Ordinance No. 8,716991014 -2
ORDINANCE NO. 8716
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE
CITY CLERK TO ATTEST TO A RELEASE AND SETTLEMENT
AGREEMENT WITH, LONE STAR BUILDING,- LTD., -AND -PACER
DEVELOPMENT CORPORATION PERTAINING TO THE CITY OF
BAYTOWN'S ASSUMPTION OF CERTAIN OBLIGATIONS OF SAN
JACINTO PLACE MUNICIPAL UTILITY DISTRICT NOS. 1, 2, 3, AND 4
UPON ANNEXATION; AUTHORIZING PAYMENT IN THE SUM OF ONE
HUNDRED TWENTY -NINE THOUSAND NINE HUNDRED THREE AND
11 /100 DOLLARS ($129,903.11); AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
WHEREAS, Lone Star Building, Ltd., and Pacer Development Corporation (collectively
referred to as "Claimants ") purportedly entered into agreements with San Jacinto Place
Municipal Utility District Nos. 1, 2, 3, and 4, (collectively, whether singular or plural, the
"MUD ") on or about March 14, 1984, for the construction and purchase of utility facilities and,
in general, the development of the MUD; and
WHEREAS, Claimants assert that they have expended certain funds in connection with
the MUD and the construction of water and sewer facilities in the area serviced by the MUD; and
WHEREAS, the City of Baytown (the "City ") annexed all of the area in the MUD on
August 26, 1999; and
WHEREAS, on such date, the City assumed all of the assets and obligations of the MUD
pursuant to Section 43.075 of the Texas Local Government Code; and further, the City became
obligated to reimburse Claimants for certain expenditures made in connection with the MUD
pursuant to Section 43.0715 of the Texas Local Government Code; and
WHEREAS, Claimants have agreed to accept a total of ONE HUNDRED TWENTY -
NINE THOUSAND NINE HUNDRED THREE AND 11 /100 DOLLARS ($129,903.11), from
the City, as payment in full for any and all outstanding claims that may exist for reimbursement
under Section 43.0715 of the Texas Local Government Code or which could exist arising out of
or in any way connected with Claimants' work or services rendered to or on behalf of the MUD;
NOW THEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes
and directs the City Manager and the City Clerk of the City of Baytown to execute and attest to
the Release and Settlement Agreement with Lone Star Building, Ltd., and Pacer Development
® Corporation. A copy of said agreement is attached hereto, marked Exhibit "A," and made a part
hereof for all intents and purposes.
991014 -2a
® Section 2: That the City Council of the City of Baytown authorizes payment to
Claimants in the amount of ONE HUNDRED TWENTY -NINE THOUSAND NINE
HUNDRED THREE.AND 11 /.100 .DOLLARS ($129,903.11).
Section 3: This ordinance shall take effect immediately from and after its passage by
the City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the
City of Baytown this the 14th day of October, 1999.
Aet6 C-
PETE C. ALFARO, Mayor
ATTEST:
��� " �- -? -/'/�
-e�
EILEEN P. HALL,, City Clerk
APPROVED AS TO FORM:
ACIO RAMIREZ, City Attorney
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2
RELEASE AND SETTLEMENT AGREEMENT
STATE OF TEXAS §
COUNTY OF HARRIS §
WHEREAS, the Parties to this Release and Settlement Agreement ( "Release" or "Agreement ") are
Lone Star Building, Ltd., and Pacer Development Corporation, hereinafter collectively referred to as
"Claimants," and the City of Baytown, Texas, along with its officers, agents, and employees, hereinafter
collectively, whether singular or plural, referred to as "City "; and Claimants and City being collectively
referred to as the "Parties;" and
WHEREAS, Claimants purportedly entered into agreements with San Jacinto Place Municipal
Utility District Nos. 1, 2, 3, and 4, collectively referred to herein, whether singular or plural, as the
"MUD," on or about March 14, 1984, for the construction and purchase of utility facilities and, in general,
the development of the MUD; and
WHEREAS, Claimants assert that they have expended certain funds in connection with the MUDs
and the construction of water and sewer facilities in the area serviced by the MUDS.
WHEREAS, the City annexed all of the area in the MUD on August 26, 1999; and
WHEREAS, on such date, the City assumed all of the assets and obligations of the MUD pursuant
to Section 43.075 of the Texas Local Government Code, and the City became obligated to reimburse the
Claimants for certain expenditures made in connection with the MUDs pursuant to Section 43.0715 of the
Texas Local Government Code; and
WHEREAS, Claimants have agreed to accept a total of ONE HUNDRED TWENTY -NINE THOUSAND
NINE HUNDRED THREE AND 11 /100 DOLLARS ($129,903.11) (the "Settlement Amount "), from the
City, as payment in full for any and all outstanding claims that may exist for reimbursement under Section
43.0715 .of the Texas Local Government Code or which could exist arising out of or in any way connected
with Claimants' work or services rendered to or on behalf of the MUD; and
WHEREAS, mindful of the cost and expense associated with litigation, the Parties have agreed to
compromise and settle the claims on the terms set out in this Agreement; NOW THEREFORE
I.
RELEASE AND INDEMNITY
In consideration of the foregoing recitals, the mutual promises contained below, and
the payment of ONE HUNDRED TWENTY -NINE THOUSAND NINE HUNDRED
THREE AND 11/100 DOLLARS ($129,903.11) to Claimants, the receipt and
sufficiency of which is hereby acknowledged, Claimants do hereby, for their
successors, assigns, personal representatives, heirs, executors, and administrators
release, acquit, and forever discharge the City from any and all debts, damages,
claims, causes of action, suits, liabilities, and demands of whatever nature, known or
unknown, past, present, or future, whether contractual, statutory or in tort or
otherwise, which Claimants might now have or that might subsequently accrue by
Release And Settlement Anreement_ Page I EXHIBIT A
reason of Claimants' rights to reimbursement for expenditures made in connection
with the MUDs along with any matter or thing whatsoever and particularly growing
out of or in any way connected with, directly or indirectly, Claimants' work and /or
services to or on behalf of the MUDs, including, but not limited to, (1) any
contractual claims; (2) any claims arising out of the reimbursement. provisions set
forth in Section 43.0715 of the Texas Local Government Code; (3) any and all
existing or future common laws, statutes, civil rights, or constitutional claims arising
out of or in connection with Claimants' expenditures on behalf of the MUDs; (4) any
tort claims of any nature arising out of or in connection with Claimants'
expenditures on behalf of the MUDs and (5) any and all existing or future rights and
claims, whether at law, in equity, in contract or otherwise, that have been or that
could have been asserted, to which reference is expressly made, regardless of the
negligence or culpability of the City (collectively the "Claims ").
II.
PURPOSE
It is expressly understood and agreed that the terms hereof are contractual and not merely recitals
and that the agreements herein contained and the consideration transferred is to compromise doubtful and
disputed claims, avoid litigation, and buy peace, and that no payment made nor releases or other
consideration given shall be construed as an admission of liability, all liability being expressly denied.
III.
ATTORNEY'S FEES
The Parties hereby agree to be responsible for their own attorney's fees as well as any and all other
costs and expenses incurred in connection with this Agreement and /or the Claimants' services to and /or
on behalf of the City and the MUDs. Claimants expressly waive any claim to seek attorney's fees under
any federal or state authority.
IV.
AGREEMENT READ AND UNDERSTOOD
Claimants represent and warrant that they have been given an opportunity to consider this
Agreement and to be fully advised by the counsel of their choosing regarding the meaning and the effect
of this Agreement, that they rely after consultation with their counsel wholly upon their own judgment,
belief, and knowledge of the nature and extent of the damages and injuries alleged and the liability
questions involved in the claim, and covenant that Claimants have not been influenced to any extent
whatsoever or induced to enter into this Agreement in reliance upon any statement, promise or
representation of City or any of the other party.
V.
AUTHORITY
® Claimants confirm that it has full authority to execute this Agreement. Furthermore, by their
respective officers' signatures hereinbelow, Claimants acknowledge that Claimants have read this
Agreement, and that Claimants fully understand the same, and that Claimants have executed the
Agreement of their own free will and accord. Claimants further represent and warrant that:
Release And Settlement Agreement, Page 2
® (a) Claimants have not conveyed, transferred, assigned, pledged or otherwise encumbered any
of their rights in the Claims and that all of their interests arising in connection with the
Claims are being completely released and discharged by this Agreement; and
(b) Claimants' officers are of legal age and legally and fully competent to enter into this
Agreement and are doing so only after full understanding of the meaning and intent of this
Agreement and all of its terms.
VI.
ENTIRE AGREEMENT
It is further expressly understood that by entering into this Release, the City makes no admission
of liability of any sort to Claimants, which liability is expressly denied. Instead, this Agreement
represents a full and complete settlement of any and all disputes among the Parties, to resolve once and
for all every disputed claim that Claimants have asserted or could assert against the City in connection
with the Claims. The City has not agreed to do or omit to do anything not expressly set forth in this
Agreement.
This Agreement contains the entire agreement between the Parties and constitutes the complete,
final and exclusive embodiment of their agreement with respect to the subject matter herein.
VII.
SEVERABILITY
If any provision, section, exception, subsection, paragraph, sentence, clause or phrase of this
Agreement shall for any reason be held unconstitutional, void or invalid, such invalidity shall not affect
the validity of the remaining provisions of this Agreement, which shall remain in full force and effect, and
to this end all provisions of this Agreement are declared to be severable.
VIII.
EFFECTIVE DATE
This Release shall become effective and enforceable immediately upon its execution by Claimants
and the City's delivery of the Settlement Amount.
IX.
CHOICE OF LAW AND VENUE
This Release shall in all respects be interpreted and construed in accordance with and governed by
the laws of the State of Texas and the City, regardless of the place of its execution or performance. The
place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas.
X.
HFAMNGS,
® The captions of the various articles of this Agreement are for convenience and ease of reference
only and do not define, limit, augment or describe the scope, content or intent of this Agreement or of any
part or parts of this Agreement.
Release And Settlement Agreement, Page 3
XI.
AMBIGUITIES
In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or
against any party hereto on the basis that such party did or did not author the same.
Signed on this the day of 0606 E r , 1999.
CLAIMANT
PACER DEVELOPMENT CORPORATION, a
Texas co o tion
By:
Signature
Leo B. Womack
Printed Name
President
Title
Pacer Development Corporation
Tax ID No. 74- 1876503
c/o Mr. Jeff Gilman
Wilbanks & Gilman, P.C.
710 N. Post Oak Road, Suite 400
Houston, TX 77024 -3812
Signed on this the " day of Ddmbu- 31999.
CLAIMANT
TONE STAR BANK BUILDING, LTD.,
a Texas limited partnership
By: Pacer Development,Co., a Texas
general partnership, General
Partner
Leo B. Womack
ge lilm n
Lone Star Building, Ltd.
Tax ID No. 76- 0089537
c/o Mr. Jeff Gilman
® Wilbanks & Gilman, P.C.
710 N. Post Oak Road, Suite 400
Houston, Texas 77024 -3812
Release And Settlement Agreement, Page 4
0 Signed on this the day of , 1999.
CITY
MONTE MERCER, City Manager
City of Baytown, Texas
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR., City Attorney
STATE OF TEXAS §
COUNTY OF HARRIS §
Before me, Rebecca J. Cefalu , the undersigned notary
public, on this day personally appeared Leo B. Womack ,
President of Pacer Development Corporation,
X known to me;
proved to me on the oath of ; or
proved to me through his/her current
{description of identification card or other document issued by the federal government or any state
government that contains the photograph and signature of the acknowledging person}
(Check one)
to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that
he /she executed the same for the purposes and consideration therein expressed; that he /she executed the
same as his/her free and voluntary act and deed after having it fully explained to him/her, and after having
read it fully, and after realizing the effect thereof to be a full and final release and discharge of the City of
Baytown and its officers, agents, and employees for any matter or thing dealt with in the foregoing
instrument; and that the same was executed by its officer or authorized agent without any threat, force,
fraud, duress, or representation of any kind by any person whomsoever; and that the said
Leo B. Wbrreck at the time of execution of the release was completely sober, sane and capable
Release And Settlement Agreement, Page 5
of understanding the character of his/her acts and deeds and was in complete charge of all of his/her
faculties and capable of executing this instrument and of understanding the significance of his/her acts.
SUBSCRIBED AND SWORN before me on this 7th day of October
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1
STATE OF TEXAS §
COUNTY OF HARRIS §
1999.
Z6tary P c in a for the State of
Texas
Before me, Rebecca J. Cefalu , the undersigned notary
public, on this day personally appeared George Gilman and Leo B. , Womack, Partners of Pacer
Development Co., general partner of Lone Star Building, Ltd.
X known to me;
proved to me on the oath of ; or
proved to me through his/her current
(description of identification card or other document issued by the federal government or any state
government that contains the photograph and signature of the acknowledging person)
(Check one)
to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that
he /she executed the same for the purposes and consideration therein expressed; that he /she executed the
same as his/her free and voluntary act and deed after having it fully explained to him/her, and after having
read it fully, and after realizing the effect thereof to be a full and final release and discharge of the City of
Baytown and its officers, agents, and employees for any matter or thing dealt with in the foregoing
instrument; and that the same was executed by its officer or authorized agent without any threat, force,
fraud, duress, or representation of any kind by any person whomsoever; and that the said
George Gilman and Leo B. Womack at the time of execution of the release was completely sober, sane and
capable of understanding the character of his/her acts and deeds and was in complete charge of all of
his/her faculties and capable of executing this instrument and of understanding the significance of his/her
acts.
SUBSCRIBED AND SWORN before me on this 7thday of October
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Release And Settlement Agreement, Page 6
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