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REQU. FOR CITY COUNCIL AGW>A ITEM
Agenda Date Requested: Mav 12. 2003
Appropriation
Requested By: DOU2 Kneupper/Gwen Goodwin
Source of Funds:
Northside Neighborhood
Department: Plannin2
Account Number:
15-9892~59-1100
Report: _Resolution: _Ordinance: -L..
Amount Budgeted:
$107,771
Ordinance authorizing a contract with America's
Estate Properties, Inc to construct house(s) for
the HOME Grant program
Exhibits: Ordinance
Area Map
Agreement
Amount Requested:
$ 92,450
Budgeted Item:
~ NO
SUMMARY & RECOMMENDATION
During the Council's December 9, 2002 meeting, Council formally accepted two contracts with the Office of
Housing and Economic Development (OHED). Contract #1 provides $181,900 for the construction of two
"model" homes built on 4 lots.
In February 2003, the City issued a Request for Qualifications for the construction of these 2 homes. The
Selection Committee chose two builders: America's Estate Properties, Inc and Bayou Housing Partners. (When
Contract #2: Down payment and closing cost assistance is executed, these builders may also be asked to
construct one or several of the subsequent 9 homes; however, the builders are responsible for securing
independent financing for the acquisition of lots and construction of the homes.) America's Estate Properties,
Inc. will build a home at 330 N. 5th Street, also described as lots 1 & 2 of Block 80, La Porte, Texas. This home
is priced at $92,450. Throughout construction, the builder will request a draw as key milestones are reached.
The City will pay the builder and submit a request for reimbursement with OHED as stipulation in Section ITI. -
Payment paragraph #2 of the City's executed contract with OHED. The City will pay the builder and submit a
request for reimbursement with OHED as stipulation in Section ITI. - Payment paragraph #2 of the City'~.
executed contract with OHED. Our 25% commitment will not exceed the budgeted amount.
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Council is asked to consider an ordinance authorizing a contract between the City and America's Estate
Properties, Inc. to construct Plan #1520-Houston (1,554 sq ft.) priced at $92,450.
Action Reauired bv Council:
1. Approve an ordinance authorizing an agreement between the City and America's Estate Properties, Inc. to
construct house(s).
ADDroved for City Council Ae:enda
S-Cc -d3
Date
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CITY OF LA PORTE PLANNING DEPARTMENT
604 W. Fairmont Parkway, La Porte, TX 77571
www.ci.la-porte.lx.us
Phone: (281) 471-5020 I Fax (281) 471-7168
MEMORANDUM FOR RECORD
March 4, 2004
TO: Director, Planning Department
FROM: City Planner
SUJECT: Pending Council Packet Documents; Ordinance 2003-2632; American Estate
Properties (Home Program) Pending Contract; dtd. 5/12/2003
The contract with America's Estate Properties, as referenced, was originally on hold pending
the company's attempt to secure the necessary Bonding for the project. American Estate
Properties failed to obtain the necessary Bond therefore nullifying the contract with the City
of La Porte.
Since the contract was never enacted, the referenced entry for pending documents should be
deleted from the list.
0!rt:Lj~
City Planner
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ORDINANCE NO. 2003- 9. (P.3~
AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE
CITY OF LA PORTE AND AMERICA'S ESTATE PROPERTIES, INC. FOR
CONSTRUCTION OF A MODEL HOME AT 330 N. 5TH STREET, ALSO DESCRIBED
AS LOTS 1 & 2 OF BLOCK 80, LA PORTE, TX 77571, AS PART OF THE HOME
INVESTMENT PARTNERSHIP (HOME) PROGRAM FOR THE CITY OF LA PORTE,
TEXAS; APPROPRIATING $92,450.00 TO FUND SAID CONTRACT; 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. City Council appropriates the sum of $92,450.00, from the Capital
Improvement Account Number 15-9892-859-1100, to fund said contract. The Office of
Housing and Economic Development will reimbursement the City as stated in the
agreement.
Section 2. The City Council officially finds, determines, recites, and declares that
a sufficient written notice of the date, hour, place and subject of this meeting of the City
Council was posted at a place convenient to the public at the City Hall of the City for the
time required by law preceding this meeting, as required by the Open Meetings Law,
Chapter 551, Texas Government Code; and that this meeting has been open to the public
as required by law at all times during which this ordinance and the subject matter thereof
ORDINANCE NO. 2003-' ~J:;)"
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Section 3. This Ordinance shall be effective from and after its passage and
approval, and it is so ordered.
PASSED AND APPROVED, this 10000ay of vhl1
,2003.
CITY OF LA PORTE
By: ~~~
, Norman l. Malone
Mayor
ATTEST:
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Ma a A. Gillett
City Secretary
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CITY OF LA PORTE, TEXAS
AGREEMENT for CONSTRUCTION of
SINGLE-FAMILY RESIDENCE
Northside neighborhood HOME Program
General Description
The City of La Porte received a HUD HOME grant to develop a homeownership program designed
to benefit Northside residents. This contract is for the construction of one (1) single-family
residence at 330 N. sth Street, also described as lots 1 & 2 of Block 80, La Porte, TX 77571.
The work shall be completed by September 30,2003.
Subcontractor/Consultant
Provide the City with a list of subcontractors or consultants you may use on the project.
Describe the function, work, or services and identify the name, address, qualifications and
experience of the subcontractor or consultant. No subcontracting, not submitted shall be
performed without the express written approval of the City; and Contractor shall not assign any
of the rights and privileges granted herein without first having obtained the written consent of the
City.
Pre Construction meeting
Prior to starting the project, a pre-construction meeting shall be held with Planning Department
staff by May 19, 2003. At the meeting, the contractor will discuss the construction timeline, plan
submittal and review, required inspections, and project schedule of values.
Permits:
The contractor shall obtain all necessary permits from the City of La Porte Inspection Services
Division located at 604 W. Fairmont Parkway, La Porte, TX 77571. Permit fees shall be waived
for this project. The contractor shall obtain and make payment for any and all permits as
required by the State of Texas and Federal Government including T.C.E.Q. and E.P.A.
Compliance with all laws
All ofthe.contractor's operations ~hall be performed in such manner as to comply with all United
States aDd State of Texas laws, and with all ordinances of the City of La Porte. This also includes
Wind Storm requirements and other standards deemed necessary by the City of La Porte.
Finishes and colors
The City and the contractor shall coordinate color schemes and other selections for this house unless
a qualified homebuyer is identified. In that case, the homebuyer will coordinate with the contractor
for color schemes.
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Insurance requirements
The contractor shall provide a certificate of insurance executed by an insurance company authorized
to do business in Texas, and shall contain the amounts as stated herein.
WORKMAN'S COMPENSATION: As required by State requirements.
PUBLIC LIABILITY:
$ 50,000.00 anyone accident
$100,000.00 anyone person
PROPERTY DAMAGE: $ 10,000peroccurrence
$100,000 aggregate
The City of La Porte shall be named as Additional Insured.
Performance and Payment Bonds
The Contractor shall be required to furnish performance and payment bonds, executed on the
forms enclosed herein, each bond in an amount at least equal to one hundred percent (100%) of
the total contract price, as security for the faithful performance of the contract and for the
payment of all persons performing labor or furnishing materials and equipment on the project.
Work to be performed
Contractor shall develop all necessary plans and construction documents, submit for and receive
building permits and then construct a single-family residence for a total compensation of
$92,450. The home shall include but not be limited to the following:
. The first home's floor plan shall be The Houston that can be built on 50' x 125' sites and be in
compliance with the City's Zoning and Development Ordinances.
. As agreed upon, the total square footage will be approximately 1554.
. Exterior features shall include but not be limited to the following: Brick veneer exterior on three
walls, hardiplank fiber cement siding on rear, composition class "a" fire rated roof, engineered
concrete slab foundation, concrete patio (10' x 10'), aluminum window frames, and screens for all
operable windows.
. Other exterior features: landscaping including sod in the front yard with at least 2 trees plus shrubs;
lighting for entry, durable overhead 2 car garage, 6' cedar fence with access gate
. Appliances including but not limited to: vent-a-hood with exhaust, dishwashers, gas/electric stove,
garbage disposals, ice maker connection.
.. All wiring including but not limited to: pre-wiring for security, two phone jacks, cable outlets, gas
and electric hook ups in the laundry area, GFCI wiring in wet areas.
. Other interior features including but not limited to: two-toned interior paint, medicine cabinets and
linen closets in all bathrooms, countertops, backsplash and cabinets must meet or exceed builders
grade quality, double lock front doors, carpet in all areas except wet areas, vinyl flooring in the wet
areas (entry way, kitchen, bath, laundry room), Cathedral and/or raised ceiling fans and deluxe
lighting kits for living/family room and master bedroom, shower over tub, and air
conditioning/central heat. The following materials/appliances (materials at a higher quality) must be
used: R-13 insulation, 12 seer air conditioning, w/ 10 year warranty.
. Construction materials and methods will be required to meet or surpass current International Energy
Code requirements. These methods must also meet or surpass City of La Porte, State of Texas, and
HUD regulations and codes.
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. Construction materials and methods will be required to meet or surpass current International
Residential Code requirements. These methods must also meet or surpass City of La Porte, State of
Texas, and HUD regulations and codes.
. At a minimum the house must have a IO-year new home warranty.
Completion of Work: Retainage
Upon the completion and City issuance of a Certificate of Occupancy, the home shall become the sole
property of the City of La Porte. The final payment to the contractor and release of all retainage will be
contingent upon the release of all liens by subcontractors, and a Bills Paid Affidavit.
Compensation and Retainage
Compensation for all the work described in this Agreement shall not exceed $92,450. Biweekly
invoices shall be submitted based upon work completed and the approved schedule of values. In
addition, a status report shall be submitted monthly. Retainage of five percent (5%) will be
withheld from biweekly payments as determined by a draw schedule.
Dispute Resolution
The parties will attempt in good faith to resolve any controversy or claim arising out of or relating to
this agreement promptly by negotiation between senior executives of the parties who have authority
to settle the controversy.
The disputing party shall give the other party written notice of the dispute. Within ten days after
receipt of said notice, the receiving party shall submit to the other a written response. The notice
and response shall include (a) a statement of each party's position and a summary of the evidence
and arguments supporting its position, and (b) the name and title of the executive who will represent
that party. The executive shall meet at a mutually acceptable time and place within twenty days of
the date of the disputing party's notice and thereafter as often as they reasonably deem necessary to
exchange relevant information and to attempt to resolve the dispute.
If the controversy or claim has not been resolved within thirty days of the meeting of the senior
executives, the parties shall endeavor to settle the dispute by mediation under the Center for Public
Resources Model Procedure for Mediation of Business Disputes or pursue amicable termination.
If the matter has not been resolved pursuant to the aforesaid mediation procedure within sixty days
of the commencement of such procedure, (which period may be extended by mutual agreement), or
if either party will not participate in such procedure, the parties shall pursue amicable termination.
Contractual obligation
Executing this agreement signifies that all parties agree and understand the terms and
responsibilities expressed in this document, the scope of services, and the program description.
This also means that America's Estate Properties, Inc. will participated in the construction of
homes for the City's Single-Family New Construction program and Down payment
assistance/Closing Costs program in accordance with all applicable rules and regulations of the
Department of Housing and Urban Development (HOD), the County, and the City.
Entire Agreement
This instrument contains the entire Agreement between the parties related to the rights herein
granted and obligations herein assumed. Any oral or written representations or notifications
concerning this instrument shall be of no force or effect excepting a subsequent modification in
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writing signed by both parties hereto. The headings herein are for convenience only and shall
have no significance in the interpretation hereof
Severability
If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of
this Agreement shall, for any reason, not be legally or factually valid, such invalidity shall not
affect the remaining portions of this Agreement.
Effective Date
This agreement shall be in effect from and after its passage and approval.
elL
Date
Date
A TIEST:
Martha Gillett, City Secretary Date
APPROVED AS TO FORM:
Date
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PERFORMANCE BOND
STATE OF TEXAS ~
COUNTY OF HARRIS ~
KNOW ALL MEN BY THESE PRESENTS: That of the City of
County of . and State of , as principal, and
authorized under the laws of the State of Texas to act as surety on bonds for principals,
are held and firmly bound unto The City of La Porte (Owner), in the penal sum of
dollars ($ ) for the payment
whereof, the said Principal and Surety bind themselves, and their heirs, administrators,
executors, successors and assigns, jointly and severally, by these presents:
WHEREAS, the Principal has entered into a certain written contract with the Owner,
dated the day of ,2003, to which contract is hereby referred to and
made apart hereof as fully and to the same extent as if copied at length herein.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the
said Principal shall faithfully perform said Contract and shall in all respects duly and
faithfully observe and perform all and singular the covenants, conditions and agreements
in and by said contract agreed and covenanted by the Principal to be observed and
performed, and according to the true intent and meaning of said Contract and the Plans
and Specifications hereto annexed, then this obligation shall be void; otherwise to remain
in full force and effect;
"PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of
Vernon's Texas Codes Annotated. Texas Government Code. Chapter 2253, as amended
and all liabilities on this bond shall be determined in accordance with the provisions of
said Article to the same extent as if it were copied at length herein. "
Surety, for value received, stipulates and agrees that no change, extension of time,
alteration or addition to the terms of the Contract, or to the work performed thereunder,
or the plans, specifications, or drawings accompanying the same, shall in any way affect
its obligation on this bond, and it does hereby waive notice of any such change, extension
of time, alteration or addition to the terms of the contract, or to the work to be performed
there under.
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IN WITNESS WHEREOF, the said Principal and Surety have signed and sealed this
instrument this day of , 2003.
Principal
Surety
By:
By:
Title:
Title:
Address:
Address:
The name and address of the Resident Agent of Surety is:
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PAYMENT BOND
STATE OF TEXAS
COUNTY OF
KNOW ALL MEN BY THESE PRESENTS: That of the City of
County of , and State of , as principal, and
authorized under the laws of the State of Texas to act as surety on bonds for
principals, are held and firmly bound unto The City of La Porte (Owner), in the penal sum of
dollars ($ ) for the payment whereof, the said Principal and Surety bind
themselves, and their heirs, administrators, executors, successors and assigns, jointly and severally, by
these presents:
WHEREAS, the Principal has entered into a certain written contract with the Owner, dated the
day of ,2003, to which contract is hereby referred to and made apart hereofas
fully and to the same extent as if copied at length herein.
NOW, THEREFORE, THE CONDITION OF TfllS OBLIGATION IS SUCH, that if the
said Principal shall pay all claimants supplying labor and material to him or a subcontractor in the
prosecution of the work provided for in said contract, then, this obligation shall be void; otherwise to
remain in full force and effect;
"PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions ofVemon'~
TexSl~ l:octe~ AnnotSltP.ct, Ten~ C'TOvemment l:octe, l:hSlpter ??lil, as amended and all liabilities on this
bond shall be determined in accordance with the provisions of said Article to the same extent as if it
were copied at length herein. "
Surety, for value received, stipulates and agrees that no change, extension of time, alteration or
addition to the terms of the Contract, or to the work performed thereunder, or the plans, specifications,
or drawings accompanying the same, shall in such change extension of time, alteration or addition to
the terms of the contract, or to the work to be performed thereunder.
Payment Bond 1 of2
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IN WITNESS WHEREOF, the said Principal and Surety have signed and sealed this
instrument this _ day of , 2003.
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Surety
By:
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By:
Title:
Title:
Address:
Address:
The name and address of the Resident Agent of Surety is:
Payment Bond 2 of2
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CITY OF LA PORTE
CERTIFICA TION BY CONTRACTOR
The undersigned hereby certifies it has been furnished a copy of City of La Porte Ordinance #98-
2217 prohibiting any expenditure for goods or services by the City of La Porte from any person,
firm, or corporation owing any delinquent indebtedness to the City. The undersigned bidder
further certifies that it is in compliance with the requirements of said ordinance.
If undersigned is not in compliance with Ordinance 98-2217, it hereby assigns to the City of La
Porte, the amount of its delinquent indebtedness to the City of La Porte, to be deducted by the
City of La Porte from the amounts due the undersigned.
Failure to remit this certification or non-compliance with said ordinance shall be just cause for
rejection or disqualification.
_ The undersigned hereby certifies that it is in compliance with Ordinance 98-2217.
or
_ The undersigned assigns to the City of La Porte, the amount of its delinquent indebtedness,
to be deducted by the City of La Porte from the amounts due the undersigned.
(Initial one o/the above)
Business Name:
Address:
Authorized Signature:
Printed Name: