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Home My WebLink About2010-5-10MINUTES OF REGULAR MEETING AND PUBLIC HEARING OF THE LA PORTE CITY COUNCIL May 10, 2010 1. Call to order The meeting was called to order by Mayor Barry Beasley 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 Mayor Barry Beasley Members of Council Absent: None Members of City Executive Staff and City Employees Present: City Manager's Office: Ron Bottoms, Stacey Osborne, Melisa Lanclos and John Joerns Legal: Clark Askins City Secretary's Office: Martha Gillett Public Works: Steve Gillett Planning: Tim Tietjens and Isaac Rodriquez Police Department: Ken Adcox, Ron Parker and Chris Paige Parks and Recreation: Stephen Barr Fire Department: Mike Boaze and Donald Ladd Fire Marshal: Cliff Meekins Finance: Michael Dolby, Phyllis Rinehart, Lori Auchter, Paula Bradstreet, Gay Collins, Lindsey Campuzano, Burnie Willis, Janet Hughes, Rose Hall, Shelley Wolny, Bonnie Allen and Lori Langelier EMS: Ray Nolen Others Present: Ted Powell, Adam Yanelli of the Bayshore Sun, Tim Aguilar, Kathryn Aguilar, Dottie Kaminski, Phillip Hoot, Bridget Yeary, Dan Chappell, Anthony Villarreal, Leslie Guzman, David Janda, Mark Follis, Colleen Hicks, Jubil Smith, Gary Huffman, Chuck Rosa, Mrs. Rosa and other citizens. 2. The Invocation was given by Reverend Dan Chappell of Fairmont Park Church. 3. Councilman Mike Clausen led the Pledge of Allegiance. 4. Presentations/Proclamations A. Mayor Beasley presented the "Motorcycle Safety and Awareness Month" proclamation to several citizens in attendance. B. Finance Director Michael Dolby and his staff were presented with The 2008 Certificate of Achievement for Financial Reporting, the 2009 Distinguished Budget Award, and the Certificate of Distinction for Investment Policy. Minutes of Regular Meeting and Public Hearing of La Porte City Council on May 10, 2010 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, Public Hearing and Workshop Meeting held on April 26, 2010 - M. Gillett B. Council to consider approval or other action authorizing the City Manager to execute a contract with Cobb Findley and Associates to provide professional engineering services for concrete street replacement and storm sewer on South 8~ Street - S. Gillett C. Council to consider approval or other action authorizing the City Manager to execute an agreement with Arando Brothers Construction for the construction of the Mc Cabe Road Trunk Sewer and the Mc Cabe Road Trail System serving the new Bayshore Elementary School - S. Gillett D. Council to consider approval or other action authorizing an amended agreement with Harris County Community Services Department for participation in the application and distribution of Hurricane Ike Community Development Block Grant funds - T. Tietjens E. Council to consider approval or other action regarding an ordinance authorizing an Interlocal Agreement between the City of La Porte and Harris County Flood Control District, for use of Harris County Flood Control District property for fire safety training exercises (Ord. 3246) - D. Ladd F. Council to consider approval or other action regarding an ordinance amending Chapter 34 "Environment" of the La Porte Code of Ordinances regarding prohibition of sound nuisances outside of city limits. (Ord. 3247) - C. Askins Items E and F were pulled for separate discussion. Assistant City Attorney Clark Askins read the following agenda captions: Ordinance 3246 - AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY FLOOD CONTROL DISTRICT ,FOR USE OF HARRIS COUNTY FLOOD CONTROL DISTRICT PROPERTY FOR FIRE SAFETY TRAINING EXERCISES, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. Ordinance 3247- AN ORDINANCE AMENDING CHAPTER 34 "ENVIRONMENT", OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE BY AMENDING ARTICLE III "NOISE POLLUTION" TO DEFINE AND PROHIBIT NOISE NUISANCE 5000 FEET OUTSIDE OF LA PORTE CORPORATE LIMITS, AS ALLOWED BY SECTION 217.042 OF THE TEXAS LOCAL GOVERNMENT CODE; PROVIDING A PENALTY OF $2000 FOR EACH OFFENSE; PROVIDING A SEVERABILITY CLAUSE; CONTAINING AN 2 Minutes of Regular Meeting and Public Hearing of La Porte City Council on May 10, 2010 OPEN MEETINGS CLAUSE; PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF, AND PROVIDING AN EFFECTIVE DATE HEREOF. Motion was made by Councilmember Engelken to approve the consent agenda as presented. Second by Councilmember Rigby. Motion carried unanimously. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Mayor Pro Tem 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 -addressed Council with concerns regarding the Five Points Project and requested Council to conduct an independent forensic audit. Tim Aguilar - 3119 Fondren -addressed Council with concerns regarding the Five Points Project and requested Council to conduct an independent forensic audit. 7. Council to consider approval or other action authorizing the Fiscal Affairs Committee to develop a scope of work for a review of the financial transactions of the Town Plaza Project and a proposed budget - C. Engelken Councilmember Engelken presented summary and recommendation and answered Council's questions. Motion was made by Councilmember Leonard to approve authorizing the Fiscal Affairs Committee to develop a scope of work for a review of the financial transactions of the Town Plaza Project and a proposed budget. Second by Councilmember Engelken Motion carried unanimously. Ayes: Mosteit, Engelken, Black, Clausen, Leonard, Moser, Rigby, Zemanek and Mayor Beasley Nays: None Abstain: None Absent: None 8. Conduct a Public Hearing to discuss the City of La Porte's participation in the Texas Enterprise Zone Program - S. Osborne Open Public Hearing -Mayor Beasley opened the Public Hearing at 6:38 p.m. Economic Development /Main Street Coordinator presented summary and overview. 3 Public Comments: There were no public comments. Minutes of Regular Meeting and Public Hearing of La Porte City Council on May 10, 2010 Recommendation of Staff -Staff recommended moving forward. Mayor Beasley closed the Public Hearing and reconvened Regular Meeting at 6:57 p.m. 9. Consider approval or other action regarding an ordinance authorizing the City of La Porte's participation in the Texas Enterprise Zone Program, designating a liaison for communication with interested parties, and nominating INVISTA S. a r.l. to the Office of the Governor Economic Development & Tourism (EDT) through the Economic Development Back as an Enterprise Project (Ord. 3248) - S. Osborne Assistant City Attomey Clark Askins read Ordinance 3248, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, AUTHORIZING THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE; PROVIDING TAX INCENTIVES, DESIGNATIING A LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES, AND NOMINATING INVISTA S.a r.l, TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT & TOURISM (EDT) THROUGH THE ECONOMIC DEVELOPMENT BANK (BANK) AS AN ENTERPRISE PROJECT (PROJECT); CONTAINING AN SEVERABILITY CLAUSE; CONTAINING AN OPEN MEETINGS CLAUSE; PROVIDING AN EFFECTIVE DATE HEREOF Motion was made by Councilmember Mosteit to approve ordinance 3248 as presented by Ms. Osbome. Second by Councilmember Clausen. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard, Clausen, Mayor Pro Tem Black, Mosteit and Mayor Beasley Nays: Zemanek Abstain: None Absent: None 10. Council to consider approval or other action authorizing renegotiation of the Lease Agreement, dated January 1, 2008, between the City of La Porte and Economic Alliance Port Region- R. Bottoms Motion was made by Councilmember Zemanek to (1) Terminate the lease agreement with Economic Alliance Port Region, (2) negotiate a new lease for 85 cents per square foot per month (3) require and $20,000.00 annual payment to Economic Alliance Port Region Second by Councilmember Moser. Assistant City Attomey advised Council there could not be a motion to terminate the Economic Alliance lease as the agenda was not posted to do so. Mayor Beasley called fora 10 minute break. Council took a ten minute break beginning at 7:00 p.m. Council returned and the meeting was re-opened at 7:10 p.m. 4 Councilmember Moser withdrew his second to the motion on the table. Minutes of Regular Meeting and Public Hearing of La Porte City Council on May 10, 2010 Councilmember Zemanek amended his motion to direct City staff to meet with the Economic Alliance to discuss a renegotiation of the lease for .85 cent per square foot per month and exclude consumables such utilities and janitorial service and to have an annual fee of $20,000.00 paid to the Economic Alliance Port Region. Second by Councilmember Moser. Motion carried. Ayes: Engelken, Rigby, Moser, Leonard Zemanek. Nays: Clausen, Black, Beasley and Mosteit Abstain: None Absent: None 11. Receive Report from Fiscal Affairs Committee -Chairman Engelken Chairman Engelken of the Fiscal Affairs Committee provided a report. City Manager Ron Bottoms left the meeting and Assistant City Manager John Joerns came to the table. 12. Receive annual update from Fire Department, Fire Marshal and EMS - D. Ladd Assistant Fire Chief Donald Ladd, EMS Chief Ray Nolen and Fire Marshal Cliff Meekins provided the annual update from the Fire Department, Fire Marshal and EMS 13. Receive Drainage Report from City Staff - S. Gillett Public Works Director Steve Gillett provided the monthly Drainage Report. 14. Assistant City Manager John Joerns provided Administrative Reports for the following: May 15, 2010 -Employee Picnic -Little Cedar Bayou Wave Pool - 2:00 p.m. - 6:00 p.m. May 17, 2010 -Special Called City Council Meeting to Canvass the Election Results - 6:00 p.m. May 19, 2010 -Plant Manager's Breakfast -Five Points - 7:30 a.m. May 20, 2010 -Harris County Mayor and Council Association Dinner -Monument Inn - 6:30 p.m. May 31, 2010 -City Offices closed in Observance of Memorial Day Newly Elected City Official's Orientation- TML -July 23-24-Irving, Texas 5 15. Council Comments: Clausen, Rigby, Moser, Black, Leonard, Zemanek, Engelken, Mosteit and Beasley. Minutes of Regular Meeting and Public Hearing of La Porte City Council on May 10, 2010 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 16. 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) 17. Considerations and possible action on items considered in executive session. 18. Adjournment Being no further business, the meeting was duly adjourned at p.m. Respectfully submitted, ;~~G~~G Martha Gillett, TR C City Secretary Passed and a roved on this 17~ day of May 2010. ayor ~rry Beasl c REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: May 10, 2010 Aoorooriation Requested By: S. Gillett Source of Funds: TRA994 and UTL 712 Department: Public Works o Report: X Resolution: Ordinance: Account Number: 005-9892-995-1100 047-9892-712-1100 Exhibits: Engineer's Recommendation Amount Budgeted: $372,050 $372,050 Exhibits: Bid Tabulation Amount Requested: Exhibits: Budi!eted Item: YES SUMMARY & RECOMMENDATION The City of La Porte has selected the firm of Cobb Fendley & Associates to provide professional engineering services to provide design, bidding and construction phase services for the construction of the McCabe Road Trunk Sewer and the McCabe Road Trail System serving the new Bayshore Elementary School. Following design, bids were opened on April 29, 2010. A total of seven (7) contractors submitted bids. Low bid was submitted by Arando Brothers Construction with an apparent base bid of $366,868.75. Mathematical errors, when corrected, lowered the base bid to $348,808.75. Alternate bids were also solicited for two (2) pre- fabricated bridges in place of concrete culverts and headwalls for the two Harris County Flood Control channels. The alternate bid for an additional $147,601.00 is not recommended. A contingency of$23,241.25 is also recommended for the Project. A portion of these funds will be utilized for testing of backfill compaction. Action Required bv Council: Authorize the City Manager to execute an agreement with Arando Brothers Construction for the construction of the McCabe Road Trunk Sewer and the e Road Trail System serving the new Bayshore Elementary School in the amount of 48,8 8.75, and authorize a contingency amount of$23,241.25. ~ Ir-~o Date =::= CobbFendley April 29, 2010 Mr. Steve Gillett Director of Public Works City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 VIA E.MAIL ORIGINAL BY MAIL Re: Recommendation of Contract Award McCabe Road Sanitary Sewer and Sidewalk Improvements Sealed Bid #10022 CFA No. 0912-015-00 Dear Steve: Bids received at 2:00 p.m. on April 29, 2010, have been reviewed for completeness and accuracy. The bid tabulation is attached. Aranda Brothers Construction turned in the low base bid. They are contractors for Fort Bend County, Harris County, and TxDOT. For the work scope involved, their qualifications would seem adequate. Their submitted bid contained mathematical errors that have been resolved in favor of the indicated unit prices, as detailed in the Instructions to Bidders contained in the bidding documents. The corrected figures are shaded on the tabulation and the corrected base bid sum is $348,808.75. The corrected base bid is $18,060.00 lower than the sum of $366,868.75 that was indicated on the bid form. CobbFendley is recommending that a construction contract for the base bid project be awarded to Aranda Brothers Construction in the amount of $348,808. 75. Sincerely, n' ~NDLEY & ASSOCIATES, INC. ~9~P- Vice presi~~ cc: Armando Aranda, Aranda Brothers Heath Lyle, CobbFendley File D:\CFA\2009\12015.mccabe_rd\ENG\Bid Phase\Ltr. Bid recommendation.doc 13430 Northwest Freeway, Suite 1100 I Houston, Texas 77040 I 713.462.3242 I fax 713.462.3262 I www.cobfen.com J!! z w " w > o 0:: 0. ~ '" -' .. .~ ~o wiij t-:co wz~ ~c:(~ 0.0::-' ClIW[2 -';:0. _w.. aU) i:'>- u~ Z .. U) o .. o 0:: W '" .. 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N .. ~ N.- ~ r! ~ : 11 ~ : l~ ~ ~ ~ ~ gg g l~oS ~ UH~ ~ :i.- -,,-~~ ~ . - ;!! ... .................. ... g ~ ~ ~~ug~..; N ~ ... -... ~ to..... < w < w ;1i ;1i < < -' -,}:; ~ ~ j . if gj ~ P;J g if ~ ~i l1 g~ <. - =: I t iiH~i j iiiiii ~~~~~8 ~ ; i M OJ en.. ~ ~,~~~~~~ ~ l- ,l-l-l-l-l-l- l- ~~~~~~~~ ~~ c cccccc c- N "'.. on <D'" 10 CD ~ " iD w >- ::l ffi ~ " "' ~ ;; a: o "' ~ ~ ~ " iD w "' :il ~ ;! o >- D REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: Mav 10.2010 Source of Funds: N/ A Requested By: Tim Tietiens Account Number: N/A Department: Planninl! Amount Budgeted: N/A Report: ~Resolution: _Ordinance: _ Amount Requested: N/A Exhibits: 1) Revised MOD Agreement Budgeted Item: _YES _NO SUMMARY City Council is being asked to amend our memorandum of understanding agreement with Harris County Community Services Department for participation in the application and distribution of Hurricane lke Community Development Block Grant (CDBG) phase one funds. These phase one funds ($1,599,995), will be used to generally address unmet needs in housing, infrastructure, and economic development caused by Hurricane lke damage and to mitigate future disaster events. The amended MOU agreement will allow the City to seek approval of Hurricane lke CDBG projects, and interact directly through the Texas Department of Rural Affairs (TDRA), the state agency appointed to oversee the CDBG funding and project approvals. The existing agreement with Harris County was for participation in the Harris County Consolidated Region (HCCR) application. While the proposed amendment will continue our participation in the HCCR from a funding perspective, the grant administration will no longer be through the Harris County Community Services Department, but with a grant administrator approved by the TDRA and funded by the grant. Action Required bv Council: Aut 'ze an amended agreement with Harris County Community Services Department for participation in app 'cation and distribution of Hurricane lke Community Development Block Grant funds. Ron Bottoms, City Manager 5 /~ ;'0 I Date THE STATE OF TEXAS S S COUNTY OF HARRIS S AMENDED AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE FOR PARTICIPATION IN THE APPLICATION AND DISTRIBUTION OF HURRICANE lIill DISASTER COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS This Agreement, made and entered into by and between HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, hereinafter sometimes referred to as "County," and THE CITY OF LA PORTE, a municipal corporation under the laws of the State of Texas, hereinafter sometimes referred to as the "City." WIT N E SSE T H: WHEREAS, the City has elected to participate in the Harris County Consolidated Region (HCCR) Application for Hurricane Ike Disaster Community Development Block Grant (CDBG) funds. These funds will be used to address unmet needs in housing, infrastructure, and economic development damages caused by Hurricane Ike and to mitigate future disaster events. Per Federal statute, a portion of funding must benefit low-income residents; and WHEREAS, the city hereby expresses its intent to seek formal approval of its governing body to participate under the HCCR CDBG Disaster Recovery program by executing a Memorandum of Understanding to the County; and WHEREAS, the County will allocate a proportion of Hurricane Ike Disaster Community Development Block Grant funding to the City based on a Method of Distribution established by the County for eligible project(s); and WHEREAS, this agreement shall be of no force and effect unless and until it is executed by both parties hereto and certified by counsel for all parties hereto on the forms set forth below. THEREFORE, the parties hereto agree as follows: 1. The City will prepare and submit an application for the Hurricane Ike Disaster Community Development Block Grant Recovery Program (CDBG Grant) to the Texas Department of Rural Affairs (TDRA) in the amount allocated in the Harris County Method of Distribution. The City understands and agrees that it will contract directly with TDRA, will be responsible for oversight of the City's CDBG Grant, and will maintain ownership and responsibility of long-term maintenance and operation of the improvements made using the CDBG Grant. If any proceeds awarded under the CDBG Grant are not expended by the City, the County will reallocate the proceeds of the CDBG Grant based on the Method of Distribution established by the County for eligible projects in accordance with federal and state law applicable to the CDBG Grant. 2. 3. IN WITNESS WHEREOF this instrument in duplicate originals, has been executed by the parties hereto as follows: APPROVED AS TO FORM: HARRIS COUNTY VINCE RYAN Harris County Attorney By: DOUGLAS P. RAY Assistant County Attorney By: DAVID B. TURKEL Director, Harris County Community Services Department Date Signed: CITY OF LA PORTE THE STATE OF TEXAS 9 9 COUNTY OF HARRIS 9 The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the day of , 2010, with the following members present, to wit: Ed Emmert EI Franco Lee Sylvia R. Garcia Steve Radack Jerry Eversole County Judge Commissioner, Precinct No. I Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 And the following members absent, to-wit other business, the following was transacted: , constituting a quorum, when among ORDER AUTHORIZING AN AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE Commissioner introduced an order and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, carrying with it the adoption of the order, prevailed by the following vote: Yes No Abstain Judge Emmert 0 0 0 Comm. Lee 0 0 0 Comm. Garcia 0 0 0 Comm. Radack 0 0 0 Comm. Eversole 0 0 0 The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: WHEREAS, the City has elected to participate in the Harris County Consolidated Region (HCCR) Application for Hurricane Ike Disaster Community Development Block Grant (CDBG) funds. These funds will be used to address unmet needs in housing, infrastructure, and economic development damages caused by Hurricane Ike and to mitigate future disaster events. Per Federal statute, a portion of funding must benefit low-income residents; and WHEREAS, the city hereby expresses its intent to seek formal approval of its governing body to participate under the HCCR CDBG Disaster Recovery program by executing a Memorandum of Understanding to the County; and WHEREAS, the County is willing to cooperate with the City in the development and implementation of the City's Disaster Recovery project(s) under the Disaster Community Development Block Grant Program; and WHEREAS, the County will allocate a proportion of Hurricane Ike Disaster Community Development Block Grant funding to the City based on a Method of Distribution established by the County for eligible project(s). NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS THAT: David B. Turkel, Director of the Harris County Community Services Department is hereby authorized to execute for and on behalf of Harris County, an Agreement between Harris County, and the City of La Porte, in the Harris County Consolidated Region (HCCR) Application for Hurricane Ike Disaster Community Development Block Grant (CDBG) funds which Agreement is hereby referred to and made a part hereof for all purposes as though fully set out herein. E REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Mav 10.2010 Budl!et Requested By: n T .add Source of Funds: Department: Fire Deputmellt Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Contract Amount Requested: Exhibits: Ordinance Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION Fire Department is asking Council to approve contract with Harris County Flood Control to allow fire Department to use building purchased by HCFCD for drill sites. This will allow fire department personnel to train in buildings in the surrounding areas to improve their skills in search and rescue, forcible entry and ventilation techniques. These buildings have been purchased and are scheduled to be demolished prier to fire department use, thus providing a training opportunity at no cost to the city. Action Required bv Council: Give approval for fire department to have contract with Harris County Flood Control district to used purchased building for fire training. Aooroved for City Council Al!enda Ron Bottoms, City Manager Date J/i-~ ORDINANCE NO. 2010- 3d. Y lc AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY FLOOD CONTROL DISTRICT, FOR USE OF HARRIS COUNTY FLOOD CONTROL DISTRICT PROPERTY FOR FIRE SAFETY TRAINING EXERCISES, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The city Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. The Fire Marshal is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this ATTEST: vfYl~L tl 4~ Martha A. Gillett City Secretary APPROVED: ~kr~ Cl k . Askins Assistant City Attorney / r;JI- day of '1n~ , 2010. By: 2 F'" REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested May 10, 2010 Requested By: Clark Askms ~ _A ~.. ... . Appropriation Source of Funds: Department: Legal Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Ordinance Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Because of noise/vibration disturbances caused to residents of south La Porte by operations at the Port of Houston Authority Bayport complex, the City has been asked by citizens to enforce applicable regulations under state law and city ordinances governing noise nuisances. Texas Penal Code Section 42.01(5) makes it a misdemeanor for a person to make an "unreasonable noise in a public place other than a sport shooting range.. .or in or near a private residence that he has no right to occupy". For purposes of this regulation the Penal Code states that a noise is "presumed to be unreasonable if the noise exceeds a decibel level of 85 after the person making the noise receives notice from a magistrate or peace officer that the noise is a public nuisance". The term "person" is defined to include a corporation or an association. In addition, the City also has a noise regulation ordinance codified in Chapter 34 of the Code of Ordinances, which in the case of residential (and non-residential) facilities affected by noise nuisances, carries a lower decibel threshold than the Penal Code. The La Porte Police Department has traditionally cited noise violators under either one of these regulations, at its discretion. Due to the fact that the Port of Houston's operations are located to the south of the city's boundary line, the city attorney's office is recommending that the city bolster its noise ordinance (Chapter 34 of the City Code) by declaring that the ordinance is intended to apply in -and therefore regulate - areas outside of the city limits up to 5000 feet. Texas Local Government Code Sec. 217.042 provides that "the municipality may define and prohibit any nuisance within the limits of the municipality and within 5000 feet outside city limits". One interpretation of Local Government Code Sec. 217.042, based on its wording, is that it is only necessary to define the nuisance, and authority to regulate nuisances 5000 feet outside of city limits is automatic, and that the recommended change to our ordinance would therefore be unnecessary. However, to be on the safe side, and to avoid having to argue this point in court, our office is recommending this amendment. n ordinance amending the city's noise prohibition ordinance. 5K0 Date ORDINANCE NO. 2010 3~ Y 7 AN ORDINANCE AMENDING CHAPTER 34 "ENVIRONMENT" OF THE CODE OF ORDINANCES OF THE CITY OF LA PORTE BY AMENDING ARTICLE III "NOISE POLLUTION" TO DEFINE AND PROHIBIT NOISE NUISANCES 5000 FEET OUTSIDE OF LA PORTE CORPORATE LIMITS, AS ALLOWED BY SECTION 217.042 OF THE TEXAS LOCAL GOVERNMENT CODE; PROVIDING A PENALTY OF $2000 FOR EACH OFFENSE; PROVIDING A SEVERABILITY CLAUSE; CONTAINING AN OPEN MEETINGS CLAUSE; PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF; AND PROVIDING AN EFFECTIVE DATE HEREOF; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. Chapter 34 "Environment", Article III "Noise Pollution" of the Code of Ordinances of the City of La Porte, Texas is hereby amended by amending Section 34-93 "General Prohibition", which section shall read as follows: "Sec. 34-93. General prohibition. (a) It shall be unlawful for any person to make, assist in making, continue, cause to be made or continued or permit the continuance of any sound, noise, or vibration in the territorial limits of the city or within the area immediately adjacent and contiguous to the city limits and extending for a distance of 5000 feet beyond the city limits, which either exceeds the maximum permitted levels specified in section 34-92, of this article, or for the purposes of subsection (b), otherwise unreasonably disturbs, injures or endangers the comfort, repose, health, peace or safety of others within the limits of the city. Any sound, noise, or vibration in violation of this article is declared to be a common and public nuisance. (b) It shall be unlawful for any person to make, continue, or cause to be made or continued any loud, unnecessary, or unusual sound, noise, or vibration that annoys, disturbs, injures, or endangers the comfort, repose, health, peace, or safety of others. In determining whether a sound, noise, or vibration is loud, unnecessary, or unusual, the following factors shall be considered: time of day; proximity to residential structures; whether the noise is recurrent, intermittent, or constant; the volume and intensity; whether the sound, noise, or vibration has been enhanced in volume or range by any type of electronic or mechanical means; and whether the sound, noise, or vibration is subject to being controlled without unreasonable effort or expense to the creator thereof. (c) The acts enumerated in the following sections of this article, among others, are declared to be sound nuisances which are unreasonably loud, irritating, disturbing, or excessive sounds in violation ofthis chapter, but such enumeration shall not be deemed to be exclusive." Section 2. Any person who violates any provision of this ordinance shall be guilty of a class C misdemeanor and upon conviction shall be fined an amount not exceeding $2000.00. Section 3. Open Meetings. 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 4. Severability. Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair or invalidate the remaining portions thereof; but as to such remaining portion or portions, the same shall be and remain in full force and effect and to this end the provisions of this ordinance are declared to be severable. Section 5. Effective Date. This Ordinance shall be effective fourteen (14) days after its passage and approval. The City Secretary shall give notice of the passage of this ordinance by causing the caption hereof to be published in the official newspaper of the City of La Porte at least once within ten (10) days after the passage of this ordinance, in accordance with the provisions of Chapter 52, Texas Local Government Code, and the City of La Porte Charter. PASSED AND APPROVED on this the / cjf- illIy of ~ 2010. By: ATTEST: ~~ d. JdiI1/ Mart a A. Gillett City Secretary APPROVED: Cll/d-'1 ~ Assistant City Attorney 7 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: May 10,2010 Budl!et Requested By: Fiscal Affairs Source of Funds: Department: Administration Account Number: Report: Resolution: Ordinance: Amount Budgeted: Exhibits: Financial transactions of the plaza Amount Requested: Exhibits: Certification of transfer of funds Budgeted Item: YES NO Exhibits IIRS UiIIillK IllfQrmatiQIl SUMMARY & RECOMMENDATION The Fiscal Affairs Committee has met several times to address a citizen's concerns regarding the Town Plaza. Knox and I have answered all of the questions that have been raised, but I understand that the committee would like to professionally review the following two items: I) The City's tinancial transactions regarding the closing of the "triangle" property and the $150,000 loan to Garson Silvers, that was subsequently paid otT. 2) The architects (URS) billing regarding the Town Plaza, specitically regarding their reimbursable submittal. I have attached Knox's summary and answers regarding the tinancial transactions. Also attached is Michael Dolby's certitication of the transfer offunds discussed in Knox's summary. I have also attached information regarding the URS billing question, that includes a letter ti'om URS that summarizes their billing. Due to the size of the information, we've also placed a copy of all of the backup for URS's billing in your offices for your review. Action Required bv Council: Consider approval or other action authorizing the Fiscal Affairs Committee to develop a scope of work for a review of the tin a ransactions of the Town Plaza Project and a proposed budget. 0J~ Date askins & askins P.c. ATTORNEYS and COUNSELORS Knox W. Askins Dark T. Askins May 4, 2010 Hon. Mayor & City Council City of La Porte City Hall La Porte, Texas Re: The Financial Transactions in Connection with the Real Estate Purchase and the Real Estate Mortgage, with East A Developments, LP, on the Town Plaza Project. Gentlemen: On October 29, 2008, Stewart Title company in Houston closed the purchase by the La Porte Economic Development corporation, of all of Block 199, Town of La Porte, Harris County, Texas, for a consideration of $150,000.00. A copy of the deed from La Porte 5 Points properties, LP, to the La Porte Economic Development corporation, conveying all of Block 199, Town of La porte, Harris County, Texas, and the stewart Title Company closing statement, are attached hereto as Exhibit "A-1". In addition, on the same date, Stewart Title Company closed a $150,000.00 loan from the La Porte Economic Development Corporation to East A Development, LP. A copy of the $150,000.00 promissory note is attached to this letter as Exhibit "A-2". A copy of the Deed of Trust mortgage from East A Development, LP, to the La Porte Economic Development corporation, is attached as Exhibit "B". East A Development, LP, used the proceeds of the $150,000.00 loan from La Porte Economic Development corporation, to purchase from Wade Cooper, the North 17' of Lot 9, and all of Lots 8, 7 and 6, in Block 198, Town of La porte, Harris County, Texas. A copy of the stewart Title company closing statement, and a copy of the General Warranty Deed with Vendor's Lien from Wade Cooper to East A Development, LP, acknowledging the $150,000.00 note payable to La Porte Economic Development corporation are attached as Exhibit "C". 702 W. Fairmont Parkway, P.O. Box 1218, La Porte, TX 77572-1218 281.471.1887 phone. 281.471.2047 fax . knoxaskins@comcast.net . ctaskins@swbel1.net Hon. Mayor & City council May 4, 2010 page 2 Attached to this letter as Exhibit RDR, is my escrow instruction letter of March 12, 2009, to Stewart Title Company, which placed the La Porte Economic Development Corporation's Release of Lien in escrow, for a refinance closing. Also attached were wiring instructions to the La Porte General Operating Account, for remittance of the funds after Closing. This loan repayment was made by East A Development, LP, by wire from the Stewart Title Company Escrow Account. Please let me know if I may be of further assistance. Yours very truly, Ck4: Knox w. Ask~ns City Attorney City of La Porte KWA: sw Enclosures No v. 11. 2 0 0 8 11: 0 5 AM ! > . .... No, 0505 P. 2 20080542458 '1~I2Q08 Rn. ~2.9D ~ ) NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AND INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY ~UMBER OR YOUR DRIVER'S LICENSE NUMBER. @Jptttal Blarrantlllltth THE STATE OF TEXAS COUNTY OF HARRIS ~ ~ ~ Know All Men By These Presents: That LA PORTE 6 POINTS PROPERTIES, L.P., a Texas limited partnership, eGrantors''t whether one or more), for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration to Grantors this day paid by LA I ~ PORTE ECONOMIC DEVELOPMENT CORPORATION, a Texas non~profit corporation ("Grantees" I whether one or more), of Harris County, Texas, the receipt and a~ciency of which is bereby acknowledged, have GRANTED7 BARGAINED, SOLD and CONVEYED and by tbese presents do GRANT, BARGAIN, SELL and CONVEY unto Grantees all of the real and personal property situated in Harris County, Texas, described more particularly in Exhibit "A", attached hereto and incorporated by reference. This conveyance is executed by Grantors and accepted by Grantees subject to (i) taxes and assessments for the year 2008 and later, and any taxes and assessments which may arise from the change in land ownership or usage; ('rl) any matters which a survey or physical inspection would disclose; (iii) theprdinances, zoning, restrictions, and similar regulations imposed by the City of La Porte or any other federal, state, or municipal authority of competent jurisdiction; and (iv) all matters ofiecord in the office of the County Clerk of Ranis County, Texas, to the extent the same are valid, subsisting, and affect the property in' question. ( collectiv:elys the" PermittedExceptionstl). Page -1.. . ~f/lJ,fks/b Git. - ___en caO\'1~ / 21,A/BI~ V .. ~~~~ EXHIBIT I A-' Nov.ll. 2008 11:05AM No. 0505 P. 3 THE IMPROVEMENTS, IF ANY, LOCATED UPON THE SUBJECT PROPERTY ARE CONVEYED AND ACCEPTED ''AS 1S", "WHERE IS", 'WITH ALL FAULTSII, IN THEIR PRESENT CONDITION, OF ANY KlND, WHETHER EXPRESS OR IMPLIED, OTHER THAN THE EXPRESS WARRANTIES OF TITLE MADE HEREIN. THE WARRANTIES OF HABITABILITY, SUITABILITY, TENABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER WARRANTIES WHATSOEVER CONTMNEDINORCREATEDBYTHE~BUS~SANDCOMMERCE CODE, TEXAS PROPERTY CODE, UNDER THE LAWS OF THE STATE OF . TEXAS, OR OTHERWISE, ARE EXPRESSLY DISCLAIMED. GRANTEE ACCEPTS ALL LIABILITY FOR ALL COSTS, LIABILITY, AND CLAIMS RELATING TO, OR RESULTING FROM, THE CONDITION OF THE SUBJECT PROPERTY, INCLUDING ANY UNDERGROUND STORAGE TANKS OR ENVIRONMENTAL HAZARDS THEREON. TO HAVE AND TO HOLD the Subject Property, together with all and singular the rights and appurtenances thereto in anywise belonging unto Gra:ptees, their heirs, administrators, successors and a.ssigns,. forever; and Grantors : do hereby bind themselves, and their heirs, administrators, successors and assigns, to WARRANT AND FOREVERDEFBND, all and singular, the Subject Property unto Grantees, and their heirs, administrators, successors and assigns, against every person whomsoever lawfully claiming or to claim the ~ame or any part thereof, by, through or under Grantors, but not otherwise, and subject to the Permitted Exceptions and taxes for the current year and subsequent assessments for prior years due to change in land usage or ownership. Page -2- Nov. 11. 2008 11: 06 AM No. 0505 p, 4 EXECUTED this th~October. 2008. LA PORTE 5 POINTS PROPERTIES, L.P. :JA;1/ By: GSBS La Porte Management, L.L.C" ita General_~~er ~_ By: jC;j.~~ Garson Silvers, . Manager II Grantors'l THE STATE OF TEXAS ~ COUNTY OF HARRIS ~ /J ~ This instrument was acknowledged before me on thidff.. d~Y of October, 2008, by Garson Silvers, as manager of GSBS La Porte Management, L.L.C., general partner of LA PORTE 5 POINTS PROPERTIES, L.P. 'AM'~ JgA~N LUJlN Nlll~rv.h"bH"Il"i:'!lfflK" M~ flp 11111 All ~1111' J~ "~l '0 t ," {"I ADDRESS OF GRANTEES: 604 W. Fairmont Parkway La Porte, Texas 77571 H:\BID\Clilll:l~ Jijca\:E.ct A Dnelopmea18 L1'\3S0 Aarnmml wiUl th. 0lt.Y aCLa Pon.'\x8WDl88.wpd\lDllID8195319 Page -3- No v. ': 1. 2008 11: 06 AM No, 0505 p, 5 SPECIAL WARRANT!' DEED ExHIBIT "A" DESCRIPTION OF REAL PROPERTY TRACT 1: All of Lots 1 through 9 of Block 199 of the TOWN OF LA PORTE, as recorded in the p Map Records of Harria County, Texas Volume 8, Page 16 TRACT 2: All of Seller's right. title and interest in and to the abutting 100' wide public right -of-way known as San Jacinto Street Ptf.~Sll.LOIU8lO'l1E~ lEAl AlI'f~~6lII~~~':..G!lIeUll~ElJl.("FaEJAl.UW. PROI'I!ItT8ll&lfC._"""''' TtlESTATEOF'TI!XJ\S couNT'fOF )WtA.lS S8fa,cUI'!II~I"'II'ttN It.dywd,~iK~~=::=Ii;kI_tL_PIllDOll'IlI\llll m,.t",",~ae.*.n_}- CaatJ, T_1Il OCT 3 1 2DD8 e~~~ CotJNN CLERK ~ 14AR"lS cOUH1Y. TEXAS i r ":XJO ~ <:ng ~~. .." p::c, . n-t ~ -r ~~ .~ fT1 ~~ 1~\'\ :I 0 ~::c x ~ - CIl CI1 al c::II c:D o ~ "" - - '- , .' Page -4w 1 _ []FHA 4. [ lVA 2. 5. B. TYPE OF LOAN lFMHA 3_ [lCONV. UNINS. l CONY. INS. 6. FILE NUMBER: 7. LOAN NUMBER: j 08108646 ------. 8. MTG. INS. CASE NO. : C.NOTE: This form is furnished 10 give you a sallemenl of actual sel.tlemenl cOSIS. AmounlS paid 10 and by Ihe settle men! agenl are shown. lIems marked ("p.o.c..) were paid outside the closing: they arc shown here for Information purposes and are not included in ~e totals. D. NAME OP BORROWER: LA PORTE ECONOMIC DEVELOPMENT CORPORATION ADDRESS: i ---_. I E. NAME OP SELLER: LA PORTE 5 POINTS PROPERTIES, L.P. l I ADDRESS: SELLER TIN: ------- F. NAME OF LENDER: ADDRESS: G.PROPERTY LOCATION: ALL OF BLK 199, TOWN OF LAPORTE, VOL. 8 PG 16 i i MRHCT I i BROADWAY AND A & SAN JACINTO TX _m_u H. SETTLEMENT AGENT: STEWART TITLE COMPANY CLOSER: PAM LESTER PHONE NUMBER: (713) 688-4300 ADDRESS: 9434 OLD KATY ROAD, SUITE 230 HOUSTON TEXAS 77055 SETTLEMENT AGENT TIN: 74-0923770 PLACE OF SETTLEMENT: STEWART TITLE PHONE NUMBER: (713) 688-4300 II.SETTLEMENT DATE ADDRESS: 1900 NORTH LOOP WEST, STE 650 Closing date: 10/29/08 HOUSTON TEXAS 77018 Proration date: 10/29/08 J. SUMMARY OF BORROWER'S TRANSACTION K. SUMMARY OF SELLER'S TRANSACTION 100. GROSS AMOUNT DUE FROM BORROWER; 400. GROSS AMOUNT DUE TO SELLER: 101. Contract sales price 150 000.00 401. Contract sales orice 150 000.00 102. PersonalPrDpeny 402. Personal property 103. Settlement clum!:es 10 borrower(line 1400) 3 749.00 403. . I 104. 404. . . 105. 405. -- ---. i Adjustments for ilems paid by seller in advance: Adjustments for items paid for seller in advance: 106. City/town ta"es ..- 10 --' 406. City/town taxes 10 107. County ta"es 407. County taxes -- to to 108. Assessments to 408. Assessments to 109. Maintenance to 409. Maintenance to 110. SchoollTaxes 10 410. SchoollTaxes 10 Ill. 411. 112. .- 412. i 120. GROSS AMOUNT DUE FROM BORROWER; 153 749.00 420. GROSS AMOUNT DUE TO SELLER: 150 000.00 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER: 500. REDUCTIONS IN AMOUNT DUE TO SELLER: 201. DellOsit or earnest money 501. Excess deoosit(see instrUctions) 202. Princioal amount of new loan(s) 502. Settlement charl!:es 10 seller(1ine 1400) --- 1,734.95 203. E"lstim' laao( s) taken subject to 503. E"isting loan(s) taken subject 10 204. Commitment Fee 504. Payoff of firsl mortltalZe loan 205. 50S. Payoff of second mort2a2e loan 206. 506. I 207. 507. .~.m-J 208. 508. 209. 509. Adjustments for items unpaid by seller: AdiustmenlS for items unpaid by seller: 210. City/lOwn ta"es 10 5 10. City/town taxes to 211. County taxes 01/01/08 10 10/29/08 324.44 5 11. County taxes 01/01/08 10 10/Z9/08 324.44 212. AssessmenlS 10 512. Assessments to 213. SchoollTa"es to 513. SchoollTa"es 10 214. 514. Maintenance to w__. 215. 515. ...-- "-_._------- -----. 216. 516. 217. 517. 218. 518. 219. 519. "- 220. TOTAL PAID BY/FOR BORROWER: 520. TOTAL REDUCTION IN AMOUNT: 324.44 2 059.39 300. CASH AT SETTLEMENT FROMITO BORROWER: 600. CASH AT SETTLEMENT TO/FROM SELLER: 301. Gross amount due from borrower(line 120) 153 749.00 60 1. Gross amount due 10 sellenllne 420) I 150 000.00 302. Less amounts oaid bY/for borrowerOine 220) 324.44 602. Less total reductions in amounl due seller(line.520) I 2,059.39 303. CASH rx FROMI [ TOI BORROWER: 153 4Z4.56 603. CASH [X TOl r FROMI SELLF..R: 147,940.61 .~ OMB No. 2502-02651 A. U.S.DEPARTMENT OF HOUSING AND URBAN OEVELOPMENT FH.. 08108646 L. SETTLEMENT CHARGES PAID FROM PAID FROM ! BORROWER'S SELLER'S FUNDS FUNDS 700. TOTAL SALES/BROKER'S COMMISION Based on $ @ %= AT SETTLEMENT AT SETfLEMENT Division of Commission (\ine 700) as follows: i "- -- '-j 701. $ to "" 702.$ to ---1 703. Commission paid at settlement -- 704. I 800. ITEMS PAYABLE IN CONNECTION WITH LOAN. I 801. Loan Ori"inatlon fee % : 802. Loan Discount ,.. I ." I 803. Appraisal fee to -_.__.~ _. I 804. Credit ReDO" to I --I 80~. Lender's insoection fee to ..- 806. Mortlrue Insuranee application fee to 807. Auumption Fee to 808. Commitment Fee to -- 809. FNMA Processinll Fee to - 810. Pictures to 811. to 812. to ! 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE. 90 I. Interest from to <<P$ /day -- 902. Morl2ue insurance premium for mo. to 903. Hazard insurance premium for yrs. to ., 904. Flood Insurance yrs. to 90S. 1000. RESERVES DEPOSITED WTI'H LENDER 1001. Hazard Insurance mo.@$ per mo. I --- 1002. MOrtlralle insurance mo.@$ per mo. -.. I 1003. City orooenv taxes mo.@$ per mo. I 1004. County property laxes mo.@$ per mo. ! ._._~- 1005. Annual assessments (Malnl.) mo.@$ per mo. 1006. School Prooertv Taxes mo.@$ per mo. 1007. Water Disl. Prop. T;:^ mo.@$ per mo. .. -- ~ J'lood Ins\,;n,nce mo.@$ per mo. -- -- 1009. A22reUle Accounlinll Adjustmenl 1100. TITLE CHARGES: 1101. Settlemenl or closing fee to 1102. AbstracI or thle search to ""- 1103. Tille examination to .. ~ 1104. Title insurance binder to 1105. Document preparation to ~-_._~ 1106. Notary fee 10 1107. Attorney's fee to to (includes above items No.: i 1108. Title Insurance 50% to RICHARD A. CROW 10 STEWART TITLE 166.50 1.110.00 (includes above items No.: ) ,-- 1109. Lender"s coverage $ 1110. Owner's coverage 150,000.00 $ 1 ,276.50 Sur Del 1111. Escrow fee to RICHARD A. CROW P. C. 300.00 -- 300.00 1112. Restriclions to 1113. Messenger Fee/Document DelIvery to RICHARD A. CROW P. C. 10.00 ...- 10.00 1114. INSPECTION to N'EDRA SMITH 250.00 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. Recordlnll fees: Deed $ 25.00 Mrl2 $ ReI. $ 25.00 1202. City/county Ia,,/stamps: Deed $ Mrt2$ 1203. State laX/slamos: Deed $ Mrlg $ 1204. Tal< certificates 10 STEWART TITLE 64.95 1205. 10 1206. to 1300. ADDITIONAL SETTLEMENT CHARGES 1301. Survey REIMBURSEMENT to GARSON SILVERS 3.247.50 I 1302. Pesl insDection to 1303. 10 I 1304. to 130S. to 1400. TOTAL SETTLEMENT CHARGES (entered on lines 103, Section I and ~O2, Section 1<) :5 749.00 1 734.95 CERTIFICATION: I have carefully reviewed the HUD-I Seltlemen. Statement and to Ihe beSI of my Irnowledge and belief. it is a troe and accurate statement of all receipts and disbursements made on In accounl: or by me in this transaction. 1 further certify that I have received a. copy of HUD-l Settlement Sratement. Settlement Agent Dale Borrowers The HUD-I Settlement Stalement which accordance with this statement. SEE PAGE 3 FOR SIGNATURES, IF APPLICABLE WARNING: It is a crime to knowingly make follse stalemenlS to the United Slates on this or any other similar form. Penalties upon conviction can include a fine and imprlsonmenl. For details see: Tille 18: U.S. Code Section 1001 and Section 1010. Page 3 to be affixed to HUD-1 Settlement Statement File No.: 08108646 CERTIFICA TION Seller's and Purchaser's signature hereon acknowledges his/their approval of tax prorations and signifies their understanding that prorations were based on taxes for the preceding year or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. The parties have read and understood the above sentences, and recognize that the above recitations herein are material and important. The parties agree to these statements, and recognize Title Company is relying on these recitations in closing this transaction. Title Company has deposited the earnest money that it has received in a demand deposit account that is federally insured to the maximum extent permitted by law. Demand deposit accounts are non-interest bearing pursuant to federal law, but offer immediately available funds for withdrawal after a check has cleared. Title Company may receive other benefits from the financial institution where the funds are deposited. Based upon the deposit of escrow funds in demand deposit accounts and other relationships with the financial institution. Title Company is eligible to participate in a program offered by the financial institution whereby the title Company may (i) receive favorable loan terms and earn income from the Investment of loan proceeds and (ii) receive other benefits offered by the financiel institution. I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. Purchaser(s) /Borrower(s) I certify and acknowledge that I have received a copy have read and understood the disclosure state above. Seller(s) Pu rch aserls) /Borrow ere s) Seller(s) To the best of my knowledge, the HUD-1 Settlement Statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the undersigne rt of the lement of this transaction. c;/ WARNING: It is a crime to knowingly make false statements form. Penalties upon conviction can include U.S. Code Section 1001 and Section 1010. the United States on this or any other similar ine and imprisonment. For details see: Title 18 PROMISSORY NOTE This Promissory Note (this "Note") is made by East A Developments, L.P., as maker, under the terms and conditions as follows: Article I DEFINITIONS For purposes of this Note, the following defined terms shall have the meanings set forth in this Article I: 1.1 "Borrower'means East A Developments, L.P., a Texas limited partnership. 1.2 "Borrower's Mailing Address" means 1001 Dsener, Houston, Harris County, Texas 77007. 1.3 "Lender' means La Porte Economic Development Corporation, a Texas non-profit corporation. 1.4 "Place for Payment' means 604 W. Fairmont Parkway, La Porte, Texas 77571. 1.5 "Principal Amounf' means One Hundred Fifty Thousand Dollars and No Cents ($150,000.00). 1.6 "Annual Interest Rate" means Five Percent (5.00%) per year. 1. 7 "Maturity Dati' means the Prst day ofthe month following six (6) months after the Effective Date. 1.8 "PSA" means that certain Purchase and Sale Agreement by and between Lender and Borrower. The PSA is hereby incorporated by reference. 1.9 "Effective Date" means Octobe~8 Article n TERMS OF PAYMENT 2.1 Borrower promises to pay to the order of Lender.the Principal Amount plus interest, compounding annually, at the Annual Interest Rate, the same being due and payable in equal mo:p.thly installments of Six Hundred Twenty-Five Dollars and No Cents ($625.09), on the first day of each month, beginning the first day of the calendar month after the .Effective Date, and continuing until the Maturity Date, when the entire amount of remaining principal and accrued, unpaid interest will be payable in full. J EXHIBIT A-~ Page -1- 2.2 Payments will be applied :first to accrued interest and the remainder to reduction of the Principal Amount. 2.3 This Note is payable at the Place for Payment. 2.4 All unpaid amounts are due by the Maturity Date, at which time they will reach maturity. Mter maturity, Borrower promises to pay any unpaid principal balance plus interest at the Annual Interest Rate. 2.5 Borrower may prepay this Note in any amount at any time before the Maturity Date without penalty or premium. 2.6 This Note is secured by a deed of trust of even date herewith from Borrower to Knox Askins, trustee, (the "Deed of Trust") which covers the following real property (such real p~operty being the "Collateral Security"): All of Lots 6, 7, 8, 9, 10, and the West fifty-six and four tenths (56.4) feet of Lots 11, 12 and 13, in Block One Hundred Ninety-Eight (198) of TOWN OF LA PORTE, an addition in Harris County, Texas, according to the map or plat thereof recorded in Volume 8, Page 16 of the Map Records of Harris County, Texas. 2.7 If Lender is obligated to indemnify Borrower under the terms of the PSA or if Lender defaults on the PSA, Borrower may elect to apply the amounts owed under the PSA to the outstanding, unpaid principal and accrued, unpaid interest, and such sums will be reduced by that amount. Article ill DEFAULT 3.1 An "Event of Defaulf' exists under this Note if: 3.1.1 Borrower fails to timely payor perform any obligation or covenant in this Note; 3.1.2 any warranty, C()venant, or representation in this Note is materially false when made; 3.1.3 a receiver is appointed for Borrower or the Collateral Security; 3.1.4 any Collateral Security is assigned for the benefit of creditors; 3.1.5 a bankruptcy or insolvency proceeding is commenced by Borrower and continues for at least sixty (60) days; or 3.1.6 Borrower is dissolved, begins to wind up its affairs, or is authorized to dissolve or wind up its affairs by its governing body or persons. 3.2 If an Event of Default exists under this Note or the Deed of Trust, Lender may declare the unpaid principal balance, earned interest, and any other amounts owed on the Note immediately due. Page -2- 3.3 IT an Event of Default exists under this Npte, before exercising any of Lender's remedies under this Note or the Deed of Trust, Lender shall first give Borrower written notice of default at Borrower's Mailing Address and Borrower will have ten (10) days after such notice is received to cure the default. In the event that this Section 3.3 conflicts with any other provision in this Note, this Section 3.3 will control. Article IV MISCELLANEOUS 4.+ Interest on the debt evidenced by this Note will not e~ceed the maximum rate or amount of non usurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the Principal Amount or, if the Principal Amount has been paid, refunded. On any acceleration or required or permitted prepayment, any excess interest will be canceled automatically as of the acceleration or prepayment or, if the excess interest has already been paid, credited on the Principal Amount or, if the Principal Amount has been paid, refunded. This provision overrides any conflicting provisions in this Note and all other instruments concerning the debt. 4.2 Whenever a period of time in this Note is prescribed for action to be taken by Borrower, Borrower will be liable or responsible for, and there will be excluded from the computation of any corresponding deadline, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, government laws, regulations or restrictions or any other causes of any kind whatsoever which are beyond the reasonable control of Borrower. 4.3 The section and paragraph headings, titles and captions used in this Note, are for convenience only and do not limit or amplify the provisions hereof. 4.4 Lender and Borrower each acknowledge that he has participated in the drafting of this Note, that thi~ Note will not be construed against either party because it was the drafter, and that any rule of construction requiring that any provision ofthis Note be construed against a particular party because of that party's status as the drafter of the provision will be not be applicable to this Note. 4.5 When the context requires, singular nouns and pronouns include the plural. 4.6 This note will be construed under the laws of the State of';I'exas, without regard to choice.of-Iaw rules of any jurisdiction. To the maximum extent permitted by law, venue for all purposes will be the Harris County, Texas. Page -3- EXECUTED AND EFFECTIVE AS OF THE EFFECTIVE DATE. EAST A DEVELOPMENTS, L,P. By: GSDB Management, L.L.C., its General ::rtner . __ ~ / Br. ---/~ ~ Garson Silvers, Manager Page -4- ~1 i . f') ~ = r ,~ , j Ie . ," " {' " .2.o~56 101311280&. <!i"RPa,"'$J6.oo 'J NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. DEED OF TRUST THE STATE OF TEXAS ~ ~ Know All Men By These Presents: COUNTY OF HARRIS ~ cd~ THAT, this Deed of Trust ("Deed of Trust") is effective as of--Septembe:t,;{!l 2008 (the "Effective Date"), from EAST A DEVELOPMENTS, L.P., a Texas limited partnership (the "Grantor", whether one or more), to KNOX ASKINS, "TRUSTEE (the II Trustee"), for the benefit of the La Porte Economic Development Corporation, a Texas non-profit corporation (the "Beneficiary"); and ,d;? rW WHEREAS, Grantor has executed and delivered to Beneficiary that certain Note (as defined below) in conjunction with the execution of that certain Purchase and Sale Agreement by and between La Porte 5 Points Properties, L.P., Grantor and Bep.eficiary, dated October a. 2008 (the "PSA"); WHEREAS, Grantor and Beneficiary desire to secure payment of that Note with the Property described below; NOW, THEREFORE, in consideration ofthe sum of $10.00, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and CONVEY in trust unto Trustee, and his substitutes or successors, all of the following described property (the "Property'') situated in Harris County, Texas: ," All of Lots 6, 7, 8, 9, 10, and the West fifty-six and four tenths (56.4) feet of Lots 11, 12 and 13, in Block One Hundred Ninety-Eight (198) of TOWN OF LA PORTE, an addition in Harris County, Texas, according to the map or plat thereof recorded in Volume 8, Page 16 of the Map Records of Harris County, Texas. p TO HAVE AND TO HOLD the Property in trust unto Trustee, his successors in this trust and his assigns, forever, and Grantor does hereby" bind Grantor, his respective heirs,legal representatives, successors and assigns, to warrant and defend the Property to Trustee, his successors and assigns, forever, against the claim or claims, of all persons whomsoever claiming or to claim the same or any part thereof, ugh or under Grantor, but not otherwise, subject to the ~~.ng ,e~~tions: E:XHIBIT OFt: C/ L@cr )~}- 1:1 Page 1 21-A/RICHARD CROW ' ~ ST~,T TITLE COMPANY I ~. m ~ I J I ~ ~ j Ii ,. (i) any and all liens, encumbrances, reservations, restrictions, covenants, easements, rights of way, mineral interests and other matters, if any, of record in the County Clerk's Office of Harris County, Texas; (ii) all zoning, ordinances, regulations, restrictions, and other limitations imposed by any municipality with jurisdiction over the Property; and (ill) all matters which a survey and a physical inspection of the Property would reveal. If Grantor performs all the covenants and pays the Note . according to its terms, this Deed of Trust shall have no further effect, and Beneficiary shall promptly release it: Article I CONVEYANCE IN TRUST; PROMISSORY NOTE 1.1 Securing Payment In Trust. This conveyance is made IN TRUST to secure payment of that certain Promissory Note of even date herewith, in the principal amount of $150,000.00, executed by Grantor, as maker, and payable to the order of . Beneficiary, bearing interest and being payable as therein provided (the IINotell). To the extent that this Deed of Trust conflicts with the PSA, the PSA will control. The Agreement is hereby incorporated into this Deed of Trust by reference. 1.2 Payment of Note. The Note shall be payable at the address specified in the Note until Beneficiary gives written notice to Grantor designating another place of payment. 1.3 Application of Payments. All payments received by Beneficiary, however designated, shall be applied to the principal or interest of the Note or to expenses provided for in this Deed of Trust, or any combination of the foregoing, as directed by Beneficiary in accordance with the provisions of th~ Note. Article II GRANTOR'S OBLIGATIONS 2.1 General Obligations. Grantor shall: 2.1.1 keep the property in good repair and condition; 2.1.2 pay all taxes and assessments on th~'property when due; and 2.1.3 preserve the lien's priority as it is established in this Deed of Trust; 2.2 ReQuired Insurance Policy. Grantor shall maintain, in a form acceptable to Beneficiary, an insurance policy that: 2.2.1 covers all improvements for their full insurable value as determined when the policy is issued and renewed, unless Beneficiary approves a smaller amount in writing; 2.2.2 contains an 80% coinsurance clause; 2.2.3 provides fire and extended coverage, including windstorm coverage; 2.2.4 protects Beneficiary with a standard mort~age clause; and 2.2.5 provides flood insurance at any time the property is in a flood hazard area. Page 2 ~. .~ (:I r I ~ I . . 2.3 Insurance Policy Covenants. Grantor shall do the following things related to the above-mentioned insurance policy: 2.3.1 comply at all times with the requirements of the 80% coinsurance clause; 2.3.2 deliver the insurance policy to Benefic~ary and deliver renewals to Beneficiary at least ten days before expiration; and 2.3.3 keep any buildings occupied as required by the insurance policy. 2.4 Prior Liens. If this Deed of Trust is not a first lien, Grantor shall pay all prior lien notes that. Grantor is personally liable to pay and abide by all prior lien instruments. 2.5 Subsequent Liens. Grantor may obtain other liens or security interests securing the lending of money for the construction, affixation, creation, purchase, or addition of improvements of any type or nature to the Property (including, but not limited to, so called construction loans), and such other liens shall be superior to this Deed of Trust. Article III BENEFICIARY'S RIGHTS 3.1 Successor Trustees. Beneficiary may appoint in writing a substitute or successor trustee, succeeding to all rights and responsibilities of Trustee, provided that Beneficiary does so in writing, provides a copy of the same to Grantor promptly upon doing so, and records the same in the Real Property Records of Harris County, Texas. 3.2 Application of Insurance Proceeds. Beneficiary may apply any proceeds received under the insurance policy either to reduce the Note or to repair or replace damaged or destroyed improvements covered by the policy. ' 3.3 Beneficiary Performance of Obligations. If Grantor fails to perform any of Grantor's obligations, Beneficiary may perform those obligations and be reimbursed by Grantor on demand for any sums so paid, including attorney's fees, plus interest' on those sums from the dates of payment at the rate stated in the Note for matured, unpaid amounts. The sum to be reimbursed shall be secured by this Deed of Trust. 3.4 Grantor Default. If Grantor defaults on the Note or fails to perform any of Grantor's obligations and the default continues after Beneficiary gives Grantor notice of the default and the time within which it must be cured, as may be required by law or by written agreement, then 13eneficiary may: 3.4.1 declare the unpaid principal balance and earned interest on the Note immediately due; 3.4.2 request Trustee to foreclose'this lien, in which case Beneficiary or Beneficiary's agent shall give notice of the foreclosure sale as provided by the Texas Property Code as then amended; and Page 3 , RECORDER'S~B.1o~~~enl'wa' Al the. lime Qf recordatlotl. Ui~ t 'ho taphiC ~~;~~c~~o~~c::::: f: :R:g~~lil ~~:~lt ~:~nr~~~ ~'pnt$enllt ~ tlffl. the lI'lStJUI1Ient WlII flied and recorded. ~ '" I I = i , I 3.4.3 purchase the property at any foreclosure sale by offering the highest bid and then have the bid credited on the Note. Article IV TRUSTEE'S DUTIES 4.1 Foreclosure Duties. If requested by Beneficiary to foreclose this lien, Trustee shall: 4.1.1 either personally or by agent give notice of the foreclosure sale as . required by the Texas Property Code as then amended; and 4.1.2 sell and convey all or part of the property to the highest bidder for cash with a general warranty binding Grantor, subject to prior liens and to other exceptions to conveyance and warranty. 4.2 Foreclosure Sale Proceeds. From the proceeds of such sale, Trustee shall pay, in this order: 4.2.1 first, expenses of foreclosure; 4.2.2 second, to Beneficiary, the full amount of principal, interest, attorney's fees, and other charges due and unpaid; 4.2.3 third, any amounts required by law to be paid before payment to Grantor; and 4.2.4 fourth, to Grantor, any balance. Article V GENERAL PROVISIONS 5.1 Surrender of Possession. If any ofthe property is sold und~r this Deed of Trust, Grantor shall immeQiately surrender possession to the purchaser. If Grantor fails to do so, Grantor shall become a tenant at sufferance of the purchaser, subject to an action for forcible detainer. 5.2 Recitals. Recitals in any Trustee's deed conveying the property will be presumed to be true. 5.3 Election of Remedies. Proceeding under this Deed of Trust, filing suit for foreclosure, or pursuing any other remedy will not constitute an election of remedies. 5.4 Superior Lien. Subject to the terms ofthis Deed of Trust, this lien shall remain superior to liens later created even if the time of payment of all or part of the Note is extended or part of the property is released. 5.5 Application of Payments. If any portion of the Note cannot be lawfully secured by this Deed of Trust, payments shall be applied first to discharge that portion. Page 4 I ~ , '~ ~ . Ai I 5.6 Condemnation. Grantor assigns to Beneficiary all sums payable to or received by Grantor from condemnation of all or part of the property, from private sale in lieu of condemnationt and from damages caused by public works or construction on or near the property. Mter deducting any expenses incurred, including attorney's feest Beneficiary may release any remaining sums to Grantor or apply such sums to reduce the Note. Beneficiary shall not be liable for failure to collect or to exercise diligence in collecting any such sums. 5.7 Usury. Interest on the debt secured by this Deed of Trust shall not exceed the maximum. amount of non usurious interest that may be contracted fort taken, reserved, charged, or received under law; any interest in excess of that maximum. amount shall be credited on the principal of the debt ort if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess shall be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides other provisions in this and all other instruments concerning the debt. 5.8 Context. When the context requires, singular nouns and pronouns include the plural. All pronouns include the male, female and neuter genders. 5.9 Assignment. This Deed of Trust shall bind, inure to the benefit of, and be exercised by successors in interest of all parties. Grantor may expressly assign its interest in the Property subject to the liens and obligations under the Note and this Deed of Trust, and the assignee shall assume the same, at which time, Beneficiary releases Grantor from any of the obligations under this Deed of Trust and the No:te, and Grantor shall have no further obligations under the Note and this Deed of Trust. 5.10 Partial Release. Any part of the Property may be released by Beneficiary without affecting the lien hereof against the remainder of the Property. .5.11 Headings. The headings contained in this Deed of Trust are included for convenience of reference only and are in no way intended to describe, interpret, defme or limit the scope intent or substance of this Deed of Trust or any provision hereof. 5.12 Governing Law. This Deed of Trust shall be governed by and construed and enforced in accordance with the laws of the State of Texas without giving effect to any conflicts-of-law rule or procedure which would refer the matter to another jurisdiction. 5.13 Notice. All notices, requests, demands and other communications required or permitted to be given hereunder shall be deemed to have been d.uly given ifin writing and delivered personally. or mailed first class, postage prepaid, registered or certified United States mail, to such address as provided below. ~age 5 ~ '-l ; f , ~ I I . I' IN WITNESS WHEREOF, the undersigned executes this Agreement as.ofthe date of the acknowledgment set forth below, but to be effective as of the Effective Date. GRANTOR: EAST A DEVELOPMENTS, L.P. "~ By: GSDB Management, L.L.C., its General Partner -" By: /" Garson Silvers Manager THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ t/A-/ This instrument was acknowledged before me on th~r day of October, 2008, by East A Developments, L.P., by GSDB Management, L.L.C., its General Partner, by Garson PAMSLA JoAHN N;:rveompubnc. Stat.L:J~~a. Y m/..fon E.lCpfrts JUly 08.20/2 ADDRESS OF GRANTOR: 1001 Usener Houston, Harris County, Texas 77007. OF BENEFICIARY: 604 W. . mont Parkway La Porte, Harris County Texas 77571 MAILING ADDRESS OF TRUSTEE: Askins & Askins, P.C. 702 W. Fairmont Parkway La Porte, Texas 77571 Alfl'PR(7I1$l)N HmWHlCll RemtTS 1It!$.\l! .mAl. OlllJSi Of THE O~ REAL PIlOPEIIY ae:.wse Cf'COlOll OR va is lIIYilllNlO IJoEJIi'ORCaDlE UHIlER F!DWl.LAlY. THE STATE OF TEXAS COUNTY OF HARRIS I ile!Ibr crii 'Os a.-t"dl FlED il Fit IMIb11 SeqolllCalllllt dIlI-.l1l1h ... -pH....." ..; ltld was'" RfCOliDED. _lit 0fi0Il P1lIIc IUcoolstfRat ~llJ .'IID ClIIny, T_~ t = '~n". ~ -0 ~ tn <=" ...... "'T1 g~ ~ t:a) c::-c; r~ - r- ~r; r. ii t} ;;g - x ._ 'P' _ CA #'" OCT 3 1 2008 e ~4~ 6 COUNTY CLERK Page HARRIS COUNTY, TEXAS 'I.. U.S.DEPA~lMENT O~ HOUSING AND URBAN DEVELOPMENT OMJ:l No. ;'::>U"-V"~I a . TYPE OF LOAN 1. [lFHA 2. [ lFMHA 3. [lCONV. UNINS. 4. [ lVA 5. [lCONV. INS. 6. FILE NUMBER: 07106752 6. MTG. INS. CASE NO.: This form is furnished to giv" you a statement of _aI settlement COSls. Amounts paid to and by the seUlement agent are shown. Items marked ("p.o.c.") were paid ourside the closing: they are shown here for Information purposes and are not included In the lOads. I. NAME OF BORROWER: EAST A. DEVELOPMENT, L. P. 1 T. LOAN NUMBER: .NOTE: ADDRESS: " NAME OF SELLER: 1001 USENER HOUSTON TEXAS 77009 WADE COOPER ADDRESS: '. NAME OF LENDER: 2501 PINEBROOK LANE SEABROOK TEXAS 77586 LA PORTE ECONOMIC DEVELOPMENT CORPORATION SEU-ER TIN: ADDRESS: I.PROPERTY LOCATION: NORTH 17FT OF LT 9, ALL OF LOTS 6,7,& 6, BLOCK 198 CITY OF LAPORTE 109 & 11 SAN JACINTO AVE TX STEWART TITLE COMPANY CLOSER: PAM LESTER 9434 OLD KATY ROAD, SUITE 230 HOUSTON TEXAS 77055 PHONE NUMBER: (713) 666-4300 t. SETTLEMENT AGENT: ADDRESS: 'LACE OF SETTLEMENT: STEWART TITLE PHONE NUMBER: (713) 666-4300 I I. SETTLEMENT DATE ADDlUlSS: 9434 OLD KA TY ROAD, SUI TE 230 Closing date: 10/29/08 HOUSTaN TEXAS 77055 Proration date: 10/29/08 1. SUMMARY OF BORROWER'S TRANSACTION K. SUMMARY OF SELLER'S TRANSACTION 100. GROSS AMOUNT DUE FROM BORROWER: 400. GROSS AMOUNT DUE TO SELLER: 101. ContraCt sales Drice 295 000.00 40 1. Contract sales price 295 000.00 102. Personal DroDertV 402. Personal DrooertY 103. SeUlement chllI1les to borrower(line 1400) 2 060.55 403. 104. 404. 105, 405. AdjusanenlS for items paid by seller in adv.."",,: Acljusunenrs for items paid for seller in advance: 106. City/town taxes to 406. City/town taxes to 107. CountY ",xes to 407. CountY Iaxes to 108. Assessments to 408. Assessments to 109. Maincenance to 409. Maintenance to 110. ScboollTaxes to 410. SchoollTaxes to 111. 411. " 112. 412. 120. GROSS AMOUNT DUE FROM B9RROWER: 297,060.55 420. GROSS AMOUNT DUE TO SELLER: 295,000.00 ! 200. AMOUNTS PAID BY OR IN BEHALP OF BORROWER: 500. REDUCTIONS IN AMOUNT DUE TO SELLER: I 201. DeDOsit at earnest money 100.00 SO 1. Excess deooslt(see instrUCtions) 202. Principal amount of new 1oan(s) 150 000.00 502. Settlement charJles to seller(line 1400) 3,3B1.46 I 203. Existing loan{s) taken subiect to 503. Existinl!: Ioan(s) taken sublect 10 204. Commitment Pee i 504. Payoff of first mort.....e loan 95 687.59 205. 50S. Payoff of second mortgage loan 106401.24 206. Ootlon Fee 3,500.00 506. Ootion Fee 3 500.00 207. PAID TO SELLER 62 216.66 507. PAlO TO SELLER 82 216.66 I 208. MTP 06106647 -POCS 150 000.00 S08. 209. 509. Adiustmenta for itemS unpaid by seller: AdlustmenlS for Items unoaid by seller: 210. C\tyllown taxes to ~110, City/IOwa taxes to 21 J. County taxes 01/01/06 to 10/29/08 1 8'1.03 51 I. Collnty laXe. 01/01/08 to 10/29/08 1 611.03 212. Assessments to 512. Assessments to 213. ScboollTaxos 10 513. SchoollTaxe. 10 214. 514. Maintenance to 215. 515. 216. 516. 217. 517. 218. 518, 219. 519. 220. TOTAL PAID BY/FOR BORROWER: 520. TOTAL REDUCTION IN AMOUNT: 237 629.71 295,000.00 300. CASH AT SETTLEMENT FROMrrO BORROWER: 600. CASH AT SETTLEMENT TOIFROM SELLER: 301. Gross amount due from borrower(line 120) 297,060.55 60 I. Gross amount due to se!lermne 420) 295 000.00 302. Less amollnts Daid by/for borrower(1ine 220) 237 629.71 602. Less total reductions in amount duo seUer(llne 520) 295 000.00 303. CASH rx PROMl r TOI BORROWER: 59 430.84 603. CASH r TOI [ PROMI SELLER: 0.00 SETTLEMENT AGENT TIN' 74-0923770 EXHIBIT I c PAID FROM PAID FROM 'I Ie .07108752 L. SE'ITLEMENT CHARGES BORROWER'S SELLER'S FUNDS FUNDS 700. TOTAL SALES/BROKER'S COMMISION Based on S @ %- AT SETTLEMENT AT SETTLEMENT Division of Commission (line 700) as follows: 701. S to 702. $ to 703. Commission Daid at settlement 704. 800. ITEMS PAYABLE IN CONNECTION WITH LOAN. 801. Loan Origination fee % -."- 802, Loan Discount 9r. 803. ADoraisa! fee to 804. Credit Report to 803. Lender's inmection fee to 806. MortRaRe Insurance aDPlicatlon fee to 807. AssumDtion Pee to 808. Commianent Fee to 809. FNMA Processin.. Pee to 810. PlcLUres 10 811. to 812. to 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE. 90 1. Interest from to tm$ Iday 902. Mort.....e insurance oremium for mo. to 903. Hazard insurance oremium for VTS. to 904. FlOOd Insurance vrs.IO 90S. 1000. RESERVES DEPOSITED WITH LENDER 100 1. Hazard Insurance me.@S oer mo. 1002. Mo....a"e insurance me.@S !)ermo. 1003. City DrooertY tlU<ea mo.@S ne:rmo. 1004. County DropertY taxes mo.@S ner mo. l00S. Annual assessments (Malnt.) mo.tm$ per mo. 1006. School PrDnerty Taxea me.@S Der mo. 1007. Water Dlst. ProD. Tax me.@S Der mo. 1008. Flood Insurance mo.@S Der mo. 1009. Allllregate AccountinJl Adjustment 1100. TITLE CHARGES: 1101. Settlement OT closiwr fee MTP 08108647 to STEWART TITLE 1 160.00 1102. Abstract or title search TAXCERT 0810864 to STEWART TI TLE 64.95 1103. Title el<amination GTYFEE 08108647 to STEWART Tl TLE 5.00 l'l04. Title Insurance binder 10 110'. Document preparation RELEASE OF LI EN to RICHARD A. CROIoI P.C. 100.00 1106. NotarY fee to 1107. Attornev's fee to to BENJAMIN MILLER 175.00 (includes above items No.: ) 1108. Title insurance SOX to Richard A. Crow to STEWART TI HE 4:52.60 1 884.00 (inCludes above items No.: ) 1109. Lender's coveraRe 150 000.00 $ 150.00 1110. Owner's cOVcraRe 295 000.00 $ 2 166.60 Sur Del 1111. Escrow fee to RICHARD A. CROIoI P. C. 300.00 300.00 1112. Restrictions to 1113. Me..senoer Fee/Document Del ivery to RICHARD A. CROIoI P. C. 25.00 35.00 1114. 10 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. RecordinR feea: DeedS 25.00 MTtIlS 48.00 Rei. $ 50.00 73.00 50.00 , 1202. Clrv/counrv taxlstamos: Deed $ MrtR $ 1203. State taxlstamns: Deed $ MTtIl S 1204. Tax certificates to STEWART TITLE 64.95 120'. to 1206. to 1300. ADDmONAL SET'I'LEMENT CHARGES 1301. Survev to I 3OZ. Pest insnection to ! 1303. to 1304. 2006 DEI.INQUENTAXES to HARRIS COUNTY TAX ASSESSOR COLLECTOR 204.35 130'. 2007 DELINQUENT TAXES to LA PORTE CITY AND ISO 568.16 1400. TOTAL SE'M'LEMENT CHARGES (entered on lines 103. Section J and 'OZ. Section K) 2 060.55 3,:581.46 :ERTlFtCATlON: I have carefully reviewed the HUD-l Settlement Statement and to the best ofm)' knowledge and belief, Ie is a ttue and accurate statement of all ",eiplS and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of HUD-l Settlement Statement. l"rowcrs 'he HUD-l Settlement Stateme :;cordance with this _lement. disbursed in ,ettlement Alent Date SEE PAGE 3 FOR SIGNATURES, IF APPLICABLE v'ARNING: 11 is a crime to knowingly 1l1a1<e flIl... SllltemenlS 10 the United SIllh,s on this or allY olher similar form. Pernlh.ics upon cUllvicllon call include a tine alld nprisonmem. For details see: Title 18: U.S. Code Section 1001 and Section 1010. ,". Page 3 to be affixed to HUD- 1 Settlement Stetement File No.: 071.08752 CERTIFICA TION Seller's and Purchaser's si9~ature hereon acknowledges his/their approval of tax prorations and signifies their understanding that prorations were based on taxes for the preceding year or estimates for the current year, and in the event of any change for the current year, all necessary adjustments must be made between Seller and Purchaser; likewise any default in delinquent taxes will be reimbursed to Title Company by the Seller. The parties have read and understood the above sentences, and recogniz;e that the above recitations herein are material and important. The parties agree to these statements, and recognize Title Company is relying on these recitations in closing this transaction. Title Company has deposited the earnest money that It has received in a demand deposit account that Is federally Insured to the maximum extent permitted by law. Demand deposit accounts are non-interest bearing pursuant to federal law, but offer immediately available funds for withdrawal after a check has cleared. Title Company may receive other benefits from the financial institution where the funds are deposited. Based upon the deposit of escrow funds In demand deposit accounts and other relationships with the financial institution, Title Company is eligible to participate in a program offered by the financial institution whereby the title Company may (I) receive favorable loan terms and earn income from the investment of loan proceeds and (iI) receive other benefits offered by the financial institution. I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it Is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I certify and acknowledge that I have received a copy of the HUD-1 Settlement Statement and have r:.~.d2and underst~OOd the dis:ur~e state above. / /'" ./ ~ --...r: ?'~~ ~ Purchaser(s)/80rrower Seller(s) Purch aser (s) /80 rrow er(s) Seller(s) To the best of my knowledge', the HUD-1 Settlement Statement which I have prepared is a true and accurate account of the funds which were received and have been or will be disbursed by the unde,. spartoft se mentOfthis"ana"D~4f' ~6fgr ate " WARNIN<;3: It is a crime to knowingly make false statements to the United States on this or any other similar form. Penalties upon conviction can Include a fine and imprisonment. For details see: Title 18 U.S. Code Section 1001 and Section 1010. NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AND INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. ~tntral marrantl1 Ilttb witq ]Itnbnr's 11litn THE STATE OF TEXAS COUNTY OF HARRIS ~ ~ ~ Know All Men By These Presents: That WADE COOPER, an individual, ("Grantors", whether one or mo.re), for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration to Grantors this day paid by EAST A DEVELOPMENTS, L.P., a Texas limited partnership ("Grantees", whether one or more), of Harris County, Texas, the receipt and sufficiency of which is hereby acknowledged, and the further consideration of the execution and delivery by Grantees of the following: That certain promissory note ("Note" of even date herewith in the original principal sum of $150,000.00 payable to the order of La Porte Economic Development Corporation ("Lender", bearing interest and being payable as therein provided, which Note is secured by a vendor's lien herein reserved, and is additionally secured by a Deed of Trust of even date herewith executed by Grantees to Knox Askins, Trustee, reference to which is here made for all purposes; and in consideration of the payment of the su~ above mentioned, Grantor hereby transfers, sets over, assigns and conveys unto Lender, and his heirs, administrators and assigns, the vendor's lien and superior title herein conveyed, in the same manner and to the same extent as if the Note had been executed in Grantor's favor and assigned by Grantor to Lender without recourse; have GRANTED, BARGAINED,. SOLD and CONVEYED and by these presents do GRANT, BARGAIN, SELL and CONVEY unto Grantees all of the real and personal property situated in Harris County, Texas, described more par~icularly in Exhibit "A", attached hereto and incorporated by reference (the "Subject Property"). GF#: 1/ 7/?JZ:~ 21-A/RICHARJj CROW . .STEWART TITLE COMPANY Page -1- TO HAVE AND TO HOLD the Subject Property, together with all and singular the rights and appurtenances thereto in anywise belonging ~to Grantees, their heirs, administrators, successors and assigns, forever; and Grantors do hereby bind themselves, and their heirs, administrators, successors and assigns, to WARRANT AND FOREVER DEFEND, all and singular, the Subject Property unto Grantees, and their heirs, administrators, successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof. But the express vendor's lien and superior title are retained in favor of Lender and his heirs, administrators and assigns, upon the Subject Property until the Note and all other sums to accrue or to become payable thereunder shall have been paid in full in accordance with the face, tenor, effect and reading of the Note, whereupon this Deed shall become absolute. . EXECUTED this th~f October, 2008. -~~ ~~ Wade Cooper "Grantors" THE STATE OF TEXAS COUNTY OF HARRIS PAMELA JOANN liSTER Notary Public, State of TelC4a My Commlsaion EJcplres JulY 08, 2012 by Wade Cooper. ADDRESS OF GRANTEES: 1001 Dsener Houston, Texas 77006 H:\Ben'\Client Filea'\Eaat A Developmenta LP\880 Agreement with the City of La Porte'\xGWD.wpd\1021081114828 Page -2. Exhibit ''.A" to General Warranty Deed All of Lots 6, 7,8, and the North 17 feet of Lot 9, in Block One Hundred Ninety-Eight (198) of TOWN OF LA PORTE, an addition in Harris County, Texas, according to the map or plat thereof recorded in Volume 8, Page 16 of the Map Records of Harris County, Texas, together with all improvements thereto. Page -3- a skins & askins P.c. ATIORNEYS and COUNSELORS Knox W. Askins Clark T. Askins March 1~2009 Ms. Pam Lester Escrow Officer Stewart Title Company 9434 Old Katy Road, Suite 230 Houston, TX 77055 ~lester@stewart.com Re: East A Development LP, $150,000.00 Promissory Note to La Porte Economic Development Corporation, 109 and 111 San Jacinto Street Dear Ms. Lester: The balance due on the $150,000.00 Promissory Note from East A Development, LP, to the La Porte Economic Development Corporation, is $150,000.00 principal, and per diem interest of $20.54" from October 29, 2008, to the date of payment. ' Attached to this letter is wiring instructions for the title company to send the payoff funds to the City of La Porte. I have prepared a form of release of lien which the La Porte Economic Development Corporation will execute and forward to you, to be held in escrow against this payment, for your Closing. Please call me if you have any questions. bottomsr@la~ortetx.qov . KWA: sw Enclosures co: Mr. Ron Bottoms Manager La Porte Economic EXHIBIT I D 702 W. Fairmont Parkway, P.O. Box 1218, La Porte, TX 77572.1218 281.471.1887 phone . 281.471.2047 fax . knoxasldns@comcast.net . ctasldnS@swbell.net City of La Porte Wiring Instructions Amegy Bank Back Name: Amegy Back Routing Number: ABA 113 011 25 8 Account Number: # 31208 8 Account Name: La Porte General Operating Account RELEASE OF LIEN THAT the undersigned, the legal and equitable owner and holder of that one certain promissory note hereinafter described, ~or and in consideration of the full and final payment of all indebtedness secured by the hereinafter lien or liens, the receipt of which is hereby acknowledged, has released and discharged, and by these presents releases and discharges, the hereinafter described property from all liens held by the undersigned securing said indebtedness, to-wit: Date of Note: October 29, 2008 Amount of Note: $150,000.00 Executed by: Payable to: East A Developments, LP La Porte Economic Development Corporation Recording References: Deed of Trust: 20980542456 Property Description: All of Lots 6, 7, S, 9, 10, and the West fifty-six and four tenths (56.4) feet of Lots 11, 12 and 13, in Block One Hundred Ninety-Eight (198) of TOWN OF LA PORTE, an addition in Harris County, Texas, according to the map or plat thereof recorded in Volume 8, page 16 of the Map Records of Harris County, Texas. Date: nn~~ I~, 2009. ment Corporation By: STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ This instrument was acknowledged before me on the ~ day of rn~~Jh , 2009, by Ron Bottoms, Manager of La Porte Economic Development Corporation, a Texas non profit corporation, on behalf of said entity. - _. - ~ '@) aEUSA LMGL08 .., c.-...... January 10. 2013 - ~ AFTER RECORDING RETURN TO t PUPARBD IN THE LAW OFFICE OF: ASKINS & ASKINS, P.C. P.O. Box 1218 La Porte, TX 77572-1218 City of La Porte Established 1892 May 4, 2010 I certify the following: On October 28, 2008, the City of La Porte wired the sums of $150,000.00 (US Dollars) and $153,42456 (US Dollars) to Stewart Title company. On March 27, 2009, the City of La Porte received $153, 183.70 (US Dollars) from Stewart Title Company. M~:!C~ Director of Finance 604 W. Fairmont Pkwy. · La Porte, Texas 77571 · (281) 471-5020 City of La Porte Interoffice MetTIorandum To: Fiscal Affairs Committee From: Date: May 5,2010 Subject: URS billing The committee requested information on URS's reimbursable expenses at the April 20th meeting. I stated to you that I did not see a problem pulling together the information and could have it to you for the next meeting on April 2th. However, providing the information did not prove to be as easy as I had initially thought. The initial issue had to do with an interpretation of the contract - URS's position was that the contract was "all inclusive", with a not to exceed amount. My position, after reviewing the agreement, was that the reimbursables should be separately accounted for. URS, represented by Dan Waldrop, stated that they did not see a problem providing the City with the justification for all of the reimbursable expenses and they provided additional backup, although it was not as detailed as we would have liked. They have since included additional details for these expenditures. I did a really poor job of explaining this the other night and I understand that you still have some concerns regarding their billing. To address these concerns, and to take me out of the middle, I asked URS to provide a summary of their billing which they have done (attached). In the summary you will note that the underlying theme is that they state they provided services above and beyond the contractual requirements. They did ask for additional compensation, to which I said no. We've copied all of the backup for their reimburseables and placed it in your office - it was too large to attach to this document. I also would like to let you know the process for which we oversee these types of contracts. The construction of the plaza was overseen by Reagan McPhail and he reviewed and signed off on all of the contractor's invoices before I reviewed and signed off on them. The URS contract was overseen by the Economic Development Coordinator (Gretchen, Debbie and now Stacey). They reviewed and signed off on URS's invoices and then I reviewed and signed off on them. So as you can see there are at least levels of review and scrutiny. In most cases purchasing and finance are also involved. Please let me know if you have any questions. URS May 03, 2010 Office of the City Manager 604 West Fairmont Parkway City of La Porte, Texas 77571 Attention Mr. Ron Bottoms. Summary of Five Points Plaza, Study, Design, and Construction Phase services contract between URS Corporation and the City of La Porte Economic Development Corporation. Dear Mr. Bottoms, Per your request, URS Corporation is pleased to present the following summary of events associated with the design and construction of the Five Points Plaza Project. We start with our October 1, 2008, URS Corporation presentation to the La Porte Economic Development Corporation an architectural and construction phase services proposal to the City of La Porte's Economic Development Corporation (EDC) for the Five Points City Plaza Project. . In that proposal URS presented, and the City EDC agreed to compensation URS Corporation for professional services as follows: $140,000 for the plaza design $22,000 for the construction phase services $35,000 for the traffic and utility infrastructure studies relating to the plaza area $7,000 for the surveyor $19,900 for miscellaneous reimbursable expenses. This resulted in a design proposal that was accepted by the City of La Porte for a total of $223, 900.00. After the contract was executed the City requested to have an enhancement by adding audio, visual, and wifi to the Plaza URS engaged the services of Shen Milsom and Wilkie for audio and Wi Fi design and equipment services for $18,000. Later additional construction phase expenses were included for geotechnical contractor A viles Engineering for $8,000 This resulted in a total contract amount of $249,900 for services under the URS Corporation contract. URS Corporation Once awarded, the plaza project experienced some upward scope creep to accommodate City requests. Two major scope changes were for a larger park area and larger gazebo than was originally envisioned. This resulted in a larger (19-15%) park. (The difference was the comer lot expansion and a larger gazebo.) The original estimate of construction cost was on the order of magnitude of $1.7 million. Our professional fees at that time were approximately 7 %. As discussions with City officials evolved, the city expressed the desire to have a larger town plaza size, permitting better and more prolific landscaping by changing Avenue A alignments from the earliest design. Also the gazebo size was increased by 25% or approximately $100,000 to accommodate more public venues. No increase in URS fees, were requested, although by normal industry standards, URS would have been justified in asking for additional fees at this time. At City request, URS expected the City to provide site environmental and geotechnical data. This was understood by us to have been garnered from the previous land owner, Mr. Garson Silvers. However, upon review of this data, it was determined by URS and agreed with by the City that this technical information was not sufficient to accommodate a design of the San Jacinto Gateway, Pavilion nor the Broadway entrance, especially since the design, in order to resist Hurricane force winds, would require heavy structures and soil bearing loads. To obtain reliable data to initiate design, URS was asked by the City of La Porte to engage a geotechnical contractor. This contractor was A viles Engineering, a firm already approved by the City of La Porte and working at the 908 Main Street Gateway project. URS then engaged in negotiations with Aviles on behalf of the City to perform geotechnical services for the amount of $8,000, which was approved as an addition to our contract. During the geotechnical investigation, A vilies confirmed historic leaking underground storage tank contamination that resulted from the operation of a service station on the Five Points Site. The City upon understanding the nature and extent of contamination, hired an environmental firm to perform remediation of the site. This remediation, not under URS' contract, added delays to the URS schedule of a least a month during very dry construction weather. This unanticipated environmental situation entailed numerous meetings involving URS for which URS received no additional compensation. When underground storage tank remediation and associated fuel piping removal was performed, the result was a large crater within the boundaries ofthe plaza. This crater created an unanticipated situation which created additional delays while cost decisions were being evaluated by the City. During the City's evaluations, URS was asked to act as a liaison between the URS' Geotechnical firm (Aviles) and the City, which we did, with no change order. URS Corporation 2 Aviles Engineering provided a recommendation that the City place select compacted fill in the crater. This select fill would have resulted in an additional $25,000 for the fill. The City evaluated other less expensive solutions and used URS expertise to further a decision. This evaluation process required 11 meetings, (3 face to face and approximately 8 phone conferences) to resolve and recommend the most cost effective path forward. URS was not compensated for these expenses. The result, however, of this deliberation was a cost saving of over $23,000 for a combination of compacted clean and select fill versus all select fill. Again, this request was honored by URS, but was an unanticipated expenditure oftime and effort, worth approximately $3,000 in URS project management time and expense. Additionally, URS Corporation, at the unanticipated request of the City, represented the City of La Porte, in their dealings with Center Point Energy, for power access to enable the construction contractor, C.F. Jordan to anticipate the location of power feeds. Again at no charge to the City. During the initial phases ofthe contract, the City of La Porte was required to provide information to URS on the location and direction of flow of the storm water drains on site. Because the City was working with old existing storm line drawings, the City could accurately not tell URS where the sewer lines actually went. After a couple of weeks of negotiation, the City of La Porte had their public works department perform dye tests to determine where the lines actually exited. This caused additions trips, delays and meetings during the design and construction phases, again for which URS received no additional compensation. Another decision, in response to a desire by the City about for a high profile feature on the north end of the Plaza, (the curved concrete sign bench) resulted in additional and unanticipated civil design and architectural work. Again these costs were not anticipated in the original proposal. (Much of these "before and after" changes are evidenced in the URS produced Five Points video.) An additional element that affected cost and schedule was when La Porte's City Council, mandated that the fountain drains be redirected from the storm sewers into the sanitary system. This was after City Code Officials approval of the design to have the fountains drain into the storm system. When Council overruled the Code Officials, the lowest responsive responsible bidder, C. F. Jordan, was given a directive that the fountain drains be placed into the sanitary sewer system. This seemingly minor directive created an additional three weeks of delays while the City negotiated with the Contractor. URS provided an amended civil drawing at no charge to show the path of the sanitary lines. The City eventually agreed to self-perform the sanitary sewer line connection to the Five Points boundary by utilizing Public Works personnel. Again, this caused delays and additional meetings. However, it was during the construction of the sanitary sewer drain lines, that the City discovered additional abandoned fuel oil tanks on the adjacent project land. This also affected the Construction schedule which affect URS' schedule. URS Corporation 3 During the placement of the palm trees, the Landscape Contractor and the City questioned the original location of the palm trees in design relationship to the overall design of the paved areas. To resolve this, URS arranged for the Landscape contractor to travel from Dallas to stake out the Majool Palms in the arrangement that is now a major feature of the Plaza. Again URS was required to expend time and materials to supervise the staking, and layout of the Majool palms and resulting changes in the irrigation systems. Again, this resulted in an unanticipated and uncompensated expenditure. Other expenses that URS did not anticipate, nor was additionally compensated were meetings associated with freezing weather, extra ordinarily wet weather, and delayed dedication ceremonies. One other area of unanticipated costs, delays, meetings was associated with the audio and WI-FI at the plaza. It was only after the equipment arrived and was being installed that it was discovered that the Five Points WI-FI could not be integrated into the City's internet system due to security risks as defined by the City's IT personnel. This was not made known to URS; however, URS accommodated the City with coordination that resulted in separate WI-FI to maintain integrity of the City IT systems. As to questions about the form and interpretation of the contract with URS Corporation, URS and City of La Porte's Economic Development Corporation entered into a basic agreement for design services that was to be a time and materials contract. URS, at its sole discretion voluntarily added the" not to exceed" in the body of the scope definition. At that time, we felt that there was enough money in the contract to cover an anticipated 180 day design/construction project. This NTE was good will effort on the part ofURS to answer any questions as to the maximum amount of fees the city would be obligated to pay without a requested change order process. Although URS expended considerable time and effort to permit this project to proceed quickly with minimal contractual disputes, it was never envisioned that URS would provide services infinitely on any anticipated or unanticipated change of condition. Our interpretation is that when we recognized that a major scope change was developing, we would enter into negotiations for additional compensation. Although attempted, URS was turned down, but we held up our end of the NTE contract. In other words, we eventually lost money on the project, but that was our sole decision rather that put the project into jeopardy. It was our opinion in October 2008, that the $140,000.00 for design of the plaza was adequate for a project time starting October, 2008 through March, 2009 or 180 days. The construction phase, estimated at $22,000 appeared adequate for a 6 month construction completion schedule, however the construction phase was actually in excess of nine months. URS did not anticipate that substantial completion, would actually take nearly three months longer. URS assisted the City and the general contractor expending over 120 hours during the three months of additional construction time without compensation. URS Corporation 4 The construction total cost of the Plaza, excluding fees, is approximately $2 million. Normal architectural fees for a creative and unique artistic project like this are normally in excess of 10% due to the specialization of services, however, our fees, are currently 5.8% the design, and 1.2% for construction phase services. Well under normal fees for an ordinary project and do not reflect the thousands of dollars of additional consultation services not billed under the NTE price. As for the reimbursable expenses of$19,900, this figure was developed from experience with anticipated travel mileage, tolls, plotting fees, printing costs and other miscellaneous out of pocket project expenses. We have provided back up for these expenses. We hope this satisfies your request for our explanation, interpretation and summary of our contract. Finally, although the many issues above were unanticipated, URS believes that together we performed admirably to provide the City of La Porte with an outstanding City Plaza. The uniqueness and beauty ofthis plaza has already garnered national attention and praise for the City, and we are pleased to have been your partner in this iconic project. Sincerely 7;on Dan Wardrop, AlA Project Manager URS Corporation 5 Due to the volume of this contract, a copy is available for your review in the City Secretary's Office REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 5/10/10 Requested By: Stacey Osborne Department: Administration Auurouriation Source of Funds: Account Number: Report: Resolution: Ordinance: X Amount Budgeted: Amount Requested: Budgeted Item: YES NO Exhibits: Public Hearing Notice Exhibits: Texas Enterprise Zone Ordinance Exhibits: SUMMARY & RECOMMENDATION The Texas Enterprise Zone is an economic development tool for local communities to partner with the State of Texas to promote job creation/retention and capital investment in economically distressed areas of the state. Companies that wish to apply for Texas Enterprise Zone designation must have the nomination of a local community in order to participate. This public hearing is part of the nomination process. lubal Smith from Pricewaterhouse Coopers LLC is representing Invista, and he will be on-hand to answer any questions of Council and/or the Public. The purpose of this hearing is to receive public input on the consideration ofa city ordinance nominating INVISTA S.a r.t., 12455 Strang Road, La Porte, TX 77571 for the Texas Enterprise Zone Program as an Enterprise Project. Tax and other incentives may also be discussed at this hearing. At the hearing, interested parties are welcome to attend and present their views for or against the nomination. Following the public hearing, we would like Council to vote on the attached ordinance ordaining the City's participation in the Texas Enterprise Zone Program, designating a liaison for communication with interested parties, and nominating INVISTA S.a r.t. to the Office of the Governor Economic Development & Tourism (EDT) through the Economic Development Bank (Bank) as an Enterprise Project (Project). Ifthe ordinance is passed, Invista will be nominated as an Enterprise Project and they will be eligible to apply for State tax abatements. The City of La Porte will not incur any costs as a result ofthis designation, and we will have used one of our five permitted designations for the 2010-2011 period. Ron Bottoms, City Manager 5/'i'/to date THE STATE OF TEXAS) COUNTY OF HARRIS) CITY OF LA PORTE) Notice of Public Hearing Notice is hereby given that the City of La Porte will conduct a public hearing at 6:00 P.M. on the 10th day of May, 2010, in the Council Chambers of the City Hall, 604 West Fairmont Parkway, La Porte, Texas. The purpose of this hearing is to receive public input on the consideration of a city ordinance nominating INVISTA S.c3 r.l., 12455 Strang Road, La Porte, TX 77571 for the Texas Enterprise Zone Program as an Enterprise Project. Tax and other incentives may also be discussed at this hearing. At the hearing, interested parties are welcome to attend and present their views for or against the nomination. A regular meeting of the La Porte City Council will follow the public hearing for the purpose of acting upon the public hearing items and to conduct other matters pertaining to Council. Citizens wishing to address Council pro or con during the Public Hearing will be required to sign in before the meeting is convened. CITY OF LA PORTE Martha Gillett, TRMC, CMC City Secretary A QUORUM OF CITY COUNCIL MEMBERS MAY BE PRESENT AND PARTICIPATE IN DISCUSSIONS DURING THIS MEETING; HOWEVER, NO ACTION WILL BE TAKEN BY COUNCIL. THIS FACILITY HAS DISABILITY ACCOMMODATIONS AVAILABLE. REQUESTS FOR ACCOMMODATIONS OR INTERPRETIVE SERVICES AT MEETINGS SHOULD BE MADE 48 HOURS PRIOR TO THE MEETING. PLEASE CONTACT THE CITY SECRETARY'S OFFICE AT #281- 471-5020 OR THE TDD LINE AT #281-471-5030 FOR FURTHER INFORMATION. ORDINANCE No. An Ordinance of the City Council of the City of La Porte, Texas, ordaining authorizing the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code (Aet); providing tax incentives, designating a liaison for communication with interested parties, and nominating INVISTA S.a r.I. to the Office of the Governor Economic Development & Tourism (EDT) through the Economic Development Bank (Bank) as an Enterprise Project (Project); containing an severability clause; containing an Open Meetings clause; providing an effective date hereof. WHEREAS, the City Council of the City of La Porte, Texas (City) desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, the project or activity is not located in an area designated as an enterprise zone; and WHEREAS, pursuant to the Texas Enterprise Zone Act (Act), Chapter 2303, Texas Government Code, Subchapter F of the Act, INVIST A S.a r.I. has applied to the City for designation as an enterprise project; and WHEREAS, the City finds that INVIST A S.a r.I. meets the criteria for tax relief and other incentives adopted by the City on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, a duly advertised public hearing to consider this ordinance was held by the City Council on May 10,2010; Now, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section 1: The City nominates INVIST A S.a r.I. for enterprise project status. Section 2: The following local incentives, at the election of the City Council of the City of La Porte governing body, are or will may be made available to the nominated project or activity of the qualified business: a) The City may abate taxes on the increase in value of real property improvements and eligible personal property that locate in a designated enterprise zone for up to W 5 years, to the extent eligible for tax abatement under state law and city ordinances. The level of abatement shall be based upon capital investment, and the extent to which the business receiving the abatement creates jobs for qualified employees, in accordance with the City of La Porte Tax Abatement Peliey Guidelines and Criteria, Chapter 66 of the La Porte Code of Ordinances, and with "qualified employee" being defined by the Act. b) The City may, as allowed by law, provide business and industrial development services, including: 1) Grants to eligible companies through the city's 41\. nnd 4B Type B sales tax corporation; 2) Chapter 380 tax rebates for projects which significantly enhance the city's tax base; 3) Freeport exemption on property tax for employer's inventory that is shipped outside of Texas; 4) has established a Tax Increment Reinvestment Zone; 5) provision of publicly owned land for development purposes, including residential, commercial, or industrial development; 6) creation of special one-stop permitting and problem resolution centers or ombudsmen; or 7) promotion and marketing services. c) The City may, as allowed by law, provide regulatory relief to businesses, including: 1) zoning changes or variances; 2) exemptions from unnecessary building code requirements, impact fees, or inspection fees; or 3) streamlined permitting. d) The City may, as allowed by law, provide enhanced municipal services to businesses, including: 1) improved police and fire protection; 2) institution of community crime prevention programs; or e) The City may, as allowed by law, provide improvements III community facilities, including: 1) capital improvements in water and sewer facilities; 2) road repair; or 3) creation or improvement of parks. f) The City may, as allowed by law, provide job training and employment services to businesses, including: 1) retraining programs; 2) literacy and employment skills programs; 3) vocational education; or 4) customized job training. Section 3: Section 4: Section 5: Section 6: Section 7: Section 8. The enterprise zone areas within the City are reinvestment zones III accordance with the Texas Tax Code, Chapter 312, Section 312.203. The City of La Porte City Council directs and designates Stacey Osborne as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. The City finds that INVIST A S.a r.l. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Texas Enterprise Zone Act on the following grounds: (a.) INVISTA S.a r.l. is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction, located outside of an enterprise zone and at least thirty-five percent (35%) of the business' new employees will be residents of an enterprise zone or economically disadvantaged individuals; and (b.) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area; and (c.) The designation of INVISTA S.a r.l. as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. The enterprise project shall take effect on the date of designation of the enterprise project by EDT and terminate on 6 1 15 June 1,2015 (not less than one year, or more than jive (5) years after the date of designation). Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair or invalidate the remaining portions thereof; but as to such remaining portion or portions, the same shall be and remain in full force and effect and to this end the provisions of this ordinance are declared to be severable. 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 is 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 Chapter 551, Tx. Gov't 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. This Ordinance shall be effective after its passage and approval. PASSED AND APPROVED this the day of ,2010. CITY OF LA PORTE By: Mayor ATTEST: City Secretary APPROVED: Assistant City Attorney ORDINANCE No. ~~~ L/ S An Ordinance of the City Council of the City of La Porte, Texas, authorizing the City's participation in the Texas Enterprise Zone Program pursuant to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code; providing tax incentives, designating a liaison for communication with interested parties, and nominating INVIST A S.a r.l. to the Office of the Governor Economic Development & Tourism (EDT) through the Economic Development Bank (Bank) as an Enterprise Project (Project); containing an severability clause; containing an Open Meetings clause; providing an effective date hereof. WHEREAS, the City Council of the City of La Porte, Texas (City) desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, the project or activity is not located in an area designated as an enterprise zone; and WHEREAS, pursuant to the Texas Enterprise Zone Act (Act), Chapter 2303, Texas Government Code, Subchapter F of the Act, INVISTA S.a r.l. has applied to the City for designation as an enterprise project; and WHEREAS, the City finds that INVIST A S.a r.l. meets the criteria for tax relief and other incentives adopted by the City on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, a duly advertised public hearing to consider this ordinance was held by the City Council on May 10,2010; Now, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section 1: The City nominates INVISTA S.a r.l. for enterprise project status. Section 2: The following local incentives, at the election of the City Council of the City of La Porte, are or may be made available to the nominated project or activity ofthe qualified business: a) The City may abate taxes on the increase in value of real property improvements and eligible personal property that locate in a designated enterprise zone for up to 5 years, to the extent eligible for tax abatement under state law and city ordinances. The level of abatement shall be based upon capital investment, and the extent to which the business receiving the abatement creates jobs for qualified employees, in accordance with the City of La Porte Tax Abatement Guidelines and Criteria, Chapter 66 of the La Porte Code of Ordinances, and with "qualified employee" being defined by the Act. b) The City may, as allowed by law, provide business and industrial development services, including: 1) Grants to eligible companies through the city's Type B sales tax corporation; 2) Chapter 380 tax rebates for projects which significantly enhance the city's tax base; 3) Freeport exemption on property tax for employer's inventory that is shipped outside of Texas; 4) has established a Tax Increment Reinvestment Zone; 5) provision of publicly owned land for development purposes, including residential, commercial, or industrial development; 6) creation of special one-stop permitting and problem resolution centers or ombudsmen; or 7) promotion and marketing services. c) The City may, as allowed by law, provide regulatory relief to businesses, including: 1) zoning changes or variances; 2) exemptions from unnecessary building code requirements, impact fees, or inspection fees; or 3) streamlined permitting. d) The City may, as allowed by law, provide enhanced municipal services to businesses, including: 1) improved police and fire protection; 2) institution of community crime prevention programs; or e) The City may, as allowed by law, provide improvements III community facilities, including: 1) capital improvements in water and sewer facilities; 2) road repair; or 3) creation or improvement of parks. f) The City may, as allowed by law, provide job training and employment services to businesses, including: 1) retraining programs; 2) literacy and employment skills programs; 3) vocational education; or 4) customized job training. Section 3: Section 4: Section 5: Section 6: Section 7: Section 8. The enterprise zone areas within the City are reinvestment zones III accordance with the Texas Tax Code, Chapter 312, Section 312.203. The City of La Porte City Council directs and designates Stacey Osborne as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. The City finds that INVISTA S.a r.l. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Texas Enterprise Zone Act on the following grounds: (a.) INVISTA S.a r.l. is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction, located outside of an enterprise zone and at least thirty-five percent (35%) of the business' new employees will be residents of an enterprise zone or economically disadvantaged individuals; and (b.) There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities in the area; and (c.) The designation of INVISTA S.a r.l. as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. The enterprise project shall take effect on the date of designation of the enterprise project by EDT and terminate on June 1, 2015 (not less than one year, or more than five (5) years after the date of designation). Should any section or part of this ordinance be held unconstitutional, illegal, or invalid, or the application to any person or circumstance for any reasons thereof ineffective or inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or part shall in no way affect, impair or invalidate the remaining portions thereof; but as to such remaining portion or portions, the same shall be and remain in full force and effect and to this end the provisions of this ordinance are declared to be severable. 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 is 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 Chapter 551, Tx. Gov't 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. This Ordinance shall be effective after its passage and approval. PASSED AND APPROVED this the L ~ day of ~ CITY OF LA PORTE ;:?~I Mayor I ,2010. ATTEST: ff14Ukddtt City Secretary APPt:1~ ry(~ Assistant City Attorney 13 . CITY COUNCIL DRAINAGE REPORT May 10, 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 and submitted to Harris county Flood Control for final approval. All easements have been obtained except for one in Creekmont. Expect to obtain next month. Once HCFCD approval and final easements have been obtained the Project will go out for bid. · 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. The City Engineer is working on the FEMA Community Rating System (CRS) program. Once all buyouts in the area have been completed, the city will submit an application to lower the city's CRS rating, which could result in lower flood insurance premiums for residents. · Fairmont Park East - Fleetwood Drive. Design is underway. Expect to have final design completed in August. In-House Design and Construction of City-initiated Proiects. · South La Porte Bay Outfalls. Harris County has withdrawn oversight of this project. Staff met with the Texas department of Rural Affairs to restart the process. An environmental assessment is required, which should be completed by August. Tentative schedule for bidding is August. Staff met with the Area Engineer for TxDOT to discuss re-grading of ditches on South Broadway to this new outfall. Based on the survey, no improvements are needed. The additional outfall identified on Jefferson from Bayshore Drive to the bay has been completed. · F-216 Regional Detention Proiect. Clearing of F-216 regional detention is still approximately 60% complete. TxDOT has advised that the fill from this Project is not meeting specification for use in the Wharton Weems Overpass Project. At this time, excavation has been halted until TxDOT determines if the fill can continue to be used. 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 B106-05, Arizona from E Street to Park, South 3rd Street from Fairmont Parkway to the WWTP and several side channels off South 8th. Survey is 60% complete. Design of improvements and bidding to follow. . Coordination with Harris County Flood Control District. - HCFCD has awarded the F101 de-silting contract from the Exxon pipeline corridor to Lomax School Road. Still awaiting mobilization. In-House Drainage Maintenance Activities. . Bay Colony. Maintenance cleaning of Bay Colony Drive and all side streets is complete. The new underground system is under construct 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. This project is 40% complete. This is the last of the improvements for Bay Colony. . North and South Shady Lane. City has received the signed easement for North Shady Lane. Quotes are being solicited for construction - material has been ordered and received. Expect to complete construction by next month. Survey, to be followed by design, is underway to provide sheet flow in lieu of underground drainage on Broadway and Sunrise into the Bayport Channel. . In-Fill Drainage. Cleaned ditches in various areas of the city. Currently concentrating in the area bounded by South 8th, Main, Broadway and Fairmont Parkway. This area will be completed within the next month. The next area scheduled for maintenance cleaning is the Spenwick area. Several isolated problems have been identified and will be addressed during the work. 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. This problem has been corrected, and the outfall is functioning. . Total Drainage Maintenance Completed This Period o Cleaning of Ditches 7,355 LF o Resetting culverts 200 LF o Storm Sewer Maintenance/cleaning 2,904 LF o Rebuilt 3 inlet structures