSadra M. Hillman 2005 Position 11 Margo R. Curette 2005 Position 12 Marc R. Vanderbrink 2005 Position 13 Carol Parmer 2005 Position 14 Mia Parisi 2005 Position 15 Taylor Ryan Rowan 2005 Position 16 Ashley N. Weddle 2005 Section 15. The City Council of the City of La Porte hereby makes the following appointments to the Zoning Board of Adjustment, for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Sidney Grant 2007 Position 2 Bob Capen 2007 Position 3 Rod Rothermel 2007 Position 4 Charles Schoppe 2007 Position 5 George (Bill) W. Maltsberger 2007 Alternate 1 *Lawrence McNeal 2008 Alternate 2 *Gilbert Montemayor 2008 Section 16. The City Council of the City of La Porte hereby appoints the following named persons, all of whom are resident electors of the City of La Porte or non-resident individuals owning or operating a business within the City of La Porte, duly verified by proof of an applicable tax statement or utility 8 account for such business, and each of whom the City Council deems competent to serve on such Board by virtue of their experience and training in matters pertaining to building construction, and none of whom are employed by the City of La Porte, to serve as members of the Building Codes Appeals Board for terms expiring on August 31st of the year indicated, or until their successors shall have been duly appointed and qualified: Position 1 Tom Campbell, Chairman 2007 Position 2 Terry Bunch, Vice Chairman 2007 Position 3 Paul Larson 2007 Position 4 Ron Holt 2007 Position 5 Ken Schlather 2007 Position 6 John Elfstrom 2007 Position 7 Bruce Compton 2007 Section 17. The City Council of the City of La Porte hereby makes the following appointment to the Fire Fighters Pension Board of Trustees, to serve without term or until his successor shall have been duly appointed and qualified: City Council Representative *John Joerns 2007 Section 18. If any section, sentence, phrase, clause or any part of any section, sentence, phrase, or clause, of this ordinance shall, for any reasons, 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, 9 sentence, phrase or clause, or part thereof, may be declared invalid. Section 19. All ordinances or parts of ordinances in conflict herewith are repealed to the extent of such conflict only. Section 20. 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 21. This Ordinance shall be effective from and after its passage and approval,' and it is so ordered. PASSED AND APPROVED, this 9 TH day of October,2006. CITY OF LA PORTE By: Alton E. Porter Mayor ATTEST: Martha A. Gillett City Secretary 10 APPROVED: Clark T. Askins Assistant City Attorney 11 Back-up not required for this item ~ ~-- e CenterPoint. Energy Lynette Sealy ., Compliance & Standardization Southern Gas Operations e CenterPoint. Energy Charles Sybert Operations Supervisor CenterPoint Energy "..- e CenterPoint. Energy Randall Sanders Area Manager Texas City/Baytown Gas Operations 4615 Navigation Houston, TX 77011 713967 8026 Fax: 713 923 9794 Cellular: 832 435 3334 Direct: #726 Iynette.sealy@ CenterPointEnergy.com 4514 Baytown Central Blvd Baytown, TX 77521 281 422 6656 Pager: 713 B86 0127 Fax: 281 420 8081 Cellular: 713-539-7433 charles.sybert@ CenterPointEnergy.com 411 Hwy 146 Texas City, TX 77590 409 945 3927 Pager: 713 720 1186 Fax: 409 945 2642 Cellular: 832-256-7307 Randall.X.Sanders@ CenterPoi ntE nergy .com . Cen/erPoint Energy ~- Mayor and City Council City of La Porte La Porte, Texas Ladies and Gentlemen: For many years, CenterPoint Energy Resources Corp. ("CenterPoint Energy" or the "Company") has provided the City of La Porte with dependable natural gas service. By this Statement of Intent, CenterPoint Energy is requesting a revision to its schedule of Miscellaneous Service Charges currently in effect. The Company has not changed its Miscellaneous Service Charges since 1976. The Miscellaneous Service Charges proposed by the Company have already been reviewed and approved by the Railroad Commission for use in other cities in Texas and are currently in effect in the cities and environs served by the Company in its Beaumont/East Texas Division, South Texas Division and Houston Division. The proposed changes in Miscellaneous Service Charges will only affect those customers using these services. In addition, the Company proposes limited changes to the Purchased Gas Adjustment ("PGA") clause in its current gas service rate schedules to permit financial transactions that will reduce the effect of swings in the market price of natural gas. The proposed changes in the PGA clause will affect all Residential, Small Commercial, and Large Volume customers. - Accordingly, CenterPoint Energy files this Statement of Intent with attached Residential Rate Schedule R-2054-1, Small Commercial Rate Schedule SC-2054-1, and Large Volume Rate Schedule Rate Schedule No. 599. Each of these Rate Schedules include the proposed changes to the Purchased Gas Adjustment clause and Miscellaneous Service Charges Rate Schedule MISC-6, which includes changes to the fees charged for certain services. For your convenience, the revisions proposed in this filing are shown in italics on the attached rate schedules. The changes to the Purchased Gas Adjustment clause should not affect the level of gas cost currently recovered in the rates in your city, but the additional language does facilitate financial transactions not contemplated in the existing clause. The expected effect of these revisions is to increase the annual revenues of the Company in La Porte by approximately $79,696 per year. The proposed revisions will increase the aggregate of the Company's revenues by less than two and one-half percent and, therefore, do not constitute a "major change" as this term is defined in Section 104.101 of the Texas Utilities Code. CenterPoint Energy serves approximately 7,687 residential customers, 383 small commercial customers and 16 large volume customers in the City of La Porte. The proposed revisions will not increase the average monthly bill for natural gas service to any customer class. The fees are proposed to become effective for service rendered on and after November 3, 2006. For your convenience, we have also attached a copy of the Public Notice of Intent to Increase Rates that is being published pursuant to the requirements of TEX. UIlL. CODE ~104.103. Page 2 No action on the City's part is required to permit these proposed rates and changes to become effective on November 3, 2006. If you desire any additional information concerning these rates and changes, we will be available at any time to discuss them with you. Very truly yours, 7r Scott Prochazka Division Vice President, Regional Operations DELIVERED TO: tmflhCl b; lIe tt NAME (Print) the City of La Porte on thisX#ctay of (] , C) rfl. OFFICE, Mayor, City Secretary, e c.) , of <" ).rJ Di P v},\ ty> y', 2006. I L1]j() ~ 0/ 77 I '.. .It {[ c! \[{lj~ SIGNATURE CENTERPOINT ENERGY ENTEX RATE SHEET RESIDENTIAL SERVICE RATE SCHEDULE NO. R-2054-1 APPLICATION OF SCHEDULE This schedule is applicable to consumers receiving gas for uses usual in a home through a single meter serving a single family dwelling and its related structures. Natural gas supplied hereunder is for the individual use of the customer at one point of delivery and shall not be resold or shared with others. NET MONTHLY RATE First Next Next Next Over 400 cubic feet or less 2,600 cubic feet 3,000 cubic feet 10,000 cubic feet 16,000 cubic feet $11.98 + $.37662 per 100 cubic feet .49962 per 100 cubic feet .48662 per 100 cubic feet .46662 per 100 cubic feet .43162 per 100 cubic feet $.42562 per 100 cubic feet of gas over 6,000 cubic feet in each of the billing months of May through October, inclusive. MINIMUM MONTHLY BILL $11.98 PA YMENT ---- The above net monthly rates will apply to all bills paid by date indicated on bill. For bills not paid by indicated date, gross rates shall apply, which rates shall be the above net rates plus ten percent (10%), not to exceed $3.00. PURCHASED GAS ADJUSTMENT PROVISION The above net monthly rate per unit sold is predicated upon a price of gas purchased for resale hereunder of $3.8311 per Md. To the extent that CENTER POINT ENERGY ENTEX's (hereinafter referred to as "Company") price of gas to be purchased (adjusted to correct any prior variations from actual costs) for resale hereunder increases or decreases, said net monthly rate shall be adjusted up or down to reflect (i) changes in such cost of gas per unit sold and (ii) changes in gross receipts taxes resulting from such increases or decreases in the net monthly rate. For purposes of calculating said adjustment, it shall be proper for Company to determine its cost of gas from its several suppliers and the gross receipts taxes to be paid on the basis of a logical geographical area. The cost of natural gas shall include the cost of gas supplies purchased for resale hereunder, upstream transportation charges, storage charges, the cost of gas withdrawn from storage less the cost of gas injected into storage, any transaction-related fees, gains or losses and other transaction costs associated with the various financial instruments used by CenterPoint Entex to stabilize prices. If Company receives any refunds of any increased cost of purchased gas that have been passed on under this provision, a refund shall be made to consumers served by this rate schedule. CENTERPOINT ENERGY ENTEX RATE SHEET RESIDENTIAL SERVICE RATE SCHEDULE NO. R-2054-1 COST OF SERVICE ADJUSTMENT PROVISION Annually, effective with all bills rendered after May 1, 1981, the above net monthly rate shall be adjusted upward or downward for increases or decreases in the cost of providing gas service (including depreciation but excluding cost of gas, gross receipts taxes, income taxes and return) for the previous year ended December 31 above or below such cost incurred in the second prior calendar year. These annual adjustments shall be cumulative. The operating expenses used in this computation shall be those reported to the Railroad Commission of Texas in the annual report of Company. A computation shall be made of the amount of such increase or decrease applicable to each customer in the Texas Coast Division, and the net monthly rate set forth above shall be adjusted upward or downward to reflect such change in the cost of providing gas service. All adjustments that become applicable pursuant to the terms of the foregoing paragraph shall become effective only after thirty days prior written notice to the Regulatory Authority of the approximate amount of the proposed adjustment and such proposed adjustment shall not become effective if disapproved by action of the Regulatory Authority during such 30 day period. Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations. CENTERPOINT ENERGY ENTEX RATE SHEET COMMERCIAL SERVICE RATE SCHEDULE NO. SC-2054-1 APPLICA nON OF SCHEDULE This schedule is applicable to consumers using gas for purposes other than residential whose consumption in any month is less than 150,000 cubic feet. When a customer uses in excess of 150,000 cubic feet in any month, the consumer shall be billed on the applicable large volume rate schedule. Natural gas supplied hereunder is for the individual use of the customer at one point of delivery and shall not be resold or shared with others. NET MONTHLY RATE First Next Next Next Over 400 cubic feet or less 8,600 cubic feet 11,000 cubic feet 10,000 cubic feet 30,000 cubic feet $12.48 + $.37662 per 100 cubic feet .50962 per 100 cubic feet .48662 per 100 cubic feet .45162 per 100 cubic feet .43662 per 100 cubic feet MINIMUM MONTHLY BILL $12.48 PAYMENT The above net monthly rates will apply to all bills paid by date indicated on bill. For bills not paid by indicated date, gross rates shall apply, which rates shall be the above net rates plus ten percent (10%), not to exceed $5.00. ,i.- PURCHASED GAS ADJUSTMENT PROVISION The above net monthly rate per unit sold is predicated upon a price of gas purchased for resale hereunder of $3.8311 per Met. To the extent that CENTERPOINT ENERGY ENTEX's (hereinafter referred to as "Company") price of gas to be purchased (adjusted to correct any prior variations from actual costs) for resale hereunder increases or decreases, said net monthly rate shall be adjusted up or down to reflect (i) changes in such cost of gas per unit sold and (ii) changes in gross receipts taxes resulting from such increases or decreases in the net monthly rate. For purposes of calculating said adjustment, it shall be proper for Company to determine its cost of gas from its several suppliers and the gross receipts taxes to be paid on the basis of a logical geographical area. The cost of natural gas shall include the cost of gas supplies purchased for resale hereunder, upstream transportation charges, storage charges, the cost of gas withdrawn from storage less the cost of gas injected into storage, any transaction-related fees, gains or losses and other transaction costs associated with the various financial instruments used by CenterPoint Entex to stabilize prices. If Company receives any refunds of any increased cost of purchased gas that have been passed on under this provision, a refund shall be made to consumers served by this rate schedule. CENTERPOINT ENERGY ENTEX RATE SHEET COMMERCIAL SERVICE RATE SCHEDULE NO. SC-2054-1 COST OF SERVICE ADJUSTMENT PROVISION Annually, effective with all bills rendered after May 1, 1981, the above net monthly rate shall be adjusted upward or downward for increases or decreases in the cost of providing gas service (including depreciation but excluding cost of gas, gross receipts taxes, income taxes and return) for the previous year ended December 31 above or below such cost incurred in the second prior calendar year. These annual adjustments shall be cumulative. The operating expenses used in this computation shall be those reported to the Railroad Commission of Texas in the annual report of Company. A computation shall be made of the amount of such increase or decrease applicable to each customer in the Texas Coast Division, and the net monthly rate set forth above shall be adjusted upward or downward to reflect such change in the cost of providing gas service. All adjustments that become applicable pursuant to the terms of the foregoing paragraph shall become effective only after thirty days prior written notice to the Regulatory Authority of the approximate amount of the proposed adjustment and such proposed adjustment shall not become effective if disapproved by action of the Regulatory Authority during such 30 day period. Service under this schedule shall be furnished in accordance with the Company's General Rules and Regulations. CENTERPOINT ENERGY ENTEX NA TURAL GAS SERVICE RA TE SCHEDULE NO. 599 A V AILABILITY This schedule is available at points on existing facilities of adequate capacity and suitable pressure in the area designated in the Texas Rate Book of CENTERPOINT ENERGY ENTEX (hereinafter called "Company"). APPLICA TION This schedule is applicable to any Consumer for commercial uses and industrial uses, except standby service, who uses over 150,000 cubic feet in anyone month. Gas supplied hereunder is for the individual use of the Consumer at one point of delivery and shall not be resold or shared with others. If the Consumer has a written contract with Company, the terms and provisions of such contract shall be controlling. NET MONTHLY RATE The net monthly charge for gas delivered under this rate schedule shall be determined as follows: First 150 Mcf per billing month at the net rates established from time to time in the customer's service area for commercial service by applicable city ordinance or order of the Railroad Conunission of Texas or by the Company. Next All Over 850 Mcf @ 1,000 Mcf @ $1.606 per Mcf 1.513 per Mcf .- MONTHLY MINIMUM The minimum monthly bill shall be that established from time to time for commercial service by city ordinance or order of the Railroad Commission of Texas or by the Company, as appropriate, for customer service area. ADJUSTMENTS TO RATE SCHEDULE Subject to the limitations herein, the Net Monthly Rate for gas supplied under this rate schedule in excess of 150,000 cubic feet in any month shall from time to time be adjusted either plus or minus to reflect the sum of the following adjustments: (A) COST OF GAS ADJUSTMENT The Net Monthly Rate for gas supplied hereunder is based upon the average rate paid by Company to United Texas Transmission Company and by Houston Natural Gas Company to Houston Pipe Line Company in the month of December 1974, for gas purchased for resale and delivery to Consumers under this rate schedule. The Net Monthly Rate for consumption in excess of 150 Mcf during a billing month shall be adjusted when the rate paid by CENTERPOINT ENERGY ENTEX is increased or decreased above the base cost of gas. Such adjustment shall be computed utilizing the "Natural Gas Cost Adjustment Factor". The cost of natural gas shall include the cost of gas supplies purchased for resale hereunder, upstream transportation charges, storage charges, the cost of gas withdrawn from storage less the cost of gas injected into storage, any transaction-related fees, gains or losses and other transaction costs associated with the various financial instruments used by CenterPoint Entex to stabilize prices. The Natural Gas Cost Adjustment Factor for the current month shall be calculated according to the following formula: CENTERPOINT ENERGY ENTEX NA TURAL GAS SERVICE RA TE SCHEDULE NO. 599 ADJUSTMENTS TO RATE SCHEDULE cont'd. G-CF Natural Cost Adjustment Factor == M - $.9732 per Mcf .96 The Natural Gas Cost Adjustment Factor shall be rounded to the nearest $0.0001 per Mcf. (A) COST OF GAS ADJUSTMENT cont'd. DEFINITIONS G == Cost of natural gas estimated to be purchased for resale by the Company to customers under this rate schedule for the current month as recorded in the Company's accounts which are equivalent to accounts 800 through 804, inclusive of NARUC Uniform System of Accounts. M == All Mcf of natural gas estimated to be sold and recorded in the current month by the Company to customers under this rate schedule. K == The average rate paid by Company to United Texas Transmission Company and by Houston Natural Gas Company to Houston Pipe Line Company in the month of December 1974, for gas purchased for resale and delivery to Consumers under this rate schedule expressed in dollars per Mcf. CF == A Correction Factor adjustment to be applied in the current month to provide for an allowance due to variance between actual and estimated Natural Gas Cost Adjustment revenues derived from the Natural Gas Cost Adjustment Factor for the third preceding month prior to the current month. CF == (A) - (B) x (.96) where (A) is the actual Natural Gas Cost Adjustment revenues received from the Natural Gas Cost Adjustment Factor applied in the third preceding month and (B) is the Natural Gas cost Adjustment revenues which would have been received from the application of the Natural Gas Cost Adjustment Factor in the third preceding month if actual rather than estimated Natural Gas Cost and Mcf sales (described above) had been available to calculate the Natural Gas cost Adjustment Factor for that month. (B) TAX ADJUSTMENT In addition to the payments above provided for, the Consumer shall reimburse the Company for the Company's proportionate part of any new or increased rate of any existing tax, impost, assessment or charge or subsequently applicable taxes except ad valorem, net income and excess profits taxes, imposed or levied by any governmental authority as the result of any new or amended law or ordinance enacted after January l, 1980, which is assessed or levied against the Company or directly affects the Company's cost of operation or is added to or made a part of the cost of gas purchased by the Company. For the purpose of determining the reimbursement herein to be made by the consumer in respect to said taxes paid by the Company on the gas delivered hereunder, all taxes paid by any subsidiary or affiliate of the Company shall be considered to have been paid by the Company. CENTERPOINT ENERGY ENTEX NA TURAL GAS SERVICE RA TE SCHEDULE NO. 599 WRITTEN CONTRACT In order to receive a delivery from Company of more than 25 Mcf during anyone day, a consumer must execute a written contract with Company on Company's form of contract covering the sale of gas by Company to it. In the case of existing consumers, the maximum gas usage during anyone day shall be obtained from the records of the Company, except in cases where the existing consumer will be purchasing increased volumes of gas from Company because of expansions or for any other reason, in which event the Company may estimate usage by such consumer. Also in the case of new consumers, the Company may estimate usage by the consumer. Any such estimates made by Company shall be binding on consumer in determining whether or not a contract is required. Such written contract shall be executed by consumer upon request of Company and Company shall not be obligated to serve any such consumer more than 25 Mcf during anyone day until such written contract is executed and delivered by Consumer. Any change in the Net Monthly Rate shall be in accordance with the applicable contract provisions. MEASUREMENT The term "cubic foot of gas" for the purpose of measurement of the gas delivered and for all other purposes is the amount of gas necessary to fill a cubic foot of space when the gas is at an absolute pressure of 14.65 pounds per square inch and at a base temperature of sixty (60) degrees Fahrenheit. The term "Mcf' shall mean I ,000 cubic feet of gas. ....- The Sales Unit shall be one Mcf. Assumed Atmospheric Pressure - The average atmospheric pressure shall be assumed to be fourteen and seven- tenths (14.7) pounds per square inch, irrespective of actual elevation or location of the point of delivery above sea level or variation in such atmospheric pressure from time to time. Orifice Meters - When orifice meters are used for the measurement of gas, such orifice meters shall be constructed and installed, and the computations of volume made, in accordance with the provisions of Gas Measurement Committee Report No.3 of the American Gas Association as revised September, 1969, with any subsequent amendments or revisions which may be mutually acceptable. The temperature of the gas shall be determined by a recording thermometer so installed that it may record the temperature of the gas flowing through the meter or meters. The average of the record to the nearest one (1) degree Fahrenheit, obtained while gas is being delivered, shall be the applicable flowing gas temperature for the period under consideration. The specific gravity of the gas shall be determined by a recording gravitometer owned and operated by the pipeline company from whom Company purchases its gas, so installed that it may record the specific gravity of the gas flowing through the meter or meters; provided, however, that the results of spot tests made by the pipeline company with a standard type specific gravity instrument shall be used at locations where the pipeline company does not have a recording gravitometer in service. If the recording gravitometer is used, the average of the record to the nearest one-thousandth (0.00l), obtained while gas is being delivered, shall be the applicable specific gravity of the gas for the period under consideration. If the spot test method is used, the specific gravity of the gas delivered hereunder shall be determined once monthly, the result obtained, to the nearest one-thousandth (0.00l), to be applicable during the succeeding billing month. CENTERPOINT ENERGY ENTEX NA TURAL GAS SERVICE RA TE SCHEDULE NO. 599 MEASUREMENT cont'd. Adjustment for the effect of supercompressibility shall be made according to the provisions of A.G.A. Report No. 3, hereinabove identified, for the average conditions of pressure, flowing temperature and specific gravity at which the gas was measured during the period under consideration, and with the proportionate value of each carbon dioxide and nitrogen in the gas delivered included in the computation of the applicable supercompressibility factors. Company shall obtain appropriate carbon dioxide and nitrogen fraction values as may be required from time to time. Positive Displacement Meters and Turbine Meters - When positive displacement meters and/or turbine meters are used for the measurement of gas, the flowing temperature of the gas metered shall be assumed to be sixty (60) degrees Fahrenheit, and no correction shall be made for any variation therefrom; provided however, that company shall have the option of installing a recording thermometer, and if company exercises such option, corrections shall be made for each degree variation in the applicable flowing temperature for the period under consideration. The volumes of gas determined shall be adjusted for the effect of supercompressibility as follows: (A) When the flowing temperature of gas is assumed to be sixty (60) degrees Fahrenheit, the supercompressibility factor shall be the square of the factor, Fpv, computed in accordance with the principles of the American Gas Association Gas Measurement Committee Report No.3, hereinabove identified, for a pure hydrocarbon gas of six-tenths (0.6) specific gravity and for the average pressure at which the gas was measured. (B) When the flowing gas temperature is recorded and applied according to the option above, the supercompressibility factor shall be the square of the factor, Fpv, computed in accordance with the principles of the American Gas Association Gas Measurement Committee Report No.3, hereinabove identified, for a pure hydrocarbon gas of six-tenths (0.6) specific gravity and for the average conditions of pressure and flowing temperature at which the gas was measured. TERMS OF PAYMENT The gross monthly bill shall be due and payable from any customer who fails to pay his bill within ten (10) days from the date of the bill. To arrive at the gross monthly bill, the net bilI computed at the above net monthly rates, together with applicable cost of gas and tax adjustments, will be increased by 2%. For a bilI showing consumption of 150,000 cubic feet or less, the bill will be adjusted and payable as prescribed by prompt payment provisions in an applicable city ordinance or order of the Railroad Commission of Texas or by the Company. RULES AND REGULA nONS Gas Service furnished hereunder shall be subject to the Company's Rules and Regulations for the sale of gas. CURT AILMENT Total or partial interruption of gas deliveries due to act of God, the elements, requirements for residential and other uses declared superior to Consumer's by law, or to other causes or contingencies beyond the control of Company or not proximately caused by Company's negligence, shall not be the basis for claims-delivery and receipt of gas to be resumed whenever any such cause or contingency shall end. CENTERPOINT ENERGY ENTEX NA TURAL GAS SERVICE RA TE SCHEDULE NO. 599 CHARGES FOR UNAUTHORIZED OVER-RUN GAS Any gas taken during any day by Consumer which exceeds the maximum daily quantity specified in Consumer's contract with Company shall be considered to be unauthorized over-run gas. Any gas taken by Consumer after the effective hour of an order calling for a complete curtailment of all gas deliveries, and prior to the authorized resumption of natural gas service, hereunder shall be considered to be unauthorized over-run gas. Any gas taken by Consumer after the effective hour of an order calling for a partial curtailment, and prior to the authorized resumption of natural gas service, which exceeds the stated amount of gas deliveries Consumer may take during such partial curtailment, shall be considered to be unauthorized over-run gas. Company shall bill, and Consumer shall pay for unauthorized over-run gas at the rate of $10.00 per Mcf, in addition to the Net Monthly Rate specified herein for such gas; provided, however, that company shall have the right without obligation, to waive any penalty for unauthorized over- run volumes. The payment of such additional charge for unauthorized over-run gas shall not, under any circumstances, be considered as giving the Consumer the right to take unauthorized over-run gas, nor shall such payment be considered to exclude or limit any other remedies available to Company against the Consumer for exceeding the maximum daily quantity specified in Consumer's contract with Company, or for failure to comply with curtailment orders issued by Company hereunder. The additional amount specified above charged for unauthorized over-run gas shall be adjusted, either plus or minus, to conform to the change made by Company's supplier in its rate schedule under which Company purchases its gas supply for resale under this schedule. - CENTERPOINT ENERGY ENTEX RATE SHEET SCHEDULE OF MISCELLANEOUS SERVICE CHARGES RATE SCHEDULE NO. MISC-6 GAS SERVICE I. Institution of service to residential or general service $40 2. Restore service after termination for non-payment, cut-off by customer or agent, or for convenience of customer $40 3. Turning off service to active meter - account not finalled (per trip) $20 4. Special meter test at customer's request (see General Rules and Regulations for special situations) $15 5. Change customer meter $55 6. Change residential meter location: Minimum charge $350 Additional meters in manifold each $55 (Plus cost of materials) 7. Tap Charge N.c. * 8. Installation of remote read device where company cannot get access to read meter $180 9. Disconnect service at main $300 (Plus any costs arising out of any city ordinance or regulation governing work in city streets) /0. Restore service at main after termination for non-payment $300 11. (Plus cost ofmaterials) Temporary transfer of individually metered multi-family service from vacating tenant to apartment complex owner. (Applicable to read and transfer transactions only. Precedent written agreement required. ) N.c. *Except where Company is required to pay tap charge to pipeline supplier to serve the consumer, the consumer shall reimburse Company. OTHER CHARGES /2. Collection call - trip charge $20 13. Returned check $20 DEPOSITS Up to the maximum amount allowed under the Railroad Commission of Texas Quality of Service Rule *7.45(5)(C)(ii) (the "one-sixth rule"). If there in no billing history on the customer's account, then the one-sixth rule will be applied to the customer's account based on similarly-situated customers located in the geographic area. EFFECTIVE DATE November 3, 2006 PUBLIC NOTICE OF INTENT TO INCREASE RATES To the Customers of CenterPoint Energy Resources Corp. ("CenterPoint Energy") in the City of La Porte, located within CenterPoint Energy's Texas Coast Division. Pursuant to the notice requirements of TEX. UTIL. CODE S 104.103, CenterPoint Energy hereby gives this notice to the public that on September 29, 2006, it filed with the City of La Porte a Statement of Intent to Increase Rates for Miscellaneous Service Charges applicable to Residential, Small Commercial and Large Volume customers in the City of La Porte. The new Miscellaneous Service Charges are proposed to become effective on November 3, 2006. The Statement of Intent also proposes limited changes to the Purchased Gas Adjustment ("PGA") clause in the gas sales tariffs to accommodate transactions that will reduce the effect of swings in the market price of natural gas. CenterPoint Energy's current Miscellaneous Service Charges have been in effect since 1976. The Miscellaneous Service Charges proposed by the Company have already been reviewed and approved by the Railroad Commission for use in other cities in Texas and are currently in effect in the cities and environs served by the Company in its Beaumont/East Texas Division, South Texas Division and Houston Division. The current and proposed changes in Service Charges appear below: Current Proposed 1. Institution of service to residential or general service $5.00 $40.00 2. Restore service after termination for non-payment, cut-off by customer or agent, or for convenience of customer $5.00 $40.00 3. Turning off service to active meter - account not finalled (per trip) $5.00 $20.00 4. Special meter test at customer's request $10.00 $15.00 5. Change customer meter $55.00 6. Change residential meter location - minimum charge $50.00 $350.00 Additional meters in manifold - each $55.00 Plus cost of materials 7. Tap charge N.C. N.C. 8. Installation of remote read device where company cannot get $180.00 access to read meter 9. Disconnect service at main $300.00 10. Restore service at main after termination for non-payment $300.00 11. Temporary transfer of individually metered multi-family service N.C. N.C. from vacating tenant to apartment complex owner. (Applicable to read and transfer transactions only. Precedent written agreement required. ) 12. Collection call- trip charge $3.00 $20.00 13. Returned Check $3.00 $20.00 The effect of these proposed changes will generate approximately $79,696 of increased annual revenues for the Company in La Porte. For the twelve months ended June, 2006, the revenues of the Company in La Porte were $6,087,180. The effect of the proposed changes, therefore, represents approximately a 1.3% increase in annual revenues to CenterPoint Energy in La Porte. CenterPoint Energy services approximately 7,687 Residential Service customers, 383 Small Commercial customers, and 16 Large Volume customers in La Porte. The proposed change in the PGA clause will affect all of these customers. The proposed changes to the Miscellaneous Service Charges will affect only those Residential, Small Commercial, and Large Volume customers that utilize the offered services and do not constitute a "major change" in rates as that term is defined by TEX. UTIL. CODE ~ 104.101. None of the proposed changes will affect the base rates of current Residential, Small Commercial or Large Volume customers. A copy of the proposed changes may be inspected at the business office of CenterPoint Energy located at 1111 Louisiana, Houston, Texas, 77002, or at the offices of the city clerk of the City of La Porte. All persons interested in this matter may obtain information about these proposed changes by contacting CenterPoint Energy at the address shown below. Scott Prochazka Division Vice President, Regional Operations CenterPoint Energy 1301 Travis Houston, Texas 77002 B -- City of La Porte Interoffice Memorandum To: Mayor and City Council Date: October 3, 2006 ager From: John Joems, Assistant Subject: Bond Election in May 2007 At the City Council Retreat in January 2006 staff presented Council with a potential list of CIP projects. Council directed staff to move forward with a May bond election at the retreat in April. In July 2006 Council discussed the possibility of moving some of the larger street projects proposed for the street maintenance sales tax fund to the proposed bond program. To do this Council will also need to prioritize the street maintenance list. Both lists (CIP & Street Maintenance) will be provided to City Council again this week under separate cover. Like the street maintenance list, the CIP project list will need to be prioritized. Attached is a proposed timeline for the upcoming bond election and from the 2001 bond election. Unlike the last bond election in 2001, where there was only a 90 day window, there is 6 months to prepare for the election. The timeline calls for City Council to appoint a bond committee at the October 23, City Council meeting. After appointment of the committee, staff will begin to aggressively prepare for the May 2007 election. 11 :cns Enclosure (2) c: Executive Staff Debra Brooks Feazelle } City (' . ..\1 Porte 2007 Bond ElectilJ.. .Proposed Timeline ) January 30, 2006 City Council Retreat - review list of potential projects April 8, 2006 City Council Retreat - select a date for the election August 17, 2006 Budget Workshop October 23,2006 Council recommends committee members Nov. 2006/Dec. 2006/January 2007 Staff works with City Manager on project list November 2006 -April 2007 Education Process Present draft pamphlet and synopsis to Executive Staff for review Staff prepares synopsis to include in committee letters Prepare meeting schedule for discussing election with community organizations Obtain voter rolls on CD ROM from County for mail out labels Pamphlet/synopsis to City Manager for final review before presenting to Council Send letters & synopsis from Mayor to bond committee members Send letter from Chairperson to local organizations soliciting donations and requesting donations be sent February 1, 2007 Council calls for Bond Election (90 days from election) Week of March 19, 2007 Committee/staff to prepare pamphlets to be mailed to citizens Week of April 2, 2007 Mail pamphlets to citizens AprillMay 2007 Early Voting May 2007 Election Day May 2007 Canvass Election June/July 2007 Meet with rating agencies August 2007 Sell a portion of bonds approved by voters (before budget) City of La Porte Bond Election Timeline November 9, 2001 Memorandum to Council regarding recommending committee members November 12,2001 Council calls for Bond Election Draft pamphlets and synopsis to City Manager for review November 15,2001 Present draft pamphlet and synopsis to Executive Staff for review November 19,2001 Staff prepares synopsis to include in committee letters November 19, 2001 Prepare meeting schedule for discussing election with community organizations to be scheduled in December/January Obtain voter rolls on CD ROM from County for mail out labels November 26, 2001 Pamphlet/synopsis to City Manager for final review before presenting to Council Dec. 10 December 3,2001 Send letters & synopsis from Mayor to bond committee members December 11, 2001 Meet with committee members to answer any questions & appoint a Chairperson December 13,2001 Send letter from Chairperson to local organizations soliciting donations and requesting donations be sent prior to January 7 Week of January 7 Committee/staff to prepare pamphlets to be mailed to citizens January II Mail pamphlets to citizens January 16-29 Early Voting February 2 Election Day February 5 Canvass Election March 2002-Apri12002 Meet with rating agencies May 2002-June 2002 Sell a portion of bonds approved by voters The attached agenda item was added 10/6/06 at 2:00 p.m. After editing the agenda the attached is # 12 (C). Thanks, ,"'- 8H City of La Porte Established 1892 October 9,2006 Harris County Commissioner's Court Through: The Honorable Judge Robert Eckels Harris County Administration Building 100 I Preston, Suite 900 Houston, Texas 77002-] 839 Re: Potential Funding for the Sylnn Beach Shoreline Protection and Beach Nourishment Project (TGLO Coastal Project #11 ]4) through the Harris County share, Coasta/lmpact Assistance Program Dear Commissioners and Judge Eckels: The staff of three Harris County coastal cities, La Porte, Shoreacres, and Seabrook; met with Judge Eckels on Wednesday, October 4th to discuss and impress upon our county representatives..the urgent need to fund three important environmental projects (one for each city) utilizing a portion of Harris County's share of offshore drilling revenues, authorized by the federal Energy Polic;y Act of 2005. While the Shoreaeres and Seabrook projects are in the dcvelopmental stage, the La Porte project has a complete design and U.S. Army Corps of Engineers Permit (#23069). The City of La Porte and Harris County Precinct Two have pursued tunding for this project through the Texas General Land Office CEPRA program as well as other funding sources for the past four years. This project is important for our community for t\VO significant reasons: a) to restore the Sylvan Beach Park "beach" that has eroded away over time due primarily to ship's wake from the Houston Ship Channel traffic, and b) to reduce the likelihood of future erosion by adding shoreline protection along the unprotected shoreline of this Hanis County park. Setting aside the need for a moment, there are two additional pressing reasons for consideration of this project: ]) the escalating construction costs have already added approximately $400,000 to the original cost estimate, and 2) the USACE pennit that was obtained in 2003, is set to expire in the third quarter of2008. If the permit expires, the project will require an extension and will have to meet any new USACE requirements that have been implemented since the initial pennit was issued, potentially adding to the eventual cost of completion. The cun"ent cost of construction ofthe entire project is now $2.8 million; however, it can be divided into phases. The City'ofLa Porte is again willing to work with Harris County and other potential partners to assist in funding for the project. The ClAP guidelines list as its primary objective, Page I of2 604 W. Fairmant Pkwy. · La Porte, Texas 77571 · (281) 471.5020 " "Projects and activitiesfor the conservation, protection, or restoration of coastal areas...". The Sylvan Beach Shoreline Protection and Beach Nourishment Project meets that criteria perfectly and would alIow Harris County to "put a project on the ground" with a portion of its share of its allocated 2007 ClAP funds. Sylvan Beach is a major economic as well as natural Texas treasure and we need to protect and nourish it for future generations. If this erosion protection and beach re-nourishment project is implemented, it will go a long way toward meeting that goal for Sylvan Beach. The undersigned members of the La Porte City Council trust that the information given will allow you to make a favorable decision; this project is too important to the citizens ofHanis County to allow it to languish. Thank you in advance for your consideration and please do not hesitate to contact the La Porte City staff should you have any questions or if further discussion is necessary. Staff can be reached at 281.470.7275 or by email atbarrs(CD.cLla-porte.tx.us Sincerely, ~l?~ Mayor Alton Porter J7 ~. cavA )1 fJJl cP~ ike Mosteit ~un~lm~~ Chuck EngeJk& Oi, riet 2 COM;",,~er 1'~.-0~CAJ Howard Ebow District 3 Counc'1member ~ Mi lausen Istrict 6 Councilmember ...~? ~--7-;'-C--__./ ---~---- . p-e{er Griffiths Councilmember At-Large District A ~/~/ Barry Beasley Councilmember At-Large District B c: Mike Jackson, Texas Senate District 14 John Davis, State Representative, District Page 2 01'2 .-