Loading...
HomeMy WebLinkAbout2008-02-11 Regular Meeting of La Porte City Council 5 A MINUTES OF REGULAR MEETING OF THE LA PORTE CITY COUNCIL February 11, 2008 1. CALL TO ORDER The meeting was called to order by Mayor Porter at 6:10 p.m. Members of City Council Present: Mayor Pro Tem Rigby, Council members Tommy Moser, Mike Clausen, Georgia Malone, Mike Mosteit, Barry Beasley, Chuck Engelken, Howard Ebow and Mayor Porter. Members of Council Absent: None Members of City Executive Staff and City Employees Present: Assistant City Attorney Clark Askins, City Manager Ron Bottoms, Finance Director Michael Dolby, Assistant City Manager John Joerns, City Secretary Martha Gillett, Assistant Utility Superintendent Ray Mayo, Fire Chief Mike Boaze, Chief of Police Richard Reff, Economic Development Coordinator Gretchen Black, Human Resources Manager Heather Weger, Purchasing Manager Susan Kelley, City Planner Masood Malik, Office Coordinator Peggy Lee, and a number of other employees. Others present: John Handy of the Houston Chronicle, Adam Yanelli of the Bayshore Sun, Shar Lynch, Ed Matuszak, Ann Malone, Fred Muston, Wayne Spears, John Black, Colleen Hicks, Leonard Zlomke, Russell Plank, David Janda, Phillip Hoot, Rhonda Lunsford, Velma Mayo, Mike Garcia, Marina Garcia and a number of citizens. 2. Wayne Spears of the Fairmont Park Baptist Church led the invocation. 3. Mayor Porter led the Pledge of Allegiance. 4. PRESENT A TIONSI PROCLAMATIONS A. Russell Plank presented status of Port Crossing Business Park. 5. CONSENT AGENDA A. Consider approving Minutes of the Regular Meeting and Workshop Meeting of the La Porte City Council held on January 28, 2008. B. Council to consider approval or other action of an Ordinance approving an amendment to the Lease Agreement between the City of La Porte and the Economic Alliance Houston Port Region. (Ord. 2970-A). Coucilmember Moser requested to pull item B for a separate discussion. Motion was made by Council member Beasley to approve item A on the consent aQenda as presented. Second by Councilmember Engelken. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Clausen, Beasley, Engelken, Ebow, and Malone. Nays: None Abstain: None Absent: None Motion was made by Council member Ebow to approve item B on the consent aQenda as presented. Second by Councilmember Malone. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Clausen, Beasley, Engelken, Ebow and Malone. Nays: Moser Abstain: None Absent: None 6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, AND CITIZENS AND TAX PAYERS WISHING TO ADDRESS COUNCIL ON ANY ITEM POSTED ON THE AGENDA. Vicky Beveridge, 10111 N. "l" expressed her concerns about coyotes in her neighborhood. 7. Council to consider approval or other action regarding an ordinance amending a contract between the City of la Porte and Harris County Community & Economic Development Department (HCCEDD) for the Home Investment Partnership (HOME) Grant Program for the Northside Neighborhood Project and directing the City Manager to execute a contract with Sheila Frye and Associates to provide home closing services - (Ord. 2936-A) - Malik. Masood Malik, City Planner presented summary and recommendation and answered council's questions. Assistant City Attorney Clark Askins read ORDINANCE. 2006-2936-A "AN ORDINANCE AMENDING A CONTRACT BETWEEN THE CITY OF LAPORTE 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 COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Moser to approve Ord. 2006-2936-A as presented by Mr. Malik. Second by Councilmember Ebow. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Clausen Engelken, Ebowand Malone. Nays: None Abstain: None Absent: None 8. Council to consider approval or other action accepting a proposal from PBK Architecture to design the Texas Street Beautification Project. City Planner, Masood Malik presented summary and recommendation and answered Council's questions. Motion was made by Council member Clausen to approve the proposal as presented by Mr. Malik. Second by Councilmember Ebow. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Clausen, Engleken, Ebow, and Malone. Nays: None Abstain: None Absent: None 9. Council to consider approval or other action authorizing the City Manager to execute a contract with Reynolds Inliner in the amount of $99,770 for rehabilitation of sanitary sewer utilizing cure in place pipe. Assistant Public Works Director, Don Pennell presented summary and recommendation and answered Council's questions. Motion was made by Council member Enqelken to approve the contract as presented by Mr. Mayo. _Second by Councilmember Mosteit. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Clausen, Engleken, Ebowand Malone. Nays: None Abstain: None Absent: None 10. Council to consider approval or other action of the Rail Spur Agreement between the City of La Porte and Frontier Logistics, LLC and the La Porte Real Property LLC. City Manager Ron Bottoms presented summary and recommendation and answered Council's questions. Motion was made be Council member Ebow to approve the aqreement as presented bv Mr. Bottoms. Second by Councilmember Beasley. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Clausen, Engelken, Ebowand Malone. Nays: None Abstain: None Absent: None 11. Council to consider approving or other action of an Ordinance confirming appointment of Michael A. Garcia to the Civil Service Commission with a term expiring on August 10, 2010.- (Ord. 2008-3063) City Manager Ron Bottoms presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read ORDINANCE 3063- AN ORDINANCE APPOINTING MEMBERS OF THE CIVIL SERVICE COMMISSION; PROVIDING A SEVERABILITY CLAUSE; CONTAINING A REPEALING CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETING LAW; PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Clausen to approve the Ordinance as presented by Mr. Bottoms. Second by Councilmember Beasley. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Clausen, Engelken, Ebow and Malone. Nays: None Abstain: None Absent: None 12. Council to consider approving or other action of an Ordinance appointing members to the Board of Directors of the Bay Area Houston Convention and Visitor's Bureau. (Ord. 2008- 3064). Assistant City Manager John Joerns presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read ORDINANCE 3064- 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 MEETING LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Malone to approve the Ordinance as presented by Mr. Joerns. Second by Councilmember Engelken. The motion carried. Ayes: Mayor Porter, Rigby, Mosteit, Moser, Beasley, Clausen, Engelken, Ebow and Malone. Nays: None Abstain: None Absent: None 13. Police Chief Reff presented a status report on the La Porte Police Department Firing Range Project. 14. Administrative Reports Records Management Day - February 18, 2008. Commissioner Garcia's "Swing Thing" - February 25, 2008 7:30 a.m. and 12:30 p.m. Shot Gun Start- Timber Creek Golf Creek Club Commissioner Garcia Town Hall Meeting - February 28,2008 - East Harris County Activity Center - 6:30 p.m. - 8:00 p.m. National League of Cities Conference- March 8-12,2008 - Washington, D.C. Website Refurbishment Update. 15. Council Comments - Clausen, Rigby, Moser, Beasley, Malone, Ebow, Engelken, Mosteit 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) 551.074 (Personnel Matter) Meet with City Manager to discuss Duties 551.087 (Deliberation regarding Economic Development Negotiations) Meet with City Manager and City Attorney to discuss Sylvan Beach Development Council retired to Executive Session at 7:27 p.m. and returned to Regular Meeting and reconvened at 9:10 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 9:11 p.m. Respectfully submitted, ~ tft(jP!til/ Martha Gillett, lRM2' CMC City Secretary Passed and approved on this 25th day of February 2008. ~~:-P~ Mayor Alton E. Porter B REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested, 4-20-08 ~ Requested By: Richard F. Reff if; ~ Budl!et Source of Funds: Department: Cit" Onn~l:il Account Number: Report: Resolution: XX Ordinance: Amount Budgeted: Exhibits: Resolution for Triathlon 4-20-08 Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION A Resolution recognizing the Second Battle of San Jacinto Triathlon to be held the morning of April 20, 2008 in conjunction with the ceremonies at the San Jacinto Monument. The triathlon will be held within the City limits, also encompassing parts of Baytown and Deer Park and will require street closure requests that must be submitted and approved by TX Dot. Date RESOLUTION NO. 2008- 0 I A RESOLUTION AUTHORIZING THE BATTLE OF SAN JACINTO TRIATHLON AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH TEXAS DEPARTMENT OF TRANSPORTATION FOR THE TEMPORARY CLOSURE OF STATE RIGHTS-OF-WAY; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the Texas Department of Transportation requires the City of La Porte to enter into an agreement for the temporary closure of State rights-of-way for closure of various streets for the purpose of the Battle of San Jacinto Triathlon. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. That the Battle of San Jacinto Triathlon is an event that serves a public purpose. This event is open to the public and will also attract visitors from outside the city limits of La Porte. Section 2. That the City of La Porte will fulfill all necessary requirements established by 43 TAC, Section 22.12 which establishes the rules and procedures for the temporary closure of a segment of the State highway system. Section 3. That the City Manager be designated to coordinate the event activities. Passed by the City Council this 25th day of February, 2008. CITY OF LA PORTE ~y~ Alton E. Porter Mayor , A,ST: A ,,} ~ I /1 i1fj~ti // ~1(j/JI Martha A. Gillett City Secretary APPZD: t ~T~ 4" I Knox W. Askins City Attorney 7 REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Requested By: Source of Funds: Department: P Account Number: Report: X Resolution: Ordinance: Amount Budgeted: Exhibits: Amount Requested: I. Area Map - Tract P220 2. Area Map - Tract P222 Budgeted Item: YES NO SUMMARY & RECOMMENDATION In June 2006, City Council passed Ordinance No. 2003-2665-A to waive development, permit, building, inspection and parkland fees for certain non-profit corporations and/or City-initiated programs which provided housing for low-income families. Habitat for Humanity is requesting consideration from the City to participate as a non-profit by obtaining the following properties for the construction of two single-family dwellings: 1. Block 63, Lots 19 & 20, Town of La Porte (Re: P220) 2. Block 66, Lots 5 & 6, Town of La Porte (Re: P222) Given that Habitat is a non-profit organization; they are eligible for waiver of development fees per City ordinance. During a previous workshop, Council agreed to review, on a case-by-case basis, requests for funding/participation from Habitat for Humanity on a level similar to that for the HOME Grant Program. In a typical HOME Grant, the City incurs expenses as a matching requirement. There is a 25% match required from the City for HOME Grant funding. The following is a comparison of the expenses incurred by the City for the current HOME Grant Project and the request from Habitat for Humanity. The point of comparison is two homes constructed on City lots with associated costs factored. City Grant Requirements: HOME Grant - $210,000; Match Requirement - $52,500: Costs City HOME Grant Habitat for Humanity Waived Permits and Fees $7,771.10 ($3,885.55 x 2 homes) Eligible Waived Park Fees $1,616 (2 homes) Eligible Lot Acquisition Costs $23,900 (Cash Paid Out - 5 lots) $13 ,873.54 Removal of Exist. Structure (P222) $0 $2,500 (estimate) Appraisal Fees $1,000 (Cash Paid Out) $0 Deed Recording Fees $25 (Cash Paid Out) $25 Subtotal $34,312.1 0 $16,398.54 Harris County cost match $18,187.90 $0 Total Cash Cost to City $43,112.90 (for 2 buildin2 sites) $16,398.54 (for 2 buildin2 sites) For the HOME Grant Program, the direct cash contribution to Harris County would equal $43,112.90. This amount represents the balance due to meet the City's match requirement after all City permit and park fees have been waived. Should Habitat for Humanity receive the lots and build homes, the cost to the City would be $16,398.54. 2 Action Reauired bv Council: Consider approval to convey lots held in trust by the City to Habitat for Humanity to construct affordable housing. If approved, the City Manager's Office recommends use of the Community Investment Fund (estimated $ , .54). N W~E .~ S eEXh'/e/r ~. / .~1Ii . (Block 66, Lots 5 & 6, La Porte) {~ . ~/I3r-r #0. z 8 - . _"_0 . REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 2/19/2008 Budl!et Requested By: Gretchen Rlack Source of Funds: EDC Department: City Mllllllger/EDC Account Number: 038-6030-565-50.07 Report: Resolution: Ordinance: Amount Budgeted: $0 Exhibits: Amount Requested: $30,000 SUMMARY & RECOMMENDA rlON At the LPEDC meeting on February 25th we will be requesting that the Board consider authorizing staff to proceed with an appraisal of the triangle property located between Broadway, San Jacinto and East A Streets across from 117 San Jacinto. Additionally, we are also asking the Board to consider authorizing staff to proceed with selecting a firm to provide architectural renderings of the proposed town square. Both of the these projects would be the first steps necessary to create the concept and to move the project forward. If this request is approved by the Board we will select an appraiser from an approved city list. For the architectural renderings we will meet with firms to discuss the proposed concept and then based upon those discussions select a firm. In order to expedite this process we are requesting authorization to have the Board approve a budget adjustment for the services not to exceed $30,000. Per the by-laws of the Corporation, the City Council must approve any expenditure above $15,000. The City Council must also authorize an amendment to the FY 2008 Budget for the $30,000 requested from the LPEDC Board. Action Required bv Council: Appr e t actions of the LPEDC Board authorizing the Economic Development Coordinator to rocee with the town square plan and amend the FY 2008 Budget in an amount not to ceed 0,000 for the services requested. ~11J>t> 9 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: February 25. 2008 Appropriation Requested By: .fohn .foerns Source of Funds: N/A Department: ~dmillidntiQIl Account Number: N/A Report: Resolution: Ordinance: x Amount Budgeted: NI A Exhibits: Ordinance 2008- Amount Requested: N/A. Exhibits: Exclusive Rie:ht to Sell Contract Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The City issued an RFP for Real Estate Brokerage Services. Six responses were received and evaluated by staff. The fmn of Cushman & Wakefield of Texas, Inc. (C & W) was identified as the top respondent. An agreement for services has been negotiated and has been reviewed by Knox Askins. The agreement provides for C & W to represent the City for the following properties. . An estimated 47.60 Ac (residual of80.97 Ac tract) on Bay Area Blvd. Fee at 3.75% of sales price. . The former PD sitelMunicipal Court building and related properties (will include lease back provisions for Municipal Court). Fee at 5% of sales price. . The residual of the 5.9 Ac on North Broadway (known as the Flanagan Lease). Fee at 5% of sales price. The agreement includes a right to terminate clause for anyone or more of the three properties and provides for reimbursement of expenses not to exceed $5,000 upon expiration or termination ofthe agreement in the event C & W is not paid a commission. The agreement further notes that the properties are not presently ready to sell and that the City will notify C & W when each property is available for sale. authorizing City Manager to approve contract for services of C & W to represent City in d ~ I{)s Date ORDINANCE NO. 2008-~ AN ORDINANCE APPROVING AND AUTHORIZING AN EXCLUSIVE RIGHT TO SELL CONTRACT BETWEEN CITY OF LA PORTE AND CUSHMAN &: WAICEFIELD OF TEXAS, INC., FOR THE EXCLUSIVE RIGHT TO SELL CERTAIN REAL PROPERTIES OWNED BY THE CITY OF LA PORTE, 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 25th day of February, 2008. By: ATTEST: IUliktlflll Mar ha A. Gi I tt City Secretary APPROVED: j /;~ /' 0! II . /. ~ /1 (2:a~JJL~ ~ L~J Knox W. Askins ' City Attorney CUU:t::~_ Alton E. Porter, Mayor 2 IIIIII'~ CUSHMAN& '~r,' WAKEFIELD@ Via U. S. Mail Cushman & Wakefield of Texas, Inc. Licensed Real Estate Brokers 1330 Post Oak Boulevard, Suite 2700 Houston, TX 77056-3054 (713) 877 1700Tel (713) 877 1965 Fax www.cushwake.com February 20, 2008 Ms. Melisa Lanclos Office Manager City of La Porte, City Managers' Office 604 West Fairmont Parkway La Porte, TX 77571 RECEIVED FCB ~) ') u: ~_~ CITY MANAGER'S OFFICE RE: RFP #08502 Dear Melisa, As requested, please find two execution originals of our Exclusive Right to Sell Contract and Schedule of Commission for Sales Transactions for City of La Porte properties. Thank you. Sincerely, . ::JL~??~ Mallo~ Hoffman . Senior Administrative Assistant to John F. Littman, SIOR Imh Enclosures c: John F. Littman, SIOR F :\ADMINS\Hoffman\ WORD\Littman _ Ltrs08\melisalanclos _ CityofLaPorte _ ERSsbJFL _022008 .doc No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions, imposed by our principals. RFP #08502 EXCLUSIVE RIGHT TO SELL CONTRACT (No Override) February 25, 2008 John F. Littman, SIOR Senior Director B. Kelley Parker ill, SIOR Executive Vice President Jon Farris, SIOR, CCIM Senior Director Cushman & Wakefield of Texas, Inc. 1330 Post Oak Blvd., Suite 2700 Hou~on,Texas77056 Re: (1) Proposed Landfill Site, approximately 80.97 acres on Bay Area Blvd., Tract 10B-1 Bayport U/R, Section l.A-47, La Porte, Harris County, Texas , SAVE AND EXCEPT the approximately 33.37 acres thereof to be acquired by Harris County, Texas, for the Harris County Flood Control District, for purposes of construction and operating a storm water detention pond, and together with a 30 foot easement connecting the Harris County tract to Bay Area Blvd; (2) Former Landfill Site, approximately 5.9 acres located on North Broadway Street and North I Street, Morgan's Point, Harris County, Texas, SAVE AND EXCEPT that portion thereof, the exact metes and bounds description of which shall be determined, which shall be reserved for rail spur easement purposes, pursuant to Article 3, of a lease Agreement between the City of La Porte and Flanagan Shipping; the sale of the remnant tract after deleting the rail easement tract, shall be SUBJECT TO the existing lease between the City of La Porte and Flanagan Shipping; (3) The former Police Department Building located at 915 South 8th Street, La Porte, Harris County, Texas, SUBJECT TO a lease-back to the City of La Porte, for the portion of the building presently devoted to City of La Porte Municipal Court operations, including associated ingress, egress, and parking, for a period of 12 months, following closing, and on a month to month basis thereafter, subject to further negotiations, until completion of a new Municipal Court facility to be constructed by the City of La Porte; ("the Properties") Gentlemen: We hereby appoint Cushman & Wakefield of Texas, Inc. ("C&W") as our sole and exclusive agent and grant to C& W the exclusive right to sell all or any portion ofthe Properties. C& W's appointment as our sole and exclusive agent shall be upon the following tenus and conditions: F:\ADMINS\Hoffman\ WORD\BKPTeam_Agrmts08\City of La Porte _ ERS _ 022508.DOC 1. The term of this agreement shall commence on the date hereof and continue in effect for one year through March 1, 2009. The City of La Porte shall have the right to terminate this agreement, as to any one or more ofthe three (3) properties, with thirty (30) days advance written notification to C&W. 2. C&W agrees that it will enlist its commercially reasonable efforts to secure a satisfactory purchaser(s) for the Properties, and if C& W deems it necessary, C& W will also solicit the cooperation of other licensed real estate brokers. 3. C& W shall prepare marketing brochure or offering package, which must be approved by us prior to its use. C& W will pay all out of pocket expenses, which it may in its discretion incur in the preparation of the offering material(s) and marketing the Properties. Such expenses may include, but not be limited to, communications, postage for direct mailings, the cost of special graphics, brochures, photographs, and if we mutually agree to advertise, advertising costs. The City of La Porte agrees to reimburse C& W for such expenses up to, but not to exceed, $5,000 upon expiration or termination of this agreement in the event C& W is not paid a commission pursuant to this agreement prior thereto or if The City of La Porte terminates this agreement after forty-five (45) days of the commencement date of this agreement. All advertising, whether prepared or issued by C& W or by us, shall identify C& W as our exclusive agent for the Properties. 4. The sale of the Properties must be conducted by a public bid process, as set forth in the Texas Government Code; the Texas Local Government Code; and the Home Rule Charter of the City of La Porte. The City of La Porte will refer to C& Wall inquiries by parties interested in participating in the public bid process. The parties recognize that the sale of the Properties cannot be conducted on a "negotiation basis". 5. In the event that: (i) at any time during the term of this agreement a sale of all or any portion of the Properties, upon any terms acceptable to us, shall be made with any purchaser who was procured by C&W, or by us, or by any other person via the public bid process in Paragraph 4 above who for whatever reason was not the original highest bidder, or (ii) at any time up to one hundred eighty (180) days after the expiration or termination of this agreement a sale of all or any portion of the Properties, upon any terms acceptable to us, shall be made with any purchaser to whom the Properties were submitted by C&W, or by us, or by any other person during the term of this agreement; then, and in either such event, we agree to pay to C& W one (1) full commission computed and payable in accordance with the applicable annexed Schedule. However, in our sole discretion we may in the alternative, determine to conduct a subsequent public bid process retaining C&W as our sole and exclusive agent granting C&W the exclusive right to sell all or any portion of the Properties within one hundred eighty (180) days. 6. In no event shall the City of La Porte be liable to pay a commission in excess of the commission stated on the Schedule of Commissions attached hereto, for the sale of the Police Department Building. If a real estate broker other than C& W is the effective procuring cause of a sale of the Police Department Building located at 915 South 8th Street in La Porte, Texas C&W shall use its best efforts to have such other broker agree to accept, as its compensation one-half of the commission payable to C& W for this property, pursuant to this agreement, and if such other broker so agrees, we will pay to C&W the commission set forth above out of which C&W will pay to such other broker its agreed upon share and retain the balance of the commission as C& W' s compensation for this Property. In no event shall C& W be liable for the failure to obtain such other broker's agreement to accept, as its compensation, the above referral portion ofthis commission payable to C& Whereunder. F:\ADMINS\Hoffman\ WORD\BKPTeam _AgrmtsOS\City of La Porte _ ERS _ 02250S.DOC In the event C& W cooperates with another licensed, real estate broker for the Proposed Landfill Site 80.97 acres on Bay Area Blvd. or the Former Landfill Site, 5.9 acres on North Broadway Street and North I Street, before working with such broker, C&W will inform the broker that it must look to its client for any and all compensation, which may become due to it for the proposed transaction. It is acknowledged that C& W shall not be required to share its commission payable hereunder with any cooperating broker. 7. WE ACKNOWLEDGE THAT C&W MAY REPRESENT POTENTIAL PURCHASERS AND WE HEREBY CONSENT TO SUCH INTERMEDIARY REPRESENTATION. As a real estate broker who acts as an intermediary in a transaction, C&W (i) shall treat all parties honestly; (ii) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (iii) may not disclose that the buyer will pay a price greater than the price submitted unless authorized to do so by the buyer; and (iv) may not disclose any confidential information or any information that a party specifically instructs C&W in writing not to disclose unless authorized in writing to disclose the information or required to do so by the Texas Real Estate License Act or by a court order or ifthe information materially relates to the condition ofthe Properties. The parties recognize that the Properties will be sold on a public bid process, and the City mayor may not have an asking price, or a minimum bid amount, although it may elect to do so. The parties further recognize as to the "price greater than the price submitted" provision, above, that this provision does not apply to the public bid process. The parties further recognize as to the disclosure of confidential information, that City, as a governmental body, must be totally transparent in its dealings, and is subject to provisions of the Texas Public Information Act." 8. In the event that either party shall commence litigation against the other party to enforce its rights under this agreement, the party prevailing in such litigation shall be entitle to recover from the other party the cost(s) and expense(s) (including attorney's fees) thereby incurred. 9. None of the properties are available for immediate sale. (a) The Former Landfill Site cannot be advertised for sale, until the interlocal agreement between the City of La Porte and Harris County is formalized, and the exact acreage to be sold by the City to Harris County, together with the access easement, is determined. (b) The Former Landfill Site on North Broadway Street cannot be advertised for sale, until a metes and bounds description of the rail easement to be deleted from the tract, has been obtained. (c) The Former Police Department Building on South 8th Street cannot be advertised for sale, until the proposed lease-back to the City of the Municipal Court facilities has been drafted and approved by the City Council, and a street and alley closing adjacent to the property, has been completed and approved by La Porte City Council. The City will notify C&W in writing when each of the three properties may be advertised for sale. 10. This agency shall be binding upon the parties hereto, their respective successors and assigns. The undersigned represents that it is the fee simple owner ofthe Properties and the signatory represents that he or she is duly authorized to execute this agreement on behalf ofthe undersigned ownership entity. F:\ADMINS\Hoffman\ WORD\BKPTeam _Agrmts08\City of La Porte _ ERS _ 022508.DOC If the foregoing accurately sets forth our agreement, please sign and return the enclosed copies of this letter. Very truly yours, Name: e ~~ ~S Title: ~ ~..r Address &04 \Ill. FSrmon-f Ru~VYlf Let PorJe ;-rexaS' Phone: .iq J . If'? 0 . 50 II AGREED AND ACCEPTED: C:J~&WAKEFlEWO ,XAS,INC. )iy~A-h 1- .~ /'/ )'ohn F. Littman, SIOR ~/ Senior Director Attachment: Schedule of Commissions Agreement F:\ADMINS\Hoffman\ WORD\BKPTeam _Agrmts08\City of La Porte_ERS _ 022508.DOC CUSHMAN & WAKEFIELD OF TEXAS, INC. ("C&W") - HOUSTON And The City of La Porte SCHEDULE OF COMMISSIONS FOR SALES TRANSACTIONS 1. RATES The following commission rates shall be payable to Cushman & Wakefield based upon the total sales price: Property PCloccntagc 3.75% 5% 5% 2. TIME OF PAYMENT The commission shall be earned, due and be payable in full at the time of the closing or transfer of title to the Properties, on in the case of a long-term contract with title withheld but possession transferred to the purchaser, at the time of execution and delivery of the contract. 3. COMPUTATION OF SALES PRICE The commission shall be computed in accordance with the above rates based upon the total sales price, which shall include any mortgages, loans or other obligations of the seller which may be assumed by the purchaser or which the purchaser takes title "subject to", any purchase money loans or mortgages taken back by the seller, the sales price of any fixtures or other personal Properties sold by separate agreement between the seller and purchaser as part of the overall sale of the real Properties, and the current market value of any other real or personal Properties transferred from the purchaser to the seller as part of the sale. 4. MISCELLANEOUS The terms "Seller" and "Purchaser" shall be deemed to include any subsidiaries, affiliates, successors, assigns and nominees of same. "V" F:\ADMINS\Hoffman\ WORD\BKPTeam _Agrmts08\City of La Porte _ ERS _ 022508.DOC REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: February 25. 2008 Appropriation Requested By: .John .Joerns Source of Funds: NtA Department: ~dlllillidriltiQIl Account Number: NtA Report: Resolution: Ordinance: x Amount Budgeted: Nt A Exhibits: Ordinance 2008- Amount Requested: NIl\. Exhibits: Exclusive Ril!bt to Sell Contract Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The City issued an RFP for Real Estate Brokerage Services. Six responses were received and evaluated by staff. The frrm of Cushman & Wakefield of Texas, Inc. (C & W) was identified as the top respondent. An agreement for services has been negotiated and has been reviewed by Knox Askins. The agreement provides for C & W to represent the City for the following properties. . An estimated 47.60 Ac (residual of 80.97 Ac tract) on Bay Area Blvd. Fee at 3.75% of sales price. . The fonner PD sitelMunicipal Court building and related properties (will include lease back provisions for Municipal Court). Fee at 5% of sales price. . The residual of the 5.9 Ac on North Broadway (known as the Flanagan Lease). Fee at 5% of sales price. The agreement includes a right to tenninate clause for anyone or more of the three properties and provides for reimbursement of expenses not to exceed $5,000 upon expiration or tennination of the agreement in the event C & W is not paid a commission. The agreement further notes that the properties are not presently ready to sell and that the City wilI notify C & W when each property is available for sale. authorizing City Manager to approve contract for services of C & W to represent City in d ~ /0/3 Date A ---- --- No Back-up required for this item B ---...- ....----.-.- .-- UDdate SH 146 Grad SeDaration at Red Bluff Road. Shoreacres Road/Choate. Wharton Weems Blvd. . The total project cost for all three grade separation sis $67,600,000 . The total dollar amount approved in previous transportations bills for all three grade separations is $22,931,875 . The FY 2009 federal request for all three projects is $38,232,125 . Breakdown ofrequested funding is as follows: (A) Red Bluff Road - $12,379,939 (B) Choate Road - $13,748,436 (C) Wharton Weems - $12,103,750 . The design is ongoing and anticipated letting date is April 2009 . City will be asking Congressman Lampson to assist in securing the additional funding . Consider authorization for City Council and TIRZ/Redevelopment Authority Chairman to send a letter of support for additional funding The Sie:nalization Proiect at Wharton Weems . The TIRZ project plan includes $117,000 for this project . Developers of Port Crossing and Lakes at Fairmont Green are required to participate in the traffic study/funding . Developer of Port Crossing has taken lead in securing Engineering, TxDOT approval, plan preparation . Initial cost estimates were in range of $550k . City and Port Crossing have visited with TxDOT to see about reducing certain requirements . The drawing to be provided at the meeting, will describe the proposed work and our efforts to date . Currently, new cost estimates are being prepared . To receive the advanced funding from TxDOT will require a public sponsor (either TxDOT or City)