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    <TD class=3DTextSmall><A class=3DTextSmall=20
      href=3D"mailto:?subject=3DAn opinion from the Texas Judiciary =
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      <DIV class=3DSection1>
      <P class=3DMsoNormal><A name=3Da3><B><SPAN=20
      style=3D"FONT-SIZE: 13pt">Affirmed</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt"> and Opinion filed July 31, =
2007.</SPAN></B></P>
      <P class=3DMsoNormal><B><SPAN style=3D"FONT-SIZE: =
13pt"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal><SPAN style=3D"FONT-SIZE: =
13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt">In The</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: 'Old English Text =
MT'">Fourteenth=20
      Court of Appeals</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">____________</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">NO. <A=20
      name=3Da4>14-07-00084-CV</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">____________</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da5><B><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">THE CITY OF=20
      HOUSTON</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">, =
Appellant</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">V.</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da6><B><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">CLEAR=20
      CHANNEL OUTDOOR, INC.</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">, =
Appellee</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 2.85pt; TEXT-ALIGN: =
center"=20
      align=3Dcenter><SPAN=20
      style=3D"MARGIN-TOP: 0px; Z-INDEX: -2; LEFT: 0px; MARGIN-LEFT: =
96px; WIDTH: 624px; POSITION: absolute; HEIGHT: 4px"><IMG=20
      height=3D4 src=3D"" width=3D624></SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">On Appeal from the =
<A=20
      name=3Da7>334<SUP>th</SUP> District Court</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da8><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">Harris</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"> County, =
Texas</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Trial Court Cause =
No. <A=20
      name=3Da9>2002-48557</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 2.85pt; TEXT-ALIGN: =
center"=20
      align=3Dcenter><SPAN=20
      style=3D"MARGIN-TOP: 0px; Z-INDEX: -1; LEFT: 0px; MARGIN-LEFT: =
96px; WIDTH: 624px; POSITION: absolute; HEIGHT: 4px"><IMG=20
      height=3D4 src=3D"" width=3D624></SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 7.35pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">O P I N I=20
      O N</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Appellant,=20
      the City of Houston, filed a plea to the jurisdiction asserting =
that a=20
      contract to purchase a billboard from appellee Clear Channel =
Outdoor, Inc.=20
      (</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Clear=20
      Channel</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">) was not=20
      properly executed because it was not signed by the mayor and the=20
      controller as required by the Houston City Charter.&nbsp; Thus, =
the City=20
      argues, the contract does not fall within the limited waiver of=20
      governmental immunity for breach-of-contract claims as set forth =
in=20
      section 271.152 of the Texas Local Government Code.&nbsp; <I>See =
</I><SPAN=20
      style=3D"TEXT-TRANSFORM: uppercase">Tex. Loc. =
Gov</SPAN></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: 'WP TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">t=20
      Code Ann.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =

      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
271.152=20
      (Vernon 2005).&nbsp;&nbsp; The trial court denied the plea, and we =
affirm=20
      the trial court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      ruling.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection2>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">I.&nbsp;=20
      Factual and Procedural Background</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">In 2002,=20
      the City was engaged in a street repair project.&nbsp; In =
connection with=20
      this project, Clear Channel received a letter dated January 8, =
2002 from=20
      the engineering firm of Lockwood, Andrews &amp; Newman, Inc. =
(</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">LAN</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">) on the=20
      City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      behalf.&nbsp; The letter, which bears the heading </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">CONSULTANT=20
      TO THE CITY OF HOUSTON,</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
provides=20
      in pertinent part:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">The City of Houston =

      Department of Public Works and Engineering, Real Estate Branch has =
been=20
      authorized by the proper authorities to acquire the =
above[-]captioned=20
      easement which is needed by the City for the ELLA BOULEVARD =
RECONSTRUCTION=20
      PROJECT ALONG WHEATLEY (from Pinemont to West Little York).&nbsp;=20
      </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Attached are the =
original and=20
      two (2) copies of the City of Houston Easement Purchase=20
      Agreement&nbsp;.&nbsp;.&nbsp;.&nbsp;. This is an offer to purchase =
the=20
      double[-]faced 6' X 12' billboard sign that you own which is =
located on=20
      the subject property.&nbsp; The sign must be acquired for =
construction=20
      purposes.&nbsp; As shown on this agreement, the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">s offer is in the =
amount of=20
      $21,600.00.&nbsp; This offer, of course, is being made subject to =
City=20
      Council approval.&nbsp;.&nbsp;.&nbsp;.&nbsp;This office will enter =
into=20
      negotiations and will make a separate offer to the fee owners; =
however,=20
      the offer to you is contingent upon our successfully negotiating =
with the=20
      fee owners.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftn1"=20
      name=3D_ftnref1><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[1]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A>&nbsp;=20
      In the event negotiations are unsuccessful in acquiring from both =
the=20
      owner and the lessee, then it may be necessary to acquire this =
parcel=20
      through eminent domain proceedings.&nbsp; </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Also=20
      attached is a copy of the appraisal=20
      report&nbsp;.&nbsp;.&nbsp;.&nbsp;obtained by the City for this=20
      parcel.&nbsp; This information is provided to you in accordance =
with=20
      Chapter 21, Subchapter B, Section 21.0111 of the Property=20
      Code.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection3>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Enclosed=20
      with the letter was a document entitled, </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">City of=20
      Houston Easement Purchase Agreement</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =

      (</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Purchase=20
      Agreement</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">)=20
      providing that, </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">FOR THE=20
      CONSIDERATION OF $21,600.00 SUBJECT TO CITY COUNCIL APPROVAL, =
GRANTOR=20
      HEREIN AGREES TO CONVEY THE BILLBOARD DESCRIBED BELOW TO THE CITY =
OF=20
      HOUSTON.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp; The=20
      agreement was signed by Marty Kobs, an employee of LAN. On January =
9,=20
      2002, Michelle Costa, president of Clear Channel</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s Houston=20
      Division, signed and returned the Purchase Agreement. </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">On April=20
      10, 2002, Mayor Lee Brown presided over a Houston City Council =
meeting at=20
      which the Council considered Motion 2002-0445 (</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">the=20
      Motion</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">),=20
      recommending that the City be authorized to condemn the property,=20
      including the billboard.&nbsp; The Motion provided, in pertinent=20
      part:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: =
justify"><B><U><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">RECOMMENDATION</SPAN></U></B><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">: =
(Summary)</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Authority be given =
through=20
      Council Motion to CONDEMN Parcel A99-105</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt 3.5in; TEXT-INDENT: -3in; =
TEXT-ALIGN: justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Amount and Source =
of=20
      Funding:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </SPAN></B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">To be determined by =

      CONDEMNATION proceedings Street &amp; Bridge Consolidated =
Construction=20
      Fund 437, Covered under Blanket Appropriation Ordinance 2001-553=20
      [signature illegible]</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: =
justify"><B><U><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">SPECIFIC=20
      EXPLANATION:</SPAN></U></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">The ELLA BOULEVARD =
(WHEATLEY)=20
      PAVING PROJECT (from Pinemont to West Little York) provides for=20
      right-of-way acquisition, engineering, and construction of two =
24-foot=20
      wide concrete roads with esplanade, curbs, sidewalks, and =
necessary=20
      underground utilities.&nbsp; These improvements will upgrade the =
existing=20
      roadway to major thoroughfare standards and improve traffic=20
      flow/circulation and drainage in the service area.&nbsp; This =
transaction=20
      involves the right-of-way acquisition of a rectangular tract of =
land=20
      located along the east line of Wheatley Street, being =
approximately 72=20
      feet in length, and approximately 42 feet in width, located at the =

      northeast corner of Wheatley Street and Homer Street.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">CONDEMNATION:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">The City desires to =
acquire=20
      3,023 square feet out of an otherwise vacant residential property =
improved=20
      with a billboard in the taking area.&nbsp; Condemnation is being=20
      recommended to clear title to this parcel due to an outstanding=20
      lien.&nbsp;.&nbsp;.&nbsp;.&nbsp;This valuation was reviewed and=20
      recommended for approval by a senior staff appraiser of this=20
      department.&nbsp; The breakdown is as =
follows:</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection4>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">. .=20
      .</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">LEASEHOLD=20
      INTEREST</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">OFF-PREMISES =
SIGN:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Double faced 6' X =
12' X 12'=20
      high outdoor off-premises advertising=20
      sign&nbsp;.&nbsp;.&nbsp;.&nbsp;.&nbsp;$21,600.00</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The double=20
      faced 6' X 12' X 12' high outdoor off-premises advertising sign =
will not=20
      be relocated.&nbsp; The sign will be purchased and then demolished =
at the=20
      time of construction.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The Motion=20
      passed with no dissenting votes.&nbsp; </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Clear=20
      Channel subsequently received a letter dated June 11, 2002 from =
the City=20
      of Houston, Public Works and Engineering Department, in which the=20
      Assistant Director of the Real Estate Department of Public Works =
and=20
      Engineering Department wrote:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Reference=20
      is made to the offer dated January 8, 2002&nbsp;(Attachment 1) =
regarding=20
      the two[-]faced off-premise billboard sign located on this parcel =
of=20
      land.&nbsp; Since this sign is not legally permissible and the =
city is not=20
      required or obligated to compensate an owner for an illegal =
improvement,=20
      we are hereby withdrawing our offer.&nbsp; You should therefore =
disregard=20
      any prior correspondence concerning this offer.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Clear=20
      Channel sued the City for breach of contract, and the City =
responded with=20
      a plea to the jurisdiction asserting immunity from suit.&nbsp; The =
trial=20
      court overruled the plea, and the City brought an interlocutory=20
      appeal.&nbsp; <I>City of Houston v. Clear Channel Outdoor, =
Inc.</I>, 161=20
      S.W.3d 3 (Tex. App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Houston=20
      [14th Dist.] 2004), <I>rev</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">d</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">, 197=20
      S.W.3d 386 (Tex. 2006) (per curiam).&nbsp; While the case was on =
appeal,=20
      the Legislature enacted sections 271.151</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">.160 of=20
      the Local Government Code.&nbsp; Under the terms of this =
legislation,=20
      local government entities waive immunity from suit for certain=20
      claims.&nbsp; The Texas Supreme Court reversed and remanded the =
case to=20
      give Clear Channel to present arguments under the new =
legislation.&nbsp;=20
      </SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection5>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">On remand,=20
      the City filed its second plea to the jurisdiction asserting =
immunity from=20
      suit.&nbsp; The trial court denied the second plea, and this =
agreed=20
      interlocutory appeal ensued.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftn2"=20
      name=3D_ftnref2><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[2]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A>=20
      </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">II.&nbsp;=20
      Issue Presented</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">In a=20
      single issue, the City contends the trial court erred in denying =
the=20
      City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s second=20
      plea to the jurisdiction.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftn3"=20
      name=3D_ftnref3><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[3]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A></SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">III.&nbsp;=20
      Standard of Review</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The=20
      plaintiff has the burden to plead facts affirmatively showing that =
the=20
      trial court has subject matter jurisdiction.&nbsp; <I>Tex.=20
      Ass</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">n of Bus.=20
      v. Tex. Air Control Bd.</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">, 852=20
      S.W.2d 440, 446 (Tex. 1993).&nbsp; Because jurisdiction is a =
question of=20
      law, the trial court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s ruling=20
      on a plea to the jurisdiction is subject to de novo review.&nbsp;=20
      <I>Mayhew v. Town of Sunnyvale</I>, 964 S.W.2d 922, 928 (Tex. =
1998).&nbsp;=20
      In performing this review, we do not consider the merits of the=20
      plaintiff</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s case,=20
      but focus instead on the plaintiff</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      pleadings and the evidence pertinent to the jurisdictional =
inquiry.&nbsp;=20
      <I>County of Cameron v. Brown</I>, 80 S.W.3d 549, 555 (Tex. 2002). =
We=20
      construe the pleadings liberally in favor of conferring =
jurisdiction.=20
      <I>&nbsp;Tex. Dep</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">t of=20
      Transp. v. Ramirez</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">, 74=20
      S.W.3d 864, 867 (Tex. 2002)(per curiam).&nbsp; Nevertheless, a =
waiver of=20
      immunity must be clear and unambiguous.&nbsp; <I>Tooke v. City of=20
      Mexia</I>, 197 S.W.3d 325, 332</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">33 (Tex.=20
      2006).&nbsp; In sum, we determine whether the plaintiff has =
pleaded a=20
      claim for which a governmental unit has waived immunity by reading =
the=20
      pleadings broadly and the alleged waiver =
narrowly.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection6>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">IV.&nbsp;=20
      Analysis</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Pursuant=20
      to section 271.152 of the Texas Local Government Code, </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">A local=20
      governmental entity that is authorized by statute or the =
constitution to=20
      enter into a contract and that enters into a contract subject to =
this=20
      subchapter waives sovereign immunity to suit for the purpose of=20
      adjudicating a claim for breach of the contract, subject to the =
terms and=20
      conditions of this subchapter.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">Tex.=20
      Loc. Gov</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: 'WP TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">t=20
      Code Ann.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =

      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
271.152=20
      (Vernon 2005).<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftn4"=20
      name=3D_ftnref4><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[4]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A>&nbsp;=20
      According to the definitional provisions of Section 271.151, a=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">[c]ontract=20
      subject to this subchapter</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
means a=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">written=20
      contract stating the essential terms of the agreement for =
providing goods=20
      or services to the local governmental entity that is properly =
executed on=20
      behalf of the local governmental entity.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;=20
      <I>Id.</I> </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;271.151(2).<A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftn5"=20
      name=3D_ftnref5><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[5]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A>&nbsp;=20
      Contracts may consist of multiple documents.&nbsp; <I>The Courage =
Co.,=20
      L.L.C. v. The Chemshare Corp.</I>, 93 S.W.3d 323, 333 (Tex.=20
      App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Houston=20
      [14th Dist.] 2002, no pet.).&nbsp; We review contracts as a whole, =
and=20
      consider writings together if they pertain to the same =
transaction, even=20
      if they were executed at different times.&nbsp; <I>City of Keller =
v.=20
      Wilson</I>, 168 S.W.3d 802, 811 (Tex. 2005).</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The City=20
      contends that the Purchase Agreement was not </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">properly=20
      executed on behalf of the local governmental entity</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
because=20
      it was not signed by the mayor and the city controller.&nbsp; In =
support=20
      of this argument, the City relies on the following provision of =
the=20
      Houston City Charter:</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection7>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">No=20
      contract shall be entered into until after an appropriation has =
been made=20
      therefore, nor in excess of the amount appropriated, <I>and no =
contract=20
      shall be binding upon the city unless it has been signed by the =
mayor and=20
      countersigned by the controller</I>, and the expense thereof =
charged to=20
      the proper appropriation, and whenever the contract charged to any =

      appropriation equals the amount of said appropriation, no further=20
      contracts shall be countersigned by the controller.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">City=20
      of Houston Charter</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">, art. II,=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
19 (Act=20
      of March 18, 1905, 29th Leg., R.S., ch. 17, art. II, </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
1, 1905=20
      Tex. Spec. Laws 131, 131, <I>amended</I> Jan. 27, 1968, =
<I>amended</I>=20
      Aug. 14, 1982) (emphasis added).&nbsp; </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Clear=20
      Channel responds that these requirements do not apply to this =
case, and=20
      points to another provision of the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      Charter:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Every=20
      ordinance, resolution or motion of the City Council shall, before =
it takes=20
      effect, be presented to the Mayor for&nbsp; its approval and=20
      signature.&nbsp; If the Mayor shall fail to sign any ordinance, =
resolution=20
      or motion within five days after adoption, it shall nevertheless =
be in=20
      full force and effect as if he had signed the same.&nbsp; =
</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Id.</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">, art. VI,=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
6=20
      (<I>added by amendment</I> August 15, 1942).&nbsp; Here, the City =
passed=20
      the Motion to condemn the property, and although there is no =
indication=20
      that the Motion was signed by the mayor, it was nevertheless in =
full force=20
      and effect as if it had been signed.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection8>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The=20
      adoption of this Motion was the last step needed to complete the =
written=20
      contract between the parties.&nbsp; The Purchase Agreement set =
forth the=20
      essential terms of the contract, and it was executed by =
</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Marty=20
      Kobs, ROW Project Manager, Lockwood, Andrews &amp; Newman, Inc.,=20
      Consultant to the City of Houston.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp; It=20
      is undisputed that LAN purported to act on the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s behalf,=20
      and the City does not contend that LAN</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s actions=20
      were unauthorized.&nbsp; We further note that Section 271.152 does =
not=20
      require that the contract at issue be properly executed by the=20
      governmental entity; rather, the requirements of the statute are =
satisfied=20
      if the contract was properly executed <I>on behalf of </I>the=20
      entity.&nbsp; Moreover, the City stated in its letter of June 11, =
2002=20
      that </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">we are=20
      hereby withdrawing our offer.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;=20
      Thus, it acknowledges that the signer executed the Purchase =
Agreement on=20
      the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      behalf.&nbsp; The City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      contention that the signatures of the mayor and the city =
controller are=20
      required arguably conflates the issue of whether the contract is =
binding=20
      under the charter</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">a question=20
      that goes to the merits of the case</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">with the=20
      issue of whether it was properly executed on the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      behalf.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftn6"=20
      name=3D_ftnref6><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-FAMILY: Shruti"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">[6]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A>=20
      </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The City=20
      argues that the Motion approved a recommendation to condemn the =
property,=20
      but did not approve or authorize a contract.&nbsp; Condemnation, =
however,=20
      is not required when the parties agree on the amount to be paid in =
damages=20
      for the property.&nbsp; <SPAN style=3D"TEXT-TRANSFORM: =
uppercase">Tex. Prop.=20
      Code Ann.</SPAN> </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;21.012(a)=20
      (Vernon 2004).&nbsp; Here, Clear Channel had already accepted the=20
      City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s=20
      conditional offer to pay $21,600.00 for the billboard, subject to =
City=20
      Council approval; thus, there was no need to litigate =
damages.&nbsp; The=20
      Motion also contains the remaining essential terms of the =
contract, and=20
      points out that the valuation of $21,600.00 for the billboard =
</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">was=20
      reviewed and recommended for approval by a senior staff=20
      appraiser</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
of the=20
      Department of Public Works and Engineering.&nbsp; </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">V.&nbsp;=20
      Conclusion</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">We=20
      conclude that, taken together, the Purchase Agreement and the =
Motion=20
      constitute a written contract as that term is used in section =
271.151 of=20
      the Local Government Code.&nbsp; On the record before us, we =
overrule the=20
      sole issue presented by the City and hold that the trial =
</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection9>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">court did=20
      not err in denying the City</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s plea to=20
      the jurisdiction.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">/s/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      Eva M. Guzman</SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Justice</SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Judgment=20
      rendered and Opinion filed July 31, 2007.</SPAN></P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">Panel=20
      consists of Chief Justice Hedges and Justices Hudson and=20
      Guzman.</SPAN></P></DIV>
      <DIV><BR clear=3Dall>
      <HR align=3Dleft width=3D"33%" SIZE=3D1>

      <DIV id=3Dftn1>
      <P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt; TEXT-ALIGN: =
justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftnref1"=20
      name=3D_ftn1><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[1]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; The parties do not contend that =
the City=20
      failed to acquire the property from the fee =
owners.</SPAN></P></DIV>
      <DIV id=3Dftn2>
      <P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt; TEXT-ALIGN: =
justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftnref2"=20
      name=3D_ftn2><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[2]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; After the second plea was filed =
but before=20
      it was heard, Clear Channel amended its petition a third time to =
add=20
      federal takings claims and a claim for tortious =
interference.&nbsp; That=20
      plea has not yet been heard, and those claims are not before us.=20
      </SPAN></P></DIV>
      <DIV id=3Dftn3>
      <P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt; TEXT-ALIGN: =
justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftnref3"=20
      name=3D_ftn3><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[3]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; The full title of the document is =

      Houston</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">s Second Plea to the Jurisdiction and, =
in the=20
      Alternative, No-Evidence and Traditional Motions for Summary=20
      Judgment.&nbsp; Our references to the second plea to the =
jurisdiction=20
      encompass these alternative motions for summary =
judgment.</SPAN></P></DIV>
      <DIV id=3Dftn4>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftnref4"=20
      name=3D_ftn4><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[4]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; This section applies to claims =
that arise=20
      before its effective date of September 1, 2005:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 0pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 11pt">only if sovereign immunity has not been =
waived=20
      with respect to the claim before the effective date of this =
Act.&nbsp; A=20
      claim that arises under a contract executed before the effective =
date of=20
      this Act and with respect to which sovereign immunity has been =
waived is=20
      governed by the law in effect on the date the contract was =
executed, and=20
      the former law is continued in effect for that purpose.</SPAN></P>
      <P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 11pt">Act of May 23, 2005, 79th Leg., R.S., =
ch. 604,=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> 2, 2005 Tex. Gen. Laws 1548,=20
      1549.</SPAN></P></DIV>
      <DIV id=3Dftn5>
      <P class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt; TEXT-ALIGN: =
justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83672#_ftnref5"=20
      name=3D_ftn5><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[5]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp;&nbsp;&nbsp; A </SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">local governmental entity</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> includes a municipality.&nbsp; =
<I>Id.</I>=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> 271.151(3)(A).</SPAN></P></DIV>
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justify"><A=20
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class=3DMsoFootnoteReference><SUP><SPAN=20
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11pt">[6]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; The City does not contend that =
LAN lacked=20
      actual or apparent authority to extend the purchase offer to Clear =

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      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">s actions were otherwise=20
      =
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