O-2008-3103 Letter Agreement with C. Berdon Lawrence; RE:sanitary sewer service

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City of La Porte August tc) , 2008 Page 2 through the Apartment Site for ingress and egress to the Lift Station, such easement being evidenced by instrument entitled "Ingress and Egress Right-of-Way to Lift Station Site" recorded under County Clerk's File No. D570819 in the Real Property Records of Harris County, Texas, and (ii) an easement of entry onto the Apartment Site, such easement being evidenced by instrument entitled "Easement" recorded under County Clerk's File No. D830770 in the Real Property Records of Harris County, Texas (collectively, the "Access Easements"). La Porte desires to cease the operation of the Lift Station and abandon the sanitary sewer lines in the Existing Sanitary Sewer Easements, in which event it will be necessary to make alternative arrangements for continued sanitary sewer service to the Residences. Lawrence desires to acquire the Lift Station Site and Lift Station from La Porte, remove the Lift Station and terminate the Existing Sanitary Sewer Easements and Access Easements but without affecting the Existing Water Line Easement and Existing Drainage Easement and the rights of La Porte relative thereto. In that connection, La Porte and Lawrence are entering into this Letter Agreement in order to provide for the following agreements: 1. Approval of City Council: Title to Lift Station Site. Promptly following the execution hereof, La Porte shall (i) submit this Letter Agreement to the La Porte City Council for approval and shall use diligence to obtain the approval of City Council as soon as practicable to this Letter Agreement and the transaction contemplated hereby, and (ii) promptly notify Lawrence in writing upon obtaining such approval of the City Council. Promptly following the execution hereof, Lawrence shall endeavor to obtain a title report or "nothing further" certificate (the "Title Report") covering the Lift Station Site issued by a title company, together with legible copies of all title exception documents affecting the Lift Station Site. Lawrence shall have the right to review and approve such Title Report and title exception documents. 2. Plans and Permitting for Alternate Sanitary Sewer Service. Promptly following such approval by the City Council of La Porte and notice thereof to Lawrence, Lawrence, at his expense, shall cause plans and specifications (the "Utility Plans") to be prepared by a registered professional engineer (the "Engineer") for utility lines, meters, grinding pumps, lift station and other facilities (the "Alternate Facilities") necessary to continue sanitary sewer service to the Residences without the need for the Lift Station at a cost acceptable to Lawrence. It is anticipated that the Alternate Facilities will be constructed and installed from the Residences through the Apartment Site and Bay Lots at locations determined by Lawrence to the south boundary of the Apartment Site or Bay Lots and then, from such south boundary line through the right of way of Crescent Drive (a publicly dedicated right of way pursuant to the map or plat of Crescent Shores Subdivision filed in Volume 8, Page 58 of the Map Records of Harris County, Texas) to the existing public sanitary sewer line located within the right of way of Crescent Drive, the location of which is generally depicted on Exhibit "A" attached hereto. Upon completion thereof, the Utility Plans shall be submitted to the Planning Department of the City of La Porte for approval and issuance of a building permit for the Alternate Facilities. 3. Installation of Alternate Sanitary Sewer Service. Upon approval of the Utility Plans by the Planning Department of the City of La Porte and issuance of a building permit for HOU:2702631.7