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Agenda Packet City Council - 12/16/2008
CITY COUNCIL AGENDA DECEMBER 16, 2008 11:45 A.M. — Swearing -in Ceremony of newly appointed Board, Commission and Committee members AGENDA CITY OF CORPUS CHRISTI REGULAR COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 1201 LEOPARD ST. CORPUS CHRISTI, TEXAS 78401 DECEMBER 16, 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, whicheveris earlier. Please speak into the microphone located at the podium and state your name and address. Your presentation will be limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Si Usted desea dirigirse al Concilio y cree que su ingles es limitado, halve un interprete ingles- espariol en todas lasjuntas 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 office (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 Pastor Dr. Steve Bain, The Believer's Fellowship. 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 Michael McCutchon Council Members: Melody Cooper City Manager Angel R. Escobar Larry Elizondo, Sr. City Attorney Mary Kay Fischer Mike Hummel) City Secretary Armando Chapa Bill Kelly Priscilla Leal John Marez Nelda Martinez E. MINUTES: (NONE) Agenda Regular Council Meeting December 16, 2008 Page 2 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) F. BOARDS & COMMITTEE APPOINTMENTS: (NONE) 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 am 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 furnished with background and support material on each item, and /or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately unless requested by a Council Member or a citizen, in which event the item or items will immediately be withdrawn for individual consideration in its normal sequence after the items not requiring separate discussion have been acted upon. The remaining items will be adopted by one vote. CONSENT MOTIONS. RESOLUTIONS. ORDINANCES AND ORDINANCES FROM PREVIOUS MEETINGS: (At this point the Council will vote on all motions, resolutions and ordinances not removed for individual consideration) 1. Motion approving the lease- purchase of one (1) Caterpillar 120M Motor Grader, one (1) Caterpillar CB -534D Vibratory Asphalt Compactor, and two (2) Caterpillar PS -150C Pneumatic Compactor from Holt -Cat, of Irving, Texas for a total amount of $472,927 of which $35,267.16 is budgeted in FY 2008 -2009. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The equipment will be used by the Street Department. All units are replacements to the fleet. Financing will be provided through the City's lease- purchase program. (Attachment # 1) Agenda Regular Council Meeting December 16, 2008 Page 3 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 2. Motion approving the lease /purchase of one (1) Sterling truck tractor from Grande Truck Center, of San Antonio, Texas for a total amount of $84,504. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The unit is a replacement to the fleet and will be used by Street Services. Financing for the truck tractor will be provided through the City's lease /purchase financing program. (Attachment # 2) 3. Resolution authorizing the City Manager or his designee to participate in an Interlocal Agreement with Harris County, Texas allowing the City of Corpus Christi, Texas to secure goods and services competitively procured by Harris County, Texas, when in the best interest of the City. (Attachment # 3) 4. Resolution authorizing the submission of a grant application in the amount of $89,291.82 to the State of Texas, Criminal Justice Division for Year 10 funding available under the Victims of Crime Act (VOCA) Fund for the Police Department's Family Violence Unit with a City match of $19,578 and $4,000 in -kind services and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant. (Attachment # 4) 5. Resolution authorizing the submission of a grant application in the amount of $100,964.38 to the State of Texas, Criminal Justice Division for Year 10 funding available under the Violence Against Women Act (VAWA) Fund for the Police Department's Family Violence Unit with a City match of $42,088.74, an in -kind match of $16,800, for a total project cost of $159,853.12 and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant. (Attachment # 5) 6.a. Resolution authorizing the City Manager or his designee to execute a sub - recipient agreement in the amount of $1,500,730 with the Office of the Governor's Division of Emergency Management Homeland Security Grant Program; and authorizing the City Manager or his designee, to accept, reject, alter or terminate the grant. (Attachment # 6) Agenda Regular Council Meeting December 16, 2008 Page 4 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 6.b. Motion authorizing the City Manager or his designee to accept a grant in the amount of $1,500,730 from the Office of the Governor's Division of Emergency Management Homeland Security Grant Program for the purchase of specialized equipment and training. (Attachment # 6) 6.c. Ordinance appropriating $1,500,730 from the Office of the Governor's Division of Emergency Management Homeland Security Grant Program in the No. 1062 Fire Grants Fund forthe purchase of specialized equipment and training. (Attachment # 6) 7.a. Resolution ratifying acceptance of a $738,215 grant awarded by the Area Agency on Aging of the Coastal Bend for the FY 2008 Senior Community Services, Elderly Nutrition Program. (Attachment # 7) 7.b. Ordinance ratifying appropriation of a $738,215 grant from the Area Agency on Aging of the Coastal Bend in the No. 1067 Parks and Recreation Grants Fund for the FY 2008 Senior Community Services, Elderly Nutrition Program. (Attachment # 7) 7.c. Resolution ratifying acceptance of a $257,311 grant awarded by the Texas Department of Aging and Disability Services for the FY 2008 Senior Community Services, Title XX Meals on Wheels Program. (Attachment # 7) 7.d. Ordinance ratifying appropriation of a $257,311 grant from the Texas Department of Aging and Disability Services in the No. 1067 Parks and Recreation Grants Fund for the FY 2008 Senior Community Services, Title XX Meals on Wheels Program. (Attachment # 7) 8.a. Resolution authorizing the City Manager or his designee, to execute an Interlocal Agreement with the Calallen Independent School District (ISD) for the City of Corpus Christi to operate a Latchkey program at Calallen ISD from January 1, 2009 through July 31, 2015. (Attachment # 8) 8.b. Ordinance appropriating $146,623 in the General Fund No. 1020 from the estimated revenues from Latchkey afterschool and summer registrations; changing FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 to increase estimated revenues and appropriations by $146,623 each. (Attanhmant # RI Agenda Regular Council Meeting December 16, 2008 Page 5 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 9. Motion approving the allocation of $32,770.70 from the Hotel Occupancy Tax Fund and $61,633.30 from the General Fund to fund grant contracts with sixteen (16) arts and cultural organizations for a total of twenty -two (22) arts projects. Funding was authorized in the FY 2008 -2009 budget. (Attachment # 9) 10. Ordinance authorizing the City Manager or his designee to execute an extension of the lease with Landry's Seafood and Steakhouse — CC, Inc. until March 31, 2009, to operate a restaurant on Peoples Street T -Head in consideration of payment of $6,000 per month or 2.75% of monthly gross sales, whichever is greater. (Attachment # 10) 11. Ordinance appropriating $121,274.93 from the unappropriated fund balance designated for Municipal Court facility security including two Deputy City Marshals, walk -thru detector services, temporary security services; changing FY 2008 -09 Operating Budget adopted by Ordinance 027776 to increase appropriations by $121,274.93. (Attachment # 11) 12. Ordinance appropriating $258,685.69 from the Municipal Court Technology Fund for Mentalix Live Scan equipment, cameras and other defined equipment for enforcement; changing FY 2008 -09 Operating Budget adopted by Ordinance 027776 to increase appropriations by $258,685.69. (Attachment # 12) 13. Ordinance appropriating $26,685.84 from the Municipal Court Judicial Improvement Fund for temporary staff, overtime for the Warrant Round Up and expenses related to extended hours and mailouts; changing FY 2008 -09 Operating Budget adopted by Ordinance 027776 to increase appropriations by $26,685.84. (Attachment # 13) 14. Resolution expressing support for the Big City Mayors' Legislative Initiative dealing with Homelessness.(Attachment# 14) 15. Motion authorizing the City Manager or his designee to execute a subrecipient agreement with the Corpus Christi Community Improvement Corporation (CCCIC) to fund The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. (Attachment # 15) Agenda Regular Council Meeting December 16, 2008 Page 6 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 16. Resolution reaffirming the City of Corpus Christi's investment policy. (Attachment # 16) 17. Motion authorizing the City Manager to amend the Contracts for Services in Lieu of Annexation between the City and Sam Kane; Sam Kane Beef Processors, Inc.; Mary Hutchins Triestman Limited Partnership and Sam Kane Beef Processors, Inc.; and Abhud, LLC and Sam Kane Beef Processors, Inc., which were authorized by the City Council on November 18, 2008, in relation to the disannexation of the property, by extending the terms of the contracts from five (5) to fifteen (15) years and clarifying terms for reannexing the properties and application of City ordinances to the properties. (Tabled from 12/09/08) (Attachment # 17) 18. Resolution adopting the Corpus Christi Commercial Revitalization Local Strategic Plan. (Attachment # 18) 19. Motion authorizing the City Manager or his designee to execute Change Order No. 5 to the construction contract with Salinas Construction Technologies of Pleasanton, Texas in the amount of $186,166.42 for a total restated fee of $4,068,151.90 for the Greenwood Drive Improvements, Phase 1, from Golliharto SPID for additional improvements to existing sidewalks, ADA ramps, driveways, and curb and gutter. (Attachment # 19) 20. Motion authorizing the City Manager or his designee to execute Change Order No. 6 to a construction contract with SLC Construction, LP, of Conroe, Texas in the amount of $139,909.04 for the Whataburger Way drainage improvements' project. (Attachment # 20) 21. 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 $72,825.62 for Solomon Coles Gymnasium Window Replacement on the North and South Sides. (Attachment # 21) 22. Motion authorizing the City Manager, or his designee, to execute Amendment No. 5 in the amount of $100,000 with HDR Engineering, Inc. for on -call services related to utility financial planning, utility rate determination, wholesale customer mediation expert testimony and other utility matters dealing with utility planning, finance, and growth management. (Attachment 7•1 Agenda Regular Council Meeting December 16, 2008 Page 7 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 23. Motion authorizing the City Manager or his designee to execute an agreement for adjustment of a six -inch (6 ") pipeline and a ten -inch (10 ") pipeline in an amount not to exceed $370,645 with NuStar Logistics, L.P., of San Antonio, Texas for the Corpus Christi International Airport Drainage Phase VI Project. (Attachment # 23) 24. Ordinance granting a temporary construction easement to Onyx Pipeline Company for a seventy -foot (70') wide strip of land located across the northern end of the Cefe Valenzuela Landfill; authorizing the City Manager or his designee to execute the temporary construction easement and other related documents for the conveyance of the easement. (Attachment # 24) 25. Motion authorizing the City Manager or his designee to execute a compliance agreement with the Texas Commission on Environmental Quality to address closure procedures for the J. C. Elliott Landfill. (Attachment # 25) 26. First Reading Ordinance - Revising Section 14 -222 (b)(3) Required Inspections, Code of Ordinances, City of Corpus Christi, to change the time periods required for electrical re -out inspections; providing for publication; providing for penalties; and providing an effective date. (Attachment # 26) 27.a. Second Reading Ordinance - Abandoning and vacating a 52,488.43- square foot portion of the Carmel Parkway public right -of -way, located between the South Staples Street and Gollihar Road street rights -of -way; subject to compliance with the specified conditions. (First Reading 12/09/08) (Attachment # 27) 27.b. Second Reading Ordinance - Abandoning and vacating a 5,040.17- square foot portion of dedicated public right -of -way, located just west of the South Staples Street public right -of -way, and north of the Carmel Parkway public right -of -way; subject to compliance with the specified conditions. (First Reading 12/09/08) (Attachment # 27) 28. Second Reading Ordinance - Appropriating $150,000 of anticipated revenue from rental income at Sunrise Beach on Lake Corpus Christi in the No. 4010 Water Fund for the nnnratinn and maintananra of tha Water rlonartmant'c farilih, at Agenda Regular Council Meeting December 16, 2008 Page 8 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Sunrise Beach; amending the FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 to increase proposed expenditures and anticipated revenues by $150,000 each. (First Reading 12/09/08) (Attachment # 28) 29. Second Reading Ordinance - Amending the Code of Ordinances, Chapter 6, Animal Care and Control, Section 6 -13, to establish a new provision regarding denial of registration; amending Section 6 -14 to establish a new provision regarding a reapplication period; amending Section 6 -76, revising provisions related to administrative hearings; providing for an effective date; providing for penalties. (First Reading 12/09/08) (Attachment # 29) J. PUBLIC HEARINGS: DOWNTOWN TAX INCREMENT FINANCING DISTRICT (TIF): 30. Public hearing and Second Reading Ordinance to consider designating a certain area within the jurisdiction of the City of Corpus Christi as a Tax Increment Financing (TIF) District to be known as 'Reinvestment Zone Number Three, City of Corpus Christi, Texas ", establishing a Board of Directors for the Reinvestment Zone, and other matters relating thereto. (First Reading 12/09/08) (Attachment # 30) STREET CLOSURES: 31. Public hearing and First Reading Ordinance to consider abandoning and vacating a 1,945- square foot portion of the Lakeside Drive and Mounts Drive (undeveloped and unsurfaced) public street rights -of -way, located at the intersection of the Lakeside Drive and Mounts Drive public street right -of -way; subject to compliance with the specified conditions. (REQUEST FOR POSTPONEMENT UNTIL 01/13/09) (Attachment # 31) 32.a. Public hearing and First Reading Ordinance to consider abandoning and vacating the Avenue "F public street right -of- way (1.248 acres) from the East Navigation Boulevard public right -of -way to the Breakwater Street public right -of -way, subject to compliance with specified conditions. (Attachment # 32) Agenda Regular Council Meeting December 16, 2008 Page 9 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 32.b. Public hearing and First Reading Ordinance to consider abandoning and vacating a portion of the Texaco Road street right -of -way (0.384 acres), from the East Navigation Boulevard public street right -of -way, north approximately 278 feet to the city limit line, subject to compliance with specified conditions. (Attachment # 32) 32.c. Public hearing and First Reading Ordinance to consider abandoning and vacating a portion of the Sigmor Road public street right -of -way (0.388 acres), from East Navigation Boulevard, north approximately 281 feet to the city limit line, subject to compliance with specified conditions. (Attachment # 32) 32.d. Public hearing and First Reading Ordinance to consider abandoning and vacating a portion of the East Navigation Boulevard public street right -of -way (9.367 acres), from the Avenue "F" public street right -of -way, west approximately 5,857 feet to the city limit line, subject to compliance with specified conditions. (Attachment # 32) 32.e. Resolution authorizing the City Manager or his designee to execute a Right -of -Way Agreement with the Port of Corpus Christi Authority for the purpose of exchanging real estate rights needed by each. party. (Attachment # 32) TRUST FUNDS 33. Ordinance repealing Ordinance 026215, adopted on April 12, 2005, which loaned, approved the transfer as needed; and appropriated a total not to exceed $3,500,000 from the Unreserved Fund Balance in the No. 3430 Wastewater CIP Fund to the Sanitary Sewer Trunk System Trust Fund, to be repaid to the No. 3430 Wastewater CIP Fund at an interest rate equal to the AAA Rated 5 -Year Municipal Bond Rate on the date of the loan, to fund the shortfall resulting from pending applications to the Sanitary Sewer Trunk System Trust Fund; and amended the 2004/2005 CIP Budget adopted by Ordinance #026188 to increase appropriations into the No. 3430 Wastewater CIP Fund by $3,500,000. (Attachment # 33) Agenda Regular Council Meeting December 16, 2008 Page 10 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 34. Ordinance appropriating and approving the transfer of $1,300,000 from the Unreserved Fund Balance in the No. 3430 Wastewater CIP Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. (Attachment #34) 35.a. Public hearing and Ordinance appropriating and approving the transfer of $700,000 from the unreserved fund balance in the No. 4030 Water Arterial Transmission and Grid Main Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. (Attachment # 35) 35.b. Public hearing and Ordinance appropriating and approving the transfer of $600,000 from the unreserved fund balance in the No. 4030 Water Distribution Main Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. (Attachment # 35) 35.c. Public hearing and Ordinance appropriating and approving the transfer of $350,000 from the unreserved fund balance in the No. 4220 Sanitary Sewer Collection Line Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. (Attachment # 35) PLATTING ORDINANCE AMENDMENTS: 36.a Public hearing and First Reading Ordinance to consider amending the Platting Ordinance by adding Sections V.B.5.b)(13) and V.B.6.b)(13); revising Sections V.B.5.b)(1), (2) and (5), V.B.5.e)(1) and (2), V.B.5.h), V.B.6.b)(1), (2) and (10), V.B.6.e)(1) and (2), and V.B.6.h) by establishing density factors used to calculate lot and acreage fees, reassigning the distribution of surcharge fees, and changing the period for reviewing fees for the water and sanitary sewer trust funds; amending the Comprehensive Plan; providing for repeal of conflicting ordinances; providing for penalties; and providing for publication. (Attachment # 36) 36.b. Public hearing and First Reading Ordinance —Amending Section 14 -1341, the Code of Ordinances, City of Corpus Christi, regarding the addition of a density factor to lot and acreage fees for Water and Wastewater infrastructure; providing for publication. (Attachment # 36) Agenda Regular Council Meeting December 16, 2008 Page 11 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) K. REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS. AND ORDINANCES: 37.a. Presentation on the issuance of municipal bonds. (Attachment # 37) 37.b. Resolution approving a Debt Management Policy for the City of Corpus Christi. (Attachment # 37) 38. Resolution granting a variance from the Guidelines and Criteria for granting tax abatement and authorizing the execution of an agreement with Waterfront Communications, L.L.C., and providing for temporary property tax abatement for additional improvements valued at approximately $217,225.63, to be made after January 1, 2009, to the property located at 1024 Leopard Street, Corpus Christi, Nueces County, Texas. (Attachment# 38) 39.a. Ordinance appropriating $392,847.81 from the unappropriated bond proceeds and interest eamings from the Sanitary Landfill 2006 CIP Fund No. 3362 for the J. C. Elliott Landfill Final Cover System (Phases 4 -6) and Landfill Gas Collection System project; changing the FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 to increase appropriations by $392,847.81. (Attachment # 39) 39.b. Motion waiving a bid irregularity, and authorizing the City Manager, or his designee, to execute a construction contract with Environmental Specialties International of Baton Rouge, Louisiana, in the amount of $6,769,018.19 for the Base Bid and Additive Alternate for the J. C. Elliott Landfill Final Cover System (Phases 4 -6) and Landfill Gas Collection System. (Attachment #39) 39.c. Motion authorizing the City Manager, or his designee, to execute a contract for engineering materials testing services with Kleinfelder, Inc, of Corpus Christi, Texas, in the amount of $465,275.00 for construction of J. C. Elliott Landfill Final Cover System (Phases 4 -6) and Landfill Gas Collection System. (Attachment # 39) 40. Second Reading Ordinance - Approving the FY 2009 Capital Budget and Capital Improvement Planning Guide in the amount of $161,285,700. (First Reading 12/09/08) (Attachment # 40) Agenda Regular Council Meeting December 16, 2008 Page 12 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 41. Second Reading Ordinance - Amending the Code of Ordinances, Chapter 23, Health and Sanitation, Section 23 -76, Smoking Prohibitions, to repeal the existing provisions of the section and enact new provisions regarding smoking; providing for penalties. (First Reading 12/09/08) (Attachment # 41) L. PRESENTATIONS: Public comment will not be solicited on Presentation items. 42. 20th Annual "Feast of Sharing" (Attachment # 42) 43. Report on Calallen Independent School District by Dr. Arturo Almendarez, Superintendent (To be considered at approximately 1:00 p.m.) (Attachment # 43) 44. Corpus Christi Economic Development Corporation (EDC) - - Quarterly Report (Attachment # 44) 45. Local Economic Condition Update (Attachment # 45) M. MEETING OF CITY CORPORATION: 46. CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION (CCCIC): (Attachment # 46) AGENDA CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION REGULAR MEETING Date: Tuesday, December 16, 2008 Time: During the meeting of the City Council beginning at 10:00 a.m. Location: City Council Chambers City of Corpus Christi 1201 Leopard Street Corpus Christi, Texas 78401 1. President John E. Marez calls meeting to order. 2. Secretary Armando Chapa calls roll. Agenda Regular Council Meeting December 16, 2008 Page 13 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Board of Directors Officers John E. Marez, Pres. Angel R. Escobar, General Manager Melody Cooper, Vice Pres. Armando Chapa, Secretary Larry Elizondo, Sr. Mary Juarez, Asst. Secretary Henry Garrett Cindy O'Brien, Treasurer Mike Hummell Constance Sanchez, Asst. Treas. Bill Kelly Priscilla Leal Michael McCutchon Nelda Martinez 3. Approval of the minutes of September 9, 2008. 4. Approval of the financial report. 5. Motion authorizing the General Manager or his designee to execute a subrecipient agreement with The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. 6. Public Comment. 7. Adjoumment. (RECONVENE REGULAR COUNCIL MEETING) N. 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: Agenda Regular Council Meeting December 16, 2008 Page 14 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 1. MAKE A STATEMENT OF FACTUAL INFORMATION. 2. RECITE AN EXISTING POLICY IN RESPONSE TO THE INQUIRY. 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. O. 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 Government Code, and that the City Council specifically expects to go into executive session on the following matters. In the event the Council elects to go into executive session regarding an agenda item; the section or sections of the Open Meetings Act authorizing the executive session will be publicly announced by the presiding office. 47. Executive session pursuant to Texas Govemment Code, Section 551.074 to deliberate the employment and duties of the City Manager with possible discussion and action related thereto in open session. 48. Executive session under Texas Government Code Section 551.087 to deliberate the offer of financial or other incentive to a business prospect to locate, stay, or expand in or near the City of Corpus Christi, with possible discussion and action in open session. Agenda Regular Council Meeting December 16, 2008 Page 15 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) P. ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the City's official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at 3:30 p.m., an December 10, 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. City Council Goals 2007 -2009 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 Requested Council Action: 12/16/08 Alternate Council Date: 1/13/09 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the lease- purchase of one (1) Caterpillar 120M Motor Grader, one (1) Caterpillar CB -534D Vibratory Asphalt Compactor, and two (2) Caterpillar PS -150C Pneumatic Compactor from Holt -Cat, Irving, Texas for a total amount of $472,927 of which $35,267.16 is budgeted in FY 2008 -2009. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The equipment will be used by the Street Department. All units are replacements to the fleet. Financing will be provided through the City's lease - purchase program. ************************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Purpose: Basis of Award: Funding: * This equipment will be used by the Street Department in the construction and maintenance of paved roads. The motor grader will be used to spread the road base material, and grade the road base to proper grade. The compactors will be used to compress the surface of the road. All units are replacements to the fleet. The equipment will be purchased through the cooperative purchasing agreement with the TLGPC. TLGPC is administered by the Texas Association of School Boards (TASB) and co- sponsored by the Texas Municipal League (TML) and the Texas Association of Counties (TAC). TLGPC acts as an independent agency awarding exclusive cooperative purchasing contracts for its members. The Texas Local Government Purchasing Cooperative (TLGPC) awarded the contract to Holt -Cat, Irving, Texas; however, Holt -Cat has thirteen locations throughout the State of Texas. As such, the Corpus Christi office will be providing the equipment, delivery and service of the units. The motor grader will be funded through the City's lease- purchase financing agreement for a sixty -month period. The estimated interest rate is 4.5 %. The actual interest rate will be determined after acceptance of the vehicles. The estimated annual payment is $39,436.68. Total estimated cost over the sixty -month period, including principal of $176,280.00 and interest of $20,903.40, is $197,183.40. Street Department - Lease Payments (4 months) FY08 /09 530190- 1020 -12410 $13,145.56 Capital Outlay Item No. 10 —1— Requested Council Action: 12/16/08 Alternate Council Date: 1/13/09 The compactors will be funded through the City's lease- purchase financing agreement for a sixty -month period. The estimated interest rate is 4.5 %. The actual interest rate will be determined after acceptance of the vehicles. The estimated annual payment is $66,364.80. Total estimated cost over the sixty -month period, including principal of $296,647.00 and interest of $35,177.00, is $331,824.00. Street Department - Lease Payments (4 months) FY08 /09 530190 -1020 -12430 $22,121.60 Capital Outlay Item No. 11 & 12 The amount of funds shown above are the funds budgeted for lease payments for FY 2008 -2009. Funds will be requested by the using department for FY 2009 -2010 and all subsequent budget years during the normal budget process. Mic e1 Barrera Assistant Director of Financial Services pJetay 1e3o1 puvis 00 m< � � #0/§ EE1E \222 00 wc- c(@� - ®7£ n El } co g E k } 0 0 J. 0.1 ID ID at CD CD CD ID 41 CU CO 0 CD al to 2 w \\\\ \ \\} Eft EA 01 01 to ca co V on to 14 00 C \ }\\ \ \ \\\ \ \\ 00'64L'683 (/ g_03 0 o q)§ k r ( Z * \ 0 3 2 Requested Council Action: 12/16/08 Alternate Council Date: 01/13/09 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the lease /purchase of one (1) Sterling truck tractor from Grande Truck Center, San Antonio Texas for a total amount of $84,504. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The unit is a replacement to the fleet and will be used by Street Services. Financing for the truck tractor will be provided through the City's lease /purchase financing program. **************** s************************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Purpose: Basis of Award: The truck tractor will be used by Street Services to transport an emulsion oil tanker used in the City's seal coat operations. The unit is a replacement to the fleet. The truck tractor will be purchased through the cooperative purchasing agreements with HGAC and TLGPC. HGAC and TLGPC act as purchasing agents for participating members through the Inter -local Cooperation Act and abide by all Texas statutes regarding competitive bidding requirements. Price Comparison: The City purchased a similar truck tractor for Street Services in 1986 for a unit price of $44,550.00. Funding: Truck Tractor — Lease Purchase Street Services 1020 - 12430 - 530190 FY08 -09 (5 months) $7,877.05 Capital Outlay Item No. 8 The truck tractor will be funded through the City's lease- purchase financing agreement for a sixty-month period. The estimated interest rate is 4.500 %. The actual interest rate will be determined after acceptance of the vehicle. The estimated annual payment is $18,904.92. Total estimated cost over the sixty -month period, including principal of $84,504.00 and interest of $10,020.60 is $94,524.60. Michael Barrera Assistant Director of Financial Services —7— CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: MARIA GARZA DATE: 01/13/09 ITEM DESCRIPTION QTY. UNIT PRICE SHEET BI- 0074 -09 1. Sterling AT9500 Truck Tractor 1 Each Award Total GRANDE TRUCK CENTER SAN ANTONIO, TX UNIT PRICE $84,504.00 $84,504.00 3 CITY COUNCIL AGENDA MEMORANDUM December 16, 2008 AGENDA ITEM: RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO PARTICIPATE IN AN INTERLOCAL AGREEMENT WITH HARRIS COUNTY, TEXAS ALLOWING THE CITY OF CORPUS CHRISTI, TEXAS TO SECURE GOODS AND SERVICES COMPETITIVELY PROCURED BY HARRIS COUNTY, TEXAS, WHEN IN THE BEST INTEREST OF THE CITY. ISSUE: The City of Corpus Christi may realize savings and efficiencies by securing goods and services competitively procured by Harris County, Texas. REQUIRED COUNCIL ACTION: Approval of the Resolution. CONCLUSION AND RECOMMENDATION: A•Dro al o ,t esolution. Attachments: Resolution Michae Barre Assistant Director of Financial Services RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO PARTICIPATE IN AN INTERLOCAL AGREEMENT WITH HARRIS COUNTY, TEXAS ALLOWING THE CITY OF CORPUS CHRISTI, TEXAS TO SECURE GOODS AND SERVICES COMPETITIVELY PROCURED BY HARRIS, COUNTY, TEXAS, WHEN IN THE BEST INTEREST OF THE CITY. WHEREAS, the City of Corpus Christi, a political subdivision of Texas, pursuant to the authority granted by Chapter 791, Texas Government Code, as amended, desires to participate in an interlocal agreement with Harris County, Texas on a voluntary basis, when, in the opinion of the City Manager or his designee, it is in the best interest of the City of Corpus Christi and beneficial to taxpayers through anticipated savings and efficiencies. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. The City Manager or his designee is hereby authorized and directed to sign and deliver all necessary requests and other documents, including a participation agreement, in connection with an interlocal agreement with Harris County, Texas for and on behalf of the City of Corpus Christi, at no cost to the City. ATTEST CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved as to form: 02- Dec -08 MARY KAY FISCHER, CITY ATTORNEY By: 4litil\a/40-' 0,14 Veronica Ocarfas Assistant City Attomey —12— CORPUS CHRISTI, TEXAS DAY OF , 2008 The above resolution was passed by the following vote: Henry Garrett Priscilla Leal Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly John Marez Nelda Martinez Michael McCutchon -13- CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 12/16/08 AGENDA ITEM: Resolution authorizing the submission of a grant application in the amount of $89,291.82 to the State of Texas, Criminal Justice Division for Year 10 funding available under the Victims of Crime Act (VOCA) Fund for the Police Department's Family Violence Unit with a City match of $19,578 and $4,000 in -kind services for a total project cost of $112,869.82 and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant, and declaring an emergency. ISSUE: Funding is available from the State of Texas, Criminal Justice Division, under the Victims of Crime Act (VOCA) that provides funds to projects with the primary mission of providing direct services to victims of crime. BACKGROUND INFORMATION: The grant continues the Victim Assistance Program that provides assistance to victims and family members with the goal of lessening the short and long- term trauma experienced as a direct result of victimization. Victims and their family members are provided with information, reassurance, and guidance for resolving problems and referrals to other social service agencies. The grant covers the salary/ benefits for two Victim Case Managers, equipment, supplies, training, and mileage. The case managers provide services to victims including information and referral, criminal justice support and case information, assistance with filing forms for benefits available through the Crime Victims' Compensation under the Texas Crime Victims Compensation Act, informing victims of their rights as victims, advocating on victims behalf with other agencies and within the criminal justice system, and transportation to shelter or to court. Primary and secondary victims of crime are assisted in an effort to stabilize their lives after victimization, help victims to understand and participate in the criminal justice system, and provide victims of crime with a measure of safety and security. The case managers also work closely through coalitions and with other agencies in an ongoing effort to identify needs and to improve the quality and continuity of services to victims in the community. Additionally, they provide training to community groups regarding victimization issues and available resources, thereby increasing community awareness. FUNDING: The State provides $89,291.82 for the salary/benefits of two Victim Case Managers and equipment/supplies, volunteer hours contribute $4,000 as in -kind contribution, and the City contributes $19,578 for equipment, supplies, mileage, and training. The funding is not on a declining percentage or ending funding cycle, but is subject to the federal appropriation awarded to the State for distribution. Funding is available 9/1/09 — 8/31/10. REQUIRED COUNCIL ACTION: Approval to submit the application. —17— a. M.ul. Walsh Acting Chief of Police RESOLUTION AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION IN THE AMOUNT OF $89,291.82 TO THE STATE OF TEXAS, CRIMINAL JUSTICE DIVISION FOR YEAR 10 FUNDING AVAILABLE UNDER THE VICTIMS OF CRIME ACT (VOCA) FUND FOR THE POLICE DEPARTMENT'S FAMILY VIOLENCE UNIT WITH A CITY MATCH OF $19,578 AND $4,000 IN -KIND SERVICES AND AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO APPLY FOR, ACCEPT, REJECT, ALTER OR TERMINATE THE GRANT, AND DECLARING AN EMERGENCY. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager, or the City Manager's designee, is authorized to submit a grant application to the State of Texas, Criminal Justice Division in the amount of $89,291.82 for Year 10 funding available under the Victims of Crime Act (VOCA) Fund for the Police Department's Family Violence Unit. The City match for this grant is $19,578 and $4,000 in kind services. SECTION 2. The City Manager, or the City Manager's designee, may apply for, accept, reject, agree to alter the terms and conditions, or terminate the grant, if the grant is awarded to the City. SECTION 3. In the event of the loss or misuse of these Criminal Justice Division funds, the City of Corpus Christi assures that the funds will be returned to the Criminal Justice Division in full. ATTEST: Armando Chapa City Secretary APPROVED: November 2 • , 2008. Bv: T. risha gang Assistant City Attorney For City Attomey Reso - grant -Voca —18— THE CITY OF CORPUS CHRISTI 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Reso-grant -Vora —19— 2 CITY COUNCIL AGENDA MEMORANDUM Date: 12/16/2008 AGENDA ITEM: Resolution authorizing the submission of a grant application in the amount of $100,964.38 to the State of Texas, Criminal Justice Division for Year 10 funding available under the Violence Against Women Act (VAWA) Fund for the Police Department's Family Violence Unit with a City match of $42,088.74, an in -kind match of $16,800, for a total project cost of $159,853.12 and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant and declaring an emergency. ISSUE: Year 10 funding is available 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 provides funds for 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 concerning alternatives, 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, walk in traffic, and record keeping. 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: Approval to submit the application. FUNDING: The State provides $100,964.38 for the salary/benefits of two Victim Case Managers, a Staff Assistant, equipment, supplies, training, and mileage, volunteer hours contribute $16,800 as in -kind contribution, and the City contributes $42,088.74 for partial salary match, training, travel, supplies and miscellaneous equipment as the required 35% match. The funding is not on a declining percentage or ending funding cycle. CONCLUSION AND RECOMMENDATION: Staff recommends submitting the grant. M. J. Walsh Acting Chief of Police -23- RESOLUTION AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION IN THE AMOUNT OF $100,964.38 TO THE STATE OF TEXAS, CRIMINAL JUSTICE DIVISION FOR YEAR 10 FUNDING AVAILABLE UNDER THE VIOLENCE AGAINST WOMEN ACT (VAWA) FUND FOR THE POLICE DEPARTMENT'S FAMILY VIOLENCE UNIT WITH A CITY MATCH OF $42,088.74 AND IN -KIND MATCH OF $16,800 FOR A TOTAL PROJECT COST OF $159,853.12 AND AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO APPLY FOR, ACCEPT, REJECT, ALTER OR TERMINATE THE GRANT; AND DECLARING AN EMERGENCY. 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 $100,964.38 to the State of Texas, Criminal Justice Division for Year 10 funding available under the Violence Against Women Act (VAWA) Fund for the Police Department's Family Violence Unit with a City match of $42,088.74 and in- kind match of $16,800 for a total project cost of $159,853.12 and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant; and declaring an emergency. SECTION 2. In the event of the loss or misuse of these funds, the City of Corpus Christi assures that the funds will be retumed, in full, to the State of Texas, Office of the Govemor, Criminal Justice Division. ATTEST: Armando Chapa City Secretary APPROVED: December 2, 2008. By: T. A'risha Dang Assistant City Attorney For City Attomey Reso-grant -VAWA —24— THE CITY OF CORPUS CHRISTI 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Reso -grant -VAWA -25- 2 6 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 12/16/2008 AGENDA ITEM: Item A. A resolution authorizing the City Manager, or his designee, to execute a sub - recipient agreement in the amount of $1,500,730 with the Office of the Govemor's Division of Emergency Management Homeland Security Grant Program, and authorizing the City Manager, or his designee, to accept, reject, alter or terminate the grant; and declaring an emergency. Item B. A motion authorizing the City Manager, or his designee, to accept a grant in the amount of $1,500,730 from the Office of the Governor's Division of Emergency Management Homeland Security Grant Program for the purchase of specialized equipment and training. Item C. An ordinance appropriating $1,500,730 from the Office of the Govemor's Division of Emergency Management Homeland Security Grant Program into the No. 1062 Fire Grants Fund for the purchase of specialized equipment and training; and declaring an emergency. ISSUE: The Office of the Governor's Division of Emergency Management has informed the City that our jurisdiction has been awarded a grant in the amount of $1,500,730 from the Fiscal Year 2008 Homeland Security Grant Program. The purpose of the grant is to provide first responders with enhanced capabilities for detecting, deterring, disrupting, preventing and responding to potential threats of manmade, natural disasters and acts of terrorism. A need analysis has been conducted and specialized equipment has been identified. Bids will be secured for the purchase of the equipment. REQUIRED COUNCIL ACTION: Council approval is required to authorize the City Manager to execute a sub - recipient agreement, accept the grant and appropriate funds. PREVIOUS COUNCIL ACTION: Council has previously approved accepting funds from the 2003, 2006 and 2007 State Homeland Security Grant Programs. CONCLUSION AND RECOMMENDATION: Staff recommends approving the resolution and ordinance to execute a sub - recipient agreement, accept the grant and appropriate funds in the amount of $1,500,730. Attachments: I. Resolution 2. Ordinance 3. Notice of Sub - recipient Award 4. Sub - Recipient Agreement Richarrd off oks Fire Chief C:\Documents and Settings\RickR\My Documents \1500730 GRANr.doc —29— BACKGROUND INFORMATION The U. S. Department of Homeland Security annually issues grants to the State of Texas. The Governor's Division of Emergency Management serves as the State's agent for the various grant programs. These funds shall be used to provide fast responders with enhance capabilities for detecting, deterring, disrupting, preventing and responding to potential threats of man made, natural disaster and acts of terrorism. C:\Documents and Settings RickR\My Documents \1500730 GRANT.doc —30— RICK PERRY Governor DIVISION OF EMERGENCY MANAGEMENT Office of the Governor Mailing Address: PO Box 4087 Austin, Texas 78773 -0220 The Honorable Henry Garrett Mayor, City of Corpus Christi 1201 Leopard Street Corpus Christi, TX 78469 -9277 Dear Mayor Garrett: Contact Numbers: 512 -424 -2138 Duty Hours 512 -424 -2277 Non -Duty Hours 512 -424 -2444 Fax November 21, 2008 Physical Address: 5805 N. Lamar Blvd. Austin, Texas 78752 STEVEN McCRAW Director Office of Homeland Security JACK COLLEY Chief Your jurisdiction is being awarded a sub -grant for the Fiscal Year (FY) 2008 Homeland Security Grant Program (HSGP) to carry out homeland security projects that will significantly improve local and regional terrorism prevention, preparedness, and response capabilities. Proposed Local, regional, and urban area projects were grouped into investments that were submitted to U. S. Department of Homeland Security (DHS) for review and approval. Grant funds must be used for projects which support the investments approved by DHS, which are identified in Enclosure 1. The following additional grant- related documents are enclosed: • Notice of Sub - recipient Award (SRA) — Enclosure 2 The Notice of Sub - recipient Award for the 2008 HSGP must be signed by the chief elected official of your jurisdiction unless that authority has been delegated. Other signatures will require an accompanying statement from the chief elected official authorizing the individual to sign for the jurisdiction. • Direct Deposit Authorization - Enclosure 3 A. GDEM must have a current Direct Deposit Authorization from your jurisdiction in order to transfer grant funds electronically to a designated bank account to reimburse you for grant- funded expenses. Additional copies are available from the Texas State Comptroller's website at http: / /www.window. state.t x. us /taxinfo /taxforms /74- 158.pdf. An appropriate local official, typically your finance officer, must sign the Direct Deposit Authorization. B. If you submitted a completed Direct Deposit Authorization form with prior Homeland Security Grant Program awards, you do not need to submit another unless your bank account information has changed. The deadline for returning the signed Notice of Sub - Recipient Award and Direct Deposit Authorization 4f applicable) is January 8, 2009. The offer of a homeland security sub -grant will be withdrawn if the required materials are not postmarked by the due date. Extensions to this date will not be granted. Please submit above documents to one of the following addresses: -31- The deadline for returning the signed Notice of Sub - Recipient Award and Direct Deposit Authorization (if applicable) is January 8, 2009. The offer of a homeland security sub -grant will be withdrawn if the required materials are not postmarked by the due date. Extensions to this date will not be granted. Please submit above documents to one of the following addresses: Mail: Division of Emergency Management Attention: SAA Section P.O. Box 4087 Austin, TX 78773 -0270 Courier: Division of Emergency Management Attention: SAA Section 5805 N. Lamar Austin, TX 78752 Please retain a copy of each form for your records. If you have any program questions regarding HSGP, please contact Edwin Staples at the SAA at 512- 377 -0002 or 512- 377 -0000. Sincerely, Jack Colley Chief JC:es esigy Enclosures: 1. DHS Approved Investments 2. 2008 Notice of Sub - recipient Award 3. Direct Deposit Authorization -32- -33- Governor's Division of Emergency Management / ya esuf mvo 2008 Sub - Recipient Agreement for City of Corpus Christi Date of Award November 18, 2008 1. Sub - Recipient Name and Address 2. Prepared by: Seals, Freddie 13. SAA Award Number: 08 -SR 17000 -01 Mayor Henry Garrett, Jr. City of Corpus Christi 1201 Leopard Street Corpus Christi, TX 78401 4. - Federal Grant Information Federal Grant Title: Homeland Security Grant Program Federal Grant Award Number: 2008- GE- T8-0034 Date Federal Grant Awarded to GDEM: September 1, 2008 Federal Emergency Management Federal Granting Agency: Agency National Preparedness Directorate S. , Award Amount and Grant Breakdowns Total Award Amount $1,500,73000 Note: Additional Budget Sheets (Attachment A): C Yes No SHSP 97.073 SHSP -LEAP 97.073 - UASI 97.008 UASI -LEAP 97.008 CCP 97.053 MMRS 97.071 $726,650.00 $443,215.00 $0.00 $0.00 $9,644.00 $321,221.00 This award supersedes all previous awards. Performance Period: Sep 1, 2008 to Jan 15, 2011 6. Statutory Authority for Grant: This project is supported under Public Law 110 -161, the Department of Homeland Security Appropriations Act of 2008. 7. Method of Payment: Primary method is reimbursement. See the enclosed instructions for the process to follow in the submission of invoices. 8. Debarment /Suspension Certification: The Sub - Recipient certifies that the subgrantee and its contractors /vendors are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded by any federal department or agency and do not appear in the Excluded Parties List System at http: / /www.epls.gov. 9. - + Agency Approval Approving GDEM Official: Jack Colley, Governor Division of Emergency Management Office of the Governor Signature of GDEM Official: I ��, n -/ jli",,r� 10. - - - Sub- Recipient Acceptance _ I have read and understand the attached Terms and Conditions. Type name and title of Authorized Sub - Recipient official: Angel Escobar, City Manager Signature of Sub- Recipient Official: 11. Enter Employer Identification Number (EIN) / Federal Tax Identification Number: 74- 6000574 12. Date Signed : 13. DUE DATE: January 2, 2009 Signed award and Direct Deposit Form (if applicable) must be returned to GDEM on or before the above due date. -33- RESOLUTION AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A SUB - RECIPIENT AGREEMENT IN THE AMOUNT OF $1,500,730 WITH THE OFFICE OF THE GOVERNOR'S DIVISION OF EMERGENCY MANAGEMENT HOMELAND SECURITY GRANT PROGRAM, AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO ACCEPT, REJECT, ALTER, OR TERMINATE THE GRANT; AND DECLARING AN EMERGENCY. 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 execute a sub - recipient agreement in the amount of $1,500,730 with the Office of the Governor's Division of Emergency Management Homeland Security Grant Program; and declaring an emergency. 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 State of Texas, Office of the Governor's Division of Emergency Management Homeland Security. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: December 8, 2008. By: Trisha Dang Assistant City Attorney For City Attorney —34— 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 -35- 2 ORDINANCE APPROPRIATING $1,500,730 FROM THE OFFICE OF THE GOVERNOR'S DIVISION OF EMERGENCY MANAGEMENT HOMELAND SECURITY GRANT PROGRAM INTO THE NO. 1062 FIRE GRANTS FUND FOR THE PURCHASE OF SPECIALIZED EQUIPMENT AND TRAINING; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $1,500,730 is appropriated from the Office of the Governor's Division of Emergency Management Homeland Security Grant Program into the No. 1062 Fire Grants Fund for the purchase of specialized equipment and training. 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 on this the _ of December, 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved as to form December 8 2008 T. jyrisha Dang Assistant City Attorney For City Attorney -36-- 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 -37- 7 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Item A: Ratifying acceptance of a $738,215 grant awarded by the Area Agency on Aging of the Coastal Bend for the FY 2008 Senior Community Services, Elderly Nutrition Program. Item B: Ratifying appropriation of a $738,215 grant from the Area Agency on Aging of the Coastal Bend in the No.1067 Parks and Recreation grants fund for the FY 2008 Senior Community Services, Elderly Nutrition Program; and declaring an emergency. Item C: Ratifying acceptance of a $257,311 grant awarded by the Texas Department of Aging and Disability Services for the FY 2008 Senior Community Services, Title XX Meals on Wheels Program. Item D: Ratifying the appropriation of a $257,311 grant from the Texas Department of Aging and Disability Services in the No. 1067 Parks and Recreation grants fund for the FY 2008 Senior Community Services, Title XX Meals on Wheels Program; and declaring an emergency. ISSUE: The ENP grant is made available through the Area Agency on Aging of the Coastal Bend and provides funding for the continuation of the Senior Community Services, Elderly Nutrition Program. This funding includes $683,546 for the FY 08 grant and a $54,669 carryover award for FY 07. The fund authorization period was effective October 1, 2007 through September 30, 2008. The Title XX grant is made available through the Texas Department of Aging and Disability Services for the continuation of the Senior Community Services, Title XX Meals on Wheels Program. This funding includes $257,311 for the FY 08 grant. The fund authorization period was effective October 1, 2007 through September 30, 2008. REQUIRED COUNCIL ACTION: Council authorization is required to accept and appropriate Federal grant funds from the Area Agency on Aging of the Coastal Bend to fund the Elderly Nutrition Program and from the Texas Department of Aging and Disability Services for the Title XX Meals on Wheels Program from October 1, 2007 through September 30, 2008. -41- PREVIOUS COUNCIL ACTION: City Council accepts and appropriates Federal funds from the Area Agency on Aging of the Coastal Bend and the Texas Department of Aging and Disability Services for continuation of the Senior Community Services, Elderly Nutrition Program and Title XX Meals on Wheels Program on an annual basis. FUNDING: The Area Agency on Aging of the Coastal Bend is issuing a grant in the amount of $738,215 in Federal funds to the City of Corpus Christi. This includes $683,546 for the continuation of the Senior Community Services Elderly Nutrition Program from October 1, 2007 through September 30, 2008 and $54,669 in FY 07 carryover funds. The Texas Department of Aging and Disability Services is issuing a grant in the amount of $257,311 in State funds to the City of Corpus Christi for the continuation of the Title XX Meals on Wheels Program. CONCLUSION AND RECOMMENDATION: Council authorization is requested to accept and appropriate funds from the Area Agency on Aging of the Coastal Bend and the Texas Department of Aging and Disability Services. ✓r na Sally Ga Director Parks a Recreation Department Attachments: Background Information -42- BACKGROUND INFORMATION The City receives grant funding for the Senior Community Services Program through federal and state grants that must be appropriated each year. These projects include the Elderly Nutrition Program (Congregate and Homed Delivered Meals), Title XX Meals on Wheels and Benefits Counseling. The Benefits Counseling service is a component of the Health Information Counseling & Advocacy Program of Texas (HICAP). Senior Center Supervisors and program administrators are Certified Benefits Counselors who provide one -to -one information about both public benefits and private health insurance. Benefits counselors may also provide certain services for advance directives as outlined in the Texas Government Code §81.1011. The Elderly Nutrition Program coordinates the congregate and home delivered meals operations to provide a fully prepared, well - balanced noon meal to senior center members and homebound and /or disabled persons throughout the City. The meals are prepared at the Nutrition Education and Service Center located on the Del Mar College West Campus. During fiscal year October 2007 through September 2008 we served 103,337 congregate meals; 111,764 home delivered meals; 51,982 Title XX Meals on Wheels and 776 hours of Benefits Counseling service units. These items has not previously been presented to City Council in anticipation of a "Final Notice of Grant Award" from the Area Agency on Aging and a budget amendment for increased funding from the Texas Department of Aging and Disability Services. The practice of appropriating funds upon final grant award notification was adopted in lieu of requesting multiple City Council appropriations as each Notice of Grant Award or Budget Amendment was processed. For future appropriations, Staff proposes to request City Council approval based on planning allocations outlined in the Notice of Intent to Contract from the funding entities. Senior center operations are supported solely through the City's General Fund and offer a comprehensive lifestyle enhancement component which includes assessment; recreation /leisure activities; health and wellness programs; nutrition education; advocacy; health education; community education; access and assistance; outreach; referrals; emergency transportation and escort; special interest classes, a SeniorNet Computer Technology Center and special events. —43— RESOLUTION RATIFYING ACCEPTANCE OF A $738,215 GRANT AWARDED BY THE AREA AGENCY ON AGING OF THE COASTAL BEND FOR THE FY 2008 SENIOR COMMUNITY SERVICES, ELDERLY NUTRITION PROGRAM. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The acceptance of a $738,215 grant awarded by the Area Agency on Aging for the FY 2008 Senior Community Services, Elderly Nutrition Program is hereby ratified. INTRODUCED AND PASSED by the City Council of the City of Corpus Christi, Texas, on the _ day of December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved: December 5, 2008 Lisa Aguiltr' Assistant City Attorney For City Attorney H:tLEG- DIR\Lisat2008 Resolutions\Area Agency on Aging Dec i008.doc Corpus Christi, Texas Day of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla Leal John E. Marez Nelda Martinez Mike McCutchon H :LEG- DIR'Lisa\2008 ResolutionsWrea Agency on Aging Qgsit208.doc ORDINANCE RATIFYING APPROPRIATION OF A $738,215 GRANT FROM THE AREA AGENCY ON AGING OF THE COASTAL BEND IN THE NO. 1067 PARKS AND RECREATION GRANTS FUND FOR THE FY 2008 SENIOR COMMUNITY SERVICES, ELDERLY NUTRITION PROGRAM; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the appropriation of a $738,215 grant from the Area Agency on Aging of the Coastal Bend in the No. 1067 Parks and Recreation grants fund for the FY 2008 Senior Community Services, Elderly Nutrition Program is hereby ratified. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the _ day of December, 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Approved: December 5, 2008 Lisa Aguilar (J Assistant City Attorney for the City Attorney Henry Garrett, Mayor H:1LEG- DIR\Lisa\2008 ORDINANCES rea Agency on Agiip4c 4 2008_1.doc 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, Henry Garrett, Mayor The City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla Leal John E. Marez Nelda Martinez Mike McCutchon H:1LEG- DIR\Lisa12008 ORDINANCES1Area Agency on Aging Dift 2008 1.doc RESOLUTION RATIFYING ACCEPTANCE OF A $257,311 GRANT AWARDED BY THE TEXAS DEPARTMENT OF AGING AND DISABILITY SERVICES FOR THE FY 2008 SENIOR COMMUNITY SERVICES, TITLE XX MEALS ON WHEELS PROGRAM. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The acceptance of a $257,311 grant awarded by the Texas Department of Aging and Disability Services for the FY 2008 Senior Community Services, Title XX Meals on Wheels Program is hereby ratified. INTRODUCED AND PASSED by the City Council of the City of Corpus Christi, Texas, on the day of December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved: December 5, 2008 Lisa Aguilar Assistant City Attorney for the City Attorney H:\LEG- DIRtLisa\2008 ResolutionsWMeals on Wheels December 5 2008.doc -48- Corpus Christi, Texas Day of 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla Leal John E. Marez Nelda Martinez Mike McCutchon H:1LEG- DIR\Lisa\2008 Resolutions Meals on Wheels December 5 2008.doc -49- ORDINANCE RATIFYING THE APPROPRIATION OF A $257,311 GRANT FROM THE TEXAS DEPARTMENT OF AGING AND DISABILITY SERVICES IN THE NO. 1067 PARKS AND RECREATION GRANTS FUND FOR THE FY 2008 SENIOR COMMUNITY SERVICES, TITLE XX MEALS ON WHEELS PROGRAM; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the appropriation of $257,311 grant from the Texas Department of Aging and Disability Services in the No. 1067 Parks and Recreation grants fund for the FY 2008 Senior Community Services, Title XX Meals on Wheels Program is hereby ratified. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the _ day of December, 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved: December 5, 2008 ti Lisa Aguil�rl Assistant City Attorney for the City Attorney H:\LEG- DIR\Lisa\2008 ORDINANCES\MeaJn Wheels Dec 5 2008.doc 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, Henry Garrett, Mayor The City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla Leal John E. Marez Nelda Martinez Mike McCutchon H:\LEG- DIR\Lisa\2008 ORDINANCESUvlealbs ?n Wheels Dec 5 2008.doc 8 CITY COUNCIL AGENDA MEMORANDUM December 16, 2008 AGENDA ITEM: A. Resolution authorizing the City Manager or Designee, to execute an Interlocal Agreement with Calallen Independent School District (ISD) for the City of Corpus Christi to operate a Latchkey program at Calallen ISD from January 1, 2009 through July 31, 2015. B. Ordinance appropriating $146,623 in the General Fund No. 1020 from the estimated revenues from Latchkey after school and summer registrations; changing FY 2008 -2009 Operating Budget adopted by Ordinance 027776 to increase estimated revenues and appropriations by $146,623 each; and declaring an emergency. ISSUE: The City Manager, or designee, is authorized to execute an Interlocal Agreement with the Calallen Independent School District for the City of Corpus Christi to operate a Latchkey program during the school year and summer months on Calallen ISD school grounds. A copy of the agreement is attached. This Resolution shall take effect and be in full force immediately after its adoption by the City Council. REQUIRED COUNCIL ACTION: The City Council is required to approve all interlocal governmental agreements. PRIOR COUNCIL ACTION: The City Council has not previously acted on this Calallen ISD Latchkey item. However, City Council has approved the Corpus Christi ISD Interlocal Agreement for the Latchkey program since 1985. FUNDING: Start up costs will include funds needed for salaries and training of new employees. Recreational supplies for the children will also need to be purchased prior to the start date. DFPS requires all centers to be operational prior to issuing a permit to operate. At the start of the program, revenues will be collected, which will then cover start- up costs and continuing operation of Calallen sites. CONCLUSION AND RECOMMENDATION: Staff recommends that the City Council approve this interlocal governmental agreement with the Calallen Independent School District. Attachments: Background information —55— ally :vlik, Direct +r Parks d Recreation BACKGROUND INFORMATION In September 2008, Calallen Independent School District administrators requested that the Parks and Recreation Latchkey program take over their current after school program. At that point, surveys were sent to Calallen parents to see if the change might be needed. Based on the overwhelming positive response, Latchkey plans to run three sites with approximately 200 children beginning January 2009. There are also plans to operate one Summer 2009 program with approximately 100 participants. The City of Corpus Christi Parks and Recreation Department currently operates the Latchkey After School Program at 30 Corpus Christi Independent School District elementary schools and 3 sites in the Flour Bluff Independent School District. This program serves over 2,000 children. The Latchkey Program also operates 5 sites during the summer months with approximately 600 children. The Latchkey Program has been in operation since 1985. The City of Corpus Christi is responsible for the administration of the program, including fee collection, providing and monitoring rules and regulations, hiring and training of staff, lesson plans, provision of supplies and equipment, and the coordination of inspections to determine compliance with health and safety codes. The Corpus Christi and Flour Bluff Independent School Districts provide the building and playground facilities for the Latchkey Program operated during Latchkey's full hours of operation sufficient to meet Latchkey program guidelines. This includes building utilities such as water, gas, electricity and access to telephones for emergency calls. The district agrees to conduct site inspections to determine compliance with applicable safety codes to include fire and gas lines and alarm systems. —56— RESOLUTION AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CALALLEN INDEPENDENT SCHOOL DISTRICT (ISD) FOR THE CITY OF CORPUS CHRISTI TO OPERATE A LATCHKEY PROGRAM AT CALALLEN ISD FROM JANUARY 1, 2009 THROUGH JULY 31, 2015. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager, or designee, is authorized to execute an Interlocal Agreement with the Calallen Independent School District for the City of Corpus Christi to operate a Latchkey program during the school year and summer months on Calallen ISD school grounds. A copy of the agreement is attached. SECTION 2. This Resolution shall take effect and be in full force immediately after its adoption by the City Council. ATTEST: Armando Chapa City Secretary APPROVED: November 25, 2008 op, ,t.4-2_ ,q C. Lisa Aguila Assistant City Attorney For City Attorney -57- THE CITY OF CORPUS CHRISTI 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 -58- Page 1 of 6 INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND CALALLEN INDEPENDENT SCHOOL DISTRICT FOR THE LATCHKEY PROGRAM This agreement is entered into between the City of Corpus Christi, a Texas municipal corporation ( "City"), acting through its duly authorized agent, City Manager, and Calallen Independent School District ( "District "), acting through its duly authorized agent, Superintendent, for purposes of the Texas Intergovernmental Cooperation Act, Government Code, Chapter 791, to achieve efficiency in meeting intergovernmental responsibilities. WHEREAS, the City is sponsoring an after- school child care and activities program for those elementary students who meet Latchkey's participant guidelines and who attend schools with Latchkey sites during the District school year which is approximately August of each year through June of the following year using several of the District's school campuses; and WHEREAS, the City is sponsoring the Latchkey Camps during the District's summer months which begin approximately June of each year and continue through August of the same year for those elementary students who meet Latchkey's participant guidelines; and WHEREAS, the District agrees to provide building, playground facilities, utilities, and janitorial services for the Latchkey program and Latchkey Camps, collectively defined as "Latchkey Program"; and WHEREAS, both parties endeavor to provide a safe after- school and summer vacation environment for Calallen ISD students; NOW, THEREFORE, the City and District, in consideration of the mutual covenants contained herein, agree as follows: 1. District Responsibilities. The District shall have the following obligations and responsibilities under this Agreement: a. District agrees to provide building and playground facilities for the Latchkey Program operated by the City during Latchkey's full hours of operation sufficient to meet latchkey program guidelines. This includes building utilities such as water, gas, electricity and access to telephones as required by Childcare Licensing; use of tables, chairs, televisions and vcr /dvd; and access to restrooms and playground facilities. b. District agrees to conduct site inspections to determine compliance with applicable safety codes. This includes yearly fire and gas line inspections and continual monitoring and repair of alarm systems and safety equipment. c. District agrees to provide health care supplies, including lined trashcans, paper towels and toilet paper for each site. H:\LEG- DIR\Lisa\2008 Parks and Recreation \Calallen ISD Latchkey INTERLOCAL COOPERATION AGREEMENT.doc —5 9— Page 2 of 6 d. District agrees to provide after - program custodial maintenance, including the emptying of trash containers, the sweeping and mopping of floors and spray waxing of furniture as needed. e. District agrees to provide at least 48 hours advance notice to the City if Latchkey is to be moved to a different area of the building. Space must be in compliance with State licensing requirements. 2. City Responsibilities. The City shall have the following obligations and responsibilities pursuant to this Agreement: a. The Latchkey staff is responsible for administration of the entire Latchkey Program, including, but not limited to: (1) Setting and collecting fees; (2) Preparing and enforcing rules and regulations related to student discipline; (3) Hiring and training of staff; (4) Ensuring compliance with established program guidelines. (5) Determining maximum number of Latchkey Program attendees at each site. b. City will be responsible for the repair to the facility or repair or replacement of equipment that is damaged or lost during the Latchkey Program. The decision as to repair or replacement of a damaged or lost item shall be mutually agreed upon by the City and District. City will reimburse District, for the damage or loss, at current market value. District will provide proof of value, of damaged or lost items, by providing City, any or all of the following: fixed asset records, purchase order or copies of invoice. c. City shall continue site inspections to determine compliance with health and safety codes. Latchkey staff will cooperate with school site personnel to monitor the site for a determination of and response to health and safety hazards. d. City shall be responsible for all Latchkey Program activities including arts and crafts and structured recreational play. This includes storing such materials at the sites where space allows. e. During the Latchkey program, the City shall provide the following cleaning services: cleaning the tops of tables; placing trash in trashcans; cleaning chairs; placing chairs under tables; and returning furniture or fixtures to their original arrangements. For safety purposes, Latchkey personnel will be instructed to not place chairs on tops of tables. 3. Term. This first term of this agreement begins January 1, 2009 and ends August 31, 2009. Thereafter, unless previously terminated as provided herein, this agreement renews automatically for a second term which begins September 1, 2009 and ends July 31, 2010. Thereafter, unless H:\LEG- DIR\Lisa\2008 Parks and Recreation \Calallen ISD Latchkey INTERLOCAL COOPERATION AGREEMENT.doc — 6 0 — Page 3 of 6 previously terminated as provided herein, this agreement renews automatically for a third term which begins August 1, 2010 and ends July 31, 2015. 4. Termination. This Agreement may be terminated by any of the following occurrences: A. By mutual agreement and consent of the City Manager and of District Superintendent. B. By either party upon written notice to the other party at least 60 days prior to the start of the District school year. C. By either party upon the failure of the party to fulfill its obligations as set forth in this Agreement, upon thirty days notice and opportunity to cure. 5. Uses of District Information and Records by the City. The City may, from time to time, have access to, and use of, confidential student information obtained from the District for the sole purpose of the assistance of District students' participation in the Latchkey Program. For students with special education requirements, the District will share information and records with the City regarding said students to ensure that the City's Latchkey Program employees are aware of any individual education plans or special needs for such students, so that appropriate accommodations may be made for such students. The City shall not release or disclose to the public or any third party student information or records without the prior written consent of the parent(s) of the minor in question, except as required by state or federal law. Each party shall take all steps necessary to ensure that the student information and records are viewed only by authorized representatives of the City for the permissible uses stated herein. Said information is considered confidential, and shall not be used by the City or its employees for private purposes 6. Expenses. Expenses incurred through Latchkey Program activities are the City's responsibilities. Facility and site expenses are the District's responsibilities. All funds expended by either party to fulfill obligations under this Agreement will be from currently available revenue at the time of each party's expenditure. 7. Licensing. City will maintain all licenses as may be required by the State of Texas. Monitors for Latchkey sites may make random visits to determine compliance with State guidelines. 8. Sites. The attached Exhibit A reflects the currently approved Latchkey sites. Before the start of new school year Latchkey Program, and before the start of summer Latchkey Program, the City and District shall meet to identify and mutually agree upon possible Latchkey program locations. Site selection is based on need for services as determined by community survey(s) and by availability of required space and fixtures. Selection is also based on access to restrooms, janitorial service availability, and other criteria as determined by the Parks and Recreation Department of the City and the District. Current space requirements are 30 square feet of indoor play space per child. If the City is cited for licensing violations that are due to Facility non- compliance issues, the City reserves the right to cease operating the Latchkey Program at that site based upon the compliance date established in the citation unless District chooses to remedy the non - compliance at its cost or allows City the right to implement non - structural remedies at its cost. H: \LEG- DIR \Lisa\2008 Parks and Recreation \Calallen ISD Latchkey INTERLOCAL COOPERATION AGREEMENT.doc —61— Page 4 of 6 9. Liability. To the extent permitted by law, neither party shall be responsible to the other for personal injuries, losses, claims or demands caused by the acts or omissions, if any, of such party or its agents, employees, contractors, patrons, guests, licenses or invitees related to City conducting the Latchkey Program at Calallen ISD sites. Liability, if any, of either party shall be that prescribed by the laws of the State of Texas. 10. Limitation on Location. Notwithstanding, section"above, all activities conducted in accordance with this Agreement must be conducted exclusively on a school campus of the Calallen Independent School District pursuant to this Interlocal Agreement. 11. Public Hearings. District will comply with Section 33.902 of the Education Code, as applicable, which requires a district with student population of more than 5,000 to conduct two public hearings a year, to discuss the need for and availability of child care before, after, or both before and after the school day and during school holidays and vacations for the district's school —age students. The public is notified of the hearings through advertisements in the Corpus Christi Caller -Times and press release distributed to the media. 12. Control of Facilities and Announcements. District does not give up ultimate control of the facilities and retains the right to enforce all necessary laws, rules, and regulations, as well as the right to make announcements as District may deem necessary in the interest of public safety. City will cooperate and cause its agents and employees to cooperate with delivery of such announcements. 13. Non - Assignment. Neither this Agreement, nor any interest therein, is assignable without the prior written consent of the other party. 14. Entire Agreement. This Agreement contains and incorporates the entire agreement of the parties and supersedes any and all prior or written agreements, arrangements or understandings between the parties with respect to the subject of this agreement. This agreement may be amended or modified only by an agreement in writing signed by both parties. 15. Programmatic Changes. If City and District staff determines that programmatic changes are necessary that add additional responsibilities, the City Manager and the District's Agent must mutually agree to the changes before they are implemented. Programmatic changes that do not add additional responsibilities may be implemented by either party upon prior written notice to the other of the proposed change. 16. Notices. All notices required hereunder shall be sent to the parties at the following addresses: Parks and Recreation Department City of Corpus Christi P.O. Drawer 9277 Corpus Christi, Texas 78469 -9277 Attn: Calallen Independent School District Attn: Superintendent 4205 Wildcat Drive Corpus Christi, Texas 78410 H:\LEG- DIR\Lisa\2008 Parks and Recreation \Calallen ISD Latchkey INTERLOCAL COOPERATION AGREEMENT.doc — 6 2 Page 5 of 6 17. Effective Date. This Agreement is dated and effective on date of last signature, which is 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary `Angel R. Escobar, City Manager Date: Legal form approved on MeV . of , 2008; By: ,�.- ti Lisa Aguilar, As i tant City Attorney For the City Attorney CALALLEN INDEPENDENT SCHOOL DISTRICT By: \ lk Dr. Arturo Almendarez, Superintende Date. U.14.O8 H:\LEG- DIR\Lisa\2008 Parks and Recreation \Calallen ISD Latchkey INTERLOCAL COOPERATION AGREEMENT.doc — 6 3— Page 6 of 6 EXHIBIT A Calallen Independent School District Calalien East 3709 Lott Ave. Corpus Christi, TX 78410 Magee Intermediate 4201 Calalien Corpus Christi, TX 78410 Wood River Primary 15118 Dry Creek Dr. Corpus Christi, TX 78410 H:\LEG- DIR\Lisa\2008 Parks and Recreation \Calallen ISD Latchkey INTERLOCAL COOPERATION AGREEMENT.doc -64- Page 1 of 1 ORDINANCE APPROPRIATING $146,623 IN THE GENERAL FUND NO. 1020 FROM THE ESTIMATED REVENUES FROM LATCHKEY AFTER SCHOOL AND SUMMER REGISTRATIONS; CHANGING THE FY 2008 -2009 OPERATING BUDGET ADOPTED BY ORDINANCE 027776 TO INCREASE ESTIMATED REVENUES AND APPROPRIATIONS BY $146,623 EACH; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $146,623 in estimated revenues from Latchkey after school and summer registrations is appropriated in the General fund No. 1020; and changing the FY 2008 -2009 Operating Budget adopted by Ordinance 027776 to increase estimated revenues and appropriations by $146,623 each. 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 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 December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED as to form: December 1, 2008 `r v41 By: ,.min Lisa Agi il'ar Assistant City Attorney for the City Attorney —65— Henry Garrett Mayor 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon —66— 9 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Motion approving the allocation of $32770.70 from the Hotel Occupancy Tax Fund and $61,633.30 from the General Fund to fund grant contracts with sixteen (16) arts and cultural organizations for a total of twenty -two (22) arts projects. Funding was authorized in the FY 2008 -2009 budget. ISSUE: Funds are annually allocated for Arts and Cultural subgrant awards. The Arts and Cultural Commission makes recommendations for allocation of those funds and refers their recommendation to City Council. The Arts Grant guidelines require City Council approval of all subgrant awards. REQUIRED COUNCIL ACTION: Allocation of the Arts Projects funding and the awarding of the art subgrant allocations to the arts organization must be approved by the City Council. PREVIOUS COUNCIL ACTION: This is an annual request. $94,404.00 from the Hotel Occupancy Tax fund (Arts Grants /Projects) and the General fund (Arts Subgranting) was authorized in the FY 2008 -2009 budget for arts awards for arts /cultural activities and art/cultural projects. Board /Commission Action: The Arts and Cultural Commission approved their final recommendation at their November 21, 2008, meeting. FUNDING: The total recommended allocation of $94,404.00 is to be funded from the FY 2008 -2009 budget authorization for arts in the Hotel Occupancy Tax Fund (1030- 13815- 530000 - 000000) and the General fund (1020- 13825 - 530000 - 000000). CONCLUSION AND RECOMMENDATION: It is recommended that the motion be approved for the allocation of $32,770.70 from the Hotel Occupancy Tax fund (1030- 13815- 530000) and $61,633.30 from the General fund (1020- 13825 - 530000) to fund a total of 14 arts and cultural organizations. Funding has been authorized for the FY 08- 09 budget. Sally k, M Parks a Recreation Department Attachments: Background Information 2009 Subgrant Awards Sheet —69— BACKGROUND INFORMATION Annually, the City Council includes funding in the operating budget for support to various non - profit arts programs in the City. The Arts and Cultural Commission (formerly the Municipal Arts Commission) solicits grant requests from local organizations and then makes its recommendation of funding to the City Council. The recommendation for FY 08 -09 is based on a two -part evaluation of grant applications by the Arts and Cultural Commission members as a whole and the Subgrant Committee, a standing committee of the Arts and Cultural Commission. The recommendations are based on artistic merit, community needs, impact on tourism, the applying organization's ability to match the grant (50% of the total project award), and how well the artistic production will be marketed. A project selection procedure, the Arts Subgrant Guidelines, was developed in 1986, modeled after the Texas Commission on the Arts Peer Panel Review and has been updated regularly ever since. The process uses a worksheet rating system that addresses specific questions on the quality of each grant request. The Subgrant Committee has, over the years, continued to improve the funding application packet. The final recommendation is adjusted mathematically to the amount of funds available. Applicants have the option of applying for up to two projects, for a grant total per organization. of $10,000. This year, 26 project grant requests totaling $153,100.00 were received. The Arts and Cultural Commission is recommending that the 22 project grants requests from 14 arts and cultural organizations be funded. The Arts Subgrant Guidelines define a process that provides an organization with two opportunities to appeal their recommended level of funding —first with the Arts and Cultural Commission and then with the City Council. This year there were 4 appeals. The total allocation recommended by the Arts and Cultural Commission to the arts organizations is $94,404.00 for art subgrants. —70— 2009 Subgrant Awards - Arts and Cultural Commission -71- Applicants Project Requested Allocation Proposed Award Amount General Fund 1020 HOT Fund 1030 Alcorta's Diamente Spring Spectacular $ 5,000 disqualified Alcorta's Diamente Uno Involvidable 5,000 disqualified Art Museum of So Texas Territory 4,000 $ 3,210 $ 3,210 Art Museum of So Texas Glasswear 6,000 4,176 $ 4,176 Ballet Nacional Noche de Gala 6,500 5,174 $ 5,174 Ballet Nacional Salsa Fiesta 3500 2,750 $ 2,750 CC Ballet Cinderella 10,000 6,713 $ 6,713 CC Cathedral Concert Series 10,000 8,413 $ 8,413 CC Concert Ballet Bailando 5,000 3,681 $ 3,681 CC Concert Ballet Spring Gala 5,000 3,538 $ 3,538 CC Chamber Music Society Concert Series 10,000 7,933 $ 7,933 CC Chorale Symphonic Chorale 2009 7,600 4,155 $ 4,155 CC International Competition Piano & Strings Competition 10,000 5,010 $ 5,010 CC Symphony Where Music Lives 10,000 10,000 $ 10,000 Coastal Bend School for the Arts Music Movement Drama 2,500 1,272 $ 1,272 Coastal Bend School for the Arts Youth Orchestra 5,000 2,746 $ 2,746 Coastal Bend Wildlife Photography Exhibit 10,000 Withdrew Harbor Playhouse A Christmas Carol 5,000 3,941 $ 3,941 Harbor Playhouse Seussical 5,000 3,947 $ 3,947 KSpace Art Gallery 3rd Coast 3,550 3,080 $ 3,080 KSpace Art Gallery Graffiti Project 6,450 5,821 $ 5,821 South Texas Botanical Gardens Flamingo Fandango 5,000 2,525 $ 2,525 South Texas Botanical Gardens Permaculture 5,000 2,740 $ 2,740 Sufficient Praise Sufficient Praise 10,000 Ineligible Texas A &M University- Corpus Christi Mobile Foundry 6,000 2,431 $ 2,431 Texas A &M University- Corpus Christi Bravo Series 2,000 1,150 $ 1,150 $ 153,100 $ 94,404 $ 61,633 $ 32,771 -71- 10 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 8, 2008 AGENDA ITEM: Ordinance authorizing the City Manager, or his designee, to execute an extension of the lease with Landry's Seafood and Steakhouse -CC, Inc. until March 31, 2009, to operate a restaurant on People's Street T -Head in consideration of payment of $6,000 per month or 2.75% of monthly gross sales, whichever is greater; and declaring an emergency. ISSUE: Current lease will expire on December 31, 2008. Additional time is needed to complete the new lease agreement. REQUIRED COUNCIL ACTION: Council action is required to authorize extension of the current lease agreement. PREVIOUS COUNCIL ACTION: Council approved current lease on October 23, 2003. CONCLUSION AND RECOMMENDATION: Staff recommends that the Council approve the ordinance. Sally a'v ,Director imi� Parks and ecreation Attachment: Background Information —75— BACKGROUND INFORMATION The current lease with Landry's signed on October 28, 2003, will expire at the end of this month, December 2008. Staff has been working with Landry's representatives for several weeks on a new five year lease agreement. However, we do not believe the work will be completed before the end of this month. Therefore, both staff and Landry's representatives request an extension of the current contract to complete their negotiations for the new multi -year contract. —76— Page 1 of 2 ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE AN EXTENSION OF THE LEASE WITH LANDRY'S SEAFOOD AND STEAKHOUSE - CORPUS CHRISTI, INC. UNTIL MARCH 31, 2009, TO OPERATE A RESTAURANT ON PEOPLE'S STREET T -HEAD IN CONSIDERATION OF PAYMENT OF $6,000 PER MONTH OR 2.75% OF MONTHLY GROSS SALES, WHICHEVER IS GREATER; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the City Manager, or designee, is authorized to execute an extension of the Lease with Landry's Seafood and Steakhouse - Corpus Christi, Inc. until March 31, 2009, to operate a restaurant on People's Street T -Head in consideration of payment of $6,000.00 per month, or 2.75% of monthly gross sales, whichever is greater. The agreement is on file with the office of the City Secretary. 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 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 16th day of December, 2008 ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Approved: Da- 6I 2008. Lisa Aguilar( Assistant City Attorney for the City Attorney Henry Garrett, Mayor H: \LEG- DIR \Lisa\2008 ORDINANCES \ORD- Landry's.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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon H: \LEG- DIR \Lisa\2008 ORDINANCES \ORD- Lanar7oc AGREEMENT TO EXTEND LEASE WITH LANDRY'S SEAFOOD AND STEAK HOUSE - CORPUS CHRISTI, INC. THIS AGREEMENT is made and entered into this 16th day of December, 2008, by the CITY OF CORPUS CHRISTI, a municipal corporation and political subdivision of the State of Texas, hereinafter referred to as "CITY," and LANDRY'S SEAFOOD AND STEAK HOUSE - CORPUS CHRISTI, INC. a corporation organized and existing under the laws of the State of Delaware and authorized to do business in the State of Texas, hereinafter referred to as "Landry's ". Whereas, the parties previously entered into a Lease Agreement between Landry's Seafood and Steak House— Corpus Christi, Inc. and the City of Corpus Christi approved by City Council on October 28, 2003 ( "Lease Agreement "), with termination date of December 27, 2008; Whereas, the parties desire to extend the term of the Lease Agreement until March 31, 2009; NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1) Section 4 of the Lease Agreement, "Term ", is amended to extend the term from the December 28, 2008 thru March 31, 2009 ( "Extension Period "). 2) Section 5 of the Lease Agreement, "Lease Rate and Payments ", is amended to provide that during the Extension Period, the compensation shall be $6,000 per month, or 2.75% of monthly Gross Sales, which ever is greater. The definition of Gross Sales is provided in Section 5 (C) of the Lease Agreement. 3) All other terms and conditions of the Lease Agreement between Landry's Seafood and Steak House — Corpus Christi, Inc and the City of Corpus Christi approved by City Council on October 28, 2003, which are not inconsistent herewith shall continue in full force and effect during this Extension Period. A copy of the current Lease Agreement is attached as Exhibit A. IN WITNESS WHEREOF, the parties hereto have themselves or through their duly authorized officers executed this Extension Agreement effective as of the day and year above first written. EXECUTED IN DUPLICATE ORIGINALS this day of , 2008, by the authorized representative of the parties. ATTEST: City of Corpus Christi, Texas Armando Chapa `Angel R. Escobar City Secretary City Manager APPROVED AS TO LEGAL FORM THIS DAY OF , 2008: Lisa Aguilar Assistant City Attorney For the City Attorney LANDRY'S SEAFOOD AND STEAK HOUSE — CC, INC. By: Name: Title: Date: State of Texas § County of Harris § This instrument was acknowledged before me on the day of December, 2008, by as for Landry's Seafood and Steak House — CC, Inc., a Texas corporation, on before of the corporation. —80— Notary Public —81— 09/17/2003 16:31 FAX R1002/017 Landry's LEASE AGREEMENT BETWEEN LANDRY'S SEAFOOD AND STEAK HOUSE - CORPUS CHRISTI, INC. AND THE CITY OF CORPUS CHRISTI THE STATE OF TEXAS § COUNTY OF NUECES § KNOW ALL MEN BY THESE PRESENTS; This lease ( "Lease') is entered into between the City of Corpus Christi ( "City"), a Texas municipal home -rule corporation, acting through its duty authorized City Manager ( "City Manager'), and Landry's Seafood and Steak House - Corpus Christi, Inc. (*Landry's "), a Texas corporation, whose principal office and place of business is In Houston, Harris County, Texas, acting through its duty authorized representative. The City, in consideration of Landry's faithful performance of the conditions and cove- nants contained In this Lease, leases to Landry's a dockside area in the Corpus Christi Marina ( "Marina"), as follows: Section 1. Preamble Language. The preamble language included above this initial numerated section in incorporated into this Lease by reference and made a part of this Lease for all intents and purposes. Section 2. Premises. Landry's is granted use of sufficient berthing space on the north side of the Peoples Street T -Head, to accommodate a barge restaurant, and related site Improvements, including the additional adjacent space designated "Boardwalk" on the attached Exhibit A (all areas collectively referred to as the "Promises"), which is incor- porated in this Lease by reference. Section 3. Permitted Uses. (A) Landry's must use the Premises primarily as a restaurant, to include outside dining, and secondarily as a bar. Landry's may use the bar, as a secondary use only, to sell and serve alcoholic bev- erages if Landry's has complied, and remains in compliance, with all State and local laws, rules, regulations, and ordinances. Additionally, the bar may be used by Lan - dry's for the sale of souvenirs and other merchandise secondary to and as appro- priate to complement food and drink service. (B) (C) The business operation must be confined to the barge restaurant, Boardwalk, and deck areas within the Premises. T ' --- `- --- exclusive right to operate a restaurant in the Marina area. 2003 -494 10/28/03 Ord025538 EXiBIT A 09/17/2003 16:31 FAX 2 003/017 Section 4. Term. The temr of this Lease is for five years beginning on the 61" day after final City Council approval. Section 5. Lease Rate and Payments. (A) For the first twelve (12) months of this Lease, Landry's must pay the City a base lease rate of $6,000 per month, or 2.75% of monthly "Gross Sales," whichever is greater. (B) For the second through fifth years of this Lease, Landry's must pay the City the adjusted monthly lease rate, as described in this subsection, or 2.75% of monthly "Gross Sales," whichever is greater. (1) For purposes of calculating the base lease rate only for the second through fifth years of this Lease, the monthly base lease rate will be annually adjusted up- ward, based upon the Consumer Price Index, All Urban Consumers, U.S. City Average, All hems, Not Seasonally Adjusted ("CPI -U "), as published by the United States Bureau of Labor Statistics, or such other index as may succeed the CPI -U, as follows: For each change of one percent (1%) annually in the CPI-U index level from the CPI-U index level available immediately prior to the start date of this Lease, the monthly base lease rate will be adjusted upward by a factor of one percent (1%); however, in no event may the annual upward ad- justment between Lease years exceed a 3% increase from the amount of the previous Lease year's monthly lease rental rate. (2) The applicable CPI -U reference base consists of base years 1982, 1983, and 1984. The CPI -U index level Immediately prior to the start date of this Lease was 183.9 (July, 2003), and this level serves as the reference point upon which future adjustments to the monthly base lease rate will be made. An adjustment, if warranted by a change in the CPI -U index level, will take ef- fect thirteen (13) months following the start date of this Lease and will be fur- ther adjusted each twelve (12) months thereafter. (C) "Gross Sales" means all sales of food, drink, souvenir items, and all merchandise of any kind sold on the Premises, excluding sales, consumption, and alcoholic bev- erage taxes. (3) (D) Payments must be made to the order of the City of Corpus Christi and mailed to the City Collections Department, P. O. Box 9277, Corpus Christ, TX, 78469, or de- livered to City Hall at 1201 Leopard Street, Corpus Christi, "TX, 78401. Section 8. Lease Payment Abatement (A) The monthly lease payment may be abated during the time Landry's ceases restaur- ant business operations: Page 2 of 16 —83— 09/17/2003 18:31 FAX (1) ® 004/017 in preparation for movement to a safe moorage In accordance with Landry's Hurricane Preparedness Plan ( "Hurricane Plan"), a copy of which is attached as Exhibit C and incorporated in this Lease by reference; (2) whenever the barge is rendered substantially unusable because of damage re- sulting from fire, water, wind, or force majeure; or (3) in the event major repair, renovation, or construction prohibits access to and through the Peoples Street T -Head. (B) in the event that a condition in subsection (A) of this section occurs and Landry's desires to claim a lease payment abatement, Landry's must notify the the City's Marina Superintendent or the Marina Superintendents designee ("Marina Superin- tendent" in writing within three (3) business days following the occurrence of a con- dition stated in subsection (A) of this section, providing the date, time, and reason for cessation of restaurant business operations and the expected date of resumption of restaurant business operations. (C) Landry's must resume its restaurant business operations as soon as practical after a condition that caused the cessation of restau rant business operations no longer exists. Landry's must provide the Marina Superintendent with written notice within 24 hours after resuming restaurant business operations. (D) The lease payment abatement amount will be a pro rata share of the minimum monthly lease payment due. Section 7. Monthly Financial Statements; Audit of Records. (A) Landry's must keep strict and accurate books of account and records of Gross Sales and of all receipts collected. (B) Landry's must furnish monthly statements of Gross Sales, certified by an authorized officer of Landry's, in accordance with generally accepted accounting principles and procedures and In a form approved by the City's Director of Finance. (C) Landry's books and records must be open for inspection by the City Manager at all reasonable times. (D) AU underlying documentation for Landry's certified monthly statements, including, but not limited to, cash register and computer terminal tapes, must be preserved by Landry's for at least three (3) years. The City Manager may terminate this Lease for failure to preserve such records or provide them to the City upon the City Manager's request (E) The City Manager may audit Landry's books and records at any time to verify Lan - dry's Gross Sales for any period within 3 years prior to an audit. M,L 0-1XlaW,WDw wvNUCa.E1.MAN74/4.bvN.+r, 2R3 -pd —84— Page 3 of 16 09/17/2003 18:32 FAX Z005/017 (1) "Books and records" Includes, but is not limited to, all documents related to the conduct of the business such as: general ledgers, accounts receivables and payables, sales journals, inventory records, daily and periodic summary re- ports, cash register and computer terminal tapes, bank deposit slips, bank statements, tax reports to State and Federal agencies, and discount and rebate records. (2) Any additional payments due the City, as may be determined by an audit, must be paid by Landry's to the City, with annual interest of 15% from the date the payment became due, within 30 days of such determination and notice to Landry's. Audits will be conducted at the administrative offices of the City's Park & Rec- reation Department, 1201 Leopard Street, Corpus Christi, Nueces County, Texas, 78401, and Landry's must make its books and records available at such time as required by the City's Auditor. if first agreed to in writing by the City's Director of Park & Recreation or the Director of Park & Recreation's designee ("Director"), the audit can be conducted at another site, provided Landry's re- imburses the City for the travel, food, and lodging expenses of City staff nec- essary to conduct the audit (3) (4) If the audit shows that Landry's has understated Gross Receipts by 3% or more, the entire expense of the audit must be paid by Landry's. Section 8. Delinquency and Default Regarding Lease Payments. (A) Landry's is `delinquent" if the City has not received Landry's's monthly lease pay- ment and certified financial statement on or before 5:00 p.m. on the 10th day of the month in which the payment and certified financial statement are due. If the 10th day on the month falls on a weekend or holiday, the payment and certified financial statement must be tendered on the first business day thereafter. (B) Landry's is "in default" if Landrys falls to pay the amount due or provide the certified financial statement within ten (10) business days after the City Manager has sent a written notice of delinquency requesting the payment, certified financial statement, or both. A default for failure to pay the amount due or provide the certified financial statement constitutes grounds to terminate this Lease. Section 9. Landry's Responsibilities. Landry's, as lessee, shall: (A) Pay for the installation, maintenance, and use of all of its utilities including, but not limited to, water, sewer, sanitation, electricity, natural gas, 8nd telephone; (B) Comply with all Federal, State, and local laws, rules, regulations, and ordinances, as each may be amended, including, but not limited to, Chapter 12 of the City's Code of Ordinances and the Marina Rules and Regulations, and ensure that its em- ployees, agents, and representatives comply as well; ftL8G.DRfOM,r10gi AalkOX s6CW IUNAVdIA1W,p WM 2005 w$ —85— Pegs 4 of 16 09/17/2003 16.32 FAX 10os /017 (C) Maintain the Premises and all improvements in a good and safe condition during the Lease term; (D) Maintain the barge restaurant, mooring lines, spuds, pilings, and anchors at all times in a satisfactory state of repair, as specified by the Marina Superintendent; (E) Perform grounds maintenance for the area north of the center of the head portion of the Peoples Street T -Head, as shown on the attached Exhibit B, which is incorpo- rated in this Lease by reference, to include, without limitation, litter control of all grass and landscaped areas and the parking lots utilized by its restaurant custo- mers; (F) Raise the barge restaurant if it sinks, regardless of the cause of its sinking; (G) Remove the barge restaurant from the Marina in the event of extensive damage, de- struction, sinking, or partial sinking, regardless of cause, or threat of hurricane, as set out in Exhibit B; (H) Ensure that no pollutant, effluent, liquid or solid waste material, bilgewater, litter, trash, or garbage issued from the Premises is allowed to collect In the waters of the Marina or in the vicinity of the barge restaurant or parking areas utilized by restaur- ant customers. Landry's must regularly inspect and police the vicinity of the Prem- ises for such materials and clean up and remove such materials in order to maintain the cleanliness and attractiveness of the Marina; (I) Ensure that the noise level issuing from the Premises Is reasonable and not discern- ibly audible to a person of normal hearing sensitivity standing along the east curb lines of Shoreline Boulevard (northbound); (.1) Regularly Inspect and maintain fire fighting systems and equipment in the highest degree of readiness and regularly conduct training for employees in fire prevention and emergency procedures; (K) Pay all operating expenses incurred by Landry's in connection with its restaurant business operations; and (L) Pay all ad valorem taxes which may be assessed against the Premises, that are associated with Landry's use of the Premises, prior to their past due date. Section 10. Repairs and Maintenance to Barge. (A) Landry's may not make any major repairs to the barge restaurant while it is located within the Premises, the determination of what constitutes `major repairs" being within the sole and reasonable discretion of the Marina Superintendent. However, the Marina Superintendent may authorize reasonable minor repairs and mainte- nance within the Premises. HALEG k\dS m,p,F 1ARCa VCOMAM %am1.v.sq,L x]WJ..pe —86— Page 5 of 16 09/17/2003 16'32 FAX rm 007 /017 (B) For all repairs, Landry's must provide the Marina Superintendent with a written des- cription of the type of maintenance requested and the estimated time frame to start and complete the maintenance requested, at least one week prior to the requested start date. Section 11. Improvements /Additions/Alterations. (A) Landry's may not make any improvements, additions, or alterations to the Premises, the Marina facilities, the exterior of the barge restaurant, or the Boardwalk without the prior written approval of the Director and the City Manager. Landry's must also obtain clearance, in writing, from the City's Risk Manager as required by Section 26(D) of this Lease. (B) If approved, any improvements, additions, or alterations made by Landry's to the Premises must comply with all applicable City Codes. (C) Landry's acknowledges and agrees that all improvements, additions, and alterations that may be made to the Premises, including the Boardwalk area, during the term of this Lease become the property of the City upon the earlier termination or expiration of this Lease. Section 12. Restaurant Operations. Landry's shall carry out the restaurant operations in a businesslike manner at all times. The hours and days of operation during the term of this Lease must be comparable to those of other restaurants In the City that place emphasis upon lunch and evening meals. Section 13. Hurricane Preparedness. If the City or the surrounding area is threatened by a hurricane or other emergency weather situation, Landry's shall comply with all or- ders of the Marine Superintendent pursuant to the Hurricane Preparedness Plan, as set out in Exhibit C. Section 14. Sanitation. Landry's shall store garbage and trash aboard the barge res- taurant or upon the Peoples Street T -Head at a location designated by the Marina Su- perintendent. All garbage and trash stored in designated areas upon the T -Head must be stored in dumpster -type containers. Such containers must be housed inside a small building, screened or appropriately landscaped, and all at Landry's expense and as ap- proved by the Marina Superintendent. The garbage container area must be maintained by Landry's. Landry's shall obtain garbage pickup no less than five (5) days per week. Landry's may not store anything outside either the dumpster itself or the dumpster housing. Section 15. Parking. Landry's restaurant customers may park on the stem and head portion of the Peoples Street T -Head, provided, however, that such parking areas may not be utilized by Landry's for the exclusive use of Landry's and Its employees and cus- tomers. I[VEICHHVI b P,R SSW MA 1. 1.130 WNAY.MM/N.NT Irt 5061.-y1 _g7_ Page 6 of 16 09/17/2003 16:33 FAX fm 006 /017 Section 16. Sanitary Sewer. (A) Landry's shall operate its sanitary sewer facilities in accordance with the City Code of Ordinances, Section 13 -201, as amended, and City Code of Ordinances, Chapter 55, Article XI, Commercial and Industrial Waste Disposal and Pretreatment, as amended. (8) The City warrants sewer service from the lift station only so long as electrical service to the station is not disrupted by storm, accident or other hazards, or catastrophe. Standby power to operate the lift station Is not available at the beginning of this Lease nor Is it planned by the City. Section 17. Inspection. My officer or authorized employee of the City may enter upon the Premises, including the barge restaurant, at all reasonable times and without notice, to determine whether Landry's is providing maintenance required by this Lease, to in- spect the restaurant operations, to enforce this Lease, for purposes of any fire or police action, or for any other purpose incidental to the City's retained rights of and in the Premises. Section 18. Signs and Lighting. (A) Landry's may not exhibit, inscribe, paint, erect, or affix any signs, advertisements, notices, or other lettering ("Signs') at, on, or about the Premises, or any part there- of, without the prior written approval of the City Manager. (B) The City may require Landry's to replace, repaint, or repair any Signs allowed. If Landry's does not remove, repaint, or repair the Signs within 15 business days of the Director's written demand, the City may do or cause the work to be done, and Landry's shall pay the City's costs within 30 days of receipt of Director's invoice. Failure to pay the amount due within 30 days from receipt of an invoice constitutes grounds to terminate this Lease. (C) Landry's may not erect or affix any new or modified lighting fixtures ( "Lighting') at, on, or about the Premises, or any part thereof, without the prior written approval of the City Manager, (D) If approved, the new or altered Signs and Lighting must comply with the City's Code of Ordinances and the City's zoning ordinance, as each may be amended. Section 19. Assignment or Sublease, (A) Landry's may not, without the prior written consent of the City's City Council ('City Council'), such consent not to be unreasonably withheld, assign this Lease or sub- lease any portion of the Premises. Any attempted assignment or sublease, without the prior written consent of the City Council may, in the City Managers sole discre- tion, render this Lease null and void. M'VEGOUNIabsl'Ls nevwc & kICwnwNM.a laset, =and —88— Page7of 16 09/17/2003 16:33 FAX ib 009/017 (B) In the event of the City Council's consent to an assignment or sublease of this Lease, each provision, term, covenant, obligation, and condition required to be per- formed by Landry's must be binding upon any assignee or sublessee and is partial consideration for the City Council's consent to the assignment or sublease. Any failure of the assignee or sublessee to strictly comply with each provision, term, covenant, obligation, and condition stated in this Lease may, In the City's Managers sole discretion, render this Lease null and void. Section 20. Non - discrimination. Landry's covenants and agrees that it shall not dis- criminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Premises, on the grounds of race, religion, national origin, gender, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. The City hereby reserves the right to take such action as the United States may direct to enforce this covenant. Violation by Landry's of this covenant constitutes grounds for the City to immediately terminate this Lease. Section 21. Relationship of Parties, This Leese establishes a landlordltenant rela- tionship, and none other, and this Lease must be construed conclusively in favor of that relationship. In performing this Lease, both the City and Landry's will act in an individual capacity and not as agents, representatives, employees, employers, partners, joint ven- turers, 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 whatsoever. Landry's shell employ sufficient employees to operate the restaurant busi- ness and such employees must be solely in the employ of Landry's. Section 22. Termination and Damages Prior To Expiration. If Landry's terminates this Lease prior to expiration, Landry's must pay the City, within 30 days of termination, liquidated damages in the amount of $34,500 to offset income the City will lose due to Landry's early termination of this Lease. The liquidated damages paid by Landry's will provide revenue to the City while the City attempts to find a new restaurant operator or other revenue source. Section 23. Termination upon Default. The City may terminate this Lease if Landry's fags to comply with any provision, term, covenant, obligation, or condition of this Lease and fails or refuses to cure the default within a reasonable time after receiving written notice of the default. Notwithstanding the immediately preceding language, default of Section 20 of this Lease will subject this Lease to immediate termination. Section 24. Removal of Barge. (A) In the event of termination or expiration of this Lease, Landry's must remove the barge restaurant from the Marina, at Landry's cost and without damage to City prop- erty. If Landry's fails to remove the barge restaurant within 30 days after termination or expiration of this Lease, the City may remove the barge restaurant and repair any City property damaged by the removal, and the City will invoice Landry's for such x:VaGaeasHn,i MSS a *.vwwnLa,.ry,u.w,, w. mo1..e, —89— Page 8 of 18 09/17/2003 16:34 FAX 2 010/017 removal and repair costs, which Landry's covenants to pay within 30 days of receipt of the invoice. (B) If the City removes the barge restaurant from the Marina after Landry's failure to timely do so, City may dock or store the barge restaurant at any location chosen by the City Manager, and Landry's must pay for all costs and expenses of such transit, docking, or storage. The City has no duty to protect, maintain, or care for the barge restaurant during transit, docking, or storage and cannot be held liable by Landry's for damage to the barge that may arise out of or in any way be connected with the transit, docking, or storage of the barge. Section 25. Indemnification. (A) To the extent allowed by Texas law and in consideration of al- lowing Landry's to lease the Premises, Landry's ( "Indemnitor ") covenants to fully indemnify, save, and hold harmless the City, its officers, agents, representatives, and employees (collectively, "Indemniteee ") from and against any and all claims, demands, actions, damages, losses, costs, liabilities, expenses, end Judg- ments asserted against or recovered from the City on account of injury or damage to persons or property (Including, without limi- tation on the foregoing, premises defects, workers' compensa- tion, end death claims), to the extent any injury, damage, or loss may be incident to, arise out of, be caused by, or be in any way connected with, either proximately or remotely, wholly or in part: (1) Landrys' performance pursuant to this Lease; (2) Landrys' use of the Premises and any and all activities associated with the Premises pursuant to this Lease; (3) the violation by Landry's, its officers, employees, agents, or representatives or by Indemni- tees of any law, rule, regulation, ordinance, or government order of any kind pertaining directly or indirectly to this Leese; (4) the exercise of rights under this Lease; or (5) an act, omission, or criminal violation on the part of Landry's, Its officers, employees, agents, representatives, contractors, patrons, guests, licensees, or Invitees entering upon the Premises or Boardwalk area with or without the express or Implied invitation of Landry's, or of In- demnitees, pertaining to this Lease, regardless of whether the injury, damage, loss, violation, exercise of rights, act, omission, or criminal violation is caused or is claimed to be caused by the sole, contributing, or concurrent negligence of Indemnitees, but not if such damage or injury results from the gross negligence or willful misconduct of the Indemnitees. nRwoallrrntnw w •aL1MMnA •• •• it m•••• -90- Page9of 16 09/17/2003 16:34 FAX 1 011/017 (B) Landry's covenants and agrees that, if the City is made a party to any litigation against Landry's or in any litigation commenced by any party, other than Landry's relating to this Lease, Landry's shall, upon receipt of reasonable notice regarding commence- ment of litigation and at its own expense, investigate all claims and demands, attend to their settlement or other disposition, defend the City in all actions based thereon with legal counsel satisfactory to the City Attorney, and pay all charges of attorneys and all other costs and expenses of any kind whatsoever arising from any said claims, demands, actions, damages, losses, costs, liabilities, expenses, or judgments. (C) The provisions of this section survive the earlier termination or expiration of this Lease. Section 26. Insurance. (A) Landry's must provide insurance in the amounts and types of coverages required by the City's Risk Manager or the Risk Manager's designee ( "Risk Manager") as delin- eated in Exhibit D, which is attached to this Lease and incorporated in this Lease by reference. Landry's must provide the City's Director of Park and Recreation and the Risk Manager with a Certificate of Insurance, stating the levels and types of cover- ages, at least 30 days prior to the annual anniversary date of the effective date of this Lease. (B) The language on the Certificate of Insurance must provide that the City's Director of Park and Recreation and the Risk Manager receive at least 30 days advance written notice, by certified mall, of any cancellation, non - renewal, or material change in the insurance policy required in Exhibit D. (C) The Risk Manager retains the right to annually review the limits and types of insur- ance required by this Lease, to require increased coverage limits and types, if ne- cessary in the interest of public health, safety, or welfare, or to adequately insure the Premises, and to decrease coverage, if so warranted. In the event of any neces- sary increase, Landry's will receive at least 30 days written notice of the revised re- insurance requirements. Landry's shall procure the revised insurance limits and types within 30 days of receipt of written notice of the revised insurance require- ments and provide written proof of insurance to the City's Director of Park and Rec- reation and the Risk Manager. (D) Landry's shall, prior to the construction of any Improvement, addition, or alteration to, in, on, or about the Premises, obtain prior clearance, in writing, from the Risk Manager that the proposed improvement, addition, or alteration will not necessitate a change or modification in the existing insurance coverage maintained by Landry's. This clearance is in addition to the prior consent required by Section 11(A) of this HiLSG.Wll'S W'L,p%WYN[ & IECIIANNAVrf),LS.y, ire 7203.w$ Page 10 of 16 09/17/2003 16:34 FAX raj 012/017 Lease. In the event that the Risk Manager determines that the improvement, addi- tion, or alteration necessitates increased insurance coverage, Landry's shall procure such increased insurance coverage within the time specified by the Risk Manager. Section 27. Taxes. (A) Landry's shall pay all taxes, license and permit fees, and other fees required to op- erate the Premises. Landry's shall also pay all taxes that Landryrs use of the Prem- ises causes to be assessed against the Premises, and any Fixed Asset and Per- sonal Property taxes appurtenant to the Premises. Landry's shall pay all taxes prior to the due date. (B) Further, Landry's covenants to pay payroll taxes, Medicare taxes, RCA taxes, un- employment taxes, and all other related taxes according to the United States Inter- nal Revenue Service's Circular E, entitled °Employer Tax Guide °, Publication 15, as it may be amended, prior to their respective due dates. Landry's shall provide proof of payment of these taxes within 30 days after payment is due or the Marina Super- intendent requests proof of payment. Failure to pay or provide proof of payment is grounds to terminate this Lease. Section 28. Notice. (A) All notices, demands, requests, or replies provided for or permitted by this Lease must be in writing and may be delivered by any one of the following methods: (1) by personal delivery; (2) by deposit with the United States Postal Service as certified mail, return receipt requested, postage prepaid, to the addresses stated below; (3) by prepaid telegram; (4) by deposit with an overnight express delivery service; or (5) by fax transmission. (B) Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or overnight express delivery service will be deemed effective one (1) business day after transmission to the telegraph com- pany or overnight express carrier. Notice by fax transmission will be deemed effec- tive upon transmission with proof of delivery. (C) All such communications must be made only to the following: IF TO THE CITC: City of Corpus Christi Attn: Director of Park & Recreation P.O. Box 9277 Corpus Christi, TX 78469 -9277 (381) 880 -3460 Office (361) 8803884 Fax gy66aASimalAW /, FYMIMR • UFCwMmnvsr,NLS,P tam aw.•M -92- IF TO LANDRY'S: Landry's Restaurants, Inc. Attn: Steven L. Scheinthal 1510 West Loop South Houston, TX 77027 (713) 386 -7365 Office (713) 386-7654 Fax Page 11 of 16 09/17/2003 16:35 FAX 013/017 (D) Either party may change the address to which notice is sent by using a method set out above. Lessee shall notify the City of an address change or fax number change within ten (10) days after the address or number is changed. Section 29. No debts. Lessee shall not incur any debts or obligations on the credit of the City during the term of this Lease and including during any Holdover Period that may occur. Section 30. Modifications. This Lease may be modified by the parties if the parties enter into a separate development agreement for the City's Marina area during the term of this Lease. No other changes or modifications to this Lease may be made nor any provision waived unless made in writing and signed by persons duly authorized to sign agreements on behalf of each party. Section 31. Interpretation; Venue. This Lease is to be interpreted according to the Texas laws which govern the interpretation of contracts. Venue lies in Nueces County, Texas, where this Lease was entered into and will be performed. Section 32. Captions. The headings contained in this Lease are for convenience and reference only and are not intended to define or limit the scope of any provision. Section 33. Publication. Landry's agrees to pay the cost of newspaper publication of this Lease and related ordinance, as required by the City Charter, in the legal section of the local newspaper. Section 34. Waiver. (A) The failure of either party to complain of any act or omission on the part of the other party, no matter how long the same may continue, will not be deemed a waiver by said party of any of its rights under this Lease. The waiver of any covenant or con- dition or of the breach of any covenant or condition of this Lease by either party at any time, express or implied, may not be taken to constitute a waiver of any subse- quent breach of the covenant or condition nor justify or authorize the nonobser- vance on any other occasion of the same or any other covenant or condition of this Lease. If any action by Landry's requires the consent or approval of the City on one occasion, any consent or approval given on said occasion shall not be deemed a consent or approval of the same or any other action at any other occasion. (B) Any waiver or indulgence of Landry's default of any provision of this Lease shall not be considered an estoppel against the City. It Is expressly understood that, if at any time Landry's is in default in any of its conditions or covenants of this Lease, the fail- ure on the part of the City to promptly avail itself of said rights and remedies which the City may have shall not be considered a waiver on the part of the City, but the City may at any time avail Itself of said rights or remedies or elect to terminate this Lease on account of said default. Any waiver by the parties of a breach of any cov- enants, terms, obligations, or events of default shall not be construed to be a waiver of any subsequent breach nor shall the failure to require full compliance with this N:YY0.DI11.11ksY apt Monti( MCWAXN.u.ryid-Wm i.,. 2X)..pe —93— Page 12 of 16 09/17/2003 16:35 FAX ®014/017 Lease be construed as changing the terms of this Lease or estopping the parties from enforcing the terms of this Lease. Section 36. Force Majeure. No party to this Lease Is liable for delays or failures in per- formance due to any cause beyond their control including, without limitation, any delays or failures in performance caused by strikes, lock outs, fires, acts of God or the public enemy, common carrier, severe inclement weather, or riots or interference by civil or mil- itary authorities. Such delays or failures to perform extend the period of performance until these exigencies have been removed. Landry's shall inform the City in writing of proof of such force majeure within three (3) business days or otherwise waive this right as a defense. Section 36. Surrender. Landry's acknowledges and understands that the City's agree- ment to lease the Premises to Landry's is expressly conditioned on the understanding that the Premises, including, but not limited to, the Boardwalk area, must be surrendered upon the expiration, termination, or cancellation of this Lease in as good a condition as received, reasonable use and wear, acts of God, fire and flood damage or destruction where Landry's is without fault, excepted. Section 37. Enforcement Costs. In the event any legal action or proceeding is under- taken by the City to repossess the Premises, collect the rent payment(s) due pursuant to this Lease, collect for any damages to the Premises, or to, in any other way, enforce the provisions of this Lease, Landry's agrees to pay all court costs and expenses and such sum as a court of competent Jurisdiction may adjudge reasonable as attorneys' fees in said action or proceeding or, in the event of an appeal, as allowed by an appellate court, if a judgment is rendered in favor of the City. Section 38. Survival of Terms. Termination or expiration of this Lease for any reason does not release either party from any liabilities or obligations set forth in this Lease that (1) the parties have expressly agreed survive any such termination or expiration, inclu- ding, but not limited to, Section 25; (b) remain to be performed; or (c) by their nature would be Intended to be applicable following any such termination or expiration. Section 30. Acknowledgment and Construction of Ambiguities. The parties ex- pressly acknowledge that they have each independently read and understood this Lease. By Landry's execution of this Lease, Landry's agrees to be bound by the terms, covenants, and conditions contained in this Lean. Furthermore, Landry's acknow- ledges and understands that this Lease is not binding on the City until properly autho- rized by the City's City Council and executed by the City Manager. By agreement of the parties, any ambiguities in this Lease are not to be construed against the drafter. Section 40. Severability. (A) If, for any reason, any word, phrase, paragraph, provision, or section of this Lease or the application of such language to any person or circumstance Is, to any extent, held illegal, invalid, or unenforceable under present or future law effective during the term of this Lease or by a final judgment of a court of competent jurisdiction, N;U.*GDatks q..?tfAfl &MDLMMMAW YyinN)slt1YlOd1. -pd —94— Page 13 of 16 09/17/2003 16:36 FAX (B) U1015/017 then the remainder of this Lease, or the application of said language to persons or circumstances other than those as to which it is held illegal, invalid, or unenforce- able, will not be affected hereby, for it is the definite intent of the parties to this Lease that every word, phrase, paragraph, provision, or section of this Lease be given full force and effect for its purpose. To the extent that any word, phrase, paragraph, provision, or section of this Lease is held Illegal, invalid, or unenforceable under present or future law effective during the term of this Lease or by a final judgment of a court of competent jurisdiction and in lieu of each such illegal, invalid, or unenforceable language, a word, phrase, paragraph, provision, or section, as similar in terms to such illegal, Invalid, or unen- forceable language as may be possible and be legal, valid, and enforceable, will be added to this Lease automatically. Section 41. Entire Agreement. This Lease document and the incorporated and at- tached exhibits constitute the entire agreement between the City and Landry's for the purpose granted. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter hereof, unless contained In this Lease, are expressly revoked, as it is the Intention of the parties to provide for a com- plete understanding within the provisions of this Lease and Its exhibits of the terms, con- ditions, promises, and covenants relating to Landry's operations and the Premises to be used in the operations. e:uae.unaiuem,.Rvr OX iniARMAUSsiltaldrn Lammm..w —95— Page 14 of 16 09/17/2003 16:36 FAX 11016/017 EXECUTED D I �K,ATE, each of which shall be considered an original, on this the "` day of �U , 2003. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI AP • OVED AS TO LEGAL ORM: 0 fb 03 2003. i� ..,s ■ for the City Attorney 0412-_55-3? IT COUNCIL Eiza• R. Hundley AUTXgklLtr Ass '> CityAttomey i- .1,t6,> STATE OF TEXAS COUNTY OF NUECE. SECRETA l IV S S 3 This instrument was acknowledged before me on the day of D 2003, by George K. Noe, City Manager of the City of Corpus Christi, a Texas home-rule municipal corporation, on behalf of the corporation. M LWANMe J+M41 VrMrlMKa AMcMOMMUMOUStrystae AFJ..pd Notary Pubic. State of Texas —96— Carrie Parks A. _• , My Commission Expires November 09. 2007 Page 15 of 15 09/17/2003 16:36 FAX LANDRY'S SEAFOOD AND STEAKHOUSE - CORPUS CHRISTI, INC. By: 'tl Steven L. Scheinthal, Vice President Date: STATE OF TEXAS COUNTY OF HARRIS i s s a 017/017 This instrument was acknowledged before me on the I � day of 2008, by Steven L Scheinthal, Vice President of Landry's Seafood and Steakhouse- Corpus Christi, Inc.. a Texas corporation, on behalf of the corporation. KIM TRAN Notary Panels, State of Taxes My Commission Expires Match 07,1007 HN3G.DIa'. b nWwI Flo I, RECWARINMlaMfaHM,n W. feel.• ttlfYlil Notary Public, State of Taxes K i rk "n Printed Name Commission expires: —97— Page 16 of 16 Legal' P-19 -2202 16:09 FROM: TO:917139615027 P.012'024 -98- I REP-19-2002 16:09 FROM: f Exhibit P TO:917139615027 P.013'024 • 0 AREA OF GROUNDS MAINTENANCE RESPONSIBILITY -99- SEP -19 -2002 16:09 FROM: TO: 917139615027 P.014/024 EXHIBIT C Alert and Operational Conditions Civil Defense City of Corpus Christi The following system for indicating the various phases of hurricane warnings will be used: Condition 5 - An alert condition set annually on. June 1, which remains in effect through November 30. This condition indicates that the hurricane season exists. Condition 4 - The path of a storm or hurricane has been fairly well established to indicate destructive wind of force within 72 hours. Condition 3 • Movement of a storm or hurricane indicates destructive winds of force within 24 hots T:kc. preliminary precautionary measures. Condition 2 - Movemenr of storm or hurricane indicates destructive winds of force within 18 hours. rent of a state of readiness on short notice. Common 1 - MnV ! e t r't stnrrrt or hurricane indicates destructive winds of force imminent. E.sta :.s::c a stair of readiness and take precaution to minimize damage. Hurricane Preparedness Nap of Barge Restaurant (1) when Civil Defense alert and operational condition four (4) is announced, contact with restaurant- retained tug operator will be made. Initial preparations regarding food spoilage and securing loose objects will he made. (2) when Civil Defense alert and operational condition three (3) is announced, the barge will be disconnected and tugged to the inner harbor area to a predesignated location. (Several sites have already been identified and initial contact with owners made.) (3) At condition two (2), it is anticipated that the barge will already be moved or is in the process of being moved. Amrwan.r —1 0 0— 10 11/15/2002 16:19 CITY CRPS CRSTI / RISK M6MNT 4 917133867654 N9.814 0202 EXHIBIT C LANDRY'S SEAFOOD AND STEAKHOUSE - CORPUS CHRISTI, INC. 2002 HURRICANE/EMERGENCY ACTION PLAN This Hurricane/Emergency Action Plan (hereinafter, the "Plan') for the food and beverage facility, known as LANDRY'S SEAFOOD AND STEAKHOUSE - CORPUS CHRISTI, INC. (hereinafter, "Landry's ") including the property, facilities, and improvements, has been de- veloped with the coordination and approval of the Emergency Management Office, the Marina Division of the Park & Recreation Department, and the Police Department of the City of Corpus Christi. It is current for the 2002 hurricane season and thereafter until replaced, rescinded, or amended. This Plan will be reviewed by the Marina Superintendent and Landry's General Manager on an annual basis, prior to June l* of each calendar year, and any updates, corrections, or revisions will be forwarded to the Marina Superintendent's office by that date. LANDRY'S SEAFOOD AND STEAKHOUSE - CORPUS CHRISTI, INC. Office Telephone #: (361) 882 -6666 General Manager: R. W. Newcomer, Jr., 705 Saint Bernadine, CC, TX 78416 Home: (361) 937 -4363; Pager: (361) 886 -7031; Mobile: (361) 813 -5607 Manager (1): Robert Newcomer, III, 4306 Wondering Creek, CC, TX 78410 Home: (361) 242 -0504; Mobile: (361) 549 -9926 Manager (2): Mildred Trujillo, 4633 Christine, CC, TX 78415 Home: (361) 851 -2071 Manager (3): Jay Kahn, 1510 West Loop South, Houston, TX 77027 Home: (979) 241 -8326; Pager: (888) 858 -7243 #106227; Mobile: (214) 417 -4371 Office: (214) 698 -1010 Manager (4): Scott Musser, 1510 West Loop South, Houston, TX 77027 Home: (281) 351 -6901; Pager: (888) 858 -7243 #124649; Mobile: (713) 410 -7383 Office: (713) 386 -7268 CORPUS CHRISTI MARINA KEY_PERSONNEL OFFICE: (361) 882- 7333 (24 hours) Peter Davidson, Marina Superintendent Mobile: (361) 537 -2463 Pager: (361) 886 -0308; Radio #891 Rene Garza, Marina Supervisor Mobile: (361) 815 -5920 Pager: (361) 2244988; Home: (361) 855 -3835; Radio #897 -101- 11/15/2002 16:19 CITY CRFS CR5T1 / RISK MGMNT 4 917133667654 NO.814 P003 GOVERNMENT OFFICES Police Department 886 -2600 Fire Department 880.3900 Emergency Operating Center 880 -3714 Emergency Management Office 880 -3700 National Weather Service Recorded Forecast 289-1861 Office 289-0959 Park & Recreation Office 880.3461 GENEEAL-PROVISIONS 1. The order to implement the Plan may be issued by the Mayor, City Manager, Emergency Management Coordinator, Director of Park and Recreation, or the Marina Superintendent. 2. It shall be the sole responsibility of Landry's owners/operators to remove from the Premises all equipment, inventory, furniture, materials, supplies, all portable units/buildings, and to secure the facilities. 3. It shall be the sole responsibility of Landry's to ensure no pollutants enter the waters of the Marina from any operation owned/operated by Landry's, such as grease traps, fueling operations, garbage, materials, etc. 4. All owners/ operators, managers, and employees will be required to evacuate the Marina Complex when conditions threaten human safety as determined by the Police Chief or Marina Superintendent. The Marina staff will secure the Marina Complex and ensure all persons are notified of the danger. 5. The Marina Office has issued Emergency Passes to key Landry's employees. Access to the Marina Complex will be restricted to persons presenting evidence of tenancy issued by the Corpus Christi Municipal Marina (i.e., a copy of the lease document or a Marina Emergency Pass). g'icREASED READINESS ACTIONS FOR VARIOUS CONDITIONS This Plan is framed around four "conditions" which represent varying degrees of threatened emergencies and is based on the action to be taken as these conditions are known to develop through information received from the National Weather Service or any other sources. These conditions are as follows: CONDITION NUMBER 4 (GREEN) - Beginning of Disaster Vulnerability Season - This condition will be used by emergency services personnel to refer to a situation which causes a higher degree of disaster possibility than is normally present. This condition will automatically go into effect upon such occurrences as the beginning of the Hurricane Season (June 1st each year, remaining in effect through November 30th each year) or other general conditions, such as a fire threat due to severe drought. —102— 11/15/2002 16:19 CITY CRPS CRSTI / RISK MGMNT i 917133867654 NO.814 0004 Landry's Seafood & Steakhouse - Corpus Christi, Inc. -3- November 2002 CITY ACTION: The City will initiate general increased readiness activities, submit all updated Plans, and utilize the media and other sauces to recommend various protective actions to the public. LANDRY'S ACTION: Landry's General Manager will review the Plan and provide updated information for the Plan to the Marina Superintendent no later than June l a of each calendar year. Landry's will prepare a contingency plan for. (I) disconnecting power and/or utility services from all portable building(s); (2) removing all portable building(s) from the premises; (3) having grease traps vacuumed; (4) removing objects from outside the restaurant and (5) otherwise securing the Premises. CONDITION NUMBER (YELLOW) 3 - Situations Exist that Could Develop Into Hazardous Condition - This condition will be declared by the City Manager or Emergency Management Coordinator to identify a situation which presents a greater potential threat than "CONDITION 4" but no immediate threat to life or property. This condition might be generated by such events as a hurricane watch, tornado watch, severe thunderstorm watch, or presence of hazardous material in transit through the City by rail, truck, or other means. One such situation when Condition 3 will be declared is when the course of a hurricane has been established and the National Weather Service predicts a likely landfall within thirty -six hours and/or within one hundred miles of the City of Corpus Christi. CITY ACTION: The Marina Superintendent, or his designee, will: advise Landry's of any changes in Condition as advisories or declarations are received. • advise Landry's IF and WHEN information is received on utility shut offs. CP&L secures their service when They determine it is in jeopardy, without notice to the Marina The Marina may shut off power if high waters make conditions dangerous. - initiate/continue removal of watercraft from the Marina Complex until it is determined the operation is unsafe due to weather /road/equipment conditions. Marina rescue boats will be hauled out prior to cessation of haul -out operations. relocate essential City records, tools, equipment and supplies to a safe location. ensure all loose items in Marina are secured. LANDRY'S ACTION: cease all normal operations of the restaurant(s) and/or gift shop and begin securing the Premises and facilities. consult with the Marina Superintendent relative to operations; make arrangements for removal of any and all above ground tanks, oil drums, or related equipment. —103— 11/15/2002 16:19 CITY CRPS CRSTI / RISK NGMNT 4 517133867654 N0.814 0005 Landry's Seafood & Steakhouse Corpus Christi, Inc. -4- November 2002 make arrangements for the removal of all refrigerated foods from the Premises. make arrangements to have all grease traps vacuumed. make arrangements for removal of any equipment, dumpsters, building materials, vending machines, potted plants, street furniture, and other objects on the Premises that are owned by or leased by Landry's or that have been placed on the Premises by Landry's. make arrangements for all furnishings, except for fixtures, to be moved above the first flnnr of the restaurant(s) or out of the Marina. CONDITION NUMBER (ORANGE) 2 - Situations Exist That Have Definite Characteristics of Developing Into A Hazardous Condition - This condition will be declared by the City Manager or Emergency Management Coordinator to identify a hazardous situation which has a significant potential and probability of causing loss of life and/or damage to property. CONDITION 2 will usually require some degree of warning the public of a potential disaster. This condition might be generated by such events as a hurricane warning, tornado warning, severe thunderstorm warning, or any other notification of the existence of a direct threat, such as a toxic material spill, major fire, growing civil disturbance, etc. One such situation when this condition will be declared is when the National Weather Service indicates the possibility of a hurricane landfall within twenty -four hours close enough to cause damaging winds or rising tides in the City of Corpus Christi. CITY ACTION: complete any remaining hurricane preparations and begin evacuating all persons from the Marina Complex. L.ANDRY'S ACTION: complete any remaining hurricane preparations. evacuate all employees from the Marina. CONDITION NUMBER )< (RED) - Hazardous Conditions Are Imminent - This condition will be used to signify occurrence of a major emergency IS imminent Events such as a hurricane smite, landfall predicted in 12 hours or less tornado strike, large explosion, widespread civil disturbance, damaging tides, or other similar events will constitute a "Condition One" declaration. CITY ACTION: ensure that all hurricane preparations throughout the Marina Complex have been completed and all persons have evacuated the Marina Complex_ —104— 1i'1`: -2002 16 19 :171 CRPS L ,Ii . RISk NGNNT 4 917133867654 NO.814 G1006 Landry's Seafood & Steakhouse - Corpus Christi, Inc. -5- November 2002 LANDRY'S ACTION: Landry's will have completed all preparations prior to this Condition and are required to evacuate all Landry's employees from the Marina Complex. HURRICANE PASSED: Marna staff will report to duty, as directed by the City's Bad Weather Policy, for damage :n1 and'n- facility clean -up and ; launching operations, security, etc. Access will be restricted to ' _is presenting evidence of tenancy issued by the • 7* i •` :rina Emergency Pass). L... •.FOOD.. vu ;u%E - CORPUS CHRISTI, INC.: At The Lawrence Street T -Head By: Date: City of Corpus Christi, Park & Recreation Department By: Date: City of Corpus Christi, Police Department By: Date: City of Corpus Christi, Emergency Management Office By: Date: —105— 3171 15027 F.0201021 EXHIBIT D INSURANCE RWVJREMEINTS r >~SSE 'S t IABILITYINSURANCE A. The Lessee's must not commence work under this agreement until he/she has obtained all insurance required herein and sireh insurance has been approved by the City. Nor may the Lessee allow any subcontractor to commence work until all similar insurance required of the subcontractor has been so obtained. B The Lessee must f unish to the City's Risk Manager 2 copies of Certificates of Insurance, with the City named as an additional insured for all liability policies, and a blanket waiver of subrogation on all applicable policies, showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager. In the event of accidents of any kind, the Lessee must furnish the Risk Manager with copies of all reports of such accidents at the same time that the reports are forwarded to any other interested third parties. Landry's Lease Ins. Req. 2-11-97 op Risk Apt —106— TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-Day Notice of Camcefiation required on an certificates Bodily Injury and Property Damage Commercial General Liability including: I Commercial Form 2. Premises - Operations 3. Products/ Completed Operations Hazard 4. Contractual insurance 5 Broad Foram Property Damage 6 Independent Contractors 7 Personal Injury 52,000,000 COMBINED SINGLE LIMIT Host Liquor Liability Coverage 51,000,000 COMBINED SINGLE LIMIT AUTOMOBILE LIABILITY —OWNED NON -OWNED OR RENTED 51,000.000 COMBINED SINGLE LIMIT WORKERS' COMPENSATION EMPLOYERS' I.IAAILITY WiinCH COMPLIES WITH THE TEXAS WORICERS' COMPENSATION ACT AND PARAGRAPH II OF THIS a 4 It: IT 5100,000 In the event of accidents of any kind, the Lessee must furnish the Risk Manager with copies of all reports of such accidents at the same time that the reports are forwarded to any other interested third parties. Landry's Lease Ins. Req. 2-11-97 op Risk Apt —106— TO: 31717 15027 JP :s'e'al- P.0211024 The Lessee must obtain workers' compensation coverage through a licensed insurance Company or through self - insurance obtained in accordance with be written on a policy such and coverage is ed through roves a licensed company, the contract for coverage by the Texas Department of Insurance. If such coverage is provided through self - insurance, then within 10 calendar days after the date the Contract Administrator or his designee requests that the Lessee sign the contract documents, the Lessee must provide the Risk Manager with a copy of its certificate of authority to self- insure its workers' compensation coverage, as well as a letter signed by the Lessee, stating that the certificate of authority to self - insure remains in effect and is not subject to any revocation proceeding then pending before the Texas Workers' Compensation Conunission. Further, if at any time before final acceptance of the Work by the City, such certificate of authority to self -insure is revoked or is made the subject of any proceeding which could result in revocation c�certificate, the requested immediately provide written notice t of such faRscr Recreation Department, P.O. Box 9277, Corpus Christi, directed to City of Corpus Christi, Parks & Recreeti TX 78469 -9277 - Attention: Contractor Administrator. Whether workers' compensation coverage is provided through a licensed insurance company or through self - insurance, the coverage provided must be in an amount sufficient to assure that all workers' compensation obligations incurred by the Lessee will be promptly B Certificate of Insurance: * The City of Corpus Christi must be named as an additional insured on the liability coverage, except for the Workers' Compensation coverage and blanket waiver of subrogation on all applicable policies. clause * If your insurance company uses the standard ACORD for �h bcancela io" and ca (bottom right) must be amended by adding the wording"changed and deleting the words, "endeavor to", and deleting the wording after "left ". The name of the project must be listed under "Description of Operations" At a minimum, a 30-day written notice of change or cancellation is required. C. I{ the Certificate reuire by items B )n aface o�ed represwentapve of the insurance company itel.B (l)-(8), P g are included or excluded must include ude a letter t whether items 1.13. (1)-(8) must include a letter specifically stating III. A completed Disclosure of Interest must be submitted with your proposal. landry's Lease In. Res 2 -11 -97 rep Risk Maw. —107— 11 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Ordinance appropriating $121,274.93 from the Municipal Court Building Security Fund designated for Municipal Court facility security including two Deputy City Marshals, walk -thru detector services, and temporary security services; changing the FY 2008 -09 Operating Budget adopted by Ordinance No. 027776 to increase appropriations by $121,274.93. ISSUE: The Municipal Court continues to find itself, as do other public entities in a fragile state, after the September 11th occurrence. Today, Building Security continues to be on the minds of everyone. Fortunately, the Court fmds itself in a good position to make positive efforts to improve staff and customer security. We are requesting approval of this agenda item to continue to move forward in providing the safest possible environment to all who work at or utilize the Municipal Court. REQUIRED COUNCIL ACTION: Approval of the ordinance to allow the Court to proceed with this process. PREVIOUS COUNCIL ACTION: Council has previously approved actions to perform necessary building modifications, hardware replacements and funding for security personnel from this fund. CONCLUSION AND RECOMMENDATION: We recommend the approval of the ordinance to allow the Court to proceed with this process. Honorable Ro o o Tamez Presiding Judg of Municipal Knirt Rene R. Mendiola Director of Municipal Court —1 1 1 — BACKGROUND INFORMATION This item has been presented to the Municipal Court Committee Chair, who informed us that we will meet with the Municipal Court Committee meeting prior to the Council Agenda of December 16th. In September 1995, the State Legislature passed a bill that allowed the Court to collect $3.00 on each conviction at Municipal Court. On November 21, 1995, the City Council approved the creation of the Municipal Court Building Security Fund at a fee of $3.00, to be used on defined items in the building that houses the Municipal Court. There is currently a fund balance of $121,440.36. The Municipal Court continues to find itself, as do other public entities in a fragile state, after the September 11th occurrence. Today, Building Security continues to be on the minds of everyone. Fortunately, the Court finds itself in a good position to make positive efforts to improve staff and customer security. The Court is requesting approval of this agenda item to do the following items: SECURITY DESK CITY MARSHAL COVERAGE: In Fiscal Year 2006 -2007, the City Council approved the Municipal Court City Marshals take over the Duty Desk area located on the first floor of the Police / Court building. Two Deputy City Marshals were required to replace the existing Corpus Christi Police Officer to properly handle this function. This has worked extremely well and the Court is confident that this item can continue to move forward with the approval of this Agenda Item. CONTRACT WITH VENDOR (SCREENING): The Court has purchased equipment by which we could monitor all individuals who enter the Municipal Courtrooms. Two Walk -Thru metal detectors have been successfully installed to ensure continued advancements in this area. This equipment has requirements for operations. Requests from interested parties to manage and operate this highly- sensitive equipment were made, including a month trail period of hands on operation. Lynwood Cain Security was the only company who successfully responded and indicated could perform the function. The other vendors responded to the inability to perform the function at this time. This will allow the Court to proceed with the operation of this most - critical function. At this time, this contract would be for the remainder of this fiscal year, with possible renewals, based on availability of funds and Council approval. SECURITY GUARD SERVICES: The Court is now equipped with fourteen (14) Deputy City Marshals, which provides a huge benefit to the City. We continue to execute warrants at a high level for the number of officers onboard. In addition, these officers provide building security at the Duty Desk, Municipal Juvenile Court, Juvenile Assessment Center, Environmental Court, as well as the Downtown Court. The ongoing issue with these top -notch individuals is that all other agencies are vying for the same top level officers. To hire an officer of this caliber requires approximately two to three months of the application process. Although we have been very successful in our efforts, it still leaves a void in personnel when an officer(s) move on. Therefore, to better balance the workload, the Court has historically utilized one (1) security guard to fill in gaps during the hiring process. The court fmds itself to continue with some existing and the creation of new programs that will positively impact court security. Therefore, it is with great excitement that we bring this to the City Council. The Court has had strong support in its endeavors to improve the quality and effectiveness of service that we provide and we continue to move forward on this front. —1 1 2 — Page 1 of 2 AN ORDINANCE APPROPRIATING $121,274.93 FROM UNAPPROPRIATED FUND BALANCE DESIGNATED FOR MUNICIPAL COURT FACILITY SECURITY INCLUDING TWO DEPUTY CITY MARSHALS, WALK -THRU DETECTOR SERVICES, AND TEMPORARY SECURITY SERVICES; CHANGING FY 2008 -09 OPERATING BUDGET ADOPTED BY ORDINANCE 027776 TO INCREASE APPROPRIATIONS BY $121,274.93; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $121,274.93 from the unappropriated fund balance designated for Municipal Court Facility Security is appropriated for Municipal Court Facility security including two Deputy City Marshals, walk -thru detector services, and temporary security services. SECTION 2. That Ordinance No. 027776 which adopted the FY 2008 -2009 Operating Budget is changed to increase appropriations by $121,274.93. 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 December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED as to form: December 8, 2008 By:.v, -i Lisa Aguila Assistant City Attorney for the City Attorney H:'LEG- DIR\Lisa\2008 ORDINANCES NuniCtSecurity Fund.doc —1 1 3— Henry Garrett Mayor 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon H:\LEG- DIR'Lisa12008 ORDINANCESUNuniCtsecurity Fund.doc -114- 12 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Ordinance appropriating $258,685.69 from the Municipal Court Technology Fund for Municipal Court technological improvements including Mentalix Live Scan equipment, cameras and other defined equipment for enforcement; changing the FY 2008 -09 Operating Budget adopted by Ordinance No. 027776 to increase appropriations by $258,685.69. ISSUE: The Municipal Court continues to find itself, as do other Municipal Courts to utilize the State - approved programs to improve the processes in the building that houses the Municipal Court. Fortunately, the Court finds itself in a good position to make positive efforts to improve staff and customer service. We are requesting approval of this agenda item to continue to move forward in providing the safest possible environment to all who work at or utilize the Municipal Court. REQUIRED COUNCIL ACTION: Approval of the ordinance to allow the Court to proceed with this process. PREVIOUS COUNCIL ACTION: Council has previously approved actions to perform necessary technological improvements from this fund. CONCLUSION AND RECOMMENDATION: We recommend the approval of the ordinance to allow the Court to proceed with this process. �-l7 Honorable Ro i s o Tamez Pre *ding Judge of MunicipafCourt Rene R. Mendiola Director of Municipal Court - 1 1 7 - BACKGROUND INFORMATION This item has been presented to the Municipal Court Committee Chair, who informed us that we will meet with the Municipal Court Committee meeting prior to the Council Agenda of December 16th. In September 1999, the State Legislature passed a bill that allowed the Court to collect $4.00 on each conviction at Municipal Court. On October 19, 1999, the City Council approved the creation of the Technology Fund at a fee of $4.00, to be used on defined items for technological improvements to Municipal Court. There is currently a fund balance of $258,906.27. The Court is requesting approval of this agenda item to do the following items: EQUIPMENT FOR ENFORCEMENT: In fiscal year 2006 -2007, several qualifying purchases of equipment were made which has had a significant impact on the prosecution of cases. These items included but were not limited to cameras for enforcement officers, high quality copiers, high quality computers and other related items that assist with this process. In this fiscal year, we hope to continue to purchase these types of identified equipment to continue this process. VIDEO CONVERSION: On September 11, 2004, the Municipal Court opened the City Magistration and Detention Facility. The operation of the facility has gone and continues to go well. The Court continually looks at ways to improve all processes. As a result, one of the items identified was the ability to monitor by video most activities that occur at the facility. The issue faced is that of retrieving information when requested, either internally or externally. With the current location of the hardware, this function must be performed at the secured facility, thus requiring an officer to perform this function. With this video conversion, this function can be performed a Municipal Court by Administrative staff. This will reduce the officer time to perform this function as well as reduce the time to produce the information. This is a win -win situation the Court is confident that this item can continue to move forward with the approval of this Agenda Item. LEASED COMPUTER EQUIPMENT: The City of Corpus Christi continues to move forward in its approach to stay abreast of technology. With this comes the need to maintain the quality of equipment for Municipal Court, including Computer Workstations, Servers, and Copiers. LIVE SCAN EQUIPMENT: As indicated before, on September 11, 2004, the Municipal Court opened the City Magistration and Detention Facility. Another result of continuous improvement, one of the items identified was the ability to monitor by video most activities that occur at the facility. One of the major processes performed at the facility is "fingerprinting" and running prints on persons processed through the facility. Since its inception, the Center has processed persons the "old" way to ink prints. With the technology advancements, the court is now in a position to move light years a head into electronic printing. This provides several advantages including the reduction of training time, the ability for all Detention Officers to be able to easily perform this function and the ability to share the information to anyone who can interface with the system. Currently, the Port of Corpus Christi, Nueces County, and Corpus Christi Police Department (to an extent) all utilize the current system. This too is a win -win situation the Court is confident that this item can continue to move forward with the approval of this Agenda Item. The court finds itself to continue with some existing and the creation of new programs that will positively impact court security. Therefore, it is with great excitement that we bring this to the City Council. The Court has had strong support in-11 Ltdeavors to improve the quality and effectiveness of service that we provide and we continue to move forward on this front. —119— Page 1 of 2 AN ORDINANCE APPROPRIATING $258,685.69 FROM THE MUNICIPAL COURT TECHNOLOGY FUND FOR MENTALIX LIVE SCAN EQUIPMENT, CAMERAS AND OTHER DEFINED EQUIPMENT FOR ENFORCEMENT; CHANGING THE FY 2008 -09 OPERATING BUDGET ADOPTED BY ORDINANCE 027776 TO INCREASE APPROPRIATIONS BY $258,685.69; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $258,685.69 from the Municipal Court Technology Fund is appropriated for Municipal Court technological improvements including Mentalix Live Scan equipment, cameras and other defined equipment for enforcement. SECTION 2. That Ordinance No. 027776 which adopted the FY 2008 -2009 Operating Budget is changed to increase appropriations by $258,685.69. 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 _ day of December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED as to form: December 8, 2008 By: ,N3-r Lisa Ague Assistant City Attorney for the City Attorney H:LLEG- DIRLLisa12008 ORDINANCES\MuniCtTechFund.doc —120— 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:tLEG- DIR\Lisat2008 ORDINANCESWIuniCtTechFund.doc -121- 13 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Ordinance appropriating $26,685.84 from the Municipal Court Judicial Improvement Fund to hire temporary staff; overtime for the Warrant Round Up and expenses related to extended hours and mail outs; changing the FY 2008 -09 Operating Budget adopted by Ordinance No. 027776 to increase appropriations by $26,685.84. ISSUE: The Municipal Court continues to find itself with an opportunity to improve enforcement of court cases. We are in this position because of the availability of funds. The Court utilizes this fund, as allowed by state statute for the purchase of items and services that would improve the processes. The items purchased would allow us to stay abreast with current needs. REQUIRED COUNCIL ACTION: Approval of the ordinance to allow the Court to proceed with this process. PREVIOUS COUNCIL ACTION: There has been no previous Council action on this item. CONCLUSION AND RECOMMENDATION: We recommend approval of the ordinance to allow the Court to proceed with this process. Honorable Ro Presiding Judg fo Tamez of Municipa o �' , JUACA Rene R. Mendiola Director of Municipal Court —125— BACKGROUND INFORMATION This item has been presented to the Municipal Court Committee Chair, who informed us that we will meet with the Municipal Court Committee meeting prior to the Council Agenda of December 16th. On January 1, 2004, the State Legislature passed a bill that allowed the Court to collect $25.00 on each conviction at Municipal Court. Of this $25.00, the Court is allowed to keep 10% of the fees collected for the sole purpose of Judicial Improvements and Efficiency. There is currently a fund balance of $26,685.84. The Court is requesting approval of this agenda item to do the following items: TEMPORARY SERVICES: The judicial section of the Court is faced with work while someone is out on leave. Additional funding for temporary personnel will provide the court with the ability to secure this opportunity. This became an issue since the ongoing improvements at the court have resulted in the improvement of service to our citizens. WARRANT ROUND UP OVERTIME: The Court continually strives to provide the best customer service possible. In February 2008, the Court participated in "The Great Texas Warrant Round Up" which proved to be successful for the Court. One of the goals of the Court, as well as Courts throughout the state is compliance. The Court, once again offered persons who pending cases at the Court had extended hours to address their pending cases and avoid the risk of being arrested. This too worked well, with approximately 1,800 warrants cleared during this three -week period. Providing this service required staff working planned additional hours which is covered by statute under this fund. OTHER EXTENDED HOURS / MAILOUTS: The Court continues to look at ways of providing the best service for its customers to address their outstanding cases with the Court. With this comes the opportunity to extend hours or do mail outs to remind citizens of their pending cases. This funding will allow this to continue on a "testing" small scale. It is with great excitement that we bring this to the City Council. The Court has had strong support in its endeavors to improve the quality and effectiveness of service that we provide and we continue to move forward on this front. —126— Page 1 of 2 AN ORDINANCE APPROPRIATING $26,685.84 FROM THE MUNICIPAL COURT JUDICIAL IMPROVEMENT FUND FOR TEMPORARY STAFF, OVERTIME FOR THE WARRANT ROUND UP, EXPENSES RELATED TO EXTENDED HOURS AND MAILOUTS; CHANGING FY 2008 -09 OPERATING BUDGET ADOPTED BY ORDINANCE 027776 TO INCREASE APPROPRIATIONS BY $26,685.84; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $26,685.84 from the Municipal Court Judicial Improvement Fund is appropriated to hire temporary staff, overtime for the Warrant Round Up and expenses related to extended hours and mailouts. SECTION 2. That Ordinance No. 027776 which adopted the FY 2008 -2009 Operating Budget is changed to increase appropriations by $26,685.84. 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 December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED as to form: December 8, 2008 By: Lisa Aguila Assistant City Attorney for the City Attorney H:\LEG- DIR \Lisa12008 ORDINANCES \MuniCtJudiciallmp.doc —127— 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon H:LLEG- DIRLLisa\2008 ORDINANCES \MuniCtJudiciallmp.doc —128— 14 CITY COUNCIL AGENDA MEMORANDUM December 16, 2008 AGENDA ITEM: RESOLUTION Expressing Support for the Big City Mayors' Legislative Initiative Dealing With Homelessness ISSUE: Addressing homelessness is an issue that is critical to each of the Big Cities and Texas in general. On November 5, 2008, Mayor Garrett received a letter of request from Fort Worth Mayor Mike Moncrief regarding a joint legislative effort by the Big City Mayors' of Texas to address homelessness. In Fort Worth an initiative was started in August 2007 called Project WISH (Workforce Innovative Solutions for Homelessness). This program was established and designed by a local workforce development board, the City of Fort Worth, Tarrant County, and other key partners to take vital job readiness training and placement services to the homeless population in their community, with promising results being achieved. Additional programs will be targeted to prevent homelessness, such as programs dealing with the re -entry of released inmates from Texas Dept. of Criminal Justice facilities into society. Enclosed is a summary of Project WISH, along with the letter from Mayor Moncrief requesting our participation in this joint effort. In short, we believe much work remains to be done in our communities by implementing programs of this nature if we are to complete the challenge of providing opportunity for this important segment of our society. A letter to legislative leadership will be drafted upon approval of the resolution requesting that the Big City Mayors be able to meet with State leaders to discuss these issues. Ultimately, the Big City Mayors will be requesting additional funding for homeless programs of this nature for our communities. REQUIRED COUNCIL ACTION: Approval of the Resolution CONCLUSION AND RECOMMENDATION: Staff recommends approval of the Resolution in support of the Big City Mayors' itj Rudy Gar± -131 Director of Intergovernmental Relations FORT WORTH November 5, 2008, The Honorable Henry Garrett Mayor, City of Corpus Christi 1201 Leopard Street Corpus Christi, Texas 78401 Dear Henry, • At this year's Big City Mayors meeting, we effectively addressed the issue of homelessness. I was glad to see us make it a priority for all of our cities. With that common goal in mind, we would like to share a project with all of you that was started in Port Worth in August 2007. It is called Project WISH (Workforce Innovative Solutions for Homelessness). This program was established and designed by our local workforce development board, the City of Fort Worth, Tarrant County, and other key partners to take vital job readiness training and placement services to our homeless population here in Port Worth. Enclosed is a summary of Project WISH, including Year 1 Outcomes. As you will see, while we are quite pleased with our initial effort, much work remains to'be done if we are to complete the challenge of providing opportunity for this important segment of our society. Your review of the summary of the program and any suggestions as to how we might work to improve our efforts will be deeply appreciated. We have also enclosed a resolution for your council to consider and approve dealing with two of our homelessness issues as well as a letter to Speaker Craddick requesting that we be able to meet with him to discuss these issues. It is our recommendation that we submit the letter to Speaker Craddickjointly and to do so we will need your council resolution along with an electronic version of your signature. Our office will then finalize the letter to Speaker Craddick with all of our signatures affixed and forward it, along witirour respective council resolutions. Our office will then work with the Speaker to arrange the meeting. Homelessness is an issue that is critical to each of our cities and Texas in general. If we continue to work together, I am confident we can achieve success. Thank you and I look forward to receiving your respective resolutions. Mike Moncrief I 44417 Mayor N MIKE MONCRIEF, AYOR THE Cm of Forty WORTH * 1000 TKMOCKMORTON ` * Forty WORTH, TEXAS 76102 817-392-6118 * FAx 817392 -2409 —1 3 2— 0 Prated on recycled papa Overview of the Program The Problem Prior to the initiation of this pilot project In August 2007, a disconnect existed between those organizations providing homeless services and those providing workforce services. Although a One -Stop Workforce Center Is but a few miles east of the area's concentration of homeless shelters and providers, is on the same road, and is on a direct bus line; few of those residing In the emergency shelters took advantage of services offered through the local Workforce Development Board, Workforce Solutions for Tarrant County (WSTC). Possible reasons homeless customers were not accessing the free Job placement services of WSTC Included a lack of knowledge about what services could be obtained and a fear of the unknown. In addition, residents are given a very limited number of bus passes each week to manage all of their appointments including medical, counseling, benefit application and maintenance, and other referrals. There simply were not enough bus passes to conduct a proper job search or make trips to the workforce center. In an effort to Increase the number of customers receiving workforce services and to bridge the apparent gap between the service providers, WSTC began providing job readiness services onsite at the emergency shelters on E. Lancaster. Program Goal The primary goal of Project WISH Is to provide employment services to the homeless population in a location that is easily accessible, eta level that meets individual needs, and in an atmosphere of acceptance and support maximizing each person's individual potential and likelihood of achieving self-sufficiency. The initial year of the project required flexibility, creativity, and many adjustments in order to work out coordination issues. Program Design and Costs During the pilot year of operation (September 2007 to September 2008), WSTC allotted one professional level workshop facilitator and contracted with The Women's Center of Tarrant County, Inc to provide intensive case management to Project Wish customers with severe barriers to employment. These two costs were borne by WSTC utilizing special Workforce investment Act (WIA) funding that does not have the required performance expectations of regular formula WIA. Because most of the Federal and State funding received by WSTC Is tied directly to categorical programs that have eligibility guidelines and strict performance outcome requirements, and the special funding used Is extremely limited, WSTC is unable to-provide support services to participants unless they meet eligibility for a particular program and are enrolled. This severely limits access to support services for this project because many participants do not meet narrow guidelines for enrollment In a program. • In spite of no additional budget for such Items as bus passes, work - related expanses, or other Items necessary for customers to accept or keep a job, Project WISH successfully served and met the Job readiness needs of the participants through collaborative efforts and pooling of available resources of all entities involved. A continuum of workshops In a repeating 7 week series are provided at five sites where the • homeless are sheltered or gather for services. The workshops cover an orientation to services available at the workforce centers; how to use the statewide electronic job matching system; stress and time management developing a job search plan; career assessment and labor market information; resume writing and preparing applications; advanced interviewing tips and thank you letters. -133- The practice of holding formal graduation ceremonies for completion of the 7 week series began in March 2008. Graduations continue to be held and have become increasingly elegant, featuring keynote speakers such as Fort Worth Mayor Mike Moncrief and Tarrant County Commissioner Roy Brooks. This proved to be a best practice as it motivated participants to complete the entire series of workshops and provided a defined starting and ending point and provided participants with recognition of their accomplishment in completing the task they had begun. In May 2008, the project began outreach to the employer community in order to find businesses Interested in hiring the program graduates. Outreach was conducted with a letter from the Chief Elected Officials of our major Cities/County encouraging participation of a targeted group of employers. This attempt proved fruitful with an Initial 8 employers making contact with the program. Ongoing outreach to employers continues. During the first year, the project was unable to work intensively with customers after Project WISH graduation to ensure placement in demand jobs at livable wages with fringe benefits and career ladders due to lack of funding for such a position. With $40,000 funding from the United Way of Tarrant County and continued dedication of flexible WIA funding from WSTC. year 2 will include the addition of a Job Placement Specialist who will fill the gap at the end of the continuum and serve to dramatically Increase the entered employment rate and a part -time case manager to coordinate supportive services needs with available resources. Demonstrating Success Year 1 Outcomes During Year 1 of the project, just over 800 homeless residents were served. Our entered employment rate for year 1 was 30 %, and the retention rate was 86 %. Additional outcomes are listed in the chart below: Year 2 Planned Outcomes As the program succeeds In placing those with marketable skills and few barriers to employment, enrollments will increase of homeless individuals with fewer marketable skills and multiple. Year 2. planned outcomes have been set with this in mind. —134— Partners Union Gospel Mission (Fort Worth Shelter) Day Resource Center (Fort Worth Day Shelter) Presbyterian Night Shelter, Lowdon-Schutts Building (Fort Worth Shelter) Presbyterian Night Shelter, Main shelter (Fort Worth Shelter) Salvation Army Mabee Center (Fort Worth Shelter) Salvation Army Arlington Family We Center (Arlington Shelter) Eastelde Workforce Center (Workforce Center) Women's Center (Case Management) The Ft Worth Transportation Authority (The T) (Transportation Authority) Mission Arlington (Low-Income Assistance) Arlington Housing Authority (Housing Authority) Arlington Police Dept. (Outreach) Tarrant County Homeless Coalition (Support & Planning) United Way of Tarrant County (Funding Partner) City of Fort Worth (Guidance, Planning, Funding) Workforce Solutions for Tarrant County, (Funding, Management) Managing the Partnership The Hopeless Management Information System (HMIS) data system -whose use is required by Housing and Urban Development (HUD) funded organizations —is used as the principal data collection instrument. All partners are required to record client services in the shared case file in HMIS. Written weekly, "Friday Reports" are required of all partner shelters each Friday by close of business providing information on that weeks activities. Also, Tarrant County ACCESS, the administrators piths HMIS system, pulls a weekly data report each Monday containing comprehensive program data. All reports are submitted to the Board Staff overseeing the protect, who aggregate the data and distribute findings to stakeholders weekly. This practice provides a feedback loop so that all Involved have Input and receive feedback on progress. Contact fniormatlon: Kay L. Gollihugh CapacityBullding & Training Manger Workforce Solutions for Tarrant County Board Administrative Office 1320 S. University, Suite 800 Fort Worth, TX 76107 817 - 4134460 (Office) -135- DRAFT Bin City Mayors) November 5, 2008 The Honorable Tom Craddick Texas House of Representatives P.O. Box 2910 Austin, Texas 78768 Dear Speaker Craddick: Recently, the City of Port Worth hosted the Big City Mayors meeting, which was composed of Mayors representing the eight most populous cities in Texas. We met to discuss many issues and to determine the concerns we believe to be the most critical to the future of our cities. Based upon our discussions, we agreed that two very important issues, common to all of our cities, are the following: 1. Seek state funding and programs to support local efforts to address the homelessness issue which exists within our Texas cities, Specifically, we are seeking to: o Create strategic partnerships with the Texas Department of Criminal Justice to better link the re -entry population from our prisons, and the operational and service subsidies that come with them, to supportive housing projects; and o Seek from the Texas Department of Criminal Justice or Department of Public Safety the pre - release issuance of a Texas YD Certificate for everyone discharged from a Texas jail or prison. 2. Seek legislative authority for local option elections to provide for transportation funding, from a menu of options, for rail and transportation projects; and mandate that those cities, counties or regions approving such local transportation funding not lose any state or federal funding in doing so. HillCo Partners has committed to represent our cities relative to the homelessness issues that are outlined in bullet number one above. Enclosed are council resolutions from each of our cities to show support for this effort. On submitting this letter, we would like to respectftdly request a meeting with you to discuss in detail our concerns and thoughts about how the legislature can effectively address these vital matters. We will be contacting your office to determine a time for that meeting. Thank you for your consideration of these issues and our request to meet with you. Sincerely, Signatures of Participating Big City Mayors —136— RESOLUTION EXPRESSING SUPPORT FOR THE BIG CITY MAYORS' LEGISLATIVE INITIATIVE DEALING WITH HOMELESSNESS WHEREAS, on August 29, 2008, the "Big City Mayors" group met in Fort Worth for its quarterly meeting. Of the eight members, the mayors of Arlington, Dallas, Fort Worth, Houston, and El Paso attended the meeting. The Mayors of Austin, San Antonio, and Corpus Christi were absent, but they were represented by staff; WHEREAS, in discussing a potential legislative agenda for the Big City Mayors, one vitally important issue that was discussed was the issue of homelessness; WHEREAS, homelessness is an issue that impacts cities throughout Texas as evidenced by the fact that on a single day in January 2007, 44,492 homeless Texans were counted, and it is estimated that 247,500 Texans become homeless each year; WHEREAS, specifically, there are two matters of concern: 1. The lack of coordination of the operational and service subsidies provided by the Texas Department of Criminal Justice for the members of the re -entry population being released from Texas custody and the supportive housing projects that are provided by local governments and charities. 2. The lack of proper official identification documents for people being discharged from a Texas jail or prison; WHEREAS, HillCo Partners, a government affairs consulting firm in Austin, Texas, has expressed a willingness to work with the Big City Mayors, on a pro -bono basis, in addressing the two homelessness issues outlined above; and WHEREAS, certain members of the "Big City Mayors" group have elected to join forces to address these two issues, and in doing so, wish to enlist the services of HilICo Partners to assist with the successful implementation of measures that effectively address these issues. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City of Corpus Christi, Texas, as a member of the Big City Mayors' consortium, does adopt as a part of its legislative program for 2009 and will support the following two initiatives:. a. Creation of a strategic partnership with the Texas Department of Criminal Justice that will provide a better link between the operational and service subsidies that come with the re -entry population being released from Texas custody and available housing projects at the local level from governments and charities. Big City Homeless Res 12012008 —137— b. Providing for the pre - release issuance of Texas Identification Certificates by the Texas Department of Criminal Justice or Department of Public Safety for everyone discharged from a Texas jail or prison. SECTION 2. The City of Corpus Christi, Texas, consents to the firm of HillCo Partners of Austin, Texas, representing the City in addressing these two issues during the 2009 legislative session on a pro -bono basis. SECTION 3. The City of Corpus Christi, Texas, supports of the efforts of HilICo Partners and will provide additional council resolutions, correspondence from appropriate municipal officials, or testimony, either written or oral, at times it is requested to do so by HillCo Partners. ATTEST: Armando Chapa City Secretary �ih APPROVED: o day of December, 2008. R. J4 R ping 7 First Assistant City Attorney For City Attorney Big City Homeless Res 12012008 —138— THE CITY OF CORPUS CHRISTI Henry Garrett Mayor 2 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 Big City Homeless Res 12012008 —139— 3 15 CITY COUNCIL AGENDA MEMORANDUM Date: December 16, 2008 AGENDA ITEM: Motion authorizing the City Manager or his designee to execute a subrecipient agreement with the CCCIC to fund The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. ISSUE: Subrecipient agreements with organizations who were awarded HOME Investment Partnerships (HOME) funds need to be approved by the City Council PRIOR: On April 17, 2007, the City Council adopted its FY2007 Consolidated Annual Action Plan for Community Planning and Development Programs that includes $3,480,612 for the CDBG Program, $470,000 of program income from housing loans, $65,569 of demolition lien program income, $131,835 of reprogrammed funds, and $150,498 for the ESG Program and $1,649,582 for HOME Investment Partnerships (HOME) Program, $25,570 of the American Dream Downpayment Initiative, $175,385 of program income and $702,898 of reprogrammed funds totaling $6,851,949 (M2007 -106). Within this action, the Affordable Living Development conceptual project was approved for $200,000 of HOME funding to provide for permanent supportive housing units for purpose of decreasing the duration of homelessness On April 15, 2008, the City Council adopted its FY2008 Consolidated Annual Action Plan for Community Planning and Development (CPD) Programs that includes $3,354,513 for the Community Development Block Grant (CDBG) Program, $100,000 of reprogrammed funds, $128,586 of demolition lien program income and $470,000 of program income from rehabilitation loans, and $149,967 for the Emergency Shelter Grant (ESG) Program and $1,604,096 for HOME Investment Partnerships (HOME) Program, $100,000 of program income and $10,331 of the American Dream Downpayment Initiative totaling $5,917,493 (Resolution 027663). Within this action, the TX LULAC project, an affordable living development, was approved for $200,000 of HOME funding to provide for the "adaptive reuse of a 68 -year old building." While the original scope included adaptive reuse /new construction, this project scope has since evolved to encompass acquisition and development costs. REQUIRED COUNCIL ACTION: Authorize the City Manager or designee to execute a Subrecipient agreement for funds provided for The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. —143— RECOMMENDATION: That the City Manager or designee be authorized to execute a Subrecipient agreement for funds provided for The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. ADDITIONAL SUPPORT MATERIAL Background Information LI List of approved projects it e. Daniel Gallegos Jr.; CD Administrator —144— BACKGROUND INFORMATION Staff released a Pre - Application form, a prerequisite for submitting a Request for Proposal (RFP) for the 2008 CDBG, ESG and HOME programs, on January 2, 2008 and was due on January 25, 2008. This allowed staff to preliminary review potential projects that were seeking federal funding. Subsequently, the Full Application /RFP was posted on the City's website for interested parties in submitting which was due on February 29, 2008. Staff forwarded the 2008 Consolidated Annual Action Plan (CAAP) books to City Council, which consisted of all eligible proposed projects, on March 28, 2008. City Council held a public hearing on April 8, 2008 concerning the 2008 CAAP that included CDBG, ESG and HOME projects and activities funded with entitlement funds, program income and reprogrammed funding totaling $5,917,493. On April 15, 2008, City Council approved the 2008 CAAP which included the TX LULAC project for $200,000. This combined with the "Affordable Living Development" project approved by City Council on April 17, 2007, provides $400,000 of HOME program funds for the affordable housing project. TX LULAC is providing for a capital contribution of $250,000, and the Texas Department of Housing and Community Affairs is providing for the remainder of the approximately $3.3M of low income housing tax credits which ensures the viability of the affordable housing project. The $400,000 of HOME funds will provide for property acquisition and development costs. Property acquisition at 420 N. Port at Commanche is expected to take place on December 20, 2008, for approximately $275,000. The remainder of HOME funds will be used for development costs to included soft and some hard costs. The number of permanent supportive housing units (80) this project is proposing to be completed remains unchanged as with the original proposal. Anticipated start of construction is September 2009 with approximately 10 months for the project completion. As a follow up, a HOME program contract will be executed between the Corpus Christi Community Improvement Corporation and The Apartments of the Village for $400,000. As a result, staff is recommending the authorization to execute a Subrecipient agreement for funds provided for The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to a P • • • - • • l • • - - • ment to he Inflated at 470 N Port —145— 16 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16. 2008 AGENDA ITEM: Resolution reaffirming the City of Corpus Christi's Investment Policy. ISSUE: Under Texas Government Code, Chapter 2256, Subchapter A. Authorized Investments For Governmental Entities, the State of Texas delineates the types of investments and the investment rules which must be followed by governmental entities. This chapter is often referred to as the Public Funds Investment Act. The City has established an Investment Committee which consists of the City Manager, Assistant City Managers, City Attorney, Director of Financial Services, and Assistant Director of Financial Services over Management and Budget, or their designees. The Committee met on December 1, 2008 to review and approve the Investment Policy. No changes are recommended at this time. Additionally, in accordance with the Public Funds Investment Act which requires the governing body to approve the City's investment policy annually, City staff is recommending approval of the policy as presented. REQUIRED COUNCIL ACTION: The Public Funds Investment Act requires the governing body annually to formally approve by resolution the City's Investment Policy. CONCLUSION AND RECOMMENDATION: City staff and the City's Investment Committee recommend approval of the resolution as presented. Attachment: Investment Policy Resolution —1 4 9— Constance P. Sanchez Interim Director of Financial Services RESOLUTION REAFFIRMING THE CITY OF CORPUS CHRISTI INVESTMENT POLICY WHEREAS, the City of Corpus Christi Investment Policy was adopted in Resolution No. 022390 on October 24, 1995; amending in Resolution No. 022980 on July 8, 1997; amended in Resolution No. 023472 on October 27, 1998; amended in Resolution No. 023864 on December 14, 1999; amended in Resolution No. 024208 on September 12, 2000; amended in Resolution No. 024679 on December 11, 2001; amended in Resolution No. 025151 on December 17, 2002; amended in Resolution No. 025266 on April 15, 2003; amended in Resolution No. 025557 on November 11, 2003; amended in Resolution No. 026345 on July 19, 2005; amended in Resolution NO. 027290 on May 29, 2007; and amended in Resolution 027520 on December 11, 2007; WHEREAS, the Investment Policy provides for annual review by City Council; WHEREAS, the Public Funds Investment Act requires annual review by the governing body of its Investment Policy, and adoption of a written instrument stating that it has reviewed the investment policy and investment strategies; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Corpus Christi City Council has reviewed and reaffirms the Investment Policy as previously adopted by Resolution Number 027520 on December 11, 2007. A copy of the Investment Policy is attached. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED: December 5, 2008. Lisa Aguilary Assistant City Attorney for the City Attorney H: \LEG- DIR \Lisa12000 Resolutions\Investment Policy.doc -150- 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 —151— TABLE OF CONTENTS Page I. INTRODUCTION 2 II. PURPOSE 2 III. DEFINITIONS 3 IV. INVESTMENT OBJECTIVES 4 V. AUTHORIZED INVESTMENTS AND MAXIMUM TERM 6 VI. INVESTMENT MIX AND STRATEGIES 10 VII. RESPONSIBILITY AND CONTROLS 11 VIII. COMPETITIVE SOLICITATION 13 IX. AUTHORIZED INSTITUTIONS 13 X. PLEDGED COLLATERAL 14 XI. SAFEKEEPING 14 XII. WIRE AND ELECTRONIC SERVICES 15 XIII. INFORMATION REPORTING /EVALUATION 15 XIV. BANKING SERVICES 17 XV. GENERAL PROVISIONS 17 APPENDICES A. PUBLIC FUNDS INVESTMENT ACT 1 -14 B. CITY'S CODE OF ETHICS ORDINANCE 1 -8 C. RESOLUTION 1 D. LEGAL DEFENSE AND INDEMNIFICATION OF CITY OFFICERS AND EMPLOYEES 1 -2 E. WIRE AND ELECTRONIC SERVICES 1 -152- 1 I. INTRODUCTION The City of Corpus Christi shall invest all available monies in compliance with this Investment Policy as authorized by the Public Funds Investment Act. Effective cash management is recognized as essential to good fiscal management. An aggressive cash management program will be pursued to maximize interest earnings as a viable and material revenue source. The City's portfolio shall be designated and managed in a manner responsive to the public trust and consistent with local, state, and federal law. Investments shall be made with the primary objective of: • Preservation of capital and protection of principal; • Maintenance of sufficient liquidity to meet operating needs; • Security of city funds and investments; • Diversification of investments to minimize risk while maximizing interest earnings; and • Maximization of return on the portfolio. Earnings from investments will be used in a manner that will best serve the interests of the City of Corpus Christi. Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of that person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. II. PURPOSE A. Authorization This Investment Policy is authorized by the City Council in accordance with Chapter 2256, Subchapter A of the Govemment Code - The Public Funds Investment Act (see the attached and incorporated Appendix A). B. Scope This Investment Policy applies to activities of the City, excluding pension funds, with regard to investing the financial assets of Funds, including, but not limited to: General Fund Special Revenue Funds Enterprise Funds Internal Service Funds Special Purpose Funds (within the control of Investment Officers) Capital Improvement Funds (Bond Proceeds, Bond Reserves, Debt Service and Commercial Paper) In addition to this policy, the investment of Bond Funds, Debt Service, and Reserve Funds shall be managed by their governing ordinances and Federal 2 -153- Law, including the Tax Reform Act of 1986 and subsequent legislation. C. Review and Amendment This Policy shall be reviewed annually by the City Council on or before December 31 of each calendar year subsequent to its adoption. Amendments must be authorized by the City Council. The City Council shall adopt a written instrument by ordinance or resolution stating that it has reviewed the Investment Policy. The written instrument so adopted shall record any changes made to the Investment Policy. Ili. DEFINITIONS Authorized City Representative - Officers authorized to transact as set out in the attached and incorporated Appendix A on behalf of the City (City Treasurer, Investment Analyst, Controller, Chief Accountant, Deputy Director of Financial Services and Director of Financial Services). Authorized Selling Group - Primary dealer and regional firms that have been selected by the underwriter to sell their securities. Each authorized member of a selling group will offer the issue at the price authorized by the govemmental agency. Collateral - Securities pledged by an Institution to safeguard City assets; the City requires either U.S. Treasuries or U.S. Agencies Securities so that the market values can be readily determined at any point in time. Director of Financial Services - The Director of Financial Services is the Municipal Finance Officer responsible for City investments. Director of Financial Services Designee — Deputy Director of Financial Services, Controller or Chief Accountant. Excess Cash Balances - Collected bank balances not needed to pay estimated check clearings. Failed Transaction - An Investment, which an Institution fails to deliver to the City's Third Party Safekeeping Institution. Institution - Any firm, bank, bank holding company, broker or dealer who provides quotes for either the purchase or sale of investments. Investment - All authorized Securities listed in Item V. Authorized investments and maximum term investments approved by the Investment Committee include U.S. Treasuries, U.S. Agencies, Repurchase Agreements, Local Government Investment Pool, Guaranteed Investment Contracts (with respect to bond proceeds), and Collateralized Certificates of Deposit. Investment Officers — City Treasurer and Investment Analyst. Investment Portfolio - All City monies being invested under authority of the Investment Officers. Qualified Representative - A person, who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: —154— (A) For a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers; (B) For a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution; or (C) For an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument on behalf of the investment pool. (D) For an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or, if not subject to registration under that Act, registered with the State Securities Board, a person who is an officer or principal of the investment management firm. Reserve Funds - Funds designated by Council for specific purposes, which have not been appropriated for spending. Securities - Approved Investments designated by the Investment Committee to be held in the Investment Portfolio or acceptable to be pledged as Collateral to secure the monies of the City. Special Purpose Funds - Monies of non -profit corporations that Investment Officers are permitted to invest; includes such entities as the Coastal Bend Health Facilities Development Corporation, Corpus Christi Housing Finance Corporation, Corpus Christi Community Improvement Corporation, HOME Project, First Time Home Buyer, Corpus Christi Industrial Development Corporation, Corpus Christi Business and Job Development Corporation, North Padre Island Development Corporation, Corpus Christi Crime Control and Prevention District, and Corpus Christi Digital Community Development Corporation. Third Party Safekeeping Institution - Any Institution not affiliated with Institution delivering the Investment. IV. INVESTMENT OBJECTIVES The following states the investment objectives of the City, in order of priority: A. Preservation and Safety of Principal Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall Investment Portfolio. B Liquidity The City's Investment Portfolio must be structured in a manner which maintains the liquidity necessary to pay obligations as they become due. Sufficient cash flows must be maintained by rapidly depositing monies and timing disbursements. Generally, Investments are matched to specific cash flow 4 —155— requirements such as payrolls, construction drawdown schedules, debt service payments, and other payables. Liquidity is also achieved by investing in Investments with active secondary markets or in Local Government Pools with stable net asset values. It is imperative that the Investment Portfolio and Excess Cash Balances be protected with sufficient Collateral at a minimum of 102% of current market values so that monies are available as needed. C. Return on investments The City's Investment Portfolio shall be designed with the objective of regularly exceeding the average yield of the following benchmarks in a manner consistent with the principles of this policy described in IV.A and B. Six -month average of Texpool, Texstar and Texas Daily However, it must be recognized that during a declining market, satisfying this objective may not be practical until Investments mature and can be re- invested, especially since preservation of capital is the first priority in the investment of monies pursuant to this Policy. For bond issues to which arbitrage restrictions apply, the primary objectives shall be to obtain satisfactory market yields and to minimize the costs associated with investing such monies. D. Diversification Diversification is required because of differing liquidity needs of the City and is the employed risk. Diversification to overall vestment Portfolio of potential losses individual and enhances the safety of the Investment Portfolio. Through the solicitation of competitive proposals, the City shall allocate and d diversify its Investments through various Institutions. The following types Investments will be solicited from approved Institutions: 1. U.S. Treasuries 2. U.S. Government Agencies 3. Agreement which ncludestan approved rprimary dealer doing business in Texas as required by the PFIA. aci ation agreements; and 4. Public Funds Investments Pools - through h participation 5. Certificates of Deposit - through approved 6. Money Market Mutual Funds 7. Guaranteed Investment Contracts (for Bond Proceeds only) 8. Texas Term Investment Pool. 9. Securities Lending Program The City recognizes that investment risks can result from default risk, credit fundame volatility risk, and market price risks due t leading tech hnical a and i I nd d ty ntal economic factors, and other complications, —156— To control market price risks, volatile Investments shall be avoided. To control default risk, the only acceptable method of payment will be on a delivery versus payment -basis for all transactions, except investment pool funds and repurchase agreements. Delivery versus Payment provides for payment to Institutions at the time the Investments are recorded in book entry form at the City's Third Party Safekeeping Institution, currently maintained at the Federal Reserve. For certificates of deposit, sufficient Collateral at 102% of current market values must be pledged to protect all City monies or monies under its control that exceed Federal Deposit Insurance Corporation (FDIC) coverage; the Collateral must be safe kept at a Third Party Safekeeping Institution not affiliated with the bank or bank holding company providing the certificate of deposit. V. AUTHORIZED INVESTMENTS AND MAXIMUM TERM The City of Corpus Christi is authorized to invest in: A. Authorized Investments Obligations of the United States or its agencies and instrumentalities, which currently include: 1. Short-term U.S. Treasuries: Maximum Term o 365 days a. U.S. Treasury Bills up u to 3 years b. U.S. Treasury Coupon Notes up to 3 years c. U.S. Treasury Notes and Strips MaximmTeer 2. U.S. ed Agencies: al up to 2 years a. Federal Home Loan Bank u to 2 years b. Federal National Mortgage Association. up to 2 years c. Federal Farm Credit to 2 years u d. Federal Horne up Loan Mortgage Corporation p to 2 years e. Federal Agricultural Mortgage Corporation up 3. Repurchase Agreements up to 365 days Repurchase agreements must be fully collateralized 02%ewith a defined maturity date placed with a primary government and safekept at a Third Party Safekeeping Institution, as provided under the provisions of the PSA (Public Securities Association) master repurchase agreement. An executed agreement between the City, primary government dealer and Third Party Safekeeping be on file before the City will enter into a tr partyrepurhaseagreement Weekly monitoring by the City's Investment Officers of all Collateral underlying repurchase agreements is required. More frequent monitoring may be necessary during periods of market volatility. Reverse repurchase agreements are not a permitted Investment. —157— 4. Local Government Investment Pool up to 1 year Investments made on behalf of the City by a public funds investment pool duly created to function as a money market mutual fund that marks its portfolio to market daily and, to the extent reasonably possible, which stabilizes its portfolio to market daily and, to the extent reasonably possible, which stabilizes its portfolio at a $1 net asset value. If the ratio of the market value of the Pool's portfolio divided by the book value of the portfolio is less than 99.50% or greater than 100.50 %, the Pool's portfolio holdings shall be sold as necessary to maintain the ratio between 99.50% and 100.50 %. The maximum amount that may be invested in any one local government investment pool is the lesser of the following: (i) five (5) percent of the total current invested balance of the local govemment investment pool, or (ii) $75,000,000. The maximum total amount that may be invested in all overnight local government investment pools is thirty (30) percent of the Investment Portfolio. The Director of Financial Services or designee may allow for up to a two -week increase in maximum amounts upon notification to Investment Committee. The public funds investment pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. Local Govemment Investment Pools may contain investment securities that are not directly authorized by this Policy, so long as (i) the rating standard hereinabove stated is satisfied, and (ii) the investment is permitted by Subchapter A of the Texas Public Funds Investment Act, Chapter 2256 of the Texas Government Code. 5. Collateralized Certificates of Deposit up to 1 year Certificates of deposit or other instruments issued by state and national banks domiciled in Texas that are: a. Guaranteed or insured by the Federal Deposit Insurance Corporation or its successor; or b. Secured by obligations that are described by Section V, Subdivision A.1 (a) through A.2 (e). Certificates of deposit must be fully collateralized at 102% of their market value. The City requires the bank to pledge U.S. Treasuries or U.S. Agencies as collateral. (Collateral Mortgage Obligations will not be eligible as Collateral -see X.C.). The Investment Officers will monitor adequacy of collateralization on a weekly basis. 6. Money Market Mutual Fund A no -load money market mutual fund (no service charge) is an authorized investment if: 7 -158- a. the money market mutual fund is registered with and regulated by the Securities and Exchange Commission b. the money market mutual fund provides the City with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a -1 et seq.); c. the money market mutual fund has a dollar weighted average stated maturity of 90 days or fewer; and d. the money market mutual fund includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. e. the assets of the money market mutual fund are invested in those investments authorized under this Investment Policy. 7. Guaranteed Investment Contracts up to 3 years Guaranteed investment contracts offer to pay a specific interest rate over a period of time, and can be structured to reflect an anticipated draw down schedule for capital improvements funded with bond proceeds. The collateral and monitoring requirements applicable to repurchase agreements shall apply to guaranteed investment contracts. A guaranteed investment contract may be utilized only in connection with the investment of bond proceeds. The maximum term of a guaranteed investment contract shall not exceed the anticipated construction period for the capital improvement, the construction of which is to be funded with Bond Proceeds. 8. Texas Term Investment Pool up to 1 year The Texas Term Local Government Investment Pool was created by Texas local governments to provide investment programs tailored to the needs of Texas cities. Texas Term is a fixed rate, fixed term portfolio option rated AAAf by Standard and Poor's Corporation. Participants may lock in a fixed rate for a term of 60 to 365 days. The Pool is directed by an Advisory Board of experienced local finance directors and treasurers. 9. Securities Lending Program up to 1 year Securities lending program qualifies as an authorized investment if the value of the securities loaned under the program is not less than 100 percent collateralized. A loan made under the program must allow for termination at any time. A loan made under the program must be secured by pledged securities described by Section 2256.009(a), pledged irrevocable letters of credit issued by a bank that is organized and existing under the laws of the United States or any other state and continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent or cash invested in accordance with Section 2256.009, 2256.013, 2256.014 or 2256.016. The terms of a loan made under the program must require that the securities being held as collateral be pledged to the investing entity, held in the investing entity's name and deposited at the time the investment is made with the entity or with a third party selected by or approved by the investing entity. 8 —159— A loan made under the program must be placed through a primary government securities dealer or a financial institution doing business in the state. An agreement to lend securities must have a term of one year or less. B. Weighted Average Maturity In order to minimize risk of loss to the Investment Portfolio due to interest rate fluctuations, Investment maturities will not exceed the anticipated cash flow requirements of the Funds. Maturity guidelines by Fund are as follows: The maximum term for any Investment other than Reserve Funds is three years. The weighted averaged days to maturity shall be less than 365 days for Investments, other than Reserve Funds. 1. Operating Funds The weighted average days to maturity of Investments, other than Reserve Funds, shall be 365 days or less. The Investment Officers will monitor the maturity level and make changes as appropriate.. 2. Capital Improvement Funds (Bond Proceeds, Bond Reserves, Debt Service and Commercial Paper) The Investment maturity of that portion of the City Portfolio that represents Capital Improvement Funds (bond proceeds, reserve funds, debt service and Commercial Paper) shall be determined considering: a. The anticipated cash flow requirements of the Capital Improvement Funds; and b. The "temporary period" as defined by Federal income tax law during which time bond proceeds may be invested at an unrestricted yield. After the expiration of the temporary period, bond proceeds subject to yield restriction shall be invested considering the anticipated cash flow requirements of the Capital Improvement Funds. Before an investment can be made of bond proceeds from all bond issues affected by the tax - exempt bond provisions of the Internal Revenue Code of 1986, as amended (the "IRC "), a careful yield analysis must be performed to comply with the IRC. Also, an annual rebate calculation must be performed to determine if the City is required to rebate interest at the end of each respective bond issue's five -year term. Beginning on the anniversary of the third year for the respective bond issues, all bond proceeds will be yield restricted as required by the IRC. 3. Reserve Funds: Established by Operative Bond Funds or by the City Council. The following Reserve Funds may be invested up to five years in U.S. Treasuries or Agencies: Maximum Choke Canyon Fund 4050 $10,000,000 9 -160- City monies governed by this Policy may not be invested in other investments permitted by law unless (I) such investments are specifically authorized for the investment of these monies by an ordinance adopted by the City Council issuing bonds or other debt obligations or (ii) this Policy is amended to permit such investment. C. Methods to Monitor Investment Market Price The City monitors the market price of investments by obtaining this information from the Bloomberg system which is made available through the City's authorized institutional brokers. The City may also obtain market price information from other nationally recognized sources of financial information such as the Wall Street Joumal. VI. INVESTMENT MIX AND STRATEGIES A. Investment Mix A minimum of 15% of the total Investment Portfolio shall be held in Investments with maturity dates of 90 days or less for liquidity. U.S. Treasuries/Agencies may be purchased for longer -term maturities (greater than one year) but shall not exceed 40% of the total Investment Portfolio to preserve liquidity. Daily Investment reports shall specifically address whether stated Investment mix requirements are being met. Unless approved by the Investment Committee, the target percentages specified shall not be exceeded for temporary periods greater than thirty (30) days without the Investment Officers taking corrective action. B. Strategies Investment strategies for Operating Funds and Capital Improvement Funds have as their primary objective the assurance that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create an Investment Portfolio structure, which will experience minimal volatility during economic cycles. To accomplish this strategy, the City will purchase high quality, short-to- medium -term investments which will compliment each other. To pay for anticipated disbursements, investments will be laddered to correspond with the projected cash needs of the City. Some Investments are acquired on the short end of the yield curve (90 days or less) to meet immediate cash needs. A few Investments are purchased on the intermediate part of the yield curve (1 -3 years) to lock in higher interest rates when rates are projected to decline due to the economic cycle of the economy. The dollar weighted average investment maturity of 365 days or less will be calculated using the stated final maturity dates of each investment. Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligations on the required payment date. Investments purchased shall not have a stated final maturity date that exceeds the debt service payment date. Investment strategies for debt service reserve funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate debt service fund from investments with a low degree of volatility. In accordance Io —161— with the bond ordinance specific to an individual bond issue, which sets out the maximum investment term, Investments should be of high quality, with short-to- intermediate -term maturities. Investment strategies for Special Purpose Funds will have as their primary objective the assurance that anticipated cash flows are matched with adequate Investment liquidity. These investment portfolios shall include highly liquid investments to allow for flexibility and unanticipated project outlays. The stated final maturity dates of Investments held shall not exceed the estimated project completion date. C. Achieving investment Return Objectives Investment selection shall be based on legality, appropriateness, liquidity, and risk/return considerations. Monies designated for immediate expenditure should be passively invested. Passive Investment provides for: 1. Liquidity to pay upcoming disbursements (payroll, debt service, payments, payables, etc.) 2. Maximizing investment terms under the current budget; and 3. Structuring the Investment Portfolio on a "laddered" basis. The remaining portion of the Investment Portfolio may be invested actively and the reasons for doing so are: Active investment provides for: a. The ability to improve yields in the Investment Portfolio by riding the yield curve during business cycle recovery and expansion periods. Interest rates on longer maturities typically exceed those on shorter maturities. Therefore, longer maturities (that can be held to maturity, if necessary) are purchased in anticipation of selling later at the same or lower interest rate, improving the total return during the holding period. b. The ability to improve market sector diversification by swapping out of one investment into another for a better total return, to realign for disbursement projections, or to extend or shorten maturity depending on economic forecasts. The City Manager, or his designee, is required to approve any investment that must be sold at a loss. All gains and losses will be reported to the City Council and Investment Committee no less frequently than on a quarterly basis. VII. RESPONSIBILITY AND CONTROLS A. Authority to Invest The authority to invest City funds and the execution of any documentation necessary to evidence the investment of City funds is granted to the City Treasurer. The City Treasurer and the Investment Analyst are the designated 11 —162— Investment Officers responsible for the daily operation of the investment program. The City Council may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b -1 et seq.) or with the State Securities Board to provide for the investment and management of public funds or other funds under its control. A contract made under authority of this subsection may not be for a term longer than two years. A renewal or extension of the contract must be made by the City Council by ordinance or resolution. B. Establishment of Internal Controls The City Treasurer will establish a system of intemal controls over the Investment activities of the City and document such controls in the Investment Procedures Manual. These internal controls shall be approved by the Director of Financial Services. C. Prudent Investment Management Investments shall be made with the same judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Prudent investment is to be judged by the Investment Portfolio as a whole, not on individual Investments. If liquidation is necessary due to a pool losing its MA rating or for other reasons, liquidation will be done in a prudent manner consistent with the investment objectives of this policy and as provided in 2256.021 of the Government Code. Investment of monies shall be governed by the following investment objectives in order of priority: 1. preservation and safety of principal; 2. liquidity; and 3. yield. The designated Investment Officers shall perform their duties in accordance with the adopted Investment Policy. Investment Officers acting in good faith and in accordance with these policies and procedures shall be relieved of personal liability. The Investment Committee and Officers are indemnified as provided by City Ordinance attached and incorporated as Appendix C. D. Standards of Ethics The Investment Committee and City Treasurer will comply with the City's Code of Ethics Ordinance attached and incorporated as Appendix B which requires disclosure of financial interests by April of each year. The designated Investment Officers and all members of the Investment Committee shall adhere to the City's Ethics Ordinance. To the extent required by section 2256.0050) of the Government Code, the Investment Committee and City Treasurer shall make such filings as required by law. 12 —163— E. Training and Education Recognizing that the training and education of Investment Officers contributes to efficient and effective investment management, the City requires its Investment Officers to obtain appropriate professional training. Such training is currently required by, and shall be obtained in accordance with Section 2256.008 of the Government Code Public Funds Investment Act. The Investment Committee approves investment- training seminars presented by the following organizations: Government Finance Officers Association Government Finance Officers Association of Texas Government Treasurers Organization of Texas Municipal Treasurers Association Texas Municipal League UNT Center for Public Management If the Investment Officer desires to attend an investment - training seminar presented by another organization for training credit, such seminar must be approved by the Director of Financial Services or his designee. VIII. COMPETITIVE SOLICITATION Except for repurchase agreements, guaranteed investment contracts, and public funds investment pools, any new issue investment will be purchased through an Authorized Selling Group or directly through the issuer. Any Institution authorized to participate in the City's investment program must meet Collateral pledge requirements outlined in Section IV.D. of these guidelines and must submit annual financial reports. IX. AUTHORIZED INSTITUTIONS All institutions who seek to sell an authorized Investment to the City are required to complete the questionnaire approved by the Investment Committee and furnish supporting documentation required by the Investment Committee. Securities shall only be purchased through those Institutions approved by the Investment Committee. A. Investments shall only be made with those Institutions who have executed a written instrument in a form acceptable to the City, executed by a Qualified Representative of the Institution, and substantially to the effect that the Institution has: 1. Received, thoroughly reviewed and acknowledged, in writing, receipt and understanding of the City's Investment Policy. 2. Acknowledged that the Institution has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Institution and the City that are not authorized by the City's Investment Policy. B. Investments shall only be made with those Institutions who have met the qualifications and standards established by the City's Investment Committee and set forth in the Investment Procedures Manual. 13 —164— C. The Investment Committee shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. D. The City Treasurer will request the Investment Committee to authorize deletion of Institutions for: 1. Slow response time; 2. Less than competitive pricing; 3. Little or no information on technical or fundamental expectations based on economic indicators; 4. Failed transactions or continuing operational difficulties; or 5. Unwillingness to continue to abide by the provisions listed in IX.A.; or 6. Other reasons as approved by the Investment Committee. X. PLEDGED COLLATERAL The market value of pledged Collateral must be at least 102% of the principal plus accrued interest for Excess Cash Balances, certificates of deposit, guaranteed investment contracts, and repurchase agreements. Evidence of proper collateralization in the form of original safekeeping receipts held at a Third Party Safekeeping Institution not affiliated with the Institution pledging the Collateral will be approved by the City Treasurer and will be maintained in the City's Treasurer Office. An authorized City Representative (See Appendix A) will approve and release all pledged collateral. A. Collateral Substitution Collateralized Investments and certificates of deposit often require substitution of Collateral. Any Institution must contact the Investment Officers for approval and settlement. The substituted collateral's value will be calculated and substitution approved if its value is equal to or greater than the required collateral value. Substitution is allowable for all transactions, but should be limited, to minimize the City's potential administrative problems. B. Collateral Reductions Should the collateral's market value exceed the required amount, any Institution may request approval from the Investment Officer to reduce collateral. Collateral reductions may be permitted only if the City's records indicate that the collateral's market value exceeds the required amount. C. Prohibited Securities Investment securities described in Section 2256.009(b), Government Code, shall not be eligible for use as collateral of City monies governed by this Policy. XI. SAFEKEEPING A. Third Party Safekeeping Agreement The City shall contract with a Bank or Banks for the safekeeping of Securities either owned by the City as a part of its Investment Portfolio or held by the City or a Third Party Safekeeping Institution as Collateral to secure certificates of 14 —165— deposit, repurchase agreements, guaranteed investment contracts or Excess Cash Balances. B. Safekeeping of Certificate of Deposit Collateral All Collateral securing bank and savings and loan deposits must be held by a Third Party Safekeeping Institution approved by the City, or Collateral may be held at the Federal Reserve Bank. C. Safekeeping of Repurchase Agreement Collateral Repurchase Agreement Collateral is restricted to U.S. Treasuries and must be delivered to a Third -Party Safekeeping Institution with which the City has (subject to the limitation described in Section X.C. above) established a third -party safekeeping agreement. D. Guaranteed Investment Agreement Collateral Guaranteed investment contract collateral is restricted to U.S. Treasuries and Agencies (subject to the limitation described in Section X.C. above) and must be delivered to a Third -Party Safekeeping Institution with which a third -party safekeeping agreement has been established pursuant to the terms of the guaranteed investment contract. XII. WIRE AND ELECTRONIC SERVICES Wire and electronic services are to be provided as referenced in the City's Depository Services agreement, portions of which are attached and incorporated as Appendix D. The City requests applications for depository services every three to five years. XIII. INFORMATION REPORTING /EVALUATION The City Treasurer and Investment Analyst are hereby designated as the Investment Officers and are responsible for the daily operation of the Investment program and will report to the Investment Committee on a quarterly basis. A. Investment Committee consists of: City Manager Assistant City Managers Director of Financial Services or if vacant, Deputy Director of Financial Services City Attorney Director of Management and Budget or if vacant, Assistant Director of Management and Budget The Investment Committee will be responsible for monitoring, reviewing, and making recommendations regarding the City's Investment program to the City Council. Reports will be provided to the City Council by the Investment Officers no less than quarterly, as required by the Public Funds Investment Act. B. Internal Reporting /Evaluation The following reports are to be submitted on a: 15 -166- 1. Weekly basis to the Director of Financial Services or Designee (Excluding Investment Officers): a. Cash Position by Bank Account b. Collateral Position c. Investment Portfolio (Including Purchases /Maturities) 2. Quarterly Reporting to Investment Committee and City Council. Executive Summary Schedules a. Combined Investment Portfolio Report of Market versus Book Values b. Combined Portfolio Composition c. Individual Portfolio Composition d. Cash and Equivalents, U.S Treasuries and Investments Greater than One Year e. Combined Summary of Investment Transactions f. Combined Investment Portfolio - Weighted Average Maturity 9. Investment Revenue h. Aggregate Activity per Broker and Analysis of Excess Collateral Coverage i• Comparison of Investment Retums to Benchmarks j. Investment Portfolio Report of Market versus Book Values and Weighted Average Maturity — Lake Texana Project k. Bond Funds by Issue I• Approved Institutional Brokers m. Economic and Interest Rate Forecast n. Glossary o. Compliance Statement p. Quarterly Investment Committee Meeting Minutes from Previous Meeting C. External Reporting/Evaluations On a quarterly basis, the City's main depository and all applicable Institutions providing certificates of deposit in excess of FDIC coverage will provide to the Investment Officer for review a copy of the balance sheet and income statement for the Call Report. All Institutions will provide annual audited financial statements. Any local government investment pools must provide reports and disclosure statements as required by the Public Funds Investment Act. D. Record Retention The City follows the guidelines of retaining records for five years from City's current fiscal year, as recommended in the Texas State Library Municipal Records Manual or may be authorized by the City's local records management guidelines. . 16 —167— XIV. BANKING SERVICES All depository services are provided in the City's main depository agreement. Other services such as credit cards, direct deposit of payroll or other services may be administered through separate agreements. To aggressively invest Excess Cash Balances, controlled disbursements accounts, zero balance accounts and other cash management tools may be employed. XV. GENERAL PROVISIONS A. Audits and Inspections. During regular business hours and as often as the Investment Officers deem necessary, the Institution providing certificates of deposit will make available for examination by the City Manager, his duly authorized agent, accountant, or legal representative, such records and data to assure the pledge of Collateral, availability of Collateral, and financial stability of the Institution. B. Compliance with Laws. Each Institution agrees to comply with all federal, state, and local laws, rules, regulations, and ordinances. The personnel or officers of such Institution shall be fully qualified and authorized under federal, state, and local law to perform the services set out under this Policy. Each Institution shall permit the Investment Officers to audit, examine, and make excerpts or transcripts from such records and to make audits of all contract, invoices, materials, and other data relating to applicable Investments. C. Performance Audits. The City's Annual External Financial Audit shall include a compliance audit of management controls on Investments and adherence to this Policy. If the City invests in other than money market mutual funds, investment pools or accounts offered by its depository in the form of certificates of deposit or money market accounts, the quarterly reports prepared by Investment Officers for the City Council must be formally reviewed at least annually by an independent auditor. The results of the review must be reported to the City Council by that auditor. D. Investment Policy Resolution. The resolution authorizing this Investment Policy is attached. 17 -168- APPENDIX A Texas Public Funds Investment Act Texas Government Code, Chapter 2256 Subchapter A -169- GOVERNMENT CODE CHAPTER 2256. PUBLIC FUNDS INVESTMENT SUBCHAPTER A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES Sec. 2256.001. SHORT TITLE. This chapter may be cited as the Public Funds Investment Act. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.002. DEFINITIONS. In this chapter: (1) "Bond proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes. (2) "Book value" means the original acquisition cost of an investment plus or minus the accrued amortization or accretion. (3) "Funds" means public funds in the custody of a state agency or local government that: (A) are not required by law to be deposited in the state treasury; and (8) the investing entity has authority to invest. (4) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code. (5) "Investing entity" and "entity" mean an entity subject to this chapter and described by Section 2256.003. (6) "Investment pool" means an entity created under this code to invest public funds jointly on behalf of the entities that participate in the pool and whose investment objectives in order of priority are: (A) preservation and safety of principal; (B) liquidity; and (C) yield. (7) "Local government" means a municipality, a county, a school district, a district or authority created under Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution, a fresh water supply district, a hospital district, and any political subdivision, authority, public corporation, body politic, or instrumentality of the State of Texas, and any nonprofit corporation acting on behalf of any of those entities. (8) "Market value" means the current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date. (9) "Pooled fund group" means an internally created fund of an investing entity in which one or more institutional accounts of the investing entity are invested. (10) "Qualified representative" means a person who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: (A) for a business organization doing business that is regulated by or registered with a securities commission; a person who is registered under the rules of the National Association of Securities Dealers; (8) fox a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee fox the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution;. (C) for an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument on behalf of the investment pool; or (D) for an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b -1 et seq.) or, if not subject to registration under that Act, registered with the State Securities Board, a person who is an officer or principal of the investment management firm. (11) "School district" means a public school district. (12) "Separately invested asset" means an account or fund of a state agency or local government that is not invested in a pooled fund group. (13) "State agency" means an office, department, commission, board, or other agency that is part of any branch of state government, an institution of higher education, and any nonprofit corporation acting on behalf of any of those entities. 1 -170- Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, Sec. 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1454, Sec. 1, eff. Sept. 1, 1999. Sec. 2256.003. AUTHORITY TO INVEST FUNDS; ENTITIES SUBJECT TO THIS CHAPTER. (a) Each governing body of the following entities may purchase, sell, and invest its funds and funds under its control in investments authorized under this subchapter in compliance with investment policies approved by the governing body and according to the standard of care prescribed by Section 2256.006: (1) a local government; (2) a state agency; (3) a nonprofit corporation acting on behalf of a local government or a state agency; or (4) an investment pool acting on behalf of two or more local governments, state agencies, or a combination of those entities. (b) In the exercise of its powers under Subsection (a), the governing body of an investing entity may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b -1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other funds under its control. A contract made under authority of this subsection may not be for a term longer than two years. A renewal or extension of the contract must be made by the governing body of the investing entity by order, ordinance, or resolution. (c) This chapter does not prohibit an investing entity or investment officer from using the entity's employees or the services of a contractor of the entity to aid the investment officer in the execution of the officer's duties under this chapter. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1454, Sec. 2, eff. Sept. 1, 1999. Sec. 2256.004. APPLICABILITY. (a) This subchapter does not apply to: (1) a public retirement system as defined by Section 802.001; (2) state funds invested as authorized by Section 404.024; (3) an institution of higher education having total endowments of at least $95 million in book value on May 1, 1995; (4) funds invested by the Veterans' Land Board as authorized by Chapter 161, 162, or 164, Natural Resources Code; (5) registry funds deposited with the county or district clerk under Chapter 117, Local Government Code; or (6) a deferred compensation plan that qualifies under either Section 401(k) or 457 of the Internal Revenue Code of 1986 (26 U.S.C. Section 1 et seq.), as amended. (b) This subchapter does not apply to an investment donated to an investing entity for a particular purpose or under terms of use specified by the donor. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 505, Sec. 24, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1421, Sec. 2, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 8.21, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1454, Sec. 3, eff. Sept. 1, 1999. Sec. 2256.005. INVESTMENT POLICIES; STRATEGIES; INVESTMENT OFFICER. (a) The INVESTMENn rnin investing entity shall adopt by rule, orderg body of an , orinance, or resolution, as appropriate, a written investment Policy regarding the investment of its funds and funds under its control. (b) The investment policies must: (1) be written; (2) primarily emphasize safety of principal and liquidity; (3) address investment diversification, yield, and maturity and the quality and capability of investment management; and (4) include: (A) a list of the types of authorized investments in which the investing entity's funds may be invested; (B) the maximum allowable stated maturity of any individual investment owned by the entity; dollar- weighted average maturity allowed9based on ththe maximum stated 2 -171- maturity date for the portfolio; (D) methods to monitor the market price of investments acquired with public funds; and (E) a requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis. (c) The investment policies may provide that bids for certificates of deposit be solicited: (1) orally; (2) in writing; (3) electronically; or (4) in any combination of those methods. (d) As an integral part of an investment policy, the governing body shall adopt a separate written investment strategy for each of the funds or group of funds under its control. Each investment strategy must describe the investment objectives for the particular fund using the following priorities in order of importance: (1) understanding of the suitability of the investment to the financial requirements of the entity; (2) preservation and safety of principal; (3) liquidity; (4) marketability of the investment if the need arises to liquidate the investment before maturity; (5) diversification of the investment portfolio; and (6) yield. (e) The governing body of an investing entity shall review its investment policy and investment strategies not less than annually. The governing body shall adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and investment strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies. (f) Each investing entity shall designate, by rule, order, ordinance, or resolution, as appropriate, one or more officers or employees of the state agency, local government, or investment pool as investment officer to be responsible for the investment of its funds consistent with the investment policy adopted by the entity. If the governing body of an investing entity has contracted with another investing entity to invest its funds, the investment officer of the other investing entity is considered to be the investment officer of the first investing entity for purposes of this chapter. Authority granted to a person to invest an entity's funds is effective until rescinded by the investing entity, until the expiration of the officer's term or the termination of the person's employment by the investing entity, or if an investment management firm, until the expiration of the contract with the investing entity. In the administration of the duties of an investment officer, the person designated as investment officer shall exercise the judgment and care, under prevailing circumstances, that a prudent person would exercise in the management of the person's own affairs, but the governing body of the investing entity retains ultimate responsibility as fiduciaries of the assets of the entity. Unless authorized by law, ape/son may not deposit, withdraw, transfer, ox manage in any other manner the funds of the investing entity. (g) Subsection (f) does not apply to a state agency, local government, or investment pool for which an officer of the entity is assigned by law the function of investing its funds. Text of subsec. (h) as amended by Acts 1997, 75th Leg. , ch. 685, Sec. 1 (h) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be an investment officer for the commission under Subsection (f) if the officer or employee is an investment officer designated under Subsection (f) for another local government. Text of subsec. (h) as amended by Acts 1997, 75th Leg., ch. 1421, Sec. 3 (h) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be designated as an investment officer under Subsection (f) for any investing entity other than for that commission. (i) An investment officer of an entity who has a personal business relationship with a business organization offering to engage in an investment transaction with the entity shall file a 3 -172- statement disclosing that personal business interest. An investment officer who is related within the second degree by affinity or consanguinity, as determined under Chapter 573, to an individual seeking to sell an investment to the investment officer's entity shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the governing body of the entity. For purposes of this subsection, an investment officer has a personal business relationship with a business organization if: (1) the investment officer owns 10 percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; (2) funds received by the investment officer from the business organization exceed 10 percent of the investment officer's gross income for the previous year; or (3) the investment officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the investment officer. (j) The governing body of an investing entity may specify in its investment policy that any investment authorized by this chapter is not suitable. (k) A written copy of the investment policy shall be presented to any person offering to engage in an investment transaction with an investing entity or to an investment management firm under contract with an investing entity to invest or manage the entity's investment portfolio. For purposes of this subsection, a business organization includes investment pools and an investment management firm under contract with an investing entity to invest or manage the entity's investment portfolio. Nothing in this subsection relieves the investing entity of the responsibility for monitoring the investments made by the investing entity to determine that they are in compliance with the investment policy. The qualified representative of the business organization offering to engage in an investment transaction with an investing entity shall execute a written instrument in a form acceptable to the investing entity and the business organization substantially to the effect that the business organization has: (1) received and reviewed the investment policy of the entity; and (2) acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective investment standards. (1) The investment officer of an entity may not acquire or otherwise obtain any authorized investment described. in the investment policy of the investing entity from a person who has not delivered to the entity the instrument required by Subsection (k). (m)- An investing entity other than a state agency, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the entity's established investment policies. (n) Except as provided by Subsection (o), at least once every two years a state agency shall arrange for a compliance audit of management controls on investments and adherence to the agency's established investment policies. The compliance audit shall be performed by the agency's internal auditor or by a private auditor employed in the manner provided by Section 321.020. Not later than January 1 of each even - numbered year a state agency shall report the results of the most recent audit performed under this subsection to the state auditor. Subject to a risk assessment and to the legislative audit committee's approval of including a review by the state auditor in the audit plan under Section 321.013, the state auditor may review information provided under this section. If review by the state auditor is approved by the legislative audit committee, the state auditor may, based on its review, require a state agency to also report to the state auditor other information the state auditor determines necessary to assess compliance with laws and policies applicable to state agency investments. A report under this subsection shall be prepared in a manner the state auditor prescribes. 4 -173- (o) The .audit requirements of Subsection (n) do not apply to assets of a state agency that are invested by the comptroller under Section 404.024. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 685, Sec. 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1421, Sec. 3, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch.,1454, Sec. 4, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 785, Sec. 41, eff. Sept. 1, 2003. Sec. 2256.006. STANDARD OF CARE. (a) Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Investment of funds shall be governed by the following investment objectives, in order of priority: (1) preservation and safety of principal; (2) liquidity; and (3) yield. (b) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: (1) the investment of all funds, or funds under the entity's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and (2) whether the investment decision was consistent with the written investment policy of the entity. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.007. INVESTMENT TRAINING; STATE AGENCY BOARD MEMBERS AND OFFICERS. (a) Each member of the governing board of a state agency and its investment officer shall attend at least one training session relating to the person's responsibilities under this chapter within six months after taking office or assuming duties. (b) The Texas Higher Education Coordinating Board shall provide the training under this section. (c) Training under this section must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with this chapter. (d) An investment officer shall attend a training session not less than once in a two -year period and may receive training from any independent source approved by the governing body of the state agency. The investment officer shall prepare a report on this subchapter and deliver the report to the governing body of the state agency not later than the 180th day after the last day of each regular session of the legislature. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 73, Sec. 1, eff. May 9, 1997; Acts 1997, 75th Leg., ch. 1421, Sec. 4, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1454, Sec. 5, eff. Sept. 1, 1999. Sec. 2256.008. INVESTMENT TRAINING; LOCAL GOVERNMENTS. (a) Except as provided by Subsections (b) and (e), the treasurer, the chief financial officer if the treasurer is not the chief financial officer, and the investment officer of a local government shall: (1) attend at least one training session from an independent source approved by the governing body of the local government or a designated investment committee advising the investment officer as provided for in the investment policy of the local government and containing at least 10 hours of instruction relating to the treasurer's or officer's responsibilities under this subchapter within 12 months after taking office or assuming duties; and (2) except as provided by Subsections (b) and (e), attend an investment training session not less than once in a two -year period and receive not less than 10 hours of instruction relating to investment responsibilities under this subchapter from an independent source approved by the governing body of the local government or a designated investment committee advising the investment officer as provided for in the investment policy of the local government. (b) An investing entity created under authority of Section 52(b), Article III, or Section 59, Article XVI, Texas Constitution, 5 -174- that has contracted with an investment management firm under Section 2256.003(b) and has fewer than five full -time employees or an investing entity that has contracted with another investing entity to invest the entity's funds may satisfy the training requirement provided by Subsection (a)(2) by having an officer of the governing body attend four hours of appropriate instruction in a two -year period. The treasurer or chief financial officer of an investing entity created under authority of Section 52(b), Article III, or Section 59, Article XVI, Texas Constitution, and that has fewer than five full -time employees is not required to attend training required by this section unless the person is also the investment officer of the entity. (c) Training under this section must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with this chapter. (d) Not later than December 31 each year, each individual, association, business, organization, governmental entity, or other person that provides training under this section shall report to the comptroller a list of the governmental entities for which the person provided required training under this section during that calendar year. An individual's reporting requirements under this subsection are satisfied by a report of the individual's employer or the sponsoring ox organizing entity of a training program or seminar. (e) This section does not apply to a district governed by Chapter 36 or 49, Water Code. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, Sec. 5, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1454, Sec. 6, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 69, Sec. 4, eff. May 14, 2001. Sec. 2256.009. AUTHORIZED INVESTMENTS: OBLIGATIONS OF, OR GUARANTEED BY GOVERNMENTAL ENTITIES. (a) Except as provided by Subsection (b), the following are authorized investments under this subchapter: (1) obligations, including letters of credit, of the United States or its agencies and instrumentalities; (2) direct obligations of this state or its agencies and instrumentalities; (3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; (4) other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities; (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a- nationally recognized investment rating firm not less than A or its equivalent; and (6) bonds issued, assumed, or guaranteed by the State of Israel. (b) The following are not authorized investments under this section: (1) obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage- backed security collateral and pays no principal; (2) obligations whose payment represents the principal stream of cash flow from the underlying mortgage- backed security collateral and bears no interest; (3) collateralized mortgage obligations that have a stated final maturity date of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1454, Sec. 7, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 558, Sec. 1, eff. Sept. 1, 2001. Sec. 2256.010. AUTHORIZED INVESTMENTS: CERTIFICATES OF DEPOSIT AND SHARE CERTIFICATES. (a) A certificate of deposit or share certificate is an authorized investment under this subchapter if the certificate is issued by a depository institution that has its main office or a branch office in this state and is: (1) guaranteed or insured by the Federal Deposit 6 -175- Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; (2) secured by obligations that are described by Section 2256.009(a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by Section 2256.009(b); or (3) secured in any other manner and amount provided by law for deposits of the investing entity. (b) In addition to the authority to invest funds in certificates of deposit under Subsection (a), an investment in certificates of deposit made in accordance with the following conditions is an authorized investment under this subchapter: (1) the funds are invested by an investing entity through a depository institution that has its main office or a branch office in this state and that is selected by the investing entity; (2) the depository institution selected by the investing entity under Subdivision (1) arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the investing entity; (3) the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; (4) the depository institution selected by the investing entity under Subdivision (1) acts as custodian for the investing entity with respect to the certificates of deposit issued for the account of the investing entity; and (5) at the same time that -the funds are deposited and the certificates of deposit are issued for the account of the investing entity, the depository institution selected by the investing entity under Subdivision (1) receives an amount of deposits from customers of other federally insured depository institutions, wherever located, that is equal to or greater than the amount of the funds invested by the investing entity through the depository institution selected under Subdivision (1). Amended by Acts 1995, 74th Leg., ch. 32, Sec. 1, eff. April 28, 1995; Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, Sec. 6, eff. Sept. 1, 1997. Amended by: Acts 2005, 79th Leg., Ch. 128, Sec. 1, eff. September 1, 2005. Sec. 2256.011. AUTHORIZED INVESTMENTS: REPURCHASE AGREEMENTS. (a) A fully collateralized repurchase agreement is an authorized investment under this subchapter if the repurchase agreement: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a)(1); and (3) requires the securities being' purchased by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and (4) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state. (b) In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described by Section 2256.009(a)(1), at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. (c) Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. (d) Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.0115. AUTHORIZED INVESTMENTS: SECURITIES 7 -176- LENDING PROGRAM. (a) A securities lending program is an authorized investment under this subchapter if it meets the conditions provided by this section. (b) To qualify as an authorized investment under this subchapter: (1) the value of securities loaned under the program must be not less than 100 percent collateralized, including accrued income; (2) a loan made under the program must allow for termination at any time; (3) a loan made under the program must be secured by: (A) pledged securities described by Section 2256.009; (B) pledged irrevocable letters of credit issued by a bank that is: (i) organized and existing under the laws of the United States or any other state; and (ii) continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent; or (C) cash invested in accordance with Section: (i) 2256.009; (ii) 2256.013; (iii) 2256.014; or (iv) 2256.016; (4) the terms of a loan made under the program must require that the securities being held as collateral be: (A) pledged to the investing entity; (B) held in the investing entity's name; and (C) deposited at the time the investment is made with the entity or with a third party selected by ox approved by the investing entity; (5) a loan made under the program must be placed through: (A) a primary government securities dealer, as defined by 5 C.F.R. Section 6801.102(f), as that regulation existed on September 1, 2003; or (B) a financial institution doing business in this state; and (6) an agreement to lend securities that is executed under this section must have a term of one year or less. Added by Acts 2003, 78th Leg. , ch. 1227, Sec. 1, eff. Sept. 1, 2003. Sec. 2256.012. AUTHORIZED INVESTMENTS: BANKER'S ACCEPTANCES. A bankers' acceptance is an authorized investment under this subchapter if the bankers' acceptance: (1) has a stated maturity of 270 days or fewer from the date of its issuance; (2) will be, in accordance with its terms, liquidated in full at maturity; (3) is eligible for collateral for borrowing from a Federal Reserve Bank; and (4) is accepted by a bank organized and existing under the laws of the United States or any state, if the short -term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A -1 or P -1 or an equivalent rating by at least one nationally recognized credit rating agency. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.013. AUTHORIZED INVESTMENTS: COMMERCIAL PAPER. Commercial paper is an authorized investment under this subchapter if the commercial paper: (1) has a stated maturity of 270 days or fewer from the date of its issuance; and (2) is rated not less than A -1 or P -1 or an equivalent rating by at least: (A) two nationally, recognized credit rating agencies; or (B) one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.014. AUTHORIZED INVESTMENTS: MUTUAL FUNDS. 8 -177- (a) A no -load money market mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is registered with and regulated by the Securities and Exchange Commission; (2) provides the investing entity with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a -1 et seq.); (3) has a dollar - weighted average stated maturity of 90 days or fewer; and (4) includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. (b) In addition to a no -load money market mutual fund permitted as an authorized investment in Subsection (a), a no -load mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is registered with the Securities and Exchange Commission; (2) has an average weighted maturity of less than two years; (3) is invested exclusively in obligations approved by this subchapter; (4) is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent; and (5) conforms to the requirements set forth in Sections 2256.016(b) and (c) relating to the eligibility of investment pools to receive and invest funds of investing entities. (c) An entity is not authorized by this section to: (1) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in mutual funds described in Subsection (b); (2) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection (b); or (3) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, Sec. 7, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1454, Sec. 8, eff. Sept. 1, 1999. Sec. 2256.015. AUTHORIZED INVESTMENTS: GUARANTEED INVESTMENT CONTRACTS. (a) A guaranteed investment contract is an authorized. investment for bond proceeds under this subchapter if the guaranteed investment contract: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a).(1), excluding those obligations described by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract; and (3) is pledged to the entity and deposited with the entity or with a third party selected and approved by the entity. (b) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under this subchapter in a guaranteed investment contract with a term of longer than five years from the date of issuance of the bonds. (c) To be eligible as an authorized investment: (1) the governing body of the entity must specifically authorize guaranteed investment contracts as an eligible investment in the order, ordinance, or resolution authorizing the issuance of bonds; (2) the entity must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received; (3) the entity must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received; (4) the pr -ice of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and (5) the provider must certify the administrative costs 9 -178- reasonably expected to be paid to third parties in connection with the guaranteed investment contract. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, Sec. 8, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1454, Sec. 9, 10, eff. Sept. 1, 1999. Sec. 2256.016. AUTHORIZED INVESTMENTS: INVESTMENT POOLS. (a) An entity may invest its funds and funds under its control through an eligible investment pool if the governing body of the entity by rule, order, ordinance, or resolution, as appropriate, authorizes investment in the particular pool. An investment pool shall invest the funds it receives from entities in authorized investments permitted by this subchapter. (b) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: to be invested(1) the types of investments in which money is allowed (2) the maximum average dollar- weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the pool; (11) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, average dollar- weighted maturities, and expense ratios. (c) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity: (1) investment transaction confirmations; and (2) a monthly report that contains, at a minimum, the following information: (A) the types and percentage breakdown of securities in which the pool is invested; (B) the current average dollar- weighted maturity, based on the stated maturity date, of the pool; (C) the current percentage of the pool's portfolio in investments that have stated maturities of more than one year; (D) the book value versus the market value of the pool's portfolio, using amortized cost valuation; (E) the size of the pool; (F) the number of participants in the pool; (G) the custodian bank that is safekeeping the assets of the pool; (H) a listing of daily transaction activity of the entity participating in the pool; (I) the yield and expense ratio of the pool; (J) the portfolio managers of the pool; and (K) any changes or addenda to the offering circular. (d) An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. (e) In this section, "yield" shall be calculated in accordance with regulations governing the registration of open -end 10 -179- management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the federal Securities and Exchange Commission. (f) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool created to function as a money market mutual fund must mark its portfolio to market daily, and, to the extent reasonably possible, stabilize at a $1 net asset value. • If the ratio of the market value of the portfolio divided by the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the ratio between 0.995 and 1.005. (g) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool must have an advisory board composed: (1) equally of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for a public funds investment pool created under Chapter 791 and managed by a state agency; or (2) of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for other investment pools. (h) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must be continuously rated nd lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, Sec. 9, eff. Sept. 1, 1997. Sec. 2256.017. EXISTING INVESTMENTS. An entity is not required to liquidate investments that were authorized investments at the time of purchase. Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.46(a), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1421, Sec. 10, eff. Sept. 1, 1997. Sec. 2256.019. RATING OF CERTAIN INVESTMENT POOLS. A public funds investment pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service or no lower than investment grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1421, Sec. 11, eff. Sept. 1, 1997. Sec. 2256.020. AUTHORIZED INVESTMENTS: INSTITUTIONS OF HIGHER EDUCATION. In addition to the authorized investments permitted by this subchapter, an institution of higher education may purchase, sell, and invest its funds and funds under its control in the following: (1) cash management and fixed income funds sponsored by organizations exempt from federal income taxation under Section 501(f), Internal Revenue Code of 1986 (26 U.S.C. Section 501(f)); (2) negotiable certificates of deposit issued by a bank that has a certificate of deposit rating of at least 1 or the equivalent by a nationally recognized credit rating agency or that is associated with a holding company having a commercial paper rating of at least A -1, P -1, or the equivalent by a nationally recognized credit rating agency; and (3) corporate bonds, debentures, or similar debt obligations rated by a nationally recognized investment rating firm in one of the two highest long -term rating categories, without regard to gradations within those categories. Added by Acts 1995, 74th Leg. , ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.0201. AUTHORIZED INVESTMENTS; MUNICIPAL UTILITY. (a) A municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may enter into a hedging contract and related security and insurance agreements in relation to fuel oil, natural gas, coal, nuclear fuel, and electric energy to protect against loss due to price fluctuations. A hedging transaction must comply with the regulations of the Commodity Futures Trading Commission and the Securities and Exchange Commission. It there is a conflict between the municipal charter of the municipality and this chapter, this chapter prevails. (b) A payment by a municipally owned electric or gas utility 11 -180- under a hedging contract or related agreement in relation to fuel supplies or fuel reserves is a fuel expense, and the utility may credit any amounts it receives under the contract or agreement against fuel expenses. (c) The governing body of a municipally owned electric or gas utility or the body vested with power to manage and operate the municipally owned electric or gas utility may set policy regarding hedging transactions. (d) In this section, "hedging" means the buying and selling of fuel oil, natural gas, coal, nuclear fuel, and electric energy futures or options or similar contracts on those commodities and related transportation costs as a protection against loss due to price fluctuation. Added by Acts 1999, 76th Leg., ch. 405, Sec. 48, eff. Sept. 1, 1999. Amended by: Acts 2007, 80th Leg., R.S., Ch. 7, Sec. 1, eff. April 13, 2007. Sec. 2256.0205. AUTHORIZED INVESTMENTS; DECOMMISSIONING TRUST. (a) In this section: (1) "Decommissioning trust" means a trust created to provide the Nuclear Regulatory Commission assurance that funds will be available for decommissioning purposes as required under 10 C.F.R. Part 50 or other similar regulation. (2) "Funds" includes any money held in a decommissioning trust regardless of whether the money is considered to be public funds under this subchapter. (b) In addition to other investments authorized under this subchapter, a municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may invest funds held in a decommissioning trust in any investment authorized by Subtitle B, Title 9, Property Code. Added by Acts 2005, 79th Leg., Ch. 121, Sec. 1, eff. September 1, 2005. Sec. 2256.021. EFFECT OF LOSS OF REQUIRED RATING. An investment that requires -a minimum rating under this subchapter does not qualify as an authorized investment during the period the investment does not have the minimum rating. An entity shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.022. EXPANSION OF INVESTMENT AUTHORITY. Expansion of investment authority granted by this chapter shall require a risk assessment by the state auditor or performed at the direction of the state auditor, subject to the legislative audit committee's approval of including the review in the audit plan under Section 321.013. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 785, Sec. 42, eff. Sept. 1, 2003. Sec. 2256.023. INTERNAL MANAGEMENT REPORTS. - (a) Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report of investment transactions for all funds covered by this chapter for the preceding reporting period. (b) The report must: (1) describe in detail the investment position of the entity on the date of the report; (2) be prepared jointly by all investment officers of the entity; (3) be signed by each investment officer of the entity; (4) contain a summary statement, prepared in compliance with generally accepted accounting principles, of each pooled fund group that states the: (A) beginning market value for the reporting period; (B) additions and changes to the market value during the period; (C) ending market value for the period; and (D) fully accrued interest for the reporting period; (5) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested; 12 -181- (6) state the maturity date of each separately invested asset that has a maturity date; (7) state the account or fund or pooled group fund in the state agency or local government for which each individual investment was acquired; and (8) state the compliance of the investment portfolio of the state agency or local government as it relates to: (A) the investment strategy expressed in the agency's or local government's investment policy; and (B) relevant provisions of this chapter. (c) The report shall be presented not less than quarterly to the governing body and the chief executive officer of the entity within a reasonable time after the end of the period. (d) If an entity invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports prepared by the investment officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the governing body by that auditor. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1421,•Sec. 12, eff. Sept. 1, 1997. Sec. 2256.024. SUBCHAPTER CUMULATIVE. (a) The authority granted by this subchapter is in addition to that granted by other law. Except as provided by Subsection (b), this subchapter does not: (1) prohibit an investment specifically authorized by other law; or (2) authorize an investment specifically prohibited by other law. (b) Except with respect to those investing entities described in Subsection (c), a security described in Section 2256.009(b) is not an authorized investment for a state agency, a local government, or another investing entity, notwithstanding any other provision of this chapter or other law to the contrary. (c) Mortgage pass - through certificates and individual mortgage loans that may constitute an investment described in Section 2256.009(b) are authorized investments with respect to the housing bond programs operated by: (1) the Texas Department of Housing and Community Affairs or a nonprofit corporation created to act on its behalf; (2) an entity created under Chapter 392, Local Government Code; or (3) an entity created under Chapter 394, Local Government Code. Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.025. SELECTION OF AUTHORIZED BROKERS. The governing body of an entity subject to this subchapter or the designated investment committee of the entity shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the entity. Added by Acts 1997, 75th Leg., ch. 1421, Sec. 13, eff. Sept. 1, 1997. Sec. 2256.026. STATUTORY COMPLIANCE. All investments made by entities must comply with this subchapter and all federal, state, and local statutes, rules, or regulations. Added by Acts 1997, 75th Leg., ch. 1421, Sec. 13, eff. Sept. 1, 1997. SUBCHAPTER B. MISCELLANEOUS PROVISIONS Sec. 2256.051. ELECTRONIC FUNDS TRANSFER. Any local government may use electronic means to transfer or invest all funds collected or controlled by the local government. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.052. PRIVATE AUDITOR. Notwithstanding any other law, a state agency shall employ a private auditor if authorized by the legislative audit committee either on the committee's initiative or on request of the governing body of the agency. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Sec. 2256.053. PAYMENT FOR SECURITIES PURCHASED BY STATE. The comptroller or the disbursing officer of an agency that has the power to invest assets directly may pay for authorized securities 13 -182- purchased from or through a member in good standing of the National Association of Securities Dealers or from or through a national or state bank on receiving an invoice from the seller of the securities showing that the securities have been purchased by the board or agency and that the amount to be paid fox the securities is just, due, and unpaid. A purchase of securities may not be made at a price that exceeds the existing market value of the securities. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1423, Sec. 8.67, eff. Sept. 1, 1997. Sec. 2256.054. DELIVERY OF SECURITIES PURCHASED BY STATE. A security purchased under this chapter may be delivered to the comptroller, a bank, or the board ox agency investing its funds. The delivery shall be made under normal and recognized practices in the securities and banking industries, including the book entry procedure of the Federal Reserve Bank. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1423, Sec. 8.68, eff. Sept. 1, 1997. Sec. 2256.055. DEPOSIT OF SECURITIES PURCHASED BY STATE. At the direction of the comptroller or the agency, a security purchased under this chapter may be deposited in trust with a bank or federal reserve bank or branch designated by the comptroller, whether in or outside the state. The deposit shall be held in the entity's name as evidenced by a trust receipt of the bank with which the securities are deposited. Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1423, Sec. 8.69, eff. Sept. 1, 1997. 14 -183- APPENDIX B Article V Code of Ethics -184- ARTICLE V. CODE OF ETHICS DIVISION 1. RULES OF CONDUCT Sec. 2-310. Preamble. The purpose of this Code of Ethics is to promote public trust by establishing rules of conduct for city council members, board members, and employees; by providing a fair process for receiving and adjudicating complaints; and by requiring periodic financial disclosure. The rules of conduct form the basis for possible sanctions, and are therefore intended to clearly define proper conduct so that those who must comply may understand the rules and carry out their responsibilities consistently with the rules. It is recognized that situations with ethical implications will arise outside the prohibitions of the rules; in such situations, council members, board members, and employees are encouraged to keep in mind the ideal of the public trust and to conduct themselves in a manner to avoid the appearance of impropriety even where not compelled by the rules. (Ord. No. 23772, § 1, 9 -21 -1999) Sec. 2-311. Standards. The following rules of conduct apply to all council members, board members, and employees: Special privileges. (1) You shall not use your office for private advancement or gain or to secure special privileges or exemptions for yourself or others. (2) You shall not grant any special consideration, treatment or advantage to any person or group beyond that which is available to others generally. (3) (a) You shall not use city facilities, personnel, equipment or supplies for purposes unrelated to the interests of the city, except to the extent such are lawfully available to the public. Notwithstanding the foregoing sentence, Corpus Christi police officers, airport public safety officers and municipal court marshals may wear their city- issued uniforms, badges, and other uniform attire, may use their city- issued radios, and may carry their city- issued weapons, on approved off -duty law enforcement employment; and Corpus Christi fire fighters may wear their city- issued uniforms, badges, and other uniform attire, and use their city- issued radios on approved off -duty fire watch employment. (b) You may not spend or authorize the spending of public funds for political advertising. This prohibition does not apply to a communication that factually describes the purposes of a measure if the communication does not advocate passage or defeat of the measure. This paragraph shall be construed consistently with Texas Election Code Section 255.003. 1 —185— (4) Unless you are a council member, you shall not use the prestige of your position with the city on behalf of any political party or cause. Gifts: (5) You shall not accept or solicit any money, property, service or other thing of value by way of gift, favor, loan or otherwise that might reasonably tend to influence you in the discharge of your official duties or which you know or should have known was offered with the intent to influence or reward your official conduct. (6) In the event you receive any gift or loan of property or services on behalf of the city, you shall promptly deliver such gift or loan to the city manager for official acceptance and inventory of the city. Conflicts of interest: (7) In the event you or one of your relatives have an interest or any substantial interest in a contract or transaction involving the city which comes before you in the performance of your official duties, you shall make a written disclosure of your interest in the matter and abstain from any vote or decision and not participate in any discussion on the matter. (8) You shall not engage in any outside activities or employment which will conflict or be incompatible with the full and proper discharge of your official duties, impair your independent judgment in the performance of your duties, or reflect discredit upon the city. (9) You shall not represent any other private person, or group or interest in any action or proceeding against or adverse to the interest of the city or in any litigation in which the city is a party. (10) You shall not represent any other private person or group in any action or proceeding in the municipal courts of the city which was instituted by city officers or employees in the course of their official duties. (11) You shall not receive any fee or compensation for your official services from any source other than the city except as may be provided by law or authorized by the city council. Actions adverse to the city: (12) You shall not disclose information that could adversely affect the property or affairs of the city. —186— (13) You shall not knowingly perform qr refuse to perform any act in order to deliberately thwart the execution of federal, state or local laws or regulations or the achievement of any official city programs. (14) You shall not engage in any felony crime, misdemeanor involving moral turpitude, or other conduct that reflects discredit on the city. Provisions for council members: (15) As a council member, you shall not have a substantial interest in any contract with the city. (16) In order to preserve and promote independent advice and decisions from city boards and the integrity of the independent board process as a council member, you shall not speak before any city board, commission or committee except on behalf of your own financial interest; in which case, you shall publicly state the nature of your financial interest and that you are appearing only in your private capacity. (17) As a council member, you shall not give any orders to any employee except through the city manager as provided by the City Charter. (18) As a council member, you shall not participate in the process for the appointment of or the confirmation of the appointment of a member to a board, commission or committee of the city, or to the governing body of an independent entity all or part of whose members are appointed by the city council, after you are aware that an individual seeking, being promoted for, or being considered for the position: (1) is related to you within a degree described by Section 573.002, Texas Government Code; (2) is your employer; (3) is a director or officer of a business entity (as defined in Section 171.001, Texas Local Government Code) which is your employer; or (4) owns ten (10) per cent or more of the voting stock or shares of a business entity which is your employer. Provisions for board members: (19) As a board member, you shall not have a substantial interest in any contract with the city in which your board or commission, or the city department related thereto, has jurisdiction. (20) As a board member, you shall not represent or appear on behalf of the private interest of others before your board, commission or committee, the city council, or any board which has appellate jurisdiction over your board, commission or committee, " —187— concerning a matter which is within the subject matter jurisdiction of your board. (This rule does not prohibit you from appearing on behalf of your own financial interest even though others may have the same or a similar interest.) Provisions for employees: (21) As an employee you shall not have an interest in any contract with the city. (22) Unless previously recommended by the city manager, and approved by the ethics commission, as an employee, you shall not, within twelve (12) months after leaving city employment, represent any other person or organization in any formal or informal appearance with the city council or any other agency or employee of the city concerning a project for which you had responsibility as an employee. (23) As an employee, you shall not represent or appear on behalf of the private interest of others before the city council or any board, commission or committee of the city. (This rule does not prohibit you from appearing on behalf of your own financial interest even though others may have the same or a similar interest). (24) As an employee, you may not be employed by any business or individual who has business dealings with or for your department, including any work that is subject to review or inspection by your department, even if you do not personally review or inspect the work of the business or individual. Sec. 2-312. Definitions. The following definitions apply to the above rules of conduct: Board member: A member of any board, commission or committee of the city, including the board of any corporation created by the city. Employee: Any person employed by the city, whether under civil service or not, including part-time employees and employees of any corporation created by the city. Interest: Any direct or indirect pecuniary or material benefit in a contract or transaction other than: (1) An interest which is shared by and available to all other persons similarly situated; or (2) A remote or incidental interest which would not increase or decrease materially due to the action of the city or is less than two hundred dollars ($200.00) in value; or (3) An interest of a subcontractor which has no direct contractual relationship with the city, is receiving fair and reasonable compensation, and is not operating as a subterfuge to circumvent the code of ethics; or —188— (4) An interest in real property acquired by the city which could otherwise be accomplished only through eminent domain provided that the property must be acquired for a public purpose and just compensation must be paid under the Texas Constitution after obtaining an independent appraisal. Relative: Spouse, father, mother, brother, sister, son, daughter, spouse's children, father - in -law, mother -in -law, brother -in -law, sister -in -law, son -in -law, daughter -in -law and adoptive relationships being treated the same as natural relationships. Substantial interest: Any interest which has a value of five thousand dollars ($5,000.00) or more or represents ten (10) per cent or more of a person's gross income during the most recent calendar year. (Ord. No. 20781, § I, 9 -19 -1989) Sec. 2 -313. Effect of violation. A violation of these rules of conduct shall subject the council member, board member or employee to appropriate disciplinary proceedings, but such violation shall not render the action of the city voidable by the city unless the action would not have been approved without the vote of the person who violated the rules of conduct. (Ord. No. 20781, § 1, 9 -19 -1989) Sec. 2 -314. Exceptions to abstention requirement. The requirement that a council member or board member abstain from voting on a matter or participating in discussion as contained in rule 7 of the rules of conduct shall not apply in the following situations, provided that such person has complied with the requirements of written disclosure of the interest: (a) In the event a majority of the members of the council or the board, commission or committee have filed a written disclosure of a conflict of interest on the matter and would be required to abstain; or (b) On the final approval of the budget when the person has abstained from a separate vote taken on the particular budget item pertaining to the conflict of interest and action or that particular item has been resolved. (Ord. No. 20781, § 1, 9 -19 -1989) Cross references: Rules of conduct, § 2 -311. Sec. 2 -315. Freedom of expression. Nothing contained in the code of ethics shall abridge the right of any citizen, whether or not a council member, board member or employee, to exercise his or her right of expression under the U.S. or Texas Constitutions. . (Ord. No. 20781, § 1, 9 -19 -1989) 5 —1 8 9— Sec. 2 -316. Lobbyist registration. Subsection A. Persons required to register as lobbyists. (a) A person who engages in lobbying must register with the city secretary if, with respect to any client, the person engages in lobbying activities for compensation. (b) The following persons are not required to register under subsection (a): (1) Media outlets. A person who owns, publishes or is employed by: (A) a newspaper; (B) any other regularly published periodical; (C) a radio station; (D) a television station; (E) a wire service; or (F) any other bona fide news medium that in the ordinary course of business disseminates news, opinions, or paid advertisements that directly or indirectly oppose or promote municipal questions to seek to influence official action relating thereto, if the person does not engage in other activities that require registration under Part E. This subsection does not exempt the news media or a person whose relation to the news media is only incidental to a lobbying effort or if a position taken or advocated by a media outlet directly impacts, affects, or seeks to influence a municipal question in which the media outlet has a direct or indirect economic interest. (2) Mobilizing entity constituents. A person whose only lobbying activity is to encourage or solicit the members, employees, or owners (including shareholders) of an entity by whom the person is compensated to communicate directly with one or more city officials to influence municipal questions: This exception is intended to apply to neighborhood and other similar not - for - profit organizations. (3) Governmental entities. Governmental entities and their officers and employees, provided the communications relate solely to subjects of governmental interest concerning the respective governmental bodies and the city. (4) Unknown municipal questions. A person who does not know and has no reason to know that a municipal question is pending at the time of contact with a city official. (5) Dispute resolution. An attorney or other person whose contact with a city official is made solely as part of resolving a dispute with the city, provided that the contact is solely with city officials who do not vote on or have final authority over any municipal question involved and so long as such an attorney complies with Rule 4.02 of the Texas Disciplinary Rules of Professional Conduct, as amended. Subsection B. Definitions. The following words and phrases have the meaning ascribed to them in this section unless the context requires otherwise: (a) City official means the members of the city council, city manager, deputy and assistant city managers, city secretary, city attorney, assistant city attorneys, department heads, municipal court judges, and all members of any board, commission or committee of the city, including the board of any corporation created by the city. 6 —190— (b) Client means any person on whose behalf lobbying is conducted. In the case of a coalition or association that employs or retains other persons to conduct lobbying activities, the client is the coalition or association and not its individual members. (c) Compensation means money, service, facility or other thing of value or financial benefit that is received or is to be received in return for or in connection with services rendered or to be rendered. Compensation does not include a payment made to any individual regularly employed by a person if (1) the payment ordinarily would be made regardless of whether the individual engaged in lobbying activities and (2) lobbying activities are not part of the individual's regular responsibilities to the person making the payment. Compensation does not include the financial gain that a person may realize as a result of the determination of a municipal question, unless that gain is in the form of a contingent fee. (d) Lobby or lobbying means any oral or written communication (including an electronic communication) to a city official, made directly or indirectly by any person in an effort to influence or persuade an official to favor or oppose, recommend or not recommend, vote for or against, or take or refrain from taking action on any municipal question. The term lobby or lobbying does not include a communication: (1) merely requesting information or inquiring about the facts or status of any municipal question, matter, or procedure, and not attempting to influence a city official; (2) made by a public official or employee acting in his or her official capacity; (3) made by a representative of a media organization if the purpose of the communication is gathering and disseminating news and information to the public; (4) made in a speech, article, publication, or other material that is distributed and made available to the public, or through radio, television, cable television, or any other medium of mass communication; (5) made at a meeting open to the public under the Open Meetings Act; (6) made in the form of a written comment filed in the course of a public proceeding or any other communication that is made on the record in a public proceeding; (7) made in writing as a petition for official action and required to be a public record pursuant to established city procedures; (8) made in writing to provide information in response to an oral or written request by a city official for specific information; (9) the content of which is compelled by law; (10) made in response to a public notice soliciting communications from the public and directed to the official specifically designated in the notice to receive such communications; (11) made on behalf of an individual with regard to that individual's employment or benefits; (12) made by a fact witness or expert witness at an official proceeding; or (13) made by a person solely on behalf of that individual, his or her spouse, or his or her minor children. (e) Municipal question means a public policy issue of a discretionary nature pending or impending before city council or any board or commission, including but not limited to proposed action, or proposals for action, in the form of ordinances, resolutions, motions, recommendations, reports, regulations, policies, nominations, appointments, sanctions, and bids, including the adoption of specifications, awards, grants, or contracts. 7 —191— The term municipal question does not include the day -to -day application, administration, or execution of city programs and policies. Subsection C. Registration. (a) A registration form shall be completed and filed by a person required to register prior to the commencement of lobbying activity for a client. (b) A separate registration form must be filed for each client. (c) The registration shall be on a form prescribed by the city secretary and shall include, to the extent applicable: (1) the full name, phone number, permanent address, and nature of the business of: (A) the registrant; (B) the client; (C) any lobbying firm for which the registrant is an agent or employee with respect to the client; and (D) each employee or agent of the registrant who has acted or whom the registrant expects to act as a lobbyist on behalf of the client; (2) a statement of all municipal questions on which the registrant will lobby for the client. (d) A registrant shall file an amended registration if the information contained in the current registration changes or is incorrect. (e) A registrant may file a termination of registration when no longer required to register. (Ord. No. 23772, § 3, 9 -21 -1999) Secs. 2- 317 - -2 -319. Reserved. —192— APPENDIX D Corpus Christi Code of Ordinances Chapter 39 Personnel Article I In General Sec. 39 -16. Legal defense and indemnification of city officers and employees. (a) Definitions. For the purposes of this section the term "officer" shall include any elected or appointed official of the city; and the term "employee" shall include all employees of the city, whether under civil service or not, including firemen and policemen, and shall include authorized volunteers, working under a volunteer program approved by the city manager. (6) Indemnification. Any officer or employee who is liable for the payment of any claims or damages arising out of the course and scope of' employment shall be entitled to indemnification by the city provided that the acts or omissions resulting in such liability were done in good faith and without malicious or felonious intent. For the purposes of this section, the term "arising out of the course and scope of employment" shall not include any action, which occurs during a period of time in which the officer or employee is engaged in outside employment or is rendering contractual services to someone other than the city. Whether the acts were done in good faith, without malicious or felonious intent, and within the course and scope of employment shall be determined by the city, and such determination shall be final for the purposes of the representation and indemnity of this section; provided, however, that in the event such representation and indemnity have been denied by the city, if upon a trial on the merits the city determines that the officer or employee was acting in good faith, without malicious or felonious intent and within the scope of employment the indemnification hereunder shall be granted and reasonable legal expenses incurred in the defense of the claim reimbursed. The city shall not be liable for any settlement of any such claim or suit effected without consent, and the city reserves the right to assert any defense and make any settlement of any claim or suit that it deems expedient. (c) Representation in actions. The city shall have the right and duty to provide legal representation through the city attorney, or in its discretion through the selection of outside legal counsel, to any officer or employee sued in connection with any claim for damages or other civil action against such person arising out of the course and scope of employment, provided that such officer or employee is entitled to indemnification as set forth in this section. Such legal representation shall be provided at no cost to the officer or employee, and any officer or employee may have his or her own counsel assist in the defense at the sole expense of the officer or employee. The officer or employee shall cooperate fully with the city in preparation and presentation of the case, and the failure to cooperate shall waive such officer's or employee's right to representation and indemnity under this section. 1 —193— (d) City's defenses. Nothing in this section shall be construed as waiving the city's defense of governmental immunity to it or its employees or officers in any action brought against the city or such officer or employee. For any suit or claim arising under the Texas Tort Claims Act, the indemnity provided by this section shall be limited to the statutory limits applicable to the city provided in said Act, as amended. (e) Notice. The provisions of this section shall apply only where the city has been given notice of the action brought against any city officer or employee within ten (10) days of service of process upon the officer or employee. (f) Disciplinary actions. Nothing in this section shall prevent the city from taking disciplinary action against any officer or employee for conduct defended or indemnified by the city under this section, either before or after conclusion of the civil suit. (g) Suits in behalf of the city. Nothing in this section shall require the city to indemnify any officer or employee for recoveries made against him or her in suits by or on behalf of the city. The city council may, however, authorize the city attorney to represent any officer or employee in a suit brought by a taxpayer in behalf of the city against the officer or employee. 2 —194— APPENDIX E WIRE AND ELECTRONIC SERVICES COMPANY AGREEMENT FOR ELECTRONIC FUNDS TRANSFERS THROUGH THE AUTOMATED CLEARING HOUSE The remainder of this agreement is on file in the Office of the Director of Finance, 1201 Leopard Street, 4th floor, Corpus Christi, Texas 78401. -195- 17 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 9, 2008 AGENDA ITEM: Motion authorizing the City Manager to amend the Contracts for Services in Lieu of Annexation between the City and Sam Kane; Sam Kane Beef Processors, Inc.; Mary Hutchins Triestman Limited Partnership and Sam Kane Beef Processors, Inc.; and Abhud, LLC, and Sam Kane Beef Processors, Inc., which were authorized by the City Council on November 18, 2008, in relation to the disannexation of the property, by extending the terms of the contracts from five (5) to fifteen (15) years and clarifying terms for reannexing the properties and application of City ordinances to the properties. REQUIRED COUNCIL ACTION: Approval to amend the Contracts for Services in Lieu of Annexation between the City and Sam Kane and adjacent properties. PREVIOUS COUNCIL ACTION: Council approved a Chapter 380 Agreement with Sam Kane Beef Processors, Inc. on December 19, 2006; Council approved an amendment to the Chapter 380 Agreement on June 23, 2008; Council approved an ordinance for disannexation of Sam Kane Beef Processors, Inc. on November 18, 2008. CONCLUSION AND RECOMMENDATION: Sam Kane Beef Processors, Inc. is the 8th largest employer in the City with over 850 employees and a gross payroll of $29 million. Staff recommends approval of the requested amendment for disannexation and related agreements. Irma Caballero ,Director Economic Development —199— BACKGROUND INFORMATION Council Action on November 18, 2008 • Approval of an ordinance to disannex property owed by Sam Kane and Sam Kane Beef Processors, Inc. • Approval of an ordinance to disannex adjacent properties ➢ Rachel Madean Brown Magill ➢ Mary Hutchins Triestman Limited Partnership ➢ Adhub, LLC ➢ Ann McMaster, General Partner, Haring Heirs ➢ Chessie Perkins ➢ Gladys V Stillwell ➢ Rose Mary Zvara, Trustee, RZ Realty Trust • 5 year term agreement with Sam Kane Beef Processors, Inc. On December 1, 2008, Jerry Kane advised the City that he had been notified by the U.S. Department of Agriculture (USDA) that the term of the agreement with the City must be the same as the term of the loan guarantee. The U. S. Department of Agriculture is guaranteeing the loan for an 18 years. The following are the amendments to the agreement previously approved by Council on November 18, 2008. Amendment to the Agreement • Change term of agreement to 15 years • Disannexation of the following properties as required by USDA ➢ Sam Kane Beef Processors, Inc. ➢ Sam Kane ➢ Mary Hutchins Triestman Limited Partnership ➢ Abhud, LLC —200— THE STATE OF TEXAS § COUNTY OF NUECES § CONTRACT FOR SERVICES IN LIEU OF ANNEXATION This Contract made and entered into by and between the City of Corpus Christi, Texas, a municipal corporation of Nueces County, Texas ( "City "), and Sam Kane Beef Processors, Inc., a Texas for - profit corporation, Landowner, ( "Company "). WITNESSETH: WHEREAS, it is the general policy of the City Council of the City of Corpus Christi, Texas, to adopt reasonable measures permitted by law that will tend to enhance the economic stability and growth of the City and its environs and will attract the location of new and the retention and expansion of existing industries in the City and its environs, and this policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, Company is the owner of land and improvements on land within the extraterritorial jurisdiction of the City of Corpus Christi, and WHEREAS, upon execution of this contract by the City this land shall be known as "Corpus Christi Strategic Partnership Zone No. 1," and this land is more particularly described in Exhibit "A" by metes and bounds, as provided in Section VII and in Exhibit "B" by a listing of the property by account number designated by the Nueces County Appraisal District ( "NCAD ") or its successor attached to this Contract, and incorporated in this Contract for all purposes, in this Contract called "the land" and upon which Company has either constructed improvements; and WHEREAS, under the policy and the provisions of Section 43.0563, Texas Local Government Code, City is willing to enter into strategic partnership agreements for the provision of services to industries located within its extraterritorial jurisdiction in lieu of annexation; and WHEREAS, City desires to encourage the retention, updating, expansion, and growth of industries within the City and its environs, and for this purpose desires to enter into this Contract with Company. NOW, THEREFORE, in consideration of the premises, the mutual contracts of the parties in this Contract contained and under the authority granted under Section 43.0563, Texas Local Government Code, City and Company agree as follows: I. A.1. City covenants and agrees that during the term of this Contract, and subject to the terms and provisions of this Contract; the land will retain its extraterritorial status as a strategic partnership zone and shall continue to retain this status until and unless the Page 1 of 8 Contract for Services In Lieu of Annexation _SKBP - 1205204Oc status is changed under the terms of this Contract. Except as provided in this Contract, the City further covenants and agrees that it will not annex the land. 2. During the term of this Contract, City has no obligation to extend to the land any City services, except fire protection and City utility services being provided to and paid for by Company on the date of this Contract, including water, wastewater, gas, and storm water services Utility services will be provided at inside city limits rates. B. Further, City and Company agree that during the term of this Contract, Company shall comply with the City's: 1. Ordinances, rules, or regulations governing -and platting of the land, as required by Section 212.003, Texas Local Government Code, and Section I.A., Corpus Christi Platting Ordinance. Company further agrees that it will in no way divide the land or additions to this Contract without complying with State law and City ordinances governing subdivision of land. 2. Ordinances, rules, or regulations prescribing any building, electrical, energy conservation, fuel gas, mechanical, plumbing, inspection, or other technical construction code or codes. This requirement is imposed as a condition of receiving utility services under this contract, in lieu of a separate contract under Article VIII, Chapter 55, Code of Ordinances, City of Corpus Christi. 3. Company agrees to pay the municipal solid waste system service charge, that would apply if the property was located within the city limits. Company covenants and agrees that this Contract must be treated as a petition for annexation of the land and a request for immediate annexation upon termination of this Contract. Upon termination of this Contract for efault; or termination at the request of-either-party the Company, the lands are automatically annexed into the City, and the Company waives any and all rights to contest the annexation by the City. This covenant is a covenant running with the land, and is binding upon the Company's successors and assigns. 11. The term of this Contract shall be five (5) fifteen (15) years beginning December 1, 2008, and continuing until November 30, 2013 2023, unless extended for additional Page2of8 Contract for Services In Lieu of Annexation — SKBP — 1205262e2 period or periods of time upon mutual consent of Company. If this Contract is not extended for an additional period or periods of time on or before May 31 of the final calendar year of the term of this Contract, then the immunity from annexation granted in this Contract terminates on that date, but all other terms of this Contract shall remain in effect for the remainder of the term; provided, however, the effective date and time of annexation may not be earlier than midnight of November 30 of the final year of the term. Each year during the term of this Contract, Company shall pay to City an amount in lieu of taxes on the land, including improvements and personal property located on the land, equal to one hundred percent (100 %) of the amount of ad valorem taxes based upon the market value of the land, improvements, and personal property, which would otherwise be payable to City by Company if the land were situated within the city limits of City. IV. A. Company agrees to pay to City on or before January 31 of the year following each year during the term of this Contract all payments in lieu of taxes provided for under this Contract without discount for early payment. The present ratio of ad valorem tax assessment used by City is one hundred percent (100 %) of the fair market value of property, including land, improvements, and personal property. Any change in the ratio used by City shall be reflected in any subsequent computations under this Contract. This Contract and the method of determining and fixing the amount of in lieu of taxes payments under this Contract shall be subject to all provisions of law relating to determination of market value and taxation, including, but not limited to, laws relating to rendition, assessment, equalization, and appeal. B. In determining the Company's in lieu of taxes annual payment required under this Contract, the calculation shall be made utilizing the fair market value of all property determined by NCAD or its successor under provisions of the Texas Property Tax Code. The Company shall timely provide information and reports required under Texas law, rules, and regulations to NCAD or its designee, so that the appraisal process can be completed in accordance with all applicable state laws. Upon written request each year by the City's Collection Section, the Company will provide the City with the certified fair market value assessment for use in calculation and preparation of the annual in -lieu tax payment. V. If Company elects to protest the valuation set on any of its properties by Nueces County Appraisal District (NCAD) for any year or years during the term of this Contract, it is agreed that nothing in this Contract shall preclude the protest and Company shall have the right to take all legal steps desired by it to reduce the same as if the property were located within the City, except with regard to the exemptions in Part IV B. Page 3 of 8 Contract for Services to Lieu of Annexation — SKBP — 120529102r Notwithstanding any protest by Company, Company agrees to pay to City an initial in lieu of tax payment, on or before the date provided for in this Contract, of at least the amount of the payment in lieu of taxes on the land, improvements, and personal property that would be due by Company to City under this Contract on the basis of renditions filed by Company with City's Collection Section for that year on the basis of the assessment of this Contract for the last preceding year, whichever is higher. When the valuation on the property has been finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final settlement of the controversy, then within thirty (30) days thereafter Company shall make to City any additional payment due based on the final valuation. If as a result of final judgment of a court of competent jurisdiction, or as the result of other final settlement of the controversy, the valuation of Company's property is established as an amount less than the amount used to compute the initial in lieu of tax payment for that year by Company, then within thirty (30) days thereafter City shall make to Company any payment due based on the difference between the initial payment and that which is computed based on the final settlement. VI. A. If Company fails or refuses to comply with all or any of the terms, conditions, and obligations in this Contract imposed upon the Company, then this Contract may be terminated at the option of City and the City may elect to sue to recover any sum or sums remaining due under this Contract or take any other action which in the sole discretion of the City it deems best. If the City elects to sue to recover any sum due under this Contract, the penalties, interest, attorney's fees, and cost of collection are recoverable by the City as would be in a suit to recover delinquent ad valorem taxes. If the Company is an industry covered by the third paragraph of Section 2 of Ordinance 15898, as amended, failure to comply with the terms of that paragraph constitutes grounds for termination of this Contract, provided however, that the Company must be given written notice of the grounds for termination and if within sixty (60) days the Company complies or demonstrates a satisfactory plan of compliance (where compliance requires more than sixty (60) days) the Contract may not be terminated. The lands are automatically annexed into the City upon termination of the Contract. B. If Company defaults in paying in lieu of tax payments under this Contract, City is entitled to a tax lien on the land and improvements; and the lien may be enforced by City in the same manner as provided by law for the collection of delinquent ad valorem taxes. C. If City breaches this Contract by annexing or attempting to pass an ordinance annexing any of the land, Company may enjoin City from the date of its breach for the balance of the term of this Contract, from enforcing any annexation ordinance adopted in violation of this Contract and from taking any further action in violation of this Contract. If Company elects to pursue this remedy, then so long as City specifically performs its obligations under this Contract, under injunctive order or otherwise, Company shall continue to make the annual payments required by this Contract. Page 4 of 8 Contract for Services In Lieu of Annexation — SKBP — 120524141m VII. Company agrees to provide to City at Company's expense, a survey plat and field note description of the land. VIII. A. If any attempt to annex any of the land owned, used, occupied, leased, rented, or possessed by Company, is made by another municipality, or if the incorporation of any new municipality should attempt to include within its limits the land or property, the City shall seek a temporary and permanent injunction against the annexation or incorporation, with the cooperation of Company, and shall take any other legal action necessary or advisable under the circumstances. The cost of the legal action shall be borne equally by the Company; provided, however, the fees of any special legal counsel shall be paid by the party retaining same. B.1. If City and Company are unsuccessful in obtaining a temporary injunction enjoining the attempted annexation or incorporation, Company shall have the option of: (a) Terminating this Contract, effective as of the date of the annexation or incorporation. (b) Continuing to make the in lieu of taxes payments required under this Contract. 2. This option must be exercised within thirty (30) days after the application for the temporary injunction is denied. 3. If Company elects to continue the in lieu of taxes payments, the City shall place future payments under this Contract together with part of the payment for the calendar year in which the annexation or incorporation is attempted, prorated to the date the temporary injunction or relief is denied, in a separate interest - bearing escrow account that must be held by City subject to the following: (a) If final judgment (after all appellate review, if any, has been exhausted) is entered denying a permanent injunction and /or upholding the annexation or incorporation, then all these payments and accrued interest must be refunded to Company. (b) If final judgment (after all appellate review, if any, has been exhausted) is entered granting a permanent injunction and /or invalidating the annexation or incorporation, then all the payments and accrued interest may be retained for use by City. IX. This Contract inures to the benefit of and be binding upon City and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and remains in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operations of law, all or any part of the land, and this Contract contained must be held to be covenants running with the land for so long as this Contract or any extension of this Contract remains in force. Page 5of8 Contract for Services In Lieu of Annexation — SKBP — 120520261_ X. In all of its procurements, including, but not limited to, procurements of supplies, materials, equipment, service contracts, construction contracts, and professional services contracts, the Company shall use reasonable efforts to procure same from businesses located within Nueces County, unless same are not reasonably and competitively available within the area. Company acknowledges that the City provides a regional water system that is critical to the well -being and economic growth of the entire area and that it is important for each customer to continue to use the system as its principal source of water. Company agrees to provide six months written notice of any intent or action to obtain water from any source other than the City. The Company shall make reasonable efforts to determine local availability and competitiveness of other supplies, materials, equipment, service, construction, and professional service contracts, but shall not be required to maintain records regarding this requirement other than those normally kept in its usual course of business. XI. If any word, phrase, clause, sentence, paragraph, section, article or other part of this Contract or the application of this Contract to any person, firm, corporation or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of the word, phrase, clause, sentence, paragraph, section, article or other part of this Contract shall be deemed to be independent of and separable from the remainder of this Contract and the validity of the remaining parts of this Contract shall not be affected thereby, unless the holding has the effect of diminishing the revenues payable to City under this Contract. XII. This Contract may be executed in multiple counterparts, each of which is deemed an original. ENTERED into this day of November, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa 'Angel R. Escobar City Secretary City Manager Page 6 of 8 Contract for Services In Lieu of Annexation — SKBP — 120520368 LEGAL FORM APPROVED: November , 2008 R. Jay Reining First Assistant City Attorney For City Attorney CITY OF CORPUS CHRISTI ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on November _, 2008, by 'Angel R. Escobar, City Manager, City of Corpus Christi, a Texas municipal corporation, on behalf of the corporation. Notary Public, State of Texas SAM KANE BEEF PROCESSORS, INC. LANDOWNER By: Jerry Kane President and CEO Page 7of8 Contract for Services In Lieu of Annexation — SKBP — 120540I?g- LANDOWNER ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF NUECES Before me, the notary public whose name is signed and printed (or typed) below, on this day personally appeared Jerry Kane, President and CEO, Sam Kane Beef Processors, Inc., a Texas for - profit corporation, as landowner, for the purposes and consideration in this Contract expressed. Given under my hand and seal of office this day of November, 2008. Notary Public, State of Texas Page 8 of 8 Contract for Services In Lieu of Annexation — SKBP — 12002266] 18 CITY COUNCIL AGENDA MEMORANDUM December 16, 2008 AGENDA ITEM: Resolution adopting the Corpus Christi Commercial Revitalization Local Strategic Plan. ISSUE: The Community Renewal Act of 2000 requires local governments and states that have a federally designated Renewal Community in their jurisdiction to adopt a plan for allocating the Commercial Revitalization Deductions. The Corpus Christi Revitalization Local State Plan was approved by the City Council on October 23, 2007. The Plan is being resubmitted to amend the Outreach Process and Deadline for Application. REQUIRED COUNCIL. ACTION: Approval of the amendment, as presented. CONCLUSION AND RECOMMENDATION: City staff recommends approval of the amendment to the Corpus Christi Commercial Revitalization Local Strategic Plan. rma C. allero, Economic Development —211— BACKGROUND INFORMATION The Renewal Community program is scheduled to expire December 31, 2009. Currently, the City has $950,000 available in Commercial Revitalization Deductions for 2009. Due to a number of requests from qualified applicants the City will not be holding bus tours and small business development seminars. This type of outreach was necessary during the years in which we were unable to recruit participants. In an effort to accommodate participants and ensure they will have qualified projects in service by December 31, 2009, it is necessary to adjust the deadline for applicant submission from June 30th to January 30, 2009. A legal notice notifying the public of the Renewal Community program and deadline for submission of applications was published in the Corpus Christi Caller Times on November 30, 2008. The following is the 2008 -2009 Renewal Community Commercial Revitalization Local Strategic Plan. —212— Page 1 of 2 RESOLUTION ADOPTING THE CORPUS CHRISTI COMMERCIAL REVITALIZATION LOCAL STRATEGIC PLAN BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council, as the governing body of the City of Corpus Christi, adopts the City of Corpus Christi Commercial Revitalization Local Strategic Plan for the City's Renewal Community Commercial Revitalization Deduction Allocation Program. The plan is attached to this resolution as Attachment A. This plan replaces the plan adopted on October 23, 2007, by Resolution 027457, as amended on November 7, 2007, by Resolution 027482. SECTION 2. The City Manager is directed to forward a copy of this resolution and the City of Corpus Christi Commercial Revitalization Local Strategic Plan to the Executive Director, Texas Department of Economic Development. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Henry Garrett Mayor APPROVED AS TO FORM: December 9, 2008. By: R. :y reining Fi st • ssistant ' y Attorney for City Attorney Renewal Community Local Strategic Plan — 12092008 —213— Corpus Christi, Texas of , 2007 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 Renewal Community Local Strategic Plan — 12092008 —214— Page 2 of 2 Cats of Cofrp City of Corpus Christi 2008 -2009 Renewal Community Commercial Revitalization Local Strategic Plan The City of Corpus Christi 2008 -2009 Renewal Community Revitalization Local Strategic Plan establishes procedural steps as required by Federal, State and local governments, which must be implemented by the Coordinating Responsible Authority (CoRA) for the Corpus Christi Renewal Community. The Corpus Christi Renewal Community is allocated $12 million annually to offer tax deductions to eligible businesses. These funds will be allocated based upon the following percentages: 85% or $10,200,000 for large projects and 15% or $1,800,000 for small projects. The City Council may vary, alter, or waive the deadline, selection criteria, selection priorities, and point values, when variances, alteration, or waiver is in the public interest. Outreach Process Notifying the business community about the opportunities and benefits available through the Renewal Community (RC) program is as follows: 1. Public notice inviting applications for Commercial Revitalization Deduction (CRD) allocations will be published in the Corpus Christi Caller -Times at a minimum of once a year indicating deadlines for submitting applications. The Public Notice will provide applicants a minimum of 30 days notice of the deadline to submit applications. 2. One to two Renewal Community bus tours will be held each year. 3. Small Business Development seminars will be held in the Spring and Fall of each year. 4. Application information will be available by contacting the CoRA at (361) 826- 3850 or via the City of Corpus Christi's web site at: http:// www. cctexas .com /economicdevelopment/ . Deadline for Application Project applications will be accepted through June 30th of each year. At that time all applications will be reviewed and selected based upon criteria established by the U.S. CC 2008 -2009 Renewal Community Plan — 12092008 _215— 4 1.2-.) a L _ _ 4- n 1 Department of Housing and Urban Development (HUD) and the Governor's Office as well as local priorities established in this plan. If CRD Tax Credits are still available, another public notice will be issued no later than the first week in July of the same year. Selection Criteria The CoRA will review applications which must meet the following requirements: 1. The expenditures of the project meet the statutory requirement of the allowable Commercial Revitalization expenditures. 2. The CRD deduction is less than $10 million. 3. The applicant is in good standing with the Texas Comptroller of Public Accounts and the Texas Workforce Commission has confirmed that the applicant is current on unemployment insurance tax. 4. The project will add value to the existing tax base. 5. The project proposes to directly or indirectly create or retain a minimum of ten (10) permanent full -time jobs in the Renewal Community. 6. The project adds residential and /or commercial square footage or demonstrates an increased property value in the Renewal Community. 7. The applicant has completed the project or has financing in place to complete the preliminary phase of the project and demonstrates financial capability to complete the project. 8. The project contributes to the City's Area Development Plans. 9. The project is located in one of the following Renewal Community census tracts: 1, 3, 4, 10, 11, 7, 50, 5, 13 or 35. 10.The project is eliminating slum or blight in a particular area within the Renewal Community. 11. The project is appropriately zoned. 12. The project must be completed by the end of the second calendar year in which the allocation is made. The CRD can be applied to the depreciable costs of a new building or the costs associated with an existing building that is substantially rehabilitated. 13. The applicant commits to providing information on permanent jobs created and, retained as a result of the proposed project when requested by the Economic Development Office. CC 2008 -2009 Renewal Community Plan — 12092008 _216— 2 Large Project Selection Priorities Projects will be selected for recommendation to the City Council based upon the following priorities: 1. The project provides residential units in the Downtown area. 2. The project redevelops a vacant building or lot in the Downtown area. 3. The project is located in the Industrial District with significant job creation at wages exceeding $50,000 per year, per job. 4. The project provides for significant job creation at wages exceeding $40,000 per year, per job. 5. Projects may be given full point value if the capital investment exceeds $10 million. 6. Project is a public /private partnership with the City and /or is a project of the Corpus Christi Regional Economic Development Corporation (CCREDC). The chart below provides a point value for scoring of Large projects: Large Project Selection Criteria Point Value Residential in Downtown Area 30 Redevelopment in Downtown Area 25 Industrial District Job Creation at $50,000 + per year, per job 20 Job Creation at $40,000 + per year, per job 15 Project Investment exceeds $10 million 10 Small Project Selection Priorities Projects will be selected for recommendation to the City Council based upon the following priorities: 1. The project provides residential units in the Downtown area. 2. The project redevelops a vacant building or lot in the Downtown area. 3. Each job shall pay at least a "living wage ". For the purposes of this Program "living wage" shall mean that annual amount determined by the U. S. Department of Health and Human Services for the Corpus Christi area as being at the poverty level for a family of three, divided by 2,080 hours per year. CC 2008 -2009 Renewal Community Plan — 12092008 —217— 3 4. The project creates between 2 to 10 jobs. Projects may be given full point value if job creation is 10. 5. Projects may be given full point value if the capital investment is $1 million. The chart below provides a point value for scoring of Small projects: Small Project Selection Criteria Point Value Residential in Downtown Area 30 Redevelopment in Downtown Area 25 Job Creation - each job will pay at least a "living wage" 20 Project creates between 2 -10 jobs 15 Project Investment is $1 million 10 Recommendation will be submitted to the City Manager and City Council for approval. Submittal to the Governor's Office Within 10 working days following the approval of applications by the City Council, the CoRA will submit to the office of the Governor the following documentation: 1. A certification signed by the City Manager as the CEO of the governing body that the governing body has followed the procedures as indicated in this plan and to the best of his or her knowledge, each application approved by the City Council is complete and meets the requirements of the Commercial Revitalization Deduction (CRD) Program. 2. Copy of each application nominated by the City Council to receive the CRD allocations, public notice for the application process, governing body's motion nominating the project, reasonable explanation for each project being selected or denied and identifies the criteria set forth above in the explanation. 3. All CRD approved projects must be submitted to the Governor's Office by November 1 of each year. 4. The Commercial Revitalization Local Strategic Plan must be submitted to the Governor's Office in December of each year. Annual Report Requirements The Renewal Community CoRA will submit an annual report to the Community Renewal Agency (CRA) describing the status of each active project in its jurisdiction receiving CC 2008 -2009 Renewal Community Plan — 12092008 — 21 8— 4 CRD allocations. The annual reports will be due March 1 of each calendar year beginning in 2003 and ending in 2010 and reporting on activity ending December 31 of the previous year. The report will include the following information: 1. Status of all projects currently in process in addition to those already in service (including success stories, press releases, and any other news coverage). 2. A brief narrative describing the impact of the CRD on the RC. 3. Number of direct and indirect jobs both new and retained and approximate average salary. 4. Copy of the Renewal Community's annual report to HUD. CC 2008 -2009 Renewal Community Plan — 12092008 — 21 9— 5 19 AGENDA MEMORANDUM DATE: December 16, 2008 SUBJECT: Greenwood Drive Improvements Phase 1, from Gollihar to SPID (Project No. 6277) BOND ISSUE 2004 CHANGE ORDER NO. 5 AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute Change Order No. 5 to the construction contract with Salinas Construction Technologies from Pleasanton, Texas in the amount of $186,166.42, for a total restated fee of $4,068,151.90, for the Greenwood Drive Improvements, Phase 1, from Gollihar to SPID for additional improvements to existing sidewalks, ADA ramps, driveways, and curb and gutter. ISSUE: The project was originally reviewed by the Texas Department of Licensing and Regulation (TDLR), and accepted before construction commenced. The City has implemented new Americans with Disabilities (ADA) initiatives which exceed minimum ADA requirements and these changes provide improvements for all of the sidewalks and driveways which do not comply with current standards. FUNDING: Funding is available from the FY 2008 Capital Improvement Program (CIP). RECOMMENDATION: Staff recommends approval of the Motion as presented. Kevin towers, Interim Director of Engineering Services Additional Support Material: Exhibit "A" Background Information Exhibit "B" Prior Project Actions Exhibit "C" Change Order Summary Exhibit "D" Location Map H:\ USERS2WOME\VELMAP\GEMSTREET\6277 GREENWOOD DRIVE\CONST117 N\ CHANGE ORDER NO. 5\ AGENDA MEMO BACKGROUND INFORMATION SUBJECT: Greenwood Drive Improvements Phase 1, from Gollihar to SPID (Project No. 6277) BOND ISSUE 2004 CHANGE ORDER NO. 5 CHANGE ORDER NO. 5: The proposed Change Order No.5 provides for the sidewalk, drivewayand ADA improvements along Greenwood Drive from SPID to Gollihar. The work consists of removal and replacement of approximately 5390 square foot of existing sidewalks, 9,500 square feet of commercial driveways and associated curb & gutter. All work will be in compliance with ADA accessibility and TDLR requirements. CHANGE ORDER BACKGROUND: Before street construction began on this project, the Texas Department of Licensing and Regulation (TDLR) reviewed the construction plans and accepted the proposed Americans with Disabilities (ADA) transition plan. This work included removal of all ADA barriers and provided for an ADA accessible route along this section of roadway. Subsequent to their approval, the City has implemented new Americans with Disabilities (ADA) standards which now exceed the originally approved plans. This change order will utilize project contingencies and savings to construct a fully ADA accessible street on both the north and south corridors and allow unhindered travel on either side of the street along the new sidewalks and driveways. This work will provide for a better overall project and now exceeds the minimum ADA standards for accessibility. This change order to the existing contract allows a more cost effective approach to complete this work using the current completive bid prices and avoids additional mobilization and demobilization costs that would be incurred if this work was bid and completed under a new, separate project. PROJECT DESCRIPTION: Greenwood Drive is a major north -south arterial that provides the west side area of the City with the main access to SPID and other major east -west arterials. In the early -to -mid 1990s, improvements were made to the roadway south of SPID, this project continues improvements northerly from SPID to Gollihar. The improvements will include the complete reconstruction of the existing pavement; removal and replacement of selected curb and gutter and sidewalk, ADA curb ramps, lane striping and pavement markings, water and wastewater improvements, supplemental underground storm water system, traffic signal system improvements, and new street lighting. PROJECT BACKGROUND: On Tuesday, November 2, 2004, the City of Corpus Christi held an election to consider a number of ballot propositions to fund major capital improvements for the community, Bond Issue 2004. The November 2, 2004 election was held jointly with Nueces County and coincided with the Presidential Election. EXHIBIT "A" Page 1 of 2 H :HOME1LVNDAS \GEMStreete2004 Bond Issue 6277 - GreenwaodtChangsOn4SIAGENDA BACKGROUND.dac EXHIBIT "A" Page 2 of 2 The Bond Issue 2004 package includes $95 million in projects to be funded from ad valorem property taxes (a General Obligation Bond Issue) in Street, Public Health and Safety, Public Facilities, Parks and Recreation, and Bayfront Master Plan projects. The proposed projects target the City's most immediate needs to improve existing physical facilities, provide for growth, and protect the City's investment in its infrastructure. H:\HOME\LVNDAS \GEMStreets\2004 Bond Issue16277 - Greenwootl\Change Ord22.€AGENDA BACKGROUND.doc PRIOR PROJECT ACTIONS SUBJECT: Greenwood Drive Improvements Phase 1, from Gollihar to SPID (Project No. 6277) BOND ISSUE 2004 CHANGE ORDER NO. 5 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 residents homesteads of persons 65 years of age or older or disabled persons and eligible spouses; and adoption of seven amendments to the Charter of the City of Corpus Christi (Ordinance No. 026022). 3. May 31, 2005 — Motion authorizing the City Manager, or his designee, to execute a Contract For Professional Services with HDR Shiner Moseley & Associates, Inc. from Corpus Christi, Texas in the amount of $534,416 for the Greenwood Drive, Phase 1, from Gollihar Road to SPID (Motion No. M2005 -174). 4. January 24, 2006 — Motion authorizing the City Manager, or his designee, to execute Amendment No. 2 to the Contract For Professional Services with HDR Shiner Moseley & Associates, Inc. from Corpus Christi, Texas in the amount of $76,020.84 for the Greenwood Drive, Phase 1, from Gollihar Road to SPID (Motion No. M2006 -017). 5. December 18, 2007 — Ordinance approving the FY 2008 Capital Budget and Capital Improvement Planning Guide in the amount of $127,275,900 (Ordinance 027546). 6. February 26, 2008 — Motion authorizing the City Manager, or his designee, to execute a construction contract with Salinas Construction Technologies, Inc. of Pleasanton, Texas in the amount of $3,787,013.79 for the Greenwood Drive, Phase 1 from Gollihar Road to South Padre Island Drive (SPID) Project for the Base Bid plus Additive Alternate No. 1 (BOND ISSUE 2004) (Motion No. M2008 -054). 7. April 8, 2008 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 4 to the Contract For Professional Services with HDR Shiner, Moseley and Associates, Inc. in the amount of $60,000, for a total restated fee not to exceed $692,731.24, for construction management and inspection services on the Greenwood Drive Phase 1 Project from Gollihar Road to S.P.I.D. (BOND ISSUE 2004) (Motion No. M2008 -090). 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). —226 - H:\ USERS2 \HOME\VELMAP\GEN\STREET\6277 GREENWOOD DRIVE\CONSTRUCTION\CHANGE ORDER NO. 5\PRIOR PROJECT ACTIONS EXHIBIT "B" Page 1 of 2 IEXHIBIT "B" Page 2 of 2 PRIOR ADMINISTRATIVE ACTION (continued): 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 23, 2005 - Administrative approval of Agreement for Construction Materials Engineering Laboratory's Inspection and Materials Testing Services with Fugro Consultants from Corpus Christi, Texas in the amount of $9,800 for the Greenwood Drive, Phase 1, from Gollihar Road to SPID. 5. October 24, 2005 - Administrative approval of Agreement for Construction Materials Engineering Laboratory's Inspection and Materials Testing Services with Fugro Consultants from Corpus Christi, Texas in the amount of $371 for the Greenwood Drive, Phase 1, from Gollihar Road to SPID. 6. December 1, 2005 — Administrative approval of Amendment No. 1 to the Contract for Professional Services with HDR Shiner Moseley & Associates, Inc. in the amount of $0 for the Greenwood Drive, Phase 1, from Gollihar Road to SPID. 7. December 20, 2006 — Administrative approval of Amendment No. 3 to the Contract for Professional Services with HDR Shiner Moseley & Associates, Inc. in the amount of $22,294.40 for the Greenwood Drive, Phase 1, from Gollihar Road to SPID. 8. June 18, 2008 — Executed Change Order No. 1 to the construction contract with Salinas Construction Technologies, Inc. of Pleasanton, Texas in the amount of $21,757.11 for the Greenwood Drive, Phase 1 from Gollihar Road to South Padre Island Drive (SPID) Project (BOND ISSUE 2004). 9 August 12, 2008 — Executed Change Order No. 2 to the construction contract with Salinas Construction Technologies, Inc. of Pleasanton, Texas in the amount of $24,713.41 for the Greenwood Drive, Phase 1 from Gollihar Road to South Padre Island Drive (SPID) Project (BOND ISSUE 2004). 10. August 18, 2008 — Executed Change Order No. 3 to the construction contract with Salinas Construction Technologies, Inc. of Pleasanton, Texas in the amount of $24,500 for the Greenwood Drive, Phase 1 from Gollihar Road to South Padre Island Drive (SPID) Project (BOND ISSUE 2004). 11. September 22, 2008 — Executed Change Order No. 4 to the construction contract with Salinas Construction Technologies, Inc. of Pleasanton, Texas in the amount of $24,001.17 for the Greenwood Drive, Phase 1 from Gollihar Road to South Padre Island Drive (SPID) Project (BOND ISSUE 2004). —227— H: \USERS2W OME\VELMAP \GEM STREEI\6277 GREENWOOD DRIVE\CONSTRUCTIOMCHANGE ORDER NO. 5 \PRIOR PROJECT ACTIONS DEPARTMENT OF ENGINEERING SERVICES CHANGE ORDER SUMMARY SHEET December 9, 2008 PROJECT: Greenwood Drive, Phase 1 — Gollihar to SPID Project No. 6277 APPROVED: City Council Motion No. M2008 -054 on February 26, 2008 CONTRACTOR: Salinas Construction Technologies 3734 FM 3006 Pleasanton, TX 78064 TOTAL CONTRACT AMOUNT $3,787,013.79 25% Limit Amount 946,753.45 Change Order No. 1 (June 18, 2008) 21,757.11 Change Order No. 2 (August 12, 2008) 24,713.41 Change Order No. 3 (August 18, 2008) 24,500.00 Change Order No. 4 (September 22, 2008) 24,001.17 Change Order No. 5 (December 16, 2008).. 186,166.42 TOTAL All Change Orders $281,138.11 7.42% < 25% EXHIBIT "C" Page 1 of 1 H:\ USERS2UIOME \VELMAP\GENISTREET6277 GREENWOOD DRIVEICON$7@{J TION\CHANGE ORDER NO. EXCHANGE ORDER SUMMARY File : \ Mproject \councilexhibits \exh6277.dwg Greenwood Drive Phase 1, from Gollihar to SPID -229 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 11 -20 -2008 20 AGENDA MEMORANDUM City Council Action Date: December 16, 2008 SUBJECT: Whataburger Way Drainage Improvements AGENDA ITEM: Motion authorizing the City Manager or his designee to execute Change Order No. 6 to a construction contract with SLC Construction, LP, of Conroe, Texas, in the amount of $139,909.04 for the Whataburger Way drainage improvements project. ISSUE: Due to numerous complaints concerning constantly ponding water and flooding during minor rain events, the storm water line in the vicinity of Waterburger Way was televised in June of this year. Reports showed broken concrete in the inlet, two lines with adverse slopes and a system that was not adequate to support the current volumes. This project will clean up the existing damage and improve the current flow capacity by installing new inlets, underground culverts, curb and gutter, sidewalks, ADA ramps, and associated street pavement repairs at the intersection of Whataburger Way and Mildred Drive. This construction project is being proposed as a change order to the existing construction contract with SLC Construction, LP, for Everhart Road Phase 1 (Saratoga to Cedar Pass) to ensure timely construction to minimize the impact on the businesses and residences in the area. SLC Construction provided competitive pricing and has construction crews and equipment available to avoid excessive mobilization and demobilization. FUNDING: Funds for this project will come from the City's Strom Water Capital Improvement Program. RECOMMENDATION: Staff recommends approval of the motion as presented. Va " a Gray, 'IS Dir -. or of Stor ater Services Additional Support Material: Exhibit "A" Background Information Exhibit "B" Change Order Summary Exhibit "C" Location Map H:W OMELLYNDAS\GEMSIormwatef5263 - Whalaburger WayWgenda MemoAec2 3 3 — Kevin R. Stowers Interim Director of Engineering Services AGENDA BACKGROUND INFORMATION SUBJECT: Whataburger Way Drainage Improvements (Project No. 2294) PROJECT DESCRIPTION: The project provides for removal of approximately 85 linear feet (LF) of existing underground concrete pipe and installation of 450 LF of new 18" to 30" underground concrete pipe, removal and replacement of 140 LF of concrete curb & gutter with four new inlets, two manholes and street asphalt repairs. The work also includes removal and replacement of approximately 550 SF of sidewalks with new 4' wide sidewalks, new ADA ramps, landscaping, traffic controls and miscellaneous work needed to complete the project. The specific amounts are shown in the Change Order Summary (Exhibit "B "). PROJECT BACKGROUND: Due to numerous complaints of constantly ponding water and frequent flooding during minor rain events, a small NE contract was issued to Freese and Nichols, Inc. to televise and evaluate the problem and recommend improvements. The consultant's estimate of the construction cost was $140,617. City staff contacted two construction companies that currently have contracts with the City of Corpus Christi for construction estimates. SLC Construction, LP, submitted an estimate that was well below the other company's estimate and the consultant's estimate. In order to expedite this project and because of the competitive cost of $139,909.04 submitted by SLC Construction, City staff is recommending that the Whataburger Way drainage improvements project be constructed as Change Order No. 6 to SLC Construction's contract for Everhart Road Phase 1 project. Utilizing this method saves the City considerable cost and brings relief to the residents of the area before winter rain events begin. The contractor has informed the City the project will take three weeks to complete upon notice to proceed. PRIOR ADMINISTRATIVE ACTION: 1. April 15, 2008 — Administrative approval of a Small Agreement for Architect/Engineer Consultant Services with Freese and Nichols, Inc. in the amount of $49,336 for the Whataburger Way Drainage Improvements. —234— H :WOME \LYNOAS \GEMStormwaler\6263 - Whataburger WayV Benda Backgrountldoc CHANGE ORDER Department of Engineering Services City of Corpus Christi, Texas CHANGE ORDER NO: 6 FUNDING SOURCE: CONTRACT TIME: 640 C.D. DATE: December 1, 2008 Operating Department: Bond 2004 Name of Project: Everhart Road, Phase 1 (Saratoga Blvd. to Cedar Pass Drive) P.R. 6263 Contractor: SLC Construction, L.P. CHANGE ADD DEDUCT Whataburger Way Drainage Improvements $139,909.04 Project No. 2294 - (See Attached Sheet) TOTAL NET: $139,909.04 Why was this change necessary? (If left off the plans and specifications, explain why? Poor storm water drainage found during a topographic survey and T.V.I. conducted by Freese and Nichols, Inc. How can similar changes be avoided in the future? Unavoidable. A. CONTRACT PRICE $ 7,454,229.87 B. TOTAL CHANGE ORDERS (inc. current) $ 217,952.70 C. NEW CONTRACT PRICE $ 7,672,182.57 D. THIS CHANGE ORDER 139,909.04 E. PERCENT TOTAL CHANGE (B /A) 2.92% F. PREVIOUS TIME AUTHORIZED 0 C.D. G. ADDN'L CONTRACT TIME THIS CHANGE ORDER 0 C.D. H. TOTAL ADDITIONAL TIME 0 C.D. CITY OF CORPUS CHRISTI, TEXAS By: Director of Engineering Services APPROVED: Operating Department Dir. of Management & Budget Legal Department -235- CONTRACTOR By: Title: Project Manager SLC Construction, LP P 0 Box 639 Conroe, Texas 77305 Project Name: Owner: Description : Whataburger Way City of Corpus Christi Drainage P (936) 441 -8088 F (936) 441 -8098 Date: 20- Nov -08 Description Quantity Unit Unit Cost Total Cost Remove Existing Concrete Sidewalk 545 SF $ 3.50 $ 1,907.50 Remove Existing Concrete Island 51 SF $ 3.50 $ 178.50 Remove Existing Concrete C &G 140 LF $ 5.18 $ 725.20 Remove Existing Curb Inlet 3 Each $ 560.00 $ 1,680.00 Remove Exiing RC Pipe 85 LF $ 20.30 $ 1,725.50 18" Dia RCP Class III 72 LF $ 87.73 $ 6,316.80 24" Dia RCP Class III 10 LF $ 121.54 $ 1,215.43 30" Dia RCP Class III 376 LF $ 139.70 $ 52,525.57 18" Dia Concrete Plug 2 Each $ 2,345.00 $ 4,690.00 5' Standard Curb Inlet 3 Each $ 4,200.00 $ 12,600.00 6' Standard Curb Inlet 1 Each $ 4,900.00 $ 4,900.00 5' Inlet Extension 1 Each $ 1,750.00 $ 1,750.00 6' Dia Concrete Storm Water MH Type A 1 Each $ 5,600.00 $ 5,600.00 Concrete Storm Water MH Type B 1 Each $ 6,300.00 $ 6,300.00 Sediment Control Fence for SWPPP 160 LF $ 2.80 $ 448.00 5' C &G & Pavement Repair 140 LF $ 30.80 $ 4,312.00 4" Concrete Sidewalk 375 SF $ 8.40 $ 3,150.00 Concrete Curb Ramp 165 SF $ 9.80 $ 1,617.00 Concrete Traffic Island 51 SF $ 12.60 $ 642.60 Asphalt Pavement Repair Type 1 301 SY $ 33.88 $ 10,197.88 Asphalt Pavement Repair Type 2 27 SY $ 50.68 $ 1,368.36 Block Sodding in Disturbed Areas 71 SY $ 7.70 $ 546.70 Television Inspection of Enclosed SW Conduit 458 LF $ 9.80 $ 4,488.40 Trench Safety for RCP 458 LF $ 4.20 $ 1,923.60 Excavation Safety for Storm Water MH 2 Each $ 1,050.00 $ 2,100.00 Traffic Control 1 LS $ 7,000.00 $ 7,000.00 TOTAL $ 139,909.04 Notes: Excludes: Bore, Conc ete in trench, Striping, New Casing —236— Department of Engineering Services Change Order Summary Sheet December 9, 2008 PROJECT: Everhart Road, Phase 1 - Saratoga to Cedar Pass Dr Project No: 6263 APPROVED: City Council on 1/22/08 - Motion No. M2008 -013 CONTRACTOR: SLC Construction P.O. Box 639 Conroe, TX 77304 TOTAL CONTRACT AMOUNT $7,454,229.87 25% Limit Amount 1,863,557.47 Change Order No. 1 (7/3/08) 23,780.51 Change Order No. 2 (8/18/08) 1,889.40 Change Order No. 3 (10/6/08) 6,628.00 Change Order No. 4 (12/3/08) 21,545.75 Change Order No. 5 (12/5/08) 24,200.00 Change Order No. 6 (Whataburger Way- 12/9/08) 139,909.04 Total 217,952.70= 2.92% < 25% H1HOMEl RachelletGEMDrainagM2294- Whataburger Way Draina elCO No. 6 (622)§1inge Order 6urnmary.doc EXHIBIT "B" Page 3 of 3 H:\Home\Mproject\Councilexh\exh2294.dwg WHATABURGER WAY DRAINAGE IMPROVEMENTS 230 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 12/04/2008 wv 21 AGENDA MEMORANDUM City Council Action Date: December 9, 2008 SUBJECT: Solomon Coles Gymnasium Window Replacement (Project No. 4384) 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 $72,825.62 for Solomon Coles Gymnasium Window Replacement on the north and south sides. ISSUE: The Solomon Coles Gym is over 50 years old and the windows and frames are part of the original structure and require complete replacement. The deteriorated wood framing no longer provides protection from the outside weather or adequate structural support to the large 4' x 8' windows. This project will replace and upgrade the large windows and frames of the Gymnasium. The work is proposed under a Job Order Contract with Alpha Building Corporation. The proposed project was approved in the FY 2008 Community Development Block Grant (CDBG) Program. The project is now ready to begin construction; and requires City Council approval. FUNDING: Funds for this project are available from the Community Development Block Grant Fund. RECOMMENDATION: Staff recommends approval of the motion as presented. dkhSaJ i 1.0 Sally Gavlik, ,� " �Kevin R. Stowers, Director of Parks and Recreation 0 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 H1 USERS2\HOME\VELMAP\GEN \ CDBG \4384 SOLOMON COLES GYM WINB021 44ENDA MEMO BACKGROUND INFORMATION SUBJECT: Solomon Coles Gymnasium Window Replacement (Project No. 4384) PROJECT DESCRIPTION: The project will replace the large 4' x 8' exterior windows and wooden frames. The existing windows and frames are from the original construction of the facility and no longer provide protection from the outside elements. New aluminum framed windows will be provided that will eliminate infiltration of the outside air and moisture. The infiltration of air and moisture creates problems with the gym floor and comfort inside the facility. The work includes removal of existing wood framed windows and replacement with new aluminum frames and impact resistant insulated glass. The work will include demolition of the existing window fence screens no longer required to protect the glass from basketballs, etc. As per the Operations and Maintenance Agreement between the Corpus Christi Independent School District (CCISD) and the City of Corpus Christi's Parks and Recreation Department, CCISD is responsible for the upkeep of the landscape and grounds, and the City is responsible for building maintenance. CONSTRUCTION SCHEDULE: The project will be completed 75 days from notice to proceed. PROJECT BACKGROUND: This project was approved under the CDBG 2008 Program. This is the second phase of improvements for the facility as part of the transfer of the City Parks and Recreation Youth Programs from the T.C. Ayers facility to the Solomon Coles Gym. The previous project provided for miscellaneous interior improvements including ADA conversion of the restrooms. This will complete the critical facility improvements to allow for improved quality of services and life of the staff faculty and students. Other minor improvements may be developed under future projects and programs. 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. EXHIBIT "A" Page 1 of 2 H: USERS2IHOME \VELMAPIGENICDBG 4384 SOLOMON COLES GYM WIND ' 3 NDA BACKGROUND D Construction contract award can be accomplished in less than one month, significantly shortening the procurement time. D Each delivery order is a stand -alone contract. Future awards will be based specifically on the contractor's performance and the needs of the City of Corpus Christi. D 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. 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. H: \USERST1-1OMENELMAPIGEN\CDBG\4384 SOLOMON COLES GYM WINDOINtaff0A BACKGROUND EXHIBIT "A" Page 2 of 2 PROR PROJECT ACTIONS SUBJECT: Solomon Coles Gymnasium Window Replacement (Project No. 4384) PRIOR COUNCIL ACTION: 1. April 15, 2008 — Resolution adopting the FY 2008 Consolidated Annual Action Plan which includes the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Shelter Grant (ESG) Programs; authorizing the City Manager or his designee to submit the FY 2008 Consolidated Annual Action Plan to the U. S. Department of Housing and Urban Development (HUD); and authorizing the City Manager or his designee to make changes to the FY 2008 Consolidated Annual Action Plan if required by HUD (Resolution No. 027664). EXHIBIT "B" Page 1 of 1 H: \USERS2W OMEWELMAP\GEMCDBG\43B4 SOLOMON COLES GYM WIND:23E410R ACTIONS SCOPE OF WORK AND COSTS SUBJECT: Solomon Coles Gymnasium Window Replacement (Project No. 4384) The project will provide improvements to the Solomon Coles Gymnasium including removal of 14 each approximately 4' X 10' wood frame window and 2 each 2' X 3' wood frame windows, installation of new aluminum frame impact resistant windows where wood windows are removed, removal of metal screens on inside face of window opening, and installation of new drinking fountain inside gymnasium in hallway. SOLOMON COLES GYMNASIUM WINDOW REPLACEMENT (Alpha Building Corporation) General Requirements $9,870.16 Existing Conditions 545.60 Metals 5,716.54 Wood, Plastics, and Composites 1,019.12 Thermal and Moisture Protection 6,259.80 Openings 71,042.50 Finishes 709.74 Plumbing 2,955.40 Electrical 936.95 Subtotal 99,055.81 Bond (2.5%) 2,476.40 Permit (3%) 2,971.67 Subtotal 104,503.88 Coefficient (.8900) 11,495.43 Subtotal 93,008.45 Cost Index (78.3%) - 20,182.83 Total $72,825.62 H: \USERS2 \HOMEWELMAP\GEMCDBG\4384 SOLOMON COLES GYM W IND844SPE OF WORK AND COSTS EXHIBIT "C" Page 1 of 1 File : \ Mproject \councilexhibits \exh4384.dwg LOCATION MAP NTS INTERSTATE 37 LEOPARD ST. PROJECT No. 4384 ANIELOPEST. VICINITY MAP NOT TO SCALE EXHIBIT 'D' Solomon Coles Gymnasium Window Replacement CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 11 /20/2008 OW MO tissystsw 22 CITY COUNCIL AGENDA MEMORANDUM. City Council Action Date: December 9, 2008 AGENDA ITEM: Motion authorizing the City Manager or his designee to execute Amendment No. 5 in an amount not to exceed $100,000 with HDR Engineering, Inc. for on call services related to utility financial planning, utility rate determination, wholesale customer mediation expert testimony and other utility matters dealing with utility planning, finance and growth management. Project No. 8542 ISSUE: Additional service is required related to on -going utility financial planning, utility rate determination, wholesale customer mediations, expert testimony and other utility matters. FUNDING: Funding for this project is available from the Water Fund CONCLUSION AND RECOMMENDATION: Approval of the motion is recommended as presented. Kevin R. Stowers Interim Director - Engineering Services Attachments: Exhibit "A" Background Exhibit "B" Contract Summary H: \HOME\KE V I NS \GEN\ WATER \UtilityRateAnalysisNAEAmd 5Memo. DOC —249— AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION SUBJECT: Utility Rate Study (Project #8542) AMENDMENT: This amendment provides for delivery of on call services as needed for a variety of utility financial, utility rate, and other services associated with the implementation and management of the new utility rates. The City is also in mediation and faces the potential of litigation with wholesale outside City limit customers regarding the new water rate. BACKGROUND: The City initiated a water rate study with HDR on May 24, 2005. Modification and validation of the utility data base has been completed and is being updated to incorporate FY2005 -2006 utility data. The study was initiated in response to the strong desire of the City's wholesale water customers that the City conduct a water rate study to analyze changed conditions and to ensure the water rate is fairly based on those conditions. There have been three prior amendments of the contract. PRIOR COUNCIL ACTIONS: May 24, 2005 — a. Ordinance appropriating $255,790.00 from the Water Fund unappropriated fund balance into Water Fund No. 4010 for the Utility Water Rate Analysis Study; amending the FY2004 -2005 Annual Budget adopted by Ordinance No. 025878 by increasing appropriations by $255,790; and declaring an emergency. b. Motion authorizing the City Manager, or his designee, to execute a contract in the amount of $255,790 with HDR Engineering, Inc. of Corpus Christi, Texas for a Utility Rate Analysis Study. September 12, 2006 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 3 in the amount of $36,000 with HDR Engineering, Inc. of Corpus Christi, Texas for the development of Phases 2 and 3 of the Gas Rate Model Study for development of the model and marketing strategies. PRIOR ADMINISTRATIVE ACTIONS: May 1, 2006 — Administrative authorization of an agreement with HDR Engineering, Inc. of Amendment No. 1 in the amount of $24,500 for resolution and validation of various issues with utility data. August 30, 2006 - Administrative authorization of an agreement with HDR Engineering, Inc. of Amendment No. 2 in the amount of $24,000 for Phase 1 of a Gas Study and Gas Model Development for data gathering, compilation, and market forecasts, and evaluation of current rate design. September 27, 2007 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 4 in the amount of $44,400 with HDR Engineering, Inc. of Corpus Christi, Texas for additional coordination meetings, coordination with customer cities and technical expert(s) retained by the City of Corpus Christi or its customer cities. EXHIBIT "A" Page 1 of 2 H: \HOME\KEVI N S \GEN\ WATER\ UtilityRateAnalysis \AEAmd5WhA.doc FUTURE COUNCIL ACTION: Amendment to address additional services (if required) as a result of mediation or rate cases. EXHIBIT "A" Page 2 of 2 H:\ HOME \KEVINS \GEN\ WATER \UtilityRateAnalysis\AEAmd5Bk ExhA.doc —251— Amendment No. 5 Contract Summary Section 11. Scope of Services is amended to have Subsection L. Task 12 read: II. SCOPE OF SERVICES N. Task 14 — On Call Services The Consultant will provide on call services for utility financial planning, assistance in rate determination, wholesale customer mediation, expert testimony, and other utility related matters dealing with planning, finance and growth management. Examples of anticipated services that may be required are listed following the Summary of Fees Table. Additional services will be undertaken upon request, but any service requiring an increase in fees will be evidenced in writing as an additional amendment to this contract. Section III. Fees Authorized is amended to read as follows. III. FEES AUTHORIZED The City will pay the Consultant a total not to exceed fee of $484,690.00. The fee consists of an original contract fee of $255,790.00, an Amendment No. 1 fee of $24,500.00, an Amendment No. 2 fee of $24,000.00 and an Amendment No. 3 fee of $36,000.00 and an Amendment No. 4 fee of $44,400.00 and an Amendment No. 5 fee of $100,000.00. The table "Summary of Fees" shall be used when calculating the fee due for the proportion of services completed. Summary of Fees: Exhibit B Page 1 of 3 H:\HOME\KEV INS \GEN\ WATER \UtilityRateAnalysisW EAmd5SumExhB.doc -252- Original Contract A Task 1 — Data Gathering and Initial Policy Guidance 9,808 B. Task 2 — Evaluate Customer Use and Production Data 10,664 C. Task 3 — Existing /Projected Cost of Service 25,358 D. Task 4 — Develop Improved Model 34,348 E. Task 5 — Assess Miscellaneous Service Fees 12,071 F. Task 6 — Determine and Allocate Revenue Requirements 15,835 G. Task 7 — Adequacy of Existing Rates and Alternative Rate Designs 10,825 H. Task 8 — Model Training and Transfer 11,135 I. Task 9 — Reporting 17,410 J. Task 10 — Coordination 80,276 Labor Subtotal 227,730 Travel, Per Diem, Printing & Reproduction 8,060 Subcontractor Expense (Collier, Johnson & Woods) 20,000 Original Contract Total $255,790 Amendment No. 1 K. Task 11 - Resolution of Customer Billing Data 24,500 Amendment No. 1 Total 24,500 Amendment No. 2 L. Task 12.1 - Gas Utility Rate Study /Model — Phase 1 24,000 Task 12. 2 - Gas Utility Rate Study /Model — Phase 2 TBA Task 12.3 - Implementation of Gas Marketing Strategies TBA Amendment No. 2 Total $24,000 Amendment No. 3 Exhibit B Page 1 of 3 H:\HOME\KEV INS \GEN\ WATER \UtilityRateAnalysisW EAmd5SumExhB.doc -252- L. Task 12.1 - Gas Utility Rate Study /Model — Phase 1 Previously Authorized Task 12. 2 - Gas Utility Rate Study /Model — Phase 2 26,000 Task 12.3 — Implementation of Gas Marketing Strategies 10,000 Amendment No. 3 Total $36,000 Amendment No. 4 M. Task 13 - Additional Coordination Meetings 44,400 Amendment No. 4 Total $44,400 N. Amendment No. 5 Task 14 — On Call Services $100,000 Amendment No. 5 Total $100,000 Amended Total $484,690 ANTICIPATED ON -CALL SERVICES UPDATES OF THE CITY'S UTILITIES FINANCIAL PLANNING MODEL As requested, HDR will assist the City annually or semi - annually in the update of its utilities financial planning model. This would include updates of actual, estimated, and prospective utility expenses and revenues; customer count and service use information; water diversion and treatment volumes, wastewater treatment volumes, outstanding /pending debt, CIP data, inter - fund transfers, and other information needed to define pending utility expenses, revenue requirements, and desired rate design and pricing levels. There are four utilities to be assessed, and many possible issues surrounding each utility. It is understood that this effort may involve multiple iterations of data requests or model runs to address any data quality, changed- conditions circumstances, or alternative scenario forecasts. The degree of needed coordination may also vary from utility to utility and may involve additional coordination efforts that may be needed to address special issues. It is also uncertain what degree of data collection, model runs, and coordination efforts may be needed to accommodate possible changes in the City's fiscal year and /or timing of CIP adoption. It is also understood that HDR will periodically need to expend additional efforts obtaining and compiling a detailed download of the City's customer billing information for purposes of updating customer consumption profiles every several years. Exhibit A lists various responsibilities of City Staff and HDR in periodically updating the model. LAS BRISAS NEGOTIATION AND RATE DETERMINATION SUPPORT As needed, HDR will provide support to the City in evaluation of the potential Las Brisas agreements and determination of a blended raw water rate for water delivered to the port. This would involve review of contract terms, development of appropriate cost center accounting, and delineation of two new rates for raw water delivered to the port (with and without capital charges), as well a determination of a source of revenue to pay for oversizing costs. WHOLESALE CUSTOMER MEDIATION SUPPORT As needed, HDR will provide technical, coordination, and negotiation support in the pending mediation efforts with NCWCID #4. This could include the provision of data, developing technical evaluations and arguments, and expert support during the mediation itself. TCEQ EXPERT WITNESS SUPPORT As needed, HDR will provide technical, coordination, and negotiation support in the pending TCEQ complaint by NCWCID #4. This could include the provision of data, developing technical evaluations, and expert support during the Commission proceedings and administrative hearing. Exhibit B Page 2 of 3 H: \HOME \KEVINS \GEN\ WATER \UtilityRateAnalysisW EAmd5SWSB.doc MISC. UTILITY PLANNING, FINANCE, AND GROWTH MANAGEMENT SUPPORT As needed, HDR can provide the City will expert support on other utility funding and finance issues, such as exactions and dedications policy, impact and service fees, water accounting and metering issues, demand forecasting, water conservation, drought management, and other utility planning and finance issues that affect funding and efficiencies, and performance. Staff Responsibilities • Provide, within 30 days of the data request, a formatted download of HTE customer and water use information that reconciles with monthly billing summaries +/- 5% • Provide, within 7 days of availability, a formatted download of water and wastewater revenue and expense information, including 2 complete fiscal years of audited actuals, the amended or estimated year- ending budget for the current fiscal year, and proposed budget numbers for the pending fiscal year. • Provide within 7 days of availability, the proposed water and wastewater capital improvements program including list of projects recommended to be funded, anticipated year of funding, and anticipated cost. • Provide within 7 days of the data request, a download of water and wastewater utility debt by type of debt, series number, principal and interest payments by date by series, and percent water and wastewater funding of each bond series. • Conduct annual update of raw water charge. • Provide support, as needed, for HDR to: o interpret and incorporate changes in the budget or capital improvements program as it may affect the model structure or annual budgeted amounts. o reconcile any quality issues associated with the HTE download or correspondence with existing utility demand forecasts. o Review and input to various allocation factors associated with the assignment of common costs and other costs to various utilities, functional portions of the utility system, or customer classes. HDR Responsibilities • Annually import historical revenue and expense data from City's financial database. • Annually, update water production and wastewater treatment volumes, and customer count and water use data from monthly billing summaries from Water Department. • Every three years, import customer count and water use data from HTE and update customer profiles. • Update Capital Improvements Plan project data at mid -year or beginning FY. • Reconcile model forecast with budget data. • Review water use and financial forecasts with City staff. • Develop rate proposal for staff review • Coordinate rate proposal with City Council Review RWCA calculation of City staff. Exhibit B Page3of3 H:\ HOME \KEV INS \GEN\ WATER \UtilityRateAna lys is\AEAmd5SEr. doc Amendment No. 5 Contract Summary Section II. Scope of Services is amended to have Subsection L. Task 12 read: II. SCOPE OF SERVICES N. Task 14 — On Call Services The Consultant will provide on call services for utility financial planning, assistance in rate determination, wholesale customer mediation, expert testimony, and other utility related matters dealing with planning, finance and growth management. Examples of anticipated services that may be required are listed following the Summary of Fees Table. Additional services will be undertaken upon request, but any service requiring an increase in fees will be evidenced in writing as an additional amendment to this contract. Section III. Fees Authorized is amended to read as follows. III. FEES AUTHORIZED The City will pay the Consultant a total not to exceed fee of $484,690.00. The fee consists of an original contract fee of $255,790.00, an Amendment No. 1 fee of $24,500.00, an Amendment No. 2 fee of $24,000.00 and an Amendment No. 3 fee of $36,000.00 and an Amendment No. 4 fee of $44,400.00 and an Amendment No. 5 fee of $100,000.00. The table "Summary of Fees" shall be used when calculating the fee due for the proportion of services completed. Summary of Fees: Exhibit B Page 1 of 3 H: \ HOME \KE V I NS\GEN \WATER \Uti IityRateAna IysisAEAmd 5Sur2Fg)E_doc Original Contract A Task 1 — Data Gathering and Initial Policy Guidance 9,808 B. Task 2 — Evaluate Customer Use and Production Data 10,664 C. Task 3 — Existing /Projected Cost of Service 25,358 D. Task 4 — Develop Improved Model 34,348 E. Task 5— Assess Miscellaneous Service Fees 12,071 F. Task 6 — Determine and Allocate Revenue Requirements 15,835 G. Task 7 — Adequacy of Existing Rates and Alternative Rate Desi. ns 10,825 H. Task 8 — Model Training and Transfer 11,135 I. Task 9 — Reporting 17,410 J. Task 10 — Coordination 80,276 Labor Subtotal 227,730 Travel, Per Diem, Printing & Reproduction 8,060 Subcontractor Expense (Collier, Johnson & Woods) 20,000 Original Contract Total $255,790 Amendment No. 1 K. Task 11 - Resolution of Customer Billing Data 24,500 Amendment No. 1 Total 24,500 Amendment No. 2 L. Task 12.1 - Gas Utility Rate Study /Model — Phase 1 24,000 Task 12. 2 - Gas Utility Rate Study /Model — Phase 2 TBA Task 12.3 - Implementation of Gas Marketing Strategies TBA Amendment No. 2 Total $24,000 Amendment No. 3 Exhibit B Page 1 of 3 H: \ HOME \KE V I NS\GEN \WATER \Uti IityRateAna IysisAEAmd 5Sur2Fg)E_doc L. Task 12.1 - Gas Utility Rate Study /Model — Phase 1 Previously Authorized Task 12. 2 - Gas Utility Rate Study /Model — Phase 2 26,000 Task 12.3 — Implementation of Gas Marketing Strategies 10,000 Amendment No. 3 Total $36,000 Amendment No. 4 M. Task 13 - Additional Coordination Meetings 44,400 Amendment No. 4 Total $44,400 N. Amendment No. 5 Task 14 — On Call Services $100,000 Amendment No. 5 Total $100,000 Amended Total $484,690 ANTICIPATED ON -CALL SERVICES UPDATES OF THE CITY'S UTILITIES FINANCIAL PLANNING MODEL As requested, HDR will assist the City annually or semi - annually in the update of its utilities financial planning model. This would include updates of actual, estimated, and prospective utility expenses and revenues; customer count and service use information; water diversion and treatment volumes, wastewater treatment volumes, outstanding /pending debt, CIP data, inter - fund transfers, and other information needed to define pending utility expenses, revenue requirements, and desired rate design and pricing levels. There are four utilities to be assessed, and many possible issues surrounding each utility. It is understood that this effort may involve multiple iterations of data requests or model runs to address any data quality, changed- conditions circumstances, or alternative scenario forecasts. The degree of needed coordination may also vary from utility to utility and may involve additional coordination efforts that may be needed to address special issues. It is also uncertain what degree of data collection, model runs, and coordination efforts may be needed to accommodate possible changes in the City's fiscal year and /or timing of CIP adoption. It is also understood that HDR will periodically need to expend additional efforts obtaining and compiling a detailed download of the City's customer billing information for purposes of updating customer consumption profiles every several years. Exhibit A lists various responsibilities of City Staff and HDR in periodically updating the model. LAS BRISAS NEGOTIATION AND RATE DETERMINATION SUPPORT As needed, HDR will provide support to the City in evaluation of the potential Las Brisas agreements and determination of a blended raw water rate for water delivered to the port. This would involve review of contract terms, development of appropriate cost center accounting, and delineation of two new rates for raw water delivered to the port (with and without capital charges), as well a determination of a source of revenue to pay for oversizing costs. WHOLESALE CUSTOMER MEDIATION SUPPORT As needed, HDR will provide technical, coordination, and negotiation support in the pending mediation efforts with NCWCID #4. This could include the provision of data, developing technical evaluations and arguments, and expert support during the mediation itself. TCEQ EXPERT WITNESS SUPPORT As needed, HDR will provide technical, coordination, and negotiation support in the pending TCEQ complaint by NCWCID #4. This could include the provision of data, developing technical evaluations, and expert support during the Commission proceedings and administrative hearing. H: \HOME\KEVINS \GEN\ WATER \UtilityRateAnalysis\ EAmd5 ugthB.doc Exhibit B Page 2 of 3 MISC. UTILITY PLANNING, FINANCE, AND GROWTH MANAGEMENT SUPPORT As needed, HDR can provide the City will expert support on other utility funding and finance issues, such as exactions and dedications policy, impact and service fees, water accounting and metering issues, demand forecasting, water conservation, drought management, and other utility planning and finance issues that affect funding and efficiencies, and performance. Staff Responsibilities • Provide, within 30 days of the data request, a formatted download of HTE customer and water use information that reconciles with monthly billing summaries +/- 5% • Provide, within 7 days of availability, a formatted download of water and wastewater revenue and expense information, including 2 complete fiscal years of audited actuals, the amended or estimated year- ending budget for the current fiscal year, and proposed budget numbers for the pending fiscal year. • Provide within 7 days of availability, the proposed water and wastewater capital improvements program including list of projects recommended to be funded, anticipated year of funding, and anticipated cost. • Provide within 7 days of the data request, a download of water and wastewater utility debt by type of debt, series number, principal and interest payments by date by series, and percent water and wastewater funding of each bond series. • Conduct annual update of raw water charge. • Provide support, as needed, for HDR to: o interpret and incorporate changes in the budget or capital improvements program as it may affect the model structure or annual budgeted amounts. o reconcile any quality issues associated with the HTE download or correspondence with existing utility demand forecasts. o Review and input to various allocation factors associated with the assignment of common costs and other costs to various utilities, functional portions of the utility system, or customer classes. HDR Responsibilities • Annually import historical revenue and expense data from City's financial database. • Annually, update water production and wastewater treatment volumes, and customer count and water use data from monthly billing summaries from Water Department. • Every three years, import customer count and water use data from HTE and update customer profiles. • Update Capital Improvements Plan project data at mid -year or beginning FY. • Reconcile model forecast with budget data. • Review water use and financial forecasts with City staff. • Develop rate proposal for staff review • Coordinate rate proposal with City Council • Review RWCA calculation of City staff. Exhibit B Page 3 of 3 H: \HO ME\KE V I NS \GEN\ WATER \UtilityRateAn alysis W EAmd5SumExh B.doc -257- 23 AGENDA MEMORANDUM DATE: December 16, 2008 SUBJECT: Corpus Christi International Airport Drainage Phase 6 — Pipeline Adjustments (Project 10020) AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute an agreement for adjustment of a six -inch (6 ") and ten -inch (10 ") pipeline in an amount not to exceed amount of $370,645.00 with NuStar Logistics, L.P., of San Antonio, 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. t firog Fred Segundo — Kevin R. Powers Interim Director of Engineering Service Director of Aviation Attachments: Exhibit A - Additional Information Exhibit B - Reimbursement Agreement Exhibit C - Site Map H: HOMEV(EVINS \GEN\ AIR_ restored\ 20041mprovements\ TaxiwayRehab& DrainageVI \Pipelines\AwdMemoNuStar.doc —261— 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. Three of the pipeline companies identified have previous submitted relocations agreements that were approved by Council on November 11, 2008 in an amount totaling $335,933.50. Those pipeline companies identified were: • Copano Pipeline — 1 ea. 6 -in, pipeline; • Crosstex Natural Gas Transmission Ltd. — 1 ea. 6 -in. pipeline; • South Shore Pipeline — 1 ea. 8 -in. pipeline. The remaining pipeline company (NuStar Logistics) has finalized their relocation estimate and delivered the relocation agreement for Council approval. Their estimated relocation cost of $370,645.00 includes a contingency allowance of 20% or $61,744.00. 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 Exhibit "A" Page 1 of 2 HAHOME KEVINS\ GEMAIR _restoredt20041mprovements \Taxis gyhab& DrainageV( \pipelines\AwdNuStarBkgExhA.doc Capital Budget Adopted by Ordinance No. 027546 to increase appropriations by $2,234,346.00; and declaring an emergency. (Ord. No. 027747) 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). November 11, 2008: 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 (M2008 -285). 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 (M2008 -286). 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 (M2008 -287). FUTURE COUNCIL ACTION: 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 H: HOME KEVINS \GEN\AIR_ restored \20041mprovements \Taxiw2t2 hab& DrainageVl \Pipelines\AwdNuStarBkgExhA.doc RELOCATION AGREEMENT WHEREAS, NuStar Logistics, L.P. (" NuStar') owns and operates a ten -inch (10 ") products pipeline known as the Valley Pipeline pursuant to rights granted under a Texas Department of Transportation permit dated October 28, 2004 and a six -inch (6 ") pipeline pursuant to the rights granted under a City of Corpus Christi easement dated June 3, 1965 (the "Pipelines "), both traversing the right of way of FM 763 and Corpus Christi Airport ("Property), respectively, located in the Enriquez Villareal Survey, Abstract 1, Nueces County, Texas. WHEREAS, the City of Corpus Christi ("the City ") intends to develop the Property; AND WHEREAS, the City desires NuStar to relocate the Pipelines for the planned development of the Property and; WHEREAS, NuStar has agreed to relocate the Pipelines subject to certain terms and conditions as set forth in this Relocation Agreement (the "Agreement "). Now, therefore, for and in consideration of Ten and No /100 Dollars ($10.00) and other good and valuable consideration, the sufficiency of which is hereby acknowledged, NuStar and the City (collectively the "Parties ") agree to the following: 1. NuStar will relocate the Pipelines, the location of which is depicted on the preliminary survey attached hereto as Attachment 1. The City agrees to enter into a new Right of Way Easement or amend, modify and restate the Easement, whichever is deemed necessary for NuStar's future operation and maintenance of the Pipelines. 2. All costs incurred by NuStar in connection with the relocating of the Pipelines, including the new Contract or Amendment, shall be the responsibility of the City. These costs will include expenses incurred in relocating the Pipelines on adjacent lands as necessary. A detailed Cost Estimate for the relocation project is attached hereto as Attachment 2. During 'the relocation work, NuStar will provide to the City written notice of any amount to exceed ten percent (10 %) as set forth in Attachment 2. 3. NuStar will provide the City approximately 14 days prior written notice of its intent to initiate the relocation work. Within 7 days thereafter, the City shall make advance payment to NuStar of the estimated project cost as set forth in Attachment 2. Such payment shall be delivered via an overnight carrier to: NuStar Logistics, L.P. Attention: Right of Way Department Manager 2330 N Loop 1604 W San Antonio, Texas 78248 Within 7 days after such payment is made and received by NuStar, NuStar shall commence the relocation work and shall diligently pursue such work to completion. 4. Within sixty (60) days after completing the relocation work, NuStar shall provide the City with a final invoice reflecting the total cost incurred by NuStar in connection Exhibit B Page 1 of 7 —264— with the relocation project. If the actual costs incurred by NuStar are less than the amount set forth in Attachment 2, NuStar shall, in conjunction with the delivery of such final invoice, reimburse the City the difference between the advance payment (excluding General and Administrative fees) and the actual cost incurred. If the actual costs incurred by NuStar exceed the amount set forth in Attachment 2, the City shall, within 30 days of receipt of the final invoice, reimburse NuStar for the difference between the advance payment and the actual cost incurred. Any monies paid by the City to NuStar prior to the completion of the relocation work shall be deducted from the final invoiced amount. On the 31st day, any outstanding balance not paid shall begin to accrue interest at the rate of ten percent (10 %) per annum. 5. If NuStar should employ an attorney or attorneys to enforce the terms as set forth in Paragraph 4 through such actions or suits as provided by law, then the City shall be responsible to pay to NuStar, in addition to damages, all court costs and reasonable attorney's fees incurred in connection therewith. 6. Upon completion of the relocation of the Pipelines and upon receipt of the reimbursement of the costs associated with the project, NuStar and the City will execute the document as required under Paragraph 1. 7. THE CITY AGREES TO HOLD HARMLESS AND UNCONDITIONALLY INDEMNIFY NUSTAR, ITS EMPLOYEES, CONTRACTORS, AGENTS, INVITEES AND OFFICERS FROM AND AGAINST ALL LIABILITY, COSTS, EXPENSES, CLAIMS, CAUSES OF ACTION, AND DAMAGES, TO THE EXTENT PERMITTED BY LAW, INCLUDING BUT NOT LIMITED TO PAYING THE COSTS OF DEFENCES AND ATTORNEY FEES AS INCURRED, WHICH NUSTAR MAY AT ANY TIME SUFFER OR SUSTAIN OR BECOME LIABLE FOR BY REASON OF ANY ACCIDENTS, DAMAGES, OR INJURIES EITHER TO PERSONS OR AGENTS OF EITHER PARTY, OR OF ANY OTHER PARTIES, OR TO THE PROPERTY OF THE CITY, OCCASIONED BY, OR IN ANY MANNER ARISING OUT OF OR FROM, OR RESULTING FROM OR RELATING TO NUSTAR'S RELOCATION OF THE PIPELINES. 8. The Parties have read this Agreement, understand its terms and conditions, and have voluntarily entered into this Agreement. 9. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas. 10. This Agreement contains the entire agreement between NuStar and the City. No oral 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. 11. This Agreement may be executed in multiple counterparts, each of which shall constitute an original and shall be binding on NuStar and the City only upon the execution of a counterpart by an authorized representative of NuStar and the City. Exhibit B Page 2 of 7 -265- 12. This Agreement shall be binding upon and inure to the benefit of each of the undersigned, their respective successors, assigns and legal representative. 13. Each signatory of this Agreement expressly states that he or she has the authority to sign this Agreement on behalf of their respective entity, and thereby bind the entity on whose behalf such signatory is executing this Agreement. Executed effective as of the day of , 20 . [signatures and acknowledgments contained on next page] —266— Exhibit B Page 3 of 7 City of Corpus Christi NuStar Logistics, L.P. By and through its general partner, NuStar GP, Inc. By: By: Printed Name: Printed Name: Title: Title: STATE OF TEXAS ) COUNTY OF NUECES ) Before me the undersigned Notary Public on this day appeared , as of the City of Corpus Christi, known to be to be the person whose name is subscribed to the foregoing instrument and who acknowledged to me that he executed such instrument for the purposes and consideration herein expressed and as the act of such corporation. Given under my hand and seal of office this day of , 20 . Notary Public in and for the State of Texas STATE OF•TEXAS COUNTY OF BEXAR Before me the undersigned Notary Public on this day appeared as of NuStar GP, Inc., a Delaware corporation, general partner of NuStar Logistics, L.P., a Delaware limited partnership, known to be to be the person whose name is subscribed to the foregoing instrument and who acknowledged to me that he executed such instrument for the purposes and consideration herein expressed and as the act of such corporation and limited partnership. Given under my hand and seal of office this day of , 20 . Notary Public in and for the State of Texas —267— Exhibit B Page 4 of 7 9]WE. WMIEE 011.0 ��3311.09ii�A !IR Y MATCt 0 L NE # ST ]I 2 Y *0D E jELLry[Y ICI: Li 9, T Et:Y Et :,•• W L 2 fl. 9 ]9. 9 I. 39 A W v. i; .E9.'I qy I� Ze A5 ]9. 3 t/ Is I' A 99.9 39. 1 $ Q ` 39."T .. 5C r fixx` °8 8 I M.] d� IS 1 Ii: I ? $ 1!9.9 25.5 n. n 111 • f le. a L1 :. r 88 ]9 J MATE!. L NE STI 37.0 2 Y K W E 2 4R oricapPrist u I. . 4rt CISCMIHM CAI] MUM 393OMIT(OY3 W].w T TAXIWAY REHABILITATION, TAXIWAY SIGNAGE /LIGHTING AND AIRFIELD DRAINAGE PHASE VI MAIN DITCH I (MD-Il REALIGMAENT PLAN AND PROFILE C C CITY of CORPUS CHRISTI TEXAS flap f pr E •Sneering SWrYIw9 ti 1 .¢ Lr+3WU1k)v7LLd *MO 40•1St inns a S e $ S. F TCH LI M! Yi STA 37 �w2 'Fe -1 2 .41;14: A- Iti 872 BI gg :s c R j al N LINE TA A6t0 it - 8 COL W1 2 6 revillet MUMMIES Riltib Ib 6k sYVLS Wllsn 08IWn011L.1]PP9 TAXIWAY REHABILITATION, TAXIWAY SIGNAGE /LIGHTING AND AIRFIELD DRAINAGE PHASE VI MAIN DITCH 1 IMD -f) REALIGNMENT PLAN AND PROFILE CITY of CORPUS CHRISTI TEXAS 0.pt of Enelneerin0 S.rv10v9 -169- TJ o z 3 Z1 R Page 6 of 7 U MATC • L NE # ST 4 31.0] $ S f 40. Si rt 9 —�. IA _ s.. 3112 _I 1 X19] 6 . 40n 2 lc 1 39.19 !9. ]9 .i9 .I.N H. 39.14 39.30 39. 00 MI 19.49 TS9 3e. 0 lY. ]1 37.g n. V 9 ( EI I � —SVI , I 1 _ — 3G9M R 3e, 74411 MM STA TR 3•. 39 • •' ... i }0 41• '. -T- Iill MI' 1 59 t 1;15 'G Ir. ,' 1]p' �1� ^:B v ` r.m• a v» f 1 y v v. < \ y y .19.9 _ r I ' I I. FF - - ;8f g6SE tF 1m 1 • f WY _ ^ I I I \ 4 ai vy n . .s I 1 1 ' ' I h.COE SYLE FL ITITI WIC L NE ST% 4S t01 8 C V Y S f S. F TCH LI M! Yi STA 37 �w2 'Fe -1 2 .41;14: A- Iti 872 BI gg :s c R j al N LINE TA A6t0 it - 8 COL W1 2 6 revillet MUMMIES Riltib Ib 6k sYVLS Wllsn 08IWn011L.1]PP9 TAXIWAY REHABILITATION, TAXIWAY SIGNAGE /LIGHTING AND AIRFIELD DRAINAGE PHASE VI MAIN DITCH 1 IMD -f) REALIGNMENT PLAN AND PROFILE CITY of CORPUS CHRISTI TEXAS 0.pt of Enelneerin0 S.rv10v9 -169- TJ o z 3 Z1 R Page 6 of 7 NuStar Logistics. LP Nueces County ATTACHMENT #2 SUMMARY UTILITY RELOCATION - COST ESTIMATE Total Material & Supplies $33,581 ROW $1,000 Labor $106,700 Transportation $440 Construction $144,000 Salvage /abandonment/removal $20,650 Miscellaneous $2,500 Sub total contingency (20 %) $308,871 $61,774 TOTAL PROJECT $370,645 -270- Exhibit B Page 7of7 \Mproject \CouncilExh10020c.dwg PROPERTY LOCATION 0 AGNES CORPUS _ CHRISTI INTERNATIONAL AIRPORT a LOCATION MAP NOT TO SCALE PROJECT # 10020 VICINITY MAP NOT ID SCALE EXHIBIT C Corpus Christi International Airport Drainage Phase 6 - Pipeline Adjustments -271- CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 12 -08 -2008 NNW — - ..w 24 CITY COUNCIL AGENDA MEMORANDUM Council Action Date: December 16, 2008 SUBJECT: Onyx Temporary Construction Easement at Cefe Valenzuela Landfill AGENDA ITEM: Ordinance granting a Temporary Construction Easement to Onyx Pipeline Company for a seventy foot (70') wide strip of land located across the northern end of the Cefe Valenzuela Landfill; authorizing the City Manager or designee to execute the Temporary Construction Easement and other related documents for the conveyance of the easement; and declaring an emergency. ISSUE: Onyx Pipeline Company is presently constructing a 23 mile long pipeline to the Barney M. Davis power plant owned by Topaz Power Management. The new 24 inch diameter pipeline is the sole fuel supply for the new turbines installed at the site. The pipeline meets and exceeds the standards of the Texas Railroad Commission and the Federal Department of Transportation. Authorization to grant easements and land rights from City land is required by City Council. FUNDING: No funding required. RECOMMENDATION: Staff recommends approval of the ordinance as presented. Kevin Stowers Interim Director of Engineering Services Attachments: Exhibit A. Background Information Exhibit B. Location Map Exhibit C. Ordinance H:WOME\EUSEBIOG \GEN\Agenda Items \Onyx Pipeline Easement RequestMAgenda Memorandum.TCE.doc —275— BACKGROUND INFORMATION SUBJECT: Onyx Temporary Construction Easement at Cefe Valenzuela Landfill BACKGROUND: Onyx Pipeline Company is presently constructing a 23 mile long natural gas pipeline to the Barney M. Davis power plant owned by Topaz Power Management. The plant is being retrofitted with new gas turbines which will be powered solely by a 24 inch pipeline. The new 24" pipeline will be constructed within an existing thirty foot (30') wide by 4,522.98 feet long (271.8 rods) easement which crosses the northern end of the City's Cefe Valenzuela Landfill. Onyx Pipeline has submitted a request for a Temporary Construction Easement from the City. Their existing Pipeline Easement instrument requires a payment of $1 per lineal rod by Onyx to the City for any additional lines placed within the existing easement. The City will receive $272.00 as compensation for the new pipeline. An amount for crop damages will be payable directly to the City's farming tenant, Rackley & Rackley. The permanent 30 foot wide pipeline easement and the requested 70 foot construction easement cross the City's landfill as shown on the attached Exhibit B. Onyx Pipeline will restore the surface to its original condition upon completion of the pipeline construction. The Texas Commission on Environmental Quality (TCEQ) has been notified concerning the temporary construction easement on the landfill property. The City's Landfill Permit +will not be affected by the pipeline construction and requires no regulatory permit from TCEQ. PRIOR COUNCIL ACTIONS: 1. September 12, 2000 - Motion authorizing the City Manager or his designee to exercise an Option to Purchase for acquisition of 2,273.59 acres from Mr. John O. Chapman, Jr. for the amount of $5,021,109, including closing costs, for the development of the new Cefe F. Venezuela Landfill. (Motion No. 2000 -323) 2. July 15, 2003 - Resolution authorizing the City Manager, or his designee, to execute a Local Project Advanced Funding Agreement for Voluntary Transportation Improvement Project with the Texas Department of Transportation (TxDOT) governing the construction of a proposed drainage culvert on FM 70 to serve the future development of Cefe Valenzuela Landfill in the amount of: a. $16,000.000 for preliminary engineering; and b. $900,000.00 for construction 3. December 21, 2004 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 10 for engineering services with Shiner, Moseley & Associates, Inc. in the amount of $222,000 for the finalization of plans for Cefe F. Valenzuela Landfill. 4. January 25, 2005 - Motion authorizing the City Manager, or his designee, to increase the escrow funding with the Texas Department of Transportation (TxDOT) in the amount of $157,482.45 for the construction of a proposed drainage culvert on FM 70 to serve Cefe Valenzuela Landfill. 5. March 29, 2005 - Approval of the FY2004 Capital Budget, Ordinance No. 022188. EXHIBIT A Page 1 of 3 —276— 6. August 30, 2005 — a. Motion authorizing the City Manager, or his designee, to execute a construction contract in the amount of $14,875,294.00 with Longhorn Excavation, Inc., of Richmond, Texas for the Cefe F. Valenzuela Landfill Site Development Project (M2005 -308). b. Motion authorizing the City Manager, or his designee, to execute a materials inspection, testing and laboratory services contract in the amount of $283,059.50 with Kleinfelder of Corpus Christi, Texas for the Cefe F. Valenzuela Landfill Site Development Project (M2005 -309). 7. October 25, 2005 - Motion authorizing the City Manager, or his designee, to approve an aid to construction in the amount of $196,540.00 with Nueces Electric Cooperative to extend electrical power to the Cefe F. Valenzuela Landfill Site Development Project (M2005 -370). 8. December 13, 2005 - Motion authorizing the City Manager, or his designee, to execute Change Order No. 1 to increase the Enterprise Products pipeline adjustment allowance in the amount of $159,965.00 with Longhorn Excavation, Inc., of Richmond, Texas for the Cefe F. Valenzuela Landfill Site Development Project. 9. May 16, 2006 - a. Motion authorizing the City Manager, or his designee, to execute Change Order No. 6 for the excavation and transport of overfill from J. C. Elliott Landfill Sector 9 to Sector 11 in the amount of $547,500.00 with Longhorn Excavation, Inc., of Richmond, Texas for the Cefe F. Valenzuela Landfill Site Development Project (M2006 -143). b. Motion authorizing the City Manager, or his designee, to execute a work order with BFI Waste Services of North America, Inc., of Scottsdale, Arizona, in the amount of $848,400.00 for the spread, compaction and cover of overfill from Sector 9 delivered to Sector 11 of J. C. Elliott Landfill in accordance with the terms of the Landfill Services Agreement (M2006 -144). 10. May 18, 2006 — Ordinance by the City Council of the City of Corpus Christi providing for the issuance of City of Corpus Christi, Combination Tax and Solid Wastes Revenue Certificates of Obligation, Series 2006, in an amount not in excess of $20,000,000 and ordaining other matters related to the subject (Ord. No. 026783). 11. December 18, 2007 — Ordinance adopting the FY2007 -2008 Capital Improvement Budget and Capital Improvement Plan. 12. January 8, 2008 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 1 to an engineering services contract with Chiang, Patel & Yerby, Inc. of Dallas, Texas in the amount of $147,000.00 for a restated not to exceed fee of $197,000.00 for design, bid and construction phase services for construction of disposal Cells 4A and 4B at Cefe Valenzuela Landfill (M2008 -005). 13. May 27 2008 — a. Motion authorizing the City Manager, or his designee, to execute a contract with Longhorn Excavators, Inc. of Richmond, Texas in the amount of $2,369,450.00 for construction of Cefe F. Valenzuela Landfill Section 4A Liner & Leachate Collection System and Section 4B Excavation (M2008 -128). b. Motion authorizing the City Manager, or his designee, to execute a contract engineering materials testing services with Kleinfelder, Inc, of Corpus Christi, Texas, in the amount of $262,466.00 for construction of Cefe F. Valenzuela Landfill Sect EXHIBIT A Page 2 of 3 —277— 4A Liner & Leachate Collection System and Section 4B Excavation project (M2008- 129). 14. July 8, 2008 - 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 $100,400.00 for Cefe Valenzuela Landfill Leachate Ponds Groundwater Monitoring System (M2008 -167). 15. July 22, 2008 - Motion authorizing the City Manager, or his designee, to execute Change Order No. 1 for additional excavation and installation of a groundwater underdrains in the amount of $231,399.00 with Longhorn Excavators, Inc., of Richmond, Texas for the Cefe F. Valenzuela Landfill Section 4A Liner & Leachate Collection System and Section 4B Excavation (M2008 -185). 16. September 9, 2008 - Motion authorizing the City Manager, or his designee, to execute Change Order No. 2 for leachate pond service roadways, containment pond, culverts, and roadway repairs in the amount of $297,986.35 with Longhorn Excavators, Inc., of Richmond, Texas for the Cefe F. Valenzuela Landfill Section 4A Liner & Leachate Collection System and Section 4B Excavation (M2008 -236). 17. October 21, 2008 - 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 $59,602.00 for the Cefe F. Valenzuela Landfill Section 4A Liner & Leachate Collection System and Section 4B Excavation for sump modifications — Project # 5225. (M2008 -274) PRIOR ADMINISTRATIVE ACTION: 1. December 14, 2005 — Approval of Change Order No. 2 to decrease pay allowance by $40,000.00 for the Duke Energy pipeline adjustment. 2. December 28, 2005 - Approval of Change Order No. 3 in the amount of $13,800.00 to increase allowance for Onyx Energy pipeline adjustment (Pay Item 21). 3. January 25, 2006 — Approval of Change Order No. 4 in the amount of $24,570.00 to provide and install 6,5001.f. of 5- strand barbed wire fence with galvanized T -posts and two comers. 4. March 31, 2006 — Approval of Change Order No. 5 in the amount of $16,547.53 for various civil, mechanical, architectural, and pipeline adjustments. 5. January 3, 2008 — Award of an engineering services contract to HDR, Inc. of Corpus Christi, Texas in the amount of $50,000.00 for Preliminary and Initial Design Services for Cefe Valenzuela Landfill Disposal Cells 4A and 4B. 6. February 10, 2008 — Award of Amendment No. 2 to the engineering services contract to HDR, Inc. of Corpus Christi, Texas in the amount of $20,500.00 for a restated not to exceed fee of $217,500 for surveying services associated with the storm water disposal pond for Cefe Valenzuela Landfill Disposal Cells 4A and 4B. 7. March 24, 2008 - — Award of Amendment No. 3 to the engineering services contract to HDR, Inc. of Corpus Christi, Texas in the amount of $49,730.00 for a restated not to exceed fee of $267,230 to separate bid and contract documents to permit early award of Cefe Valenzuela Landfill Disposal Cell 4A and a subsequent separate award of Cell 4B. FUTURE COUNCIL ACTION: None —278— EXHIBIT A Page 3 of 3 \Mproject \councilexhibits \cefepipeasement. dwg 2 8 • CABANISS FIELD • 0 iv 40 LL F.N. 43 NUECES COUNTY F.M. 43 F.M. 665 FM 2444 F.M. 8 F.M. 14 16 FM 2444 F.M. 16 CEFE F. VALENZUELA MUNICIPAL LANDFILL LOCATION MAP NOT 70 SCALE CO RD 18 F.M. 20 EXISTING 30' EASEMENT EXISTING PIPELINE PROJECT SITE 1 CEFE F. VALENZUELA MUNICIPAL LANDFILL 2,293 ACRES SITE LOCATION MAP NOT 70 SCALE PROPOSED PIPELINE CO RD 59 F.M. 2444 EXHIBIT "B" ONYX Pipeline Co. Temporary Construction Easement at Cefe Valenzuela Landfill -779- CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 12 -08 -2008 __ ORDINANCE GRANTING A TEMPORARY CONSTRUCTION EASEMENT TO ONYX PIPELINE COMPANY FOR A SEVENTY FOOT (70') WIDE STRIP OF LAND LOCATED ACROSS THE NORTHERN END OF THE CEFE VALENZUELA LANDFILL; AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE TEMPORARY CONSTRUCTION EASEMENT AND OTHER RELATED DOCUMENTS FOR THE CONVEYANCE OF THE EASEMENT; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. A temporary construction easement is granted to Onyx Pipeline Company for a seventy foot (70') wide strip of land located across the northern end of the Cefe Valenzuela Landfill, Texas. SECTION 2. The City Manager and /or designee are authorized to execute the Temporary Construction Easement and other related documents necessary to convey the Easement. 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 16th of December, 2008. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Henry Garrett Mayor APPROVED AS TO FORM: 08 -D 008 By: M Veronica Ocanas Assistant City Attorney for City Attorney 121608 ORD Granting TCE to Onyx Pipeline —280— 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon 121608 ORD Granting TCE to Onyx Pipeline -281- DEPARTMENT OF ENGINEERING SERVICES PROPERTY AND LAND ACQUISITION DIVISION Onyx Pipeline Temporary Construction Easement THE STATE OF TEXAS KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES THAT the City of Corpus Christi ( "Grantor ") , of 1201 Leopard, Corpus Christi, Nueces County, Texas 78469 -9277, in consideration of Ten Dollars ($10.00) and other good and valuable consideration, paid by Onyx Pipeline Company, a Texas corporation ( "Grantee "), of 802 North Carancahua, Suite 575, Corpus Christi, Nueces County, Texas, 78470, the receipt of which is hereby acknowledged, has conveyed, and does convey unto Onyx Pipeline Company, a Texas corporation, its successors and legal representatives, the free and uninterrupted use, liberty, privilege, and easement of going in, on, over, under and along a certain tract of land situated in Nueces County, Texas, and being described as follows: A map showing the location of the Temporary Construction Easement is attached and incorporated as "Exhibit A ". SPECIAL PROVISIONS: 1. Upon completion of the project, Grantee's contractor will restore the land to it's original condition. 2. All other structures, improvements, and fencing that are to be moved during construction will be placed back to their original locations and condition. 3. During the construction period, free ingress and egress will be maintained to the property described above. 4. Prior to construction across City property, the Grantee will provide to Grantor in writing that the insurance requirements have been met as shown on "Exhibit B ". 5. Grantee shall hold harmless and indemnify Grantor against any and all claims resulting from Grantee's use of the premises. Grantee shall pay any damages associated with it's, or its agents negligence or breach of any item or condition of this agreement related to Grantee's use of the easement. TO HAVE AND TO HOLD, ALL AND SINGULAR, the rights and privileges aforesaid to Onyx Pipeline Company, a Texas corporation, it's successors and legal representatives, for use as a Temporary Construction Easement and Right -of -Way during the duration of the installation of one pipeline in the adjoining easement. H: \HOME\NORMAR\PROJECT\MISC. INSTRUMENTS \ONYX PIPELINE.DOC Pagel of -282- Grantor CITY OF CORPUS CHRISTI, TEXAS P. O. Box 9277 City Hall, 1201 Leopard, THIRD FLOOR Department of Engineering Services PROPERTY AND LAND ACQUISITION DIVISION Corpus Christi, Texas 78469 -9277 Kevin Stowers, Interim Director Department of Engineering Services THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on , 2008 by Kevin Stowers as Interim Director of Engineering Services of the City of Corpus Christi, a Texas municipal corporation, on behalf of said corporation. (Seal) Notary Public in and for the State of Texas Grantee Onyx Pipeline Company, a Texas corporation By: (Signature) Print Name: &at1 `,C/ 3& f v�N r�Gl,.- Print Title: Pre 5 t de r\'1' U H: \HOMEWORMAR\PROJECT \MISC. INSTRUMENTS \ONYX Pj gLTE.DOC Paget of L THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on Ilecembez S , 2008 by (CLN \U even' \1ct , as PR�■C�en�" of Onyx Pipeline Company, a Texas corporation,, on behalf of said corporation. [Seal] Notary Publi in and or the State of Texas LYNN DORNBUSCH Notary Public State of Texas My Comm. Exp. 02/15/2009 APPROVED AS TO LEGAL FORM, THIS x ]� DAY OF FOR THE CITY ATTORNEY By: Nil/d Veronica Ocaiias, Assists City Attorney H: WOME\NORMAR \PROJECT\MISC. INSTRUMENTS\ONYX PIPELINE.DOC Page 3 of 5 —284— x,2008. .eaa.:Gfla..... EXHIBIT "A" SNOWING THE PLACEMENT OF A PROPOSED 24• HIGH PRESSURE GAS LINE WITHIN AN EXISTING 0D' WIDE PIPELINE EASEMENT AS RECORDED IN VOL. 764, PO. no, D.R.N.C.T., OAF LAAND DEEDED .70 TO WIDE D CITY CORPUS CONSTRUCTION EASEMENT ACROSS A TRACT LANDFILL AS RECORDED N DOCUMENT /20000 OAN KNOWN THE CEFE VALENZUELA nr 1444 pi0' R:aW4 • - -P= 1E us rIa ugd (Id 101.) Neat 1+I00' 1 LAURELED FARM TRACTS SECTION X16 MAJORS. CEFE / VALENZUELA LANDFILL SITE CITY OF CORPUS CHRISTI DOC #2000038832 O.R.N.C.T. EPI TIID it PIPLUNE 14' MU NE Po 1 _COUNTY 14' (4C I.0.19. Cyr, Riad IMara WWI*LP. Erre tPtes IYtc1014169 PN PMat NDVdIIa42O71 MOAN t101540 paonAmoRp AuflIflImom -285- 0 ODD OPARICrALN,n iniaMOUITMagui A. Loss not i st wines wok rode! S epweni t MW ell boon. swim. bads b flue ekbhed S oak ibis W WO mss by the Cky. IS Law not set slew el se et to as verbal. gMlrYt ban moist etas MtieaiM0e lU bow se Sabot lam sstfn- tee il( /,e1YtMrsbst,tsgoasetoSselmsste, dowbe t1M Wore esomp y bosoms awspnyp) asp_Mt M tks CW. Rkk MIPS Cky boss. am Wand bed mho eombosdYsbarob..amdoptsa Orgr4MSlRsltl4'pM4.A11rdnt S aannunms 11111111101111111makos mime =�e1irrai iNklbdawrYlY arrows. s leMolierte silmin erpAdesa - >1sbil7me1>tiprdlrti COMINSWAL $. 011111241, 2, Pasha -Opts OespollOputsla Nrms I. Cammi as R MOSS =mow 7. t7MwwM LIMO whim naval if assOCOMINID pRlot war • . AMMONIA Om d, IresenswMehwb N,22** MY C012WLM7 • WSW COSQhINAllON ®QLOVIIII'L1A1DifY • winvannas manna mums COMINIAININ AMMO &WAGNMNR OETWO Immo FOLUMION 1iA1MilTf arlil it a adios, _ate seMnwtt dIsetMtlwamedof f1+t1RMN p1RCOt macs C. Istltbnoofs ldwdsofeirkW,iksiatsssboa OsRkk Moe wave* doll spons.fs:i ienewkldmws(11)dgeel ay sago. aaManw •tmowm..eagrowutarmana ihkftwa - EXHIBIT B -286- 25 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 12/16/08 AGENDA ITEM: A motion authorizing the City Manager, or his designee, to execute a compliance agreement with the Texas Commission on Environmental Quality to address closure procedures for the J. C. Elliott Landfill. ISSUE: Closure of the J. C. Elliott Landfill must commence. REQUIRED COUNCIL ACTION: Authorize execution of the compliance agreement with the Texas Commission on Environmental Quality. PREVIOUS COUNCIL ACTION: None. CONCLUSION AND RECOMMENDATION: Staff recommends authorization of the execution of the compliance agreement. Attachments: Compliance Agreement -289- Lawrence MIcofajcz Acting Director Solid Waste Department cw.,„.e.i /VU BACKGROUND INFORMATION With the opening of the City's new Cefe Valenzuela Landfill, the City ceased accepting waste at the J. C. Elliott Landfill ( "Elliott") on November 10, 2007. Following this date, the City was required to conduct all activities related to the final closure of Elliott. However, due to the anticipated cost of full completion of final closure construction activities and the resulting downturn in the bond market, the City was unable to take the steps to begin final closure activities. The City negotiated with the Texas Commission on Environmental Quality ( "TCEQ ") to allow the City additional time in which to price, issue, and sell the bonds necessary to fully fund Elliott's final closure activities. The attached compliance agreement sets out the timeline approved by TCEQ for final closure activities to be completed at Elliott. —290— COMPLIANCE AGREEMENT The City of Corpus Christi, Texas J.C. Elliott Landfill Type 1 Municipal Solid Waste Landfill in Nueces County, Texas Permit No. MSW -423B THIS COMPLIANCE AGREEMENT is made and entered into by the Executive Director ( "ED ") of the Texas Commission on Environmental Quality ( "TCEQ" or the "Commission ") and the City of Corpus Christi, Texas (the "City"). I. RECITALS 1. TCEQ is the state agency charged with enforcing the Texas Solid Waste Disposal Act, TEX. HEALTH & SAFETY CODE Chapter 361 (the "Code "), and the regulations promulgated pursuant to the Code. 2. The City owns a Type I municipal solid waste ( "MSW ") landfill, known as the T.C. Elliott Landfill (the "Elliott Landfill "), located at 7001 Ayers Street in Corpus Christi, Nueces County, Texas, Permit No. MSW -423B. 3. The City ceased acceptance of waste at the Elliott Landfill on November 10, 2007. 4. The City published public notice on March 25, 2008, in the Corpus Christi Caller Times stating that the Elliott Landfill was no longer accepting waste and directing waste disposal customers to either the City's Cefe Valenzuela Landfill or its Elliott Transfer Station. 5. The City placed a sign at the Facility entrance informing waste disposal customers that the Elliott Landfill is no longer accepting waste and directing them to either the City's Cefe Valenzuela Landfill or its Elliott Transfer Station. 6. The City was issued a permit modification on May 23, 2008, which allowed for a permanent height increase during closure activities at the Elliott Landfill. II. TERMS AND CONDITIONS In order to effectuate the purposes of the Texas Solid Waste Disposal Act and related regulations the provisions of this Compliance Agreement are as follows: 1. The City shall sell bonds dedicated to final closure of the Elliott Landfill on or before December 31, 2008. —291— Compliance Agreement The City of Corpus Christi Page 2 2. Within thirty (30) business days of completion of the bond sale, the City Council shall approve the commencement of final closure activities. 3. Within sixty (60) days of the City Council approval of final closure activities, closure construction shall begin. 4. Closure construction shall be completed within 180 days of initiation. 5. Should unforeseen circumstances, including force majeure, indicate a need to alter the above - mentioned schedule, the City shall immediately notify TCEQ and request an amendment of this Compliance Agreement. 6. So long as the City remains in full compliance with the terms of this Compliance Agreement, TCEQ shall not initiate any enforcement action related to the Elliott Landfill closure activities covered by this Compliance Agreement. 7. All notices and communications hereunder shall be in writing and shall be given by United States registered mail or certified mail, with retum receipt requested, postage prepaid, or by United States Express Mail (or other overnight delivery service such as Federal Express) or courier service to the parties at the following addresses: If to TCEQ: Mr. John Sadlier Deputy Director Enforcement Division (MC -172) Texas Commission on Environmental Quality P.O. Box 13087 Austin, Texas 78711 -3087 If to the City: With a copy to: Mr. Lawrence Mikolajczyk Acting Director Streets and Solid Waste Services 2525 Hygeia Street Corpus Christi, Texas 78415 Ms. Elizabeth Hundley Assistant City Attorney City of Corpus Christi 1201 Leopard Street Corpus Christi, Texas 78401 —292— Compliance Agreement The City of Corpus Christi Page 3 8. The effective date of this Compliance Agreement is the date last executed by both parties. Acceptance of the terms of this Compliance Agreement is indicated by the signatures below. Authorized Representative of the City of Corpus Christi Title Date dlier, Deputy Director Date of Compliance & Enforcement Texas Commission on Environmental Quality —293— 26 Page 1 of 1 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 12/16/2008 AGENDA ITEM: REVISING SECTION 14 -222 (b)(3), REQUIRED INSPECTIONS, CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, TO CHANGE THE TIME PERIODS REQUIRED FOR ELECTRICAL RE- OUT INSPECTIONS; PROVIDING FOR PUBLICATION; PROVIDING FOR SEVERANCE; PROVIDING FOR PENALTIES; AND PROVIDING AN EFFECTIVE DATE. ISSUE: Currently the local amendments require an electrical re-out inspection for commercial buildings if the energy has been disconnected for a period more than twenty -four (24) hours, except on weekends and holidays. The re -out inspection requirement for residential buildings is required after energy has been disconnected for six (6) months. The Electrical Advisory Board and Building Services staff recommend that the triggers for re-out electrical inspections be changed for commercial buildings from twenty -four (24) hours to five (5) days and the residential buildings re-out inspection would change from six (6) months to three (3) months. CONCLUSION AND RECOMMENDATION: Approve recommended changes to Chapter 14 Section 14 -222 (b) (3) a and b, Code of Ordinance. Fai Bob Nix, AICP�` Assistant City Manager for Development Services Attachments: Exhibit A: Exhibit B: Exhibit C: Background Information Copy of the Electrical Advisory Board meeting dated May 22, 2008. Copy of the City of Corpus Christi's Chapter 14 Section 14 -222 (b) (3) —297— AGENDA MEMORANDUM BACKGROUND INFORMATION BACKGROUND: Several citizens of Corpus Christi have expressed some concern over the short window a business is allowed to have the electrical energy disconnected. The past practice pursuant to the present code of Chapter 14 Section 14 -222 requires an electrical inspection of a commercial building any time electrical energy was disconnected for a short window of twenty -four (24) hours. Citizens felt this was just not enough time for a building owner to make the transition of one tenant to another. After review of this issue with the Electrical Advisory Board, the Board also concurred and proposed a recommended change from twenty -four (24) hours to five (5) days. This change will provide building owners and tenants a better opportunity to control tenant relocations within their buildings. _ Based on the recommended changes there will be slight revenue shift between the commercial and residential activity. This is due to the expected decrease in commercial electrical re -out inspections and anticipated increase in residential electrical inspections because of the proposed code changes. However, at this point we have no data, and we are uncertain as to the actual revenue impact. Electrical re -out inspections accounted for approximately $60,500 in revenues during fiscal year 2007 -2008, or 3 % of the total permit/inspection revenue. If a commercial site receives a permit during or after the electrical disconnect has occurred, then the permit application would cover the fee originally charged for the re -out inspection. If a modification is made without a permit, then the investigation fee would be required. This is not a change from present processing. It is important to mention, when a building owner does have a new tenant for a commercial business location, and the new business applies for a permit to improve the space, the re -out inspection would be included and covered in the improvement without extra fees charged. If a new business tenant would like to ensure there have not been any previous unauthorized changes in the tenant space, a re -out inspection would cover any changes or illegal electrical work. —298— Exhibit A Page 1 of 1 Board Members Present: Members Absent: Staff Members Present: Electrical Advisory Board May 22, 2008 Minutes Lee Montgomery (Partial) Craig Loving Daniel Dibble Bhasker Patel Michael Riley Don Fretwell Billy Ashcroft Jared Merdes Tino Vasquez David Shiny Joe Elliott, Interim Building Official David Lewis, Chief Electrical Inspector Jay Reining, City's Legal Representative Sylvia Sanchez, Recording Secretary Call to Order: Motion was made by Don Fretwell and second by Billy Ashcroft to name Craig Loving as Pro Tempore; motion carried unanimously. Meeting was call to order by Craig Loving at 3:10 p.m. Approval of minutes for March 20, 2008: Motion was made by Billy Ashcraft and second by Daniel Dibble for approval of the minutes for meeting on February 21, 2008. Motion carried unanimously. 2008 National Electrical Codes: David reminded the board of their previous discussion, that it would be an easier transition for the city to adopt the 2005 code. Unfortunately adopting the 2005 code could create complications; the city will be behind the current level of activity. Mr. Lewis stated that the city management's direction is to adopt the 2008 NEC. The code is more compatible to the state and the study material that most electricians are receiving their CEUs is based on 2008 codes. Mr. Patel inquired about how many meetings does the board have to review the 2008 material and what timeline does the board have to address questions that might arise. David stated that the department will purchase the necessary study materials for board members to review (electronic, hardcopy, easy guide formats, and change guideline books). If the department receives the materials before the next board meeting staff will contact members to determine how materials will be distributed. Jay suggested purchasing the 2002 changes. It would be easier to review the current codes. Jay added that current ordinance can be viewed in the city's website by navigating to Development Services Department or can be viewed in the Municode website, select their online library, navigate to the state of Texas, select our city, and select chapter 14. Change in Local Amendments: David stated that the local amendment 14 -221 (b) (3) a. and b refers to re-out inspection. Currently the local amendments read that for commercial buildings a re-out inspection is required if the energy has been disconnected for a period more than twenty-four (24) hours, except on weekends and holidays; for residential buildings a re -out inspection is required if the energy has been disconnected for a period of more than six (6) months. David stated that the local amendments have been in place for approximately 30 years; staff is recommending a change to the local amendments due to changes in the market place and current safety issues. David added that currently San Antonio's addresses re -out inspections read "as necessary," they do not specify dates. Billy Ashcroft stated that San Antonio utility company is different than Corpus Christi; San Antonio electrical facility is run by the city of San Antonio and Corpus Christi is not. Mr. Patel stated that 6 months for residential seems too long. It could be Page 1 of 2 299— Exhibit B Page I of 2 that re-out inspections will not occur due to a residential home might only be vacant for 5 months or Jess. Not doing a re -out can have safety issues because the house during a few days of being vacant could be vandalized. After some discussion Dan Dibble made a motion and second by Michael Riley to change the local amendments per staff recommendation to change to read as follows: > for commercial buildings a re-out inspection is required if the energy has been disconnected for a period more than five (5) days, excepting weekends and holidays; for residential buildings a re -out inspection is required if the energy has been disconnected for a period of more than three (3) months. Motion carried unanimously. New Members: New board member, Jared Merdes, Mechanical Engineer with Patterson Engineering was welcomed and introduced by David Lewis. Joe Elliott, Interim Building Official; Jay Reining, City Attorney; and Sylvia Sanchez Development Services Management Assistance, gave a brief description of their job history with the city and current job duties. Interim Building Office Report: Mr. Elliott reported that inspection numbers are down. Staff is estimating that the general fund will be short approximately 9 million dollars. Development Services revenues will probably increase by 1 million due to recent increase on fees; the department will return approximately $900,000 to the general fund. Staff interviewed four candidates for the vacant Electrical position; an offer is forthcoming. There will also be a third party contractor for plan review and to assist with areas where the department has vacant positions. The third party contractor will assist the department as a. needed basis. Joe stated that if board members are aware a theft occurred at a job site, they should call for another inspection. Lee Montgomery inquired if the developer would be required to pay for another inspection. Joe stated that staff can work around that due to the circumstances. Mr. Elliott informed the board that the direction from management is to move forward with the adopting the 2008 NEC and for Building the 2006 codes. The goal for completion for board to review the codes and make their recommendations is October 2008. The code agenda item will than be presented for the first reading to city council in November; a second reading will be scheduled in December. The new codes will be effective January 2009. Jay stated that board members can work on code substance they would like to recommend for adoption and he will work on the language. Joe added that it is important that board members be present in the upcoming board meetings. Petition from Audience: None Adjournment: A motion to adjourn was made by Bhaster Patel, second by Dan Dibble. Motion carried. Meeting adjourned at 4:23 p.m. Page 2 of 2 —300— Exhibit B Page 2 of 2 DEVELOPMENT SERVICES f. Approved engineer's inspection. It is the certi5ing engineer's responsibil- ity to ensure that the engineer or the engineer's representative has com- pleted the TDI framing inspection prior to the city inspector completing the city's frame inspection. g. All non - engineered structures must be inspected by an inspector certi- fied by the limas Department of In- surance se or by a Sums registered engineer. h. A Certificate of Compliance, Form WPI-8, issued by the Maas Depart- ment of Insurance is evidence ofcom- pliance with this section, and is re- quired before issuance of a certificate of occupancy. No substitutions will be accepted. A temporary certificate of occupancy may be issued prior to receipt of the Certificate of Compli- ance from the Texas Department of ' Insurance upon presentation of a copy ofthe Building Certificate, Form WPI2, and copies of all required . Held Forms, Form WPI -7, from a 'bras Department of Insurance in- spector, a %etas registered profes- sional engineer, or the contractor. Only inspectors employed or certi- fied by the Texas Department of In- surance or fleas registered profes- sional engineers may be used to inspect for compliance with this sec- tion. Unless the building official and building inspectors employed by the city as inspectors by the Maas De- partment of Insurance, the building official and building inspectors em- ployed by the city will not certify compliance with this section, but may notify the Thus Department of In- surance if any suspected violations are observed during the normal course of other inspections. (b) Electrical. (1) Rough inspecdon. Arough inspection must be called for by the permittee and must be made prior to the concealment of the work. CD14:36 —301— i 14.222 (2) Final inspection. A final inspection must be called for by the permittee within thirty (30) days of the completion of work, and must be made of every structure or pro- misee, for which a permit was obtained, upon completion and prior to final ap- proval of' or the issuance of the certificate °f occupanq and release of permanent power as required. (3) Re-out inspection. It is unlawtinl for any person, firm, or corporation to connect, or cause to have connected, the source of energy at a utility meter which has been disconnected, fbr a specified period of time, until a re-out inspection is made and approval has been issued in writing by the building official or building official's authorised representative, authorizing the reconnection and use of the wiring, de- vices, or equipment. a. For commercial buildings a re -out inspection is required if the energy has been disconnected for a period more than twenty -four (24) hours, excepting weekends and holidays. b. For residential buildings a re-out inspection is required if the a re -out inspection is required if period of more than six (6) months. (c) Pisal.gos. (1) Utility service inspection. A utility service inspection must be called for by the per- mitted, or the pe nittee's authorised agent, and must be made after the piping from the utility easement to the building is installed and prior to the concealment of the work. An additional pressure test may be required on all utilities before the inspection is approved. (2) Under floor (rough) inspection. An under floor inspection must be called for by the permtttee or the permittee's agent, and must be made after all the piping under the floor is installed and prior to the concealment of the work. A pressure test may be required on all piping before the inspection is approved. Exhibit C Page 1 of 1 Page 1 of 3 AN ORDINANCE REVISING SECTION 14 -222 (b)(3) REQUIRED INSPECTIONS, CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, TO CHANGE THE TIME PERIODS REQUIRED FOR ELECTRICAL RE -OUT INSPECTIONS; PROVIDING FOR PUBLICATION; PROVIDING FOR SEVERANCE; PROVIDING FOR PENALTIES; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Section 14 -222 (b)(3) Required Inspections, Code of Ordinances, City of Corpus Christi, is revised to read as follows: "Sec. 14.222. Required inspections. * "(b) Electrical. "(3) Re-out inspection. It is unlawful for any person, firm, or corporation to connect, or cause to have connected, the source of energy at a utility meter which as been disconnected, for a specified period of time, until a re -out inspection is made and approval has been issued in writing by the building official or building official's authorized representative, authorizing the reconnection and use of the wiring, devices or equipment. For commercial buildings a re -out inspection is required if the energy has been disconnected for a period more thanfiwe: (24) -hours five (5) days, excepting weekends and holidays. For residential buildings a re -out inspection is required if the energy has been disconnected for a period of more than six -(.6) three (3) months." SECTION 2. That all ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed. 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 the City Council that every section, paragraph, subdivision, phrase, word and provision hereof shall be given full force and effect for its purpose. O: \Shared\JayWgenda\2008112- 16 \ORD amending 14 -22210 RCIbc Page 2 of 3 SECTION 4. A violation of this ordinance or requirements implemented under this ordinance constitutes an offense punishable under Section 14 -227 of the City Code of Ordinances. SECTION 5. That 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 6. This ordinance shall take effect upon and after publication of this ordinance. Q: \Shared\Jay1Agenda\2008 \12- 16 \ORD amending 14- 222(b) 3nr%c Page3of3 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: December 5, 2008 By: Y AIL !IL 61 t -tt_ A" d First Assistant City Attorney For City Attorney Henry Garrett Mayor Q:\SharedWay igenda\2008 \12- 16 \ORD amending 14- 222(Q) ).doc 27 CITY COUNCIL AGENDA MEMORANDUM AGENDA ITEM: December 9, 2008 A. Public hearing and first reading ordinance to consider abandoning and vacating a 52,488.43 - square foot portion of the Carmel Parkway public right -of -way, located between the South Staples Street and Gollihar Road street rights -of -way; subject to compliance with the specified conditions. B. Public hearing and first reading ordinance to consider abandoning and vacating a 5,040.17 - square foot portion of dedicated public right -of -way, located just west of the South Staples Street public right -of -way and north of the Carmel Parkway public right -of -way; subject to compliance with the specified conditions. ISSUE: Urban Engineering, on behalf of Capital Area Development II, Inc., is requesting the abandonment and vacation of a portion of the Carmel Parkway public right -of -way, and an adjoining portion of dedicated public right -of -way, to accommodate the re- development of the Parkdale Plaza Shopping Center. REQUIRED COUNCIL ACTION: City Charter requires Council approval to abandon and vacate any portion of street rights -of -way. City Code requires a public hearing prior to the vacating and abandonment of any street rights -of -way. RECOMMENDATION: Staff recommends approval of the ordinance as presented. Attachments: Exhibit A - Exhibit B - Exhibit C - Exhibit D - Bob Nix, AICP ACM of Development Services Background Information Ordinances Site Location Map Minutes of the Transportation Advisory Committee Meeting, July 21, 2008 -307- AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: Urban Engineering, on behalf of Capital Area Development II, Inc., ( "Owner") is requesting the abandoning and vacating of the 52,488.43- square foot portion of the Carmel Parkway public right -of- way, located between the South Staples Street and Gollihar Road street rights -of -way and another 5,040.17- square foot portion of dedicated public right -of -way, located just west of the S. Staples Street public right -of -way. The dedicated rights -of -way to be abandoned and vacated are located in a "B -4" General Business District. The said portions of public rights -of -way are being abandoned and vacated to accommodate the re- development of the Parkdale Plaza Shopping Center. A Transportation Advisory Committee (TAC) meeting was held on Monday, July 21, 2008, at 2:30 p.m., in the City Council Chambers to discuss the proposed street closure. The proposed street closure was endorsed by the Transportation Advisory Committee. (see Exhibit D) All public and franchised utilities were contacted regarding this closure request. City Traffic Engineering is requiring that a Traffic Impact Analysis (TIA) report be submitted for review and approval. The TIA was submitted, and approved by the Traffic Engineer. The City Engineering and Planning Departments are requiring that the Owner retain a Public Access Easement to allow for public access to the Parkdale Library from both Gollihar Road and South Staples Street at all times. The City Storm Water Department is requiring that the owner retain a 20 -foot wide drainage maintenance easement. The City Water Department has an 8 -inch ACP water main crossing the public right -of -way and is asking that owner retain a 15 -foot wide utility easement for the water main. The City Street Department has fiber optic cable along the existing power pole line along the right - of -way to support the Parkdale Library, and is requiring that the Owner retain a utility easement for the existing power poles and cable. AT &T has an underground conduit system with a manhole within the public right -of -way proposed for closure and is requiring the Owner retain a utility easement, within the right -of -way. AEP and Grande have no objections to the abandonment but will seek reimbursement if adjustments to their facilities become necessary to accommodate the proposed re- development. None of the other public and franchised utilities had any objections to the public right -of -way closure. Staff recommends that the Owner pay the fair market value of $171,008.00 for the abandonment and vacating of the 52,488.43- square foot portion ($150,916.36) of the Carmel Parkway public street right -of -way and the 5,040.17- square foot portion ($20,091.90) of dedicated public right -of- way. In accordance with City Code of Ordinance Sec. 49 -12, City Staff is requiring that fair market value fees be paid, prior to the placement of the ordinance affecting the closure on the council agenda. In the event that the ordinance fails to pass, said check shall be returned. The owner has been advised of and concurs with the conditions of the right -of -way abandonment. EXHIBIT A -308- Page 1 of 3 AN ORDINANCE ABANDONING AND VACATING A 52,488.43- SQUARE FOOT PORTION OF THE CARMEL PARKWAY PUBLIC RIGHT -OF -WAY, LOCATED BETWEEN THE SOUTH STAPLES STREET AND GOLLIHAR ROAD STREET RIGHTS -OF -WAY; SUBJECT TO COMPLIANCE WITH THE SPECIFIED CONDITIONS WHEREAS, Urban Engineering, on behalf of Capital Area Development II, Inc., (Owner) is requesting the abandonment and vacating of a 52,488.43- square foot portion of the dedicated public right -of -way, located between the South Staples Street and Gollihar Road street rights -of -way to accommodate the re- development of the Parkdale Plaza Shopping Center; and WHEREAS, with proper notice to the public, public hearing was held on Tuesday, December 9, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate the portion of the dedicated public right -of -way (Exhibit A), subject to compliance with the specified conditions. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the 52,488.43- square foot portion of the Carmel Parkway public right -of -way, located between the South Staples Street and Gollihar Road street rights - of -way, as recorded in Volume 41, Page 158 of the Map Records of Nueces County, Texas, is abandoned and vacated, subject to the conditions specified in Section 2. below. SECTION 2. The abandonment and vacation of the above public right -of -way is conditioned as follows: a. The Owner pays the fair market value of $150,916.36 for the abandonment and vacating of the 52,488.43- square foot portion of dedicated public right -of -way. The consideration must be paid by cashier's check delivered at closing. b. The City retains two Public Access Easements to allow for public access to the Parkdale Library from both Gollihar Road and S. Staples Street at all times along the area of public right -of -way vacated. c. The City retains a 20 -foot wide drainage maintenance easement centered upon the existing underground storm water infrastructure. d. The City retains a 15 -foot wide utility easement centered upon the existing 8 -inch ACP water main. ORD- Carmel Parkway - Parkdale ROW closure -A 12.09.083(49— Page 2 of 3 e. The City retains a 15 -foot wide utility easement for the existing power poles and cable supporting the Parkdale Library. f. The City retains a 15 -foot wide utility easement within the area of right -of -way being vacated to serve the existing AT &T underground conduit system. SECTION 3. Upon approval by Council and satisfaction of the conditions stated above, the City Manager is authorized to execute and deliver a Special Warranty Deed to the area vacated retaining the easements as noted above, the Deed to be recorded at owner's expense in the real property Map Records of Nueces County, Texas, in which the property is located. Prior to the approval of building permit and construction, an up- to -date survey, reflecting all easements and items of record, must be submitted to the Assistant City Manager of Development Services. ORD- Carmel Parkway - Parkdale ROW closure - A 12.094.. kg— That the foregoing or reading on this the Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Page 3 of 3 ce was r ad forth first time and passed to its second day of 2008, by the following vote: Priscilla G. Leal I , / John E. Marez Nelda Martinez Michael McCutchon 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: December 2, 2008 By: R. Jay fjkinin First Assist t City Attorney For City Attorney ORD- Carmel Parkway - Parkdale ROW closure - A 12.09.OBo11 Page 1 of 3 AN ORDINANCE ABANDONING AND VACATING A 5,040.17- SQUARE FOOT PORTION OF DEDICATED PUBLIC RIGHT -OF -WAY, LOCATED JUST WEST OF THE SOUTH STAPLES STREET PUBLIC RIGHT -OF -WAY AND NORTH OF THE CARMEL PARKWAY PUBLIC RIGHT -OF -WAY; SUBJECT TO COMPLIANCE WITH THE SPECIFIED CONDITIONS WHEREAS, Urban Engineering, on behalf of Capital Area Development II, Inc., (Owner) is requesting the abandonment and vacating of a 5,040.17- square foot portion of the dedicated public right -of -way, located just west of the South Staples Street public right - of -way and north of the Carmel Parkway public right -of -way to accommodate the re- development of the Parkdale Plaza Shopping Center; and WHEREAS, with proper notice to the public, public hearing was held on Tuesday, December 9, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate the portion of the dedicated public right -of -way (Exhibit A), subject to compliance with the specified conditions. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the 5,040.17- square foot portion of the dedicated public right -of -way, located just west of the South Staples Street public right -of -way and north of the Carmel Parkway public right -of -way, as recorded in Volume 41, Page 158 of the Map Records of Nueces County, Texas, is abandoned and vacated, subject to the conditions specified in Section 2. below. SECTION 2. The abandonment and vacation of the above public right -of -way is conditioned as follows: a. The Owner pays the fair market value of $20,091.90 for the abandonment and vacating of the 5,040.17- square foot portion of dedicated public right -of -way. The consideration must be paid by cashier's check delivered at closing. b. The City retains two Public Access Easements to allow for public access to the Parkdale Library from both Gollihar Road and S. Staples Street at all times along the area of public right -of -way vacated. c. The City retains a 20 -foot wide drainage maintenance easement centered upon the existing underground storm water infrastructure. d. The City retains a 15 -foot wide utility easement for the existing power poles and cable supporting the Parkdale Library. ORD- Carmel Parkway - Parkdale ROW closure - B 12.09.&81d2C Page 2 of 3 e. The City retains a 15 -foot wide utility easement within the area of right -of -way being vacated to serve the existing AT &T underground conduit system. SECTION 3. Upon approval by Council and satisfaction of the conditions stated above, the City Manager is authorized to execute and deliver a Special Warranty Deed to the area vacated retaining the easements as noted above, the Deed to be recorded at owner's expense in the real property Map Records of Nueces County, Texas, in which the property is located. Prior to the approval of building permit and construction, an up- to -date survey, reflecting all easements and items of record, must be submitted to the Assistant City Manager of Development Services ORD- Carmel Parkway - Parkdale ROW closure - 13 12.09.08513— Page 3 of 3 That the foregoing ord' ce was r d for the first time and passed to its second reading on this the day of d , 2008, by the following vote: Henry Garrett Priscilla G. Leal ^ Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell 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 Michael McCutchon 4,- PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa Henry Garrett City Secretary Mayor APPROVED as to form: December 2, 2008 By: R. Jay eihing Firs sslstant ity Attorney For City Attorney ORD- Carmel Parkway - Parkdale ROW closure - B 12.09014— -315- Proposed Public Right ofWay Closure Carpus Chap Bey ROW LOCATION prM By: CS Cepemmenr Fe of Development Servlees E South Staples Street -10O' B.L M 8 1 0 0 Vic 6 orn_ • 0 CO O N 0 >2 a rc do t ch • '2k ''4 so .�� L1 el It $ 8 co g ag do Pi. at • 0 qo'e -317- 0 q0 0 oo O c at N Q • NQ�N C o CO I1 mW N q Q C I 0 a ' t 0 € Q 6. � � a n O-VlON Zz CO w ZEE.- h South (Staples Street (Deed- S31'O4'26'Z S31'06'10"E 54.01' (00' B.L 0 • • r n 0 C 0 8.•a. g �yrc• 0 N Z v o >2 g• -318- \8 c 8 gy e° M t 12 54 02 PIN 9� WI el �'OE O Q c N n o Q N00 . 6 N •c OtOwmW tnf0)0Nc zII $ • Lin < 0 C(/) -(AON Zz1- Q� m w mil N my c 0 V CO V O O 0000 a d krE z yZ w O 7 ",. O 0 V ' - 0 � O 1563 0 C I " m 0 ¢v ei d U ° O cE oa M U -0 al ma a O v ^ °'53 Oo0v6v • 0. 00 ri 0 O cc;oN n o w O0) -cEz to -z Z o� T 0ccm a U 0 Transportation Advisory Committee Minutes Monday, July 21, 2008 I. CaII Meeting to Order — Mr. Green, Chairperson called the Meeting was called to order at 2:35 p.m. II. Approval of Minutes — Mr. Green noted that the June minutes date on the agenda be corrected. The minutes stated June 23, 2008 and the agenda stated June 21, 2008, the correct date was June 23, 2008. Motion made by Mr. Green, seconded by Mrs. Beard to approve minutes for June 23, 2008. Motion passed. III. Committee Reports a. Monthly Traffic Fatality Report - This item was tabled due to lack of representation. Mr. Green stated that City Staff should visit with PD Traffic Division and let them know that this report is being tabled due to lack of representation. b. Traffic Engineer's Report - Mr. Cardenas provided the committee with the following information: • Speed limit ordinances — An update and presentation will be given in August 2008. • Hurricane Evacuation — TxDot cleaned the hurricane evacuation lane. IV. Staff Recommendations Requiring Committee Review/ Recommendations a. Street Closure request • Columbia Parkway — Mr. Perales stated that Members First Bank, (Owners) is requesting the abandonment and vacation of a 3,782.34 - square foot portion of the Columbia Parkway public street right -of -way, the dedicated ROW to be abandoned and vacated is located in a "B-4" General Business District. The said portion of public right -of -way is being abandoned and vacated to accommodate for the replating of Lot 6, Greenwood Terrace Unit 3 Subdivision. As part of the replating process, Owners must construct a fire apparatus access road for emergency response accessibility. Mr. Green stated that motion made be made as long as there is a replating of the property. Mr. Soza made motion to close this section of Columbia Parkway, Mrs. Beard seconded. Motion Passed. • Breezy Court — Mr. Perales stated that Ascend Asset Group, LLC, (Owners) are requesting the abandoning and vacating of the 21 ,939.84 - square foot portion of the Breezy Court public street right -or -way, located west of the La Concha Boulevard street right -of -way. The dedicated ROW to be abandoned and vacated is located in an "AT" Apartment - Tourist District. The said portion of public right -of -way is being abandoned and vacated to accommodate for the redevelopment of the La Concha Estates EXHIBIT D Page 1 of 3 —319— Unit 3 Subdivision. Mr. Perales stated that the original plat was laid out as a typical cul -de -sac based on a single family detached development. Mr. Green stated that motion made if the developer will re -plat or vacate the plat. Motion made by Mrs. Beard, seconded by Mr. Carrizales. Motion passed. • Carmel Parkway — Mr. Perales stated that Urban Engineering, on behalf of Capital Area Development II, Inc., Owner is requesting the abandoning and vacating of the 52,488.43- square foot portion of the Carmel Parkway public right -of -way, located between the south Staples Street and Gollihar Road street rights -of -way and another 5,040.17 - square foot portion of dedicated public right -of -way, located just west of the S. Staples Street public right -of -way. The dedicated rights -of -way to be abandoned and vacated are located in a "B4" General Business District. The said portions of public rights -of -way are being abandoned and vacated to accommodate for the re- development of the Parkdale Plaza Shopping Center. Mr. Perales stated that the maintenance of the right -of -way will be done by Waimart. Mr. Green asked if the Traffic Impact Analysis was approved. Mr. Cardenas stated that the first TIA was submitted in April 2008 and was sent back for corrections. The second TIA was submitted in June 2008 and was approved. Mr. Green asked if the Developer was okay with the associated risk. Developer stated yes. Motion made by Mrs. Beard to present this to the City Council for further approval, seconded by Mr. Soza. Motion passed. b. (UDC) Unified Development Code Shared Access Focus Group — Bob Payne stated that the current Driveway Ordinance was adopted in December 1985 and revised in 1988. The current driveway ordinance addresses residential, commercial and industrial driveway spacing, setbacks for driveways from comers, minimum driveway widths, and driveway design and construction standards. Mr. Green opened for discussion. Motion made by Mrs. Beard to present this to City Council for further approval, seconded by Mr. Soza. Motion passed. V. Issues for next scheduled Transportation Advisory Meeting — None VI. Previous /New Concerns a. Possible four -way stop sign at Oso Parkway/Yorktown Blvd. to reduce speeding. — Mr. Cardenas, City Traffic Engineer stated that a four way stop is not a method to reduce speed. The City will be doing the signal warrant analysis for Yorktown. The Committee tabled until the next meeting. b. Vehicles using northbound turning lane to accelerate and merge with southbound traffic. Left turns onto Weber Road from McDonald's driveway south of Saratoga Blvd. — Mr. Cardenas, City Traffic Engineer spoke with TxDot about the delineators. TxDot has agreed to put up delineators. EXHIBIT D Page 2 of 3 —320— present. d. Montana Mikes driveway — Mr. Cardenas, City Traffic Engineer stated that City Staff investigate the permits from Development Services. Mr. Hudson, Urban Engineering stated that this driveway was part of the existing property. TxDot agreed to a right out only driveway a year ago and the building permits shows where the driveway should have been removed but he does not know why they did not remove it. Mr. Jones asked if there is a time limit on permits and Mr. Hudson stated that he thought that there was a six month time limit. Mr. Green stated that the certificate of occupancy should have never been issued and that City Staff should visit with legal and code enforcement about the driveway. e. Top 10 Dangerous Intersections — This item was tabled until the next meeting. f. Saratoga and Cimmarron left turn signals — Mr. Green suggested that the left turn signal be readjusted. He also suggested that the lights need to longer. Mr. Cardenas, City Traffic Engineer stated that these signals were readjusted on Friday, June 20, 2008 and that it is part of a split phase project. He also noted that traffic signals have a 120 second cycle. Mr. Green requested that the cycle times be re- evaluated. The Committee tabled this item until the next meeting. VII. Public Comment — None VIII. Adjournment — Meeting adjourned at 4:50 p.m. EXHIBIT D Page 3 of 3 —321— 28 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 12/09108 AGENDA ITEM: Ordinance appropriating $150,000 of anticipated revenue from rental income at Sunrise Beach on Lake Corpus Christi in the No. 4010 Water Fund for the operation and maintenance of the Water Department's facility at Sunrise Beach; changing the FY 2008 -2009 Operating Budget, adopted by Ordinance No. 027776, to increase proposed expenditures and anticipated revenues by $150,000 each. ISSUE: The City of Corpus Christi currently owns approximately forty -four acres adjacent to Lake Corpus Christi and behind the Wesley Seal Dam office site. For the last twenty years, the property has been leased to a service provider (Robert Roth) for the operation and maintenance of a campground and the contract expired on March 7, 2008. The lease was continued on a month -to -month basis pending the City's bidding process and selection of a new tenant. During the bidding process, several concerns have developed regarding the condition and adequateness of the property's infrastructure. Other issues have evolved concerning the change of operation from campground use to long -term residency. In September 2008, City staff was directed by the City Council to operate and maintain the facility in the interim and perform a complete assessment to determine the long term plan of action. At present, the current contract stipulates that the lessee will pay the City three percent of gross sales less sales tax or $1,810 per quarter whichever is greater. Generally, the City has been receiving the three percent, which amounts to about $9,900 per year. The appraised value is approximately $400,000 and it is the appraiser's opinion that the property's rental value should be a minimum of $32,000 per year. If the City decides to re -lease the property, it is anticipated that the minimum bid will start at $15,000 with bidders adding a percentage of gross receipts less sales tax, supported by audited documents. Based on the previously reported annual payments, total gross sales for the period January 1 — July 31, 2009 is estimated at $263,000. Beginning January 1, 2009 the City will operate and maintain this facility for a period of seven months and it is expected that the following expenses will be incurred during this period: Labor (3 temporary employees) $ 50,000 Electricity 7,000 Water 650 Solid Waste 350 Grounds maintenance 7,000 —325— Condition assessment 50,000 Maintenance & Repairs 35,000 Total 150,000 REQUIRED COUNCIL ACTION: Approval of Ordinance as requested by Staff FUNDING: Water Fund (4010) CONCLUSION AND RECOMMENDATION: Staff recommends approval of the ordinance appropriating $150,000 of anticipated revenue into the Water Fund (Fund 4010) from rental income at Sunrise Beach on Lake Corpus Christi to be used for the operation and maintenance of the facility. Attachments: Background Fee Schedule 4Yevv ot fpr Gustavo Gonzalez, P.E. Director of Water Operations —326— BACKGROUND INFORMATION July 19, 1972: Lease originated between Lower Nueces River Water Authority, City of Corpus Christi and Mr. William B. Hoskins. August 26, 1982: Assignment of lease from Mr. Hoskins to Mr. Robert A. Roth, dba Sunrise Beach, Inc. September 15, 1983: Agreement between City of Corpus Christi and Mr. Robert A. Roth. The Agreement permitted Mr. Roth to build improvements on the site using up to 75% of the base monthly rents as a credit. Term is for 5 years. Improvements include water, sanitary and electrical systems, campsite developments, recreational building, roads, laundry building, and for selective clearing and landscaping. Said improvements are to remain the property of the City of Corpus Christi. November 9, 1987: Ten year lease with Mr. Robert A. Roth, exclusively, with two successive five year terms. Lessee is permitted to apply 75% of the base monthly rents to improvements stated in the 1983 lease for the initial five year term. Improvements are to remain the property of the City. This full lease expired on March 7, 2008. September 29, 2008: Prospective Bidders for the Sunrise Beach lease were notified that the scheduled bid opening of October 1, 2008 was cancelled until further notice. They were informed that the City would conduct a full assessment of the property. September 30, 2008: Mr. Jeff Bernsen and Mr. Robert A. Roth were notified that the (current) month -to -month lease arrangement was being terminated and that the City would take over the property effective January 1, 2009. -327-- Fee Schedule Daily Use Fees (price for 2 people 1 car) Adults $8.00 Children (6 and under) Free Additional Fee per person $3.00 Group Picnic Setup Fee (includes large BBQ Pit, Picnic Tables, Roped off area) $35.00 Overnight Camping Fees (price for 2 people 1 car) Tent site (no electricity) Site with electricity and water Site with full hook -up (water, sewer, electricity) $25.00 $30.00 $35.00 Cabin and Shelter Fee (price for 2 people 1 car) Small shelter with A/C (2 night minimum) $45.00 Deposit $25.00 Large Cabin (2 night minimum) $65.00 Deposit $50.00 Each additional person $3.00 RV Sites (price for 2 people 1 car) Weekly Sites (plus metered electricity) Deposit for Electricity Monthly sites (plus metered electricity) Deposit for Electricity Holiday Rates $150.00 $20.00 $250.00 $50.00 Most Holiday weekends will have a 3 night minimum for camping. Day passes will be available for $20.00 for 2 people in 1 car, additional $3.00 per person in same car. Notes and Rules Checkout time is 10:00 p.m No pets allowed in park Clean area before leaving park Quiet time after 10:00 p.m No glass containers allowed in park Boaters and Jet skiers must obey Texas Parks and Wildlife rules regarding the operation of a watercraft within 50 ft. of another watercraft, motorboat, person, object or shore except at a speed only fast enough to maintain steerage. —328— Page 1 of 2 AN ORDINANCE APPROPRIATING $150,000 OF ANTICIPATED REVENUE FROM RENTAL INCOME AT SUNRISE BEACH ON LAKE CORPUS CHRISTI IN THE NO. 4010 WATER FUND FOR THE OPERATION AND MAINTENANCE OF THE WATER DEPARTMENT'S FACILITY AT SUNRISE BEACH; CHANGING THE FY 2008 -2009 OPERATING BUDGET, ADOPTED BY ORDINANCE NO. 027776, TO INCREASE PROPOSED EXPENDITURES AND ANTICIPATED REVENUES BY $150,000 EACH. BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $150,000 of anticipated revenue from rental income at Sunrise Beach on Lake Corpus Christi is appropriated in the No. 4010 Water Fund for the operation and maintenance of the Water Department's facility at Sunrise Beach. SECTION 2. That Ordinance No. 027776, which adopted the FY 2008 -2009 Operating Budget, is changed by increasing the proposed expenditures and anticipated revenues by $150,000 each. Ord - Sunrise approp ordinance 12012008.doc —32 9— Page 2of2 That the foregoing o.rd ce was read forte first time and passed to its second reading on this the , "/'ry day of b2000titlolt, 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper _— John E. Marez Larry Elizondo, Sr. Mike Hummel) 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: Nelda Martinez ALF- Michael McCutchon Armando Chapa City Secretary APPROVED: / day of December, 2008: R. - " R ing First Assistant City = orney For City Attorney Ord - Sunrise approp ordinance 12012008.doc —330– Henry Garrett Mayor 29 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 9, 2008 AGENDA ITEM: An Ordinance amending the Code of Ordinances, Chapter 6, Animal Care and Control, Section 6 -13, to establish a new provision regarding denial of registration; amending Section 6 -14, to establish a new provision regarding a reapplication period; amending Section 6 -76, to revise provisions relate to administrative hearings; providing an effective date; providing for severance; providing for publication; and providing for penalties. ISSUE: Staff is requesting to amend Chapter 6 of the Code of Ordinances to add language related to denial of registration; new provision related to reapplication period; and revise language related to Administrative Hearings. REQUIRED COUNCIL ACTION: Council Action is required to amend an ordinance. PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends the approval of amendments to Chapter 6 of the Code of Ordinances. Kel Cop= =nd Ani Li% ceyid e . `1Q bQJ Margie C. C1Rose Care Services Program Manager Assistant City Manager Attachments: Background -333- BACKGROUND INFORMATION This ordinance is being requested because a citizen requested changes to the ordinance after having been bitten by a dog. Staff reviewed the citizen's proposed changes and determined that consideration should be given to amend the current ordinance. There are several changes being recommended; however, the most significant change that the citizen requested and we agreed to was, if an owner has been convicted within a twenty -four (24) month period of two (2) or more violations for failure to restrain an animal and the animal has been involved in an incident which occurred without provocation and which resulted in injury to another person or domestic animal, they would not be issued a registration for twenty -four (24) months. The Animal Care Advisory Committee reviewed the proposed changes and recommends Council approval. —334— AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 6, ANIMAL. CARE AND CONTROL, SECTION 6 -13, TO ESTABLISH A NEW PROVISION REGARDING DENIAL OF REGISTRATION; AMENDING SECTION 6 -14, TO ESTABLISH A NEW PROVISION REGARDING A REAPPLICATION PERIOD; AMENDING SECTION 6 -76, TO REVISE PROVISIONS RELATED TO ADMINISTRATIVE HEARINGS; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR SEVERANCE; PROVIDING FOR PUBLICATION; AND PROVIDING FOR PENALTIES. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Chapter 6, Section 6 -13, of the Code of Ordinances is amended by estab- lishing a new provision regarding denial of registration and revising the section to read as follows: "Sec. 6 -13. Effect of prior convictions; subsequent bite incident. "(a) .. . No person may be issued a registration if the person has been convicted within the preceding twenty -four (24) months of two (2) or more violations, resulting from separate incidents, for failure to restrain an animal under this chapter and who owns an animal that was involved in a documented biting incident, which incident occurred without provocation, resulted in injury to another person or domestic animal, and occurred subsequent to the convictions. u Any person denied issuance of a registration under this sub- section (b) may challenge the denial by filing a written protest for review by the City Manager, or the City Manager's designee. Any protest must be submitted to the City Manager's Office within ten (10) days of denial of issuance. al Upon review by the City Manager, or designee, of a written pro- test, the City Manager's decision is final. "121 For purposes of this section, a prior court order of deferred adiudication or deferred disposition is considered a conviction." SECTION 2. Chapter 6, Section 6 -14, of the Code of Ordinances is amended by estab- lishing a new provision regarding a reapplication period, following a denial of registration, and revising the section to read as follows: —335— "Sec. 6 -14. Reapplication upon denial of registration or permit. ,.(a) .. . "(b) Any person having been denied a registration under Section 6 -13(b) of this chapter may not reapply for a period of twenty -four (24) months after such denial. "0)&1 Each reapplication must be accompanied by a nonrefundable ten - dollar fee. SECTION 3. Chapter 6, Section 6 -76, of the Code of Ordinances is amended by revising provisions related to administrative hearings and revising the section to read as follows: "Sec. 6 -76. Registration and permit revocation — Administrative proceedings. "(a) When held. "(1) The City Health Officer or the City Health Officer's designee may hold an administrative hearing to determine whether any registration or permit issued under Article II or Article III of this chapter should be revoked or to otherwise regulate the keeping of an animal within the city, if: EHord249 revised.doc "(A) A registration or permit holder fails or refuses to comply with any provision of this chapter, the regulations promulgated by the City Health Officer, or any law governing the protection and keeping of animals in this state; "(B) The owner of an unregistered animal, the owner of an unvaccinated animal, or the owner of a commercial animal establishment not properly permitted under this chapter fails or refuses to comply with any provision of this chapter, the regulations promulgated by the City Health Officer, or any law governing the protection and keeping of animals in this State; "(C) An animal has been involved in an unprovoked biting offense and the incident involved bodily injury to a person, "(D) An animal has been determined by an Animal Care Officer to be a public nuisance; or "(E) An animal has been the subject of two (2) criminal charges brought against the animal's owner under this chapter that resulted in –336– Page 2 of 5 conviction of the animal's owner, of two (2) impoundments, or a combination of one such conviction and one impoundment, resulting from separate incidents, within the twenty -four (24) month period immediately preceding the date of the last conviction or impoundment. Impoundments which occurred as a result of provoked scratching, biting, or attacking incidents may not be considered for purposes of this subsection. be considered for purposes of this subsection. "(b) Written notice required. "(1) An administrative hearing may not be held without giving the registration or permit holder, owner of a commercial animal establishment operating without a permit, or owner of an unregistered animal prior written notice of the date, time, and place of the hearing. "(c) Disposition. At the conclusion of the administrative hearing, the City Health Officer or the City Health Officer's designee shall determine if the person holding the registration or permit, the owner of a commercial animal establishment operating without a permit, or the owner of an unregistered animal has violated any provision of this chapter, the regulations promulgated by the City Health Officer, or any law governing the protection and keeping of the animal that is the subject of the administrative hearing. If any violation has been found to have EHord249 revised.doc -337— Page 3 of 5 occurred, the City Health Officer or the City Health Officer's designee, in their discretion, may order that any of the following actions be taken within the time specified by the City Health Officer or the City Health Officer's designee: (4) ..." SECTION 2. The provisions of this ordinance take effect on January 1, 2009. SECTION 3. If, for any reason, any section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it will not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is the definite intent of the City Council that every,section, paragraph, subdivision, phrase, word, and provision of this ordinance be given full force and effect for its purpose. SECTION 4. Publication of this ordinance is to be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi, Texas. SECTION 5. A violation of any provision of this ordinance or requirements implemented under this ordinance constitutes an offense punishable as provided in this ordinance and in Sections 1 -6 and 1 -6.1 of the Code of Ordinances of the City of Corpus Christi. EHord249 revised.doc —338— Page 4 of 5 That the foregoing ord/ nce was read for the first time and passed to its second reading on this the day of r_u- 2008, 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 4 4 That the foregoing ordinance was read for the second time and was finally passed 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: December 2, 2008 ' ltr 10°„ liza h R. Hundley Ass'. - nt City Attorney for the City Attorney EHord249 revised.doc —339— Henry Garrett Mayor Page 5 of 5 30 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Public hearing and ordinance to consider designating a certain area within the jurisdiction of the City of Corpus Christi as a tax increment financing district to be known as "Reinvestment Zone Number Three, City of Corpus Christi, Texas ", establishing a board of directors for the reinvestment zone, and other matters relating thereto; providing for severance; providing for publication; and declaring an emergency. ISSUE: To create a source of revenue for future downtown improvements. REQUIRED COUNCIL ACTION: Approval of a tax increment financing district known as Reinvestment Zone Number Three. PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends approval to designate a tax increment financing district for the downtown area. Irma Gaballero,i'rector Economic Development —343— BACKGROUND INFORMATION The City of Corpus Christi is proposing to create a Tax Increment Financing Zone (TIF) over a portion of the city that includes approximately 856 acres. Its boundaries encompass the city's Downtown area along the Bayfront from the SEA -Town complex at the north end, south to Morgan Avenue adjacent to the Christus Spohn Shoreline Hospital, and west to Tancahua Street. Over the last several years, the City of Corpus Christi has made significant financial investment in downtown. In an effort to begin the process of improving and revitalizing Downtown, the City has worked with a number of downtown organizations and stakeholders to assess what the community desires Downtown to become. The Downtown Redevelopment Committee (DRC) began meeting on March 29, 2006. The group, composed of various individuals representing the community and private sector organizations, held a total of 22 meetings through the support of the City's Economic Development Department and developed the following vision statement: "Downtown Corpus Christi is a safe, clean, pedestrian friendly community comprised of a central business district, arts and culture, sports and entertainment areas. This unique vibrant waterfront community will provide local residents, tourists and families' opportunities to enjoy fine restaurants, shops and residential facilities." The group sought background information from a variety of sources. City staff provided extensive information on projects, programs, and ordinances. Additionally, the Downtown Management District provided information on their projects and programs geared specifically towards downtown. The DRC developed a report with recommendations and strategies covering design, infrastructure, policies, business development, marketing, and organizational structure. As a result, the City researched ideas on how to generate a revenue stream that would assist the City with redevelopment efforts. In May 2008, the City entered into an agreement with CDS Spillette Alliance for a market and economic feasibility study and a project plan for the downtown tax increment reinvestment zone. The Downtown area qualifies for a TIF because it suffers from economic stagnation, inadequate infrastructure, and deteriorating properties. Some of the conditions, which exist in Downtown, that meet the criteria of the Tax Code of the State of Texas, Chapter 311, Section 005 include: • A substantial number of substandard, slum, deteriorated, or deteriorating structures; • The predominance of defective or inadequate sidewalk or street layout; —344— • Unsanitary or unsafe conditions; • The deterioration of site or other improvements; and • Conditions that endanger life or property by fire or other cause. Based on the language of Chapter 311, these conditions must "substantially arrest or impair the sound growth of the municipality or county creating the TIF Zone, retard the provision of housing accommodations, or constitute and economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use." Given the existing conditions in Downtown, as outlined in the Market and Economic Study, the feasibility for development in Downtown is severely limited. The conditions outlined above will not be overcome or corrected without significant intervention and assistance from the City and other taxing entities, therefore satisfying the general criteria for creation of the TIF Zone. The primary function of the TIF Zone will be the planning, design, and construction of public improvements. The TIF Zone is expected to be only one of a variety of funding sources and programs that will be acting in concert to accomplish a changed public environment in Downtown. Through the improvement and enhancement of streets, sidewalks, and public spaces in addition to upgrading infrastructure, the TIF Zone and other programs will encourage the development of new land uses and the redevelopment or rehabilitation of existing uses. The intended result is that Downtown will become a vibrant and economically vital urban waterfront district with a variety of residential, retail, and lodging uses, and improve public facilities and spaces. The TIF will help support improvements that further the objectives set forth in various recent planning initiatives of the City, in particular the South Central Area Development Plan, the Shoreline Boulevard Master Plan, and the priorities identified by the Downtown Action Group and Downtown Redevelopment Committee. The TIF Zone will initially take a pay -as- you -go approach to financing projects that could utilize the following methods: • Cash funds generated from existing property value increment, • Short term anticipation notes or other debt issued by private financial institutions based on projected property tax increment to be generated from taxable development under construction at the time of debt issuance, and • Developer cash reimbursement agreements where the revenues from the Zone's property tax increment compensate a developer for fronting eligible expenditures in a specific taxable project after the project is completed. The TIF Zone is proposed for a 20 -year duration. Assuming creation in 2008, the TIF Zone would expire after 2028. The projections assume an annual value appreciation rate for existing development at 3 %. The following table provides a schedule of property tax incremental revenue captured by the TIF Zone over its proposed 20 -year duration for each proposed participating entity: -345- Tax Year City of Corpus Christi Nueces County Del Mar College Total 2009 100,019 62,274 42,869 205,162 2010 174,857 246,169 174,267 595,293 2011 285,647 319,271 224,734 829,652 2012 316,876 342,920 241,172 900,967 2013 426,400 415,482 291,276 1,133,158 2014 598,578 483,334 344,660 1,426,573 2015 639,195 511,905 364,696 1,515,796 2016 1,065,151 653,234 462,341 2,180,727 2017 1,119,765 686,902 485,908 2,292,574 2018 1,327,973 816,265 575,341 2,719,580 2019 1,465,068 896,141 637,248 2,998,457 2020 1,890,849 1,160,899 820,077 3,871,826 2021 1,970,234 1,209,797 854,375 4,034,406 2022 2,052,000 1,260,161 889,703 4,201,864 2023 2,213,579 1,360,240 959,263 4,533,082 2024 2,377,242 1,465,436 1,032,686 4,866,364 2025 2,471,218 1,514,199 1,073,363 5,058,781 2026 2,568,014 1,573,695 1,115,261 5,256,970 2027 2,667,713 1,634,977 1,158,415 5,461,105 2028 2,847,763 1,746,300 1,236,036 5,830,100 TOTAL 28,578,143 18,350,603 12,983,691 59,912,437 -346- Tax increment Finance District #3 1311,11 I:r” 5:131T51:-..Hi 4.1111 Legend 73 .4.09/101 Aram. 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Cabin Ph.u..!..1111.M.N.W.-A, Page 1 of 6 ORDINANCE • DESIGNATING A CERTAIN AREA WITHIN THE JURISDICTION OF THE CITY OF CORPUS CHRISTI AS A TAX INCREMENT FINANCING DISTRICT TO BE KNOWN AS "REINVESTMENT ZONE NUMBER THREE, CITY OF CORPUS CHRISTI, TEXAS "; ESTABLISHING A BOARD OF DIRECTORS FOR THE REINVESTMENT ZONE; OTHER MATTERS RELATING THERETO; PROVIDING FOR SEVERANCE; PROVIDING FOR PUBLICATION WHEREAS, the Texas Legislature has authorized cities to establish reinvestment zones by its enactment of the Tax Increment Financing Act, Chapter 311, Texas Tax Code ( "Act "); WHEREAS, it has been proposed that the City of Corpus Christi should establish a reinvestment zone ( "Zone "), as authorized by the Act, within the area of the City as described by metes and bounds in Exhibit "A," and depicted by map in Exhibit "B," which exhibits are attached to and incorporated into this ordinance; WHEREAS, the City has prepared a preliminary reinvestment zone financing plan, a true and correct copy of which is attached to and incorporated into this ordinance as Exhibit "C," and has presented the plan to the governing bodies of the taxing units that levies taxes on real property in the proposed zone, has provided notice to each taxing unit of the creation of the proposed zone, has made a formal presentation to the governing bodies of the county and school district, and has taken and shall take all other actions required under Section 311.003 of the Act; WHEREAS, the preliminary reinvestment zone financing plan provides that the ad valorem taxes of the City constituting its tax increment are to be deposited into the Tax Increment Fund created by this ordinance, and that ad valorem taxes of the other taxing units constituting their respective tax increments may also be utilized.for the purposes described in the preliminary financing plan; WHEREAS, in compliance with the Act, the City called a public hearing to hear public comment on the creation of the proposed zone and its benefits to the City and the property in the proposed zone; WHEREAS, in compliance with the Act, notice of the public hearing was published in the Corpus Christi Caller- Times, a daily newspaper having general circulation in the City, the publication date being not later than seven (7) days prior to the date of the public hearing; WHEREAS, the hearing was convened at the time and place mentioned in the published notice, to -wit, on the 16th day of December, 2008, at the Regular Meeting of the City Council commencing at 10:00 a.m., at the City Hall of the City, which hearing was conducted and then closed; DOWNTOWN TIF ORD 12102008 —348— Page 2 of 6 WHEREAS, the City, at the hearing, invited and permitted any interested person to speak for or against the creation of the zone, its boundaries, and the concept of tax increment financing; WHEREAS, all owners of property located within the proposed zone were given a reasonable opportunity to protest the inclusion of the property in the proposed zone; WHEREAS, City Council considered all information provided to it relevant to the merits of creating the zone, consistent with the criteria in Chapter 311; and WHEREAS, all requirements of the Act have been met. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this Ordinance are found and declared to be true and correct. SECTION 2. The City Council, after conducting the above - described public hearing and having heard all evidence and testimony, makes the following findings and determinations based on the evidence and testimony presented to it: (a) That the Zone is a contiguous geographic area located wholly within the corporate limits of the City. (b) That the area substantially arrests or impairs the sound growth of the City, retards the provision of multi - family housing accommodations, constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare in its present condition and use because of: (1) Unsafe conditions, including deteriorating streets and defective and inadequate sidewalks pose a threat to visitors, residents, and customers of businesses located in the historic downtown district, bounded on the John Sartain on the South, Twigg Street on the North, Water Street on the East, and Mesquite Street to the West. The lack of appropriate curb cuts and ramps limit the mobility of persons with disabilities. (2) Non - existent, inadequately sized, or deteriorated utility infrastructure, including water, wastewater, gas, and fiber optics, substantially arrests or impairs the sound growth of the City and retards the development of multi- family housing and other business or visitor facilities. The existing utility infrastructure in its current condition constitutes an economic or social liability, and is a menace to the public health and welfare. (3) The inadequate street layout, lack of adequate improved parking, and limited way - finding and other signage hampers movement of vehicles and pedestrians throughout the proposed zone. DOWNTOWN TIF ORD 12102008 —349— Page 3 of 6 (4) Deteriorating public spaces with inadequate pedestrian scale lighting, limited irrigation systems and inadequate access to water lines for drinking fountains and hose bibs throughout the historic downtown district limit the types of landscaping and public amenities that can be installed within the business districts. (5) Lack of water and electrical meters in parks limits the activities within the available public spaces. (6) Unsafe conditions due to the lack of security cameras and other safety programs pose a threat to visitors and residents. (c) That tourism and convention business is of extreme importance to the Corpus Christi economy, which has not shared in the economic prosperity enjoyed by the rest of the State in recent years, and the area within the proposed district has tremendous, unrealized potential to support tourist and convention facilities, and it is essential that this presently under - developed area be fully developed. (d) That no more than ten (10) percent of the property in the proposed reinvestment zone, excluding property that is publicly owned, is used for residential purposes. (e) That the total appraised value of taxable real property in the proposed reinvestment zone and in existing reinvestment zones within the City according to the most recent appraisal rolls for the City, does not exceed fifteen (15) percent of the current total appraised value of taxable real property in the City and in the industrial districts created by the City. (f) That the proposed reinvestment zone does not contain more than fifteen (15) percent of the total appraised value of real property taxable by a county or school district. (g) That the improvements to be implemented in the proposed zone will significantly enhance the value of all taxable real property in the proposed zone and will be of general benefit to the City. SECTION 3. The City Council designates as a reinvestment zone the area described by the metes and bounds in Exhibit "A" and depicted by map in Exhibit "B" to promote development and redevelopment of the area, which development or redevelopment the City Council determines will not occur solely through private investment in the reasonably foreseeable future. The reinvestment zone shall be identified as Reinvestment Zone Number Three, City of Corpus Christi, Texas" ( "Zone" or "Reinvestment Zone "). SECTION 4. That a board of directors for the Zone (the "Board") is established, which consists of fifteen (15) members. The Board shall be appointed as follows: DOWNTOWN TIF ORD 12102008 —350— Page 4 of 6 (a) Under Section 311 .009(a), Tax Code, the tespective governing bodies of each taxing unit other than the City each may appoint one (1) member of the Board. Each governing body may waive its right to appoint a director, and is deemed to have waived the right if it has not made the appointment within thirty days of receiving written notice of its right to appoint. (b) The remaining members of the Board are appointed by the City Council of the City. All members appointed by the Board must meet eligibility requirements, as set forth in the Act. Provided, however, notwithstanding any other provision of this Ordinance, the City Council has the right to appoint at least ten (10) members of the Board, and the Board may exceed fifteen (15) members, if necessary for the City Council to make the ten (10) appointments. (b) Terms of Board members are two years. Terms must be staggered, with the first term of eight (8) City Council appointees being for one year. Officers must be appointed as provided in the Act. (c) The Board shall make recommendations to the City Council concerning the administration of the Zone. The Board shall prepare and adopt a project plan and reinvestment zone financing plan for the Zone, and submit the plans to the City Council for its approval under Section 311.011, Texas Tax Code. The Board shall exercise other powers and responsibilities with respect to the Zone only to the extent expressly granted by the City Council by ordinance or resolution. SECTION 5. The Zone shall take effect immediately upon the passage of this Ordinance. Termination of the Zone occurs on December 31, 2022 2028, or at an earlier time designated by subsequent ordinance of the City Council or at the time as all project costs, and all tax increment bonds and interest on any bonds, have been paid in full. SECTION 6. The Tax Increment Base for the Zone, which is the total appraised value of all taxable real property located in the Zone for the year in which the Zone is designated, is shown in Exhibit "D ", which is attached to and incorporated into this ordinance. SECTION 7. There is established a Tax Increment Fund for the Zone, which may be divided into the accounts and sub - accounts, as deemed necessary or convenient under generally accepted accounting principles for govemment, into which all tax increments, less any amounts not required to be paid into the Tax Increment Fund under the Act, are to be deposited. The Tax Increment Fund may be utilized only for purposes permitted by the Act and managed under the Act. SECTION 8. The City Council finds that the creation of the Zone and the expenditure of moneys on deposit in the Tax Increment Fund, which are necessary or convenient to the creation of the Zone or to the implementation of the project plan for the Zone, constitute a program to promote local economic development and to stimulate business and commercial activity in the City. DOWNTOWN TIF ORD 12102006 —351— Page 5 of 6 SECTION 9. 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 10. 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 11. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure on this the day of , 2008. ATTEST: Armando Chapa City Secretary THE CITY OF CORPUS CHRISTI Henry Garrett Mayor APPROVED: This 10th day of December, 2008: R. fining First Assistant City,Attorney For City Attorney DOWNTOWN TIF ORD 12102008 —352— Page 6of6 That the foregoing ordk nce was read for th first time and passed to its second reading on this the day of _ / Ez 2008, 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 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 n< APPROVED: day of December, 2008: R. Ja/ ejriing First` Assistant Ca rney For City Attorney Atto DOWNTOWN TIF ORD 12012008.000 —353— Henry Garrett Mayor Thence along the South right -of -way line of Broadway Street to its intersection with the westerly extension of the South right of -way line of Belden Street for a point; Thence Northeasterly along the South right -of -way line of Belden Street extension, to its intersection with the north right -of -way; Thence Northwesterly along the North right -of -way line of Broadway Street to the Southeast property line of the City of Corpus Christi's Broadway Wastewater Treatment Plant; Thence Northeasterly along the City of Corpus Christi's Broadway Wastewater Treatment Plant Southwest property line to Its intersection with the common South boundary line of Lots 1, Block 58 of the Beach Addition; Thence West along the West boundary line of Lot 1, Block 58 out of the Beach Addition, to its Southwest corner for a point; Thence Northwest along the common, West boundary line of Lots 1 thru 6, Block 58, of the Beach Addition, to its intersection with the South right -of -way line of Resaca Street; Thence Northeast along the South right -of -way line of Resaca Street to its intersection with the centerline of Tancahua Street, for a point; Thence Northwest along the centerline of Tancahua Street to its Intersection with the centerline of Port Avenue, for a point; Thence Southwest along the centerline of Port Avenue, to its intersection with the West right -of -way line of Sam Rankin Street for an outside corner; Thence Northerly along the West right -of -way line of Sam Ranking Street to Its intersection with the centerline of the Corpus Christi — Port Aransas Waterway center line in the Corpus Christi Ship Channel to the POINT OF BEGINNING. Excluded properties to meet state statute prohibiting Tax Increment Financing Districts from containing 10% or more of the area used for residential purposes. Beach Addition Block 55 Lots 10 thru 12 -354- Draft PRELIMINARY PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN Tax Increment Finance District #3 CORPUS CHRISTI, TEXAS Prepared for: The City of Corpus Christi Economic Development Office P.O. Box 9277 Corpus Christi, Texas 78469 -9277 October 2008 Prepared by: CDS 5PILLETTEt -355- Exhibit C TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION 1 Criteria for Zone Creation 1 Vision for Downtown 1 Anticipated Zone Role in Downtown Improvements 2 PROJECT PLAN 3 Existing Uses and Conditions / Boundaries §311.011(b)(1) 3 Exhibit A -Zone Boundaries and Land Use 3 Exhibit B.1 - Existing Conditions North Portion of Zone 4 Exhibit B.2 - Existing Conditions North-Central Portion of Zone 4 Exhibit B.4 - Existing Conditions South Portion of Zone 5 Exhibit B.3 - Existing Conditions - South -Central Portion of Zone 5 Exhibit C - Legal Description of the Zone 6 Municipal Ordinances §311.011(b)(2) 8 City Planned Improvements (Non - Project Costs) §311.011(b)(3) 8 Relocation §311.011(b)(4) 8 Clty Planned Improvements (Non- Project Costs) 8 REINVESTMENT ZONE FINANCING PLAN 9 Estimated Project Cost Description §311.011(c)(1) and Kind, Number, and Location of TIRZ Improvements §311.011(c)(2) 9 Exhibit 0 = Focus Area for TIF -Aided Improvements 10 Economic Feasibility Study §311.011(c)(3) 11 Estimate of Bonded Indebtedness §311.011(c)(4) 11 Timing of Incurring Costs or Monetary Obligation §311.011(c)(5) 11 Method of Financing and Sources of Revenue §311.011(c)(6) 11 Sources of Revenue 12 Current Appraised Value §311.011(c)(7) 13 Estimated Captured Appraised Value §311.011(c)(8) 13 Duration of the Zone §311.011(c)(9) 13 Estimated Captured Appraised Value 14 Appendices 15 Appendix A— Market and Economic Feasibility Study (Under Separate Cover) 15 Appendix B — Projection of New Development and Taxable Assessed Value 16 CDS 1 Spillette 2 -356- TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas INTRODUCTION The City of Corpus Christi is proposing to create a Tax Increment Financing Zone or TIF (hereafter referred to as the "Zone") over a portion of the city that includes the city's Downtown area along the Bayfront from the SEA -Town complex at the north end, south to Morgan Avenue adjacent to the Christus Spohn Shoreline Hospital, and west to Tancahua Street. Criteria for Zone Creation The area within the Zone qualifies for a TIF because it suffers from economic stagnation, inadequate infrastructure, and deteriorating properties. Without intervention by the public sector, private market forces will not be sufficient to generate significant development and redevelopment. Some of the conditions, which exist in the Zone, that meet the criteria of the Tax Code of the State of Texas, Chapter 311, Section 005 include: • A substantial number of substandard, slum, deteriorated, or deteriorating structures; • The predominance of defective or inadequate sidewalk or street layout; • Unsanitary or unsafe conditions; • The deterioration of site or other improvements; and • Conditions that endanger life or property by fire or other cause. According to the language of Chapter 311, these conditions must "substantially arrest or impair the sound growth of the municipality or county creating the zone, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use." Given the existing conditions in Corpus Christi, as outlined in the Market and Economic Study included in the Appendix to this plan, the feasibility for many types of desired development in Downtown is severely limited. The conditions outlined above will not be overcome or corrected without significant intervention and assistance from the public sector, therefore satisfying the general criteria for creation of the Zone. Vision for Downtown In recent years, considerable work has been undertaken to begin the process of improving and revitalizing Downtown Corpus Christi. The City has worked with a group of Downtown stakeholders to assess what the community desires Downtown to become. In 2006, after a series of 22 meetings, the City and the stakeholders developed the following vision statement: "Downtown Corpus Christi is a safe, clean, pedestrian friendly community comprised of a central business district, arts and culture, sports and entertainment areas. This unique vibrant waterfront community will provide local residents, tourists and families' opportunities to enjoy fine restaurants, shops and residential facilities." The proposed Zone can directly aid in the realization of this vision while addressing the deficiencies and challenges outlined above. CDS 1 Spillette -357- TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Anticipated Zone Role in Downtown Improvements The Market and Economic Study indicated the nature of the intervention and assistance needed to spur economic growth in different areas of the Zone. The current structure of Corpus Christi's economy, the aging of existing development, and inadequate public infrastructure and facilities together depress the viability of new development and redevelopment in Downtown. However, a small set of new residential projects and ideas for public improvements indicate that a reversal of fortune is possible. The primary function of the zone will be the planning, design, and construction of public improvements. The zone is expected to be one of a variety of planned funding sources and programs that will be acting in concert to accomplish a changed public environment in Downtown. By improving and enhancing streets, sidewalks, and public spaces, plus upgrading utilities, the zone and the other programs will encourage the development of new land uses and the redevelopment or rehabilitation of existing uses. The intended result is that Downtown will become a vibrant and economically vital urban waterfront district with a variety of residential, retail, and lodging uses, a strong office base, and popular public facilities. CDS 1 Spillette 2 -358- TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas PROJECT PLAN Existing Uses and Conditions / Boundaries §311.011(b)(1) The Zone includes approximately 856 acres wholly within the City of Corpus Christi. Its boundaries encompass nearly all of the Downtown area. A very wide variety of land uses are present within the proposed TIF. The proposed boundaries and land uses within the Zone are shown in Exhibit A. The existing conditions within the Zone are shown in the aerial and ground photos in Exhibit B and described generally. below. A legal description of the Zone with a specific accounting for the proposed boundaries is given in Exhibit C. A large area of publicly owned cultural and entertainment facilities comprises the north end of the zone ( "SEA- Town "). These facilities include: • Corpus Christi Museum of Science and Industry • Art Museum of South Texas • Whataburger Field (ballpark) • American Bank Center (convention center) • A cluster of historic houses Moving south, the zone transitions to a low density area of privately owned properties, including some vacant land, and the Federal Courthouse building. IH 37 ends in this area with on and off ramps coming to surface grade. South of IH 37, the zone splits into eastern and western portions. The area east of Broadway is lower in elevation and features a mix of mostly commercial land uses, including hotels, office, and retail. Many of the structures in this area are relatively old and some are underutilized, particularly on upper floors. Exhibit A - Zone Boundaries and Land Use Tax lncremeni Finance District CDS ( Spillette -359- 3 TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas While several hotels and office buildings are located here, the most recent ones were built in the 1980s and have not had substantial renovation. The area is interspersed with surface parking lots and occasional vacant property. In several places, public spaces and sidewalks are in deteriorated condition. Broadway marks a topo- graphical change as the edge of a bluff, and the higher elevation area to the west of the street north of Lipan Street is characterized mainly by professional office uses, some in high -rise towers. Of Downtown's office properties, only the Frost Bank building west of Broadway and the Shoreline Plaza development along the Bayfront are considered Class "A" properties. Overall occupancy for the Downtown office market is around 80 percent, a relatively weak market. In neither the lower nor upper portions of Downtown west of the Bayfront, south of IH 37 and north of Lipan and John Sartain streets, has there been any new private construction of significance since the 1980s. Three older commercial properties are in the process of being rehabilitated and converted to residential use, two of which will have ground floor retail. Exhibit B.1 - Existing Conditions North Portion of Zone Exhibit B.2 - Existing Conditions North - Central Portion of Zone CDS l Spillette -360- 4 TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas South of Lipan and John Sartain streets, the environment transitions to lower density. While there are high rise buildings, including a hotel and residential towers, but vacant land and parking lots also become more prevalent, particularly east of Chaparral Street. This portion of the Bayfront also includes the Memorial Coliseum complex and other park land. At the south end of the district, older low density residential is common on the zone's western edge, some of which has been converted to professional office use. The southeastern corner of the zone includes the Holiday Inn Emerald Beach hotel and Marina del Sol condominiums and abuts the Christus Spohn Shoreline hospital complex. The three T -heads along the Bayfront constitute a unique portion of the proposed TIF. While the underlying land is publicly owned, private improvements such as restaurants are also present. The recently completed market study for the zone indicated that while a low level of additional residential and retail development can be expected over the next ten years, retail viability for comparison goods and convenience retail will be limited due to the low population in Downtown. The study found that Exhibit B.3 - Existing Conditions - South - Central Portion of Zone Exhibit B.4 - Existing Conditions South Portion of Zone 'a mrsmr CDS 1 Spillette -361- TIF g3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas additional improvements in Downtown, both of public and private nature, could accelerate the pace and scope of new private development. Some of these improvements, such as reconfiguring and upgrading streets, sidewalks, and public spaces, along with utility capacity improvements, are projects, which could receive assistance from the proposed TIF. The City of Corpus Christi has determined, at the time of the establishing the proposed boundaries of the Zone, that less than 10 percent of the overall Zone consists of residential uses. Total residential uses of all densities are estimated to constitute approximately 7.6 percent of total zone acreage net of water area and public rights of way. Exhibit C - Legal Description of the Zone BEGINNING AT A POINT on the center line of the Corpus Christi Ship Channel and commonly known as the Corpus Christi — Port Aransas Waterway at its intersection with the northerly extension of the West right -of -way line of Sam Rankin Street; Thence Easterly along the centerline of the Corpus Christi — Port Aransas Waterway to its Intersection with the northerly extension of a line parallel with the breakwater 50' feet on the east side for a point in the Corpus Christi Bay and the Northeast corner; Thence Southerly along said line, being 50 feet on the East side and parallel with the breakwater, following the meanders of the breakwater in the Corpus Christi Bay to its intersection with an "A -2" zoning line approximately 1,000 feet from the shoreline and parallel with the East right -of -way line of Shoreline Boulevard for a point in the Corpus Christi Bay; Thence Southwesterly along said "A -2" zoning line extending parallel and approximately 1,040 feet from the East right -of -way line of South Shoreline Boulevard to its intersection with a second "A -2" zoning line extending parallel and approximately 1,000 feet from an existing 18 foot seawall easement, inside the Marina Del Sol Boat Harbor, for a point in the Corpus Christi Bay; Thence Southeasterly along said line 200 feet more or less past its intersection with the easterly extension of the south most boundary of Lot 3, Block 1 of Marina Del Sol Subdivision for a point In the Corpus Christi Bay and the Southeast corner; Thence Southwest along a line 200 feet more or less to the South and parallel with the extension of the south boundary of Lot 3, Block 1 of Marina Del Sol Subdivision to the Corpus Christi Bay Shoreline; Thence Northwest along the Corpus Christi Bay Shoreline to Its intersection with the extension of the South most boundary of Lot 3, Block 1 of Marina Del Sol Subdivision; Thence Southwest along the South boundary of Lot 3, Block 1 of Marina Del Sol Subdivision, 540 feet more or less to the centerline of Ocean Drive for a point; Thence Northwest along the centerline of Ocean Drive to its intersection with the centerline of Morgan Avenue; Thence Southwest along the centerline of Morgan Avenue, to a point in the center line of Santa Fe Street for the Southwest corner; Thence Northwest along the centerline of Santa Fe Street to its intersection with the centerline of Hancock Street; Thence Southeast along the centerline of Hancock Street to its intersection with the centerline of South Tancahua Street; Thence Northerly along the centerline of South Tancahua Street, passing Furman, Coleman, Park, Agnes, and Laredo Street, to a point in the centerline where South Tancahua becomes North Tancahua, and continuing along North Tancahua, passing Kinney, Blucher, Comanche, Lipan, Leopard, Antelope and Buffalo Street and continuing past IH 37 to its intersection with the centerline of Padre Street, for a point; Thence Northeast along the centerline of Padre Street to its intersection with the South right -of -way line of Broadway Street for a point; Thence along the South right-of-way line of Broadway Street to Its intersection with the westerly extension of the South right - of -way line of Belden Street for a point; Thence Northeasterly along the South right -of -way line of Belden Street extension, to its intersection with the north right-of- way line of Broadway Street, for a point; CDS 1 Spillette 6 -362- TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Thence Northwesterly along the North right-of-way line of Broadway Street to the Southeast property line of the City of Corpus Christi's Broadway Wastewater Treatment Plant; Thence Northeasterly along the City of Corpus Christi's Broadway Wastewater Treatment Plant Southwest property line to its intersection with the common South boundary line of Lots 1, Block 58 of the Beach Addition; Thence West along the West boundary line of Lot 1, Block 58 out of the Beach Addition, to its Southwest corner for a point; Thence Northwest along the common, West boundary line of Lots 1 thru 6, Block 58, of the Beach Addition, to its intersection with the South right -of -way line of Resaca Street Thence Northeast along the South right-of-way line of Resaca Street to its intersection with the centerline of Tancahua Street, for a point; Thence Northwest along the centerline of Tancahua Street to its intersection with the centerline of Port Avenue, for a point; Thence Southwest along the centerline of Port Avenue, to its intersection with the West right -of -way line of Sam Rankin Street for an outside corner; Thence Northerly along the West right-of-way line of Sam Ranking Street to its intersection with the centerline of the Corpus Christi — Port Aransas Waterway center line in the Corpus Christi Ship Channel to the POINT OF BEGINNING. Excluded properties to meet state statute prohibiting Tax Increment Financing Districts from containing 10% or more of the area used for residential purposes. Beach Addition Block 55 Lots 10 thru 12 CDS I Spillette 7 -363- TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Municipal Ordinances §311.011(b)(2) The City is not contemplating any specific changes to municipal ordinances as part of any projects to be undertaken by the Zone. The TIF will help support improvements that further the objectives set forth in various recent planning initiatives of the City, in particular the South Central Area Development Plan, the Shoreline Boulevard Master Plan, and the priorities identified by the Downtown Action Group and Downtown Redevelopment Committee. In general, these initiatives focused on encouraging more and denser residential development, supporting retail and entertainment activity, and improving infrastructure and public spaces, most notably the Shoreline Boulevard realignment and the improvement of sidewalks throughout Downtown. City Planned Improvements (Non - Project Costs) §311.011(b)(3) It is expected that the City, Nueces County, TxDOT, and other public agencies will participate in the rehabilitation of existing and development of new public facilities and infrastructure within the Zone. In addition, nonprofit organizations and private developers may also contribute public facilities and infrastructure, and they may undertake efforts to remediate environmental and safety deficiencies on existing private properties. The City of Corpus Christi has identified about $48 million in projects planned for locations partly or wholly within the Zone intended to rehabilitate and improve existing public facilities and infrastructure. TIF funds may be used to assist these projects; however, the bulk of funding is anticipated to come from other sources The table on the right lists some of these projects. City Planned Improvements (Non - Project Costs) Project Storm Water Projected Cost (millions) Downtown Drainage Improvements, Phase 3 520.10 Downtown Drainage Improvements, Phase 1 -Part B $0.10 Streets North Port Avenue (IH 37 to U5 181) - $0.9 Downtown Redevelopment Participation $0.1 Bayfront Development Plan, Phase I $9.3 ADA Improvements $2.0 Water Support of Downtown Redevelopment Projects $1.5 Water Line Replacement Wastewater Infiltration / Inflow Related Collection System $12.5 Enhancement Program Support of Downtown Redevelopment Projects 51.5 Wastewater Line and Manhole Replacement Parks and Recreation Windsport Park Improvements $0.07 Total $47.9 Note: Amounts may not add perfectly due to rounding Relocation §311.011(b)(4) No relocation of existing residents is anticipated to be required as a result of the Zone's projects. CDS 1 Splllette -364- 8 TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas REINVESTMENT ZONE FINANCING PLAN Estimated Project Cost Description §311.011(c)(1) and Kind, Number, and Location of TIRZ Improvements §311.011(c)(2) The Zone is anticipated to engage in projects that will support the types of development and economic activity projected in the Market and Economic Feasibility Study (Appendix A) as well as contribute to the image and attractiveness of Downtown Corpus Christi on a local, regional, and national level. In addition, the Zone will contribute funds to reimburse appropriate parties for the costs of Zone creation and ongoing administration. The categories of project costs, totaling an estimated $59,900,000 over the life of the Zone, include the following: PUBLIC IMPROVEMENTS, FACILITIES, AND INFRASTRUCTURE 1. Streetscape / sidewalks / crosswalks — Various components of the public pedestrian realm will be improved and enhanced in key locations where economic activity is limited due to deficiencies in this environment. Potential capital projects could include but are not limited to widened and rebuilt sidewalks, decorative paving, "street furniture" (benches, trash receptacles, kiosks, etc.), wayfinding (signs), enhanced crosswalks at intersections, and pedestrian- oriented lighting. 2. Parking — In key locations where parking is undersupplied or inadequately distributed, thus limiting economic activity and market appeal, the Zone can assist in providing public parking facilities such as on- street spaces or off - street lots and structures. Appropriate parking management infrastructure such as meters and occupancy monitoring systems may also be installed. 3. Roadways and traffic management —To facilitate a safe, efficient, and appealing driving experience within and through the Zone as a prerequisite to economic growth and new development, Zone funds may contribute to improvements in roadway infrastructure (repaving, repair, widening, redesign), traffic management infrastructure (signals, signs), and beautification (landscaping in medians, special lighting, etc.). The Shoreline Boulevard realignment would be an example of a project eligible for Zone funding. 4. Parks / public spaces / public facilities — As means to encourage additional activity, provide area identity and improve the quality of life within zone that is essential for economic growth, the Zone can contribute to the provision and enhancements of parks and public spaces. 5. Utilities and drainage - In locations where water, wastewater, electric, data, and / or drainage infrastructure is insufficient in size or too deteriorated in condition to allow new development, the Zone will assist in the provision of upgraded facilities. The Zone is anticipated to contribute the costs of planning, design, approvals, and obtaining right of way or easements that might be required, plus construction costs for some water and wastewater projects. 6. Land assembly —the Zone will consider purchasing properties that become available through willing sales offers in order to assemble land and improvements that can be either used for public facilities or sold to other public or private entities who will engage in development. (Note: as per state law, the Zone may not acquire properties through eminent domain unless those properties are to be used for public facilities.) 7. Environmental remedlation / safety improvements — Many older vacant or underutilized buildings within the Zone are not economically feasible to reuse because they contain environmentally CDS 1 Spillette 9 -365- TIF q3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas undesirable or unsafe elements that present a public safety hazard. The Zone may provide assistance to property owners and developers who must remediate such environmental deficiencies in order to develop or redevelop. ADMINISTRATIVE COSTS 8. Creation —The Zone will reimburse relevant parties for expenses related to the costs of creating the Zone. 9. Administration — Zone funds will compensate for the costs of ongoing administration of the Zone, including but not limited to accounting, legal services, document production and maintenance, and other administrative costs. These costs are estimated at $50,000 per year for the 20 -year life of the Zone. The Project Costs are estimated as follows: Public improvements, facilities, and infrastructure $ 58,900,000 Administrative costs 1,000,000 TOTAL The various types of projects may be implemented in any location within the Zone where the Zone's Board of Directors determines that doing so will enable desired private development. It should be noted that certain areas are likely to be a particular focus for certain types of projects, however. As an example, Shoreline Boulevard could be a major focus of Zone spending on roadway improvements. Generally, it is anticipated that the Zone will contribute to improvements focused on an area considered the core of mixed -use, urban vitality in Downtown. This is where the community can most easily realize the Downtown stakeholders' Vision Statement (see Introduction) from a base of existing development. Exhibit D illustrates the location of this focus area, roughly bounded by Broadway, Twigg, and John Sartain streets and including a central section of Shoreline Boulevard. $ 59,900,000 Exhibit D — Focus Area for TIF -Aided Improvements ck Focus area for improvements CDS) Spillette 10 -366- TIF R3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Economic Feasibility Study §311.011(c)(3) A Market and Economic Feasibility Study for the Zone was completed by CDS Market Research Spillette in August 2008. It is included in the Appendix to this Plan. Estimate of Bonded Indebtedness §311.011(c)(4) It is not initially anticipated that the Zone will issue bonded debt; instead the Zone's projects will be funded on a pay -as- you-go basis or utilize other financing methods. However, if the annual Zone revenue and available non - bonded debt financing are insufficient to address the needs of the Zone, the Zone may issue bonded debt commensurate with the specific project costs under consideration and anticipated annual Zone revenues to support debt service payments. Timing of Incurring Costs or Monetary Obligation §311.011(c)(5) Costs will be incurred over the life of the Zone based on its Board of Directors' identification of priority activities and projects, opportunities for implementation, and available revenues to sustain a pay -as- you-go project expenditure approach or a bonded debt issuance. Method of Financing and Sources of Revenue §311.011(c)(6) Methods of financing. The Zone will initially take a primarily pay -as- you -go approach to financing projects that could utilize the following methods: • Cash funds generated from existing property value increment, • Short term anticipation notes or other debt issued by private financial institutions based on projected property tax increment to be generated from taxable development under construction at the time of debt issuance, and • Developer cash reimbursement agreements where the revenues from the Zone's property tax increment compensate a developer for fronting eligible expenditures in a specific taxable project after the project is completed. If future Zone revenues to support debt service payments are anticipated, the Zone may also issue bonded debt, the term of which will not extend past the expected life of the Zone. CDS j Spillette 11 -367- TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Sources of revenue. The primary source of revenue for the Zone will be funds from the contributed property tax collections of the City of Corpus Christi, Nueces County, and Del Mar College on the taxable property value increment within the Zone. It is currently projected that each of these entities will agree to participate in funding the Zone with 100% of the incremental property taxes collected over the life of the Zone. Based upon 2008 tax rates for each jurisdiction, the incremental property tax revenue contributed to the Zone is projected as follows: Sources of Revenue Increment Value (S) Property Tax Revennc ($)' County Del Mar County Do Mar Total s 2009 18,100,670 18,086,522 18,092,205 100,019 62,274 42,869 205,162 2010 31,644,360 71,495,640 73,547,177 174,857 246,169 174,267 595,293 2011 51,694,361 92,727,031 94,845,797 285,647 319,271 224,734 829,652 2012 57,345,862 99,595,364 101,783,376 316,876 342,920 241,172 900,967 2013 77,166,908 120,669,747 122,929,083 426,400 415,482 291,276 1,133,158 2014 108,326,418 140,376,361 145,459,161 598,578 483,334 344,660 1,426,573 2015 115,676,880 148,674,174 153,915,141 639,195 511,905 364,696 1,515,796 2016 192,763,478 189,720,921 195,124,800 1,065,151 653,234 462,341 2,180,727 2017 202,647,052 199,499,071 205,070,750 1,119,765 686,902 485,908 2,292,574 2018 240,327,134 237,070,565 242,815,077 1,327,973 816,265 575,341 2,719,580 2019 265,137,618 260,269,204 268,941,735 1,465,068 896,141 637,248 2,998,457 2020 342,192,416 337,163,802 346,102,192 1,890,849 1,160,899 820,077 3,871,826 2021 356,558,859 351,365,238 360,577,463 1,970,234 1,209,797 854,375 4,034,406 2022 371,356,295 365,992,717 375,486,992 2,052,000 1,260,161 889,703 4,201,864 2023 400,597,654 395,059,021 404,843,807 2,213,579 1,360,240 959,263 4,533,082 2024 430,216,253 422,997,313 435,831,327 2,377,242 1,456,436 1,032,686 4,866,364 2025 447,223,411 439,773,755 452,998,472 2,471,218 1,514,199 1,073,363 5,058,781 2026 464,740,783 457,053,489 470,680,631 2,568,014 1,573,695 1,115,261 5,256,970 2027 482,783,677 474,851,616 488,893,256 2,667,713 1,634,977 1,158,415 5,461,105 2028 515,367,857 507,183,686 521,652,258 2,847,763 1,746,300 1,236,036 5,830,100 TOTAL. 28,578,143 18,350,603 12,983,691 59,912,437 1 Assumes 98% tax collection rate. These revenue projections assume a 98% tax collection rate for all three taxing jurisdictions. According to these projections, 47.7% of the tax increment revenues will come from the City, 30.6% will come from the County, and 21.7% will come from Del Mar College. CDS 1 Spillette -368- 12 TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Zone property tax contributions from the participating tax jurisdictions could be supplemented with other sources of revenue as available. These could include but are not limited to: • Grants from other local, state, and federal agencies; • Grants from private entities such as foundations; and • Joint implementation and funding agreements with other public agencies or private entities such as civic associations for specific projects. Current Appraised Value §311.011(c)(7) According to the Nueces County Appraisal District, the current certified taxable appraised value for the base year of the Zone, 2008, is $136,689,000 for the City of Corpus Christi, $136,217,400 for Nueces County, and $136,406,842 for Del Mar College. Estimated Captured Appraised Value §311.011(c)(8) The table on the next page provides the projected schedule of taxable value increment captured by the Zone over its proposed 20 -year duration. Due to differences in policies regarding exemptions and tax abatements, the captured increment differs among the three jurisdictions. Therefore, there is a table shown for each entity. Captured value projections assume a 3.0% annual value appreciation rate for existing development. Duration of the Zone §311.011(c)(9) The proposed duration of the Zone is twenty years from the time of its creation. Assuming creation in 2008, the Zone would expire after 2028. CDS Spillette 13 -369- TIF 83 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Estimated Captured Appraised Value Tax Year 2009 City of Corp r Value 154,789,670 s Christi (S) Increment 18,100,670 Nueces County Value 154,303,922 (5) Increment 18,086,522 Del Mar Callep,e Value 154,499,047 (Sr Increment 18,092,205 2010 168,333,360 31,644,360 207,713,040 71,495,640 209,954,019 73,547,177 2011 188,383,361 51,694,361 228,944,431 92,727,031 231,252,639 94,845,797 2012 194,034,862 57,345,862 235,812,764 99,595,364 238,190,218 101,783,376 2013 213,855,908 77,166,908 256,887,147 120,669,747 259,335,925 122,929,083 2014 245,015,418 108,326,418 276,593,761 140,376,361 281,866,003 145,459,161 2015 252,365,880 115,676,880 284,891,574 148,674,174 290,321,983 153,915,141 2016 329,452,478 192,763,478 325,938,321 189,720,921 331,531,642 195,124,800 2017 339,336,052 202,647,052 335,716,471 199,499,071 341,477,592 205,070,750 2018 377,016,134 240,327,134 373,287,965 237,070,565 379,221,919 242,815,077 2019 401,826,618 265,137,618 396,486,604 260,269,204 405,348,577 268,941,735 2020 478,881,416 342,192,416 473,381,202 337,163,802 482,509,034 346,102,192 2021 493,247,859 356,558,859 487,582,638 351,365,238 496,984,305 360,577,463 2022 508,045,295 371,356,295 502,210,117 365,992,717 511,893,834 375,486,992 2023 537,286,654 400,597,654 531,276,421 395,059,021 541,250,649 404,843,807 2024 566,905,253 430,216,253 559,214,713 422,997,313 572,238,169 435,831,327 2025 583,912,411 447,223,411 575,991,155 439,773,755 589,405,314 452,998,472 2026 601,429,783 464,740,783 593,270,889 457,053,489 607,087,473 470,680,631 2027 619,472,677 482,783,677 611,069,016 474,851,616 625,300,098 488,893,256 2028 652,056,857 515,367,857 643,401,086 507,183,686 658,059,100 521,652,258 1 Homestead exemptions applied to all owner- occupied residential; no over -65 or disabled exemptions applied. CDS 1 Spillane -370- 14 TIF #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendices Appendix A — Market and Economic Feasibility Study (Under Separate Cover) CDS I Spillette —371— 15 TIP #3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendix B — Projection of New Development and Taxable Assessed Value Annual appreciation rate previous assessed value: 3.00% Homestead exemptions applied to owner - occupied residential; no over -65 or disabled exemptions applied. CDS Spillette -372- 16 2008 136,689,000 136,689,000 136,217,400 136,406,842 2009 14,000,000 154,789,670 154,789,670 154,303,922 154,499,047 Bay Vista I 2010 9,990,000 8,880,000 10,920,000 39,900,000 40,990,000 • 209,323,360 168,333,360 207,713,040 209,954,019 Metropolis (Lichtenstein), Atlac Lofts, Cotton Yard 2011 15,000,000 42,219,700 230,603,061 188,383,361 228,944,431 231,252,639 Bay Vista II 2012 43,486,291 237,521,153 194,034,862 235,812,764 238,190,218 2013 14,000,000 44,790,880 258,646,787 213,855,908 256,887,147 259,335,925 150-unit MF rental 2014 13,500,000 12,000,000 14,750,000 34,890,773 279,906,191 245,015,418 276,593,761 281,866,003 50 -unit condo 2015 35,937,496 288,303,377 252,365,880 284,891,574 290,321,983 2016 32,500,000 329,452,478 329,452,478 325,938,321 331,531,642 New fullserWCe hotel 2017 339,336,052 339,336,052 335,716,471 341,477592 2018 27,500,000 377,016,134 377,016,134 373,287,965 379,221,919 150-unit MF rental, Smiled service hotel 2019 13,500,000 12,000,000 14,750,000 401,826,618 401,826,618 396,486,604 405,348,577 50 -unit condo 2020 65,000,000 478,881,416 478,881,416 473,381,202 482,509,034 300,000 Kitt. office bldg. w/ separate sparking structure 2021 493,247,859 493,247,859 487,582,638 496,984,305 2022 508,045,295 508,045,295 502,210,117 511,893,834 2023 14,000,000 537,286,654 537,286,654 531,276 ,421 541,250,649 150-unit MF rental 2024 13,500,000 12,000,000 14,750,000 566,905,253 566,905,253 559,214,713 572,238,169 50 -unit condo 2025 583,912,411 583,912,411 575,991,155 589,405,314 2026 601,429,783 601,429,783 593,270,889 607,087,473 2027 619,472,677 619,472,677 611,069,016 625,300,098 2028 14,000,000 652,056,857 652,056,857 643,401,086 658,059,100 150 -unit MF rental Homestead exemptions applied to owner - occupied residential; no over -65 or disabled exemptions applied. CDS Spillette -372- 16 TIF d3 - Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas CDS I Spillette 1250 Wood Branch Park Drive, Suite 100 Houston, TX 77079 281.582.0847 (Phone) 713.465.6975 (Fax) www.cdsmr.com CDS i Spillette 17 —373— MARKET AND ECONOMIC FEASIBILITY STUDY Tax Increment Finance District #3 CORPUS CHRISTI, TEXAS Prepared for: The City of Corpus Christi Economic Development Office P.O. Box 9277 Corpus Christi, Texas 78469 -9277 July, 2008 Prepared by: CDS SPILLETTE Strategic Urban Consulting Alban —374— Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF EXHIBITS STUDY PURPOSE AND EXECUTIVE SUMMARY 1 Research Objectives 1 Economic / Demographic Trends 1 Overall Approach to Market - Oriented Recommendations 2 Market Analysis and Strategic Recommendations 2 ECONOMIC AND DEMOGRAPHIC CONTEXT 6 Regional Economic Trends 6 Employment trends 6 Corpus Christi Regional Economy 9 Demographic Trends 10 Regional Demographics 10 Regional Demographic Trends 11 City of Corpus Christi Demographics 12 Downtown Demographics 13 General Citywide and Downtown Development Activity 17 Single Family Building Permit Trends 17 Commercial Building Permit Trends 19 Major City / Regional Developments 20 Port 20 Military- Related Activities 21 Colleges 22 Airport 23 Retail Incentives 23 Implications for Downtown 23 Major initiatives Downtown (TIF and non -TIF) 25 Bayfront Master Plan 25 Other Infrastructure Improvements 26 Chaparral improvements 26 Memorial Coliseum 26 OFFICE MARKET 27 CDS I Spillette -375- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Downtown and citywide existing inventory 27 Market conditions — Downtown and citywide 28 Outlook and Projections for Traditional Office Space Downtown 29 Medical Office in Downtown 30 HOTEL MARKET 31 Downtown and Citywide Existing / Planned / Proposed Inventory 31 Market Conditions — Citywide and Downtown 32 Tourism in Corpus Christi 32 Hotel Revenue Trends 32 Outlook and Projections — Downtown 35 RESIDENTIAL MARKET 37 Downtown and citywide existing / planned / proposed inventory 37 Market Conditions — Downtown and Citywide 41 Outlook and projections — Downtown 42 RETAIL MARKET 44 Retail Sales Trends 44 Downtown existing / planned / proposed inventory 45 Market Conditions — Downtown 47 Outlook and Projections — Downtown 48 CDS I Spillette -376- Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas TABLE OF EXHIBITS Exhibit 1— Corpus Christi MSA 6 Exhibit 2 — Corpus Christi MSA Employment Growth 6 Table 1- Corpus Christi MSA Employment Trends 7 Table 2 - 2007 Major Employers — Corpus Christi MSA 8 Exhibit 3 — Corpus Christi MSA Job Growth 9 Table 3 — County Population and Employment Forecasts 9 Table 4— Corpus Christi MSA Demographic Overview 10 Exhibit 4— Net Population Migration 11 Table 5 - Population and Age Trends — City of Corpus Christi Total 12 Table 6 —City Population and Employment Forecasts 12 Exhibit 5 — Proposed Downtown TIF District 13 Table 7 - Population and Age Trends — Proposed TIF 14 Table 8 - Household Characteristics 15 Table 9 - Household Size 15 Table 10 - Household Income Distribution 16 Exhibit 6— MSA Single - Family Building Permit Trends 17 Exhibit 7— City Single - Family Building Permit Trends 17 Table 11— Residential Building Permit Trends 18 Exhibit 8— Commercial Building Permit Trends 19 Exhibit 9 — Port of Corpus Christi 20 Exhibit 10— Naval Station Ingleside 20 Table 12 — Summary of Military Operations in Corpus Christi 21 Exhibit 11— Enrollment - Texas A &M University Corpus Christi 22 Exhibit 12 —Texas A &M University— Corpus Christi Master Plan 22 Table 13 — Corpus Christi International Airport Master Plan Components 23 Exhibit 13 — Land Use in the Proposed District 24 Exhibit 14— Bayfront Master Plan — Shoreline Drive Realignment 25 Table 14— Infrastructure Improvements in Downtown 200 -2008 26 Table 15 — 2007 Office Space (Non - Medical) within Proposed TIF Zone 27 Table 16 — Hotels in Proposed TIF 31 Table 17 - Hotel Room Revenue Trends 33 Table 18— Corpus Christi Roomnights Sold 34 Table 19 — Corpus Christi Hotel Performance 34 CDS Spillette -377- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Table 20— Hotels in Proposed TIF — Rack Rates 35 Table 21— Housing Characteristics, 2007 37 Table 22— Existing Multi - Family Rental Properties in Proposed TIF 38 Table 23— Existing Multi - Family Condominium Properties in Proposed TIF 39 Table 24 - Under Construction and Planned Multi - Family Residential Rental 40 Exhibit 15 — Downtown Corpus Christi Zip Codes 44 Exhibit 16 — Retail Sales Comparison —TIF vs. City 44 Table 25 —Gross Retail Sales in Downtown Zips and City 45 Table 26— Retail Sales in Downtown Zips 45 CDS I Spillette iv -378- Market Study and Growth Management Plan Pryor, Oklahoma STUDY PURPOSE AND EXECUTIVE SUMMARY Research Objectives The City of Corpus Christi, in cooperation with the Downtown community, is seeking to create a Tax Increment Financing (TIF) zone over most of the Downtown area. This market study, required by Chapter 311 of the State of Texas Tax Code, assesses the short and long term potential demand for the various private, taxable land uses relevant to Downtown: office, hotel, residential, and retail. The key output for each land use assessment is a projection of supportable space absorption or new development. Consideration is given for public improvements that could potentially be funded through the proposed TIF and how those improvements could impact demand for each land use. The Project Plan and Reinvestment Zone Financing Plan will incorporate the findings of this market study as input into projections of added taxable property value. Economic / Demographic Trends Corpus Christi is characterized by a slow - growth economy centered on the Port of Corpus Christi, petrochemical refining, military support services, independent oil and gas companies, and tourism. The City also plays an important role as a regional center for education, health services, and government. 1. Total nonfarm employment has shown growth of about 1 percent annually over the last ten years. This moderate rate of growth is expected to continue as Port- related trade expands. Strength in oil and gas will continue as prices for those commodities are expected to remain high, but alternative energy research (particularly wind) may become an increasingly significant presence in the local economy. The future of military- related activities is uncertain, since the Navy's Ingleside facility is slated to close and other activities may vary depending on global military activity. 2. The population of the City and region has also shown modest growth in recent years. There has been little domestic migration into the area. The MSA has an estimated current population of approximately 417,000, of which the City of Corpus Christi accounts for just under 300,000. The population is projected to grow by just over 1 percent annually for the next several decades. Within the proposed TIF, there is very little residential population — less than 1,400 persons. 3. The population of the City is gradually getting older, but the proposed TIF population is already substantially older with an estimated median age of nearly 50 years. The TIF also has a much smaller average household size than the City overall and has a larger proportion of lower income households. Median and average incomes are declining on an inflation- adjusted basis for households in both the TIF and the City. 4. After strong increases since the early part of the decade, residential building permit activity in Corpus Christi had a recent peak in 2005, with available data indicating a decline by 2007. Commercial permitting activity continued strong through 2006, though data indicated that 2007 may have also been the start of a slowdown. 5. Texas A &M — Corpus Christi is increasing its enrollment, now at approximately 8,600 students. Each year a greater proportion of its students are from outside the Corpus Christi area. CDS I Spillette -379- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas 6. Other economic expansion at the Port of Corpus Christi and Corpus Christi International Airport are expected to have a positive effect on Downtown's economy. 7. Some major improvement efforts are already underway in Downtown. The Shoreline Boulevard realignment, other infrastructure improvements, the redesign of Chaparral Street, and potential reuse or redevelopment of the Memorial Coliseum could each have a significant impact on the market dynamics of Downtown. Overall Approach to Market - Oriented Recommendations CDS I Spillette examined the four principal land uses in the context of the overall economic and demographic trends in the Corpus Christi area. CDS I Spillette staff traveled to Downtown Corpus Christi to personally examine the setting and conditions in Downtown. Real estate industry professionals, business owners, and public sector officials were interviewed, data on existing inventory and market performance (to the extent available) was collected and reviewed, and professional judgment was applied to arrive at projections within the proposed TIF. The projections represent the amount of additional space of development in Downtown that CDS Spillette would find supportable under projected market conditions. It is entirely possible that developers could choose to proceed with projects that exceed the levels of projected supportable activity. Also, other factors such as increasing construction costs can render unfeasible development projects that would otherwise be attractive under current assumptions. Market Analysis and Strategic Recommendations The following summarizes the findings and projections of CDS I Spillette for each of the studied land uses. This information is presented in greater detail in Sections 3 through 6. Overall 1. Despite the slow - growth nature of the Corpus Christi regional economy that may seem to lack major drivers for Downtown land use change, CDS I Spillette found significant opportunity in Downtown for new development. The unique Bayfront setting, coupled with an ample number of well - located vacant and underdeveloped sites, offers tremendous potential for evolving into an appealing urban waterside district. The affordable land prices relative to other coastal locations in the United States make Corpus Christi a hidden jewel in the national development landscape. Continued strong growth of other urban regions in Texas, especially San Antonio, will help provide a customer base and market awareness that will provide economic support for change in the future. 2. Potential public improvements in Downtown, which the proposed TIF could assist in funding, will have a positive effect on encouraging new Downtown growth. Creating public spaces and streets that emphasize a walkable urban neighborhood that capitalizes on its scenic Bayfront location and enables denser development would help spark residential, retail, and hotel development. Such projects as the Shoreline Drive relocation, Chaparral Street redesign, and utility upgrades could have a transformative effect. CDS I Spillette 2 -380- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Office 1. Downtown Corpus Christi is the region's major office center. However, only two properties are considered Class A quality. The higher quality buildings generally have higher occupancy rates than the other buildings. Occupancy rates are estimated to be roughly 20 percent overall. As regional and local corporate headquarters have left the City, there is not currently an economic driver for traditional office space demand in Corpus Christi that would remove the excess unoccupied space. As a result, it is a "tenants' market" with good values to be had in quality buildings, especially when compared with other Texas cities. 2. CDS I Spillette projects that no new office space will be added for the next ten years. In better quality buildings, vacant space will slowly be absorbed. After ten years, a Class A building of about 300,000 square feet may be warranted. 3. Medical - related buildings are common at the south end of Downtown near the Christus Spohn Shoreline Hospital complex. However, new buildings are not financially feasible because construction costs cause rents to be required . that prospective tenants (doctors) are not presently willing to pay. A medical office building recently built by Christus has been open for a year but has not been able to attract any tenants due to low lease rates in older buildings. CDS I Spillette is not projecting any new medical offices within the TIF. Hotel Market 1. Downtown has about 1,800 of the City's roughly 8,500 hotel rooms. Most hotel properties in Downtown are aging and have not been renovated. The large Omni properties, built in the 1980s, are the highest quality properties and charge the highest rack rates except for a very small boutique hotel opened in 2007. 2. While leisure travelers dominate travel to Corpus Christi overall, Downtown hotels tend to be more dependent upon business travelers. Average occupancy is higher for Downtown, where it is close to 65 percent, than for the City as a whole. However, total room revenue at Downtown hotels has been stagnant or dropped on an inflation- adjusted basis over the last several years. A significant amount of business travel in Downtown hotels is generated by government, which pays a relatively low daily rate. 3. Travel demand to Corpus Christi has been stagnant or slow - growth. In Downtown specifically, a lack of activities, shopping, and dining for visitors has reduced its appeal to leisure travelers. However, there is a more positive outlook for hotel development. Growth in San Antonio and other Texas cities will increase tourism to Corpus over time. If residential and retail development occurs in Downtown, its appeal as a leisure destination will also increase. Proposed amusement projects could have a transformative effect on Downtown's visitor appeal. 4. CDS I Spillette projects that new hotel development in the proposed TIF is six to eight years away (2014 — 2016). At that time, a first - class, full service hotel property of 200 to 300 rooms could be supportable, coming on line within a year or two afterward. In eight to ten years (2016 — 2018), a limited- service property would be supportable. The timing of these projections could be accelerated if residential, retail, and amusement facilities are developed in Downtown. CDS ( Spillette 3 -381- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Residential Market 1. The character of housing in the proposed TIF differs substantially from that of the City as a whole. Downtown residential stock is mostly in multifamily structures, more renter - oriented, and on average considerably older. The most recently built residential structures that are now occupied built in the 1960s or earlier. Rental apartments in the proposed TIF tally 534 units and condominium towers contain 42. 2. Substantial change is coming to Downtown's residential market. Four projects, three of which are rental apartments and the other for -sale condominiums, will add an estimated 336 units. Three projects are rehabilitations and reuse of older buildings while one, Bay Vista, is entirely new development. 3. Existing Downtown residential properties have high occupancy despite being older properties with higher than average rents per square foot. The units are smaller than average for Corpus Christi so unit rents are comparatively affordable. The new rental projects will be asking lease rates that are near the top of market for the City. Only one project, Bay Vista, is currently preleasing. The target renter market for these projects is young childless professionals working Downtown or in the medical district. 4. At the condominium project, Atlantic Lofts, unit prices are well above average for Corpus Christi homes, but ten of the 36 units have been pre -sold. The target market for this project is the older household with no children ( "empty nesters "). The developer believes that longtime Corpus Christi residents are unlikely to buy into the project; more demand will come from residents or retirees who have recently moved to the area. 5. There are several positive factors for Downtown housing demand over the coming years. The steady if slow population growth, tendency toward smaller households, relative affordability of Corpus Christi, unique waterfront setting, and other factors will help to provide a base level of demand. Public improvements such as the Shoreline Boulevard relocation and sanitary sewer capacity increases could help to add further increments to demand, as could additional retail and entertainment options. 6. Due to a lack of absorption record stemming from a lack of residential development until the present time, projecting supportable residential demand in Downtown is difficult. Existing projects will require time to be absorbed in the market. Beyond this, CDS I Spillette projects the following: • One 150 -unit multifamily rental complex opening every five years from 2012 onward, with rents in the $1.25 to $1.50 per square foot range depending on location and views. • One 50 -unit condominium property opening in 2013 and every five years thereafter, with average unit prices of $300,000. 7. Improvements to public spaces (via Shoreline Boulevard and Chaparral Street redesigns) and the broadening of retail offerings could accelerate this schedule. Retail Market 1. In contrast to relatively flat growth in retail sales citywide, retail sales in Downtown have been growing this decade. Restaurants and bars (46 establishments) make up a much larger share of CDS) Spillette 4 -382- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas sales Downtown than in the City overall. Convenience and soft goods establishments are relatively lacking at the present time. Those soft goods stores that are present tend to be speciality goods - focused and somewhat of a destination in their own right, being less dependent on the traffic drawn from surrounding stores as would be the case in a typical retail center. 2. To CDS I Spillette's knowledge, no significant new retail space has been constructed Downtown in many years. The Metropolis Lofts project will add renovated ground floor retail space by 2009, as will the Nueces Lofts. Both are in the Chaparral corridor, the principal retail and entertainment area in Downtown, anchored by the Water Street complex. 3. Most usable retail space in Downtown appears to be occupied at present. The space in the Metropolis Lofts has been mostly pre - leased at rates well above current market rates in Downtown, a positive sign. 4. Tourists / visitors are a vital market base for many Downtown establishments. At many businesses they make up an estimated half of customers. 5. The concentration of restaurants and nightclubs has led to parking and traffic difficulties on weekend nights. Chaparral Street closes at those times to car traffic. There is interest in developing public parking facilities in this part of Downtown to support retail uses. 6. The outlook for Downtown retail demand is difficult to assess as it is driven by multiple factors that cannot be formulated. The increasing residential population will not be able to support a substantial local neighborhood retail base on its own, though a few convenience uses may emerge. Instead, the focus is likely to continue to be restaurants and entertainment with some unique "destination" specialty goods stores added to the mix. There is likely to be considerable turnover in businesses due to the high -risk nature of these types of retail. 7. CDS I Spillette projects that over the near to middle term (up to seven years out) that Downtown could have average annual supportable absorption of 12,000 square feet, about half of which will be dining and entertainment uses. The current retail core area along Chaparral and nearby streets in the central part of Downtown will continue to be the preferred location for new establishments. In the long term, after more new residential and hotels open, absorption could increase to 20,000 square feet per year. 8. Supportable absorption could be accelerated by several factors: • Improving Chaparral Street by instituting two- directional traffic and improving sidewalks; • Creating destination public spaces along a relocated Shoreline Boulevard; • Adding public parking facilities; and • Adding a destination attraction, such as an amusement park or waterpark, within walking distance of the core retail area. CDS I Spillette 5 -383- Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas ECONOMIC AND DEMOGRAPHIC CONTEXT Regional Economic Trends The Corpus Christi Metropolitan Statistical Area (MSA) includes Aransas, Nueces and San Patricio Counties, illustrated in the map on the right. The city of Corpus Christi is the economic center of the MSA and the larger region served by the Coast Bend Council of Governments. The region currently has a population of 416,000 and an employment of 176,000. Employment trends The employment growth of the region has been positive with a compound annual growth rate of slightly over 1.0% since 1997, roughly approximating the U.S. employment growth. The Table on the following page illustrates the employment by selected economic sectors from 2000 to 2007. From an economic base standpoint, the strongest sectors are mining and construction. Other significant growth is occurring in the sectors, "educational and health services" and "leisure and hospitality" which accounted for 61% of the growth from 2000 to 2007. The sectors in the Corpus Christi MSA that have seen little job growth are manufacturing (due partly in technological advances) and financial services. Exhibit 1— Corpus Christi MSA Percent Employment Growth Exhibit 2— Corpus Christi MSA Employment Growth 2.5% - 2.0% - 1.5% 1.0% 0.5% 0.0% -0.5% - 180,000 175,000 170,000 165,000 160,000 155,000 150,000 • • • • • • • • • • p N N CO010100 00000 N N N el el 010100 N Source: Texas Workforce Commission, Texas A &M Real Estate Center Employment CDS i Spillette -384- 6 Market and Economic Feasibility Study - Tax Increment District #3 Corpus Christi, Texas Table 1- Corpus Christi MSA Employment Trends NAICS Industry Total Nonfarm Employment Annual - -- 2000 164,900 Average 2005 170,000 Employment 2006 173,500 2007 176,000 Change 2000 - 2005 - 2005 2007 5,100 - -'- 6,000 Total Private - 133,300 137,600 140,800 143,400 < 4,300 .. 5,800 Goods Producing - 28,700 :28,200 30,200 31,300 - -. - -500 - .3,100 Mining and Construction 15,700 17,600 19,000 20,200 1,900 2,600 Construction of Buildings 6,200 5,500 5,900 -- 6,400 -700 - .900 Manufacturing - 13,100 . 10,600 11,200 - 11,000 - -2,500 400 Service Providing - 136,100 -_ 141,800 143,200 144,700 5,700 2,900 -. Private Service Providing 104, 600 109,400 110,500 112,200 „ 4,800 ' 2,800 Trade, Transportation, and Utilities 29,900 ' 30500 30,800 - 31,700 600 1,200 Wholesale Trade 5,1005,3005,300 5,600 200 300 Retail Trade 19,300 ° 20,100:- 20,200 20,700 - 800 600 General Merchandise Stores : 4,100 -. 4,300 4,100 ;:. 4,100 -; 200: -200 Transportation, Warehousing, and Utilities '.5,400 - :5,100 5,300 5,400 ;. -300 -.: 300 Information - - 3,200. 2,600 2,600 2,500 -: -600 ;:•100 Financial Activities - ; 7,700 7,700 -- 7,900 8,100. - 0 400 Finance and insurance - -4700- 4,700 - 4,700 ; 4,800 0 -- -100 Professional and Business Services - '16,300 ,: 16,200 16,600 - '16,200 - -. 100 - -'- 0 Admin /Support/Waste Mgmt & Remed Svcs 10,600 .9,900. 10,000 " 9,400 700 -' -500 Educational and Health Services `. .- .22,900 26,100 - 25,800 - .26,500 -. 3,200 - 400 Hospitals 7,200 8000 - 7,400 7500 800 '; -500 Leisure and Hospitality - .17,700 - 19,800 20,500 20,900 ,: -2,100 ` 1,100 Other Services , 6,900 6,400 ;. 6,400 - 6,300 -500 -100 Government 31,600 - 32,400. - 32,700 -- 32,600 800 200 Federal Government > 5,800 6,200 6,500 :. 6,500 400 ,.300. State Government. 4,400 -. 4,500 4,600 - 4,600 100 100 Local Government 21,400 - 21,600 21,700 21,500 200 -. - -100 Source: Texas Workforce Commission, 2008 CDS I Spillette -385- 7 and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas The table on the right lists the major employers in the Corpus Christi MSA. The major employers in the region are disproportionately represented by government agencies (local and military) and health care institutions. The scheduled closing of the Naval Station Ingleside will adversely impact the regional economy but will not likely be devastating. According to the 2005 Report' on the announced closings, direct job losses in the three facilities will total 3,154 and the indirect job loss of 3,879 for a total of 7,033 jobs lost (4% of regional employment). There is some concern over the future of the Corpus Christi Army Depot helicopter repair center when the US involvement in Iraq and Afghanistan is reduced. The impact is unknown at this time. Table 2 - 2007 Major Employers — Corpus Christi MSA Employer CHRISTUS Spohn Health System Type of Product - Service Hospital Civilian Employment 5,400 Corpus Christi ISD School District :5,178 H.E.B. -- - Grocery Company - - 5,000 Corpus Christi Army Depot ' - - Helicopter Repair - - 4,876 City of Corpus Christi - - - City Government - : :3,171 Bay, Ltd. ` - - - `- Industrial Construction ' 2,100 Naval Air Station- Corpus Christi Flight Training -' 1,630 Del Mar College Junior College 1,542 Driscoll Children's Hospital Hospital 1,500 Corpus Christi Medical Center _ : Hospital C` =1,300 First Data Corporation Teleservices - - `1,200 -' Whataburger ' Corporate Offices - : 1,115 Sussed Holdings Corporation Convenience Stores : 1,100 Nueces County ' .- County Government 1,034 Texas A &M Corpus Christi -: Four -year' University'- .991 Flint Hills Resources : Crude Oil Refining 920 KiewitOffshore Services • Offshore Rig Manu. ` 900 Corpus Christi State School • Special -needs Facility 850 Valero Refining < - Crude Oil Refining ':824' Sherwin Alumina Alumina - 800 , Sam Kane Beef Processors - Beef Processing 800 Source: Corpus Christi Regional Economic Development Corporation Regional Profile, January 2008 Report of the Impact of the 2005 Base Realignment and Closure Committee Recommendations for Naval Station Ingleside, Naval Station Corpus Christi, and Corpus Christi Army Depot, prepared by Impact Data Source, December 2005 CDS I Spillette -386- 8 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Corpus Christi Regional Economy The Corpus Christi regional economy has two strong underpinnings: 1) a strong industrial base and 2) a healthy tourism industry. According to a recent report from the San Antonio office of the Federal Reserve2, the Corpus Christi economy has grown consistently, tracking the U.S. economy since 1987 (See chart at the right). Oil prices have been a key driver of the regional economy in the past but the recent oil price spike has not been felt in . Corpus Christi. Future economic growth in the Corpus Christi region is expected to less dependent on the oil and gas sectors and be generated by: • the expansion of trade through the port, • becoming a center for alternative energy sources (stimulated by the wind energy research activities being proposed for the area), • tourism, and • a burgeoning retirement community. Exhibit 3 — Corpus Christi MSA Job Growth Compared with Texas and the U.S. 1eMi„Jamny z 1973 100 -- .. — Li Change CAGR* . 4 -- - is 117 977 ffl O °IPM -• San Patricio Coun : 83821.'..117856 -- 34035 1.17% - : - Total 409 566 r«PsCrr>sa 152 012 1.09% Total Em Ewa fi — -_ A 231 844 - :71981 1.29% - 18 204 ' 25 617 '- 7 413 - `1.22% - - Total 178 067 257 461 =79 394 1.27% 1�_ 75 it , I9 7n 'St a5'9 t1 ,rte ) 1 1 1 1 1 1 91 ?99F W'¢F row:pr 1 FWRa �<(y Bureau of StraeSSCTeas A'o do ce 0ommbelbs Graphic From: VISTA, South Texas Economic Trends and Issues, Corpus Christi: An Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, Winter 2007/2008 Population and Employment Forecasts The table on the right illustrates the population and employment forecasts produced by the agency responsible for transportation planning in the region. Aransas County is not included because it is not in the MPO's planning area. The key result is that local planners are expecting long -term moderate growth in the region, consistent with recent trends in the 1.0% to 1.2% range. Table 3 — County Population and Employment Forecasts ` CAGR = Compound Annual Growth Rate Source: Corpus Christi Metropolitan Planning 0 ganization 2 VISTA, South Texas Economic Trends and Issues, Corpus Christi: M Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, Wnter 2007/2008 CDS I Spillette -387- 9 2006 Po • 'Anion 2035 Change CAGR* - -- NuecesCoun 325 745 443 722 117 977 1.07% San Patricio Coun : 83821.'..117856 -- 34035 1.17% - : - Total 409 566 561578 152 012 1.09% Total Em • to ment - Nueces Coun 159 863 231 844 - :71981 1.29% San Patricio Coun 18 204 ' 25 617 '- 7 413 - `1.22% - - Total 178 067 257 461 =79 394 1.27% ` CAGR = Compound Annual Growth Rate Source: Corpus Christi Metropolitan Planning 0 ganization 2 VISTA, South Texas Economic Trends and Issues, Corpus Christi: M Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, Wnter 2007/2008 CDS I Spillette -387- 9 Market and Economic Feasibility Study -Tax Increment District #3 Corpus Christi, Texas Demographic Trends Regional Demographics The table below illustrates some recent demographic trends for the Corpus Christi MSA. Demographic data in this report is from PCensus for Mapinfo, which is a reseller of Claritas, Inc. demographic data. According to PCensus estimates, over the past 7 years since the 2000 census, the region has added 15,178 persons (3.3 %) and 8,041 households. The PCensus 2007 population estimate is reasonably close to the U.S. Census estimate for July 2007 of 414,376. Table 4- Corpus Christi MSA Demographic Overview Characteristic 2000 Census % 2007 Estimate % 2012 Pro ection % Number 403,280 Number 416,458 Number 424 585 Population Population by Age Age 17 and under 115,341 28.6% " 113,270 27,2% 111,882 26.4% Age 18 and over 287,939 71.4 %. ..303,188 72.8% 312,703 73.7% Age 65 and over 46,481 11.5% 50,522 12.1% 55,946 13.2% Median Age ' 33.6 34.7 > 35.1 Population by Ethnicity and Race Hispanic or Latino 212,703 52.7% 231,670 55.6% 246,396 58.0% White (Not Hispanic) 165,523 41.0% 160,246 38.5% .154,279 36.3% Black or African American (Not Hispanic) 14,788 3.7% • - 13,794 3.3% 12,848 3.0% Native (Not Hispanic) ' 1,270 - 0.3% 1,376 0.3% 1,449 0.3% Asian (Not Hispanic) 4,461 1.1% ` 4,894 1.2% 5,213 1.2% Pacific lslander(NotHispanic) 201 0.0% " 338 0.1% 455 0.1% Other or Multiple Race • 4,334 1.1% 4,140 ..1.0% 3,945 a9% Households by Household Income 141;530 149,571 153,955 Less than $15,000 ' 29,193 20.6% "_25,186 , 16.8% 23,269 15.1% $15,000 to $24,999 21,252 15.0% 19,303 12.9% - 18,032 11.7% $25,000 to $34,999 19,508 13.8% 18,411 12.3% 17,469 11.4% $35,000 to $49,999 23,703 16.8% '' 23,553 15.8% 23,197 15.1% $50,000 to $74,999 24,997 17.7% 28,262 18.9% 28,933 18.8% $75,000 to $99,999 12,134 8.6% 15,433 .10.3% ' 17,153 11.1% $100,000 to $149,999 6,970 4.9% 13,321 8.9% 17,261 11.2% $150,000 to $249,999 2,635 1.9% 3,997 2.7% 5,871 3.8% $250,000 to $499,999 836 0.6% 1,513 1.0% 1,873 1.2% $500,000 or more ` 302 0.2% 592 0.4% 897 0.6% Median Household Income $35,514 $42,569 $46,774 Source: PCensus for Mapinfo, Tetrad Computer Applications, 2008 CDS ( Spillette -388- 10 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Regional Demographic Trends According to the previously cited report from the Federal Reserve, the Corpus Christi region's recent population trends have been somewhat weak. One such measure of population growth is the net population migration. A region can have positive population growth because of a net number of births over deaths yet still have a net out - migration of people from the community. This appears to be the case for the Corpus Christi region in the last decade. Generally, if area businesses are prosperous and creating new jobs, the region will have net immigration. According to the Fed report, "Corpus Christi experienced positive net domestic migration through 1997, but it fell to negative in 1998, where it remained through 2003. Net domestic migration became positive again in 2004 and 2005, but just slightly. International immigration increased somewhat in the 1990s, but it too has experienced a general downward trend in the 2000s. Net internal growth has also slowed since the 1980s, with births decreasing and deaths increasing. Overall population growth and, in particular, net migration show that Corpus Christi has grown sluggishly over the past two decades." Exhibit 4 — Net Population Migration Corpus Christi MSA Graphic From: VISTA, South Texas Economic Trends and Issues, Corpus Christi: An Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, Winter 2007 /2008 CDS I Spillette 11 -389-- Market and Economic Feasibility Study -Tax Increment District #3 Corpus Christi, Texas City of Corpus Christi Demographics The City of Corpus Christi has, within the municipal boundaries, over two- thirds of the residents of the region with a current estimated population of 284,324. Like the region, the City's growth over the past seven years has been modest (6,870 added, 2.5 %). The table below illustrates the historical and expected future population by age group. The population of the City is getting slightly older with most of the change occurring in the 35 -44 year old group. Table 5 - Population and Age Trends - City of Corpus Christi Total Age Group Total Population ". 2000 Census Number 277,454 Share ;' 2007 Es'imate Number 284,324 Share -.- - 2012 Esimate Number 288,047 Share Change 2000- 2007 - 6,870 2007 - 2012 3,823 Age 0 t 4 - 21,544 :7.8% 21;789 -`7.7% - 21,673 7.5% '. 245 (116) Age 5 to 9 ; 21,592 ' 7.8% 21,293 r 7.5% -; 21,262 7.4% (299) (31) Age 10 to 14 = 21,487 7.7% 21,100 7.4% :. 20,800 .. 7.2% - -. (387) (300) Age 15 to 17 -, 13,439. '. 4.8% - 12,597_ - `'4.4 %. _ 12,127 ::4.2% (842) (470) Age 18 to 20 -: 713,329 - 4.8% ' 12,999 ` 4.6 % ' 12,707 4.4% :... (330) _' - (292) Age 21to.24'- 16,058 _`5.8% 17,154 - '6.0 %- 16,340 5.7% z` -1,096 ' (814) Age 25. to 34 ,: 37,792 : 13.6% - - 37,489 13.2% -. 39,495 13.7% - - (303) 2,006 Age 35 to 44 _ '. 43,275 -. 15.6% . 37,599 -13.2% 34,846 - 12.1% '(5,676) (2,753) Age 45 to 49 19,928 7.2% 20,943 '7A% '- 19,124 6.6% - .:'.1,015 (1,819) - .Age 50to54 - .16,657 6.0% 19,572 6.9% '' 19,951 6.9% '.2,915 -379 Age 55 to 59 12,024 4.3% . 16,689 5.9% : 18,379 ` 6.4% 4,665 1,690 60 to 64 _:,._ "9,527 :3.4 % - `12,418 -; 4.4% ;.15,516 -5A% - - -- 2,891 - 3,098 Age 65to.74` >' 16,944 '6.1% ,16,894 -5.9% - ..19,253 1,6.7% = ".(50) 2,359 - -- Age 75 to 84 - -- - 10,$33 a 3.8% 11,804 ,' -4.2% -. 11,628 - 4.0% - 1,271 - (176) Age 85 and over ':- :3,325 -:1.2% = 3,984 -- 1.4% --. -4,946 1.7% .: 659 -962 Age 16 and over 208,504 75.1% 216,036 76.0% 220,361 76.5% - 7,532. 4,325 Age 18 and over 199,392 -71.9% 207,545 73.0% 212,185 73.7% - 8,153 4,640 Age 21 and over 186,063 67.1% 194,546 68.4% 199,478 69.3% 8,483 4,932 Age 65 and over 30,802 11.1% - 32,682 11.5% 35,827 12.4% - 1,880 3,145 Median Age - - 33.2 - 34.4 - 34.9 - +1.2 +1.7 Average Age '. - 34.7 - 35.9 -- - 36.7 +1.2 +0.8 Source PCensus for Mapinfo, Tetrad Computer Applications, 2008 Population and Employment Forecasts for City of Corpus Christi Table 6- City Population and Employment Forecasts The table at the right shows the forecast of population and employment provided by the MPO. These forecasts demon - strate long- term growth rates consistent with past trends. 2006 2035 Change CAGR• Total Em lo ment • CAGR = Compound Annual Growth Rate Source: Corpus Christi Metropolitan Planning Organization CDS I Spillette -390- 12 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Downtown Demographics In the 2000 Census, only 1,389 persons were enumerated in area designated for the downtown TIF District shown below. According to the PCensus estimates, that number has declined to 1,324 in 2007. Exhibit 5— Proposed Downtown TIF District CDS I Spillette -391- 13 Market and Economic Feasibility Study -Tax Increment District #3 Corpus Christi, Texas The persons living in the downtown TIF are substantially older than the residents of the City are and the region with almost 29% of the population over the age of 65 compared with approximately 11% in the City and the region. As is the case with most downtowns, there are fewer children under the age of 18 (12 %) when compared to the City and region (27 %). Table 7 - Population and Age Trends - Proposed TIF Age Group Total Population" 2000 Number 1,389 Census Share - 2007 Estimate Number - -_ 1,324 Share - 2012 Estimate Number "'1,234 Share : Change 2000- 2007 ': (75) 2007 - 2012 -': (90) Age 0 to 4 - 55 '; 4.0% : 52 3.9% 47 33% (3) (5) Age 5 to 9 39 2.8% 53 4.0% 50 41% 14 (3) Age 10 to 14 39 : 2.8% 48 3.6% 48 ;'.3.9% 9 'Age 15 to 17 .27. 1.9% 20 .:1.5% 23 -- '1.9% -:. (7) 3 Age 18to20 -. 40 2.9% 31 ;:' 2.3% 29 - ; -23% (9) - -(2) Age 21 to 24 i ' 65 " 47% --. 41 ': 3.1% :- 34 - . -.2.7% ` -`- (24) `z (7) Age 25 to 34 - 175 ': 12.6 % : 154 - -11.6% <. 119 - 9.6% `: (21) -. (35) Age 35 to 44 - -,204 - 147% - 166 -:. -123% _- 150 '?12.2% (38) . <(16) Age 45to49 -112 - • 8.1% # 108 (: 8.2% - ' 91 -73% :: (4) - ::(17) - =: Age 50 to 54 89 - 6.4% i ° -104 `' 7.9% 98 - 7.9 %:' 15 ` (6) - ;- :Age 55to59. -i: 78 5.6% 90 6.8% -: - 95 - '73% ': 12 - 5 Age 60 to 64 58 - 4.2% 71 5A% > 73 - >. 5.9% :• . 13 Age 65 to 74 - 116. _' 8.4% 108 - -: 8.2% - - -, 114 - -:9.2% (8) _ 6 Age 75 to 84 - 162 - ,11.7% 157 - -- :11.9% - - 145 '::11.7% : (5) -- . (12) Age 85 and over ;'. 131 1, 9.4% 119 9.0% 118 9.6% (12) (1) •. Age 16 and over - 1,248 89.8% .. 1,166 - 88.1% : -1,082 -. 87.7% ',:(82) (0) Age 18 and over - ` .- 1,229 -' 88.5% ;- 1,150 86.9% 1,066 i'. 86.4% -, (79) .. (0) .. Age 21 and over , , .1,189 -. 85.6% 1,119 .. ".;84.5% ? ` 1,037 -: - 84.0% - -. -. (70) `- (0) Age 65 and over 409 29.4% 384 - 29.0% 'i 377 . 30.5% (25) (0) Median Age - -. -47.29 - `: 49.41 -51.32 Average Age - - 48.92 - -.- 4932 :` .50.25 Source: PCensus for Mapinfo, Tetrad Computer Applications, 2008 CDS ( Spillette -392- 14 Market and Economic Feasibility Study - Tax Increment District #3 Corpus Christi, Texas The tables on this page illustrate household characteristics for the downtown TIF compared with the City of Corpus Christi. Of the 804 households in the TIF only 233 (29 %) are family households compared with (71 %) for the City as a whole. The table at the bottom of the page shows that the average household size was also substantially lower in the TIF (1.64) compared to 2.75 persons per household in the City. Table 8 - Household Characteristics Proposed TIF Household Type Non - family households 2000 No. 620 Share 2007 No. 571 Share 2012 No. Share 525 1 person - 544 87.6% 510 89.4% - 474 90.4% 2 persons - - - 69 11.2% 55 9.6% 45 8.6% 3 persons 6 1.0% 5 0.9% 5 1.0% 4ormorepersons - .1 0.2% 0 0.1% 0 0.0% Family households 242 Family households 233 - 216 - 2 persons : - 130 53.5% 127 54.7% 119. 55.3% 3 persons 52 21.3% 49 21.1% ,.46'21.1% 25.0% `4 or more persons '`61 25.2% 56 24.3% - .52 23.7% City of Corpus Christi Household Type Non - family households 200.0 No. ":28,326 Share : 2007 No. 29559 Share 201.2 No. Share 30,159 1 person - 22,956 81.0% 24,857 84.1% 25,765 85.4% 2 persons - -- 4,428..'15.6% 3,859 13.1% 3,572. 11.8% 3 persons - -. 633 -2.2% -.594 i2.0% - 582 !1.9% 4 or more persons - 309. 1.1% 249 0.9% '. 240 0.8% Family households ': 70,465 - 73,664 - 75,252 '- 2 persons :. - 25,058. 35.6% 27,170 36.9% 28,284 37.6% 3 persons • 17,334 24.6% 18,436 25.0% 18,941 25.2% 4 or more persons 28,073 39.8% 28,058. 38.1% 28,027 37.3% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2008 Table 9 - Household Size Proposed TIF vs. Corpus Christi Average Household Size Proposed TIF City of Corpus Christi 2000 1.65 2007 2012 1.64 1.62 2.75 2.75 2.67 Source: PCensus for Mapinfo, Tet ad Computer Applications, 2008 CDS Spillette -393- 15 Market and Economic Feasibility Study - Tax Increment District #3 Corpus Christi, Texas The tables on this page illustrate the household income characteristics of the area in the proposed downtown TIF district and the City of Corpus Christi. Overall, the downtown area has substantially more households in the lowest income category (43.4 %) compared with only 19.8% in the City. The table at the bottom of the page includes a comparison of average, median and per capita household income for the two geographies in constant 2007 dollars. According to the PCensus estimates, household incomes in the downtown area are declining somewhat - a bit more than the city as a whole. Table 10 - Household Income Distribution Proposed TIF vs. Corpus Christi - Nominal Dollars PROPOSED TIF Total Households;'. 20 No. 857 0 Share 2007 No. 804 Share 2012 No I 741 Share Less than $15,000 372 43.4% 322 40.0% 277 37.4% $15,000 to $24,999 135 15.8% 130 16.2% 118 15.9% $25,000 to $34,999 113 13.2% 109 13.6% 95 12.8% $35,000 to $49,999 .94 10.9% 79 9.9% 89 12.0% $50,000 to $74,999 56 6.5% 76 9.4% 70 9.5% $75,000 to $99,999 34 - 4.0% 27 3.4% 30 4.0% $100,000 to $149,999 38 4.4% 41 5.1% 36 4.9% $150,000.to $244,999 9 1.1% 13 1.6% 18 2.4% $250,000 to $499,999 3 0.3% 3 0.3% 4 0.6% $500,000 or more : CORPUS CHRISTI - Total Households 4 98,779 -`0.4% . 4 103,223 0.5% _. 4 105,411 0.6% Less than $15,000 19,524 19.8% 16,826 16.3% ' 15,470 14.7 °% "- $15,000to$24,999 14,684 14.9% 13,019 12.6% 11,995 11.4% - $25,000 to $34,999 13,319 13.5% 12,623 12.2% 11,884 11.3% $35,000 to $49,999 16,639 16.8% 16,177. 15.7% .15,757 15.0% r`- $50,000 to $74,999. - 17,987 18.2% 19,743 19.1% 20,028 19.0% $75,000 to $99,999 - 8,734 8.8% 11,013 10.7% 12,069 11.5 %. $100,000 to $149,999 -.5,159 -5.2% 9,462 9.2% 12,083 11.5% $150,000 to $244,999 - ;1,873 1.9% 2,847 2.8% 4,167 4.0% '- $250,000 to $499,999 614 0.6% 1,059 1.0% 1,299 1.2% ':. $500,000 or more ; 246 0.3% 454 0.4% 659 0.6% Proposed TIF vs. Corpus Christi Incomes in Constant $ Measure Geography Average household income 2000 Adjusted 2007 Projection Change % Proposed TIF ' $37,677 $36,349 -3.5% City of Corpus Christi $57,754 $57,671 -0.1% Median household income .: Proposed TIF $22,956 $21,147 -7.9% City of Corpus Christi $43,954 $43,478 -1.1% Per capita household income Proposed TIF $25,105 $24,006 -4.4% City of Corpus Christi $20,882 $21,233 1.7% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2008 2000 Income statistics where adjusted to 2007 dollars using the CPI -U CDS I Spillette -394- 16 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas General Citywide and Downtown Development Activity Single Family Building Permit Trends The charts on the right illustrate the recent history of single - family home development in the Corpus Christi region (top) and City of Corpus Christi (bottom). Both areas saw activity increases up to 2005 with slight declines in 2006 and sharper declines in 2007. These data mirror Texas trends of single - family home sales due to tightening credit in sub -prime mortgages. The light blue baron the City graphic represents an extrapolation to the entire 2007 year, because the data provided by the City of Corpus Christi only included permits summary to April of 2007. The city straight -line estimate for single - family permits in 2007 would be 1,150. The table on the following page presents data on residential permits for the City of Corpus Christi. Exhibit 6 — MSA Single - Family Building Permit Trends Corpus Christi MSA nImi ....... ■scars caner+ ss soma sans sna vs sws ssuw 5. Source: U.S. Bureau of the Census and Real Estate Center at Texas A &M University. extracted from Real Estate Market Overview 2008. Corous Exhibit 7— City Single - Family Building Permit Trends City of Corpus Christi Source: City of Corpus Christi Permits Office CDS 1 Spillette -395- 17 l,9�1 Source: City of Corpus Christi Permits Office CDS 1 Spillette -395- 17 Market and Economic Feasibility Study - Tax Increment District #3 Corpus Christi, Texas The table below is provides detail on residential permits in the City. Table 11- Residential Building Permit Trends City of Corpus Christi (All Costs are in Millions of $) Single Family YEAR-) 4.MEASURE Permits 2002 937 2003 1,143 2004 ' 1,220 2005 1,352 2006 1,318 2007'" 368 TOTALS ' 6,338 Cost $96.95 $108.24 $136.81 $169.96 $165.98 $44.74 $722.69 Condos / - Townhouses Permits • 126 - 96 : 127. 161 ": 42 > 552 Cost - = " $8.77 . $5.94 - $13.39 $15.82 ' -$3.23 $47.15 Two Family -. Homes - Permits 11 `- 13 13 ' '31 18 -'0 . -86 Units 22 24 - 26 62 36 0 - 170 Cost = $1.52 - $1.79 $1.96 $3.73 $2.63 ' $0.00 $11.62 . 3.4 Family :. -- Permits 19 7 '- 77 2- ^ 54 ': 2 -161 Buildings 19 -' 7 - 77 -.- 2 '- 54 2 161 Units 69 19 " " -- 305 - 6 216 623 Cost = , $4.69 '. $1.27 ;'$11.43 $0.14 ' $7.74 $0.28 $25.56 5+ Family - `- Permits 11 24 51 ': 19 64 - - -0 -'169 Buildings 11 24 -'. 51 19 - 64 ": - -0 -169 Units 158 -= 162 `• -. 554 - 310 " " 1,076 - - -:0 2,260 Cost -; 6.742 =4.044 16.677 - °12.328 '- 49.018 -o000 $88.81 Totals Permits 978 1,313 ', 1,457 ' 1,531 1,615 ' 412 ' 7,306 Buildings 978 "1,313 -- .1,457 : .1,531 1,615 412 '7,306 Units 1,186 ` "1,474 "2,201 '' 1,857 ` -' 2,807 418 '' 9,943 Cost $96.95 $108.24'$136.81 $169.96 5165.98 544.74 $722.69 Source: City of Corpus Christi, Building Inspection Division * For 2002, Condos and Townhouses were included in the one - family totals. " For 2007, the data is for the months of January, February, March and April. Multi- family (5+ units) construction peaked in 2006 with the construction of 1,076 units in the City. The average cost per unit in 2006 was $45,555, a substantial increase from the $39,700 average unit value in the previous year. CDS Spillette 18 -396- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Commercial Building Permit Trends The charts on the right illustrate the recent history of commercial development in the City of Corpus Christi for New Construction (top) and additions & remodeling to existing commercial (bottom). The total value of the construction estimated in the permits is shown as the red line on the charts. Extrapolating the first 4 months of 2007 to a full year would produce an estimated 447 permits and a total estimated value of $120.7 million both of which would be lower than 2006. Additions and remodeling has been relatively static over the period 2002 to 2006 but 2007 was likely to be a low year. Extrapolating the first 4 months to the full year would produce estimates of 492 permits valued at $127.0 million. Exhibit 8 — Commercial Building Permit Trends City of Corpus Christi New Construction I L =IIKF S -.- Vilma P•e s • Additions & Remodeling Existing Commercial ■ 1■ 1 =IIKF S -.- Vilma P•e s • Additions & Remodeling Existing Commercial Source: City of Corpus Christi Building Inspection Division . For 2007, the data is for the months of January, February, March and April. CDS ( Spillette -397- 19 ■ 1■ � ■1 Source: City of Corpus Christi Building Inspection Division . For 2007, the data is for the months of January, February, March and April. CDS ( Spillette -397- 19 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Major City / Regional Developments Port The Port of Corpus Christi is located less than 2 miles north of the Corpus Christi downtown. The port is a main contributor to the economy of the region today and will likely be a larger contributor in the future. With the closing of Naval Station Ingleside in 2010, 912 acres of Navy property will revert to the Port of Corpus Christi. The Port has engaged a master planner to help define the new best use for these properties and to find an investor or investors who would commit the resources to redevelop- ment that would recapture the jobs lost due to BRAC. The future of Texas ports will likely be enhanced with increased movement of goods from Mexico and improvements to the Panama Canal which should increase shipments from Asia. Exhibit 9 — Port of Corpus Christi Source: Port of Corpus Christi website, htto://www.00rtarcorouschdsti.com/Facilities.html Exhibit 10 — Naval Station Ingleside Source: Port of Corpus Christi website CDS Spillette -398- 20 Market and Economic Feasibility Study - Tax Increment District #3 Corpus Christi, Texas Military- Related Activities Military spending makes up a substantial portion of the economic base of the Corpus Christi region. Table 12 - Summary of Military Operations in Corpus Christi Base /Installation Naval Air Station- Corpus Christi Branch of Service Navy Description of Operations Pilot training, helicopter mine ' countermeasures squadron, Coast Guard City Corpus Christi Total Person- nel r Status: Closing or Expanding Downsizing Naval Air Station- Ingleside Navy - Homeport forminecountermeasures ships and coastal mine hunters - Ingleside -3,000 Closing 09/2010 Coast Guard Air Station -_ Coast Guard Search and rescue missions 97 Operating Corpus Christi Army Depot Army Repair and overhaul of helicopters for - Army, Navy, Marine Corps Corpus . Christi - - - Expanding - Source: Corpus Christi Regional Economic Development Corporation * Total employment not available, civilian employment at the NAS -CC is estimated at 1,630 and at the Corpus Christi Army Depot at. 4,876. Naval Air Station Corpus Christi (NAS -CC) NAS -CC is the major military installation in the Corpus Christi area. NAS -CC in the Flour Bluff area, ten miles southeast of the downtown Corpus Christi and twenty -five miles south of NAVSTA INGLESIDE across Corpus Christi Bay. The major tenants of NAS -CC include the Corpus Christi Army Depot, the Chief of Naval Air Training; U.S. Coast Guard /Air Station; Drug Enforcement Agency; Medical Naval Hospital; Mine Warfare Command; and Defense Distribution Depot. The 2005 Base Realignment and Closures (BRAC) report recommended the downsizing of NAS -CC by moving some operations. Corpus Christi Army Depot (CCAD) • CCAD is the Army's major facility for the repair and overhaul of rotary wing aircraft for the Army, Navy, Marine Corps, and Air Force. CCAD performs helicopter overhaul, repair, modification, retrofit, and modernization. CCAD occupies nearly 140 acres leased from the NAS -CC and is the largest industrial employer in South Texas. Naval Station Ingleside Naval Station Ingleside is located on the northern shore of Corpus Christi Bay, 12 miles northeast of Corpus Christi. In 1991, Ingleside became the home port for mine countermeasures ships and coastal mine hunters. The 2005 BRAC report recommended closing Ingleside in 2010. About 912 acres will revert to the Port of Corpus Christi. The U.S. Department of Defense estimated that the BRAC 2005 recommendations - closing of Ingleside and the recommended realignment of NAS-CC - could result in a maximum potential reduction of 7,033 jobs (3,154 direct jobs and 3,879 indirect jobs) over the 2006 -2011 period in the Corpus Christi, TX, Metropolitan Statistical Area, which would be 3.1 percent of economic area employment. The largest loss would occur at NAVSTA INGLESIDE at 4,616 total (direct and indirect) jobs. NAS -CC is projected to lose 2,193 jobs and CCAD would lose 224 jobs. CDS Spillette 21 -399- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Colleges The two major institutions of higher education in the Corpus Christi area are Texas A &M University — Corpus Christi (TAMU -CC) and Del Mar College. TAM U-CC offers over 60 Degrees including Masters and Doctorate graduate programs. TAMU -CC currently has approximately 8,600 students and has been growing at the average rate of 244 students per year since 2002. TAMU -CC is located on 240 -acre Ward Island approximately 7X miles south of downtown Corpus Christi. TAMU -CC is embarking on an aggressive master plan on Ward Island and in the South Guth Park are on land that was a gift from City of Corpus Christi. Plans call for expansion of Recreational / Athletic fields, ROTC facilities, conference space, parking, physical plant, boat storage and graduate /married student housing. The plan includes the retention of the core academic programs and undergraduate on the Ward Island campus. Currently the majority (53 %) of the TAMU -CC students were from the Corpus Christi area but that percentage has been declining. In the fall of 2006, there are 4,036 students from outside the Corpus area and that number has been increasing at the rate of 230 each year since 2002, making up the bulk of the net increase in students. Del Mar College is a comprehensive community college serving over 24,000 students annually. The College has over 150 different credit and noncredit programs. The vast majority of Del Mar's students are from the Corpus Christi area. Exhibit 11— Enrollment - Texas A &M University Corpus Christi 8,800 8,600 8,400 8,200 8,000 7,800 7,600 7,400 7,200 7,000 Fall Enrollment 2002 2003 2004 2005 2006 Source: Texas A &M Corpus Christi, Fact Book, Institutional Effectiveness Office of Planning & Exhibit 12 — Texas A &M University — Corpus Christi Master Plan Aerial Rendering Looking Wes CDS Spillette -400- 22 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Airport Corpus Christi International Airport (CCIA) is located on 2,415 acres of land, approximately 8 miles west of downtown Corpus Christi. Commercial passenger airlines serving the airport include American Eagle, Continental Express, Delta, and Southwest Airlines. In addition, to those, cargo service is provided by DHL and UPS. Charter service and general aviation services are also provided at the CCIA. The Master Plan for the airport, completed in 2007, has staged plans for three Planning Activity Levels (PAL) 1, 2, and 3 each which would be triggered by increasing levels of airport activity. At the lowest level, PAL 1, the total expenditures would be $26 million for a runway extension, terminal improvements, parking and rental car enhancements. Table 13 — Corpus Christi International Airport Master Plan Components Pach t7 Carreat Capacity R , aired PAL PAL 3 7.508 9:000 6.081 'Batt Counter Positions 51 45 Checked Baggage Seentiry: Scanning (aa:) walk -Tkn, Metal Detector X -rn 12 16 z Concessions. - her of stores Baggage Claim D ¢f) ) 3 4 175 2 4 169 211 219 1495 Vehicle Club feet 500 ABP!. a ofstatians) 1 48,000 7 639 58 16 3 3 6 8 247 270 788 606 8 51970 39 5401 3,135 Source: Corpus Christi International Airport Master Plan Update, February 2007, PGAL/Parsons Brinkerhoff Retail Incentives The City of Corpus Christi adopted a "Large Retail /Mixed Use Development and Redevelopment" policy in June 2007. The policy provides guidelines for the granting of tax incentives for retail development. Since its adoption, the City has awarded a $40 million tax incentive for a new mall development (Crosstown Commons) and $23 million in tax incentives for the redevelopment of Padre Staples Mall. Both projects will receive this incentive via the sharing of increases in property and sales tax within their respective properties. The City had experienced a loss in retail sales tax revenues to surrounding areas such as San Antonio, Austin and the Valley. The intent of the policy is to recapture these lost revenues and enhance shopping opportunities for local residents as well as out of town visitors. Implications for Downtown Most of the previous discussions (Port, Airport, Colleges, and Retail Incentives) suggest increased investment and business and economic activity for Corpus Christi. Only the declining military presence will likely have a negative effect on the regional economy and even in that case, the expected losses, as a proportion of the regional economy, are in the 3 -4% range. On balance, the plans for new development in the Port of Corpus Christi at the Ingleside site, the expansion plans for TAMU -CC and the airport expansion plans suggest a positive investment in the community. The effects on downtown should be positive. CDS Spillette 23 —401— Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Exhibit 13 — Land Use in the Proposed District The map at the right shows the boundaries of the proposed district in the green dashed line. The existing land uses are also shown. ®qc I.41- mils ` a - ..r.— mo rw " —•s— &s w .. p.e` a w w- ,�. ReparedWy.Mee Pitting Date TUSday. Dabber I4 2 079:14 : :41 AM Ihgect Sire: CA" dCwp.n Chi sUOe*k nl Services CDS Spillette -402- 24 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Major initiatives Downtown (TIF and non -TIF) Bayfront Master Plan In a November 2004 bond election, Exhibit 14— Bayfront Master Plan — Shoreline Drive voters approved Phase 1 of the Bayfront Master Plan to improve the experience of visitors and residents to the area. Phase 1 included $11.6 million of projects: • Shoreline Boulevard realignment to move the northbound lanes to the current location of the median. The old lanes will be replaced with parkland that will include trees, landscaping, space for public art and new walkways. • Creation of a new park and public area adjacent to the existing seawall. Overall, the Bayfront master plan calls for improved parking, more parks, pedestrian trails and landscaping along the northern portion of Shoreline Boulevard. It will be developed in phases. Realignment Before After CDS I Spillette -403- 25 Market and Economic Feasibility Study —Tax Increment District 43 Corpus Christi, Texas Other Infrastructure Improvements The City of Corpus Christi has made substantial investments in the downtown area. Since 2000, almost $150 million has been invested in drainage seawall, beach, convention and entertainment facilities The table at the right describes the general categories and costs of recent and "in progress" construction projects. The majority of current work is related to Phase 1 of the Bayfront Master Plan. Table 14— Infrastructure Improvements in Downtown 200- 2008 Completed Projects, Costs in Millions Improvement Type Cost Storm Water Pump and Drainage Improvements $4.5 Seawall, Beach and Marina Repairs and Improvements - $46.6 Convention Center, Multi Purpose Area Repairs & Improvements $67.5 Professional Minor League Baseball Stadium $24.6 Miscellaneous - - $5.2 - - Total $148.4 Projects in Progress, Costs in Millions Improvement Type Shoreline Realignment, Phase 1 - - - Cost ;! $9.7 Shoreline and Ocean Drive Overlays $3.9 Heritage Park Repairs and Improvements $0.6 Miscellaneous $0.3 -. -- _ Total $14.5 Chaparral improvements The Downtown community has proposed a modifications to Chaparral Street through the retail / entertainment core to accommodate two -way traffic, widen and improve sidewalks and streetscape, and relocate on- street parking to adjacent blocks on the cross streets. Proponents believe that this will improve traffic flow and connectivity between the entertainment area and the civic / cultural complex at the north end of Downtown. Memorial Coliseum After numerous public meetings and surveys, a committee studying the possible reuse of the Coliseum has determined that the Coliseum should have both public and some form of private uses promoting economic development and bringing in private investment for the redevelopment of the site. The facility is approximately 50 years old and contains 2,615 permanent seats with a potential capacity of 5,300 with moveable chairs. The total building covers 73,500 square feet; it has 68,000 square feet of usable area. A 2003 study found that the building is structurally sound and rehabilitation and reuse was a cost - effective option. However, opinion is split in the city over whether to pursue reuse the building or to demolish and repurpose the site in accordance with the planned Shoreline Boulevard realignment. Memorial Coliseum and Shoreline Boulevard CDS I Spillette -404- 26 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas OFFICE MARKET Downtown and citywide existing inventory Corpus Christi is estimated to contain 6.6 million square feet of office space in nearly 250 buildings across the city. About 52 percent of this space is considered Class B in quality. The city totals approximately 880,000 square feet of Class A space. Most office inventory is located in the Downtown (over half of total space), Mid -City, and Southside markets CDS 1 Spillette is not aware of any significant speculative office that has been built recently in Corpus Christi, although the market has reportedly added build -to -suit / owner -user properties. Table 15 — 2007 Office Space (Non - Medical) within Proposed TIF Zone Property Address 400 Mann Building -. 600 Building 400 Mann Year Year Built Renov. Sq.Ft. 1984 118,385 AEP / Central Power & Light American Bank Plaza 600 Leopard 1962 140,000 539 North Carancahua 1986 Bank of America Building, North ., Tower First Capital Bank Building Frost Bank Plaza 711 North Carancahua 1963. <: 280,744 234,271- 500 North Shoreline 1981 309,035 500 North Water : 1960 1999 133,888 One Shoreline Plaza -` Shoreline Terrace 802 North Carancahua 1983 800 North Shoreline 1988 315,038 361,000 719 South Shoreline 1947 : 1981 1986 315,000 Tower!! 555 North Carancahua 1982 Wilson Plaza 606 North Carancahua 1972- 1953 1988- 1995 289,462 270,000 Wells Fargo Tower 615 Upper Broadway 1941 1974 320,000 Total large properties 3,086,823 All others 347,162 Total Proposed TIP Note: Does not include Petroleum Tower. Source: Building Owners and Managers Association of Corpus Christi, 2006 Commercial Real Estate Directory 3,433,985 CDS I Spillette -405- 27 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Table 15 provides a summary of major office properties within the proposed TIF Zone. Actively leased buildings of 100,000 square feet or more account for nearly 3.1 million square feet of non - medical space. Another approximately 347,000 square feet are in smaller properties. Two properties, the Frost Bank Plaza and One Shoreline Plaza, are considered Class A properties; the remainder are Class B or C. Market conditions — Downtown and citywide The office market was described to CDS I Spillette by a leasing professional as a "tenants' market." A Building Owners and Managers Association of Corpus Christi (BOMA) publication from 2006 indicated that Class A properties in the Southside market area showed the strongest occupancies and rates at that time, particularly Class A properties (albeit from a relatively small inventory totaling approximately 203,000 square feet). Lease rates have reportedly been flat. In Downtown specifically, office demand has traditionally been generated by a limited set of users. The most significant has been independent oil and gas firms, followed by law firms, engineering companies, accountants, and financial services. Major public oil and gas companies such as Exxon and Conoco used to lease large blocks of space in Downtown buildings, but have left the city over the last 20 years. Large companies such as H -E -B and TRT Holdings also left Corpus Christi. Numerous persons reported to CDS Spillette that there is no major economic driver of demand for traditional office space today in Corpus Christi, in contrast to cities such as Houston, Dallas, and Austin, where major corporate national and regional headquarters and financial services firms have been expanding or relocating to drive the office market. Virtually all of the demand in Corpus Christi is from local businesses, as opposed to expansions or relocations from other cities. Downtown overall vacancy rates are estimated to be roughly 20 percent. For the Class A properties, Frost Bank Plaza is currently 93 percent occupied and One Shoreline Plaza is at 82 percent. Some floors of One Shoreline Plaza, which opened during the depression in the oil and gas market of the mid to late 1980s, have reportedly never been leased. Taking advantage of slack demand from traditional users, call centers were increasing demand for blocks of space in Downtown in recent years. Such non- traditional demand has reportedly leveled off. Frost Bank Plaza leased space to a call center which has since left that property due to tenant incompatibility; another call center, with assistance from the City's 4A sales tax fund, has since moved into the building. Occupancy rates in lower quality properties are estimated to be generally lower than the Class A rates, with some properties having vacancies of 30 percent or more. One property not included in the office inventory is the Petroleum Tower, with 300,000 square feet of renovated but completely unoccupied space. CDS I Spillette -406- 28 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Frost Bank Plaza achieves the highest contract lease rates in Downtown at $18.25 per square feet gross. One Shoreline Plaza leases at triple net rates of about $12.00 per square foot; however, effective lease costs are estimated at about $20.00 after expenses are included. These rates are considerably lower than those being achieved for Class A properties in larger Texas cities, which have pushed past $25.00 per square foot in popular locations. Rates for Class B buildings in Downtown are reportedly about $12.00 to $14.00 per square foot. As would be expected, small tenant spaces lease for higher rates; one leasing professional mentioned that small suites lease for $24.00 per square foot in of his buildings. The same person commented that Downtown is the best office value for medium to large users. Outlook and Projections for Traditional Office Space Downtown Referring back to the employment trends shown in Section II, most of the industries which could drive demand for traditional office space, such as financial services and business services, are growing very slowly if at all. Oil and gas firms have relocated regional employment bases out of Corpus Christi. Downtown office demand, for the foreseeable future, will come from local businesses that expand as the region's population base slowly' expands. Existing economic drivers such as Port- related business, petrochemical refining, and tourism are not expected to generate significant demand for multitenant office space. With a large amount of vacant space awaiting occupancy Downtown, including the possible eventual return of the Petroleum Building to the market, CDS l Spillette does project any new office - driven construction in the near to middle term. As older buildings are rehabbed for uses such as residential and retail, small amounts of incidental office space may enter the Downtown inventory. Approximately 87,000 square feet of Class A space are available at present, and hundreds of thousands of square feet of Class B space are as well. Thus CDS j Spillette is confident that existing vacant space will be sufficient to handle any increases in office demand for at least seven or eight years, and quite possibly longer if the city's economic base remains as is. As the better current buildings slowly fill up their available space over the years, their property value will increase. In contrast, lesser quality properties will likely deteriorate in quality as it will not be profitable to undertake renovations. These properties will likely remain at low occupancy, and some may close down and be removed from active inventory if occupancy falls low enough. The natural result will be a decline in the value of these properties, to some extent offsetting gains elsewhere. It is possible that the slow growth of the regional economy, combined with a shrinking office inventory in Downtown, may lead to new office construction within the proposed TIF in the long term (10 years or more in the future). Such new construction would almost certainly be a Class A property; a reasonable estimate of size would be 300,000 square feet, based on the size of existing properties. CDS l Spillette 29 -407- Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Medical Office in Downtown The southern end of Downtown is dominated by the Christus Spohn Shoreline Hospital, a 300 -bed facility located on the south side of Morgan Avenue at Ocean Drive, just outside but adjacent to the southern boundary of the proposed TIF. Christus Spohn reports that there are no expansion plans for the hospital at this time. Medical - related properties are located in the immediate vicinity of the hospital, though mostly south of Morgan. Many of the existing medical office buildings in the area are old and in need of replacement. However, the lease rates required to justify new construction are higher than doctors are willing to pay. Christus recently built a new medical office building nearby, but it remains completely unoccupied. Christus officials reported that lease rates of $1.85 per square foot per month are required for new construction. In older, lesser quality buildings that are fully occupied, doctors are paying $0.95 to $1.20 per square foot, while some Class A medical buildings are in the area with lease rates of $1.15 to $1.60 per square foot. Professionals familiar with the medical office market in the area stated that some doctors may consider building their own small buildings to obtain newer space rather than lease in a new multitenant building. However, due to increases in construction costs, most doctors will find the financial feasibility of even smaller buildings difficult. Based on these findings, CDS I Spillette projects that no new medical - related buildings of significant value will be constructed in the proposed TIF. Small new buildings or conversions of small commercial or residential buildings are possible but generally unlikely; no new construction is projected for the TIF in this regard. CDS I Spillette 30 -408- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas HOTEL MARKET Downtown and Citywide Existing / Planned / Proposed Inventory The State of Texas Comptroller's office shows that the City of Corpus Christi had 104 properties of at least 10 rooms paying hotel occupancy tax as of March 2008. These properties contained a total of 8,302 rooms. Another 105 properties of less than ten rooms paid tax on 165 rooms, for a total taxpaying roomstock in the city of 8,467 rooms. This represents an increase from the March 2002 stock of 7,345 rooms. Most properties that have been added to the market in recent years have been limited- service hotels. These include the Red Roof Inn near IH37 at Nueces Bay, the Comfort Suites on S.P.I.D. on Padre Island, the Courtyard by Marriott Corpus Christi on Flynn Parkway near S.P.I.D., and Hampton Inn on IH37 at Navigation. The three largest hotels in Corpus Christi are within the proposed TIF — the Omni Bayfront, Holiday Inn Emerald Beach, and Omni Marina Tower. As the inventory of hotel properties in the proposed TIF shows in the table to the right, most hotel properties Downtown are fairly aged. Apart from the Omni hotels that were the only properties built in the 1980s and the new V Boutique Hotel, all properties date to earlier than 1975. Downtown has a total hotel room stock of 1,829 rooms. The Bayfront Plaza especially needs renovation, an opinion with which its management agrees. Table 16 — Hotels in Proposed TIF Hotel Name Bayfront Inn Bayfront Plaza Hotel Etono Lodge Holiday Inn Emerald Beach Best Western Marina Grand Omni Bayfront Tower Omni Marina Tower Super 8 Motel The V Boutique Hotel Total Downtown Total Corpus Christi Year Opened Rooms 1964 1973 1950 1966 1970 1985 1985 1961 2007 120 199 30 368 174 475 346 99 8 1,829 8,467 Source: State of Texas Comptroller and Smith Travel Research Omni Bayfront Tower and civic art Best Western Marina Grand CDS I Spillette -409- 31 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Market Conditions - Citywide and Downtown Tourism in Corpus Christi Corpus Christi receives approximately 7 million visitors per year. According to research by the Office of the Governor, over three quarters of "person -days" (one visitor spending one day in the area) to the metropolitan area comes from within Texas. Together visitors from the San Antonio and Austin areas accounted for 42 percent of total person -days in the region. The Convention and Visitors Bureau (CVB) reports that marketing of Corpus Christi in the Houston region began just last year. Leisure travelers are estimated to constitute 73 percent of person -days in the Corpus Christi region. Apart from visiting family and friends, major attractions for leisure travelers include the U.S.S. Lexington and Texas State Aquarium. Fishing, beaches, and nature tourism also have a major role in visitor activities. The CVB has is trying to expand its efforts regarding nature tourism, and touts that the San Diego Audubon Society has names Corpus Christi the "birdiest city in America" for the sixth year in a row. Business travel makes up the balance of travel demand. Some of this is related to group meetings and conventions. The CVB states that the Corpus Christi Convention Center hosts 24 to 30 multi -hotel conventions each year. An estimated 85 percent of these meetings are Texas groups, as opposed to national or regional U.S. groups. The manager of a major Downtown hotel property has found that attendees from these groups tend to be middle class and not extravagant spenders. Multiple persons contacted by CDS I Spillette stated that the meeting room capacity at the Convention Center needs to be expanded. One commented that the facility has become too overpriced to attract small business vendor expositions. One hotel manager also noted that major civic projects such as Whataburger Field and the arena do not generate significant roomnight demand. Hotel Revenue Trends The trends in revenue generated by hotel roomnight sales is a general indicator of hotel industry health. Table 17 below provides historical revenues for Downtown hotels in both nominal and inflation- adjusted dollars. In nominal terms, most properties have experienced a net gradual rise in room revenues since 2002, with the exception of the Bayfront Plaza Hotel, which has declined considerably since its peak in 2003. The Omnis and the Best Western had the largest nominal increases. However, when accounting for inflation, more properties actually lost revenue during the period. The Bay Front Inn and Holiday Inn both experienced declining revenue in real dollar terms. The Omni Bayfront Tower had essentially flat revenue. The total room revenue for all Downtown properties actually declined slightly during this period, indicating stagnant hotel room demand. Corpus Christi as a whole showed modest real dollar growth, showing that overall hotel market health is improving weakly at best. CDS ( Spillette 32 -410- Market and Economic Feasibility Study - Tax Increment District #3 Corpus Christi, Texas Table 17 - Hotel Room Revenue Trends IN THOUSANDS OF NOMINAL DOLLARS Hotel Name Bayfront Inn - 2002 - - $852 2003 $769 Total Roon 2004 - $772 Receipts 2005 - $815 2006 $888 2007 $844 Change 2002 2007 5(8) Bayfront Plaza Hotel 2,791 2 958 - 2,590 : 2,491 2,550 1,805 `' NA Econo Lodge - - NA NA 49 101 288 - 334 (986) Holiday Inn Emerald Beach 6,646 6,808 6,857 6,862 7,407 7,060 NA 414 Best Western Marina Grand 1,820 2 073 1 614 2,143 2,784 2,673 11,770 Omni Bayfront Tower 10,979 10 514 10,724 - 11,394 11,902 12,793 - 853 1,814 Omni Marina Tower - 5,776 .5,922 - 5,704 6,613 7,777 7,187 1 412 Super 8 Motel 916 - 775 - 789 714 1,025 894 (22) The V Boutique Hotel NA NA -- NA - NA NA - 115 214 All other Downtown 303 -' 290 ' " 226 201 - - 195 159 NA - (144) $ 3,782 Total Downtown $ 30,082 $ 30,080 $ 29,324 $ 31,334 $ 34,817 $33,865 Total Corpus Christi - . " - $90,519 $89,568 $93,016 $98,488 - $108,169 $109,878 $19,359 Hotel Name IN THOUSANDS OF INFLATION- ADJUSTED TO 2007 DOLLARS Total Room Receipts 2002 2003 2004 2005 2006 2007 IChange 2002- Bayfront Inn ". `:$982 -$866 $848 $866 $913 $844 $(138) - (1,412) NA Bayfront Plaza'Hotel 3,217 3,333 2,842 2,645 - 2,623 °',1,805 - 334 Econo Lodge ; � `' NA ` NA 54 - 107 ` 296 HolidayInnEmeraldBeach ,. "'7,660 7,671 7,526 7,285 7,618 -7,060 (600) Best Western Marina Grand '- ' 2,097 2,336 - '1,772 2,275 `- - 2,864 ` -- 2,673 576 Omni Bayfront Tower 12,654 11,847 11,770 12,096 12,241 - 12,793 "- 139 Omni Marina Tower - -- 6,657 6,673 6,260 7,020 7,998 7,187 -- 531 Super 8 Motel 1,056 -' 873 - 866 - 758 1,055 -- 894 (162) ` - NA The V Boutique Hotel - NA NA NA - NA - '- NA 115 All other Downtown - -- 349 '326 248 214 201 159 (190) $ (807) $5,551 Total Downtown - $ 34,671 $ 33,896 $ 32,186. $ 33,266 $ 35,809 $ 33,865 $109,878 Total Corpus Christi - $104,327 $100,930 $102,097 $104,560 $111,250 Snurrp• [into nd Ta,.�e nu.,..._o a._._.�_. _, -- Roomnights Sold Data from the Office of the Governor, shown in the following Table 18, indicate that while hotel revenues may be increasing slowly in Corpus Christi, total hotel room demand is essentially flat over the last five years. However, the metropolitan area, which includes destinations such as Rockport / Fulton, has experienced some growth. CDS I Spillette -411- 33 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Table 18 — Corpus Christi Roomnights Sold Area Corpus Christi city Corpus Christi MSA Roomnights Sold (thousands) 2002 2003 2004 2005 2006 2007 1,304.5 1,903.5 1,272.4 1,892.5 1,288.5 1,887.3 1,302.6 1,941.6 1,330.2 2,042.4 1,301.7 2,021.2 Change 2002 -2007 (2.8) 117.7 Source: State of Texas Office of the Governor Occupancies, Market Mix, and Rates According to data from PKF Consulting, Corpus Christi as a whole has experienced occupancies fluctuating between 64 and 68 percent, except for a drop to less than 62 percent in 2007, as noted in Table 19 below. An occupancy rate of 65 percent is considered a typical "break even" rate for most types of hotels. While occupancies have varied, average daily rates have consistently risen since 2002, reaching $78.00 by 2007, possibly a reflection of mid- market limited- service properties that have been added in recent years, as well as increased operating costs. Revenue per Available Room (RevPAR), essentially the product of the two other measures, climbed to over $50.00 by 2006 but dropped to approximately $48.00 in 2007 due to lower occupancies. Table 19— Corpus Christi Hotel Performance Market Indicator Occupancy' • Avg. Daily Rate RevPAR ' 2002 2003 2004 2005 2006 2007 64.5% 62.06 $ 62.37 67.7% $ 66.40 $ 44.97 67.8% $'70.37 $ 47.70 66.2% $ 76.62 $ 50.73 61.8 %' $.x78.18 $ 48.33 Source: PKF Consulting The PKF statistics are higher than what various persons contacted by CDS Spillette estimated. Their estimates are a citywide occupancy of 55 to 60 percent and a Downtown occupancy of closer to 65 percent. Several persons felt that Corpus Christi's hotel occupancy is largely unaffected by the ups and downs of the national tourism economy. The management of the Omni Bayfront estimates that the hotel's market mix is 50 / 50 business / leisure travelers by revenue, but 60 / 40 by roomnights. The reason is that a large share of business travelers are using government hotel rates, currently $82 per night, which is well below the rack rate offered to other customers. The small V Boutique Hotel, dominated by corporate customers such as law firms from Houston with regular business in Corpus Christi, is achieving occupancies in excess of 70 percent during weeknights. The Bayfront Plaza has experienced a significant change in market mix as its physical quality has declined. Formerly a primarily business - oriented property (estimate 85 percent of roomnights) with a large roster of regular and returning corporate users, many affiliated with the refineries and Port of Corpus Christi, leisure travelers and incidental business visitors make up more of its guests. Occupancy at the property has dropped to 40 percent or less. The property is up for sale. CDS I Spillette 34 —412— Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Although there are no true luxury properties in the Downtown hotel market, hotel quality and rates do vary widely. Table 20 provides a summary of current quoted rack rates. It is important to note that rack rates rarely represent the actual rates paid by most guests; larger properties in particular will offer corporate and government rates, group rates, and weekend packages. The Omnis and the V Boutique are the top of the market in Downtown, followed by the Holiday Inn, Best Western, Bayfront Plaza, and Bayfront Inn which serve the middle of the market. The other two properties are classified in the economy or budget segment. There are currently no major limited- service chains in Downtown. Overall, Downtown is represented by properties that are generally priced above average for the region. Table 20— Hotels in Proposed TIF — Rack Rates Hotel Name Bayfront Inn Bayfront Plaza Hotel Econo Lodge Holiday Inn Emerald Beach Best Western Marina Grand Omni Bayfront Tower Omni Marina Tower Super 8 Motel The V Boutique Hotel Quoted Rack Rates Weekday I Weekend $60 -$110 $59 -$119 $70 $159 - $189 $119 $199 $199 $74 -$84 $1S9 -$299 $60 - $110 $59 -$119 $90' $159 -$189 $139 $199 $199 $84 -$94 $139 -$249 Source: CDS I Spillette Outlook and Projections — Downtown Downtown, and Corpus Christi generally, is characterized by relatively stagnant or slow - growth tourism and hotel demand. Many persons contacted by CDS I Spillette expressed frustration that various projects which could have boosted tourism in Downtown had failed to gain the backing of the City. Several repeated that Downtown is significantly lacking in activity, especially quality restaurants and shopping, to attract visitors. Direct air service is unavailable from outside Texas; the current fuel price - driven economic crisis currently affecting the airlines may exacerbate this obstacle. Also, in addition to occupancy rates near break -even, high asking prices for land and the level of rate discounting have retarded new hotel development. Still, opportunities for increased tourism and hotel demand Downtown are on the horizon. For leisure travelers, Corpus Christi is the closest coastal destination for the rapidly growing San Antonio region, with Austin also relatively accessible. Increased traffic from the Houston region is likely as the awareness of Coastal Bend attractions grows. While the primary source of business demand, companies doing business with Downtown office tenants and government may be stagnant, the growth of the Port- related and petrochemical industries may be able to substitute demand to some extent. Furthermore, major transformative projects Downtown could have a primary or secondary effect of boosting tourism demand. Proposals for a waterpark near the Omnis could directly increase visitors to Downtown. A potential buyer would have performed a major leisure- oriented redevelopment of the Bayfront Plaza and Bayfront Inn properties, but the deal fell through because of pricing issues on the Bayfront Inn site. A recent proposal by Landry's to build a waterfront amusement area similar to the Kemah Boardwalk along the Bayfront was unable to withstand political opposition. Still, this indicates that "big idea" developers are envisioning projects in Downtown Corpus Christi. The urban layout of the Bayfront also provides compelling opportunities not found elsewhere along the western Gulf Coast. The success of the Kemah Boardwalk and the Strand Historic District in Galveston CDS I Spillette -413- 35 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas illustrate the leisure attraction of waterfront environments and walkable urban districts respectively. Corpus Christi is uniquely positioned to combine both of those qualities. Changes to Shoreline Boulevard and Chaparral Street could enhance the urban environment, creating the setting for new residential and retail development; the spinoff effect of such an evolution would be increased tourism demand by creating a more compelling urban waterfront destination. CDS I Spillette projects that roomnight demand will emerge in the near to middle term from its current stagnant state, driven primarily by the growth of source markets in San Antonio, Austin, and Houston, plus the slow growth occurring in the local economy. Room rates for reasonably maintained properties will continue rise, partly because of continued operating cost increases but also in response to increased demand. To the extent that it is physically feasible, increased demand should spur renovation of some existing properties to satisfy the desire of visitors for more updated rooms. Existing hotel capacity will likely satisfy increased demand in the near to middle term, particularly if renovations occur at better properties. In six to eight years, a new first - class, full service hotel property could be considered for development, to come on line one or two years thereafter. Such a property would likely have 200 to 300 rooms and a full restaurant. In the longer term, eight to ten years away, a limited - service property serving the middle to upper middle market of 100 to 150 rooms would likely be supportable Downtown. Successful revitalization through residential and retail / entertainment development (uses to be discussed in following sections) in the near to middle term could accelerate the generation of sufficient support for both hotel renovation and new hotel development. It should be noted that increasing construction costs could raise the financial hurdles that must be surmounted to make new development feasible; most importantly, investors would have to be confident in higher supportable room rates for a given level of occupancy. CDS I Spillette 36 -414- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas RESIDENTIAL MARKET Downtown and citywide existing / planned / proposed inventory Table 21— Housing Characteristics, 2007 The tables on the right show the characteristics of the housing stock in 2007 as estimated by PCensus using Claritas data. In the downtown TIF district, there are an estimated 966 units. Most of the units in the district were built prior to 1980 and very few have been built in recent years (post 1995). The housing stock in the City overall is substantially newer. Since previous demographic data for the district identified 804 house- holds, a 16.9% vacancy rate can be calculated. That vacancy rate in the district is substantially higher than that of the City of Corpus Christi. Most of the housing units in the TIF district are in multifamily unit structures. Of the total 704 multi- family units, approximately 42 are in high -rise condominium projects (not including Marina del Sol which is just outside TIF boundaries). The emphasis on multifamily housing is in direct contrast to the City as a whole, for which single family detached units have an approximately two - thirds share of the total. Still, there are some single family houses in the proposed TIF located primarily at the southern end of the zone. YEAR STRUCTURE BUILT Total Number of Units Proposed TIE Number I % 966 ® Corpus Christi Number I 113,784 1995 to 2007 % - 15 1.6% 18,713 16.4% 1980 to 1994 _ 235 24.3% 26,187 23.0% 1960 to 1979 -: 164 160 16.6% 35,826 ` 31.5% -;. 1940 to 1959 - 100.0% 238 24.6% 28,766 25.3% ".:Median Year Built `- 1953 -" 1974 TENURE STATUS This data while captured for the Corpus Christi City level for 2000 data by PCensus, is not able to be captured for the TIED rt3 polygon level for 2000 data. The number reflected is the number of housing units minus number of households using 2007 P Census Estimates for both. UNITS IN STRUCTURE Proposed TIF Proposed TIE Number I % Corpus Christi Number I % Owner- occupied : -105 - `10.8% `62,220 '54.7% Renter- occupied '.699 ' 72.2% 41,003 36.0% Vacant* -: 164 16.9% - 10,561 9.3% Total - `.. 968 100.0% 113,784 .100.0% This data while captured for the Corpus Christi City level for 2000 data by PCensus, is not able to be captured for the TIED rt3 polygon level for 2000 data. The number reflected is the number of housing units minus number of households using 2007 P Census Estimates for both. UNITS IN STRUCTURE Proposed TIF Corpus Christi Number Total Number of Units - 966 % Number % 113,784 SF Townhouse - 40 4.1% 3,673 3.2% SF Detached 137 14.2% 74,367 65.4% Duplex ` 83 8.6% 2,738 2.4% Multi - Family (3+ Units) 704 73.0% 29,164 25.6% Mobile Home /Trailer 2 0.2% 3,842 3.4% Source: PCensus for Mapinfo, Tetrad Computer Applications CDS Spillette -415- 37 Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Existing Apartment Properties in TIF CDS Spillette is aware of four significant multifamily rental properties in the proposed TIF, containing a total of 214 units. Detailed data on each properties is provided in the Table below. Table 22— Existing Multi - Family Rental Properties in Proposed TIF Location No. of Units % Rent / Month Name Unit Type Address Zip Total Occupied Occ. Low High Limerick Apartments La Retama Princess Apartments Sea Gulf Villa 1BR/1BA 1BR/1BA, 2BR /2BA 1BR /1BA,.' 2BR /1BA, EfBciency' IBR/1BA, Efficiency 201 N. Chaparral Schatzell 1001 N. Water St. 416 N. Chaparral l. 78401 29 78401 16 78401 58 78401 111 534 504 97% $515 $550 Price Per SF Yr Low High Built $L03 $1.10 1967 88% $610 $1,000 $0.98 $1.18 1930 100% $450 $650 $0.76 $1.20 1920 100% $540 $555 $0.86 $1.28 1930' s 94% Sources: Corpus Christi Downtown Management District and CDS I Spillette There are no recently built apartment properties that are currently occupied in the proposed TIF. The most recent, the Limerick Apartments, were built in 1967. The others were built prior to World War II. There are also multifamily condominium properties in the proposed TIF. The following Table 23 lists the most significant properties. Marina del Sol, because it is located less than two blocks from the proposed TIF, is also included for market comparison purposes. The Retama Vista Apartments CDS Spillette -416- 38 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Table 23— Existing Multi Family Condominium Properties in Proposed TIF Name Marina Del Sol Unit Type '2BR /2BA, ' 38R /2BA Location Address Ocean Dr. cea Zip 78404 No. of Total 123 Units Occ.# 123 Occ. 100% Price Low $140,000 Range High $189,000 Price Low $131 Per SF High $139 Yr Built 1981 - Cliff House 1BR /1BA, iBR /1.SBA, 2BR /1BA, 2BR/1BA 7155. Upper Broadway 78401 _ 64 na na $99,000 $149,000 $111 $146 1965 Executive House Ho - _,. 1BR/2BA, 2BR /2BA, - 3BR/2BA,4 BR/2BA ,. 823 Water St. 78401 -. 31 .... 31 100% - .$85,000 - $110,000 $50 $64 1962 ® 165 na na ® ®® ources: CD5 I Splllette Although these condominium properties are newer than most of the apartment properties, they are still not of recent enough construction to be directly comparable to new construction or adaptive reuse. The residential stock in Downtown is about to substantially change, however. Four separate projects are under construction that will add an estimated 336 units to the proposed TIF. One of these projects, Bay Vista, is planning a second phase of another 181 units. Three of the projects are rental apartments and one, Atlantic Lofts, is offering for -sale condominiums. The Bay Vista is the only entirely new property; the other three are residential conversions of buildings that had other commercial uses. The Nueces Building The Lichtenstein Building, soon to be the Metropolis Lofts CDS Spillette —417— 39 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Table 24 - Under Construction and Planned Multi - Family Residential Rental Name Location Zip Units Bay Vista I Bay Vista II Lichtenstein Building (Metropolis Lofts) Nueces Building Furman at S. Water St. 78427 401 Chaparral Chaparral at Peoples 78401 78401 169 181 Price Range High Low I Price / sq.ft. Low High Comments $899 $1,305 $1.23 $1.15 $1.23 $1.15 66 Nearly Complete Planned Remediation and demolition underway Completion- Feb, 2009 Atlantic Lofts 1BR/1.5BA, 2BR /2BA, 2BR/2.5BA 78401 Condominium $195,000 $389,000 $150 $185 Completion of Renovation, Some Leasing Sources: City of Corpus Christi and CDS I Spillette The Atlantic Lofts condominiums under construction The new Bay Vista Apartments (left) and existing Executive House Condominiums (right) CDS I Spillette -418- 40 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas CDS I Spillette was able to speak with the developers of three of the new projects. Key aspects of these projects are as follows: Bay Vista Apartments Sage Properties, Inc. is developing the Bay Vista Apartments. Completion of first phase of the project is imminent. This phase will have 169 units averaging 911 square feet. All units will have washers and dryers and two parking spaces. The complex will have a large "resort- style" swimming pool on a deck with a view to the Bay. Demolition of older improvements on the site for the project's second phase has begun. The second phase will have 181 units. Metropolis Lofts The Lichtenstein Building, a former department store on Chaparral at Lawrence Street, is being converted to a loft apartment property with ground -floor retail. Developer J. Golden Properties is modeling the project after the AMLI Downtown project in Austin. The building will contain 60 to 65 units. Currently interior demolition is mostly complete, with a projected August start for buildout. The units must be ready for occupancy by August 2009 according to the terms of a federal grant used to help fund the project. Atlantic Lofts Developer Joe Adame is converting the former Atlantic - Mobile Oil building at Upper Broadway and Winnebago, adjacent to IH37. The seven story property now contains 36 units. Adame expects a certificate of occupancy by July 2008. The units have views of the Bay, Downtown, and the Port. Market Conditions — Downtown and Citywide While the supply of Downtown properties with which to assess residential market conditions in Downtown is admittedly thin, it appears that occupancies are currently strong. The apartment properties are full or nearly full. Rents per square foot are relatively strong for properties of the age of building typical in Downtown, ranging roughly from $0.80 to $1.10 per square foot. These figures compare to data for Corpus Christi overall which shows average rental rates of $0.85 per square foot (source: Apartment Listing Network, ALNOnline), showing that Downtown rents are slightly above market despite the age of the properties. Because units in Downtown properties tend to be smaller than average for Corpus Christi, actual apartment unit rents are generally relatively moderate, with the majority of units priced from $500 to $600 per month. Condominium unit prices are relatively affordable and under $150,000, particularly at Executive House and Cliff House, although the sale prices presented in Table 23 do not account for condominium association monthly fees. The new residential projects under construction give some indication as to how new properties may fare going forward. New rental projects appear to be charging lease rates that are equivalent to or exceed the current top of the market. Bay Vista began preleasing in May 2008 with rents $1.20 to $1.30 per square foot and unit rents well above the range of existing units in Downtown apartment properties. As of this report 24 of 169 units have been preleased. The Metropolis Lofts in the former Lichtenstein building have yet to start preleasing, but rents are anticipated to be slightly lower than those at Bay Vista; this may be partly due to the use of the federal grant to assist the project. Both Metropolis and Bay Vista are targeting young childless professionals working in Downtown or the medical district at the south end of the proposed zone. CDS I Spillette 41 -419- Market and Economic Feasibility Study =Tax Increment District #3 Corpus Christi, Texas At the Atlantic Lofts, ten units of 36 have been pre -sold. Prices are well above average Corpus Christi home prices, ranging roughly from $200,000 to nearly $400,000. Adame is aiming to attract older childless buyers ( "empty nesters "). He emphasized that most buyers will not likely be native or long- time residents of Corpus Christi because they are not culturally predisposed to condominium living. He believes the greatest attraction will be for buyers from outside the Corpus Christi region or for those who have lived in Corpus Christi for a shorter period of time. Outlook and projections — Downtown The demographic and economic projections for Corpus Christi in Section 2 indicate that the City will continue to experience a slow to moderate rate of population growth over the coming years, with over 100,000 new residents in the region by 2035. Furthermore, smaller households, particularly single - person households and two - person family households, will slowly increase their share of total households. These trends bode well for Downtown housing demand, as it is a market dominated by small households. Numerous persons contacted by CDS I Spillette believe that housing is the best opportunity for new development in Downtown over the next several years CDS I Spillette concurs, for the following reasons: • The aforementioned regional population and small - household growth in Corpus Christi • Increasing enrollment at Texas A &M — Corpus Christi • An urban Bay front setting unique on the western Gulf Coast • Many potentially developable sites • An existing stable market, at least at affordable rents / prices • Relative affordability compared to other coastal cities in the United States and downtown locations in Texas, potentially attracting retirees, second home purchasers, and those relocating for lifestyle reasons • Continued growth of San Antonio, Austin and other Texas metropolitan markets which could be a source of new residents in Downtown Corpus Christi A potentially significant factor in housing demand in the proposed TIF is the extent to which public improvements are accomplished to provide needed infrastructure capacity and create improved public spaces which serve to increase housing demand. CDS I Spillette is not qualified to estimate how much potential new development would occur due to the removal of infrastructure constraints such as sanitary sewer capacity. However, the realignment of Shoreline Boulevard and concurrent creation of improved parkland along the Bayfront could substantially increase the visibility and attractiveness of the Bayfront as a residential location, as quality parks have proven to be effective settings for new residential development in many cities in Texas and elsewhere. Another potential accelerator of residential development would be the expansion and improvement of the existing retail and entertainment offerings in Downtown. For some types of retail, this leads to a "chicken or egg" question. However, the continued establishment of unique restaurant and entertainment businesses in the core of the lower part of Downtown will have the effect of raising awareness of the area to potential residents. The improvements to Chaparral Street could therefore have a secondary effect of speeding up demand for living Downtown. This effect can build upon itself, CDS Spillette -420- 42 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas because as retail improves, more people are willing to move to the area, thereby creating demand for more and different retail, etc. Assessing potential residential absorption rates at the present time is difficult because of the lack of track record for recently built residential products — more specifically, there has not been any residential construction Downtown until the present time. It will take time to absorb the new units, both rental and for sale, that are entering the market. The second phase of Bay Vista will further add to the supply of new units. For sale condominium projects, particular those in excess of four or five stories, will likely be more difficult to accomplish because rising construction costs push up the sale prices required for financial feasibility into ranges with a smaller pool of potential buyers. Therefore, new residential development is likely to be weighted toward urban multifamily rental projects and possibly single family for sale townhomes. Townhomes would be most likely in the far northern and southern portions of the proposed TIE However, as they are a totally untested product in the context of Downtown, townhome absorption will not be projected in this study. CDS J Spillette projects that, beyond the projects already under construction or planned, a supportable absorption level for various residential products in the TIF would be as follows: • Multifamily rental — one 150 -unit complex coming on line every five years starting in 2012. This could accelerate to every three years if the walkable urban retail district becomes a sufficiently attractive destination. By today's standards, without public subsidy, rents are likely to be in the $1.25 to $1.50 range, depending on unit finishes, amenities, and location (Bayfront and park - fronting sites will be able to charge a rent premium, as would sites in the heart of an active urban mixed -use district). • Multifamily for sale — initially, condominiums will likely be somewhat slower to develop than apartments. If The Atlantic Lofts are successful, however, this will encourage other projects to happen. CDS l Spillette projects a 50 -unit condominium project entering the market in 2013, with average unit prices of $300,000. Such projects could be expected approximately every five years in the proposed TIF. CDS I Spillette 43 -421- Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas RETAIL MARKET Retail Sales Trends CDS ( Spillette examined historical retail sales in the ZIP codes covering the proposed TIF, 78401 and 78404 (see Exhibit at right) as well as the City overall. Data for the 4th quarter of 2007 was not yet available from the State Comptroller's office. The results are graphically depicted in Exhibit 16. Gross retail sales for the typical categories of business establishments (using NAICS codes) for the City overall and for ZIP code 78404 were flat for several years before increasing considerably in 2006. In contrast, sales in ZIP code 78401, which covers the heart of Downtown, rose considerably during this time. Exhibit 15 — Downtown Corpus Christi Zip Codes Exhibit 16 — Retail Sales Comparison —TIF vs. City Downtown Zip Codes Millions 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 ;::11 11M11 !'■ • a ■ n 1 ■ ■,■.■ 1 ■ 1 •1 1.11 2002 2003 2004 2005 2006 1Q -3Q 2007 • Corpus Christi City • Zip 78401 • Zip 78404 Source: Texas State Comptroller of Public Accounts CDS I Spillette —422— Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Other illustrations of Downtown's retail sales growth are in Tables 25 and 26, which give total gross retail sales for the two ZIP codes combined and compare this total to the City's total. The growth rate of total gross retail sales in the Downtown ZIPs was twice that of the City overall from 2002 to 2006. Information for the ZIP codes was limited in several sub - categories of retail establishments because of the State Comptroller's disclosure policies (a certain number of outlets must be present within a geographic area to release sales data to the public). However, sufficient numbers of restaurants, bars, and nightclubs are present in these ZIP codes for the State to release a full set of data, presented in Table 26. In 2006, sales at these types of establishments represented about 30 percent of total sales in the Downtown ZIP codes, compared to about 4 percent of total sales for the City as a whole. This data thus emphasizes that restaurants and bars are the primary driver of retail activity in Downtown. Fortunately, this category has been experiencing consistently increased sales in Downtown with a growth rate of 4.7 percent annually. Interestingly, other categories of retail establishments have actually had a faster average rate of growth than restaurants and bars during this period at 5.4 percent, although sales decreased from 2005 to 2006 and were less consistent in trend. Table 25 — Gross Retail Sales in Downtown Zips and City Millions of Constant 2007 Dollars * CAGR = Compound Annual Growth Rate 2002 to 2006 Source: Texas State Comptroller of Public Accounts Table 26— Retail Sales in Downtown Zips Food /Drink and Other Categories Millions of Constant 2007 Dollars 2002 2003 2004:': =:_ 2005 " 2006 1Q- 3Q2007 CAGR* Food Services and Drinking Places $57.6 ' $61.8 $65.8 $69.3 $52.1° 4.7 % All other $1321 $161.1_..:.. $161.4'.: $167.8: $163.1. $98.7 5.4% * CAGR = Compound Annual Growth Rate 2002 to 2006 Source: Texas State Comptroller of Public Accounts Downtown existing / planned / proposed inventory Professional real estate brokers informed CDS I Spillette that no new retail space has been constructed Downtown in many years. Unfortunately, an accurate inventory of existing retail space was not available at the time of research for this report. However, the Downtown Management District was able to provide a tally of retail businesses within its boundaries (a subset of the overall proposed TIF comprising the central part of the district): CDS I Spillette —423— 45 Downtown Zips Corpus Christi City 2002 $189.7 -- $3,846.7 2003 - $221.8 $3,906.1 2004. $223.1 - $3,924.4 2005 $233.6 $3,869.9 2006 - $232.4 $4,262.9 1Q- 3Q2007 = $150.8 $2,833.9 CAGR *. - 5.2% '- 2.6% * CAGR = Compound Annual Growth Rate 2002 to 2006 Source: Texas State Comptroller of Public Accounts Table 26— Retail Sales in Downtown Zips Food /Drink and Other Categories Millions of Constant 2007 Dollars 2002 2003 2004:': =:_ 2005 " 2006 1Q- 3Q2007 CAGR* Food Services and Drinking Places $57.6 ' $61.8 $65.8 $69.3 $52.1° 4.7 % All other $1321 $161.1_..:.. $161.4'.: $167.8: $163.1. $98.7 5.4% * CAGR = Compound Annual Growth Rate 2002 to 2006 Source: Texas State Comptroller of Public Accounts Downtown existing / planned / proposed inventory Professional real estate brokers informed CDS I Spillette that no new retail space has been constructed Downtown in many years. Unfortunately, an accurate inventory of existing retail space was not available at the time of research for this report. However, the Downtown Management District was able to provide a tally of retail businesses within its boundaries (a subset of the overall proposed TIF comprising the central part of the district): CDS I Spillette —423— 45 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Category Number Arts / cultural (galleries, dance studios, etc.) 8 Auto repair 2 Clothing 3 Convenience store 2 Flowers 2 Furnishings (home and office) 4 Jewelry 2 Nightclubs 16 Rental car 1 Restaurants: 30 Upscale 4 Mid - market 5 Casual sit -down 5 Convenience / fast food 16 Specialty retail (gifts etc.) 3 As can be gathered from this list, significant general merchandise and soft / comparison goods retail establishments are largely absent from Downtown. The former department store Lichtenstein's is being turned into the Metropolis Lofts, albeit with some ground floor retail space. Apart from restaurants, bars, and entertainment venues, other users of retail space tend to be niche specialty goods retailers that operate somewhat as a destination on their own. The retail "heart" of Downtown lies in the Chaparral corridor from Taylor to Williams streets. Mesquite and Water Streets also feature some retail space. The retail space in this area is generally of the traditional urban variety, opening directly to the sidewalk. The most significant single retail development in Downtown is the Water Street complex, nearly a full block bounded by Chaparral, Lawrence, Water, and Williams streets. The Water Street Seafood Restaurant and Oyster Bar are within the complex, along with a live music club, a coffee shop, and the Texas Surf Museum and retail shop. According to Brad Lomax, the owner and developer, total indoor square footage of the anchor tenants in the complex is 33,200. Five other retail shop spaces house an antiques store, jewelry shop, women's beachwear store, gift and novelty store, and a printing company. The Metropolis Lofts project will return 35,000 square feet of retail space to the market along Chaparral and Lawrence streets. This project is scheduled for occupancy in August 2009. Also, the Nueces Lofts building is offering 5,200 square feet of dividable retail space. Nightclub use on Mesquite CDS ( Spillette 46 -424- Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Market Conditions — Downtown Accurate vacancy / occupancy data was not available for Downtown retail space. However, a windshield / walking survey of the core retail area revealed that a majority of retail space was occupied, with occasional vacancies. One commercial broker familiar with Downtown stated that all "restaurant- ready" (available plumbing and venting connections) space in Downtown is leased up. The Metropolis Lofts retail space is already pre - leasing. A coffee house, pizza parlor, and small grocery or convenience store have signed on as tenants. Two adjacent buildings with ground floor retail space have also been purchased by the developer. One, a former brewpub, has been leased to a restaurant. The other currently has an urban - oriented boutique furniture store. Metropolis' asking lease rates for these spaces ranges from $1.50 to $2.00 per square foot per month. A commercial broker reported to CDS Spillette that standard strip center retail space south of the Downtown area leases at $0.50 to $1.50 per month, with drive - through pad sites at $2.00 per square foot. The smaller retail shop spaces in the Water Street complex lease for $1.00 per square foot plus a $200 per month maintenance fee. Thus, Metropolis is successfully attracting interest despite being above market for class of space. Visitors to Corpus Christi are an important source of business for Downtown retail, which is not surprising given the heavily restaurant and entertainment - oriented nature of the area. Mr. Lomax reports that visitors make up one half of the patrons in the Water Street complex. To capitalize on the demand from visitors, a new club is scheduled to open in a currently vacant building which used to house the Roxy nightclub on Mesquite. The non - entertainment retail uses also benefit from tourists. In the ground floor of the Bayfront Plaza Hotel, a coffee shop and Latin American imports store receives an estimated 60 percent of its business from visitors, especially San Antonio, Austin, and Houston. Multiple persons contacted by CDS ) Spillette stated that retail expansion in Downtown, particularly restaurants, would have to continue being heavily driven by Corpus Christi visitor demand, plus additional demand from residential development. It was a common sentiment that even affluent longtime residents of the City would not be willing to patronize more upscale dining establishments Downtown. Chaparral Street retail, dining, and entertainment The focus on dining and entertainment, which are known for intense peak periods of customer usage, has brought the issue of parking and traffic to the forefront, particularly on weekend evenings. Parking lots in the vicinity of the Water Street complex, as well as street parking, is often completely occupied during these times. Additional evening- oriented dining and entertainment development may run up against parking constraints. To divert traffic congestion during special events on weekend evenings (and upon request only), the City closes Chaparral Street to automobile traffic in the entertainment area from 10:00 p.m. to 2:00 a.m. The Metropolis Lofts is interested in obtaining City assistance with constructing an adjoining parking structure that would contain one level of public parking to support commercial activity and two levels for apartment dwellers. The experience of CDS I Spillette during midday and afternoon hours indicated that parking issues were minimal during these times of day. CDS Spillette 47 -425-- Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas Outlook and Projections — Downtown For downtowns that are undergoing redevelopment and revitalization, retail activity is always a major focus yet it also usually one of the most difficult to achieve. The street pattern, existing development, non - standard parking configuration, and, frequently, lack of surrounding residential population make typical suburban -style retail formulas non - functional. However, Downtown Corpus Christi is fortunate to have a sustained core of retail activity to start from, even if it is limited in breadth. Additional retail absorption will depend in part on the increased volume of visitors to Downtown and a growing residential base. The population likely to be added by the near -term new residential projects (a total of 517 units — about 850 residents at full occupancy and 1.64 residents per household) will not be enough on their own to support new retail businesses, except possibly a few small convenience uses such as the proposed convenience store in the Metropolis Lofts. Most standard national retail chains are unlikely to find Downtown an attractive location for the near to middle term, because the area does not meet their typical standards for new retail locations. The principal retail opportunities during this period will instead remain dining, nightclubs, and entertainment. The occasional unique "destination" soft goods tenant that does not have "co- tenancy" requirements and seeks atmospheric locations that match culturally with its shoppers or can take advantage of tourist traffic will also likely continue to absorb space. Since restaurants, nightclubs, and entrepreneurial retail stores typically have high failure rates, substantial turnover is likely; newly vacated spaces where failed establishments were located will be able to satisfy some new retail tenant demand. Eventually in the long term, as a more "critical mass" of retail activity slowly develops with additional support from new residential and hotel projects, retail space absorption may accelerate and new retail space development becomes more feasible. Some new space may be part of mixed -use projects such as the Nueces Building and Metropolis Lofts. Other space will come in the form of single -story, single -use developments similar to the Water Street complex. A technical calculation of supportable retail space inventory to be added to Downtown on an annual basis is very difficult if not impossible in such a market that is driven by a combination of tourism, local residential population, daytime workers, and other Corpus Christi residents, all of which have both common and differing retail needs. Based on Downtown research and professional experience, CDS Spillette projects that supportable additional retail absorption will occur in relatively small increments, especially in the near to middle term. The 35,000 square feet to be added with the Metropolis, plus another 5,200 square feet in the Nueces Building, is likely above average, although it is partly addressing what was probably a deficit of new space. A reasonable projection of average annual supportable absorption over the next seven years is 12,000 square feet. At least 50 percent of such space will likely be dining and entertainment uses. The remainder will consist of convenience uses and specialty shops. The existing retail core area will likely be the focus of additional absorption, but small amounts may occur in more outlying areas of the proposed TIF, including the medical district, federal courthouse area, and upper bluff. In the longer term, after the new hotels and residential units described in earlier sections have been completed, supportable retail absorption will likely increase. In addition, as retail activity gathers mass, it will attract the attention of greater range of potential tenants as well as developers. CDS I Spillette projects supportable absorption at that point to increase to an average of 20,000 square feet per year. CDS I Spillette -426- 48 Market and Economic Feasibility Study — Tax Increment District #3 Corpus Christi, Texas Several factors could increase the pace of retail expansion in Downtown. These include: • Improving Chaparral Street by instituting two - directional traffic and improving sidewalks; • Creating destination public spaces along a relocated Shoreline Boulevard; • Adding public parking facilities; and • Adding a destination attraction, such as an amusement park or water park, within walking distance of the core retail area. CDS l Spillane 49 -427- Market and Economic Feasibility Study —Tax Increment District #3 Corpus Christi, Texas CDS I Spillette 1250 Wood Branch Park Drive, Suite 100 Houston, TX 77079 281.582.847 (Phone) 713.465.6975 (Fax) www.cdsmr.com CDS I Spillette —428— 50 31 NO ATTACHMENT FOR THIS ITEM -431- 32 CITY COUNCIL AGENDA MEMORANDUM AGENDA ITEM: December 16, 2008 a. Public hearing and first reading ordinance to consider abandoning and vacating the Avenue "F" public street right -of -way (1.248 acres), from the East Navigation Boulevard public right -of -way to the Breakwater Street public right -of -way. b. Public hearing and first reading ordinance to consider abandoning and vacating a portion of the Texaco Road street right -of -way (0.384 acres), from the East Navigation Boulevard public street right -of -way, north approximately 278 feet to the city limit line. c. Public hearing and first reading ordinance to consider abandoning and vacating a portion of the Sigmor Road public street right -of way (0.388 acres), from East Navigation Boulevard, north approximately 281 feet to the city limit line. d. Public hearing and first reading ordinance to consider abandoning and vacating a portion of the East Navigation Boulevard public street right -of -way (9.367 acres), from the Avenue "F" public street right -of -way, west approximately 5,857 feet to the city limit line. e. Resolution authorizing the City Manager or designee to execute a Right -of -Way Agreement with the Port of Corpus Christi Authority for the purpose of exchanging real estate rights needed by each party through the process of vacating and abandoning, granting, selling or other means, to convey these rights to each other. ISSUE: Port of Corpus Christi Authority (POCCA) is requesting the abandonment and vacation of the dedicated public rights -of -way to upgrade their security capabilities at multiple locations throughout the Port. It is also necessary for the City of Corpus Christi to acquire rights -of -way and easements from the Port of Corpus Christi Authority to complete its Capital Improvement Program. REQUIRED COUNCIL ACTION: City Charter Article X, Paragraph 9, requires Council approval to abandon and vacate any portion of street rights -of -way. City Charter Article X, Paragraph 11, requires a public hearing prior to the abandonment and vacating of any street rights -of -way. IMPLEMENTATION SCHEDULE: Upon approval by Council and issuance of the ordinance, all grants of street closures and dedication of utility easements must be recorded at owner's expense in the real property Map Records of Nueces County, Texas, in which the property is located. Prior to the approval of building permit and construction, an up -to -date survey, abstracted for all public rights -of -way, easements, and items of record, must be submitted to the Deputy Director of Development Services. RECOMMENDATION: Staff recommends approval of the ordinance as presented. Attachments: Exhibit A - Exhibit B Exhibit C Exhibit D Background Information — Ordinance - Site Location Map - Right of Way Agreement -435- Bob Nix, AICP ACM of Development Services AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: Port of Corpus Christi Authority, is requesting the abandonment and vacation of a 1.248 acre tract of land out of the Avenue "F" public street right -of -way (ROW), north of East Navigation Boulevard, a 0.384 acre tract of land out of the Texaco Road ROW, north of East Navigation Boulevard, a 0.388 acre tract of land out of the Sigmor Road ROW, north of East Navigation Boulevard, and a 9.367 acre tract of land out of the East Navigation Boulevard ROW, west of Avenue "F", west to the city limit line. These road sections are within the city limits of Corpus Christi and extend to Nueces County Jurisdiction. The public street rights -of -way to be abandoned and vacated are located in an "1 -3" Heavy Industrial District. The portion of Avenue "F" to be abandoned and vacated is located just north of East Navigation Boulevard, between East Navigation Boulevard and Breakwater Avenue. The portion of Texaco Road to be abandoned and vacated is located just north of East Navigation Boulevard, between East Navigation Blvd. and the city limit line. The portion of Sigmor Road to be abandoned and vacated is located just north of East Navigation Boulevard, between East Navigation Blvd. and the city limit line. The portion of East Navigation Boulevard to be abandoned and vacated is located west of Avenue "F", between Avenue "F" and the city limit line. The said portions of public rights -of -way are being abandoned and vacated, because the Port of Corpus Christi Authority (POCCA) is currently upgrading their security capabilities at multiple locations throughout the Port. As part of those security measures, POCCA proposes to route traffic away from the docks and expand the Port of Corpus Christi's secure area. The abandonment and vacation of the street rights -of -way will be implemented in phases to maintain safe traffic movement. As part of the abandoning and vacating of these public street rights -of -way, the City of Corpus Christi will be acquiring some property from POCCA for a 30 -foot wide sanitary sewer easement for buffer zone purposes in association with the Broadway Wastewater Treatment Plant reconstruction project. The City of Corpus Christi in the future will be proposing the abandonment and vacation of a portion of Resaca Street, from North Tancahua Street to San Rankin Street. The City along with POCCA, are the adjacent property owners to a portion of Resaca Street, from North Tancahua Street to Sam Rankin Street the Resaca Street public right -of -way. Upon the abandonment and vacation of the Resaca Street right -of -way, The City of Corpus Christi with an agreement made with POCCA, will be retaining POCCA's entire portion of the Resaca Street public right -of -way. The City in the future, will also be acquiring a portion of the North Port Avenue public street right -of -way from POCCA, as part of their street widening project of North Port Avenue, from the Interstate 37 public right -of -way, north to Whataburger Field. All public and franchised utilities were contacted regarding this closure request and no objections were received by any of the utility companies. City Water Department has an existing 12" waterline within the Avenue "F" ROW and a 6" waterline within the Texaco Road ROW. City Gas Department has an existing 4" gas line within the Texaco Road ROW, an existing 8" gas line within the East Navigation Boulevard ROW, and an existing 10" gas line within the Avenue "F" ROW. SBC has buried cable within the Texaco Road and East Navigation Boulevard street rights -of -way. AEP, had no objections, but will seek reimbursement by the Permittee if adjustments to their facilities become necessary. City Staff is requiring that the Port of Corpus Christi retain the entire right -of -way width of Avenue "F", Texaco Road, Sigmor Road, and East Navigation Boulevard as utility easements because of the existing utilities located within the four (4) public street rights -of -way. Staff recommends that the Owner pay the net fair market value of $55.302.09 for the abandonment and vacating of the four (4) public street rights -of -way (Ave "F" ($5,933.92), Navigation Blvd. ($45,366.58), Texaco Rd. ($2,093.81), and Sigmor Rd. ($1,907.78)). The City of Corpus Christi and the Port of Corpus Christi Authority will be exchanging real estate property through a Right -of -Way Agreement that will off -set part of the fair market value fee being assessed for the four proposed public street rights -of -way being proposed for closure. The owner has been advised of and concurs with the conditions of the right -of -way abandonment. EXHIBIT A -436- Page 1 of 3 ORDINANCE ABANDONING AND VACATING THE AVENUE "F" PUBLIC STREET RIGHT -OF -WAY (1.248 ACRES), FROM THE EAST NAVIGATION BOULEVARD PUBLIC RIGHT -OF -WAY TO THE BREAKWATER STREET PUBLIC RIGHT -OF -WAY; SUBJECT TO COMPLIANCE WITH THE SPECIFIED CONDITIONS WHEREAS, Port of Corpus Christi Authority (Owner) is requesting the abandonment and vacating of the Avenue "F" public street right -of -way (1.248 acres), from the East Navigation Boulevard public right -of -way to the Breakwater Street public right -of -way to upgrade their security capabilities at multiple locations throughout the Port; and WHEREAS, with proper notice to the public, public hearing was held on Tuesday, December 16, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate said portion of the Avenue "F" public street right -of- way (1.248 acres), subject to compliance with the specified conditions. (Exhibit A) NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the Avenue "F" public street right -of -way (1.248 acres), from the East Navigation Boulevard public right -of -way to the Breakwater Street public right -of -way, as recorded in Volume A, Pages 30 -32 and Volume A, Page 33, of the Map Records of Nueces County, Texas, is abandoned and vacated, subject to the conditions specified in Section 2. below. SECTION 2. The abandonment and vacation of the above public right -of -way is conditioned as follows: 1) The fair market value of the property is $40,772.16. $27,280.98 is deducted from the fair market value as consideration for the retained utility easement in the entire right -of -way width of Avenue "F ". $7,557.26 is also deducted from the fair market value as consideration for a portion of the value of right -of -ways to be acquired by the City from the Owner. Owner pays the remaining fair market value of $5,933.92 for the abandonment and vacation of the 1.248 acres of Avenue "F" public street right -of -way. 2) Owner shall retain the entire right -of -way width of Avenue "F" as a utility easement because of the existing utilities located within the street right -of -way. 3) City will be acquiring some property from Owner for a sanitary sewer easement, for buffer zone purposes. Q: \Shared\Jay Agenda\ 2008\ 12- 16\ORD- abandon- vacateSfrreStat ROW - PortofCC - AvenueF.doc Page 2 of 3 4) Upon the closure of the portion of the Resaca Street public right -of -way, from North Tancahua Street and Sam Rankin Street, the City and Owner, adjacent property owners to that portion of right -of -way, agree that the City will retain the entire Resaca Street right -of -way, between North Tancahua Street and Sam Rankin Street. 5) The City will also be acquiring a portion of the North Port Avenue public street right - of -way from Owner, as part of their street widening project of North Port Avenue, from the Interstate 37 public right -of -way, north to Whataburger Field. 6) Actual closure of the street right -of -way shall be coordinated so as to maintain traffic safety and emergency access. 7) Within 180 days of approval by Council and issuance of the ordinance, all grants of street closures and dedications of utility easements must be recorded at owner's expense in the real property Map Records of Nueces County, Texas, in which the property is located. Prior to Building Permit approval of construction, an up -to -date survey, abstracted for all easements and items of record, must be submitted to the Development Services Engineer. O:\6hared W ay W genda\2008 \12- 16 \ORD- abandon - vacat !94 &&ObROW- PortofCC- AvenueF.doc Page 3 of 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 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: December 8, 2008 By: Yvk'te Agdilar Assistant City Attorney For City Attorney Qic Henry Garrett Mayor O: \ Shared\Jay\ Agenda12008\ 12- 16\ ORD-abandon- vacateStreetPtlbROW- POrtofCC- AvenueF.doc Page 1 of 3 ORDINANCE ABANDONING AND VACATING A PORTION OF THE TEXACO ROAD STREET RIGHT -OF -WAY (0.384 ACRES), FROM THE EAST NAVIGATION BOULEVARD PUBLIC STREET RIGHT -OF -WAY, NORTH APPROXIMATELY 278 FEET TO THE CITY LIMIT LINE; SUBJECT TO COMPLIANCE WITH THE SPECIFIED CONDITIONS WHEREAS, Port of Corpus Christi Authority (Owner) is requesting the abandonment and vacating of a portion of the Texaco Road street right -of -way (0.384 acres), from the East Navigation Boulevard public street right -of -way, north approximately 278 feet to the City limit line to upgrade their security capabilities at multiple locations throughout the Port; and WHEREAS, with proper notice to the public, public hearing was held on Tuesday, December 16, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate said portion of the Texaco Road street right -of -way (0.384 acres), subject to compliance with the specified conditions. (Exhibit A) NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the portion of Texaco Road street right -of -way (0.384 acres), from the East Navigation Boulevard public street right -of -way, north approximately 278 feet to the City limit line, as recorded in Volume A, Pages 30 -32 and Volume A, Page 33, of the Map Records of Nueces County, Texas, is abandoned and vacated, subject to the conditions specified in Section 2. below. SECTION 2. The abandonment and vacation of the above public right -of -way is conditioned as follows: 1) The fair market value of the property is $12,545.28. $8,184.29 is deducted from the fair market value as consideration for the retained utility easement in the entire right - of -way width of Texaco Road. $2,267.18 is also deducted from the fair market value as consideration for a portion of the value of right -of -ways to be acquired by the City from the Owner. Owner pays the remaining fair market value of $2,093.81 for the abandonment and vacation of the 0.384 acres of Texaco Road public street right -of- way. 2) Owner shall retain the entire right -of -way width of Texaco Road as a utility easement because of the existing utilities located within the street right -of -way. 3) City will be acquiring some property from Owner for a sanitary sewer easement, for buffer zone purposes. -440- ,.., -....� ..-.-, ef rontp,,hROW.PMAofCC•TexacoRd.doc Page 2 of 3 4) Upon the closure of the portion of the Resaca Street public right -of -way, from North Tancahua Street and Sam Rankin Street, the City and Owner, adjacent property owners to that portion of right -of -way, agree that the City will retain the entire Resaca Street right -of -way, between North Tancahua Street and Sam Rankin Street. 5) The City will also be acquiring a portion of the North Port Avenue public street right - of -way from Owner, as part of their street widening project of North Port Avenue, from the Interstate 37 public right -of -way, north to Whataburger Field. 6) Actual closure of the street right -of -way shall be coordinated so as to maintain traffic safety and emergency access. 7) Within 180 days of approval by Council and issuance of the ordinance, all grants of street closures and dedications of utility easements must be recorded at owner's expense in the real property Map Records of Nueces County, Texas, in which the property is iocated. Prior to Building Permit approval of construction, an up -to -date survey, abstracted for all easements and items of record, must be submitted to the Development Services Engineer. —441- 0: \Shared W ay W genda12008112- 16 \ORD- abandon- vacateStreetPubROW- PortofCC- TexacoRd. doc Page 3 of 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 Henry Garrett City Secretary Mayor APPROVED as to form: December 8, 2008 By: , l'1 P Yt -tteA_ '.1 Assistant City Attorney For City Attorney Q:\SharedUayW genda\2008 \12- 16 \ORD- abandon- vacatU9i4sQ'nbROW- PortofCC- TexacoRd.doc Page 1 of 3 ORDINANCE ABANDONING AND VACATING A PORTION OF THE SIGMOR ROAD STREET RIGHT -OF -WAY (0.388 ACRES), FROM EAST NAVIGATION BOULEVARD, NORTH APPROXIMATELY 281 FEET TO THE CITY LIMIT LINE; SUBJECT TO COMPLIANCE WITH THE SPECIFIED CONDITIONS WHEREAS, Port of Corpus Christi Authority (Owner) is requesting the abandonment and vacating of a portion of the Sigmor Road street right -of -way (0.388 acres), from East Navigation Boulevard, north approximately 281 feet to the City limit line to upgrade their security capabilities at multiple locations throughout the Port; and WHEREAS, with proper notice to the public, public hearing was held on Tuesday, December 16, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate said portion of the Sigmor Road street right -of -way (0.388 acres), subject to compliance with the specified conditions. (Exhibit A) NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the portion of Sigmor Road street right -of -way (0.388 acres), from East Navigation Boulevard, north approximately 281 feet to the City limit line, as recorded in Volume A, Pages 30 -32 and Volume A, Page 33, of the Map Records of Nueces County, Texas, is abandoned and vacated, subject to the conditions specified in Section 2. below. SECTION 2. The abandonment and vacation of the above public right -of -way is conditioned as follows: 1) The fair market value of the property is $12,675.96. $8,432.30 is deducted from the fair market value as consideration for the retained utility easement in the entire right - of -way width of Sigmor Road. $2,335.88 is also deducted from the fair market value as consideration for a portion of the value of right -of -ways to be acquired by the City from the Owner. Owner pays the remaining fair market value of $1,907.78 for the abandonment and vacation of the 0.388 acres of Sigmor Road public street right -of- way. 2) Owner shall retain the entire right -of -way width of Sigmor Road as a utility easement because of the existing utilities located within the street right -of -way. 3) City will be acquiring some property from Owner for a sanitary sewer easement, for buffer zone purposes. —443- 0: \ Shared \JayVlgenda12008 \12- 161ORD- abandon- vacateStreetPubROW- PortofCC- SigmorRd.doc Page 2 of 3 4) Upon the closure of the portion of the Resaca Street public right -of -way, from North Tancahua Street and Sam Rankin Street, the City and Owner, adjacent property owners to that portion of right -of -way, agree that the City will retain the entire Resaca Street right -of -way, between North Tancahua Street and Sam Rankin Street. 5) The City will also be acquiring a portion of the North Port Avenue public street right - of -way from Owner, as part of their street widening project of North Port Avenue, - from the Interstate 37 public right -of -way, north to Whataburger Field. 6) Actual closure of the street right -of -way shall be coordinated so as to maintain traffic safety and emergency access. 7) Within 180 days of approval by Council and issuance of the ordinance, all grants of street closures and dedications of utility easements must be recorded at owner's expense in the real property Map Records of Nueces County, Texas, in which the property is located. Prior to Building Permit approval of construction, an up -to -date survey, abstracted for all easements and items of record, must be submitted to the Development Services Engineer. ., n. aennnN2mmnomahanAnn- varateStreetPubROW- PortorCC- SigmorRd.doc Page 3 of 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 Hummel) Michael McCutchon Bill Kelly PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa City Secretary APPROVED as to form: December 8, 2008 By: Lit dAIP rette L•* :r Assistant City Attorney For City Attorney Henry Garrett Mayor Q:\SharedU ay\Agenda\2008\1 2- 16\ ORD- abandon- vacateStre4etPuoROW- PortofCC- SigmorRd.doc Page 1 of 3 ORDINANCE ABANDONING AND VACATING A PORTION OF THE EAST NAVIGATION BOULEVARD PUBLIC STREET RIGHT -OF -WAY (9.367 ACRES), FROM THE AVENUE "F" PUBLIC STREET RIGHT -OF -WAY, WEST APPROXIMATELY 5,857 FEET TO THE CITY LIMIT LINE; SUBJECT TO COMPLIANCE WITH THE SPECIFIED CONDITIONS WHEREAS, Port of Corpus Christi Authority (Owner) is requesting the abandonment and vacating of a portion of the East Navigation Boulevard public street right -of -way (9.367 acres), from the Avenue "F" public street right -of -way, west approximately 5,857 feet to the City limit line to upgrade their security capabilities at multiple locations throughout the Port; and WHEREAS, with proper notice to the public, public hearing was held on Tuesday, December 16, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate said portion of the East Navigation Boulevard public street right -of -way (9.367 acres), subject to compliance with the specified conditions. (Exhibit A) NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the portion of East Navigation Boulevard public street right -of -way (9.367 acres), from the Avenue "F" public street right -of -way, west approximately 5,857 feet to the City limit line, as recorded in Volume A, Pages 30 -32 and Volume A, Page 33, of the Map Records of Nueces County, Texas, is abandoned and vacated, subject to the conditions specified in Section 2. below. SECTION 2. The abandonment and vacation of the above public right -of -way is conditioned as follows: 1) The fair market value of the property is $306,019.89. $204,111.28 is deducted from the fair market value as consideration for the retained utility easement in the entire right -of -way width of East Navigation Boulevard. $56,542.03 is also deducted from the fair market value as consideration for a portion of the value of right -of -ways to be acquired by the City from the Owner. Owner pays cash for the remaining fair market value of $45,366.58 for the abandonment and vacation of the 9.367 acres of East Navigation Boulevard public street right -of -way. 2) Owner shall retain the entire right -of -way width of East Navigation Boulevard as a utility easement because of the existing utilities located within the street right -of -way. —446— .. _ .___ _,nn..-,••• ,c%fe., .,w..- w..- ,.a- a.-e., as tPuhROW- PnrtnfCC- FNaviaation.dao Page 2 of 3 3) City will be acquiring some property from Owner for a sanitary sewer easement, for buffer zone purposes. 4) Upon the closure of the portion of the Resaca Street public right -of -way, from North Tancahua Street and Sam Rankin Street, the City and Owner, adjacent property owners to that portion of right -of -way, agree that the City will retain the entire Resaca Street right -of -way, between North Tancahua Street and Sam Rankin Street. 5) The City will also be acquiring a portion of the North Port Avenue public street right - of -way from Owner, as part of their street widening project of North Port Avenue, from the Interstate 37 public right -of -way, north to Whataburger Field. 6) Actual closure of the street right -of -way shall be coordinated so as to maintain traffic safety and emergency access. 7) Within 180 days of approval by Council and issuance of the ordinance, all grants of street closures and dedications of utility easements must be recorded at owner's expense in the real property Map Records of Nueces County, Texas, in which the property is located. Prior to Building Permit approval of construction, an up -to -date survey, abstracted for all easements and items of record, must be submitted to the Development Services Engineer. Q:\SharedUay Agenda12008 \12- 16 \ORD- abandon- vacateStre l ,ROW- PortofCC- ENavigation.doc Page 3 of 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 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 Hummel) Michael McCutchon Bill Kelly PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa Henry Garrett City Secretary Mayor APPROVED as to form: December 8, 2008 By: /a. Yve; a Agu' Ass tant City Attorney For City Attorney -448 - n.teh...e.n i.,.nenand.tonnau 9_1 Rt flan- ahandnn- varatpStrantPObROW- PartafCC- ENaviaation.doC A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A RIGHT -OF -WAY AGREEMENT WITH THE PORT OF CORPUS CHRISTI AUTHORITY FOR THE PURPOSE OF EXCHANGING REAL ESTATE RIGHTS NEEDED BY EACH PARTY. 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 Right -of -Way Agreement with the Port of Corpus Christi Authority for the purpose of exchanging real estate rights needed by each party through the process of vacating and abandoning, granting, selling or other means, to convey these rights to each other. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor, City of Corpus Christi APPROVED AS TO FORM: December 8, 2008. At Yrtte 4 :- A istant City Attorney For City Attorney —449— 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 —450— o_ \ CJ i� ■ 3§ l�I7n i L // i \ PCCA PROPERTY i' g\... i, / zp� ' V _, it., �� > - --� ,\ JOE FULTON INTERNATION4 j 6 IT \ TRADE CORRIDOR / G Q /icy. _ 4 % S. „ ' I' J. POPE I \ \\ ! j / 45� • c W A /iJTi? , VR i A - (FENCED) /`� r 8 5;' -- - .__. -enr WITS I i i �) �i — r� MARTIN • ,1� - =' NAVIGATION BLVD - _ - -.� -a- .. -. I , Jrk' —rIIE.. I,LI L-�./i PARTNER. - utI 7�� �I A .r.1.H ILI.►.��VilL- - -- -- �7x xx . .w' P— - ����i�� p� NORM BANK BAR AR 'W JF Y n\ (KIRBYxMARINE�J. ,._e9 . _.- `; ''60 -r, „y°"��p, nl,,�? x° O p N \ r Ip , i17-35:t �,t I d I �Y- V. 2 ,/.i�;A..e p . °aliNk Y 1 ...elb. nt' $0,il f . �t �P i ' T 4a , rr j w , it ,�`" bs+-� Ph r,JFx -. J}' V w.' '' ' 'h4a I O'` RID6E?i. el �gP s \ '� 6�Q -lp1 {s 'I V!" pyyCY,r, g I t " 1 y 4 R-AO W ! O -1 \ I • \1e5 T `\ 5r i/ !�S 4J 4..'t+ 5 "E. r }2 AL 41 ..; ..}-1 J c ^� t y, } B:. 3.vt1 kc t '�' AiL.Sr�4 _,'Zile eV I u. �. C .x D /1/0-.... 't " ri>-_fA R ;s - I V' �t f . , I T� 4- rJ, I . �:� �.11 .!S; ;t. Z-T 0 •b 01::-._ +F y .'..�a.I'r; Lrltii'. y 1""'..��i ,.:..pATll o < I y ▪ c ' _C 9:t. '^ T -.: 1•. '4 . rl. — 4_4_ _. — �_i� .Zl N C 1 • 1 _r�kt Far [ 1 O m M ' IPUDU 55 14 —IIP en s n D � DD. la'� ���iaTO Al o c x —\ Y n.- d /? A T_ _ TERMINAL I I i ° I . -' �� 1 1 ITCO REF. TRUCK V ■ o N L • —lam\ _ '—sN,i m BASEBALL $,a. -., y C A `�\ • h�\� �'•i �j'��— a STADIUM I° lig_i_ A BA O __ ��x aE / - 6V m m U o I �� • ��.,,,. ��I� O �..1n FI p n i tom) '�,; \ 42\\\'t .,,- �l I `_ —_ 1 • w,j!�� /e:: —NR.WN D. DODDE ��` ` 1 y illtiSECURITY COMMAND rsT. `, ,a CENTER _� iL-',. CoUNV DMIO tun OT DMED ROAD R.c a 102021 -> PORT OF CORPUS CHRIST AUTHORITY I GRANT 7 - SECURITY PROJECT I I COUNTY ROAD CLOSURE _ EXHIBIT C ' _+mho.._` e -Page 7 of 9 OF cum own Rs SNOW ° zc 2007 Pk M OR LOCH OD! W." F° b -451- I I I I I I 0 100' • 200' SOD' 400' C, R 1,i (..; R S PCCA DISK ENTER-2 N 88'48'17" E 34.48' art umrrs N 05'48'29 E 278.93' Jommitillinmarait S 80'30'27" E Thaw, 43.17' Sf41f±4.S8ST. D. 5/6' LIT. S 88'41'113" W 80.52' NAVIOATION BOULEVARD , s awls. w _ j 20.70 P40. 5/8' in. S 05'48'29" W 275.95' wir POINT OF BEGINNING hIQIES: at 1' ArrsttECON9PsITINOt NAg27TEVSOC1 ZeNcgeoNugIER2PCBRA sPIc.6cAoNEini ED O HE ltspoLVRT ON AVENUE F. UNORM OF NARGADON BLVD. 2. MAP TO Katt- - NOTES BEING A I.241 ACRE TRACT, CURRENTLY A PORDEBOOF UE JASLOSED. ,435:9: ........ .42`, Ki, E?",4* ‘. e•T,E.E2 ". l'' 4. - .e..•.:7 iky. „ Wile - • 'Z 0 •„..47," 1,1,As.;E:sFRANCO,".24.4,4 , ' • Ir4Li t 6,5,$L ; ::: at i 1 f . 4 Ariegais::. 5 EXHIBIT C - 1110.1411br',1100. , ' 3/0.1/03 7--- Page 3 °f 9 - OF CORPUS CAN ' bra PCCA Mgr-0340 Pc DATE RENON . PORT OP CORPUS CHRISTI AUTHORITY WI A R .. I .. MiDSTR A iv: p R .. .. R s PROPOSED COUNTY R.O.W. CLOSURE PROPOSED CITY ROW. CLOSURE RVE JOB #02024-7 42.148.119411104WkWoll d CITY R.O.W. CLOSURE AS SHOWN AVENUE F RIGHT OF WAY OW Fat MAR. 2008 I I I V 0 1001 200 300' 41011R1.11211NIVROCIMI. IMP tame FRU I.R. N 88'48'17" E 60.00' MY LIMB N 01'18'42" W 278.70' e' LIR I ENTER-2 DISK CITY LIMITS S 88'41'18" W 60.00" S 01'18'42" E I ig 278.58' . I ti I* r% I C' • • It POINT OF BEGINNING N 85'41.111" E 909.89' NAVIGATION BOULEVARD LEM 1. BEARINGS ARE BASED ON Fps BEARINGS, RAD 27, 'TEXAS SCUM ZONE PCCA IKEWNENT "INTER-2 pCCA BRASS RISK UDCAIE0 ON NORm END OF 1HE WEST CULWITal AWNUE F, 297 NORM OF NAVIGATION MAP Ict AC *SING AE0.3AACRE TRACT. CURRENTLY THE soup, „ jp Et .37;:st NS ri511:i..0-rWo ..RA FOCA pRD,1,107-0340 No DATE REVISION 2 LE9E89; PROPOSED COUNTY RAW. CLOSURE PROPOSED CITY R.O.W. CA.OSURE lk RYE /32024-7 4170■1489414ii4~. . . PORT OP CORPUS CHRISTI AUTHORITY 3 l__ EXHIBIT C 7 Tr Page 5 of 9 — of COMM wall 7A5 SHOWN TEXACO ROAD "5 . 7008 af -4 ctb RIGHT OF WAY 2 CITY R.O.W. CLOSURE 9 I 4.7•"05, PORT �1011 EXHIBIT C - �41.11r e Page 6 of 9 — OF coaw anu • l -45R- CITY R.O.W. CLOSURE E1 K 5 SHOW( SIGMOR RD. " APR. 2005 LOCATION MAP "° 1 0 1121 200' soa• 400' a RUM NIIMISIIONAL 111MS ONECON n : C 0 R 1.1 S HRiSTI N 88'48'171' E 60.00' CITY LACS N 01118'42" W 281.73' OR • oRpLiSC: R S S 88'41118. W 60.00" NAVIGATION BOULEVARD CITY LMTS r.) . R p S [: S ... S 0118'42" E 281.81' PG PONT OF BEGINNINO N envie E 2400.80' ND= 1. BEARINGS ARE BiSED ON fl-PS BEARINGS, NAV 27, TEXAS SOUTH ZONE PCCA MONUMENT ENTIR-2-_, PCCA BRASS DISK LOCATED ON THE NORTH END OF THE WEST CULVERT Oil mEwygrt .297 NORTH OF NAHOATION Bea 2. MAP TIVAC,*-1W1, BMW A 0.388 ACRE TRACT, CURRENTLY THE SOUTH 012 RD ,TO BE CLOSED. -11.4?:..4;0.197uk;i)11:Ek /C1-;.174:411*.JANISSAn ........ ;; . . ... • • .:f.yAr-t4FRANGO,"- • ...a • •.•71' Z.- _Woo e No, DATE 1 2 3 V' A I, LAI PROPOSED COUNTY R.O.W. CLOSURE PROPOSED CITY R.O.W. CLOSURE ENTER-2 DISK .—\ PCCA PROJ. /37-03M RYE JOB /02024-7 m17MAMPIP■W‘MIYHATO REMICK PORT OF CORP US CHRIST AUTHORITY 4 ra EXHIBIT C- 2.— Page 7 of g — Ur JAW Winn 1-1 -45 CITY R.O.W. CLOSURE AS SHOWN cOb SIGMOR ROAD RIGHT OF WAY MAR. 2008 • me. 3 I 1 0 150 • 300' LFSEND; PROPOSED CITY R.O.W. CLOSURE 460 602' p ENTER -2 DISK NOE.1; 1. BEARINGS ARE BASED ON 9PS BEARINI NAG 27 TEXAS SOUTH ZONE. PCCA MONUMENT TENTER-2 . PCCA BRASS 9ISK LOCATED ON THE NORTH END 1W THE WEST MUM ON AVENUE F. 20T NORTH OF NATICATION BLVD. 2. MAP TO ACCOMPANY 00 BEING A 9.357 ACRE TRACT LCVFENTLY ALL PORTIONS VEADMIEN CITY LIMITS TO BE CLOSED. cf4:,:t -)Th**C"lic",,, • :114r.-r•-• (pc PCCA PROS p7-63e ,A.O-MI•rs4 NO DATE REVISION -099.C.19FIRANCOVO'.#'1- dAre 044‘4- 3 /051/48 4 5 EXHIBIT C Page 9 of 9 — • 4' 1 fi 1,4 RW JOB 001024-7 oilii~letto01)1,41 or otoois. omit 459 PORT OF CORPUS CHRISTI AUTFIORITY CITY R.O.W. CLOSURE AS SHOWN NAVIGATION BLVD. NIL sr RIGHT OF WAY ra 4 Right -of -Way Agreement THE STATE OF TEXAS § BY THIS AGREEMENT COUNTY OF NUECES § The City of Corpus Christi, ( "City, "), whose address is 1201 Leopard, Corpus Christi, Nueces County, Texas, 78401, and the Port of Corpus Christi Authority, ( "Port"), whose address is 222 Power Street, Corpus Christi, Nueces County, Texas 78401, mutually agree to enter into a Right -of- Way Agreement, ( "Agreement "); for the purpose of exchanging real estate rights needed by each party through the process of vacating and abandoning, granting, selling or other means, to convey these rights to each other. THEFEFORE, THE CITY AND THE PORT AGREE AS FOLLOWS: 1. The City shall vacate and abandon certain road right of ways to the Port as follows: 1. 408,026.52 square feet of Navigation Boulevard as shown on the attached Exhibit A. 2. 16,901.28 square feet of Sigmor Street as shown on the attached Exhibit B. 3. 16,727.04 square feet of Texaco Street as shown on the attached Exhibit C. 4. 54,362.88 square feet of Avenue F as shown on the attached Exhibit D. The City makes no warranty as to the title of the rights -of -way and shall convey these rights by a Quit Claim Deed to the Port using a document similar to the attached Exhibit E. The City may retain a Utility Easement upon the entire area of each parcel of land that is vacated and abandoned. 2. The Port shall convey real estate rights and pay cash compensation to the City as follows: 1. Fee simple rights to 1,757 square feet of N. Port Avenue, as shown on the attached Exhibit F. The Port shall execute a Real Estate Sales Contract and a Warranty Deed to the City, acceptable to the City. 2. A Sanitary Sewer Easement, out of Blocks 64, 65, 66, and 67, Beach Portion, containing 37,050 square feet, similar to the attached Exhibit G. 3. Fee simple right to 41,400 square feet, being the north one half of Resaca Street as shown on the attached Exhibit H. The City shall initiate the vacating and abandonment of the entire sixty feet (60') of Resaca Street. Upon vacating, the north one -half of the street must be conveyed to the Port and the south one half to the City. Once the entire right -of -way is vacated and abandoned by the City Council, after a public hearing, the Port shall subsequently convey fee simple title to the City, via Quit Claim Deed, to the north one half of Resaca Street. 4. In addition, the Port shall present cash payment to the City in the amount of $55,300. H:ViOMEWormaR\PROJECTMisc. InslnmentsWavigationllvd .ROW -V &A Agreement-doe Page 1 of 2 —460— 3. Subject to the performance by both parties of their respective obligations and the satisfaction of all conditions set forth in this Agreement, all transactions contained in this Agreement must be closed within 180 days after execution of the Agreement. 4. It is understood and agreed that either the City or the Port may perform or cause to be performed an environmental audit, including "all appropriate inquiry" as term is used in the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. Sec. 9601(35) (B), and that the time required for the audit may cause a delay in closing and the results of the audit may cause a cancellation of this Agreement. In this connection, City and Port grants access to their property for due diligence and inspection purposes. Each party warrants to the other party that they have disclosed, before the closing of this Agreement, all relevant information known to exist by each party. 5. The City and the Port each accepts title to their Property subject to all recorded restrictive covenants, use restrictions, and all applicable City zoning regulatory ordinances, if any. 6 This Agreement survives the vacating and abandonment process and the delivery of deeds, easements, and other necessary documents, and all terms and conditions remain in effect between the City and the Port. 7. The City and the Port are exchanging surface rights only. No mineral rights are included in this exchange, with each property subject to existing mineral exploration and extraction rights assigned to other parties. 8. Time is of the essence in connection with this agreement. Executed in duplicate this Port of Corpus By: Name: Title: date of aP,GUTIU1 �I,rrol2 Date: DEC 0 9 7088 , 2008 , 2008. City of Corpus Christi By: Name: Title: Date: , 2008 Approved as to legal form: Mary Kay Fischer City Attorney By: a can anfCi s Assist ty Attorney C:\D000ME- RADMBJI —NACAI —1 \Tcn \XPppwiseWavigationBlvd .ROW -V&A Agtcementdoc Page2of2 _461 aunt taw 150' 300' 40 SOO' LERZNG: Kttissqg PROPOSED CITY R.O.W. CLOSURE ENTER -2 DI U) . : ... • • CI) MIES; 1. pEctalzumcospiu411,3Aftlit) RON2r5p134AARINGS. HAD 27. 1EXAS SDUIT1 ZONE. END OF THE REST CULVERT ON AVENUEBRFASS. 7.9PISKNORIMAW1 OFIEDNATCAMETONNFICT. 2. LIALLAP poRTO matiACCIZIPs ORES BEING A 9.367 ACRE TRACT. CURRENTLY VD•IN7HIN CITY LIMITS TO BE =SOD ac;r•t;?. rt,7 . ... • 4'1 " A.a.• te. • -EA, 1' 75:kcE: e:R A Nc CriC AS** Inc? W- n 2 111 on DATE ',L.. rn.........— Maim ...... 4altallinallell ______ . . OF CORPUS CHRISTI AUTHORITY CITY R.O.W. CLOSURE 3 4 5 NAVIGATION BLVD. RIGHT OF WAY t AR. 2001 7 - a sarrgS.M OILMINIC SCJLE 0 100' 200' 300' 400' JOE MAJON WON 0011•3011 N 8814817 E 60.00' an Uliffe N 011842" W 281.73' 0 • A • S 88'4118" W POINT OF BEGINNING 60.00" N eravi• E 2400.00' NAVIQA1JON BOULEVARD D .. .. e". ::*: (": I..: C.'• I ENTER-2 DISK_ \ M .MB1.30 N MIES: 1. BEARINGS ARE BASED ON DAS BEARINGS. NAD 27 TEXAS SOUTH ZONE. PCCA MONUMENT "ENTER-r. PCCA BRASS DISK LOCATED ON THE NORTH END OF THE WEST CULVERT ON AVENUE rrzar NORTH OF NAVIGATOR BLVD. 2. MAP TO ACCIegnit.), BDNG A 0.388 AE TRACT. CURRENTLY THE SOUTH al Ftp TO BE CLOSED. ... ..... 5 Te- ecc •-• .caarak116SsettA77„.L. ........ I • E FR " ''"O ........ NM DATE PCCA PRO.L.#07-034C *ELISION 3 4 5 7 S LE: riirec4 PROPOSED COUNTY R.O.W. CLOSURE PROPOSED an R.O.W. CLOSURE RVE a 1:12024-7 PORT Or CORPUS CHRISTI AUTHORITY CITY R.O.W. CLOSURE AS SHC701 rib SIGMOR ROAD TpAR. 2001 c PM M. OF WAY 3 GIUMIC WAIL 0 100' 200' 30e 400. "r• JCSRLIONIM2011L TIVCS N worry- E 60.00' CITY LIMITS N 0118'42 W 278.70' I c% rtIC) CRY LJMITS ENTER-2 DISK— \ 0 S 01'18'42" E I it 278.58' p .ks 7* 0 R. S 88'41'18" W 60.00" NAVIGATION BOULEVARD POINT OF BEGINNING N 5V41'10. E 909.69 J NOES; 1. BEARINGS ARE BASED ON CPS BEARINGS, NC 27,TDIAS SOUTH ZONE, PCCA MONUMENT 'ENTER-2". PCCA BRASS DISC LOrATED ON THE NORTH DO OF THE VEST CULyita ON AVENUE F, 297' NORTH OF NAWGATION BLVD. 2. MAP TO f CITES O A 0.384 ACRE TRACT. CURRENTLY 111E SEL914 19 BE CLOSED. .1-tt /4 tr..489 le4.m.„4 • • :.•!:" ' ' :-4 7A2 9kil LEGEHLb rge A 3%..31iY1 PROPOSED COUNTY R.O.W. CLOSURE PROPOSED OTT R.O.W. CLOSURE NM DAM MCA Iriwo.r......,. REINSION ..— . Mraliripill_ana 11111..11-=' 0 4 acompumum .--. . PORT OF CORPUS CHRISTI AUTHORITY CITY R.O.W. CLOSURE • 5 5 ?law a si"Kmw TEXACO ROAD n ,,,,, RIGHT OF WAY fin - ....--. -... ststq I °RAMC SCALE 0 100. 2001 300' 400' JOERLTOIMISSION01. / S 80'30'27" E • 7PACIE RONSON / 43.17' ftwAvnpr. FND. 5/B' I.R. PCCA DISK ENTER-2 N 88'48'17" E 34.48' ---------- CRY MB N 05'48'29" E 278.93' S 88'41'18" W 80.62' FND. 5/C L R. S 05'4829" W 275.951 END. I.R. POINT OF BEGINNING NAVIGATION BOULEVARD 5 58'41'1r IV 20.70' 8911: 1. BEARINGS ARE BASED ON GPS BEARINGS, NAD 27. TEXAS SOUTH ZONE. PCCA MONUMENT TRIER-2.. PCCA BRASS DISC LOCATED ON THE NORTH END OF THE 111ESCULVERT CM AVENUE F. 297 NORTH OF NAMGA11ON BLVD. opriamtgefrailL ..• . . 2. MAP TO A NOTES BEING A 1.248 ACRE TRACT. CURRENTLY A PORT! 4<'' . • ' COSED. ...... 4• rt-T-5: 7 4\ tt 1 Zr,„1--"t" •-• is :4.1° : 45,... V C.- - ‘e •••• V • '"'.?' 0.• : ............. • witz.zt., '4... • 'II." .. s ,.r.,-, cp , ,: .-c.•4 .; .... .. ....... 7,.. . ............, • ... ... ."-:.LR -..a. drtils* 9..#4 5\0.- 42,./ fi.- 7;:,... at:, IR DATE KRA PRO.I.507-034G REVS= 2 21 4 5 7. S LE123111 A PROPOSED COUNTY R.O.W. CLOSURE PROPOSED an R.O.W. CLOSURE RVE JOB M22024-7 PORT OF CORPUS CHRISTI AUTHORITY CITY R.O.W. CLOSURE HT OF WAY AVENUE F MAt 2008 RIG cit THE STATE OF TEXAS § COUNTY OF NUECES § QUIT CLAIM DEED KNOW ALL MEN BY THESE PRESENTS: That the CITY OF CORPUS CHRISTI, a Texas Home Rule municipal corporation, 1201 Leopard, Corpus Christi, Nueces County, Texas 78469 -9277, collectively called Grantor, for and in consideration of the sum of One Dollar and No /Cents ($1.00) in hand paid by the Grantee hereinafter named, the receipt of which is hereby acknowledged, does by these presents grant, convey, release and forever QUIT CLAIM unto the Port of Corpus Christi Authority of Nueces County, Texas, 1305 N. Shoreline Boulevard, Corpus Christi, Texas, 78401, all that certain property situated in the County of Nueces County, Texas, known as: Four tracts of land comprised of street right -of -way as shown on the maps attached and incorporated as "Exhibits A, B, C, and D ". The abandoned and vacated property as shown above will be retained by Grantor in their entirety as utility easements. TO HAVE AND TO HOLD, the said premises, together with all rights, improvements and appurtenances thereto belonging, unto the said Grantee above named, Grantor's successors, heirs, and assigns, forever, so that neither the under signed, or any person or persons claiming under the undersigned, shall at any time hereafter have or claim any right, title or interest in or to said property, or any part thereof, except as to the retention of the utility easements. Executed this day of , 2008. GRANTOR CITY OF CORPUS CHRISTI `Angel R. Escobar, City Manager —466— CVUIQIT "r THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me, this day of , 2008, by `Angel R. Escobar as City Manager of the City of Corpus Christi, a Texas home -rule municipal corporation, on behalf of said corporation. Notary Public, State of Texas [Seal] APPROVED AS TO LEGAL FORM, THIS DAY OF , 2008. FOR THE CITY ATTORNEY Veronica Ocafias, Assistant City Attorney CITY LEGAL DEPARTMENT —467— 0 160' 1001 4301 500' =NF lir awl PROPOSED CITY R.O.W. CLOSURE ENTER -2 DISK WO= 1. BEARINGS ME BASED ON FPS BEARINGS, NAD 27 TEXAS SOUTH ZONE. PCCA MONUMENT 'ENTER-2 . PCCA BRASS DISK LOCATED ON THE NORTH MD OF THE WEST CULVERT ON AVENUE F. 291 NORTH OF NAVIGATION BL.VD. 2. NAP 70 ACCOMPANY OTES BEING A 9.367 ACRE TRACT. CURRENTLY ALL PORTIONS VD- 111111IN CITY OMITS TO BE CLOSED. ..... ...eitc:15re,;•„-r skske:::c -1/47 _ „.. ........ ..• - u• ••• _ • 3 /0 ?AA Th AVSij fo; .• _ • • — _ . .. 1 CV CO : • ;18 n I TEUCO FCI in ;72 SAID 'CO to PCCA PL /07-034C '4. RVE JOB pans-7 Cr" 1 iu I gs S w b NA. IMO IC DATE REVISION 2 S S S 7 PORT OF CORPUS CHRISTI RUTHOIRITY CITY R.O.W. CLOSURE 11.0%.0aNts• -406arusagion ON pr NAVIGATION RM. IL Ica. millrace RIGHT OF WAY GRAPHIC SCALE 0 100' 200' 300' - • - PCPT 1‘. !..: . . JOE RUM WIIINATOML MADE 0011110011 N 88'48'17" E 60.00' CRY LIMITS N 011842" W 281.73' -a ' 41. V. 4- S 88'41'18' W POINT OF BEGINNING • 60.00" N THE41.18n E 2400.80' NAVIGATION BOULEVARD ••••• :7) 1..: LISTS ENTER-2 DISK --\ S 0118'42 E 281.61' t‘ .. .. D : : MIES: 1. BEARINGS ARE BASED ON pPS BEARINGS, NAD 27. TEXAS SOUTH ZONE. PCCA MONUMENT "ENTER-2. PCCA BRASS DISK LOCATED ON THE NORTH END OF THE VITST CULVERT ON AVENGE F, 297 NORTH OF NANGATION BLVD. 2. MAP TO ACCATSWIR BEING A 0.388 ACRE TRACT, CURRENTLY THE SOUTH GM Rp TO BE CLOSED. ...... .`te er 7674 -4ariwtS;;;7"k 'At• :3/4. • re .......... „ . - E41-FRATC0,7h.lp; 414`.€:1C :tap. Savice PCCA PROS 107-034C LEND: r A PROPOSED COUNTY R.O.W. CLOSURE PROPOSED CITY R.O.W. CLOSURE RYE XS R2024-7 M .0..91.IO N DATE REMSON 2 3 4 S 7 a • PORT OF CORPUS CHRIST AUTHORITY CITY R.O.W. CLOSURE 0.1111 AS 9101114 eylt SIGMOR ROAD MM. 2008 RIGHT OF WAY 3 0 1001 200' 300' 400' JOE RUON MWMUML WOE COMM N 88'48'17" E 60.00' CITY MS N 01'18'42" W 278.70' S 88'41'18" W 60.00" NAVICIATON BOULEVARD FND. 5/8' I.R. S 0r18.42 E 278.58' ENTER-2 DISK —\ POINT OF BEGINNING N W41'18" E 909.69' NMESI 1. BEARINGS ARE BASED ON GPS BEARINGS, NAD 27. TEXAS SOUTH ZONE. PCCA MONUMENT 'ENTER-r. PCCA BRASS DISK LOCATED ON THE NORTH DC OF THE BEST cuLyalr-001 AVENUE F. 297 NORTH OF RAMC/MON BLVD. 2. MAP TO f rEWES23pNG A 0,384 ACRE TRACT. CURRENTLY DIE S0014 ' :Ray BE CLOSED. 71111 ?"-:*g." 'Lei • • - ' latis4) .7 /a in Av DATE PCCA PRP!. 907-0340 RUMOR LEND: rte PROPOSED COUNTY R.O.W. CLOSURE PROPOSED an R.O.W. CLOSURE RVE .7011 902024-7 I.. C.': 1. .. tt smenevaliwonswe PORT or CORPUS CHRISTI AUTHORITY CITY R.O.W. CLOSURE TEXACO ROAD ownrr nr WAY MAR. 008 OR4PIIIC SCALE 0 100' 200' 3012 400' PCCA DISK ENTER-2 N 884817" E 34.48' an' LIMITS N 05'48'29" E gy JCIERILTOININ014211211AL S 80'30'27" E MAPE canal 4317' Aft*.11ftst FND. 5/8" I.R. c.7 MD. 5/8" I.R. S 0548'29" W 278.93' 275.95' S 88'41'15 W 80.62' NAVIGATION BOULEVARD 5/B' I.R. POINT OF BEGINNING S 88'4118' w 20.70' /11:8E8: 1. BEARINGS ME BASED ON CPS BEARINGS, HAD 27, TEXAS SOUTH ZONE, PCCA MONUMENT TOCIER—t. PCCA BRASS DISK LOCATED ON THE NORTH DC OF Dm 11ES1-WULVERT ON AVENUE F. 297' HORN OF NAHCMON BLVD. 2 MAP TO Aq NOTES BEING A 1.248 ACRE TRACT, CURRENTLY A PORT E J3EL,CLOSED. . - . ocr ; ...... „.. "1; .. •.• •aa•asa .... ... . • A Err FR A 1‘, rz3:4. I. lierc, /44 NO. DMZ REWMON 2 3 4 5 LEND: r A PROPOSED COUNTY R.O.W. CLOSURE PROPOSED CITY R.O.W. CLOSURE AS SHOWN MOM RIX DB /02024-7 IL abeesown/wl 7 8 S POT OP CORPUS CHRISTI AUTHORITY CITY R.O.W. CLOSURE In AVENUE F MM. 2008 RIGHT OF WAY ;lox ETa z U N TOP OF CONCRETE' )_7.': c:_. ...Ai. CONCRETE CURB INLET SANITARY MANHOLE 11'05'12" W 1.10" PRIVATE ROAD N__ Stroman Rd. GRATE INLET (TYP.) EXISTING R.O.W. LINE N 54'32'35" E 202.67' �. POB S 54'32'35" W 203.13' 14.17,184.205.97 E:1,33B4O00.05 STA 46 +34.45 35' LEFT BUILDING CURB INLET DROP INLET CONCRETE PARCEL 10 (EASEMENT) 0.0203 AC. (885 S0. FT.) a EXISTING R.O.W. LINE c. 47 +00 _ .Acre �.., 48 +00 45€ Po Ave cess c��! 'Jmity usemera Goc. f2U0•'32163 I. DRAINAGE STRUCTURE EXISTING R.O.W. EXISTING Stroman Rd. (Public) S rebricuiurs ▪ M'.SHLLA.NEO: S ACRES NORTH Qt / OF CITY IMPROVEMENTS . STUCCO /1 1 BUILDING METAL FRAME BUILDINGS BEARINGS ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, NAD83 (1993 ADJ.). SOUTH ZONE (4205). ALL DISTANCES ARE SURFACE AND MAY BE ADJUSTED TO GRID BY DIVIDING BY THE CONVERSION FACTOR OF 1.000001. THE DEDICATED RIGHT —OF —WAY WIDTH OF PORT AVENUE AS FOUND IN VARIOUS PUBLIC RECORDS, VARIES FROM SIXTY (60) FEET TO SEVENTY (70) FEET FROM HWY 37 TO U.S. HWY. 181. THE EXISTING PHYSICAL IMPROVEMENTS AS WELL AS FOUND MONUMENTATION SUPPORT THE WIDTH OF SEVENTY (70) FEET FOR THE ENTIRE LENGTH OF THIS PROJECT. AREA PARCEL 10= 885 SQUARE FEET. 1, Randi E. Evans, hereby certify th was pre•ared from a survey, mode; undo y direction and that it is !' ;Qom er. -N •;S +ti'; • 9 •ro, L .. ..............................r R: E EVANS mop ONIOINN Randi E: Evans, R.P.L.S. 5373 ©9 /B \' 40 0 40 �9er• ' G —472 MATCH LINE B PARCEL 10 (EASEMENT) SURVEY PLAT TO ACCOMPANY METES & BOUNDS DESCRIPTION: SHEET 1 OF 3 M.MAVERIC'K ENGINEERING, INC. TEL: 361 696 3500 FAX: 361 696 3750 400 MANN ST., STE. 200 CORPUS CHRISTI. TEXAS 78401 EXHIBIT "F" GUARD POST CO [� (TYP.) R =536 O0' 14" Q A= 34'09 14 C LEN = 314.80' BRG =N 71'37'12" E L= 318.91' R= 535.00' _. A =34'09 13" C LEN = 314.21' BRG =S 71'37'12" W CONCRETE .rr 42.6 BUILDING EXISTING EXISTING \`9l R.OW. LINE O.W. LINE PARCEL 10 (EASEMENT) 0.0203 AC. (885 SQ. FT.) 1.00' 35, ELL= NEC J5c L ACRES r[•E .a■ S NORTH OF \ Y \ G \,si kXaa vtils METAL FRAME BUILDINGS ASPHALT 4- ?~- oece# \ o BEARINGS ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, NAD83 (1993 ADJ.) SOUTH ZONE (4205). ALL DISTANCES ARE SURFACE AND MAY BE ADJUSTED TO GRID BY DIVIDING BY THE CONVERSION FACTOR OF 1.000001. THE DEDICATED RIGHT -OF -WAY WIDTH OF PORT AVENUE AS FOUND IN VARIOUS PUBLIC RECORDS, VARIES FROM SIXTY (60) FEET TO SEVENTY (70) FEET FROM HWY 37 TO U.S. HWY. 181. THE EXISTING PHYSICAL IMPROVEMENTS AS WELL AS FOUND MONUMENTATION SUPPORT THE WIDTH OF SEVENTY (70) FEET FOR THE ENTIRE LENGTH OF THIS PROJECT. AREA PARCEL 10= 885 SQUARE FEET. I, Rondi E. Evans, hereby certify that the foregoing map was prepared from a survey, mode on the ground, under my direction and thot it is true and correct. Randi E. Evans, R.P.L.S. 5373 40 0 40 —473— PARCEL 10 (EASEMENT) SURVEY PLAT TO ACCOMPANY METES & BOUNDS DESCRIPTION: SHEET 2 OF 3 MA MAVERIC'1< ENGINEERING, INu. TEL: 361 696 3500 FAX: 361 696 3750 400 MANN ST., STE. 200 CORPUS CHRISTI, TEXAS 78401 EXHIBIT "F" G G4 t 4 DRIVEWAY i ^GRATE INLET CRATE INLET -WATER METER \ 35' O +rST NTryf ASPHALT DRIVEWAY CHAIN LINK FENCE I N Q I,. 4 89 %N-GRATE INLET 1 4 e• 4e, Jr `0 f S ilk 'r\ 4 (4 o NN N „_‘‘‘. \L =1.77' R= 82.65' lu \ Ypa". A=01-13137" Jgi`ssost BRG=S LEN= i ° w PARCEL 10 (EASEMENT) 0.0203 AC. (885 SQ. FT.) WSCELL NEOUS o.C:rES NCR1 BUILDING GUARD POST MAN HOLE BEARINGS ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, NAD83 (1993 ADJ.) SOUTH ZONE (4205). ALL DISTANCES ARE SURFACE AND MAY BE ADJUSTED TO GRID BY DIVIDING BY THE CONVERSION FACTOR OF 1.000001. THE DEDICATED RIGHT -OF -WAY WIDTH OF PORT AVENUE AS FOUND IN VARIOUS PUBLIC RECORDS, VARIES FROM SIXTY (60) FEET TO SEVENTY (70) FEET FROM HWY 37 TO U.S. HWY. 181. THE EXISTING PHYSICAL IMPROVEMENTS AS WELL AS FOUND MONUMENTATION SUPPORT THE WIDTH OF SEVENTY (70) FEET FOR THE ENTIRE LENGTH OF THIS PROJECT. AREA PARCEL 10= 885 SOUARE FEET. I, Rondi E. Evans, hereby certify that the foregoing mop was prepared from a survey, mode on the ground, under my direction and that it is true and correct. Rondi E. Evons, R.P.L.S. 5373 50 0 50 iIIO 4- PARCEL 10 (EASEMENT) SURVEY PLAT TO ACCOMPANY METES & BOUNDS DESCRIPTION: SHEET 3 OF 3 10 ENGINEERING. I]r. MAVERICK TEL: 361 696 350( FAX: 361 696 375C 400 MANN Si.. STE. 20( CORPUS CHRISTI. TEXAS 7840' EXHIBIT "F" CURB INLET DROP INLET GRATE INLET (TYP SANITARY MANHOLE CONCRETE GRATE INLET (TYP.) J` 47 +00 ( \D POH it ------+ N:17,184,130.56 0 E:1.338.014.83 2 N 11'05'12" W STA 46 +02.74 — 1.11•' 35' RIGHT ) RR SPIKE N 54•32'34' E 234.84' PARCEL FOUND 1 0.0200 AC. (672 SO. FT.) [:u£ rnm.Iv .... 23 1U49534 SET COTTON SPINDLE STUCCO BUILDING METAL FRAME BUILDINGS Po! i ..f Chr (No tln:ameniiiion S"ELL E US. ACREc N;. H OF CITY RAPRavEhiEN15 nh_'rne e 4E4 J.R.N.C..T.. METAL FRAME BUILDING BEARINGS ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, NAD83 (1993 ADJ.) SOUTH ZONE (4205). ALL DISTANCES ARE SURFACE AND MAY BE ADJUSTED TO GRID BY DIVIDING BY THE CONVERSION FACTOR OF 1.000001. THE DEDICATED RIGHT —OF —WAY WIDTH OF PORT AVENUE AS FOUND IN VARIOUS PUBLIC RECORDS, VARIES FROM SIXTY (60) FEET TO SEVENTY (70) FEET FROM HWY 37 TO U.S. HWY. 181. THE EXISTING PHYSICAL AS WELL AS FOUND MONUMENTATION SUPPORT THE WIDTH OF SEVENTY (70) FEET FOR THE ENTIRE LENGTH OF THIS PROJECT. AREA PARCEL 11= 872 SQUARE FEET. TCE DESIGNATES PROPOSED EASEMENTS, NO MONUMENTATION WILL BE SET FOR THE CORNERS. O = SET 5/8" IRON ROD WITH BLUE PLASTIC CAP STAMPED "MAVERICK ENGR., CORPUS CHRISTI, TX, BOUNDARY MARKER ", UNLESS OTHERWISE NOTED. 1, Rondi E. Evons, hereby certify thot the foregoing mop was pre•ored from o survey, mode on under direction and that it is tr di E. Evons, R.P.L.S. 5373 40 0 40 }2�' m,7SN A. 5373 t4-7 PA "CEL 1 LOCATION MAP NOT TO SCALE PARCEL 11 SURVEY PLAT TO ACCOMPANY METES & BOUNDS DESCRIPTION: MISCELLANEOUS ACRES NORTH OF CITY IMPROVEMENTS SHEET 1 OF 3 MENGINEERING, INC. MAVERIC'I< TEL: 361 696 3500 FAX: 361 696 3750 40D MANN ST.. STE. 200 CORPUS CHRISTI. TEXAS 78401 EXHIBIT "F" RR SPIKE Z 0. FOUND AO�, EXISTING - a' EXISTING \VP R.0. W. LINE R.O.W. LINE L= 277.181x, 80„ E-. SET COTTON R= 465.09' The. 'p SPINDLE i= 34'0912' \ C LEN = 273.09' '\ BRG =N 71'37'12" E '\ -- 48y.0p CONCRETE L= 276.58' R= 464.09' A =34'09 12' , C LEN = 272.51' BRG =S 71'37'12" W BUILOING PARCEL 11 0.0200 AC. (872 SO. FT.) • METAL FRAME BUILDINGS i'Cri. Gt GC ASPHALT 1.00' 35 57 RR SPIKE FOUND duiu,fi4i1 mi:i'. ACRES SET COTTON SPINDLE DRIVEWA 'H.. \\ BEARINGS ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, NAD83 (1993 ADJ.) SOUTH ZONE (4205). ALL DISTANCES ARE SURFACE AND MAY BE ADJUSTED TO GRID BY DIVIDING BY THE CONVERSION FACTOR OF 1.000001. THE DEDICATED RIGHT -OF -WAY WIDTH OF PORT AVENUE AS FOUND IN VARIOUS PUBLIC RECORDS. VARIES FROM SIXTY (60) FEET TO SEVENTY (70) FEET FROM HWY 37 TO U.S. HWY. 181. THE EXISTING PHYSICAL IMPROVEMENTS AS WELL AS FOUND MONUMENTATION SUPPORT THE WIDTH OF SEVENTY (70) FEET FOR THE ENTIRE LENGTH OF THIS PROJECT. AREA PARCEL 11= 872 SQUARE FEET. O = SET 5/8" IRON ROD WITH BLUE PLASTIC CAP STAMPED "MAVERICK ENGR., CORPUS CHRISTI, TX. BOUNDARY MARKER ". UNLESS OTHERWISE NOTED. 1, Rondi E. Evans, hereby certify that the foregoing mop was prepared from o survey, mode on the ground, under my direction and that it is true and correct. Rondi E. Evans, R.P.L.S. 5373 40 0 40 -476- PA'CEL 1 -\\\ \ \ LOCATION MAP NOT TO SCALE PARCEL 11 SURVEY PLAT TO ACCOMPANY METES & HOUNDS DESCRIPTION: MISCELLANEOUS ACRES NORTH OF CITY IMPROVEMENTS SHEET 2 OF 3 1e ENGINEERING, IN r. MAVERIC'IK TEL: 361 696 350( FAX: 361 696 3751 400 MANN 5T., STE. 20( CORPUS CHRISTI. TEXAS 7840 EXHIBIT "F" RR SPIKE \ \ SET COTTON FOUND '\ \ \ OL Yl$i' \ \ f4,f4'r ,SGT 3P ?o +s \ \ P (. •K GI, \ \ ASPHALT \ ^ \ GRATE INLET DRIVEWAY Y�\F, \ 1.00' `Q,, \ CHAIN LINK FENCE DRIVEWAY + \ s 86• \'\ BB• Tr j, 4, Srf 1. v04 P,� 8• F fro 4 0 ("));0 / -9• \ A• 0 BUILDING 0 490 .. ." !MFRG.10,47 TS mne1'.8. Pcc• 4 R.N.C. T. BEARINGS ARE BASED ON THE TEXAS STATE PLANE COORDINATE SYSTEM, NA083 (1993 ADJ.) SOUTH ZONE (4205). ALL DISTANCES ARE SURFACE AND MAY BE ADJUSTED TO GRID BY DIVIDING BY THE CONVERSION FACTOR OF 1.000001. THE DEDICATED RIGHT -OF -WAY WIDTH OF PORT AVENUE AS FOUND IN VARIOUS PUBLIC RECORDS, VARIES FROM SIXTY (60) FEET TO SEVENTY (70) FEET FROM HWY 37 TO U.S. HWY. 181. THE EXISTING PHYSICAL IMPROVEMENTS AS WELL AS FOUND MONUMENTATION SUPPORT THE WIDTH OF SEVENTY (70) FEET FOR THE ENTIRE LENGTH OF THIS PROJECT. AREA PARCEL 11= 872 SQUARE FEET. 0 = SET 5/8" IRON ROD WITH BLUE PLASTIC CAP STAMPED "MAVERICK ENGR., CORPUS CHRISTI, TX, BOUNDARY MARKER ", UNLESS OTHERWISE NOTED. 1, Rand; E. Evans, hereby certify that the foregoing map was prepared from a survey, mode on the ground, under my direction and that it is true and correct. Rondi E. Evans, R.P.L.S. 5373 50 0 50 1 cro477— rT, CQL PARCEL 11 0.0200 AC. (872 \6Q. FT.). J L \ lT4 S 46'18'12" E t41' ' LOCATION MAP NOT TO SCALE PARCEL 11 SURVEY PLAT TO ACCOMPANY METES & BOUNDS DESCRIPTION: MISCELLANEOUS ACRES NORTH OF CITY IMPROVEMENTS SHEET 3 OF 3 1MENGINEERING, INr. MAVERIC'K TEL: 361 696 3500 FAX: 361 696 3750 000 MANN ST.. STE. 200 CORPUS CHRISTI. TEXAS 78401 EXHIBIT "F" DEPARTMENT OF ENGINEERING SERVICES PROPERTY AND LAND ACQUISITION DIVISION New Broadway W WTP - Project #7293 — Parcel I Sanitary Sewer Easement THE STATE OF TEXAS § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § THAT the Port of Corpus Christi Authority of Nueces County, Texas, (GRANTOR) in consideration of TEN DOLLARS ($10.00) and other good and valuable consideration, paid to Grantor by the City of Corpus Christi (GRANTEE), a Texas Home Rule municipal corporation, of P. O. Box 9277, Corpus Christi, Nueces County, Texas, 78469 -9277 the receipt of which is hereby acknowledged, has conveyed, and does convey to the City of Corpus Christi, its successors and legal representatives the free and uninterrupted use, liberty, privilege, and easement of going in, on, over, under and along a certain tract of land situated in Nueces County, Texas and being described as follows: The tract of land is described by metes and bounds on the attached and incorporated as Exhibit "A" and shown on the attached map and incorporated as Exhibit `B ". (Premises). Together with the free ingress, egress and regress to and for the City of Corpus Christi, Texas, for the purpose of constructing, servicing, repairing, maintaining, inspecting, laying and keeping Sanitary Sewer lines under, on and along the Premises. TO HAVE AND TO HOLD, ALL AND SINGULAR, the rights and privileges aforesaid to the City of Corpus Christi, Texas, its successors and legal representatives, for use as a Sanitary Sewer Easement for so long as used for such purpose, and if the use of said easement is ever abandoned, then the aforesaid rights and privileges shall cease. Executed in duplicate, either copy of which constitutes an original. Grantor PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS John P. LaRue Executive Director —478— rvutnlT "G" THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2008 by. John P. LaRue, Executive Director of Port of Corpus Christi Authority ofNueces County, Texas on behalf of the Port. Notary Public in and for the State of Texas [Seal] ACCEPTED for the City of Corpus Christi, a municipal corporation and body politic under the laws of the State of Texas, on , 2008. Grantee CITY OF CORPUS CHRISTI, TEXAS P. O. Box 9277 City Hall, 1201 Leopard, THIRD FLOOR Department of Engineering Services PROPERTY AND LAND ACQUISITION DIVISION Corpus Christi, Texas 78469 -9277 Kevin Stowers, Interim Director Department of Engineering Services THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on , 2008 by Kevin Stowers as Interim Director of Engineering Services of the City of Corpus Christi, a Texas municipal corporation, on behalf of said corporation. [Seal] Notary Public in and for the State of Texas —479— • H:WOMEWDmmRIPROIECTW7293 Boardwav W WTP\Sanitary East-malodor EXHIBIT "n^ APPROVED AS TO LEGAL FORM, THIS By: DAY OF , 2008. FOR THE CITY ATTORNEY Veronica Ocahas, Assistant City Attorney CITY LEGAL DEPARTMENT —480— EXHIBIT "G" LNV ENGINEERING ENGINEERS S. CONSULTANTS 801 Navigation, Sults 300 Corpus Christi, Texas 78408 Phone[ (361) 8851984 Fax (361) 863.1986 30 Foot Sanitary Sewer Easement Field note description for a 30 foot wide Sanitary Sewer Easement out of Blocks 64, 65, 66 and 67, Beach Portion, a subdivision of the City of Corpus Christi, Texas recorded in Volume "A ", Page 2, Nueces County, Texas Map Records and out of that particular tract of land called Tract 9, recorded in Document No. 834521, Official Public Records, Nueces County, Texas, said 30 foot wide Sanitary Sewer Easement, being more particularly described by metes and bounds as follows: Beginning at a 518 inch iron rod set for corner in the east right -of -way line of 60 foot wide Sam Rankin Street for the southwest and beginning corner of the tract herein described, from whence the intersection of the east right -of -way line of said Sam Rankin Street and the north right -of -way line of 60 foot wide Resaca Street, bears South 11°-09'-23" East, a distance of 12.0 feet; Thence North 11 ° -09' -23" West, with the east right -of -way line of said Sam Rankin Street, a distance of 30.00 feet for the northwest corner of the tract herein described; Thence North 78°- 50' -37" East, with a line that is 42 feet northwest of and parallel to the northwest right of -way line of Reaaea Street, at 330 feet passed the centerline of Black Street, closed by City of Corpus Christi Ordinance No. 4176, at 690 feet passed the centerline of Zorra Street, closed by said City Ordinance No. 4176, at 1,050.0 feet passed the centerline of Oso Street, also closed by said City Ordinance No. 4176, in all, a distance of 1,235.00 feet for the Northeast comer of the tract herein described; Thence South 11 °- 09' -23" East, a distance of 30.00 feet for the southeast corner of the tract herein described from whence the intersection of the original north right -of -way line of 60 foot wide Resaca Street and the original west right -of -way line of Tancahua Street, bears North 78 °- 50' -37" East, a distance of 145.0 feet and South 11°-09'-23" East, a distance of 12.00 feet; Thence South 78 °- 50' -37" West, with the north line of said 12.0 feet Drainage Easement, a distance of 1,235.0 feet to the Point of Beginning. Containing 0.851 acre (37,050.0 square feet) of land. State of Tens County of Nueces 1, Horacio Oliveira, a Registered Professional Land Surveyor, of LNV ENGINEERING, Engineers & Consultants, do hereby certify that the foregoing Field Note Description was prepared from information of record and from a survey made on the ground under my direction, and that this description conforms to the current Texas Surveyor's Association Standards and Specifications for a Category 1 -A, Land Title Survey. This the 7''"t' day of d*rW- 2008. 4,174.0e4 Cated:tc. Horacio Oliveira State of Texas License No. 1415 -481- evui WT "fl" . . . . . 11:11 Pt I N !ea: I I r!iil� 8 1 : > SAM RANKIN ST .� - g y R4 I" dig 1!!! II I m BLACK ST 25 CLOSED crrr OLD. D. N N0. . 1176 76 � O CO 0 m1 K i D�eV7rt l ZORRA STn CLOSED BY UN ORD. NO. 4176 1 m m to m° ICI OSO ST y OSED BY CITY RD. NO. 4176 m V S- 11'- 09' -23' —E 30.0' 1 11 a N 60' 1 Ns 0°1 TANCAHUA ST -482- EXHIBIT "G J L NAVIGATIbN j s DISTRICT A. Sr ��! E ®1 may® 1111111111 !�(�� NM . ® AN iithIMMI NEWS tan cc M ® MICIMWW 0 INNW21111 11111W21111 1111170211111 111110211IE MOWAIIIE MSS an in . t• lift/WINISIMINETA Min CILMI oteNstil-sh , ft toe PQ • North %s of Resaca Street Containing 41,400 s.f. • - DISPOSAL. E'X E P 540-39-30 • '1 , I .I • ■Y. Ac Z22 7u 7092:1{'x1 o Sit/ Iffir Cr at .a.rn 546-€ H` aaaaa,ayafl r'_ L • Pte? 5l 1 i is 1 II Ai t I Y ■R 2. NMI etre POWER —483— • •NUECEIS COON EXHIBIT "H" 33 AGENDA MEMORANDUM AGENDA ITEM: December 16, 2008 Ordinance repealing Ordinance 026215, adopted on April 12, 2005, which loaned, approved the transfer as needed, and appropriated a total not to exceed $3,500,000 from the unreserved fund balance in the No. 3430 Wastewater CIP fund to the Sanitary Sewer Trunk System Trust Fund, to be repaid to the No. 3430 Wastewater CIP fund at an interest rate equal to the AAA rated 5 -year municipal bond rate on the date of the loan, to fund the shortfall resulting from pending applications to the Sanitary Sewer Trunk System Trust Fund; and amended the 2004/2005 CIP budget adopted by Ordinance #026188 to increase appropriations into the No. 3430 Wastewater CIP fund by $3,500,000; providing for severance; and declaring an emergency. ISSUE: During the City Council workshop held August 26, 2008, staff received direction to prepare council agenda action items to repeal the $3.5 million loan previously authorized by Ordinance No. 026215. RECOMMENDATION: Staff recommends approval of the ordinances as presented. t14-7,r� Robert Nix, A.I.C.P. Assistant City Manager for Development Services ATTACHMENTS: Exhibit A. Exhibit B Exhibit C Exhibit D Background Information Minutes of City Council Workshop of August 26, 2008 Copy of Ordinance No. 026215 Proposed Ordinance repealing Ordinance No. 026215 -487- AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: On August 26, 2008, a special City Council workshop was held. The workshop consisted of a staff presentation on historical performance of utility trust funds, and recommended modifications to current policies and procedures to ensure viability of these funds in the future. Other trust fund issues discussed included rescinding of a $3.5 million "loan" from the City's wastewater capital improvement program to the sanitary sewer trunk line trust fund previously authorized by City Council under Ordinance No. 026215; "refunding" the utility trust funds for the cost of two water arterial and transmission grid main reimbursement agreements totaling approximately $1.3 million; and also City participation in infrastructure costs associated with new development. The workshop also included a consultant presentation on development impact fees. During workshop discussion, staff was directed to prepare agenda action items amending the applicable City ordinances to modify trust fund related policies and procedures as recommended in the presentation. These recommendations included implementation of a "density factor' adjustment of development lot and acreage fees, a flat increase in existing lot and acreage fees by 15 percent, redistribution of revenue streams within the trust funds, and transfer of monies between the trust funds, in accordance with the Platting Ordinance. Staff was also directed to prepare action items to repeal the $3.5 million "loan" from the wastewater capital improvement program to the sanitary sewer trunk line trust fund, and to authorize the transfer of $1.3 million from the wastewater capital improvement program to the utility trust funds. Exhibit A Page 1 of 1 -488- PRESENT Mayor Henry Garrett Mayor Pro Tem Priscilla Leal* Council Members: Melody Cooper Larry Elizondo, Sr." Mike Hummel) Bill Kelly Michael McCutchon John Meru"' Nelda Martinez *Arrived at 9:19 a.m. "Arrived at 10:07 a.m. '"Arrived at 10:22 a.m. MINUTES CITY OF CORPUS CHRISTI, TEXAS Council Workshop August 26, 2008 — 8:53 a.m. City Staff. City Manager George K. Noe City Attomey Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the workshop meeting to order in the Council Chambers of City Hall. 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 workshop meeting. City Manager Noe announced that the focus of the workshop was to discuss the utility trust funds and the development of impact fees. Mr. Noe Introduced the presentation team as follows: Assistant City Manager of Development Services Robert Nix, Deputy Director of Development Services Johnny Perales, and President of Duncan Associates Jim Duncan. Mr. Perales referred to a powerpoint presentation on the utility trust funds including previous work and considerations; methodology and evaluation; history of the water arterial, water distribution, wastewater trunk, and wastewater collector funds; wastewater fund inter -fund transfer; impact of transfers to wastewater collection line trust fund from the wastewater trunk line trust fund; solutions recommended to increase wastewater trust fund viability; revenue components of combined wastewater funds; existing apportionment of revenues for wastewater trust funds; proposed re- apportionment of revenues for wastewater trust funds; wastewater collection line trust fund activity before and after connection surcharge re- apportionment; wastewater trunk line trust fund before and after connection surcharge re-apportionment; proposed revenue enhancements for the wastewater trunk line trust fund; density factors and the affects to the wastewater trunk line; expansion of concept to water trust funds; water distribution line trust fund activity before and after connection surcharge re- apportionment; water arterial line trust fund activity before and after connection surcharge re- apportionment and the density factor applied; staff recommendation; proposed platting ordinance language; and requested council action. The following topics pertaining to this item were discussed: the wastewater inter -fund transfers; whether there is a system in place to pay back the transfers; an evaluation to determine the viability of the wastewater fund; the review period for the funds; expenditures in the wastewater collector line trust fund; the lack of new wastewater activity; the impact for closing the fund on development; how long the fund has been reopened and the activity; the density factor; the proposed re- apportionment revenues in the wastewater trust fund; the impact if the fund had not been shut down; whether the density factor applied to wastewater will encourage urban sprawl and the impact on development; and whether the density factor only applies to the trunk line trust fund. —1— -489- EXHIBIT B Minutes — Council Workshop August 26, 2008 — Page 2 Dr. McCutchon made a motion directing staff to begin the formal adoption process for recommended ordinance amendments. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting 'Aye "; Cooper, Elizondo, and Marez were absent. City Manager Noe announced that the next section of the presentation dealt with the remaining trust fund issues. Mr. Pere les provided a presentation on the history of the $3.5 million "loan "; the current status of the loan, the trust fund balances as of July 31, 2008; recommended disposition of loan; and requested council action. The following topics pertaining to this item were discussed: whether the trust fund balances as of July 31, 2008 assume that the $3.5 million loan is transferred; the reason the loan transfer never occurred; the reason for the negative balance in the wastewater trunk line fund; whether the inter -fund transfers are reflected on the trust fund balances; whether there is a plan to pay back the $1.3 million transfer, repeal of the original loan; whether the development community expects the City to use CIP funds to pay for the London School and Rose Acres projects; requirements for lift stations and infrastructure; the reason the loan was appropriated and when; the state of the fund at the time the loan was approved; how the loan amount was determined; staff recommendation; and the distinction of developer funds. Dr. McCutchon made a motion directing staff to prepare an agenda item which will provide for the repeal of the $3.5 million loan of the previous ordinance, and a $1.3 million transfer of funds from the Wastewater CIP fund directly to the Sanitary Sewer Trunk Line Fund. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper and Marez were absent Mayor Garrett called for a brief recess to convene the regular Council meeting. Mayor Garrett returned to the workshop meeting at 10:18 a.m. to discuss the utility alternative financing study. Jim Duncan, Duncan Associates, referred to a powerpoint presentation including the consultant background; impact fee experience; the mission of the project; altemative financing methods; comparison with other Texas cities; current wastewater financing; trunk/collection line financing; wastewater financing issues; wastewater alternatives; wastewater recommendations; storm water financing issues; and storm water financing alternatives. The following topics pertaining to this item were discussed: the residential and commercial utility rate comparison; the plant being considered for the treatment plant expansion; whether the Allison plant can accommodate future growth; the anticipated timeframe to expand Allison; anticipated population growth near the Allison treatment plant recent utility rate increases; implementing wastewater impact fees; whether staff recommends proceeding with the consultant's recommendation on impact fees; the system used by other cities on wastewater impact fees; direction by previous council; and other alternatives. Dr. McCutchon made a motion directing staff to implement a wastewater impact fee and bring back a recommendation. The motion was seconded by Mr. Hummell. City Secretary Chapa polled the Council for their votes as follows: -2- 490- EXHIBIT B EXHIBIT B I Minutes — Council Workshop August 26, 2008 — Page 3 The foregoing motion failed with the following vote: Hummel), Leal, McCutchon, and Marez, voting "Aye "; Garrett, Elizondo, Kelly, and Martinez, voting "No "; Cooper was absent. Mr. Kelly made a motion directing staff to proceed with recommendations on how to fund wastewater treatment plant expansion, including impact fees or other alternatives, the effect on rate payers, and the impacts of the various approaches. The motion was seconded by Mr. Elizondo. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummel), Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. City Manager Noe announced that the final issue for discussion was the City contribution toward new infrastructure. Mr. Perales presented information including the current amount of contribution; the capital improvement program; treatment plant expansion; lift station and force main upgrades; trunk main extensions; positive and negative aspects; and requested Council action. The following topics pertaining to this item were discussed: whether infill lots would have impact fees; the plan to incorporate a development component; council control of expenditures for infrastructure; growth and redevelopment plan; Master Channel 31 reimbursement; whether staff will present a list of areas for directed growth as part of the plan; staff recommendation; whether the only funding method is CIP funds; the limitations established on CIP funding; other incentives for developing in a particular area; and evaluating the process in other communities. Mr. Kelly made a motion directing staff to develop a more detailed plan to incorporate a development component within future capital improvement programs as a part of a city directed growth and /or redevelopment incentive plan. The motion was seconded by Ms. Martinez and passed. City Secretary Chapa polled the Council for their votes as follows: The following motion was passed and approved with the following vote: Garrett, Elizondo, Kelly, McCutchon, Marez, and Martinez, voting "Aye"; Hummel) and Leal voting "No "; Cooper was absent. There being no further business to come before the Council, Mayor Garrett adjourned the council workshop at 11:20 a.m. on August 26, 2008. —3— —491— AN ORDINANCE APPROPRIATING A TOTAL NOT TO EXCEED $3,500,000 FROM THE UNRESERVED FUND BALANCE IN THE NO. 3430 WASTEWATER CIP FUND; LOANING AND APPROVING THE TRANSFER OF AMOUNTS AS NEEDED TO THE SANITARY SEWER TRUNK SYSTEM TRUST FUND, TO BE REPAID TO THE NO. 3430 WASTEWATER CIP FUND AT AN INTEREST RATE EQUAL TO THE AAA RATED 5 -YEAR MUNICIPAL BOND RATE ON THE DATE OF THE LOAN, TO FUND THE SHORTFALL RESULTING FROM PENDING APPLICATIONS TO THE SANITARY SEWER TRUNK SYSTEM TRUST FUND; AMENDING THE 2004/2005 CIP BUDGET ADOPTED BY ORDINANCE #026188 TO INCREASE APPROPRIATIONS INTO THE NO. 3430 WASTEWATER CIP FUND BY $3,500,000; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That a total not to exceed $3,500,000 from the Unreserved Fund balance in the No. 3430 Wastewater CIP Fund, is loaned and appropriated as needed into the Sanitary Sewer Trunk System Trust Fund, to be repaid to the No. 3430 Wastewater CIP Fund at an interest rate equal to the AAA rated 5 year municipal bond rate on the date of the loan, to fund the shortfall resulting from pending applications to the Sanitary Sewer Trunk System Trust Fund, and amending the 2004/2005 CIP Budget adopted by Ordinance #026188 to increase appropriations into the No. 3430 Wastewater CIP Fund by $3,500,000. 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 on this the 12th day of April, 2005. Armando Chapa City Secretary THE CITE' OF CORPUS CHRISTI Her> Garrett Mayor Approved as to form only: 4,1-i 1 , 2005 By: Joseph amey Assistant City Attorney For City Attomey Ord- Appro- SSTrst -Xfer 0462215 EXHIBIT C 2 Corpus Christi, Texas day of , 2005 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, i ti Henry arrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex A. Kinnison John E. Marez Jesse Noyola Mark Scott 4211-215 EXHIBIT C CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Finance of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officer that the money required for the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. City Council Action Date: April 12, 2005 Agenda item: Ordinance appropriating a total not to exceed $ 3,500,000.00 from the Unreserved Fund Balance in the No. 3430 Wastewater CIP Fund; loaning and approving the transfer of amounts as needed to and appropriating in the Sanitary Sewer Trunk System Trust Fund to be repaid to the No. 3430 Wastewater CIP Fund at an interest rate equal to the AAA Rated 5 -year Municipal Bond Rate on the date of the loan, to fund the shortage resulting from pending applications to the Sanitary Sewer Trunk System Trust Fund. Amount Required: $ 3,500,000.00 Fund Name Fund No. Org. No. Account No. Project No. Amount Wastewater CEP Fund 3430 00000 251850 3,500,000.00 Total 3,500,000.00 Certification not required La —494— Director of Financial Sery ces Date: :/ // Y1 us EXHIBIT C AN ORDINANCE REPEALING ORDINANCE 026215, ADOPTED ON APRIL 12, 2005, WHICH LOANED, APPROVED THE TRANSFER AS NEEDED, AND APPROPRIATED A TOTAL NOT TO EXCEED $3,500,000 FROM THE UNRESERVED FUND BALANCE IN THE NO. 3430 WASTEWATER CIP FUND TO THE SANITARY SEWER TRUNK SYSTEM TRUST FUND, TO BE REPAID TO THE NO. 3430 WASTEWATER CIP FUND AT AN INTEREST RATE EQUAL TO THE AAA RATED 5 -YEAR MUNICIPAL BOND RATE ON THE DATE OF THE LOAN, TO FUND THE SHORTFALL RESULTING FROM PENDING APPLICATIONS TO THE SANITARY SEWER TRUNK SYSTEM TRUST FUND; AND AMENDED THE 2004/2005 CIP BUDGET ADOPTED BY ORDINANCE #026188 TO INCREASE APPROPRIATIONS INTO THE NO. 3430 WASTEWATER CIP FUND BY $3,500,000; PROVIDING FOR SEVERANCE; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Ordinance 026215, adopted on April 12, 2005, which loaned and appropriated a total not to exceed $3,500,000 from the Unreserved Fund balance in the No. 3430 Wastewater CIP Fund as needed into the Sanitary Sewer Trunk System Trust Fund, to be repaid to the No. 3430 Wastewater CIP Fund at an interest rate equal to the MA rated 5 year municipal bond rate on the date of the loan, to fund the shortfall resulting from pending applications to the Sanitary Sewer Trunk System Trust Fund, and which amended the 2004/2005 CIP Budget adopted by Ordinance #026188 to increase appropriations into the No. 3430 Wastewater CIP Fund by $3,500,000, is repealed. 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. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure on this the day of , 2008. —495— ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED: This day of December, 2008: R. R a t As isttsta ity Attorney For City Attorney REPEAL ORD 026215 -- 12052008.DOC -496- 2 3 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 REPEAL ORD 026215 - 12052008.DOC —497— 34 AGENDA MEMORANDUM AGENDA ITEM: December 16, 2008 Ordinance appropriating and approving the transfer of $1,300,000 from the Unreserved Fund Balance in the No. 3430 Wastewater CIP Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements and declaring an emergency. ISSUE: During the City Council workshop held August 26, 2008, staff received direction to prepare council agenda action items to appropriate $1.3 million from the Wastewater CIP Fund No. 3430 to the Sanitary Sewer Trunk System Trust Fund. RECOMMENDATION: Staff recommends approval of the ordinances as presented. Robert Nix, A.I.C.P. Assistant City Manager for Development Services ATTACHMENTS: Exhibit A. Exhibit B Exhibit C Background Information Minutes of City Council Workshop of August 26, 2008 Proposed Ordinance -501- AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: On August 26, 2008, a special City Council workshop was held. The workshop consisted of a staff presentation on historical performance of utility trust funds, and recommended modifications to current policies and procedures to ensure viability of these funds in the future. Other trust fund issues discussed included rescinding of a $3.5 million "loan" from the City's wastewater capital improvement program to the sanitary sewer trunk line trust fund previously authorized by City Council under Ordinance No. 026215; 'refunding" the utility trust funds for the cost of two water arterial and transmission grid main reimbursement agreements totaling approximately $1.3 million; and also City participation in infrastructure costs associated with new development. The workshop also included a consultant presentation on development impact fees. During workshop discussion, staff was directed to prepare agenda action items amending the applicable City ordinances to modify trust fund related policies and procedures as recommended in the presentation. Staff was also directed to prepare action items to repeal the $3.5 million "loan" from the wastewater capital improvement program to the sanitary sewer trunk line trust fund, and to authorize the transfer of $1.3 million from the wastewater capital improvement program to the utility trust funds. This item provides for the $1.3 million fund transfer. Exhibit A Page 1 of 1 —502— 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 Council Workshop August 26, 2008 — 8:53 a.m. Citv Staff: City Manager George K. Noe City Attomey Mary Kay Fischer City Secretary Armando Chapa 'Arrived at 9:19 a.m. "Arrived at 10:07 a.m. "`Arrived at 10:22 a.m. Mayor Garrett called the workshop meeting to order in the Council Chambers of City Hall. 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 workshop meeting. City Manager Noe announced that the focus of the workshop was to discuss the utility trust funds and the development of impact fees. Mr. Noe introduced the presentation team as follows: Assistant City Manager of Development Services Robert Nix, Deputy Director of Development Services Johnny Perales, and President of Duncan Associates Jim Duncan. Mr. Perales referred to a powerpoint presentation on the utility trust funds including previous work and considerations; methodology and evaluation; history of the water arterial, water distribution, wastewater trunk, and wastewater collector funds; wastewater fund inter -fund transfer; impact of transfers to wastewater collection line trust fund from the wastewater trunk line trust fund; solutions recommended to increase wastewater trust fund viability revenue components of combined wastewater funds; existing apportionment of revenues for wastewater trust funds; proposed re- apportionment of revenues for wastewater trust funds; wastewater collection line trust fund activity before and after connection surcharge re- apportionment; wastewater trunk line trust fund before and after connection surcharge re- apportionment; proposed revenue enhancements for the wastewater trunk line trust fund; density factors and the affects to the wastewater trunk line; expansion of concept to water trust funds; water distribution line trust fund activity before and after connection surcharge re- apportionment; water arterial line trust fund activity before and after connection surcharge re- apportionment and the density factor applied; staff recommendation; proposed platting ordinance language; and requested council action. The following topics pertaining to this item were discussed: the wastewater inter -fund transfers; whether there is a system in place to pay back the transfers; an evaluation to determine the viability of the wastewater fund; the review period for the funds; expenditures in the wastewater collector line trust fund; the lack of new wastewater activity; the impact for closing the fund on development; how long the fund has been reopened and the activity; the density factor; the proposed re- apportionrent revenues in the wastewater trust fund; the impact if the fund had not been shut down; whether the density factor applied to wastewater will encourage urban sprawl and the impact on development; and whether the density factor only applies to the trunk line trust fund. -1- —503— EXHIBIT B Minutes — Council Workshop August 26, 2008 — Page 2 Dr. McCutchon made a motion directing staff to begin the formal adoption process for recommended ordinance amendments. The motion was seconded by Ms. Martinez. City Secretary Chaps polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. City Manager Noe announced that the next section of the presentation dealt with the remaining trust fund issues. Mr. Perales provided a presentation on the history of the $3.5 million "loan "; the current status of the loan, the trust fund balances as of July 31, 2008; recommended disposition of loan; and requested council action. The following topics pertaining to this item were discussed: whether the trust fund balances as of July 31, 2008 assume that the $3.5 million loan is transferred; the reason the loan transfer never occurred; the reason for the negative balance in the wastewater trunk line fund; whether the inter -fund transfers are reflected on the trust fund balances; whether there is a plan to pay back the $1.3 million transfer; repeal of the original loan; whether the development community expects the City to use CIP funds to pay for the London School and Rose Acres projects; requirements for lift stations and infrastructure; the reason the loan was appropriated and when; the state of the fund at the time the loan was approved; how the loan amount was determined; staff recommendation; and the distinction of developer funds. Dr. McCutchon made a motion directing staff to prepare an agenda item which will provide forthe repeal of the $3.5 million loan of the previous ordinance, and a $1.3 million transfer of funds from the Wastewater CIP fund directly to the Sanitary Sewer Trunk Line Fund. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper and Marez were absent. Mayor Garrett called for a brief recess to convene the regular Council meeting. Mayor Garrett returned to the workshop meeting at 10:18 a.m. to discuss the utility alternative financing study. Jim Duncan, Duncan Associates, referred to a powerpoint presentation including the consultant background; impact fee experience; the mission of the project; alternative financing methods; comparison with other Texas cities; current wastewater financing; trunk/collection line financing; wastewater financing issues; wastewater alternatives; wastewater recommendations; storm water financing issues; and storm water financing alternatives. The following topics pertaining to this item were discussed: the residential and commercial utility rate comparison; the plant being considered for the treatment plant expansion; whether the Allison plant can accommodate future growth; the anticipated timeframe to expand Allison; anticipated population growth near the Allison treatment plant; recent utility rate increases; implementing wastewater impact fees; whether staff recommends proceeding with the consultant's recommendation on impact fees; the system used by other cities on wastewater impact fees; direction by previous council; and other alternatives. Dr. McCutchon made a motion directing staff to implement a wastewater impact fee and bring back a recommendation. The motion was seconded by Mr. Hummell. City Secretary Chapa polled the Council for their votes as follows: -584- 'EXHIBIT B Minutes — Council Workshop August 26, 2008 — Page 3 The foregoing motion failed with the following vote: Rummell, Leal, McCutchon, and Marez, voting "Aye "; Garrett, Elizondo, Kelly, and Martinez, voting "No "; Cooper was absent. Mr. Kelly made a motion directing staff to proceed with recommendations on how to fund wastewater treatment plant expansion, including impact fees or other alternatives, the effect on rate payers, and the Impacts of the various approaches. The motion was seconded by Mr. Elizondo. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummel!, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. City Manager Noe announced that the final issue for discussion was the City contribution toward new infrastructure. Mr. Perales presented information including the current amount of contribution; the capital improvement program; treatment plant expansion; liftstation and force main upgrades; trunk main extensions; positive and negative aspects; and requested Council action. The following topics pertaining to this Item were discussed: whether infill lots would have impact fees; the plan to incorporate a development component; council control of expenditures for infrastructure; growth and redevelopment plan; Master Channel 31 reimbursement; whether staff will present a list of areas for directed growth as part of the plan; staff recommendation; whether the only funding method is CIP funds; the limitations established on CIP funding; other incentives for 4x developing in a particular area; and evaluating the process in other communities. Mr. Kelly made a motion directing staff to develop a more detailed plan to incorporate a development component within future capital improvement programs as a part of a city directed growth and/or redevelopment incentive plan. The motion was seconded by Ms. Martinez and . passed. City Secretary Chapa polled the Council for their votes as follows: The following motion was passed and approved with the following vote: Garrett, Elizondo, Kelly, McCutchon, Marez, and Martinez, voting "Aye'; Hummel/ and Leal voting "No'; Cooper was absent. There being no further business to come before the Council, Mayor Garrett adjourned the council workshop at 11:20 a.m. on August 26, 2008. —3— —505— EXHIBIT B ORDINANCE APPROPRIATING AND APPROVING THE TRANSFER OF $1,300,000 FROM THE UNRESERVED FUND BALANCE IN THE NO. 3430 WASTEWATER CIP FUND TO THE NO. 4220 SANITARY SEWER TRUNK SYSTEM TRUST FUND FOR DEVELOPER REIMBURSEMENTS AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $1,300,000.00 from the unreserved fund balance in the No. 3430 Wastewater CIP Trust Fund is appropriated for the transfer to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. 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 on this the day of , 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED: This _ day of December, 2008: R. Jay Reining First Assistant City Attorney For City Attorney Sanitary sewer trust fund appropord — 12052008.doc —506— 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Sanitary sewer trust fund appropord — 12052008.doc —507— 35 AGENDA MEMORANDUM AGENDA ITEM: December 16, 2008 a. Ordinance appropriating and approving the transfer of $700,000 from the unreserved fund balance in the No. 4030 Water Arterial Transmission and Grid Main Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements and declaring an emergency. b. Ordinance appropriating and approving the transfer of $600,000 from the unreserved fund balance in the No. 4030 Water Distribution Main Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements and declaring an emergency. C. Ordinance appropriating and approving the transfer of $350,000 from the unreserved fund . balance in the No. 4220 Sanitary Sewer Collection Line Trust Fund to the Sanitary Sewer Trunk System Trust Fund for developer reimbursements and declaring an emergency. ISSUE: During the City Council workshop held August 26, 2008, staff received direction to prepare council agenda action items to re- distribute monies in the utility trust funds as necessary to establish individual fund balances that are aligned with anticipated needs for the remainder of fiscal year 2008 -2009. RECOMMENDATION: Staff recommends approval of the ordinances as presented. matt Robert Nix, A.I.C.P. Assistant City Manager for Development Services ATTACHMENTS: Exhibit A. Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Background Information Minutes of City Council Workshop of August 26, 2008 Summary of Utility Trust Fund Balances and Anticipated Activity Proposed Ordinance appropriating $700,000 from the Water Arterial Transmission and Grid Main Trust Fund Proposed Ordinance appropriating $600,000 from the Water Distribution Main Trust Fund Proposed Ordinance appropriating $350,000 from the Sanitary Sewer Collection Line Trust Fund —511— AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: On August 26, 2008, a special City Council workshop was held. The workshop consisted of a staff presentation on historical performance of utility trust funds, and recommended modifications to current policies and procedures to ensure viability of these funds in the future. Other trust fund issues discussed included rescinding of a $3.5 million "loan" from the City's wastewater capital improvement program to the sanitary sewer trunk line trust fund previously authorized by City Council under Ordinance No. 026215; "refunding" the utility trust funds for the cost of two water arterial and transmission grid main reimbursement agreements totaling approximately $1.3 million; and also City participation in infrastructure costs associated with new development. The workshop also included a consultant presentation on development impact fees. During workshop discussion, staff was directed to prepare agenda action items amending the applicable City ordinances to modify trust fund related policies and procedures as recommended in the presentation. Staff was also directed to prepare action items to repeal the $3.5 million "loan" from the wastewater capital improvement program to the sanitary sewer trunk line trust fund, and to authorize the transfer of $1.3 million from the wastewater capital improvement program to the utility trust funds. This item provides for the redistribution of monies between the funds, as described in the Platting Ordinance, Sections V.B.5.h) and V.B.6.h). Exhibit A Page 1 of 1 —512— PRESENT Mayor Henry Garrett Mayor Pro Tem Priscilla Leal* Council Members: Melody Cooper Lany Eiizondo, Sr." Mike Rummell Bill Kelly Michael McCutchon John Mann*" Nelda Martinez *Arrived at 9:19 a.m. "Arrived at 10:07 a.m. '"Arrived at 10:22 a.m. MINUTES CITY OF CORPUS CHRISTI, TEXAS Council Workshop August 26, 2008 — 8:53 a.m. City Staff: City Manager George K. Noe City Attomey Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the workshop meeting to order in the Council Chambers of City Hall. 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 workshop meeting. City Manager Noe announced that the focus of the workshop was to discuss the utility trust funds and the development of impact fees. Mr. Noe Introduced the presentation team as follows: Assistant City Manager of Development Services Robert Nix, Deputy Director of Development Services Johnny Perales, and President of Duncan Associates Jim Duncan. Mr. Perales referred to a powerpoint presentation on the utility trust funds including previous work and considerations; methodology and evaluation; history of the water arterial, water distribution, wastewater trunk, and wastewater collector funds; wastewaterfund inter -fund transfer; impact of transfers to wastewater collection line trust fund from the wastewater trunk line trust fund; solutions recommended to increase wastewater trust fund viability; revenue components of combined wastewater funds; existing apportionment of revenues for wastewater trust funds; proposed re- apportionment of revenues for wastewater trust funds; wastewatercollection line trust fund activity before and after connection surcharge re- apportionment; wastewater trunk line trust fund before and after connection surcharge reapportionment; proposed revenue enhancements for the wastewater trunk line trust fund; density factors and the affects to the wastewater trunk line; expansion of concept to water trust funds; water distribution line trust fund activity before and after connection surcharge re- apportionment; water arterial line trust fund activity before and after connection surcharge re- apportionment and the density factor applied; staff recommendation; proposed platting ordinance language; and requested council action. The following topics pertaining to this item were discussed: the wastewater inter -fund transfers; whether there is a system in place to pay back the transfers; an evaluation to determine the viability of the wastewater fund; the review period for the funds; expenditures in the wastewater collector line trust fund; the lack of new wastewater activity; the impact for closing the fund on development; how long the fund has been reopened and the activity; the density factor; the proposed re- apportionment revenues in the wastewater trust fund; the impact if the fund had not been shut down; whether the density factor applied to wastewater will encourage urban sprawl and the impact on development; and whether the density factor only applies to the trunk line trust fund. -1- —513— EXHIBIT B Minutes — Council Workshop August 26, 2008 — Page 2 Dr. McCutchon made a motion directing staff to begin the formal adoption process for recommended ordinance amendments. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting °Aye "; Cooper, Elizondo, and Marez were absent. City Manager Noe announced that the next section of the presentation dealt with the remaining trust fund issues. Mr. Perales provided a presentation on the history of the $3.5 million loan "; the current status of the loan, the trust fund balances as of July 31, 2008; recommended disposition of loan; and requested council action. The following topics pertaining to this item were discussed: whether the trust fund balances as of July 31, 2008 assume that the $3.5 million loan is transferred; the reason the loan transfer never occurred; the reason for the negative balance in the wastewater trunk line fund; whether the inter -fund transfers are reflected on the trust fund balances; whether there is a plan to pay back the $1.3 million transfer; repeal of the original loan; whether the development community expects the City to use CIP funds to pay for the London School and Rose Acres projects; requirements for lift stations and infrastructure; the reason the loan was appropriated and when; the state of the fund at the time the loan was approved; how the loan amount was determined; staff recommendation; and the distinction of developer funds. Dr. McCutchon made a motion directing staff to prepare an agenda item which will provide for the repeal of the $3.5 million loan of the previous ordinance, and a $1.3 million transfer of funds from the Wastewater CIP fund directly to the Sanitary Sewer Trunk Line Fund. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, . Leal, McCutchon, and Martinez, voting "Aye "; Cooper and Marez were absent Mayor Garrett called for a brief recess to convene the regular Council meeting. Mayor Garrett returned to the workshop meeting at 10:18 a.m. to discuss the utility alternative financing study. Jim Duncan, Duncan Associates, referred to a powerpoint presentation including the consultant background; impact fee experience; the mission of the project; alternative financing methods; comparison with other Texas cities; current wastewater financing; trunk/collection line financing; wastewater financing issues; wastewater alternatives; wastewater recommendations; storm water financing issues; and storm water financing alternatives. The following topics pertaining to this item were discussed: the residential and commercial utility rate comparison; the plant being considered for the treatment plant expansion; whether the Allison plant can accommodate future growth; the anticipated timeframe to expand Allison; anticipated population growth near the Allison treatment plant; recent utility rate increases; implementing wastewater impact fees; whether staff recommends proceeding with the consultant's recommendation on impact fees; the system used by other cities on wastewater impact fees; direction by previous council; and other alternatives. Dr. McCutchon made a motion directing staff to implement a wastewater impact fee and bring back a recommendation. The motion was seconded by Mr. Hummell. City Secretary Chapa polled the Council for their votes as follows: 414- (EXHIBIT B Minutes — Council Workshop August 26, 2008 — Page 3 The foregoing motion failed with the following vote: Hummell, Leal, McCutchon, and Marez, voting "Aye "; Garrett, Elizondo, Kelly, and Martinez, voting "No "; Cooper was absent. Mr. Kelly made a motion directing staff to proceed with recommendations on how to fund wastewater treatment plant expansion, including impact fees or other alternatives, the effect on rate payers, and the impacts of the various approaches. The motion was seconded by Mr. Elizondo. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummel!, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. City Manager Noe announced that the final issue for discussion was the City contribution toward new infrastructure. Mr. Perales presented information including the current amount of contribution; the capital improvement program; treatment plant expansion; lift station and force main upgrades; trunk main extensions; positive and negative aspects; and requested Council action. The following topics pertaining to this Item were discussed: whether infdl lots would have impact fees; the plan to incorporate a development component; council control of expenditures for infrastructure; growth and redevelopment plan; Master Channel 31 reimbursement; whether staff will present a list of areas for directed growth as part of the plan; staff recommendation; whether the only funding method is CIP funds; the limitations established on CIP funding; other incentives for developing in a particular area; and evaluating the process in other communities. Mr. Kelly made a motion directing staff to develop a more detailed plan to incorporate a development component within future capital improvement programs as a part of a city directed growth and/or redevelopment incentive plan. The motion was seconded by Ms. Martinez and passed. City Secretary Chapa polled the Council for their votes as follows: The following motion was passed and approved with the following vote: Garrett, Elizondo, Kelly, McCutchon, Marez, and Martinez, voting "Aye" Hummeli and Leal voting 'No "; Cooper was absent. There being no further business to come before the Council, Mayor Garrett adjourned the council workshop at 11:20 a.m. on August 26, 2008. —3— —515— EXHIBIT B Utility Trust Activity & Balance Available, Aug 1, 2008 - July 31, 2009 Ordinance Date approved Preliminary Balance per G/L @ 7131108 (Nate: Balances shown include anticipated rescinding of 93.5 million loan from Wastewater CIP to Sanitary Sewer Trunk fund) Deposits @ 9/30/08 Reimbursements paid FV2009 Projects highlighted in yellow indicate 'approved agreements not yet completed', with remaining amounts to be paid Elizabeth &Third St (Spohn) NW Crossing Units 5,6 (Shaws Dev Jt Venture) Greenfieids by the Bay, South Fork Unk 5 (Springfield Development) CC Retirement Residence Addition Block 1 (CC Retirement Residence Limited Partnership) Legends of Diamante Unit 1 (JJAR Development, LP) Legends of Diamante Unit 1 (JJAR Development, LP) Legends of Diamante Unit 1 (JJAR Development, LP) Legends of Diamante Unit 1 (JJAR Development. LP) Rose Acres Subdivision (Nueces County) - Master Plan Lift Stn #13 (Oak Properties, Moses Meadow Subd) Amendment 1 to above (Mst Plan Lift Stn 13) Airline Crossing Unit 1(Al Development, Inc) pd 4/15/08 Amendment 1 to above (Aldine Crossing Unit 1) Airline Crossing Unit 1(Al Development, Inc) MER Subdivision (MER Investments, LLC) Tumstane Unit 1 (Oak Properties) Terra Mar (Hogan Homes) Los Arboles at Terra Mar Unit 2 (Baybreeze development, LP) PAID FROM ABOVE (FY2009) Rhew Industrial Tracts Unit 1 (Donald and Kathleen Klrchberg) Cabaniss Acres No2 Lot4 (AEP Central Texas Co.) Turner Industries, Block 1, Lot 1 (Turner Industries Group, LLC) Total Reimbursements 025892 8/17/2004 026619 1/24 /2006 028277 (repealed 5'242005(repeele 026787) d 523'06) 026308 6/21/2005 027301 6/12/2007 acreage fee credit 027307 6/19/2007 acreage fee credit 027086 12/19/2006 027113 027391 027198 027575 027327 027226 027243 027271 027461 027598, 027599, 027600 027692 330935 330937 21805 21806 Water Arterial Water Transmission & Distribution Grid Main Trust Main Trust 2090104030 2090204030 330931 21800 Sanitary Sewer Trunk System Trust 250410.4220 2,353, 821.15 1,127, 631.56 72,956.76 42,677.07 (14,104.00) (14.,-,q223.80) kcal (412,183.89) 1/16/2007 8/28/2007 3/27/2007 2/12/2008 (6,846.75) 7/10/2007 4/17/2007 4/24/2007 (212,051.81) 5/15/2007 (177,019.63) 10/30/2007 2/26/2008 5/13/2008 (27,074.80) (44,567.11) (5,720.91) (4,910.68) (28,218.75) 027759, 027760 7/15/2008 (319,025.32) Upcoming Council Action as directed in meeting of 8 -26 -08 Transfer from fund 3430 based on London ISD & Rose Acres Water reimbursements Approved loan from fund 3430 - to be rescinded 026215 4/12/2005 Balance available @ Sep 30, 2008 -516- (462,613.27) 75,858.48 (80,400.00) 330933 21801 Sanitary Sewer Collection Line Trust 2504204220 1,009,584.80 15,730.88 (70,740.88) (99,618.96) 27:2.Wi.iz,,,`..=�(ti5;21dj3 0.00 (125,602.41) (4,753.00) (41,003.03) (93,913.07) (257,884.97) (1,211,510.02) (44,437.23) (448,615.38) (325,300.94) 1,219,288.16 1 215 287.89 1 125 871.40 383 917.99 700,014.74 ORDINANCE APPROPRIATING AND APPROVING THE TRANSFER OF $700,000 FROM THE UNRESERVED FUND BALANCE IN THE NO. 4030 WATER ARTERIAL TRANSMISSION AND GRID MAIN FUND TO THE NO. 4220 SANITARY SEWER TRUNK SYSTEM TRUST FUND FOR DEVELOPER REIMBURSEMENTS AND DECLARING AN EMERGENCY WHEREAS, Sections V.B.5.h) and V.B.6.h), Platting Ordinance, require the City Council to review the fees and charges used to fund the utility infrastructure trust funds; WHEREAS, after a public hearing, the City Council may transfer monies from one trust fund to the other in order to better carry out the purposes of the Platting Ordinance; and WHEREAS, on Tuesday, December 16, 2008, during its regular meeting, the City Council held a public hearing on transferring funds from the No. 4030 Water Arterial Transmission and Grid Main Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund. WHEREAS, transferring funds from the No. 4030 Water Arterial Transmission and Grid Main Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund is required to help balance the funding available in the four utility trust funds; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $700,000.00 from the unreserved fund balance in the No. 4030 Water Arterial Transmission and Grid Main Trust Fund is appropriated for the transfer to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. 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 on this the day of , 2008. Water Arterial to Sanitary Sewer Trust Fund appropord — 12052008 —517— 2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: This rRday of December, 2008: Henry Garrett Mayor efniiT� First Assistant Ci Attorne tY Y For City Attorney R. Jay R Water Arterial to Sanitary Sewer Trust Fund appropord -- 12052008 —518— 3 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Water Arterial to Sanitary Sewer Trust Fund appropord — 12052008 —519— ORDINANCE APPROPRIATING AND APPROVING THE TRANSFER OF $600,000 FROM THE UNRESERVED FUND BALANCE IN THE NO. 4030 WATER DISTRIBUTION MAIN FUND TO THE NO. 4220 SANITARY SEWER TRUNK SYSTEM TRUST FUND FOR DEVELOPER REIMBURSEMENTS AND DECLARING AN EMERGENCY WHEREAS, Sections V.B.5.h) and V.B.6.h), Platting Ordinance, require the City Council to review the fees and charges used to fund the utility infrastructure trust funds; WHEREAS, after a public hearing, the City Council may transfer monies from one trust fund to the other in order to better carry out the purposes of the Platting Ordinance; and WHEREAS, on Tuesday, December 16, 2008, during its regular meeting, the City Council held a public hearing on transferring funds from the No. 4030 Water Distribution Main Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund. WHEREAS, transferring funds from the No. 4030 Water Distribution Main Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund is required to help balance the funding available in the four utility trust funds; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $600,000.00 from the unreserved fund balance in the No. 4030 Water Distribution Main Trust Fund is appropriated for the transfer to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. 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 on this the day of , 2008. Water Distribution to Sanitary Sewer Trust Fund appropord — 12052008 —520— 2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED: This O day of December, 2008: R. eining First Assistant City Attorney For City Attorney Water Distribution to Sanitary Sewer Trust Fund appropord — 12052008 —521— 3 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Water Distribution to Sanitary Sewer Trust Fund appropord — 12052008 —522— ORDINANCE APPROPRIATING AND APPROVING THE TRANSFER OF $350,000 FROM THE UNRESERVED FUND BALANCE IN THE NO. 4220 SANITARY SEWER COLLECTION LINE FUND TO THE NO. 4220 SANITARY SEWER TRUNK SYSTEM TRUST FUND FOR DEVELOPER REIMBURSEMENTS AND DECLARING AN EMERGENCY WHEREAS, Sections V.B.5.h) and V.B.6.h), Platting Ordinance, require the City Council to review the fees and charges used to fund the utility infrastructure trust funds; WHEREAS, after a public hearing, the City Council may transfer monies from one trust fund to the other in order to better carry out the purposes of the Platting Ordinance; and WHEREAS, on Tuesday, December 16, 2008, during its regular meeting, the City Council held a public hearing on transferring funds from the No. 4220 Sanitary Sewer Collection Line Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund. WHEREAS, transferring funds from the No. 4220 Sanitary Sewer Collection Line Trust Fund to the No. 4220 Sanitary Sewer Trunk System Trust Fund is required to help balance the funding available in the four utility trust funds; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $350,000.00 from the unreserved fund balance in the No. 4220 Sanitary Sewer Collection Line Trust Fund is appropriated for the transfer to the No. 4220 Sanitary Sewer Trunk System Trust Fund for developer reimbursements. 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 on this the day of , 2008. Sanitary Collection Line to Sanitary Sewer Trunk Trust Fund app2rro ord — 12082008 2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor y�f� APPROVED: This O day of December, 2008: R Rei ng rst As ' tant City Attorney For City Attorney Sanitary Collection Line to Sanitary Sewer Trunk Trust Fund appropord — 12082008 —524— 3 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 Sanitary Collection Line to Sanitary Sewer Trunk Trust Fund appropord — 12082008 36 AGENDA MEMORANDUM AGENDA ITEM: December 16, 2008 a. Public hearing and First Reading Ordinance amending the Platting Ordinance by adding Sections V.B.5.b)(13) and V.B.6.b)(13); revising Sections V.B.5.b)(1) and (2), V.B.5.e)(1) and (2), V.B.5.h), V.B.6.b)(1) and (2), V.B.6.e)(1) and (2), and V.B.6.h) by establishing density factors used to calculate lot and acreage fees, reassigning the distribution of surcharge fees, and changing the period for reviewing fees for the water and sanitary sewer trust funds; amending comprehensive plan; providing for repeal of conflicting ordinances; providing for severance; providing for penalties; and providing for publication. b. Public hearing and First Reading Ordinance amending Section 14 -1341, Platting Ordinance Fees, Code of Ordinances, City of Corpus Christi, to increase or establish fees related to platting; providing for severance; and providing for publication. ISSUE: During the City Council workshop held August 26, 2008, staff received direction to prepare council agenda action items to amend the City of Corpus Christi Platting Ordinance, providing for re- apportionment of connection surcharge fee revenues, providing for use of a density factor in calculation of lot and acreage fees associated with platting and new land development, and increasing the frequency of trust fund "audits" from bi- annual to annual. To complete this directive, it is also necessary to amend Platting Fees as included in Chapter 14, Article XIII, Section 14 -1341 of the City of Corpus Christi Code of Ordinances. RECOMMENDATION: Staff recommends approval of the ordinances as presented. Robert Nix, A.I.C.P. Assistant City Manager for Development Services ATTACHMENTS: Exhibit A. Exhibit B Exhibit C Exhibit D Background Information Minutes of City Council Workshop held August 26, 2008 Proposed Ordinance Amendment, Platting Ordinance Sections V.B.5 and V.B.6. Proposed Ordinance Amendment, Chapter 14, Article XIII, Section 14 -1341 —529— AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: On August 26, 2008, a special City Council workshop was held. The workshop consisted of a staff presentation on historical performance of utility trust funds, and recommended modifications to current policies and procedures to ensure viability of these funds in the future. Other trust fund issues discussed included rescinding of a $3.5 million "loan" from the City's wastewater capital improvement program to the sanitary sewer trunk line trust fund previously authorized by City Council under Ordinance No. 026215; "refunding" the utility trust funds for the cost of two water arterial and transmission grid main reimbursement agreements totaling approximately $1.3 million; and also City participation in infrastructure costs associated with new development. The workshop also included a consultant presentation on development impact fees. During workshop discussion, staff was directed to prepare agenda action items amending the applicable City ordinances to modify trust fund related policies and procedures as recommended in the presentation. These recommendations included implementation of a "density factor' adjustment of development lot and acreage fees, a flat increase in existing lot and acreage fees by 15 percent, redistribution of revenue streams within the trust funds, and transfer of monies between the trust funds, in accordance with the Platting Ordinance. Staff was also directed to prepare action items to repeal the $3.5 million "loan" from the wastewater capital improvement program to the sanitary sewer trunk line trust fund, and to authorize the transfer of $1.3 million from the wastewater capital improvement program to the utility trust funds. Exhibit A Page 1 of 1 -530- PRESENT Mayor Henry Garrett Mayor Pro Tem Priscilla Leal* Council Members: Melody Cooper Larry Elizondo, Sr." Mike Hummel) Bill Kelly Michael McCutchon John Marer Nelda Martinez `Arrived at 9:19 a.m. "Arrived at 10:07 a.m. "`Arrived at 10:22 a.m. MINUTES CITY OF CORPUS CHRISTI, TEXAS Council Workshop August 26, 2008 - 8:53 a.m. City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the workshop meeting to order in the Council Chambers of City Hall. 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 workshop meeting. City Manager Noe announced that the focus of the workshop was to discuss the utility trust funds and the development of impact fees. Mr. Noe introduced the presentation team as follows: Assistant City Manager of Development Services Robert Nix, Deputy Director of Development Services Johnny Pere les, and President of Duncan Associates Jim Duncan. Mr. Pere les referred to a powerpoint presentation on the utility trust funds including previous work and considerations; methodology and evaluation; history of the water arterial, water distribution, wastewater trunk, and wastewater collector funds; wastewaterfund interfund transfer; impact of transfers to wastewater collection line trust fund from the wastewater trunk line trust fund; solutions recommended to increase wastewater trust fund viability; revenue components of combined wastewater funds; existing apportionment of revenues for wastewater trust funds; proposed re- apportionment of revenues for wastewater trust funds; wastewater collection line trust fund activity before and after connection surcharge re- apportionment; wastewater trunk line trust fund before and after connection surcharge reapportionment; proposed revenue enhancements for the wastewater trunk line trust fund; density factors and the affects to the wastewater trunk line; expansion of concept to water trust funds; water distribution line trust fund activity before and after connection surcharge re- apportionment; water arterial line trust fund activity before and after connection surcharge re- apportionment and the density factor applied; staff recommendation; proposed platting ordinance language; and requested council action. The following topics pertaining to this item were discussed: the wastewater inter -fund transfers; whether there is a system in place to pay back the transfers; an evaluation to determine the viability of the wastewater fund; the review period for the funds; expenditures in the wastewater collector line trust fund; the lack of new wastewater activity; the impact for closing the fund on development; how long the fund has been reopened and the activity; the density factor; the proposed re- apportionment revenues in the wastewater trust fund; the impact if the fund had not been shut down; whether the density factor applied to wastewater will encourage urban sprawl and the impact on development; and whether the density factor only applies to the trunk line trust fund. -1- -531- EXHIBIT B Minutes - Council Workshop August 26, 2008 - Page 2 Dr. McCutchon made a motion directing staff to begin the formal adoption process for recommended ordinance amendments. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Hummel', Kelly, Leal, McCutchon, and Martinez, voting "Aye'; Cooper, Elizondo, and Marez were absent. City Manager Noe announced that the next section of the presentation dealt with the remaining trust fund issues. Mr. Pere les provided a presentation on the history of the $3.5 million "loan "; the current status of the loan, the trust fund balances as of July 31, 2008; recommended disposition of loan; and requested council action. The following topics pertaining to this item were discussed: whether the trust fund balances as of July 31, 2008 assume that the $3.5 million loan is transferred; the reason the loan transfer never occurred; the reason for the negative balance in the wastewater trunk line fund; whether the inter -fund transfers are reflected on the trust fund balances; whether there is a plan to pay back the $1.3 million transfer, repeal of the original loan; whether the development community expects the City to use CIP funds to pay for the London School and Rose Acres projects; requirements for lift stations and infrastructure; the reason the loan was appropriated and when; the state of the fund at the time the loan was approved; how the loan amount was determined; staff recommendation; and the distinction of developer funds. Dr. McCutchon made a motion directing staff to prepare an agenda item which will provide for the repeal of the $3.5 million loan of the previous ordinance, and a $1.3 million transfer of funds from the Wastewater CIP fund directly to the Sanitary Sewer Trunk Line Fund. The motion was seconded by Ms. Martinez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Rummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye'; Cooper and Marez were absent. Mayor Garrett called for a brief recess to convene the regular Council meeting. Mayor Garrett returned to the workshop meeting at 10:18 a.m. to discuss the utility alternative financing study. Jim Duncan, Duncan Associates, referred to a powerpoint presentation including the consultant background; impact fee experience; the mission of the project; alternative financing methods; comparison with other Texas cities; current wastewater financing; trunktcollection line financing; wastewater financing issues; wastewater alternatives; wastewater recommendations; storm water financing issues; and storm water financing alternatives. The following topics pertaining to this item were discussed: the residential and commercial utility rate comparison; the plant being considered for the treatment plant expansion; whether the Allison plant can accommodate future growth; the anticipated timeframe to expand Allison; anticipated population growth near the Allison treatment plant; recent utility rate increases; implementing wastewater impact fees; whether staff recommends proceeding with the consultant's recommendation on impact fees; the system used by other cities on wastewater impact fees; direction by previous council; and other alternatives. Dr. McCutchon made a motion directing staff to implement a wastewater impact fee and bring back a recommendation. The motion was seconded by Mr. Rummell. City Secretary Chapa polled the Council for their votes as follows: *2- 'EXHIBIT B I Minutes — Council Workshop August 26, 2008 — Page 3 The foregoing motion failed with the following vote: Hummel!, Leal, McCutchon, and Marez, voting "Aye "; Garrett, Elizondo, Kelly, and Martinez, voting "No "; Cooper was absent. Mr. Kelly made a motion directing staff to proceed with recommendations on how to fund wastewater treatment plant expansion, including impact fees or other alternatives, the effect on rate payers, and the impacts of the various approaches. The motion was seconded by Mr. Elizondo. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummel!, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. City Manager Noe announced that the final issue for discussion was the City contribution toward new infrastructure. Mr. Perales presented information including the current amount of contribution; the capital improvement program; treatment plant expansion; lift station and force main upgrades; trunk main extensions; positive and negative aspects; and requested Council action. The following topics pertaining to this item were discussed: whether infill lots would have impact fees; the plan to incorporate a development component; council control of expenditures for infrastructure; growth and redevelopment plan; Master Channel 31 reimbursement; whether staff will present a list of areas for directed growth as part of the plan; staff recommendation; whether the only funding method is CIP funds; the limitations established on CIP funding; other incentives for developing in a particular area; and evaluating the process in other communities. Mr. Kelly made a motion directing staff to develop a more detailed plan to incorporate a development component within future capital improvement programs as a part of a city directed growth and /or redevelopment incentive plan. The motion was seconded by Ms. Martinez and . passed. City Secretary Chapa polled the Council for their votes as follows: The following motion was passed and approved with the following vote: Garrett, Elizondo, Kelly, McCutchon, Marez, and Martinez, voting "Aye"; Hummel! and Leal voting "No "; Cooper was absent. There being no further business to come before the Council, Mayor Garrett adjourned the council workshop at 11:20 a.m. on August 26, 2008. —3— —533— EXHIBIT B Page 1 of 8 AN ORDINANCE AMENDING THE PLATTING ORDINANCE BY ADDING SECTIONS V.B.5.b)(13) AND V.B.6.b)(13); REVISING SECTIONS V.B.5.b)(1), (2), AND (5), V.B.5.e)(1) AND (2), V.B.5.h), V.B.6.b)(1), (2), AND (10), V.B.6.e)(1) AND (2), AND V.B.6.h) BY ESTABLISHING DENSITY FACTORS USED TO CALCULATE LOT AND ACREAGE FEES, REASSIGNING THE DISTRIBUTION OF SURCHARGE FEES, AND CHANGING THE PERIOD FOR REVIEWING FEES FOR THE WATER AND SANITARY SEWER TRUST FUNDS; AMENDING COMPREHENSIVE PLAN; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR SEVERENCE; PROVIDING FOR PENALTIES; AND PROVIDING FOR PUBLICATION. WHEREAS, the utility trust funds provided for in the Platting Ordinance provide a valuable and useful method of financing the extension of public water and wastewater facilities associated with new development; WHEREAS, Platting Ordinance also requires that these funds be reviewed on a regular basis to determine the adequacy of fees and charges toward maintaining the funds' solvency; WHEREAS, a review of the utility trust funds was completed in fiscal year 2008, and changes in fee structure and administrative procedures have been determined necessary to maintain viability of the funds; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, December 10, 2008, during a meeting of the Planning Commission, and on Tuesday, December 16, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the amendment of the Platting Ordinance of the City of Corpus Christi; WHEREAS, the City Council has determined that this amendment would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Section V.B.5.b) of the Platting Ordinance is amended by adding a new subdivision (13) to read as follows: Platting Ord Amend -- Sanitary Sewer Trust Fund -- 12052008.doc —534— Page 2 of 8 "V. B. 5. b) Definitions: "V. B. 5. b) (13) Density Factor: A factor based upon the maximum development density in units per acre allowed in each zoning district. The following table establishes the density factor for each zoning district, other than the F -R district. Zoning Maximum Densi Development Factor Densi R -E 1.00 1.00 R -1A 4.36 1.00 R-1B 7.26 1.00 R -1 C 9.68 1.33 PUD -2 9.68 1.33 R -2 14.52 2.00 A -1 21.78 3.00 A -2 36.30 5.00 AT 43.56 6.00 • B -1 36.30 2.00 B -2 36.30 2.00 B -3 36.30 2.00 B -4 36.30 2.00 B -5 36.30 2.00 1 -2 36.30 2.00 1 -3 36.30 2.00 Platting Ord Amend -- Sanitary Sewer Trust Fund - 12052008.doc -535- Page 3 of 8 SECTION 2. Sections V.B.5.b)(1), and V.B.5.b)(2), and V.B.5.b(5) of the Platting Ordinance are revised to read as follows: B. 5. b) Definitions: B. 5. b) (1) Lot Fee: The fee required to be paid by the developer based on the number of lots in the development. The current, which is the base lot fee (as is- published in the Development Services fee schedule, Article XIII, Chapter 14, Code of Ordinances) times the applicable density factor based on the zoning of the property zoning at the time of plat recordation. "V. B. 5. b) (2) Acreage Fee: The fee required to be paid by the developer based on the acreage in the development, including parks, streets, and drainage dedications- The - current , which is the base acreage fee (as is published in the Development Services fee schedule, Article XIII, Chapter 14,. Code of Ordinances) times the applicable density factor based on the zoning of the property zoning at the time of plat recordation. B. 5. b) (5) Pro-rata: A fee required to be paid by the developer as a front foot charge for the portion of water distribution main fronting the property that is required for the development, but installed by others. The current pro -rata fee is published in the Development Services fee schedule, Article XII, Chapter 14, Code of Ordinances." * * * * * SECTION 3. Sections V.B.5.e) of the Platting Ordinance is revised to read as follows: B. 5. e) The fees collected under this Section V.B.5. will be deposited into two separate trust accounts as follows: "V. B. 5. e) (1) Lot and acreage fees surolharge foes will be deposited into the Grid and Arterial Transmission Mains Trust Fund for use in oversizing grid mains, constructing arterial transmission mains and grid mains, and reimbursing developers for constructing arterial transmission or grid mains. Platting Ord Amend — Sanitary Sewer Trust Fund — 12052005.doc —536— Page 4 of 8 "V. B. 5. e) (2) Pro -rata fees for distribution mains and twenty -five the surcharge fees will be deposited into the Distribution Mains Trust Fund for use in oversizing distribution mains, constructing distribution mains, and reimbursing developers for oversizing and constructing distribution mains off -site. "V. B. 5. e) (3) Prior to the adoption of the City's annual budget, all fees and charges will be indexed to the Construction Index published in the Engineering News Record. "V. B. 5. e) (4) The Tap Fee Ordinance (City Code, Section 55 -70) separately establishes the applicable tap fee rates for installation of meters on service lines." SECTION 4. Section V.B.5.h) of the Platting Ordinance is revised to read as follows: B. 5. h) Once every-two -years year, the City Council shall review the adequacy of all fees and charges established herein and the sufficiency of the trust fund and may, after a public hearing, adopt a new schedule of fees and charges and /or transfer monies from one trust fund to the other in order to better carry out the purposes of this ordinance." SECTION 5. Section V.B.6.b) of the Platting Ordinance is amended by adding a new subdivision (13) to read as follows: "V. B. 6. b) Definitions: * "V. B. 6. b) (13) Density Factor: A factor based upon the maximum development density in units per acre allowed in each zoning district. The following table establishes the density factor for each zoning district, other than the F -R district. Zoning Maximum Density Development Factor Densi R -E 1.00 1.00 R -1A 4.36 1.00 R-1B 7.26 1.00 Platting Ord Amend -- Sanitary Sewer Trust Fund — 12052008.doc —537— Page 5 of 8 R-1C 9.68 1.33 PUD -2 9.68 1.33 R -2 14.52 2.00 A-1 21.78 3.00 A -2 36.30 5.00 AT 43.56 6.00 B -1 36.30 2.00 BB =2 36.30 2.00 B -3 36.30 2.00 B-4 36.30 2.00 B -5 36.30 2.00 1 -2 36.30 2.00 1 -3 36.30 2.00 SECTION 6. Sections V.B.6.b)(1), V.B.6.b)(2), and V.B.6.b)(10) of the Platting Ordinance are revised to read as follows: B. 6. b) Definitions: B. 6. b) (1) Lot Fee: The fee required to be paid by the developer based on the number of lots in the development. The current , which will be the base lot fee (as is- published in the Development Services fee schedule, Article XIII, Chapter 14, Code of Ordinances) times the applicable density factor based on the zoning of the property zoning at the time of plat recordation. "V. B. 6. b) (2) Acreage Fee: The fee required to be paid by the developer based on the acreage in the development, including parks, streets, and drainage dedications: The current acreage fee (as is- published in the Development Service fee schedule, Article XIII, Chapter 14, Code of Ordinances) times any Platting Ord Amend — Sanitary Sewer Trust Fund — 12052008.doc —538— V. Page 6 of 8 applicable density factors based on property zoning at the time of plat recordation." B. 6. b) (10) Pro -Rata Fee: A fee required to be paid by the developer as a front foot charge for the use of a sanitary sewer collection line, which serves property being platted or developed, but which was installed by others. The current pro -rata fee is published in the Development Services fee schedule, Article XII, Chapter 14, Code of Ordinances." SECTION 7. Section V.B.6.e) of the Platting Ordinance is revised to read as follows: B. 6. e) The fees collected under this Section V.B.6. will be deposited into two separate trust accounts as follows: "V. B. 6. e) (1) Lot and acreage fees eurcharge fees -will be deposited into the Sanitary Sewer Trunk System Trust Fund for use in constructing trunk lines, master plan lift stations, and trunk force mains, and reimbursing developers for constructing trunk - lines, master plan lift stations, and trunk force mains. "V. B. 6. e) (2) Pro -rata fees for collection lines and twenty-five-ape the surcharge fees will be deposited into the Collection Line Trust Fund for use in oversizing collection lines, constructing collection lines, and reimbursing developers for oversizing and constructing collection lines off -site. "V. B. 6. e) (3) Prior to the adoption of the City's annual budget, all fees and charges will be indexed to the Construction Index published in the Engineering News Record. "V. B. 6. e) (4) The Tap Fee Ordinance (City Code, Section 55 -70) separately establishes the applicable tap fee rates for installation of meters on service lines." SECTION 8. Section V.B.6.h) of the Platting Ordinance is revised to read as follows: B. 6. h) Once every-twe -years year, the City Council shall review the adequacy of all fees and charges established herein and the sufficiency of the trust funds, and may, after a public hearing, Platting Ord Amend — Sanitary Sewer Trust Fund -- 12052008.doc —539— Page 7 of 8 adopt a new schedule of fees and charges and /or transfer monies from one trust fund to the other in order to better carry out the purposes of this ordinance? SECTION 9. That the Platting Ordinance, approved on the 23rd day of March, 1955, as amended from time to time, except as changed by this ordinance and any other ordinances adopted on this date, remains in full force and effect. SECTION 10. That to the extent that this amendment to the Platting Ordinance represents a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the Platting Ordinance, as amended by this ordinance. SECTION 11. That any ordinance or part of any ordinance in conflict with this ordinance is expressly repealed by this ordinance. SECTION 12. 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 13. A violation of this ordinance or requirements implemented under this ordinance constitutes an offense punishable under Section XI.A. of the Platting Ordinance. SECTION 14. 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. Platting Ord Amend — Sanitary Sewer Trust Fund — 12052008.doc —540— Page 8 of 8 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 Melody Cooper Larry Elizondo, Sr. Mike Hurnmell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon 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 Larry Elizondo, Sr. Mike Hummel) Bill Kelly PASSED AND APPROVED, this the ATTEST: John E. Marez Nelda Martinez Michael McCutchon day of 2008. Armando Chapa Henry Garrett City Secretary Mayor APPROVED: 0 day of December, 2008: R. Jay Rg}rfing First As istant City Attorney For City Attorney Platting Ord Amend -- Sanitary Sewer Trust Fund — 12052008.doc —541— AN ORDINANCE AMENDING SECTION 14 -1341, THE CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, REGARDING THE ADDITION OF A DENSITY FACTOR TO LOT AND ACREAGE FEES FOR WATER AND WASTEWATER INFRASTRUCTURE; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. WHEREAS, Sections V.B.5.h) and V.B.6.h), Platting Ordinance, require the City Council to review the fees and charges used to fund the utility infrastructure trust funds; WHEREAS, on Tuesday, December 16, 2008, during its regular meeting, the City Council held a public hearing on increasing the lot and acreage fees for the infrastructure trust funds; WHEREAS, increasing the lot and acreage fees for the infrastructure trust funds is required to help balance the funding available in the four utility trust funds; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Section 14 -1341, Code of Ordinances, is amended by revising the portions of the table applicable to Infrastructure Trust Fund Lot & Acreage Fees, to read as follows: "Sec. 14 -1341. Platting ordinance fees. "This division sets the amounts of the fees required by the platting ordinance. PLATTING ORDINANCE FEES AMOUNT OF FEE * , * * * * Infrastructure Trust Fund Lot & Acreage Fees Base lot Let -fee for water infrastructure $330 -00 $379.00 Base acreage Acreage -fee for water $4432,00 infrastructure $1,520.00 Surcharge for water infrastructure $0.00 Base lot Let -fee for water infrastructure for $167.00 single - family or duplex $192.00 Platting Fee Ord Amend -- 12052008.DOC —542— 2 Base acreage Acreage fee for water $66000 $759.00 infrastructure for single - family or duplex Surcharge for water infrastructure for single - family or duplex $223.00 Water distribution line front foot pro rata fee $9.67 PIIC water tap fee $480.00 PIIC lot fee for water infrastructure $480.00 PIIC acreage fee for water infrastructure $1,200.00 Base lot fee for wastewater $360:99 $414.00 infrastructure Base acreage Acreage fee for wastewater $17443 infrastructure 700 $1,659.00 Surcharge for wastewater infrastructure $254.00 Collection line front foot pro rata fee $11.19 Lot fee for storm water infrastructure $0.00 Acreage fee for storm water infrastructure $0.00 Surcharge for storm water infrastructure $0.00 Front foot pro rata charge $0.00 Request for lot/acreage fee exemption determination $60.00 Reimbursement agreement $535.00 Recording fees City's actual costs 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. PLATTING FEE ORD AMEND - 12052008.DOC —543— 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. PLATTING FEE ORD AMEND - 12052008.DOC —544— 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 Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon 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 Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly PASSED AND APPROVED, this the ATTEST: Armando Chapa City Secretary APPROVED: Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon day of , 2008. day of December, 2008: R. Ja 'ei -mg Firs As ' tant Attorney For City Attorney PLATTING FEE ORD AMEND - 12052008.DOC —545— 4 Henry Garrett Mayor 37 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: A. Presentation on the issuance of municipal bonds. B. Resolution approving a Debt Management Policy for the City of Corpus Christi. ISSUE: Intrinsic to the maintenance and growth of municipalities is the need to finance the construction or acquisition of infrastructure and other assets. The presentation on the issuance of municipal bonds is designed to provide a basic overview on the various aspects in issuing municipal bonds and to summarize the topics contained in the Debt Management Policy. The Debt Management Policy was originally approved by the City Council on December 11, 2007. This policy was developed to address the methods, procedures, and practices to be utilized for issuance of debt to ensure effective and judicious fiscal management of City funds. City staff has reviewed the policy and is submitting minor amendments for the City Council's consideration. PRIOR COUNCIL ACTION: December 11, 2007 — City Council approved Resolution 027526 adopting the City of Corpus Christi's Debt Management Policy. REQUIRED COUNCIL ACTION: Approval of the Resolution. CONCLUSION AND RECOMMENDATION: City staff recommends approval of the Resolution as presented. Constance P. Sanchez Attachment: Interim Director of Financial Services Background Debt Management Policy Resolution —549— BACKGROUND In order to provide guidance regarding the issuance, management, continuing evaluation and reporting on all debt obligations issued by the City, the City Council approved Resolution 027526 on December 11, 2007, adopting a "Debt Management Policy". The Debt Management Policy applies to all long -term debt securities issued by the City for these purposes, as well as to the refinancing of existing debt. Since the Texas Local Government Code provides that each member of the City Council has a fiduciary responsibility in the management of the City's indebtedness, the presentation and policy aim to document the procedures that City staff currently performs in reference to the issuance of debt and addresses additional concepts that the City may consider in the future. The following is a summary of the recommended changes to the Debt Management Policy: 1. Section 1.1: Purpose — A phrase is added to denote that the City Manager charges the Director of Financial Services with the responsibility to manage the City's debt. 2. Section 2.2: Scope — Tax notes and bank notes were added to the example of the different types of debt that the City can issue. 3. Section 4.5: Bond Insurer — A sentence was added to the end of this section indicating that bond insurance will only be utilized when it is economically feasible. Historically, the City has purchased bond insurance because the bond insurers have had a higher rating than the City. They have all been AAA rated, which means that if the City utilizes their rates, then a lower interest rate would be paid. However, all but one bond insurer have been downgraded by the rating agencies (i.e. Standard and Poor's, Fitch, and Moody's) making it less advantageous for the City to secure bond insurance. 4. Section 7.3: Debt Limits — The last sentence in this section was shortened to say that the City strives to meet and achieve standards that are generally accepted including debt per capita; debt as a percent of statutory debt limit, debt as a percent of appraised valuation; debt service payments as a percent of governmental expenditures; or level of overlapping net debt of all local taxing jurisdictions. 5. Section 8.1: Fund Balance Requirement — This section was expanded to site the specific section of the Treasury Regulations that addresses reserve funds. 6. Section 10.2: Refunding of Debt — A statement was added to allow the City to issue refunding bonds for a period beyond the original maturity date. As a practice when the City has refunded bonds in the past, the new refunding bonds had the same maturity dates. This statement was added as a precautionary measure that would allow the City to extend the maturity dates if economically practicable. 7. Section 16.3.6: Capital Improvement Program — Reference was added to elaborate that the Comprehensive Improvement Program must first be presented to the Planning Commission as per City Charter, Article V- Planning; Section 4 -The Comprehensive Plan, prior to being submitted to the City Council for adoptiopf.l _ RESOLUTION APPROVING A DEBT MANAGEMENT POLICY FOR THE CITY OF CORPUS CHRISTI WHEREAS, the City of Corpus Christi Debt Management Policy was adopted in Resolution No. 027526 on December 11, 2007; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Corpus Christi City Council has reviewed and adopts the City of Corpus Christi Debt Management Policy as amended. A copy of the amended Debt Management Policy is attached. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: December 5, 2008. Lisa Aguilar, Assistant City Attorney for the City Attorney Henry Garrett Mayor HALEG- DIR\Lisa\2008 Resolutions\Debt Management Pofic,5dyQ- 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 —553— City of Corpus Christi CITY OF CORPUS CHRISTI, TEXAS FINANCIAL SERVICES corpuschdsti M4a laab '1111' DEBT MANAGEMENT POLICY Dcccmber f 2007 December 16, 2008 -554- DEBT MANAGEMENT POLICY Table of Contents Section Title Page 1. Purpose and Objectives 1 2. Scope 2 3. Roles and Responsibilities 2 4. Selection of Service Providers 3 5. Use of Debt Instruments 6 6. Structure and Type of Debt 6 7. Debt Limits 10 8. Fund Balance Requirements 11 9. Methods of Sale 12 10. Refunding of Debt 15 11. Variable Rate Exposure 16 12. Interest Rate Swap Agreements 13. Continuing Disclosure 14. Investment of Debt Proceeds 15. Arbitrage 16. Capital Improvement Project 17. Public Input on Capital Improvement Needs 18. Definitions —55 i 5— 16 17 17 18 19 20 21 City Corpus Christi Section 1 Corpuschristi Debt Management Policy III'x PURPOSE AND OBJECTIVES 1.1 Purpose The City Manager for the City of Corpus Christi (the "City "), working through the Director of Financial Services, for the City of Corpus Christi (the "City") is charged with the responsibility for prudently and properly managing any and all debt incurred by the City. The following policy provides the methods, procedures, policies and practices which, when exercised, ensure the sound fiscal management of the City's debt program. All City offices and departments must comply with the guidelines and procedures set forth in this policy. The purpose of this policy is to provide guidance regarding the issuance, management, continuing evaluation and reporting on all debt obligations issued by the City. The Corpus Christi City Council recognizes there are no absolute rules or easy formulas that can substitute for a thorough review of all information affecting the City's debt position. Debt decisions should be the result of deliberative consideration of all factors involved. This policy is intended to augment the deliberation process by addressing the methods, procedures, and practices to be utilized to ensure effective and judicious fiscal management of City funds. The terms of this Debt Management Policy (the "Policy ") are intended to comply with all federal and state laws governing debt, including, but not limited to, Texas law, Internal Revenue Service rules and regulations, United States Securities and Exchange Commission (SEC) regulations, Municipal Securities Rulemaking Board (MSRB) regulations, court rulings, and existing City debt covenants and City of Corpus Christi Charter provisions. 1.2 Objectives Debt Management shall be conducted with the primary objectives of: 1 —556— * Maintaining or enhancing the City's existing credit rating for all categories of short and long -term debt, consistent with the financial policies and bond covenants approved by the City Council; * Maintaining access to capital; * Minimizing borrowing costs; and * Maximizing financial flexibility. Section 2 SCOPE 2.1 This Policy shall govern debt obligations issued by the City that finance the construction or acquisition of infrastructure and other assets or to refinance existing debt. The City may also desire to issue debt obligations on behalf of external agencies, non - profit corporations, or other authorities for the purpose of construction or acquisition of infrastructure or other assets that further the goals and objectives of City government. In that case, the City shall take reasonable steps to confirm the financial feasibility of the project and the financing solvency of any necessary borrower; and shall take all reasonable precautions to ensure the public purpose and financial viability of such transactions. 2.2 This policy applies to all short-term and long -term debt securities issued by the City. This may include general obligation bonds, certificates of obligation, revenue bonds, commercial paper, long -term capital leases, certificates of participation, tax notes bank notes, equipment notes, private placements, and letters of credit. Section 3 ROLES AND RESPONSIBILITIES 3.1 All debt programs will be made in accordance with applicable federal and state regulations. The City Council will approve the issuance of all City bond indebtedness. 3.2 The Director of Financial Services has the primary responsibility for making debt - financing recommendations to the City Council and has responsibility for the appropriate management of the City's debt program. 3.3 The Director of Financial Services, or the designee thereof, will coordinate all activities necessary to issue debt, including, but not limited to: • Selection of financial advisor and bond counsel; • Verifying compliance with City Charter; • Review of ordinances and resolutions prepared by bond counsel; • Review of all documents necessary to issue debt prepared by bond counsel; • Review of offering memoranda provided by financial advisors; and —55Z7— • Review of all related financial analyses. 3.4 The Director of Financial Services, or the designee thereof, will provide no less often than annually to the City Council: a. An annual debt issuance schedule for capital projects (included in the operating budget); b. An updated ten -year capital improvement plan (included in the capital budget); c. Certification that the City is current on all debt service payments; d. Disclosure of any payment defaults since the prior report was made to the City Council; and e. Disclosure of any other bond covenant violations or defaults since the prior report was made to the City Council of which the Director of Financial Services has actual knowledge. 3.5 The Capital Budget Officer, or the designee thereof, will facilitate implementation and oversee the Capital Improvement Plan for City offices and departments pursuant to Section 16 of this policy. 3.6 The Director of Financial Services, or the designee thereof, will recommend to the City Council a financing team consisting of bond counsel, financial advisor, and underwriters, to the extent required for each bond issue. 3.7 The Office of Management and Budget is responsible for reporting quarterly in its financial report a schedule that includes outstanding debt requirements as well as commercial paper activity and capital lease activity. These reports will include principal and interest requirements, dates for each, and related interest rates. 3.8 The City Treasurer is responsible for assuring that all debt service payments are made in a timely manner to the appropriate paying agents for the obligations issued by the City. 3.9 The Office of the Director of Financial Services is responsible for preparing and submitting the annual continuing disclosure pursuant to SEC Rule 15c -12. 3.10 The City departments administering projects financed with debt funding are responsible for complying with Section 16 of this Policy. Section 4 SELECTION OF SERVICE PROVIDERS 4.1 Financial Advisors 3 —558— The Director of Financial Services provides recommendations for the selection of a financial advisor for the City of Corpus Christi's debt program. The financial advisor will have comprehensive municipal debt knowledge and experience and may perform the following duties including but not limited to: comprehensive analyses of debt refinancing, recommendations for alternative financial structures; development of timing and sale of new issues; recommending whether the sale of the new issues be through a competitive bid sale, negotiated sale, or private placement; coordinating the market pricing of debt securities; issuing and disseminating the bond offering document and other disclosure requirements; coordinating with the underwriters of the bond issuance if the bonds are sold through a negotiated sale; seeking and obtaining ratings from the three major bond rating agencies; and providing guidance and advice about debt - related topics, as needed. Due to the complex nature of the City's debt portfolio, it is important for the City to maintain continuity with a financial advisor who is familiar with the City's history in issuing bonds. The City reserves the right, however, to conduct a formal request for proposal or request for qualifications process. 4.2 Bond Counsel The Director of Financial Services coordinates with the City Attorney, the Assistant City Manager for Administrative Services, and the City Manager on the selection of bond counsel for all debt issues. Bond counsel will have comprehensive municipal debt knowledge and experience. When the bond counsel has been selected, they are responsible for providing an opinion to investors in two specific areas. The bond counsel must opine to investors that the securities are valid and legally binding obligations of the issuer. Then, the bond counsel will opine on whether the interest on the bonds is exempt from federal taxation. The bond counsel also prepares all bond documents necessary to execute the bond issuance. The bond counsel is responsible for coordinating with the City Attorney's office, City Secretary's office, and Financial Services, as well as the City's financial advisor, to ensure that all tasks associated with the bond issuance are completed within prescribed timeframes. To the extent required by State law, bond counsel is responsible for coordinating with the Office of the Attorney General and the Office of the Comptroller of Public Accounts of the State of Texas matters relating to the approval of City obligations. The City values continuity in maintaining a relationship with bond counsel due to the complexity of issues and laws related in issuing municipal bonds. However, the City reserves the right to conduct a formal request for proposal or request for qualifications process. 4.3 Paying Agent/Registrar The City's financial advisor may conduct a request for proposal process to select the paying agent/registrar for each new issue and recommends the successful candidate for approval by City Staff. The successful candidate may not necessarily be the proposer with the lowest cost. A "best value" approach is utilized in the selection. 4 —559— 4.4 Underwriters In a negotiated sale (see Section 9 - Methods of Sale), the Director of Financial Services, after review with the Assistant City Manager for Administrative Services, the City Manager, and the Financial Advisor makes recommendations about which underwriting firms to include in the underwriting syndicate. The City issues Requests for Qualification (RFQ) approximately every three years to obtain an approved list of underwriters which is broken -out by sections: national scope, banking institutions, regional scope, and "historically underutilized business" ( "HUB ") status. A diverse group of securities firms will be chosen based on past performance, demonstrated ability to resell, prior municipal issuance experience, and other factors including, without limitation, participation in bidding on competitive bond sales conducted by the City. While past demonstrated performance is the primary criteria for selection within those criteria, the participation of firms with a HUB status will be strongly encouraged. 4.5 Bond Insurer Credit quality and marketability of securities may be enhanced through the purchase of municipal bond insurance. The City pays a single premium and in turn, the bond insurer unconditionally guarantees the payment of principal and interest to the bondholders in case of a payment default. Prior to purchasing municipal bond insurance for an issue, the fmancial advisor will perform an analysis to determine the cost benefits to the City derived from obtaining municipal bond insurance. Bond insurance will only be utilized when it is economically feasible. 4.6 Bond Rating Agency Application Prior to issuing new debt or to issuing refunding debt, the City will submit a rating application to at least two of the largest rating agencies, which, as of the date this Policy became effective, are: Fitch Ratings, Moody's Investor Services, and Standard & Poor's Rating Services. 4.7 Bond Rating/Bond Insurers' Presentation As often as deemed necessary, City staff and/or elected officials will either make a bond rating presentation directly to the analysts of the three largest rating agencies and/or the bond insurance companies, will hold conference call interviews with each of these entities, or will invite each of the rating agencies and/or bond insurers to make a site visit to the City. For the presentation, staff compiles information relevant to the City's current economy, financial condition, and current initiatives to provide reference material for the rating agencies and bond insurers. When issues occur frequently, the rating agency application and offering document will be supplemented by a minimum of a written presentation of updated information about the City since the last rating application. 5 —560— The City distributes the Comprehensive Annual Financial Report (CAFR) and the current operating and capital budgets to each of the three bond rating agencies, as well as to bond insurance companies. Financial information about the City is available on the City's website: http: / /www.cctexas.com Section 5 USE OF DEBT INSTRUMENTS 5.1 Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. The City will use debt financing only for one -time capital improvement projects and equipment purchases under the following circumstances: a. The project is included in the City's capital improvement plan budget; b. The project is a result of growth - related activities within the community that require unanticipated and unplanned infrastructure or capital improvements by the City; c. The project's useful life will be equal to or exceed the term of the financing; d. The equipment has an expected useful life of at least the term of financing; and/or e. There are revenues sufficient to service the debt, whether from future property taxes, user fees, or other specified and reserved resources. Section 6 STRUCTURE AND TYPE OF DEBT 6.1 Debt service will be structured to match projected cash flows, minimize the impact of future property tax levies, and maintain a relatively rapid payment of principal. 6.2 The term of the debt issuance should equal the lesser of the useful life of the asset being financed or the maximum maturity permitted by State law for the obligations issued to finance the acquisition and construction of the asset. 6.3 The types of debt instruments to be issued by the City include: a. General Obligation Bonds - The City issues general obligation bonds for general purpose capital improvements when benefits accrue to the entire community. General obligation bonds are also used when the expectation of the project is that it will not generate significant revenues. 6 —561— The City pledges its "full faith and credit" and levies an ad valorem tax to repay the debt, consistent with State law and the City's Charter. In order to issue general obligation bonds, the eligible voters of the City must authorize the amount to be issued through a popular referendum held for such purpose. The general obligation bonds are sold for a term no greater than the useful life of the project that is being funded through the issuance of the general obligation bonds. b. Certificates of Obligation — Under State law, the City has the opportunity to issue certificates of obligation. Although voter approval is not required, additional notification and public hearing requirements may apply, to the extent so provided by applicable State law. Certificates of obligation may be secured by a combination of ad valorem taxes and revenues from a source that the City is authorized by State law to encumber for a public purpose, e.g., solid waste. Certificates of obligation are often issued to finance projects in cases where user fees charged for the use of the projects financed are pledged to repay the certificates of obligation. Examples include: Solid Waste, Marina, Hotel Occupancy Tax, etc. Certificates of obligation are available for governments when the improvements being sought are necessary for the health, safety and welfare of the government's citizens, in circumstances where cost overruns on a general obligation bond - financed capital improvement may have occurred, or where financial opportunities unexpectedly arise to leverage funds from other entities and reduce the City's capital cost for a community improvement. Also, certificates of obligation may be issued where the timing of the construction of a capital improvement and the expense of calling a bond election for a single proposition would, in the opinion of City staff and with the approval of the City Council, warrant the issuance of certificates of obligation to finance the capital improvement. c. Revenue Bonds — Revenue bonds are secured by a specific source of revenue. There is no tax pledge. Revenue bonds are issued to pay for improvements that benefit the users that repay the debt through user fees. The City issues revenue bonds primarily for the City's Airport and Utility Systems. Typically, the City is required to fund a reserve fund that has on deposit an amount no less than the average annual debt service requirements on outstanding revenue bonds, as a contingency in the event revenues that are collected for services provided are not sufficient to satisfy debt service requirements. Another method to provide for such reserves is the use of a credit facility (such as a surety bond) in lieu of cash or eligible investments in the amount of the average annual debt service requirements on the outstanding revenue bonds. The costs of both 7 —562— methods are evaluated prior to a revenue bond issue. The City fully complies with debt service and reserve funding requirements set forth in any and all bond covenants. When revenue bonds are issued or are outstanding, coverage requirements consistent with the bond covenant will be maintained, typically at a level no less than 1.25 times the average annual debt service requirements on the outstanding revenue bonds. The City maintains that it will collect rates and charges at all times that are necessary to produce gross revenues and other pledged revenue in each fiscal year equal to the greater of either: • Amounts sufficient to pay all current operating expenses plus amounts sufficient to produce net revenue for each fiscal year at least equal to 1.25 times the average annual principal and interest requirements on all revenue bonds outstanding; or • Amounts sufficient to pay the sum of all current operating expenses, the average annual principal and interest requirements on the outstanding priority bonds; required deposits to the reserve fund for revenue bonds, and amounts required to pay any other obligations reasonably anticipated to be paid from gross revenues during the fiscal year. One operating ratio that is utilized is for the days' operating coverage to generally be 90 days — meaning that maintaining revenue sufficient to cover 90 days of operating expenses is targeted. Although this ratio is not mandated by the City's bond covenants, it is one that is utilized by the City's management. The City may also issue bonds and other obligations that are secured by revenues generated within a designated geographic area of the City, such as a tax increment reinvestment zone or a public improvement district. Covenants pertaining to the coverage requirements, reserve funds and other financial considerations will be developed, working with the City's fmancial advisor and bond counsel, to ensure that any obligations issued will be creditworthy and marketable. d. State Revolving Loan Funds — The State of Texas administers various revolving loan funds, which are available to be loaned to Texas political subdivisions in accordance with the statutory authority granted to state agencies to fund loans, and the regulations of the state agency with respect to the specific loan program. Two examples of such loan programs are the Texas Water Development Board water and wastewater loan programs, and the Texas Military Preparedness Commission loan program to assist defense communities in financing infrastructure improvements. The Director of Financial Services, working with the City's financial advisor, will explore financing opportunities under State loan programs to determine if financial or other benefits may help the City in pursuing loans from such state agencies. 8 —563— e. Refunding Bond — The Director of Financial Services, working with the City's financial advisor, will consider refinancing outstanding debt issues, as more fully discussed in Section 10 of this Policy. f. Commercial Paper — The City has established a commercial paper program to provide interim (short- term) financing authority to fund improvements to the City's Utility System. The commercial paper notes are structured as bond anticipation notes, and as a condition to the issuance of the commercial paper notes, the City must provide sufficient liquidity to enable commercial paper noteholders to be paid upon the maturity of the commercial paper notes. The Director of Financial Services, working with the City's financial advisor, will monitor the commercial paper market to ensure that the City is obtaining the lowest possible interest rates on its outstanding commercial paper notes, as well as to determine, based on the needs of the City and the then existing public debt market conditions, the timing of refunding the commercial paper notes with long term fixed rate revenue bonds. g. Tax Anticipation Notes — State law permits the City to issue short term notes in anticipation of ad valorem tax collections. The City will prepare budgets to ensure that there will be no need to issue tax anticipation notes to fund the budget. However, should emergency situations arise, the Director of Financial Services, working with the City's financial advisor, will advise the City Council on the necessity of City Council approving the issuance of tax anticipation notes h. Capital Lease Financing and Equipment Notes — The Director of Financial Services, working with the City's financial advisor, will review the equipment needs of City departments and determine financing options for acquiring or leasing equipment, either through presenting to the City Council for approval of lease or lease - purchase agreements with vendors to acquire equipment, or seeking the approval from the City Council to authorize the issuance and sale of notes or other short term obligations to borrow funds to acquire equipment. i. Any other debt instrument authorized for issuance by the City in accordance with the Texas Government Code or other applicable law. 6.4 Individual revenue streams considered for proposed debt service of revenue bonds should meet a minimum debt service coverage ratio test of 1.25 times average annual debt service, along with any appropriate reserve or contingency funds. Debt coverage is defined as total revenue divided by total debt service. 9 —564— 6.5 Fixed Interest versus Variable Interest The City primarily issues fixed rate bonds to protect the City against interest rate risk. The City has the option to issue variable rate bonds and may, if market conditions warrant, consider such a structure. Commercial paper notes, due to their short term maturities (270 days or less), are treated as variable rate obligations. 6.6 Conduit Securities The City has created, and may create, nonprofit corporations as authorized by State statutes that act as a conduit for tax - exempt financing. Those corporations include but are not restricted to: (1) Corpus Christi Housing Finance Corporation, (2) Corpus Christi Industrial Development Corporation, and (3) the Coastal Bend Health Facilities Development Corporation. These entities issue bonds to unrelated commercial entities, and the City assumes no liability for the timely payment of debt issued by these entities. These bonds are not liabilities of the City or the respective corporations and are solely payable from revenues of the various commercial entities. In addition, the City has created nonprofit corporations to assist the City in financing various public infrastructure improvements, such as the North Padre Island Development Corporation and the Corpus Christi Business and Job Development Corporation. Public funds, such as voter - approved sales taxes and tax increment revenues, may be made available to these corporations by contract with the City, in fulfillment of the public purposes for which these corporations were created. 6.7 Structure Bonds are generally issued with an average life of 20 years or less for general obligation bonds and revenue bonds but may be greater for some projects such as landfills and major utility facilities whose lives are greater than 20 years. Typically, interest is paid in the first fiscal year after a bond sale, and principal is paid no later than the second fiscal year after the debt is issued. Call provisions for bond issues shall be made as short as possible consistent with the lowest interest cost to the City. The targeted maximum length to call is 10 years. However, the City may opt for a call date longer than 10 years in order to achieve the necessary goals of the particular issue. Section 7 DEBT LIMITS 7.1 The City will maintain its outstanding debt within the limits prescribed by State statute. As permitted by the Constitution of the State of Texas, home rule cities of over 5,000 population shall have a total tax allowable of $2.50 and shall have a bond allowable of 10 —565— $1.50 per $100 valuation (unless City Charter provides less). For purposes of issuing bonds, the State allowables are computed based on 90% collections. On April 3, 1993, the citizens of Corpus Christi voted to amend the City Charter which contained a tax limitation of $0.68 per $100 of assessed valuation for all purposes including debt service to allow for the tax rate to increase up to the State limit for voter approved debt after April 4, 1993. The City evaluates new debt issuance as it relates to the current debt level. The amount of debt retired each year is compared to the amount of debt to be issued any given year, and an analysis is performed to determine the City's ability to assume and support additional debt service payments. When appropriate, the issuance of self - supporting revenue bonds and self - supporting certificates of obligation bonds are also considered. 7.2 The City may choose to issue short-term debt (maturities one -year or less) that pay a fixed rate of interest or that pay a rate of interest that varies, both consistent with Federal and State laws and applicable bond covenants of pre - existing bonds. 7.2.1 The City will issue short-term securities for the purposes of providing: 7.2.1.1 interim financing for long -term capital projects; 7.2.1.2 financing of short-term assets at or near their useful life; 7.2.1.3 interim cash flow /working capital needs as they arise; or 7.2.1.4 to reduce the overall interest cost of debt financings of the City. 7.3 The City shall use economic ratios as a tool to assist in providing an objective analytical approach to determine debt capacity for new projects. These ratios may include: a. Debt per capita; b. Debt as a percent of statutory debt limit; c. Debt as a percent of appraised valuation; d. Debt service payments as a percent of governmental expenditures; or e. Level of overlapping net debt of all local taxing jurisdictions. An objective, analytical approach is used to make the determination of whether debt is issued. The process compares generally accepted standards of affordability to the current values for the City. The City strives to meet and achieve these standards. Section 8 FUND BALANCE REQUIREMENT 8.1 The City will strive to maintain a debt service fund balance for general obligation bonds and certificates of obligation of at least 2 percent of the annual debt service requirement for the fiscal year; provided, however, that this requirement shall comply with the provisions of Treasury Regulation 1.148 -2(f) the Internal Revonuo Code of 1986, a:, 11 —566— amended, which limits the amount of reserve funds that may secure the payment of debt service on bonds. Section 9 METHODS OF SALE 9.1 The City may use competitive sales, negotiated sales, or private placements. When considering the method of sale, the City will take into consideration: a. Financial conditions; b. Market conditions; c. Transaction - specific conditions; d. City - related conditions; and e. Risks associated with each method. 9.2 Competitive sales are the preferred method under the following circumstances: a. A general obligation pledge or annual appropriation of general revenue; b. Simple structure and financial analysis; c. Stable financial market; and d. Moderate par amount. 9.2.1 A competitive sale is when bonds are awarded in a sealed bid sale to an underwriter or syndicate of underwriters that provides the lowest True Interest Cost (TIC) bid. TIC is defined as the rate, which will discount the aggregate amount of debt service payable over the life of the bond issue to its present value on the date of delivery. In today's market, bids primarily are submitted electronically through a secure website. 9.2.2 Competitive Sale Bidding Parameters: 9.2.2.1 Bid Verifications - The City awards successful bidders on the basis of the lowest TIC. 9.2.2.2 Good Faith Deposits - Bidders collectively choose a bank to be the good faith bank in providing a good faith deposit. The bidders keep funds on deposit to cover the good faith check if necessary. The Financial Advisor collects a cashier's check in advance for 2% of the issue if the issue is competitive or for 1% of the issue if the issue is negotiated. Bidders not covered by the good faith bank must provide a good faith check at the time they submit their bid. When the issue closes, the good faith check is returned, usually through overnight mail. 12 —567— 9.2.2.3 Allowable Discounts/Premiums - In most cases, the City requires bidders to purchase bonds at a price of no less than par. When there are no prevailing limitations, a discount/premium may be permitted when market conditions indicate a discount/premium will be rewarded by a more competitive bid and when there is flexibility to increase /decrease the par amount of the issue. If there is considerable market activity on the date of the proposed sale or other market- related factor to necessitate improving the marketability of the issue, discounts /premiums may be permitted. Bidders are notified in advance of the allowance for discounts /premiums. 9.2.2.4 Term Bonds - Bidders may form term bonds based on the length of the maturity schedule. In a 20 -year maturity, they may form anywhere between three to five term bonds. The resulting term bond structure must completely mirror the serial bond structure. 9.3 Negotiated sales are the preferred method under the following circumstances: a. Complex transactions that require extensive financial modeling, credit analysis, pre - marketing efforts, or that are interest rate sensitive; and b. Volatile financial markets. 9.3.1 A negotiated sale is when the City chooses an underwriter or underwriting syndicate that is interested in reoffering a particular series of bonds to investors. The terms of the sale including the size of the underwriter's discount, date of sale, and other factors are negotiated between the two parties. Although the method of sale is termed negotiated, individual components of the sale may be competitively bid. The components are subject to a market analysis and reviewed prior to recommendation by staff. Negotiated sales are more advantageous when there needs to be some flexibility in the sale date or when less conventional bond structures are being sold. Negotiated sales are also often used when the issue is particularly large or if the sale of the debt issuance would be perceived to be more successful with pre - marketing efforts. 9.3.2 Negotiated Sale — Allocation and Designation Policies: 9.3.2.1 The City uses designation rules that reward performance. The most common order type used by the City is the Member Designated Order. This type of order permits the institution placing the order to designate which syndicate members receive credit for its order. Typically the City requires that each institution must designate at least three syndicate members, and no one firm may receive more than 50% credit. 13 —SfiR- 9.3.2.2 Retention - At least two days prior to pricing, the senior managing underwriter will award a block of bonds to each co- manager in the syndicate. Each co- manager is responsible for buying these bonds even if they do not obtain orders for them. If another member of the syndicate has more orders than they can fill, the member may fill orders for syndicate members that have not obtained sufficient orders. 9.3.2.3 Management Fee - The management fee to compensate the underwriters for providing assistance in structuring of the transaction, review of documents, coordination of the working group, efforts to obtain credit enhancement, and other tasks. The management fee is typically allocated in the same allocation as the retention allocation. 9.4 Private placement is the preferred method under the following circumstances: a. Small issue size; b. Questionable security for the issue; and c. Overall cost savings to the City. A private placement is a sale of debt securities to a limited number of sophisticated investors. The City may engage a placement agent to identify likely investors. A private placement is beneficial when the issue size is small or when the security of the bonds is weak since the private placement permits issuers to sell more risky securities at a higher yield to investors that are familiar with the credit risk. 9.5 The City considers the following criteria when determining the appropriate method of sale for any debt issuance: a. Complexity of the Issue — Municipal securities with complex security features require greater marketing and buyer education efforts on the part of the underwriter, to improve the investors' willingness to purchase. b. Volatility of Bond Yields — If municipal markets are subject to abrupt changes in interest rates, there may be a need to have some flexibility in the timing of the sale to take advantage of positive market changes or to delay a sale in the face of negative market changes. c. Familiarity of Underwriters with the City's Credit Quality — If underwriters are familiar with the City's credit quality, a lower TIC may be achieved. Awareness of the credit quality of the City has a direct impact on the TIC an underwriter will bid on an issue. Therefore, where additional information in the form of presale marketing benefits the interest rate, a negotiated sale may be recommended. The City strives to maintain an excellent bond rating. As a result, the Municipal Bond Market is generally familiar with the City's credit quality. 14 —569— d. Size of the Issue - The City may choose to offer sizable issues as negotiated so that pre - marketing and buyer education efforts may be done to more effectively promote the bond sale. Section 10 REFUNDING OF DEBT 10.1 The City may elect to refund existing debt for reasons including, but not limited to, the following: a. To achieve Net Present Value (NPV) savings; b. To update bond covenants on outstanding debt that impair efficient operations or prohibit necessary or desirable activities; c. To restructure the debt service schedules associated with outstanding bond issues; or d. To alter bond characteristics such as call provisions or payment dates. 10.2 If a refunding is undertaken, the City will evaluate: a. Issuance costs that will be incurred; b. Interest rate at which the refunding bonds can be issued; c. Maturity dates of the refunded bonds; d. Call date (if any) on the refunded bonds; and e. Call premium (if any) on the refunded bonds; and f. Whether to issue the refunding bonds for a period beyond the original maturi ty date. 10.3 Types of Refunding Current refundings occur when outstanding debt is called for redemption within 90 days. Most City's debt has a ten -year call date built into its structure. When debt reaches the call date, refunding bonds may be issued to pay off the old debt. Advance refundings are refundings where the debt is not called for redemption within 90 days. In an advance refunding, the proceeds to defease the debt at its call date are placed in escrow until the call date. The City's practice is generally to invest escrow in federal securities known as State and Local Government fixed rate securities. The amount to be deposited into the escrow is calculated by identifying the amount necessary to deposit, which will earn a fixed rate of interest, to accumulate to the amount necessary to be available upon the call. This practice prevents exposure to the practice of "yield burning" since there are no excess eamings under this structure. The Tax Reform Act of 1986 limits each issue to one advance refunding for all issues issued after 1986. When the interest rate savings is the principal reason for advance 15 5 1-8 refunding an issue, the City will include issues that can contribute to at least a 2.5% present value savings. Other factors may also affect the City's decision to advance refund an issue. Section 11 VARIABLE RATE EXPOSURE 11.1 The City may use variable rate debt (including commercial paper) to lower the cost of borrowing and provide a hedge against interest rate risk. 11.2 The City's target is not to exceed 30 percent of its total outstanding debt in a variable rate mode. 11.3 Variable rate debt should be converted to fixed rate debt as necessary to maintain the 30 percent target, to meet the particular needs of a financing program, or to lock in low long term fixed interest rates. 11.4 When issuing variable rate debt, the City will have appropriate contingency plans in place, such as reserves or hedging instruments, to mitigate the risk associated with rising interest rate environments. Section 12 INTEREST RATE SWAP AGREEMENTS 12.1 The City may consider the use of interest rate swap agreements on a case -by -base basis and consistent with Texas law and financial prudence. 12.2 Interest rate swap agreements may be used for the following purposes: a. To achieve significant savings as compared to other, non - derivative type products available in the bond market; b. To prudently hedge risk in the context of a particular financing or the overall asset/liability management of the City; c. To incur variable rate exposure within prudent financial guidelines; d. To achieve more flexibility in meeting overall financial objectives than available in conventional markets; or e. To accomplish a financial objective not otherwise obtainable using traditional financing methods. 12.3 The City will not enter into an interest rate swap agreement without advice of an independent advisor and bond counsel. 16 —571— 12.4 The City may enter into an interest rate swap agreement if the counterparty has at least two long -term unsecured credit ratings of at least equal to the City's long term general obligation rating from Fitch Ratings, Moody's Investors Service or Standard & Poor's Ratings Services, and the party has demonstrated experience in successfully executing interest rate swap agreements. 12.5 The City will select counterparties utilizing one of the Methods of Sale as outlined in Section 9 of this policy. 12.6 Before entering into an interest rate swap agreement, the City shall evaluate all the risks inherent in the transaction including counterparty risk, termination risk, rollover risk, basis risk, tax event risk, credit risk and amortization risk. Evaluation of risk will also include the following considerations: a. Uncertainty with respect to the City's future debt obligations; b. Effect on the City's credit quality; c. Cumulative exposure to all risk factors identified; d. Difficulty and costs associated with terminations; and e. Limitations on the ability to refund the swap's underlying bonds. 12.7 The City will monitor interest rate swap agreements no less often than on a quarterly basis to ensure compliance with corresponding swap documentation. Section 13 CONTINUING DISCLOSURE 13:1 The City will periodically review the requirements of the Municipal Securities Rulemaking Board (MSRB) and the recommendations of the Government Finance Officers Association (GFOA), including the GFOA recommendation that financial statements be prepared and presented according to generally accepted accounting principles. 13.2 The City will remain in compliance with SEC Rule 15c2 -12 by filing its annual fmancial statements and other financial and operating data for the benefit of its bondholders within six months after the end of each fiscal year. Section 14 INVESTMENT OF DEBT PROCEEDS 14.1 Debt proceeds will be invested in accordance with the City's Investment Policy or as otherwise permitted in the ordinance or resolution authorizing the issuance of the debt. 17 —572— 14.2 Interest eamed is allocated to each fund monthly based on the average balance of funds available during the month. Interest earned on proceeds from bonds, certificates of obligation, commercial paper or other short-term or long -term debt proceeds is allocated to the respective capital projects funds. 14.3 The City maintains in its Investment Policy document approved by the City Council the strategy and policies for investing all available monies (which included bond proceeds). Interest on bond proceeds is restricted such that it may only be used to fund projects that have the same purpose as the purpose for which the bonds were originally issued. Construction proceeds are typically invested in short-term securities so that they are more liquid. Section 15 ARBITRAGE 15.1 The City will follow a policy of full compliance with all arbitrage rebate requirements of the Internal Revenue Code of 1986, as amended and its adopted rules and regulations, and will perform (via contract consultant) arbitrage calculations for each debt issue subject to rebate on an annual basis. All necessary rebate liabilities will be filed and paid when due. 15.2 Arbitrage Calculations and Rebate On fixed -yield issues, the calculation of rebate must be performed no later than each five - year anniversary date of the issuance of the bonds and at final maturity. The City currently outsources those calculations on an annual basis. Where bond interest earnings exceed the arbitrage yield, the City rebates those excess earnings to the Internal Revenue Service. The City keeps detailed records of investments and construction expenditures to provide to the consultant to make the arbitrage calculation. The City plans projects carefully in order to determine the applicability of rebate exceptions. 15.3 Exceptions to Rebate Calculations Six -month Exception — Where 95% of the proceeds will be spent within six months and the other 5% will be spent within twelve months. Eighteen -month Exception — Available for any type of capital proceeds and includes the following spending schedule: 15% in six months, 60% in twelve months, and 100% in eighteen months (with a de minimus holdback). An issue does not fail to satisfy the spending requirement for the third spending period as a result of a reasonable retainage if the reasonable retainage is allocated to expenditures within 30 months of the issue date. Twenty -four month Exception - Only available to a construction issue having the following expenditure goals: 10% in six months, 45% in twelve months, 75% in eighteen 18 —573— months, and 100% in twenty-four months (with a de minimus hold back). An issue does not fail to satisfy the spending requirement for the fourth spending period as a result of unspent amounts for reasonable retainage if the reasonable retainage is allocated to expenditures within 3 years of the issue date. Section 16 CAPITAL IMPROVEMENT PROGRAM 16.1 In order to ensure sufficient cash flow is available to meet capital improvement project cash requirements, an annual debt issuance schedule is required. The Capital Improvement Planning Guide (the "Guide ") will provide the basis for the annual debt issuance schedule. 16.2 The underlying asset that is being financed should have as long a useful life as the maturity schedule of the debt issued for the financing of the asset. Since issuing debt costs more to the entity than purchasing assets outright, the use of financing will be carefully evaluated to ensure that the benefits, tangible and/or intangible derived from financing exceed the related financing costs. 16.3 On -going Capital Needs — "Pay as You Go ": 16.3.1 Capital projects are generally defined as costs to construct an asset or system improvement that exceed $5,000 and have a useful life of at least the term of financing but no less than one year. 16.3.2 The City Council's goals and policies focus on infrastructure improvements. The City strives to maintain capital assets and infrastructure at a sufficient level to protect the City's investment to minimize replacement and maintenance costs, and to maintain service levels. 16.3.3 An annual review of the (1) need for capital improvements and equipment, (2) current status of the City's infrastructure, (3) replacement and renovation needs, and (4) potential new projects, is implemented during the capital budget process. All projects, ongoing and proposed, are prioritized by City staff which includes a representative from Financial Services, the Office of Management and Budget, Engineering Services, and each department which has or may have capital improvement project requests. For every capital project, all operating and maintenance costs /estimated incremental revenues would be included in the proposal, as well as a start date, requested total budget, the capital amount expected to be expended each year, and proposed sources of funding. City staff would then match eligible requests with available sources of funding. 16.3.4 Decisions are made on prioritization of proposed projects using criteria such as: 19 —574— o Agreed orders (Federal /State), o Voter - approved bonds, o Completion of existing projects already approved by the City Council, o New projects recommended by the committee noted above, and o Emergency requests. 16.3.5 Capital improvements may be funded using current revenues (property tax, dedicated tax, enterprise user fees, etc.), grant funds, contributions (such as developer contributions) and the issuance of debt. 16.3.6 Upon completion of the Guide, City staff will present it to the City Council for approval by ordinance. Once approved, a total dollar amount of capital improvement projects would then be identified, and any additions to the Guide for that particular year would warrant a change to the ordinance to either identify additional funding for that particular project or to identify the reduction of another project in the Guide. Section 17 PUBLIC INPUT ON CAPITAL IMPROVEMENT NEEDS 17.1 Citizen Input- 17.1.1 Citizen Input Form — In order to obtain input from the citizens on projects to be included in a bond election, a "Citizen Input Form" is made available on the City's website at http: / /www.cctexas.com. The form provides a place for citizens to list in priority the projects they feel should be considered in the next bond election. It also provides a place for the reasoning in choosing those particular projects. The results of the citizen input forms would then be compiled and presented to the City Council so that a slate of projects could be prepared for the bond election. 17.1.2 Town Hall Meetings — City Council members also hold Town Hall meetings in their respective districts to obtain input from citizens on the projects they would like considered for a bond election. All the suggestions from the Town Hall meetings would then be compiled and presented to the City Council for discussion to be included on the slate of projects for the bond election. 17.2 Citizen Advisory Committee — At the discretion of the City Council, a Citizen Advisory Committee may be formed to initiate the development of a multi -year financing and management tool that identifies public facility and equipment requirements, places these requirements in order of priority, and schedules them for funding and implementation. 20 —575— Section 18 DEFINITIONS 18.1 Definitions: a. Amortization Risk — The cost to the issuer of servicing debt or honoring swap payments due to mismatch between bonds and the notional amount of the swap outstanding. b. Arbitrage — The investment of proceeds from tax- exempt debt in taxable securities to benefit from the differential in yields. c. Basis Risk — The mismatch between actual variable rate debt service and variable rate indices used to determine swap payments. d. Bond Covenant — An agreement that the issuer is obligated to perform by virtue of issuing its bonds. e. Call Dates — The date, prior to maturity, on which a callable bond may be redeemed. f. Call Premium — The price, as established in the bond covenant, at which bonds will be redeemed. g. Call Provisions — A clause in a bond contract granting the issuer the right to buy back all or part of an issue prior to the maturity date. h. Capital Lease — A contract for the purchase of capital equipment through installment payments. i. Commercial Paper — Short-term, unsecured promissory notes usually backed by a line of credit with a bank. Maturities do not exceed 270 days. J. Competitive Sales — A sale whereby the issuer determines the bond structure and solicits bids. The bonds are then awarded to the underwriting firm that submits the lowest interest costs for the debt. k. Continuing Disclosure — The principal that accurate and complete information material to the transaction, which potential investors would be likely to consider material in making investment decisions with respect to the securities, be made available on an ongoing basis. 1. Counterparty Risk — The risk that the other party to an agreement will default. m. Counterparties — The parties to an interest rate swap. 21 -576- n. Credit Risk — The risk that an issuer of debt securities or a borrower may default on its obligations, or that the payment may not be made on a negotiable instrument (i.e., the occurrence of an event modifying the credit rating of the issuer or its counterparty). o. De minimis amount — Any failure to satisfy the final spending requirement of the 18- month exception or the 24 -month exception is disregarded if the issuer exercises due diligence to complete the project financed and the amount of the failure does not exceed the lesser of 3 percent of the issue price of the issue or $250,000. p. Defeasance — The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. These are refunded bonds for which the payment of principal and interest has been assured through the structuring of a portfolio of government securities, the principal and interest on which will be sufficient to pay debt service on the refunded, outstanding bonds. When a bond issue is defeased, the claim on the revenues of the issuer is usually eliminated. Both the borrower's debt and the offsetting cash or bonds are removed from the balance sheet. q. Derivative Security — A financial security, such as an option or future, whose value is derived in part from the value and characteristics of another security, the underlying asset. r. General Obligation —Bonds backed by the annual levy of an ad valorem tax as necessary, within the limits prescribed by law (if any), to pay off the bonds. s. Hedge — A transaction that reduces the risk of an investment. t. Interest Rate Management Agreement — An agreement entered into in connection with the issuance of debt by an issuer or in connection with debt already outstanding, with a counterparty to provide for an exchange of payments based upon fixed and/or variable interest rates. u. Interest Rate Risk — The chance that a security's value will change due to a change in interest rates. For example, a bond's price drops as interest rates rise. v. Interest Rate Swap Agreement — A binding agreement between counterparties to exchange periodic interest payments on some predetermined dollar principal, which is called the notional principal amount. For example, one party will pay fixed and receive variable. w. Issuance Costs — The expenses associated with the sale of new securities, including such items as underwriter's spread, printing, legal fees and rating costs. x. Liquidity Risk — The risk that arises from the difficulty of selling an asset in a timely manner. 22 —577— y. Negotiated Sales — A sale whereby the issuer selects an underwriter in advance so that the underwriter can assist with determining the appropriate structure of the bonds. z. Notional Principal Amount — In an interest rate swap, the predetermined dollar principal on which the exchanged interest payments are based aa. Private Placement — A sale whereby the issuer sells the bonds directly to an institutional investor. bb. Reasonable Retainage — An amount, not to exceed five percent of available construction proceeds, that is retained for reasonable business purposes relating to the property financed with the proceeds of the issue. For example, a reasonable retainage may include a retention to ensure or promote compliance with a construction contract in circumstances in which the retained amount is not yet payable, or in which the issuer reasonably determines that a dispute exists regarding completion or payment. cc. Refunding Bonds — A bond issued to retire a bond already outstanding that may be sold for cash and outstanding bonds redeemed with cash or exchanged with holders of outstanding bonds. dd. Rollover Risk — The risk that results when a swap contract does not have the same terms with the unrelated bonds (ie. the mismatch of the maturity of a swap and the maturity of the underlying bonds). ee. Syndicate — A group of banks that acts jointly, on a temporary basis, to loan money in a bank credit (syndicated credit) or to underwrite a new issue of bonds. ff. Tax Anticipation Notes — Short-term notes issued in anticipation of collections of taxes. gg. Tax Event Risk — The risk that the spread between taxable and tax- exempt rates will change as a result of the changes in income tax laws or other conditions. hh. Termination Risk — The need to terminate a transaction in a market that dictates a termination payment by the issuer. ii. Variable Rate Debt — Bonds with interest rates that fluctuate based upon an index or pricing procedure. These bonds often offer lower interest rates and have short maturities. hh. Yield Burning — A municipal bond financing method. Underwriters in advance refundings add large markups on U.S. Treasury bonds bought and held in escrow to compensate investors while waiting for repayment of old bonds after issuance of the new bonds. Since bond prices and yields move in opposite directions, when the bonds -57 @s are marked up, they "bum down" the yield, which may violate federal tax rules and diminishes tax revenues. 24 38 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Resolution granting a variance from the Guidelines and Criteria for granting tax abatement and authorizing the execution of an agreement with Waterfront Communications, L.L.C., providing for temporary property tax abatement for additional improvements valued at approximately $217,225.63, to be made after January 1, 2009, to the property located at 1024 Leopard Street, Corpus Christi, Nueces County, Texas ISSUE: To assist in the promotion and redevelopment of blighted properties that will help revitalize our community PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends approval to grant a temporary property tax abatement agreement to Waterfront Communications, LLC, for additional improvements valued at approximately $217,225.63. Irma Caballero v Director of Economic Development —583— BACKGROUND INFORMATION In accordance with the City's Tax Abatement Guidelines and Criteria, Waterfront Communications is seeking tax abatement under the Renewal Community criteria for property located at 1024 Leopard Street. The property is being renovated as rental property with target tenants to include offices and possibly some retail. Renewal Community facilities provides that for a rehabilitation project, the percentage of tax abated will not exceed 5 years at 100% (includes up to 2 years for construction). 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. Waterfront Communications will have a minimum capital investment of $567,356. Waterfront Communications, L.L.C., has purchased a blighted commercial property for $230,000; spent approximately $119,483 to renovate the property, remove asbestos, correct significant structural problems, and provide for ADA accessibility and plans on additional expenditures of approximately $217,225 to complete the rehabilitation of the spaces and to build out spaces for potential tenants. The guidelines also require that Renewal Community facilities must create one (1) new permanent full -time job per $50,000 of added value to a property following completion of construction. Waterfront Communications has requested a variance on this criteria and requests the job creation requirement be waived. There is a need to waive the job creation requirement for projects within the Leopard Street Corridor in the vicinity of the Nueces County Courthouse in order to encourage the redevelopment of blighted properties. —584— A RESOLUTION GRANTING A VARIANCE FROM THE GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENT AND AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH WATERFRONT COMMUNICATIONS, L.L.C., PROVIDING FOR TEMPORARY PROPERTY TAX ABATEMENT FOR ADDITIONAL IMPROVEMENTS VALUED AT APPROXIMATELY $217,225.63, TO BE MADE AFTER JANUARY 1, 2009, TO THE PROPERTY LOCATED AT 1024 LEOPARD STREET, CORPUS CHRISTI, NUECES COUNTY, TEXAS 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 Waterfront Communications, L.L.C., 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; WHEREAS, the Waterfront Communications, L.L.C.'s proposed office building project will be located along the Leopard Street corridor in the vicinity of the Nueces County Courthouse, within the City's designated Renewal Community; WHEREAS, the Leopard Street corridor in the vicinity of the Nueces County Courthouse, shares much of the blight and lack of economic activity that is associated with Downtown Corpus Christi; WHEREAS, there is a need to promote the development along the Leopard Street corridor in the vicinity of the Nueces County Courthouse to help revitalize this portion of the community; WHEREAS, the City's Guidelines and Criteria for Granting Tax Abatement do not authorize tax abatement for projects other than Central Business Residential Facilities and multi - family housing facilities in the Renewal Community, unless the projects will result in the creation of new permanent full -time jobs: WHEREAS, there is a need to waive the job creation department for projects within the Leopard Street Corridor in the vicinity of the Nueces County Courthouse in order to encourage the redevelopment of blighted properties; WHEREAS, Waterfront Communications, L.L.C., has purchased a blighted commercial property for $230,000; spent approximately $119,483.34 to renovate the property, remove asbestos, correct significant structural problems, and provide for ADA Tax Abatement Agreement Resolution -- Waterfront Communications 12122008 —585— Page 2 of 4 accessibility; and plans on spending an additional $217,225.63 to complete the rehabilitation of the spaces and to build out the spaces for potential tenants; WHEREAS, Section 3(f) authorizes a variance from specific provisions in the City's Guidelines and Criteria for Granting Tax Abatement, if the variance obtains a vote of three - fourths of the governing body; 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 authorizes a variance from Section 2.(g)(2)A. of the City of Corpus Christi Guidelines and Criteria for Granting Tax Abatement, and authorizes a Renewal Community facility, which is the renovation of a dilapidated commercial property into rental office spaces to receive the same tax abatements without the requirement to create one (1) new permanent full -time job per $50,000 of added value on the property. SECTION 2. The City Council finds and determines the terms of the proposed agreement with Waterfront Communications, L.L.C., providing for temporary property tax abatement for approximately $217,225.63 of additional improvements to made after January 1, 2009, to the property located at 1024 Leopard Street, Corpus Christi, Nueces County, Texas. With the exception of the requirement to create new permanent full -time jobs to obtain a tax abatement, and for which the City Council has granted a variance under Section 1 of this ordinance, the property subject to the proposed agreement meets 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. Adopted at a regular meeting of the City Council on the _ day of December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor Tax Abatement Agreement Resolution — Waterfront Communications 12122008 —586— Page 3 of 4 APPROVED AS TO FORM: December 12th, 2008 R. Jay Fjkining First Assistant,City Attorney For the City Attorney Tax Abatement Agreement Resolution — Waterfront Communications 12122008 —587— Page 4 of 4 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 — Waterfront Communications 12122008 —588— 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 Waterfront Communications, LLC, a Texas limited liability company ( "Owner "), the owner of taxable property in the City of Corpus Christi, Texas, located at 1024 Leopard 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 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 1212200B.doc —589— (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 Guidelines and Criteria for Granting Tax Abatement approved by the City. 6. "Facility" means a Renewal Community Facility, approved by the City as set forth in the Guidelines and Criteria for Granting Tax Abatement adopted by the City. 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 15 TAX ABATEMENT AGREEMENT -- Waterfront Communications 12122008.doc —590— B. The Guidelines and Criteria for Granting Tax Abatement adopted by the City are incorporated as a part of this Agreement. Except 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. R196959 Land $68,750.00 Improvements $119,882.00 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: $119,483.34 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: $239,365.34 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 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 Page 3 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —591— 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 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 the City Council waiving the requirement that a Renewal Community Facility involving rehabilitation create one (1) new permanent full -time job per $50,000 of Added Value to a property following the completion of construction and the requirement to maintain the same level of employment for the term of the abatement agreement. B. The Abatement provided by this Agreement is based upon a Renewal Community Facility involving rehabilitation, the percentage of tax abated is under the following schedule: Percentage of Abatement Construction Period 100% (not to exceed 2 years) Year I 100% Year 2 100% Page 4 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —592— Year 3 100% C. This project is designated as a "rehabilitation project" under the Guidelines and Criteria, which involves the adaptive reuse of an existing structure or building for a Facility. The project must involve a minimum capital expenditure of $250,000. The rehabilitation project must involve the . adaptive reuse of an existing structure or building currently on the property tax rolls so that the Base Year Value associated with the project, includes both the value of the land and the existing improvements. All Eligible Property in excess of the Base Year Value are subject to abatement, plus the value of personal property, such as furniture and movable equipment, which would otherwise be considered Ineligible Property for any other type of abatement category. In no event, however, may the total value of personal property subject to abatement exceed $1 million or the total amount of all property subject to abatement in a rehabilitation project exceed $5 million. 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: $217,225.63 ( "Estimated Added Value "), of which $217,225.63 is eligible for tax abatement. G. 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. H. 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 and Criteria for Granting Tax Abatement approved by the City. All improvements must be completed under all applicable laws, ordinances, rules or regulations. During the Page 5 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —593— 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. VIII. EVENTS OF DEFAULT AND RECAPTURE A. Failure to Commence Operation During Term of Agreement. In the event that the Facility is not completed and does not begin operation 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 Page 6 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —594— 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 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. Page 7 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —595— 1. 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 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. Page 8 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —596— 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. 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. Page 9 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —597— 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: To the City: CITY OF CORPUS CHRISTI 1201 Leopard Street P. 0. Box 9277 Corpus Christi, Texas 78469 Attn: City Manager Page 10 of 15 TAX ABATEMENT AGREEMENT -- Waterfront Communications 12122008.doc —598— To the Owner: WATERFRONT COMMUNICATIONS, LLC 400 Mann Street, Suite 604 Corpus Christi, Texas 78401 Attn: Manager PERKES LAW FIRM, P.C. 606 N. Carancahua, Suite 1500 Corpus Christi, Texas 78476 Attn: Gregory T. Perkes, Attorney 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: CITY OF CORPUS CHRISTI, TEXAS By: By: Armando Chapa 'Angel R. Escobar City Secretary Interim City Manager APPROVED AS TO FORM ONLY: By: R. Jay Reining First Assistant City Attorney For City Attorney OWNER: WATERFRONT COMMUNICATIONS, LLC By: Darlene K. Gregory Manager Page 11 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —599— STATE OF TEXAS COUNTY OF § § § ACKNOWLEDGMENT KNOW ALL BY THESE PRESENTS This instrument was acknowledged before me on , 2008, by Darlene K. Gregory, Manager, Waterfront Communications, LLC, a Texas limited liability company, on behalf of the company. NOTARY PUBLIC, State of Texas Page 12 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —600— 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. **tabor" 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. Page 13 of 15 TAX ABATEMENT AGREEMENT — Waterfront Communications 12122008.doc —601— Exhibit A Project Plan Waterfront Communications, LLC is rehabilitating 1024 Leopard Street, Corpus Christi, TX 78401, (formerly known as Wolfson Furniture) for commercial use as a professional office building. The building will house up to 5 tenants, with approximately 3 employees per suite of 1200 +1- square feet. We intend to market the suites to professionals such as attorneys, accountants, and other business service - related businesses. The Central Business District area is a Renewal Community, and Waterfront Communications, LLC intends to be the leader in the redevelopment of the Leopard Street area. Page 14 of 15 TAX ABATEMENT AGREEMENT -- Waterfront Communications 12122008.doc —602— EXHIBIT B Real Property Description: 1024 Leopard Street, Corpus Christi, Nueces County, Texas 78401, and more particularly described as follows; to -wit: Lot Ten -A (10 -A), Block Thirty -Four (34), BLUFF PORTION, to the City of Corpus Christi, Nueces County, Texas, according to the map thereof recorded in Volume 46, Page 238, Map Records, Nueces County, Texas. Page 15 of 15 TAX ABATEMENT AGREEMENT -- Waterfront Communications 12122008.doc —603— 39 AGENDA MEMORANDUM DATE: December 16, 2008 SUBJECT: J. C. Elliott Landfill — Final Cover Phase 4 -6 and Landfill Gas Collection (Project 5216) AGENDA ITEM: a. Ordinance Appropriating $392,847.81 from the Unappropriated Bond Proceeds and Interest Earnings from the Sanitary Landfill 2006 CIP Fund No. 3362 for the J. C. Elliott Landfill Final Cover System (Phases 4 -6) And Landfill Gas Collection System Project; Changing the FY2007 -2008 Capital Budget Adopted by Ordinance No. 027546 to increase appropriations by $392,847.81; and Declaring an Emergency. b. Motion waiving a bid irregularity, and authorizing the City Manager, or his designee, to execute a construction contract with Environmental Specialties International of Baton Rouge, Louisiana, in the amount of $6,769,018.19 for the Base Bid and Additive Alternate No. 1 for the J. C. Elliott Landfill Final Cover System (Phases 4 -6) and Landfill Gas Collection System. c. Motion authorizing the City Manager, or his designee, to execute a contract engineering materials testing services with Kleinfelder, Inc, of Corpus Christi, Texas, in the amount of $465,275.00 for construction of J. C. Elliott Landfill Final Cover System (Phases 4 -6) and Landfill Gas Collection System. ISSUE: TCEQ regulations require installation of a final cover system on landfills and a landfill gas management system after final closure. RECOMMENDATION: Approval of the motion as presented. -2708-be 11/414-14 Kevin R. Stowers Lawrence Mikolalczyk 14- Interim Director - Engineering Services Director of Solid Waste Services Attachments: Exhibit A - Additional Information Exhibit B - Bid Tabulation Exhibit C - Testing Lab Contract Summary Exhibit D - Site Map H: HOMED( EVINS\ GENIANDFILL \FinalCover2008WwdMemo.doc —607— ADDITIONAL INFORMATION SUBJECT: J. C. Elliott Landfill — Final Cover Phase 4 -6 and Landfill Gas Collection (Project 5216) PROJECT DESCRIPTION: TCEQ regulations and the City's TCEQ Landfill Operating Permit require final closure to include the installation of a final cover system and a landfill gas management collection system. The contract provides for a base bid and one additive alternate bid. The base bid and additive alternate generally consist of: • Final cover for approximately 55 acres of consisting of Final Closure Phases 4 -6; and • Installation of a landfill gas management system consisting of an active landfill gas management system (additive alternate #1). The Base Bid consists of the construction of the final three phases of the final cover system (including site clearing and grading, excavation, backfill, geosynthetic clay liner, linear low density polyethylene geomembrane, drainage geocomposite, protective soil cover, compacted clay liner, topsoil, erosion control by seeding, articulated concrete block revetment, turf reinforcement mat, and regrading of drainage ditches); construction of groundwater monitoring system modifications; and construction of vertical landfill gas vents. The Additive Alternate ( #1) consists of the installation of an active landfill gas management system including connection of the vertical landfill gas extraction wells installed under the base bid, a horizontal landfill gas extraction well, landfill gas collection piping, condensate sumps, compressed air piping, and repairs to existing landfill gas collection piping and equipment. The additive alternate positions the City to participate in various landfill gas use programs which are eligible for renewable energy credits, carbon credits, clean renewable energy bond financing (0% interest rate), and federal production tax credits. These marketable instruments when combined with the revenue from the sale or use of gas for electrical production offer significant opportunity for additional revenue. The City would have the option of partnering or utilizing the landfill gas to power wastewater or other City facilities. The scope of the base bid and the alternate bid items includes all appurtenances and associated work in accordance with the plans, specifications, and contract documents. ENGINEERING MATERIALS TESTING AND LABORATORY TESTING CONTRACT: The project requires testing of the liner to verify quality and material requirements are met. The documentation is required to be submitted to TCEQ in the form of certified reports. These reports document the clay and geo- synthetic liner density, thickness, and —608— Exhibit "A" Paoe 1 of 3 construction qualities. The testing includes all liner welds, density tests, and permeability tests required by the TCEQ report documentation. The consulting engineer cannot make the certifications required by TCEQ without these tests and reports. A summary of the proposed services is attached. See Exhibit C. BIDS: Bids were scheduled to be publically opened Wednesday, 2:00 p.m., October 15, 2008. At the time of bid opening, two (2) bids had been received by the City Secretary's Office and logged in per City procedures. The two bids received were publically opened and read aloud in accordance with standard bid opening procedures. The bids opened were from Longhorn Excavators of Richmond, Texas, and Haas Anderson of Corpus Christi, Texas. The City's consultant was instructed to contact prospective bidders to determine why they had not submitted a bid. The Consultant was told by Environmental Specialties (ESI) of Baton Rouge, Louisiana that they had submitted a bid and that had been delivered at 9:28 a.m. per the Fed -Ex delivery confirmation. It was subsequently verified the third bid had been delivered to the City Purchasing Department approximately 9:30 a.m., Wednesday, October 15, 2008 and was not in the possession of the City Secretary's office. The bid was in possession of the City prior to bid opening. Council was sent a briefing memo concerning this matter in greater detail in the October 31, 2008 City Manager's packet. ATTORNEY'S OPINION: The City Attorney's office reviewed the facts of the situation, and contract terms and conditions for the receipt and opening of bids. The City Attorney's Office advised that the bid from ESI must be opened in a public opening and read aloud with other bidders notified as to the time and place of opening. All other bidders were notified of the time and place of the bid opening to allow them to be present to witness the bid opening. The bid was opened 3:30 p.m., Monday, October 20, 2008 in the Engineering Conference room with Haas Anderson attending. The City Attorney's issued a subsequent opinion when clarification was requested that the bid is irregular under General Provision B -2 -14 of the project bid and contract documents. When a bid proposal is deemed "irregular," Council must waive the irregularity in order to make the award to the contractor whose bid is deemed irregular. If the Council decides to not waive the irregularity, then Council may elect to: • authorize the City Manager to execute a construction contract with the next qualified low bidder; or • reject all bids. —609— Exhibit "A" Page 2 of 3 BID RESULTS: The apparent low bid by ESI has been deemed irregular by the City Attorney as it was not opened at the time and place advertised for bid opening. The Consultant's opinion of probable cost was $9,075,147.00. 1Ile uwa 00 auun uuvu 117 ., ,... 1111 ............_ Environmental Specialties, Inc. Baton Rouge La. ._._. Haas - Anderson Construction, Ltd. Corpus Christi, TX Longhorn Excavators, Richmond, TX Base Bid 5,302,866.50 1,466,151.69 6,442,715.00 1,733,729.00 6,233,469.00 3,254,612.03 Additive Alternate #1 Total Bid 6,769,018.19 8,176,444.00 9,488,081.03 The bid tabulation is attached. See Exhibit B. RECOMMENDATION: The bids have been reviewed by the consultant, Solid Waste Services and Engineering Services. All three bidders are deemed qualified to undertake the work. Environmental Specialties is a large established landfill contractor that has previously completed work for the City at J. C. Elliott Landfill. The contract provides for the base bid to be complete within 180 calendar days with an additional 90 calendar days being allowed if the additive alternate for the active gas management system is awarded. It is recommended that Council: • waive the irregularity; and • authorize execution of the contract with Environmental Specialties of Baton Rouge, Louisiana, for the base bid and additive alternate in the amount of $6,769,018.19. PRIOR COUNCIL ACTIONS: August 21, 2007 - Motion authorizing the City Manager, or his designee, to execute an engineering contract with HDR, Inc. (Shiner Moseley) in the amount of $404,600.00 for the J. C. Elliott Landfill Final Cover System (Phases 4 -6) and Landfill Gas Collection System (M2007 -211). FUTURE COUNCIL ACTION: Award change orders that may be required for the final cover system and expansion of the landfill gas collection system. FUNDING: Funding is available from Sanitary Landfill CIP Funds to proceed with the award. —610— Exhibit "A" Page 3 of 3 d. 0 -611- 8 8�1^'8F Nib m. or I 10 O 1 P Pm w Jp,0 w 1 p 01 m N O w w in i0�Np w w N NI nw w N n N lig N (9O l f'yN w p g 2 N m ONm IN O8 m'^ ww O '' O O • m m 000.N • N yOy 90 m N NN:, O Ory ^_ w a N: n' o' P..m VI n N m lg m n O p �0.0N Y S 0010 O N 19 ., 00 ' 0$ � O ryo M N . o pp ry 8 p n monnP^°n$i m o N N 0 O 10 0 0 19 co 000 WV W om N Nw ._co N pp o M w N m �? �.m ! 81888180p001 `c U n »2w'ww 010 sI�M119 I! 8v, u N IC1 ! Nry i py 0: Oi 1 Ny 018 N.N I mN`O v ;a'N'p 8 N I I ' 1 SOOS0;Oio8oipo8pooppo88OSSg6qµµ~£�. n V 01'10 ! _0da1S NI 0i0 1.51 1 1 8 Sm Nlo "I'a www�w 1 I I: S S'o w OSw00' 81S1S Sip Nlw 1 ! l 118V y m 3149 11 S 818 nwIN 1 810 m iOw 8 8m co Nw n �18f10 o w www 01818 �lpyNw 7tniui 4' ^p 1N n 8 Ni„, N1� a'd.0 S S pR 1= 3i qq. M.: -+{- ; $3.65_$437,635.00. $4.78 El 13144E6.00 $4.75 _.$.0432,100,P ._...... $4.75 .$137.275,00 $4.75 $289.750.00 nurc ripe auo-neaaer 12-inch HDPE Pipe Header 2-inch HDPE pippAdine 34nch HOPE piptz Forcemaln 4-inch HDPE Pipe for Proposed Weti 6-inch HDPE Pipe in 441 Trench far Proposed Well 44nch HDPEfjpefor Existing Wells 6-inch HDPE Pipe for Existing Wells Condensate Forcemain Valves Aldine Valves 16-inch Isolation Valves 12-inch Isolation Valves 10-inch Isolation Valves Tle-in to ExistinpHeader Tie-in to Existintleachate Cleanout Riser Landtec Wellheads tor Proposed Wells Landtec Wellheads for Existing Wells Sumps Existing Sumplaetrofit and Rests Horizontal Well Existing Flare Station Repairs Allowance Video Inspection of Existingip-inch Header Line 'clot Repays to Ensting .16-inch Header Line 3emove and Replace Existing 16-inch Header Line French Saf - 0 -611- AGREEMENT for Construction Materials Engineering Laboratory's Inspection and Materials Testing 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 duly authorized representative who is (Name) (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 Final Cover and Landfill Gas Collection Systems - Construction Materials Testing, Inspection, Laboratory, QA/QC, SLER/GLER/BER Documentation (Project No. 5216) "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 ". 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 fee not to exceed $465,275.00 (in figures), (FourHundred Sixty Five Thousand Two Hundred Seventy Five and no /xx dollars (in words). 4. CITY'S DISCLOSURE OF HAZARDOUS & TOXIC MATERIALS AND CONDITIONS AT THE PROJECT SITE. To the best of the City's knowledge, 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" acknowledges and confirms that "LAB" is relying upon the above warranty in undertaking to perform the services described in this AGREEMENT. CITY OF CORPUS CHRISTI LAB: By: By: Oscar Martinez (Date) (SIGNATURE) Assistant City Manager ATTEST: Armando Chapa, City Secretary (Date) APPROVED AS TO FORM: Legal Department (Date) —612— (Date) 5002 Ambassador Row (Address) Corpus Christi, TX 78469 (City /State /Zip) 361- 854 -4774 Fax: 361-854-4924 (Phone /Fax No.) Exhibit C Page 1 of 6 KLE /NFELOER Bright People. Right Solutions. December 4, 2008 Mr. Kevin Stowers Engineering Department City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469 -9277 Reference: J.C. Elliott Landfill Final Cover System Installation - Phase 4 -6 and Landfill Gas Management System Corpus Christi, Texas Proposal No. CCH8P152 Dear Mr. Stowers: 5002 Ambassador Row Corpus Christi, TX 78416 PI 361.854.4774 11 361.854.4924 www.kleinfelder.com Kleinfelder is pleased to submit this proposal for construction materials testing services for the final cover system installation, Phase 4 -6 and landfill gas management system located at the J.C. Elliott Landfill in Corpus Christi, Texas. The purpose of this proposal is to establish our scope of work for the project, associated unit fees for our services and the terms and conditions of this agreement. We have prepared this proposal based on a brief review of the following: • A construction schedule from Environmental Specialties International, Inc. dated October 24, 2008 • Review of the plans and specifications dated September 5, 2008. This proposal is based on our general understanding of the project plans, specifications and proposed construction schedule. At this time, we estimate a preliminary budget of $465,275 to be billed on a time - and - materials basis. We have attached a Proposed Fee Schedule / Estimate indicating our budget breakdown and unit costs. For budgeting purposes, we have assumed a percentage of our hours will be billed at our overtime rate. However, the actual quantities and overtime hours incurred will depend on the actual scheduling of our activities by the contractor. Our estimate does not include costs of re- inspections, contractor delays, stand -by time or site visits that are cancelled upon arrival. Additional site visits due to failed tests and costs for retests or for contractor convenience are not included within the estimate. CCH8P152 Copyright 2008, Kleinfelder —613— Decgml�PZh1ibit C8 Page 2 of 6 KLE /NFELDER YqM People. WOE fo4lsw Workscope Description — Fee Estimate J.C. Elliott Landfill Final Cover System Installation - Phase 4 -6 and Landfill Gas Management System Corpus Christi, Texas General: The City of Corpus Christi proposes to close approximately 50 acres of the Southern extension of the J.C. Elliott Landfill located east of the previously closed 52 acres (Phases I, II and III). The cover system for this particular closure will contain a GCL liner, 40 mil LLDPE geomembrane, an 18" protective cover layer and a 7 "erosion layer. In accordance with Texas Commission on Environmental Quality (TCEQ) regulations and guidelines, certain tests and inspections must be made during the liner construction to verify the quality of liner construction and to allow the project engineer to complete the required documentation. The work described herein is our estimate of the number of tests and personnel time required to complete the quality control testing and FCSER documentation. We have been advised that the cover system will be constructed as follows: Top GCL 40 -mil LLDPE Geomembrane 18 inches — Protective Cover 7 inches Erosion Layer Side Slope GCL 40 -mil LLDPE Geomembrane Drainage Geocomposite 18 inches — Protective Cover 7 inches Erosion Layer Field Services: Kleinfelder will provide membrane specialist technicians on a full -time basis during construction of the GCL and Geomembrane liner. This will enable the technician specialist to observe all phases of the GCL and Geomembrane construction from delivery and verification of membrane thickness to the observation and documentation of the field seaming process and pressure testing. The field technician will also view the Contractor's general installation practices in relation to his QC /QA documentation and will secure all field test specimens which must be tested destructively in the laboratory. The field technician will also observe the protective cover and erosion layer installation. The field technician will report his observations and test results to the project Geotechnical engineer. Photographs will be taken to document each phase of the GCL and Geomembrane installation. The field seams of the 40 -mil LLDPE liner will be examined by several field test methods in addition to destructive testing of specimens cut from the field seams at maximum intervals of 500 feet. These field -cut specimens will be shipped to the laboratory where "peel and shear" tests will be conducted. Based on our preliminary estimate of the total job seam length, we have estimated that about 300 tests may be required. This number will vary depending upon the Contractor's specific layout of the seams and the number of retest required. The number of conformance test required for GCL, LLDPE Geomembrane and Geocomposite are estimated and could vary depending upon the number of resin batches. CCHBP152 2 Dece bgexhibit C Copyright 2008, Kleinfelder Page 3 of 6 -6 1 4— 1 KLE /NFELDER 45N MNe. fthaS. '" During the landfill gas management system installation, Kleinfelder technicians will observe and document the installation of the vertical landfill gas extraction wells and the horizontal wells. Repairs to the existing cover and the new cover materials will also be documented. Engineering Supervision and FCSER: Kleinfelder's management and engineering staff will supervise the field services, view construction procedures, interface with City staff, supervise all laboratory testing and complete the documentation and cover evaluation report. Mr. Don R. Rokohl, P.E. will be Project Engineer. Mr. Jerry Lipstreu, S.E.T., Area Manager will provide day -to -day coordination with our field technicians. Mr. Rokohl and Mr. Lipstreu will be available daily as needed to view general construction operations and witness our field testing services. They will also maintain an on -going file of the test results and other documentation, which will form part of the FCSER document. We understand all surveying required for vertical and horizontal control of construction will be provided by a third party. The third party will also furnish tabulations of survey data for thickness verification of the protective cover and erosion layer. The FCSER document will be complete and submitted in triplicate to the TCEQ as soon as possible following completion of the final cover system and all laboratory verification testing. COMPENSATION The fees for this project will be billed monthly on a time - and - materials basis subject to the attached Basis of Charges. This preliminary estimate is based on the proposed contractor's preliminary construction schedule, and therefore will be heavily influenced by constraints outside the control of Kleinfelder including, but not limited to the contractors actual schedule, project sequencing and inclement weather. Additional services, such as services provided beyond the quantities proposed, or other services not anticipated at this time, may be required. If requested, these additional services would be treated as extra, and billed in accordance with the unit rates and Basis of Charges identified. SCHEDULING AND COMMUNICATIONS We require that our dispatch office (361- 854 -4774) be contacted at least 24 hours in advance of any necessary tests and observations. In order for us to accomplish our work scope, we will require two sets of the approved project plans and specifications prior to the start of our services. In addition, an onsite pre- construction meeting with all involved parties is also requested. AUTHORIZATION You may authorize this work scope by issuing a City of Corpus Christi contract. CCH8P152 Copyright 2008, Kleinfelder 3 Dece —615— mbEichigh Page 4 of 6 KLE !Mkt LDER Yg, hpk XiMM fOWbu. LIMITATIONS Kleinfelder offers a range of engineering services to suit the varying needs of our clients. Although risk can never be eliminated, more detailed and extensive investigations yield more information, which may help understand and manage the degree of risk. Since such detailed services involve greater expense, our clients participate in determining the level of service that provides adequate information for their purposes at acceptable levels of risk. Acceptance of this proposal will indicate that an authorized representative of the City of Corpus Christi has reviewed the Scope of Services, and determined that they do not need or want more services than are being proposed at this time. Any exceptions should be noted and may result in adjustments to our fees. Kleinfelder will perform all services in a manner consistent with the standards of care and skill ordinarily exercised by members of the profession practicing under similar conditions in the geographic vicinity and at the time the services will be performed. Therefore, no warranty or guarantee, express or implied, is made part of the services offered by this proposal. Again, we appreciate the opportunity to provide this proposal for the phase 4 -6 final cover, and we look forward to working with you to make this project a success. Please call (361) 854 -4774 if you have any questions or comments. We sincerely appreciate the opportunity to be of service and look forward to working with you on this project. Sincerely, KLEINFELDER CENTRAL INC. rry Lipstreu, S.E.T. Area Manager Don R. Rokohl, P.E. Senior Geotechnical Engineer CCHBP152 Copyright 2008, Kleinfelder 4 Dece —616— 6L1xi49Pb Page 5 of 6 Description A. Field Services ,rn KLE /NFELDER J.C. Elliott Landfill Final Cover System Installation Phase 4 -6 and Landfill Gas Management System Unit Prices and Fee Estimate Estimated Estimated Quantities Unit Rate Total Geomembrane Services 1792 hr O.T. Contingency 1368 hr Soil Services (Clay Liner) 200 hr Soil Services (Protective Cover) 360 hr O.T. Contingency 270 hr Nuclear Gauge Charges 25 days Vehicle Charge 350 ea B. Laboratory Testing 53.00 79.00 47.00 47.00 70.00 80.00 30.00 Atterberg Limits 75 ea 78.00 #200 Sieve Tests 75 ea 34.00 Moisture - Density Curves 4 ea 230.00 Permeability — cover material 3 ea 325.00 Flexible membrane testing to include: Destructive membrane seam tests, conformance testing of geomembrane, GCL and geocomposite Outside testing cost charged at cost plus 20% Estimated cost Concrete cylinders GIS /GPS equipment 20 ea 77 days C. Engineering and Preparation of FCSER 20.00 100.00 $94,976.00 $108,072.00 $9,400.00 $16,920.00 $18,900.00 $2,000.00 $10,500.00 $5,850.00 $2,550.00 $920.00 $975.00 $90,690.00 $400.00 $7,700.00 Senior Professional 315 hr 135.00 $42,525.00 (Project Engineer) Graphic Design 200 hr 53.00 $10,600.00 (Drafting) Project Manager /Administration Services 10% of Monthly Invoice $42,297.00 Estimated Total: $465,275.00 CCH8P152 Copyright 2008, Kleinfelder —617— CecetitbIc 2 Page 6 of 6 File: \Mproject \councilexhibits \exh5216dec 16.dwg NUECES BAY AGNES HWY 44 ce x CORPUS CHRISTI INTERNATIONAL�`'0.� AIRPORT N 0 OSO CREEK J.C. ELLIOTT LANDFILL F.M. 43 FM 2444 SITE LOCATION MAP PROJECT # 5216 NOT TO SCALE EXHIBIT "C" J.C. ELLIOTT LANDFILL -FINAL COVER PHASE 4 -6 AND LANDFILL GAS COLLECTION 618 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 12 -04 -08 ORDINANCE APPROPRIATING $392,847.81 FROM THE UNAPPROPRIATED BOND PROCEEDS AND INTEREST EARNINGS FROM THE SANITARY LANDFILL 2006 CIP FUND NO. 3362 FOR THE J. C. ELLIOTT LANDFILL FINAL COVER SYSTEM (PHASES 4 -6) AND LANDFILL GAS COLLECTION SYSTEM PROJECT; CHANGING THE FY 2007- 2008 CAPITAL BUDGET ADOPTED BY ORDINANCE NO. 027546 TO INCREASE APPROPRIATIONS BY $392,847.81; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. An amount of $392,847.81 from the unappropriated bond proceeds and interest eamings from the Sanitary Landfill 2006 CIP Fund No. 3362 is appropriated for the J. C. Elliott Landfill Final Cover System (Phases 4 -6) and Landfill Gas Collection System Project. SECTION 2. The FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 is changed to increase appropriations by $392,847.81. 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 16th of December, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED AS TO FORM:08- Dec -2008 Veronica Ocanas Assistant City Attorney for City Attorney 121608 ORD App $392.847 for JC Elliott Landfill —619— 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: liwe, 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 121608 ORD App $392.847 for JC Elliott Landfill —620— 40 CITY COUNCIL AGENDA MEMORANDUM December 9, 2008 AGENDA ITEM: Public Hearing and First Reading Ordinance to consider approving the FY 2009 Capital Budget and Capital Improvement Planning Guide in the amount of $161,285,700. ISSUE: City Charter requires the City Council to review the recommendations of the Planning Commission and act on the Capital Budget. BACKGROUND: A public hearing and recommendation to approve the FY 2009 Capital Budget and Capital Improvement Planning Guide was made by the Planning Commission on November 19, 2008. Public input may also be received at the public hearing and first reading on December 9th and the second reading on December 16th of the ordinance. REQUIRED COUNCIL ACTION: Public Hearing and First Reading Ordinance to consider approving the FY 2009 Capital Budget and Capital Improvement Planning Guide in the amount of $161,285,700. FUTURE COUNCIL ACTION: Second reading Ordinance to consider approving the FY 2009 Capital Budget and Capital Improvement Planning Guide in the amount of $161,285,700. Eddie Houlihan Assistant Director of Management and Budget -623- ORDINANCE APPROVING THE FY 2009 CAPITAL BUDGET AND CAPITAL IMPROVEMENT PLANNING GUIDE IN THE AMOUNT OF $161,285,700. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the FY 2009 Capital Budget and Capital Improvement Planning Guide in the amount of $161,285,700 is hereby approved. A copy of the FY 2009 Capital Budget and Capital Improvement Planning Guide is on file in the Office of the City Secretary. —624— That the foregoing or i nce was read for theIfirst time and passed to its second reading on this the day of �2 ____ 2008, by the following vote: Henry Garrett Priscilla G. Leal Melody Cooper '� '�-�,��� John E. Marez Larry Elizondo, Sr. _�/ Nelda Martinez Mike Hummell Michael McCutchon U 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: November 24, 2008 By: X Lisa Agui Assistant City Attorney For City Attorney —625— Henry Garrett Mayor City of Corpus Christi, Texas w Z O 0 0 Z z m z < < 0- I- < Z o cr) 2 ow o > " 0 >- LL 0 2 LLJ J 0 • 0- • ct CL 1 Capital Budget Approach • Focus on Completion of Bond 2004 Projects • Complete 18 street pavement improvement projects financed with Tax Notes • Begin Work on Bond 2008 Projects • Continue pro- active approach for infrastructure replacement • Focus on Council Directives and Goals 2 Capital Budget Highlights • Includes completion of: - City -wide Storm Water drainage master plan; - Master Channel 27; and - Airport drainage improvements • Continuing engineering and design work on New Broadway Wastewater Treatment Plant with construction expected to begin in FY 2010 • Continued engineering and design work on the Greenwood Wastewater Treatment Plant with construction expected to begin in 2011 • Continues utility program to systematically replace aging infrastructure and reduce maintenance costs • Continuation of South Guth Park Relocation Project 3 2009 Funding Sources by Type $161,285.7 (Amounts in 000's) Community Development Block Grant Program, $680.1, 00/0 Certificates of Obligation, $15,409.0, 10% CIP Reserves, $365.1, 00/0 Bond Issue 2008 Proceeds, $13,188.5, 80/0 Operating Transfers /Other, $ 2,038.4, 1% Commercial Paper /Revenue Bonds, $79,803.8, 50% Bond Issue 2004 Proceeds, $ 21,392.7, 13% FAA Grant, $7,380.3, 50/0 Tax Increment Financing District Revenue, $972.1, 1% 4 -A Corporation, $1,100.0, 1% nticipation Notes, $15,262.8, 9% TxDOT Grant, $847.5, 1 °/0 Texas M ilitary Revolving Loan Fund, Texas Parks & Wildlife $2,145.4, 1% Grant, $700.0, 0% 4 2009 Funding Uses by Program $161,285.7 (Amounts in 000's) Bond 2008, $18,257.0, 11% Water Supply, $1,087.0, 1% Water, $18,601.4, 12% Wastewater, $32,862.5, 20% Airport, $7,795.4, 5% Gas, $3,167.5, 2% Storm Water, $19,191.9, 12% Parks & Recreation, $11,675.7, 7% Public Facilities, $388.0, 0% Public Health & Safety, $15,946.6, 10% Streets, $32,312.7, 20% 5 Millions $200 $150 $100 $50 $0 REVENUES BY TYPE (3 Years) FY 2009 FY 2010 FY 2011 C Comm. Paper/Rev. Bonds ❑ Cert. of Obl. ❑ G.O. Bonds 2004 M G.O. Bonds 2008 • Grants • Other 0 Tax Notes Note: The short-term (3 -year) part of this Planning Guide generally reflects funds already on hand. The funding decline shown 6 above is due mostly to current Grant Awards, 2004 G.O. Bonds, & Tax Notes being used to complete current projects. The increase in commercial paper over $75M reflects utility funds needed to support street projects. Millions $200 $150 $100 $50 $0 PROGRAM EXPENDITURES (3 Years) FY 2009 FY 2010 FY 2011 O Public Health & Safety O Streets O Parks & Recreation 0 Water O Public Facilities O Gas Wastewater • Water Supply 0 Bond 2008 Storm Water ❑ Airport Note: The short-term (3 -year) part of this Planning Guide generally reflects funds already on hand. The funding decline shown above is due mostly to current Grant Awards, 2004 G.O. Bonds, & Tax Notes being used to complete current projects. Given the recent passage of the Bond election, Bond 2008 projects are Streets only. Non - streets 2008 projects — currently listed as "Long -Range Capital Improvement Projects" -will be broken out in the FY 2010 Capital Budget. Airport Annual Capital Budget $7, 795.4 (Amounts in 000's) Other Improvements, $606.3, 8% Rehabilitate Taxiway Systems, $3,001.0, 38% Improve Airport Drainage Area VI, $4,188.1, 54% 9 10 • Parks & Recreation Annual Capital Budget $11,675.7 (Amounts in 000's) Other, $436.9, 4% South Guth Park Relocation Project, $6,762.8, 58% Senior Centers, $528.4, 5% Packe ry Channel Improvements, $828.9, 7% Cons e rvationlInte r- pretive Park on Oso Bay, $700.0, 6% Golf Course Improvements, $981.8, 8% Bay Trail, Phase 3, $847.5, 7% Sports Field Improvements, $589.4, 5% 11 12 • Public Facilities Annual Capital Budget $388.0 (Amounts in 000's) New So uths ide Library, $224.6, 58% Parkdale Branch Library, $163.4, 42% 13 14 • Public Health & Safety Annual Capital Budget $15,946.6 (Amounts in 000's) Elliott Landfill, $8,409.0, 53% Ada Co -Ed Fire Stations, $193.0, 1% Cefe Valenzuela Landfill, $7,000.0, 44% Packery Channel South Parking Lot, $143.2, 1% Southside Fire Station, $201.4, 1% 15 16 • Streets Annual Capital Budget $45, 646.9 ($32,312.7 excluding utilities) (Amounts in 000's) Other, $1,890.7, 4% Street Overlays 2008, Wooldridge Road, $11,150.0, 24% $1,191.2, 3% Park Road 22 Bridge, $1,260.5, 3% Traffic Signals (New and Upgrades), $1,557.7, 3% North Port Avenue, $2,145.4, 5% Traffic Congestion Management, $2,393.5, 5% ADA Improvements, $3,070.9, 7% Laguna Shores Road, $3,195.7, 7% Bayfront Development Plan , $5,750.0, 13% Doddridge Street - Ocean Drive to South Staples, $5,039.7, 11% Cimarron Boulevard Improvements, $3,812.8, 8% Everhart Road, $3,188.8, 7% 17 18 • Gas Annual Capital Budget $3,167.5 (Amounts in 000's) Lifecycle Replacement, $1,500.0, 47% Automated Meter /-Reading Program, $1,667.5, 53% 19 20 • Storm Water Annual Capital Budget $19,191.9 (Amounts in 000's) Area Drainage Improvements, $5,011.0, Utility Relocations, 26% $6,344.9, 33% Other, $1,275.0, 7% Storm Water Master Plan, $1,217.2, 6% Rolled Curb and Gutter — Replacement, $1,043.2, 5% Bridge Replacement, $350.0, 2% Channel Improvements, $3,950.6, 21% 21 22 • Wastewater Annual Capital Budget $32,862.5 (Amounts in 000's) Utility Relocation Costs, $4,555.0, 14% Other, $2,740.0, 8% City Wide Odor Control Improvements, $797.9, 2% Allison Plant and Basin Improvements, $580.0, 2% New Broadway Plant and Basin Improvements, $4,800.0, 15% Existing Broadway Plant, $2,055.0, 6% Greenwood Plant Expansion and Basin Improvements, $1,245.0, 4% Life Station Upgrades, $7,912.1, 23% Laguna Madre Plant and Basin Imp., $1,510.0, 5% Oso Plant and Basin Whitecap Plant and Basin Improvements, $6,437.5, Improvements, $230.0, 1% 20% 23 24 • Water Annual Capital Budget $18,601.4 (Amounts in 000's) Other, $1,383.3, 7% Utility Relocations, $2,434.3, 13% Water Main Repair/Replacement, $3,140.0, 17% Water Automated Meter Reading Program, $5,731.9, 31% Elevated Storage Tanks, $3,008.0, 16% O.N. Stevens Plant Improvements, $2,903.9, 16% 25 26 • Water Supply Annual Capital Budget $1,087.0 (Amounts in 000's) Choke Canyon Dam Improvements, $ 175.0, 16% Garwood Water Supply Transmission Facilities, Phase 2A, $ 112.0, 10% Wesley Seale Dam Improvements, $ 340.0, 32% ON Stevens Raw Water Influent Improvements, $ 260.0, 24% North Ship Channel Raw Water Lines Extension, $200.0, 18% 27 28 • Bond Program Annual Capital Budget $18,257.0 (Amounts in 000's) Other, $2,377.3, 13% ADA Improvements, $1,000.0, 5% Mansheim & Helen $2,889.7, 16% Yorktow n Blvd., $3,238.2, 18% Kostoryz Road, $2,755.0, 15% Staples Street, $3,046.8, 17% Street Overlays, $2,950.0, 16% 29 30 • G.0./C.O.'s and $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 - $0 00 Revenu Service e Bond Debt 001+ 0D" 000 �Sti e 0,x1+ OS? 04' 01b '1+ '1+ '1+ 00W ti ti ti ti ti el 0 General Obligation /Certificates of Obligation 0 Revenue Bonds Assumptions: 1) No change in Interest & Sinking (I &S) tax component of $.199175 per $100 valuation 2) Includes $75M issuance of G.O.'s in FY 2012 - but no revenue bond support if required 3) Does not include any C.O. issuances subsequent to FY 2009 4) Constant $75M in revenue bonds issued each per year plus any revenue bond support required by 2008 G.O.'s Note: The above graph represents historical and projected debt service requirements on G.O. /C.O.'s and revenue bonds those debt instruments the City relies heavily on to finance capital projects. G.O.'s are supported by the I &S component of property taxes, revenue bonds are supported by utility rates, and C.O.'s are supported by activities considered to be self - supporting (i.e. Landfill, etc.). A breakdown of Revenue Bond debt service - by program - is on the following slide. 31 Utility Debt Service by Program (Revenue Bond and Refs, S120,000,000 s100,000,000 S80,000,000 S60,000,000 S40,000,000 S20,000,000 ndin g Debt On ti00� �OO� ti00� �b�s� �e ti0�� ti0�� ti0�� tie 00 ti 1 y) El GAS D STORM WATER WASTEWATER WATER Note: This graph breaks down the revenue bond debt service component shown on the previous slide and reflects actual and anticipated increases in utility debt service requirements through 2018. Storm Water was broken out from Water in FY 2009. There has been a general overall percentage migration from Water Program expenditures to Wastewater and Storm Water. This migration is reflected in the comparative actual and projected utility rates shown on the following slide. 32 10 -Year Impact on Utility Rates Significant Assumptions: Rates do not include any needed Revenue Bonds to support possible GO. Debt in 2012. Rate increases reflect debt service requirements needed to support 2008 GO. Bonds and constant $75M annual CIP utility work through 2018. Storm Water is include in Water rates as Storm Water Fund is new and not yet self- supporting. Storm water is included in the ICL rates. Gas rates do not include pass- through gas charges. Actual .....2009 Working capital as a % of operating expenses 30.5% Projected Projected Projected Projected 2010 2011 2012 2013 28.8% 28.2% 26.8 % 25.5% Projected 2014 Projected 2015 26.1% Projected Projected Projected 2016 2017 2018 29.8% 34.2% 38.9% Months operating reserves 3.7 3.5 3.4 3.2 3.1 3. Average Annual Debt Service Coverage 1.384 1.365 1.330 1.338 1.373 1.447 1.531 3.6 4.1 4.7 1.577 1.651 1.715 1.277 1.274 Current Debt Service Coverage 1.279 1.272 Water bill increases. ICL Res 7000 gals'. JCL Commercial 50,000 gals '. OCL Large volumes 100, 000, 000 gals Wastewater rate increas e Gas rate 9.2% 29.3% 12.4% 0 00% 4% T. 4.8% 66% 56% 1A% 3 4% 5 5% 4 0% 11% 0.4% 3.5% 42% 6.0% 7 20% 20% 20% 20% 6.0% 44% 43% 7 0 2 0% 5.996 4.9% 5 6 %: 4.7% 4 2% 2.3 % 32% 2.1% 32% 24% 37% 12 %'. 7 .0 2 0% 2.0% 20% 2.0% Antic ipaled New Debt (Am aunts 1 Expected New Utility Work UtilityWork Sup port ing Bond 200 Total Utility Work by Fiscal Year; 74,91 506 7 5,0 0,8 5,000 75,000 75,000!: N.A.V. N.AV N.A.V: 79,97 9 ,577 89,597 9 5,8 1 88,321 75,0 0 0 75,000 75,0 00 75,0 00 < 75,000', Note: The chart above summarizes actual (FY 2009) and projected (FY 2010 -2018) utility rate increases needed to support Utility Operations, non GO.- related Utility Capital Projects, and GO. Bond 2008 Street Projects. Please see sample water bills - by rate class - on the following slide. N.A.V. - Not available. The Utility Com ponent ICL - Inside City Lim its OCL - Outside City Limits 33 Sam pi e Water Bills asses throu Different Rate CI g h 201 3 SAMPLE WATER BILLS WATER FUND CrrY OF CORPUS CHRISTI, TEXAS Item 2008 2009 2009% 2010 .::2010% r'. 2011 .:::2011% 2012 .::2012% 2013 :::2013 %. INSIDE -CRY Residentia 3,000 galshn o : $ 13.03 $ 14.16 9% $ 15.09 :: :7% $ 16.17 7% $ 17.50 :: 8% $ 18.90 87 5,000 galshno $ 20.16 $ 21.62 : 7% $ 2258 :: ::: 47 $ 2385 : :::' 6% $ 2555 :: 7% $ 2720 :: 6% 7,000 galshno COMMUNITYAVERAGE $ 27.28 $ 2938 9% $ 3038 37 $ 32.26 5% $ 3438 7% $ 3630 6% 10,000 galshn o : $ 37.97 $ 43.07 13% $ 44.14 27 $ 45.98 4% $ 48.78 ! 6% $ 51.18 5% 15,000 galshn o : $ 55.78 $ 67.84 : 22% $ 69.06 :: 27 $ 71.60 4% $ 75.72 :: 6% $ 79.02 : 4% 20,000 galshn o $ 78.99 $ 96.97 :: 23% $ 98.40 :: :::'17 $ 101.81 : ::: 3% $ 107.52 :: 6% $ 111.91 :: 47 30,000 galshno ! $ 125.42 $ 154.30 23% $ 156.11 47 $ 161.21 3% $ 170.00 5% $ 176.44 47 50,000 galshn o : $ 234.88 $ 292.72 25% $ 295.66 !1 % $ 305.13 3% $ 321.73 ! 5% $ 333.58 4% Commercial 10,000 galshno $ 4134 $ 4955 20% $ 5119 37 $.... 5359 5% $.... 5708 7% $ 6015 5% 25,000 galshno : $ 91.88 $ 116.10 26% $ 117.99 27 $ 122.18 ::4% $ 129.12 6 %. $ 134.54 : 4% 50,000 galshn o : $ 180.24 $ 233.01 : 29% $ 236.18 :: :17 $ 244.11 3% $ 257.61 :: 6% $ 267.84 : 4% 100,000 gals /mo $ 355.80 $ 466.84 :: 31% $ 472.58 :: ::: 17 $ 487.97 : :::. 3% $ 514.59 :: 5% $ 534.46 :: 4% 500,000 galshn o ! $ 1,456.56 $ 2,269.61 567 $ 2,288.24 47 $ 2,355.18 3% $ 2,477.82 5% $ 2,564.74 47 Large Volume 15,000,000 galshn o $ 35,01833 $ 38,66656 :: 10% $ 39,939.04 :: ::3% $ 41,935 62 : :::b% $ 4472968 :: 7% $ 47,87016 :: 7% 25,000,000 galshn o AVERAGE ICL LARGE VOL $ 51,885.68 $ 64,85938 25% $ 65,47149 17 $ 67,929.29 4% $ 71,87827 6% $ 76,454 11 67 100,000,000 galshn o : $ 200,693.43 $ 269,708.98 34% $ 266,317.29 -1 % $ 273,241.44 ::3 % $ 286,973.13 57 $ 303,545 07 ! 67 OUTSIDE -CITY Large Volume 15,000,000 galshn o : $ 45,119.60 $ 50,561.37 127 $ 53401 76 6% $ 56,354.27 6% $ 60,331.63 !: 7% $ 64,761.13 77 25,000,000 galshn o : $ 68,232.29 $ 76,616.72 :: 12% $ 79,500.43 :: 4% $ 82,258.19 : 3% $ 86,924.98 :: 6% $ 92,268.80 : 6% 100,000,000 galshn o $ 239,457.29 $ 269,25633 :: 12% $ 272,15129 :: :: 1% $ 273116 41 : ::: O% $ 282 58544 :: 3% $ 294,378 59 :: 4% 34 Remaining Events /Actions Tuesday, December 16, 2008 Regular City Council Meeting - Council Discussion and Capital Budget Approval / 2nd Reading 35 41 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 12/9/08 AGENDA ITEM: AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAP- TER 23, HEALTH AND SANITATION, SECTION 23 -76, SMOKING PROHIBITIONS, TO RE- PEAL THE EXISTING PROVISIONS OF THE SECTION AND ENACT NEW PROVISIONS REGARDING SMOKING; PROVIDING FOR SEVERANCE; PROVIDING FOR PENALTIES; AND PROVIDING FOR PUBLICATION. ISSUE: Proposed repeal of the existing ordinance and enacting new provisions regarding smoking within the City of Corpus Christi. REQUIRED COUNCIL ACTION: Approval or decline of proposed amendment. PREVIOUS COUNCIL ACTION: Approval and passage of original ordinance in 1986, with sub- sequent amendments in 1993, 2005, and 2007. CONCLUSION AND RECOMMENDATION: Approval and passage of amendment. Attachments: None. —647— Oscar Martinez Assistant City Manager for the City Manager BACKGROUND INFORMATION This agenda item is a proposed amendment of Section 23 -76 of the Code of Ordinances, as requested by the Mayor, for the City Council's consideration. Section 23 -76 sets out the provisions of law regarding where smoking may and may not occur within the City of Corpus Christi. -648- AN ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 23, HEALTH AND SANITATION, SECTION 23 -76, SMOKING PROHIBITIONS, TO REPEAL THE EXISTING PROVISIONS OF THE SECTION AND ENACT NEW PROVISIONS REGARDING SMOKING; PROVIDING FOR SEVERANCE; PROVIDING FOR PENALTIES; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Chapter 23, Section 23 -76, Smoking Prohibitions, of the Code of Ordi- nances is repealed in its entirety and new provisions are enacted for Section 23 -76 to read as follows: e ter icipal facility. —649-- designated fern mokinn safes. EHord251 Ver2.doc -650- Page 2 of 11 EHord251 Ver2.doc -651- Page 3 of 11 " Entertainment- smoking, "2. In movic houccs, the message "SMOKING IS PROHIBITED" EHord251 Ver2.doc -652- Page 4 of 11 responsible -to: in designated a EHord251 Ver2.doc —653— Page 5 of 11 " (f) Violations. appropriate -cow, substance-otherwise-illegal, "(3) This section shall take effect September 1, 1986." EHord251 Ve2.doc -654- Page 6 of 11 "Section 23 -76. Smoking prohibitions. "(A) Declaration of policy. It is the intent and purpose of this section to provide citizens' protection from exposure to tobacco, or other, smoke by placing restrictions on smoking within the City of Corpus Christi. The provisions of this section are designed to achieve a reasonable balance between the rights of nonsmokers to breathe clean air and the wishes of smokers. It is declared to be the policy of the City of Corpus Christi to give preferential treatment to nonsmokers when disputes arise. "(B) The following definitions shall apply to this section: "Cigar bar means an establishment used primarily for the sale of cigar and cigar- related products, which sales constitute more than 40% of the total retail sales of the establishment and in which the serving of alcoholic beverages are incidental to such retail operations. "Home occupation means any professional or commercial activity which is carried on wholly within a residential building by a member, or members, of a family residing on the premises, in connection with which there are no persons outside the family employed, and which use is otherwise in compliance with the zoning ordinance provisions. When within the previously stated requirements, such home occupation shall be considered a private residence for purposes of this section except when being used as a child care, adult day care, or health care facility. "Private club means an organization, whether incorporated or not, which (1) is the owner, lessee, or occupant of a building or portion thereof used exclusively for club purposes at all times, (2) is operated solely for a fraternal purpose but not for pecuniary gain, (3) only sells alcoholic beverages incidental to its operation, (4) conducts its affairs and management through a board of directors, executive committee, or similar body chosen by the members at an annual meeting, (5) has established bylaws or a constitution to govern its activities, and (6) has been granted an exemption from the payment of federal income tax as a club under 26 U.S.C. Section 501. "Public building means any building other than a building used as a private residence, unless such residence is being used as a child care, adult day care, or health care facility. If a portion of a building is used as a private residence and another portion of the building is used for business purposes or commercial activities, then "public building," as used in this section, shall apply to the portions of the building used for business purposes or commercial purposes, but not the portion used solely as a residence. EHord251 Ver2.doc —655— Page 7 of 11 "Retail tobacco store means a specialty retail establishment used primarily for the sale of tobacco products and accessories and in which the sale of other non - tobacco products is incidental. "Smoke or smoking means inhaling, exhaling, or burning any lighted cigar, cigarette, pipe or other lighted tobacco product in any manner or form. "(C) It shall be unlawful for any person to perform the following acts in any public building in the City or within ten (10) feet of an entrance used by the public to any public building except in passing: "(1) Smoke; "(2) Carry a lighted cigar, cigarette, or tobacco - containing pipe; or "(3) Light a cigar, cigarette, or tobacco - containing pipe. "(D) Posting of signs; removal of ashtrays. "(1) "No Smoking" signs or the international "No Smoking" symbol (consisting of a pictorial representation of a burning cigarette enclosed in a red circle with a red bar across it) shall be clearly and conspicuously posted at every entrance of a public building where smoking is prohibited by this section. "No Smoking" signs or the international "No Smoking" symbol shall be posted by the owner, operator, manager, or other person in control of the premises. "(2) All ashtrays and smoking paraphernalia must be removed by the owner, operator, manager, or other person in control of the premises from any area where smoking is prohibited by this section. "(E) It shall be unlawful for any owner or operator of any public building to place or allow to be placed any of the following items in any public building or within ten (10) feet of an entrance used by the public to any public building: "(1) Ashtrays; "(2) Smoking paraphernalia: or "(3) Signs that indicate that smoking is permitted. "(F) The provisions of this section do not apply to retail tobacco stores and cigar bars so long as smoke from these places does not infiltrate into areas where smoking is prohibited under this section. EHord251 Ver2.doc —656— Page 8 of 11 "(G) The provisions of this section do not apply to private clubs so long as smoke from these places does not infiltrate into areas where smoking is prohibited under this section; however, the provisions of this section do apply to a private club when such club is being used for a function to which the general public is invited. "(ji) The provisions of this section do not apply to a bingo facility operated under the Bingo Enabling Act, Chapter 2001 of the Texas Occupations Code, if: "(1) An enclosed smoking area is provided; "(2) The smoking area is mechanically ventilated to prevent smoke from entering a non - smoking area; "(3) No one under the age of 18 is admitted to the smoking area; "(4) Patrons do not enter or exit the facility through the smoking area; and "(5) Patrons do not have to access or cross through the smoking area to utilize any ancillary services of the facility which are available to any patron or employee of the facility, such as public restrooms, cashier counters, con- cession areas, etc. "(H) (I) Nothing in this section may be construed to prohibit smoking on outside patios, such as those located at bars, lounges, nightclubs, taverns, and restaurants, if otherwise conducted in compliance with this section, applicable city fire prevention ordinances, and State alcoholic beverage laws. (J) No area may be designated for smoking by an owner, operator, manager, or other person in control of the premises where prohibited•by the city's fire prevention ordinances or another agency having jurisdiction. • "ft() (K) Inspection: enforcement. "(1) The owner, operator, manager, or person in control of any premises subject to this section shall permit the director of health, or the director's designees, entrance to the premises to determine compliance with this section. Such responsibility belongs to all of said persons, and any or all may be prosecuted for a violation of this section. "(2) The director of public health and the director's designees are authorized to serve official notices of violations of this section. "(3) Any person who violates any part of this section commits an offense punishable under sections 1 -6 and 1 -6.1 of the Code of Ordinances. EHord251 Ver2.doc —657— Page of 11 "(K) (L) Miscellaneous. "(1) Nothing in this section may be construed to permit the smoking of any substance otherwise illegal. "(2) When possession of burning tobacco or smoking tobacco is also prohibited by Section 48.01, Texas Penal Code, as to a facility of a public primary or secondary school or an elevator, enclosed theater or movie house, library, museum, hospital, transit system bus, plane, or train which is a public place, such violation shall be prosecuted under State law." SECTION 2. If, for any reason, any section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it will not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is the definite intent of the City Council that every section, paragraph, subdivision, phrase, word, and provision of this ordinance be given full force and effect for its purpose. SECTION 3. A violation of any provision of this ordinance or requirements implemented under this ordinance constitutes an offense punishable as provided in this ordinance and in Sections 1 -6 and 1 -6.1 of the Code of Ordinances of the City of Corpus Christi. SECTION 4. Publication of this ordinance is to be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi, Texas. EHord251 Ver2.doc _ 6 5 8 _ Page 10 of 11 That the foregoing or nce was red for the frst time and passed to its second reading on this the day of ai u , 2008, by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Iv0 Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon That the foregoing ordinance was read for the second time and was finally passed on this the day of , 2008, by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly PASSED AND APPROVED this the ATTEST: Armando Chapa City Secretary APPROVED as to form: December 2, 2008 %-) rM1L E it za$6th R. Hundley Assistant City Attorney for the City Attorney EHord251 Ver1.doc —659— Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon day of , 2008. Henry Garrett Mayor Page 11 of 11 42 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: 20th Annual "Feast of Sharing" STAFF PRESENTER(S): Name 1. Linda Lewis 2. Lisa Oliver Title /Position Assistant to Mayor Garrett Sr. Services Supervisor OUTSIDE PRESENTER(S): Name 1. Shelley Parks 2. Richard S. Schmidt 3. Amy Baxmann 4. Kathie Coons 6. Mrs. Vera Mata Title /Position Mgr. of Public Affairs Judge Sales /Booking Coordinator Manager Volunteer. Department Mayor's Office Sr. Community Services Organization HEB Grocery Co. U. 5. Bankruptcy Court SMG /American Bank Center Volunteer Center ISSUE: Announcement by HEB Grocery Company and the City of Corpus Christi, along with several generous contributing businesses and agencies as they share the festive details of the 20th Annual "Feast of Sharing ". BACKGROUND: REQUIRED COUNCIL ACTION: No Additional Background ❑ Exhibits ❑ mth vone Linda Lewis Assistant to Mayor Garrett -663- 43 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Report on CalaIlen Independent School District by Dr. Arturo Almendarez, Superintendent STAFF PRESENTER(S): Name Title /Position JoAnn Hooks Director of Education Initiatives OUTSIDE PRESENTER(S): Name Title /Position /Organization Dr. Arturo Almendarez Superintendent CalaIlen Independent School District (CISD) CISD Staff in Attendance: Mr. Patrick Romero Dr. Anita Danaher Deputy Superintendent (CISD) Assistant Superintendent (CISD) CISD School Board of Trustees in Attendance: Mrs. Tammy McDonald Mrs. Jim Callis Board Member Board Member 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. CalaIlen Independent School District 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. -667- 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. —668— JoAnn Hooks Director of Education Initiatives • The Calallen Independent School District was rated as a Recognized district for eight consecutive years (1996 -2003) and again received the distinction in 2007. • The primary campuses have been rated either Exemplary or Recognized every year since 2001. F Z r ® The three elementary campuses are Title I school wide and 100% of the teachers are rated as highly qualified. received Gold Performance Acknowledgements for Reading and Math received the Texas Business and Education Coalition Honor Roll Award for 2008 has been recognized as a Title One Distinguished Progress School • 100% 3rd grade from both passed Reading TAKS in 2008. Zero students had to attend SSI summer school or be retained in 3rd grade. • Over 50% of 3rd graders from both campuses achieved commended performance in both math and reading in 2008. • T.E.A. Recognized campus - The only local middle school to receive this recognition for 2007 -08 TAKS scores. • Gold Performance Acknowledgements in: - Reading, Writing and Social Studies NvWyn ffn$Or EM NW In order to promote positive student connections with school, ALL CMS students participate in a club activity on Friday. • Some of the clubs offered include: - Guitar - Peer Mediation - Young Men's Character Club - Spanish - Junior Historians - Scrapbook - Health /Wellness - Student Council - Crime Stoppers - Spirit - Art - Technology - Hospitality - Book Writing - Environmental - Chess — Wildlife Conservation — NJHS • Within the school day (30 minutes) • Tutorials provided for struggling students • Enrichment activities provided for students who do not need assistances — Enrichment students rotate through a variety of activities each week: • UIL, Team Building, Music Appreciation, Chess, Art, Technology, Current Events, Board Games, Personal Finance, Weight Lifting, Fitness Activities, etc. • Health • Spanish • Art • Journalism • Theater Arts • Speech • Keyboarding • Physical Education 1 CISD consistently ranks at or near the top in all subject areas on TAKS assessments. — Calallen is ranked among the top 5 percent of all Texas schools that offer advanced placement classes. • In 2007 -08, 32% of Calallen's juniors and seniors took Advanced Placement courses. • Approximately 70% of students taking one or more AP classes received college credit for at least one of the classes they finished. • This success rate continues to rank Calallen among the top 5% of all Texas schools that offer advanced placement classes. GL. I J I M■ ■ v r■ t W Points of Distinction • AP Scholar Awards for 2007 -2008 - AP Scholar granted to students who received grades of 3 or higher on three or more AP exams —20 students. - AP Scholar with Honor granted to students who earn at least 3.5 on all AP exams taken, and 3.0 or higher on four or more of tin exams —10 students. GL. I J I M■ ■ v r■ t W Points of Distinction • AP Scholar Awards for 2007 -2008 (continued) - AP Scholar with Distinction granted to students who receive an average grade of at least 3.5 on all AP exams taken, and grades of 3.0 or higher on five or more of these exams —16 students. National AP Scholar granted to students in United States who receive an average grade of 4.0 on all AP exams taken, and grades of 4.0 or higher on eigbt or more of these exams —3 students. GL. / M 1 ■ v r■ M W. Points of Distinction • Calallen ISD results of the 2007 -08 National Merit Scholarship competition included one National Merit Scholar, 5 Commended Students, and one National Hispanic Scholar. • Calallen ISD results of the 2008 -2009 National Merit Scholarship competition includes one National Merit Scholar semi - finalist and i Commended Students. Ur • Calallen High School's Advanced Placement program has earned the Texas Gold Performance Advanced Placement Award for the past several years. ( I us i n • Calallen 1 SD is recognized throughout the state as an athletic powerhouse and holds numerous state and national records in a variety of sports. Athletic scholarships are regularly awarded to Calallen athletes. • In 2007 -08, Calallen's Challenge Team won second place in the PBS (KEDT) Academic Challenge city championship against area high schools. The team won the first place award in both 2005 -06 and 2007 -08. ON Pc; ® The CHS Robotics team competed in the Javalina Robotics competition at A &M Kingsville on November 15, 2008. The team placed 18th in the competition. • Calallen students and faculty stay involved in the community by donating blood to the Coastal Bend Blood Bank. CHS won first place in the High School Challenge in for the past consecutive five years. • Calallen was awarded the 2007 Award of Merit for Advancing Public Understanding of the Importance of Blood Donation. ilk n • Calallen High School received a $50, 000 Investment Capital Fund grant for 2007 -2008 to restructure the high school. ON Pc; ® The C /SD Science Academy of Academic Excellence is continuing to restructure our science programs with the addition of new courses. J • Weight Training and Exercise Fitness • Accounting 11 -Dual Credit • Introduction to Horticultural Science - Dual Credit • Health science Technology 1I1— Phlebotomy (1st semester) and Introduction to Clinical Laboratory Science (2nd semester) —Dual Credit • Physics 11 AP (B) • Earth and Space Science • Ready, Set, Teach! 1 & 11 • Process Technology • Process Instrumentation • GIS • Dual Credit Algebra I I • Dual Credit Economics • Spanish 111 Pre -AP • Welding 11 • Fundamentals of Criminal Law • Court Procedures I f\- eN4) 1 ■ 1 ■ WWI ' • 16 Categories — Natural Science Academy — Health Science Academy — Medical Technology Academy — Pre - Engineering Academy — Marketing and Entrepreneurship — Criminal Justice — Business Management and Administration 1 ■ • Continued wI1 — Nutrition — Teaching / Education — Academy of Industrial and Agricultural Sciences a Building Trades 0 Process Technology 1 ■ wIF ' Academy of Industrial and Agricultural Sciences - Continued • Animal Science and Veterinary Technology • Agricultural Communications • Wildlife and Fisheries • Engineering and Fabrication • Landscape Design and Construction HEALTH SCIENCE FOUR -YEAR ACADEMIC COURSE SEQUENCE Stn Grade 10' Grade 11t "` Grade 12th' Grade Biology I Pre -AP Chemistry 1 Pre -AP and Anatomy & Physiology Physics I Pre -AP Chemistry H AP and Physics 11 AP (B) Anatomy & Biology 11 AP Physiology or (select 2) Chemistry II or Biology II Medical Terminology Health Science Technology 1 and Medical Terminology Health Science Medical Laboratory Technology II 1 Technician /Phlebotomy and or Medical Terminology 1 HSTEIll /Pharmacology 1 Algebra 1 or Geometry Algebra II or Geometry Algebra II or Pre - Calculus/ Pre- Calculus Calculus AB/ Calculus BC English 1 English II English 1I1 or English IV or English 111 AP English IV AP World Geography World History U.S. History U.S. Government and Economics PROCESS TECHNOLOGY ACADEMIC COURSE SEQUENCE 9th Grade 10th Grade 11Th Grade 12th Grade Introduction to Process Technology Process' Technology I: Equipment Process II: Instrumentation Process Technology III: Field Experience Biology 1 Chemistry 1 Physics 1 Environmental Systems Algebra I Geometry Algebra II Pre - Calculus English 1 English II' English 111 English IV World Geography World History U.S. History U.S. Government and Economics AGRICULTURAL ENGINEERING AND FABRICATION ACADEMIC COURSE SEQUENCE 9th Grade 10th Grade 11th Grade 12th Grade Introduction to World Agriculture and Applied Agriculture Introduction to Agricultural Mechanics and Agricultural Power Technology Personal Skills Development in Agriculture and Agricultural Metal Fabrication Agricultural Mechanics (2 hour block) Biology 1 Chemistry 1 Physics 1 Environmental Systems Algebra I Geometry Algebra 11 Pre- Calculus English 1 English II English 111 English IV World Geography World History U.S. History U.S. Government and Economics ENGINEERING FOUR -YEAR ACADEMIC COURSE SEQUENCE 9`° Grade 10 Grade 11 "' Grade 12th Grade Biology 1 Pre -AP Chemistry 1 Pre -AP Physics 1 Pre -AP and Chemistry II or Biology 11 Physics 11 AP (C) and Chemistry 11 or Biology 11 Algebra 1 Pre -AP or Geometry Pre -AP Geometry Pre -AP Algebra II Pre-AP Pre - Calculus Pre- AP (select one) Algebra 11 Pre -AP Pre - Calculus Pre AP' Calculus .1 (select one) Pre- Calculus Pre AP Calculus 1 or 11 (select one) English English 11 English III English IV World Geography World History U.S. History U.S. Government and Economics Physics 1 is required prior to or concurrently with Biology 11 AP or Chemistry I AP. /e+ 5.[ Addition at Wood River Elementary $ 2,800,000 Addition at East Elementary $ 2,600,000 Addition at CMS — 6th grade wing $ 7,500,000 Magee Replacement School (650 -700 students) $13,900,000 High School Improvements a. New AG Facility $ 1,500,000 b. Band Hall Improvements $ 500,000 c. District Activity /Aquatic Center $ 2,900,000 d. Technology $ 850,000 Convert Magee to District Support Facility to accommodate DAP /Curriculum, Maintenance, Central Receiving /Storage, Technology and NEW Central Kitchen $ 2,025,000 Bus Barn Upgrade $ 120,000 Technology $ 3,500,000 Maintenance $ 1,500,000 a. Parking Lots / Road Upgrades $ 2,000,000 Athletics and Physical Education a. Expansion to Stadium (Visitor's Side) $ 500,000 b. Synthetic grass at Stadium $ 550,000 c. Baseball /Softball Field Improvements $ 400,000 d. Resurface Middle School Track $ 120,000 e. Old Gym Improvements $ 400,000 Costs include furniture/equipment: fees /testing, and a 10% contingency. Costs are based on June 2007 market. 44 NO ATTACHMENT FOR THIS ITEM -689- 45 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: December 16, 2008 AGENDA ITEM: Local Economic Condition Update ISSUE: Update City Council on current economic conditions and what effect they may have on the FY09 Budget and Proposed FY 10 Budget. REQUIRED COUNCIL ACTION: None Attachments: —693— Eddie Houlihan Assistant Director of Management and Budget PRELIMINARY DISCUSSION REGARDING LOCAL ECONOMY AND THE CITY'S FINANCIAL CONDITION • 1. What Do We Know? • 2. What Could it Mean to the City of Corpus Christi? • 3. What Can We Do About it? • 4. Discussion -694- 1 . The Recent Credit Crisis and Related Decline in the Stock Market Has Created Delays in Bond Issuance, Project Start Up, Increases in the Cost of Borrowing and Generated Greater Supply of Potential Contractors. -695- 2 • Corporate Profits Have Declined Nationwide in the Last Five Consecutive Quarters • The Most Recent Fiscal Quarter Resulted in a .5% Decrease in Gross Domestic Product • These factors may begin to affect the City's primary employers first and overtime this decreased investment may begin to affect secondary employers and other sectors of our economy. • The Corpus Christi unemployment Rate Has Increased From 4.1% in October 2007 to 5.2% in October 2008. • State and National Unemployment Rates Also Increased During This Same Time Period • These Trends May Affect the City's Revenue Trends and Increase Demands for Service -696- 3 NAS INGLESIDE /CC ARMY DEPOT /NAS CORPUS CHRISTI REALIGNMENT AND CLOSURE • By September 2010 the Navy will Vacate Naval Station Ingleside • Loss of over 4,000 civilian jobs (445 direct /3,690 indirect jobs) • This equates to 6.5% of San Patricio County's Labor Force and 1.1% of Nueces County's Labor Force • Loss of over $234.4 million in payroll -NAS Ingleside • Loss of over $108.4 million in payroll -CC NAS /CC Army Depot • Loss of 3,000 military personnel • Impact could begin as early as late Spring /Early Summer 2009 • WHAT COULD THIS MEAN TO THE CITY OF CORPUS CHRISTI? —697— 4 GENERAL FUND . Sixty-One Percent of General Fund Revenues are Comprised of Sources That Are Directly Affected by the Economic Environment (Property Tax, Sales Tax, Industrial District Tax and Franchise Fees) -698- 5 DEBT SERVICE • Twenty-Seven Percent of Debt Service Revenues are Generated by Property Taxes. • Contributions From Other Funds May Also be Negatively Impacted by Local Economic Conditions -699 - 6 SPECIAL REVENUE FUNDS • Eighty -Seven Percent of Special Revenue Funds are Comprised of Revenue Sources that may be Negatively Affected by the Local Economy (Property Tax, Hotel Occupancy Tax, Sales Tax, Development Services and Arena /Convention Center Revenues) -700- 7 INTERNAL SERVICE FUNDS • Although Internal Service Funds Serve Inter - Departmental Needs of the City, Consideration May be Given to: • The relatively large appropriations required to support these funds • Cost efficiency of delivering internal support to City departments • Consideration of internal service fund balances -701- 8 ENTERPRISE FUNDS • Debt Service Costs Place Long Term Revenue Demands on Enterprise Fund Revenues and Reduce the Ability to be Flexible in How funds are Used • Thirty Percent of all Enterprise Fund Revenues are a Direct Pass Through • Utility Rates Affect Personal Disposable Income and Cost of Business • Revenue Streams Need to be Protected to Support More Immediate Operational Costs that Support Daily Services to Customers -702- 9 ALL EXPENDITURES . Expenditures With Greater Flexibility to Reduce: Salaries and Benefits 28% Materials and Supplies 12% Contractual Services 17% Other Charges 2% Reserve Appropriation 1% Internal Service Allocations 6% Transfer to Other Funds 15% Capital Outlay 1% Total 82% -703- 10 ADDITIONAL FINANCIAL CONSIDERATIONS ■ GASB 45 . TMRS . Need for Capital Investment in Vehicles, Equipment and Facilities . Employee Compensation ACTIONS THAT MAY BE CONSIDERED 1. Hiring Policy /Procedure Review 2. Evaluation of City Staffing Plans Regarding Overtime, Temporary Employees, Flex Scheduling and Tele- Commuting Options 3. Evaluate Capital Improvement Plan for Cost Efficient Scheduling 4. Study Possible Opportunity to Participate in Federal Stimulus Package 5. Conduct Intensified Analysis of Current Year's Financial Trend to Anticipate Effects of an Economic Downturn —704— 11 6. Re- evaluate All Policies Governing Expenditures of Operating Funds 7. Accelerate Budget Preparation Schedule 8. Postpone Amendment to Fiscal Period 9. Analyze and Consider Future Use of Appropriable Fund Balances 10. Specify Target Expenditure Reductions in Department Expenditures in FY09 and FY10 11. Create a Revenue Maximization Program 12. Consider Organizational Structure to Maximize Service Delivery and Streamline Management Oversight 13. Analyze a Possible "Windfall" From Decreasing Fuel Prices and Reserve Set Asides 14. Implement Energy Efficiency Program 15. Evaluate the City's Contract Management Capacity -705- 12 16. Build the Financial Management Capacity of Staff 17. Evaluate How we Financially Manage Capital Projects 18. Consider Outsourcing 19. Evaluate the Sale of Unnecessary Assets 20. Carefully Plan Public investments that Support the Local Economy -706- 13 46 AGENDA CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION REGULAR MEETING DATE: Tuesday, December 16, 2008 TIME: During the meeting of the City Council beginning at 10:00 a.m. PLACE: City Council Chambers 1201 Leopard Street Corpus Christi, TX 78401 1. President John E. Marez calls the meeting to order 2. Secretary Armando Chapa calls roll. Board of Directors John E. Marez, President Melody Cooper, Vice President Larry Elizondo, Sr. Henry Garrett Mike Hummell Bill Kelly Priscilla Leal Michael McCutchon Nelda Martinez Officers 'Angel R. Escobar, General Manager Armando Chapa, Secretary Mary Juarez, Asst Secretary Cindy O'Brien, Treasurer Constance P. Sanchez, Asst Treasurer 3. Approval of the minutes of September 9, 2008 4. Approval of the financial report 5. Motion authorizing the General Manager or his designee to execute a subrecipient agreement with The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. 6. Public Comment 7. Adjournment —709— MINUTES CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION September 9, 2008 3:23 P.M. PRESENT Board of Directors John Marez, President Melody Cooper, Vice - President Henry Garrett Bill Kelly Priscilla Leal Michael McCutchon Nelda Martinez ABSENT Larry Elizondo, Sr. Mike Hummell Officers George K. Noe, General Manager Armando Chapa, Secretary Mary Juarez, Asst. Secretary Cindy O'Brien, Treasurer Constance Sanchez, Asst. Treasurer President Marez called the meeting to order in the Council Chambers of City Hall. Secretary Chapa verified that a quorum was present to conduct the meeting and notice of the meeting had been posted. Director Leal made the following statement: "I publicly disclose that I am a member of the Nueces County Community Action Agency Board. I will obtain no financial interest or benefit from a CDBG, ESG or HOME activity. I will have no financial interest in any contract with respect to a CDBG, ESG or HOME activity or its proceeds. I will abstain from participation in all deliberation and voting of funding related to this board." President Marez called for the approval of the minutes from the July 8, 2008 and July 15, 2008 meetings. Ms. Martinez made a motion to approve the minutes as presented, seconded by Mr. Garrett, and passed. President Marez called for the financial report for eleven months ended June 30, 2008. Treasurer Cindy O'Brien stated the fund balance was $19,834,617. Ms. Martinez made a motion to approve the financial report, seconded by Mr. Garrett, and passed. President Marez called for Item 5, motion to designate 'Angel R. Escobar as General Manager of the Corporation. Mr. Garrett made a motion to designate, seconded by Ms. Martinez, and passed. President Marez introduced Item No. 6; 6b, and 6c, motion authorizing the General Manager or designee to execute FY2008 Subrecipient funding agreements from the HOME Investment Partnerships (HOME) Program and to execute all related and necessary documents. Daniel Gallegos, Community Development Administrator, stated that the FY2008 Consolidated Annual Action Plan funds were appropriated and they are requesting the subrecipient funding agreements which preserve affordable housing. Secretary Chapa polled the Corporation for their votes on Item 6: —7 1 0— Minutes — CCCIC meeting September 9, 2008 — page 2 6. MOTION AUTHORIZING THE GENERAL MANAGER OR DESIGNEE TO EXECUTE FY 2008 SUBRECIPIENT FUNDING AGREEMENTS FROM THE HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM AND TO EXECUTE ALL RELATED AND NECESSARY DOCUMENTS. FY2008 HOME FUNDING — FOR AFFORDABLE HOUSING PROGRAMS a. Accessible Housing Resources, Inc. - $85,000 for a HUD 811 new construction rental project for five very extremely low income individuals with disabilities and one managers unit; exterior wall, roof, insulation upgrades and higher efficiency fixtures to increase energy efficiency, windstorm protection and to provide long -term affordability. b. Nueces County Community Action Interim Financing: Infill Revitalization Project (CHDO) - $189,000 to build eight (8) 2/2 or 3/2 new construction homes for families at 80% or below in an underserved area. An emphasis will be placed on assisting families at the lower end of Area Median Income. Construction of all units to be HOME assisted. c. Nueces County Community Action Agency Acquisition/Rehab /Resale - $65,000 to acquire a home in need of repair, rehab to meet or exceed residential building codes and incorporate LEED and ENERGY STAR standards. Completed home is to be sold to a family at 890% or below median income. The foregoing motion was passed and approved as follows: Marez, Cooper, Garrett, Kelly, and Martinez voting "Aye "; Hummell, Elizondo, and McCutchon absent; Leal abstained. President Marez introduced Item No. 7, motion authorizing the General Manager or designee to execute a FY2008 HOME agreement with the Coastal Bend Alcohol and Drug Rehabilitation Center dba Charlie's Place with the revised scope of work from rehabilitation to acquisition. Daniel Gallegos, Community Development Administrator, stated they are requesting to redirect HOME funding and amend the scope of work from rehabilitation of their current facility at 24 North Country club to acquisition of real property at the corner of McBride Lane and Interstate 37. Mr. Gallegos also stated that the new facility is over three times the size of their current location and their programs will remain unchanged. Secretary Chapa polled the Corporation for their votes on Item 7: 7. MOTION AUTHORIZING THE GENERAL MANAGER OR DESIGNEE TO EXECUTE A FY2008 HOME AGREEMENT WITH THE COASTAL BEND ALCOHOL AND DRUG REHABILITATION CENTER DBA CHARLIE'S PLACE WITH THE REVISED SCOPE OF WORK FROM REHABILITATION TO ACQUISITION. The foregoing motion was passed and approved as follows: Marez, Cooper, Garrett, Kelly, and Martinez voting "Aye "; Hummell, Elizondo, and McCutchon absent; Leal abstained. —711— Minutes — CCCIC meeting September 9, 2008 — page 3 President Marez introduced Item No. 8, consideration and possible action on a resolution declaring 2918 Blake Street, formally known as Lot 8, Block B, Reynolds Addition of the City of Corpus Christi, Nueces County, Texas, as surplus property; authorizing publication of notice and sale of the property by sealed bids; authorizing the General Manager or the General Manager's designee to accept the highest amount bid in exchange for the property; and authorizing the General Manager or the General Manager's designee to execute any and all necessary documents related to this transaction. Daniel Gallegos, Community Development Administrator, stated the property originally owned by CCCIC and sold to new owners who defaulted on the note. The property was sold at public auction and CCCIC was the highest bidder. Secretary Chapa polled the Corporation for their votes on Item 8: 8. CONSIDERATION AND POSSIBLE ACTION ON A RESOLUTION DELCARING 2918 BLAKE STREET, FORMALLY KNOWN AS LOT 8, BLOCK B, REYNOLDS ADDITION OF THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS, AS SURPLUS PROPERTY; AUTHORIZING PUBLICATION OF NOTICE AND SALE OF THE PROPERTY BY SEALED BIDS; AUTHORIZING THE GENERAL MANAGER OR THE GENERAL MANAGER'S DESIGNEE TO ACCEPT THE HIGHEST AMOUNT BID IN EXCHANGE FOR THE PROPERTY; AND AUTHORIZING THE GENERAL MANAGER OR THE GENERAL MANAGER'S DESIGNEE TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS RELATED TO THIS TRANSACTION. The foregoing motion was passed and approved as follows: Marez, Cooper, Garrett, Kelly, and Martinez voting "Aye "; Hummell, Elizondo, and McCutchon absent; Leal abstained. President Marez called for public comment. There was none. There being no further business to come before the Board, President Marez adjourned the meeting at 3:29 p.m. on September 9, 2008. —712— CITY OF CORPUS CHRISTI CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION COMBINED BALANCE SHEET October 31, 2008 Loan Program Special Project HOME Program ASSETS Fund Fund Fund Total Cash and investments 1,008,734 243,470 204,369 1,456,573 Due from U S Govemment/Other Fund 0 0 0 0 Mortgages receivable 10,891,664 0 6,700,612 17,592,276 Accrued interest receivable 0 0 0 Account receivable 0 0 0 0 Leasehold improvements (net of accumulated amortization) 0 0 0 0 Investment in property (net of accumulated depreciation) 132,118 21,047 0 153,165 Total assets 12 032 516 264,517 6,904,981 19,202,014 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable 0 0 0 0 Bank note payable 0 0 0 0 Total liabilities 0 0 0 0 Fund Balance: Reserved for mortgages 10,891,664 21,047 6,700,612 17,613,323 Reserved for Investments 132,118 0 0 132,118 Unreserved 1,008,734 243,470 204,369 1,456,573 Total fund balance 12,032,516 264,517 6,904,981 19,202,014 Total liabilities and fund balance 12 032 516 264,517 6,904,981 19,202,014 -713- CITY OF CORPUS CHRISTI CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE THREE MONTHS ENDING OCTOBER 31, 2008 Loan Program Special Project HOME Program Fund Fund Fund Revenues: Total Contribution from Federal Govemment 0 0 243,410 243,410 Interest on loans 14,668 0 3,016 17,684 Interest on investments 3,661 1,251 801 5,713 Rental income 16,687 0 0 16,687 Miscellaneous 497 0 69 566 Total revenues 35,513 1,251 247,296 284,060 Expenditures: Grants 0 0 121,904 121,904 Warranty Work 10,449 0 0 10,449 Community Development administration 0 0 0 0 Loan processing 0 0 0 0 Accounting services 0 0 0 0 Interest expense 0 0 0 0 Miscellaneous 0 0 0 0 Accumulated amortization- 30,999 0 155,637 186,636 forgivable loans 0 0 0 0 leasehold improvements 0 0 0 0 Accumulated depreciation - building 1,866 0 0 1,866 Total expenditures 43,314 0 277,541 320,855 Excess of revenues over expenditures (7,801) 1,251 (30,245) (36,795) Other financing sources(uses): Operating transfers in(out): Transfer From CDBG 0 0 0 0 Transfer To CDBG 0 0 0 0 Total other financing sources(uses) 0 0 0 0 Excess (Deficit)of revenues and other financing sources over expenditures and other uses Fund balances at August 1, 2008 Fund balances at October 31, 2008 (7,801) 1,251 (30,245) (36,795) 12,040,317 263,266 6,935,226 19,238,809 12 032 516 264 517 6,904.981 19,202,014 -714- Memorandum TO: President John E. Marez and Members of the Board of the Corpus Christi Community Improvement Corporation FROM: 'Angel R. Escobar, General Manager DATE: December 4, 2008 SUBJECT: Request for Meeting of the Corpus Christi Improvement Corporation (CCCIC) on December 16, 2008 1. Motion authorizing the General Manager or his designee to execute a subrecipient agreement with The Apartments of the Village for $400,000 of HOME Program grant funds to be provided from FY2007 and FY2008 for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. Within the approval of the 2007 Consolidated Annual Action Plan, the Affordable Living Development conceptual project was allocated $200,000 of HOME funding to provide for permanent supportive housing units for purpose of decreasing the duration of homelessness. In addition, within the approval of the 2008 Consolidated Annual Action Plan $200,000 of HOME funding was allocated to TX LULAC to provide for the "adaptive reuse of a 68 -year old building for new construction of an 80 -unit Single Room Occupancy (SRO) Residence." Subsequently, a Subrecipient Agreement with a revision in the scope of work from adaptive reuse /new construction of an existing facility, as stated above, to acquisition /rehabilitation of an existing property located at 402 N. Port is being requested. The Texas Department of Housing and Community Affairs (TDHCA) met on November 13, 2008, to award low income housing tax credits to various housing projects. Within this action, TDHCA allocated low income housing tax credits to this proposed development. This in essence is providing for the permanent housing financing for the project which is complimented with HOME program funding which ensures the viability of the project. The total cost of the housing project is approximately $4M. The number of permanent supportive housing units (80) this project is proposing to be completed remains unchanged as with the original proposal. Anticipated start of construction is September 2009 with approximately 10 months for project completion. Staff recommends the authorization of the General Manager or designee execute a subrecipient agreement with The Apartments of the Village for $400,000 of HOME Program grant funds to be provided for acquisition and development costs related to an affordable housing development to be located at 420 N. Port. —715— UMW %."10%•• City of Corpus Christi -718-