Ordinance No. 8,95720000727 -5
ORDINANCE NO. 8957
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO
EXECUTE AND THE CITY CLERK TO ATTEST TO A PROFESSIONAL
SERVICES AGREEMENT WITH RICHARD A. PEEBLES, P.C., AND
MEHAFFY & WEBER, A PROFESSIONAL CORPORATION, TO TAKE
APPROPRIATE LEGAL ACTION TO RECOVER DAMAGES RELATING TO
THE DESIGN, DEVELOPMENT, CONSTRUCTION AND OVERSEEING
THE CONSTRUCTION AND DEVELOPMENT OF PHASE I OF BAYLAND
PARK PROJECT, WHICH INCLUDES THE RESTAURANT, MARINA AND
SHIPS STORE; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
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 of the City of Baytown to execute and the City Clerk to attest to a
professional services agreement with Richard A. Peebles, P.C., and Mehaffy & Weber, a
Professional Corporation, to take appropriate legal action to recover damages relating to the
design, development, construction and overseeing the construction and development of Phase I
of Bayland Park Project, which includes the restaurant, marina and ships store. A copy of said
contract is attached hereto, marked Exhibit "A," and made a part hereof for all intents and
purposes.
Section 2: 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 27th day of July, 2000.
C
PE E C. ALFARO, Mayor
GAR W. ITH, City Clerk
- ..APPROVE-D,AS: TO FORM:
JfAACIO RAMIREZ, 8W, City Attorney
c: klh253\ CityCouncil \Ordinances\PeeblesOrdinance
d: \MyDocuments\ Council \99- OOVuly\PeeblesOrdinance
EMPLOYMENT CONTRACT
We, the duly elected City Council of the City of Baytown (the "Client") do hereby exclusively
retain the law office of Richard A. Peebles, P.C. and Mehaffy & Weber, a Professional Corporation
(collectively referred to as the "Firm") as the attorneys to represent the Client's interest in seeking
recovery in connection with the Client's claim against Senterra Development L.L.C., Wilson
Architectural Group, Turner Construction Company, any architects, engineers or subcontractors of
said parties and any other appropriate parties regarding the failure of Senterra Development L.L.C.,
Wilson Architectural Group, Turner Construction Company, and such other parties to properly design,
develop, construct, and oversee the construction and development of the project known as the Bayland
Park and Marina owned by the Client (the "Claim").
The Firm is authorized to do everything that, in its discretion, is necessary for the purpose of
obtaining a recovery in connection with the Claim. This contingent fee agreement is being entered into
to provide for the payment of attorneys' fees and the reimbursement of expenses incurred by the Firm
in connection with the professional services rendered by the Firm in this matter. Calculation of the
attorneys' fee for professional services shall be based upon "total monies and benefits recovered".
"Total monies and benefits recovered" includes all money received as a result of the prosecution of this
claim, paid for whatever purpose, including, but not limited to, actual damages, consequential damages,
punitive damages, attorneys' fees, and money paid for any other purpose as a result of an award of a
jury, a judgment, or a negotiated settlement between the parties not reduced by any offsets recovered
or awarded to be applied toward debts for which the Client may be liable in any capacity. Benefits
recovered shall also include the reasonable value of the cost of construction to repair or correct the
defects in construction or design that are performed as a result of the litigation initiated by the Firm
pursuant to this contract.
The Firm is hereby assigned a 25% percent interest in the Claim, and the Firm is to be paid
25% percent of total monies and benefits recovered by reason of the Claim if the Claim is settled before
suit is filed. If suit is filed in this matter, the Firm is hereby assigned a 35% percent interest in the Claim
and is to be paid 35% percent of total monies and benefits recovered by reason of the Claim which
percent remains the same during further representation of the Client concerning the Claim by the Firm.
The Firm is authorized to incur expenses that, in its discretion, are reasonable and necessary
expenses in connection with seeking a recovery for the Claim. The Firm will submit proposals for
expenses of experts and/or consultants to the Client for approval, prior to incurring such expenses, if it
is estimated that such expenses will exceed $5,000.00. These expenses to prepare for and proceed to
trial include obtaining expert witnesses and/or consultants and authorizing these experts and/or
consultants to perform professional services designed to determine and assess liability and damages, to
file suit and incur other court costs, to incur costs for original and copies of depositions, to authorize
travel by Firm members and others by air and rental vehicle, to incur expenses for lodging and meals
while traveling more than 100 miles from Baytown, Texas, to incur copying expenses from Third
Parties and whatever other expenses are deemed by the Firm as reasonable and necessary expenses for
the successful prosecution of the Claim, which said expense shall be paid directly by the Client to the
provider or reimbursed on a monthly basis to the Firm for expenses paid by the Firm. All other
expenses including long distance telephone charges, FAX charges, expenses for copying within the
Firm, travel expense within 100 miles of Baytown, Texas including expenses for meals and lodging and
other miscellaneous expenses shall be paid directly by the Firm ("other expenses"). In the event no
monies or benefits are recovered as a result of the Claim, all other expenses will be borne by the Firm.
However, in the event a recovery is made on the Claim, all other expenses incurred by the Firm in
connection with the Claim will be reimbursed to the Firm out of that portion of the proceeds of the
Claim remaining after the Firm has been paid its assigned percentage interest in the Claim. That
portion of the total monies and benefits recovered remaining after, first, deducting the percentage of
the Claim assigned to the Firm, and, second, deducting the other expenses incurred and reimbursing
that amount to the Firm, shall be paid to the Client as its share of the recovery for the Claim.
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If the Firm decides that this case cannot be pursued to the mutual benefit of the Client and the
Firm, then the Firm reserves the right to withdraw as counsel and reassign their portion of the cause of
action to the Client. Therefore, the Firm is hereby authorized to withdraw as counsel in this matter
after providing thirty (30) days' written notice to the Client of such intention to withdraw as counsel.
In the event of reassignment of the Claim by the Firm, if the Client retains other counsel or represents
its own interests to prosecute this Claim and subsequently recovers monies or benefits, the Client is
obligated to pay the Firm no fee for their professional services, but is obligated to reimburse the Firm
for other expenses incurred by the Firm, up to the extent of any recovery made in connection with the
Claim.
The Client has asked the Firm to represent the Client in connection with this Claim, and the
Client was not solicited by the Firm in any manner.
The Client represents and warrants that the Client is authorized to enter into this Employment
Contract and that no portion of this Claim is presently assigned to any other person or entity. The
Client further represents and warrants that the Client will cooperate fully with the Firm in seeking a
recovery for the Claim.
I HAVE READ AND FULLY UNDERSTAND THIS AGREEMENT.
SIGNED this aa. day of 2000.
CITY OF BAYTOWN
By: Monte Mercer
Title: Ci ty Manager
3
Attest:
/�L�` _-G'7//C
By: Gary W. Smith
Title: City Clerk
EMPLOYMENT ACCEPTED: RICHARD A. PEEBLES, P.C.
4001 Garth Rd., Suite 107
Baytown, TX 77521
By: \j,
N44
MEHAFFY & WEBER, P.C.
2615 Calder Avenue
P.O. Box 16
Beaumont, TX 77704