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
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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
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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
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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
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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
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: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-
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:fl\..lay,'rn {~.ht ~Qtt~/L
Title v
10 - lD - () ~
Date
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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
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City of Laporte
Friday, July 14, 2006
"oot" sotm' t
1. 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
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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
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Exbibit A
9 A Retiree Medical Coverage .
1. 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.
Attachments:
Premium Worksheets (1 - 4)
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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
.-