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HomeMy WebLinkAboutAgenda Packet City Council - 05/21/2002CITY COUNCIL AGENDA "Corpus Christi Celebrating 150 Years" 1:45 p.m. Proclamation declaring May 19 -25, 2002 "Emergency Medical Services Week." AGENDA CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 1201 LEOPARD MAY 21, 2002 12:00 P.M. PUBLIC NOTICE - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. Members of the audience will be provided an opportunity to address the Council at approximately 5:30 p.m. or at the end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state your name and address. Your presentation will be limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Si ud. Desea dirigirse al Concilio y tree qua su ingles es limitado, habri un interprete ingles-espanol an todas las juntas del Concilio para ayudarie. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (at 361-880-3105) at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Samuel L. Neal, Jr. to call the meeting to order. B. Invocation to be given by Reverend Derrick Reeves, St. John's Baptist Church. C. Pledge of Allegiance to the Flag of the United States of America. D. City Secretary Armando Chapa to call the roll of the required Charter Officers. Mayor Samuel L. Neal, Jr. Mayor Pro Tem Bill Kelly Council Members: Brent Chesney Javier D. Colmenero Henry Garrett Rex A. Kinnison John Longoria Jesse Noyola Mark Scott City Manager David R. Garcia City Attorney James R. Bray, Jr. City Secretary Armando Chapa E. MINUTES: 1. Approval of Regular Meeting of May 14, 2002. (Attachment #1 ) Agenda Regular Council Meeting May 21, 2002 Page 2 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) F. EXPLANATION OF COUNCIL ACTION: For administrative convenience, certain of the agenda items are listed as motions, resolutions, or ordinances. If deemed appropriate, the City Council will use a different method of adoption from the one listed; may finally pass an ordinance by adopting it as an emergency measure rather than a two reading ordinance; or may modify the action specified. A motion to reconsider may be made at this meeting of a vote at the last regular, or a subsequent special meeting; such agendas are incorporated herein for reconsideration and action on any reconsidered item. G. EXECUTIVE SESSION: (12:00 p.m. -Approximately 1:00 p.m.) PUBLIC NOTICE is given that the City Council may elect to go into executive session at any time during the meeting in order to discuss any matters listed on the agenda, when authorized by the provisions of the Open Meeting Act, Chapter 551 of the Texas Government Code, and that the City Council specifically expects to go into executive session on the following matters. In the event the Council elects to go into executive session regarding an agenda item, the section or sections of the Open Meetings Act authorizing the executive session will be publicly announced by the presiding office. 2.a. Executive session pursuant to Texas Government Code Section 551.071 regarding Larry Young et al v. City of Corpus Christi, No. 01-647-C, 94th District Court, Nueces County, Texas, and Mary Collins et al v. City of Corpus Christi, No. 01-646-C, 94th District Court, Nueces County, Texas, with possible discussion and action related thereto in open session. 2.b. Executive session pursuant to Texas Government Code Section 551.071 regarding David Cook v. City of Corpus Christi, No. C-01- 341, United States District Court for the Southern District of Texas, Corpus Christi Division, with possible discussion and action related thereto in open session. 2.c. Executive session pursuant to Texas Government Code Section 551.071 regarding proposed Thomas J. Henry sign, with possible discussion and action related thereto in open session. Agenda Regular Council Meeting May 21, 2002 Page 3 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 2.d. Executive session pursuant to Texas Government Code Section 551.071 regarding cable television franchise issues, with possible discussion and action related thereto in open session. 2.e. Executive session pursuant to Texas Government Code Sections 551.071, 551.072 and 551.087 regarding the South Wharf Project in the Corpus Christi Marina, with possible discussion and action related thereto in open session. H. BOARDS & COMMITTEE APPOINTMENTS: (Attachment #3) 3. Animal Control Advisory Committee * Coastal Bend Health Facilities Development Corporation * Electrical Advisory Board Water Shore Advisory Committee CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been furnished with background and support material on each item, and/or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately unless requested by a Council Member or a citizen, in which event the item or items will immediately be withdrawn for individual consideration in its normal sequence after the items not requiring separate discussion have been acted upon. The remaining items will be adopted by one vote. CONSENT MOTIONS RESOLUTIONS ORDINANCES AND ORDINANCES FROM PREVIOUS MEETINGS, (At this point the Council will vote on all motions, resolutions and ordinances not removed for individual consideration) 4. Motion approving a supply agreement with National Meter, Inc., of Lancaster, Ohio, for approximately 4,625 gas meter valves ranging in size from 1" to 1 %" in accordance with Bid Invitation No. BI -0074-02 based on low total bid for an estimated annual expenditure of $47,275. The term of the supply agreement will be for twelve months with an option to extend for up to two additional Agenda Regular Council Meeting May 21, 2002 Page 4 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) twelve-month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by the Gas Department for FY2001-2002. (Attachment #4) 5. Motion authorizing the City Manager or his designee to execute a construction contract with N.R. Johnston Electric, Inc. of Corpus Christi, Texas, for a total fee not to exceed $42,104 for the Wesley Seale Dam Operations Center Emergency Generator. (Attachment #5) 6. Motion authorizing the City Manager or his designee to execute Change Order No. 3 with Insituform Technologies, Inc., of Houston, Texas, in the amount of $182,861.75 for the Sanitary Sewer Trunk Main Rehabilitation (Staples/Timbergate). (Attachment #6) 7. Motion authorizing the City Manager or his designee to execute Amendment No. 5 to an engineering services contract with Bath Engineering, Inc. of Corpus Christi, Texas, in the amount of $39,650 for a total re -stated fee of $559,978 for the Wastewater Microwave Communication System. (Attachment #7) 8. Ordinance abandoning and vacating a 5,834 -square foot portion, of a 10 -foot wide utility easement, out of Lots 1A and 2, Share III, C.C. Hart Partition; requiring the owner, Nueces County Emergency Services District No. 1 (Annaville Volunteer Fire Department) to comply with the specified conditions and replat the property within 180 days at the owner's expense. (Attachment #8) 9.a. Motion authorizing the City Manager or his designee to accept funding in the amount of $17,987.89 from the West Oso Independent School District E=MC2, 21" Century Grant Program to provide a structured summer recreation program for junior high students. (Attachment #9) 9.b. Ordinance appropriating $17,987.89 from West Oso Independent School District E=MC2, 21s` Century Grant Program in the No. 1050 Federal/State Grants Fund to provide a structured summer recreation program for junior high students. (Attachment #9) Agenda Regular Council Meeting May 21, 2002 Page 5 9.c. Resolution authorizing the City Manager or execute an Interlocal Cooperation Agreement Independent School District to operate a Recreation Program. (Attachment #9) his designee to with West Oso Summer Teen 10. Resolution authorizing the issuance of a permit to Clear Channel Radio for the Outdoor Music Festival, "C Sculptures", on the Gulf Beach at Newport Pass County Park in the Corpus Christi City limits. (Attachment #10) 11.a. Ordinance appropriating $462,181 from increased revenues of the Hotel Occupancy Tax Fund and transferring the full amount to the General Fund to be used for Beach Maintenance and Safety of newly annexed property on Mustang Island; amending Ordinance No. 024528 which adopted the FY2001-2002 budget by increasing both revenues and appropriations by $462,181 in the Hotel Occupancy Tax Fund. (Attachment #11) 11.b. Ordinance appropriating $525,671 from increased revenues of the General Fund to be used for Beach Maintenance and Safety of newly annexed property on Mustand Island; amending Ordinance No. 024528 which adopted the FY2001-2002 budget by increasing both revenues and appropriations by $525,671 in the General Fund. (Attachment #11) 12.a. Motion authorizing the City Manager or his designee to execute a contract with Collier, Johnson and Woods to perform the financial and compliance audit requirements for Fiscal Years ending July 31, 2002 and July 31, 2003, in the estimated amount of $123,000 for Fiscal Year 2001 - 2002, and an estimated amount of $130,000 for Fiscal Year 2002-2003 subject to the availability of funds. (Attachment #12) 12.b. Motion authorizing the City Manager or his designee to contract as needed with Collier, Johnson and Woods for additional assistance in the CAFR (Comprehensive Annual Financial Report) preparation for implementation of the new GASB (Governmental Accounting Standards Board) Statement No. 34 financial reporting model at their standard hourly rate, at an estimated amount of $10,000 subject to the availability of funds. (Attachment #12) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 17 Agenda Regular Council Meeting May 21, 2002 Page 6 13. Motion authorizing the City Manager to execute a legal services contract with Michael Terry, Attorney at Law, to serve as co- counsel with Fulbright & Jaworski, LLP, to represent the City in its negotiations with Leon Loeb on the South Wharf Project and with Landry's Restaurants, Incorporated on the City's Marina Operations and Development Project, subject to certification of funds. (Attachment #13) 14. Ordinance appropriating $60,000 from the Refinery Terminal Fire Company in the No. 1020 General Fund, Contributions and Donations Fund, for the purchase of Information and Video Displaying System for the City's Emergency Operations Center (EOC). (Attachment #14) 15. Second Reading Ordinance - Authorizing the City Manager or his designee to execute a five-year lease with Santa Fe Soccer League, a non-profit organization, for the use of City property, North Pope Park and South Pope Park, for its soccer program and in consideration of Santa Fe Soccer League maintaining the premises and improvements. (First Reading - 4/23/02) (Attachment #15) REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS AND ORDINANCES: 16. Motion authorizing initiation of contract negotiations with artists, Michael Manjarris for the complete development and installation of a sculpture garden to include six artists: Luis Jimenez, James Surls, Charmaine Locke, John Buck, Mel Chin and Michael Manjarris for the Convention Center/Arena Project in the amount of $500,000. (Attachment #16) 17. Motion appointing City of Corpus Christi Board Member Representatives to Corpus Christi Reinvestment Zone No. 2 Board of Directors. (Attachment #17) 18.a. Ordinance appropriating $235,357 from the Unappropriated Street Assessments in Street Capital Projects Fund No. 3530 for the construction of the Mustang Island Fire Substation and Parks and Recreation Beach Services Facility; amending Ordinance No. CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 9k_ El Agenda Regular Council Meeting May 21,2002 Page 7 18.b. 19.a. 19.b. 20. 21.a. 21.b. 024730, which adopted the FY2002 Capital Budget to increase appropriations by $235,357.(BOND ISSUE 2000) (Attachment #18) Motion authorizing the City Manager or his designee to execute a construction contract with Southern Contracting, Inc. of Corpus Christi, Texas in the amount of $473,800 for the Mustang Island Fire Substation and Parks and Recreation, Beach Services Facility. (Attachment #18) Motion adopting the FY2002 Community Development Block Grant (CDBG), Emergency Shelter Grants (ESG) and the HOME Investment Partnerships (HOME) Programs. (Attachment #19) Resolution adopting the City of Corpus Christi Consolidated Annual Action Plan (CAAP) for Community Planning and Development Programs for FY2002; authorizing the City Manager or his designee to submit the CAAP to the U.S. Department of Housing and Urban Development; and authorizing the City Manager or his designee to make changes in the CAAP if required by the U.S. Department of Housing and Urban Development. (Attachment #19) First Reading Ordinance - Amending Section 12-45.1, Code of Ordinances, relating to occupancy of vessels in the marina. (Attachment #20) First Reading Ordinance- Amending the Master Cable Services Regulatory Ordinance governing use of city streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Chdsti, Texas by providers of cable services; (Attachment #21) First Reading Ordinance - Granting to Texas Cable Partners, Inc. (Time Warner) a non-exclusive franchise to construct, maintain, and operate for a period of fifteen years, and during any extensions thereof, a cable television system and facilities and additions thereto, in, under, over, along, across and upon the streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas. (Attachment #21) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 21,2002 Page 8 21.c. 21.d. 22. 23.a. 23.b. First Reading Ordinance - Amending Section 6.2 of the ClearSource franchise regarding Public, Educational and Government access channels. (Attachment #21) First Reading Ordinance - Approving the transaction between ClearSource, Inc. and Grande Communications Holdings, Inc., subject to requirements. (Attachment #21) PUBLIC HEARINGS: (NONE) PRESENTATIONS: Public comment will not be solicited on Presentation items. Park and Recreation 2002 Summer Programs (Attachment #22) Solid Waste Services and Gershman, Brickner & Bratton, Inc. (GBB) describing status of the Business Plan for the J.C. EIliott Landfill and future Cefe Valenzuela Landfill (Attachment #23) Quarterly Update on Progress of the Automated Garbage Collection Program and Permitting Process (Attachment #23) PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 5:30 P.M. OR AT THE END OF THE COUNCIL MEETING. WHICHEVER IS EARLIER. PLEASE LIMIT PRESENTATIONS TO THREE MINUTES. IF YOU PLAN TO ADDRESS THE COUNCIL DURING THIS TIME PERIOD, PLEASE SIGN THE FORM AT THE REAR OF THE COUNCIL CHAMBER, GIVING YOUR NAME, ADDRESS AND TOPIC. (A recording is made of the meeting; therefore, please speak into the microphone Iocated at the podium and state your name and address. If you have a petition or other information pertaining to your subject, please present it to the City Secretary.) Si usted se didge a la junta y cree que su ingl~s es limitado, habr~ un int~rprete ingl~s-espa~ol en la re~nid~n de la junta para ayudarle. PER CITY COUNCIL POLICY, NO COUNCIL MEMBER, STAFF PERSON, OR MEMBERS OF THE AUDIENCE SHALL BERATE, EMBARRASS, ACCUSE, OR SHOW ANY CITY COUNCIL PRIORITY ISSUES (Refer to legend af~ the end of the agenda summary) Agenda Regular Council Meeting May 21,2002 Page 9 PERSONAL DISRESPECT FOR ANY MEMBER OF THE STAFF, COUNCIL MEMBERS, OR THE PUBLIC AT ANY COUNCIL MEETING. N. REPORTS: 24. 25. 26. O. NOTE: The following reports include questions by Council to Staff regarding City policies or activities; request by Council for information or reports from Staff; reports of activities of individual Council members and Staff; constituent concerns; current topics raised by media; follow-up on Staff assignments; scheduling of future Council meetings and activities; and other brief discussions regarding city-related matters. CITY MANAGER'S REPORT * Upcoming Items MAYOR'S UPDATE COUNCIL AND OTHER REPORTS ADJOURNMENTs: POSTING STATEMENT: This agenda was posted on the City's official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at ~ '; © _Fh p.m., May 17 , 2002. Armando Chapa City Secretary ~ The City Council Agenda can be found on the City's Home Page at www.ci.corous-christi.tx.us after 7:00 p.m. on the Friday before regularly scheduled council meetings. If technical problems occur, the agenda will be uploaded on the Internet by Monday morning. Symbols used to highlight action item that implement council priority issues. CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 2001-2002 CiTY COUNCIL GOALS AND PRIORITY ISSUES Mrport / Seawall / Conv,,~nti0n Center / Arena · Continue quarterly reporting process for these initiatives. '86 Bond ,Issue Improvements · Update status on Senior Centers` Provide communication on completion oftbese projects (e.g. "Report to the Community"). · Continue community involvement on issues such as Leopard Street improvements. Privatization / Re-Emfineerin~, · Clearly define "pfivatization" and "re-engineering" · Make decision~ regarding privatizafion and re-engineering in the next 12-24 months, with discussions within 90 days. · Establish process to identify what services can and cannot be pfivatized. · Continue focus on park maintenance. Finance · Maintain the 5-year forecast model. · Review the August 1 budget adoption deadline. Crime ,Control and Prevention · Continue implementation of the Community Policing initiative. · Establish date for Crime Control and Prevention Distric~ election. · Continue City participation in Youth Opportunities United and other youth crime initiatives, Emnlovee Health Care · Address concerns relatexl to employee compensation and benefits, including health insurance. · Work to coordinate Police and Fire health benefits with those of other City employees Economic Development Shies Tax · Establish election date. S,t0rm Water Utltit, · Reconsider implementation plan for a Storm Water Utility. Pa~ery Channel · Continue quarterly reports on the progress of the TIF and Beach Restoration Project. L4ndfl!! · Continue to evaluate the efficiency and effectiveness of operations. ,~ Examine alternatives for solid waste management system, including pfivatlzation. Interact · Continue regular updates and expansion of the City's web site, including individual council member web pages. · Establish target date for online permitting process. · Communicate brush pickup via e-maiL · Continue active role. Frost ]Bank Buildim. · Lease and complete renovation Annexation Pla~ * Implement current island annexation plan ADA Transition Plan · Develop and approve ADA Transition Plan within 90 days. Redhtriefinf · Develop Council.approved redistricting plan for the City of Corpus Christi Industrial Districg,Contra ,ct · Review Industrial District contracts and determine date for approval Colmcil Action Items · Staff completes action requests in a timely manner. C~ty / County Health Issue~ · Continue discussions with County to determine structure and process for the most effective and efficient delivery of health services Marketing of CC Mus~t~m and Columbus Ships · Continue to develop marketing plans for thc Museum of Science and History and the Columbus Fleet Relationships with Other Governments Development Initiative Packages *Park Rehabilitation *Leopard Street Curbs and Gutters Economic Development Summit and Post-Summit Meetings Agnes-Laredo Corridor Market (studies, plans) *Solid waste / Pickup Base Closures **Northwest Library Northside Development Plan Traffic Controls (channeling, studying on/offmmps on SPID) *Five Points Ambulance Effluent Plan for Leopard Medians RTA--Public Improvements Arts and Sciences Park Plan Budget Item ** Capital Improvement Program Item PRIORITY INITIATIVES AND ISS ~UE, , City staJf will develop and present to City Council action/implementation plans for the following priority Desalination Pilot Project *Code Enforcement in Trashy Neighborhoods s~ *Employee Classification Study Ma ster Drainage Plan l~ Gatwood Water *New Golf Course *Charter Revision with Specific Charge(s) *More Funding for Economic Development *Fire and Police Contracts New Funding Sources / Plan for Inner City Improvements Improve Permitting Process (orfline / customer service) Padre Island Development Plan Downtown / South Central Developmem Plan (marina, t-heads, breakwater) Housing Emphasis / Process (older neighborhoods, working class neighborhoods) ~ **Road Projects ~ Southside Traffic Plan PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Bill Kelly Council Members: Brent Chesney Javier D. Colmenero Henry Garrett Rex A. Kinnison John Longoria Jesse Noyola Mark Scott MINUTE~ CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 14, 2002 - 2:00 p.m. City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Assistant City Secretary Mary Juarez Recording Secretary Rachelle Parry Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. Glen Kost and the Pledge of Allegiance to the United States flag was led by kindergarten classes of Seashore Learning Center. The Mayor then read the day's proclamations. Assistant City Secretary Juarez called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the joint and regular Council meetings of April 30, 2002. A motion was made and passed to approve the minutes as presented. Mayor Neal referred to Item 2 and the following board appointments were made: Eduardo Hinojosa P in i i Shirley Mims C.C. Downtown Management District Brad Lomax Mayor Neal called for consideration of the consent agenda (Items 3-13). Assistant City Secretary Juarez stated that Council Member Noyola would be abstaining on Item 6. Cotmcil members requested that Item 12 be discussed. There were no comments from the audience. Ms. Juarez polled the Council for their votes and the following were passed: 3. M2002-129 Motion authorizing the City Manager or his designee to execute a 12-month maintenance Minutes - Regular Council Meeting May 14, 2002 - Page 2 agreement with Hewlett-Packard Company in the mount of $94,831.20 for hardware and operating system maintenance based on sole source. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 4. M2002-130 Motion authorizing the City Manager or his designee to execute a 12-month maintenance agreement with Hewlett-Packard Company in the amount of $29,810.40 for maintenance support of the hardware and operating system of the Municipal Corot's computer management system, based on sole source. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Gan'eR, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Motion authorizing the City Manager or his designee to execute a construction contract with Lowman Services Inc. in the amount of $232,808.30 for the Up River Road force main replacement near Callicoatte Road. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Gan:eR, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." M2002-132 Motion authorizing the City Manager or his designee to execute Change Order No. 31 with Fulton Constmction/Coastcon Inc., a joint venture, in the amount of $63,257.13 for the Corpus Christi International Airport terminal project. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kiunison, Longor/a, and Scott voting "Aye"; Noyola abstaining. M2002-133 Motion authorizing the City Manager or his designee to execute Change Order No. 13 and to increase the escrow amount with the Texas Department of Transportation in the amount of $29,734.18 as part of the McArdle Road Phase 1 improvements from Everhart Road to Weber Road construction contract in accordance with the advanced funding agreement. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Minutes - Regular Council Meeting May 14, 2002 - Page 3 8.a. RESOLUTION NO. 024864 Resolution determining the necessity for and ordering the improvement of the following highway in Corpus Christi, Nueces County, Texas for the Flour Bluff area street improvements, Phase 1: Claride Street from N.A.S. Drive to Mounts Street; Mounts Street from Claride Street to Lakeside Drive; Jane Street from Jester Street to Claride Street; Webb Street from N.A.S. Drive to Jane Street; Scotland Street from N.A.S. Drive to Jane Street; specifying that certain of these improvements will be paid for partly by the City and partly by assessments while others will be paid entirely by assessments; and directing the City's Director of Engineering Services to file a notice of proposed assessments with the Nueces County Clerk. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kiunison, Longoria, Noyola, and Scott voting "Aye." 8.b. RESOLUTION NO. 024865 Resolution approving plans and specifications for improvements to the following highway in Corpus Christi, Nueces County, Texas for the Flour Bluff area street improvements, Phase 1: Claride Street from N.A.S. Drive to Mounts Street; Mounts Street from Claride Street to Lakeside Drive; Jane Street from Jester Street to Claride Street; Webb Street from N.A.S. Drive to Jane Street; Scotland Street from N.A.S. Drive to Jane Street; approving the Director of Engineering Services' project construction cost estimate including an estimate of the portion of costs to be paid by the City and the portion to be paid by assessments; setting a public hearing on these proposed assessments to occur during the June 25, 2002 City Council meeting; directing the City Secretary to arrange to publish notice of this public hearing; and ordering the Director of Engineering Services to provide written notice of the public hearing to property owners. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 9.a. RESOLUTION NO. 024866 Resolution determining the necessity for and ordering the improvement of the following highway in Corpus Christi, Nueces County, Texas, for the CliffMaus Road, Phase lA street improvements: Cliff Maus Road from P.M. 665 (Old Brownsville Road) to just south of Rockford Road; specifying that certain of these improvements will be paid for partly by the City and partly by assessments while others will be paid for entirely by assessments; and directing the City's Director of Engineering Services to file a notice of proposed assessments with the Nueces County Clerk. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Minutes - Regular Council Meeting May 14, 2002 - Page 4 9.b. RESOLUTION NO. 024867 10. .Resolution approving plans and specifications for improvements to the following highway in Corpus Christi, Nueces County, Texas: Cliff Maus Road Phase lA from F.M. 665 (Old Brownsville Road) to just south of Rockford Road; approving the Director of Engineering Services' project construction cost estimate including an estimate of the portion of costs to be paid by the City and the portion to be paid by assessments; setting a public hearing on these proposed assessments to occur during the July 16, 2002 City Council meeting; directing the City Secretary to arrange to publish notice of this public hearing; and ordering the Director of Engineering Services to provide written notice of the public hearing to property owners. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." ORDINANCE NO. 024868 Ordinance authorizing the City Manager or his designee to execute a use privilege agreement with LLR Staples Ventures Ltd. for the right to construct, operate, maintain and remove a 3- · foot wide by 34-foot long canopy extension over public street right-of-way (sidewalk area) adjacent to the building located at 1316 S. Staples Street; establishing a fee of $380, and other specified conditions. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 11.a. RESOLUTION NO. 024869 Resolution authorizing the City Manager or his designee to execute an interlocal grant contract with the Texas Historical Commission (THC) for a $15,000 grant for production of a historical video of the City of Corpus Christi and its people in partnership with the Sesquicentennial Committee celebration of the City's 150~ year history. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 11.b. ORDINANCE NO. 024870 Ordinance appropriating $15,000 in Fund No. 1050, Federal/State Grants Fund from a Texas Historical Commission grant to fund production of a historical video of the City of Corpus Christi and its people in partnership with the Sesquicentennial Committee celebration of the City's 150th year history. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Minutes - Regular Council Meeting May 14, 2002 - Page 5 13. ORDINANCE NO. 024874 Ordinance appropriating $36,790.19 in the No. 1050 Federal/State Grant Fund for the CDBG demolition lien program income received from repayment of demolition liens to the Federal/State Grant Fund demolition grants. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mayor Neal opened discussion on Item 12, coastal erosion at Sunfish Island and McGee Beach. Responding to Council Member Scott, Mr. Tony Cisneros, Director of Park and Recreation, said the design, bidding and construction have to be in place by August 2003. He said although there are separate grants, the General Land Office has decided to treat these as one project. He said this project will result in portions of the marina being dredged in order to renourish McGee Beach and reestablish the eroded areas of Sunfish Island. City Manager Garcia said staffwill request a time line from the state and forward it to the Council. Assistant City Secretary Juarez polled the Council: 12.a. RESOLUTION NO. 024871 Resolution authorizing the City Manager or his designee to execute a project cooperation agreement with the Texas General Land Office in the amount of $210,000, including $178,500 in funding from the Texas General Land Office provided under the Coastal Erosion Planning and Response Act, for an alternatives analysis of coastal erosion at Sunfish Island and McGee Beach, Corpus Christi, Texas with the Coastal Bend Bays and Estuaries Program providing the 15% local match. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." 12.b. RESOLUTION NO. 024872 Resolution authorizing the City Manager or his designee to execute a reimbursement contract for government entities with the Coastal Bend Bays and Estuaries Program in the amount of $31,500 for an alternatives analysis of coastal erosion at Sunfish Island and McGee Beach, Corpus Christi, Texas. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and,Scott voting "Aye." 12.c. ORDINANCE NO. 024873 Ordinance appropriating $31,500 from the Coastal Bend Bays and Estuaries Program in the No. 1050 Federal/State Grants Fund for an alternatives analysis, which will assess the Minutes - Regular Council Meeting May 14, 2002 - Page 6 feasibility, cost and fmancing of diffem~nt methods of avoiding, slowing or remedying coastal erosion at Sunfish Island and McGee Beach, Corpus Christi, Texas. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mayor Neal announced that due to the Consolidated Annual Action Plan public hearing at 6 p.m., public comment for the regular meeting will be heard prior to the executive session. Mayor Neal referred to Item 14, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 14. Case No. 0402-01. Sun George Contracting and Development Co.; A change of zoning fi.om an "F-R" Farm-Rural District to a "R-lB" One-family Dwelling District on Flour Bluff and Encinal Farm and Garden Tracts, being 17.953 acres out of Lot 19, Section 19, located on the south side of Wooldridge Road, approximately 600 feet east of Airline Road. Assistant City Secretary Juarez said the Planning Commission and staff recommended approval of the "R-1B" One-family Dwelling District. No one appeared in opposition to the zoning change. Mr. Scott made a motion to close the public hearing, seconded by Mr. Chesney, and passed. Ms. Juarez polled the Council for their votes as follows: ORDINANCE NO. 024875 Amending the Zoning Ordinance upon application by Sun George Contracting and Development Company by changing the zoning map in reference to 17.953 acres out of Lot 19, Section 19, Flour Bluff and Encinal Farm and Garden Tracts, being 17.953 acres, fi.om "F-R" Farm-Rural District to "R-lB" One-family Dwelling District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mayor Neal referred to Item 15, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 15. Case No. 0402-02. U-Stor Midland LLC: A change of zoning fi.om an "A-2" Apartment House District to "B-4" General Business District on Flour Bluff and Encinal Farm and Garden Tracts, being 2.547 acres out of Lots 1 and 2, Section 11, located on the east side of South Staples Street and south of Saratoga Boulevard. Minutes - Regular Council Meeting May 14, 2002 - Page 7 Assistant City Secretary Juarez said the Planning Commission and staff recommended approval of the "B-4" General Business District. No one appeared in opposition to the zoning change. Mr. Garrett made a motion to close the public hearing, seconded by Mr. Colmenero, and passed. Ms. Juarez polled the Council for their votes as follows: 15. ORDINANCE NO. 024876 Amending the Zoning Ordinance upon application by U-Stor Midland, LLC, by changing the zoning map in reference to 2.547 acres out of Lots 1 and 2, Section 11, Flour Bluff and Encinal Farm and Garden Tracts fi.om "A-2" Apartment House District to "B-4" General Business District; amending the Comprehensive Plan to account for any deviations fi.om the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Mayor Neal referred to Item 16, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 16. Case No. 0402-03. Fleet Reserve Association: A change of zoning from an "RA" One-family Dwelling District with a "SP" Special Permit to a "B-3" Business District on Flour Bluff Heights, Block 5, Lots 1-7 and Lots 19-25, located on the east side of Carletta Street between Valerie and Jester Streets. Assistant City Secretary Juarez said the Planning Commission and staff recommended denial of the "B-3" Business District. Responding to Mayor Neal, Mr. Miguel Saldaha, City Planner, said that if the Council concurs with the Planning Commission's and staff's recommendation of denial of the "B-3," the property will retain the existing special permit. However, he said the members of the Fleet Reserve Association were requesting a rezoning in order to construct a new facility oriented toward Jester Street and tear down the existing one. He said staffis of the opinion that the facility is mainly a bar. Mayor Neal called for comments from the audience. Mr. Cheyenne Eichelberger, 2206 Saxony Dr., said he was representing the Fleet Reserve Association (FRA), which is requesting a special permit to construct a new facility. He said there are some concessions which have not been discussed, such as providing fencing on Valerie Street and changing the access to Jester Street. Using a computer presentation, Mr. Eichelberger said the FRA is a fraternal organization of military personnel whose facility has had the same, neighborhood- friendly location for over 30 years. Mr. Eichelberger said the FRA has provided several community services, including supporting the Naval Air Station; hosting the Sailor of the Year banquet; assisting the Flour Bluff High School NJROTC program and the Women's Shelter; and working with other civic organizations. He said the FRA is requesting a new speeiat permit to facilitate the construction of Minutes - Regular Council Meeting May 14, 2002 - Page 8 a 4,000-square foot building to replace the current facility, which will enhance the neighborhood. He said he has not been able to find any documented incidents of disruptions to the community. He added that the FRA owns a "green zone" around its property and he noted that according to the development plan, this area should gradually transition to commercial and industrial uses. He said they plan to fence off the area facing Valerie Street. Council Member Noyola asked Mr. Eichelberger if the FRA is a bar. He replied that it is not, but the FRA does serve alcoholic beverages. He said the board approved new operating hours fi.om 11 a.m. to midnight Mondays through Saturdays and from noon to 8 p.m. on Sundays. Mr. Noyola said many of the neighbors expressed opposition to the FRA's facility because they do not want a bar there. Mr. Eichelberger said there was some opposition expressed during the Planning Commission hearing, but the FRA surveyed some of the neighbors and one resident has since changed her mind while others were not opposed. He reiterated that the FRA is a fraternal organization consisting of retired and active duty military personnel. Council Member Garrett asked how long the FRA has been in that location and Mr. Eichelberger replied for 30 years. Mr. Garrett said the FRA has enhanced the neighborhood. Council Member Scott asked if, given a few more weeks, the FRA could persuade the neighbors to be more receptive to their plans. Mr. Eichelberger replied affirmatively, saying that some of the neighbors are opposed to the "B-3" zoning but they might support a new special permit. Mayor Neal asked if the original building had a special permit. Mr. Saldafia explained that in 1995 the FRA came before the City Council with a rezoning request, but the Planning Commission recommended against it and the Council granted a special permit to allow the FRA a 300-foot expansion. He added that non-conforming uses cannot expand. Mr. Eichelberger said the FRA and staff have not discussed a new special permit in detail. Mr. Saldafia said the Planning Commission and staff are recommending denial of the "B-3" and denial of a new special permit so that the current regulations remain in place. Responding to Council Member Chesney, Mr. Saldafia said staff initially recommended a new special permit but they reversed their decision after they heard the objections fi.om the neighbors during the Planning Commission hearing. Mr. Scott made a motion to table Item 16 until May 28, 2002, seconded by Mr. Noyola. Mr. Chesney pointed out that other people had wanted to address the Council on this issue. Ms. Brenda York, 401 Valerie St., said that for about 16 years she has lived three houses from the FRA's facility. She said she is objecting to what she called a proposal for a "bigger, better bar" in their small neighborhood. She asked the Council to put themselves in the residents' places and to consider how the reserve's operations, particularly the sale of alcohol at 8 a.m., affects the neighbors. She added that that area does not have sidewalks, only roadside ditches. In reply to Mr. Scott, Mr. Eichelberger said the FRA is proposing to place the facility's new entrance on Jester Street, which runs almost directly into NAS Drive. He also discussed the fence. Minutes - Regular Council Meeting May 14, 2002 - Page 9 Mr. Henry Sauceda, 409 Valerie St., said the Fleet Reserve is another name for a bar. He said even with the entrance on Jester Street, there are 15 young children who play on the road because there are no sidewalks. He said the residents do not want alcohol-related accidents there. Ms. Ellen Presnell, 318 Valerie St., said that anyone--not just military personnel--can be a member of the Fleet Reserve. She said large beer macks make deliveries to the FRA and wastewater trucks travel to the plant at the end of the street. She said she is also opposed to FRA expanding, saying that they should relocate instead. She said she is not opposed to the neighborhood transitioning to commercial ifa company bought out the propen'y owners, but she is not in favor of a bigger bar. Mr. Kinnison made a motion to close the public hearing, seconded by Mr. Colmenero, and passed. Mr. Chesney asked how many people expressed opposition to this case during the Planning Commission heating. Mr. Saldafia replied that there were four or five people who spoke in opposition; consequently, staff concluded that a bar in a residential neighborhood was not appropriate, which should have been the conclusion when the special permit was granted in 1995. Mr. Chesney asked if the FRA is in violation of the existing special permit and Mr. Saldafia said they are not. He said the applicant originally wanted to build a 5,000-square foot building and they have since reduced it to 4,000 square feet. He added that only members of the FRA spoke in favor at the Planning Commission heating. Mr. Scott told the propen'y owners that they cannot force the FRA to leave and they are willing to continue to let it operate as it is. Mr. Presnell replied that she is thinking about going to the Texas Alcoholic Beverage Commission to oppose the FRA's liquor license. She added that the neighbors feel the FRA has not kept its commitments, such as with the parking lot expansion. Additional discussion ensued. Mr. Scott withdrew his motion to table Item 16. Mr. Colmenero made a motion to uphold the Planning Commission's and staff's recommendation of denial of the "B-3" zoning; seconded by Mr. Longoria. Mr. Eichelberger said the FRA is asking for a new special permit and they are willing to work with the property owners. Assistant City Secretary Juarez polled the Council on Mr. Colmenero's motion, and it passed as follows: Neal, Chesney, Colmenero, Gan'eR, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mayor Neal referred to Item 17, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 17. Case No. 0402-06. McLaughlin Construction: A change of zon/ng from a "B-I" Neighborhood Business District to a "B-4" General Business District on Gardendale Unit 2, Block 4, Lot 19B, located on the west side of South Staples Street, approximately 300 feet south of Williams Drive. Minutes - Regular Council Meeting May 14, 2002 - Page 10 Assistant City Secretary Juarez said the Planning Commission and staff recommended approval of the" B-4" General Business District. No one appeared in opposition to the zoning change. Mr. Noyola made a motion to close the public heating, seconded by Mr. Kinnison, and passed. Ms. Juarez polled the Council for their votes as follows: 17. ORDINANCE NO. 024877 Amending the Zoning Ordinance upon application by McLaughlin Construction by changing the zoning map in reference to Lot 19B, Block 4, Gardendale Unit 2, from "B-l" Neighborhood Business District to "B-4" General Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Colmenero and Longoria absent. Mayor Neal referred to the presentations on the day's agenda. The first presentation (Item 18) was regarding the Stormwater Management Advisory Committee's (SWMAC) recommendations on stormwater management funding. Ms. Valerie Gray, Stormwater Superintendent, explained that during FY 2000-01 the Council said that one of their priority issues was to evaluate the need for a stormwater drainage utility. In response, staffdeveloped an action plan that focused on two main tasks: to evaluate the current and future stormwater management needs; and to determine the ability of the existing funding system to meet future needs. The Council reappointed the SWMAC in July 2001 and assigned them the tasks laid out in the action plan. Ms. Gray said the committee evaluated the following elements of the current system: funding, maintenance and operations, Texas Pollution Discharge Elimination System permit program, capital improvement program, and stormwater master plan project. The members concluded that there is a serious need for stormwater drainage capital improvements and they expressed concern about the impact of the master plan project findings on future capital needs. The Stormwater Superintendent said the committee considered the following fimding possibilities: bond program, utility rate increases, capital improvement fees, impact fees, higher standards, transference of non-drainage functions, and stormwater utility fees. Their resulting fimding recommendations are to hold a bond election in 2003 or 2004; increase the Water Department utility rate by 5% for the current year and annually thereafter; consider adopting a nominal capital improvement fee; and require city staffto impose higher drainage standards in the platting process. Ms. Gray then discussed specific aspects of the committee's four recommendations. She said staff feels that while a capital improvement fee is a positive step, it will not adequately address the Stormwater Department's long-term funding requirements. Responding to Mayor Neal, Ms. Gray said that of the four recommendations, the one that can Minutes - Regular Council Meeting May 14, 2002 - Page 11 probably be implemented the soonest is the drainage fee, which would help to supplement the 5% increase and allow for drainage improvements in the next three years. City Manager Garcia said there are key stormwater projects that need to be part of the next bond issue, but that does not resolve the ongoing drainage problems which need a continuous revenue source, such as a drainage utility. In reply to other questions from the Mayor, Ms. Gray said the monthly drainage fee would be applied to the city's approximately 77,000 customers, which include schools, churches, restaurants, duplexes, commercial entities and residences. It would consist of a flat fee of $1 for single family/residential customers; $2 for duplexes; and $2.50 for all others. Staff estimates that that fee will provide $1 million in annual revenues and $10 million in one-time revenues for stormwater capital improvement projects. Responding to Council Member Colmenero, Ms. Gray listed some of the important stormwater projects that need to be completed, which total 39. Assistant City Manager Ron Massey said the short-range stormwater capital improvement plan (CIP) consists mostly of those associated with street projects. Ms. Gray said the long-range stormwater CIP totals $66.8 million, which is prior to the results of the stormwater master plan. Council Member Kelly asked about the status of that master plan. Ms. Gray said staff is reviewing one of the final drafts of the policy manual and they will bring back recommendations to the Council for their approval. Mr. Kelly asked if it will include a map of locations for major ditches and Ms. Gray said that will be included. She said the next step will be the continuation of the design criteria manual and the hydraulic analysis. Mr. Kelly said he and Mr. Scott had discussed the possibility of establishing in-house mechanisms whereby the city can receive right-of-way donations for future ditches. Mr. Massey said that Channel 31 was constructed through a similar process. He said many donations will depend on how quickly the ditch will be constructed. Mr. Kelly said there are several major road projects in the near future and he does not want to see opportunities for new ditches squandered. Responding to Council Member Chesney, Mr. Garcia said crises occur shortly after flooding occurs. Mr. Chesney said that while it is important to plan for future needs, there still exists the necessity of finding $66.8 million for 39 stormwater projects that are already identified. He also commented on upcoming bond elections, saying they allow citizens to choose the projects they want to fund. Mr. Garcia said the city is on a four-year bond cycle now (with the next one scheduled for 2004), although the Council can change that time line if it wishes. Mr. Scott said he wants staff to creatively find ways to get right-of-way donated and to construct future drainage ditches. Replying to Council Member Kinnison, Mr. Mark McDaniel, Director of Management and Budget, said that a bond project could be structured to be paid for with rates and not ad valorem taxes. Mr. Garcia said that revenue bonds do not require voter approval but general obligation bonds do. He described two sets of assumptions for funding options. City Attorney Bray said he is not aware of a general law provision for submitting revenue bonds to the voters. Mr. McDaniel said some cities do that as self-supporting debt that is backed by taxes in order to get a better rate, and then they reimburse themselves. Mr. Kinnison said the Council is aware of the stormwater problems Minutes - Regular Council Meeting May 14, 2002 - Page 12 and they want the public to endorse the concept as opposed to just raising their rates. Council Member Noyola asked about funding requirements, which staff discussed. Mr. Kinnison asked if staff supports the committee's recommendation for a drainage fee for stormwater capital projects. Mr. Garcia said staff does not have its own recommendation at this point but they feel the fee is better than nothing. He said that historically, discussions about a drainage fee have broken down when they tried to allocate specific costs among different customers. He said the current SWMAC, which consists of several business representatives, feels that the burden should basically be on the residential homeowners and not on commercial businesses. Mr. Henry Nuss, a member of the SWMAC, said the committee also feels that the fee is a first step and that additional study is needed. He reiterated that the committee is also recommending the 5% utility rate increases and bond elections to fund capital improvements. Mr. Kinnison, who served on the committee in the past, said this committee devised simple recommendations while previous committees did not set maximum amounts or caps on the fees. Mayor Neal said they have been talking about a band-aid approach to a serious problem and they will not relieve the pressure on the utility rates as long as the Stormwater Department falls under the Water Department. In addition, if stormwater projects are included in a bond election, they will have to compete with improvement projects to parks, streets and other items. He said utility rates affect lower-income citizens more than ad valorem taxes do and the only solution is to have a separate stormwater utility. Mr. Nuss replied that Stormwater is still a utility whether or not it is under the Water Department. The Mayor said he thinks the Council needs to carefully consider alternative funding sources. Mr. Nuss said the committee envisioned that the $1 million would replace the normal pay- as-you-go fimding and they feel all of the costs associated with street projects should be included; i.e., not separately allocating the street-related drainage costs to the Stormwater Department. Mayor Neal called for a brief recess. The second presentation (Item 19) was regarding implementation and financing options of the compensation and classification study. Ms. Cynthia Garcia, Human Resources Director, introduced Ms. Ruth Ann Edwards, a consultant with Waters Consulting Group Inc. (WCG). Ms. Edwards noted that in her previous presentation to the Council (on March 26, 2002), she had described the point factor job evaluation system they used to determine the internal value of each job (excluding police and fire). She said all city jobs were ranked and then separated into pay grades using standard compensation methodology. She said the second step, about which she was briefing the Council, was the integration of the market data in order to develop salary structures. Ms. Edwards said the city currently has two pay structures-management and graded. She said they are proposing breaking them into four different pay systems: non-exempt (80.5% or 2,164 Minutes - Regular Council Meeting May 14, 2002 - Page 13 employees); exempt (15.75% or 451 employees); legal exempt (1% or 14 employees); and information technology exempt (2.75% or 71 employees). She said WCG is recommending breaking out the legal and information technology jobs because they are particularly volatile at this time and can be managed separately from the other structures. Ms. Edwards said they are also proposing that as the new structures are created, the midpoint be used as the market average (if the city chooses to be in line with 100% of market). She said that over a period of time, the city can change that attachment relationship to the market data. WCG is also recommending increasing the midpoint differential from one level to the next (to 8%-15%) and increasing the minimum to maximum spreads in each job. She said this will allow for fewer levels within the individual structures, which is easier to manage. Mr. Kevin Russell, also of WCG, said that they marketed about 25% of the city's positions. The result was that all of the pay structures are behind the market. For example, the non-exempt and legal positions pay about 84% of what the market is commonly paying, followed by information technology (89%) and exempt (93%). On average the city pays about 86% of the market. Mr. Russell said that the cost to bring all of the city's job structures to 100% of market would be $12.9 million citywide, of which $8 million would come from the General Fund. However, because of the costs involved, WCG is recommending a five-year implementation plan to move from 90% of market to 100% of market and bring employees who are currently below the entry positions up to entry. He said those changes will result in annual costs of about $2 million per year. Ms. Edwards said that WCG also compared the city's benefits package with market data, which illustrated noticeable differences in three areas. She said they are recommending that the city increase the number of personal leave days, change the vacation accrual for eligible employees, and add bereavement leave. She said WCG was seeking direction fi'om the Council, particularly for the first year. She added that the five-year implementation schedule allows the Council to move to 100% of market if they choose while staying within the budget. Responding to Mayor Neal, Deputy City Manager Nee said part of the reengineering program in the utilities departments is to go to a skill-based pay program which will be overlaid on top of this structure. City Manager Garcia pointed out that also due to reengineering, the number of city employees has been going down the last two years. As a result, even though the salaries have been increasing, the pay line in the budget has been flat. And the number of employees will continue to decrease as the reengineering program is implemented in other city depaltments. He said the plan is to have fewer but better skilled and compensated employees. He said for the next five years, this program will substitute for the cost-of-living program. Ms. Garcia noted that non-union employees do not have a step program. Council Member Garrett asked if the ranges will overlap. Mr. Garcia said there will still be some overlapping but it will be much smaller. Mr. Garrett said this program is very much overdue. Council Member Noyola requested information about all the positions and related compensation; Ms. Edwards said they will provide that. Mr. Nee said this system assumes a 2~A% movement of the market each year. Mr. Garcia said that in order to maintain parity, the city needs to implement cost- Minutes - Regular Council Meeting May 14, 2002 - Page 14 of-living increases plus an additional amount to catch up with the market. Council Member Kelly said he would like city employees to have access to federal mortgage programs. Mr. Garcia said there are certain eligibility criteria for those programs, which are targeted to low-income families. Council Member Scott asked if the proposed 5% increase in utility rates includes the salary costs for utility employees. Mr. Noe and Mr. McDaniel said the operating costs are included. Mr. McDaniel said this program will also have to be included in the upcoming budget process. Council Member Colmenero said this program proves that the Council is concerned about city employees. Responding to Mayor Neal, Mr. Garcia said this program will come back to the Council through individual budget ordinances. Mr. Kinnison said he hopes that the implementation of this program does not result in service cuts. Mr. Noe said it is staff's priority to maintain services while making these changes. Council Member Longoria asked if due diligence had been done on the Municipal Court judges. Mr. Noe said the study does not include Council-appointees, such as the judges. Ms. Garcia said they do have market information about judges' salaries but it was not part of the study. Mr. Garcia said staff can bring back a report specifically on the Mtmicipal Court judges. Mayor Neal called for petitions from the audience. Mr. Jack Gordy, 4118 Bray Dr., said it was a waste of money to send out the privacy notifications separately rather than including them in customers' utility bills. He also commented on political signs at the Crosstown Expressway and South Padre Island Drive which, according to state law, should have been removed no later than April 19th. He said the flagpole in fi:om of City Hall also needs to be repaired or replaced. Mayor Neal asked whether candidates who have general election opponents can leave their political signs up until that election. Mr. Bray said staff will provide information. Mr. Kinnison questioned whether the city needs to send compliance letters to the school district candidates. Dr. Scott Dinkens, 7629 Odessa, said he is president of the Padre Soccer League at the Bill Witt soccer complex. He said last week he received the endorsement of the Park Board to construct two permanent restroom and concession stand facilities. Dr. Dinkens said they have the funding for the buildings and the equipment but not the wastewater line that would have to be installed. Mr. Kinnison said Mr. Massey and other staff have been trying to determine the cost of that line and funding sources. Mr. Charlie Bryan, 4101 Cork, said he and others passed out over 100 helmets during Family Fest, at which several young people expressed their support for a skate park. He said their organization is actively promoting safety and youth sports programs. He asked the Council to consider their request for CDBG funds. Minutes - Regular Council Meeting May 14, 2002 - Page 15 Mayor Neal announced the executive sessions pursuant to Texas Government Code Sections 551.071 and 551.087. The Council went into executive session. The Council returned from executive session. Mayor Neal said the Council had considered the following: 21.a. - City of Corpus Christi Project #3219, Nourishment of Corpus Christi Beach-2001, with possible discussion and action related thereto in open session; and 21.d. -deliberation of offer of financial or other incentive to a business prospect that the City of Corpus Christi seeks to have locate in or near the City. The Mayor said the following were delayed until next week: 21.b. -Larry Young et al v. City of Corpus Christi, No. 01-647-C, 94th District Court, Nueces County, Texas, and Mary Collins et al v. City of Corpus Christi, No. 01-646-C, 94th District Court, Nueces County, Texas; 21,¢, -David Cook v. City of Corpus Christi, No. C-01-341, United States District Court for the Southern District of Texas, Corpus Christi Division; and 21 .e. -proposed Thomas J. Hem3, sign. Mayor Neal made the following motion, which was seconded by Council Member Longoria: 21.a. M2002-134 Motion authorizing the City Manager to execute agreements with The Mountbatten Surety Company Inc. and Fugro South Inc. settling certain claims of the City of Corpus Christi in connection with City of Corpus Christi Project #3219, Nourishment of Corpus Christi Beach- 2001, in accordance with the settlement negotiated by the city's attorneys. The foregoing motion passed by the following vote: Neal, Chesney, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Colmenero absent. Mayor Neal referred to Item 22 regarding the City of Corpus Christi's proposed FY2002 Consolidated Annual Action Plan (CAAP), which is the application for funding for the Community Development Block Grant (CDBG), HOME Investment Parmerships (HOME) and Emergency Shelter Grants (ESG) programs. Deputy City Manager Noe gave a computer presentation about the CAAP process. He noted that the Housing and Community Development staffmade five city-wide presentations to advise the public of the funding availability. With regard to the CDBG program, the city has received $133 million since 1975, which includes $11 million of program income. That program provides funds to improve and enhance the quality of life for low- and moderate-income citizens. Since 1992, the city has received $16.4 million in HOME funds to help increase and improve affordable housing opportunities through rental rehabilitation, home ownership subsidy programs, rehabilitation, and reconstruction. And since 1987, the city has received more than $1.6 million in ESG funds, which assist homeless providers through rehabilitation, counseling, training, homeless prevention activities and other essential programs. Mr. Noe said the FY02 CAAP allocation is $7,108,000 as follows: $4,950,000 for CDBG; $1,985,000 for HOME; and $173,000 for ESG. In addition, there is program income of $700,000 from loans provided during previous CDBG years and CDBG reprogrammed funds of $251,842, for total CDBG available funding of $5,901,842. Mr. Noe then delineated staff's funding Minutes - Regular Council Meeting May 14, 2002 - Page 16 recommendations for the three programs. Mr. Noe said the Planning Commission concurred with all of staff's recommendations with two exceptions: the commissioners recommended decreasing funding for the demolition grant program in order to increase funding for Catholic Charities-Mother Theresa Shelter and they recommended funding the Corpus Christi Hispanic Chamber of Commerce. The commissioners also adopted a resolution recommending that in FY03 the City Council direct staffto begin phasing out the use of CDBG funds for street and ADA improvements. Mayor Neal referred to Tab "A" in the CAAP binder regarding the Council's policies for the CDBG program, which were originally approved by the Council in 1994 and reaffirmed by them on November 20, 2001. Mr. Colmenero made a motion, which was seconded, to readopt the Council's CDBG policies. A voice vote was called and the motion passed as follows: 22. M2002-135 Motion reaffirming Community Development Block Grant program objectives and guidelines as previously adopted by the City Council on March 22, 1994 (Resolution No. 021901). The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye." Mr. Kinnison referred to Item(a) of the policies, which states: "No CDBG funds be authorized to applicant agencies for the support of operating expenses." He said he thought there was an exception for funding city programs. Mr. Noe replied affirmatively. Mr. Chesney asked about the Planning Commission's resolution, saying he does not agree with excluding ADA improvements from CDBG funding. Mr. Noe said the Planning Commission feels the funds should be used for direct services to low- and moderate-income citizens. He said staff told the commissioners they did not think those recommendations were practical. Mr. Scott made a motion to open the CAAP public hearing, seconded by Mr. Chesney, and passed. Referring to Attachment "D" in the binder, Mayor Neal then called for public comment on the items one by one. (Note: Attachment "D" is also included as part of these minutes.) Mr. Mannti Cummins, with the CPA finn of Gonzalez, Kieschnick, Cross and Farias, spoke about Item 20-Corpus Christi Renewal Community. He said their request is to implement the Renewal Community Tax Incentive Utilization Plan in census tracts 1, 3, 4, 10 and 11. He said the awareness of this program is very low and he discussed the program's benefits. Ms. Sylvia Ford, a steering committee member of the Minority Business Opportunity Committee (MBOC), thanked the Council for their support. She said MBOC provides valuable services to small businesses in the community. Minutes - Regular Council Meeting May 14, 2002 - Page 17 Mr. Tony Cisneros mad a statement from Ms. Rosa Gonzales, who has been volunteering to preserve the Old Bayview Cemetery (Item 33). She said they have planted eight oak trees and installed two flagpoles. In addition, local high school teams pieced together headstones and cleaned around the graves so the historical documentation process could proceed. Ms. Crystal Chavez, a Moody Civic Minded Student, spoke about Item 38-Rolled Curb and Gutter (Manshiem area) and Item 43-Sunnybrook/Evelyn/Gollihar/Kostoryz Area Street and Drainage Improvements. She described the students' efforts in bringing these projects to fruition. Ms. Ann Baker, Mr. Vic Menard, and Dr. Scott Dinkens discussed Item 50-Boys & Girls Club of Corpus Christi. Ms. Baker said they are trying to develop kickball and soccer fields behind their property. Mr. Menard and Dr. Dinkens described the need for those fields. Ms. Linda McKamie, 1275 Glenoak, addressed Item 51-Catholic Charities/Mother Theresa Shelter. She said the Catholic Diocese obtained a grant to purchase the building, which is near City Hall, to provide a day shelter for homeless people. She said the renovations are expected to cost about $225,000 and their request is for $150,000. Mr. Abel Alonzo, 1701 Thames, spoke about Item 52-Corpus Christi Hispanic Chamber of Commeme, which is not recommended for funding by city staff but recommended by the Planning Commission for $100,000 (the request was for $140,000). Mr. Alonzo encouraged the Council to support the chamber's creation ora business accelerator and resource center. Mr. Joe Cisneros, President and CEO of the Hispanic Chamber of Commerce, also asked the Council to support Item 52. He said that last year another proposal for a business incubation program received $300,000 but it has not proceeded. He said the Chamber's proposal is to provide reduced rent in a training environment as a means to accelerate small businesses. He said the Chamber staff have been meeting with city staffin an effort to bring MBOC under the umbrella of the Hispanic Chamber. He asked for the Council's support of Item 52. Mr. Lamont Taylor, representing the Corpus Christi Black Chamber of C0mmerce, said they support the concept of a business accelerator and resource center (Item 52). He said they feel that public-private venture is in the best interest of small businesses. Mr. Freddy Cavazos, Vice President of Corpus Christi United Little Miss Kickball, spoke about Item 54, a request for $37,500 to create a paved entrance way to each of their fields. Dr. Maria Luisa Garza, Gulf Coast Council of La Raza, said their request under Item 55 is for $150,000 to do several things at their new facility, including completing the north parking lot. She described the services provided by the GCCLR, saying they plan to increase the number of students served to 400. Mayor Neal then called for public comment on the ESG program. Mr. Robert McCarty, comptroller of the Women's Shelter, referred to Item 8, a request for Minutes - Regular Council Meeting May 14, 2002 - Page 18 $108,116 (the Planning Commission's and staff's recommendations were for $28,000). He said that during 2001 the shelter served 1,836 individuals, an 18% increase over the previous year. He said he thinks that 60% of police calls in Corpus Christi have some relationship to domestic violence and the Women's Shelter is the only agency that provides the necessa~ security for its clients. He added that several funding sources have been reduced. There were no public comments on Items 1-6 in the HOME program. The Mayor then called for Council questions and comments on Items 1-61 in the CDBG program. Mr. Garrett and Mr. Chesney asked about Item 2-ADA Compliance/Coliseum Restroom Renovations. Mr. Noe explained that the Committee for Persons with Disabilities reviewed and prioritized the funding requests for ADA compliance projects and staffpicked the first four. He said he understands that the Coliseum improvements will require an additional restroom. Additional discussion ensued. Mr. Kelly said that Item 16-Business Incubator/Accelerator is very similar to Item 52- Hispanic Chamber of Commerce. He made a motion to move the $100,000 recommended by staff for Item 16 to Item 52; seconded by Mr. Noyola. Mr. Noyola asked if the Hispanic Chamber's proposal under Item 52 is eligible for funding. Mr. Noe replied that the issue is whether all of the funding would be used for "bricks and mortar" items, which are eligible. He said the Council just reaffirmed their policy that CDBG fimds will not be provided to applicant agencies for the support of operating expenses, which includes rent, leases or staff support for the facility. Mr. Kelly asked if $300,000 had been granted to a similar program last year. Mr. Noe said that program was intended to be operated by the city and they went through the process of trying to identify a space for it. Mr. Longoria said that is still a possibility. Mr. Garcia pointed out that if the request is for a lease it is not eligible but if it is for construction it is. Mr. Noe said that the Planning Commission was recommending $100,000 for Item 52 but staff was not recommending any funding for it since it does not comply with the Council's policies. Responding to Mr. Noyola, Mr. Noe said that during the meetings with the Hispanic Chamber, other entities and city staff, the discussions were regarding the concept of MBOC (or the Business Resource Center as it is now being called) being the lead agency. He said that MBOC is a city-operated department, which means that the restriction on CDBG funds would not apply. Mr. Garcia said the Council has the option of doing away with that policy since they created it. Additional discussion ensued. Mr. Garcia reiterated that city staff never recommended funding for Item 52. However, they did recommend $100,000 for the Business Resource Center (BRC) to have offices, which they thought could be accomplished by having the BRC move into the space the Hispanic Chamber was trying to renovate. He said apparently staff was incorrect in that assumption. Mr. Kelly said he thought the purpose of the Council policy in qtlestion was to not prop up weak projects. Mr. Garcia said that when an agency's operating expenses are funded, a continuing obligation i's therefore assumed. Mr. Kelly said that Item 52 is a project that the Hispanic Chamber Minutes - Regular Council Meeting May 14, 2002 - Page 19 is undertaking, which he does not think falls under the Council's policy. City Secretary Chapa polled the Council on Mr. Kelly's motion and it failed to pass by the following vote: Colmenero, Kelly, and Noyola voting "Aye"; Neal, Chesney, Garrett, Kinnison, Longoria, and Scott voting "No." Mr. Garrett made a motion to move $30,000 from Item 16 to Item 54, seconded by Mr. Longoria. Mr. Chapa polled the Council and the motion passed unanimously. Mr. Longoria made a motion to move $20,000 from Item 16 to Item 55, seconded by Mr. Scott. Mr. Chapa polled the Council and the motion passed unanimously. Mr. Kelly made a motion to move $45,700 from Item 22 to Item 51, seconded by Mr. Chesney. Mayor Neal said Item 22 is a huge program for rehabilitating neighborhoods and he cautioned the Council from moving money out of it. Mr. Kelly withdrew his motion. Mr. Colmenero said he would be abstaining from discussing or voting on Item 51 because he is a board member of Catholic Charities. Mr. Colmenero then made a motion to move $34,470 from Item 25 to Item 34. Mr. Longoria said the emergency home repair grant program (Item 25) mn out of money last year and it is a more useful program than the paving assessment grant program (Item 34). Mr. Colmenero's motion died for lack of a second. Mr. Scott made a motion to move $45,000 from Item 41 to Item 51, seconded by Mr. Chesney. Mr. Chapa polled the Council and the motion passed unanimously (Colmenero abstaining). The Council did not make any motions to change the recommendations on the ESG and HOME programs. Mr. Longoria suggested moving the remaining $50,000 from Item 16 to Item 32 to let MBOC continue developing their plan. Mr. Chesney said the proposal for Item 16 was to fund MBOC under the terms and conditions of a specific meeting. Mr. Longoria withdrew his suggestion. Mr. Kiunison made a motion to move $10,000 fi'om Item 15 to Item 34. Mr. Hector Vallejo, Acting Director of Housing and Community Development, said the only reason staff did not recommend any funding for the paving assessment grant program (Item 34) was because there are still funds available for ongoing paving programs, which they can bring back to the Council. Mr. Kinnison withdrew his motion. Responding to Mr. Chesney, Mr. Noe said that with regard to the ADA compliance for bathrooms at the coliseum, he believes that there is one small item of non-compliance which can be addressed with city funds. Mr. Chesney said he also wanted to obtain more funds for Item 50-Boys & Girls Club. Mr. Kinnison asked if an additional $20,000 would be helpful, and Mr. Menard said it would move the project along; the club will have to supplement it. Mr. Kinnison made a motion to move $10,000 each from Item 15 and Item 33 for a total of Minutes - Regular Council Meeting May 14, 2002 - Page 20 $20,000 to Item 50, seconded by Mr. Chesney. Mr. Kinnison said the Mayor had written a letter about funding the Old and New Bayview Cemeteries' two-year program at $25,000 each year. Mr. Chapa polled the Council and the motion passed unanimously. Mayor Neal reviewed the changes that were made with the Council's motions. Mr. Garrett made a motion to tentatively approve the FY02 CAAP funding as amended. The motion was seconded and it passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Longoria, Noyola, and Scott voting "Aye" (Colmenero abstaining on the Catholic Charities item). A motion was made, seconded and passed to close the public hearing on Item 22. Mayor Neal said the Park and Recreation presentation (Item 20) was being deferred until the May 21st Council meeting. Mr. Garcia reiterated that three of the executive sessions (Items 2 [.b., 21 .c. and 21.e.) were not discussed at this meeting and will be deferred until next week. The Mayor called for the City Manager's report. Mr. Garcia said that next week there will also be an executive session about the South Wharf project and he referred to his memo to the Council about the cable franchise agreements, which will be discussed on May 21 st. He said he will deliver the proposed FY 2002-03 budget to the Council on May 28th, with budget discussions during the June and July Council meetings and adoption of the budget on July 23rd. Mayor Neal appointed the following at-large citizens to the stakeholders' ad hoc committee for the marina development project: Manuel Buentello, Steve Van Matre, Derrick Reeves and Kathy Bernard. He said Michael Terry will represent the city's interests and serve at the pleasure of the stakeholders' group as counsel. The Mayor called for Council concerns and reports. Mr. Colmenero reported on a recent meeting of the TML Tax and Revenue Committee, of which he is a member. Mr. Garrett asked if the depa~'tment heads will be available to answer questions during the budget discussions, and Mr. Garcia said they will be. Mr. Garrett also stated that some citizens at last night's town hall meeting expressed frustration about city staff not returning their telephone calls. Mr. Scott asked about the status of the move into the Frost building. Mr. Garcia said there are two phases. Staffis in the midst of the first phase, which is moving in the top three floors; the second phase is the One-Stop Center, which should be completed by September. Mr. Scott commended Mr. Art Sosa for his efforts and he asked about the arena ground breaking. Mr. Noe said that is scheduled for November 2002. Mr. Kelly also complimented Mr. Sosa and he asked about the landscaping on Leopard Street. Mr. Massey said the contractor opted not to do that work and another contractor will have to be found. Mr. Kelly also asked about the Omaha Street project, and Mr. Massey said he will provide that information. Minutes - Regular Council Meeting May 14, 2002 - Page 21 Mr. Noyola asked if the Moody Civic Minded Students could make a 15-minute presentation during a Council meeting so that the Council does not have to go to Moody during the last week of school. Mayor Neal asked what is the purpose of the presentation. Mr. Noyola replied that he bas not seen it. The Mayor said that every week for the last month he has offered to meet with the students at the school but no one has taken him up on his offer. City Secretary Chapa said the Council had said they wanted to meet three at a time with the Moody students. The Mayor said he would rather go to the school and spend more than 15 minutes with them. Mr. Chapa said he will coordinate those meetings with Mr. Danny Noyola at Moody. Mayor Neal thanked the Council and staff for the successful conclusion of the CAAP funding process. There being no further business to come before the Council, he adjourned the Council meeting at 8:52 p.m. on May 14, 2002. Revised 05-15-2002 ATTACHMENT "D" CITY OF CORPUS CHRISTI FY2002 ANNUAL ACTION Recommended CDBG Program FY2002 CDBG Allocation Repmgrammed Funds Program Income from Rehabilitation Program TOTAL FUNDS AVAILABLE FOR FY2002 CDBG PROGRAM $ 4,950,000 $ 251,842 $ 700.000 $ 5,901,842 ~A Compliance - Bren~ood Street* 1 147,000 Reconstm~ion of existing sidewalk, 1500 I.f. and se~ions of cu~ and guEer, approximately 1~ I.f. along the westside of Bren~ood Street adjacent to the Sam Houston Elemen~ Sch~l. ~A Compliance - Coliseum Res~oom Renovations 3 120,000 Renovate the existing Southside Coliseum restrooms to bdng them into ~11 ~mplianco with ADA. ADA Compliance - Convention Center Restroom 4 120,000 Renovations Renovate the convention centeCs existing Southside Exhibit Hall men's and women's restrooms in order to bdng them into ~11 compliance with the provision of the ADA A~. ADA Compliance - Glenfield Drive* 5 52,000 R~nstm~ion of existing sidewalk, 900 I.f. along Glenfield Drive ~thin the Westhaven Term~ Su~ivision. ~A Compliance - Individual Reques~ 11 221,000 221,000 1221,000 221,000 Construction of cu~ romps ~era non exist or where existing ~ ramps ara re~d~ to be inad~uate for use by persons ~h di~bil~ies. ADA Compliance - Leopard S~t be~een Rose & 15 25,000 Palm* Design of sidewalk, cu~ ramps, ~vement markings, minor ~vement re~im and minor drainage r~nstm~ion improvements on L~pard Strut ~een Rose and Palm Drive. ADA Compliance - Ma~ Greif School ~ea 17 85,000 85,000 ~ 85,000 85,000 AddEional ~nds for design and ~nstm~ion of additional / cu~ ramps in compliance ~h Texas Depadment of Licensing and Regulations ~ere non exist or ~ere existing cu~ ramps are found to be inadequate for use by persons with disabilities. ~A Compliance - Memorial Hospial ~ea 19 26,000 26,000 J 26,000 26,000 Additional ~nds for design and ~nstm~ion of additional curb ramps in compliance ~th Texas Depadment of Licensing and Regulations where non exist or ~ere existing cu~ ramps ara found to be inadequate for use by ~mons ~th disabil~ies. ~A Compliance - MHMR ~ea* 21 690,000 Funds for design and constm~on of cu~ ramps, sidewalks, driveways, minor cu~ and guEer improvements and pavement repair to achieve ADA ~mpliance on ~e struts I~ding to MHMR offices on B~d~y S~eet. 10 ADA Compliance - Nei9hborhood Park Improvements 24 350,000 This project will provide the funding for the installation and replacement of ADA compliant playgrounds, trails, lighting and picnic areas at Chiquito, Lawson, and Prescott Parks. 11 ADA Compliance - Oak Park Replacement Restroome 25 125,000 Provide funding for the construction of a replacement ADA compatible restroom facility at Oak Park. The existing restrooms are in a deteriorated condition and in need of replacement due to age and abuse. 12 ADA Compliance - Spohn Hospital Area 26 53,000 Additional funds for design and construction of additional curb ramps in compliance with Texas Department of Licensing and Regulations where non exist or where existing curb ramps are found to be inadequate for use by persons with disabilities. 13 Aquatic Facilities Site Improvements 28 135,000 Provide funding for adding small water park type slides, water toys and ADA pool improvements as needed. Funding would also be used to add shade structures and I do parking lot overlays as needed. The aquatic facilities would include Greenwood Pool, HEB Pool, Joe Garza Pool, and T.C. Ayers Pool. 14 Asbestos Testing and Removal Grant Program 29 222,000 50,000 50,000 50,000 State and Federal regulations require compliance with State asbestos health protection rules and Federal emission standards for hazardous air pollutants. Asbestos testing and removal is required on housing that is being demolished through the Cede Enforcement and housing activities. 15 Ben Gar-za Gym Locker Room Improvement 30 65,000 65,000 65,000 55,000 Provide funding to install lockers and additional showers in the locker rooms and restrooms at the gymnasium. The facility needs these types of support facilities installed in order to better serve its customers. 16 Business Incubator/Accelerator 31 300,000 100,000 50,000 Develop and sustain an economic development tool for the City of Corpus Chdsti that is designed to accelerate the growth and success of small businesses by providing and/or emerging businesses. 17 Code Enforcement 34 109,938 109,938 109,938 109,938 Sixty-five pement (65%) of the Cede Enforcement effort to eliminate slum and blight, including removal of substandard structures, high weeds, debris, garbage, trash and other health hazards to the public is spent in target areas. The general fund supports one hundred percent (100%) of the dean up and mowing involved in the elimination of slum and blight. This request is to 3rovide only twenty percent (20%) of the staffing cost to supplement the efforts in the eligible CDBG areas. ~, ~OrJ'ECT~D.EsCRIPTION: , . R~n~,= com~: C6~n](~ltr! 18 Comprehensive Planning Assistance 35 75,000 75,000 75,000 75,000 Comprehensive Planning for the City of Corpus Christi includes all areas inside the city limits and the City's Extraterritorial Jurisdiction. The Comprehensive Planning program is an ongoing effort to develop new plans and regulady update previously adopted plans. Staff drafts of the plans include input from affected public agencies such as the U.S. Fish and Wildlife Service, Texas General Land Office, Texas Department of Transportation, Texas Parks and Wildlife, Texas Natural Resources and Conservation Commission, and ether affected governmental entities. Before any plans can be approved by the City Council public input in the form of public headngs are conducted by city staff and city boards including the Planning Commission and the City Council. 19 Convention Center North Parking Lot 36 2,400 Construct two (2) curb cuts leading from the north parking lot to the sidewalks leading to the Convention Center access ramp on the outside of the Selena Auditorium. 20 Corpus Christi Renewal Community 37 86,000 20,000 20,000 20,000 To provide funding for staff support to implement the Renewal Community Tax Incentive Utilization Plan and Course of Action. An initiative to encourage public- pdvate collaboration to generate economic development and community revitalization in Census Tracts 1, 3, 4, 10 and 11. 21 Corpus Christi Renewal Community-Small Business- 42 250,000 Minor Rehab and Facade To provide small businesses Iow interest loans for up to $50,000 for minor rehab of their building and/or renovation of the facade of their building. 22 Demolition Grant Program 45 215,700 215,700 170,000 215,700 Elimination of slum and blight, including demolition of substandard structures and removal of high weeds, debds, garbage, trash and other health hazards to the public. 23 Demolition/Replacement and Relocation Grant 46 200,000 200,000 . 200,000 200,000 Funds are used to demolish structures of property owners being assisted through the Demolition/Replacement Loan Program. Under the program, existing structures are demolished and a new replacement unit is reconstructed. It is anticipated that 20 units will be demolished at an estimated cost of $4,000 per unit. ($80,000 for demolition) Part of these funds will be used to provide grants to assist these homeowners with their relocation costs and related expenses while their house is being reconstructed. It is estimated that 20 homeowners will need relocation assistance at an estimated cost of $3900.00 per homeowner for six months of relocation. ($78,OOO) 24 Dr. H.P. Garcla Park Softball Complex Site 47 75,000 Improvements Provide funding for backstop fencing, windscreens, shade structure and bleacher improvements to address safety and playing condition concerns at the complex. · P, ~gECT & DESCRIPTI-~R O~ Page .~ Request Staff ~!~.irtg ~ity # Recomm ; C~m~ c~bncll : : ~'~ ReC~htm ~ ~.~l&Pt~ 25 Emergency Home Repair Grant Program 48 850,000 884,470 864,470 684,470 Emergency repair grants up to $6,500 are provided to homeowners who are very Iow income eldady and/or persons with disabilities. A majority of the repairs are for roofing, plumbing, electrical, heating and minor structural. It is anticipated that emergency repairs will be performed on 130-135 units· 26 FY2003 Consolidated Plan Preparation 49 90,000 90,000 90,000 90,000 The Department of Housing and Urban Development (HUD) requires each local jurisdiction to consolidate into a single submission the planning and applications for the Community Development Block Grant (CDBG), HOME investment Partnership (HOME), and the Emergency Shelter Grant (ESG) Programs. In accordance with HUD regulations, the City is required to submit a new consolidated plan for FY2003. The "Plan," including both a planning document and an application for the CDBG, ESG and the HOME Programs ara developed to achieve the goals to principally serve Iow and moderate income residents. The Consolidated Annual Action Plan describes the activities and projects to be assisted with funds raceived under these programs and other HUD programs that help to meet housing and community development objectives. This project proposal will in essence fund the preparation needed to conduct a new consolidated plan for FY2003. 27 Garcla Arts Education Ctr Area Street Improvements 50 0 Phase 1 request to authorize the use of construction funds approved in Phase I for ROW acquisition in Phase 2. The preliminary design under review recommends a shift in the alignment of 18= Straet to the east to minimize the number of parcels to be acquired. This area consists of numerous 25 foot wide lots zoned A-2 and I-2 although the land use is residential. Request for construction funds will be made in next year's allocations. Additional funds are not requested for Phase 1 at this time. 28 Garcla Arts Education Ctr Area Street Improvements 52 50,000 Phase 2 Additional funds for right of way acquisition. Request is to authorize the use of construction funds for ROW acquisition previously approved in Phase 1 and request additions funds for right of way acquisition. The preliminary design under review racommends a shift in the alignment of 18~ Street to the est to minimize the number of pamels to be acquirad. Additional ROW Marguerite Street between 18t~ and I'P Street is also included in this proposal. This area consists of numerous 25 foot wide lots zoned A-2 and I-2 although the land use is residential· Request for construction funds will be made in next year's allocations. 29 General Administration 54 455,600 455,600 455,600 455,600 Administration support for the CDBG, HOME and Emergency Shelter Grants programs. This activity is responsible for planning, oversight, coordination, staff supervision, monitoring and management· Technical assistance is provided for special projects that foster housing and community development opportunities. 30 Joe Garza Recreation Center Improvements 55 85,000 85,000 85,000 85,000 This project will provide the funding for roll up secudty shutters, new outdoor sports court surfacing, pavilion raplacement lights, backboards, scoreboards and parking lot oveday. Pag® Request Staff Planning PROJECT& DESCRIPTION ;~i: ~~ ,: Recomm Comm; C(~U nC~!i 3t Lead Based Paint Grant 56 50,000 50,000 50,000 50,000 Federal regulations for the HOME and CDBG programs require compliance with Lead-Based Paint regulations in HUD assisted housing. The purpose of the Lead-Based Paint regulation is to protect young children from lead based paint hazards. These regulations apply to housing built prior to 1978. However, they do not apply to emergency repair projects, emergency shelter housing, zero bedroom units, efficiency units, vacant units to be demolished and non-residential property. Additionally, these regulations do not apply to housing for the elderly or person with disabilities, unless a child under the age of six will reside in the unit. These funds will be used to test for the presence of lead-based paint or clearance testing for the presence of lead dust. It is anticipated that between the two programs, 100 houses will need a clearance test or paint test performed at an estimated cost of $500.00 per house. 32 Minority Business Opportunity Committee (MBOC) 57 140,000 110,000 110,000 110,000 This will fund staff salaries for the support of the MBOC program. MBOC is an information clearinghouse for the City of Corpus Christi that provides comprehensive information on certifications and contracting opportunities from all levels of government. MBOC is the first contact information resource for sub-contractors, general contractors, entrepreneurs, and government officials in regards to small business opportunities. 33 Old & New Bayview Cemeteries Restoration Master 63 50,000 35,000 35,000 25,000 Plan Old Bayview and New Bayview Cemeteries are in dire need of restoration efforts related to the tombstones and the cemetery monuments in the two cemeteries. This is a historically significant project that will decrease the blight in that area of the city. The funding for this project would be used to contract for special historic reconstruction master design services. 34 Paving Assessment Grant Program 65 70,000 Grants are provided to qualified Iow income families to pay for street improvements assessments, fully or partially funded with CDBG funds. 35 Rehabilitation Loan Servicing & Delinquent Payment 66 55,889 55,889 55,889 55,889 Collection This will pay for staff salaries to support the administration of loans provided to Iow income homeowners funded through the Rehabilitation Loan Program. 36 Rehabilitation Services 69 602,600 602,600 602,600 602,600 Provide administrative support services to Iow and moderate income persons, such as loan processing, development of specifications and plans, inspections, housing counseling and other related services associated with the various loan and grant programs. 37 Renovation of Northwest Plaza Stairs 70 96,000 Renovate the steps leading up to the northwest section of Convention Center's Plaza so that the stairway adequately drains water from the steps and the handrail system is user-friendly. 38 Rolle~ Curb and Gu~er - ManshJem ~ea 71 520,000 520,000 520,000 520,000 Funds for design and ~nst~ion phase of underground storm d~aina~e lines to se~e the Manshiem area as defined. This pro~sal includes the e~ension of a 5x5 ~x culve~ conne~n9 at ~ollihar south on Evelyn and a 48" RCP on Sunnybr~k to cross ~nne~ to the existing system se~in~ Manshiem area. This proj~ would be combin~ ~th the design and constru~ion of Evelyn Street in the Sunnybroo~Evelyn/Gollihar/Kosto~ area. 39 SinGle Famil~ ~ehabJlitation Loan ProGram 73 950,000 950,000 950,000 950,000 Provides loans to Iow and m~erate income hom~wners to rehabili~te their homes. It is anticipated that unit~ ~11 ~ rehabili~ted and 20-25 units wilJ ~e reconst~ed. 40 Skate Pa~ ProJe~ 74 450,000 This proje~ ~11 provide the lundin0 for the construction o~ a new s~te pa~ facili~ that will be ~nstm~ on an approximately % acre site to be leas~ from the Co~us ~hdsti Boys and Oi~s Club. The proj~ will ~nsist of concrete in-the~round skating facili~ ~th fencing and restr~m~o~ce sup~ facilities. The Boys and Girls Club Ex~utive Board has endo~ this proj~t in concept. If the ~ys and oi~s Club leased site does not mate~alize, the pm~s~ second site for the proje~ would be the Dr. H.P. Garcia Park. 4~ Southmoreland Addition ~ea S~t Improvement ~ ~,000 60,000 60,000 ~5,0~ Phase 3B and 4B Provide lundin9 for the design of approximately 2300 I.f. of street improvemen~ on Le~s from Clemmer to Watson, 300 I.f.; Watson ~om Ayers to Naples, 1250 I.f.; Naples from Richa~ to Watch, 750 I.f. Improvements include desi0n of pavement 28' 8-8, cu~, gu~er sidewalks, driveways and underoround drainage for Phase 3B. Funds for ~nst~ion ~11 ~e r~uested in ~ture yea~. 42 Southslde Senior Center Deslon 86 78,000 Provide lundino for the I~tion study and sewices for a new Southside Senior Center ~cili~ of approximately 7,250 square feet in size. 43 Sunnybroo~EvelynlGolliharlKosto~z ~ea St & 87 37~,~0 37J,000 37J,000 37~,000 O~lnaGe Improvement ~) Design and construction (street and drainaoe) for Evel~ Strut. Sco~ of ~nst~ion consists of 28' B-B pavement cross se~ion with cu~, ou~ers, sidewalks, and driveways. Evelyn Street is pro~s~ to have the : underground storm drainage installed as pa~ of the ~oll~ ~0~ aod ~u~eF Replacement - Manshiem Area Phase ~. Future CDBG allocations ~11 fund phased improvements in this area. 2) Authorization to improve Sunnybr~k - Aye~ to Kosto~ in prelimina~ design approv~ in FY0~ ($10,000). ~ T.C. Aye~ Recreation Center Improvemen~ 92 35,00Q 20,500 20,500 20,500 Provide funding for intedor improvements such as a new HVAC system, lightinG, ceilin9 tiles and painting inside and outside of the buildinG. 45 Weed & Seed Program 93 70,000 50,000 50,000 50,000 This will provide funding for staff suppo~ of the We~ & Se~ Program. The We~ and Se~ Pr~ram is ~ comprehensive multi-agency approach to combating violent crime, drag use and gang activi~ in high chine neighbo~ds. The goals are to ~eed" out crime from tapered neigh~ds and to "s~" the target site ~th a wide range of cdme prevention pr~mms and human se~ices to prevent cdme from re-occuffing within the ta~eted area. 46 Woodlawn Pa~ Spo~ Pavilion 98 145,0~ This proje~ will provide the funding as need~ to mpla~ an existing deteriorated outdoor basketball cou~ Io~t~ ne~ to the Oak Pa~ R~reation Center with a ~vered s~ffs pavilion, including lighting, for use at an~ime or in all weather conditions. 47 YouthWo~ 99 300,000 Proposed to implement YouthWo~s over a thr~year ~d~ paAnedng with the same agencies that have commi~ in principle to the con.pt of training youth and building affordable housing. TOTAL CI~ PROJECTS 9,324,127 5,507,697 5,361,997 5,392,697 * These proposals were previously submitted in FY '01 but were declared partially eligible. The Committee for Persons with Disabilities requested reconsideration of this funding request and scope of improvements. NON PROFIT ORGANIZATIONS ~ Advanced Housing ~ternatlve Co~ - Oak Pa~ Complex 102 360,000 1 ) Ex.nd available units from four to ~elve; 2) Build eight new units; 3) Remove one building; 4) Lands~ and fence the lot. 49 Advanced Housing ~ternative Co~ - South Bluff 111 573,000 ~a~en~ Purchase prope~ ne~ d~r which would allow us to expand availabl~ un~s by thi~ ~and-thm~ ~rooms; 2) Build thi~ Paint existing units; 4) ~esu~ac~ pa~i~g lot. ~ Boys & Girls Club of Co~us Christi 120 96,820 56,820 56,820 76,820 Const~ction/irrigation of Kickball and soc~r fi~lds; installation of windows/framing across froRt of Boys & Girls Club. 51 Catholic Charities- Mother Theresa Shelter 129 150,000 45,108 90,808 90,108 Improvements to a public facili~ to include bathing facilities ~th restr~ms and larger r~m to be used for eating area., i.e. light snacks, coffee, etc. Smaller room will be renovated to us~ for r~ding, ~unseling, gathering place, etc. for homeless men and women. Improvements will ~mply with all ADA requirements. Capital Contdb~on $96,600 52 Corpus Christi Hispanic Chamber of Commerce 144 140,000 100,000 BA~C ~11 assist small ~mpanie~usinesses and house them , for a specific ped~ of time and provide management and business training assis~nce. Cap,al Contdb~ion $I0,~0 # ?~A~3ECT & DESCR PT oN Request'; 53 Corpus Christi Hope House, Inc. 156 58,321 10,292 10,292 10,292 Renovations to comply with ADA r~uirements and to improve the living conditions at the homeless sheltem of Corpus Christi Hope House. Capital Contdbution $10,292 ~ Co~us Christi United Li~le Miss Klckball 176 37,500 30,000 To bdng s~ds ~mplex facilities into ~mpliance ~th Amed~n Disabilities A~ by creating a pav~ entrance way to each of the fields. 55 GuECoast Council of La Raza 186 150,000 12,000 12,000 32,000 Will enable the Gulf Coast Council of La Raza, Inc to complete the 1 ) No~h Parking lot that will be used as a student Parking , lot; 2) Outlining the landscaping of the No~h Pa~ing areas along Home Rd., 3) Addition of a I~king gate for the Fire Lane Fire Depa~ment ~11 retain Keys; 4) Amhit~ural, engineering, and constru~ion testing required for the pmje~. Cap,al; Contdbution $10,000 ~ LU~C Village Pa~ ~. 203 79,500 79,500 79,5~ 79,500 To fund an a~ivi~ ~ud ~ver/shelter to prot~ ~mmuni~ from weather element. Cap~al ~ntdbution $10,000 57 Neighbo~ood Centem of Co~us Christi 213 60,025 60,025 60,025 60,025 Rehabili~tion and improvements to the Marguerite Neigh~ ~nter, at 2020 Marguerite Strut, to include removal of all e~erior cedar facing, replace ~ ~th new siding, provide for interior renovations to the existing restrains and to comply ~th cuffent ADA s~ndards. Capital Contdbution $~0,000 58 Nueces Coun~ Communi~ Action Agency 228 80,000 80,000 80,000 80,~ To weathedze homes ~cupied by families from Iow to ve~ Iow incomes in ~rget areas. Capital Contdbution $363,428 59 The Council on ~cohol & Drag Abuse - Coas~l Bend 236 54,750 To rem~el and restore the 'old 18~ SE~t" clubhouse us~ for alcoholi~ anonymous and drag rehabili~tion of citizens of Co~us Chdsti and coun~-~de area. F~us is youth, adult treatment and prevention. 60 Wes~ide Business ~soclation 253 35,000 35,000 35,000 35,000 To provide ~nding for ele~l, iffigation and base for seeing a~ pie~ to finalize the completion of Cmsstown and Agnes B~utifi~tion Proje~. Capital Contribution $4,000 61 YMCA of Corpus Christi ' 265 15,400 15,400 15,400 15,4~ To fund the improvement of accessibili~ of mobili~ impaired individuals through renovation of restrain area in men's I~ker TOTAL NON PROFITS 1,890,316 394,145 539,~5 509,145 G~ND TOTAL 11,214,443 5,901 ,~2 5,901 ,~2 5,901 ,~2 PARTIALLY ELIGIBLE PROJECTS CITY DEPARTMENT ADA Compliance - Brentwood Street* Reconstruction of existing sidewalk, 1500 I.f. and sections of curb and gutter, approximately 1000 I.f. along the westside of Brentwood Street adjacent to the Sam Houston Elementary School. REASON: Any expense associated with repairing, operating, or maintaining public facilities, improvements, and services is ineligible. CFR 570.207(b)(2)(i) The installation of curb cuts are eligible. ADA Compliance - Glenfield Drive* Reconstruction of existing sidewalk, 900 I.f. along Glenfield Drive within the Westhaven Terrace Subdivision. REASON: Any expense associated with repairing, operating, or maintaining public facilities, improvements, and services is ineligible. CFR 570.207(b)(2)(i) The installation of curb cuts are eligible. INELIGIBLE PROJECTS CITY DEPARTMENT DosslCokelClevelandlLesterl Leopard/Mestina & Leopard Area Street Improvements* Preliminary design of phased in street improvements including pavements and underground drainage, curb, gutters, sidewalks, driveways and compliance with ADA guidelines. REASON: Any activity that serves an area that is not primarily residential in character shall not qualify under the area benefit criterion. CFR 570.208.(a)(1)(i) NON-PROFIT AGENCY Corpus Christi Animal Rights Effort "CCARE" - CCARE was created in order to reduce or eliminate the unwanted animal population. The cost of euthanizing the thousand of animals each year due to dog & cat population is costly to the community. In addition to high cost dog & cat population presents a health hazard by way of rabies, ticks, fleas and animal bites. REASON: The Community Development Block Grant Program has adopted a resolution on March 22, 1994, and reaffirmed on November 20, 2001, that states that "no Community Development Block Grant Funds be authorized to applicant agencies for the support of operating expenses." REFERRED PROJECTS TO the Home Program for funding consideration NON-PROFIT AGENCY , Advanced Housing Alternative Corp - South Bluff Apartments Purchase property next door which would allow us to expand available units by thirty two- and-three bedrooms; 2) Build thirty new units; new office & release one bedroom apartment; 3) Paint existing units; 4) Resurface parking lot. Advanced Housing Alternative Corp - Oak Park Complex 1) Expand available units from four to twelve; 2) Build eight new units; 3) Remove one building; 4) Landscape and fence the lot. Recommended FY2002 Emergency Shelter Grant (ESG) Program FY2002 ESG Allocation $173,000 I Catholic Charities I 30,000 15,000 15,000 15,000 Provision of Homeless Prevention including short-term subsidies, security deposits or 1`t month's rent, mediation programs, legal services and payment to prevent foreclosure on a home. 2 Corpus Christi Hope House 21 20,000 10,000 10,000 10,000 Provide emergency shelter and related services to teenage pregnant and homeless. 3 Corpus Christi Metro Ministries 46 85,000 50,000 50,000 50,000 Continuation and enhancement of existing shelter operations and supportive services. 4 Gulf Coast Council of La Raza 68 43,300 25,000 25,000 25,000 To assist in providing services to runaway, homeless, abused and neglected children ages 6 through 17 who ara in need of residential, counseling, and advocacy services in order to expedite reconciliation with their families. 5 Mary McLeod Bethune Day Nursery, Inc. 87 35,000 10,000 10,000 10,000 To assist the homeless with child care services that presently is needed by parents in shelters that ara in short and long term treatment programs and do not qualify for other state child care programs. 6 Salvation Army 99 50,000 20,000 20,000 20,000 Salvation Army operates a wide variety of social service programs which benefit the homeless. These include the Red Shield Ledge Dining Room, Red Shield Lodge, shelter for men, Project Bridge, the only shelter in the city which allows families to remain together; Project Bridge for families and individuals; a Homeless Veteran's program; Voice Works, a voice mail program which enhances employment opportunities; crisis aid to families and individuals; seasonal aid, including the distribution of food and clothing; job training, life skills counseling; information and raferrals; and the only mobile feeding unit in the area. 7 The Ark Assessment Center & Emergency Shelter for Youth 114 52,823 15,000 15,000 15,000 Provide a caring intervention for abused and neglected males and females from birth through 17 years of age by placing them in a secure environment. 8 The Women's Shelter 134 108,116 28,000 28,000 28,000 Emergency shelter for homeless victims of domestic violence and sexual assault and their children. Additional supportive services include, but are not limited to, safety planning and counseling for adults and children, legal advocacy, community resource coordination, assistance with victims compensation claims, assistance in obtaining employment, affordable housing, and child care. TOTAL 424,239 173,000 173,000 173,000 FY2002 HOME Allocation RECOMMENDED FY2002 HOME PROGRAM $1,985,000 A deferred, forgivable loan not to exceed $3,000 may be provided to Iow income, homebuyers for the purpose of meeting down payment and closing costs expenses. ADMINISTRATION/TECHNICAL ASSI~TANCF Administrative funds for staffing, planning, overnight, coordination, staff supervision, monitoring and evaluation, contracting, recordkeeping/reportiog and overall program management. Technical assistance may be provided to enhance the capacity of CHDO's, nonprofits, owners/investors of rental property and other organizations that may participate in the program. Also includes administrative funds for direct operating support for the CHDO's. MINOR REHABILITATION GRANT PROGRAM Minor rehabilitation of units with more than $1,000 but less than $6,500. Grants may be provided to homeowners who are 62 years and older and/or persons with disabilities. MAJOR REHABILITATION LOAN PROGRAM Loans of 0% to 3% for qualified income families with up to a 20 year term. Reconstruction of owner-occupied units unsuitable for rehabilitation and to provide for the reconstruction of new suitable units. Relocation grants may be provided for temporary relocation and a grant to provide funds to demolish and construct the replacement unit. NEW CONSTRUCTION Construction of new single family \ Multi - housing units. The units must remain affordable for a minimum of 20 years. A deferred loan, not to exceed $20,000, payable after the 1st mortgage is paid, may be provided to Iow income home buyers for the pumhase of a home. The amount of the defen'ed loan may be based on HUD income limits. Contracting with subrecipients by the CCClC is permitted. 549,000 198,500 100,000 250,000 589,750 549,000 198,500 100,000 250,000 589,750 549,000 198,500 100,000 589,75O COMMUNITY HOUSING DEVELOPMENT ORG. (CHDO) * 6.I TOTALS NEW CONSTRUCTION Low interest loans/grants to Community Housing Development Organizations (CHDO's) for the purpose of constructing new/rental housing units. ACQUISITION AND REHABILITATION Financing to acquire and rehabilitate existing rental housing which would be owned, operated or sponsored by a Community Housing Development Organization is proposed as an activity. Housing acquired through this program may be made available to Iow income individuals under affordable conditions for a period up to 15 years. 297,750 297,750 297,750 1,985,000 1,985,000 1,985,000 *COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS (CHDO)The City of Corpus Christi will set aside at a minimum the 15% ($297,750) required by regulations for use by the CHDO within the 24-month period. The City of Corpus Christi will provide technical assistance and capacity building as necessary. 2 NO ATTACHMENT FOR THIS ITEM 3 a. ANIMAL CONTROL ADVISORY COMMITTEE - Two (2) vacancies with three- year terms to 5-31-05 representing the category of Community at Large. It shall consist of seven (7) members. Terms will be for three years. At least one member shall be a veterinarian. Two members shall be members of local animal welfare organizations (at least one of the organizations must operate an animal shelter). The remaining four members shall represent the community at large. All members shall serve until their successors are appointed and qualified and each shall be a resident of the City. The City Manager, or his representative, the Director of the City-County Health and Welfare Depamnent or his representative and the Animal Control Supervisor shall serve as ex-officio members of the Board without vote. The Board, by majority vote, shall elect its own Chairman who shall preside at all meetings of the Board and a Vice Chairman who shall act as president in the absence of the Chairman. The Director of the City-County Health and Welfare Department or his designated representative shall serve as the secretary of the Board. MEMBERS TERM ORIGINAL APPTD DATE Gail Hoffman (Comm at Large), Chairperson Barbara Airheart (Corem at Large), Vice-Chair Dr. Alan Gan'err (Veterinarian) Drew M. Reining (Comm at Large) Susan Thiem (Comm at Large) Denny Bales (Animal welfare/shelter) Chris Cooper (Animal welfare) City Manager or Representative Dr. Nina Sisley, Dir of Public Health Jeff Beynon, Supervisor, Animal Control 5-31-03 5-31-02 5-31-04 5-31-02 5-31-03 5-31-04 5-31-04 Ex-Officio, Nonvoting Ex-Officio, Nonvoting Ex-Officio, Nonvoting 6-13-00 3-15-94 8-21-01 9-26-95 6-13-00 7-10-01 7-10-01 * Has met the six-year service limitation and is ineligible for reappointment ** Resigned to serve on the Commission on Children & Youth INDIVIDUALS EXPRESSING INTEREST Leonides Botello, Jr. Information Systems Manager, Law Office of William D. Bonilla. Professional/community service includes: volunteer for Pets and Animals Life Shelter (PALS) and President of IHU Solutions - Web Design and Hosting. (Community at Large) (6-18-01) Sherry Dunlap Owner, Circle D Sandblasting. Active with the following organizations: Corpus Christi Animal 05-21-02.WPD, p. 1 Alyce J. Franke Cheryl Martinez Donna Patterson Judith Ann Sisson William T. Watson Rights Effort (CCARE), U. S. Humane Society, the Corpus Christi Business Roundtable (CCBR) and the Chamber of Commerce. (Community at large) (3-06- O2) President, Lost Pet Hotline. High school graduate, some college. Retired - Lost Pet Hotline volunteer. (Local animal welfare agency) (6-27-01) Self-employed - Owner, The Pet Nanny. Executive Officer (Secretary) of Peewee's Pet Adoption World and Sanctuary, Inc. Previously on the board of the Gulf Coast Humane Society. Heavily involved in obtaining the 2200 signatures for the animal cruelty petition that was eventually incorporated into the city code effective 9/01/01. (Local animal welfare agency - Shelter) (6-26-01) Executive Director, Gulf Coast Humane Society. Deeply involved in city animal issues by virtue of her employment. Previously served on the Flour Bluff I.S.D. School Board for five years. (Local animal welfare agency/Shelter) (4-22-02) Founder and operator, Coastal Bend Small Breed Rescue. B.S. in Pharmacy, Schwartz College of Pharmacy, L.I.U. Brooklyn, NY. Volunteers with Lost Pet Hotline. Owner of Laguna Shores Pet Salon (pet grooming and boarding). (Local animal welfare agency) (6-27-01) Veterinarian, Animal Clinic of Flour Bluff. D.V.M. and Bachelor's degree from Texas A&M University - College Station. Member of the AVMA and the CBVMA. Has served on the Zoning Board in Levelland, TX (1982-88) and has been active with several soccer associations. (Veterinarian) (8-17-01) 05~21-02.WPD, p. 2 b. COASTAL BEND HEALTH FACILITIES DEVELOPMENT CORPORATION - Nine (9) vacancies with two-year terms to 4-01-04. COMPOSITIQN Board of Directors -- nine (9) members for two-year terms; seven (7) members to be appointed by the City Council, one to be the City Manager of the City, and one to be the Assistant City Manager of Urban Development of the City. Officers to be elected by the Board. ORIGINAL MEMBERS TERM APPTD. DATE * Jack Solka, Chairman 4-01-02 10-16-84 * Erika Escobedo-Benson 4-01-02 5-11-99 * Judy Telge 4-01-02 7-03-90 * Dr. Richard Davis 4-01-02 6-08-99 * Annie J. Castro 4-01-02 7-03-90 * Dr. Lawrence Wilk 4-01-02 4-14-98 * Dan Winship 4-01-02 4-07-92 City Manager ACM, Development Services Seeking reappointment NOTE: The Coastal Bend Health Facilities Development Corporation did not meet in 2001-2002. OTHER INDIVIDUALS EXPRESSING INTEREST Vicky Alexander Registered Nurse in Pediatric ICU, Driscoll Children's Hospital. B.S. in Nursing, U.T. Health Science Center, San Antonio, TX. Professional and community activities include: CPR instructor, teen mentor, pediatric life support instructor, Women's Shelter volunteer. Past honors include CCPOA award for being Auxiliary Chairperson and awards for participating in free CPR classes. (5-16-01) Gloria Farias Retired. Licensed social worker. Professional and community activities include: former member of Senior Community Services Advisory Committee, Mayor's Council on Senior Citizen Affairs, Hispanic Council on Aging and Asst. State Coordinator for AARP. Recipient of AARP Outstanding Leader 05-21-02.WPD, p. 3 Mike T. Johnson William Koprowski, J.D., Ph.D. Marilyn J. Kostelnik Margaret Palacios Billy Ray Sayles Russell Brent Stowers 05-21-02.WPD, p. 4 Award - 2000 and the National Hispanic Council on Aging Distinguished Fellow Award - 2001. (11-26- Administrator, Chrisms Spohn Hospital South. Vice- President, Chrisms Spohn Health System. M.P.A. in Public Administration, Texas Tech University. Certified Registered Nurse and Licensed Nursing Facility Administrator. Professional activities include: Diplomat, American College of Healthcare Executives - Regional Advisory Board and American College of Healthcare Administrators. (4-01-02) Professor & Program Manager of Health Admini- stration, Texas A&M University-Corpus Christi. J.D., University of South Carolina; Ph.D., Temple University, M.S. from University of Southern California; B.A. from Temple University. Member of Texas Healthcare Information Council and Board Member of Healthcare Financial Management Association. Special awards received include: Fulbright scholar. (7-25-01) Assistant Professor of Nursing, Texas A&M University-Corpus Christi. Registered nurse and holds a Bachelor's degree and Master's degree in Nursing. Has participated in the following community activities: Tattoo removal, Special Olympics and the Muscular Dystrophy Association. a o-o g-o ~) Retired. Graduate of Miller High School and attended Del Mar College. Vice-President of AARP (Greenwood chapter). (11-28-01) Therapist, Spiritual Way Addiction Counseling Service. Holds degrees in mental health, psychology and Educational Psychology (Associate in Applied Science, Bachelor of Arts and Master's of Science). Member of the MHMR Planning Advisory Committee (current chairman) and the MHMR Provider Network Advisory Committee. (11-28-01) . Director of Physical Therapy Assistant Program, Del Mar College. M.S. in Educational Technology, B.S. in Community Health, A.A.S. in Physical Therapy. Member of Texas Physical Therapy Association Board of Directors. Leadership Corpus Christi Alumni, Class 28. Recipient of Navy Achievement Award. (11-07-01) 05-21-02.WPD, p. 5 c. ELECTRICAL ADVISORY BOARD - One (1) vacancy representing the category of Registered Professional Engineer with term to 12-31-03. COMPOSIT][ON Nine (9) persons appointed by the City Council: two (2) persons with at least five years active experience as a master electrician; one (1) person with at least five years active experience as a journeyman electrician; two (2) engineers: one (1) shall be a registered professional engineer in the State of Texas, and one (1) shall have a Bachelor Degree in Electrical Engineering and a minimum of five years experience in electrical engineering; one (1) person with five years experience in the commercial building indusay; one (1)person with five years experience in the home building industry; and two (2) members, residents of Corpus Christi, not connected with the electrical industry. Five (5) members of the Board constitute a quorum, and concurring vote of not less than five (5) members is necessa~ to constitute an official action of the Board. MEMBERS TERM ORIGINAL APPTD. DATE Kyle Budd (Master Elec.), Chairperson Martin Adrian (Master Elec.), Vice-Chairperson John Homer (Not conn. to elec. industry) Robert R. Connoly (Not conn. to elec. industry) Miguel Carranco (Journeyman Elec) Ray Mims (Reg. Engineer) Ernest Salazar, Jr. (Commercial Builder) Charles E. Sebbert (Home Builder) Joe Hemandez (Electrical Eng) 12-31-03 2-17-98 12-31-02 1-09-01 12-31-02 1-09-01 12-31-02 1-09-01 12-31-02 1-12-99 12-31-03 1-08-02 12-31-03 1-08-02 12-31-02 5-16-00 12-31-02 10-14-97 * Deceased INDIVIDUALS EXPRESSING INTEREST Mark Adams Estimator/Planner, Rabalais I & E Constructors. Attended Texas Tech University. Completed IBEW Apprentice Program. Member of ABC Apprenticeship Committee, International Association of Electrical Inspectors. Has 34 years experience in the electrical field. (Journeyman Electrician) (9-13-00) Hector Estrada, Ph.D. Associate Professor of Civil Engineering, Texas A&M o Kingsville. Ph.D. and M.S. in Civil Engineering, University of Illinois at Urbana- Champaign. Member of the American Society of 05-21-02.WPD, p. 6 Orlando Chad Longoria Scott Meares Gordon Dean Self Shane Tomo, P.E. Florentino Vasquez Civil Engineers and Mechanical Engineers (ASCE and ASME). Has published on structural engineering in various peer-reviewed journals and conference proceedings. (Engineer) (5-14-02) Journeyman Electrician, Scott Electric. Completed the Electrical Apprenticeship Program at Roy Miller High School; 12 hours at Del Mar College. (Journeyman Electrician) (1-04-02) Senior Estimator, Anderson Group Construction Management. M.B.A. and B.S. in Construction Management from Louisiana State University. Community activities include: Mentor at Ray High School and the Cattle Barons. (Commercial Builder) (3-14-02) Vice-President, Industrial Electric Co. Holds a current Master's license in Corpus Christi, Victoria, Ingleside, Kingsville, Alice, Robstown, Beeville, Rockport and Sinton. Also holds a Fire Alarm Technician license. Has worked at all phases of commercial electrical work. (Master Electrician) (11-28-00) Project Engineer, Govind and Associates. B.S. in Ocean Engineering. Member of the American Society of Civil Engineers and the National Society of Professional Engineers. (Engineer) (5-08-02) Vice President/Estimator, Scott Electric. Completed a four-year electrical apprenticeship course. Currently holds a C.C. Journeyman Electrician license, Kingsville Master License, Alice Master License and Victoria Master License. (Master Electrician) (1-04-02) 05-21-02.WPD, p. 7 d. WATER SHORE ADVISORY COMMITTEE - Five (5) vacancies with two-year terms to 5-10-04, one of which represents the category of Scientist. COMPOSITION Nine members appointed by the City Council for two-year terms. The membership must include one Scientist, i.e. Marine Biologist, one Engineer, and one Environmentalist. The Chairman of the Water Shore Advisory Committee shall act as an advisory to the Park and Recreation Advisory Committee and vice versa. ORIGINAL MEMBERS TERM APPTD. D._~_~A_T~ * Alan F. Dinn, Chairman 5-10-02 5-19-98 * Steven Moody, Vice-Chairman 5-10-02 5-19-98 Terri Nicolau (Environmentalist) 5-10-03 7-11-00 Roy L. Pell 5-10-03 9-28-99 * Tom Anderson 5-10-02 11-13-01 Dr. Oscar Garcia 5-10-03 3-07-00 * Frank Beck 5-10-02 4-27-99 * Dr. JoAnnaMott (ScientisO 5-10-02 5-19-98 Dan S. Leyendecker (Engineer) 5-10-03 6-12-01 * Seeking reappointment ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT NAME NO. OF MTGS. NO. THIS TERM PRESENT % OF ATTENDANCE LAST TERM YEAR Alan Dinn 11 11 100% Steven Moody 11 7 64% Tom Anderson 7 7 100% Frank Beck 11 11 100% Dr. JoAnna Mott (Sci.) 11 10 91% OTHER INDIVIDUALS EXPRESSING INTEREST David Barganski Financial Consultant. B.A. in Business Administration from Texas A & M University- College Station. (3-23-00) William Grant Fergeson Geologist, EOG Resources, Inc. B.S. in Geological Sciences, U.T. Austin. Completed an executive management program at Rice University. 05-21-02.WPD, p. 8 William J. Green Paul Lara PhillipLara Marc A. McAllister James Robbins Susan R. Veatch 05-21-02.WPD, p. 9 Professional and community activities include: past President of the South Texas Geological Society, Gulf Coast Association of Geological Societies, South Texas Institute of the Arts and the Midget Ocean Racing Fleet. Avid boater and fisherman. Certified diver and licensed pilot. (4-10-02) Project Manager, Goldston Engineering. Received B.S. at Rice University. Member of T.S.P.E., A.S.C.E., S.A.M.E. and a former member of the City Manager's Career Development Center. (Engineer) (6.01-01) Shrimper of the Boats and Waterways. Graduate of W.B. Ray High School. (3-06-00) Seafood Industry. Graduate of W.B. Ray High School and attended Del Mar College. Independent lobbyist for shrimping and fishing laws and regulations at the Capital. (3-06-00) President, McAllister Marine Surveying Co. A.A.S. in Marine Technology. Member of the National Association of Marine Surveyors, National Fire Protection Association and Boat and Yacht Council. (6-06-01) Retired pilot and air traffic controller. Certification in Ministry, Howard Payne University; A.A.S. in Mid- management and Communications, North Lake College, Irving, Texas. Activities include: Volunteer chaplain at Bay Area Hospital, and church missions (Brazil, Costa Rica, Turkey, Viet Nam, Peru and E1 Salvador). (5-10-02) Environmental Compliance Specialist. B.S. in Chemistry and Environmental Science. Community activities include: Sea Scouts, Past Vision 2000 and Vision 2000 Water Supply Task Force member. Active sailor, fisherman and bird watcher. Received award for Army Environmental Conference in 1991. Excellent consensus builder - skilled in group decision making. (5-10-02) Marie Schad~-Wood Retired registered nurse. Activities include: Co- Founder & Secretary of Columbus Ships Preservation Fund, Six Points Optimist Club member, Vice- President of Coastal Bend Shell Club and member of St. Cyril & Methodius Church. (11-30-00) 05-21-02.WPD, p. 10 4 AGENDA MEMORANDUM RECOMMENDATION: Motion approving a supply agreement with National Meter, Inc., Lancaster, Ohio for approximately 4,625 gas meter valves ranging in size from 1" to 1 ½" in accordance with Bid Invitation No. BI-0074-02 based on low total bid for an estimated annual expenditure of $47,275. The term of the supply agreement will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by the Gas Department for FY 01-02. Purpose: The gas meter valves will be purchased and used by the Gas Department to control the flow of gas at the meter. Previous Contract: The option to extend the current contract was not exercised, due to revisions made to the specification by the department. Bid Invitations issued: Fifteen Bids Received: Three Price Analysis: Pricing has decreased approximately 2% since the last contract of May 2001. Award Basis: Low Total Bid Low bid submitted by A.Y. McDonald Mfg. Co., Dubuque, IA, for Item 3 is a total annual price difference of $180.50 less than National Meter, Inc., Lancaster, Ohio. This is the only possible award for A. Y. Mc Donald. There is no economic justification to establish and administer a separate supply agreement for this amount. When compared to the total amount of A.Y. McDonald Mfg. Co. to the total amount of National Meter, Inc., National Meter, Inc. is lower by $5,310.50. Funding: Procurement and Ge Organization Name Gas Department aeral Services Manager 520160-34130-4130 Amount $ 50,000 BID INVITATION BI -0074-02 GAS METER VALVES BUYER: ESTHER C. BARRERA ITEM DESCRIPTION 1 1" INLET X V INSULATED UNION COUPLING OUTLET 10/p/bx 2 1" INLET X 1" OUTLET 15/p/bx 3 1 1/2" INLET 1 1/7' OUTLET 7/p/bx UNIT QTY. UNIT I PRICE 4500 EACH $10.15 100 EACH 25 EACH 8.75 29.00 CITY OF CORPUS CHRISTI PURCHASING DIVISION BID TABULATION METER, INC. MUELLER CO. A. Y. McDONALD MFG. CO. R, OH DECATUR, IL DUBUQUE, IA TOTAL UNIT TOTAL UNIT TOTAL PRICE PRICE PRICE PRICE PRICE $45,675.00 $10.35 $46,575.00 $11.37 $51,165.00 875.00 9.00 900.00 8.76 876.00 725.00 22.00 550.00 21.78 c`) 544.50 TOTAL 1 $47,275.001 $48,025.001 $52,585.50 (') Note: Low bid submitted by A.Y. McDonald Mfg. Co., Dubuque, IA, for item 3 is a total annual price difference of $180.50 less than National Meter, Inc.,Lancaster, Ohio. This is the only possible award for A. Y. McDonald. There is no economic justification to establish and administer a separate supply agreement for this amount. When compared to the total amount of A.Y. McDonald Mfg. Co. to the total amount of National Meter, Inc., National Meter, Inc. is lower by $5310.50. 5 AGENDA MEMORANDUM DATE: May 21, 2002 SUBJECT: Wesley Seale Dam Operations Center Emergency Generator (Proj #8413) AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute a construction contract with N.R. Johnston Electric, Inc. for a total fee not to exceed $42,104 for the Wesley Seale Dam Operations Center Emergency Generator. ISSUE: The Operations Center at Wesley Seale Dam is in need of an alternate power source. The new generator will provide the power requirements of the newly installed security and surveillance system components for the Operations Center. FUNDING: Funds for this project ara available in the Water Department's FY 2001-2002 Capital Budget. ION: Staff recommends approval of the motion as presented. Eduardo Gara~ I~. Water Superintendent Director of Engineering Services Additional Support Material: Exhibit"A" Background Information Exhibit "B" Project Budget Exhibit"C" Bid Tab Summary Exhibit"D" Location Map C:\WlNDOWS\TEMP\WSDEmeroPower.doc AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION SUBJECT: Wesley Seale Dam Operations Center Emergency Generator (Proj #8413) PRIOR COUNCIL ACTION: January 15, 2002 -Approval of the Fiscal Year 2001-2002 Capital Improvement Budget for $152,674,800 (Ordinance No. 024730) PRIOR ADMINISTRATIVE ACTION: October 16, 2001 - Execution of a small agreement for Architectural/Engineer Consultant Services with Freese and Nichols, Inc. for a fee not to exceed Twenty- Four Thousand Nine Hundred Eighty Dollars and Zero Cents ($24,980) for design services associated with the Wesley Seale Dam Operations Center Emergency Generator. BACKGROUNDINFORMATION: Dr. Ron Waters (Freese & Nichols) advised Council during the last Wesley Seale Dam quarterly update that work relating to the City's information, control, monitoring, and security systems was required due to the size and complexity of the City's raw water supply facilities. A review of these needs led to the conclusion that an integrated monitoring and security system was needed for the City's three major water supply facilities. A construction contract was issued to Ener-Tel Services, Inc. in September 2001. The Operations Center at Wesley Seale Dam is in need of an altemate power source. The new generator will provide the power requirements of the newly installed security and surveillance system components for the Operations Center. The Operations Center requires a reliable source of alternate power to provide emergency back-up service in the instance of a power outage at the facility. PROJECT DESCRIPTION: The proposed project consists of constructing a concrete pad, fencing, general electrical work, and furnishing and installing an emergency generator and an automatic transfer switch to provide emergency power to the Wesley Seale Dam Operations Center, in accordance with the plans, specifications and contract documents. C:~WIN DOWS\TEMPIW SDBAC KGROUN D.OOC EXHIBIT "A" Page 1 of 2 BID INFORMATION: The project consists exclusively of a base bid. The City received six (6) proposals on May 8, 2002 with bids ranging from $42,104.00 to $68,819.43. The Engineer's construction estimate is $75,000.00. N.R. Johnston Electric, Inc. was the lowest responsive bidder. The City's Consultant, Freese-Nichols, Inc. and city staff, recommend that based on Iow bid and past satisfactory experience a construction contract in the amount of $42,104 be awarded to N.R. Johnston Electric, Inc. for the Wesley Seale Dam Operations Center Emergency Generator. CONTRACT TERMS: The contract specifies that the project will be completed in 160 calendar days, with completion anticipated by mid-December 2002. FUNDING: Funds for this project are available from the FY 2001 - 2002 Water Capital Improvement Budget. C:~WIN DOWS\TEMP~WS DBACKGROU N D.DOC Page 2 of 2 PRELIMINARY PROJECT BUDGET WESLEY SEALE DAM OPERATIONS CENTER EMERGENCY GENERATOR (Project No. 8413) May 21,2002 FUNDS AVAILABLE: Water Department Capital Improvement Budget ....................... FUNDS REQUIRED: Construction (N.R. Johnston Electric, Inc.) ............................... Contingencies (10%) ........................................................... Freese & Nichols Engineering, Inc .......................................... Construction Inspection ....................................................... Engineering Reimbursements ............................................... Finance Reimbursements ..................................................... Printing, Advertising, etc ...................................................... Total ................................................................................ $77,894.40 $42,104.00 4,210.40 24,980.00 2,600.00 2,000.00 1,000.00 1,000.00 $77,894.40 I EXHIBIT B Page 1 of 1 TABULATION OF BIDS Page 1 of 2 DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS TABULATED BY: Samuel F. Higgins, Freese and Nichols, Inc. DATE: May 8, 2002 TIME OF COMPLETION: 160 Calendar Days ENGINEER'S ESTIMATE: $75,000 Wesley Seale Dam Operations Center Emergency Generator Project No. 8413 N. R. Johnston Electric, Inc. P.O. Box 4746 Corpus Christi, TX 78469 Rabalais I & E Constructors P.O. Box 10366 Corpus Christi, TX 78460 Fairbairn Electric, Inc. P.O. Box 9787 Corpus Christi, TX 78469 ITEM DESCRIPTION QTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 mobilization and 1 LS $0.00 $0.00 $4,000.00 $4,000.00 $5,049.00 $5,049.00 demobilization, complete 2 Emergency generator and 1 LS $42,104.00 $42,104.00 $43,690.00 $43,690.00 $45,441.00 $45,441.00 automatic transfer switch, complete in place TOTAL BASE BID ITEMS 1-2 $42,104.00 $47,690.00 $50,490.00 EXHIBIT "C' Page 1 of 2 TABULATION OF BIDS Page 2 of 2 DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS TABULATED BY: Samuel F. Higgins, Freese and Nichols, Inc. DATE: May 8, 2002 TIME OF COMPLETION: 160 Calendar Days ENGINEER'S ESTIMATE: $75,000 Wesley Seale Dam Operations Center Emergency Generator Project No. 8413 A.G. Hill Power 1892 Trox Street Greensboro, NC 27406 BW Electric, Inc. P.O. Box 260303 Corpus Christi, TX 78426 Mapco, Inc. 427 W. Cevallos San Antonio, TX 78204 ITEM DESCRIPTION QTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Mobilization and 1 LS $5,359.55 $5,359.55 $500.00 $500.00 $2,000.00 $2,000.00 demobilization, complete 2 Emergency generator and 1 LS $48,235.88 $48,235.88 $59,360.00 $59,360.00 $66,819.43 $66,819.43 automatic transfer switch, complete in place TOTAL BASE BID ITEMS 1-2 $53,595.43 $59,860.00 $68,819.43 EXHIBIT "C" Page 2 of 2 LAKE 59 / COR~US~)k _MATHIS ~ NUECES/ ~ ~ ~ CITY PROJECT NO. 8413 EXHIBIT "O" C~ ~UNCZL EXH~BZT WESLEY S~LE D~ OPE~TZONS CENTER o~ o~ ~ EMERGENCY GENE~TOR PAGE: I Of 1 c~ OF CORPUS CHRIS~, ~ DA~: 05-16-2002 6 AGENDA MEMORANDUM DATE: May 21,2002 SUBJECT: Sanitary Sewer Trunk Main Rehabilitation (South Staples/Timbergate, Cimarron, West Point/Greenwood, Sycamore) (Project No. 7143/7182) AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute change order number 3 with Insituform Technologies, Inc. in the amount of $182,861.75 for the Sanitary Sewer Trunk Main Rehabilitation (Staples/Timbergate). ISSUE: Required point repairs would be highly disruptive and inconvenient to the public by requiring lane closures on both South Staples and Timbergate. The number, extent and time required to complete the point repairs could increase if conditions are discovered that were not apparent on the videotape of the sewer lines. The change order provides for use of pipe bursting technology, which will minimize public inconvenience. FUNDING: Funds for this project are available from FY 2000-2001 Wastewater Capital Improvement Budget. RECOMMENDATION: Staff recommends approval of the motion as presented. Wastewater Superintendent '/~l~'el'R. Escobar, P.E., ' ' Director of Engineering Services Additional Support Material: Exhibit "A" Background Information Exhibit "B" Project Budget Exhibit "C" Location Map BACKGROUNDINFORMATION SUBJECT: Sanitary Sewer Trunk Main Rehabilitation (South Cimarron, West Point/Greenwood, Sycamore) (Project No. 7143/7182) Staples/Timbergate, PRIOR COUNCIL ACTION: 1. Mamh 28, 2000 - Motion authorizing the City Manager, or his designee, to execute an engineering services agreement with HDR Engineering, Inc. for a total fee not to exceed $396,574 for the Sanitary Sewer Trunk Main Rehabilitation as follows: > West Point/Greenwood Trunk Main Rehabilitation > Staples Street Trunk Main Rehabilitation > Omaha Street Trunk Line Rehabilitation > Antelope 24-Inch Trunk Main Rehabilitation > Infiltration/Inflow Related Collection System Enhancement Program: i. South Staples from Saratoga Boulevard to Timbergate; ii. Timbergate from Staples Street to Opengate; and iii.Cimmaron Boulevard from Saratoga Boulevard to south of Lipes Boulevard ('Motion No. M2000-096). 2. March 28, 2000 - Motion authorizing the City Manager, or his designee, to execute an Agreement for Construction Materials Engineering Laboratory's Inspection and Materials Testing Services with Trinity Engineering Testing Corporation for a total fee not to exceed $21,800 for the Sanitary Sewer Trunk Main Rehabilitation as follows: > West Point/Greenwood Trunk Main Rehabilitation > Staples Street Trunk Main Rehabilitation > Omaha Street Trunk Line Rehabilitation > Antelope 24-Inch Trunk Main Rehabilitation (Motion No. M2000-097). 3. Au,qust 22, 2000 - Ordinance approving FY 2000-2001 Capital Improvement Budget (Ordinance No. 024162). December 11,2001 - Motion authorizing the execution of a construction contract with Insituform Technologies, Inc. in the amount of $1,519,839 for the sanitary trunk main rehabilitation. PRIOR ADMINISTRATIVE ACTION: 1. May 161 2000 - Executed Amendment No. 1 with HDR Engineering, Inc. for the Sanitary Sewer Trunk Main Rehabilitation in the amount of $14,412, for a total restated fee of $410,986. 2. Au.qust 7, 2001 - Executed Amendment No. 2 with HDR Engineering, Inc. for the Sanitary Sewer Trunk Main Rehabilitation in the amount of $7,110, for a total restated fee of $418,096. EXHIBIT "A" Page 1 of 3 H:'~flOME\VE L MAR~G EN/WASTEWAT~71431AGENDA BACKGROUND February 281 2002 - Award of Change Order No. 1 in the amount of $22,610.90 for for additional sanitary sewer line cleaning and televising. April 291 2002 - Award of Change Order No. 2 in the amount of $1,500.00 for televising recently installed sanitary lines on Omaha. PROJECT BACKGROUND: The City's Wastewater System has experienced a number of cave-ins, blockages, and settlements on sanitary sewer trunk mains throughout the city. Short-term emergency repairs have been completed to correct these deficiencies. This project is designed to address these problems with long-term solutions, including the rehabilitation of the critical mains in most need of repair or replacement. The project provides for repairs of twenty four (24) manholes and cured-in-place-pipe trunk main lining 14,000 linear feet of varying diameter pipe at the following locations: West Point Road from Columbia Parkway to Greenwood Drive; Greenwood Drive from Padre Island Drive to West Point Road; Staples Street from Saratoga Boulevard toTimbergate; Timbergate from Staples Street to Opengate; Cimmaron Boulevard from Saratoga Boulevard to South of Lipes Boulevard; and Sycamore from Greenwood Drive to Blackjack Street. PROJECT DESCRIPTION: The project consists of cleaning, televising and rehabilitating using cured-in-place-pipe (CIPP). The line conditions are assessed as part of the project prior to actual rehabilitation. An allowance for point repairs was included in the contract for lines that could not be rehabilitated by installation of CIPP. LINE CONDITION: All line segments have been cleaned and televised. Based on the videotapes, the Stapes segment will require four (4) point repairs, and the Timbergate segment will require one (1) point repair near the intersection with South Staples. Videotaping is an accepted method of determining the condition of a line segment, but the method does have limitations. The limitations can be manifested by the: length of the point repair increasing due to conditions not shown on the videotape; · additional deterioration that is apparent only during physical inspection; and · damage to the line caused by the point repair. REPAIR OPTIONS: Point repair uses an access pit to expose the deteriorated section-requiring repair. The exposed section is then removed and replace with a new pipe segment or CIPP. This will require a total of five separate access pits to complete the work. Pipe bursting technology uses a cutter head to break the pipe with pneumatic or hydraulic force. The broken pipe is then pushed outward as a high-density polyethylene (HDPE) pipe is pulled in behind the cutter head. This process requires only one access pit on each line segment. The access pit can be located well away from the intersection, which is not EXHIBIT "A" Page 2 of 3 H:~HOME~VELMAR~G ENIWASTEWAT~714 3~AGE N DA BACKGROUND possible with point repairs. This technology minimizes disruption to traffic, but does cost somewhat more than the point repair option. CHANGE ORDER: The change order consists of the addition of cleaning, televising and pipe bursting of twelve-inch (12") and twenty one-inch (21") sanitary trunk mains and the deletion of point repair allowances, trench safety, and other items. The change order has a net contract increase of $182,861.75, and require approximately eight (8) weeks to complete the work. Proceeding with point repairs would cost $146,215, which could increase based on the conditions encountered once the line is exposed. The point repair allowance in the contract for Staples/Timbergate was $29,900. FUNDING: Funds for this project are available from FY 2000-2001 Wastewater Capital Improvement Budget. H:'~HOME~,VE LMARIGEI~WASTEWAT~7143',AG EN DA BACKGROUND II EXHIBIT "A" Page 3 of 3 DEPARTMENT OF ENGINEERING SERVICES CHANGE ORDER SUMMARY SHEET May 5, 2002 PROJECT: Approved by: Contractor: SANITARY SEWER TRUNK MAIN REHABILITATION PROJECT NO. 7143/7182 CITY COUNCIL BY MOTION NO. on Insituform Technologies, Inc. 702 Spirit 40 Park Ddve Chesterfield, MO 63005 TOTAL CONTRACT AMOUNT .......... $1,519,839.00 25% Limit Amount .................... 379,959.75 Change Order No.1 ................... $ 22,610.90 Change Order No.2 ................... $ 1,500.00 Change Order No.3 ................... $182,861.75 TOTAL ............................. $206,972.65 13.62% < 25% f / ¸31 Change Order #3 PIPE BURSTING ACCESS PIT I PIPE BURSTING ACCESS P~ N 6543 /~Area of deteriorated Pipe · Pipe Burnt Access Pits · Manholes /~ Sewer Lines ~ Basemap 200 0 200 GO 600 800 Feet ~=-~".-~ r l M[~ro~ect ~ councilexhiblts~ exh 714-~ ~ 7182o.dw~ IH37 ~.-~--~-~ LOCATZON ~ NOT TO SCALE PROJECT NO. 7143~ 7182 EXHZBZT CZ~ ~UNCZL EXHZBZT ~ZT~Y SEEER TRUNK ~ZN REH~ZLZTATZON ~ ~ ~ ~c~ PAGE: I of 1 CI~ OF CO~PUS CHRISTI, ~ DA~: 05/16/2002 PROJECT BUDGET SANITARY SEWER TRUNK MAIN REHABILITATION South Stapleslrimbergate (Project No. 7182) Cimmaron (Project No. 7232) West Point/Greenwood (Project No. 7143) Sycamore (Project No. 7235) FUNDS AVAILABLE: FY 2000-2001 WW CIP (000000-4243-000000-150370)......... FY 2000-2001 WW CIP (000000-4500-000000-150084)......... FY 2000-2001 WW CIP (000000-4500-000000-150085) ......... FY 2000-2001 WW CIP (000000-4500-000000-150086)......... FY 2000-2001 WW CIP (000000-4500-000000-150390)......... Total............................................................................ FUNDS REQUIRED: Construction (Insituform Technologies, Inc.) ..................... ChangeOrder No. 1 ................................................... Change Order No. 2 ................................................... Change Order No. 3 ................................................... Contingencies........................................................... Consultant (HDR Engineering) ...................................... Major Projects Activity ................................................. Construction Inspection ................................................ Administrative Reimbursements ..................................... Testing (Trinity Engineering Testing Corp.) ...................... Incidentals (Printing, Advertising) ................................... Total........................................................................ May 9, 2002 West Point So. Staples Greenwood Timbergate Cimmaron Sycamore Omaha Total ...... $611,595.30 $0.00 $0.00 $0.00 $0.00 $611,595.30 $119,440.00 ...... 0.00 769,711.33 0.00 0.00 0.00 $769,711.33 $11,305.45 ...... 0.00 0.00 691,979.18 0.00 0.00 $691,979.18 $22,610.90 ...... 0.00 0.00 0.00 138,990.68 0.00 $138,990.68 ...... 0.00 0.00 0.00 0.00 1,500.00 $1,500.00 $611,595.30 $769,711.33 $691,979.18 $138,990.68 $1,500.00 $2,213,776.48 I....... $491,629.00 $319,875.00 $588,895.00 $119,440.00 $0.00 $1,519,839.00 ....... 0 $11,305.45 $11,305.45 $0.00 $0.00 $22,610.90 ....... $0.00 $0.00 $0.00 $0.00 $1,500.00 $1,500.00 ....... -$4,900.00 $259,061.75 -$33,200.00 -$38,100.00 $0.00 $182,861.75 ........ 54,062.90 0.00 92,089.50 50,044.00 0.00 $196,196.40 ... I.... 39,878.80 156,526.00 0.00 0.00 0.00 $196,404.80 ...... 7,374.44 4,798.13 8,833.43 1,791.60 0.00 $22,797.59 ........ 14,748.87 9,596.25 17,666.85 4,120.68 0.00 $46,132.65 ...... 4,916.29 3,198.75 5,888.95 1,194.40 0.00 $15,198.39 ........ 3,385.00 4,850.00 0.00 0.00 0.00 $8,235.00 ...... 500.00 500.00 500.00 500.00 0.00 $2,000.00 $611,595.30 $769,711.33 $691,979.18 $138,990.68 $1,500.00 $2,213,776.48 H:\HOMEIVELMAR\GEN\WASTEWAT\ W1 CONSTRUCTION CONTRACT\PROJECT BUDGET 7 AGENDA MEMORANDUM DATE: May 21,2002 SUBJECT: Wastewater Microwave Communication System. (Project # 7100) AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute Amendment No. 5 to an engineering services contract with Bath Engineering, Inc. in the amount of $39,650 for a total re-stated fee of $559,978 for the Wastewater Microwave Communication System. (Project # 7100) ISSUE: An additional pump control system needs to be installed at the Wooldridge Lift Station to provide better control, reliability and enhance the operation of the new SCADA system. Additional inspection services are necessary due to the complexity of this project. FUNDING: Funds for this project are available in the FY 2001-2002 Wastewater Capital Improvement Budget. RECOMMENDATION: Staff recommends approval of the motion as presented. Foster Crowell, ~ -- Wastewater Superintendent ,///A~g'el R. Escobar, P.E., ' ' · Director of Engineering Services Additional Support Material: Exhibit "A" Background Information Exhibit"B" Contract Summary Exhibit "C" Location Map AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION SUBJECT: Wastewater Microwave Communication System. (Project # 7100) PRIOR COUNCIL ACTION: 1. February 9, 1999 - Award of an engineering contract in the amount of $124,816 to Bath Engineering, Inc for Stage 1 of the Wastewater Microwave Communication System Project (M99-041). 2. December 14, 1999 - Award of an engineering contract in the amount of $370,942 to Bath Engineering, Inc. for Stage 2 services associated with the Wastewater Microwave Communication System Project (M99-041). 2. January 15, 2002 - Approval of the Fiscal Year 2001 - 2002 Capital Improvement Budget for $152,674,800. (Ordinance No. 024730) PRIOR ADMINISTRATIVE ACTION: 1. February 20, 2001 - Administrative Amendment No. 2 to an engineering services contract with Bath Engineering, Inc. for a total fee not to exceed $6,300 for a total restated fee not to exceed $502,058, for engineering services associated with the Wastewater Microwave Communication System Project. 2. December 06, 2001 - Administrative Amendment No. 3 to an engineering services contract with Bath Engineering, Inc. for a total fee not to exceed $6,300 for a total restated fee not to exceed $512,508, for engineering services associated with the Wastewater Microwave Communication System Project. 3. May 14, 2002 - Administrative Amendment No. 4 to an engineering services contract with Bath Engineering, Inc. for a total fee not to exceed $7,820 for a total restated fee not to exceed $520,328, for engineering services associated with the Wastewater Microwave Communication System Project. FUTURE COUNCIL ACTION: None anticipated PROJECT BACKGROUND: The City's Wastewater Microwave Communication System project consists of replacing the existing wastewater monitoring and alarm analog radio telemetry system with a Supervisory Control and Data Acquisition (SCADA) system utilizing new remote terminal units (RTU), new Multiple Address System (MAS), digital radio communication equipment, and two master sites with Graphic Human-Machine Interface (HMI) operator stations. The project addresses over ninety (90) city sites. Each site is unique and required documentation of site-specific equipment locations, wiring terminations, above- and below- grade obstructions. In addition to documenting existing conditions, the rehabilitative nature of this project required the consultant to develop a sequencing schedule so the existing system remains operational during construction activities. The project design requires specialized engineering expertise to address the large volume of extremely detailed work EXHIBIT "A" Page 1 of 2 involved, Approximately 30% more engineering time is necessary to complete this project as compared to a typical civil engineering project. PROJECT DESCRIPTION: This NE agreement will provide for: 1. Additional inspection services due to: Comprehensive weekly project scheduling; · Weekly construction updates and follow-ups; · Technical evaluations; · Lift station cut-over coordination between existing SCADA system and the new system; and · Visitation to 100 sites from Callalen to Padre Island throughout the construction period. 2. Design services associated with: · Removal of the existing pump control system at the Wooldridge Lift Station; · Removal of the annuciator panel; · Removal of pump magnetic clutch controls; · Installation of new clutch control system; · Evaluation of existing City owned PLC control panel; and · Coordination requirements for interfacing with the new SCADA system, A change order will be issue to the current contractor of this project, Rabalais Electric Constructors, to complete the construction phase of this amendment due to their experience with similar work at the Williams Lift Station and the need for coordination with the new SCADA system installation. CONTRACT SUMMARY/FEE: A contract summary and fee is attached as Exhibit "B". EXHIBIT "A" Page 2 of 2 CONTRACT SUMMARY AMENDMENT NO 5 CONTRACT FOR PROFESSIONAL SERVICES The City of Corpus Christi, Texas hereinafter called "City", and Bath & Associates~ Inc. hereinafter called "Engineer", agree to the following amendments to the Contract for Engineering Services for Wastewater Microwave Communication System, as authorized and amended by: Original Contract February 9, 1999 Motion No. M99-041 $124,816.00 Amendment No. 1 December 14, 1999 Motion No. M99-421 $370,942.00 Amendment No. 2 June 27, 2000 Administrative Approval $6,300.00 Amendment No. 3 May 5, 2001 Motion No. M2001-189 $10,450.00 Amendment No. 4 May 13, 2001 Administrative Approval $7,820.00 Section I. SCOPE OF SERVICES, Paragraph B., ADDITIONAL SERVICES, SHALL BE MODIFIED BY THE INCLUSION OF THE FOLLOWING PARAGRAPHS: Inspection Services i. Additional inspection services will be provided due to the comprehensive weekly project scheduling, weekly construction updates and follow-ups, technical evaluation, and lift station cut-over coordination between existing SCADA system and the new system. Project involves visitation to 100 sites from Calallen to Padre Island throughout the construction period. 10. The Wooldridge Lift Station Control System Upgrade project shall include removal of the existing pump control system, removal of annunciator panel, removal of pump magnetic clutch controls, installation of new clutch control system, evaluation of existing City owned PLC control panel, and coordination requirements for interfacing with the new SCADA system. Section II. SCHEDULE, SHALL BE MODIFIED BY THE INCLUSION OF THE FOLLOWING TABLE: 60% Due 21 Days after receipt of Notice to Proceed 90% Due 21 Days after 60% approval 100% Due 14 Days after 90% approval Final Due 14 Days after 100% approval Section III. SUMMARY OF FEES, SHALL BE MODIFIED BY THE INCLUSION OF THE FOLLOWING ADDITIONS: See Summary of Fees attached EXHIBIT "B" Page 1 of 2 WASTEWATER MICROWAVE COMMUNICATION SYSTEM AMENDMENT NO. 5 Project No. #7100 Fees for Basic Service Project 1 Preliminary Phase - Design Memorandum Design Phase Bid Phase Construction Phase Sub -Total Fees Basic Service Fees for Additional Service 1. Permitting 2. Equipment O & M Manuals 3. SCADA Software Quality Control 4. Inspection Services 5. Start-up Services 6. Training 7. Warranty 8. Tower Inspection -ONSWTP & Svc Ctr 9. Storm Water Solutions 10. Wooldridge Lift Station Upgrade Sub -Total Fees Additional Service Total of Authorized Fees May 28, 2002 Total Amend. Amend. Amend. Amend. Amend. Total Contract No.1 No.2 No.3 No.4 No.5 Invoice 124,816.00 0.00 0.00 0.00 0.00 0.00 124,816.00 0.00 203,760.00 0.00 0.00 0.00 0.00 203,760.00 0.00 5,880.00 0.00 0.00 7,820.00 0.00 13,700.00 0.00 41,820.00 0.00 0.00 0.00 0.00 41,820.00 124,816.00 251,460.00 0.00 0.00 7,820.00 0.00 384,096.00 0.00 2,270.00 0.00 0.00 0.00 0.00 2,270.00 0.00 4,660.00 0.00 0.00 0.00 0.00 4,660.00 0.00 20,400.00 0.00 0.00 0.00 0.00 20,400.00 0.00 64,132.00 0.00 0.00 0.00 16,750.00 80,882.00 0.00 5,440.00 0.00 0.00 0.00 0.00 5,440.00 0.00 5,440.00 0.00 0.00 0.00 0.00 5,440.00 0.00 17,140.00 0.00 0.00 0.00 0.00 17,140.00 0.00 0.00 6,300.00 0.00 0.00 0.00 6,300.00 0.00 0.00 0.00 10,450.00 0.00 0.00 10,450.00 0.00 0.00 0.00 0.001 0.00 22,900.00 22,900.00 0.00 119,482.00 6,300.00 10,450.00 0.00 39,650.00 175,882.00 124,816.00 370,942.00 6,300.00 10,450.001 7,820.00 39,650.001 559,978.00 TOTAL AMENDMENT NO. 5: $ 39,650 EXHIBIT "B' Page 2 of 2 ~ Mproject \ councilexhibit$ \ exh 7100.dwg S~n P~trtclo Coun~cy N NUECES BAY CORPUS CHRIS~ BAY Nueces County LAGUNA MADRE WOOLRIDGE ROAD LIFT STATION 6610 WOOLRIDGE ROAD GULF OF MEXICO PROJECT AREA BAP NOT TO SCALE PROJECT No. 7100 EXHZB~_T Wastewater Microwave Communication System WOOLRIDGE ROA~ LIFT STATION (LIFT STATION NO. 1049) CITY OF CORPUS CHRISTI, TEXAS Cr-TY COUNCr-L EXHr_Br_T DEPARTMENT OF ENGINEERING SERVICES PAGE: I of 1 DATE: 5/16/2001 8 CITY COUNCIL AGENDA MEMORANDUM DATE: May 9, 2002 AGENDA ITEM: Ordinance abandoning and vacating 5,834-square feet, of a 10-foot wide, utility easement out of Lots lA & 2, Share III, CC Hart Partition; requiring the owner, Nueces County Emergency Services District No.1 (Annaville Volunteer Fire Department), ("Owner"), to comply with the specified conditions and replat the property within 180 days at owner's expense; and declaring an emergency. ISSUE: The Nueces County Emergency Services District No.1 (Annaville Volunteer Fire Department) necessitate the closure of the utility easement in order to construct a new fire station over the existing easement. REQUIRED COUNCIL ACTION: City Charter requires Council approval to abandon and vacate any portion of an easement. IMPLEMENTATION SCHEDULE: Owner must replat the property within 180 days at their expense. RECOMMENDATION: Staff recommends approval of the ordinance as presented on an emergency basis. ,/~'gel R. Escobar, P.E. Director of Engineering Services Acting Director of Development Services Attachments: Exhibit A - Background Information Exhibit B - Ordinance Exhibit C - Site Location Map AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION PURPOSE OF CLOSUREAND BACKGROUND: Bass & Welsh Engineering, on behalf of the Nueces County Emergency Services District No.1 (Annaville Volunteer Fire Department) is requesting the abandonment and vacation of a 5,834-square foot portionl0-foot wide utility easement out of Lots lA and 2, Share III, CC Hart Partition. The easement to be abandoned and vacated is located in Zone R-1B within the city limits of Corpus Christi. The Annaville Volunteer Fire Department must close the utility easement to accommodate the future construction of a new fire station over the utility easement. The Annaville Volunteer Fire Department will be dedicating a 5-foot wide utility easement totaling 3,100-square feet along the west side of the property line. All public and franchised utilities were contacted. CPL has an existing power pole and overhead power line in the easement that may have to be relocated or abandoned and will seek reimbursement from the owner if adjustments to their facilities become necessary. There were no other objections regarding the proposed easement abandonment. There are no other existing utilities within the easement being closed. Staff recommends payment of the fair market value of $820.00 for the abandonment and vacation of a 2,734-square foot utility easement. The 2,734-square foot utility easement is the difference between the 5,834-square foot portion being proposed for abandonment and the 3,100-square foot portion being proposed for dedication. The owner has been advised of and concurs with the conditions of the easement abandonment and vacation. EXHIBIT B = I LOTS lA AND ~, SH~RE I C. C, HART PARTITIGN DEPA~THENT AN ORDINANCE ABANDONING AND VACATING A 5,834 SQUARE FOOT PORTION OF A TEN (10) FOOT WIDE UTILITY EASEMENT OUT OF LOTS lA AND 2, SHARE III, C.C. HART PARTITION; REQUIRING THE OWNER, NUECES COUNTY EMERGENCY SERVICES DISTRICT NO. 1, (ANNAVILLE VOLUNTEER FIRE DEPARTMENT) TO COMPLY WITH THE SPECIFIED CONDITIONS AND REPLAT THE PROPERTY WITHIN 180 DAYS AT OWNER'S EXPENSE; AND DECLARING AN EMERGENCY. WHEREAS, there is a 5,834 square foot portion of a 10 foot wide utility easement out of Lots lA and 2, Share III, C.C. Hart Partition, as recorded in Volume 42, Page 146, Map Records Nueces County, Texas, that the owner, Nueces County Emergency Services District No. 1, (Owner), wishes to have abandoned and vacated; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate said portion of the utility easement for all purposes, subject to the provisions below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the 5,834 square foot portion of a 10 foot wide utility easement out of Lots lA and 2, Share III, C.C. Hart Partition, as recorded in Volume 42, Page 146, Map Records Nueces County, Texas is abandoned and vacated for public use as a utility easement, subject to Owner's compliance with the following specified conditions as part of the abandonment and vacation: That payment of fair market value by Owner be made in the amount of $820.00 for the vacating and abandonment of a 2,734 square foot portion of the 10 foot wide utility easement. That Owner dedicate a 5 foot wide utility easement totaling 3,100 square feet in exchange for abandoning and vacating the remaining portion. Central Power and Light will seek reimbursement if adjustments to their facilities become necessary. The Owner must replat the portions of C.C. Hart Partition being abandoned and vacated within 180 days at Owner's expense; provided however, the City Engineer may extend the time limit for an additional 180 days if extenuating circumstances outside the Owner's control necessitate an extension. SECTION 2. That upon written request of the Mayor or five council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action ~\CITYHALL02\USERS'xLEG-DIR\JO SEPH\WORD\ORD-HartPt.doc necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the 21st day of May, 2002. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Samuel L. Neal, Jr. Mayor Legal form approved James R. Bray, Jr. City Attorney ,2002 Joseph H~Irhey Assistant City Attorney \\CITYHALL02\USERS~LEG-DIR\JO SEPI~WORD\ORD_HartPt.doc 9 AGENDA MEMORANDUM City Council Meeting - May 14, 2002 Agenda Item A: Item: Motion authorizing the City Manager or his designee to accept funding in the amount of $17,987.89 from the West Oso Independent School District E= MC2, 21st Century Grant Program to provide a structured summer recreation program for junior high students. Item B: Ordinance appropriating $17,987.89 from West Oso Independent School District E=MC2, 21st Century Grant Program in the No. 1050 Federal/State Grant Fund to provide recreational programs at West Oso Junior School; and declaring an emergency. Item C: Resolution authorizing the City Manager, or his designee, to execute an Interlocal Governmental Agreement with West Oso Junior High School for the City to provide a structured summer recreation program for junior high students, ages 12 to 16 years of age in consideration for the payment of $17,987.89 and use of West Oso Junior High School facilities Issue: In order for the City of Corpus Christi Park and Recreation Department to provide a summer recreation program for youth at West Oso Junior School, the City Council must approve and appropriate the funds. Funds for this program are provided by the E=MC2, 21st Century Grant. Grant funds for this program are used to pay for staff, contract specialist, supplies, equipment and all programs costs. No City funds will be utilized, but a motion to accept and an ordinance to appropriate the $17,987.89 funds is necessary to implement the program. Council Action Required: Action is required to accept and appropriate the E=MC2, 21st Century Grant funds and to authorize the City Manager or his designee to execute all related contracts and documents for the program. Recommendation: Staff recommends approval as presented. Fundin.q: West Oso Independent School District's E=MC2, 21st Century Grant Program Additional Suppo~ Material Background X Contract O~inance X Marco A. Cisneros, Director Park and Recreation Department BACKGROUND City Council Meeting - May 14, 2002 During the budget process three years ago, staff notified City Council that due to budget constraints we were eliminating the Middle School Program from our budget. This action was taken in part because the 21st Century Grant received by several local school districts contained funding for middle school programs. In the past, we have contracted with two middle schools within the Corpus Christi Independent School District as well as Flour Bluff Independent School District to offer middle school recreation programs through past 21st Century Grant entitled Communities and Kids Experiencing Success, (CAKES). The current 21st Century Grant is entitled Excellence = Meeting Children's Challenges, (E=MC2). Our experience has been very successful and has allowed us to expand our services into the community. The West Oso Junior High School program will allow for a structured summer recreation program; classes such as art, gymnastics, cooking, and martial arts; Friday special events such as dances, tournaments, and talent shows; parent involvement, community projects and one overnight camping trip. ORDINANCE APPROPRIATING $17,987.89 FROM WEST OSO INDEPENDENT SCHOOL DISTRICT E=MC2, 21ST CENTURY GRANT PROGRAM IN THE NO. 1050 FEDERAL/STATE GRANTS FUND TO PROVIDE A STRUCTURED SUMMER RECREATION PROGRAM FOR JUNIOR HIGH STUDENTS, AND DECLARING AN EMERGENCY. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $17,987.89 is appropriated from West Oso Independent School District E=MC2, 21st Century Grant Program, in the No. 1050 Federal/State Grants Fund to provide a structured summer recreation program for junior high students. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the day of ,2002. ATTEST: THE CITY OF CORPUS CHRISTI Annando Chapa City Secretary Samuel L. Neal, Jr. Mayor LEGAL FORM APPROVED JAMES R. BRAY, JR. CITY ATTORNEY By: ~1~ ~'~ Lisa Aguilar Assistant City Attorney 2002; A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT WITH WEST OSO INDEPENDENT SCHOOL DISTRICT TO OPERATE A SUMMER TEEN RECREATION PROGRAM. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager, or designee, is authorized to execute an Interlocal Cooperation Agreement with West Oso Independent School District to operate a sum- mer teen recreation program. A copy of the agreement is on file with the City Secretary. INTRODUCED AND PASSED by the City Council of the City of Corpus Christi, Texas, on the day of ,2002. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Samuel L. Neal, Jr., Mayor APPROVED AS TO LEGAL FORM on the ~day of Eli~abe~ R. Hundle~y, A~sistant'City A~ney ,2002. INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND WEST OSO INDEPENDENT SCHOOL DISTRICT This agreement ("Agreement") is entered into between the City of Corpus Christi, a Texas home rule municipal corporation ("City"), and West Oso Independent School District ("District") for purposes of the Interlocal Cooperation Act, Texas Gov- ernment Code, Chapter 791, as amended, to achieve efficiency in meeting intergovern- mental responsibilities. WHEREAS, the City is sponsoring a summer recreational program for youth from June 3, 2002, to July 26, 2002, specifically including teen recreation programs; WHEREAS, the District requests that the City provide a summer teen recreation- al program at West Oso Junior High School ("West Oso"); and WHEREAS, the District agrees to provide use of West Oso facilities and to make payment to the City to facilitate the operation of a summer teen recreational program at West Oso. NOW, THEREFORE, the City and District, in consideration of the mutual cove- nants contained herein, agree as follows: Section 1. Scope. The City will operate a summer teen recreation program ("Teen Program") for the benefit of the District. Section 2. Term. This Agreement begins June 3, 2002, and ends July 26, 2002. Section 3. Consideration. The District shall pay the City $17,987.89 within 30 days of receipt of the City's invoice. The District shall remit payment from West Oso's 21sT Century Grant funds. Section 4. Billinq. The City will send the District an invoice, for services rendered, within 5 days following the termination of this Agreement. Section 5. Facilities and Maintenance. The District shall provide its facilities, in- cluding utilities, at its sole expense, as a part of the consideration. The District agrees to maintain its facilities by providing all maintenance and janitorial services, at its own expense, during the term of this Agreement. Section 6. Transportation. The District shall provide bus transportation to and from various activities attended by Teen Program participants during the term of this Agreement as a part of the consideration. The District will maintain their buses at its bus maintenance facility during the term of this Agreement as a part of the consideration. The District, at its sole expense, will provide the fuel to run the buses, all maintenance costs, and fleet liability insurance. The District's bus drivers will continue to be District employees for the term of this Agreement and, therefore, subject to the District's policies and regulations. Their salaries and benefits, if any, will continue to be paid by the District during the term of this Agreement. Section 7. Recreation Workers. The recreation workers, providing services for the Teen Program, will be City employees or agents for the term of this Agreement and, therefore, subject to the City's policies and regulations. Their salaries and benefits, if any, will be paid out of the District's consideration payment, as set out above in Sec- tion 3. Section 8. Governmental Service. This Agreement is between the City and the Dis- trict for the purpose of providing a summer teen recreational program for the District and is not for the benefit of any third party or individual. Section 9. Current Revenue. All money spent for the Teen Program through this Agreement must be spent out of currently available revenue of the City and the District. Section '10. Entirety Clause. This Agreement expresses the entire agreement be- tween the parties. Any modification, amendment, or addition to this Agreement is not binding upon the parties unless in writing and signed by persons authorized to make such agreements on behalf of each respective party. EXECUTED IN DUPLICATE on the day of ,2002. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary George K. Noe, Deputy City Manager JAMES R. BRAY, JR., CITY ATTORNEY By: E~-z~ R. Hundley, As/sistant City ~__~ey ,2002. STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on the __ day of ,2002, by George K. Noe, Deputy City Manager, of the City of Corpus Christi, Texas, a home rule municipal corporation, on behalf of said corporation. Notary Public, State of Texas My Commission Expires: WEST OSO INDEPENDENT SCHOOL DISTRICT By: l}r STATE OF TEXAS ~ COUNTY OF NUECES ~ This instrument was acknowledged before me on the /0"f~ay of ~7~/ ,2002, by ~,/~b ~ /~'- ~/~/~,'// , an authorized representative of West Oso Independent School District, acting on behalf of the organization. N~-Public, Printed Name ~ /~,, My Commission Expires: ~Z ~ NOTARY PUBLIC State Of Texas ~:~;/Co~m. Exp. 02-28-2006J 10 CITY COUNCIL AGENDA MEMORANDUM City Council Meeting - May 21, 2002 AGENDA ITEM: Resolution authorizing the issuance of a permit to Clear Channel Radio for the Outdoor Music Festival, "C Sculptures" on the Gulf Beach at Newport Pass County Park in the Corpus Christi City Limits. ISSUE: Any public Outdoor Music Festival that is held in the City of Corpus Christi must comply with the Outdoor Music Festival Ordinance. C - Sculptures is an outdoor event that includes sand sculpting competition, contests and musical events to be held at Newport Pass County Park, Nueces County Property, within the City's limits, on June 8, 2002, from 8 a.m. to 8 p.m. Estimated attendance is 10,000 each hour and about 100,000 per day. The event has a long history, 25 years, on the Island outside of the City Limits. It is a one-day event and has a contract with Nueces County to do the event. This event now falls under the City of Corpus Christi's Outdoor Music Festival Ordinance due to the City's most recent annexation of the County Parks. The event will now occur inside the Corpus Christi City Limits. The Outdoor Music Festival Ordinance requires a Public Hearing for each requested permit. Due to the time constraints, staff asks that the City Council consider the waiving of the 60 day time line, as required in the ordinance (Section 33-93(a)), as a part of the permit. The Public Hearing for this event was held on May 6th, and no one expressed any opposition to the event. The other portions of the ordinance that staff asks to be waived are related to the various information items that were not included in the application related to sponsor financial records (Section 33-89 (d)(1)), performance schedules (Section 33-89 (d)(2)) and sponsor criminal histories (Section 33-89 (d)(4)). Clear Channel Radio did address the advertising information (Section 33-89 (d)(3)) in their application. REQUIRED COUNCIL ACTION: The City Council must approve all permits for public Outdoor Music Festivals. PREVIOUS COUNCIL ACTION: None RECOMMENDATION: Staff recommends permit approval as presented. Marco A. Cisneros, Director Park & Recreation Department A RESOLUTION AUTHORIZING THE ISSUANCE OF A PERMIT TO CLEAR CHANNEL RADIO FOR THE OUTDOOR MUSIC FESTIVAL, "C SCULPTURES," ON THE GULF BEACH AT NEWPORT PASS COUNTY PARK IN THE CORPUS CHRISTI CITY LIMITS. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION I. The City Council hereby authorizes the issuance of a permit to Clear Channel Radio for the Outdoor Music Festival, "C Sculptures," on the Gulf Beach at Newport Pass Park in the Corpus Christi City Limits. SECTION 2. The City Council hereby varies the requirements of Sections 33-89(d)(1), (d)(2); and (d)(4) and with Section 33-93(a) of the Code of Ordinances, the variance of which is authorized by Section 33-98 of the Code, and finds that Clear Channel Radio is in compliance with the provisions regarding application for an outdoor music festival permit. INTRODUCED AND PASSED by the City Council of the City of Corpus Christi, Texas, on the . day of ,2002. ATTEST: ClTY OFCORPUS CHRISTI Armando Chapa, City Secretary Samuel L. Neal, Jr., Mayor APPROVED AS TO LEGAL FORM on the .~,~_~'day of ~,. 2002. JAMES R. BRAY JR., CITY ATTORNEY By: ~ 11 CITY COUNCIL AGENDA MEMORANDUM May 21, 2002 AGENDA ITEM: A. An Ordinance appropriating $462,181 from increased revenues of the Hotel Occupancy Tax Fund and transferring the full amount to the General Fund to be used for Beach Maintenance and Safety of newly annexed property on Mustang Island; amending Ordinance Number 024528 which adopted the FY2001-02 budget by increasing both revenues and appropriations by $462,181 in the Hotel Occupancy Tax Fund; and declaring an emergency. B. An Ordinance appropriating $525,671 from increased revenues of the General Fund to be used for Beach Maintenance and Safety of newly annexed property on Mustang Island; amending Ordinance Number 024528 which adopted the FY2001-02 budget by increasing both revenues and appropriations by $525,671 in the General Fund; and declaring an emergency. ISSUE: On December 11, 2001, the City Council passed Ordinance Number 024697, which annexed Mustang Island Area F, Tracts 3A, 3B, 4 and 5 providing for a service plan for the annexed area of land. For the remainder of FY2001-02, the City must amend the existing budget to incorporate the additional costs to be expended on beach maintenance and safety of the acquired areas. FUNDING SOURCE: Funding for beach maintenance and safety for the remainder of FY2001-02 will be derived from revenues generated from hotel occupancy taxes, sales tax, franchise and related fees and State Reimbursements. In the future, revenues generated from ad valorem taxes will also fund these type of expenditures. REQUIRED COUNCIL ACTION: Approval of appropriation ordinances necessary to fund the Beach Maintenance and Safety programs for newly annexed property on Mustang Island. RECOMMENDATION: Approval of ordinances as presented. Ma~k I_'. McDan~ ~ Director of Management and Budget BACKGROUNDINFORMATION The City of Corpus Christi is providing services to the newly annexed areas on Mustang Island. Funding for these services, in the current fiscal year, will be derived from revenues generated from hotel occupancy taxes, sales tax, franchise and related fees, and State reimbursements. Application will be made to the State for the 10% beach maintenance reimbursements, however, no revenues are projected at this time. Ad valorem, or property tax revenue, will not be collected on properties in this area until next fiscal year. Projected revenues and costs for the remainder of FY2001-02 are as follows: FY2001~02 Projections General Fund Hotel Tax Fund Revenues Sales Tax $ 9,712 Hotel Occupancy Tax 0 Franchise & Related Fees $ 23,778 Beach Maint & Safety Reimbursement (1) $462,181 Beach Parking Permits $ 30,000 $525.671 Costs Life Guarding/First Response-Fire $144,183 Beach Safety/Patrol-Police $ 68,602 Beach Maintenance(Signage)-Streets $ 33,490 Beach Maintenance-Parks & Recreation $249,396 Beach Parking Permits $ 30,000 Beach Maintenance & Safety Support (1) $ 0 $525.671 $ 0 $462,181 $ o $ 0 $ 0 $462,181 $ 0 $ o $ 0 $ o $ 0 $462,181 $462.181 notes: (I) from Hotel Tax Fund ORDINANCE APPROPRIATING $462,181 FROM INCREASED REVENUES OF THE HOTEL OCCUPANCY TAX FUND AND TRANSFERRING THE FULL AMOUNT TO THE GENERAL FUND TO BE USED FOR BEACH MAINTENANCE AND SAFETY OF NEWLY ANNEXED PROPERTY ON MUSTANG ISLAND; AMENDING ORDINANCE NO. 024528 WHICH ADOPTED THE FY2001-02 BUDGET BY INCREASING BOTH REVENUES AND APPROPRIATIONS BY $462,181 IN THE HOTEL OCCUPANCY TAX FUND; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $462,181 is appropriated from increased revenues of the Hotel Occupancy Tax Fund and transferring the full amount to the General Fund to be used for beach maintenance and safety of newly annexed property on Mustang Island. SECTION 2. That Ordinance No. 024528 which adopted the FY2001-02 Budget is amended to increase both revenues and appropriations by $462,181 in the Hotel Occupancy Tax Fund. SECTION 3. That upon written request of the Mayor or five Council members, copy attached, the City Council (I) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter role that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the . day of ,2002. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Samuel L. Neal, Jr. Mayor LEGAL FORM APPROVED JAMES R. BRAY, JR CITY ATTORNEY ,2002; By: Lisa Aguilar Assistant City Attorney ORDINANCE APPROPRIATING $525,671 FROM INCREASED REVENUES OF THE GENERAL FUND TO BE USED FOR BEACH MAINTENANCE AND SAFETY OF NEWLY ANNEXED PROPERTY ON MUSTANG ISLAND; AMENDING ORDINANCE NO. 024528 WHICH ADOPTED THE FY2001-02 BUDGET BY INCREASING BOTH REVENUES AND APPROPRIATIONS BY $525,671 IN THE GENERAL FUND; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $525,671 is appropriated from increased revenues of the General Fund to be used for beach maintenance and safety of newly annexed property on Mustang Island. SECTION 2. That Ordinm~ce No. 024528 which adopted the FY2001-02 Budget is amended to increase both revenues and appropriations by $525,671 in the Genera! Fund. SECTION 3. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter role that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the __ day of ,2002. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Samuel L. Neal, Jr. Mayor LEGAL FORM APPROVED JAMES R. BRAY, JR. CITY ATTORNEY ,2002; By: Lisa Aguilar Assistant City Attorney 12 CITY COUNCIL AGENDA MEMORANDUM May 17, 2002 AGENDA ITEM: a. Motion authorizing the City Manager or his designee to execute a contract with Collier, Johnson & Woods to perform the financial and compliance audit requirements for fiscal years ending July 31, 2002 and July 31, 2003, in the estimated amount of $123,000 for fiscal year 2001-02, and an estimated amount of $130,000 for fiscal year 2002-03, subject to the availability of funds. Motion authorizing the City Manager or his designee to contract as needed with Collier, Johnson & Woods for additional assistance in the CAFR preparation for implementation of the new GASB Statement No. 34 f'mancial reporting model at their standard hourly rate, at an estimated amount of $10,000, subject to the availability of funds. ISSUE: The City Charter, Article II Section 27, requires an annual audit as follows: "The council shall provide for an independent annual audit for ail City accounts and may provide for such more frequent audits as it deems necessary." FUNDING SOURCE: The FY2001-02 Budget contains funding for start up costs of the audit and funds will be budgeted for the balance of the audit contract in the FY2002-03 Budget. REQUIRED COUNCIL ACTION: Approval of motions to award the contract. CONCLUSION AND RECOMMENDATION: Staff recommends that the City Council award a contract to Collier, Johnson, & Woods to perform the financial and compliance audit requirements for fiscal years ending July 3 I, 2002 and July 31, 2003, in the estimated amount of $123,000 for fiscal year 2001-02, and an amount subject to the availability of funds for fiscal year 2002-03 and to contract as needed with Collier, Johnson & Woods for additional assistance in the CAFR preparation for implementation of the new GASB Statement No. 34 financial reporting model at their standard hourly rate, subject to the availability of funds. Lee Ann Dumbauld Attachments: Background Information Director of Financial Services Contract Summary Engagement Letter for fiscal year 2001-02 BACKGROUNDINFORMATION BACKGROUND INFORMATION In October 2000, staff recommended to the Adminislrative Analysis Committee Meeting that the City go out for proposals for a new audit firm. A Request for Proposal for Professional Auditing Services was issued. On February 12, 2001, the Administrative Analysis Committee interviewed the three frans, and voted to recommend the firm of Collier, Johnson & Woods for a period of three years, with each year subject to City Council approval. The financial and compliance audit for the fiscal year ending July 31, 2002, is the second year of this contract. The fee estimate from Collier, Johnson & Woods is increased by $15,000 from last year's contract due to the additional audit procedures that will be required with the implementation of GASB (Governmental Accounting Standards Board) Statement No. 34. The additional fee is not for implementation issues, which will be billed at their standard hourly rate. CONTRACT SUMMARY The contract is with Collier, Johnson & Woods to audit the general purpose financial statements of the City of Corpus Christi, audit the Corpus Christi Crime Control and Prevention District, audit the Business and Job Development Corporation, and perform a compliance audit for the year ending July 31, 2002. The agreement contains the following: Audit the City's general purpose financial statements as of and for the year ending July 31, 2002 and issue an opinion. Perform the financial and compliance audit requirements (Single Audit) for the year ending July 31, 2002. The audit requirements include following the standards for fmancial and compliance audits contained in Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office: the Single Audit Act Amendments of 1996; and OMB Circular A-133, "Audits of State and Local Oovemments." Audit the Corpus Christi Crime Control and Prevention District for the year ended July 31, 2002. 4. Audit the Business and Job Development Corporation for the year ended July 31, 2002. Issue a management letter covering fmdmgs and recommendations that were found during the audit. 6. Fee - Estimated not to exceed $123,000. With the implementation of the new GASB No. 34 financial reporting model, the City may need assistance in resolving implementation issues. Additionally, with the new personnel in the Finance Department, additional assistance from the auditors may be needed in the CAFR preparation. Fees for such assistance would be billed at Collier, Johnson, and Woods' standard hourly rate. May 15, 2002 Collier. Johnson &Woods Lee Dumbald, Director of Finance City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469-9277 Dear Mrs. Dumbald: Enclosed please find two copies of the engagement letter in the relation to the audit of the general purpose financial statements for the City of Corpus Christi as of and for the year ended July 31, 2002. If approved by the City Council, please have Mr. Garcia and Mr. Chapa sign, date and retum to us in the envelope provided. The copy is for your files. The fee estimate was increased by $15,000 due to the addition audit procedures that will be required with the implementation of GASB 34. The additional fee is not for implementation issues that will be billed at our standard hourly rates. This is going to be a difficult year with the implementation of GASB 34 and the new personnel in the finance department We will be available to assist and are ready to get started as soon as possible. Very truly yours, COLLIER, JOHNSON & WOODS A Professional Corporation March 18, 2002 Collier: Johnson &Woods David R. Garcia, City Manager City of Corpus Christi P. O. Box 9277 Corpus Christi, Texas 78469-9277 Dear Mr. Garcia: We are pleased to confirm our understanding of the services we are to provide for the City of Corpus Christi (City) for the year ended July 31,2002. We will audit the general purpose financial statements of the City of Corpus Christi as of and for the year ended July 31, 2002. We understand that the financial statements will be presented in accordance with the financial reporting model described in GASB Statement No. 34. Also, the document you submit to us will include the following additional information that will be subjected to the auditingproceduresapplied in our audit of the general purpose financial statements: 1. Management's Discussion and Analysis. 2. Budgetary Comparison Schedules. 3. Infrastructure Information. 4. Schedule of Expenditares of Federal Awards. The document will also include statistical information that will not be subject to the auditing procedures applied in our audit of the general purpose financial statements, and for which our auditor's report will disclaim an opinion. Audit Objectives The objective of our audit is the expression of an opinion as to whether your general purpose financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the general purpose financial statements taken as a whole. The objective also includes reporting on: David R. Garcia, City Manager March 18, 2002 Page -2- Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The reports on internal control and compliance will each include a statement that the report is intended for the information and use of the Honorable Mayor and Members of the City Council, management, federal awarding agencies, and if applicable, pass-through entities. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-133, and will include tests of accounting records, a determination of major programs in accordance with Circular A-133, and other procedures we consider necessary to enable us to express such an opinion and to render the required reports. If our opinion on the general purpose financial statements or the Single Audit compliance opinion is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining internal control and for compliance with the provisions of contracts, agreements, and grants. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, David R. Garcia, City Manager March 1 g, 2002 Page ~3- and that federal award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Managemem is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, including the schedule of expenditures of federal awards, but the responsibility for the financial statements remains with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting and compliance, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatemems aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Additionally, as required by OMB Circular A-133, it is management's responsibility to follow up and take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. Audit Procedures--General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. As required by the Single Audit Act Amendments of 1996 and OMB Circular A-133, our audit will include test of transactions related to major federal award programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements (whether caused by errors or fraud), illegal acts, or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements, immaterial illegal acts, or illegal acts that do not have a direct effect on the financial statements or major programs. However, we will inform yon of any material errors and any fraud that comes to our attention. We will also inform you of any other illegal acts that come to our attention, unless clearly inconsequential. We will include such David R. Garcia, City Manager March 18, 2002 Page -4- matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confu'mation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures--Internal Controls In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements and on its compliance with requirements applicable to major programs. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the general purpose financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliancematters that have a direct and material effect on the general purpose financial statements. Tests of controls relative to the general purpose financial statements are required only if control risk is assessed below the maximum level. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards As required by OMB Circular A-133, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements, applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133. David R. Garcia, City Manager March 18, 2002 Page -5- An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, we will inform the Honorable Mayor and Members of the City Council and City management of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attentionrelating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A- 133. Audit Procedures--Compliance Our audit will be conducted in accordance with the standards referred to in the section titled Audit Objectives. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we will perform tests of the City's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB Circular A-133 Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the City's major programs. The purpose of those procedures will be to express an opinion on the City's compliance with requirements applicable to major programs in our report on compliance issued pursuant to OMB Circular A-133. Audit Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any invoices selected by us for testing. At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection form that summarizes our audit findings. David R. Garcia, City Manager March 18, 2002 Page -6- We will provide copies of our reports to the City; however, it is management's responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and a corrective action plan) along with the Data Collection Form to the designated federal clearinghouse and, if appropriate, to pass-through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audits. At the conclusion of the engagement, we will provide information to management as to where the reporting packages should be submitted and the number to submit. The workpapers for this engagement are the property of Collier, Johnson & Woods P.C. and constitute confidential information. However, we may be requested to make certain workpapers available too cognizant or grantor agencies pursuant to authority given to them by law or regulation. If requested, access to such workpapers will be provided under the supervision of Collier, Johnson & Woods P.C. personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to cognizant or grantor agencies. The cognizant or grantor agencies may intend, or decide; to distribute the photocopies or information contained therein to others, including other governmental agencies. The workpapers for this engagement will be retained for a minimum of three years after the date the auditors' report is issued or for any additional period requested by the cognizant agency, oversight agency for audit, or pass-through entity. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the parties contesting the audit finding for guidance prior to destroying the workpapers. We expect to begin our audit in April and to issue our report no later than 120 days after year end. Our fees for these services will be based on the actual time spent at our standard hourly rates, plus travel and other out-of-pocket costs such as report production, typing, postage, etc. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. David R. Garcia, City Manager March 18, 2002 Page -7- We estimate that our fee for the engagement will be as follows: Financial Audit of the City 90,000 Compliance Audit 27,000 Crime Control District 3,000 Business and Job Development Corporation 3,000 123,000 We do not anticipate the fee to exceed $123,000 for the services, unless unforeseen cimumstances arise. Such circumstances will be discussed when, and if, encountered. Our invoices for these fees will be rendered as work progresses and are payable on presentation. The City is obligated to pay such fees under this agreement as may lawfully be made from funds budgeted and appropriated for that purpose during the current fiscal year. Should the City fail to budget and appropriate funds for the audit in the subsequent fiscal year this agreement shall be terminated. During the year of implementation of the new GASB 34 financial reporting model the City may need assistance in resolving implementation issues. Furthermore, with the new personnel in the finance department additional assistance may be need in the CAFR preparation. Fees for such assistance would be billed at our standard hourly rates. We appreciate the opportunity to be of service to the City of Corpus Christ and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, COLLIER, JOHNSON & WOODS A Professional Corporation ~pher~ David R. Garcia, City Manager March 1 g, 2002 Page -8- RESPONSE: This letter correctly sets forth the understanding of the City of Corpus Christi. David R. Garcia, City Manager Date: Armando Chapa, City Secretary Date: Motion No.: 13 CITY COUNCIL AGENDA MEMORANDUM Date: May 16, 2002 AGENDA ITEM: Motion authorizing the City Manager to execute a legal services contract with Michael Terry, attorney at law, to serve as co-counsel with Fulbright & Jaworski, LLP, to represent the City in its negotiations with Leon Loeb on the South Wharf Project and with Landry's Restaurants Incorporated on the City's Marina Operations and Development Project, subject to certification of funds. ISSUE: The City Council previously approved hiring Fulbright & Jaworski to assist negotiations of these marina development projects which are of great importance to the City. These services will be enhanced by the addition ora local attorney who will provide greater local perspective. Michael Terry is a highly respected local attorney who has represented the City extremely well on other significant matters. RECOMMENDATION: We recommend adoption of the above motion. /~)~'~d Rf~Garcia, City Manager 14 CITY COUNCIL AGENDA MEMORANDUM May 21, 2002 A. APPROPRIATING $60,000 FROM THE REFINERY TERMINAL FIRE COMPANY IN THE NO. 1020 GENERAL FUND FOR THE PURCHASE OF AN INFORMATION AND VIDEO DISPLAYING SYSTEM FOR THE CITY'S EMERGENCY OPERATIONS CENTER; AND DECLARING AN EMERGENCY ISSUE: The City has received a contribution from the Refinery Terminal Fire Company to purchase information display systems for the Emergency Operations Center. The contribution will fund $60,000 of the Information Display Systems already accepted under emergency measures by the City Manager for a total cost of $100,545. REQUIRED COUNCIL ACTION: Approving the appropriation of 60,000 contribution. PREVIOUS COUNCIL ACTION: None FUNDING: The contribution will provide $60,000 in the Contribution and Donations Fund No. 1020 11950 340000 with $40,545 coming from the 1020 11950 530240 Emergency Management Radio Maintenance for the total cost of 100,545. CONCLUSION AND contribution and appropriate the funds. RECOMMENDATION: Staff recommends accepting the ORDINANCE APPROPRIATING $60,000 FROM THE REFINERY TERMINAL FIRE COMPANY IN THE NO. 1020 GENERAL FUND FOR THE PURCHASE OF AN INFORMATION AND VIDEO DISPLAYING SYSTEM FOR THE CITY'S EMERGENCY OPERATIONS CENTER; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $60,000 from the Refinery Terminal Fire Company is appropriated in the No. 1020 General Fund for the purchase of an information and video displaying system for the City's Emergency Operations Center. SECTION 2. That upon written request of the Mayor or five Council member¢, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure on this the __ day of ,2002. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: This 15th day of May, 2002: James R. Bray, Jr. City Attorney By: R. Jay Reining First Assistant City Attorney Samuel L. Neal, Jr. Mayor R22907A1 361/882-6253 REFINERY TERMINAL FIRE COMPANY P.O. BOX 4162 · 78469-4162 4802 UP RIVER ROAD · 78407-1722 CORPUS CHRISTI, TEXAS May 6, 2002 Mr. David Garcia City Manager City of Corpus Christi P. O. Box 9277 Corpus Chdsti, TX 78469-9277 Dear David: The LEPC Blueprint project managed by the RTFC donates $60,000 to the City of Corpus Christi for use by the Office of Emergency Management. The funds are to be used solely for improvements to the relocated Emergency Operations Center at the Frost Bank building on Port and Leopard. The items to be purchased by the City are for audiovisual equipment and other supporting items. Sincerely, R. J. Allen Project Manager Memo To: David R. Garcia, City Manage~/~j~ From: Pete Alvarez Jr., Police Chie ~f(.~,~~ CC: Juan Ortiz, Emergency Management Date: 05/02/2002 Re: Emergency Purchase of Information Display Systems in the Emergency Operation Center ~fhe latest construction completion date for the new Emergency Operation Center (EOC) in the Frostbank Building is June 15, 2002. This includes delivery of furniture, telephone equipment, carpeting, and air conditioning. It is of great importance to complete the audio and video display systems to ensure the center will be operational to the desired level during the 2002 Hurricane Season. In order to meet the June 15, 2002 completion date, the Police Department is requesting the emergency purchase of Phase 1 design and installation of the information display systems in the new EOC in the amount of $100,545 from Ken Bridges Audio Video, Inc. This request is based on the following information: · The installation of the information display system will take approximately six weeks and will make the EOC operational by June 15u'. · 7he next available council meeting is May 14, 2002 and would change the completion date to July 1st. · The transition from the current to the new EOC needs to be closer to June 1 to lower the risk nfa transition while responding to a hurricane. A majority of the personnel assigned to the EOC are new members. They will require as much time as possible to be ready in the event of EOC activation. The training will include familiarity with the new facility. The current EOC is located in the City Hall Basement and has been a marg/nal facility at best. The lessons learned from the Hurricane Bret identify several shortfalls in the use of the current center which lowers the readiness level of our community. The current EOC limits the coordination, sharing of information and effectiveness of emergency response personnel responsible with the health and welfare of the citizens of Corpus Christi. These findings as well as other findings have resulted in the need to relocate the EOC to the Frost Bank Building. The EOC requires the integration of several distinct systems, which need to operate as one. The center will use information originating within city systems and outside agencies by sharing infom~ation fi.om several computer workstations. The EOC will use information from the METROCOM 911 CAD, the automatic vehicle locator, and the traffic management systems in the Street Department and TX-DOT. In addition, the center will use weather stations, satellite sources, and air monitoring facilities and local media signals. Four display screens will display the information fi.om all sources and at times subdivide the screens into smaller areas. The center will use RGB, video, and audio switching equipment and a wireless color touch screen panel to control all equipment in the center. It is imperative that the same contractor installs all the equipment to integrate the systems accordingly. Due to the urgency in the new EOC facility and by the desire to make the new EOC operational for the 2002 Hurricane Season as soon as possible, it is necessary to conm~ence work immediately. Funding - Contribution from the LEPC Blueprint in the amount of $60,000. V/ Funding Source: Emergency Management Operating Budget in the amount of $40,545. v// Certification o£Funds-)~ Mark McDaniels Budget Director D~avid R. Garcia City Manager Disapprove Date Date 15 CITY COUNCIL AGENDA MEMORANDUM City Council Meeting April 23, 2002 AGENDA ITEM: Ordinance authorizing the City Manager, or his designee, to execute a five- year lease with Santa Fe Soccer League, a non-profit organization, for the use of City property, to wit: North Pope Park and South Pope Park, for its soccer program and in consideration of Santa Fe Soccer League maintaining the premises and improvements; providing for severance; and providing for publication. ISSUE: The previous Use Permit for the premises expired on December 16, 1998 and the Santa Fe Soccer League has asked for a five-year lease on the premises. The league is in good standing with the Park and Recreation Department. REQUIRED COUNCIL ACTION: The City Council must approve all multi-year leases. BOARD/COMMITTEE REVIEW: The Park and Recreation Advisory Board approved the previous Use Permit of the area and was informed of the intent to extend the term for the additional premises. RECOMMENDATION: Staff recommends that the ten-year lease with the Padre Soccer League be amended to include the additional premises and that action be approved. Marco A. Cisneros, Director of Park and Recreation ADDITIONAL SUPPORT MATERIAL Background Information X Lease Summary X Ordinance X Map X AGENDA MEMORANDUM BACKGROUNDINFORMATION BACKGROUND: The Santa Fe Soccer League has operated a youth soccer league at the soccer fields in North and South Pope Parks for more than 7 years. The previous Use Permit expired on December 16, 1998. The league would like a five-year lease on the parks. The league has had more than 500 youth participating in the soccer program in the fall and spring seasons. AGENDA MEMORANDUM LEASE SUMMARY 1. The Santa Fe Soccer League has been using the fields at North and South Pope Parks for youth soccer programs. The league has been operating under one-year use permits since 1994. 2. The lease will be for a five-year term. 3. Lessee agrees to operate a youth soccer program and maintain the premises. 4. Lessee agrees to secure and maintain, at lessee's expense during the term of the Agreement, a commercial general liability insurance policy. 5. Lessee agrees to pay for all utilities used by it or for any activity sponsored by the lessee. 6. Either City or lessee may terminate the lease without cause by giving 30 days written notice to the non-terminating party. AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HiS DESIGNEE, TO EXE- CUTE A FIVE-YEAR LEASE WITH SANTA FE SOCCER LEAGUE, A NON-PROFIT ORGANIZATION, FOR THE USE OF CITY PROPERTY, TO WIT: NORTH POPE PARK AND SOUTH POPE PARK, FOR ITS SOCCER PROGRAM AND IN CONSIDERATION OF SANTA FE SOC- CER LEAGUE MAINTAINING THE PREMISES AND IMPROVEMENTS; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager, or his designee, is authorized to execute a five-year lease with Santa Fe Soccer League, a non-profit organization, for the use of City prop- erty, to wit: North Pope Park and South Pope Park, for its soccer program and in con- sideration of Santa Fe Soccer League maintaining the premises and improvements. A copy of the lease, including exhibits that are attached to and incorporated into the lease, is on file with the City Secretary. SECTION 2. If, for any reason, any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of the City Council that every section, paragraph, subdivision, phrase, word and provision hereof shall be given full force and effect for its purpose. SECTION 3. Publication will be made in the official publication of the City of Corpus Christi as required by the City Charier of the City of Corpus Christi. SANTA FE SOCCER LEAGUE LEASE ~ EXHIBIT A Playg~nd HAMLIN MIDDLE SCHOOL WILSON ELEMENTARY SCHOOL NORTH & SOl, TH POPE PARK LEGEND 16 CITY COUNCIL AGENDA MEMORANDUM City Council Meeting May 21, 2002 AGENDA ITEM: Motion authorizing initiation of contract negotiations with artist, Michael Manjarris for the complete development and installation of a sculpture garden to include six artists: Luis Jimenez, James Suds, Charmaine Locke, John Buck, Mel Chin and Michael Manjarris for the Convention Center/Arena Project in the amount of $500,000. ISSUE: The Arts and Cultural Commission has made a recommendation to the City Council to enter into a contract with Michael Manjards for the purpose of constructing and installing artwork for the Convention Center/Arena Project. At the Joint City Council/Arts and Cultural Commission meeting on August 28, the City Council directed the Arts and Cultural Commission to prepare a Request for Proposal for art for the Convention Center/Arena Project. A motion to authorize contract negotiations is necessary to give City staff the authority to proceed. The final contract will be brought back to City Council for approval. BACKGROUND: The artist, members of the Architectural team, Engineering staff, Convention Center Staff, Arts and Cultural Commissioners and Park & Recreation staff will meet to determine the best placement of artwork which would include grounds around and inside the Convention Center/Arena. In addition, the contract negotiations with the artist will also include timeline, installation, payment to artist and all proposed artwork. FUNDING: The funding source for the project is the Convention Center project and the Arena Project. The Public Art Ordinance #19663 (passed March, 1987) authorizes an arts allocation of 1 ¼% of funds appropriated for specific City capital construction projects greater that $50,000, such as buildings, parking facilities, parks, arterial streets and sidewalks. Both new construction and remodeling are eligible. The Public Art Ordinance authorizes the Art & Cultural Commission to establish policies and guidelines for the selection of public art works. REQUIRED COUNCIL ACTION: A motion authorizing staff to initiate contract negotiations with Michael Manjarris for Convention Center/Arena artwork is required. PRIOR/FUTURE COUNCIL ACTION: Prior Council action includes: 1.) The authorization of the Public Art Ordinance in March. 1987 which define the policies and guidelines for the selection of adwork for the City in 1998; 2.) The authorization for the project to proceed with the RFP; and 3) Presentation to Council of the selected art project. Future Council action will be approval of a contract for the installation of the artwork. RECOMMENDATION: The staff recommends approval. Marco A. Cisneros, Director Park and Recreation Department 17 CITY COUNCIL AGENDA MEMORANDUM May 2'1, 2002 AGENDA ITEM: Motion appointing City of Corpus Christi Board Member Representatives to Corpus Christi Reinvestment Zone Number Two Board of Directors. ISSUE AND BACKGROUND: The Corpus Christi City Council passed an ordinance creating the Corpus Christi Reinvestment Zone Number Two on November 14, 2000. The ordinance also provided for the creation of a Board of Directors that would make recommendations to the City Council concerning the administration of the Zone. The Board's main duties are to prepare and adopt a project plan and reinvestment zone financing plan for the Zone and submit such plans to the City Council for its approval. The Board consists of fifteen (15) members with two-year staggered terms. The City Council has the authority to appoint at least ten (10) members of the board. The remainder of the members shall be comprised of appointees from the respective governing bodies of each taxing unit in the Zone other than the city. Each governing body may appoint one (1) member to the board but may waive its right to appoint a director if desired. The Nueces County Hospital District, Del Mar College, Nueces County and the Flour Bluff Independent School District have chosen to appoint members to this board. The board shall exceed fifteen (15) members if necessary for the City Council to make said ten (10) appointments. PREVIOUS COUNCIL ACTION: On November 21, 2000, the City Council passed a motion appointing seven Council members to the board: Javier Colmenero, Melody Cooper, Rex A. Kinnison, John Longoria, Betty Jean Longoria, Samuel L. Neal Jr. and Mark Scott. Terms have expired for these members. CONCLUSION AND RECOMMENDATION: City staff recommends that the Council appoint new members to this Board so that the Board may preside over a meeting tentatively scheduled for Tuesday, May 28, 2002. Armando Chapa City Secretary 18 AGENDA MEMORANDUM DATE: May 21,2002 SUBJECT: Mustang Island Fire Sub-Station and Parks and Recreation Beach Services Facility (Project No. 5114) AGENDA ITEM: Ordinance appropriating $235,357 from the Unappropriated Street Assessments in Street Capital Projects Fund No. 3530 for the construction of the Mustang Island Fire Sub-Station and Parks and Recreation Beach Services Facility; amending Ordinance No. 024730, which adopted the FY 2002 Capital Budget to increase appropriations by $235,357; and declaring an emergency. Motion authorizing the City Manager, or his designee, to execute a construction contract with Southern Contracting, Inc. in the amount of $473,800 for the Mustang Island Fire Sub-Station and Parks and Recreation Beach Services Facility. ISSUE: This proposed project is part of the Bond Issue 2000 package that was approved by the voters on November 14, 2000. The proposed facility will accommodate both the Mustang Island Fire Sub-Station and the Parks and Recreation Department Beach Services Facility. The fire station facility will provide service to Mustang Island; and the Parks and Recreation Beach Services Facility will provide life saving and beach cleaning services along the beach. FUNDING: Funds for this project are available in the FY 2001-2002 Capital Improvement Budget. RECOMMENDATION: Staff recommends approval of the motion as presented. j. t. ~d..~.~e,U -- Fi e~.~hief Tony Cisneros, Director of Parks and Recreation ~i~'ng~l R. Escobar, P. E., Director of Engineering Services Additional Support Material: Exhibit "A" Background Information Exhibit "B" Project Budget Exhibit "C" Bid Tabulation Exhibit "D" Location Map H:~HO ME~¥N DAS~GEN~Fice Oep~5114 - Mus[ang Island Sub-Station~AGENDA MEMO,doc BACKGROUND INFORMATION SUBJECT: Mustang Island Fire Sub-Station and Parks and Recrsation Beach Services Facility (Project No. 5114) PRIOR COUNCIL ACTION: 1. November 14, 2000 - Ordinance canvassing returns and declaring the results of the Special Election held on November 7, 2000, in the City of Corpus Christi for the adoption of seven prspositions; adopting and levying a sales and use tax pursuant to Section 4A of The Development Corporstion Act as apprsved by the voters in Prspositions 4 and 5 (Ordinance No. 024269). 2. January 30, 2001 - Motion authorizing the City Manager, or his designee, to execute an engineering services contract in the amount of $122,014 with Roots Foster Associates Architects for the following projects: · Mustang Island Fire Sub-Station (Bond Issue Project Al); · ADA and COED Imprsvements at Firs Stations (Bond Issue Project Al); · Health Department Roof Repairs (Bond Issue Project Al); and · Convention Center/Auditorium Roof Repairs (Non-Bond Issue Project). (Motion No. M2001-032) PRIOR ADMINISTRATIVE ACTION: 1. October 18, 2000 - Distribution of Request For Qualifications (RFQ) No. 2000-08 - (Public Health and Safety, Parks and Recrsation, Strset Imprsvement Projects) to 73 local arshitectural and engineering firms. 2. November 10, 2000 - Addendum No. 1 to the Request For Qualifications (RFQ) No. 2000-08 - (Public Health and Safety, Parks and Recreation, Strset Imprsvement Projects) to 73 local arshitectural and engineering firms. 3. January 10, 2001 - Addendum No. 2 to the Request For Qualifications (RFQ) No. 2000-08 - (Public Health and Safety, Parks and Recrsation, Strset Imprsvement Projects) to 73 local arshitectural and engineering firms. 4. June 71 2001 - Executed Amendment No. 1 to the Engineering Services Contract with Roots/Foster Associates Arshitects, Inc. for the Convention Center Roof in the deduct amount of ($13,310), for a total re-stated fee of $108,704. 5. September 171 2001 - Executed Amendment No. 2 to the Engineering Services Contract with Roots/Foster Associates Architects, Inc. for the Convention Center Roof in the amount of $4,770, for a total re-stated fee of $113,474. 6. October 311 2001 - Executed Amendment No. 3 to the Engineering Services Contract with Roots/Foster Associates Architects, Inc. for the Health Department Roof in the amount of $17,170, for a total rs-stated fee of $130,644. EXHIBIT "A" Page 1 of 3 PRIOR ADMINISTRATIVE ACTION: (continued) 7. January 3, 2002 - Executed Amendment No. 4 to the Engineering Services Contract with Roots/Foster Associates Amhitects, Inc. for the Mustang Island Fire Sub- Station in the amount of $24,990, for a total re-stated fee of $155,634. 8. March 19, 200 - Executed Amendment No. 5 to the Engineering Services Contract with Roots/Foster Associates Architects, Inc. for the Parks and Recreation Station in the amount of $21,912, for a total re-stated fee of $177,546. PROJECT BACKGROUND: The proposed project is part of the Bond Issue 2000 package that was approved by the voters on November 14, 2000. The proposed facility will accommodate the Fire Department and the Parks and Recreation Department. The fire station facility will provide service to Mustang Island and provide back-up service to Fire Station No. 15 on Padre Island which is located eleven (11) miles away. The Parks and Recreation Beach Services Facility will provide life saving and beach cleaning services along the beach. The new facility will house staff and life saving equipment and the asphalt-paved yard will provide an area for parking beach cleaning vehicles and storing equipment. PROJECT DESCRIPTION: This project consists of a combined facility to house the Mustang Island Fire Sub-Station #16 and Parks and Recreation Beach Services Facility. It will consist of an approximately 4,200 square feet pre-engineered metal building structure with finished interior spaces and an approximately 1,800 square feet metal parking shed with supporting drives, parking area and paved equipment yard. Work includes, but is not limited to, site grading and fill, fencing, culverts, septic system, concrete and asphalt paving, minor landscaping, concrete work, drywall partitions, doors and windows, cabinet work, interior finishes, accessories, signage, plumbing, HVAC and electrical. The working time for completion of the Project will be 120 calendar days from the issuance of the Notice to Proceed for the specific defined Fire Department area and a total of 180 calendar days for total project completion. BID INFORMATION: The City received proposals from four (4) bidders on May 3, 2002. See Exhibit "C" Bid Tabulation. The project consists of a Total Base Bid and two (2) Deduct Alternates. The bids range as follows: Total Base Bid from $473,800 Deduct Alternate No. 1 from $13,125 Deduct Alternate No. 2 from $2,250 to $777,068 to $23,000 to $10,000 The Architect's estimated construction cost for the project is $555,800. The cost of the facility was prorated between the Mustang Island Fire Station (Bond 2000) and the Park and Recreation station (Beach Cleaning). The prorated cost was based on the portion of the project dedicated to each facility. The project architect used the contractor's Schedule of Values as the basis for the cost assignment. H:~HOM E~LYN DAS~GEN~Fire Dept~5114 - Musleng Island Sub-$tation~AGENDA BACKGROUND.doc EXHIBIT "A" Page 2 of 3 The City's Consultant, Roots/Foster Associates Amhitects, Inc., and City staff recommend that based on Iow bid and past satisfactory experience, the a contract be awarded in the amount of $473,800 to Southern Contracting, Inc. of Corpus Christi, Texas for the Mustang Island Fire Sub-Station and Parks and Recreation Beach Services Facility Station total base bid amount. FUNDING: Funds for this project are available in the FY 2001-2002 Capital Improvement Budget and from Unappropriated Street Assessment Reserves. ORDINANCE APPROPRIATING $235,357 FROM THE UNAPPROPRIATED STREET ASSESSMENTS IN STREET CAPITAL PROJECTS FUND NO. 3530 FOR THE CONSTRUCTION OF THE MUSTANG ISLAND FIRE SUB- STATION AND PARKS AND RECREATION BEACH SERVICES FACILITY; AMENDING ORDINANCE NO. 024730, WHICH ADOPTED THE FY 2002 CAPITAL BUDGET TO INCREASE APPROPRIATIONS BY $235,357; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $235,357 from the Unappropriated Street Assessments in Street Capital Projects Fund No. 3530 is appropriated in the FY 2002 Capital Budget for construction of the Mustang Island Fire Sub-Station and Parks and Recreation Beach Services Facility. SECTION 2. Ordinance No. 024730, which adopted the FY 2002 Capital Budget, is amended to increase appropriations by $235,357. SECTION 3. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure on this the __ day of ,2002. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: This 17th day of May, 2002: James R. Bray, Jr. City Attorney R. J~ R~r{ing / Firs[ Assistant City Attorney Samuel L. Neal, Jr. Mayor R20912A1 ~ PROJECTLOCATr_ON~ APPROXZBATEL Y 11 I~ZLES NORTH ON SH 361 FROI~ ~ N I VZCT_Nr_TY ~P P~ECT No. 5114 NOT TO StoL& EXHZB%T "D" MUST~G ~S~D F%RE SUB-STAT%ON ~D C%~ COUNCZL EXHZB%T P~KS ~D RECR~T~ON B~CH SERVZCES FAC%LZTY o~ o~ ~NZZ~N= s~c~ c~ oF co~Pus CH~/~, ~ PAGE: I Of 1 DA~: 05/16/2002 TABULATION OF BIDS Page 1 of 1 DEPARTMENT OF ENGINEERING - CITY OF CORPUS CHRISTI, TERAS TABULATED BY: Angel R.Escobar, P.R., Director of Engineering Services ENGINEER'S RSTINATE: $555,800.00 DATEs May 3, 2002 TIME OF COMPLETION: 180 Calendar Days Parke Mustang Island Fire and and Recreation Beech Services (Project No. 5114) Facility Southern Contracting, Inc. 521 McBride Corpus Christi, Lane TX 78408 F.M.G. Contracting 3401 S. San Antonio, Co. Gevers, #1 TX 78210 Winship Constructn., 5019 Ambassador Corpus Christi, Inc. Ros TX 78416 Nuway International, 2621 Holly Corpus Christi, Inc. Road TX 78415 DEeCRIPTION QTY. DELT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT Total Base Bid. Total cost L.S. $473,800.00 $609,000.00 $716,900.00 $777,068.00 for all work deBcribed in plane & specifications, complete in place per Lump Sum Ded. Alt. No. 1. Total L.S. $13,125.00 $20,000.00 $18,000.00 $23,000.00 deductive coat for deleting Emergency Generator Unit & providing only empty conduit to generator location stubbed up & capped, complete in place per Lump Sum. Ded. Alt. No. 2. Delete L.S. $2,800.00 $2,600.0O'i $2,250.00 $10,000.00 Movable Wardrobe Storage Closet Units & Head Track Assemblies with Folding E Curtains. EXHIBIT "C" Page 7 of 1 PROJECT BUDGET MUSTANG ISLAND FIRE AND PARKS AND RECREATION STATION (Project No. 5114) May 14, 2002 FIRE STATION PARKS & REC. PROJECT TOTAL FUNDS AVAILABLE: Public Health and Safety 2001 CIP Fund (GO) $130,000.00 $0.00 Fire Station CIP Fund ................................................................ 24,856.00 0.00 Public Health and Safety CIP Fund ............................................... 1,648.97 0.00 Public Health and Safety 1992 CIP Fund (GO) ................................ 76,998.30 0.00 Public Health and Safety 2001 CIP Fund (GO) ................................ 109,136.46 0.00 Unappropriated Street Assessments ............................................. 0.00 235,357.00 Park Bond Fund ....................................................................... 0.00 29,163.00 Total ...................................................................................... $130,000.00 24,856.00 1,648.97 76,998,30 109,136.46 235,357.00 29,163.00 $342,639.73 $264,520.00 $607,159,73 FUNDS REQUIRED: Construction (Southern Contracting) Contingencies (10%) ..................................................................................................................... Consultant (Roots Foster Associates Architects) ................................................................................. Testing - Design (Fugro South, Inc,) ................................................................................................. Testing - Construction .................................................................................................................... Land and Right-Of-Way ................................................................................................................. Inspection Services (Roots Foster Associates Architects) ..................................................................... Engineering Reimbursements ......................................................................................................... Art In Public Places ....................................................................................................................... Incidental Expenses ...................................................................................................................... Total .......................................................................................................................................... $473,800.00 47,379.00 44,362.00 2,300.00 5,500.00 1,000.00 4,950.00 5,000.00 2,500.00 1,919.60 1,625.00 2,500.00 $592,835.60 EXHIBIT "B" Page 1 of 1 19 CITY COUNCIL AGENDA MEMORANDUM AGENDA ITEM: Date: May 21, 2002 A. Motion adopting the FY2002 CDBG, ESG and HOME Programs. Resolution adopting the City of Corpus Christi Consolidated Annual Action Plan (CAAP) for Community Planning and Development Programs for FY2002; authorizing the City Manager or his designee to submit the CAAP to the U.S. Department of Housing and Community Development; and authorizing the City Manager or his designee to make changes in the CAAP if required by the U.S. Department of Housing and Urban Development. ISSUE: HUD regulations require adoption of the CAAP. PRIOR COUNCIL ACTION: November 20, 2001 - Adoption of the FY2002 CAAP timetable. May 14, 2002 - FY2002 CAAP Public Hearing. REQUIRED COUNCIL ACTION: Adoption and Submission of the FY2002 CAAP. FUTURE COUNCIL ACTION: Acceptance of HUD funds for the CAAP and subsequent appropriation of the funds for the FY2002 Program. RECOMMENDATION: Staff recommends adopting the FY2002 CDBG, ESG and the HOME Programs and the CAAP for Community Planning and Development Programs for FY2002; authorizing the City Manager or his designee to submit the CAAP to the U.S. Department of Housing and Urban Development; and authorizing the City Manager or his designee to make changes in the CAAPAif r§quired by the U.S. Department of Housing and Urban Development. ~~ Hector G. Vallc:,~o, Acting HCD Department Director ADDITIONAL SUPPORT MATERIAL Background Information [] AGENDA MEMORANDUM BACKGROUND INFORMATION The Department of Housing and Urban Development (HUD) requires each local jurisdiction to consolidate into a single submission the planning and applications for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and the Emergency Shelter Grants (ESG) Programs. The Consolidated Plan for Community Planning and Development Programs, an overall 3-year strategy, was submitted in FY2000. The FY2002 CAAP represents the third (34) year CAAP that is the application for funding for the CDBG, HOME and ESG Programs. The CAAP describes the activities and projects to be assisted with funds received under these programs and other HUD programs that help to meet housing and community development objectives. The City received notice in January 2002 that its allocation for the FY2002 Program was $7,108,000. The allocation includes $4,950,000 for CDBG; $173,000 for ESG and $1,985,000 for HOME. The City of Corpus Christi is required to receive comments on the proposed CAAP for at least 30 days that started after the Planning Commission public hearing on March 20, 2002. Comments received will be included in the application that will be submitted to HUD for review and approval. The CAAP must be submitted to the HUD for review and approval by June 16, 2002 for the period August 1, 2002 through July 31, 2003. Attached is a listing of FY2002 projects/activities tentatively adopted at the public hearing on Tuesday, May 14, 2002, for the CDBG, HOME and ESG Programs for your consideration and approval. Revised 05-15-2002 ATTACHMENT"D" CITY OF CORPUS CHRISTI FY2002 CONSOLIDATED ANNUAL ACTION PLAN APPROVED CDBG PROGRAM FY2002 CDBG Allocation Reprogrammed Funds Program Income from Rehabilitation Program TOTAL FUNDS AVAILABLE FOR FY2002 CDBG PROGRAM $ 4,950,000 $ 251,842 $ 7OO,OOO $ 5,901,842 ADA Compliance - Individual Requests Construction of curb ramps where non exist or where existing curb ramps are reported to be inadequate for use 221,000 by persons with disabilities. ADA Compliance - Mary Grett School Araa Additional funds for design and construction of additional curb ramps in compliance with Texas Department of Licensing and Regulations where non exist or where existing curb ramps are found to be inadequate for use by 85,000 persons with disabilities. ADA Compliance - Memorial Hospital Araa Additional funds for design and construction of additional curb ramps in compliance with Texas Department of Licensing and Regulations where non exist or where existing curb ramps are found to be inadequate for use by 26,000 pemons with disabilities. Asbestos Testing and Removal Grant Program State and Federal regulations require compliance with State asbestos health protection rules and Federal emission standards for hazardous air pollutants. Asbestos testing and removal is required on housing that is 50,000 being demolished through the Code Enforcement and housing activities. Ben Garza Gym Locker Room Improvement Provide funding to install lockers and additional showers in the locker rooms and restrooms at the gymnasium. 55,000 The facility needs these types of support facilities installed in order to better serve its customers. Business Incubator/Accelerator Develop and sustain an economic development tool for the City of Corpus Christi that is designed to accelerate the growth and success of small businesses by providing a business resource canter and office space for start-up 50,000 and/or emerging businesses. Code Enforcement Sixty-five pement (65%) of the Code Enforcement effort to eliminate slum and blight, including removal of substandard structures, high weeds, debris, garbage, trash and other health hazards to the public is spent in target areas. The general fund supports one hundred percent (100%) of the clean up and mowing involved in 109,938 the elimination of slum and blight. This request is to provide only twenty percent (20%) of the staffing cost to supplement the efforts in the eligible CDBG areas. Comprehensive Planning Assistance Comprehensive Planning for the City of Corpus Christi includes all areas inside the city limits and the City's Extraterritorial Jurisdiction. The Comprehensive Planning program is an ongoing effort to develop new plans and regularly update previously adopted plans. Staff drafts of the plans include input from affected public agencies such as the U.S. Fish and Wildlife Service, Texas General Land Office, Texas Department of Transportation, 75,000 Texas Parks and Wildlife, Texas Natural Resources and Conservation Commission, and other affected govemmental entities. Before any plans can be approved by the City Council public input in the form of public hearings are conducted by city staff and city boards including the Planning Commission and the City Council. Corpus Christi Renewal Community To provide funding for staff support to implement the Renewal Community Tax Incentive Utilization Plan and Course of Action. An initiative to encourage public-private collaboration to generate economic development and 20,000 community revitalization in Census Tracts 1, 3, 4, 10 and 11. Demolition Grant Program Elimination of slum and blight, including demolition of substandard structures and removal of high weeds, debris, 215,700 garbage, trash and other health hazards to the public. Demolition/Replacement and Relocation Grant Funds ara used to demolish structures of property owners being assisted through the Demolition/Replacement Loan Program. Under the program, existing structures am demolished and a new replacement unit is reconstructed. It is anticipated that 20 units will be demolished at an estimated cost of $4,000 per unit. ($80,000 for demolition) Part of these funds will be used to provide grants to assist these homeowners with their relocation costs and related expenses while their house is being reconstructed, it is estimated that 20 homeowners will need relocation assistance at an estimated cost of $3900.00 per homeowner for six months of relocation. ($78,000) Emergency Home Repair Grant Program Emergency repair grants up to $6,600 are provided to homeowners who are very Iow income elderly and/or persons with disabilities. A majority of the repairs ars for roofing, plumbing, electrical, heating and minor structural. It is anticipated that emergency repairs will be performed on 130-135 units. FY2003 Consolidated Plan Preparation The Department of Housing and Urban Development (HUD) requires each local jurisdiction to consolidate into a single submission the planning and applications for the Community Development Block Grant (CDBG), HOME investment Partnership (HOME), and the Emergency Shelter Grant (ESG) Programs. In accordance with HUD regulations, the City is required to submit a new consolidated plan for FY2003. The "Plan," including both a planning document and an application for the CDBG, ESG and the HOME Programs are developed to achieve the goals to principally serve Iow and moderate income residents. The Consolidated Annual Action Plan describes the activities and projects to be assisted with funds received under these programs and other HUD programs that help to meet housing and community development objectives. This project proposal will in essence fund the preparation needed to conduct a new consolidated plan for FY2003. 200,000 884,470 90,000 General Administration Administration support for the CDBG, HOME and Emergency Shelter Grants programs. This activity is responsible for planning, oversight, coordination, staff supervision, monitoring and management. Technical 455,600 assistance is provided for special projects that foster housing and community development opportunities. Joe Garaa Recreation Center Improvements This project will provide the funding for roll up security shutters, new outdoor sports court surfacing, pavilion 85,000 replacement lights, backboards, scoreboards and parking lot overlay. Lead Based Paint Grant Federal regulations for the HOME and CDBG programs require compliance with Lead-Based Paint regulations in HUD assisted housing. The purpose of the Lead-Based Paint regulation is to protect young children from lead based paint hazards. These regulations apply to housing built prior to 1978. However, they do not apply to emergency repair projects, emergency shelter housing, zero bedroom units, efficiency units, vacant units to be demolished and non-residential property~ Additionally, these regulations do not apply to housing for the elderly or person with disabilities, unless a child under the age of six will reside in the unit. These funds will be used to test for the presence of lead-based paint or clearance testing for the presence of lead dust. It is anticipated that between the two programs, 100 houses will need a clearance test or paint test performed at an estimated cost of $500.00 per house. Minority Business Opportunity Committee (MBOC) This will fund staff salades for the support of the MBOC program. MBOC is an information clearinghouse for the City of Corpus Christi that provides comprehensive information on certifications and contracting opportunities from all levels of government. MBOC is the first contact information resource for sub-contractors, general contractors, entrapraneurs, and government officials in ragards to small business opportunities. 50,000 110,000 Old & New Bayview Cemeteries Restoration Master Plan Old Bayview and New Bayview Cemeteries are in dire need of restoration efforts related to the tombstones and the cemetery monuments in the two cemeteries. This is a historically significant project that will decrease the 25,000 blight in that area of the city. The funding for this project would be used to contract for special historic reconstruction master design services. Rehabilitation Loan Servicing & Delinquent Payment Collection This will pay for staff salaries to support the administration of loans provided to Iow income homeowners funded 55,889 through the Rehabilitation Loan Program. Rehabilitation Services Provide administrative support services to Iow and moderate income persons, such as loan processing, development of specifications and plans, inspections, housing counseling and other related services associated 602,600 with the various loan and grant programs. 2 Rolled Curb and Gutter - Manahiem Area Funds for design and construction phase of underground storm drainage lines to serve the Manshiem area as defined. This proposal includes the extension of a 5x5 box culvert connecting at Gollihar south on Evelyn and a 48" RCP on Sunnybrook to cross connect to the existing system serving Manshiem area. This project would be combined with the design and construction of Evelyn Street in the Sunnybrook/Evelyn/Gollihar/Kostoryz area. Single Family Rehabilitation Loan Program Provides loans to Iow and moderate income homeownem to rehabilitate their homes. It is anticipated that 10-15 units will be rehabilitated and 20-25 units will be reconstructed. Southmoreland Addition Area Street Improvement Phase 3B and 4B Provide funding for the design of approximately 2300 I.f. of street improvements on Lewis from Clemmer to Watson, 300 I.f.; Watson from Ayers to Naples, 1250 I.f.; Naples from Richard to Watson, 750 I.f. Improvements include design of pavement 28' B-B, curb, gutter sidewalks, driveways and underground drainage for Phase 3B. Funds for construction will be requested in future years. Sunnybrook/EvelynlGolliharlKostoryz Area St & Drainage Improvement 1) Design and construction (street and drainage) for Evelyn Street. Scope of construction consists of 28' B-B pavement cross section with curb, gutters, sidewalks, and driveways. Evelyn Street is proposed to have the underground storm drainage installed as part of the Rolled Curb and Gutter Replacement - Manshiem Area Phase 1. Future CDBG allocations will fund phased improvements in this area. 2) Authorization to improve Sunnybrook - Ayers to Kostoryz in preliminary design approved in FY01 ($10,000). T.C. Ayers Recreation Center Improvements Provide funding for interior improvements such as a new HVAC system, lighting, ceiling tiles and painting inside and outside of the building. Weed & Seed Program This will provide funding for staff support of the Weed & Seed Program. The Weed and Seed Program is a comprehensive multi-agency approach to combating violent crime, drug use and gang activity in high crime neighborhoods. The goals are to "weed" out crime from tableted neighborhoods and to "seed" the target site with a wide range of crime prevention programs and human services to prevent crime from re-occurring within the targeted area. 520,000 950,000 15,000 371,000 20,500 50,000 CITY OF CORPUS CHRISTI FY2002 CONSOLIDATED ANNUAL ACTION PLAN Boys & Girls Club of Corpus Christi Construction/irrigation of Kickball and soccer fields; installation of windows/framing across front of Boys & Girl~ 76,820 Club. Catholic Charities - Mother Theresa Shelter Improvements to a public facility to include bathing facilities with private dressing areas for men and renovating restrooms and larger room to be used for eating area., i.e. light snacks, coffee, etc. Smaller room will be renovated to used for reading, counseling, gathering place, etc. for homeless men and women. Improvements 90,108 will comply with all ADA requirements. Capital Cont#bution $96,600 Corpus Christi Hope House, Inc. Renovations to comply with ADA requirements and to improve the living conditions at the homeless shelters of 10,292 Corpus Christi Hope House. Capital Contribution $10,292 Corpus Christi United Little Miss Kickball To bring sports complex facilities into compliance with American Disabilities Act by creating a paved entrance 30,000 way to each of the fields. Gulf Coast Council of La Raza Will enable the Gulf Coast Council of La Raza, Inc to complete the 1) North Parking lot that will be used as a student Parking lot; 2) Outlining the landscaping of the North Parking areas along Home Rd., 3) Addition of a 32,000 locking gate for the Fire Lane Fire Department will retain Keys; 4) Architectural, engineering, and construction testing required for the project. Capital Cont#bution $10,000 LULAC Village Park Apts. To fund an activity court cover/shelter to protect community from weather e ements. Capital Cont#bution $10, O00 79,500 Neighborhood Centers of Corpus Christi Rehabilitation and improvements to the Marguerite Neighborhood center, at 2020 Marguerite Street, to include removal of all exterior cedar facing, replace it with new siding, provide for interior renovations to the existing 60,025 restrooms and to comply with current ADA standards. Capital Cont#bution $10,000 Nueces County Community Action Agency To weatherize homes occupied by families from Iow to very Iow incomes in target areas. Capital Contribution 80,000 $363,428 Westslde Business Association To provide funding for electrical, irrigation and base for setting art piece to finalize the completion of Crosstown 35,000 and Agnes Beautification Project. Capital Contribution $4,000 YMCA of Corpus Christi To fund the improvement of accessibility of mobility impaired individuals through renovation of restroom area in 15,400 men's locker room. TOTAL $5,901,842 4 APPROVED FY2002 EMERGENCY SHELTER GRANT (ESG) PROGRAM FY2002 ESG Allocation $173,000 Catholic Charities Provision of Homeless Prevention including short-term subsidies, security deposits or 1 ,t month's rent, mediation programs, legal services and payment to prevent foreclosure on a home. 15,000 Corpus Christi Hope House Provide emergency shelter and related services to teenage pregnant and homeless. 10,000 Corpus Christi Metro Ministries Continuation and enhancement of existing shelter operations and supportive services. 50,000 Gulf Coast Council of La Raza To assist in providing services to runaway, homeless, abused and neglected children ages 6 through 17 who are 25,000 in need of residential, counseling, and advocacy services in order to expedite reconciliation with their families. Mary McLeod Bethune Day Nursery, Inc. To assist the homeless with child care services that presently is needed by parents in sheitem that are in short 10,000 and long term treatment programs and do not quality for other state child care programs. Salvation Army Salvation Army operates a wide variety of social service programs which benefit the homeless. These include the Red Shield Lodge Dining Room, Red Shield Lodge, shelter for men, Project Bridge, the only shelter in the city which allows families to remain together; Project Bridge for families and individuals; a Homeless Veteran's program; Voice Works, a voice mail program which enhances employment opportunities; crisis aid to families and individuals; seasonal aid, including the distribution of food and clothing; job training, life skills counseling; information and referrals; and the only mobile feeding unit in the area. 20,000 The Ark Assessment Center & Emergency Shelter for Youth Provide a cadng intervention for abused and neglected males and females from birth through 17 yearn of age 15,000 by placing them in a secure environment. The Women's Shelter Emergency shelter for homeless victims of domestic violence and sexual assault and their children. Additional supportive services include, but are not limited to, safety planning and counseling for adults and children, legal 28,000 advocacy, community resource coordination, assistance with victims compensation claims, assistance in obtaining employment, affordable housing, and child care. TOTAL $173,000 APPROVED FY2002 HOME PROGRAM FY2002 HOME Allocation $1,985,000 HOMEBUYER ASSISTANCE PROGRAM A deferred, forgivable loan not to exceed $3,000 may be provided to iow income, homebuyem for the purpose 549,000 of meeting down payment and closing costs expenses. ADMINISTRATION/TECHNICAL ASSISTANCE Administrative funds for staffing, planning, oversight, coordination, staffsupervision, monitoring and evaluation, contracting, recordkeeping/reporting and overall program management. Technical assistance may be provided 198,500 to enhance the capacity of CHDO's, nonprofits, owners/investors of rental property and other organizations that may participate in the program. Also includes administrative funds for direct operating support for the CHDO's. MINOR REHABILITATION GRANT PROGRAM Minor rehabilitation of units with more than $1,000 but less than $6,500. Grants may be provided to homeowners 100,000 who are 62 years and older and/or persons with disabilities. MAJOR REHABILITATION LOAN PROGRAM Loans of 0% to 3% for qualified income families with up to a 20 year term. Reconstruction of owner-occupied units unsuitable for rehabilitation and to provide for the reconstruction of new suitable units. Relocation grants 250,000 may be provided for temporary relocation and a grant to provide funds to demolish and construct the replacement unit. NEW CONSTRUCTION Construction of new single family \ Multi - housing units. The units must remain affordable for a minimum of 20 years. A deferred loan, not to exceed $20,000, payable after the 1st mortgage is paid, may be provided to Iow 589,750 income home buyers for the purchase of a home. The amount of the deferred loan may be based on HUD income limits. Contracting with subrecipients by the CCClC is permitted. COMMUNITY HOUSING DEVELOPMENT ORG. (CHDO) * NEW CONSTRUCTION Low interest loans/grants to Community Housing Development Organizations (CHDO's) for the purpose of constructing new/rental housing units. ACQUISITION AND REHABILITATION 297,750 Financing to acquire and rehabilitate existing rental housing which would be owned, operated or sponsored by a Community Housing Development Organization is proposed as an activity. Housing acquired through this program may be made available to Iow income individuals under affordable conditions for a period up to 15 years. TOTAL $t,985,000 *COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS (CHDO)The City of Corpus Christi will set aside at a minimum the 15% ($297,750) required by regulations for use by the CHDO within the 24-month period. The City of Corpus Christi will provide technical assistance and capacity building as necessary. RESOLUTION ADOPTING TIlE CITY OF CORPUS CHRISTI CONSOLIDATED ANNUAL ACTION PLAN (CAAP) FOR COMMUNITY PLANNING AND DEVELOPMENT PROGRAMS FOR FY2002; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT THE CAAP TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO MAKE CHANGES IN THE CAAP IF REQUIRED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City of Corpus Christi Consolidated Annual Action Plan (CAAP) for Community Planning and Development Programs for FY2002 is hereby adopted. SECTION 2. That the City Manager or his designee is authorized to submit the CAAP to the U.S. Department of Housing and Urban Development. SECTION 3. That the City Manager or his designee is authorized to make changes to the CAAP if required by the U.S. Department of Housing and Urban Development. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Legal form approved '~ [ (~ ,2002; James R. Bray, Jr. City Attomey Samuel L. Neal, Jr. Mayor By: Lisa Aguilar t/ Assistant City Attorney 20 CITY COUNCIL AGENDA MEMORANDUM City Council Meeting - May 21, 2002 AGENDA ITEM: An ordinance amending Section 12-45.1, Code of Ordinances, relating to occupancy of vessels in the Marina; providing for severance; and providing for publication. ISSUE: The current ordinance limits the number of consecutive days owners, crew or guests of a transient vessel may stay aboard while docked within the Corpus Christi Marina to 5 days. Transient vessels, however, provide a unique opportunity to the City in that they are temporary users of the facilities. They are charged twice the rate for slip rental as Marina tenants, and they are limited to only two extended stays per year. Additionally, although the crews of such vessels usually stay aboard the vessels during their stays in Corpus Christi, the owners and guests typically will stay in local hotels. They frequent local restaurants and shops and make use of the City's many amenities. Extending the length of time transient vessels are able to remain docked in the Corpus Christi Marina will benefit the City, its citizens and the visitors themselves. It also provides increased customer service by meeting a very specific need of these visitors. The proposed maximum length of stay would be changed to 60 days for transient boaters. Additionally, Marina tenants are currently limited to staying onboard their boats for no more than 5 consecutive days for a total of 15 days per month. They must remove themselves from their boats for a minimum of 24 hours before they can make use of their second or third 5-day permit. Some of the Marina tenants live outside of Corpus Christi, even as far away as England. Having to vacate their boats for a 24-hour period places an undue hardship on them, especially if they are required to do so twice during their monthly stay. Extending the number of consecutive days a Marina tenant can stay aboard his or her vessel from the current 5 days to 15 days per month will remove this obstacle. It will enhance business relations between the Madna and its tenants, and increase customer service, thus making the rental of slips at the Marina a more attractive option for boaters interested in long term docking facilities. The current ordinance also requires that "Temporary Stay Aboard Permits" be displayed in such a manner that they can be "readily observed by the marina patrol craft." The submitted ordinance requires that persons with such a permit must present that permit upon request by city staff. There is no need for the permit to be posted. Additionally, definitions for various terms have been included in the new ordinance. BOARD/COMMISSION REVIEW: The WatedShore Advisory Committee, at their Mamh 7, 2002 meeting, voted to ask that the City Council consider making changes to Section 12-45, Code of Ordinances, in order to make the Corpus Chdsti Marina a more boater friendly madna. However, staff does not recommend all of the changes that the Committee proposed. The Committee generally is asking to change the ordinance title and other minor changes from "Prohibition Against Living Aboard Water Craft," to "Living Aboard Water Craft." The Committee's complete version is shown as Exhibit "A". The proposed ordinance reflects the staff recommendations. RECOMMENDATION: Staff recommends approval of the staff version of the ordinance as presented. ADDITIONAL SUPPORT MATERIAL Background Information Ordinance Exhibit "A" Marco A. Cisneros, Director Park and Recreation Department X X X AGENDA MEMORANDUM BACKGROUNDINFORMATION Prior to 1972, the City of Corpus Christi permitted persons to live aboard vessels moored in the Corpus Christi Marina. There were a number of problems associated with these "live aboard" vessels that resulted in the City Council passing an ordinance in 1972 which prohibited people from permanently living on their vessels while docked in the Marina. The ordinance also severely limited the number of days a person could stay aboard their vessel. This ordinance applied to both marina tenants and those who were visiting Corpus Christi. People on visiting crafts, called "transient vessels," were allowed to stay aboard no more than 5 consecutive days, the permit for which could be renewed one time. Regular slip tenants were limited to only 5 consecutive days dudng the month. The ordinance was modified to permit resident tenants the opportunity to stay aboard their vessels for three 5-day periods and transient vessel personnel could stay for thirty consecutive days, but only twice during a year. However, the occupants of the transient vessels were required to vacate their vessels for ten days before they could come back aboard for their second set of thirty days. Marina tenants were required to vacate their craft for a period of 24 hours between 5-day stays aboard the vessel. The restrictions of the ordinance, as it now stands, have caused difficulties for the Marina. Approximately 600 to 700 transient vessels make use of Madna facilities in a given year. The 30-10-30 restrictions of the ordinance have caused visitors to seek docking facilities elsewhere where they might be able to stay, unhindered by the need to vacate their craft, for longer periods of time. The amendment of the existing ordinance to allow visitors to rent slips at the Marina for two 60-day periods will increase the attractiveness of the Marina to visiting vessels and will help to increase the number and duration of transient vessels renting slips. The requirement of limiting Marina tenants to 5 consecutive days, with a 24-hour break between periods of staying aboard their own craft, has also been a difficulty for the tenants that live outside of Corpus Christi and has adversely effected the business relationship between the City Marina and its tenants. This cumbersome method, of requiring marina tenants to vacate their vessel for 24-hour periods, has proved to be a hindrance to fully leasing the City's facilities. By eliminating the 24-hour "stay away" policy and increasing the consecutive days stay to 15 days, boat owners will be more attracted to storing their vessels at the Marina's facilities. EXHIBIT "A" Sec. 12-45.1 Living Aboard Water Craft ~ .... k.., .......... ki,.k used by +~'" persons aboard as a (a) .... w Water craft .................... ~o dwelling unit shall no._it be permitted to moor, tie up or anchor within the Corpus Christi Marina, its basins, fairways c,qd 9[ anchorage areas, as such areas are defined and described in the United States Corps of Engineers geodetic chart and map of said area except for transient craft as defined herein. As used herein, "dwelling" means any water craft ........ that is being used as a permanent abode or residence in which a person or persons have the intention of remaining. Consideration shall be given to whether the person or persons residing thereon maintain another dwelling place, but whether or not another dwelling place is maintained shall not be determinative of whether the water craft is being used as a dwelling unit. Use of a water craft other than as a transient water craft for more than a fifteen-day (15) period as a residence or dwelling shall be prima facie evidence that such water craft is a dwelling unit as prohibited herein. Those wishin,q to remain onboard overni.qht on any water craft moored in the Corpus Christi Marina shall be required to first obtain a "Temporary Authorization to Stay Aboard Permit" from the marina supervisor or his/her designee. Said Permit must be presented upon any request by city staff or other law enforcement personnel. (b) Transient craft shall be permitted to tie up, moor or anchor in an area in the Corpus Christi Marina assigned by the marina supervisory ctcff or his/her designee. The term "transient craft" herein shall ...... ;o;*"-~ tc ,k.. ,.;~, k,, ~'""+ o; ~' ..... k~..~ .... ~,k 3 k..,., ~,. , .... 3ny vessel for which there is not an existinq slip lease authorizing mooring within the city marina. :Fhe-tTransient craft owners, crews or guests staying aboard such craft shall be permitted to remain for a period of .... ~v, sixty (60) consecutive days, provided a permit is obtained from the office of the marina supervisor designating said craft as a temporary dwelling for a period not to exceed ~"'",,.v ~,/~ sixty (60) consecutive days from date of issue, said permit *" k~ ,~,~ .... ,~ !... .... k ...... +k..+ it ...... · ~.., ~.~ ..~. ..... .~ k,. ,k .... ; .... *-"' ~-~* must be presented upon request by any city staff or other law enforcement personnel; and provided all other rules and regulations of the marina are obeyed. Said fivc dcy sixty-day (60) permit .... j ........... will be allowed one time per six (6) month period by the marina supervisor or his/her designated representative upon a clear showing by the "transient craft" that all rules and regulations of the marina have been complied with. (c) Leased Slip (Tenant) Regular slip tenants shall be permitted to stay aboard their craft while such craft is tied up, moored or anchored within the marina at the approved assigned slips and provided a permit is obtained from the office of the marina supervisor designating said craft as a temporary dwelling for a period not to exceed ~ fifteen (15) r:~mseeutive days ~-"'~' ................ suo per cai d said permit ' en ar month, tc '""'~"' ~'" "~' ..... '~ b~,' *h .... ~ .... *'"' """~* must be presented upon any request by city staff or other law enforcement personnel; and further provided all other rules and regulations of the marina are obeyed. (d)Nc ;Raw sewage, garbage, junk, waste, oil or any other substance whatsoever which might pollute or damage the aesthetics or the water quality shall not be deposited or permitted to be deposited in the waters of the Corpus Christi Marina, its basins, fairways cnd or anchorage areas. Pumping of marine heads overboard will not be tolerated. Such action is a violation of the City of Corpus Christi Code of Ordinances, Marina, County, State and/or Federal Requlations. (e) .Hc ;crcc~ cr ........ ~--" ~' ..... ;**'-'~ tc .... *h.. ~..,..~ Land areas of the Corpus Christi,.,_,~A'"';";"-~,,v,~._, Marina, the L-head and T-heads, or any other land area of the Corpus Christi Marina shall not be used as a dwelling place for any length of time, whether the person or persons be in a vehicle, tent, any improvised shelter or without shelter. As defined herein, an overnight stay shall constitute using the land area as a dwelling place. AN ORDINANCE AMENDING SECTION 12-45.1, CODE OF ORDINANCES, RELATING TO OCCUPANCY OF VESSELS IN THE MARINA; PROVIDING FOR SEVER- ANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Section 12-45.1, Code of Ordinances, is revised to read as follows: "Sec. 12-45.1. Prohibition against living aboard water craft. "(a) No water craft whatsoever which is being used by the persons aboard as a dwelling unit shall be permitted to moor, tie up or anchor within the Corpus Christi Marina, its basins, fairways, and anchorage areas, as such areas are defined and described in the United States Corps of Engineers geodetic chart and map ,~,"~said~r~ ^ ..... ~ ~.A;- ,,~...A,,; ................ .... ,__ "(b) As used in this section: (1) "Dwelling" means any water craft which is beinq used as a permanent abode or residence in which a person or persons have the intention of remaininq. Consideration will be given to whether the person or persons residing thereon maintain another dwellinR place, but whether or not another dwellinq place is maintained shall not be determinative of whether the water craft is being used as a dwellinq unit. (2) "Transient craft" means a vessel that does not occupy a boat slip in the city marina by virtue of any contractual agreement with the city or other authorized entity. (3) "Transient slip" means any marina boat slip occupied by a transient craft. Use of a water craft other than a transient craft for more than fifteen days during any calendar month as a dwell nq s prohibited. "(-b-) (d) Transient craft shall be permitted to tie up, moor or anchor in an area in the Corpus Christi Marina assigned by the marina super- v;°''''',o,,,y staff ~-~.A · ..... · .... :__, ___.,,, ,.A.~:_ ~,.~,, ...... ;.;,~.~ "e~) The transient craft's owners, crews or quests may stay aboard the craft for a period of up to sixty (60) consecutive days, provided: (1) a transient craft permit is obtained from the office of the marina superintendent des gnat nq the craft as a temporary dwe ng for a period not to exceed sixty (60) consecutive days from date of issue; (2) the transient craft permit is presented to city staff upon re- quest; and (3) further provided the transient craft's owners, crews, and .quests comp y w th all other rules and regu at ons of the marina during the transient craft permitted period. A transient craft permit may be renewed one time during any twelve month period by the marina superintendent or his designated repre- sentative upon a clear showing by the transient craft's owners, crews, or .quests that all rules and regulations of the marina have been com- plied with durinq the previous transient craft permitted period. "(g) The violation of any applicable provision of this Code by the transient craft's owners, crews, or guests durinq a permitted period may subject the transient craft permit to immediate revocation by the marina super- intendent. ~ A Rregular slip tenants ~ may stay aboard t~re~ his/her craft while such the craft is tied up, moored or anchored within the marina at the approved assigned slips and provided: ~ a temporary stay aboard permit is obtained from the office of the marina su~ superintendent designating said the craft as a temporary dwelling for designated days not to exceed fwe (5) a total of fifteen (15) eoflseeut~¥e days during the calendar month from the dc~te of issue, specified in the permit; durinq any calendar month the total stay aboard days shall not exceed a total of fifteen (15) days; 2~ said the temporary stay aboard permit ~ ~ is presented to city staff upon request; and ~ further provided the reqular slip tenant complies with all other rules and regulations of the marina are-obeyed during the tem- porary stay aboard permitted period. "(d) ~ No raw sewage, garbage, junk, waste, oil or any other substance whatsoever which might pollute or damage the aesthetics or the water quality shall be deposited or permitted to be deposited in the waters of the Corpus Christi Marina, its basins, fairways and anchorage areas." "(e) (i) No person or persons shall be permitted to use the land areas of of the Corpus Christi Municipal Marina, the L-head and T-heads, or any other land area of the Corpus Christi Marina as a dwelling place for any length of time, whether the person or persons be in a ve- hicle, tent, any improvised shelter or without shelter. As defined herein, an overnight stay shall constitute using the land area as a dwelling place." SECTION 2. If, for any reason, any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judg- ment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite in- tent of the City Council that every section, paragraph, subdivision, phrase, word and provision hereof shall be given full force and effect for its purpose. SECTION 3. Publication will be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. That the foregoing ordinance was read for the first time and passed to its second read- ing on this the Samuel L. Neal, Jr. Henry Garrett Brent Chesney Javier D. Colmenero Bill Kelly day of ,2002, by the following vote: Rex A. Kinnison John Longoria Jesse Noyola Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the day of Samuel L Neal, Jr. Henry Garrett Brent Chesney Javier D. Colmenero Bill Kelly ,2002, by the following vote: Rex A. Kinnison John Longoria Jesse Noyola Mark Scott PASSED AND APPROVED on this the day of ATrEST: CITY OF CORPUS CHRISTI ,2002. By: By: Armando Chapa, City Secretary Samuel L. Neal, Jr., Mayor APPROVED AS TO LEGAL FORM this /~/~day of ! -c JAMES R. BRAY, JR., CITY ATTORNEY Eliza'-~eth ~ Hundloy, A~sista/ht City Attor~.~ ,2002. 21 CITY COUNCIL AGENDA MEMORANDUM AGENDA ITEMS: Date: May 17, 2002 A.Ordinance amending the Master Cable Services Regulatory Ordinance governing use of city streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas by providers of cable services B. Ordinance granting to Texas Cable Partners, Inc. (Time Warner) a non-exclusive franchise to construct, maintain, and operate for a period of fifteen years, and during any extensions thereof, a cable television system and facilities and additions thereto, in, under, over, along, across and upon the streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas C. Ordinance amending ClearSource franchise to require cablecasting of Public, Eduational and Government access channel programming within 30 days of effective date D. Ordinance approving transaction between ClearSource, Inc. and Grande Communications Holdings, Inc., subject to requirements BACKGROUND: Please see attached information. City Manager Agenda Item A: A.Ordinance mnending the Master Cable Services Regulatory Ordinance governing use of city streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas by providers of cable services Background: The Master Cable Service Ordinance was adopted by City Council in November 1999. It covers such topics as: Technical Standards Customer Service Practices Construction Standards General Financial and Insurance Provisions including 5% franchise fee Revocation Procedures Purchase of System Procedures Sale or Transfer Provisions Franchise Requirements Proposed Changes: There are several changes of an editorial nature which do not change the original intent, found at Sections 4.6 D, 4.8 B (3), 4.11, 5.1 B, 5.3, 6.1, 7.3, 7.4, 7.6, 7.8B, 8.1, 8.8, 9.4, 16.2. Major Changes: 6.2 B PEG Access and Exhibit A: Requires franchised cable operators to provide plug and play of public access programming according to the schedules developed by the user groups. Provides that user groups will administer the rules and procedures for the public access channels. 7.7 C was deleted, so that cable operator's failure to perform standard installation ~vithin 5 business days no longer entitles customer to receive installation for free; instead, 7.7D was amended to impose a requirement that cable operator use best efforts to meet all subscriber appointments. 7.8 A (1) extends time for cable operator to respond to no picture/no sound report to 36 hours instead of 24 hours to establish a standard that the cable operator can meet 100% of the time. 7.8 I extends time to restore ground after underground construction to 120 hours after connection instead of 72 hours to establish standard that cable operator can meet 100% of the time. 7.8 E deletes language regarding refunds for pay for view events. 13.1 was deleted which gave City right of first refusal of any bona fide offer to purchase the System. This provision was fairly standard when there were many cable companies operating 2 systems. Now that there are only a few cable companies who control all of the franchises, this provision is no longer standard. Recommendation: Adopt Ordinance as presented on first reading. Agenda Item B Ordinance granting to Texas Cable Partners, Inc. (Time Warner) a non-exclusive franchise to construct, maintain, and operate for a period of 15 years, and during any extensions thereof, a cable television system and facilities mid additions thereto, in, under, over, along, across and upon the streets, lanes, avenues, alleys, sidewalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas Background: From Athena Cablevision to Time Warner In 1981, the City of Corpus Christi granted a 15-year cable franchise to Athena Cablevision at a time when there was significantly less federal regulation of cable franchises. The franchise required four percent franchise fee payment. In 1987, the City approved transfer of the franchise to TCI Cablevision of Texas, Inc. (TCI). In 1989, The City granted a 5 year extension in return for equipment for City to broadcast Council meetings. In September 1998, TCI requested authorization of a merger with AT&T, with TCI continuing to operate the franchise. Council approved the merger in January 1999. Council approved a transfer to Texas Cable Partners (Time Warner) in November 2000, at which time the franchise was extended for an additional six months, and the franchise fees ~vere increased to 5 percent, (consistent with ClearSource franchise granted about this time.) Franchise Renewal History The City pursued a franchise renewal process in May 1998 when TCI Cablevision issued notice to renew the franchise, three years before end of term. In November 1998, the City Council authorized the hiring of the Bailer Herbst taw firm to assist the City with the cable television franchise negotiation process. Over the years, federal cable law was amended, resulting in complicated and formal process for renewal. The federal cable act provides for a specific "formal" renewal process, requiring the following actions: City issues invitation to formally submit proposed cable television franchise agreement City analyzes proposal City holds public hearing City issues preliminary determination Cable operator accepts determination or issues request for formal administrative hearing Cable operator can appeal the city's final resolution to state or federal court The Cable Act also allows parties to negotiate informally, which is customarily done. We agreed with TCI to proceed under the "informal" process, with each party reserving its right to initiate the formal process. Consistent with federal cable law, the City began the process of identifying community needs and requirements for use in the development of a Master Cable Services Regulatory Ordinance, and 4 Model Franchise Agreement, to assist with renewal process. This consisted of an information gathering process during which many groups were surveyed to identify their cable-related needs. The City also reviewed the financial, engineering, technical and compliance reports of the cable operator. On September 1, 1999, the City completed its information gathering process and reviewed and developed the Cable Franchise Renewal Report. The report included the following documents: The Application: a questionnaire requesting detailed information on the cable operator's continued legal, technical, and financial qualifications to operate a cable system, as well as information on the proposed system and service offerings; Priorities and Preferences: an outline of cable-related priorities and preferences for the City identified from the surveys; Master Cable Services Regulatory Ordinance: - a draft ordinance that was developed to provide all applicants seeking a franchise with the benefit of similar obligations, and to ensure that the standards and requirements for the use of the right-of-xvay are consistent ~vith applicable law and the needs and requirements of the City; and Model Franchise Agreement: A draft agreement incorporating the priorities and preferences. In November 1999, the City Council approved the second reading of the Master Cable Regulatory Services Ordinance, with no objections from any existing or potential cable operator. In September 1999, the City submitted the application materials for a cable television franchise, which included the Application form, Priorities and Preferences, Master Cable Services Regulatory Ordinance, and Model Franchise Agreement to TCI and requested their proposal for franchise renewal. City requested that TCI maintain the status quo with respect to the operation of the public, educational, and governmental access (PEG) channels, and that TCI provide PEG feed to the other franchised cable operator. Additionally, the City requested four strands of dark fiber to connect approximately 40 city facilities to create the institutional network. TCI submitted its renewal application in February 2000. In its application, TCI did not make specific proposals for PEG or an Institutional network, but instead stated that TCI wanted to negotiate these issues. Staff met with TCI and made considerable progress in solving issues relating to terminology and other differences, including agreement on five percent franchise fee. However, the obligations and requirements for public, educational, and governmental access, and the institutional network requirements could not be resolved. TCI informed the City that it no longer wanted to continue the obligation it had under its current franchise to operate public access, including making available its facilities with a studio and equipment to the public to develop public access programming. TCI argued that any franchise requirements to provide operation or financial support for PEG would be charged against the five percent franchise fee. TCI reported that it could not meet the City's institutional network needs because it had built past many of the requested connection points. On September 1,2000, before the PEG and I-net issues could be resolved, TCI requested authorization to transfer the franchise to Texas Cable Partners (Time Warner). The franchise renewal negotiations were put on hold until conclusion of the transfer review process. In November 2000, Council approved the transfer request. At that time, the franchise was extended six months, and the franchise fee was increased to five percent effective November 1, 2000. Staff held its initial meeting to discuss franchise negotiation with Time Warner in November 2000. Time Warner indicated their concurrencew'lth TCI's position' ' regarding' its desire to cease the current obligations for public access. The City continued negotiations on public access and I- net as well. Staff met with KEDT, the local PBS studio, to determine whether KEDT ~vould be willing to operate the access studio. The personnel costs were estimated at $130,000 annually. Proposed franchise for Time Warner: The proposed franchise provides the following: 15-year franchise term City-enforced customer service standards 5% franchise fee on gross revenues, payable quarterly (since January 2001) 750 MHZ upgrade within 36 months (already completed) Buildout required in all areas with 30 homes per aerial mile Institutional network: Provides 2 strands of dark fiber to 30 specified facilities to improve communications technology, 20% discount on modem service, extending line to Marina Provision for Public, Education and Governmental Access Channels: - Four channels (2 public, 1 government, 1 education) with triggers for up to six channels - Each cable operator provides plug-and-play of Public Access with schedule to be developed in accordance with newly adopted Rules and Procedures for Public Access - Capital support grants of $200,000 in Year 1, $50,000 in Year 7 - Should other franchised cable operators fail to provide cablecasting for public, educational and govermnent access within 30 days of effective date, Time Warner's obligations for public and government access will cease Emergency Alert System requirement Periodic performance evaluations every four years upon request by City Broad programming categories required (education, weather, news, public affairs, sports, children/family oriented, arts, Spanish-language, science) Insurance requirements Indemnification provisions $100,000 Performance Bond Liquidated damages for franchise violations of $500/day for major offenses/$300/day for rest Revocation procedures for major violations Free basic cable service to each City building and K-12 school campus, and free modem service to schools and libraries Provisions requiring level-playing field to ensure same franchise requirements for wired cable operators Recommendation: Adopt the Ordinance as presented on first reading. 7 Agenda ltems C&D C. Ordinance amending ClearSource franchise to require cablecasting of Public, Eduational and Government access channel programming within 3 0 days of effective date D. Ordinance approving transaction between ClearSource, Inc. and Grande Communications Holdings, Inc., subject to requirements Background: The ClearSource franchise states that the City would use its best efforts to require the incumbent cable operator to provide a feed to ClearSource for the Public, Educational, and Governmental Access channels, requiring ClearSource and the incumbent provider (now Time Warner) to share in the costs. Time Warner and ClearSource could not make a mutually satisfactory agreeement for a feed, therefore, the ClearSource franchise needs to be amended to require the provision of the following services to broadcast the Public, Educational, and Governmental Access channels: a) For public access channels, currently two, Grantee must provide equipment and personnel to provide playback services within thirty days of effective date of the Amendment b) For educational and governmental access channels, City will provide Grantee with fiber connection for each channel. Grantee will make ail arrangements to receive the feeds to begin cablecasting of each channel within thirty days of effective date of the Amendment. In consideration for amendment of the franchise, the City will agree to approve the transaction between ClearSource and Grande Communications Holdings, Inc., subject to acceptance by Grande Communications ClearSource of the franchise amendment. Recommendation: Adopt the Ordinances as presented on first reading. May 16, 2002 To: David R. Garcia, City Manager , , v. From: Jimmy Bray, City Attorney ~4/~ ~'~ Re: Public Access Studio The general cable franchise renewal process has been outlined in an accompanying memo. This memo will address specifically the issue of what the City can compel Time-Warner to provide with respect to the public access studio. Cable television franchises are governed primarily by federal law, the Cable Act of 1984, as amended, codified in 47 U.S.C. § 531 which provides: "(a) A franchising authority may establish requirements in a franchise with respect to the designation or use of channel capacity for public, educational, or governmental [PEG] use only to the extent provided in this section. "(b) A franchising authority may in its request for proposals require as part of the franchise, and may require as part of a cable operator's proposal for a franchise renewal, subject to Section 626, that channel capacity be designated for public, educational, or governmental use, and channel capacity on institutional networks be designated for educational or governmental use, and may require rules and procedures for the use of channel capacity designated pursuant to this section." 47 U.S.C. § 541(a)(4)(B) provides that a local government: "may require adequate assurance that the cable operator will provide adequate public, educational, and governmental access channel capacity, facilities, or financial support." It is important to note that the City's authority under 47 U.S.C. §541 (a) (4) (B) to require a cable operator to furnish PEG facilities and financial support does not extend to the ability to compel a cable provider to actually operate or run a PEG access facility. While the City could require the cable provider to provide financial support for the operation of the studio, such financial support would be credited against the City's five percent franchise fee; i.e., the general fund would be reduced by that amount. 47 U.S.C. § 542(g). On the other hand, a required capital contribution for studio facilities would not be deducted from the franchise fee. Id. It is estimated that the operating cost of the studio, personnel, and maintenance would be about $150,000 annually. The franchise fee under Texas law is a street rental for the use of the public streets and rights-of- way by a private business. Fleming v. Houston Lighting & Power Co., 138 S.W. 2d 520 (Tex. 1940), on motion for rehearing 143 S.W.2d 923 (Tex. 1940) (upholding 5% fee). As with most Texas cities, total franchise fees paid to the City constitute the third largest source of funds for the general fund behind ad valorem taxes and sales taxes, constituting 12% of our general fund revenues. Electric franchise fees are budgeted at $10,100,000, telephone franchise fees are budgeted at $5,205,900, and cable franchise fees are budgeted at $1,163,900. (It should also be noted that cable franchise fees may be further reduced. The Federal Communications Commission recently issued a preliminary ruling that cable modems do not constitute cable service, and Time-Warner has notified the City it will not longer include this service in its gross MAY-17-2002 08:12 FROM:BALLER HERBST LAW 6123394789 T0:361 880 3239 P.003x005 receipts calculation, This is estimated to cost the City approximately $130,000 annually. The City has notified Time- Warner that it disagrees with the ruling, Cities nation wide are contesting the FCC ruling and alpo filing comments in a rulemaking proceeding of the FCC. (See attached article from the National League of Cities.) In addition to the co`st, the other primary factor to be weighed would be how the studio would actually be operated. Alternatives includei 1. Operation by the City through City e'~ployees. 2. Operation through a non-profit corporation, funded by the City or other sources. 3. Operation through an entity such as a university, funded by that entity and/or the City. APPROVI~D: Adrian Herbst The Bailer Herb,st Law Group MASTER CABLE SERVICES REGULATORY ORDINANCE CITY OF CORPUS CHRISTI, TEXAS MASTER CABLE SERVICES REGULATORY ORDINANCE MAS fER CABLE SERVICES REGULATORY ORDINANCE TABLE OF CONTENTS Page ARTICLE 1.1 ARTICLE 1. STATEMENT OF INTENT AND PURPOSE .......................................................... 5 Statement of Intent and Purpose .............................................................................. 5 2. SHORT TITLE ......................................................................................................... 6 ARTICLE 3. DEFINITIONS .......................................................................................................... 6 3.1 "Basic Cable Service". ............................................................................................. 6 3.2 "Cable Act". ............................................................................................................. 6 3.3 "Cable Internet Service" . ........................................................................................ 7 3.4 "Cable Service" or "Service". .................................................................................. 7 3.5 "Cable Television System" or "Cable System". ...................................................... 7 3.6 "Capital Contribution". ............................................................................................ 8 3.7 "Capital Costs". ........................................................................................................ 8 3.8 "Channel". ................................................................................................................ 8 3.9 "City". ...................................................................................................................... 8 3.10 "Class IV Cable Communications Channel". .......................................................... 8 3.11 "Community Access Corporation" .......................................................................... 8 3.12 "Complaint". ............................................................................................................ 8 3.13 "Converter". ............................................................................................................. 8 3.14 "Council". ................................................................................................................ 9 3.15 "Direct Incremental Costs". ..................................................................................... 9 3.16 "Drop". ..................................................................................................................... 9 3.17 "Educational Access Channels". .............................................................................. 9 3.18 "Effective Date". ...................................................................................................... 9 3.19 "FCC". ..................................................................................................................... 9 3.20 "Franchise". ............................................................................................................. 9 3.21 "Franchise Agreement". ......................................................................................... 10 3.22 "Franchise Area". ................................................................................................... 10 3.23 "Franchise Fee". ..................................................................................................... 10 3.24 "Government Access Channels". ............................................................................. 6 3.25 "Grantee". .............................................................................................................. 10 3.26 "Grantor". ............................................................................................................... 11 3.27 "Gross Revenues .................................................................................................... 11 3.28 "Incumbent Grantee" ................................................................................................ 7 3.29 "Institutional Network" or I-Net .............................................................................. 7 3.30 "Institutional Network Services". .......................................................................... 12 3.31 "Lockout Device". ................................................................................................... 8 MASTER CABLE SERVICES REGULATORY ORDINANCE 3.32 "Municipal Telecommunications Consent Fee". ................................................... 12 3.33 "Non-Commercial". ............................................................................................... 13 3.34 "Normal Business Hours". ..................................................................................... 13 3.35 "Normal Operating Conditions". ........................................................................... 13 3.36 "Other Programming Service". ................................................................................ 9 3.37 "Person". ................................................................................................................ 13 3.38 "Public Access Channels". ..................................................................................... 13 3.39 "Resident". ............................................................................................................. 13 3.40 "Right-of-Way". ..................................................................................................... 13 3.41 "Service Interruption 14 3.42 "Standard Installation". .......................................................................................... 14 3.43 "Subscriber". .......................................................................................................... 14 3.44 "System". ............................................................................................................... 14 ARTICLE 4. FRANCHISE REQUIREMENTS ........................................................................... 10 4.1 Unlawful to Operate Without a Franchise ............................................................. 10 4.2 Franchises Non-Exclusive ..................................................................................... 10 4.3 Franchises Non-Discriminatory ............................................................................. 15 4.4 Franchise Territory ................................................................................................. 16 4.5 Term of the Franchise ............................................................................................ 16 4.6 Federal, State, and City Jurisdiction ...................................................................... 16 4.7 Rights Reserved To Grantor .................................................................................. 17 4.8 Franchise Agreement ............................................................................................. 18 4.9 Initial Franchise Applications ................................................................................ 19 4.10 Consideration of Initial Applications ..................................................................... 20 4.11 Franchise Renewal ................................................................................................. 21 4.12 Grant of Additional Franchise and Competing Service ......................................... 21 4.13 Permits for Non-Franchised Entities ...................................................................... 23 4.14 Competition Review .............................................................................................. 19 ARTICLE 5. DESIGN PROVISIONS ......................................................................................... 20 5.1 5.2 5.3 5.4 5.5 5.6 System Design ....................................................................................................... 20 The System ............................................................................................................. 25 Drops to Public Buildings ...................................................................................... 26 Use of Grantee Facilities ........................................................................................ 26 Upgrade of System ................................................................................................. 26 Non-Discriminatory Access To Cable System ...................................................... 26 ARTICLE 6. INSTITUTIONAL NETWORK, AND PUBLIC EDUCATIONAL AND GOVERNMENTAL ACCESS ...................................................................................................... 28 6.1 Institutional Network, Access Channels ................................................................ 28 6.2 Proof of Performance Testing ................................................................................ 29 ii MASTER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 7. TECHNICAL STANDARDS AND CUSTOMER SERVICE PRACTICES ........ 29 7.1 General Technical Standards and Customer Service Practices .............................. 29 7.2 Technical Standards ............................................................................................... 30 7.3 Test and Compliance Procedure ............................................................................ 30 7.4 Emergency Requirements ...................................................................................... 30 7.5 Programming Decisions ......................................................................................... 31 7.6 Cable System Office Hours and Telephone Availability ....................................... 31 7.7 Service Calls and Installations ............................................................................... 35 7.8 Repairs and Interruptions ....................................................................................... 38 7.9 Disconnections, Downgrades and Refunds ............................................................ 41 7.10 Communications Between Grantees and Subscribers ............................................ 45 7.11 Complaint Log ....................................................................................................... 49 7.12 Parental Control ..................................................................................................... 49 7.13 Periodic Subscriber Survey .................................................................................... 49 7.14 Service Area ........................................................................................................... 49 7.15 Customer Service Reporting Requirements ........................................................... 50 7.16 City Monitoring ..................................................................................................... 51 ARTICLE 8. CONSTRUCTION STANDARDS ......................................................................... 46 8.1 Right-of-Way Construction ................................................................................... 46 8.2 Compliance with Laws .......................................................................................... 46 8.3 Minimum Interference ........................................................................................... 47 8.4 Repair of Property .................................................................................................. 47 8.5 Erection of Poles Prohibited .................................................................................. 47 8.6 Reservations of Street Rights ................................................................................. 48 8.7 Underground Installation ....................................................................................... 54 8.8 Conduit ....................................................................................................................... 8.9 Clearing Poles and Cables ..................................................................................... 55 8.10 Moving Facilities ................................................................................................... 56 8.11 Work Performed by Others .................................................................................... 56 8.12 Duty to Grantee ...................................................................................................... 56 ARTICLE 9. 9.1 9.2 9.3 9.4 9.5 9.6 ARTICLE 10. OPERATION AND MAINTENANCE .................................................................. 57 Open Books and Records ....................................................................................... 57 Communications with Regulatory Agencies ......................................................... 57 Annual Reports ...................................................................................................... 58 Additional Reports ................................................................................................. 59 Strand-and-Trench Maps ........................................................................................ 59 Service Contract and Subscriber Information ........................................................ 59 GENERAL FINANCIAL AND INSURANCE PROVISIONS ........................... 54 10.1 Franchise Fee ......................................................................................................... 54 iii MASTER CABLE SERVICES REGULATORY ORDiNANCE 10.2 Security Ftmd ......................................................................................................... 56 10.3 Penalties Procedure ................................................................................................ 56 10.4 Bonds, Indemnification, and Insurance .................................................................. 64 ARTICLE 11. REVOCATION ..................................................................................................... 64 11.1 Grounds for Revocation ......................................................................................... 64 11.2 Procedure ............................................................................................................... 65 ARTICLE 12. FORECLOSURE, RECEIVERSHIP AND ABANDONMENT .......................... 66 12.1 Foreclosure ............................................................................................................. 66 12.2 Receivership ........................................................................................................... 66 ARTICLE 13. PURCHASE OF SYSTEM ................................................................................... 67 13.1 Grantor's Right to Purchase System upon Receipt By Grantee of a Bona Fide Offer ....................................................................................................................... 67 13.2 Purchase By Grantor Upon Termination of Franchise Term or Revocation of Franchise ................................................................................................................ 67 ARTICLE 14. SALE OR TRANSFER ......................................................................................... 68 14.1 Sale or Transfer of Franchise ................................................................................. 68 ARTICLE 15. RIGHTS OF iNDIVIDUALS PROTECTED ....................................................... 70 15.1 Discriminatory Practices Prohibited ...................................................................... 70 15.2 Subscriber Privacy ................................................................................................. 70 ARTICLE 16. MISCELLANEOUS PROVISIONS ..................................................................... 70 16.1 Rate Regulation ...................................................................................................... 70 16.2 Rights Reserved to Grantor .................................................................................... 64 16.3 Administration of Franchise .................................................................................. 65 16.4 Nonenforcement by the City .................................................................................. 65 16.5 Goveming Law and Choice of Forum ................................................................... 65 16.6 Severability ............................................................................................................ 65 16.7 Publication of Notices ............................................................................................ 72 iv MASI'ER CABLE SERVICES REGULATORY ORDINANCE 1.I ORDINANCE NO. ARTICLE 1. STATEMENT OF 1NTENT AND PURPOSE Statement of Intent and Purpose A. The City of Corpus Christi, Texas, pursuant to applicable federal and State law, is authorized to grant one or more nonexclusive Franchises to construct, operate, maintain, and reconstruct Cable Systems within the City. B. The City Council of Corpus Christi finds that Cable Service has become an integral part of its citizens' lives, and that evolving Cable Systems have the potential to play an even more dramatic role in the future, providing great benefits and advanced capabilities to the City. At the same time, The Council further finds that the public convenience, safety, and general welfare can best be served by establishing regulatory powers that are vested in the City or such Persons as the City designates. C. In order to ensure that the City and its Residents receive state of the art Cable Services and capabilities as this technology further evolves, all Franchises granted pursuant to this Ordinance will be subject to periodic review and modifications to keep current with changing law, technology, and Services. It is the intent of this Ordinance to help ensure that local cable operators provide the best possible Cable Service to Residents of the City and any Franchises issued pursuant to this Ordinance shall be deemed to include this finding as an integral part thereof. D. The Council further finds that on-going industry consolidation could result in less local accountability, and that therefore stringent customer service standards, including liquidated damage provisions, may be the only practical means of 5 MASTER CABLE SERVICES REGULATORY ORDINANCE ensuring compliance and approximating the costs of Franchise Agreement non- compliance to the City and its Residents. ARTICLE 2. SHORT TITLE This Ordinance shall be known and may be cited as the "City of Corpus Christi Master Cable Services Regulatory Ordinance." ARTICLE 3. DEFiNITIONS For the purpose of this Ordinance, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number. The words "shall" and "will" are mandatory and "may" is permissive. Words not defined shall be given their common and ordinary meaning. 3.1 "Basic Cable 3.2 Service" means any Cable Service tier that includes the lawful retransmission of local television broadcast signals and any Public, Educational, and Governmental Access programming required by this Ordinance or a Franchise Agreement to be carried on the basic tier. Basic Cable Service as defined herein shall be consistent with 47 U.S.C. § 543(b)(7) (1997). "Cable Act" means the Cable Communications Policy Act of 1984, Pub. L. No. 98-549, (codified at 47 U.S.C. §§ 521-611 (1982 & Supp. V. 1987) as amended by the Cable Television Consumer Protection and Competition Act of 1992, Pub. L. No. 102-385, and the Telecommunications Act of 1996, Pub. L. No. 104-104 (1996) as may, from time to time, be amended. 6 MASTER CABLE SERVICES REGULATORY ORDINANCE 3.3 3.4 3.5 "Cable Internet Service" means any Cable Service offered by a Grantee whereby Persons receive access to the Internet through the Cable System. "Cable Service" or "Service" means: A. The one-way transmission to subscribers of (i) video programming, (ii) other programming service; or (iii) other Services agreed to in a Franchise Agreement unless lawfully determined not to be a Cable Service. B. Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service; and C. For purposes of this Ordinance, unless determined otherwise under applicable federal law, Cable Internet Service shall be considered Cable Service. "Cable Television System" or "Cable System" means a facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Service to multiple Subscribers within the Franchise Area, but such term does not include: A. A facility that serves only to retransmit the television signals of one or more television broadcast stations; B. A facility that serves Subscribers without using any public Right-of-Way; or C. A facility of a common carrier which is subject, in whole or in part, to the provisions of 47 U.S.C. § § 201-226, except that such facility shall be considered a Cable System to the extent such facility, whether on a common carrier basis or otherwise, is used in the transmission of video programming directly to Subscribers. 7 MASTER CABLE SERVICES REGULATORY ORDINANCE ] 3.6 "Capital Contribution" means a contribution provided by a Grantee as determined in a Franchise Agreement that may at the City's discretion be utilized for the Capital Costs of the municipal access channel facilities, or to help defray the costs of an I-Net. 3.7 "Capital Costs" means costs associated with the purchase of assets, products or other resources that are designed to provide Service for more than one year. 3.8 "Channel" means a portion of the electromagnetic spectrum [or fiber optic capacity] that is capable of carrying one standard six (6) megahertz video signal, in either analog or digital form. Consistent with future changes in technology and/or applicable law, the parties may mutually agree to a different definition in an individual Franchise Agreement. 3.9 "City" means the City of Corpus Christi, Texas. 3.10 "Class IV Cable Communications Channel" means a signaling path provided by a Cable System to transmit signals of any type from a Subscriber terminal to another point in the System. 3.11 "Community Access Corporation" or "CAC" means a non-profit Access Corporation serving the City, its assignees or delegees, or any other entity designated by the Grantor whose duties shall include the financing, management, and programming of Public and Educational Access, and whatever other duties with respect to the PEG Access Channels that the Grantor from time to time may delegate. 3.12 "Complaint" means any ~ra!, written or electronic inquiry, allegation, or assertion, made by a Person regarding Service, which requires corrective action on the part of the Grantee. 3.13 "Converter" means an electronic device that converts signals to a frequency not susceptible to interference within the television receiver of a Subscriber and, through the 8 MASTER CABLE SERVICES REGULATORY ORDINANCE use of an appropriate Channel selector, permits a Subscriber to view all authorized Subscriber signals delivered at designated converter dial locations. 3.14 "Council" means the City Council of Corpus Christi, Texas. 3.15 "Direct Incremental Costs" means the costs actually incurred by Grantee in meeting an obligation under its Franchise which Grantee would not otherwise have incurred in order to either operate and conduct the business of its Cable System or meet another obligation of the Franchise. 3.16 "Drop" means the cable or cables that connect users of the System to the distribution system in order to receive Service. 3.17 "Educational Access Channels" means Channels specially designated for Non- Commercial educational access progranuning use. 3.18 "Effective Date" means the date a Franchise becomes effective in accordance with the Franchise and the roles and procedures of the City. 3.19 "FCC" means the Federal Communications Commission or a designated representative. 3.20 "Franchise" means the rights and obligations extended by the City to a Person to own, lease, construct, maintain, or operate a Cable System in the Right-of-Way within the Franchise Area for the purpose of providing Cable Services. Any such authorization, in whatever form granted, shall not mean or include: (i) any other permit or authorization required for the privilege of transacting and carrying on a business within the City required by the ordinances and laws of the City; (ii) any permit, agreement, or authorization required in connection with operations in the Right-of-Way including, without limitation, permits and agreements for placing devices on or in poles, conduits, or MASTER CABLE SERVICES REGULATORY ORDINANCE other structures, whether owned by the City or a private entity, or for excavating or performing other work in or along the Right-of-Way. 3.21 "Franchise Agreement" means a Franchise granted pursuant to this Ordinance. 3.22 "Franchise Area" means the entire geographic area within the City as it is now constituted or may in the future be constituted. 3.23 "Franchise Fee" means any tax, fee, or assessment of any kind imposed by the City or other governmental entity on a Grantee solely because of its status and activities as such. The term "Franchise Fee" does not include: (i) any tax, fee, or assessment of general applicability (including any such tax, fee, or assessment imposed on both utilities and cable operators or their Services but not including a tax, fee, or assessment that is unduly discriminatory against cable operators or cable Subscribers); (ii) capital costs that are required by a Franchise Agreement to be incurred by a Grantee for PEG Access equipment and facilities; (iii) costs associated with the construction and operation of an I- Net; (iv) requirements or charges incidental to the award or enforcement of a Franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, compliance audits, penalties, or liquidated damages; (v) any fee imposed under Title 17 of the United States Code; or (vi) any generally applicable Right-of-Way fee imposed by the City on the Grantee as a telecommunications provider pursuant to Title 9, Chapter 283 of the Texas Local Government Code, or other applicable law. 3.24 "Government Access Channels" means Channels specially designated for non- commercial governmental access programming use. 3.25 "Grantee" means a Person who is granted a Franchise or that Person's lawful successors, transferees, or assignees. 10 MASTER CABLE SERVICES REGULATORY ORDiNANCE 3.26 "Grantor" means the City or its delegates. 3.27 "Gross Revenues" means any revenue derived directly or indirectly by a Grantee from the operation of its Cable System to provide Cable Service, within the Franchise Area, including revenues received by its affiliates, subsidiaries, parent, or any other Person, in which a Grantee has a financial interest of five percent (5%) or more, where such revenue in the ordinary course of business should have been paid to Grantee. By way of illustration and not limitation, this definition would include revenue derived from the sale of Cable System advertising time by an Affiliate of Grantee. Gross Revenues shall include but are not limited to, pay cable fees, installation and reconnection fees, Franchise Fees collected from Subscribers, leased channel access fees, Converter rentals, fees for Cable Internet Service (unless it is determined by applicable law that it is not a Cable Service), home shopping revenues, all Cable service lease payments from the Cable System; payments or other consideration received by the Grantee from programmers for carriage of programming on the Cable System and accounted for as revenue under GAAP; and advertising revenues. The term does not include taxes on Services furnished by a Grantee and imposed directly upon any Subscriber or user by federal, state, or local law and collected by Grantee on behalf of such governmental unit, or amounts collected from subscribers for public, educational and government access. Nor does the term include any revenues earned by the Grantee through the provision of telecommunications services as defined under the Telecommunications Act of 1996. 3.28 "Incumbent Grantee" means a cable operator that has been granted a Franchise by the City prior to the effective date of this Ordinance. 11 [ MASTER CABLE SERVICES REGULATORY ORDINANCE I 3.29 "Institutional Network" or "I-Net" means capacity, fibers or both, from both within the primary cable network and/or separately constructed networks that are dedicated to municipal users or other governmental and educational users as determined by the City Manager or his/her designee for two-way, broadband communications. The 1-Net includes all equipment and maintenance of equipment required to make the capacity available including but not limited to fiber, cable modems, coaxial cable, switching, routing, transmitting and receiving equipment necessary for the use of the network as determined in the individual Franchise Agreement. 3.30 "Institutional Network Services" means the provision of an I-Net by a Grantee to municipal users and other governmental and educational users as determined by the City Manager or his/her designee, pursuant to the terms of a Franchise Agreement for non- commercial applications including but not limited to, two-way dedicated voice, data, video, Interact and telephony channels connecting and interconnecting user facilities; computerized traffic control systems; Supervisory Control and Data Acquisition (SCADA) or automatic meter reading (AMR) systems for municipally-owned utilities; and the intercounection of facilities serving police, fire and other public safety systems. 3.31 "Lockout Device" means a mechanical or electrical accessory to a Subscriber's terminal that inhibits the video or audio portions of a certain program or certain Channel(s) provided by way of a Cable System. 3.32 "Municipal Telecommunications Consent Fee" means a fee assessed on a telecommunications provider for the use of the City's Rights-of-Way pursuant to Title 9, Chapter 283 of the Texas Local Government Code, or other applicable law. 12 MASTER CABLE SERVICES REGULATORY ORDINANCE 3.33 '2qon-Commercial" means Channels or programming that are operated on a not-for-profit basis. 3.34 "Normal Business Hours" means those hours during which most similar businesses in the community are open to serve customers. In all cases, Normal Business Hours must include some evening hours, at least one night per week, and some weekend hours. 3.35 "Normal Operating Conditions" means any and all situations or conditions that are ordinarily within the control of a Grantee, including but not limited to, management or corporate decisions; employee conduct; staffing levels; special promotions; pay-per-view events; rate increases; regular peak or seasonal demand periods; electronic and video equipment; maintenance, repair or upgrade of the Cable System, and any associated computer or software systems. Those conditions that are not within the control of a Grantee include, but are not limited to, natural disasters; civil disturbances; power outages; telephone network outages; and severe or unusual weather conditions. 3.36 "Other Programming Service" means information that a Grantee makes available to all Subscribers generally. 3.37 "Person" means any corporation, partnership, proprietorship, individual, organization, governmental entity or any natural person. 3.38 "Public Access Channels" means Channels specially designated for non-commercial public access progranuning use. 3.39 "Resident" means any Person residing in the City. 3.40 "Right-of-Way" means each of the following which have been dedicated to the public or are hereafter dedicated to the public and maintained under public authority or by others and located within the City, including without limitation the surface and space within, 13 MASTER CABLE SERVICES REGULATORY ORDINANCE above and below any real property in which the City has an interest in law or equity, whether held in fee, or other estate or interest, or as a trustee for the public, including, but not limited to any public street, boulevard, road, highway, freeway, lane, alley, court, sidewalk, parkway, swale, river, tunnel, viaduct, bridge, park, or any other place, area, easements, rights-of-way and similar public property and areas, or real property owned by or under the control of the City. 3.41 "Service Interruption" means the loss of picture or sound on one or more Channels on the System, or the degradation of the picture and/or sound quality on such Channels to the extent that the Subscriber is unable to use the signals, regardless of the cause, for any reason whatsoever. 3.42 "Standard Installation" means any Service installation that can be completed using a Drop of one hundred twenty-five (125) feet or less, unless otherwise specified in the Franchise Agreement. 3.43 "Subscriber" means any Person who or which elects to subscribe for any purpose to Cable Service provided by a Grantee by means of, or in connection with, the Cable System, and whose premises or facilities are physically wired and lawfully activated to receive Cable Service from Grantee's Cable System, including Persons who receive Cable Service without charge according to the terms of the Franchise Agreement. 3.44 "System" means a Grantee's Cable System operated pursuant to a Franchise Agreement within the Franchise Area. 14 MASTER CABLE SERVICES REGULATORY ORDINANCE 4.1 4.2 4.3 ARTICLE 4. FRANCHISE REQUIREMENTS Unlawful to Operate Without a Franchise. It shall be unlawful for any Person to construct, operate or maintain a Cable System or to provide Cable Service in the City without a Franchise. Any such person shall be subject to a fine of $500 per day. The payment of such fine notwithstanding, all such violators shall be subject to all other applicable provisions of this Ordinance, including but not limited to the payment of a Franchise Fee. Franchises Non-Exclusive. Any Franchise granted pursuant to this Ordinance shall be nonexclusive. The Grantor specifically reserves the right to grant, at any time, such additional Franchises for a Cable Television System or any component thereof, to any other Person including itself, as it deems appropriate, subject to applicable federal and State law. Franchises Non-Discriminatory. In the event the City grants more than one Franchise or similar authorization for the construction, operation, or maintenance of any Cable System to a qualified Person in a Franchise Area, the City's policy shall be to grant the Franchises on terms that are non- discriminatory and competitively neutral, provided that nothing herein shall be construed as requiring the use of identical terms or conditions, or limit the enfomeability of conditions that are freely negotiated. 15 MASTER CABLE SERVICES REGULATORY ORDiNANCE ] 4.4 4.5 4.6 Franchise Territory. Any Franchise shall be valid within the entire Franchise Area. Unless a Franchise Agreement specifically states otherwise, every Franchise shall apply to the entire territorial area of the City. Term of the Franchise. A Franchise Agreement shall establish the term of Franchise. A Franchise Agreement may provide for a term of up to fifteen (15) years. Federal, State, and City Jurisdiction. A. This Ordinance shall be construed in a manner consistent with all applicable federal and State laws. B. In the event that the federal or State government discontinues preemption in any area of cable communications over which it currently exercises jurisdiction in such manner as to expand rather than limit municipal regulatory authority, Grantor may, if it so elects, adopt rules and regulations in these areas to the extent permitted by law. C. Grantee's rights are subject to the police powers of the City to adopt and enforce ordinances necessary to the health, safety, and welfare of the public. Grantee shall comply with all applicable general laws and ordinances enacted by the City pursuant to that power. D. The provisions of this Ordinance shall apply to all Franchises granted or renewed after the effective date of this Ordinance. This Ordinance shall also apply to all existing Franchises, to the extent not inconsistent with the terms of any such Franchise or applicable law. In the event of any conflict between the terms and 16 MASTER CABLE SERVICES REGULATORY ORDINANCE 4.7 conditions of a Franchise Agreement and the provisions of this Ordinance, and other generally applicable regulatory ordinances of the City, the specific terms of the Franchise Agreement shall control. A Franchise Agreement (including all of Grantee's particular rights, powers, protections, privileges, immunities and obligations associated therewith) a~ '~'~..~ ........ ~-.~v ~.~.~;~ cn ~:_. ~atc kzrzof) shall constitute a legally binding contract between the City and Grantee, and as such, cannot be amended, modified or changed by the City without the consent of Grantee in any manner whatsoever, whether by ordinance, rule, regulation or otherwise, to impose on Grantee more stringent or burdensome requirements or conditions; provided, however, that nothing herein contained shall preclude the City from the proper exercise of its police powers, or its powers of eminent domain. E. In the event of a change in state or federal law which by its terms would require the City to amend this Ordinance, the parties shall modify the existing Franchise in a mutually agreed upon manner. F. Grantee shall not be relieved of its obligation to comply with any of the provisions of this Ordinance or a Franchise Agreement by reason of any failure of the City to enforce prompt compliance. Rights Reserved To Grantor. A. In addition to any rights specifically reserved to Grantor by this Ordinance or a Franchise Agreement, Grantor reserves to itself every right and power that is required to be reserved by a provision of any other ordinance or under any other Franchise. 17 MASTER CABLE SERVICES REGULATORY ORDINANCE 4.8 B. Grantor shall have the right to waive any provision of this Ordinance or a Franchise Agreement, except those required by federal or State regulation, if the Grantor determines: (1) that it is in the public interest to do so and (2) that the enforcement of such provision will impose an undue hardship on a Grantee or the Subscribers. To be effective, such waiver shall be evidenced by a statement in writing signed by a duly authorized representative of Grantor. Waiver of any provision in one instance shall not be deemed a waiver of such provision subsequent to such instance, nor be deemed a waiver of any other provision of this Ordinance or a Franchise Agreement unless the statement in its final form approved by the City Council so recites. Franchise Agreement. A. Every Grantee shall agree to the terms and provisions of a Franchise Agreement as negotiated between the Grantee and the Grantor. B. In addition to those matters required elsewhere in this Ordinance to be included in the Franchise Agreement, each Franchise Agreement must contain the following express representations by each Grantee: (1) Grantee accepts and agrees to all of the provisions of this Ordinance, as it exists as of the effective date of the Grantee's Franchise Agreement, except as set forth in Section 4.6, and any supplementary specifications as to construction, operation, or maintenance of the System which the City may include in the Franchise Agreement. (2) Grantee has examined all of the provisions of this Ordinance and agrees to the terms and conditions herein. 18 MASTER CABLE SERVICES REGULATORY ORDINANCE J 4.9 (3) Grantee recognizes the right of the City to adopt such additional ~ Ordinances of general applicability as it shall find necessary in the exercise of its police power. Every Franchise Agreement shall contain such further conditions or provisions as may be negotiated between the City and a Grantee, except that no such conditions or provisions shall be such as to conflict with any provisions of state or federal law. In case of any conflict or of any ambiguity between any terms or provisions of a Franchise Agreement and this Ordinance, the provisions of the Franchise Agreement shall control. Initial Franchise Applications. Any Person desiring an initial Franchise for a Cable System shall file an application with the City. A reasonable nonrefundable application fee established by the City shall accompany the application or renewal application. Such application fee shall not be deemed to be "Franchise Fees" within the meaning of Section 622 of the Cable Act (47 U.S.C. § 542), and such payments shall not be deemed to be (i) "payments in kind" or any involuntary payments chargeable against the compensation to be paid to the City by Grantee, or (ii) part of the compensation to be paid to the City by Grantee pursuant to this Ordinance or a Franchise Agreement. An application for an initial Franchise for a Cable Television System shall contain, where applicable: A. A statement as to the proposed Franchise Area; B. Resume of prior history of applicant, including the legal, technical, and financial expertise of applicant in the cable television field; 19 MASTER CABLE SERVICES REGULATORY ORDINANCE C. List of the partners, general and limited, of the applicant, if a partnership, or the pementage of stock owned or controlled by each shareholder, if a corporation; D. List of officers, directors, and managing employees of applicant, together with a description of the background of each such Person; E. The names and addresses of any parent or subsidiary of applicant or any other business entity owning or controlling applicant in whole or in part, or owned or controlled in whole or in part by applicant; F. A current financial statement of applicant verified by a CPA audit or otherwise certified to be true, complete, and correct to the reasonable satisfaction of the City; G.Proposed construction and Service schedule; and H. Any additional information that the City may require for the administration of the Franchise. 4.10 Consideration of Initial Applications. A. Upon receipt of any application and application fee for an initial Franchise, the City Administrator shall prepare a report and make his or her recommendations respecting such application to the City Council. B. A public hearing may be held prior to any initial Franchise grant, at a time and date approved by the Council. Within thirty (30) days after the close of the hearing, the Council shall make a decision based upon the evidence received at the hearing as to whether or not the Franchise(s) should be granted, and, if granted, subject to what conditions. C. All applicants for an initial Franchise grant shall submit an application fee of twenty thousand dollars ($20,000) to compensate the City for its costs in reviewing, preparing 20 MAS'I'ER CABLE SERVICES REGULATORY ORDINANCE 4.11 4.12 and awarding a Franchise, including the costs of outside consultants. Upon grant of a Franchise the City may request the payment of an additional fee to the extent that the reasonable costs of the franchise review and negotiation process exceed the initial application fee amount. Consistent with the Cable Act, all such fees shall not constitute or be credited towards a Grantee's Franchise Fee obligations. Franchise Renewal. Franchise renewals shall be in accordance with applicable law including, but not necessarily limited to, the Cable Communications Policy Act of 1984, as amended. Grantor and a Grantee, by mutual consent, may enter into renewal negotiations at any time during the term of the Franchise. ~ .... ~-: .......... ~ m~j, n~^ :c ...... ~'~+~"':n~ ehz:-,gez +~ ~ho ^ ....... ' ~'~" .... *:"'*~ ~ nzw Franzh!zz ^ ....... * The City reserves the right, unless prohibited by applicable law, to require a Grantee to pay the reasonable costs of the franchise renewal and negotiation process. Grant of Additional Franchise and Competing Service. A. Since competing or overlapping Franchises may have an adverse impact on the public Rights-Of-Way, on the quality and availability of Services to the public and may adversely affect an existing operator's ability to continue to provide the Services and facilities it is presently providing under a Franchise, in granting a franchise in an area where another Grantee is operating the City may consider the potential impact which the grant of an additional Franchise may have on the community. This determination may be made simultaneously with the adoption of the Grantee's Franchise Agreement. In considering whether to grant one or 21 [ MASTER CABLE SERVICES REGULATORY ORDINANCE j more additional Franchises, the City shall specifically consider, and address in a written report or in provisions of the Franchise Agreement, the following issues: (1) The positive and/or negative impact of an additional Franchise on the community. (2) The ability and willingness of the specific applicant in question to provide Cable Services to the entire Franchise Area which is served by the existing cable operator. The purpose of this subsection is to ensure that any competition which may occur among Grantees will be on terms which when taken as a whole do not give a competitive advantage to one Grantee over another. (3) The amount of time it will take the applicant to complete construction of the proposed System and activate Service in the entire Franchise Area; and, whether the applicant can complete construction and activation of its System in a timely manner. (4) The financial capabilities of the applicant and its guaranteed commitment to make the necessary investment to erect, maintain, and operate the proposed Cable System for the duration of the Franchise term. In order to ensure that any prospective Grantee does have the requisite current financial capabilities, the City may request equity and debt financing commitment letters, current audited financial statements, bonds, letters of credit, or other documentation to demonstrate to the City's satisfaction that the requisite funds to construct and operate the proposed System are available. 22 MASTER CABLE SERVICES REGULATORY ORDINANCE 4.13 (5) The quality and technical reliability of the proposed System, based upon the applicant's plan of construction and the method of distribution of signals, and the applicant's technical qualifications to construct and operate such System. (6) The experience of the applicant in the erection, maintenance, and operation of a Cable Television System. (7) The capacity of the public Rights-Of-Way to accommodate one or more additional Cable Systems and the potential disruption of those public Rights-Of-Way and private property that may occur if one or more additional Franchises are granted. (8) The disruption of existing Cable Service and the potential that the proposed Franchise would adversely affect the Residents of the City. (9) The likelihood and ability of the applicant to continue to provide competing Cable Service to Subscribers within the entire Franchise Area for the duration of the Franchise. (10) Such other information as the City may deem appropriate to be considered prior to granting any competing or overlapping Franchise. Permits for Non-Franchised Entities. A. The City may issue a license, easement, or other permit to a person other than the Grantee to permit that person to traverse any portion of the Grantee's Franchise Area within the City in order to provide Service outside, but not within the City. Such license or easement, absent a grant of a Franchise in accordance with this Ordinance, shall not authorize nor permit said person to provide Cable Service of 23 MASTER CABLE SERVICES REGULATORY ORDINANCE any type to any home or place of business within the City nor render any other Service within the City. B. Such license, easement or permit shall require the payment of fee for occupancy of the public Right Of Way to the extent permitted by applicable law. Review for Competition A. The City recognizes that the cable television and telecommunications industries are in a period of convergence and that the technologies and services provided by these industries are rapidly changing, and that the Telecommunications Act of 1996 promoted and encouraged competition between and among these formally discrete industries. At this time it is premature to know fully the extent to which there will be changes in law, technology or services that may impact entities that have been or may be granted Franchises or licenses to use the City's Rights-Of- Way. It is the desire of the City to be a communications friendly city, that encourages the development of competitive advanced communications capabilities for the benefit of all its citizens, for this reason the regulatory ordinances and Franchises of the City should not impede or restrict the fair opportunity to compete, but rather are intended to provide uniform and consistent requirements for all similarly situated providers. B. Consistent with the above findings, the City Manager or designate, is authorized to undertake an on-going evaluation and study of these changing and emerging technologies and services, as well as legal requirements relating to them, and upon request by the City, submit a report to the City regarding the impact of this 4.14 24 MASTER CABLE SERVICES REGULATORY ORDINANCE Ordinance and its impact on existing providers within the City and the development of competition. 5.1 5.2 ARTICLE 5. DESIGN PROVISIONS System Design. A. Every Grantee shall offer Service that meets the current and future needs of the City. The Franchise Agreement shall incorporate a description of the Grantee's proposal including the general design and capabilities of the System to identify for the City how the System will meet the current and future Cable needs of the City. B. ~ The Franchise Agreement shall include provisions to provide for a "periodic review" between the City and a Grantee to evaluate changes in law, technology, or service, and reasonable procedures for mutually agreed upon modifications to the Franchise Agreement to incorporate changes identified as desirable or necessary as a result of any such periodic review. The System. Every System shall pass by every single-family dwelling unit and multiple-family dwelling unit within the Franchise Area in accordance with line extension policies set forth in the applicable Franchise Agreement. Service shall be provided to Subscribers in accordance with the schedules and line extension policies specified in the applicable Franchise Agreement. 25 MASTER CABLE SERVICES REGULATORY ORDINANCE 5.3 5.4 5.5 5.6 Drops to Public Buildings. A. Every Grantee shall provide installation of at least one (1) cable Drop, and one (1) outlet, provide monthly Basic Cable Service, without charge, to public buildings as specified by the Franchise Agreement, :---~ww.. ~': .... ~c ,~.v ~st~nce ~.^c ,~_v dr~p. B. All such Cable Service outlets shall not be utilized for commercial purposes. The City shall take reasonable precautions to prevent any use of the Grantee's Cable System in any inappropriate manner or that may result in loss or damage to the System. Users of such outlets shall hold the Grantee harmless from any and all liability or claims arising out of their use of such outlets, other than for those claims arising out of improper installation or faulty equipment. Use of Grantee Facilities. The Franchise Agreement shall incorporate provisions regarding the City's use of a Grantee's poles, ducts and conduits, on mutually agreed upon terms. Upgrade of System. Every Grantee shall upgrade its System (herein referred to as the "System Upgrade"), if required, as set forth in its respective Franchise Agreement. Non-Discriminatory Access To Cable System. A. The City and its Residents have an increasing need and desire for broadband access to the Internet and other on-line Services. B. In order to protect competition and provide for the future needs of the City, unless otherwise required by applicable state or federal law, the Grantor reserves any 26 MASIER CABLE SERVICES REGULATORY ORDINANCE legal right it now has, or may in the future have, to implement an "open access" requirement to ensure that a Grantee will be required to provide non- discriminatory access to its Cable System to providers of Internet Access Service, irrespective of whether such providers are affiliated with the Grantee. A Grantee may be required, if legally permissible, to implement "open access" requirements to its Cable System to non-affiliated Intemet Access Service providers if the Grantee or its affiliates or subsidiaries under its control determine to do so in a similar manner in other Cable Systems owned and operated by the Grantee or its affiliates or subsidiaries under its control. The foregoing notwithstanding, it is recognized that "open access" and the legal authority of local franchise authorities to compel such access is under review, and the potential impact on Subscribers is not yet fully known. Accordingly, Grantees will not be required to provide non-discriminatory access to their Cable System until further review by the Grantor and pending clarification of the City's legal authority, as well as an evaluation by the City of the merits and policy considerations related to this issue. By adopting this Ordinance, neither the City nor any Grantee has waived any rights, obligations, claims, defenses or remedies regarding the city's authority to impose such conditions. Prior to the enactment of any such requirement, a Grantee will be provided with reasonable notice and an opportunity to be heard, including the right to present evidence on any findings to be made by the City with respect to the need for such a requirement. 27 MASTER CABLE SERVICES REGULATORY ORDINANCE [ 6.1 6.2 ARTICLE 6. INSTITUTIONAL NETWORK, AND PUBLIC EDUCATIONAL AND GOVERNMENTAL ACCESS OR "PEG ACCESS" In stitutional Network ,. ~ vvw~ ..... Cka.~m~l r. Every Grantee shall, to the extent provided in its Franchise Agreement, make available capacity from its network or dedicated fibers, or provide other support for an Institutional Network for governmental and educational use. To the extent that a Grantee is obligated to provide such support pursuant to its Franchise Agreement, such obligation will be implemented in a competitively neutral manner, on a per Subscriber basis with respect to any other Franchises granted after the adoption of this Ordinance. PEG Access. Every Grantee shall provide a channel or channels, bandwidth capacity, Service, and funding, for separate Public, Educational and Government Access Channels, as specified in their Franchise Agreement. All such PEG Access Channels shall be available to all Subscribers as part of their Basic Cable Service. Every Grantee shall make a good faith effort to negotiate with other cable providers in the City and the surrounding area to interconnect its network where feasible in order to facilitate any requirements with respect to shared access programming on a local and regional basis. The City reserves the right to negotiate Franchise Agreement provisions with respect to the uniform cablecasting of PEG Access programming throughout the entire City without respect to the specific Cable operator. Oversight and administration of the PEG Access channels shall be set f~ ".n ~* Fr~z~ig~ Agreement responsibility of the City and each Grantee shall cooperate and coordinate with City to ensure that all PEG Access programming shall be accomplished in accordance with the terms of this Ordinance, including Exhibit 28 MASTER CABLE SERVICES REGULATORY ORDINANCE j A, and to the extent not inconsistent with this Ordinance, the terms of a Franchise Agreement. The City reserves the right to designate a Community Access Corporation or similar entity to administer one or more of the Access Channels. ~ ........... ........ u;~u~., qua!it3' ~';~ ....... ~" 'hz '~':"'*;~-'~' xT~+ ..... ,. ~..~ ^ .....r,u ...., ......c to a.- r,;+.. +~. ..... *. ..... ~.~ ...~ .c. r: ....h?~ * ....... * Eve-D' r. ......;;'il! mznitoi ~TICLE 7. TEC~ICAL STANDA~S AND CUSTOMER SERVICE P~C~CES 7.1 General Technical Standards and Customer Service Practices A. This Ordinance incorporates technical standards and establishes customer service practices that a Grantee must satisfy. In addition, a Grantee shall satisfy any additional or stricter requirements established by FCC regulations, or other federal, state or local law or regulation that may be adopted or amended from time to time. 29 MASTER CABLE SERVICES REGULATORY ORDINANCE B. A Grantee shall maintain such equipment and keep such records as are required to enable the Grantor to determine whether the Grantee is in compliance with all standards required by these regulations and other applicable laws. 7.2 Technical Standards. The technical standards used in the operation of a System shall comply, at a minimum, with the technical standards promulgated by the FCC relating to Cable Systems pursuant to the FCC's rules and regulations and found in Title 47, Sections 76.601 to 76.617, as may be amended or modified from time to time, which regulations are expressly incorporated herein by reference. The results of any tests required by the FCC, or a Franchise Agreement shall be made available to the City within thirty (30) days of written request. 7.3 Test and Compliance Procedure. Tests for a System shall be performed periodically in a manner so as to conform with FCC specifications. Upon request, the tests may be witnessed by representatives of the City and written test reports shall be made available to the City. If any test locations fail to meet the performance standards, the Grantee shall be required to indicate what corrective measures have been taken and shall have the site retested. 7.4 Emergency Requirements. Each Grantee must provide emergency alert override capabilities in a manner consistent with the FCC's emergency alert system ("EAS") rules and consistent with any local State ~':a~ar r~gianal emergency alert council ("LEPC") syst~n plans adopted in response to the FCC's EAS rules that are applicable to the Franchise Area. 30 MASTER CABLE SERVICES REGULATORY ORDINANCE 7.5 Pro ammin Decisions. Each Grantee shall provide programming from each of the broad programming categories identified in its Franchise Agreement. All programming decisions remain within the sole discretion of each Grantee provided that each Grantee complies with federal law regarding notice to Grantor and Subscribers prior to any Channel additions, deletions, or realignments, and further subject to the Grantee's signal carriage obligations pursuant to 47 U.S.C. §§ 531-536, as may be amended and subject to the City's rights pursuant to 47 U.S.C. § 545, as may be amended. Grantor may require as part of a Franchise Agreement that a Grantee conduct and disclose the results of programming surveys, no more frequently than annually, at the Grantee's sole expense to obtain input on programming decisions from Subscribers in order to ensure that the Grantee meets the City's Cable- related needs and interests. 7.6 Cable System Office Hours and Telephone Availability. A. Every Grantee shall maintain a customer service office within the City, which shall include a place where subscribers may pay their bills, pick up and return converter boxes and comparable items and receive information on the Grantee and its services. Such service office shall be open during Normal Business Hours, and no less than nine (9) hours per day on weekdays, including some evening hours, and four (4) hours on Saturdays. Every Grantee shall also maintain a publicly listed toll-free or local telephone line that is available to Subscribers twenty-four (24) hours a day, seven (7) days a week. The local or toll-free numbers shall be publicly listed. 31 MASTER CABLE SERVICES REGULATORY ORDINANCE Every Grantee shall have trained representatives on hand for walk-in Subscriber visits and available to respond to Subscriber telephone inquiries during Normal Business Hours. The term "trained representatives" shall mean employees of the Grantee who have the authority and capability while speaking with a subscriber to, among other things, answer billing questions, initiate timely adjustment of -w-o- balls, and schedule service and installation calls. ..... ~---~ ...... -~ ..................... If requested the Subscr er, ~ local personnel must use their best efforts to respond to Subscriber requests to speak with a "manager or supervisor" within · .... ~, ~ ....... uro a reasonable time of the request under normal operating conditions, during normal business hours and supervisory personnel will respond no later than the following business day. Af[er Normal Business Hours, the telephone access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained representative on the next business day. The Grantee shall prepare and distribute to the Grantor a calendar of holidays and business days on which the operator will be closed. Grantee shall also provide notice to Subscribers through answering service/machine, voice mail messages, bill messages, or through its cable system regarding hours or dates when its offices will not be open. Such notice shall be provided during the five (5) days 32 MASTER CABLE SERVICES REGULATORY ORDINANCE prior to the date the office will be closed. In addition, during such "closed" periods, the Grantee shall provide voice messages and notice on its premises of the emergency and after hours contact numbers. Under Normal Operating Conditions, telephone answer time by a customer service representative or automated response trait, including wait time, shall not exceed thirty (30) additional seconds. If a call must be placed on hold or transferred, the time for response by a human customer service representative sknd! should not exceed sixty (60) seconds. Under Normal Operating Conditions, these standards shall be met no less then ninety percent (90%) of the time measured daily averaged quarterly, and reported at least semi-annually, upon reasonable request. Under Normal Operating Conditions, Grantee shall establish an inbound telephone system upon which Subscribers shall not receive a busy signal more than three percent (3%) of the time. Abandonment rates for incoming calls may not exceed five percent (5%). The period of three (3) hours following major outages (more than 25% of the Subscribers) or periods of natural disasters are not included in the response requirements above, provided that when feasible voice-mail information about the outage has been posted on phone answering equipment and/or the System bulletin board (assuming outage is not City-wide) and the City has been notified that an outage was in progress. Actions of the Grantee which lead to a high volume of calls (such as incorrect bills, rate increases, late bills or fees, changes in Service, plant maintenance, 33 MASTER CABLE SERVICES REGULATORY ORDINANCE missed appointments, etc.) are considered part of Normal Operating Conditions and are therefore not exempt from compliance with this Ordinance. Grantee shall respond to all Subscriber or user inquiries or complaints within a reasonable time and where a written complaint has been submitted within seven (7) calendar days of the receipt of inquiry or complaint, except to the extent a more stringent standard is set forth for specific types of activities, inquiries or complaints herein or in the Franchise Agreement.(-1--)"Response" to the inquiry or complaint shall include correction of bills, completion of service calls or installations, written responses to Subscriber correspondence, correction of problems, provision of working converters, and requested changes in program Services. The Grantee is required to provide documentation of compliance with the requirements of this Section. On a semi-annual basis, the Grantee will provide upon reasonable request the Grantor with reports for hold time, busy signals, and abandonment rate. Upon written request the Grantee and the Grantor will meet by the twentieth (20th) of the month following such semi-annual intervals in order for the Grantee to submit quarterly phone statistics and to explain the report for the period. If such information is not available, a detailed written explanation as to why such information is not available and a date certain upon which such information will be available, shall be provided by the Grantee. The Grantor may allow periods of excused non-compliance if the Grantee can provide reasonable documentation that these periods of non-compliance were not within Normal Operating Conditions. 34 MASTER CABLE SERVICES REGULATORY ORDINANCE 7.7 (1) The Grantee will be deemed in compliance if: (a) During a semi-annual period each criterion has been met or exceeded; or (b) If each criterion has been met or exceeded during four (4) months within the semi-annual period. (2) Should the Grantee be found to be in non-compliance, the Grantor shall notify the Grantee in writing and specify the basis for the finding. Upon notification, the Grantee shall have thirty (30) days to cure such non- compliance. (3) If the Grantee, based upon the available monthly data, fails to cure the non-compliance within the thirty (30) day period, the Grantor may commence enforcement procedures as described in a Franchise M. The Grantee is encouraged to maintain a customer service home page on the Internet where customers can obtain information. Service Calls and Installations. Under Normal Operating Conditions, each of the following standards must be met no less than ninety-five percent (95%) of the time as measured on a quarterly basis: A. Unless otherwise requested by the Subscriber, a Grantee shall perform service calls, installations, and requested changes in Service -~ upgrades, downgrades, equipment changes, disconnections during normal business hours. Disconnections for non-payment may only be performed dunng ......... ~,.~: .... hc'-~r: hours the business office is open. 35 MASTER CABLE SERVICES REGULATORY ORDINANCE B. At the time an appointment is scheduled, the Grantee shall inform the Subscriber of Service scheduling and rescheduling procedures, and/or required payments. .......................... utl ~ ~.~e appoin{men{ window ~ema~ves for S{~d~d Installations, Se~e calls, ~d other installation activities, will be wi~in a m~im~ fo~ (~) ho~ time block d~ng No~al Business Ho~s. Or~ees may schedule Se~iee ~alls activities outs~d~ of No~ Bus,ness Ho~s for ~e express conve~ence of a Subscriber, if so r~ques~d. D. ~tee shall m~e ~s bes~ effo~s to meet all scheduled subscriber appointments. .................. j ¥ .................... tq.~ ........ B_~. ~.. If a Grantee's representative is runpJng late flor an appointment with a Subscriber and will not be able to keep the appointment as scheduled, the Subscriber must be 36 MASTER CABLE SERVICES REGULATORY ORDINANCE contacted, and if the appointment must be rescheduled, it shall be rescheduled to the earliest available time that is convenient for the Subscriber. ........... ., v ................................ a~c ntment ..... ~ .... · ..... ;6, th ~ F. Appoin~ents may not be c~celed or rescheduled ~til field perso~el of ~e Gr~tee m~e eve~ reasonable effo~ to veri~ that the Subschber or o~er au~orized ad~t is not at ~e address for ~e appoin~ent, including ~e following actions: (1) ~ock, ~d use the doorbell to ~e~ the subscriber; ~or (2) Look in the ~ont or backy~d ~ long as such action c~ be accomplished Mthout ~esp~sing on the Subscriber's prope~, ~d wi~out subjecting the Gr~tee's representative to physic~ d~ger (e.g., dogs). ~. ~y vehicle used for the installation, construction, mainten~ce, or repair of a Cable System shall be~ ~e identification of the contractor or ~e applicable Gr~tee in a conspicuous place ~d m~er. H.~Reco~ections due to e~oneous disco~ection based on billing or tec~ical e~ors must be completed at no ch~ge Mthin ~enty-fo~ (24) ho~s of notification by ~e affected Subscriber. I.~Reco~ections a~er a disco~ection a~fibuted to non-payment of bills will be scheduled in accord~ce M~ ~e Gr~tee's regul~ business scheduling practice. 37 MASTER CABLE SERVICES REGULATORY ORDINANCE 7.8 J. ~. Installations or reconnections may not be considered completed until all ordered, upgraded, or reconnected Services, are in full working order; and Subscribers may only be billed for Services actually received. K. M~. A Subscriber's preference as to the point of entry into a residence shall be observed whenever feasible. Runs in building interiors shall be as unobtrusive as possible and outlets shall be located for the convenience of the Subscriber where technically reasonable. The Grantee shall use due care in the process of installation and shall repair any damage to the Subscriber's property caused by installation work. Such restoration shall be undertaken as soon as possible after the damage is incurred, shall be subject to subscriber approval of the corrective action, and Grantee shall use its best efforts to complete the corrective action within no more than thirty (30) days after the damage is incurred. Should such restoration not be corrected within thirty (30) days, the Grantee shall notify the Subscriber as to the cause for the delay and the date when such action shall be completed. Repairs and Interruptions A. Excluding conditions beyond the control of the Grantee, every Grantee will begin working on Service Interruptions and outages within a reasonable timeframe but in no event later than twenty-four (24) hours after the Service Interruption becomes known. Every Grantee must begin actions to correct other Service problems on the business day following notification of such Service problems. (1) Any reports of "no picture/no soand" on the Services must be responded to and renaired within * ..... ~,, c ~- .................... ., .v- (2'0 thirty-six (36) hours of such report, 38 MASTER CABLE SERVICES REGULATORY ORDINANCE including arrival of another Service technician qualified to repair the problem if the first dispatched technician cannot. (2) Work not requiring the Operator to enter Subscriber premises (or property) shall not require the Subscriber to be available for an appointment and shall not be delayed on account of the Grantee's inability to arrange an appointment with the Subscriber. Work on all other requests for Service other than "no picture/no sound"out-of- service requests must begin by the next business day after notification of the problem and must ordinarily be completed within seventy-two (72) hours of the initial request. If for reasons beyond the Grantee% control a longer time for the completion of such repairs is necessitated, the Grantee shall exercise all due diligence to complete the work in the shortest period of time possible. :F-he4aek-~ Outside repairs to cable plant which cannot be made by the initial Service technician dispatched, shall be re-scheduled within twenty-four (24) hours of the originally scheduled Service call except for those circumstances that are beyond the Grantee's control. The Subscriber does not need to be home for outside plant and line repairs. A Grantee may intentionally interrupt Service only for good cause and for the shortest time possible, including interruption for system upgrade, maintenance and repair. Routine maintenance requiring Service Interuptions shall occur at times that affect the fewest number of Subscribers, generally between 12:00 A.M. 39 MASTER CABLE SERVICES REGULATORY ORDINANCE and 6:00 A.M, subject to the safety needs of Grantee's employees. The Grantee shall post z;'zxid0 a crawling message on one or more of the System's Basic Service Channels nct'~::: ~n *~: System's Cka~nz!-~ to advise Subscribers in advance of planned Service Interruptions. To the extent that specific neighborhoods will be affected by a planned outage, such as during an upgrade, the Grantee shall to the extent practical provide advance notice through telephone calls and/or door hangers. A Grantee shall provide a credit for one day's Service for each Service Interruption exceeding four (4) hours in any twenty-four (24) hour period, unless it is demonstrated that the Subscriber caused the outage, or the outage was planned as part of an upgrade or other work that occurred between the hours of 12:00 A.M. and 6:00 A.M., of which the City and the Subscriber received appropriate prior notification ' t~ ) - Technicians that are employed by a Grantee and capable of performing Service related emergency repairs and maintenance must be available twenty-four (24) hours a day, including weekends and holidays. No charge shall be made to a Subscriber for any Service call relating to Grantee owned and Grantee maintained equipment after the initial installation of Cable Service unless the problem giving rise to the Service request can be demonstrated by Grantee to have been: 40 MASTER CABLE SERVICES REGULATORY ORDINANCE 7.9 1. Caused by the negligence or malicious destruction of cable equipment by the Subscriber; or 2. A problem established as having been non-cable in origin. H. An "Identified Outage" is construed as reports of no picture/no sound for the Cable Service from five percent (5%) or more Subscribers served by the same node within twenty (20) minutes of each other. I. Cable drop lines, cable trunk lines, or any other type of outside wiring that comprise part of the Grantee's Cable System that are located underground, shall be placed in such locations pursuant to City Code, and the surrounding ground shall be restored as close as is practical to its condition immediately prior to such underground construction activity within ......... ~.~.~ r,..~ ....... ., .... ~,-~ one hundred and twenty (120) hours afier connection to the Cable System. Except for the Grantee's maintenance facilities, no cable drop line, cable trunk line, or any other type of outside wiring shall be permitted to lay upon the ground within the City, except for the express purpose of being immediately connected to the Cable System of the Grantee. The requirements of this subsection shall apply to all installation, reinstallation, Service or repair commenced by the Grantee within the City during normal operating conditions. Disconnections, Downgrades and Refunds A. A Grantee shall not terminate residential Service for non-payment of a delinquent account unless the Grantee provides initial notice of the delinquency and impending termination at least fourteen (14) calendar days prior to the proposed termination. The Notice shall be mailed, postage prepaid, to the Subscriber to 41 MASTER CABLE SERVICES REGULATORY ORDINANCE whom the Service is billed. This section does not apply to Subscribers disconnected due to insufficient funds. The notice of delinquency and impending termination may be part of a billing statement, provided that the message is in bold or large type or other similar manner designed to bring the information to the Subscriber's attention. No Subscriber may be disconnected for non-payment if payment of outstanding balances is made before the scheduled date for disconnection, up to and including the last business day before the scheduled disconnection. Service terminated without good cause must be restored without charge for the Service restoration. Good cause includes, but is not limited to, signal leakage, failure to pay, payment by check for which there are insufficient funds, theft of Service, abuse of equipment or System personnel, or other similar Subscriber actions. No Subscriber may be disconnected due to a Grantee's failure to timely or correctly post payments. The technician performing the disconnection must perform such disconnection in the safest reasonable manner. No Subscriber may be disconnected outside of Normal Business Hours or on Sundays or holidays. th: ~af~:t r~as~na~!: m~m:er. Subject to paragraph 7.9 F, disconnections for non- payment which are completed in the field must be accompanied by a door tag which provides notice that the technician has been present and a telephone number for Grantee's customer service office. Disconnections made remotely by computer require the Grantee to mail information describing the amount of 42 MASTER CABLE SERVICES REGULATORY ORDINANCE payment in arrears as of the disconnection date, and applicable reconnection charges and procedures to the Subscriber. After disconnection, upon payment by the Subscriber of all proper charges in full, the Grantee shall reinstate Service as provided for herein. Absent extenuating circumstances, a Grantee is not required to reconnect a Subscriber with an undisputed outstanding balance. A Grantee is permitted to refuse orders for premium or "pay per view" Services from Subscribers with chronic non-payment records. A Grantee may disconnect Subscriber premises that are responsible for signal leakage in excess of applicable federal limits. Grantee may effectuate such disconnection without advance notice, provided that the Grantee shall immediately notify the Subscriber with door tags and/or telephone calls. If the source of the signal leakage is remedied, the Grantee shall reconnect the Subscriber at no charge. For purposes of this Section, use of FCC-approved navigation devices does not in and of itself constitute signal leakage. Subscribers may request disconnection or a downgrade of Cable Service at any time. The Grantee may not impose any charge for Service delivered after the requested date of disconnection as long as the request is made at least one day before the requested date of disconnection. As provided under federal law, subscribers may request a downgrade at no charge if made within thirty (30) days of a rate increase. If a Grantee fails to provide Cable Service requested by a Subscriber who is entitled to Cable Service under a Franchise Agreement or this Ordinance, the 43 MASTER CABLE SERVICES REGULATORY ORDINANCE Grantee shall, after adequate notification and being afforded the opportunity to provide the Service, promptly refund all deposits or advance charges paid for the Service in question by said Subscriber. If any Subscriber has made an annual payment in advance and terminates Service because of the failure of a Grantee to render the Service in accordance with the standards set forth in a Franchise Agreement or this Ordinance, the Grantee shall refund to such Subscriber an amount equal to the prorated amount of the remaining period of the prepayment. The refund provisions provided for in this section do not alter a Grantee's responsibility to Subscribers under any separate contractual agreement or relieve a Grantee of any other liability. Subscribers may be asked, but not required as a condition of any refund or return of Subscriber deposits to personally return such equipment to the Grantee's office. Refunds for known system outages shall be obtained upon request of the subscriber of the cable operator. Nothing in this Ordinance shall limit the right of a Grantee to deny Service to any household or individual which has a negative credit or Service history with Grantee, which may include non-payment of bills, theft or damage to the Grantee's equipment, outstanding balances, or threats or assaults on employees of Grantee in the course of their employment. In the event Service is denied, the Grantee will give notice to the Subscriber of the right to contact the appropriate authority, as designated by the City. 44 MASTER CABLE SERVICES REGULATORY ORDINANCE 7.10 Communications Between Grantees and Subscribers. A. Notifications to Subscribers: (1) Every Grantee shall provide written information to Subscribers on each of the following topics at the time of installation, at least annually to all Subscribers, at any time upon request, and at least thirty (30) days prior to making significant changes in such information, provided, however, that Grantee shall make reasonable efforts to provide notification to the City of all such significant changes prior to notifying Subscribers: (a) Product and Services offered; (b) Prices and options for programming Services and conditions of subscription to programming and other Services and facilities. If Grantee reasonably determines it would reduce confusion as to what the total cost of Cable Service would typically be, at the time of installation, Grantee will quote to Subscribers prices that include typical Franchise Fees and any other fixed costs (such as FCC regulatory fees and public access support payments). Nothing in this section prohibits or restricts use of rates without Franchise Fees and/or other fixed cost elements in area-wide advertisements; (c) Installation and maintenance policies including, when applicable, information regarding the Subscriber's home wiring rights and information describing ownership of internal wiring during the period Service is provided; (d)Instructions on how to use Services; 45 MASI'ER CABLE SERVICES REGULATORY ORDINANCE (2) (3) (e) Instructions on how to place a Service call; (f) Channel positions of programming offered on a System; (g) Billing and Complaint procedures, including the name, address and telephone number of the City; and (h) The Grantee's practices and procedures for protecting against invasions of privacy pursuant to the FCC's rules; (i) The availability of signal control devices and universal remotes and other compatible equipment (a list of brands and models shall be provided upon request); and (j) The address and telephone number of the Grantee's office to which Complaints may be reported. Grantee promotional materials, announcements and advertising of Service to Subscribers, including pay-per-view or event programming, shall clearly and accurately disclose price terms. In the case of telephone orders, the Grantee shall take appropriate steps to ensure that price terms are clearly and accurately disclosed to potential customers before the order is accepted. Subscribers will be given thirty (30) days advance notice of any changes in rates, programming Services, or Channel positions, if the change is within the control of the Grantee. All such notice shall be provided in writing by any reasonable means. In addition, every Grantee shall notify Subscribers thirty (30) days in advance of any significant changes in other information required by this section. Notwithstanding the foregoing or any provision 46 MASTER CABLE SERVICES REGULATORY ORDINANCE of this Ordinance to the contrary, a Grantee shall not be required to provide prior notice of any rate change that is the result of a regulatory fee, Franchise Fee, or any other fee, tax assessment, or change of any kind imposed by any government entity on the transaction between the Grantee and the Subscriber. Billing. (1) The organization and format of all bills must be developed in accordance with industry standards. (2) Bills must be clear, concise, and understandable. Bills must be fully itemized, with itemizations including, but not limited to, Basic and premium Service charges and equipm, ent charges. (3) Bills must clearly show a specific payment due date. (4) If a Grantee chooses to itemize, as a separate line item on bills, Franchise Fees or other government imposed fees attributable to the total bill, such fees must be shown in accordance with any applicable law concerning the Grantee's ability to itemize such fees. Bill language related to Franchise Fees shall be identified in the following manner: "Franchise Fee." Any passthrough of grants to support the City's government access channel may be separately identified on Subscriber bills as set forth in the Franchise Agreement. Bills must clearly delineate all activity during the billing period, including optional charges, rebates, and credits. Nothing in this section prohibits or (5) 47 MASTER CABLE SERVICES REGULATORY ORDINANCE restricts a Grantee from offering packages of programming to Subscribers and to identify such packages on the Subscriber bill. (6) The billing statement must clearly and conspicuously indicate the past due date, and if applicable the date certain that a Subscriber's Service will be disconnected and a telephone number for the Subscriber to call to make payment arrangements or otherwise resolve a billing dispute. (7) Negative option billing is prohibited in accordance with applicable federal law. (8) In case of a billing dispute, a Grantee must respond to a Complaint from a Subscriber within fifteen (15) calendar days. Credits for Service shall be issued no later than the Subscriber's next billing cycle after determination that the credit is warranted. Late Payment for Cable Service Grantees shall provide reasonable notice to the City and Subscribers of the amount of any processing fees for late payments and the manner of imposing such fees. Any late fee that may be imposed shall be in an amount and manner consistent with applicable state and federal law. Construction and Outages To the extent feasible, the Grantee shall post override notices on appropriate System Channels, and may make use of local advertising availabilities on programming Channels, to advise Subscribers in advance of planned construction or maintenance that will cause or is likely to cause Service Interruptions. To the extent that specific neighborhoods will be impacted by a planned outage, such as 48 MASTER CABLE SERVICES REGULATORY ORDINANCE during an upgrade, the Grantee shall provide at least seven (7) calendar days advance notice through telephone calls, door hangers or other reasonable means that are designed to be realistically effective in bringing the information to the attention of Subscribers. 7.11 Complaint Log. Subject to the privacy provisions of 47 U.S.C. § 521 et seq., Grantor and every Grantee shall prepare and maintain written records of all Complaints made to them and the resolution of such Complaints, including the date of such resolution. Such written records shall be on file at the office of each Grantee. Every Grantee shall make available to Grantor a written summary of such Complaints and their resolution upon request. 7.12 Parental Control Every Grantee shall make available to any Subscriber upon request a "lockout" device for blocking both video and audio portions of any channel(s) of programming entering the Subscriber's premises. Such device shall be provided at a reasonable charge, except to the extent that federal law specifically provides otherwise. The Grantee may, however, require a reasonable security deposit for the use of such a device. 7.13 Periodic Subscriber Survey. The Franchise Agreement shall provide terms for a periodic Subscriber survey to assess the Cable-related needs of the community throughout the term of the Franchise as well as procedures for review and implementation of changes identified through any such survey. 7.14 Service Area No Grantee may discriminate in the build-out of its System to a particular area of the City or provision of Service to individual or groups of Residents on the basis of race, creed, 49 MAS[ER CABLE SERVICES REGULATORY ORDiNANCE 7.15 religion or economic condition. Unless the Franchise Agreement provides otherwise, every Grantee shall serve all areas of the City with populations of at least thirty (30) dwelling units per cable mile, including areas annexed subsequent to the grant of the Franchise. The Franchise Agreement shall provide a schedule of the areas to be served, and the specific build-out requirements of the Grantee, and shall also describe the process for extending service to areas that will meet minimum density requirements at some future date. Unless the Franchise Agreement provides otherwise, every Grantee shall extend Service to commercial areas at no additional costs where the costs to do so does not exceed the same costs of providing service in a residential area with a density of thirty (30) homes per mile. The Franchise Agreement shall also set forth the policies and procedures under which Cable Service will be extended to a Person requesting the extension of Service into an area that does not meet the requisite density standards. Customer Service Reporting Requirements. In addition to the semi-annual reports on telephone Service compliance detailed in Section 7.6.M, the Grantor may require upon reasonable request a Grantee to periodically prepare and furnish to Grantor semi-annual reports and any other reasonable information relevant to the Grantee's compliance with the customer Service requirements of this Ordinance. Such reports shall include, at minimum, the following: A. A Service Interruptions Report that tracks information on a monthly basis to include: (1) Total number of reported Service Interruptions; (2) Date and time of all reported Service Interruptions; 50 [ MASTER CABLE SERVICES REGULATORY ORDINANCE [ 7.16 8.1 (3) Total hours that the System was out-of-Service as related to planned upgrades, maintenance or Channel line-up changes performed by a Grantee; and (4) Estimated number of Subscribers affected by each incident. In addition to the above, the City may request that Service Interruption Reports contain graph(s) that depict a Grantee's performance with respect to the items above for up to a three (3) year period prior to the date the report was requested. B. Results of any FCC required technical or performance testing on the System. City Monitoring. In addition to free outlets, free Cable Service or Services otherwise required by the Franchise, Grantee shall provide one Service outlet (which shall be at the Cable Administrator's office at City Hall, unless otherwise specified by City) that shall receive without charge all basic and expanded basic Cable programming provided by Grantee. Such Service shall be provided in such a manner that the City may monitor the programming and use of the Cable System for compliance with the Franchise Agreement, this Ordinance, FCC technical standards, and applicable State and federal law. The Services provided pursuant to this requirement shall be in a secure office location, and not in a location open to public viewing. ARTICLE 8. CONSTRUCTION STANDARDS Right-of-Way Construction. Prior to commencing any construction in the City, a Grantee must obtain all necessary permits and licenses required of Persons working in the Right-of-Way by federal, state 51 MASTER CABLE SERVICES REGULATORY ORDINANCE 8.2 8.3 and city laws, ordinances and rules, and pay all azzvciate2 generally applicable fees. Further, a Grantee shall comply with all applicable laws, ordinances, rules, and standards relating to the construction, operation and maintenance of a Cable Television System. All lines, equipment, and connections in, over, under, and upon the Ri~ht-of-Way and private property within the City, wherever situated or located, shall at all times be kept and maintained in a safe and suitable condition and in good order and repair. Compliance with Laws. At a minimum, and without limitation, a Grantee shall adhere to all building, electrical and zoning codes currently or hereafter in force in the City. The construction, installation, and maintenance of the Cable System shall be effectuated by Grantee in a manner that is consistent with the laws, ordinances and construction standards of the State of Texas, the Occupational Safety and Health Administration, the National Electrical Safety Code, National Electrical Code and the FCC, to the extent applicable, as well as all other applicable laws, rules, regulations and ordinances that are generally applicable and promulgated pursuant to the City's lawful police power. All open connections on splitters, couplers and other devices shall be properly terminated. Minimum Interference. All of Grantee's construction, installation, operation, repair and maintenance, and the arrangement of its lines, cables and other appurtenances, on both public and private property, shall be conducted in such a manner as to cause minimum interference with the rights and reasonable convenience of the public and any property ovmers that may be affected. In the event of any such interference, the City may require the removal of 52 MASTER CABLE SERVICES REGULATORY ORDINANCE Grantee's lines, cables and appurtenances from the Public Rights-of-Way in question, at the sole expense of the Grantee. 8.4 Repair of Property. Grantee shall promptly repair and restore any City or private property which may be damaged as a result of the construction, installation, operation, repair or maintenance of the Cable System. Any such property damaged or destroyed shall be promptly repaired and restored by Grantee, at Grantee's sole cost and expense and to the reasonable satisfaction of the City, to its condition prior to being damaged or shall be replaced by Grantee with equivalent property. 8.5 Erection of Poles. Grantee shall not erect, for any reason, any pole on or along any Public Rights-of-Way in an existing aerial utility system without the advance written approval of the City. If additional poles in an existing aerial route are required, Grantee shall negotiate, as needed, with the utility for the installation of the needed poles. Any such addition shall require the advance written approval of the City. Grantee shall negotiate the lease of pole space and facilities from the existing pole owners for all aerial construction, under mutually acceptable terms and conditions. The City shall assist in arriving at an equitable pole rental agreement. 8.6 Reservations of Street Rights. Nothing in this Ordinance shall he construed to prevent the City from constructing storm or sanitary sewers, grading, paving, repairing or altering any Public Rights-of-Way, or laying down, repairing or removing water mains or gas lines, traffic signal control systems, City fiber plant, or constructing or establishing any public utility, Service or 53 MASTER CABLE SERVICES REGULATORY ORDINANCE 8.7 other public work that the City may operate or undertake now or in the future. All such work shall be done, insofar as practicable, in such manner as not to obstruct, injure or prevent the free use and operation of poles, wires, conduits, conductors, pipes or appurtenances of Grantee. If City in its sole discretion shall determine that Grantee will interfere with the construction or repair of any Public Right-of-Way or public improvement, whether it be construction, repair or removal of a sewer or water main, the improvement of any Public Way or any other public improvement, then all such property of Grantee shall be removed or replaced, or temporarily disconnected, in such manner as shall be directed by the City so that the same shall not interfere with the public works of such City. Such removal or replacement shall be at the expense of Grantee; provided, however, that nothing in this Ordinance shall preclude Grantee from seeking reimbursement for removal or replacement costs from any public funds generally available to Rights-of-Way users for the reimbursement of such costs. Underground Installation. In those areas within the City where Cable System facilities are currently placed underground, all Cable System facilities shall remain or be placed underground. In areas where either telephone or electric utility facilities are above ground at the time of installation, Grantee may install its Cable System facilities above ground, provided that at such time as both electric and telephone utility facilities are placed underground, Grantee shall likewise place its Cable System facilities without cost to the City or if City requires undergrounding in the future pursuant to a separate ordinance. Nothing contained in this Section shall require a Grantee to construct, operate and maintain underground any 54 MASI'ER CABLE SERVICES REGULATORY ORDINANCE 8.8 8.9 ground-mounted appurtenances, except that Grantee shall take steps to minimize the number and visual impact of such facilities. Conduit. A. The City shall not be responsible for any cuts or damage to buried or underground facilities of a Grantee that are not dearly marked or cannot be located through the Texas "one-calF service. B. Grantee shall make available at its office for City review~ ..... .......... :~ ~'~ C:ty' detailed strand and trench maps ' ~*~- ~n ..... a paper format. Grantee shall provide Ci_ty i~n ~nfi a mutually agreed upon electronic format strand and trench maps without detailed measurement calculations,u~c ~..~" ..~.. ..... und~rgr~un~~._~'-,~ r,,,~:~,~.~_ cable. C. Grantee shall provide a contact number for the City to call in emergency situations requiring an immediate response on the part of the City, or a City Utility. If the Grantee does not properly and effectively identify the precise location of its facilities within forty-five minutes of an emergency call from the City or City Utility, the City shall not be responsible for damage to the Grantees facilities. Clearing Poles and Cables. Grantee shall have the right to remove, trim, cut and to keep clear of its poles, cables, underground conduits and related equipment the trees in and along the public streets, but, in the exercise of such right, Grantee shall not cut such trees to any greater extent that is reasonably necessary for the construction, erection, installation, maintenance and use of Cable System equipment. Except in emergency situations, Grantee shall not remove, trim 55 MASTER CABLE SERVICES REGULATORY ORDINANCE or cut such trees from any public streets without first providing reasonable notice to the City of its intention to do so, such notice to be delivered not less than ten (10) days in advance. The Grantee shall compensate the City or any private owners of such trees for any damage proximately caused by Grantee's negligent conduct. 8.10 Moving Facilities. Grantee, on the request of the City, or any Person holding a building permit issued by the City, or any permit issued by an appropriate State agency, shall temporarily move its wires, cables, poles or other Cable System facilities to permit the moving of large objects, vehicles, buildings or other structures. The expense of such temporary moves shall be paid to Grantee by the Person requesting the same and Grantee shall have the authority to require such payment in advance. Grantee shall be given not less than thirty (30) days advance notice to arrange for such temporary moves. 8.11 Work Performed by Others. A. A Grantee shall make available to the City upon reasonable request the company names and businesses addresses of any Person, other than the Grantee, which performs Services pursuant to a Franchise Agreement; provided, however, that all provisions of this Ordinance remain the responsibility of Grantee. B. To the extent applicable, all provisions of this Ordinance shall apply to any subcontractors or others performing any work or Services pursuant to the provisions of a Franchise Agreement on behalf of a Grantee. 8.12 Duty to Grantee. Nothing contained in this Ordinance shall relieve any person from liability arising out of the failure to exemise reasonable care to avoid injuring Grantee's facilities while 56 I MASTER CABLE SERVICES REGULATORY ORDINANCE [ 9.1 9.2 performing any work connected with grading, regrading or changing the line of any Public Way or with the construction or reconstruction of any sewer or water system or utility system. ARTICLE 9. OPERATION AND MAINTENANCE Open Books and Records. Each Grantee shall cooperate with the Grantor with respect to Grantor's administration of this Ordinance and its applicable Franchise Agreement. Grantor shall have the right to inspect, at any time during Normal Business Hours all books, records, maps, plans, income tax returns, financial statements, Service complaint logs, perforn~ance test results, and other existing like materials of a Grantee that relate to the operation of a Grantee's System and that are reasonably necessary to Grantor's enforcement or administration of this Ordinance and/or a Franchise Agreement. The Grantee shall not be required to maintain any books or records for Franchise compliance purposes longer than five (5) years. Upon request, the Grantor will treat designated information disclosed by a Grantee as confidential to the extent permissible under state and federal law. Communications with Regulatory A~encies. A Grantee shall provide the City with timely notice of all petitions, applications, communications, and reports submitted by each Grantee to the FCC, Securities and Exchange Commission, or any other federal or State regulatory commission or agency having jurisdiction in respect to any matters affecting System operations, and shall make copies of such filings and pleadings available to Grantor upon request within thirty (30) 57 MASTER CABLE SERVICES REGULATORY ORDINANCE 9.3 days of the filing. Copies of responses from the above regulatory agencies to each Grantee likewise shall be made available promptly to Grantor, upon request. Annual Reports. A. Upon request, each Grantee shall make available to Grantor, at the end of each of the applicable Grantee's fiscal years during the term of a Franchise Agreement, the following: (1) A revenue statement certified by an officer or certified public accountant of the Grantee showing, in such detail, the Gross Revenues of the Grantee for the preceding fiscal year; (2) A current list of names and addresses of each officer and director and other management personnel of the Grantee; (3) A copy of all documents that relate to the Grantee's System that were filed with any federal, State, or local agencies during the preceding fiscal year and that were not previously filed with Grantor; (4) A statement of the Grantee's current billing practices and charges; (5) A copy of the Grantee's current Subscriber Service contract; and (6) A copy of Annual Reports, if any, to stockholders for operating company and parent company. B. Grantor and its agents and representatives may and shall have the authority to arrange for and conduct an audit of and copy the books and records necessary for the enfomement of the Franchise Agreement of any Grantee. A Grantee shall first be given twenty (20) calendar days notice of the audit, the description of and 58 MASTER CABLE SERVICES REGULATORY ORDINANCE 9.4 9.5 purpose for the audit, and a description, to the best of Grantor's ability, of the books, records, and documents that Grantor wants to review. Additional Reports. Upon request, each Grantee shall prepare and furnish to Grantor, at thc fimcz and :~ fha rcm'., v ........ :1, such additional reports with respect to its operations, affairs, transactions, or property, ..,~-;~- ....... ~-~ ~.~ ~. ,h~ ! ,~; .... ,:~ Ar .t.c G a~e-v~v, essm~where reasonably necessary to ascertain the Grantee's compliance with the Franchise. *ke C;.t3 .,,h ........ ;+"~+'~'~ ^~ ~""~*~'~, ~'~'~ 11 Service Contract and Subscriber Information. A. Each Grantee shall have authority to promulgate such rules, regulations, terms, and conditions governing the conduct of its business as shall be reasonably necessary to enable the Grantee to exercise its rights and perform its obligations under this Ordinance and any Franchise Agreement and to assure uninterrupted Service to all of its Subscribers; provided such rules, regulations, terms, and conditions shall not be in conflict with the provisions of this Ordinance, a 59 MAS IER CABLE SERVICES REGULATORY ORDINANCE Franchise Agreement, federal, State and/or City law, or any applicable rules and regulations. B. Every Grantee shall submit to Grantor any Subscriber contract form that it utilizes. If no written contract exists, a Grantee shall file with the City upon request a document completely and concisely stating the terms of the residential Subscriber contract offered, specifically including the length of the Subscriber contract. The length and terms of any Subscriber contract shall be available for public inspection during Normal Business Hours. C. The term of an end-user residential Subscriber contract for Service shall not be for more than twelve (12) months duration unless after twelve (12) months the contract may be terminated at the Subscriber's option with no penalty to Subscriber. Nothing in this paragraph shall prohibit a Grantee from entering into Subscriber contracts by reason of a line extension policy for a term that is longer than twelve (12) months in duration. ARTICLE 10. GENERAL FINANCIAL AND INSURANCE PROVISIONS 10.1 Franchise Fee. A. As compensation for a Franchise, and in consideration of permission to use the Rights-of-Way of the City for the construction, operation and maintenance, of a Cable System within the City, and to defray the costs of regulation, each Grantee shall pay to Grantor an annual amount equal to five percent (5%) of the Grantee's Gross Revenues. To the extent permissible under applicable law, such Franchise Fee shall be considered separate and distinct from any Municipal 60 MASTER CABLE SERVICES REGULATORY ORDINANCE Telecommunications Consent Fees assessed against a Grantee for its use of the City's Rights-of-Way for the provision of telecommunications Services pursuant to the terms of Title 9, Chapter 283 of the Texas Local Government Code, or other applicable state law. The payment of the Municipal Consent Fee shall be on a non-discriminatory basis as between telecommunications providers. Payments due Grantor under this section shall be computed quarterly, for the preceding quarter. Each quarter payment shall be due and payable no later than forty-five (45) days after the end of the preceding quarter. Unless the Franchise Agreement provides otherwise, at the request of the City, Grantee shall electronically deposit payments into a financial institution designated by the City. Any associated charges for electronic transfer may be credited against the Franchise Fee. Verification of this deposit shall be provided to the City Treasurer. Each payment shall be accompanied by a brief report by a Grantee showing the basis for the computation and a "Franchise Fee Worksheet" listing all of the sources of revenues attributable to the operation of Grantee's System. A Grantee that is subject to a Municipal Telecommunications Consent Fee shall maintain separate accounts and records with respect to the calculation and payment of such fees. No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim Grantor may have for further sums payable under the provisions of this Ordinance or a Franchise Agreement. Ail amounts paid shall be subject to audit and recomputation by Grantor or its designee at any 61 MASTER CABLE SERVICES REGULATORY ORDINANCE 10.2 10.3 time during any calendar year (but no more than once per calendar year) upon twenty (20) calendar days notice, including information on the specific documents requested to be reviewed. Security Fund. Each Grantee shall maintain a security fund with the City to ensure compliance with this Ordinance and the applicable Franchise Agreement, in an amount and in a manner as set forth in the Grantee's Franchise Agreement. Penalties Procedure. A. Whenever Grantor has reason to believe that a Grantee has violated any provision of a Franchise Agreement or this Ordinance, Grantor shall first notify the Grantee of the violation and demand correction within a reasonable time, which shall not be less than twenty (20) days in the case of the failure of a Grantee to pay any sum or other amount due the Grantor under a Franchise Agreement, and thirty (30) days in all other cases. If a Grantee fails to correct the violation within the time prescribed, or if a Grantee is unable to correct the violation and fails to commence corrective action within the time prescribed and to diligently remedy such violation thereafter, the Grantee shall then be given written notice of not less than twenty (20) days of a public hearing to be held before the Council. Said notice shall indicate with reasonable specificity the violation alleged to have occurred. At the public hearing, the Council shall hear and consider all relevant evidence and thereafter render findings and a decision based upon the evidence. Any such hearing must, at a minimum, provide the Grantee n c,,n ~ ~:~: ..... ""'~:~' to b~, ~full due process. 62 MASTER CABLE SERVICES REGULATORY ORDINANCE In the event the City finds that a Grantee has corrected the violation or promptly commenced correction of such violation after notice thereof from Grantor and is diligently proceeding to fully remedy the violation, or that no violation has occurred, the proceedings shall terminate and no penalty or other sanction shall be imposed. In the event the City finds that a violation exists and that a Grantee has not corrected the same in a satisfactory manner or did not promptly commence and diligently proceed to correct the violation, the City may impose liquidated damages from the security fund, as set out in the Franchise Agreement. If Grantor elects to assess liquidated damages, then such election shall constitute Grantor's exclusive remedy for a period of sixty (60) days. Thereafter, if a Grantee remains in non-compliance, the Grantor may pursue any other available remedy. In the event that a Franchise is cancelled or terminated by reason of the default of a Grantee, the security fund deposited pursuant to a Franchise Agreement shall remain in effect and available to the Grantor until all pending claims or penalties are resolved or settled, after which point any remaining amounts in the security fund shall revert to the possession of the Grantee. The rights reserved to Grantor with respect to the security fund are in addition to all other rights of Grantor, whether reserved by a Franchise Agreement, this Ordinance, or authorized by law, and no action, proceeding, or exercise of a right with respect to such security fund shall affect any other right Grantor may have. 63 MASI'ER CABLE SERVICES REGULATORY ORDINANCE 10.4 11.1 H. In instances of repeated violations, whether remedied or not, the Grantor shall serve special notice outlining additional remediation requirements. Failure to cure, as measured by repeated instances of the same violation, is evidence of an evasive practice and may lead to revocation under Article 11. Bonds, Indemnification, and Insurance. Each Grantee shall maintain bonds and insurance with the City in amounts and in a manner as set forth in the Grantee's Franchise Agreement. Each Grantee also shall be required to indemnify the City in a manner as set forth in the Grantee's Franchise Agreement. ARTICLE 11. REVOCATION Grounds for Revocation. In addition to any rights in this Ordinance or a Franchise Agreement, Grantor reserves the right to revoke the Franchise, and all rights and privileges pertaining thereto, in the event that: A. A Grantee substantially violates any material provision of this Ordinance or a Franchise Agreement; B. A Grantee attempts to evade any of the provisions of this Ordinance or a Franchise Agreement; C. A Grantee practices an act of fraud or deceit upon the Grantor; or D. A Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt. 64 MASTER CABLE SERVICES REGULATORY ORDINANCE 11.2 Procedure. A. Whenever Grantor has reason to believe that there may be grounds for revocation of a Franchise, Grantor shall first notify the Grantee in writing of its basis for believing grounds for revocation exist. Such notice shall indicate with reasonable specificity the grounds for revocation that are believed to exist so that the Grantee may have a reasonable opportunity to cure or otherwise address the grounds. If a Grantee fails to adequately cure or address the purported grounds for revocation within thirty (30) days of such notice, then the Grantor may, upon thirty (30) days written notice to the Grantee, commence a public administrative heating to determine whether there exists ground for revocation. B. The administrative hearing shall be conducted so as to protect the full due process rights of the parties and provide for, at a minimum, the right to have counsel, the right to call and cross examine witnesses, if requested the right to a full transcript of the proceedings, and the right to have the matter heard before a mutually agreed upon third party hearing officer. After the close of the heating, Grantor or the designated heating officer shall issue a written decision based on the record of the proceedings, stating with specificity the findings and reasons supporting the decision. Upon revocation, a Grantee shall have a period of sixty (60) days subsequent to the date of the formal adoption of a revocation of the Franchise by the City within which to file an appeal with a court of competent jurisdiction. During the appeal period, the Franchise shall remain in full force and effect. 65 MASTER CABLE SERVICES REGULATORY ORDINANCE 12.1 12.2 ARTICLE 12. FORECLOSURE, RECEIVERSHIP AND ABANDONMENT Foreclosure. Upon the foreclosure or other judicial sale of all or a part of a System, or upon the termination of any lease covering all or part of a System, a Grantee shall notify Grantor of such fact and such notification shall be treated as a notification that a change in control of the Grantee has taken place, and the provisions of this Ordinance governing the consent to transfer or change in ownership shall apply without regard to how such transfer or change in ownership occurred. Receivership. Grantor shall have the right to cancel a Franchise Agreement one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of a Grantee, whether in receivership, reorganization, bankruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless: A. Within one hundred twenty (120) days afier its election or appointment, the receiver or trustee has fully complied with all the provisions of Grantee's Franchise Agreement and this Ordinance and remedied all defaults thereunder; and B. Such receiver or trustee, within said one hundred twenty (120) days, has executed an agreement, duly approved by a court having jurisdiction, whereby such receiver or trustee assumes and agrees to be bound by each and every provision of this Ordinance and the applicable Franchise Agreement. 66 MAS[ER CABLE SERVICES REGULATORY ORDINANCE ARTICLE 13. PURCHASE OF SYSTEM 12.1 ~: .................................... tho ' P~chase By ~tor Upon Te~ination of Fr~cMse Te~ or Revocation of Fr~chise. The Grantor may, in accordance with and to the extent permitted by 47 U.S.C. § 547, upon the payment of a fair valuation, ascertain, purchase, condemn, acquire, take over, and hold the property and plant of a Grantee, in whole or in part, on the following conditions: (1) Upon revocation of a Franchise, such valuation shall not include any sum attributable to the value of the Franchise itself and plant and property shall be valued according to its book value at the time of revocation, or the System's initial cost less depreciation and salvage. 67 MASTER CABLE SERVICES REGULATORY ORDINANCE 14.1 (2) At the expiration of a Franchise Agreement (and nonrenewal), such valuation shall be at fair market value, exclusive of the value attributed to the Franchise itself. (3) In the event Grantor shall terminate a Franchise pursuant to the provisions of this Ordinance or a Franchise Agreement, and commenced operation of the System, Grantor shall reimburse the Grantee for the fair market value of the System. ARTICLE 14. SALE OR TRANSFER Sale or Transfer of Franchise. A. No Grantee shall sell, transfer, lease, assign, sublet, or dispose of, in whole or in part, an interest in or control of a Franchise or Cable System or any of the rights or privileges granted by a Franchise Agreement, without the prior consent of the Grantor, which consent shall not be unreasonably denied or delayed and may be denied only upon a good faith finding by the Grantor that the proposed transferee lacks the legal, technical, or financial qualifications to consummate the transaction and operate the System so as to perform its obligations under this Ordinance and the applicable Franchise Agreement. This section shall not apply to sales of property or equipment in the normal course of business. Consent from the Grantor shall not be required for a transfer in trust, mortgage, or other instrument of hypothecation, in whole or in part, to secure an indebtedness, or for a pro forma transfer to a corporation, partnership, or other entity controlling, controlled by, or under common control with a Grantee. 68 MASTER CABLE SERVICES REGULATORY ORDINANCE The following events shall be deemed to be a sale, assignment, or other transfer of an interest in or control of a Franchise or Cable System requiring compliance with this section: (i) the sale, assignment, or other transfer of all or a majority of a Grantee's assets; (ii) the sale, assignment, or other transfer of capital stock or partnership, membership, or other equity interests in a Grantee by one or more of its existing shareholders, partners, members, or other equity owners so as to create a new controlling interest in a Grantee; (iii) the issuance of additional capital stock or partnership membership or other equity interest by a Grantee so as to create a new controlling interest in a Grantee; and (iv) a Grantee's agreement to transfer management or Operation of the Grantee or the System to an unaffiliated entity. The term "controlling interest" as used herein means majority equity ownership of a Grantee. In the case of any sale or transfer of ownership of an interest in or control of a Franchise or Cable System, the City shall have one hundred twenty (120) days to act upon any request for approval of such sale or transfer that contains or is accompanied by such information as is required in accordance with FCC Regulations and the requirements of this Ordinance and the applicable Franchise Agreement. If the City fails to render a final decision on the request within one hundred twenty (120) days after receipt by the City of all required information, such request shall be deemed granted unless the requesting party and the City agree to an extension of the one hundred twenty (120) day period. Grantor reserves any rights it may have to require that a Grantee pay all costs and expenses incurred by Grantor in connection with the sale, assignment, or transfer 69 MAS'I'ER CABLE SERVICES REGULATORY ORDINANCE of a Franchise, including but not limited to the Grantor's costs of reviewing the qualifications of any proposed transferees. ARTICLE 15. RIGHTS OF INDIVIDUALS PROTECTED 15.1 Discriminatory Practices Prohibited. No Grantee shall deny Service, deny access, or otherwise discriminate against Subscribers, programmers, or general citizens on the basis of race, color, religion, national origin, sex, disability, or age. Every Grantee shall strictly adhere to the equal employment opportunity requirements of State and federal law. Each Grantee shall comply at all times with all other applicable federal, State, and local laws, and all executive and administrative orders relating to non-discrimination. 15.2 Subscriber Privacy. Grantees shall at all times comply with the federal subscriber privacy requirements codified at 47 U.S.C. § 551. ARTICLE 16. MISCELLANEOUS PROVISIONS 16.1 Rate Regulation The City reserves the right to regulate rates for Basic Cable Service and any other Services offered over the Cable System, to the extent permitted by federal or State law. Grantee shall be subject to the rate regulation provisions provided for herein, and those of the Federal Communications Commission (FCC) at 47 C.F.R., Part 76.900, Subpart N. The City shall follow the rules relating to cable rate regulation promulgated by the FCC at 47 C.F.R., Part 76.900, Subpart N. 70 MAS'I'ER CABLE SERVICES REGULATORY ORDINANCE 16.2 Rights Reserved to Grantor. A. Upon either the expiration (and denial of any requested renewal) or revocation of a Franchise, Grantor shall have discretion to permit and/or require a Grantee to continue to operate the Cable System for an extended period of time not to exceed six (6) months from the date of such expiration or revocation. A Grantee shall continue to operate the System under the terms and conditions of this Ordinance and the applicable Franchise Agreement and to provide the regular Subscriber Service and any and all of the Services that may be provided at that time. B. The Grantor shall have the right to compel continued operation of the Cable System whether by the Grantee, by a trustee or receiver or by the Grantor, and to ensure that such operation is consistent with public interest as determined by a court of competent jurisdiction. The Grantee may not remove equipment or documents necessary for continued operation of the system. 16.3 Administration of Franchise. The City shall be responsible for the continued administration of this Ordinance and all Franchise Agreements. The City may delegate this authority from time to time. 16.4 Nonenforcement by the City. Grantee shall not be relieved of its obligation to comply with any of the provisions of this Ordinance by reason of any failure of the city to enforce prompt compliance. 16.5 Governing Law and Choice of Forum. Any dispute arising with respect to this Ordinance or a Franchise Agreement granted pursuant to it, shall be subject to review by the state and federal courts sitting in Nueces County, Texas. 71 MASTER CABLE SERVICES REGULATORY ORDINANCE 16.6 Severabilit¥. If any material Section of this Ordinance or a Franchise Agreement adopted pursuant to it is held by a governmental authority of competent jurisdiction, to be invaild or unlawful as conflicting with applicable laws now or hereafter in effect, or is held by a court or competent governmental authority to be modified in any way in order to conform to the requirements of any such applicable laws, such provision shall be considered a separate, distinct, and independent part of this Ordinance, and, to the extent possible, such holding shall not affect the validity and enfomeability of all other provisions hereof. 16.7 Publication of Notices. All public notices or ordinances required to be published by Grantor under this Ordinance or any Franchise Agreement shall be published in the official newspaper of the City. Each Grantee shall pay the costs for publication of its Franchise Agreement and any amendments thereto, as such publication is required or authorized by law. Passed and adopted this day of ,2002. ATTEST: By By City of Corpus Christi, Texas 72 MASTER CABLE SERVICES REGULATORY ORDINANCE EXHIBIT A RULES AND PROCEDURES FOR PUBLIC ACCESS CABLECASTING SUMMARY OF ROLES / RESPONSIBILITIES / PROCESS Public Access Users: Individuals produce programming for cablecasting following specific participation rules and adhering to production standards. To obtain a regular weekly or monthly timeslot, Users participate in bi-annual Public Access Timeslot Lottery. These are called Series Users. For random placement of non-recurring show (i.e., a show that is not regularly produced), Users submit tapes, which are inserted in available timeslots by the PAUG. These are called Occasional Users. Public Access User Group (PAUG): Users organize themselves according to by-laws, electing among themselves officers and a Board of Directors. · The PAUG conducts a bi-annual Public Access Timeslot Lottery for each Public Access channel according to the rules and procedures, and uses those results to develop a Public Access Schedule for each channel. · The PAUG receives and schedules programming submitted by Occasional Users. · The PAUG collects and makes available for pickup by Cable Operators the schedules and tapes for each channel. · The PAUG administers the Rules and Procedures; Users may appeal decisions of the PAUG Board to the Cable Commission and, after that, to City Council. · The PAUG may require Series Users to pay nominal membership dues to offset minor operational expenses. Cable Operators: Franchised cable operators each provide plug-and-play of Public Access Programming according to the schedule provided by the PAUG. Cable Commission: The Cable Commission mediates any disputes brought to it by the PAUG. 73 MASTER CABLE SERVICES REGULATORY ORDINANCE RULES AND PROCEDURES FOR PUBLIC ACCESS CABLECASTING Channel space on Public Access Channels is available free of charge to any adult resident of the City of Corpus Christi in accordance with the following Rules and Procedures, as adopted by the City Council of the City of Corpus Christi on ,2002. These rules may be amended by City Council following recommendation from the Cable Commission or Franchised Cable Operators in the City of Corpus Christi. § 1 RULES FOR PARTICIPATION Users must complete and sign a Programming Contract. In signing the Programming Contract, the user warrants that the following rules will be observed: · All programs must be produced by a User as defined in Section 4. · All Programs shall be non-commercial as defined in Section 4. · No program shall be transmitted that requests contributions. · No program shall be transmitted that contains copyrighted information for which proper clearance or authorization has not been obtained. · No program shall be transmitted which contains obscene or indecent material. · All programs must include proper Program Identification as defined in Section 4. · All Users must provide two copies of each program on separate tapes, labeled in accordance with the instructions in Section 2. No program will be permitted to air over the Public Access Channels if a User or program violates one or more of the above rules. In the event a restriction is imposed on the User, the User may appeal that restriction to the Cable Commission and in accordance with the City Charter, to the City Council of the City of Corpus Christi. Except as otherwise permitted by applicable law, neither the PAUG nor the cable operators will restrict the content of any program. Cable operators are responsible for picking up all scheduled programs at a PAUG-designated location by Friday for insertion on the Public Access Channels. § 2 TECHNICAL STANDARDS AND PRODUCTION REQUIREMENTS Programs submitted for cablecast must conform to the technical standards and production requirements established for cablecast by the FCC and City of Corpus Christi Public Access Rules. The programs shall not cause the Cable Operator to be out of compliance with any applicable FCC Technical Standards. 74 MASTER CABLE SERVICES REGULATORY ORDINANCE QUALITY: Programs must deliver, in broadcast quality, clear audio and video throughout the entire length of the program. FORMAT: a. Videotapes submitted for playback must be either ½" VHS (SP speed) or DVCam. b. Users must transfer all other formats (including ½" Beta, VHS"C", '~uper ~"~-vH~, Reg 8, 3¼ U-Matic, and 1" tapes) to ½" VHS (SP speed) tapes for cablecasting. c. All tapes must be rewound to start position d. As new technology changes and formats become more conventional in the consumer markets, additional formats may be added to reflect current market use. The decision to add or delete formats will be made by the Cable Commission based upon a request from the PAUG and/or the Cable Operator(s). LABELING: All Users must clearly label tapes on the top of the tape and on the sleeve of the tape box. Each tape must have a label containing the following: a. Name of individual sponsor and telephone number b. Title of the program c. Length of the program d. Date to be played and scheduling number IDENTIFICATION: Only one program may be recorded on a tape. a. There must be either 60 seconds of color bars followed by 10 seconds of black or 60 seconds of black at the beginning of your program. b. There must be 60 seconds of black at the end of your program. c. Programs must include the Program Identification as defined in Section 4. LENGTH: a. All one-hour programs must be 59 minutes in length b. All half-hour programs must be 29 minutes in length. DEADLINE: Tapes must be delivered to the PAUG secretary by Wednesday of the week prior to the scheduled cablecasting date. § 3 HOW PROGRAMS ARE SCHEDULED Public Access For Series Users Series Programs are given a regular, weekly slot. Time slots are awarded during the semi-annual Timeslot Lottery. Conflicts on requests for time slots will be submitted to the Cable Commission for arbitration. 75 MAS[ER CABLE SERVICES REGULATORY ORDINANCE Each User may have only one series, not to exceed one hour per week. No later than two weeks prior to each bi-annual Timeslot Lottery, each Series User must submit a completed Public Access Cablecasting Application, including: a. User's name b. Program Name c. Length of the program (30 minutes or one hour) d. Frequency (weekly or monthly) e. Access Channel (10 or 18) (NOTE: A Series Program must select one channel for cablecasting of both first-mn and Repeat showings. Progrmns cannot be run on both channels.) Users will attend the Timeslot Lottery. a. The spring lottery is conducted on the in at a.m./p.m, with the new time slots actually beginning on the b. The fall lottery is conducted on the in with the new time slots actually beginning on the in at__ a.m./p.m. The Public Access Time Schedule will be broken into 30-minute intervals. Each User will draw a selection number randomly, with the lowest number having the first choice of time slots and continuing to all numbers are issued. The selection numbers will be determine by random selection Based on selection numbers, each User, one-by-one, selects an available timeslot. After all Users selects timeslots for their first-run shows, a second lottery will be executed in the similar manner for all Repeat showings of the series, not to exceed one repeat per show. One lottery will be executed for Channel 10 and one lottery executed for Channel 18. No programs will be scheduled during Holidays. Public Access For Occasional Users Single timeslots of 30 minutes or one hour will be available for occasional users on a first-come, first-served basis. Occasional Users must complete a Public Access Cablecasting application no later than two weeks prior to the desired cablecasting date. In addition to a first-run showing, a program may be repeated as channel space allows, not to exceed one repeat per show. 76 MASTER CABLE SERVICES REGULATORY ORDINANCE No programs will be scheduled during Holidays. Forfeit of Time slot If a Series User fails to turn the tapes in for two consecutive weeks, the User forfeits the Timeslot until the next lottery. § 4 Defined Terms Commercial Programming means any progrmnming which is cablecast for remuneration of any kind, whether directly or indirectly, or programming which includes, in whole or in part, content whether audio, video or text intended, directly of indirectly to promote any service, product or political candidate; or includes commercial advertising of any kind; or contains lottery or sweepstakes information. First come, first served is determined upon receipt by the PAUG Secretary. Holidays are holidays those officially observed by the U.S. Government. Program Identification - The tag at the beginning and end of the program must bear the User name, street address and/or local phone number as it appears on the User Application. The tag must appear for at least ten (10) seconds, in both the audio and video at the beginning and end of each program. Public Access Channel (sometimes herein "Channel") - This is the cable television channel or channels on which public access programs are cablecast, currently Channels 10 and 18. Public Access Time Allocated Schedule - The block of time slots allocated to each Public Access Channel that .are available and are allocated by lottery during the Semi-annual Timeslot Renewal Period. The block of time will be determined by calculating the number of users and programming hours for all shows including repeats starting at 12:00 noon to 9:00 p.m. for weekdays and 8:00 a.m. to 5:00 p.m. for weekends. The intent is to develop a block on time slots that provide for consecutive prograrnuring, without gaps in the programming schedule. Repeat Program - A program which was previously aired on any Public Access Channel. Semi-annual Timeslot Renewal Period ~ A period beginning April and October of each year, during which all who wish to request a Series for the upcoming six months must submit an application. Series - A locally produced Public Access show from a single User. A series can be either weekly or monthly. 77 MASTER CABLE SERVICES REGULATORY ORDINANCE User - Any adult resident of the City of Corpus Christi who, upon having paid the any required fees of the Rules and having executed a Program Contract, produces locally non-commercial programs for the Public Access Channels. Proof of eligibility must include a local street residence address and a local contact telephone number along with two valid idemification documents (one to establish personal ID and one to establish residency). 78 MAS'I'ER CABLE SERVICES REGULATORY ORDINANCE CORPUS CHRISTI PUBLIC ACCESS CHANNEL PROGRAMMING CONTRACT PLEASE FILL IN ALL BLANKS AND ANSWER ALL QUESTIONS IN ORDER FOR THIS PROGRAM TO BE SCHEDULED. INSTRUCTIONS FOR PROGRAM SUBMISSION: Program MUST be accompanied by a completed and signed Program Agreement and should be delivered no later than noon, Wednesday of the week prior to the cablecast date to PAUG Secretary, unless special arrangements are made. Program must meet or exceed technical requirements and be property labeled. Final decisions regarding specific cablecast times are made by programming staff, as per Rules and Procedures. Producer Name: Address Evening Phone: Daytime Phone: Talent releases obtained, if needed? yes Q no Q Copyright release(s) obtained if needed? yes Q no Q Have you read and do you understand the Rules and Procedures for use of the Public Access Channel? yes Q no Q Program Title: Length:. Is this program taped/produced locally? Cablecast Request Date: Time:(am/pm) Yes Q No Q (MM/DD/YY) Is this your first access program? Has this program played before? If yes, when air? Yes Q No Q Yes Q No Q did the program last Does or will the program contain either graphic physical violence, nudity or sexually explicit material? Yes Q No Q (Note: Such programs are only cablecast between 1:00 a.m. and 5:00 a.m. on weekdays.) 79 MAs[ER CABLE SERVICES REGULATORY ORDINANCE For All Programs Have you confirmed your cablecast date and time availability with PAUG? No Q Yes Q If you answered NO to any item, please indicate when you plan to confirm these requirements FAILURE TO COMPLETE THE ABOVE COULD DELAY PROCESSING OF YOUR APPLICATION 80 MASTER CABLE SERVICES REGULATORY ORDINANCE Please fill in all blanks and answer all questions: WARRANTY AGREEMENT: I understand, warrant, and represent to the City's Cable Operator that the program submitted by me contains none of the following: a. Any material that is libelous, slanderous, in defamation of character, or an unlawful invasion of privacy. b. Any material which is in violation of Subchapter B: Obscenity, of Chapter 43 of the Texas Penal Code. c. Any material contrary to local, state or federal laws. d. Any advertising or material that promotes any commercial product or service. e. Any solicitation or appeal for funds that is prohibited by law. f. Any unlawful use of copyrighted material g. Any material which has a reasonable probability of creating an immediate danger or damage to property, creating an injury to person(s), or creating public nuisance. These warranties and representations are made by me in order that this program be cablecast on the Public Access Cable Channels in accordance with its Rules and Procedures, which I affirm I have read and understood. I agree, further, to the extent allowed by law, to indemnify and save harmless the City of Corpus Christi and the City's franchised cable companies, from any and all claims, demands and damages or other liabilities which may be made against or arise out of the cablecast of the program submitted by me whether or not the program has been reviewed by PAUG Secretary prior to cablecast. I am aware that Section 639 of the FCC Policy Act of 1984 provides that: I'Vhomever transmits over any cable system any matter which is obscene or otherwise unprotected by the Constitution of the United States shall be fined not more than $10,000 or imprisoned not more than 2 years or both. AMENDMENTS TO RULES AND PROCEDURES [ MASTER CABLE SERVICES REGULATORY ORDINANCE FOR PUBLIC ACCESS CABLECASTING The City shall give any Cable Operator sixty (60) days written notice of any proposed amendment to the Rules and Procedures for Public Access Cablecasting. In the event that a Cable Operator objects in writing, the City and the Cable Operator shall thereafter meet and negotiate an amendment reasonably acceptable to all parties. In no event shall any amendment imposing greater obligations or restricting the rights of any Cable Operator become effective without the written consent of that Cable Operator. 2 Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly That the foregoing ordinance was read for the first time and passed to its second reading on this the __ Day of ., 2002, by the following vote: Rex A. Kinnison John Longoria Jesse Noyola Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the __ of ., 2002, by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly PASSED AND APPROVED this the ATTEST: __ Day of Day Rex A. Kinnison John Longoria Jesse Noyola Mark Scott .,2002. Armando Chapa City Secretary LEGAL FORM APPROVED JAMES R. BRAY, JR. CITY ATTORNEY By: Lisa Aguilar Assistant City Attorney 2002 Samuel L. Neal, Jr. Mayor AN ORDINANCE GRANTING TO TEXAS CABLE PARTNERS (TIME WARNER) A NON- EXCLUSIVE FRANCHISE TO CONSTRUCT, MAINTAIN, AND OPERATE FOR A PERIOD OF FIFTEEN YEARS A CABLE TELEVISION SYSTEM AND FACILITIES AND ADDITIONS THERETO, IN, UNDER, OVER, ALONG, ACROSS AND UPON THE STREETS, LANES, AVENUES, ALLEYS, SIDEWALKS, BRIDGES, RIGHTS-OF-WAY, EASEMENTS, HIGHWAYS AND OTHER PLACES IN THE CITY OF CORPUS CHRISTI, TEXAS NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Council hereby grants to Texas Cable Partners, Inc. (Time Warner) a non-exclusive franchise to construct, maintain, and operate for a period of fifteen years, a cable television system and facilities and additions thereto, in, under, over, along, across and upon the streets, lanes, avenues, alleys, sidexvalks, bridges, rights-of-way, easements, highways and other places in the City of Corpus Christi, Texas, subject to the terms and conditions of the attached franchise agreement. Samuel L. Neal, Jr. Brem Chesney Javier D. Colmenero Henry Garrett Bill Kelly That the foregoing ordinance was read for the first time and passed to its second reading on this the Day of ., 2002, by the following vote: Rex A. Kinnison John Longoria Jesse Noyola Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the of ,2002, by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly PASSED AND APPROVED this the ATTEST: Day of Day Rex A. Kinnison John Longoria Jesse Noyola Mark Scott ., 2002 Armando Chapa City Secretary LEGAL FORM APPROVED JAMES R. BRAY, JR. CITY ATTORNEY By: ~,A~ ~,~ Lisa Aguilar L) Assistant City Attorney [0 ,2002 Samuel L. Neal, Jr. Mayor [ TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT j FRANCHISE RENEWAL AGREEMENT Between TEXAS CABLE PARTNERS, L.P. And CORPUS CHRISTI, TEXAS Final - March 22, 2002 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT TABLE OF CONTENTS PAGE SECTION 1. DEFINITIONS ....................................................................................................... 2 1.1 Channel ............................................................................................................................ 2 1.2 Coxmnercial Programming ............................................................................................... 2 1.3 Effective Date .................................................................................................................. 3 1.4 Franchise Fee ................................................................................................................... 3 1.5 Grantee ............................................................................................................................. 3 1.6 Gross Revenues ................................................................................................................ 3 1.7 Locally Produced Programming ...................................................................................... 4 1.8 Normal Business Hours ................................................................................................... 4 1.9 Normal Operating Conditions .......................................................................................... 4 1.10 Service Interruption ......................................................................................................... 4 SECTION 2. GRANT OF FRANCHISE RENEWAL ..............................................................4 2.1 Grant ................................................................................................................................ 4 2.2 Right of City to Issue and Renew Franchise .................................................................... 5 2.3 Effective Date of Grant of Renewal ................................................................................. 5 2.4 Term ................................................................................................................................. 5 2.5 Written Notice .................................................................................................................. 5 2.6 Franchise Not Exclusive .................................................................................................. 6 2.7 Reservation of Rights ....................................................................................................... 7 2.8 Compliance ...................................................................................................................... 7 2.9 Binding Contract .............................................................................................................. 7 2.10 Customer Service Standards ............................................................................................ 8 SECTION 3. GENERAL REQUIREMENTS .......................................................................... 13 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Annual Franchise Fee .................................................................................................... 13 Liability Insurance ......................................................................................................... 14 Indemnification .............................................................................................................. 17 Security Fund and Performance Bond ........................................................................... 19 Procedure for Remedying Franchise Violations ............................................................ 20 Revocation .................................................................................................................... 22 Compliance with Applicable Laws and Ordinances ...................................................... 24 SECTION 4. SYSTEM CAPABILITIES .................................................................................. 24 4.1 4.2 4.3 4.4 4.5 4.6 System Capabilities ........................................................................................................ 24 Required Extensions of Cable System .......................................................................... 25 Periodic Evaluation, Review and Modification ............................................................. 26 Emergency Alert Capability .......................................................................................... 28 Closed Captioning and Descriptive Audio Service ....................................................... 28 Parental Control Lock .................................................................................................... 28 I TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT J 4.7 4.8 HDTV/ATV Conversion ................................................................................................ 29 Right of Inspection ......................................................................................................... 29 SECTION 5. SERVICES AND PROGRAMMING ................................................................. 29 5.1 Programming .................................................................................................................. 29 A. Broad Programming Categories ..................................................................................... 29 B. Deletion or Reduction of Programming Categories ....................................................... 30 5.2 Leased Commercial Access ........................................................................................... 30 5.3 Annual Reports .............................................................................................................. 30 SECTION 6. SUPPORT FOR LOCAL CABLE RELATED NEEDS .................................... 31 6.1 Institutional Network ........................................................................................................... 31 6.2 Public, Educational and Governmental Access ............................................................. 34 A. Access Channels ............................................................................................................ 34 B. Additional Access Channels .......................................................................................... 34 C. Unused Channels ........................................................................................................... 35 D. Non-Commercial Programming ..................................................................................... 36 E. Transition ....................................................................................................................... 36 F. Capital Support for Government Access ....................................................................... 37 G. Access Channel Designations .... 37 H. Ad Avail Grants ............................................................................................................. 37 I. Technical Quality ........................................................................................................... 37 6.3 Drops to Public Buildings .............................................................................................. 38 6.4 Use Of Grantee's Facilities ............................................................................................ 38 SECTION 7. REGULATION ..................................................................................................... 39 7.1 Franchise Regulation ..................................................................................................... 39 7.2 Force Majeure ................................................................................................................ 39 7.3 Severability .................................................................................................................... 39 7.4 Amendments .................................................................................................................. 40 EXHIBIT A: Franchise Fee Payment Worksheet. EXHIBIT B: I-Net Sites. TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT FRANCHISE RENEWAL AGREEMENT A CABLE TELEVISION FRANCHISE RENEWAL AGREEMENT BETWEEN TEXAS CABLE PARTNERS L.P.("Grantee'), AND THE CITY OF CORPUS CHRISTI, TEXAS ("City"), LOCATED IN THE COUNTY OF NUECES. WITNESSETH WHEREAS, the Grantee seeks to obtain a Cable Television Franchise Renewal Agreement under which it will be authorized to reconstruct, maintain, and operate a Cable Television System, as defined under applicable federal, state and local law, throughout the City of Corpus Christi, Texas; and WHEREAS, the City, pursuant to the Master Cable Service Regulatory Ordinance No. ___, as amended, is authorized to grant and renew one or more nonexclusive revocable Franchises to operate, construct, maintain and reconstruct a cable television system within the City of Corpus Christi, Texas; and WHEREAS, the City seeks to promote the development of cable television capabilities on a competitive basis within the City, while at the same time ensuring customer service; and WHEREAS, Grantee, has made application pursuant to the Master Cable Services Regulatory Ordinance and the applicable franchise renewal requirements of the Cable Act, to obtain a renewal of its Cable Service Franchise in the City of Corpus Christi, Texas, to reconstruct and operate a competitive Cable Service; and WHEREAS, the City, after due evaluation of Grantee's application and proposal for a Franchise Renewal, has determined that Grantee's proposal as modified under the terms of this TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT Agreement is complete and responsive to the requirements of the City, and has the requisite legal, technical and financial qualifications to meet the future cable related needs of the City; and NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein provided, and in accordance with the provisions of the City's Master Cable Services Regulatory Ordinance No. , , (hereinafter referred to as "Master Ordinance"), the parties agree as follows: SECTION 1. DEFINITIONS For the purpose of this Franchise, the terms, phrases, words, abbreviations and their derivations shall have the meaning given in the Master Ordinance, except as otherwise defined herein. The definitions in the Master Ordinance are made part of this Franchise as if fully set forth herein, except as otherwise specifically set forth herein. In the event of a conflict between the definitions in the Master Ordinance and the definitions set forth below, those definitions set forth in this Agreement shall control. 1.1 "Channel" means a portion of the electromagnetic frequency spectrum which is used in a Cable System and which is capable of delivering a television cham~el, as television channel is defined by FCC regulation. The current industry standard for an analog Channel is 6 MHz. 1.2 "Commercial Pro~rammlng" means any programming which is cablecast for remuneration of any kind, whether directly or indirectly, or programming which includes, in whole or in part, content whether audio, video or text intended, directly or indirectly to promote any service, product or political candidate; or includes commercial advertising of any kind; or contains lottery or sweepstakes information. 2 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 1.3 1.4 1.5 1.6 "Effective Date". means the date set forth in Section 2.3 of this Agreement. "Franchise Fee" means any tax, fee or assessment of any kind imposed by City or other governmental entity on Grantee or a cable subscriber, or both, solely because of their status as such. The term "Franchise Fee" does not include: (i) any tax, fee or assessment of general applicability (including any such tax, fee or assessment imposed on both utilities and cable operators or their services but not including a tax, fee or assessment which is unduly discriminatory against cable operators or cable Subscribers); (ii) capital costs which are required by the Franchise Agreement to be incurred by Grantee for PEG Access equipment and facilities; (iii) requirements or charges incidental to the award or enforcement of a Franchise, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties or liquidated damages; or (iv) any fee imposed under title 17, United States Code. "Grantee" means Texas Cable Partners, L.P. or its lawful successors, transferees, or assigns. "Gross Revenues" shall be as defined in the Master Ordinance except for the purposes of this Agreement and the Grantee's obligations hereunder the term Gross Revenues shall not include: (A) any amount collected by the Franchisee from Subscribers for PEG Access purposes; (B) the revenues of any Person where such revenues have been included in Grantee's revenues so as to preclude double imposition of franchise fees; or 3 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT (C) bad debt or uncollected amounts. 1.7 "Locally Produced Programming" means programming taped in the Corpus Christi region, or pertaining to locally specific issues, or pertaining to local residents. 1.8 "Normal Business Hours" means those hours during which most similar businesses in the community are open to serve customers. In all cases, "normal business hours" must include some evening hours at least one night per week and/or some weekend hours. 1.9 "Normal Operating Conditions" means those service conditions which are within the control of the Grantee. Those conditions which are not within the control of the Grantee include, but are not limited to, natural disasters, civil disturbances, power outages, telephone network outages, and severe or unusual weather conditions. Those conditions which are ordinarily within the control of the Grantee include, but are not limited to, special promotions, pay-per-view events, rate increases, regular peak or seasonal demand periods, and maintenance or upgrade of the Cable System. 1.10 "Service Interruption" means the loss of picture or sound on one or more cable channels. SECTION 2. GRANT OF FRANCHISE RENEWAl, 2.1 Grant of Renewal. The cable television franchise granted to TCI Cablevision, Inc., and now held by Grantee, is hereby renewed, subject to the terms and conditions of this Franchise Agreement (hereinafter also referred to as the "Franchise"). The grant of renewal provides Grantee authority, right and privilege, to construct, reconstruct, operate and 4 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT maintain a Cable Television System within the Right-of-Way in the City of Corpus Christi, Texas, as it is now or may in the future be constituted. 2.2 Right of City to Issue and Renew Franchise Grantee acknowledges and accepts the right of City to issue and/or renew a Franchise Agreement. 2.3 Effective Date of Grant of Renewal. The grant of renewal shall be effective sixty (60) days following passage and approval of this Agreement by ordinance of the City Council. The grant is further contingent upon the filing by Grantee with the City Secretary of the executed Franchise Agreement and the required security fund and insurance certificates, and has paid all sums owed to the City, except that if the filing of the written acceptance, the security fund or any such insurance certificate does not occur within sixty (60) days after the Effective Date of the ordinance approving this Franchise and any extension of time hereunder, the City may declare this grant null and void. 2.4 Term. A. This Franchise shall commence upon its Effective Date and shall expire fifteen (I 5) years thereafter or tmless extended, renewed, revoked or terminated sooner as provided for in the Master Ordinance or pursuant to the specific terms of this Franchise Agreement. 2.5 Written Notice. All notices, reports or demands required to be given in writing under this Franchise 'Agreement shall be deemed to be given when delivered personally to the Person designated below, or upon receipt when sent by registered or certified mail, postage 5 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT ] prepaid thereon, or on the next business day if sent by express mail or overnight courier addressed to the party to which notice is being given, as follows: 2.6 Ifto City: City Corpus Christi Attention: City Manager 1201 Leopard Street Corpus Christi, Texas 78401-2825 With a copy to: City of Corpus Christi Attention: City Attorney 1201 Leopard Street Corpus Christi, Texas 78401-2825 I f to Grantee: Texas Cable Partners, L.P. Attn: General Manager 4060 South Padre Island Drive Corpus Christi, Texas 78411 With copy to: Texas Cable Partners, L.P. Attn: Division President 300 Parker Square, Suite 210 Flower Mound, Texas 75028 Such addresses may be changed by either party upon notice to the other party given as provided in this Section. Franchise Not Exclusive The Franchise herein granted shall be non-exclusive and is granted by the City pursuant to the City's Master Cable Services Regulatory Ordinance and applicable law. Unless expressly prohibited by law, any additional franchise granted by the City pursuant to the Master Cable Services Regulatory Ordinance, subsequent to the date of this Franchise, shall, when considered as a whole, contain no more favorable or less burdensome terms and conditions than those contained herein. In instances where Grantee or City believes that replication of a requirement would provide an unintended result, the parties (i.e., the 6 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT City, Grantee and proposed Grantee), shall meet to negotiate a substitute obligation to ensure parity of obligations on the part of all grantees. Any alleged failure on the part of the City to ensure parity of obligations shall entitle Grantee to review by the City's governing body and such other remedies it may be entitled to under applicable state and federal law. 2.7 Reservation of Rights. City and Grantee reserve all rights that they may possess under applicable law or be granted in the future under applicable law unless expressly waived herein. Unless expressly noted otherwise, nothing set forth in the Master Ordinance or this Franchise Agreement shall be construed as a waiver, stm'ender or release of any right of any kind whatsoever by either City or Grantee. 2.8 Compliance The provisions of the Master Ordinance are hereby incorporated herein by reference as if set out in full, and form part of the terms and conditions of this Franchise Agreement, except as may be otherwise provided in the Franchise Agreement. In the event of a conflict between the terms and conditions of the Master Ordinance and this Franchise Agreement, the Franchise Agreement shall control. Grantee agrees to comply with the terms of the Master Ordinance and any lawfully adopted, generally applicable local ordinance that is passed pursuant to the City's lawful police powers. 2.9 Binding Contract. This Franchise (including all of Grantee's particular rights, powers, protections, privileges, immunities and obligations associated therewith) shall constitute a legally binding contract between the City and Grantee, and as such, cannot be amended, 7 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 2.10 modified or changed by the City without the consent of Grantee in any manner whatsoever, whether by ordinance, role, regulation or otherwise, to impose on Grantee more stringent or burdensome requirements or conditions; provided, however, that nothing herein contained shall preclude the City from the proper exercise of its police powers, as set forth in Section 2.8. Customer Service Standards. A. Notwithstanding anything to the contrary in the Master Ordinance, the Grantee is hereby exempted from Article 7 of the Master Ordinance and in lieu thereof shall be subject to the following: 1. Cable System office hours and telephone availability. (a) The Grantee will maintain a local, toll-free or collect call telephone access line which will be available to its subscribers 24 hours a day, seven days a week. (b) Trained Grantee representatives will be available to respond to customer telephone inquiries during Normal Business Hours. (c) After Normal Business Hours, the access line may be answered by a service or an automated response system, including an answering machine. Inquiries received after Normal Business Hours must be responded to by a trained Grantee representative on the next business day. (d) Under Normal Operating Conditions, telephone answer time by a customer representative, including wait time, shall not exceed thirty (30) seconds when the connection is made. If the call needs 8 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT to be transferred, transfer time shall not exceed thirty (30) seconds. These standards shall be met not less than ninety (90) percent of the time under Normal Operating Conditions, measured on a quarterly basis. (e) The Grantee will not be required to acquire equipment or perform surveys to measure compliance with the telephone answering standards above unless an historical record of complaints indicates a clear failure to comply. (f) Under Normal Operating conditions, the customer will receive a busy signal less than three (3) percent of the time. (g) Customer service center and bill payment locations will be open at least during Norn~al Business Hours and will be conveniently located. Installations, outages and service calls. Under Normal Operating Conditions, each of the following standards will be met no less than ninety-five (95) percent of the time measured on a quarterly basis: (a) Standard installations will be performed within seven (7) business days after an order has been placed. "Standard" installations are those that are located up to 125 feet from the existing distribution system. (b) Excluding conditions beyond the control of the Grantee, the Grantee will begin working on "Service Interruptions" promptly 9 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT ] and in no event later than 24 hours after the interruption becomes known. The Grantee must begin actions to correct other service problems the next business day after notification of the service problem. (c) The "appointment window" alternatives for installations, service calls, and other installation activities will be either a specific time or, at maximum, a four-hour time block during Normal Business Hours. The Grantee may schedule service calls and other installation activities outside of Normal Business Hours for the express convenience of the customer. (d) The Grantee may not cancel an appointment with a customer after the close of business on the business day prior to the scheduled appointment. (e) If a Grantee representative is running late for an appointment with a customer and will not be able to keep the appointment as scheduled, the customer will be contacted. The appointment will be rescheduled, as necessary, at a time which is convenient for the customer. Communications between the Grantee and Subscribers. (a) Notifications to Subscribers. (i) The Grantee shall provide written information on each of the following areas at the time of installation of service, at 10 [ TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT (b) least annually to all Subscribers, and at any time upon request: (A) Products and services offered; (B) Prices and options for programming services and conditions of subscription to progratnming and other services; (C) Installation and service maintenance policies; (D) Instructions on how to use the cable service; (E) Channel positions of progranuning carded on the Cable System; and (F) Billing and Complaint procedures, including the address and telephone number of the City's office. Subscribers will be notified of any changes in rates, programming services or channel positions as soon as possible in writing. Notice must be given to Subscribers a minimum of thirty (30) days in advance of such changes if the change is within the control of the Grantee. In addition, the Grantee shall notify Subscribers thirty (30) days in advance of any significant changes in the other information required by paragraph 3(a)(i) of this section. Notwithstanding anything in this Section to the contrary, the Grantee shall not be required to provide prior notice of any rate change that is the result of a regulatory fee, franchise fee, or any other fee, tax, assessment, or charge of any kind imposed by any 11 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT (c) Federal agency, State or the City on the transaction between the Grantee and the Subscriber. Billing. (i) Bills will be clear, concise and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. (ii) In case of a billing dispute, the Grantee must respond to a written complaint from a Subscriber within thirty (30) days. (d) Refunds. Refund checks will be issued promptly, but no later than either- (i) The customer's next billing cycle following resolution of the request or thirty (30) days, whichever is earlier, or (ii) The return of the equipment supplied by the Grantee if service is terminated. (e) Credits. Credits for service will be issued no later than the customer's next billing cycle following the determination that a credit is warranted. In the event of a record of written complaints filed with the City indicating a clear failure on the part of the Grantee to comply with those standards set forth in this Section 2.10, the City may request that the Grantee report quarterly on its 12 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT performance against those standards in this Section 2.10. If Grantee fails to meet all of the standards set forth in the Section 2.10 for three (3) consecutive quarters, the Grantee shall thereafter be subject to the Customer Service Standards set forth in the Master Ordinance at Article 7 until such time as the Grantee has met the standards set forth in this Section 2.10 for three (3) consecutive quarters. At such time as Grantee is in compliance with this Section 2.10 for three (3) consecutive quarters, the Grantee shall thereafter be subject to the requirements of this Section 2.10, subject to the City's ongoing compliance rights. C. Grantee shall at all times comply with the Federal Communications Commission (FCC) Rules and Regulations, Part 76, Subpart K (Technical Standards), as may be amended from time to time, to the extent permitted by applicable law. Upon request, the Grantee shall furnish the City Manager a copy of its annual proof of performance filing with the FCC. If the FCC no longer establishes technical standards, this Franchise shall control and the then-current FCC standards shall, at a minimum, be made part of this Franchise and enforceable by the City. SECTION 3. GENERAL REQUIREMENTS 3.1 Annual Franchise Fee. A. As compensation for this Franchise and in consideration of permission to use the Right-of-Way of the City for the construction, operation, maintenance and reconstruction of the Cable System, and to defray the costs of Franchise obligations, Grantee shall pay to the City on an annual basis throughout the term of this Franchise, a sum totaling five percent (5%) of Grantee's Gross Revenues. 13 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 3.2 B. Payments due the City under this Section shall be computed quarterly, for the preceding quarter of each year during the term of this Franchise. Each quarterly payment shall be due and payable no later than forty-five (45) days after the end of the preceding quarter. The City and Grantee shall discuss the feasibility of such payments being made electronically to a financial institution designated by the City. Verification of any electronic payments shall be provided to the City Treasurer. Each payment shall be accompanied by a brief report showing the basis for the computation and other relevant facts and information, and a "Franchise Fee Payment Worksheet," attached as Exhibit A, which shall accurately reflect the sources of all Gross Revenues. C. No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall such acceptance of payment be construed as a release of any claim the City may have for further sums payable under the provisions of this Franchise. All amounts paid shall be subject to audit and re-computation by the City or its designee, at any time during any calendar year upon reasonable notice and specification of the documents requested to be reviewed. Grantor's right to audit, and Grantee's obligations to retain records related to the franchise fee audit, shall expire two (2) years from the date on which each Franchise Fee payment by the Grantee is due. Liability Insurance. A. Upon the effective date of this Franchise Agreement, the Grantee shall, at its sole expense, take out and maintain during the life of this Franchise commercial general liability insurance with a company licensed to do business in the State of 14 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT Texas with a rating by Best of not less than "A-" that shall protect the Grantee, the City, and the City's officials, officers, and employees from claims which may arise from Grantee's operations under this Franchise, whether such operations are by the Grantee, its officers, directors, employees and agents, or any subcontractors of Grantee. This liability insurance shall include, but shall not be limited to, protection against claims arising from bodily and personal injury and damage to property, resulting from all Grantee operations, products, services or use of automobiles, or construction equipment. The amount of insurance for Single Limit Coverage applying to Bodily and Personal Injury and Property Damage shall be two million dollars ($2,000,000.00) Combined Single Limit Coverage, and evidence of excess coverage. The following endorsements shall attach to the liability policy: (1) The policy shall cover Personal Injury as well as Bodily Injury. (2) The policy shall cover blanket contractual liability subject to the standard universal exclusions of contractual liability included in the carrier's standard endorsement as to bodily injuries, personal injuries and property damage. (3) Broad Form property damage liability shall be afforded. (4) The City shall be named as an additional insured on the policy. (5) An endorsement shall be provided which states that the City is listed as an additional insured. (6) Standard form of cross-liability shall be afforded. 15 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT (7) An endorsement stating that the policy shall not be cancelled, or materially modified so as to be out of compliance with the requirements of this section, or not renewed without thirty (30) days advance written notice of such event being given to the City Manager. Grantee shall not permit any subcontractor to commence or continue work until both shall have obtained or caused to be obtained all insurance required under this Section. Said insurance shall be maintained in full force and effect until the completion of construction. Grantee shall obtain and maintain Workers' Compensation Insurance for all Grantee's employees, and in case any work is sublet, Grantee shall require any subcontractor similarly to provide Workers' Compensation Insurance for all subcontractor's employees, all in compliance with State laws, and to fully protect the City from any and all claims arising out of occurrences on the work. Grantee hereby indemnifies City for any damage resulting to it from failure of either Grantee or any subcontractor to take out and maintain such insurance. Grantee shall provide the City Manager with a certificate of insurance indicating Workers' Compensation coverage prior to commencing reconstruction of the system. The City reserves the right to adjust the limit coverage requirements on the basis of rate index tied to changes in the Consumer Price Index over the life of the Franchise. Insurance certificates and evidence of payment are subject to review and approval of the City for compliance with these requirements. Grantee shall submit to the City a certificate of insurance signed by the insurance agent and companies named. 16 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 3.3 E. Any deductible or self-insured retention must be declared to City Manager. Indemnification. A. Except as otherwise provided herein, Grantee shall indemnify, hold harmless, release and defend City, its officers, and employees from and against any and all lawsuits, claims, actions, demands, damages, disability, losses, expenses including reasonable attorney's fees and other defense costs or liabilities of any nature that may be asserted by any Person or entity, including Grantee, from any cause whatsoever, arising out of or in any way connected with the activities of Grantee, its subcontractor, employees and agents hereunder. Grantee shall be solely responsible and save City harmless from all matters relative to payment of Grantee's employees including compliance with Social Security, withholdings, etc. B. This indemnification obligation is not limited in any way by a limitation of the amount or type of damages or compensation payable by or for Grantee under Workers' Compensation, disability or other employee benefit acts, acceptance of insurance certificates required under this Franchise, or the terms, applicability or limitations of any insurance held by Grantee. C. City does not, and shall not, waive any rights against Grantee which it may have by reason of this indemnification, because of the acceptance by City, or the deposit with City by Grantee, of any of the insurance policies described in this Franchise. D. This indemnification by Grantee shall apply to all damages and claims for damages of any kind suffered by reason of Grantee's actions, regardless of 17 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT whether or not such insurance policies shall have been determined to be applicable to any such damages or claims for damages. Grantee shall not be required to indemnify City for damages arising from the negligence or malfeasance of the City or its officials, boards, commissions, agents, or employees. Grantee shall immediately notify the City Risk Manager of any and all claims raised against the Grantee or Grantee and City jointly, and shall provide the City with a copy of the same. In order for the Grantor to assert its rights to be indemnified and held harmless, the Grantor must: 1) Promptly notify Grantee of any claim or legal proceeding which gives.rise to such right; 2) Afford Grantee the opportunity to participate in and fully control any compromise, settlement, resolution or disposition of such claim or proceeding; and 3) Fully cooperate in the defense of such claim and make available to Grantee all such information under its control relating thereto. If the City determines that it is necessary for it to employ separate counsel, the costs for such separate counsel shall be the responsibility of the City. Grantee shall indemnify, defend and hold harmless the City, its officers, agents and employees against any and all claims or challenges brought against the City with respect to the validity of the terms and conditions of this Franchise renewal grant. 18 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT j 3.4 I. The fact that Grantee carries out any activities under this Franchise through independent contractors shall not constitute an avoidance of or defense to Grantee's duty of defense and indemnification under this section. Security Fund A. Grantee shall deposit into a bank account established by the City and maintain on deposit through the term of this Franchise, the sam of one hundred thousand dollars ($100,000.00), or provide the City with performance bond in the same amount, as a security ("Security Fund") for the faithful performance by it of all the provisions of this Franchise, and compliance with all orders, permits and directions of the City, and the payment by Grantee of any claim, liens and taxes due the City which arise by reason of the construction, operation or maintenance of the Cable System. Interest accrued on this deposit, if any, shall remain with the deposit as additional security unless, after periodic review, the City determines, in its sole discretion, to rebate all or part of the accrued interest or to reduce the required amount of such Security Fund. Provision shall be made to permit the City to withdraw funds from such Security Fund as and to the extent permitted by this Franchise. Grantee shall not use such Security Fund for other purposes and shall not assign, pledge or otherwise use this Security Fund as security for any purpose. B. The Security Fund may be drawn on by City for those purposes specified in Section 3.6 hereof. Any such draw shall be conducted according to the procedures of Section 3.6, as the case may be, provided that Grantee has received 19 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 3.5 written notice and thirty (30) days after receipt of notice to cure any material violations before any payment. C. Within thirty (30) days after notice to Grantee that any amount has been withdrawn by the Grantee from the Security Fund pursuant to Section 3.6, Grantee shall deposit a sum of money sufficient to restore such Security Fund (or bond level) to its original amount. D. Nothing herein shall be deemed a waiver of the normal permit and bonding requirements made of all Persons working within the City's Rights-of-Way. E. Maintenance of the requisite Security Fund shall not in any way limit the liability of the Grantee for any failure to fully perform its obligations under this Franchise Agreement. Procedure for Remedying Franchise Violations. A. Notwithstanding any provision in the Master Ordinance, if the City believes that the Grantee has failed to perform any obligation under the Master Ordinance or this Agreement, or has failed to perform in a timely manner the City shall first informally discuss the matter with the Grantee. If these discussions do not lead to resolution of the problem, the City shall then notify Grantee of the violation in writing by personal delivery or registered or certified mail, stating with reasonable specificity the nature of the alleged violation, and demand correction within a reasonable time, which shall not be less than twenty (20) days in the case of the failure of the Grantee to pay any sum or other amount due the City under this Franchise or the Master Ordinance, and thirty (30) days in all other cases. If Grantee fails to correct the violation within the time prescribed, or if Grantee is 20 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT unable to correct the violation or fails to commence corrective action within the time prescribed and to diligently remedy such violation thereafter, the Grantee shall then be given a written notice of not less than twenty (20) days of a public hearing to be held before the City Council. Said notice shall specify the time, and place of such hearing, and shall specify the violations alleged to have occurred. At the public hearing, the Council shall provide Grantee due process. The Council shall hear and consider all relevant evidence and thereafter render written findings of fact and a decision based upon the evidence. In the event the Council finds that Grantee has corrected the violation or has diligently commenced correction of such violation after notice thereof from City and is diligently proceeding to fully remedy such violation, or that no material violation has occurred, the proceedings shall terminate and no penalty or other sanction shall be imposed. In determining whether a violation is material City shall take into consideration the reliability of the evidence of the violation, the nature of the violation and the damage, if any, caused to the City or the City's residents thereby, whether the violation was chronic, any justifying or mitigating circumstances, and such other matters as the City may deem appropriate. In the event the Council finds that a material violation exists and that Grantee has not corrected the same in a satisfactory manner or has not diligently commenced correction of such violation, the Council may impose liquidated damages, payable from the Security Fund, of up to five hundred ($500.00) per day or per incident, for major construction or safety violations or unexcused violations of the System 21 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 3.6 construction schedule provided in Section 4.1 herein, and up to three hundred dollars ($300) per day or per incident for all other violations where a remedy is not otherwise specified. Grantee may appeal any such damages before a court of competent jurisdiction. F. If Grantor elects to assess liquidated damages, then such election shall constitute Grantor's exclusive remedy for a period of sixty (60) days. Thereafter, if the Grantee remains in non-compliance, the Grantor may pursue any other available remedy. G. Repeated violations, whether remedied or not, may result in special notice by the City outlining further remediation requirements, including Franchise revocation action pursuant to the procedures set forth below. Revocation. Any revocation proceedings shall be conducted as set forth herein. A. In addition to any rights in this Franchise Agreement, Grantor reserves the right to revoke the Franchise, and all rights and privileges pertaining thereto in the event that the Grantee: (1) Substantially violates a material provision of the Franchise Agreement; (2) Attempts to evade any material provision of this Franchise Agreement, or to practice fraud or deceit upon the City or Subscribers; or (3) Becomes insolvent, unable or unwilling to pay its debts, or is adjudged bankrupt. B. Should the Grantor seek to revoke the Agreement after following the procedures set forth above in Subsection 3.6, Grantor shall first notify the Grantee in writing of its basis for believing grounds for revocation exist. Such notice shall indicate 22 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT with reasonable specificity the grounds for revocation that are believed to exist so that the Grantee may have a reasonable opportunity to cure or otherwise address the grounds. If the Grantee fails to adequately cure or address the purported grounds for revocation within thirty (30) days of such notice, then the Grantor may, upon thirty (30) days written notice to the Grantee, commence a public administrative hearing to determine whether there exists ground for revocation. The administrative hearing shall be conducted so as to protect the full due process rights of the parties and provide for, at a minimum, the right to be represented by counsel, the right to introduce relevant evidence, the right to require the production of evidence, the right to call and cross examine witnesses, and the right to have the matter heard before a mutually agreed upon third party heating officer. A complete transcript shall be made of such hearing. After the close of the hearing, the party who conducted the heating, (the Grantor or the designated hearing officer) shall issue a written decision based on the record of the proceedings, stating with specificity the findings and reasons supporting the decision, and shall transmit a copy of the decision to the Grantee and the Grantor. If the decision is rendered by a third party hearing officer, Grantor may accept, reject, or modify the decision of the hearing officer and shall issue a written statemem setting forth its decision to accept, reject, or modify the decision, and the reasons therefore. Grantee shall have a period of sixty (60) days subsequent to the date of the final decision by the City within which to file an appeal with a court of competent jurisdiction. 23 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT F. During the appeal period, the Franchise shall remain in full force and effect. 3.7 Compliance with Applicable Laws and Ordinances. A. Grantee shall conform to all generally applicable laws, rules and regulations of the United States and the State of Texas in the construction and operation of its Cable System and all generally applicable rules and regulations of the FCC. B. Grantee shall not refuse to hire or employ nor bar nor discharge from employment nor discriminate against any person in compensation or terms, conditions or privileges of employment because of age, race, creed, color, national origin or sex. C. Any right, power, protection, privilege or immunity which is provided, granted or imposed on Grantee under or by virtue of the Cable Act, as may be amended or interpreted from time to time after the date hereof, shall remain inviolate and shall be available to Grantee notwithstanding any contrary provision of this Franchise, and the acceptance of the terms and conditions of the Master Ordinance and this Franchise Agreement shall not be construed as a waiver or release by Grantee or City of any right, power, protection, privilege, immunity or obligation under the Cable Act, the laws or Constitution of the United States or the laws and Constitution of the State of Texas. SECTION 4. SYSTEM CAPABILITIES 4.1 System Capabilities Grantee shall complete construction and activate its upgraded and rebuilt Cable System within the thirty-six (36) months of the Effective Date of this Agreement, which shall, at a minimum, provide the capabilities of a 750 MHz hybrid fiber optic-coaxial system 24 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT J 4.2 architecture to all residential areas of the City having a density of thirty (30) homes per cable mile. Required Extensions of the Cable System. A. Whenever the Grantee receives a request for Cable Service from a Subscriber in a contiguous area unserved by the Grantee where there are at least thirty (30) residences within one cable mile from the nearest usable portion of the Grantee's trunk or distribution cable which is to be extended, it shall extend its Cable System to such Subscribers at no cost to said Subscribers for the Cable System extension, other than the published Standard/non-Standard Installation fees charged to all Subscribers. Notwithstanding the foregoing, the Grantee shall have the right, but not the obligation, to extend the Cable System, into any annexed area which is not contiguous to the present service area of the Grantee, or into any area in which Grantee determines it to be financially or technically feasible to serve. B. No Subscriber shall be refused service arbitrarily. However, if an area does not meet the density requirements of subsection 4.2 A above, the Grantee shall only be required to extend the Cable System to Subscriber(s) in that area if the Subscriber(s) are willing to share the capital costs of extending the Cable System. Specifically, the Grantee shall contribute a capital amount equal to the construction cost per mile, multiplied by a fraction whose numerator equals the actual number of residences per cable mile from the nearest usable point in the Grantee's trunk or distribution cable, and whose denominator equals 30. Subscribers who request service hereunder shall bear the remaining cost to extend 25 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 4.3 the Cable System on apro rata basis. The Grantee may require that payment of the capital contribution in aid of construction borne by such potential Subscribers be paid in advance. Subscribers shall also be responsible for any Standard/non- Standard Installation charges to extend the Cable System from the tap to the residence. Periodic Evaluation, Review and Modification. Grantor and Grantee acknowledge and agree that the field of cable service is a relatively new and rapidly changing one that may experience many regulatory, technical, financial, marketing and legal changes during the term of this Franchise Agreement. Therefore, to provide for the maximum degree of flexibility in this Franchise Agreement, and to help achieve a continued, advanced and modem Cable System, the following evaluation and review provisions will apply: A. The City may request evaluation and review sessions at any time after two (2) years from the Effective Date and each four (4) years thereafter during the term of this Agreement and Grantee shall cooperate in such review and evaluation; provided, however, that there shall not be more than one (1) evaluation and review session during any calendar year. B. Topics which may be discussed at any evaluation and review session include, but are not limited to, rates, channel capacity, System performance, programming, Cable Intemet Service access, PEG access, local office, technology, trends in industry, changes in the multichannel video business, municipal uses of cable, Subscriber complaints, judicial rulings, FCC rulings and any other relevant topics that may arise. 26 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT During an evaluation and review session, Grantee shall fully cooperate with the City and shall provide without cost such reasonable information and documents as the City may reasonably request to perform the evaluation and review. If at any time during the evaluation and review, the City reasonably believes there is evidence of inadequate technical performance of the Cable System, the City may require Grantee, at Grantee's expense, to perform appropriate tests and analyses directed toward such suspected technical inadequacies. In making such request, the City shall describe and identify as specifically as possible the nature of the problem. Grantee shall cooperate fully with the City in performing such tests and shall report to the City the results of the tests, which shall include at least: (1) A description of the problem in System performance which precipitated the special tests; (2) The System component tested; (3) The equipment used and procedures employed in testing; (4) The method, if any, by which the System performance problem was resolved; (5) If the Grantees actions fail to properly identify and resolve the problem the Grantor shall have the right to request alternative tests; and (6) Any other information pertinent to said tests and analyses. As a result of an evaluation and review session, Grantee and the City shall, in good faith, review the terms of any proposed change and any proposed 27 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 4.4 4.5 4.6 amendment to this Franchise Agreement and seek to reach agreement on such change or amendment. F. The City and Grantee shall act in good faith during such negotiations and shall be obligated to agree to the reasonable requests of the other party for changes in the System or amendment to the Franchise Agreement when the change or amendment: is not inconsistent with the other terms of the Franchise Agreement or with applicable law or regulations, and; is technically feasible and economically reasonable, and; will not result in a material alteration of the rights and duties of the parties under the Franchise Agreement. Emergency Alert Capability. Grantee shall at all times com~ply with the FCC's Emergency Alert System rules and regulations. In the event the FCC rules are repealed then the Grantee shall, within 90 days of a request from the City, provide the City with the capability to override the audio on all channels for the purpose of cablecasting emergency announcements. Closed Captionine and Descriptive Audio Service. Grantee will make audio descriptive service and closed captioning capabilities available to the extent required by state and federal law. Parental Control Lock. Upon the request of a Subscriber, Grantee shall provide Subscribers a device by which the Subscriber can prohibit viewing of a particular cable service during periods selected by that Subscriber. Such device shall be provided for sale or lease at a reasonable charge unless otherwise required under applicable federal law. The Grantee may in all instances impose a reasonable security deposit requirement for the use of such devices. 28 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 4.7 HDTV/ATV Conversion. Conversion to High Definition Television/Advanced Television (HDTC/ATV) formats shall occur in accordance with applicable law. 4.8 Right of Inspection. Subject to protection of Subscriber privacy, City shall have the right to inspect all construction, reconstruction or installation work performed by Grantee under the provisions of the Franchise and its general police powers, to ensure Grantee's compliance with the Franchise and to protect the public health, safety and welfare of City's citizens. Except in emergency situations, City shall provide Grantee with reasonable advance notice and Grantee shall have the right to be present at such inspection. SECTION 5. SERVICES AND PROGRAMMING 5.1 Programming. A. Broad Programming Categories. Grantee shall provide or enable the provision of at least the following Initial broad categories of Programming, unless otherwise required by state or federal law: (1) (2) (3) (4) (5) (6) (7) (8) Educational programming; News & information; Sports; General entertainment (including movies); Children/family-oriented; Arts; culture and performing arts; Spanish Language; Science/documentary; 29 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 5.2 5.3 (9) Weather information; (10) Government affairs; and (11) Business/Financial Programming. B. Deletion or Reduction of Programming Categories. (1) Grantee shall not delete or change the mix, level, or quality of programming and services, or so limit as to effectively delete any broad category of Programming identified in Section 5.1 .A and within its control without complying with the modification procedures required under federal law, including notice requirements. (2) Any modification proceeding shall be in accordance with applicable law. Leased Commercial Access. Grantee shall make available to the public in a manner consistent with 47 U.S.C. §532 and associated FCC Rules and Regulations, a Channel or portion of a Channel of the Cable System for commercial use by Persons other than Grantee, for a fee or charge Annual Reports. This Section shall supercede the applicable Annual Report requirement of the Master Ordinance. A. Upon request, Grantee shall make available to Grantor, at the end of each calendar year during the term of a Franchise Agreement, the following: (1) A revenue statement certified by a representative of the Grantee showing, in accordance with a Franchise Agreement, the Gross Revenues of the Grantee for the preceding fiscal year; 30 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT j (2) A current list of names and addresses of each officer and director and other management personnel of the Grantee; (3) A copy of all documents that relate to the Grantee's System that were filed with any federal, State, or local agencies during the preceding fiscal year and that were not previously filed with Grantor; (4) A statement of the Grantee's current billing practices and charges; (5) A copy of the Grantee's current Subscriber Service contract; and (6) A copy of Annual Reports to stockholders, if any, for operating company and parent company. B. All of the above information shall not be required annually unless there is a change after the first filing. SECTION 6. SUPPORT FOR LOCAL CABLE RELATED NEEDS 6.1 Institutional Network. A. Grantee shall provide two (2) strands of dark fiber between those sites listed on Exhibit "B" and the nearest existing City fiber cable route (the "I-Net") within twenty-four (24) months of the Effective Date. All splicing (at both those sites listed on Exhibit "B" and at the nearest existing City fiber cable) shall be the responsibility of the City. Grantee shall provide up to two (2) strands of dark fiber to other sites upon the City's request and at the City's cost for time and material, including overhead, up to a total of 20 strand miles. B. Grantee shall maintain the continuity of the I-Net fiber up to the demarcation point at each site. The demarcation point shall be defined as the "pigtail" point 31 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT (consisting of a loop of fiber not to exceed 150 feet) of the Grantee's fiber strands at each of the points described more fully at (A.) above. There will be one (1) demarcation point at each of the sites listed in Exhibit "B" and a corresponding demarcation point at the nearest existing City fiber. The City shall be responsible for any and all connections between the demarcation point and the City locations and for providing any and all equipment necessary to light or to otherwise use the I-Net. Any and all customer premise equipment shall be the sole responsibility of the City. Grantee shall have no obligation with respect to any customer premise equipment. The 1-Net shall be operated and utilized by the City as a closed-circuit system. The I-Net shall not be used to transmit or receive any conununication (in whatever form, whether video, audio, data, voice or otherwise) destined to or originating from any other network, switched or otherwise, including without limitation the facilities of any local or long-distance telephone company except on terms and conditions acceptable to the City and Grantee. In the event the City does use the I-Net to transmit or receive any communication destined to or originating from any other network (switched or otherwise) without the express, written agreement of the Grantee, then the Grantee may pursue any and all remedies available to the Grantee under applicable law including, but not limited to, terminating the I-Net or imposing a usage fee pursuant to paragraph "K" below. 32 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT ] The City and the Grantee recognize and understand that the lighting of the dark fiber and the subsequent use of the I-Net may subject the Grantee to increased fees or taxes including, but not necessarily limited to, pole attachment fees. The City shall indemnify and reimburse the Grantee for any increased fees or taxes incurred by the Grantee due to or arising out of the City's use of the I-Net. The City shall indemnify, defend and hold the Grantee harmless for any action arising out of or due to the City's use of the I-Net. Because Grantee owns the I-NET between demarcation points, the City shall not convey, lease, assign, sublet, sell or dispose of the I-Net or related capacity, in whole or in part, in any way to any Person. The I-Net and related capacity is for the City's exclusive, non-commercial governmental use for the duration of the Franchise. Except as provided in paragraph "E" above, the City shall not be subject to a usage fee of the I-Net, so long as any other franchised cable operator is meeting its I-Net requirements, as those requirements existed as of the date of the Franchise. In the event any other franchised cable operator is not meeting its I- Net obligations, the Grantee may, following sixty (60) days notice to the City of such failure and the City's failure to rectify the disparity, impose a usage fee pursuant to paragraph "K" below. In the event a usage fee is imposed hereunder the usage fee shall be paid for the usage of the I-Net capacity and maintenance of outside plant. The usage fee will be equal to the average rate charged by at least three (3) land-line providers in the City for equivalent capacities of bandwidth being provided on the I-Net (the 33 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT "Average Rate"). If there are only two (2) providers in the City, the usage fee will be an amount equal to the Average Rate offered for identical services by the two (2) providers. If there is only one provider in the City, the usage fee will be an amount equal to the rate for identical services offered on a non-discriminatory basis by the provider. The usage fee will be adjusted annually to reflect changes in the City. The usage fee shall never be less than Grantee's cost. K. To the extent that the Grantee offers its own cable modem service, the Grantee shall make such service available to any City owned facility, otherwise receiving Cable Service from the Grantee, at a rate equal to twenty percent (20%) off the applicable commercial rate card rate charged by Grantee. The City's use of the service shall be subject to the same terms, conditions and limitations placed on all commercial customers. 6.2 Public, Educational and Governmental Access. A. Access Channels. Grantee shall offer the following channels to each of its Subscribers as part of the Basic Service. (1) Public Access - Two (2) specifically designated Channels for non- commercial public access use. (2) Local Educational Access -- One (1) specifically designated Channel for non-commercial local educational access use by City-designated users. (3) Government Access -- One (1) specifically designated Channel for non- commercial use by the City. B. Additional Access Channels. Upon demonstration that an Access Channel is in use with locally produced audio-video programming (not character-generated 34 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT programming) during the weekdays (Monday-Friday), for seventy-five pemem (75%) of the time, twenty-four (24) hours per day for twelve (12) consecutive weeks, and there is a request or demand for use of an additional Channel for the same purposes, Grantee shall, upon receipt of written request from the City, have six (6) months in which to provide an additional Access Channel dedicated for the same purpose, provided that the provision of such additional Channel(s) shall not require the Grantee to install Converters. In calculating use of the Public, Educational and Governmental programming: 1. Character generated programming shall not be included. 2. For Public and Educational Access programming purposes repeat programming shall not be counted. 3. For Government Access programming purposes, repeat programming shall be counted only in the first week of the original cablecast for weekly programming up to a maximum of three (3) airings; and only in the first month of the original cablecast for monthly programming up to a maximum of four (4) airings. 4. For Educational and Government Access programming purposes, only Locally Produced Programming shall be counted. Notwithstanding anything to the contrary, however, no more than two (2) channels shall be made available for Public Access and no more than a total of six (6) channels shall be made available for PEG Access combined. Unused Channels. If demand for use of the PEG Access Channels does not warrant activation or continuation of all such Channels, Public and Educational 35 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT Access programming may, upon the written approval of the City, be combined on one or more Channels. Non-Commercial Pro~ranuning. The Public Access channels provided under this Section 6.2 shall be used exclusively for Locally Produced Programming and no PEG Access Channel shall contain any Commercial Programming. Transition. For ninety (90) days following the Effective Date (the "Transition Period"), the Grantee shall continue to provide scheduling and playback for the Public and Government Access Channels. In addition, during this Transition Period the Grantee shall also provide a playback schedule and duplicate of tapes for playback of Public Access programming for use by other franchised cable operators in the City. The City shall reimburse the Grantee one thousand dollars ($1,000.00) per month for each franchised cable operator (other than Grantee) for the services (scheduling and dubbing of tapes) provided by the Grantee during this Transition Period. After the ninety (90) day Transition Period, Grantee shall be relieved of any and all responsibility for the operation of the Public and Government Access Channels, other than the playback of tapes submitted to the Grantee, consistent with the Rules and Procedures for Public Access Cablecasting set forth in Exhibit "A" of the Master Ordinance. Notwithstanding anything to the contrary, the Grantee shall be relieved of any and all responsibilities for Public and Government Access, including playback services, in the event any other franchised cable operator is not cablecasting all PEG access programming within thirty (30) days of the Effective Date. 36 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT Capital Support for Government Access. Upon the Effective Date, the Grantee shall make a one-time grant in the amount of two hundred thousand dollars ($200,000.00) for Government Access equipment and facilities (not for operating expenses or support). On or before the seventh anniversary of the Effective Date, the Grantee shall make a one-time grant of fifty thousand dollars ($50,000.00) for the same purposes. The City shall provide Grantee with documentation that the monies so granted have been used for their designated puipose or are being held in reserve. The Grantee shall be entitled to a credit on a future franchise fee payment in the event the City expends the funds granted for uses or pm'poses not related to Government Access equipment or facilities. Access Channel Designations. The location of the PEG Access Channels shall not be changed without sixty (60) days notice to the City. Ad Avail Grants. Grantee shall provide the City with up to one thousand two hundred (1,200) ad avail spots each year at the Grantee's lowest unit cost for run of schedule placement. The ad avails will be on a "run of schedule" basis and shall appear on Channels used by Grantee for local advertising. Grantee reserves the right to reject advertising consistent with its existing advertising standards. Technical Quality. Grantee shall insure that all PEG Access channels meet the technical standards of the FCC; provided, however, the Grantee shall not be responsible for defects, flaws or other impairments in the programming delivered to the Grantee. 37 'IEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 6.3 6.4 Drops To Public Buildings. Grantee shall provide installation of one (1) cable Drop, and one (1) outlet, provide monthly Basic Cable Service, without charge, to administrative buildings owned and occupied by the City, and K-12 state accredited schools, with the drop length not to exceed one hundred and fifty (150) feet. For all other locations where the drop length exceeds one hundred fifty (150) feet, the requesting entity shall pay the additional incremental costs of time and material for such drop beyond the cost of a 150 feet drop. At such a public institution's request, the institution may add outlets at its own expense, as long as such installation meets the Grantee's standards. Notwithstanding anything to the contrary, Grantee shall, upon written request of the City, provide one (1) free drop to the Airport Facility and one (1) free drop to the Administrative Office at the Marina, and provide Basic Cable Service without charge. Use Of Grantee's Facilities. Subject to any applicable state or federal regulations, the City shall have the right to install and maintain, upon the poles and within the underground pipes and conduits of Grantee, any wires and fixtures desired by the City for municipal purposes. Provided, however, that (a) such use by Grantor does not unreasonably interfere with the current or future use by Grantee; (b) such use by Grantor is restricted to non-commercial municipal purposes; and (c) Grantor takes reasonable precautions to prevent any use of Grantee's facilities in any manner that results in an inappropriate use thereof, or any loss or damage to the Cable System; and (d) the Grantor and Grantee agree upon the terms and conditions, including reasonable compensation for such use. For the purposes of this subsection, "municipal purposes" includes, but is not limited to, the use of the structures 38 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT and installations for Grantor fire, police, traffic, water, telephone, and/or signal systems, but not for Cable System purposes in competition with Grantee. Grantee shall not deduct the value of such use of its Facilities from its Franchise Fee and/or other fees payable to Grantor. SECTION 7. REGULATION 7.1 Franchise Regulation. Except as otherwise provided in this Franchise Agreement, the Franchise renewed herein shall be subject to regulation by City in accordance with all of the lawful provisions of the Master Ordinance. 7.2 Force Majeure. In accordance with the Master Ordinance, in the event Grantee's performance of any of the terms, conditions, obligations or requirements of this Franchise Agreement or Master Ordinance is prevented or impaired due to any cause beyond its reasonable control or not reasonably foreseeable, such inability to perform shall be deemed to be excused and no penalties or sanctions shall be imposed as a result thereof. Such causes beyond Grantee's reasonable control or not reasonably foreseeable shall include, but shall not be limited to, acts of God, civil emergencies and labor unrest or strikes, untimely delivery of equipment, inability of Grantee to obtain, without cost, access to an individual's property, and inability of Grantee to secure all necessary permits to utilize utility poles and conduit so long as Grantee made all reasonable efforts to ensure that required equipment, parts, components, personnel and proprietary activity was ordered, hired, paid for, scheduled, checked, approved and/or facilitated. 7.3 Severability. 39 [ TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 7.4 If any material Section of this Franchise Agreement is held by a governmental authority of competent jurisdiction, to be invalid or unlawful as conflicting with applicable laws now or hereafter in effect, or is held by a court or competent governmental authority to be modified in any way in order to conform to the requirements of any such applicable laws, such provision shall be considered a separate, distinct, and independent part of this Ordinance, and, to the extent possible, such holding shall not affect the validity and enforceability of all other provisions hereof. Amendments. This Franchise Agreement may be amended only by the mutual consent of the City and Grantee. Any amendment must be in writing and executed by the City and Grantee. 40 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT 1N WITNESS WHEREOF, City and Grantee have executed this Franchise the date and year first above written. CITY OF CORPUS CHRISTI, TEXAS By: Date: ATTEST: · City Secretary (SEAL) TEXAS CABLE PARTNERS, L.P. By: Date: (Corporate Seal) STATE OF ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me on , 200 , by , the of the City of Corpus Christi, on behalf of the City. Notary Public STATE OF ) ) SS. COUNTY OF ) The foregoing instrument was ackno~vledged before me on , 200 , the of , on behalf of the company. , by Notary Public 41 TEXAS CABLE PARTNERS FRANCHISE RENEWAL AGREEMENT Installation Basic Service Pay Services FM Guides Franchise Fees Pay -Per -View Late Fees Miscellaneous Other Cash Receipts Advertising Total Bad Debt Recovery GRAND TOTAL FRANCHISE FEE @ 5% QVC, HSN & Valuevision Guides Misc (Bulk, Prod.) TOTAL Total Ad Sales Account Corpus Christi Percentage Advertising Total July EXHIBIT A August September #REF! #REF! #REF! 310m 5% 1.3114m 5% F111114 1 5% #REF! #REF! #REF! Totals Total EXHIBIT B Franchise Renewal - 30 Fiber Locations Sites Demarcation Point #1 I 1. City Hall 1201 Leopard 2 3. Airpod Hwy 44 3 6. Northwest Branch Library 3202 McKenzie 4 9. Vector Control 3041 Morgan 5 11. Fire Station #3 1401 Morgan 6 12. Fire Station #10 1550 Home Rd 7 13. Del Mar West 4101 Old Brownsville Rd 8 17. Police & Municipal Court 321 John Sartain 9 18. Ovean Williams Sr. Center 1414 Martin Luther King 10 19. Morgan/Elizabeth Morgan/Elizabeth 11 20. Staples/Carmel 1025 Carmel Pkwy 12 21. Convention Center 1901 N. Shoreline 13 23. Del Mar East Computer Room Baldwin/Ayers 14 24. Gas Department 4225 S. Port 15 25. Fire Station #6 6713 Weber 16 26. Fire Station #8 4639 Kostoryz 17 27. Service Center 2525 Hygeia 18 28. Flour Bluff Clinic 1456 Waldron Rd 19 29. Williams Ddve Clinic 5805 Williams Dr 20 30. WW Treatment Plant 201 Jester 21 32. Fire Station #14 5901 S, Staples 22 33. Fire Station #11 910 Airline 23 35. Fire Station Rodd Field Road 2300 Rodd Field Rd 24 36. Yorktown/Staples Yorktown/S, Staples 25 37. Natatorium Kostoryz/Saratoga 3202 Cabiness Pkwy 26 38. Oso Golf Course 5601 S, Alameda 27 39. Glen Oka/Waldron Glen Oak/Waldron Rd 28 40. Cedar Pass/Everhart Cedar Pass/Everhar Rd 29 41. Alameda/Ocean Alameda/Ocean Dr 30 43. Ho~ly/Everhart Holly/Everhart Corresoondina Demarcation Poir~t City Hall To Convention Center City Hall To Del Mar West City Hall To De[ Mar West City Hall To Del Mar West City Hall To Del Mar West City Hall To Del Mar West City Hall To Del Mar West City Hall To Del Mar West City Hall To Convention Center City Hall To Del Mar West Service Center to Staples and Camel City Hall To Convention Center City Hall To Del Mar East Sen/ice Center to Staple and Kostoryz Service Center to Everhart Service Center to Staple and Kostoryz Service Center to Staple and Kostoryz Service Center to Staples and Saratoga Oso Golf to Airline to Holly Service Center to Staples and Saratoga Service Center to Staples and Saratoga Oso Golf to Airline to Holly Service Center to Rodd Field Road and Holly Service Center to Everhart Service Center to Staple and Kostoryz Oso Golf to Airline to Holly Service Center to Staples and Saratoga Service Center to Everhart Oso Golf to Airline to Holly Service Center to Everhart Nearest Existing City Fiber refers to one of the major fiber runs described below: City Fiber Reference (1) City Hall TO Convention Center (2) City Hall To Del Mar West (3) City Hall To Del Mar East (4) Service Center to Staple and Kostoryz (5) Service Center to Everhart (6) Service Center to Staples and Saratoga (7) Service Center to Staples and Camel (8) Service Center to Rodd Field Road and Holly (9) Oso Golf to Airline to Holly Description Lipan to Mesquite down Chapparral to Convention Center Lipan to Alameda to Morgan to Airport down Old Brownsville Road to Campus Lipan to Alameda to Morgan to loth Street down Ayers to Campus East on Holly to Kosto~yz north to Staples and Traffic Signal Box East on Holly to Everhart and north to Coravo East on Holly to Staples and south to Saratoga East on Holly to Staples and North to Camel East on Holly to Rodd Field Road East on Holly to Airline to Oso Golf Course ORDINANCE AMENDING SECTION 6.2 OF THE CLEARSOURCE FRANCHISE REGARDING PUBLIC, EDUCATIONAL AND GOVERNMENT ACCESS CHANNELS WHEREAS, ClearSource, Inc. ("ClearSource') is the duly authorized holder ora franchise granted by the City in Ordinance No. 023835 and passed by the City Council on November 9, 1999, (the "Franchise") NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI AS FOLLOWS: SECTION 1. That Section 6.2 of the Franchise is amended to read as follows: 6.2 Public, Educational and Governmental Access. A. Access Channels. Grantee shall offer the following channels to each of it Subscribers as part of the Basic Service. (1) Public Access - Two (2) specifically designated Channels for non- commercial public access use. (2) Local Educational Access - One (1) specifically designated Channel for non-commercial local educational access use by City-designated users. (3) Government Access - One (1) specifically designated Channel for non-commercial use by the City. B. Additional Access Channels. Upon demonstration that an Access Channel is in use with locally produced audio~video programming (not Character Generated programming) during the weekdays (Monday-Friday), for seventy-five percent (75%) of the time, twenty-four (24) hours per day for twelve (12) consecutive weeks, and there is a request or demand for use of an additional Channel for the same purposes, Grantee shall, upon receipt of written request from the City, have six (6) months in which to provide an additional Access Channel dedicated for the same purpose, provided that the provision of such additional Channel(s) shall not require the Grantee to install Converters. In calculating use of the Public, Educational and Governmental programming: (1) Character generated programming shall not be included. (2) For Public and Educational Access programming purposes repeat programming shall not be counted. (3) For Government Access programming purposes, repeat programming shall be counted only in the first week of the original cablecast for weekly programming up to a maximum of three (3) airings; and only in the first month of the original cablecast for monthly programming up to a maximum of four (4) airings. (4) For Educational and Government Access programming purposes, only Locally Produced Programming shall he counted. Notwithstanding anything to the contrary, however, no more than two (2) channels shall be made available for Public Access and no more than a total of six (6) channels shall be made available for PEG Access combined. Unused Channels. If demand for use of the PEG Access Channels does not warrant activation or continuation of all such Channels, Public and 2 Educational Access programming may, upon the written approval of the City, be combined on one or more Channels. Non-Commercial Programmln[,. The Public Access channels provided under this Section 6.2 shall be used exclusively for Locally Produced Programming and no PEG Access Channel shall contain any Commercial Programming. Transition. For ninety (90) days following the Effective Date (the "Transition Period) of this Amendment, Texas Cable Partners shall continue to provide scheduling and playback for the Public and Government Access Channels. In addition, during this Transition Period Texas Cable Partners shall also provide a playback schedule and duplicate of tapes for playback of Public Access programming for use by other franchised cable operators in the City. Grantee shall pay Texas Cable Partners $1,000 per month for each for the services provided to the Grantee during this Transition Period. Playback. Notwithstanding anything to the contrary, Grantee shall begin cablecasting all PEG access programming within thirty (30) days of the Effective Date of this Amendment, in accordance with the Rules and Procedures for Public Access Cablecasting set forth in Exhibit "A" of the Master Ordinance. Grantee will be responsible for obtaining and maintaining the playback equipment, and employing staff to operate such equipment. None of Grantee's costs to provide the playback services shall be passed onto to the City nor charged against the franchise fees. The City 3 or its designee shall be responsible for developing the City's playback schedule of the Public and Government Access Channels and distributing a copy of the playback schedule to each franchised cable operator, in accordance with the rules and procedures developed by the City. The obligation of any franchised operator to provide Public and Governmental Access playback is subject to any and all franchised cable operators providing the same playback services. PEG Feeds- Grantor agrees to provide Grantee with one (1) single mode fiber connection and no equipment from each DMARC to connect to the Government Channel and Education Channel at City Hall at City. DEMARC for Del Mar College is; 101 Baldwin Blvd., Buddy Venters Bldg., Room 185 wiring closet one SMF to City Hall DEMARC: DEMARC for Nueces County is; 901 Leopard, New Jail Mechanical Room, one SMF to City Hall DEMARC: City Hall is; 1201 Leopard, City Hall Basement conduit closet, one SMF to Ayers/Civatan DEMARC: twenty Five foot (25') pigtail connection to Grantee's fiber at; Ayers/Civatan intersection In exchange, Grantee will upgrade Grantor's Internet capacity to full duplex 5 Mbps (equivalent of 3 T1 lines) over the current fiber connection to City Hall during Monday through Friday, 7:00 AM to 6:00 P.M. CST immediately. The Internet capacity may be reduced to 1 T1 Line after said hours. Grantee agrees to make arrangements to receive these feeds to begin cablecasting of Educational channel within thirty (30) days from the Effective Date of this 4 Amendment, and begin cablecasting the Governmental access channel within forty-five days from date this Amendment passes on second reading, or forty-five days after close of merger transaction between ClearSource and Grande Communications, whichever is later. None of Grantee's costs to connect to the Educational or Governmental channels shall be passed on to the City, nor charged against the franchise fee. Capital Support for Government Access. The parties acknowledge that Grantee has made a one-time grant in the amount of two hundred thousand dollars ($200,000) for government access equipment and facilities (and not for operating expenses or support). On or before the seventh anniversary date of the Franchise Agreement, the Grantee shall contribute an additional fifty thousand dollars ($50,000) for such purposes. Access Channel Designations. Grantee acknowledges and agrees that unless otherwise agreed in writing, the Access Channels activated and used by the City will have the same Channel number designations as those that are utilized by the Incumbent Provider as of the Effective Date of this Franchise Agreement. Ad Avail Grants. In order to promote Access Programming, Grantee will provide the City ad avails each year at Grantee's lowest unit cost. The ad avails will be on a "run of schedule" basis and shall appear on Channels used by Grantee for local advertising. Assistance with Soliciting Contributions. Once per year, if requested by the City, the Grantee shall provide its Subscribers an Access promotion. Technical Quality. Grantee shall maintain all Access channels meet the technical standards of the FCC; provided, however, the Grantee shall not be responsible for defects, flaws or other impairments in the programming delivered to the Grantee. Interconnection. Instead of providing playback equipment for the public access channels and connecting to the demarcation points for the educational and governmental access channels, Grantee may negotiate with incumbent Cable Operator for feed to cablecast these channels to Grantee's subscribers, subject to City approval of the final negotiation, such approval shall not be unreasonably withheld. 6 Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly That the foregoing ordinance was read for the first time and passed to its second reading on this the Day of ,2002, by the following vote: Rex A. Kinnison John Longoria Jesse Noyola Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the of _, 2002, by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly PASSED AND APPROVED this the ATTEST: Day of Day Rex A. Kinnison John Longoria Jesse Noyola Mark Scott ,2002. Armando Chapa City Secretary LEGAL FORM APPROVED ~ JAMES R. BRAY, JR. CITY ATTORNEY Lisa Aguilar Assistant City Attorney ,2002 Samuel L. Neal, Jr. Mayor ORDINANCE APPROVING THE TRANSACTION BETWEEN CLEARSOURCE, INC. AND GRANDE COMMUNICATIONS HOLDINGS, INC., SUBJECT TO REQUIREMENTS WHEREAS, ClearSource, Inc. ("ClearSource") currently owns and operates a cable television system ("System") operating in the City of Corpus Christi (the "City") and is the duly authorized holder ora franchise granted by the City in Ordinance No. 023835 and passed by the City Council on November 9, 1999, (the "Franchise") WHEREAS, ClearSource will become a subsidiary of Grande Communications holdings, change its name to Grande Communications ClearSource and Grande Communications ClearSource will accept all of the rights, obligations and benefits under the terms of the Franchise (the "Transaction") WHEREAS, the City believes it is in the best interest of the City to approve the Transaction, subject to the requirements of this Ordinance NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI AS FOLLOWS: SECTION 1. The City of Corpus Christi hereby consents to the Transaction, all in accordance with the terms of the Franchise, subject to the acceptance by Grande Communications ClearSource to the attached Amendment to the Franchise. ORDINANCE AMENDING SECTION 6.2 OF THE CLEARSOURCE FRANCHISE REGARDING PUBLIC, EDUCATIONAL AND GOVERNMENT ACCESS CHANNELS Section 6.2 of the Franchise is amended to read as follows: 6.2 Public, Educational and Governmental Access. A. Access Channels. Grantee shall offer the following chatmels to each of it Subscribers as part of the Basic Service. (1) Public Access - Two (2) specifically designated Channels for non- commercial public access use. (2) Local Educational Access - One (1) specifically designated Channel for non-commercial local educational access use by City-designated users. (3) Government Access - One (1) specifically designated Channel for non-commercial use by the City. B. Additional Access Channels. Upon demonstration that an Access Charmel is in use with locally produced audio-video programming (not Character Generated programming) during the weekdays (Monday-Friday), for seventy-five percent (75%) of the time, twenty-four (24) hours per day for twelve (12) consecutive weeks, and there is a request or demand for use of an additional Channel for the same purposes, Grantee shall, upon receipt of written request from the City, have six (6) months in which to provide an additional Access Channel dedicated for the same purpose, provided that the provision of such additional Channel(s) shall not require the Grantee to install Converters. In calculating use of the Public, Educational and Governmental programming: (1) Character generated programming shall not be included. (2) For Public and Educational Access programming purposes repeat programming shall not be counted. (3) For Government Access programming purposes, repeat programming shall be counted only in the first week of the original cablecast for weekly programming up to a maximum of three (3) airings; and only in the first month of the original cablecast for monthly programming up to a maximum of four (4) airings. (4) For Educational and Govermnent Access programming purposes, only Locally Produced Programming shall be counted. Notwithstanding anything to the contrary, however, no more than two (2) channels shall be made available for Public Access and no more than a total of six (6) channels shall be made available for PEG Access combined. Unused Channels. If demand for use of the PEG Access Channels does not warrant activation or continuation of all such Channels, Public and Educational Access programming may, upon the written approval of the City, be combined on one or more Channels. Non-Commemial Programming. The Public Access channels provided under this Section 6.2 shall be used exclusively for Locally Produced Programming and no PEG Access Channel shall contain any Commercial Programming. Transition. For ninety (90) days following the Effective Date (the "Transition Period) of this Amendment, Texas Cable Partners shall continue to provide scheduling and playback for the Public and Government Access Channels. In addition, during this Transition Period Texas Cable Partners shall also provide a playback schedule and duplicate of tapes for playback of Public Access programming for use by other franchised cable operators in the City. Grantee shall pay Texas Cable Partners $1,000 per month for each for the services provided to the Grantee during this Transition Period. Playback. Notwithstanding anything to the contrary, Grantee shall begin cablecasting all PEG access programming within thirty (30) days of the Effective Date of this Amendment, in accordance with the Rules and Procedures for Public Access Cablecasting set forth in Exhibit "A" of the Master Ordinance. Grantee will be responsible for obtaining and maintaining the playback equipment, and employing staff to operate such equipment. None of Grantee's costs to provide the playback services shall be passed onto to the City nor charged against the franchise fees. The City or its designee shall be responsible for developing the City's playback schedule of the Public and Government Access Channels and distributing a copy of the playback schedule to each franchised cable operator, in accordance with the rules and procedures developed by the City. The obligation of any franchised operator to provide Public and Governmental Access playback is subject to any and all franchised cable operators providing the same playback services. PEG Feeds- Grantor agrees to provide Grantee with one (1) single mode fiber connection and no equipment from each DMARC to connect to the Government Channel and Education Channel at City Hall at City. DEMARC for Del Mar College is; 101 Baldwin Blvd., Buddy Venters Bldg., Room 185 ~viring closet one SMF to City Hall DEMARC: DEMARC for Nueces County is; 901 Leopard, New Jail Mechanical Room, one SMF to City Hall DEMARC: City Hall is; 1201 Leopard, City Hall Basement conduit closet, one SMF to Ayers/Civatan DEMARC: twenty Five foot (25') pigtail connection to Grantee's fiber at; Ayers/Civatan intersection In exchange, Grantee will upgrade Grantor's Internet capacity to full duplex 5 Mbps (equivalent of 3 T1 lines) over the current fiber connection to City Hall during Monday through Friday, 7:00 AM to 6:00 P.M. CST immediately. The Intemet capacity may be reduced to 1 T1 Line after said hours. Grantee agrees to make arrangements to receive these feeds to begin cablecasting of Educational channel within thirty (30) days from the Effective Date of this Amendment, and begin cablecasting the Governmental access channel within forty-five days from date this Amendment passes on second reading, or forty-five days after close of merger transaction between ClearSonrce and Grande Communications, whichever is later. None of Grantee's costs to connect to the Educational or Governmental channels shall be passed on to the City, nor charged against the franchise fee. Capital Support for Government Access. The parties acknowledge that Grantee has made a one-time grant in the amount of two hundred thousand dollars ($200,000) for government access equipment and facilities (and not for operating expenses or support). On or before the seventh anniversary date of the Franchise Agreement, the Grantee shall contribute an additional fifty thousand dollars ($50,000) for such purposes. Access Channel Designations. Grantee acknowledges and agrees that unless otherwise agreed in writing, the Access Channels activated and used by the City will have the same Channel number designations as those that are utilized by the Incumbent Provider as of the Effective Date of this Franchise Agreement. Ad Avail Grants. In order to promote Access Programming, Grantee will provide the City ad avails each year at Grantee's lowest unit cost. The ad avails will be on a "run of schedule" basis and shall appear on Channels used by Grantee for local advertising. Assistance with Soliciting Contributions. Once per year, if requested by the City, the Grantee shall provide its Subscribers an Access promotion. Technical Quality. Grantee shall maintain all Access channels meet the technical standards of the FCC; provided, however, the Grantee shall not be responsible for defects, flaws or other impairments in the programming delivered to the Grantee. Interconnection. Instead of providing playback equipment for the public access channels and connecting to the demarcation points for the educational and governmental access channels, Grantee may negotiate with incumbent Cable Operator for feed to cablecast these channels to Grantee's subscribers, subject to City approval of the final negotiation, such approval shall not be unreasonably withheld. Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly That the foregoing ordinance was read for the first time and passed to its second reading on this the __ Day of ,2002, by the following vote: Rex A. Kinnison John Longoria Jesse Noyola Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the __ of ., 2002, by the following vote: Samuel L. Neal, Jr. Brem Chesney Javier D. Colmenero Henry Garrett Bill Kelly PASSED AND APPROVED this the ATTEST: __ Day of Rex A. Kinnison John Longoria Jesse Noyola Mark Scott ., 2002. Day Armando Chapa City Secretary LEGAL FORM APPROVED JAMES R. BRAY, JR. CITY ATTORNEY Lisa Aguilar Assistant City Attorney ,2002 Samuel L. Neal, Jr. Mayor 22 CITY COUNCIL PRESENTATION MEMORANDUM City Council Meeting 5114/02 AGENDA ITEM: Presentation concerning the 2002 Summer Youth Program sponsored by the Park and Recreation Department. CITY STAFF PRESENTER: Name Marco A. Cisneros Title Director, Park and Recreation ISSUE: The Park and Recreation Department is using this presentation to provide the City Council and the general public with information about programs available to youth this coming summer. REQUIRED COUNCIL ACTION: None at this time. Marco A. Cisneros, Director Park and Recreation Department ADDITIONAL SUPPORT MATERIAL ~/ Copy of Presentation ~/ Copy of Park and Recreation 2002 Summer Guide Corpus Christi Park & Recreation Discover the Benefits...T~ 0 Goals for Youth Programs · Provide safe, professionally supervised environments for our youth · Provide opportunities to enhance life skills and build for a positive future · Provide affordable programs sensitive to all income levels · Provide easy access to programs Recreation, sports, arts and culture build self- esteem and positive self- image --- foundations to persona/quality of life. Latchkey Our state licensed camps feature structured recreational activities for parents and youth needing full day recreation and child care. Camp Sites · Monday - Friday · 7:30 am - 6:00 pm Latchkey 200t Participants: 1,000 weekly average · 5 Camp Sites · Monday - Friday · 7:30 am - 6:00 pm 6 Sports Camps & Leagues These structured programs build team excellence and encourage individual discipline and performance. Sports Camps & Leagues 2001 Participants: 300 in Camps 400 in Leagues (All camps were §lied to capacity.) Learning a young age m; good sense and provide years 2001 Participants: 20,000 in General Swim 400 in Swim Lessons 200 in Family Night Golf and Camps offered to youth for all skill levels. Tennis Summer sessions include lessons, leagues, private instruction for all ages. Golf and Camps offered to youth for all skill levels. Tennis 200t Participants: 500 in golf 565 in tennis Youth Recreation · FREE open campus recreation program for youth ages 6 - 16 · 3 CClSD schools and 6 recreation facilities · M-Th at schools · M-F at recreation centers · 11:00 am - 4:00 pm Youth Recreation 200t Participants: 2,250 weekly average · M-Th at schools · M-F at recreation centers · 11:00 am - 4:00 pm Recreation Centers Classes to meet the interests of all ages: dance, fitness, art, education, sports Programs offered at 6 facilities Recreation Centers 2001 Participants: 375 weekly average Programs offered at 6 facilities Escape Outdoors! Youth are introduced to the wonders of the great outdoors - exposure and experiences instilled for a lifetime of adventure. ]7 Escape Outdoors! 2001 Participants: 100 in Camps (Some youth experienced camping for the first time in their life and gained skills that will last a lifetime.) Lunch's On Us! Food FREE Lunch & an Afternoon Snack For youth ages 1 - 18 No registration required Lunch's On Us! Food 2001 Participants: 184,074 lunches & snacks served at 38 locations For youth ages 1 - 18 No registration require~ Weed & Seed Program A comprehensive, multi-agency approach to combat violence, drug use, and gang activity in high- crime neighborhoods. Weed & Seed Program · Transportation · Night Basketball · Pools 22 78415 Community Youth Development Program (FREE for youth living in the 78415 ZIP Code) Committed to supporting, teaching, training, and empowering our youth and their families who reside and/or attend school in the 78415 ZIP Code. Funded by the Texas Department of Protective and Regulatory Services 23 78415 Community Youth Development Program (FREE for youth living in the 78415 ZIP Code) Family Events Recreation Teen Opportunities A variety of activities are planned for teens this summer...open recreation, swimming, sports leagues and camps, golf, tennis, recreation classes, and volunteer programs. Park & Recreation provides our youth opportunities to be happy and healthy/It is an investment in our youth to become productive members in our community. For more information: The summer guides have been distributed to all students enrolled in area school districts as well as other locations throughout the city. · Visit our website www.ccparkandrec, com · Call 880-3479 __l Park & Recreation Discover the Benefits...T. 23 CITY COUNCIL AGENDA MEMORANDUM - PRESENTATION May 21, 2002 AGENDA ITEM: A. Presentation by Solid Waste Services and Gershman, Brickner & Bratton, Inc. (GBB) describing status of the Business Plan for the J. C. Elliott Landfall and future Cefe Valenzuela Landf'fll. CITY STAFF PRESENTER (S): 1. Jeffrey D. Kaplan, Director, Solid Waste Services 1. Tim Bratton, GBB 2. Lawrence Mikolajczyk, Assistant Director, Solid Waste Services Issue: Solid Waste Services is tasked with updating the City Council on the progress of the Contract with Gershrnan, Brickner & Bratton, Inc. (GBB) to Develop Solid Waste and Business Plans, and Landfill Contractor Procurement plans. Backeround: On March 13, 2001 Council approved a contract in the amount of $174,550 with GBB for Solid Waste Consulting Services to develop Solid Waste and Landfill Business Plans, Landfill Contractor Procurement, and Automated Collection and Recycling Procurement plans by motion (M2001-105). GBB has finalized the Business Plan portion of their contract as specified in the contract and we are presenting the results today. B. Presentation by Solid Waste Services staff giving the quarterly update on progress of the automated garbage collection program and permitting process. CITY STAFF PRESENTER(S): 1. Jeffrey D. Kaplan, Director, Solid Waste Services ISSUE: Solid Waste Services is tasked with updating the City Council quarterly on the progress of the automated collection services provided to customers and the MSWSSC/Permit program. BACKGROUND The last status report was provided to council on January 11, 2002 regard'mg the automation and permitting programs. y Kapia~r ~' . . ? ior, Solid Was Se ces Note: The GBB Strategic/Business Plan discussed in this item is available, in its entirety, upon request from the City Secretary's Office (Document is approximately 250 pages in length). H/lorilie/bil lie/c ouncil memo/updateauto-mswsscpresen 5-21-02 EXECUTIVE SUMMARY This Landfills Strategic Plan (Plan) has been developed to assist the City of Corpus Christi (City) Solid Waste Services Department (Department) with its overall landfill development and operations program. The focus of the Plan is on the City's J.C. Elliott Landfill (Elliott) and its planned Cefe Valenmela Landfill (Cefe) and the various development activities and contractor procurement needs associated with the transition from Elliott to Cefe. The Plan also addresses certain other City initiatives, facilities, and services that augment these disposal facilities and serve to enhance their operation, extend their lives, or otherwise reduce costs, increase revenues, and improve the City's solid waste services. Included in the Plan is a review and financial forecast of construction and operations options for Cefe and also certain alternatives that could delay by 10 years or longer the City's capital improvements outlay for Cefe, an estimated $13 million or more over FY 2003 and FY 2004. The Plan has been developed with the Department's mission as a guide. The Department's stated mission is: "To provide the citizens of Corpus Christi an integrated solid waste management system that provides for collection and disposal of residential trash, household ha?ardous waste, brush, yard waste, and recyclables in a managed format that is timely, safe, efficient, and in compliance with standards and regulations, and ensures the public health as well as beautification of the City." In carrying out this mission, it is the Department's intent to utihze the resources of the private sector, as appropriate. This means forming a strategic public/private pastnership where it is in the City's interest. It also means to protect the City's interests by not putting all of its facilities and/or services under the operation ora sole entity. Moreover, through this Plan, the Department has goals to create public sector jobs and to generate maximum revenues on behalf of the City. The City's Elliott Landfill, which serves a population in excess of 300,000, is scheduled to close to filling by 2005, with Cefe being constructed and opened by that time to serve as the City's continuing long term disposal facility. Cefe has been planned and sited as a regional facility to serve much of the CBCOG area over a period in excess of 50 years. Cefe, with over 2,268 acres and 130.5 million cubic yards of permitted airspace for an estimated 67.1 million tons of waste in its 810 acres of disposal area, when constructed, will be one of the largest landfills in Texas. It was planned to receive over 500,000 tons per year initially, with the intake increasing substantially over time, to as much as 1 million tons per year, as older facilities in the region closed, regional population and economic development expanded, and communities, in addition to the City, required the disposal services that Cefe could provide. This was generally consistent with the City's historical waste receipts at Elliott, which had increased to over 480,000 tons per year by the late 1990S, with Elllott as the largest disposal facility in the region. However, this tonnage to Elliott declined sharply by 2000 with the start-up of a new, competing private landfill in Robstown, Texas, the El Centre Landfill, only 20 miles from the City. In FY 2001, the waste deliveries to Elliott had ES-1 fallen to approximately 362,000 tons and the City was confronted with several critical management initiatives to stabilize the situation while developing the final design, infrastructure planning and contractor procurement to implement Cefe. Through several strategic initiatives, including the execution of put-or-pay waste delivery contracts with selected major haulers and the implementation of a municipal solid waste system service charge, the City has increased its waste deliveries to Elliott, returning much of the lost tonnage, and stabilized its revenues. Nonetheless, the waste management landscape in the region has changed, and the City, as a dominant market participant, must place emphasis on "operating as a business" and forging strategic public/private partnerships where they can yield cost savings, revenue enhancement, improved services, and/or increased security for the City's solid waste system resources in the interests of the City's residents and businesses. In addition, the City will likely have to look beyond the CBCOG Region for additional future waste supply to Cefe. While projections of population and employment in Nueces County are strong, with population and waste generation estimated to reach approximately 338,000 and 529,000 tons, respectively, by 2010, there is now increased competition for this supply. In addition to El Centro, other communities in the region have landfills that could be expanded. Some could even be sold or leased to the private sector. Areas such as the Lower Rio Grande Valley to the south, with its burgeoning population and robust commercial/industrial development, could be an important source of waste supply to Cefe. This area will require disposal capacity for over 1 million tons of waste per year by 2010. Again, however, this may require a strategic relationship with a private partner who could access that supply, develop transfer station facilities, and provide commitments to the City on a long-term basis. A review of the status of facilities and projected facilities in the CBCOG Region, the Lower Rio Grande Valley, the South Texas Development Council Area, and other selected locations within a 120-mile radius oftbe City is provided in the Plan. Facilities Construction and Operations Options Development of Cefe With Elliott projected to close to continued landfilling by 2005, unless expanded onto adjoining property, the City must start development of the Cefe infrastructure by 2003 or implement an interim alternative. The construction and operation of Cefe could be done by the City or by a private contractor, experienced in landfill construction and operation. The construction and operation by the City offers certain cost advantages; however, it carries with it all the risk and liability, and now the substantial risk of long-term waste supply and the marketing of disposal services to more distant regions. Through a construction and operations contract with the private sector, the City can transfer the construction risk and much of the operations and post-closure care risk. Importantly, if the City contracts with a private company that can also guarantee a significant waste supply and/or aggressively market the disposal services of Cefe, the City sheds that risk, gains revenue security, and both parties obtain significant financial benefits from the increased tonnage. Since Cefe was anticipated to receive a minimum of 500,000 tons per ES-2 year, and last year the City received 362,000 tons at Elliott, the waste supply consideration is critical. Through a private construct/operate contract, the City could still potentially run the weigh scales, monitor the gate, conduct billing and oversee the contractor's activities with on-site contract management personnel. Too, as a variation of the public/private partnership for the construction and operation of Cefe, the City could possibly lease or sell the Cefe Landfill, or a portion of it, and enter into a long-term waste supply/disposal services contract with the lessee or purchaser. This could provide the City with a substantial cash infusion and/or long-term lease/royalty payments, and the City could still achieve most of the objectives it desires under a contract with a private contractor to build and operate Cefe and assume the significant risks of construction, operation, closure, and post-closure care, and %vaste supply." Expansion of Elliott Although construction of Cefe by 2004 is the City's planned action, another alternative may be available to the City that could provide the City with an interim disposal facility and allow the City to delay for 10 or more years the substantial capital improvement program to bring Cefe into operation. This is the possible expansion of Elliott onto an adjoining 92 acres at an estimated cost of $4.1 million and extending its site life until approximately 2015, when the City would move into Cefe. The advantages and disadvantages of the Cefe development alternatives and the Elliott Expansion alternative are shown in Table ES-1. Procurement of Contractor Services for Construction and Operation of Cefe Regardless of the alternative(s) pursued by the City, the construction and operation of Cefe, whether in the next few years or delayed into the future, is the linchpin in the City's long-term solid waste management system. It was planned and sited with that goal in mind, and it is a valuable resource to the City. There are several experienced contractors who could be expected to have an interest in developing and operating Cefe, or even leasing or purchasing Cefe, or a portion of Cefe, under agreement with the City. Each contractor brings certain strengths and levels of experience, but one of the most critical strengths needed in a contractor is the ability to supply waste, either as a result of integrated collection operations and market share in the region or contracts, market share, and other facilities outside the region that would enable the contractor to direct waste to Cefe. Most of the potential contractors are publicly-traded companies, and several have significant operations in western United States, including Texas. Too, most of these companies have integrated services, including landfills, transfer stations, collection systems, materials recovery facilities, and certain special waste handling operations. While they own and operate largely their own facilities and seek to internalize waste from their collection operations in their facilities, in some locations, they operate under contract or lease facilities owned by local government. ES-3 Table ES -1 Overview of Disposal Alternatives Alternatives Advantages Disadvantages (1) Expand Elliott • City delays $13 million outlay for Cefe until 2014 or later • Certain parties expecting Elliott's closure on schedule likely to be • Preserves waste flow, revenue flow, customer base, waste opposed transport patterns • Expansion of the International Airport and the Navy's concern over • Put or pay contracts retained, locking in substantial wastepossible bird strikes with training aircraft supply • Increases closure and post -closure care costs and long-term liability for • Avoids need for transfer station in near term expanded area • Gives City time to implcmenU assimr7ate other initiatives • Requires purchase of adjoining property and TNRCC permitting, • City can continue to operate Elliott or contract with private which could take up to two years. Final approvals/permitting are sector uncertain, and time crisis could occur • City incurs estimated cost of $4.1 million over 2003-2004 (2) Develop Cefe • City continues in same role as with operation of Elliott • City incurs capital outlay of $ I3 million over 2003-2004 City Construction/Operation • City transfers certain equipment and staff from Elliott to • City has all the risk of Cefe ownership, operation, closure, post -closure provide a seamless transition • City has no "put or pay" waste supply guarantees and must become an • City has full control of site and procures and manages aggressive "market participant" and business enterprise construction services under traditional procedures • City unable to take advantage of private operator waste supply, • City's plan of transition to Cefe and development schedule marketing of services, risk assumption, and operating efficiencies are not altered • Transfer station needed at Elliott to reduce vehicle traffic to Cefe, • City avoids private operating contractor procurement and minimize City's (and other collectors') travel time, and preserve the profittreturn on investment needed by the contractor customers (3) Develop Cefe • City avoids $13 million outlay and instead pays as part of a • City's cost (fee) for private operator may be higher, but this can be Private Contractor capital component in fee over time. Debt is not on City offset if private partner can bring/secure significant additional waste Construction/Operation books. • City is no longer in full control of its landfill but as owner or lessor • City is able to transfer substantial risk of has substantial control censtructionloperation, and waste supply to private • City will need to procure/contract private contractor contractor • Some constraints exist regarding contract, contract term, and form of • City loses some control, but can still run scalehouse/gate payment due to previous Cefe financing with non AMT tax-exempt and oversee operations with on-site contract management bonds personnel • Transfer station needed at Elliott • City preserves its basic plan of transition to Cefe and gains • City still has long-term liability strategic public/private partnership • Contractor is selected through competitive RFP, which could be for leascioperation • City can sell useable equipment from Elliott to contractor and require contractor to give first right of refusal on jobs at Cefe to existing Elliott staff • City sheds responsibility to operate and maintain a sophisticated new, regional landfill, and avoids most labor, equipment, and other operational costs ES -4 If the City pursues contractor procurement and negotiations with a contractor for the operation of Cefe, there are several provisions the City would want to consider in an operations contract. Negotiation of most ofthase provisions will require certain tradeoffs and concessions by the City and the selected contractor, as they will have an impact on the contract fee, and, ultimately, the tipping fees charged for disposal at Cefe. One of the most critical elements will be the issue of waste supply. The City would want to clearly understand the quantity of acceptable waste, if any, the contractor would commit to import or otherwise deliver to Cefe from customers that are not currently customers of the City. The City would want to understand the contractual relationships or other arrangements and conditions that permit the contractor (or proposer) to direct or commit this waste, the source of the waste, the facilities currently receiving this waste, and the method/equipment that will be used for delivery of this waste to Cefe. As part of a "risk management" strategy for the development and long-term operation of Cefe, there are certain contingencies the City would want to have reasonably covered, Key among these are (l) back-up capacity or an alternative outlet for disposal should use of or access to Cefe become unavailable for some reason; (2) ability to remove the operating contractor and take over the operation and/or engage a replacement operator in a timely manner under certain circumstances; and (3) access to landfill revenues. Procurement Approach and Schedule Procurement Approach. It is anticipated that if the City undertakes a procurement of a private contractor to operate Cefe, which could include construction of the initial disposal area and the subsequent construction of new cells as needed, as part of the operations requirements, the procurement would be done through a Request for Qualifications (RFQ) and/or Request for Proposals (RFP) process. Both approaches are outlined below in a one-step process. Process A: Request for Qualifications This approach would be a "pre-qualification" and negotiations whereby the City would issue an RFQ and request Expressions of Interest and Qualifications from potential contractors. This would allow the City to understand the potential contractors that are interested and the assets each interested party could offer the City. The City could then evaluate submittals, determine qualifications, interview qualified parties, and select one or more contractors for negotiations from this group based on pre-established criteria that would be set forth in the RFQ This process runs the risk of lengthy negotiations without formatted proposals. No scope of work, boilerplate contract, or organized City provisions would be sent to potential interested parties. Front-end time would be saved; however, final selection and contract negotiations could potentially make the process much slower. Of significant importance, the risk of protest fi.om an interested party is much higher. ES-5 Process B: Request for Proposals Under this process, the City would issue au RFP that addresses all the elements and services desired by the City and includes qualifications requirements, a draft contract, detailed proposal forms, including cost proposal forms, and definitive instructions regarding proposal format and content, to ensure that proposals can be evaluated on a comparative basis. The City would then evaluate qualifications and proposals, rank and interview only the proposer(s) that have passed administrative procedures, select a preferred contractor and enter into negotiations of a contract. This process is the most efficient approach. Procurement Schedule. If the City is going to proceed with procurement of a private contractor to construct and operate Cefe, with the disposal area and all support facilities complete and ready for operation in 2004, the City will need to initiate the procurement in summer 2002 and have a contractor under contract by 2003. Schedule for Process A Elaused Time Activity D,~ration from Start Prepare and Issue RFQ to Potential Contractors 7 days 14 days Pre-Submittal Conference and Site Tours w/Proposers 2 days 21 days } Qualifications Submittals Due 35 days Review Qualifications Submittals 5d~s 40d~s Interview Preferred Firm(s) (Optional) 3 days 47 days Select Contractor(s) for negotiations 7 days 54 days Review City Boilerplate Draft Contract With selected Contractor ld~ 55d~s Review Detailed City Requirements with 5 days Selected Contractor 60 days Obtain Scope of Work and Detailed Proposal 21 days From Selected Contractor 81 days Contract Negotiation Process 45 days 126 days Award Contract 14 days 140 days ES-6 Schedule for Process B Activity Duratign Prepare and Issue RFP to Potential Contractors 40 days (includes review of internal draRs) and draR Hold Pre-Proposal Conference and Site Tours 2 days Written Addenda fi.om Pre-Proposal Conference 14 days Proposals Due Review Proposals 7 days Select and Interview Finalists 10 days Select Contractor for Negotiations 7 days Conduct Negotiations 30 days Award Contract 14 days Elaused Time from Sta~ 40 days 47 days 61 days 70 days 77 days 87 days 94 days 124 days 138 days Possible Re-engineering Projects and Other Initiatives As the City modifies its solid waste management system and plans for disposal facility transition, there are certain re-engineering projects and other initiatives the City may want to consider that could provide for improvements in customer service, lower or contain certain costs or increase efficiency of facilities operation. Key among the potential re-engineering projects are Trash and Recycling Centers (T&R Centers) where residents would be able to drop off household waste, brash, reeyelables, used oil, appliances and other materials in special bulk containers at locations convenient to their residence. Another possible project is the development of a transfer station at Elliott once it stops receiving waste for landfilling. With the increased haul distance to Cefe, a transfer station would lessen the off-route time for both City and private collectors and greatly reduce truck traffic into Cefe. The City will need to evaluate the construction and operation of a transfer station. ES-7 Among the other initiatives is the possibility of converting the Solid Waste Services Department to an enterprise fund operation and operating, recording, and monitoring its solid waste facilities and services similar to a business. Another initiative that could potentially benefit the City is the development of a yard waste supply/product take-back arrangement with CBCOG communities to advance a regional service concept and enhance the eom-effectiveness of the City's Yard Waste and Brush Processing Operation at Elliott. These possible projects and initiatives are described further in the Plan. It should be noted that the possibility of developing a transfer station at Elliott and transferring the City's waste to other landfills such as the competing El Centre Landfill over an interim period upon closure of Elliott, in lieu of opening Cefe by 2005, was considered. However, given the risk to the City of losing its substantial base of waste supply and revenues, the difficulty of re-establishing that base when it would choose to move into Cefe, and the dramatic change in the City's plans, goals, and Council-adopted mission for Cefe, this option was not deemed to be viable for the City. Recommendations 1. Near Term (By July 1, 2002) City Council should decide on the preferred disposal alternative and give direction to the Solid Waste Services Department on a course of action. The development of Cefe through a strategic public/private partnership is recommended. City Council should decide on the preferred procurement/contracting approach and the City should commence procurement of a contractOr to construct and/or operate or lease/construct/operate Cefe. 2. Short Term (By January 1, 2003) · Complete procurement and award contract for the construction and/or operation or lease/construction/operation of Cefe. 3. Mid Term (2003-2004) Complete infrastructure construction and first cell development at Cefe, so that all necessary construction is complete and Cefe is operational by the time Elliott is closed to continued landfilling. Evaluate need for transfer station at Elliott to augment and improve operation at Cefe, and plan, permit, and construct an open bay transfer station at Elliott, to be operational by the time Cefe must start receiving waste, if deemed feasible. ES-8 Monitor status of facilities and waste flows throughout the CBCOG region and the Expanded Service Area to learn of situations that present opportunities for the City or that pose threats to the City's waste supply and landfill revenue base. Advance the planning and development of any re-engineering projects and other initiatives that are deemed appropriate and will be beneficial to the City. Open dialogue with other members of the CBCOG for waste supply to Elliott and/or Cefe and yard waste and brash supply to the City's Yard Waste and Brush Mulching/Composting operation at Elliott. Seek to develop a waste supply/product take-back arrangement that could advance a regional service concept and enhance the cost-effeetiveness of the City's Yard Waste and Brush Processing Facility. Open dialogue with selected private compost vendors/organic recyclers who may have interest in the private operation of the City's Yard Waste and Brash Processing Facility to determine if private operation and product marketing services could lower costs and/or increase product sales revenues such that the overall net economic impact would be a significant cost savings to the City. Based on this dialogue, as well as the dialogue with CBCOG communities who may have interest in yard waste and brush processing services, determine whether procuremem of a private operator/marketer is desirable and conduct procurement, as appropriate, through a competitive RFP process. Implement privatized operation if it is determined to be cost-effective. 4. Long Term (2005 and later) Advance planning with CBCOG toward long-term waste supply commitments to the City's regional landfill. Monitor waste facility operations and waste flows in the CBCOG area and Expanded Service Area and continue to work with the City's private landfill contractor to ensure a sufficient waste supply to the City's regional landfill. Plan and implement re-engineering projects, as appropriate, and continue to make refinements and improvements to the City's solid waste services, programs, and facilities, taking advantage of new or improved technology, processes, procedures, and sof~ware, to keep the City's solid waste system economically sound, environmentally friendly, state-of-the-art, and responsive to customer needs, ES-9 Existing and Potential Expanded Service Areas MSW Landfill Status (9/00-8/01 C xMS, miTomop Lstrok.(t.r," t+M�tYw #b10 • lera Nb2lbDo Waco-aaaca r moan-eagaau loop" vwi.-,Okm X6441-MAM %"I- boom «tMri�pf05X00 �. �A will'.�mD Projected MSW Landfill Status (2010) :M W y m r{ 1 Mani #iryil s R 1A i�tkCp. - C#wIy'M3W Qhp*"ITuaaspr WadGll look* 0m) ED Lm lhM IO Ala ♦ iM1.i11M70. D0a smw. zagaa # 5apm. MAN :a ,: - 2"01.100000 .. 10ai01.20"m 3 - $0404-2o0;ma ® 9001+0+.: sa4,apP .70797 N�MtYAni!OaA10a 0 4rAdN 7pAn;f00.0aa IL 7uw4beAli nu c IL ON—v4kmv s � CORPUS O May 21, 2002 BASTE UAI A rom, M . 33,928 automated carts delivered City-wide 46% of The City receives automated service . Three Route Areas Serviced: North- 11,530 Central- 10,548 South- 11,850 Current Routing: . Automated 33 routes @ 925 stops/route (twice -weekly service) • Cart Delivery and Repair . Manually Collected Routes: ♦ Collect 40 routes @ 1,050 stops/route (twice -weekly service) ♦ (6) routes ADA, backdoor, alley collection routes (1-North;1- Central;4-South) 2 0 0 0 0 0 0 0 .~eqtunN 0 0 0 0 0 0 0 0 0 0 0 0 0 0 JeqtunN Permitting Actions ♦ Permitting of solid waste haulers benefits both the consumer & the hauler 2001 Action ♦ Aug.: Identified self -haulers & haulers -for -hire at J. C. Elliott Landfill entrance (through December 502 haulers have been identified) ♦ Oct.- Dec.: Identified commercial haulers collecting waste from ICL & not displaying a permit sticker (monitoring commercial haulers throughout the City) Current 2002 Action - Enforcement actions through: ♦ Citing non -permitted haulers • Collections of unpaid MSWSSC • Audit of questionable accounts 0 suol --+_FY00-01 +Actual FY01-02 _ _. - Projected FY01-02 800 current 700 Ja1°� eport _ - 600 or 500 0 400- 300- 200 00300200 100 0 5 7 4,500 4,000 3,500 3,000 2,500 H c 0 ~ 2,000 1,500 1,000 0 January rT VV -VI Actual FY 01-02 . • _ Projected FY 01-02 Current 25,000 20,000 15,000 C O F 10,000 5,000 0 D Current _o .a January Report t FY 00-01 --ml.—Actual FY 01-02 Projected FY 01-02 JAJ�ti F�0` ecX10 ��� �JQ� �a�A a�Gr PQM\ �mA e �Jx� 4< 9 0 0 0 0 0 0 0 0 0 0 0 0 nUOAOH I e~,O.L Notes and Comments -319-