Loading...
HomeMy WebLinkAbout2008-01-28 Regular Meeting and Workshop Meeting of the La Porte City Council Minutes 5 ^ MINUTES OF REGULAR MEETING AND WORKSHOP MEETING OF THE LA PORTE CITY COUNCIL January 28, 2008 1. CALL TO ORDER The meeting was called to order by Mayor Porter at 6:00 p.m. Members of City Council Present: Mayor Pro Tem Rigby, Council members Tommy Moser, Mike Clausen, Georgia Malone, Mike Mosteit, Chuck Engelken, Howard Ebow and Mayor Porter. Members of Council Absent: Mike Clausen Members of City Executive Staff and City Employees Present: City Attorney Knox Askins, Assistant City Attorney Clark Askins, City Manager Ron Bottoms, Planning Director Wayne Sabo, Finance Director Michael Dolby, Assistant City Manager John Joerns, City Secretary Martha Gillett, Director of Public Works Steve Gillett, Assistant Fire Chief John Dunham, Emergency Management Coordinator Jeff Suggs, Assistant Chief of Police Aaron Corrales, Director of Parks and Recreation Stephen Barr, GIS Coordinator Brian Sterling, Police Economic Development Coordinator Gretchen Black, Downtown Revitalization Coordinator Debra Dye, Police Chief Richard Reff, Lieutenant Ron Parker, Fire Chief Mike Boaze, Lieutenant Gary Rice, Controller Phyllis Rinehart, Human Resources Manager Heather Weger, Lieutenant Steve Deardorff, and a number of other employees. Others present: John Handy of the Houston Chronicle, Adam Yanelli of the Bayshore Sun, Phillip Hoot, Jan Lawler, Shar Lynch, Ed Matuszak, Ann Malone, Fred Muston, Don Hill of the Inter-Church Council, Pam Kroupa, Tracy Moser, Rehth Hall, Trey Hall, Alex Rodrisoes, Sharon Tremaine, John Treamine, Estavan Gibson, Randall Polvado, Vanessa Ayala, Cameron ODonel, Eric and Melissa O'Donel, Mike Gonzalez, Marie Gonzalez, Mr. and Mrs. Dionisio, E.J. Drake, Samuel C. Banks, Thomas Weippert, Jessey Wikon, Davis Kroupa, Joshua Thomas, Kenyen Lewis, Ian Moser, Jerry McNeil, Bill Manning, Jr., Ed Matuszak and a number of citizens and Boy Scouts. 2. Don Hill of the Inter-Church Council delivered the Invocation. 3. Mayor Porter led the Pledge of Allegiance. 4. PRESENT A TIONSI PROCLAMATIONS A. Mayor Porter presented a Certificate of Achievement for Excellence for Comprehensive Annual Financial Report. Finance Director Michael Dolby and Controller Phyllis Rinehart were present to receive the award. B. Mayor Porter presented Proclamation to Troop 930 and Pack 930. 5. CONSENT AGENDA A. Consider approving Minutes of the Regular Meeting and Workshop Meeting of the La Porte City Council held on January 14, 2007. B. Council to consider approval or other action of an Ordinance approving and authorizing a project cooperation Agreement between the City of La Porte and the Texas General Land Office to provide construction, construction monitoring, and administrative services for the Sylvan Beach Shoreline Protection and Beach Nourishment Project according to the terms of the agreement provided. (Ord. 3061 ). C. Council to consider approval or other action of an Ordinance amending Fiscal Year 2007-2008 Budget (Ord. 2007-3024- E). D. Council to consider approval or other action of an Ordinance calling for the Regular Annual Election of the City of La Porte to be held on May 10, 2008, and calling for a Run-Off Election, if necessary. (Ord. 3062). E. Council to consider approval or other action of Approving Ordinances 2007 -IDA- 83, 2007-IDA-84, 2007-IDA-91, 2007-IDA-94 and 2007-IDA-101. Motion was made bv Councilmember EnQelken to approve consent aQenda as presented. Second by Councilmember Malone. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Engelken, Ebow, and Malone. Abstain: None Absent: Clausen Councilmember Moser requested staff to consider placing budget adjustments after the action item has been voted on. Council had questions on items Band C. 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA. There were no citizens wishing to address Council. 7. Council to consider approval or other action to convey lots held in trust by the City of La Porte to Habitat for Humanity to construct affordable housing. Motion was made by Councilmember Beasley to table this item until a future meeting. Second by Councilmember Engelken. Motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Engelken, Ebow and Malone. Abstain: None Absent: Clausen Council took Executive Session Item D out of order at this time. Council adjourned to Executive Session at 6:17 p.m. Council returned to the table at 7: 18 p.m. with no action taken and reconvened the Regular Meeting. 8. Council to consider approval or other action of a letter of Agreement from the Texas Main Street Program to continue Downtown Revitalization efforts. Main Street Coordinator Debra Dye presented summary and recommendation and answered Council's questions. Motion was made by Councilmember Beasley to approve the AQreement as presented by Ms. Dye. Second by Councilmember Malone. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Engleken, Ebow, and Malone. Abstain: None Absent: Clausen 9. Council to consider approval or other action of an Ordinance amending the Civil Service Ordinance authorizing number of positions in the classifications. Police Chief Richard Reff presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read: ORDINANCE 1285-R- "AN ORDINANCE IMPLEMENTING POLICEMAN'S CIVIL SERVICE; ESTABLISHING CLASSIFICATIONS; NUMBER OF AUTHORIZED POSITIONS IN EACH CALSSIFICATION; ESTABLISHING PAY SCHEDULES"; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Enqelken to approve Ordinance 1285-R as presented by Chief Reff. Second by Councilmember Malone. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Beasley, Engleken, Ebowand Malone. Nays: Moser Abstain: None Absent: Clausen 10. Council to consider approval or other action of the Developer's Agreement, Covenants, conditions, and restrictions for "The Lakes at Fairmont Greens", to be located Along State Highway 146 adjacent to the Bay Forest Golf Course. Planning Director Wayne Sabo presented summary and recommendation and answered Council's questions. Motion was made be Councilmember Riqby to approve the aQreement as presented by Mr. Sabo. Second by Councilmember Beasley. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Engelken, Ebowand Malone. Abstain: None Absent: Clausen 11. Council to consider approval or other action authorizing the City Manager to execute an Agreement with Klotz and Associates to conduct a City-wide Drainage Study in the amount of $133,210. Planning Director Wayne Sabo presented summary and recommendation and answered Council's questions. Motion was made by Councilmember Enqelken to approve the Aqreement as presented by Mr. Sabo. Second by Councilmember Ebow. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Engelken, Ebow and Malone. Abstain; None Absent: Clausen Council recessed at 8:20 p.m. for a short break and reconvened the regular meeting at 8:25 p.m. with no action taken. 12. Closed Regular Meeting and Open Workshop Meeting at 8:26 p.m. A. Parks and Recreation Director Stephen Barr presented two proposed Agreements with the La Porte- Bayshore Area Heritage Society, pertaining to future operations of Sylvan Beach Depot. The Council director Mr. Barr to have a needs assessment of the building and visit with the La Porte Bayshore Area Heritage Society as to which option they preferred. They further directed Mr. Barr to place this item on a future Council agenda once the Council requests are completed. B. Director of Planning, Wayne Sabo, Public Works Director, Steve Gillett, and Parks and Recreation Director, Steven Barr updated City Council on the status of Capital Improvement Projects. C. Public Works Director Steve Gillett presented a selection of proposed streets for asphalt overlay. Council directed staff to move forward. 13. Mayor Porter closed Workshop Meeting and re-convened Regular Meeting at 9:04 p.m.. 14. Administrative Reports City Manager Ron Bottoms provided Council with the following Administrative Reports: 2008 Elected Officials Conference - February 1-3, 2008 -Irving, Texas. Records Management Day - February 18, 2008. Commissioner Garcia Town Hall Meeting - February 28,2008 - East Harris County Activity Center - 6:30 p.m. - 8:00 p.m. Update on short Term and Long Term Drainage Projects Bay Area Houston Economic Partnership - First Annual State of the Economy - January 31, 2008 - NASA - Giruth Center - 4:00 p.m. - 6:00 p.m. Wished Planning Director Wayne Sabo well in his new endeavors. 15. Council Comments - , Mosteit, Rigby, Moser, Beasley, Malone, Ebow, Engelken and Porter. 16. 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, DELBERA TION 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) 551.072 (Deliberation regarding Real property) Meet with City Attorney, City Manager, and Director of Parks to discuss Pasadena La Porte Joint Venture Sports Complex 551.073 (Deliberation regarding prospective giftO Meet with City Manager, City Attorney and Economic Development Coordinator to discuss prospective gift to City of La Porte 551.087 (Deliberation regarding Economic Development) Meet with City Manager and City Attorney to discuss Sylvan Beach Development 551.072 (Deliberation regarding Real property) 551.074 (Personnel Matter) Met with City Manager and City Attorney to discuss Rail Spur Agreement Meet with City Manager to discuss Duties Council retired to Executive Session at 9:18 p.m. and returned to Regular Meeting and reconvened at 11 :09 p.m. 17. Considerations and possible action on items in executive session. There was no action taken. 18. There being no further business to come before Council the Regular Meeting was duly adjourned at 11:10 p.m. Respectfully submitted, LfJl&d~ Martha Gillett, TRMC, CMC City Secretary Passed and approved on this 11 th day of February 2008. ~~~~- Mayor Alton E. Porter B REQUEST FOR CITY COUNCIL AGENDA ITEM Bud2et Requested By: Source of Funds: EDC Report: Resolution: Ordinance: X Account Number: 038-6030-565-7001 (2) (4) & (5)* Amount Budgeted: $0 Department: Exhibits: Revised Lease Agreement 908 Main Amount Requested: $8,300 SUMMARY & RECOMMENDATION Attached you will find a copy of a revised lease agreement between the City and the Economic Alliance Houston Port Region which was originally approved by the City Council last fall. Subsequent to that approval by Council staff found that there were sections of the agreement which needed further refinement and definition. At the last City Council meeting you were present with the proposed changes which were highlighted in orange on the attached agreement. The key changes center around defining payment for services delivered to the City by the Alliance and the method of payment by the City as well as the value of monetary credits given for potential leasehold improvements. The date of the Agreement was also changed by mutual agreement to begin a fresh new 10 year period beginning on January 1 of 2008. Subsequent to this final draft for your consideration we were also informed by the Alliance of grant funds that they have secured for other improvements. Staff and the Alliance updated you on this new development in Executive Session at the last meeting. This information is addressed as well in the revised agreement and it will be handled formally under separate cover at a later date. *Note: In order to track the funds appropriately as an economic development activity staff is recommending that they be placed in the ED budget and a budget adjustment will be requested at the next LPEDC meeting on February 25, 2008. Action Required by Council: Approve th attached Ordinance authorizing the City Manager to execute a revised Lease Agre ent be een the City of La Porte and the Economic Alliance Houston Port Region. J /~~~ Date ORDINANCE NO. 2008-~q TD- A AN ORDINANCE APPROVING AND AUTHORIZING AN AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF LA PORTE AND THE ECONOMIC ALLIANCE HOUSTON PORT REGION, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, 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 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. 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 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 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this lr~day of'~uar~, 2008. CITY OF LA PORTE ~y~ Alton E. Porter, Mayor By: ATTEST: Lff1 d1tfrtutl ~4 Martna A. Gillett City Secretary APPROVED: ~T~ Clark T. Askins Assistant City Attorney 2 Lease Agreement This Lease Agreement ("Lease") is made and entered into January 1, 2008, by and between the City of La Porte, Texas (herein known as "Landlord") and Economic Alliance Houston Port Region (Tenant"). Landlord is the owner of land and improvements situated thereon commonly known and numbered as 908 West Main Street, La Porte, Texas 77571 ("Leased Premises") and legally described as follows: Block 52, Lots 20 and 21, town of La Porte. Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the Leased Premises from Landlord for the term, at the rental and upon the covenants, conditions and provisions herein set forth. THEREFORE, in consideration of the mutual promises herein, contained and other good and valuable consideration, it is agreed: 1. Term. A. Landlord hereby leases the Leased Premises to Tenant, and Tenant hereby leases the same from Landlord, for an "Initial Term" beginning January 1, 2008 and ending March 31, 2018. Landlord shall use its best efforts to give Tenant possession as nearly as possible at the beginning of the Lease term. If Landlord is unable to timely provide the Leased Premises, rent shall abate for the period of delay, provided that Landlord shall not be liable or responsible for any claims, damages, or liabilities in connection therewith or by reason thereof. B. After review by the Landlord, the Tenant shall have the option to renew the Lease Agreement for an additional ten (10) year term, upon the expiration of the Initial Term, provided that Tenant provides Landlord with ninety (90) days prior written notice thereof. The failure to furnish said ninety (90) days written notice shall cause this Lease Agreement to automatically expire at the end of the Initial Term. C. Tenant shall have the right to terminate and exit the Lease Agreement after the first three (3) years of the Initial Term, by providing ninety (90) days prior written notice to Landlord. Tenant's right to terminate the Lease Agreement after the first three years of the Initial Terms is subject to Landlord's ability to relet the Leased Premises with a replacement tenant, agreeable to both Landlord and Tenant. 2. Rental. A. Tenant shall pay without demand to Landlord during the Initial Term rental of $20,000 per year, prorated at $1,667.00 per month; provided however, that Landlord shall not collect monthly rental as provided herein, but will provide the Leased Premises in consideration for, and in lieu of, the $20,000.00 annual fee for membership in the Economic Alliance Houston Port Region. Membership privileges for Landlord shall continue on a reoccurring annual basis, coterminous with the lease term established in this section, so long as the Lease Agreement is in effect. However, in the event that the Economic Alliance Houston Port Region should adjust its yearly city membership fee, the yearly rental established herein shall be adjusted accordingly, to equal the amount of the revised membership fee. This Agreement terminates and supersedes all prior understandings or agreements or contracts on the membership subject matter hereof. B. The rental for any renewal lease term, if created as permitted under this Lease, shall be in the amounts established by the Parties, pursuant to Section 2 A of this Agreement. 1 C. In addition to the monthly rental fees established in Section 2 A., above, the Tenant shall provide additional services as outlined on Exhibits A and B, attached to this Lease Agreement and incorporated for all purposes, as deliverables to the Landlord to off-set the additional square footage provided to the Tenant for their use in excess of the regular office space initially requested by the Tenant; provided however, that the value of the credit to the Tenant by the Landlord for the off-set (deliverables) for the additional space provided shall not exceed $8,333 annually. The additional space provided can be utilized as the Tenant determines is appropriate for their operations as long as such usage is in accordance with Section 6.of this agreement. D. Notwithstanding Section C. above the Landlord acknowledges that the value of the on-going deliverables as specified in Exhibits A and B to this Lease Agreement will likely exceed the costs necessary to off-set the additional office space provided to Tenant, and recognizes that additional yearly credits will need to be given to the Tenant by the Landlord as either credits for additional services provided or for improvements to the leasehold by Tenant, in accordance with Section 6. of the Lease Agreement. 3. Use. Notwithstanding the foregoing, Tenant shall not use the Leased Premises for the purposes of storing, manufacturing or selling any explosives, flammables or other inherently dangerous substance, chemical, thing or device. 4. Sublease and Assianment Tenant shall have the right, without Landlord's consent, to assign this Lease to a corporation with which Tenant may merge or consolidate, to any subsidiary of Tenant, or to a purchaser of substantially all of Tenant's assets. Except as set forth above, Tenant shall not sublease all or any part of the Leased Premises, or assign this Lease in whole or in part without Landlord's consent, such consent not to be unreasonably withheld or delayed. 5. Repairs. During the Lease term, Landlord shall make, at Landlord's expense, all necessary repairs to the Leased Premises, including premises damaged or worn through normal property occupancy. Tenant shall notify Landlord of needed repairs in a timely manner and consent shall be obtained from the Tenant prior to the repair to better ensure minimal work disruption. Repairs shall include such items as routine repairs of plumbing, concrete, landscaping, lighting, and other parts of the Leased Premises damaged or worn through normal property occupancy subject to the obligations of the parties otherwise set forth in this Lease. 6. Alterations and Improvements. Tenant, at Tenant's expense, shall have the right following Landlord's consent to remodel, redecorate, and make additions, improvements and replacements of and to all or any part of the Leased Premises from time to time as Tenant may deem desirable, provided the same are made in a workmanlike manner and utilizing good quality materials. Tenant shall have the right to remove the same at any time during the term of this Lease provided that all damage to the Leased Premises caused by such removal shall be repaired by Tenant at Tenant's expense and agreed by both parties. Subject to the aforementioned requirements in this section, rental fees shall remain as outlined in Section 2 above, if any Alteration and/or Improvement of any part thereof or any appurtenance of the Leased Premises results in providing more occupancy space for the Tenant. Monetary credits for leasehold improvements will be provided to the Tenant by Landlord in an amount equal to the cost of ir,lprovements. The monetary credits will be given by the Landlord through the continued payment of utilities as specified in Exhibits A and B to this Lease Agreement. The value of the monetary credits to be given to each of the parties will be in accordance with Exhibit C to this Lease Agreement. Any enhancements to bring the property in 2 compliance with state or federal regulations such as the American Disabilities Act shall be made at the expense of the Landlord, with notification to the Tenant. 7. Utilities and Amenities. A. The Landlord shall pay the costs for the utilities at the location as monetary credits to the Tenant for improvements to the facilities made by or on behalf of the Tenant in accordance with the terms of Section 6. of this Lease Agreement, or for services which exceed $8,333.00 per year. B. Any credits, whether accumulated in exchange for services as listed on Exhibits A and B or for leasehold improvements as noted in Section 6, shall be deemed forfeited by the Tenant at the end of the lease if another lease is not executed in accordance with Section 1 C. of this Lease Agreement. 8. Taxes. Landlord is a municipal corporation and is exempt from taxes. Tenant shall be responsible for any taxes on its leasehold estate that may otherwise apply. 9. Insurance. A. As owner of the property, the Landlord shall be responsible for costs to repair the Leased Premises if damaged by fire or other casualty, including if the damage results from an unintentional act or negligence of Tenant or any of Tenant's agents, employees or invitees. The Landlord shall carry insurance for unintentional damage by tenant or any of Tenant's agents, employees or invitees. The Tenant shall be responsible for any costs of repairs not covered by insurance if the act resulting in damage is demonstrated to be intentionally caused by the Tenant. B. Landlord shall maintain fire and extended coverage insurance on the Leased Premises in such amounts as Landlord shall deem appropriate. Tenant shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located on or within the Leased Premises. The Landlord shall be responsible for flood insurance for the building. C. Tenant and Landlord shall, each at its own expense, maintain a policy or policies of comprehensive general liability insurance with respect to the respective activities of each party on the Leased Premises with the premiums thereon fully paid on or before due date, issued by and binding upon some insurance company approved by Landlord, such insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury, property damage or combination thereof. Landlord shall be listed as an additional insured on Tenant's policy or policies of comprehensive general liability insurance, and Tenant shall provide Landlord with current Certificates of Insurance evidencing Tenant's compliance with this Paragraph. Tenant shall obtain the agreement of Tenant's insurers to notify Landlord that a policy is due to expires at least (30) days prior to such expiration. Landlord shall not be required to maintain insurance against thefts within the Leased Premises. 10. Si~ms. Following Landlord's consent, Tenant shall have the right to place on the Leased Premises, at locations selected by Tenant, any signs which are permitted by applicable zoning ordinances and private restrictions. Landlord may refuse consent to any proposed signage that is in Landlord's opinion too large, deceptive, unattractive or otherwise inconsistent with or inappropriate to the Leased Premises or use of any other tenant. Landlord shall assist and cooperate with Tenant in obtaining any necessary permission from governmental authorities or adjoining owners and occupants for Tenant to place or construct the foregoing signs. Tenant shall repair all damage to the Leased Premises resulting from the removal of 3 signs installed by Tenant. Landlord will remove and pay for all signs from previous tenant if previous tenant fails to remove. 11. Entry. Landlord shall have the right to enter upon the Leased Premises at reasonable hours (Monday through Friday 8:00 a.m. to 5:00 p.m.) to inspect the same, provided Landlord shall not thereby unreasonably interfere with Tenant's business on the Leased Premises. 12. Parkina. During the term of this Lease, Tenant shall have the exclusive use in common with Landlord, their guests and invitees, of the non-reserved common automobile parking areas, driveways, and footways on the Leased Premises, subject to rules and regulations for the use t~ereof as prescribed from time to time by Landlord. Landlord reserves the right to designate parking areas within the Leased Premises, for Tenant and Tenant's agents and employees. For such purpose Tenant shall provide Landlord with a list of all license numbers for the cars owned by Tenant, its agents and employees. Separated structured parking located about the Leased Premises is reserved for Tenant. 13. Restrooms. During the term of the Lease Landlord agrees to make available adequate restroom facilities in the common areas of the Lease Premises and to provide weekly janitorial services to attend to said restroom facilities, at Landlord's expense. 14. Damaae and Destruction. Subject to Section 9A. above, if the Leased Premises or any part thereof or any appurtenance thereto is so damaged so that the resulting defects cannot be used for Tenant's purposes, the Tenant shall have the right within ninety (90) days following damage to elect by notice to Landlord to terminate this Lease as of the date of such damage. In the event of minor damage to any part of the Leased Premises, and if such damage does not render the Leased Premises unusable for Tenant's Purposes, Landlord shall promptly repair such damage at the cost of the Landlord. In making the repairs called for in this paragraph, Landlord shall not be liable for any delays resulting from strikes, governmental restrictions, inability to obtain necessary materials or labor or other matters which are beyond the reasonable control of Landlord. Tenant shall be relieved from paying rent and other charges during any portion of the Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for Tenant's purposes. Rentals and other charges paid in advance for any such periods shall be credited on the next ensuing payments, if any, but if no further payments are to be made, any such advance payments shall be refunded to Tenant. The provisions of this paragraph extend not only to the matters aforesaid, but also to any occurrence which is beyond Tenant's reasonable control and which renders the Leased Premises, or any appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in part, for Tenant's Purposes. 15. Default. If default shall at any time be made by Tenant in the payment of rent when due to Landlord as herein provided, and if said default shall continue for fifteen (15) days, or if default shall be made in any of the other covenants or conditions to be kept, observed and performed by Tenant, and such default shall continue for thirty (30) days without correction thereof then having been commenced and thereafter diligently prosecuted, Landlord may declare the term of the Lese ended and terminated by giving Tenant written notice of such intention and if possession of the Leased Premises is not surrendered, Landlord 4 may reenter said premises. Landlord shall have, in addition to the remedy above provided, any other right or remedy available to Landlord on account of any Tenant default, either in law or equity. Landlord shall use reasonable efforts to mitigate its damages. 16. Quiet Possession. Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder, Landlord will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Leased Premises during the term of this Lease. 17. Condemnation. If any legally, constituted authority condemns the premises or such part thereof which shall make the Leased Premises unsuitable for leasing, this Lease shall cease when the public authority takes possession, and Landlord and Tenant shall account for rental as of that date. Such termination shall be without prejudice to the rights of either party to recover compensation from the condemning authority for any loss or damage caused by the condemnation. Neither party shall have any rights in or to any award made to the other by the condemning authority. 18. Subordination. Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust or other lien or hereafter arising upon the Leased Premises, or upon the premises and to any renewals, refinancing and extensions thereof, but Tenant agrees that any such mortgagee shall have the right at any time to subordinate such mortgage, deed of trust or other lien to this Lease on such terms and subject to such conditions as such mortgagee may deem appropriate in its discretion. Landlord is hereby irrevocably vested with full power and authority to subordinate this Lease to any mortgage, deed of trust or other lien now exiting or hereafter placed upon the Leased Premises of the Building, and Tenant agrees upon demand to execute such further instruments subordinating this Lease or atoning to the holder of any such liens as Landlord may request. In the event that Tenant should fail to execute any instrument of subordination herein required to be executed by Tenant promptly as requested. Tenant hereby irrevocably constitutes Landlord as its attorney-in-fact to execute such instrument in Tenant's name, place and stead, it being agreed that such power is one coupled with an interest. Tenant agrees that it will from time to time upon request by Landlord execute and deliver to such persons as Landlord shall request a statement in recordable form certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as so modified), stating the dates to which rent and other charges payable under this Lease have been paid, stating that Landlord is not in default hereunder (or if Tenant alleges a default stating the nature of such alleged default) and further stating such other matters as Landlord shall reasonably require. 19. Record Keepina and Reconciliation. A. Both Landlord and Tenant agree that each shall keep accurate records for the purposes of accountability to each other in their perspective roles as they relate to Sections 6 and 7 of this Lease Agreement. The Landlord shall track the monthly utility costs for the operation of the Leased Premises and the Tenant shall track the costs of all improvements made to the building situated on the Leased Premises. Each shall meet at least twice a year to review, confirm, and mutually accept their respective credits. At the time of reconciliation both parties may also agree to a cash payment in lieu of additional credits, if the amount of the accumulated credits exceeds $10,000 at the time of any reconciliation. B. Not withstanding the above, the Landlord also agrees to reimburse the Tenant for actual out of pocket expenses incurred by Tenant in support of the agreed to services which are delivered in accordance with this Agreement. 5 20. Notice. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United States mail addressed as follows: If to landlord: City of la Porte, Texas Attention: City Manager 604 West Fairmont Parkway, La Porte, Texas 77571 Ifto Tenant: Economic Alliance Houston Port Region Attention: President/CEO Landlord and Tenant shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other party. 21. Brokers. Tenant represents that Tenant was not shown the Premises by any real estate broker or agent and that Tenant has not otherwise engaged in any activity which could form the basis for a claim for real estate commission, brokerage fee, finder's fee or other similar charge, in connection with this Lease. 22. Waiver. No waiver of any default of Landlord or Tenant hereunder shall be implied from any omission to take any action on account of such default if such default perSists or is repeated, and no express waiver shall affect any default other than the default specified in the express waiver and that only for the time and to the extent therein stated. One or more waivers by Landlord or Tenant shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. 23. Memorandum of Lease. The parties hereto contemplate that this Lease shall not be filed for record, but in lieu thereof, at the request of either party, Landlord and Tenant shall execute a Memorandum of Lease to be recorded for the purpose of giving record notice of the appropriate provisions of this Lease. 24. Headinas. The headings used in this Lease are for convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this Lease. 25. Successors. The provisions of this Lease shall extend to and be binding upon Landlord and Tenant and their respective legal representatives, and assigns. 26. Consent. Landlord shall not unreasonably withhold or delay its consent with respect to any matter for which Landlord's consent is required or desirable under this Lease. 6 27. Performance. If there is a default with respect to any of Landlord's covenants, warranties or representations under this Lease, and if the default continues more than fifteen (15) days after notice in writing from Tenant to Landlord specifying the default, Tenant may, at his option and without affecting any other remedy hereunder, cure such default and deduct the cost thereof from the next accruing installment or installments of rent payable hereunder until Tenant shall have been fully reimbursed for such expenditures at a rate equal to twelve percent (12%) per annum. If this Lease terminate prior to Tenant's receiving full reimbursement, Landlord shall pay the unreimbursed balance plus accrued interest to tenant on demand. 28. Final Aareement. This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereo is Agreement may be modified only by a further writing that is duly executed by both parties. o ,the parties have executed this Lease as of the day and year first above written ex"') I.' ,. /' t [z.rJ2/lJ 7 Exhibit A Years 1 to 3 of Lease Agreement In years 1 to 3 of the Lease Agreement and in consideration of the deliverables listed below the Landlord will pay all utilities and services defined as: Electricity, Gas, Water/SewerlTrash, Security Alarm, Extermination Control and Janitorial (including janitorial services in accordance with the terms listed in Section 13. "Restrooms", of the Lease Agreement). The payment of utilities and services will be as a credit against the deliverables provided by Tenant. However, in any case the credit given shall not exceed $8,333.00 per year. Taraeted for 2008 - Business Retention Policv and Systematic Implementation Contractual Fee - $5000 Service Provided - By August 2008 (Fee amount based upon benchmarking of other local similar programs) . Research for Plan Development (will include interviews and surveys) . Compilation of Initial Plan Draft . Facilitation of Stakeholders to Help Bring Consensus and Final Adoption. Taraeted for 2008 - Economic Development Compliance and Alianment Facilitation Estimated Contractual Fee - $12,000 Period Service Provide - Over Six Month Period (Fee amount based upon benchmarking of other local similar programs) . Provide a workshop for multi departments and commissions to explore the city's overall economic development process with the goal to identify synergies and alignment opportunities among Elected City Leaders, 48 Corporation Board Members, Planning and Zoning Commission Members, and Main Street Commission Members. The work can be used as a resource for any future strategy setting by the City of La Porte. . Prior to the workshop, work hand in hand with the Economic Development Coordinator of the City of La Porte to implement a Pre-Workshop S.W.O.T. analysis survey (Strengths, Weaknesses, Opportunities and Threats) among the leaders mentioned above. . Provide a summary report of the SW.O.1. analysis survey for the workshop . Includes hosting meetings and helping with facilitation expertise. Onaoina Each Year - Small Business Retention Provided through December 31, 2008 Contractual Fee = $8000 (Fee amount based upon benchmarking of other local similar programs) . Monthly Visitation for Feedback with at Least Two La Porte Businesses . Provide support to Main Street Coordinator in Exploring Incentive Strategies designed for Main Street growth. 8 Exhibit B Years 4 to 10 of Lease Agreement In years 4 to 10 of the Lease Agreement it is recognized that the Tenant continues to accrue the same obligation for off-set of the additional lease space provided to the Tenant by the Landlord in accordance with Section 2 C. of the Lease Agreement. It is also recognized that continuing in years 4 to 10 of the Lease Agreement that the value of the services provided and the leasehold improvements made for and on behalf of the Landlord is anticipated to exceed the off-set space credit of $8,333.00 annually. This excess value is recognized and accepted by the Landlord as monetary credits that will be due the Tenant unless this lease is otherwise terminated during the term of the Agreement and if so, the provisions of Section 7 B. of the Lease Agreement shall apply. Therefore, in consideration of the leasehold improvements and the services listed below, the City of La Porte will continue to pay all utilities and services defined as: Electricity, Gas, Water/Sewer/Trash, Security Alarm, Extermination Control and Janitorial (including janitorial services in accordance with the terms listed in Section 13. "Restrooms", of the Lease Agreement), until such time as both parties have satisfied their obligations under this Lease Agreement or a new Lease Agreement is executed. Onaoina Each Year - Small Business Retention Provided through December 31, 2008 Contractual Fee = $8000 (Fee amount based upon benchmarking of other local similar programs) . Monthly Visitation for Feedback with at Least Two La Porte Businesses . Provide support to Main Street Coordinator in Exploring Incentive Strategies designed for Main Street growth 9 Exhibit C Monetary Value, Credits, Terms, Other Defined In accordance with Section 6."Alterations and Improvements", of this Lease Agreement, the Landlord and Tenant agree on the following with respect to the monetary value, credits, and terms of the leasehold improvements: Credit Leasehold Improvements by Tenant are a credit to the Tenant (+) Oeliverables/Services Provided by Tenant are a credit to the Tenant (+) Additional space provided by Landlord to Tenant is a credit to the Landlord (-) Utilities paid by Landlord are a credit to the Landlord (-) Equal (=) Total balance due to Tenant by Landlord Value To insure proper credit to the Tenant by the Landlord, when making any improvements to the building the Tenant will insure that work completed will be verified by sworn affidavit and certification from the Contractor/Builder as to the work scope of work completed and the net present value of the work, including the prevailing wages for the labor utilized. Terms All credits due to Tenant for building improvements at 908 Main and for 912 Main fayade and/or building improvements are forfeited at the end of the term of this lease if another lease is not executed by the parties. Other Landlord has been notified and understands that the Tenant intends, with City Council approval, to make available to the Landlord funds for 912 Main for fac;ade and/or building improvements. Landlord hereby agrees to give additional monetary credits to the Tenant over the term of this lease in an amount not to exceed the monies given or agreed to in writing by both parties for such fac;ade and/or building improvements. Such credit due to the Tenant by the Landlord for the 912 Main location will be addressed under separate written contract agreed to by both parties 10 7 RE UEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requeste Appropriation Source of Funds: 015 (eIP) Requested By: Department: Plannine: Account Number: 015-9892-859-5120 Report: ....K- Resolution: _Ordinance: ....x....- Amount Budgeted: $91,000.00 Amount Requested: YES Exhibits: Letter of Request for Amendment Budgeted Item: Ordinance Contract Amendment with Harris County Draft Proposal from Sheila Frye and Associates SUMMARY & RECOMMENDATION In August 2006, City Council approved a contract with Harris County to accept $457,300 in HUD funding for the construction of five (5) new affordable homes as part of the Northside Neighborhood Project. Two of the five homes are nearing completion and a notice to proceed has been issued for the remaining three homes. During initial coordination with the project managers from Harris County, it was believed that County, using their downpayment assistance program, would handle the processing of the applicants and the closing ofthe homes since the City of La Porte would only be handling the construction and marketing of the homes. As applicants were being referred to Harris County, it became apparent that additional assistance would be needed to successfully qualify families to occupy the homes in a timely manner. City Staff suggested that Harris County reallocate a portion of the required City match cash payment to allow La Porte to hire a consultant to assist with the closings. Letter of request is attached as exhibit I Staff solicited a professional services proposal from Sheila Frye and Associates to perform qualifying, educational and closing services for the five HOME project residences. Ms. Frye was instrumental in closing the first eleven homes in the PY 2002 Grant. For the sum of $12,500, Ms Frye's firm will qualify the applicants, provide the required educational instruction and manage the closings for the five homes in the PY 2006 grant. In the spirit of cooperation, Harris County has amended our contract to reduce the 25% match requirement by $12,500 in order for the City of La Porte to hire a consultant. There is, therefore, no impact to the budget since the bottom line expenditures do not change; only realigned. Staff recommends that City Council approve the ordinance to accept the amended contract provisions with Harris County to reduce the match requirement and direct the City Manager to execute a contract with Sheila Frye and Associates to process qualified applicants to complete the PY 2006 HOME grant program. The program ending date is August 31, 2008. The project addresses are: 211 North 1st Street (Lots 23-24, Block 62, La Porte), 216 North 2nd Street (Lots 3-4, Block 62, La Porte), 207 North 2nd Street (Lots 21-23, Block 63, La Porte), 210 North 6th Street (Lots 9-11, Block 66, La Porte), 224 North 6th Street (Lot 3-4, Block 66, La Porte) tt/o~ CITY OF LA PORTE 604 W. Fairmont Parkway, la Porte, TX 77571 www.ci.la-porte.tx.us Phone: (281) 471-5020 I Fax (281) 471-5005 January 10, 2008 Mr. David B. Turkel Director, Harris County Community and Economic Development Department 8410 Lantern Point Dr. IIouston, TJ( 77054 Re: CEDD Project-PY 2006, City of La Porte - Northside Neighborhood Project, Phase ll, HOME Grant # 2006-0050 Dear Mr. Turkel, Attached at enclosure 1 is a proposed amendment to the construction budget submitted with our grant proposal for the PY 2006 HOME grant program. The City of La Porte is requesting an amendment in order to fund marketing and closing efforts as the homes are completed. The justification for this proposal is as follows: The first two of the five homes are nearing completion and a notice to proceed has been issued for the remainder. It is anticipated that the project will be completed by July 31, 2008. It is an advantage to the future citizens of La Porte who will apply for these homes and for County downpayment assistance to have step-by step guidance throughout the application process. In this manner, the City of La Porte hopes to avoid some of the frustration and confusion experienced by the applicants and eventual home owners who took advantage of the PY 2002 grant. As such, the City will entertain a proposal from a consultant to render customized assistance in marketing, and for educating and qualifying the applicants for the PY 2006 homes. The resulting amendment request is for $12,500 to be transferred from the construction activities account within the match portion of the budget, to the marketing and listing account. The approval of this amendment would reduce the construction portion to $100,575 and shift the subtracted amount of $12,500 to the marketing portion of the City-match budget. The bottom line of$114,325 for the City match of25% is not affected by this amendment. need anything further, the point of contact for the City of La Porte is Wayne J. Sabo, irector, at 281-470-5056. I Enclosure: as stated Cc: Department File EXHIBIT B BUDGET ( The City of La Porte Northside Housing Affordable Single-Family New Construction Project Maximum Amount to be Paid Under this Agreement. It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed FOUR HUNDRED FIFTY SEVEN THOUSAND THREE HUNDRED DOLLARS and 00/100 ($457,300.00). Project Budget '<'i:~ '(;;:;,~t~~:'~~, :;:f~1;~8~:';:f/ ,. .;~;':'};::[tI~t;i:" Description )~hiL%:l;J~;;;[~~i~;~~I;;~:;iJi personnel Non Person nel Subtotal ( $0.00 $0.00 $0.00 $452,300.00 $5,000.00 $0.00 $0.00 $0.00 100,575.00 $1,250.00 Down Payment Assistance Acquisition Rehabilitation New Construction Developer Fee 10%) De.velopmfJnt Financing Savings Coilstmction Financing Savings Marketing & Listing $0:00 . $O.Ob $0.00 $12,500.001 . $114,325.00 $114,325.00 Subtotal .r:',\\~~Jrlt~I~~~~~eIt.i~t~~r;;)3~ri(:(~~: ~. ",~~ j~ $0,00 $0.00 $0.00 $0.00 $0.00 $457,300.00 Page 26 of 57 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $55:2; 875. 0 $0.00 $6,250.00. $0.00 $0.00 $0.00 $0:00 $0.00 $12 ,500.0 $O.QD, $571,625.00 $0.00 $571,625.00 Enclosure 1 ORDINANCE NO. 2006-2936-A AN ORDINANCE AMENDING A CONTRACT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT FOR THE HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM, BY REDUCING THE CITY'S MATCHING CONTRIBUTION BY $12,500; FROM $42,203.00 TO $29,703.00; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPUANCE 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 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 reduces the previous appropriation of $42,203.00 by $12,500.00, for a sum of up to $29,703.00 from Capital Improvement Account Number 015-9892-859-5120, to fund said Home Investment Partnership (HOME) Program. 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 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. ORDINANCE NO. 2006-2936-A 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 j rtJ-- day of ~'Y ,2008. CITY OF LA PORTE By: ~y~ Mayor ATTEST: LjY/0JitdJd/ City Secretary APPROVED: <<~r~ City Attorney HARRISCQUNTY,TEXAS COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT RECEIVED Community Development Division 8410 Lantern Point Dr. Houston, Texas 77054 Tel (713) 578-2000 David B. Turkel Director February 1, 2008 Mr. Ron Bottoms, City Manager City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 FEB U~) CITY MANAGER'S OFFICE Re: Project No. 2006-0050, Northside Neighborhood Project Contract Agreement First Amendment Dear Mr. Bottoms: Please see the enclosed First Amendment to the Agreement between Harris County and the City of La Porte for the Northside Neighborhood Affordable Housing Project. The Harris County Community and Economic Develo~ment Department seeks to have the amendment approved on Commissioners Court February 19t agenda. Upon execution, a recorded copy will be returned to you. Please sign both originals and return both to Sally Bakko by Wednesday, February 13, 2008. Your assistance is very much appreciated. Sincerely, {b~~i- Grants Management Affordable Housing Manager J:\gmshare\QAlAffordableHollsingTeam(2)\Projects\CityofLaPorte\NorthsideHollsingII\Contracts\First Amendment\City of La Porte J st Amendment Cover Letter.doc , l J. J ,,/1; , ~' I n f\ 'f l'~':;) -.,....r* HARRIS COUNTY, TEXAS COMMUNITY SERVICES DEPARTMENT David B. Turkel Director Daphne Lemelle Community Development Director Office of Housing & Community Development 8410 Lantern Point Drive Houston, Texas 77054 Tel (713) 578-2000 Fax (713) 578-2090 Mr. Ron Bottoms, City Manager City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 RECEIVED MAR J 9 2008 CITY MANAGEWS OFFICE ' March 17, 2008 Re: Project No. 2006-0050, Northside Neighborhood Project Contract Agreement First Amendment Dear Mr. Bottoms: Please find enclosed a recorded copy of the executed First Amendment to the Agreement between Harris County and the City of La Porte for the Northside Neighborhood Affordable Housing Project. We continue to look forward to working with you in the success of this project so please contact our office if there are any additional concerns. If you have any questions, please contact Sally Bakko at (713) 578-2211. Sincerely, Dwight Grants anagement Affordable Housing Manager o;:J~ HA~SCOUNTY,TEXAS COMMUNITY SERVICES DEPARTMENT David B. Turkel Director Daphne Lemelle Community Development Director Office of Housing & Community Development 8410 Lantern Point Drive Houston, Texas 77054 Tel (713) 578-2000 Fax (713) 578-2090 February 22, 2008 County Judge Emmett and Commissioner Lee, Garcia, Radack and Eversole AGENDA LETTER Please consider the following item on the Commissioners Court Agenda for March 4, 2008: Approval of the attached First Amendment to the Agreement, prepared by the County Attorney, between Harris County and The City of La Porte for The Northside Neighborhood Single-Family Housing Project. The amendment revises the amount of match funds to be provided. The subject project is located in the City of La Porte, Harris County, Texas, in Precinct 2. Thank you for your assistance with this request. Vote of the Court: Yes No Abstain I 0 D . Judge Emmett Comm. Lee B ~ Comm. Garcia Comm. Radack D Comm. Eversole 0 DBT/erw/dw/sb David B. Turkel, Director Community and Economic Development :::r Department "> ::2: :t,. .::r: q;:t>- 52;~; ::;") ,~r; ...~ --i C-') ,,-. ;;~~ Presented to Commissioner's Court ::s -,( S9 c;, tr'/ V> <:;) co -., 1"""1 CJ::J Iv -.J \j'S- eo \ \ ? ~ \ c9~'1::, f\ "'(,,,,) .::c.. ~'~ n r' 9:. l. \ G\S:. '--.U'l-v-..w"\ '~'f'n \f~:)- (~~' b ~ ~ t.t'; \ j -'. ( {' '" ". ", ,..~"", .""" " .~. v ..,/ c' ::1'-"'" ' .,- ~." MAR 0 ~"2008 APPROVE L-/ ,~ Recorded' Vol- Page (...;> 0) ,,-:::..\.., d . 0Ui~ FIRST AMENDMENT TO AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE FOR THE NORTHSIDE NEIGHBORHOOD SINGLE-F AMIL Y NEW CONSTRUCTION PROJECT RECITALS WHEREAS, HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, hereinafter referred to as "Grantee," and the City of La Porte, a Texas body politic and corporate under the laws of the State of Texas, herein called the "Subre<;ipient", entered into an Agreement on August 22, 2006 to administer a HOME Investment Partnerships (HOME) Program project in a manner satisfactory to the County and consistent with any standards required as a condition of providing these funds. Such project includes the construction of five (5) single-family houses for very low and low-income families, which is known as the Northside Neighborhood Single-Family New Construction Project (hereinafter, the "Project"). WHEREAS, the Grantee and the Subrecipient desire to amend said Agreement in order to authorize the County to reduce the required amount of match received from the Subrecipient by an amount of $12,500.00. NOW, THEREFORE, the Grantee and the City of La Porte do mutually agree as follows: I. Exhibit A, Scope of Services, section III. ACTIVITIES, subsection D. MatchinQ Funds Requirement, of the original Agreement, which reads as follows: D. Matchinq Funds Requirement HOME Program funds used for Subrecipient construction activities are required to be matched according to 24 C.F.R. 3 92.218. The matching contribution must total not less than twenty-five percent (25%) of HOME funds expended. Eligible forms of matching contributions must be met in accordance with 24 C.F.R. 3 92.220. The Subrecipient's required matching contribution for this Project shall equal no less than $114,325.00. Is hereby amended to read as follows: D. MatchinQ Funds Requirement HOME Program funds used for Subrecipient construction activities are required to be matched according to 24 C.F.R. 3 92.218. Eligible forms of matching contributions must be met in accordance with 24 C.F.R. 3 92.220. The Subrecipient's required matching contribution for this Project shall equal no less than $101,825.00. II. EXHIBIT B, BUDGET The City of La Porte Northside Housing Affordable Single-Family New Construction Project Maximum Amount to be Paid Under this Agreement It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed FOUR HUNDRED FIFTY SEVEN THOUSAND THREE HUNDRED DOLLARS and 00/100 ($457,300.00). Project Budget Budget Summary Description HCCEDD Match Other Total Project Delivery Costs Personnel $0 $0 $0 $0 Non Personnel $0 $0 $0 $0 Subtotal $0 $0 $0 $0 Project Costs Down Payment Assistance $0.00 $0.00 $0.00 $0.00 Acquisition $0.00 $0.00 $0.00 $0.00 Rehabilitation $0.00 $0.00 $0.00 $0.00 New Construction $452,300.00 $113,075.00 $0.00 $565,375.00 HCPID Inspection $5,000.00 $1,250.00 $0.00 $6,250.00 Subrecipient Reserve Funds Developer Fee(10%) $0.00 $0.00 $0.00 $0.00 Development Financing Savinas $0.00 $0.00 $0.00 $0.00 Construction Financing Savinas $0.00 $0.00 $0.00 $0.00 Marketina & Listing $0.00 $0.00 $0.00 $0.00 Subtotal $0.00 $114,325.00 $0.00 $571,625.00 Project Budget Total $457,300.00 $114,325.00 $0.00 $571,625.00 2 Is hereby amended to read as follows: EXHIBIT B. BUDGET The City of La Porte Northside Housing Affordable Single-Family New Construction Project Maximum Amount to be Paid Under this Agreement It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed FOUR HUNDRED FIFTY SEVEN THOUSAND THREE HUNDRED DOLLARS and 00/100 ($457,300.00). Project Budget Budget Summary Description HCCEDD Match Other Total Project Delivery Costs Personnel $0 $0 $0 $0 Non Personnel $0 $0 $0 $0 Subtotal $0 $0 $0 $0 Project Costs Down Payment Assistance $0.00 $0.00 $0.00 $0.00 Acquisition $0.00 $0.00 $0.00 $0.00 Rehabilitation $0.00 $0.00 $0.00 $0.00 New Construction $452,300.00 $100,575.00 $0.00 $552,875.00 HCPID Inspection $5,000.00 $1,250.00 $0.00 $6,250.00 Subrecipient Reserve Funds Developer Fee(10%) $0.00 $0.00 $0.00 $0.00 Development Financinq Savinqs $0.00 $0.00 $0.00 $0.00 Construction Financinq Savinqs $0.00 $0.00 $0.00 $0.00 Marketinq & Listinq $0.00 $0.00 $0.00 $0.00 Subtotal $0.00 $101,825.00 $0.00 $559,125.00 Project Budget Total $457,300.00 $101,825.00 $0.00 $559,125.00 III. All other conditions of said original Agreement shall remain in full force and effect as originally written. 3 IN WITNESS WHEREOF, the Parties have executed this First Amended Agreement as of the _ day of MAR () 4 zeOB ' 2008. Harris County By: ~ En.t~5 L- ED EMMETT County Judge ~~~ DAVID TURKEL Director Harris County Community and Economic Development Department APPROVED AS TO FORM: MIKE STAFFORD ::U~jajJ) Q DOl1GLA P. RAY Assistant County Attorney Attest: Name: Title: ~ THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the day of !tAR 0 4 2IlOl , 2008, with the following members present, to-wit: Ed Emmett El Franco Lee Sylvia R. Garcia Steve Radack Jerry Eversole County Judge Commissioner, Precinct No. 1 Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 and the following members absent, to-wit: ~. quorum, when among other business, the following was transacted: , constituting a ORDER AUTHORIZING EXECUTION OF THE FIRST AMENDMENT TO AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE FOR THE NORTHSIDE NEIGHBORHOOD SINGLE-FAMILY NEW CONSTRUCTION PROJECT Commissioner introduced an order and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, carrying with it the adoption of the order, prevailed by the following vote: Yes No Abstain Judge Emmett 0 0 Comm. Lee 0 0 Comm. Garcia 0 0 Comm. Radack 0 0 Comm. Eversole 0 0 The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: R E C I TAL S: WHEREAS, HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, hereinafter referred to as "Grantee," and the City of La Porte, a Texas body politic and corporate under the laws of the State of Texas, herein called the "Subrecipient", entered into an Agreement on August 22,2006 to administer a HOME Investment Partnerships (HOME) Program project in a manner satisfactory to the County and consistent with any standards required as a condition of providing these funds. Such project includes the construction of five (5) single-family houses for very low and low-income families, which is known as the Northside Neighborhood Single-Family New Construction Project (hereinafter, the "Project"). Presented to Commissioner's Court 2 MAR 042008 APPROVE Recorded Vol- Page WHEREAS, the Grantee and the City of La Porte desire to amend said Agreement in order to authorize the County to extend the time of performance for a period of one year. NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS THAT: Section 1: The recitals set forth in this order are true and correct. Section 2: The Director of Harris County Community and Economic Development is authorized to execute an amendment to the Agreement on behalf of Harris County between Harris County and the City of La Porte to construct five (5) single-family homes located at 211 North 1st Street, 207 and 216 North 2nd Street, and 210 and 224 North 6th Street in the City of La Porte, Harris County, Texas, in Precinct 2. The First Amendment is attached hereto and made to part hereof for all purposes. Section 3: The Community and Economic Development Department and its director or his designee are authorized to take such actions and execute such other documents as they deem necessary or convenient to carry out the purposes of this order. 3 SHEILA FRYE & ASSOCIATES Housing Consultants 2208 Blodgett 8t. Houston, Texas 77004 January 9, 2007 Mr. Wayne Sabo Director of Planning City of LaPorte 604 W. Fairmont Parkway LaPorte, Texas 77571 Dear Mr. Sabo: Sheila Frye & Associates are pleased to submit our proposal for consideration to provide Housing to the city of LaPorte. We believe we can assist your city in enhancing your vision to provide quality services to the community you serve. With over 19 years in the affordable housing arena, there is no doubt that Sheila Frye & Associates(SF A) can make this happen. SF A proposes to provide our initial professional services for a fee not to exceed $12500. Additional services not identified in this proposal can be modified to meet your needs at no additional cost. I have attached for your information a description of my services that will be provided by my firm. If you have any questions or modifications, please do not hesitate to contact me at 713-521-3502. I truly look forward to working with you and your city to make dreams of homeownership for families come true that step through the doors of the City of LaPorte, Texas Sincerely, ~<-cY-~ Consultant Attachments City of LaPorte Professional Services SHEILA FRYE & ASSOCIATES (SFA) proposes to work with your organization team, in the following areas: · Develop appropriate marketing materials, flyers for distribution in both English and Spanish · Development and distribution of the flyer for all Homebuyer Education classes scheduled · Provide staff for the upcoming event in both English and Spanish to assist potential buyers and participant of the event · Market all 5 homes to community residents and community residents that attend the Homebuyer education class administered by SHEILA FRYE & ASSOCIATES affiliate ofNID-Housing Counseling Agency(HUD approved organization) · Assist each buyer with the purchase agreement with the seller/city or builder and selection of home · Work closely with the builder to determine purchase amounts, start of construction and end of construction · Provide Homebuyer education program at no cost to the buyer. Each buyer will be given a certificate that will allow access to Harris County Down Payment Assistance program. These classes will be at a minimum of 8 hours, all materials are Fannie Mae and HUD approved and will be provided by SF A · Provide access to credit counseling agencies for potential buyers in need of long term counseling services · Work closely with FRYE's Homeownership Center lenders to pre-screen clients before the selected lender takes loan application i,e. Capital One Bank, Liberty Bank and Wachovia Bank.....all Banks are on Harris County approved lenders lists · Provide monthly status report · Attend meeting concerning the agency development on an as needed basis · Work closely with the Director of Planning and Project/Program manager and Builders in the Development · Coordinate closing between City of LaPorte, Harris County, buyer and lender · Walk all closing documents to city for City manager or authorized party to sign and return to appropriate parties i.e., Harris county, title, etc. · Maintain copy of applicant file for City of LaPorte, Harris county and Frye & Associates to be handed over at the time of Project completion SHEILA FRYE & ASSOCIATES Housing Consultants 2208 Blodgett 8t. Houston, Texas 77004 CONSUL TING AGREEMENT THIS CONSULTING AGREEMENT ("Agreement") is entered into and by City of LaPorte and SHEILAFRYEASSOCIA TES ("SF A"). NOW, THERFORE, together the parties hereto agree as follows: 1. Provision of Services. Subject to the terms of this Agreement, City of LaPorte herby engages SF A to perform the services ("Services") set forth in Exhibit A attached hereto. SFA may, at SFA's discretion and at SFA's own expense, use employees or consultants to perform the Services under Agreement. 2. Term of Engagement. This Agreement shall be effective for ten months (10) as of February 14,2008 (the "Effective Date") and shall automatically terminate (the "Termination Date") on December 14,2008. 3. Termination. a. If for any reason SFA is unable to provide the Services, City of LaPorte may, at its option, terminate this Agreement by delivering thirty (30) days written notice in advance of the termination date. b. City of LaPorte and SF A each have the right to terminate this Agreement for any reason upon thirty (30) days written notice to the other party. c. This Agreement terminates automatically upon the occurrence of any of the following events: (i) Bankruptcy or insolvency of either party; or (ii) sale of the business. d. If this agreement is terminated by either party for any reason, City of LaPorte shall have no further obligation to make any payments, except for appropriate fees and expenses incurred by Consultant pursuant to Section 4 but unpaid prior the date of termination. 4. Compensation. a. The compensation for the Services to be performed hereunder is $12500.00. b. SF A will maintain complete books and records with reasonable detail of revenues and expenditures for inspection at reasonable times if deemed necessary by City of LaPorte 5. Expenses. SF A will incur all reasonable out-of-pocket expenses while performing the Services for the City of LaPorte. 6. Independent Contractor a. SF A enters into this Agreement as, and shall continue to be, an independent contractor. SF A is not an employee, partner, principal or agent of City of LaPorte, nor shall SF A possess any right of authority to bind City of LaPorte in any manner without the consent of City of LaPorte. SF A shall not be entitled to any benefits that may be accorded to City of LaPorte employees, including workers' compensation, employee benefit plans, disability insurance, vacation or sick pay. 7. Indemnification. a. SF A hereby agrees to indemnify, defend and hold harmless City of LaPorte officers and directors from and against any and all claims, including without limitations any claims by employees, consultants, sub- contractors, or agents of SF A, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest and penalties, and reasonable attorneys' fees and costs, that City of LaPorte may incur or suffer and that result from, or are related to, any breach of any representation or warranty in this Agreement or breach or failure of SF A, its employees, consultants or subcontractors, to perform any covenant or agreement contained in this Agreement. 8. General Provisions. a. Entire agreement; Modification. This Agreement contains the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior oral or written understanding and agreements. No provision of this Agreement may be changed, extended, waived, modified, discharged or terminated, except by a written instrument executed by the parties hereto. b.Notice. Any notice, payment, report or any other communication required or permitted to be given by one party to the other party by this Agreement shall be in writing, shall be deemed effective upon receipt and shall be either (a) served personally on the other party or by facsimile to the facsimile number indicated below, (b) sent by express, registered or certified first-class mail, postage prepaid, addressed to the other party by like notice, or (c) delivered by commercial courier to the other party, at the following address: TO City of LaPorte Mr. Ron Bottoms City Manager 604 W. Fairmont Parkway LaPorte, Texas 77571 FROM: Sheila Frye and Associates 2208 Blodgett St. Houston, TX. 77004 713-521-3502 Phone 713-523-4660 Fax IN WITNESS WHERE~~thiS Consulting g eement has been executed by each of the parties e cti the J day of , 2008. City ms, City Manager BY: Name: Title: SHEILAFRYEASSOCIA TES By: of~b cr~ Name: ~'hel/~ Frye Title: ,/r ~~ i I~ Exhibit A City of LaPorte Professional Services SHEILA FRYE & ASSOCIATES (SFA) proposes to work with your organization team, in the following areas: . Develop appropriate marketing materials, flyers for distribution in both English and Spanish . Development and distribution of the flyer for all Homebuyer Education classes scheduled . Provide staff for the upcoming event in both English and Spanish to assist potential buyers and participant of the event . Market all 5 homes to community residents and community residents that attend the Homebuyer education class administered by SHEILA FRYE & ASSOCIATES affiliate ofNID-Housing Counseling Agency(HUD approved organization) · Assist each buyer with the purchase agreement with the seller/city or builder and selection of home · Work closely with the builder to determine purchase amounts, start of construction and end of construction · Provide Homebuyer education program at no cost to the buyer. Each buyer will be given a certificate that will allow access to Harris County Down Payment Assistance program. These classes will be at a minimum of 8 hours, all materials are Fannie Mae and HUD approved and will be provided by SF A · Provide access to credit counseling agencies for potential buyers in need of long term counseling services · Work closely with FRYE's Homeownership Center lenders to pre-screen clients before the selected lender takes loan application i,e. Capital One Bank, Liberty Bank and Wachovia Bank.....all Banks are on Harris County approved lenders lists . Provide monthly status report . Attend meeting concerning the agency development on an as needed basis . Work closely with the Director of Planning and Project/Program manager and Builders in the Development · Coordinate closing between City of LaPorte, Harris County, buyer and lender . Walk all closing documents to city for City manager or authorized party to sign and return to appropriate parties Le., Harris county, title, etc. · Maintain copy of applicant file for City of LaPorte, Harris county and Frye & Associates to be handed over at the time of Project completion 10 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Februarv 11,2008 Budl!et Requested By: Ron Bottoms Source of Funds: Department: Administration Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Rail Spur Agreement Amount Requested: Exhibits: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION Attached is a Rail Spur Agreement between the City of La Porte and Frontier Logistics, LLC and La Porte Real Property LLC for your consideration and approval. This rail spur utilizes a portion of the City's 5.98 acre tract that is currently leased to Flanagan Shipping and the North H Street right-of-way. The Flanagan lease contains a rail spur option that will need to be exercised to support this agreement. The term of the agreement is 80 years, with the payment to the city being $4.50/ft2 (currently estimated at around $900,000) - the actual payment will be determined based upon the fully engineered and coordinated rail design. A recent appraisal of the property placed the current value at $2.25/ft2. If approved there are several benefits to the city, including the possibility of displacing some of the port truck traffic with the expanded rail capacity, the creation of jobs, and increasing our tax base. The rail spur operations will be limited to 10:00 p.m. to 4:00 a.m. and are enforceable per this agreement. ..L~)8 Date RAIL SPUR AGREEMENT STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ This Agreement made Logistics, LLC, a Texas and entered into by and between Frontier limited liability company, and La Porte Real Property, LLC, a Texas limited liability company, of Harris County, Texas, hereinafter referred to as "Owners", and the CITY OF LA PORTE, a municipal corporation, of Harris County, Texas, hereinafter referred to as "City", Recitations 1. City is the owner of a 5.98 acre tract of land, situated near the intersection of North Broadway Street and East Barbours Cut Boulevard, in the City of La Porte, Harris County, Texas. The legal description of said tract of land (hereinafter referred to as "Property") is attached as Exhibit "A", to a Lease Agreement, by and between City, as Landlord, and James J. Flanagan Shipping Corporation, a Texas business corporation, as Tenant. A true and correct copy of said Lease Agreement is attached hereto as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. 2. Article 3, on page 5 of said Lease Agreement, provides for a reservation by the Landlord to reduce the area of the Leased Premises, to accommodate a rail spur from the existing railroad tracks on the east side of the Property, across the south portion of the property and continuing on the former North "H" Street right-of-way. In the event that the City, as Landlord, exercises FINAL DRAFT: 02.11.08 such option, (a) the Landlord shall provide the Tenant with six months written notice of its intention to reduce the area of the Leased Premises, and (b) the area of the Leased Premises shall be reduced as shown on Exhibit "A-1" attached to said Lease Agreement, and the rental thereunder shall be reduced on a pro rata square foot or acreage basis, and City, as Landlord, agrees to reimburse the Tenant for the remaining undepreciated value of Tenant's improvements on that portion of the Leased Premises, based on a 15 year level amortization from the Commencement Date of said Lease Agreement, which was January 1, 1997. 3. Owners own substantially all the real property which abuts the right-of-way of North "H" Street in the City of La Porte, extending from the west right-of-way line of North Broadway Street, to the east right-of-way line of North 8th Street, in the City of La Porte. Owners desire to have the City of La Porte exercise the rail spur option, described in Paragraph 2, above. Owners request City to grant Owners a Rail Easement in form attached hereto as Exhibit "B", incorporated by reference herein, and made a part hereof for all purposes. WHEREFORE, in consideration of the paYment by Owners to City, of a cash sum, which shall be calculated by multiplying (i) that portion of the Railroad Easement located on the property described on Exhibit "A", attached hereto, and (ii) that portion of the Railroad Easement located on the right-of-way of North "H" Street; multiplied by $4.50 per square foot, payable as follows, to-wit: A. Owners shall, upon the execution hereof, make an initial deposit of Two Hundred Thousand Dollars ($200,000.00), to 2 the City, which shall be fully credited by the City to the total cash consideration hereunder; in the event that Owners are unable to secure permits from TCEQ and the other governmental agencies and utilities having jurisdiction over the property, the City shall refund said deposit to Owners, less Twenty-five Thousand Dollar ($25,000.00) thereof, to reimburse City for its administrative costs hereunder; and B. the balance of the consideration shall be paid by Owners to the City of La Porte, as hereinafter provided; and in further consideration of the mutual agreements herein set forth, Owners and city agree as follows: 1. Owners shall, at their sole cost and expense, with the prior written approval of City, engage the services of an engineer / surveyor with experience in railroad track design and construction matters, to prepare a survey plat, and metes and bounds description, with the survey plat showing the location of the proposed railroad spur, in accordance with Exhibit "A-l", to the Lease Agreement attached to this Agreement as Exhibit "A", and the portion thereof connecting to a rail easement in the right-of- way of North "H" Street. Upon receipt and approval of said plat and metes and bounds description, City, as Landlord, agrees to give notice to the Tenant under said Lease Agreement, exercising the option hereinabove described. Owners agree to reimburse and save and hold harmless City for the loss in rental, and any other claims for reimbursement and damages, by Tenant under said Lease Agreement, as a result of the exercise of said option by City. Prior to the exercise of said option by City, Owners and City shall 3 enter into a Rail Easement Agreement on the tract of land, based on the plat and metes and bounds description obtained as provided herein. A copy of the proposed Rail Easement Agreement is attached hereto as Exhibit "B", incorporated by reference herein, and made a part hereof for all purposes. 2. City plans to accept bids for the sale of the remainder of the 5.98 acre tract of land, after the legal description of the rail spur option tract has been determined. City has obtained an appraisal of the entire tract, showing its fair market value as $2.25 per square foot. Owners agree to indemnify and hold harmless City, from any loss of value of the remaining tract to be sold by City, for a bid price of less than $2.25 per square foot. 3. Owners agree to prepare and file with City, on or before the 1st day of August, 2008, a development/business plan which shall address the planning and zoning issues that will be involved with development of the rail spur, from the existing railroad tracks, across the Property, and the properties owned by Owners contiguous to North "H street. Nothing contained in this Agreement or in the Rail Easement, shall be construed as a grant of zoning authorization for use of rail access to any of Owners' properties adjacent to the Rail Easement which property is not zoned HI, or a PUD with special exceptions for rail service. 4. Attached to this Agreement as Exhibit "C" is a list of un-resolved violations of City's ordinances, on certain of the properties owned by certain of the Owners. All of these violations shall be abated by the respective Owners, to the satisfaction of City, in accordance with the provisions of Exhibit "C". 4 5. All notices and other communications given pursuant to this Rail Spur Agreement shall be in writing and shall either be mailed by first class United States mail, postage prepaid, registered or certified with return receipt requested, and addressed as set forth in this paragraph, or delivered in person to the intended addressee. Notice mailed in the aforesaid manner shall become effective three business days after deposit; notice given in any other manner, and any notice given to City, shall be effective only upon receipt by the intended addressee. purposes of notice, the address of For the (a) City shall be: City of La Porte 604 West Fairmont Parkway La Porte, TX 77571 Attention: City Manager (b) Owners shall be: Frontier Logistics, LLC 710 North Broadway La Porte, TX 77571 Attention: George Cook La Porte Real Property, LLC 1655 Louisiana Beaumont, TX 77701 Attention: Casey Crenshaw Each party shall have the continuing right to change its address for notice hereunder by the giving of 15 days' prior written notice to the other party in accordance with this paragraph. 5 6. Events of Default. Each of the following occurrences shall constitute an "Event of Default" by Owners under this Rail Spur Agreement: a. The failure of Owners to pay the monetary consideration provided for in this Rail Spur Agreement; and b. The failure of Owners to perform, comply with or observe any other agreement, obligation or undertaking of Owners, or any other term, condition or provision, of this Rail Spur Agreement, and the Rail Easement Agreement, and the continuance of such failure for a period of ten (10) days after written notice from City to Owners specifying the failure. Upon any Event of Default, City may, at City's option and in addition to all other rights, remedies, and recourses afforded City hereunder or by law or equity, do anyone or more of the following: a. Terminate this Rail Spur Agreement and Rail Easement Agreement, by the giving of written notice to Owners, in which event Owners shall pay to City upon demand, any monetary consideration then owed by Owners to City. b. Terminate Owners right to possession of the property described in Exhibit "A" of the Rail Easement Agreement. 7. If either the City or Owners initiate any litigation relating to this Rail Spur Agreement, the prevailing party in such litigation, shall be entitled to recover, in addition to all damages allowed by law and other relief, all court costs and reasonable attorneys' fees incurred in connection with such litigation. 6 ENTERED INTO this the 11th day of February, 2008. ATTEST: 0rJ_ ~-Y1,;/1 ~na A. {{~ City Secretary A7!:~ AS~O FORM: ~ I ~ /tobWV1 Kfiox W. Askins City Attorney itPf" / "OWNERS. Frontier Logistics, LLC By: ~~. N~me : 6V-;:.;:r'~ Lc.d L T~tle: C La Porte Real Property, LLC BY:<~ me: Title: By: 7 STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ NOTICE TO BUYERS, LESSEES, AND OCCUPANTS 5361.539, TEXAS HEALTH AND SAFETY CODE The City of La Porte, a municipal corporation, whose mailing address is 604 West Fairmont Parkway, La Porte, Texas 77571, the owner of land that overlies a closed municipal solid waste landfill facility, hereby gives written notice stating the former use of the facility as a solid waste landfill, the legal description of said former solid waste landfill facility being attached hereto as Exhibit "A" Tract 1, incorporated by reference herein and made a part hereof for all purposes, and does further give notice of the restrictions on the development or lease of said land imposed by Subchapter R, "Use of Land Over Municipal Solid Waste Landfills", of the Texas Health and Safety Code, reference to which is here made for all purposes. The City of La porte, a municipal corporation, the owner of said real property, has filed this notice for record in the office of the County Clerk of Harris County, Texas, as required by said ~361.539, Texas Health and Safety Co , under Harris County Clerk's File No. S236608. WITNESS OUR HANDS AND THE SE FIi<'BItUAlti, 2008. . A this .ll.... day of By: ATTEST: ~O.ttIWI Martha A. Gillett City Secretary AP~k)~ Knox W. Askins City Attorney STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ ~dta. 4Jhi s porte,t on instrument was acknowledged before me on the l~ day of , 2008, by Ron Bottoms, City Manager of the City of La behalf of said City, in the capacity herein stated. ~~ Notary Public, State of Texas Exhibit "A" - Notice Lease Agreement, by and between City, as Landlord, and James J. Flanagan Shipping Corporation, as Tenant. Exhibit "A" Rail Easement Agreement Exhibit "B" Current Violations of City Ordinances by Owners Not later than May 12, 2008: . In accordance with Code of Ordinances, Chapter 106, section 106-637, submit an application and General Plan for a special conditional use permit (SCUP), as required in a Planned Unit Development zoning District, to the Planning and zoning Commission for recommendation, and the City Council for approval, including, but not limited to, the removal of all shipping containers from Blocks 349, 350, 351 and 352, in violation of the Code of Ordinances, Chapter 106, Section 106- 521, Table A. Applications may be obtained and coordinated through the Planning Department. The General Plan shall conform to the requirements of City Ordinance No. 1444, section 4.01 and Appendix C. Upon approval of the SCUP: . Apply for a zoning permit for the entire site with the Inspections Division. . Submit a Major Development site Plan in accordance with Code of Ordinances, Chapter 106, section 106-637(c), and city Ordinance No. 1444 , Sect ion 4. 08 and Appendix E, to the Planning Department for review, and approval by the Planning and Zoning Commission. Exhibit "C" February 11,2008 Per City Attorney Knox Askins, the rail easement agreement is only being approved as to form. The other party will have to hire and engineer and the agreement will have to be brought back to Council for further approval in the future. The blanks will be filled in at that time. Martha Gillett City Secretary RAIL EASEMENT AGREEMENT STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ This Agreement made and entered into this J l-lt--ciay of ft:-B(~ ' 2008, by and between the CITY OF LA PORTE, a municipal corporation, of Harris County, Texas, (hereinafter referred to as "Grantor") and Frontier Logistics, LLC, a Texas limited partnership, and La Porte Real Property, LLC, a Texas limited partnership, (hereinafter collectively referred to as "Grantee"). WIT N E SSE T H: WHEREAS, Grantor is the owner of certain parcels of real property and the right-of-way of North "H" Street, situated in the County of Harris, State of Texas, more particularly described in various instruments filed for record in the Office of the County Clerk of Harris County, Texas, and with the legal descriptions as set forth in Exhibit "A" attached hereto (collectively the "property") ; WHEREAS, Tract 1 of Property has been de-certified as a public park by the State of Texas and the Federal Bureau of Outdoor Recreation; WHEREAS, Grantee is the owner of certain parcels of real property adjacent to Tract 2 of the Property, more particularly described in instruments filed for record in the Office of the County Clerk of Harris County, Texas (the "Adjacent Property"); FINAL DRAFT: 02.11.08 Exhibit nBn WHEREAS, Grantee is desirous of obtaining an easement on the Property for the purpose of laying, constructing, maintaining, inspecting, operating, using, monitoring, altering, repairing, replacing, changing the size and nature of, and removing, in whole or in part, certain railroad tracks accessing the Adjacent Property (the "Railroad Tracks"), in, on and under the Property; and WHEREAS, Grantor is willing to grant to Grantee the easement described below, on the terms and conditions hereinafter provided. NOW, THEREFORE, for and in consideration of the sum of Thousand Dollars ($ and other good and valuable considerations, the receipt and sufficiency of which are hereby expressly acknowledged, and for the further consideration of the mutual covenants and agreements contained herein, and intending to be legally bound hereby, Grantor and Grantee agree as follows: 1. The above preambles are incorporated herein by reference as if fully set forth herein. 2. Grantor does hereby create, grant, bargain, transfer, sell and convey unto Grantee an eighty (80) year easement with the option to Grantee to renew for as hereinafter provided, over, upon, under, through, in and across the Property, to have and to hold unto Grantee, its successors and assigns, for the benefit of the Adjacent Property, for the purposes of laying, constructing, installing, maintaining, inspecting, operating, using, replacing, monitoring, altering, repairing, changing the size and nature of, and removing at will, in whole or in part, the Railroad Tracks; such easement (the "Easement") shall run with the Property and Grantee's Adjacent Property, and is more particularly described in Exhibit "B" attached hereto and made a part hereof i provided, 2 however, railroad train operations crossing North Broadway Street shall be conducted only between the hours of 10:00 p.m. and 4:00 a.m. Grantee shall have the option to renew this Railroad Easement Agreement for an additional term to be agreed upon by the parties, upon the terms and conditions hereof. If Grantee chooses not to renew this Railroad Easement Agreement, it shall provide written notice to Grantor not later than six (6) months prior to the expiration of the current eighty (80) year term, or earlier than nine (9) months. Failure to provide such written notice shall cause this Rail Easement Agreement to renew automatically under the terms and conditions hereof. Rental for the additional agreed term, shall be paid upon the commencement thereof, and shall be based on Fair Market Value of the land, not including the improvements thereon, described on Exhibit "B" hereof. Fair Market Value shall be the value of the land only, not including the improvements, valued as a railroad easement, as determined by an appraisal by a qualified industrial appraiser with railroad easement appraisal experience, to be mutually selected by the parties. If the parties cannot agree on an appraiser, the appraiser shall be designated by the presiding Judge of the Harris County District Courts, acting in an administrative and not a judicial capacity. The results of the appraisal shall be binding on Grantor and Grantee, their successors and assigns, who shall equally share in the cost of the appraisal. 3. Grantee shall have the right to lay, construct, install, maintain inspect, operate, use, monitor, alter, replace, repair, change the size and nature of, and remove at will, in whole or in 3 part, the Railroad Tracks in the Easement as it deems necessary, in its sole discretion, from time to time. Grantee's use of the Easement shall be (i) in compliance with all applicable federal, state or local laws and regulations, and (ii) in a manner which will not unreasonably and materially interfere with the remainder of the North "H" Street right-of-way. Grantor advises Grantee that Exhibit "A", Tract I, is situated in the corporate limits of the city of Morgan's Point, and subject to the ordinances of the City of Morgan's Point, Texas. 4. All costs of engineering, design, permits, installing, contracting, using, maintaining, repairing or replacing the Railroad Tracks shall be borne by Grantee. S Grantee's proposed track alignment, profile and cross sections are as shown on a drawing by a Texas registered professional engineer, attached hereto as Exhibit "C" and made a part hereof. Grantor's prior written approval and consent to said engineer shall be obtained by Grantee. Grantor shall have the right of final approval of said plans and specifications. Grantee shall obtain necessary permit approvals from Grantor; the City of Morgan's Point; Harris County, Precinct 2; Harris County Flood Control District; and Houston Lighting & Power Company, or its successor. 6. GRANTEE HEREBY INDEMNIFIES GRANTOR AND HOLDS IT HARMLESS, FROM AND AGAINST ANY REASONABLE AND ACTUAL EXPENSES, CLAIMS, LOSSES, DAMAGES OR COSTS THAT GRANTOR INCURS AS A RESULT OF GRANTEE'S USE OF THE EASEMENT. 7. Grantor shall have the right and privilege to use the Property, at any time, in any lawful manner and for any lawful 4 purpose which is not inconsistent with and which does not unreasonably interfere with (i) Grantee's use and enjoyment of the Easement, and (ii) Grantee's rights, titles, interests, benefits and privileges under this Agreement. S. Subject to prior written approval of Grantor, whose approval shall not be unreasonably withheld, Grantee shall have the right from time to time to assign its rights and obligations under this Agreement, to a subsequent purchaser of Grantee's adjoining property, and any assignee shall be deemed to have assumed Grantee's obligations hereunder, and whereupon Grantee shall be relieved from all further obligations under this Agreement. Subject to prior written approval of Grantor, whose approval shall not be unreasonably withheld, Grantee shall have the right from time to time to assign to a corporate or other entity its rights and obligations under this Agreement, for the purposes of designing, constructing, and conducting operations under this Rail Easement Agreement. 9. Grantee has made a visual inspection of the Property and assumes the obligations of obtaining all governmental permits and approvals that are required for Grantee's intended use. Grantor agrees to cooperate with Grantee and assist it in obtaining such approvals and, to the extent that Grantor is the issuing authority of such approvals, Grantor agrees not to unreasonably withhold such approvals. Grantor warrants that the Property is subject to no current permits with respect to former use as a sanitary landfill. 10. Paragraph 3 has compliance with law provisions. Grantor has disclosed to Grantee that Tract 1 of the Property has previously been utilized by Grantor as a municipal sanitary 5 landfill. A notice to buyers, lessees, and occupants as required by ~361.539, Texas Health and Safety Code, is attached hereto as Exhibit "A" - Notice. Grantee assumes all risk of its proposed use of the Easement, which shall be consistent with Texas and Federal statutes and regulations touching upon permitted uses of former sanitary landfills. Grantee and Grantor understand and agree that Grantor has made no representations with regard to the environmental condition of the Property. Grantee assumes the risk that the geophysical condition of the Property is sufficient for Grantee's intended use. 11. Grantee shall have all rights, titles, privileges, interests and benefits necessary for the full enjoyment and use of the rights granted to Grantee under this Agreement. This Agreement is SUBJECT TO the terms and provisions of an Easement Agreement between Grantor and Houston Lighting & Power Company, over and across the south fifty feet (S.50') of Tract 1 of the Property. 12. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas and shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. 13. Notwithstanding any thing contained herein to the contrary, Grantee shall have no obligation to install or maintain the Railroad Tracks. In the event that no portion of the Railroad Tracks is installed by Grantee in the Easement within ten (10) years from the date hereof, this Agreement shall be void and of no further effect. 6 IN WITNESS WHEREOF, the parties have executed this instrument 1i!-aay of ~. 2008. the ATTEST: ~ /tPIttI a t a A~ Gillett City Secretary A~ AS. ~ORM: ^ .~7'J~ ~ Knox W. Askins J City Attorney By: By: "GRANTEER Frontier Logistics, LLC By: ~~ Name: ie".......~L.-- ~"- Title: Ct:c{ La Porte Real Property, LLC ~ Na . ~ ltl~: ~ 7 STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ On this the .ti-- day of fell , 2008, before me a notary public, the underslgned officer, p rsonally appeared Ron Bottoms, who acknowledged himself to be the City Manager of the City of La Porte, and that he as such City Manager being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the City of La Porte by himself as City Manager. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~Mate of Texas STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ On this the II day of ;;~/~~ ' 2008, before me a notary public, the undersigned officer, pe sonally appeared c..e',d~ ~dL , who acknowledged himself to be the Ce:o / of Frontier Logistics, LLC, a Texas limited liability company, and that he executed the foregoing instrument on behalf of said entity, for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ~~~~~~ Notary Public, State of Texas 11.t-:~':m~;-\. ROBERTTA K. MATTHEWS 'Ji'.'- '.~'io 'i ! : i Notary Public, State of Texas -...;j~r.;t.fI My Commission Expires '",,:,:.,,,, October 06, 2008 STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ On this the ~~ day of \=eJf)('Vlltfvt. ' 2008, before me a notary, public, the undersigned officer, personally appe~red ~~~~S(u4J , who acknowledged himself to be the ;J.,1'.p _~__ of La Porte Real Property, LLC, a Texas limited liability company, and that he executed the foregoing instrument on behalf of said entity, for the purposes therein contained. IN WITNESS WHEREOF, I hereunto seK ~~nd~tfficial seal. NotaTY Public, State of Texas ,.,'llf'" ..~~. NJ'\.:d \~!.... \~~. .";~,~r,.,\ KAREN LUKE MY COMMISSION EXPIRES November 19, 2011 I 8 LEGAL DESCRIPTION OF THE PROPERTY Tract 1 All of Blocks 474 and 475, Town of La Porte, a subdivision in Harris County, Texas, according to the map or plat thereof recorded in the Office of the County Clerk of Harris County, Texas, as reflected by instruments recorded in Volume 851, Page 544; Volume 7515, Page 455,; and Volume 7829, Page 623, Harris County Deed Records; and the ten foot (10') residue, being the westernmost ten feet (10') of Ninth Avenue in the City of Morgan's Point, Texas, adjacent to Block 474, Town of La Porte, Harris County, Texas; and the north one-half (N.1/2) of the former North "H" Street right-of- way, adjacent to the south boundary lines of said Blocks 474 and 475, Town of La Porte, Harris County, Texas, and extending from the GL&H Railroad right-of-way, as recorded in Volume 83, Page 243, Harris County Deed Records, to North Broadway Street. SUBJECT TO: An easement from the City of La Porte to Houston Lighting & Power Company, over and across the south fifty feet (S.50') of Tract 1. Tract 2 A ___ foot (__') Railroad Easement from and out of the right-of-way of North "H" Street, extending from the west right-of-way line of North Broadway Street to the east right-of-way line of North 8th Street, more particularly described by metes and bounds on Exhibit "B" attached hereto. Exhibit "A" Metes and Bounds Description of the Easement Exhibit "B" Drawing by a Texas Registered Professional Engineer Exhibit "e" ..,,,: 1.1 Air" . ~ ',\; -.rJ .Ii ., i,J ...& '''- "" '~~ ".:.a.:"""\-'....-!.(~.~~."'~ I' .~ I i 'I fj~J (~~_f.i ,,"j\! '1 ! ~;~~~:f:.~~~~~:y,~ ,~J:~:Fi:h:~\~~L~t!t~~ DRAWN BY: MUSSER 11/12/D7 NONE LEG N Elt,sling Railroad O"ned Trackage Proposed ~ail(aad Owned Trackage. _ _ _ _ _. Eltisling Industry Owned Trockage I Prapo.ed Jnd",.try Owned TrQckage - - - -+-- Future Induatry Owned Trockoge - - - - - - - Fiber Optlc Coble Railroad Righl Of Way Fence UNION PACIFIC RAILROAD /RM/ R.A. BCHAer'.R CO., INC. 4821 Highway 90 P.Oa 80. 1275 Broolul~lr., T.... 77423 1281) 382-4800 Fax (281) 934-3130 DATE: SCALE: CAD FilE: DRAWING NO.: CONCEPTUAL TRACK ALIGNMENT BARBOURS CoT lA PORTE, TEXAS 11 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: February 11.2008 Bud!!et Requested By: Ron Bottoms Source of Funds: Department: Administration Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Letter to Mayor and Council Amount Requested: Exhibits: Exhibits: Ordinance 2008- Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION With the election of Larry Cox to the School Board, the Civil Service Commission has had a vacancy since August 2007. Mr. Garcia is a long time resident of La Porte and has been a volunteer of various youth and high school associations and booster clubs and desires to return to community service. Action Required bv Council: Cons. onfrrming appointment of Michael A. Garcia to the Civil Service Commission with a term expiring on ust31 2010. I:/t ~ February 5, 2008 Hon. Mayor & City Council City of La Porte City Hall La Porte, Texas Gentlemen: I hereby appoint Michael A. Garcia Commission of the City of La Port 31, 2010, or until his successor qualified. RB:sw City of La Porte Established 1892 604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020 ORDINANCE NO. 2008-$~3 AN ORDINANCE APPOINTING MEMBERS OF THE CIVIL SERVICE COMMISSION, PROVIDING A SEVERABILITY CLAUSE, CONTAINING A REPEALING CLAUSE, 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 of the City of La Porte hereby ratifies and confirms the appointment by the City Manager, of Michael A. Garcia, as a Member of the civil Service Commission of the City of La Porte, for a term expiring on August 31, 2010, or until his successor shall have been duly appointed and qualified. Section 2. 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, sentence, phrase or clause, or part thereof, may be declared invalid. Section 3. All ordinances or parts of ordinances in conflict herewith are repealed to the extent of such conflict only. Section 4. 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 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 11th day of February, 2008. Cr'\.?F LA p~ ~~..~~~ Alton E. Porter Mayor By: ATTEST: ~~ M a A. Gillett City Secretary A~ '. r~ C ark . Askins Assistant City Attorney 2 12 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Febr 1 2008 Bud2:et Requested By: John Joerns Source of Funds: Department: I Administratio~ Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Ordinance 2008- Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION The City went into an Agreement with Bay Area Houston Convention and Visitors Bureau (BAHCVB) in March 2006. Per Section IV their bylaws, City Council is to appoint three members to represent the City of La Porte. One of the three shall be a hospitality industry professional. Each subsequent Director shall serve.a three (3) year terms, which will expire February II, 2011.or until their successors shall have been duly appointed and qualified. At this time we would like to officially appoint the following as Directors to the BAHCVB Board of Directors; City Representative I - City Representative 2 - Hospitality Industry Professional - Debra Dye Gretchen Black Joe Bertuglia J/r,~t& Date ORDINANCE NO. 2008- ,X)(p1- .AN ORDINANCE APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE BAY AREA HOUSTON CONVENTION .AND VISITORS BUREAU; 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: Section 1. The City Council of the City of La Porte hereby makes the following appointments to the Board of Directors of the Bay Area Houston Convention and Visitors Bureau, for three year terms, beginning on the date of passage of this ordinance, and expiring on the third anniversary of the passage of this ordinance, or until their successors shall have been duly appointed and qualified: City Representative 1 Debra Dye City Representative 2 Gretchen Black Hospitality industry professional Joe Bertuglia Section 2. 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, sentence, phrase or clause, or part thereof, may be declared invalid. Section 3. All ordinances or parts of ordinances in conflict herewith are repealed to the extent of such conflict only. Section 4. The City Council officially finds, determines, reci tes, 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 5. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 11th day of February 2008. By: Cf\Y OF LA PORTE ~LY~ Alton E. Porter Mayor ~s~: 'It/ Ia:~'~ City Secretary APPRO~ it T 11~ CI T. Askins Assistant City Attorney 2 MEETING HANDOUTS ~ ~ THURSDAY FEBRUARY 28TH, 2Q08 6:30 PM TO 8:00,iPM PASADENA DEER PARK LA PORTE SOUTH Hou SHOREACR MORGAN'S P &1:*2\ HARRIS COUNTY DEPARTMENTS VVILL BE REPRESENTED ALSO FLOOD CONTROL TxDoT z,' F. ;ii1i EAST HARRIS COUNTY ACTIVITY CENTER 7340 SPENCER HWY PASADENA, TX 77505 FOR MORE INFORMATION CALL 281-479-7770