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R2009-196 - 2009-12-14 RESOLUTION NO. R2009 -196 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AWARDING A BID FOR LANDSCAPE SERVICES ASSOCIATED WITH THE MAGNOLIA ROAD PROJECT (PHASE I). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City opened bids for landscape services associated with the Magnolia Road Project, and such bids have been reviewed and tabulated. Section 2. That the City Council hereby awards the bid to Westco Grounds Maintenance Company, in the amount of $266,443.10. Section 3. The City Manager or his designee is hereby authorized to execute a contract for landscape services associated with the Magnolia Road Project. PASSED, APPROVED and ADOPTED this the 14 day of December, A.D., 2009. TOM REID MAYOR ATTEST: N n�. n RL.4 SO NIA WEBB fit „J„.- DEPUTY CITY SECRETARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY • 8588 Katy Freeway u Suite 441 Houston,TX 77024 sib 713-463-8200 r>i information@knudsonservices.com December 4, 2009 City of Pearland 3519 Liberty Drive Pearland, TX 77581 Attention: Ms. Andrea DeKam Brinkley, PMP Project Manager Projects Department Reference: Magnolia Road Expansion-Phase 1 Landscape Development from Harkey Road to Veterans Drive and the John Hargrove Environmental Center _ Subject: Contract Award Dear Ms. Brinkley: Competitive bids for the City of Pearland-COP PN: T70041, Bid No. 1109-07 Magnolia Road Expansion-Landscape Development from Harkey Road to Veterans Drive and the John Hargrove Environmental Center were received and opened at 2:00 pm on November 19, 2009. Ten bids were received with Total Bid Prices ranging from $266,443.10 to $475, 622.64. Westco Grounds Maintenance submitted the low bid price of$266,433.10. Knudson, LP has tabulated and reviewed all of the bids submitted. Some of the bids had discrepancies as noted below. The bid form submitted by Shooter and Lindsey, Inc. contains the following discrepancy: 1. Bid Alternate Item 4- 1 Gallon Shrub-John Hargrove Environmental Center has a quantity of 564 at a unit price of$4.25 which totals$2,397.00. Shooter and Lindsey,Inc. had a total of $2,201.50 forr this bid item. This results in a corrected TOTAL BID PRICE of$286,636.47 The bid form submitted by HLS Enterprises contains the following discrepancy: 1. Bid Item 5-65 Gallon Tree has a quantity of 58 at a unit price of$211.88 which totals $12,289.04. HLS Enterprises had a total of$12,288.99 for this bid item. This results in a corrected TOTAL BID PRICE of$294,905.79 The bid form submitted by Semarck Landscape Services, Inc. contains the following discrepancy: 1. Subtotal Base Bid Items should equal $319,926.13. Semarck Landscape Services, Inc has a Subtotal Base Bid Items of$318,926.13. 1 This results in a corrected TOTAL BID PRICE of$415,452.13 The bid form submitted by Martin Landscape Management, Inc. contains the following discrepancies: 1. Bid Item 6—45 Gallon Tree has a quantity of 128 at a unit price of$332.00 which totals $42,496.00. Martin Landscape Management, Inc. had a total of$42,946.00 for this bid item. 2. Bid Alternate Item 3—3 Gallon Shrub-John Hargrove Environmental Center has a quantity of 1,227 at a unit price of$14.70 which totals$18,036.90. Martin Landscape Management, Inc. had a total of$18,036.00 for this bid item. This results in a corrected TOTAL BID PRICE of$475,622.64 No discrepancies were found in the other bids submitted. The discrepancies noted do not change the order of bidders. The following is a list of the corrected bids for the above referenced project. Only the Subtotal Base Bid Items and Total Bid with Alternates are listed. They are listed from low to high. Subtotal Base Bid Price: Westco Grounds Maintenance $196,250.00 Boyer, Inc. $208,362.75 Shooter and Lindsey, Inc. $217,965.16 Bio Landscape & Maintenance, Inc. $223,247.59 HLS Enterprises $229,135.70 Landscape Contracting and Irrigation $260,087.20 Christison Landscape Inc. $290,465.18 Landscape Art, Inc. $314,473.22 Semarck Landscape Services, Inc. $319,926.13 Martin Landscape Management Inc. $344,101.52 Total Bid Price with Alternatives: Westco Grounds Maintenance $266,443.10 Boyer, Inc. $283,684.80 Shooter and Lindsey, Inc. $286,636.47 HLS Enterprises $294,905.79 Bio Landscape & Maintenance, Inc. $306,524.70 Landscape Contracting and Irrigation $332,045.60 Christison Landscape Inc. $374,706.58 Semarck Landscape Services, Inc. $415,452.13 Landscape Art, Inc. $435,451.40 Martin Landscape Management Inc. $475,622.64 Upon review of these bids, phone conversations with references, and past project experience, we recommend that the City of Pearland accept the Total Bid Price with Alternates from Westco Grounds Maintenance, in the amount of$266,433.10. • • Attached is a list of the corrected bids for the above reference project. Please call me at 713.932.8011 if you have any questions or comments. Sincerely, Knudson, LP Chris McBride Project Manager • • • Magnolia Road Expansion—Phase 1 REFERENCE STATEMENTS Completed Project: Call By: Chris McBride, Knudson, LP Reference: Ryko Development- Lisa Clark (713.952.0288) Project: Lakes on Eldridge North Scope: Landscape, Irrigation and Landscape Maintenance Construction Cost: $1,089.000 Comments: Work was completed on time and in budget. Plant material all met that specified, contractor was courteous and professional at all times. Company has been maintained as sole source landscape company for developer. Call By: Chris McBride, Knudson, LP Reference: Ryko Development- Lisa Clark (713.952.0288) Project: Lakes on Bella Terra Scope: Landscape, Irrigation and Landscape Maintenance Construction Cost: $1,053,000 Comments: Work was completed on time and in budget. Plant material all met that specified, contractor was courteous and professional at all times. Company has been maintained as sole source landscape company for developer. Call By: Chris McBride, Knudson, LP Reference: Swinerton Builders—Harold Lyles (713.986.1465) Project: UTMB-Galveston Scope: Landscape, Irrigation and Landscape Maintenance Construction Cost: $535,873 Comments: Work was completed in a timely manner and corrections were handled within a few weeks of being requested. Plant material matched that specified and installed per plans. Call By: Chris McBride, Knudson, LP Reference: Holcolm Properties—Jim Holcolm (713.843.0812) Project: Imperial Oaks Scope: Landscape, Irrigation and Landscape Maintenance Construction Cost: $558,200 Comments: Rob Eberle was the contact person on the project, and handled everything in a timely manner. Plant material was good and the on-going maintenance with Westco has been done well. Project was installed within budget. Call By: Susan Johnson, City of Pearland Projects Department Reference: TxDOT—Frank Munoz (281.795.7360) Project: TxDOT: Hwy 59—Various Locations Scope: Landscape, Irrigation and Landscape Maintenance 4 Construction Cost: $2,211,150 Comments: Mr. Monoz stated that Rob Eberle is the right person to deal with. Mr. Munoz had some issues with other personnel (no longer at Westco) but went straight to Rob and never had a problem after that. The maintenance phase is ongoing, but doesn't see contractor much. All plants were exactly as specified. Anytime anything needs attention, he sends an email and Westco is very responsive. Call By: Susan Johnson, City of Pearland Projects Department Reference: TxDOT—Frank Munoz (281.795.7360) Project: TxDOT: 1-10 West Scope: Landscape, Irrigation and Landscape Maintenance Construction Cost: $1,108,938 Comments: All material (trees and irrigation) exactly per plans and specs. Everything went well. Mr. Munoz stated that if any issues or questions arose, he just contacted Rob Eberle. The one thing he cautioned about was that maintenance requests be in writing by email to Mike Palmero who handles maintenance as phone calls to him rarely suffice. Call By: Susan Johnson, City of Pearland Projects Department Reference: TxDOT—Jimmy Bussey (281.932.2980) Project: TxDOT: Will Clayton Scope: Landscape, Irrigation and Landscape Maintenance Construction Cost: $758,671 Comments: Mr. Bussey stated that Westco knows what they're doing. He had few issues with them, but they were taken care of quickly and professionally. He stated that they are not a real big outfit but are real good. He did not have to reject any trees, shrubs, etc. and they came in on time and within budget. 5 • • • Exhibit"A" CONTRACTOR'S STATEMENT OF QUALIFICATIONS ("Statement") • Date of Contractor's Statement 1 1-15-2009 _Individual Westco Grounds Maintenance Co. , Inc. _Partnership Legal Name of Contractor Joint Venture • X-Corporation _Limited Liability Company Other(Please explain) Address 12350 Taylor Rd. Houston, TX 77041 Telephone 713-466-1822 Fax 713-466-7353 - • Federal Identification Number(El.or S.S.) 76-0237256 • I certify that all the information contained in this Statement is true,correct and complete and 1 am an authorized representative of Contractor and duly authorized to execute this statement. sy: � Name p ease print/type) Robert Eberle Title(please print/type) Vice—President • Contractor information and Experience Questionnaire • Organizational Background Type of Organization(circle one) Sole Proprietorship Partnership Corporation Limited Liability Company Other 1. Date of organizat on/incorporation: 19 87 2. Dunn and Bradstreet number: n/a 2.Principle place(s)of Business: 12350 Taylor pa, HOI3F,±can, mx 77f)41 • 4.PartnersJPrincipleslOwners(owning 10%or more): Kenneth Eberle 5.Officers: President Kenneth Eberle Vice President Robert Eberle Secretary n/a Treasurer n/a 6. How many years has the business been operating under its present name? 22 years a)Under what other names has the business operated? n/a b)If the answer to any of the following questions is"Yes",attach details including a list of creditors,amount owed each,amounts repaid resolution of proceedings,etc. Yes No X Has the business ever defaulted,declared bankruptcy,or undergone reorganization procedures? X Has a predecessor of the business defaulted,declared bankruptcy,or undergone reorganization procedures? X Are there presently any outstanding claims pending against your • business? x Has the business been involved in litigation within the past 5 years or is it currently involved in litigation? • ) CONSTUCTION EXPERIENCE: . 1.How many years of experience in construction work has the business had? As a general contractor: 22 years As a subcontractor: ?? years 2.What type of work does the business normally perform? Landscaping, Irrigation, Maintenance 3. Has the business or any owner,officer or partner or member of the business: Yes No X . Ever failed to complete a construction contract,forfeited a bid bond/proposal • guaranty,had liquidated damages withheld from its total compensation due on a contract,or refused to enter into contract fro work awarded to it? If yes,attach details,including name of project,contract amount,type of work, name and address of project engineer,contractor,and owner,when/where,and why. X Ever been cited or convicted for violation of any OSHA or State safety Law/regulation? If yes,attach details, including project name,project engineer,owner,when, where governing agency,and final disposition,of citation or conviction. 4.Attach a list of all the projects with construction cost greater than$500,000 that the business has completed within the last 5 years in the local area beginning with the most current and not to exceed the last ten • consecutive jobs, include the following information: • > Name• � project Maciko-k, Amountt • ➢ Type of work • > Percentage subcontracted Amount subcontracted Scheduled completion date > Date completed > Location,city,county,state ' Name,address and telephone number 1 Westco Co-Inwards!Ian chap°hte al tailor r, lrrlga!Ion and ilainlanauce WESTCO GROUNDS MAINTENANCE CO.,INC. REFERENCES AND PREVIOUS EXPERIENCE Lakes on Eldridge North Contract Amount: $1,089,000 Work: Landscape,Irrigation,Landscape Maintenance Subcontracted: 10%$108,900 Scheduled Completion: February 2007 Date Completed: February 2007 Location: Houston,Texas General: Ryko Development 2000 W Sam Houston#1525 Houston,TX 77042 Contact: Lisa Clark 713-952-0288 UTMB-Galveston Contract Amount: $535,873 Work: Landscape,Irrigation,Landscape Maintenance Subcontracted: 0 Scheduled Completion: September 2007 Date Completed: September 2007 Location: Galveston,Texas General: Swinerton Builders 55 Waugh Dr Houston,TX 77007 Contact: Harold Lyles 713-986-1465 Lakes of Bella Terra Contract Amount: $1,053,000 Work: Landscape,Irrigation,Landscape Maintenance Subcontracted: 8% $85,000 Scheduled Completion: January 2008 Date Completed: January 2008 Location: Galveston,Texas General: Ryko Development 2000 W Sam Houston#1525 Houston,TX 77042 Contact: Lisa Clark 713-952-0288 12350 Taylor Road Houston,TX 77041 (713)466-1822 Fax(713)466-7353 TX DOT 59 Various Contract Amount: $2,211,150 Work: Landscape,Irrigation,Landscape Maintenance Subcontracted: 5% $110,550 Scheduled Completion: June 2008 Date Completed: October 2008(2 year maintenance) Location: Houston,Texas General: Texas Dept of Transportation 14838 Northwest Fwy Houston,TX 77040 Contact: Frank Munoz 713-934-5999 Imperial Oaks Contract Amount: $558,200 Work: Landscape,Irrigation,Landscape Maintenance Subcontracted: 5% $27,910 Scheduled Completion: October 2008 Date Completed: October 2008 Location: Houston,Texas General: Holcolm Properties 1300 Post Oak#1110 Houston,TX 77056 Contact: Jim Holcolm 713-843-0812 TX DOT I-10 West Contract Amount: $1,108,938 Work: Landscape,Irrigation,Landscape Maintenance Subcontracted: 8% $88,715 Scheduled Completion: March 2009 Date Completed: March 2009 Location: Houston,Texas General: Texas Dept of Transportation 14838 Northwest Fwy Houston,TX 77040 Contact: Jeff Pilgrim 713-539-2468 TX DOT Will Clayton Contract Amount: $758,671 Worlc: Landscape,Irrigation,Landscape Maintenance Subcontracted: 9% $68,000 Scheduled Completion: April 2009 Date Completed: April 2009 Location: Houston,Texas General: Texas Dept of Transportation 16803 Eastex Fwy Humble,TX 77396 Contact: Robert Hill 281-319-6400 12350 Taylor Road Houston,TX 77041 (713)466-1822 Fax(713)466-7353 5.Attach a list of major construction projects the business has in process. Include the following information: > Name of project i1 • > Amount > Type of work L�— > Percentage completed > Schedule completion > Location(city,county,state) > Name,address, phone number > Project Engineer > Contractor(if subcontractor) > Owner 6.Provide resumes and list construction experience at the principal individuals of your organization,(include not only officers and principals of the organization, but also field superintendents who will be in charge of the work. Add additional sheets as needed. • Name Current Position Years with Co. Years of experience Kenneth Eberle Prg.3j enf 22 Robert Eberle Vic'—P e i r9ant 17 20 Becky Ratcliff Manager 13 20 Michael Palermo Manager 1 1_8 • 7.Attach a list of subcontractors that are anticipated to perform any portion of the work valued at$25,000 of the total bid or more. Include the following information: > Name Wr-M > Address > Work to be done > Percentage of contract >. Estimated amount of contract > Individuals responsible for work > References • Westco Conceal Jnndvr nlnarttanmr, lnl�orkrrrtadiftrinktima Work In Progress—As of November 15,2009 Westpark Tollway Landscaping Owner: Harris County Toll Road Authority Architect: Walter P.Moore&Assoc. Contract Amount: $1,397,763 %Complete: 75% Scheduled Date of Completion: October,2009 TX DOT S9 Various Owner: Texas Department of Transportation Architect: John Ethan Beeson Contract Amount: $2,21I,154.18 %Complete: 85% Scheduled Date of Completion: June 26,2010 NASA Road Bldg 20 Owner: NASA Johnson Space Center Architect: HOK,LP Contract Amount: $219,840 %Complete: 60% • Scheduled Date of Completion: December,2009 MDACC(CABIR) Owner: University of Texas MD Anderson Cancer Center Architect: P&W Architects Contract Amount: $239,413 %Complete: 70% • Scheduled Date of Completion: November,2009 Porter High School Owner: New Caney Independent School District Architect: Bay Architects,Inc. Contract Amount: $376,088 %Complete: 40% Scheduled Date of Completion: May,2010 Methodist Willowbrook Phase V Owner: The Methodist Hospital Architect: HOK,LP Contract Amount: $341,623 %Complete: 50% Scheduled Date of Completion: April,2010 12350 Taylor Road Houston,Texas 77041 (713)466-1822 (713)466-7353 8. List all banks with which the Contractor has done business during the past 5 years. List the current bank first Add additional sheets as needed. Bank Name Address Contact Tele hone Frost Bank 2211 Norfolk, Houston, TX Ed Michna 713-388-7685 9.Provide the following information regarding payment, performance and maintenance bonds. a.Name and address of Surety Company: Suretec, 952 Echo #450, Houston, TX 77024 b.Company file number n/a c.Authorized to do business in the state where the site is located? Yes d. Authorized to issue payment performance and maintenance bonds within the state where the Site is located? YeS e.Maximum amount of bond authorized to issue: 5,000,000.00 f. Rating(as listed in Best's Key Guide): A g.Financial size category(as listed in Best's Key Guide): VI I h. Name and address of agent and agency(company): Carroll Insurance, 1 4906 FM 529 Houston TX I. Does agent have appointment from insurance company authorizing agent to sign bonds?Yes j. Attach business financial statements including most recent income statement and balance sheet If most recent information available is unaudited, but business has audited statement available for an earlier period, include unaudited statement. Westco Commaraal Lmrdru+pahuralkrllou, In!gallon afdMHalnleumva Magnolia Road Expansion— City of Pearland Suppliers Name Contact Phone Twin Lakes Nursery Randa Langerud 800-965-5622 Magnolia Gardens Sales 936-931-9550 Enchanted Trees Jack 281-356-2754 Creekside Nursery George 713-265-4300 Tr7ple E Nursery Rob Eberle 713-203-2480 Just Trees Phil Kaiser 281-351-7583 Letco Brent McWaters 281-924-2943 John Deere Landscapes Mark Bayne 713-849-2700 San Jacinto Environmental 713-957-0909 Subcontractors Name Contact Phone Maxtlo—Meters Victor 713-892-9539 Miller Lights—Electrical Cody Miller 281-970-1400 12350 Taylor Road Houston,Texas 77041 (713)466-1822 (713)466-7353 • Magnolia Road Expansion-Landscape Development from Harkey Road to Veterans Drive and the JHEC • • eoh.duI.o651I $ - r. ,. : WESTCO GROUNDSMAINT.*' ."x BOYER.INC. •:'.'i- -.. ., - h1ARTIN lANDSCAPE.�''c s.. 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LE 40 1535 1446.00 13.00 n,aw.m 13.75 51,350.00 5..55 51,386.00 12.85 11.026.03 14,33 51.61280 Toe Root B.M., LF 1 500 120w 530000.63 16.00 ie0oo.w 4.55 36976.m 15.76 110.3,00 4ee 174003 11.25 Se 37,00 1hn 3 nm O 3 m n.of 1.0010$1043000 LS 1 010.00000 110000.00 11703130 11)031.00 460000 1480003 631970.00 54970.00 111304.1:0 111502.00 117,172.00 117.17200 Pay..end 030,66 r4 u lm.nar.. na.(6.31690n4) Ls 1 n00.00 nm.m nos. 53.56e.00 /8.350.00 1 103100 18.03600 15.975.0 15,97600 53.181.35 13.161.35 • La0050. bigtl10n' .. . ._ • ewMrn SO.Fr 222000 , wso 411 o0o.w w.25 +sssww 50.30 +6eaw.m 10.43 105160.00 w.4 179 MOO -__ 10.26 157.720. canearwm,P.0a.00 EA 2 4.w 10.00 12,45.00 ts,lm.w 12.46.00 w.e92.w 12,99103 158000 1635600 112 new 1156.0 1311380 -FFsmnrd aa.n Pve.m EA 3 51omw 11515w 14 785,00 1145300 435900 11 904 00 15952.00 1119550 46e0.w 1/537,97 17,513 eIm-COI Of P1.4m 01ma,9 tor 2n:n EA 3 4,776.00 4,3b.m 5104w _ 111696.m 4111.00 43.41.00 13,935.00 41 e95.00 11 054.00 55562.m t],46.w 4,66123 900m.8 b.I.r.w Pw 03.un4w sm- . 0.00.1.M FY1. Ew 2 uaw.m n.mo.m am 4.70300 4.3 00 1650. 12150.00 4.3w.w 470100 57615m 11 wan 4333.4 [Total Base Bid 8331,090.721[Total Base Bid 8196,260.001'Total Base Bid 8206,362.76[[Total $344,101.621[Total Base Bid S2.29,136.701'Total Base Bid $223,247.591 ald Memel.Item. ..Il l l.0 uaw.mna m an 4 4 u Elecxs OMLrnm Ga N&010mu1COmp1lmn Ls 1 ueslam u961o.m 111s10.00 nlsmm 1.17,74.00 117J400 ur.w0.m tn,ew.m -_ smzl - 118.24803 11e4.w 1.3.8.30- on.tUA • .u.n15134 n91u.F.Maud en T.F. . • aurae. 1 'twaw 1103610 6'J.nl.m 1x.911.w 6213600 4.196.m 61001000 510000.00 Sx.ettm 3x.m1.w 524.375.11 41.375.4 .. 3 Oa.9nu0-John MarOma Enr....Can.r FA-. 32n 6iam U2,Oee.m slam 40,1.10 4.05 4.916.m -. 114./e f4.wt.w 110.11 112.mib 18.20 Ib.I59.4 I0.86 John Maorn.E eWonn0.lG EA ass moo fe.lsem Silo - wne.b tl.w 4o 65.46 13.079. 4b fx.6m.m 57.63 live..Enl.mu,4lGmoG3Y Cl Ste 125.10 t12.1m.w +SMS 1301410 550.00 126.30000 403.21 15604/7/ 137.12 1 619,22618 1132.4 4asea.oe s020343...aemsalvor..07033 7$1011105011 so.Fr 1 4. w.m 17,000m 6.4 16.146.00 11.50 12100000 50.69 1050.00 1032 612.020.00 01,31 110,960.00 r` �`L a [Total Bid Alternate 3ea,340.201[Total Bid Alternate 370,1e3.101[Total Bid Alternate 376,322.e61[Total Bid Alternate 3131,621.121[Total Bid Alternate 366,770.001 Total Bid Alternate f33,277.111 - r- • Total Bid `� •x�11_ $419 630.92 [Total Bid 5266,443.101[Total Bid i293,664.601[Total Bid $476,622.64['Total Bid E294,906.79I`Total Bid $306]624.7, all� . 1 y �rFOP _ • |� — — — .■ . ?I / g \ | } ) ) \ " • " = " " } } § - \ 8 ; 28 E 18 E } . 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' ! , j• ' Ti ] New CONSIDERATION, AND, POSSIBLE ACTION.. _ RESOLUTION NO R200.9-205—A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING THE ISSUANCE OF TAX EXEMPT BONDS BY THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION Mr. Bill'E sen, City Manager:. I ' • AGENDA REQUEST BUSINESS OF THE CITY COUNCIL CITY OF PEARLAND, TEXAS AGENDA OF: 12-14-09 ITEM NO.: Resolution No. R2009-205 DATE SUBMITTED: DEPARTMENT OF ORIGIN: Administration PREPARED BY: Darrin Coker PRESENTOR: Bill Eisen REVIEWED BY: REVIEW DATE: SUBJECT: Southeast Texas Housing Finance Corporation (SETH) EXHIBITS: Resolution No. R2009-205 1 — Information EXPENDITURE REQUIRED: AMOUNT BUDGETED: AMOUNT AVAILABLE: PROJECT NO.: ACCOUNT NO.: ADDITIONAL APPROPRIATION REQUIRED: ACCOUNT NO.: PROJECT NO.: To be completed by Department: ❑ Finance ® Legal ❑ Ordinance ® Resolution EXECUTIVE SUMMARY SETH requires the City's approval to issue tax exempt bonds as part of the 2009 Single Family Mortgage Revenue Bond Program. The Program is part of the federal governments Homeowner Affordability and Stability Plan that uses federal funds to support low interest loans to first-time home buyers. A more detailed letter from SETH is attached for your review. The deadline for approval of the resolution is December 21, 2009. RESOLUTION NO. R2009-205 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING THE ISSUANCE OF TAX EXEMPT BONDS BY THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION. WHEREAS, pursuant to the Texas Housing Finance Corporations Act, Chapter 394, Texas Local Government Code (the "Act'), the creation of The Southeast Texas Housing Finance Corporation (the "Corporation") was approved by resolution of the governing bodies of each of the Texas counties of Austin, Brazoria, Chambers, Liberty, Matagorda, Walker, Waller and Wharton and the Texas cities of Baytown, Deer Park, Dickinson, La Marque, La Porte, League City, Pasadena, Santa Fe, Shoreacres, Texas City and Tomball (the "Local Governmental Units") , to provide a means of financing the cost of residential ownership and development that will provide decent, safe and sanitary housing for persons and families of low and moderate income; and WHEREAS, the Corporation desires and intends to issue its Single Family Mortgage Revenue Bonds (Guaranteed Mortgage-Backed Securities Program) Series 2009A (the "Bonds"), pursuant to the Act to defray, in whole or in part, the costs of purchasing or funding the making of home mortgages, in the aggregate principal amount not to exceed $24,549,050; and WHEREAS, Section 394.005 of the Act provides that said Act does not apply to property located within a municipality with more than 20,000 inhabitants unless the governing body of such municipality approves the application of said Act to that property; and WHEREAS, the effect of said Section 394.005 is that the proceeds of the Bonds may not be used to finance single family housing within the City of Pearland (the "City)without the approval of its governing body; and RESOLUTION NO. R2009-205 WHEREAS, the Corporation has requested the approval of the City Council of the City to allow mortgage loans for homes located in the City to be financed with the proceeds of the Bonds; and WHEREAS, it is the desire of the City Council of the City to make available to citizens of low and moderate income of this City loans financed by the proceeds of the Bonds since they provide favorable interest rates for first time buyers who qualify for such loans; and WHEREAS, the Corporation has requested the approval of governing body of the City to provide, with the proceeds of the issuance of the Corporation's Bonds, financing for home mortgages for homes in the City; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the recitals made above in the Resolution are hereby adopted in their entirety and incorporated herein as though set forth in full herein. Section 2. That the City Council hereby approves the application of the Act to property within the City and grants its approval to the Corporation for the use of proceeds of the Bonds to finance home mortgages for homes located within the City. Section 3. That it is officially found and determined that no provision of this resolution shall make the City of Pearland, Texas, this Council, or any officer, agent, employee, or official of the City of Pearland, Texas, liable in any respect whatsoever in regard to the Bonds, it being understood that the Bonds are solely to be repaid and secured from the sources described in the Indenture of Trust related thereto, none of which sources impose any liability whatsoever upon this City, this City Council, or the officers, agents, and employees of this City. 2 RESOLUTION NO. R2009-205 Section 4. That to indicate the City's desire to participate in this program, a copy of this resolution will be forwarded to The Southeast Texas Housing Finance Corporation. PASSED, APPROVED, AND ADOPTED this day of , A.D., 2009. TOM REID MAYOR ATTEST: YOUNG LORFING, TRMC CITY SECRETARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY 3 SETsi SOUTHEAST TEXAS HOUSING FINANCE CORPORATION December 7, 2009 Mayor Tom Reid 3519 Liberty Dr. Pearland,TX 77581 Re: The Southeast Texas Housing Finance Corporation's Single Family Mortgage Revenue Bond Program- Series 2009A Dear Mayor Reid: The Local Housing Finance Agencies have been unable to issue tax-exempt Mortgage Revenue Bonds for the past two years because of the absence of investors due to the financial market crisis. As you are aware,The Southeast Texas Housing Finance Corporation (SETH) has a very successful history in providing first-time homebuyers with competitive mortgage rates and down payment assistance for almost 28 years. As part of the Homeowner Affordability and Stability Plan announced by the Federal Government in February of this year, a program to support state and local housing finance agencies.(HFA's) began October 19, 2009. After taking eight(8) months to roll-out the program,we are caught in a time- crunch to complete the actions necessary to secure that the U.S. Treasury through Fannie Mae, Freddie Mac and the Federal Housing Finance Agency will purchase the tax-exempt bonds to make our program a reality because the authority for the Treasury Department to implement this program expires 12/31/09. The U.S.Treasury Department has allocated to SETH an amount of$24,549,050 to issue tax-exempt bonds for the 2009 Single Family Mortgage Revenue Bond Program. In order to meet the deadlines set by the Federal Government, SETH (and most agencies across the nation) must issue taxable bonds before December 23, 2009 and convert those to tax-exempt bonds in January 2010. It is a most difficult program to accomplish within the timelines, but a very needed program to assist our moderate income first-time homebuyers with the ability to make their dream of homeownership come true. In accordance with the Texas Housing Finance Corporation Act, cities with populations above 20,000 must approve of the proceeds of the bond issue to be used within your jurisdiction to make home mortgages. Therefore, please find enclosed four(4) copies of the municipality approval Resolution which must be completed and returned to office as soon as possible, but no later than December 21,2009. I know this time period is very short, but it is necessary in order for SETH to. complete the transaction and it be approved by the Texas Attorney General's Office. I will be very happy to discuss this very difficult program with you or answer any questions you or your staff have about the program. Do not hesitate to contact either myself or Nell Turk in our office. Please let us know of your ability to meet the timeline if there is difficulty. Sincerely, on ra iams Executive Director 11111 South Sam Houston Parkway East•Houston,Texas 77089 phone(281)484-HOME(4663) •fax(281)484-1971 •www.sethfc.com