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HomeMy WebLinkAboutAgenda Packet City Council - 11/11/2008CITY COUNCIL AGENDA NOVEMBER 11, 2008 11:45 A.M. — Commendation Certificate presented to Sarah Lee Sang from Central Catholic K -1 State Chess Champion Presentation by: Corpus Christi Mayors Committee on Veteran Affairs "At Your Service Award ", City Staff Recognition AGENDA CITY OF CORPUS CHRISTI REGULAR COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 1201 LEOPARD ST. CORPUS CHRISTI, TEXAS 78401 NOVEMBER 11, 2008 10:00 A.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 12:00 p.m. or at the end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state yourname 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 Usted desea dirigirse al Concilio y cree que su inglds es limitado, habrr un interprete inglds- espanol en togas las juntas del Concilio para ayudarle. 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 once (at 361 - 826 -3105) at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Henry Garrett to call the meeting to order. B. Invocation to be given by Reverend Brian Y. McDonald, Glad Tidings Assembly of God Church. C. Pledge of Allegiance to the Flag of the United States. D. City Secretary Armando Chapa to call the roll of the required Charter Officers. Mayor Henry Garrett Mayor Pro Tem Priscilla Leal Council Members: Melody Cooper Interim City Manager Angel R. Escobar Larry Elizondo, Sr. City Attorney Mary Kay Fischer Mike Hummell City Secretary Armando Chapa_ Bill Kelly Michael McCutchon John Marez Nelda Martinez E. MINUTES: Annrnval of Renular Meetings of October 21. 2008 and October 28. 2008. (Attachment # 1) Agenda Regular Council Meeting November 11, 2008 Page 2 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) F. BOARDS & COMMITTEE APPOINTMENTS: (Attachment # 2) 2. • Citizens Advisory Health Board * Committee for Persons with Disabilities * Corpus Christi Convention and Visitors Bureau * Landmark Commission G. 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. H. CITY MANAGER'S REPORT: (NONE) I. CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been fumished 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) 3. Motion approving the purchase of forty -three (43) police package sedans, two (2) pickup trucks and two (2) cargo vans with the following companies for the following amounts in accordance with Bid Invitation No. BI- 0026 -09, based on low bid and low bid meeting specifications for a total amount of $1,042,309. Agenda Regular Council Meeting November 11, 2008 Page 3 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Funding is available from the FY 2008 -2009 Capital Outlay budget in the Maintenance Services Fund and the Crime Control and Prevention District Fund. All units are replacements. (Attachment # 3) Champion Ford Corpus Christi, Texas Line Items: 1, 2 $1,006,851 Access Ford Corpus Christi, Texas Line Item: 3 $35,458 Total: $1,042,309 4. Motion approving a supply agreement with Ergon Asphalt & Emulsions, Inc., of Austin, Texas for emulsion oil, in accordance with Bid Invitation No. BI- 0221 -08 based on only bid for an estimated six -month expenditure of $66,235. The term of the contract will be for six months with an option to extend for up to five additional six month periods subject to the approval of the supplier and the City Manager or his designee. This material is used by Street Services for maintenance of city streets. Funds have been budgeted by Street Services in FY 2008 -2009. (Attachment # 4) 5. Motion approving the purchase of a Wide Area Mower and a Progator Sprayer, with a 300 gallon tank from John Deere Company, of Cary, North Carolina in the amount of $66,062.77. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The equipment will be used to maintain the fairways and putting greens at the Gabe Lozano Golf Course and Oso Golf Course. These items are replacements to the fleet. Funds have been budgeted by Parks and Recreation Department, Gabe Lozano Golf Center Fund and Oso Golf Course Fund for FY 2008 -2009. (Attachment # 5) 6.a. Motion authorizing the City Manager or his designee to accept a grant in the amount of $100,964.38 from the State of Texas, Criminal Justice Division to continue the Violence Against Women Act (VAWA) grant within the Police Department for Year 9 with a city cash match of $38,952.37, in -kind match of $16,800 for a total project cost of $156,716.75 and to execute all related documents. (Attachment # 6) Agenda Regular Council Meeting November 11, 2008 Page 4 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 6.b. Ordinance appropriating $100,964.38 from the State of Texas, Criminal Justice Division in the No. 1061 Police Grants Fund for funding available under the Violence Against Women Act (VAWA) Fund, transferring $38,952.37 from the No. 1020 Cash contribution to grants and appropriating it in the No. 1061 Police Grants Fund as grant matching funds. (Attachment # 6) 7.a. Motion authorizing the City Manager or his designee to accept a grant in the amount of $484,856 from the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) for funding available under the COPS 2008 Child Sexual Predator Program, funds to be used to reduce child endangerment with a city in -kind contribution of $10,000 and to execute all related documents. (Attachment # 7) 7.b. Ordinance appropriating $484,856 from the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) for funding available under the COPS 2008 Child Sexual Predator Program, fund to be used to reduce child endangerment, in No. 1061 Police Grants Fund with a city in- kind contribution of $10,000. (Attachment # 7) 8.a. Motion authorizing the City Manager or his designee to accept additional grant funding in the amount of $28,000 from the Executive Office of the President, Office of National Drug Control Policy, to support the Police Departments role in the Texas Coastal Corridor Initiative in the Houston High Intensity Drug Trafficking Area. (Attachment # 8) 8.b. Ordinance appropriating $28,000 in the No. 1061 Police Grants fund from the Executive Office of the President, Office of National Drug Control Policy to support the Police Department's role in the Texas Coastal Corridor Initiative in the Houston High Intensity Drug Trafficking Area. (Attachment # 8) 9. Resolution authorizing the submission of a grant application in— the amount of $16,300 to the Texas Department of Public Safety, Governor's Division of Emergency Management Preparedness (HMEP) Grant Program for public awareness brochures, school book covers, coloring books, and to conduct an emergency response exercise with a hard match of $3,260; and authorizing the City Manager or his designee to apply for, accept. reiect. alter. or terminate the grant. (Attachment # 9) Agenda Regular Council Meeting November 11, 2008 Page 5 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 10.a. Resolution authorizing the City Manager or his designee to accept a grant in the amount of $44,206 and to execute a contract and all related documents with the Texas State Library and Archives Commission for the Loan Star Libraries Grant to be used as follows: $41,206 for books for all libraries; $2,000 for archival supplies for La Retama Central Library; and $1,000 for furniture for the Anita & W. T. Neyland Public Library. (Attachment # 10) 10.b. Ordinance appropriating a grant in the amount of $44,206 from the Texas State Library and Archives Commission into the Library Grants Fund No. 1068 to be used as follows: $41,206 for books for all libraries; $2,000 for archival supplies for La Retama Central Library; and $1,000 for furniture for the Anita & W. T. Neyland Public Library. (Attachment # 10) 11.a. Resolution authorizing the City Manager or his designee to execute a Gift Agreement with the Friends of Corpus Christi Public Libraries, in the amount of $5,000 for the purchase of technology for the Dr. Clotilde P. Garcia Public Library. (Attachment # 11) 11.b. Ordinance appropriating a $5,000 gift from the Friends of Corpus Christi Public Libraries into the General Fund No. 1020, Organization No. 12850, Account No. 520100, for the purchase of technology for the Dr. Clotilde P. Garcia Public Library; changing FY 2008 -2009 Operating Budget . adopted by Ordinance No. 027776 to increase revenues and appropriations by $5,000 each. (Attachment # 11) 12. Ordinance appropriating $4,816.28 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Anita and W.T. Neyland Public Library from the following sources: $3,046.44 from unappropriated interest eamings from the Library CIP Fund No. 3210 and $1,769.84 from royalties from oil, gas, and mineral interest bequeathed to the City library from the Estate of William T. Neyland; changing the FY 2007 -2008 Capital Budget adopted by Ordinance No. 027456 to increase appropriations by $4,816.28. (Attachment # 12) Agenda Regular Council Meeting November 11, 2008 Page 6 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 13. Motion authorizing the City Manager or his designee to execute a Job Order Contract with Alpha Building Corporation of Corpus Christi, Texas in the amount of $153,004.18 for Lindale Recreation Center Renovations (BOND ISSUE 2004) (Attachment # 13) 14.a. Motion authorizing the City Manager or his designee to execute an agreement for adjustment of an eight -inch (8 ") pipeline in the estimated amount not to exceed $64,437.50 with South Shore Pipeline, L.P., of Houston, Texas for the Corpus Christi International Airport Drainage Phase VI Project. (Attachment # 14) 14.b. Motion authorizing the City Manager or his designee to execute an agreement for adjustment of an six -inch (6 ") pipeline in the estimated amount not to exceed $108,000 with Crosstex Natural Gas Transmission, Ltd., of Dallas, Texas for the Corpus Christi International Airport Drainage Phase VI Project. (Attachment # 14) 14.c. Motion authorizing the City Manager or his designee to execute an agreement for adjustment of an six -inch (6 ") pipeline in the estimated amount not to exceed $163,496 with Copano Pipeline, L.L.C., of Houston, Texas for the Corpus Christi International Airport Drainage Phase VI Project. (Attachment # 14) 15. Motion authorizing the City Manager or designee to execute a Real Estate Sales Contract with Noy R. Shockley and wife, Betty Shockley in the amount of $130,000 plus $1900 in closing costs and an additional amount of $22,500 for relocation assistance to cover moving costs and incidental expenses in connection with a replacement dwelling, all for the purchase of fee simple property rights to Parcel 3, described as "Peary Place Annex B" (0.471 acres), with the street address of 1901 Paul Jones Ave., necessary for South Guth Ballfield Relocation. (Attachment # 15) 16. Motion authorizing the City Manager or his designee to execute a geotechnical services agreement with Kleinfelder, Inc. of Corpus Christi, Texas in an estimated amount not to exceed $204,400 for the J. C. Elliott Landfill Groundwater Monitoring and Sampling Agreement - 2009. (Attachment # 16) Agenda Regular Council Meeting November 11, 2008 Page 7 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 17. Resolution approving the second amendment to Corpus Christi Business and Job Development Corporation's agreement to grant business incentives to Del Mar College for the retention of jobs, which grants an additional $50,000 for a student intern program to assist small businesses in Corpus Christi. (Attachment # 17) 18. Resolution approving the second amendment to Corpus Christi Business and Job Development Corporation's agreement to grant business incentives to Texas A &M University- Corpus Christi for the retention of jobs, which grants an additional $70,000 for a student intern program to assist small businesses in Corpus Christi. (Attachment # 18) 19. Ordinance appropriating $25,300 from the reserve for Municipal Court Juvenile Case Manager Fund for Juvenile Case Manager Salaries currently budgeted in the General Fund; changing the FY 2008 -2009 Operating Budget adopted by Ordinance 027776 to increase appropriations by $25,300. (Attachment # 19) 20. First Reading Ordinance - Amending Section 2 -75 "Membership; terms and filling vacancies," of the Code of Ordinances, regarding membership of the Library Board; providing for an effective date; and providing for publication. (Attachment # 20) 21. First Reading Ordinance - Amending Section 2 -78 "Lay Representative of City," of the Code of Ordinances, regarding selection of the Lay Representative of the City to the South Texas Library System; providing for an effective date; and providing for publication. (Attachment # 21) 22. First Reading Ordinance - Amending the Code of Ordinances, City of Corpus Christi, Chapter 2 regarding membership in Youth Advisory Committee; providing for publication. (Attachment # 22) J. PUBLIC HEARINGS: (NONE) K. REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES: 23. Resolution authorizing the execution of an agreement with Metropolis Lofts, LLC, providing for temporary property tax abatement. (Attachment # 23) 140WNI Agenda Regular Council Meeting November 11, 2008 Page 8 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 24. Resolution approving a Small Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation and Del Mar College for the FastTrac® Growth Venture TM Program, which will provide up to $120,000 in grants to program participants who create and retain new jobs for their businesses, and authorizing the City Manager, or designee, to execute a Small Business Incentive Project Support Agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the Del Mar College Small Business Incentive Agreement. (Attachment # 24) 25. Resolution approving an Agreement between the Corpus Christi Business and Job Development Corporation and Texas A & M University - Corpus Christi (TAMU -CC) for development of facilities for TAMU -CC's Bachelor of Science in Mechanical Engineering Program, which grants $1,000,000 for retrofitting and outfitting laboratories, and authorizing the City Manager or his designee to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the Texas A & M University — Corpus Christi Agreement. (Attachment # 25) 26. Resolution adopting the City of Corpus Christi's State and Federal Legislative Program for 2009. (To be considered at approximately 1:00 p.m.) (Attachment # 26) 27. Resolution of the City of Corpus Christi City Council requesting the members of the 81St Legislative Session of the State of Texas support legislation that increases funding for the Texas Recreation & Parks Account Local Park Grant Program (TRPA) and the Texas State Park System; and requiring that all TRPA- funded park projects be subject to established TPWD competitive scoring system. (Attachment # 27) 28. Resolution authorizing the City Manager, or his designee, to submit a grant application to the Environmental Protection Agency in the amount of $400,000 for a three -year community - wide Brownfields assessment program. (Attachment # 28) 29.a. Presentation of Audit Results for Corpus Christi Firefighters Retirement System. (Attachment # 29) Agenda Regular Council Meeting November 11, 2008 Page 9 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 29.b. Resolution to acknowledge receipt of the Final Audit Report for the Corpus Christi Firefighters Retirement System for the period ended December 31, 2006. (Attachment # 29) 30. First Reading Ordinance - Amending the Code of Ordinances, City of Corpus Christi, Chapter 55, to impose lien for overdue utility bill; providing for publication; and providing an effective date of December 1, 2008. (Attachment # 30) L. PRESENTATIONS: Public comment will not be solicited on Presentation items. 31. Report on Tuloso- Midway Independent School District by Dr. Cornelio Gonzalez, Superintendent (To be considered at approximately 1:30 p.m.) (Attachment # 31) 32. Presentation on the Secretary of State's interpretation of City April election date. (Attachment # 32) 33. Overview of Plasma Technology Project by Bayshore Technologies, Inc. (Attachment # 33) M. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 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 located 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.) PLEASE BE ADVISED THAT THE OPEN MEETINGS ACT PROHIBITS THE CITY COUNCIL FROM RESPONDING AND DISCUSSING YOUR COMMENTS AT LENGTH. THE LAW ONLY AUTHORIZES THEM TO DO THE FOLLOWING: 1. MAKE A STATEMENT OF FACTUAL INFORMATION. 2. RECITE AN EXISTING POLICY IN RESPONSE TO THE INQUIRY. Agenda Regular Council Meeting November 11, 2008 Page 10 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 3. ADVISE THE CITIZEN THAT THIS SUBJECT WILL BE PLACED ON AN AGENDA AT A LATER DATE. PER CITY COUNCIL POLICY, NO COUNCIL MEMBER, STAFF PERSON, OR MEMBERS OF THE AUDIENCE SHALL BERATE, EMBARRASS, ACCUSE, OR SHOW ANY PERSONAL DISRESPECT FOR ANY MEMBER OF THE STAFF, COUNCIL MEMBERS, OR THE PUBLIC AT ANY COUNCIL MEETING. THIS POLICY IS NOT MEANT TO RESTRAIN A CITIZEN'S FIRST AMENDMENT RIGHTS. N. EXECUTIVE SESSION: 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 Govemment 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. 34. Executive Session under Texas Government Code Section 551.071 regarding electric franchise with AEP Texas Central Company, with possible discussion and action related thereto in open session. 35. Executive Session under Texas Government Code Section 551.071 regarding fire collective bargaining negotiations, with possible discussion and action related thereto in open session. 36. Executive session pursuant to Texas Government Code, Section 551.074 to deliberate the appointment, employment and duties of the City Manager with possible discussion and action related thereto in open session. Agenda Regular Council Meeting November 11, 2008 Page 11 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) O. ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the Citys official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at 3: 3D p.m., on November 5, 2008. Armando Chapa City Secretary NOTE: The City Council Agenda can be found on the City's Home Page at www.cctexas.com on the Thursday before regularly scheduled council meetings. If technical problems occur, the agenda will be uploaded on the Internet by Friday before 5:00 p.m. Symbols used to highlight action items that implement council goals are on attached sheet. SUPPLEMENTAL AGENDA REGULAR COUNCIL MEETING CITY OF CORPUS CHRISTI, TEXAS CITY HALL -COUNCIL CHAMBERS 1201 LEOPARD STREET NOVEMBER 11, 2008 10:00 A.M. PUBLIC NOTICE is hereby given pursuant to Texas Open Meetings Act of the following addition to the agenda of the City Council to be considered at the above meeting: J. PUBLIC HEARINGS: 22 (1).a. Public hearing and Ordinance designating the Lon C. Hill Power Plant Reinvestment Zone, within the City of Corpus Christi, Texas, under the Property Redevelopment and Tax Abatement Act (Chapter 312 of the Texas Tax Code). 22 (1).b. Resolution authorizing the execution of an agreementwith Lon C. Hill, L.P. providing for temporary property tax abatement. POSTING STATEMENT: This supplement agenda was posted on the City's official ulletin boar at t e front entrance to City Hall, 1201 Leopard Street, at C~ m. ,~.r , 2008. Armando Chapa City Secretary City Council Goals 2007 -2009 Il?OWNI Develop Street Plan Texas A&M University— Corpus Christi Expansion Neighborhood Improvement Program (NIP) and Model Block Expansion Development Process Improvement Bond 2008 Coliseum Plan Master Plan Updates Improve Code Enforcement Downtown Plan Charter Review 1 PRESENT Mayor Henry Garrett Mayor Pro Tem Priscilla Leal Council Members: Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Michael McCutchon John Marez* Nelda Martinez MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting October 21, 2008 - 10:00 a.m. City Staff: Interim City Manager Angel R. Escobar City Attorney Mary Kay Fischer City Secretary Armando Chapa *Arrived at 10:36 a.m. Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Father Andrew Thayer with St. Bartholomew's Episcopal Church and the Pledge of Allegiance to the United States flag was led by Council Member Priscilla Leal. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Garrett called for approval of the minutes of the special Council meeting of October 7, 2008. A motion was made and passed to approve the minutes as corrected. * * * * * * * * * * ** Mayor Garrett referred to Item 2 regarding the confirmation of officers for the C.C. Aquifer Storage and Recovery Conservation District. City Secretary Chapa announced that Texas Special District Local Laws require the City Council to confirm the election of officers annually for the C.C. Aquifer Storage and Recovery Conservation District. Mr. Chapa stated that the board is recommending the confirmation of the following officers: Oscar Martinez as President, Margie Rose as Vice- President, and Fred Segundo as Secretary. Mr. Elizondo made a motion to accept the recommendations. The motion was seconded by Mr. Kelly. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon. and Martinez, voting "Aye "; Marez was absent. Mayor Garrett called for consideration of the consent agenda (Items 3 - 20). There were no comments from the public. Council members requested that Items 12, 15, 16, and 17 be pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 3. MOTION NO. 2008 -267 Motion approving a supply agreement with Pencco, Inc., of San Felipe, Texas for approximately 178,150 gallons of ferrous sulfate in accordance with Bid Invitation No. BI- 0224-08 based on only bid for an estimated six -month expenditure of $149,997. The term of the supply agreement will be for six months with an option to extend for up to five additional —1— Minutes — Regular Council Meeting October 21, 2008 — Page 2 six -month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by the Wastewater Department in FY 2008 -2009. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 4. MOTION NO. 2008 -268 Motion authorizing the purchase of specialized equipment for a total amount of $403,716.87 utilizing funds from the 2007 Homeland Security Grant awarded to the City of Corpus Christi and budgeted in the Fire Grant Fund No. 1062. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 5.a. MOTION NO. 2008 -269 Motion authorizing the City Manager or his designee to accept grant funding in the amount of $257,801.80 from the Texas Department of Transportation (TXDOT) for Years 2 and 3 of the Comprehensive Selective Traffic Enforcement Project (STEP) in the Police Department for overtime Driving While Intoxicated and Speed enforcement with a City match of $114,175.02 and to execute all related documents. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 5.b. ORDINANCE NO. 027895 Ordinance appropriating $257,801.80 from the Texas Department of Transportation (TXDOT) for funding for Years 2 and 3 of the Comprehensive Selective Traffic Enforcement Project (STEP) in No. 1061 Police Grants Fund. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 6.a. RESOLUTION NO. 027896 Resolution authorizing the City Manager or his designee to accept a grant of $748,018 from the Texas Department of State Health Services to provide for the Women, Infants, and Children program (WIC), based on an $11.55 reimbursement for each participant served, and to execute all related documents. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 6.b. ORDINANCE NO. 027897 Ordinance appropriating a grant of $748,018 from the Texas Department of State Health Services in the No. 1066 Health Grants Fund to provide for the Women, Infants, and Children program (WIC), based on an $11.55 reimbursement for each participant served. -2- Minutes — Regular Council Meeting October 21, 2008 — Page 3 An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. MOTION NO. 2008 -270 Motion authorizing the City Manager or his designee to execute a two -year contract with the Department of State Health Services for the administration of duties performed by the Vital Statistics Program of the Health Department and for the payment of record fees due to the State. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye'; Marez was absent. 8. ORDINANCE NO. 027898 Ordinance appropriating $625,409 from the estimated program income revenue in the No. 1066 Health Grants Fund as State Fiscal Year 2008 -2009 program income to fund laboratory and public health services for the period of September 1, 2008, through August 31, 2009. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 9.a. RESOLUTION NO. 027899 Resolution authorizing the City Manager or his designee to execute all documents necessary to accept the $150,000 grant from the U.S. Department of Justice (DOJ), Office of Justice Programs for support of the Corpus Christi Southeast Weed and Seed Community for FY 2008 -2009. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 9.b. ORDINANCE NO. 027900 Ordinance appropriating $150,000 from the U.S. Department of Justice, Office of Justice Programs in the No. 1067 Federal /State Grant Fund for support of the Corpus Christi Southeast Weed and Seed Community for FY2008- 2009.) An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting _"Aye"; Marez was absent. 10.a. RESOLUTION NO. 027901 Resolution authorizing the City Manager or his designee to accept a grant of $31,000 from the Coastal Bend Council of Governments and execute an Interlocal Agreement to provide recycling and anti -litter education. Minutes — Regular Council Meeting October 21, 2008 — Page 4 The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 10.b. ORDINANCE NO. 027902 Ordinance appropriating a grant of $31,000 from the Coastal Bend Council of Governments in the No. 1051 Solid Waste Grants Fund to provide recycling and anti -litter education. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 11. MOTION NO. 2008 -271 Motion authorizing the City Manager or his designee to execute a System Support Agreement with Mettler - Toledo, Inc., of Columbus, Ohio for a term of five years, commencing September 19, 2008 and ending September 18, 2013, and total cost of $86,187.60, with the option to extend for up to one additional five year term. The fee for the first year of the agreement is $16,561.67. The system support agreement covers hardware and software associated with the scale systems at the Cefe Valenzuela Landfill and software for the J.C. Elliott Landfill Transfer Station and Central Management Reporting System. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 13. MOTION NO. 2008 -273 Motion authorizing the City Manager or his designee to execute Amendment No. 16 to the engineering services contract with Pierce, Goodwin, Alexander and Linville (PGAL), Inc. of Dallas, Texas in an amount not to exceed $259,744.80 for a restated not to exceed total fee of $2,888,813.80 for the Corpus Christi International Airport Airfield Drainage Phase VI and Taxiway Rehabilitation, Signage and Lighting Improvement Projects for construction management and inspection. The foregoing motion was passed and approved with the following vote: Garrett, Cooper. Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye ": Marez was absent. 14. MOTION NO. 2008 -274 Motion authorizing the City Manager or his designee to execute Change Order No. 3 with Longhorn Excavators, Inc., of Richmond, Texas in the amount of $59,602 for the Cefe F. Valenzuela Landfill Section 4A Liner & Leachate Collection System and Section 4B Excavation for sump modifications. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 19. ORDINANCE NO. 027904 Amending the Code of Ordinance, Chapter53- Traffic, Section 53- 250 - Schedule I, One -Way Streets and Alleys, Section (a), by removing current one -way traffic pattern on Riverwood Road to two way traffic in the northbound and southbound direction of travel from F.M. 624 -4- Minutes — Regular Council Meeting October 21, 2008 — Page 5 (Northwest Boulevard) to River Hill Drive, at all times; providing for penalties; providing for severance; and providing for publications. (First Reading 10/14/08) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 20. ORDINANCE NO. 027905 Authorizing the City Manager or his .designee to lease Real Property to the United States Coast Guard for $1.00 a year for a term of nineteen years, nine months (beginning on January 1, 2009 and ending on September 30, 2028) in connection with a navigation marker mounted on the east wall of the South Texas Institute for the Arts Building, an Aid To Navigation (Aton) structure known as the "Corpus Christi Channel Cut "B" West Range Front Light (Ac117817) "; providing for publication. (First Reading 09/23/08) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. Mayor Garrett opened discussion on Item 12 regarding an application to drill State Tract 71 Well No. 1. Council Member McCutchon asked whether the action to grant a permit for drilling is just a formality and whether the action of the Council would be reversed if the Council voted to not approve the drilling. Director of Gas Services Debbie Marroquin said the action is just a formality. Dr. McCutchon asked how many wells are going in to Corpus Christi Bay. Ms. Marroquin stated that there are currently 133 bay wells. Ms. Marroquin added that this year there have been four (4) permits and over the last years it has varied between one (1) and four (4). Dr. McCutchon asked who makes the determination for directional drilling. Ms. Marroquin responded that the operating company goes to the Oil and Gas Advisory Committee and that the committee makes that determination. Dr. McCutchon asked whether there were any provisions for wells that are abandoned. Ms. Marroquin stated that there are provisions under the jurisdiction of the Texas Railroad Commission. City Secretary Chapa polled the Council for their votes as follows: 12. MOTION NO. 2008 -272 Motion authorizing the City Manager or his designee to grant a permit to Sabco Operating Company of Houston, Texas to drill an oil or gas well being State Tract 71, Well No. 1. approximately three miles east of the Corpus Christi Marina in Corpus Christi Bay. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. Mayor Garrett opened discussion on Item 15 regarding the Packery Channel Boat Ramp Parking Lot and Access Road. Council Member McCutchon asked who asked for the delay of the project. Interim Director of Engineering Kevin Stowers stated that the City elected to make the delay administratively because the grant from the Texas Department of Parks and Wildlife was not consummated by the state. Mr. Stowers said because it is a reimbursement, the City can not expend the money until all of the grants commitments are in place. Dr. McCutchon asked whether there was a timeframe specified in the bid for purchase of materials. Mr. Stowers stated that the contract for materials was for 120 days and that the only reason for the increase in cost is because the contract has been extended beyond 120 days. Council Member Martinez asked when the price of asphalt and hot mix would start to go down. Mr. Stowers said he could not predict when the prices will go down but that staff anticipates seeing better prices on future projects. Council Member Hummell -5- Minutes — Regular Council Meeting October 21, 2008 — Page 6 asked whether the contractors provided documents that reflected prices associated with demobilization and remobilization. Mr. Stowers said those documents were provided to the project manager and that he could provide those documents. Mr. Hummel) requested a copy of those documents. In response to Mr. Hummel), Mr. Stowers said the request for the Change Order was requested in September. Interim City Manager Escobar said staff would provide the breakdown by the end of the meeting. Ms. Martinez made a motion to table Item 15 until the end of the meeting to allow staff to provide the documents. The motion was seconded by Mr. Hummel). The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo,_ Hummel], Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 15.a. TABLED - - -- -- ne. . 15.b. TABLED. •- - - - -- "J 11! ..• . -" - - --- -" ---- - ' - - - - -- - e -!_..• ! construction contract with Garrett Construction of Ingleside, Texas, in the amount (Note: The information requested by Council was not provided by the end of the meeting.) Mayor Garrett opened discussion on Items 16 and 17 regarding the establishment of the Senior Companion Program Advisory Committee and the Retired and Senior Volunteer Program Advisory Committee. Council Member Cooper thanked the Senior Companion Program for their work and volunteering. City Secretary Chapa stated that he would call for the vote for Items 16 and 17 and Item 18 which was inadvertently not called for a vote. City Secretary Chapa polled the Council for their votes as follows: 16. FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 2, to establish the Senior Companion Program Advisory Committee; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 17. FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 2, to establish the Retired and Senior Volunteer Program Advisory Committee; and providing for publication. Minutes — Regular Council Meeting October 21, 2008 — Page 7 The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. 18. ORDINANCE NO. 027903 Amending the Code of Ordinances, Chapter 53, Traffic, Schedule V, Section 53 -254, (Increase of State Speed Limit in Certain Zones) by establishing a revised speed limit of 70 MPH on U.S. Highway 77 (increasing the speed limit from 55 MPH to 70 MPH) from Interstate Highway 37 to the City limits south; providing for penalties; providing for publication. (First Reading 10/14/08) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. Mayor Garrett referred to Item 21, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0908 -02, Martin Hameka: A change in zoning from a "FR" Farm -Rural District to an "1 -2" Light Industrial District resulting in a change of land use from vacant farm land to light industrial uses on property described as 5.009 acres out of Margaret Kelly Land, Tract 3, Tracts A, B and C, located at 5802 Old Brownsville Road, located north of Old Brownsville Road and approximately 1,100 feet southwest of Westpoint and Old Brownsville Road intersection. City Secretary Chapa stated that the Planning Commission and staff recommended approval of an "1 -2" Light Industrial District. Mr. Martin Hameka was present to respond to questions. Council Member Hummell asked what the type of business was proposed for the property. Mr. Hameka stated that the property would be used as for storage units. No one appeared in opposition to the zoning change. Ms. Cooper made a motion to close the public hearing, seconded by Mr. Elizondo, and passed. Mr. Chapa polled the Council for their votes as follows: 21. ORDINANCE NO. 027906 Amending the Zoning Ordinance, upon application by Martin Hameka, by changing the Zoning Map in reference to 5.009 acres out of Margaret Kelly Land, Tract 3, same being described as Tracts A, B and C, from "FR" Farm -Rural District to "1 -2" Light Industrial District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; and providing for publication. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. —7— Minutes — Regular Council Meeting October 21, 2008 — Page 8 Mayor Garrett referred to Item 22, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0908 -03, Brown & Ortiz, P. C.: A change of zoning from a "RE" Residential Estate District to a "B -3" Business District resulting in a change of land use from vacant to retail uses on property described as 3.777 acres, being part of Lot 6 and Lot 7, Section 41, Flour Bluff and Encinal Farm and Garden Tracts, Volume A, Page 42, Nueces County, TX, located west of Flour Bluff Drive approximately 130 feet north of the Flour Bluff and Compton Road intersection. City Secretary Chapa stated that the Planning Commission and staff recommended approval of a "B -3" Business District. Ken Brown, representative for Wal -Mart, explained that the company is requesting to rezoning the property to build a Wal -Mart Center. No one appeared in opposition to the zoning change. Ms. Cooper made a motion to close the public hearing, seconded by Ms. Martinez, and passed. Mr. Chapa polled the Council for their votes as follows: 22. ORDINANCE NO. 027907 Amending the Zoning Ordinance, upon application by Brown & Ortiz, P.C., by changing the Zoning Map in reference to 3.777 acres being a part of Lot 6 and Lot 7, Section 41, Flour Bluff and Encinal Farm and Garden Tracts, from "RE" Residential Estate District to "B -3" Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; and providing for publication. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent. Mayor Garrett referred to Item 23, and a motion was made, seconded and passed to open the public hearing on the following renewal community: 23.a. Public hearing to consider and nominate applications to the Office of the Governor for Commercial Revitalization Deduction allocations. Emily Martinez, Economic Development, introduced John Henderson, Swank & Salch, who assisted the businesses with the renewal community applications and the project representatives as follows: Todd Pietsch, with Pietsch Realty Investments LLC; Jerry and Kathy Dewbre with UBP Properties, LLC; and Eric Geiser and Freddy Alvarez with Topaz Power Group. Ms. Martinez provided information regarding the types of allocations for commercial revitalization deductions and the recommended projects description, location, census tract, number of new jobs created and retained, the total investment, and the allocation requested. Ms. Martinez also provided an overview of the total allocations and binding commitments for 2008 and 2009. Abel Alonzo, 1701 Thames, spoke in support of economic development and improving the quality of life. Mr. Alonzo thanked staff for their services. Minutes — Regular Council Meeting October 21, 2008 — Page 9 The following topics pertaining to this item were discussed: the timeframe and status of the J. Golden Properties project; the commitment to make an allocation ofa specified dollar amount to a qualified building in which the building is placed in service; whether the program will continue in 2010; whether every applicant that applied was considered; and the number of condos proposed for the UBP project (old HEB headquarters). Mr. Kelly made a motion to close the public hearing, seconded by Ms. Cooper, and passed. Mr. Chapa polled the Council for their votes as follows: 23.b. RESOLUTION NO. 027908 Resolution nominating projects to the Office of the Governor for Renewal Community Commercial Revitalization Deductions. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett opened discussion on Item 24 regarding the Laguna Shores Road Rehabilitation project from Graham Road to Hustlin' Hornet Drive. Interim Director of Engineering Kevin Stowers explained that the project will include the elevation, reconstruction and widening of Laguna Shores between Graham Road and Hustlin' Hornet Drive. Mr. Stowers said the project would also alleviate flooding that occurs in that area. The following topics pertaining to this item were discussed: the elevation of the area; the permit for mitigation; whether the bid amount will stay the same after the extension for the permit; and ways to notify the public on the status of the project and the approval of the permit. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 24. MOTION NO. 2008 -275 Motion authorizing the City Manager or his designee to execute a construction contract with H &G Contractors of Corpus Christi, Texas, in the amount of $2,919,681.16 for the Laguna Shores Road Rehabilitation from Graham Road to Hustlin' Hornet Drive for the Total Base Bid and Additive Alternate No. 1. (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett opened discussion on Item 25 regarding North Port Avenue from IH 37 to US 181. Interim Director of Engineering Kevin Stowers explained that this item is the execution of an Advance Funding Agreement with the Texas Department of Transportation (TXDOT). Mr. Stowers added that TXDOT is funding 80% of the project. Mayor Garrett called for comments from the audience. Abel Alonzo, 1701 Thames, thanked Interim City Manager Escobar for his work on the Bond 2004 projects and asked the public to support Bond 2008. Minutes — Regular Council Meeting October 21, 2008 — Page 10 The following topics pertaining to this item were discussed: the timeline of the project; whether the area will be replaced with concrete; whether the City is requesting that all bidders provide costs for concrete and asphalt; and the difference in the total bid cost for using concrete. City Secretary Chapa polled the Council for their votes as follows: 25. RESOLUTION NO. 027909 Resolution authorizing the City Manager, or his designee, to execute an Advance Funding Agreement with the Texas Department of Transportation (TXDOT) in the amount of $1,683,570 for North Port Avenue from IH 37 to US 181 for construction work. (BOND ISSUE 2004) The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett opened discussion on Item 26 regarding the Utilities Business Office Policy to detect and prevent identity theft. Assistant Director of Financial Services Mike Barrera referred to a powerpoint presentation including a background; policy to detect and prevent identify theft; program purpose and definitions;. identification of red flags; detecting red flags; preventing and mitigating identity theft; and the effect of the policy. Mr. Barrera stated that the City has to adopt a policy by November 1, 2008. Council Member Leal asked if letters regarding whether customers want the City to share private information under the Open Meetings Act was distributed to all utility customers. Mr. Barrera said that the letters will be issued to all utility customers. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 26. RESOLUTION NO. 027910 Resolution approving a policy regarding identity theft detection and prevention for utility customer accounts. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Elizondo was absent. Mayor Garrett opened discussion on Item 27 regarding the Health Department Laboratory Air Handlers and Chiller Replacement. Interim Director of Financial Services Constance P. Sanchez explained that emergency contracts for replacement of the air handlers and chiller have been awarded. Ms. Sanchez added that Proposition 4 on the Bond 2008 ballot includes the cost for the replacement of both items. Ms. Sanchez stated that this item allows for the reimbursement of funding from bond proceeds to the General Fund should the proposition pass. Ms. Sanchez said that if the proposition is not approved, alternative financing will be used. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: -10- Minutes — Regular Council Meeting October 21, 2008 — Page 11 27. RESOLUTION NO. 027911 Resolution expressing official intent to reimburse costs with respect to the Health Department Laboratory Air Handler and Health Department Chiller replacement. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett opened discussion on Item 28 regarding the Health Department Laboratory Air Handlers and Chiller Replacement. Ms. Sanchez explained that this item is the appropriation from the Unreserved Fund Balance in the General Fund for replacement of the Health Laboratory Air Handler and Chiller. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 28. ORDINANCE NO. 027912 Ordinance appropriating $355,000 of the Unreserved Fund Balance in the General Fund No. 1020 for Health Department Laboratory Air Handler replacement and Health Department Chiller replacement; changing the FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 to increase appropriations by $355,000. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett opened discussion on Item 29 regarding the South Texas Aggregation Project, Inc. (STAP). Assistant City Manager Oscar Martinez explained that this resolution authorizes the execution of a five -year contract for the acquisition of power. Mr. Martinez stated that the current contract expires on December 31, 2008. Mr. Martinez added that with the decrease in cost, now is a good time for the City along with STAP to lock into a power rate ranging between 8 and 8 A cents per kilowatt hour. The following topics pertaining to this item were discussed: the savings due to lower rates; when the contract would be signed; the percentage of electricity that will be provided; whether the contract will take care of the City's usage for five (5) years; concerns with the contract including alternative energy sources; the model used to negotiate the price; review the of contract; whether there is an urgency to approve this item; the terms of the contract expiring in December; the original primary term; how long the City has been operating under six (6) month terms; the average price per kilowatt over the last three (3) years; whether there was an option to have a five -year contract three (3) years ago; whether the contract is with the same provider; how the price range is determined; the amount of power that the City is required to pay; whether the proposal allows staff to negotiate and execute the contract; whether Florida Power & Light has the means to deliver power to all of the cities; whether the City could negotiate a contract with the same provider under a six -month option; whether any municipalities in STAP are opting out of the long term contract; fluctuation of prices; measurement of savings for electricity if the City was on a four (4) day week; whether a portion of the power load can be to awarded to another electrical provider; alternative source definition; and an energy conservation plan. Ms. Leal requested a list of the number of departments that have converted to a flex schedule. -11— Minutes — Regular Council Meeting October 21, 2008 — Page 12 Dr. McCutchon made a motion to postpone Item 29 until November 11th. The motion was seconded by Mr. Elizondo. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent. 29. POSTPONED UNTIL NOVEMBER 11TH Project, Inc. (STAP) to negotiate an Electric- Supply Agreement for deliveries of electricity 1, 2009 and extending up to December 31, 2013. Mayor Garrett called for a brief recess to present proclamations and listen to public comment. Mayor Garrett called for petitions from the audience. Joan Veith, 5701 Cain Drive, asked the Council to settle the negotiations with the Corpus Christi Firefighters. Jerry Garcia, Southside Little League, spoke regarding the safety concerns on Port Avenue and the inconsistency of terms for sports lease agreement. J.E. O'Brien, 4130 Pompano, spoke regarding the issuance of debt limitations and asked whether the issuance of commercial paper should be authorized by the voters. Carlos Torres, President of the Corpus Christi Firefighters Association, said he was disappointed that the firefighters' contract was not on today's agenda and requested that the item be placed on next week's agenda. Foster Edwards, Chamber of Commerce, spoke regarding an article in BusinessWeek which listed Corpus Christi in 20th place as a best city for riding out a recession. Mr. Edwards also stated that the Chamber has formed a political action committee to support Bond 2008. Abel Alonzo, 1701 Thames, said he was glad that the Chamber is supporting Bond 2008 and encouraged the public to vote and support the project. Mr. Alonzo also stated that he hoped that the City and the Regional Transportation Authority (RTA) will address the safety issues on Port Avenue. * * * * * * * * * * Mayor Garrett referred to Item 32 regarding a report on the Municipal Court Judges salary adjustments. Interim Assistant City Manager Cindy O'Brien referred to a powerpoint presentation including a background; current salary positions; the proposed salary adjustment plan; funding options; Juvenile Assessment Center and Municipal Court necessary steps; and future council action. Council Member Marez announced that the Municipal Court Committee voted this morning to unanimously support the proposal presented by staff. The following topics pertaining to this item were discussed: the purpose for having the Juvenile Assessment Center (JAC) managers under Parks and Recreation; the duties of the JAC managers; how the case managers provide information on prevention programs; global prevention; and concerns with the closed or modified hours at JAC. Interim City Manager Escobar stated that the JAC will reopen full -time beginning Thursday, October 23rd * * * * * * * * * * * * * -12- Minutes — Regular Council Meeting October 21, 2008 — Page 13 Mayor Garrett opened discussion on Item 30 regarding the location of bollards in the vicinity of the Padre Island seawall and South Packery Channel jetty. Council Member McCutchon spoke regarding the compromise and discussions with the Beach Access Coalition, Coastal Bend Surfriders Foundation and the Padre Island Business Association; the previous resolution directing the Water Shore and Beach Advisory Committee to make a recommendation on the location of the bollards; the reason that Water Shore and Beach Advisory Committee did not make a recommendation; the proposed resolution clarifying the location of the bollards; and concern that the voters know all the information when voting on Proposition 8. Mayor Garrett called for comments from the audience. Carolyn Moon, 4902 Calvin, spoke regarding traffic access and replenishment of the beach. Ms. Moon stated that she did not see the need for bollards near the jetties during the summer. Kyle Garrison, Chair of the Water Shore and Beach Advisory Committee, provided a copy of the minutes of the Committee meeting from October 2, 2008 and said the committee agreed that action should be taken in front of the seawall. Mr. Garrison stated that the committee did make a recommendation to do nothing between the north end of the seawall and the south jetty at this time. Norm Baker, 14122 Cabana, spoke regarding the compromise meeting to find a solution for closing the area in front of the seawall and placing bollards towards the jetties. The following topics pertaining to this item were discussed: the current traffic flow; sand north of the seawall; whether the Council discussed placing bollards north of Access Road 3 -A; the Water Shore and Beach Advisory Committee recommendation; the distance of the bollards north of the seawall; the bollard system in Port Aransas; safety issues; Proposition 8; whether there are any restrictions for building on the empty land behind the proposed bollards; and the location of the chained entrances and beach launch access. Dr. McCutchon made a proposal to have continuous head -in parking in front of the condominiums and changing and adding the location of the chained entrances on Exhibit A of the resolution. Mr. Hummell made a motion to amend Section 1.b.(1) by reducing the distance of the bollards north of the seawall from 1550 feet to 1000 ft. The motion was seconded by Ms. Leal. The foregoing motion failed with the following vote: Garrett, Hummell and Leal voting "Aye "; Elizondo, McCutchon, Marez, and Martinez, voting "No "; Kelly abstained; Cooper was absent. Dr. McCutchon made a motion to amend Exhibit A of the resolution to have continuous head -in parking in front of the condominiums and to change and add the location of the chained entrances. The motion was seconded by Mr. Elizondo. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Leal, McCutchon. Marez, and Martinez, voting "Aye "; Kelly abstained; Cooper was absent. City Secretary Chapa polled the Council for their votes as follows: 30. RESOLUTION NO. 027913 Resolution approving the general location of bollards in the vicinity of the Padre Island seawall and South Packery Channel jetty. The foregoing resolution was passed and approved as amended with the following vote: Garrett, Elizondo, Hummell, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Kelly abstained; Cooper was absent. * * * ** ***** * ** -13- Minutes — Regular Council Meeting October 21, 2008 — Page 14 Mayor Garrett referred to Item 31 regarding an update on the Coastal Bend Workforce Development Partnership Industry Outreach Initiative. Director of Education Initiatives JoAnn Hooks stated that the Workforce Solution of the Coastal Bend, Port Industries, the Craft Training Center and education partners have partnered to identify the education and employment needs in the Petrochemical industry. Ms. Hooks added that the partnership has established an initiative that is proving to be successful. Ms. Hooks acknowledged the members of the partnership in the audience and introduced the presentation team as follows: President/CEO of Workforce Solutions of the Coastal Bend Mary Ann Rojas, Plant Manager for DuPont and Port Industries Representative Tim McDaniel, and President of the Craft Training Center Dr. Anne Matula. Ms. Rojas provided a background of the workforce planning, development, and collaboration with Port Industries and its partners. Mr. McDaniel referred to a powerpoint presentation including the representatives of the Port of Industries of Corpus Christi; projected workforce renewal needs; job availability, education requirements, and wages; workforce development partnership; promotion of the initiative; and program development. Dr. Matula provided an update on the Craft Training Center including the classes available, drug testing, scholarship assistance, tuition, contributing sponsors, and teacher training. The following topics pertaining to this item were discussed: social assistance from the industries; measurement of success; the number of children that have completed high school and the two -year program that have been hired; and financial aids or grants available for students. 12'". Ms. Hooks invited the Council to attend the Workforce Development Summit on November Mayor Garrett referred to Item 33 regarding an update on the Storm Water Drainage Utility. Assistant City Manager Oscar Martinez referred to a powerpoint presentation including a background; applicability; recommended types of impervious and pervious cover; and major milestones. A brief discussion ensued regarding the definitions for impervious and pervious cover. * * * * * * * * * * * * * There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 3:02 p.m. on October 21, 2008. * * * * * * * * * **,_ —14— PRESENT Mayor Henry Garrett Mayor Pro Tem Priscilla Leal Council Members: Melody Cooper Larry Elizondo, Sr. Mike Hummell* Bill Kelly Michael McCutchon** John Marez Nelda Martinez *Arrived at 9:20 a.m. * *Arrived at 9:30 a.m. MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting October 28, 2008 — 8:30 a.m. City Staff: Interim City Manager Angel R. Escobar City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the meeting to order in the Council Chambers of City Hall. Council Member Leal requested a special prayer be given for Judge Carl Lewis. The invocation was delivered by Reverend Henry Williams and the Pledge of Allegiance to the United States flag was led by Mayor Henry Garrett. Mayor Garrett called for a moment of silence for Judge Carl Lewis. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Garrett called for approval of the minutes of the regular Council meeting of October 14, 2008. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * ** Mayor Garrett called for consideration of the consent agenda (Items 2 - 5). There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 2. MOTION NO. 2008 -276 Motion approving the purchase of ten (10) 2009 Ford Fusion 4 -Door Sedans from Philpott Motors Ltd., of Nederland, Texas in the amount of $153,230. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). These units are replacements to the fleet and will be used by the Police Department, Uniform Division. Funding is available from the FY 2008 -2009 Capital Outlay Budget in the Fleet Maintenance Fund. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Kelly, Leal, Marez, and Martinez, voting "Aye "; McCutchon and Hummell were absent. -15- Minutes — Regular Council Meeting October 28, 2008 — Page 2 3.a. ORDINANCE NO. 027914 Ordinance authorizing the City Manager or his designee to execute a five -year marina space rental contract with Yachting Center of Corpus Christi, LLC for the use of fifteen (15) boat slips on Peoples Street T -Head, Number 70 eastward terminating at the west bulkhead, for operation of sailing school and related activities, and including construction of utility and boat slip improvements; for monthly slip fee rental payments of $6.85 per linear foot of dock space, subject to annual rate changes. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Kelly, Leal, Marez, and Martinez, voting "Aye"; McCutchon and Hummell were absent. 3.b. FIRST READING ORDINANCE Authorizing the City Manager or his designee to execute a fourteen -year- six -month marina space rental contract with Yachting Center of Corpus Christi, LLC for the use of fifteen (15) boat slips on Peoples Street T -Head, Number 70 eastward terminating at the west bulkhead, for operation of yachting center, sailing school, charter boats and related activities, including construction of utility and boat slip improvements; for monthly slip fee rental payments of $6.85. per linear foot of dock space, subject to annual slip rate changes; providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Kelly, Leal, Marez, and Martinez, voting "Aye "; McCutchon and Hummel) were absent. ORDINANCE NO. 027915 Amending the Code of Ordinances, City of Corpus Christi, Chapter2, to establish the Senior Companion Program Advisory Committee; and providing for publication. (First Reading 10/21/08) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Cooper, Elizondo, Kelly, Leal, Marez, and Martinez, voting "Aye ": McCutchon and Hummell were absent. ORDINANCE NO. 027916 Amending the Code of Ordinances, City of Corpus Christi, Chapter 2, to establish the Retired and Senior Volunteer Program Advisory Committee; and providing for publication. (First Reading 10/21/08) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Cooper, Elizondo, Kelly, Leal, Marez, and Martinez, voting "Aye "; McCutchon and Hummel) were absent. Mayor Garrett called for petitions from the audience. Abel Alonzo, 1701 Thames, said he was delighted that Interim City Manager Escobar had submitted his name for the City Manager position because Mr. Escobar knows the community and is very experienced. Mr. Alonzo asked the Council to do what was in the best interest of the community. Joe McComb, 5323 St. Andrews, -16- Minutes — Regular Council Meeting October 28, 2008 — Page 3 stated that he submitted a petition to the City Secretary to have the City Council consider an item to raze the Memorial Coliseum. Mr. McComb added that the Council tabled the item that triggered an initiative process and hoped to receive the required number of signatures to place this item on the April 2009 ballot. Mr. McComb explained that he was notified that the Secretary of State has issued an opinion that this item can not be placed during the City Council election in April 2009. Mr. McComb urged the City Council to honor the City Charter and include this item during the April election. Council Member Marez requested a hard copy of the decision by the Secretary of State be provided to the Council, Mr. McComb and the media. Council Member Kelly requested that the report include information regarding the reason the Secretary of State is considering this opinion after the City has been placing propositions on the April election over the last 20 years and asked that the Council discuss this issue at the next meeting. Roy Pell, 464 Indiana, said the Marina Advisory Committee provided a copy of a letter to the Council expressing their concerns regarding the marina. Mr. Pell asked the Council to consider asking the City Manager candidates where they stand on marina issues. Mayor Garrett announced the executive session, which was listed on the agenda as follows: 6. Executive session pursuant to Texas Government Code, Section 551.074 to deliberate the appointment, employment and duties of the City Manager with possible discussion and action related thereto in open session. The Council went into executive session. The Council returned from executive session. Mayor Garrett opened discussion on Item 7 regarding an Electric Supply Agreement with the South Texas Aggregation Project, Inc. (STAP). Council Member McCutchon made a motion to remove from the table Item #29 of the October 21, 2008 City Council Meeting regarding the negotiation of an Electric Supply Agreement with South Texas Aggregation Project, Inc. (STAP). The motion was seconded by Mr. Elizondo. City Secretary Chapa polled the Council for their votes as follows: 7.a. MOTION NO. 2008 -277 Motion to remove from the table Item #29 of the October 21, 2008 City Council Meeting regarding the negotiation of an Electric Supply Agreement with South Texas Aggregation Project, Inc. (STAP). The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel], Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Director of Intergovernmental Relations Rudy Garza provided an overview of the information provided in the City Manager's Report regarding responses to questions by the City Council from the October 22 "d meeting on renewable energy, renewable alternatives, options for contracting power and the historical perspective on participation. Mr. Garza stated that the market is right to consider a contract of this nature. Mr. Garza added that the City cannot enter into negotiations and ask to lock into a rate if the City hasn't made a commitment to purchase power. Mr. Garza explained that once the City states that they will participate, the contract will be finalized. Mr. Garza said that STAP has asked the City to act on the resolution by October 31st and that section 4 of the resolution has been amended to allow the flexibility to consider renewable energy. -17- Minutes — Regular Council Meeting October 28, 2008 — Page 4 The following topics pertaining to this item were discussed: natural gas future price assumptions; pricing and supplementing for wind energy; liability; the number of cities that have signed the resolution; price reference in the resolution; including a price cap of 8.5% in the resolution; wholesale prices; wireless charges; the current rate the City pays for electricity; if electricity will be less expensive if gas prices don't change substantially; the option of renewable energy credits; whether voltage flows into the City if the City purchases renewable credits; flexibility to offset the load of renewable alternatives; and whether the City is prohibited from purchasing electricity over 8.5% if wind energy decreases during peak demands. Mr. Hummel) made a motion to amend Sections 2 and 3 to including the language "ata price not to exceed 8.5% per kilowatt hour at wholesale levels" after the date of December 31, 2013. The motion was seconded by Mr. Kelly. The foregoing motion was passed and approved with the following vote. Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". City Secretary Chapa polled the Council for their votes as follows: 7.b. RESOLUTION NO. 027917 Resolution of the City of Corpus Christi, Texas, authorizing the South Texas Aggregation Project, Inc. (STAP) to negotiate and execute an Electric Supply Agreement for deliveries of electricity and necessary, related services effective January 1, 2009; approving STAP contracting with FPL Energy Power Marketing, Inc. and Direct Energy, L.P. and authorizing the City Manager to sign a contract with STAP for the City's electricity needs for the period beginning January 1, 2009 and extending up to December 31, 2013. The foregoing resolution was passed and approved as amended with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett announced that the Council has selected the following two finalists for the City Manager position: Scott Moore and Angel Escobar. Mayor Garrett stated that the finalists will be contacted and the item will be posted when the Council makes the selection. ***** * **** * ** There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 5:31 p.m. on October 28, 2008. * * **** * **** ** -18- 2 a. CITIZENS ADVISORY HEALTH BOARD — Four (4) vacancies with terms to 11 -11- 11, one of which is appointed jointly by the City and the County. DUTIES: To study and assist in health and human service operations, services and programs, and to make recommendations to the City and County through the Director of Health and Human Services. COMPOSITION: Eleven (11) members, five (5) members appointed by the City Council for three -year terms, five (5) by the Commissioners Court for two -year terms; and one member appointed jointly by the City and the County. The board elects its own president and vice president. MEMBERS Amanda Stukenberg (City) *Mary Jane Garza (City), Co Chair Ruben Garza (County) * Suzzette Chopin (City), Co Chair Leo Barrera, Jr. (County) Pamela S. Meyer (County) Rebecca Esparza (City) ***Russell Stowers (City) Dr. Tony Diaz (County) VACANT (County) * Araselia Barrera (Joint) TERMS 11 -11 -09 11 -11 -08 06 -30 -09 11 -11 -08 06 -30 -09 06 -30 -10 11 -11 -10 11 -11 -08 06 -30 -09 ORIGINAL APPTD. DATES 5 -08 -01 3 -20 -07 6 -30 -07 2 -21 -06 4 -24 -84 7 -09 -08 3 -20 -07 6 -12 -07 11 -11 -78 11 -11 -08 2 -21 -06 ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT NO. OF MTGS. NAME THIS TERM Mary Jane Garza (City) 9 Suzzette Chopin (City) 9 Araselia Barrera (Joint) 9 OTHER INDIVIDUALS EXPRESSING INTEREST Self - employed, Administrator. Activities include: Past American Cancer Society Volunteer and Board Representative. Former Member of the Downtown Redevelopment Committee. (6-15-07) NO. PRESENT 9 8 Kay H. Aebv % OF ATTENDANCE LAST TERM YEAR 100% 89% 78% Legend: *Seeking reappointment **Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —21— David Berlanga Rosa M. Gonzalez Laura L. Hebert Edward Kownslar Financer/ManagerBusinessDeveloper /CEO, Maker Capital Group, Fung Shui Lounge, Sang &Dav LLC, and American Builders. Received Bachelors Degree from University of Texas, Austin and currently working on Masters of PublicAdministration /City Management, Texas State University. Activities include: Habitat for Humanity, Organizer for Hispanics Organized for Public Education (HOPE), and Social Director for Zeta Psi. (9- 18 -07) Social Work Supervisor, Nueces County Human Services. Received Bachelor of Science in Social Work from University of Texas Pan American. Activities include: Social Work Society and Aid Coalition. (3- 12 -08) Owner and President, Hebert Insurance Group, Inc. Past President of CBAHU and Past President of Delta Gamma, RCIA teacher, and member of Eastern Star 354. (6 -7 -07) Librarian, Texas A&M University - Corpus Christi. Received BS in Journalism from University of Kansas, MS in Library Science from University of North Texas, and Master of Public Administration from Texas A &M University - Corpus Christi. Activities include: Board of Director, Family Counseling Services of Corpus Christi, 2004 -2006, Texas Library Association, Various Committees, 1999 -2007, and American Library Association, Various Committees, 1998 - Present. (6- 15 -07) Lea Lenahan Realtor, Lighthouse Realty. Received BX in Exercise Science and MPH in Public Health. (1- 14 -08) Patricia Mattocks Gerard Navarro, Jr. RoseMarie Olivarez Director of Program Services, March of Dimes. Activities include: League of Women Voters — Past Vice - President and Nominating Committee, Zonta, and St. Paul United Church of Christ — Women's Ministry. (9- 12 -07) Substitute Teacher, Corpus Christi Independent School District. Currently attending Texas A &M- Corpus Christi. (5- 19 -08) Attended College. Activities include: Neighborhood -Initiative Program — Model Block Program Leader and Neighborhood Initiative Council. (9 -2 -08) -22- Rita Sonia Padron Acute Dialysis Nurse, Renal Care Group. Received Vocational Nurse Degree from Del Mar Technical School, Certified Hemodialysis Practitioner and Pediatric Vocational Nurse. Activities include: Youth Coach for YMCA and Park and Recreation Boys Basketball Programs, Corpus Christi International Airport Ambassador, Member of RSVP, and Board of Nephrology Examiners Nursing and Technology — Policy and Procedures Chair. Recipient of Leadership Awards with RSVP and Senior Services. (2- 20 -08) Michael San Miguel Instructor/Program Coordinator, Career Centers of Texas. Received BS from University of Texas, San Antonio. Activities include: Member of the Hispanic Chamber of Commerce and Volunteer in assisting students obtain their GED. Received Award for Employee of the Quarter and Instructor of the Month. (5- 25 -07) Ted Schroeder Administrator/Instructor, Gulf Coast Food Manager Certification Program Received Degree in Business Management from University of Kentucky. Past President of Elizabethtown, Kentucky Jaycees and Lions. (2- 22 -08) Dr. Bruce Nelson Stratton General Manager, KFTX Radio. Received B.A. and Master of Arts with Major in Broadcasting from Almeda University. Activities include: Former Vice -Chair of Corpus Christi Cable Commission. Recipient of: Gavin Music Director of the Year Award, Inductee into Country Music Association of Texas Hall of Fame and Nominated twice for the #1 Air Personality by Country Music. (11 -4- 08) Tori Alexandria Thomas Miller High School Graduate. Attends College. (2- 21 -07) Timothy Weitzel Manager, Retail Store. Attending Del Mar College Activities include: Webmaster, Corpus Christi Commodores Barbershop Chorus and National Piano Guild Member. (11 -5 -08) —23— b. COMMITTEE FOR PERSONS WITH DISABILITIES — One (1) vacancy with term to 2 -1 -09. (Since the term ends 2 -1 -09, it is recommended that the appointment be for a new two-year term ending 2- 1 -11.) DUTIES: To carry on a program to encourage, assist and enable persons with disabilities to participate in the social and economic life of the city; to achieve maximum personal independence; to become gainfully employed; and to enjoy fully and use all public and private facilities available within the community. COMPOSITION: Nine (9) residents of the city who shall be appointed by the City Council. The membership of the committee shall be composed of individuals with disabilities and representatives of agencies and organizations functioning within the committee's area who are interested in the provision of services to persons with disabilities and others who are interested in the abilities and specific needs of persons with disabilities, subject to Council approval. The city's Director of Human Relations, Director of Park and Recreation, and Building Official shall serve as ex- officio non- voting members. The chairperson of the Committee for Persons with Disabilities shall serve as an ex- officio voting member of the Human Relations Commission. ORIGINAL MEMBERS TERM APPTD. DATE Thomas Dreyer 2 -01 -10 2 -19 -08 Abel Alonzo, Chair 2 -01 -10 7 -12 -05 Harvey Salinas 2 -01 -09 2 -20 -07 L. David Ramos 2 -01 -09 2 -20 -07 Herman Lee Jones II 2 -01 -09 2 -20 -07 Rosa M. Valdez 2 -01 -10 2 -20 -07 Irene Martinez 2 -01 -10 2 -19 -08 ** *Clifford E. Bost 2 -01 -09 2 -20 -07 David Walker, Vice Chair 2 -01 -09 2 -15 -05 Park & Recreation Director Ex- officio Human Relations Director Ex- officio Building Official Ex- officio (Note: The Committee for Persons with Disabilities is recommending the new appointment of Carlos Vargas.) Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —24— INDIVIDUALS EXPRESSING INTEREST Teacher, Robstown Independent School District. Received BBA in Finance from Texas State University, San Marcos, Texas. (9 -8 -08) Retired, Del Mar College. Received Masters' Degree, Licensed Professional Counselor, and Registered Professional Educational Diagnostician. Formerly served on Del Mar College Committees. Past Member of Sparkling City Chapter of Sweet Adelines. (9 -8 -08) Vocational Rehabilitative Counselor, Division of Rehabilitative Services (DARS). Received Bachelor's Degree in Psychology and Master's Degree in Counseling and Guidance from Texas A &M University - Corpus Christi. Activities include: Community Resource Committee Group — Youth and Adult, Texas Rehab Action Network, and Worksource Disabilities navigation System Committee. (4- 17 -08) Student, Texas A &M University- Corpus Christi. Received AA Degree from Del Mar College. (9- 21 -07) Tax Professional, H & R Block. Received B.A. from Mount Holyoke College, South Hadley, Massachusetts, and M.S. from Syracuse University, Syracuse, New York. Activities include: Southside Evening Toastmasters. (1 -9- 08) Received B.A. in Psychology from Texas A &M University- College Station. Activities include: Coastal Bend Center for Independent Living Board -Vice President and National Mutiple Sclerosis Society. (2- 18 -08) Educational Diagnostician, Tuloso- Midway Independent School District. Received Bachelor's Degree in Business from Corpus Christi State University and Master's Degree in Education from Texas A &M University - Corpus Christi. (2- 19 -08) - Assistant Cashier, International Bank of Commerce. Activities include: United Way of the Coastal Bend — Allocations Committee. (2- 19 -08) Karen Anderson Sheila Cudd Cynthia Del Toro Norma Jean Franklin Andrea B. Green Shea L. Hales Michele Hammock Keron E. Hasley —25— Judy Hendricks James L. Hinnant Dr. Candelario Huerta Julie Joffray Terence F. Klinger Susanne M. Lunsford Mildred McDonel RoseMarie Olivarez Roy Ortega, Jr. Activities include: Nueces Certified Master Gardener, Volunteer with Learning to Grow Project at Flour Bluff Elementary, Chairperson of Nueces County Courthouse Rejuvenation and Beautification Project, and Volunteer through the Texas Agri Life Service. (2- 18 -08) Attended College. Activities include: Neighborhood Initiative Program — Neighborhood Initiative Council and Neighborhood Initiative Program #17 Leader. (9 -2 -08) Bilingual Early Childhood Consultant, Huerta iConsultancy. Received Bachelor of Science from Texas A &I University, Kingsville, Texas, Master of Arts from Washington State University, Pullman, Washington, and Doctor of Education from Texas A &I University, Kingsville, Texas. Activities include: Wednesday Morning Breakfast (Business) Group. (11 -4 -08) Disability Accommodations Specialist, Texas A &M University- Corpus Christi. Received AA and BA in Psychology and MA in Clinical Psychology. (2- 19 -08) Bus Operator, Regional Transit Authority. United States Air Force Administration Specialist. Formerly Owned and Operated Midwest Pro Wrestling Academy. Formerly served as Community Outreach Representative for metro Transit with Teens Alone, Streetworks and Homeless Connect, Minneapolis, Minnesota. (10- 13 -08) Signing Agent — Notary Public, Notary on Wheels. Attended College and Received Enhanced Education from ATT Communications, Wilson Training School, Escrow and Title Association. Activities include: Secretary - Padre Island Rotary Club, Padres island Business Association Member, National Notary Association Member, National Association of Realtors and Lorman Education Training Volunteer. (1 -9 -08) Administrative Assistant, Frost Bank. Received Associates Degree from Del Mar College. (2- 19 -08) Attended College. Activities include: Neighborhood Initiative Program — Model Block Program Leader and Neighborhood Initiative Council. (9 -2 -08) Owner, Victorian Hall LLC. Attended numerous Tech Schools and Symposiums. Interested in community involvement. (9- 25 -07) -26- Rita Sonia Padron Judith A. Reader Emede Moses Reyes Abel Sanchez Nova Shields Jesus Martin Trevino Dr. Marilyn Upmanyu Carlos B. Vargas Willis B. Vickery Acute Dialysis Nurse, Renal Care Group. Received Vocational Nurse Degree from Del Mar Technical School, Certified Hemodialysis Practitioner and Pediatric Vocational Nurse. Activities include: Youth Coach for YMCA and Park and Recreation Boys Basketball Programs, Corpus Christi International Airport Ambassador, Member of RSVP, and Board of Nephrology Examiners Nursing and Technology — Policy and Procedures Chair. Recipient of Leadership Awards with RSVP and Senior Services. (2- 20 -08) Retired. Received BA in Mental Retardation and Elementary Education and MA in Reading. Activities include: Audubon Outdoor Club and Coastal Bend Audubon. (2- 18 -08) Independent Living Specialist, Coastal Bend Center for Independent Living. Received a Bachelors in Education. Activities include: Accessibility Coalition of the Coastal Bend. (8 -8 -08) City Carrier, United States Postal Service and Construction Contractor. Attended College. Activities include: Volunteer Counselor and Facilitator for Alcohol and Drugs Coastal Bend and Veterans Center. (3- 13 -08) Operations Manager, MV Transportation. (8- 30 -07) Student, Texas A &M University - Corpus Christi. Activities include: Volunteer Center of the Coastal Bend. (2- 19 -08) Doctor of Medicine. (2- 20 -08) General Manager, MV Transportation. Certified Operator Instructor, Texas A &M. Certified in Persons with Disabilities Training. Activities include: Board Member for Westside Business Association. Recipient of American's with Disabilities Recognition Award 2008, General Manager of the Year, 2008 and Head Coach of the Year 2000 -2001. (8- 25 -08) Retired. Substitute Teacher in Special Education for Corpus Christi Independent School District. Ticket Taker at Whataburger Field and American Bank Center. Received B.S. in Education and M.S. in Supervision and Administration. (12- 11 -07) -27- Jonathan Wagner Timothy Weitzel Consultant, NeighborWorks America. Received MBA — Business Management. Activities include: Secretary of Homeless Issue Partnership and Chairman Elect of the Coastal Bend Council of Governments Advisory board. Former Administrator for Community Development for City of Corpus Christi, 2003 -2006. (5- 29 -07) Manager, Retail Store. Attending Del Mar College Activities include: Webmaster, Corpus Christi Commodores Barbershop Chorus and National Piano Guild Member. (11 -5 -08) —28— c. CORPUS CHRISTI CONVENTION & VISITORS BUREAU — One (1) vacancy with term to 8 -1 -10 representing the Attraction Industry. DUTIES: To solicit various organizations and associations to conduct meetings /conventions /tradeshows within Corpus Christi year- round; to promote the City as a year -round destination; to design and implement an advertising campaign with state, national and international coverage to feature the Corpus Christi area as an attractive region in which to vacation or have conventions or group meetings; to provide support services to conventions in Corpus Christi; to operate visitor information centers; to provide information and advice to businesses interested in tourism and convention- related business in the Corpus Christi area; and to advise the City on projected growth of tourism and convention - related businesses to assist City planning efforts. COMPOSITION: Eleven (11) members selected directly by the City Council. The members shall be representatives of the following groups: 2 - hotel industry; 2 — attraction industry; 2 — restaurant industry; and 5 - community at large. The Mayor and City Manager, or their designees, shall serve as ex- officio non - voting members of the Board. In addition, the Council will appoint a representative from the Port of Corpus Christi Authority, a representative from the Regional Transportation Authority and a representative from the C.C. International Airport to serve as ex- officio advisory non voting members. Appointments will be for staggered, two -year terms. No person may serve as a voting member for a period longer than six years consecutively, unless such service is required by virtue of the person's position or title or to complete an unexpired term. ORIGINAL APPTD. DATE MEMBERS TERM Foster Edwards (At Large) 8 -01 -10 7-18-06 7 -18 -06 Robert Tamez (At Large) 8_01 -8 -01 -110 7 -18 -06 John Trice (At Large) 9 7 -18 -06 - -00 Art Granado (At Large) 8 01 8 -01 -9 7 -18 -06 Butch Pool (At Large) 2-13-07 Bill Morgan (Hotel Industry), Chair 8 -01 -10 7-18-06 Jodi Patel (Hotel Industry) 8 -01 -09 8 -12 -08 Mark Schaberg (Restaurant Industry)) 8-01-10 7-18-06 Damon Bentley (Restaurant Industry) 8 -01 -09 6-19-07 ** *Frank "Rocco" Montesano (Attraction Ind.) 8 -01 -10 8-12-08 Michael Womack (Attraction Industry) 8 -01 -09 Eduardo Carrion (RTA representative) Ex- officio, non - voting Michael Perez (Port of CC representative) Ex- officio, non - voting Fred Segundo (C.C. International Airport) Ex- officio, non - voting Mayor Ex- officio, non - voting City Manager Ex- officio, non - voting Legend: *Seeking reappointment * *Not seeking reappointment * * *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —29— (Note: Per the Convention and Visitors Bureau's agreement with the City, the Board is required to submit more names than vacancies. The Board is making the following nominations for consideration: Tom Schmid (Attraction Industry) and Joseph B. Schenk (Attraction Industry). INDIVIDUALS EXPRESSING INTEREST Joseph B. Schenk Tom Schmid Art Museum of South Texas, Texas A &M University- Corpus Christi. Received BA, Museum Studies and Business Management from Huntington College, Montgomery, Alabama, MA, Art Education from Ball State University, Muncie, Indiana, and Post Graduate Certificate, Museum Management from University of California, Berkeley, California. Activities include: Rotary Club of Corpus Christi. Recipient of Excellence in Peer Review - American Association of Museums. (Attraction Industry) (2- 14 -08) President and CEO, Texas State Aquarium. Received B.S. in Biology from Stetson University, Florida and M.S. in Biological Sciences from University of Central Florida. Activities include: National Board of the Association of Zoos and Aquariums, Rotary Club, Texas Tourism Industry Association Attractions Council, American Diabetes Association, South Texas Botanical Gardens, and Leadership Corpus Christi Alumni. (Attraction Industry) (10- 17 -08) —30— d. LANDMARK COMMISSION - Seven (7) vacancies with terms to 11 -20 -10 and 11- 20-11 representing the following categories: 1- Historian, 2 — History Teachers, 1 — Engineer, 1- Real Estate, 1 — Regular Member, and 1 — Title Search. (Note: Staff is recommending that the Title Search vacancy be postponed until additional resumes are received.) DUTIES: To promote the use of historical and cultural landmarks for the culture, prosperity, education, and general welfare of the people of the City and visitors to the City. COMPOSITION: Fifteen (15) members nominated by individual City Council Members and appointed by a majority vote of the Council. Insofar as possible, the numerical composition shall correspond to the ethnic, gender, and economic distribution of the City according to the last Federal Census report. All members shall have knowledge and experience in either the architectural, archaeological, cultural, social, economic, ethnic or political history of Corpus Christi. Representation of the following competencies shall be appointed as members to the commission: Two (2) historians, two (2) licensed real estate salespersons, two (2) registered architects, one (1) structural or civil engineer, two (2) history teachers, one (1) person knowledgeable in title search and/or property surveyor and five (5) other members. No one profession will constitute a majority of the membership. MEMBERS Myron Grossman (Real Estate) * ** *Michelle Braselton (Title Search) Bunny Tinker (Historian) *Anita Eisenhauer (Historian) Arthur Zeitler (Regular Member) Randi Evans (Regular Member) David Brown (Architect), Chair * * ** *Richard Moore (History Teacher) Reagan Sahadi (Regular Member) ** *Sister Anne Brigid Schlegel (History Teacher) *Craig Thompson (Engineer) *Leo Rios (Real Estate) Susie Rucker (Regular Member) *Marie Guajardo (Regular Member) Herb Morrison (Architect), Co -Chair Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —31— TERM 11 -20 -09 11 -20 -10 11 -20 -09 11 -20 -08 11 -20 -09 11 -20 -10 11 -20 -10 11 -20 -08 11 -20 -10 11 -20 -11 11 -20 -08 11 -20 -08 11 -20 -10 11 -20 -08 11 -20 -09 ORIGINAL APPTD. DATE 5 -15 -01 11 -09 -04 5 -15 -01 12 -12 -06 12 -12 -06 2 -19 -08 3 -02 -04 7 -11 -01 2 -19 -08 6 -17 -08 3 -02 -04 2 -19 -08 2 -19 -08 3 -11 -08 3 -02 -04 (Note: The Landmark Commission is recommending the reappointments of Anita Eisenhauer (Historian), Marie Guajardo (Regular Member), Leo Rios (Real Estate), and Craig Thompson (Engineer) and the new appointment of Mary Lou Verven (History Teacher). ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT NO. OF MTGS. NO. % OF ATTENDANCE NAME THIS TERM PRESENT LAST TERM YEAR Anita Eisenhauer (Historian) 9 7 78% Marie Guajardo (Regular) 6 5 83% Leo Rios (Real Estate) 6 4 67% Craig Thompson (Engineer) 9 7 78% OTHER INDIVIDUALS EXPRESSING INTEREST Mary Lou Berven Kim Charba Rick Greenfield Scott Harris Formerly Taught United States History and Western Civilization at Wichita State University and Butler Community College. Received B.A. in Asian Studies from University of Colorado, Boulder, Colorado and M.A. in History from Wichita State University, Wichita, Kansas. Activities include: Phi Alpha Theta and St. Paul's United Church of Christ. (History Teacher or Regular Member) (2- 18 -08) Business Consultant, American Dairy Queen. Received BS from Texas A &M University, College Station. Activities include: Women's Shelter and Children's Miracle Network Telethon. (Regular Member) (3 -3 -08) Program Manager Engineering Services, MANCON, Inc. Received A.A. in Liberal Arts, B.A.A.S. in Industrial Technology. and M.A. in Organizational Management. Activities include: Qualified Mediator State of Texas. (Regular Member) (1 -8 -08) Project Engineer, HDR Engineering. Received B.S. in Civil Engineering. Activities include: United States Navy Reserves, City of Corpus Christi Citizens University Class 03, American Society of Civil Engineers, Girl Scouts of Greater South Texas, and Northwest Pony League. Recipient of United States Navy Commendation Medal — Operation Iraqi Freedom 2005. (Regular Member) (10 -29- 08) —32— Susan Ashley Kesler John B. Keys James E. Klein Susanne M. Lunsford James D. Roberts Bill Shearer King High School Teacher, Corpus Christi Independent School District. Received A.A.S. in Legal Assisting from San Antonio College, B.A. in Criminal Justice from University of Texas at San Antonio, Law Courses from St. Mary's School of Law and Graduate Courses in Education from University of St. Thomas. Activities include: National Association of Legal Assistants — Certified Paralegal (CP), Texas State Historical Association, Texas State Genealogical Society, and National Genealogical Society. (Historian or Regular Member) (2- 25 -08) Equity Trader/Fixed Income Specialist, Hemdon Plant Oakley.Attended Texas A &M University. Activities include: Santa Fe Swimming Club Board Member — Treasurer and Past President. (Regular Member) (2- 18 -08) Assistant Professor, Del Mar College. Received B.A. in History and Journalism and M.A. in American History from University of Iowa, Iowa City, Iowa and Ph.D. (Modern American History) from Oklahoma State University, Stillwater, Oklahoma. Activities include: Volunteer at the Nueces County Library and Judge for the 2008 Coastal Bend Regional History Fair. (History Teacher or Regular Member) (2- 26 -08) Signing Agent — Notary Public, Notary on Wheels. Attended College and Received Enhanced Education from ATT Communications, Wilson Training School, Escrow and Title Association. Activities include: Secretary - Padre Island Rotary Club, Padres Island Business Association Member, National Notary Association Member, National Association of Realtors and Lorman Education Training Volunteer. (Regular Member) (1 -9- 08) Rigger, Corpus Christi Army Depot. Served in the United States Army. Attended Trade School. (Regular Member) (2- 18 -08) Pastor, The Rock and Salesman, Delta Tire. Attended Lincoln Technical Institute and Howard Payne University. Activities include: Freemason. (Regular Member) (2 -18- 08) -33- 3 Requested Council Date: 11/11/08 Alternate Date: 11/18/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the purchase of forty-three (43) police package sedans, two (2) pickup trucks and two (2) cargo vans with the following companies for the following amounts in accordance with Bid Invitation No. BI- 0026 -09, based on low bid and low bid meeting specifications for a total amount of $1,042,309. Funding is available from the FY08 -09 Capital Outlay budget in the Maintenance Services Fund and the Crime Control and Prevention District Fund. All units are replacements. Champion Ford Corpus Christi, Texas Line Item: 1 & 2 $1,006,851.00 Access Ford Corpus Christi, Texas Line Items: 3 $35,458.00 Grand Total: $1,042,309.00 ******** s*******rr*******rr****** a*** ar****** s* * *** * * ** * * * * * * * * * * * * * * * * * * *r * ** BACKGROUND: Purpose: Bid Invitations Issued: Bids Received: Price Comparison: Basis of Award: Funding: These vehicles will be used by the Police Department for normal police work. All units are replacements. Ten Four The City purchased (43) forty -three police patrol sedans last year for a unit price of $22,032. The current price is $22,299. The City also purchased (2) two full size cargo vans last year for a unit price of $18,484. The current price is $17,729. Low Bid Meeting Specifications— Line Item 1 Access Ford (Access), Corpus Christi, Texas submitted the apparent low bid for line item 1. However, the offer submitted by Access does not meet specification requirements regarding the rear axle, as required in the bid invitation. Low Bid — Line Items 2 & 3 Maintenance Services — 38 vehicles, 2 Pickup Trucks & 2 Cargo Vans 550020 -5110 -40120 Capital Outlay Item No.: 4 & 6 $930,814 Police Dept. — Crime Control — 5 vehicles 550020- 9010 -11717 Capital Outlay Item No. 86 Michael Barrera Assistant Director of Financial Services —37— $111,495 Total $1,042,309 co 0 (nN 0 o Eli a 0 m 0 0 0 O -0 O C N o n- a) y o) x 3 co in C C D) Q 3 x (D O_ 0 0 (-DI 0) a = 5 CD O CT ✓ a a o << 3 • 3 • 0 m n C N However, the offer submitted by Access does not :1v1014NVdO 00'60£'Zb0' L$ :a 'A,V1VIOI [jou° 00' 698'900' 6$ W N 1 (p 3 ) Cn D) V) (n !° n N N =Ti a ci(0A .0 cum— =0 CD 0Da I. Z CO_ 1 O s? r i 1 ?' "'I O O 1 7 A -n C = o fn o) (n a CO 0-00r- 0 O ria— 0 0 a)_ °)0- 30 CD N� C Z W vv O st a 5\ 1 - C N O 't 1 O A O x n W 0 'D 0-000 T ,O-., a N g0) 0 d -0'(D 70c . 7 *.(0 o s f(1) 1 (0 1 O D) 9) O N 7 Description N N A 0) 0 h< 0 0 CD a) CD 0 c .r. 1 V J N (0 O o N CA 1:34:56.1 co A W 1 0 O O A CO 0 0 0 N O Ci 0 ... O 0 (0 A O 0 0 0 r a co O - � p co a 'ACCESS FORD CORPUS CHRISTI, TX _I. co N O o co incn a) O O co f0 V OO V I's A b O EA N N CO OO a CO cn O V b O C r. = N p N N 'CHAMPION FORD CORPUS CHRISTI, TX _. to o (n b o (0 co -w co o o o can a w CA o 0 (n o 1 co O O <n N) co o 0 co w rn --.4 O O -0 c c' �. co v —I -,. 0 o N 'LAWRENCE MARSHALL HEMPSTEAD, TEXAS 1 co co A in O 03 In co 6 0 N a (n O (n O O (0 (WO O -3k Z 0 03 6 -0 c O _ ,.: (D -0 —I O. O N 0 SAMES CROW FORD CORPUS CHRISTI, TEXAS 0 W -0 n O cc zmn,. n 7D0 F O CD n D ccoo00 O !'imoc Z r < 0) • >51 pZ 0o O —I D —' - O O O 03 71 03 n Op c n mDJ D C c o > o (n O Z D m o0 Z CO ,r pmo p o 0 D N Z O O yo 0 D Z 4 Requested Council Date: 11 /11 /08 Alternate Date: 11/18/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving a supply agreement with Ergon Asphalt & Emulsions, Inc., Austin, Texas for emulsion oil in accordance with Bid Invitation No. BI -0221- 08, based on only bid, for an estimated six month expenditure of $66,235.00. The term of the contract will be for six months with an option to extend for up to five additional six -month periods, subject to the approval of the supplier and the City Manager or his designee. This material is used by Street Services for maintenance of City streets. Funds have been budgeted by Street Services in FY 08 -09. *********************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Purpose: The SS -1 emulsion oil is used by Street Services as a tack -coat for patch work on City streets. The agreement allows the City to pick up the material at the suppliers manufacturing plant in Pleasanton, Texas or for delivery to the Street Department storage tank located at the service center. Previous Contract: The option to extend the current contract was not exercised, due to the supplier no longer producing emulsion oil; therefore, requiring the receipt of new bids. Bid Invitations issued: Three Bids Received: One Price Analysis: When compared to the previous contract, pricing has increased approximately 57 %. The price increase is due to the continued tight market for petroleum products. The emulsion oil will be bought at a variable price, which will be tied to the rack price of Valero asphalt. The increase /decrease will be determined by a formula considering the change in the selling price to the bid price submitted at the rate of 70% of the change in the rack price of Valero asphalt per ton. Award Basis: Only Bid. Historically, two local manufacturers of emulsion oil have bid on this contract, Sem Materials and Texas Fuel & Asphalt. However, both local manufacturers no longer produce emulsion oil. Funding Street Department 520130- 1020 -12420 $6,623.50 520130- 1020 -12430 $59,611.50 Grand Total: $66,235.00 Mich?-1$arrera, /- Assistant Director.bf Financial Services —41— (I-SS) 110 UOlslnuzg \ 0 f 0 }\ -42- 5 Requested Council Date: 11 /11 /08 Alternate Date: 11/18/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the purchase of a Wide Area Mower and a Progator Sprayer, with a 300 gallon tank from John Deere Company, Cary, NC in the amount of $66,062.77. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The equipment will be used to maintain the fairways and putting greens at the Gabe Lozano Golf Course and Oso Golf Course. These items are replacements to the fleet. Funds have been budgeted by Parks and Recreation, Gabe Lozano Golf Center Fund and Oso Golf Course Fund for FY2008 -2009. *********************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** BACKGROUND: Purpose: Basis of Award: Funding: 11 Michael Barrera Assistant Director of Financial Services The wide area mower and progator sprayer will be used to maintain the fairways and putting greens at Gabe Lozano Golf Course and Oso Golf Course. The mower is a replacement to the fleet. It will replace 2 existing mowers and will cut an equivalent amount of grass in half the time. The replaced mower will be disposed of through standard disposal of surplus property procedures, including live auctions and/or electronic auctions. The progator sprayer for fertilizing is also a replacement to the fleet. However, the existing sprayer will be kept by the City and utilized for watering areas at the golf courses. The wide area mower and progator sprayer will be purchased through the cooperative purchasing agreements with the TLGPC. TLGPC acts as a purchasing agent for participating members through the Inter -local Cooperation Act and abides by all Texas statutes regarding competitive bidding requirements. Austin Turf and Tractor, Marble Falls, Texas will be the delivering, servicing and warranty provider for this equipment. Parks and Recreation Department 550020- 4690 -35200 $33,031.39 550020- 4690 -35210 33,031.38 Total $66,062.77 —45— CITY OF CORPUS CHRISTI PRICE SHEET PURCHASING DIVISION BI- 0066 -09 BUYER: MARIA PEDRAZA DATE: 11/11/08 ITEM DESCRIPTION 1. JD 1600T Wide Area Mower 2. JD 2020A Progator Sprayer w /300 gallon tank Grand Total: QTY. 1 UNIT Each Each John Deere Cary, NC 27513 Unit Extended Price Price -46- $41,941.13 $41,941.13 24,121.64 $24,121.64 $66,062.77 6 CITY COUNCIL AGENDA MEMORANDUM Date: November 11, 2008 AGENDA ITEM: A. Motion authorizing the City Manager or his designee to accept a grant in the amount of $100,964.38 from the State of Texas, Criminal Justice Division to continue the Violence Against Women Act (VAWA) grant within the Police Department for Year 9 with a city cash match of $38,952.37, in -kind match of $16,800 for a total project cost of $156,716.75 and to execute all related documents. B. Ordinance appropriating $100,964.38 from the State of Texas, Criminal Justice Division in the No. 1061 Police Grants Fund for funding available under the Violence Against Women Act (VAWA) Fund, transferring $38,952.37 from the No. 1020 Cash contribution to grants and appropriating it in the No. 1061 Police Grants Fund as grant matching funds, and declaring an emergency. ISSUE: Year 9 funding has been awarded from the State of Texas, Criminal Justice Division, under the Violence Against Women Act (VAWA) that provides funds to projects with the primary mission of reducing and preventing violence against women BACKGROUND INFORMATION: The grant continues support for the Family Violence Unit that utilizes officers and volunteers to contact family violence victims when a written report is made by a field officer or from a walk -in to the unit at the Police Department. The grant funds two victim case managers to contact victims who often fear retaliation and violence when the offender is released following arrest; contact with an advocate (case manager) can provide information conceming altematives, available services, and protective orders to avoid continued violence. The case manager serves to establish and encourage a working relationship between social agencies and the Police Department and provides educational opportunities to the community through speaking engagements, distribution of literature, etc. A Staff Assistant handles the processing of Emergency Protective Orders. The long term goal of the grant is to provide victims of domestic violence and other serious crimes with crisis intervention, follow up assistance, encourage cooperation with law enforcement, facilitate utilization of available resources, and assist with immediate and long -term safety needs. REQUIRED COUNCIL ACTION: Accepting the grant award. PREVIOUS COUNCIL ACTION: Approval to submit the application on February 26, 2008. FUNDING: The grant provides partial salary and benefits for two Victim Case Managers and a full time Staff Assistant. The State provides $100,964.38 and the City $55,752.37 which may be in- kind or cash contribution. We are utilizing the volunteer hours from other agencies Child Protective Services, Police volunteers, etc. to provide $16,800 toward the match. The City provides $38,952.37 for training, travel, supplies and miscellaneous equipment. The funding is not on a declining percentage or ending funding cycle. CONCLUSION AND RECOMMENDATION: Staff recommends accepting the grant award. Bryan P. Smith Chief of Police -49- S T A T E O F T E X A S O F F I C E O F T H E G O V E R N O R Rick Perry Governor October 23, 2008 Mr. Bryan Smith Corpus Christi, City of' Post Office Box 9016 Corpus Christi, Texas 78469 Dear Chief Smith: I am pleased to announce a grant award for $100,964.38 to your organization for the following project: Victim Assistance Program. My Criminal Justice Division is working to ensure that communities throughout the state receive the resources to make Texas a safer place. CJD- funded programs promote help and healing for crime victims, provide safe places and positive role models for young Texans, enforce laws that protect citizens and expand training opportunities for Texas criminal justice professionals. Your project contributes to these efforts. Instructions for activating your grant online at https: / /cjdonline.governor.state.tx.us should have come to you already by email. Please call my Criminal Justice Division at (512) 463 -1919 if you have any questions. Sincerely, Rick Perry Governor RP:cb 1517110 POST OFFICE BOX 12428 AUSTIN, TEXAS 78711 (512)db -1919 (VOICE) / (512) 475- 2940 ( FAX) /DIAL 7 -1 -1 FOR RELAY SERVICES Grant Number. Program Fund: Grantee Name: Project Title: Grant Period: Liquidation Date: Date Awarded: CJD Grant Manager: WF- 08 -V30- 15171 -10 WF- 16.588 Violence Against Women Formula Grants PREVIEW - Corpus Christi, City of - PREVIEW - Victim Assistance Program 09/01/2008 - 08/31/2009 11/29/2009 10/23/2008 Mary Hightower CJD Award Amount: Grantee Cash Match: Grantee In Kind Match: Total Project Cost: $100,964.38 $38,952.37 $16,800.00 $156,716.75 The Statement of Grant Award is your official notice of award from the Governor's Criminal Justice Division (CJD). The approved budget is reflected in the Budget/Details tab for this record in eGrants. The grantee agrees to comply with the provisions of the Governor's Criminal Justice Division's rules in Title I, Part I, Chapter 3, Texas Administrative Code in effect on the date the grant is awarded By clicking on the 'Accept' button within the 'Accept Award' tab, the grantee accepts the responsibility for the grant project and agrees with the following conditions of grant funding. The grantee's funds will not be released until the gran tee has satisfied the requirements of the following Condition(s) of Funding and Other Fund- Specific Requirement(s), if any, cited below Conditlon(s) of Funding and Other Fund - Specific Requirement(s): -51- ORDINANCE APPROPRIATING $100,964.38 FROM THE STATE OF TEXAS, CRIMINAL JUSTICE DIVISION, IN THE NO. 1061 POLICE GRANTS FUND FOR FUNDING AVAILABLE UNDER THE VIOLENCE AGAINST WOMEN ACT (VAWA) FUND, TRANSFERRING $38,952.37 FROM THE NO. 1020 CASH CONTRIBUTION TO GRANT AND APPROPRIATING IT IN THE NO. 1061 POLICE GRANTS FUND AS GRANT MATCHING FUNDS; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $100,964.38 is appropriated from the State of Texas, Criminal Justice Division, in the No. 1061 Police Grants Fund for funding available under the Violence Against Women Act (VAWA) Fund, transferring $38,952.37 from the No. 1020 Cash contribution to grant and appropriating it in the No. 1061 Police Grants Fund as grant matching funds, and declaring an emergency. SECTION 2. That upon written request of the Mayor or five Council Members, the City Council (1) finds and declares an emergency due to the need for immediate action for the efficient and effective administration of City affairs; and, (2) suspends that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings, so that this ordinance is passed and takes effect as an emergency measure upon its first reading, this the _ day of November, 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa. City Secretary Henry Garrett. Mayor Approved as tofertn October 24 2008 T. Trisha Dang Assistant City Attorney For City Attorney —52-- TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the attached ordinance, an emergency exists requiring suspension of that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings. Therefore, I /we request that you suspend said Charter rule and finally pass this ordinance on the date of its introduction, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members Henry Garrett Mayor, City of Corpus Christi The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon —53— CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 11/11/2008 AGENDA ITEM: A. Motion authorizing the City Manager or his designee to accept a grant in the amount of $484,856 from the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) for funding available under the COPS 2008 Child Sexual Predator Program, funds to be used to reduce child endangerment with a city in -kind contribution of $10,000 and to execute all related documents B. Ordinance appropriating $484,856 from the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) for funding available under the COPS 2008 Child Sexual Predator Program, funds to be used to reduce child endangerment, in No. 1061 Police Grants Fund with a city in -kind contribution of $10,000 and declaring an emergency. ISSUE: Funds have been awarded from the COPS Office to establish and /or enhance strategies to locate, arrest, and prosecute child sexual predators and exploiters as well as enforce state sex offender registration laws. PREVIOUS COUNCIL ACTION: Approval to submit the grant on 7/8/2008. REQUIRED COUNCIL ACTION: Approval to accept the grant and appropriate the funds FUNDING: There is no cash match required of the grant. The grant will pay all salaries associated with the hiring of two additional swom officers for a full two year period from their academy trainee hiring date of January, 2009. The grant also provides funds for an additional civilian Application Specialist to work with the Computer Crimes Unit. Computer equipment, supplies, and training travel is also included. The General Fund Police budget will provide $10,000 for the officers' equipment after graduation (body armor, weapon, badge, clothing, etc.) and fuel and maintenance on vehicles. Funds are available for a 2 -year period beginning October 1, 2008. CONCLUSION AND RECOMMENDATION: Staff recommends approval to accept the grant and appropriate the funds Attachments: • Award document —57— Bryan P. Smith Chief of Police BACKGROUND INFORMATION These funds have been made available to agencies specifically invited by the United States Attorney's Offices. Applicants must partner with the district United States Attorney's Office as well as demonstrate other partnerships with the United States Marshal. The Police Department was one of only 23 cities across the nation and the only city in the State of Texas to receive the grant. The Corpus Christi Police Department (CCPD) is an affiliate agency of the U.S. Department of Justice's Internet Crimes Against Children Task Force (ICAC) with an existing MOU with the Texas Attorney General's Regional ICAC Unit. The vision of the CCPD Children Sexual Predators and Exploiters (CSPE) Grant is two -fold: to reduce opportunity for child sexual predators to strike South Texas children; and, to improve capacity to investigate Internet crimes against children. There are five goals: 1. Increase and improve the Police Department's capacity to detect, locate, investigate arrest and prosecute Child Sexual Predators and Exploiters via the hiring and training of 2 sworn officers and a forensic computer analyst. They will supplement the current Police staff of one sworn officer and a forensic computer analyst. 2. Improve capacity to monitor Child Sexual Predators on probation and parole through home visits (community policing) and with the use of computer monitoring initiatives, such as ISP tracking and computer software. 3. Initiate more proactive investigations using undercover and online investigations, conducted in partnership with partner agencies, especially the FBI, Immigration and Customs Enforcement (ICE), and Attomey General's Office. 4. Maintain excellent collaborative relationships already built with regional partner agencies, including the U.S. Attorney Office and the U.S. Marshal, and Child Sexual Predator prosecutors throughout South Texas by providing more resources, technical assistance, information, joint meetings, and training activities and materials to strengthen their effectiveness. 5. Increase outreach and educational activities via a community policing approach that builds greater awareness and proactively halts Child Sexual Predators through preventive measures. Additional_staff will double the Police Department's capacity to detect, locate, investigate, arrest and prosecute child sexual predators. It will also add monitoring of probationary and paroled offenders and boost proactive awareness and training activities. -58- U.S. Department of Justice Office of Community Oriented Policing Services (COPS) Office of the Director 1100 Vermont Ave., NW Washington, DC 20530 October 10, 2008 Chief of Police Bryan Smith Corpus Christi Police Department 321 John Sartain Corpus Christi, TX 78401 Re: CSPP Grant #2008CSWX0020 ORI #: TX17802 Dear Chief of Police Smith: Congratulations! On behalf of the Department of Justice, I am pleased to inform you that the COPS Office has approved your agency's request for funding under the COPS Child Sexual Predator Program (CSPP). Enclosed in this packet is your grant award. The award document must be signed and returned to the COPS Office within 90 days to officially accept your grant. On the reverse side of the grant award is a list of conditions that apply to your grant. You should read and familiarize yourself with these conditions. This package also contains other important information to assist with the implementation of your grant, including your Grant Owner's Manual. The official start date of your grant is 9/1/2008. Therefore, you can be reimbursed for approved expenditures after this date. Please carefully review your financial clearance memorandum to determine your approved budget, as some of your requested items may not have been approved by the COPS Office during the budget review process, and grant funds may only be used for approved items. Please be aware that any vendor or contractor who participated in drafting your grant application may not receive federal funding for any procurement under this award. Within a few weeks, you will receive a PAPRS package from the Office of the Comptroller, Office of Justice Programs This important package will contain forms and instructions necessary to begin drawing down funds for your grant. Once again, congratulations on your CSPP award. If you have any questions about your grant award, please do not hesitate to call your Grant Program Specialist through the COPS Office Response Center at 1.800.421.6770. Sincerely, Carl R. Peed Director -59- U. S. Department of Justice Community Oriented Policing Services Grants Administration Division (GAD) ChildSextialPredatorProgram Treasury Account Symbol (TAS) 15X0406 ofrant git2008CSWX0020 • • Qpi t: TX17802 ,,..,„:„.. . ... Applicant Dtgamptioii's Lcgal•Name.::Corpos ChfiStiPolieeDepartnielif — - . . n. ,.;.:.: :: : := .. . • --Oaf Vendor #41 746000574 Law Enforcement Executive: Chief of Police Bryan P. Smith Address: 321 John Sartain City,State,Z0*:._PaChneUrTX78401 T.e.frilheineslAIT:$86-2,694 Government Executive: City Manager George K. Noe Address: 1201 Leopard Street, 5th Floor P.O. Box 9277 ,City, State, Zip Code: Corpus Christi, TX 78469 Award §Mit Date. •i9t008 ....... ........... Teti:Soitg: (30)/826,3220 .. . Fat (3:61) 880,3.839 ..- Award End Date: 8/31/2010 ....... Award Anicitintitim:i" . •484,8561/131; ................ Carl R. Peed, Director SEP 1 6 2008 Bryan P. SMith, Chief of Pdlice / Signatureof Law Enforcement Official with the Typed Name and Title of Law Enforcement Authority to Accept this Grant Award Official Date Angel R.Escobar, Interim City Manager Stgnature of Government Official with the Authority to Typed Name and Title of Government Official Date .. • Aceritthit:Otatit Award False statements or claims made in connection with cpps:.gpn smay:Tesult in fines, imprisonment, debarment from participating in federal grants or contracts, and/or any aVailalife by law to the Fedefa rBovemment -6 0-- Aw.ard ID: 87351 U.S. Department of Justice Office of Community Oriented Policing Services Child Sexual Predator Progrant (CSPP) Grant Terms and Special Conditions By signing the Award Documerttto accept tbi; C$FP grant, your agency agrees to abide by the fotlowing- grantconditions: 1. The grantee agrees to ctimply;wnhthe ternis-:conditions and regulattorisas found it111ie- COPS:Child Sexual Predator Program,Orant Owner's Manoal, the COPS: statute (42 U.S.0 § 3796dd) };$8 C g R. Part:661OMB;Cwcular 4102) or28 C.F.R. Part 70 (OMB Circular 4110) as applicable (governing.administtative requirements hrgranfs and ... cooperative agreements), Z.C.F;L Part 225 (OMB Circular A -87), 2 C.F.R. Part 220 (OM" Circular A -21), 2 C.F.R Part 230 (OMB Circular A 122 }:and 48 C.KR. Part 51:00.0r-• et seq. (FAR 312);ac applicable (governing cost principles); OMB Circular 4133 (governing audits); these award conditions; other represemationarnade m thegrati applicationfortthe Chiid'Sexual Predator Program; and with all applicable program requirements, laws, orders, regulations, or circulars. 2. The grantee acknowledges its agreement to comply with the;Assuranees and Cettrfientions forms that were signed and submitted as part of its Child Sexual Predator Program application. The fundtngunderth}is project is for the payment of approved costs feractivitiesielated to the estabhshment and enhaneentent of a variety of problem solving strategies to :: reduce ehsld:endangerwitent The .allowable spats for whichyottnageneY ?s grant has been approved are limitedly those listed on the Financial Clearanoe:Memorandum, which is :... • iiisltidadi. your:,a..- -- award:pardcet .:::.:. .... ..... .. ':4: Travel torts for.: transportation, lodging and subsistence, and related items are allowable under the Child Sexual Predator Program with prior approval from the CAPS Office Payment for allowable travel costs will be in accordance with 2 C.F.R. Part 225 (OMB Circular A -87, Cost Principles for State, Local, and Indian Tribal Governments), 2 :... C.F.R Part 220 (OMB Circular 421, Cost Principles for Educational lnstituhans) 2 C.RR Part.27D (OMB Circular Ael2Z Cost Principles for Non -Profit Organizations), and - -` 48 C.F.R. Part 31.000, et seq. (FAR -31.2, Cost Principles for Commercial bigamzatiotss)' 0s apphoabte 5. State and local governmentsinust tiro Chrfd SaxualPredatorProgram grantfands to supplement state; local or'Bureau of Indian Affairs funds that are already committed or otherwise wottld;has!e.been:cotntmttedfor ant: u osea hiri tratmn - urehas . . - ) g a grant p .. Y . gr p rp ( rig, g,.p esantlror acUVities dunn� ;the ant eMOd. In other words, gtemeeg tiro not use COPS funds to sgppla.ut (replace) itat4:local or BUre.2u of Indian Affairs funds that would have been dedicated to the COPS - funded item(a)�in the absence fthe (,`OPS grant. • 6 -Your ageney.mayinquest an.extension of the grant award period to receive additional time to implement your grant program. Such exterisiOni da.Hot ptobideadditiorml funding Qtily,fhoseagantees that can provide a reasonable justification for delays will be granted no -cost extensions. Extension requests must be r¢cervedp nor ry the end dn1¢ of the award as extension requests received after an award has expired will be approved only under very limited circumstances.'" - 7. Occasionally, a change in an agency's fiscal or law ad:gm/ h ent iattatiogtlecessitatesa change in its Child Sea3tat Predator Program award. Grant modifications under the CSPP grant program are evaluated on a case {iy:•saee.basiscAll iiiodificattonrequeatsrnvolvi .ngthepurchase or hire of new budget itams_or personnel must be approved, in writing, by the COPS:Office prior to their implementation. In 'addition please be aware thatthe COPS.Office:wi l not approve anymodif cattmtrequest that results in an .... increase tfederal;fuuilg, ............ t871e COPS.Otkicamay conduct mondonng Aisponsor national evaluations of the COPS Child Sexual Predator Program 'fhe granteeagraes to cooperate with the monitors ::•: and 0alu44's ....: _ - ... '9. Taassist the COPS Office in the monitoring of your award, your agency will be responsible for submitting periodic programmatic progress reports and quarterly financi reports. 10. The COPS Office performs: Sarwpsfuncttona to ensure.:gompliabce with all grant requiremente to- aaaess the�.implementation of community policing in awarded jurisdictionsi :and to provlda teclmtcal assistati4eto grantees. :Grant mortnoruigachvniesareroutma daring the grant period and.may.occur uptothree years following the official cliiwee:af the gratit :: ,.. These funetjans and others, often regttireYha prodiiition of gt' stir- relateddocomemafion and:other:matertafs AsaCOPS CSPPgratltee ,you agree to:tecperate:with any:suchrequests forjtiformation. '11 Grantees -[,hat have 50or more employees and a single award of $500,000 or more must submit an acceptable Equal Employment Oppattunuy Ptan(EEOP)or ESOP short form, if regrind to submit an EEOP under28 C.F.R. 42.302, that is approved by the Office of iustice Programs, Office of Civil Rights, within 60 days.of notification of the" ' award. 12. Grantees using Child Sexual Predator Program fundsta operate ansmerjisrisdiehonal criminal intelligence systemmust comply with operating principles of28 C.F.R. Part 23. The grantee acknowledges that it has completed, sinned and submitted with its grant aophcation the: relevant. Special Condition certifying its compliance with 28 C.F.R. Part 23. 13: Grantees nihobave beenewerded fundingforthe procurement of an item (or group of items) or service in excess of 5100,000 and who plan to use a non - competitive .procurement proceswmust provide a written sole source justification to the COPS Office for approval prior to obligating, expending; or drawing dowmgrant ftndifor that item ...._ :t4. To support the development of partnerships and the sharing of information and strategies, all Child Sexual Predator Program grantees will be required to attend a COPS sponsored technical assistance "kickoff' conference (date and time to be detertnined) 15. The grantee agrees to complete and keep on file, as appropriate. .a Bureau of Citizenshivand Immigration Services Employment Eligibility Verification Form (I -9). This form is to be used byrecipieats ;offederal fuedsto verify that persons aredligible to work in the United States._... - 16. If applicable ti tha grantee'Okoleet, the grantee agrees to comply with the requirements and guidelines established by the Office of Set Offendet!Sentencing Monnonng, Apprehending. . Regtstermg,:and:T acking (the:SMART Office), a component of the DOJ Office of Justice Programs. The SMART Offteets authonzed bylaw toadmimsterthe. standards for. •sex of`ende registration and notification that are set forth in the Sex Offender Registration and Notification Act ( SORNA) Title l"ofthe Adam Walah:Chtld Protection and-Safety Aot of2006 (Public Law 248 -109). [Please note that SORNA applies only to projects involving sex offender registration and bdttfication,and does not apply to J ects that fund costs associated only with investigations or rosecutions ' 17. False statements or claims made in connection with COPS; grants may regislt to fines; imprisonment, or debarment from participating in federal grants or contracts, and/or any other remedy available by law. —61— U. S. Department of Justice Community Oriented Policing Services Grants Administration Division (GAD) Child Sexual Predator Program 7100 Vermont Avenue, NW Washington, DC 20530 Memorandum To: Chief of Police Bryan P. Smith Corpus Christi Police Department From: Andrew A. Dorr, Assistant Director for Grants Administration Bernard Williams, Grant Program Specialist Budget Prepared By: Katrice Hagan, Grant Program Specialist Re: Child Sexual Predator Program Financial Clearance Memo A financial analysis of budgeted costs has been completed. Costs under this award appear reasonable, allowable, and consistent with existing guidelines. Exceptions / Adjustments are noted below. OJP Vendor #: 746000574 ORI #: TX17802 Grant #: 2008CSWX0020 Budget Category Personnel Fringe Benefits Travel/Training Equipment Supplies Other Proposed Budget $293,456.00 $115,100.00 $34,800.00 $24,200.00 $4,800.00 $15,404.00 Approved Budget $293,456.00 $115,100.00 $34,800.00 $24,200.00 $4,800.00 $12,500.00 Adjustments $0.00 $0.00 $0.00 $0.00 $0.00 $2,904.00 Direct Costs: $487,760.00 $484,856.00 $2,904.00 Grand Total $487,760.00 $484,856.00 $2,904.00 Grand Total: Federal Share: $ 484,856.00 Applicant Share: $ 0.00 Cleared Date: 9/4/2008 Overall Comments: The total project cost was reduced by $2,904 due to Overtime associated cost for FICA, Medicare, and retirement. No contact was made. -62- ORDINANCE APPROPRIATING $484,856 FROM THE U.S. DEPARTMENT OF JUSTICE, OFFICE OF COMMUNITY ORIENTED POLICING SERVICES (COPS) FOR FUNDING AVAILABLE UNDER THE COPS 2008 CHILD SEXUAL PREDATOR PROGRAM, FUNDS TO BE USED TO REDUCE CHILD ENDANGERMENT, IN THE NO. 1061 POLICE GRANTS FUND WITH A CITY IN -KIND CONTRIBUTION OF $10,000; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $484,856 is appropriated in the No. 1061 Police Grants Fund from the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS) for funding available under the COPS 2008 Child Sexual Predator Program, funds to be used to reduce child endangerment, with a city in -kind contribution of $10,000; and declaring an emergency. SECTION 2. That upon written request of the Mayor or five Council Members, the City Council (1) finds and declares an emergency due to the need for immediate action for the efficient and effective administration of City affairs; and, (2) suspends that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings, so that this ordinance is passed and takes effect as an emergency measure upon its first reading, this the day of November, 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved as to form November 3, 2008 / T. lffisha Dang Assistant City Attorney For City Attomey —63— TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the attached ordinance, an emergency exists requiring suspension of that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings. Therefore, I/we request that you suspend said Charter rule and finally pass this ordinance on the date of its introduction, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members Henry Garrett Mayor, City of Corpus Christi The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -64- 8 CITY COUNCIL AGENDA MEMORANDUM Date: 11/11/2008 AGENDA ITEM: A. Motion authorizing the City Manager or his designee to accept additional grant funding in the amount of $28,000 from the Executive Office of the President, Office of National Drug Control Policy, to support the Police Department's role in the Texas Coastal Corridor Initiative in the Houston High Intensity Drug Trafficking Area. B. Ordinance appropriating $28,000 in the No. 1061 Police Grants fund from the Executive Office of the President, Office of National Drug Control Policy to support the Police Department's role in the Texas Coastal Corridor Initiative in the Houston High Intensity Drug Trafficking Area; and declaring an emergency. ISSUE: The Office of National Drug Control Policy is providing additional funds for FY2008 for the City to participate in the Texas Coastal Corridor High Intensity Drug Trafficking Area Initiative (HIDTA). BACKGROUND INFORMATION: The Corpus Christi Police Department is in the eleventh year as a participant in the Texas Coastal Corridor High Intensity Drug Trafficking Area Initiative created by the Executive Office of the President, Office of National Drug Control Policy. The additional funds will assist the initiative in the disruption of narcotics trafficking. The program focuses on this specific geographic area because it serves as a conduit for narcotics into Corpus Christi and other metropolitan cities as well as a location for money launderers to conduct illegitimate businesses with a consumer base that affects the local population with residual crime. Other agencies participating are the Nueces County Sheriffs Department,Texas Department of Public Safety, Drug Enforcement Administration, Internal Revenue Service, U. S. Customs, and the Bureau of Alcohol, Tobacco, and Firearms. The initiative focuses on the identification and disruption of narcotics trafficking organizations operating in the counties of Aransas, San Patricio, Refugio, Nueces, Kleberg, Kenedy, Jim Wells, Brooks, and Victoria. It is anticipated that shipments of narcotics through this area will be disrupted and long entrenched families of narcotics traffickers will be apprehended. The profits from the sales of narcotics will be identified and seized and the intelligence gathered will be downloaded and shared with other Drug Trafficking Initiatives across the country. ADDITIONAL SUPPORT MATERIAL Award Document x —67— Bry : P. Smith Chief of Police Executive Office of the President Office of National Drug Control Policy AWARD Grant Page 1 of 1 1. Recipient Name and Address Chief Bryan Smith Corpus Christi Police Department 321 John Sartain Street Corpus Christi, TX 78403 4. Award Number: I7PHNP517Z 5. Project Period: 01/01/2007 to 12/31/2008 Budget Period: 01/01/2007 to 12/31/2008 IA. Recipient IRS /Vendor No. 1746000574A5 6. Date: 08/08/2008 7. Action O Initial 2. Subrecipient Name and Address 8. Supplement Number 2 ►'7 Supplemental 2A. Subrecipient IRS /Vendor No. 9. Previous Award Amount $142,500.00 3. Project Title Texas Coastal Corridor Initiative Initiative(s) 10. Amount of This Award $28,000.00 11. Total Award $170,500.00 12. Special Conditions The above grant is approved subject to such conditions or limitations as are set forth in the original Grant. 13. Statutory Authority for Grant: Public Law 110 -5 AGENCY AI'PROVAI. RECIPIENT ACCEPTANCE 14. Typed Name and Title of Approving ONDCP Official David R. Murtaugh Office of National Drug Control Policy 15. Typed Name and Title of Authorized Recipient Official Chief Bryan Smith Corpus Christi Police Department 16. Signature of Approving ONDCP Official 18. Accounting Classification Code DUNS: 069457786 EIN: 1746000574A5 17. Sig u uthorized Recipient Date 19. HIDTA AWARD -68- Executive Office of the President Office of National Drug Control Policy AWARD Grant page 1 of 1 1. Recipient Name and Address Chief Bryan Smith Corpus Christi Police Department 321 John Sartain Street Corpus Christi, TX 78403 4. Award Number: I7PHNP517Z 5. Project Period: 01/01/2007 to 12/31/2008 Budget Period: 01/01/2007 to 12/31/2008 1A. Recipient IRSNendor No. 1746000574A5 6. Date: 08/08/2008 7. Action ❑ Initial 2. Subrecipient Name and Address 8. Supplement Number 2 iN Supplemental 2A. Subrecipient IRS /Vendor No. 9. Previous Award Amount $142,500.00 3. Project Title Texas Coastal Corridor Initiative Initiative(s) 10. Amount of This Award $28,000.00 11. Total Award $170,500.00 12. Special Conditions The above grant is approved subject to such conditions or limitations as are set forth in the original Grant. 13. Statutory Authority for Grant: Public Law 110 -5. AGENCY APPROVAL RECIPIENT ACCEPTANCE 14. Typed Name and Title of Approving ONDCP Official David R. Murtaugh Office of National Drug Control Policy 15. Typed Name and Title of Authorized Recipient Official Chief Bryan Smith Corpus Christi Police Department 16. Signature of Approving ONDCP Official 17. Signaturt f is on ed Recipient ,Date Airy /03Ag 19. HIDTA AWARD 18. Accounting Classification Code DUNS: 069457786 EIN: 1746000574A5 -69- ORDINANCE APPROPRIATING $28,000 IN THE NO. 1061 POLICE GRANTS FUND FROM THE EXECUTIVE OFFICE OF THE PRESIDENT, OFFICE OF NATIONAL DRUG CONTROL POLICY TO SUPPORT THE POLICE DEPARTMENT'S ROLE IN THE TEXAS COASTAL CORRIDOR INITIATIVE IN THE HOUSTON HIGH INTENSITY DRUG TRAFFICKING AREA; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $28,000 is appropriated in the No. 1061 Police Grants Fund from the Executive Office of the President, Office of National Drug Control Policy to support the Police Department's role in the Texas Coastal Corridor Initiative in the Houston High Intensity Drug Trafficking Area; and declaring an emergency. SECTION 2. That upon written request of the Mayor or five Council Members, the City Council (1) finds and declares an emergency due to the need for immediate action for the efficient and effective administration of City affairs; and, (2) suspends that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings, so that this ordinance is passed and takes effect as an emergency measure upon its first reading, this the day of November, 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved as to form ktafielL Z 6 , 2008 T. T a Dang ..A sistant City Attorney For City Attorney -70- TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the attached ordinance, an emergency exists requiring suspension of that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings. Therefore, I/we request that you suspend said Charter rule and finally pass this ordinance on the date of its introduction, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members Henry Garrett Mayor, City of Corpus Christi The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -71- CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution authorizing the submission of a grant application in the amount of $16,.300 to the Texas Department of Public Safety, Governor's Division of Emergency Management, Preparedness (HMEP) Grant Program for public awareness brochures, school book covers, coloring books, and to conduct emergency response exercises with a hard match of $3,260, and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant. ISSUE: Nueces County is a highly industrialized community with a high risk for emergencies involving hazardous materials. Nueces County has major hazardous material highway transportation routes (i.e. IH -37; US 77; US 181), hundreds of miles of pipelines (represented by 69 companies), major railways (TexMex and Union Pacific), over 10 major petroleum/chemical plants, a military base, and the 7th largest port in the U.S. In 2006, over 300 facilities reported using, storing, or manufacturing a hazardous substance or extremely hazardous substance above its Threshold Planning Quantity. Over 90 percent of the County's 317,000 people live within 10 miles of a "high risk" area. The general public requires constant education on the potential risks and proper actions to take in a chemical emergency; additionally local responders need continual training and practice in responding to such an event. REQUIRED COUNCIL ACTION: Approval of Resolution as presented. PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends approval of the resolution authorizing the City Manager, or his designee, to submit a grant application in the amount of $16,300 to the Texas Department of Public Safety Division of Emergency Management for Hazardous Materials Emergency Preparedness Planning, which will require a 20% City hard match of $3,260. RichardTiboks Fire Chief Attachments: 1. Resolution 2. Application C: \Documents and Settings\Rickk\My Documents \LEPC \Grant o9\Agenda Item Grant applcation.doc —75— BACKGROUND INFORMATION The United States Department of Transportation, passed through the Governor's Division of Emergency Management, annually offers the Hazardous Materials Emergency Preparedness grant for Local Emergency Planning Committees (LEPCs) in Texas. The City of Corpus Christi / Nueces County LEPC has utilized these grants to conduct public outreach about hazardous materials and conduct emergency response exercises. C:\Documents and Settings\RickR \My Documents \LEPC \Grant o9\Agenda Item Grant applcation.doc _7g_ FY09 HMEP Planning Grant Application HMEP Application Coversheet Local Emergency Planning Committee 1 This can not be the LEPC Chair or grant manager. Recommend a member of the authorized fiscal agent. 2 This is the county or city fiscal agent that will manage of any and all moni7es awarded under this grant. See paragraph 6. -7- 1. APPLICANT INFORMATION PLEASE TYPE ALL INFORMATION a. Legal Name of LEPC county or city: City of Corpus Christi!Nueces County LEPC Geographic area covered: Nueces County b. Name of Grant Manager: Maricela Cuevas, LEPC Administrator Address: 2406 Leopard St., Suite 200 Corpus Christi, TX 78408 e-mail address: marim @cctexas.com Telephone: 361 -826 -3960 Fax: 361 -887 -7385 c. Name of person writing final summary letter: Maricela Cuevas, LEPC Administrator Address: 2406 Leopard St., Site 200 Corpus Christi, TX 78408 e -mail address: marim @cctexas.com Telephone: 361 -826 -3960 Fax: 361 - 826487 -7385 d. Name of person who will administer funds': Rick Ramos, LEPC Finance Committee Chairperson Address: 2404 Leopard St., Suite 300 Corpus Christi, TX 78408 e -mail address: rickr @cctexas.com Telephone: 361-826-3938 Fax: 361 -887 -8053 e. County or City's Vendor Identification Number: 74- 6000 -754 2. CERTIFICATION To the best of my knowledge and belief, all information in this application is true and correct. The document has been duly authorized by the [county judge, mayor. city manager) and a majority vote of the Local Emergency serve The County /City of Corpus Christi will Planning Committee. as fiscal agent for the project and comply with all contractual obligations if assistance is provided. NAME OF LEPC CHAIR: Fire Chief Richard Hooks SIGNATURE/ % ''5 TELEPHONE: 361 -826 -3932 FAX: 361 -826 -4316 DATE: tolvolBJ% " NAME OF AUTHORIZED FISCAL AGENT2: Angel Escobar TITLE: Acting City Manager SIGNATURE TELEPHONE: 361 - 826 -3222 FAX: 261-826-3839 DATE: 3. DATE RECEIVED BY GDEM: 1 This can not be the LEPC Chair or grant manager. Recommend a member of the authorized fiscal agent. 2 This is the county or city fiscal agent that will manage of any and all moni7es awarded under this grant. See paragraph 6. -7- FY09 HMEP Planning Grant Application Project Narrative (Page 1 of 3) City of Corpus Christi /Nueces County Local Emergency Committee (Legal Name of LEPC county or city) Section 1: Problem Statement and Data (Limit to 100 words) Nueces County is a highly industrialized community with a high risk for emergencies involving hazardous materials. Nueces County has major hazardous material highway transportation routes (i.e. IH -37; US 77; US 181.), hundreds of miles of pipelines (represented by 69 companies), major railways (TexMex and Union Pacific), over 10 major petroleum /chemical plants, a military base, and the 7s' largest port in the U.S. In 2007 over 300 facilities reported using, storing, or manufacturing a hazardous substance or extremely hazardous substance above its Threshold Planning Quantity. Over 90 percent of the County's 317,000 people live within 10 miles of a "high risk" area. The general public requires constant education on the potential risks and proper action to take in a chemical emergency, as well as local responders needing continual training and practice to responding to such an event. Section 2: Goal Statement (Limit to 100 words) The LEPC is committed to using all mediums available to educate the public as to the potential risks and hazardous that are associated with the transportation, storage and use of hazardous materials. In addition, the LEPC will continue to educate the public on the proper actions to take in the event of a hazardous chemical accident or release. The LEPC will also continue in the coordination and planning of emergency response agencies, including organizing emergency response exercises. Section 3: Areas & Population Served (Limit to 100 words) The outreach portion of the project is expected to reach over 90% of people across all demographics of Nueces County (est. pop. 317,000) and its adjacent communities, employing several different delivery mediums. In addition, a portion of the project is specially aimed at reaching at least 25,000 Nueces County school children and their families living along major hazardous material transportation areas. A full scale exercise drill will be designed to test response capabilities of multiple urban and rural jurisdictions. -78-- FY09 HMEP Planning Grant Application Project Narrative (Page 2 of 3) Section 4: Planned Project Objectives (Limit to space below — do not use continuation page) The LEPC will contract with the book cover printing company that has exclusive supply agreements with the schools of Nueces County. They will work with the LEPC to print and distribute 25,000 covers with the LEPC chemical safety message in schools in or near "high risk" areas. The book covers will be delivered to schools in August 2009. Public awareness brochures will be printed and mailed through the City of Corpus Christi June utility bills. A full scale drill is planned to test the response capabilities of multiple jurisdictions, including: - Unified Command under the National Incident Management System. - Interoperability of communications. - Maz-Mat identification and isolation procedures. - Public Information distribution. - Test joint emergency response capabilities between the City of Corpus Christi emergency response agencies and rural Nueces County emergency response agencies. The LEPC will contract with a vendor to purchase 6,000 coloring books that illustrate what a chemical emergency is and how to shelter in place. The coloring books will be used at Elementary Schools through out Nueces County Section 5: Measurement & Evaluation (Limit to space below — do not use continuation page) The LEPC 2009 Outreach Campaign is expected to reach most, if not all, over 300,000 Nueces County residents, as well as many people from surrounding communities. The educational brochures in the utility bill mailings will reach approximately 89,000 households. There will be 25,000 book covers delivered to schools in "high risk" areas. The Pipeline brochure will be distributed during community events. The planned exercise will test the emergency plans of several response agencies. The success of the outreach campaign should be reflected by an increase in website traffic which is directly measured. The exercise success will be measured by the "After- action Report" conducted and evaluated by all response parties involved. Our most recent community survey (2006) concluded that only 55% of the people had seen information regarding how to prepare for a chemical emergency. 53% of people said they know enough about preparing for chemical emergencies, however, only 22% have done anything to prepare. The LEPC's goal is for 70% of the population to know about a personal Safety Plan and how to prepare and respond during a chemical emergency. The goal of the exercise is to promote inter - agency coordination of response plans and communications. —79— FY09 HMEP Planning Grant Application Project Narrative (Page 3 of 3) Section 6: Project Summary The LEPC continues to spread the message about the potential for chemical emergencies and what actions to take in the event of a chemical incident. A brochure has been developed for the 2009 mail -out. The LEPC stresses such messages as: Bee in the Know! (a play on words incorporating our bee mascot) Bee Prepared! — Have a Personal Safety Plan Bee Alert! — Chemicals are everywhere Bee Aware! — Know the sighs of a chemical emergency The brochure mail out in the City of Corpus Christi utility bill will reach approximately 89,000 households. Schools book covers will be delivered to 25,000 students in "high risk" areas. In addition to providing crucial emergency information, each advertising medium will also lead the audience to visit our website which contains more comprehensive safety information. An outdated Pipeline brochure will be updated with current information. 5,000 brochures will be printed and distributed to residents attending numerous community events through out the year where the LEPC will have their own information booth. The LEPC and "Ready Bee" will spread the message at Elementary Schools in Nueces County using the 6,000 coloring books to assist in letting the children know what to do during a chemical emergency. The LEPC has planned a multi- agency full scale drills to be designed and proctored by a professional emergency response training organization. The full scale drill will test the emergency operations plans and interoperability of several response agencies in both urban and rural Nueces County. The scenario will consist of a derailment of a railroad tanker carrying benzene. The accident has caused a potential for release of benzene and possible fire. Four different fire departments will response to the scene including the Corpus Christi Police Department, TCEQ, TGLO and NOAA. An after - action report conducted by all agencies involved will provide valuable feedback for the improvement of the agencies' response plans and preparations. (Limit to space above — do not use continuation page) -80- RESOLUTION AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION IN THE AMOUNT OF $16,300 TO THE TEXAS DEPARTMENT OF PUBLIC SAFETY, GOVERNOR'S DIVISION OF EMERGENCY MANAGEMENT, FOR THE 2009 HAZARDOUS MATERIALS EMERGENCY PREPAREDNESS (HMEP) GRANT PROGRAM FOR PUBLIC AWARENESS BROCHURES, SCHOOL BOOK COVERS, COLORING BOOKS, AND TO CONDUCT AN EMERGENCY RESPONSE EXERCISES, WITH A HARD MATCH OF $3,260, AND AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO APPLY FOR, ACCEPT, REJECT, ALTER OR TERMINATE THE GRANT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager, or his designee, is authorized to submit a grant application in the amount of $16,300 to the Texas Department of Public Safety, Governor's Division of Emergency Management, for the 2009 Hazardous Materials Emergency Preparedness (HMEP) Grant Program for public awareness brochures, school book covers, coloring books, and to conduct an emergency response exercises, with a hard match of $3,260, and is authorized to apply for, accept, reject, alter or terminate the grant. SECTION 2. In the event of the loss or misuse of these funds, the City of Corpus Christi assures that the funds will be returned, in full, to the Texas Department of Public Safety, Governor's Division of Emergency Management, Hazardous Materials Emergency Preparedness Grant Program. ATTEST: Armando Chapa City Secretary APPROVED: October 20, 2008. By: T. TrisHa Dang Assistant City Attorney For City Attorney -81- THE CITY OF CORPUS CHRIST! Henry Garrett Mayor Corpus Christi, Texas of 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -82- 2 10 AGENDA MEMORANDUM DATE: November 11, 2008 SUBJECT: ACCEPTING AND APPROPRIATING A GRANT IN THE AMOUNT OF $44,206.00 FROM THE TEXAS STATE LIBRARY AND ARCHIVES COMMISSION AGENDA ITEMS: a) Resolution authorizing the City Manager or designee to accept a grant in the amount of $44,206.00 and to execute a contract and all related documents with the Texas State Library and Archives Commission for the Loan Star Libraries Grant to be used as follows: $41,206.00 for books for all libraries; $2,000.00 for archival supplies for La Retama Central Library; and $1,000.00 for furniture for the Anita & W. T. Neyland Public Library. b) Ordinance appropriating a grant in the amount of $44,206.00 from the Texas State Library and Archives Commission into the Library Grants Fund No. 1068 to be used as follows: $41,206.00 for books for all libraries; $2,000.00 for archival supplies for La Retama Central Library; and $1,000.00 for furniture for the Anita & W. T. Neyland Public Library; and declaring an emergency. ISSUE: The state has made available $44,206.00 to the library as part of its Loan Star Libraries Grant program. The library will use these funds for books, archival supplies and furniture. Last years grant was $30,580.00. REQUIRED COUNCIL ACTION: Appropriation of funds require City Council approval. RECOMMENDATION: Staff recommends acceptance of grant and appropriation of funds. Herb Canales Director of Libraries —85— TEXAS STATE LIBRARY & ARCHIVES COMMISSION LOAN STAR LIBRARIES GRANT Grant Type B - $20,000 - $50,000 Grant Number: 442 -09111 I. CONTRACTING PARTIES Grantor: Texas State Library and Archives Commission (TSLAC) Grantee: City of Corpus Christi, Corpus Christi Public Libraries 805 Comanche St Corpus Christi, Texas 78401 II. TERM OF GRANT September 1, 2008 to August 31, 2009 (SFY 2009) III. STATEMENT OF SERVICES TO BE PERFORMED The Grantee aclmowledges that the intent of the grant is to provide funds to maintain, improve, and enhance local library services, and to provide Texans who are not residents of a particular community access to and services from the many participating public libraries in Texas. Grant funds must be used to meet TSLAC goals. The Grantee must report information relating to best practices and performance outcomes. The Grantee will comply during the period of this contract and provide services as outlined within the Plan of Action submitted by the Grantee (Loan Star Libraries Grant for State FY09) as approved by the Grantor. The approved Plan of Action becomes part of this contract by this reference. IV. GRANT AMOUNTS AND DISBURSEMENT REQUIREMENTS A. The total amount of the grant shall not exceed: $44,206.00 B. Source of funds: General Revenue, State Fiscal Year 2009 C. Payment for this grant will be funded in full upon delivery to Grantor a legally executed contract. Grantee should receive payment within 20 working days after the Grantor has received a fully executed contract and Grantee has fulfilled all requirements for preceding contracts. 11 The Grantee may not obligate or encumber grant funds after August 31, 2009. All obligations and encumbrances must be liquidated or paid no later than October 15, 2009. E. All unexpended grant funds $25.00 and over MUST be returned, in full, to TSLAC along with the Final Financial Status Report (FSR). See Section VII. B of this contract for FSR due dates. F. Interest earned in excess of $100 must be returned to Grantor, per requirements in the State of Texas Uniform Grant Management Standards (UGMS). G. The Grantee will add any program income to the funds committed to the grant, using such program income for the purposes and under the conditions of the grant. The source and amount of the program income must be explained in Section 9 of the TSLAC FSR. H. Per the approved grant application, funds are authorized according to the following budget: Personnel Fringe Benefits Travel Equipment/Property Supplies Contractual Other $44,206.00 Total Indirect Costs $44,206.00 Total $44,206.00 V. WRITTEN REQUEST FOR FISCAL AND PROGRAMMATIC CHANGES The Grantee must request written prior approval for fiscal and/or programmatic changes as outlined in this Section. Grantee must submit request for program and/or fiscal changes on the Loan Star Libraries Grant Program Revision Form. Under no condition may a Grantee request to exceed the total grant amount. Grantor must receive all change requests no later than July 31, 2009. Requests received after this date will be considered on a case -by -case basis. Grantee must receive written approval from Grantor before obligating or expending grant funds under any of the following conditions. A. Fiscal changes must have an approved Budget Revision under any of the following conditions: 1. Making cumulative transfers among budget cost categories or projects which are expected to exceed ten (10) percent of the total grant; and/or, 2. Transferring any funds into a budget cost category that currently equals zero ($0); and/or, FY 2009 Loan Star Libraries Grant -86- 1 of6 rn..tr- -. A _ con nnn _ ecn nnn 3. Changing the items listed in the approved budget categories if an item's cost or features are substantially different from what the approved grant application specifies, or from a previously approved fiscal or program revision. B. Programmatic changes to the approved application (Loan Star Plan of Action) must have an approved Program Revision under the following conditions: I. Obtaining the services of a third party to perform activities that are central to the purposes of the grant; and/or, 2. Changing the scope or objectives of the approved program, regardless of whether there is an associated Budget Revision. A change in scope is a substantive difference in the approach or method used to reach program objectives. VI. EQUIPMENT AND PROPERTY REQUIREMENTS A. Fiscal changes to items listed in the Equipment/Property category specified in Section IV. 11 of this contract require written prior approval. This is defined as the cost of the equipment and/or property, including any cost necessary to put the item into service, such as the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make the item usable for the purpose for which it is acquired. Ancillary charges, such as taxes, duty, protective in- transit insurance, freight, and installation may be included in, or excluded from the expenditure cost in accordance with the Grantee's regular accounting practices and Generally Accepted Accounting Practices (GAAP). B. The Grantee will comply with UGMS Part III, Subpart C, Sec. 32 (d)(3) requiring certain items of equipment to be maintained on inventory if the item's cost is between $500 and $1000. C. The Grantee agrees to submit the most current TSLAC Equipment/Property Acquired Form with the Final FSR, but no later than October 31, 2009, for all equipment/property purchased with grant funds during the FY08 grant year. This list must balance with the equipment/property purchased under the approved grant application and all subsequently approved Budget and/or Program Revisions. D. Grantee must furnish a statement to Grantor certifying the governing entity's capitalization level with the approved grant application. Grantee agrees to maintain records on all equipment/property with an acquisition cost above governing entity's capitalization level. E. Subject to the obligations and conditions set forth in the UGMS Part III, Subpart C, Sec. 32, title to equipment acquired under a grant will vest in the Grantee upon acquisition. Grantee must include any equipment/property acquired with grant funds in the required bi- annual property inventory, and follow the UGMS Part III, Subpart C, Sec. 32 (d) that requires the Grantee to reconcile the equipment/property records with a physical inventory of the equipment/property every two years. This bi- annual inventory does not need to be submitted to Grantor, but must be maintained by the Grantee and will be subject to review by Grantor. When property is vested in the Grantee, Grantee will dispose of equipment/property in accordance with the UGMS Part I11, Subpart C, Sec. 32 (e). When the Grantee has been given federally- or state -owned equipment/property, Grantee will follow the UGMS Part III, Subpart C, Sec. 32 (f). VII. REPORTING REQUIREMENTS The State Legislature has charged Grantor with submitting performance measurement reports that specify the level of services provided by its programs and services. In accepting the grant funds, the Grantee acknowledges responsibility for performing certain services on behalf of Grantor, as outlined in the approved Plan of Action. Therefore, the Grantee is responsible for submitting periodic reports that reflect the Grantee's level of performance on these services to Grantor. To comply with these requirements, the Grantee agrees to submit reports that are timely, accurate, auditable, and consistent with definitions. A. The Grantee agrees to submit the Loan Star Libraries Performance Report to Grantor no later than the due dates listed in the following schedule. If library materials ordered with grant funds are received by Grantee after the end of the grant year, a revised final Loan Star Libraries Performance Report may be required covering receipt of those materials. This revised final performance report will be due no later than November 15, 2009. Reporting Period Due Date September 1, 2008 - November 30, 2008 December 7. 2008 December 1, 2008 - February 28, 2009 March 7. 2009 March 1, 2009 - May 31, 2009 June 6, 2009 June 1, 2009 - August 31, 2009 September 5, 2009 B. The Grantee agrees to submit the TSLAC Financial Status Report form for the grant funded under this contract no later than the due dates listed in the following schedule. Grantee should submit a Final FSR once all grant funds have been expended and all program requirements are accomplished. Grantee should mark the last required FSR as "Final" and not submit any subsequent FSR forms. Reporting Period Due Date September I, 2008 - November 30, 2008 December 30, 2008 December 1, 2008 - February 28, 2009 March 31, 2009 March 1, 2009 - May 31, 2009 June 30, 2009 June 1, 2009 - August 31, 2009 September 30, 2009 If necessary, a revised Final FSR must be submitted no later than October 31, 2009. C. The Grantee will send the Grantor a copy of all management letters issued by an auditor with the reporting package. As specified in UGMS Part IV, Subpart B, Sec. 235(c), the audit shall be completed and submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the state agency that provided the funding or a different period is specified in a program - specific audit guide. The audit's Schedule of Expenditures of Federal and State Awards must list the amount of TSLAC awards expended for each award year separately. FY 2009 Loan Star Libraries Grant -87- 2of6 Contract B - $20,000 - $50,000 VIII. GENERAL TERMS AND CONDITIONS A. The Grantee will comply with the Loan Star Library Grant Program Guidelines for SFY 2009. B. The Grantee will comply with the Title 13, Part 1, Chapter 2, Subchapter C, Division 8, Rules 2.810 — 2.815 regarding the Loan Star Grant Program and Title 13, Part 1, Chapter 2, Subchapter C, Division 1, Rules 2.110 — 2.119 regarding General Grant Guidelines. Loan Star Libraries Administrative Rule 2.815 (c) states, "If a library has certified that it provides service to non - residents without charge or it has elected to participate in the TexShare card program, the library must maintain these services for the duration of the contract that it received." This means the Library shall provide the same library services and may impose the same restrictions on non - resident customers as it does for those customers who live locally. Texas Government Code, Section 441.138(c), states, "State aid to a free tax- supported public library is a supplement to and not a replacement of local support." C. The Grantee will comply with the following parts of the Governor's Office of Budget and Planning, UGMS revised June 2004, located at: http : / /www..eovernor.state.tx.us/ divisions /stategrants /guidelines /files /UGMS062004.doc. Part I. Cost Principles for State and Local Governments and Other Affected Entities (Adapted from OMB Circular A -87). Part II. State Uniform Administrative Requirements for Grants and Cooperative Agreements (Adapted from OMB Circulars A -102 and A -122). Part BI. State of Texas Single Audit Circular (Adapted from OMB Circular A -133). D. All publicity relating to the grant award must include acknowledgement of the Texas State Library and Archives Commission whenever possible and practical. Publicity includes, but is not limited to press releases, media events, public events, displays in the benefiting library, announcements on the Grantee's website, and materials distributed through the grant project. The Grantee will provide Grantor with one set of all public relations materials produced under this grant with the Final FSR. E. Grantee understands that acceptance of funds under this contract acts as acceptance of the authority of the State Auditor's Office, or any successor agency, to conduct an audit or investigation in connection with those funds. Grantee further agrees to cooperate fully with the State Auditor's Office or its successor in the conduct of the audit or investigation, including providing access to any information the state auditor considers relevant to the investigation or audit. Grantee will ensure that this clause concerning the authority to audit funds received indirectly by Sub - grantees through Grantee, and the requirement to cooperate, is included in any sub -grant awarded. The Grantee agrees to maintain all financial and programmatic records, supporting documents, statistical records, and other records relating to this grant award for a minimum of three years after Close of Grant. Close of Grant is defined for this grant as the date Grantee submits to Grantor the Final FSR for the contract grant period. IX. ENFORCEMENT A. Remedies for noncompliance. If a Grantee or Sub - grantee materially fails to comply with any term of an award, whether stated in a state statute or regulation, an assurance, in a state plan or application, a notice of award, or elsewhere, Grantor may take one or more of the following actions, or impose other sanctions, as appropriate in the circumstances: 1. Temporarily withhold cash payments pending correction of the deficiency by the Grantee or Sub - grantee, or more severe enforcement action by Grantor; 2. Disallow (that is, deny both use of funds and matching credit for) all or part of the cost of the activity or action not in compliance; 3. Wholly or partly suspend or terminate the current award for the Grantee's or Sub - grantee's program; 4. Withhold further awards for the program; or 5. Take other remedies that may be legally available. Hearings, appeals. In taking an enforcement action, Grantor will provide the Grantee or Sub - grantee an opportunity for such hearing, appeal, or other administrative proceeding to which the Grantee or Sub - grantee is entitled under any statute or regulation applicable to the action involved. Effects of suspension and termination. Costs of Grantee or Sub- grantee resulting from obligations incurred by the Grantee or Suo- grantee during a suspension or after termination of an award are not allowable unless Grantor expressly authorizes them in the notice of suspension or termination, or subsequently. Other Grantee or Sub - grantee costs during suspension or after termination which are necessary, and not reasonably avoidable, are allowable if: 1. The costs resulting from obligations which were properly incurred by the Grantee or Sub - grantee before the effective date of suspension or termination are not in anticipation of it and, in the case of a termination, are non- cancelable; and, 2. The costs would be allowable if the award were not suspended, or expired normally at the end of the funding period in which the termination takes effect. Relationship to Debarment and Suspension. The enforcement remedies identified in this section, including suspension and termination, do not preclude Grantee or Sub - grantee from being subject to "Debarment and Suspension" under Executive Order 12549 (see UGMS Part III, Subpart C, Sec. 35) and state law. F. D. -88- Av 9nnn T.. -,.. c..,_. X. CONTACTS AT TSLAC Questions or concems about programmatic issues budget and or program revisions and performance reports should be directed to this grant's Program Manager: Loan Star Libraries Grant Coordinator Phone: 512- 463 -5475 Fax: 512 -463 -8800 E -mail: wclark(a),tsl.state.tx.us Questions or concems about regulatory or financial issues should be directed to: Manager, Accounting and Grants Department Phone: 512-463-6626 Fax: 512 -475 -0185 E -mail: mmartini ltsl.state.tx.us Questions or documentation relating to required Requests for Funds, Financial Status Reports, and Equipment/Property Acquired Report should be directed to: Grants Accountant Phone: 512 -463 -5472 Fax: 512 -475 -0185 E- mail: grants .accountingt'2tsl.state.tx.us Payments from Grantee to Grantor, such as those for excess advanced funds or for interest eamed on advanced funds, should be mailed with a revised FSR, an explanation of the purpose of the payment, and the grant number. This information shall be directed to Grants Accountant Accounting and Grants Department Texas State Library and Archives Commission PO Box 12516 Austin, TX 78711 -2516 XI. APPLICABLE AND GOVERNING LAW A. The laws of the State of Texas shall govern this grant. All duties of either party shall be legally performable in Texas. The applicable law for any legal disputes arising out of this contract shall be the law of (and all actions hereunder shall be brought in) the State of Texas, and the forum and venue for such disputes shall be Travis County, District Court. B. This grant is subject to availability of funds. XII. GRANT CERTIFICATIONS A. Grantor certifies that: (1) The services specified in the approved grant application and this contract are necessary and essential for activities that are properly within the statutory functions and programs of the affected organizations; (2) The services, supplies or materials contracted for are not required by Section 21 of Article 16 of the Constitution of Texas to be supplied under contract given to the lowest bidder; and, (3) The grant complies with Texas Government Code § 441.006, Title 13, Part 1, Chapter 2, Subchapter C, Division 8, Rules 2.810 — 2.815 regarding the Loan Star Grant Program and Title 13, Part 1, Chapter 2, Subchapter C, Division 1, Rules 2.110 — 2.119 regarding General Grant Guidelines, Texas Government Code § 441.135 Grants (Systems Act), P.L. 104 -208, the Library Services and Technology Act (LSTA), the State Plan for the LSTA in Texas and UGMS. B. The Grantee affirms that it has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment. gift, loan, gratuity, special discount. trip, favor or service to a public servant in connection with this contract. The Grantee further affirms that its employees or agents shall neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to any sub - agreements. C. The Grantee certifies all applicable activities related to this grant will comply with the Copyright Law of the United States (Title 17, U.S. Code). D. Per UGMS Part III, Subpart C, Sec. 35 Grantee certifies by this contract that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this program by any Federal department or agency, as required by the regulations implementing Executive Order 12549, Debarment and Suspension, 34 CFR Part 85, Section 85.510, Participant's responsibilities, 2 CFR Part 180 Subchapter C. 180.335. Where the grantee is unable to certify to any of the statements in this certification, the grantee shall attach an explanation to this contract. E. State law requires a number of assurances from applicants for federal pass - through or other state - appropriated funds. (UGMS Part III, Subpart 13, Sec. 14 — State Assurances) (1.) A sub - grantee must comply with Texas Govemment Code, Chapter 573, Vemon's 1994, by ensuring that no officer, employee, or member of the applicant's goveming body or of the applicant's contractor shall vote or confirm the employment of any person related within the second degree of affinity or the third degree of consanguinity to any member of the governing body or to any other officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the employment of a person who shall have been continuously employed for a period of two years, or such other period ry onnn r ....., Ctn.- T l:rnnt -89- 4 of 6 Contract 13 - $20,000 - $50,000 stipulated by local law, prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. A sub - grantee must insure that all information collected, assembled or maintained by the applicant relative to a project will be available to the public during normal business hours in compliance with Texas Government Code, Chapter 552, Vernon's 1994, unless otherwise expressly prohibited by law. A sub - grantee must comply with Texas Government Code, Chapter 551, Vernon's 1994, which requires all regular, special or called meeting of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution. A sub - grantee must comply with the Texas Family Code, Section 261.101 that requires reporting of all suspected cases of child abuse to local law enforcement authorities and to the Texas Department of Child Protective and Regulatory Services. Sub - grantees shall also ensure that all program personnel are properly trained and aware of this requirement. Sub - grantees will comply with all federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88 -352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§ 1681 -1683, and 1685 - 1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of handicaps and the Americans With Disabilities Act of 1990; (d) the Age Discrimination Act of 1974, as amended (42 U.S.C. §§ 6101 - 6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92 -255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91 -616), as amended, relating to the nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§ 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. 290 dd -3 and 290 ee -3), as amended, relating to confidentiality of' alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statute(s) which may apply to the application. (6.) Sub - grantees will comply, as applicable, with the provisions of the Davis -Bacon Act (40 U.S.C. § § 276a to 276a -7), the Copeland Act (40 U.S.C. § § 276c and 18 U.S.C. § § 874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. § § 327 -333), regarding labor standards for federally assisted construction sub - agreements. (7.) Sub - grantees will comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act and the Intergovernmental Personnel Act of 1970, as applicable. (8.) Sub- grantees will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. 469a -1 et seq.). (9.) Sub - grantees will comply with Public Law 103 -277, also known as the Pro - Children Act of 1994 (Act), which prohibits smoking within any portion of any indoor facility used for the provision of services for children as defined by the Act. (10.) Sub - grantees will comply with all federal tax laws and are solely responsible for filing all required state and federal tax forms. (11.) Sub - grantees will comply with all applicable requirements of all other federal and state laws, executive orders, regulations and policies governing this program. (12.) Sub - grantees must adopt anditnplement applicable provisions of the model HIV /AIDS work place guidelines of the Texas Department of Health as required by the Texas Health and Safety Code, Ann., Sec. 85.001, et seq. _90_ I: V 9nn0 r ..n., Cfer T :6r.,_: e., n_.._. SIGNATURES GRANTOR GRANTEE Texas State Library and Archives Commission City of Corpus Christi, Corpus Christi Public Libraries Edward Seidenberg, Assistant State Librarian Signature (must be an official empowered to enter into contracts) Date _Kamm) hAaa Typewritten or Printed Name Karen Drabek, Chief Fiscal Officer Title 9/30/2008 Date 7pe Deborah Littrell, Library Development Director 9/30/2008 Date —j/ve &y. (/4t/ Wendy Clark, Program Manager 9/30/2008 Date nv xmo T nan Star T ihrariec Grant Date I , yr.'Jy- \Vtt#f AtiAi kV For cfty Attorney -91 6 of 6 Contract B - $20,000 - $50,000 A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO ACCEPT A GRANT IN THE AMOUNT OF $44,206.00 AND TO EXECUTE A CONTRACT AND ALL RELATED DOCUMENTS WITH THE TEXAS STATE LIBRARY AND ARCHIVES COMMISSION FOR THE LOAN STAR LIBRARIES GRANT TO BE USED AS FOLLOWS: $41,206.00 FOR BOOKS FOR ALL LIBRARIES; $2,000.00 FOR ARCHIVAL SUPPLIES FOR LA RETAMA CENTRAL LIBRARY; AND $1,000.00 FOR FURNITURE FOR THE ANITA & W. T. NEYLAND PUBLIC LIBRARY. 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 accept a grant in the amount of $44,206.00 and to execute a contract and all related documents with the Texas State Library and Archives Commission for the Loan Star Libraries grant to be used as follows: $41,206.00 for books for all libraries; $2,000.00 for archival supplies for La Retama Central Library; and $1,000.00 for furniture for the Anita & W. T. Neyland Public Library. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Henry Garrett Mayor, City of Corpus Christi APPROVED AS TO FORM: November 3, 2008 Yj- tteAg Assistant City Attorney For City Attorney —92-- Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -93- AN ORDINANCE APPROPRIATING A GRANT IN THE AMOUNT OF $44,206.00 FROM THE TEXAS STATE LIBRARY AND ARCHIVES COMMISSION INTO THE LIBRARY GRANTS FUND NO. 1068 TO BE USED AS FOLLOWS: $41,206.00 FOR BOOKS FOR ALL LIBRARIES; $2,000.00 FOR ARCHIVAL SUPPLIES FOR LA RETAMA CENTRAL LIBRARY; AND $1,000.00 FOR FURNITURE FOR THE ANITA & W.T. NEYLAND PUBLIC LIBRARY; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That a grant in the amount of $44,206.00 from the Texas State Library and Archives Commission is appropriated into the Library Grants Fund No. 1068 for the Loan Star Libraries Grant to be used as follows: $41,206.00 for books for the all libraries; $2,000.00 for archival supplies for La Retama Central Library; and $1,000.00 for furniture for the Anita & W. T. Neyland Public Library. 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 11th day of November, 2008. ATTEST: Armando Chapa City Secretary THE CITY OF CORPUS CHRISTI Henry Garrett Mayor APPROVED TO FORM: November 3. 2008 Yv ="e As' stant City Attorney For City Attorney -94- Corpus Christi, Texas day of , 2008 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members Henry Garrett Mayor The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -95- 11 AGENDA MEMORANDUM Date: November 11, 2008 SUBJECT: Gift Agreement and appropriation of grant funds for Library AGENDA ITEM: a. Resolution authorizing the City Manager or designee to execute a Gift Agreement with the Friends of Corpus Christi Public Libraries, in the amount of $5,000.00 for the purchase of technology for the Dr. Clotilde P. Garcia Public Library. b. Ordinance appropriating a $5,000.00 gift from the Friends of Corpus Christi Public Libraries into the General Fund No. 1020, Organization No. 12850, Account No. 520100, for the purchase of technology for the Dr. Clotilde P. Garcia Public Library; changing FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 to increase revenues and appropriations by $5,000.00 each; and declaring an emergency. ISSUE: H.E.B. has donated funds through the Friends of Corpus Christi Public Libraries for the purchase of technology for the Garcia Public Library. RECOMMENDED COUNCIL ACTION: Staff recommends approval of Gift Agreement and appropriation of funds. Herb Canales Director of Libraries —99— GIFT AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND THE FRIENDS OF CORPUS CHRISTI PUBLIC LIBRARIES TECHNOLOGY FOR DR. CLOTILDE P. GARCIA PUBLIC LIBRARY This agreement ( "Agreement ") is made by and between the City of Corpus Christi ( "City "), a home rule municipal corporation organized under the laws of the State of Texas, and the Friends of Corpus Christi Public Libraries ( "Friends "), a 501 (c) (3) organization which solely exists to benefit the City's public libraries. For and in consideration of the covenants, undertakings, and consideration stated in this Agreement, the parties mutually agree as follows: (1) The City accepts a gift ( "Gift ") from the Friends in the amount of $5,000.00, which will be used solely and exclusively for technology for the Dr. Clotilde P. Garcia Public Library. (2) Any portion of the Gift not disbursed by the City by July 31, 2009 will be reimbursed to the Friends. (3) This Agreement cannot be assigned, modified, or amended unless both parties mutually consent to the assignment, modification, or amendment. Additionally, any assignment, modification, or amendment must be made in writing and executed by representatives of each party. (4) This Agreement will be interpreted in accordance with the laws of the State of Texas. —100— Executed in duplicate, each of which shall be considered an original, on this the day of , 2008. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Angel R. Escobar, P.E. Interim City Manager Approved as to form: (_ 2 t, .f GY (/ , 2008. au Of 2L' g-. e A x A istant City Attorney for the City Attorney CORPUS CHRISTI PUBLIC LIBRARY FOUNDATION, INC. / et400,41" Michael A. Howell, Treasurer 'Date —1 01 — A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A GIFT AGREEMENT WITH THE FRIENDS OF CORPUS CHRISTI PUBLIC LIBRARIES, IN THE AMOUNT OF $5,000.00, FOR THE PURCHASE OF TECHNOLOGY FOR DR. CLOTILDE P. GARCIA PUBLIC LIBRARY. 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 a Gift Agreement with the Friends of Corpus Christi Public Libraries, in the amount of $5,000.00 for the purchase of technology for the Dr. Clotilde P. Garcia Public Library. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor, City of Corpus Christi APPROVED AS TO FORM: November 3, 2008. r A'sistant City Attorney For City Attorney -102- Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -103- AN ORDINANCE APPROPRIATING A $5,000.00 GIFT FROM THE FRIENDS OF CORPUS CHRISTI PUBLIC LIBRARIES INTO THE GENERAL FUND NO. 1020, ORGANIZATION NO. 12850, ACCOUNT NO. 520100, FOR THE PURCHASE OF TECHNOLOGY FOR THE DR. CLOTIDE P. GARCIA PUBLIC LIBRARY; CHANGING FY 2008 -2009 OPERATING BUDGET ADOPTED BY ORDINANCE NO. 027776 TO INCREASE REVENUES AND APPROPRIATIONS BY $5,000.00 EACH; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That a $5,000.00 gift from the Friends of Corpus Christi Public Libraries is appropriated into the General Fund No. 1020, Organization No. 12850, Account No. 520100, for the purchase of technology for the Dr. Clotilde P. Garcia Public Library. SECTION 2. That the FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 is changed to increase revenues and appropriations by $5,000.00 each. 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 this the 11th day of November, 2008. ATTEST: Armando Chapa City Secretary THE CITY OF CORPUS CHRISTI Henry Garrett Mayor APPROVED AS TO FORM: November 3, 2008 ALAI.�.9 14 tteAguirr� A istan ity orney for City Attorney —104— Corpus Christi, Texas day of ,2008 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members Henry Garrett Mayor The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -105- 12 AGENDA MEMORANDUM Date: November 11, 2008 SUBJECT: APPROPRIATION OF FUNDS FOR NEYLAND PUBLIC LIBRARY AGENDA ITEMS: Ordinance appropriating $4,816.28 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Anita & W.T. Neyland Public Library from the following sources: $3,046.44 from unappropriated interest earnings from the Library CIP Fund No. 3210 and $1,769.84 from royalties from oil, gas and mineral interests bequeathed to the City library from the Estate of William T. Neyland; changing FY 2007 -2008 Capital Budget adopted by Ordinance No. 027456 to increase appropriations by $4,816.28; and declaring an emergency. ISSUE: Additional funds are available for the Neyland Public Library project from unappropriated interest earnings and mineral interest earnings. With this appropriation over $1,140,000 is available for the project from private funding sources. REQUIRED COUNCIL ACTION: Council authorization required for appropriation of funds. PRIOR COUNCIL ACTION: Resolution No. 026056 (December 14, 2004) accepting a cash distribution from the William T. Neyland Estate Ordinance No. 026128 (January 25, 2005) appropriating up to $600,000 from William T. Neyland Estate into the Library CIP Fund No. 3210 for improvements to the Parkdale Branch Library Resolution No. 026129 (January 25, 2005) authorizing the renaming of the Parkdale Branch Library to the "William T. Neyland Public Library" upon completion of improvements to the facility. Resolution No. 026752 (April 25, 2006) amending Resolution No. 026056 to authorize City Manager or designee to determine whether to retain or sell the library's beneficial mineral interest as bequeathed to library by the Last Will and Testament of William T Neyland. Resolution No. 026833 (June 27, 2006) authorizing the City Manager or his designee to execute a Gift Agreement with the Friends of Corpus Christi Public Libraries which provides the City with $55,000 for improvements to the Parkdale Branch Library. Ordinance No. 026834 (June 27, 2006) appropriating $257,353.70 into the Library CIP Fund No. 3210 for improvements to the Parkdale Branch Library from the following sources: $187,458.57 from the William T. Neyland Estate; $55,000 from the Friends of Corpus Christi Public Libraries; and $14,894.13 from unappropriated interest eamings from the Library CIP Fund No. 3210 for Parkdale library improvements —109— Resolution No. 026941 (August 29, 2006) authorizing the City Manager or his designee to execute a Gift Agreement with the Corpus Christi Public Library Foundation, Inc. which provides $4,492.87 to the City for improvements to the Parkdale Branch Library. Ordinance No. 026942 (August 29, 2006) appropriating $4,492.87 from the Corpus Christi Public Library Foundation, Inc. into the Library CIP Fund No. 3210 for improvements to the Parkdale Branch Library; amending the FY 2005 -2006 Capital adopted by Ordinance No. 026188 to increase appropriations by $4,492.87. Resolution No. 027106 (January 16, 2007) authorizing the City Manager or his designee to execute a Gift Agreement with the Friends of Corpus Christi Public Libraries which provides $101,000.00 to the City for improvements to the Parkdale Branch Library. Ordinance No. 027107 (January 16, 2007) appropriating $131,750.32 into the Library CIP Fund No. 3210 for improvements to the Parkdale Branch Library, Janet F. Harte Public Library and the Bell Children's Library at the Central Library from the following sources: $101,000 from the Friends of Corpus Christi Public Libraries for the Parkdale Branch Library; $25,828.75 from unappropriated interest earnings from the Library CIP Fund No. 3210 for the Parkdale Branch Library; $3,119.47 from unappropriated interest earnings from the Library CIP Fund No. 3210 for the Janet F. Harte Public Library; $1,802.10 from unappropriated interest earnings from the Library CIP Fund No. 3210 for the Bell Children's Library at the Central Library; amending FY 2006 -2007 Capital Budget adopted by Ordinance No. 026997 to increase appropriations by $131,750.32; and declaring an emergency. Ordinance No. 027132 (January 30, 2007) appropriating $8,000 into the Library CIP Fund No. 3210 for improvements to the Parkdale Branch Library from the William. T. Neyland Estate; amending FY 2006 -2007 Capital Budget adopted by Ordinance No. 026997 to increase appropriations by $8,000; and declaring an emergency. Resolution No. 027177 (March 20, 2007) authorizing the City Manager or his designee to execute all documents and take all action necessary to administer the property previously held by the Anita Neyland Trust, which is now being turned over to the City, including but not limited to signing oil and gas division orders and accepting monies derived from property; and requiring that all monies derived from this property shall be deposited into a library fund and used for library purposes. Ordinance No. 027237 (April 24, 2007) appropriating $18,223.38 into the Library CIP Fund No. 3210 for improvements to the Parkdale Branch Library from the following sources: $6,441.68 from Anita T. Neyland Trust; $11,781.70 from unappropriated interest earnings from the Library CIP Fund No. 3210; amending FY 2006 -2007 Capital Budget adopted by Ordinance No. 026997 to increase appropriations by $18,223.38; and declaring an emergency. Ordinance No. 027282 (May 22, 2007) appropriating $5,902.61 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Parkdale Branch Library from the following sources: $1,947.19 from mineral interest from the William T. Neyland Estate and $3,955.42 from unappropriated interest earnings from the Library CIP Fund No. 3210; amending FY 2006 -2007 Capital Budget adopted by Ordinance No. 026997 to increase appropriations by $5,902.61; and declaring an emergency. Ordinance No. 027368 (August 21, 2007) appropriating $13,975.69 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Parkdale Branch Library from the following sources: $1,739.68 from mineral interest from the William T. Neyland Estate and $12,236.01 from unappropriated interest earnings from the Library CIP Fund No. 3210; changing FY 2006 -2007 Capital Budget adopted by Ordinance No. 026997 to increase appropriations by $13,975.69; and declaring an emergency. —11�— Resolution No. 027435 (October 9, 2007) authorizing the City Manager or designee to execute a Gift Agreement with the Friends of Corpus Christi Public Libraries in the amount of $25,000.00 for improvements to the Parkdale Branch Library. Ordinance No. 027436 (October 9, 2007) appropriating $29,138.86 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Parkdale Branch Library from the following sources: $25,000.00 from the Friends of Corpus Christi Public Libraries; and $4,138.86 from unappropriated interest earnings from the Library CIP Fund No. 3210; changing FY 2006 -2007 Capital Budget adopted by Ordinance No. 026997 to increase appropriations by $ 29,138.86; and declaring an emergency. Resolution No. 027442 (October 9, 2007) authorizing the renaming of the Parkdale Branch Public Library to the "Anita & W. T. Neyland Public Library" as recommended by the Library Board upon completion of improvements to the facility and repealing Resolution No. 026129 which previously authorized the remaining of the Parkdale Branch Library to the "William T. Neyland Public Library." Motion No. 2007 -258 (October 9, 2007) authorizing the City Manger or his designee to execute a construction contract in the amount of $790,547 with Van Fleet Construction, of Kingsville, Texas for the Parkdale Library Renovation Project for the Base Bid and Additive Alternate No. 1 . Motion No. 2007 -255 (October 9, 2007) authorizing the City Manager or his designee to execute a contract with Ricardo Ruiz (Artist) for the design, production, installation, and purchase of a 6 -foot high by 12 -foot wide mural, in the amount of $8,550 as part of the Percent for Art Program associated with the Parkdale Branch Library renovation project. Ordinance No. 027563 (January 29, 2008) appropriating $19,726.24 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Parkdale Branch Library from the following sources: $15,155.93 from unappropriated interest earnings from the Library CIP Fund No. 3210 and $4,570.31 from royalties from oil, gas and mineral interests bequeathed to the City from the estate of William T. Neyland; changing FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 to increase appropriations by $19,726.24; and declaring an emergency. Resolution No. 027573 (February 12, 2008) authorizing the City Manager or his designee to execute a Gift Agreement with the Friends of Corpus Christi Public Libraries in the amount of $42,000 for construction and installation of a new book -lift shaft, book - list and machine room at the Parkdale Branch Library. Ordinance No. 027574 (February 12, 2008) appropriating $42,000 into the Library Capital Improvement Program (CIP) Fund No. 3210, Project No. 120095 for construction and installation of new book -lift shaft, book -lift and machine room at the Parkdale Branch Library from Friends of Corpus Christi Public Libraries; changing FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 to increase appropriations by $42,000; and declaring an emergency. Ordinance No. 027717 (June 10, 2008) appropriating $ 16,997.29 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Parkdale Branch Library from the following sources: $9,946.69 from unappropriated interest earnings from the Library CIP Fund No. 3210 and $ 7,050.60 from royalties from oil, gas, and mineral interests bequeathed to the City from the estate of William T. Neyland Estate; changing FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 to increase appropriations by $ 16,997.29; and declaring an emergency. Ordinance No. 027871 (August 26, 2008) appropriating $ 3,848.21 into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Parkdale Branch Library from the —111— following sources: $1,573.99 from unappropriated interest earnings from the Library CIP Fund No. 3210 and $ 2,274.22 from royalties from oil, gas, and mineral interests bequeathed to the City from the estate of William T. Neyland; changing FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 to increase appropriations by $ 3,848.21; and declaring an emergency. RECOMMENDATION: Staff recommends approval. 4 —112— Herb Canales Director of Libraries AN ORDINANCE APPROPRIATING $4,816.28 INTO THE LIBRARY CIP FUND NO. 3210, PROJECT NO. 120095, FOR IMPROVEMENTS TO THE ANITA & W. T. NEYLAND PUBLIC LIBRARY FROM THE FOLLOWING SOURCES: $3,046.44 FROM UNAPPROPRIATED INTEREST EARNINGS FROM THE LIBRARY CIP FUND NO. 3210 AND $1,769.84 FROM ROYALTIES FROM OIL, GAS AND MINERAL INTERESTS BEQUEATHED TO THE CITY LIBRARY FROM THE ESTATE OF WILLIAM T. NEYLAND; CHANGING FY 2007 -2008 CAPITAL BUDGET ADOPTED BY ORDINANCE NO. 027546 TO INCREASE APPROPRIATIONS BY $4,816.28; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $4,816.28 is appropriated into the Library CIP Fund No. 3210, Project No. 120095, for improvements to the Anita & W. T. Neyland Public Library from the following sources: $3,046.44 from unappropriated interest earnings from the Library CIP Fund No. 3210 and $1,769.84 from royalties from oil, gas and mineral interests bequeathed to the City library from the Estate of William T. Neyland. SECTION 2. That the FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 is changed to increase appropriations by $4,816.28. 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 this the 11`h day of November, 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED AS TO FORM: November 3, 2008 Y2tteA Assistant City Attorney For City Attorney —113— Corpus Christi, Texas day of , 2008 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I /we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members Henry Garrett Mayor The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -114- 13 AGENDA MEMORANDUM City Council Action Date: November 11, 2008 SUBJECT: Lindale Recreation Center Renovations (3376) BOND ISSUE 2004 AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute a Job Order Contract with Alpha Building Corporation of Corpus Christi, Texas, in the amount of $153,004.18 for Lindale Recreation Center Renovations BOND ISSUE 2004. ISSUE: This project is necessary to address the necessary repairs to the recreation center and will include parking lot improvements, improved playground area, shade structure, roof repair and continued effort to make all facilities Americans with Disabilities Act (ADA) accessible. The work is proposed under a Job Order Contract with Alpha Building Corporation. The proposed project was approved November 2, 2004 in the Bond Issue 2004 Package, under Proposition No. 4 Park and Recreation Improvements. The project is now ready to begin construction; and requires City Council approval. FUNDING: Funds for this project are available from the CIP Parks and Recreation Fund. RECOMMENDATION: Staff recommends approval of the otion as presented. I VO 3 ADS Kevin R. Stowers, Sally Gavlik, Director of Parks and Recreation Interim Director of Engineering Services Additional Support Material: Exhibit "A" Background Information Exhibit "B" Prior Actions Exhibit "C" Scope of Work and Costs Exhibit "D" Location Map H:\USERS2VIOME\VELMAP ■GEN \PARKS & REC ■3376 LINDALE REC CENTE@WtEII7 .MEMO BACKGROUND INFORMATION SUBJECT: Lindale Recreation Center Renovations (Project No. 3376) BOND ISSUE 2004 PROJECT DESCRIPTION: The project will provide improvements to the Lindale Recreation Center including modification of existing roofs, and accessible parking and access route to buildings, and other minor modifications. The work includes demolition, concrete, masonry, metals, thermal and moisture protection, openings, finishes, specialties, equipment, plumbing, heating, ventilating, and air conditioning (HVAC), electrical, earthwork, and exterior improvements. CONSTRUCTION SCHEDULE: The project will be completed 135 days from notice to proceed. METHOD OF CONSTRUCTION: Job Order Contracting (JOC) is an innovative contracting technique created for facilities maintenance and construction- related services to assist with obtaining greater contractor performance in relation to smaller projects on a cost - effective and timely basis. The JOC Program utilizes an "on -call" general construction contractor on an as- needed basis for an Indefinite Quantity Contract to perform minor construction, repair, rehabilitation or alteration of facilities. Job Order Contracting streamlines the construction procurement process by establishing an overriding indefinite delivery and indefinite quantity agreement with purchase or delivery orders based on specific projects as needed. This process is extremely flexible, allowing scope and cost to be accurately detailed BEFORE award. The following are important benefits of using this contract method: ➢ Allows a better defined scope with cost for the customer. ➢ Construction contract award can be accomplished in less than one month, significantly shortening the procurement time. Each delivery order is a stand -alone contract. Future awards will be based specifically on the contractors performance and the needs of the City of Corpus Christi. Change Orders are minimized The approved contractor will specifically conduct detailed site visits and discussions with City Staff to review the requirements, work conditions, and facility condition prior to submitting a proposal. This will significantly reduce and /or eliminate unforeseen conditions and excessive cost growth. On January 3, 2007, the City of Corpus Christi issued an RFP (2007 -01) for JOC contractors. This enabled the City of Corpus Christi to more effectively target local contractors, including minority /minority business enterprises and HUB contractors. It also avoided the pass- through fees associated with the Texas Cooperative Partnering Network TCPN. EXHIBIT "A" Page 1 of 2 H: \USERS2\HGMEWELMAP \GEN \PARKS & REC\3376 LINDALE REC CENTERNESDA BACKGROUND Six contractors submitted proposals; however, one proposal was received late and was returned unopened. After evaluation by staff and the selection committee, it was recommended to pursue JOC contracts with two contractors: 1. Alpha Building Corporation, 6300 Ocean Drive, Corpus Christi, Texas, 78412 2. Nuway International Inc., 2621 Holly Road, Corpus Christi, Texas, 78415 The first project to utilize the services of Alpha Building Corporation under the JOC format was the project to renovate the Joe Garza Recreation Center, a Bond Issue 2004 and CDBG- funded project which was approved by the City Council on April 10, 2007. As of October 2008, a combined total of 87 delivery orders (contracts) have been issued to Alpha Building Corporation and Nuway International totaling approximately $3,350,000. This request for proposals was competed for a three -year period to be renewed each year based on the successful performance of the contractors. To date the process has proven quite successful and is entering the second year at its anniversary in April 2008. A similar contracting technique was approved by the City Council in September 2005 under the TCPN. Fire Station No. 13 and Kiwanis Softball Field Improvements (both Bond 2004 projects) were successfully completed under the TCPN JOC. The TCPN utilized Centennial Contractor Enterprise, Inc. of San Antonio. EXHIBIT "A" I Page 2 of 2 H: \USERS2 \HOMEWELMAP \GEN\PARKS & REC \3376 LINDALE REC CENTERWGENOABACKGROUND PROR PROJECT ACTIONS SUBJECT: Lindale Recreation Center Renovations (Project No. 3376) BOND ISSUE 2004 PRIOR COUNCIL ACTION: 1. November 2, 2004 — Resolution expressing official intent to reimburse costs of the 2004 Bond Capital Improvement Projects (Resolution No. 026015). 2. November 9, 2004 — Ordinance canvassing returns and declaring the results of the Special Election held on November 2, 2004, in the City of Corpus Christi for the adoption of five bond propositions; adoption of a permanent ad valorem tax freeze on resident homesteads of persons 65 years of age or older or disabled persons and eligible spouses; and adoption of seven amendment to the Charter of the City of Corpus Christi (Ordinance No. 026022). 3. December 13, 2005 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 1 to the Contract For Professional Services with Roots /Foster Associates Inc. of Corpus Christi, Texas, in the amount of $150,385 for a total re- stated fee of $158,710 for the Renovation of Senior and Recreation Facilities City -Wide. (Bond Issue 2004) (Motion No. M2005 -410) • Renovations and Maintenance Improvements to Facilities: o Lindale Recreation Center o Joe Garza Recreation Center o Oak Park Recreation Center o Oso Recreation Center o T.C. Ayers Recreation Center o Ethel Eyerly Community Center o Northwest Senior Center • Parking Lot Improvements: o Oveal Williams Senior Center o Lindale Senior Center o Greenwood Senior Center o Zavala Senior Center o Heritage Park Facility • ADA Compliance, Maintenance improvements and Enhancements: o Collier Pool o Greenwood Pool o H.E.B. Pool o Joe Garza Pool o Oso Pool o Parker Pool o Violet Pool o T.C. Ayers Pool o West Guth Pool —120— EXHIBIT "B" Page 1 of 2 PRIOR ADMINISTRATIVE ACTION: 1. August 26, 2004 - Distribution of Request for Qualifications (RFQ) No. 2004 -03 Bond Issue 2004 Projects to 175 engineering firms (70 local and 105 non - local). 2. March 25, 2005 — Addendum No. 1 to the Request for Qualifications (RFQ) No. 2004 -03 Bond Issue 2004 Projects to 175 engineering firms (70 local and 105 non - local). 3. April 13, 2005 - Addendum No. 2 to the Request for Qualifications (RFQ) No. 2004- 03 Bond Issue 2004 Projects to 175 engineering firms (70 local and 105 non - local). 4. August 30, 2005 — Executed Small NE Agreement with Roots Foster Associates in the amount of $8,325 for the Senior and Recreation Facilities Renovation Bond Issue 2004 Projects. 5. July 28, 2006 - Executed Amendment No. 2 to the Contract For Professional Services with Roots Foster Associates in the amount of $0 for the Senior and Recreation Facilities Renovation Bond Issue 2004 Projects. —121— H: \USERS2\HOME \VELMAP\GEN \PARKS & REC ■3376 LINDALE REC CENTER \PRIOR ACTIONS IEXHIBIT "B" Page 2 of 2 SCOPE OF WORK AND COSTS SUBJECT: Lindale Recreation Center Renovations (Project No. 3376) BOND ISSUE 2004 Lindale Recreation Center Renovations The project will provide improvements to the Lindale Recreation Center including modification of existing roofs, and accessible parking and access route to buildings, and other minor modifications. The work includes demolition, concrete, masonry, metals, thermal and moisture protection, openings, finishes, specialties, equipment, plumbing, heating, ventilating, and air conditioning (HVAC), electrical, earthwork, and exterior improvements. LINDALE RECREATION CENTER RENOVATIONS (Alpha Building Corporation) General Requirements $16,281.23 Concrete 18,154.37 Masonry 457.50 Metals 4,723.04 Wood, Plastics, and Composites 4,578.73 Thermal and Moisture Protection 3,763.07 Openings 5,525.44 Finishes 34,676.17 Special Construction 74,391.60 Plumbing 2,691.64 Heating, Ventilating, and Air Conditioning (HVAC) 100.63 Electrical 14,515.65 Electronic Safety and Security 531.66 Earthwork 27,537.78 Corpus Christi JOC Coefficient ( -11 %) 43,155.02 Permit (3 %) 7,277.48 Bond (2.5 %) 5,198.20 Grand Total $153,004.18 H :NSERS2WOMEWELMAP\GENIPARKS8 REC \3376 LINDALE REC CENTER t9P2OF WORK AND COSTS EXHIBIT "C" Page 1 of 1 \Mproject \councilexhibits \exh3376. dwg C s.:P1iS _3- (P.S7T PROJECT No. 3376 LOCATION MAP NOT TO SCALE EXHIBIT "D" LINDA LE RECREATION CENTER RENOVATIONS BOND ISSUE 2004 -123- CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE:08 /07/2008 A 14 AGENDA MEMORANDUM DATE: November 11, 2008 SUBJECT: Corpus Christi International Airport Drainage Phase 6 — Pipeline Adjustments (Project 10020) AGENDA ITEM: A. Motion authorizing the City Manager, or his designee, to execute an agreement for adjustment of an eight -inch (8 ") pipeline in a not to exceed amount of $64,437.50 with South Shore Pipeline, L.P., of Houston, Texas for the Corpus Christi International Airport Drainage Phase VI Project. B. Motion authorizing the City Manager, or his designee, to execute an agreement for adjustment of an six -inch (6 ") pipeline in a not to exceed amount of $108,000.00 with Crosstex Natural Gas Transmission, Ltd., of Dallas, Texas for the Corpus Christi International Airport Drainage Phase VI Project. C. Motion authorizing the City Manager, or his designee, to execute an agreement for adjustment of an six -inch (6 ") pipeline in a not to exceed amount of $163,496.00 with Copano Pipeline, L.L.C., of Houston, Texas for the Corpus Christi International Airport Drainage Phase VI Project. ISSUE: The pipeline company requested to deal directly with the City of Corpus Christi rather than the City's contractor. RECOMMENDATION: Approval of the motion as presented. Fred Director of Aviation Attachments: a. Additional Information b. Reimbursement Letters /Costs c. Site Map Kevin R. Stowers Interim Director of Engineering Service HAHOME \KEVINS \GEMAI R_ restored\ 20041mprovements\ TaxiwayRehab &DrainageVRPipelines WwdPipelinesMemo.doc —127— ADDITIONAL INFORMATION BACKGROUND: A total of five pipelines owned by four separate companies have been identified that must be adjusted to accommodate the storm water drainage channel being constructed as part of Corpus Christi International Drainage Phase VI project. Each of the pipeline companies were supplied with copies of plans, and asked to provide a preliminary pipeline adjustment cost to lower their pipeline below the drainage channel. Their preliminary cost plus a mark up for the contractor to coordinate with the pipeline companies was included as an allowance in the bid documents. The pipeline companies requested to deal directly with the City of Corpus Christi rather than the contractor. The cost of the allowance is being eliminated from the contract price with Haas Anderson as a deductive change order in the amount of $700,000.00. The pipeline companies identified are: • Copano Pipeline — 1 ea. 6 -in, pipeline; • Crosstex Natural Gas Transmission Ltd. — 1 ea. 6 -in. pipeline; • Nustar Logistics, Inc. — 2 ea. 6 -in. pipelines; and • South Shore Pipeline — 1 ea. 8 -in. pipeline. Prices have been submitted by Copano Pipeline, Crosstex Energy, and South Shore Pipeline. Nustar is preparing a relocation agreement, but has not submitted a final draft at this time. PRIOR COUNCIL ACTION: July 10, 2007 — Motion authorizing the City Manager, or his designee, to execute Amendment No. 11 to the engineering services contract with Pierce, Goodwin, Alexander and Linville (PGAL), Inc. of Dallas, Texas in an amount not to exceed $327,000 for the Corpus Christi International Airport Airfield Drainage Phase VI and Taxiway Rehabilitation, Signage and Lighting Improvement Projects. (M2007 -176). May 13, 2008 — Resolution to Authorize the City Manager or Designee to Execute a Multiple Use Agreement with Texas Department of Transportation (TXDOT) for a Drainage Culvert on FM 763 (Joe Miruer Road) Associated with Corpus Christi International Airport (CCIA) Taxiway Rehabilitation and Drainage Phase VI Projects. (Resolution No. 027691) July 8, 2008 — a. Ordinance appropriating $2,234,346.00 from the Federal Aviation Administration Grant No. 3-48- 0051 -40 -2008 in the No. 3020 Airport Capital Improvement Fund to Rehabilitate Taxiway Systems Phase II; Modify Aircraft Rescue & Firefighting Building, Phase 1; Construct Perimeter Service Road, Phase I; and Construct Equipment Maintenance Building, Phase I at Corpus Christi International Airport; amending Fy2008 Capital Budget Adopted by Ordinance No. 027546 to increase appropriations by $2,234,346.00; and declaring an emergency. (Ord. No. 027747) Exhibit "A" Page 1 of 2 H AHOM EVE V I N S \G EM\AI R_restored\2o041 m proveme nls \Taxilanh ab& D rai n ageV l\Pipelines\AwdPi pelines Bkg ExhA.doc b. Ordinance appropriating $2,500,000.00 from the Federal Aviation Administration Grant No. 3 -48- 0051 -41 -2008 in the No. 3020 Airport Capital Improvement Fund to Improve Airport Drainage, Area VI, Phase II at Corpus Christi International Airport; amending Fy2008 Capital Budget Adopted by Ordinance No. 027546 to increase appropriations by $2,500,000.00; and declaring an emergency. (Ord. No. 027748) c. Ordinance appropriating $2,800,000.00 from the Federal Aviation Administration Grant No. 3-48- 0051 -42 -2008 in the No. 3020 Airport Capital Improvement Fund to Rehabilitate Taxiway Systems Phase II at Corpus Christi International Airport; amending Fy2008 Capital Budget Adopted by Ordinance No. 027546 to increase appropriations by $2,800,000.00; and declaring an emergency. (Ord. No. 027749) d. Ordinance transferring $600,100.00 from Airport Capital Reserve Fund 4611 and appropriating $600,000.00 into the Airport CIP Fund — Capital Reserve Fund 3020A to Rehabilitate Taxiway Systems Phase II; Modify Aircraft Rescue & Firefighting Building, Phase 1; Construct Perimeter Service Road, Phase I; and Construct Equipment Maintenance Building, Phase I at Corpus Christi International Airport; amending Fy2008 Capital Budget Adopted by Ordinance No. 027546 to increase appropriations by $600,000.00; and declaring an emergency. (Ord. No. 027750) October 21, 2008 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 16 to the engineering services contract with Pierce, Goodwin, Alexander and Linville (PGAL), Inc. of Dallas, Texas in an amount not to exceed $259,744.80 for a restated not to exceed total fee of $2,888,813.80 for the Corpus Christi International Airport Airfield Drainage Phase VI and Taxiway Rehabilitation, Signage and Lighting Improvement Projects for construction management and inspection (M2008 -273). FUTURE COUNCIL ACTION: Authorization for the City Manager, or his designee, to execute a relocation agreement with Nustar Logistics. Award of any necessary change orders. FUNDING: Funds are available from FAA Grants and Aviation Capital Reserve CIP funds. The project budget is attached. Exhibit "A" Page 2 of 2 HAHOME \KEVINS \GEN W R_ restored\ 20041mprovements\ Taxiwanehab &DrainageV11Pipelines WwdPipelinesBkgExhkdoc 5847 San Felipe Suite 1910 Houston, Texas 75057 Mr. Kevin Stowers CITY OF CORPUS CHRISTI Dept of Engineering Services P.O. Box 9277 Corpus Christi, TX 78469 -9277 SUBJECT: Pipeline Adjustment — Taxiway Rehabilitation — Airfield By evidence of' this Letter Agreement, South Shore Pipeline, LP as Corpus Christi as "City" do herby mutually agree to the terms and relative to the SUBJECT: Drainage Phase VI "Pipeline" and the City of conditions set forth below Whereas Pipeline owns and operates an 8%" OD natural gas pipeline located within an existing recorded easement across certain lands on which City wishes to excavate the surface of those lands held in common, for the purpose of installing a drainage ditch. Said installation will create a conflict with Pipeline's natural gas pipeline location at its current depth below existing surface of the ground. City has requested Pipeline to increase the depth of its pipeline at City's cost. Such request will require Pipeline to adjust its depth by approximately eight feet (8') for a distance of +1- one hundred and fifty feet (150'). Actual depth and distance shall be determined by Pipeline following adjustment by providing "as built" measurement. Pipeline will engage a third party contractor to perform the work necessary to complete the requisite adjustment to its pipeline. City has requested an estimate of project costs (Exhibit A) and agrees to reimburse Pipeline for Pipeline's actual costs of the project. Actual costs, with backup, will be provided City upon contractor billing Pipeline following completion of the project. If the foregoing sets forth the agreement between City and Pipeline pursuant to earlier discussions between the parties, please indicate acceptance of the terms and conditions by signing in the space provided below. AGREED to and ACCEPTED this day of , 2008. CITY OF CORPUS CHRISTI BY: NAME: TITLE: SOUT BY:' NAME: TITLE: E PIPELINE. LP ( latex, iGL EXHIBIT Estimated costs of adjustment to lower — 150' of 851:" OD pipeline: Excavate and remove existing pipe Lower pipeline ditch to required depth Weld and hydrotest new piping Lower piping and reconnect to existing pipeline Tape field joints Backfill and re -grade Estimated cost: 561.400.00 Gas loss estimated cost: 5 3,037.50 Estimated Total: 564,437.50* *This amount shall be used for estimation purposes only and not for determining actual costs incurred in completing the project. —131— Exhibit 13-1 Page 2 of 2 ORIGINAL September 29, 2008 Via Overni¢ht Delivery City of Corpus Christi — Dept of Engineering 1201 Leopard St Corpus Christi, TX 78401 361 - 880 -3500 Attention: Kevin Stowers RE: Airport Drainage Expansion - Pipeline Relocation Letter Agreement Dear Mr. Stowers: The City of Corpus Christi has requested Crosstex CCNG Transmission Company, Ltd. ( "Crosstex ") to relocate 260 feet of its 6 -inch natural gas pipeline, referred to as 6" Airport Lateral, located in Corpus Christi, Texas, as depicted on the attached map (the "Pipeline "). The Pipeline relocation project is required to allow the City of Corpus Christi to expand the drainage associate with the Corpus Christi Airport expansion. The following are terms and conditions by which the relocation of the Pipeline will take place. 1. Crosstex shall furnish, or shall cause to be furnished, all material, labor and inspection to relocate the Pipeline to a depth of at least five (5) ft below the proposed grade of the Airport Drainage Improvements. 2. The City of Corpus Christi agrees to indemnify and hold harmless Crosstex from any and all claims, including, but not limited to, third party claims, for property damage or bodily injury arising out of performance by Crosstex of its obligations under Section 1 hereof, except for any claims for property damage, bodily injury or death caused by the gross negligence or willful misconduct of Crosstex or any of its employees or contractors. 3. The City of Corpus Christi shall furnish all required temporary working easements and ingress and egress to the project location. —132— Exhibit B -2 i Pace 1 of 3 OR /G/NAt 4. The City of Corpus Christi shall reimburse Crosstex for the actual costs incurred by Crosstex for the relocation of the Pipeline, including, but not limited to, costs for material, labor cost, inspection cost, payroll and allocated payroll expense (including Crosstex's standard construction overhead charges associated with installation). Following completion of the Pipeline relocation, Crosstex will provide the City of Corpus Christi an invoice, along with reasonable supporting documentation, of the final costs and expenses for the project, and the City of Corpus Christi shall remit payment in full of all such amounts to Crosstex within thirty (30) days following receipt of' such invoice and documentation in an amount not to exceed $108,000 without the approval of the City of Corpus Christi. If you find the terms of the above satisfactory, please so signify by having the appropriate representative sign below and return this letter to our office. Call Steve Lee at (713) 739 -3227 or Leonard Stroman at 361 - 299 -4310 if you have any questions or require any additional information. Respectfully Submitted, g) P/44 CROSSTEX CORPUS CHRISTI NATURAL GAS TRANSMISSION, LTD. ACCEPTED AND AGREED TO THIS DAY OF , 2008 BY: AUTHORIZED REPRESENTATIVE OF THE CITY OF CORPUS CHRISTI -133- Exhibit B -2 Paae 2 of 3 CRO5STEX ,>..•..,.t■••■■ Hyperion Budget IOS CROSSTEX ENERGY SERVICES, LTD. AFE COVER SHEET CAPITAL AFE # PC BUS MTr: D JIa lCoop (PC 100) Opening Unit 6501 Project Type: Gru+ Ma'mtenatce / (ode one) Midstream (PC101) X Sane: Terre Budgeted: yes( No dude one) Tvado9 (PC 102) CoumyIP.dah: Hutton Maim Cade: Denton Co. (PC 300) Suppl.mental: Yes cT No (vide one) Praj60 TBM: 6" akvon Labml 1prerlm Project Oeacdptlon: p wM tit CM 01 Cads Christi's dos, emr legal Gams at 6- tiers label Clwdex aim need to loner the existing G Weal lo a dent 0410 bedow Ole [noosed pith Justl00atldn: puny Relnwramle from CM 00 Cams Canal Economies (Growth): Imsmtl Rate et Return: Wo.t to Begin: 1111/2005 Dolman teomelyaartk 5 Estimated Complelbn Dab 12/15/2005 Experw TYpe Naha of Ea.Mimra Dta ity Budrt.t Cary On-Hand BnveMosy) Total 261 RIghact-Way / Suvey 51.040 51.040 151 Pipe, VaMS 5 Fittings 514.400 514,400 146 YFanvemmlL matmmentaBG5 a Conlin! 204 TaWng and Germs 53,500 53.600 154 Tanks 166 Separators, Vends and Tovmis 136 Canpranors,Gemmb and Moe 152 Pumps 141 Electrical Equipment 149 Other Equipment If Mated W 140 Plan Purchase 153 Plant Equipment 142 EarMdwt 143 Filters 144 FNks 205 Permifihq 8 Lab Fees 131 Buildings 251 Installation • Contractor Services 252 Mseontal 541,600 541.691 253 090iwl 254 Inanimation ation 8 Comp 256 Equgmma 266 Chill ffi Sandblast &Pain 145 FnaldaSJn 257 Supervision - Third Party 314,000 514.000 GompariY Labor s Expenses 101 Engbwii a Prided Malaganeat 312,350 112.350 102 OparedM= 510,030 510.000 652 VsMdes 136 ContigurJa (10%) 59.699 59.699 T00 Income Tax Gross-up 267 290 152 953 Sub5M01 Saks Tax Slowdown gas Aid in Cpmhlwibn Lino Peck Cspkalhed unrest 3105,689 106.659 31,156 31.165 TOTAL 5107,877 5107577 Bard et Damara: >s10.600.000 Pndosi 8 CEO: Upla510,00yWp Chid Operdmg Officer Up to 53.3000.000 Executive VP. Seder VP: Up b 31,000,000 Chief Financial Officer - Signature Signature Signature Signature Date: Date: Date: Dane: Galt: Dale: Dale'. Die. Dale: to- P, of' Signature VP Enhmaelg; VP Operelans: Up to 5500,000 Dane: Signature Dhwmrtlww9er- Oceragas: Up 10 5100,0001525,000 Mike neobeny Dale: 11/192007 Sgmeve Appmals Reviewed by amounting: Dale: Aagntem- Sgnature -134- Reoi4'M 1/16n Exhibit B -2 Page 3 of 3 AGREEMENT INCIDENT TO LOWERING PIPELINE STATE OF TEXAS COUNTY OF KNOW ALL BY THESE PRESENTS: Whereas, to which reference is made for all purposes, and Whereas, plans the development of for residential and commercial use; and Whereas, ( "Copano ") owns and operates a inch natural gas pipeline (the "Pipeline ") that traverses the Property pursuant to rights (said rights collectively, including reference to the lands covered thereby, sometimes being referenced in this document as the "Easements ") granted by two Right of Way Contracts (the "Right of Way Contracts ") now owned by Copano and referenced as follows: (i) Right of Way and recorded at of the Deed Records of County, Texas; and (ii) Right of Way and recorded at of the Deed Records of County, Texas; As these Right of Way Contracts may have been amended by instruments now of record in the office of the County Clerk; and Whereas, in connection with its planned development of the Property. has requested that Copano lower the Pipeline; and Whereas, Copano has agreed to lower the Pipeline subject to certain terms and conditions as set forth in this Agreement. Now, therefore, for and in consideration of the premises, and other good and valuable consideration, including the agreements herein contained, the sufficiency of which is hereby acknowledged, and Copano (collectively, the "Parties ") agree as follows: 1. Copano will lower the Pipeline within the Easements authorized by the existing Right of Way Contracts. Assuming no delays due to weather, ground conditions that preclude the efficient lowering of the Pipeline, or other events beyond the control of Copano and its —135— Exhibit B -3 Paae 1 of 8 contractor (herein referred to as "Force Majeure delays "), and subject to paragraphs 2, 3, and 4 below, Copano will initiate the lowering of the Pipeline. 2. The costs incurred by Copano in connection with lowering the Pipeline shall be borne by , and have been agreed by the parties to be a set sum of Dollars and No Cents ($ ). Copano shall be under no obligation to begin any work related to lowering the Pipeline until and unless it shall have received, in certified funds or other form of payment satisfactory to Copano, the entire agreed upon sum. 3. Contemporaneously with the execution of this Agreement, shall make payment to Copano of the entire agreed project cost set forth in Paragraph 2 above. Failure by to make such payment will cause this Agreement to lapse and become null and void. Within 14 days after such payment is made and this Agreement and the subordinations provided for in Paragraph 4 below are recorded in the office of the Harris County Clerk, Copano shall commence the lowering work and shall diligently and continuously pursue such work to completion. Copano shall use reasonable commercial effort to complete such lowering work within 45 days after work begins, subject only to Force Majeure delays. In no event shall Copano be obligated to commence lowering the Pipeline until has notified Copano that has completed clearing of that portion of the Easements subject to the lowering of the Pipeline and any additional temporary work space area as set forth below. 4. Any liens on the Property arising from or in any way associated with the development of the Property by shall be subordinated to this Agreement. shall provide Copano with a copy of its title insurance policy reflecting all encumbrances on the Property and such other documentation as may be necessary to confirm that all liens are or will be so subordinated. Copano shall be under no obligation, even after receiving the full payment as set forth in paragraph 2 above, to begin any work related to lowering the Pipeline until and unless it shall have received, in a form satisfactory to Copano, proper and recordable subordinations to this Agreement of any liens affecting the Property. 5. , as additional consideration to Copano for this Agreement, grants and conveys to Copano a temporary working space of fifteen feet on each side of the pipeline Easements as they transverse the subject property, on any part of said Easements where such Easements have been restricted as to width by recorded agreement or operation of law. This working space shall be for Copano's use in moving equipment, machinery, pipe, and any and all other incidentals, ancillary or appurtenant, as may be necessary for Copano to complete the lowering of its pipeline. This work space shall be over, on, across and under fifteen feet on each side of any such restricted width easements and shall constitute a working area for Copano, its agents, contractors, subcontractors, and its and their employees for the work related to lowering Copano's pipeline as contemplated by this Agreement. This temporary grant shall begin on the date of execution of this Agreement and shall continue to be effective until thirty (30) days after Copano has completed all work related to the lowering of its Pipeline. Page 2 of 7 Agreement Incide1ntto Lowering Pipeline Exhibit B -3 Page 2 of 8 6. releases and quitclaims to Copano any and all claims for damages it might accrue related to Copano's lowering of its pipeline as contemplated hereby. 7. Except as otherwise provided herein, no paving for any use whatsoever is to be placed over the Easements without written permission from Copano. 8. Except as otherwise provided herein, shall not place or locate any_plantings, landscaping, signs, monuments, buildings, manholes, or other structures or facilities of any kind within the Easements without written permission from Copano. 9. shall be entitled to cross the Easements (only at right angles and never along the Easements area) with paved roads sufficient to provide access to the Property. The road crossings shall be designed and constructed such that there is a minimum cover of forty -eight (48) inches, measured from the top of the pipeline to the bottom of the pavement 10. Subject to the terms and provisions contained herein, shall be entitled to plant grass and other non - intrusive plantings in the Easements. Trees and bushes may not be planted on the Easements, and Copano shall have the right to remove any trees or bushes and to mow the Easements at any time. at its expense shall maintain the surface of the easements within the property by periodically mowing and other necessary maintenance. 11. shall be entitled to cross the Easements with underground communication conduits, electric distribution lines, telephone and cable lines and gas, water, drainage and sewer pipelines. Any such crossings shall be made in accordance with the requirements set forth in Exhibit "A" attached hereto and made a part hereof for all purposes. 12. shall exercise any and all rights to the Easements set forth herein or otherwise reserved to the landowner, including, but not limited to, the construction and operation of road crossings as permitted by paragraph 9 above, only in such a manner that, in Copano's sole discretion and opinion, (i) Copano's Pipeline or pipelines and any associated appurtenances and facilities located within the Easements shall not be endangered, obstructed, damaged, or interfered with, (ii) access to the Easements, Copano's Pipeline or pipelines and any associated appurtenances and facilities located within the Easements is not interfered with, (iii) traveling within and along the entire length of the Easements on foot or in vehicles or machinery is not prevented, (iv) the grade of the Easements and cover over the Pipeline or pipelines and any associated appurtenances located within the Easements are not changed, (v) Copano's Pipeline or pipelines and any associated appurtenances and facilities located within the Easements are left with proper, sufficient and permanent support, and (vi) use of the Easements by Copano for the purposes set forth in the Right of Way Contracts granting its easements is not interfered with. Without limiting the foregoing, Copano shall have the right to cut and remove any plantings, landscaping, pavement or other structures or facilities now or Page 3 of 7 Agreement Incidenll W f owering Pipeline Exhibit B -3 Page 3 of 8 hereafter located on or across the Easements, without any obligation to repair or replace same, for the purpose of exercising any of its rights under the Right of Way Contracts. 13. Not less than fifteen (15) days prior to the initiation of construction of any permitted road crossings, plantings, landscaping, structures or facilities within the Easements, as authorized herein, or its representative shall provide Copano with proposed plans for the design and construction of such structures or facilities. shall not initiate any landscaping, excavation or construction activities within the Easements without first receiving written approval of such plans from Copano. Following its receipt of such written approval, or its representative shall, at least twenty (20) business days prior to the commencement of excavation, landscaping, or other construction activities within the Easements, provide Copano with written notice of the commencement date or dates of the planned excavation and/or construction. Such notice shall be provided by hand delivery or telecopier (713.621.9545) to the following address: Copano 2727 Allen Parkway, Suite 1200 Houston, Texas 77019 Attention: Terrell White Vice President, Operations (713) 621 -9547 (Telephone) The address and telecopier number for notice hereunder may be changed upon delivery to of an instrument providing notice of such change. 14. TO THE FULLEST EXTENT PERMITTED BY LAW, AGREES TO INDEMNIFY, DEFEND, RELEASE, AND HOLD HARMLESS COPANO, ITS PARENT AND AFFILIATE COMPANIES, PARTNERS, SUCCESSORS, ASSIGNS, LEGAL REPRESENTATIVES, OFFICERS, DIRECTORS, SHAREHOLDERS, AGENTS AND EMPLOYEES (COLLECTIVELY "INDEMNITEES "), FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LOSSES, DAMAGES, CAUSES OF ACTION. SUITS AND LIABILITIES OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND ATTORNEY'S FEE, AND INCLUDING INJURY TO OR DEATH OF ANY PERSON. OR LOSS OF OR DAMAGE TO ANY PERPERTY (INCLUDING WITHOUT LIMITATION, CLAIMS FOR POLLUTION AND ENVIRONMENTAL DAMAGE), ANY CIVIL OR CRIMINAL FINES OR PENALTIES, DISCOVERED OR UNDISCOVERED, DIRECTLY OR INDIRECTLY ARISING OR ALLEGED TO ARISE OUT OF OR IN ANY WAY INCIDENTAL TO 'S OR ITS ASSIGNEE'S OR INVITEE'S, ACTIONS OR OMISSIONS ON THE EASEMENTS, OR ITS PERFORMANCE UNDER THIS AGREEMENT (COLLECTIVELY "(LIABILITIES "), EVEN THOUGH CAUSED BY OR ARISING FROM THE ACTIVE OR PASSIVE, JOINT OR CONCURRENT (BUT EXCEPTING SOLE) NEGLIENCE, BREACH OF CONTRACT OR OTHER LEGAL DUTY, OR FAULT OF ANY INDEMNITEE. THIS INDEMNITY INCLUDES Page 4 of 7 Agreement Incident t 0 Lowering Pipeline —1 Exhibit B -3 Page 4 of 8 'S AGREEMENT TO PAY ALL COSTS AND EXPENSES OF DEFENSE, INCLUDING WITHOUT LIMITATION ATTORNEYS' FEES, INCURRED BY ANY INDEMNITEE. THIS INDEMNITY SHALL APPLY, WITHOUT LIMITATION TO ANY "LIABILITIES" IMPOSED ON ANY PARTY INDEMNIFIED HEREUNDER AS A RESULT OF ANY STATUTE, RULE, REGULATION OR THEORY OF STRICT LIABILITY. EXPRESSLY ASSUMES THE ENTIRE LIABILITY PURSUANT TO THIS INDEMNIFICATION PARAGRAPH FOR ANY AND ALL "LIABILITIES" ARISING IN FAVOR OF ANY THIRD PARTY OR GOVERNMENTAL AGENCY OR ENTITY, THE PARTIES HERETO, THEIR EMPLOYEES AND THEIR EMPLOYEES' REPRESENTATIVES AND BENEFICIARIES. THIS INDEMNIFICATION SHALL NOT BE LIMITED TO DAMAGES, COMPENSATION, OR BENEFITS PAYABLE UNDER INSURANCE POLICIES, WORKERS' COMPENSATION ACTS, DISABILITY BENEFIT ACTS, OR OTHER EMPLOYEES' BENEFIT ACTS. IT IS UNDERSTOOD AND AGREED BY THAT IN THE EVENT ANY INDEMNITEE IS MADE A DEFENDANT IN ANY SUIT, ACTION OR PROCEEDING FOR WHICH IT IS INDEMNIFIED PURSUANT TO THIS AGREEMENT ( "CLAIM "), AND FAILS OR REFUSES TO ASSUME THE DEFENSE THEREOF, AFTER HAVING BEEN NOTIFIED BY COPANO TO DO SO, THAT SAID INDEMNITEE MAY COMPROMISE AND SETTLE OR DEFEND ANY SUCH CLAIM, AND SHALL BE BOUND AND OBLIGATED TO REIMBURSE SAID INDEMNITEE FOR THE AMOUNT EXPENDED BY INDEMNITEE IN SETTLING AND COMPROMISING ANY SUCH CLAIM, OR FOR THE AMOUNT EXPENDED BY INDEMNITEE IN PAYING ANY JUDGMENT RENDERED THEREIN, TOGETHER WITH ALL REASONABLE ATTORNEYS' FEES INCURRED BY INDEMNITEE FOR DEFENSE OR SETTLEMENT OF SUCH CLAIM. ANY JUDGMENT RENDERED AGAINST INDEMNITEE OR AMOUNT EXPENDED BY INDEMNITEE IN COMPROMISING OR SETTLING SUCH CLAIM SHALL BE CONCLUSIVE IN DETERMINING THE AMOUNT FOR WHICH IS LIABLE TO REIMBURSE INDEMNITEE HEREUNDER. 15 . This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas. 16. This Agreement contains the entire agreement between the Parties. No oral or written understandings, statements, promises, or inducements contrary to the terms of this Agreement exist as of the date of execution. and no oral modification of this Agreement shall be effective. 17. This Agreement may be executed in multiple counterparts, each of which shall constitute an original and shall be binding on the Parties only upon the execution of a counterpart by an authorized representative of each of the Parties. The original signature page and acknowledgement from each counterpart may be removed and integrated to form one or more original instruments reflecting the signatures and acknowledgements of all Parties. Page 5 of 7 Agreement Incident tQ Lowering Pipeline Exhibit B -3 Page 5 of 8 18. This Agreement shall be binding upon and inure to the benefit of each of the undersigned Parties and their respective successors, assigns, and legal representatives. The rights and obligations contained herein may be assigned by Copano in whole or in part. 19. Each signatory of this Agreement expressly states that he or she has the authority to sign this Agreement on behalf of and thereby bind the entity on whose behalf such signatory is executing this Agreement. 20. This Agreement only affects and pertains to the Property. Other lands covered by the Right -of -Way contracts are not affected hereby. The agreements and conditions contained herein are intended to be and shall have the effect of covenants running with the land as to the Property. Nothing in this Agreement shall in any way affect or change the terms of the Right of Way Contracts above referenced as same pertains to land outside of the Property. The parties hereto do hereby confirm, adopt, and ratify the Right of Way Contracts, as recorded in volume 1419, page 185; and volume 1396, page 491 of the Deed Records of County, Texas, and does by these presents grant, sell and convey to Copano rights -of -way and easements as described in said Right -of -Way Contracts, as same may have been amended, modified and/or restated by instruments of record in County, Texas, and subject also to the terms of this agreement, insofar and only insofar as pertains to the Property. Executed effective as of the day of , 2008. COPANO: Copano by: J. Terrell White, Vice President, Operations Page 6 of 7 Agreement Incident to Lowering Pipeline —140— 1 Exhibit B -3 Page 6 of 8 THE STATE OF TEXAS § § COUNTY OF § This instrument was acknowledged before me on this day of , 2007, by J. Terrell White, Vice President, Operations of Copano Pipelines GP, L.L.C., a Texas limited liability company, on behalf of said limited liability company acting in its capacity as managing general partner of My Commission Expires: Notary Public, State of Texas THE STATE OF TEXAS COUNTY OF § § § Page 7 of 7 Agreement Incident to Lowering Pipeline —1 41 — Exhibit B -3 Page 7 of 8 COPANO PIPELINES /SOUTH TEXAS, L.P. OPINION OF PROBABLE COST Proposed Relocation and Valve Sites on Copano Energy 6 -Inch Natural Gas Pipeline for City of Corpus Christi Item Quantity 100 MATERIALS Channel Crossing 100 400 110 2 Two Valve Sites 120 80 130 2 140 2 150 280 Unit ft 31- Oct -08 Description Unit Price Total Price Line Pipe; 6 5/8"; 0.280 wt; API 5L Grade B; ERW; $ 32.00 $ 14,080.00 PEB; DRL; 14 -16 mil FBE coating; FOB Corpus Christi, TX (Total price includes 10% freight) ea Misc Pipe Fittings (Total price includes 10% freight) $ 1,500.00 $ 3,300.00 ft Line Pipe; 6 5/8'; 0.280 wt; API 5L Grade B; ERW; PEB; DRL; 14-16 mil FBE coating; FOB Corpus Christi, TX (Total price includes 10% freight) ea lot If 200 CONSTRUCTION Channel Crossing 210 400 ft 220 1 days 230 1 days 240 2 days Two Valve Sites 250 2 days 260 2 days 270 1 days 280 2 days 290 2 days 300 OTHER 310 578 MMBtu 320 8 days 330 5 days 340 2 days 350 10 days 400 ALLOWANCES 410 1 Subtotal $ 17,380.00 $ 32.00 $ 2,816.00 6" Ball Valves (Total price includes 10% freight) $ 4,000.00 $ 8,800.00 Misc Pipe Fittings and Appurtenances (Total price $ 4,000.00 $ 8,800.00 includes 10% freight) 6' Chain Link Fence with 1' Barbed Wire (3- strands) $ 25.00 $ 7,700.00 at 30'x40' Valve Sites Base lay Tie -ins (assumes no stopple work required) Tie -ins (Flare) Demolition (pipe removal) Fabrication Base lay Site Work Tie -ins (assumes no stopple work required) Demolition (pipe removal) Blow down 6.2 miles 6" pipeline @ 800 psi Engineering / Right of Way Inspection Non Destructive Testing Company Field Allocation Costs AL Airport Safety and Security Requirements (Barricades, Traffic Control, Security Guards, Escons, Badging, etc. as required by CCIA) Subtotal $ 28,116.00 $ 90.00 $ 36,000.00 $ 6,000.00 $ 6,000.00 $ 5,000.00 $ 5,000.00 $ 3,000.00 $ 6,000.00 Subtotal $ 53,000.00 $ 5,000.00 $ 10,000.00 $ 5,000.00 $ 10,000.00 $ 3,000.00 $ 3,000.00 $ 5,000.00 $ 10,000.00 $ 1,000.00 $ 2,000.00 Subtotal $ 35,000.00 $ 5.80 $ 3.352.40 $ 1,000.00 $ 8,000.00 $ 800.00 $ 4,000.00 $ 1,500.00 $ 3,000.00 $ 500.00 $ 5,000.00 Subtotal $ 20,000.00 $ 10.000.00 $ 10,000.00 Subtotal $ 10,000.00 TOTAL OPINION OF CONSTRUCTION COST $ 163,496.00 -142- Exhibit B -3 Pace 8 of 8 \Mproject \CouncilExh10020b.dwq AGNES cc � � w PROPERTY LOCATION CORPUS CHRISTI INTERNATIONAL AIRPORT pt0 n W BEAR LN LOCATION MAP NOT TO SCALE W. POINT PROJECT # 10020 VICINITY MAP NOT TO SCALE EXHIBIT C Corpus Christi international Airport Drainage Phase 6 - Pipeline Adjustments 143 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 10 -31 -2008 MO' OM 15 CITY COUNCIL AGENDA MEMORANDUM COUNCIL ACTION DATE: November 11, 2008 AGENDA ITEM: Motion authorizing the City Manager or designee to execute a Real Estate Sales Contract with Noy R. Shockley and wife, Betty Shockley in the amount of $130,000 plus $1,900 in closing costs and an additional amount of $22,500 for relocation assistance to cover moving costs and incidental expenses in connection with a replacement dwelling, all for the purchase of fee simple property rights to Parcel 3, described as "Peary Place Annex B" (0.471 acres), with the street address of 1901 Paul Jones Ave., necessary for South Guth Ball Field Relocation, Project # 3337. ISSUE: On October 16, 2007 the City Council approved an ordinance to gift 140 acres of land in the vicinity of Ennis Joslin Road to Texas A &M- Corpus Christi for the future expansion of their campus. The conveyance required the replacement of City land currently used for ball fields at South Guth Park. City staff identified three parcels of land on Paul Jones Avenue totaling approximately 37acres suitable for the new ball field site. A resolution was passed by City Council on December 11, 2007 authorizing the acquisition of these parcels. On March 28, 2008, the City acquired Parcel 1 containing 29.455 acres. City land acquisition staff has now negotiated acquisition of Parcel 3 in the amount of $152,500 which includes $22,500 for relocation assistance. An additional $1,900 in closing costs is required for a total expenditure of $154,400. City Council approval is necessary for land acquisition expenditures which exceed $50,000. FUNDING: Park & Recreation 2008 Tax Notes 550701 - 3290 - 130201 RECOMMENDATION: Approval of the motion as presented. Attachments: Exhibit A. Exhibit B. Exhibit C. Background Information Parcel Location Map Contract Summary 1 C.- 3/6 CT. Kevin Stowers Interim Director of Engineering Services H:\HOME\EUSEBIOG \GEN\Agenda Items \S. Guth Ballfield Relocation ProjecLShockleyAgenda Memorandum.doc —147— BACKGROUND INFORMATION SUBJECT: South Guth Park Ball Field Relocation Project ( #3337) Acquisition of Parcel 3, .471 acres (Shockley) OVERVIEW: The City dedicated 140 acres of land to Texas A &M- Corpus Christi on October 16, 2007 for expansion of its campus. The acquisition of new land was needed to replace the current South Guth ball fields located within a portion of the dedicated land. The City initiated a search for replacement lands in close proximity of the present ball fields on Ennis Joslin. Eight various areas were evaluated based on size, price, location and other amenities. One of the sites was located on Paul Jones Avenue, south of South Padre Island Drive. At that site, three parcels of land were identified by City staff as being of sufficient size for the new ball fields. Preliminary studies were begun on this site to address ownership of the parcels, the presence of any jurisdictional wetlands, the presence of any endangered species, environmental site analysis, and other due diligence issues. Engineering and Park & Recreation staff also met with representatives of the three baseball leagues presently using S. Guth Park to present the site and obtain their feedback. On July 17, 2007, a presentation was made by the City Manager and Dr. Flavius C. Killibrew of Texas A &M- Corpus Christi to City Council indicating the City's selection of this alternative park site on Paul Jones Avenue. In December 2007, a resolution was approved for acquisition of the parcels and funding was allocated. Formal offers were then made to the landowners. On March 28, 2008, the City acquired its first parcel, Parcel 1, containing the 29.018 acres. Negotiations progressed for the other remaining two parcels. City staff recently completed negotiations for Parcel 3. The final parcel, Parcel 2, will be acquired through eminent domain proceedings since negotiations have reached an impasse. The subject Parcel 3 is a residential property located at 1901 Paul Jones Avenue. The property is located just south of South Padre Island Drive, as shown on the attached Exhibit B. This parcel of land is currently zoned F -R, or Farm Rural. The residential use is in compliance with the current zoning. The tract contains .471 acres of and along with a residence containing 2,380 square feet. The residential structure is constructed of concrete masonry blocks on a concrete slab and is in good condition. The subject property was appraised by Corpus Christi Appraisal Service, Inc. in the amount of $130,000. City staff proceeded with a formal purchase offer to the landowners for the appraised amount. The landowners would not accept the offer until a replacement home was located. With their displacement, they are entitled to relocation benefits in the total amount of $22,500. Relocation benefits are allowed by City Resolution No. 11809 approved November 28, 1973. These benefits are adopted from the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. A Real Estate Sales Contract has now been executed by the owners which is summarized on the attached Exhibit C. At the request of the landowners, the contract is to be escrowed at Security Title Company. —148— EXHIBIT A 1 of 2 PRIOR COUNCIL ACTION: 1. September 25, 2007 - Public hearing regarding South Guth Park land transfer to Texas A &M University- Corpus Christi for university expansion. 2. September 25, 2007 - Resolution determining that there is no feasible and prudent alternative to the using of South Guth Park by the Texas A &M University System for the expansion of Texas A &M University- Corpus Christi campus and further determining that all reasonable planning has occurred to minimize harm to South Guth Park resulting from such use or taking. (Resolution No. 027432) 3. October 16, 2007 - Ordinance authorizing the City Manager to execute a Declaration of Gift and Agreement between the City of Corpus Christi, Texas and the Board of Regents of the Texas A &M- University System for the Benefit of Texas A &M University- Corpus Christi relating to the conveyance of 140.39 acres of land in the vicinity of Ennis Joslin Road and Nile Drive, including South Guth park; and authorizing the City Manager to take all further actions to effect the gift and conveyance. (Ordinance No. 027451) 4. December 11, 2007 - Resolution determining a public necessity to acquire fee simple title to the surface estate only to three parcels of land for a ball field relocation project known as the South Guth Park Ball Field Relocation Project ( #3337), from the owners William H. Shireman, Jr., et al (Parcel 1), Vickers Family Trust (Parcel 2), and Noy Shockley, et ux (Parcel 3), for the public purpose and use as a ball field park and for other related park purposes; and authorizing the City Manager and the City Attorney to acquire the subject parcels by means of negotiations or exercise of the City's power of eminent domain. (Resolution No. 027521) 5. December 18, 2007 - Motion authorizing the City Manager or his designee to execute a Real Estate Sales Contract with William H. Shireman, Jr., et al in the amount of $295,000 plus $3,500 in closing costs for Parcel 1 described as 29.018 acres out of Lot 11 and the Southeast one -half of Lot 12, Section 31, Flour Bluff & Encinal Farm & Garden Tracts located on Paul Jones Avenue necessary for the South Guth Park Ball Field Relocation Project ( #3337). (Motion No. M2007 -327) PRIOR ADMINISTRATIVE ACTION: 1. July 17, 2007 - City Council Presentation by City Manager George K. Noe and Dr. Flavius C. Killebrew, President of Texas A &M University- Corpus Christi on the Texas A &M- Corpus Christi Expansion project. FUTURE COUNCIL ACTION: 1. Authorize the acquisition of parcels whose cost exceeds $50,000 and, 2. Authorize the payment of any Special Commissioners Award in connection with the condemnation of any parcels whose cost exceeds $50,000. H:\HOME \EUSEBIOG \GENV+genda Items \S. Guth Ballfield Relocation ProjectShockley\Backgrcund.doc —149— EXHIBIT A 2 of 2 File : \ Mproject \councilexhibits \exh3337b.dwg FARMLAND PARCEL 1 CITY OF CORPUS CHRISTI 29 AC. FARMLAND CITY PROJECT No. 3337 VICINITY MAP NOT TO SCALE EXHIBIT "B" SOUTH GUTH BALL FIELD RELOCATION PROJECT PARCEL 3 - SHOCKL y_ CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 11 -3 -2008 -- -- •• Real Estate Sales Contract Summary This Contract is entered into by Noy R. Shockley and wife, Betty Shockley of 1901 Paul Jones Avenue, Corpus Christi, Nueces County, Texas 78412 (Collectively called "Seller") and the City of Corpus Christi, a Texas home rule municipal corporation, 1201 Leopard Street, Corpus Christi, Nueces County, Texas 78469 -9277 ( "Buyer"). Terms: 1. Seller for the consideration and under the terms set out in the contract, agrees to convey to Buyer the following described property: A tract of land containing 0.471 acres together with all improvements referred to as "Peary Place Annex B ", a subdivision in the City of Corpus Christi, Texas as shown by map thereof recorded in Volume 30, page 11, map records of Nueces County, Texas also known by street address of 1901 Paul Jones Avenue. ( "Premises "). A metes and bounds description of the Premises is hereby attached and incorporated as Exhibit "A ". 2. Purchase Price - $130,000 cash for fee simple rights to the above described Premises; plus $22,500 in relocation assistance benefits for a total compensation amount of $152,500. 3. Seller to provide a title insurance policy at Buyer's expense. 4. Seller will deliver, at Buyer's expense, a good and sufficient General Warranty Deed. Buyer will pay all closing costs except costs to cure title, which must be paid by Seller. 5. All taxes to be paid by Seller, up to and including 2007. Taxes for 2008 will be prorated to the date of closing and paid for by Seller. 6. Buyer agrees to deposit $2,000 Earnest Money at the Title Company, which Seller may keep as liquidated damages should Buyer fail to consummate contract as specified, or Seller may seek to enforce specific performance of contract. 7. Buyer accepts title subject to all outstanding restrictive covenants, use restrictions and zoning and regulatory ordinances. 8. Transaction to be closed on or before 60 days from the date of the contract. Seller acknowledges that Seller has read the agreement, and it is not binding until approved by the City Council and signed by the City Manager or designee within 30 days of the contract date. 9. The contract will survive the closing of the sale and delivery of the General Warranty Deed and other conveyance documents. 10. Buyer shall have 30 days from the effective date of the contract to perform due diligence studies on the property. Buyer can cancel the contract and receive back the Earnest Money in the event Buyer finds the property to be unacceptable for any reason. EXHIBIT C —1 5 1— 11. Seller is responsible for payment of any and all broker's fees and commissions incurred in connection with the sale of the property. 12. At closing, the property will be conveyed free of the rights of possession of any third parties. 13. Seller makes the following representations and warranties: a. Seller has the absolute and unrestricted right, power, and authority to execute and deliver this contract and the documents to be executed and delivered by Seller in connection with the closing of the transaction. b. Seller has no knowledge of any pending or threatened litigation, condemnation, or assessment affecting the property. c. Seller has no knowledge that the property contains Hazardous Materials, contains any underground storage tanks, or is not in full compliance with all Environmental Laws. d. Seller has full and complete fee simple title to the property, subject only to liens and encumbrances, if any, disclosed on the title commitment or survey to be fumished to Buyer. e. No person, corporation, or other entity has or, on the date of closing, shall have any right or option to acquire the property. f. Seiler has not received notice from any governmental agency regarding the Seller's or Property's non - compliance with applicable laws, ordinances, regulations, statutes, rules, and restrictions relating to the property. 14. The sale of the property is without minerals. 15. Time if of the essence in closing this transaction. 16. Buyer is not purchasing the property from Seller under the threat of eminent domain. 17. The effective date of this Real Estate Sales Contract is the date in which the Contract is signed by the Buyer. 18. This Real Estate Sales Contract may be executed in counterparts and each shall have the effect of the original. 19. Seller is able to remain on the Premises up to 90 days after the date of closing. Seller will execute a Seller's Temporary Residential Lease at closing. H: \HOME\EUSEBIOG \GEN\Agenda Items \S. Guth Ballfield Relocation ProjectShockley\Contract Summary.doc EXHIBIT C -152- 16 AGENDA MEMORANDUM DATE: October 11, 2008 SUBJECT: J. C. Elliott Landfill — Groundwater Monitoring & Sampling (Project #5206) AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute a geotechnical services agreement with Kleinfelder, Inc. of Corpus Christi, Texas in an estimated amount not to exceed $204,400.00 for the J. C. Elliott Landfill Groundwater Monitoring and Sampling Agreement - 2009. ISSUE: The Texas Commission of Environmental Quality (TCEQ) requires groundwater sampling and monitoring to be undertaken in accordance with the approved Groundwater Sampling and Analysis Plan (GWSAP). RECOMMENDATION: Approval of the motion as presented. Lawrence Mikolajczyk Director of Solid Waste Services Attachments: a. Additional Information b. Contract Summary c. Site Map Kevin R. Stowers Interim Director of Engineering Services H:\ HOME \KEVINS \GEN\ LANDFILL \GWSAP\2009 \LabAW DMemo.doc —155— ADDITIONAL INFORMATION BACKGROUND: TCEQ requires the installation of groundwater monitoring wells around solid waste landfills. TCEQ regulations require groundwater monitoring continue around closed landfills for a period of thirty (30) years. The wells monitoring is to ensure there is no migration of leachate off the landfill site. Landfill cells are designed to prevent the flow of groundwater into and out of disposal cells. Modern disposal cells are constructed with liners and leachate collection system to allow any water to be collected for treatment. There are seventeen (17) groundwater monitoring wells located at J. C. Elliot Landfill. The Groundwater Sampling and Analysis Plan (revised March 5, 2002) sets for the sampling requirements and procedures sampling and analysis. The GWSAP requires semi - annual detection monitoring of the groundwater wells. Quarterly background monitoring of unfiltered metals for all wells will also be conducted. CONTRACT: The details of the monitoring are indicated in the contract summary. See Exhibit B. PRIOR COUNCIL ACTION: Approval of the FY2008 -2009 Annual Budget, Ordinance No. 027776. CONSULTANT SELECTION: Kleinfelder, Inc. is extremely familiar with the J. C. Elliot Landfill. This firm has provided geotechnical and laboratory services at J. C. Elliott Landfill for several years. Sampling collection will be done by the local Kleinfelder office. Their Waco office will perform the specific laboratory tests required and compile the required analysis reports for TCEQ. Kleinfelder has been active in the construction of disposal cells and the installation of the monitoring wells. They are thoroughly familiar with TCEQ landfill regulations. FUNDING: Funding is available from Solid Waste Operating Budget. EXHIBIT "A" Page 1 of 1 H:\ HOME \KEVINS \GEN\ LANDFILL \GW SAP\2009\LabAWOBKG.EXA.doc —156— AGREEMENT for Groundwater Monitoring and Services This AGREEMENT is between the City of Corpus Christi, Texas, a Texas home -rule municipal corporation, "CITY ", acting through its duly authorized City Manager or designee ( "City Engineer "), and Kleinfelder a Texas corporation or partnership, "LAB ", acting through its (Name) authorized representative who is (Title), which agree as follows: 1. DECLARATIONS "CITY" desires to engage "LAB" to provide services in connection with City's project, described as follows: J. C. Elliott Landfill — 2009 Groundwater Monitoring and Services (Project 5256) "PROJECT ". 2. SCOPE OF WORK "LAB" shall provide services to the PROJECT in accordance with the accompanying Scope of Services and Fee Schedule attached as "Exhibit A" and the Terms and Conditions to AGREEMENT attached as "Exhibit B" and Indemnification and Hold Harmless attached as "Exhibit C ". 3. FEE The "CITY" agrees to pay the "LAB" for services provided in accordance with Exhibit "A ", Scope of Services and Fee Schedule under this AGREEMENT, a total not to exceed fee of $204,400.00 (in figures), (Two Hundred Four Thousand Four Hundred and no /xx dollars (in words). 4. CITY'S DISCLOSURE OF HAZARDOUS &TOXIC MATERIALS AND CONDITIONS AT THE PROJECT SITE. Based upon currently available information, the only hazardous or toxic materials, as defined by the laws and regulations of the Federal government, the state, and city which exist at the PROJECT SITE are as follows: None. CITY OF CORPUS CHRISTI LAB: By: Oscar Martinez Assistant City Manager ATTEST: Armando Chapa, City Secretary RECOMMENDED: By: (Date) (SIGNATURE) (Date) 326 Industrial Drive (Address) Waco. TX 76710 (Date) (City /State /Zip) 254 - 754 -0369 Fax: 254-754-0478 (Phone /Fax No.) Kevin R. Stowers (Date) Interim Director — Engineering Services APPROVED AS TO FORM: Legal Department (Date) Funding Source: 530000 - 1020 -12520 Encumbrance: E525 fXk —157— Page 1 of 1 Exhibit B Pa 1 of 7 KL EINFEL DER Bright People. Right Solutions. V October 9. 2008 Proposal No. WAC8P340 Attn. Mr. Lawrence Mikolajczyk Assistant Director, Solid Waste Services City of Corpus Christi 2525 Hygeia — P.O. Box 9277 Corpus Christi, TX 78469- 9277 SUBJECT: Proposal 2009 Groundwater monitoring and services J.C. Elliott Landfill Corpus Christi, Texas 326 N. Industrial Drive Waco. TX 76710 pi 254.754.0369 11 254.754.0478 kleinfelder.com Dear Mr. Mikolajczyk: We are pleased to submit the following proposal for professional environmental services. This proposal presents the scope of work for expanded groundwater monitoring, and observation and quality control for installation of new wells. and the installation of new pumps. This proposal was developed based on our discussions and review of our scope of work/cost during the last four years of groundwater monitoring at the J.C. Elliott Landfill. We look forward to continue serving the City in their hydrogeological needs. If a portion of this proposal does not meet your project needs, or if those needs have changed, Kieinfelder is prepared to consider appropriate modifications, subject to the standards of care to which we adhere as professionals. Modifications, such as changes in scope, methodology, scheduling. and contract terms may result in changes to the quality of the assessments, as well as adjustment to our fees. SCOPE OF BASIC SERVICES Performance Period The services proposed herein will be performed from January 1. 2009 to December 31. 2009. Well Installation Quality Control Under terms of the permit amendment, the City of Corpus Christi will modify its present monitoring network of 17 wells to achieve compliance with the well spacing requirements specified in 30 TAC 330 06809PROP . WAC8P340 October 9. 2008 Copyright 2008 Kieinfelder -158- Exhibit B Mr. Lawrence Mikolajczyk October 9, 2008 Page 2 326 N. Industrial Drive Waco. TX 76710 p1254.754.0369 ti 254.754.0478 kleinfelder.com Subchapter J According to the plan, an additional fourteen wells will be installed. The installation of new wells will be conducted by a construction contractor. Kleinfelder will provide a qualified geologist to observe the installation of new wells and monitor compliance with specifications. Kleinfelder will record details of the installation to compare against the final report prepared by the drilling subcontractor. Kleinfelder, at the discretion of the City, will review the Drilling Contractor submittal to the TCEQ. The estimated cost of this activity is $8,129.00. New Pump Installation New wells will require dedicated pumps for long -term monitoring. Kleinfelder recommends that pumps in retained wells be replaced with new pumps. In recent years, a number of wells have had apparent statistically significant changes in chromium that have required one or more verification sampling events for each occurrence. Kleinfelder has inspected the pumps at wells where exceedances occurred, and observed pitting and corrosion of the stainless steel casings and filters. According to the manufacturer, the stainless steel is 316 - grade, which contains 16 -18% chromium by weight. In re- sampling, the pumps were removed and the wells were purged until fresh water filled the casing. Chromium concentrations always dropped back into the background range. The available evidence and behavior suggests that the stainless steel pumps are the source of chromium. Kleinfelder believes that replacing the pumps with non - stainless -steel pumps may correct the problem of repeated chromium exceedances. Kleinfelder proposes to prepare specifications for pump fabrication and to install new bladder pumps in the twenty -three wells that will comprise the new monitoring system. The wells are: MWs 1.2,4,5, 7, 12, 16 -32. The pumps will be constructed of chemically resistant plastic suitable for groundwater monitoring. The dedicated pumps in existing wells will be retained for 2 years until the wells are abandoned. The estimated cost of this activity is 326.179.00. Detection Monitoring The recently released position paper by the TCEQ states that detection monitoring must be continued in existing monitoring networks until new wells are installed and background sampling for new wells and constituents has been completed. Continuation of detection monitoring during the performance period will include two monitoring events in January 2009 and July 2009. Kleinfelder proposes to sample the existing 17 -well system for the current constituent list (GWSAP Revision 6, October 21, 2005). This activity will be in accordance with established sampling procedures and will comply with the new GWSAP (except for the constituents) and the TCEQ position 06609PROP WAC5P340 Copyright 2006 Kleinfeider -159- October 9. 2008 Exhibit B Page 3 of 7 Mr. Lawrence Mikolajczyk October 9, 2008 Page 3 326 N industrial Drve Waco. TX 76710 'al 254 754 0369 fl 254754 0478 kleinfelder.com paper. During the detection monitoring events, Kleinfelder will also conduct background sampling for new constituents in new wells and wells that will be retained in the future monitoring network. The estimated cost of this activity is $95,808.00. Background Monitoring The permit specifies sampling TCEQ- required constituents (fifteen metals plus volatile organics). Background monitoring for these constituents in new and existing wells is required, and will commence after well and pump installation is complete. Background sampling will be restricted to the 14 new wells (MWs 19 -32) and the 9 existing wells that will comprise part of the future monitoring network (MWs 1. 2. 4, 5, 7. 12, 16 -18) The projected sampling dates during the performance period are January, April, July and October, 2009. Kleinfelder will conduct the January and July quarterly background sampling events concurrent with detection monitoring events, and the associated costs are included with the detection monitoring. The twenty -three wells comprising the new system will be sampled for the constituents listed in the 2008 GWSAP in April and October 2009. The estimated cost for the 2 quarters of background sampling that will be conducted separately from detection monitoring is $52.964.00. Verification Sampling Historically, apparent statistically significant changes have occurred for one or more constituents in one or more wells. Kleinfelder will evaluate detection monitoring data after each event to determine if statistically significant changes have occurred. In the event that such changes have occurred. Kleinfelder will notify the TCEQ in accordance with the requirements, and conduct verification sampling of those wells in which SSCs occurred. The proposed budget includes one verification re- sampling per detection monitoring event (two annually) if required. The estimated cost for this activity is $10.085.00. Other Consulting Services Kleinfelder has been called upon to lend its expertise in a number of matters related to groundwater monitoring and permitting at the J. C. Elliott Landfill. We have included in this proposal a limited "on- call" budget for these services that will be expended as requested by the City In addition. this budget can be expended for unforeseen project conditions with approval from the City. The allowed cost for these services. if required, is S5,000. 06809PROP1 WACSP340 3 October 9, 2008 Copyright 2008 Kleinfelder -160- Exhibit B Mr. Lawrence Mikolajczyk October 9, 2008 Page 4 Assumptions and Exclusions 326 N. Industrial Drive Waco. TX 76710 pi 254 754 0369 fj 254 754 0478 kleinfelder.com 1. The QC oversight assumes that well installation will take 14 days. 2. Pump configuration is dependent upon the final depth of the well below top of casing, which is unknown for new wells at this point. The proposed cost is based on an assumed average depth of wells. Vendor rates may change, so the proposed cost contains a contingency for reasonable cost increases. 3. Costs for verification re- sampling are based on the following assumptions: 1) one re- sampling event per detection monitoring event lasting 2 days: 2) Analyses each event include 5 metals and 1 volatile sample. Cost for additional sampling and planning and implementing assessment monitoring, if necessary. are not included. 4. The cost for other consulting services is for approximately 1 week of a senior staff member. . ADDITIONAL SERVICES The following services are not included in the Basic Services and will be considered as Additional Services, if required or requested: • Meetings /interviews other than those described in the Basic Services. • The services of specialty subconsultants or other special outside services other than those described in Basic Services. • Any other services not specifically included in Basic Services. DELIVERABLES Four signed, bound copies of each of the reports will be prepared and transmitted to the City of Corpus Christi. In addition. we will submit three reports for each reportable event to the TCEQ. COMPENSATION Kleinfelder proposes to perform the Basic Services on a Time and Materials basis for S 204,400.00. This amount will not be exceeded without prior approval. The Client and Kleinfelder may subsequently agree in writing to provide for additional services to be rendered under this agreement for additional, negotiated compensation. 06809PR OP WAC8P34C 4 October 9. 2008 Copyright 2008 Klein!e:der -161- Exhibit B Page 5 of 7 Mr. Lawrence Mikolajczyk October 9. 2008 Page 5 UNIT FEES Description Units Rate Hydrogeologist. P.G. hr S115.00 Geologist / Environmental Scientist hr $95.00 Environmental Technician hr $85.00 Technician Drafter hr $50.00 Hr $55.00 Vendor Markup 15% Subcontractor Markup °!0 15% ESTIMATED COST Activity Cost Well Installation Quality Control $ 21,100 i New Pump Installation $ 26,600 Detection Monitoring $ 90,400 I Background Monitoring $ 49,900 Verification Sampling S 11,400 Other Consulting Services S5,000', Total S 204,400 326 N. Industrial Drive Waco. TX 76710 pl 254.754.0369 fi 254.754.0478 kleinfelder.com LIMITATIONS Our work will be performed in a manner consistent with that level of care and skill ordinarily exercised by other members of Kleinfeldens profession practicing in the same locality. under similar conditions and at the date the services are provided. Our conclusions. opinions and recommendations will be based on a limited number of observations and data. It is possible that conditions could vary between or beyond the data evaluated. Kleinfelder makes no guarantee or warranty. express or implied. regarding the services. communication (oral or written), report, opinion. or instrument of service provided. 06609PROP; WAC6P340 5 October 9. 2005 Copyright 2008 Kleinfelder —162— Exhibit B Mr. Lawrence Mikolajczyk October 9, 2008 Page 6 326 N. !ndustrtal Drive Waco TX 76710 pl22 547540369 fl 254.754 0478 kleinfeIder.com This proposal was prepared specifically for the client and its designated representatives and may not be provided to others without Kleinfelder's express permission. AUTHORIZATION Your standard service agreement can be used to authorize these services if agreeable. We appreciate the opportunity to submit this proposal and look forward to working with you on this project. If you have any questions or need additional information, please do not hesitate to call. We are committed to assist the City to ensure the success of this project. Best regards, KLEINFELDER Henry L. Fleischhauer, P.G. Project Manager (254) 754 -0369 055c9PROP: WAC8P340 Copyright 2008 Kleinfelder -163- Winfield L. McAtee, P.G Environmental Manager October 9. 2008 Exhibit B Page 7 of 7 File: \Mproject \councilexhibits \exh5206.dwg NUECES BAY AGNES HWY 44 ac x CORPUS ix CHRISTI r INTERNATIONAL o AIRPORT OSO CREEK J.C. ELLIOTT LANDFILL F.M. 43 FM 2444 PROJECT # 5206 LOCATION MAP NOT TO V'dl r EXHIBIT "C" J.C. ELLIOTT LANDFILL - GROUNDWATER MONITORING & SAMPLING 161 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 11 -3 -2008 17 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution approving the second amendment to Corpus Christi Business and Job Development Corporation's agreement to grant business incentives to Del Mar College for the retention of jobs, which grants an additional $50,000 for a student intern program to assist small businesses in Corpus Christi. ISSUE: To assist in the job development and growth of small businesses in the community. PREVIOUS COUNCIL ACTION: December 11, 2007 Approved an agreement to grant business incentives to Del Mar for an intern program; June 24, 2008 Approved first amendment to grant business incentives to Del Mar for an intern program CONCLUSION AND RECOMMENDATION: Staff recommends approval to grant business incentives to Del Mar College in the amount of $180,921 for an intern program to assist small businesses in Corpus Christi. —167— Irma Caballero Director of Economic Development BACKGROUND INFORMATION Del Mar College proposes to continue assisting small businesses by providing access to students to serve as interns in professional level positions. The small businesses will pay the student interns $6.55 per hour for a 19- hour work week. Del Mar College will match the small business contributions with 4A funds allowing the student interns to earn $13.10 per hour. Interns will be selected based on the needs of the small business(s) to provide these businesses with resources to increase efficiency and /or provide growth opportunities. Del Mar College is requesting an additional $50,000 to be added to the previously approved amount of $130,921 to operate the program through the summer of 2009. The total of $180,921 will be leveraged with an in -kind amount of $155,985 to fund 108 interns beginning with spring 2008 and continuing through the summer session 2009. The following is a breakdown of interns per semester: Spring 2008 2 Summer 2008 13 Fall 2008 20 Spring 2009 37 Summer 2009 36 The goals of the project is (1) to provide support to small businesses in Corpus Christi to encourage business growth, retention, economic development, and create a 10% newjob "return on investment" (at 108 internships they expect to create at least 11 new jobs over the project period) and (2) to provide "real- world" work experience for students at a living wage and with the potential for full -time employment. To date Del Mar has had four interns placed in permanent full -time jobs as a result of their internship opportunity: 2 in the spring semester of 2008 and 2 in the summer session of 2008. The following is a breakdown of the number of interns that have been placed to date: Spring 2008 4 Summer 2008 11 Fall 2008 20 —168— SECOND AMENDMENT TO AGREEMENT TO GRANT BUSINESS INCENTIVES TO DEL MAR COLLEGE — CORPUS CHRISTI FOR THE RETENTION OF JOBS A. The Agreement to Grant Business Incentives for the Retention of Jobs ("Agreement ") between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and Del Mar College— Corpus Christi, ( "Del Mar College "), with an effect date of January 15, 2008, is amended as follows: 1. The third paragraph of Section 1.2 is revised to read as follows: "The program will commence in the spring semester of 2008, continuing through the fall semester of 2008T and sencluding -with the spring semester of 2009, and concluding with the summer session of 2009. Sixty nine One hundred eight intern positions are to be provided. The grant amount is $130,921 $180,921, with $100,651 $155,984.87 being used for intern matching funds which will be equally matched by the small businesses' contributions. The $27,565 $24,936.13 is for two half -time intern positions for spring semesters of 2008 and 2009 and summer session of 2009 and one half -time intern position during the summer session of 2008 and fall semester of 2008 within the Del Mar Office of Career Planning & Placement to assist with administration and evaluation of the program. It is anticipated that up to two interns will be used in spring semester of 2008, 13 interns will be used in the summer session of 2008, 27 20 interns in the fall semester of 2008, and 27 37 interns in the spring semester of 2009. and 36 interns in the summer session of 2009. The performance requirements shall be continuously maintained during the entire term of this agreement." 2. Schedule A of Section 2.1.1 is revised to read as follows: SCHEDULE A DEL MAR's CONDITIONS PRECEDENT AND PERFORMANCE REQUIREMENTS DEL MAR's TIME OF PERFORMANCE CORPORATION'S PERFORMANCE REQUIREMENTS Placement of two (2) interns with small businesses in Corpus Christi, placement based on the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to •rovide su. sort to small January 15, 2008 through May 15, 2008 $6,571.01 payable no later than June 15, 2008 (invoiced on a monthly basis) Page 1 of 7 Second Amendment Small Business Internship Agreement.del 69— businesses in Corpus Christi that will encourage growth, retention, economic development and job creation. Employment of two half -time interns for 19 hours per week and 12 weeks per semester during the Spring Semester of 2008, within the Office of Career Planning & Placement to assist with administration and evaluation of the program. Placement of up to 13 June 2, 2008 through $20,433.99 payable no later interns with small August 18, 2008 than September 15, 2008 businesses in Corpus (invoiced on a monthly Christi, placement based on the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus basis) Christi that will encourage growth, retention, economic development and job creation. Employment of one half -time intern for 19 hours per week and 12 weeks during the Summer Session of 2008, within the Office of Career Planning & Placement Office to assist with administration and evaluation of the program. Placement of up to 27-20 August 25, through $51,958 $32,854.80 interns with small �2008 - December --0 31, 2008 payable no later than businesses in Corpus January 15, 2009 Christi, placement based on (invoiced on a monthly the needs of the small business with the goal of basis) Page 2 of 7 Second Amendment Small Business Internship Agreement.4Qc7 0— providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development and job creation. Employment of one half -time intern for 19 hours per week and 12 weeks per semester during the Fall Semester of 2008, within the Office of Career Planning & Placement to assist with administration and evaluation of the program. Placement of up to 27-37 January-4-5 12, 2009 $5-17955-$55,255.80 through May 30, 2009 payable no later than June interns with small businesses in Corpus 15, 2009 Christi, placement based on (invoiced on a monthly the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus basis) Christi that will encourage growth, retention, economic development and job creation. Employment of two half -time interns for 19 hours per week and 12 weeks per semester during the Spring Semester of 2009, within the Office of Career Planning & Placement to assist with administration and Page 3 of 7 Second Amendment Small Business Internship Agreement.do4 71— evaluation of the program. Del Mar's PERFORMANCE REQUIREMENTS Del Mar's TIME OF PERFORMANCE Placement of up to 36 June 1, 2009 through $51,958 $55,255.80 interns with small August 31, 2009 payable no later than businesses in Corpus September 15, 2009 Christi, placement based on (invoiced on a monthly the needs of the small basis) . business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development and iob creation. Employment of two half -time interns for 19 hours per week and 12 weeks per semester during the Summer Session of 2009, within the Office of Career Planning & Placement to assist with administration and evaluation of the program. 3. Schedule C of Section 2.2.2 is revised to read as follows: SCHEDULE C Del Mar's PERFORMANCE REQUIREMENTS Del Mar's TIME OF PERFORMANCE Create and maintain not less than two intern (2) employment positions to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $11.70 per hour, plus personnel costs during the Spring Semester of 2008. January 15, 2008 through May 15, 2008 Create and maintain one (1) intern employment position to assist in the small June 2, 2008 through August 18, 2008 Page 4 of 7 Second Amendment Small Business Internship Agreement.doa 7 2— business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $11.70 $13.10 per hour, plus personnel costs during the Summer Session of 2008. Create and maintain not less than one (1) intern employment position to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $13.10 per hour plus personnel costs during the Fall Semester of 2008. August 18, 2008 through December -40 31, 2008 Create and maintain not less than two intern (2) employment positions to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $13.10 per hour plus personnel costs during the Spring Semester of 2009. January-1-5 12, 2008 through May 15, 2009 Create and maintain not less than two June 1, 2009 through August 31, 2009 intern (2) employment positions to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $13.10 per hour plus personnel costs during the Spring Semester of 2009. B. This amendment to the Agreement takes effect on the latest date that either party executes this amendment C. This amendment does not effect the term of the Agreement. D. Any provision of the Agreement that is not expressly amended by this amendment remains unchanged and in full force and effect. E. This amendment to the Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. EXECUTED on the date shown opposite the signature of each party. Page 5 of 7 Second Amendment Small Business Internship Agreement.6el 73- Corpus Christi Business & Job Development Corporation By: Date: Attest By: Eloy Salazar Chairperson Armando Chapa Assistant Secretary Page 6of7 Second Amendment Small Business Internship Agreement.do474- Del Mar College— Corpus Christi By: c,` ' rdk9 -- . ., - "70, M 6 , Mark Escamilia President Date: II ItiI�R Attest: By: Title: 111.1 ;MMITE7111 _ ;Q;71,rsh Page 7 of 7 Second Amendment Small Business Internship Agreement.dol 75- Fmanet Page 1 of 2 A RESOLUTION APPROVING THE SECOND AMENDMENT TO CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION'S AGREEMENT TO GRANT BUSINESS INCENTIVES TO DEL MAR COLLEGE FOR THE RETENTION OF JOBS, WHICH GRANTS AN ADDITIONAL $50,000 FOR A STUDENT INTERN PROGRAM TO ASSIST SMALL BUSINESSES IN CORPUS CHRISTI WHEREAS, on June 3, 2008, the Corpus Christi Business and Job Development Corporation ( "4A Board ") and Del Mar College ( "Del Mar') to executed an Agreement to Grant Business Incentives. to Texas A & M University — Corpus Christi for the Retention of Jobs, which granted $130,921 in business incentives to Del Mar for a student intern program to assist small businesses in Corpus Christi; WHEREAS, on June 24, 2008, the City Council approved an amendment to the agreement that modified the implementation schedule, since Del Mar was not able to fully implement the program during the Spring semester in 2008; and WHEREAS, due to the successful results during the summer and fall of 2008, the 4A Board has decided to expand the student intern program by providing Del Mar with an additional $50,000 to expand the program in the Spring and Summer of 2009 by 31 additional interns; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Second Amendment to the Agreement to Grant Business Incentives to Del Mar College for the Retention of Jobs between the 4A Board and Del Mar, which is attached to this resolution, is approved. ATTEST: Armando Chapa City Secretary APPROVED as to form: November 3, 2008 R. J - Rr nin First Assistan City Attorney For the City Attorney Res -Del Mar Incentives -2nd Amendment -- 1031 2008 9c7 6— CITY OF CORPUS CHRISTI Henry Garrett Mayor Page 2 of 2 Corpus Christi, Texas of Novemer, 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Res -Del Mar Incentives -2nd Amendment -- 1031200asir7 7_ 18 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution approving the second amendment to Corpus Christi Business and Job Development Corporation's agreement to grant business incentives to Texas A &M University- Corpus Christi for the retention of jobs, which grants an additional $70,000 for a student intern program to assist small businesses in Corpus Christi. ISSUE: To assist in the job development and growth of small businesses in the community. PREVIOUS COUNCIL ACTION: December 11, 2007 Approved an agreement to grant business incentives to TAMUCC for an intern program; June 24, 2008 Approved first amendment to grant business incentives to TAMUCC for an intern program CONCLUSION AND RECOMMENDATION: Staff recommends approval to grant business incentives to TAMUCC in the amount of $195,929 for an intern program to assist small businesses in Corpus Christi. l�n r • l� "Trma Ca Ilero Director of Economic Development —181— BACKGROUND INFORMATION Texas A &M University- Corpus Christi (TAMUCC) proposes to continue assisting small businesses by providing access to students to serve as interns in professional level positions. The small businesses will pay the student interns $6.55 per hour for a 20- hour work week. TAMUCC will match the small business contributions with 4A funds allowing the student interns to earn $13.10 per hour. Interns will be selected based on the needs of the small business(s) to provide these businesses with resources to increase efficiency and /or provide growth opportunities. TAMUCC is requesting an additional $70,000 to be added to the previously approved amount of $125,929 to operate the program through the summer of 2009. The total of $195,929 will be leveraged with an in -kind amount of $175,662 to fund 118 interns beginning with spring 2008 and continuing through the summer session 2009. The following is a breakdown of interns per semester Spring 2008 2 Summer 2008 13 Fall 2008 33 Spring 2009 35 Summer 2009 35 The goals of the project is (1) to provide support to small businesses in Corpus Christi to encourage business growth, retention, economic development, and create a 10 % new job "return on investment" (at 118 internships they expect to create at least 12 new jobs over the project period) and (2) to provide "real- world" work experience for students at a living wage and with the potential for full -time employment. To date TAMUCC has had one intern, from the summer session 2008, placed in a permanent full -time position as a result of the internship opportunity. The following is a breakdown of the number of interns that have been placed to date: Spring 2008 2 Summer 2008 13 Fall 2008 33 —182— Page 1 of 2 A RESOLUTION APPROVING THE SECOND AMENDMENT TO CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION'S AGREEMENT TO GRANT BUSINESS INCENTIVES TO TEXAS A &M UNIVERSITY — CORPUS CHRISTI FOR THE RETENTION OF JOBS, WHICH GRANTS AN ADDITIONAL $70,000 FOR A STUDENT INTERN PROGRAM TO ASSIST SMALL BUSINESSES IN CORPUS CHRISTI WHEREAS, on January 8, 2008, the Corpus Christi Business and Job Development Corporation ( "4A Board ") and Texas A &M University— Corpus Christi ( "A &M -CC ") to executed an Agreement to Grant Business Incentives to Texas A & M University - Corpus Christi for the Retention of Jobs, which granted $125,929 in business incentives to A &M -CC for a student intern program to assist small businesses in Corpus Christi; WHEREAS, on June 24, 2008, the City Council approved an amendment to the agreement that modified the implementation schedule, since A &M -CC was not able to fully implement the program during the Spring semester in 2008; and WHEREAS, due to the successful results during the summer and fall of 2008, the 4A Board has decided to expand the student intern program by providing A &M -CC with an additional $70,000 to expand the program in the Spring and Summer of 2009 by 48 additional interns; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Second Amendment to the Agreement to Grant Business Incentives to Texas A & M University - Corpus Christi for the Retention of Jobs between the 4A Board and A &M -CC, which is attached to this resolution, is approved. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED as to form: November 3, 2008 R.,l�y f dining" First Assistant City Attorney For the City Attorney Res-A&M Incentives -2nd Amendment -- 10312008.doc -183 - Henry Garrett Mayor Page 2 of 2 Corpus Christi, Texas of November, 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Res -A &M Incentives -2nd Amendment -- 10312008.doc_ 1 84 SECOND AMENDMENT TO AGREEMENT TO GRANT BUSINESS INCENTIVES TO TEXAS A &M UNIVERSITY— CORPUS CHRISTI FOR THE RETENTION OF JOBS A. The Agreement to Grant Business Incentives for the Retention of Jobs ( "Agreement ") between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and Texas A &M University— Corpus Christi, ( "TAMU -CC "), last executed on January 8, 2008, and amended on July 9, 2008,is amended as follows: 1. The third paragraph of Section 1.2 is revised to read as follows: "The program will commence in the spring semester of 2008, continuing through the fall semester of 2008, and "! conclude with the summer session in 2009. Seventy 118 intern positions are to be provided. The grant amount is$1 -25929 $195,929, with $107,520 $175,662 being used for intern matching funds which will be equally matched by the small businesses' contributions. The $18,109 $20,267 is for two half -time intern positions for spring semesters of 2008 and 2009 -and one half -time intern position during the summer session of 2008, and -fall semester of 2008, spring semester of 2009, and summer session of 2009 within the Office of Career Services to assist with administration and evaluation of the program. It is anticipated that up to two interns will be used in spring semester of 2008, 13 interns will be used in the summer session of 2008, 26-33 interns in the fall semester of 2008, and 30 35 interns in the spring semester of 2009, and 35 interns in the summer session of 2009. The performance requirements shall be continuously maintained during the entire term of this agreement." 2. Schedule A of Section 2.1.1 is revised to read as follows: SCHEDULE A TAMU -CC's CONDITIONS TAMU -CC's TIME OF CORPORATION's PRECEDENT AND PERFORMANCE PERFORMANCE PERFORMANCE REQUIREMENTS REQUIREMENTS Placement of two (2) May 30; 2008 $8491-$8,105 payable no interns with small businesses in Corpus later than June 15, 2008 Christi, placement based on the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary Page 11 of 6 1023208145— TAMUCC Development Agreement 2nd Amendment 102328.tl�5— goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development and job creation. Employment of two interns for 20 hours per week and 12 weeks per semester during the Spring Semester of 2008, within the Office of Career Services to assist with administration and evaluation of the program. Placement of up to 13 interns with small businesses in Corpus Christi, placement based on the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development and job creation. Employment of one intern for 20 hours per week and 12 weeks per semester during the Summer Session of 2008, within the Office of Career Services to assist with administration and evaluation of the program. August 31, 2008 Up to $2-14194-$16,652 payable no later than September 15, 2008 Placement of up to 25-33 interns with small businesses in Corpus Christi, placement based on December 31, 2008 Up to $12,212.55 $55,058.00 payable no later than January 15, 2009 Page 2 of 6 TAMUCC Development Agreement 2nd Amendment 102320071A 6— the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development and job creation. Employment of one intern for 20 hours per week and 12 weeks per semester during the Spring Semester of 2008, within the Office of Career Services to assist with administration and evaluation of the program. Placement of up to 30 May 30, 2009 Up to $54,101.15 35 interns with small $58,057.00 payable no later businesses in Corpus than June 15, 2009 Christi, placement based on the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development and job creation. Employment of twe -one interns for 20 hours per week and 12 weeks per semester during the Spring Semester of 2008, within the Office of Page 3 of 6 TAMUCC Development Agreement 2nd Amendment 1023200SM 7- 3. Schedule C of Section 2.2.2 is revised to read as follows: SCHEDULE C Career Services to assist with administration and evaluation of the program. , TAMU -CC's TIME OF PERFORMANCE Create and maintain not less than two intern (2) employment positions to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $11.70 per hour, plus personnel Placement of up to August 31, 2009 Up to $58,057.00 payable 35 interns with small no later than September 15, businesses in Corpus 2008 Christi, placement based on the needs of the small business with the goal of providing the business with resources that make the business more effective and /or provide growth opportunities. The primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development and iob creation. Employment of one intern for 20 hours per week and 12 weeks per semester during the Summer Session of 2009, within the Office of Career Services to assist with administration and evaluation of the program. 3. Schedule C of Section 2.2.2 is revised to read as follows: SCHEDULE C TAMU -CC's PERFORMANCE REQUIREMENTS , TAMU -CC's TIME OF PERFORMANCE Create and maintain not less than two intern (2) employment positions to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $11.70 per hour, plus personnel January 15 through May 15, 2008 Page 4 o 6 08. TAMUCC Development Agreement 2nd Amendment 102320a08p 8— costs during the Spring Semester of 2008. Create and maintain not less than one intern (1) employment position to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $11.70 per hour, plus personnel costs during the Summer Session of 2008. May 15 through August 15, 2008 Create and maintain not less than one ' intern (1) employment position during the Fall 2008 semester, August 15 through December 15, 2008; and January 15 through May 15, 2009; and May 16 through August 15, 2009 Spring 2009 semester, and Summer 2009 session to assist in the small business employer intern program for its facility in Corpus Christi, Nueces County, Texas, with an hourly wage of $13.10 per hour plus personnel costs during the Fall Semester of 2008, and - Spring Semester of 2009, and Summer Session of 2009. B. This amendment to the Agreement takes effect on the latest date that either party executes this amendment C. This amendment does not effect the term of the Agreement. D. Any provision of the Agreement that is not expressly amended by this amendment remains unchanged and in full force and effect. E. This amendment to the Agreement may be executed in any number of counterparts. each of which shall be deemed an original and constitute one and the same instrument. EXECUTED on the date shown opposite the signature of each party. Corpus Christi Business & Job Development Corporation By: Date: Eloy Salazar Chairperson Page 5e of 6 TAMUCC Development Agreement 2nd Amendment 1023200H.ia 9— Attest By: Armando Chapa Assistant Secretary Texas A &M University— Corpus Christi By: Harvey KnuII Vice President for Sponsor Programs Date: Attest: By: Title: Page 6of6 TAMUCC Development Agreement 2nd Amendment 1023200rdt 9 0 19 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: An ordinance appropriating $25,300 from the Reserve for Municipal Court Juvenile Case Manager fund for juvenile case manager salaries currently budgeted in the General Fund; changing the FY 2008 -09 operating budget adopted by Ordinance 027776 to increase appropriations by $25,300; and declaring an emergency. ISSUE: City staff was given direction to bring the Municipal Court judges' salaries to the City's pay plan mid -point within two years. Funding for these salary increases can be provided from savings generated in the General Fund, made available by utilizing the Municipal Court Juvenile Case Manager Reserve fund for case manager salaries currently budgeted and being paid out of the General Fund budget. For Fiscal Year 2008 -09, the amount required to fund one case manager from November 24, 2008 (first increase in judges' salaries) through the end of the fiscal year is $25,300. PREVIOUS COUNCIL ACTION: October 21, 2008 — Municipal Court Judge Salary Review Presentation REQUIRED COUNCIL ACTION: Approval of the Ordinance appropriating funds from the reserve for municipal court juvenile case manager fund for the salary of one juvenile case manager. CONCLUSION AND RECOMMENDATION: Staff recommends City Council approval of the Ordinance as presented in order to make the necessary funds available for salary increases for Municipal Court judges. Attachment: Ordinance —193— Cindy O'Brien, Interim Assistant City Manager Page 1 of 2 AN ORDINANCE APPROPRIATING $25,300 FROM THE RESERVE FOR MUNICIPAL COURT JUVENILE CASE MANAGER FUND FOR JUVENILE CASE MANAGER SALARIES CURRENTLY BUDGETED IN THE GENERAL FUND; CHANGING THE FY 2008 -09 OPERATING BUDGET ADOPTED BY ORDINANCE 027776 TO INCREASE APPROPRIATIONS BY $25,300; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $25,300 is appropriated from the reserve for Municipal Court Juvenile Case Manager Fund for Juvenile Case Manager salaries currently budgeted in the General Fund. SECTION 2. That FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 is changed to increase appropriations by $25,300. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the _ of November, 2008. ATTEST: Armando Chapa City Secretary APPROVED as to form: October 28. 2008 By: Lisa Aguil Assistant City Attorney For the City Attorney CITY OF CORPUS CHRISTI Henry Garrett Mayor H: \LEG- DIR \Lisa0008 ORDINANCES \ORD- Approp- JUVenik G Akvranager fund_1.doc Page 2 of 2 Corpus Christi, Texas Day of 2008 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I /we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Henry Garrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon H: \LEG- DIR\Lisa\2008 ORDINANCES \ORD- Approp- JuveniVe Q 4Aanager fund_1.doc 20 AGENDA MEMORANDUM Date: November 11, 2008 SUBJECT: Library Board Ordinance AGENDA ITEM: Ordinance amending Section 2 -75 "Membership; Terms and Filling Vacancies," of the Code of Ordinances, Regarding Membership of the Library Board; Providing for an Effective Date; Providing for Severance; and Providing for Publication. ISSUE: This ordinance provides the following: • Reducing the number of members from an even number of 10 (ten) to an odd number of 9 (nine), so as to avoid a tie vote. • Allowing La Retama Club to nominate any member of its organization to the Library Board with vote, subject to confirmation by the City Council. As it stands now La Retama Club is given an automatic seat, but only the president can serve; also the Club's appointment is not currently subject to City Council confirmation. • Allowing the Friends of Corpus Christi Public Libraries to nominate one of its board members to the Library Board with vote, subject to confirmation by the City Council. As it stands now the Friends president is allowed a non - voting seat on the Library Board. • The remaining 7 (seven) of 9 (nine members) would be appointed the City Council; the Library Board may make recommendations. RECOMMENDED COUNCIL ACTION: The Library Board and staff recommend approval. Herb Canales Director of Libraries —199— AN ORDINANCE AMENDING SECTION 2 -75 "MEMBERSHIP; TERMS AND FILLING VACANCIES," OF THE CODE OF ORDINANCES, REGARDING MEMBERSHIP OF THE LIBRARY BOARD; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Section 2 -75 "Membership; terms and filling vacancies," of the Code of Ordinances, is amended to read as follows: "Sec. 2 -75. Membership; terms and filling vacancies "(a) There shall be a library board consisting of tern nine (40 9) voting members. Eight Seven (8 7) members shall be appointed by the city council with terms of two (2) years or until a successor is appointed_^t vo(2) (1) The eighth member will be a La Retama Club member nominated by the La Retama Club. (2) The ninth member will be a Friends of Corpus Christi Public Libraries Board member nominated by the Friends of the Corpus Christi Public Libraries Board. (b) Each nominee in subsection (a)(1) and (a)(2) of this section, must be confirmed by a majority of city council members with terms of two (2) years or until a successor is appointed. (c) The representatives from the La Retama Club and the Friends of Corpus Christi Public Libraries are subiect to all City rules applying to boards, commissions and committees. (d) If the La Retama Club and /or the Friends of Corpus Christi Public Libraries choose not to nominate a representative from their respective organizations to the Library Board, the Library Board may recommend a candidate to the city council, who shall make the appointment, designating a term of two (2) years. Lei Terms of members appointed and confirmed by the city council shall expire November 5, five (5) in odd years and —200— five four (6 4) in even years. The library board may make recommendations to the city council for new board members. A vacancy shall be filled for the unexpired term by the same means as the original appointment." SECTION 2. This ordinance shall take effect upon and after publication of this ordinance. SECTION 3. 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 this City Council that every section, paragraph, subdivision, clause, phrase, word, or provision hereof be given full force and effect for its purpose. SECTION 4. 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. -201- That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly That the foregoing ordinance was read for the second time and passed finally on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa Henry Garrett City Secretary Mayor APPROVED as to form: November 3, 2008 By: Y� tte Agu Assistant City Attorney For City Attorney —202— 21 AGENDA MEMORANDUM Date: November 11, 2008 SUBJECT: Library Board Ordinance AGENDA ITEM: Ordinance amending Section 2 -78 "Lay Representative of City," of the Code of Ordinances, Regarding Selection of the Lay Representative of the City to the South Texas Library System; Providing for an Effective Date; Providing for Severance; and Providing for Publication. ISSUE: The Corpus Christi Public Library serves as headquarters of the South Texas Library System. The Texas State Library and Archives Commission designates and funds ten such regional library systems each fiscal year. Corpus Christi has served in this capacity since state fiscal year 1971 -72. The purpose of South Texas Library System is to provide supplementary and auxiliary services to its 54 member libraries in a twenty-six county area of South Texas. Corpus Christi Public Library is both administrative headquarters for STLS and a fully participating member of STLS. This ordinance is a housekeeping item which changes Corpus Christi's representation on the System's Advisory Council from the Library Board chair being the automatic representative to any Library Board member subject to confirmation by the City Council. RECOMMENDED COUNCIL ACTION: The staff recommends approval. —205— Herb Canales Director of Libraries AN ORDINANCE AMENDING SECTION 2 -78 "LAY REPRESENTATIVE OF CITY," OF THE CODE OF ORDINANCES, REGARDING SELECTION OF THE LAY REPRESENTATIVE OF THE CITY TO THE SOUTH TEXAS LIBRARY SYSTEM; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 7. Section 2 -78 "Lay representative of city," of the Code of Ordinances, is amended to read as follows: "Sec. 2 -78. Lay representative of city. "The chairman of the a Retama Library Board 4s- hereby shall nominate designated a Library Board member as the lay representative to the South Texas Library System seuncil. The nominee shall be confirmed by a majority of city council members. The lay representative will serve for a term consistent with the South Texas Library System bylaws. In the event that the city's lay representative cannot attend a meeting, the La Retama Library Board chairman may designate any other library Board member as an emergency alternate representative to South Texas Library System meetings." SECTION 2. This ordinance shall take effect upon and after publication of this ordinance. SECTION 3. 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 this City Council that every section, paragraph, subdivision, clause, phrase, word, or provision hereof be given full force and effect for its purpose. —206— SECTION 4. 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. -207- That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly That the foregoing ordinance was read for the second time and passed finally on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa Henry Garrett City Secretary Mayor APPROVED as to form: November 3, 2008 / �..I By: tilt .IL. irk Y$ -tte • t ' • S' Assistant City Attorney For City Attorney —208— 22 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 2 regarding membership in Youth Advisory Committee; providing for severance; and providing for publication. ISSUE: The City Council's Youth Advisory Committee currently has 17 seats. Since its inception in 2005, achieving quorum and keeping committee seats filled has been difficult. The Parks and Recreation Department recommends reducing the number of seats on the committee from 17 to nine (9) so a full committee may be appointed and have an opportunity to conduct official business. REQUIRED COUNCIL ACTION: Amend the Code of Ordinances, City of Corpus Christi, Chapter 2 regarding membership in the Youth Advisory Committee to reduce the number of seats on the committee. PREVIOUS COUNCIL ACTION: The Youth Advisory Committee was created through ordinance in November 2005. Board /Commission Action: The Youth Advisory Committee has not been able to achieve quorum since January 2008. FUNDING: N/A CONCLUSION AND RECOMMENDATION: Staff recommends approval of the ordinances. /���L �- Sally Gavlik, Director Parks and Recreation Department Attachments: Background Information —211— BACKGROUND INFORMATION The City Council's Youth Advisory Committee (YAC) was created in November 2005 to assist and advise the City of Corpus Christi City Council on youth issues. The Committee currently consists of 17 student members, grades 9 -12, that are residents of the City of Corpus Christi. Ten committee members represent each of the five City Council Districts, and seven represent the community at large. The size of the membership has hindered the progress of the committee over the last two years. In addition to having difficulty soliciting enough applications to make appointments to the committee, the YAC has only met quorum once in the last 17 months. The committee members are typically the best and brightest from our local schools — therefore they are involved in many extracurricular activities that run concurrently with the YAC meetings and events. While the VAC has been able to complete a few small projects throughout the last two years, the committee has been unable to conduct official business or embark on any large, meaningful projects. Staff suggests reducing the number of committee members from 17 to nine which will provide for representation of each of the five City Council Districts, as well as four members to represent the community at large. All but three members from last year's committee have graduated or moved away, being Marcos Bustamante (District One), James and Mecklin Ragan (serve At- large, live in District 5). All three will be seeking reappointment in November. —212— 1 AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, CHAPTER 2 REGARDING MEMBERSHIP IN YOUTH ADVISORY COMMITTEE; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Code of Ordinances, Chapter 2, Administration, Article IV, Miscellaneous Boards, Commissions and Committees, is amended to to read as follows: DIVISION 24. CITY COUNCIL'S YOUTH ADVISORY COMMITTEE Sec. 2 -250. Created; purpose. There is hereby created a seventeen - member advisory committee that shall assist and advise the City Council on City youth issues. The committee shall be known as the City Council's Youth Advisory Committee ( "Youth Committee "). Sec. 2 -251. Powers and duties. The Youth Committee shall exercise the following powers and duties: (1) Assist and advise the City Council on City youth issues; (2) Conduct surveys and determine the concerns and interest of the youth of Corpus Christi; (3) Encourage youth leadership and responsibility through volunteerism and community involvement; (4) Create opportunities for public discussion of youth issues through meetings. workshops and conferences; (5) Look for ways to promote understanding, respect and community involvement among youth groups of all cultures and backgrounds; and (6) Assist in planning, recommending and implementing youth activities. Sec. 2 -252. Member qualifications; appointments; parks staff liaison. (a) The Youth Committee consists of seventeen (17) nine (9) members, composed of students in grades 9 through 12 that are City residents. (b) Representation shall be as follows: at I act two (2) members from ach of the Appointments are made H: \LEG- DIR \Lisa\2008 ORDINANCES \Youth Advis ammittee October 9 2008.DOC 2 by the majority vote of the City Council and shall be as follows: one (1) from each of the Council member districts and four (4) at large. However, all current Youth Committee member(s) in service when this ordinance is finally adopted continue to serve until the end of their initial term of appointment. (c) Each member must reside in Corpus Christi and be enrolled in a public, private, parochial, or home school, located in one of the following Texas Counties: Nueces, San Patricio, Kleberg, or Aransas. (d) The youth committee member selection process is as follows: submission of application to the city secretary's office, review and recommendation by the majority of the youth committee, and appointment by the city council. (e) In the initial year after the adoption of this ordinance, five (5) members shall serve a two -year term and four (4) members a one -year term, as determined by drawing. Thereafter, each member shall serve a two -year term and is eligible for reappointment. Any vacancy occurring during a term of membership shall be filled by majority vote of City Council members appointment to fill the unexpired term. Terms commence upon date of final approval of the ordinance from which this division derives. (f) Each member's term automatically expires three (3) months after high school graduation. (g) The parks and recreation department will assign city staff to serve as staff liaison to the youth committee. Sec. 2 -253. General committee rules apply. Except as otherwise provided in this division 24, the general rules in division 1 (sections 2 -60 through 2 -69) and Council Policy 14 (Resolution No. 21901 adopted Mar. 22, 1994) governing City boards, commissions, and committees apply to the Youth Committee. Sec. 2 -254 Meetings; quorum; voting. (a) The Youth Committee shall hold regular monthly meetings in compliance with section 2 -62. Special meetings may be called by the chair or upon request of two (2) members of the Youth Committee. Notice of meetings shall be posted in compliance with the Texas Open Meetings Act. (b) A quorum shall consist of a majority of the members of the Youth Committee and any issue to be voted on shall be resolved by a majority of those present. Whenever a quorum is not present at the meeting, the meeting will be considered adjourned and will be rescheduled to the next regular meeting date, or to another date that the chair deems appropriate. Sec. 2 -255. Attendance at meetings; vacancies- H: \LEG- DIR \Lisa\2008 ORDINANCES \Youth Ada4244Gommittee October 9 2008.DOC 3 (a) Unexcused absences from more than twenty -five (25) percent of regularly scheduled meetings during a term year shall result in an automatic vacancy and the vacancy shall be promptly reported to the city council. An excused absence is defined in section 2 -61. (b) A vacancy resulting from early expiration of term or from absences shall be filled in accordance with process established in subsection 2 -2520 above. (Ord. No. 026539, § 1, 11 -8 -2005) Sec. 2 -256. Rules of procedure; bylaws. (a) The Youth Committee shall conduct its meetings in accordance with state law, City Charter, ordinances, and policies and Roberts Rules of Order. Order of business shall be as specified on the agenda. Actions shall be taken on basis of motion, duly seconded, by members of the Youth Committee. (b) The Youth Committee shall keep minutes of its proceedings that indicate the attendance of each member and the vote or failure to vote of each member on each question. (c) A copy of the bylaws is attached to Ordinance No. 026539 and is on file in the City Secretary's office. A bylaw shall not be suspended without approval of the city Parks Director, or designee ( "Parks Director "). A bylaw shall not be suspended (or amended) if the suspension (or amendment) would violate state law, City Charter, ordinance, or policy. Upon amendment of the bylaws and approval by parks director, parks director shall file a certified copy of the bylaws, as amended, with the city secretary. Parks director shall not unreasonably withhold approval of suspension or amendment. 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 this City Council that every section. paragraph. subdivision. clause phrase, word or provision of this ordinance be given full force and effect for its purpose. SECTION 3. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. H: \LEG- DIR \Lisa\2008 ORDINANCES \Youth Advts% 6ommittee October 9 2008.DOC That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummel) Michael McCutchon Bill Kelly That the foregoing ordinance was read for the second time and passed finally on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa City Secretary APPROVED as to form: Lisa Aguil Assistant City Attorney For City Attorney By: Cot . 3c. 20o7 —216— Henry Garrett Mayor 22 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: A. Public Hearing and Ordinance designating the Lon C. Hill Power Plant a reinvestment zone, within the City of Corpus Christi, Texas, under the Property Redevelopment and Tax Abatement Act (Chapter 312 of the Texas Tax Code). B. Resolution authorizing the execution of an agreement with Lon C. Hill, L.P. providing for temporary tax abatement. ISSUE: To assist in the attraction of long-term investment and the establishment of new jobs in Corpus Christi to enhance the City's economic base. PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends approval to grant a temporary property tax abatement agreement to Lon C. Hill, LP for a minimum capital investment of $125 million and the creation of 22 full-time jobs. l ~ `~~ . rma Ca Iler ~J Director of Economic evelopment Attachment: Lon C. Hill Air Quality Impact Report BACKGROUNDINFORMATION Lon C. Hill, LP is proposing to design, construct, start-up, and operate the re-powered Lon C. Hill power station. The Lon C. Hill re-powering project will utilize several existing components and add a highly efficient and environmentally benign combustion turbine firing natural gas that will feed hot gas to an unfired boiler. The project proposes a minimum capital investment of $125 million, creation of 22 full-time permanent jobs at an average annual salary of $75,000, and approximately 300 jobs during construction. The facility will generate about 300 megawatts of power, which is about enough to provide power forthe entire City of Corpus Christi. This plant will export its power into the Electric Reliability Council of Texas (ERGOT) grid thereby helping to ease the forecasted increases in demand of electric generation in the region. This project will help alleviate anticipated power shortages in the region and will provide significant investment of capital during the construction and long-term operating periods of the facility. The City recognizes the positive economic impact that the investment of $125 million in the project will bring to the City through the development and diversification ofthe economy. Texas A&M University-Kingsville was commissioned to do an impact analysis on the air quality in the Corpus Christi Air shed under a number of scenarios. Previously, a modeling exercise based on converting the Lon C. Hill plant to a solid fuel based syngas turbine configuration was conducted. A copy of that final report is attached. The new proposal for converting the plant to a gas turbine will reduce the NOx, VOC, and CO emissions significantly as compared to the solid fuel configuration as shown in the table in the report summary. The higher emission scenario indicated an impact on ozone production to be less than 0.2 parts per billion within the air shed. Lon C. Hill, LP is requesting tax abatement under the Non-Renewal Community Facilities section of the Tax Abatement Guidelines and Criteria for a facility which provides not less than 20 (but no more than 99) new permanent full-time jobs. During construction (not to exceed 2 years) the abatement will be at 100%; following construction the project will be eligible for tax abatement at 50% for up to five years. The proposed tax abatement is in accordance with the City's Tax Abatement Guidelines and Criteria and designation of the area as a Reinvestment Zone. The Lon C. Hill Power Plant is located at 3501 Callicoate Road, and the boundaries of this plant are described in Exhibit "A." This tax abatement agreement is designed to cover the two (2) year construction period and five additional years post construction, not to exceed a total of seven years. The tax abatement will apply to the new capital construction at the plant. The value of the land comprising the property will be taxed at full value. The base year value of existing improvements comprising the property are also fully taxable, as well as the value of innlinihlo n~nnnr+.. Inelin iFJn nrnnerFv ie (Iefinorl ac lanri inven4nriee ennnliee 4nnle housing, hotel accommodations, deferred maintenance investments, improvementsforthe transmission of electrical energy, improvements to real property with an economic life of less than 15 years, and property owned or used by the State of Texas or its political subdivisions. The estimated added value ($125,000,000) of eligible property (buildings, structures, fixed machinery, equipment, site improvements) added during the construction period, will be subject to abatement under the tax abatement agreement at 100%. Tax abatement will ensure the redevelopment of the Lon C. Hill Plant as an electrical generation facility that can provide power to help meet the needs of the local community, industry, and the state's power grid. Las Brisas Energy Center, LLC Air Quality Impact Summary Chase Power Development, LLC, filed an air permit application with the Texas Commission on Environmental Quality (TCEQ) for a petroleum coke fueled power plant along the north side of the Corpus Christi Ship Channel, the Las Brisas Energy Center, LLC. Texas A&M University- Kingsville (TAMUK) was commissioned to do an impact analysis on the air quality in the Corpus Christi Airshed. A copy of the fmal report is attached. The following is a brief summary of the results of that study. TAMUK was to determine the impact of the Las Brisas plant on the ozone attainment of the airshed, particulazly considering the reduction in the ozone standard enacted by U.S. EPA in -March 2008. The standard was reduced from 0.08 ppm (84 ppb) to 0.075 ppm (75 ppb). The new standard is facing a court challenge. Additionally, TAMUK included analyses of the plant's impact on oxides of nitrogen, NOx, and oxides of sulfur, SOx. The impact analyses were performed utilizing various computer simulations of atmospheric dispersion and photochemical reactivity as described in the report. The model base included the "typical" meteorological conditions conducive to elevated ozone levels in the area, which only occur 4 to 5 days in a yeaz, typically. This modeling event simulates an episode that occurred in September 1999. The ozone model was an impact analysis for the Las Brisas emissions. The run, including the Las Brisas emissions, was compared with a base case without those emissions, and the difference calculated. The results aze reported in Figures 11, 12, and 13 in the report. As indicated in those plots, the fresh NOx emissions caused a dual impact. Near the vicinity of the projected power plant, a small reduction in ozone level was observed extending south and west from the plant, and over the metropolitan area of Corpus Christi. An increase in ozone level occurs further downwind of the source and is predicted to be up to 1.1 ppb. The predicted increase does not become evident until the plume has migrated north and west into western San Patricio County and Jim Wells County. The plume of increased ozone levels then dissipates quickly as it moves further downwind. The impact on the surface ozone concentrations is shown in Figures 12(a) and 12(b). Figure 12(b) provides a zoomed in view of the data in the two-county urban airshed region. The positive difference shows the increase in the predicted ozone levels, while negative values show the decrease in predicted surface ozone levels. These figures predict no impact on CAMS 04, but predict CAMS 21 to be within the area of ozone reduction. This effect is demonstrated by the time plot, Figure 13. The Las Brisas case predicts a lower ozone concentration at the peak ozone levels at CAMS 21 on both high days. This would indicate that the area's attainment status, which is determined by the concentrations measured at CAMS 04 and CAMS 21, wouldn't be adversely affected. Author. Ron Barnard Environmental Programs Specialist City of Corpus Christi Modeling Analysis of the Impact of a New Source on Ozone Air Quality in the Corpus Christi Urban Airshed by the Department of Environmental Engineering Texas A&M University -Kingsville Project Lead: Dr. Kuruvilla John Associate Dean Frank H. Dotterweich College of Engineering ~'`~~ MSC 188 ~~- Texas A&M University -Kingsville " ~'~ ~;3 Kingsville, Texas 78363 r ~~ ~ Phone: (361) 593-2001 ?~` Email: k-john@tamuk.edu 3 ." _.......~._ .EY3 Research Scientists: Dr. Jhumoor Biswas Mr. Zuber Farooqui Ms. Saritha Karnae June 8, 2007 Impact Assessment of a New Point Source in the Corpus Christi Urban Airshed Nueces Svngas Power Plant Case Studv Project Summary The overall impact of Nueces Syngas Power Plant emissions on the attainment status of the study region is negligible. The increase in surface level was less than a part per billion. The following narrative describes the background, the modeling techniques, and strategies, and provides an analysis if the results achieved. 1 Introduction The South Texas region has experienced occasional exceedances of the 8-hr National Ambient Air Quality Standazds in different urban and semi urban regions in recent times. The region is characterized by a unique climatology of semi arid coastal and inland areas and consists of a number of urban areas classified by Texas Commission on Environmental Quality (T'CEQ) to be in near non-attainment status of the 8-hour ozone Standazds. These near non-attainment areas (NNA) have to demonstrate an appropriate planning process to continue to remain in attainment of 8-hour ozone fedeml Standazds. Curtently, the state of Texas has three urban aeeas that are in violation of the National Ambient Air Quality Standazds (NAAQS) for ozone. These include Houston-Galveston, Dallas-Fort Worth and Beaumont-Port Arthur urban airsheds. Due to seveml recent regional-scale high ozone episodes in Texas, the Texas Commission on Environmental Quality (TCEQ) has designated additional five urban regions as being Near Non-attainment Areas (NNA). The NNAs meet the federal standards but remain at risk of violating this standazd. These NNAs include the cities of Austin, Corpus Christi, Longview-Tyler-Marshall, San Antonio and Victoria in Texas. The Corpus Christi azea is a semi-arid coastal urban airshed located in south Texas and is approximately 250 km north of the U.S: Mexico border. The Corpus Christi urban airshed (CCUA) is comprised of Nueces and San Patricio County. The dominant sectors of economy in the urban area include- petroleum refining, chemical process industries, military bases, port, and tourism. Despite being the sixth largest industrialized urban area in Texas, Corpus Christi is currently in compliance with the U.S. Environmental Protection Agency's (EPA) National Ambient Air Quality Standards (NAAQS) for ozone. Major industrial point sources, on-road, and non-road mobile sources comprise the largest emissions categories within this urban airshed. Air quality models aze typically used to evaluate the impact of a new source within an urban airshed. There aze two classes of air quality models used widely. One class of air quality models is the Lagrangian dispersion models used for permit applications by evaluating the dispersion characteristics of inert plumes and the corresponding maximum distance impact of emissions from industrial stack sources. The comprehensive Eulerian photochemical models are the other class of atr quality models. These provide a robust mathematical description of complex emissions and meteorological characteristics and its interactions in the urban and regional-scale atmospheres. They are widely used in the study of urban and regional ozone and aerosols in the atmosphere. Tn this preliminary study, we have employed a photochemical model (CAMx) to provide a quick assessment of the impact of a new source within the Corpus Christi urban airshed. The new emission source to be assessed on this study is the Nueces Syngas Power Plant and will be located within the industrialized corridor of the Corpus Christi ship channel. 2 Model Description 2.1 Photochemical Modelling The Comprehensive Air quality Model with extensions (CAMx) version 3.1 [lJ has been applied to assess the impact of new sources within the Corpus Christi region. The photochemical model CAMx, that simulates various atmospheric physical and chemical processes, was applied in a nested mode in this study. The base case and the new source simulations were performed far the ozone episodic period of September 13-21, 1999 that occurred in South Texas. However, the model was fine tuned to account for a future yeaz of 2007. The initial conditions for the modeling system were set at background levels. The modeling domain'and model setup for the CAMx model is described below: 2.1.1 Model Setup and Study Domain The photochemical modeling system is in Lambert conformal projection system centered at (-100, 40) with standard parallel latitudes at 30 and 60 degrees, respectively. The coarse outermost grid of the photochemical modeling domain grid resolution of 36 km covers South, Southwest and Central portion of continental United States. The inner grid of 12 km grid resolution envelops the Houston-Galveston area, Beaumont-Port Anhur area, Dallas-Fort Worth area and the eastern Texas region. The innermost grid of 4 km grid resolution containing 90 x 108 cells is focused on South Texas and covers all of the near non-attainment areas (NNAS) in this region (Austin, San Antonio, Victoria, and Corpus Christi). The 14 vertical layers in CAMx extend from the surface all the way to 4 km above the surface level. Further details regazding the model set up have been presented in [2]. 2.2 Emissions Processor - - The Emission Processing System version 2 (EPS2) [3J was utilized to process emission inventory over the modeling domain and generate CAMx ready input gridded emission files. The report by Environ [2] highlights all of the details concerning the emissions inventory and emissions processing for the ozone episode of September 1999 and for the base year of 2007. 23 Meteorological Modet Hourly meteorological data from September 13- September 21, 1999 were simulated with the Fifth Generation Pennsylvania State University/National Center for Atmospheric Research (PSU/NCAR) Meteorological Model (MMS) version 4.3.(Grell et al., [I1]) in a 3-way nested grid mode to produce gridded three-dimensional meteorological inputs for the CAMx photochemical model. The meteorological model used analysis grid-based nudging and the TCOON (Texas Coastal Ocean Observation Network) data for observational based nudging along the coast. The MMS model consists of 28 half sigma levels in the vertical. Details regarding the meteorological model simulations have been presented in the report [4J. 3 Base Case 2007 A comprehensive impact assessment of anew/future point source in the Corpus Christi industrialized ship channel titled `Nueces Syngas Power Plant' was carried out by the Air Quality Research Group within the Department of Environmental Engineering at Texas A&M University -Kingsville. The evaluation was conducted using agrid-based photochemical model for the future base year of 2007. The data for the 2007 base modeling episode was obtained from the Texas Commission on Environmental Quality (TCEQ). This future case modeling episode was developed on the basis of an existing high ozone episode of September 13-20, 1999 that was simulated using a photochemical modeling system. Emissions from the existing 1999 episode were projected for 2007 while keeping the high ozone days and meteorology the same as those observed during the episode days of September 1999. Revised and refined emissions estimates from 2000 and 2002 were also employed to provide a more reasonable dataset. 4 Nueces Syngas PowerPlantEmissions The Nueces Syngas power plant is a new source of emissions in Corpus Christi urban airshed. Its projected emissions were added to the grid-based photochemical modeling system. Net emissions were treated as elevated point source and estimated to be approximately 455.5 tons/year of NOx, 97.1 tons/yeaz of VOC and 944.4 rons/year of CO. These new emissions were processed, chemically speciated, and allocated both temporally and spatially using EPS2. Stack information and characteristics of facility were used as provided. New emissions were processed and subsequently added to the model ready input files employed in the new developed 2007 future base case. New developed 2007 future base case photochemical model includes removal oflon C. Nill power plant emissions and addition of new projected/estimated 2007 emissions from the Topaz power plant. Emissioms from Nueces Syngas Power Plant NOx 455.5 rons/year VOC 97.1 tons/year CO 944.4 tons/yeaz 5 Impact Assessment of Nueces Syngas Power Plant The CAMx photochemical model was employed to quantify the impact of new emissions on the urban ozone levels. Nueces Syngas power plant emissions were added to the new developed 2007 base case. The impact on ozone was quantified by subtracting from the new base case runs from added Nueces Syngas run as described above. - Impact 03 (8-hr), ppb =Added Nueces Syngas run -New 2007 Base Case Figure 1 shows time series at CAMS 04 and 21 for future base case of year 2007. The EPA recommended method of peak ozone analysis difference between maximum peak of the control case and maximum peak of base case was employed. The model performed reasonably well for the peak ozone days and was able to capture the diurnal chaaacteristics of the surface ozone levels. It was found that the emissions From the new point source had a rather disproportionate impact on the urban airshed. Overall, the net impact of Nueces Syngas power plant emissions was measurably very small and probably within the uncertainty of the model. Dual impact has been observed because of the Nueces Syngas emissions within urban airshed and surrounding areas. Neaz the vicinity of the projected power plant a small titration effect was observed and a subsequent increase of ozone concentrations further downwind of the source was negligible. The delta impact on the surface ozone concentrations are shown in Figure 2. Figure 3 provides a zoomed in view of the same data that is displayed on a GIS base map of the two-county urban airshed region. The positive differenceshows a dis-benefit or an increase in the predicted ozone levels, while negative values show a decrease in the predicted surface ozone levels. The figures reveal that the overall impact of the new source on the attainment status of the study region is negligible and the increase in 8-hr surface ozone levels waaiess than 0.20 parts per billion. CAMSO4: CORPUS CHR CORPUS CH 255.089 -1338.443 100 90 80 70 .~ a 60 50 ~ 40 30 20 10 0 9/1359 1ao 90 eo 70 a so = 50 O 40 30 20 10 0 9/13199 9/14199 9/1559 9/16/99 9/17!99 9/18/99 9!19/99 9120/99 Date Figure 1. 2007 Base case time series of modeled ozone concentrations at CAMS 04 and 21 sites in contrast to the observed concentrations during the 1999 high ozone episode. 9/1459 9/1559 9118!99 9/17/99 9/18/99 9/t 959 9/20/99 Date CAMS21: CORPUS CHR 9860 LAB 242.681 -1331.090 Impact of Nueces Syngas MNQCoMrol )- MNgBue) efir Drone, ppb 0.780110 OA80 .0.000 -0.090 -+ `: -0.190 ~ `: PPB 1 92 September 73,1999 0 AO LO Mina -0.504 at (59,711 Moo-- 0.195 at(52~5) Figure 2. Impact ofNueces Syngas Power Plant on 8-hr average ozone within Corpus Christi Urban Avshed. (Maximum concentration in the new control case - Maximumconcentration inthe base case). 2 '`~' 7 ~~~~o i ~~ ~~. ~ ~. ;, ~ ids ~ i v 4 ~ s ~n-GIWS iI' e° . ~'hi ~ `~'' ~ ~" 1 , . . i kva~~+ x~ ~=~- ~ ~ ~ s ~ ~u~ ~ ~ ~ ~~~~~ ~ . ~ u~? a.,~,Y4 LCPFasfing (m) 0 6.000 72.000 24 000 76.000 40.000 ~~~ hMela L~~4 &br Ozone. ppb ~ -0.leo -x.535 -0135--0000 ~ .~ -0.090--0.045 E~-0045--0000 „~i,---J~ -0000--0.OiS -0.a5-0.090 - 0.090.0.533 -0.135-0180-- _-- Figure 3. Impact of Nueces Syngas Power Plant on 8-hr average ozone within Corpus Christi Urban Airshed. (Maximum concentration in the new control case - Maximum concentration in the base case). References [I] ENVIltON Intematicnal Corporation. 2002. User's Guide Comprehensive Air Quality Model with Extensions CAMx) Version3.10. ENVBtON International Corporation, Novato, California [2] ENVIItON International Corporation, 2002. Report submitted to Texas Commission on Environmental Quality: Emissions Processing for the Joint CA Photochemical Modeling of Four Southern Texas Near Non-Attainment Areas. [3] EPA 1992.User's guide for the Urban Air Shed Model Volume P/: User's Manual for the Emissions Preprocessor System 2.0 EPA-450/4-90-007D(R), U.S. Environmental Protection Agency, Research Triangle Pazk, NC. [4] Grell, G. A., J. Dudhia, and D. R. Stauffer, A description of the Fifth Generation Penrs State/NCAR Mesosca[e Mode! (MMS), NCAR Tech. Note, NCAR TN-398-STR,138 pp. 1994. [5] UT Austin and ENVIRON, 2004. Report submitted to Texas Commission on Environmental Quality: Development of the September 13-20,1999 Base Case Photochemical Model For Austin's Early Action Compact. N1t>~_: ,~a,TE Op Buddy Garcia, Chdirman ~ ~J~ Larry R. Soward, Commisstoner z ~ I>'•, Bryan W. Shaw, Ph.D., Commisstoner ~ ~ Mark R. Vickery, P.G., Executive Director TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas b3' Reducing and Preventing Pollution August 6, 2008 MR ROY HART PROJECT DIRECTOR LON C HILL LP 3355 W ALABAMA ST STE 500 F10USTON TX 77098 Standard Permit Registration Number: Location: City/County: Project Description/CTnit: Regulated Entity Number: Customer Reference Number: New oe Existing Site: Affected Permit (if applicable): Standard Permit Type: ~IU~ 12 z~~a 81494 Renewal Date: May 4, 2017 3501 Callicoatte Rd Corpus Christi, Nueces County Lon C Hill Power Station RN100215979 G'N602656688 New None _ _ __ ___ _ __ Electric Generator Lon C. Hill, LP has registered. the emissions associated with the Lon C. Hill Electric Generating Station under the standard permit listed abovi; as authorized by the Commissioners pursuant to Title 30 Texas Administrative Code § 116.602 (30 TAC § 116.602). Emissions are listed on the attached table. Also, the owner/operator shall submit a certified test report showing that the 0.141b/ mega watts per hour of nitrogen oxide emission standard has been met within 60 days of tha completed performance test under the provisions of Title 40 Code of Federal Regulation Part 60, Standards of Performance of New Stationary Sources or this standard permit is no longer valid. For rule information see www.tcegstate.tx.us/permittingair/nav/standard.htmL This standard permit authorizes operations including planned startup emissions as represented in the registration, These emissio~i sources will be identified on the maximum emissions rates table (MERl'). Maintenairce activities were not represented in the registration and ar•e not authorized. These maintenance activities will need to be authorized separately ur the future. As of July 1, 2008, all analytical data generated by a mobile or stationary laboratory in support of compliance with air permits must be obtained from a NELAC (National Environmental Laboratory Accreditation Conference) accredited laboratory under the Texas Laboratory Accreditation i'rogra~n or meet one of several exemptions. Specific information concerning which laboratories must.be accredited and which are exempt may be found in 30 TAC §§ 25.4 and 25.6. For additional information regarding the laboratory accreditation program and a list of accredited laboratories and their fields of accreditation, please see the following website: http:!/www.tceq.state.tx.us/compliance!compliance_suppoNga/env_lab_accreditation.lttml For questions regazding the accreditation program, you may contact the Texas Laboratory Accreditation Program at (512) 239-3754 or by email at IabprgmsQtceq.state.tx.us, Mr. Roy xart Page 2 August 6, 2008 Re: Standard Permit Registration Number 81494 The company is also reminded that these facilities may be subject to and must comply with other state and federal air quality requirements. if you have questions, please contact Mr. Kevin Whitenight at (512) 239-4334. This action is taken under authority delegated by the Executive Director of the TCEQ. Sincerely, Anne M.lnmari, P.E., Manager Rule Registrations Section Air Permits Division Texas Commission on Environmental Quality cc: Air Section Manager, Region 14 -Corpus Christi Project Number: -139331 Standard Permit Maximum Emission Rates Table Permit Number 81494 The facilities and emissions inciuded in this.table have been represented and reviewed as the maximum enussions authorized bgthis standard permit registration. M. ¢fiuss3lo > .: ,. ~ ,; .. ~~ EPN lE ' i S VOC N O. CO PM,. SOr N lls m ~ar on ourtt IbsNr tpy .Ibslhr tpy IbrPor tpy Ibslhr tpy Lbs/hr tDY Ibs/hr tpy LCHSlCumhtt4ticn Turbine I1.1 25.14 40.5 97.00 43.6 98.98 43.93 48.47 27.41 6.82 20.OI 46.74 5mnup Erttissions _ (TPY cmissinn arc included in the LCHS Combustion Turbine) 48.50 207.20 582.00 LCHS-LOV /Turbine Lube Oil Vrnt 0.01 - 0.03 LCIlS /gTLOV 0.0t 0.03 FUG! FLgitivct Nawral Ges O.17 6.74 FUG-SCRlSCR Piping 0.02 0.05 TOTAL E51ISSION3 (TPY): "gSAX1htUM;at'ERATtNC.9CAEpt17E 59.71 ! Ats 25.86 urslDry:: 247.7 97.00 D~ 625b yllVeek: 98.98 41.95 `,~Wee 48.51 kelVear 27.41 G3i2 ':: llop 20.63 ralYeiwr. 4679 5477 * VOC -volatile organic compounds PMIO- particulate matter equal to or less than ]0 microns in size NOX ~ -total oxides of nitrogen CO -carbon monoxide SOz -sulfur dioxide NH1-Ammonia **Fugitive emissions ue an estimate only and should not be considered as a maximum allowable AN ORDINANCE DESIGNATING THE LON C. HILL POWER PLANT REINVESTMENT ZONE, WITHIN THE CITY OF CORPUS CHRISTI, TEXAS, UNDER THE PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT (CHAPTER 312 OF THE TEXAS TAX CODE); AND DECLARING AN EMERGENCY WHEREAS, the Texas Property Redevelopment and Tax Abatement Tax (the "Act"), Texas Tax Code, Chapter 312, as amended, authorizes the City Council of the City of Corpus Christi to designate a zone for property tax abatement under the Act; and WHEREAS, it is the policy of the City to encourage the redevelopment of areas wherein the creation and retention of new jobs and investment will benefit the area economy, provide needed economic opportunities, strengthen the real estate market, and generate tax revenues to support local services; and WHEREAS, on Monday, November 3, 2008, notice of a public hearing on the designation of the proposed Zone was published in a newspaper of general circulation in the City of Corpus Christi, and on Monday, November 3, 2008, notice was given by U.S. mail, certified, postage prepaid, return receipt requested, to the presiding officer of the governing body of each taxing unit with property within the proposed Zone under the Act; and WHEREAS, the City Council of the City of Corpus Christi conducted a public hearing on Tuesday, November 11, 2008, at which all interested persons were entitled to speak and present evidence for or against the designation of a zone for temporary property tax abatement; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Creation of Zone. The City of Corpus Christi finds and determines that the improvements proposed by Lon C. Hill, L.P., within the Reinvestment Zone are feasible and. practical and would be a benefit to the land to be included in the Lon C. Hill Power Plant Reinvestment Zone, and to the City, after any tax abatement agreements entered into under the Act have expired. The area to be designated as the Lon C. Hill Power Plant Reinvestment Zone under the Act is reasonably likely, as a result of the designation, to contribute to the expansion of primary employment and will attract major investment in the Zone that would be a benefit to the property and would contribute to the economic development of the City. The Lon C. Hill Power Plant Zone is located at , Corpus Christi, Texas, and the boundaries are more particularly described on Exhibit A attached to this ordinance and incorporated into this ordinance by reference. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule as to consideration and voting upon ordinances at two Reinvestment Zane Ord - Lon C Hill 1031200B.doc regular meetings so that this ordinance is passed upon first reading as an emergency measure on this 11th day of November, 2008. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Henry Garrett Mayor, City of Corpus Christi APPROVED: November 3, 2008 R. ~ y einin First Assist t City Attorney For City Attorney Reinvestment Zone Ord - Lon C Hill 10312008.doc 2 Corpus Christi, Texas day of November, 2008 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Henry Garrett Mayor, City of Corpus Christi The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Rummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Reinvestment Zone Ord -- Lan C Hill 10312008.doc 3 O ~~ O 8 gg~ DD .;' 7p. ,sdrye" p, e / a ~9~~ ~~p~ ~"~ ~,~~, R¢ ~ ~Fy J 3¢ W yj ~~ ~S N ZOZ~ ~~ < 7 ~ ~ ~~ C W ~ ~~ ~W )~ ZZ W Z~ O~ ~ogag~ F~ ~n8~ ~~ ~W r ~~ J '~OIt~.._ ~~ '•nB``__ '"B a $ z ` i ~~~~ ~ y aa~ N I W ~~~p ~~~ a yN~ 7H ~F ~W o~~~ ~~~ <~ ~ I ?~~ ~ ~ o ~ 2 Y ~. js;W ,,..3}} SSp 6~V FS tn pp~p yr~~ S ~ NWN D~ O~ ~~1 = 2 (' ~~~ ~~ ~~~ Q ~~~H S~k -x o ~~~ ~~ ~~o w `~~~ ~~z ~ 4 8 x~ t ~ Z "' :~ ~; ,i ~~' s ~~_ ~. ;~~ ~~~ '~4~,` ads ,a. ~7n.7j Ia9' Lu O B a B a ~, yr $A { 0 Y~p '~ _ 101 r~*' F jy ~. p ~~~~ ~~ Z ~ ~~;~ p s' ~° ~, ^ ~ ,~ ~ ~ ~1 q~iq, ~ ~ •~'~. 'W~ ~ ~ ~ v,•~ ~4 ~ ~~a ~v ~' '~• thy, ~~~o r~+. ~' ~~~ - ,~ ---~ -_-"-'-•-- $ -'T~irtmxi uwox wane waxnioiade.a.r.----•-------•~- 9~° A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH LON C. HILL, L.P. PROVIDING FOR TEMPORARY PROPERTY TAX ABATEMENT WHEREAS, the Texas Property Redevelopment and Tax Abatement Act (the "Act"), Texas Tax Code, Chapter 312, as amended, authorizes the City of City of Corpus Christi, Texas (the "City") to enter into tax abatement agreements for projects meeting the guidelines and criteria for granting tax abatement duly adopted by the City; and WHEREAS, an application for temporary tax abatement has been filed with the City by Lon C. Hill, L.P. for the construction of improvements to facilities in the City; and WHEREAS, the property to be covered by the proposed tax abatement agreement is located in the city limits of the City of Corpus Christi within an area designated as a reinvestment zone eligible for property tax aba#ement under the provisions of the Act; and WHEREAS, the project is not located on property that is owned or leased by a person who is a member of the city council; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council finds and determines that the terms of the proposed agreement with Lon C. Hill, L.P., providing for temporary property tax abatement and the property subject to the proposed agreement meet the applicable guidelines and criteria, as amended, adopted by the City. The City Council further determines that the proposed project is feasible and the proposed temporary abatement of taxes will inure to the long term benefit of the City. SECTION 2. The Tax Abatement Agreement with Lon C. Hill, L.P., attached in substantial form as Exhibit A, is approved, and the City Manger is authorized to execute the agreement. Adopted at a regular meeting of the City Council on the 11th day of November, 2008. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Henry Garrett Mayor Tax Abatement Agreement Resolution - Lon C Hill 10132008.doc z APPROVED AS TO FORM: November 3, 2008 R. J eipi ig First Assistant Ci ttorney For the City Atto ey Tax Abatement Agreement Resolution - Lon C Hill 10132008.doc 2 3 Corpus Christi, Texas of November, 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hurnmell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Tax Abatement Agreement Resolution - lon C Hill t0132008.doc 3 TAX ABATEMENT AGREEMENT THE STATE OF TEXAS } } COUNTYOF NUECES } This Tax Abatement Agreement ("Agreement") is made and entered into by and between the City of Corpus Christi, Texas ("City") and Lon C. Hill, L.P., a Texas limited partnership ("Owner"), the owner of taxable property in the City of Corpus Christi, Texas, located at 3501 Caliicoate Road, Corpus Christi, Nueces County, Texas ("Property"). I. AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Texas Tax Code, Chapter 312, as amended ("Act"), and is subject to the laws of the State of Texas and the charter, ordinances, and orders of the City. II. DEFINITIONS A. As used in this Agreement, the following terms have the following meanings: 1. "Abatement" means the temporary or partial exemption from ad valorem taxes of certain added value to real and personal property in a zone designated for economic development purposes under the Act 2. "Added Value" means the increase In the assessed value of the Eligible Property as a result of "expansion" or "modernization" of an existing facility or construction of a "new facility." It does not mean or include "deferred maintenance." 3. "Base Year Value" means the assessed value of the Improvements on the Property as certified by the Nueces County Appraisal District as of the January 1 preceding the execution of this Agreement, plus the agreed upon value of Improvements made after January 1, but before the execution of this Agreement. 4. "Basic Manufacturing or Service Facility" means buildings and structures, including fixed machinery and equipment not elsewhere described, used or to be used for the production of products or services, which derive a majority of revenue from paints beyond a 50-mile radius of Nueces County. 5. "Construction Phase" means the period during which a material and substantial improvement of the Property occurs which represents a separate and distinct construction operation undertaken for the purpose of erecting the Improvements. (a) The Construction Phase ends upon the earliest to occur of the following events: Lon C. Hill - Tazes -Property - Abatement Agreementy - City of Corpus Chrisfl.doc (1) When a certificate of occupancy is issued for the project (if within City limits). (2) When commercial production of a product or provision of a service is achieved at the facility. (3) When the architect or engineer supervising construction issues a certificate of substantial completion,.or some similar instrument. (4) Two. (2) years after the date of this Agreement. (b) The determination of the end of the Construction Phase is made by the City, in its sole and absolute discretion, based upon the above criteria and the other factors as the City may deem relevant. (c) The determination of the end of the Construction Phase by the City is conclusive, and any judicial review of the determination is governed by the substantial evidence rule. 6. "Deferred Maintenance" means improvements necessary for continued operations which do not improve productivity or alter the process technology. 7. "Economic Lffe" means the number of years a property improvement is expected to be in service in a Facility. 8. "Eligible Property" means the buildings, structures, site improvements, and that office space and certain personal property necessary to the operation and administration of the Facility to be constructed under this Agreement. A list of the Eligible Property is set forth in the Project Description, which is attached to this Agreement as Exhibit A and made a part of this Agreement. During the Construction Phase of the Eligible Property, the Owner may make the change orders to the Eligible Property as are reasonably necessary to accomplish its intended use, provided that no the change order may be made which will change the qualification of the project as a "Facility" under the Guidelines and Criteria for Granting Tax Abatement approved by the City. 9. "Facility" means a Basic Manufacturing or Service Facility, as set forth in the Guidelines and Criteria for Granting Tax Abatement adopted by the City. 10. "Improvements" means the buildings, portions of buildings, and other improvements, including fixed machinery and equipment, used for commercial or industrial purposes on the Property. 11. "Ineligible Property" means land; inventories; supplies; tools; furnishings and . other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred maintenance investments; property to be rented or leased, except as provided in Section 2(c) of the Guidelines and Criteria for Granting. Tax Abatement; improvements for the transmission of electrical energy Lon C. Hill -Taxes -Property - Abatement Agn:ementy - City of corpus Christl.doc - 2 not wholly consumed by a New Facility or expansion; any improvements, including those to produce, store or distribute natural gas, fluids or gases, which are not integral to the operation of the Facility; improvements to real property which have an economic life of less than 15 years; property owned or used by the State of Texas or its political subdivisions or by any organization owned, operated, or directed by a political subdivision of the State of Texas; unless any of the above types of property are specifically authorized by the City. 12. "Modernization" means the replacement-and upgrading of existing facilities which increase the productive input or output, updates the technology or substantially lowers the unit cost of the operation, and extends the economic life of the facilities. Modernization may result from the construction, alteration or installation of buildings, structures, fixed machinery or equipment. It shall not be for the purpose of reconditioning, refurbishing, repairing or completion of deferred maintenance. 13. "New Facility" means a property previously undeveloped which is placed into service by means other than or in conjunction with an expansion or modernization. B. The Guidelines and Criteria for Granting Tax Abatement adopted by the City are incorporated as a part of this Agreement. Faccept as the guidelines and criteria are specifically modified by this Agreement, all definitions in the guidelines and criteria are _ _ ___ _ applicable to this Agreement. III. PROPERTY A. The Property is an area within the City of Corpus Christi, Texas, located in whole or in part within the jurisdiction of the City, and is more fully described in Exhibit B attached to this Agreement and made a part of this Agreement. The Property is located within a zone for tax abatement established under Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus Christi, Texas. C. The Nueces County Appraisal District has established the following values for the Property as of the January 1 valuation date prior to the date of execution of this Agreement. Account No. N305856 Land $0.00 Improvements $110.00 Account No. N305857 Land $0.00 Improvements $430.00 Lon C. Hill -Taxes -Property -Abatement Agreementy -City of Corpus Chris6.doc 3 Account No. N305858 Land $0.00 Improvements $1,370.00 Account No. N305859 Land $0.00 Improvements $152,070.00 Account No. 8230260 Land $1,852.00 Improvements $0.00 Account No. 8242340 Land $1,272.00 Improvements $0.00 __ - Account No. 8242342 Land $3,340.00 . Improvements $0.00. Account No. 8244159 Land $214,593.00 Improvements $0.00 Account No. 8367384 Land $293,587.00 Improvements $0.00 C. The City and the Owner agree that the value of any additions to the Improvements made after January 1 or not otherwise reflected on the above valuation of Improvements is: Additional improvements: $0.00 Lon C. Hill -Taxes -Property - Abatement Agreementy - Cily of Corpus Chrisd.doc 4 D. Addition of the above amount to the valuation of the Improvements as of the January 1 valuation date prior to the date of execution of this Agreement results in a Base Year Value as follows: Base Year Value: $153,980.00 IV. TERM OF ABATEMENT AND AGREEMENT A. The City agrees to abate the ad valorem taxes on the Eligible Property under this Article and Articles V and VI of this Agreement. The Abatement is effective with the January 1 valuation date immediately following the date of execution of this Agreement. The Abatementcontinues-for up to two (2) years during the period of the Construction Phase and for the next three (3) full tax years after the Construction Phase, expiring as of December3l of the third tax year. If the period of the Construction Phase exceeds two (2) years, the Facility is considered completed for purposes of Abatement, and in no case may the period of Abatement, inclusive of construction and completion exceed five (5) tax years. The years of Abatement provided in this Agreement in each instance coincide with the tax year commencing on January 1 and expiring on December 31, and in no event may the Abatement extend beyond December 31 of the fifth tax year. This Abatement also covers as Eligible Property those supplemental improvements to the Eligible Property that are added or constructed during the post-construction three (3) year period of Abatement. In no event, however, may the total Abatement period for the Eligible Property exceed the maximum five (5) year Abatement period for the entire project as specked in this Agreement. B. The term of this Agreement continues for a period of five (5) years following expiration of the abatement period. All terms and conditions imposed upon the Owner continue in effect during the period, and the Owner (s obligated specifically to continue the minimum employment levels specified in this Agreement. Any default is be subject to the provisions of Article VIII of this Agreement. C. Notwithstanding subsections (a) and (b) of this section, this Abatement Agreement is automatically extended to the extent necessary to recapture any abated taxes and secure payment by the Owner under the provisions of Section VIII. V. TAXABILITY During the period that the Abatement is effective, taxes is payable as follows: 1. The value of the land comprising the Property is fully taxable. 2. The Base Year Value of existing Improvements comprising the Property is fully taxable. 3. The value of Ineligible Property is fully taxable. 4. The Added Value of Eligible Property is abated under Article VI of this Agreement. Lon C. HIII -Taxes • Property- Abatement Agreementy-City of Corpus Chdsti.doc - r, VI. AMOUNT OF ABATEMENT A. The Abatement provided by this Agreement is based upon a Basic Manufacturing or Service Facility, which provides not less than 20 new new permanent full-time jobs and maintains the same level of employment for the term of the abatement agreement, the percentage of tax abated is under the following schedule: Percentage of Abatement Construction Period (not to exceed 2 years) 100% Yearl 50% Year 2 50% Year 3 50% Year 4 50% Year 5 50% B. In order to be counted as a permanent job under this Agreement, the job must be a, full-time position providing regular work schedules at least 35 hours per week. For compliance purposes, the determination date is January 1 of each year commencing with the January 1 following the date of completion of construction. The percentage of abatement provided each year under this Agreement is based upon the employment information as of January 1 of the year. As a result, the actual amount of abatement may vary from year to year based upon employment levels and property valuations. C. Living Wage Requirement. In order to count as a permanent full-time job under this tax abatement program, the Job should provide a "living wage" for the employee. The target living wage under this abatement program must be that annual amount equal or greater than poverty level for a family of three, established by the 2004. U.S. Department of Health and Human Services Poverty Guidelines, divided by 1820 hours: per year. D. At the time of execution of this Agreement, the Owner reasonably estimates and represents to the City that the Added Value comprising permanent Improvements upon completion of the Construction Phase is: $110,000,000.00 ("Estimated Added Value"), of which $110,000,000.00 is eligible for tax abatement. - E. In determining the Added Value for abatement under this Agreement, all types of exempt property qualifying as pollution control facilities, shall be excluded. The only Lon C. Hill -Taxes -Property • Abatement Agreementy -City of Corpus Chrisd.doc 6 property that may be included for the purposes of determining Added Value is property that will be normally taxable by the City during the term of this Agreement. F. In the event that upon completion of the Construction Phase, the Added Value of permanent Improvements, as determined by the Appraisal District, is at any time during the period of Abatement be less than eight-five percent (85%) of the Estimated Added Value, not due to circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes under this Agreement, an amount equal to the then current tax rate of the City applied to the difference between the Added Value from eighty-five percent (85%) of the Estimated Added Value, multiplied by 100%, minus the net percentage of Abatement provided under this Agreement. Far the purposes of this provision, the term "circumstances beyond the control of Owner" includes casualty losses, national economic factors, shutdowns due to governmental regulations, strikes, acts of war; and the like. G. The formula for calculating the additional tax is outlined as follows: (Tax Rate] x [(85% of Est. Added Value -Actual AV) x (100% -Abatement%)] _ Additional Tax. VII. CONTEMPLATED IMPROVEMENTS A. The contemplated improvements are set forth in the Project Description attached as Exhibit "A." During the Construction Phase, the Owner may make the change orders to the project that are reasonably necessary, provided that no the change order may be made that will change the qualification of the project as a "Facility" under the Guidelines and Criteria for Granting Tax Abatement approved by the City. All improvements must be completed under ail applicable laws, ordinances, rules or regulations. During the term of this Agreement, use of the Property is limited to operation of the Facility described in the Project Description consistent with the general purpose of encouraging development or redevelopment of the zone during the period of this Agreement. B. Owner represents and warrants that this project will add at least twenty (20) additional permanent full-time operating or contract employee following the completion of construction, and will maintain the same level of employment for the term of the abatement agreement. C. Owner represents and warrants the project is not expected to solely or primarily have the effect of transferring employment from one part of Nueces County to another. D. Owner agrees to utilize the best available, commercially feasible technology, as determined and approved by permitting actions of the Texas Commission on Environmental Quality, for any new equipment or systems installed as part of the construction of the facility that would have an impact on air quality in Nueces County, Texas. Owner further agrees to design and construct the facility so that it will comply with all existing. provisions of any and all existing water quality permits. Lon C. HIII - Tazes -Properly - Abatement Agreementy - City of Corpus Chdatl.doc 7 VIII. EVENTS OF DEFAULT AND RECAPTURE A. Failure to Commence Operation During Term ofAgreement. In the event that the Facility is not completed and does not begin operation with the minimum number of 50 permanent jobs by the January 1 following the completion of construction, no abatement is given for that tax year, and the full amount of taxes assessed against the property is due and payable for that tax year. In the event that the Owner fails to begin operation with the minimum number of 50 permanent jobs by the next January 1, then this Abatement Agreement terminates and all abated taxes during the period of construction are recaptured and must be paid within 60 days of the termination. B. Discontinuance of Operations During Term of Abatement. In the event the Facility is completed and begins operation with the required minimum number of permanent jobs, but subsequently discontinues operations or the minimum number of permanent jobs is not maintained on any January 1 during the term of the Agreement after the completion of construction, for any reason except on a temporary basis due to fire, explosion, or other casualty, accident, or natural disaster, the Agreement may be terminated by the City, and all taxes previously abated by virtue of this Agreement are recaptured and must paid within 60 days of the termination. C. Abatement Contingent Upon Total Capital Improvements. The tax abatement under this Agreement is contingent upon the Owner investing a minimum of $110,000,000 on Project, as described in Exhibit B. The Owner's failure to make the minimum investment is a default, the abated taxes must be recaptured, and the Owner shall pay any abated property taxes within 60 days of termination. D. Abatement Contingent Upon Additional New Jobs. The tax abatement under this Agreement is contingent upon the addition of at least 20 additional permanent full time jobs at the Facility, and a companion facility owned by Nueces Bay WLE, LP, that has a separate agreement with the City. The Owner's and Nueces Bay WLE, LP, failure to create the required number of additional permanent jobs at the completion of construction is a default, the abated taxes must be recaptured, and the Owner shall pay any abated property taxes within 60 days of termination. C. Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to become delinquent or fails to timely and properly follow the legal procedures for their protest or contest, this Agreement terminates and the abatement of the taxes for the calendar year of the delinquency also terminates. The total taxes assessed without abatement for that calendar year must be paid within sixty (60) days from the date of termination. Penalty and interest do not begin to accrue on the additional amount of taxes due as the result of recapture under this provision until the first day of the month following the sixty (60) day notice, at which time penalty and interest accrues under the laws of the State of Texas. Penalty and interest on the amount of taxes originally levied based upon the Abatement begin to accrue as of the date the taxes were due under the laws of the State of Texas. Lon C. HIII -Taxes -Property -Abatement Agreementy - City of Corpus Chrisd.doc 6 D. Notice of Default. Should the City determine that the Owner is in default under the terms and conditions of this Agreement, City must notify the Owner that if the default is not cured within sixty (60) days from the date of the notice ("Cure Period"), then this Agreement may be terminated. In the event the Owner fails to cure the default during the Cure Period, this Agreement maybe terminated and the taxes abated by virtue of the Agreement will be recaptured and must be paid as provided in this Agreement. E. Actual Added Value. Should the Nueces County Appraisal District determine that the total level of Added Value during any year of the term of this Agreement after completion of the Construction Phase is lower than the Estimated Added Value the that a lower percentage of Abatement is applicable, for each year during which an Abatement has been granted, the difference between the tax abated and the tax that should have been abated based upon the actual Added Value is determined by the City and must paid within 60 days of notification to the Owner of the determination. Penalty and interest does not begin to accrue upon the sum until the first day of the month following the sixty (60) day notice, at which time penalty and interest accrues under the laws of the State of Texas. F. Reduction in Rollback Tax Rate. 1. If during- any year of the period of Abatement any portion of the abated value is added to the current total value of the City, but is not treated as "new property value" (as defined in Section 26.012 (17) of the Texas Tax Code) for the purpose of establishing the "effective maintenance rate" in calculating the "rollback tax rate" under Section 26.04 (c) (2) of the Texas Tax Code and if the City's budget calculations indicate that a tax rate in excess of the "rollback tax rate" is required to fund the operations of the City for the succeeding year, then the City recaptures from the Owner a tax in an amount equal to the lesser of the following: (a) The amount of the taxes abated for that year by the City with respect to the Property. (b) The amount obtained by subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and multiplying the difference by the total assessed value of the City. 2. If the City has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated under subparagraph (b) above is prorated on the basis of the value of the abatement with respect to each taxpayer. 3. This event does not constitute a "default" under this Agreement, and the sixty (60) day Cure Period provided above does not apply. The recaptured taxes must be paid within thirty (30) days after notice of the rollback in tax rate has been, given to the Owner: Penalty and interest do not begin to accrue upon the sum Lon C. Hill -Taxes -Property -Abatement Agreementy • Ctty of Corpus ChdsL.doc 9 until the first day of the month following the thirty (30) day notice, at which time penalty and interest accrue under the laws of the State of Texas. G. Continuation of Tax Lien. The amount of tax abated each year under the terms of this Agreement is secured by a first and prior tax lien, which continue in existence from year to year until the time as this Agreement between the City and Owner is fully performed by Owner, or until all taxes, whether assessed or recaptured, are paid in full. H. City Council Reserves Right to Terminate of Modify Agreement. In the event of any default by Owner, the City Council reserves the right to terminate or modify this Agreement. I. Owner's right to appeal. 1. Owner must be afforded written notice of the default and the opportunity to cure as provided above. 2. If Owner believes the action was improper, Owner may file an appeal in Nueces County district court within sixty (60) days after written notice of the action by the City. 3. Owner shall remit to the City, within the 60-day period, any additional or recaptured taxes levied under the payment provisions of Texas Tax Code § __ 42.08. 4. If the final determination of the appeal increases Owner's tax liability above the amount paid, Owner shall remit the additional tax under Tax Code § 42.42. 5. If the final determination of the appeal decreases Owner's tax liability, the City wilt refund the Owner the difference between the amount of tax paid and the amount of tax for which Owner is liable under Tax Code § 42.43. IX. ADMINISTRATION A. Inspections. The Owner shall allow employees and/or representatives of the City to have access to the Property during the term of this Agreement to inspect the Facility to determine compliance with the terms and conditions of this Agreement. All inspections will be made only after the giving of twenty-four (24) hours prior notice, and conducted in the manner as to not unreasonably interfere with the construction or operation of the Facility. All inspections must be made with one or more representatives of the Owner and under Owner's safety standards. B. Appraisals. 1. The Chief Appraiser of the Nueces County Appraisal District annually determines: Lon C. Hill -Taxes -Property - Abatement Agreemenry - Clry of corpus Chrlsd.doc .~ 0 (a) The taxable value of the real and personal property comprising the Property taking into consideration the Abatement provided by this Agreement. (b) The full taxable value without Abatement of the real and personal property comprising the Property. 2. The Chief Appraiser records both the abated taxable value and the full taxable value in the appraisal records. 3. The full taxable value figure listed in the appraisal records is used to compute the amount of abated taxes that are required to be recaptured and paid in the event this Agreement is terminated in a manner that results in recapture. 4. Each year the Owner shall furnish the Chief Appraiser with the information outlined in Chapter 22, Texas Tax Code, as amended, as may be necessary for the administration of the Agreement specified in this Agreement. C. Annual Reports. 1. Owner shall certify to the governing body of the City on or before April 1 each year that the Owner is in compliance with each applicable term of this Agreement. 2. Additionally, during the initial four years of the term of property tax abatement, Owner shall provide to the City an annual report covering those items listed on Schedule I attached to this Agreement in order to document the efforts of the Owner to acquire goods and services on a local basis. 3. The annual report is prepared on a calendar year basis and is submitted to the City no later than ninety (90) days following the end of each the calendar year. 4. The annual report is accompanied by an audit letter prepared by an independent accounting firm which has reviewed the report. 5. The copies of the four prior quarterly IRS 941 returns must be provided to verify employment D. "Buy Local" Provision. 1. The Owner shall give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacr'rfice in operating efficiency. •• 2. In the case of an exception involving a purchase over $10,000.00, the justification for the purchase must be included in the annual report. Lon C. HIII -Taxes -Property -Abatement Agreemenly - City of Corpus Chrisli.doc 11 3. The Owner further acknowledges that it is a legal and moral obligation of persons receiving property tax abatements to favor local manufacturers, suppliers, contractors, and labor, all other factors being equal. 4. For the purposes of this provision, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office in either Nueces County or San Patricio County. 5. In the event of a breach of the buy local provision, the percentage of abatement is proportionately reduced - to the amount the disqualified contract bears to the total construction cost for the project. X. ASSIGNMENT A. The Owner may assign this Agreement to any one or more corporation(s), 50% or more of the outstanding voting securities of which are owned, directly or indirectly, by one of the Owners, or any partnership(s) or limited partnership(s) in which an Owner, or a subsidiary of an Owner, is a general partner. B. The Owner may assign this Agreement to any other new owner or lessee of the Facility with the prior written consent of the City, which consent may not be unreasonably withheld.. C. Any assignment must provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor and become the Owner upon the same terms and conditions as set out in this Agreement. D. In the event more than one entity is Owner under this Agreement, the obligations of the entities is joint and several. E. Any assignment of this Agreement is to an entity that must provide substantially the same improvements to the Property, except to the extent the improvements have been completed. F. No assignment is approved if the Owner or any assignee is indebted to the City for ad valorem taxes or other obligations. XI. NOTICES A. Any notice required to be given under the provisions of this Agreement must be in writing and are duly served when deposited, with the proper postage prepaid, and registered or certified, return receipt requested, with the United States Postal Service, addressed to the City or Owner at the addresses listed below. - B. If mailed, any notice or communication is deemed to be received three days after the date of deposit in the United States Mail. Unless otherwise provided in this Agreement, all notices is delivered to the following addresses: Lon c. F1ill -Taxes .Property - Abatement Agreementy -City of Corpus Christi.doc .~ 2 To the City: CITY OF CORPUS CHRISTI 1201 Leopard Street P. 0. Box 9277 Corpus Christi, Texas 78469 Attn: City Manager To the Owner: LON C. HILL, L.P. 3355 West Alabama, Suite 500 Houston, TX 77098 Attn: Vice President for Project Development C. Either party may designate a different address by giving the other party ten days" written notice. This Agreement has been executed by the parties in multiple originals or counterparts, each having full force and effect. Executed this _ day of , 2008. ATTEST: __ _ By: Armando Chapa City Secretary APPROVED AS TO FORM: CITY OF CORPUS CHRISTI, TEXAS __ _ -__ - BY~ 'Angel R. Escobar Interim City Manager By: R. Jay Reining First Assistant City Attorney For City Attorney OWNER: LON C. HILL, L.P. By: NuCoastal Power Group GP, LLC Its General Partner By: ~' Roy J.., `art President NuCoastal Power Group GP, -LLC Attorney-in-Fact For Lon C. Hill, L.P. Lon C. Hql - Tazes -Property - Abatement Agreementy - Gty of Corpus Chdsti.doc 13 ACKNOWLEDGMENT STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS COUNTY OF ~ i• r=~.i ~ § This instrument was acknowledged before me on ___ /.`tai e.V;~ L«>,2., ~ , 2008, by Roy J. Hart, President, NuCoastal Power Group GP, LLC, a Texas limited liability . company, General Partner, Lon C. Hill, L.P., a Texas limited partnership, as Attorney-in- Fact, on behalf of the partnership. "~(2qN q°~~~ 0 om ~~ r, ~- ~y _y ,c OF t6'I' ~~ ,-~ ~ ~~ ,~ NOTARY PUBLIC, State of Texas Lon C. Hill -Taxes -Property - Abatement Agreemenry - Ciry of Coryue ChdaU.doc 14 SCHEDULE 1 "Buy Local" Annual Reports The following information is reported to the City on acalendar-year basis during the first -four years of the tax abatement program: 1. Dollar amount spent for materials* (local). 2. Dollar amount spent for materials (total). 3. Dollar amount spent for labor** (local). 4. Dollar amount spent for labor** (total). 5. Number of jobs created in the construction project (local). 6. Number of jobs created in the construction project (total). 7. Number of jobs created on a permanent basis (local). 8. Number ofjobs created on a permanent basis (total). * "Materials" are defined to include all materials used in excavation, site improvement, demolition, concrete, structural steel, fire proofing, piping, electrical, instruments, paintings and scaffolding, insulation, temporary construction facilities, supplies, equipment rental in construction, small tools and consumables. This term does not include major items of machinery and equipment not readily-available locally. ** "Labor" is defined to include all labor in connection with the excavation, site improvement, demolition, concrete construction, structural steel, fire proofing, equipment placement, piping, electrical, instruments, painting and scaffolding, insulation, construction services, craft benefits, payroll burdens, and related labor expenses. This term does not include engineering services in connection with the project design. The term "local" as used to describe manufacturers, suppliers,. contractors and labor shall include firms, businesses, and persons who reside in or maintain an office in either Nueces County or San Patricio County. Lon C. Hill -Taxes -Property - Abatement Agreementy - Cily of Corpus Christi.doc 15 EXHIBIT A NUCOASTAL POWER REQUEST FOR ABATEMENT LON C. HILL REPOWERING PROJECT Lon C. Hill , LLC is proposing to design, construct, startup and operate the repowered Lon C. Hill power station. The engineering /construction phase of the project is scheduled to commence in the late third quarter of 2008. The power plant is currently owned by Lon C. Hill, LP, a wholly held subsidiary of NuCoastal Power Corporation. E:\Tex Abatement form L.tbc The Lon C. Hill repowering project will utilize several atieting wmponmts (the main components to be ro-used will be the slam turbine sad one cooling tower) sad add a highly efficient and eavirotrmentallybmign combustion turbine Bring natural gas that will feed hot gas to m unfired boiler (Hat Recovery Steam Generator or `HR3G'). The ~tY will generate about 300 megawatts of power, which is about enough to provide power for the entire city of Corpna Christi. This plant will export its power into tl-e Electric Reliability Cotmtal of Texas (ERGOT) grid thereby helping to ease the forecasted increases in demand of elatric gaertrtion in the region . This project will help alleviate anticipated power sltortagea in the region and will provide sigtificant inveslmat of capital during the oonshudion and long-tens operating periods of We aeility. The repowered plant will utilize existing components of the facility when economically feasible. A new energy efficient wmbustion turbine and Hat Recovery Steam Generator will be added to We existing components of the plant, as noted in the diagram below. U lsi ;e fP;l a• )pihi]:T-(i VIl: P, e.ai r; c +i' <.;as Torb~n:c-ii CU:raau - 1~]R.SG ~rl.'3~kD fr i„+iS I S~XI>t\'g; (; I ?; I~I. 3. I-x.712 +~!~I~7!iF IIRAi'i The period b eopioxr nod eomtruedon this tlciliry will 6e about t5 month from Burt ro fiaiah. There will be about 300 cormata;Goa perwmel n the peak of wnswction and more than tiny enyinxra will tre eagloyed duria; the design phase of de projat E~TuI Aeu~mmr arm ladoe stone local content .will be included in this undertaking. 7v Industrial of Corqu Christi will be providioj bout ea;iaeain` and eottstrttction xrvices. Bay Limited wi0 provide ttmportatioo for large eomponenb ~ Proe prefabricadoa Hndley Mown will rebur7d all existio; moron fir the facility. DwirtY the steady stae opewtioa of the facility, about 22 Ions-term positions will be created. These positions will require skilled ksbor w fill diem and will be well-payin; joM. Nut.oawl Power will spend about St25 Million on PmJec4 inc(rtdiag building, materials, «pripment (bolt new and repu• of existia~, eegioemioQ, oorotrttction and financing. The new fieihty, upon the contpktion of comtrttctioq will look like this: E:ULt Aeatamga Kral 1LdeC CDS/Nli~ SExv~~.s Engineering ~ Surveytng Asl! 9',La1S 4aetaTaat. t:otlnaNs (ty[/A C~4NAL s'ONRA AND LIGHS CON>'AN!) Lan c. esrl..saaa~ sLntT sslea >'iOECia COONTS, 'fBHAs 49.562 AtFS E9O1ID71R2 SaRVEI It>~t! A-1 BSIIIG a 49.562 acre tract of land lying fa the Gcegorio Ferias Survey, abatraet no. 592, Nwoss t:onnty, Taxes, saga being s portion of the Lon C. hill subdiviaioa Onit 1 as recorded is volnas 34, page 103, tiap Ratords of Nwcea County, Taxaa, all of a 0.4629 of an acre tract of land as deaetibad Sn volume 1964, page X17, Deed Records of Nueoes County, 7axas sad a portion oP a 37.85 sere tract o! land as deaeribsd is volume 377, page 396. Dead tteeords of Nuacaa dounty; Taxes, also being described by h drawing (101194 30-LON H1LL DNYT kA.DNG ~ tRIIT 1H.Dt0G, dated October 2~ 2003) attached hereto as Exhibit M-2 and made a part horaof and being Dora particularly described as follows: C01lOA1CIN6 at a 4"x 4" nonerata swausw;t round marking the south corner of the afosesutntioned Lan C. Nf11 Subdivisioa Dnit 1, sam lying sc the iatezdsetioa of the sontbwest line of ehe afosemeatioaed ]7.BS acre tract sad the northwest right-ot-way line of F. K. Highway 1691 (Gllicoatte Road) (90.00 foot wide Tighe-of-way et this pointl as described in volume 659, page 193, Deed Records of Nuecea County, Texas; T>CSNCS leaving the said southwest line of the aforementioned 37.95 aete• tract, along. a southeast line of the aforementioned Lon C. Rill Subdivision Unit 1 and the said Dorthweat .right-of-sway line o! the aforemoatioaed F. !4. Highway 1694, N75•lS'3B"8 a diseanee of 1263.C2 feet lReeard - N36"45'00"H) to a 1/2" iron rod set with plastic cap ataopad ^CDS/NDERY S.A. TX."r Tlm-eH leaving the said southeast line of the aforementioned Lon C. Rill Subdivision Unit 1 and the said northwest sight-of-way line of the aforementioned £. N. Highway 1691, 554.00'00"B a distance of 59.00 feet to a.point in a aoutheatlt lino of the aforementioned 37.85 acre tract for the 1•LACt! OP etcna>ala and being the most eaatetly south corner of the herein described 49.562 acre trace; TH'aNCE leaving the said southeast line of the: aforementioned 37.85 acre tract, N51.00'0O"W a distance of 1002.15 fact to a 1/2• iron sod sat with plastic cap stamped "'COS/ltgtiRY S.A. TX." for an interior corner of the herein described 49.562 acre tractr T'HENC6 536.00.00"N a distance of 145.50-feet to a 1/2" iron rod set with plastic cap stamped ^CDS/NOERY S.A. TX.^ for the most westerly south corner of the herein described 49.562'aere tract] Page 1 OF 4 18~4.lad eicFabaz 2, 2oOD }itlafa6ieDdve,$aaAaton(o,Temt781?4 Td 3f 0.581-till Faa210-5t1t-5555 ASP T>aR3 C coeolaEY (TJE/A CBiTlRAL POIIER ]1~ LZ68T CODO?lN!) I,ODT C. RZLL PO11RE PiAN'1' 8ZlE 9R1ECE9 COO}RY" TEiAB 49.SC3 ACRE 8C17MDAR! SUAVii TSEeC6 M54.00'00"W a distance of 771.90 feet to a 1/2" iron rod set with plastic tap atssped "COS/NUSRY S.A. TX.• is the west. line 'of the afosassa-tioa4d Lon C. 8111 8ubdivisioa Unit 1 sad the tact right-of-way line of the Union Pacilie Aailrosd (100 foot wide sight-ol-ray) for as angle comer o! the herein described 49.562 acre tract; Ts~IG7 along the said veal line of the aforementioned Loa C. 8111 S?ubdivisioa Uait i and the safd oast right-of-vay line of eha aforsmeasioaed Uniaa IIacific 8ailroid, i01.23'a0•E a distance of 780.49 feet (Record - 8I02.2o'30•E) to a 1/2• iron tnd set with plsseie.eap stamped "(,'DB/MI}BRY S.A. TY.• iR the aouthrest right-of-way line Ot Hearn Road (varying width sight-of-way at Chia point) for the northwest corner of tiu heroin described 49.562 acre tract, same being the southwest corner of a 0.0166 of an acre tract of load as deseribad in volume 944, page 458, Deed'Records of ttusces County, Texas; T8>aIC6 along the said sotttbweat right-ot-way line of the aloraseationed -Hearn Goad sad the southrsst line of the aforementioaad 0.0166 0! an acre tract, an arc distance of 112.44 feet along a turn to the right having , a radius of 370.00 feet, a central angle of 17.24'44" and a chord which bears S62.42'34"E'a distance of 132.01 fete, to a 1-1/4• isoa pipe found marking the east earner of the said 0.0166 of m ecre tract sad a point of eaageacyi T»lCi along Che said aouthvest-and the southeast right-of-way lines of the aEord4mCioned Beasa Road (60.D0 fooC rids right-of-way), a northeast end the northwest linos oL the. aforementioned Loa C. Bill Subdivision Unit 1, and the northwest line of the aforementioned 0.4629 of as acrn track the following five (5) courses: S54•tlo'12"S a dietaace of 302.91 feat (Retard - S53.00'00"EI Co a 1-1/i• iron pipe found for a point of cuzvacure; an arc dietaace o£ 212.90 feet along a curve to Che left having a radius of 389.07 feet., a central angle of 54.31'00° and a c3:ozd which boars $e6.15'42•S a distance of 201.93 feet, Co a 1/2" iron rod set with plastic cap stamped "CDS/M[7SRY s.A. TX." for a point of tangency N61'2B'4B"E a distance of 561.20 feet (Record N62.26'OO"E} to a 1/2" iron rod. set with plaeCic tap stamped •mS/MUERY S-A. TX." fox a point of curvature; Yage 2 OF 4 L934.fad October 2 2003 3411 Drrn,SaaAsmmo,Tens78I29 Te1:210.591-lilt Fmc3l0.581.5355 AS7? r$a~9 , COi0ta1Z (P/E/a, Ca111'AAL POR74i A!ID 1SGMT CdaO'aNT) 7:oT C. aSLL lORDI PL1HT $1T1 2i01a8 LXaAii'!, T1aL4 48.562 ACJIL BO~ASL 6yRV1l an sre,distance of 178.92 last along a ensue to the Lett having a radius of 411.97 test, a esatsal eagle of 24.53'00" and a chord which bears Y19.02'1B"E a distance of 177.51 lest, to a 1/2" isoo rod sat with plastic sap ataaped "CDS/NOEAY 9.A. T7(." for s point oL tangency; 136.35'19"8 a distance o! 721.54 feet (Record - 137.33.00"E 696.62' e 137.29'20"E 65.0') to a 7/8• bolt lound is the sonehwast line of a 7.063 acre tract o! land as eleacribed in volume 2102, page 716, Dead Records of losoea County, Tesas for the north corner oL the aforemantionsd O.{629 of an acre tract and the north corner of the herein described {9.562 acre tracts T10'.kTCE leaving the asid southeast right-of-way line of the aforementioned Haarm Road, along the oortheaat lino o! the aloremeotioned 0.4629 of an acre tract and the said southwest lint of the aforementioned 7.063 acre tract, 853.59'37•E a distance: of 310.35 feat (Record - a53.00'S0"E 310.23') to a 7/B" halt found marking the east comer o! the said 0.1629 o! an aere.tract and the south corner of the said 7.063 sere tract, name lying in a northwest line o! the aforementlonad Lon C. Hill Subdivision Onic 1: 'r86NCE leaving the latter said northwest line oP the aforementioned Lon C. Hill Subdivision Onit 1, S53'59'37•a a distance of 316.98 last to a 1/2" iron rod eat xith plaaeic cap steeped •C'DS/1D1RY S.A. T7C."' for the mode northerly east corner of the hesain described 49.562 acre tract; 'i'a7Ak1 636.00'00"w s dlataaca of 1W7.96 feat to a 1/2• iron rod net with plastic sap stamped "CD9/NDERY S.A. TX." for au interior corner of the herein described 49.562 acrd [sect; TSEICE 559°00'00"E, passing a 1/2" iron rod set wttb plastic cap stamped "cDS/10ERY S.A, TX." i.n the asid southeast line of the aforementioned Jron C. Hill Subdivislon Onit 1 and tae 'said northwest right-of-way line of the aforementioned F. M. Highway 1694 at a -distance of 656.52 feet, a• total distance of 715.52 feet to a paint in rho asid southeast lice of the aforasa'otioned 37.65 acre tract for the moat southerly east corner of the herein described 49.562 acre tract: Pays 8 OP 4 la3{,tad 11EP TEa1S C9i~lAL ODIRAMS V/3;/A CENTAAi. POIIBR >1ND LTCSr COIO:AN!) Y.ON C. BILL POIDlR PLANT SIlB MDBCLa COONRl~ ?Jm1a ~l.862 11088 3)OOamARI 501tVL2' TB~ICE along the said southeast line of the aformentionad 37.85 acre tract, 535.48'38"N a distance oP 390.56 lest (eaeord - 838.23'W ixDOT) to the PLACB OP 8B6IIOPI1f6 and eontainiag 49.562 acres of land of whieL 0.529 0! aR acre lies within tha limits of the afore^wntioned F. H. Highway 1694. 2ha bearing basis !oi this survey ie Girid North, Texar State Plane Coeedinate bystem, South Zone, NAD 2983. ran ar1-x¢ aP Tm-S x X MORN TO ALL N~ 1st raLSE PREaBNTS: COIINTI OP 8ExAR E i, John T. Kubala, a Registered Professional Land Suzveyor, do hereby certily that the above field notes were psepared using inlozostion obtained by an on the ground suzvay wads under ary direceion and supervision in January thzu Novesibez, 2002 snd Juiy, 2003. Date Z~ day of whet , 2003, A. D. n T. K la '- egiatered Professional Land Snrveyoz No. 4905 -Stara o! Texas P+a9a 4 OF 4 183{.lwd oelebes 2. CDS/NL~,~S~xvrs~s EnBineertag ~ Surveying c~PrAay ro~ma A~imY rscer ~,yN(() faN C. Bzt.L POMB$ PLAaT SITS Rastas oomnz, as:as l6.9~1 ACAS gpp~l-g= gpapg Bt8I8IT A-3 7H17A6 a 36.991 acre tract of lead lying is the Gragorio Far;ay abstract no. 592, Huecea County, Teuae, SAY. Subdivision Vait 2 as racosdad to 'valyga~~ all of Cbe Lon C. Hill Nueces County, Texas, all of Lot 2. Black ~ lp o a 41, M°p R°C0~° of Subdivision sa recorded in volume l7, page 45, Map~~oLda oAddttion Cooney, Texas, and all of Lot 1 of the Ream Addition Annex Subdivision as recorded in volume 28, page 97, Map Records of Nueees Count alto being described by a drawing (101149 10-LpN gay VAST October 2, 2003) attached Y. Texas, sad bni hereto as Exhibit A-4 ~ a•DAG,-dated n9 more partieu7,arly described ere toliws,~ made a part hereof ~ PaciticlAailroad 0100 foot ~ iha•east sight-of-way line of corner of the aforementioned Lon c. RilTesuight-ot-way) for the north corner of a 1.6 acre tract of Land as descr bdivas3oa Unit 2, the west Deed Records of Nueces CountY~ Texas and the eo tr h oorner5of• Page 585,. described 36.991 acre tracts the here-n ~TCS leaving the said east right-of-way line o! the alosemeationed union PaMfic Railroad, along the northease lice oP the atoremeationad Loa C. Hill Subdivision Obit 2, the oortheuG lice of the aforemeatfoasd Lot 2, the southwea[ line of the aforementioned 1.6 acre southwest lino of an 18.87 acre tract of land as described 1996017928, Official Records of Nueces Cb tract, a of a 1.z8 acre tract of land as described~ny„ol~s'S46 in document Records of Nueces Count T the eouthweat lire of land ere described Y, ~IIS' a~ a southwest line oP a 30~ 370, Deed County. Texas. 553.59 ~ 05"8, 1~ 771, Pa/ge 325, Deed Records p~ trBCt west corner of the said 30 acrestract and^the soothe found marking the 1.28 acxe tract at a diatWice of 1012.09 feet eorber of 1280.37 feet (Record.- S53.00'00^8 1192.25 a total distance aof iron rod set with plastic ca ~ 552 59'8 90.00 0 to a 1/2" cower of the said Lot 2 p stamped •~DS/MUERY S.A. TX.• for the ease sloramentioned Hearer AddieiM~ S~hdi~vision, BaemraoE Lot 1, Block 1 of the east earner of the herein descr being the moat northerly ibed 36.941 acre tract; Page 1 OP 1 1~72.fnd aaF TADiS caN'rRU CHAR! ($/Rh-/ ca+ssRay Fc+m~ ,ua~ Isar Eas~,(xY) IAN C. EIIS FCNEA PLANT SITE M7ECE8 COONTf, T8~4 36.941 t1CRE 8p0eIDaRS aOAVES 1'RENGE along the common line of the aforementioned Lots 1 and 2 of 81ack distance ola153.95 feet (Reco da Add ;tion Subdivision, 838.OS'SS"W e set wlCh pleatle cap s - 837 31 R 153.9t') to a 1/2" iron rod 8iekham Read for the soutath~odo ~~ 8'~' ~•~ in the north,liae of the said Lot 1 and the south toes o! the acid Loe 2, the cast coraar of tsactt sues o! the herein described 36.911 acre north !line o!h a aforementioned Biehs aforementioned Lot 2 sad the said 90.00 leer (Record - E52.59'W khan Road, N53 51'05"1) s distance of line of the aforementioned Loa C a 3/1 iron pipe found to a sonthsaat corner of the said Loe 2. the aoreh ~snerboivision bait 2 for the went an interior corner of the Herein described 36.941 ~~~ t=eCya,1° Road and THENCE along the said southeast line of the aforementioned Lon C. Rill Subdivision Onit 2 and the northwest line o! the aforamsatioaed 8ickhap Road, 836.05'55"W a distance of 50.00 feet (Record 837.31'00"W) to e• interioracoxnereo! eha sa dt yenaC. BiBybdiBVia~OaY 9.A. TX." for as __ corner of the acid 8ickham Road and an interior Corneriof2thehhereir. described 36.941 acre tract; TRENtB along the north line of•the aforeoentionad Lon C. Hill Subdivision Unit 2 sad the south line of the aforementioned Bickham Bond the following three (3) courses: 853°52'19"E a distance of 115.99 feet (Becord - 553.00'00•E 116.!0') to a 1/2" iron rod set with plastic cap stamped "CD8/NOBRY S.A. ~(,• for as interior angie'cerner of the herein deaezibed 36.9!1 acre tzactj N81•ZI'37•E a distance of 215.60 feet (Record - 882.15'00"E.Z18.~0') for an angle rnereof the herein descrih~ado36~.911/a~aeAeYt=act TX." 85]•54'05"E a distance of 79.71 feet (Record- S53•DO'00"E 50.30') to a 1/2" iron'rod net with plastic cap stamped "CDS/MDERY S.A. TX." in she northwest .right-of-way line pf Heats Road (60 loot wfde .right-of-way) for the Host aoutl'er1Y east comes of the aforementioned Lon C. Rill Subdivision Onit 2 sad the post southerly east corner of the herein described 36.911 acre-tract; TaarNCS along a .southeast line -and the southwest line of the aforementioned Lon C. Rill Subdivision ()nit 2 and the northwest and northeast rightrof-way lioea of the aforementioned Hearn Boad, the following flue (5) courses: BaBa 2 OF 15'92.lnd L~aoraND Lscar ca~~ foe c. HILL potaR PLaeT szre e0eC68 COOei7, T~OL4 96.941 ACRE e0DND4gt= gpgpyY 536.35'48"e a distance of 605.90 feet (Record - 337.33'00"Y 606.60') to a 1/Z• iron rod set with plastic tap atampad ^COS/ttOgRY 9.A. TX." Fora point of curvatures as ere distance of 152.86 fast sloop a c:tzve to the right having a radius of 351.9 feat, a central angle of 24.53'00", and a chord which besra 349 02 10"e a distance o! 151.66 feet, to d 1/2^ iton rod sat with plastic cap stamped CDS/HOP,RY S.A. TX." for a point o! ungancy; 361.28'48"g a distance of 561.20 feet tsecoM - 862.26'00•e) eo a 1/2" iron rod see with plastic tap aea~ed ^CD3/N08RY S.A. T;~," for a point o! ourvature-, an arc distance of 145.34 feet along a curve to Che right having a radios of 129.07 feet, a central angle of 64.31'OD", and .a chord which bears NB6•lg~g2•e a dialanca of 137,70 fact, to a T/2" iron rod sot with plastic cap stamped "CO8/HOERY 8.A. Tlt," !or a point o! tangency: - - - -- N54.00'12`e a distance of 297.A2 feet tAacotd - N53°00'00"q 297.s2•y to a S/8• iron rod found marking the aenthwest angle cornet of the aforementioned Lon C, Hill Subdivision Dnit 2 and the south Corner of the $forementioned Lot Tot the Hearn Addition Annex Subdivision; TBReCE along the southwest line of the aforeaxntioned Lot 1-oF the Hearn Additicn Annex Suhdivialon and the said nortiieaat right-ol-way line of the aforementioned Hearn Road the Following two t2) cautaet: N5/°00'12"N a distance of 114.94 feet (Record - N53.09'30"N 114.24') to a 1/2" iron rod set with plastic cap at for an angle point; moped CDS/HD~y g.A. TX, •' ' N33'll'28"e a distance of 78.30 feet (Record - N32.29'30"N 77.83') to a 5/8• iron sod found in the said seat right-of-way line'of the aforementioneA Onion Pacific Railroad for an angle corner of the angle conrnereof the her in describedi36~941~~re tcacttsian astd an T~N~ along the west line of the aforeaentioned Lot 1 of the Rearn Addition Aonex Subdivlaiop and the said east right-of-way 11,;u o! tLa aForamantioned Dnion Pacific Railroad, 1T01'23'00"g a distance of 199.19 feat eRacord - N02.20'E 200,0') to a 3/1"' pipe Found marking the west corner of the said Lot T of the Hearn Addition Annex.gubdivision and the southwest corner of the aforementioned Loa C. Hill subdivision Dnit 2; Pogo 9 OP 4 1s92.tnd AEP t'E=aS CENTRAL COID?AlTr (F/EJA/ C3:ATAAL POWER 11LID iS68? COWPANZ) i4T C. 9I7.L. POWER PI.awT SITE W08CE8 COON!'Z, 'PE1018 . 36,991 11CRG 800W091RT SOAVEY alaaq the west line of the aforeoeationad Lon C. 9111 Subdiriaion Dnit 2 and the said east rigbt-of-vay lies of the aforementioned Anion Pacific Railroad, the following three (3) courses: NOl•23'00"E a distance of 199.19 feet (Record - N02.20'30"E 152.39') cos 1/2" iron rod see with plastic cap stamped •CDS for a point of curvature; /h10ERY S.A. TX. as arc distaace of 933.99 teat along a curve to the right loving a radina of 2515.00 Laet, a eential aagie o! 19.00'00", and a chord which bears N10 53 OD E a distance of 929.22 leer, to a 1/2" iron rod sa~~ plastic cap steeped 'C09/NDEAY S.A. T'X." for a point of un N20°23'00^E a distance of 238.Bb #aee (Record - N21°20'30"E 235.76') to the PLACE oF.BB6iNNa,}G and eontainiaq 36.991 acres of land. The beazinq basis for this survey is Grid North, Texas State •Plane Cootdfaate System, South Lone, Nap 1983. _. - __ ~ ware of smo-.s X - - E 1ClOWN ra ALL tEli BY TRESE PR8S@iTa: COONTY OF HEiOIR X i, John T. Kubala, a Registered Professional, Land surveyor, do hereby certify that the above Lield notes were prepared using infozsation obtained by an on the giound survey made under my direction and supervision fn January thru November, 2002 and July, 2003. Date 2~ day of C~.rn[at 2003, A.. D. y~~~ i~nn a. a ~Regiaterad Professional Land Surveyor No. 9505 -state of Texas Page 4 OP 4 3E32.fnd ZOp9 EXHIBIT B TAX ABATEMENT AGREEMENT - Lon C Hill 10132008 1 .~ 7 w z os o f~ k b ~S"~ Z°~ ~N' z 2 y 3 Q ~~~ ~~ w =~~o ~~~ ~ ~ ° ~a~° 0~2 rc`, 1 =~ s ~/ '' ~. a~ ~~ e. 7 Ct' 5 ~ ~$g~ ~~p9 _ ~ ,Sy - - -~ ~,r g -- o~'~+ P6. ~rr~ ~ yo F'd3v E! ~~ b•~ e B~pZ ~'~/ d° ~~'~ is c~~i q ~~ye ~ ~~~ ~~dS! Yt oF~iy~e y J a~~t ~ f tl Q ~A pfi ~ A R Y j p~~r ~~ a~l~~~ ~~ ~ ~ ~~Y~ ~~~~ d~> ~~, ! ~~, \~ \` \, { ~b8.~\.\. ~ Y L~ ~. ~'1ry ~,~ ~! sum ~! ~, L ~ ~ ~~ ~i 0 ~~ ~ ~s W N N~= ~N~ ~ Z~ O2 ~; ~ ~~ 8g ~n ~ ~ ~ = SE ~ ~ W ~ ~ ~~ ~~ ~ ay, a~ ~~N J lY~t a`,;;~ r F ~ p r`*`~ ~~~ ~~~~~` *~ ~~4 Y3 ~g ~~~ ~~ a ~. d~! ~. ~~ e~ N~ a ~~.x.~ F N A ~~~~ ~Y ~ ~ ~~~a 0 ~5~ d ~r~ ~6 ~~o ~ ~v + C N 2 m ~aj ~` 4gPpod` ~ 4V ~~ ~~ ~e ~~ ~~ z~ ~~ 23 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution authorizing the execution of an agreement with Metropolis Lofts, LLC providing for temporary property tax abatement. ISSUE: To assist in the attraction of long -term investment and the establishment of new jobs in Corpus Christi to enhance the City's economic base. PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends approval to grant a temporary property tax abatement agreement to Metropolis Lofts, LLC for a minimum capital investment of $ million. Irma Caballero Director of Economic Development —219— BACKGROUND INFORMATION Metropolis Lofts, LLC has purchased the "old" Lichtenstein building for the purposes of renovation. The Metropolis Lofts project is an adaptive re -use of the famous and iconic Lichtenstein's Department Store. Located at the corner of Chaparral and Lawrence Streets, Lichtenstein's was a bustling center of activity and commerce in downtown Corpus Christi in the 1040's and 50's. The introduction of the Metropolis Lofts into the downtown follows in the ideals of urban renewal and adaptive reuse. Revitalizing the former Lichtenstein department store, the Metropolis Lofts reinvigorates the area with a new populus and creates new retail and entertainment destinations. The project will be a mixed -used development which will include residential apartments over commercial retail. Located in the heart of the downtown entertainment district the features will include: • Retail stores on the first level • Two blocks from the Bayfront and City Marina • Business Center and Conference Room • Metro Gym, endurance fitness center • Sky Deck, with floating pool and cabanas • Convenient residential garage parking • Two elevators • Available storage units • Community Lounge and game room • Corporate and short-term specialty leasing available In accordance with the City's Tax Abatement Guidelines and Criteria, the Metropolis Lofts is seeking tax abatement under the Central Business District (CBD) Residential Facilities criteria. The CBD provides that for a residential facility, the percentage of tax abated will not exceed 7 years at 100 %, including 2 years for construction period. Since the CBD residential facilities are residential multi - family housing, the job creation requirement is waived provided that no more than 20% of the cross floor area of the facility_ is utilized for non - housing purposes. The Tax Abatement Guidelines and Criteria require that for rehabilitation projects, the project must involve a minimum added value of $250,000 not to exceed $5 million. Metropolis Lofts has requested a variance on this criteria as the total capital investment of the project is expected to a minimum of $9,000,000. The redevelopment of the "old" Lichtenstein building will assist with the revitalization of the downtown area as well as support the efforts of a downtown plan as a council goal. —220— ftsx sss, A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH METROPOLIS LOFTS, LLC, PROVIDING FOR TEMPORARY PROPERTY TAX ABATEMENT WHEREAS, the Texas Property Redevelopment and Tax Abatement Act (the "Act "), Texas Tax Code, Chapter 312, as amended, authorizes the City of City of Corpus Christi, Texas (the "City ") to enter into tax abatement agreements for projects meeting the guidelines and criteria for granting tax abatement duly adopted by the City; and WHEREAS, an application for temporary tax abatement has been filed with the City by Metropolis Lofts, LLC, for the construction of improvements to facilities in the City; and WHEREAS, the property to be covered by the proposed tax abatement agreement is located in the city limits of the City of Corpus Christi within an area designated as a reinvestment zone eligible for property tax abatement under the provisions of the Act; and WHEREAS, the project is not located on property that is owned or leased by a person who is a member of the city council; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council finds and determines that the terms of the proposed agreement with Metropolis Lofts, LLC, providing for temporary property tax abatement and the property subject to the proposed agreement meet the applicable guidelines and criteria, as amended, adopted by the City. The City Council further determines that the proposed project is feasible and the proposed temporary abatement of taxes will inure to the long term benefit of the City. SECTION 2. The Tax Abatement Agreement with Metropolis Lofts, LLC, attached in substantial form as Exhibit A, is approved, and the City Manger is authorized to execute the agreement. Adopted at a regular meeting of the City Council on the 11th day of November, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor Tax Abatement Agreement Resolution -- Metropolis Lofts 10272008.doc -229- APPROVED AS TO FORM: November 3, 2008 R. Ja e' ing Fir Ass stant Ci Attorney For the City Att rney Tax Abatement Agreement Resolution -- Metropolis Lofts 10272008.doc —230— 2 2 3 Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Tax Abatement Agreement Resolution -- Metropolis Lofts 10272008.doc —231— TAX ABATEMENT AGREEMENT THE STATE OF TEXAS } } COUNTY OF NUECES } This Tax Abatement Agreement ( "Agreement ") is made and entered into by and between the City of Corpus Christi, Texas ( "City ") and Metropolis Lofts, LLC, a Texas Limited Liability Company ( "Owner "), the owner of taxable property in the City of Corpus Christi, Texas, located at 401 and 405 North Chaparral Street, Corpus Christi, Nueces County, Texas ( "Property "). I. AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Texas Tax Code, Chapter 312, as amended ( "Act "), and is subject to the laws of the State of Texas and the charter, ordinances, and orders of the City. II. DEFINITIONS A. As used in this Agreement, the following terms have the following meanings: 1. "Abatement" means the temporary or partial exemption from ad valorem taxes of certain added value to real and personal property in a zone designated for economic development purposes under the Act 2. "Added Value" means the increase In the assessed value of the Eligible Property as a result of "expansion" or "modernization" of an existing facility or construction of a "new facility." It does not mean or include "deferred maintenance." 3. "Base Year Value" means the assessed value of the Improvements on the Property as certified by the Nueces County Appraisal District as of the January 1 preceding the execution of this Agreement, plus the agreed upon value of Improvements made after January 1, but before the execution of this Agreement. 4. "Construction Phase" means the period during which a material and substantial improvement of the Property occurs which represents a separate and distinct construction operation undertaken for the purpose of erecting the Improvements. (a) The Construction Phase ends upon the earliest to occur of the following events: (1) When a certificate of occupancy is issued for the project (if within City limits). Page 1 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc (2) When commercial production of a product or provision of a service is achieved at the facility. (3) When the architect or engineer supervising construction issues a certificate of substantial completion, or some similar instrument. (4) Two (2) years after the date of this Agreement. (b) The determination of the end of the Construction Phase is made by the City, in its sole and absolute discretion, based upon the above criteria and the other factors as the City may deem relevant. (c) The determination of the end of the Construction Phase by the City is conclusive, and any judicial review of the determination is governed by the substantial evidence rule. 5. "Eligible Property" means the buildings, structures, site improvements, and that office space and certain personal property necessary to the operation and administration of the Facility to be constructed under this Agreement. A list of the Eligible Property is set forth in the Project Description, which is attached to this Agreement as Exhibit A and made a part of this Agreement. During the Construction Phase of the Eligible Property, the Owner may make the change orders to the Eligible Property as are reasonably necessary to accomplish its intended use, provided that no the change order may be made which will change the qualification of the project as a "Facility" under the City of Corpus Christi Guidelines for Granting Tax Abatement ( "Guidelines "). 6. "Facility" means a Central Business District (CBD) Residential Facility approved by the City under the Guidelines. 7.. "Improvements" means the buildings, portions of buildings, and other improvements, including fixed machinery and equipment, used for commercial or industrial purposes on the Property. 8. "Ineligible Property" means land; inventories: supplies; tools; furnishings and other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred maintenance investments; property to be rented or leased, except as provided in Section 2(e); any improvements, including those to produce, store or distribute natural gas, fluids or gases, which are not integral to the operation of the Facility; improvements to real property which have an economic life of less than 15 years; property owned or used by the State of Texas or its political subdivisions or by any organization owned, operated, or directed by a political subdivision of the State of Texas; unless any of the above types of property are specifically authorized by the City. Page 2 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —233— B. The Guidelines adopted by the City are incorporated as a part of this Agreement. Except as the Guidelines are specifically modified by this Agreement, all definitions in the Guidelines are applicable to this Agreement. III. PROPERTY A. The Property is an area within the City of Corpus Christi, Texas, located in whole or in part within the jurisdiction of the City, and is more fully described in Exhibit B attached to this Agreement and made a part of this Agreement. The Property is located within a zone for tax abatement established under Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus Christi, Texas. C. The Nueces County Appraisal District has established the following combined values for the Property as of the January 1, 2007. Account No. R191705 0540 - 0012 -0010 R191707 0540 - 0012 -0040 Personal property $0.00 Account No. R191705 0540 - 0012 -0010 R191707 0540 - 0012 -0040 Land Improvements $198,556.00 $1,376,109.00 C. The City and the Owner agree that the value of any additions to the Improvements made after January 1 or not otherwise reflected on the above valuation of Improvements is: Additional Improvements: $0.00 D. Addition of the above amount to the valuation of the Improvements as of the January 1 valuation date prior to the date of execution of this Agreement results in a Base Year Value as follows: Base Year Value: $1,574,665.00 IV. TERM OF ABATEMENT AND AGREEMENT A. The City agrees to abate the ad valorem taxes on the Eligible Property under this Article and Articles V and VI of this Agreement. The Abatement is effective with the January 1 valuation date immediately following the date of execution of this Agreement. The Abatement continues for up to two (2) years during the period of the Construction Phase and for the next five (5) full tax years after the Construction Phase, expiring as of December3l of the fifth tax year. If the period of the Construction Phase exceeds two Page 3 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —234— (2) years, the Facility is considered completed for purposes of Abatement, and in no case may the period of Abatement, inclusive of construction and completion exceed seven (7) tax years. The years of Abatement provided in this Agreement in each instance coincide with the tax year commencing on January 1 and expiring on December 31, and in no event may the Abatement extend beyond December 31 of the fifth tax year. This Abatement also covers as Eligible Property those supplemental improvements to the Eligible Property that are added or constructed during the post - construction five (5) year period of Abatement. In no event, however, may the total Abatement period for the Eligible Property exceed the maximum seven (7) year Abatement period for the entire project as specified in this Agreement. B. The term of this Agreement continues for a period of five (5) years following expiration of the abatement period. All terms and conditions imposed upon the Owner continue in effect during the period, and the Owner is obligated specifically to continue the minimum employment levels specified in this Agreement. Any default is be subject to the provisions of Article VIII of this Agreement. V. TAXABILITY During the period that the Abatement is effective, taxes is payable as follows: 1. The value of the land comprising the Property is fully taxable. 2. The Base Year Value of existing Improvements comprising the Property is fully taxable. 3. The value of Ineligible Property is fully taxable. 4. The Added Value of Eligible Property is abated under Article VI of this Agreement. VI. AMOUNT OF ABATEMENT A. The Abatement provided by this Agreement is based upon improvements for a Central Business District Residential Facility -- residential multi - family housing. There is no job creation requirement. The percentage of tax abated for each dollar of Added Value is under the following schedule: Percentage of Abatement Construction Period (not to exceed 2 years) 100% Yearl 100% Year 2 100% Page 4 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —235— Year 3 100% Year4 100% Year 5 100% B. At the time of execution of this Agreement, the Owner reasonably estimates and represents to the City that the Added Value comprising permanent Improvements upon completion of the Construction Phase is: $9,000,000.00 ( "Estimated Added Value "), of which $9,000,000.00 is eligible for tax abatement. C. In the event that upon completion of the Construction Phase, the Added Value of permanent Improvements, as determined by the Appraisal District, is at any time during the period of Abatement be less than eight -five percent (85 %) of the Estimated Added Value, not due to circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes under this Agreement, an amount equal to the then current tax rate of the City applied to the difference between the Added Value from eighty -five percent (85 %) of the Estimated Added Value, multiplied by 100 %, minus the net percentage of Abatement provided under this Agreement. For the purposes of this provision, the term "circumstances beyond the control of Owner" includes casualty losses, national economic factors, shutdowns due to governmental regulations, strikes, acts of war; and the like. D. The formula for calculating the additional tax is outlined as follows: [Tax Rate] x [(85% of Est. Added Value - Actual AV) x (100% - Abatement %)] = Additional Tax. VII. CONTEMPLATED IMPROVEMENTS The contemplated improvements are set forth in the Project Description attached as Exhibit "A." During the Construction Phase, the Owner may make the change orders to the project that are reasonably necessary, provided that no the change order may be made that will change the qualification of the project as a "Facility" under the Guidelines. All improvements must be completed under all applicable laws, ordinances, rules, or regulations. During the term of this Agreement, use of the Property is limited to operation of the Facility described in the Project Description consistent with the general purpose of encouraging development or redevelopment of the zone during the period of this Agreement. Page 5 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —236— VIII. EVENTS OF DEFAULT AND RECAPTURE A. Failure to Commence Operation During Term of Agreement. In the event that the Facility is not completed by the January 1 following the completion of construction, no abatement is given for that tax year, and the full amount of taxes assessed against the property is due and payable'for that tax year. In the event that the Owner fails to begin operation by the next January 1, then this Abatement Agreement terminates and all abated taxes during the period of construction are recaptured and must be paid within 60 days of the termination. B. Discontinuance of Operations During Term of Abatement. In the event the Facility is completed and begins operation, but subsequently discontinues operations during the term of the Agreement after the completion of construction, for any reason except on a temporary basis due to fire, explosion, or other casualty, accident, or natural disaster, the Agreement may be terminated by the City, and all taxes previously abated by virtue of this Agreement are recaptured and must paid within 60 days of the termination. C. Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to become delinquent or fails to timely and properly follow the legal procedures for their protest or contest, this Agreement terminates and the abatement of the taxes for the calendar year of the delinquency also terminates. The total taxes assessed without abatement for that calendar year must be paid within sixty (60) days from the date of termination. Penalty and interest do not begin to accrue on the additional amount of taxes due as the result of recapture under this provision until the first day of the month following the sixty (60) day notice, at which time penalty and interest accrues under the laws of the State of Texas. Penalty and interest on the amount of taxes originally levied based upon the Abatement begin to accrue as of the date the taxes were due under the laws of the State of Texas. D. Notice of Default. Should the City determine that the Owner is in default under the terms and conditions of this Agreement, City must notify the Owner that if the default is not cured within sixty (60) days from the date of the notice ( "Cure Period "), then this Agreement may be terminated. In the event the Owner fails to cure the default during the Cure Period, this Agreement may be terminated and the taxes abated by virtue of the Agreement will be recaptured and must be paid as provided in this Agreement. E. Actual Added Value. Should the Nueces County Appraisal District determine that the total level of Added Value during any year of the term of this Agreement after completion of the Construction Phase is lower than the Estimated Added Value the that a lower percentage of Abatement is applicable, for each year during which an Abatement has been granted, the difference between the tax abated and the tax that should have been abated based upon the actual Added Value is determined by the City and must paid within 60 days of notification to the Owner of the determination. Penalty and interest does not begin to accrue upon the sum until the first day of the month following the sixty (60) day notice, at which time penalty and interest accrues under the laws of the State of Texas. Page 6 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —237— F. Reduction in Rollback Tax Rate. 1. If during any year of the period of Abatement any portion of the abated value is added to the current total value of the City, but is not treated as "new property value" (as defined in Section 26.012 (17) of the Texas Tax Code) for the purpose of establishing the "effective maintenance rate" in calculating the "rollback tax rate" under Section 26.04 (c) (2) of the Texas Tax Code and if the City's budget calculations indicate that a tax rate in excess of the "rollback tax rate" is required to fund the operations of the City for the succeeding year, then the City recaptures from the Owner a tax in an amount equal to the lesser of the following: (a) The amount of the taxes abated for that year by the City with respect to the Property. (b) The amount obtained by subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and multiplying the difference by the total assessed value of the City. 2. If the City has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated under subparagraph (b) above is prorated on the basis of the value of the abatement with respect to each taxpayer. 3. This event does not constitute a "default" under this Agreement, and the sixty (60) day Cure Period provided above does not apply. The recaptured taxes must be paid within thirty (30) days after notice of the rollback in tax rate has been given to the Owner. Penalty and interest do not begin to accrue upon the sum until the first day of the month following the thirty (30) day notice, at which time penalty and interest accrue under the laws of the State of Texas. G. Continuation of Tax Lien. 1. The amount of tax abated each year under the terms of this Agreement is secured by a first and prior tax lien, which continue in existence from year to year until the time as this Agreement between the City and Owner is fully performed by Owner, or until all taxes, whether assessed or recaptured, are paid in full. H. City Council Reserves Right to Terminate of Modify Agreement. In the event of any default by Owner, the City Council reserves the right to terminate or modify this Agreement. I. Owner's right to appeal. 1. Owner must be afforded written notice of the default and the opportunity to cure as provided above. Page 7 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —238— 2. If Owner believes the action was improper, Owner may file an appeal in Nueces County district court within sixty (60) days after written notice of the action by the City. 3. Owner shall remit to the City, within the 60 -day period, any additional or recaptured taxes levied under the payment provisions of Texas Tax Code § 42.08. 4. If the final determination of the appeal increases Owner's tax liability above the amount paid, Owner shall remit the additional tax under Tax Code § 42.42. 5. If the final determination of the appeal decreases Owner's tax liability, the City will refund the Owner the difference between the amount of tax paid and the amount of tax for which Owner is liable under Tax Code § 42.43. IX. ADMINISTRATION A. Inspections. The Owner shall allow employees and /or representatives of the City to have access to the Property during the term of this Agreement to inspect the Facility to determine compliance with the terms and conditions of this Agreement. All inspections will be made only after the giving of twenty -four (24) hours prior notice, and conducted in the manner as to not unreasonably interfere with the construction or operation of the Facility. All inspections must be made with one or more representatives of the Owner and under Owner's safety standards. B. Appraisals. 1. The Chief Appraiser of the Nueces County Appraisal District annually determines: (a) The taxable value of the real and personal property comprising the Property taking into consideration the Abatement provided by this Agreement. (b) The full taxable value without Abatement of the real and personal property comprising the Property. 2. The Chief Appraiser records both the abated taxable value and the full taxable value in the appraisal records. 3. The full taxable value figure listed in the appraisal records is used to compute the amount of abated taxes that are required to be recaptured and paid in the event this Agreement is terminated in a manner that results in recapture. 4. Each year the Owner shall furnish the Chief Appraiser with the information outlined in Chapter 22, Texas Tax Code, as amended, as may be necessary for the administration of the Agreement specified in this Agreement. Page 8 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —239— C. Annual Reports. 1. Owner shall certify to the governing body of the City on or before April 1 each year that the Owner is in compliance with each applicable term of this Agreement. 2. Additionally, during the initial four years of the term of property tax abatement, Owner shall provide to the City an annual report covering those items listed on Schedule I attached to this Agreement in order to document the efforts of the Owner to acquire goods and services on a local basis. 3. The annual report must be prepared on a calendar year basis and is submitted to the City no later than ninety (90) days following the end of each the calendar year. 4. The annual report must accompanied by an audit letter prepared by an independent accounting firm which has reviewed the report. 5. The copies of the four prior quarterly IIRS 941 returns must be provided to verify employment D. "Buy Local" Provision. 1. The Owner shall give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. 2. In the case of an exception involving a purchase over $10,000.00, the justification for the purchase must be included in the annual report. 3. The Owner further acknowledges that it is a legal and moral obligation of persons receiving property tax abatements to favor local manufacturers, suppliers, contractors, and labor, all other factors being equal. 4. For the purposes of this provision, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office in either Nueces County or San Patricio County. 5. In the event of a breach of the buy local provision, the percentage of abatement is proportionately reduced — to the amount the disqualified contract bears to the total construction cost for the project. X. ASSIGNMENT Page 9 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc -240- A. The Owner may assign this Agreement to any one or more corporation(s), 50% or more of the outstanding voting securities of which are owned, directly or indirectly, by one of the Owners, or any partnership(s) or limited partnership(s) in which an Owner, or a subsidiary of an Owner, is a general partner. B. The Owner may assign this Agreement to any other new owner or lessee of the Facility with the prior written consent of the City, which consent may not be unreasonably withheld. C. Any assignment must provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor and become the Owner upon the same terms and conditions as set out in this Agreement. D. In the event more than one entity is Owner under this Agreement, the obligations of the entities is joint and several. E. Any assignment of this Agreement is to an entity that must provide substantially the same improvements to the Property, except to the extent the improvements have been completed. F. No assignment is approved if the Owner or any assignee is indebted to the City for ad valorem taxes or other obligations. XI. NOTICES A. Any notice required to be given under the provisions of this Agreement must be in writing and are duly served when deposited, with the proper postage prepaid, and registered or certified, return receipt requested, with the United States Postal Service, addressed to the City or Owner at the addresses listed below. B. If mailed, any notice or communication is deemed to be received three days after the date of deposit in the United States Mail. Unless otherwise provided in this Agreement, all notices is delivered to the following addresses: To the City: To the Owner: CITY OF CORPUS CHRISTI 1201 Leopard Street P. 0. Box 9277 Corpus Christi, Texas 78469 Attn: City Manager METROPOLIS LOFTS, LLC c/o J. Golden Properties, Inc. 143 W. 4th Street Yorktown, Texas 78164 C. Either party may designate a different address by giving the other party ten days" written notice. Page 10 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —241— This Agreement has been executed by the parties in multiple originals or counterparts, each having full force and effect. Executed this day of 2008. ATTEST: CITY OF CORPUS CHRISTI, TEXAS By: By: Armando Chapa 'Angel R. Escobar City Secretary Interim City Manager APPROVED AS TO FORM: By: R. Jay Reining First Assistant City Attorney For City Attorney THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2008, by 'Angel R. Escobar, Interim City Manager, City of Corpus Christi, Texas, a Texas home - rule municipal corporation, on behalf of the corporation. Notary Public, State of Texas Page 11 of 13 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —242— OWNER: METROPOLIS LOFTS: LLC By its Member: J. Golden Properties, Inc. By: John M. Golden President J. Golden,Properties, Inc. THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2008, by John M. Golden. President, J. Golden Properties, Inc., on behalf of Metropolis Lofts, LLC, a Texas domestic limited liability company, on behalf of the company, as its member. Notary Public, State of Texas Page 12 of 13 TAX%20ABATEMENT%2DAGREEMENT%20—%20Metrapotis%20Lofts%2011032008111 —243— SCHEDULE 1 "Buy Local" Annual Reports The following information is reported to the City on a calendar -year basis during the first four years of the tax abatement program: 1. Dollar amount spent for materials* (local). 2. Dollar amount spent for materials (total). 3. Dollar amount spent for labor ** (local). 4. Dollar amount spent for labor ** (total). 5. Number of jobs created in the construction project (local). 6. Number of jobs created in the construction project (total). 7. Number of jobs created on a permanent basis (local). 8. Number of jobs created on a permanent basis (total). * "Materials" are defined to include all materials used in excavation, site improvement, demolition, concrete, structural steel, fire proofing, piping, electrical, instruments, paintings and scaffolding, insulation, temporary construction facilities, supplies, equipment rental in construction, small tools and consumables. This term does not include major items of machinery and equipment not readily - available locally. ** "Labor" is defined to include all labor in connection with the excavation, site improvement, demolition, concrete construction, structural steel, fire proofing, equipment placement, piping, electrical, instruments, painting and scaffolding, insulation, construction services, craft benefits, payroll burdens, and related labor expenses. This term does not include engineering services in connection with the project design. The term "local" as used to describe manufacturers, suppliers, contractors and labor shall include firms, businesses, and persons who reside in or maintain an office in either Nueces County or San Patricio County. TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —244— Exhibit A Project Plan Renovation of existing buildings into mixed -use residential apartments over commercial retail. For lease apartments and for lease retail. At least $9,000,000.00 will be spent on improving the existing buildings. Metropolis Lofts, LLC will create 5 permanent full -time jobs to manage and operate the property. It is anticipated that the commercial retail spaces will result in the creation of 50 permanent full -time or part-time jobs. A -1 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —245— EXHIBIT B PROPERTY DESCRIPTION Main building, located at 401 -405 N. Chaparral Street, is a 5 -story, poured -in -place concrete construction building, 114,000 sq. feet. Legal description Beach Subdivision, Block 12, Lot 1A. Building 2, located at 401 -405 N. Chaparral Street, is a 3 -story, poured -in -place concrete construction building, with 10,000 sq. feet. Legal description Beach Subdivision, Block 12, Lot 1A. B -1 TAX ABATEMENT AGREEMENT -- Metropolis Lofts 11032008.doc —246— 24 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution approving a small business incentive agreement between the Corpus Christi Business and Job Development Corporation and Del Mar College for Fast Trac Growth Venture Program which will provide up to $120,000 in grants to program participants who create and retain new jobs for their businesses, and authorizing the City Manager, or designee, to execute a small business incentive project support agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the Del Mar College Small Business Incentive Agreement. ISSUE: To assist small business owners who desire to grow their business and create jobs. PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends approval of the agreement for $120,000 to provide a grant to program participants who create and retain new jobs for their business. Irma C allero Director of Economic Development —249— BACKGROUND INFORMATION FastTrac Growth Venture TM targets existing, successful small business owners with a desire to grow their business. Typically, these individuals are smart, articulate and focused on making their business a success. Their enterprise has grown past the start- up, survival phase, is profitable, has the beginnings of a management team and has the potential for sustainable, substantial growth. Focused on running the day -to day operations of their business, owners struggle with finding the time to plan, consider, or develop a strategy for growth. The FT Growth Venture program, written for and by entrepreneurs, allows participants to build a framework to recreate and revitalize their business. The program's primary objectives are designed to effectively evaluate and improve the following: • Overall business strategy and vision for the future • Ability to maintain a competitive advantage in the marketplace • Changing role in managing the business • Readiness for growth and profitability potential • Focus and alignment of all aspects of the business The program is an intensive ten week, interactive course. The twelve business owners will determine the current reality and then devise a plan. The program does not use the traditional, lecture based educational model. Hands -on coaching, discussion groups, individual exercises, (in and outside the classroom), guest speakers — experienced entrepreneurs and professionals — combine to stimulate, exercise, leverage and strengthen existing knowledge and skills. The project represents a new utilization for existing Workforce Solutions interns and the valuable small business contacts established by their efforts. This program will enhance and leverage the Internship program already established by the 4(A) Board. The total cost for this project is $190,603 of which $120,000 is being requested by the Corpus Christi Business and Job Development Corporation. The requested funds will be utilized to provide each business owner with a $10,000 grant for the completion of the program and employment of at least one additional full -time employee. Business owners will receive $5,000 upon hiring a new employee and an additional $5,000 at the end of a six month period, for job retention. —250— Page 1 of 3 A RESOLUTION APPROVING A SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND DEL MAR COLLEGE FOR THE FASTTRAC® GROWTH VENTURETM PROGRAM, WHICH WILL PROVIDE UP TO $120,000 IN GRANTS TO PROGRAM PARTICIPANTS WHO CREATE AND RETAIN NEW JOBS FOR THEIR BUSINESSES, AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A SMALL BUSINESS INCENTIVE PROJECT SUPPORT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION AND ADMINISTRATION OF THE DEL MAR COLLEGE SMALL BUSINESS INCENTIVE AGREEMENT WHEREAS, the Corpus Christi Business and Job Development Corporation ( "4A Board ") has budgeted funds to assist small business in Corpus Christi, Texas. WHEREAS, in 2008, the 4A Board requested proposals and determined that the proposal from Del Mar College ( "Del Mar "), best provided assistance for small business support; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the small business incentive project support agreement; WHEREAS, the 4A Board's small business incentive agreement with Del Mar for the FastTrac® Growth Venture TM Program authorizes up to $120,000 in grants to program participants who create and retain new jobs for their businesses. WHEREAS, there is a need for a small business incentive project support agreement between the City of Corpus Christi ( "City ") and the 4A Board for the implementation and administration of the small business incentive agreement with Del Mar for FastTrac® Growth Venture TM Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the small business incentive agreement between the 4A Board and Del Mar for the FastTrac® Growth Venture TM Program, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and 4A Board for the implementation and administration of the small business incentive agreement with Del Mar for the FastTrac® Growth Venture TM Program, which is attached to this resolution as Exhibit B. RESOLUTION -- Small Business Agreement -- Del Mar FastTrac10312008.doc ATTEST: Page 2 of 3 CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary //���� Mayor APPROVED as to form: /Uo-G---9, 2008 R. Ja First Assistant City Atttorney For the City Attorney RESOLUTION -- Small Business Agreement -- Del Mar FastTrac 10212008.doc Page 3 of 3 Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -253 — RESOLUTION -- Small Business Agreement -- Del Mar FastTrac 10312008.doc SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND DEL MAR COLLEGE FOR THE FASTRAC GROWTH VENTURE PROGRAM This Small Businesses Incentive Agreement for an Interest Buy -Down Program for Small Businesses ( "Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and Del Mar College, a Texas junior college district ( "Del Mar "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ( "City ") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1 /8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ( "Board "), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979; Art. 5190.6. Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the corporation; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007; WHEREAS, Del Mar is a Texas nonprofit corporation whose principal mission is to ; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to Del Mar, through this contract with Del Mar, to be used by Del Mar for the FastTrac® Growth Venture Program, which will result in creation of at least 12 new full -time permanent jobs in the City of Corpus Christi. Page 1 of 9 SMALL BUSINESS INCENTIVE AGREEMENT — Del Mar Fael2644632008.doc in consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and Del Mar agree as follows: 1. Effective Date. The effective date of this Agreement ( "Effective Date ") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for one year from December 1, 2008, through December 31, 2009. 3. Grant. The Corporation will fund up to twelve $10,000 grants to be awarded to successful participants in Del Mar's FastTrac® Growth VentureTM. FastTrac® Growth VentureTM is an intensive ten week, interactive course that targets existing, successful small business owners with a desire to grow their business. In order to receive a $10,000 grant, the successful participants must: a. Complete the course. b. Represent a "business expansion." c. Create and retain one new job to their business, while retaining their existing jobs. 4. Job Creation Qualification. a. In order to count as a created job under this Agreement, the job must pay wages as required by Section 38(b) of the Development Corporation Act of 1979, as amended, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. A full -time permanent job is one that provides at least 2,080 hours annually. c. Del Mar agrees to confirm and document to the Corporation that each job created as a result of funding provided by this Agreement is maintained throughout the term of the loan to the Business. d. Del Mar agrees to provide Corporation with a sworn certificate by authorized representative of each shall business assisted under this Agreement certifying the number of full -time permanent employees employed by the small business. e. Del Mar shall ensure that the Corporation is allowed reasonable access to personnel records of the small businesses assisted under this Agreement. 5. Buy Local Provision. a. Del Mar agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably Page 2of9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar Fast-T2515482008 doe possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. b. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50- mile radius of Nueces County. 6. Local Offices. Two staff persons of Del Mar offices shall be located in Corporation designated offices or a mutually agreeable location. 7. Representation on Del Mar governing board. Del Mar agrees to appoint a person designated by the Corporation as a member of Del Mar governing board. 8. Warranties. Del Mar warrants and represents to Corporation the following: a. Del Mar is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. Del Mar has the authority to enter into and perform, and will perform, the terms of this Agreement. c. Del Mar has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. Del Mar has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. If an audit determines that the funds were not used for authorized purposes. Del Mar agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. f. The parties executing this Agreement on behalf of Del Mar are duly authorized to execute this Agreement on behalf of Del Mar. 9. Compliance with Laws. Del Mar shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 10. Non - Discrimination. Del Mar covenants and agrees that Del Mar will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the Page 3 of 9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar Fasli2a5 5Ie32008.doc grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 11. Force Majeure. If the Corporation or Del Mar are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or Del Mar are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 12. Assignment. Del Mar may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 13. Indemnity. Del Mar covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents (`Indemnitees ") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with Del Mar activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. Del Mar must, at its own expense, investigate -all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 14. Events of Default. The following events constitute a default of this Agreement: a. Failure of Del Mar to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Agreement. b. The Corporation or City determines that any representation or warranty on behalf of Del Mar contained in this Agreement or in any financial statement, Page 4 of 9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar FasrT2e51l032008.doc certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; c. Any judgment is assessed against Del Mar or any attachment or other levy against the property of Del Mar with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. Del Mar makes an assignment for the benefit of creditors. e. Del Mar files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by Del Mar become delinquent, and Del Mar fails to timely and properly follow the legal procedures for protest or contest. g. Del Mar changes the general character of business as conducted of the date this Agreement is approved by the Corporation. 15. Notice of Default. Should the Corporation or City determine that Del Mar is in default according to the terms of this Agreement, the Corporation or City shall notify Del Mar in writing of the event of default and provide 60 days from the date of the notice ( "Cure Period ") for Del Mar to cure the event of default. 16. Results of Uncured Default. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of Del Mar, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. a. Del Mar shall immediately repay all funds paid by Corporation under this Agreement. b. Del Mar shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation. c. The Corporation shall have no further obligations to Del Mar under this Agreement. d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 17. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. Page 5 of 9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar Fa5f& Bf 32008.doc b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of Del Mar' default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time Del Mar is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 18. Del Mar specifically agrees that Corporation shall only be liable to Del Mar for the actual amount of the money grants to be conveyed to Del Mar , and shall not be liable to Del Mar for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this agreement, being August 1, 2008, through July 31, 2009. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from Del Mar to be accompanied by all necessary supporting documentation. 19. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: Del Mar College: Del Mar College Small Business Development Center East Campus Corpus Christi, TX 78404 -3897 Attn: Director, SBDC Page 6 of 9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar Fast 9}932006.doc Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.:City Manager P.O. Box 9277 Corpus Christi, Texas 78469 -9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 20. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ( "Corporation Guidelines "), as amended, are incorporated into this Agreement. 21. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 22. Relationship of Parties. In performing this Agreement, both the Corporation and Del Mar will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint- venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 23. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 24. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, Page 7 of 9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar FastT2&0032008.doc paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 25. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 26. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and Del Mar. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 27. Survival of terms of agreement and obligations of parties. The terms of this agreement and the obligation of the parties relating to [what survives] shall survive the termination of this agreement. Corpus Christi Business & Job Development Corporation By: Eloy Salazar Chairperson Date: Attest: By: Armando Chapa Assistant Secretary Page 8 of 9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar Fas tr2c611032008.doc Del Mar College By: Mark Escamilia President Date: THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2008, by Mark Escamilia, President, for Del Mar College, on behalf of the college district. Notary Public State of Texas Page 9 of 9 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar Fas17Z6Q032008.doc SMALL BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT FOR DEL MAR COLLEGES FASTTRAC® GROWTH VENTURE"' PROGRAM This Small Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors; WHEREAS, the Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ( "Board "), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007:: WHEREAS, Del Mar College has submitted a proposal to the Corporation for $120,000.00 for FastTrac® Growth Venture TM Program: WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund the Del Mar College's FastTrac® Growth Venture TM Program; and WHEREAS, the Corporation and Del Mar College have executed a small business incentive project agreement for the FastTrac® Growth Venture TM Program. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Corporation and the City agree as follows: _ ae1of3 Project Support Agreement 4A -City -- Del Mar FastTrac 103120��tl c 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Corporation is executed to implement the Small Business Incentive Agreement for the FastTrac® Growth Venture TM Program between the Corporation and Del Mar College ( "Small Business Incentive Agreement "). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Small Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Small Business Incentive Agreement for the Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City's Council. 5. Effective Date. The effective date of this Project Service Agreement is the latest date that either party executes this Agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or _e2of3 Project Support Agreement 4A -City -- Del Mar FastTrac -103120 oc unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation 'Angel R. Escobar Eloy Salazar Interim City Manager Chairperson Date: Date: Attest Armando Chapa City Secretary Approved as to Legal Form: , 2008. R. Jay Reining First Assistant City Attorney for City Attorney 3of3 Project Support Agreement 4A -City — Del Mar FastTrac 1031200 oc 25 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution approving an agreement between the Corpus Christi Business and Job Development Corporation and Texas A &M University- Corpus Christi for development of facilities for TAMU -CC's Bachelor of Science in Mechanical Engineering program, which grants $1,000,000 for retrofitting and outfitting laboratories, and authorizing the City Manager, or designee, to execute a project support agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the Texas A &M University- Corpus Christi agreement. ISSUE: Assist in TAMU -CC's expansion efforts to develop a Mechanical Engineering program that will assist with new business recruitment for the Coastal Bend area. PREVIOUS COUNCIL ACTION: Resolution of Support approved by Council on October 14, 2008. CONCLUSION AND RECOMMENDATION: Staff recommends approval of an agreement to grant $1,000,000 to TAMU -CC for the development of facilities for the Bachelor of Science in Mechanical Engineering program. —269— rma Ca Ilero Director of Economic Deveiopment BACKGROUND INFORMATION The proposed agreement was presented and approved by the Corpus Christi Business and Job Development Corporation (4A Board) on October 27, 2008. Texas A &M University- Corpus Christi requested an incentive agreement for $1,000,000 for the development of facilities for the Bachelor of Science in Mechanical Engineering program. . In 2007, 522 potential students inquired about engineering programs at Texas A &M University- Corpus Christi (TAMUCC) though a program did not exist. As a result TAMUCC is seeking to establish an undergraduate degree program in mechanical engineering (BSME). The ME curriculum will feature strong -hands on experience with particular attention on teamwork, communication skills, and innovation. This will produce MEs who are not only competent problem solvers but are also ethical, responsible, and well rounded citizens poised to become community leaders in their respective fields and also able to pursue graduate studies. The program will include a cooperative education component involving a full -time internship in industry. The ME program will support and provide expertise for industries and related businesses in the Gulf of Mexico. Graduates will find jobs in areas such as project management, plant supervision and process engineering. The curriculum, designed on a five -year schedule, involves a cooperative experience whereby students have periodic full -time work experiences with participating industries and businesses. The proposed program will specifically target the unique requirements of the 400,000 residents and Port Industries of the Corpus Christi metropolitan statistical area therefore, it will not compete nor unnecessarily duplicate other programs within the State or other institutions in the nation. Benefits to the City: • Assist with new business recruitment by providing skilled employees and supports the locally large industrial complex with a trained, growing employee pool. • Provides qualified candidates for the 400 -450 engineering jobs projected for the region by Workforce Solutions of the Coastal Bend by 2014. • Increases the number of local, highly compensated positions. Starting salary for BSME graduates is $75,000 to $80,000 per year with estimated annual increases of 5% to 10% per year. • Adds 4 additional university professors with annual salaries of $100,000 to $120,000 each and one staff position, with an annual salary of $40,000 over a four year period. • Impacts the local economy by approximately $15 million within the first five years • Improves hiring and retention by more than 30 large businesses in the Coastal Bend region. —270— TAMUCC is requesting $1 million for development of facilities for the BSME program, including retrofitting and outfitting the laboratories currently used in TAMUCC's mechanical engineering technology and electrical engineering technology programs. TAMUCC will be reimbursed for authorized expenditures related to the retrofitting and outfitting of the engineering laboratories. The program is expected to enroll it's first students by the fall of 2009. —271— { Irma caballero - ur. K's letter to 4A Hoara- (4).aoc Page 1 September 8, 2008 Corpus Christi Business and Job Development Corporation 1201 Leopard Corpus Christi, Texas 78401 Dear Corporation Members: Thank you for your consideration of this proposal. I am writing on behalf of Texas A &M University - Corpus Christi to request one million dollars in funding from the Corpus Christi Business and Job Development Corporation to assist in the establishment of an undergraduate degree in mechanical engineering (BSME) at the university. The need for additional engineers statewide and locally, is well documented; please see the attached "Needs Statement." Additionally, a synopsis of the university's proposed program is also attached; please see "Proposed Degree Program." The establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the city by: *Addressing the lack of a trained workforce, thus assisting with new business recruitment to the city. *Providing for local hiring of educated, skilled employees by existing industries, thus increasing their capability and capacity; i.e., it will be easier for the local economy to find qualified personnel. *Enhancing the retention of employees because they are educated locally, and already have made a commitment to Corpus Christi. *Providing qualified candidates for many of the 400 -450 engineering jobs Coastal Bend Workforce Development anticipates by 2014. *Increasing the number of local highly compensated positions; the starting salary of BSME graduates is $75,000 to $80,000 per year with estimated annual increases of 5% to 10% per year. *Providing for four additional university faculty (annual salaries of $100,000 to $120,000 each) and one staff position (annual salary of $40,000) over a four year period. -2725 Irma uaoaller0 - ur . r s letter ro 4A Coara- (4).aoC Page 2 *Providing a cumulative total of 122 students over a five year period, with increases as the program becomes well established. *Bringing additional student tuition, as well as state dollars through student credit hour revenue, to the university. *Assisting local businesses through financial /spending and personal contributions of increased numbers of faculty, staff, and students. *Impacting the local economy by approximately $15 million by the end of the first five years of the program. The funds we are requesting from the Business and Job Development Corporation will be used to retrofit and properly outfit with equipment and fumishings, the laboratories currently used in our mechanical engineering technology and electrical engineering technology programs. Additionally, it will bet used to purchase computer hardware and software necessary in the teaching of the BSME program. It will also provide student and faculty /staff support as we recruit these individuals to Texas A &M University - Corpus Christi. We anticipate the five year cumulative total of these purchases to be $1,250,000. The one million dollars requested may be paid over a period of up to three years. A suggested payment schedule is $500,000 payable on or before December 31, 2008; $250,000 payable on or before December 31, 2009 and $250,000 payable on or before December 31, 2010. However, 1 would request that your written response to this proposal and confirmation of your financial commitment be received by me not later than November 15, 2008. I look forward to meeting with you again on September 15`h. On behalf of the Texas A &M University- Corpus Christi thank you for your consideration of this proposal. Very truly yours, Flavius C. Killebrew, PhD President and CEO Attachments KWS 9573- www.amarilloedc.com August 21, 2008 Ms. Irma Caballero Economic Development Director City of Corpus Christi 1201 Leopard Street Corpus Christi, TX 78401 Dear Ms. Caballero: I am writing to follow -up on our phone conversation regarding the use of 4A EDC funding for education and training programs. The Amarillo EDC, a 4A corporation, has provided funding assistance for workforce training and education to a number of projects. We believe providing an educated and trained workforce to existing and prospective new business /industry is a core mission of our organization. Outlined below are examples of projects we've undertaken over the years: • Grant to West Texas A &M University (WTAMU)n the amount of $1,040,000 for the conversion of a portion of an existing building for use as a laboratory and to purchase equipment, furnishings, computer hardware and software to establish an undergraduate degree in Mechanical Engineering • Grant to Texas Tech University (TTU)for the construction of a new School of Pharmacy in Amarillo, Texas. Grant funds in the amount of $6,000,000 were used to leverage state funding for the construction of the School of Pharmacy • Grant to West Texas A &M University ( WTAMU) in the amount of $2,043,921 for start-up and lease costs to establish a new WTAMU Amarillo Center in downtown Amarillo. The Amarillo Center facility benefits Amarillo in several ways: 1) brings a new employer to downtown Amarillo; 2) supports existing business and industry through training and education programs; 3) expands our ability to recruit and retain jobs in the greater Amarillo area; and 4) supports downtown redevelopment In addition to the projects listed above, the Amarillo EDC has also provided funding support to Amarillo College (AC) to establish education and training programs for business recruitment, retention and expansion for the aviation /aerospace (component assembly), composite materials manufacturing (robotics), energy and metals manufacturing (metal testing) and business services (software development) industries. Our partnerships with AC, WTAMU and TTU are critical to the success of our economic development efforts. Please contact me at your convenience if I can answer any questions or provide additional information. Sincerely, of Richard (Buzz) David, CEcD President & CEO -274- Page 1 of 3 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND TEXAS A & M UNIVERSITY -- CORPUS CHRISTI FOR DEVELOPMENT OF FACILITIES FOR TAMU -CC'S BACHELOR OF SCIENCE IN MECHANICAL ENGINEERING PROGRAM, WHICH GRANTS $1,000,000 FOR RETROFITTING AND OUTFITTING LABORATORIES, AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A PROJECT SUPPORT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION AND ADMINISTRATION OF THE TEXAS A & M UNIVERSITY -- CORPUS CHRISTI AGREEMENT WHEREAS, the Corpus Christi Business and Job Development Corporation ( "4A Board ") has budgeted funds to promote job training that will result in new jobs in Corpus Christi, Texas. WHEREAS, in 2008, the 4A Board requested proposals and determined that the proposal from Texas A & M University -- Corpus Christi ( "TAMU -CC "), best provided an opportunity for job training that meets the needs of the local community; WHEREAS, the4A Board's agreement with TAMU -CC provides a $1,000,000 grant for development of facilities for TAMU -CC's Bachelor of Science in Mechanical Engineering program. WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the agreement between the 4A Board and TAMU -CC; and WHEREAS, there is a need for a project support agreement between the City of Corpus Christi ( "City ") and the 4A Board for the implementation and administration of the agreement with TAMU -CC for development of facilities for TAMU -CC's Bachelor of Science in Mechanical Engineering program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the agreement between the 4A Board and TAMU -CC, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and 4A Board for the implementation and administration of the agreement with TAMU -CC for development of facilities for TAMU -CC's Bachelor of Science in Mechanical Engineering program, which is attached to this resolution as Exhibit B. RESOLUTION — Agreement -- TAMU -CC BSME 10312008-2 7 5— ATTEST: CITY OF CORPUS CHRISTI Page 2 of 3 Armando Chapa Henry Garrett City Secretary Mayor APPROVED as to form: , 2008 R. Jay Reining First Assistant City Attorney For the City Attorney RESOLUTION -- Agreement -- TAMU -CC BSME 10312008-276— Page 3 of 3 Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon RESOLUTION -- Agreement — TAMU -CC BSME 10312008-277— AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND TAMU -CC FOR DEVELOPMENT OF FACILITIES FOR THE BACHELOR OF SCIENCE IN MECHANICAL ENGINEERING PROGRAM This Agreement for ( "Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and Texas A & M University — Corpus Christi ( "TAMU -CC "), a state institution of higher education. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ( "City') passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the ballot measure authorized the use of the funds to make grants to organizations to provide training and education to insure the knowledge and skills required for the jobs of the future are in place; WHEREAS, the Development Corporation Act of 1979 authorizes the use of funds for primary job training facilities for use by institutions of higher education; WHEREAS, the 1 /8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6. Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the corporation; WHEREAS, TAMU -CC has been authorized to offer an undergraduate degree in mechanical engineering ( "BSME ") by the Texas Higher Education Coordinating Board; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to TAMU -CC, through this contract with TAMU -CC, to be used by TAMU -CC for expenses related to establishing the facilities for the BSME program, including retrofitting and outfitting the TAMU -CC BSME AGREEMENT 10272008 Page 1 of 8 —278— laboratories currently used in TAMU -CC's mechanical engineering technology and electrical engineering technology programs. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and TAMU -CC agree as follows: 1. Effective Date. The effective date of this Agreement ( "Effective Date ") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for one year from August 1, 2008, through July 31, 2009. This agreement may be extended at the option of the Corporation for up to two additional one year terms, contingent upon annual appropriation of funds and approval of the City Council. 3. The Corporation grants TAMU —CC $1,000,000.00 for development of facilities for the BSME program, including retrofitting and outfitting the laboratories currently used in TAMU -CC's mechanical engineering technology and electrical engineering technology programs. a. The specific items that are funded by this grant are described in Exhibit A, which is attached to and incorporated into this agreement. b. The Corporation will reimburse TAMU —CC for authorized expenditures related to the retrofitting and outfitting of the engineering laboratories. 4. Buy Local Provision. a. TAMU -CC agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. b. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50- mile radius of Nueces County. 5. Warranties. TAMU -CC warrants and represents to Corporation the following: a. TAMU -CC is a state institution of higher education, duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. TAMU -CC has the authority to enter into and perform, and will perform, the terms of this Agreement. TAMU -CC BSME AGREEMENT 10272008 Page 2 of 8 —279— c. TAMU -CC has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. d. If an audit determines that the funds were not used for authorized purposes, TAMU -CC agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. e. The parties executing this Agreement on behalf of TAMU -CC are duly authorized to execute this Agreement on behalf of TAMU -CC. 6. Compliance with Laws. TAMU -CC shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 7. Non - Discrimination. TAMU -CC covenants and agrees that TAMU -CC will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 8. Force Majeure. If the Corporation or TAMU -CC are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or TAMU -CC are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 9. Assignment. TAMU -CC may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 10. Indemnity. To the extent authorized by law, TAMU -CC covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ( "Indemnitees ") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with TAMU -CC activities conducted under or incidental to TAMU -CC BSME AGREEMENT 10272008 Page 3 of 8 -280- this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the lndemnitees. TAMU -CC must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to lndemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 11. Events of Default. The following events constitute a default of this Agreement: a. Failure of TAMU -CC to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Agreement. b. The Corporation or City determines that any representation or warranty on behalf of TAMU -CC contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; c. Any judgment is assessed against TAMU -CC or any attachment or other levy against the property of TAMU -CC with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. TAMU -CC makes an assignment for the benefit of creditors. e. TAMU -CC files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by TAMU -CC become delinquent, and TAMU -CC fails to timely and properly follow the legal procedures for protest or contest. g. TAMU -CC changes the general character of business as conducted of the date this Agreement is approved by the Corporation. 12. Notice of Default. Should the Corporation or City determine that TAMU -CC is in default according to the terms of this Agreement, the Corporation or City shall notify TAMU -CC in writing of the event of default and provide 60 days from the date of the notice ( "Cure Period ") for TAMU -CC to cure the event of default. 13. Results of Uncured Default. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of TAMU -CC, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. TAMU -CC BSME AGREEMENT 10272008 Page 4 of 8 -281- a. TAMU -CC shall immediately repay all funds paid by Corporation under this Agreement. b. TAMU -CC shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation. c. The Corporation shall have no further obligations to TAMU -CC under this Agreement. d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 14. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of TAMU -CC' default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time TAMU -CC is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 15. TAMU -CC specifically agrees that Corporation shall only be liable to TAMU -CC for the actual amount of the money grants to be conveyed to TAMU -CC , and shall not be liable to TAMU -CC for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this agreement, being August 1, 2008, through July 31, 2009. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that Page 5 of 8 TAMU -CC BSME AGREEMENT 10272008 -282— year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from TAMU -CC to be accompanied by all necessary supporting documentation. 16. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: TAMU -CC: TAMU -CC Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.:City Manager P.O. Box 9277 Corpus Christi, Texas 78469 -9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 17. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 18. Relationship of Parties. In performing this Agreement, both the Corporation and TAMU -CC will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint- venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 19. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. TAMU -CC BSME AGREEMENT 10272008 Page 6 of 8 —283— 20. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 21. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 22. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and TAMU -CC. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 23. Survival of terms of agreement and obligations of parties. The terms of this agreement and the obligation of the parties relating to [what survives] shall survive the termination of this agreement. Corpus Christi Business & Job Development Corporation By: Eloy Salazar Chairperson Date: Attest: By: Armando Chapa Assistant Secretary TAMU -CC BSME AGREEMENT 10272008 Page 7 of 8 —284— TAMU -CC By: Date: THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on 2008, by , for TAMU -CC, a Texas non - profit corporation, on behalf of the corporation. Notary Public State of Texas TAMU -CC BSME AGREEMENT 10272008 Page 8 of 8 —285— PROJECT SERVICE AGREEMENT FOR DEVELOPMENT OF FACILITIES FOR TEXAS A & M UNIVERSITY — CORPUS CHRISTI'S BACHELOR OF SCIENCE IN MECHANICAL ENGINEERING PROGRAM This Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors; WHEREAS, the Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the ballot measure authorized the use of the funds to make grants to organizations to provide training and education to insure the knowledge and skills required for the jobs of the future are in place; WHEREAS, the Development Corporation Act of 1979 authorizes the use of funds for primary job training facilities for use by institutions of higher education; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6. Vernon's Texas Revised Civil Statutes. requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007; WHEREAS, Texas A & M University -- Corpus Christi has submitted a proposal to the Corporation for $1,000,000.00 for development of facilities for their Bachelor of Science in Mechanical Engineering program; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund the retrofitting and outfitting of laboratories of facilities for the Texas A & M University -- Corpus Christi's Bachelor of Science in Mechanical Engineering program; and Page 1 of 3 Project Support Agreement 4A -City -- TAMU -CC BSME 109'Q1&:6 — WHEREAS, the Corporation and Texas A & M University -- Corpus Christi have executed an agreement for development of facilities for their Bachelor of Science in Mechanical Engineering program. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Corporation is executed to implement the Agreement for the Development of Facilities for the Bachelor of Science in Mechanical Engineering Program between the Corporation and Texas A & M University -- Corpus Christi ( "Agreement "). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Agreement for the Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City's Council. 5. Effective Date. The effective date of this Project Service Agreement is the latest date that either party executes this Agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision. phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. Page 2 of 3 Project Support Agreement 4A -City -- TAMU -CC BSME 10312887— b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation 'Angel R. Escobar Eloy Salazar Interim City Manager Chairperson Date: Date: Attest Armando Chapa City Secretary Approved as to Legal Form: 2008. R. Jay Reining First Assistant City Attorney for City Attorney Page 3 of 3 Project Support Agreement 4A -City -- TAMU -CC BSME 10312838— 26 CITY COUNCIL AGENDA MEMORANDUM November 11, 2008 AGENDA ITEM: RESOLUTION ADOPTING THE CITY OF CORPUS CHRISTI'S STATE AND FEDERAL LEGISLATIVE PROGRAM FOR 2009. ISSUE: Prior to the commencement of each state legislative session, the City of Corpus Christi staff, working with input from the City Council, key stakeholders from the community, the Texas Municipal League, National League of Cities and our legislative consultants in Austin and Washington, prepares a recommended legislative program for City Council consideration and approval. The legislative program, after consideration and approval by the City Council, is then transmitted to our local legislative delegation and forms the basis for the City's activities during the 140 days of the State legislative session as well as our ongoing efforts in Washington. REQUIRED COUNCIL ACTION: Approval of the Resolution CONCLUSION AND RECOMMENDATION: Staff recommends approval of the Resolution in support of the proposed state and federal legislative program for 2009. udy Ga a Director o ntergovefnm tal Relations -291- CITY OF CORPUS CHRISTI r . City of Corpus Christi State and Federal Legislative Program for 2009 Presented by Rudy D. Garza Director, Intergovernmental Relations November 11, 2008 -292- Introduction and 81st Legislative Session Outlook Prior to the commencement of each legislative session, the City of Corpus Christi staff, working with input from the City Council, key stakeholders from the community, the Texas Municipal League, National League of Cities and our legislative consultants in Austin and Washington, prepares a recommended legislative program for City Council consideration and approval. The legislative program, after consideration and approval by the City Council, is then transmitted to our local legislative delegation and forms the basis for the City's activities during the 140 days of the State legislative session as well as our ongoing efforts in Washington. In each legislative session, the number of bills that are introduced is massive. For example, in the last regular legislative session (2007), there were more than 6300 bills and resolutions introduced in the House and Senate, approximately 1,500 passed, with over 1,200 of the bills City - related, of which 120 passed. A large percentage of the efforts by cities throughout the State are continually directed at simply preventing legislation from passing which would negatively impact cities. Over the last few legislative sessions, the City of Corpus Christi, with the support of our local legislative and congressional delegations, has had very good success in not only stopping bad bills from passing, but also in the proactive passage of legislation important to our community. The upcoming 81St Legislative session will undoubtedly consider many issues that are extremely complex, many of which could be potentially detrimental to cities. The session's outlook appears challenging at this time with a large number of city related issues under review by legislative committees. During the upcoming session we anticipate addressing proposals on a number of city programs ranging from revenue and taxation to utility and transportation to land use and development related issues. In addition, while major water legislation was filed and passed during the waning hours of the last legislative session, water related legislation will continue to be a focus of our efforts due to the fact that Corpus Christi has adequately planned, made preparation for, and paid • for water resources sufficient to serve our citizens, which we must protect. As in the past, the City anticipates working very closely with our legislative delegation. We will also continue to work closely with the Texas Municipal League (TML) and the very active lobbying teams of the largest cities in Texas, of which Corpus Christi is a participating member. The following legislative program is broken down into sections each representing a major part of municipal government beginning with a general statement of operating procedures. A separate section of Federal legislative issues is included at the end of the program and is considered to be a part of our overall legislative efforts. At the federal level, we utilize the National League of Cities for information and joint advocacy when appropriate. The execution of this legislative program is coordinated by the Director of Intergovernmental Relations, under the general direction of the City Manager upon approval of the program by the City Council. The Mayor and City Council Members, as well as members of City staff including the City Manager, Police and Fire Chiefs, the City Attorney and her staff, and key department heads may be called upon to testify in Austin and in Washington, in support of this Iegialg program as necessary. I. GENERAL POLICY AND PROCEDURES a. The City will SUPPORT legislation and /or administrative actions that: 1. Protect and enhance City revenues. 2. Reduce costs to the City. 3. Support local control. 4. Protect policies previously established by City leadership through the Charter, ordinances, resolutions, and master plans. 5. Provide increased educational opportunities for the citizens of Corpus Christi and the Coastal Bend region. 6. Increase economic development opportunities for the Coastal Bend region. b. The City will OPPOSE legislation and /or administrative actions that: 1. Undermine the principle of home rule and local control by the City. 2. Result in the loss of revenue or negatively impact potential revenue growth to the City. 3. Diminish the authority of cities to regulate and manage their growth and development. 4. Nullify or undermine the City's policies contained in existing provisions of the Charter, ordinances, resolutions, and master plans, unless such changes expand the City's ability to manage its own affairs. 5. Impose unfunded mandates that require any expenditure by the City unless all costs, including administrative as well as direct costs, are fully reimbursed by the mandating governmental entity. 6. In any way endangers, nullifies, or transfers any of the City's water rights. c. The City Council will determine the City's position on all legislative issues. d. The City's Boards, Commissions, and Advisory Groups may not represent in oral testimony or in writing a position on proposed legislation or administrative action unless that position is first approved by the City Council. Positions on legislative and /or administrative actions originating outside of the City Council, but within the City's governmental framework, shall be submitted to the City Manager for review prior to consideration by the City Council. -294- f. The legislative or administrative positions herein approved, and others separately approved by the City Council, shall be communicated to the legislative and congressional delegations, to the Texas Legislature and U.S. Congress, in general, and /or to the appropriate legislative committees, committee members, and administrative agencies or to others by the Mayor, the City Manager, the Director of Intergovernmental Relations, other City staff, legislative liaisons and others designated by the City Manager. Where possible and where there is a commonality of interest, the City will coordinate its legislative and administrative program with other political jurisdictions and other key community stakeholders in the region and provide assistance to those entities. 9. h. The city will support the legislative programs of the Texas Municipal League and the Texas Municipal Retirement System, except to the extent a conflict exists with any policy or legislative position herein. It is recognized that this policy will often be implemented in the context of great numbers of voluminous proposals being considered within short time periods. City representatives, under the direction of the City Manager, shall be authorized to act on behalf of the City consistent with the necessarily broad policy concerns set forth in this policy. j. In this policy, items are classified under three levels of importance, Priority, Actively Support, and Endorse, as follows: 1. Priority means that the City will actively pursue and support (or oppose, as specified) the policy including, if necessary, seeking introduction and passage of legislation. This would include purely local Corpus Christi bills, as well as very important legislation of statewide application. 2. Actively Support means the City will aggressively attempt to obtain passage of a measure if it is introduced by some other entity (or actively oppose, as specified). 3. Endorse means that the City will make its (support or opposition) known. but will not actively pursue the issue. 1I. FINANCIAL INTEGRITY PRIORITY a. Franchise Fees. The City unalterably opposes any measure which would reduce the City's existing franchise fees, the growth of those franchise fees, or its ability to charge franchise fees, and any measure which, would prevent the City from requiring utilities to bear 100% of costs associated with relocations of utilities required by the City or which would impair City regulation of use of rights -of -way. Franchise fees are essential to continuation of basic services. A vote to reduce franchise fees would be a vote to increase local ad valorem taxes or reduce basic local services such as police, fire, roads, and parks, and would constitute a gift of public property for private purposts295— b. Hotel Occupancy Tax. The City supports expanding eligible expenditures under the Padre Island Hotel Occupancy Tax to include Packery Channel related projects. ACTIVELY SUPPORT b. Liability Law. The City supports legislation to reduce potential liability of municipalities and municipal employees for torts and other actions and opposes legislation which would increase such liability. c. Prompt Payment Statute. The City opposes legislation increasing the. requirements of the prompt payment statute. d. Indemnity Provisions. The City opposes legislation limiting or prohibiting indemnity provisions in public works contracts. e. Mandated Fees. The City opposes legislation which would impose requirements of a city to raise municipal fees and remit those revenues back to the state, unless use of the monies would be dedicated for programs beneficial to the City. ENDORSE f. Municipal Court Costs. The City opposes additional State or County fees or court costs on municipal courts. g. Sale of Tax Liens. The City supports legislation to authorize cities to sell tax liens. III. ESSENTIAL INFRASTRUCTURE PRIORITY a. Water. 1. Protection of Water Rights. As its highest priority, the City supports legislation to be adequately compensated for and to protect the City's water supply and water rights, and to enable the City to expand its water supply and rights, and strongly opposes legislation which would diminish or challenge such water supply or water rights or the City's ability to expand such supply or rights. 2. Desal and other Water Development Projects. The City supports legislation to provide special set -aside funding for desalination programs and other technology innovation projects for water source development. 3. Aquifer Storage and Recharge. The City strongly supports the ability of cities to form, operate, and expand aquifer storage and recharge districts under recently passed wa&gi Qonservation legislation. ACTIVELY SUPPORT b. Transportation. 1. Resources. The City strongly supports legislation assuring the equitable allocation of transportation resources from the State, particularly legislation which impacts continued development of the I - 69 corridor along U.S. 77 linking Corpus Christi to both Houston and the Lower Rio Grande Valley. 2. Funding for Construction and Maintenance. The City supports legislation that would increase the level and availability of state transportation funding for construction and maintenance and restoration of funding cuts in response to major budgetary shortfalls at TXDOT during the interim of the 80th legislature. 3. Sunset. TXDOT is up for Sunset review during the 81st legislative session. The City will be monitoring proposals by the 81st Legislature to restructure TXDOT and will support proposals that benefit the Corpus Christi District and oppose proposals to our detriment. In addition, the City supports increasing local input into the decision making process at TXDOT. c. City Streets /Maintenance. Maintenance of City streets throughout the State is chronically under funded. The City strongly supports legislation which would allow cities to have additional local revenue sources specifically earmarked for street maintenance in our city. IV. COMMUNITY PROTECTION AND DEVELOPMENT PRIORITY a. Development. The City strongly opposes legislation which would erode municipal authority to regulate development for the public safety, health and welfare, including, but not limited to. locations of manufactured housing, annexation, condemnation. platting. zoning. extraterritorial jurisdictions and building and housing codes. b. Regulation of Location of Manufactured Housing. The City opposes legislation that would erode the authority of cities to regulate the location of manufactured housing. c. Annexation Authority. The City opposes legislation that would erode current annexation authority. d. Alcoholic Beverage Regulation. The City supports legislation to protect and strengthen city authority to regulate alcoholic beverage sales and consumptions and to provide flexibility to cities to undertake and contract for alcoholic beverage sales in city -owned facilities. —297— ACTIVELY SUPPORT e. Affordable Housing. The City supports affordable housing initiatives that do not undermine the City's regulatory authority to protect the public health, safety, and welfare. f. Building Codes. The City supports maintaining and expanding municipal authority to select building codes and make local amendments as determined by local city councils, and opposes legislation eroding such authority such as by mandating adoption of particular codes. g. Nuisance. The City supports legislation to strengthen municipal enforcement authority with respect to nuisances. h. Condemnation Authority. The City opposes legislation that would erode condemnation authority. i. Dune Protection. The City supports city administered dune protection within a city's limits and ETJ. The City also supports expanding existing dune protection programs to meet the ecological and public safety needs of our specific area to address the narrowing of beaches along North Padre Island beaches. Redemption Periods. The City supports a further reduction in the redemption period for tax foreclosed properties in order that a more aggressive infill redevelopment program may be established. J• ENDORSE k. Group Homes. The City supports legislation to protect and strengthen city authority to regulate group homes. V. CHILDREN AND YOUTH ACTIVELY SUPPORT a. Juvenile Crime. The City supports legislation to reduce crime and delinquency among children and youth, to promote their development and well being, and continued funding of Community Youth Development programs. b. CHIP funding. The City supports expansion of the Children's Health Insurance Program to the greatest extent possible so that no child is left uninsured in the State of Texas. —298— VI. EDUCATION PRIORITY a. Higher Education. Texas A &M University — Corpus Christi. The City supports legislation to advance and obtain sufficient support for higher education in this area, especially legislation to enable Texas A &M University- Corpus Christi to continue to operate as a strong and viable four -year university, including special item funding for the establishment of a mechanical engineering degree program through legislation and /or administrative action. Del Mar College. The City supports legislation to insure adequate funding for the operation and programs of the Del Mar Junior College District, including Full Formula Funding and expansion of the District to adequately reflect its service area. b. Support of Local School Districts. In general, the City supports the legislative programs of local school districts leading to enhancement of educational opportunities for the citizens of Corpus Christi. c. Support for Job and Vocational Training. The City strongly supports the continuation and expansion of the Skills Development Fund. In addition, the City supports the efforts of vocational training in our public schools as well as programs at Del Mar. d. Dropout Prevention. The City strongly supports legislation for programs and funding to address our area's high dropout rate. VII. PUBLIC SAFETY AND HEALTH PRIORITY a. Emergency Service District. The City supports legislation permitting 1/8¢ over the 2¢ local Sales Tax cap for Emergency Service Districts or enabling legislation to utilize capacity under the sales tax cap for this purpose when it becomes available. b. Vehicle Registration Fee. The City supports legislation to amend current law to allow for an increase in optional vehicle registration fees for programs such as child safety and allow cities to impose the fee. c. Crime Control District. The city supports legislation or administrative action that clarifies that for crime control districts, services subject to the 1/8 cent sales tax assessments includes telecommunications and electric services. —299— ACTIVELY SUPPORT d. Photographic Traffic Signal Enforcement: The City opposes legislation that would prohibit or hamper cities effectively employing photographic traffic signal enforcement. e. 911 Emergency Service Systems. The City opposes legislation that would hinder the City's operation of its 911 system, which would inequitably affect the Corpus Christi area on 911 funding, or which would limit its ability to charge an appropriate fee for 911 services. f. Court Appearance. The City strongly opposes any effort to allow a defendant to waive their personal appearance at a Municipal Court Trial other than those who also waive their right to a jury trial. Public Smoking Ban. The City supports statewide efforts to protect the public from second hand smoke by strengthening the law to prohibit smoking in indoor public areas and worksites. 9. h. Graffiti Crimes. The City supports legislation that strengthens penalties for property damage associated with graffiti crimes, expansion of the graffiti definition to include all types of paints, and increased funding for graffiti removal programs. ENDORSE i. Felony Forfeitures. The City opposes legislation which would detrimentally change the existing felony forfeiture statute. VIII. UTILITIES PRIORITY a. Compensation for Right -of -Way Use by Utilities. The City strongly supports the ability of a city on behalf of its citizens to be adequately compensated for the use of city lands and right -of -ways by utilities. b. Right -of -Way Control. The City opposes legislation that would erode the authority of cities to manage and control their rights -of -way and other public property. c. Video /Cable Regulation. The City opposed the ability of a video /cable operator to cancel existing franchise agreements and supports an adequate compensation for the use of city rights -of -way as well as local oversight of video /cable with regard to service quality and customer service. d. Solid Waste. The City opposes any legislation that would negatively affect the financial viability of municipally owned and operated solid waste collection and disposal facilities. —300— e. WiFi. The city opposes any legislation that prohibits or obstructs the ability of a city to provide WiFi services for its citizens. IX. ENVIRONMENT PRIORITY a. Air Quality. The City supports continued allocation of financial resources for near non - attainment areas, which is essential for those communities striving to remain within recently reduced federal guidelines for air quality. Specifically, the city will protect funding for our Pollution Prevention Partnership by opposing efforts at the staff level of the TCEQ to dilute funding through Rider 8, by expanding programs to additional communities without adequate funding to support such an expansion. With adequate funding, the city could support such an expansion. Additionally, the city supports continued local input over air quality programs. b. National Estuary Program. The City of Corpus Christi actively supports State funding of the local National Estuary Program. It is an important priority that the program continue to be funded, possibly at an elevated level. c. Regional Water Planning. The City supports continued funding of regional water planning and expansion of innovative programs to enhance water source development and funding initiatives under the state water plan. d. Parks and Recreation Funding. The City strongly supports increased funding for the Texas Recreation and Parks Account Local Park Grant Program. ACTIVELY SUPPORT e. Beach Cleaning. The City supports full State funding of the beach cleaning program. f. Oil Spill Response Program. The City supports continued and expanded State support for the Oil Spill Response Program and the location of a major center in the Corpus Christi area. Drainage / Stormwater. The City opposes further unfunded mandates with respect to drainage and stormwater, and supports increased State programs to assist local communities in solving such problems. h. Solid Waste. The City supports legislation that would enhance its ability to maintain adequate funding for the operation of its present and future landfills or that would strengthen city authority over landfill operations, and the City opposes legislation that would undermine adequate funding of city landfills, impose regulations more stringent than federal law, or erode city authority over landfill operations. g. —301— X. ECONOMIC DEVELOPMENT PRIORITY a. Military. The City supports continued funding and legislative support of the Texas Military Preparedness Commission, increased funding for BRAC related activities, and other efforts to preserve existing military bases in Texas and specifically those in the coastal bend region. b. Economic Development Areas. The City strongly supports legislative initiatives to provide stronger and more powerful economic development tools for local, State or federally created or designated economic development areas. c. Texas Enterprise Fund (TEF) and Texas Emerging Technologies Fund (ETF). The City supports a more regional and industry specific approach to the awarding of funds through the Governor's TEF and ETF programs, as established by the legislature, so that all communities in Texas, both large and small, benefit from these programs. d. Texas Enterprise Zones. The City strongly supports the creation of three additional enterprise zone slots per biennium above the current allocation of six slots as allowed by the Federal Government due to our community reinvestment zone designation. ACTIVELY SUPPORT e. Economic Development Authority. The City opposes legislation which would erode municipal economic development authority f. Texas Public Libraries. The City supports legislation that would increase support of Texas public libraries through TexShare and the Library of Texas for improved access to electronic information. g. ENDORSE Workforce Development. The City supports local control over employment training programs, continuation of Smart Job training grants and the Skills Development Fund, and State funding for adult literacy programs. XI. EFFICIENT ADMINISTRATION PRIORITY a. Uniform Election Date. The City supports a clarification to the existing election code to ensure a valid election is held in Corpus Christi in accordance with guidelines established by the Secretary of State and Comptroller of the State of Texas with respect to both ballot rsTires and officer elections for the April election in odd numbered years. In addition, we support extending this clarification for all governmental entities including Del Mar College and Corpus Christi area school districts in establishing a valid uniform election date for our community. b. Open Meetings Act. The City opposes making the Open Meetings Act more restrictive and supports a clarification to the Open Meetings Act to allow for Mayor and Council Member Updates that do not involve any action being taken by the Council in response to an opinion on the issue by the Texas Attorney General. ACTIVELY SUPPORT c. Sales Tax Exemption. The City opposes legislation that would enact a sales tax exemption that isn't a local option exemption. d. Property Tax Exemption. The City supports legislation that creates a property tax exemption for oil, gas and mineral interests that are owned by a municipality. e. Delinquent Sales Tax. The City opposes legislation that would abolish the authority of cities to sue for delinquent sales taxes or to join in an attorney general's suit. f. Notification of Delinquent Amounts of Sales Taxes. The City opposes legislation that would repeal the requirement that the comptroller notify cities of delinquent amounts of sales taxes. Rate Case and Complaint Dockets. The City supports legislation that would establish the right of cities to recover expenses related to utility rate cases and complaint dockets within a reasonable time and require utilities to recover rate case expenses out of stockholders' equity when a utility rate case is found to be unjustified. h. Water or Wastewater Permittees Fees. The City opposes legislation that would increase fees paid by water or wastewater permittees. Sales Taxes. The City supports allowing the pledge of local sales tax revenues for other priorities and financial obligations outside of economic development, as determined by the local governmental entity. g. —303— FEDERAL LEGISLATION /ACTION A. CDBG /HOME Funding. The City has found Federal funding of the CDBG and HOME Program to be essential to the continued well being and revitalization of the City. Therefore, the City strongly supports continued and increased funding for the programs. B. Renewal Community Designation. As one of only 40 communities in America, and one of two communities in the State of Texas with such a designation, the City supports the reauthorization of the Renewal Community Program through HUD in 2009. C. Diversion to State. The City supports direct Federal funding of programs to cities and generally opposes funding to cities being routed through State government. In the event such programs continue to be diverted through the state, reporting periods for both governmental entities should be consistent. D. Homeland Security. Due to greatly increased costs of local security activities, the City supports continued and increased direct federal funding of homeland security to cities and expansion of programs to enhance a federal agency presence in the Coastal Bend area. E. Military. The city strongly supports legislation /funding /actions to maintain and expand our local areas' military facilities as one of the City's highest priorities, specifically funding for expansion plans at NAS Corpus Christi /CCAD and the redevelopment of Naval Station Ingleside. F. Coordination with Local Agencies. Whenever possible and particularly where there is a commonality of interest, the City will support local agencies and organizations such as the County, RTA, the Port, our educational institutions and others in their efforts to secure favorable legislation and /or funding for the betterment of our community at the federal level. G. Protection of Right of Way Fees and Authority. The City strongly supports its traditional authority to charge rental value to private companies for the use of valuable public rights of way, and to reasonably regulate the rights of way for the benefit of the public. The City strongly opposes any dilution of its traditional authority. H. Water Resources Development Act. The City supports additional funding for channel maintenance and development of recreational areas surrounding the Packery Channel in FY 2009. The City also supports funding programs to study erosion and nourishment programs for targeted beach areas of North Padre Island. Transportation. The City supports action by the federal government to restore and reauthorize sufficient funding for the Highway Trust Fund, increase programs and investment in rail infrastructure, and support of public transportation systems in our country. —304— ATTACHMENT City of Corpus Christi Governmental Relations Consultant Biographies HiIlCo Partners (State Legislative Consultants): Dan Pearson is a widely recognized environmental expert. The former Executive Director of the Texas Natural Resource Conservation Commission (TNRCC), Pearson possesses vast expertise on a wide range of air, water, waste management and waste -water issues. Prior to heading up the TNRCC, Pearson served as Deputy Comptroller for eight years under former Texas Comptroller Bob Bullock. There, he was primarily responsible for developing the State's current tax system where he earned a reputation as a straight - shooting expert in state fiscal matters. Since joining HillCo, Pearson has been responsible for assisting a wide array of private sector clients as they navigate the bureaucratic administrative agencies and gaining them access to key lawmakers at the Capitol. Due to his reputation as an expert on environmental related issues, Pearson has been invited to participate in every major legislative debate dealing with air and water issues over the last decade. Snapper Carr joined HillCo Partners' Local Government Practice in 2006. Prior to is current role, he was the Legislative Counsel and Associate for the Texas Municipal League (TML) from 1998 to 2006, representing municipal interests before state and federal legislative, administrative and judicial bodies. While at TML, Carr earned a reputation as an expert in the fields of land usage, utilities, and open records laws. From 1994 to 1998, he was Chief Committee clerk for two Texas House committees; the Committee on State Affairs and the Committee on Land and Resource Management. He has also provided media and issue consulting services for numerous political and public relations campaigns in Texas. Carr is a graduate of The University of Texas at Austin, where he earned a Bachelor's degree in Communications and Government and a Doctor of Jurisprudence degree from the UT School of Law. Brandon Aghamalian is a public affairs consultant for HillCo Partners with expertise in economic development issues, property taxes, insurance, and homeland security issues. His primary focus is representing the needs of local governments before the Texas Legislature. Before joining HiIlCo Partners. Aghamalian was the Director of Governmental Relations for the City of Fort Worth from 2002 to 2006. Aghamalian has also worked as the Chief of Staff for then Representative Kim Brimer (R -Fort Worth) where he assisted in the passage of HB 1200, the Texas Economic Development Act, which provides incentives for capital intensive industries to build or expand in Texas. He has also served as the Director for the House Committee on Business & Industry and was the Legislative Director for Rep. Todd Smith (R- Euless). Aghamalian is a graduate of Texas State University in San Marcos where he was an NCAA scholarship track athlete and student body vice - president while he earned a Bachelor's degree in accounting. In 2000, he earned a Doctor of Jurisprudence from the UT School of Law and a Masters of Public Affairs from the LBJ School. -305- Meyers & Associates (Federal Leuislative Consultants): Larry Meyers has over 34 years of experience since coming to Washington with then Senator Lloyd Bentsen (D -TX), former chairman of the Senate Finance Committee, and former Secretary of the U.S. Treasury. After four years with the senator, serving as legislative director, he received an appointment in the Carter Administration being named Director for Congressional Affairs - U.S. Department of Agriculture, responsible for both USDA and White House lobbying activities. He began independent consulting in 1981, and in 1989 was named by Beacham's Guide to Key Lobbyists as one of the top 125 lobbyists out of the several thousand in Washington. For the last twelve years, he has served as guest lecturer at the National Defense University on the topic of "lobbyists and lobbying." Larry also serves on the Board of Directors of Washington First Bank in Washington, D.C. The Corpus Christi community has retained Meyers & Associates since 1993 and past involvement of the firm with the efforts of the City of Corpus Christi includes: the 1993 and 1995 BRAC processes; protection of the Naval Air Station; Choke Canyon Dam debt delay (credited by city financial staff at a $20 million savings); the Mary Rhodes Pipeline; federal funds for the acquisition of the site for the American Bank Center and Bayfront Plaza expansion; and the North Padre Island Project (Packery Channel) authorization and funding. In each case, the firm's work with the members of the Texas congressional delegation representing Corpus Christi were critical to each project's success. The firm also represents Corpus Christi A &M for the purpose of facilitating federal research dollars to come to the university. —306— RESOLUTION ADOPTING THE CITY OF CORPUS CHRISTI'S STATE AND FEDERAL LEGISLATIVE PROGRAM FOR 2009. WHEREAS, the 81St Texas Legislative Session of the Texas Legislature convenes in January 2009; WHEREAS, a new Congress will convene in January 2009; WHEREAS, both legislative bodies will consider many measures that may effect the City of Corpus Christi; and WHEREAS, it is necessary to provide guidance for the City's officers and representatives in conducting the City's legislative efforts and relations; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council adopts the City of Corpus Christi State and Federal Legislative Program, which is attached to and incorporated into this resolution. SECTION 2. The Legislative Program remains in effect until amended by the City Council. SECTION 3. The City Manager is directed to distribute this Legislative Program to the local legislative delegation and solicit their advice and support. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED: 3`d day of November. 2008. R. Cay7eining First Assistant Ci y Attorney For City Attorney 2009 Legislative Program Resolution —307— Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon 2009 Legislative Program Resolution —308— 2 U 0 As Genera egislation and /or administrative actions that: The City SUPPORTS • o t \ k o a) a)2 /� 0 o \23E o2 al 0 \ §/ $� §® k _ & »/&22 kc CO f 0)2kk� /k§ k 2 _c kfE§� At0 e 02a■ 0�2 k k " \ \2777 M�� / \ 7 -a �v fa %k cin �Q■ a) q/ # occ,es Eva £ EE C °_� -�� c§= = o � g / '7 � �� § = » 0) 02 Z 0¢22! ■t �2- B 5o ■ mm 0) a —mom ■ ■� £ @& g a \.222 §& �m� c� ? nt =gk %� I_ §2 a \ . -6 a) : .. @ 0 10 --- -- °° \«� \ /�= ' 00 RI to 0 \ \ 0._ L... � _r �� e \° -0 2" §0� 071 2 2\ �\k / §�§ ��� _ ° c \c�i� -o oc± 2 f Et ■ 2�22�� v- 2 02 c /8 a) ' 2 / e 2� 0 o co ® ¥to a o $ c_ =a) ic=at) 0. §.- > 2E / ¥ /5 /EL2§ *� .6 5, \ \§ m$\e�C� o�� t0 •° 2° " 0 0. ■2 §f$k $: m k »tEae22 c�� t ' �_- ■e q« G o W 5[-0 a w o §. 2§2 /k§$ 0 / \7V 2 ■ co't5am 11 w£a'ud §2 = o t° 0° O /k °k %f •tea a= a m E- 'Cr) r. t2 o- � 8 o =a2 =3' 22\58 t -0� �I /0_%a.2 0 oE222e ci�L- ■ 0 0 0 0 0 / 0 0 0 O 0 / F k • ion of Texas 0 W J r a) co a) Lc1 0) w E U C � U -� a) a) N .a -p EO ti L O I- X 0) O C a) 0 O w~ 7 N N N L y L O m 0 U 0 1.- .0. 0 .0 L O 9 N o C U c 0) y a) 3 -O0 p a N o m O C O` L O C c •5 O 0 a) .. 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"6 .° c O) as ° ° N Q 0 as U U U ;1' _C = Z I-w0 2 ❑ • 27 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution of the City of Corpus Christi City Council requesting the members of the 81S1 Legislative Session of the State of Texas support legislation that increases funding for the Texas Recreation & Parks Account Local Park Grant Program (TRPA) and the Texas State Park System; and requiring that all TRPA funded park projects be subject to the established TPWD competitive scoring system. ISSUE: Continued cutbacks in appropriations for State park and historic sites have resulted in a backlog of deferred maintenance issues, park closures, reduced hours and days of operation, staff layoffs, and the conversion of some parks to day use only. Important visitor services have been eliminated, regardless of the growing need for new parks due to the State's expanding population and extensive tourism industry. The development of parks encourages and promotes public health, economic development, job creation, and education, as well as improves citizens quality of life and contributes to the juvenile crime prevention. REQUIRED COUNCIL ACTION: It is requested that a copy of this resolution with appropriate names affixed be presented to the Governor of Texas and the leadership of the 80th Texas Legislature. PREVIOUS COUNCIL ACTION: none BOARD /COMMISSION ACTION: The Park and Advisory Board approved recommendation of this resolution to City Council at their regular meeting on September 13, 2006 regular meeting. CONCLUSION AND RECOMMENDATION: Staff recommends approval of this resolution. /� Sally Gavlik, Director Parks and Recreation Department Attachments: Background Information —311— BACKGROUND INFORMATION The Texas Parks and Wildlife Department (TPWD) administers the Texas Recreation and Parks Account Local Park Grant Program (TRPA) and manages 114 State parks and historical sites in Texas. TPWD has a separate account in their general revenue fund referred to as the TRPA for the purpose of providing matching grants to political subdivisions for parks and recreation projects. The matching grants provided by the TPWD are utilized for the planning, acquisition, and development of local parks, recreation and open space areas to be owned and maintained by political subdivisions. Funds granted to political subdivisions under the TRPA guidelines have funded 1,029 projects of the 2,851 submitted over 25 years delivering over $623 million dollars to the Texas economy. Political subdivisions throughout the State of Texas depend on grants from TPWD through the TRPA to stimulate the acquisition and development of parks and recreational areas for the benefit and enjoyment of their citizenry. The TRPA and State parks are funded from sales tax on sporting goods and the development of new parks stimulates the purchase of sporting goods. —312— Page 1 of 3 RESOLUTION OF THE CITY OF CORPUS CHRISTI CITY COUNCIL REQUESTING THE MEMBERS OF THE 81st LEGISLATIVE SESSION OF THE STATE OF TEXAS SUPPORT LEGISLATION THAT INCREASES FUNDING FOR THE TEXAS RECREATION & PARKS ACCOUNT LOCAL PARK GRANT PROGRAM (TRPA) AND THE TEXAS STATE PARK SYSTEM; AND REQUIRING THAT ALL TRPA FUNDED PARK PROJECTS BE SUBJECT TO THE ESTABLISHED TPWD COMPETITIVE SCORING SYSTEM. WHEREAS, the Texas Parks & Wildlife Department ( "TPWD ") administers the Texas Recreation & Parks Account Local Park Grant Program ( "TRPA ") and manages 93 State parks and historical sites in Texas; and WHEREAS, TPWD has a separate account in their general revenue fund referred to as the TRPA for the purpose of providing matching grants to political subdivisions for parks and recreation projects; and WHEREAS, the matching grants provided by the TPWD are utilized for the planning, acquisition, and development of local park, recreation and open space areas to be owned and maintained by political subdivisions; and WHEREAS, funds granted to political subdivisions under the TRPA guidelines have funded 1,495 projects of the 2,931 submitted over 29 years delivering over $792 million dollars to the local Texas economy; and WHEREAS, political subdivisions throughout the State of Texas depend on grants from TPWD through the TRPA to stimulate the acquisition and development of parks and recreational areas for the benefit and enjoyment of their citizenry; and WHEREAS, the TRPA and State parks are funded from sales tax on sporting goods and the development of new parks stimulates the purchase of sporting goods; and WHEREAS, the maintenance and improvements of State park and historic sites and the addition of new parks is a priority to Texas due to the State's expanding population and extensive tourism industry; and WHEREAS, the development of parks encourages and promotes public health, economic development, job creation, education; corporate relocations, an improved quality of life, and juvenile crime prevention; and WHEREAS, funds are needed for major repairs at state parks and for the acquisition and development of parks and recreation facilities; and H ]LEG- DIR \Lisa\2008 Resolutions \TRPA81 st leg Resalution.tloc —313— Page 2 of 3 WHEREAS, it is the desire of this City Council that a copy of this resolution with appropriate names affixed be presented to the Governor of Texas and the leadership of the 81st Texas Legislature. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That members of the 81st Legislature of Texas seek passage of legislation maximizing the use of revenue from the sporting goods sales tax to increase funding for parks and recreation programs fairly for both Local and State parks and that all TRPA funded park projects be subject to the established TPWD competitive scoring system. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED LOG4- 31 , /oar B .,-. Lisa t City Attorney for the City Attorney H: \LEG- DIR \Lisa\2008 Resolutions \TRPA81st leg Resolution.doc —31 4— Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon —315— 28 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution authorizing the City Manager, or designee, to submit a grant application to the Environmental Protection Agency in the amount of $400,000 for a three year community-wide Brownfields Assessment Program. ISSUE: The City of Corpus Christi Environmental Services Department would like to apply for an Environmental Protection Agency (EPA) Brownfields Assessment Grant on November 14, 2008 to establish a community-wide program for identifying and assessing properties which could be redeveloped or reused as productive resources while gaining economic, environmental, health and social benefits. There is not a required City funding match. REQUIRED COUNCIL ACTION: Approval of the resolution to submit grant application. PREVIOUS COUNCIL. ACTION: None. The City of Corpus Christi has not applied for a Brownfields Assessment grant. FUNDING: N/A RECOMMENDATION: City staff recommends the City Council approve the resolution required by the grant application. Attachments: Background Information —319— Respectfully Submitted, Peggy L. Sumner, CHMM, CFM Environmental Services Director BACKGROUND INFORMATION Subject: Environmental Protection Agency (EPA) Brownfields Assessment Grant A Brownfield site is defined as real property in which the expansion, redevelopment, or reuse may be complicated by the presence or potential presence of hazardous substances, pollutants, contaminants, controlled substances, petroleum or petroleum products. Brownfields may be abandoned or simply under - utilized properties that result in the Toss of potential tax revenues and job opportunities along with the ongoing concern of potential environmental health risks. As part of the US EPA's initiative to reuse and revitalize contaminated property, the Brownfields Program provides funds and technical assistance to states, communities and other stakeholders in economic redevelopment to work together to prevent, assess, safely cleanup, and sustainably reuse Brownfields. Since the Brownfields Program inception in 1996, EPA Region 6 grantees have been awarded more than $50 million in Brownfields competitive grants. Over 1000 sites have been assessed, 11,600 jobs created, and $2.4 billion leveraged in redevelopment in the five state region. Very few of those available funds have been used in South Texas outside of the Houston or San Antonio metropolitan areas. EPA Region 6 staff has encouraged the City of Corpus Christi to apply for a three year Brownfields Assessment Grant to gain funds in order to inventory, characterize, assess and conduct planning (including cleanup planning) and coordinate community involvement related to Brownfield sites in our community. An eligible entity may apply for up to $200,000 to assess sites contaminated by hazardous substances, pollutants, or contaminants (including hazardous substances co- mingled with petroleum) and an additional $200,000 to address sites contaminated by petroleum for a total of $400,000. The grant applications may be combined to include both types of assessments and the awarded funds will cover direct administrative costs and consulting professional services contracting. Should the City of Corpus Christi be awarded the grant, subsequent clean up grants may be applied for to assist in the clean up and redevelopment costs of specific locations. —320— RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO SUBMIT A GRANT APPLICATION TO THE ENVIRONMENTAL PROTECTION AGENCY IN THE AMOUNT OF $400,000 FOR A THREE YEAR COMMUNITY -WIDE BROWNFIELDS ASSESSMENT PROGRAM. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager, or designee, is authorized to submit a grant application to the Environmental Protection Agency in the amount of $400,000 for three year community -wide Brownfields assessment program. SECTION 2. The City Manager, or designee, may accept, reject, agree to alter the terms and conditions, or terminate the grant, if the grant is awarded to the City. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED: 20th day of October, 2008. R. Jay FjCeining Fir t Assistant City Attorney For City Attorney Brownfields grant resolution 10202008 —321— Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Brownfields grant resolution 10202008 —322— 2 29 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Presentation of Audit Results for the Corpus Christi Firefighters' Retirement System. STAFF PRESENTER(S): Name Title /Position Department 1. Constance P. Sanchez Interim Director Financial Services 2. 3. OUTSIDE PRESENTER(S): Name Title /Position Organization 1. Mark Randall Executive Vice President Gabriel, Roeder, Smith, & Co. 2. 3. BACKGROUND: The Texas Legislature passed HB 2664 in the summer of 2007 which went into effect September 1, 2007. The bill requires Texas public pension plans with assets totaling at least $100 million (excluding State funds like the Texas Municipal Retirement System (TMRS)), to have an independent actuary perform an audit every 5 years of the valuations, studies, and reports, most recently prepared by the pension fund. Pension plans affected by this bill (which the Corpus Christi Firefighters' Retirement System Fund does), must have their actuarial audits conducted no later than September 1, 2008 - with the governmental entity for which the public retirement system is responsible for, selecting the actuary and for paying all costs associated with preparing and distributing the audit. —325— The bill states that the actuary conducting the audit must provide the retirement system with a preliminary draft of the report within 30 days of the audit completion. After that, the retirement system has up to 30 days upon receipt of the draft to add a response which can accompany the final audit report. Once the report if final, then the governmental entity must post on the agenda before its next regularly scheduled open meeting that they intend to present and review the final audit results and are obligated to provided a printed copy of the final audit results to all who are attending the meeting. The governmental entity is also responsible for submitting the results of the audit to the State Pension Review Board. At December 31, 2007, net assets held in trust for pension benefits by the Corpus Christi Firefighters' Retirement System totaled $101,440,018. As such, State law requires that an independent actuary perform an audit of the last actuarial valuation, which was completed for the year ended December 31, 2006. (The next valuation will be for the year ending December 31, 2008.) The City of Corpus Christi hired Gabriel Roeder Smith & Company to conduct the audit. The draft audit report was sent to the City on August 25, 2008, and was presented to the Board of Trustees of the Corpus Christi Firefighters' Retirement System on September 25, 2008. The Board then had 30 days to respond but chose not to submit a formal response. Minor wording changes were made to the report, and the report was finalized on October 22, 2008. As required by State law, the final audit results are being presented and reviewed by the City Council at its next regularly scheduled open meeting. This presentation is made to comply with this provision of the law. Additionally, City staff will also submit the audit report to the State Pension Review Board. PowerPoint Supplemental Information -1 (Copy of Audit Report) -326- Constance P. Sanchez Interim Director of Financial Services actuarial valuation results Review of the actuarial assumptions and a) a) a) a) a) cn O a U o r o o Q-' — u a) cri o riCtl - w 2a) 1:.) o ▪ a) ctl CO vn cn (j_CI) O cn bt .tom c cu c�vua) - -,°'•° cl U v c� EO O can cr t O v V O a) co 078 et -0 �:,--1 - CZI cr O • 4%.,c1:1 Q-, cli a) bAbc E ! ct L et i—i O --'er+ O ;CI cn +' ct 6 v 2 CO OtO V +a V co +-) ¢., v< 4 c1 H 2 • . Less than 1% across all major measurements Percent Difference 0 N O e.c.c;N di O 0 O 0 N. O o N O Q Z Ur O CI N, Eft N th O m N Rudd and Wisdom N p CI Lar N �j o T O ci N Present Value of Benefits Active Employees Retirees and Inactives Total PVFB Normal Cost - % Funding Period (Years) cn rCi a) ct - Td 'CI ‘-1-1 E et a a) ct t Q) Cn a) In U 0 ��{'� u cn t +, O a.) CID +' 'o ,� ' ,n rD N a� u - O O +� '1-1 a) cz cz1 cn cu cn 711) a .1_, ,n .igi (78 ti R-8 A_) A_) A_) ‘A_i ccl (1) - 0 CI) u c1) ,n . - cn a) Q 0 • t 0 • 1--I (t a) 4 •- et a) - 0 ct • �• -��- -+ , cn V ct .+, as O a - es ft O O a � (it cip t u . 1c2i O t ccn et a) c� �▪ � v� ft V et up eti .� � t0��� a, -5 bi) R t ot R Ea' ta) • 1• 1 a� E n V aO O ccn chi) UuUet ft crit' .5 ci)< be be � t O. O p p Cn O u O + CD ccn U O t et ct ' �O trt > +a(." et " O oO.O✓, , ct O O cri O— $ ,� `n ell O a), O O � � cm?, u O ,_ 7:, 0� > c(iD • , + c� cn O O V +' c. a) ct cn (NI ct a -E sa) Tti 8 .p; i GRS Gabriel Roeder Smith & Company Consultants & Actuaries 5605 N. MacArthur Blvd. Suite 870 Irving, TX 75038 -2631 469.524.0000 phone 469.524.0003 fax wsvw.gabrielroedencom October 22, 2008 Ms. Constance Sanchez Deputy Director of Financial Services City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469 -9277 Re: Actuarial Audit of the Corpus Christi Fire Fighters' Retirement System Dear Ms. Sanchez: Gabriel, Roeder, Smith & Company ( "GRS ") was engaged to perform an actuarial audit of the Corpus Christi Fire Fighters' Retirement System ( "CCFFRS" or "the Plan"). The basis of the audit is the last three biennial valuations, ending with and concentrating on the valuation as of December 31, 2006. Legislative Requirement House Bill 2664 passed by the 80th Legislature of the State of Texas, requires an audit of the actuarial report and related studies of public sector retirement systems at least once every 5 years by an independent actuary, with the first review due no later than September 1, 2008. Project Scope The new legislation does not provide detailed guidance on the scope of review required for the actuarial plan audit, leaving that open to interpretation by the governmental entities responsible for conducting the process. The City of Corpus Christi has decided to limit the scope of the initial audit to a high level review of the actuarial assumptions and methods, including a comparison of actuarial gain and loss experience over the study period. However, due to the fact we had performed two other audit type projects on CCFF'RS in the last four years, we were able to perform a full replication of the December 31, 2006 valuation. Principal Conclusions • The work prepared by Rudd and Wisdom, Inc. in the three audited valuations and in all of the supporting information we received appears to be thorough, reasonable, and consistent with the Actuarial Standards of Practice. We have developed our findings through a thorough review of the supporting information and a teleconference with Mr. Robert May, FSA and Mr. Mark Fenlaw. FSA of Rudd and Wisdom, Inc. ( "the Actuary "). -331- Constance Sanchez October 22, 2008 Page 2 • We strongly agree with the Actuary that no benefit increases should be granted in the Plan without increased contributions. • In our opinion, Rudd and Wisdom, Inc. is valuing benefits consistently with the major provisions of the Plan Document. • In comparing valuation results based on GRS' actuarial valuation system with those based on other systems, we consider differences of 0 -5% to be acceptable. When we valued the Plan's liabilities on our system, using Rudd and Wisdom's assumptions, methodology and Plan interpretation, we were able to match to within 1% on all measurements. Therefore, we agree with the results of the latest actuarial valuation report as prepared by the Actuary. • The current economic assumptions generally reflect a 4.0% inflation rate. While we believe this rate may be slightly high, it certainly falls within the range of reasonable long term inflation assumptions. Because the old benefits payable from the Plan were not tied to inflation, an assumed high inflation rate for the most part only impacts the annual investment return assumption, meaning a high inflation assumption was less conservative than a lower inflation assumption. • The 8.00% assumed annual investment return rate consists of the 4.00% assumed inflation rate, plus a 4.00% net real rate of return. The 4.00% real rate of return is well within the acceptable range of reasonable assumptions. However, if the 4.00% inflation assumption is at the high end of the range, then the 8.00% nominal investment return expectation could be above the median expectation. It is also important to note that 8.00% is the most common investment return assumption used in the industry, especially by public retirement systems. • The demographic assumptions (mortality, disability, turnover, and retirement) are within acceptable range and are similar to assumptions used by other public sector plans we have audited. • The calculation of the Actuarial Value of Assets agrees with the stated methodology in the Actuary's latest actuarial valuation report. • Finally, we believe the Plan's recent benefit structure change to a benefit structure related to the salary of the individual employee was a positive change to the Plan from the perspective of the members and the employer. We understand this new benefit structure became effective July 1, 2007. As discussed in our previous correspondence package dated October 11, 2006, the old benefit structure forced periodic improvements to the benefit formula over time to keep pace with inflation. Due to the effects of inflation, without periodic benefit improvements, the income replacement provided at the time of retirement to the employee decreases over time. The new structure will create a more stable and predictable contribution pattern over the long term, as well as a more stable and predictable benefit level. Gabriel Roeder Smith Sc Company -332- Constance Sanchez October 22, 2008 Page 3 Side Remark We would like to especially commend the current Actuary for presenting an actuarial valuation report that includes three items which reflect significant effort above what would be considered meeting the "minimal" requirements of an actuarial valuation report. The three items are: 1. A lengthy discussion section at the beginning of the report which details the Plan's current situation. The industry appears to be moving toward actuarial reports which simply present standardized or boiler plate information with little or no commentary with regard to the specific individual plan. Other actuaries are moving in that direction because (1) it takes time to write commentary for each valuation performed, lowering the profit generated with each valuation, and (2) comments in the valuation may be misunderstood and used in various ways outside the scope of the valuation. The Actuary, in including a four -page client specific commentary at the beginning of the report and other comments throughout, clearly took the time to make the valuation meaningful and valuable to CCFFRS. 2. A comprehensive discussion explaining any changes since the prior valuation. Not only what the change was, but why and how that impacts the valuation. 3. A sensitivity analysis on the expectations of the next two valuations based on multiple investment returns or payroll growth. An actuarial valuation is a snap shot measurement of a very dynamic financial system. Clients should be careful in putting too much emphasis on the results from one valuation, either positively or negatively. By including a short sensitivity analysis of multiple expectations, the Actuary shows that future results are not certain, and provides the reader a better overall understanding of the funding process. Technical Verification Due to the prior work we had done with CC1F1-RS, we were able to perform a full replication of the latest valuation results. The following table summarizes the details of our recreation of Rudd and Wisdom's December 31, 2006 actuarial valuation results and the comparison between GRS' and the Actuary's results with respect to the following: • Present Value of Future Benefits (PVFB) • Unfunded Actuarial Accrued Liability (UAAL) • Normal Cost Percentage (NC %) ♦ Funding Period Gabriel Roeder Smith & Company -333- Constance Sanchez October 22, 2008 Page 4 PVFB Actives Retirees and Inactives Grand Total PVFB UAAL EAN -NC% Funding Period Rudd and Wisdom (1) $80,196 79.476 $159,673 $42,221 10.68% 23 Years (`000) GRS (2) $80,777 79.134 $159,911 $42,532 10.66% 23 Years Percentage Difference (3) 0.72% (0.43 %) 0.15% 0.74% (0.19 %) N/A In the aggregate, the above PVFB and NC% are within 0.25 %. Given these small differences, GRS is very satisfied that the liabilities of the Plan are being calculated correctly by the Actuary. Actuarial Assumptions In our formal actuarial audit performed back in the Spring of 2005, we reviewed assumptions and methods for internal consistency, reasonableness, and appropriateness. In that report, we found all of the assumptions and methods were reasonable and within the acceptable range. Because there have been no significant changes to the benefit provisions, no changes to the economic assumptions, and only moderate changes to the demographic assumptions prior to the December 31, 2006 valuation, we still have the same affirmative opinion on the overall current assumption package. We have discussed other selected assumptions with the current Actuary. Overall, the actuarial assumptions used in the valuation and the redesign studies are reasonable and consistent with other groups similar to the CCI RS. In our review of the CCFURS's actuarial assumptions, we sought to answer the following questions: • Are the assumptions internally consistent? ♦ Are the assumptions reasonable, when compared with those used by other public sector plans? ♦ To the extent that there is data on the actual experience of the Plan, are the assumptions consistent with this data? The reader should keep in mind that even given the same underlying experience data, two actuaries will typically never arrive at exactly the same assumptions. There are just too many variables for this to be possible. So the test of a set of assumptions should be whether there are areas of material disagreement between actuaries over the appropriate assumptions to be used for a given situation. We concluded that the Actuary's assumptions are generally internally consistent. In particular, the various economic assumptions are based on an underlying inflation rate of 4.00% (see our Gabriel Roeder Smith & Company —334— Constance Sanchez October 22, 2008 Page 5 comments below); i.e., the assumed annual investment return rate of 8.00% consists of this inflation assumption, plus an assumed net real rate of return of 4.00 %. Similarly, the salary increase rate, which is used in projecting members' benefits (if applicable) in the Entry Age Normal ( "EAN ") Actuarial Cost Method, is the sum of the inflation rate and a merit/seniority /promotional component (which is assumed to be nil by the Actuary). The payroll growth rate, which is used in determining the amortization of the Unfunded Actuarial Accrued Liability, is set equal to the inflation rate /salary scale. (i.e., no growth in membership is anticipated. This is consistent with GASB 25 requirements.) The assumptions are also generally in line with the actual experience we have seen in working with other public sector plans. It is our understanding that the Actuary makes periodic changes to the assumptions in the biennial valuations, based on the experience of the Plan. The Inflation Assumption By "inflation," we mean price inflation, as measured by annual increases in the Consumer Price Index (CPI). This inflation assumption underlies all of the other economic assumptions employed. It impacts investment return, payroll growth rate, and salary increases. The current annual inflation assumption is 4.00 %. Over the five -year period ending in December 2006, the CPI -U has increased at an average rate of 2.69 %. However, the assumed inflation rate is only weakly tied to past results. The chart below shows the average annual inflation in each of the ten consecutive five -year periods over the last fifty years: Gabriel Roeder Smith & Company -335- Constance Sanchez October 22, 2008 Page 6 12.00% 10.00% 8.00% 6.00' 4.00% 2.00% 0.00% Average Annual Inflation CPI -U, Five Fiscal Year Averages 957 -1961 1962 -1966 1967-1971 1972 -1976 19779981 1982 -1986 1987 -1991 1992 -1996 1997 - 2001 2002 -2006 • 5yr Mg. Ncrease The table below summarizes the average inflation over various periods ending December 2006: Peri ods l ndingDeeembee 2006; , Average Annual increase in CPI-U r Last five (5) years 10.06% Last ten (10) years 2.44% Last fifteen (15) years 2.57% Last twenty (20) years 3.06% Last thirty (30) years 4.23% Since 1913 (first available year) 3.31% 7.21% 4.55% 4.53% 1.86% 3.29% 2.84% 2.18% 269% 957 -1961 1962 -1966 1967-1971 1972 -1976 19779981 1982 -1986 1987 -1991 1992 -1996 1997 - 2001 2002 -2006 • 5yr Mg. Ncrease The table below summarizes the average inflation over various periods ending December 2006: Peri ods l ndingDeeembee 2006; , Average Annual increase in CPI-U r Last five (5) years 2.69% Last ten (10) years 2.44% Last fifteen (15) years 2.57% Last twenty (20) years 3.06% Last thirty (30) years 4.23% Since 1913 (first available year) 3.31% Source: Bureau of Labor Statistics. CPI -U, all items, not seasonally adjusted As you can see, while inflation has been relatively low over the last fifteen years, if we look back over a period of 20 or more years, inflation has averaged above 3.00% per year. We recognize that many of the investment consulting firms, in setting their capital market assumptions, currently assume that inflation will be less than 3.00 %. We examined the 2007 and 2008 capital market assumption sets for four large investment consulting firms: Ennis Knupp, PCA, Watson Wyatt, and Wilshire. Gabriel Roeder Smith & Company -336- Constance Sanchez October 22, 2008 Page 7 As we discovered in our analysis, the assumptions for inflation used by the above four firms range from an annual rate of 2.25% to 3.00 %. However, the investment consulting firms typically set their assumptions based on a five or ten year outlook, while actuaries must make much longer projections. Another source of information about future inflation is the market for US Treasury bonds. For example, the December 31, 2007 yield for a 20 -year inflation indexed Treasury bond was 2.00% plus actual inflation. The yield for a 20 -year non - indexed US Treasury bond was 4.50 %. This means on December 31, 2007 the bond market was predicting that inflation over the next twenty years would average 2.50% (4.50% — 2.00 %) per year. However, this analysis can fluctuate significantly over a short period of time. Since January 1, 2006, this methodology has predicted inflation over a 20 -year period in the range of 2.41% to 2.93% per year. This same approach produced a 2.51% predicted annual inflation rate using Treasury bond yields on December 31, 2006. Another source of information is the Public Funds Survey that is prepared on behalf of the National Association of State Retirement Administrators (NASRA) and the National Council on Teacher Retirement (NCTR). This report surveys 100 -125 plans, including all of the largest public funds covering state employees or teachers. The current survey shows that the median annual inflation rate assumed for large public retirement systems in the U.S. is 3.50 %. The current 4.00% assumption is used by about 25% of the surveyed systems, with almost all of the remaining entities using assumptions between 3.00% and 4.00 %. Using the above sources, the reasonable range for inflation appears to be between 2.75% and 4.00 %. Therefore, the current 4.00% assumption is at the top of the reasonable range, and among the highest utilized in the country. To test this assumption, we reviewed the current economic conditions. In April of 2008, the Bureau of Labor Statistics released that the CPI increased 3.93% from April 2007 to April 2008. By most financial professionals, this was considered high. The 4.00% assumption is supposed to represent the long term average of inflation, meaning that about half the time inflation would be higher than 4.00 %. We believe the current assumption is at the top of the current reasonable range and should be examined thoroughly over the next few valuations, and especially before any benefit enhancements are granted. Investment Return Rate The assumed annual investment return rate is 8.00 %, net of administrative and investment expenses. This is the rate used in discounting future payments in calculating the actuarial present value of those payments. The current assumption assumes inflation of 4.00% per annum and an annual real rate of return of 4.00 %, net of expenses. We agree that the 4.00% expected real rated of return is reasonable and within the best estimate range. Currently, the target of CCHRS' assets allocated to equities is 60 %. Based on information provided by Rudd and Wisdom, the median gross real rate of retum based on the current asset allocation is between 4.54% and 5.05 %. Since expenses of the Plan currently account for approximately 0.80% of assets per year, the median expected real return rate is between 3.74% and 4.25 %. Given these capital market expectations, we find the current 4.00% real rate of return assumption reasonable. Gabriel Roeder Smith & Company -337- Constance Sanchez October 22, 2008 Page 8 It is important to note that actuarial assumptions must be built from the ground up, not from the top down. Currently, 8.00% is one of the common investment retum rates used in the industry, especially by public retirement systems. In fact, of the 13 largest Texas local firefighter retirement plans, 9 use an 8.0% investment return assumption. Also, past actual performance may support the 8.00% assumption. However, the 8.00% assumption should not be targeted before the underlying building blocks are set. If the underlying inflation assumption is too high for the long term, then the 4.00% real rate of return assumption will not create an 8.00% long term investment return. For example, as shown in supporting information provided by Rudd and Wisdom, a 3.50% inflation assumption with the 4.00% real rate of return assumption would build a 7.50% investment return assumption for the valuation. It is important to note that the higher the assumed investment return, the lower the Plan's actuarial liabilities will be, and following that the contribution requirements. If the Plan were to experience positive actuarial experience in the future, we would recommend a thorough analysis of the inflation assumption and investment retum assumption be undertaken before any benefit enhancements are granted. Other economic assumptions and demographic assumptions There have been no changes to the payroll growth or underlying salary increase assumptions and we find these to still be in a reasonable range. The Actuary recommended minimal changes to the retirement patterns, withdrawal patterns, and mortality rates in conjunction with the 2006 valuation and we find these recommendations appropriate. Final thoughts We find the current actuarial assumptions, methods, and results reasonable. In addition, we believe the plan design changes as of July 1, 2007 were prudent and will decrease the risk to the future sustainability of the Plan. In our previous correspondence package dated October 11, 2006, we described in detail the issues with benefit structures not related in any way to the salary of the individual employee. The following are some excerpts from that correspondence, followed by a more thorough analysis of the future risk which was being implicitly borne by either the City and/or the Plan members from the old benefit structure: Old Plan Design The old benefit structure is a function of service, paying a flat dollar amount per year of credited service, with no consideration of pay. This type of structure is uncommon for government employees but is common for multi- employer and union negotiated plans. This type of structure forces periodic improvements to the formula. Without periodic improvements, the income replacement provided to the retirees at retirement decreases over time. This type of formula is usually financed without reflecting future increases in the formula. Because these future increases are not explicitly taken into account in the annual contribution calculations, insufficient contributions are being made throughout the career of the employee and, therefore, each Gabriel Roeder Smith & Company -338- Constance Sanchez October 22, 2008 Page 9 time an improvement is made, a new unfunded liability is created. This type of pattern creates a System that will never move toward being "fully funded." It also creates an inequitable relationship between generations of stakeholders (taxpayers and plan members). The following is a projection of selected estimated future valuation results based on the old benefit structure, assuming all assumptions are exactly met and assuming no changes to the current $128 per month per year of service: As shown, with no future benefit enhancements, the funding status of the Plan is projected to improve. There appears to be some room for some level of benefit enhancements in the future as this experience is created. However, what level of enhancements will be sustainable? One of the main goals of funding a public pension plan is to appropriately spread the costs of the program evenly across all generations of taxpayers. The following table shows the same information as above, but with a 4.00% increase in the benefit levels granted each year. As you will recall, 4.00% is the current annual assumption for inflation assumed by the Plan. The 4.00% increase is not "pre- funded" for and, thus, not recognized in advance in the projected liabilities, which means a 4.00% increase would be granted and valued each year with no assumption for future increases. This scenario would be the ultimate scenario required to ensure that future retirees from the Plan have the same replacement incomes as the current or recent retirees receive: yet �y �i_� x tea, x ..Ndl otht OO �A,"C tamiumintrtaSe& ..,a ., �m aan. Fti e-1 k YSr 6Ei ' ., e ss 3'z++- r qi h Aft !e —[ �dr� F( fil " ;.. -` aka at-•" �., �.s< r? 6A(Ft ,1 C P b • CA,-,1 ©n 23 years 2006 10.68% 68.5% $42.5 2010 11.44% 59.7% 72.3 53 years 2014 12.08% 48.5% 120.1 Never 2018 12.79% 34.6% 194.0 Never The above table shows that the old benefit structure with future increases equal to inflation (4.00% assumed per annum) can not be sustained under the current contribution levels. Without increases to the contribution levels, it is likely that future retirees will have proportionately less valuable benefit levels than current and recent retirees. Please further note, while not shown in the above table, the City contribution requirement to meet a 30 -year amortization period in years 2014 and 2018 would be approximately 26.5% and 33.4% of total payroll. Gabriel Roeder Smith & Company -339- Constance Sanchez October 22, 2008 Page 10 Based on similar projections, the average increase to the old flat benefit levels that produces a sustainable financing policy based on a 13.0% City contribution rate is between 1.00% and 1.50% per annum. To advance fund a full inflationary increase per annum (4.00 %), we have estimated that the current 13.0% City contribution rate would need to increase into the range of 19.0% to 23.0 %, based on the latest 2006 actuarial valuation results. Furthermore, given the most recent investment performance of 2007 and 2008 Plan assets, it is likely the required contribution rates to sustain the current replacement incomes for all members would be even higher. The change to a benefit design related to the pay of the individual employee eliminates this consistent need to update the benefit formula since the benefits are now automatically indexed to payroll. We were pleased to see the Plan make this change. Summary We believe the December 31, 2006 actuarial assumption set, as a whole, is reasonable and actuarially consistent. As such, and with technical verification, we believe the December 31, 2006 actuarial valuation accurately portrayed the actuarial condition of the CCI -PRS at that time. We are available to answer any questions you may have and to provide additional details and insights. We appreciate the cooperation we received from the Actuary, Rudd and Wisdom, Inc., the CCFFRS and the City staff during the course of our audit. It was our pleasure to work with all of them. Respectfully submitted, Joseph P. Newton, FSA, EA, MAAA Consultant 9 ,tom( Mark R. Randall, EA, MAAA Executive Vice President cc: Mr. Robert May, FSA Mr. Mark Fenlaw, FSA Rudd and Wisdom, Inc. Gabriel Roeder Smith & Company -340- CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: November 11, 2008 AGENDA ITEM: Resolution to Acknowledge Receipt of Final Audit Report for the Corpus Christi Firefighters Retirement System for the Period Ended December 31, 2006. ISSUE: The Texas Legislature passed HB 2664 which requires Texas public pension plans with assets totaling at least $100 million to have an independent actuary perform an audit every 5 years of the valuations, studies, and reports, most recently prepared by the pension fund. Although City employees are covered by one of two pension plans (Texas Municipal Retirement System and the Corpus Christi Firefighters' Retirement System), State funds like the Texas Municipal Retirement System were specifically excluded from this bill. Therefore, the City of Corpus Christi was impacted by this bill in reference to the Corpus Christi Firefighters' Retirement System. As a result, the City of Corpus Christi hired an independent actuary to review the last annual actuarial valuation conducted for the Corpus Christi Firefighters' Retirement System. The audit report has been completed and is being presented to the City Council for formal acknowledgment of receipt. REQUIRED COUNCIL ACTION: Approval of the Resolution. CONCLUSION AND RECOMMENDATION: Staff recommends City Council approval of the Resolution as presented. Attachment: Background Information Resolution —341— YJ. Constance P. Sanchez Interim Director of Financial Services BACKGROUND INFORMATION The Texas Legislature passed HB 2664 in the summer of 2007 which went into effect September 1, 2007. The bill requires Texas public pension plans with assets totaling at least $100 million (excluding State funds like the Texas Municipal Retirement System), to have an independent actuary perform an audit every 5 years of the valuations, studies, and reports, most recently prepared by the pension fund. Pension plans affected by this bill (which the Corpus Christi Firefighters' Retirement System Fund does), must have their actuarial audits conducted no later than September 1, 2008 - with the governmental entity for which the public retirement system is responsible for, selecting the actuary and for paying all costs associated with preparing and distributing the audit. The bill states that the actuary conducting the audit must provide the retirement system with a preliminary draft of the report within 30 days of the audit completion. After that, the retirement system has up to 30 days upon receipt of the draft to add a response which can accompany the final audit report. Once the report if final, then the governmental entity must post on the agenda before its next regularly scheduled open meeting that they intend to present and review the final audit results and are obligated to provided a printed copy of the final audit results to all who are attending the meeting. The governmental entity is also responsible for submitting the results of the audit to the State Pension Review Board. At December 31, 2007, net assets held in trust for pension benefits by the Corpus Christi Firefighters' Retirement System totaled $101,440,018. As such, State law requires that an independent actuary perform an audit of the last actuarial valuation, which was completed for the year ended December 31, 2006. (The next valuation will be for the year ending December 31, 2008.) The City of Corpus Christi hired Gabriel Roeder Smith & Company to conduct the audit. The draft audit report was sent to the City on August 25, 2008, and was presented to the Board of Trustees of the Corpus Christi Firefighters' Retirement System on September 25, 2008. The Board then had 30 days to respond but chose not to submit a formal response. Minor wording changes were made to the report, and the report was finalized on October 22, 2008. As required by State law, the final audit results are being presented and reviewed by the City Council at its next regularly scheduled open meeting. Pi presentation has also been scheduled during this meeting, and approval of this resolution acknowledging receipt of the final audit report for the Corpus Christi Firefighters' Retirement System for the period ended December 31, 2006 is needed to comply with this provision of the law. Upon approval of this resolution, City staff will submit the audit report and executed resolution to the State Pension Review Board within 30 days of the date of approval. —342— Page 1 of 2 RESOLUTION TO ACKNOWLEDGE RECEIPT OF FINAL AUDIT REPORT FOR THE CORPUS CHRISTI FIREFIGHTERS RETIREMENT SYSTEM FOR THE PERIOD ENDED DECEMBER 31, 2006 Whereas, House Bill 2664 adopted by the 80th Texas Legislature, requires that the actuarial valuations, studies, and reports of a public retirement system with total assets the book value of which, as of the last day of the preceding fiscal year, is at least $100 million must be audited by an independent actuary every five years, with the first report to be conducted by September 1, 2008, and submitted to the public retirement system for their response; Whereas, the Corpus Christi Firefighters Retirement System is subject to HB 2664; Whereas, in accordance with HB 2664, the draft audit report was sent to the City on August 25, 2008, and was presented to the Board of Trustees ( "Board ") of the Corpus Christi Firefighters' Retirement System on September 25, 2008 for their response; Whereas, in accordance with HB 2664, the Board then had 30 days to respond but chose not to submit a formal response; Whereas, minor wording changes were made to the report, and the report was finalized on October 22, 2008; Whereas, on November 11, 2008, the City of Corpus Christi received a presentation on the Audit Results for the Corpus Christi Firefighters Retirement System from the independent actuary; Now, therefore, be it resolved by the City Council of Corpus Christi, Texas: Section 1. The City of Corpus Christi acknowledges receipt on November 11, 2008, of the Final Audit Report for the Corpus Christi Firefighters Retirement System for the period ended December 31, 2006. The City Director of Financial Services is directed to submit a copy of this Resolution and the Final Audit Report to the Corpus Christi Firefighters Retirement System, and to the State Pension Review Board not later than the 30th day after the date the final audit report is received by the governmental entity. Section 2. This Resolution takes effect on this the 11th day of November, 2008. ATTEST: CITY OF CORPUS CHRISTI, TEXAS Armando Chapa Henry Garrett City Secretary Mayor APPROVED this 3° day of fair' 2008. don Lisa Aguilar Assistant City A orney for the City Attorney H: \LEG- DIR \Lisa\2008 Resolutions \RES - Firefighter Retirement 4y3tbiti audit.doc Page 2 of 2 Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon LEG-DIR \Lisa \2008 Resolutions \RES-Firefighter Retiremee 44em audit.doc 30 CITY COUNCIL AGENDA MEMORANDUM November 11, 2008 AGENDA ITEM: Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 55, to impose a lien for overdue utility bill. . ISSUE: State law provides that cities may adopt an ordinance to impose a lien for delinquent utility charges. Per state law, this ordinance does not apply to homestead property, nor to bills for service connected in a tenants name after notice by property owner that the property is rental property. REQUIRED COUNCIL ACTION: City Council must approve amendments to the Code of Ordinances. PREVIOUS COUNCIL ACTION: None related to this issue. RECO MEt1DATI Staff recommends approval of the ordinance. Micha-I : arrera Assistant Director off Financial Services —347— BACKGROUND The effects of this ordinance will be on commercial accounts maintained by the City. Homestead properties and rental property where the account is opened in the tenants name are exempt from the ordinance. The City disconnects utility services for past due accounts after an overdue utility notice has been sent to the customer. The process can take up to 45 days after the due date to complete. Historically, accounts that remain overdue are carried on the books until such time that the City deems them uncollectible. As of November 4, 2008, the City has identified nine (9) accounts with a combined past due balance of $80,000 that a lien may be applied against the property. The ordinance will allow the City to place a lien on the properties which will be superior to all other liens placed on the property with the exception of a bona fide mortgage lien. If the past due balance remains unpaid, the owner will be required to pay the bill prior to selling the property. -348- AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, CHAPTER 55 TO IMPOSE LIEN FOR OVERDUE UTILITY BILL; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE OF DECEMBER 1, 2008. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Article III of Chapter 55 of the Code of Ordinances is amended by adding new section 55 -76 to read as follows: "Sec. 55 -76. Lien for overdue payments for utility services. "(a) Definitions. For purposes of this section: (1) "utility" shall mean any City utility, including but not limited to water, storm water, wastewater, solid waste, and gas; (2) "Director" shall mean the Director of Financial Services or designee. "(b) Authority. In accordance with the provisions of Art. 11 Section 5 Texas Constitution, Chapter 402, Texas Local Government Code, and City Charter, Article X Section 1 (14), the City may adopt an ordinance to impose a lien against an owner's property, unless it is homestead property, for overdue payments for utility service to the property. "(c) Exceptions. This section shall not apply to homestead property as protected by the Texas Constitution. This section shall not apply to overdue payments for service connected in a tenants name after notice by the property owner to the Utilities Business Office Manager that the property is rental property. The lien does not apply to bills for utility service connected in a tenant's name prior to the effective date of this ordinance. "(d) When a bill for utility services remains unpaid forty -five (45) days after the due date on the bill, and the amount owed exceeds $500.00, and these procedures are followed, the overdue payment shall constitute a lien against the property served. "(e) When lien is perfected. The lien is perfected by recording in the real property records where the property is located a notice of lien containing the following: "(1) a legal description of the property which is the subject of the lien; (2) the utility's account numbers for the overdue charges, and lien for delinquent utility bill November 1 2008 —349— 2 (3) the amount of overdue charges, including penalties, interest and collection costs, if any, incurred upon the property as of the date of execution of the lien. "(f) Execution and recording. The lien must be: "(1) executed by the Director of Financial Services and acknowledged by a notary public of the State of Texas; "(2) approved as to form by the City Attorney; and "(3) filed in the deed or lien records of the county in which the property is located. "(q) Priority of lien. The lien is inferior to a bona fide mortgage lien that is recorded before the recording the City's lien in the real property records of the county where the property is located. The lien is superior to all other liens, including previously recorded judgment liens and any liens recorded after the City's lien. "(h) Additional charges; correction lien. Should additional overdue charges be incurred subsequent to the date of the original lien's execution, a correction lien may be executed and filed, in the form provided above, fixing the additional charges. The correction lien, when filed of record, shall relate back to the date of recording of the original lien and shall become a part of the original lien. "(1) Suit to foreclose. The City Attorney at the request of the City Manager, may file suit to judicially foreclose the lien in a state court of competent jurisdiction. "(j) Release of lien. Upon verification that all delinquent charges which existed against the property have been fully paid, the Director is authorized to execute a release of the lien. The release shall be prepared and approved as to form by the City Attorney. After execution, the Director must promptly file the release in the deed or lien records of the county in which the property is located. "(k) Cumulative remedies. This section is cumulative of any other remedies. methods of collection or security available to the director or the city under the charter and ordinances of the city or under state law." 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 this City Council that every section, paragraph, subdivision, clause, phrase, word or provision of this ordinance be given full force and effect for its purpose. SECTION 3. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 4. This Ordinance takes effect on December 1, 2008. LIEN FOR DELINQUENT UTILITY BILL NOVEMBER 1 2008 —350— 3 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly That the foregoing ordinance was read for the second time and passed finally on this the day of , 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa City Secretary APPROVED as to form: By: �� Henry Garrett Mayor eu h I,%voS Lisa Aguilar, Assistant City Attorney For City Attorney LIEN FOR DELINQUENT UTILITY BILL NOVEMBER 1 2008 —351— 31 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Report on Tuloso- Midway Independent School District by Dr. Cornelio Gonzalez, Superintendent STAFF PRESENTER(S): Name JoAnn Hooks OUTSIDE PRESENTER(S): Name Title /Position /Organization Director of Education Initiatives Title /Position /Organization 1. Dr. Cornelio Gonzalez 2. Mr. Paul B. Mostella 3. Mrs. Sylvia Longoria -Hill TMISD Staff In Attendance: Dr. Timothy Cuff Mrs. Carol Sue Hipp Superintendent Tuloso- Midway Independent School District (TMISD) President, Board of Trustees Vice - President, Board of Trustees Assistant Superintendent for Curriculum and Instruction (TMISD) Assistant Superintendent for Business and Operations (TMISD) TMISD School Board of Trustees: Paul Mostella Sylvia Longoria -Hill Felix Landin Jan Mostella Billy Lerma Hector DO Toro Michael Alanis President Vice - President Secretary Vice - Secretary Trustee Trustee Trustee —355— ISSUE & BACKGROUND: In an effort to keep education at the forefront of City issues, each school district from the Corpus Christi area will be invited to City Council once a month to share information regarding their respective districts. Tuloso- Midway ISD is the third in a series of presentations. Led by each district's superintendent and members of his or her school board, we will begin to build community awareness of our educational landscape. The districts will give an overview of the following: • District Demographics (to include dropout information, if applicable) • Successful programs; programs /curriculum aligned to address local workforce needs • Challenges facing the district/opportunities for partnerships REQUIRED COUNCIL ACTION: None. JoAnn Ho s tE Director of Education Initiatives —356— 0 0 802 Students E .^L 0 771 Students t CO Intermediate 778 Students t CO 4) D D 2 1014 Students 22 Students 0 U 2 < ➢Native American t. O D D o 0) O C C3) n liaj C 0 C3 (0 'CT3 U) (i) . CD _0 = CD = _C (13 03 N 03 C3) _I 0 C ± a) o o 0 I) n o it a o CO a) a) W (1) CO o_ n -0 -0 -0 CY) E c 7 g T ° c 0 03 0 to 45 8 11: 0 c , c O 0 0 0 ..- . ..- CO 0 CD CO > U) 0 0 > 1-0 0 0 N- c 5 >n C N a) a) a)c) a) 69- fY Z Z U) fit 11 11 10 11 11 Construction of new Tennis Courts at and High Schoo 0 ai it$ .......... 4 cn cn N 0 0 CD E L a) 0 0 0 c D co N il a) N O 0 • 1st Generation Co • ; c Community Support c E thi a) a) 0 0 b>woo V 3 a D 1:5 V/ CD CZ CZ 0 0 Grad uates 0 N. 4 co N c 0 0) a) fr z 0 cm _. . c t a c o a o c U - c 0 0 73 C3 D J O E CD 0 `�slVVVVVVVVV�� � � u � � � � ���VGC'; Sn 0 CD CI I— ('3 --- co E k Ltd- ..„ L._ 0 a) (-) Q. -.Q C 0 CL) _ -.Q >- :5- 01) o E 0 32 Interoffice Memorandum To: Mayor and City Council Members From: Mary Kay Fischer, City Attorney ] f Date: November 3, 2008 Subject: Report on Secretary of State's Opinion regarding April Election Date On April 14, 2007, the City of Corpus Christi conducted a general election for election of Mayor and eight Council Members and continuation of the Crime Control and Prevention District. After the Comptroller's Office became aware of the City's "April" election date, it contacted the Secretary of State's office in January, and questioned the validity of the election since the City of Corpus Christi did not conduct its election on a typical statutory uniform election date. The following background information and arguments were shared with the Secretary of State in support of the City's position that ballot measures are allowed to be placed on the City's April election date. Section 41.0051 was added to the Texas Election Code in 1987 to address the problem caused when the April uniform election date was changed to a May uniform election date and coincided with the City's Buccaneer Days festival. Keeping the election in April addressed the problem and avoided the possibility of greatly depressed turnout that would be likely if the election were on the same day as Buccaneer Days celebration in May. Section 41.0051 states "The general election for officers of a city that borders the Gulf of Mexico, has a population of more than 230,000 according to the 1980 census, and held its general election for officers in 1987 on the first Saturday in April may be held on any Saturday in April in odd - numbered years." Since the law permitting the City's April election date was effective on October 20, 1987, the City of Corpus Christi has traditionally interpreted Section 41.0051 to authorize a general election in April of odd - numbered years. There is clear evidence that the Legislature intended elections on measures to be included on the Corpus Christi April ballot. In 2003, when the Senate voted on changing the May uniform election date, Senator Hinojosa asked specific questions to be sure the amendment to the May uniform election date did not affect the ability of Corpus Christi to hold its general election in April of odd - numbered years. There were specific discussions noting the "April date was to be used for our general election date, rather than the May uniform date" and that "a city which uses the April date raider Section 41.0051 would not be permitted to use the J, May uniform date for an election on a measure, but would have to use its April or a uniform election date other than May." In accordance with that interpretation and the legislative intent surrounding the provision, the City of Corpus Christi has historically held general elections that included both officers and ballot measures at the same time in 1989, 1991, 1993, 2001 and 2007. When the discussions were concluded, the Secretary of State provided the Comptroller's Office with a letter that determined that no action to invalidate or failure to certify our election results would be undertaken. A copy of the letter from the General Counsel for the Secretary of State, and the City's letter that is referenced in the General Counsel's letter are attached. In light of the Secretary of State's position that only election of officers can be conducted on the City's April election date, the City made commitment to take actions to seek legislative clarification and a validation of any previous actions undertaken with regards to this particular provision. After consulting with Rudy Garza and Armando Chapa, it was determined that the City expediently seek a legislative change to avoid any ambiguities and to better match historical practices and the express legislative intent. You will find this election issue in the proposed Legislative Agenda presented by Rudy Garza . When the Charter Review Committee first met in April, and was advised that the Charter amendment election could not take place in April, 2009, there was further research conducted to determine whether the City could move the 2009 municipal election to the May uniform election date pursuant to Article II, section (b) of the city charter which states "The regular election shall be held in odd - numbered years on the first Saturday in April unless the city council designates an alternative Saturday in April or the next available uniform election date allowed by state law at least three months prior to the regular election." I consulted with Bob Heath, an election law expert, who provided the attached letter opinion that concluded that the charter language is subservient to state law. Texas Election Code Section 41.0052 prohibits the city from changing its election to the May uniform date because it did not do so prior to December 31, 2005, the deadline set out in that statute. For this same reason, until the law is changed, the City must conduct its election of officers in April and cannot conduct an election on other ballot measures in May. Phil Wilson S13CRETARY OF STATE State of Texae April 8, 2008 Mr. Martin A. Hubert Deputy Comptroller Office of the Texas Comptroller of Public Accounts P.O. Box 13528 Austin, Texas 78711 -3528 Re: The Corpus Christi Crime Control District Dear Mr. Hubert Thank you for contacting the Office of Texas Secretary of State Phil Wilson by letter on January 24, 2008. Secretary Wilson has forwarded your letter to me and asked that I respond to you in writing, In your letter, you ask whether the election held by the Corpus Christi Crime Control District (the "District ") on April 14, 2007 is valid, or whether this election is necessarily void. Based on the information we have been provided, this election — as well as others that were held by the City of Corpus Christi the "City ") over the last several years — was held pui'suaiit to the -provisions oP Section 41.0051 of the Texas Election- ode. • This statute allows certain coastal oiliest hold their general elections for city officers on any Saturday in April in odd- numberedyears. M you are aware, each of the elections that have been.referenced in the discussions and briefings that have occurred on•this issue pre -date Secretary Wilson's tenure as Texas' Secretary of State, However, Secretary Wilson is nonetheless extremely concerned about any allegation or circumstance that could call into question an election's validity. On Friday, March 28, 2008, this office received a letter from the City. • This letter expresses the City's (i) belief that Section•41.005I of the Texas Election Code should be amended to better match the City's historical practices to the expressed legislative intent of this provision, (ii) commitment to seeking a validation of any previous actions that were undertaken with respect to this provision and (iii) plan not to undertake any Poet Office Box 12697,Capitol Station Austin, Texas 78711 -2697. 512. 463 -5770 , elections, other than the general election of city officers, under this provision until after it is statutorily clarified. After reviewing the information that has been provided to us, Secretary Wilson has determined that this office will take no action with respect to the District's April 4, 2007 election. However, this "no action" determination is not, and should not be considered to. be, an endorsement of or an agreement with the City's initial reading of Section 41.0051. Indeed, this determination was made and was based largely on two factors: the presumed spirit and intent of this statutory provision and, more importantly, the commitments set forth above that the City made to Secretary Wilson in its March 28, 2008 letter. Therefore, if for some reason the Legislature elects not to address this statute or this situation in its next regular legislative session, this determination may be revisited by this office. Finally, it is worth pointing out that Secretary Wilson's decision to talce `no action" on this issue is not binding on third parties. If someone other than the Secretary of State's Office decides to challenge either the District's last election or any of those held by the City in reliance of Section 41.0051, then a fmal ruling on the issue would be left to the courts. I hope you found this information useful. In the future, if we can be of any help to either you or your office, please do not hesitate to contact us. Very truly yours, yer General Counsel • 'Office of the Secretary of "State ' City of Corpus Christi LEDALDEPARTMENNT PO Box 9277 Corpus Christi lexes 78469 -9277 Phone 361. 880 -3360 Fax 361 -880 -3239 Municipal Court Prosecutor's Office 120 N. Chaparral Comm Christi lbxaa 78401 Phone 361-886-2530 Fax 361-886-2567 Juvenile Court Ptosecaror, Office 226 Enterprise Pkwy Suite 103 Corpus Christi Ilexes 78405 Phone 361. 826 -4014 Nix 361-826-4309 Police Legal Advisor 321 John Santee Corpus Christi 'Rams 78401 Phone 361-886-2608 Fax 361-886-2634 WW W.cctexa$.com March 28, 2008 VIA HAND DELIVERY Mr. Phil Wilson Texas Secretary of State State Capitol, Room 1E.8 Austin, Texas 78711 Dear Secretary Wilson, The City of Corpus Christi recently supplied your office with a legal brief pertaining to issues raised by the Texas Comptroller's Office regarding our April 14, 2007 municipal elections. As you know, the City of Corpus Christi held their election for officers and a ballot measure that continued the operation of the previously authorized Corpus Christi Crime Control and Prevention District on that date. The City of Corpus Christi has traditionally interpreted Section 41.0051 of the Texas Election Code, as passed in 1987, to authorize a general election in April of odd - numbered years. In accordance with that interpretation and the legislative intent surrounding the provision, the City of Corpus Christi has historically held general elections that included both officers and ballot measures at the same tithe. Although we stand by the legal arguments included in our brief, we certainly understand, after further review that the existing statute should be amended to avoid any ambiguities and to better match historical practices and the express legislative intent. The City of Corpus Christi wants to take this opportunity to express our strong desire to work with your office on crafting language that could be used to clarify the existing Election Code provisions during the upcoming Legislative Session. We are committed to seeking legislative clarification and a validation of any previous actions undertaken with regards to this particular provision. In addition, the City of Corpus Christi does not plan to undertake any elections, other than the general election of officers, under this particular Election Code provision until after it is statutorily clarified. Thank you (and your staff) for your consideration and assistance with regards to this important matter. We look forward to working with your office to resolve the issue and would also ask for your assistance in addressing the issues raised by the Texas Comptroller. Please let us know if you need any additional information or have any additional questions relating to this matter. Respectfully Mary Fischer City Attorney Bickerstaff Heath Delgado Acosta aP Re Congress Avenue Suae 1700 Austin, Texas 78701 (512) 4738021 Fax (512) 520.5688 www.bickerstattcom May 7, 2008 Ms. Mary Kay Fischer City Attorney P.O. Box 9277 Corpus Christi, Texas 78469 -9277 Dear Ms. Fischer: You ask if it will be possible to move the 2009 municipal election to the May uniform election date. Article 11, section 1(b) of the city charter provides: The regular election shall be held in odd - numbered years on the first Saturday in April unless the city council designates an alternative Saturday in April or the next available uniform election date allowed by state law at least three months prior to the regular election. Corpus Christi City Charter, art. II, § 1(b). The language of the charter, standing alone, would permit the election to be moved to the May uniform date. The charter language, however, is subservient to state law. See e.g., Tex. Const., art, XI, § 5. At least two provisions of state law relate to the date of Corpus Christi's municipal election or the ability to change that date. Section 41.0051 of the Election Code gives the city specific statutory authority to hold its election "on any Saturday in April in odd - numbered years." TEX. Et.Ec. CODE, § 41.0051(a). That statute does not address the possibility of Corpus Christi holding an election on the May uniform date; however, absent section 41.0051, the city would be required to conduct its election on a uniform election day in either May or November. Assuming for the purpose of this analysis that section 41.0051 is merely permissive, rather than mandatory, (i.e., that the city is permitted, but not required, to choose an April date), then Corpus Christi would have the ability to choose the May uniform election date unless some other provision of state law restricts that choice. Section 41.0052 of the Election Code authorizes govemmental bodies to change their election date only during a specified window of time. Specifically, that section provides: Ms. Mary Kay Fischer May 7, 2008 Page 2 (a) The governing body of apolitical subdivision other than a county may, not later than December 31, 2005, change the date on which it holds its general election for officers to another authorized uniform election date. TEX. ELEC, CODE § 41.0052(a). Thus, if section 41.0052 applies, then Corpus Christi may not change to a May election date because the window for making that change is currently closed. An argument has been suggested that section 41.0052 does not apply because it implicitly addresses changes only from one uniform date to another. While that is a possible reading of the statute, we do not believe that it is the likely interpretation that the courts, the Attorney General, or the Secretary of State would take. There does not appear to be any judicial interpretation of these statutes; however, the Attorney General has addressed a question relating to section 41.052. The person requesting the opinion from the Attorney General argued that section 4I.0052 by its terms, applied only to a change made by the "governing body of a political subdivision." Under the requestor's argument, a change made by amendment of the city charter would not fall within the statute because it would be made by the electorate rather than by the governing body of the city. In addressing the issue, the Attorney General looked to the history of the statute and the legislative purpose. Section 41.0052 was initially adopted in 1993 and imposed a December 31, 1993 deadline for changes in a governmental body's election date. Act of May 28, 1993, 73' Legis., R.S., ch. 728, § 11, 1993 Tex.Gen. Laws 2845, 2847. Since that time, it was amended in 1997, 1999, 2003, and 2005 to provide additional windows for changing an election date. See Op. Tex. Att'y Gen. No. GA -0342 (2005) at 4, nn. 6 -9. After an analysis of the legislative history of the statute, the Attorney General concluded that "section 41.0052(a) is designed to impose a deadline after which changes to a political subdivision's general election date may not be made in order to allow candidates, election officers, and the voting populace time to adjust to a new election date and all the concomitant election schedule changes." Op. Tex. Att'y Gen. No. GA -0342 (2005) at 4-5. The rationale set out by the Attorney General would apply to the question posed here since permitting changes outside the statutory window causes confusion among candidates, voters, and election officials. For the same reason the Attorney General declined to give section 41.0052 a narrow reading in his 2005 opinion, we believe he would decline to give it a narrow reading in the context of this question. While the Secretary of State does not appear to have addressed the issue formally, we have discussed the question with the Secretary of State's Election Division, and we understand that they believe that section 41.0052 would prohibit a change to a May election date unless and until section 41.0052 is amended either to delete the prohibition on changing to a uniform date after December 31, 2005, or to open a new window during which a change may be made. - Ms. Mary Kay Fischer May 7, 2008 Page 3 Accordingly, it is our view that section 41.0052 prohibits the city from changing its election to the Mayunifonn date because it did not do so prior to the deadline set out in that statute. Sincerely, C. Robert Heath 33 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: An overview of the plasma technology project by Bayshore Technologies, LLC. STAFF PRESENTER(S): Name Title /Position Department 1. Irma Caballero Director of Economic Development 2. 3. 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