HomeMy WebLinkAboutO-1994-1994
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ORDINANCE NO. 94- 1994
AN ORDINANCE APPROVING AND AUTHORIZING AN OPTION AGREEMENT BETWEEN
THE CITY OF LA PORTE AND HAROLD P. PFEIFFER, FOR THE PURCHASE BY
THE CITY OF LA PORTE OF TWO TRACTS OF LAND FOR PUBLIC PURPOSES;
MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN
EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
section 1. The City Council hereby approves and authorizes
the contract, agreement, or other undertaking described in the
title of this ordinance, in substantially the form as shown in the
document which is attached hereto and incorporated herein by this
reference. The City Manager is hereby authorized to execute such
document and all related documents on behalf of the City of La
Porte. The City Secretary is hereby authorized to attest to all
such signatures and to affix the seal of the City to all such
documents.
section 2. The City Council officially finds, determines,
recites, and declares that a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was
posted at a place convenient to the public at the City Hall of the
Ci ty 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.
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ORDINANCE NO. 94-1994
PAGE 2
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this 8th day of August, 1994.
CITY OF LA PORTE
By:
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'N rman L: a 0 e,
Mayor
ATTEST:
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Sue Lenes,
City Secretary
AP6Z~
Knox W. ASkins,
City Attorney
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CITY OFtA PORTE
PHONE (7131 471.5020 . P. O. Box 1 115 . LA PoRTE. TEXAS 77572
copy
July 11, 1994
Mr. Harold P. Pfeiffer
619 Brownell
La Porte, TX 77571
Re: Tract One: Lots 1-5, both inclusive, in Sailor's Cove
Subdivision, a 2.209 acre tract, being a resubdivision of part
of Lot 18, W.B. Lowrance Subdivision, recorded in Volume 83,
Page 596, Harris County Deed Records - Beazley Homestead
Tract, according to the map or plat of said Sailor's Cove
Subdivision recorded April 6, 1994, under Harris County
Clerk's file No. P779441.
Tract Two: Lots 7 & 8, Bayshore Block, Bayshore Park
Subdivision, according to the map or plat thereof recorded in
Volume 10, Page 22, of the Map Records of Harris County,
Texas.
Dear Mr. Pfeiffer:
Please be advised that I have been authorized by the La Porte City
Council to negotiate the acquisition of the above-described
property which you own located on Bayshore Drive at Sea Breeze
Avenue.
On July 5, 1994, we met in my office and reached an agreement on
the acquisition. As I explained to you, the City of La Porte has
issued in 1994, substantially all of its $10,000,000.00 limit on
tax free obligations, under Internal Revenue Service regulations.
Therefore, the City of La Porte desires to obtain an option
agreement from you, for the purchase of the above described
property by the City of La Porte, with final closing in January,
1995. The points which follow will outline the critical elements
of our discussion:
1. The purchase price is $675,000.00.
2. You have agreed to finance this land acquisition if the note
can by prepared by the City in a manner that is structured as
a tax exempt instrument to the holder of the note.
3. Financing arrangement: Non-refundable option money to be paid
upon signing of mutually acceptable option agreement, which
option money shall be applied in its entirety to the purchase
price, if the City exercises its option to purchase on or
before January 31, 1995, $100,000.00.
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COpy
Mr. Harold P. Pfeiffer
July 11, 1994
Page 2
The principal amount of the promissory note at the time of
closing will be $575,000.00, with interest thereon at 4.5% per
annum. Principal and interest shall be payable annually
commencing August 10, 1995, and each August 10th thereafter
until the full principal balance and all interest due thereon
shall have been fully paid. The City of La Porte will reserve
the right to prepay any amount of principal and interest on
the promissory note, at any time, prior to maturity.
4. The subject property was appraised by Patricia stone Muston,
a state certified general real estate appraiser, on July 31,
1993, who placed a value of $795,000.00 on the property. The
City agrees to furnish you with a copy of this appraisal, and
to sign the necessary schedule for your use in claiming a
charitable deduction for federal income tax purposes, for the
difference between the sale price and the appraised price.
5. The City Attorney along with the City's Bond Counsel will
prepare all documents and legal instruments to insure this
transaction is structured for tax exempt purposes. The City
agrees to pay these legal fees. Our City Attorney is Knox W.
ASkins, and our Bond Counsel is Paul Martin with MCGinnis,
Lochridge & Kilgore, of San Antonio, Texas.
6. You will at your expense have your attorney, Phil Pfeiffer of
Fulbright and Jaworski, review all legal documents.
7. The City's attorney will prepare an opinion letter for the
city on the property acquisition, or, at the city's option,
will secure an owner's title policy, at the City'S expense.
8. The option agreement will be executed, and the City of La
Porte will pay the $100,000.00 option fee to you, within
thirty (30) days of July 11, 1994.
9. You will retain possession of the property, and be entitled
to all income, and be responsible for all expenses on the
property, until the date of final closing.
If the above nine points clearly and accurately reflect our
agreement reached on July 5, 1994, I would appreciate your signing
and returning to me, the extra copy of this letter, retaining the
original copy as your copy of the agreement between you and the
City of La Porte.
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Mr. Harold P. Pfeiffer
July 11, 1994
Page 3
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I wish to thank you for your cooperation in helping the ci ty
fulfill one of the goals called for within the City's Comprehensive
Plan and its Bay Front Master Plan. It has been a pleasure working
with you.
Sincerely,
CITY OF LA PORTE
By: 6(~l. ~
Robert T. Herrera
City Manager
ACCEPTED AND AGREED:
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cc: Hon. Mayor & City Council
Knox W. Askins, City Attorney
Jeff Litchfield, Director of Finance
Paul Martin, Bond Counsel
Phil Pfeiffer, Fulbright & Jaworski
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OPTI:ON AGREEMENT
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made and entered into by and between HAROLD P.
County, Texas, hereinafter called GRANTOR, and
CITY OF LA PORTE, a municipal corporation, of Harris county, Texas,
hereinafter called GRANTEE,
STATE OF TEXAS {
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COUNTY OF HARRIS {
This Agreement,
PFEIFFER, of Harris
W I: T N E SSE T H:
I.
For and in consideration of the sum of ONE HUNDRED THOUSAND
DOLLARS ($100,000.00) in cash to me in hand paid by CITY OF LA
PORTE, a municipal corporation, GRANTEE, of Harris County, Texas,
receipt of which is hereby acknowledged; I, HAROLD P. PFEIFFER,
GRANTOR, being the owner of the hereinafter described real property,
do hereby give and grant to the said GRANTEE, its successors and
assigns, an irrevocable option, effective until 12:00 o'clock Noon
on January 31, 1995, to purchase the hereinafter described property,
to-wit:
Tract One: Lots 1-5, both inclusive, in Sailor's Cove
Subdivision, a 2.209 acre tract, being a resubdivision of part
of Lot 18, W.B. Lowrance Subdivision, recorded in Volume 83,
Page 596, Harris County Deed Records - Beazley Homestead Tract,
according to the map or plat of said Sailor's Cove Subdivision
recorded April 6, 1994, under Harris County Clerk's file No.
P779441.
Tract Two: Lots 7 & 8, Bayshore Block, Bayshore Park
Subdivision, according to the map or plat thereof recorded in
Volume 10, Page 22, of the Map Records of Harris County, Texas.
II.
GRANTEE shall have the right, during the time set out in this
Option Agreement, to purchase the hereinabove described property for
the total sum of Six Hundred Seventy-five Thousand Dollars
($675,000.00), of which the Option Money paid hereunder shall be a
part.
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III.
It is represented by the GRANTOR that the subject properties
are free and clear of all restrictions, reservations, easements and
encroachments, except as shown on the plat of said subdivision.
IV.
This right, privilege and option to so purchase, according to
the terms and provisions of this Agreement, shall terminate at 12:00
o'clock Noon on January 31, 1995. In the event GRANTEE exercises
this option within the time allowed, by certified mail to GRANTOR,
addressed to Mr. HAROLD P. PFEIFFER, 619 Brownell, La Porte, Texas
77571, setting out that the option is exercised, then, in that
event, this purchase shall be concluded prior to January 31, 1995,
as set out herein.
V.
Upon closing of this transaction, GRANTOR agrees to furnish
GRANTEE, at GRANTEE's option and at GRANTEE's sole expense, at the
time of execution of GRANTOR's Deed, an Owner's Title Policy issued
by Sovereign Title Company, Deer Park, Texas, covering such
properties for the amount of the purchase price.
IV.
All taxes for the calendar year 1994 and prior years shall be
paid by GRANTOR. All taxes for the current year of closing shall be
prorated as of the date of closing. Possession of the property
shall be delivered to GRANTEE at the date of closing of the sale.
GRANTOR shall execute and deliver to GRANTEE a General Warranty
Deed, which deed shall contain covenants of general warranty,
conveying good and indefeasible title without exceptions of any
nature. GRANTEE shall pay for all usual and customary title
company expenses and other expenses in connection with the closing
of this transaction.
VII.
At closing, GRANTEE shall deliver to GRANTOR the following:
1) GRANTEE4It~romissory note in the S~_f $575,000.00, dated
the date of closing, bearing interest at the rate of 4.5% per annum;
payable in accordance with the amortization schedule attached hereto
as Exhibit "A", incorporated by reference herein, and made a part
hereof for all purposes. GRANTEE reserves the right to prepay any
amount of principal or interest on the promissory note, at any time,
without prepaYment penalty;
2) certified copy of the City of La Porte ordinance
authorizing the issuance of said promissory note, in form attached
hereto as Exhibit "B", incorporated by reference herein, and made a
part hereof for all purposes;
3) opinion letter from McGinnis, Lochridge & Kilgore, Bond
Counsel of San Antonio, Texas, in form attached hereto as Exhibit
"C", incorporated by reference herein, and made a part hereof for
all purposes.
VIII.
In the event GRANTEE does not exercise the right, privilege and
option herein granted to it, on or before 12:00 Noon, January 31,
1995, then all rights and privileges granted to it hereunder shall
automatically terminate and shall be of no force and effect and the
option money paid under this option agreement to GRANTOR shall be
forfeited to GRANTOR, and the GRANTEE shall have no further right to
such sum, and in such event both Parties hereto shall be released
from any and all further obligations hereunder.
IX.
In the event this Option is exercised and the GRANTOR is unable
to furnish to GRANTEE the owner's title policy provided for in
Paragraph V hereof, then in that event the option money, receipted
for herein, shall be returned to GRANTEE, and both parties shall be
released herefrom; except, that GRANTOR shall use his best efforts
to furnish such title policy, and GRANTEE may waive any objection,
if any, to the title, and close the transaction.
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In the even4ll~tle is good and the titl~~Olicy mentioned
herein may be furnished, and GRANTEE refuses to consummate the
purchase of the subject property under the terms and conditions
herein set out, then in that event GRANTOR shall have the right of
specific performance.
In the event title is good and the title policy mentioned
herein may be furnished, or in the event GRANTEE waives any
objection, and GRANTOR refuses to convey the subject property under
the terms and conditions herein set out, then in that event GRANTEE
shall have the right of specific performance.
X.
Each party certifies to the other party hereto, that there is
no real estate broker or agent involved in this transaction.
XI.
This contract embraces the full agreement between the Parties
hereto and no statement, remark, agreement or understanding, oral or
written, not contained herein, will be recognized or enforced.
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EXECUTED IN SEVERAL DUPLICATE ORIGINALS, this the 2-51:h day of J' d~
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~y, 1994.
GRAN'l'OR:
!{~t;;~-eF~F~
GRUTEE:
CITY OF LA PORTE
By:
G?~ 1: ~
ROBERT T. HERRERA
City Manager
COpy
STATE OF TEXAS e l
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COUNTY OF HARRIS (
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BEFORE ME, the undersigned, a Notary Public in and for said
County and State, on this day personally appeared HAROLD P.
PFEIFFER, known to me to be the person whose names is subscribed to
the foregoing instrument, and acknowledged to me that he executed
the same for the purposes and consideration therein expressed, and
in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF
)~L...to , 1994.
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OFFICE, this the ~ day of
~LU~
Notary Public, State of Texas
.i:~'f.,. SANCHA WENSE
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'..~..~.~., My CommJsslDn ExpIr. 08-24-97
STATE OF TEXAS {
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COUNTY OF HARRIS {
BEFORE ME, the undersigned, a Notary Public in and for said
County and State, on this day personally appeared ROBERT T. HERRERA,
City Manager of the CITY OF LA PORTE, known to me to be the person
whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and
consideration therein expressed, and in the capacity therein stated.
ICCCCCDCCCOOO~'~:OCOOCOC'COCOCOCCCD
"~:~'" CAROL BUTTLER I
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".'~" COMMISSION EXPIRES 0&-11-871
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A GIVEN UNDER MY HAND AND SEAL OF
UjOS1- , 1994.
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PROMISSORY HOTE
La Porte, Harris County, Texas
$575,000.00
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January 10, 1995
For value received, the CITY OF LA PORTE, TEXAS, a municipal
corporation and home rule city under the Constitution and laws of
the state of Texas (hereinafter "Maker"), promises to pay to the
order of HAROLD P. PFEIFFER (hereinafter "Payee"), Harris County,
Texas, the sum of FIVE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS
($575,000.00), in legal and lawful money of the United States of
America, with interest thereon from date hereof until maturity in
the amounts and at the times as set out below; matured unpaid
principal and interest shall bear interest at the maximum rate
permitted by law from date of maturity until paid. This note is
due and payable as follows, to-wit:
Payment
Date
Reduction
in
Principal
Payment
Amount
Interest
Amount
08/10/95 $111,480.07 $25,875.00 $85,605.07
08/10/96 111,480.07 22,022.77 89,457.30
08/10/97 111,480.07 17,977.19 93,482.88
08/10/98 111,480.07 13,790.46 97,689.61
08/10/99 111,480.07 9,394.43 102,085.64
08/10/00 111,480.07 4,800.58 106,679.50
Outstanding
Balance
$575,000.00
489,394.93
399,937.63
306,454.75
208,765.14
106,679.50
0.00
Maker agrees that during the full term hereof the maximum lawful
rate of interest for this note determined under Texas law shall be
the lesser of the rate calculated as described in Article 717k-2,
Vernon's Texas civil Statutes, as amended, or the Indicated Rate
(weekly) ceiling as Specified in Article 5069-1.04, Vernon's Texas
Civil Statues, as amended. Further, to the extent that any other
lawful rate exceeds the rate so determined then the higher ceiling
rate shall apply.
It is the intention of Maker and Payee to conform strictly to the
usury laws now in force in the State of Texas, except as superseded
by applicable Federal law. Accordingly, notwithstanding anything
to the contrary in this note or any other agreement entered into
in connection herewith, it is agreed as follows: (i) in the event
that the maturity of this note is accelerated by an election of
EXHIBIT A
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Payee resulting from an event of default under this note or any
agreement entered into in connection herewith, then earned interest
may never include more than the maximum amount permitted by law,
and any unearned interest included in the face of this note or
otherwise shall be cancelled automatically and, if theretofore
paid, shall be either refunded to Maker or credited on the
principal amount of this note; and (ii) the aggregate of all
interest and any other charges constituting interest under the laws
of the state of Texas and contracted for, chargeable or receivable
under this note or otherwise in connection with this loan
transaction shall under no circumstances exceed the maximum amount
of interest permitted by law, and any excess shall be deemed a
mistake and cancelled automatically and, if theretofore paid, shall
be either refunded to Maker or credited on the principal amount of
this note.
It is expressly provided that upon default in the punctual payment
of this note or any part thereof, principal or interest, as the
same shall become due and payable, the entire indebtedness secured
by the hereinafter mentioned lien shall be matured, at the option
of the holder; and in the event default is made in the prompt
payment of this note when due or declared due, and the same is
placed in the hands of an attorney for collection, or suit is
brought on same, or the same is collected through .Probate,
Bankruptcy or other judicial proceedings, then the makers agree and
promise to pay ten percent (10%) additional on the amount of
principal and interest then owing, as attorney's fees.
Each maker, surety and endorser of this note expressly waives all
notices, demands for payment, presentations for payment, notice of
intention to accelerate to maturity, protest and notice of protest,
as to this note and as to each, every and all installments thereof.
This note is issued pursuant to Ordinance No. 95-01 whereunder the
Maker authorized the levy of a continuing, direct, annual ad
valorem tax on taxable property within the City of La Porte, within
the limits prescribed by law, for each year while any part of the
note is considered outstanding, in sufficient amount to pay
interest on the note as it becomes due, to provide a sinking fund
for the payment of the principal of the note when due, and to pay
the expenses of assessing and collecting such tax. The ad valorem
taxes sufficient to provide for the payment of the interest on and
principal of the note, as such interest comes due and such
principal matures, are hereby pledged irrevocably for such payment,
within the limit prescribed by law.
IT IS HEREBY CERTIFIED AND RECITED that the issuance of this
note is duly authorized by law and that all acts, conditions, and
things required to be done precedent to and in connection with the
issuance of this note have been properly done and performed and
have happened in regular and due time, form, and manner as required
by the laws of the state of Texas.
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IN WITNESS WHEREOF, the City Council has caused this note to
be executed in its name by the manual signature of the Mayor of
the Ci ty , and the ci ty Secretary of the City of La Porte has
attested to the execution thereof on behalf of the City of La
Porte, and has affixed the City's seal thereto.
CITY OF LA PORTE
By:
Norman L. Malone
Mayor
ATTEST:
Sue Lenes
City Secretary
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ORDINUCE NO. 95-_
AN ORDINANCE ~IHDING THE NECESSITY ~OR THE ACQUISITION O~ CERTAIN
REAL PROPERTY ~OR PUBLIC PURPOSES; AUTHORIZING THB BXBRCISB O~
OPTION AGRBBKBN'l' DATED JULY 25, 1994, AND THB PURCHASE O~ SAID REAL
PROPERTY; AUTHORIZING THB ISSUANCB 01' THB CITY O~ LA PORTB'S
$575,000. 00 PROMISSORY NOTB; J'IHDING COMPLIANCE WITH THB OPEN
MBBTINGS LAW; PROVIDING AN BPPECTIVB DATE HBRBOJ'.
BB IT ORDAlnD BY THE CITY COUNCIL OJ' '1'11. CITY OJ' LA PORTB I
SBCTION 1. Tbe City council of tbe city of La Porte (tbe
"city") bas beretofore, by its ordiaance No. 94-_, passed aad
approved Auqus~ 8, 1994, au~bori.ed ~he city Manaqer of the City
of La Porte to enter into an option aqreement with Harole! P.
Pfeiffer, for tbe purchase of tbe real ~roperty in the city of La
Porte Texas, 1Il0re particularly described in said option aqreement,
to be' utili.ed by the city of La po~t. for public purposes (the
"property").
SECTION 2. The City Council hereby author:h:88 thA e.erciee of
the purchase option contained in said option agreement dated
, 1994, and the purchase of the Property on the term 0 and
conditions therein stated.
SECTION 3. The City Council,' as a portion of the
consideration to be paid for the purcha.e of the Property, and in
accordance in Article 717w, Vernon's Texas Civil Statutes, hereby
authorizes the execution and delivery ()f the City's promissory fiote
(the "Note") in form attached hereto a~ Bxhibit "A", incorporated
by reference herein, and made a part hereof for all purposed. Th*
Mayor of the City is authorized to eaocute the Note on behalf of .
the City, and the City Secretary ol the City is authoriztd to
attest the execution thereof on behalf of th~ City, and to a!fix
the City's seal thereto.
SECTION 4. The City Council, during each year ~hile any of
the principal of or interest on the Note is outstanding and unpaid,
eha1l compute and ascertain a rate and amount of ad valorem tax
~hich will be sufficient to raise and produce the money reqUired to
pay the interest on the Note as 8uch interest comes due, ~nd to
provide and maintain a sinking fund adequat. to pay the prinoipal
on the Note as such principal matures (but never less than 2t of
the original principal amount of the Note 88 a sinking fund each
yeer): and the tax shall be based on the latest approved tax rolls
of the City, with full allowance being made for tax d.linquencies
and the cost of tax collection. The rate and amount of ad valorem
tax is hereby levied, and is hereby ordered to be levied, against
all taxable property in the City, for ~ach year while the Note is
outstanding and unpaid; and 8uch tax shall. be assessed and
collected each year and deposited, as collected, to the credit of
an interest and sink~ng fund. The ad v4lorem taxes sufficient to
provide fo~ the payment of the interest on and principal of the
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EXHIBIT B
Note, as such interest comes due and such p~~cipa1 matures, are
hereby pledged . .vocably for such paym~ wi thin the limit
prescribed by 1a
SECTION 5. The City Council covenants to take any aotion or
refrain from any action which would adversely affect the treatment
of the Note as an obligation described in section 103 of the
Internal Revenue Code of 1986, as amended (the "Code"), the
interest on which 1s not includable in the "gross income" of the
holder for purposes of federal income taxation. In furtherance
thereof, the City Council covenants as follows:
( a) to take any action to assure that in the event that
the "private business use" of the Property (within the meaning
of section l41(b) of the Code) exceeds 5' of the original
principal amount of the Note, then the amount in excess of 5'
is used for a "private business use" which is "related" and
not "disproportionate," within the meaning of section
141(b)(3) of the Code, to the governmental use;
(b) to refrain from taking any action which would
otherwise result in the Note being treated as a "private
. activity bond" within the meaning of section l41(b) of the
Code; and
( c) to refrain from taking any action that would result
in the Note being "federally guaranteed" wi thin the meaning of
section 149(b) of the Code.
It 1s the understanding of the City that the covenants contained
herein are intended to assure compliance with the Code and any
regulations or rulings promulgated by the u.s. Department of the
Treasury pursuant thereto. In furtherance of such intention, the
City hereby authorizes and directs the Mayor of the City to execute
any documents, certificates, or reports required by the Code and to
make such elections, on behalf of the City, which may be permitted
by the Code as are consistent with the purpose for the issuance of
the Note. In the event that regulations or rulings are hereafter
promulgated which modify or expand provisions of the Code, as
applicable to the Note, the City will not be required to comply
with any covenant contained herein to the extent that such
modification or expansion, in the opinion of nationally-recognized
bond counsel, will not adversely affect the exemption from federal
income taxation of interest on the Note under section 103 of the
Code. In the event that regulations or rulings are hereafter
promulgated which impose additional requirements which are
applicable to the Note, the City agrees to comply with the
additional requirements to the extent necessary, in the opinion of
nationally-recognized bond counsel, to preserve the exemption from
federal income taxation of interest on the Note under section 103
of the Code.
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SECTION 6. 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
Ci ty for the time required by law preceding this meeting, as
required by the Open Meetings Law, Chapter 551, Tex. Gov't Code
Ann.; and that this meeting has been open to the public as required
by law at all times during which this ordinance and the subjeot
matte~ 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.
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SECTION 7. This Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
PASSED AND APPROVED, this 9th day of January, 1995.
CITY OF LA PORTE
By:
Norman L. Malone,
Mayor
ATTEST:
Sue Lenes,
City Secretary
APPROVED:
Knox W. Askins,
City Attorney
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Opinion Letter From
Akin, Bump, strausss, Hauer & Feld, L.L.P
(To be furnished later.)
EXHIBIT "c"
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e Request for Taxpayer e
Identification Number and Certification
Form W-g
(RlI'I. December 1988)
Department of the Treasury
Internal Revenue Service
Nilme (If jOint IIiImes, list first ilnd circle the name of the person or entity whose number you enter in Palt I below. See IlIItnIctJOIlI under "Nlm."If YOU' 1lIIlI. his chlnpd.)
J
Ii
HAR
ii Address (number and street)
i 619 BROWNELL
:
: City, state, and ZIP code
~ LA PORTE, TX 77571
Tax a er Identification Number
Enter your taxpayer identification number in
the appropriate box. For individuals and sole
proprietors, this is your social security number.
For other entities, it is your employer
identification number. If you do not have a
number, see How To Obtain a nN, below..
Note: If the account is in more than one name,
see the chart on page 2 for guidelines on whose
number to enter.
(, "
OR
Give this form
to the requester. Do
NOT send to IRS.
Ust account number(s)
here (optional).
For Payees Exempt From
Backup Withholding (See
Instructions)
Requester's name and address (optional)
Certlflcatlon.-Under penalties of pe~ury, I certify that:
(I) The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and
(2) I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by ~e
Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c)
the IRS has notified me that I am no longer subject to backup withholding (does not apply to real estate transactions, mortgage interest
paid, the acquisition or abandonment of secured property, contributions to an individual retirement'arrangement (IRA), and payments
other than interest and dividends).
Certlflcatlon Instructlons.- You must cross out item (2) above if you have been notified by IRS that you are currently subject to backup
withholding because of underreporting interest or dividends on your tax return. (Also see Signing the Certification under Specific
Instructions, on page 2.)
Please
Sip
Here
Sllnature.
Instructions
(Section references are to the Internal Revenue
Code.)
Purpose of Form.-A person who is required to
file an information return with IRS must obtain
your correct taxpayer identification number (TIN)
to report income paid to you. real estate
transactions, mortgage interest you paid, the
acquisition or abandonment of secured property,
or contributions you made to an individual
retirement arrangement (IRA). Use Form W-9 to
furnish your correct TIN to the requester (the
person asking you to furnish your TIN). and. when
applicable. (1) to certify that the TIN you are
furnishing is correct (or that you are waiting for a
number to be issued), (2) to certify that you are
not subject to backup withholding, and (3) to
claim exemption from backup withholding if you
are an exempt payee. Furnishing your correct TIN
and making the appropriate certifications will
prevent certain payments from being subject to
the 2096 baCkup withholding.
Note: " a requester gives you a form other than
a W.9 to request your nN, you must use the
requester's form.
How To Obtain a TIN.-If you do not have a TIN,
apply for one immediately. To apply, get Form
S5-S. Application for a Social Security Number
Card (for individuals) from your local office of the
Social Security Administration, or Form ~,
Application for Employer Identification Number
(for businesses and all other entities), from your
local Internal Revenue Service office.
To complete Form W-9 if you do not have a
TIN, write .Applied For" in the space for the TIN
in Part I. sign and date the form, and give it to the
n!lfuester. Generally, you will then have 60 days
to obtain a TIN and furnish it to the requester. If
the requester does not receive your TIN within 60
days. backup withholding, if applicable, will begin
and continue til you r h your TIN to the
requester. For reporta Ie interest or dividend
payments, the payer must exercise one of the
fallowing options concerning backup withholding
during this 60.day period. Under option (1), a
payer must backup withhold on any withdrawals
you make from your account after 7 business
days after the requester receives this form back
from you. Under option (2), the payer must
backup withhold on any reportable Interest or
dividend payments made to your account,
regardless of whether you make any withdrawals.
The baCkup withholding under option (2) must
begin no later than 7 business days after the
requester receives this form back. Under aptian .
(2) the payer is reqaired to refund the amounts
withheld if your certified TIN is received within
the 6o-day period and you were not subject to
backup withholding during that period.
Note: Writing -Applied For- on the form meanS
that you have already applied for a TIN OR that
you intend to apply for one in the near future.
As soon as you receive your TIN, complete
another Form W.9. include your TIN, sign and
date the form, and give it to the requester.
What Is Backup Wlthholdlngl-Persons making
certain payments to you are required to withhold
and pay to IRS 2096 of such payments under
certain conditions. This is called "backup
withholding." Payments that could be subject to
backup withholding include interest, dividends,
broker and barter exchange transactions. rents.
royalties. nonemployee compensation, and
certain payments from fishing boat operators, but
do not include real estate transactions.
If you give the requester your correct TIN,
make the appropriate certifications, and report all
your taxable interest and dividends on your tax
return, your payments will not be subject to
backup withholding. Payments you receive will be
subject to backup withholding if:
. Date.
(1) You do not furnish your TIN to the
requester. or
(2) IRS notifies the requester that you
furnished an incorrect TIN. or
(3) You are notified by IRS that you are
subject to backup withholding because you failed
to report all your interest and dividends on your
tax return (for interest and dividend accounts
only), or
(4) You fail to certify to the requester that you
are not subject to backup withholding under (3)
above (far interest and dividend accounts opened
after 1983 only). or
(5) You fail to certify your TIN. This applies
only to interest, dividend. broker. or barter
exchange accounts opened after 1983, or broker
accounts considered inactive in 1983.
Far other payments, you are subject to backup
withholding only if (1) or (2) above applies.
Certain payees and payments are exempt from
backup withholding and information reporting.
See Payees and Payments Exempt From Backup
Withholding, below, and Exempt Payees and
Payments under Specific Instructions, on page 2,
if you are an exempt payee.
)Payees and Payments Exempt From Backup
\.. Wlthholdlng.- The following is a list of payees
-exempt from backup withholding and for which
no information reporting is required. For interest
and dividends. all listed payees are exempt
except item (9). Far broker transactions, payees
listed in (1) through (13), and a person registered
under the Investment Advisers Act of 1940 who
regularly acts as a broker are exempt. Payments
subject to reporting under sections 6041 and
6041A are generally exempt from backup
withholding only if made to payees described in
items (1) through (7), except that a corporation
that provides medical and health care services or
bills and collects payments for such services is
not exempt from backup witl!.holding or
Form W.g (Rev. 12-88)