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HomeMy WebLinkAbout2010-4-12 MINUTES OF REGULAR MEETING AND WORKSHOP MEETING OF THE LA PORTE CITY COUNCIL APRIL 12, 2010 1. Call to order ~a6lel./ The meeting was called to order by Mayor.pro TC:IH~ldck at 6:00 p.m. Members of City Council Present: Councilmembers Louis Rigby, Tommy Moser, Daryl Leonard, John Zemanek, Mike Clausen, Mayor Pro Tem John Black, Mike Mosteit, Chuck Engelken and Barry Beasley Members of Council Absent: None Members of City Executive Staff and City Employees Present: City Manager's Office: Ron Bottoms, John Joerns, Melisa Lanclos and Dawn Anderson Legal: Clark Askins City Secretary's Office: Martha Gillett Public Works: Steve Gillett Planning: Tim Tietjens, Brian Sterling and Isaac Rodriquez Police Department: Ken Adcox and Tracy Phelan Parks and Recreation: Stephen Barr Purchasing: Jeanna Masterson Economic Development: Stacey Osborne Fire: Mike Boaze EOC: Jeff Suggs and Kristin Gauthier Others Present: Ted Powell, Adam Yanelli of the Bayshore Sun, Kathryn Aguilar, Dottie Kaminski, Mrs. Powell, Chad Burke, Bob Klassen, Josh Schaefer, Phillip Hoot, Marie McDermott, Orville Burgess, Pam Mabe, Larry Mabe, Colleen Hicks, Paul Chavez, Chuck Rosa, Mrs. Rosa and other citizens. 2. The Invocation was given by Councilmember Black. 3. Councilman Mike Mosteit led the Pledge of Allegiance. 4. Presentations/Proclamations A. Mayor Beasley presented the "Internet Safety Month Day" proclamation to recipients. B. Chad Burke from the Economic Development Alliance provided a presentation. Chad Burke of the Economic Alliance provided Council with activities and projects that the Alliance has worked on in the La Porte area. Councilmember Zemanek asked questions about the lease agreement that the City has with the Economic Alliance. Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on April 12, 2010 2 5. Consent agenda - Any item may be removed by a Councilperson for discussion A. Council to consider approval or other action of minutes of Regular Meeting held on March 22,2010 - M. Gillett B. Council to consider approval or other action of a resolution authorizing the City of La Porte to participate in the NLC Prescription Discount Card Program (Res. 2010-04) - M. Lanclos C. Council to consider approval or other action authorizing the City Manager to execute a contract for the construction of Lift Station # 10 Rehabilitation - S. Gillett D. Council to consider approval or other action regarding an ordinance vacating, abandoning, and closing the alley in Block 1146, in the Town of La Porte (Ord. 3229) - T. Tietjens E. Council to consider approval or other action regarding an ordinance vacating, abandoning and closing that portion of the alley in Block 4, Town of La Porte situated between Lots 6- 16 and Lots 17-27 (Ord. 3230) - T. Tietjens F. Council to consider approval or other action awarding bid # 10016 providing Lifeguarding Services at La Porte Municipal Pools - S. Barr G. Council to consider approval or other action awarding RFQ # 10601 for development of a Continuity of Operations Plan for the City of La Porte - J. Suggs/So Cream H. Council to consider approval or other action of the La Porte Facilities Naming Committee recommendation to change the working names of two new parks to Wood Falls Park and Pecan Park - S. Barr I. Council to consider approval or other action regarding vote by the La Porte Development Corporation to cancel lease on property at 117 San Jacinto Street - R. Bottoms Assistant City Attorney Clark Askins read the following agenda captions: Resolution 2010-04 - A RESOLUTION AUTHORIZING PARTICIPATION IN THE NLC PRESCRIPTION DISCOUNT CARD PROGRAM AND DESIGNATING THE CITY MANAGER TO COORDINATE ALL PROGRAM ACTIVITIES; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF Ordinance 3229 - AN ORDINANCE VACATING, ABANDONING AND CLOSING THE ALLEY IN BLOCK 1146, TOWN OF LA PORTE, HARRIS COUNTY, TEXAS, AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED TO THE ADJOINING LANDOWNER, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. Ordinance 3230 - AN ORDINANCE VACATING, ABANDONING AND CLOSING A PORTION OF THE ALLEY IN BLOCK 4, TOWN OF LA PORTE, HARRIS COUNTY, Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on April 12, 2010 3 TEXAS, AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED TO THE ADJOINING LANDOWNERS, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. Council had questions on consent items H and I. Motion was made bv Councilmember Moser to approve the consent aaenda as presented. Second by Councilmember Zemanek. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Mayor Pro Tern Black, Zemanek, Mosteit and Mayor Beasley Nays: None Abstain: None Absent: None 6. Petitions, Remonstrance's, Communications, Citizens and Tax Payers wishing to address Council on any item posted on the agenda (Limited to five minutes) Kathryn Aguilar - 3119 Fondren - Ms. Aguilar reported property values in some parts of the South end of town have fallen by 50% over the past year. She noted people need assistance on a community wide basis. 7. Council to consider approval or other action regarding an ordinance authorizing the issuance of Certificates of Obligation Series 2010 and. General Obligation Refunding Bonds, Series and resolution authorizing La Porte Area Water Authority Contract Revenue Refunding Bonds Series 2010 (Ord. 3231, 3232, 3233) and (Res. 2010-05) - M. Dolby Margo White with Andrews Kurth and Ryan O'Hara with RBC Dain Rauscher presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read ordinance 3231, AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LA PORTE, TEXAS CERTIFICATES OF OBLIGATION, SERIES 2010; AND CONTAINING OTHER MATTERS INCIDENT THERETO Assistant City Attorney Clark Askins read ordinance 3232, AN ORDINANCE AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2010; AUTHORIZING CALL FOR REDEMPTION AND DEFEASANCE OF CERTAIN BONDS AND THE USE OF CERTAIN FUNDS RELATED TO THE BONDS TO BE REFUNDED; AND MAKING OTHER PROVISIONS REGARDING SUCH BONDS, INCLUDING USE OF THE PROCEEDS THEREOF, AND MATTERS INCIDENT THERETO. Assistant City Attorney Clark Askins read ordinance 3233 AN ORDINANCE CONSENTING TO A PROPOSED BOND RESOLUTION AND CONTINUING DISCLOSURE AGREEMENT TO BE ADOPTED BY THE LA PORTE AREA WATER AUTHORITY Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on April 12, 2010 4 Assistant City Attorney Clark Askins read resolution 2010-05, A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF LA PORTE AREA WATER AUTHORITY CONTRACT REVENUE REFUNDING BONDS, SERIES 2010; AND AUTHORIZING CERTAIN OTHER MATTERS INCIDENTAL THERETO. Motion was made by Councilmember Clausen to approve an ordinance authorizina the issuance of Certificates of Obliaation Series 2010 and General Obliaation Refundina Bonds. Series and resolution authorizina La Porte Area Water Authority Contract Revenue Refundina Bonds Series 2010 as presented by Mr. Dolby. Seconded by Councilmember Enaelken. Ayes: Mosteit, Engelken, Clausen, Rigby, Moser, Leonard, Black, Zemanek and Mayor Beasley Nays: None Abstain: None Absent: None 8. Consider approval or other action of an updated policy, application form and standard Water and Sanitary Sewer Service Agreement for companies with Industrial District Agreements with the City of La Porte - J. Joerns Assistant City Manager John Joerns presented summary and recommendation and answered Council's questions. Motion was made by Councilmember Zemanek to approve an updated policy. application form and standard Water and Sanitary Sewer Service Aareement for companies with Industrial District Aareements with the City of La Porte as presented by Mr. Joerns. Second by Councilmember Leonard. Motion carried unanimously. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Mayor Pro Tern Black, Mosteit, Zemanek and Mayor Beasley Nays: None Abstain: None Absent: None 9. Consider approval or other action authorizing the City Manager to enter into a Water Service Agreement and a Sanitary Sewer Service Agreement with Seawater, Inc. (Ord. 3234) - T. Tietjens GIS Manager Brian Sterling presented summary and recommendation and answered Council's questions. Assistant City Attorney Clark Askins read Ordinance 3234, AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT AND SANITARY SEWER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND SEAWATER, INC.; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on April 12, 2010 5 FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Mosteit to authorize the City Manaaer to enter into a Water Service Aareement and a Sanitary Sewer Service Aareement with Seawater. Inc. as presented by Mr. Sterlina. Second by Councilmember Zemanek. Motion carried unanimously. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Mayor Pro Tem Black, Mosteit Zemanek and Mayor Beasley Nays: None Abstain: None Absent: None 10. Close Regular Meeting and Open Workshop Meeting The Regular Meeting was closed and the Workshop Meeting was opened at 7:03 p.m. A. Receive report on Brookglen Spray Ground - S. Barr Parks and Recreation Director Stephen Barr provided a report on Brookglen Spray Ground. Council directed Staff to get legal answers from Texas Commission on Environmental Quality and move forward quickly and include the circulation system which Council preferred. 11. Close Workshop Meeting and Open Regular Meeting Mayor Beasley closed Workshop Meeting and reconvened Regular Meeting at 7:19 p.m. 12. Receive report from Fiscal Affairs Committee - Chairman Engelken Chairman Chuck Engelken provided a report from the Fiscal Affairs Committee 13. Receive report from the La Porte Development Corporation Board - Councilman Engelken Councilmember Chuck Engelken provided a report from the La Porte Development Corporation Board. 14. Receive Drainage Report from City Staff - S. Gillett Public Works Director Steve Gillett provided the monthly Drainage Report. 15. City Manager Ron Bottoms provided Administrative Reports for the following: Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on April 12, 2010 6 April 13, 2010 - La Porte Area Water Authority Board Meeting - Public Works Service Center - 2963 North 23rd Street - 6:00 p.m. April 15, 2010 - Harris County Mayor & Council Association Dinner - Hotel ZAZA- Herman Park Drive - 6:30 p.m. - 9:00 p.m. April 17, 2010 - Red Suspenders Shrimp Boil- Senior Center -1322 South Broadway- 11 :00 a.m. - 1 :00 p.m. April 17, 2010 - Best Dog-Gone Dog Contest - Town Plaza at Five Points - 9:00 a.m.- 12:00 p.m. April 21, 2010 - 6th Annual Norman Malone Memorial Mayor's Golf Tournament - 8:00 a.m. and 1 :00 p.m. tee times - Bay Forest Golf Course April 24, 2010 - 54th Annual Sylvan Beach Festival & Crawfish Jam - 9:00 a.m. Parade (10:00 a.m.)- followed by pageant, music, festivities till 12:00 a.m. April 26, 2010 - City Council Meeting - 6:00 p.m. Early Voting for Joint General and Special Sales Tax Election - April 26, 2010 - May 4, 2010 - 8:00 a.m. - 5:00 p.m. Extended hours for Early Voting will be Wednesday, April 28, 2010 - 7:00 a.m. - 7:00 p.m. and Tuesday, May 4,2010 - 7:00 a.m. - 7:00 p.m. Early Voting on Saturday, May 1, 2010 - 8:00 a.m. - 5:00 p.m. 16. Council Comments: Rigby, Moser, Black, Leonard, Zemanek, Engelken, Mosteit, and Beasley. A. Matters appearing on agenda B. Recognition of community members, city employees, and upcoming events C. Inquiry of staff regarding specific factual information or existing policy 17. Executive Session - pursuant to provision of the Open Meeting Law, Chapter 551, Texas Government Code, Sections 551.071 through 551.076, 551.087 (consultation with attorney, deliberation regarding real property, deliberation 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) 18. Considerations and possible action on items considered in executive session. There was no Executive Session. 19. Adjournment Minutes of Regular Meeting and Workshop Meeting of La Porte City Council on April 12, 2010 7 Being no further business, the meeting was duly adjourned at 7:37 p.m. Respectfully submitted, L1YJalMtL~1 ~a~~a Gillett, TRMC City Secretary proved on this 26th day of April 2010. B REQUEST FOR CITY COUNCIL AGENDA ITEM Requested By: Appropriation Agenda Date Request: Source of Funds: N/A Department: City Mana~er Account Number: N/A Report: Resolution: Ordinance: Amount Budgeted: N/A Amount Requested: N/A Exhibits: Resolution Exhibits: Exhibits: Budgeted Item: SUMMARY & RECOMMENDATION At the March 8, 2010, City Council Meeting, staff received direction from City Council to move forward and submit a request to enroll in the NLC Prescription Discount Card Program. A program requirement is that City Council approves a Resolution for the City of La Porte and informs NLC of its intent to participate in this program. City Manager will designate Melisa Lanclos to serve as the principal program contact. She will work with NLC and CVS Caremark to implement the program to the benefit of the residents of the City of La Porte. ~!1 fO Date RESOLUTION NO. 2010-~ A RESOLUTION AUTHORIZING PARTICIPATION IN THE NLC PRESCRIPTION DISCOUNT CARD PROGRAM AND DESIGNATING THE CITY MANAGER TO COORDINATE ALL PROGRAM ACTIVITIES; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Whereas many citizens of the City of La Porte are among the millions of Americans without health insurance or with limited prescription drug coverage, and; Whereas the National League of Cities is sponsoring a program in collaboration with CVS Caremark to provide relief to city residents around the country from the high cost of prescription drugs, and Whereas NLC Prescription Discount Card Program will be available to member cities ofNLC at no cost to those cities, and; Whereas CVS Caremark will provide participating cities with prescription discount cards, marketing materials and customer support, and; Whereas the discount cards offer an average savings of 20 percent off the retail price of most prescription drugs, has no enrollment form or membership fee, no restrictions based on the resident's age or income level, and may be used by city residents and their families any time their prescriptions are not covered by insurance, and; Be It Resolved by the City Council of the La Porte, Texas, that the City of La Porte will inform the National League of Cities of its intent to participate in the NLC Prescription Discount Card Program designates its city manager to coordinate all program activities, and will work with NLC and CVS Caremark to implement the program to the benefit of the residents of the City of La Porte. Passed by the City Council this 12th day of April, 2010. CITY OF LAPORTE ~?/ Barry asley Mayo ATTEST: ~dJP~M M ha A. Gillett City Secretary APTl::. ~. -J ~ 1- Cla(k Askms Assistant City Attorney ~ c REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 12. 2010 Bud!!et Source of Funds: 047 Requested By: Steve Gillett Department: Public Works Account Number: 047-9892-997-1100 Report: Resolution: Ordinance: Amount Budgeted: $400.000 Exhibits: Engineer's Recommendation Amount Requested: $276.700 Exhibits: Bid Tabulation Budgeted Item: YES Exhibits Bidders List SUMMARY & RECOMMENDATION Lift Station # 10 Rehabilitation was identified by a Lift Station Evaluation performed in 2009, and is the first project over a multi-year period. The project, designed by Freese and Nichols Inc. is for demolition excluding the wet well and replacement of pumps, controls, hatches, fencing, driveway, etc. for the lift station serving the Glen Meadows Subdivision. Advertised, sealed bids #10013 - Lift Station 10 Rehabilitation were opened and read on March 25, 2010. Bid requests were advertised in the Bayshore Sun, posted on the City of La Porte website site and mailed out to fourteen (14) vendors with five (5) returning bids. The Design Engineer and Staff recommend awarding the bid to low bidder R & B Group Inc. for $263,700.00 and a $13,000.00 contingency. ) ./ 11200 Broadway Street 112332 . Pearland, Texas 77584 . 832-456-4700 . fax 832-456-4701 \'I\'Iw.freese.conl 3/31/2010 Don Pennell Asst, Public Works Director City of La Porte 2963 N. 23rd Street La Porte, lX, 77571 RE: Lift Station No. 10 Rehabilitation Dear Client Name: Listed below is the summary of bids for the Lift Station No. 10 Rehabilitation. A total of five bid proposals were received on March 25, 2010. Summary of Bids: 1) R&B Group, Inc. 2) Peltier Brothers Construction, Ltd. 3) Veovia Es Industrial Services 4) G&N Enterprises, Inc. 5) Enviro Remediation, Inc. Base Bid $ 243,350.00 $ 255,350.00 $ 267,825.00 $ 284,395.00 $ 272,311.00 Base Bid plus Alternates $ 263,700.00 $ 272,910.00 $ 297,775.00 $ 307A35.00 $ 358,285.00 Freese and Nichols' estimate for the Base Bid was $340,285.00. A copy of the bid tabulation is attached for your use and information. Based on their previous experience with the City of Webster, our previous experience on prior projects and the references checked, R&B Group, Inc. appears to have a good record on this type of project. Based on this information, Freese and Nichols recommends that the City of La Porte award the construction contract Including the bid alternates for this project to R&B Group, Inc. in the amount of $263,700.00. Please call me at (832) 456-4715 If you have any questions. Sincerely, Freese and Nichols, Inc. IJIL. Lit- William (Clay) Herndon, P.E. Project Manager BJI) TABULATION (J.1l-:;\IT PHll/ECT Oty of a.. Porte Uft Station No. 10 Reh.tHllwtlon PROJECT NO flll) OAT!? LPT0038' ThunclIIy, March Z5,1010 R&BGrou J,lnr 1'\'Ili('rnr()lhH~(,un,lrlldi"n Ud Vl',wjaEsIJHlu~trj,llS('n'ic('s (;&NEutH fisC's 1m:. EllViw R{'m('dialiun, hK .'\n'rd'" Ih'Ill D..'~cri ,lion ualllil lInil llllitC,,_.t r"1:;.ICost lJnllC"st rotate""t UllitCnst l'"l;,II:nst IllljfOI~t TotaIC,,"t ITllit<:"sl Tn(;.]C",1 Uujt<:""t 1',,(<.ICosl Il;\"ElIl!)JTEM\ Demolition-Ind. removal and dlspo$<ll of top of wetwell,removaland $<Ilvilie of pipes, valves, and 1 pump5,remOVilI ofe.dstlng!lectrical controls, and the complete power washing of the 11ft statloo. US $15,000.00 $15,00::>.00 $15,000.00 $15,000.00 $35,000.00 $35,000.00 $22,000.00 $22,000.00 $25,000.00 $25,000.00 $22,400.00 $22,400.00 Removal and disposal of exlstlng wood fence. 2 Exlstlnll wood fence to become property Qf Contractor to be disposed of In a lepl manner. 100 LF $5.00 $500.00 $1.00 $100.00 $10.00 $1,000.00 $17.00 $1,700.00 $10.00 $1,000.00 '8.60 $860.00 RetlabHltation of existing 11ft SQtlon with 3 , submersible FIygt pumps, Ind. guide l1Iils, piplna. valves,fittings, hatch,fIoats, complete In place per the nlans and-~~,,:'=;ilcatlons. 1LS $124000.00 $124,000.00 (177000.00 $177000.00 $100000.00 $100000.00 $159000.00 $159,000.00 $137000.00 $137,000.00 $139400.00 $139400.00 ElectricalSystemlnstaNation prollldeandlnstaU all work shown on plans and described in specifications Indudlngas follows: prollldeand Install pump control panel,llghtlng and 4 receptacles, pump motarfeeders, electrical service equipment, autosensorycontrols, telephone service, and all required appurtenances as shown on plans and as described In speciflcatlons for a completeoperatlngsystem. 1LS $60,000.00 $60,000.00 $3S,000.00 $35,000.00 $55,000.00 $55,000.00 $65,000.00 $65,000.00 $S8,5OO.00 $S8,SOO.00 $54,700.00 $54,700.00 S 12~thlckslaboverexlstlnlwetwell,incl.rebar. COm letein lace. 20" $300.00 $6,000.00 $250.00 $5,000.00 $700.00 $14,000.00 $275.00 $5,500.00 $2,023.00 $40,460.00 $709.60 $14,192.00 6 6" concretecurb,lnd.rebar. COmplete In place. 100 LF $10.00 $1000.00 $5.00 $500.00 15.00 $1500.00 $26.00 $2,600.00 $30.00 $3000.00 $17.20 $1,720.00 , 1" thick cementltlouswaM liner on existing wet (6.00 $5000.00 ... lans. COm leteln lace. 500 SF $8.00 $4000.00 aoo $4000.00 $25.00 $12500.00 $3000.00 $10.00 $11.40 $5700.00 8 100 mils. Raven 405 EpoxyCoatlng on existing wet _" ""'rnlans.COm leteln lace. SOOSF $8.00 $4000.00 $7.00 $3500.00 $25.00 $12,500.00 $14.00 $7000.00 $14.00 $7,000.00 $13.60 $6800.00 9 8' hilh wood fence wtth ptes. Complete In place. 85LF $60.00 $5,100.00 $50.00 $4,250.00 $45.00 $3825.00 $57.00 $4,845.00 $55.00 $4675.00 $53.40 $4,539.00 ,0 8 '" urn In fordul1ltlonof moa. 1LS $20000.00 $20000.00 $10000.00 10000.00 $30000.00 $30,000.00 $10000.00 $10000.00 $24,000.00 $24000.00 $18800.00 $18,800.00 11 Site restol1ltion, Ind. fuU blod soddlnl and to soil. Com letelnnliKe. 2505Y $15.00 $3,750.00 $4.00 $1,000.00 10.00 $2,500.00 $15.00 $3,750.00 $20.00 $5,0CI0.00 $12.80 $3,200.00 rOTAl. ,\MOUNT - B,\S" HIP $;!4.J;I:;O.On '$155,3:iO.UO $l6711l5.00 $lIH.:J'i'i.(J(l $::11.0635,00 $271.JI1,()(I 1\(.TERNATE IlW nEW'; Removal and disposal of existing concrete A-1 drivewayandsldewatk. bcavated concrete to become propertVof Contl1lctortobe dl$pOsedof Inale almanner. 150SY $1S.OO $2250.00 $15.00 $2,250.00 $7S.00 $11.250.00 $22.00 $3,300.00 $12S.OO $18,750.00 $50.40 $7,S6O.OO Removal and disposal of existing concrete curb. A-2 EKcavated concrete to become propertVof COntractor to be dlsPDsed of In a lesal manner. 20LF $20.00 S4OO.00 $1.00 $20.00 $10.00 $200.00 $20.00 $400.00 $25.00 $500.00 $15.20 $304.00 A-' 8" thick concretedrtveway, Ind. rebarand bank (16,940.00 sand. COm letein nl~ce. 2205Y 75.00 $16,500.00 $65.00 $14,300.00 $65.00 $14,300.00 $77.00 $9S.OO $20900.00 $75.40 $16588.00 A~ 12" thick slab irI exlstlngwetwe" botl:om, Ind. rebar. Com letein lace. 6SY $200.00 $1200.00 $165.00 $990.00 $100.00 $4200.00 $400.00 $2.400.00 $1250.00 $7500.00 $543.00 $3,258.00 nr"'L AMOII-.T -.\LTERN,UE BlD ~lIU5U.OO $175(.(/.00 $l'J,'1.S0.IlO '$l:llJ1.Il.OO $47.650.110 i17710,(lO rOTAlAMOUNI BID (R4'i f,ID+ 111f.R\i,,7f.BIO/ $26370000 $27291000 $29771500 SlO713500 $~582U5 00 SlOO,OlIOO 10f1 '" / BIDDER'S LIST SEALED BID #10013 - LIFT STATION 10 REHABILITATION Associated Construction Partners 215 W.Bandera Rd. Suite 114-461 Boerne, TX 78006 G & N Enterprises P.O. Box 2496 Cypress, TX 77410-2496 Peltier Brothers Construction 11603 Windfern Houston, TX 77064 Enviro Remediation 19951 Sand Creek Ct Katy, TX 77449 B-5 Construction PO Box 1488 Magnolia, TX 77353 Lem Construction Co 10849 Kinghurst Suite 150 Houston, TX 77099 R & B Group Inc. 1213 N. Durham Dr. Houston, TX 77008 CSA Construction, Inc 2314 McAllister RD Houston, TX 77092 T & C Construction 5411 Killough Houston, TX 77086 Industrial TX Corporation PO Box 40336 Houston, TX 7724-00336 Mar-Con Services P.O. Box 837 Deer Park, TX 77536 Liftwater Construction, Inc. 22803 Schiel Rd Cypress, TX 77433 R J Construction Company P.O. Box 2181 Missouri City, TX 77459 AGC of Texas (Plan room) 2400 Augusta Dr. Suite #180 Houston, TX 77057 Bayshore Sun Advertising Dates: February 10, 2010 February 17, 2010 D .--- REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 12. 2010 Source of Funds: N/A Requested By: Tim Tietiens Account Number: N/A Department: Plannin2 Amount Budgeted: NI A Report: _Resolution: _Ordinance: l Amount Requested: Exhibits: 1. Ordinance 2. Deed to Adjacent Owner 3. Area Map Budgeted Item: _YES -LNO SUMMARY & RECOMMENDATION The City has received an application from Mr. Nazar Manesia of Telephone Investments, Inc. to vacate, abandon and close the alley in Block 1146, La Porte. The applicant desires to close the subject alley to unify his properties adjacent to the alley for future development. City Staff as well as the City's franchised utility companies (i.e. Centerpoint Energy, AT&T & Comcast) have each reviewed the request and have expressed no objection to the closing. In accordance with Section 62.35 of the Code of Ordinances, Staff has ordered an independent appraisal to determine a fair market value for the property. The appraisal has established a market value of $5.00/sq. ft. for the property which contains 6,400 square feet. The City has received payment from the applicant in the amount of $24,000 (75% of Fair Market Value per the ordinance). Recommendation: Staff recommends vacating, abandoning, and closing the alley in Block 1146, La Porte as requested by the applicant. Action Required of Council: r e an ordinance vacating, abandoning, and closing the alley in Block 1146, La Porte. Ron Bottoms, City Manager 1 hi to Date ORDINANCE NO. 2010- 3d:),C] AN ORDINANCE VACATING, ABANDONING AND CLOSING THE ALLEY IN BLOCK 1146, TOWN OF LA PORTE, HARRIS COUNTY, TEXAS, AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED TO THE ADJOINING LANDOWNER, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City Council of the City of La Porte has been requested by the record owner of all of the property abutting the hereinafter described alley in Block 1146, Town of La Porte, Harris County, Texas; to vacate, abandon, and permanently close the hereinafter described alley in Block 1146, Town of La Porte, Harris County, Texas; and, WHEREAS, the City Council of the city of La Porte has determined and does hereby find, determine, and declare that the hereinafter described alley in Block 1146, Town of La Porte, Harris County, Texas, is not suitable, needed, or beneficial to the public as a public road, street, or alley, and the closing of hereinafter described alley in Block 1146, Town of La Porte, Harris County, Texas, is for the protection of the public and for the public interest and benefit, and that the hereinafter described alley Block 1146, Town of La Porte, Harris County, Texas, should be vacated, abandoned, and permanently closed. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. Under and by virtue of the power granted to the City of La Porte under its home rule charter and Chapter 253, Section 253.001, Texas Local Government Code, the hereinafter described alley in Block 1146, Town of La Porte, Harris County, Texas, is hereby permanently vacated, abandoned, and closed by the City of La Porte, to wit: 2 The entire alley in Block 1146, Town of La Porte situated between Lots 1 through 16 and Lots 17 through 32 of said block, containing a total of 6,400 square feet and generally illustrated on Exhibit UA" incorporated by reference herein. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place, and subj ect 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. 3 PASSBD AND APPROVBD THIS ~ DAY OF ~ 2010. CITY OF LA PORTE ATTEST: - ~~ ILuJ Martha Gillett, City Secretary APPROVED: tz:;;w Knox W. Askins, City Attorney j ~~ J III lJj (!~ !~ I I ('I'i uj i 1 ~~ 1\" ('''\ t~1lli I~,j ~".i I~ 201001.626"9 04/23/2010 RP3 $24.00 DEED WITHOUT WARRANTY NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Date: ~?~L. /Z-, 2010 Grantor: City of La Porte, a municipal corporation Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571 Grantee: Telephone Investments, Inc. lLL Mailing Address: Consideration: Ten and NO/100 Dollars ($10.00) cash and other good and valuable considerations Property (including any improvements) : All of the alley in Block 1146, Town of La Porte, Harris County, Texas, as generally illustrated on Exhibit "A" attached herein and made part hereof, containing a total of six thousand four hundred (6,400) square feet, which alleys were vacated, abandoned, and closed by City of La Porte Ordinance No. 2010-jf~9, passed and approved by the City Council of the City of La Porte on ?f,P,e/~ Iv , 2010. D Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements, and covenants, if any, applicable to and enforceable against the above described property as reflected by the records of the county clerk of the aforesaid county. Grantor for the consideration and subject to the reservations from and exceptions to conveyance, conveys to Grantee the property without express or implied warranty, and all w ran 'es that might arise by common law and the warranties i ~5. 02 of the Texas Property Code (or its successor) are excl ed. STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ ,(This instrument was acknowledged before me on the ~(day of , 2010, by Ron Bottoms, city Manager of the City of La rte, a municipal corporation. , ~ /// tLA ffJC ~\~Ja.JUIAA.- ~ol~ry Public, State of Texas c By: :;~~ ~ ria'-A. a A. Gi lett City Secretary x 'r '\ )> , ' ::JJ :0(") ifl,- 0 'F~' c:' "';z: 2-i ~ 2:-< .'-: _",n .~~ ;:;; "1;0 -r\;;;:; X :>- :/') ,~ I,n ('fj 1'''\ l;fI1/ I I "If' "I W I i !f~ ;z;ed: A7~ nox W. Askins 1 City Attorney kr {'ll# 11,,\ \",,1 l~~ ~~ ;~~\ *.,W SHARON HARRIS My Commission Expires September 12, 2013 AF~ER REC, ORDINq RE~URN TO: PlM> . &b~/ CITY ^;;dLA PORTE ,- 604 West Fairmont Parkway La Porte, TX 77571 ;I ASKINS & ASKINS, P.C, P.O. Box 1218 La Porte, TX 77572-1218 m ~ c::::>> c::::>> 3; :::0 N c..> ." :z "TJ - r fTl o - .. <::) \D PREPARED IN THE LAW OFFICE OF: 00 I.n l~' (;~ \ r~ \J~ \ 1M 1\'" o ANY WallS!)N HEREIN WHK:H RESTRI:TS THE SAlt ftEHTAL Oil USE Of THE DESCftllEI ft~L PROPERTY &CAUSE Of COLOR OR ftACE IS IIIVAlIO AND ~tNfOftCEA&l.E UN~ft FEiEAALLAW, THE STATE OF TEXAS COUNTY OF HARRIS I hem, ,el1fy IIat 11\$ ~mtlIt was FI\.EO ~ Fie Number Siquence In lilt iEi! and tlllt 1M s1alIlltOhlttOll b7 me; IIIl 011 dilly RECORDED. 1ft lilt Of,c,t19~ ftK$IZ of ftul P!lptll! olHmI CNtl,TedS'lI\ e \~!t ~ APR 2 3 2010 ~4~ COUNTY CLERK HARRIS COUNTY. TEXAS 4 898 I~ 1~99 r ij ~~O \ 11.69 I IN.... JJ i ~ _~T-PKWV--- ..-.-., W<it - ..,; . .E_ U) .A"'; : S I - I ,--- ~ I I 1100 ~ 1097 1098 1095 1096 ~ r I I i \ I \ I I i I I L, i i I I I 1137 1136 1135 1134 I 1132 I I I I \ ~~ ~ I (j~ ::J ALLEY BLOCK 1146 ~ I J. (CONTAINING 6,400 S.F.) U I I I ( I I 1144 1145 1146 11 ~ I 1149 .. f ; I I \ I ;......---.--....---.-- \ ~ \ i t~ ~ ... ~ I REGIONAL If DETENTION (j EXHIBIT "A" -. to ORD. NO. 2010 - I i i I I "C 'J!' - ,- -.. " .... -," .~. ....." ....,. "', .... .. ...... ......,.. " .0 ;:,b ',':: ''\:' ':c."...-:_,"." -"'- :.-;-- ~::,::_ ," --'_./.. .,.<.--.- :.:.,:-_ ~~~:t' E ----------- ..------- REQUEST FOR CITY COUNCIL AGENDA ITEM Aoorooriation Agenda Date Requested: Aorill2. 2010 Source of Funds: N/A Requested By: Tim Tietiens Account Number: N/A Department: Planninl! Report: _Resolution: _Ordinance: l Amount Budgeted: N/A Amount Requested: Exhibits: 1. Ordinance 2. Deeds to Adjacent Owners (3) 3. Area Map Budgeted Item: _YES --X-NO SUMMARY & RECOMMENDATION The City has received an application from Mr. Ben Stanford to vacate, abandon and close the southernmost 275' of the alley in Block 4, Town of La Porte containing 4,400 square feet. The applicant desires to close the alley to facilitate future development of Lots 6 thru 27 in the block. City Staff has reviewed the request and expressed no objection to the closing. Mr. Stanford has coordinated with both Centerpoint Energy and AT&T and paid all associated costs to relocate each company's facilities from the alley adjacent to his property. Comcast responded to the closing with a letter of no objection. In accordance with Section 62.35 of the Code of Ordinances, Staff has ordered an independent appraisal conducted of the right-of-way for which fair market value has been established at $1.50 per square foot. The City has subsequently received payment from the applicant in the amount of $4,950 (75% of Fair Market Value per the ordinance). Recommendation: Staff recommends vacating, abandoning, and closing that portion of the alley in Block 4, Town of La Porte situated between Lots 6-16 and Lots 17-27 as requested by the applicant. Action Reauired of Council: Approve an ordinance vacating, abandoning, and closing that portion of the alley in Block 4, Town of orte situated between Lots 6-16 and Lots 17-27. Council Agenda Ron Bottoms, City Manager -~h to Date ORDINANCE NO. 2010- 3;)~ ~ C) AN ORDINANCE VACATING, ABANDONING AND CLOSING A PORTION OF THE ALLEY IN BLOCK 4 , TOWN OF LA PORTE, HARRIS COUNTY, TEXAS, AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED TO THE ADJOINING LANDOWNERS, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the City Council of the City of La Porte has been requested by the record owners of all of the property abutting the hereinafter described portion of the Alley in Block 4, Town of La Porte, Harris County, Texas; to vacate, abandon, and permanently close the hereinafter described portion of the Alley in Block 4, Town of La Porte, Harris County, Texas; and, WHEREAS, the City Council of the City of La Porte has determined and does hereby find, determine, and declare that the hereinafter described portion of the Alley in Block 4, Town of La Porte, Harris County, Texas, is not suitable, needed, or beneficial to the public as a public road, street, or alley, and the closing of hereinafter described portion of the Alley in Block 4, Town of La Porte, Harris County, Texas, is for the protection of the public and for the public interest and benefit, and that the hereinafter described portion of the Alley in Block 4, Town of La Porte, Harris County, Texas, should be vacated, abandoned, and permanently closed. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. Under and by virtue of the power granted to the City of La Porte under its home rule charter and Chapter 253, section 253.001, Texas Local Government Code, the hereinafter described portion of the Alley in Block 4, Town of La Porte, Harris County, Texas, is hereby permanently vacated, abandoned, and closed by the City of La Porte, to wit: 2 Beginning at a point being the northeast corner of Lot 6, Block 4, Town of La Porte, Thence in a southerly direction along the west line of the alley in Block 4, Town of La Porte, to the southeast corner of Lot 16, Block 4, Town of La Porte, a distance of two hundred seventy five (275) feet, Thence in an easterly direction to corner of Lot 17, Block 4, Town of distance of sixteen (16) feet, the La southwest Porte, a Thence in a northerly direction along the east line of the alley in Block 4, Town of La Porte, to the northwest corner of Lot 27, Block 4, Town of La Porte, a distance of two hundred seventy five (275) feet, Thence in a westerly direction to the northeast corner of Lot 6, Block 4, Town of La Porte and point of beginning, containing a total of 4,400 square feet as illustrated on the diagram attached hereto as Exhibit "A" and incorporated by reference herein. 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 i 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. 3 PASSED AND APPROVED THIS _tJlf- DAY OF ~~ 2010. CITY OF LA PORTE B~7~-7 ~rry Bea~y, Mayor / ATTEST: ~d1d Martha Gillett, City Secretary APPROVED: Knox W. Askins, City Attorney ) \)It ~. -5 rl. \~ ~jl-I \'! /'1Ii ~,I J I m Wi I \r~ r\l~ (j ~~ ~ .#1 2010016"""61""" 04/23/2010 RP~ $2~~O DEED WITHOUT WARRANTY NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Date: #"P/€!/t.. lv, 2010 Grantor: City of La Porte, a municipal corporation Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571 Grantee: Ben Stanford (as to an undivided 62.5% interest), and John L. Stanford (as to an undivided 37.5% interest) ~. Mailing Address: 10301 Northwest Freeway #408, Houston, TX 77092 Consideration: Ten and NO/lOa Dollars ($10.00) cash and other good and valuable considerations Property (including any improvements) : The west 1/2 of the alley in Block 4, Town of La Porte, Harris County, Texas, adjacent to Lots 6 and 7, as generally illustrated on Exhibit "A" attached herein and made part hereof, containing a total of four hundred (400) square feet, which Street Right-of-Way was vacated, abandoned, and closed by City of La Porte Ordinance No. 2010-~2~, passed and approved by the city Council of the city of La Porte on ~~L: /~ ,2010. D Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements, and covenants, if any, applicable to and enforceable against the above described property as reflected by the records of the county clerk of the aforesaid county. Grantor for the consideration and subject to the reservations from and exceptions to conveyance, conveys to Grante property without express or implied warranty, and all wa nti that might arise by common law and the warranties i 5.023 the Texas Property Code (or its successor) are excl ed. STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ h. . ,l/<t/l ~. ~s ~nstrument was acknowledged before me on the ~ ~ay of , 2010, by Ron Bottoms, City Manager of the C~ty of La Po te, a municipal corporation. ~ltV~~Of Texas By: Attest: ~aai~;{.Ld Martha A. G~llett City Secretary tf ~g~~" :-; :z: " c -1 \;), ~-< ..... ("') " -.<;:;:; (,\- --1;;0 t:,\,,' cq ;x; .f. ~c ~ ~I ~ ('~i (:;1 I I I (~~j IJi ~ -r ~/'~J" nox W. Askins ( City Attorney ~7~:: t> "1"1 ! ! !,~ r!~~ r~i a~ ~ SHARON HARRIS My Commission Expires September 12. 2013 AFTER RECORDING.; J!ETl}'RN TO: /f// piwn './JtJ/(JW~ I CITY ~LA PORTE 604 West Fairmont Parkway La Porte, TX 77571 /0') r..) ~ ~ ~ '"TJ - r JTI o N (..,) .." :z i ;., - .. \ o PREPARED IN THE LAW OFFICE OF: ASKINS & ASKINS, P.C. P.O. Box 1218 La Porte, TX 77572-1218 (:11 \J~ ('Ij f~1h lql~ { ! (~'J Wi , ! '-r~ c.o f', o:::t' ~ II/! T"- O :J: U') ~ U') \"ji' ;~ 1 inch = 50 feet RESERVE A W75X25FTOFLT1BLK4 ~~ is 1- ~\,.. f\,..i 0\ fiO j.1-~ ~ ~() LTS 6 & 7BLK4 4 LTS 8 & 9 BLK 4 LTS10 THRU 27 BLK 4 1 LTS 17& 18 BLK 21 N W~p. W.C ST --.--.-.-- ~ S LTS 31 & 32 BLK 4 LOCATION OF PROPERTY (400 SQ. FT.) ! I i i I r:.... U') :J: l- ce U') LTS10 THRU BLK4 RECORDER'S MEMORANDUM: No the time of re<:ordaljon, this instrument to be inadequate for the best pho raphic reproduction because of illegibility, carbon r photo copy, discolored paper, etc. All blad:outs, dditions and cha ng es were present at the time the i ment was fi.1€d and recorded. EXHIBIT "A" ~"" \j"J tjl~ rii PIl\ \lill I I ~l '~ I.j/ \ ,~ ('.. i'll, Y ANY PROI'ISOH HEREIN WHICH RESTRK:TS THE sm. ~ENTAL OR USE Of THE OEse~ilE' ~m PROPEIm BECAUSE Of COLOR OR ~ACE IS IHVAUO AND UHENfORCEA!LE UHOE~ fEimL LAW, THE STATE OF TEXAS COUNTY OF HARRIS I he,", certfy ~It Ciis Ilit'IJmtllt W1S FII.Ell iI Fie Numbel s.q.!nce In 1llt ~ an<I It lit ill! slll!I~dhmoo b! mU/lII wtt1u!l RECORDED. 1ft Cie 0Ii0a1 '@Ie ~tCllrilloUql Pruptl1lofHlrll CcIriy.T- 011 APR 2 3 2010 ~~ ~ e ~61~ COUNTY CLERK HARRIS COUNTY, TEXAS 3 ~~ -:s ~1 \,Ii (~I ..'!lIIj (II. I t~' \ . W I I \r~ l~. 1"'\ ~1,ij1 ~ i~ :/I-;v 20100162610 04/23/2010 RP3 $24.00 DEED WITHOUT WARRANTY NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Date: 7!,t1e/L.. /v , 2010 Grantor: City of La Porte, a municipal corporation 604 West Fairmont Parkway, La Porte, TX 77571 Mailing Address: Grantee: Mrs. Zula A. Stanford as Trustee, for the full use and benefit of Jim Norris Stanford. jR Mailing Address: 1801 20th Street #1827, Ames, IA 50010 Consideration: Ten and NO/100 Dollars ($10. OO) cash and other good and valuable considerations Property (including any improvements) : The west 1/2 of the alley in Block 4, Town of La Porte, Harris County, Texas, adj acent to Lots 8 and 9, as generally illustrated on Exhibit "A" attached herein and made part hereof, containing a total of four hundred (400) square feet, which Street Right-of-Way was vacated, abandoned, and closed by City of La Porte Ordinance No. 2010-~~, passed and approved by the City Council of the City of La Porte on ~~~ /~ , 2010. _D Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements, and covenants, if any, applicable to and enforceable against the above described property as reflected by the records of the county clerk of the aforesaid county. Grantor for the consideration and subject to the reservations from and exceptions to conveyance, conveys to Grantee the property without express or implied warranty, and all warranties that might arise by common law and the warranties in .02 of the Texas Property Code (or its successor) are exclu ed. ~ !j COUNTY OF HARRIS ~ ~. This instrument was acknowledged before me on theL~i1day of , 2010, by Ron Bottoms, city Manager of the city of La rte, a municipal corporation. \ ~ClAh~' ory Public, state of Texas By: Attest: ~l!fIadd City Secretary o ~~ I~ ~I I t~.! , f U) I I l/"l r'i. CJ ~d' ~ , / o W. ASkZ::~ City Attorney ~ tr :ng't< co.., ::z :......J. -f ~\ ~ .'\.~~.. z-< --In :<;~ -; :::0 :"1'1:>>r\. ~ t:>- '," STATE TEXAS OF ~j .~~ ~ , .~~~.~-;; ,i.<-:> SHAf<UN HARRIS My Commission Expires September 12, 2013 AFTER RECORDIN~_RETURN TO. ,PIM, , tuh~ CITY ~LA~6RTE 604 West Fairmont Parkway La Porte, TX 77571 J/ PREPARED IN THE LAW OFFICE OF: ASKINS & ASKINS, P.C. P.O. Box 1218 La Porte, TX 77572-1218 1ft ~ c::::t c:::t ~ ..,., N - c...> r ""0 fT1 ::It 0 - .. o \D \l"! III "~ r ~~~ I r I,'i' W I I I \F'i c.o o::j- [I" V"- I :c (:~ C/) C/) rJ,~ ~~ 1 inch = 50 feet RESERVE A W75X25 FT OF LT 1 BU< 4 ~A, "{S ~ ~\... " f\..."{ f"{O :f.~~ ~~O LTS 6 & 7 BLK 4 4 LTS 8 & 9 BLK 4 LTS 10 THRU 27 BLK 4 1 LTS 17 & 18 BLK 21 weST LTS 31 & 32 BLK 4 LTS 28 29 & 30 N W@E s LOCATION OF PROPERTY (400 SQ. FT.) LTS 10 THRU 27 BLK 4 ~ RECORDER'S r<1EMORANDUM: time of recordation, this instrument waSfooM to be Inadequate for t.te bes'i: pho;ographic re roduction oocause of c2it:-on or ph~;t( co ?ddi:.i(r',., an at :i-;t;; tiTrf; the !rJJi,b-;,,:;nID' EXHIBIT "A" rL C/) :::c I- CO C/) N \~ ~I~I ~~ \ jiltj W'l \ If'! r", I~i iJIIt A!ff PROViSON HEREIN WHCH RESTRnS THE Silt W;T!L OR USE OF THE OESWIEI R!AL PROPERTl8K!USE Ij' COLOR OR RACE is INVALiD AND ~ENFORW!lE UNDER FtiHAlL\W. THE STATE OF TEXAS COUNTY OF HARRIS I herell! certty ~IlClis ~mentW1S FIlED ~ Fie Numllel $4qlieC'<;e In\llt Ill\e In(i lltle'ine slImped hmon b! ml.I/I4111l dlJly RECORDED ~ Cle OIOOai p~ Rtolla 01 Rul ?1lJIt", II KIrTS ~,T_OII APR 2 3 2010 ~, fJij ~ e ~4~ COUNTY CLERK HARRIS COUNTY, TEXAS 3 \;u~ J ,,~i \~O (~ CJ I i m I~ illIi I ~~! !~ r;,j r~ ~: #.5 20100162611 04/23/2010 RP3 $24.00 DEED WITHOUT WARRANTY NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. Date: ~~L /,?./ , 2010 Grantor: city of La Porte, a municipal corporation Mailing Address: 604 West Fairmont Parkway, La Porte, TX 77571 Grantee: John L. Stanford, II and Ben D. Stanford ~ Mailing Address: 10301 Northwest Freeway #408, Houston, TX 77092 Consideration: Ten and NO/100 Dollars ($10.00) cash and other good and valuable considerations Property (including any improvements) : The west 1/2 of the alley in Block 4, Town of La Porte, D Harris County, Texas, adjacent to Lots 10 through 16, and the east 1/2 of the alley in Block 4, Town of La Porte, adjacent to Lots 17 through 27, as generally illustrated on Exhibit 11 A" attached herein and made part hereof, containing a total of thirty-six hundred (3,600) square feet, which Street Right-of-way was vacated, abandoned, and closed by City of La Porte Ordinance No. 2010-~Z~, passed and approved by the City Council of the city of La Porte on ~~~~ /~ , 2010. Reservations from and Exception to Conveyance and Warranty: This conveyance is made subject to all and singular the restrictions, conditions, oil, gas, and other mineral reservations, easements, and covenants, if any, applicable to and enforceable against the above described property as reflected by the records of the county clerk of the aforesaid county. ~r \~ \1') Illl\ ~J I ~!I') ~n I v~ r':~ o ~ ~ Grantor for the consideration and subject to the reservations from and exceptions to conveyance, conveys to Grantee the property without express or implied warranty, and all w a ties that might arise by common law and the warranties is. 0 of the Texas Property Code (or its successor) are excl ed. By: I~ Ron Bottoms, City Manager , Attest: ~~ '~- a a A. G llett city Secretary ~ r"" ::0("') -0 ~ 'f> c:: '$';' '-'z . :~ -1 ". . -< ~, ~('") ,., :<::;:; (~\ :;:.;~ -,3: x \j' ,~ ~. \ r-..,) c:::>> <:::I ~ '"11 - r .", o r~ w. Askins Attorney N W -0 .:x - .. o STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ . his instrument was acknowledged before me on the I~ltday of , 2010, by Ron Bottoms, City Manager of the City of La P rte, a municipal corporation. Wf.CWJ( ~A4; ~ Not ry Public, State 0 Texas ~........ ". dk ",' SHAHO"l HA '.' .' M ~ r,(jrrlmlssiofl.E ft ' . ; \\' ~."m'" 1 ~ II"" . ",:f.://, ,~.1 ...._..,......w___..., ............... AFTER RECORD. IN~ RETURN TO. ~Y" p.t.m . /lLh/1/V/~}-- .. CITY ~ LA! PORTE . 604 West Fairmont Parkway La Porte, TX 77571 PREPARED IN THE LAW OFFICE OF. ASKINS & ASKINS, P,C. P,O. Box 1218 La Porte, TX 77572-1218 In I,~ ('~ (:1 , i f~ (I' ,,! i to I 'OII:t ~ ~ I", :t: r; (J) l~j I~~ ;J!ii 1 inch = 51 feet RESERVE A I I 1M 75X25 FT OF LT 1 BLK 4 ~" 1S 1- ~" f ,,1 " f'10 ~?,~ f:. ~() LTS 6 & 7 BLK 4 4 LTS 8 & 9 BLK 4 LTS 10 THRU 27 BLK 4 LTS 17 & 18 BLK 21 weST LTS 31 & 32 BLK 4 LTS 28 29 & 30 BLK 4 LTS 10 THRU 27 BLK 4 N W~E .~ S I- en ::I: I- co en LOCATION OF PROPERTY (3,600 SQ. FT.) RECORDER'S ~m;';ORANDUM: N: the tiJJ~ of recordation, this instrument was nd to be Inadequate for !:tie be:-:t photogra hie reprod~cticn ~us.e of iilegibility, carbon or p ota copy, dlS(olorea paper, ete. Ail biackouts, addi "s and chang,?S werE ;)(esent at the time the instnJ was fiiej and reoxde:J. EXHIBIT "A" \JJ l~ r:'j t:~ I ! ~\'\ , I III i r , If'!I ('r. ~~ rl~ \~1I ANYPRClYISOH HEREIN WHCH RESTRCTS THE S~lUEtlT~l OR USE Of THE OESC~I'Et ~m PROPERTY BECAUSE OF COLOR OR ~ACE IS INVALID ANQ UHENFOftCE.!!lE UNOE~ iuml ~w, THE STATE OF TEXAS COUNTY OF HARRIS I hert!>l cerliy ~Uis ~l1It!lt W1t ,ILEO ~ ,Ie Humbel $tquefll:e tn lllt ~ JIld It ~t line slamped hlltOf1 b! mUM WII dill! WmOEO.ln lie Oir>aal P@icftt<llrOloUuIProptlllolHilTS CMr, Tens on APR 2 3 2010 ~ f!l~ i!IIl e ~61~ COUNTY CLERK HARRIS COUNTY, TEXAS 7 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 12, 2010 Appropriation Requested By: Michael Dolbv, Director of Finance Department: FINANCE Source of Funds: N/A Account Number: N/A Report: Resolution: xx Ordinance: xx Amount Budgeted: Amount Requested: N/A Exhibits PAR Agreement Budgeted Item: Exhibits: Bond Ordinance same PAR A reement Exhibits: Ordinance authorizing LP A W A Bond plus LP A W A Bond Resolution. and Cost Estimate Exhibits: Continuing Disclosure Af:!:reement SUMMARY & RECOMMENDATION At this time, we would like to issue Certificates of Obligation for street improvements, drainage improvements and parks improvements throughout the City and professional services rendered in connection with the issue of debt. Therefore, we are requesting consideration and approval of an ordinance authorizing the issuance of approximately $6,065,000 in City of La Porte Texas Certificates of Obligations, Series 20 I O. We request consideration and approval of an ordinance authorizing the issuance of approximately $4,305,000 in City of La Porte, Texas General Obligation Refunding Bonds, Series 2010 for the purpose of refunding approximately $4,375,000 of callable debt for debt service savings. We request consideration and approval of an ordinance the issuance of approximately $4,055,000 of La Porte Area Water Authority Contract Revenue Refunding Bonds, Series 2010 for the purpose of refunding approximately $4,080,000 of outstanding callable debt for debt service savings. -1/11:: RESOLUTION NO. 2010-~ RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS; AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES; AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE ~ ~ ~ WHEREAS, the City Council (the "City Council") of the City of La Porte, Texas (the "City"), is authorized to issue certificates of obligation to pay contractual obligations to be incurred for the construction of public works, for the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes, and for the payment of contractual obligations for professional services pursuant to Subchapter C of Chapter 271, Texas Local Government Code, as amended; WHEREAS, the City Council has determined that it is in the best interests of the City and otherwise desirable to issue certificates of obligation in a principal amount not to exceed $6.4 million styled "City of La Porte, Texas, Certificates of Obligation, Series 2010" (the "Certificates") for the design, engineering, acquisition and construction of certain public works and the purchase of certain equipment for authorized needs and purposes and for the payment of contractual obligations for professional services; WHEREAS, in connection with the Certificates, the City Council intends to publish notice of its intent to issue the Certificates (the "Notice") in a newspaper of general circUlation in the City; WHEREAS, for purposes of providing for the sale of the Certificates, the City Council intends to authorize the preparation of a Preliminary Official Statement (the "Preliminary Official Statement") to be used in the public offering of the Certificates; and WHEREAS, the City Council has been presented with and has examined the proposed form of Notice and finds that the form and substance thereof are satisfactory. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. Preamble. The facts and recitations contained in the preamble of this Resolution are hereby found and declared to be true and correct. HOU :2987731.1 Section 2. Authorization of Notice. The City Secretary is hereby authorized and directed to deliver the Notice, in the form set forth in Exhibit A hereto, and to publish such Notice on behalf of the City once a week for two (2) consecutive weeks in a newspaper which is of general circulation in the City, the date of the first publication to be at least thirty-one (31) days before the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of the Certificates. Notwithstanding any other provision of this Resolution, the Mayor and City Manager are each hereby authorized to make or approve such revisions, additions, deletions, and variations to the Notice as, in the judgment of the Mayor and/or City Manager and in the opinion of Bond Counsel to the City, may be necessary or convenient to carry out or assist in carrying out the purposes of this Resolution, or as may be required for approval of the Certificates by the Attorney General of Texas; provided, however, that any change to the Notice resulting in material substantive amendments shall be subject to the prior approval of City Council. Section 3. Authorization of a Preliminary Official Statement. This City Council hereby approves the preparation and distribution by the City's financial advisor to prospective purchasers of the Certificates of the Preliminary Official Statement, as the same may be completed, modified, or supplemented with the approval of the Mayor or other authorized officers and agents of the City. Section 4. Authorization of Other Matters Relating Thereto. The Mayor, City Secretary and other officers and agents of the City are hereby authorized and directed to do any and all things necessary or desirable to carry out the provisions of this Resolution. Section 5. passage. Effective Date. This Resolution shall take effect immediately upon its Section 6. Public Meeting. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place and subject matter of the public business to be considered at such meeting, including this Resolution,. was given all as required by the Texas Government Code, Chapter 551, as amended. 2 HOU:2987731.1 EXHIBIT A NOTICE OF INTENTION TO ISSUE CERTIFICATES NOTICE IS HEREBY GIVEN that the City Council of the City of La Porte, Texas (the "City") will meet at its regular meeting place at City Council Chambers, City Hall, 604 West Fairmont Parkway, La Porte, Texas at 6:00 p.m. on April 12, 2010, which is the time and place tentatively set for the passage of an ordinance and such other action as may be deemed necessary to authorize the issuance of the City's certificates of obligation, payable from ad valorem taxation and a limited (in an amount not to exceed $1,000) subordinate pledge of certain revenues of the water and sewer system of the City, in the maximum aggregate principal amount of $6.4 million, bearing interest at any rate or rates, not to exceed the maximum interest rate now or hereafter authorized by law, as shall be determined within the discretion of the City Council at the time of issuance and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City to pay all or any part of the contractual obligations to be incurred for the construction of public works, the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes, to wit: street improvements, drainage improvements and parks improvements throughout the City and professional services rendered in connection with the above listed projects. S-1 HOU:2987731.l ORDINANCE NO. 3231 ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 2010; AND CONTAINING OTHER MATTERS INCIDENT THERETO BElT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: ARTICLE I FINDINGS AND DETERMINATIONS Section 1.1: Findings and Determinations. The City Council hereby officially finds and determines that: (a) The City of La Porte, Texas (the "City"), acting through its City Council, is authorized pursuant to and in accordance with the provisions of Texas Local Government Code, Chapter 271, Subchapter C, as amended (the "Act"), to issue certificates of obligation to provide all or part of the funds to pay contractual obligations to be incurred for the construction of public works and the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes and for the payment of contractual obligations for professional services, to wit (i) street improvements, drainage improvements and parks improvements throughout the City, and (ii) professional services rendered in connection with the above listed projects (b) The City Council authorized the publication of a notice of intention to issue its City of La Porte, Texas, Certificates of Obligation, Series 2010 (the "Certificates") to the effect that the City (:ouncil was tentatively scheduled to meet at 6:00 p.m. on April 12, 2010, at its regular meeting place to adopt an ordinance authorizing the issuance of the Certificates to be payable from (i) an ad valorem tax levied, within the limits prescribed by law, on the taxable property located within the City, and (ii) the revenues to be derived from the City's waterworks and sewer system (the "System") after the payment of all operation and maintenance expenses thereof (the "Net Revenues") in an amount not to exceed $1,000, to the extent that ad valorem taxes are ever insufficient or unavailable for such purposes, provided that the pledge of Net Revenues is and shall be junior and subordinate in all respects to the pledge of Net Revenues to the payment of any obligation of the City, whether authorized heretofore or hereafter, which the City designates as having a pledge senior to the pledge of the Net Revenues to the payment of the Certificates. (c) Such notice was published at the times and in the manner required by the Act. (d) No petition signed by at least five percent (5%) of the qualified voters of the City has been filed with or presented to any official of the City protesting the issuance of such Certificates on or before the date of passage of this Ordinance. (e) The City has determined that it is in the best interests of the City and that it is otherwise desirable to issue the Certificates to provide all or part of the funds to pay contractual obligations to be incurred for the purposes authorized by the Act. 1 HOU:3009660.5 ARTICLE II DEFINITIONS AND INTERPRET A TIONS Section 2.1: Definitions. As used herein, the following terms shall have the meanings specified, unless the context clearly indicates otherwise: "Act" shall mean Texas Local Government Code, Chapter 271, Subchapter C, as amended. "Attorney General" shall mean the Attorney General of the State of Texas. "Certificate" or "Certificates" shall mean any or all of the City of La Porte, Texas, Certificates of Obligation, Series 2010, authorized by this Ordinance. "City" shall mean the City of La Porte, Texas, and, where appropriate, its City Council. "City Council" shall mean the governing body of the City. "Code" shall mean the Internal Revenue Code of 1986, as amended. "Comptroller" shall mean the Comptroller of Public Accounts of the State of Texas. "Debt Service Fund" shall mean the fund by that name created pursuant to Section 5.2 hereof. "Fiscal Year" shall mean the City's then designated fiscal year, which currently is the twelve-month period beginning on the first day of October of a calendar year and ending on the last day of September of the next succeeding calendar year and each such period may be designated with the number of the calendar year in which such period ends. "Interest Payment Date," when used in connection with any Certificate, shall mean March 15, 2011, and each March 15 and September 15 thereafter until maturity or earlier redemption of such Certificate. "Issuance Date" shall mean the date on which the Certificates are delivered to and paid for by the Purchaser. "Ordinance" shall mean this Ordinance and all amendments hereof and supplements hereto. "Outstanding," when used with reference to the Certificates, shall mean, as of a particular date, all Certificates theretofore and thereupon delivered pursuant to this Ordinance except: (a) any Certificates canceled by or on behalf of the City at or before such date; (b) any Certificates defeased pursuant to the defeasance provisions of this Ordinance or otherwise defeased as permitted by applicable law; and (c) any Certificates. in lieu of or in substitution for which a replacement Certificate shall have been delivered pursuant to this Ordinance. 2 HOU:3009660.5 "Paying AgentJRegistrar" shall mean The Bank of New York Mellon Trust Company, National Association, and its successors in that capacity. "Purchaser" shall mean the entity or entities specified in Section 7.1 hereof. "Record Date" shall mean the close of business on the first day of the month in which the applicable Interest Payment Date occurs. "Register" shall mean the registration books for the Certificates kept by the Paying AgentJRegistrar in which are maintained the names and addresses of, and the principal amounts registered to, each Registered Owner of Certificates. "Registered Owner" shall mean the person or entity in whose name any Certificate is registered in the Register. .- Section 2.2: Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth. herein and to sustain the validity of the Certificates and the validity of the levy of ad valorem taxes to pay the principal of and interest on the Certificates. ARTICLE III TERMS OF THE CERTIFICATES Section 3.1: Amount, Purpose and Authorization. The Certificates shall be issued in fully registered form, without coupons, under and pursuant to the authority of the Act in the total authorized aggregate principal amount of SIX MILLION TWO HUNDRED SIXTY FIVE THOUSAND AND NO/lOO DOLLARS ($6,265,000) for the purpose of providing all or part of the funds to pay contractual obligations to be incurred for the purposes described in paragraph 1. 1 (a) hereof, and to pay the costs of issuing the Certificates. Section 3.2: Designation, Date and Interest Payment Dates. The Certificates shall be designated as the "City of La Porte, Texas, Certificates of Obligation, Series 2010," and shall be dated May 1, 2010. The Certificates shall bear interest at the rates set forth in Section 3.3 below, from the later of May 1,2010, or the most recent Interest Payment Date to which interest has been paid or duly provided for, calculated on the basis of a 360-day year of twelve 30-day months, payable on March 15, 2011, and each March 15 and September 15 thereafter until maturity or earlier redemption. If interest on any Certificate is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter, the Paying AgentJRegistrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. . The Paying AgentJRegistrar shall establish a Special Record Date when funds to make such interest payment are received from or on behalf of the City. Such Special Record Date shall be fifteen (15) days 3 HOU:3009660.5 prior to the date fixed for payment of such past due interest, and notice of the date of payment and the Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five (5) days prior to the Special Record Date, to each affected Registered Owner as of the close of business on the day prior to mailing of such notice. Section 3.3: Numbers, Denomination, Interest Rates and Maturities. The Certificates shall be initially issued bearing the numbers, in the principal cunounts and bearing interest at the rates set forth in the following schedule, and may be transferred and exchanged as set out in this Ordinance. The Certificates shall mature on March 15 in each of the years and in the amounts set out in such schedule. Certificates delivered in transfer of or in exchange for other Certificates shall be numbered in order of their authentication by the Paying Agent/Registrar, shall be in the denomination of $5,000 or integral multiples thereof and shall . mature on the same date and bear interest at the same rate as the Certificate or Certificates in lieu of which they are delivered. Certificate Number R-1 R-2 R-3 R-4 R-5 R-6 R-7 R-8 R-9 R-1O R-ll R-12 R-13 R-14 R-15 Year of Maturity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Principal Amount $325,000 335,000 345,000 355,000 370,000 380,000 395,000 410,000 425,000 445,000 460,000 475,000 495,000 515,000 535,000 Section 3.4: Redemption Prior to Maturity. Interest Rate 3.000% 3.000 3.000 3.000 3.000 3.000 4.000 4.000 4.000 4.000 3.625 3.750 3.875 4.000 4.000 (a) The Certificates maturing on and after March 15, 2021, are subject to redemption prior to maturity, at the option of the City, in whole or in part, on March 15, 2020, or any date thereafter, at par plus accrued interest to the date fixed for redemption. (b) Certificates may be redeemed in part only in integral multiples of $5,000. If a Certificate subject to redemption is in a denomination larger than $5,000, a portion of such Certificate may be redeemed, but only in integral multiples of $5,000. In selecting portions of Certificates for redemption, each Certificate shall be treated as representing that number of Certificates of $5,000 denomination which is obtained by dividing the principal amount of such Certificate by $5,000. Upon presentation and surrender of any Certificate for redemption in part, the Paying Agent/Registrar, in accordance with the provisions of this Ordinance, shall HOU:3009660.5 4 authenticate and deliver in exchange therefor a Certificate or Certificates of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Certificate so surrendered. (c) Notice of any redemption, identifying the Certificates or portions thereof to be redeemed, shall be sent by United States mail, first class, postage prepaid, to the Registered Owners thereof at their addresses as shown on the Register, not less than thirty (30) days before the date fixed for such redemption. By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar for the payment of the redemption price of the Certificates called for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, the Certificates which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being Outstanding except for the purpose of being paid with the funds so provided for such payment. Section 3.5: Manner of Payment, Characteristics, Execution and Authentication. The Paying AgentJRegistrar is hereby appointed the paying agent for the Certificates. The Certificates shall be payable, shall have the characteristics and shall be executed, sealed, registered and authenticated, all as provided and in the manner indicated in the FORM OF CERTIFICATES set forth in Article IV of and Exhibit A to this Ordinance. If any officer of the City whose manual or facsimile signature shall appear on the Certificates shall cease to be such officer before the authentication of the Certificates or before the delivery of the Certificates, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. The approving legal opinion of Andrews Kurth LLP, Houston, Texas, Bond Counsel, may be printed on the back of the Certificates over the certification of the City Secretary, which may be executed in facsimile. CUSIP numbers also may be printed on the Certificates, but errors or omissions in the printing of either the opinion or the numbers shall have no effect on the validity of the Certificates. Section 3.6: Authentication. Except for the Certificates to be initially issued, which need not be authenticated by the Registrar, only such Certificates as shall bear thereon a certificate of authentication, substantially in the form provided in Article IV of and Exhibit A to this Ordinance, manually executed by an authorized representative of the Paying AgentJRegistrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Certificate so authenticated was delivered by the Paying Agent/Registrar hereunder. Section 3.7: Ownership. The City, the Paying Agent/Registrar and any other person may treat the person in whose name any Certificate is registered as the absolute owner of such ~ Certificate for the purpose of making and receiving payment of the principal thereof and interest thereon and for all other purposes, whether or not such Certificate is overdue, and neither the City nor the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Registered Owner of any Certificate in accordance with this Section shall be valid and effective and shall discharge the liability of the City and the Paying Agent/Registrar upon such Certificate to the extent of the sums paid. 5 HOU:3009660.5 Section 3.8: Registration, Transfer and Exchange. The Paying Agent/Registrar is hereby appointed the registrar for the Certificates. So long as any Certificate remains Outstanding, the Paying Agent/Registrar shall keep the Register at its office in Dallas, Texas, in which, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the registration and transfer of the Certificates in accordance with the terms of this Ordinance. Each Certificate shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Paying Agent/Registrar, accompanied by an assignment duly executed by the Registered Owner or his authorized representative in form satisfactory to the Paying Agent/Registrar. Upon due presentation of any Certificate for transfer, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor, within seventy-two (72) hours after such presentation, a new Certificate or Certificates, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the Certificate or Certificates so presented and surrendered. All Certificates shall be exchangeable upon the presentation and surrender thereof at the principal corporate trust office of the Paying Agent/Registrar for a Certificate or Certificates of the same maturity and interest rate and in any authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Certificate or Certificates presented for exchange. The Paying Agent/Registrar shall be and is hereby authorized to authenticate and deliver exchange Certificates in accordance with the provisions of this Section. Each Certificate delivered by the Paying Agent/Registrar in accordance with this Section shall be entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of which such Certificate is delivered. All Certificates issued in transfer or exchange shall be delivered to the Registered Owners thereof at the principal corporate trust office of the Paying Agent/Registrar or sent by United States mail, first class, postage prepaid. The City or the Paying Agent/Registrar may require the Registered Owner of any Certificate to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Certificate. Any fee or charge of the Paying Agent/Registrar for such transfer or exchange shall be paid by the City. The Paying Agent/Registrar shall not be required to transfer or exchange any Certificate called for redemption in whole or in part during the forty-five (45) day period immediately prior ->> to the date fixed for redemption; provided, however, that this restriction shall not apply to the transfer or exchange by the Registered Owner of the unredeemed portion of a Certificate called for redemption in part. ~'" Section 3.9: Book-Entry Only System. (a) The definitive Certificates shall be initially issued in the form of a separate single fully registered Certificate for each of the maturities thereof. Upon initial issuance, the ownership of each such Certificate shall be registered in the name of Cede & Co., as nominee of DTC, and except as provided in subsection (b) hereof, all of the Outstanding Certificates shall be registered in the name of Cede & Co., as 6 HOD :3009660.5 nominee of DTC. Upon delivery by DTC to the Paying AgentJRegistrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks being mailed to the Registered Owner at the close of business on the Record Date, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. With respect to Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Certificates. Without limiting the immediately preceding sentence, the City and the Paying AgentJRegistrar shall have no responsibility or obligation with respect to (a) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Certificates, (b) the delivery to any DTC Participant or any other person, other than a holder of the Certificate, as shown on the Register, of any notice with respect to the Certificates, including any notice of redemption or (c) the payment to any DTC Participant or any other person, other than a holder of the Certificate, as shown in the Register of any amount with respect to principal of Certificates, premium, if any, or interest on the Certificates. Except as provided in subsection (c) of this Section 3.9, the City and the Paying AgentJRegistrar shall be entitled to treat and consider the person in whose name each Certificate is registered in the Register as the absolute owner of such Certificate for the purpose of payment of principal of, premium, if any, and interest on Certificates, for the purpose of giving notices of redemption and other matters with respect to such Certificate, for the purpose of registering transfer with respect to such Certificate, and for all other purposes whatsoever. The Paying AgentJRegistrar shall pay all principal of Certificates, premium, if any, and interest on the Certificates only to or upon the order of the respective owners, as shown in the Register as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respeCt to payment of principal of, premium, if any, and interest on the Certificates to the extent of the sum or sums so paid. No person other than an owner shall receive a Certificate evidencing the obligation of the City to make payments of amounts due pursuant to this Ordinance. . (b) Payments and Notices to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, as long as any Certificates are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on the Certificates, and all notices with respect to such Certificates shall be made and given, respectively, in the manner provided in the representation letter of the City to DTC. (c) Successor Securities Depository; Transfer Outside Book-Entry Only System. In the event that the City or the Paying AgentJRegistrar determines that DTC is incapable of discharging its responsibilities described herein and in the representation letter of the City to DTC, and that it is in the best interest of the beneficial owners of the Certificates that they be able to obtain certified Certificates, the City or the Paying AgentJRegistrar shall (a) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC of the appointment of such successor securities depository and transfer one or more separate Certificates to such successor securities depository or (b) notify DTC of the availability through DTC of Certificates and transfer one or more 7 HOU:3009660.5 separate Certificates to DTC Participants having Certificates credited to their DTC accounts. In such event, the Certificates shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names holders of the Certificates transferring or exchanging Certificates shall designate, in accordance with the provisions of this Ordinance. Section 3.10: Replacement Certificates. Upon the presentation and surrender to the Paying Agent/Registrar of a damaged or mutilated Certificate, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor a replacement Certificate, of the same maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The City or the Paying Agent/Registrar may require the Registered Owner of such Certificate to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Paying Agent/Registrar and the City. If any Certificate is lost, apparently destroyed or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and ordinances of the City, and in the absence of notice or knowledge that such Certificate has been acquired bya bona fide purchaser, shall execute, and the Paying Agent/Registrar shall authenticate and deliver, a replacement Certificate of the same maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding, provided that the Registered Owner thereof shall have: (a) furnished to the City and the Paying Agent/Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Certificate; (b) furnished such security or indemnity as may be required by the Paying Agent/Registrar and the City to save and hold them harmless; (c) paid all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Paying Agent/Registrar and any tax or other governmental charge that may be imposed; and (d) met any other reasonable requirements of the City and the Paying AgentJRegistrar. ~, If, after the delivery of such replacement Certificate, a bona fide purchaser of the original Certificate in lieu of which such replacement Certificate was issued presents for payment such original Certificate, the City and the Paying Agent/Registrar shall be entitled to recover such replacement Certificate from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Paying Agent/Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Certificate has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Certificate, authorize the Paying Agent/Registrar to pay such Certificate. 8 HOU:3009660.5 Each replacement Certificate delivered in accordance with this Section shall be entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of which such replacement Certificate is delivered. Section 3.11: Cancellation. All Certificates paid or redeemed in accordance with this Ordinance, and all Certificates in lieu of which exchange Certificates or replacement Certificates are authenticated and delivered in accordance herewith, shall be canceled and destroyed upon the making of proper records regarding such payment or redemption. The Paying AgentlRegistrar shall periodically furnish the City with certificates of destruction of such Certificates. ARTICLE IV FORM OF CERTIFICATES Section 4.1: Form of Certificates. The Certificates, including the Form of Comptroller's Registration Certificate, Form of Paying AgentJRegistrar Authentication Certificate, Form of Assignment and Form of Statement of Insurance, if any, shall be in substantially the form set forth in Exhibit A hereto, with such omissions, insertions and variations as may be necessary or desirable, and not prohibited by this Ordinance. ARTICLE V SECURITY FOR THE CERTIFICATES Section 5.1: Pledge and Levy of Taxes and Revenues. (a) To provide for the payment of principal of and interest on the Certificates, there is hereby levied, within the limits prescribed by law, for the current year and each succeeding year thereafter, while the Certificates . or any part of the principal thereof and the interest thereon remain outstanding and unpaid, an ad valorem tax upon all taxable property within the City sufficient to pay the interest on the Certificates and to create and provide a sinking fund of not less than 2% of the principal amount of the Certificates or not less than the principal payable out of such tax, whichever is greater, with full allowance being made for tax delinquencies and the costs of tax collection, and such taxes, when collected, shall be applied to the payment of principal of and interest on the Certificates by deposit to the Debt Service Fund and to no other purpose. (b) The City hereby declares its purpose and intent to provide and levy a tax legally sufficient to pay the principal of and interest on the Certificates, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax. As long as any Certificates remain outstanding, all moneys on deposit in, or credited to, the Debt Service Fund shall be secured by a pledge of security, as provided by law for cities in the State of Texas. (c) In addition, pursuant to the authority of Chapter 1502, Texas Government Code, as amended, the City also hereby pledges the revenues to be derived from the City's waterworks and sewer system, after the payment of all operation and maintenance expenses thereof (the "Net Revenues"), in an amount not to exceed $1,000, to the payment of the principal of and interest on the Certificates, provided that the pledge of Net Revenues is and shall be junior and 9 HOU:3009660.5 subordinate in all respects to the pledge of Net Revenues to the payment of any obligation of the City, whether authorized heretofore or hereafter, which the City designates as having a pledge senior to the pledge of the Net Revenues to the payment of the Certificates. The City also reserves the right to issue, for any lawful purpose at any time, in one or more installments, bonds, certificates of obligation and other obligations of any kind, secured in whole or in part by a pledge of Net Revenues, that may be prior and superior in right to, on a parity with, or junior and subordinate to the pledge of Net Revenues securing the Certificates. (d) To pay the interest coming due on the Certificates prior to receipt of the taxes levied to pay such interest, there is hereby appropriated from current funds on hand, which are hereby certified to be on hand and available for such purpose, an amount sufficient to pay such interest, and such amount shall be used for no other purpose. Section 5.2: Debt Service Fund. The Certificates of Obligation, Series 2010, Debt Service Fund (the "Debt Service Fund") is hereby created as a special fund solely for the benefit of the Certificates. The City shall establish and maintain such fund at an official City depository and shall keep such fund separate and apart from all other funds and accounts of the City. Any amount on deposit in the Debt Service Fund shall be maintained by the City in trust for the Registered Owners of the Certificates. Such amount, plus any other amounts deposited by the City into such fund and any and all investment earnings on amounts on deposit in such fund, shall be used only to pay the principal of, premium, if any, and interest on the Certificates. Section 5.3: Further Proceedings. After the Certificates to be initially issued have been executed, it shall be the duty of the Mayor to deliver the Certificates to be initially issued and all pertinent records and proceedings to the Attorney General for examination and approval. After the Certificates to be initially issued shall have been approved' by the Attorney General, they shall be delivered to the Comptroller for registration. Upon registration of the Certificates to be initially issued, the Comptroller (or a deputy lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's registration certificate prescribed herein to be affixed or attached to the Certificates to be initially issued, and the seal of said Comptroller shall be impressed, or placed in facsimile, thereon. ARTICLE VI -- CONCERNING THE P A YlNG AGENT/REGISTRAR Section 6.1: Acceptance. The Bank of New York Mellon Trust Company, National Association, is hereby appointed as the initial Paying AgentJRegistrar for the Certificates ~~ pursuant to the terms and provisions of the Paying AgentJRegistrar Agreement by and between the City and the Paying Agent/Registrar. The Paying AgentJRegistrar Agreement shall be substantially in the form attached hereto as Exhibit B, the terms and provisions of which are hereby approved, and the Mayor is hereby authorized to execute and deliver such Paying AgentJRegistrar Agreement on behalf of the City in multiple counterparts and the City Secretary is hereby authorized to attest thereto and affix the City's seal. Such initial Paying AgentJRegistrar and any successor Paying Agent/Registrar, by undertaking the performance of the duties of the Paying Agent/Registrar hereunder, and in consideration of the payment of any fees pursuant to the terms of any contract between the Paying AgentJRegistrar and the City 10 HOD :3009660.5 and/or the deposits of money pursuant to this Ordinance, shall be deemed to accept and agree to -abide by the terms of this Ordinance. Section 6.2: Trust Funds. All money transferred to the Paying Agent/Registrar in its capacity as Paying Agent/Registrar for the Certificates under this Ordinance (except any sums representing Paying Agent/Registrar's fees) shall be held in trust for the benefit of the City, shall be the property of the City and shall be disbursed in accordance with this Ordinance. Section 6.3: Certificates Presented. Subject to the provisions of Section 6.4, all matured Certificates presented to the Paying Agent/Registrar for payment shall be paid without the necessity of further instructions from the City. Such Certificates shall be canceled as provided herein. Section 6.4: Unclaimed Funds Held by the Paying AgentJRegistrar. Funds held by the Paying AgentlRegistrar that represent principal of and interest on the Certificates remaining unclaimed by the Registered Owner thereof after the expiration of three years from the date such funds have become due and payable (a) shall be rePorted and disposed of by the Paying Agent/Registrar in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent such provisions are applicable to such funds, or (b) to the extent such provisions do not apply to the funds, such funds shall be paid by the Paying Agent/Registrar to the City upon receipt by the Paying AgentlRegistrar of a written request therefor from the City. The Paying Agent/Registrar shall have no liability to the Registered Owners of the Certificates by virtue of actions taken in compliance with this Section. Section 6.5: Paying AgentJRegistrar May Own Certificates. The Paying Agent/Registrar in its individual or any other capacity, may become the owner or pledgee of Certificates with the same rights it would have if it were not the Paying Agent/Registrar. Section 6.6: Successor Paying Agents/Registrars. The City covenants that at all times while any Certificates are Outstanding it will provide a legally qualified bank, trust company, financial institution or other agency to act as Paying Agent/Registrar for the Certificates. The City reserves the right to change the Paying Agent/Registrar for the Certificates on not less than sixty (60) days' written notice to the Paying Agent/Registrar, as long as any such notice is effective not less than 60 days prior to the next succeeding principal or interest payment date on the Certificates. Promptly upon the appointment of any successor Paying AgentJRegistrar, the previous Paying AgentJRegistrar shall deliver the Register or a copy thereof to the new Paying Agent/Registrar, and the new Paying AgentJRegistrar shall notify each Registered Owner, by United States mail, first class, postage prepaid, of such change and of the address of the new Paying AgentJRegistrar. Each Paying AgentJRegistrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Ordinance. 11 HOU:3009660.5 ARTICLE VII PROVISIONS CONCERNING SALE AND APPLICATION OF PROCEEDS OF CERTIFICATES - Section 7.1: Sale of Certificates; Insurance. The sale of the Certificates to First Southwest Company (the "Purchaser") at a price of the par value thereof plus a cash premium of $75,180.00, plus accrued interest on the Certificates, is hereby approved, and delivery of the Certificates to the Purchaser, registered in its name, shall be made upon payment therefor in accordance with the Winning Bid attached hereto as Exhibit C. It is hereby officially found, determined and declared that the Purchaser is the highest bidder for the Certificates as a result of invitations for competitive bids. It is further officially found, determined and declared that the Certificates have been sold at public sale to the bidder offering the lowest interest cost, which is hereby determined to be a net effective interest rate of 3.642555%, after receiving sealed bids pursuant to an Official Notice of Sale and Preliminary Official Statement prepared and distributed in connection with the sale of the Certificates. Section 7.2: Approval, Registration and Delivery. The Mayor is hereby authorized to have control and custody of the Certificates and all necessary records and proceedings pertaining thereto pending their delivery, and the Mayor and other officers and employees of the City are hereby authorized and directed to make such certifications and to execute such instruments as may be necessary to accomplish the delivery of the Certificates and to assure the investigation, examination and approval thereof by the Attorney General and the registration of the initial Certificates by the Comptroller. Upon registration of the Certificates, the Comptroller (or the Comptroller's certificates clerk or an assistant certificates clerk lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registration Certificates prescribed herein to be attached or affixed to each Certificates initially delivered and the seal of the Comptroller shall be impressed or printed or lithographed thereon. Section 7.3: Offering Documents; Ratings. The City hereby approves the form and content of the Official Notice of Sale and Preliminary Official Statement, attached hereto as Exhibit D and Exhibit E, respectively, relating to the Certificates, and hereby approves the preparation of the final Official Statement, in substantially the form of the Preliminary Official Statement, with such revisions as are necessary to reflect the terms of the sale of the Certificates, and ratifies and approves the distribution of such Official Notice of Sale and Preliminary Official Statement and approves the distribution of the final Official Statement and any addenda, supplement or amendment thereto, in the offer and sale of the Certificates and in the reoffering of the Certificates by the Purchaser, with such changes therein or additions thereto as the officials executing same may deem advisable, such determination to be conclusively evidenced by their execution thereof. The Mayor is hereby authorized and directed to execute, and the City Secretary is hereby authorized and directed to attest, the final Official Statement. It is further hereby officially found, determined and declared that the statements and representations contained in the Preliminary Official Statement and final Official Statement are true and correct in all material respects, to. the best knowledge and belief of the City Council, and that, as of the date thereof, the Preliminary Official Statement was an official statement of the City with respect to the Certificates that was deemed "final" by an authorized official of the City except for the 12 HOU:3009660.5 omission of no more than the information permitted by subsection (b)(l) of Rule 15c2-12 of the Securities and Exchange Commission. Further, the City Council hereby ratifies, authorizes and approves the actions of the Mayor, the City's financial advisor and other consultants in seeking a rating on the Certificates from Standard & Poor's Ratings Services and such actions are hereby ratified and confirmed. Section 7.4: Application of Proceeds of Certificates; Appropriation. Proceeds from the sale of the Certificates shall, promptly upon receipt by the City, be applied as follows: (1) Accrued interest shall be deposited into the Debt Service Fund created in Section 5.2 of this Ordinance; (2) A portion of the proceeds shall be applied to pay expenses arising in connection with the issuance of the Certificates; and (3) The remaining proceeds shall be applied, together with other funds of the City, to provide funds to pay contractual obligations to be incurred for the purposes set forth in Section 3.1 of this Ordinance. Section 7.5: Tax Exemption. The City intends that the interest on the Certificates shall be excludable from gross income of the owners thereof for federal income tax purposes pursuant to Sections 103 and 141 through 150 of the Internal Revenue Code of 1986, as amended (the "Code"), and all applicable temporary, proposed and final regulations (the "Regulations") and procedures promulgated thereunder and applicable to the Certificates. For this purpose, the City covenants that it will monitor and control the receipt, investment, expenditure and use of all gross proceeds of the Certificates (including all property the acquisition, construction or improvement of which is to be financed directly or indirectly with the proceeds of the Certificates) and take or omit to take such other and further actions as may be required by Sections 103 and 141 through 150 of the Code and the Regulations to cause interest on the Certificates to be and remain excludable from the gross income, as defined in Section 61 of the Code, of the owners of the Certificates for federal income tax purposes. Without limiting the generality of the foregoing, the City shall comply with each of the following covenants: (a) The City will use all of the proceeds of the Certificates to (i) provide funds to pay contractual obligations to be incurred for the purposes set forth in Section 3.1 hereof (the "Project"), which Project will be owned and operated by the City, and (ii) to pay the costs of issuing the Certificates. The City will not use any portion of the proceeds of the Certificates to pay the principal of or interest or redemption premium on, any other obligation of the City or a related person. (b) The City will not directly or indirectly take any action, or omit to take any action, which action or omission would cause the Certificates to constitute "private activity bonds" within the meaning of Section 141(a) of the Code. (c) Principal of and interest on the Certificates will be paid solely from ad valorem taxes and Net Revenues collected by the City, investment earnings on such collections, and as available, proceeds of the Certificates. 13 HOU:3009660.5 (d) Based upon all facts and estimates now known or reasonably expected to be in existence on the date the Certificates are delivered, the City reasonably expects that the proceeds of the Certificates will not be used in a manner that would cause the Certificates or any portion thereof to be an "arbitrage bond" within the meaning of Section 148 of the Code. (e) At all times while the Certificates are outstanding, the City will identify and properly account for all amounts constituting gross proceeds of the Certificates in accordance with the Regulations. The City will monitor the yield on the investments of the proceeds of the Certificates and, to the extent required by the Code and the Regulations, will restrict the yield on such investments to a yield which is not materially higher than the yield on the Certificates. To the extent necessary to prevent the Certificates from constituting "arbitrage bonds," the City will make such payments as are necessary to cause the yield on all yield restricted nonpurpose investments allocable to the Certificates to be less than the yield that is materially higher than the yield on the Certificates. (f) The City will not take any action or knowingly omit to take any action which, if taken or omitted, would cause the Certificates to be treated as "federally guaranteed" obligations for purposes of Section 149(b) of the Code. (g) The City represents that not more than fifty percent (50%) of the proceeds of the Certificates will be invested in nonpurpose investments (as defined in Section 148(f)(6)(A) of the Code) having a substantially guaranteed yield for four years or more within the meaning of Section 149(g)(3)(A)(ii) of the Code, and the City reasonably expects that at least eighty-five percent (85%) of the spendable proceeds of the Certificates will be used to carry out the governmental purpose of the Certificates within the three-year period beginning on the date of issue of the Certificates. (h) The City will take all necessary steps to comply with the requirement that certain amounts earned by the City on the investment of the gross proceeds of the Certificates, if any, be rebated to the federal government. Specifically, the City will (i) maintain records regarding the receipt, investment, and expenditure of the gross proceeds of the Certificates as may be required to calculate such excess arbitrage profits separately from records of amounts on deposit in the funds and accounts of the City allocable to other obligations of the City or moneys which do not represent gross proceeds of any obligations of the City and retain such records for at least six years after the day on which the last outstanding Certificate is discharged, (ii) account for all gross proceeds under a reasonable, consistently applied method of accounting, not employed as an artifice or device to avoid in whole or in part, the requirements of Section 148 of the Code, including any specified method of accounting required by applicable Regulations to be used for all or a portion of any gross proceeds, (iii) calculate, at such times as are required by applicable Regulations, the amount of excess arbitrage profits, if any, earned from the investment of the gross proceeds of the Certificates and (iv) timely pay, as required by applicable Regulations, all amounts required to be rebated to the federal government. In addition, the City will exercise reasonable diligence to assure that no errors are made in the calculations required by the preceding sentence and, if such an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter, including payment to the federal government of any delinquent amounts owed to it, interest thereon and any penalty. 14 HOU:3009660.5 (i) The City will not directly or indirectly pay any amount otherwise payable to the federal government pursuant to the foregoing requirements to any person other than the federal government by entering into any investment arrangement with respect to the gross proceeds of the Certificates that might result in a reduction in the amount required to be paid to the federal government because such arrangement results in a smaller profit or a larger loss than would have resulted if such arrangement had been at arm's length and had the yield on the Certificates not been relevant to either party. G) The City will timely file or cause to be filed with the Secretary of the Treasury of the .United States the information required by Section 149(e) of the Code with respect to the Certificates on such form and in such place as the Secretary may prescribe. (k) The City will not issue or use the Certificates as part of an "abusive arbitrage device" (as defined in Section 148-1O(a) of the Regulations). Without limiting the foregoing, the Certificates are not and will not be a part of a transaction or series of transactions that attempts to circumvent the provisions of Section 148 of the Code and the Regulations by (i) enabling the City to exploit the difference between tax-exempt and taxable interest rates to gain a material financial advantage, or (ii) increasing the burden on the market for tax-exempt obligations. (1) Proper officers of the City charged with the responsibility for issuing the Certificates are hereby directed to make, execute and deliver certifications as to facts, estimates or circumstances in existence as of the date of issuance of the Certificates and stating whether there are facts, estimates or circumstances that would materially change the City's expectations. On or after the date of issuance of the Certificates, the City will take such actions as are necessary and appropriate to assure the continuous accuracy of the representations contained in such certificates. (m)The covenants and representations made or required by this Section are for the benefit of the Certificate holders and any subsequent Certificate holder, and may be relied upon by the Certificate holders and any subsequent Certificate holder and bond counsel to the City. In complying with the foregoing covenants, the City may rely upon an unqualified opinion issued to the City by nationally recognized bond counsel that any action by the City or reliance upon any interpretation of the Code or Regulations contained in such opinion will not cause interest on the Certificates to be includable in gross income of the owners thereof for federal income tax purposes under existing law. Notwithstanding any other provision of this Ordinance, the City's representations and obligations under the covenants and provisions of this Section 7.5 shall survive the defeasance and discharge of the Certificates for as long as such matters are relevant to the exclusion of interest on the Certificates from the gross income of the owners for federal income tax purposes. Section 7.6: Qualified Tax-Exempt Obligations. The City hereby designates the Certificates as "qualified tax-exempt obligations" as defined in Section 265(b)(3) of the Code. With respect to such designation, the City represents the following: (a) that during the calendar year 2010, the City (including all entities which issue obligations on behalf of the City), has not 15 HOU:3009660.5 designated nor will designate obligations, which when aggregated with the Certificates will result in more than $30,000,000 of "qualified tax-exempt obligations" being issued and (b) that the City has examined its financing needs for the calendar year 20 I 0, and reasonably anticipates that the amount of bonds, leases, loans or other obligations, together with the Certificates and any other tax-exempt obligations heretofore issued by the City (plus those of all entities which issue obligations on behalf of the City) during the calendar year 2010, when the higher of the face amount or the issue price of each such tax-exempt obligation issued for the calendar year 2009 by the City is taken into account, will not exceed $30,000,000. Section 7.7: Related Matters. In order that the City shall satisfy in a timely manner all of its obligations under this Ordinance, the Mayor, the Mayor Pro-Tern, City Secretary and all other appropriate officers, agents, representatives and employees of the City are hereby authorized and directed to take all other actions that are reasonably necessary to provide for the issuance and delivery of the Certificates, including, without limitation, executing and delivering on behalf of the City all certificates, consents, receipts, requests, notices, and other documents as may be reasonably necessary to satisfy the City's obligations under this Ordinance and to direct the transfer and application of funds of the City consistent with the provisions of this Ordinance. ARTICLE VITI CONTINUING DISCLOSURE UNDERT AKlNG Section 8.1: Annual Reports. The City shall provide annually to the MSRB, within six months after the end of each fiscal year, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 7.3 of this Ordinance, being the financial information and operating data described in the Official Statement in Tables 1-6 and 8-14 and in Appendix B to the Official Statement. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Appendix B to the Official Statement and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not so provided, then the City shall provide audited financial statements for the applicable fiscal year to the MSRB, when and if audited financial statements become available. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. Section 8.2: Material Event Notices. The City shall notify the MSRB, in a timely manner, of any of the following events with respect to the Certificates, if such event is material within the meaning of the federal securities laws: 16 HOU:3009660.5 (a) Principal and interest payment delinquencies; (b) Non-payment related defaults; (c) Unscheduled draws on debt service reserves reflecting financial difficulties; (d) Unscheduled draws on credit enhancements reflecting financial difficulties; (e) Substitution of credit or liquidity providers, or their failure to perform; (g) Adverse tax opinions or events affecting the tax-exempt status of the Certificates; (h) Modifications to rights of holders of the Certificates; (i) Certificate calls; (j) Defeasances; (k) Release, substitution, or sale of property securing repayment of the Certificates; and (1) Rating changes. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with Section 8.1 of this Ordinance by the time required by such Section. Section 8.3: Limitations, Disclaimers and Amendments. The City shall be obligated to observe and performthe covenants specified in this Article for so long as, but only for so long as, the City remains an "obligated person" with respect to the Certificates within the meaning of the Rule, except that the City in any event will give the notice required by Section 8.2 of any Certificate calls and defeasance that cause the City to be no longer such an "obligated person." The provisions of this Article are for the sole benefit of the holders and beneficial owners of the Certificates, and nothing in this Article, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Article and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's fmancial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Article or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS 17 HOD :3009660.5 PART, OF ANY COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Article shall constitute a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. Nothing in this Article is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Article may be amended by the City from time to time to adapt the changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Article, as so amended, would have permitted an underwriter to purchase or sell the Certificates in the primary offering of the Certificate.s in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Certificates consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the holder and beneficial owners of the Certificates. If the City so amends the provisions of this Article, it shall include with any amended financial information or operating data next provided in accordance with Section 8.1 an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. The City may also amend or repeal the provisions of this Article if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Article in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Certificates in the primary offering of the Certificates, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. Section 8.4: Definitions. As used m this Article, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. 18 HOU:3009660.5 ARTICLE IX MISCELLANEOUS Section 9.1: Defeasance. The City may defease the provisions of this Ordinance and discharge its obligations to the Registered Owners of any or all of the Certificates to pay the principal of arid interest thereon in any manner now or hereafter permitted by law, including by depositing with the Paying AgentlRegistrar, a trust company or commercial bank other than the Paying AgentlRegistrar, or with the Comptroller of Public Accounts of the State of Texas either: (a) cash in an amount equal to the principal amount of such Certificates and premium, if any, and interest thereon to the date of maturity or redemption; or (b) pursuant to an escrow or trust agreement, cash and/or (i) direct noncallable obligations of United States of America, including obligations that are unconditionally guaranteed by the United States of America; (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than "AAA" or its equivalent; or (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that are rated as to investment quality by a nationally recognized investment rating firm not less than "AAA" or its equivalent, which, in the case of (i), (ii) or (iii), may be in book-entry form, and the principal of and interest on which will, when due or redeemable at the option of the holder, without further investment or reinvestment of either the principal amount thereof or the interest earnings thereon, provide money in an amount which, together with other moneys, if any, ~eld in such escrow at the same time and available for such purpose, shall be sufficient to provide for the timely payment of the principal of and interest thereon to the date of maturity or earlier redemption; provided, however, that if any of the Certificates are to be redeemed prior to their respective dates of maturity, provision shall have been made for giving notice of redemption as provided in this Ordinance. Upon such deposit, such Certificates shall no longer be regarded to be Outstanding or unpaid. Any surplus amounts not required to accomplish such defeasance shall be returned to the City. Section 9.2: Ordinance a Contract. Amendments. This Ordinance shall constitute a contract with the Registered Owners from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Registered Owners, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Registered Owners, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Registered Owners who own in the aggregate 51 % of the principal amount of the Certificates then Outstanding, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Registered Owners of Outstanding Certificates, no such amendment, addition, or rescission shall (i) extend the time or times of payment of the principal of and interest on the Certificates, reduce the principal amount thereof, the redemption price, or the rate 19 HOU:3009660.5 of interest thereon, or in any other way modify the terms of payment of the principal of or. interest on the Certificates, (ii) give any preference to any Certificate over any other Certificate, or (iii) reduce the aggregate principal amount of Certificates required to be held by Registered Owners for consent to any such amendment, addition, or rescission. Section 9.3: Legal Holidays. In any case where the date interest accrues and becomes payable on the Certificates or principal of the Certificates matures or the date fixed for redemption of any Certificates or a Record Date shall be in the City a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized by law to close, then payment of interest or principal need not be made on such date, or the Record Date shall not occur on such date, but payment may be made or the Record Date shall occur on the next succeeding day which is not in the City a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized by law to close with the same force and effect as if (i) made on the date of maturity or the date fixed for redemption and no interest shall accrue for the period from the date of maturity or redemption to the date of actual payment or (ii) the Record Date had occurred on the fifteenth calendar day of that month. Section 9.4: Power to Revise Form of Documents. Notwithstanding any other provision of this Ordinance, the Mayor is hereby authorized to make or approve such revisions, additions, deletions, and variations to this Ordinance and in the form of the documents attached hereto as exhibits as, in the judgment of the Mayor, and in the opinion of Bond Counsel to the City, may be necessary or convenient to carry out or assist in carrying out the purposes of this Ordinance, the Preliminary Official Statement, the final Official Statement, or as may be required for approval of the Certificates by the Attorney General of Texas; provided, however, that any changes to such documents resulting in substantive amendments to the terms and conditions of the Certificates or such documents shall be subject to the prior approval of the City Council. Section 9.5: . No Recourse Against City Officials. No recourse shall be had for the payment of principal of or interest on any Certificates or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Certificates. Section 9.6: Further Proceedings~ The Mayor, Mayor Pro-Tern, City Secretary and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the terms of this Ordinance. Section 9.7: Severability. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 9.8: Open Meeting. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at City Hall 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 20 HOU:3009660.5 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 9.9: Repealer. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Section 9.10: Effective Date. This Ordinance shall be in force and effect from and after its passage on the date shown below. [Signature page follows.] 21 HOU:3009660.5 DULY PASSED AND APPROVED this the 12TH day of April, 2010. Mayor ATTEST: L/frI tUd~ A~. City Secretary APPROVED AS TO FORM AND CONTENT: t7~ 1f) ~ City Attorney S-1 HOU :3009660.1 EXHIBIT A FORM OF CERTIFICATE UNITED STATES OF AMERICA STATE OF TEXAS CITY OF LA PORTE, TEXAS, CERTIFICATE OF OBLIGATION SERIES 2010 NUMBER R) REGISTERED DENOMINATION $ REGISTERED INTEREST RATE2: % DATED DATE: May 1,2010 MATURITY DATE2: March 15, _ CUSIP2: REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS THE CITY OF LA PORTE, TEXAS, a municipal corporation of the State of Texas (the "City"), for value received, hereby promises to pay to the Registered Owner identified above or its registered assigns, on the Maturity Date specified above (or on earlier redemption as herein provided), upon presentation and surrender of this Certificate at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, or its successor (the "Paying Agent/Registrar"), the principal amount identified above (or so much thereof as shall not have been paid or deemed to have been paid upon prior redemption) payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due to the United States of America, and to pay interest thereon at the rate shown above, calculated on a basis of a 360-day year composed of twelve 30- day months, from the later of the Dated Date identified above or the most recent interest payment date to which interest has been paid or duly provided for.3 Interest on this Certificate is payable 1 Initial Certificate shall be numbered T-1. 2 Omitted from initial Certificate. 3 The first sentence of the initial Certificate shall read as follows: THE CITY OF LA PORTE, TEXAS, a municipal corporation of the State of Texas (the "City"), for value received, hereby promises to pay to the Registered Owner identified above or its registered assigns, on March 15 of each of the years and in the principal amounts set forth in the following schedule: (Insert information regarding years of maturity, principal amounts and interest rates from Section 3.3 of the Ordinance.] (or on earlier redemption as herein provided), upon presentation and surrender of this Certificate at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, or its successor (the "Paying AgentJRegistrar"), the principal amounts identified above (or so much thereof as shall not have been paid or deemed to have been paid upon prior redemption) payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due to the United States of America, and to pay interest thereon at the rate shown above, calculated on a basis of a 360-day year composed of twelve 30-day months, A-I HOU:3009660.5 on March 15, 2011, and each March 15 and September 15 thereafter until maturity or earlier redemption of this Certificate, by check sent by United States mail, first class, postage prepaid, by the Paying AgentJRegistrar to the Registered Owner of record as of the close of business on the fifteenth calendar day of the month immediately preceding the applicable interest payment date, as shown on the registration books kept by the Paying AgentJRegistrar. Any accrued interest payable at maturity or earlier redemption shall be paid upon presentation and surrender of this Certificate at the principal corporate trust office of the Paying AgentJRegistrar. THIS CERTIFICATE IS ONE OF A DULY AUTHORIZED SERIES OF CERTIFICATES (the "Certificates") in the aggregate principal amount of $6,265,000 issued pursuant to an ordinance adopted by the City Council of the City on April 12, 2010 (the "Ordinance"), for the purpose of providing all or part of the funds to pay contractual obligations to be incurred for the construction of public works and the purchase of materials, supplies, equipment, machinery, buildings, land and rights-of-way for authorized needs and purposes and for the payment of contractual obligations for professional services, to wit (i) street improvements, drainage improvements and parks improvements throughout the City, and (ii) professional services rendered in connection with the above listed projects. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS CERTIFICATE SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HA VB THE SAME FORCE AND EFFECT AS IF SET FORTH AT THIS PLACE.4 THIS CERTIFICATE shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Certificate is authenticated by the Paying AgentJR~gistrar by due execution of the authentication certificate endorsed hereon. 5 from the later of the Dated Date identified above or the most recent interest payment date to which interest has been raid or duly provided for. This paragraph shall be omitted from the initial Certificate and any other Certificate for which text does not appear on the back of a printed certificate. 5 In the initial Certificate, this paragraph shall read: "THIS CERTIFICATE shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Certificate is registered by the Comptroller of Public Accounts of the State of Texas by due execution of the registration certificate endorsed hereon." A-2 HOU:3009660.5 IN WITNESS WHEREOF, the City has caused its corporate seal to be impressed or placed in facsimile hereon and this Certificate to be signed by the Mayor, countersigned by the City Secretary by their manual, lithographed or printed facsimile signatures. CITY OF LA PORTE, TEXAS Mayor (SEAL) COUNTERSIGNED: City Secretary **** [REVERSE OF CERTIFICATE] THE CITY RESERVES THE RIGHT, at its option, to redeem, prior to their maturity, Certificates maturing on or after March 15,2021, in whole or in part, on March 15,2020, or any date thereafter, at par plus accrued interest to the date fixed for redemption. THE CERTIFICATES MAY BE REDEEMED IN PART only in integral multiples of $5,000. If a Certificate subject to redemption is in a denomination larger than $5,000, a portion of such Certificate may be redeemed, but only in integral multiples of $5,000. In selecting portions of Certificates for redemption, each Certificate shall be treated as representing that number of Certificates of $5,000 denomination which is obtained by dividing the principal amount of such Certificate by $5,000. Upon surrender of any Certificate for redemption in part, the Paying Agent/Registrar, in accordance with the provisions of the Ordinance, shall authenticate and deliver in exchange therefor a Certificate or Certificates of like maturity and interest rClte in an aggregate principal amount equal to the unredeemed portion of the Certificate so surrendered. NOTICE OF ANY SUCH REDEMPTION, identifying the Certificates or portions thereof to be redeemed, shall be sent by United States mail, first class, postage prepaid, to the Registered Owners thereof at. their addresses as shown on the books of registration kept by the Paying AgentJRegistrar, not less than thirty (30) days before the date fixed for such redemption. By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar for the payment of the redemption price of the Certificates called for redemption. If such notice of redemption is given, and if due provision for such payment is made, all as provided above, the Certificates which are to be so redeemed thereby automatically shall be redeemed prior to their scheduled maturities, they shall not bear interest after the date fixed for redemption, and they . A-3 HOU:3009660.5 shall not be regarded as being outstanding except for the purpose of being paid with the funds so provided for such payment. THIS CERTIFICATE IS TRANSFERABLE only upon presentation and surrender at the principal corporate trust office of the Paying Agent/Registrar, accompanied by an assignment duly executed by the Registered Owner or its authorized representative, subject to the terms and conditions of the Ordinance. THIS CERTIFICATE IS EXCHANGEABLE at the principal corporate trust office of the Paying AgentlRegistrar for a Certificate or Certificates of the same maturity and interest rate and in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of the Ordinance. THE PAYING AGENT/REGISTRAR is not required to accept for transfer or exchange any Certificate called for redemption, in whole or in part, during the forty-..:five (45) day period immediately prior to the date fixed for redemption; provided, however, that such limitation shall not apply to the transfer or exchange by the Registered Owner of an unredeemed portion of a Certificate called for redemption in part. THE CITY OR PAYING AGENT/REGISTRAR may require the Registered Owner of any Certificate to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of a Certificate. Any fee or charge of the Paying AgentlRegistrar for a transfer or exchange shall be paid by the City. THE REGISTERED OWNER of this Certificate by acceptance hereof, acknowledges and agrees to be bound by all the terms and conditions of the Ordinance. IT IS HEREBY DECLARED AND REPRESENTED that this Certificate has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, exist and to be done precedent to or in the issuance and delivery of this Certificate have been performed, exist and have been done in accordance with law; that the Certificates do not exceed any constitutional or statutory limitation; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied, within the limits prescribed by law, against all taxable property in the City and have been irrevocably pledged for such payment. IT IS FURTHER DECLARED AND REPRESENTED that the revenues to be derived from the City's waterworks and sewer system, after the payment of all operation and maintenance expenses thereof (the "Net Revenues"), in an amount not to exceed $1,000, are pledged to the payment of the principal of and interest on the Certificates, provided that the pledge of Net Revenues is and shall be junior and subordinate in all respects to the pledge of Net Revenues to the payment of any obligation of the City, whether authorized heretofore or hereafter, which the City designates as having a pledge senior to the pledge of the Net Revenues to the payment of the Certificates. The City also reserves the right to issue, for any lawful purpose at any time, in one or more installments, bonds, certificates of obligation and other obligations of any kind, secured in whole or in part by a pledge of Net Revenues, that may be prior and superior in right to, on a parity with, or junior and subordinate to the pledge of Net Revenues securing the Certificates. A-4 HOD :3009660.5 REFERENCE IS HEREBY MADE TO THE ORDINANCE, a copy of which is filed with the Paying Agent/Registrar, for the full provisions thereof, to all of which the Registered Owners of the Certificates assent by acceptance of the Certificates. * * * FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE The following form of Comptroller's Registration Certificate shall be attached or affixed to each of the Certificates initially delivered: THE STATE OF TEXAS REGISTER NO. OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS I hereby certify that this certificate has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and that this certificate has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL OF OFFICE this Comptroller of Public Accounts of the State of Texas [SEAL] * * * FORM OF PAYING AGENTIREGISTRAR'S AUTHENTICATION CERTIFICATE The following form of authentication certificate shall be printed on the face of each of the Certificates other than those initially delivered: AUTHENTICATION CERTIFICATE This Certificate is one of the Certificates described in and delivered pursuant to the within-mentioned Ordinance; and, except for the Certificates initially delivered, this Certificate has been issued in exchange for or replacement of a Certificate, Certificates, or a portion of a . Certificate or Certificates of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. A-5 HOU:3009660.5 By: Authorized Signature Date of Authentication: **** FORM OF ASSIGNMENT The following form of assignment shall be printed on the back of each of the Certificates: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto (Please print or type name, address, and zip code of Transferee) (Please insert Social Security or Taxpayer Identification Number of Transferee) the within certificate and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer such certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature Guaranteed: Registered Owner NOTICE: The signature above must correspond to the name of the Registered Owner as shown on the face of this certificate in every particular, without any alteration, enlargement or change whatsoever. NOTICE: Signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. **** A-6 HOD :3009660.5 HOU:3009660.5 EXIDBIT B FORM OF PAYING AGENTIREGISTRAR AGREEMENT EXHIBIT C WINNING BID HOU:3009660.5 - HOD :3009660.5 EXlIIBIT D OFFICIAL NOTICE OF SALE EXHIBIT E PRELIMINARY OFFICIAL STATEMENT HOU:3009660.5 CERTIFICATE FOR ORDINANCE THE STATE OF TEXAS COUNTY OF HARRIS CITY OF LA PORTE ~ ~ ~ We, the undersigned officers of the City of La Porte, Texas (the "City"), hereby certify as follows: 1. The City Council of the City convened in a regular meeting on April 12 2010, at the regular meeting place thereof, within the City, and the roll was called of the duly constituted officers and members of the City Council, to wit: Barry Beasley John Black Tommy C. Moser Mike Clausen Michael Mosteit Chuck Engelken Daryl Leonard Louis Rigby John Zemanek, Jr. Mayor Mayor Pro Tern Council Member Council Member Council Member Council Member Council Member Council Member Council Member and all of such persons were present except . thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written ORDINANCE AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2010; AUTHORIZING CALL FOR REDEMPTION AND DEFEASANCE OF CERTAIN BONDS AND THE USE OF CERTAIN FUNDS RELATED TO THE BONDS TO BE REFUNDED; AND MAKING OTHER PROVISIONS REGARDING SUCH BONDS, INCLUDING USE OF THE PROCEEDS THEREOF, AND MATTERS INCIDENT THERETO (the "Ordinance") was duly introduced for the consideration of the City Council. It was then duly moved and seconded that the Ordinance be adopted on fIrst reading pursuant to Section 3.09 of the City Charter; and, after due discussion, such motion, carrying with it the adoption of the Ordinance, prevailed and carried by the following vote: AYES: ~ NAYS: ~ ABSTENTIONS: j1 2. That a true, full and correct copy of the Ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certifIcate; that the Ordinance has been duly recorded in the City Council's minutes of such meeting; that the above HOU:30 11 244. I and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of such meeting pertaining to the adoption of the Ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and subject of the aforesaid meeting, and that the Ordinance would be introduced and considered for adoption at such meeting, and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; that such meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of such meeting was given as required by the Open Meetings Law, Chapter 551, Texas Government Code. SIGNED AND SEALED this Ap~ { (~ , 2010. Lj}fi/.;ddLf/ City Secretary City of La Porte, Texas (SEAL) S-1 HOU:3011244.1 ORDINANCE NO. 3232 ORDINANCE AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2010; AUTHORIZING CALL FOR REDEMPTION AND DEFEASANCE OF CERTAIN BONDS AND THE USE OF CERTAIN FUNDS RELATED TO THE BONDS TO BE REFUNDED; AND MAKING OTHER PROVISIONS REGARDING SUCH BONDS, INCLUDING USE OF THE PROCEEDS THEREOF, AND MATTERS INCIDENT THERETO BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: ARTICLE I. FINDINGS AND DETERMINATIONS Section 1.1.: and determines that: Findings and Determinations. The City Council hereby officially finds (a) The City of La Porte, Texas (the "City"), acting through its City Council, has heretofore issued, assumed or undertaken and there remain outstanding the obligations described in Schedule I attached hereto (the "Refunded Obligations"). (b) The City is authorized by Chapter 1207, Texas Government Code, as amended, to issue refunding bonds for the purpose of refunding the Refunded Obligations. (c) The City desires to refund the Refunded Obligations in advance of their maturities, which will benefit the City by reducing total net present value debt servIce. (d) The City is authorized by Chapter 1207, Texas Government Code, as amended, to accomplish such refunding by depositing directly with any place of payment for the Refunded Obligations proceeds from the sale of the refunding bonds authorized herein, together with any other legally available funds, and such deposit shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations. (e) Upon the issuance of the refunding bonds herein authorized and the making of the deposits of a portion of the proceeds of such bonds and other legally available funds of the City, as authorized herein, the Refunded Obligations shall no longer be regarded as being outstanding, except for the purpose of being paid from such deposit. HOD :3009756.3 ARTICLE II. DEFINITIONS AND INTERPRETATIONS Section 2.1.: Definitions. As used herein, the following terms shall have the meanings specified, unless the context clearly indicates otherwise: "Act" shall mean Chapter 1207, Texas Government Code, as amended. "Attorney General" shall mean the Attorney General of the State of Texas. "Bond" or "Bonds" shall mean any or all of the City of La Porte, Texas, General Obligation Refunding Bonds, Series 2010, authorized by this Ordinance. "City" shall mean the City of La Porte, Texas and, where appropriate, its City Council. "City Council" shall mean the governing body of the City. "Comptroller" shall mean the Comptroller of Public Accounts of the State of Texas. "DTC" shall mean The Depository Trust Company, New York, New York, or any successor securities depository. "DTC Participant" shall mean brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. "Debt Service Fund" shall mean the General Obligation Refunding Bonds, Series 2010 Debt Service Fund established by the City pursuant to Section 5.2 hereof. "Fiscal Year" shall mean the City's then designated fiscal year, which currently is the twelve-month period beginning on the first day of October of a calendar year and ending on the last day of September of the next succeeding calendar year and each such period may be designated with the number of the calendar year in which such period ends. "Interest Payment Date," when used in connection with any Bond, shall mean March 15, 2011, and each March 15 and September 15 thereafter until maturity or earlier redemption of such Bond. "Ordinance" shall mean this Ordinance and all amendments hereof and supplements hereto. "Outstanding," when used with reference to the Bonds, shall mean, as of a particular date, all Bonds theretofore and thereupon delivered pursuant to this Ordinance except: (a) any Bonds canceled by or on behalf of the City at or before such date; (b) any Bonds defeased pursuant to the defeasance provisions of this Ordinance or otherwise defeased as permitted by applicable law; and (c) any Bonds in lieu of or in substitution for which a replacement Bond shall have been delivered pursuant to this Ordinance. 2 HOU:3009756.3 "Owner" shall have the meaning set forth under the definition of "Registered Owner." "Paying Agent/Registrar" shall mean The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, and its successors in that capacity. "Paying Agent/Registrar Agreement" shall mean the agreement between the City and the Paying Agent/Registrar setting forth the duties and obligations of the Paying AgentlRegistrar with respect to the Bonds. "Purchaser" shall have the meaning given to such term in Section 7.1 hereof. "Record Date" shall mean the close of business on the firstday of the month in which the applicable Interest Payment Date occurs. "Refunded Obligations" shall mean those obligations described in Schedule I attached hereto, which are being refunded and defeased with the proceeds of the Bonds and other legally available funds of the City, if any. "Register" shall mean the registration books for the Bonds kept by the Paying AgentIRegistrar in which are maintained the names and addresses of, and the principal amounts registered to, each Registered Owner of Bonds. "Registered Owner" or "Owner" shall mean the person or entity in whose name any Bond is registered in the Register. Section 2.2.: Interpretations. All terms defined herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Bonds and the validity of the levy of ad valorem taxes to pay the principal of and interest on the Bonds. ARTICLE III. TERMS OF THE BONDS Section 3.1.: Amount, Purpose and Authorization. (a) The Bonds shall be issued in fully registered form, without coupons, under and pursuant to the authority of the Act in the total authorized aggregate principal amount of FOUR MILLION TWO HUNDRED NINETY FIVE THOUSAND AND NO/lOO DOLLARS ($4,295,000) for the purpose of refunding the Refunded Obligations and paying the costs of issuing the Bonds and refunding the Refunded Obligations. (b) It is hereby found and determined that the refunding of the Refunded Obligations and the issuance of the Bonds will benefit the City by reducing total net present value debt service, and that such benefit is sufficient consideration for the issuance of the Bonds and the issuance of the Bonds is in the best interests of the City. 3 HOU:3009756.3 Section 3.2.: Desi~nation, Date and Payment Date. The Bonds shall be designated as the "City of La Porte, Texas, General Obligation Refunding Bonds, Series 2010," and shall be dated May 1, 2010. The Bonds shall bear interest from the later of May 1, 2010, or the most recent Interest Payment Date to which interest has been paid or duly provided for, at the rate set forth in Section 3.3 below, calculated on the basis of a 360-day year of twelve 30-day months, payable on March 15 and September 15 of each year, commencing March 15, 2011, until maturity or earlier redemption. Section 3.3.: Number, Denomination, Interest Rate and Maturity. (a) The Bonds shall be initially issued bearing the numbers, in the principal amounts and bearing interest at the rates set forth in the following schedule, and may be transferred and exchanged as set out in this Ordinance. The Bonds shall mature on March 1 in the principal amounts set out in such schedule. Bonds delivered in transfer of or in exchange for other Bonds shall be numbered in order of their authentication by the Paying Agent/Registrar, shall be in the denomination of $5,000 or integral multiples thereof and shall mature on the same date and bear interest at the same rate as the Bond or Bonds in lieu of which they are delivered. Bond Maturity Principal Interest Number (March 15) Amount Rate R-1 2011 $365,000 2.500% R-2 2012 400,000 2.000 R-3 2013 385,000 2.000 R-4 2014 490,000 2.500 R-5 2015 480,000 2.750 R-6 2016 470,000 3.000 R-7 2017 465,000 3.000 R-8 2018 460,000 3.500 R-9 2019 455,000 3.750 R-1O 2020 325,000 4.000 Section 3.4.: Redemption Prior to Maturity. The Bonds are not subject to optional or mandatory redemption prior to maturity. Section 3.5.: Manner of Payment, Characteristics, Execution and Authentication. The Paying AgentJRegistrar is hereby appointed the paying agent for the Bonds. The Bonds shall be payable, shall have the characteristics and shall be executed, sealed, registered and authenticated, all as provided and in the manner indicated in the FORM OF BOND set forth in Article IV of and Exhibit A to this Ordinance. If any officer of the City whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of the Bonds or before the delivery of the Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. The approving legal opinion of Andrews Kurth LLP, Houston, Texas, Bond Counsel, may be printed on the back of the Bonds over the certification of the City Secretary, which may be executed in facsimile. CUSIP numbers also may be printed on the Bonds, but errors or 4 HOV:3009756.3 omissions in the printing of either the opinion or the numbers shall have no effect on the validity of the Bonds. Section 3.6.: Authentication. Except for the Bond to be initially issued, which need not be authenticated by the Paying Agent/Registrar, only such Bonds as shall bear thereon a certificate of authentication, substantially in the form provided in Article IV of and Exhibit A to this Ordinance, manually executed by an authorized representative of the Paying Agent/Registrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Bond so authenticated was delivered by the Paying Agent/Registrar hereunder. Section 3.7.: Ownership. The City, the Paying Agent/Registrar and any other person may treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of making and receiving payment of the principal thereof and interest thereon and for all other purposes, whether or not such Bond is overdue, and neither the City nor the Paying AgentlRegistrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Registered Owner of any Bond in accordance with this Section shall be valid and effective and shall discharge the liability of the City and the Paying Agent/Registrar upon such Bond to the extent of the sums paid. Section 3.8.: Registration, Transfer and Exchange. The Paying Agent/Registrar is hereby appointed the registrar for the Bonds. So long as any Bond remains Outstanding, the Paying Agent/Registrar shall keep the Register at its office in Dallas, Texas, in which, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the registration and transfer of the Bonds in accordance with the terms of this Ordinance. Each Bond shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Paying Agent/Registrar, accompanied by an assignment duly executed by the Registered Owner or his authorized representative in form satisfactory to the Paying Agent/Registrar. Upon due presentation of any Bond for transfer, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor, within seventy-two (72) hours after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the Bond or Bonds so presented and surrendered. All Bonds shall be exchangeable upon the presentation and surrender thereof at the principal corporate trust office of the Paying Agent/Registrar for a Bond or Bonds, in any authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Paying Agent/Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section. Each Bond delivered by the Paying Agent/Registrar in accordance with this Section shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. All Bonds issued in transfer or exchange shall be delivered to the Registered Owners thereof at the principal corporate trust office of the Paying Agent/Registrar or sent by United States mail, first class, postage prepaid~ 5 HOU:3009756.3 The City or the Paying Agent/Registrar may require the Registered Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Bond. Any fee or charge of the Paying AgentlRegistrar for such transfer or exchange shall be paid by the City. Section 3.9.: Book-Entry Only System. (a) The definitive Bonds shall be initially issued in the form of a single fully registered Bond for each of the maturities thereof. Upon initial issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as nominee of DTC, and except as provided in subsection (b) hereof, all of the Outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC. Upon delivery by DTC to the Paying AgentlRegistrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Paying AgentlRegistrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Paying AgentlRegistrar shall have no responsibility or obligation with respect to (a) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (b) the delivery to any DTC Participant or any other person, other than a Bondholder, as shown on the Register, of any notice with respect to the Bonds, or (c) the payment to any DTC Participant or any other person, other than a Bondholder, as shown in the Register of any amount with respect to principal of Bonds, premium, if any, or interest on the Bonds. Except as provided in subsection (c) of this Section, the City and the Paying AgentlRegistrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Register as the absolute owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on Bonds, for the purpose of giving notices of redemption, if any, and other matters with respect to such Bond, for the purpose of registering transfer with respect to such Bond, and for all other purposes whatsoever. The Paying AgentlRegistrar shall pay all principal of Bonds only to or upon the order of the respective owners, as shown in the Register as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than an owner shall receive a Bond evidencing the obligation of the City to make payments of amounts due pursuant to this Ordinance. (b) Payments and Notices to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, as long as any Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on the Bonds, and all notices with respect to such Bonds shall be made and given, respectively, in the manner provided in the representation letter of the City to DTC. (c) Successor Securities Depository; Transfer Outside Book-Entry Only System. In the event that the City or the Paying Agent/Registrar determines that DTC is incapable of 6 HOU:3009756.3 discharging its responsibilities described herein and in the representation letter of the City to DTC, and that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City or the Paying Agent/Registrar shall (a) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (b) notify DTC of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC accounts. In such event, the Bonds shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Bondholders transferring or exchanging Bonds shall designate, in accordance with the provisions of this Ordinance. Section 3.10.: Replacement Bonds. Upon the presentation and surrender to the Paying Agent/Registrar of a damaged or mutilated Bond, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor a replacement Bond, of the same maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The City or the Paying Agent/Registrar may require the Registered Owner of such Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Paying Agent/Registrar and the City. If any Bond is lost, apparently destroyed or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and ordinances of the City, and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall execute, and the Paying Agent/Registrar shall authenticate and deliver, a replacement Bond of the same maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding, provided that the Registered Owner thereof shall have: (a) furnished to the City and the Paying Agent/Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Bond; (b) furnished such security or indemnity as may be required by the Paying Agent/Registrar and the City to save and hold them harmless; (c) paid all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Paying Agent/Registrar and any tax or other governmental charge that may be imposed; and (d) met any other reasonable requirements of the City and the Paying Agent/Registrar. If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and the Paying Agent/Registrar shall be entitled to recover such replacement Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of 7 HOU:3009756.3 -any loss, damage, cost or expense incurred by the City or the Paying AgentJRegistrar In connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Bond, authorize the Paying AgentJRegistrar to pay such Bond. Each replacement Bond delivered in accordance with this Section shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such replacement Bond is delivered. Section 3.11.: Cancellation. All Bonds paid in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be canceled and destroyed upon the making of proper records regarding such payment. The Paying AgentJRegistrar shall periodically furnish the City with certificates of destruction of such Bonds. ARTICLE IV. FORM OF BONDS The Bonds, including the Form of Comptroller's Registration Certificate, Form of Paying AgentJRegistrar Authentication Certificate, Form of Assignment and Form of Statement of Insurance, if any, shall be in substantially the form shown in Exhibit A, with such omissions, insertions and variations as may be necessary or desirable and not prohibited by this Ordinance. ARTICLE V. SECURITY FOR THE BONDS Section 5.1.: Pledge and Levy of Taxes. (a) To provide for the payment of principal of and interest on the Bonds, there is hereby levied, within the limits prescribed by law, for the current year and each succeeding year thereafter, while the Bonds or any part of the principal thereof and the interest thereon remain outstanding and unpaid, an ad valorem tax upon all taxable property within the City sufficient to pay the interest on the Bonds and to create and provide a sinking fund of not less than 2% of the principal amount of the Bonds or not less than the principal payable out of such tax, whichever is greater, with full allowance being made for tax delinquencies and the costs of tax collection, and such taxes, when collected, shall be applied to the payment of principal of and interest on the Bonds by deposit to the Debt Service Fund and to no other purpose. (b) The City hereby declares its purpose and intent to provide and levy a tax legally sufficient to pay the principal of and interest on the Bonds, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax. As long as any Bonds remain outstanding, all moneys on deposit in, or credited to, the Debt Service Fund shall be secured by a pledge of security, as provided by law for cities in the State of Texas. 8 HOU :3009756.3 (c) To pay the interest coming due on the Bonds prior to receipt of the taxes levied to pay such interest, there is hereby appropriated from current funds on hand, which are hereby certified to be on hand and available for such purpose, an amount sufficient to pay such interest, and such amount shall be used for no other purpose. Section 5.2.: Debt Service Fund. The General Obligation Refunding Bonds, Series 2010 Debt Service Fund (the "Debt Service Fund") is hereby created as a special fund solely for the benefit of the Bonds. The City shall establish and maintain such fund at an official City depository and shall keep such fund separate and apart from all other funds and accounts of the City. Any amount on deposit in the Debt Service Fund shall be maintained by the City in trust for the Registered Owners of the Bonds. Such amount, plus any other amounts deposited by the City into such fund and any and all investment earnings on amounts on deposit in such fund, shall be used only to pay the principal of, premium, if any, and interest on the Bonds. Section 5.3.: Further Proceedings. After the Bonds to be initially issued have been executed, it shall be the duty of the Mayor to deliver the Bonds to be initially issued and all pertinent records and proceedings to the Attorney General for examination and approval. After the Bonds to be initially issued shall have been approved by the Attorney General, they shall be delivered to the Comptroller for registration. Upon registration of the Bonds to be initially issued, the Comptroller (or a deputy lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's registration certificate prescribed herein to be affixed or attached to the Bonds to be initially issued, and the seal of said Comptroller shall be impressed, or placed in facsimile, thereon. ARTICLE VI. CONCERNING THE PAYING AGENT/REGISTRAR Section 6.1.: Acceptance. The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, is hereby appointed as the initial Paying Agent/Registrar for the Bonds pursuant to the terms and provisions of the Paying Agent/Registrar Agreement by and between the City and the Paying Agent/Registrar. The Paying Agent/Registrar Agreement shall be substantially in the form attached hereto as Exhibit B, the terms and provisions of which are hereby approved, and the Mayor is hereby authorized to execute and deliver such Paying Agent/Registrar Agreement on behalf of the City in multiple counterparts and the City Secretary is hereby authorized to attest thereto and affix the City's seal. Such initial Paying Agent/Registrar and any successor Paying Agent/Registrar, by undertaking the performance of the duties of the Paying Agent/Registrar hereunder, and in consideration of the payment of any fees pursuant to the terms of any contract between the Paying Agent/Registrar and the City and/or the deposits of money pursuant to this Ordinance, shall be deemed to accept and agree to abide by the terms of this Ordinance. Section 6.2.: Trust Funds. All money transferred to the Paying Agent/Registrar in its capacity as Paying Agent/Registrar for the Bonds under this Ordinance (except any sums representing Paying Agent/Registrar's fees) shall be held in trust for the benefit of the City, shall be the property of the City and shall be disbursed in accordance with this Ordinance. 9 HOU:3009756.3 Section 6.3.: Bonds Presented. Subject to the provisions of Section 6.4, all matured Bonds presented to the Paying Agent/Registrar for payment shall be paid without the necessity of further instructions from the City. Such Bonds shall be canceled as provided herein. Section 6.4.: Unclaimed Funds Held by the Paying Agent/Registrar. Funds held by the Paying Agent/Registrar that represent principal of and interest on the Bonds remaining unclaimed by the Registered Owner thereof after the expiration of three years from the date such funds have become due and payable (a) shall be reported and disposed of by the Paying Agent/Registrar in accordance with the provisions of Title 6 of the Texas Property Code, as amended, to the extent such provisions are applicable to such funds, or (b) to the extent such provisions do not apply to the funds, such funds shall be paid by the Paying Agent/Registrar to the City upon receipt by the Paying Agent/Registrar of a written request therefor from the City. The Paying Agent/Registrar shall have no liability to the Registered Owners of the Bonds by virtue of actions taken in compliance with this Section. Section 6.5.: Paying Agent/Registrar May Own Bonds. The Paying Agent/Registrar in its individual or any other capacity, may become the owner or pledgee of Bonds with the same rights it would have if it were not the Paying Agent/Registrar. Section 6.6.: Successor Paying Agents/Registrars. The City covenants that at all times while any Bonds are Outstanding it will provide a legally qualified bank, trust company, financial institution or other agency to act as Paying Agent/Registrar for the Bonds. The City reserves the right to change the Paying Agent/Registrar for the Bonds on not less than sixty (60) days' written notice to the Paying Agent/Registrar, as long as any such notice is effective not less than 60 days prior to the payment date for the Bonds. Promptly upon the appointment of any successor Paying Agent/Registrar, the previous Paying Agent/Registrar shall deliver the Register or a copy thereof to the new Paying Agent/Registrar, and the new Paying Agent/Registrar shall notify each Registered Owner, by United States mail, first class, postage prepaid, of such change and of the address of the new Paying Agent/Registrar. Each Paying Agent/Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Ordinance. ARTICLE VII. PROVISIONS CONCERNING SALE AND DELIVERY OF BONDS: Section 7.1.: Sale and Delivery of Bonds; Insurance. The sale of the Bonds is hereby awarded to Robert W. Baird & Co., Inc. (the "Purchaser") at a price of the par value thereof, plus a cash premium of $64,890.05, plus accrued interest to their date of delivery, and delivery of the Bonds to the Purchaser shall be made upon payment therefor in accordance with the Winning Bid attached hereto as Exhibit C. It is hereby officially found, determined and declared that the Purchaser is the highest bidder for the Bonds as a result of invitations for competitive bids. It is further officially found, determined and declared that the Bonds have been sold at public sale to the bidder offering the lowest interest cost, which is hereby determined to be a net effective interest rate of 2.914360%, after receiving sealed bids pursuant 10 HOU :3009756.3 to an Official Notice of Sale and Preliminary Official Statement prepared and distributed in connection with the sale of the Bonds. Section 7.2.: Approval, Registration and Delivery. The Mayor is hereby authorized to have control and custody of the Bonds and all necessary records and proceedings pertaining thereto pending their delivery, and the Mayor and other officers and employees of the City are hereby authorized and directed to make such certifications and to execute such instruments as may be necessary to accomplish the delivery of the Bonds and to assure the investigation, examination and approval thereof by the Attorney General and the registration of the initial Bonds by the Comptroller. Upon registration of the Bonds, the Comptroller (or the Comptroller's certificates clerk or an assistant certificates clerk lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registration Certificates prescribed herein to be attached or affixed to each Certificates initially delivered and the seal of the Comptroller shall be impressed or printed or lithographed thereon. Section 7.3.: Offering Documents; Ratings. The City hereby approves, ratifies and confirms the form and contents of the Official Notice of Sale and Preliminary Official Statement, attached hereto as Exhibit D and Exhibit E, respectively, and hereby approves the preparation of the final Official Statement, in substantially the form of the Preliminary Official Statement, with such revisions as are necessary to reflect the terms of the sale of the Bonds, and ratifies and approves the distribution of such Official Notice of Sale and Preliminary Official Statement and approves the distribution of the final Official Statement and any addenda, supplement or amendment thereto, in the offer and sale of the Bonds and in the reoffering of the Bonds by the Purchaser, with such changes therein or additions thereto as the officials executing same may deem advisable, such determination to be conclusively evidenced by their execution thereof. The Mayor is hereby authorized and directed to execute, and the City Secretary is hereby authorized and directed to attest, the final Official Statement. It is further hereby officially found, determined and declared that the statements and representations contained in the Preliminary Official Statement and final Official Statement are true and correct in all material respects, to the best knowledge and belief of the City Council, and that, as of the date thereof, the Preliminary Official Statement was an official statement of the City with respect to the Bonds that was deemed "final" by an authorized official of the City except for the omission of no more than the information permitted by subsection (b)(1) of Rule 15c2-12 of the Securities and Exchange Commission. Further, the City Council hereby ratifies, authorizes and approves the actions of the Mayor, the City's financial advisor and other consultants in seeking ratings on the Bonds from Standard & Poor's Ratings Group and such actions are hereby ratified and confirmed. Section 7.4.: Application of Proceeds of Bonds. (a) Proceeds from the sale of the Bonds shall, promptly upon receipt by the City, be applied as follows: (1) A portion of the proceeds shall be applied to pay expenses arising in connection with the issuance of the Bonds and the refunding of the Refunded Obligations; (2) Proceeds in the amount of $4,302,262.86 shall be deposited with the paying agent for the Refunded Obligations; and 11 HOU:3009756.3 (3) Accrued interest and any proceeds from the sale of the Bonds remaining after making all the foregoing deposits and payments shall be deposited into the Debt Service Fund and used to pay debt service on the Bonds. (b) From the existing debt service funds for the Refunded Obligations there shall be transferred to the paying agent for the Refunded Obligations the amount of $107,500.00 and to the Debt Service Fund $0.00. Section 7.5.: Tax Exemption. The City intends that the interest on the Bonds shall be excludable from gross income of the owners thereof for federal income tax purposes pursuant to Sections 103 and 141 through 150 of the Internal Revenue Code of 1986, as amended, (the "Code") and all applicable temporary, proposed and final regulations (the "Regulations") and procedures promulgated thereunder and applicable to the Bonds. For this purpose, the City covenants that it will monitor and control the receipt, investment, expenditure and use of all gross proceeds of the Bonds (including all property, the acquisition, construction or improvement of which is to be financed directly or indirectly with the proceeds of the Bonds) and take or omit to take such other and further actions as may be required by Sections 103 and 141 through 150 of the Code and the Regulations to cause the interest on the Bonds to be and remain excludable from the gross income, as defined in Section 61 of the Code, of the owners of the Bonds for federal income tax purposes. Without limiting the generality of the foregoing, the City shall comply with each of the following covenants: (a) The City shall not use, permit the use of or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which, if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City shall have received a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. (b) Except as permitted by section 141 of the Code and the regulations and rulings thereunder, the City shall, at all times prior to the last stated maturity of the Bonds, (1) exclusively own, operate, and possess all property the acquisition, construction, or improvement of which is to be financed directly or indirectly with Gross Proceeds of such series of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations or notes or bonds refunded by the Refunded Obligations and not use or permit the use of such Gross Proceeds or any property acquired, constructed, or improved with such Gross Proceeds in any activity carried on by any person or entity other than a state or local government, unless such use is solely as a member of the general public, or (2) not directly or indirectly impose or accept any charge or other payment for use of Gross Proceeds of such series of the Bonds or any property the acquisition, 12 HOU:3009756.3 construction or improvement of which is to be financed directly or indirectly with such Gross Proceeds (including property financed with Gross Proceeds of the Refunded Obligations or notes or bonds refunded by the Refunded Obligations other than taxes of general application and interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (c) Except to the extent permitted by section 141 of the Code and the regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, Gross Proceeds are considered to be "loaned" to a person or entity if (1) property acquired, constructed or improved with Gross Proceeds (including property financed with Gross Proceeds of the Refunded Obligations or notes or bonds refunded by the Refunded Obligations is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes, (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output, or similar contract or arrangement, or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or such property are otherwise transferred in a transaction which is the economic equivalent of a loan. (d) Except to the extent permitted by section 148 of the Code and the regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the final stated maturity or final payment of the Refunded Obligations, directly or indirectly invest Gross Proceeds of such Bonds in any Investment (or use such Gross Proceeds to replace money so invested), if as a result of such investment the Yield of all Investments allocated to such Gross Proceeds whether then held or previously disposed of, exceeds the Yield on the Refunded Obligations. (e) Based on all of the facts and estimates now known or reasonably expected to be in existence on the date the Bonds are delivered, the City reasonably expects that the proceeds of the Bonds and the Refunded Obligations (to the extent any of such proceeds remain unexpended) will not be used in a manner that would cause the Bonds or the Refunded Obligations or any portion thereof to be "arbitrage bonds" within the meaning of Section 148 of the Code. (f) At all times while the Bonds are outstanding, the City will identify and properly account for all amounts constituting gross proceeds of the Bonds in accordance with the Regulations. The City will monitor the yield on the investments of the proceeds of the Bonds and, to the extent required by the Code and the Regulations, will restrict the yield on such investments to a yield which is not materially higher than the yield on the Bonds. To the extent necessary to prevent the Bonds from constituting "arbitrage bonds," the City will make such payments as are necessary to cause the yield on all yield-restricted nonpurpose investments allocable to the Bonds to be less than the yield that is materially higher than the yield on the Bonds; (g) Except to the extent permitted by Section 149(b) of the Code and the regulations and rulings thereunder, the City will not take any action or omit to take any action, if taken or omitted, would cause the Bonds to be treated as "federally guaranteed" obligations within the meaning of Section 149(b) of the Code and the regulations and rulings thereunder; 13 HOU:3009756.3 (h) The City represents that not more than fifty percent (50%) of the proceeds of any new money portion of the Bonds or any new money issue refunded by, the Refunded Obligations was invested in nonpurpose investments (as defined in Section 148(f)(6)(A) of the Code) having a substantially guaranteed yield for four years or more within the meaning of Section 149(g)(3)(A)(ii) of the Code, and the City reasonably expects regarding the Bonds, and expected on the Issue Date of the Refunded Obligations, that at least eighty-five percent (85%) of the Net Sale Proceeds (as defined in Section 1.148-1 (b) of the Regulations) proceeds of the Refunded Obligations would be used to carry out the governmental purpose of the Refunded Obligations within the three years of the Issue Date of the such Bonds. (i) The City will take all necessary steps to comply with the requirement that certain amounts earned by the City on the investment of the gross proceeds of the Bonds, if any, be rebated to the federal government. Specifically, the City will (i) account for, and maintain records regarding, the receipt, expenditure and investment of the gross proceeds of the Bonds as may be required to calculate such excess arbitrage profits separately from records of amounts on deposit in the funds and accounts of the City allocable to other obligations of the City or moneys which do not represent gross proceeds of any obligations of the City and retain such records for at least six years after the date on which the last outstanding Bond is discharged or the Final Computation Date (as defined in Section 1.148-3 of the Regulations), (ii) account for all gross proceeds under a reasonable, consistently applied method of accounting, not employed as an artifice or device to avoid, in whole or in part, the requirements of Section 148 of the Code, including any specified method of accounting required by applicable Regulations to be used for all or a portion of the gross proceeds, (iii) calculate, at such times as are required by applicable Regulations, the amount of excess arbitrage profits, if any, earned from the investment of the gross proceeds of the Bonds and (iv) timely pay, as required by applicable Regulations, all amounts required to be rebated to the federal government. In addition, the City will exercise reasonable diligence to assure that no errors are made in the calculations required by the preceding sentence and, if such an error is made, to discover and promptly correct such error within a reasonable amount of time after discovery thereof, including payment to the federal government of any delinquent amounts owed to it, including interest thereon and penalty. (j) Except to the extent permitted by Section 148 of the Code, and the regulations and rulings thereunder, the City will not indirectly pay any amount otherwise payable to the federal government pursuant to the foregoing requirements to any person other than the federal government by entering into any investment arrangement with respect to the gross proceeds of the Bonds that might result in a reduction in the amount required to be paid to the federal government because such arrangement results in smaller profit or a larger loss than would have resulted if such arrangement had been at arm's length and had the yield on the issue not been relevant to either party (k) The City will timely file or cause to be filed with the Secretary of the Treasury of the United States the information required by Section 149(e) of the Code with respect to the Bonds on such form and in such place as the Secretary may prescribe. (1) The City will not issue or use the Bonds as part of an "abusive arbitrage device" (as defined in Section 1.148-1O(a) of the Regulations). Without limiting the foregoing, the Bonds are not and will not be a part of a transaction or series of transactions that attempts to circumvent 14 HOU :3009756.3 the provisions of Section 148 of the Code and the Regulations, by (i) enabling the City to exploit the difference between tax-exempt and taxable interest rates to gain a material financial advantage, or (ii) increasing the burden on the market for tax-exempt obligations. (m) Proper officers of the City charged with the responsibility for issuing the Bonds are hereby directed to make, execute and deliver certifications as to facts, estimates or circumstances in existence as of the Issue Date and stating whether there are facts, estimates or circumstances that would materially change the City's expectations. On or after the Issue Date, the City will take such actions as are necessary and appropriate to assure the continuous accuracy of the representations contained in such certificates. (n) The covenants and representations made or required by this Section are for the benefit of the Bond holders and any subsequent Bond holder, and may be relied upon by the Bondholder and any subsequent Bondholder and bond counsel to the City. In complying with the foregoing covenants, the City may rely upon an unqualified opinion issued to the City by nationally recognized bond counsel that any action by the City or reliance upon any interpretation of the Code or Regulations contained in such opinion will not adversely affect the excludability of interest on the Bonds from gross income for federal income tax purposes under existing law. Notwithstanding any other provision of this Ordinance, the City's representations and obligations under the covenants and provisions of this Section shall survive the defeasance and discharge of the Bonds for as long as such matters are relevant to the exclusion of interest on the Bonds from the gross income of the owners for federal income tax purposes. Section 7.6.: Qualified Tax-Exempt Obligations. The City hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3) of the Code. With respect to such designation, the City represents the following: (a) that during the calendar year 2010, the City (including all entities which issue obligations on behalf of the City), has not designated nor will designate obligations, which when aggregated with the Bonds will result in more than $30,000,000 of "qualified tax-exempt obligations" being issued and (b) that the City has examined its financing needs for the calendar year 2010, and reasonably anticipates that the amount of bonds, leases, loans or other obligations, together with the Bonds and any other tax- exempt obligations heretofore issued by the City (plus those of all entities which issue obligations on behalf of the City) during the calendar year 2010, when the higher of the face amount or the issue price of each such tax-exempt obligation issued for the calendar year 2009 by the City is taken into account, will not exceed $30,000,000. Section 7.8.: Related Matters. In order that the City shall satisfy in a timely manner all of its obligations under this Ordinance, the Mayor, City Secretary and all other appropriate officers, agents, representatives and employees of the City are hereby authorized and directed to take all other actions that are reasonably necessary to provide for the issuance and delivery of the Bonds, including, without limitation, executing and delivering on behalf of the City all certificates, consents, receipts, requests, notices, and other documents as may be reasonably necessary to satisfy the City's obligations under this Ordinance and to direct the transfer and application of funds of the City consistent with the provisions of this Ordinance. 15 HOU:3009756.3 ARTICLE VIII. CONTINUING DISCLOSURE UNDERTAKING Section 8.1.: Annual Reports. The City shall provide annually to the MSRB, within six months after the end of each fiscal year, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 7.3 of this Ordinance, being the financial information and operating data described in the Official Statement in Tables 1-6 and 8-14 and in Appendix B to the Official Statement. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Appendix B to the Official Statement and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not so provided, then the City shall provide audited financial statements for the applicable fiscal year to the MSRB, when and if audited financial statements become available. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEe. Section 8.2.: Material Event Notices. The City shall notify the MSRB, in a timely manner, of any of the following events with respect to the Certificates, if such event is material within the meaning of the federal securities laws: (a) Principal and interest payment delinquencies; (b) Non-payment related defaults; (c) Unscheduled draws on debt service reserves reflecting financial difficulties; (d) Unscheduled draws on credit enhancements reflecting financial difficulties; (e) Substitution of credit or liquidity providers, or their failure to perform; (D Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (g) Modifications to rights of holders of the Bonds; (h) Bond calls; (i) Defeasances; G) Release, substitution, or sale of property securing repayment of the Bonds; and 16 HOU:3009756.3 (k) Rating changes. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with Section 8.1 of this Ordinance by the time required by such Section. Section 8.3.: Limitations, Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Article for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give the notice required by Section 8.2 of any Bond calls and defeasance that cause the City to be no longer such an "obligated person." The provisions of this Article are for the sole benefit of the holders and beneficial owners of the Bonds, and nothing in this Article, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Article and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Article or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE ORIN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Article shall constitute a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. Nothing in this Article is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Article may be amended by the City from time to time to adapt the changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Article, as so amended, would have permitted an underwriter to purchase or sell the Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the holders of a majority in aggregate principal 17 HOU:3009756.3 amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the holder and beneficial owners of the Bonds. If the City so amends the provisions of this Article, it shall include with any amended financial information or operating data next provided in accordance with Section 8.1 an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. The City may also amend or repeal the provisions of this Article if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Article in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. . Section 8.4.: Definitions. As used in this Article, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. ARTICLE IX. MISCELLANEOUS Section 9.1.: Defeasance. The City may defease the provisions of this Ordinance and discharge its obligations to the Registered Owners of any or all of the Bonds to pay the principal of and interest thereon in any manner now or hereafter permitted by law, including by depositing with the Paying Agent/Registrar, a trust company or commercial bank other than the Paying Agent/Registrar, or with the Comptroller of Public Accounts of the State of Texas either: (a) cash in an amount equal to the principal amount of such Bonds plus interest thereon to the date of maturity or earlier redemption; or (b) pursuant to an escrow or trust agreement, cash and/or (i) direct noncallable obligations of United States of America, including obligations that are unconditionally guaranteed by the United States of America; (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; or (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that are rated as to investment quality by a nationally recognized investment rating firm not less than 18 HOD :3009756.3 AAA or its equivalent, which, in the case of (i), (ii) or (iii), may be in book-entry form, and the principal of and interest on which will, when due or redeemable at the option of the holder, without further investment or reinvestment of either the principal amount thereof or the interest earnings thereon, provide money in an amount which, together with other moneys, if any, held in such escrow at the same time and available for such purpose, shall be sufficient to provide for the timely payment of the principal of and interest thereon to the date of maturity or earlier redemption; provided, however, that if any of the Bonds are to be redeemed prior to their respective dates of maturity, provision shall have been made for giving notice of redemption as provided in this Ordinance. Upon such deposit, such Bonds shall no longer be regarded to be Outstanding or unpaid. Any surplus amounts not required to accomplish such defeasance shall be returned to the City. Section 9.2.: Legal Holidays. In any case where the date interest accrues and becomes payable on the Bonds or principal of the Bonds matures or a Record Date shall be in the City a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized by law to close, then payment of interest or principal need not be made on such date, or the Record Date shall not occur on such date, but payment may be made or the Record Date shall occur on the next succeeding day which is not in the City a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized by law to close with the same force and effect as if (i) made on the date of maturity and no interest shall accrue for the period from the date of maturity to the date of actual payment or (ii) the Record Date had occurred on the last day of that calendar month. Section 9.3.: No Recourse Against City Officials. No recourse shall be had for the payment of principal of or interest on any Bonds or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Bonds. Section 9.4.: Further Proceedings. The Mayor, City Secretary and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the terms of this Ordinance. The Mayor, City Secretary and other appropriate officials of the City are each hereby authorized to execute, attest and impress the City's seal to such other agreements, assignments, bonds, certificates, contracts, documents, licenses, instruments, releases, financing statements, letters of instruction, notices of acceptance, notices of final payment, written requests and other documents, and to take all actions and to do all things whether or not mentioned herein, as may be necessary or convenient to carry out or assist in carrying out the purposes of this Ordinance and the Bonds. Section 9.5.: Severability. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 9.6.: Open Meeting. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at 19 HOU:3009756.3 which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at City Hall 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 9.7.: Repealer. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. Section 9.8.: Effective Date. This Ordinance shall be in force and effect from and after its passage on the date shown below. Section 9.9.: Power to Revise Form of Documents. Notwithstanding any other provision of this Ordinance, the Mayor, City Secretary and other appropriate officials of the City are each hereby authorized to make or approve such revisions, additions, deletions and variations in the form of the documents attached hereto as exhibits as, in the judgment of the Mayor, City Secretary and other appropriate officials of the City, and in the opinion of Bond Counsel to the City, as may be necessary or convenient to carry out or assist in carrying out the purposes of this Ordinance, the Preliminary Official Statement, and the final Official Statement; provided, however, that any changes to such documents resulting in substantive amendments to the terms and conditions of the Bonds or such documents shall be subject to the prior approval of the City Council. Section 9.10.: Ordinance a Contract - Amendments. This Ordinance shall constitute a contract with the Registered Owners from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Registered Owners, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Registered Owners, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Registered Owners who own in the aggregate 51 % of the principal amount of the Bond then Outstanding, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Registered Owners of Outstanding Bonds, no such amendment, addition, or rescission shall (i) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof or the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on the Bonds, (ii) give any preference to any Bond over any other Bond, or (iii) reduce the aggregate principal amount of Bonds required to be held by Registered Owners for consent to any such amendment, addition, or rescission. 20 HOV:3009756.3 DULY PASSED AND APPROVED this the 12TH day of April, 2010. ATTEST: ~tUIi~ eI/.tff Ci Secretary APPROVED AS TO FORM AND CON ENT: City Attorney HOU:3009660.1 <-7'~ Mayor S-l SCHEDULE I REFUNDED OBLIGATIONS Original Prindpal Call R(>maining ~Iatlldty Amuunt;. Date/Price Outstanding 3/15/2011 S 125-000 5'14/2010 'f!- 100 $ -0- 315/2012 125,000 514/2010 @ 100 -0- 3/15/2013 125,000 5/14/2010 @ 100 -0- 3/15/2014 125,000 5/14/2010@ 100 -0- 3/15/2015 125,000 5/14/2010 (fj; 100 -0- 3/15/2016 125,000 5/14/2010 @' 100 -0- H5i2017 125,000 5/14/2010 (il' 100 -0- 315/2018 125,000 5/l4!2010 .g 100 -0- 3/152019 125,000 5/14/2010 @ 100 -0- 3/15/2011 S 175,000 5/14/2010 @ 100 $ -0- 3/15/2012 175,000 Si14/2010 @ 100 -0- 3'15/2013 175,000 5'14/2010 @ 100 -0- 3/15/2014 175.000 5/14/2010@ 100 -0- 315/2015 175,000 5/14'2010 @ 100 -0- 3/15/2016 1 hOOO 5/14/2010 (t!; 100 -0- 3'15'2017 175.000 5/14/2010 @ 100 -0- 3/15/2018 175,000 5/14/2010 @ 100 -0- 3/15/2019 175.000 5/14/2010 @ 100 -0- 3/15/2020 175.000 5/14'2010@ 100 -0- 3/15/2011 S 150,000 5'14/2010 'g: 100 $ -0- 3/15/2012 150.000 5/14/2010 @ 100 -0- 3/15/2013 150,000 5/14/2010.@ 100 -0- 3/15/2014 150,000 5/14/2010 @ 100 -0- 3/152015 150,000 5/14/2010 @ 100 -0- 315/2016 150.000 5/14/2010 @ 100 -0- 3/15/2017 150,000 514/2010 @ 100 -0- 3/15/2018 150,000 5/14/201O@ 100 -0- H5/2019 150.000 5/14.'2010 11:' 100 -0- 315/2020 150.000 5/14,2010 @ 100 -0- $4 375 000 Series General Obligation Bonds. Series 1998 General Obligation Bonds, Series 2000 Certificates of Obligation, Series 2000 Total Schedule I - 1 HOU:3009756.3 EXHIBIT A FORM OF BOND [FRONT OF BOND] UNITED STATES OF AMERICA ST ATE OF TEXAS CITY OF LA PORTE, TEXAS, GENERAL OBLIGATION REFUNDING BOND SERIES 20 I 0 NUMBER R_1 REGISTERED PRINCIP AL AMOUNT $ REGISTERED INTEREST RATE2: % DATED DATE: May 1,2010 MATURITY DA TE2: March 15, _ CUSIP2: REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS THE CITY OF LA PORTE, TEXAS, a home rule municipality of the State of Texas (the "City"), for value received, hereby promises to pay to the Registered Owner identified above or its registered assigns, on the maturity date specified above (or on earlier redemption as herein provided), upon presentation and surrender of this Bond at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, or its successor (the "Paying Agent/Registrar"), the principal amount identified above, payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due to the United States of America, and to pay interest thereon at the rate shown above, calculated on a basis of a 360-day year composed of twelve 30-day months, from the later of the Dated Date identified above or the most recent interest payment date to which interest has been paid or duly provided for. 3 Interest on this Bond is 1 Initial Bond shall be numbered T -1. 2 Omitted from initial Bond. 3 The first sentence of the initial Certificate shall read as follows: THE CITY OF LA PORTE, TEXAS, a home rule municipality of the State of Texas (the "City"), for value received, hereby promises to pay to the Registered Owner identified above or its registered assigns, on March 15 of each of the years and in the principal amounts set forth in the following schedule: [Insert information regarding years of maturity, principal amounts and interest rates from Section 3.3 of the Ordinance.] upon presentation and surrender of this Bond at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, or its successor (the "Paying A-I HOU:3009756.3 payable on March 15, 2011, and each March 15 and September 15 thereafter until maturity of this Bond, by check sent by United States mail, first class, postage prepaid, by the Paying Agent/Registrar to the Registered Owner of record as of the close of business on the last business day of the month next preceding the applicable interest payment date, as shown on the registration books kept by the Paying Agent/Registrar. Any accrued interest payable at maturity shall be paid upon presentation and surrender of this Bond at the office of the Paying Agent/Registrar. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HA VE THE SAME FORCE AND EFFECT AS IF SET FORTH AT THIS PLACE. 4 IN WITNESS WHEREOF, the City has caused its corporate seal to be impressed or placed in facsimile hereon and this Bond to be signed by the Mayor, countersigned by the City Secretary by their manual, lithographed or printed facsimile signatures. CITY OF LA PORTE, TEXAS Mayor (SEAL) COUNTERSIGNED: City Secretary * * * [REVERSE OF BOND] THIS BOND IS ONE OF A DULY AUTHORIZED SERIES OF BONDS (the "Bonds") in the aggregate principal amount of $4,295,000 issued pursuant to an ordinance adopted by the City Council of the City on April 12, 2010 (the "Ordinance"), for the purpose of refunding AgentlRegistrar"), the principal amounts identified above (or so much thereof as shall not have been paid or deemed to have been paid upon prior redemption) payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due to the United States of America, and to pay interest thereon at the rate shown above, calculated on a basis of a 360-day year composed of twelve 30-day months, from the later of the Dated Date identified above or the most recent interest payment date to which interest has been paid or duly provided for. 4 This paragraph shall be omitted from the initial Bond and any other Bond for which text does not appear on the back of a printed certificate. A-2 HOD :3009756.3 certain outstanding obligations (the "Refunded Obligations") of the City under and pursuant to the authority of Chapter 1207, Texas Government Code, as amended. Proceeds of the Bonds will also be used to pay the costs of issuing the Bonds and refunding the Refunded Obligations. THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Bond is authenticated by the Paying AgentJRegistrar by due execution of the authentication certificate endorsed hereon. 5 THIS BOND IS NOT SUBJECT to optional redemption prior to maturity. THIS BOND IS TRANSFERABLE only upon presentation and surrender at the principal corporate trust office of the Paying AgentJRegistrar, accompanied by an assignment duly executed by the Registered Owner or its authorized representative, subject to the terms and conditions of the Ordinance. THIS BOND IS EXCHANGEABLE at the principal corporate trust office of the Paying AgentJRegistrar for a Bond or Bonds of the same maturity and interest rate and in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of the Ordinance. THE CITY OR PAYING AGENT/REGISTRAR may require the Registered Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of a Bond. Any fee or charge of the Paying AgentJRegistrar for a transfer or exchange shall be paid by the City. THE REGISTERED OWNER of this Bond by acceptance hereof, acknowledges and agrees to be bound by all the terms and conditions of the Ordinance. IT IS HEREBY DECLARED AND REPRESENTED that this Bond has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, exist and to be done precedent to or in the issuance and delivery of this Bond have been performed, exist and have been done in accordance with law; that the Bonds do not exceed any constitutional or statutory limitation; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied, within the limits prescribed by law, against all taxable property in the City and have been irrevocably pledged for such payment. REFERENCE IS HEREBY MADE TO THE ORDINANCE, a copy of which is filed with the Paying AgentJRegistrar, for the full provisions thereof, to all of which the Registered Owners of the Bonds assent by acceptance of the Bonds. 5 In the initial Certificate, this paragraph shall read: "THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Bond is registered by the Comptroller of Public Accounts of the State of Texas by due execution of the registration certificate endorsed hereon." A-3 HOU:3009756.3 * * * FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE The following form of Comptroller's Registration Certificate shall be attached or affixed to each of the Bonds initially delivered: OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS THE STATE OF TEXAS ~ ~ ~ REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL OF OFFICE this (SEAL) Comptroller of Public Accounts of the State of Texas * * * FORM OF PAYING AGENTIREGISTRAR'S AUTHENTICATION CERTIFICATE The following form of authentication certificate shall be printed on the face of each of the Bonds other than those initially delivered: AUTHENTICATION CERTIFICATE This Bond is one of the Bonds described in and delivered pursuant to the within- mentioned Ordinance; and, except for the Bonds initially delivered, this Bond has been issued in exchange for or replacement of a Bond, Bonds, or a portion of a Bond or Bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. as Paying Agent/Registrar By: A-4 HOU:3009756.3 Authorized Signature: Date of Authentication: * * * FORM OF ASSIGNMENT The following form of assignment shall be printed on the back of each of the Bonds: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto (Please print or type name, address and zip code of Transferee) (Please insert Social Security or Taxpayer Identification Number of Transferee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature Guaranteed: Registered Owner NOTICE: Signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature above must correspond to the name of the registered owner as shown on the face of this Bond in every particular, without any alteration, enlargement or change whatsoever. * * * * A-5 HOD :3009756.3 HOU:3009756.3 EXHIBIT B FORM OF PAYING AGENTIREGISTRAR AGREEMENT EXHIBIT C WINNING BID HOV:3009756.3 EXHIBIT D OFFICIAL NOTICE OF SALE -- HOU:3009756.3 EXHIBIT E PRELIMINARY OFFICIAL STATEMENT HOU:3009756.3 ORDINANCE NO. 3233 AN ORDINANCE CONSENTING TO A PROPOSED BOND RESOLUTION AND CONTINUING DISCLOSURE AGREEMENT TO BE ADOPTED BY THE LA PORTE AREA WATER AUTHORITY WHEREAS, the Board of Directors of the La Porte Area Water Authority (the "Authority") has informed the City Council of the City of La Porte, Texas (the "City") that the Authority desires to issue and sell its Contract Revenue Refunding Bonds, Series 2010, in the aggregate principal amount not to exceed $4,500,000 (the "Bonds") in order to refund and defease its Contract Revenue Refunding Bonds, Series 1999, for the purpose of achieving debt service savings; and WHEREAS, the City has entered into a Water Supply Contract, dated as of November 23, 1987, as amended July 24, 2000 (the "Contract") with the Authority which allows the City to purchase treated water from the Authority; and WHEREAS, the Authority has delivered to the City pursuant to Section 3.02 of the Contract the proposed bond resolution attached hereto as Exhibit A (the "Bond Resolution") and a schedule containing an estimate of the amounts described in such Section 3.02, attached hereto as Exhibit B; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MORGAN'S POINT, TEXAS: Section 1. That the City Council of the City hereby consents, pursuant to Section 3.03 of the contract, to the adoption by the Authority of the Bond Resolution and the execution by the City of the Continuing Disclosure Agreement substantially in the form attached hereto as Exhibit C. Section 2. That all filing, notice or time requirements or other conditions precedent to the adoption of this Ordinance and the approval of the Bond Resolution are hereby waived and the adoption of this Ordinance shall be all the action necessary for the City to consent and approve the issuance of the Bonds by the Authority. Section 3. That if any section, sentence, phrase, clause or any part of any section, sentence, phrase or clause of this Ordinance shall for any reason be held invalid, such invalidity shall not affect the remaining portions of the Ordinance, and it is hereby declared to be the intention of the 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 4. That the City Council hereby officially finds, determines, recites and declares that sufficient written notice of the date, hour, place and subject matter of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for HOU:3004205.\ the time required by law preceding this meeting, as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, 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. That this Ordinance shall take effect and be in full force immediately upon and after its adoption. __ PASSED AND APPROVED THIS /J day ofdfl ,2010. CITY OF LA PORTE, TEXAS ~~ a or I ATTEST: By: ~~ddl City Secretary HOU:3004205.1 EXHIBIT A BOND RESOLUTION HOU:3004205.1 EXHIBIT B ESTIMATE OF AMOUNTS PAYABLE HOU:3004205.1 >- - "i: c ,g e .... tn ii ~_::l <t to) ...~~ 2wll III C) E := c: ::J 1Il'- Z Ql"Ol ... c: C <t.a:g Ql Ql ::J t::O:::Gi o D:: Q. ~ III nl ...J .: .~ Qj a: , : <Il ; 1" Iii! 5 i~m gjl8r ~ 'tl let ~ (1)/ I .~ ~i I nl ml I (I).g1 _ "I en!! >i~i.s G)rOiC D::lm!- ~1''Ui1 .b !I glsl Oic UjI~I- ::J'GlI!!' ii:1 t:i.l:. .::J: U /oi'E jl~ GlI' , U : --I ! 1::1~! GI!-ci:;:: ~15'~ .Q,'....j"tl GI'GI C cia:: 0 "'I' C 1m ::: 0, GlI ' ..Ii i islB 10:'- I~!~ C '(I) ijl~ ! I !Ol 1:510 I~i~ I~I ~~ -8i~ C ....,!!! a::,c -1- <Il,> 0:.. 11.1(1) I I~.~ loSl1:: I '=IJJ ! (IJ.... I,' 01.Q '11. GI ! IC C") M C\J OJ Mio v 0 <0 co y-:O "I::tO N l.{) 0 ~ (O!~ .q- N u-J ~- c0 N ~-i(jJ~ ll'i,-- N N N N N!N N ~ g g g gig g g ~ 0_ or: "r"_ 'r"_1 "l ~ ..q_ o ~ C"") (]) -.:tiCO ..- to o T""""""""" T"""iO T'"" N ,..... r-- 1"- "" r-I,...... ~ C"") u _ I -.::t 0 0 0 oio 0 0 "" 0 0 0 DiD 0 0 M 0 __ _ 'r"IM l() -.::t g U;- ~ t ~-! ~ ~. to or- or-..- ' 000 OiO 0 0 0000,000 0000:000 ci lli lli llillli lli ci ~ ~ ;D ~j~ ~ ~ ! .,.... ("') ('I') co Mia "<t 0 co T""" (0 co T"'"iO "I:t 0 ___ ~ -:. ~ ",:/lc,O_ ~ ~ OlOtO..-l/)..q(Q,...... ~ ~ ~ r! ~I~ ~ ~ , i i ~ ~ ~ ~ ~Ig ~ 8 ~ IJ"') -- N """'1<0 (J) <0 o Lei to ~ l()IJ...t cO ,..: ","MM","MMMN ""',......"",,",r-r--..,.....,.....C"') I I I a..-NM-..::tLOto....... ooo~oooo NNNNNNNN '" "" .., a) co .... ~ .... 0; > 0> "" .0 .... 0> "" .... 'Ii Q "" or) ~ @ Q .... Q ~ .... ~ Q l2' :c: ~ Q ~ '7 .... .., co .... ~ .. III )( .! ~. .9 III :::. o :c: ~ ... .... Q co ~ t o 0.. ~ (/) -0 ~2 ~o M ~ i?; U og.;., '0 (j) L' 2 :ll .~ ~~Q) 010 ~ cO", "u; 0 "'0 .g ~.~ 1?~~ -~Q) Qi ~ ~ ~~~ "0(52 Q) - C :; 01'- "0 .~ ~ ~ ~ 2 ~ u 8 !lrom ffi~o ~ '* ~ mc", 0.."'0 --=""" ~-g~ ~.2Q) ~ .6~ <;::-ou ~ ~ .f; ~-6 ~ g ~ .~ E Q) ~ :J (ij ..... e ~ ~ Uc>' tI).S: 1i) E ro .: I-cnLL tli II:: Q ~ ~ II:: 0'1 0'1 Q -' o 0'1 0> Q -' o U. III II:: Q ~ II:: ~ ~ -' ~ GI ~ III ::!E Q Q Q ..,' .., Q 'Ii ~ '" Q Q o:i' "" <I) ~. ~ .l!! .~ o o IX! II:: ~ "0 ~ III @- Q.. .... a, Cl nl 11. "- "- '" o:i' ... "" or) ~ ..!!! .l!! ~ ~~~ EXHIBIT C CONTINUING DISCLOSURE UNDERTAKING HOU:3004205.1 CONTINUING DISCLOSURE AGREEMENT La Porte Area Water Authority Contract Revenue Refunding Bonds Series 2010 THIS CONTINUING DISCLOSURE AGREEMENT (this "Disclosure Agreement"), dated as of May 13, 2010 (this "Disclosure Agreement"), is executed and delivered by the City of La Porte, Texas (the "City"), and the La Porte Area Water Authority (the "Authority") in connection with the issuance by the Authority of its Contract Revenue Refunding Bonds, Series 2010. The City, the Dissemination Agent and the Trustee covenant and agree as follows: Section 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the City and the Authority for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with, and constitutes the written undertaking of the City for the benefit of the Bondholders required by, Section (b)(5)(i) of Securities and Exchange Commission Rule l5c2- 12 under the Securities Exchange Act of 1934, as amended (17 C.F.R. 9 240.15c2-12) (the "Rule"). The City, as an "obligated person" within the meaning of the Rule, undertakes to provide the following information as provided in this Disclosure Agreement: (1) Annual Financial Information. Section 2. Definitions. In addition to the definitions set forth in the Trust Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Financial Information" means, in the case of the City, the financial information or operating data, provided at least annually, of the type included in Exhibit A hereto, which Annual Financial Infonnation may, but is not required to, be audited. Annual Financial Information shall be prepared in accordance with Generally Accepted Accounting Principals. "Beneficial Owners" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories. "Holders" means either the registered owners of the Bonds, or, if the Bonds are registered in the name of The Depository Trust Company or another recognized depository, any applicable participant in its depository system. "Material Event" means any of the following events with respect to the Bonds, if material: (i) Principal and interest payment delinquencies; HOU:3004208.1 (ii) Non-payment related Events of Default under and as defined in the Trust Indenture; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (vii) Modifications to rights of Bondholders; (viii) Bond calls (other than mandatory sinking fund redemptions); (ix) Defeasances; (x) Release, substitution, or sale of property securing repayment of the Bonds; and (xi) Rating changes. "MSRB" means the Municipal Securities Rulemaking Board. "Participating Underwriters" means the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Report Date" has the meaning set forth in Section 3(a) hereof. Section 3. Provision of Annual Reports. (a) While any Bonds are outstanding, the City shall provide the Annual Financial Information on or before December 31 of each year (the "Report Date"), beginning on or before December 31,2010, to the MSRB. In addition, not later than 15 Business Days prior to said date, the City shall provide the Annual Financial Information to the Authority. In each case, the Annual Financial Information may be submitted as a single document or as a set of documents, and all or any part of such Annual Financial Information may be provided by specific cross-reference to other documents previously provided to the MSRB or filed with the Securities and Exchange Commission. The City shall also provide notice to the MSRB of any failure to provide Annual Financial Information by the applicable Report Date. 1 HOU:3004208.1 Section 4. Reporting of Material Events. The City and the Authority hereby acknowledge and agree that any reporting of Material Events in connection with the Bonds as required by the Rule will be undertaken by the Authority by separate agreement. Section 5. Termination of.Reporting Obligation. The City's obligations under this Disclosure Agreement shall automatically terminate once the Bonds are no longer outstanding. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the City and the Authority may amend this Disclosure Agreement and any provision of this Disclosure Agreement may be waived by the parties hereto, if such amendment or waiver is supported by an opinion of counsel expert in federal securities laws, acceptable to the City and the Authority, to the effect that such amendment or waiver would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been effective on the date hereofbut taking into account any subsequent change in or official interpretation of the Rule, provided that the Authority shall have provided notice of such delivery and of the amendment to the MSRB. Any such amendment shall satisfy, unless otherwise permitted by the Rule, the following conditions: (i) The amendment may only be made in connection with a change in circumstances that arises from, a change in legal requirements, change in law or change in the identity, nature or status of the obligated person or type of business conducted; (ii) This Disclosure Agreement, as amended, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (iii) The amendment does not materially impair the interests of Beneficial Owners and Holders of any of the Bonds, as determined either by parties unaffiliated with the City and the Authority (such as counsel expert in federal securities laws), or by approving vote of Bondholders pursuant to the terms of the Bond Resolution at the time of the amendment. The initial Annual Financial Information after the amendment shall explain, in narrative form, the reasons for the amendment and the effect of the change, if any, in the type of operating data or financial information being provided. Section 7. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Financial Information, in addition to that which is required by this Disclosure Agreement. If the City chooses to include any information in any Annual Financial Infonnation in addition to that which is specifically required by this Disclosure Agreement, the City shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Financial Information. 2 HOU3004208.1 Section 8. Default. In the event of a failure of the City to comply with any provision of this Disclosure Agreement, the Authority may and, at the written direction of the Participating Underwriter or the Holders of at least 25% in aggregate principal amount of Outstanding Bonds, shall, or any Beneficial Owner or Holder of any of the Bonds may, seek mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Agreement; provided that the City shall be liable for monetary damages or any other monetary penalty or payment for breach of any of its obligations under this Section. The sole remedy under this Disclosure Agreement in the event of any failure of the City to comply with this Disclosure Agreement shall be an action to compel performance. Section 9. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the City, Authority, the Participating Underwriters and the Beneficial Owners and Holders of any Bonds and shall create no rights in any other person or entity. Section 10. Interpretation. It being the intention of the City and the Authority that there be full and complete compliance with the Rule, this Disclosure Agreement shall be construed in accordance with the written guidance and no-action letters published from time to time by the Securities and Exchange Commission and its staff with respect to the Rule. Section 11. Governing Law. This Disclosure Agreement shall be governed by the laws of the State of Texas. Section 12. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the City and the Authority have each caused their duly authorized officers to execute this Disclosure Agreement as of the day and year first written above. CITY OF LAPORTE, TEXAS By: Its: Mayor LA PORTE AREA WATER AUTHORITY By: Its: President 3 HOU:3004208\ EXHIBIT A ANNUAL DISCLOSURE REPORT La Porte Area Water Authority Contract Revenue Refunding Bonds Series 2010 Report For Period Ending TOP TEN WATER CUSTOMERS The following table sets forth the top ten water customers of the City for fiscal year ended , as derived from the City's [un ] audited financial statements. Customer Type of Business 20_ Consumption in Gallons 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. HOU3004208 J 8 - -----.-..'"" REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 12. 2010 Source of Funds: N/A Requested By: John Joerns Account Number: N/A Department: Planninl?: Amount Budgeted: N/A Report: --K-Resolution: _Ordinance:_ Amount Requested: N/A Exhibits: . Policy Statement (Updated) . Application for Water/Sewer Service (New) . Flowchart (New) . Water Service Agreement (Updated) . Sanitary Sewer Agreement (Updated) . Approval for Utility Account (New) Budgeted Item: _YES ...x.....NO SUMMARY & RECOMMENDATION The City will be sending out renewal requests to a number of companies that have expired water/sewer service agreements. The last formal review of the policy and agreements with City Council took place in 1999. The material presented in your agenda package has very few changes. The only significant change is the removal of the reference to "other processes" in the policy statement and "industrial processes" in the standard contracts. These terms had become a source of confusion with staff and applicants as the basic policy intent (with one significant exception) was to provide water/sewer for basic human domestic needs. The one exception is Dana Transport which requested industrial waste treatment and a maximum daily demand of 30,000 gallons per day. City Council approved the request and asked staff to prepare such an agreement with Dana. Other key features of the policy remain the same: . Demand of 50 gallons per day per company employee for domestic needs . Other uses require specific Council approval . Administrative fees of $1 OO/employee with a minimum of $5,000 and a maximum of $15,000 . Company pays 150% of current "in-city" rate and 200% when the contracted amount is exceeded . Approval by City Council . All plumbing code and other ordinances pertaining to furnishing of water/sewer shall apply · No outlay of City funds other than administration of contracts and policies · Company is responsible for relocation costs if lines installed in rights-of-way must be relocated · Company is required to maintain current Industrial District Agreement with City · New development requires HCFCD approval of storm water plan for site · Company must execute a Utility Extension Agreement with City if extensions are required · Company may be required to pay a pro-rata reimbursement for water/sewer installed by others · Where required, a meter bypass and reduced pressure zone backflow preventer will be installed Other changes include the addition of forms to provide a better description of the process for the Company. A key feature is changes to the process allowing the Company to secure approval from City Council early in the process prior to submitting full fees, and procuring professional services for its site design and development plans. For companies requesting only domestic water/sewer, the proposal is to renew the agreements through the year 2019 to coincide with the expiration of the Company's current IDA term. Companies with "special requests", such as the Dana agreement, will be returned to Council for individual consideration. Action Required bv Council: rove an updated policy, application and standard Water and Sanitary Sewer Service Agreements ompanies outside the City with Industrial District Agreements. f Ron Bottoms, City Manager Date April 12, 2010 Page 1 of 4 POLICY MANUAL Date: April 12, 2010 Approved:J.Joerns Subject: Water and/or Sanitary Sewer Service outside city limits (within ETJ) for companies with an Industrial District Agreement Responsible Agency: Planning Department Policy Objective: To provide policy guidelines and establish procedures for water and/or sanitary sewer requests by Companies located outside city limits (within ETJ) with an Industrial District Agreement Authority: Review/Approval by La Porte City Council Policy: "Policy for water and/or sanitary sewer service outside city limits (within ETJ) for companies with an Industrial District Agreement" Exhibits: 1. Policy Statement (Updated - 3 pages) 2. Application for Industrial District Water/Sewer Service (New Document - 1 page) 3. Flowchart (New Document -1 page) 4. Standard Water Service Agreement (Updated - 6 pages) 5. Standard Sanitary Sewer Service Agreement (Updated - 6 pages) 6. Approval for Utility Account (New Document -1 page) Summary: To provide policy guidelines for City water and/or sanitary sewer service outside city limits (within ETJ) for companies with an Industrial District Agreement. Comments: Revisions: April 12, 2010 Page 2 of 4 CITY OF LA PORTE POLICY FOR WATER and/or SANITARY SEWER SERVICE TO PROPERTIES WITHIN INDUSTRIAL DISTRICTS Long-range planning considerations by the City of La Porte for its water distribution and sanitary sewer collection systems did not include the needs of areas located outside of its city limits. Additionally, the City is under no obligation to provide any utility service(s) to these areas. The City has developed the following policy regarding limited and restricted utility service(s) to industrial district companies with Industrial District Agreements on a case-by-case basis. I. City Consideration for Providina Utility Service(s) requires the Company to submit the following documentation for review by City Staff and approval by City Council. · Completed Application for Industrial District Utility Service (see Exhibit "A", attached) · Sketch or Site Plan illustrating the following: · Adherence to Rules & Regulations defined in Exhibit "C" of Company's Industrial District Agreement with the City . Total Acreage of Company's property · Existing and proposed site improvements illustrating limits of utility service(s) · On-Site and Off-Site Water and Sanitary Sewer Service Plan · HCFCD-approved Stormwater Management Plan (subject to approval by City) Note I (a): In the case of multi-lot developments, each individual Company will be required to execute individual agreements with the City as listed in Section II of this policy. II. City Conditions for Providina Utility Service(s) shall be subject to: 1. Company's execution of an Industrial District Agreement with the City 2. Initial review by City Staff of Company's Application & Supporting Documentation 3. Review and consideration by City Council on a case-by-case basis 4. Company's execution of a Water Service Agreement and/or Sanitary Sewer Service Agreement with the City + payment of administrative fee per each agreement 5. Company's execution of a Utility Extension Agreement with the City - in the event City water and/or sanitary sewer mains not extend to and through Company's frontage Note II (a): Industrial District properties are limited to one (1) Water Service Agreement and one (1) Sanitary Sewer Service Agreement per property under a current Industrial District Agreement. Note II (b): Where applicable, a Company executing a Water and/or Sanitary Sewer Service Agreement with the City shall pay a pro-rata reimbursement fee for previous installation(s) of utility main(s) extended and funded by other parties under a previously-executed Utility Extension Agreement. The City will collect a pro- rata reimbursement fee on behalf of that party based on Company's frontage along subject utility main(s). Note II (c): An Administrative fee of $100 per site employee (as defined in Sec. III) per each agreement. (Minimum Administrative Fee = $5,000; Maximum Administrative Fee = $15,000 per each agreement) April 12, 2010 Page 3 of 4 III. City Allocation of Water and Sanitary Sewer Service(s) through the term of Company's agreement is established by use of the following formulas: · WATER SERVICE: (Total Site Employees x 50 gallons per day) x 30.5 days = APPROVED MONTHLY WATER VOLUME · SANITARY SEWER SERVICE: APPROVED MONTHLY WATER VOLUME x 0.85 = APPROVED MONTHLY SANITARY SEWER VOLUME Note III (a): Site employees = All full-time employees (including full-time regular and full-time contract employees) Note III (a): Other requested uses are reviewed by staff and approved by Council on a case-by-case basis IV. City BillinQ Rates for Industrial District Utility Service(s): · The industrial district utility customer shall pay 150% of the prevailing water and sanitary sewer rate in effect for utility customers within the corporate limits of the City. Water and/or sanitary sewer usage in excess of the approved monthly amount defined in Company's Water and/or Sanitary Sewer Service Agreement will be billed at 200% of the prevailing rate in effect for utility customers within the corporate limits of the City. V. Reauirements and/or Restrictions of City Utility Service(s): · City water and sewer service to an industrial district property shall be restricted to domestic purposes only. Any utilization of City utility service for any other purpose(s) will require additional review by staff and approval by Council. Additional restrictions may be added. · Requests of City water for irrigation purposes will be reviewed by Staff and approved by Council on a case-by-case basis. Water utilized for landscaping purposes must be utilized as part of Company's Approved Monthly Water Volume. · Utility taps are limited to one (1) water and/or one (1) sanitary sewer tap per industrial district property. · The City retains the right to inspect any and all work and materials related to furnishing City water and/or sanitary sewer to Company's site. Company shall ensure access to City's personnel for compliance with the terms of this policy and the approved agreement(s). · All related plumbing and utility work shall be properly permitted and shall meet all State and City code requirements. The City retains the right to inspect any and all work and materials related to furnishing City water to the Company's site. · City may require installation of fire hydrants on City water main(s) to improve fire-fighting abilities in the area · A Reduced Pressure Zone (RPZ) backflow preventer shall be installed by Company to protect the City from any possible cross-connections. · When required by City, a meter bypass shall be installed. April 12, 2010 Page 4 of 4 VI. Extensions of City Utility Main(s) - in the event adequate utilities are not available to an industrial district property, utility service(s) will not be recommended unless special provisions are made and approved for the extension of water and/or sanitary sewer main(s) of proper size and capacity to meet the present and projected demands of the area. All proposed utility extensions shall require the Company to coordinate with the City's Engineering Division to discuss the project and the required extension(s). Upon review and approval by Council, the Company will be required to: . Obtain City approval of plans for water and/or sanitary sewer extensions. . Execute a Utility Extension Agreement with the City. Note VI (a): Company is responsible tor all costs ot utility main extension(s). Limited reimbursement to Company may be possible under the terms ot the Company's Utility Extension Agreement with the City. Note VI (b): Company is responsible tor securing easement and/or right(s)-ot-way tor utility extension(s). The City encourages extensions ot its utility mains to be placed within utility easement or easements located upon private property adjacent to public right-ot-way. VII. Additional ReQuirements of City Utility Service - The City Council may include additional requirements and/or restrictions to Company's Water and/or Sanitary Sewer Service Agreement(s) as it deems necessary. These requirements will be listed in Exhibit "A" of the Company's Agreement(s). To promote specific objectives, goals or policies of the City, the City Council may require: · specific setbacks and/or lot coverage requirements · enhanced landscaping along major roadways (Le. State Highway 225, State Highway 146, Fairmont Parkway, Bay Area Boulevard, Underwood Rd., etc.) · pedestrian sidewalks, fencing and/or screening · other requirements on a case-by-case basis VIII. Exceptions to this policy: · Prior unexpired contracts and/or commitments made by the City · City Council has the right to review, modify or enter into other agreements as it deems necessary. CITY OF LA PORTE PLANNING DEPARTMENT 604 West Fairmon! Parkway, La Porte, TX 77571 Phone: 281.471.5020, Fax: 281.470.5005 www.laportetx.gov - City Use Only- Rec'd by: Date: Date of initial Review Meeting: Date ofInternal Review Meeting: Request Meets Policy Guidelines?: Date of Notification to Company: APPLICATION for WATER I SEWER SERVICE to COMPANIES WITH AN INDUSTRIAL DISTRICT AGREEMENT (IDA) Y or N Note: Submittal of partial or incomplete information may delay processing of your application 2.) *SITE TENANT (if other than "Company"): Company Name: Phone # Fax#: Address: 1.) COMPANY NAME (per Applicant's IDA w/ City): Name: Phone #: Fax#: E-Mail: Company Address: Contact Name: 3.) PROPERTY DATA (If available, include any survey, plat. site plan, map or sketch of the subiect site with this form): .Company's Industrial District Agreement No.: 2007 -IDA - .Site Address: Site HCAD ID(s): ___ - ___ - ___ - ____; ___ - ___ - ___ - ____; - - --- --- --- - - --- --- ---- Total Site Acreage (Per Exhibit "A" of Company's IDA): Acres 4.) SITE FACILITY INFORMATION (If available, include any site plan or sketch of the subiect facility with this form): o New Construction Describe Project: o New Tenant Requesting Additional Water and/or Sanitary Sewer Allocation (Specify reason(s) for additional allocation request: *Full-time Regular + Full-time Contract Employees who will occupy this facility: "Current Amount of Water Allocated to Company by existing Water Service Agreement: ..Current Amount of Sewer Allocated to Company by existing Sewer Service Agreement: Total Full-Time Employees gallons per month gallons per month 5.) WATER SERVICE IS REQUESTED to COMPANY'S SITE FOR THE FOllOWING PURPOSE(S): o Domestic Uses (Le. Drinking, Flushing, Etc.) o Other (describe): 6.) SANITARY SEWER SERVICE IS REQUESTED to COMPANY'S SITE FOR THE FOllOWING PURPOSE(S): o Domestic Uses (Le. Wastewater from domestic uses) o Other (describe): · An Administrative Fee of $100 per employee is assessed for each agreement (Min Fee = $5.000; Max Fee = $15,000) ..If Applicable .0. (') g z Q r ~ -l <5 z (') (') ~ ~ "tl ~ ~ -l -< ~ ~ -l <5 z o (') :3: m (') ^ CD ~ -n o ;:0 g ~ "tl j;; -l <5 z ." r- ~ o ~ ~ -t ." o " Z c c: ~ 2! ~ c ~ 2! ~ c: -t F ~ (J) m ~ (; m ." ~ g o ~ o ." ~ "12 o a m 00 ~ ~o o....o~3: (/)0::0_)>"'0 ~5~0~ ::0 c:: )> ~o ~ ~::O~::O(/) O(/)r- c:: "TI"'O~~~ ~~~~~ (/) rn :-I (/) I STATE OF TEXAS ~ COUNTY OF HARRIS ~ CITY OF LA PORTE WATER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and hereinafter called "COMPANY". 1. CaMP ANY is the owner of certain real property which is situated within the CITY'S Battleground or Bayport Industrial District and not within the corporate limits of the CITY. CITY and CaMP ANY are parties to a current Industrial District Agreement. ll. CaMP ANY is desirous of purchasing potable water from CITY for usual human domestic uses. Previous planning considerations for the long-range potable water supply of CITY did not include the needs of properties located outside the corporate limits of CITY. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited water service. CITY agrees, however, to provide limited potable water service to CaMP ANY. For and in consideration of furnishing domestic potable water by CITY, the parties hereto agree as follows, to-wit: Ill. CaMP ANY has made certain representations to CITY as to the number of employees that will be located at the COMPANY'S property as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. Upon review of these representations, the City has determined the following: Number of Full-Time Employees on site + Number of Full-Time Contract Employees on site = Total On-Site Full-Time Employees Potable Water Approved for Domestic Use (Total on-site Employees times 50 gpd per employee) Total Amount of Potable Water Approved for CaMP ANY (Average Daily Volume, gpd) 2 IV. CITY has determined that adequate resources are available to CITY to furnish potable water to COMPANY based on the following terms and conditions, to-wit: (A) COMPANY shall pay to CITY a one-time administrative fee of $ (B) The total amount of potable water approved to COMPANY is established at (_) gallons per day. This number is based on an average of fifty (50) gallons per employee per day as established by CITY. (C) The average monthly volume of ( ) gallons is established by multiplying the average daily volume by a factor of 30.5, which shall be used to facilitate CITY'S utility service billings. (D) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly volume of (_) gallons. Repeated consumption greater than the established average monthly volume may result in termination of service. (E) COMPANY shall pay the standard water tap/meter fee based on CITY'S current tap/meter fee schedule. Upon final approval of COMPANY'S on-site and/or off-site utility construction by CITY, COMPANY shall pay the CITY'S standard water deposit fee through CITY'S Utility Billing Division prior to receiving water service from CITY. (F) The cost of water up to the average monthly volume of (_) gallons shall be billed at one hundred fifty percent (150%) ofthe CITY'S rate as established from time to time for commercial customers inside its corporate limits. (G) The cost of water for amounts used in excess of the established average monthly volume shall be billed at two hundred percent (200%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (H) COMPANY shall submit a preliminary site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. COMPANY'S development may be subject to certain additional requirements as described in Exhibit A. These requirements shall be shown on the final site plan and approved by City. (1) COMPANY'S site design and site development will, in certain cases, be subject to specific "Rules and Regulations" as defined in Exhibit "C" of COMPANY'S Industrial District Agreement with CITY. (J) All plumbing installed by COMPANY connected to the domestic water line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. (K) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. 3 (L) COMPANY'S potable water supply system will be segregated from any existing and future fIre protection system. (M) The total cost for the engineering design and construction of any potable water main, service line, back flow preventer, meter or other required appurtenances will be the responsibility of COMPANY. (N)COMPANY agrees to be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. (0) There shall be no resale of water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (P) CITY'S personnel shall have the right of prior review and approval of COMPANY'S plans and specifIcations for the plumbing system(s). CITY shall have the right to inspect any and all work related to the furnishing of potable water to COMPANY. (Q)CITY shall have the right to interrupt or temporarily suspend said water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of the citizens of La Porte. (R) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (S) CITY does not guarantee its water system to provide specifIc water pressure and/or water volume requirements of COMPANY. V. All expenses of the installation of the meter; service lines from the main to the meter; and from the meter to COMPANY'S facilities, shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own the meter. VI. In the event a State or Harris County license, permit, or permission to install the water main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. Vll. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water facilities, reading its water meter(s) and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notifY COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. 4 VIll. CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (10) calendar days from date of written notice by CITY may result in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water supply is threatened. IX. Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare for transition to another water supply. If the transition is not complete within said six- month period, CITY shall have the right to terminate water service at its sole discretion. x. In the event of any conflict between the terms and provisions of this Water Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Water Service Agreement shall control, to the extent of such conflict. The term of this Agreement shall expire on plus any renewals and extensions thereof. However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right of termination. ENTERED INTO effective the day of Signature of Company's Authorized Representative Printed Name: Company Representative's Title: Company's Address: 5 ATTEST: CITY OF LA PORTE M ertha A. Gi II eit City Seo"aery Berry BEBSJ ef Mayor APPROVED: By: Clerk T. As<ins Ci ty A ttornef Ron Bottoms City Ma1CldEf" 6 EXHIBIT "A" to Water Service Agreement The Water Service Agreement is hereby amended and supplemented to include the following additional requirements agreed to by CITY and COMPANY. These requirements represent contractual obligations of COMPANY to receive water service from CITY per the terms of the Water Service Agreement and this addendum. COMPANY shall fulfill each of the following additional requirements as set forth below. Additional Reauirements of COMPANY: 1. Usage of CITY water by COMPANY for purposes other than human consumption (domestic purposes) shall be limited to the following: 2. COMPANY shall pay to CITY $ as a pro-rata reimbursement for construction of the water main serving its property by other parties. CITY APPROVAL: Initial for A COMP ANY APPROVAL: 1 STATE OF TEXAS ~ COUNTY OF HARRIS ~ CITY OF LA PORTE SANITARY SEWER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY'" and hereinafter called "COMPANY" . 1. COMPANY is the COMPANY of certain real property, which is situated in CITY'S Battleground or Bayport Industrial District and not within the corporate limits of the CITY. CITY and COMPANY are parties to a current Industrial District Agreement. II. COMPANY is desirous of purchasing sanitary sewer service from CITY for usual human domestic uses. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited sanitary sewer service. CITY agrees, however, to provide limited sanitary sewer service to COMPANY. For and in consideration of furnishing sanitary sewer service by CITY, the parties hereto agree as follows, to-wit: III. COMPANY has made certain representations to CITY as to the number of employees, as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. Upon review of these representations, the City has determined the following. Number of Employees on-site Number of Contract Employees Total on-site Employees Sanitary Sewer Desired for Domestic Use (Total on-site times 50 gpd per employee) Total Amount of Sanitary Sewer Approved For COMPANY (Average Daily Volume, gpd) 2 IV. CITY has determined that adequate facilities are available to allow CITY to furnish sanitary sewer to COMPANY based on the following terms and conditions, to-wit: (A). COMPANY shall pay to CITY a one-time administrative connection charge of $ (B). COMPANY shall pay the standard sewer tap fee based on CITY'S current sewer tap fee schedule. Upon fInal approval of COMPANY'S on-site and/or off-site utility construction by CITY, COMPANY shall pay the CITY'S standard sewer deposit fee through CITY'S Utility Billing Division prior to receiving sewer service from CITY. (C). The average daily volume is established at U gallons per day. This number is based on an average of fIfty (50) gallons per employee per day established by CITY. (D). The average montWy volume is calculated to be eighty-fIve percent (85%) of the average daily volume multiplied by a factor of 30.5, which shall be used to facilitate service billings. (E). The cost of sanitary sewer service up to the average montWy volume of U gallons shall be one hundred fIfty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (F). The cost of sanitary sewer service for amounts in excess of the established average montWy volume shall be two hundred percent (200%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (G). Nothing contained in this Agreement shall obligate CITY to furnish more than the average montWy volume of ~. Repeated sanitary sewer delivery greater than the established average montWy volume may result in termination of service. (H). COMPANY agrees that during periods when the CITY'S collection system is surcharged, the CITY may require the suspension of use of the sanitary sewer system for periods not to exceed thirty-six hours. (I). CITY shall have the right to interrupt or temporarily suspend said sanitary sewer service to COMPANY if an emergency arises and there is not an adequate sewer collection or treatment capacity to meet the needs of the citizens of La Porte. (1). COMPANY shall fIle application with CITY for an Industrial Waste Permit and hereby agrees to be bound by CITY'S Industrial Waste Ordinance (Chapter 74, Article II of the Code of Ordinances) and any subsequent amendments or revisions. (K). Owner shall install a sanitary sewer sampling well in accordance with CITY'S standards to ensure no sewer waste, other than domestic waste enters its sanitary sewer system. (L). The total cost for the engineering design and construction of any sanitary sewer main, service line, lift station, meter or other required appurtenances will be the responsibility of COMPANY. 3 (M). CaMP ANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of sanitary sewer service to customers within the corporate limits of CITY. (N). COMPANY shall install a sanitary sewer sampling well in accordance with CITY's standards. (0). All plumbing installed by COMPANY connected to the sanitary sewer line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and code enforcement personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY plumbing inspectors shall have the right to inspect any and all work related to the furnishing of sanitary sewer service to COMPANY. (P). There shall be no resale of the sanitary sewer service provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (Q). COMPANY shall submit a certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. COMPANY'S development project may be subject to certain additional requirements as described in Exhibit "A", attached. These requirements shall be shown on the site plan and approved by City. V. All expenses of the installation of service lines from the main to the COMPANY'S facilities shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities. VI. In the event a State or Harris County license, permit, or permission to install the sanitary sewer main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S sanitary sewer facilities, and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notify COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. Vill. CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (to) days may result in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public sanitary sewer system is threatened. 4 IX. Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare for transition to another sanitary sewer service provider. If the transition is not complete within said six-month period, CITY shall have the right to terminate sanitary sewer service at its sole discretion. x. In the event of any conflict between the terms and provisions of this Sanitary Sewer Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Sanitary Sewer Service Agreement shall control, to the extent of such conflict. The term of this Agreement shall terminate on , _' However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right of termination. ENTERED INTO effective the day of Signature of Company's Authorized Representative Printed Name: Company Representative's Title: Company's Address: 5 A TTEsr: CITY OF LA PORTE M ertha A. Gi II at City Socraery Berry BeE ey Mayor A FflROV ED : By: Knox W. Askins City Attorney Ron Bottoms City ManaJ6" 6 EXHIBIT "A" to Water Service Agreement The Sanitary Service Agreement is hereby amended and supplemented to include the following additional requirements agreed to by CITY and COMPANY. These requirements represent contractual obligations of COMPANY to receive sewer service from CITY per the terms of the Sanitary Service Agreement and this addendum. COMPANY shall fulfill each of the following additional requirements as set forth below. Additional ReQuirements of COMPANY: 1. Usage of CITY sewer by COMPANY for purposes other than human consumption (domestic purposes) shall be limited to the following: 2. COMPANY shall pay to CITY $ as a pro-rata reimbursement for construction of the sanitary sewer main serving its property by other parties. Initial for ADDroval: CITY APPROVAL: COMPANY APPROVAL: CITY OF LA PORTE APPROVAL FOR INDUSTRIAL DISTRICT UTILITY ACCOUNT (For City Staff Use Only) Approved for U. B.: Date: COMPANY INFORMATION: Company Name (per agreements): Site Address: Site HCAD ID: IDA No.: 2007 -IDA- H.T.E. Location ID #: WATER SERVICE: Ordinance Approving Agreement(s): Administrative Fee: $ Approved Water Allotment (gallons per month): Approved Water Use(s): Special Conditions: Misc. Notes: Date of Approval: Receipt #: Date of Payment: CITY APPROVALS FOR WATER SERVICE: On-Site Plumbing Inspected/Approved by: Off-Site Utility Extension Inspected/Approved by: Backflow Prevention Device Inspected/Approved by: Additional Requirements ofWSA (Re: Exhibit "N): 1. 2. 3. Date: Date: Date: Date: Date: Date: Approved by: Approved by: Approved by: SANITARY SEWER SERVICE: Ordinance Approving Agreement: Administrative Fee: $ Approved Sewer Allotment (gallons per month): Approved Sewer Use(s): Size of Tap Required: Special Conditions: Misc. Notes: Date of Approval: Receipt #: Date of Payment: CITY APPROVALS FOR SAN IT ARY SEWER SERVICE: Date: Date: Date: Date: On-Site Plumbing Inspected/Approved by: Off-Site Utility Extension Inspected/Approved by: Sample Well Inspected/Approved by: Industrial Waste Permit Approved by: Additional Requirements of SSSA (Re: Exhibit "An): 1. 2. 3. Approved by: Approved by: Approved by: Date: Date: Date: 9 REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 12. 2010 Source of Funds: N/A Requested By: Tim Tietiens Account Number: N/A Department: Planninl! Amount Budgeted: N/A Report: _Resolution: _Ordinance:...L Amount Requested: N/A Exhibits: . Ord. for Water & Sewer Service Agreements . Water Service Agreement · Sanitary Sewer Service Agreement . Area Map Budgeted Item: _YES ..x.....NO SUMMARY & RECOMMENDATION Seawater, Inc. has approached the City for water and sanitary sewer service to its newly- constructed facility located at 4450 New West Drive in Bayport North Industrial Park, located in the City's Bayport Industrial District (see Area Map). Council has approved a policy to provide water and sanitary sewer service to companies located outside the city limits and within the City's industrial districts (ETJ). These companies are required by the policy to execute and maintain a current Industrial District Agreement (IDA) with the City (Re: Seawater, Inc. 2007-IDA-119 approved 1-25-10). The company desires to obtain water and sanitary sewer service under the terms of this policy. Based on the company's stated demand for domestic uses, the average daily demand for potable water is 450 gallons per day. Under the terms of the policy, the applicant will pay one and one- half (1-1/2) times the City's current utility rate for service. Additionally, Seawater, Inc. is subject to a one-time administrative fee of $5,000 associated with each agreement for which payment has been received. The terms of the company's Water Service Agreement and Sanitary Sewer Service Agreement will expire on December 31, 2019, plus any renewals and extensions thereof. However, the agreements shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or, if the City exercises its right of termination. ppr ve an ordinance authorizing the City Manager to enter into a Water Service Agreement and Sanitary Sewer Service Agreement with Seawater, Inc. Council A enda Ron Bottoms, City Manager ~ /8 /'0 Date ORDINANCE NO. 20'0 - 3:2 ~~_ AN ORDINANCE APPROVING AND AUTHORIZING A WATER SERVICE AGREEMENT AND A SANITARY SEWER SERVICE AGREEMENT BETWEEN THE CITY OF LA PORTE AND SEAWATER, INC.; 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, in substantially the form as shown in the document which is attached hereto and incorporated herein by the reference. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. The City Manager is hereby authorized to execute said contact, agreement, or other undertaking described in the title of this ordinance. 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. ORDINANCE NO. 2009- 3J.3tf PASSED AND APPROVED, this ATTEST: .at A~tJ~ Knox W. Askins City Attorney PAGE 2 l).rJ.. day of ~ , 2009. CITY OF LA PORTE By: STATE OF TEXAS S COUNTY OF HARRIS S CITY OF LA PORTE WATERSER~CEAGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and SEAWATER. INe. hereinafter called "COMPANY". I. COMPANY is the owner of certain real property which is situated within the CITY'S Battleground or Bayport Industrial District and not within the corporate limits ofthe CITY. CITY and COMPANY are parties to a current Industrial District Agreement. II. COMPANY is desirous of purchasing potable water from CITY for usual human domestic uses. Previous planning considerations for the long-range potable water supply of CITY did not include the needs of properties located outside the corporate limits of CITY. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited water service. CITY agrees, however, to provide limited potable water service to COMPANY. For and in consideration offumishing domestic potable water by CITY, the parties hereto agree as follows, to-wit: III. COMPANY has made certain representations to CITY as to the number of employees that will be located at the COMPANY'S property as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. Upon review of these representations, the City has determined the following: Number of Full-Time Employees on site 6 + Number of Full-Time Contract Employees on site 3 = Total On-Site Full-Time Employees 9 Potable Water Approved for Domestic Use (Total on-site Employees times 50 gpd per employee) 450 Total Amount of Potable Water Approved for COMPANY (Average Daily Volume, gpd) 450 IV. 2 CITY has determined that adequate resources are available to CITY to furnish potable water to COMPANY based on the following terms and conditions, to-wit: (A) COMPANY shall pay to CITY a one-time administrative fee of$5.000. (B) The total amount of potable water approved to COMPANY is established at Four Hundred Fifty (450) eallons per day. This number is based on an average of fifty (50) gallons per employee per day as established by CITY. (C) The average monthly volume of Four Hundred Fifty (450) eallons per day is established by multiplying the average daily volume by a factor of 30.5, which shall be used to facilitate CITY'S utility service billings. (D) Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly volume of Thirteen Thousand Seven Hundred Twenty Five 03.725) gallons. Repeated consumption greater than the established average monthly volume may result in termination of service. (E) COMPANY shall pay the standard water tap/meter fee based on CITY'S current tap/meter fee schedule. Upon final approval of COMPANY'S on-site and/or off-site utility construction by CITY, COMPANY shall pay the CITY'S standard water deposit fee through CITY'S Utility Billing Division prior to receiving water service from CITY. (F) The cost of water up to the average monthly volume of Thirteen Thousand Seven Hundred Twenty Five 03.725) gallons shall be billed at one hundred fifty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (G) The cost of water for amounts used in excess of the established average monthly volume shall be billed at two hundred percent (200%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (H) COMPANY shall submit a preliminary site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. COMPANY'S development may be subject to certain additional requirements as described in Exhibit A. These requirements shall be shown on the final site plan and approved by City. (I) COMPANY'S site design and site development will, in certain cases, be subject to specific "Rules and Regulations" as defined in Exhibit "c" of COMPANY'S Industrial District Agreement with CITY. (1) All plumbing installed by COMPANY connected to the domestic water line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. (K) A reduced pressure zone backflow preventer shall be installed and maintained by COMPANY to protect CITY from any possible cross-connections. (L) COMPANY'S potable water supply system will be segregated from any existing and future fire protection system. 3 (M) The total cost for the engineering design and construction of any potable water main, service line, back flow preventer, meter or other required appurtenances will be the responsibility of COMPANY. (N)COMPANY agrees to be bound by all applicable ordinances of CITY, relative to the furnishing of potable water to customers within the corporate limits of CITY. (0) There shall be no resale of water provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (P) CITY'S personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY shall have the right to inspect any and all work related to the furnishing of potable water to COMPANY. (Q) CITY shall have the right to interrupt or temporarily suspend said water service to COMPANY if an emergency arises and there is not an adequate water supply to meet the needs of the citizens of La Porte. (R) CITY reserves the right to enforce its drought contingency plan on all water customers at CITY'S sole discretion. (S) CITY does not guarantee its water system to provide specific water pressure and/or water volume requirements of COMPANY. V. All expenses of the installation of the meter; service lines from the main to the meter; and from the meter to COMPANY'S facilities, shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities beyond the meter. CITY shall own the meter. VI. In the event a State or Harris County license, permit, or permission to install the water main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S water facilities, reading its water meter(s) and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notifY COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. VIII. 4 CITY reserves the right to terminate this agreement in the event of violation of the terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (l0) calendar days from date of written notice by CITY may result in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the integrity of the public water supply is threatened. IX. Upon receipt of written notice oftermination, COMPANY shall have up to six (6) months to prepare for transition to another water supply. If the transition is not complete within said six-month period, CITY shall have the right to terminate water service at its sole discretion. x. In the event of any conflict between the terms and provIsions of this Water Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Water Service Agreement shall control, to the extent of such conflict. The term of this Agreement shall expire on December 31. 2019, plus any renewals and extensions thereof. However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right oftermination. ENTERED INTO effective the /21- day of , clDtD any's Authorized Representative Printed Name: +<0 N ~ \..,~ \i:$ ~ ~ \..l ~ \.i l'Y',. ~ Company Representative's Title: ~(L\~5,.(;J ~.~\::- Company's Address: P,Q J6o~ d..~~SS() \-\ O\.A S\'J'N ~ "} () 1 ' ~ '&' .s t:) A TIEST: 4Y!tlUIt~;J;(dtI Martha A. Gillett City Secretary z;:;:v-~ By: Knox W. Askins City Attorney 5 CITY OF LA PORTE ~f) Barry BeaSley/ Mayor Ron Bottoms City Manager 6 EXHIBIT "A" to Water Service Agreement The Water Service Agreement is hereby amended and supplemented to include the following additional requirements agreed to by CITY and COMPANY. These requirements represent contractual obligations of COMPANY to receive water service from CITY per the terms of the Water Service Agreement and this addendum. COMPANY shall fulfill each of the following additional requirements as set forth below. Additional ReQ uirements of COMPANY: 1. Usage of CITY water by COMPANY for purposes other than human consumption (domestic purposes) shall be limited to the following: Not applicable 2. COMPANY shall pay to CITY $ 0.00 as a pro-rata reimbursement for construction of the water main serving its property by other parties. Initial for Approval: CITY APPRO V AL: COMPANY APPROVAL:0- STATE OF TEXAS S COUNTY OF HARRIS S CITY OF LA PORTE SANITARY SEWER SERVICE AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and SEAWATER. INe. hereinafter called "COMPANY". I. COMPANY is the COMPANY of certain real property, which is situated in CITY'S Battleground or Bayport Industrial District and not within the corporate limits of the CITY. CITY and COMPANY are parties to a current Industrial District Agreement. II. COMPANY is desirous of purchasing sanitary sewer service from CITY for usual human domestic uses. COMPANY recognizes that CITY cannot at this time provide permanent and unlimited sanitary sewer service. CITY agrees, however, to provide limited sanitary sewer service to COMPANY. For and in consideration of furnishing sanitary sewer service by CITY, the parties hereto agree as follows, to-wit: III. COMPANY has made certain representations to CITY as to the number of employees, as of the date of this agreement, upon which representations CITY has relied in entering into this Agreement. Upon review of these representations, the City has determined the following. Number of Employees on-site 6 Number of Contract Employees 3 Total on-site Employees 9 Sanitary Sewer Required for Domestic Use (Total on-site times 50 gpd per employee) 450 Total Amount of Sanitary Sewer Volume Approved For COMPANY (Average Daily Volume, gpd) 450 2 IV. CITY has determined that adequate facilities are available to allow CITY to furnish sanitary sewer to COMPANY based on the following terms and conditions, to-wit: (A). COMPANY shall pay to CITY a one-time administrative connection charge of $5.000. (B). COMPANY shall pay the standard sewer tap fee based on CITY'S current sewer tap fee schedule. Upon final approval of COMPANY'S on-site and/or off-site utility construction by CITY, COMPANY shall pay the CITY'S standard sewer deposit fee through CITY'S Utility Billing Division prior to receiving sewer service from CITY. (C). The average daily volume is established at Four Hundred Fifty (450) gallons per day. This number is based on an average of fifty (50) gallons per employee per day established by CITY. (D). The average monthly volume is calculated to be eighty-five percent (85%) of the average daily volume multiplied by a factor of30.5, which shall be used to facilitate service billings. (E). The cost of sanitary sewer service up to the average monthly volume of Eleven Thousand Six Hundred Sixty Six (11.666) gallons shall be one hundred fifty percent (150%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (F). The cost of sanitary sewer service for amounts in excess of the established average monthly volume shall be two hundred percent (200%) of the CITY'S rate as established from time to time for commercial customers inside its corporate limits. (G). Nothing contained in this Agreement shall obligate CITY to furnish more than the average monthly volume of Eleven Thousand Six Hundred Sixty Six (11.666). Repeated sanitary sewer delivery greater than the established average monthly volume may result in termination of service. (H). COMPANY agrees that during periods when the CITY'S collection system is surcharged, the CITY may require the suspension of use of the sanitary sewer system for periods not to exceed thirty-six hours. (I). CITY shall have the right to interrupt or temporarily suspend said sanitary sewer service to COMPANY if an emergency arises and there is not an adequate sewer collection or treatment capacity to meet the needs of the citizens of La Porte. (J). COMPANY shall file application with CITY for an Industrial Waste Permit and hereby agrees to be bound by CITY'S Industrial Waste Ordinance (Chapter 74, Article II of the Code of Ordinances) and any subsequent amendments or revisions. (K). Owner shall install a sanitary sewer sampling well in accordance with CITY'S standards to ensure no sewer waste, other than domestic waste enters its sanitary sewer system. (L). The total cost for the engineering design and construction of any sanitary sewer main, service line, lift station, meter or other required appurtenances will be the responsibility of 3 COMPANY. (M). COMPANY agrees that it shall be bound by all applicable ordinances of CITY, relative to the furnishing of sanitary sewer service to customers within the corporate limits of CITY. (N). COMPANY shall install a sanitary sewer sampling well in accordance with CITY's standards. (0). All plumbing installed by COMPANY connected to the sanitary sewer line from CITY, shall meet all applicable State of Texas and CITY plumbing code requirements. CITY'S engineering and code enforcement personnel shall have the right of prior review and approval of COMPANY'S plans and specifications for the plumbing system(s). CITY plumbing inspectors shall have the right to inspect any and all work related to the furnishing of sanitary sewer service to COMPANY. (P). There shall be no resale of the sanitary sewer service provided by CITY, nor any extension of service lines by COMPANY to serve other parties. (Q). COMPANY shall submit a certified site plan showing the total acreage of the tract including present and proposed improvements and a suitable location map of the site. COMPANY'S development project may be subject to certain additional requirements as described in Exhibit "A", attached. These requirements shall be shown on the site plan and approved by City. V. All expenses of the installation of service lines from the main to the COMPANY'S facilities shall be solely at the expense of COMPANY. COMPANY shall own and maintain all service lines and plumbing facilities. VI. In the event a State or Harris County license, permit, or permission to install the sanitary sewer main is revoked, or relocation or adjustment is required, CITY will not be responsible for the expense of such relocation, adjustment, or replacement. VII. CITY reserves the right of entry at all reasonable times for the purpose of inspection of COMPANY'S sanitary sewer facilities, and to observe compliance with the terms and conditions of this Agreement. When exercising its right of entry, CITY shall notifY COMPANY in advance. CITY also agrees to follow established health and safety policies in effect at COMPANY'S facility. VIII. CITY reserves the right to terminate this agreement in the event of violation ofthe terms and provisions hereof by COMPANY. CITY will provide COMPANY with written notice of any defects and COMPANY shall have the opportunity to cure any defects. Failure to correct defects within ten (10) days may result in termination of Agreement. CITY shall have the right to summarily correct, at COMPANY'S expense, any defect or deficiency, when in its opinion the 4 integrity of the public sanitary sewer system is threatened. IX. Upon receipt of written notice of termination, COMPANY shall have up to six (6) months to prepare for transition to another sanitary sewer service provider. If the transition is not complete within said six-month period, CITY shall have the right to terminate sanitary sewer service at its sole discretion. X. In the event of any conflict between the terms and provisions of this Sanitary Sewer Service Agreement and the terms and provisions of the Industrial District Agreement between the parties, the terms and provisions of the Sanitary Sewer Service Agreement shall control, to the extent of such conflict. The term of this Agreement shall terminate on December 31, 2019. However, this Agreement shall automatically expire at such time as there is no effective Industrial District Agreement between the parties or if CITY exercises its right of termination. , ENTERED INTO effective the ~ day of ~ , d-cJID s Authorized Representative Printed Name: ~N..~'-~ ~ e;~",,-~~f'r\~\-\ Company Representative's Title: PQ ~~, O~M.', Company's Address: P .0.. <SO)l d b~ 'S'$C) 1~c)'u.'S\"hl~ IIJOI- ~S'$o A TrEST: ~~Cl.#d/1 Martha A. Gillett City Secretary APPROVED: 4. · (Zrl ~ By: Knox W. Askins City Attorney 5 CITY OF LA PORTE --:;;J ~" ~-- W Barry Mayor ( Ron Bottoms City Manager --- 6 EXHIBIT "A" to ~Service Agreement $fNnw.ey~~ The Sanitary Service Agreement is hereby amended and supplemented to include the following additional requirements agreed to by CITY and COMPANY. These requirements represent contractual obligations of COMPANY to receive sewer service from CITY per the terms of the Sanitary Service Agreement and this addendum. COMPANY shall fulfill each of the following additional requirements as set forth below. Additional Requirements of COMPANY: 1. Usage of CITY sewer by COMPANY for purposes other than human consumption (domestic purposes) shall be limited to the following: Not applicable 2. COMPANY shall pay to CITY $0.00 as a pro-rata reimbursement for construction of the sanitary sewer main serving its property by other parties. Initial for APproval:! <_ " ,'X--- CITY APPROVAL: \ \ COMPANY APPROVAL: @ REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 12. 2010 Appropriation Requested By: Stephen L. Barr Source of Funds: Department: Parks & Recreation Acc't Number: Report: -K-Resolution: _Ordinance: _ Amount Budgeted: Exhibits: Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION See attached Report on Brookglen Park Spray Ground. Ron Bottoms, City Manager 3 /e /R> Date Brookglen Pool Uplift - Report & Recommendation April 12, 2010 Overview On January 25, 2010 City Council received a report on the Brookglen Park Pool uplift, and gave staff direction to: · Move forward with the pool demolition. · Continue with the installation of the new roof on the restroom facility. · Provide the Council with information regarding a spray ground installation at the park, both with and without a re-circulation system to capture the water used. · Provide the Council with some renderings showing the how the proposed spray ground will look as well site views as to where it would be located at the park. · Utilize unencumbered funding from budgeted CIP trail funds to accomplish the installation of the new spray ground amenity. The pool demolition has been completed, the site has been compacted and backfilled. We are now ready to install the new roof over the restrooms very shortly. We have received some renderings and a proposed site plan for the new spray ground, as shown in the supporting documents. The new spray ground will tie in with the playground and will provide a large recreation area for the children in the community, while providing a shaded structure for parents to supervise their children or get some sun, as they see fit. Circulation Issue The issue of circulation of water for the spray ground was brought up at the previous workshop. In researching the situation and the associated costs both with and without, there were some interesting information that was obtained. . First, small children are much more likely to drink water in a spray ground than in a pool. Re- circulated water, no matter if treated or not, always carries the chance of contamination. Fresh potable water from the City's water system does not carry the danger of contamination because it is like "drinking from the tap." Second, using drinking water for a spray ground is very similar to lawn irrigation. In both instances, the water is poured out on the ground. Yet irrigation water is not considered wasted water because it is used for a specific purpose. The same is true for a spray ground; water use for the purpose of recreation is as legitimate as water use for lawn or sports field irrigation. Third, the cost of installation of a re-circulation system is more than Yz again as expensive as the uncirculated system. There is also the added expense of chemical treatment to sanitize the water on an annual basis. And, due to evaporation and leakage, the recirculation system will require water to be added as well. . . . Fourth, the long-term drainage plan for the Brookglen community tentatively includes a wet- bottom pond on this site. Water from an uncirculated spray ground could be used to feed the wet-bottom detention facility, adding a beautiful amenity much like the one at Wood Falls Park (see attached photos). Estimated Water Costs for Uncirculated SDrav Ground The spray ground usage estimate from the manufacturer, for the proposed system is as follows: . +/- 50 gallons per minute with an average use of 4 hours per day (the system shuts itself off when there are no people present), is 12,000 gallons per day. . 12,000 gallons for 30 days is +/-360,000 gallons per month . Per the City of La Porte Utility Billing, 360,000 gallons per month (with no Sewer charge) would cost the department +/- $1,373 per month . The system would operate for approximately 6 months, for an average cost of $8,238 per year, which compares to +/- $37,000 for a conventional pool, for a (much shorter) swim season. Estimated Water Costs for Re-circulated SDrav Ground The spray ground cost estimate for the same system, using re-circulated water is as follows: . Water costs, for initial start-up, top-off, and backwashing is approximately $60 per month. . Water treatment chemicals, electricity for pumps is approximately $400 per month (pumps must be turned on initially and turned off at the end of each day, which limits the amount of usage by the community, to standard operating hours). . Re-circulated water system would be maintained on a year-round basis. Although pumps would not have to run all the time, there still would be a monthly expense for labor, electricity and chemicals. . Re-circulated water must be tested hourly to assure that the proper levels of chlorination are obtained, and maintained daily. This would necessitate staffing 7 days per week at the site. This requirement alone would require an additional person or overtime for at least 2 days per week during the season. Estimated cost for testing, +/- $1,000 per month. · Total estimated cost would approach that of the uncirculated cost of operation at around $8,000 annually. ODtions So, there are several options to review, as follows: 1. Install the spray ground and new playground without circulation (see attached layout). Cost is expected to be approximately $230,000. 2. Install just the spray ground without the playground and without circulation (see attached layout). Cost is expected to be approximately $200,000. 3. Install the spray ground and new playground with circulation (see attached layout). Cost is expected to be approximately $350,000. 4. Install just the spray ground with circulation but without the playground (see attached layout). Cost is expected to be approximately $320,000. Staff Recommendation Staff is recommending the installation of the spray ground and new playground without circulation, per the discussion above, and for these reasons also. . The spray ground will offer a new recreation experience for the neighborhood. The variety of toys available will appeal to a wide range of children, from toddlers to early teens. There will still be ample shade for parents to socialize and observe the activities. . A spray ground does not require water recirculation. It uses water directly from the City's water supply, so there are no expensive pumps, chemicals, and best of all, it does not require staffing. The water is activated by an electronic switch and automatically shuts off during periods of inactivity, so there is no wasted water. . Staff estimates an operating savings of approximately $30,000 each year, over the operation of the conventional pool at Brookglen ($8,200 vs. $38,642 annually) . Another huge advantage is, since the spray ground does not require lifeguards, there would be no charge for its use. Anyone in the neighborhood could use it free during the periods of operation. Plus, because we would not be bound by lifeguard schedules, the spray ground could open as early as April 1st and close around October 1st, thereby essentially doubling the water play season at 1/51h the cost of a conventional pool. · The attendance at this park could be expected to increase dramatically. When the spray pad and water toys were introduced at San Jacinto Pool, the swim season pool attendance rose from approximately 1,500 patrons, to over 10,000 this past swim season. This does not take into account the extended season. These facilities are very popular with both children and their parents. If there are questions or further information is needed, please do not hesitate to contact me. Stephen Barr, Director Parks & Recreation Department Attachments -"-""-'~~'""""""'""""""""".~""~"^"--"""--"~~---'_..~""-"",""""-_...."""",,,_.. 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"""""" Brookglen SplashPark W11408-A I ~f~2~?:~a~~~I~;Y:E;~::; I 3002 sa F1' r- ;;' ... rn VI E..Q ",:1: ..crtl ",,::l. VI -t .JJ ~ ... ... rn -t ) c: !!!. lXJ VI ~ 0 3' ~ III n Q, 0 ;:0;- rtl ~ :J E-= ~r- "'VI "'rtl _n 00 2 III oo~ VI VI "":J Cl'O ... 1"'110 ... 0 r- III 3 rtl 10 VI 10 0 :J" VI :J 0 :1: 2. r- ;;' ... rn VI E..Q ",:1: ..crtl "'... ... VI "T1 ... o 10 E E;!I. o~ ~E rtl 0" -._,..,..."'C n E8 0- VI VI 00'. n ;:0;- " ... III ."n W _. ortl VI" -Ill ... o ... -t Eg on 0:J" ~~ o Brookglen SplashPark I All RIGHTS RESERVED I (92008 Water Odyssey Wl14Q8-A www.waterodyssey.com (51Zj3Hd155 3002 SQ FT lXJ III 0" E~ 00 W:J ~1C r- rtl 10 VI "T1 E= o:2;~ W VI ' w~t 41\ by Fountain People, Inc. 14 CITY COUNCIL DRAINAGE REPORT April 8, 2010 Klotz Design and Contract Construction · Design of Sheet Flow Relief Structure Improvements to Creekmont. Fairmont Park West. Brookglen and Fairmont Park East. Bidding documents have been reviewed -awaiting final revisions on 2 structures. First phase of flume construction scheduled bid in May for 10 flumes (5 along B112 main stem only, and 5 others in Fairmont West, Fairmont East, Creekmont and Glen Meadows). Easement documents have been submitted to remaining landowners for execution. · Drainage Study of Brookglen. Consultant is continuing design work for three (3) proposed detention facilities. One facility will be placed on hold, after design, to await completion of current and proposed buyouts. Two facilities will be bid upon completion of design. At the request of the Drainage and Flooding Committee, the City Engineer is examining the issue of applying for a new rating under FEMA's Community Rating System (CRS) program. With the buyout of repetitive losses, especially in Brookglen, and upcoming drainage improvements, it is possible that the city's CRS rating could be lowered, resulting in lower flood insurance premiums for residents. · Fairmont Park East - Fleetwood Drive. The Preliminary Engineering Report (PER) was approved by the Drainage and Flooding Committee on March 1, 2010. City Council approved the proposal by Klotz and Associates to provide final design and construction phase services on March 8, 2010. Bid-ready documents are to be delivered within 120 days. In-House Design and Construction of City-initiated Proiects. · South La Porte Bav Outfalls. The plans and specifications for the Oakhurst Outfall have been furnished to Harris County for implementation. The County has not furnished a timeline for bidding. Staff is meeting with the Area Engineer for TxDOT to discuss regarding of ditches on South Broadway to this new outfall. An additional outfall has been identified on Jefferson from Bayshore Drive to the bay. Staff has completed design and obtained quotes. Construction should begin this month. · F-2l6 Regional Detention Proiect. Clearing of F-2l6 regional detention is underway. First phase of excavation is approximately 60% complete. Corps of Engineers permit is being drafted - receipt is expected soon. · City-Wide De-silting of Major Channels - Staff has identified several major channels not currently maintained by flood Control for possible de-silting. These include B 106-05, Arizona from E Street to Park, South 3rd Street from Fairmont Parkway to the WWTP and several side channels off South 8th. The City Engineer will have surveyed, design improvements and bid. · Coordination with Harris County Flood Control District. - HCFCD has awarded the F101 de-silting contract from the Exxon pipeline corridor to Lomax School Road. This Project should be mobilizing very soon. In- House Drainage Maintenance Activities. · Bav Colony. Maintenance cleaning of Bay Colony Drive and all side streets is 90% complete. Once completed, an additional underground system will be constructed on the north side of Bay Colony drive to divert water from adjacent side streets to the new outfall, up to the east side of Dolphin. Material for this project has been ordered and received. · North and South Shady Lane. City has forwarded a proposed easement of the proposed sheet flow structure to the resident at the east end of N. Shady Lane. Once the signed easement is received, construction will begin. Pipeline operators have surveyed line and elevation of their facilities crossing the outfalls on Broadway and Sunrise into the Bayport Channel. Staff has determined that the outfalls cannot be reestablished below the existing pipelines. Design is underway to provide sheet flow in lieu of underground drainage. · In-Fill Drainage. Cleaned ditches in various areas of the city. Currently concentrating in the area bounded by South 8t\ Main, Broadway and Fairmont Parkway. Once this area is completed, the next area scheduled for maintenance cleaning is the Spenwick area. Staff has worked with the residents at the end of Fondren (Bayside Terrace) and has discovered that the original outfall to the bay has been blocked by concrete rubble replaced on the shoreline after Ike. Public Works is scheduled to correct this problem and reestablish drainage for the south end of Fondren. · Total Drainage Maintenance Completed This Period o Cleaning of Ditches 11,189 LF o Resetting culverts 176 LF o Culvert Maintenance/cleaning 7,790 LF o Cleaned and televised storm sewers on Main Street and South 8th Street. Meeting Handout La Porte City Council Presentation Economic Alliance Houston Port Region Projects & Work Summary 4/12/10 1. Projects that the Economic Alliance has worked on: a. Last three year "wins", specifics and totals b. Sea Scouts Sailing School & The Ports Maritime Cmt & San Jac's Committee that is working with La Porte's HS on their Maritime Academy and have worked with Debbie Seibert and Daryl Leonard c. Total # projects worked on from 2006 - 2009 2. New Business Development Task Force a. Meets monthly to discuss the summary of leads and city updates on ongoing developments 3. Main Street Advisory Committee a. Marketing and Developed a Brochure 4. La Porte Citizens Advisory Committee (CAC) a. Meets monthly to discuss any and all issues relating to living and working with industry in this community 5. ABC Power Breakfast Committee a. Worked with Stacey Osborne and Susan Kelly - Procurement Mgr for La Porte 6. Business Retention & Expansion Program a. 33 companies 7. La Porte Bayshore Chamber of Commerce a. MM on the Economic Development Committee - Meets Monthly b. Economic Development Annual Bus Tour c. Attend and support Monthly luncheons 8. Since we office in La Porte, eight visiting site consultants come to La Porte to meet with us and have the opportunity to see La Porte 9. Small Business Development Center (San Jac) offices in our office a. Counseling services for new small businesses 10. 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