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HomeMy WebLinkAboutAgenda Packet City Council - 06/30/200911:45 a.m. - Proclamation declaring "July 4th Big Bang Celebration 2009" Proclamation declaring the month of July 2009 as "Recreation and Parks Month" Commendation Certificate to Suzie Williams — Corpus Christi Military Ambassador Special Presentations by Legislative Delegation "At Your Service" Award, City Staff Recognition AGENDA CITY OF CORPUS CHRISTI REGULAR COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 1201 LEOPARD ST. CORPUS CHRISTI, TEXAS 78401 JUNE 30, 2009 10:00 A.M. PUBLIC NOTICE - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. Members of the audience will be provided an opportunity to address the Council at approximately 12:00 p.m. or at the end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state 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 inglas es limitedo, habra un interprete inglas- espahol en todas las juntas del Concilio para ayudarte. 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 Joe Adame to call the meeting to order. B. Invocation to be given by Reverend Dr. Allen Mosiman, Parkway Presbyterian Church. C. Pledge of Allegiance to the Flag of the United States. D. City Secretary Armando Chapa to call the roll of the required Charter Officers. Mayor Joe Adame Mayor Pro Tem Kevin Kieschnick Council Members: Chris N. Adler City Manager Angel R. Escobar Brent Chesney City Attorney Mary Kay Fischer Larry Elizondo, Sr. City Secretary Armando Chapa Priscilla Leal John Marez Nelda Martinez Mark Scott Agenda Regular Council Meeting June 30, 2009 Page 2 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) E. MINUTES: 1. Approval of Regular Meeting of June 23, 2009. (Attachment # 1) F. BOARDS & COMMITTEE APPOINTMENTS: (Attachment # 2) 2. * Food Service Advisory Committee G. EXPLANATION OF COUNCIL ACTION: For administrative convenience, certain of the agenda items are listed as motions, resolutions, or ordinances. If deemed appropriate, the City Council will use a different method of adoption from the one listed; may finally pass an ordinance by adopting it as an emergency measure rather than a two reading ordinance; or may modify the action specified. A motion to reconsider may be made at this meeting of a vote at the last regular, or a subsequent special meeting; such agendas are incorporated herein for reconsideration and action on any reconsidered item. H. CITY MANAGER'S REPORT: (NONE) I. CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been fumished with background and support material on each item, and/or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately unless requested by a Council Member or a citizen, in which event the item or items will immediately be withdrawn for individual consideration in its normal sequence after the items not requiring separate discussion have been acted upon. The remaining items will be adopted by one vote. CONSENT MOTIONS RESOLUTIONS ORDINANCES AND ORDINANCES FROM PREVIOUS MEETINGS: (At this point the Council will vote on all motions, resolutions and ordinances not removed for individual consideration.) 3. Motion approving the lease of a motor grader with Waukesha - Pearce Industries, Inc., of Corpus Christi, Texas for the total amount of $155,760, of which $6,490 is budgeted in FY 2008- 2009. The award is in accordance with Bid Invitation No. BI- 0134-09 and is based on best value. The term of the lease is for twenty -four months with an option to extend the lease for up Agenda Regular Council Meeting June 30, 2009 Page 3 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) to twelve additional months subject to the approval of the City Manager or his designee. The motor grader will be used by the Parks and Recreation Department. Funds have been budgeted by Parks and Recreation in FY 2008 -2009 and requested for FY 2009 -2010. (Attachment # 3) 4. Motion approving a supply agreement with Elster American Meter, of Cedar Park, Texas for approximately 7,000 gas meters in accordance with Bid Invitation No. BI- 0164 -09, based on low bid for an estimated annual expenditure of $363,300 of which $30,275 will be expensed in FY 2008 -2009. Funds in the amount of $6,055 have been budgeted in the Gas Department Operations budget and the remaining $24,220 has been budgeted in the Gas Capital Improvement Program (CIP) Fund. The term of the agreement will be for twelve months with an option to extend for up to two additional twelve -month periods, subject to the approval of the suppliers and the City Manager, or his designee. (Attachment # 4) 5. a. Resolution authorizing the City Manager, or designee, to execute an Interlocal Agreement between the City of Corpus Christi and Nueces County to establish terms for the sharing of the Edward Byrne Memorial Justice Assistance Grant (JAG) Program FY 2009 Local Solicitation Award. (Attachment # 5) b. Resolution authorizing the City Manager, or his designee, to submit a grant application in the amount of $256,634 to the U.S. Department of Justice, Bureau of Justice Assistance for funding eligible under the Edward Byrne Memorial Justice Assistance Grant (JAG) Program FY 2009 Local Solicitation Award. Fifty percent of the funds are to be distributed to Nueces County under the established Interlocal Agreement. Grant funds will be used by the Police Department to upgrade 215 public Safety radios to Project — 25 compliance; and authorizing the City Manager or his designee to apply for, accept, reject, alter or terminate the grant. (Attachment # 5) Agenda Regular Council Meeting June 30, 2009 Page 4 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 6. a. Resolution authorizing the City Manager or his designee to accept a grant of $132,328 from the Texas Department of State Health Services for renovation, supply and equipment expenses relating to a plan for responding to an act of terrorism and to execute all related documents. (Attachment # 6) b. Ordinance appropriating a grant of $132,328 from the Texas Department of State Health Services in the No. 1066 Health Grants Fund for renovation, supply and equipment expenses relating to a plan for responding to an act of terrorism. (Attachment # 6) 7. Motion approving the purchase of two Storage Area Network devices from Resonant Technology Partners of San Antonio, Texas for the storage of all City data located at City Hall and the Police Department including installation, data migration services and five years support and maintenance for $508,129.45. The purchase will be financed over a five year period with Key Government Finance, Inc. with annual payments of $111,534.58 ($557,672.90 total). Resonant Technology Partners is a State of Texas DIR GoDirect vendor. The purchase will extend combined useable storage capacity from 13 terabytes to 50.5 terabytes. (Attachment # 7) 8. Ordinance authorizing the resale of thirty (30) properties for $102,726 which were foreclosed upon for failure to pay ad valorem taxes, of which the City shall receive $9,166.02, plus $40,534.64 for partial payment of City paving and demolition liens. (Attachment # 8) 9. Motion authorizing the City Manager or his designee to execute a job order contract with Nuway International, Inc. of Corpus Christi, Texas in the amount of $77,234.33 for La Retama Central Library exterior building renovations. (Attachment # 9) J. PUBLIC HEARINGS: ZONING CASES: 10. Case No. 0509 -03 Roland & Robert Beck, d.b.a. South Texas R & R Rentals: A change in zoning from the "F -R" Farm -Rural District and "B -4" General Business District to "1 -2" Light Agenda Regular Council Meeting June 30, 2009 Page 5 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Industrial District resulting in a change of land use from vacant use to light industrial use on the property described as Hudson Acres Annex Lot 10, Block 1, generally located on the southside of Leopard Street, approximately 500 feet east of Main Drive and 1000 feet west of Rhew Road. (Tabled from 06/23/09) (Attachment # 10) Planning Commission and Staffs Recommendation: Approval of the "1 -2" Light Industrial District for the outdoor storage of equipment and the construction of metal buildings. ORDINANCE Amending the Zoning Ordinance, upon application by Roland and Robert Beck, d.b.a. South Texas R & R Rentals, by changing the Zoning Map in reference to Block 1, Lot 10, Hudson Acres Annex, from "F -R" Farm -Rural District and "B-4" General Business District to "1 -2" Light Industrial District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty; and providing for publication. K. REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS. AND ORDINANCES: 11. Resolution authorizing the City Manager, or his designee, to accept a grant froth-the Environmental Protection Agency in the amount of $400,000 for a three -year community -wide Brownfields Assessment Program. (Attachment # 11) 12. Resolution authorizing the City Manager or his designee to submit a competitive funding application to the U.S. Department of Housing and Urban Development in the amount of $8,060,000 for the Neighborhood Stabilization Program 2 under the American Recovery and Reinvestment Act of 2009 and to execute all related documents. (Attachment # 12) 13. Ordinance authorizing the issuance of "City of Corpus Christi, Texas, Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2009" in an amount not to exceed $8,500,000 for the purpose of financing costs associated with making permanent public improvements to Holly Agenda Regular Council Meeting June 30, 2009 Page 6 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Road, Bayfront Development Implementation Plan Phase I (Shoreline Realignment Phase 1), and the Rodd Field Public Improvement District; providing for the payment of said Certificates by the levy of an ad valorem tax upon all taxable property within the City and further securing said Certificates by a lien on and pledge of the Pledged Revenues of the Solid Waste System; providing the terms and conditions of said Certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said Certificates, including the approval and distribution of an official statement; authorizing the execution of a paying agent/registrar agreement and a purchase contract; complying with the requirements of the letter of representations with The Depository Trust Company; delegating the authority to the Mayor and certain members of the City staff to execute certain documents relating to the sale of the Certificates; enacting other provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. (Attachment # 13) 14. Resolution approving the establishment of the American Bank Center Arena Marketing /Co- Promotion Fund and the guidelines for the American Bank Center Arena Marketing /Co- Promotion Fund adopted by the Corpus Christi Business and Job Development Corporation. (Attachment # 14) 15. a. Motion to reconsider motions approved during the City Council meeting of June 23, 2009 regarding nominations to the new Ingleside Local Redevelopment Authority (LRA) Implementation Board of Directors and appointment to the Ingleside Local Redevelopment Authority (LRA) Planning Board of Directors. (Requires 2/3 vote for passage) (Attachment # 15) b. Motion nominating Mayor Joe Adame and Dr. Robert Ferguson to the new Ingleside Local Redevelopment Authority (LRA) Implementation Board of Directors and also appointing them to the Ingleside Local Redevelopment Authority (LRA) Planning Board of Directors. (Attachment # 15) Agenda Regular Council Meeting June 30, 2009 Page 7 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) L. PRESENTATIONS: Public comment will not be solicited on Presentation items. 16. Economic Development Department and Regional Economic Development Corporation (EDC) Status Updates (Attachment # 16) 17. Civil Lawsuits in Costly Graffiti Cases (Attachment # 17) 18. Third Quarter FY 2009 Health and Risk Management Claims Report (Attachment # 18) M. SPECIAL BUDGET PRESENTATION: Public comment will not be solicited on Presentation items. 19. Proposed FY 2009 -2010 Operating Budget: Internal Service, Special Revenue, and Debt Service Funds Overview. (Attachment # 19) 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: 1. MAKE A STATEMENT OF FACTUAL INFORMATION. 2. RECITE AN EXISTING POLICY IN RESPONSE TO THE I NQ U I RY. 3. ADVISE THE CITIZEN THAT THIS SUBJECT WILL BE PLACED ON AN AGENDA AT A LATER DATE. Agenda Regular Council Meeting June 30, 2009 Page 8 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 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. P. ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the City's official bulletin boaLd at the front entrance to City Hall, 1201 Leopard Street, at o7• p.m., on June 25, 2009. 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. Symbols used to highlight action items that implement council goals are on attached sheet. 1 MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting June 23, 2009 - 10:00 a.m. PRESENT Mayor Joe Adame Mayor Pro Tem Kevin Kieschnick Council Members: Chris N. Adler Brent Chesney Larry Elizondo, Sr. Priscilla Leal John Marez Nelda Martinez Mark Scott City Staff: City Manager Angel R. Escobar City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Adame called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Reverend Marcus Denson with Waves Christian Fellowship and the Pledge of Allegiance to the United States flag was led by Council Member John Marez. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. * * * * * * * * * *** Mayor Adame opened discussion on Item 17 regarding an appeal by Ronald A. Voss, Sr. of the decision of the Building Standards Board. Arnold Gonzalez, Jr. announced that his services were recently retained to represent Ronald A. Voss, Sr. on this appeal process and requested that the Council table the appeal by Mr. Voss to allow for time to review the files and further confer with City staff. Mr. Elizondo made a motion to table the appeal for three weeks. 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: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 17. POSTPONED UNTIL JULY 14, 2009 Addition, commonly known as 1502 Tarlton Street. * * * * * * * * * * ** Mayor Adame called for approval of the minutes of the regular Council meeting of June 16, 2009. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * ** Mayor Adame called for consideration of the consent agenda (Items 2 - 13). There were no comments from the public. Council members requested that Item 10 be pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: —1— Minutes — Regular Council Meeting June 23, 2009 — Page 2 MOTION NO. 2009 -171 Motion approving primary and secondary service agreements with the following companies in the following amounts for closed circuit television pipeline inspection services in accordance with Bid Invitation No. BI- 0139 -09 as amended, based on best value to Video Plumbing, Inc., of Corpus Christi as primary contractor and Shoreline Plumbing, Inc., of Corpus Christi as secondary contractor. Estimated annual expenditure of $331,640, of which $27,636.67 is budgeted in FY 2008 -2009. The term of the service agreements will be twelve- months with an option to extend for up to two additional twelve -month periods subject to the approval of the supplier and the City Manager or his designee. The service will be used by the Wastewater Department. Funds are budgeted in the Wastewater Department Operational Budget in FY 2008 -2009 and have been requested for FY 2009 -2010. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". 3. MOTION NO. 2009 -172 Motion approving the purchase of four (4) sport utility vehicles, three (3) pickup trucks and two (2) cargo vans from Philpott Motors Ltd., of Nederland, Texas for a total amount of $163,581. The award is made in accordance with the cooperative purchasing agreement with the Texas Local Government Cooperative. The vehicles will be used by the Engineering Services, Municipal Information Systems (MIS) and Wastewater Department. Funding is available in the Engineering Services Fund, Maintenance Services Fund and Municipal Information Systems (MIS) Fund in FY 2008 -2009. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". MOTION NO. 2009 -173 Motion approving the purchase of hardware, software, and services to expand the Coastal Bend Regional 800 MHz Public Safety Radio System from Dailey & Wells, of San Antonio, Texas based on sole source for a total expenditure of $330,000. Funds are available through the Port Security Grant. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 5.a. RESOLUTION NO. 028209 Resolution authorizing the City Manager or his designee to accept a $55,139 grant awarded by the Corporation for National and Community Service for Retired and Senior Volunteer Program (RSVP). The foregoing resolution was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 5.b. ORDINANCE NO. 028210 Ordinance appropriating a $55,139 grant from the Corporation for National and Community Service in the No. 1067 Parks and Recreation grants fund for the Retired and Senior Volunteer Program -2- Minutes — Regular Council Meeting June 23, 2009 — Page 3 An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez. Martinez, and Scott, voting "Aye ". 6.a. RESOLUTION NO. 028211 Resolution authorizing the City Manager or his designee to accept a $270,943 grant awarded by the Corporation for National and Community Service for the Senior Companion Program. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 6.b. ORDINANCE NO. 028212 Ordinance appropriating a $270,943 grant from the Corporation for National and Community Service in the No. 1067 Parks and Recreation grants fund for the Senior Companion Program. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 7. MOTION NO. 2009 -174 Motion authorizing the City Manager or his designee to execute a construction contract for the Base Bid and Additive Alternates 1 - 3 with Haas - Anderson Construction, Ltd. of Corpus Christi, Texas in an amount not to exceed $1,950,725.25 for the Corpus Christi International Airport Airfield Perimeter Road Improvements. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 8. MOTION NO. 2009 -175 Motion authorizing the City Manager or his designee to execute a construction contract with Bridges Specialties of Sandia, Texas in the amount of $280,227.50 for the Salt Flats Drainage System Improvements, Phase II, Sta. 17 +50 through Sta. 39 +20 for the Total Base Bid. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". MOTION NO. 2009 -176 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Contract for Professional Services with Bath Engineering Corporation of Corpus Christi, Texas in the amount of $430,355 for a restated amount of $454,355 for the O.N. Stevens Electrical Distribution Improvements for design, bid and construction phase services, and additional services. Minutes — Regular Council Meeting June 23, 2009 — Page 4 The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 11. MOTION NO. 2009 -178 Motion authorizing the City Manager or his designee to execute Change Order No. 8 to the construction contract with Haas - Anderson Construction, Ltd. of Corpus Christi, Texas in the amount of $3,096,975.60 for a net change order amount of $1,842,634 for a new contract price of $8,944,628.38 for the Street Overlays Project, Clusters 1, 3 and 4 to overlay Holly Road from Ayers Street to Rodd Field Road. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 12. MOTION NO. 2009 -179 Motion authorizing the City Manager, or his designee, to execute a Contract for Professional Services with RVE, Inc. of Corpus Christi, Texas in the amount of $534,830 for 2009 Capital Improvement Program (CIP) Mansheim Area Wastewater Improvements for preliminary design, design, bid, construction phase services, and additional services. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 13. ORDINANCE NO. 028213 Amending Sections 27B- 11(A)(11), and 27B- 12(B), Corpus Christi Zoning Ordinance relating to the certification of landscape plans; providing for penalties; and providing for publication. (First Reading 06/16/09) The foregoing ordinance was passed and approved on its second reading with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye". Mayor Adame opened discussion on Item 10 regarding the Laguna Shores Road Rehabilitation Project. Council Member Adler asked for an update on the project and the reason for the delay. Director of Engineering Services Pete Anaya stated that the project IS-awaiting the final permit approval from the U.S. Army Corps of Engineers and that staff anticipates receiving the permit within the next couple of weeks. Mr. Anaya added that the project has been impacted due to Hurricane Ike and the delay of the permit. Council Member Martinez spoke regarding prior council action and expressed concern on the construction costs. In response to Ms. Martinez, Mr. Anaya stated that the project has surpassed the bid costs timeframe by four to five weeks. Mr. Anaya provided a brief overview of the project description for the change order. Council Member Martinez asked that staff provide written information on the status of the permit from the U.S. Army Corps of Engineers. City Secretary Chapa polled the Council for their votes as follows: 10. MOTION NO. 2009 -177 Motion authorizing the City Manager or his designee to execute Change Order No. 1 to the construction contract with H &G Contractors of Corpus Christi, Texas, in the amount of $117,064.40 for a restated amount of $3,036,745.56 for the Laguna Shores Road Rehabilitation from Graham Road to Hustlin' Hornet Drive Project to undertake drainage improvements for the Triple Crown Road and Citation Drive Area. (Bond Issue 2004) —4— Minutes — Regular Council Meeting June 23, 2009 — Page 5 The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". * * * * * * * * * * * * * Mayor Adame referred to Item 14, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0509 -03, Roland & Robert Beck, d.b.a. South Texas R & R Rentals: A change in zoning from the "F -R" Farm -Rural District and "B-4" General Business District to "1 -2" Light Industrial District resulting in a change of land use from vacant use to light industrial use on the property described as Hudson Acres Annex Lot 10, Block 1, generally located on the southside of Leopard Street, approximately 500 feet east of Main Drive and 1000 feet west of Rhew Road. City Secretary Chapa stated that the Planning Commission and staff recommended approval of the "1 -2" Light Industrial District for the outdoor storage of equipment and the construction of metal buildings. Assistant Director of Development Services Faryce Goode -Macon referred to a powerpoint presentation including an area location map; the subject case area; 2007 aerial photo; the allowable uses for the "F -R" Farm Rural District, "B-4" General Business District, and the "1 -2" Light Industrial District; photos of the subject property; the existing land use map; the future land use map; and the Planning Commission and staff's recommendation. Mayor Adame called for comments from the audience. Jovita Gomez, 1538 Main Drive, spoke regarding blocking the alleyway between the subject property and the residential area; noise; and the use of the property. Victor Valdez, 1446 Main Drive, stated that the alley is used for fire and emergency uses. Vella Garza, 1702 Main Drive, spoke regarding drainage issues; the use of caliche; and increased traffic of large vehicles on Main Drive. An unidentified man, 1037 Airline, suggested putting a road between the alley and the residential neighborhood. Mr. Elizondo made a motion to close the public hearing, seconded by Mr. Scott, and passed. The following topics pertaining to this item were discussed: whether the property is currently platted; review of the surface drainage; if there is a dedicated alley between the subject property and the residential area; the utility easement; the right of the applicant to fence with the current zoning; the proposed use for the subject property; the planning commission's recommendation; existing, adjoining industrial property; limited truck size allowed in residential neighborhoods; whether people currently drive through the back of the residential property lines; fencing requirements for the proposed zoning; verifying that the applicant is not blocking the ingress and egress access; use of caliche and the impact to the residents; height restrictions; the amount of work completed by the applicant; the zoning for the property fronting Leopard Street; establishing a buffer between the subject property and residential area; access to the residential property; whether there is a drainage culvert along the side of the subject property; the buffers located in surrounding low density residential properties; and the site plan. Mr. Scott made a motion to zone the left side of Tract "B-4" and the right side of Tract "1 -2 ". The motion was seconded by Mr. Marez. A brief discussion ensued regarding the applicant's purpose for rezoning and the site plan. Mr. Scott withdrew his motion. -5- Minutes — Regular Council Meeting June 23, 2009 — Page 6 Ms. Martinez made a motion to table this zoning case for one week to allow the applicant to provide a site plan and information on the use of the property. The motion was seconded by Mr. Chesney. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 14. POSTPONED UNTIL JUNE 30, 2009 Texas R & R Rentals, by changing the Zoning Map in reference to Block 1, Lot 10, Hudson Council Member Kieschnick requested that the applicant provide information on the purpose for the rezoning and use of the property. * * * *** * * * * * ** Mayor Adame opened discussion on Item 15 regarding the City of Corpus Christi's Energy Management Program. Director of Intergovernmental Relations Rudy Garza and Assistant City Manager Oscar Martinez presented this item. Mr. Garza referred to a powerpoint presentation including an overview of the proposal; background information; energy efficiency goals, strategies, and financing; renewable energy development; fuel conservation; hybrid vehicles; green city program; and other considerations. Mr. Garza also provided a copy of an article from "Texas Monthly" regarding wind, solar energy, and bio- fuels. The following topics pertaining to this item were discussed: equipment standardization; whether the City has resolved the issues regarding the methane gas contract for the Elliot Landfill Gas to Energy project; if the City can currently purchase compressed natural gas (CNG) vehicles; opening the CNG station; the current cost to purchase a diesel truck; implementation of a CNG vehicle program; collaboration with other governmental entities; policy changes; next steps; categorization of projects; developing a "Green City Group" that reports to the City Council on a quarterly basis; and network with the community. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 15. RESOLUTION NO. 028214 Resolution adopting the City of Corpus Christi's Energy Management Program to reduce energy and fuel consumption, increase energy efficiency, develop renewable energy initiatives, and implement a Green City Program. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". Mayor Adame called for a brief recess to present proclamations and listen to public comment. ************* -6-- Minutes — Regular Council Meeting June 23, 2009 — Page 7 Mayor Adame called for petitions from the audience. Douglas Schaffer, 13926 Dasmarinas, spoke regarding recycling. Sheila Cudd, 7106 Ft. Collins, spoke regarding water issues in South Texas due to the proposed power plants including the Las Brisas Plant. Ms. Cudd stated that the City needs to look at water conservation. Ron Hamilton, 3636 S. Alameda, asked the Council to hold a public hearing on the Las Brisas plant. Richard Taylor, 626 Meadowbrook, spoke regarding the recycling of glass products. Wilson Wakefield, 6026 Killarmet, spoke in opposition to the Las Brisas plant. Cohn Sykes, spoke regarding global warming and carbon dioxide. Mr. Sykes also spoke in opposition to the Las Brisas plant. Mark Minutaglio, 338 44th Street, thanked the Council for the job they are doing and spoke regarding pride and beautification of the City; the Clean City Coordinator position; and the Recycle Bank Program. Abel Alonzo, 1701 Thames, spoke regarding the relocation of the Whataburger headquarters and asked the public to continue to have an open mid on the Las Brisas issue. ************* Mayor Adame referred to Item 18 regarding a presentation on the Proposed FY2009 -2010 Operating Budget: Enterprise Fund Overview. Assistant City Manager Oscar Martinez referred to a powerpoint presentation of the utility funds including the summary of fund balances; the summary of working capital; major utility capital improvements projects; annual utility debt service; customer growth rate; water consumption; cost of purchased water; water fund full time equivalents; water fund major revenues and expenditures; analysis of sample water bills; the storm water utility definition and example of revenue neutrality; a sample bills detailing the impact of the storm water utility on Community Development Block Grant (CDBG) area residences; and sample residential and commercial billing. Mr. Martinez also provided a copy of the Storm Water Utility Policy Manual. The following topics pertaining to this item were discussed: the impact of the storm water utility on CDBG area on the southside; the definition of revenue neutral; the reason for developing the storm water utility; if there are safeguards in place that will ease the concern of citizens to address that the storm water utility will not create additional revenues; the increase of the transfer to utility system debt service fund in FY2010; and the current water department utilities budget. Mayor Adame asked that the budget presentation be delayed for consideration of Item 16 regarding the nominations to the Ingleside Redevelopment Authority. * * * *** * * ***** Mayor Adame opened discussion on Item 16 regarding the nomination to the Ingleside Local Redevelopment Development Authority Board of Directors. Mayor Adame stated that the City of Ingleside has reestablished the LRA. Mr. Adame explained that the purpose of the LRA is to plan and implement the redevelopment of the 155 acre surplus property— Naval Station Ingleside facility. Mr. Adame added that the LRA will be governed by eleven (11) members with two (2) nominations requested by the City of Corpus Christi. Mr. Adame stated that he recommended the appointment of Council Member Brent Chesney and Dr. Robert Furgason as the city nominees. Mr. Kieschnick made a motion to nominate Dr. Robert Furgason and Council Member Brent Chesney to the new Ingleside Local Redevelopment Authority (LRA) implementation Board of Directors. The motion was seconded by Ms. Adler. There were no comments from the audience. The foregoing motion was passed and approved with the following vote: -7- Minutes — Regular Council Meeting June 23, 2009 — Page 8 16. MOTION NO. 2009 -180 Motion nominating Dr. Robert Furgason and Council Member Brent Chesney to the new Ingleside Local Redevelopment Authority (LRA) Implementation Board of Directors. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". Council Member Martinez spoke regarding the City's representatives to the LRA planning Board of Directors. Mike Hummel!, 555 N. Carancuha, stated that the planning LRA entity is still in existence until the Office of Economic Adjustment recognizes the newly created Defense Base Development Authority. A brief discussion was held on whether to replace Henry Garrett's position on the LRA planning board until the new entity is recognized. Mr. Elizondo made a motion to appoint Council Member Brent Chesney to replace Henry Garrett on the Ingleside Local Redevelopment Authority (LRA) planning Board of Directors. The motion was seconded by Mr. Kieschnick. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". Council Member Scott stated that he was disappointed that Mayor Adame would not be serving on the LRA board because his leadership would have brought a great benefit to the community. Rosie Collin, Project Manager for the LRA, expressed her gratitude to the Council for agreeing to be part of the LRA. Mayor Adame returned to discussion on Item 18 regarding a presentation on the Proposed Fy2009 -2010 Operating Budget: Enterprise Fund Overview. Assistant City Manager Oscar Martinez continued his presentation on the utility funds including the storm water fund full time equivalents, major revenues and expenditures; the utility rate structure summary; gas full time equivalents, major revenues and expenditures; gas consumption; wastewater full time equivalents, major revenues and expenditures; and a wastewater sample bill. Assistant Director of Budget Eddie Houlihan provided a brief overview of the revenues and expenditures by function for the Airport, Golf, and Marina fund and the budget calendar. The following topics pertaining to this item were discussed: the storm water utility budget; the correlation between natural gas and diesel; the reasons that the golf fund has not been performing well; closure of the golf courses; concessions at the golf courses; when the repairs will be completed at the golf courses; marketing of the boat slips; debt services for the bonds on the boat slips; the cost of living adjustment (COLA) increase in the water fund; the Airport Industrial Park (International Business Center) as a potential revenue source; golf fee increases; developing a zero based budget and implementation; whether departments outside City Hall budget for utilities; and changing the budget fiscal year. Council Member Scott requested background information on the decision for the cost of living adjustment in the water fund. Council Member Elizondo directed staff to provide information on identifying a department to begin a zero base budget for next fiscal year. Council Member Chesney -8- Minutes — Regular Council Meeting June 23, 2009 — Page 9 asked staff to include an agenda item on the development of a zero base budget and changing the fiscal year. • * • * * * * ♦ * * * * * There being no further business to come before the Council, MayorAdame adjourned the Council meeting at 2:38 p.m. on June 23, 2009. * *** * * * * * ** ** -9- 2 a. FOOD SERVICE ADVISORY COMMITTEE — Three (3) vacancies with terms to 6- 24-11 and 6 -24 -12 representing the following categories: 2 -Food Industry and 1- Community at Large. DUTIES: The functions will be to advise the Director of Health on application of ordinances regarding food and food establishments, review the permit fees annually to ensure the cost of the program is returned to the City, and to conduct hearings pursuant to the sections of the ordinance relating to revocations and to make written recommendations to the City health officer whether to revoke or suspend a food manager's permit, pursuant to Art. 19 -84. COMPOSITION: Seven (7) members. The membership shall consist of four (4) local food managers from the food service or food processing industries and three (3) persons from the community at large. Members of the committee shall be appointed by the City Council for staggered terms, so that at least one industry representative and one community member are reappointed each year. ORIGINAL MEMBERS TERM APPTD. DATE Joshua Hinojosa (Food Industry) 6 -24 -11 2 -12 -08 * * * * *D.W. Haven (Food Industry), Chair 6 -24 -09 6 -10 -03 * *Michael A. Garcia (Food Industry) 6 -24 -09 6 -13 -06 Dr. Nina Sisley (Community at Large) 6 -24 -11 6 -14 -05 ** *Cheri Sperling (Community at Large) 6 -24 -11 6 -14 -05 Gabriel G. Hernandez (Food Industry) 6 -24 -10 6 -19 -07 Beverly Rogers (Community at Large) 6 -24 -10 7 -13 -04 (The Food Service Advisory Committee is recommending the new appointments of Lisa Pollakis (Food Industry) and Jack Baker (Food Industry). INDIVIDUALS EXPRESSING INTEREST Isabel Aguilar Jack Baker Senior, West Oso High School. Activities include: President of Communities in Schools Leadership Club and Molina Neighborhood Center. (Community at Large) (6- 2-09) Owner, B & J's Pizza and J.A.K.C. Incorporated. Attended University of Michigan. Activities include: Volunteer for Ark Assessment Center, Public Broadcasting Committee, Board of Governors — Corpus Christi Country Club and Volunteer and Member of Catholic Dioceses. Recipient of Best of Best Awards from Caller Times. (Food Industry) (4- 20 -09) Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —13— Robert Boyle Sylvia R. Cantu John Ivers Edward Kownslar Carlos R. Moreno Lisa Pollakis Ted Schroeder Doan Shockley Retired Sales/Manager /Training, Sysco Foods. Received BBA from Stephen F. Austin. Activities include: Boy Scouts of America Troop 2 and Bayfest. (Community at Large) (6- 12 -09) Owner, Texas Sno -Pro. Formerly Records Management Coordinator /Supervisor for Nueces County. Recipient of Outstanding Awards from Texas State Library and South Texas State Associate Records Management Association. (Food Industry) (5- 28 -09) Retired Group Director, Frito -Lay Research and Development. Received BS, MS and Ph.D in Food Science and Technology from Cornell University. Activities include: Mediator for Corpus Christi Dispute Resolution Center. (Community at Large) (6- 23 -09) Associate Director, Mary and Jeff Bell Library, Texas A &M University - Corpus Christi. Received Bachelor's Degree from University of Kansas, Master's Degree from University of North Texas, and Master's Degree from Texas A &M University- Corpus Christi. Activities include: Board of' Directors - Family Counseling Services of Corpus Christi, Texas Library Association and American Library Association. (Community at Large) (10 -9 -08) Food Service Manager, Stripes #2120. Activities include: LULAC Council #1. Recipient of LULAC Man of the Year. (Food Industry) (2- 24 -09) Restaurant Management/Instructor, Del Mar College. Co- Owner of Vick's Famous Hamburgers. Received BA from Pennsylvania State University and MS from University of North Texas. Certified ServSafe Instructor. Activities include: President of Coast Bend Restaurant Association, Greater Corpus Christi Hospitality Association Board Member, and Philoptocos Society-St. Nicholas Greek Orthodox Church. (Food Industry) (4- 30 -09) Owner /Adminstrator/Instructor, Gulf Coast Food Manager Certification Program. Received Degree in Business Management from University of Kentucky. Past President of Elizabeth Town, Kentucky Jaycees and Lions. (Food Industry) (4- 23 -09) Director of Restaurant Services, Stripes. Received BS from the University of Houston and A.O.S from The Culinary Institute of America -Hyde Park. Former Instructor at Conrad N. Hilton College at University of Houston. (Food Industry) (6 -8 -09) — 1 4— 3 Requested Council Action 06/30/09 Alternate Date 07/7/09 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the lease of a motor grader with Waukesha - Pearce Industries, Inc., Corpus Christi, Texas for the total amount of $155,760, of which $6,490 is budgeted in FY08 -09. The award is in accordance with Bid Invitation No. BI- 0134 -09 and is based on best value. The term of the lease is for twenty-four months with an option to extend the lease for up to twelve additional months subject to the approval of the City Manager or his designee. The motor grader will be used by the Park & Recreation Department. Funds have been budgeted by Park and Recreation in FY08 -09 and requested for FY09 -10. *********************************************************** * * * * * * * * * * * * * * * * * * * * * ** * * * * * * ** Purpose: Bid Invitation Issued: Bids Received: Award Basis: Funding: Mic' ae1 : arrera The motor grader will be used by the beach operations division of the Park & Recreation Department for maintaining the beach and beach roadways. The decision to lease the motor grader in lieu of purchasing the equipment was made due to the harsh conditions present at the beach. The lease provides for a full maintenance contract that will keep the unit operational throughout the term of the lease. At the end of the two year lease, the City will either exercise its option to extend the lease or establish a new lease for replacement equipment. Seventeen Four Best Value The evaluation team, comprised of team members from Park and Recreation and Purchasing, developed a matrix of the evaluation criteria. The evaluation criteria components set forth in the proposal included: (1) Rental Agreement 25 %, (2) Full Maintenance Agreement 25 %, (3) Age of Unit and Hours of Use 10 %, (4) Bidders Profile and Qualifications 10 %, and (5) Cost 30 %. The evaluation team reviewed each RFP Proposal response and completed the evaluation matrix. The resulting matrix prioritized each vendor based on the point value assigned for each criterion component in the evaluation matrix. Vendor rankings based on this scoring method are shown in the attached evaluation matrix. As a result of the evaluation, the team has selected Waukesha - Pearce Industries, Inc., as the best valued supplier for this opportunity. A bid received from H & V Equipment, Corpus Christi, Texas has been deemed as non- responsive for failure to meet specification requirements regarding the year model of the motor grader. Park & Recreation 530180- 1020 -12940 FY08 -09 $6,490 Annual ding will be requested during each of the following budget years. The g mg contract is contingent upon all future budget appropriations. Assistant Director of Financial Services 826 -3169 mikeb @cctexas.com —1 7 — CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: MARIA GARZA COUNCIL DATE: JUNE 30, 2009 SUMMARY EVALUATION MATRIX BID INVITATION NO. BI- 0134 -09 Lease of Motor Grader - 24 Months Waukesha Pearce Hertz Equipment Red Dog Rental Corpus Christi, TX Corpus Christi, TX Corpus Christi, TX Evaluation Criteria Maximum Points Points Awarded Points Awarded Points Awarded Rental Agreement 25 points 25 12.5 25 Full Maintenance Agreement 25 points 25 25 25 Age of Unit and Hours of use 10 points 5 8.1 2 Bidders Profile & Qualifications 10 points 10 5 0 Pricing 30 points 29.58 30 24.27 Score 94.58 80.6 76.27 Annual Cost Two Year Cost $77,880.00 $155,760.00 $76,800.00 $153,600.00 $94,920.00 $189,840.00 A bid received from H & V Equipment, Corpus Christi, Texas, has been deemed as non - responsive for failure to meet the specification requirement regarding the year model of the motor grader. -18- 4 Requested Council Action: 6/30/09 Alternate Council Date: 7/7/09 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving a supply agreement with Ester American Meter, Cedar Park, Texas for approximately 7,000 gas meters in accordance with Bid Invitation No. BI- 0164 -09, based on low bid for an estimated annual expenditure of $363,300.00 of which $30,275.00 will be expensed in FY08 /09. Funds in the amount of $6,055.00 have been budgeted in the Gas Department Operations budget and the remaining $24,220.00 has been budgeted in the Gas CIP Fund. The term of the agreement will be for twelve months with an option to extend for up to two additional twelve -month periods, subject to the approval of the suppliers and the City Manager, or his designee. BACKGROUND: Purpose: The Gas Department installs these meters to record the amount of natural gas used by customers. The meters will be used for the Automated Meter Reading (AMR) Project. The meters will be capable of transmitting customer consumption of gas electronically via the City's Wi -Fi network. The City is currently finishing out the fourth year of the scheduled five year AMR rollout. As of June 11, 2009, the City has converted 99,629 meters to the automated read system. This is approximately 70% of the 147,554 meters that are planned to be converted by July 31, 2010. Bid Invitations Issued: 11 Bids Received: 2 Price Analysis: When compared to the previous contract for AMR compatible meters, pricing has remained stable. Award Basis: Low Bid Funding: GAS DEPARTMENT FY08/09 520150- 4130 -34130 $6,055.00 GAS CIP FUND —CPP 550910- 4552- 200466 TOTAL FY08 /09 Michael Barren Assistant Director of Financial Services 826 -3169 mikeb @cctexas.com —21— 24,220.00 $30,275.00 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GABRIEL MALDONADO COUNCIL DATE: June 30, 2009 BID TABULATION 13I- 0164 -09 GAS METERS ELSTER AMERICAN EQUIPMENT CONTROLS CEDAR PARK, TEXAS HOUSTON, TEXAS Item Description Qty Unit Unit Total Price Price Unit Price Total Price 1. 200 cu. ft. meter, 1" AMR Compatible 7,000 each AWARD TOTAL: $51.90 $363,300.00. $363,300.00 $59.70 $417,900.00 N N 5 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 06/30 /2009 AGENDA ITEM: A. Resolution authorizing the City Manager, or designee, to execute an interlocal agreement between the City of Corpus Christi and Nueces County to establish terms for the sharing of the Edward Byrne Memorial Justice Assistance Grant (JAG) Program FY 2009 Local Solicitation Award B. Resolution authorizing the City Manager, or designee, to submit a grant application in the amount of $256,634 to the U.S. Department of Justice, Bureau of Justice Assistance for funding eligible under the Edward Byrne Memorial Justice Assistance Grant (JAG) Program FY 2009 Local Solicitation Award 50% of the funds to be distributed to Nueces County under the established interlocal agreement. Grant funds will be used by the Police Department to upgrade 215 public safety radios to Project 25 compliance, and authorizing the City Manager or his designee to apply for, accept, reject, alter, or terminate the grant. ISSUE: The Department of Justice provides funding opportunities each year in an effort to reduce crime and improve public safety through various methods, including the procuring of equipment, technology, and other material directly related to basic law enforcement functions. REQUIRED COUNCIL ACTION: Approval of the interlocal agreement and approval to submit the grant application. FUNDING: There is no match required of the grant. Funds are available for a 4-year period beginning 10/01/2009 (the first fiscal year of the appropriation). CONCLUSION AND RECOMMENDATION: Staff recommends submission of the grant application and approval of the interlocal agreement. Attachments —25— M. J. Walsh Acting Chief of Police mike @cctexas.com 886 -2605 BACKGROUND INFORMATION A. Under the Justice Assistance Grant (JAG) (previously Local Law Enforcement Block Grant LEBG), we have been declared a disparate jurisdiction and have agreed to split the funds 50/50 with Nueces County. A disparate allocation occurs when a constituent unit of local government is scheduled to receive one and one half times more (four times more for multiple units of local government) than another constituent unit(s), while the other unit of local government bears more than 50% of the costs of prosecution or incarceration that arise for Part 1 violent crimes reported by the geographically constituent unit(s). Jurisdictions certified as disparate must submit a joint application for the aggregate of funds allocated to them, specifying the amount of the funds that are to be distributed to each of the units of local government and the purposes for which the funds will be used. When beginning the JAG application process, a Memorandum of Understanding (MOU) must be completed, signed, and faxed to OJP, indicating who will serve as the applicant/fiscal agent for the joint funds. The City and County staff met and agreed that the City will serve as the lead agency, and the Nueces County Commissioners Court approved the interlocal agreement as well as proposed expenditures on June 17, 2009. B. JAG funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice. With this award, the program has provided a total of $4,724,086 in grant funds since 1996. The funds have been used to purchase backbone equipment for the Mobil Data/Automated Vehicle Location project, police package vehicles, unmarked police units, SWAT equipment, Bomb squad equipment, radios, digital/video cameras, radars, computer hardware /software, radio /microwave /computer system upgrades, a mobile police substation, polygraph instrument, and other police equipment. The Police Department proposes to use the funds to upgrade 215 public safety radios to P25 compliance. The Texas Statewide Communications Interoperability Plan (SCIP) — adopted by the Governor's Office on 1126/07 and approved by U.S. Dept. of Homeland Security on 4/4/08, requires Texas public safety agencies to be fully "Project 25 standards -based shared systems" (P25) compliant by January 1, 2015, or risk losing federal and state grant funding. The 700 MHz band has been selected as the state wide interoperability frequency. The chart below details the progress towards P -25 compliance and the amount of funds needed by 2015. Grant name Funding Match Description Port Security 2008 - awarded $ 161,250.00 $ 73,750.00 Upgrade radios to 700 MHz PSIC Original - awarded $ 57,946.00 $ 19,316.00 Upgrade radios to 700 MHz PSIC Supplemental - awarded $ 400,000.00 $100,000.00 In conjunction with Nextel Rebanding Project, upgrade 1180 public safety radios to 700 MHz JAG - State - pending $ 250,000.00 $ - Upgrade radio switch to 700 MHz JAG - Local - pending $ 61,682.00 $ - Upgrade 100 radios to P25 compliance JAG - regular - pending $ 128,317.00 $ - Upgrade 215 public safety radios to P25 compliance TOTAL $1,059,175.00 $193,066.00 Additional funds needed to meet Project 25 compliance by 2015 - will apply for grant funds over the next 5 years $ 519,000.00 865 radios @ $600 to upgrade to P25 compliance Nueces County proposes to utilize the'r share of the JAG funds to fund a Drug Prosecutor in the District Attorney's office and other law enforcement equipment. -26- RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND NUECES COUNTY TO ESTABLISH TERMS FOR THE SHARING OF THE EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM FY 2009 LOCAL SOLICITATION AWARD. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager, or designee, is authorized to execute an interlocal agreement between the City of Corpus Christi and Nueces County to establish terms for the sharing of the Edward Byrne Memorial Justice Assistance Grant (JAG) Program FY 2009 Local. Solicitation Award. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED AS TO FORM: June 18, 2009 T. Trisha -Plang Assistant City Attorney For City Attorney Resol- IntAg- BymeAwd 2.doc Joe Adame Mayor —27— Corpus Christi, Texas of , 2009 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla Leal John E. Marez Nelda Martinez Mark Scott Resol - IntAg - ByrneAwd 2.doc —28— 2 RESOLUTION AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO SUBMIT A GRANT APPLICATION IN THE AMOUNT OF $256,634 TO THE U.S. DEPARTMENT OF JUSTICE, BUREAU OF JUSTICE ASSISTANCE FOR FUNDING ELIGIBLE UNDER THE EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM FY 2009 LOCAL SOLICITATION AWARD 50% OF THE FUNDS TO BE DISTRIBUTED TO NUECES COUNTY UNDER THE ESTABLISHED INTERLOCAL AGREEMENT. GRANT FUNDS WILL BE USED BY THE POLICE DEPARTMENT TO UPGRADE 215 PUBLIC SAFETY RADIOS TO PROJECT 25 COMPLIANCE, AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO APPLY FOR, ACCEPT, REJECT, ALTER OR TERMINATE THE GRANT. THEREFORE, 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 $256,634 to the U.S. Department of Justice, Bureau of Justice Assistance for funding eligible under the Edward Byrne Memorial Justice Assistance Grant (JAG) Program FY 2009 Local Solicitation Award 50% of the funds to be distributed to Nueces County under the established interlocal agreement. Grant funds will be used by the Police Department to upgrade 215 public safety radios to Project 25 compliance. SECTION 2. The City Manager, or his 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 U.S. Department of Justice, Bureau of Justice Assistance funds, the City of Corpus Christi assures that the funds will be returned to the U.S. Department of Justice, Bureau of Justice Assistance in full. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: June 18, 2009 By: T. i'risha DEng Assistant City Attorney For City Attorney Joe Adame Mayor —29— Corpus Christi, Texas of , 2009 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla Leal John E. Marez Nelda Martinez Mark Scott —30— 2 6 AGENDA MEMORANDUM City Council Action Date: June 30 2009 AGENDA ITEM: ITEM A: RESOLUTION AUTHORIZING THE CITY MANAGER OR DESIGNEE TO ACCEPT A GRANT OF $132,328 FROM THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES FOR RENOVATION, SUPPLY AND EQUIPMENT EXPENSES RELATING TO A PLAN FOR RESPONDING TO AN ACT OF TERRORISM AND TO EXECUTE ALL RELATED DOCUMENTS. ITEM B: ORDINANCE APPROPRIATING A GRANT OF $132,328 FROM THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES IN THE NO. 1066 HEALTH GRANTS FUND FOR RENOVATION, SUPPLY AND EQUIPMENT EXPENSES RELATING TO A PLAN FOR RESPONDING TO AN ACT OF TERRORISM; AND DECLARING AN EMERGENCY. ISSUE: The Department of State Health Services (DSHS) has awarded a grant in the amount of $132,328 to renovate the laboratory beginning June 1, 2009, through November 30, 2009. This grant will fund the renovation and the purchase of equipment to be used in performance of their obligated duties as a member of the Laboratory Response Network (LRN) for Bioterrorism and Emergency Response Preparedness. This will enhance the laboratory's ability to respond to future biological and chemical outbreaks or threats to our community. REQUIRED COUNCIL ACTION: Acceptance of the grant and appropriation of funds. PREVIOUS COUNCIL ACTION: Council approved funding FY08 -09. FUNDING: There is no match funding required by the city. CONCLUSION AND RECOMMENDATION: Recommend City Council to approve the contract and appropriate funding. AP H Annette Rodriguez, —33— Acting Director of Public Health Ann.: MAP fiThrrfavne rnm BACKGROUND INFORMATION This $132,328 of discretionary funding supplements our current contract with the Department of State Health Services allowing us to maintain our laboratory at a level commensurate with the performance of our obligated duties as a member of the Laboratory Response Network for Bio- terrorism and Emergency Response Preparedness. The funding is dedicated to renovations and structural improvements in areas of the laboratory needing attention, as well as the purchase of equipment which will improve the ability of the lab to test for agents of bio- terrorism. The funding will also better enable the laboratory to support the Environmental Health Division with food -borne illness outbreaks. The contract period is from 6/1/09 - 11/30/09, and funds are being awarded to cover planning, design, equipment and supplies. This contract requires no matching funds. -34- RESOLUTION AUTHORIZING THE CITY MANAGER OR DESIGNEE TO ACCEPT A GRANT OF $132,328 FROM THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES FOR RENOVATION, SUPPLY AND EQUIPMENT EXPENSES RELATING TO A PLAN FOR RESPONDING TO AN ACT OF TERRORISM AND TO EXECUTE ALL RELATED DOCUMENTS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager or his designee is authorized to accept a grant of $132,328 from the Texas Department of State Health Services for renovation, supply and equipment expenses relating to a plan for responding to an act of terrorism and to execute all related documents. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor APPROVED AS TO FORM: June 15, 2009 eborah Walther Bro Assistant City Attorney For City Attorney Corpus Christi, Texas -35- Corpus Christi, Texas day of , 2009 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla G. Leal John E. Marez Nelda Martinez Mark Scott -36- Page 1 of 2 ORDINANCE APPROPRIATING A GRANT OF $132,328 FROM THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES IN THE NO. 1066 HEALTH GRANTS FUND FOR RENOVATION, SUPPLY AND EQUIPMENT EXPENSES RELATING TO A PLAN FOR RESPONDING TO AN ACT OF TERRORISM; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. A grant of $132,328 from the Texas Department of State Health Services is appropriated in the No. 1066 Health Grants Fund for renovation, supply and equipment expenses relating to a plan for responding to an act of terrorism. 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 , 2009. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor APPROVED AS TO FORM: June 15, 2009 orah Walther Brow ssistant City Attorney For City Attorney Corpus Christi, Texas -37- Page 2 of 2 Corpus Christi, Texas day of , 2009 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, Joe Adame Mayor Council Members The above ordinance was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla G. Leal John E. Marez Nelda Martinez Mark Scott -38- 7 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: June 30,2009 AGENDA ITEM: Motion approving the purchase of two Storage Area Network devices from Resonant Technology Partners of San Antonio, TX for the storage of all City data located at City Hall and the Police Department including installation, data migration services and five years support and maintenance for $508,129.45. The purchase will be financed over a five year period with Key Government Finance, Inc. with annual payments of $111,534.58 ($557,672.90 total). Resonant Technology Partners is a State of Texas DIR GoDirect vendor # DIR -SDD -252. The purchase will extend combined useable storage capacity from 13 terabytes to 50.5 terabytes. ISSUE: The current Storage Area Network devices at both City Hall and the Police Department have reached end of life cycle by the manufacturer. Most components of the storage area networks are no longer being manufactured and additional capacity cannot be added to accommodate the continued growth of electronic data. Lack of available storage has negative effects on current support activities as well as planned projects, particularly those that require large amounts of storage, such as in -car video. REQUIRED COUNCIL ACTION: City Council approval is required for all purchases over $50,000 PREVIOUS COUNCIL ACTION: On December 11, 2001 City Council approved purchase of a storage area network at City Hall. On February 25, 2003 City council approved purchase of storage area networks for City Hall and Police Department. CONCLUSION AND RECOMMENDATION: Staff recommends approval as presented. Attachments —41— Michael Armstrong' Director of MIS MichaelAr@cctexas.com 826 -3735 BACKGROUND INFORMATION The existing Storage Area Network (SAN) devices were installed at City Hall in 2001 and the Police Department in 2003. Due to their age these storage devices are past the manufacturer's life cycle and parts are no longer being manufactured. Each has been expanded a number of times over the years to accommodate the growth of the City's electronic data and are now at maximum capacity. Advancements in technology have made the cost of replacing these devices lower than the annual support currently paid. The process to acquire new SAN devices was initiated through issuance of a Request for Quotes to twelve vendors listed on the Texas DIR contract as SAN sellers or resellers of which eight replied. Selection was made by a team of five individuals who thoroughly reviewed the functionality and reliability of each solution to determine which best meets the City's needs for reliability, flexibility, and manageability. The selected solution from Resonant Technology Partners (Xiotech) will: Allow real -time mirroring of Police and Courts data on the City Hall SAN, providing additional safety and greater flexibility in accessing that data from numerous locations. • Provide ease of management, allowing MIS to assign that responsibility to a lower -level technician on a part-time basis. • Allow additional storage to be added easily up to a level of 1,000 terabytes. • Allow storage assets to be geographically separated but managed from a single store. • Allow MIS and Police to continue a server virtualization project that will allow us to reduce the number of physical servers in the data center by approximately 100. • Develop test environments for application changes. • Develop advanced reporting and analytical capabilities. • Provide approximately 31% reduction in electrical usage Combined maintenance charges for our existing units are $235,000 per year. Lease payments for this acquisition will be $111,534.58 per year, a difference of $123,465.42 per year. This represents a reduction of $617,327.10 over the term of the lease. Financing will be through Key Government Finance for five years at 4.88% interest with annual payments of $111,534.58. Total payments over five years will be $557,672.90. Based on current plans and timelines, one (1) payment would be required during the current fiscal year. Funds for this payment are available in the current MIS budget. Funds for next year have been included in the MIS budget proposal. Funding for subsequent years is subject to Council approval. —42— CISCO Key Government Finance, Inc. 1000 South McCaslin Boulevard Superior, CO 80027 -9456 Wednesday, June 10, 2009 City of Corpus Christi MIS Director and CIO, Michael Armstrong 1201 Leopard St. Corpus Christi, TX 78401 Re: Key Government Finance, Inc. Property Schedule No. 3 Dear Mr. Armstrong: Enclosed, please find two (2) sets of financing documents for your review and execution. (If these documents were emailed to you, please print out two (2) sets.) Execute both sets and return all of the originals to my attention. The original sets of the executed documents are required prior to funding your transaction. To expedite the return of these documents, please overnight them to me using Key Government Finance's FedEx account #308222926, and send to: KEY GOVERNMENT FINANCE, INC. ATTN: SUZANNE WAGNER 1000 S. MCCASLIN BLVD, SUPERIOR, CO 80027. All fully executed documents must be returned no later than Wednesday, June 24"', 2009; otherwise, the transaction may be subject to re-pricing. Only the person with Signing Authority should execute the documents. For verification of original documents, please execute in blue ink. Upon closing, Key Government Finance will return a fully executed original set for your files. Please refer to the enclosed Document Checklist when preparing the documents. Executed documents required for funding are: 1. Property Schedule No. 3 2. Property Description and Payment Schedule (Exhibit 1) 3. Lessee's Counsel's Opinion (Exhibit 2) 4. Lessee's Certificate (Exhibit 3) 5. Payment of Proceeds Instructions (Exhibit 4) 6. Acceptance Certificate (Exhibit 5) 7. Bank Qualification and Arbitrage Rebate (Exhibit 6) 8. Certificate of Insurance — Required prior to funding. 9. Notification of Tax Treatment. 10. 8038 -G IRS form with Report Number filled in — Original required to be submitted to the IRS at funding, which we will submit on your behalf. 11. Invoicing Instructions — Required in order to ensure that invoices are directed to the proper area in your organization. 12. Escrow Agreement 13. First Payment Please contact me at 720- 304 -1419 with any questions or concerns you may have. Sincerely, Suzanne Wagner Account Manager KEYCORP CONFIDENTIAL - This is counterpart # of manaa4ZXecuted counterparts. Only counterpart # 1 constitutes chattel paper DOCUMENTATION CHECKLIST ❑ Property Schedule 3• ❑ Property Description and Payment Schedule - Exhibit 1 ❑ Lessee's Counsel's Opinion - Exhibit 2. Exhibit 2 is the standard legal opinion used by Key Government Finance, Inc.. This opinion will need to be processed by your attorney on their letterhead. Your attorney will want to review the Lease /Purchase Agreement. ❑ Lessee's Certificate - Exhibit 3. Please fill in the date of the meeting of the governing body, referenced in section 1. We would also like a copy of those minutes or board resolutions for our files. ❑ Payment of Proceeds Instructions - Exhibit 4. This is the Vendor payment information. ❑ Acceptance Certificate - Exhibit 5. The date of Acceptance will need to be filled in with the date the equipment is installed and accepted. ❑ Bank Qualification and Arbitrage Rebate - Exhibit 6 ❑ Request for Certificate of Insurance — Please fill out the form and fax it to your insurance company. The Insurance Certificate is required prior to funding. ❑ Notification of Tax Treatment ❑ 8038 -G - The purpose of this form is to report to the IRS that we have completed a tax - exempt financing. Per the Internal Revenue Service you are required to fill in the Report Number information for Line 4 (the form included in your package is an 8038 -G). "We must have this information in order to complete your financing.. ** 8038 -G Line 4. After the preprinted 3, enter two self- designated numbers. Number reports consecutively during any calendar year (e.g., 334, 335, etc.). ❑ Invoicing Instructions — The information you provide enables us to invoice you correctly. ❑ Escrow Agreement Please keep copies of Exhibit A (Form of Requisition of Costs of Property) and Schedule 1 (Disbursement • Schedule). When you are ready to disburse funds from Escrow, you will need to sign and fill in both Exhibit A and Schedule 1. Along with those 2 forms, we will need copies of invoices. Exhibit 5 (Acceptance Certificate) will need to be filled out when the project is complete and it is your final payment request. ❑ Invoice for 1e1 Payment *The items above marked with an asterisk require a signature in the presence of a witness /attestor. The attesting of the signature does not require a notary, but the signature of a person present at the time the document is signed. KEYCORP CONFIDENTIAL - This is counterpart # of _ manSair executed countemarts. Only counterpart # 1 constitutes chattel paper Property Schedule No. 3 Master Tax - Exempt Lease /Purchase Agreement This Property Schedule No. 3 is entered into as of the Commencement Date set forth below, pursuant to that certain Master Tax - Exempt Lease /Purchase Agreement (the "Master Agreement "), dated as of 4/2/2009, between Key Government Finance, Inc., and City of Corpus Christi. 1. Interpretation. The terms and conditions of the Master Agreement are incorporated herein by reference as if fully set forth herein. Reference is made to the Master Agreement for all representations, covenants and warranties made by Lessee in the execution of this Property Schedule, unless specifically set forth herein. In the event of a conflict between the provisions of the Master Agreement and the provisions of this Property Schedule, the provisions of this Property Schedule shall control. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement. 2. Commencement Date. The Commencement Date for this Property Schedule is 6/23/2009. 3. Property Description and Payment Schedule. The Property subject to this Property Schedule is described in Exhibit A hereto. Lessee shall not remove such property from the locations set forth therein without giving prior written notice to Lessor. The Rental Payment Schedule for this Property Schedule is set forth in Exhibit 1. 4. Opinion. The Opinion of Lessee's Counsel is attached as Exhibit 2. 5. Lessee's Certificate. The Lessee's Certificate is attached as Exhibit 3. 6. Proceeds. Lessor shall disburse the proceeds of this Property Schedule in accordance with the instructions attached hereto as Exhibit 4. 7. Acceptance Certificate. The form of Acceptance Certificate is attached as Exhibit 5. 8. Additional Purchase Option Provisions. In addition to the Purchase Option provisions set forth in the Master Agreement, Rental Payments payable under this Property Schedule shall be subject to prepayment as follows: See termination amount in Exhibit 1 (Payment Schedule), subject to per diem adjustment. 9. Bank Qualification and Arbitrage Rebate. Attached as Exhibit 6. 10. Expiration. Lessor, at its sole determination, may choose not to accept this Property Schedule if the fully executed, original Agreement (including this Property Schedule and all ancillary documents) are not received by Lessor at its place of business by 6/24/2009. IN WITNESS WHEREOF, Lessor and Lessee have caused this Property Schedule to be executed in their names by their duly authorized representatives as of the Commencement Date above. Lessor: Key vemment Figan l , Inc. Name: Title: Name: CINQ SHER�4IOOO Title: Contracts Manager Lessee: City of Corpus Christi By: Name: Title: Attest By: Name: Title: —45- KEYCORP CONFIDENTIAL - This is countemart * of manually executed countemane nniv rnuntamad I I rnnetautae rhattai nanar EXHIBIT 1 Property Description and Payment Schedule Re: Property Schedule No. 3 to Master Tax - Exempt Lease /Purchase Agreement between Key Government Finance, Inc. and City of Corpus Christi. The Property is as follows: The Property as more fully described in Exhibit A incorporated herein by reference and attached hereto. EQUIPMENT LOCATION: 1201 Leopard St., Corpus Christi, TX 78401 USE: Data Storage - This use is essential to the proper, efficient and economic functioning of Lessee or to the services that Lessee provides; and Lessee has immediate need for and expects to make immediate use of substantially all of the Property, which need is not temporary or expected to diminish in the foreseeable future. Rental Payment Schedule If the Due Dates are not defined in this Rental Payment Schedule, they shall be defined as the first day of each annually period of this Rental Payment Schedule commencing with the Acceptance Date. Total Principal Amount $508,129.45 Payment No. Due Date Rental Payment Principal Interest Termination 1 23- Jun -2009 111,534.58 111,534.58 0.00 408,492.72 2 23- Jun -2010 111,534.58 92,178.10 19,356.48 313,549.27 3 23- Jun -2011 111,534.58 96,677.01 14,857.57 213,971.95 4 23- Jun -2012 111,534.58 101,395.49 10,139.09 109,534.60 5 23- Jun -2013 111,534.58 106,344.27 5,190.31 0.00 Lessee: City of Corpus Christi By: Name: Title: -46- EXHIBIT A Property Description System NaKI %mprlsc i9MaCf t[anfwnxr Packa� lnehaivx twni =l nraci iiXWclrrrag fate Storage Nixie., and 1 IC 54S15 and 4 W.MP.I ICt]PI .Applfan a, 4 X1-Cllfl 1m3F1rte ChanS _picots s to 611,11 rer !iakCopzI micnleGtortALI :. saa -: ;cable • 3m Li_ EN:plotL.0 1710 x 1Tibe Qplit NeeSCad ;Cobh • tin I.C.n:splrvJLC Duplex rib er Optit pmtCgd LC Dap] o 'W L tiri •s PPner LC D+rp1cNl Av;>k t ' 19a1a:ucd filer Dalarac CiI' `1,41.- rndtyPalal:ar fur hnirLu T•and Iimprsta SLXI with 8. i:1affla€inrSTierk a nn fro(lavaee paakagc fortanp Tia^ -feint Suhwam Vac ks3 for with rupportfca lnlallid9[¢5h 'manage nusal'.ary so ,psAex ,'Qtk3inAttlee fapipriac7gp aufarm M nom- ;ge Donut mar+:ge aiminirtatIoa N}: ttn r,eCtvnecpaaage t:atu&a L1QN \tnnngu .TnneScala Cen2.VD for L ipriac 7O1t} I .2f h1&€ : ''TiniicakG , MMi?incls.±rtcrsritrnott * fag :sine Ontprioc 7CO3sptera. tt, tecvrnon rnmetrvet.ITIAI _ Thies i� nn...NnrnaN Y -47- of manuaik. ...rpm Atari nnuntamaNc link. rani ntnmart $ 1 nnnetih that nhattal nanar Servire • [mgvi.s 1 's lei -tA3_ ;_Empcise �GW..F.etsi Y:sar fta+il S,ares & t);ha E tat narc - Fawe. Distribution ibrc Cisc lit Cb ,rnaISW trVP6C Chrapel WSW t,C Cmd (.42 4 t22 CMd Niirels .ir.?c -its 110V. 12y 9]31, !%U4, 9Mih 922 .9222 2 3 71. 1G+17'O S 932424•P»r3%ditilavn F'akra Swad,,I< bptAci }SAM; (SFps pacbase j acpnasktIO ' JYe21i4,Xi 1te1nndaut Priem Stwn y M125912i -48- 4 a;nbYl"aTM'v'iw` MEE Gaeo 911141 ?4,. ?1'! raav be t mud at IttpJ .. 3:4:ti`.I an 4 t a #-9nRSaneni4,. 24 It la ofd Pueia. ante: Reporter far the Cnrpriac, ^!y38, mefu„vs Pruner Server, Slaintenavice, (trey Repar.r for trap dls per monthi 1 •aft Auw upturn-Opp Orrsile bX Channei Pa rrenONLY patmeraal; itcan.Bartshausing it*uaaa arc, 4i;ry JcSlaft A,1gn fixriite far Y.votoh to provide ackcar.lri fir, pxtnbi w,nxner. The Stall �Arig,nea,tatrtrn `.AiYa dor?ryi qf, NhFprwu.xsinlprt.?.m'a�3'?&FF.1 ,.. 1 ij c,s e Services - A- f l y ; Ynae[ai wrVrf1RD rh,.winc NTICI _ Thie ie rnuntamere -49- of manually &varutad rnuntarnarte flnlo nnnataened 8 f nnnefihJae rheHal none, EXHIBIT 2 Lessee's Counsel's Opinion [To be provided on letterhead of Lessee's counsel.] [Address to Lessor and Lessee] RE: Property Schedule No. 3 to Master Tax- Exempt Lease/Purchase Agreement between Key Government Finance, Inc. and City of Corpus Christi. Ladies and Gentlemen: We have acted as special counsel to City of Corpus Christi ( "Lessee "), in connection with the Master Tax - Exempt Lease /Purchase Agreement, dated as of 4/2/2009 (the "Master Agreement'), between City of Corpus Christi, as lessee, and Key Government Finance, Inc. as lessor ( "Lessor"), and the execution of Property Schedule No. 3 (the "Property Schedule ") pursuant to the Master Agreement. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement and Property Schedule. As to questions of fact material to our opinion, we have relied upon the representations of Lessee in the Master Agreement and the Property Schedule and in the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon the foregoing, we are of the opinion that, under existing law: 1. Lessee is a public body corporate and politic, duly organized and existing under the laws of the State, and has a substantial amount of one or more of the following sovereign powers: (a) the power to tax, (b) the power of eminent domain, and (c) the police power. 2. Lessee has all requisite power and authority to enter into the Master Agreement and the Property Schedule and to perform its obligations thereunder. 3. The execution, delivery and performance of the Master Agreement and the Property Schedule by Lessee has been duly authorized by all necessary action on the part of Lessee. 4. All proceedings of Lessee and its goveming body relating to the authorization and approval of the Master Agreement and the Property Schedule, the execution thereof and the transactions contemplated thereby have been conducted in accordance with all applicable open meeting laws and all other applicable state and federal laws. 5. Lessee has acquired or has arranged for the acquisition of the Property subject to the Property Schedule, and has entered into the Master Agreement and the Property Schedule, in compliance with all applicable public bidding laws. 6. Lessee has obtained all consents and approvals of other governmental authorities or agencies which may be required for the execution, delivery and performance by Lessee of the Master Agreement and the Property Schedule. 7. The Master Agreement and the Property Schedule have been duly executed and delivered by Lessee and constitute legal, valid and binding obligations of Lessee, enforceable against Lessee in accordance with the terms thereof, except insofar as the enforcement thereof may be limited by any applicable bankruptcy, insolvency, moratorium, reorganization or other laws of equitable principles of general application, or of application to municipalities or political subdivisions such as the Lessee, affecting remedies or creditors' rights generally, and to the exercise of judicial discretion in appropriate cases. 8. As of the date hereof, based on such inquiry and investigation as we have deemed sufficient, no litigation is pending, (or, to our knowledge, threatened) against Lessee in any court (a) seeking to restrain or enjoin the delivery of the -50- Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Lessee to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. 9. The Lessee is a political subdivision within the meaning of Section 103 of the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder, and the portion of payments identified as the interest component of the rents (as set forth in the payment schedule attached to the Property Schedule) will not be includable in Federal gross income of the recipient under the statutes, regulations, court decisions and rulings existing on the date hereof and consequently will be exempt from Federal income taxes. This opinion may be relied upon by Lessor, its successors and assigns, and any other legal counsel who provides an opinion with respect to the Property Schedule. Very truly yours, By: DO NOT SIGN THIS FORM - MUST BE ON LETTERHEAD OF LESSEE'S COUNSEL Dated: -51- EXHIBIT 3 Lessee's Certificate Re: Property Schedule No. 3 to Master Tax - Exempt Lease /Purchase Agreement between Key Government Finance, Inc. and City of Corpus Christi. The undersigned, being the duly elected, qualified and acting of the City of Corpus Christi ( "Lessee ") do hereby certify, as of 6/23/2009, as follows: 1. Lessee did, at a meeting of the governing body of the Lessee held on by resolution or ordinance duly enacted, in accordance with all requirements of law, approve and authorize the execution and delivery of the above - referenced Property Schedule (the "Property Schedule ") and the Master Tax - Exempt Lease /Purchase Agreement (the "Master Agreement') by the following named representative of Lessee, to wit: NAMEOF EXECUTING OFFICIAL (Official who signed the documents.) TITLE OF EXECUTING OFFICIAL SIGNATURE OF EXECUTING OFFICIAL Title: And/ Or y; 2. The above -named representative of the Lessee held at the time of such authorization and holds at the present time the office set forth above. 3. The meeting(s) of the governing body of the Lessee at which the Master Agreement and the Property Schedule were approved and authorized to be executed was duly called, regularly convened and attended throughout by the requisite quorum of the members thereof, and the enactment approving the Master Agreement and the Property Schedule and authorizing the execution thereof has not been altered or rescinded. All meetings of the governing body of Lessee relating to the authorization and delivery of Master Agreement and the Property Schedule have been: (a) held within the geographic boundaries of the Lessee; (b) open to the public, allowing all people to attend; (c) conducted in accordance with internal procedures of the governing body; and (d) conducted in accordance with the charter of the Lessee, if any, and the laws of the State. 4. No event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, an Event of Default or an Event of Nonappropriation (as such terms are defined in the Master Agreement) exists at the date hereof with respect to this Property Schedule or any other Property Schedules under the Master Agreement. 5. The acquisition of all of the Property under the Property Schedule has been duly authorized by the governing body of Lessee. 6. Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current budget year to make the Rental Payments scheduled to come due during the current budget year under the Property Schedule and to meet its other obligations for the current budget year and such funds have not been expended for other purposes. 7. As of the date hereof, no litigation is pending, (or, to my knowledge, threatened) against Lessee in any court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Lessee to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. City of Corpus Christi Attest By: Title: '.: ;SOMEONE OTHER TRAM THE EXECUTING,OFF1CIAL(S) SHOWN ABOVE MUSTSIGN'HERE. y; —52— EXHIBIT 4 Payment of Proceeds Instructions Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Re: Property Schedule No. 3 (the "Property Schedule ") to Master Tax - Exempt Lease /Purchase Agreement between Key Government Finance, Inc. ( "Lessor ") and City of Corpus Christi ( "Lessee "). Ladies and Gentlemen: The undersigned, an Authorized Representative of the Lessee hereby requests and authorizes Lessor to disburse the net proceeds of the Property Schedule as follows: Name of Payee: Key Bank NA By check By wire transfer X City of Corpus Christi By: Name: Title: —53— EXHIBIT 5 Acceptance Certificate Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Re: Property Schedule No. 3 to Master Tax - Exempt Lease /Purchase Agreement between Key Government Finance, Inc. and City of Corpus Christi Ladies and Gentlemen: In accordance with the above - referenced Master Tax - Exempt Lease /Purchase Agreement (the "Master Agreement "), the undersigned ( "Lessee ") hereby certifies and represents to, and agrees with, Key Government Finance, Inc. ( "Lessor"), as follows: (1) The Property, as such terms are defined in the above - referenced Property Schedule, has been acquired, made, delivered, installed and accepted on the date indicated below. (2) Lessee has conducted such inspection and /or testing of the Property as it deems necessary and appropriate and hereby acknowledges that it accepts the Property for all purposes. No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default or an Event of Nonappropriation (as such terms are defined in the Master Agreement) exists at the date hereof. (3) Date: City of Corpus Christi as Lessee By: Name: Title: -54- Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 EXHIBIT 6 Bank Qualification And Arbitrage Rebate Re: Property Schedule No. 3 to Master Tax - Exempt Lease /Purchase Agreement Key Government Finance, Inc. and City of Corpus Christi Qualified Tax - Exempt Obligation This section intentionally left blank Arbitrage Rebate. Pursuant to Treasury Regulations Section 1.148 -7(d), the gross proceeds of this Property Schedule will be expended for the governmental purposes for which this Property Schedule was entered into, as follows: at least 15% within six months after the Commencement Date, at least 60% within 12 months after the Commencement Date, and 100% within 18 months after the Commencement Date. If Lessee is unable to comply with Section 1.148 -7(d) of the Treasury Regulations, Lessee shall compute rebatable arbitrage on this Agreement and pay rebatable arbitrage to the United States at least once every five years, and within 60 days after payment of the final Rental Payment due under this Agreement. Lessee: City of Corpus Christi By: Name: Title: -55- * *Please fill out this form and fax it to your insurance company ** Request for Certificate of Insurance TO: Insurance Carrier: (Name) (Address) (Address) (Contact Name) (Contact Phone) (Contact Fax) FROM: Customer /Lessee: City of Corpus Christi 1201 Leopard St. Corpus Christi, TX 78401 Contact Name: MIS Director and CIO Michael Armstrong Contact Phone: 361 - 826 -3735 Contact Fax: 361 -880 -3741 City of Corpus Christi is in the process of financing Data Storage equipment with Key Government Finance, Inc.. City of Corpus Christi requests that Key Government Finance, Inc. be listed as "Key Government Finance, Inc., their successors and assigns" and that it be named ADDITIONAL INSURED as to liability coverage and LOSS PAYEE as to property coverage. A copy of said certificate should be forwarded to Key Government Finance, Inc. as described below. NOTE: Coverage is to include: (1) insurance against all risks of physical loss or damage to the Equipment; (2) commercial general liability insurance (including blanket contractual liability coverage and products liability coverage) for personal and bodily injury and property damage of not less than $1,000,000; and (3) if applicable, automobile liability coverage of not less than $3,000,000. Key Government Finance, Inc. is to receive 30 days prior written notice of cancellation or material change in coverage. Qualifying language such as "endeavor to provide "; "but failure to do so shall impose no obligation or liability of any kind upon the insurer, its agents or representative" or the like will NOT be accepted and will delay funding. ❑ 1. Please FAX this completed information to: Key Government Finance, Inc. Suzanne Wagner, Account Manager Phone Number: 720-304-1419 Fax Number: 866 -840 -3016 ❑ 2. Please MAIL a Certificate of Insurance to: Key Government Finance, Inc. Suzanne Wagner 1000 S. McCaslin Boulevard Superior, CO 80027 ❑ 3. Please CONTACT the Account Manager: ✓ When faxing this Certificate. if If this cannot be completed today. ✓ If you have any questions. -56- Notification of Tax Treatment Key Government Finance, Inc. is required to collect and remit sales /use tax in the taxing jurisdiction where your equipment will be located. In the event we do not receive a valid sales tax exemption certificate prior to the date your lease commences, you will be charged sales /use tax. Personal property tax returns will be filed as required by local law. In the event that any tax abatements or special exemptions are available on the equipment you will be leasing from us, please notify us as soon as possible and forward the related documentation to us. This will ensure that your leased equipment will be reported correctly. Please indicate below if you feel that your lease is subject to tax or whether a valid exemption exists. I agree that my lease is subject to sales /use tax. X I am exempt from sales /use tax. I have previously provided a completed exemption certificate to Key Government Finance, Inc. which is valid for this transaction. I am exempt from state tax but subject to local tax. I have attached a completed exemption certificate. I have a valid abatement or property tax exemption (documentation attached). If applicable to the tax rates in your state, are you outside the city limits or in an unincorporated area? Additional comments: Lessee: City of Corpus Christi By: Name: Title: -57- KEYCORP CONFtnFNnni _ INSTRUCTIONS FOR COMPLETING THE 8038 FORM Per the Internal Revenue Service, you are required to fill in the Report Number information for Line 4 (the form included In your package is an 8038 -G). * *We must have this information in order to complete your financing. ** 8038 -G Line 4. After the preprinted 3, enter two self- designated numbers. Number the reports consecutively during each calendar year. (If this is the first tax - exempt financing that you have entered into this year, you would use the number 01. If this is the eleventh tax - exempt financing that you have entered into this year, you would use the number 11.) Additionally, please sign at the bottom of the form and remember to print your name and title. Thank you. —58— Form 8038 -G (Rev. November 2000) Department of the Treasury Internal Revenue Service Information Return for Tax - Exempt Governmental Obligations (Under Internal Revenue Code section 149(e)) See separate instructions. (Caution: If the issue price is under $100,000, use Form 8038 -GC) OMB No. 1545 -0720 Part I Reporting Authority If Amended Return, check here O ❑ 1 Issuers name City of Corpus Christi - 2 Issuers employer Identification number 74- 6000574 3 Number and street (or P. 0. box if mail is not delivered to street address) 1201 Leopard St. Room /suite 4 Report number 3 5 City, town, or post office, state, and ZIP code Corpus Christi, TX 78401 6 Date of issue 7 Name of issue Property Schedule No. 3 to Master Tax - Exempt Lease /Purchase Agreement 8 CUSIP number 9 Name and title of officer or legal representative whom the IRS may call for more information MIS Director and CIo, Michael Armstrong 10 Telephone number of officer or legal representative 361-826-3735 Part II Type of Issue (check applicable boxes) and enter the issue price for each) See instructions and attach schedule 11 ❑ Education 12 ❑ Health and hospital 13 ❑ Transportation 14 ❑ Public Safety 15 ❑ Environmental (including sewage bonds) 16 ❑ Housing 17 ❑ Utilities 18 ID Other. Describe (see instructions) t Data storage devices 19 If obligations are TANs or RANs, check box o ❑ If obligations are BANs, check box f ❑ 20 If obligations are in the form of a lease or installment sale, check box o ❑ Part III Description of Obligations (Complete for the entire issue for which this form is being filed.) 21 (a) Final maturity date (b) Issue price (c) Stated redemption price at maturity (d) Weighted average maturity (e) Yield $396,595 $396,595 2.00 years 4.88 Part IV Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 23 Issue price of entire issue (enter amount line 21, column (b)) 24 Proceeds used for bond issuance costs (including underwriters' discount) 25 Proceeds used for credit enhancement 26 Proceeds allocated to reasonably required reserve or replacement fund 27 Proceeds used to currently refund prior issues 28 Proceeds used to advance refund prior issues 29 (Total add lines 24 through 28) 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) Description of Refunded Bonds (Complete this part only for refunding bonds) Part V 24 25 26 27 28 0.00 0.00 0.00 0.00 0.00 $396,595 30 Enter the remaining weighted average maturity of the bonds to be currently refunded 31. Enter the remaining weighted average maturity of the bonds to be advance refunded 32 Enter the last date on which the refunded bonds will be called 33 Enter the date(s) the refunded bonds were issued o Pal VI r N/A years N/A years N/A N/A Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) 35 0.00 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions) 36a 0.00 b Enter the final maturity date of the guaranteed investment contract r 37 Pooled financings: a Proceeds of this issue that are to be used to make loans to other govemmental units 37a 0.00 b If this issue is a loan made from the proceeds of another tax - exempt issue, check box f ❑ r and enter the name of the issuer r and the date of the issue 38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box o ❑ 39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box o ❑ 40 If the issuer has identified a hedge, check box o ❑ Please Sign Here Under penalties of perjury, I declare that I have examined this return, and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Signature of Issuer's authorized representative Date Type or print name and title For Paperwork Reduction Act Notice, see page 2 of the Instructions. 5r Cat. No. 63773S Form 8038 -G (Rev. 11 -2000) KEYCORP CONFIDENTIAL - This is counterpart # of _ manually executed counterparts. Only counterpart # 1 constitutes chattel paper LESSEE INVOICE INSTRUCTIONS (The information you provide enables us to invoice you correctly.) City of Corpus Christi BILL TO ADDRESS: BILLING CONTACT: First, M.I. and Last Name: Title: Phone Number: Fax Number: PURCHASE ORDER NUMBER: Invoices require purchase order numbers: YES Purchase Order Number NO FEDERAL TAX ID NUMBER: EQUIPMENT LOCATION Of different from Billing Address): ADDITIONAL INFORMATION NEEDED ON INVOICE: Ircvrnoo rnucnncurmr _ Thie in rm infernaA a of man §alto executed counteroafs. Only countemart # 1 constitutes chattel paper Escrow Disbursement Instructions for Tax - Exempt financing In reference to your equipment financing, we will be depositing the financing proceeds directly into an escrow account. This account will provide you with the ability to disburse funds incrementally (either directly to vendors or to reimburse yourself) based on equipment invoices (any $ size and frequency). You will control the disbursement of funds by completing the attached documents. Escrow Disbursements — The following are the steps that you will need to take when making disbursements of proceeds from your escrow account: 1. Complete and sign Exhibit A "FORM OF REQUISITION OF COSTS OF PROPERTY ". This needs to be on your letterhead. 2. Complete and sign — Schedule 1 "DISBURSEMENT SCHEDULE" complete with payment information. 3. Attach — Invoice(s) from the Vendor(s). 4. Mail a completed and signed copy of the Exhibit A, Schedule 1 and the Vendor invoices to my attention at the address listed below. • Note: If the disbursement from the escrow is for the reimbursement of funds already expended, you must attach proof of payment (front and back of cancelled checks). * *PLEASE NOTE THAT WE MUST RECEIVE THE ORIGINAL DOCUMENTS ** Once you are ready to do the final disbursement out of the Escrow account: • Final Disbursement — Include the signed and dated original of the Exhibit 5 "ACCEPTANCE CERTIFICATE" (this document was part of your original document package), along with the Exhibit A "FORM OF REQUISITION OF COSTS OF PROPERTY" and the rest of the attachments needed. Additionally, please include a letter stating that this is the final disbursement and that you wish to close the Escrow account. • If there is any money remaining in the Escrow account, after the final disbursement to the Vendor(s), the balance will be applied to your next payment. If you have any questions regarding this information, please give me a call. Thank you. Suzanne Wagner Key Government Finance 1000 S. McCaslin Blvd. Superior CO 80027 720 - 304 -1419 866 - 840 -3016 Fax KEYCORP CONFIDENTIAL - This is counterpart # _ of _ manual§ Axecuted counterparts. Only counterpart #1 constitutes chattel paper ESCROW AGREEMENT This Escrow Agreement (the "Escrow Agreement "), dated as of 6/23/2009 and entered into among Key Government Finance, Inc. ( "Lessor"), City of Corpus Christi ( "Lessee ") and KeyBank National Association (the "Escrow Agent "). RECITALS: A. Lessor and Lessee are parties to a Master Tax - Exempt Lease /Purchase Agreement, dated as of 4/2/2009 and Schedule No. 3 thereunder, dated as of 6/23/2009 (the "Lease ") whereunder Lessee is acquiring from Lessor certain personal property more particularly described therein (the "Property"). B. Lessor and Lessee intend to cause or have caused certain funds to be deposited with Escrow Agent to pay for costs of the Property, and Escrow Agent has agreed to disburse said funds in accordance with the terms and conditions of this Agreement. C. Each of the parties has authority to enter into this Agreement and has taken all actions necessary to authorize the execution of this Agreement by the officers whose signatures are affixed hereto. NOW, THEREFORE, the parties agree as follows: 1. Appointment of Escrow Agent. Lessor, Lessee and Escrow Agent agree that Escrow Agent shall act as sole Escrow Agent under the Lease and this Escrow Agreement, in accordance with the terms and conditions set forth in this Escrow Agreement. The Escrow Agent, in its capacity as escrow agent hereunder, shall not be deemed to be a party to the Lease, and this Escrow Agreement shall be deemed to constitute the entire agreement regarding the Acquisition Fund (as hereinafter defined) among Lessor, Lessee and Escrow Agent. 2. Acquisition Fund. There is hereby established in the custody of Escrow Agent a special trust fund designated as the "City of Corpus Christi Acquisition Fund" (the "Acquisition Fund ") to be held and administered by Escrow Agent in trust for Lessee in accordance with this Escrow Agreement, subject to Lessor's rights under Section 3 hereof. It is anticipated that the funds in the Acquisition Fund and earnings thereon shall be sufficient to pay the cost of acquisition of the Property. In the event such sums are insufficient, Lessee shall be responsible for the timely payment of any deficiency. The moneys and investments held by Escrow Agent under this Agreement are irrevocably held in trust for the benefit of Lessee and Lessor, and such moneys, together with any income or interest earned thereon, shall be expended only as provided in this Agreement, and shall not be subject to levy or attachment or lien by or for the benefit of any creditor of Lessee (other than Lessor) or Lessor. Lessor, Lessee and Escrow Agent intend that the Acquisition Fund constitute an escrow account in which Lessee has no legal or equitable right, title or interest until satisfaction in full of all conditions contained herein and in the Lease for the disbursement of funds by Escrow Agent therefrom. However, if the parties' intention that Lessee shall have no legal or equitable right, title or interest until all conditions for disbursement are satisfied in full is not respected in any legal proceeding, the parties hereto intend that Lessor have a security interest in such account, and such security interest is hereby granted to Lessor by Lessee, to secure payment of all sums due to Lessor under the Lease. For such purpose, Escrow Agent hereby agrees to act as agent for Lessor in connection with the perfection of such security interest and agrees to note, or cause to be noted, on all books and records relating to such accounts, Lessor's interest therein. 2.A. Deposit in Acquisition Fund. There shall be deposited in the Acquisition Fund the sum of $508,129.45. Escrow Agent shall maintain accounting records sufficient to permit calculation of the income on investments and interest earned on deposit of amounts held in the Acquisition Fund, and such income and interest shall become part of the Acquisition Fund and may be expended as provided herein. 2.B. Disbursements from Acquisition Fund. Escrow Agent shall make payments from the Acquisition Fund to pay costs of the Property upon receipt of requisitions from Lessee, signed by an authorized individual substantially in the form attached hereto as Exhibit A, which is incorporated by reference herein. In the event Escrow Agent is directed or requested by Lessee to hold or deposit any retained funds or to accept a retainage bond On lieu of funds) as may be required by law or the terms of the acquisition contract to which Lessee is a party, Escrow Agent shall act in accordance with Lessee's instructions, and such retained funds (or performance bond) and any interest thereon shall be paid as provided in instructions to Escrow Agent from Lessee. The final requisition shall include the final acceptance certificate required in the Lease, which shall be executed by the Lessee and delivered to the Escrow Agent. Where requisitions involve titled motor vehicles, the requisition shall also include: (i) Manufacturer's Certificate of Origin. (ii) Motor vehicle paperwork appropriate to state of registration, noting Key Government Finance, Inc. as lien holder. (iii) Insurance certificate naming Key Government Finance, Inc., its successors and assigns as sole loss payee and additional insured for the specified equipment. 3. Termination of Escrow. q IC CnNFInFNTIAI - Thie in cnunfamart $ of man§dtry executed counterparts. Only counterpart # 1 constitutes chattel paper (a) Acquisition of Property. Upon the final acceptance of the Property by Lessee, as evidenced by execution by Lessee of a final acceptance certification pursuant to the Lease and delivered to Escrow Agent, and the payment of all costs related thereto (i) any retainage shall be disbursed as directed by Lessee, and (H) any amounts remaining in the Acquisition Fund (including the earnings from investments thereof) shall be transferred to Lessee and be applied toward reimbursement of Lessee for funds advanced for the Property. To the extent that additional moneys in excess of those needed to reimburse Lessee for the acquisition of the Property exist in the Acquisition Fund, such amounts shall be paid to Lessor and applied first to the next payment due on the Lease and then applied to prepayment of the principal component of installment payments and Lessor shall recalculate the lease payment schedule for the remaining term such that the remaining lease payments shall be level. Upon disbursement of all sums in the Acquisition Fund, this Escrow Agreement shall terminate, provided that the indemnifications by Lessee shall survive the termination of this Escrow Agreement. (b) Eighteen Months. This Escrow Agreement shall terminate eighteen (18) months from the date of this Escrow Agreement. It may, however, be extended by mutual consent of the Lessee and Lessor in writing to the Escrow Agent either in advance of the termination or retroactively. Any money remaining in the Acquisition Fund at the time of termination under this subsection (b) shall be transferred to Lessor and shall be applied first to the next payment due under the Lease, and then, if there are amounts remaining, applied to the prepayment of the Lease being applied to principal and Lessor shall recalculate the lease payment schedule for the remaining term such that the remaining lease payments shall be level. Lessee shall be deemed to have accepted all Property paid for from the Acquisition Fund at the time of termination under this subsection (b). Upon disbursement of all sums in the Acquisition Fund, this Escrow Agreement shall terminate, provided that the indemnifications by Lessee shall survive the termination of this Escrow Agreement. (c) Event of Default; Nonappropriation. Upon receipt of written notice from Lessor of an event of default by Lessee under the Lease or an event of nonappropriation, if provided for under the Lease, Escrow Agent shall disburse the funds in the Acquisition Fund to Lessor for application in accordance with the Lease. Upon such payments from the Acquisition Fund, this Escrow Agreement shall terminate, provided that the indemnifications by Lessee shall survive the termination of this Escrow Agreement. 4. Investment of Acquisition Fund; Arbitrage Rebate. (a) Investment of Acquisition Fund. Monies held by Escrow Agent hereunder shall be invested and reinvested by Escrow Agent upon written instructions from Lessee in an investment which is a permitted investment for Lessee under the laws of the state in which Lessee is organized. Escrow Agent shall have no responsibility for advising Lessee or Lessor as to the permissibility of any investment of monies in the Acquisition Fund. If Escrow Agent does not receive a written direction from Lessee as to the investment or reinvestment of monies in the Acquisition Fund, Escrow Agent may hold such monies uninvested until such direction is received. Escrow Agent shall have no responsibility for any losses suffered from any investment of monies on deposit in the Acquisition Fund authorized by Lessee. (b) Arbitrage Rebate. Lessee hereby represents, covenants and warrants that pursuant to Treasury Regulations Section 1.146 -7(d), the gross proceeds of the Lease will be expended for the governmental purposes for which the Lease was entered into, as follows: at least 15% within six months after the Commencement Date, such date being the date of deposit of funds into the Acquisition Account under Section 2.A., hereof, at least 60% within 12 months after the Commencement Date, and 100% within 18 months after the Commencement Date. If Lessee is unable to comply with Section 1.148 -7(d) of the Treasury Regulations, Lessee shall, at its sole expense and cost, compute rebatable arbitrage on the Lease and pay rebatable arbitrage to the United States at least once every five years, and within 60 days after payment of the final rental or installment payment due under the Lease. 5. Amendment and Modification. This Escrow Agreement may not be amended, modified, altered, supplemented or waived except by a written instrument executed by Lessor, Lessee and Escrow Agent. 6. Regarding the Escrow Agent. (a) Duties of Escrow Agent. Escrow Agent undertakes to perform only such duties as are specifically set forth in this Escrow Agreement. Escrow Agent shall be under no implied obligation or subject to any implied liability hereunder. Escrow Agent shall incur no liability whatsoever except for its gross negligence or willful misconduct so long as it is acting in good faith. Escrow Agent shall not be required to take notice of any of the provisions of the Lease or any document or instrument executed in connection therewith, except as expressly set forth in this Escrow Agreement. The permissive right of the Escrow Agent to do things enumerated in this Escrow Agreement shall not be construed as a duty. (b) Escrow Agent Reliance. Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, and may assume that any person purporting to give any writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to do so. Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner and execution, or validity of any instrument deposited with it, nor as to the identity, authority or right of any person executing the same; and its duties hereunder shall be limited to those specifically provided herein. KEYCORP CONFIDENTIAL - This is counterpart # _ of manee&3xecuted counterparts. Only counterpart # 1 constitutes chattel paper (c) Counsel and Fees; Reliance upon Counsel. If Escrow Agent believes it to be reasonably necessary to consult with counsel concerning any of its duties in connection herewith, or in case the Escrow Agent becomes involved in litigation on account of acting hereunder, then, in either case, its cost, expenses and reasonable attorneys fees shall be paid by Lessee. Escrow Agent's right to receive its attorneys' fees and expenses shall survive the termination of this Escrow Agreement. If Escrow Agent consults with counsel, Escrow Agent may act, in good faith, in reliance upon the advice of counsel concerning its duties in connection herewith or in acting hereunder. (d) No Obligation to Take Legal Action. Escrow Agent shall not be under any obligation to take any legal action in connection with this Escrow Agreement or for its enforcement, or to appear, prosecute or defend any action or legal proceeding which, in its opinion, would or might involve it in any costs, expense, loss or liability, or to otherwise expend or risk its own funds or incur any financial liability in the performance of this Escrow Agreement, unless and as often required by it, it shall be furnished with security and indemnity satisfactory against all such costs, expenses, losses or liabilities. If any controversy arises between the parties hereto or with any third person, the Escrow Agent shall not be required to resolve the same or to take any action to do so (other than to use its best efforts to give notice of such controversy to Lessor and Lessee) but may, at its discretion, institute such interpleader or other proceedings as it deems proper. (e) Quarterly Statement. Escrow Agent shall issue a quarterly accounting statement showing receipts to and disbursements from the Acquisition Fund. Such statement shall be mailed to Lessor and Lessee. (f) Resignation and Termination. Escrow Agent may, upon providing thirty days written notice, resign its position as Escrow Agent and terminate its liabilities and obligations hereunder. In the event Escrow Agent is not notified within thirty days of a successor Escrow Agent, Escrow Agent shall be entitled to transfer all funds to a court of competent jurisdiction with a request to have a successor appointed, at the expense of Lessee. Upon filing such action and delivering such assets, Escrow Agent's obligations and responsibilities shall cease. Lessor and Lessee may jointly terminate Escrow Agent and appoint a successor Escrow Agent by providing 15 days written notice to Escrow Agent. 7. Indemnification. To the extent permitted by law, Lessee hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated) to indemnify, protect, save and keep harmless the Escrow Agent and its respective successors, assigns, agents, employees and servants, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including reasonable legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by or asserted against, Escrow Agent at any time (whether or not also indemnified against the same by Lessee or any other person under any other agreement or instrument, but without double indemnity) in any way relating to or arising out of the execution, delivery and performance of this Escrow Agreement, the establishment hereunder of the Acquisition Fund, the acceptance of the funds and securities deposited therein, the purchase of any securities to be purchased pursuant thereto, the retention of such securities or the proceeds thereof, and any payment, transfer or other application of moneys or securities by Escrow Agent in accordance with the provisions of this Escrow Agreement; provided, however, that Lessee shall not be required to indemnify, protect, save or keep harmless Escrow Agent against Escrow Agent's own gross negligence or willful misconduct or gross negligence or willful misconduct of Escrow Agent's respective successors, assigns, agents and employees or the material breach by Escrow Agent of the terms of this Escrow Agreement. The indemnities contained in this Section shall survive the termination of this Agreement. 8. Notices. Any notices permitted or required under this Escrow Agreement shall be made in writing and shall be deemed given upon the date of personal delivery or 48 hours after deposit in the United States mail, certified or registered, postage fully prepaid, return receipt requested, addressed to the addresses set forth on the signature page of this Escrow Agreement. The party to whom notices or copies of notices are to be sent shall have the right at any time and from time to time to change its address for notice or person to receive notice by giving notice in the manner specified in this paragraph. 9. Escrow Agent's Fee. Escrow Agent shall be paid no fee for setting up the escrow. In the event that Escrow Agent is made a party to litigation with respect to the Acquisition Fund, or brings an action in interpleader, or Escrow Agent is required to render any service not provided for in this Escrow Agreement, or there is any assignment of interests in this escrow or any modification hereof, Escrow Agent shall be entitled to reasonable compensation for such extraordinary services and reimbursement by Lessee for all fees, costs, liability and expenses, including attorney fees. Lessee also agrees to pay any investment fees or other charges of Escrow Agent, such as wire transfer charges and disbursement charges and agrees such fees and charges may be deducted by and paid to the Escrow Agent from funds in or to be deposited in the Acquisition investment earnings to be deposited in the Acquisition Fund. 10. Counterparts. This Escrow Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. This Escrow Agreement is to be executed by the parties hereto in sufficient numbers so that an Escrow Agreement bearing each party's original signature can be held by the Escrow Agent. 11. Waiver. Any waiver by any party of any breach of any term or condition of this Escrow Agreement shall not operate as a waiver of any other breach of such term or condition or any other term or condition, nor shall any failure to enforce such provision hereof operate as a waiver of such provision or of any other provision hereof, nor constitute nor be deemed a waiver or release of any other party for anything arising out of, connected with, or based on this Escrow Agreement. KEYCORP CONFIDENTIAL - This is counterpart # of ma—nu§liixecuted counterparts. Only counterpart # 1 constitutes chattel paper 12. Exhibits. All exhibits, schedules and lists attached to this Escrow Agreement or delivered pursuant to this Escrow Agreement shall be deemed a part of this Escrow Agreement and incorporated herein, where applicable, as if fully set forth herein. 13. Applicable Law. This Escrow Agreement shall be governed by the laws of the state in which Lessee is located. 14. Successors and Assigns. This Escrow Agreement shall be binding on and shall inure to the benefit of the parties and their respective successors and assigns. Any corporation or association into which the Escrow Agent may merge, or to which Escrow Agent may sell or transfer its banking business, shall automatically be and become successor Escrow Agent hereunder and vested with all powers as was its predecessor without the execution or filing of any instruments or further act, deed or conveyance on the part of the parties hereto. 15. Severability. In the event any provision of this Escrow Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. IN WITNESS WHEREOF, Lessor, Lessee and Escrow Agent have caused this Escrow Agreement to be executed by their duly authorized representatives, all as of the date first above written. Address: 1000 S. McCaslin Blvd. City of Corpus Christi By Authorized Officer Title Address: 1201 Leopard St. Superior, CO 80027 Corpus Christi, TX 78401 KEYBANK NATIONAL ASSOCIATION By Authorized Officer Address: 127 Public Square Cleveland OH 44114 KEYCORP CONFIDENTIAL - This is counterpart # _ of _ manuals executed counterparts. Only counterpart #1 constitutes chattel paper JPlease type on your letterhead) EXHIBIT A FORM OF REQUISITION COSTS OF PROPERTY C/O Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Attn: Suzanne Wagner 720-304-1419 On Behalf of: KeyBank National Association 127 Public Square Cleveland OH 44114 Amount Requested: $ Total Disbursements to Date: $ Requisition No.: 1. The undersigned, an officer or official of Lessee, hereby requests and authorizes KeyBank National Association, as Escrow Agent under the Escrow Agreement dated as of 6/23/2009, among City of Corpus Christi (the "Lessee "), Key Government Finance, Inc. (the "Lessor") and Escrow Agent, to pay to or upon the order of the Lessee the amount specified above for the payment or reimbursement of costs of Property described in Schedule 1 attached. 2. The Lessee hereby certifies that: (a) each obligation mentioned in Schedule 1 has been properly incurred, is a proper charge against the Acquisition Fund and has not been the basis of any previous disbursement; (b) no part of the disbursement requested hereby will be used to pay for materials not yet incorporated into the Property or for services not yet performed in connection therewith; (c) insurance requirements of the Lease have been complied with and such coverage is in force; (d) as of the date of this Requisition no event of default or event of nonappropriation, if any, as such terms are defined in the Lease between Lessor and Lessee has occurred and is continuing and no event which with notice or lapse of time, or both, has,occurred and is continuing which would constitute such event of default or event of nonappropriation; and (e) the Property acquired with this disbursement is functionally complete and operationally independent and is hereby accepted. If this is the final requisition, the final acceptance certification required in the Lease is attached hereto. 3. All capitalized terms herein shall have the meanings assigned to them in the Escrow Agreement 4. The list of equipment, set forth in the equipment/property description to the Lease, shall be deemed amended upon payment of this requisition to include the property set forth in Schedule 1 hereto and any property paid with funds of this requisition. City of Corpus Christi By: Name: Title: Date: Approved by Lessor, or in the event Lessor's right, title and interest in the Lease has been assigned, by the current assignee of Lessor's right, title and interest in the Lease Agreement: Key Government Finance, Inc. By: Name: Title: Date: [Lessee to attach final acceptance certification if final disbursement request.] KFVCf11:10o Cr)NFInFNTIAI - Thic it rnunfamnd $ of maxi iIv executed counterparts. Only counterpart # 1 constitutes chattel paper SCHEDULE 1 DISBURSEMENT SCHEDULE To Requisition No. for the Acquisition Fund: 1. Amount: $ Payee: By check _ By wire transfer_ If by check, Payee's address: If by wire transfer, instructions as follows: Pay to: Bank Name: Bank Address: Bank City, State, Zip: Bank Phone: For Account of: Account No.: ABA No.: 2. Amount: $ Payee: By check _ By wire transfer_ If by check, Payee's address: If by wire transfer, instructions as follows: Pay to: Bank Name: Bank Address: Bank City, State, Zip: Bank Phone: For Account of: Account No.: ABA No.: City of Corpus Christi By: Name: Title: Date: -67- KEYCORP CONFIDENTIAL - This is counterpart # _ of manually executed counterparts. Only counterpart # 1 constitutes chattel paps- INVOICE Ont Key Government Finance, Inc. 1000 S. McCaslin Blvd. Superior CO 80027 Bill to: City of Corpus Christi Rose Esquivel, MIS 1201 Leopard St. Corpus Christi, TX 78401 Invoice No. Corpus — 03 Invoice Date: 6/10/09 Lease No. TBS Purchase Order No. Contract No. CSA No. ACT No. Reference: Qty Item Description Total 1 Lease Payment Payment due upon return of documents $111,534.58 Tax Balance Due $111,534.58 Please remit funds to: Key Government Finance, Inc. Attn: Suzanne Wagner 1000 S. McCaslin Blvd. Superior, CO 80027 Contact Phone: 720 - 304 -1419 Inc. REMITTANCE INFORMATION Date: Amount Due: Amount Enclosed: Please remember to: 1) Make checks payable to Key Government Finance, 2) Return a copy of this invoice with your payment. 3) Keep a copy of this invoice for your records. 4) Direct all inquiries to the contact listed above. Comments: KEYCORP CONFIDENTIAL - This is counterpart # of maTh Ily executed counterparts. Only counterpart # 1 constitutes chattel paper 'CISCO SYSTEMS CAPITAL LEASING OPTION CISCO. Capital June 8, 2009 City of Corpus Christi EQUIPMENT LEASE OPTION: LESSOR: LESSEE: EQUIPMENT: "Quote Valid for 30 days The lease financing will be completed by Key Government Finance. Cisco Systems Capitals financing partner for government and education customers. Payments due under the Lease financing will be made directly to Key Government Finance, Sc. at P.O. Box 1187. Englewood. CO 80150-1187. Key Government Finance. Inc. City of Corpus Christi Cisco Systems Products Cisco HW/SW $483.129.45 Extended Maintenance Cast $0.00 installation and other services $25,000.00 Shipping $0.00 TOTAL AMOUNT TO BE LEASED $508 129.45 FINANCING STRUCTURE: This is a tax- exempt state and municipal government lease with the eta to the equipment passing to lessee. This is a net lease under which Lessee pays all costs, including Insurance, maintenance and taxes. for the tens of the lease. Al the end of the lease term the equipment can be purchased for $1 Amount to be Leased Interest Rae Payments Payment Factor(*) Pmts IYea Term Adv.I Arr. $508,129.45 4.30% $176858.52 0.347487601 1 3 Years Advance $508.129.45 4.88% $111,534.58 0.219500326 1 5Veas Advance ('.1 The payment factor expresses the payment as a percentage of the Equipment Cost. To calculate the periodic lease payment for any Equipment Cost, multiply the payment factor by the Equipment Cost. APPROVAL: CONTACT: NOTES: The financing contemplated by this proposal is subject to the execution and delivery of all appropriate documents (in form satisfactory to Lessor). including without limitation, to the extent applicable. the Master Lease Agreement, any Schedule, financing statements, legal opinion or other documents or agreements reasonably required by Lesser. This proposal. unlit credit approved. serves as a quotation. not a commitment by Key Government Finance to provide credit. Final acceptance of this proposal is subject to credit, collateral and essential use review and approval by Lessor. The interest rate quoted herein assumes that the interest component of the Payments is exempt ham federal Income tax. Lessor will provide a taxable financing proposal if it Is determined that the financing will not qualify for tax- exempt interest rates. Eric Scott- US Stale 8 Local Gwnnent Account Manger Cisco Systems Capita 281 - 543 -1689 erscollidsco.com Bette Beauchamp Key Goverment Finance 3843 Spyglass Cost Green Cow Springs. FL 32043 PH: 904 -264 -3520 FAX: 216-370-5121 CELL: 407-256-8039 Emit Deise_K_Bemdnanp®key.com Alternative financing options available on request -69- h Aasodatlon with Key Government Finance, Inc. 1 one Scul Yetaslln Blvd Jason Kennings - Inside Saes Representative Key Gavemnont Finance, a Cisco Systens Capital Partner 1000 Scull, McCain Blvd Superior Colorado 80027 720.304- 1442.216-370 -4109 (fax) jason.m.hennings TKev.com resonant technology partners MANAGED IT SOLUTIONS Master Services and Non - Disclosure Agreement Prepared for: City of Corpus Christi June 15, 2009 -70-- This Master Services and Non - Disclosure Agreement (this "Agreement"), dated June 15th, 2009 ("the Effective Date "), is between Resonant Technology Partners, LLC ( "RTP ") and City of Corpus Christi, ("Client ") and shall remain in effect until terminated in accordance with the terms hereof. 1. Services. RTP agrees to provide to Client certain computer consulting, programming, and system engineering services regarding the purchase of a Xiotech Corporation Storage Area Network (SAN) system under the terms and conditions of this Agreement Specific services shall be detailed in one or more written performance work statements (each, a Performance Work Statement "PWS "), which shall specify the scope of the work to be performed, deliverables, project schedule, and rates for such services. Services shall be performed on a time and materials basis, fixed fee basis or recurring basis, as described in the applicable PWS. Each PWS shall become subject to and part of this Agreement when signed and delivered by both parties. This Agreement shall not preclude RTP from providing services to others which may result in the provision, creation, development or improvement of computer programs, techniques, products, services and documentation which are competitive to those provided to or used by Client, whether or not such materials are similar to materials developed by RIP pursuant to this Agreement. Each reference herein to "this Agreement" or similar language to that effect shall mean a reference, collectively, to this Agreement and each PWS, as any of the same may be amended, supplemented or otherwise modified from time to time. 2. Time for Performance. Client understands that the nature of the services to be performed hereunder is such that the time required for performance cannot always be determined in advance, and that all milestones and timetables regarding performance of the services are therefore only estimates. In the event RTP anticipates at any time that it will not reach one or more milestones or complete one or more assignments within the timetable set forth on any PWS, RIP shall promptly so inform Client, submit proposed revisions to the timetable and milestones that reflect RTP's best estimate of what can realistically be achieved, and continue to work under the revised timetable and milestones until otherwise directed by Client pursuant to the terms of this Agreement 3. Payment Client shall pay fees for services performed by RIP in accordance with the listing of fees and payments included in the applicable PWS, or, if the applicable PWS dearly states that services are to be performed, then Client shall pay the charges set forth on the applicable PWS for such services under the terms and conditions of this Agreement RIP shall send monthly invoices to Client for services rendered, and Client shall pay RIP within thirty (30) days of receipt of such invoice. 4. Control and Supervision. With regard to tasks for which RIP assumes primary project responsibility, RIP shall be responsible for the control and supervision of its personnel 5. Proprietary Rights. RIP does not convey nor does Client obtain any right in the programs, systems, data or materials utilized or provided by RIP in the performance of this Agreement (together with, but not limited to, their source codes and related documentation and instructions); provided, however, that Client shall have a perpetual, royalty-free, non - exclusive license to use any and all programming deliverables described on the applicable PWS from and after full payment to RIP of all amounts due under such PWS with respect to such deliverables. RIP shall hold all right, title, and interest in and to all techniques, methods, systems, ideas, concepts, products and programs developed by it in connection with the performance of the Agreement (collectively, the "RTP Service'). 6. license Grant and Use Restrictions. Subject to the terns and conditions of this Agreement RIP grants Client a limited, non - exclusive, non - substitutable, non - transferable license to use and to electronically access RIP data, only in conjunction with the applicable PWS and in accordance with this Agreement and any specific additional agreement, which RIP may require Client and /or any such end user to accept prior to granting access to specific portions of the RIP data. Client is prohibited from and shall not condone or assist any person or entity in modifying, translating, decompiling, disassembling or reverse engineering or otherwise attempting to determine the source code for the operation of any RIP Service, or creating derivative works based on any RIP Service or any part of the RTP Service or RTP Information. For purposes of this Agreement, "reverse engineering" shall mean the examination or analysis of any RTP Service and/or RTP Information to determine its source code, sequence, structure, organization, internal design, algorithms, encryption devices or the like, and, "RTP Information" shall mean all data, material, text, photographs, music, video, software, sound, graphics, other information or materials or portions thereof created by RTP at any time and from time to time, including, without limitation, all Confidential Information 7. Right to Assign PersonneL Client hereby acknowledges that RTP personnel working on projects under this Agreement may perform similar services from time to time for others, and that this Agreement shall not prevent RTP from performing such similar services or restrict RTP from so assigning the personnel provided to Client under this Agreement. RTP will make every effort consistent with sound business practices to honor the specific requests of Client with regard to the assignment of its employees; however, RTP reserves the sole right to determine the assignment of its employees and personnel. RTP shall not assign or reassign personnel without fast consulting with Client and exploring, on a best effort basis, a way to meet Client's personnel criterion. 8. Tenn and Termination. Term; Voluntary Termination. Upon execution and delivery by both parties of this Agreement, this Agreement will become effective as of the Effective Date and shall have an initial term of one year from such date This Agreement may be extended for up to four (4) additional one (1) year terms by the Director of Municipal Information Systems, subject to appropriation of funds. Termination with Cause. Ether parry may terminate this Agreement for cause. For purposes of this Agreement, "for cause" shall mean (a) failure to cure any default of this Agreement after thirty (30) days written notice. Termination Upon Insolvency. Ether party may terminate this Agreement by written notice to the other, and regard the other party as in default of this Agreement, if the other party becomes insolvent, makes a general assignment for the benefit of creditors, files a voluntary petition of bankruptcy, suffers or permits the appointment of a receiver for its business or assets, or becomes subject to any proceeding under any bankruptcy or Solvency law, whether domestic or foreign, or has wound up or liquidated its business, voluntarily or otherwise Payment Due. Notwithstanding the reason for or manner of termination of the Agreement, Client shall pay for all services rendered by RTP up to the effective date of termination of the Agreement within thirty (30) days of such termination date Return of Materials. In the event that this Agreement is terminated as provided for herein, each parry shall forthwith return to the other, or certify to the other in writing as to the destruction of (if the other party in writing instructs that such be destroyed), all RTP Information or other property of the other party then in its possession Termination for Non - Appropriation of Funds. All parties recognize that the continuation of any contract after the dose of any fiscal year of Client (City), which fiscal year ends on July 31st of each year, shall be subject to appropriations and budget approval providing for covering such contract item as an expenditure in said budget. Client (City) does not represent that the budget item will be actually adopted, said determination being within the sole discretion of the City Council at the time of adoption of such budget. If sufficient funds are not appropriated for this Contract, then Client (City) may terminate this Agreement without cause, without penalty, and without further obligation for future payments, upon sixty days written notice to RTP. 9. Warranty and Disclaimers. RIP represents and warrants that n Services will be performed in a professional and workmanlike manner according to the description in the applicable PWS; and (n) that RTP petsonnd will use their best efforts; and (il) none of such Services or any part of this Agreement is or will be inconsistent with any obligation to others; and (rv) all work under this Agreement and none of the Services or any development, use, production, distribution or exploitation thereof will infringe, misappropriate or vio late any intellectual property or other right of any person or entity. 10. limitations of Liability. Limited Time for Action. No action, regardless of form, arising out of the services under or performance of this Agreement may be brought by either party more than four years after the cause of action has accrued, except that an action for nonpayment may be brought within one year of the date of last payment Force Majeure. RTP shall not be liable to Client (or to any of Client's dients) for any delay in performance or any failure in performance hereunder caused in whole or in part by reason of force majeure, Client's failure to furnish necessary information with respect to details of performance on the par of Client, war (whether an actual declaration thereof is made or not), sabotage, insurrection, riot, terrorism and other acts of civil disobedience, action of a public enemy, laws, regulations or acts of any national, state or local government (or any agency, subdivision or instrumentality thereof), judicial action, accident, fire, explosion, flood, storm or other act of God. 11. Indemnification The following indemnifications and releases of liability will apply to all work performed under this Agreement In the event one party must bring legal action in order to enforce an indemnification, all costs and expenses related to that legal action shall be induded as part of the indemnification. RTP's Indemnification of Client RTP shall release Client of any liability for, and shall protect, defend, indemnify, and save Client, its officers, directors, agents, attorneys, employees and joint owners harmless from and against all claims, demands, and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party or parties, arising in connection herewith in favor of RTP's employees (including leased employees) or RTP's contractors or their employees, or RTP's invitees, on account of breach of contract, bodily injury, death or damage to property. Notification: If a daim is asserted against one of the parties to this agreement which may give rise to a daim for indemnity against the other party hereto, the party against whom the claim is first asserted must notify the potential indemnitor in writing and give the potential indemnitor the right to defend or assist in the defense of the claim Indemnity Obligation. Except as otherwise expressly limited herein, it is the intent of parties hereto that all indemnity obligations and /or liabilities assumed by such parties under terms of this Agreement be without limit and without regard to the cause or causes thereof, including preexisting conditions, strict liability, or the negligence of any party or parties, whether such negligence be sole, joint, contributory, or concurrent, active or passive, ordinary or gross. The indemnities, and releases and assumptions of liability extended by the parties hereto shall extend to the parties, their parent, holding and affiliated companies. The terms and provisions hereunder shall have no applicability to claims or causes of action asserted against RTP or Client or by reason of any agreement of indemnity with a person or entity not a party hereto. 12. Non - Disclosure of Confidential Information. Non - Disclosure; Confidentiality. Each party acknowledges that in the course of discussing and negotiating the terms of this Agreement and the parties' business relationship, and in the performance of each party's obligations pursuant to this Agreement, each party may obtain Confidential Information, as defined in Section 12.3, of the other party, its affiliates or customers, which such Confidential Information both parties deem to be valuable and proprietary to the party who owns such information and makes such disclosure. Each party agrees that it shall use the same means it uses to protect its own confidential and proprietary information, but in any event not less than reasonable means to prevent the disdosure and to protect the confidentiality of the Confidential Information for a period of not less than two (2) years following (a) its receipt of Confidential Information or (b) the termination of this Agreement in accordance with its terms, whichever is later. Additional Covenants. Without limiting the generality of the foregoing, (a) neither party shall make public, or authorize any disclosure or publication of Confidential Information, except as expressly permitted in writing by the other party, (b) each party shall take all reasonable and necessary steps to assure that all principals, officers, agents, employees, representatives, consults, or any other persons affiliated in any manner with such party do not disclose, or make public, or authorize any disdosure or publication of any Confidential Information, and to enforce this Agreement (c) neither party shall use the Confidential Information for any purpose other than the purpose for which it is disclosed, (d) neither party shall utilize the Confidential Information in the development or operation of any business, and (e) each party shall advise the other party in writing of any misappropriation or misuse by any person of Confidential Information as soon as such party becomes aware of such misappropriation or misuse. Confidential Information. The term "Confidential Information" means and includes information, materials or data derived from or relating to all business transactions (including megets & acquisitions), designs, products, parts, descriptions, development plans, products, costs, finances, marketing plans, equipment configurations, data (including testing and technical data), access or security codes or procedures utilized or acquired, business opportunities, financial information, reports, plans, proposals, pricing and sales information, vendor lists, personnel information, names of customers, research, and development, proprietary software, source codes, the terms, conditions and existence of this Agreement, any information designated as confidential in writing or identified as confidential at the time of disclosure if such disclosure is verbal or visual, and any copies of the prior categories or excerpts included in other materials created by the recipient party. Without limiting the generality of the foregoing, Confidential Information includes information in both oral and written form, or contained in any other type of storage medium, information relating to the both parties' employees, consulting, development, software services or marketingplans. Confidential Information shall also include information which, though not specifically disclosed by one party to the receiving party, is made available to the recipient through the recipient's inspection or review of the other party's facilities, services or products. Non - Applicability. Sections 12.1 and 12.2 shall not apply to Confidential Information which is (a) generally available to the public or becomes generally available to the public through no unauthorized act of the recipient party (b) rightfully received from a third party (other than an affiliate or customer of the party owning the Confidential Information) without an obligation of confidentiality, (c) disdosed without similar restrictions by the owner of the Confidential Information to a third party (other than an affiliate or customer of the party owning the Confidential Information), (d) approved by the party owning the Confidential Information, in writing, for disdosure, or (e) required to be disclosed pursuant to a requirement of a governmental agency or law, including but not limited to all Public Meetings and Public Information Laws of the State of Texas, and so long as the recipient party provides the other party with timely prior written notice of such requirement 13. Miscellaneous. Notices. All notices, requests, demands, and other communications hereunder shall be in writing and, unless otherwise provided herein, shall be deemed to have been duly given upon hand delivery or upon deposit in the United States Mad, postage prepaid, certified or registered mall, return receipt requested, at the addresses set forth above, or at such other address as shall have been furnished to the other in writing in accordance herewith, except that such notice of such change shall be effective only upon receipt Independent Contractor. Under this Agreement, RTP shall be an independent contractor. This Agreement shall not be construed as creating a partnership, joint venture, agency or employment relationship, or as granting a franchise under federal or state law. In the event that the Internal Revenue Service asserts that this Agreement creates a partnership for federal income tax purposes, RTP and Client agree to elect out of subchapter K and treat all income and expenses incurred by each party as such party's income and expenses. Amendments and Waiver. This Agreement may be amended or modified by, and only by, a written instrument executed by all the parties hereto. The terms of this Agreement may be waived by, and only by, a written instrument executed by the party against whom such waiver is sought to be enforced. Section and Other Headings. The section and other headings contained in this Agrtnuent are for convenience of reference only and shall not in anyway affect the meaning or interpretation of this Agreement Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. Assignments and Parties in Interest This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. Neither party may assign this agreement without prior written consent of the other party, which shall not be unreasonably withheld. No Implied Rights or Remedies. Except as otherwise expressly provided herein, nothing herein expressed or implied is intended or shall be construed to confer upon or to give any person, firm, or corporation, other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Agreement Entire Agreement This Agreement, and Texas Department of Information Resources Contract #DIRSDD -252, embodies the entire agreement and understanding between the parties hereto relating to the subject matter hereof and supersedes any prior agreements and understandings relating to the subject matter hereof. Applicable Law. This Agreement has been accepted and made performable in Nueces County, Texas. This Agreement and the rights and obligations of the parties hereto shall be construed under and governed by the laws of the State of Texas, without giving effect to principles of conflict of laws. Exdusive venue for resolution of any dispute between the parties related to the subject matter hereof shall be in Nueces County, Texas. IN WITNESS WHEREOF, the parties hereto hereby wanant that they have the requisite authority to execute this Agreement, and have executed this Agreement, as of the Effective Date of June 15th, 2009. Resonant Technology Partners, LLC (Signature) Stephen M. Mark Chief Executive Officer City of Corpus Christi (Signature) Angel R. Escobar P.E., City Manger CERTIFICATE OF LIABILITY INSURANCE OP ID EB RESON -1 DATE (MINDDAlY ) 06/17/09 PRODUCER Integrity Insurance Agency 2634 Kerrybrook Ct. San Antonio TX 78230 Phone:210- 593 -0820 Fax:210- 593 -0826 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED Resonant Technology Partners, Stephen Mark 23705 IH 10 West #301 San Antonio TX 78257 INSURER A Hartford Lloyds 38253 INSURER B'. TmitM States i.iaillty >m co INSURERC. Hartford Ins Co of Midwest 37478 INSURER D: INSURER E. COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. WE INSLRANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS NC CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TNan NASL LTR INSRD TYPE OF INSURANCE POLICY NUMBER POUCYEFFECTIVE DATE (MMDDNYW) POLICY EXPIRATION DATE (ME DOM'YY) LIMITS A GENERAL LLABILRY COMMERCIAL GENERAL LIABILITY 65SBATZ7748 08/21/08 08/21/09 EACH OCCURRENCE $1,000,000 X PR Mi ES(E occurencel $ 300,000 CLAIMS MADE X OCCUR MED EXP (Any one person) $ 10 , 000 PERSONAL 8 ADV INJURY $ 1,000 , 000 GENERAL AGGREGATE $2,000,000 GENL AGGREGATE LIMIT APPLIES PER PRODUCTS- COMP/OP AGG $ 2, 000 , 000 —I POLICY F jEo- n LOC A A AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS 65SBATZ7748 08/21/08 08/21/09 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) X BODILY INJURY (Per accident) $ X PROPERTY DAMAGE (Per accident) $ GARAGE LIABILFIY AUTO AUTO ONLY EA ACCIDENT $ IPNY OTHER THAN EA ACC $ -. —Il AUTO ONLY. AGG $ A EXCESS / UMBRELLA LIABILITY 65SBATZ7748 08/21/08 08/21/09 EACH OCCURRENCE $3,000,000 X noccU CLAMSMADE AGGREGATE $3,000,000 DEDUCTIBLE RETENTION $10,000 $ X C WORKER% COMPENSATION AND EMPLOYERS' LIABLITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y/N OFFICER/MEMBER EXCLUDED? (MSMMOry In NH) If yes. dascnbe under SPECIAL PROVISIONS below 65W8CRW1675 08/21/08 09/21/09 WLSIAIU- UNH- X I TORY LIMITS I ER EL EACH ACCIDENT $ 1,000,000 EL DISEASE - EA EMPLOYEE $ 1,000,000 EL DISEASE - POLICY LIMIT $ 1,000,000 A B OTHER Business Owners Po Professional Liabi 65SBATZ7748 TF.1004159 08/21/08 08/21/08 08/21/09 08/21/09 BPP 105,500 Tech E &O 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Certificate holder is named as additional insured with waiver of subrogation per written contract. CERTIFICATE HOLDER CANCELLATION CORFU -1 City of Corpus Christi 1201 E. Leopard St, 4th Floor (Corpus Christi TX 78401 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES SE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FALURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Debbie Kotara, CISR ACORD 25 (2009/01) © 1988 -2009 ACORD CORPORATION. All dgMs reserved. The ACOROname and logo are registered marks of ACORD -77- �� CERTIFICATE OF LIABILITY INSURANCE PRODUCER Integrity Insurance Agency 2634 Kerrybrook Ct. San Antonio TX 78230 Phone:210- 593 -0820 Pax:210- 593 -0826 OP ID EH RESON -1 DATE (MMNDIYYYY) 06/17/09 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC • INSURED Resonant Technology Partners, Stephen Mark 237D5 IH 10 West #301 San Antonio TX 78257 INSURER A- Hartford Lloyds 38253 INSURER B muted States Liability Me CO INSURER C. Hartford Ins Co of Midwest 37978 INSURER D: INSURER E THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD ItCICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTTER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TNeN LTR OYU L NSRO TYPE OF INSURANCE POLICY NUMBER POLICY POLICY EFFECTIVE DDYY) (MM /W POLICY-EXPIRATION LIMITS DATE (MMDDN YY) A GENERAL LIABILITY COWr1ERCIALGENERALLIABILITY 65SBATZ7748 08/21/09 08/21/10 EACH OCCURRENCE $1,000,000 X PREMSES(Esocaaence) $300,000 CLAIMS MADE X OCCUR I.EDEXP(Any one Person) $ 10,000 PERSONAL 8 ADV INJURY $ 1,000,000 GENERAL AGGREGATE $2,000,000 GENL AGGREGATE LIMIT APPLIES PER POLICY n IRC n LOC PRODUCTS - COMP /OPAGG $2,000,000 7 A A AUTOMOBILE LIABILITY ANY ALno ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS 65SBATZ7748 08/21/09 08/21/10 - COMBINED SINGLE LIMIT !Ea accident) $1,000,000 BODILY INJURY (Per Person) —' X BODILY INJURY (Per accident) $ X PROPERTY DAMAGE (Per awldenl) $ GARAGE LIABILTPY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY AGG $ A EXCESS I UMBRELLA LIABILITY OCCUR CLAIMSMADE DEDUCTIBLE RETENTION $10 , 000 65SBATZ7748 08/21/09 08/21/10 EACH OCCURRENCE $ 3.000.000 AGGREGATE $ 3.000.000 $ $ K R $ C AND AND ANY (Mandatory It yyeas, SPECIPLPROVISIONSDeIOW EMPLOYERS' COMPENSATION EMPLOYERS' LIANLIIY PROOPRIE RIXARTNER/EXECUTIVE h NH) describe uNer 65WBCBW1675 08/21/09 08/21/10 X I TORY LIMITS IDER EL EACH ACCIDENT $ 1,000,000 E . DISEASE - EA EMPLOYEE $1,000,000 EL DISEASE - POLICYLIMIT $ 1,000,0 00 A B OTHER Business Owners Po Professional Liabi 65SBATZ7748 TK1004159 08/21/09 08/21/08 08/21/10 08/21/09 BPP 105,500 Tech E &O 1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS 1 VEHICLES / EXCLUSIONS ADDEO BY ENDORSEMENT I SPECIAL PROVISIONS Certificate holder is named as additional insured with waiver of subrogation by written contract. CERTIFICATE HOLDER CANCELLATION CORPU -1 City of Corpus Christi 1201 E. Leopard St, 4th Floor !Corpus Christi TX 78401 SHOULD AM' OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPRATION DATE THEREOF, TIE ISSUING INSURER WILL ENDEAVOR TO MAL 30 DAYS WRITTEN NOTICE TO TIE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Debbie Kotara, Olga ACORD 25(2009101( © 1988 -2009 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks oT ACORD -78- 8 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: June 30, 2009 AGENDA ITEM: Ordinance authorizing the resale of thirty (30) properties for $102,726.00 which were foreclosed upon for failure to pay ad valorem taxes, of which the City shall receive $9,166.02 plus $40,534.64 for partial payment of City paving and demolition liens; and declaring an emergency. ISSUE: Properties located in the City of Corpus Christi are periodically foreclosed by Nueces County to collect delinquent taxes. Section 34.05 of the Property Tax Code requires that the governing body of the respective taxing entities approve the resale of these properties. Approval of this Ordinance will authorize the Nueces County Judge to execute a resale deed for the properties. REQUIRED COUNCIL ACTION: Approval of the proposed Ordinance authorizing the resale of the listed properties. PREVIOUS COUNCIL ACTION: None CONCLUSION AND RECOMMENDATION: Staff recommends that City Council approve the proposed Ordinance in order to place the properties back on the tax roll. Attachments Background Information Exhibit A 0 «. 41. t Jti 3 Constance P. Sanchez Interim Director of Financial Services constancep @cctexas.com (361) 826 -3227 — 8 1 — BACKGROUND INFORMATION Properties within the City of Corpus Christi are periodically foreclosed due to nonpayment of ad valorem taxes. The law firm of Linebarger, Goggan, Blair, & Sampson, L.L.P. is proposing the resale of the thirty (30) properties at the bid prices listed in Exhibit A. The monies received from this sale will be distributed pursuant to the property tax code. The net proceeds from the sale are first applied to pay off the outstanding court costs and the remaining funds are applied on a pro rata basis to each taxing jurisdiction. The total sale price for these properties is $102,726.00. Of this amount, the City of Corpus Christi is expected to receive $9,166.02 from the sale, plus $40,534.64 for partial payment of City paving and demolition liens. Each of these thirty properties has been reviewed by Neighborhood Services, Engineering Services, and Parks and Recreation for potential City use, such as for the City's In -Fill neighborhood revitalization program, but none were selected. Therefore, all thirty properties will remain on the list for resale. Approval of the resolution will authorize the Nueces County Judge to execute a Resale Deed for the properties listed and the properties, if sold, will be returned to the property tax roll for the upcoming year. —82— CO CO EXHI$IT A FORECLOSED PROPERTY LIST 1 605 95- 3911 -H ros�ge {z ✓ . t rb 9� " 9 ` -s'n �r�' �r` 3"r� t�..i.¢+dmucr�'- `� " $16,000.00 r�, ^�`�'x 10238 N. Hanin_ on 3415-0001-0010; Lot 1, Block 1, Hi: wa Villa_e Section I $3,302.97 $0.00 2 641 92- 8253 -0 5849 Hall Avenue 2230 -0000 -1140; Lot 114, Ebon Acres 2,000.00 0.00 1,977.00 3 648 97- 1188 -H 2406 Summers 8013 -0003 -0070; the south 100 feet of Lot 7 & the west 3 feet of the south 100 feet of Lot 6, Block 3 1,600.00 0.00 1,577.00 4 657 97- 2156 -13 1634 Main Drive 3593- 0004 -0110; Lot 11, Block 4, Hudson Acres 1,000.00 121.67 0.00 5 984 00- 2462 -F 1630 Blanco 4983 - 0002 -0012; the south 62 feet of Lot 1, Block 2, McNorton Addition 1,000.00 0.00 977.00 6 1105 99- 6863 -E 2614 McCain Drive 3416-0008-0100; Lot 10, Block 8, Hi: way Village Section II 7,800.00 0.00 7,777.00 7 1 180 02- 6057 -C 2501 Johanna 4375- 0002 -0090; Lot 9, Block 2, Lexington Subdivision 2,000.00 0.00 1,977.00 8 1228 93- 5533 -G 10845 Ma field Drive 7901 -0001 -0100; Lot 10, Block 1, Shad Acres Subdivision 3,275.00 181.72 1,181.41 9 1244 02- 3233 -C 1617 Tenth Street 2451- 1003 -0230; Lots 23 and 24, Block 1003, Fitchue Place 1,000.00 0.00 733.02 10 1245 02- 3260 -B 914 Azalea Drive 216400070210; Lot 21, Block 7, Driscoll Village 7,000.00 1,041.37 63.76 11 1247 04- 5812 -B 1434 Main Drive 3593- 0004 -0330; Lot 33, Block 4, Hudson Acres Addition 1,000.00 0.00 950.68 12 1250 04- 6531 -3 6546 L ons Street 0063 - 0002 -0200; Lot 20, Block "B ", Airline Subdivision 7,500.00 410.44 4,967.32 13 1261 03- 1217 -C 2934 Blake Street 7193- 0002 -0030; Lots 3 and 4, Block "B ", R- olds Addition 1,500.00 0.00 1,220.56 14 1323 04- 5812 -B 1649 16th Street 2451- 1403 -0070; Lots 7 and 8, Block 1403, Fitchue Place 1,000.00 0.00 977.00 IS 1343 04- 6735 -H 8938 McGloin Road 0280 -0080 -1000; 1.0 acre in the John H. Gallagher Survey #I66, Abstract 1009 1,500.00 0.00 1,477.00 16 1375 04- 7063 -F 1102 Navi ation Boulevard 2197 -0000 -0680; 50 feet by 130 feet of land out of the Tom Whelan Tract, described by metes and bounds in County Clerk's File #402065 5,000.00 266.52 2,561.90 17 1377 04- 7165 -A 324 19th Street 9640 -0001 -0010; Lot 1, Block 1, Wilburn Addition 700.00 0.00 656.69 18 1385 04- 6477 -B 9026 McNorton Road 4984 -0004 -0190; Lot 19, Block 4, McNorton Subdivision #2 1,000.00 0.00 467.83 19 1386 03- 6523 -C 4716 Barrera Drive 1690- 0009 -0065; the south one -half of Lot 6, Block 9, Colonia Hidal:o Addition 1,000.00 0.00 977.00 20 1388 04- 5757 -H 1101 Main Drive 3593- 0002 -0330; Lot 33, Block 2, Hudson Acres Addition 1,000.00 0.00 977.00 21 1392 03- 2635 -F 2315 Howard Street 4528 -0002 -0160; Lot 16, Block 2, Loma Alta Subdivision 2,000.00 0.00 633.12 22 1399 04- 7122 -D 122 Blevins Street 8284 -0007 -0180; Lot I8, Block 7, Southmoreland Addition 5,000.00 227.68 2,831.99 23 1413 97- 5707 -G 509 K' : Sheet 1512 -0023 -0130; a tract of land, being 50.64 feet by 130.98 feet, out of Block 23, Chamberlain Addition, described in Volume 50, Page 164, Deed Records of NCT 1,000.00 0.00 0.00 24 1427 92- 3685 -A 4742 Black'ack Place 2996 -0001 -0300; Lot 30, Block I, Greenwood Park Addition, Unit 1 3,600.00 238.22 1,959.64 25 1448 06- 3719 -F 1609 M Street 8414-0005 -0020; Lot 2 and the East one -half of Lot 3, Block 5, Steele and Lau: in Addition 7,500.00 1,251.39 0.00 26 1455 06- 3312 -B 1017 Home Road 4100 -0006 -0055; the west one -half of Lot 5, Block 6, Laguna Acres Addition 5,751.00 382.14 2,175.76 27 1466 06 -0896 -B 1830 Shel Street 6745 - 0008 -0040; Lot 4, Block 8, Pineda Park Addition 7,000.00 1,095.20 0.00 28 1467 06- 2726 -E 1716 Van Loan Avenue 3443 -0015 -0160; Lots 16 and 17, Block 15, Hillcrest Addition 2,500.00 134.28 870.22 29 1495 06- 4653 -E 1229 Preston Street 2481 -0006-0210; Lot 21, Block 6, Flour Bluff Center 4,000.00 512A2 567.74 30 1496 08- 1371 -B 11-1-37 South access road @ Hart Road 3267 -0008 -0060; 0.154 acre tract of land, in Share VIII of the CC Hart Partition, described in Volume 1521, Page 855, Deed Records of NCT 500.00 0.00 0.00 Total $102,726.00 $9,166.02 $40,534.64 LINEBARGER GOGGAN BLAIR & SAMPSON, LLP ATTORNEYS AT LAW 500 N.SHOREI.INE, SUITE 1 111 CORPUS CHRISTI, TEXAS 78471 (361) 888-6898 FAX (361) 888-4405 May 22, 2009 Ms. Constance Sanchez Interim Director of Financial Services City of Corpus Christi POB 9277 Corpus Christi, Texas 78469 -9277 Re: Consideration of bids received for Tax Resale Properties Dear Ms. Sanchez, COPY As you are aware, our firm represents the City of Corpus Christi in the collection of delinquent property taxes. As part of our overall effort to collect delinquent taxes in the City of Corpus Christi and Nueces County, we regularly post properties for tax sale on a monthly basis. At the sale, if there are no bidders willing to offer the minimum opening bid amount, the property is "Struck Off' to the Nueces County taxing entities for the amount due against it. A Sheriff's Tax Deed is filed in the name of Nueces County, as Trustee for all of the taxing entities owed taxes on the property. We then continue to try to sell these tax resale properties, and when we receive a purchase offer, we bring it forward to the taxing entities for their consideration and action, in accordance with the Texas Property Tax Code. Enclosed please find bid analyses and maps for thirty tax resale properties for which we have received purchase offers. We respectfully request that you place these offers on the City Council's agenda for the Council's consideration and action at their next available regular meeting. If you have any questions regarding this matter, please contact me at your earliest convenience. I will be out of the office from May 25`h through June 1S', so please call me on my cell phone number, 443 -1965, if you wish to speak with me during that time. Sincerely, / Marvin Leary d Area Manager Enclosures: Bid Analyses and maps for 30 tax resale properties —84— Cc: Margie C. Rose Assistant City Manager City of Corpus Christi POB 9277 Corpus Christi, Texas 78469 -9277 Yvonne Haag Director of Neighborhood Services Dept. City of Corpus Christi POB 9277 Corpus Christi, Texas 78469 -9277 —85— ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: 95- 3911 -H; Nueces County vs. William Ira Goodwin 3415- 0001 -0010; Lot 1, Block 1, Highway Village Section 1 10238 N. Harrington - Corpus Christi Date of Sale: September 7, 1999 Amount Due All Entities: 16,260.50 Amount of Bid: 16,000.00 Cost of Sale: 1,266.23 Current Value: 15,179.00 % of Total Due: 98.40% % of Current Value: 105.41% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 3,906.53 3,539.74 Nueces County Education District 1,401.97 1,270.34 City of Corpus Christi 3,645.23 3,302.97 Tuloso Midway Independent School District 6,241.23 5,655.23 Del Mar College 1,065.54 965.49 A 67 FT X 274 FT. RESIDENTIAL LOT WITH A DILAPIDATED MOBILE HOME AND FREE STANDING GARAGE, ALSO IN VERY POOR CONDITION THE PROPERTY IS LOCATED AT THE CORNER OF CHARLES AND N. HARRINGTON NEAR THE TULOSO - MIDWAY ISD PRIMARY SCHOOL. THE PROSPECTIVE PURCHASER IS IRIS JUNE HENDERSON OF CORPUS CHRISTI —86— 605 ROBBY C 0 II C t V cI j• ONOD I o z r: - / L. .r O I . r Z- W fl COUO.TJ �- P a MIMS Al cow) Tar DQ amswer LOTS air .F...rrrr .... IA N • ex> a €R 3/�IbC S31bVH3 j:7 N • ISO „. 2 -4 O A J ARTHUR 1J' )13 at C U 3A100 tywbI �rh N I I .o 3^ittO WOloNIZUVH 1SV3 I.4 • . I.. - u A n 0 fa O I' W n i N U r -. O. v b 1 z > 6 C ru , —87_ • frw Y O 01 j c) ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 92- 8253 -G; Nueces County vs. James Jonathon Jones 2230 -0000 -1140; Lot 114, Ebony Acres 5849 Hall Avenue - Corpus Christi October 3, 2000 26,343.29 2,000.00 2,164.50 24,000.00 7.59% 8.33% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 3,045.10 - Nueces County Education District 2,141.06 - City of Corpus Christi 3,331.39 - Corpus Christi Independent School District 5,131.87 - Del Mar College 990.85 - City Paving & Demo Liens 11,703.02 1,977.00 A RESIDENTIAL LOT, 100 FT. X 200 FT., LOCATED ONE BLOCK OFF LEOPARD STREET NEAR ITS INTERSECTION WITH LEXINGTON BLVD. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THE PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI 641 —88— II4MPSM1 IC fliil -O -II L' IIY! , si� . f72-11 a ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 97- 1188 -H; Nueces County vs. Amistad Builders Inc. 8013 -0003 -0070; The South 100 feet of Lot 7 & the West 3 feet of the South 100 feet of Lot 6, Block 3, 2406 Summers - Corpus Christi November 7, 2000 26,838.01 1,600.00 1,644.13 5,830.00 5.96% 27.44% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 2,665.43 - Nueces County Education District 1,990.28 - City of Corpus Christi 2,918.50 - Corpus Christi Independent School District 4,317.60 - Del Mar College 844.04 - Ci Paving & Demo Liens 14,102.16 1,577.00 A RESIDENTIAL LOT, 53 FT. X 100 FT., LOCATED NEAR THE INTERSECTION OF NORTH PORT AVE. & WEST BROADWAY IN THE HILLCREST NEIGHBORHOOD. MR. PEREZ OWNS THE ADJOINING PROPERTY ON THE WEST SIDE OF THIS LOT. THE PROSPECTIVE PURCHASER IS XAVIER PEREZ OF CORPUS CHRISTI 648 -90- W/NNEBASO E 11111 NBEECCES I iaag nog r MOM OP" WATCH WEST SUMMERS .ti CS SY JOHN • 211:‘ x;. BROADWAY ST SI. - Mat 0 SI. URI ST. tlk WO IMP r 'n' t°Lb "14" u MOORE MESE 0 s 0 O Mita *LIEGES °o ©_ MOM CNN Wawa MOM eta ea JOHN o° °o v nom IIPELUNIE SUMMERS ,yam Warlmir A BROADWAY ST ST ST SI Sr anowninrar nommmoo MonnOrm imitsmmnoi v 9 1 69g • ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: of Total Due: % of Current Value: 97- 2156 -D; Nueces County vs. Paula P. Garza 3593 - 0004 -0110; Lot 11, Block 4, Hudson Acres 1634 Main Dr. - Corpus Christi December 5, 2000 9,398.36 1,000.00 477.50 10,353.00 10.64% 9.66% A VACANT RESEDENTIAL LOT, 55 FT. X 185 FT., LOCATED ONE BLOCK OFF LEOPARD ST, NEAR ITS INTERSECTION WITH SUNTIDE ROAD. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THE PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -92- 657 Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,981.91 110.18 Nueces County Education District 410.37 22.81 City of Corpus Christi 2,188.57 121.67 Tuloso Midway Independent School District 4,216.86 234.44 Del Mar College 600.65 33.39 A VACANT RESEDENTIAL LOT, 55 FT. X 185 FT., LOCATED ONE BLOCK OFF LEOPARD ST, NEAR ITS INTERSECTION WITH SUNTIDE ROAD. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THE PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -92- 657 -93- 667 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: °A) of Total Due: % of Current Value: 00- 2462 -F; Nueces County vs. Joe Uvalle 4983 -0002 -0012; The South 62 feet of Lot 1, Block 2, McNorton Addition 1630 Blanco - Corpus Christi December 3, 2002 26,162.66 1,000.00 864.50 12,400.00 3.82% 8.06% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,224.09 - Nueces County Education District 278.73 - City of Corpus Christi 1,264.87 - Tuloso Midway Independent School District 2,704.12 - Del Mar College 390.07 - City Paving & Demo Liens 20,300.78 977.00 A VACANT RESIDENTIAL LOT, 62 FT. X 100 FT., LOCATED 3 BLOCKS EAST OF RAND MORGAN RD, AND 1 MILE SOUTH OF LEOPARD ST. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THE PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI —94— 984 A 66(1SOeS h•r IYO 4• \ iu• •• •e ^ . •u Y • • • O L PO 1^ Y Z M • • O .. f•• •. ,„•, Ca. D.1••C 14 .0.0 AIM • P P N to el • 62710 • z 0 Jr- :,, a S. I• D.O n + , • 0 a• :0 Io e P O . O aim MI D - i "el • • • 2 0 a 0 2 N CO • • n O I arm .c : act a• O -O —95— 9Q� w ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 99- 6863 -E; Nueces County vs. Ronnie E. Jacobs 3416 -0008 -0100; Lot 10, Block 8, Highway Village Section II 2614 McCain Dr. - Corpus Christi August 5, 2003 57,716.92 7,800.00 869.50 14,369.00 13.51% 54.28% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 8,484.79 - Nueces County Education District 2,597.05 - City of Corpus Christi 9,411.39 - Tuloso Midway Independent School District 14,538.70 - Del Mar College 2,832.17 - City Paving & Demo Liens 19,852.82 7,777.00 A VACANT LOT, 105 FT. X 182 FT., LOCATED 1 BLOCK SOUTH OF LEOPARD ST., AND 1/2 MILE EAST OF MCKENZIE. MR. ONTIVEROS, THE PROSPECTIVE BUYER, OWNS THE ADJOININIG PROPERTY. THE PROSPECTIVE PURCHASER IS JAVIER ONTIVEROS OF CORPUS CHRISTI —96— 1105 - 9 7 - / 7 ) , -' ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 024057 -C; Nueces County vs. Wayne W. Webb 4375 - 0002 -0090; Lot 9, Block 2, Lexington Subdivision 2501 Johanna - Corpus Christi June 29, 2004 17,569.95 2,000.00 770.50 12,672.00 11.38% 15.78% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,600.65 - Nueces County Education District City of Corpus Christi 1,682.06 - Corpus Christi Independent School District 4,133.50 - Del Mar College 589.04 - City Paving & Demo Liens 9,564.70 1,977.00 A VACANT RESIDENTIAL LOT, 100 FT. X 200 FT., NEAR THE INTERSECTION OF AYERS ST. & SPID. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THE PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI 1180 —98— N r m MILO ST. S. .4 • Pe JP 4 t '. 8 JOHANNA' e if E on S 0 S 4. a. ST %° x s a • • • • 3 ✓r s 5,60 -n a n PADaL 1 3 Le.../0 • E 57 /f NEMEC~ Y 5 Tan MIN M MON fl flr an IMHOF (hlwr 35a) De. :T ;wlv:1 ^" S to I ®:1: -5, 0 In m S r r • -Mc A P-D-L E .7 ,t m r 2 0 m r C N H t -.-- t . ifS . 1 t -r N to OI N H —99— naJn' Z ° -1 MILO ST. S. .4 • Pe JP 4 t '. 8 JOHANNA' e if E on S 0 S 4. a. ST %° x s a • • • • 3 ✓r s 5,60 -n a n PADaL 1 3 Le.../0 • E 57 /f NEMEC~ Y 5 Tan MIN M MON fl flr an IMHOF (hlwr 35a) De. :T ;wlv:1 ^" S to I ®:1: -5, 0 In m S r r • -Mc A P-D-L E .7 ,t m r 2 0 m r C N H t -.-- t . ifS . 1 t -r N to OI N H —99— ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: of Total Due: % of Current Value: 93- 5533 -G; Calallen ISD, et al vs. R. K. Stockstill 7901 -0001 -0100; Lot 10, Block 1, Shady Acres Subdivision 10845 Mayfield Dr. - Corpus Christi June 7, 2005 61,853.55 3,275.00 1,255.42 16,275.00 5.29% 20.12% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 5,368.94 175.30 Nueces County Education District 1,909.66 62.35 City of Corpus Christi 5,565.51 181.72 Calallen Independent School District 11,159.44 364.37 Del Mar College 1,666.91 54.43 City Paving & Demo Liens 36,183.09 1,181.41 A VACANT RESIDENTIAL LOT, 62 FT. X 175 FT. , LOCATED 2 BLOCKS SOUTH OF LEOPARD ST., BETWEEN VIOLET RD. AND STARLITE LANE. THE PROSPECTIVE BUYER PLANS TO MOVE A HOUSE ONTO THE LOT FOR HIS PRIMARY RESIDENCE. THE PROSPECTIVE PURCHASER IS MARTIN LOPEZ, JR. OF FALFURRIAS 1228 —100— VIOLCI LEONARD 1111111 r 6 H/RLWOOD CIA aka , ei 111111111741 PA O 2ICPWDOD CIA \ vT 1111 ,11 ▪ IORTR WOOD DR MMC = == CCM DROWI; WOOD CM same a y.aa b V�• DRIVE ' t LEONARD 1. STARLIT( - 1 0 1 - /229 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: °A) of Total Due: °A, of Current Value: 02- 3233 -C; Nueces County vs. Susan Burgin 2451 - 1003 -0230; Lots 23 and 24, Block 1003, Fitchue Place 1617 Tenth St. - Corpus Christi July 29, 2005 22, 309.65 1,000.00 2,597.02 7,812.00 4.48% 12.80% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,788.87 - Nueces County Education District City of Corpus Christi 1,881.65 - Corpus Christi Independent School District 4,650.32 - Del Mar College 654.34 - City Paving & Demo Liens 13,334.47 733.02 A VACANT RESIDENTIAL LOT, 50 FT. X125 FT., LOCATED ONE BLOCK WEST OF SIX POINTS. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THE PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT INC. OF CORPUS CHRISTI -102- 1244 RuCCCR COUNTY •RORAISAL DISTRICT m MM. a Sr 01 011 s --! 01•96i uer ■t PEP•alott MC KENZIE /I_ • • AYRES I cA r r t*%„ to Rabb" 8311 4 t. • 4 41 • 4* Oink_ ST 1� b El O El M°a0E IMMO 01 °s Oral Mfl aa r- O ter saz►'S ao� o0a 110E-'Ln- ST. • CLIFFORD i k se. S arm p watts amas snow PALMERO ST A as k•' ST. -103- Tr!: /244 r ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 02- 3260 -B; Nueces County vs. Gilberto Sierra 216400070210; Lot 21, Block 7, Driscoll Village 914 Azalea Dr. - Corpus Christi July 5, 2005 26,821.05 7,000.00 1,999.52 31,406.00 26.10% 22.29% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 5,376.65 1,002.42 Nueces County Education District City of Corpus Christi 5,585.61 1,041.37 Corpus Christi Independent School District 13,614.86 2,538.34 Del Mar College 1,901.96 354.60 City Paving & Demo Liens 341.97 63.76 AN 861 SQ. FT. WOOD FRAME HOUSE ON PIERS, ON A 54 FT. X 129 FT. LOT, LOCATED NEAR THE INTERSECTION OF BUDDY LAWRENCE & NUECES BAY THE HOUSE IS IN POOR CONDITION. THE PROSPECTIVE BUYER LIVES NEXT DOOR TO THIS PROPERTY. THE PROSPECTIVE PURCHASER IS GUILLERMO SUAREZ OF CORPUS CHRISTI 1245 -104- 4,412;: • i 4 N il+A ,C_ O U' ACACIA DR. o n r 0 N 0 NANDINA DR w. LIGUSTRUM DR. GARDENIA a O a a ®'Th'IJQI5"Ift AltidU E A DR. ItUflui A r0 Y. 0 99 I41.1ECES:iy Vb •D m A m 0 N St LC to 3 W O 0) • -105- tit- 4 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 04- 5812 -B; Nueces County vs. Juan L. Miranda 3593 - 0004 -0330; Lot 33, Block 4, Hudson Acres Addition 1434 Main Dr. - Corpus Christi July 5, 2005 9,701.05 1,000.00 1,780.57 8,282.00 10.31% 12.07% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,175.99 - Nueces County Education District City of Corpus Christi 1,149.11 - Tuloso Midway Independent School District 3,017.03 - Del Mar College 395.94 - City Paving & Demo Liens 3,962.98 950.68 A VACANT RESIDENTIAL LOT, 55 FT. X 185 FT., LOCATED 2 BLOCKS SOUTH OF LEOPARD ST., NEAR ITS INTERSECTION WITH SUNTIDE ROAD. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THIS PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -106- 1247 -10/297 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: of Total Due: % of Current Value: 04- 6531 -B; Nueces County vs. Harold Woodson 0063 -0002 -0200; Lot 20, Block "B ", Airline Subdivision 6546 Lyons St. - Corpus Christi August 2, 2005 17,170.07 7,500.00 579.50 11,546.00 43.68% 64.96% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1L,0 -11 19_ 392 26 Nueces County Education District City of Corpus Christi 1,058.67 410.44 Corpus Christi Independent School District 2,602.98 1,009.15 Del Mar College 364.54 141.33 City Paving & Demo Liens 12,395.92 4,967.32 A VACANT RESIDENTIAL LOT, 56 FT. X 166 FT., LOCATED ONE BLOCK EAST OF AIRLINE RD., NEAR ITS INTERSECTION WITH CIMARRON RD. THE PROSPECTIVE BUYER OWNS AND OCCUPIES THE ADJOINING PROPERTY. THE PROSPECTIVE PURCHASER IS NOE M. PAEZ OF CORPUS CHRISTI -108- 1250 H33s; 390 1eolooM N UNAFNUN OLV0 r O • C- A Orr .. Woo Y .. . ~._ S ..P k y • • A.V. a - - i iv Woo Y I ~._ S el 11. k y • • A.V. el .n . 4 - I N t 0 b ?0 I at I �N 0 Y Y • NI ale N N y CM I E VC Is V COASTAL NNO OR 111VN[C41C0 M NYRKA WINO OR $ G. Or 9:' R C N 0 b .a YT N 1 , I ( Cl .».r- -- .emu:•..•_.. -ios- �N N e3 ,/ 9' p tm I Cf) ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: cYci of Total Due: of Current Value: 03- 1217 -C; Nueces County vs. Billy R. Hawkins 7193- 0002 -0030; Lots 3 and 4, Block "B ", Reynolds Addition 2934 Blake St. - Corpus Christi October 4, 2005 77,527.20 1,500.00 1,120.50 8,282.00 1.93% 18.11% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,622.79 - Nueces County Education District City of Corpus Christi 1,702.57 - Corpus Christi Independent School District 4,223.49 - Del Mar College 596.97 - City Paving & Demo Liens .. 70,601.94 1,220.56 A VACANT RESIDENTIAL LOT, 100 FT. X 150 FT., LOCATED BETWEEN MORGAN AVE. AND GREENWOOD, NEAR ROSE SHAW ELEMENTARY SCHOOL.. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THIS PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -110- 1261 C t. -1- 6 033UNJ0 POST n Y a I AVE xA arms W a ram MOW VIRGINIA A N 7 O � O . k A E. R 0 r. a N N N a 3 A { N $ LN i }L� S ,o! 4 1:. II 2 & :.I CHEYENNE • ST W41117ninangehni 01,1�y MOHAWK AVE. c C, 'Er SE ti N INOL E 0 SAGE AVE. MEM ROE S EWOOD / 9 / a 6 Z v NI • 41117 11 • ` m SE ti N INOL E 0 SAGE AVE. MEM ROE S EWOOD / 9 / a ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: • of Total Due: • of Current Value: 04- 5812 -B; Nueces County vs. Cezar Galindo 2451- 1403 -0070; Lots 7 and 8, Block 1403, Fitchue Place 1649 16th St. - Corpus Christi August 1, 2006 24,318.33 1,000.00 848.89 5,453.00 4.11% 18.34% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 2,264.54 - Nueces County Education District City of Corpus Christi 1,947.10 - Corpus Christi Independent School District 4,209.97 - Del Mar College 798.07 - City Paving & Demo Liens 15,098.65 977.00 A VACANT RESIDENTIAL LOT, 50 FT. X 125 FT., LOCATED JUST OFF AYERS ST., NEAR WYNN SEALE JR. HIGH SCHOOL. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THIS PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -1 1 2- 1323 II MOM a • • a MENEWZIE ini.31.11111E an MI MS MIEM"MM Mr" NM' OlF; r• /PM SEM .A MINIM AgE1111•1• ItaintiS M1211=1E1111 alte•N•1111 Iti1101111421 air ITN la IL= I MIKE la ,E0E111•1 Wein 1171••• IP•fll 11191.fl`l MIN lwitMil IlliMPIE1 1710211tE1:1M EMI= NM allitlt11•11 MIMI= al MI ERNI EMI la= SMEMINI ging 3111:PCIE ELIZAStril sr &MINIM 111111.14 MIME= MU/a Malta OEM= 111111:111!5AS I st S St tt, 111Pallrilge• ESP ''''.111EM Rn 111111ns rsa la•PC =OM fl SE an" 0. or wean W1 . tit • in Stela ';"! • a MI • MEM • - SAM 11/4 . 5s — 3 — .2 ? ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: of Current Value: 04- 6735 -H; Nueces County vs. Robert Rosales 0280 -0080 -1000; 1.0 acre in the John H. Gallagher Survey #166, Abstract 1009 8938 McGloin Rd. - Corpus Christi October 3, 2006 10,485.13 1,500.00 815.50 6,000.00 14.31% 25.00% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 928.46 - Nueces County Education District City of Corpus Christi 900.32 - Tuloso Midway Independent School District 2,428.13 - Del Mar College 321.95 - City Paving & Demo Liens 5,906.27 1,477.00 A VACANT RESIDENTIAL LOT, 91 FT. X 479 FT., LOCATED JUST OFF CLARKWOOD RD., 1 MILE SOUTH OF HWY. 44. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THIS PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -114- 1343 • ! NO ,l. :_ . •.: 5 MASTER AP 10 1'h. 3004-0-1400 IC 311liffillina k-a unvnn annumni soggeLmand:9stan 04 Ti2 3 0/ 70 Ac .455E 55 Oe 49 I 13.182 la 36 2130-148-13N -1305 -V. /1 33/ to ••••1 -4 OLIN rr ROAD . . A? .1.1- 15- 9, T2 2_ 7 7-A2 1 30 Alf 3994.0- /00 '1°5 2 go- Bo- 3oo jt.L.25, 149 11)/ AC 280-130 I 'Rai • Thlt 18 • II AC I ZOO-21-19 II AC 290-21-21 200u0;044 01.117 AC 280-21-21 00•40107•1 re IA 280110-200 30-200 an-200 BO- 20 - 200 211737 AC - 30/1.2.1 12.272 AC 101•003160 (r. 1 ) -- 260-50- 140 '1,1) • •■ 250-50.110 2130-50-130 260-50-120 260-50-100 —101 -101/ -403 COUNTY ROAD No 31 —115— ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 04- 7063 -F; Nueces County vs. Juanita Ward Beall 2197 - 0000 -0680; 50 feet by 130 feet of land out of the Tom Whelan Tract, described by metes and bounds in County Clerk's File #402065 1102 Navigation Blvd. - Corpus Christi February 6, 2007 15,985.13 5,000.00 1,169.50 6,875.00 31.28% 72.73% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,057.81 253.48 Nueces County Education District City of Corpus Christi 1,112.20 266.52 Corpus Christi Independent School District 2,732.45 654.77 Del Mar College 391.54 93.82 City Paving & Demo Liens 10,691.13 2,561.90 A VACANT LOT, 50 FT. X 130 FT, LOCATED ON NAVIGATION BLVD., 2 BLOCKS NORTH OF IH -37. THE PROSPECTIVE PURCHASER IS TERRY BERNAL OF CORPUS CHRISTI —116— 1375 Hwy: NO3? C) 0 0 C) 0 MARGARET 0 PI-118,44...; • C z o3 2 4. mssessoAs —117— et Ocir C to tb eo /33 7,0• /6 /75-1 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax 1D# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: of Total Due: % of Current Value: 04- 7165 -A; Nueces County vs. Jesus F. Preza 9640 -0001 -0010; Lot 1, Block 1, Wilburn Addition 324 19th St. - Corpus Christi March 13, 2007 18,365.01 700.00 1,169.50 2,065.00 3.81% 33.90% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 909.79 - Nueces County Education District 498.03 - City of Corpus Christi 985.98 - Corpus Christi Independent School District 1,710.57 - Del Mar College 302.48 - City Paving & Demo Liens 13,958.16 656.69 A VACANT RESIDENTIAL LOT, 24 FT. X 73 FT., LOCATED ON 19TH ST: , JUST SOUTH OF COMANCHE ST. THE PROSPECTIVE PURCHASER IS JOSE ARNOLD DUARTE OF CORPUS CHRISTI -118- 1377 T 1111167 t ue Tp(N `sir ! E` I I00o.10_E0o`.: ' 4111110 iiiiiiac��� 1'11001435 L . de�odm�e `F torun CG_ ti0000� ' \��e1ss ��ee S,NEE, , , so a111;00OMIghi0��Q� seeA pN ,r-MC \ `• _ _ — w !run ��� �.oi 1 I••• to T �' 1 1 rl w < a G II I 1 :i /- \I, 1 11 .7- a . _ tl NINETEENT 11 1 , Gnv Tit( ET M CROSSTOWN -119- LOTUS - St O1 gRIPULIPg 2 ", jai ALinio as matom lingo MI IR St 121112111111 0 h9,! a A +E ant tan arra � s Mani are Set alCIE innti n 0 L n 1111:_ It 0 i a O aP q ►W,: u MLR a a 0 0 n n 331 A EXPRESSWA /377 ._1 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 04- 6477 -B; Nueces County vs. James Huddler 4984 - 0004 -0190; Lot 19, Block 4, McNorton Subdivision #2 9026 McNorton Rd. - Corpus Christi May 1, 2007 32, 579.20 1,000.00 993.50 8,570.00 3.07% 11.67% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,277.89 - Nueces County Education District City of Corpus Christi 1,250.19 - Tuloso Midway Independent School District 3,321.54 - Del Mar College 445.95 - City Paving & Demo Liens 26,751.46 467.83 A VACANT RESIDENTIAL LOT, 92 FT. X 207 FT., LOCATED 1 BLOCK EAST OF RAND MORGAN RD., AND 1 MILE SOUTH OF LEOPARD ST. THE PROSPECTIVE BUYER PLANS TO BUILD AFFORDABLE HOUSING ON THIS PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -120- 1385 fiz' r*1.., v/ 73nt21 IV o A b6( 5504!S rake ,ya 6 yZ Y s 0OJ y ♦ L . c' • PI C /NE " 0.0 el If a Al ▪ wC0 • •a, c 0 0 0 r N.a XALC A O.0 X 0 0 0 IOW L "a.. ass 9 bWV 0 a. Y N i a..• . ti CO H P 0 — Z 0 = c iS t e - :WD z CO • lace S • su al >a. • PO stamsueasua O -o A L Z ROA' N m " P 8 —121— 2Q,4•-•A' . . MUNE X 0 0 0 IOW L "a.. ass 9 bWV 0 a. Y N i a..• . ti CO H P 0 — Z 0 = c iS t e - :WD z CO • lace S • su al >a. • PO stamsueasua O -o A L Z ROA' N m " P 8 —121— 2Q,4•-•A' . . ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: of Current Value: 03- 6523 -C; Nueces County vs. Frank D. Armstrong 1690 - 0009 -0065; The South one -half of Lot 6, Block 9, Colonia Hidalgo Addition 4716 Barrera Dr. - Corpus Christi May 1, 2007 16,832.29 1,000.00 1,226.50 8,205.00 5.94% 12.19% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 2,600.96 - Nueces County Education District City of Corpus Christi 2,762.10 - West Oso Independent School District 6,879.45 - Del Mar College 1,011.88 - City Paving & Demo Liens 3,577.90 977.00 A VACANT RESIDENTIAL LOT, 50 FT. X 164 FT., JUST OFF WEST POINT RD., & 2 BLOCKS EAST OF SO. PADRE ISLAND DR. IN THE MOLINA NEIGHBORHOOD. THE PROSPECTIVE PURCHASER IS PABLO AVILA OF ROBSTOWN -122- 1386 t. C -4 7 0 BUSH AVE. Co n a rn 0 se e abt Z./ Alibi SA DOR 2 BUSH AVE. 11211 MOLINA DR. Ern I lit 11..io: aR� CNVgCN IL s?.. , .. . , . MII... UM BARRERA DR. '0 0 - F-. O 3 NO./4 ; Mat r ; -4 '_Ctt.osL‘ E SIL• L. : Ogre I ink amintinavar cascaum • -123- GS ; s• se ANGELA • 1. - : DR. • ; /396 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 04- 5757 -H; Nueces County vs. Juan T. Reyes 3593 -0002 -0330; Lot 33, Block 2, Hudson Acres Addition 1101 Main Dr. - Corpus Christi July 3, 2007 26,644.02 1,000.00 1,286.50 27,263.00 3.75% 3.67% ;Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 2,438.81 - Nueces County Education District City of Corpus Christi 2,348.92 - Tuloso Midway Independent School District 6,304.02 - Del Mar College 869.50 - City Paving & Demo Liens 14,682.77 977.00 A RESIDENTIAL LOT, 55 FT. X 185 FT., WITH A SMALL DILAPIDATED WOOD FRAME HOUSE, LOCATED 3 BLOCKS SOUTH OF LEOPARD ST., NEAR SUNTIDE THE PROSPECTIVE BUYER PLANS TO REHAB THE HOUSE OR DEMOLISH IT AND BUILD AFFORDABLE HOUSING ON THIS PROPERTY. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI -124- 1388 J 7 —125— E -�j ,, _ - •-_,.,. t _• . .. :• -- :- OVOtl xO1NO3f CNNC }1 t Li e i, ~ i Yy t "`` S 4 • i it S •. •• ! Y . •—•...•-•,. rte 1 I I ' I v r Y 4. ?^..a e • .... t sl A d Y Y Y " Y C 3--.a' E- . -. ! - Y t C Y i a "•'' - E Y • - a C a a " 9 6 - 6 a a a e " a a '- O x y i O p I w a a 6 C a a ? 6 " Y i " i - a Y C 4 6 ' 1 a n • •,.. • It, 6 6 �•` • 6 6 6 1 , , s 6 6 w i A O 6 w ' �..- 0 n ti > 2 I• 6 a s : is = • V 1 " 6 ry _ _ it 6 . n ••• . • w w ■ m 8 • " t 4 . . ter-oc . t dines i 1.4 $ p t ° lui/4 i t. •: • id I ig F.: • T w t t L rxxr rr e C - . ' N a i• - - —125— E ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 03- 2635 -F; Nueces County vs. Trinidad Puente 4528- 0002 -0160; Lot 16, Block 2, Loma Alta Subdivision 2315 Howard St. - Corpus Christi July 3, 2007 32,782.48 2,000.00 2,127.50 6,000.00 6.10% 33.33% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,277.15 - Nueces County Education District City of Corpus Christi 1,336.97 - Corpus Christi Independent School District 3,239.99 - Del Mar College 459.56 - City Paving & Demo Liens 26,468.81 633.12 A 600 SQUARE FOOT HOUSE, HEAVILY DAMAGED BY FIRE, ON A 40 FT. X 100 FT. LOT, 1 BLOCK WEST OF 19TH ST. NEAR THE GULF COMPRESS. THE HOUSE IS IN EXTREMELY POOR CONDITION AND SHOULD PROBABLY BE DEMOLISHED. THE PROSPECTIVE PURCHASER IS PABLO AVILA OF ROBSTOWN -126- 1392 vie 91,11:= IFonus �ll0 ���OOo6 WINI11:111: ''x11111 11110111 ;111111111 �\A� � nPm > �i, :MIngoo�;;egegOOIN11O UNIOIMonilla l • p • �OAcd�l000 In t/17 It K _a VA, a A a /9 IONS S{ •s Meal MUM MUMP a� NUMMI OCCial II QMO ation lit 811 Ma a al a o a E 9 Mo 0 ,Q• n o MN MN a _a a to 0 a la IZ is n. n n CROSSTOWN -127- EXPRESSWAY ?92 x M -4 Y rR; cJ ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: of Current Value: 04- 7122 -D; Nueces County vs. Lucille B. McVay 8284 - 0007 -0180; Lot 18, Block 7, Southmoreland Addition 122 Blevins St. - Corpus Christi August 7, 2007 32,071.29 5,000.00 1,134.50 8,468.00 15.59% 59.05% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,799.72 216.92 Nueces County Education District 295.45 35.61 City of Corpus Christi 1,889.01 227.68 Corpus Christi Independent School District 3,974.02 478.98 Del Mar College 616.63 74.32 City Paving & Demo Liens 23,496.46 2,831.99 A VACANT RESIDENTIAL LOT, 50 FT. X 140 FT., LOCATED JUST OFF AYERS ST., 2 BLOCKS WEST OF DEL MAR COLLEGE EAST CAMPUS. THE PROSPECTIVE PURCHASER IS TIBURCIO SOTO, JR. OF CORPUS CHRISTI —128— 1399 tl • in t atita MEI ale sum MEM Mae a flea 8 a If AYERS ac a O um M1 t y ant ...a v' V SP S a I ar* NAPLES i n a Y a N I m ta C .. I ....Y, m Ow.. ataitik 0 a co e 111111a1111 1� 8 0 nfl r a TO MIN IN III I ii al air COG EMMINEW UNIMMEW 7 LIP Mae UMW E(ONIOA AMMER ANNA POI IO (ES COUNTY APPRAISAL OI5:PL[1 STREET a a A .aa V a Pop rim nfl ST PEE yN V a Fm ul O • C O t a • to b t IA O IN 0 PI R S S Fc v. • x SL SEN! 7 a vs x • STR E El C N 0 8 II • AV( I Y O • Y AY I. —129— C DRIVE N C C' /?99 R E P A R K 0 z a O 2 —129— C DRIVE N C C' /?99 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 97- 5707 -G; Nueces County vs. Louis H. Palacios 1512 -0023 -0130; A tract of land, being 50.64 feet by 130.98 feet, out of Block 23, Chamberlain Addition, described in Volume 50, Page 164, Deed Records of 509 King St. - Corpus Christi January 29, 2008 55,228.48 1,000.00 1,319.50 6,903.00 1.81% 14.49% A VACANT RESIDENTIAL LOT, 50.64 FT X 130.98 FT., LOCATED ON THE WEST SIDE OF SOUTH BLUFF PARK ACROSS FROM THE AL KRUSE TENNIS CENTER. THE PROSPECTIVE BUYER PLANS TO MOVE A FOUR -PLEX ONTO THE PROPERTY. THE PROSPECTIVE PURCHASER IS GLENN R. PETERSON OF CORPUS CHRISTI 1413 -130- Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 4,796.17 - Nueces County Education District 2,016.61 - City of Corpus Christi 5,371.66 - Corpus Christi Independent School District 8,886.96 - Del Mar College 1,563.07 - City Paving & Demo Liens 32,594.01 - A VACANT RESIDENTIAL LOT, 50.64 FT X 130.98 FT., LOCATED ON THE WEST SIDE OF SOUTH BLUFF PARK ACROSS FROM THE AL KRUSE TENNIS CENTER. THE PROSPECTIVE BUYER PLANS TO MOVE A FOUR -PLEX ONTO THE PROPERTY. THE PROSPECTIVE PURCHASER IS GLENN R. PETERSON OF CORPUS CHRISTI 1413 -130- 11. /1 TN 11 U1_1 12 TR Min =ffim= -- -- -- OBINNISSII = In nein O ion nEl 1 In 1=31Wein tWirpon• s lono—won 040 alrellia'sarmni MEM 11==111•11Into • minom - —fl- oat ni nit /0 TH laAtt L.. 10 TH ALANEDA EMI'S! In/ n1 0 • SE sr4 ask:a - a MI WM 1 li n _*_t raw,: roaaion 'arclo-er in 4orris mere: want Mr! INV rootin mown taiartrer asoranyo:n 011130 inl S-Id IOW Wilart! (10...1.911t.10011• il aTEN:1! MIN 11:50111 la 1414:141 II- Vet a. LE _ L 7 Sr. 311113....lianraint 0 0 Sr KING 4119115171"7" 7' SE CARNIZO I • ant === Won. :now. W.DPM91141- 15041 = a wgr • **111,111,4,411M t: SE oo • 314//3 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 92- 3685 -A; Nueces County vs. David Corder 2996- 0001 -0300; Lot 30, Block 1, Greenwood Park Addition, Unit 1 4742 Blackjack Place - Corpus Christi March 4, 2008 47,651.44 3,600.00 613.50 9,137.00 7.55% 39.40% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 3,428.64 214.89 Nueces County Education District 471.57 29.56 City of Corpus Christi 3,800.90 238.22 Corpus Christi Independent School District 7,512.47 470.84 Del Mar College 1,170.53 73.36 City Paving & Demo Liens .31,267.33 1,959.64 A VACANT RESIDENTIAL LOT, 59 FT. X 104 FT., LOCATED 1 BLOCK EAST OF GREENWOOD, BETWEEN GOLLIHAR AND TROJAN. THE PROSPECTIVE PURCHASER IS TIBURCIO SOTO, JR. OF CORPUS CHRISTI 1427 —132— aoa us uq v 1000W b.() ; ; #: • MIUMMEMEMUMMU IINIMMEMINIMMES ao 1Dtrid- 4. •■•• .r.a. ® 'n 'tel::::&:1::“.k•kt:tr. t;t: ...no an. le . 4Ln Te. ; • • 301147 hl AIN Joao t t RE : • : ..• o . f • ;1 GOL L I HA R. 11-1411K ("PT 2. t e !In PD 32101404r I•• •114,1 r --h a 3 t In rn C t. — 0 iD rh - c ir if 1U .14 RD. C 1 co to -133- 14'27 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: of Total Due: of Current Value: 06- 3719 -F; Nueces County vs. Basilia A. Cortez 8414- 0005 -0020; Lot 2 and the East one -half of Lot 3, Block 5, Steele and Laughlin Addition 1609 Mary St. - Corpus Christi July 1, 2008 7,354.03 7,500.00 1,619.50 33,911.00 101.98% 22.12% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,442.74 1,153.66 Nueces County Education District City of Corpus Christi 1,564.96 1,251.39 Corpus Christi Independent School District 3,733.58 2,985.48 Del Mar College 612.75 489.97 A 2 1/2 STORY WOOD FRAME HOUSE ON A 72 FT. X 138 FT. LOT, 2 BLOCKS SOUTH OF AGNES ST., BETWEEN BROWNLEE AND THE CROSSTOWN THE HOUSE IS HABITABLE AND IN FAIR CONDITION OVERALL. THE PROSPECTIVE PURCHASER IS LILY SALLAM OF FREMONT 1448 —134— jo -D el 0 c 0 0 MIPPEMMOWE alat gnome MAKIMMMOICT WORM s ICING MMIa 1 INeriz IrlireAL ammat C In 19 7H IlhiliHif 11111111 yal2 IQ alai. o asf s , MME igE hias._ 1 7TH morn Issa... Rf ligat aallE SS TIM 14TH wipe spa =mom emit t� 8 QE mom WNW gloolmt sionommOM WW2 mammy WOW WAR 'ma Mit VOWS -c i In 1-i Im SEM Min ran m ly n C m St" STREET WOW Mi dmat NOM Ul ti ti U U �8c ti In orlreaton wort gmumm I CAB eAMe WKS g N ti LROWNLEE await TM sae ton 'WOE scum :Mgt mos a _ mom es sem es ems mmumm MI; WM awe opm, m m ti STREET anis mat S STREET Sill O saw. opt UN/an ONEIME. aat9 . T m m -I 12TH so 120:11 Wt. {tv MOM ezer IBM Ism' tip !� I6TH �1 momomillik manage mots ems ow- OI stailiatillio r • m D.-r m r- s O BLVD,.� Arm m�� V STREET W -135- /4 411 761MT72 O m a ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: of Current Value: 06- 3312 -B; Nueces County vs. Domingo De Los Santos 4100 - 0006 -0055; The West one -half of Lot 5, Block 6, Laguna Acres Addition 1017 Home Rd. - Corpus Christi August 5, 2008 20,379.45 5,751.00 1,735.50 8,020.00 28.22% 71.71% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 2,163.04 358.48 Nueces County Education District City of Corpus Christi 2,305.77 382.14 West Oso Independent School District . 5,786.54 959.01 Del Mar College 845.41 140.11 City Paving & Demo Liens 9,278.69 2,175.76 A VACANT RESIDENTIAL LOT, 46 FT. X 175 FT., LOCATED ACROSS THE STREET FORM THE GABE LOZANO GOLF COURSE IN THE MOLINA NEIGHBORHOOD. THE PROSPECTIVE PURCHASER IS FIDENCIO FELIX HERNANDEZ OF CORPUS CHRISTI -136- 1455 t% = !!�ELVIRA' DR. 1 o't JOSE DR. I ' n 4 n r> l< • F e /•n In Fr • 1 t, •"VALDEZ DR. • n .'u e U YOLANDA DR. — l L ; O t o %4 T/Q .. a0 g.4 Mc, a a CI • E', • ti( et P O -.0 % /1/ pit / t ELVIRA • 4 * CRY g. MI �� 1111115111a v •1 " • a '.. a MIMIENCE • • . . • 's IA - S i a L WITS 1111 's F `• N. • I *41 J(.) o a.i .,, •%1,. a Mal .a { A.,6 i Rg••"a tE r.. .1 ^:k R•PLO� •A % S • .,c n b ^' . 1 ii; r •L,. P'! L • • • Jena % a i a a O le" WEST THERESA ST . eg . N L PARK :EAST THERESA ST •. -r . b; .. FI _. °• %. 7 MI ! . 1111115111a v •1 " • a '.. a MIMIENCE • • . . • 's IA - i a L WITS 1111 's F `• N. • `mot . o a.i .,, •%1,. a stmaaasta az tssalla rtranna ErillEharit MENEM EOM r O r I ; MEWS Mel N C.OU TY ROAD —137— 0 THERESA St MOIR I . z. • I» 1111115111a v - MIMIENCE RIENINMEIF EIIIIMININIE gin. - MIE y�• t $ L WITS 1111 's F `• N. • nrarian .,, EIZESNICIM Mal rat N C.OU TY ROAD —137— 0 THERESA St MOIR . z. • I» 1111115111a ,t .s RIENINMEIF MEM 1• E y�• t $ L sc.,,,. .,, UAW COLUMBIA pa O rn°°' .c u • C N a ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 06- 0896 -B; Nueces County vs. Armando Rodela 6745 - 0008 -0040; Lot 4, Block 8, Pineda Park Addition 1830 Shely St. - Corpus Christi November 4, 2008 12,210.82 7,000.00 1,817.50 40,915.00 57.33% 17.11% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 2,409.32 1,022.56 Nueces County Education District City of Corpus Christi 2,580.48 1,095.20 Corpus Christi Independent School District 6,197.12 2,630.17 Del Mar College 1,023.90 434.56 AN 836 SQ. FT. WOOD FRAME HOUSE ON PIERS, IN FAIR CONDITION, ON A 62 FT. X 120 FT. LOT, 1 BLOCK EAST OF THE CROSSTOWN BETWEEN PORT AND THE HOUSE NEEDS SUBSTANTIAL REPAIRS BUT IS A GOOD CANDIDATE FOR REMODELING. THE PROSPECTIVE PURCHASER IS ART LOPEZ OF CORPUS CHRISTI 1466 -138- SSE C°C 0 C N C eummunwris ROBIN DRIVE 414 nt 111NJaiIMa ARLINGTON DRIVE .. I .., 0 : 111NJaiIMa ARLINGTON DRIVE WH TTIER DRIVE WHITING TARLET ON fll r N In • rn DRIVE s IS= St 1111111011111 VIEW niza DRIVE eiraan onatins 7, I <no Au Nis a a C? TRENTON snilili SHELY ST. SHELY St 0 0 z r r stimpa units alum mai HAWTHORNE DRIVE 1111111llarlha InDRIE a 99? ON ,lVMHOIN r -139- .. I .., 0 .. .. 4 WH TTIER DRIVE WHITING TARLET ON fll r N In • rn DRIVE s IS= St 1111111011111 VIEW niza DRIVE eiraan onatins 7, I <no Au Nis a a C? TRENTON snilili SHELY ST. SHELY St 0 0 z r r stimpa units alum mai HAWTHORNE DRIVE 1111111llarlha InDRIE a 99? ON ,lVMHOIN r -139- ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 06- 2726 -E; Nueces County vs. Harrison J. Murray, Jr. 3443- 0015 -0160; Lots 16 and 17, Block 15, Hillcrest Addition 1716 Van Loan Avenue - Corpus Christi July 7, 2008 13,428.92 2,500.00 992.50 36, 349.00 18.62% 6.88% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,722.30 125.82 Nueces County Education District City of Corpus Christi 1,838.16 134.28 Corpus Christi Independent School District 4,440.70 324.40 Del Mar College 722.46 52.78 City Paving & Demo Liens 4,705.30 870.22 A 73 YEAR OLD WOOD FRAME HOUSE ON PIERS, 1,228 SQ. FT., ON A 50 FT. X 130 FT LOT, 5 BLOCK NORTH OF IH -37, & 3 BLOCKS EAST OF NUECES BAY THE HOUSE NEEDS EXTENSIVE REPAIRS THROUGHOUT THE BUYER PLANS TO REHAB THE PROPERTY FOR AFFORDABLE HOUSING. THE PROSPECTIVE PURCHASER IS STEAMBOAT CHRISTI INC. OF CORPUS CHRISTI —140— 1467 TFNAS HIGHWAY NO9 EXPRESSWAY INTERSTATE HIGHWAY NO J7 MINTON 4. s • Jet 6Ci I �.'y� • aa MEW a i uuuIn MIMES a A rrr � 4 io '= f ' �' • nova a i n in =ma ear Ira nom IUf ea a a_Q.z na� O aa� i =al a EMI OE MOP P - On ganatimi —� d .a..L• d aa MEW a i uuuIn MIMES a A rrr � 4 io '= f ' �' • nova a i n in =ma ear Ira nom IUf ea a a_Q.z na� O aa� i =al a EMI OE MOP P - On ganatimi —� d MIMES a A rrr � 4 io '= f ' �' • nova a i n in =ma ear Ira nom IUf ea a a_Q.z na� O aa� i =al a EMI OE MOP P - On ganatimi —� d .a..L• d a a_Q.z na� O aa� i =al a EMI OE MOP P - On ganatimi —� d .a..L• d MOP P - On ganatimi On ganatimi ...... RN nwamdiell a 1 I I.. 0 as- aaa— a Sr LOA in 41-7 —� d .a..L• d i.- . _— e I I _ ...... RN nwamdiell a 1 I I.. 0 as- aaa— a Sr LOA in 41-7 a 1 I I.. 0 as- aaa— a Sr LOA in 41-7 41-7 ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 06- 4653 -E; Nueces County vs. Gary Ennis 2481 - 0006 -0210; Lot 21, Block 6, Flour Bluff Center 1229 Preston St. - Corpus Christi February 3, 2009 15,272.53 4,000.00 1,075.75 53,125.00 26.19% 7.53% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 2,599.84 497.79 Nueces County Education District City of Corpus Christi 2,676.24 512.42 Flour Bluff Independent School District Del Mar College 5,962.56 1,141.66 1,068.74 204.63 City Paving & Demo Liens 2,965.15 567.74 A WOOD FRAME HOUSE ON A SLAB FOUNDATION, 1,320 SQ. FT., ON A 50 FT X 140 FT. LOT, LOCATED 1 BLOCK SOUTH OF SPID, IN FLOUR BLUFF. THE HOUSE HAS BEEN HEAVILY DAMAGED BY VANDALS AND NEEDS EXTENSIVE REPAIRS THROUGHOUT. THE PROSPECTIVE PURCHASER IS BRAD PICI OF CORPUS CHRISTI —142— 1495 Lig O, i A n n i • 0 • WC } •te AI 4 i4 LANE ' t a BA07ON JTTIET ti JOVNELL 3742 ET 0131237E STEM !TONE 1&atm. MuS no I it C /MTCL -143- C U N ^r 142 4 4 5 0 1 L r b v 70 t aiDnouD dr MUM SL MANN IT ML !VW • t GQEEN TALMADGE sr. dr TIS • .5E . ..•,. (N) •0 NLD.MINE eT m droNL alr sL i m C C C 3 2 3 ti E earn O 3 c � t N W % . : ;. i • • • --1 -.�It .'Nitta_ \/, +'INN 1 ANDERSON) .n s, o n sTa1Er 0 if 4 tj.r : C E C. / 4 t a BA07ON JTTIET ti JOVNELL 3742 ET 0131237E STEM !TONE 1&atm. MuS no I it C /MTCL -143- C U N ^r 142 4 4 5 0 1 L r b v 70 t aiDnouD dr MUM SL MANN IT ML !VW • t GQEEN TALMADGE sr. dr TIS • .5E . ..•,. (N) •0 NLD.MINE eT m droNL alr sL i m C C C 3 2 3 ti E earn O 3 c � t N W ANALYSIS OF BID RECEIVED FOR TAX RESALE. PROPERTY Suit Number & Style: Tax ID# & Legal: Property Location: Date of Sale: Amount Due All Entities: Amount of Bid: Cost of Sale: Current Value: % of Total Due: % of Current Value: 08- 1371 -B; Nueces County vs. I.E. Hayley, Jr. 3267 -0008 -0060; 0.154 acre tract of land , in Share VIII of the CC Hart Partition, described in Volume 1521, Page, 855, Deed Records of NCT I11-37 South access road @ Hart Rd. - Corpus Christi February 3, 2009 7,079.77 500.00 909.50 3,700.00 7.06% 13.51% Entity Name Amount Due Each Entity Amount You Will Receive Nueces County 1,471.46 - Nueces County Education District 229.14 - City of Corpus Christi 1,570.44 - Calallen Independent School District 3,330.83 - Del Mar College 477.90 - A SMALL, IRREGULARLY SHAPED TRACT OF LAND, ABUTTING THE IH -37 SOUTH ACCESS ROAD AT HART ROAD IN CALALLEN. THE PROSPECTIVE BUYERS OWN AND OCCUPY THE ADJOINING PROPERTY. THE PROSPECTIVE PURCHASER IS RUDY CAVAZOS OF CORPUS CHRISTI 1496 —144— •mil 7 4 Le a LD ,at /9. /0 /3 9 a H .kT IA Dr. r E k P L14 L 3. Y • •Ac 3257,4.120 'P Pt +1 E -t ?62'0 E if /G //v4 V :a lo+ N 2. AC 3257-4:140 Harney Part 3257 -4.80 LOT H NA ET TAF-T17 N ORDINANCE AUTHORIZING THE RESALE OF THIRTY (30) PROPERTIES FOR $102,726.00 WHICH WERE FORECLOSED UPON FOR FAILURE TO PAY AD VALOREM TAXES, OF WHICH THE CITY SHALL RECEIVE $9,166.02 PLUS $40,534.64 FOR PARTIAL PAYMENT OF CITY PAVING AND DEMOLITION LIENS; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That pursuant to Section 34.05 of the Tax Code, the governing body of the City of Corpus Christi authorizes the resale of thirty (30) properties listed on the attached and incorporated Exhibit A for $102,726.00, which were foreclosed upon for failure to pay ad valorem taxes, of which the City shall receive $9,166.02 plus $40,534.64 for partial payment of City paving and demolition liens. SECTION 2. That the Nueces County Judge is authorized to execute a resale deed upon payment to the City of the City's share of the tax resale proceeds. 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 30th day of June, 2009. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Joe Adame City Secretary Mayor APPROVED: June 25, 2009 By: Lisa Aguilar(Assistant City Attorney for City Attorney -146- EXHIBIT A FORECLOSED PROPERTY LIST 1 605 95- 3911 -H 10238 N. Harrington 3415-00014010; Lot 1, Block 1, Highway Village Section 1 $16,000.00 53,302.97 50.00 2 641 92 -8253-0 5849 Hall Avenue 2230-0000 -1140; Lot 114, Ebony Acres 2,000.00 0.00 1,977.00 3 648 97- 1188 -H 2406 Summers 8013-0003-0070; the south 100 feet of Lot 7 & the west 3 feet of the south 100 feet of Lot 6, Block 3 1,600.00 0.00 1,577.00 4 657 97- 2156 -D 1634 Main Drive 3593-0004-0110; Lot 11, Block 4 Hudson Acres 1,000.00 121.67 0.00 5 984 00- 2462 -F 1630 Blanco 4983-0002-0012; the south 62 feet of Lot 1, Block 2, McNorton Addition 1,000.00 0.00 977.00 6 1105 99. 6863 -E 2614 McCain Drive 3416-0008 -0100; Lot 10, Block 8, Highway Village Section II 7,800.00 0.00 7,777.00 7 1180 02- 6057 -C 2501 Jobs net 4375-0002 -0090; Lot 9, Block 2, Lexington Subdivision 2,000.00 0.00 1,977.00 8 1228 93- 5533 -0 10845 Mayfield Drive 79014001 -0100; Lot 10, Block 1, Shady Acres Subdivision 3,275.00 181.72 1,181.41 9 1244 02-3233-C 1617 Tenth Street 2451 - 1003 -0230; Lots 23 and 24, Block 1003, Fitchue Place 1,000.00 0.00 73102 10 1245 02- 3260 -B 914 Azalea Drive 216400070210; Lot 21, Block 7, Driscoll Village 7,000.00 1,041.37 63.76 11 1247 04- 5812 -B 1434 Main Drive 3593-0004 4330; Lot 33, Block 4, Hudson Acres Addition 1,000.00 0.00 950.68 12 1250 04-6531-B 6546 Lyons Street 0063. 0002.0200; Lot 20, Block "B ", Airline Subdivision 7,500.00 410.44 4,96732 1,220.56 13 1261 03- 1217 -C 2934 Blake Street 7193 4002 -0030; Lob 3 and 4, Block "B ", Reynolds Addition 1,500.00 0.00 14 1323 04- 5812 -B 1649 16th Street 2451 - 1403-0070; Lots 7 and 8, Block 1403, Fitchue Place 1,000.00 1100 977.00 15 1343 04-6735-H 8938 McGloin Road 0280-0080 -1000; 1.0 acre in the John H. Gallagher Survey #166, Abstract 1009 1,500.00 0.00 1,477.00 16 1375 04- 7063 -F 1102 Navigation Boulevard 2197-0000 - 0680; 50 feet by 130 fed of land out of the Tom Whelan Tract, described by metes and bounds in County Clerk's File #402065 5,000.00 266.52 2,561.90 17 1377 04- 7165 -A 324 19th Street 9640-0001-0010; Lot 1, Block 1, Wilburn Addition 700.00 0.00 656.69 18 1385 04-6477-B 9026 McNorton Road 4984-0004-0190; Lot 19, Block 4, McNorton Subdivision #2 1,000.00 0.00 467.83 19 1386 034523-C 4716 Sancta Drive 1 690-0009 - 0065; the south one -half of Lot 6, Block 9, Colonic Hidalgo Addition 1,000.00 0.00 977.00 20 1388 04- 5757 -H 1101 Main Drive 3593-0002 -0330; Lot 33, Block 2, Hudson Acres Addition 1,000.00 0.00 977.00 21 1392 03- 2635 -F 2315 Howard Street 4528-0002-0160; Lot 16, Block 2, Lama Alta Subdivision 2,000.00 0.00 633.12 22 1399 04- 7122 -D 122 Blevms Street 8284-0007-0180; Lot 18, Block 7, Southmoreland Addition 5,000.00 227.68 2$3199 23 1413 97- 5707 -G 1512 - 0023 -0130; a tract of land, being 50.64 fed by 130.98 feet, out of Block 23, Chamberlain Addition, described in Volume 50, Page 164, Dad Records of NCT 1,000.00 0.00 0.001 509 King Street 24 1427 92- 3685 -A 4742 Blackjack Place 2996-0001 -0300; Lot 30, Block 1, Greenwood Park Addition, Unit 1 3,600.00 238.22 1,959.64 25 1448 06- 3719 -F 1609 Mary Street 8414. 0005-0020; Lot 2 and the East one-half of Lot 3, Block 5, Steele and Laughlin Addition 7,500.00 1,251.39 0.00 26 1455 06- 3312 -B 1017 Home Road 4100-0006-0055; the west one -half of Lot 5, Block 6, Laguna Acres Addition 5,751.00 382.14 2,175.76 27 1466 06-0896 -B 1830 Shely Street 6745-0008-0040; Lot 4, Block 8, Pineda Park Addition 7,000.00 1,095.20 0.00 28 1467 06- 2726 -E 1716 Van Loan Avenue 3443 - 0015 -0160; Lots 16 and 17, Block 15, Hi lcmd Addition 2,500.00 134.28 870.22 29 1495 06-4653 -E 1229 Preston Street 2481-0006.0210; Lot 21, Block 6, Flora Bluff Center 4,000.00 512.42 567.74 30 1496 08- 1371 -B III-37 South access road @ Hart 3267-0008-0060; 0.154 acre tract of land, in Share V1II of the CC Hart Partition, described in Volume 1521, Page 855, Deed Records of NCT 500.00 0_00 PM Road Total 5102,726.00 $9,166.02 $40 .64 Corpus Christi, Texas Day of , 2009 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, Joe Adame Mayor Council Members The above ordinance was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry R. Elizondo, Sr. Kevin Kieschnick Priscilla Leal John E. Marez Nelda Martinez Mark Scott —148— 9 AGENDA MEMORANDUM City Council Action Date: June 30. 2009 SUBJECT: La Retama Central Library Renovations, (Project No. 4392). AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute a Job Order Contract with Nuway International, Inc. of Corpus Christi, Texas, in the amount of $77,234.33 for La Retama Central Library Exterior Building renovations. ISSUE: La Ratema Library was constructed in 1980's and is in need of renovations. These renovations will provide badly needed exterior aesthetic upgrades and better weather proofing for the building. The work also includes some minor entryway improvements for safety and aesthetics. This project is proposed under the Job Order Contract and is now ready to begin construction; and requires City Council approval. FUNDING: Funds for this project are available from Maintenance Service Fund. RECOMMENDATION: Staff recommends approval of the motion as presented. .41.6,s �"...,- Herb Canales Director of Library 826 -7070 herbc@cctexas.com Pete Anaya; P.E. Director of Engineering Services 826 -3781 petean6 cctexas.com Davis et Management Superintendent Maintenance Services 857 -1909 JimD@cctexas.com Additional SUDDOrt Material: Exhibit "A" Background Information Exhibit "B" Location Map -151- BACKGROUND INFORMATION SUBJECT: La Retama Central Library Renovations (Project No. 4392) PROJECT DESCRIPTION: The project for the La Retama Central Library consists of exterior renovation to the library located at 805 Comanche. The following provides a more detail description of the work: • Exterior surface cleaning and preparation with pressure wash of approximately 25,000 square feet of the building; • Exterior masonry restoration including removal of irregularities by scraping and sanding with new stucco finish coat; • Exterior painting two coat system for stucco; • Miscellaneous painting and preparation for door and window trim, and hand rails. • Entryway minor improvements including lighting repairs and tile work.; and • 24 sq. ft. of sidewalk repair work leading to La Retama. CONSTRUCTION SCHEDULE: The project will be completed as follows: 60 days from notice to proceed. BACKGROUND: The voters of Corpus Christi approved a $5 million bond issue for a new central library in 1982. The project was completed in June, 1986. In 2005 an expanded children's library was opened; $325,000 was raised in private funds for this project. There have been no other major improvements since 1986, with the exception of replacement and upgrades to mechanical systems. The Central Library has never undergone a complete repainting or repair to chipped stucco since it opened twenty -three years ago. Small sections have been painted to cover graffiti. Besides painting and stucco repair the proposed project includes repair to a few exterior tiles which are either missing or loose /cracked and which represent a safety hazard. Additionally, exterior light fixture covers along the front corridor are proposed to be replaced; several have broken off over the years. More than 90% of the project cost is painting and stucco repairs. The library is celebrating its centennial this year. La Retama Club founded the library in 1909. In honor of La Retama's contribution to the library, the City Council renamed the Central Library the "La Retama Central Library" last year. 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. —152— EXHIBIT "A" Page 1 of 2 Job Order Contracting streamlines the construction procurement process by establishing an overriding indefinite delivery and indefinite quantity agreement with purchase or delivery orders based on specific projects as needed. This process is extremely flexible, allowing scope and cost to be accurately detailed BEFORE award. The following are important benefits of using this contract method: > Allows a better defined scope with cost for the customer. > Construction contract award can be accomplished in less than one month, significantly shortening the procurement time. • Each delivery order is a stand -alone contract. Future awards will be based specifically on the contractors performance and the needs of the City of Corpus Christi. > Change Orders are minimized. The approved contractor will specifically conduct detailed site visits and discussions with City Staff to review the requirements, work conditions, and facility condition prior to submitting a proposal. This will significantly reduce and /or eliminate unforeseen conditions and excessive cost growth. —153— Mproject councilexhibits exh4392.dwg CITY HALL coaDvaLsT cooreas wPY PROJECT B 4392 WW1 VICINITY MAP NOT TD SCALE LA RETAMA CENTRAL LIBRARY REHABILITATION - 805 COMXCHE EXHIBIT WI CITY COUNCIL EXHIBIT CRY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 10 CITY COUNCIL AGENDA MEMORANDUM AGENDA ITEM: PUBLIC HEARING — ZONING (City Council Action Date: June 23, 2009) ITEM: Case No. 0509 -03, Roland & Robert Beck, DBA South Texas R & R Rentals. - A change in zoning from the "F -R" (Farm - Rural) District and "B -4" (General Business) District to "1 -2" (Light - Industrial) District resulting in a change of land use from vacant use to light industrial use on the property described as Hudson Acres Annex Lot 10, Block 1, generally located on the southside of Leopard Street, approximately 500 feet east of Main Drive and 1000 feet west of Rhew Road. PLANNING COMMISSION'S AND STAFF'S RECOMMENDATION (May 13, 2009): Approval of the Applicant's request for a change in zoning from the "F -R" Farm -Rural District and "B -4" General Business District to an "1 -2" Light Industrial District for the outdoor storage of equipment and the construction of metal buildings. REQUESTED COUNCIL ACTION: : Approval of the Planning Commission and Staff's recommendation. STAFF'S SUMMARY: Request: The applicant is requesting a change in zoning from the "F -R" Farm -Rural district and "B -4" General Business District to an "1 -2" Light Industrial District for the outdoor storage of equipment and the construction of metal buildings for industrial uses. Existing Land Use: The subject property is vacant. To the north is light industrial developed property and vacant land. To the east and south is vacant land. Directly adjacent to the west is the Hudson Acres single family subdivision. Existing Zoning: The purpose of the "F -R" Farm -Rural District is to allow areas inside the city to be used for agricultural purposes and to assist in the control of scattered commercial and industrial uses of the land until infrastructure are available to the area. The "F -R" District does not require any setbacks or limits on height of structures, but does require all single family uses to be located on lots with a minimum of five acres in size. The purpose of the "B-4" General Business District is to provide sufficient space in appropriate locations for commercial and miscellaneous service activities. Residential density is a maximum of 36 units per acre. Warehousing, manufacturing, heavy auto repair, open storage and off -site advertising uses are among the uses which are not allowed in the "B -4" District. The "B-4" District requires a 20 -foot front yard setback and no side or rear yard setbacks unless adjacent to a residential district, then a 10 -foot setback is required. Proposed Zoning: The applicant is requesting a change in zoning to the "1 -2" Light Industrial District which provides for light manufacturing, fabrication, warehousing, and wholesale distributing in high or low buildings with access to an arterial street, freeway, or railroad in central or outlying areas of the city. Residential uses are not allowed. In Article 24 of the Zoning Ordinance, the "1 -2" District requires a minimum 20 -foot front yard setback and no side or rear yards unless abutting a residential district; then 10 -foot -157- side and rear set back is required. The "1 -2" District does not have a minimum lot size, lot frontage, height limitation, open space requirement or floor area intensity factor requirement. Transportation & Circulation: The subject property has access to Leopard Street. Currently, Leopard Street is an 43, four -lane, divided and paved arterial road with 160 foot right -of -way. Comprehensive Plan Consistency: The adopted Future Land Use Plan designates the subject property for Light Industrial use; therefore, the proposed "1 -2" Light Industrial Zoning District is consistent with the City's Comprehensive Plan Plat Status: Property is platted. Department Comments: • The Applicant's request to rezone the subject property from the "F -R" District and "B-4" District uses to the "1 -2" Light industrial use is consistent with the City's Future Land Use Map and the intent and policies of the Area Development Plan in place. • The Applicant will be required to adhere to the requirements of the City's Building Code and Zoning Ordinance, including fencing and any landscaping required for the project. Notification: Of the fifty three (53) notices mailed to the surrounding property owners, one (1) notice was retumed in favor and three (3)(.86 %) were returned in opposition. The 20% rule Is not invoked. This case is considered noncontroversial. State law 20% rule is invoked when property owners who own 20% of the land within the 200 foot radius of the subject property are opposed. Invoking the 20% rule requires a three- quarters favorable vote of the City Council for a change of zoning to be approved, rather than a simple majority. Unless such proposed change is approved by the Planning Commission such change shalt not become effective except by a favorable vote of a majority plus one of the City Council present and voting. FGM Attachments: I. Zoning Report 2. Planning Commission Minutes (May 13, 2009) 3. Ordinance and Site Plan —158— \kat Juan Perales P.E., Interim Assistant City Manager of Development Services Office # 361.826.3570 JohnnyP @cctexas.com Faryce Goode -Macon Office# 361.826.3260 FaryceG @cctexas.com Senior Planner CITY COUNCIL ZONING REPORT Case No.: 0509 -03 Planning Commission Hearing Date: May 13, 2009 Applicant: Roland & Robert Beck, DBA South Texas R &R Rentals Owner: Roland & Robert Beck Agent: Roland Beck Legal Description/Location: Hudson Acres Annex Lot 10, Block 1, generally located on the southside of Leopard Street, approximately 500 feet east of Main Drive, and 1000 feet west of Rhew Road. Zoning Request From: "F -R" (Farm - Rural) District and `B -4" (General Business) District To: "I -2" (Light - Industrial) District Area: 17.81 acres Purpose of Request: A change in zoning from the "F -R" (Farm - Rural) District and "B -4" (General Business) District to "I -2" (Light - Industrial) District for outdoor storage use and the construction of future metal buildings for industrial uses. Pt a d •k It o N e to W `41 V, C. ro ea 2 — a 0. Area Development Plan: This lot is located in the Port/Airport/Violet ADP and is planned for light industrial uses. The proposed change in zoning to an "I -2" Light Industrial Use is consistent with the adopted Land Use Plan which designates the area for light industrial uses. Map No.: 056046 Zoning Violations: None —159— Zoning Existing Land Use Future Land Use Site "F- R/B -4" District Vacant Light - Industrial North "I- 2/8-4" District Light - Industrial Light- Industrial South "F -R" District Vacant Li t- Industrial East "F- R/I -2" District Vacant ,ht- Industrial West "R -1B" District Low - Density Residential Low - Density Residential `41 V, C. ro ea 2 — a 0. Area Development Plan: This lot is located in the Port/Airport/Violet ADP and is planned for light industrial uses. The proposed change in zoning to an "I -2" Light Industrial Use is consistent with the adopted Land Use Plan which designates the area for light industrial uses. Map No.: 056046 Zoning Violations: None —159— STAFF SUMMARY Request: The applicant is requesting a change in zoning from the "F -R" Farm -Rural district and "B -4" General Business District to an "1 -2" Light Industrial District for the outdoor storage of equipment and the construction of metal buildings. Existing Land Use: The subject property is vacant. To the north is light industrial developed property and vacant land. To the east and south is vacant land. Directly adjacent to the west is the Hudson Acres single family subdivision. Existing Zoning: The purpose of the "F -R" Farm -Rural District is to allow areas inside the city to be used for agricultural purposes and to assist in the control of scattered commercial and industrial uses of the land until infrastructure are available to the area. The "F -R" District does not require any setbacks or limits on height of structures, but does require all single family uses to be located on lots with a minimum of five acres in size. The purpose of the `B -4" General Business District is to provide sufficient space in appropriate locations for commercial and miscellaneous service activities. Residential density is a maximum of 36 units per acre. Warehousing, manufacturing, heavy auto repair, open storage and off -site advertising uses are among the uses which are not allowed in the `B -4" District. The `B -4" District requires a 20 -foot front yard setback and no side or rear yard setbacks unless adjacent to a residential district, then a 10 -foot setback is required. Proposed Zoning: The applicant is requesting a change in zoning to the "1 -2" Light Industrial District which provides for light manufacturing, fabrication, warehousing, and wholesale distributing in high or low buildings with access to an arterial street, freeway, or railroad in central or outlying areas of the city. Residential uses are not allowed. In Article 24 of the Zoning Ordinance, the "I -2" District requires a minimum 20 -foot front yard setback and no side or rear yards unless abutting a residential district; then 10 -foot side and rear set back is required. The "I -2" District does not have a minimum lot size, lot frontage, height limitation, open space requirement or floor area intensity factor requirement. Transportation & Circulation: The subject property has access to Leopard Street. Currently, Leopard Street is an A -3, four -lane, divided and paved arterial road with 160 foot right -of -way. I )4 C rnc4 Street Type Existing ROW and Paved Section Volume (2001) 7968 trips Leopard Street A -3 primary arterial- divided 160'/28' paved each side —160— Infrastructure Demand: + Water: An 8" water line runs parallel with Leopard Street and Main Drive. ❖ Wastewater: A 10" wastewater line exists down the center of Main Drive. ❖ Stormwater: A 10" stormwater line exists down the center of Leopard Street and Main Drive + Gas: A gas main line exists along Leopard Street and Main Drive providing gas service. Public Safety: + Police: The subject site is located within the A10 Directed Patrol District. This district experienced 637 crimes in 1993, which decreased to 380 crimes in 2005. + Fire & Rescue: Fire Station #12 on Rande Morgan Road is the closest fire and rescue center to the subject property at just over 2 miles away. FEMA Flood Information: Flood Zone C - Areas outside the 1- percent annual chance floodplain, areas of 1% annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1% annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1% annual chance flood by levees. Relationship to Smart Growth (See Attachment 10, Principles of Smart Growth): Staff has rated the relationship of the rezoning request to Smart Growth Principles by rating the rezoning a 10 on a scale of 100 points. Smart Growth Principles which relate to the requested rezoning include: o Strengthen and direct development toward existing communities (10 points). COMPREHENSIVE PLAN CONSISTENCY: The adopted Future Land Use Plan designates the subject property for Light Industrial use; therefore, the proposed "I -2" Light Industrial Zoning District is consistent with the City's Comprehensive Plan. In addition, policies from the Corpus Christi Policy Statements and the Area Development Plans are provided below. POLICIES -INDUSTRIAL A large amount of vacant land is currently zoned for industrial use in the city, with a significant amount located along I.H. 37 between Violet Road and Padre Island Drive. These areas are important, as they help provide sufficient industrially zoned land for existing and future industries. A primary land use concern is the location of industrial sites and the impact they have on abutting non - industrial uses. If industrial uses are introduced into non - industrial areas of the city, they must be designed with sufficient open space and other buffers to protect the safety, aesthetic, and monetary value of adjacent properties. —161— b. AN ACTIVE PROGRAM SHOULD BE DEVELOPED TO RETAIN AND EXPAND EXISTING INDUSTRY. One of the principal components of industrial growth comes from the expansion of existing industry rather than from the development of new industry. Programs that will promote competitively -priced industrially -zoned land for expansion should be supported. Staff Comment: The rezoning request takes advantage of the expansion of the industrial use transition occurring within this area. The subject property and properties to the north, east, and south of the subject property are designated for light industrial use under the adopted Future Land Use Map, and the neighborhood to the west is a residential neighborhood in transition to industrial use (See Policies B.9 and B.10 below of the ADP): c. PROPERLY PLANNED INDUSTRIAL PARKS SHOULD BE ENCOURAGED. A primary objective is to attract new industry for Corpus Christi. Business should be encouraged to develop in industrial parks that are properly planned and landscaped. Large industrial parks are to be encouraged as they usually offer more utilities and amenities to mitigate the effect of industrial development than do smaller, individual - lot developments. INCOMPATIBLE INDUSTRIAL AND COMMERCIAL LAND USES SHOULD NOT ABUT RESIDENTIAL AREAS. Many of the activities allowed in the industrial and commercial districts are incompatible with residential areas. Whenever possible, such uses should be separated from residential areas. When these uses must abut residential areas, steps shall be taken to minimize conflicts, i.e., provision of open space, landscaping, screening fences, etc. Staff Comment: Generally, issues of noise, odor, bright lights, and hours of operation can individually or in combination negatively impact a residential neighborhood. The "R -1B" neighborhood District located to the west and adjacent to the subject property is in transition from residential to industrial use. The proposed industrial use is required to place a 6 foot solid fence along the subject property. The fence will reduce negative impacts of the development. PORT /AIRPORT/VIOLET AREA DEVELOPMENT PLAN CONSISTENCY: POLICY STATEMENT B.10. The residential neighborhood on Main Drive and north of McNorton Road extended are neighborhoods in "transition" from residential land use to industrial land use. (see policy statement B9 and the Future Land Use Plan map) Staff Comment: The Applicant's request for rezoning of the property meets the intent of the City's Future Land Use Map and the intent of the Area Development Plan. The subject property is located adjacent to the one of the neighborhoods that is in transition from residential use to industrial use as stated in Policy Statements B -9 and B -10. —162— Plat Status: Property is platted. Department Comments: • The Applicant's request to rezone the subject property from the "F -R" District and "B -4" District uses to the "I -2" Light industrial use is consistent with the City's Future Land Use Map and the intent and policies of the Area Development Plan in place. • The Applicant will be required to adhere to the requirements of the City's Building Code and Zoning Ordinance, including fencing and any landscaping required for the project. Planning Commission and Staff's Recommendation: Approval of the applicant's request for a change in zoning from the "F -R" Farm -Rural District and `B -4" General Business District to an "I -2" Light Industrial District for the outdoor storage of equipment and the construction of metal buildings for industrial uses. Number of Notices Mailed Total — 53 within 200 foot notification area; 0 outside notification area Favor — 1 (inside notification area); 0 (outside notification area) Opposition — 3 (1.69 %) (inside notification area); 0 (outside notification area) (As of May 26, 2009) Attachments: 1. Neighborhood 2007 Aerial 2. Neighborhood — Existing Land Use 3. Neighborhood — Future Land Use 4. Site — 2007 Aerial 5. Subject Property 6. Site — Existing Zoning, Notice area, Ownership 7. Comments received from Public Notices mailed 8. Notice Mailing List 9. District Uses 10. Smart Growth Principles —163— U 4U94Oil • CASE # 0509 -03 1. NEIGHBORHOOD - 2007 AERIAL flSubject Property Refer to Mav 2; " 2b for Neighborhood eystiog t_ci••: ":see. Also available Map Scale: 1:31,660 1 SUBJECT PROPERTY L 0 400 I I ... ••• Li 800 Feet 0 oH. AP icy , <t).- [1'1 1 a 1 1 - t 4, te o t 1 I till 'ta's 1 1 i t u), [sUBJECT PROPER CC CI c) 3. *27)2009 Prepared Ely. SRP Dep... rent at Development erwces CASE # 0509-03 2.a. NEIGHBORHOOD - EXISTING LAND USE,) C &gate Residential - ER [ - Low Density Res. - LDR d Dc usity Res, - MDR I .PPLI ■A Density Res. - HOP , Ile Home - MH Prof .bnal Office - PO aninercial - COM F LI W, I I CP Map Scale: 1:10,000 Light Industrial - LI Heavy Industrial - Hi Public Semi-Public - PSP Park Drainage Corridor - DC Conservation/Preservation - CP Water cc fic1;■ • 'S7' LOCATION MARL SUBJECT PROPERTY tag ttt ?ti = 1 City of • krSHIMS ES,,!? Ch [S S I. I Iffi L L7,1 I RD .op 800 Feet 6-% s Lai f'27'2099 C CASE # Lb. SITE- EXIS &gate Residential - ER [ - Low Density Res. - LDR d Dc usity Res, - MDR I ,P1-1 Density Res. - HOP , Ile Home - MH urob .bnal Office - PO aninercial - COM 0509-03 TING LAND USE f L H I p , I • CP Map Scale: 12.400 Light Industrial - LI Heavy Industrial - Hi Public Semi-Public - PSP Pr:* Drainage Corridor - DC Conservation/Preservation - CP Water \ SUBJECT PROPERTY 'LOCATION 114API - city of Christi LEO 1,.I C Fi Ppgs Ll L LI C PSc �1I - 111rrr' LDRI HI L Li LI LI { { LDP LDP P: LDf* SUBJECT. PROPERTY LI H CASE # 0 a. NEIGHBORHOOD - AgricutturatlRural - AR Estate Residential - ER - Low Density Res. - LDR - - rsity Res. -MDR a,J �^gh Density Res. - NOR ileHome - MH .,cant - VAC -5, Frotes .ional Office - PO -- i Conine ercial- COM Transportation Plan .'ileria!s Collector --- -. Ex pi ass ✓ays urur. Parkway - t;. +} Railroad f LI J r- DP f cp 509 -03 FUTURE LAND USE Tourist - TOR Ra,aarch /Business Park - RBP Light Industrial - LI Heavl Industrial - HI Pub!- Semi - Public - PSP Park Drainage Corridor - DC Dredge Placement- DP Water Conservation/Preservation - CP Map Scale: 1:10000 'LOCATION MARL 1 1. SUBJECT ,.,• PROPERTY _ �f 1_ i ityof comm C :hr sll ccra LI S re( V✓E L! LJV 40v Har! _L LPR- ER LOR —L-DR MIN SDSJECT PROPERTY /,I LOR Ll CL LIB I LI LI LI CASE # 0509 -03 3.b. SITE- FUTURE LAND USE Agricultural /Rural - AR Tourist - TOR I Estate Residential - ER 1 =e.•] R- It#arch /Business Park - RBP - - Low Density Res. - LOP f LI ] Light Industrial - LI - !sity Res. - MDR Heavl Industrial - HI —7h Density Res. - HOP mr1 Pub!„ Semi - Public - PSP Ile Home - MH Park - 1 cant - VAC _ Drainage Corridor - DC ' 'on Tonal Office - PO "P Dredge Placement - DP _un.,..✓cial -COM l ] Water ca conservation/Preservation - CP Transportation Plan .! lerb!s Collector - - --. Expresslvays LrIr Parkway } Railroad Map Scale: E2.400 1 1 SUBJECT PROPERTY 94 City of _ corpus Is 'LOCATION MAPI Christi Tf JL vL' ELL 'fib lkLL✓t` -1: T1 E L— Lf' :T'J' 'J S ^•i 1RCLt -+... SU UNT! UEyit T1. Tf'4•CT DE if :D ::!STRIA!. PA R,4 L.ADD �bn T tr R; ASSESSORS MAP 120 eU'6:_b- NJ -.IIiTRIA' TRA'OTS UN A s., t.S S 0 R S M A P ! J G L H•r_ CASE # 0509 -03 4. SITE- 2007 AERIAL Refer td Mao ?'or Neighborhood E- ::r!o, La.si Use 41-so available di ,.. !.l..c; te•:as.com 1 SUBJECT PROPERTY A - • '1 City Of ' I t.fir' ?I Ia 'LOCATION MA '1 Christi UIA 'O C1RCt TRACT? EL. E4p4t T HEX ASSESSORS MAP 140 SSESSORS MAP 141 RHEW INDUST AL TR6tCTS U 40 41 42 43 z'. SSORS MAP 440.. 25 4127''2000 FrepatedSy SRR development Se vices CASE # 0509 -03 5. SUBJECT PROPERTY Subject Properly SUBJECT PROPERTY LOCATION MAP A 2A ILLWEL 28 4', /$TQC- CS-ETH T 2 I. SIEA Rb 3 BEARQ4N 'ND rut MA.. P' 141r Ut OSO C ASS SSORS MA 1A'CT CT 4 -A TRI CT 3 -2 TR,' fTFA ASSESSORS MA P 140 RHEW IN TRI fl TRA T ORS MA 14 P 0 40p 800 Feet CASE # 6. SITE - EXIS NOTICE AREA A9 twartment House [lu rist °rib Bailment Pause District P-2 Raiment house DUribt HE Professional ©flle District AT Anal In nt Tourist District B -1 Malibu hoozi Eusine s D>rold E14 Fling b h rI Dusines:. Dltilf/S E-2 4tytr rt Business District. BRA Bainer Island Business District B -3 Business District.. B-h c(eneralBusio35S District 8s Primer+, BUSiitess Dlstrir Chi Primer,susiness Cole District ED Cori US Chrisll Roach Design DISC F:R Fenn Rib al Had& HC Haire cal- Cultural Landmark Preservation 101 Hp 00' UNIT 1 TelB 4/2];2009 pa,Ed- ey --SRR- pmerttServices 0509 -03 TING ZONING, & OWNERSHIP 1 -1 Limited Industrial Dstnct 1-2 cart Industrial District 1-3 Heavy IndustrialDshltt POD Panned Unit Development P -A Ore Fanly Dwilr9 Dl9trct P-B One Family Snelling Disacct P -ir or- Fasiy Dahltg Dsritct R-2 Multiple Doe ling District Pa One Family Pry lli aDis strict RE Residential Dstele Dintrit4 13- H i nnouse DnePOg District SP Spatial Parma lr'La fiscal Trailer Pals Dennyc TMa MAnufaetured Heine Park DLtdet .a denuraalured Home 9 brrtv elan DlSIi aI- 9]g1Y a ruva A Come 200 's:ea or V Otvr e• adaCiled eau s..ry iabre is opuesGad RCLE NEX ASSESSORS MAP 14. SSESSORS MAP 141.. 5 RHEW INDUST 7 AL TRtCTS U IT 20 15 412h'2OP4 erepa,r Sy SRR Develop Se vices CASE # 05 09 -0 Planning Commission and Staff Recommendation Approval of the Applicant's request for an "1 -2" District SUEJECT PROPERTY. Ordinance No.: OCATION MAP City of Corpus Christi rr ;O CIRCLE BEARTHEN IND. ii NEX ASSESSORS MAP 140> SSESSORS MAP 14.,1.. RHEW 1NDUST 4 s 7 I2 AL TRtCTS U IT 10 11 12 13 14 15 4/27''2009 erepa,it?y SRR devefopoient Se vices CASE # 05 09 -03 Applicant's Request From: "F -R" and 'B -4" To: "1 -2" SUBJECT PROPERTY Ordinance No.: OCATION MAP City of Corpus Christi f COMMENTS RECEIVED FROM PUBLIC NOTICES MAILED Case No: 0509 -03 Name: Roland & Robert Beck DBA R &R Rentals Circled = FAVOR X = OPPOSED (Note: The number(s) next to name corresponds to the attached map.) Total number mailed: Returned undeliverable: 53 0 I. Notices returned from within the 200 -foot notification area: Favor: 0 Opposition: 1 (.83%) #46 Gonzalo & Irma Fuentes, 1404 Main Drive: "Because this is a residential area not a business place" H. Responses received from outside the 200 -foot notification area: Favor: 0 Opposition: 0 III. Responses received from owners /applicants of subject area: Favor: 0 Opposition: 0 IV. Unsolicited responses received concerning subject area: Favor: 0 Opposition: 0 H:\PLN- DIR'SHARED \l. Planning Commission\2009 PC12004 Public Comments \0509- 03.doc NUECES CO. OWNERSHIP LIST CASE NO. 0509 -03 A-rm-ci-Frin tor 2 Iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 282218888888 =88 =2R88888R882222288887p88 ,720288287282888 WAdadoeooeeeeededeeodoeoe0000tleeeedddrdee .oeeeooene�ne8 x ✓ 229!8882 2RFnligt: R : :Cwe:01: RBRq =nR 80R8R2r12288S'.R illoi g8'i mfe 888888888888888881tt8gi188888 R1�j1121 B ���I� R�'e SeeeoeeeeboSooSe5171b 5581 eases SSiS �j i& R i Y 5O Q j eii ,✓Bp O im ammo YYY !. 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"F -R" FARM -RURAL DISTRICT REGULATIONS Section 4A -1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in this article, are the regulations in the "F -R" Farm -Rural District. The purpose of this district is: A. To permit the continued use of the land for agricultural property; B. To assist in the control of scattered commercial and industrial uses of the land. Section 44-2 Use Regulations. A building or premises shall be used only for the following purposes: ( 1) Single - family dwellings, other than manufactured homes, for residences of owners and tenants, other members of their families, and their employees. (Ordinance 22851, 02/18/97) ( 2) Temporary farm labor camps other than manufactured homes, incident and necessary to the gathering of the crops growing on the premises. (Ordinance 22851, 02/18/97) (3) Field and truck crops. ( 4) Orchards and vineyards. ( 5) Greenhouses and nurseries. ( 6) Brush land and pasture land. ( 7) Livestock ranches, except swine, and guest ranches. ( 8) Sale and storage of hay and straw. ( 9) Oil and gas wells and appurtenances. (10) Schools, colleges, churches, public parks, golf courses, and other similar public and semi - public uses. (11) Home occupations. (12) Railroad right -of -ways, including a strip of land with tracks and auxiliary facilities for track operations, but not including passenger stations, freight terminals, switching and classification yards, repair shops, roundhouses, power houses, interlocking towers, and fueling, sanding and watering stations. (13) Telecommunications facility, subject to the limitations in Article 27C. (Ordinance 23612, 04/13/99) (14) Accessory buildings and uses including but not limited to: (a) Temporary sales stands for the sale of farm or ranch products produced on the premises, provided only one such stand may be used on each farm or ranch, and shall be located not closer than 30 feet from an adjoining property line, and not less than 40 feet from the roadway. (b) One temporary non - illuminated sign not to exceed forty (40) square feet in area and not to exceed thirty-five (35) feet in height nor overhang or project into the public right -of -way and pertain only to the products sold at the temporary sales stand or pertaining to such other permitted uses in this district. 02/08 F -R -183- - 20 - (c) Temporary non - illuminated signs pertaining to the lease, hire, or sale of a building or premises on which such sign is located, may not exceed the following parameters: (Ordinance 25687, 03/30/04) (1) For properties developed with single - family uses, the sign may not exceed six (6) square feet, including rider signs, and in addition allow the use of one letter -sized flyer box per premise. Only on sign per street frontage is allowed. (2) For undeveloped properties containing not less than three (3) acres and not more than five (5) acres, the sign may not exceed a height of eight (8) feet and a sign area of sixteen (16) square feet. Only one sign per street frontage is allowed. The use of one letter -sized flyer box per premise is permitted. (3) For undeveloped properties exceeding five (5) acres, the sign may not exceed a height of eight (8) feet and a sign area of 32 square feet. Only one sign per street frontage is allowed. The use of one letter -sized flyer box per premise is permitted. For the purposes of this section, street frontage includes frontage along a canal or a golf course. (15) If approved as a Specific Use Permit (SUP) under Article 25A, a bed and breakfast home (B &B) or bed and breakfast home with special events (B &B /SE). (Ordinance 24580, 09/11/01) Section 4A -3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22 of this Ordinance. For temporary sales stands permitted in this district, there shall be a minimum of five (5) off -street parking spaces provided and so arranged that ingress and egress to such spaces are from driveways approved by the Traffic Engineer of the City of Corpus Christi. Section 4A-4 Off- street Loading Regulations. The off -street loading regulations for permitted uses are contained in Article 23. For any use not contained in Article 23, no off - street loading regulations apply except that loading and unloading shall take place off any public right -of -way. Section 4A -5 Area Regulations. The lots in this area shall have an area of five (5) acres or more. Section 4A-6 Supplementary height and area regulations are contained in Article 27. 02/08 -184- F -R - 85 - ARTICLE 16. "B-4" GENERAL BUSINESS DISTRICT REGULATIONS Section 16-1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in this article, are the regulations in the "B-4" General Business District. The purpose of this district is to provide sufficient space in appropriate locations for all types of commercial and miscellaneous service activities, particularly along certain existing major streets where a general mixture of commercial and service activity now exists, but which uses are not characterized by extensive warehousing, frequent heavy trucking activity, open storage of material, or the nuisance factors of dust, odor, and noise associated with manufacturing. Section 16-2 Use Regulations. A building or premises shall be used only for the following purposes: ( 1) Any use permitted in the "B-1" Neighborhood Business District. (2) Amusement place in an enclosed building, auditorium, or theater except open air drive -in theaters. ( 3) Athletic field or baseball field. ( 4) Boat, automobile, motorcycle, recreation vehicle, and HUD -code manufactured home sales and storage. (Ordinance 22851, 02/18/97) ( 5) Sales and repair of plumbing, heating, electrical, and air conditioning equipment, and auto parts and tire sales and service within an enclosed building. Wholesale house of not more than 6,000 square feet in floor area. ( 6) Bowling alleys and billiard parlors. ( 7) Food storage lockers. ( 8) Animal hospital with no outside runs. (Ordinance 24566, 08/28/01) ( 9) Hotels, motels, or motor hotels. (10) On- premise freestanding and wall signs are allowed and further regulated under ARTICLE 33. SUPPLEMENTAL SIGN REGULATIONS, PERMITS, PLATS AND FILING FEES. No portable sign is permitted. (Ordinance 026735, 4/17/06) (11) Printing, publishing, and engraving. (12) Milk distributing stations, provided there is no bottling on the premises. (13) Radio or television broadcasting stations, studios, and offices, but not sending or receiving towers. (14) Skating rink in an enclosed building. (15) Swimming pool or natatorium. (16) Accessory buildings and uses, except that outside storage is not permitted. (17) Public or governmental buildings. (18) Mini - storage enclosed. (Ordinance 24566, 08/28/01) 02/08 B-4 -185- - 86 - (19) Promotional events, subject to the special conditions set forth in Article 27A, Section 27A -2 of this Ordinance. (20) Service station. (21) Taverns, lounges, or bars. (22) Automobile service, painting and body work are permitted as an accessory use within an enclosed building when associated with auto sales establishment. (23) Car washes. (24) Camper shell sales and installation. (25) Commercial parking garage. (26) Automotive repair, major and minor, provided all work is performed inside of a building. (27) Farmers market retail sales area as accessory use to shopping center. (Ordinance 23932, 02/08/00) Section 16-3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22. Section 16-4 Off- street Loading Regulations. The off -street loading regulations for permitted uses are contained in Article 23. Section 16-5 Height and Area Regulations. Height and area requirements shall be as set forth in the chart of Article 24, and in addition the following regulations shall apply: 16 -5.01 There shall be a side yard not less than ten (10) feet in width on the side of a lot adjoining an "R -1A ", "R -IB ", "R -IC" "R -2 ", "A -1 ", "A -IA ", or "A -2" residential district. 16 -5.02 There shall be a rear yard not less than ten (10) feet in depth on the rear of a lot adjoining an "R -1A ", "R -IB ", "R -1C" "R -2 ", "A -1 ", "A -1A ", or "A -2" residential district. 16-5.03 Any boats, automobiles, recreational vehicles, or manufactured homes stored or displayed for sale shall not be permitted in the yard areas required by Article 24. (Ordinance 22851, 02/18/97) Section 16 -6 Supplementary height, area, and bulk regulations are contained in Article 27. 02/08 B-4 -186- - 95- ARTICLE 20. "I -2" LIGHT INDUSTRIAL DISTRICT REGULATIONS Section 20-1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in this article are the regulations in the "1 -2" Light Industrial District. This district is intended primarily for light manufacturing, fabricating, warehousing and wholesale distributing in high or low buildings with off - street loading and off -street parking for employees and with access by major streets or railroad in either central or outlying locations. Section 20-2 Use Regulations. A building or premises shall be used only for the following purposes: (1) Any use permitted in the "B -5" Primary Business District except for signs as enumerated in Item (2) below and except for dwellings, hospitals, institutions, or other buildings used for permanent or temporary housing of persons except as described in Item (3) below. (2) On- premise freestanding and wall signs are allowed and regulated under ARTICLE 33. SUPPLEMENTAL SIGN REGULATIONS, PERMITS, PLATS AND FILING FEES. Portable signs are not allowed. Signs in this district are further regulated by Ordinance No. 21973, Highway Beautification Ordinance, implementing the Texas Highway Beautification Act, Texas Transportation Code, Chapters 391, 392 and 393 which ordinance by this reference is hereby adopted as the supplementary outdoor sign regulations for this zoning district and by this reference is incorporated herein as though set forth in its entirety. (Ordinance 026735, 04/17/06) (3) Dwellings or HUD -code manufactured homes for resident watchmen and caretakers employed on the premises. (Ordinance 22851, 02/18/97) (4) The following uses, and any similar uses which are not likely to create any more offensive noise, vibration, dust, heat, smoke, odor, glare, or other objectionable influences than the minimum amount normally resulting from other uses permitted, such permitted uses being generally wholesale and retail trade, service industries, and light industries that manufacture, process, store, and distribute goods and materials and are generally dependent on raw materials refined elsewhere and manufacture, compounding, processing, packaging, or treatment, as specified of the following products or similar products. Chemicals. Petroleum. Coal. and Allied Products Cosmetics and toiletries Ice manufacture, including dry ice Ink manufacturing (mixing only) Insecticides, fungicides, disinfectants, and related industrial and household chemical compounds (blending only) Laboratories Perfumes and perfumed soap (compounding only) Pharmaceutical products Soap, washing or cleaning, powder or soda (compounding only) Clay. Stone. and Glass Products Clay, stone, and glass products Concrete products (except central mixing and proportioning plant) Pottery and porcelain products (electric or gas fired) Food and Beverage 02/08 1 -2 -187- - 96- Bakery products, wholesale (manufacturing permitted) Beverage, blending, bottling (all types) Candy, wholesale (manufacturing permitted) Chewing gum Chocolate, cocoa, and cocoa products Coffee, tea and spices, processing and packaging Condensed and evaporated milk processing and canning Creamery and dairy operations Dairy products Fish, shrimp, oysters, and other sea food processing, packing and storing except fish curing Flour, feed and grain (packaging, blending, and storage only) Fruit and vegetable processing (including canning, preserving, drying, and freezing) Gelatin products Glucose and dextrine Grain blending and packaging, but not milling Ice cream, wholesale (manufacturing permitted) Macaroni and noodle manufacture Malt products manufacture (except breweries) Meat products, packing and processing (no slaughtering) Oleomargarine (compounding and packaging only) Poultry packing and slaughtering (wholesale) Yeast Metals and Metal Products Agricultural or farm implements Aircraft and aircraft parts Aluminum extrusion, rolling, fabrication, and forming Automobile, truck trailer, motorcycle, and bicycle assembly Boat manufacture (vessels less than five tons) Bolts, nuts, screws, washers, and rivets Container (metal) Culvert Firearms Foundry products manufacture (electrical only) Heating, ventilating, cooking, and refrigeration supplies and appliances Iron fabrication (ornamental) Machinery manufacture Nails, brads, tacks, spikes, and staples Needle and pin Plating, electrolytic process Plumbing supplies Safe and vault Sheet metal products Silverware and plated ware Stove and range Tool, die, gauge, and machine shops Tools and hardware products Vitreous enameled products Textiles, Fibers and Bedding Bedding (mattress, pillow, and quilt) Carpet, rug and mat 02/08 1 -2 -188- - 97- Hat bodies of fur and wool felt manufacture (including men's hats) Hosiery mill Knitting, weaving, printing, finishing of textiles and fibers into fabric goods Rubber and synthetic treated fabrics (excluding all rubber and synthetic processing) Yarn, threads and cordage Wood and Pacer Products Basket and hamper (wood, reed, rattan, etc.) Box and crate Cooperage works (except cooperage stock mill) Furniture (wood, reed, rattan, etc.) Pencils Planing and mill work Pulp goods, pressed or molded (including paper mache products) Shipping container (corrugated board, fiber, or wire bound) Trailer, carriage, and wagon Veneer Wood products Unclassified Uses Animal pound Animal, poultry, and bird raising, commercial Automotive repair, minor, major, and heavy Building materials storage and sales (cement, lime, in bags or containers, sand, gravel, shell, lumber, and the like) Bus garage and repair shop Button manufacture Carbon paper and inked ribbons manufacture Cigar and cigarette manufacture Circus grounds Cleaning and dyeing of garments, hats and rugs Coal and coke storage and sales Contractor's shop and storage yard Exposition building or center Fairgrounds Fur finishing Greenhouses, wholesale Industrial vocational training school, including internal combustion engines Kennels Laboratories, research, experimental, including combustion -type motor testing Leather goods manufacture, but not including tanning operations Laundries Livery stables and riding academy Market, wholesale Motion picture production Outside storage (i) All outside storage shall be screened from view from the at -grade public right - of -way; (ii) The outside storage may not be located in the required minimum building setbacks. 02/08 1-2 -189- - 9g- Printing, publishing, and engraving Produce and storage warehouse Railroad switching yard primarily for railroad service in the district Theater, including a drive -in or outdoor theater Tire sales and service Tire retreading and vulcanizing shop Truck or transfer terminal, freight Truck sales and repair (heavy load vehicles) Truck stop, with overnight accommodations permitted Vehicle impound yard Wholesale houses and distributors Sports arena or stadium Section 20-3 Objectionable Use. The following use, having accompanying hazards, such as fire or explosion may, if not in conflict with any law or ordinance in the City of Corpus Christi, may be located in the "1 -2" Light Industrial District only after the location and nature of this use has been approved by the Board of Adjustment after public hearing as provided in Article 29. The Board shall review the plans and statements and shall not permit this use until it has been shown that the public health, safety, morals, and general welfare will be properly protected, and that necessary safeguards will be provided for the protection of surrounding property and persons. The Board in reviewing the plans and statements shall consult with other agencies created for the promotion of public health and safety. (Ordinance No. 25534, 10/21/03) (I) The storage of explosives used for perforating or fracturing (freeing) oil and gas well casing, provided that the storage has been authorized by permit issued by the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and by permit issued by the City Fire Marshal. Section 20-4 Parking Regulations. The parking regulations for permitted uses are contained in Article 22. Section 20-5 Off-street Loading Regulations. The off - street loading regulations for permitted uses are contained in Article 23. Section 20-6 Height and Area Regulations. Height and area requirements shall be as set forth in the chart of Article 24, and in addition the following regulations shall apply: 20 -6.01 There shall be a side yard not less than ten (10) feet in width on the side of a lot adjoining an "R -1A", "R -1B", "R-2", "A -1" "A -1A ", or "A -2" residential district. 204.02 There shall be a rear yard not less than ten (10) feet in depth on the rear of a lot adjoining an "R -1A ", "11-1B ", "R -2 ", "A -I ", "A -1A ", or "A -2" residential district. 20 -6.03 Whenever any building in the "1 -2" Light Industrial District adjoins or abuts upon a residential district, such building shall not exceed three stories nor 45 feet in height, unless it is set back one foot from all required yard lines abutting such residential district for each foot of additional height above 45 feet. 20 -6.04 Whenever any building or structure, including but not limited to a bird coop, canary, corral, dog run, paddock, pen, pigeon cote, rabbit hutch, stable, or stall in the 9-2" Light Industrial District used to house animals, poultry, or birds in an animal pound, commercial animal, poultry, or bird raising establishment, or kennel, adjoins or abuts a residential district, the building or structure shall be set back not less than 100 feet from all required yard lines abutting a residential district. 02/08 1 -2 -190- - 99- (I) A Farm -Rural zoning district is not considered a residential district for the purposes of this subsection. (2) No setbacks are required for fenced pastures of at least one acre used to hold livestock, such as cattle and horses. (Ordinance 24567, 08/28/01) Section 20-7 Supplementary height and area regulations are contained in Article 27. 02/08 I -2 -191- Attachment 10 Zoning Case: 0509 -03 Ronald & Robert Beck; From: "F -R" Farm Rural District &'B -4" General Business District to "I -2" Light - industrial District. Rating Max. 100 1. Mix land uses. 0 2. Take advantage of compact building design. 0 3. Create a range of housing opportunities and choices. 0 4. Create walkable neighborhoods. 0 5. Foster distinctive, attractive communities with a strong sense of place. 0 6. Preserve open space, farmland, natural beauty, and critical environmental areas. 0 7. Strengthen and direct development toward existing communities. 10 8. Provide a variety of transportation choices. 0 9. Make development decisions predictable, fair and cost effective. 0 10. Encourage community and stakeholder collaboration in development decisions. 0 Staff Smart Growth Rating 10 —192— MINUTES REGULAR PLANNING COMMISSION MEETING Council Chambers- City Hall Wednesday, May 13, 2009 5:30 P.M. COMMISSIONERS: Rudy Garza, Chairman A. Javier Huerta, Vice - Chairman James Skrobarczyk John C. Tamez Johnny R. Martinez Evon J. Kelly Govind Nadkarni * Absent Mark Adame John Taylor STAFF: Johnny Perales, PE, Interim Assistant City Manager Development Services Faryce Goode - Macon, Assistant Director of Development Services/Planning Miguel S. Saldaiiia, AICP, Senior City Planner Lisa Wargo, Senior City Planner Annissa Garrett, City Planner Jay Reining, First Assistant City Attorney Elena Juarez, Recording Secretary Marco Castillo, Project Manager Dan McGinn, Project Manager Robert Payne, AICP, Senior City Planner Si usted quiere dirigirse a la comision y su ingles es limitado, habr£ un interprete de espadol a ingles en la junta para ayudarle I. CALL TO ORDER A quorum was declared and the meeting was called to order at 5:40 p.m. III. PUBLIC HEARING AGENDA ITEMS B. ZONING 1. NEW ZONING b. Case No. 0509 -03 Roland & Robert Beck — A change of zoning from "F -R" Farm -Rural District and "B -4" General Business District to an "I -2" Light Industrial District resulting in a change of land use from a vacant use to a light industrial use Hudson Acres Annex, Block I, Lot 10, located on the southside of Leopard Street approximately 500 feet east of Main Drive and 1,000 feet west of Rhew Road. Lisa Wargo, Development Services, presented the above case stating the applicants as Roland and Robert Beck. Ms. Wargo stated the applicants are requesting a change of zoning from "F -R" Farm -Rural District and a "B-4" General Business District to an "I -2" Light Industrial District resulting in a change of land use from vacant use to a light industrial use on the property described above. Ms. Wargo stated the purpose of the district is to provide for continued agricultural and cultivation. She also stated the following: the district also assists in the control of scattered commercial and industrial uses, use regulations permit single family dwellings, farm labor camps, field and truck crops, brush and pasture land, livestock ranches except swine and guest ranches, and oil and gas wells, barns and accessory buildingl 9G -also permitted and a minimum lot size requirement of five (5) acres. Ms. Wargo stated regarding the "I -2" district: provides for light manufacturing, fabricating, warehousing, and wholesale distributing, off- street loading with access to a major street or railroad, front yard setback of twenty (20) feet, no side or rear yard setbacks, unless adjacent to residential district which would require ten (10) side and rear yard setbacks. Ms. Wargo stated staff is recommending approval of the applicant's request for a change in zoning from the "F -R" Farm -Rural and "B -4" General Business Districts to an "I -2" Light Industrial District for the outdoor storage of equipment and the construction of metal buildings in the future. In response to Commissioner Skrobarczyk, Yvette Aguilar stated fencing would be required if the adjacent lot is occupied. In response to Commissioner Tamez, Lisa Wargo stated the Smart Growth Principles rating is low because there is currently residential development adjacent to the subject property. In response to Vice -Chair Huerta, Juan Perales, Development Services stated the case the Vice -Chair most likely recollects is the Rhue Industrial tracts project. In response to Commissioner Skrobarczyk, Mr. Perales stated there were several items associated with Rhue Industrial tracts having to deal with Master Wastewater plan. Commissioner Tamez stated he was uncomfortable with light industrial district next to residential district. Public hearing was opened. Roland Beck, 615 Colonial, Portland, TX, is the applicant and came forward in favor. Mr. Beck stated currently they are using the area for light industrial and were unaware the area was in fact not zoned for light industrial. Mr. Beck stated he only wants the area zoned light industrial to allow for outdoor storage of oil rig vehicles. Mr. Beck also stated he had no interest in placing fencing along the property line because the storing of the oil rig vehicles is merely a courtesy to their customers. In response to Commissioner Taylor, Mr. Beck stated fencing might be considered if high dollar equipment is stored on the property. In response to Commissioner Taylor, Mrs. Goode -Macon stated the "I -2" District requires fencing adjacent to residential properties. Public hearing closed. Motion to approve was made by Commissioner Skrobarczyk and seconded by Commissioner Taylor. Motion passed with Vice -Chair Huerta and Commissioner Tamez in opposition and Commissioner Nadkarni being absent. H:\PLN- DIR%SHARED \I. PLANNING COMMISSION\2009 CCUUNE'09\L509 -03 MINUTES.DOC —194— Page 1 of 3 AN ORDINANCE AMENDING THE ZONING ORDINANCE, UPON APPLICATION BY ROLAND AND ROBERT BECK, DBA SOUTH TEXAS R &R RENTALS, BY CHANGING THE ZONING MAP IN REFERENCE TO BLOCK 1, LOT 10, HUDSON ACRES ANNEX, FROM "F -R" FARM - RURAL DISTRICT AND "B-4" GENERAL BUSINESS DISTRICT TO "I- 2" LIGHT INDUSTRIAL DISTRICT; AMENDING THE COMPREHENSIVE PLAN TO ACCOUNT FOR ANY DEVIATIONS FROM THE EXISTING COMPREHENSIVE PLAN; PROVIDING A REPEALER CLAUSE; PROVIDING A PENALTY; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the application of Roland and Robert Beck, dba South Texas R &R Rentals, for amendment to the City of Corpus Christi Zoning Ordinance and Zoning Map; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, May 13, 2009, during a meeting of the Planning Commission, and on Tuesday, June 23, 2009, 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 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. That the Zoning Ordinance of the City of Corpus Christi, Texas, is amended by changing the zoning on Block 1, Lot 10, Hudson Acres Annex, located on the southside of Leopard Street approximately 500 feet east of Main Drive and 1,000 feet west of Rhew Road, from "F -R" Farm -Rural District and "B -4" General Business District to "1 -2" Light Industrial District. (Zoning Map 056046) (Exhibits A and B) SECTION 2. That the official Zoning Map of the City of Corpus Christi, Texas, is amended to reflect the amendment to the Zoning Ordinance made by Section 1 of this ordinance. SECTION 3. That the Zoning Ordinance and Zoning Map of the City of Corpus Christi, Texas, approved on the 27th day of August, 1937, as amended from time to time, except as changed by this ordinance and any other ordinances adopted on this date, remain in full force and effect. HALEG- DR \Shared\LEGAL- DEV.SVCS\2009 Agenda \ 6 -23 \O120- Foning0509- 03- BeckdbaSTxRRRentals- I -2.doc Page 2 of 3 SECTION 4. That to the extent that this amendment to the Zoning Ordinance represents a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the Zoning Ordinance, as amended by this ordinance. SECTION 5. That all ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed. SECTION 6. A violation of this ordinance or requirements implemented under this ordinance constitutes an offense punishable under Section 35 -3 of the Zoning Ordinance of the City of Corpus Christi. SECTION 7. 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 8. That upon written request of the Mayor or five Council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed upon first reading as an emergency measure on this day of June, 2009. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Joe Adame Mayor, City of Corpus Christi City Secretary APPROVED: June 15, 2009 CZ/1.44e9-A1-- eborah Walther Brow Assistant City Attorney For City Attorney H:\ LEG- DIR \Shared\LEGAL- DEV.SVCS\2009 Agenda \ 6- 231RD' zoning0509- 03- BeckdbaSTxRRRentals -1 -2. d oc Page 3 of 3 Corpus Christi, Texas day of , 2009 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, Joe Adame Mayor, City of Corpus Christi Council Members The above ordinance was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla G. Leal John E. Marez Nelda Martinez Mark Scott H:\LEG -DIR \Shared \LEGAL- DEV.SVCS\2009 Agenda\ 6- 231ORD- zonrntaar 3- BeckdbaSTxRRRentals- 1 -2.doc QUO 2S -2 0 CIRC E 2 ASSESSOR F- S MAP 110 R R -4 3 a R Y ` om_ 6 Ate_ —5_ —4-- a r� 10 41C 64, 11 21 1a 11 A S 26 m A,:i.:,. L'10 4tN RHO 20 21 22 2 old.o4 i 31 JR 22. 26 9 6 39 30 40 86.9 /SP 36 ,32 36 39 49 t , AtitSSORS MAP a,a;. CASE # 0509 -03 Applicants Request From: "F -R" and "B4" To: "1-2" Ordinance No.: NEX' SESSORS MAP 1.113 RHEW INDUS'. 140 3 S 7 AL TR9CTS U 10 11 12 13 14 mra0iw"6 °""rR 1. 'LOCATION SIAM SUBJECT PROPERTY In, COO Corpus 1 ElAgir A I -2 2 CIRCLE 2 ASSESSOR MAP 140 SESSORS MAP 141: KNEW INDUST L TR5ICTS U 10 LI 12 SSORS MAP 140 CASE # 0509 -03 Planning Commission and Staff Recommendation Approval of the Applicant's request for an "1-2" District Ordinance No.: -199- LOCATION MAP PAGE 04/05 re re U W m ;ibi:i5825b4 0b/Z4/2000 10:4b Related to Item No. 10 2008 bII> f4or QECE Wes aoo9en At_ Lr,o_arc1 NSOLIDATED PROPERTY TAX STATEMENT _ I \ A. a W .DD in TAXES ARE-DUE UPON RECEIPT. TAXES WILL BECOME DEUNOUENT ON FEBRUARY 1 ,2008. PENALTY AND INTEREST WILL HE ADDED MONTHLY BEGINNING FEBRUARY 1,2009. The jurisdiction listed belcw have oansolidsted 910k tax collections for 2008. Please mbar questions la lb* Nueess County Tax Office by telephone at 1361) 981.0230 ar by mall at P.O. Box 2810, Corpus Christi, Texas 78403.2810 Ran ro-Br anates -Tax- ASSe SSOM1GOII ectcr- ILfeces- Gounty Texa- `Ye TslishaA '- o ' " ACCOUNT NUMBER 3596 -0001 -0100 DATE OF NOTICE 09/30/08 LEGAL DESCRIPTION HUDSON ACRES ANNEX LT 10 BK 1 7935 LEOPARD ST 00000 17.8100 OWNER NAME AND ADDRESS BECK ROLAND & ROBERT DU -SOUTH TEXAS R & R RENTALS P O BOX 1913 - BEEVILLE TX 78104 Ilhollnlu uiilinninLullid rnuilisi6uhllaiBrulrll 0033 )119 APPRAISAL ASSESSPENT AND :XEMPTI0NR Properly Om Land 161011119 Improvements Personal Properly and Minerals Told Appraised Value 100 %Amassed lhlue Txenplens Oualir 4119 Nun47uaRynp 162 236 Set 8MS 162 336 An 04a Sold $62,336 562,935 $62.334 Taxing Unit 1009 Assessed Value Cp Value Exenlp$m Amoud Tunable Value Tax Rate MINN Tax lion? Ear yy Pa" to lbsoemis CIF evalade) 3% 0c1 216Nosenbn 1 %Dasembe MACES COUNTY FARM TO IARKET MAD IMF ITAL DISTRICT CITY OF CORPUS C4f IS1 I DEL MAR •'ALLEGE -OLOSO • MIDakY ISO EMERGENCY SFRV GIST F1 162,335 162,335 $62,335 $62,335 $62,335 662,335 S62.335 60 10 60 S0 $0 $D 50 162, 335 162, 335 $62,335.14471200 $82.335..56394600 662.336.24171200 $62.3361.3322000 162135.10000300 .35134000 .00433800 121911 $2.70 590.75 5351.47 6150.71 5630 13 562.24 $219.91 62.10 (90.25 1351.47 1150.71 6630.43 162.34 1219.01 $2.70 $30.25 $351.47 $150.71 $130.43 162.34 5210.01 $2.70 $90.25 $351.17 1150.71 5830.93 $62.34 Total Tax Duo by JANUARY 31, 2008 is $1 706.91 51, 706.91 61,70$.91 11, 708.91 ► N you believe there is an error In the eau* or exemptions, you may contact the NIECES COWRY APPRAISAL 10-1? them bees should bepsld by year murBaee eanpany or aeon; phew Ward this bleb On for peyneM. 1,...To make payment by: 11111111M111111 Credt Card: Visit our webaite a1 www.cc nuecestx.ushaxoffice - DISTRICT at (561) BSI-8022 ..sa.�� 9 'l•23• oe Hill ,,,# (v5!7 or call l- 800- 2PAYTAK (1- 800.272.9829) Code: 6138 - '!f� -7 ,.�. -. Rasss -000l °too (i; ai) Debit Card: Available br use only in the Corpus Christi lex office bcalion - - 111 5 5 1 7 LT 1 O rE.� IF YOU ARE 65 YEARS OR OLDER OR ARE DISABLED AND TIE PROPERTY DESCRIBED IN THIS DOCUMENT IS YOUR RESIDENCE HOMESTEAD YOU SHOULD ME TLEED TO PAY AT MAST OTNREGARDING F OF YOUR ENTITLEMENT BEFOOREE JANUAARRyY 31 2009 D PPAAYETHE REMAINING G TAXESWWIIT OUT PENA TIES OR YOU INTEREST IN THREE EQUAL INSTALLMENTS BY JULY 31,2009. PLEASE CONTACT OUR OFFICE' FOR MORE DE-AILS. accordance g In expr ed Ca each h comparriison. tax assessed value, taxablev IMRORTTAAN7-2001ITAX- YEAR - COMPARISON INFOVSAAIION pKC ntaagge'I�DDireaseUec�6e In In taxes the 2003 cted IdYaalsrinformation. omlr7 _ per �e e to 8C prior Sr sfiu ethe 003 tax year. 3598-0001- 0100 2008 2007 2006 2005 2004 2002 6TH YEAR D1FF TAXING UNIT APPRAISED 162,335 362.335 662,335 162.335 02,335 562,335 .00 NUEOES TAX VALUE 182.335 662,315 662.335 562,335 162,335 362.335 .00 0011'IIY TAX RATE .35134000 .351383(0 .36593210 .39892900 .42423500 .37969300 •7.410000 LEVY 6219.0 5219.13 $226.'0 $248.67 1264.45 623648 .7.47 %OFF -. CI -3.15 •8.77 •5.97 11.73 11 ROAD TAX VALUE $62,35 $62,335 $12,335 662,335 562.315 162.335 .00 TAX RATE .054335E0 .00420560 .00474600 .00516200 .00549690 .00666400 - 23.73000 LEVY 02 -70 12.18 12.96 03.22 63.13 53.55 •23.94 % DIFF .75 -9.16 .8.07 .6.12 -3.38 4)SPITAL TAX VALUE 562.3. 362,335 362,335 162,331 $62,315 562,335 .00 )ISTRICT TAX RATE .11478260 ,14478200 .16071500 .17490300 .22522500 .22802800 .36.51000 LEVY 500.75 100.25 1100.18 $109.03 1140.39 5142.14 -36.51 % DFF .00 -9.91 -8.12 -22.34 •1.23 :ITT OF TAX VALUE $62,335 $62;275 062,335 562,336 562,315 562,335 .00 MOP US OOR TAX RATE .5084600 .56384600 .60237200 .621799)0 .63417590 .644175)0 - 12.47000 LEVY $351.'7 5351.17 $375.49 $390.39 $395.11 3401.55 -12.47 % OFF .00 -6.40 -3.'4 -1.32 -1.55 DEL MAR TAX VALUE 162,335 562,336 662,335 $62,335 $62,335 162,335 .00 301LEOE TAX RATE .21175200 .24208900 .25572350 .22332705 .233770)0 .23566130 2.6000000 LEVY 1150.71 3150.51 $159.10 1142.33 $14532 1146.30 2.59 % DIFF • .13 -5.33 1139 -2.33 -.50 T 11 TAX VALUE 662,335 $62,335 662,335 $62,335 662.335 562.335 .06 ISO TAX RATE 1.3322010 1.2822000 1.61220)0 1.7422000 1.724700 1.7247000 •22.76000 LEVY $830.43 5799.26 01,004.36 51,056.00 $1,075.)9 31,075.09 -22.76 % OFF 3.0 •20.47 .7.16 1.01 - .30 16ESD 0 1 TAX VALUE 662.315 662.335 $67,335 162.335 662,335 162,335 .00 TAX RATE .10000000 .07500000 .071000)0 .67500600 .06000030 .06000000 66.E70000 LEVY $62.34 646.75 146.75 $46.75 037.40 $37.40 66.68 % DIFF 33.35 .00 .30 25.00 .00 - - TAX VALUE TAX RATE _LEVY % OFF TAX VALUE TAX RATE LEVY i 7 0 n 0 1 n 0 n Lr 9 - IF YOU ME SS YEARS OR OLCER OR ARE DISABLED AND S S DD INO UE S U REE�H-YEMY HAO IN THE YO-.- AE-NTTIIT D O APPRAISAL DISTRICT EOURTH OCR TA BEFORE 3 PAY TIE REMAINING - -- INTEREST IN THREE EQUAL INSTALLMENTS BY JI Y 312069. PLEASE CONTACT OUR bFFICf FOR MDREDETNLS IMPORTANT 2008 TAX YEAR COMPARISON INFORMATION In accordance with Senate 816018 passed during the 2008 Legislative Session, the 2008 tax comparison information is furnished below. The 2006 assessed value, taxable value, Mamie, and the fax amount dde is compared to the 2003 tole ear 81Tonnefon The percentage increase&depease is expressed kr each comparison. The percentage increase/decrease in the taxes calculated is also compared to eacriyrloryear since the 2605 ta6.ysar. -315118001=0090 - --Er ._ 1007 2008 2005 2003 2003 5TH YEAR DIFF TAXING UNIT APPRAISED 1165.138 1165,138 1165,136 6146,282 1146,287 5146.262 12.69 NUECES TAX VALUE $165,138 5165.138 5166.136 1144.282 5146.282 5146,262 12.8P (WNW TAX RATE .35134000 .35136380 .36503200 .39192906 .47423500 .37969300 • 7.470000 LEVY $580.20 $560.27 $604.29 1183.56 3E20.58 1955.12 1.46 14 OFF -.01 -3.97 3.55 -5.97 11.73 FM ROAD TAX VALUE 1165.136 5165, 131 5165,138 1146,262 81 45,262 5146,282 12.8E TAX RATE .00433800 .00429500 .00474600 .00516700 .00549600 .00568500 - 23.73901 LEVY 17.16 67.09 17.84 17.56 56.04 98.32 .43.94 F % [IMF .99 -9.57 3.70 4,97 •3.37 HOSPITAL • TAX VALUE 5165,136 1165.138 $165,133 5146.282 5148,282 1146,282 12.89 DIST6.ICT TAX RATE .14478200 .144/6200 .16071500 .17490300 .22522600 .22802800 - 36.61000 LEVY 3239.09 8239.09 $275.40 $255.85 5329.48 1333.56 •28.32 91 DUFF .00 4.91 3.73 -22.34 •1.23 CITY CF TAX VALUE 5163.138 $185,138 5155.138 8148,262 $146,282 $145.282 12.69 0.44PLS CHR TAX RATE .56334600 .58384600 .80237200 .62579990 .83417509 .64417500 - 12.47000 LEVY $931.12 031.12 5994.75 6915.43 1921.61 1112.31 -1.19 % DIFF .00 .6.40 8.66 •1.32 •1.55 DEL VAR TAX VALUE 5165,138 1165.136 3165,136 5146,282 $143,262 $143,282 12.89 COLLEGE TAX RATE .24128200 .24246900 .25572300 .22832306 .23377000 .23566100 2.6000000 LEVY $319.27 $399.76 $422.30 1334.00 0311.06 $344.73 15.82 %DIFF - .13 •6.33 26.44 -2.33 . .80 T M TAX VALUE 5485.136 6165,138 5164,538 6145,282 $144,287 $146,212 12.89 ISD TAX RATE 1.3312000 1.2612000 1.6112000 1.7422000 1.7247000 1.7247000 - 22.76000 LEVY $2.119.87 12.1'7.40 52,582.35 $2,511.53 $2,522.93 32.522.93 •12.80 %DIFF 3.90 •10.47 4.47 1.01 .U0 4/ SD • 1 TAX VALUE $185.131 1185.130 5635.136 9146,282 5146,262 5141.282 12.89 TAX RATE .10000000 .97590099 .07500000 .07500000 .O6os0000 .06010000 65.670000 LEVY 6165.14 5623.85 3123.65 $109.71 $67.77 507.77 66.15 % D2FF 33.34 .00 '2.69 25.00 .00 TAX VALUE TAX RATE LEVY %DEF TAX VALUE TAX RATE LEVY i i 3 3 3 • a i 0 _ // 2008 0NS0LIDATED- PROPERTY_ TAX STATEMENT_._- _..__ -_ ar TAXES ARE DUE UPON RECEIPT. TAXES WILL BECOME DELINQUENT ON FEBRUARY 1, 2009. r r re o-R rCanalesi- ax-Assesso1'- GolIectcr -Nueces-e0tlnty rTexas C DOI LM,/ LOU J a cr. +V • ?tutees County Appraisal District 201 N. Chaparral, Ste. #206 Corpus Christi, Texas 78401 -2503 Phone_ (361)881 -9978 www.nuecescad.net 39526 TIC •ouse•••••AVfO••3 -MMIT 751 HECK ROLAND : ROBERT DBA -SOUTH TEXAS R 6 R RENTALS P 0 BOX 1913 BEEVILL , TX 46104 -1913 111,166 811111 n13JupII1iI I1nllr,n1ln14nI1I 2UU9' NOTICE OF APPRAISED VALUE This il>si NOT a Tax Bill DO NOT PAX FROM TR'S NOTICE Date: 5-01 -2009 �( COC ?T vl v1 "CR >TRELI ■DDRF'-s 7935 LEOPARD ST TX PROPFRTI' DC`;( -RlPl l01 HUDSON ACRES ANNEX LT 9 BX 1 2004 Appraised Value; 1462821 % CEG (2004 to 2089): 36.628 99 ave iPPF j the property listed Wave'rr Ili 2804•taf frai "Based on the appraeiE'date oT7enaary—I trap year, the` &awaiteel is as follows: Total Market Value of this Property Exem 165138 165138 165138 165138 165138 165138 165138 City Of CC Hospital District Emery Boas Dist #1 Rupees County Del Mar Jr Coll ran TO Mkt ROOM T -M ISD TOTAL 199851 1.999S1 199851 199051 199951 199851 199851 199951 109051 199851 199851 199851 199851 199851 0.563846. 0.144702 0.100000- 0.351340' 0.241782: 0.004338 1..332200 1126.85 269.35 199.85 702.16 403.20 8..67 2662.42 5472.50 (lie eilove'ax atth Mlwri ie lima but tithi for the twine Vim. The eoveomag body of etch wit - vtiool boa may `0reesi°'onO"t 11034 IIIRGerWarraieli noetst The grad d aamid only defemin Your pmpatyb valet dLa t°O°g units wall sal tax rays ins this year. The Tan deatneeinehe manna ulyee r bet we Tar propene car beneath decided &yorhese sand eke*. ended inquires veneer ngydrraseshouldbe &ecteaOpens aide ' Xf you am 63 or older and received the 310.000 school tax exemption on your home lad year from the school teed above, your school taxes Or this year will not be higher than when-you S received the exemption on this home. If you lammed your propany (by adding rooms or buildings), your school tax Ceding may treats for mgaovonrnle. If you are a surviving prase age 55 or older, you may Wain the school tax xiliog, ;onset the appraisal office if you disagree with this yours proposed value for your property or if you have any problems with the prape* description or address infamaion, if the cabin cannot be resolved you have a rigid to schedule a heating with the appraisal mvicw board (ARE) by filing a WRITTEN proem with Ike Board You may either use the provided nrm m empire * Lener (mclydi..g your sae, your property's dcev ptium and whet appraisal urea: salon YOU disagree with). Your moan milts be deliveredby mail to the above addmse r in potion a t he appraisal Marta office before the protest deadline. rya' have any other deetiaa or need mere inform: Mom please estet the appraisal aaioe M dun phone number or ddrat ea tired a6./.6 atemety, Igo/Appraiser Meats County Appraisal DbArtet Nasal Deedgee�1012mi9 ABS Rearbsgs Beret 51291009 tootion of ARB Bearimm: 201 N. CNAPARRWL. CORPUS CHUM, Usra, TX 78101. 167 FLOOR BOARD ROOM SEE REVERSE SIDE Tuesday, Jun 23, 2009 03:57 PM z 0 J : / / .,a...,. a O ISO M [V/ /.COS .f✓ 3p81o`414 58�yy11 01'7481tICo olo/c M oo,o! W 5 ® o / ... ... �.,»r.... J 1515 R e� 2 .faoscf 3 oa cf ww _ _ e,� ' ¶lfl f I I I jJ' :I,cr,1.4 i i I I P` !1 r Ir i ri vesI. 1 — '1 1 1 1 "1�1'1°1a1 °I "1 °Ixl °1 ~1 "1a1L1 1 Iz1 1 1 1^lslsi®i° n4c1 I I w IU H [ sisinu x9'•T �_...... - rx+..w 11 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 06/30/09 AGENDA ITEM: Resolution authorizing the City Manager or designee, to accept a grant from the Environmental Protection Agency in the amount of $400,000 for a three year community -wide Brownfields assessment program. ISSUE: The City of Corpus Christi Environmental Services Office applied for an Environmental Protection Agency (EPA) Brownfields Assessment Grant on November 14, 2008 to establish a community -wide program for identifying and assessing properties which could be redeveloped or reused as productive resources while gaining economic, environmental, health and social benefits. The City of Corpus Christi was one of two locations in Texas to be selected to receive funding through American Recovery and Reinvestment Act (ARRA) of 2009 for brownfields activity. There is not a required City funding match. REQUIRED COUNCIL ACTION: Approve the resolution to complete the Brownfields Assessment Grant execution PREVIOUS COUNCIL ACTION: November 11, 2008 Council resolved to allow the City to apply for an EPA three -year community wide Brownfields Assessment Grant. CONCLUSION AND RECOMMENDATION: EPA is working to expedite the delivery of stimulus funds and requested the completed documentation by the first of July. City staff recommends the City Council approve the resolution required to complete request for grant funding. Attachments eggy L. Sumn Director of Environmental Services PeggyS ©cctexas.com (361) 826 -1868 -203- UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 Honorable Henry Garrett Mayor of Corpus Christi PO Box 9277 Corpus Christi, TX 79869 -9277 Dear Mayor Garrett: MAY 7 2009 9.N6\02137476.70 n`6 it 9,,, 0 L� MOO N e Weee of tbe MAYOR, F ti OFFICE OF SOLID WASTE AND EMERGENCY RESPONSE On behalf of the United States Environmental Protection Agency (EPA), I am pleased to congratulate you and confirm that the City of Corpus Christi has been selected as one of the entities with which EPA will pursue negotiations to award cooperative agreements for two assessment grants funded through the American Recovery and Reinvestment Act (ARRA) of 2009. The City of Corpus Christi submitted an outstanding grant proposal, and we deeply appreciate the tremendous commitment of time and energy that went into its preparation. Through the Small Business Liability Relief and Brownfields Revitalization Act of 2002, and this year through the ARRA, EPA is working to help states and communities around the country clean up and revitalize brownfield sites. We fully expect that these brownfield projects will provide benefits to the environment and economy of local communities. Monica Chapa Smith, your region's Brownfields Coordinator (214- 665- 6780), will work closely with the City of Corpus Christi to negotiate a cooperative agreement prior to the award of the grant. We look forward to working with your staff on the Brownfields program in continued Federal, state, and local government cooperation. cc: Monica Chapa Smith cer nj N.\Breen Acting Assistant Administrator • Internet Address (URL) • ntip :/www.epa.gov Recycledlaecyclable • Printed will] Vegetable Oil eased Inks on 1005E Poslconsumer. Process Cnlonne Free Recycled Paper —204— BACKGROUND INFORMATION On November 14, 2008, the City of Corpus Christi (City) applied for a three -year EPA grant totaling $400,000 to implement a program to assist in assessment of public and private properties which are contaminated or perceived to be contaminated, causing them to be idle or under - utilized. We requested $200, 000 for petroleum related assessments and $200,000 for hazardous materials related assessments. The grant application emphasized a focus on the north side section of the City (complementing the Development Services studies and plans) and the downtown area although any real property within the city may be eligible for the assessment funds. The majority of the funds are designed to be used for conducting Phase I and Phase II environmental site assessments on selected properties. This would provide new jobs to environmental professionals and assist in transitioning these properties into more productive sites, ultimately increasing ad valorem property values. In an EPA letter dated May 7, 2009, Mayor Garrett was notified that the City was selected as one of the entities they intended to pursue negotiations and award two assessment grants. The assessment grants are funded through the American Recovery and Reinvestment Act (ARRA), commonly known as stimulus money, instead of the historical competitive grant funds. Therefore, in order to award the cooperative agreements as soon as possible, EPA has expressed a sense of urgency for completing all appropriate documentation and negotiations quickly. Two separate applications and work plans (one for each $200,000 grant) are being finalized and will be submitted to the EPA following approval by Council of the proposed resolution. Design and implementation of an outreach program to educate property owners and developers of this available funding will begin immediately upon final work plan approval by EPA. —205— RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO ACCEPT A GRANT FROM THE ENVIRONMENTAL PROTECTION AGENCY IN THE AMOUNT OF $400,000 FOR A THREE YEAR COMMUNITY -WIDE BROWNFIELDS ASSESSMENT PROGRAM. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager, or designee, is authorized to accept a grant from the Environmental Protection Agency in the amount of $400,000 for three year community - wide Brownfields assessment program. SECTION 2. The City Manager, or designee, may reject, alter the terms of, or terminate the grant. ATTEST: Armando Chapa City Secretary APPROVED as to form: June 25, 2009 R. rning First A sistant City Attorney For the City Attorney Brownfields grantacceptres 06122009 CITY OF CORPUS CHRISTI Joe Adame Mayor —206— Corpus Christi, Texas of , 2009 The above resolution was passed by the following vote: Joe Adarne Chris N. Adler Brent Chesney Larry R. Elizondo, Sr. Kevin Kieschnick Priscilla Leal John E. Marez Nelda Martinez Mark Scott Brownflelds grantacceptres 06122009 —207— 2 12 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: June 30, 2009 AGENDA ITEM: Resolution authorizing the City Manager or designee to submit a competitive funding application to the U. S. Department of Urban and Housing Development in the amount of $8,060,000 for the Neighborhood Stabilization Program 2 under the American Recovery and Reinvestment Act of 2009 and execute all related documents. ISSUE: A Notice of Fund Availability (NOFA) for the Neighborhood Stabilization Program (NSP) 2, herein referred to as NSP2, was issued on May 4, 2009, advising the public of funding availability as a competitive application for the purpose of assisting to stabilize neighborhoods whose viability has been and continues to be damaged by the economic affects of properties that have been foreclosed upon and abandoned. REQUIRED COUNCIL ACTION: Authorize the submittal of a competitive funding application to the U. S. Department of Housing and Urban Development for the NSP2. FUTURE COUNCIL ACTION: If selected for funding, appropriation of NSP2 funding. CONCLUSION AND RECOMMENDATION: Staff recommends the authorization to submit a competitive funding application to the U. S. Department of Urban and Housing Development in the amount of $8,060,000 for the Neighborhood Stabilization Program 2 under the American Recovery and Reinvestment Act of 2009 and execute all related documents. Margie C. Rose Assistant City Manager /Interim Neighborhood Services Director MaraieR ancctexas.com 361.826.3232 —211— BACKGROUND INFORMATION The U.S. Department of Housing and Urban Development (HUD) announced the NOFA distribution and use of $1,930,000,000 (amount includes all administrative funds) through the NSP2 from the American Recovery and Reinvestment Act ( "ARRA ") of 2009. NSP2 is a component of the Community Development Block Grant (CDBG) program [authorized under Public the Housing and Community development Act of 1974, 42 U.S.C. 5301 et seq. (HCD Act)]. Eligibility and allowable costs NSP2 eligible uses must be correlated with CDBG - eligible activities. This correlation also reduces implementation risks, because it will ensure that the NSP2 grants are administered largely in accordance with long- established CDBG rules and controls. Table 1 below shows the eligible uses under NSP and the corresponding eligible activities from the regulations for the regular CDBG entitlement program that HUD has determined best correspond to those uses. If a recipient creates a program design that includes a CDBG- eligible activity that is not shown in the table to support an NSP2- eligible use, the Department is providing an alternative requirement that HUD may allow a recipient an additional eligible- activity category if HUD finds the activity to be in compliance with the NSP statute. NSP2 recipients should note that the Recovery Act amended the Housing and Economic Recovery Act (HERA) of 2008 eligible uses for land banks and redevelopment of demolished or vacant property to read as shown in Table 1 below. As under the regular CDBG program, recipients may fund costs, such as reasonable developer's fees, related to NSP2- assisted housing rehabilitation or construction activities. Regular CDBG administration and planning caps are not applicable to NSP grants, because some of the costs usually allocated (for example, the costs of completing the entire consolidated plan process) would be excessive in the context of the NSP program. HUD is therefore providing an alternative requirement that an amount of up to 10 percent of an NSP grant provided to a jurisdiction and up to 10 percent of program income earned may be used for general administration and planning activities. For all recipients, including states, nonprofit entities and consortia of nonprofit entities, the 10 percent limitation applies to the grant as a whole. The regulatory and statutory requirements for state match for program administration are superseded by the statutory direction at HERA, which indicates no matching funds shall be required for a state or unit of general local government to receive a grant. Requirements 1. Use of grant funds must constitute an eligible use under HERA as amended by the Recovery Act. 2. In addition to being an eligible NSP use of funds, each activity funded under this notice must also be CDBG - eligible and meet a CDBG national objective. —212— 3. Certain CDBG - eligible activities correlate to specific NSP2- eligible uses and vice versa. All NSP recipients, including states, will use the NSP categories and CDBG entitlement regulations listed below. Table 1 NSP - Eligible Uses Correlated Eligible Activities From the CDBG Entitlement Regulations (A) Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft- seconds, loan loss reserves, and shared - equity loans for low- and moderate - income homebuyers. As part of an activity delivery cost for an eligible activity as defined in 24 CFR 570.206. Also, the eligible activities listed below to the extent financing mechanisms are used to carry them out. (B) Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties. 24 CFR 570.201(a) Acquisition (b) Disposition, (i) Relocation , and (n) Direct homeownership assistance (as modified below); 570.202 eligible rehabilitation and preservation activities for homes and other residential properties (HUD notes that rehabilitation may include counseling for those seeking to take part in the activity). (C) Establish land banks for homes and residential properties that have been foreclosed upon. 24 CFR 570.201(a) Acquisition and (b) Disposition. (D) Demolish blighted structures 24 CFR 570.201(d) Clearance for blighted structures only. (E) Redevelop demolished or vacant properties as housing 24 CFR 570.201(a) Acquisition, (b) Disposition, (c) Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, (i) Relocation, and (n) Direct homeownership assistance (as modified below). 24 CFR 570.202 Eligible rehabilitation and preservation activities for demolished or vacant properties. 24 CFR 570.204 Community based development organizations. HUD notes that any of the activities listed above may include required homebuyer counseling as an activity delivery cost —213— 4. HUD will not consider requests to allow foreclosure prevention activities, or to allow demolition of structures that are not blighted, or to allow purchase of residential properties and homes that have not been abandoned or foreclosed upon as provided in HERA and defined in this notice. HUD does not have the authority to permit uses or activities not authorized by HERA. 5. New construction of housing is eligible as part of eligible -use relating to redevelop demolished or vacant properties as housing. 6. The extent necessary to allow provision of NSP- assisted homeownership assistance to persons whose income does not exceed 120 percent of median income. 7. No NSP2 funds may be used to demolish any public housing. Geographic Need and Program Targeting The "foreclosure" risk score is based on rank census tracts by two measures: (i) percent of foreclosure problems and (ii) number of foreclosure problems. Each tract receives the higher rank (from 1 to 20) from those two rankings. The "vacancy" risk score is based on an algorithm that combines 90 -day vacancy rates with foreclosure problem rates and then ranks census tracts from 1 to 20 on this estimate. The NSP tool displays the average risk score for selected census tracts. The average score is color coded with red indicating high risk. HUD grants are available only for the high risk areas. The census tracts need not have high risk scores for both foreclosure rates and vacancy rates. For applicants proposing to carry out NSP2 activities, the neighborhoods identified must meet one or the other of the following requirements (you may only select one method): (1) The average foreclosure needs index score for the identified target geography must be 18 or greater, as indicated by the index; or (2) The average foreclosures with vacancy risk index score for the identified target geography must be 18 or greater, as indicated by the index. The four (4) census tracts as identified as meeting method one (1) or two (2) above are nine (9), ten (10), fifteen (15) and sixteen point zero one (16.01). NSP2 activities can only occur in these four census tracts, and in no way as per HUD, be expanded to include other census tracts. See the attached maps delineating the four census tracts. Staff is focusing on the following NSP2 eligible uses, as shown in Table 1, (A) Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft - seconds, loan loss reserves, and shared- equity loans for low- and moderate - income homebuyers, (B) Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties, (D) Demolish blighted structures, and (E) Redevelop demolished or vacant properties as housing. —214— Income eligibility requirement changes The NSP2 program includes two low and moderate - income requirements at HERA that supersede existing CDBG income qualification requirements. Under the heading —Low and Moderate Income Requirement, HERA states that: • All of the funds appropriated or otherwise made available under this section shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income. Thus, NSP2 allows the use of only the low and moderate income national objective. Activities may not qualify for NSP2 under other CDBG national objectives using the 1) Prevention or eliminate slums and blight, or 2) Address urgent community development needs objectives. • Second, this provision also redefines and supersedes the definition of low and moderate income, effectively allowing households whose incomes exceed 80 percent of area median income but do not exceed 120 percent of area median income to qualify as if their incomes did not exceed the published low and moderate - income levels of the regular CDBG program. To prevent confusion, HUD will refer to this new income group as middle income, and keep the regular CDBG definitions of low- income and moderate income in use. Further, HUD will characterize aggregated households whose incomes do not exceed 120 percent of median income as low, moderate, and middle- income households, abbreviated as LMMH. Other requirements 1. Overall benefit supersession and alternative requirement. The requirements that 70 percent of funds are for activities that benefit low- and moderate - income persons are superseded and replaced. One hundred percent of NSP funds must be used to benefit individuals and households whose income does not exceed 120 percent of area median income. NSP shall refer to such households as low, moderate, and middle income. 2. National objectives supersession and alternative requirements are waived to the extent necessary to allow the following alternative requirements: • For purposes of NSP only, the term low and moderate income person as it appears throughout the CDBG regulations shall be defined as a member of a low, moderate, and middle income household, and the term low and moderate income household as it appears throughout the CDBG regulations shall be defined as a household having an income equal to or less than 120 percent of area median income, measured as 2.4 times the current Section 8 income limit for households below 50 percent of median income, adjusted for family size. The national objectives related to prevention and elimination of slums and blight and addressing urgent community development needs are not applicable to NSP- assisted activities. –215– Y Each applicant whose application includes assisting rental housing shall develop and make public its definition of affordable rents for NSP- assisted rental projects. A An NSP- assisted property may not be held in a land bank for more than 10 years without obligating the property for a specific, eligible redevelopment of that property in accordance with NSP2 requirements. Recipients that have NSP2 funded properties in land banks at the three year expenditure deadline will be required to fulfill this duty as part of their grant close -out agreement. i� Not less than 25 percent of any NSP grant shall be used for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of area median income. Proposed NSP2 Budget Administration (10 %) Demolition (10 %) - - -- Single Family Housing (40 units @ $63,700 each) * Multi - Family (80 units) ** Total 806,000 806,000 2.548,000 3,900,000 $8,060,000 *Factoring worst case scenario that all housing units will need to be reconstructed, if some units can be rehabilitated then more than 40 units will be accomplished. * *The most challenging part of this competitive funding application is meeting the NSP2 requirement that at a minimum 25% of those units being completed in the overall portfolio must be less than 50% of Area Median Income. Henceforth, a 80 -unit multi family facility is being proposed to meet this requirement. At a minimum and to have some significant community impact, each NSP2 applicant must apply for $5 million and no less and at a minimum rehabilitate and /or (re)construct 100 housing units. Any proposed program income derived from the NSP2 will be treated as a revolving fund and applied for similar -like activities. Timely Expenditure of NSP2 Funds All NSP2 recipients must expend 50% of their funding award on eligible NSP2 activities within two (2) years and 100% within three (3) years. Citizens Participation and Application Submission There will be a ten (10) day citizen's comment period requirement prior to the NSP2 application submission on or before 5:00 p.m. on Friday, July 17, 2009. —216— A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT A COMPETITIVE FUNDING APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN THE AMOUNT OF $8,060,000 FOR THE NEIGHBORHOOD STABILIZATION PROGRAM 2 UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 AND EXECUTE ALL RELATED DOCUMENTS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager or his designee is authorized to submit a competitive funding application to the U.S. Department of Housing and Urban Development in the amount of $8,060,000 for the Neighborhood Stabilization Program 2 under the Ameri- can Recovery and Reinvestment Act of 2009 and execute all related documents. ATTEST: Armando Chapa City Secretary APPROVED: June 22, 2009 Elizab- h R. Hundley Assi ° . nt City Attorney for the City Attorney EHres235.doc CITY OF CORPUS CHRISTI Joe Adame Mayor —217— Corpus Christi, Texas day of 2009 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla G. Leal John E. Marez Nelda Martinez Mark Scott —218— CITY OF CORPUS CHRISTI, TEXAS Census Tract 9 G NADA GRANAD K KENWOOD WELLINGTO COMANCHE BLUEBONNET THLAND S. TH NDUSTR \A' AGNES GUERIT ti, AGNES LOU- CU LOU LOU COLEMAN R TH UT SANTA ELENA HIDALGO SANTA ELENA IDALG M•RGAN EASTERN NNAN ANCIS 0 500 1,000 2,000 Feet RYAN RYAN 2 - Printing Date; Tuesday, June 2272009 U' © 2009 City of Corpus Chris , Texas iUv Source: Department of Development Services 7' ^Gn,, 'S Prepared B i MDN H:\PLN- DIR\SHAREDIGIS Projects \Census \Census Tracts:mxd L V Y V CITY OF CORPUS CHRISTI, TEXAS Census Tract 10 Printing Date: TuesdaaZy, June 23, 2009 "::\ m 2009 City of Corpus Christi, Texas Source: Department of Development Services' �� \ \ Prepared By: MDN File: H: \PLN- DIR\SHARED \GIS Projects \Census \Census Traas.mxd CITY OF CORPUS CHRISTI, TEXAS Census Tract 15 IG eU Ci _. Printing Date: Tuesday, June 23, 2009k vv ® 2009 City,ot Corpus Chris0, Texas/. Source: Department of Development ServIces V Prepared By: MDN File: H:\PLN- DIR\SHARED \GIS Projects \Census \Census Tracts.mxd / / / / CITY OF CORPUS CHRISTI, TEXAS Census Tract 16.01 HUR.N HU:ON ARMEN NAVAJO MORGA ITURBIDE 6 ZARAGOS GLORIA AGARITO EASTERN N -225- S _Q P 4Printing Date: Tuesday, y June 23, 2009 Pi 02009 City of Corpus Christi, Texas Source: Department of Development Services itt/ yam Prepared By: MDN File: H: \PLN -DIR \SHARED \GIS Projects \Census \fens sT` s. ,xd B] / / C 13 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: June 30, 2009 AGENDA ITEM: Ordinance authorizing the issuance of "City of Corpus Christi, Texas, Combination Tax and Limited Revenue Certificates of Obligation, Series 2009" in an amount not to exceed $8,500,000 for the purpose of financing costs associated with making permanent public improvements to Holly Road, Bayfront Development Implementation Plan Phase I (Shoreline Realignment Phase 1), and the Rodd Field Public Improvement District; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the City and further securing said certificates by a lien on and pledge of the pledged revenues of the Solid Waste System; providing the terms and conditions of said certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates, including the approval and distribution of an official statement; authorizing the execution of a paying agent/registrar agreement and a purchase contract; complying with the requirements of the letter of representatives with the depository trust company; delegating the authority to the Mayor and certain members of the City staff to execute certain documents relating to the sale of the Certificates; enacting other provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. ISSUE: The City of Corpus Christi is planning on issuing up to $8,500,000 in City of Corpus Christi, Texas Combination Tax and Revenue Certificates of Obligation to fund costs associated with Holly Road street improvements; to fund four additive alternates to the Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase I); and to fund the City's costs associated with the Rodd Field Public Improvement District. Prior to the issuance of the certificates of obligation, the City is required to publish notice of its intentions in a newspaper of general circulation in the City. The Notice of Intent was published in the Corpus Christi Caller -Times on Sunday, May 31, 2009 and on Sunday, June 7, 2009. If approved, this ordinance would delegate to the Mayor, City Manager, and Interim Assistant City Manager for Administrative Services the authority to effect the sale of the certificates of obligation when the timing of the market warrants, subject to specific parameters. REQUIRED COUNCIL ACTION: Approval of the ordinance is required. PREVIOUS COUNCIL ACTION: • May 26, 2009 - Resolution #028186 directing publication of notice of intention to issue Combination Tax and Revenue Certificates of Obligation in an amount up to $8,500,000. • May 26, 2009 - Motion #2009 -147 authorizing the appointment of Estrada Hinojosa & Company as Sole Underwriter; M. E. Allison as Financial Advisor; and Fulbright & Jaworski, LLP as Bond Counsel for the City of Corpus Christi, Texas Combination Tax and Revenue Certificates of Obligation, Series 2009. • May 12, 2009 - Resolution #028168 expressing official intent to reimburse costs associated with Holly Road Street Improvements. • August 19, 2008 - Resolution #027812 expressing official intent to reimburse costs of Corpus Christi Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase 1). • February 19, 2008 - Resolution #027579 expressing official intent to reimburse costs of Rodd Field Public Improvement District Infrastructure Improvements. CONCLUSION AND RECOMMENDATION: City Staff recommends that the City Council approve the Ordinance authorizing the parameter sale of the above noted certificates of obligation. Attachments: Constance P. Sanchez Background Interim Director of Financial Services Timeline constancep @cctexas.com Draft Ordinance (361) 826 -3227 Bond Purchase Agreement Preliminary Official Statement -229- BACKGROUND INFORMATION The City of Corpus Christi is planning on issuing up to $8,500,000 in City of Corpus Christi, Texas Combination Tax and Revenue Certificates of Obligation to fund costs associated with Holly Road street improvements ($3,000,000); to fund four additive alternates to the Bayfront Development Implementation Plan Phase I (Shoreline Realignment Phase 1- $2,938,748); and to fund the City's costs associated with the Rodd Field Public Improvement District ($1,132,099). Prior to the issuance of the certificates of obligation, the City is required to publish notice of its intentions in a newspaper of general circulation in the City. The Notice of Intent was published in the Corpus Christi Caller -Times on Sunday, May 31, 2009 and on Sunday, June 7, 2009. Attached is a preliminary timetable for the issuance of these certificates of obligation. The Certificates of Obligation Act stipulates that certificates of obligation can be sold for cash only in certain circumstances - such as to address a public emergency or if the certificates of obligation are benefitted by a revenue pledge. As a result, issuers who do not fall under these categories are required to pledge as additional security for their certificates of obligation, some type of revenue stream that is authorized to be pledged under the law. This pledge oftentimes takes the form of a limited amount ($1,000) that the Texas Attorney General accepts as satisfying this revenue pledge requirement. The alternative to not pledging a revenue source and selling the certificates of obligation for cash would be to exchange the certificates of obligation directly with the provider of the goods or services — which would be prohibitively cumbersome. Because of this requirement in the Certificates of Obligation Act and under advisement of bond counsel and the City's financial advisor, the City of Corpus Christi is proposing to pledge $1,000 of Solid Waste revenue to these certificates of obligation. By doing so, the legal requirements of the Certificates of Obligation Act will be satisfied - with a nominal effect to the Solid Waste System. Because of the fluctuating conditions in the municipal bond market, our financial advisor has recommended that the City Council delegate to the Mayor, City Manager, and Interim Assistant City Manager for Administrative Services (the "Delegated Officials ") the authority to effect the sale of the general improvement bonds subject to the following parameters: (1) the principal amount of the general improvement bonds may not exceed $8,500,000; (2) none of the general improvement bonds shall bear interest at a rate greater than 7% per year, (3) the highest interest rate on any general improvement bond shall not exceed the lowest interest rate on the general improvement bond by more than 4 %, and (4) the general improvement bonds must have a rating issued by a nationally recognized municipal securities ratings organization in one of the four highest rating categories. The City's bond counsel has confirmed that the City can delegate the sale of the certificates of obligation to the Delegated Officials in the manner outlined above pursuant to the authority contained in Chapter 1371, as amended, Texas Government Code. —230— City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2009 Tuesday, May 26, 2009 Timeline of Events Council Meeting Approve Financing Team Approve Publication of Notice of Intention Sunday, May 31, 2009 First Publication of Notice of Intention Sunday, June 7, 2009 Second Publication of Notice of Intention Tuesday, June 30, 2009 Council Meeting Approve Parameter Documents Thursday, July 23, 2009 Price Certificates Wednesday, August 19, 2009 Pre- Closing Thursday, August 20, 2009 Closing —231— FINAL AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2009" IN AN AMOUNT NOT TO EXCEED $8,500,000 FOR THE PURPOSE OF FINANCING COSTS ASSOCIATED WITH MAKING PERMANENT PUBLIC IMPROVEMENTS TO HOLLY ROAD, BAYFRONT DEVELOPMENT IMPLEMENTATION PLAN PHASE 1 (SHORELINE REALIGNMENT PHASE 1), AND THE RODD HELD PUBLIC IMPROVEMENT' DISTRICT; PROVIDING FOR THE PAYMENT OF SAID CERTIFICATES BY THE LEVY OF AN AD VALOREM TAX UPON ALL TAXABLE PROPERTY WITHIN THE CITY AND FURTHER SECURING SAID CERTIFICATES BY A LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF THE SOLID WASTE SYSTEM; PROVIDING THE TERMS AND CONDITIONS OF SAID CERTIFICATES AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND DELIVERY OF SAID CERTIFICATES, INCLUDING THE APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND A PURCHASE CONTRACT; COMPLYING WITH THE REQUIREMENTS OF THE LETTER OF REPRESENTATIONS WITH THE DEPOSITORY TRUST COMPANY; DELEGATING THE AUTHORITY TO THE MAYOR AND CERTAIN MEMBERS OF THE CITY STAFF TO EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF THE CERTIFICATES; ENACTING OTHER PROVISIONS INCIDENT AND RELATED TO THE SUBJECT AND PURPOSE OF THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Corpus Christi, Texas (the City) has caused notice to be given of its intention to issue certificates of obligation in the maximum principal amount of $8,500,000 for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to -wit: (1) constructing street, curb, gutters, and sidewalk improvements (including utilities repair, replacement and relocation) and drainage incidental thereto relating to Holly Road and the Rodd Field Public Improvement District; (2) acquiring, purchasing, constructing, renovating, enlarging, and improving Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase 1); (3) purchasing materials, supplies, equipment, land, and rights -of -way for authorized needs and purposes relating to the aforementioned capital infrastructure improvements, and (4) the payment of professional services related to the construction, design, and financing of the aforementioned projects. This notice has been duly published in a newspaper hereby found and determined to be of general circulation in the City, once a week for two (2) consecutive weeks, the date of the first publication of such notice being not less than 85109737.4 -232- thirty (30) days prior to the tentative date stated therein for the passage of the ordinance authorizing the issuance of such certificates of obligation; and WHEREAS, no petition protesting the issuance of the certificates of obligation described in this notice, signed by at least 5% of the qualified electors of the City, has been presented to or filed with the City Secretary prior to the date tentatively set in such notice for the passage of this ordinance; and WHEREAS, the City Council hereby finds and determines that certificates of obligation in the principal amount of $8,500,000 described in such notice should be issued and sold at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. A. Authorization - Designation - Principal Amount - Purpose. The certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of EIGHT MILLION FIVE HUNDRED THOUSAND AND NO /100 DOLLARS ($8,500,000), to be designated and bear the title of "CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2009" (the Certificates), for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to -wit: (1) constructing street, curb, gutters, and sidewalk improvements (including utilities repair, replacement and relocation) and drainage incidental thereto relating to Holly Road and the Rodd Field Public Improvement District; (2) acquiring, purchasing, constructing, renovating, enlarging, and improving Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase 1); (3) purchasing materials, supplies, equipment, land, and rights -of -way for authorized needs and purposes relating to the aforementioned capital infrastructure improvements, and (4) the payment of professional services related to the construction, design, and financing of the aforementioned projects, pursuant to the authority conferred by and in conformity with the laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code Section 271.041 through Section 271.065, Section 363.135, as amended, Texas Health and Safety Code, and the City's Home Rule Charter. B. Delegation of Authority to Authorized Representatives. As authorized by Chapter 1371, as amended, Texas Government Code (Chapter 1371) the Mayor of the City, the City Manager of the City, and the Interim Assistant City Manager for Administrative Services (each of the foregoing, individually, an "Authorized Representative ") are hereby authorized, appointed, and designated as the officers of the City authorized to individually act on behalf of the City in selling and delivering the Certificates authorized herein and carrying out the procedures specified in this Ordinance, including approval of the aggregate principal amount of each maturity of the Certificates, the redemption provisions therefor, and the rate of interest to be borne on the principal amount of each such maturity. Each Authorized Representative, acting for and on behalf of the City, is authorized to execute the Approval Certificate attached hereto as Schedule I. The Certificates shall be issued in the principal amount not to exceed $8,500,000; the maximum maturity of the Certificates will be March 1, _; and the net effective per annum 85109737.4 -2- -233- interest rate shall not exceed a rate greater than 7% per annum calculated in a manner consistent with the provisions of Chapter 1204, as amended, Texas Government Code. Lastly, each Authorized Representative is authorized to select the bond insurer, if any, with respect to the Certificates. The execution of the Approval Certificate shall evidence the sale date of the Certificates by the City to the Purchasers (hereinafter defined) in accordance with the provisions of Chapter 1371. It is further provided, however, that notwithstanding the foregoing provisions, the Certificates shall not be delivered unless prior to their initial delivery, the Certificates have been rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long term obligations, as required by Chapter 1371. Upon execution of the Approval Certificate, Bond Counsel is authorized to complete this Ordinance to reflect such final terms. SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated Maturities - Interest Rates - Certificate Date. The Certificates are issuable in fully registered form only; shall be dated August 1, 2009 (the Certificate Date) and shall be in denominations of $5,000 or any integral multiple thereof, and the Certificates shall become due and payable on March 1 in each of the years and in principal amount (the Stated Maturities) and bear interest on the unpaid principal amounts from the Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rates, while Outstanding, in accordance with the following schedule: 85109737.4 Years of Principal Interest Stated Maturity Amounts ($) Rates ( %) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 -3- —234— Years of Principal Interest Stated Maturity Amounts ($) Rates ( %) 2029 2030 SECTION 3. Payment of Certificates - Paving Agent/Registrar. The principal of, premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, and such payment of principal of and interest on the Certificates shall be without exchange or collection charges to the Holder (as hereinafter defined) of the Certificates. The Certificates shall bear interest at the per annum rates shown above in Section 2, computed on the basis of a 360 -day year of twelve 30 -day months, and interest thereon shall be payable semiannually on March 1 and September 1 of each year (the Interest Payment Date) commencing March 1, 2010, while the Certificates are Outstanding. The selection and appointment of The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, to serve as the initial Paying Agent/Registrar for the Certificates is hereby approved and confirmed, and the City agrees and covenants to cause to be kept and maintained at the corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for the registration, payment and transfer of the Certificates, all as provided herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially fmal form, as Exhibit A hereto, and such reasonable rules and regulations as the Paying Agent/Registrar and City may prescribe. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Certificates are Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking institution or (ii) an association or a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state authority and authorized by law to serve as a Paying Agent/Registrar. The City reserves the right to appoint a successor Paying Agent/Registrar upon providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance terminating such agency. Additionally, the City agrees to promptly cause a written notice of this substitution to be sent to each Holder of the Certificates by United States mail, first-class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Both principal of, premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the Certificates appearing on the Security Register (the Holder or Holders) maintained on behalf of the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (hereinafter defined) for purposes of payment of interest thereon, and (ii) on the date of surrender of the Certificates for purposes of receiving payment of principal thereof upon redemption of the Certificates or at the Certificates' Stated Maturity. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Certificate for 85109737.4 -4- —235— purposes of receiving payment and all other purposes whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of and premium, if any, on the Certificates shall be payable only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its corporate trust office. Interest on the Certificates shall be paid to the Holder whose name appears in the Security Register at the close of business on the fifteenth day of the month next preceding an Interest Payment Date for the Certificates (the Record Date) and shall be paid (1) by check sent by United States mail, first -class postage prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the Holder at the Holder's risk and expense. If the date for the payment of the principal of, premium, if any, or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a day. The payment on such date shall have the same force and effect as if made on the original date any such payment on the Certificates was due. In the event of a non - payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4. Redemption. A. Mandatory Redemption. The Certificates stated to mature on March 1, and March 1, are referred to herein as the "Term Certificates ". The Term Certificates are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on March 1 in each of the years as set forth below: Term Certificates Stated to Mature on March 1, Term Certificates Stated to Mature on March 1, Principal Principal Year Amount ($) Year Amount ($) 85109737.4 -5- -236- *Payable at Stated Maturity. The principal amount of a Term Certificate required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Certificates of such Stated Maturity which, at least 50 days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. B. Optional Redemption. The Certificates having Stated Maturities on and after March 1, _ shall be subject to redemption prior to Stated Maturity, at the option of the City, on March 1, or on any date thereafter, as a whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption. C. Exercise of Redemption Option. At least forty -five (45) days prior to a date set for the redemption of Certificates (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Certificates, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the City to exercise the right to redeem Certificates shall be entered in the minutes of the governing body of the City. D. Selection of Certificates for Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall select at random and by lot the Certificates to be redeemed, provided that if less than the entire principal amount of a Certificate is to be redeemed, the Paying Agent/Registrar shall treat such Certificate then subject to redemption as representing the number of Certificates Outstanding which is obtained by dividing the principal amount of such Certificate by $5,000. E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Certificates, a notice of redemption shall be sent by United States mail, first -class postage prepaid, in the name of the City and at the City's expense, by the Paying Agent/Registrar to each Holder of a Certificate to be redeemed, in whole or in part, at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the 85109737.4 -6- —237— portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. This notice may also be published once in a financial publication, journal, or reporter of general circulation among securities dealers in the City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter). Additionally, this notice may also be sent by the City to any registered securities depository and to any national information service that disseminates redemption notices. If a Certificate is subject by its terms to redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Certificate (or the principal amount thereof to be redeemed) so called for redemption shall become due and payable, and if money sufficient for the payment of such Certificates (or of the principal amount thereof to be redeemed) at the then applicable redemption price is held for the purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated in such notice, interest on said Certificates (or the principal amount thereof to be redeemed) called for redemption shall cease to accrue and such Certificates shall not be deemed to be Outstanding in accordance with the provisions of this Ordinance. F. Transfer/Exchange of Certificates. Neither the City nor the Paying Agent/Registrar shall be required (1) to transfer or exchange any Certificate during a period beginning forty -five (45) days prior to the date fixed for redemption of the Certificates or (2) to transfer or exchange any Certificate selected for redemption, provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a Certificate which is subject to redemption in part. SECTION 5. Execution - Registration. The Certificates shall be executed on behalf of the City by its Mayor under its seal reproduced or impressed thereon and attested by its City Secretary. The signature of either of said officers on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who were, at the time of the Certificate Date, the proper officers of the City shall bind the City, notwithstanding that such individuals or either of them shall cease to hold such offices prior to the delivery of the Certificates to the Purchasers, all as authorized and provided in Chapter 1201, as amended, Texas Government Code. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of registration substantially in the form provided in Section 8C, executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate of registration substantially in the form provided in Section 8D, executed by the Paying Agent/Registrar by manual signature, and either such certificate upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified or registered and delivered. 85109737.4 -7- —238— SECTION 6. Registration - Transfer - Exchange of Certificates - Predecessor Certificates. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of every owner of the Certificates, or if appropriate, the nominee thereof. Any Certificate may, in accordance with its terms and the terms hereof, be transferred or exchanged for Certificates of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of any Certificate at the corporate trust office of the Paying Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Certificates of authorized denomination and having the same Stated Maturity and of a like interest rate and aggregate principal amount as the Certificate or Certificates surrendered for transfer. At the option of the Holder, Certificates may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Certificates surrendered for exchange upon surrender of the Certificates to be exchanged at the corporate trust office of the Paying Agent/Registrar. Whenever any Certificates are so surrendered for exchange, the City shall execute, and the Paying Agent/Registrar shall register and deliver, the Certificates to the Holder requesting the exchange. All Certificates issued upon any transfer or exchange of Certificates shall be delivered at the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered upon such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be Predecessor Certificates, evidencing all or a portion, as the case may be, of the same debt evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term Predecessor Certificates shall include any Certificate registered and delivered pursuant to Section 25 in lieu of a mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Certificate. SECTION 7. Initial Certificate(s). The Certificates herein authorized shall be issued initially either (i) as a single fully registered Certificate in the total principal amount of 85109737.4 -g- -239- $8,500,000 with principal installments to become due and payable as provided in Section 2 and numbered T -1, or (ii) as one (1) fully registered Certificate for each year of Stated Maturity in the applicable principal amount and denomination and to be numbered consecutively from T -1 and upward (the Initial Certificate(s)) and, in either case, the Initial Certificate(s) shall be registered in the name of the Purchasers or the designee thereof. The Initial Certificate(s) shall be the Certificates submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the Purchasers. Any time after the delivery of the Initial Certificate(s), the Paying Agent/Registrar shall cancel the Initial Certificate(s) delivered hereunder and exchange therefor definitive Certificates of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the Purchasers, or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8. Forms. A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Certificates shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including insurance legends in the event the Certificates, or any Stated Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an opinion of counsel) thereon as may, consistent herewith, be established by the City or determined by the officers executing the Certificates as evidenced by their execution thereof. Any portion of the text of any Certificate may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Certificate. The definitive Certificates shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Certificates as evidenced by their execution thereof, but the Initial Certificate(s) submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. 85109737.4 [The remainder of this page intentionally left blank] -9- —240— B. Form of Definitive Certificate. REGISTERED REGISTERED PRINCIPAL AMOUNT NO. $ United States of America State of Texas Counties of Nueces and San Patricio CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATE OF OBLIGATION, SERIES 2009 Certificate Date: Interest Rate: Stated Maturity: August 1, 2009 REGISTERED OWNER: PRINCIPAL AMOUNT: CUSIP No. The City of Corpus Christi, Texas (the City), a body corporate and municipal corporation in the Counties of Nueces and San Patricio, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the Certificate Date, or from the most recent interest payment date to which interest has been paid or duly provided for until such principal sum has become due and payment thereof has been made or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day year of twelve 30 -day months; such interest being payable on March 1 and September 1 of each year commencing March 1, 2010. Principal of this Certificate shall be payable to the Registered Owner hereof (the Holder), upon presentation and surrender, at the corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon or a successor thereof. Interest shall be payable to the Holder of this Certificate (or one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each interest payment date. All payments of principal of and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first -class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder's risk and expense. 85109737.4 -10- —241— This Certificate is one of the series specified in its title issued in the aggregate principal amount of $8,500,000 (the Certificates) pursuant to an Ordinance adopted by the governing body of the City (the Ordinance), for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to -wit: (1) constructing street, curb, gutters, and sidewalk improvements (including utilities repair, replacement and relocation) and drainage incidental thereto relating to Holly Road and the Rodd Field Public Improvement District; (2) acquiring, purchasing, constructing, renovating, enlarging, and improving Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase 1); (3) purchasing materials, supplies, equipment, land, and rights -of -way for authorized needs and purposes relating to the aforementioned capital infrastructure improvements, and (4) the payment of professional services related to the construction, design, and financing of the aforementioned projects, under and in strict conformity with the laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section 271.041 through 271.065, Section 363.135, as amended, Texas Health and Safety Code, and the City's Home Rule Charter. The Certificates stated to mature on March 1, and March 1, are referred to herein as the "Term Certificates ". The Term Certificates are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on March 1 in each of the years as set forth below: Term Certificates Stated to Mature on March 1, Term Certificates Stated to Mature on March 1, Principal Principal Year Amount ($) Year Amount ($) *Payable at Stated Maturity. The principal amount of a Term Certificate required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Certificates of such Stated Maturity which, at least 50 days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. The Certificates stated to mature on and after March 1, may be redeemed prior to their Stated Maturities, at the option of the City, on March 1, _, or on any date thereafter, in whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar) at the redemption 85109737.4 —242— price of par plus accrued interest to the date of redemption; provided, however, that at least thirty (30) days prior written notice shall be sent to the Holder of the Certificates to be redeemed by United States mail, first -class postage prepaid, and subject to the terms and provisions relating thereto contained in the Ordinance. If this Certificate is subject to redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender of this Certificate to the Paying Agent/Registrar at its corporate trust office, a new Certificate or Certificates of like Stated Maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. If this Certificate (or any portion of the principal sum hereof) shall have been duly called for redemption and notice of such redemption has been duly given, then upon such redemption date this Certificate (or the portion of the principal sum hereof to be redeemed) shall become due and payable, and, if the money for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption is held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon from and after the redemption date on the principal amount hereof to be redeemed. If this Certificate is called for redemption, in whole or in part, the City or the Paying Agent/Registrar shall not be required to issue, transfer, or exchange this Certificate within forty-five (45) days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its redemption in part. The Certificates of this series are payable from the proceeds of an ad valorem tax levied upon all taxable property within the City, within the limitations prescribed by law, and are further payable from and secured by a lien on and pledge of the Pledged Revenues (identified and defined in the Ordinance), being a limited amount of the Net Revenues derived from the operation of the City's solid waste management system (the System), such lien on and pledge of the limited amount of Net Revenues being subordinate and inferior to the .lien on and pledge of such Net Revenues securing payment of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City. In the Ordinance, the City reserves and retains the right to issue Prior Lien Obligations, Junior Lien Obligations, Additional Subordinate Lien Obligations, and Additional Limited Pledge Obligations (all as identified and defined in the Ordinance), while the Certificates are Outstanding, without limitation as to principal amount but subject to any terms, conditions or restrictions as may be applicable thereto under law or otherwise. Reference is hereby made to the Ordinance, a copy of which is on file in the corporate trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his acceptance hereof hereby assents, for defmitions of terms; the description of and the nature and extent of the tax levied and the revenues pledged for the payment of the Certificates; the terms and conditions under which the City may issue Prior Lien Obligations, Junior Lien Obligations, Additional Subordinate Lien Obligations, and Additional Limited Pledge Obligations; the terms and conditions relating to the transfer or exchange of the Certificates; the conditions upon which 85109737.4 -12- -243- the Ordinance may be amended or supplemented with or without the consent of the Holder; the rights, duties, and obligations of' the City and the Paying Agent/Registrar; the terms and provisions upon which this Certificate may be redeemed or discharged at or prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Certificate as the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of either, shall be affected by notice to the contrary. In the event of a non - payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, covenanted, and represented that all acts, conditions, and things required to be performed, exist, and be done precedent to the issuance of this Certificate in order to render the same a legal, valid, and binding obligation of the City have been performed, exist, and have been done, in regular and due time, form, and manner, as required by law, and that issuance of the Certificates does not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of, premium if any, and interest on the Certificates by the levy of a tax as aforestated. In case any provision in this Certificate or any application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. 85109737.4 [The remainder of this page intentionally left blank] -13- —244— IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed under its official seal. ATTEST: City Secretary (CITY SEAL) 85109737.4 CITY OF CORPUS CHRISTI, TEXAS By Mayor [The remainder of this page intentionally left blank] -14- —245— C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Certificate(s) Only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS § REGISTER NO. THE STATE OF TEXAS § I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Not to appear on printed Certificates. D. Form of Certificate of Paying Agent/Registrar to Appear on Definitive Certificates Only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate has been duly issued under the provisions of the within - mentioned Ordinance; the Certificate or Certificates of the above - entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registered this date: The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, as Paying Agent/Registrar By: Authorized Signature *NOTE TO PRINTER: Print on Definitive Certificates. 85109737A -15- —246— E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee): (Social Security or other identifying number): the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular. Signature guaranteed: F. The Initial Certificate(s) shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Certificate shall be modified as follows: (i) immediately under the name of the Certificate(s) the headings "Interest Rate and "Stated Maturity shall both be completed "as shown below "; (ii) the first two paragraphs shall read as follows: Registered Owner: Principal Amount: The City of Corpus Christi, Texas (the City), a body corporate and municipal corporation in the Counties of Nueces and San Patricio, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above stated to mature on the first day of March in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: 85109737.4 -16- —247— Years of Principal Interest Stated Maturity Amounts ($) Rates ( %) (Information to be inserted from schedule in Section 2 hereof) (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amounts hereof from the Certificate Date, or from the most recent interest payment date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, while Outstanding, at the per annum rates of interest specified above, computed on the basis of a 360 -day year of twelve 30 -day months; such interest being payable on March 1 and September 1 of each year, commencing March 1, 2010. Principal of this Certificate shall be payable to the Registered Owner hereof (the Holder), upon its presentation and surrender, at the corporate trust office of The Bank of New York Mellon Trust Company, National Association, Dallas, Texas (the Paying Agent /Registrar). Interest shall be payable to the Holder of this Certificate whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each interest payment date. All payments of principal of and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first -class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof. G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers for the Certificates, the Definitive Certificates and the Initial Certificate(s) shall bear an appropriate legend as provided by the insurer. SECTION 9. Definitions. For all purposes of this Ordinance (as defined below), except as otherwise expressly provided or unless the context otherwise requires: the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Sections 27 and 44 of this Ordinance have the meanings assigned to them in Sections 27 and 44 of this Ordinance, and all such terms, include the plural as well as the singular; (ii) all references in this Ordinance to designated "Sections" and other subdivisions are to the designated Sections and other subdivisions of this Ordinance as originally adopted; and (iii) the words "herein ", "hereof', and "hereunder" and other words of similar import refer to this Ordinance as a whole and not to any particular Section or other subdivision. A. The term Additional Limited Pledge Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the City payable wholly or in part from a pledge of and lien on Net Revenues of the System which pledge of revenues is limited as further provided in Section 20 of this Ordinance, and (ii) any obligations issued to refund the foregoing as determined by the City Council in accordance with any applicable law. 85109737.4 -17- -248- B. The term Additional Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the City payable wholly or in part from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. C. The term Authorized Officials shall mean the Mayor, City Manager, Interim Assistant City Manager for Administrative Services, and/or the City Secretary. D. The term Certificates shall mean the $8,500,000 "CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2008" authorized by this Ordinance. E. The term Certificate Fund shall mean the special Fund created and established by the provisions of Section 10 of this Ordinance. F. The term City shall mean the City of Corpus Christi, located in Nueces and San Patricio Counties, Texas and, where appropriate, the City Council of the City. G. The term Closing Date shall mean the date of physical delivery of the Initial Certificates in exchange for the payment of the agreed purchase price for the Certificates. H. The term Collection Date shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. I. The term Debt Service Requirement shall mean, as of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the City as of such date or in such period for the payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear interest at the maximum rate permitted by the terms thereof and further assuming in the case of obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the mandatory redemption provisions applicable thereto. J. The term Depository shall mean an official depository bank of the City. K. The term Fiscal Year shall mean the annual financial accounting period for the System now ending on July 1st of each year; provided, however, the City Council may change such annual financial accounting period to end on another date if such change is found and determined to be necessary for accounting purposes or is required by applicable law. L. The term Government Securities, as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America; (ii) noncallable obligations of an agency or instrumentality of the 85109737.4 -18- -249- United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; or (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. M. The term Gross Revenues for any period shall mean all income and revenues received by the City by virtue of its ownership and operation of the System, including, but not limited to, its rentals, fees, and other revenues resulting from the ownership of the System, including rentals received from leasing all or part of the System. However, it is expressly recognized that any such lease must comply with the requirements of the Code and existing regulations, published rulings, and court decisions. N. The term Holder or Holders shall mean the registered owner, whose name appears in the Security Register, for any Certificate. 0. The term Interest Payment Date shall mean the date semiannual interest is payable on the Certificates, being March 1 and September 1 of each year, commencing March 1, 2009, while any of the Certificates remain Outstanding. P. The term Junior Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a junior and inferior lien on and pledge of the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a junior and inferior lien on and pledge of' the Net Revenues as determined by the City Council in accordance with any applicable law. Q. The term Maintenance and Operating Expenses shall mean the expenses of operation and maintenance, including all salaries, labor, materials, repairs and extensions necessary to maintain and operate the System; provided, however, that only such repairs and extensions as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the System in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical action or condition which would otherwise impair the security of any bonds or other obligations payable from and secured, in whole or in part, by a lien on the Net Revenues derived from the ownership and operation of the System shall be deducted in determining Net Revenues. R. The term Net Revenues for any period shall mean the Gross Revenues of the System less the Maintenance and Operating Expenses of the System. S. The term Ordinance shall mean this ordinance as filially passed and adopted by the City Council of the City. 85109737.4 -19- -250- T. The term Outstanding when used in this Ordinance with respect to Certificates shall mean, as of the date of determination, all Certificates issued and delivered under this Ordinance, except: (1) those Certificates canceled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 29 of this Ordinance; and (3) those Certificates that have been mutilated, destroyed, lost, or stolen and replacement Certificates have been registered and delivered in lieu thereof as provided in Section 25 of this Ordinance. U. The term Pledged Revenues shall mean, while the Certificates remain Outstanding, an amount of Net Revenues not in excess of $1,000. The Pledged Revenues shall be deposited, allocated, and expended in accordance with Section 10 of this Ordinance. V. The term Pledged Revenue Amount shall mean the total amount, not to exceed $1,000 while the Certificates are Outstanding, of Net Revenues that may be transferred in whole or in part by the City in any given Fiscal Year (however, any amounts transferred prior to the final maturity date of the Certificates may not exceed the total amount of $1,000) to the Certificate Fund. W. The term Prior Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a prior and first lien on and pledge of the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and (ii) any obligations issued to refund the foregoing that are payable from and secured by a prior and first lien on and pledge of the Net Revenues of the System as determined by the City Council in accordance with any applicable law. X. The term Purchasers shall mean the initial purchaser or purchasers of the Certificates named in Section 26 of this Ordinance. Y. The term Stated Maturity shall mean the annual principal payments of the Certificates payable on March 1 of each year the Certificates are Outstanding as set forth in Section 2 of this Ordinance. Z. The term Subordinate Lien Obligations shall mean (i) the outstanding and unpaid obligations of the City that are payable, in part, from and secured by a subordinate and inferior lien on and pledge of the Net Revenues of the System and designated as follows: (1) "City of Corpus Christi, Texas Combination Tax and Revenue Certificates of Obligation, Series 2000 ", dated September 1, 2000, in the original principal amount of $13,870,000; 85109737.4 -20- -251- (2) "City of Corpus Christi, Texas Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2004," dated July 1, 2004, in the original principal amount of $6,845,000; (3) "City of Corpus Christi, Texas Revenue Certificates of Obligation, Series 2005 (Landfill Project)", dated June 1, 2005, in the original principal amount of $14,520,000; (4) "City of Corpus Christi, Texas Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2006 ", dated May 1, 2006, in the original principal amount of $18,605,000; and (5) "City of Corpus Christi, Texas Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008 ", dated December 15, 2008, in the original principal amount of $12,000,000; and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. AA. The term System shall mean a plant, composting process plant, incinerator, sanitary landfill, transfer station, or other works and equipment that is acquired, installed, or operated to collect, handle, store, process, recover material or energy from, or dispose of solid waste, and includes sites for those works and equipment. SECTION 10. Certificate Fund - Investments. For the purpose of paying the interest on and to provide a sinking fund for the payment, redemption, and retirement of the Certificates, there shall be and is hereby created a special fund to be designated "COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2008, INTEREST AND SINKING FUND" (the Certificate Fund), which fund shall be kept and maintained at the Depository, and money deposited in such fund shall be used for no other purpose and shall be maintained as provided in Section 27. Authorized Officials of the City are hereby authorized and directed to make withdrawals from said fund sufficient to pay the principal of and interest on the Certificates as the same become due and payable and shall cause to be transferred to the Paying Agent/Registrar from money on deposit in the Certificate Fund an amount sufficient to pay the amount of principal and/or interest stated to mature on the Certificates, such transfer of funds to the Paying Agent/Registrar to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar on or before the last business day next preceding each interest and principal payment date for the Certificates. The City, at its sole discretion, may deposit the Pledged Revenue Amount to the Certificate Fund. The Pledged Revenue Amount, if deposited, shall be expended annually to pay principal of and interest on the Certificates as the same become due and payable. This Pledged Revenue Amount shall be accounted for and transferred to the Paying Agent/Registrar in accordance with the provisions of the previous paragraph of this Section. 85109737.4 -21- —252— Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund established by this Ordinance may, at the option of the City, be placed in time deposits, certificates of deposit, guaranteed investment contracts, or similar contractual agreements, as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, secured (to the extent not insured by the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, or be invested, as authorized by any law, including investments held in book -entry form, in securities, including, but not limited to, direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers Home Administration, Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from such fund will be available at the proper time or times. All interest and income derived from deposits and investments in any fund established pursuant to the provisions of this Ordinance shall be credited to, and any losses debited to, such fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. SECTION 11. Tax Levy. To provide for the payment of the Debt Service Requirements on the Certificates being (i) the interest on the Certificates and (ii) a sinking fund for their redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while the Certificates or any interest thereon shall remain Outstanding, a sufficient tax, within the limitations prescribed by law, on each one hundred dollars valuation of taxable property in the City, adequate to pay such Debt Service Requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the said Debt Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates shall be determined and accomplished in the following manner: A. Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the City Council shall determine: (1) the amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year; 85109737.4 _22_ -253- (2) the amount on deposit in the Certificate Fund after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Pledged Revenues, if any, to be appropriated and allocated during such year to pay such Debt Service Requirements, if any, prior to the Collection Date for the ad valorem taxes to be levied; and (3) the amount of Pledged Revenues, if any, appropriated and set aside for the payment of the Debt Service Requirements on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding Fiscal Year. B. The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (1) above less the sum total of the amounts established in paragraphs (2) and (3), after taking into consideration delinquencies and costs of collecting such annual taxes. SECTION 12. Pledge of Revenues. The City hereby covenants and agrees that, subject to (i) any prior lien on and pledge of the Net Revenues of the System to the payment and security of the currently outstanding Senior Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City and (ii) the lien and pledge to the payment and security of the Certificates, the Pledged Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates and the pledge of Pledged Revenues herein made for the payment of the Certificates shall constitute a lien on the Pledged Revenues in accordance with the terms and provisions hereof and be valid and binding without any physical delivery thereof or further act by the City. SECTION 13. Revenue Fund. The City hereby covenants and agrees that all Gross Revenues derived from the operation of the System shall be kept separate and apart from all other funds, accounts and money of the City and shall be deposited as collected into the "CITY OF CORPUS CHRISTI, TEXAS SOLID WASTE MANAGEMENT SYSTEM REVENUE FUND" (the Revenue Fund). All money deposited in the Revenue Fund shall be pledged and appropriated to the extent required for the following purposes and in the order of priority shown: • First: to the payment of the reasonable and proper Maintenance and Operating Expenses of the System required by statute or ordinances authorizing the issuance of any indebtedness of the City to be a first charge on and claim against the Gross Revenues of the System; • Second: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of any Prior Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance; • Third: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of any 85109737.4 -23- —254— Junior Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance; and • Fourth: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance; and • Fifth: To the payment of the amounts that may be deposited in the special funds and accounts established for the payment of the Certificates and any Additional Limited Pledge Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance. Any Net Revenues remaining in the System Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment, security and benefit thereof, may be appropriated and used for any other City purpose now or hereafter permitted by law. SECTION 14. Deposits to Certificate Fund — Surplus Certificate Proceeds. The City hereby covenants and agrees to cause to be deposited in the Certificate Fund prior to a principal and interest payment date for the Certificates, from the Pledged Revenues in the System Fund, after the deduction of all payments required to be made to the special funds or accounts created for the payment, security, and benefit of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City, any amounts budgeted to be paid therefrom in such Fiscal Year. Accrued interest received from the Purchasers of the Certificates shall be deposited to the Certificate Fund and ad valorem taxes levied and collected for the benefit of the Certificates shall be deposited to the Certificate Fund. In addition, any surplus proceeds, including investment income therefrom, from the sale of the Certificates not expended for authorized purposes shall be deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in said fund from ad valorem taxes. SECTION 15. Security of Funds. All money on deposit in the funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested as provided herein) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and money on deposit in such funds shall be used only for the purposes permitted by this Ordinance. SECTION 16. Maintenance of System - Insurance. The City covenants and agrees that while the Certificates remain Outstanding it will maintain and operate the System with all possible efficiency and maintain casualty and other insurance (including a system of self - insurance) on the properties of the System and its operations of a kind and in such amounts customarily carried by municipal corporations in the State of Texas engaged in a similar type of 85109737.4 -24- -255- business and that it will faithfully and punctually perform all duties with reference to the System required by the laws of the State of Texas. All money received from losses under such insurance policies, other than public liability policies, are held for the benefit of the holders of the Certificates until and unless the proceeds are paid out in making good the loss or damage in respect of which such proceeds are received, either by replacing the property destroyed or repairing the property damaged, and adequate provision for making good such loss or damage must be made within ninety (90) days after the date of loss. The payment of premiums for all insurance policies required under the provisions hereof shall be considered Maintenance and Operating Expenses. Nothing in this Ordinance shall be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System but nothing herein shall be construed as preventing the City from doing so. SECTION 17. Rates and Charges. The City hereby covenants and agrees with the Holders of the Certificates that rates and charges for solid waste collection services afforded by the System will be established and maintained to provide Gross Revenues sufficient at all times: A. to pay, together with any other lawfully available funds, all operating, maintenance, depreciation, replacement, betterment, and other costs incurred in the maintenance and operation of the System, including, but not limited to, Maintenance and Operating Expenses; B. to produce Net Revenues sufficient, together with any other lawfully available funds, to pay (i) the interest on and principal of any Prior Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof; (ii) the interest on and principal of any Junior Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof; (iii) the interest on and principal of the currently outstanding Subordinate Lien Obligations and any Additional Subordinate Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof; and (iv) the amounts that may be deposited in the special funds established for the payment of the Certificates or any Additional Limited Pledge Obligations hereafter issued by the City; and C. to pay other legally incurred indebtedness payable from the Net Revenues of the System and/or secured by a lien on the System or the Net Revenues thereof. SECTION 18. Records and Accounts - Annual Audit. The City further covenants and agrees that so long as any of the Certificates remain Outstanding it will keep and maintain separate and complete records and accounts pertaining to the operations of the System in which complete and correct entries shall be made of all transactions relating thereto, as provided by Chapter 363, as amended, Texas Health and Safety Code, or other applicable law. The Holders of the Certificates or any duly authorized agent or agents of the Holders shall have the right to inspect the System and all properties comprising the same. The City further agrees that, following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of Certified Public Accountants. Copies of each annual audit shall be furnished to the Executive Director of the Municipal Advisory Council of Texas at her office 85109737.4 -25- —256— in Austin, Texas, and, upon written request, to the Purchasers of the Certificates and any subsequent holder thereof. Expenses incurred in making the annual audit of the operations of the System are to be regarded as Maintenance and Operating Expenses. SECTION 19. Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Certificate Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of the Certificates shall be entitled to seek a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies herein provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. SECTION 20. Issuance of Prior Lien Obligations - Junior Lien Obligations - Additional Subordinate Lien Obligations - Additional Limited Pledge Obligations. The City hereby expressly reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien on the Net Revenues of the System with the following priorities, without limitation as to principal amount, but subject to any terms, conditions, or restrictions applicable thereto under existing ordinances, laws, or otherwise: A. Prior Lien Obligations payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System; B. Junior Lien Obligations payable from and equally and ratably secured by a lien on and pledge of the Net Revenues that is junior and inferior to the lien on and pledge thereof securing the payment of any Prior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing the payment of the currently outstanding Subordinate Lien Obligations and the Certificates and any Additional Subordinate Lien Obligations or Additional Limited Pledge Obligations hereafter issued by the City; and C. Additional Subordinate Lien Obligations payable from and equally and ratably secured by a lien on and pledge of the Net Revenues that is subordinate and inferior to the lien on and pledge thereof securing the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing the payment of the Certificates and any Additional Limited Pledge Obligations hereafter issued by the City; and 85109737.4 -26- —257— D. Additional Limited Pledge Obligations secured by a lien on and pledge of a limited amount of the Net Revenues in accordance with the provisions of the following paragraph. Prior Lien Obligations, Junior Lien Obligations, and Additional Subordinate Lien Obligations if issued, may be payable, in whole or in part, from Net Revenues (without impairment of the obligation of contract with the holders of the Certificates) upon such terms and conditions as the City Council may determine. Additional Limited Pledge Obligations, if issued and payable, in whole or in part, from Pledged Revenues (defined in the same or similar terms as provided in Section 9 of this Ordinance), shall not in any event be construed to be payable from the Pledged Revenues authorized by this Ordinance to be budgeted and appropriated for the payment of the Certificates. However, the lien on and pledge of the limited amount of Net Revenues securing, in part, the payment of any Additional Limited Pledge Obligations shall be subordinate and inferior to the pledge of and lien on the Net Revenues securing the payment of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City. SECTION 21. Special Covenants. The City hereby further covenants that: A. it has the lawful power to pledge the Pledged Revenues supporting the Certificates and has lawfully exercised said powers under the laws of the State of Texas, including power existing under Chapter 363, as amended, Texas Health and Safety Code, and the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section 271.041 through Section 271.065, and the City's Home Rule Charter; 13. other than for the payment of the currently outstanding Subordinate Lien obligations and the Certificates, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System; SECTION 22. Application of the Covenants and Agreements of the Subordinate Lien Obligations, Prior Lien Obligations, or Junior Lien Obligations. It is the intention of the City Council and accordingly hereby recognized and stipulated that the provisions, agreements, and covenants contained herein bearing upon the management and operations of the System, and the administration and application of Gross Revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements, and covenants contained in the ordinances authorizing the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City, and to the extent of any irreconcilable conflict between the provisions contained herein and in the ordinances authorizing the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance, especially the priority of rights and benefits conferred thereby to the holders of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued. It is expressly recognized that prior to the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations, the City must comply with each of the conditions precedent contained in the 85109737.4 _27_ -258- ordinances authorizing the issuance of the currently outstanding Subordinate Lien Obligations and the Certificates, as appropriate. SECTION 23. Notices to Holders - Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States mail, first -class postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 24. Cancellation. All Certificates surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Certificates held by the Paying Agent/Registrar shall be destroyed as directed by the City. SECTION 25. Mutilated, Destroyed, Lost, and Stolen Certificates. If (1) any mutilated Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Certificate, and (2) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate, a new Certificate of the same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number not contemporaneously outstanding. In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to become due and payable, the City in its discretion may, instead of issuing a new Certificate, pay such Certificate. Upon the issuance of any new Certificate or payment in lieu thereof, under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation thereto and any other expenses (including attorney's fees and the fees and expenses of the Paying Agent/Registrar) connected therewith. 85109737.4 -28- —259— Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Certificates. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Certificates. SECTION 26. Sale of the Certificates — Official Statement Approval — Approval of Purchase Contract - Use of Certificate Proceeds. The Certificates authorized by this Ordinance are hereby sold by the City to Estrada Hinojosa & Company, Inc., San Antonio, Texas (the Purchasers, having all the rights, benefits, and obligations of a Holder) in accordance with the provisions of a Purchase Contract, dated July _, 2009, attached hereto as Exhibit B and incorporated herein by reference as a part of this Ordinance for all purposes. The Initial Certificates shall be registered in the name of the Estrada Hinojosa & Company, Inc. The Mayor or Mayor Pro Tem is hereby authorized and directed to execute the Purchase Contract for and on behalf of the City and as the act and deed of the City Council, and in regard to the approval and execution of the Purchase Contract, the City Council hereby finds, determines and declares that the representations, warranties, and agreements of the City contained in the Purchase Contract are true and correct in all material respects and shall be honored by the City. Delivery of the Certificates to the Purchasers shall occur as soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance with the terms of the Purchase Contract. Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City's prior determination that the Preliminary Official Statement was, as of its date, "deemed final" in accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the Preliminary Official Statement by the Purchasers in connection with the public offering and sale of the Certificates. The final Official Statement, being a modification and amendment of the Preliminary Official Statement to reflect the terms of sale (together with such changes approved by an Authorized Representative), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute the final Official Statement, dated July 2009, in the reoffering, sale and delivery of the Certificates to the public. The Mayor and/or City Secretary are further authorized and directed to manually execute and deliver for and on behalf of the City copies of the Official Statement in final form as may be required by the Purchasers, and such final Official Statement in the form and content manually executed by said officials shall be deemed to be approved by the City Council and constitute the Official Statement authorized for distribution and use by the Purchasers. Proceeds from the sale of the Certificates shall be applied as follows: (1) Accrued interest (in the amount of $ ) received from the Purchasers shall be deposited into the Certificate Fund. The City received a net premium from the sale of the Certificates of $ which is hereby allocated by the City in the following manner: (1) $ to pay the Purchasers' compensation, and (2) $ shall be deposited into the Certificate Fund as the rounding amount. 85109737.4 -29- -260- (2) The balance of the proceeds derived from the sale of the Certificates, after making the deposits to the Certificate Fund as described in (1) above, shall be used to pay costs of issuance or deposited into the special construction account or accounts created for the projects to be constructed with the proceeds of the Certificates. This special construction account shall be established and maintained at the Depository and shall be invested in accordance with the provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the Certificates pending completion of construction of the projects financed with such proceeds shall be accounted for, maintained, deposited, and expended as permitted by the provisions of Chapter 1201, as amended, Texas Government Code, or as required by any other applicable law. Thereafter, such amounts shall be expended in accordance with Section 14 of this Ordinance. SECTION 27. Covenants to Maintain Tax- Exempt Status. A. Definitions. When used in this Section, the following terms have the following meanings: "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148 -1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148 -1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148 -1(c) of the Regulations, of the Certificates. "Investment" has the meaning set forth in Section 1.148 -1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and which is not acquired to carry out the governmental purposes of the Certificates. "Rebate Amount" has the meaning set forth in Section 1.148 -1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Certificates. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or fmal Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. 85109737.4 "Yield" of (1) any Investment has the meaning set forth in Section 1.148 -5 of the Regulations; and -30- -261- (2) the Certificates has the meaning set forth in Section 1.148 -4 of the Regulations. 13. Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Certificate to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Certificate, the City shall comply with each of the specific covenants in this Section. C. No Private Use or Private Payments. Except to the extent that it will not cause the Certificates to become "private activity bonds" within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Certificates: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Certificates, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Certificates or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. D. No Private Loan. Except as would not cause the Certificates to become "private activity bonds" within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if- (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take -or -pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. 85109737.4 -31- -262- E. Not to Invest at Higher Yield. Except as would not cause the Certificates to become "arbitrage bonds" within the meaning of section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Certificates directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed of, materially exceeds the Yield of the Certificates. F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Certificates to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. G. Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038 -G or such other form and in such place as the Secretary may prescribe. H. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(0 of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Certificate is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Certificates with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not Tess frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Certificates until six years after the final Computation Date. (3) As additional consideration for the purchase of the Certificates by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Certificate Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Certificates equals in the case of a Final Computation Date as defined in Section 1. 1483(e)(2) of the Regulations, one hundred percent (100 %) of the Rebate Amount on such date; and in the case of any other Computation Date, ninety percent (90 %) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(0 of the Code and the Regulations and rulings thereunder, and shall be accompanied 85109737.4 -32- -263- by Form 8038 -T or such other forms and information as is or may be required by Section 148(0 of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148 -3(h) of the Regulations. I. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Certificates, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection H of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Certificates not been relevant to either party. J. Certificates Not Hedge Bonds. (I) The City reasonably expects to spend at least 85% of the spendable proceeds of the Certificates within three years after such Certificates are issued. (2) Not more than 50% of the proceeds of the Certificates will be invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years or more. K. Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem, City Manager, City Secretary, or City Attorney, either or any combination of them, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Such elections shall be deemed to be made on the Closing Date. SECTION 28. Control and Custody of Certificates. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas and shall take and have charge and control of the Certificates pending their approval by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery of the Certificates to the Purchasers. Furthermore, the Mayor, Mayor Pro Tem, City Manager, City Secretary, or City Attorney, either or all, are hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the issuance of the Certificates, the approval of the Attorney General and their registration by the Comptroller of Public Accounts and, together with the City's financial advisor, bond counsel, and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Certificates to the Purchasers and the initial exchange thereof for definitive Certificates. 85109737.4 -33- -264- SECTION 29. Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if' any, and interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied and the lien on and pledge of the Pledged Revenues under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Certificates or the principal amount(s) thereof at Stated Maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay when due the principal of and interest on such Certificates, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of money or Government Securities will be made under this Section and no use made of any such deposit which would cause the Certificates to be treated as arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 27 hereof). Any money so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such money has been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity of the Certificates, or applicable redemption date, such money was deposited and is held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor, subject to the unclaimed property laws of the State of Texas. Notwithstanding any other provision of this Ordinance to the contrary,, it is hereby provided that any determination not to redeem defeased Certificates that is made in conjunction with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable, provided that: (I) in the proceedings providing for such defeasance, the City expressly reserves the right to call the defeased Certificates for redemption; (2) gives notice of the reservation of that right to the owners of the defeased Certificates immediately following the defeasance; (3) directs that notice of the reservation be included in any redemption notices that it authorizes; and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such defeased debt as though it was being defeased at the time of the exercise of the option to redeem the defeased Certificates, after taking the redemption into account in determining the sufficiency of the provisions made for the payment of the defeased Certificates. 85109737.4 -34- -265- SECTION 30. Printed Opinion. The Purchasers' obligation to accept delivery of the Certificates is subject to their being furnished a final opinion of Fulbright & Jaworski L.L.P., as Bond Counsel, approving certain legal matters as to the Certificates, said opinion to be dated and delivered as of the date of initial delivery and payment for such Certificates. Printing of a true and correct copy of said opinion on the reverse side of each of said Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary of the City is hereby approved and authorized. SECTION 31. CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Certificates shall be of no significance or effect as regards the legality thereof, and neither the City nor bond counsel are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates. SECTION 32. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 33. Ordinance a Contract, Amendments - Outstanding Certificates. The City acknowledges that the covenants and obligations of the City herein contained are a material inducement to the purchase of the Certificates. This Ordinance shall constitute a contract with the Holders from time to time, binding on the City and its successors and assigns, and it shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent of Holders holding a majority in aggregate principal amount of the Certificates then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of and interest on the Certificates, reduce the principal amount thereof or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, the redemption price therefor, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required for consent to any such amendment, addition, or rescission. SECTION 34. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, Bond Counsel, Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Paying Agent/Registrar, and the Holders. SECTION 35. Inconsistent Provisions. All ordinances and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters ordained herein. 85109737.4 -35- -266- SECTION 36. Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 37. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 38. Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 39. Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council of the City. SECTION 40. Authorization of Paying Agent/Registrar Agreement. The City Council of the City hereby finds and determines that it is in the best interest of the City to authorize the execution of a Paying Agent/Registrar Agreement concerning the payment, exchange, and transferability of the Certificates. A copy of the Paying Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by reference to the provisions of this Ordinance. SECTION 41. Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 42. Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal, or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. SECTION 43. No Recourse Against City Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Certificate or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Certificate. 85109737.4 -36- -267- SECTION 44. Continuing Disclosure Information. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: MSRB means the Municipal Securities Rulemaking Board. Rule means SEC Rule 15c2 -12, as amended from time to time. SEC means the United States Securities and Exchange Commission. B. Annual Reports. The City shall provide annually to the MSRB (1) within six months after the end of each fiscal year ending in or after 2009, financial information and operating data with respect to the City of the general type included in the final Official Statement authorized by Section 26 of this Ordinance, being the information described in Exhibit C hereto, and (2) if not provided as part such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit C hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (ii) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document available to the public on the MSRB's Internet Web site or filed with the SEC. C. Material Event Notices. The City shall notify the MSRB, in a timely manner, of any of the following events with respect to the Certificates, if such event is material within the meaning of the federal securities laws: (1) Principal and interest payment delinquencies; (2) Non - payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions or events affecting the tax- exempt status of the Certificates; 85109737.4 -37- —268— (7) Modifications to rights of holders of the Certificates; (8) Certificate calls; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Certificates; and (11) Rating changes. The City shall notify a the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. D. Filings with the MSRB. All financial information, operating data, financial statements, notices, and other documents provided to the MSRB in accordance with this Section shall be provided in an electronic format prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB. E. Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remain an "obligated person" with respect to the Certificates within the meaning of the Rule, except that the City in any event will give notice of any deposit that causes the Certificates to be no longer Outstanding. The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. 85109737.4 -38- —269— No default by the City in observing or performing their obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Certificates. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Certificates in the primary offering of the Certificates, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. SECTION 45. Book -Entry Only System. It is intended that the Certificates initially be registered so as to participate in a securities depository system (the DTC System) with the Depository Trust Company, New York, New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the Certificates shall be issued (following cancellation of the Initial Certificates described in Section 7) in the form of a separate single definitive Certificate. Upon issuance, the ownership of each such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the Outstanding Certificates shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit D (the Representation Letter). With respect to the Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any broker - dealer, bank, or other financial institution for which DTC holds the Certificates from time 85109737.4 -39- -270- to time as securities depository (a Depository Participant) or to any person on behalf of whom such a Depository Participant holds an interest in the Certificates (an Indirect Participant). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Certificates, (ii) the delivery to any Depository Participant or any other person, other than a registered owner of the Certificates, as shown on the Security Register, of any notice with respect to the Certificates, including any notice of redemption, or (iii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a Holder of a Certificate, of any amount with respect to principal of, premium, if any, or interest on the Certificates. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a Certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Certificates that they be able to obtain certificated Certificates, the City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the availability within a reasonable period of time through DTC of bond certificates, and the Certificates shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Certificates shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Certificates may be registered in whatever name or names the Holders of Certificates transferring or exchanging the Certificates shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Certificate and all notices with respect to such Certificate shall be made and given, respectively, in the manner provided in the Representation Letter. SECTION 46. Further Procedures. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial sale and delivery of the Certificates, the Paying Agent/Registrar Agreement, the Purchase Contract, and the Official Statement. In addition, prior to the initial delivery of the Certificates, the Authorized Representatives and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized 85109737.4 -40- -271- and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance and as described in the Official Statement, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas Attorney General's office. In case any officer of the City whose signature shall appear on any certificate shall cease to be such officer before the delivery of such certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 47. Effective Date. Pursuant to the provisions of Section 1201.028, as amended, Texas Government Code, this Ordinance shall be effective immediately upon adoption, notwithstanding any provision in the City's Home Rule Charter to the contrary concerning a multiple reading requirement for the adoption of ordinances. 85109737.4 [The remainder of this page intentionally left blank.] -41- —272— PASSED AND ADOPTED on the 30`s day of June, 2009. CITY OF CORPUS CHRISTI, TEXAS Mayor ATTEST: City Secretary APPROVED THIS DAY OF , 2009: Mary Kay Fischer, City Attorney (CITY SEAL) Schedule I — Approval Certificate EXHIBIT A - Paying Agent/Registrar Agreement EXHIBIT B — Purchase Contract EXHIBIT C - Description of Annual Financial Information EXHIBIT D - DTC Letter of Representations 85109737.4 S -1 -273- THE STATE OF TEXAS )( COUNTY OF NUECES )( I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 30th day of June, 2009, authorizing the issuance of the City's Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2009, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Texas Government Code, Chapter 551. EXECUTED UNDER MY HAND AND SEAL of said City, this the 30th day of June, 2009. 85109737.4 City Secretary (CITY SEAL) —274— 85109737.4 SCHEDULE I APPROVAL CERTIFICATE SEE TAB NO. Schedule I —275— 85109737.4 EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT SEE TAB NO. _ A -1 -276- 85109737.4 EXHIBIT B PURCHASE CONTRACT SEE TAB NO. _ B -1 -277- EXHIBIT C DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 44 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: (1) The City's audited financial statements for the most recently concluded fiscal year or to the extent these audited financial statements are not available, the portions of the unaudited financial statements of the City appended to the Official Statement as Appendix D, but for the most recently concluded fiscal year. (2) All quantitative financial information and operating data with respect to the City of the general type included in Appendix A to the Official Statement under the headings "DEBT PAYABLE FROM TAXES ", "GENERAL REVENUES ", "GENERAL EXPENSES ", "AD VALOREM TAXES ", "FIVE YEAR OPERATING STATEMENT FOR SOLID WASTE ", "MUNICIPAL HOTEL OCCUPANCY TAXES ", and "THE TAX INCREMENT FINANCING ACT", and in Appendix C. Accounting Principles The accounting principles referred to in such Section are generally accepted accounting principles for governmental units as prescribed by the Government Accounting Standards Board from time to time. 85109737.4 C -1 -278- 85109737.4 EXHIBIT D DTC LETTER OF REPRESENTATIONS SEE TAB NO. _ D -1 -279- BOND PURCHASE AGREEMENT RELATING TO $8,500,000 CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE CERTIFICATES OF OBLIGATION, SERIES 2009 July _, 2009 Mayor and Members of the City Council City of Corpus Christi, Texas 1201 Leopard Corpus Christi, Texas 78401 Ladies and Gentlemen: The undersigned firm of underwriters (the "Underwriters "), offer to enter into this Bond Purchase Agreement (this "Bond Purchase Agreement ") with the City of Corpus Christi, Texas (the "City" or the "Issuer ") which, upon your acceptance of this offer, will be binding upon the Issuer and the Underwriters. Terms not otherwise defined herein shall have the same meanings as set forth in the ordinance (the "Ordinance ") approved by the City Council of the Issuer (the "City Council ") on June 30, 2009, authorizing the issuance of the Obligations defined and described below. Simultaneously with the authorization of the Ordinance, the City Council of the Issuer delegated its authority, pursuant to Chapter 1371, as amended, Texas Government Code, to the Mayor, the City Manager, or the Interim Assistant City Manager for Administrative Services of the Issuer to execute an Approval Certificate with respect to the issuance of the Issuer's proposed Obligations, and to authorize the execution of this Bond Purchase Agreement relating to the Obligations. 1. PURCHASE AND SALE OF THE OBLIGATIONS. (a) Upon the terms and conditions, and in reliance upon the representations, warranties, and covenants herein, the Underwriters hereby agree to purchase from the Issuer, and the Issuer hereby agrees to sell to the Underwriters, all (but not less than all) of $8,500,000 City of Corpus Christi, Texas Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 (the "Obligations "), at the price of $ (the "Purchase Price of the Obligations ", which represents the principal amount of the Obligations, less a net original issue discount of $ , less an underwriting discount of $ ), plus accrued interest on the Obligations from their date to the date of the Closing (hereinafter defined). (b) The proceeds of the Obligations are being used for (i) making permanent public improvements within the City, including constructing street, curb, gutters, and sidewalk —280— improvements (including utilities repair, replacement and relocation) and drainage incidental thereto relating to Holly Road and Rodd Field Public Improvement District and acquiring, purchasing, constructing, renovating, enlarging, and improving Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase 1) and (ii) paying the costs of issuance. 2. PUBLIC OFFERING. The Underwriters agree to make a bona fide public offering of all of the Obligations at the offering prices set forth on the inside cover page of the Final Official Statement described below. On or before Closing, the Underwriters shall execute the Issue Price Certificate prepared by Bond Counsel (hereinafter defined) verifying the initial offering prices to the public at which the entire amount of each stated maturity of the Obligations were offered to the public. 3. OFFICIAL, STATEMENT. (a) The Issuer agrees to deliver to the Underwriters at such addresses as the Underwriters shall specify, as many copies of the Official Statement relating to the Obligations, dated July —, 2009 (the "Final Official Statement "), as the Underwriters shall reasonably request in order to comply with paragraph (b)(4) of Rule 15c2 -12 of the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule "), and with Rule G -32, and all other applicable rules, of the Municipal Securities Rulemaking Board. The Issuer agrees to deliver such Final Official Statements within seven business days after the execution of this Bond Purchase Agreement. (b) The Issuer hereby authorizes and approves the Preliminary Official Statement, dated July _, 2009, and the Final Official Statement (the Final Official Statement, the Preliminary Official Statement, and any amendments or supplements that may be authorized for use with respect to the Obligations are herein referred to collectively as the (the "Official Statement "), consents to their distribution and use by the Underwriters, and authorizes the execution (or a conformed copy thereof) of the Final Official Statement by a duly authorized officer of the Issuer. The Issuer hereby represents and warrants that the Preliminary Official Statement delivered (in an electronic format) to the Underwriters prior to the date of this Bond Purchase Agreement was deemed final by the Issuer as of the date thereof, except for the omission of such information which is dependent upon the final pricing of the Obligations for completion, all as permitted to be excluded by the Rule. (c) The Underwriters shall give notice to the Issuer on the date after which no participating underwriter, as such term is defined in the Rule, remains obligated to deliver Final Official Statements pursuant to paragraph (b)(4)(iii) of the Rule. Unless written notice to the contrary is provided by the Underwriters to the Issuer, the Issuer may assume such date to be the Closing. (d) The Issuer has agreed in the Ordinance to provide certain periodic information and notices of material events in accordance with the Rule as described in the Official Statement under "CONTINUING DISCLOSURE OF INFORMATION." The Underwriters' obligation to accept and pay for the Obligations is conditioned upon delivery to the Underwriters or their agent of a certified copy of the Ordinance containing the agreements described under such heading. 2 —281— 4. GOOD FAITH DEPOSIT. In connection with the execution of this Bond Purchase Agreement, the Representative will deliver to the Issuer a corporate check of the Representative payable to the Issuer in an amount equal to $85,000.00 as security for the performance by the Underwriters of their obligations to accept and pay for the Obligations at the Closing in accordance with the provisions of this Bond Purchase Agreement. Such check shall be held by the Issuer uncashed until the Closing. At the Closing, such check shall be returned to the Underwriters upon receipt by or on behalf of the Issuer of the Purchase Price for the Obligations. In the event the Issuer does not accept this offer, or upon its failure to deliver the Obligations at the Closing, or if it shall be unable to satisfy the conditions to the obligations of the Underwriters contained in this Bond Purchase Agreement, or if such obligations shall be terminated for any reason permitted by this Bond Purchase Agreement, such check shall be immediately returned to the Underwriters. In the event that the Underwriters fail (other than for a reason permitted under this Bond Purchase Agreement) to accept and pay for the Obligations at the Closing, such check shall be retained and may be cashed by the Issuer as and for full liquidated damages for such failure for any and all defaults hereunder on the part of the Underwriters, and the cashing of such check and retention of such proceeds shall constitute a full release and discharge of all claims and rights hereunder against the Underwriters, and the Issuer shall have no further action for damages, specific performance or any other legal or equitable relief against the Underwriters. The Underwriters hereby agree not to stop or cause payment on said check to be stopped unless the Issuer has materially breached any of the terms of this Bond Purchase Agreement. 5. REPRESENTATIONS AND WARRANTIES OF THE ISSUER. The Issuer represents and warrants to the Underwriters that: (a) The Issuer is a home rule city operating as such under the Constitution and laws of the State of Texas (the "State "), and the Issuer is authorized by the provisions of Chapter 271, Texas Local Government Code, as amended, Chapter 363, Texas Health & Safety Code, as amended, and Chapter 1371, Texas Government Code, as amended (collectively, the "Act "), among other things, (i) to issue the Obligations for the purposes described herein and (ii) to secure the Obligations in the manner described in the Ordinance and as described in the Final Official Statement. (b) The Issuer has the full legal right, power, and authority (i) to adopt the Ordinance authorizing the issuance of and awarding the sale of the Obligations pursuant to the Approval Certificate; (ii) to enter into this Bond Purchase Agreement; (iii) to issue, sell, and deliver the Obligations to the Underwriters as provided herein; and (iv) to carry out and consummate all other transactions described in each of the aforesaid documents, and the Issuer has complied with all provisions of applicable law, including the Act, in all matters relating to such transactions. (c) The Issuer has duly authorized (i) the execution and delivery of the Obligations and the execution, delivery, and due performance of this Bond Purchase Agreement; (ii) the distribution and use of the Preliminary Official Statement, in an electronic format, and execution, delivery, and distribution of the Final Official Statement; and (iii) the taking of any and all such actions as may be required on the part of the Issuer to carry out, give effect to, and consummate the transactions described in such instruments. Subject to the provisions of Section 6(a) hereof, 3 —282— all consents or approvals necessary to be obtained by the Issuer in connection with the foregoing have been received or will be received prior to the Closing, and the consents or approvals so received are still in full force and effect. The Issuer shall timely cause a transcript of proceedings to be filed with the Attorney General of the State of Texas (the "Attorney General ") in form and substance consistent with the administrative rules of the Public Finance Division of the Texas Attorney General, which will permit the review of such transcript and the approval of the Obligations by the Texas Attorney General, and the registration of the Obligations by the Comptroller of Public Accounts of the State of Texas (the "Comptroller ") as required by Section 8(b)(8) and (9) hereof, but subject to the discretion of the Texas Attorney General with respect to the issuance of his approving opinion. (d) (i) The Ordinance has been duly adopted by the Issuer, is in full force and effect, and constitutes the legal, valid, and binding obligation of the Issuer; (ii) this Bond Purchase Agreement, when executed and delivered, will constitute legal, valid, and binding special obligations of the Issuer; and (iii) the Ordinance and this Bond Purchase Agreement are enforceable against the Issuer in accordance with their respective terms, except as enforceability thereof may be limited by principles of sovereign immunity and by bankruptcy, insolvency, or other laws affecting creditors' rights generally, or by general principles of equity which permit the exercise of judicial discretion. (e) When delivered to the Underwriters, the Obligations will have been duly authorized, executed, authenticated, issued, and delivered and will constitute legal, valid, and binding special obligations of the Issuer in conformity with the laws of the State of Texas, including the Act, and will be entitled to the benefit and security of the Ordinance. (f) The information contained in the Preliminary Official Statement (except for information contained therein under the headings or subheadings "DEFAULTS AND REMEDIES ", "BOOK- ENTRY -ONLY SYSTEM ", "BOND INSURANCE ", "BOND INSURANCE GENERAL RISKS ", "RATINGS ", "TAX MATTERS ", "FINANCIAL ADVISOR ", "UNDERWRITING ", "INDEPENDENT ACCOUNTANTS ", and "APPENDIX D — FORM OF OPINION OF BOND COUNSEL," as to which no view is expressed) is, and, as of the date of Closing such information in the Final Official Statement (except for information contained therein under the headings or subheadings "DEFAULTS AND REMEDIES ", "BOOK- ENTRY -ONLY SYSTEM ", "BOND INSURANCE ", "BOND INSURANCE GENERAL RISKS ", "RATINGS ", "TAX MATTERS ", "FINANCIAL ADVISOR ", "UNDERWRITING ", "INDEPENDENT ACCOUNTANTS ", and "APPENDIX D — FORM OF OPINION OF BOND COUNSEL," as to which no view is expressed) will be, true and correct in all material respects, and the Preliminary Official Statement does not (except for information contained therein under the headings or subheadings "DEFAULTS AND REMEDIES ", "BOOK- ENTRY -ONLY SYSTEM ", "BOND INSURANCE ", "BOND INSURANCE GENERAL RISKS ", "RATINGS ", "TAX MATTERS ", "FINANCIAL ADVISOR ", "UNDERWRITING ", "INDEPENDENT ACCOUNTANTS ", and "APPENDIX D — FORM OF OPINION OF BOND COUNSEL," as to which no view is expressed), and the Final Official Statement will not (except for information contained therein under the headings or subheadings "DEFAULTS AND REMEDIES ", "BOOK- ENTRY -ONLY SYSTEM ", "BOND INSURANCE ", "BOND INSURANCE GENERAL RISKS ", "RATINGS ", "TAX MATTERS ", 4 —283— "FINANCIAL ADVISOR ", "UNDERWRITING ", "INDEPENDENT ACCOUNTANTS ", and "APPENDIX D — FORM OF OPINION OF BOND COUNSEL," as to which no view is expressed), contain any untrue statement of a material fact, or omit to state any material fact, necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (g) If, at any time prior to the earlier of (i) receipt of notice from the Underwriters pursuant to Section 3(c) hereof that Final Official Statements are no longer required to be delivered under the Rule or (ii) 25 days after the Closing, any event occurs with respect to the Issuer as a result of which the Preliminary Official Statement or the Final Official Statement as then amended or supplemented might include an untrue statement of a material fact, or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Issuer shall promptly notify the Underwriters in writing of such event. Any information supplied by the Issuer for inclusion in any amendments or supplements to the Preliminary Official Statement or the Final Official Statement will not contain any untrue or misleading statement of a material fact relating to the Issuer or omit to state any material fact relating to the Issuer necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (h) Neither the adoption of the Ordinance, the execution and delivery of this Bond Purchase Agreement, and the Obligations, nor the consummation of the transactions described herein or therein or the compliance with the provisions hereof or thereof will conflict with, or constitute on the part of the Issuer a violation of, or a material breach of or default under, (i) any statute, indenture, mortgage, commitment, note, or other agreement or instrument to which the Issuer is a party or by which it is bound; (ii) any provision of the Texas Constitution; or (iii) any existing law, rule, regulation, ordinance, judgment, order, or decree to which the Issuer (or the members of the City Council, or any of its officers in their respective capacities as such) is subject. (i) Except as may be disclosed in the Official Statement, the Issuer is not, in any material respect that would adversely affect the validity or marketability of the Obligations, in material breach of or default under any applicable law or administrative regulation of the State of Texas or any department, division, agency, or instrumentality thereof, or of the United States or any agency or instrumentality thereof or any applicable judgment or decree or any loan agreement, note, resolution, certificate, agreement, or other instrument to which the Issuer is a party or is otherwise subject; and except as described in the Official Statement, the Issuer has not entered into any contract or arrangement of any kind which might give rise to any lien or encumbrance on the Pledged Revenues pledged to the payment of the Obligations superior to or on a parity with the pledge securing the payment of the Obligations. (j) Except as is specifically disclosed in the Official Statement, there is no action, suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court, public board, or body, pending, or, to the best knowledge of the Issuer, threatened, which in any way questions the powers of the Issuer referred to in paragraph (b) above, or the validity of any proceeding taken by the Issuer in connection with the issuance of the Obligations, or wherein an unfavorable decision, ruling, or finding could materially adversely affect the transactions described in this 5 —284— Bond Purchase Agreement or of any other document or instrument required or described in this financing, or which, in any way, could adversely affect the validity or enforceability of the Ordinance, the Obligations, or this Bond Purchase Agreement, the collection or application of the ad valorem tax receipts to be utilized to pay the principal or and interest on the Obligations, or, to the knowledge of the Issuer, which in any way questions the exclusion from gross income of the recipients thereof of the interest on the Obligations for federal income tax purposes. (k) Any certificate signed by an official of the Issuer and delivered to the Underwriters shall be deemed a representation and warranty by the Issuer, as appropriate, to the Underwriters as to the truth of the statements therein contained. (1) The Issuer has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. (m) The Issuer will not knowingly take or omit to take any action, which action or omission will in any way cause the proceeds from the sale of the Obligations be applied in a manner other than as provided in the Ordinance. (n) Except as may otherwise be disclosed in the Official Statement, the Issuer has complied in all material aspects with all previous continuing disclosure undertaldngs in written contracts or agreements entered into by the Issuer as specified in paragraph (b)(5)(i) of the Rule within the last five years. (o) To the best of the knowledge of the Issuer, the financial statements of the System included in APPENDIX B to the Final Official Statement present fairly the financial position and the results of operations of the System at the respective dates and for the respective periods indicated therein, in conformity with generally accepted accounting principles applied on a consistent basis throughout the periods presented. (p) As of the date of the Closing, there will not be any material adverse change in the financial position, results of operations, or condition, financial or otherwise, of the City's solid waste system (the "System ") from that described in the Final Official Statement, other than in the ordinary course of the System's business. (q) Between the date of this Bond Purchase Agreement and the Closing, the City will not, without the prior written consent of the Underwriters, issue any additional bonds, notes or other obligations from borrowed money payable in whole or in part from ad valorem taxes levied by the City, except as may occur in the ordinary course of operations, nor will there be any adverse changed of a material nature in the financial position of the City. 6. COVENANTS OF THE ISSUER. The Issuer covenants with the Underwriters as follows: (a) The Issuer will cooperate, at no expense to the Issuer, with the Underwriters in qualifying the Obligations for offer and sale under the securities or Blue Sky laws of such jurisdictions of the United States as the Underwriters may request; provided, however, that the 6 —285— Issuer shall not be required to consent to suit or to service of process in any jurisdiction. The Issuer consents to the use by the Underwriters in the course of their compliance with the securities or Blue Sky laws of the various jurisdictions of the documents relating to the Obligations, subject to the right of the Issuer to withdraw such consent for cause by written notice to the Underwriters. (b) Prior to the earlier of (i) receipt of notice from the Underwriters pursuant to Section 3(c) hereof that Final Official Statements are no longer required under the Rule or (ii) 25 days after the Closing, the Issuer shall provide the Underwriters with such information regarding its current financial condition and ongoing operations as the Issuer shall deem material and such other information concerning the Issuer as the Underwriters may reasonably request. 7. CLOSING. At or before 10:00 a.m., Corpus Christi, Texas time on August _, 2009 or at such other time and/or date as shall have been mutually agreed upon by the Issuer and the Underwriters, the Issuer will deliver, or cause to be delivered, to the Underwriters, the Obligations together with the other documents hereinafter mentioned and, provided the Underwriters have made arrangements with The Depository Trust Company, New York, New York ( "DTC "), for the Obligations to be book -entry-only securities, the Issuer shall take appropriate steps to provide DTC, or its designated agent, with one definitive bond for each year of maturity of the Obligations, and the Underwriters will accept such delivery and pay the Purchase Price of the Obligations by making a federal funds wire transfer in immediately available funds to The Bank of New York Mellon Trust Company, National Association, Dallas, Texas (the "Paying Agent/Registrar ") for the account of the Issuer. Upon receipt of such payment and at the Closing, the Issuer immediately shall return to the Representative the good faith check described in Section 4 hereof. The activities relating to the final execution and delivery of the Obligations and the payment therefor and the delivery of the certificates, opinions, and other instruments as described in Section 8 of this Bond Purchase Agreement shall occur at such place in Corpus Christi, Texas, or such other place as shall have been mutually agreed upon by the Issuer and the Underwriters. The payment for the Obligations and simultaneous delivery of the Obligations to the Underwriters is herein referred to as the "Closing." 8. CLOSING CONDITIONS. The obligations of the Underwriters to purchase the Obligations shall be subject (a) to the performance by the Issuer of its obligations to be performed hereunder at and prior to the Closing, (b) to the accuracy of the representations and warranties of the Issuer herein as of the date hereof and as of the time of the Closing, and (c) to the following conditions, including the delivery by the Issuer of such documents as are enumerated herein in form and substance satisfactory to Bond Counsel (named below) and Law Offices of William T. Avila, P.C., Corpus Christi, Texas, as counsel to the Underwriters ( "Underwriters' Counsel "): (a) At the time of Closing, (i) the Official Statement, this Bond Purchase Agreement, and the Ordinance shall be in full force and effect and shall not have been amended, modified, repealed, or supplemented from the date hereof except as may have been agreed to in writing by the Underwriters; (ii) the proceeds of the sale of the Obligations shall be deposited and applied as 7 —286— described in the Ordinance; (iii) the Issuer shall have duly adopted and there shall be in full force and effect such ordinances or resolutions as, in the opinions of Fulbright & Jaworski L.L.P., San Antonio, Texas, as Bond Counsel ( "Bond Counsel "), shall be necessary in connection with the transactions described herein, and (iv) there shall not have occurred any change or any development involving a prospective change, in the condition, financial or otherwise, or in the earnings or operations of the System from that set forth in the Official Statement that, in the reasonable judgment of the Underwriters, is material and adverse and that makes it, in the reasonable judgment of the Underwriters, impracticable or inadvisable to market the Obligations on the terms and in the manner described in the Official Statement. (b) At or prior to the Closing, the Underwriters shall receive one copy of the following documents in such number of counterparts as shall be mutually agreeable to the Underwriters Counsel and Bond Counsel. (1) The Ordinance (containing the agreement to provide continuing disclosure of information as described in the Official Statement), the Approval Certificate, and the Paying Agent/Registrar Agreement, dated as of June 30, 2009, between the Issuer and The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, with such supplements or amendments to any of the foregoing documents as may have been agreed to by the Representative; (2) Final opinion of Bond Counsel dated the date of Closing, in substantially the form set forth as APPENDIX D in the Official Statement; (3) A letter of Bond Counsel addressed to the Underwriters and dated the date of Closing, to the effect that Bond Counsel's fmal opinions referred to in Section 8(b)(2) hereof may be relied upon by the Underwriters to the same extent as if such opinions were addressed to the Underwriters; (4) A supplemental opinion of Bond Counsel addressed to the Underwriters and dated the date of Closing, in substantially the form set forth in Exhibit B hereto; (5) An opinion of the City Attorney of the Issuer substantially in the form of Exhibit C attached hereto; (6) A certificate signed by an authorized officer of the Issuer as prepared by Bond Counsel setting forth facts, estimates, and circumstances in existence on the date of Closing, which facts, estimates, and circumstances shall be sufficiently set forth therein to support the conclusion that it is not expected that the proceeds of the Obligations will be used in a manner or that the Issuer will take any action or omit to take any action that would cause the Obligations to be "arbitrage bonds," with the meaning of the Internal Revenue Code of 1986, as amended (the "Code "), and the regulations, temporary regulations, and proposed regulations promulgated under the Code, and stating that to the best knowledge and belief of such officer there are no other facts, estimates, or circumstances that would materially affect such expectations; 8 —287— (7) An opinion of Underwriters' Counsel in substantially the form set forth in Exhibit D hereto; (8) The approving opinion of the Texas Attorney General with respect to the Obligations; (9) The registration certificate of the Texas Comptroller of Public Accounts with respect to the Obligations; (10) A conformed copy of the Final Official Statement, and each supplement or amendment thereto, if any, as may have been agreed to by the Underwriters; (11) Letters from Moody's Investors Service, Inc. ( "Moody's "), Standard & Poor's Ratings Services, a Division of the McGraw -Hill Companies, Inc. ( "S &P "), and Fitch Ratings ( "Fitch ") to the effect that the Obligations have been assigned ratings of "Aa2," "AAA," and "AAA," respectively, based upon the Bond Insurance Policy (as defined below) of , which ratings shall be in effect as of the date of Closing; (12) A certificate, in form and substance satisfactory to the Issuer, Bond Counsel, the Representative, and Underwriters Counsel, of the Issuer or any duly authorized officer or official of the Issuer, dated as of the Closing, to the effect that: (i) each of the Issuer's representations, warranties, and covenants contained herein are true and correct as of the Closing; (ii) the Issuer has authorized, by all action necessary under the Act and the laws and Constitution of the State, the adoption of the Ordinance, and the execution, delivery, and due performance of the Obligations, and this Bond Purchase Agreement; (iii) except as disclosed in the Official Statement, no litigation is pending, or to the knowledge of the officer or official of the Issuer signing the certificate threatened, to restrain or enjoin the issuance or sale of the Obligations or in any way affecting any authority for or the validity of the Ordinance, the Obligations, or this Bond Purchase Agreement; (iv) the Obligations, and this Bond Purchase Agreement, as executed by the Issuer, are in the form or in substantially the form approved for such execution by appropriate proceedings of the Issuer; (v) since July 31, 2008 there has not been any material adverse change in the properties, financial position, or results of operations of the System, whether or not arising from transactions in the ordinary course of business, other than as set forth in the Official Statement; (vi) the information contained in the Official Statement (except for information contained therein under the headings or subheadings "DEFAULTS AND REMEDIES ", "BOOK- ENTRY -ONLY SYSTEM ", "BOND INSURANCE ", "BOND INSURANCE GENERAL RISKS ", "RATINGS ", "TAX MATTERS," "FINANCIAL ADVISOR ", "UNDERWRITING ", "INDEPENDENT ACCOUNTATNS ", and "APPENDIX D — FORM OF OPINION OF BOND COUNSEL," as to which no view is expressed) is true and correct in all material respects and does not contain any untrue or incorrect statement of a material fact and does not omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading; (vii) since the date of the Official Statement and the statistical information contained therein, there has been no material adverse change in the utilization of the System and no material adverse change in the governmental rules or regulations under which the System operate; and (viii) all agreements or conditions to be performed or complied with by the Issuer under this Bond Purchase Agreement on or prior to the Closing Date have been performed or complied with; 9 —288— (13) A certificate, dated the Closing Date, of the Issuer as to the receipt of payment for the Obligations; (14) Evidence acceptable to the Underwriters' Counsel that a policy of bond insurance (the "Insurance Policy ") has been issued by (the "Bond Insurer "), which unconditionally and irrevocably guarantees the full, complete, and timely payment of the Obligations, together with standard closing certificates of the Bond Insurer; (15) The opinion of Bond Insurer's Counsel, dated the Closing Date, and addressed to the Issuer and the Underwriters, as to (i) the due incorporation and valid existence of the Bond Insurer, (ii) the validity and enforceability of the Insurance Policy, and (iii) that the information relating to the Bond Insurer appearing under the captions `BOND INSURANCE" and "BOND INSURANCE GENERAL RISKS" in the Official Statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein in the light of the circumstances under which they were made, not misleading; and (16) Such additional legal opinions, certificates, proceedings, instruments, and other documents as Underwriters' Counsel or Bond Counsel may reasonably request to evidence compliance by the Issuer with legal requirements, the truth and accuracy, as of the time of Closing, of the representations of the Issuer herein contained, and the due performance or satisfaction by the Issuer at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Issuer. If the Issuer shall be unable to satisfy the conditions to the obligations of the Underwriters contained in this Bond Purchase Agreement, or if the obligations of the Underwriters to purchase and accept delivery of the Obligations shall be terminated for any reason permitted by this Bond Purchase Agreement, the good faith check described in Section 4 hereof shall be returned to the Representative, this Bond Purchase Agreement shall terminate, and neither the Underwriters nor the Issuer shall be under further obligation hereunder. 9. CANCELLATION RIGHTS. The Underwriters shall have the right to cancel their obligations to purchase the Obligations if between the date hereof and the date of Closing: (a) the House of Representatives or the Senate of the Congress of the United States, or a committee of either, shall have pending before it, or shall have passed or been recommended favorably, legislation introduced after the date hereof, which legislation, if enacted in its form introduced or as amended, would have the purpose or effect of imposing federal income taxation upon revenues or other income of the general character to be derived by the Issuer, or by any similar body, or upon interest received on obligations of the general character of the Obligations, to be includable in gross income for purposes of federal income taxation, and such legislation, in the Underwriters' reasonable opinion, materially adversely affects the market price of the Obligations; or (b) a decision with respect to legislation shall be reached by a committee of the House of Representatives or the Senate of the Congress of the United States, or legislation shall be 10 —289— favorably reported by such a committee or be introduced, by amendment or otherwise, in or be passed by the House of Representatives or the Senate, or recommended to the Congress of the United States for passage by the President of the United States, or be enacted, or a decision by a federal court of the United States or the United States Tax Court shall have been rendered, or a ruling, release, order, regulation or official statement by or on behalf of the United States Treasury Department, the Internal Revenue Service, or other governmental agency shall have been made or proposed to be made having the purpose or effect, or any other action or event shall have occurred which has the purpose or effect, directly or indirectly, of adversely affecting the federal income tax consequences of owning the Obligations or of any of the transactions described in connection herewith, including causing interest on the Obligations to be included in gross income for purposes of federal income taxation, or imposing federal income taxation upon revenues or other income of the general character to be derived by the Issuer, or by any similar body, or upon interest received on obligations of the general character of the Obligations, which, in the reasonable opinion of the Underwriters, materially adversely affects the market price of, or market for, the Obligations; or (c) legislation shall have been enacted, or actively considered for enactment with an effective date prior to the Closing, or a decision by a court of the United States shall have been rendered, the effect of which is that the Obligations, including any underlying obligations, or the Ordinance, as the case may be, is not exempt from the registration, qualification, or other requirements of the Securities Act of 1933, as amended and as then in effect, the Securities Exchange Act of 1934, as amended and as then in effect, or the Trust Indenture Act of 1939, as amended and as then in effect; or (d) a stop order, ruling, regulation, or official statement by the United States Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, shall have been issued or made, or any other event occurs, the effect of which is that the issuance, offering, or sale of the Obligations, including any underlying obligations, or the execution and effectiveness of the Ordinance as described herein or by the Official Statement is, or would be, in violation of any provision of the federal securities laws, including the Securities Act of 1933, as amended and as then in effect, the Securities Exchange Act of 1934, as amended and as then in effect, or the Trust Indenture Act of 1939, as amended and as then in effect; or (e) any event shall have occurred or any information shall have become known to the Underwriters which causes the Underwriters to reasonably believe that the Official Statement, as then amended or supplemented, includes an untrue statement of a material fact, or omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and such omission, in the Underwriters' reasonable opinion, materially adversely affects the market price of the Obligations; or (f) there shall have occurred a (i) material outbreak of hostilities (including, without limitation, an act of terrorism) or (ii) new material other national or international calamity or crisis, or any material adverse change in the financial, political or economic conditions affecting the United States, including, but not limited to, an escalation of hostilities that existed prior to the date hereof or (iii) a financial crisis, the effect of which on the financial markets of the United 11 —290— States is such as, in the reasonable judgment of the Underwriters, would materially adversely affect the market for, or market price of, the Obligations; or (g) there shall be in force a general suspension of trading on the New York Stock Exchange, the effect of which on the financial markets of the United States is such, in the reasonable judgment of the Underwriters, would materially adversely affect the market for, or market price of, the Obligations; or (h) a general banking moratorium shall have been declared by Federal, New York, or State authorities; or (i) any proceeding shall be pending or threatened by the United States Securities and Exchange Commission against the Issuer; or 0) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any governmental authority or by any national securities exchange; or (k) the New York Stock Exchange or other national securities exchange, or any governmental authority, shall impose, as to the Obligations or obligations of the general character of the Obligations, any material restrictions not now in force, or increase materially those now in force, with respect to the extension of credit by, or the charge to the net capital requirements of, underwriters; or (1) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred. With respect to the conditions described in subparagraphs 0) and (k) above, the Underwriters are not aware of any current, pending or proposed law or government inquiry or investigation as of the date of execution of this Bond Purchase Agreement which would permit the Underwriters to invoke their termination rights thereunder. 10. ISSUER OBLIGATIONS SUBJECT TO PERFORMANCE BY UNDERWRITERS. The obligations of the Issuer hereunder are subject to the performance by the Underwriters of their obligations hereunder. 11. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. Unless otherwise set forth herein, all representations, warranties, and agreements of the Issuer shall remain operative and in full force and effect, regardless of any investigations made by or on behalf of the Underwriters or the Issuer and shall survive the Closing. 12. EXPENSES The Issuer will pay or cause to be paid all reasonable expenses incident to the performance of its obligations under this Bond Purchase Agreement, including, but not limited to, mailing or delivery of the Obligations; costs of printing the Obligations, the Preliminary Official Statement and Final Official Statement, any amendment or supplement to the Preliminary Official Statement or the Final Official Statement, and this Bond Purchase 12 —291— Agreement; fees and disbursements of Bond Counsel; any fees charged by investment rating agencies for the rating of the Obligations; any municipal bond insurance or premium; any paying agent fees; fees related to the Attorney General's review of the transcript of proceedings related to the Obligations; any fees and expenses of the Issuer's independent certified public accountants; and fees and expenses of the Financial Advisors to the Issuer. The Underwriters shall pay all advertising expenses in connection with the public offering of the Obligations and all other expenses incurred by them, including any "blue sky" and legal investment memorandum preparation, in connection with their public offering and distribution of the Obligations, including the fees and disbursements of Underwriters' Counsel. The Underwriters shall not be responsible for travel, lodging, meal, entertainment or deal memento expenses for officials, officers or employees of the Issuer, unless such expenses have been incurred by the Underwriters at their discretion. 13. OTHER TRANSACTIONS BY UNDERWRITERS AND ISSUER. The Underwriters or their affiliates may from time to time, in their individual capacity and separate and apart from the transactions contemplated hereby and the compensation provided for herein, sell securities to, provide derivative products to, engage in swaps with, and enter into other transactions with the Issuer, or their agents acting in their behalf, and shall be entitled to retain any compensation or profits inuring to the Underwriters or their affiliates in connection therewith as approved by the Issuer. 14. NOTICES. Any notice or other communication to be given to the Issuer under this Bond Purchase Agreement may be given by delivering the same in writing at its address set forth above (with an additional copy to the City Manager) and any notice or other communication to be given to the Underwriters under this Bond Purchase Agreement may be given by delivering the same in writing to Estrada Hinojosa & Company, Inc., 100 West Houston Street, Suite 1400, San Antonio, Texas 78205, Attention: Donald J. Gonzales, CPA, Managing Director. 15. No RECOURSE AGAINST ISSUER INDIVIDUALS. No recourse shall be had for payment of the principal of or interest on any Obligations or for any claim based thereon, against any official or employee of the Issuer or any person executing any Obligations. 16. FIDUCIARY DUTY. The Issuer acknowledges that in connection with the offering of the Obligations (a) the Underwriters have acted at arms length, are not an agent of, and owe no fiduciary duties to, the Issuer and (b) the Underwriters may have interests that differ from those of the Issuer. 17. PARTIES IN INTEREST. This Bond Purchase Agreement is made solely for the benefit of the Issuer and the Underwriters (including the successors or assigns of the Underwriters) and no other person, including any purchaser of the Obligations, shall acquire or have any right hereunder or by virtue hereof. 18. EFFECTIVENESS. This Bond Purchase Agreement shall become effective upon the acceptance hereof by the Issuer and shall be valid and enforceable at the time of such acceptance. 13 —292— 19. CHOICE OF LAW. This Bond Purchase Agreement shall be govemed by and construed in accordance with the laws of the State of Texas and the United States of America. 20. SEVERABILITY. If any provision of this Bond Purchase Agreement shall be held or deemed to be or shall, in fact, be invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions, or in all jurisdictions because it conflicts with any provisions of any Constitution, statute, rule of public policy, or any other reason, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions of this Bond Purchase Agreement invalid, inoperative or unenforceable to any extent whatever. 21. SECTION HEADINGS. Section headings have been inserted in this Bond Purchase Agreement as a matter of convenience of reference only, and it is agreed that such section headings are not a part of this Bond Purchase Agreement and will not be used in the interpretation of any provisions of this Bond Purchase Agreement. 22. ENTIRE AGREEMENT. This Bond Purchase Agreement, together with any contemporaneous written agreements and any prior written agreements (to the extent not superseded by this Bond Purchase Agreement) that relate to the offering of the Obligations, represents the entire agreement between the Issuer and the Underwriters with respect to the preparation of the Official Statement, and the conduct of the offering, and the purchase and sale of the Obligations. SIGNATURE TO FOLLOW [The remainder of this page intentionally left blank] 14 —293— 23. COUNTERPARTS. This Bond Purchase Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same document. This Bond Purchase Agreement shall become effective upon the execution of the acceptance hereof by the officially authorized and designated officers of the Issuer shown below and shall be valid and enforceable as of the time of such acceptance. Very truly yours, ESTRADA HINOJOSA & COMPANY, INC. As Underwriters By: Donald J. Gonzales. CPA Title: Managing Director Accepted and agreed to as of the date first written above: CITY OF CORPUS CHRISTI, TEXAS By: Angel R. Escobar Title: City Manager APPROVED: By: Mary Kay Fischer Title: City Attorney [SIGNATURE PAGE TO THE BOND PURCHASE AGREEMENT] —294— EXHIBIT A $8,500,000 City of Corpus Christi, Texas Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 Dated August 1, 2009 (Interest to accrue from this Dated Date) Maturity Date (March 1) Amount Rate Yield Price Optional Redemption. The Obligations maturing on and after March 1, 20_, are subject to optional redemption by the City, in whole or in part, prior to stated maturity, on March 1, 20_ and on any date thereafter, at a redemption price equal to the par value thereof plus accrued interest to the date fixed for redemption. —295— EXHIBIT B [LETTERHEAD OF BOND COUNSEL] August _, 2009 Estrada Hinojosa & Company, Inc., 100 West Houston Street, Suite 1400 San Antonio, Texas 78205 City of Corpus Christi, Texas City Hall 1201 Leopard Corpus Christi, Texas 78401 Re: $8,500,000 City of Corpus Christi, Texas Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 Ladies and Gentlemen: This opinion is being rendered pursuant to the Bond Purchase Agreement, dated , 2009 (the "Bond Purchase Agreement "), between Estrada Hinojosa & Company, Inc., as the underwriters named in the Bond Purchase Agreement (the "Underwriters "), and the City of Corpus Christi, Texas (the "City") relating to the issuance, sale and delivery by the City to the Underwriters of the captioned bonds (the "Obligations "). Except as otherwise defined herein, the terms defined in the Bond Purchase Agreement are used in this opinion with the meanings assigned to them in the Bond Purchase Agreement. We have acted as Bond Counsel to the City in accordance with the issuance, sale and delivery of the Obligations to the Underwriters. In our capacity as Bond Counsel, we have examined a transcript of certain materials and proceedings pertaining to the Obligations, including certain certified and original proceedings of the City and customary certificates, opinions, and other documents executed by officers, agents, and representatives of the City, and others. In our capacity as Bond Counsel, we have also attended meetings of the City and have participated in conferences from time to time with representatives of the City, the Financial Advisors of the City, the Underwriters, and Underwriters' Counsel relative to the Preliminary Official Statement and the Final Official Statement. In our capacity as Bond Counsel, we have reviewed the following: (a) (b) a certified copy of the Ordinance, including the Approval Certificate; an executed counterpart of the Bond Purchase Agreement; (c) an executed counterpart of the Paying Agent/Registrar Agreement dated as of June 30, 2009 between the City and The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, as paying agent/registrar; (d) a copy of the Preliminary Official Statement dated July _, 2009 and a copy of the Final Official Statement dated , 2009 (the "Official Statement "); —296— (g) such other agreements, documents, certificates, opinions, letters, and other papers as we have deemed necessary or appropriate in rendering the opinions set forth below; and (h) Chapter 271, as amended, Texas Local Government Code, Chapter 361, as amended, Texas Health & Safety Code, and Chapter 1371, as amended, Texas Government Code and such other provisions of the Constitution and laws of the State of Texas and the United States of America as we believe necessary to enable us to render the opinions herein contained. In our examination, we have assumed the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies, and the authenticity of the originals of such latter documents. Based upon the foregoing, we are of the opinion that, under applicable laws of the United States of America and the State of Texas in force and effect on the date hereof: 1. The offering and sale of the Obligations need not be registered under the Securities Act of 1933, as amended; 2. No filing is required under the Trust Indenture Act of 1939, as amended, in connection with the Obligations or the Ordinance; 3. The statements in the Official Statement, insofar as they describe the Obligations and the ordinance (except for any financial, technical, or statistical data therein), under the captions "THE CERTIFICATES OF OBLIGATION ", "REGISTRATION TRANSFER AND EXCHANGE ", "CONTINUING DISCLOSURE OF INFORMATION" (except matters discussed under the subcaption "Compliance with Prior Undertakings ", as to which no opinion is expressed), "LEGAL MATTERS" (except for the last sentence of the first paragraph thereof as to which no opinion is expressed), "TAX MATTERS," "LEGAL INVESTMENTS AND ELIGIBILITY TO. SECURE PUBLIC FUNDS IN TEXAS," "REGISTRATION AND QUALIFICATIONS OF CERTIFICATES FOR SALE," and "APPENDIX D — FORM OF OPINION OF BOND COUNSEL" are accurate and fair descriptions of the laws and legal issues addressed therein and, with respect to the Obligations, such information conforms to the Ordinance. We express no opinion and make no comment with respect to the sufficiency of the security for or the marketability of the Obligations. We express no opinion concerning any effect on the foregoing opinions which may result from changes in law effected after the date hereof. In our capacity as Bond Counsel we have delivered on this date the opinion in substantially the form set forth in Appendix D of the Official Statement. The Underwriters may rely on such opinion as if it were addressed to the Underwriters. In rendering this opinion, we have not represented any of the Underwriters nor rendered any advice to the Underwriters in connection with the Bond Purchase Agreement or the B -2 —297— transactions contemplated thereby, other than set forth therein. This opinion may not be relied upon by any other person or by you in any other context, without our prior written consent. This opinion is not to be used, circulated, quoted, or otherwise referred to for any other purpose. Very truly yours, B -3 —298— EXHIBIT C [LETTERHEAD OF THE CITY ATTORNEY] August -, 2009 Estrada Hinojosa & Company, Inc. 100 West Houston Street, Suite 1400 San Antonio, Texas 78205 City of Corpus Christi, Texas City Hall 1201 Leopard Corpus Christi, Texas 78401 Law Offices of William T. Avila, P.C. 111 Soledad Street, Suite 1875 San Antonio, Texas 78205 Fulbright & Jaworski L.L.P. 300 Convent Street, Suite 2200 San Antonio, Texas 78205 New York, New York Re: $8,500,000 City of Corpus Christi, Texas Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 Ladies and Gentlemen: I am the City Attorney to the City of Corpus Christi, Texas (the "City") and have acted as such in connection with the issuance of the captioned Obligations (the "Obligations ") pursuant to an ordinance duly adopted by the City Council of the City of Corpus Christi, Texas on June 30, 2009 (the "Bond Ordinance "). Capitalized terms not otherwise defined in this letter have the meanings assigned in the Bond Purchase Agreement. In my capacity as City Attorney to the City, I or my designated attorneys have reviewed the following: 1. The Bond Ordinance, including the Approval Certificate, as adopted by the City Council; 2. An executed counterpart of the Bond Purchase Agreement, dated , 2009 (the "Bond Purchase Agreement "), between the City and the Underwriters named in such Bond Purchase Agreement, including the Approval Certificate; 3. Executed counterparts of the Paying Agent/Registrar Agreement (the "Agreement "), as prepared by the City's Bond Counsel; 4. A conformed copy of the Official Statement dated , 2009 (the "Official Statement "); 5. Such other agreements, documents, certificates, opinions, letters and other papers as I have deemed necessary or appropriate in rendering the opinions set forth below; and 6. Chapter 271, Texas Local Government Code, as amended, Chapter 363, Texas Health & Safety Code, as amended, and Chapter 1371, Texas Government Code, as amended (collectively, the "Act "), and such other provisions of the Constitution and laws of the State of Texas and the United States of America as I believe necessary to enable me to render the opinions herein contained. In making my review, I, or my designated attorneys, have assumed the authenticity of all documents and agreements submitted to me as originals, conformity to the originals of all documents and agreements submitted to me as certified or photostatic copies, the authenticity of the originals of such latter documents and agreements, and the accuracy of the statements contained in such documents. Based upon the foregoing, it is my opinion that: 1. The City has duly adopted and enacted the Bond Ordinance in accordance with the Act; the City has full legal right, power and authority to enter into the Bond Purchase Agreement, and the Agreement, to adopt the Bond Ordinance, and to issue, sell and deliver the Obligations to the Underwriters as provided in such Bond Purchase Agreement; the City has duly authorized and approved the execution and the delivery of, and the performance by the City of the obligations contained in, the Obligations, the Bond Purchase Agreement, the Agreement and the Bond Ordinance, and all other transactions contemplated by the Official Statement; the City has complied with, and is in compliance with Texas law in all respects regarding the sale, issuance and delivery of the Obligations, including the provisions relating to its obligations under the Act, the Bond Ordinance, the Obligations, and the Bond Purchase Agreement, and assuming the due authorization, execution, and delivery by the other contracting parties of the Agreement, the Bond Purchase Agreement, and the Bond Ordinance constitute valid, legal and binding agreements of the City, enforceable in accordance with their respective terms, subject to principles of sovereign immunity and bankruptcy, insolvency, reorganization or other laws relating to or affecting the rights of creditors generally and general equitable principles; 2. The City is a body politic and corporate, duly incorporated and existing under the laws of the State of Texas, is a political subdivision thereof, and has good right and lawful authority to operate, maintain and improve the System and to fix and establish rates and other charges in respect thereof and collect revenues therefrom, as required by the Bond Ordinance, and to perform all of its obligations under the Bond Ordinance; 3. Except for permits and similar authorizations under the securities or blue sky laws of certain jurisdictions, no consent, waiver or any other action of any person, board or body, public or private, is required as of the date hereof for the City to adopt the Bond Ordinance or issue the Obligations, or to enter into the Bond Purchase Agreement, or to perform its obligations under any of the foregoing other than those which have been duly and validly obtained and are in full force and effect; 4. Based on reasonable inquiry made of the responsible City employees and public officials, the City is not, to the best of my knowledge, in material breach of or in default under any applicable constitutional provision, law or administrative regulation of the State of Texas or the United States relating to the System, or any applicable judgment or decree or any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to —3QQZ which the City is a party or is otherwise subject and, to the best of my knowledge after due inquiry, no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute such a default by the City under any of the foregoing; and the execution and delivery of the Bond Purchase Agreement, the Obligations, the Agreement, and the adoption of the Bond Ordinance and compliance with the provisions of each of such agreements or instruments do not conflict with or constitute a material breach of or default under any applicable constitutional provision, law or administrative regulation of the State of Texas or the United States or any applicable judgment or decree or, to the best of my knowledge, any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other instrument to which the City is a party or is otherwise subject; and 5. Except as disclosed in the Official Statement, no litigation is pending, or, to my knowledge, threatened, in any court (a) in any way challenging the titles of the Mayor or any of the other members of the City Council of the City to their respective offices, or (b) seeking to restrain or enjoin the issuance or delivery of any of the Obligations, or the levy and collection of an annual ad valorem tax pledged or to be pledged to pay the principal of premium, if any, and interest on the Obligations, or the pledge thereof, or the collection of a material amount of revenues pledged or to be pledged to pay the principal of, premium, if any, and interest on the Obligations, or in any way contesting or affecting the validity or enforceability of the Obligations, the Bond Ordinance, the Bond Purchase Agreement, or the Agreement or the collection of a material amount of revenues or the pledge thereof, or contesting the powers of the City or any authority for the issuance of the Obligations, or the adoption of the Bond Ordinance, or contesting or affecting in any way the ability of the City to establish rates and charges for the use of the System, except as disclosed in the Official Statement. In addition, without having undertaken to determine independently the accuracy and completeness of the statements contained in the Official Statement, nothing has come to my attention which would lead me to believe that the Official Statement (excluding therefrom the financial and statistical data and forecasts included therein) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. The opinions herein are expressed as of the date hereof. I consent to the reference to this opinion in the Official Statement. Very truly yours, Mary Kay Fischer City Attorney for the City of Corpus Christi, Texas EXHIBIT D [LETTERHEAD OF UNDERWRITERS' COUNSEL] April 2, 2009 Estrada Hinojosa & Company, Inc. 100 West Houston Street, Suite 1400 San Antonio, Texas 78205 Re: $8,500,000 City of Corpus Christi, Texas Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 Ladies and Gentlemen: We have acted as counsel to you as the Underwriters (the "Underwriters ") the captioned Obligations (the "Obligations ") issued under and pursuant to an ordinance (the "Ordinance ") of the City of Corpus Christi, Texas (the "City ") authorizing the issuance of the Obligations, which Obligations you are purchasing pursuant to a Bond Purchase Agreement, dated , 2009 (the "Bond Purchase Agreement ") between the Underwriters and the City. In connection with the rendering of this opinion, we have examined originals or copies, certified or otherwise identified to our satisfaction, of documents, opinions, certificates, instruments and records as we have considered necessary or appropriate for purposes of rendering the opinions hereinafter expressed. In addition, we have made such investigations of law and facts as we have deemed appropriate or necessary as a basis for these opinions. We have not been requested to and are not expressing any opinion or views on the authorization, execution, issuance, delivery or validity of, or tax exemption with respect to, the Obligations. We have assumed but have not independently verified that the signatures on all documents and certificates that we have examined are genuine and that the Obligations conform to the specimen copies thereof that we have examined. Based upon the foregoing, we are of the opinion that: (1) the Obligations are not required to be registered under the Securities Act of 1933, as amended; and (2) the Ordinance is not required to be qualified under the Trust Indenture Act of 1939, as amended. In addition, based upon (i) our understanding of the Securities and Exchange Commission ( "SEC ") Rule 15c2 -12 (the "Rule ") and interpretive guidance published by the SEC relating thereto, (ii) our review of the continuing disclosure undertaking of the Issuer contained in the Ordinance, and (iii) the inclusion in the Official Statement of a description of the specifics of such undertaking, and in reliance on the opinion of Bond Counsel that the Ordinance has been duly adopted by the Issuer and constitutes a valid and legally binding obligation of the Issuer enforceable in accordance with its terms, we have no reason to believe that such undertaking does not meet the requirement of paragraph (b)(5)(i) of the Rule and, accordingly, we advise you that such undertaking provides a suitable basis for you, as the Underwriters, and any other broker, dealer, or municipal securities dealer acting as a Participating Underwriter (as defined in the Rule) in connection with the offering of the Obligations, to make a reasonable determination that the Issuer has met the qualifications of paragraph (b)(5)(i) of the Rule. Because the primary purpose of our professional engagement as your counsel was not to establish factual matters, and because of the wholly or partially nonlegal character of many of the determinations involved in the preparation of the Official Statement dated July _, 2009 (the "Official Statement ") that describes the Issuer and the Obligations and because the information in the Official Statement under the headings "BOOK- ENTRY -ONLY SYSTEM," "TAX MATTERS," "CONTINUING DISCLOSURE INFORMATION — Compliance with Prior Undertakings" and the Appendices thereto were prepared by others who have been engaged to review or provide such information, we are not passing on and do not assume any responsibility for the information contained under such headings and in the appendices, and, except as set forth in the last sentence of this paragraph, we are not passing on and do not assume any responsibility for the accuracy, completeness or fairness of other statements contained in the Official Statement (including any appendices, schedules and exhibits thereto) and we make no representation that we have independently verified the accuracy, completeness or fairness of such statements. In the course of our participation in the preparation of the Official Statement as your counsel, we had discussions with representatives of the Issuer, including its Financial Advisors and Bond Counsel, regarding the contents of the Official Statement. In the course of such activities, no facts came to our attention which would lead us to believe that the Official Statement (except for the financial statements and other financial and statistical data contained therein, the information set forth under the headings "BOOK- ENTRY -ONLY SYSTEM," "TAX MATTERS," "CONTINUING DISCLOSURE INFORMATION — Compliance with Prior Undertakings" and the Appendices thereto, as to which we express no opinion), as of its date contained any untrue statement of a material fact or omitted to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. This letter is furnished by us for your sole benefit and no other person or entity shall be entitled to rely upon this opinion without our express written consent. Very truly yours, D -2 _303— PRELIMINARY OFFICIAL STATEMENT DATED , 2009 NEW ISSUE - Book - Entry -Only Ratings (Enhanced/Unenhanced): Moody's: "Applied For" S &P: "Applied For" Fitch: "Applied For" (See "BOND INSURANCE" and "RATINGS" herein) In the opinion of Bond Counsel, assuming continuing compliance by the City after the date of initial delivery of the Certificates (defined below) with certain covenants contained in the Ordinance (defined below) and subject to the matters set forth under "TAX MATTERS" herein, interest an the Certificates for federal income tax purposes under existing statutes, regulations, published rulings. and court decisions (1) will be excludable from the gross income of the owners thereof pursuant to section 103 of the Internal Revenue Cade of 1986, as amended to the date of initial delivery of the Certificates, and (2) will not be included in computing the alternative minimum taxable income of the owners thereof. See "TAX MATTERS" herein. $8,500,000 City of Corpus Christi, Texas (A political subdivision of the State of Texas located in Nueces and San Patricio Counties) Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 Dated Date: August 1, 2009 Due: March 1, as shown on inside cover page The $8,500,000' City of Corpus Christi, Texas Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 (the "Certificates ") will be issued by the City of Corpus Christi, Texas (the "City" or the "Issuer "). The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, including particularly the Certificate of Obligation Act of 1971 (codified at Sections 271.041 through Section 271.065, as amended, Texas Local Government Code) and Section 363.135 as amended, Texas Health and Safety Code, the City's Home Rule Charter, and an ordinance (the "Ordinance ") adopted by the City Council (the "Council ") of the City. In the Ordinance, as permitted by the provisions of Chapter 1371, as amended, Texas Government Code, the Council delegated the authority to certain City officials to execute an Approval Certificate approving the final pricing structure and certain other matters relating to the Certificates. The Certificates are being issued to provide funds to complete public improvements within the City and to pay the costs of' issuance of the Certificates. (See "THE CERTIFICATES — Purposes for the Certificates" herein.) The Certificates are general obligations of the City and ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such interest and principal become due, have been levied and ordered to be levied against all taxable property in the City, and have been pledged for such payment within the limits prescribed by law. The Certificates are additionally secured by and payable from a lien on and pledge of the Pledged Revenues derived from the operation of the City's Solid Waste System, such lien and pledge, however, being subordinate and inferior to the lien on and pledge of the Net Revenues which are pledged to the currently outstanding Subordinate Lien Obligations or that may be pledged to the payment of any Prior Lien Bonds, Junior Lien Bonds, or Additional Subordinate Lien Obligations hereinafter issued by the City. In the Ordinance, the City retains the right to issue Prior Lien Bonds, Junior Lien Bonds, Additional Subordinate Lien Obligations, and Additional Inferior Lien Obligations without limitation as to principal amount but subject to any terms, conditions, or restrictions as may be applicable thereto under law or otherwise. (See "THE CERTIFICATES — General" and "EFFECT OF THE TAX RATE LIMITATION" herein.) Interest on the Certificates will accrue from the dated date thereof specified above and will be payable on Match 1, 2010, and on each September I and March 1 thereafter until maturity or prior redemption. The City intends to utilize the Book - Entry-Only System of The Depository Trust Company, New York, Now York ( "DTC "), but reserves the right on its behalf or on behalf of DTC to discontinue such system. Principal of the Certificates will be payable by the paying agent/registrar (the "Paying Agent/Registrar "), initially [The Bank of New York Mellon Trust Company, N.A., Dallas, Texas]. The definitive Certificates will be registered in the name of Cede & Co., as nominee of DTC. Such Book -Entry-Only System will affect the method and timing of payment and the method of transfer relating to the Certificates. DTC will be responsible for distributing the principal and interest payments to the participating members of DTC and the participating members will be responsible for distributing the payment to the owners of beneficial interest in the Certificates. (See "BOOK -ENTRY -ONLY SYSTEM" herein.) So long as the Certificates are in Book -Entry-Only form, DTC is the securities depository therefor, Cede & Co., as nominee for DTC, will be the registered owner of the Certificates, and references herein to registered owners shall mean Cede & Co. and not the beneficial owners of the Certificates. The City has made applications to municipal bond insurance companies to have the payment of the principal and interest on the Certificates insured by a municipal bond insurance policy. (See "BOND INSURANCE" herein.) SEE FOLLOWING PAGE FOR STATED MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, INITIAL YIELDS, CUSIP NUMBERS AND REDEMPTION PROVISIONS RELATING TO THE CERTIFICATES The Certificates are offered for delivery, when issued, to the initial purchasers thereof named below (the "Underwriters) subject to the approving opinion of the Attorney General of the State of Texas and the approval of certain legal matters by Fulbright & Jaworsld L.LP., Bond Counsel for the City (see "LEGAL MATTERS" and "TAX MATTERS). Certain legal matters will be passed upon for the City by the City Attorney and for the Underwriters by their counsel, Texas. 11 is anticipated That the definitive Certificates will be tendered for delivery through the services of DTC on or about , 2009. • Preliminary, subject to change. ESTRADA HINOJOSA & COMPANY INC. —304— $8,500,000* City of Corpus Christi, Texas (A political subdivision of the State of Texas located in Nueces and San Patricio Counties) Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 CUSIP No. Prefix"): 220112 STATED MATURITY SCHEDULE Stated Stated Maturity Principal Interest Initial CUSIP No. Maturity Principal Interest Initial CUSIP No. (March 1) Amount ($) Rate ( %) Yield (%) Suffix") (March 11 Amount ($) Rate ( %) Yield (%1 Suffix") (Accrued interest from August 1, 2009 to be added) Redemption. The Certificates stated to mature on and after March 1, 20_, are subject to redemption, at the option of the City, in whole or in part, on March I, 20_ or any date thereafter, at the price of par plus accrued interest to the date fixed for redemption. (See "THE CERTIFICATES — Optional Redemption" herein.) of Preliminary, subject to change. CUSP numbers have been assigned to the Certificates by Standard & Poor's CUSIP Service Bureau, a Division of The McGraw Hill Companies, Inc., and are included solely for the convenience of owners of the Certificates. This date is not intended to create a database and does not serve in any as a substitute for the CUSIP Services. None of the City, the Financial Advisor, nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth herein. _i(. -305- USE OF INFORMATION IN OFFICIAL STATEMENT For purposes of compliance with Rule 15c2 -12 of the United States Securities and Exchange Commission (the `SEC "), as amended, and in effect on the date of this Preliminary Official Statement, this document constitutes a Preliminary Official Statement of the City with respect to the Certificates that has been deemed "final" by the City as of its date except for the omission of no more than the information permitted by Rule 15c2 -12. This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy in any jurisdiction to any person to whom it is unlawful to make such offer, solicitation or sale. No dealer, broker, salesman or other person has been authorized to give any information, or to make any representations other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the Financial Advisor, or the Underwriters. This Official Statement is not to be used in connection with an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is Unlawful to make such offer or solicitation. Any information and expressions of opinion herein contained are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described herein since the date hereof. THE UNDERWRITERS HAVE PROVIDED THE FOLLOWING SENTENCE FOR INCLUSION IN THIS OFFICIAL STATEMENT. THE UNDERWRITERS HAVE REVIEWED THE INFORMATION IN THIS OFFICIAL STATEMENT IN ACCORDANCE WITH THEIR RESPONSIBILITIES TO INVESTORS UNDER THE FEDERAL SECURITIES LAWS AS APPLIED TO THE FACTS AND CIRCUMSTANCES OF THIS TRANSACTION, BUT THE UNDERWRITERS DO NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. THE CERTIFICATES ARE EXEMPT FROM REGISTRATION WITH THE SEC AND CONSEQUENTLY HAVE NOT BEEN REGISTERED THEREWITH. THE REGISTRATION, QUALIFICATION, OR EXEMPTION OF THE CERTIFICATES IN ACCORDANCE WITH APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS IN WHICH THE CERTIFICATES HAVE BEEN REGISTERED, QUALIFIED, OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. IN CONNECTION WITH THE OFFERING OF THE CERTIFICATES, THE UNDERWRITERS MAY OVER ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE CERTIFICATES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. None of the City, the Financial Advisor, nor the Underwriters make any representation or warranty with respect to the accuracy, completeness, or adequacy of the information supplied by The Depository Trust Company regarding its Book - Entry-Only System or the provider of the municipal bond insurance, if any, policy relating to the Certificates for use in this Official Statement under the caption "BOND INSURANCE ". -306- TABLE OF CONTENTS STATED MATURITY SCHEDULE III USE OF INFORMATION IN OFFICIAL STATEMENT IV CITY ADMINISTRATION VI SUMMARY STATEMENT VII SELEL I ED FINANCIAL AND TAX DATA VIII INTRODUCTION 1 THE CERTIFICATES.. Purposes of the Certificates 1 General Optional Redemption 2 Notice of Redemption 2 Defeasance 3 Paying Agent/Registrar 4 Successor Paying Agent/Registrar 4 SOURCES AND USES OF FUNDS 4 DEFAULTS AND REMEDIES 4 BOND INSURANCE 5 BOND INSURANCE GENERAL RISKS 5 REGISTRATION, TRANSFER AND EXCHANGE 6 Transfers and Exchanges 6 Future Registration 6 Record Date for Interest Payment 7 Limitation on Transfer of Certificates 7 Replacement Certificates 7 BOOK- ENTRY -ONLY SYSTEM 7 General 7 Use of Certain Terms in Other Sections of this Official Statement 9 AUTHORIZED BUT UNISSUED AD VALOREM TAX SUPPORTED BONDS 9 EFFECT OF THE TAX RATE LIMITATION 9 DEBT INFORMATION 10 Payment Record 10 Authority for Issuance of Debt; Limitations 10 INVESTMENT POLICY 11 Legal Investments 11 Investment Policies 12 Additional Provisions 12 Current Investments* 13 PAYROLL STATISTICS 13 Employee Pension Plan and Benefits 14 Collective Bargaining Agreements 14 ANNEXATION PROGRAM 15 Background 15 LITIGATION 15 GASB 34 STATEMENT 16 LEGAL MATTERS 16 TAX MATTERS 17 Opinion 17 Ancillary Tax Consequences 17 Tax Accounting Treatment of Discount Certificates 18 Tax Accounting Treatment of Premium Certificates 18 LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS 19 RATINGS 19 CONTINUING DISCLOSURE OF INFORMATION19 Annual Reports 19 Material Event Notices 20 Availability of Information from NRMSIRs and SID 20 Limitations and Amendments 20 Compliance with Prior Undertakings 21 REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE 21 UNDERWRITING 21 FINANCIAL ADVISOR 21 INDEPENDENT ACCOUNTANTS 22 MISCELLANEOUS 22 FORWARD LOOKING STATEMENTS 22 AUTHORIZATION OF THE OFFICIAL STATEMENT 22 Appendices: FINANCIAL INFORMATION A -1 CERTAIN INFORMATION RELATING TO THE CITY OF CORPUS CHRISTI B-1 FINANCIAL STATEMENTS OF THE CITY OF CORPUS CHRISTI, TEXAS C -1 FORM OF OPINION OF BOND COUNSEL D -1 85094036.2 -iv- -307- Name Angel R. Escobar Oscar R. Martinez Margie C. Rose Juan "Johnny" Perales Cindy O'Brien Constance P. Sanchez Mary Kay Fischer Armando Chapa Bond Counsel Independent Certified Public Accountants Financial Advisors 85094036.2 City of Corpus Christi, Texas 1201 Leopard Corpus Christi, Texas 78401 (361) 880-3105 CITY ADMINISTRATION ELECTED OFFICIALS Mayor Joe Adame Council Members Kevin Kieschnick, District 1 John Marez, District 2 Priscilla Leal, District 3 Chris Adler, District 4 Larry Elizondo, Sr., District 5 Brent Chesney, At Large Mark Scott, At Large Nelda Martinez, At Large CERTAIN APPOINTED OFFICIALS Position City Manager Assistant City Manager for Public Works Assistant City Manager for Community Services Interim Assistant City Manager for Development Services Interim Assistant City Manager for Administrative Services Interim Director of Financial Services City Attorney City Secretary CONSULTANTS AND ADVISORS Fulbright & Jaworski L.L.P., San Antonio, Texas Collier, Johnson & Woods, P.C., Corpus Christi, Texas M. E. Allison & Co., Inc., San Antonio, Texas For additional information regarding the City, please contact: Ms. Constance P. Sanchez City of Corpus Christi, Texas 1201 Leopard Corpus Christi, Texas 78401 (361) 826-3227 Fax (361) 880 -3601 constancep@cctexas.com Mr. Mark A. Seal M.E. Allison & Co., Inc. 950 East Basse Road, Second Floor or San Antonio, Texas 78209 (210) 930-4000 Fax (210) 930 -4001 mseal @meallison.com -v - -308- SUMMARY STATEMENT The Summary Statement is subject to the more complete information and to the definitions contained or incorporated in this Official Statement. The offering of the Certificates to potential investors is made only by means of this entire Official Statement. No person is authorized to detach this Summary Statement from this Official Statement or to otherwise use it without the entire Official Statement. The Issuer Issue and Date Use of Proceeds Amounts and Maturities Interest Payment Dates Authority for Issuance Optional Redemption Paying Agent/Registrar The Certificates (defined herein) are issued by the City of Corpus Christi, Texas (the "City" or the "Issuer "), a home rule municipality and a body corporate and politic of the State of Texas. The City is issuing its $8,500,000* City of Corpus Christi, Texas Combination Tax and . Limited Pledge Certificates of Obligation, Series 2009 (the "Certificates "), dated as of August 1, 2009. The proceeds of the Certificates will be used to make public improvements within the City and to pay the costs of their issuance. (See "THE CERTIFICATES — Purposes of the Certificates" herein.) The Certificates are stated to mature on March 1 in the years and in the amounts evidenced in the table appearing on the inside cover page of this Official Statement. Interest on the Certificates is payable on March 1 and September 1 of each year, commencing March 1, 2010, until maturity or prior redemption thereof. The Certificates are being issued pursuant to the general laws of the State of Texas, including particularly the Certificate of Obligation Act of 1971 (codified at Sections 271.041 through Section 271.065, as amended, Texas Local Government Code) and Section 363.135, as amended, Texas Health and Safety Code, the City's Home Rule Charter, and an ordinance (the "Ordinance ") adopted by the City Council (the "Council ") of the City. (See "THE CERTIFICATES — Authority for Issuance" herein.) The Certificates stated to mature on and after March 1, 20_, are subject to redemption, at the option of the City, in whole or in part, on March 1, 20_ and any date thereafter, at par plus accrued interest to the date fixed for redemption. The years of maturity of the Certificates called for redemption shall be selected by the City. If less than all of the Certificates are redeemed within a stated maturity at any time, the Certificates to be redeemed shall be selected by the Paying Agent/Registrar for the Certificates, at random and by lot within any stated maturity. The initial paying agent /registrar for the Certificates is [The Bank of New York Mellon Trust Company, N.A., Dallas, Texas]. The City intends to use the Book - Entry-Only System of The Depository Trust Company, New York, New York. (See "BOOK - ENTRY -ONLY SYSTEM" herein.) ' Preliminary, subject to change. 85094036.2 -vi- -309- Security for Payment Principal of and interest on the Certificates will be payable from and secured by the receipts from an annual ad valorem tax levied on all taxable property within the City, within the limits prescribed by law. The Certificates are additionally secured by and payable from a lien on and pledge of the Pledged Revenues derived from the operation of the City's Solid Waste System, such lien and pledge, however, being subordinate and inferior to the lien on and pledge of the Net Revenues which are pledged to the currently outstanding Subordinate Lien Obligations or that may be pledged to the payment of any Prior Lien Bonds, Junior Lien Bonds, or Additional Subordinate Lien Obligations hereinafter issued by the City. In the Ordinance, the City retains the right to issue Prior Lien Bonds, Junior Lien Bonds, Additional Subordinate Lien Obligations, and Additional Inferior Lien Obligations without limitation as to principal amount but subject to any terms, conditions, or restrictions as may be applicable thereto under law or otherwise. (See "THE CERTIFICATES — Security for the Certificates" and "EFFECT OF THE TAX RATE LIMITATION" herein.) Bond Insurance The City has made applications to municipal bond insurance companies to have the payment of the principal and interest on the Certificates insured by a municipal bond insurance policy. (See "BOND INSURANCE" herein.) Ratings The City has made applications for contract ratings on the Certificates to Moody's Investors Service, Inc. ( "Moody's "), Standard & Poor's Rating Services, a Division of The McGraw -Hill Companies, Inc. ("S&P"), and Fitch Ratings ( "Fitch "). The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings on the Certificates will continue for any given period of time or that they will not be revised downward or withdrawn entirely if in the judgment of these companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Certificates. Future Debt Issues Except for possible refundings of outstanding indebtedness for savings, the City does not anticipate the issuance of any additional limited tax indebtedness within the next twelve months. Payment Record The City has not defaulted on the payment of its bonded indebtedness in over 70 years. Delivery When issued, anticipated to occur on or about , 2009. SELECTED FINANCIAL AND TAX DATA 2008 Net Taxable Assessed Valuation (As of August 1, 2008) (100% of Market Value) $13,813,355,014 Total Tax Supported Debt Outstandingttl Less: Self Supporting Debt Applicable Interest and Sinking Fund NET DEBT $ Ratio Net Debt to 2008 Net Taxable Assessed Valuation Net Debt Per Capita (2008 Population Estimate — 297,447) $ Average Current Tax Collections Past Five Years 95.60% Average Total Tax Collections Past Five Years 98.26% tm Adjusted to include the Certificates; preliminary, subject to change. See Page A -1 for more information. 85094036.2 - Vii - -310- 85094036.2 [This page intentionally left blank.] - viii - -311- PRELIMINARY OFFICIAL STATEMENT $8,500,000` City of Corpus Christi, Texas (A political subdivision of the State of Texas located in Nueces and San Patricio Counties) Combination Tax and Limited Pledge Certificates of Obligation, Series 2009 INTRODUCTION This Official Statement of the City of Corpus Christi, Texas (the "City ", the "Issuer ", or "Corpus Christi ") is provided to furnish information in connection with the sale of the City of Corpus Christi, Texas Combination Tax and Limited Pledge Certificates of Obligation, Series 2009, in the aggregate principal amount of $8,500,000* (the "Certificates "). Corpus Christi is a home rule municipality and a body corporate and politic existing and operating under the laws of the State of Texas, including its duly adopted Home Rule Charter (the "Charter "). The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, including particularly Certificate of Obligation Act of 1971 (codified at Sections 271.041 through 271.065, as amended, Texas Local Government Code) and Section 363.135, as amended, Texas Health & Safety, the Charter, and an ordinance (the "Ordinance ") adopted by the City Council (the "City Council" or the "Council ") of the City on June 30, 2009. In the Ordinance, and as permitted by the provisions of Chapter 1371, as amended, Texas Government Code, the City Council delegated the authority to certain City officials to execute an Approval Certificate approving the final pricing structure and certain other matters relating to the Certificates. Capitalized terms used in this Official Statement have the same meanings assigned to such term in the Ordinance, except as otherwise indicated herein. This Official Statement contains a description of the Certificates and certain other information about the City and its finances. All descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document. Copies of such documents may be obtained from the City at 1201 Leopard, Corpus Christi, Texas 78401 and, during the offering period, from the City's Financial Advisor, Mark Seal, M.E. Allison & Co., Inc. 950 East Basse Road, Second Floor, San Antonio, Texas 78209, Telephone (210) 930-4000, or from Constance Sanchez, Interim Director of Financial Services, City of Corpus Christi, 1201 Leopard, Corpus Christi, Texas 78401, telephone (361) 826 -3227, by electronic mail or upon payment of reasonable copying, mailing, and handling charges. This Official Statement speaks only as to its date, and the information contained herein is subject to change. Copies of the final Official Statement pertaining to the Certificates will be deposited with the Municipal Securities Rulemaking Board, 1900 Duke Street, Suite 600, Alexandria, Virginia 22314. See 'CONTINUING DISCLOSURE OF INFORMATION" for a description of the City's undertaking to provide certain information on a continuing basis. THE CERTIFICATES Purposes of the Certificates The Certificates are being issued to provide funds (1) to make permanent public improvements within the City, including constructing street, curb, gutters, and sidewalk improvements (including utilities repair, replacement and relocation) and drainage incidental thereto relating to Holly Road and the Rodd Field Public Improvement District and acquiring, purchasing, constructing, renovating, enlarging, and improving Bayfront Development Implementation Plan Phase 1 (Shoreline Realignment Phase 1) and (2) to pay the costs of issuance of the Certificates. General The Certificates are general obligations of the City, payable from its collection of an ad valorem tax levied, within the legal limitations imposed by law, upon all taxable property located in the City. The Certificates are additionally secured by and payable from a lien on and pledge of the Pledged Revenues derived from the operation of the City's Solid Waste System, such lien and pledge, however, being subordinate and inferior to the lien on and pledge of the • Preliminary, subject to change. 85094036.2 -312- Net Revenues which are pledged to the currently outstanding Subordinate Lien Obligations or that may be pledged to the payment of any Prior Lien Bonds, Junior Lien Bonds, or Additional Subordinate Lien Obligations hereinafter issued by the City. In the Ordinance, the City retains the right to issue Prior Lien Bonds, Junior Lien Bonds, Additional Subordinate Lien Obligations, and Additional Inferior Lien Obligations without limitation as to principal amount but subject to any terms, conditions, or restrictions as may be applicable thereto under law or otherwise. (See "EFFECT OF THE TAX RATE LIMITATION' herein and "FINANCIAL INFORMATION — AD VALOREM TAXES" attached hereto as Appendix A). The Certificates will be dated August 1, 2009 and will be issued in principal denominations of $5,000 or any integral multiple thereof. The Certificates are general obligations of the City and ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such interest and principal become due, have been levied and ordered to be levied against all taxable property in the City, and have been pledged for such payment, within the limits prescribed by law. (See "EFFECT OF THE TAX RATE LIMITATION" and "Appendix A — Ad Valorem Taxes" for further discussion and information relating to ad valorem tax pledges in support of the Certificates.) The Certificates bear interest from such date at the stated interest rates indicated on the inside cover page hereof. Interest on the Certificates will be calculated on the basis of a 360 -day year of twelve 30 -day months, and will be payable an March 1, 2010 and each September 1 and March 1 thereafter, until the earlier of maturity or redemption. Interest on the Certificates will be calculated on the basis of a 360 -day year consisting of twelve 30 -day months. The City intends to utilize the Book -Entry -Only System of The Depository Trust Company ("DTC"), but reserves the right on its behalf or behalf of DTC to discontinue such system. Principal of the Certificates will be payable by the paying agent/registrar, initially [The Bank of New York Mellon Trust Company, N.A. (the "Paying Agent/Registrar "), through its offices located in Dallas, Texas] (the "Designated Trust Office "), to Cede & Co., as nominee of DTC. Such Book -Entry-Only System will affect the method and timing of payment and the method of transfer. DTC will be responsible for distributing the principal and interest payments to the participating members of DTC and the participating members will be responsible for distributing the payment of the owners of beneficial interest in the Certificates. (See "BOOK- ENTRY -ONLY SYSTEM" herein.) So long as the Certificates are in Book -Entry-Only form, and DTC is the securities depository therefor, Cede & Co., as nominee of DTC, will be the registered owner of the Certificates and references herein to the holders of the Certificates or registered owners shall mean Cede & Co. and not the beneficial owners of the Certificates. Interest on the Certificates will be payable by check, dated as of the interest payment date and mailed by the Paying Agent/Registrar to registered owners as shown on the records of the Paying Agent/Registrar on the Record Date (defined herein), or, by such other customary banking arrangements, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, a registered owner. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the city where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. Optional Redemption The Certificates maturing on and after March 1, 20 are subject to redemption, at the option of the City, at the par value thereof plus accrued interest, in whole or in part, in the principal amount of $5,000 or any integral multiple thereof, on March 1, 20_, and on any date thereafter. The years of maturity of the Certificates called for redemption shall be selected by the City. If less than all of the Certificates are redeemed within a stated maturity at any time, the Certificates to be redeemed shall be selected by the Paying Agent/Registrar at random and by lot or other customary method in multiples of $5,000 within any stated maturity. Notice of Redemption Not less than 30 days prior to a redemption date for the Certificates, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each registered owner of a Certificate to be redeemed, in whole or in part, at the address of the Holder appearing on the registration books relating to the Certificates kept by the Paying Agent/Registrar (the "Security Register ") at the close of business on the business day next preceding the date of mailing such notice. ANY NOTICE OF REDEMPTION SO MAILED SHALL BE CONCLUSIVELY PRESUMED TO HAVE BEEN DULY GIVEN IRRESPECTIVE OF WHETHER ONE OR MORE HOLDERS OF CERTIFICATES FAILED TO RECEIVE SUCH NOTICE. 85094036.2 -313- All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the designated corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the registered owner. If a Certificate is subject by its terms to redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as provided in the Ordinance, such Certificate (or the principal amount thereof to be redeemed) so called for redemption shall become due and payable, and on the redemption date designated in such notice, interest on said Certificate (or the principal amount thereof to be redeemed) called for redemption shall cease to accrue and such Certificate shall not be deemed to be Outstanding. The Paying Agent/Registrar and the City, so long as a Book -Entry -Only System is used for the Certificates, will mail any notice of redemption, notice of proposed amendment to the Ordinance or other notices with respect to the Certificates only to DTC. Any failure by DTC to advise any DTC participant, or of any DTC participant or indirect participant to notify the beneficial owner, shall not affect the validity of the redemption of the Certificates called for redemption or any other action premised on any such notice. Redemption of portions of the Certificates held by the City will reduce the outstanding principal amount of such Certificates held by DTC. In such event, DTC may implement, through its Book- Entry-Only System, a redemption of such Certificates held for the account of DTC participants in accordance with its rules or other agreements with DTC participants and then DTC participants and indirect participants may implement a redemption of such Certificates from the beneficial owners. Any such selection of Certificates to be redeemed will not be govemed by the Ordinance and will not be conducted by the City or the Paying Agent/Registrar. Neither the City nor the Paying Agent/Registrar will have any responsibility to DTC participants, indirect participants or the persons for whom DTC participants act as nominees, with respect to the payments on the Certificates or the providing of notice to DTC participants, indirect participants, or beneficial owners of the selection of portions of the Certificates for redemption. See `BOOK- ENTRY -ONLY SYSTEM" herein. Defeasance The Ordinance provides for the defeasance of the Certificates when payment of the principal of and premium, if any, on the Certificates, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, redemption, or otherwise) is provided by irrevocably depositing with a paying agent in trust (1) money in an amount sufficient to make such payment and/or (2) Defeasance Securities certified by an independent public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times to insure the availability, without reinvestment, of sufficient, money to make such payment, and all necessary and proper fees, compensation and expenses of the paying agent for the respective series of Certificates. The Ordinance provides that "Defeasance Securities" means (1) direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America, (2) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than "AAA" or its equivalent, and (3) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that are rated as to investment quality by a nationally recognized investment rating firm not less than "AAA" or its equivalent. Upon such deposit as described above, such Certificates shall no longer be regarded to be outstanding or unpaid for purposes of applying any limitation or indebtedness. After firm banking and financial arrangements for the discharge and final payment of the Certificates have been made as described above, all rights of the City to initiate proceedings to call the Certificates for redemption or take any other action amending the terms of the Certificates are extinguished; provided, however, the City has reserved the option, to be exercised at the time of the defeasance of the Certificates, to call for redemption at an earlier date those Certificates which have been defeased to their maturity date, if the City (i) in the proceedings providing for the firm banking and financial arrangements, expressly reserves the right to call the Certificates for redemption, (ii) gives notice of the reservation of that right to the owners of the Certificates immediately following the making of the firm banking and financial arrangements, and (iii) directs that notice of the reservation be included in any redemption notices that it authorizes. 85094036.2 -314- Paying Agent/Registrar The principal of the Certificates will be paid to the registered owner at maturity or prior redemption upon presentation to the Paying Agent/Registrar, which initially is [The Bank of New York Mellon Trust Company, N.A.], at its Designated Trust Office. Interest on the Certificates will be paid to registered owners shown on the Security Registrar on the Record Date, and such interest will be paid by check sent by mail to the address of such registered owner appearing on the Security Register or by such other customary banking arrangements acceptable to the Paying Agent/Registrar requested by, and at the risk and expense of, the registered owner. Successor Paying Agent/Registrar The City reserves the right to replace the Paying Agent/Registrar. If the Paying Agent/Registrar is replaced by the City, the new Paying Agent/Registrar shall accept the previous Paying Agent/Registrar's records and act in the same capacity as the previous Paying Agent/Registrar. Any successor Paying Agent/Registrar selected by the City shall be a bank, a trust company, financial institution, or other entity duly qualified and legally authorized to serve and perform the duties of Paying Agent/Registrar for the Certificates. Upon a change in the Paying Agent/Registrar for the Certificates, the City shall promptly cause a written notice thereof to be sent to each registered owner of the Certificates by United States mail, first -class postage prepaid, which notice shall give the address of the new Paying Agent/Registrar. SOURCES AND USES OF FUNDS The proceeds from the sale of the Certificates will be applied as follows: Sources of Funds Principal Amount of Certificates Net Reoffering Premium Accrued Interest Total Sources of Funds Uses of Funds Deposit to the Construction Fund Deposit to Debt Service Fund Issuance Expenses Underwriters' Discount Total Uses of Funds DEFAULTS AND REMEDIES If the City defaults in the payment of principal, interest, or redemption price on the Certificates when due, or if it fails to make payments into any fund or funds created in the Ordinance, or defaults in the observation or performance of any other covenants, conditions, or obligations set for in the Ordinance, the registered owners may seek a writ of mandamus to compel City officials to carry out their legally imposed duties with respect to the Certificates, if there is no other available remedy at law to compel performance of the Certificates or Ordinance and the City's obligations are not uncertain or disputed. The issuance of a writ of mandamus is controlled by equitable principles, so rests with the discretion of the court, but may not be arbitrarily refused. There is no acceleration of maturity of the Certificates in the event of default and, consequently, the remedy of mandamus may have to be relied upon from year to year. The Ordinance does not provide for the appointment of a trustee to represent the interest of the holders of Certificates upon any failure of the City to perform in accordance with the terms of the Ordinance, or upon any other condition and accordingly all legal actions to enforce such remedies would have to be undertaken at the initiative of, and be financed by, the registered owners. On June 30, 2006, the Texas Supreme Court ruled in Tooke v. City ofMexia, 197 S.W.3d 325 (Tex. 2006) that a waiver of sovereign immunity in a contractual dispute must be provided for by statute in "clear and unambiguous" language. Because it is unclear whether the Texas legislature has effectively waived the City's sovereign immunity from a suit for money damages, holders of Certificates may not be able to bring such a suit against the City for breach of the Certificates or the Ordinance. Chapter 1371, as amended, Texas Government Code ( "Chapter 1371 "), which pertains to the issuance of public securities by issuers such as the City, permits the City to waive sovereign immunity in the proceedings authorizing 85094036.2 -315- the issuance of the Certificates. Notwithstanding its reliance upon the provisions of Chapter 1371 in connection with the issuance of the Certificates (as further described under the caption "INTRODUCTION "), the City has not waived the defense of sovereign immunity with respect thereto. Even if a judgment against the City could be obtained, it could not be enforced by direct levy and execution against the City's property. Further, the registered owners cannot themselves foreclose on property within the City or sell property within the City to enforce the tax lien on taxable property to pay the principal of and interest on the Certificates. Furthermore, the City is eligible to seek relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code ( "Chapter 9 "). Although Chapter 9 provides for the recognition of a security interest represented by a specifically pledged source of revenues, the pledge of ad valorem taxes in support of a general obligation of a bankrupt entity is not specifically recognized as a security interest under Chapter 9. Chapter 9 also includes an automatic stay provision that would prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by creditors or holders of Certificates of an entity which has sought protection under Chapter 9. Therefore, should the City avail itself of Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could require that the action be heard in Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad discretionary powers of a Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Counsel will note that all opinions relative to the enforceability of the Ordinance and the Certificates are qualified with respect to the customary rights of debtors relative to their creditors. BOND INSURANCE The City has made applications to municipal bond insurance companies to have the payment of the principal of and interest on the Certificates insured by a municipal bond insurance policy. If the City obtains a commitment from a bond insurance company (the "Insurer ") to provide a municipal bond insurance policy relating to the Certificates (the "Policy "), the City shall notify the Underwriters. The final Official Statement shall disclose, to the extent necessary, any relevant information relating to the Insurer and the Policy. BOND INSURANCE GENERAL RISKS If the City purchases a Policy as described above, the following general municipal bond insurance policy risk factors will apply. In the event of default of the scheduled payment of principal of or interest on the Certificates when all or a portion thereof becomes due, any owner of the Certificates shall have a claim under the Policy for such payments. The payment of principal and interest in connection with mandatory or optional redemption of the Certificates by the City which is recovered by the City from the Beneficial Owners as a voidable preference under applicable bankruptcy law is covered by the Policy; however, such payments will be made by the Insurer at such time and in such amounts as would have been due absence such redemption by the City (unless the Insurer chooses to pay such amounts at an earlier date). Payment of principal of and interest on the Certificates is not subject to acceleration, but other legal remedies upon the occurrence of non - payment do exist (see "DEFAULTS AND REMEDIES "). The Insurer may direct the pursuit of available remedies, and generally must consent to any remedies available to and requested by the Beneficial Owners. Additionally, the Insurer's consent may be required in connection with amendments to the Ordinance. In the event the Insurer is unable to make payment of principal and interest as such payments become due under the Policy, the Certificates are primarily payable from the ad valorem tax levied, within the legal limitations imposed by law, on all taxable property located within the City. In the event the Insurer becomes obligated to make payments with respect to the Certificates, no assurance is given that such event will not adversely affect the market price or the marketability (liquidity) of the Certificates. If insured, the long -tern ratings on the Certificates are dependent in part on the financial strength of the Insurer and its claims paying ability. The Insurer's financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance can be given that the long -term ratings of the Insurer and of the ratings on the Certificates, whether or not subject to the Policy, will not be subject to downgrade and such event could adversely affect the market price or the marketability (liquidity) for the Certificates. See the disclosure described in "RATINGS" herein. The obligations of the Insurer under the Policy are general obligations of the Insurer and in an event of default by the Insurer, the remedies available may be limited by applicable bankruptcy law. None of the City, the Financial 85094036.2 -316- Advisor, nor the Underwriters has made independent investigation into the claims paying ability of the Insurer and no assurance or representation regarding the financial strength or projected financial strength of the Insurer is given. REGISTRATION, TRANSFER AND EXCHANGE Transfers and Exchanges So long as any Certificates remain outstanding, the Paying Agent/Registrar shall keep the Security Register at the Designated Trust Office in which, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the registration and transfer of the Certificates in accordance with the terms of the Ordinance. Each Certificate shall be transferable only upon the presentation and surrender thereof at the Designated Trust Office of the Paying Agent/Registrar, duly endorsed for transfer, or accompanied by an assignment duly executed by the owner or his authorized representative in a form satisfactory to the Paying Agent/Registrar. Upon due presentation and surrender of a Certificate for transfer, the Paying Agent/Registrar is required to authenticate and deliver in exchange therefor, under such reasonable regulations as the Paying Agent/Registrar may prescribe, a new Certificate or Certificates, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity, in the principal amount of $5,000 or any integral multiple thereof, and bearing interest at the same rate as the Certificate or Certificates so presented and surrendered. All Certificates shall be exchangeable upon the presentation and surrender thereof at the Designated Trust Office of the Paying Agent/Registrar for a Certificate or Certificates of the same maturity and interest rate and in any authorized denomination, in such aggregate principal amount as discussed above equal to the unpaid principal amount of the Certificate delivered in accordance with the Ordinance and shall be entitled to the benefits and security of the Ordinance to the same extent as the Certificate or Certificates in lieu of which such Certificate is delivered. The Paying Agent/Registrar may require the owner of any Certificate to pay a sum sufficient to cover any tax or other govemmental charge that may be imposed in connection with the transfer or exchange of such Certificate. Any reasonable standard or customary fee or charge of the Paying Agent/Registrar for a conversion or exchange shall be paid by the one requesting such conversion or exchange, except that the City shall pay such fee or charge in the case of the conversion or exchange of an assigned and transferred Certificate. Future Registration In the event the Book -Entry -Only System should be discontinued, the Certificates may be transferred, exchanged and assigned on the Security Register, only upon presentation and surrender thereof the Paying Agent/Registrar and such transfer or exchange of the Certificates shall be without expense or service charge to the owner, except for any tax or other governmental charges required to be paid with respect to such registration and transfer. A Certificate may be assigned by the execution of an assignment form on the Certificate or by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. A new Certificate or Certificates will be delivered by the Paying Agent/Registrar in lieu of the Certificates being transferred or exchanged at the corporate trust office of the Paying Agent/Registrar, or sent by United States mail, first -class postage prepaid, to the new registered owner or his assignee. To the extent possible, new Certificates issued in an exchange or transfer of Certificates will be delivered to the contracting party or assignee of the owner in not more than three (3) business days after the receipt of the Certificates to be canceled in the exchange or transfer and the written instrument of transfer or request for exchange duly executed by the owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Certificates registered and delivered in an exchange or transfer shall be in denominations of $5,000 for any one maturity or any integral multiple thereof and for a like aggregate principal amount of the Certificate or Certificates surrendered for exchange or transfer. See `BOOK - ENTRY -ONLY SYSTEM" herein for a description of the system to be utilized initially in regard to ownership and transferability of the Certificates. 85094036.2 -317- Record Date for Interest Payment The record date ( "Record Date ") for determining the party to whom interest on a Certificate is payable on any interest payment date is the fifteenth calendar day of the preceding month, as specified in the Ordinance. In the event of a nonpayment of interest on a scheduled payment date, and for thirty days thereafter, a new record date for such interest payment (a "Special Record Date ") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be fifteen days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. Limitation on Transfer of Certificates Neither the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of Certificates and ending at the close of business on the day of such mailing, or (2) to transfer or exchange any Certificates so selected for redemption when such redemption is scheduled to occur within 30 calendar days. Replacement Certificates The City has agreed to replace mutilated, destroyed, lost, or stolen Certificates upon surrender of the mutilated Certificates to the Paying Agent/Registrar, or receipt of satisfactory evidence of such destruction, loss, or theft, and receipt by the City and Paying Agent/Registrar of security or indemnity as may be required by either of them to hold them harmless. The City may require payment of taxes, govemmental charges, and other expenses in connection with any such replacement. BOOK - ENTRY -ONLY SYSTEM This section describes how ownership of the Certificates is to be transferred and how the principal of, premium, if any, and interest on the Certificates are to be paid to and credited by The Depository Trust Company ( "DTC "), New York, New York, while the Certificates are registered in its nominee name. The information in this section concerning DTC and the Book Entry Only System has been provided by DTC for use in disclosure documents such as this Official Statement. The City and the Underwriters believe the source of such information to be reliable, but takes no responsibility for the accuracy or completeness thereof. The City cannot and does not give any assurance that (1) DTC will distribute payments of debt service on the Certificates, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will distribute debt service payments paid to DTC or its nominee (as the registered owner of the Certificates), or redemption or other notices, to the Beneficial Owners, or that they will do so on a timely basis, or (3) DTC will serve and act in the manner described in this Official Statement. The current rules applicable to DTC are on file with the United States Securities and Exchange Commission, and the current procedures of DTC to be followed in dealing with DTC Participants are on file with DTC. DTC will act as securities depository for the Certificates. The Certificates will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered security certificate will be issued for each maturity of the Certificates, in the aggregate principal amount of each maturity of such issue, and will be deposited with DTC. General DTC, the world's largest securities depository, is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 100 countries that DTC's participants 85094036.2 -318- ( "Direct Participants ") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants "). DTC has Standard & Poor's highest rating: "AAA ". The DTC Rules applicable to its Participants are on file with the United States Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. To facilitate subsequent transfers, all Certificates deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Certificates with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Certificates; DTC's records reflect only the identity of the Direct Participants to whose accounts such Certificates are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Purchases of Certificates under the DTC system must be made by or through Direct Participants, which will receive a credit for the Certificates on DTC's records. The ownership interest of each actual purchaser of each Certificate ( "Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Certificates are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Certificates, except in the event that use of the book -entry system for the Certificates is discontinued. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices will be sent to DTC. If less than all of the Certificates within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Certificates unless authorized by a Direct Participant in accordance with DTC's procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Certificates are credited on the record date (identified in a listing attached to the Omnibus Proxy). Redemption proceeds, principal, and interest payments on the Certificates will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent/Registrar, on payment date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name ", and will be the responsibility of such Participant and not of DTC, the Paying Agent/Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, principal, and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent/Registrar, disbursement of such 85094036.2 -319- payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Certificates at any time by giving reasonable notice to the City or the Paying Agent/Registrar. Under such circumstances, in the event that a successor depository is not obtained, security certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, security certificates will be printed and delivered. The information in this section concerning DTC and DTC's book -entry system has been obtained from DTC, but the City takes no responsibility for the accuracy thereof. Use of Certain Terms in Other Sections of this Official Statement In reading this Official Statement it should be understood that while the Certificates are in the Book- Entry-Only System, references in other sections of this Official Statement to registered owners should be read to include the person for which the Direct or Indirect Participant acquires an interest in the Certificates, but (i) all rights of ownership must be exercised through DTC and the Book -Entry-Only System, and (ii) except as described above, payment or notices that are to be given to registered owners under the Ordinance will be given only to DTC. AUTHORIZED BUT UNISSUED AD VALOREM TAX SUPPORTED BONDS The City voters, at an election held on November4, 2008, authorized an aggregate amount of $153,000,000 in general obligation bonds to finance various permanent improvements throughout the City. On May 27, 2009, the City issued its $88,725,000 General Improvement Bonds, Series 2009 (the "Series 2009 Bonds "), which (upon application of a portion of the net reoffering premium) utilized $90,000,000 of this voted authorization. The following table depicts the purpose of each proposition, the amount of bond authorization granted in each proposition, and the current amount of each proposition issued to date, inclusive of the aforementioned bonds. The City expects to issue the remainder of this voted authorization by , 20 . Purpose of Proposition 1. Street Improvements 2. Fire Station Improvements 3. Police Department Improvements 4. Public Health Rehabilitation 5. Public Facilities Improvements 6. Park and Recreation Improvement 7. Bayfront Development Total Amount of Bond Authorization (1) 104,610,000 6,250,000 3,340,000 1,150,000 3,050,000 21,600,000 13.000.000 53.0 Amount of Authorization Remaining Being Issued ($I Authorization ($1 55,310,000 49,300,000 6,250,000 3,340,000 1,150,000 3,050,000 -- 7,900,000 13,700,000 13,000,000 -- 2Q900.000 6 03. 00.000 In addition to voter - authorized ad valorem tax supported bonds, the City is authorized under Texas law to incur other debt obligations payable from its collection of ad valorem taxes, including certificates of obligation, tax notes, public property finance contractual obligations, and certain types of capital leases. EFFECT OF THE TAX RATE LIMITATION As discussed more specifically elsewhere in this Official Statement, two amendments to the Charter affect management of the City's financial affairs. In 1980, an election was held at which an amendment to the Charter established a 68 cent per $100 tax rate for all purposes (the City would otherwise be permitted by State law to have a tax rate of up to $2.50 per $100 of assessed valuation). In 1993, an election was held at which the citizens of Corpus Christi voted to amend the Charter to provide for the tax rate to increase up to the State limit for voter approved debt authorized after April 4, 1993. In 2001 the City issued $30,800,000 of general obligation bonds to finance various projects that were approved by the citizens of Corpus Christi at an election held on November 7, 2000 and are not 85094036.2 -320- subject to the 68 cent tax rate limit. A portion of those bonds were refunded with proceeds of the City's General Improvement and Refunding Bonds, Series 2005, and such Bonds attributable to such refunding are not subject to the 68 cent tax rate limit. The general obligation bonds described under "AUTHORIZED BUT UNISSUED AD VALOREM TAX SUPPORTED BONDS ", which includes the Series 2009 Bonds, are not subject to the 68 cent tax rate limit. The remaining outstanding tax supported debt, and any currently outstanding certificates of obligation (including the Certificates), are subject to the 68 cent tax rate limit, which is also applicable to the City's operation and maintenance expenditures. As stated above, the Certificates are subject to the 68 cent tax rate limit. See "THE CERTIFICATES - General" herein. The City has, by election under the Texas Tax Code, adopted a $50,000 homestead exemption for disabled taxpayers and for taxpayers over the age of 65. Further, on November 2, 2004, voters of the City, in addition to approving the issuance of $88,725,000 in general obligation debt secured by the ad valorem taxes of the City, approved freezing the ad valorem taxes for citizens 65 or older, or disabled, and their spouses on homesteads owned thereby. The effect of the imposition of the tax freeze has ranged from an ad valorem levy loss of approximately $400,000 in the initial year of implementation of the tax freeze to over $1,500,000 in fiscal year 2007 -2008, but appears to be leveling off somewhat. The City had foreseen and budgeted these ad valorem levy losses each year and believes the existing ad valorem tax rate is sufficient to maintain the current level of operations and should not affect the ability of the City to finance future capital improvements through the issuance of debt secured in whole or in part by a pledge of ad valorem taxes. These provisions affect the City's budgeting and capital improvement program planning functions. In part, as a response to the tax rate limit, the City has maintained its tax rate within a range of $0.590 to $0.644 per $100 in valuation over the last ten fiscal years. The current tax rate is $0.564 per $100 in valuation. The ability to continue to issue the debt necessary to add additional City improvements and to provide other current services within the tax rate limit will depend in part on the growth in the City's ad valorem and sales tax bases over the coming years as well as the ability of City management to continue to provide efficient City services. DEBT INFORMATION Payment Record The City has not defaulted in the payment of the principal of, or interest on, its tax debt obligations within the last seventy years, nor has the City issued any refunding securities for the purpose of preventing a default in the payment of the principal of, or interest on, its tax debt obligations within this period. Authority for Issuance of Debt; Limitations The City is authorized to issue ad valorem tax supported general obligation bonds. A majority vote of the qualified voters is ordinarily required to authorize the issuance of ad valorem tax supported bonds for general improvements. The Certificates are issued pursuant to voted authority. Notes, including bond anticipation notes and commercial paper notes, also may be authorized by a majority vote of the qualified voters in connection with the approval of ad valorem tax supported general improvement bonds. The City is also empowered to issue ad valorem tax supported certificates of obligation for a variety of purposes including purchasing an existing utility and for paying any contractual obligation incurred in the construction of public works or the purchase of land, materials and other supplies or services for the City's needs. Such certificates of obligation may be refunded by tax supported bonds. In addition, the City may issue certificates of obligation with a pledge of both taxes and revenues provided the City otherwise has the right to pledge the revenues involved. The issuance of certificates of obligation does not require voter approval except under certain circumstances. The City may also issue ad valorem tax supported contractual obligations without right of referendum for the purpose of acquiring personal property. The City is also authorized to issue revenue bonds for certain purposes. The authorized purposes include the financing of the water system, wastewater disposal system, gas system, solid waste system, transportation system, civic center, airport and parks. Revenue bond indebtedness is not considered in determining the legal debt margin for ad valorem tax supported bonds. 85094036.2 - 10 - -321- INVESTMENT POLICY Available City funds are invested as authorized by Texas law and in accordance with investment policies approved by the City Council. Both State law and the City's investment policies are subject to change. Legal Investments Under Texas law, the City is authorized to invest in (1) obligations, including letters of credit, of the United States or its agencies and instrumentalities, (2) direct obligations of the State of Texas 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 of and interest on which are unconditionally guaranteed or insured by, or backed by the full faith and credit of the State of Texas or the United States or their respective agencies and instrumentalities, (5) obligations of states, agencies, counties, cities, and other political subdivisions or any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent, (6) certificates of deposit meeting the requirements of Chapter 2256, Texas Govemment Code (the "Public Funds Investment Act ") that are issued by an institution that has its main office or a branch office in the State of Texas and are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by obligations described in clauses (1) through (5) and clause (13) or in any other manner and amount provided by law for City deposits, (7) fully collateralized repurchase agreements that have a defined termination date, are fully secured by obligations described in clause (1) and deposited at the time the investment is made with the City or with a third party selected and approved by the City, and are placed through a primary government securities dealer or a financial institution doing business in the State of Texas, (8) bankers' acceptances with the remaining term of 270 days or less, if the short-term obligations of the accepting bank or its parent are rated at least A -1 or P -I or the equivalent by at least one nationally recognized credit rating agency, (9) commercial paper that is rated at least A -1 or P -1 or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a U.S. or state bank, (10) no -load money market mutual funds registered with and regulated by the United States Securities and Exchange Commission that have a dollar weighted average portfolio maturity of 90 days or less and include in their investment objectives the maintenance of a stable net asset value of $1 for each share, (11) no -load mutual fund registered with the United States Securities and Exchange Commission that: have an average weighted maturity of less than two years; invest exclusively in obligations described in the preceding clauses and clause (13), and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent, (12) public funds investment pools that have an advisory board which includes participants in the pool and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent or no lower than investment grade with a weighted average maturity no greater than 90 days, and (13) bonds issued, assumed or guaranteed by the State of Israel. Texas law also permits the City to invest bond proceeds in a guaranteed investment contract subject to the limitations set forth in the Public Funds Investment Act. Entities such as the City may enter into securities lending programs if (i) the securities loaned under the program are 100% collateralized, a loan made under the program allows for termination at any time and a loan made under the program is either secured by (a) obligations that are described in clauses (1) through (5) and clause (13) above, (b) irrevocable letters of credit issued by a state or national bank that is continuously rated by a nationally recognized investment rating firm at not less than A or its equivalent or (c) cash invested in obligations described in clauses (1) through (5) and clause (13) above, clauses (9) through (11) above, or an authorized investment pool; (ii) securities held as collateral under a loan are pledged to such investing entity or a third party designated such investing entity; (iii) a loan made under the program is placed through either a primary government securities dealer or a financial institution doing business in the State of Texas; and (iv) the agreement to lend securities has a term of one year or less. The City may invest in such obligations directly or through government investment pools that invest solely in such obligations provided that the pools are rated no lower than AAA or AAAm or an equivalent by at least one nationally recognized rating service. The City is specifically prohibited from investing in: (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 and bears no interest; (3) collateralized mortgage obligations that 85094036.2 -322- have a stated final maturity 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. Investment Policies Under Texas law, the City is required to invest its funds in accordance under written investment policies that primarily emphasize safety of principal and liquidity; that address investment diversification, yield, maturity, and the quality and capability of investment management; and that includes a list of authorized investments for City funds, maximum allowable stated maturity of any individual investment and the maximum average dollar- weighted maturity allowed for pool fund groups. All City funds must be invested consistent with a formally adopted "Investment Strategy Statement" that specifically addresses each funds' investment. Each Investment Strategy Statement will describe its objectives conceming: (1) suitability of investment type, (2) preservation and safety of principal, (3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield. Under Texas law, City investments must 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." At least quarterly the investment officers of the City must submit to the City Council an investment report detailing (1) the investment position of the City, (2) that all investment officers jointly prepared and signed the report, (3) the beginning market value, any additions and changes to market value and the ending value of each pooled fund group, (4) the book value and market value of each separately Listed asset at the beginning and end of the reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or pooled fund group for which each individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to (a) adopted investment strategy statements and (b) State law. No person may invest City funds without express written authority from the City Council. Additional Provisions Under Texas law the City is additionally required to (1) annually review its adopted policies and strategies, (2) require any investment officers' with personal business relationships or relative with firms seeking to sell securities to the entity to disclose the relationship and file a statement with the Texas Ethics Commission and the City Council, (3) require the registered principal of firms seeking to sell securities to the City to (a) receive and review the City's investment policy, (b) acknowledge that reasonable controls and procedures have been implemented to preclude imprudent investment activities, and (c) deliver a written statement attesting to these requirements, (4) perform an annual audit of the management controls on investments and adherence to the City's investment policy, (5) provide specific investment training for the Treasurer, Chief Financial Officer and investment officers, (6) restrict reverse repurchase agreements to not more than 90 days and restrict the investments of reverse repurchase agreement funds to no greater than the term of the reverse repurchase agreement, (7) restrict the investment in non -money market mutual funds of any portion of bond proceeds, reserves and funds held for debt service and to no more than 15% of the entity's monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, and (8) require local government investment pools to conform to the new disclosure, rating, net asset value, yield calculation, and advisory board requirements. City policies require investments in accordance with applicable state law. All investments which are authorized by State statute, with the exception of bankers' acceptances, commercial paper, collateralized mortgage obligations, reverse repurchase agreements, no -load money market mutual funds, no -load mutual funds, and bonds issued, assumed or guaranteed by the State of Israel, are acceptable for investment purposes under the City's Statement of Investment Policy. The City generally invests in obligations of the United States or its agencies and instrumentalities. Under Texas law, the City 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 for a term up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or extend such a contract, the City must do so by order, ordinance or resolution. The City has not contracted with, and has no present intention of contracting with, any such investment management firm or the State Securities Board to provide such services. 85094036.2 - 12 - -323- Current Investments* As of , 2009, the following percentages by investment type applied to the City's investable funds, which had an aggregate par value of $ , a market value of $ and a book value of $ . City Portfolio Par Value: Money Market Local Government Investment Pool Bank Certificate of Deposit U. S. Agencies Total Market Value Book Value Market to Book Ratio Weighted Average Maturity Portfolio by Account Type (Par Value) Money Market Local Goverment Investment Pool Bank Certificate of Deposit U.S. Agencies Total • Unaudited As of such date, the market value of such investments (as determined by the City by reference to published quotations, dealer bids, and comparable information) was approximately 100% of book value. No funds of the City are invested in derivative securities, i.e, securities whose rate of return is determined by reference to some other instrument, index, or commodity. Fiscal Year Salaries($) 1997 -98 96,621,593 1998 -99 101,889,392 1999 -00 102,242,291 2000 -01 100,927,146 2001 -02 105,312,317 2002 -03 112,071,665 2003 -04 121,245,107 2004 -05 120,616,280 2005 -06 124,601,361 2006 -07 127,318,989 2007 -08 133,145,260 PAYROLL STATISTICS Social Security and Medicare($) 5,990,993 6,149,968 6,241,322 6,064,690 6,418,618 6,818,824 7,370,874 7,350,960 5,903,267 7,603,602 7,991,390 Texas Municipal Ret. System($) (I) This includes full time and summer employees. 85094036.2 8,805,861 9,019,103 9,026,902 8,686,111 9,826,228 10,241,750 11,386,987 12,827,988 13,853,273 14,372,192 15,603,377 -13- -324- Fireman's Relief and Retirement($) 1,942,873 2,248,927 2,171,942 2,223,410 2,300,476 2,423,671 2,673,855 2,482,092 2,795,774 3,040,260 3,575,262 Total Paid by City as Employer($) 113,361,320 119,307,390 119,682,457 117,901,357 123,857,639 131,555,910 143,176,822 143,277,320 147,153,675 152,335,043 160,315,289 Number of Employees Last Payday of Fiscal Year") 3,584 3,276 3,277 3,278 3,264 3,264 3,317 3,126 3,183 3,217 3,309 Employee Pension Plan and Benefits The City's employees participate in the Texas Municipal Retirement System. This plan, the contributions made to this plan, and the City's unfunded pension fund liability are further described in Note 9 in Appendix C hereof. Post - Employment Health Care Benefits GASB Statement No. 45; Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions (OPEB), established new accounting standards for postretirement benefits. The new standard does not require funding of OPEB expense, but any difference between the annual required contribution (ARC) and the amount funded during the year is required to be recorded in the employer's financial statement as an increase (or decrease) in the net OPEB obligation. The effective date for implementation of GASB 45 by the City of Corpus Christi is August 1, 2007, Accordingly, the City did obtain an actuarial valuation in accordance with GASB 45 standards as of August 1, 2007, and discloses the following: Plan Description and Funding Policy Employees who retire from the City of Corpus Christi, and eligible dependents and survivors, are eligible to continue to participate in the City's health insurance programs at the "blended" employee group rate which is determined annually by the City of Corpus Christi and approved by the City Council. Retirees have 31 days to elect to enroll in the City's self - funded health insurance plan (Citicare, Citicare Public Safety, and Citicare -Fire) in which they were participating at the time of retirement unless otherwise stated in a plan document or collective bargaining agreement. As of July 31, 2008, a total of 562 eligible retirees and dependents were participating in the City's group health program detailed as follows: Citicare 304 Citicare Public Safety 135 Citicare Fire 117 Pending election 6 Total 562 The City provides no funding for any portion of the premiums after retirement. However, the City recognizes that there is an "implicit subsidy" arising as a result of the blended rate premium since retiree health care costs, on average, are higher than active employee healthcare costs. The plan is not accounted for as a trust fund as an irrevocable trust has not been established to fund the plan, The plan does not issue a separate financial report. Annual OPEB Cost and Net OPEB Obligation The City's annual other post - employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and to amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The City's annual OPEB cost for. each plan for the current year is as follows: Citicare Public Citicare ($) Safety ($) Citicare Fire ($) . Total (5) Annual required contribution 3,109,043 1,502,603 1,853,004 6,464,650 Interest on net OPEB obligation --- --- --- --- Annual OPEB cost 3,109,043 1,502,603 1,853,004 6,464,650 Contributions made (pay -as- you -go basis) 628,619 455 812 541,837 1,626,268 Increase in net OPEB obligation 2,480,424 1,046,791 1,311,167 4,838,382 Net OPEB obligation - beginning of year - -- -- -- — Net OPEB obligation - end of year 2,480,424 1,046,791 1,311,167 4,838,382 Collective Bargaining Agreements Under State law, municipal firefighters and police officers may form collective bargaining groups which may negotiate employment contracts on behalf of members of such groups. However, State law forbids such groups 85094036.2 -14- -325— from participating in strikes or other work stoppages. The City's firemen and police are organized in collective bargaining groups and currently are working under a negotiated employment agreement with the City. No other City employees are similarly organized for employment term negotiations. ANNEXATION PROGRAM Background The City has continued to expand its jurisdiction, and thus increase its obligation to provide services and, correspondingly its tax base, by annexing selected adjacent areas. The City may annex additional territory adjoining or lying adjacent to the City by ordinance. The total area of the City is approximately 498 square miles, of which approximately 161 square miles is land area and 337 square miles water area. The areas covered by water require no normal City Services, but do produce considerable revenues from oil and gas properties located therein and allow the City to enforce ordinances regarding uses in the areas. The City has had numerous annexations since its beginning. Significant annexations occurred in 1950 when 92 square miles of water area in Corpus Christi and Nueces Bay were annexed, in 1962 when 48 square miles of land west and south of the City were annexed, in 1966 when 31 square miles of water area in Corpus Christi Bay were annexed and in 1970 when 63 square miles of water area in Corpus Christi Bay and Laguna Madre were annexed. However, four oil companies which owned leases included in the 1970 annexation of bay water areas contended the annexation was not legal. The matter ended up in court and was settled in favor of the City. In December, 1972 an election to re- affirm the annexation of November 1970 was held and carried. On November 18, 1981, the City annexed approximately 3,171 acres (4.95 square miles) of land in addition to fringe area development made up of commercial, industrial and residential subdivisions. On August 9, 1986 an election was defeated to annex more than 60 square miles of Padre and Mustang Islands. The City has already annexed the developed areas of Padre Island bounded by Laguna Madre, Packery Channel, the Gulf of Mexico and the Southern boundary of Nueces County. Through a referendum on April 11, 1989, the City annexed approximately 2,527 acres (3.95 square miles) of land. Changes in the City's Charter have simplified the method by which a municipality may annex land. Under the Charter revisions: "The City shall have the power by ordinance to fix the boundary limits of the city and to provide for the alteration and extension of the boundary limits." From 1990 thru 1995, the City annexed 9,988 acres (approximately 4.95 square miles) of land primarily located south of SPID and east of Staples Street. From 1996 thru 1998, the amount of land annexed by the City was minimal as only 32 acres or .05 square miles of land area was annexed. In 1999, the City initiated annexations for lands adjacent to the northwest portion of the City, and on Mustang and Padre Islands located along the eastern edge of the City. On December 21, 1999, 4,852 acres or 7.58 square miles was annexed into the City. As part of a major annexation program in 2001, the City annexed a total of 15,786 acres (24.7 square miles) effective December 31, 2001. On April 17, 2002 the City annexed 678.39 acres (1.06 square miles) of land. Several existing major resorts and condominiums on Mustang/North Padre Islands were included as part of the areas annexed, resulting in a significant increase in hotel tax revenue collected by the City. Source: City Geographic Information System. Any differences in acreage between the historically adopting annexation ordinance and the annexation figures provided are attributed to the modem methods used by the City's Geographic Information System. These methods include gps (global satellite positioning system), aerial photography, property records, etc. LITIGATION The City is a defendant in various tort claims and lawsuits involving general liability, automobile liability, and various contractual matters. The status of such litigation ranges from early discovery stage to various levels of appeal of judgments both for and against the City. The City intends to defend vigorously against the lawsuits; including the pursuit of all appeals; however, no prediction can be made as of the date hereof, with respect to the liability of the City for such claims or the outcome of such suits. In the opinion of the City Attorney, it is improbable that the lawsuits now outstanding against the City could become final in a timely manner so as to have a material adverse financial impact upon the City. The City provides the following information related to certain lawsuits that do impact the City's combined utility system, the revenues from which secure certain outstanding City indebtedness (but not the Certificates): 85094036.2 -15- -326— 1. Nueces County Water Control and Improvement District No. 4 (located in Port Aransas) has filed a petition challenging the City's wholesale water rate. The challenge is based on alleged flaws in the City's rate methodology in calculating its costs of service. The challenge is also based on disputes over the application of provisions in the City's wholesale water contract with the district and how a fund set up to pay for future capital improvements for the benefit of the district are handled. The City and the District engaged in mediation and arrived at several points of agreement in principle that will resolve this dispute. The agreement is being finalized, and will result in some revisions to the methodology used to calculate utility rates, including additions to operating and capital reserves. 2. San Patricio Municipal Water District and South Texas Water Authority vs. City of Corpus Christi. The case involves a claim by two of the City's wholesale water customers that the City improperly billed the districts for drainage charges in violation of the Texas Municipal Drainage Utility System Act through its water rates. The City has challenged the court's jurisdiction to consider this matter, since it is a water rate appeal within the exclusive jurisdiction of the Texas Commission on Environmental Quality, and is barred by the statute of limitations since it was not filed within the period authorized for water rate appeals. On the date of delivery of the Certificates to the Underwriters, the City will execute and deliver to the Underwriters a certificate to the effect that, except as disclosed herein, no litigation of any nature has been filed or is pending, as of that date, to restrain or enjoin the issuance or delivery of the Certificates or which would affect the provisions made for their payment or security or in any manner question the validity of the Certificates. GASB 34 STATEMENT In June 1999, the Governmental Accounting Standards Board ( "GASB ") issued Statement No. 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Govemments" ( "GASB 34 "). The objective of GASB 34 is to enhance the clarity and usefulness of the general- purpose external financial reports of state and local governments to its citizenry, legislature and oversight bodies, and investors and creditors. The City implemented GASB 34 beginning with its fiscal year ending July 31, 2002. While adoption of GASB 34 altered the presentation of the City's financial information, City management believes that the adoption of GASB 34 did not have any material adverse impact on the City's financial position, results of operation, or cash flows. LEGAL MATTERS The City will furnish the Underwriters with a complete transcript of proceedings incident to the authorization and issuance of the Certificates, including the unqualified approving legal opinion of the Attorney General of the State of Texas to the effect that the Certificates are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the approval of certain legal matters by Bond Counsel, to the effect that the Certificates, issued in compliance with the provisions of the Ordinance, are valid and legally binding obligations of the City and, subject to the qualifications set forth herein under "TAX MATTERS ", the interest on the Certificates is exempt from federal income taxation under existing statutes, published rulings, regulations, and court decisions. In its capacity as Bond Counsel, Fulbright & Jaworski L.L.P., San Antonio, Texas has reviewed the information under the captions "THE CERTIFICATES ", "TAX MATTERS ", "LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS ", "CONTINUING DISCLOSURE OF INFORMATION" (except under the subheading "Compliance with Prior Undertakings" as to which no opinion is expressed), and "REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE" in the Official Statement and such firm is of the opinion that the information relating to the Certificates and the Ordinance contained under such captions is a fair and accurate summary of the information purported to be shown and that the information and descriptions contained under such captions relating to the provisions of applicable state and federal laws are correct as to matters of law. The customary closing papers, including a certificate to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Certificates or which would affect the provisions made for their payment or security, or in any manner questioning the validity of the Certificates will also be furnished. Though it represents the Financial Advisor and the Underwriters from time to time in matters unrelated to the issuance of the Certificates, Bond Counsel has been engaged by and only represents the City in connection with the issuance of the Certificates. The legal fees to be paid Bond Counsel for services rendered in connection with the issuance of Certificates are contingent on the sale and delivery of the Certificates. 85094036.2 - 16 - -327- The legal opinion of Bond Counsel will accompany the obligations deposited with DTC or will be printed on the definitive obligations in the event of the discontinuance of the Book - Entry-Only System. Certain legal matters will be passed upon for the City by the City Attorney and for the Underwriters by their counsel, , Texas, whose fee is contingent on the delivery of the Certificates. The various legal opinions to be delivered concurrently with the delivery of the Certificates express the professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not become an insurer or guarantor of the expression of professional judgment, of the transaction opined upon, or of the future performance of the parties to the transaction, nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. TAX MATTERS Opinion The delivery of the Certificates is subject to the opinion of Fulbright & Jaworski L.L.P., Bond Counsel, to the effect that interest on the Certificates for federal income tax purposes (I) is excludable from the gross income, as defined in section 61 of the Intemal Revenue Code of 1986, as amended to the date hereof (the "Code "), of the owners thereof pursuant to section 103 of the Code and existing regulations, published rulings, and court decisions, and (2) will not be included in computing the alternative minimum taxable income of the owners thereof. The statute, regulations, rulings, and court decisions on which such opinion is based are subject to change. A form of Bond Counsel's opinion appears in Appendix D hereto. In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the City made in certificates pertaining to the use, expenditure, and investment of the proceeds of the Certificates and will assume continuing compliance by the City with the provisions of the Ordinance subsequent to the issuance of the Certificates. The Ordinance contains covenants by the City with respect to, among other matters, the use of the proceeds of the Certificates and the facilities financed therewith by persons other than state or local governmental units, the manner in which the proceeds of the Certificates are to be invested, the periodic calculation and payment to the United States Treasury of arbitrage "profits" from the investment of the proceeds, and the reporting of certain information to the United States Treasury. Failure to comply with any of these covenants may cause interest on the Certificates to be includable in the gross income of the owners thereof from the date of the issuance of the Certificates. Except as described above, Bond Counsel will express no other opinion with respect to any other federal, state or local tax consequences under present law, or proposed legislation, resulting from the receipt or accrual of interest on, or the acquisition or disposition of, the Certificates. Bond Counsel's opinion is not a guarantee of a result, but represents its legal judgment based upon its review of existing statutes, regulations, published rulings and court decisions and the representations and covenants of the City described above. No ruling has been sought from the Internal Revenue Service (the "IRS ") with respect to the matters addressed in the opinion of Bond Counsel, and Bond Counsel's opinion is not binding on the IRS. The IRS has an ongoing program of auditing the tax- exempt status of the interest on municipal obligations. If an audit of the Certificates is commenced, under current procedures the IRS is likely to treat the City as the "taxpayer," and the owners of the Certificates would have no right to participate in the audit process. In responding to or defending an audit of the tax - exempt status of the interest on the Certificates, the City may have different or conflicting interests from the owners of the Certificates. Public awareness of any future audit of the Certificates could adversely affect the value and liquidity of the Certificates during the pendency of the audit, regardless of its ultimate outcome. Ancillary Tax Consequences Prospective purchasers of the Certificates should be aware that the ownership of tax - exempt obligations such as the Certificates may result in collateral federal tax consequences to, among others, financial institutions, property and casualty insurance companies, life insurance companies, certain foreign corporations doing business in the United States, S corporations with subchapter C earnings and profits, owners of an interest in a financial asset securitization investment trust (FASIT), individual recipients of Social Security or Railroad Retirement benefits, individuals otherwise qualifying for the earned income tax credit and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax- exempt 85094036.2 - 17 - -328- obligations. Prospective purchasers should consult their own tax advisors as to the applicability of these consequences to their particular circumstances. Tax Accounting Treatment of Discount Certificates The initial public offering price to be paid for certain Certificates may be less than the amount payable on such Certificates at maturity (the "Discount Certificates "). An amount equal to the difference between the initial public offering price of a Discount Certificate (assuming that a substantial amount of the Discount Certificates of that maturity are sold to the public at such price) and the amount payable at maturity constitutes original issue discount to the initial purchaser of such Discount Certificates. A portion of such original issue discount, allocable to the holding period of a Discount Certificate by the initial purchaser, will be treated as interest for federal income tax purposes, excludable from gross income on the same terms and conditions as those for other interest on the Certificates. Such interest is considered to be accrued actuarially in accordance with the constant interest method over the life of a Discount Certificate, taking into account the semiannual compounding of accrued interest, at the yield to maturity on such Discount Certificate and generally will be allocated to an initial purchaser in a different amount from the amount of the payment denominated as interest actually received by the initial purchaser during his taxable year. However, such accrued interest may be required to be taken into account in determining the alternative minimum taxable income of a corporation, for purposes of calculating a corporation's alternative minimum tax imposed by section 55 of the Code, and the amount of the branch profits tax applicable to certain foreign corporations doing business in the United States, even though there will not be a corresponding cash payment. In addition, the accrual of such interest may result in certain other collateral federal income tax consequences to, among others, financial institutions, property and casualty insurance companies, life insurance companies, S corporations with subchapter C earnings and profits, owners of an interest in a FASIT, individual recipients of Social Security or Railroad Retirement benefits, individuals otherwise qualifying for the earned income tax credit, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax- exempt obligations. In the event of the sale or other taxable disposition of a Discount Certificate prior to maturity, the amount realized by such owner in excess of the basis of such Discount Certificate in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Discount Certificate was held) is includable in gross income. Owners of Discount Certificates should consult with their own tax advisors with respect to the determination for federal income tax purposes of accrued interest upon disposition of Discount Certificates and with respect to the state and local tax consequences of owning Discount Certificates. It is possible that, under applicable provisions governing determination of state and local income taxes, accrued interest on the Discount Certificates may be deemed to be received in the year of accrual even though there will not be a corresponding cash payment. Tax Accounting Treatment of Premium Certificates The initial public offering price to be paid for certain Certificates may be greater than the stated redemption price on such Certificates at maturity (the "Premium Certificates "). An amount equal to the difference between the initial public offering price of a Premium Certificate (assuming that a substantial amount of the Premium Certificates of that maturity are sold to the public at such price) and its stated redemption price at maturity constitutes premium to the initial purchaser of such Premium Certificates. The basis for federal income tax purposes of a Premium Certificate in the hands of such initial purchaser must be reduced each year by the amortizable bond premium, although no federal income tax deduction is allowed as a result of such reduction in basis for amortizable bond premium with respect to the Premium Certificates. Such reduction in basis will increase the amount of any gain (or decrease the amount of any loss) to be recognized for federal income tax purposes upon a sale or other taxable disposition of a Premium Certificate. The amount of premium which is amortizable each year by an initial purchaser is determined by using such purchaser's yield to maturity. Purchasers of the Premium Certificates should consult with their own tax advisors with respect to the determination of amortizable bond premium on Premium Certificates for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Premium Certificates. 85094036.2 - 18 - -329- LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS Section 1201.041 of the Public Securities Procedures Act (Chapter 1201, Texas Government Code) and Section 271.052, as amended, Texas Local Government Code provide that the Certificates are negotiable instruments governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized investments for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political subdivisions or public agencies of the State of Texas. With respect to investment in the Certificates by municipalities or other political subdivisions or public agencies of the State of Texas, the Public Funds Investment Act requires that the Certificates be assigned a rating of at least "A" or its equivalent as to investment quality by a national rating agency. See "RATINGS" herein. In addition, various provisions of the Texas Finance Code provide that, subject to a prudent investor standard, the Certificates are legal investments for state banks, savings banks, trust companies with at least $1 million of capital, and savings and loan associations. The Certificates are eligible to sure deposits of any public funds of the State, its agencies, and its political subdivisions, and are legal security for those deposits to the extent of their market value. The City has made no investigation of other laws, rules, regulations or investment criteria which might apply to such institutions or entities or which might limit the suitability of the Certificates for any of the foregoing purposes or limit the authority of such institutions or entities to purchase or invest in the Certificates for such purposes. The City has made no review of laws in other states to determine whether the Certificates are legal investments for various institutions in those states. RATINGS The City has made applications for contract ratings on the Certificates to Moody's Investors Service, Inc. ( "Moody's "), Standard & Poor's Rating Services, a Division of The McGraw -Hill Companies, Inc. ( "S&P "), and Fitch Ratings ("Fitch"). An explanation of the significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that the ratings of the Certificates will continue for any given period of time or that they will not be revised downward or withdrawn entirely if in the judgment of these companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Certificates. CONTINUING DISCLOSURE OF INFORMATION In the Ordinance, the City has made the following agreements for the benefit of the holders and beneficial owners of the Certificates. The City is required to observe the agreement for so long as it remains obligated to advance funds to pay the Certificates. Under the agreement, the City will be obligated to provide certain updated financial information and operating data annually, and timely notice of specified material events, to certain information vendors. This information will be available to securities brokers and others who subscribe to receive the information from the vendors. Annual Reports The City will provide certain updated financial information and operating data to certain information vendors annually. The information to be updated includes all quantitative financial information and operating data with respect to the City of the general type included in Appendix A to this Official Statement ( "Financial Information ") under the headings "DEBT PAYABLE FROM TAXES ", "GENERAL REVENUES ", "GENERAL EXPENSES ", "AD VALOREM TAXES ", "FIVE YEAR OPERATING STATEMENT FOR SOLID WASTE ", "MUNICIPAL HOTEL OCCUPANCY TAXES ", and "THE TAX INCREMENT FINANCING ACT", and in Appendix C. The City will update and provide this information within six months after the end of each fiscal year ending in or after 2009. The City will provide the updated information to each nationally recognized municipal securities information repository ( "NRMSIR ") and to any state information depository ( "SID") that is designated by the State of Texas and approved by the staff of the United States Securities and Exchange Commission (the "SEC "). The City may provide updated information in full text or may incorporate by reference certain other publicly available documents, as permitted by SEC Rule 15c2 -12. The updated information will include audited financial statements, if the City commissions an audit and it is completed by the required time. If audited financial statements are not available by the required time, the City will provide unaudited financial statements by the required time, and 85094036.2 - 19 - -330- will provide audited financial statements when and if the audit report becomes available. Any such financial statements will be prepared in accordance with the accounting principles described in Appendix C, the Ordinance or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation. The City's current fiscal year end is July 31. Accordingly, it must provide updated information by January 31 of the following year, unless the City changes its fiscal year. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change. Material Event Notices The City will also provide timely notices of certain events to certain information vendors. The City will provide notice of any of the following events with respect to the Certificates, if such event is material to a decision to purchase or sell Certificates: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax- exempt status of the Certificates; (7) modifications to rights of holders of the Certificates; (8) Certificate calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Certificates; and (11) rating changes. Neither the Certificates nor the Ordinance make any provision for debt service reserves, credit enhancement, or liquidity enhancement. In addition, the City will provide timely notice of any failure by the City to provide information, data, or financial statements in accordance with its agreement described above under "Annual Reports ". The City will provide each notice described in this paragraph to any SID and to either each NRMSIR or the Municipal Securities Rulemaking Board ( "MSRB "). Any such filing may be made by the City solely by transmitting such filing to the Municipal Advisory Council of Texas (the "MAC ") as provided at http: / /www.DisclosureUSA.org, unless the SEC has withdrawn the interpretive advice stated in its letter to the MAC dated September 7, 2004. Availability of Information from NRMSIRs and SID The City has agreed to provide the foregoing information only to NRMSIRs and any SID. Prior to July 1, 2009, the information will be available to holders of Certificates only if the holders comply with the procedures and pay the charges established by such information vendors or obtain the information through securities brokers who do so. Effective July 1, 2009, all such information must be filed with the MSRB, rather than the current NRMSIRs. The MSRB intends to make the information available to the public without charge through an internet portal. The MAC has been designated by the State of Texas and approved by the SEC staff as.a qualified SID. The address of the MAC is 600 West 8th Street, Post Office Box 2177, Austin, Texas 78768 -2177, and its telephone number is 512/476 -6947. The MAC has also received SEC approval to operate, and has begun to operate, a "central post office" for information filings made by municipal issuers, such as the Authority. A municipal issuer may submit its information filings with the central post office, which then transmits such information to the NRMSIRs and the appropriate SID for filing. This central post office can be accessed and utilized at www.DisclosureUSA.org ( "DisclosureUSA "). The City may utilize DisclosureUSA for the filing of information relating to the Certificates. Limitations and Amendments The City has agreed to update information and to provide notices of material events only as described above. The City has not agreed to provide other information that may be relevant or material to a complete presentation of its financial results of operations, condition, or prospects or agreed to update any information that is provided, except as described above. The City makes no representation or warranty concerning such information or concerning its usefulness to a decision to invest in or sell Certificates at any future date. The City disclaims any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from any statement made pursuant to its agreement, although holders or registered owners of Certificates may seek a writ of mandamus to compel the City to comply with its agreement. The City may amend its continuing disclosure agreement to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if 85094036.2 -20- -331- the agreement, as amended, would have permitted an underwriter to purchase or sell Certificates in the offering described herein in compliance with SEC Rule 15c2 -12 and either the holders of a majority in aggregate principal amount of the outstanding Certificates consent or any person unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment will not materially impair the interests of the holders or beneficial owners of the Certificates. If the City amends its agreement, it must include with the next financial information and operating data provided in accordance with its agreement described above under "Annual Reports" an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of information and data provided. The City may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of SEC Rule 15c2 -12 or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Certificates, respectively, in the primary offering of the Certificates. Compliance with Prior Undertakings During the past five years, the City has complied in all material respects with continuing disclosure agreements made by it in accordance with SEC Rule 15c2 -I2 . REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE The sale of the Certificates has not been registered under the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a)(2); and the Certificates have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Certificates been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Certificates under the securities laws of any jurisdiction in which the Certificates may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Certificates shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. UNDERWRITING Estrada Hinojosa & Company, Inc., Dallas, Texas, as the authorized representative of a group of underwriters, has agreed, subject to certain conditions, to purchase the Certificates from the City at the prices indicated on the inside front cover hereof, less an underwriting discount of $ , plus accrued interest on the Certificates from their dated date to their date of initial delivery to the Underwriters. The Underwriters' obligation is subject to certain conditions precedent. The Underwriters will be obligated to purchase all of the Certificates if any Certificates are purchased. The Certificates may be offered and sold to certain dealers and others at prices lower than such public offering price, and such public prices may be changed from time to time, by the Underwriters. Effective as of September 30, 2008, MSRB rules require underwriter participation with the Depository Trust and Clearing Corporation's ( "DTCC ") New Issue Information Dissemination System ( "NIIDS "). The rule change consists of an amendment of Rule G -8, Books and Records, Rule G -9, Preservation of Records, and Rule G -34, CUSIP Numbers and New Issue Requirements. The rule change is designed to improve new issue trade reporting by accelerating the timing for CUSIP number assignment, and, with the exception of new issues of short-term instruments with less than nine months in effective maturity, requiring underwriters to: (1) submit certain information about a new issue of municipal securities to NIIDS within set timeframes and (2) set and disseminate a "Time of First Execution" that allows time for market participants to access necessary information in preparation for trade reporting prior to beginning trade executions in the issue. The Underwriters have provided the following sentence for inclusion in this Official Statement. The Underwriters have reviewed the information in this Official Statement in accordance with their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. FINANCIAL ADVISOR M.E. Allison & Co., Inc. (the "Financial Advisor ") is employed by the City in connection with the issuance of the Certificates and in such capacity, has assisted the City in compiling documents related thereto. Although the 85094036.2 - 21 - -332- Financial Advisor assisted in drafting this Official Statement, the Financial Advisor has not independently verified all of the data contained in it or conducted a detailed investigation of the affairs of the City to determine the accuracy or completeness of this Official Statement. No person should presume that the limited participation of the Financial Advisor means that the Financial Advisor assumes any responsibility for the accuracy or completeness of any of the information contained in the Official Statement. The fee of the Financial Advisor for services rendered is contingent upon the issuance and sale of the Certificates. The Financial Advisor has reviewed the information in this Official Statement in accordance with its responsibilities to the City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy or completeness of such information. INDEPENDENT ACCOUNTANTS This Official Statement includes the combined financial statements of the City for the fiscal year ended July 31, 2008. These combined financial statements have been examined by Collier, Johnson & Woods, P.C., Independent Certified Public Accountants, as stated in their report set forth in Exhibit C to this Official Statement. The City has not requested Collier, Johnson & Woods to reissue its audited financial statements and Collier, Johnson & Woods has not performed any procedures in connection with this Official Statement. MISCELLANEOUS All information contained in this Official Statement is subject, in all respects, to the complete body of information contained in the original sources thereof and no guaranty, warranty or other representation is made concerning the accuracy or completeness of the information herein. In particular, no opinion or representation is rendered as to whether any projection will approximate actual results, and all opinions, estimates and assumptions, whether or not expressly identified as such, should not be considered statements of fact. No person has been authorized to give any information or to make any representations other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell or solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer of solicitation. FORWARD LOOKING STATEMENTS The statements contained in this Official Statement, and in any other information provided by the City, that are not purely historical, are forward - looking statements, including statements regarding the City's expectations, hopes, intentions, or strategies regarding the future. Readers should not place undue reliance on forward- looking statements. All forward- looking statements included in this Official Statement are based on information available to the City on the date hereof, and the City assumes no obligation to update any such forward - looking statements. It is important to note that the City's actual results could differ materially from those in such forward- looking statements. The forward- looking statements herein are necessarily based on various assumptions and estimates and are inherently subject to various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in social, economic, business, industry, market, legal and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and competitors, and legislative, judicial and other governmental authorities and officials. Assumptions related to the foregoing involve judgments with respect to, among other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the City. Any of such assumptions could be inaccurate and, therefore, there can be no assurance that the forward- looking statements included in this Official Statement would prove to be accurate. AUTHORIZATION OF THE OFFICIAL STATEMENT The Official Statement will be approved as to form and content and the use thereof in the offering of the Certificates will be authorized, ratified and approved by the City Council on the date of sale, and the Underwriters will be 85094036.2 -22- -333— furnished, upon request, at the time of payment for and the delivery of the Certificates, a certified copy of such approval, duly executed by the proper officials of the City. The Ordinance will also approve the form and content of this Official Statement, and any addenda, supplement or amendment thereto issued on behalf of the City, and authorize its further use in the reoffering of the Certificates by the Underwriters. • r ■ This Official Statement has been approved by the City Council of the City for distribution in accordance with the provisions of the United States Securities and Exchange Commission's rule codified at 17 C.F.R. Section 240.15c2 -12. ATTEST: /s/ City Secretary 85094036.2 By: /s/ -23- -334— Mayor APPENDIX A FINANCIAL INFORMATION DEBT PAYABLE FROM TAXES Ad Valorem Tax - Supported Debt The table below shows the amount of direct tax supported debt of the City as of , 2008 and adjusted to include the Certificates. 2008 Assessed Valuation (100% of Market Value) $ 16,220,116,351 Less: Exemptions 2.406.781,337 Net Taxable Assessed Valuation(I) $ 13.813.355.014 General Improvement Bonds Outstandingal $ 152,030,000 Combination Tax and Revenue Certificates of Obligations Outstandingm 90,410,000 Tax Notes 22,260,000 State Infrastructure Bank Notes 3,250,000 The Certificates(3) 8.500.000 Total Indebtedness Payable from Taxes $ 356,675,000 Less: Self - Supporting Debt') $ 106,884,957 Applicable Interest & Sinking Funds(5) 10.008.677 116.893.634 Net Indebtedness Payable from Taxes $ 9366 Ratio Total Debt to 2008 Net Taxable Assessed Valuation 2.58% Ratio Net Debt to 2008 Net Taxable Assessed Valuation 1.74% 2008 Estimated City Population 297,447 Total Debt Per Capita $1,199 Net Debt Per Capita $ 806 m Pursuant to authority permitted by Section 1 -b, Article VIII of the State Constitution, the City has granted an exemption of $50,000 of market valuation to the residence homestead of property owners over 65 years of age and an exemption of $50,000 of market valuation for disabled property owners. Also, the legislature, pursuant to a constitutional amendment and Section 11.22 of the Property Tax Code, mandated an additional property tax exemption for disabled veterans or the surviving spouse or children of a deceased veteran who died while on active duty in the armed tomes. The exemption from taxation applies to either real or personal property with the amount of assessed valuation exempted ranging from $1,500 to $3,000, depending on the amount of disability or whether the exemption is applicable to surviving spouse or children. Starting in tax year 1996, the exemption increased in range from $5,000 to $12,000 of assessed value. Additionally, State law provides that an eligible owner of agricultural land or timberland may apply to have such property appraised on the basis of productivity value or on the basis of market value, whichever is less. A 1981 constitutional amendment provides local governments the option of granting homestead exemptions of up to 30% of market value for the 1985 through 1987 tax years, and up to 20% of market value thereafter. Minimum exemption is $5,000. Since tax year 1982, the City has granted a homestead exemption of 10% of market value • or $5,000, whichever is greater. The constitutional amendment further provides that taxes may continue to be levied against the value of the homestead exemption where ad valorem taxes have been previously pledged for the payment of debt, if cessation of the levy would impair the obligation of the contract by which the debt was created. The appraisal of property within the City is the responsibility of the Nueces County Appraisal District (the "Appraisal District'). The Appraisal District is required under the Property Tax Code to assess all property within the Appraisal District on the basis of 100% of its value and is prohibited from applying any assessment ratios. The value placed upon property within the Appraisal District is subject to review by the Appraisal Review board, consisting of seven members appointed by the Board of Directors of the Appraisal District. However, the Nueces County Appraisal District reappraises the value of property every year. The City is entitled to challenge the determination of appraised value of property by category within the City by petition filed with the Appraisal Review Board. On November 2, 2004, voters of the City approved freezing the ad valorem taxes for citizens 65 or older, or disabled, and their spouses on homesteads owned thereby. Discount Bonds are shown at original issue amount. Preliminary, subject to change. To continue to maintain this debt as self - supporting, transfers have been made from the Tourist and Convention revenues and Airport Parking and Texas State Aquarium revenues, Lexington Museum, Airport Lease revenues and parking, Reinvestment Zone #2, Municipal Hotel Occupancy Taxes, Marina, Golf Centers, Scorn Water, and Solid Waste in amounts sufficient to pay both principal and interest on the self - supporting debt. The Total Interest and Sinking Fund balance as of August 1, 2008 is $ 16,591,514. After deducting 39.90% or $6,582,837 which applies to self- supporting debt, the balance of the Interest & Sinking Fund applicable to tax supported debt of 10,008,677. (2) (3) (4) (5) 85094036.2 A -1 -335- Estimated Overlapping Debt Expenditures of the various taxing bodies, such as school and special districts, within the territory of the City of Corpus Christi are paid out of ad valorem taxes levied by these taxing bodies on properties within the City. These political taxing bodies are independent of the City and may incur borrowings to finance their expenditures. Except for the amount relating to the City, the City has not independently verified the accuracy or completeness of such information as being accurate or complete. Furthermore, certain entities listed may have issued additional bonds since the date stated in the table, and such entities may have programs requiring the issuance of a substantial amount of additional bonds, the amounts of which cannot be determined. The following table reflects the estimated share of overlapping net debt of these various taxing bodies. Taxing Body Calallen I.S.D. Corpus Christi I.S.D. Corpus Christi Junior College District Flour Bluff I.S.D. London I.S.D. Nueces County (excluding special districts) Nueces County Hospital District Nueces County (Port of Corpus Christi) F -M Roads and Flood Control Nueces County Road District No. 4 Nueces County WC &ID No. 4 Port Aransas I.S.D. Robstown I.S.D. Tuloso- Midway I.S.D. West Oso I.S.D. Total Net Overlapping Debt Net Debt(Sli'l As 47,527,439 8 -1 -08 59,630,000 8 -1 -08 103,305,000 8 -1 -08 6,430,000 8 -1 -08 10,684,616 8 -1 -08 129,700,000 8 -1 -08 11,395,000 8 -1 -08 -- 8 -1 -08 8 -1 -08 -- 8 -1 -08 -- 8 -1 -08 9,228,002 8 -1 -08 26,252,707 8 -1 -08 49,164,995 8 -1 -08 21,809,994 8 -1 -08 Percent Overlappina(%)pl 39.77 94.22 92.14 85.45 3.85 37.05 37.05 37.05 37.05 0.00 0.47 70.08 0.13 50.16 32.16 Overlapping Gross Debt($1 18,901,663 56,183,386 95,185,227 5,494,435 411,358 48,053,850 4,221,848 6,466,984 34,129 24,661,161 7,014,094 266,628,135 Discount bonds are shown at original issue amount excluding subsequent compounding. Overlapping percentage represents the percentage of the estimated land are of the particular entity covered by the City. Source: Municipal Advisory Council of Texas, Texas Municipal Reports and the City. 85094036.2 [The remainder of this page intentionally left blank.] A -2 -336- Debt Ratios The following table shows a comparison of the ratios of net tax supported debt, estimated net overlapping debt and combined net debt to assessed value of taxable property and estimated population in the City for the past five fiscal years. For the purpose of this table, net direct debt consists of the City's tax supported debt less the amounts considered for self - supporting debt and applicable interest and sinking funds. Fiscal Year Ended 7 -31 Net Taxable Assessed Valuation Estimated Population Net Direct Debt - Tax Supported Ratio to Assessed Value Per Capita Net Overlapping Debt Ratio to Assessed Value Per Capita Net Direct and Net Overlapping Debt Ratio to Assessed Value Per Capita 2009($Y" 2008($1 13,813,355,014 13,107,205,639 297,447 295,594 239,781,366 148,043,286 1.74% 1.13% 806 501 266,628,135 214,864,031 1.93% 1.87% 896 828 2007($1 11,421,305,918 295,594 154,533,327 1.35% 523 301,068,635 2.64% 1,019 2006($1 2005(S) 10,478,530,288 9,639,561,772 293,122 293,122 121,723,287 127,808,249 1.16% 1.33% 415 436 263,160,961 213,945,142 2.51% 2.22% 880 730 506,409,501 392,907,317 455,601,962 384,884,248 341,753,391 3.67% 3.00% 3.99% 3.67% 3.55% 1,703 1,329 1,541 1,313 1,166 m As of August 1, 2008 and adjusted to include the Certificates; preliminary, subject to change. 85094036.2 [The remainder of this page intentionally left blank.] A -3 -337- Debt Service Requirements - Taa Supported Obligations The following table sets forth the principal and interest requirements on the City's outstanding tax supported debt. OUTSTANDING TAX SUPPORTED DEBT THE CERTIFICATES °r TOTAL FY Principal($) Interest(S) Total($) Principal(S) Interest($) °1 Total(S) ' Principal(S) Interest($) Total($) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CO Co 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 (r) Preliminary, subject to change. al Calculated at assumed rates. 85094036.2 A-4 Interest and Sinking Fund Management A ten year record of the City's policy of maintaining substantial reserves for the next year's debt service requirement on the City's Tax Supported Debt is set out below: Year Ended 7 -31 -1998 7 -31 -1999 7 -31 -2000 7 -31 -2001 7 -31 -2002 7 -31 -2003 7 -31 -2004 7 -31 -2005 7 -31 -2006 7 -31 -2007 7 -31 -2008 Principal and Interest Requirements($) 19,479,132 20,205,909 20,408,071 20,439,775 23,613,985 24,221,824 26,360,208 27,769,909 27,987,764 30,622,578 29,211,053 rn Tax Collections & Other Revenue($) (I) 19,429,559 20,592,558 19,276,889 20,771,761 22,817,235 24,846,218 25,704,993 26,846,675 27,915,111 31,988,938 34,200,653 I &SF Balance End of Year($) 151 12,481,417 12,878,565 11,747,384 12,079,370 11,282,621 11,907,015 11,251,800 10,328,564 10,255,911 11,622,271 16,591,514 Percent of Next Year's Requirements( %) 61.8 63.1 57.5 51.2 48.1 46.2 42.2 36.0 33.5 39.9 66.8 Other revenue includes transfers from Enterprise funds for self - supporting debt, interest on reserve and construction funds and other sources. On December 1, 2001, a partial refunding of the City's General Improvement Bonds was effected to take advantage of lower interest rates. Principal and interest in the amount of 51 1,340,000 includes S 197,291 in bond issuance expenses paid on this refunding issue. On April 1, 2003, a partial refunding of the City's General improvement Bonds was effected to take advantage of lower interest rates. Principal and interest in the amount of 522,575,000 includes 5338,430 in bond issuance expenses paid on this refunding issue. On September 1, 2004, a partial refunding of the City's General Improvement Bonds was effected to take advantage of lower interest rates. Principal and interest in the amount of 527,769,909 includes 5365,529 in bond issuance expenses paid on this refunding issue. On June 1, 2005, a partial refunding of the City's General Improvement Bonds was effected to take advantage of lower interest rates. Principal and interest in the amount of 527,769,909 includes 51,129,938 in bond issuance expenses paid on this refunding issue. Since 1988 the principal and interest requirements and Interest and Sinking Fund balance have included the Tax Increment Financing Zone debt, which is funded by taxes from the City, Nueces County, Corpus Christi Independent School District, and the Corpus Christ Junior College District In 2004, the bonds associated with the Tax Increment Financing Zone #1 matured. The following table removes the Tax Increment Financing Zone debt and reflects only the City's debt from 1998 to 2007. 85094036.2 [The remainder of this page intentionally left blank.] A -5 -339- Detailed Interest and Sinking Fund Management Index Bu t 2008 - 2009($1 Actual Actual dual Ac al 2007 - 2008($) 2006 - 2007($1 2005- 2006($1 2004- 2005($1 Balance on Hand Previous Year 16,591,514 11,622,271 10,255,911 10 ,328,564 11,251,800 Revenues: Ad Valorem Taxes 25,903,038 24,884,901 22,036,645 20,455,666 16,655,492 Payment from Texas State Aquarium 518,318 508,685 518,117. 500,427 512,182 Payment from Lexington Museum Associates 285,022 248,868 347,173 352,849 283,800 Payment from Corpus Christi -- - -- 272,234 252,841 Conv. & Visitors Art Museum Bureau to TESS 7,425 Fund Contributions: Transfer from Airport Fund 198,181 423,206 510,582 533,518 716,862 Transfer from Golf Centers 11,030 64,763 -- --- 12,723 Fund Transfer from Hotel Occupancy Tax Fund 2,489,296 1,886,648 2,492,279 2,557,083 2,680,966 Transfer from Visitors Facility Fund 15,026 15,169 15,294 15,222 Transfer from General Fund 4,165,235 4,185,390 3,830,940 1,270,270 2,305,369 Transfer from Maintenance Services Fund - 147,051 148,448 149,673 148,966 Transfer from Municipal lnformation Services Fund - 196,869 200,194 200,378 199,432 Transfer from Marina Revenue Fund 19,023 76,910 123,779 90,018 39,590 Transfer from Utility System Fund 176,951 998,216 1,193,334 1,169,187 1,268,760 Transfer from Stores Fund -- 14 523 14,661 14,782 14,712 Transfer from Employee Benefits Fund -- 15,522 15,669 15,799 15,724 Interest on Investments: 230,936 - 534,075 541,948 310,508 Total Revenues 33,997,030 34,200,653 31,988,938 27,915,111 26,557,604 Expenditures: Principal retired 30,245,000 17,840,000 20,065,000 18,340,000 18,960,000 Interest 11,140,513 11,371,053 10,545,155 9,656,942 7,013,139 Paying agent fees 12,000 10,857 12,423 10,774 12,234 Bond Issuance Cost 9,500 (19,952) 1,495,467 Total expenditures 41,397,513 29,231,410 30,622,578 27,987,764 27,480,840 Closing Balance 9.301,619 16,591,514 11,622,271 10,255,911 10,328,564 85094036.2 [The remainder of this page intentionally left blank.] A-6 -340- GENERAL REVENUES Major Sources of Revenue The City's General revenues are derived from property taxes, a sales tax, franchise taxes, fines and penalties, licenses and permits, various service charges, and miscellaneous other sources. The following table reflects information on the City's general governmental revenues. Comparison of General Revenues by Source(I) ( �) 1998 -99(31 1999 -00($1 2000 -0I($1 2001 -02($1 2002 -03($1 2003 -04($1 2004 -05($1 2005 -06($1 2006 -07(S) 2007 -08($1 Property Taxes(2) 49,877,349 51,511,700 53,653,914 58,462,775 61,353,225 65,116,321 68,497,499 72,546,764 75,818,774 79,970,549 Sales Tax 29,641,048 30,590,459 32,051,919 44,503,702 45,396,450 50,805,599 54,220,820 58,758,492 62,563,386 65,972,519 Hotel Tax 5,086,016 6,714,211 6,471,438 7,420,700 7,894,879 8,145,156 8,320,624 9,408,919 9,630,152 10,337,342 Business Taxes 14,596,050 15,150,930 17,895,243 17,221,953 16,119,482 15,943,638 16,076,514 16,569,587 16,738,947 17,322,510 Other Taxes 1,697,240 1,696,560 741,351 802,386 859,659 963,637 1,067,586 1,168,998 1,229,251 1,296,392 Licenses and Permits 1,749,314 1,991,569 1,701,743 1,680,236 1,917,640 2,396,870 3,321,875 3,493,616 3,399,993 3,576,249 Grants 15,423,484 14,304,154 15,689,285 18,106,920 15,489,416 14,751,502 15,140,433 14,435,465 16,043,767 17,329,907 Municipal Court Fines 2,836,311 3,238,230 4,011,734 4,318,635 3,922,564 5,189,598 5,658,571 6,118,520 6,907,942 6,825,170 Charges for Services 27,430,528 26,730,334 25,635388 29,342,087 30,268,143 34,531,641 41,306,241 50,520,423 53,669,631 54,989,566 1 Interest 1,031,049 1,194,716 1,456,841 1,2(0,885 1,238,077 726,056 1,408,622 2,472,885 4,346,201 3,706,645 COMisoellaneous 5,694,327 6,634,096 6,068,290 3,328,640 2,496,428 2,336,715 4,663,448 5,955,842 4,398,033 4,055,511 Revenues 1 Total 155,062,716 159,756,959 165,377,146 186,398,619 186,955,963 200,906,733 219,682,233 241,449,511 254,746,077 265,382,360 (1) These selected revenues are not all inclusive, but include major revenues from the General Fund, Special Revenue Funds and Debt Service Fund. 01 Includes Debt Service Fund, interest and penalty and Industrial District payments in lieu of taxes. [The remainder ofthis page intentionally left blank.] 85094036.2 A -7 General Fund Balances Revenues: Taxes & business fees Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest on investments Miscellaneous Total Revenues Expenditures: General government Public safety Streets Solid Waste Health Community enrichment Miscellaneous Debt service: Principal Retired Interest Total Expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Capital leases • Notes payable Operating Transfers in Operating Transfers out Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses" Reelassif of balance previously accounted in Prop fd Residual equity transfer in (out) Fund balance at beginning of year Fund balance at end of year •• Operating deficits were planned draws (3) 2008(51 115,198,120 3,576,249 403,127 48,952,962 6,825,170 1,532,486 1,199,353 $177,687,467 Fiscal Year Ending July 31 2007(51 2006(51 111,500,632 3,399,993 497,520 44,505,375 6,907,942 1,500,447 1,064,729 169,376,638 107,938,813 3,493,616 2,462,754 40,709,838 6,118,520 1,004,660 837,913 162,566,114 16,131,881 14,298,422 14,4 57,192 102,772,631 98,665,201 95,426,920 14,224,719 13,183,111 12,917,944 18,249,243 15,168,861 13,556,875 4,428,969 4,154,426 4,237,565 20,773,243(1) 17,885,895a) 17,727,971°) 3,018,049 237,267 $179,836,002 3,073,876 2,701,135 198,600 199,392 166,628,392 161,244,994 2005(5) 2004(5) 104,338,441 99,022,494 3,321,875 2,396,870 320,715 573,810 33,612,804 31,324,167 5,658,571 5,189,598 556,088 248,091 1,566,094 882,187 149,374,588 139,637,217 14,428,290 12,990,324 81,095,158 76,432,539 10,496,626 11,020,465 13,767,222 14,774,569 3,918,970 3,839,648 17,162,371 15,811,535 529,809 977,279 3,326,548 2,442,688 221,280 252,417 144,946,274 138,541,464 (2,148,535) 2,748,246 1,341,120 2,623,408 3,447,512 2,917,492 4,981,976 4,623,722 5,087,192 (5,673,653) (5,405,534) (3,239,242) 1,931,731 2,665,880 4,765,442 (216,804) 5,414,126 6,106,562 464,802 4,428,314 1,095,753 2,032,704 3,083,773 5,726,103 5,573,152 (7,467,950) (6,966,180) 290,857 1,690,745 4,719,171 2,786,498 32,426,604 27,012,478 20,441,114 15,721,943 12,935,445 32,209,80011) 32,426,604 27,012,478 20,441,114 15,721,943 Beginning 2005, Miscellaneous expenditures were reclassified to General Government The City is currently projecting a General Fund balance for the fiscal year ending July 31, 2009 approximately 54,500,000 lower than originally budgeted. This shortfall is attributable to certain one-time transfers to make necessary capital improvements and lower- than - expected revenues due to prevalent economic conditions. The City expects to mitigate a portion of this shortfall through reduced spending through the end of the current fiscal year. The resuhs of these efforts, or the actual decrease in General Fund balance for the 2008 -2009 fiscal year, will not become known until the end of the reporting period and subsequent audit of the applicable financial data On July 10, 2007, the City Council appropriated 52,902,327 of General Fund fund balance from FY 06 -07 estimated excess revenues over expenditures. A majority of these funds were encumbered in FY 06-07 and then expended in 07 -08; thus intentionally drawing down the fund balance in FY 07.08. An additional 5500,588 was appropriated by the City Council from FY 07 -08 excess revenues over expenditures for repairs to the City's Water Garden and 5306,017 was appropriated by the City Council FY 07 -08 excess revenues over expenditures for "one-time" expenditures for the buy -down of lease purchases. 85094036.2 A -8 -342- Industrial Districts During 1980, the City designated two areas of land within its extraterritorial jurisdiction as industrial district areas for the purpose of establishing industrial district contracts. An annual in lieu of tax payment is collected from industries located thereon in return for continuation of their extraterritorial status. Both areas combined comprise approximately 14,020 acres. The improvements located thereon are primarily commercial or industrial in nature. The area designated as Industrial District Number One is located on the City's northeast side contiguous to Nueces Bay and the harbor area. Industrial District Number Two is located on the City's northwest side and is bound primarily by the east City limit line, F.M. Road 1694 and State Highway 44. The City's authority to designate industrial districts is provided under Section 42.044, Local Government Code of the Revised Civil Statutes of Texas and extends to the entire extraterritorial jurisdiction of the City. Subsequent to designation of the above mentioned area, all owners or lessees of property used for industrial purposes in either area were provided an opportunity to execute one or two industrial district agreements approved by the City. The agreement would provide an industry immunity from annexation for the term of the contract (presently ten years), and allow an extension of the agreement beyond that period by mutual agreement. The agreement also provides for an annual in lieu of tax payment based on the market value of property within each company's designated industrial district. The payment is computed by applying the tax rate to 100 percent of the market value of the industrial district's land and to 60 percent of the market value of improvements located on such land. New improvements completed since January 1974, are considered at a reduced percentage of market value (i.e., on a sliding scale up to 60 percent). An additional 15 percent of market value of an industry's improvement property is considered in calculating the payment if an industry is not a member of the Refinery Terminal Fire Company and depends on the City Fire Department for fire protection. All in lieu of tax payments are recorded as revenue to the City's General Fund. The agreement first became effective January 1, 1981, and the City Council has authorized three extensions of all contracts, the last being effective January 1, 2005. Sixty -one companies are now operating under industrial district agreements. The total assessed value of land and improvements comprising all the existing industrial districts approximated $2,425,710,545 as of January 1, 2008. The City received industrial district payments as follows: Fiscal Year Amount($) 1997 -98 5,223,486 1998 -99 5,174,725 1999 -00 5,120,527 2000 -01 5,250,457 2001 -02 5,630,018 2002 -03 5,797,952 2003 -04 5,913,767 2004 -05 5,752,858 2005 -06 5,839,686 2006 -07 5,899,2240) 2007 -08 5,653,3711[) to The City Council adopted a financial policy to adopt the effective tax rate which lowered the actual property tax rate. Since the assessed values for the industrial district properties did not materially increase, the amount of cash decreased. 85094036.2 [The remainder of this page intentionally left blank.] A -9 -343- Sales and Use Tax The City imposes a 1% sales and use tax which is now one of the major sources of income for the General Fund. Revenues from Sales Tax for the past ten fiscal years have been as follows: % of ad Equivalent of Sales Tax Per Total Valorem Ad Valorem Capita Last Fiscal Year Collected($) Tax Levy Tax Rate($) Census($) 1997 -1998 28,732,516 66.10 0.41 111.60 1998 -1999 29,641,048 65.80 0.41 115.13 1999 -2000 30,590,459 65.72 0.41 110.25 2000 -2001 32,051,919 67.16 0.42 115.52 2001 -2002 32,674,742 63.17 0.41 117.77 2002 -2003 32,351,154 59.60 0.38 116.60 2003 -2004 34,120,633 59.20 0.38 122.98 2004 -2005 36,367,571 63.09 0.41 128.95 2005 -2006 39,442,670 60.46 0.38 131.65 2006 -2007 42,082,398 61.68 0.37 142.37 2007 - 2008 44,345,165 61.57 0.42 149.09 85094036.2 [The remainder of this page intentionally left blank.] A -10 -344- CO al GENERAL EXPENSES(I) Comparison of General Expenditures by Functions 192211 MAE 2841111 20024 1 $003(s1 2449(1l j005fs1 244€f11 222:11 $008($1 General Government 18,193,901 18,499,525 16,680,997 12,968,280 13,753,127 16,221,322 18,096,800 18,961,633 20.707,495 18,981,577 Public Safety(2) 64, 384, 420 64 ,623.972 64,371,854 73,918,474 80,532,121 82,785,712 87,833,826 101,805,112 107,360,877 110,663.675 Streets 9.047,340 9,671,249 9,137.705 10,452,285 10,531,232 12,107.029 10,989,960 13,056,076 13,502,624 14,233,051 Solid Waste 12,593,994 13,645,632 12,721,571 16,097.663 12,715,966 14,840,086 13,825,317 13,569,912 15,192,042 18,278,582 Health 4,960,960 4,895.092 4,460,371 4,874,857 5,329,227 5,536,134 6,417,300 6,452.124 5,980,026 6,592.800 Capital Projects 3,301,151 2,826,102 1,557,766 3,840,265 1,218,364 3,830,041 4,178,150 3,959,639 3,393,208 4,467,297 Community Emichmen91 27.413,609 27,358,068 29,743,311 23,875,847 26,684,023 26,889,774 27.786.066 30,008,152 27.458,882 31.248,848 Convention & visitors' activities (41 (4) (4) • 7,152,823 5,836,428 6,164,876 10,887,455 13,794,220 13,782,313 13,193,524 Debt Service 22,807,168 22.613,227 22,764,327 28,626,701 31,474,540 36,654,444 41,018,224 41,057,992 44,253,250 42,999,254 Miscellaneous 1,252,864 2,102,189 2,706,043 3,706,216 750,414 999,374 In a) (5) (e Interest on inter -fwd borrowings — — — — 21,147 80,169 148,160 Total e>Wenditures 163,955,403 166,235,052 164,143,941 185,513,411 188,825,442 206,028,792 221,054,240 285,692,422 251,778,872 260,658,608 The data in this table is abstracted from the financial statements of General, Special Revenue and Debt Service funds and presented for historical comparative purposes and is not to be considered all inclusive. Public Safety includes expenditures for Police, Fire, Ambulance, Municipal Court, Emergency Management, and Inspections. Community Enrichment includes expenditures for cultural and convention facilities, parks, recreation, marina, Bayfront Science Park, Corpus Christi Museum and Art Museum maintenance. Prior to FY 2001 -2002, expenditures for ' Convention and Visitors Activities" were included in 'Community Enrichment ". Beginning 2005, Miscellaneous expenditures were reclassified to General Government 85094036.2 [The remainder of this page intentionally left blank.] A -11 AD VALOREM TAXES Subject to certain exemptions, the property tax is imposed on real and personal property situated in the City. In addition to exemptions discussed below, principal categories of exempt property include property owned by the State of Texas or its political subdivisions if the property issued for public purposes; property exempt from ad valorem taxation by federal law; certain household goods, family supplies, and personal effects; farm products owned by producers; certain property associated with charitable organizations, use and development associations, religious organizations, and qualified schools; designated historic sites; solar and wind powered energy devices; and most individually owned automobiles. In addition, owners of agricultural and open space land, under certain circumstances, may request valuation of such land on the basis of productive capacity rather than market value. Exemptions - Over 65 and Disabled Pursuant to provisions of the Texas Constitution, the City may exempt an amount from the assessed valuation on the homesteads of persons 65 years of age or older and certain disabled persons to the extent approved by the City Council (and must grant an exemption to the extent voted by the majority of the City's voters at an election called upon a petition of 20% of the number of voters voting in the City's most recent election). Disabled Veterans Exemptions Beginning with the tax year 1976, under provision of the Texas Constitution, the City must grant an exemption ranging from $1,500 to $3,000 of assessed value of residential homesteads or personal property of disabled veterans who file for the exemption based on a formula of the percent of disability claimed. Starting in tax year 1996, the exemption increased in range from $5,000 to $12,000 of assessed value. Exemption - Local Option Under provisions of a Constitutional Amendment, the City has the option of granting a homestead exemption of up to 20% of market value. Minimum exemption is $5,000. For the years beginning with 1982, the City has granted 10% of market value or $5,000 exemptions, whichever is greater. In a statewide election held on September 13, 2003, Texas voters approved an amendment to Section 1 -b, Article VIII of the Texas Constitution, that would authorize a county, city, town or junior college district to establish an ad valorem tax freeze on residence homesteads of the disabled and of the elderly and their spouses. On November 2, 2004, citizens approved the establishment of the tax limitations described above. See "THE CERTIFICATES - Security for the Certificates" and "EFFECT ON THE TAX RATE LIMITATION" in the body of the Official Statement. Once the tax limitation is established, the total amount of ad valorem taxes imposed by the City on a homestead that receives the exemption may not be increased while it remains the residence homestead of that person or that person's spouse who is disabled or sixty-five years of age or older, except to the extent the value of the homestead is increased by improvements other than repairs. If a disabled or elderly person dies in a year in which the person received a residence homestead exemption, the total amount of ad valorem taxes imposed on the homestead by the taxing unit may not be increased while it remains the residence homestead of that person's surviving spouse if the spouse was fifty -five years of age or older at the time of the person's death. In addition, the Texas Legislature by general law may provide for the transfer of all or a proportionate amount of the tax limitation applicable to a person's homestead to be transferred to the new homestead of such person if the person moves to a different residence within the taxing unit. Once established, the governing body of the taxing unit may not repeal or rescind the tax limitation. 85094036.2 [The remainder of this page intentionally left blank.] A-I 2 -346- Assessed Valuations The Nueces County Appraisal District provided the City with a certified appraisal roll on July 28, 2008, for tax year 2008. The following table sets forth a comparison of the total net taxable property assessed valuation as of January 1 for the past ten years: Real Property Personal Property Total(2) Net Taxable Percentage of Tax Basis of Net Taxable Estimated Assessed Estimated Net Taxable Estimated Increase Year Assessment( %' Assessed Value($) (t) Market Value($) Value($) (I) Market Value($' Assessed Value($) co Market Value($' (Decrease)(%) 1999 100 6,549,804,068 7,829,632,259 912,781,136 922,955,223 7,462,585,204 8,752,587,482 3.2% 2000 100 6,722,202,669 8,077,929,844 929,854,734 940,291,975 7,652,057,403 9,018,221,819 3.0% 2001 100 7,019,540,276 8,435,234,205 1,009,784,779 1,033,337,024 8,029,325,055 9,468,571,229 5.0% 2002 100 7,425,008,625 8,922,477,009 1,001,648,102 1,047,865,471 8,426,656,727 9,970,342,480 5.3% 2003 100 7,926,634,055 9,525,269,802 1,021,262,343 1,091,986,683 8,947,896,398 10,617,256,485 6.5% 2004 100 8,465,741,365 10 ,272,935,304 1,173,820,407 1,191,484,860 9,639,561,772 11,464,420,164 8.0% 2005 100 9,304,960,019 11,130,529,932 1,183,064,809 1,230,303,736 10,488,024,828 12,360,833,660 7.7% 2006 100 10,234,441,848 12,166,239,146 1,186,864,070 1,247,502,997 11,421,305,918 13,413,742,143 8.6% 2007 100 11,694,623,855 14,084,066,107 1,416,208,996 1,447,200,791 13,110,832,851 15,531,266,898 15.8% 2008 100 12,361,873,857 14,738,455,220 1,451,461,157 1,481,661,131 13,813,335,014 16,220,116,351 4.5% CO A J 1 , Amounts shown are net taxable assessed values after the following deductions: residential homestead exemptions including exemptions granted to persons disabled and/or 65 years of age and older, exemptions granted to disabled and deceased veterans; productivity value loss; tax abatements; and agricultural use. Exemptions are granted to disabled veterans or their survivors based upon a percentage of type of disability with a minimum exemption of $1,500 and a maximum exemption of 33,000. Starting in fiscal year 1996 -97, these exemptions increased to a new range: from a minimum of $5,000 to a maximum of 812,000 of assessed value. Mobile homes, while classified as personal property, may be residential homesteads. al Under the provisions of a Constitutional Amendment, the City has the option of granting homestead exemption of up to 20% of market value. Minimum exemption is 85,000. Since tax year 1982, the City has granted a homestead exemption of 10% of market value or $5,000, whichever is greater. 85094036.2 [The remainder of this page intentionally left blank.] A -I3 Exemptions - Over 65 Exemptions Tax Assessed Value Number of Assessed Value Average Year Exemption($) 111 Exemptions of Exemption131($) Value($) 1999 50,000 16,004 636,786,100 39,789 2000 50,000 16,255 668,199,827 41,107 2001 50,000 16,458 684,880,475 41,614 2002 50,000 16,602 713,508,103 42,977 2003 50,000 16,670 729,550,443 43,764 2004 50,000 16,770 747,885,037 44,597 2005 50,000 16,795 756,289,977 45,031 2006 .50,000 16,959 774,587,868 45,674 2007 50,000 17,166 802,600,366 46,755 2008 50,000 17,255. 805,583,221 46,687 Disabled Taxpayers Exemptions Tax Assessed Value Number of Assessed Value Average Year Exemption($)01 Exemptions of Exemptions($) Value($) 1999 50,000 2,535 93,292,702 36,802 2000 50,000 2,652 101,418,975 38,242 2001 50,000 2,765 108,303,281 39,169 2002 50,000 2,880 115,715,191 40,179 2003 50,000 3,038 124,941,699 41,126 2004 50,000 3,270 136,391,738 41,710 2005 50,000 3,543 153,034,972 43,194 2006 50,000 3,858 169,395,823 43,908 2007 50,000 4,074 184,952,780 45,398 2008 50,000 4,292 194,747,769 45,375 Disabled Veterans Exemptions Tax Assessed Value Number of Assessed Value Average Year Exemption) Exemptions of Exemptions($) Value($) 1999 (3) 2,061 19,024,837 9,231 2000 (3) 2,092 19,290,426 9,221 2001 (3) 2,143 19,814,977 9,246 2002 (3) 2,241 20,755,630 9,262 2003 (3) 2,404 22,271,738 9,264 2004 (3) 2,562 23,814,922 9,295 2005 (3) 2,675 24,676,948 9,225 2006 (3) 2,822 26,170,310 9,274 2007 (3) 2,994 27,809,472 9,288 2008 (3) 3,121 30,523,222 9,780 See notes, next page. 85094036.2 A -14 -348- Exemption -Local Option Tax Assessed Value Number of Assessed Value Average Year Exemption(') Exemptions of Exemptions($) Value($) 1999 (4) 52,513 366,149,406 6,973 2000 (4) 54,333 392,740,809 7,228 2001 (4) 55,189 414,770,371 7,515 2002 (0) 56,051 434,924,406 7,759 2003 (0) 56,560 467,542,416 8,266 2004 (4) 57,473 503,873,807 8,767 2005 ( 4) 57,748 540,248,333 9,355 2006 (4) 58,305 583,485,482 10,007 2007 (4) 58,784 668,799,297 11,377 2008 (4) 59,672 704,460,740 11,806 (o (2) This exemption was granted pursuant to an election held on April 6, 1987, called upon petition of the voters of the City. Beginning with tax year 1976, under provision of the Texas Constitution, the City must grant an exemption ranging from S1,500 to $3,000 of assessed value of residential homesteads or personal property of disabled veterans who file for the exemption based on a formula of the percent of disability claimed. Starting in tax year 1996, the exemption increased in range. The new range is from $5,000 to $12,000 of assessed value. Under provisions of a Constitutional Amendment, the City has the option of granting homestead exemption of up to 20% of market value. Minimum exemption is $5,000. The City has granted 10% of market value or $5,000 exemptions, whichever is greater. Tax Abatement State law authorizes subdivisions of the State of Texas to grant tax abatements to any person, organization or corporation in order to stimulate economic development within the State. Consequently, the City Council has adopted a resolution establishing criteria whereby the City will, on a case -by -case basis, give consideration to providing tax abatement to any qualifying applicant. Generally, the period of abatement is for up to two years during the period of construction and for five years thereafter with a maximum period not to exceed seven years. The percentage of tax abated shall be determined based upon permanent jobs provided by the project as follows: 0% on 49 or less; 50% on 50 to 99; 75% on 100 to 199; 100% on over 200. Notwithstanding the resolution adopted by the City Council; or the criteria attendant thereto, it is not implied or suggested that the City is under any obligation to provide tax abatement to any applicant. As of January 1, 2008 the estimated value of property in the City that was subject to tax abatement is $16,087,786. Tax Rates and Limitations The maximum tax rate permitted by the Constitution of Texas is $2.50 per $100 of assessed valuation. 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. The amended Charter provides for the tax rate to increase up to the State limit for voter approved debt authorized after April 4, 1993. The ad valorem tax rate is levied each year by the City Council through the adoption of a tax rate ordinance. Effective January 1, 2000, all taxing units must adopt their tax rates before the later of September 30 or the 60th day after the taxing unit receives the appraisal roll. The following table indicates the tax rate distribution for the past nine tax years and current tax year. 85094036.2 [The remainder of this page intentionally left blank.] A -15 -349- Tax Rate Distribution (per $100) Tax Year General Fund($) Interest & Sinking Funds(S) Total($) 1999 0.468133 0.155593 0.623726 2000 0.463133 0.160593 0.623726 2001 0.457523 0.186652 0.644175 2002 0.460031 0.184144 0.644175 2003 0.466554 0.177621 0.644175 2004 0.460000 0.174175 0.634175 2005 0.426624 0.199175 0.625799 2006 0.403197 0.199175 0.602372 2007 0.364671 0.199175 0.563846 2008 0.364671 0.199175 0.563846 Truth -in- Taxation Limitation Under Title 1 of the Texas Tax Code (known as the "Property Tax Code "), the City must annually calculate and publicize its "effective tax rate" and "rollback tax rate ". A tax rate cannot be adopted by the City Council that exceeds the lower of the rollback tax rate or the effective tax rate until two public hearings are held on the proposed tax rate following a notice of such public hearings (including the requirement that notice be posted on the City's website if the City owns, operates or controls an Internet website and public be given by television if the City has free access to a television channel) and the City Council has otherwise complied with the legal requirements for the adoption of such tax rate. If the adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require than an election be held to determine whether to reduce the tax rate adopted for the current year to the rollback tax rate. "Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation of last year's taxes and new values are not included in this year's taxable values. "Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the anticipated tax collection rate. Levy and Collection of Taxes The City has contracted for the collection of its property taxes with the Nueces County Tax Assessor /Collector. In July or August of each year, the rate of taxation is set by the City Council based upon the valuation of property within the City as of January 1. Ad valorem taxes are due on receipt of a tax bill and payable from October 1 of the year in which levied until January 31 of the following year without interest or penalty. Split payments are not allowed. On February 1, the unpaid taxes become delinquent and have a penalty and interest charge of seven (7 %) percent. Taxes delinquent from March 1 through June 30 have an additional penalty and interest charge of two (2 %) percent per month for a total penalty and interest charge of fifteen (15 %) percent. Taxes delinquent on July 1 have a total penalty and interest charge of eighteen (18 %) percent. Taxes delinquent on July 1 accrue an additional fifteen (15 %) percent for collection cost of taxes. Unpaid taxes after July 31 accrue an additional interest charge of one (1 %) percent per month until paid. The Property Tax Code makes provision for discounts for early payment and the postponement of the delinquency date under certain circumstances. Fiscal year 1991 -92 was the last year the City granted a discount for early payment. The discounts were three (3 %) percent in October, two (2 %) percent in November, and one (1 %) percent in December. For fiscal years after 1991 -92, the City did not offer discounts. 85094036.2 A -16 -350- Levy and Collection of Taxes The following Table I sets forth a comparison of the net taxable assessed valuation, tax rate levy and percentage of taxes collected for the past nine fiscal years. Table II sets forth a comparison of the tax levies and also indicates the amount of uncollected delinquent taxes. Table I Tax Net Taxable Tax Year Year Assessed Valuation($) Rate(S) % Current % of Total Ending 1999 7,462,585,204 0.623726 963 99.0 7 -31 -00 2000 7,652,057,403 0.623726 96.2 98.7 7 -31 -01 2001 . 8,029,325,055 0.644175 96.1 99.0 7 -31 -02 2002 8,426,656,727 0.644175 96.1 99.1 7 -31 -03 2003 8,947,896,398 0.644175 96.1 98.9 7 -31 -04 2004 9,639,561,772 0.634175 96.3 99.3 7 -31 -05 2005 10,488,024,828 0.625799 96.0 98.6 7 -31 -06 2006 11,421,305,918 0.602372 95.2 97.7 7 -31 -07 2007 13,110,832,851 0.563846 97.3 99.7 7 -31 -08 2008 13,813,355,014 0.563846 (in process of collection) 7 -31 -09 Table II Outstanding Delinquent Tax as Delinquent Outstanding Percent of Fiscal Tax Net Current Current Tax Tax Total Tax Delinquent Current Year Year Tax Levy($) Collections($) Collections($) Collections($) Tax($) Levy( %) Ending 1999 46,546,084 44,836,825 1,256,701 46,093,526 4,855,538 10.4 7 -31 -00 2000 47,727,871 45,900,923 1,200,467 47,101,390 4,973,081 10.4 7 -31 -01 2001 51,772,865 49,683,646 1,509,804 51,193,450 5,036,692 9.7 7 -31 -02 2002 54,282,374 52,161,807 1,631,724 53,793,530 4,985,476 9.2 7 -31 -03 2003 57,640,112 55,417,905 1,575,879 56,993,784 6,332,114 11.0 7 -31 -04 2004 61,131,691 58,864,317 1,829,112 60,693,430 4,794,920 7.8 7 -31 -05 2005 65,237,253 62,656,806 1,684,900 64,341,706 4,961,481 7.6 7 -31 -06 2006 68,230,749 64,961,636 1,704,973 66,666,609 5,038,461 7.4 7 -31 -07 2007 72,029,119 70,048,380 1,756,979 71,805,359 5,241,882 7.2 7 -31 -08 Tax year 2008 is in process of collection. 85094036.2 [The remainder of this page intentionally left blank.] A -17 -351- Principal Ad Valorem Taxpayers The following table identifies the taxpayers comparable 2007 assessed valuations where Name of Taxpayer 1 American Electric Power Texas Central Co. 2 Markwest Javelina Pipeline Co 3 Padre Staples Mall, LP 4 H. E. Butt Grocery Company 5 SABCO Operating Company 6 AT &T 7 Bay Area Health Care 8 Wal -Mart Auto Cater 9 Zobouri Developments Mustang Island LLC 10 MT Development Company 11 Flint Hills Resources, LP 12 HD Development Properties LP 13 Sterling Energy Inc. 14 Camden Property Trust 15 Orion Drilling LP 16 Facey Enterprises NV, LTD 17 One Shoreline Properties LTD 18 Weingarten Realty Investors 19 Case Walnut Ridge Apartments LP 20 Coastal Drilling Co. in the City with the twenty largest assessed valuations in 2008 and their available. Type of Business Electric Utility Energy and Natural Gas Commercial Properties Retail Stores Petroleum Company Telephone Services Hospital/Healthcare Retail Stores Commercial Properties Commercial Properties Petroleum Company Commercial Properties Power Plant Industry Commercial Properties Petroleum Company Developer Commercial Properties Retail Stores Commercial Properties Petroleum Company Percentage of Total to Tax Year 2008 Net Taxable Assessed Value Source: Nueces County Appraisal District. 85094036.2 2008 Assessed Value($) 121,280,080 70,753,370 64,972,156 58,878,328 57,921,940 53,981,010 50,004,843 45,695,687 36,481,984 36,453,760 30,588,371 29,332,327 24,728,100 24,114,102 23,184,000 23,068,444 22,400,007 22,006,156 21,027,219 20.778.400 837.650284 6.06% [The remainder of this page intentionally left blank] A -18 -352- 2007 Assessed Value($) 123,714,620 71,164,230 63,438,255 72,941,878 37,396,790 61,429,560 49,982,018 45,152,572 36,481,984 36,452,971 25,931,263 29,541409 18,425,438 24,114,102 17,395,815 22,606,572 22,400,007 24,185,657 21,027,219 6.318.400 819.109 64 FIVE YEAR OPERATING STATEMENT FOR SOLID WASTE FIVE YEAR OPERATING STATEMENT FOR SOLID WASTE 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 Revenues: Solid Waste Services Refuse Collection Fees: Residential S 10,010,141 $ 10,174,714 $ 11,268,019 $ 12,379,693 $ 12,882,495 $ 13,342,605 Commercial and Industrial 791,673 1,156,987 1,217,445 1,508,399 1,598,798 1,637,874 Municipal solid waste system service charge 1,282,303 1,653,689 1,705,416 1,986,343 2,531,257 3,363,150 Refuse Disposal Charges 6,983,226 8,185,917 8,499,872 7,942,373 9,211,095 11,109,592 Disposal Charges - Landfill Project 58,969 8,654 3,685 - Refuse Collection Permits 20,800 21,545 22,358 21,169 21,508 21,018 Special Debris Pickup 201,808 210,527 206,218 290,443 277,535 257,546 Recycling 5,613 3,529 1,512 22,123 49,923 65,768 Recycling containers - - 36,940 52,135 45,599 TNRCC -COG • - 79,075 - Recovery of Charged off Accounts 50 1,041 - . I Miscellaneous 39760 28,079 58,283 46 13,089 10 CO Ui Total Solid Waste Revenues $ 19,394,343 $ 21,436,028 $ 23,066,852 $ 24,187,529 $ 26,641,520 29,843,162 CO Expenditures: Solid Waste Office 1,210,667 1,194,920 1,291,851 1,199,292 1,070,526 1,049,766 J.C. Elliot Transfer Station 5,113 859,376 Refuse Collection 6,980,873 6,149,445 6,133,245 6,246,501 6,010,021 7,563,085 Refuse Disposal 4,937,397 4,985,777 5,577,891 5,307,198 8,242,844 8,795,077 Brush Collection 1,766,767 1,973,950 1,957,596 2,043,769 2,195,561 2,468,525 Recycling Collection 939,578 1,033,260 1,043,811 1,000,110 1,036,377 1,050,913 Cefe Valenzuela landfill operation - - 142,070 790,333 Cash for Trash 94,198 26,851 62,021 - - Landfill Regulation Compliance 26,569 - 600 1,860 - Graffiti clean-up project - - 3,965 86,602 Landfill Closure Costs - - Total Solid Waste Expenditures $ 15,956,049 $ 15,364,203 $ 16,066,415 $ 15,797,470 $ 18,708,337 $ 22,663,677 Excess of Revenues over Expenditures $ 3,438,294 $ 6.071,825 $ 7,000,437 $ 8,390.059 NOTE: 'Refuse Disposal" expenditures include an annual transfer to debt service for landfill improvements. 85094036.2 A -19 $ 7,933,183 7,179,485 THE TAX INCREMENT FINANCING ACT General Information On November 3, 1981, the voters of the State of Texas approved a constitutional amendment empowering the legislature to authorize by general law the issuance of bonds or notes by incorporated cities or towns to finance the development or redevelopment of an unproductive, underdeveloped, or blighted area within the city or town and to pledge for repayment of those bonds or notes increases in ad valorem tax revenue imposed on property in the area of the city or town and other political subdivisions. In anticipation of the adoption of the constitutional amendment, the Legislature, in 1981, adopted the Texas Tax Increment Financing Act of 1981 which is currently codified in Chapter 311 of the Texas Tax Code (the "Act "). The Act has been upheld through court challenge. The assessed value of property in a reinvestment zone at the time of the creation of the zone constitutes the base value as to all political subdivisions exercising taxing power within the reinvestment zone. Tax receipts from all such political subdivisions received as a result of increased assessed values over the base value (the tax increment) are placed in the tax increment fund and may be used to pay for capital improvements or to pay tax increment bonds or notes. Corpus Christi Reinvestment Zones On December 29, 1982, the City Council of the City designated a portion of the City as a reinvestment zone pursuant to the Act. The area was designated as Corpus Christi Reinvestment Zone No. 1 ( "Zone No. 1 "). In accordance with the terms approving the creation of Zone No. 2, Zone No. 1 was terminated on March 1, 2004. On November 14, 2000, the City Council passed an ordinance creating the Corpus Christi Reinvestment Zone No. 2 ( "Zone No. 2 ") encompassing approximately 1,934 acres on North Padre Island. The preliminary plan calls for funding the local share of the reopening of a channel to the Gulf of Mexico, Packery Channel, along with beach restoration in front of the Padre Island seawall and related improvements. Nueces County, the Nueces County Hospital District, and Del Mar College (formerly Corpus Christi Junior College) have agreed to participate in Zone No. 2. Pursuant to rights reserved to and exercised by the citizens of the City in its Charter, a referendum petition was filed to require an election on whether to repeal the City's ordinance adopted on November 14, 2000. In response to the petition, the City Council called an election on repeal of this ordinance for April 7, 2001. At this election the citizens voted not to repeal the November 14, 2000 ordinance. In 2003, $5,000,000 in bonds were issued, in 2004 $4,100,000 in bonds and in 2006 $2,900,000 in bonds were issued and in 2006 $2,900,000 in bonds were issued by the North Padre Island Development Corporation, a non - profit corporation created by the City for the purpose of issuing bonds in furtherance of the development of Zone No. 2. In March 2008, the Corporation issued $13,445,000 in refunding bonds, refinancing all of the previously issued bonds, to generate a debt service savings. • On December 16, 2008 the City Council approved a 20 year Tax Increment Financing Zone for the Downtown area, designated as the Corpus Christi Reinvestment Zone No. 3 ( "Zone No. 3 "). Zone No. 3 is intended to address the problem of substandard, slum and or deteriorating structures within the boundaries of Zone No. 3, the predominance of defective or inadequate sidewalk and street layouts and conditions that endanger life or property by fire or other cause. The boundaries of Zone No. 3 start along the Bayfront from the Sea town area (ship channel) on the North, Morgan Avenue to the South and west to Tancahua Street. The primary function of Zone No. 3 will be the planning, design and construction of public improvements. Zone No. 3 is only one of a variety of planned funding sources and programs that will in act in concert to accomplish a changed public environment in downtown. Over the last ten (10) years the City has invested over $150 million in the downtown area, and $47 million is planned for locations partly or wholly within Zone No. 3 intended to rehabilitate and improve existing public infrastructure. Some examples of possible improvements include: 85094036.2 A -20 -354- • Streetscape, sidewalks and crosswalks • Roadways and Traffic management • Parks, public spaces and public facilities • Utilities and drainage • Land assembly • Environmental remediation and safety improvements The City's contribution of its tax increment revenues to Zone No. 3 is projected to be $28.5 million over the 20 year period. The City will request the' participation of Nueces County and Del Mar College, a junior college district and a taxing unit whose boundaries are coterminous with those of Nueces County. If these two entities elect to fully participate for the 20 years, it is estimated that Zone No. 3 will collect a total of $59.9 million in tax increment revenues. The revenue projections assume a 3% growth in valuations and a 98% tax collection rate throughout the duration of Zone No. 3. The City estimates that the decision of Nueces County and Del Mar College to participate in Zone No. 3 will be known by the end of the first quarter of 2009. Reinvestment Zone Ad Valorem Taxes The following table sets forth the net taxable assessed values (assessed value net of exemptions) in Zone No. 2 for Fiscal Year 2007 -2008 and the related levy. The Corporation issued an additional $2,900,000 in 2006 to complete the $12,000,000 authorized amount. In 2008 the Corporation issued refunding bonds for the full amount of the bonds. Reinvestment Zone No. 2 Entity Gross Current Jurisdiction TIF Appraised Taxable Taxable Jurisdiction Taxable TIF Value(S) Value($) Value($) Levy($) Value($) Levy($) Nueces County 360,853,525 343,088,485 81,842,393 287,580 262,544,228 922,535 Farm to Market 360,853,525 342,830,485 81,691,196 3,509 262,425,763 11,270 Hospital District 360,853,525 343,088,485 81,842,393 118,493 262,544,228 380,117 City of Corpus Christi 360,853,525 345,798,617 82,623,919 465,872 264,035,347 1,488,753 College([) 360,853,525 347,016,857 82,818,649 457,096 264,986,011 384,901 1,332,549 3,187,576 1n Starting in Tax Year 2007, College District contributes a reduced percentage (60 %) to Reinvestment Zone No. 2. The Texas State Aquarium In 1996, the City issued $4,400,000 in Combination Tax and Texas State Aquarium Revenue Bonds of Obligation, the proceeds of which were used to purchase land, improvements, and capital equipment owned by the Aquarium and to build exhibits at the Aquarium which are deemed essential to continue to attract visitors. The debt service on these obligations are payable from revenues pursuant to the Contract between the City and the Association. The revenues identified under the heading "Operating Revenues - Admissions" in the following table are being made available to the City under a Contract with the Association, dated February 27, 1996, on a "gross revenue" basis. The contribution of such revenues may have an affect on the ability of the City or the Association to pay operating costs of the Aquarium exclusively from revenues generated from the use of the Aquarium. To the extent such revenues are not sufficient to pay debt service due and owing on these obligations, these obligations additionally are payable from a pledge of ad valorem taxes to be levied by the City. 85094036.2 [The remainder of this page intentionally left blank] A -21 -355-- [This page intentionally left blank.] 85094036.2 A -22 -356- 85094036.2 APPENDIX B CERTAIN INFORMATION RELATING TO THE CITY OF CORPUS CHRISTI B -1 -357- 85094036.2 [This page intentionally left blank] B -2 -358- The following information has been provided by the City from sources it believes to be reliable. Information contained herein regarding industries and other private institutions in the Corpus Christi area are for general background purposes only. INFORMATION CONCERNING THE CITY OF CORPUS CHRISTI Population and Location Corpus Christi is now the eighth largest city in the State of Texas with a population of 297,447 based on the City's 2008 estimate. The geographic location of the City on the Gulf of Mexico and the Intercoastal Waterway gives it one of the most strategic locations in the Southwest and has been important to its economic development. Additional general information concerning the City's population and economy can be found under the caption "Economic and Demographic Characteristics" in the City's financial information contained in Appendix B. Area The area of the City has increased through annexation as the City's population and industry grew. The City has had numerous annexations and now contains approximately 504 square miles, which is broken down to approximately 150 square miles of land and 354 square miles of water. While the area covered by water contains no population and does not require normal city services, it does produce considerable revenues from oil and gas properties located therein. Form of Government and Administration The City was incorporated in 1852. In 1909, the City was organized under a City Charter and operated as a general law city until 1926 when a Home Rule Charter with a commission form of government was adopted. The Charter was amended in 1945 and the present Council- Manager form of government was adopted. The City Council consists of the Mayor and eight Council Members elected for two year terms. The Mayor and three Council Members are elected at large and five Council Members from single member districts. These nine officials are listed elsewhere in this document. The City Manager is appointed by the City Council and is the Chief Administrative and Executive Officer of the City. The Director of Financial Services is appointed by the City Manager and is charged with the administration of fiscal affairs of the City. By an initiative submitted in accordance with provisions of the City Charter, on November 5, 2002, the voters in the City considered a proposition that would have amended the City Charter to make the Mayor of the City the chief administrative and executive officer of the City. The citizens of the City voted to reject this proposed amendment to the City Charter. The City Council fixes the annual tax rate based on a budget prepared under the direction of the City Manager. The names, years of services, experience, and background of certain appointed officials are as follows: Management Angel R. Escobar, City Manager Angel R. Escobar was appointed City Manager on November 11, 2008 after being appointed Interim City Manager on September 1, 2008. Prior to that time, he served as Interim Assistant City Manager of Public Works for one year until being named City Manager. Mr. Escobar also served as Director of Engineering Services from 1999 — 2007 after holding the position of Assistant Director. Before joining the City of Corpus Christi in 1989, Mr. Escobar was Partner and Senior Project Engineer /Consultant with the engineering firm of Smith & Russo Engineers/Architect. Mr. Escobar is experienced in all phases of civil engineering, public works and public administration, capital improvement programming, capital budget administration, design, construction and field administration. Mr. Escobar is credited for initiating programs to promote minority participation in City public works projects and maintained project records to document minority participation in compliance with City Council policies. Most 85094036.2 B -3 -359- recently, Mr. Escobar has accomplished the outsourcing of 100 percent of the studies and architectural and engineering design efforts for the City of Corpus Christi. Mr. Escobar is registered as a Professional Engineer and Professional Surveyor. He has his Bachelor of Science in Engineering from Texas A & I University and is a retired Command Sergeant Major from the U. S. Army Reserve. Oscar R. Martinez, Assistant City Manager for Public Works Oscar R. Martinez was appointed Assistant City Manager for Public Works in September 2008, As Assistant City Manager, he is responsible for overseeing Engineering, Environmental Services, Gas, General Services, Storm water, Streets, Solid Waste Services, Wastewater, and Water. Prior to that time, Mr. Martinez was appointed in October 2004 as Assistant City Manager for Administrative Services. Mr. Martinez previously served as Assistant Budget Director for the City of Corpus Christi in the mid -80's. Prior to his recent employment with the City of Corpus Christi, he served over 14 years in workforce development as President/CEO of Work -Force 1, President/CEO of Workforce Network, Inc., Director at the Greater Corpus Christi Business Alliance, and Vice President of Workforce Development Corporation. Mr. Martinez has also been a teacher for the Corpus Christi ISD as well as the Dallas ISD. Mr. Martinez has a Master of Arts Public Administration from St. Mary's University in San Antonio, Texas and a Bachelor of Arts Political Science/Business Administration from Texas A &I University in Kingsville, Texas. He has served on several Boards including United Way, Committee on Educational Excellence, Corpus Christi Chamber of Commerce Education and Workforce Committee, Coastal Bend American Red Cross, Equality in Education Council, Corpus Christi Technical Education Advisory Council, and the Human Investment System Council, just to name a few. Margie C. Rose, Assistant City Manager for Community Services Margie C. Rose was appointed Assistant City Manager for Community Services in April 2002, having previously worked in local government for more than 20 years. Ms. Rose is responsible for the departments of Development Services, Convention Facilities, Health, Human Relations, Neighborhood Services and Park and Recreation, Libraries and Museum. In her prior positions, Ms. Rose served as Purchasing Director, Director of Administrative Services, Director of Department of Public Services, Assistant City Manager and City Manager for the City of Inkster, Michigan. She also served as Deputy Director of Parks for the County of Wayne, Michigan. Ms. Rose served on various professional committees including the Michigan Municipal League Finance and Taxation Committee, International City/County Management Planning Committee and the Michigan City Management Workplace Diversity Committee. Ms. Rose received her BBA (Accounting) degree in 1984 and her MPA in 1991, both from Eastern Michigan University. Juan "Johnny" Perales, P.E., Interim Assistant City Manager for Development Services Juan Perales, Jr., P.E., was appointed Interim Assistant City Manager for Development Services on January 23, 2009. In this role, Mr. Perales is responsible for Department of Development Services, and oversees all planning, development, and permitting activities for the City of Corpus Christi. Mr. Perales had served as Deputy Director for the Department since January 29, 2007. In other assignments with the City of Corpus Christi, he served as a Project Engineer and later Major Projects Engineer with the Department of Engineering Services between 1991 and 1996. From 1996 to 2007, he served as Facilities Superintendent and later Assistant Director for the City's Wastewater Department. Mr. Perales is a licensed engineer in the State of Texas, having graduated from the University of Texas with a degree in Civil Engineering. Cindy O'Brien, CPA, Interim Assistant City Manager for Administrative Services Cindy O'Brien was appointed Interim Assistant City Manager for Administrative Services in September 2008. In that role, Ms. O'Brien is responsible for overseeing the Finance, Budget, Municipal Information Systems, Human Resources, Community Development, Municipal Court- Administration, and E- Govermnent Departments. Prior to that time, Ms. O'Brien was appointed Chief Financial Officer for the City in February 2007 after having served as Director of Financial Services for four years and after serving in the Office of Management and Budget for two years. There, she served, first as Assistant Director, then as Acting Director before her current appointment. Prior to her position in Management and Budget, Ms. O'Brien served for over seventeen years in the Finance Department, holding various positions including Chief Accountant. Ms. O'Brien is a Certified Public Accountant and holds 85094036.2 B-4 -360- a B.B.A. degree from Sam Houston State University where she majored in Accounting. She is a member of the Government Finance Officers Association, national and state organizations, as well as the Government Treasurers Organization of Texas. Constance P. Sanchez, CPA, CPM, Interim Director of Financial Services Constance P. Sanchez was appointed Interim Director of Financial Services in September 2008. In that role, Ms. Sanchez is responsible for all areas of financial management, including financial reporting, accounting, budgeting, treasury, revenue and collections, purchasing, and the utility business office which includes billing, field services, and customer services for the City of Corpus Christi. Before that time, she was appointed Assistant City Auditor, Auditor, Chief Accountant, Assistant Director of Financial Services, and most recently Deputy Director of Financial Services. Prior to her 17 years with the City, Ms. Sanchez was an auditor with KPMG Peat Marwick for three years. Ms. Sanchez is a member of the American Institute of Certified Public Accountants (AICPA), the Texas Society of Certified Public Accountants (TSCPA), and a member of the Government Finance Officers Association of Texas. Ms. Sanchez, a life -long citizen of Corpus Christi, was valedictorian of her high school class. She received an Associates of Arts degree in Business Administration from Del Mar College and a Bachelor of Business Administration degree — magna cum laude, from Corpus Christi State University. Ms. Sanchez is a Certified Public Accountant and a Certified Public Manager. Certain Governmental Services Provided by the City Public Safety ... The City provides police protection, fire protection, building inspection, street lighting and traffic signals, and civil defense. Law enforcement and civil defense is provided through the Police Department. The City's Fire Department operates 16 fire stations throughout the City and the Emergency Medical Service. Public Services ... In addition to operating its water, wastewater disposal, and gas systems, the City also provides garbage collection and disposal and maintenance of streets and storm drainage areas. Community Enrichment ... The City has a main library and five branches which are equipped with over 413,308 volumes. The City owns and maintains approximately 190 parks containing over 1,581 acres. The City also owns extensive recreational facilities including 131 playgrounds, a marina with 580 yacht basin slips, 4 municipal beaches, 2 public golf courses, 9 swimming pools, 37 tennis courts, 9 baseball and softball diamonds, 5 recreational centers, and 8 senior citizen centers. In addition, the City owns an auditorium, a coliseum, Harbor Playhouse, the Corpus Christi Museum, the Multicultural Center, the Water Garden, and a Community Convention facility. Airport and Transit System ... The City owns the Corpus Christi International Airport situated on 2,657 acres. The Regional Transportation Authority operates the regional transportation system which provides passenger bus and paratransit service within the area and seasonal services including a passenger ferry connecting several tourist attractions. Health ... The City maintains preventive health services through health facilities within the community. The City does not have the responsibility of maintaining hospitals, a school system, or a higher education system, and does not expend any funds in providing welfare. THE CITY'S FINANCIAL PROCEDURES Audit and Financial Reporting The City Charter requires an annual audit to be made of the books of accounts, records, and transactions of the City by a Certified Public Accountant. The fiscal year of the City begins the first day of August of each year and ends with the thirty -first day of July of the following year. The Govemment Finance Officers Association of the United States (the "GFOA ") first awarded the City its Bond of Conformance, later termed the Bond of Achievement for Excellence in Financial Reporting, for its annual financial report for 1957. The City was awarded the same recognition for its 1970, 1975, 1978, 1979, 1983, and 1984 through 2007 financial reports. 85094036.2 B -5 -361- Budget Procedures State laws and the City Charter require the preparation and filing of an annual budget. The City Manager submits a proposed budget to the City Council at least sixty days prior to the beginning of the fiscal year which estimates revenues and expenses for the next year. The proposed expenditures will not exceed estimated revenues. The City Council shall adopt a balanced budget prior to the beginning of the fiscal year. If the City Council fails to adopt a budget by the beginning of the fiscal year, the amounts appropriated for current operations for the current fiscal year are deemed the adopted budget for the ensuing fiscal year on a month -to -month basis until such time as the City Council adopts a budget for the ensuing year. Significant Accounting Policies The City prepares its financial statements in accordance with the generally accepted accounting principles for local governmental units as prescribed by the Governmental Accounting Standards Board and the American Institute of Certified Public Accountants. A summary of significant accounting policies of the City are set out in the Notes to Financial Statements for the fiscal year ended July 31, 2008 located referenced elsewhere in the financial section of the Official Statement. Population The revised 2000 United States Census population for Corpus Christi is 277,454, which is approximately eight percent greater than the population reported in 1990. The table shows the history of population from 1920 to 2000: Population Percent of Increase Over United States Census Figures for 1920 - 1990 Preceding Census 1920 10,522 27% 1930 27,541 162% 1940 57,301 108% 1950 108,053 89% 1960 167,690 55% 1970 204,525 22% 1980 232,134 13% 1990 257,543 11% 2000 277,454 8% Corpus Christi Standard Metropolitan Statistical Area (SMSA) consists of Nueces and San Patricio Counties, and, according to the 2000 United States Census, had a population of 380,783. It is estimated that the population in the SMSA will exceed 403,000 in the next ten years. Trade Area and Location Corpus Christi's trade area consists of five counties, Nueces, San Patricio, Aransas, Jim Wells, and Kleberg. Each of the counties maintains a solid and diversified economic base which contributes material support to Corpus Christi due to its location as a trade center and shipping point. The land is generally flat with strong mineral deposits, rich soil, excellent climate, and a growing season of approximately 300 days. Grain sorghum and cotton are the principal agricultural crops. The region also has a strong supply of livestock including beef, dairy cattle, hogs, and poultry. The oil and gas industry is a major factor in the growth and economic stability within the trade area. Mineral values vary depending on world market and demand. This industry also provides a secondary market for petro by- products and chemicals. The trade area's principal outlet for agricultural and petroleum products is the Port of Corpus Christi, which has served the area for over seventy years. The rebuilt grain elevator, completed in 1983, has added to the Port's 85094036.2 B -6 -362- capacity to handle various agricultural products. In 2007, the Port handled a volume of 89.3 million tons of cargo, including 74.9 million tons of petroleum products. Corpus Christi has one of the most strategically located waterways in the Southwest, with deep water transportation to the Gulf of Mexico and barge traffic all along the Texas Coast via the Intracoastal waterway. The nearest other port is in Brownsville, 160 miles to the south; nearest retail and wholesale outlet is San Antonio, 145 miles to the northwest; and the nearest heavy industry competition is Houston, 210 miles to the northeast. Business Corpus Christi continues to grow as a regional center for a 12- county area. Our retail mall "La Palmera ", is currently undergoing major renovation and has attracted many new retail outlets to its location. The $50 million upgrade project includes 18,000 square foot expansion of a major department store, an aquatic - themed food court with a 4,400 gallon aquarium, outdoor mall area, fountains and a children's play area. The project is expected to be completed in the fall of 2009. Other developments in the planning stages are the Las Brisas Energy Center and the Taij in Pipe Group Corp (TPCO) Texas Mill. Las Brisas is a $3 billion, 1,200 megawatt petroleum coke - fueled power plant proposed for the north side of Corpus Christi. It will bring almost 4,000 direct and indirect jobs during a 4 -5 year construction cycle and 250 -300 direct and indirect jobs upon completion. Las Brisas is awaiting a final air permit from the State before construction can commence. The TPCO project demonstrates the region's ability to compete and win world class projects in difficult times, as the region's selection (announced in January 2009), was made after evaluating more than thirty other regions in the U.S. The company's' site selection near Gregory- Portland represent the largest foreign direct investment ($1 billion) ever by a Chinese Company in U.S. history and will add 300 -600 high paying jobs to the Corpus Christi area. Several major projects are in various stages of planning or construction in the downtown area. Phase one of the Bayfront Development project is underway to revitalize downtown and attract business and tourism to the downtown/bayfront area. Phase two is scheduled to begin immediately upon completion of the first phase, creating an investment of $25 million in the downtown area. These projects are relocating traffic lanes inland to create large green spaces between the water and traffic for community events and recreation activities. Additionally, at this time, the City Council is reviewing proposals for the use of Memorial Coliseum, which is located on the bayfront and has been closed since 2004. Proposals include the development of a 9 -acre entertainment complex, an ice rink for Corpus Christi's minor league hockey team, and an Olympic swim competition center. Texas A &M University — Corpus Christi is developing plans for expansion. In 2008, the City donated 137 acres of land to the University for this expansion. Additionally in November 2008, the City Council approved a resolution supporting an agreement between the Corpus Christi Business and Job Development Corporation and Texas A&M — Corpus Christi for development of facilities for a Bachelor of Science in Mechanical Engineering Program. Enrollment at the University has increased by 6.8% in the last year. In November 2008, the City was ranked 8th in the nation by the Center for Digital Governments among those with a population class of 250,000 and greater. Even though the City ended its partnership with Earthlink in May 2008, it continues to be on the forefront of wireless technology. In the past year, the City's Development Services Department has made improvements to their processes by adoption of a clear and consistent Unified Development Code. These improvements make processes more efficient and effective. Additionally, Forbes named the City as No. 1 for "Best Small Commute" and by Minor League News as having the best minor league ballpark (Whataburger Field). Industry Corpus Christi industry provides a diversified product market including metal fabrication, chemical processing, farm and ranch equipment, oil field equipment, cement, food processing, electronic, petrochemical products, fishing and seafood products and more. The diversification is primarily due to the commitment of City leadership. The trade area's principal outlet for agricultural and petroleum products is the Port of Corpus Christi Authority (the "Authority "), which opened to world markets in 1926. It is located along the southeastern coast of Texas on the 85094036.2 B -7 -363- Gulf of Mexico approximately 150 miles north of the Mexican border. The Port's channel stretches over 30 miles and links the Corpus Christi Bay with the Gulf of Mexico. Deeper channels have for decades allowed Corpus Christi to be a competitive port for bulk commodities requiring large, deep draft vessels. It is currently ranked as the sixth largest port in the United States and handled a volume of 89.3 million tons of cargo during the 2007 calendar year. It is the terminus of network of oil and gas pipelines throughout Southwest Texas and extending into West Texas. The Port has many initiatives underway, including the Joe Fulton Intemational Trade Corridor and the La Quinta Gateway. These projects were funded with federal and state assistance, revenue bonds and the Authority's unrestricted net assets. In July 2007, the Authority's environmental management system (EMS) received I50 -14001 certification from a third -party certification body, National Quality Assurance. ISO -14001 certification demonstrates that the environmental impact within the scope of the Authority's EMS program is being effectively managed and continually improved in accordance with the Authority's environmental policy. Joe Fulton International Trade Corridor The Joe Fulton International Trade Corridor encompasses an 11.5 -mile road and rail project that connects two major highway components — US Highway 181 and Interstate Highway 37; thus establishing efficient intermodal links between highway, marine, and rail transportation systems. Construction began in 2004 and was completed in October 2007. Additionally, the Texas Department of Transportation has approved full funding for a $23 million flyover that will provide a direct connection between Interstate 37 and the Joe Fulton International Trade Corridor. La Quinta Gateway project A second major initiative of the Port's long -term diversification plan is the La Quinta Gateway project. This 1,100 - acre site will accommodate a modern, multi -modal facility providing seamless transfer of cargo, trailers, and containers between highway, rail, ferry, coastal and deep sea conveyances. Additionally in October 2006, the Port began receiving regular shipments of wind turbines at the Southside General Cargo Terminal. These initial shipments, which are destined for projects in the Texas Panhandle, have helped make Texas the number one state in the nation of wind power production. Tourism and Convention Business Corpus Christi continues to be a popular vacation spot for visitors, as reflected by the ranking of the sixth most popular tourist destination in Texas. Nearly seven million visitors visited Corpus Christi during the two year period 2007 -2008 spending on the average, approximately $1 billion per year. Visitors stayed longer in Corpus Christi than in other areas of the State - an average of 2.3 days in Corpus Christi compared to 2.1 days in all of Texas. The number one reason visitors visit the area has historically been the enjoyment of the beaches along Mustang and Padre Islands, the longest barrier island in nature fronting on the Gulf of Mexico. The opposite side of the barrier provides a shoreline for Corpus Christi Bay, Laguna Madre, and the various bays and bayous north of the Coastal Bend which is well - suited for outdoor recreation. Tourist facilities located within the City include: a multi - purpose arena at the American Bank Center, Whataburger Field which houses a AA major league affiliate baseball team, the Texas State Aquarium, the USS Lexington Museum, the Museum of Science and History, the South Texas Art Museum, the Asian Cultures Museum, the Multicultural Center/Heritage Park complex, and the Concrete Street Amphitheater. The Corpus Christi area is also a renowned location for water sports, including windsurfing and kiteboarding, and serves as a host to the annual U.S. Open Windsurfing Regatta and international power and sail boat races and the Texas International Boat Show. International Flavor The City of Corpus Christi is a member of Sister Cities International. Through Sister Cities Intemational, Corpus Christi has established affiliations with Keelung, Taiwan; Veracruz, Mexico; Yokosuka, Japan; Agen, France; and Toledo, Spain. The City and nearby neighbor, Monterrey, Mexico, have established a Partner in Trade affiliation that emphasizes business and cultural opportunities for cooperative ventures. Yokosuka, Japan sends up and coming city employees to Corpus Christi for overseas' training in public service and an exchange that teaches the different facets of volunteerism in Japan. In addition to establishing a "Partner in 85094036.2 B -8 -364- Trade" with Monterrey, the City has established closer ties with cousins in 23 countries including Austria, Belgium France, Spain, Italy, and others. Proximity to San Antonio Corpus Christi continues to benefit from tourist attractions in San Antonio. San Antonio is located 2.5 hours by automobile north of Corpus Christi with easy access by Interstate 37, and Corpus Christi is favorably viewed as an attractive one -day trip by San Antonio visitors. With Corpus Christi's growing list of attractions, which include the Texas State Aquarium, the U.S.S. Lexington Museum on the Bay, and the Las Carabelas Columbus ship exhibit, visitors may be tempted to stay a little longer. Foreign Trade Zone The Port of Corpus Christi Authority operates one of the largest Foreign -Trade Zones (FTZ) in the United States. The Zone includes an Industrial Park near the Airport, two full service public warehouses near the Airport, all Port properties (7,000) acres that are available for storage and/or industrial activity, three bulk fuel terminals, six refinery subzones, two metal fabrication (offshore oil platforms and towers) subzones, and two minerals processing subzones. The Port's FTZ department is a full service Grantee assisting clients with applications, FTZ training, interpretation of Customs regulations, and interface with Customs officials. Corpus Christi Enterprise Zone The City of Corpus Christi has a State of Texas approved Enterprise Zone to assist in economic development activities. The Enterprise Zone contains approximately 14 square miles. In the 8 -year existence of the Enterprise Zone, over $2.5 billion of State of Texas approved Enterprise Zones projects have begun within the Enterprise Zone. While numerous State benefits for companies locating in the Enterprise Zone are available, the City also provides incentives for companies locating within the Enterprise Zone. Private Utilities Telecommunications and electrical service are available from several providers. Construction The Table below indicates the amount of new construction activity in Corpus Christi and the number of permits issued for all purposes. Building Permits Year Number of Permits Value 1998 -1999 5,984 $ 142,154,244 1999 -2000 5,845 152,987,779 2000 -2001 4,761 149,264,763 2001 -2002 5,207 154,763,863 2002 -2003 4,565 333,016,517m 2003 -2004 4,012 295,084,882 2004 -2005 5,781 387,122,147 2005 -2006 5,989 450,750,242 2006 -2007 5,693 503,027,247 2007 -2008 5,118 343,865,608 (1) Based upon the construction of several large commercial projects, including shopping malls. 85094036.2 B -9 -365- Employment The following table indicates the total civilian employment in the Corpus Christi MSA for the December 2008 as compared to the prior periods of November 2008 and December 2007: Civilian Labor Force Unemployment Percent Unemployment Total Employment December 2008 November 2008 200,600 11,000 5.5% 189,600 201,100 10,700 5.3% 190,400 period December 2007 197,300 8,700 4.4% 188.600 The following table shows certain nonagricultural wage and salary employment in the Corpus Christi MSA for the period December 2008 as compared to the prior periods of November 2008 and December 2007: Natural Resource & Mining Manufacturing Wholesale Trade Retail Trade Transportation, Warehouse & Public Utilities Information Financial Activities Professional & Business Services Education & Health Services Leisure & Hospitality Other Services Government Total * Estimates for the current month are preliminary December 2008* 21,000 10,900 5,700 22,200 5,300 2,400 8,300 16,400 27,600 21,000 6,300 32,700 179,800 Source: Texas Workforce Commission, Labor Market Review, February 2009. 85094036.2 B -10 -366- November 2008 21,200 10,900 5,700 21,600 5,300 2,400 8,300 16,400 27,500 21,100 6,300 32,900 179,600 December 2007 20,900 11,000 5,700 20,600 5,300 2,400 8,300 16,000 26,900 20,600 6,300 32,500 177,500 85094036.2 APPENDIX C The information contained in this appendix consists of certain audited FINANCIAL STATEMENTS OF THE CITY OF CORPUS CHRISTI, TEXAS FOR THE FISCAL YEAR ENDED JULY 31, 2008. — C -1 -367- 85094036.2 [This page intentionally left blank.] C -2 -368- 85094036.2 APPENDIX D FORM OF OPINION OF BOND COUNSEL D -1 -369- 85094036.2 [This page intentionally left blank.] -370- 85094036.2 M. E. ALLISON & CO., INC. 950 East Basse Road, Second Floor San Antonio Texas 78209 Financial Advisor -371- 14 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: June 30 2009 AGENDA ITEM: Resolution approving the establishment of the American Bank Center Arena Marketing/Co- Promotion Fund and the guidelines for the American Bank Center Arena Marketing/Co- Promotion Fund adopted by the Corpus Christi Business and Job Development Corporation. ISSUE: The American Bank Center is requesting assistance in promoting, retaining, securing, and hosting sport related tenants, concerts, attractions, and other events at the American Bank Center Arena that generate a positive economic impact for the City of Corpus Christi. REQUIRED COUNCIL ACTION: Council action is required to establish a Marketing/Co- Promotion Fund and guidelines for the American Bank Center Arena. PREVIOUS COUNCIL ACTION: None. CONCLUSION AND RECOMMENDATION: Staff recommends the approval of the establishment of a Marketing/Co - Promotion Fund and guidelines for the American Bank Center Arena. Margie C. Rose Assistant City Manager margier(a)cctexas.com 826.3232 Attachments American Bank Center Arena Marketing /Co- Promotion Fund Guidelines —375— BACKGROUND INFORMATION During the May 15, 2009 Corpus Christi Business and Job Development Corporation meeting staff requested, on behalf of the American Bank Center, that the Corporation consider establishing an Arena Marketing/Co - Promotion Fund. Staff informed the Corporation that due to the competitiveness of the entertainment industry there is a need to provide various incentives to promote, retain, secure and host sport related tenants, concerts, attractions and other events at the American Bank Center Arena. These incentives are intended to help generate a positive economic impact for the City of Corpus Christi. On May 15, 2009 the Business and Job Development Corporation also granted approval to add $500,000 in the proposed 2009 -2010 budget for the establishment of a Marketing/Co - Promotion Fund for the Arena. However, the Corporation requested that guidelines be established for the regulation of the Fund. At the June 15, 2009 Business and Job Development Corporation meeting, guidelines were submitted from the American Bank Center, through Staff, to the Corporation for consideration. The Corporation approved the guidelines. —376— AMERICAN BANK CENTER ARENA MARKETING /CO- PROMOTION FUND MISSION -- The Marketing /Co-Promotion Fund is designed to assist the Corpus Christi American Bank Center in promoting, retaining, securing, and hosting sport related tenants, concerts, attractions, and other events at the American Bank Center Arena ("Arena ") that generate a positive economic impact for the City of Corpus Christi. Objective — To provide funding to the American Bank Center Arena to offset event related expenses incurred for the purpose of attracting business to the Arena, such as: tenant leases, conventions, and other events and business opportunities. The Marketing/Co- Promotion Fund allows the Arena to actively create events. The creation of these events can be achieved in several ways: 1) Creating Events- Example: Summer Concert Series 2) Buying Talent and serving as the promoter of the event -100% Risk/Reward 3) Co-Promoting an event with an event promoter -50% Risk/Reward Fund Uses -- Potential use of these funds may vary. Some of the anticipated uses for this fund assistance include, but are not limited to: • Underwriting/subsidy for rental space at the Arena. • Underwriting/subsidy for additional services at the Arena, e.g., security, parking, audiovisual equipment. • Financial support for requirements in the bidding process e.g. sporting events, special events, etc. • Marketing support. • Underwriting /sponsorship of special FAM trips or site visits for potential clients for the Arena. • Assisting in defraying the cost of shuttle bus service between hotels and the Arena for appropriate business. Fund assistance will be offered only when trying to secure new, and retain existing, future business for the Arena. Fund assistance will NOT be offered If not necessary to secure business nor will funds be paid directly to any event organizer or tenant. Arena% 20MarkeOng% 20% 26% 20co% 2DProducOon %20Fund'➢7AOe072009[q A standard SMG Pro Forma will be submitted to City officials prior to Marketing /Co- Promotion Fund dollars being committed. This document will attempt to indicate the "Worst Case" and "Best Case" financial outcomes of the proposed event. Under no circumstances Is this document meant to be a guarantee of the success of the event. As with any business venture, there will be risks involved. It is the intent of SMG to identify risks, and mitigate the risks that are within management's control. Fund Authorization -- The board of the Corpus Christi Business and Job Development Corporation will have the authority to approve funding when a request meets all specified guidelines. A majority vote is required to approve any expenditures from the fund. Payment Disbursements --Fund assistance payments will be monitored and disbursed by the City of Corpus Christi to the American Bank Center. Qualifying for Funds - To qualify for funds the following must be considered: • The group considered for funding must hold an event and catering functions at the Arena. • The event must cause a significant or positive economic impact in Corpus Christi. • The level of support approved will take into account type of business: new, repeat, weekend, holiday, future meeting potential, etc. • Any unpaid invoice balance for the related service (difference between Marketing /Co- Promotion Fund contribution and vendor's total bill) is the responsibility of the client. • Both parties of this agreement must endorse approval of an event's application for the Marketing /Co- Promotion Fund for the funds to be dedicated. Funding Source - The funding source for Marketing /Co- Promotion Fund will come from the 4 -A Board annual contribution to the City, and may not be considered separate and apart from any other City funding allocated to the American Bank Center. The initial fund level will be $500,000. Unused funds from the prior fiscal year will, if financially feasible, be rolled over into the Marketing /Co- Promotion Fund account. The City of Corpus Christi shall retain fiscal control of these funds until reimbursement is made to American Bank Center Arena. -378 - w __... u. u- a.- n-- at nnotneee nnn.. ee nnn...a...wtwnOLOnt..ndQ(JX1fAf l9f1flQf11 Evaluation —Every three years after the initial execution of this agreement the signatories to this agreement shall evaluate the adequacy of the current funding levels to accomplish the mission and objectives stated above. Arena% 2OMarkoUng% 20% 28% 20Co% 2DproducUon %20Fund%2o006o1200g[1] MEMORANDUM To: Chairman and Honorable Board Members, Corpus Christi Business and Job Development Corporation From: Margie C. Rose, Assistant City Manager Date: June 12, 2009 Subject: Proposed Guidelines for the American Bank Center Arena Marketing / Co- Promotion Fund The City received the above referenced request from the American Bank Center General Manager requesting approval of the proposed guidelines. Staff reviewed the request with the General Manager and hereby supports their recommendation. If you should have any questions, feel free to contact me. —380— AmericanBank CENTER. arena 1 convention center I selena auditorium Date: June 11, 2009 To: `Angel R. Escobar, City Manager From: Marc Solis, General Manager Subject: Guidelines for American Bank Center Arena Marketing/Co- promotion Fund Enclosed please find the proposed American Bank Center Arena Marketing/Co- Promotion Fund guidelines. Currently, American Bank Center lies amidst a highly competitive field in obtaining exceptional performances in order to enhance the quality of life for citizens in the City of Corpus Christi. Additionally, with the incessant escalation in this competitive market of purchasing entertainment and attractions, a number of arenas/venues have taken initiative in promoting and /or co- promoting their own events; thus, creating even more competition for American Bank Center to book certain performances. More specifically, American Bank Center competes with approximately forty -four venues with capacities of five thousand or more in the state of Texas alone. Within these venues twenty -two are actively practicing promoting and/or co- promoting their own shows. Due to the aforementioned we believe it is necessary to augment our business practices and incorporate more aggressive methods to obtain the attractions most desired by our market. The Arena Marketing and Co- promotion Fund is a tool used by many of' our peers in other markets but has been out of our reach until now. This is the opportunity for Aterican Bank Center to increase business activity utilizing this fund while creating a permanent imprint in our local community and changing the scope of Corpus Christi's entertainment. Encapsulating the above mentioned reasons we highly recommend that the Corpus Christi Business and Job Development Corporation and the City Council approve the attached guidelines for the American Bank Center Arena Marketing/Co- promotion Fund, /1 Sine Solis General Manager Enclosed: Guidelines for American Bank Center Arena Marketing / Co- promotion Fund Copy to: Margie Rose, Assistant City Manager 361.826.4100 1 fax 361 -883 -0788 1 www.amerlcanbankcenter.com P.O. Box 23040 1 1901 N. Shoreline Blvd., Ste. 100 i Carpus Christi. TX 70403 -3040 =381 w4nM VMnMV� AMERICAN BANK CENTER ARENA MARKETING /CO- PROMOTION FUND MISSION -- The Marketing /Co- Promotion Fund is designed to assist the Corpus Christi American Bank Center in promoting, retaining, securing, and hosting sport related tenants, concerts, attractions, and other events at the American Bank Center Arena ( "Arena ") that generate a positive economic impact for the City of Corpus Christi. Objective — To provide funding to the American Bank Center Arena to offset event related expenses incurred for the purpose of attracting business to the Arena, such as: tenant leases, conventions, and other events and business opportunities. The Marketing / Co-Promotion Fund allows the Arena to actively create events. The creation of these events can be achieved in several ways: 1) Creating Events- Example: Summer Concert Series 2) Buying Talent and serving as the promoter of the event- 100°/0 Risk/Reward 3) Co-Promoting an event with an event promoter -50% Risk/Reward Fund Uses -- Potential use of these funds may vary. Some of the anticipated uses for this fund assistance include, but are not limited to: Underwriting /subsidy for rental space at the Arena. • Underwriting /subsidy for additional services at the Arena, e.g., security, parking, audio/visual equipment. • Financial support for requirements in the bidding process e.g. sporting events, special events, etc. • Marketing support. • Underwriting /sponsorship of special FAM trips or site visits for potential clients for the Arena. • Assisting in defraying the cost of shuttle bus service between hotels and the Arena for appropriate business. Fund assistance will be offered only when trying to secure new, and retain existing, future business for the Arena. Fund assistance will NOT be offered if not necessary to secure business nor will funds be paid directly to any event organizer or tenant. Arena %20M aAceing% 20% 26% 2000 %2DProducuon %20POii862BB6012009[1 ] A standard SMG Pro Forma will be submitted to City officials prior to Marketing /Co- Promotion Fund dollars being committed. This document will attempt to indicate the "Worst Case" and "Best Case" financial outcomes of the proposed event. Under no circumstances is this document meant to be a guarantee of the success of the event. As with any business venture, there will be risks involved. It is the intent of SMG to identify risks, and mitigate the risks that are within management's control. Fund Authorization -- The board of the Corpus Christi Business and Job Development Corporation will have the authority to approve funding when a request meets all specified guidelines. A majority vote is required to approve any expenditures from the fund. Payment Disbursements - -Fund assistance payments will be monitored and disbursed by the City of Corpus Christi to the American Bank Center. Qualifying for Funds -- To qualify for funds the following must be considered: • The group considered for funding must hold an event and catering functions at the Arena. • The event must cause a significant or positive economic impact in Corpus Christi. • The level of support approved will take into account type of business: new, repeat, weekend, holiday, future meeting potential, etc. • Any unpaid invoice balance for the related service (difference between Marketing /Co- Promotion Fund contribution and vendor's total bill) is the responsibility of the client. • Both parties of this agreement must endorse approval of an event's application for the Marketing /Co- Promotion Fund for the funds to be dedicated. Funding Source -- The funding source for Marketing /Co- Promotion Fund will come from the 4 -A Board annual contribution to the City, and may not be considered separate and apart from any other City funding allocated to the American Bank Center. The initial fund level will be $500,000. Unused funds from the prior fiscal year will, if financially feasible, be rolled over into the Marketing /Co- Promotion Fund account. The City of Corpus Christi shall retain fiscal control of these funds until reimbursement is made to American Bank Center Arena. Arena% 20Madcetlng% 20% 20 %2OCo %2DProductlon %20Fund%2 2009[1] Evaluation — Every three years after the initial execution of this agreement the signatories to this agreement shall evaluate the adequacy of the current funding levels to accomplish the mission and objectives stated above. Arena% 20Markeing %20%20%20Co %2DProducUon %20Fund 48972000[t] RESOLUTION APPROVING THE ESTABLISHMENT OF THE AMERICAN BANK CENTER ARENA MARKETING /CO- PROMOTION FUND AND THE GUIDELINES FOR THE AMERICAN BANK CENTER ARENA MARKETING /CO- PROMOTION FUND ADOPTED BY THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION WHEREAS, the FY 2009 -2010 Budget of the Corpus Christi Business and Job Development Corporation ( "4A Board ") provides for the appropriation of $500,000 to establish adopted Guidelines for the American Bank Center Arena Marketing /Co- Promotion Fund; and WHEREAS, the 4A Board adopted Guidelines for the American Bank Center Arena Marketing /Co- Promotion Fund, which control how the funds may be used to support the operation of the American Bank Center Arena; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Subject to the final approval of the FY 2009 -2010 Budget of the Corpus Christi Business and Job Development Corporation by the City Council, the City Council approves the establishment of the American Bank Center Arena Marketing/ Co- Promotion Fund. SECTION 2. The City Council authorizes the 4A Board to use the Guidelines for the American Bank Center Arena Marketing /Co- Promotion Fund, as adopted by the 4A Board on June 15, 2009. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Joe Adame City Secretary Mayor APPROVED: 23rd day of June, 2009. R. OR ning First A sistant City Attorney For City Attorney Resolution — Arena Marketing & Co- Production Fund 06162009 —385— 2 Corpus Christi, Texas of ,2009 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla G. Leal John E. Marez Nelda Martinez Mark Scott Resolution — Arena Marketing 8 Co- Production Fund 06182009 -386- 15 MEMORANDUM TO: Council Members FROM: Armando Chapa, City Secretary SUBJECT: LRA Nominations /Appointments Mayor Adame has asked that the City Council reconsider the nominations and appointments to the LRA made during the Council Meeting of June 23, 2009. Per City Council policy, a motion for reconsideration must be made at the next regular council meeting after action was taken and will require 2/3 vote for passage. Once the motion to reconsider passes, prior nominations and appointments will be void. Mayor Adame is recommending that he and Dr. Robert Ferguson be nominated to the new Ingleside Local Redevelopment Authority (LRA) Implementation Board of Directors and also appointed to the LRA Planning Board of Directors. Armando Chapa City Secretary -389- COUNCIL MEMORANDUM To: Mayor Joe Adame and Council Members From: Armando Chapa, City Secretary Date: June 15, 2009 Subject: Nominations to the Ingleside Local Re- development Authority (LRA) On June 9, 2009 the City of Ingleside, Texas approved the creation of a Defense Base Development Authority pursuant to Chapter 379B, Title 12 of the Local Government Code. It is the successor of the previously organized Ingleside Local Re- Development Authority(LRA) under the Development Corporation Act of 1977 and will retain the same name. It has been created for planning and implementing the redevelopment of the 155 acre surplus property-Naval Station Ingleside Electromagnetic Reduction Facility. Pursuant to the Code and the Resolution creating the LRA, the City of Ingleside and San Patricio County will, by separate Resolutions, appoint the Authority's Board of Directors. The general consensus reached at a planning meeting for the establishment of the new LRA was that the Board of Directors would consist of eleven (11) members. The City of Ingleside will have seven (7) appointees. Four (4) will be City of Ingleside nominees, two (2) will be Nueces County nominees and one (1) will be Port of Corpus Christi Authority nominee. San Patricio County will have four (4) appointees. Two (2) will be San Patricio County nominees and two (2) will be City of Corpus Christi nominees. We are recommending that the City nominate two individuals to serve on the Ingleside Local Re- Development Authority Board of Directors. Armando Chapa, City Secretary -390- 16 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Economic Development Department Development Corporation (EDC) Status Updates CITY STAFF PRESENTER(S): Name Title /Position 1. Irma Caballero Director OUTSIDE PRESENTER(S): Name Title /Position DATE: June 30, 2009 and Regional Economic Department Economic Development Organization 1. Roland C. Mower, CEcD President/CEO Corpus Christi Regional Economic Development Corporation —393— c--LT .- 74--,L L4-47t/A---) - Irma Caballero, Director Economic Development Economic Development Department (EDD) Overview June 2009 2 BACKGROUND Department changed in 2003 once Assistant City Manager responsible for Economic Development retired. In 2005 primary responsibility was to function as a central point for City services /incentives supporting the Corpus Christi Regional Economic Development Corporation's efforts to recruit new businesses to our city. Since 2005 duties have increased significantly. 3 EDD STAFF Irma Caballero Director Emily Martinez Manager r�J Patrick Wiltshire Sr. Mgmt. Assistant (Intern) 4 EDD Vision A strong, diverse regional economy that is growing and allowing citizens to realize the American dream — quality of life, quality of jobs, quality of community. 5 EDD Mission Strengthen the region with progressive development using: Economic policies, strategies and incentives that grow, support and maintain a strong economy Targeted approaches addressing area wide needs Small business programs focused on needs identified by business owners Partnerships with regional economic entities EDD City Partners it Airport Utilities Parks ngineerinj N'bighborhoe)d Services /` ED Dept Finance Public Legal ` {nformatio�d 6 EDD Public & Private Partners CCREDC Del Mar College County Chambers of Commerce Westside Business Association Padre Island 7 DUTIES ED Dept. i 8 9 OPPORTUNITIES Development of Strategies /Policies for Business Recruitment & Retention Website Redevelopment Marketing Services Community Support Redevelopment of the Coliseum 10 TIMELINES ED Policies - July 28, 2009 Website- Sept. 1, 2009 Marketing - On-going Business Support- On-going (DT TIF, Adopt DT, Task Forces) Memorial Coliseum - On -going 11 Your leadership and Support Will facilitate the region's growth and economic well being and provide direction for staff actions Key Work in Progress Researching and evaluating ED Policies to submit for your consideration and approval on July 28, 2009. 12 '3 Thanks for the opportunity to share what we do in the ED Department. Questions? 11 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Civil Lawsuits in Costly Graffiti Cases STAFF PRESENTER(S): Name Title /Position Department 1. Alison J. Logan Assistant City Attorney Legal 2. Mark Schauer Commander CCPD 3. OUTSIDE PRESENTER(S): Name Title /Position Organization 1. 2. 3. BACKGROUND: Chapter 33, Article VI. Graffiti Control of the City Code of Ordinances was amended by City Council Action on August 21, 2007 to include measures for anti - graffiti action and provisions for penalties, including the establishment of a system for the City to accept assignment of claims from graffiti victims in order to file damage suits against parents and graffiti vandals. The CCPD Graffiti Task Force recommends civil lawsuits against parents of graffiti offenders in costly, high profile cases as an additional enforcement tool. REQUIRED COUNCIL ACTION: None PowerPoint Supplemental Information Mary INay Fis her City Attorney MaryKF ©cctexas.com 361/826 -3360 Mike Walsh 0 (, Interim Chief o P ice Mikeacctexas.com 361/886 -2604 —403— GRAFFITI TASK FORCE City Council Presentation June 30, 2009 2008 GRAFFITI ARRESTS: 107- Arrests 51- Minors 2009 GRAFFITI ARRESTS: 58 — Arrests 36 — Minors (January, 2009 —June 19, 2009) GRAFFITI TRUCK REMOVAL STATISTICS: January, 2009 — June, 2009 866 - Locations 52,321- Square Feet January, 2008 — December, 2008 1,867 — Locations 157,009 — Square Feet Parental Responsibility 1. What kind of homes do compulsive vandals come from? 2. How many lawsuits does the police department anticipate filling annually? 3. Will lawsuits be filed if restitution is ordered by a juvenile court? 4. Is the city looking to make a profit from these lawsuits? GRAFFITI TASK FORCE City Council Presentation June 30, 2009 ifr) CORPUS CHRISTI CHAMBER OF COMMERCE Prosperity. Together. Resolution of Support By the Corpus Christi Chamber of Commerce October 6, 2008 WHEREAS, graffiti defaces property, is expensive to repair, and makes any community unattractive; and WHEREAS, graffiti costs American communities more than $8 Billion per year; and WHEREAS, graffiti is a growing problem in Corpus Christi causing 140 arrests in the past 13 months; THEREFORE, BE IT RESOLVED, by the Corpus Christi Chamber of Commerce that we support the efforts of the City of Corpus Christi and the Graffiti Task Force; and BE IT FURTHER RESOLVED, that we support the enforcement methods of the Graffiti Task Force. Approved this 171 day of June, 2009 (Robert J. Go .:r ez, Chairm Atte?;t " "� (Daniel Garza, Se Cc-17-09 (Date) —411- 1201 North Shoreline Boulevard Corpus Christi, Texas 78401 361.881.1800 ph 361.882.4256 fax vnm.corpuschristichamber.org PORTCORPUS CHRISTI May 12, 2009 Ms. DeAnna McQueen Graffiti Coordinator Corpus Christi Police Department 321 John Sartain Corpus Christi, Texas 78401 Dear Ms. McQueen: The Port of Corpus Christi supports the efforts of the Corpus Christi Police Department to mount a concerted and coordinated effort to enforce existing laws, develop new initiatives, and initiate mechanisms to aid in the cleanup of graffiti. The Port of Corpus Christi is a primary driver of the local economy. The Port owns and operates public wharves, storage facilities, freight handling facilities, warehouses, bulk material handling terminal, and a multi - purpose conference center. Port facilities have been a victim of graffiti. Cleanup costs include the re- direction of maintenance man- hours, and the spending of unbudgeted funds on cleaning materials and paint. Graffiti detracts from our ability to attract industrial and commercial activity, which negatively impacts economic activity. We support the effort to hold parents civilly liable in accordance with Chapter 41 of the Texas Family Code. We hope your efforts will raise awareness and reduce the incidence of this type of property crime. —412— Sincerely, John/P. LaRue Executive Director Corpus Christi Association of REALTORS® "Empowering Our Members to Succeed" OFFICERS CAROLE EDWARDS Chairman of the Board TERRI ELLER Vice Chair /Chair Elect TRAY BATES Secretary /7Feasurer MARSHA WILLIAMS Immediate Past . Chairman June 4, 2009 DeAnna McQueen Graffiti Coordinator The Corpus Christi Police Department 321 John Sartain Corpus Christi, Texas 78401 DIRECTORSI CHAR ATNIP ALAN CLOWER BRYAN JOHNSON GREG KIEL BRAD P.ADGETT SUZANNE Scon• LAURA SMITH CHERI SPERLING ROXANNE STRICKLAND/ TAR Director Roy DEL BOSQUE Ex-Officio /TAR Regional VP I NAR Director LAWRENCE YOUNG Ex.Ofcio ITAR Director PRESIDENT /CEO FRANCISCO AGUILAR Dear Ms. McQueen: The Corpus Christi Association of REALTORS® would like to express our support of the City of Corpus Christi and the Corpus Christi Police Department's efforts to conquer the growing graffiti problem plaguing our city. We are in complete support of the Graffiti Task Force working with the juvenile courts in helping defendants work off some of their community service hours by painting over graffiti throughout the city. In addition, you have our full support and endorsement for the proposed enforcement tool to sue the parents of juveniles involved in "high profile" cases which result in costly damage, if restitution is not ordered by a Judge in the case. Since our Association is a leader in the protection of private property rights, a proponent of growth and development in Corpus Christi and our members believe strongly that Corpus Christi bas the opportunity to be a premiere city for our residents and our visitors, we know these kinds activities must be curbed dramatically. We applaud your efforts and know that everyone involved is doing everything possible to eliminate this costly problem. Thank you. Sincerely, r Roy Del Bosque Interim Chief Executive Officer Corpus Christi Association of Realtors —413— Coastal Bend Council of Governments June 8, 2009 DeAnna McQueen, Graffiti Coordinator Corpus Christi Police Department- -- P.O. Box 9016 Corpus Christi, TX 78469 Dear Ms. McQueen, I would like to commend the Corpus Christi Police Department's Graffiti Task Force for their dedicated duty to investigate and reduce the problem of graffiti in the City of Corpus Christi. I fully support the Graffiti Task Force in all efforts to continue to prosecute offenders and support all legal punishment for this act of crime. Graffiti is not art, it is vandalism! Sincerely, Tht Lucia R. Rodriguez Criminal Justice Planner Coastal Bend Council of Governments LOCATION: 2910 LEOPARD STREET —414— PHONE: (361) 883 -5743 Jack Corpus Chamber of LCammace B ann' 9 TO New ODG P 0 Box 60574 Corpus Christi, Texas 78466 June 15, 2009 DeAnna McQueen Graffiti Coordinator Corpus Christi Police Dept. 321 John Sartain Corpus Christi, Texas 78401 Dear Ms. McQueen: This is in reference to your letter of May 6, 2009 regarding the Graffiti Task Force. On behalf of the Board of Directors of the Corpus Christi Black Chamber of Commerce, we want you to know that the City of Corpus Christi Graffiti Task Force has our support in this endeavor. We, too, feel that this problem is everyone's problem, and most importantly, feel that all communities should be involved in determining what's best to help eradicate this problem. Good luck on your presentation on June 30, 2009. Barring schedule conflicts, a representative from the Corpus Christi Black Chamber will be present. Should you have any questions, please don't hesitate to contact me. Sincerely, Sylvia, % Sylvia Tryon Oliver President & CEO Corpus Christi Black Chamber of Commerce 361 877 -3634 The purpose of the Corpus Christi Black Chamber is to develop, promote. and protect African American and minority businesses in the Corpus Christi area: to help support the advancement, education and economic growth of the African American and minority business community; and to serve as a business resource, a forum, and advocate for African American and minority business issues and a united voice for the African American and minority business community. www.blackchambercc.org —415— PADRE ISLES PROPERTY OWNERS ASSOCIATION 14015 FORTUNA BAY DRIVE . CORPUS CHRISTI, TX 784184327 . (361) 949-7025 . FAX (361) 949.7026. E -MAIL padreisles @sbcglobal.net May 5, 2009 DeAnna McQueen, Graffiti Coordinator The Corpus Christi Police Department 3210 John Sartain Corpus Christi, Texas 78401 Dear Ms. McQueen, The Padre Isles Property Owners Association is pleased to support the City of Corpus Christi and the Graffiti Task Force. Diane Gordon -King Executive Coordinator On behalf of the P)POA Board of Directors —416— Air Texas Department of Transportation 1701 So. Padre Island Drive, Corpus Christi, TX 78416 May 21, 2009 DeAnna McQueen, Graffiti Coordinator The Corpus Christi Police Department -321 John- Sartain Corpus Christi, Texas 78401 Dear Ms. McQueen: The Texas Department of Transportation Corpus Christi District supports the City of Corpus Christi's effort to conquer the city's graffiti problems. The cooperative working relationship that has been cultivated between the Graffiti Task Force and TxDOT has been mutually beneficial. The efforts of those involved have allowed TxDOT to redirect funding necessary for graffiti removal to other critical roadway maintenance functions. We believe these efforts have also yielded an aesthetic quality to the community that our citizens desire. Thank you for the opportunity to work with you in the past, and we look forward to continuing our partnership in this important -area. /Sincerely, _ I � ,, CI -.,-I nom• &: �. Russel W. Lenz, P.E. / Corpus Christi District.+TF gineer cc: Victor Pinon, Jr., P.E. — Director or Maintenance Frances Garza - PIO REDUCE CONGESTION • ENHANCE SAFETY • EXPAND ECONOMIC OPPORTUNITY • IMPROVE AIR QUALITY INCREASE THE VALUE & a-TRANSPORTATION ASSETS May 20, 2009 Mike Walsh Acting Chief of Police City of Corpus Christi P.O. Box 9016 Corpus Christi, Texas 78469 -9016 Dear Chief Walsh, Thank you for your recent correspondence regarding the Police Department's efforts over the past several years to curb graffiti throughout our community. As mentioned in your letter to me, graffiti not only makes our community look unattractive and unsafe, but is also expensive to remove. The Corpus Christi Downtown Management District commends the Corpus Christi Police Department's continued diligent work to remove graffiti and pursue offenders. We at DMD both applaud and support your efforts to look at new programs to address what appears to be a recent surge in graffiti activity throughout our community. Please count upon the Downtown Management District's continued support and endorsement of your efforts to eliminate graffiti in the City of Corpus Christi. Sincerely, Y. ohn Vidaurri, Executive Director Xc: Board of Directors —418— C COL EGE What's your dream? May 15, 2009 DeAnna McQueen Graffiti Coordinator Corpus Christi Police Department 321 Sartain Corpus Christi, TX 78401 Dear Ms. McQueen, Graffiti is a serious problem for the Coastal Bend with the potential for more destruction and damage every year. Although Del Mar College is fortunate to have few incidents of graffiti on our campuses, I understand the negative impact graffiti has on the larger community. I applaud the strides the Corpus Christi Police Department's Graffiti Task Force has made in the past two years to reduce the graffiti traffic and to punish those responsible for defacing public and private property. Please accept this letter as my personal endorsement, on behalf of the students and employees of Del Mar College, for your efforts. I wish you continued success in this initiative. Sincerely, /7 Mark Escamilla, Ph.D. President A LEARNING COLLEGE Office of the President • 101 Baldwin Bt4d1 9torpus Christi, Texas 78404 -3897 /2c1 \ ACM_ 1 Ofl4 • by /4L I\ ACM_ 1 CCo • ..n.n..r1alrn...-c.L, Anne Baker Chief Professional Officer 361- 853 -2505 United 1 . BOYS & GIRLS CLUB OF CORPUS CHRISTI, INC. www.bgccorpuschristi.org DeAnna McQueen, Graffiti Coordinator Corpus Christi Police Department 321 John Sartain CORPUS CHRISTI, TX 78401 May 7, 2009 DeAnna: Lisa Saenz, Director Greenwood 3902 Greenwood Drive Corpus Christi TX 78416 361 -853 -2586 361-853-1943 - Fax Patricia Amaya, Director Robstown 401 West Ligustrum Robstown, TX 78380 361 - 387 -2983 361 - 387 -1523 - Fax The teen members of the Boys & Girls Club have had first -hand knowledge and experience with the Graffiti Task Force. Our kids participated in a hugely successful partnership that took them out in the field to learn about and help remove graffiti from public areas. We strongly support the funding of this important program. The enclosed pictures speak volumes about the effectiveness of this community service program If you need them to be e- mailed so that you can use them in your presentation to City Council, just let me know (annebaker @the- i.net). Sincerely, Anne Baker —420 - T�_ Matatwn D4.... C... V:a. Serving Corpus Christi Youth stripes May 11, 2009 Ms. DeAnna McQueen, Graffiti Coordinator Corpus Christi Police Department 321 John Sartain Corpus Christi, TX 78401 Ms. McQueen: Street Address: 4525 Ayers Street Corpus Christi,Texas 78415 -1401 Tel: 361.884.2463 Fax: 361.884.2494 www.susser.com As a proud and grateful member of the community of Corpus Christi for the past seventy -plus years, the people of Stripes and Susser Holdings share your concern with the growing graffiti problem within our city. As families who make our home in this community, we wish to be able to walk freely about town without the symbols of crime and vandalism graffiti represents. We believe the people of Corpus Christi deserve to feel safe and comfortable walking our streets. As members of the business community, we count heavily on tourism to our great city, and we know that graffiti creates a clear disincentive for visitors to spend time out and about during their stay, and lessens the chance that they'll be back for a subsequent trip. For these reasons, we would like to offer our support of the Graffiti Task Force and the initiatives you are sponsoring to help rid the city of this unsightly, unsafe crime of vandalism. We appreciate the strong track record of investigation and prosecution the city is building, and wish you the best as you move forward with new tactics and strategies to stop graffiti in Corpus Christi. Please let us know how we can demonstrate our support for you in the upcoming weeks. As stated by Mike Walsh, Acting Chief of Police, graffiti is everyone's problem, and we'd like to help solve it. Best regards, Rod Martin VP Marketing Stripes LLC VALERO Calallen Independent School District 4205 Wildcat Drive • Corpus Christi, Texas 78410 • (361) 242 -5600 FAX (361) 242 -5619 Business Office • FAX (361) 242 -5608 Curriculum FAX (361) 242 -7552 Personnel • (361) 242 -5972 Special Programs • FAX (361) 242 -5620 Superintendent May 13, 2009 To: City of Corpus Christi and Graffiti Task Force From: Dr. Arturo Almendarez Calallen ISD, Superintendent Re: Graffiti Task Force Arturo Almendarez, Ed.D. Superintendent of Schools On behalf of Calallen ISD and the Northwest Community, I would like to thank the City of Corpus Christi and the Graffiti Task force for all their efforts to control the ever- growing graffiti problem in our area. Without a doubt, graffiti throughout the city diminishes our attempt to show the surrounding community and visitors that our citizens take pride in our surroundings and in our environment. The diligent effort by the task force to conquer this battle is fully endorsed by Calallen ISD and the Northwest Community. We fully support any and all measures that will help curtail the unattractive and unsafe practices by graffitist. We understand that measures including the civil prosecution of parents of juveniles are being considered to deal with this problem. We endorse such measures in order to deal with these types of "high profile" cases because we believe it will assist in deterring others from following in the same path if they know such judgments will be ordered by the courts. Thank you for your continued efforts in beautifying Corpus Christi by ridding our streets and neighborhoods of graffiti defaced areas. We appreciate the Corpus Christi Police Department's Graffiti Task Force painstaking efforts to keep our community safe and beautiful. Sincerely, Arturo Almendarez, Ed.D. 0 ci \-) ■..s\ c7r Superintendent of Schools —422— May 7, 2009 Office of the Superintendent D. Scott Elliff Superintendent of Schools CORPUS CHF S 1 i iND2P E NDEN J SCHOOL D.'STRiC T P.O. Box 110 • 801 Leopard Street • Corpus Christi, Texas 78403 -0110 Office: 361 /886 -9003 Fax: 361/886 -9109 Website: www.ccisd.us DeAnna McQueen, Graffiti Coordinator Corpus Christi Police Department 321 John Sartain Corpus Christi, Texas 78401 Dear Ms. McQueen, For the past few years the Corpus Christi Independent School District has felt the touch of graffiti. Many of our campuses have been violated by taggers and the effects are felt throughout our many communities. Please be assured that the Corpus Christi Independent School District supports the many different efforts the City of Corpus Christi and the Corpus Christi Police Department are making to combat the plague of graffiti. I am aware that you have already partnered with our Police Department and have communicated my support to Chief Carlos Cavazos in this endeavor. As part of the community we applaud your efforts to improve the quality of life for our students, staff, and families members affected by this crime. Sincerely, Scott Elliff uperintendent of Schools Every student a iecrner...Every ieari$Segraducte...Every graduate a success' Of CCISD Developing learflnd41in4 April 14,2009 Ms. DeAnna McQueen, Graffiti Coordinator Corpus Christi Police Department 321 John Sartain Corpus Christi, TX 78401 Dear Ms. McQueen: OFFICE OF POLICE SERVICES 450 Sunbelt Drive • Corpus Christi, Texas 78408 Office: 361/289 -9247 • Fax: 361/289 -5693 www.ccisd.us The Corpus Christi ISD Police Department recognizes that graffiti is a community wide problem. We applaud the efforts of the City of Corpus Christi and Corpus Christi Police Department to combat this problem by holding all involved parties accountable. In this fight you have the full support of the Corpus Christi ISD Police Department. We stand ready to do our part and aid you and your supporters, in fighting this scourge which so badly affects the quality of life in our city. Since Carlos Cavazos, CCISD Police Department CC:jjt Every student a learner...every-4141er a graduate...every graduate a success! LAMAR Lamar Advertising of Corpus Christi, TX April 21, 2009 DeAnna McQueen, Graffiti Coordinator The Corpus Christi Police Department 321 John Sartain Corpus Christi, Texas 78401 To Whom It May Concern: Being victimized by graffiti vandals on several occasions, Lamar Outdoor Advertising of Corpus Christi supports the proposal of the City of Corpus Christi and the Corpus Christi Police Department in filing lawsuits against the parents of juvenile graffiti vandals. We believe this will be a major step forward in ridding our city of this destructive behavior that is very costly to individuals and the city alike. Kevin Piland Sales Manager Lamar Corpus Christi Cc: Mark Reynolds Vice President/General Manager Lamar Corpus Christi 133 N. Padre Island Drive • Corpus Christi, Texas 78406 361.299.5550 • Fax 361.299.2537 Claudia Lobell Chief Executive claudia.lobell@cu.nueces.tx.us Bill Roberts, E.M.C. (361) 88S•0313 hill.roberls@co.nueces.tx.us Marie Carrales Secretary roarie.carrales@co.ntteces.tx.us SAMUEL L. NEAL, jR. County Judge June 9, 2009 DeAnna McQueen, Graffiti Coordinator The Corpus Christi Police Department 321 John Sartain Corpus Christi, TX 78401 Dear Ms. McQueen: This letter is in support of the City of Corpus Christi and the Graffiti Task Force efforts to remove graffiti, investigate cases and prosecute offenders. I am aware of the statistics based on those efforts and they are very impressive. I realize, too, that the more support you have, the better able the Task Force will be able to accomplish its mission. Governmental communities, such as ours, must join hands in supporting each other with this issue. The enforcement tool being proposed to civilly sue parents of juveniles involved in "high profile" cases that result in costly damage seems to be justifiable when restitution is not ordered by a Judge in the case. You have my full support for the members of the Graffiti Task Force going before the City Council on June 30, 2009. The report from the National Crime Prevention Council that says graffiti costs American communities more than $8 billion each year is appalling and must be stopped by reasonable measures, such as making sure parents are held accountable for their children's actions. Graffiti is everyone's problem. Sincerely, Samuel L. Neal, Jr. —426— JOHN S. GALVAN CHIEF DEPUTY June 4, 2009 Jim Kaelin SHERIFF 4til' NUECES COUNTY SHERIFF'S OFFICE P.O. BOX 1940 CORPUS CHRISTI, TX 78403 TELEPHONE: (361) 887 -2222 FACSIMILE: (361) 887 -2206 jim.kaelin@co.nueces.1x.us DeAnna McQueen Graffiti Coordinator Corpus Christi Police Department 321 John Sartain Corpus Christi, TX 78401 PETER B. PERALTA ASSISTANT CHIEF DEPUTY M. MCKENZIE CHIEF OF JAIL ADMINISTRATION Dear Ms. McQueen: As an elected official and Sheriff of Nueces County, I applaud the commitment and diligent work being performed by the Corpus Christi Police Department Graffiti Task Force in removing graffiti, investigating cases, and prosecuting the offenders of these criminal acts. I pledge my support and offer the Sheriffs Office resources to help combat the graffiti issues that face our community. Please accept this letter as an endorsement of' the Department's Graffiti Task Force's preventative and enforcement initiatives in their attempts to reduce these property crimes. At this time, my intentions are to be present in support of the Graffiti Task Force audience before the City Council on June 30, 2009. Thank you for the invitation and I look forward to their presentation. If you should need to discuss this matter further, please do not hesitate to contact me at 361 - 887 -2222. Sincerely, aelin Sheriff Nueces County, Texas —427— 11 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Third quarter FY09 Health and Risk Management Claims Report STAFF PRESENTER(S): Name Title /Position 1. Cynthia Garcia Director 2. 3. OUTSIDE PRESENTER(S): Department Human Resources Name Title /Position Organization 1. 2. 3. BACKGROUND: Because of the unpredictability and fluctuation of the activity in Health Insurance, Workers Compensation, and General Liability, the Council has asked for quarterly presentations of incurred costs, and amounts paid in the Health Benefits/ Risk Management Fund. REQUIRED COUNCIL ACTION: None PowerPoint Supplemental Information 11 EJL_ Cynthia Garcia Director, Human Resources CynthiaG@cctexas.com 361- 826 -3315 —431— City of Corpus Christi Department of Human Resources Health and Risk Management Claims Report Report for 3rd Quarter Period Ending April 30, 2009 Table of Contents Risk Fund Health Plan Update 3 Workers' Compensation 9 General Liabilities 14 2 Health Plans This report will provide an overview of the City's Self Insured Health Plans, Citicare (Civilian), Citicare Alternate (Civilian), Citicare Fire and Citicare Public Safety expense activities through the third quarter of fiscal year 2009 (August - April) with some comparisons to fiscal years 2007 and 2008. It is important to note that in a self - funded environment there will be month to month variations in claim expenses paid. Expenses for a complete plan year provides a more comprehensive view of total plan costs. These quarterly reports illustrate plan activities at a snap shot in time, and assist in communicating the financial status of the health plans to decision makers. Health Plans As of the third quarter of FY09, there were an average of 1,912 active employees enrolled in Citicare, 56 in Citicare Alternate, 385 in Citicare Fire, and 453 enrolled in Citicare Public Safety. As Graph H -1 shows in true numbers, the ratio of employees to dependents insured under Citicare is almost 1:1, whereas the ratio for Fire & Public Safety plans is almost 2:1. This is the first year the Citicare Alternate Plan has been offered. 2,500 2,000 1,500 1,000 500 FY 2009 Average Enrollment by Plan for Active Employees and Dependents Graph H -1 Citicare Fire Public Safety rannannezi Alternate ® Employee 1,912 385 453 56 o Dependent 2,109 771 889 89 3 As shown by Graph H -2, as of third quarter FY09 there were an average of 324 Retirees (14 %) enrolled in Citicare compared to 1,912 active employees, 112 Retirees (22 %) in Citicare Fire compared to 385 active employees, 131 Retirees (22 %) enrolled in Citicare Public Safety compared to 453 active employees. The Citicare Alternate plan is not offered to retirees. 2,500 2,000 1,500 1,000 500 0 Graph H -2 FY 2009 Average Enrollment by Plan for Active Employees and Retirees Citicare Fire Public Safety 0 Employee 1,912 385 453 ❑ Retiree 324 112 131 Graph H -3 on the following page, shows medical, stop loss and pharmacy expenses paid for all plans combined through the third quarter of FY09. As illustrated in these graphs, the overall costs for all plans in FY09 increased 4% in claims expense paid compared to third quarter FY08. Total medical expenses increased from FY07 to FY08. However, pharmacy expenses have increased each year; an 18% increase from FY07 to FY08, and a 13% increase from FY08 to FY09. 4 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Total Medical & Pharmacy Expenses Paid Graph 11-3 All Plans as of April 30 1 269,027 $13,556,334 .12 .1 49,496 2,77 FY07 FY08 FY09 ■ Medical o RX The following graphs H -4 & H -5 show the amount paid for medical & pharmacy expenses per health plan for Active employees (including Cobra participants) as compared to Retiree expenses. Graph H -4 shows that 15% of the Citicare plan's total medical expenses paid are for Retirees, 31% of total medical expenses paid in the Fire plan are for Retirees, and in the Public Safety plan 38% of total medical expenses paid are for Retirees. Graph H -5 shows that 29% of the Citicare's plan's total pharmacy expenses paid are for Retirees, 50% of total pharmacy expenses paid in the Fire plan are for Retirees, and in the Public Safety plan 38% of total pharmacy expenses paid are for Retirees. 5 FY09 Total Medical Expenses by Subscriber Type Period Ended April 30 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Graph H -4 Citicare Fire Public Safety u Employee & Cobra $7,263,799 $1,641,639 $1,563,260 ❑ Retiree $1,296,695 $739,035 $976,532 FY09 Total Pharmacy Expenses by Subscriber Type Period Ended April 30 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Graph H -5 Citicare Fire Public Safety El Employee & Cobra $1,305,314 $473,680 $546,678 ❑ Retiree $541,771 $472,394 $339,770 6 Graph H -6 and Table H -1, displayed below, show average cost per employee for medical and pharmacy expenses combined, where employee count is based on active employees, retirees and Cobra participants. The Graph also shows that Citicare had a 20% increase in medical/pharmacy expenses per employee when comparing third quarter Fiscal Year 2008 to Fiscal Year 2009. Citicare Public Safety had a 22% decrease in cost per employee, and Citicare Fire had a 4.5% increase in medical costs per employee. Citicare Alternate was not offered until FY09. Comparison of 3rd Quarter Average Monthly Cost Per Employee (Includes Retirees) of Total Medical and Pharmacy Plan Expenses FY08 Average Monthly Claims Cost per Employee Period Ended April 30 Public Safety. $838,42% Alternate, $ -, 0% Citicare, $429 , 22% Fire, $712 , 36% Graph H -6 FY09 Average Monthly Claims Cost per Employee Period Ended April 30 Alternate, $173, 8% Public Safely, $652 , 31% Table H -1 Stop Loss Activity Plan Year: 2008 -2009 There are currently six stop loss cases. 7 Citicare Fire Public Safe Alternate Medical Pharmacy Avg per Medical Pharmacy Avg per Medical Phamlacy Avg per Medical Pharmacy Avg per Employee Employee Employee Employee FY08 $ 351 $ 78 $ 429 $ 512 $ 199 $ 712 $ 684 $ 154 $ 838 $ 0 $ 0 $ 0 FY09 $ 424 $ 91 $ 515 $ 532 $ 211 $ 743 $ 484 $ 169 $ 652 $ 149 $ 23 $ 173 Stop Loss Activity Plan Year: 2008 -2009 There are currently six stop loss cases. 7 Health Plan Budget vs. Actual Table H -2 shows total expenses by plan including medical and pharmacy claims, Third Party administrator fees, and Specific Stop Loss premiums. Table H -2 Health Plan Actual Expenses (Active Employees, Retirees, and Cobra) Plan Medical RX Admin Fees (Stop Loss & TPA Fees) FY09 Total Citicare $ 8,560,494 $ 1,847,085 $ 1,302,329 $ 11,709,908 Citicare Fire $ 2,380,673 $ 946,075 $ 294,811 $ 3,621,559 Citicare Public Safety $ 2,539,791 $ 886,447 $ 349,152 $ 3,775,390 Citicare Alternate $ 75,375 $ 11,823 $ 32,408 $ 119,606 Total: $ 13,556,334 $ 3,691,430 $ 1,978,700 $ 19,226,464 Graph H -7 and Table H -3 show the total amounts budgeted for health claims, third party administrator fees, stop loss insurance, life insurance, disability, cafeteria plan and administrative expenses for FY09 in contrast to the expenditures through the third quarter FY09. Although some of the expenses remain constant each quarter, claims expenditures vary from quarter to quarter based on utilization. Claims activity this year through the third quarter is proportionately on target with the budgeted amounts. We will monitor claims activity closely on a monthly basis to determine if claims costs are going up disproportionately compared to budgeted amounts. Graph H -7 Health Plan Annual Budgeted Expenses Fiscal Year 2008 -2009 Life Insurance Dia Try Cafeteria Plan 0% 0% Stop Loss Ins 5% TPA Fee 5% Admin 1% Health Claims 88% Annual Budgeted % of Total Health Claims $ 23,814,119 88% TPA Fee $ 1,318,908 5% Stop Loss Ins. $ 1,459,508 5% Life Insurance $ 95,000 0% Disability $ 147,651 1% Cafeteria Plan $ 20,000 0% Admin $ 339,817 1% Total: $ 27,195,003 Health Plan Actual Expenses 3rd Quarter FY09 (Aug. -Apr.) Life Insurance 0% Stop Loss Ins 5% TPA Fee 5% Disability 1% Cafeteria Plan 0% Admin 1% Health Claims 88% Table H -3 3rd Quarter Spent Actual % of Total Health Claims $ 17,653,128 88% TPA Fee $ 958,178 5% Stop Loss Ins. $ 1,056,898 5% Life Insurance $ 69,564 0% Disability $ 106,184 1% Cafeteria Plan $ 15,369 0% Admin $ 143,981 1% Total: $ 20,003,303 8 Risk Management This report will illustrate the Workers Compensation and General Liability claims activity that occurred through the third quarter of fiscal year 2009. Workers' Compensation The total number of claims filed for Workers Compensation has decreased 2.6% during the first nine months of FY09, compared to the number of claims filed in FY08. As illustrated by Graph WC -1 shown below and Table WC -1 shown on the next page, the Fire, Police, Wastewater, Storm Water and Parks departments show decreases in the number of claims filed, however the Solid Waste department increased 53 %, Water increased 16 %, and Gas increased 28 %. The number of Police claims decreased from 188 to 159, down by 15 %; Fire had 100 claims in third quarter 2008 and 74 in third quarter FY2009, down by 26 %. The number of claims filed by the Wastewater department decreased 22 %, the Parks department decreased 9 %, and the Storm Water department decreased 13% in third quarter FY09 compared to third quarter FY08. All other departments had insignificant increases /decreases. 800 700 600 500 400 300 200 100 0 Graph WC -1 Year -To -Date Claims Count Comparison (Period Ending April 30) FY07 FY08 FY09 o All Other ■ Park & Recreation Fire o Gas o Storm Water o Water ❑ Solid Waste o Wastewater o Streets ▪ Police 9 Table WC -1 Cumulative 3 "' Quarter Comparison Claim Counts Department FY07 FY08 FY09 % Change FY08 -FY09 Police 188 188 159 -15.4% Streets 13 27 27 0.0% Wastewater 36 54 42 -22.2% Solid Waste 75 60 92 53.3% Water 37 32 37 15.6% Storm Water 10 15 13 -13.3% Gas 32 25 32 28.0% Fire 92 100 74 -26.0% Park & Recreation 48 65 59 -9.2% All Other 124 129 142 10.1% Total: 655 695 677 -2.6% Incurred costs have increased in third quarter FY09 vs. FY08 due to a large Police department claim that was filed in March 2009, going from $1,178,654 in FY08 to $2,057,901 in FY09, up 75% as shown by Graph WC -2 and Table WC -2. If we remove the large claim from the equation, incurred costs City wide have actually decreased 25 %. With the large claim, incurred costs for Police increased 314 %, however excluding the large claim, Police incurred costs actually decreased 45 %. Storm Water had the largest increase (671 %) while Wastewater had the largest decrease (81 %) in incurred costs. Incurred costs also increased in Solid Waste (51 %), Gas (49 %) and Fire (10 %). Incurred costs decreased in Parks (67 %), Streets (27 %), and Water (38 %). $2,500,000 - $2,000,000 $1,500,000 $1,000,000 $500,000 Year -To -Date Incurred Cost Comparison (Period Ending April 30) FY07 FY08 FY09 Graph WC -2 D All Other o Park & Recreation Fire o Gas ▪ Storm Water o Water O Solid Waste O Wastewater o Streets o Police 10 Cumulative 3 "' Quarter Comparison Table WC -2 Incurred Costs Department FY07 FY08 FY09 % Change FY08 to FY09 Police $ 227,177 $ 327,683 $ 1,356,900 3141% Streets $ 96,816 $ 82,371 $ 59,790 -27.4% Wastewater $ 76,637 $ 167,347 $ 31,885 -80.9% Solid Waste $ 168,381 $ 59,495 $ 89,963 51.2% Water $ 64,703 $ 72,520 $ 44,920 -38.1% Storm Water $ 16,857 $ 17,604 $ 135,662 670.6% Gas $ 21 706 $ 32 287 $ 47 988 48.6% Fire $ 119,137 $ 91,807 $ 100,912 9.9% Park & Recreation $ 114,052 $ 145,114 $ 47,778 -67.1% All Other $ 223,391 $ 182,426 $ 142,103 -22.1% Total: $ 1,128,856 $ 1,178,654 $ 2,057,901 74.6% Graph WC -3, compares incurred cost to actual paid cost on claims filed in the current fiscal year. Our incurred cost as of the third quarter of FY09 was $2,057,901; paid cost totaled $561,050. Excluding the large Police department claim, incurred costs were $882,185 in FY09; a decrease of 25% from FY08. Graph WC -3 Incu rred Costs vs. Pa d Costs FY07 FY08 FY09 o Incurred Costs o Paid Costs 11 Graph WC -4, represents dollars paid during the third quarter for claims filed in previous years. The total is $1,270,747, of which 67% were payments on claims filed in FY08. Dollars Paid in Current Year for Prior Years' Claims $700,000 $600,000 $500,000 $400,000 300,000, $200,000 $128,292 $11,288 <;$11,350;. to'FY05 FY05 FY06 FY07 FY08. Graph WC -5 shown next provides claims count data by the type of accident occurring during the first nine months of each of the recent fiscal years. The number of accidents due to falls /slips and strains /injuries continue to be fairly consistent from year to year and are two of the most common types of accident the City incurs. 800 - 700 600 500 400 300 200 100 0 Year -To -Date Claims Count by Type of Accident (Period Ending April 30) FY07 FY08 FY09 o All Other ❑ Struck /Injured o Striking Against/Stepping On ■ Strain /Injury o Police Apprehension o Motor Vehicle o Foreign Body in Eye Falls /Slips ❑ Cuts/Scrapes ❑ Caught Between o Burns /Scalds o Animal /Insect Bite Graph WC -5 12 Graph WC -6 (Table WC -3) shown next gives claim counts by type of injury. Consistently, strains are the most common type of injury sustained. Sprains, lacerations and contusions are other frequent injury types. 800 700 600 500 400 300 200 100 0 Year -To -Date Claims Count by Type of Injury (Period Ending April 30) FY07 FY08 FY09 Graph WC -6 ▪ All Other Injuries o Strain ■ Sprain o Puncture o Glasses /Contacts /Artificial o Multiple Physical Injuries o Laceration ❑ Inflamation o Foreign Body o Contusion (bruise) D Burn Table WC -3 shows that the type of injury that has increased the most in FY09 is Inflammation, up 107 %, followed by Glasses /Contacts /Artificial, up 100 %. Overall, the total number of injuries has decreased 3% from 3rd quarter FY08 to 3rd quarter FY09. Year -To -Date Clams Count (Period Ended April by Type of Injury 30) Claim Type FY07 FY08 FY09 % Change FY08 to FY09 Burn 4 12 13 8.3% Contusion (bruise) 95 103 130 26.2% Foreign Body 20 17 23 35.3% Inflammation 17 27 56 107.4% Laceration 73 84 95 13.1% Multiple Physical Injuries 7 12 20 66.7% Glasses /Contacts /Artificial 1 1 2 100.0% Puncture 36 43 31 -27.9% Sprain 54 61 54 -11.5% Strain 148 170 210 23.5% All Other Injuries 200 165 43 -73.9% Total: 655 695 677 -2.6% Table WC -3 13 General Liabilities General Liability claims and lawsuits filed in the 3rd quarter of FY09, compared to 3rd quarter FY08, decreased by 1.3 %, from 558 to 551, as shown in Graph GL -1 and Table GL -1. The largest increases were in Storm Water (29 %) and Streets (17 %), and the largest decreases were in Gas (47 %) and Water (26 %). Of all claims filed in the first nine months of FY09, 6% are lawsuits as shown in Graph GL -1A. 600 500 400 300 200 100 0 FY07 Liability Claims Count by Department Graph GL -1 Period Ended April 30 FY08 FY09 OA!! Other ■ Park & Recreation ❑ Fire ® Gas ❑ Storm Water o Water ❑ Solid Waste ❑ Wastewater Streets ❑ Police Table GL -1 General Liability Claims Count By Department (Period Ended April 30) Department FY07 FY08 FY09 % Change FY08 to FY09 Police 102 115 128 11.3% Streets 79 52 61 17.3% Wastewater 72 75 57 -24.0% Solid Waste 49 50 45 -10.0% Water 43 72 53 -26.4% Storm Water 30 24 31 29.2% Gas 27 44 23 -47.7% Fire 27 28 25 -10.7% Park & Recreation 32 35 29 -17.1% All Other 77 63 99 57.1% Total: 538 558 551 -1.3% Graph GL -1A FY09 Percent of Claims and Lawsuits 6% 94% E Claims L. Lawsuits 14 As shown below in Graph and Table GL -2, overall incurred costs increased 132% in 3`d quarter FY09 as compared to 3rd quarter FY08. Incurred cost for Police claims continue as the largest of all departments, with a 154% increase. Currently, there are seven excessive force claims & lawsuits, each incurring over $100,000 each, causing the high increase in overall incurred costs. We also saw increases in Water (3775 %), Solid Waste (100 %), and Gas (22 %). There were decreases in Streets (93 %) and Storm Water (55 %). $2,500,0 00-;. $2,000,000 $1,500,000 $1,000,000 $500,000 $- General Liability Incurred Costs by Department Graph GL -2 Period Ended Apr 'I 30 FYO FY08 FY09 o All Other Park & Recreation o Fire o Gas o Storm Water ® Water o Solid Waste ❑ Wastewater o Streets o Police Table GL -2 General Liability Incurred Costs By Department Period Ended April 30 Department FY07 FY08 FY09 % Change FY08 to FY09 Police $ 258,560 $ 477,952 $ 1,215,109 1542% Streets $ 34,987 $ 55,030 $ 3,845 -93.0% Wastewater $ 167,617 $ 18,093 $ 13,779 -23.8% Solid Waste $ 34,257 $ 43,253 $ 86,582 100.2% Water $ 42,345 $ 13,517 $ 523,706 3774.5% Storm Water $ 9,143 $ 30,306 $ 13,714 -547% Gas $ 5,303 $ 19,183 $ 23,397 22.0% Fire $ 7,423 $ 18,993 $ 19,805 43% Parks $ 5,316 $ 34,592 $ 37,964 9.7% All Other $ 143,725 $ 147,465 $ 52,091 -64.7% Total: $ 708,677 $ 858,384 $ 1,989,992 131.8% 15 As shown in Graph GL -3 below, the percent of incurred costs actually paid out was 31% in FY07, 61% in FY08 and 27% in FY09. The total number of claims from third quarter FY08 to third quarter FY09 decreased 1.3 %, the total incurred costs increased 132 %, and the paid costs increased 1.1 %. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Incurred Costs vs. Paid Costs Period Ended April 30 Graph GL -3 $1,989,992 $858,384 $708,677 $221,028 $521,615 $527,607 FY07 FY08 FY09 D Incurred Costs o Paid Costs As show in Graphs GL -2A and GL -3A, the majority of our incurred costs are from lawsuits, however the ratio of incurred costs to paid costs is 50 -50. Graph GL -2A Incurred Dollars Claims vs. Lawsuits Graph GL -3A 50% Paid Dollars Claims vs. Lawsuits 50% ❑ Claims 0 Law suits 16 General Liability Claims Types The following Graph GL -4 and Table GL -3 show claim counts by type of claim for General Liability claims. Damage to vehicles and other property damage claims are the most frequent type of claims filed. Personal injury claims and water damage claims are the next most common. The claim types with the largest increases from FY08 to FY09 are Personal Injury (25 %) and Property Damage related claims (21 %). Graph GL -4 500 *t 400 300 200 100 General Liability Claim Types Period Ended April 30 0 FY07 FY08 FY09 ▪ All Other o Fire o Employment o Policies /Practices /Contract ® Personal Injury o Police ❑ Water/Waste Damage o Property Damage o Vehicle Damage The personal injury category includes claim types such as bodily injury and street /sidewalk slip & fall claims. The property damage category includes damage caused by incidents such as utility cable damage, general property damage, and refuse truck damage. Table GL -3 General Liability Claim Types (Period Ended April 30) Claim Type FY07 FY08 FY09 % Change FY08 to FY09 Vehicle Damage 264 280 240 -14.3% Property Damage 183 157 190 21.0% Water /Waste Damage 37 38 38 0.0% Police 13 20 18 -10.0% Personal Injury 28 32 40 25.0% Policies /Practices /Contract 4 10 5 -50.0% Employment 4 8 9 12.5% Fire 0 1 0 - 100.0% All Other 5 12 11 -8.3% Total: 538 558 551 -1.3% 17 Graph GL -5 charts the amount of money paid during FY2009 for claims filed in previous years. The total amount paid is $1,727,533, of which 47% were payments on FY08 claims and 47% were payments on FY07 claims. $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Dollars Paid in Current FY for Prior Years' Claims Graph GL -5 Period Ended April 30 $938,582 $824,910 $72,480 I I $- $28.076 Prior to FY05 FY05 FY06 FY07 FY08 Motor Vehicle Accidents At the end of the third quarter of FY09, the number of total motor vehicle accidents was 149 compared to 205 for third quarter FY08, down 27 %. The number of total preventable accidents through third quarter FY09 was 83, compared to 88 in FY08, down 6 %. From year to year, preventable accidents consistently make up approximately 45% of the total number of accidents. 225 - 200 175 150 125 100 75 50 25 0 217 City Vehicle Accidents 3rd Quarter Annual Comparison 205 Graph GL -6 149 90 88 83 2007 2008 2009 0 Number of Accidents 0 Number of Pre■entables 18 Health and Risk Management Claims Report Report to City Council 3rd Quarter Report - Fiscal Year 2009 Presented 06/30/2009 Plan Enrollment 2,500 2,000 1,500 1,000 500 0 FY 2009 Average Enrollment by Plan for Active Employees and Dependents Citicare Fire Public Safety FY 2009 Average Enrollment There has been no significant increase or decrease that would impact the plans. Alternate ® Employee o Dependent 1,912 385 453 56 2,109 771 889 89 Medical & Pharmacy Expenses $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000, 000 Total Medical & Pharmacy Expenses Paid All Plans as of April 30 $13,269,027 $13,556,334 $12,149,496 $2,776,337 $3,275,388 $3,691,430 FY07 FY08 FY09 FY 2009 Total Medical & Pharmacy Expenses (compared to FYO7 & FY08 Including stop loss expenses) Medical •FY08 to FY09: 2% increase Pharmacy .FY08 to FY09: 13% increase 0 Medical 0 RX Total Medical Expenses by Subscriber Type FY09 Total Medical Expenses by Subscriber Type Period Ended April 30 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2.,000,000 $1,000,000 $- Citica re Fire Public Safety ® Employee & Cobra ❑ Retiree $7,263,799 $1,641,639 $1,563,260 $1,296,695 $739,035 $976,532 Retirees Citicare: 15% Citicare Fire: 31% Citicare PS: 38% Active Employees Citicare: 85% Citicare Fire: 69% Citicare PS: 62% Total Pharmacy Expenses by Subscriber Type FY09 Total Pharmacy Expenses by Subscriber Type Period Ended April 30 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Citica re Fire Public Safety o Employee & Cobra ❑ Retiree $1,305,314 $473,680 $546,678 $541,771 $472,394 $339,770 Retirees Citicare: 29% Citicare Fire: 50% Citicare PS: 38% Active Employees Citicare: 71% Citicare Fire: 50% Citicare PS: 62% FY09 Cost per Employee Performance Comparison of Average Cost Per Employee (Includes Retirees) (Total Medical and Pharmacy Expenses) FY08 Average Monthly Claims Cost per Employee Period Ended April 30 Public Safety, $838 , 42% Alternate. $ -. 0 14 FY09 Average Monthly Claims Cost per Employee Period Ended April 30 Alternate. $173. 8% Public Safety. $652. 31% Citicare. $515. 41% 25% /,/ Fire. $743, 36% FY08 to FY09 Change in Average Cost Per Employee by Plan (Pharmacy + Medical costs compared to FY081 Citicare: 20% increase Fire: 4.5% increase Police: 22% decrease Health Plan Actual Expenses Period Ended April 30 Medical RX Admin Fees Total (TPA & Stop Loss) Citicare S 3 500 494 S 1 04; 035 1 382 329 $ 11,709,908 Fire 3 940 075 294.811 $ 3,621,559 Public Safety 3.539 791 880 447 349.15'7 $ 3,775,390 Alternate 0 11,023 32,405 $ 119,606 Totals: $ 13,556,334 $ 3,691,430 $ 1,978,700 $ 19,226,464 FY09 Annual Budget vs. 3rd Quarter Actuals Health Plan Annual Budgeted Expenses Fiscal Year 2008 -2009 Disability Life Insurance 1 Cafeteria Plan 0% 0% Stop Loss Ina 5% TPA Fee 5% Admin 1% Health Claims 88% Health Plan Actual Expenses 3rd Quarter FY09 (Aug. -Apr.) Disability Life Insurance 1% 0% Stop Loss Ins. 5% TPA 5% Cafeteria Plan 0% Admin 1% Health Claims 88% Annual Budgeted % of Total 3,d Quarter Spent Actual % of Total Health Claims 323,814,119 88% Health Claims 3 1 653,128 88% TPA Fee 3 1,318,908 5% TPA Fee 958,178 5°A Stop Loss Ins. $ 1,459,508 5% Stop Loss Ins. $ 1,056,898 5% Life Insurance $ 95,000 0% Life Insurance $ 69,564 0% Disability $ 147,651 1% Disability $ 106,184 1% Cafeteria Plan $ 20,000 0% Cafeteria Plan $ 15,369 0% Admin $ 339,817 1% Admin $ 143,981 1% Total: $27,195,003 Total: $ 20,003,303 800 700 600 500 400 300 200 100 0 Workers' Comp Performance Year -To -Date Claims Count Comparison (Period Ending April 30) FY07 FY08 FY09 o All Other o Park & Recreation o Fire o Gas o Storm Water o Water o Solid Waste o Wastewater o Streets o Police Total claims count 1 2.6% • Police 1 15 • Storm Water 1 13% • Solid Waste T 53% • Gas128% • Fire 126 • Water T 16% • Wastewater 1 22% Workers' Comp Costs Performance $2,500,000 - $2,000,000 $1,500,000 $1,000,000 $500,000 $- Year -To -Date Incurred Cost Comparison (Period Ending April 30) FY07 FY08 FY09 o All Other o Park & Recreation o Fire o Gas ❑ Storm Water o Water o Solid Waste o Wastewater o Streets ❑ Police Total incurred costs* T 75% • Police T 314% • Wastewater 81% •Storm water T 671 % • Gast 49% • Solid Waste T 51% • Parks 1 67 • Streets 27% • Water J 38 * Excluding a large Police Department claim filed in March 2009, incurred costs City -wide have actually decreased 25% in FY09. Workers' Comp Paid on Prior Year Claims $900,000 $800,000 $700, 000 $600, 000 $500,000 $400,000 $300, 000 $200, 000 $100,000 $ Dollars Paid in Current Year for Prior Years' Claims $853,454 • $853,454 paid for FY08 • $417,294 paid for years prior to FY08 • $1,270,747 total paid $266,364 $128,292 $11,288 $11,350 Prior to FY05 FY05 FY06 FY07 FY08 General Liabilities Performance: Count (Including all claims and lawsuits) 600 500 400 300 200 100 0 Liability Claims Count by Department Period Ended April 30 FY07 FYOS FY09 o All Other ■ Park & Recreation ❑ Fire o Gas ❑ Storm Water o Water ❑ Solid Waste ❑ Wastewater o Streets o Police •Overall Total J 1.3% • Storm Water T 29% • Streets T 17% • Gas 47% • Water �, 26% FY09 Percent of Claims and Lawsuits 6% 94% ❑ Claims ® Lawsuits General Liabilities Performance: Cost $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 General Liability Incurred Costs by Department Period Ended April 30 FY07 FY08 FY09 ❑ All Other Park & Recreation ❑ Fire o Gas ❑ Storm Water o Water ❑ Solid Waste ❑ Wastewater n Streets ❑ Police • Overall Incurred Cost* T 132% • Police T 154% • Water T 3775% • Solid Waste T 100% • Gas T 22% • Streets 93% • Storm Water J. 55% • There are currently seven excessive force claims & lawsuits 117 the Police Department, each incurring over $100,000 each causing the high increase 117 overall incurred costs r Lawsuits made up 6% of all General Liabilities Performance: claims filed Claims vs. Lawsuits 80% of incurred costs related to lawsuits Paid dollars ratio is 50 -50 between claims & lawsuits Incurred Dollars Claims vs. Lawsuits ❑ Claims o Lawsuits 50% Paid Dollars Claims vs. Lawsuits 50% ❑ Claims ® Lawsuits General Liabilities Paid on Prior Year Claims $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Dollars Paid in Current FY for Prior Years' Claims Period Ended April 30 $824,910 $72,480 $- $28,076 Prior to FY05 FY05 ,FY06 F Y07 $938,582 FY08 • $938,582 paid for FY08 claims • $925,466 paid for all other previous years' claims • $1,727,533 total paid 225 - 200 175 150 125 - 100 - 75 - 50 - 25 - 0- City Vehicle Accidents Status 217 City Vehicle Accidents 3rd Quarter Annual Comparison 205 • 149 Accidents (excl. non - classifiable incidences) • 83 Preventables • # of accidents j, 27% 149 90 88 2007 2008 2009 ❑ Number of Accidents ❑ Number of Preventables 83 Questions & Comments V CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Presentation of FY 09 -10 Internal Service, Special Revenue and Debt Service Funds. STAFF PRESENTER(S): Name TitlelPosition Department Cindy O'Brien Interim ACM - Administrative Services Oscar Martinez Assistant City Manager - Public Works Constance Sanchez Interim Director of Financial Services Eddie Houlihan Assistant Budget Director REQUIRED COUNCIL ACTION: No formal action is required at this time. First and second readings on budget adoption are scheduled for July l4th and July 28th respectively. t 4,47_ Eddie Houlihan Assistant Budget Director Power Point Presentation X Exhibits ❑ -461- In terna 1 S ervi eF u nds • • • Stores Fund -'es and supplies purchasing and Main services Municipal abli she provide d to m printin a g a messenge enance Service to City Depa nform • • r sere Fund - e rtm ents .' Systen a ion processing services citywide through wireless data, voi Engineering Services Fund - provides c departments. Liability and Employee Benefits Fund st s intaiin an inventory of co t, a reasonable price, an ces organizations. ablished to provide fleet mmon d also Fund — originally establ rther to city departments and now ie automation of processes an ce and video communications. • • • • • to di and she y used materials contains the uilding maintenance b d to provide data supp ie orts departments wired and provision o ompi e ee gineering Group Health Benefits — accoun offered by the City. ts for the General Liability — accounts for paymen em ts of ployee hea liability cl ents of wo premiums for insurance coverage. Workers' Compensation — accounts for p claims. Administration— accounts for admmist he various programs. )ther Employee, Benefits — a cco unts tor aym services to lth insuran aims and v City ce a plans rious rkers ative costs associated dental, vision, life, & comp witl disa ensation eratin i op_ bility plans. 3 S ummary of Fun d Bala nee s for In terns S erviee Fu nd rojected Fund Balance @ 8/1/2009 Budget Revenues Budget Expenditures Projected Balance 7/31/20 {und @ 0 Sto Ma es atenance Services''' Municipal Information' Systems (MIS) Engineering Services Benefits - Health Benefits - Liability Benefits — Workers' Co Benefits - Admin Other Employee Benefits Total p $ '' 102,670 2,871 693,555 17,679,750* !' 14,257,294 !' 11',944,843 181,018 !' 0 $ 47,545,290''' * Includes GASB No. 45 adjustment o $5,166,868 require $ 4,263,308 17,351,585 4,583,977 27,52 3,01 0,823 0,864 1,099,151 4,092,191 $ 88,258,329 ',', $ 4,350,340 19,340,508 17,153,385 5;168,42 7 11,451,648 6,895,660 1,188,545 2,735,600 97,742,457 15,638 3,227,565 15 9, 8. 01,071 09,105 42,229 57,293 060,047 91,624 $ 38 061,163 e recorded at July 31, 2 009. 4 Internal Service Funds Full Time Equivalents Stores Maintenance Ser.%•ices MIS Engineering Services Combined Liability & Employee Benefits Total Budget 09 Budget 10 20 21 87 87 105 105 62 64 15 15 289 292 n5% n 7% ❑ 36% ❑ 30% ® Stores ❑ Maintenance Services ❑ MIS ■ Engineering o Combined LiablEmp Functional Analyst moved from Finance to the Stores Fund since the position performs an array of duties for the various departments throughout the Cit such as system interfaces, inventory program maintenance, and training. Three new FTE's added in Engineering Services to help assist with Bond 2008 with one transfer out to General Fund. 5 Stores Fund Major Revenues Budget 09 Budget 10 Warehouse Sales 2,874,922 2,898,943 Printing Sales 125,903 150,866 Postage Sales 256,966 269,086 Copy Sales 114,181 1 54,923 Purch & Msg Svcs 739,992 735,816 Other 3,000 53,675 Total 4,114,964 4,263,308 6 4% 176 ® Warehouse Sales El Printing Sales Postage Sales 69^% ■ Copy Sales ® Purch & Msg Svcs Warehouse Services comprise 68% of Stores Fund activity. Warehouse Sales are sales made from warehouse inventor}• (i.e. hand tools, bags of concrete, safety equipment, paper goods, etc.). Printing Sales are charges for jobs done by the City Hall Print Shop. Postage Sales is postage that individual departments use. Copy Sales are charges for use of City Hall copiers. 6 Stores Fund Expenditures by Function Budget 09 Budget 10 Personnel 943,961 1,011,575 Operating 3,072.507 3,155,573 Allocations 177.156 183.192 Total 4.193.624 4,350,340 4w a Personnel ❑ Operating ❑ Allocations Personnel cost increase is largeb due to transfer of Functional Anal st which Ns ill be allocated to the using departments. Increase in operating cost includes the purchase of an 880K color copier projected to save 8110K a year by bringing approximateb 80% of the City's outside color printing in- house. Maintenance Services Fund Major Revenues Fleet Management Building Maintenance Transfer for Capital Transfer for Capital Replacement Other Total Budget 09 Budget 10 13,377,427 13,497,908 2,705,948 2,794,580 2,576,700 2,202,336 765.486 1.106356 135.058 283,203 19.560.619 19,884,783 14 °k 6% 1% Revenues derived from allocations, fuel sales and transfer of funds from other departments for purchase and replacement of capital outlay. Utilities, General Fund, and Development Services are contributing to the Capital Replacement Program. o Fleet ❑ Building ❑ Transfer for Capital Outlay • Transfer for Capital Replacement • Other 8 Maintenance Services Fund Expenditures by Function Personnel Operating Allocations Capital Total Budget 09 Budget 10 4,205,693 4,393,927 12,500,870 1 1,903,225 780,842 841,020 2,701,700 2,202,336 20,189,105 19,340,508 4% 11% 62% 23% ▪ Personnel ❑ Operating ❑ Allocations • Capital Continuation of annual $200,000 put into reserve for vehicle, equipment and building maintenance needs. S2,202,336 budgeted for vehicle /equipment purchases. 9 Municipal Information Systems Fund Major Revenues Budget 09 Budget 10 Charges to General Fund 7,050,576 9,291,144 Charges to Gas Fund 1,325,184 1,307,616 Charges to Wastewater 1,481,844 1,538,028 Fund Charges to Water Fund 2,274,780 2,325,540 Charges to Storm Water 708,348 831,876 Fund Other /Transfer from 2,426,906 2,057,381 Total 15267,638 17351,585 13% 5% 12% 53%, ® Chgs to General Fund o Chgs to Gas Fund ❑ Chgs to Wastewater Fund • Chgs to Water Find o Charges to Stormwater 9% / • Other 8% Increased charges due largely to S1.9M fund balance draw down in FY09. Water and Storm Water increase is also partially due to increases in the number and type of GIS licenses needed by the respective departments. Other revenues include 5120,842 rebate from the General Liability Fund and S131,219 from the Workers' Compensation Fund. 10 Municipal Information Systems Fund Expenditures by Function Budget 09 Budget 10 Personnel 7,1 57,565 7,182.434 Operating 6,760,933 9,226,795 Allocations 3,019,040 534,156 Capital 225,000 210,000 It, 54% Total 17.162.538 17.153.385 3 °° 1 °o 42 °. Personnel ❑ Operating O Allocations ■ Capital Increased personnel cost due to IT Career Ladder advancements and Cost of Living increases authorized throughout FY09. C.C. Wireless Corporation expenditures have been recorded in the MIS Fund. Capital expenditures includes network improvements and a vehicle. 11 Engineering Fund Major Revenues CIP Projects Allocations to other Funds Other Total Budget 09 Budget 10 1,825,019 2,728,307 883,503 716,292 1,177,866 1,139,378 3,886,388 4,583,977 59c CIP Projects ❑ Allocations ❑ Other Significant increase in CIP Projects revenue due in part to additional hires and to Bond 2008 passage. 12 Engineering Fund Expenditures by Function Budget 09 Budget 10 Personnel 3.828,458 4,106.739 Operating 420,611 497,736 Allocations 535,788 563.952 Total 4.784.857 5.168.427 11% • 79% Personnel ❑ Operating ❑ Allocations Pursuant to Council Directives, some outside engineering contracts were converted to in -house staff. Greater emphasis on succession planning with dev eloping professional engineers in- house. 13 Liabi ty & Employ GASB 45 ee B e St efi m is ate Gro u d Lia p bi Health ty Fu nd Insurance Estimated GASB 45 Net Plan FY09 Fund OPEB Obligation Balance at 07/31/10 Estimated FY 10 Fund Balance Group Health: Commitments - Citicare $9,691,719 $2,587,493 $12,279,212 Commitments - Fire $4,136,955 $1,121,234'' $5,258,189 Commitments - Public Safety $3,723,834 $1,478,022 $5,201,856 Unreserved - Citicare $4,381,394 N/A $1,793,901 Unreserved - Fire ($4,178,832) N/A ($5,300,066) Unreserved — Public Safety', ($861,673) N/A ($2,339,695) Unreserved Closing $786,353 N/A ($1,151,168) Balance $17,679,750 $15,742,229 GASB 45 Unreserve Appropriable Obligat ton ,is prolgcte d balancesfo Fund Ba r Citicare ances. 0 total S5186,749!', ±ire & Public Safety are based on 14 Liability & Employee Benefits Group Health Revenues Budget 09 Budget 10 City Contributions 14,807,233 16,288,623 Employee Contributions 5,974,122 6.179.316 Retiree Contributions 2.996.271 3,415,372 Other 1.561.811 1.637.512 Total 25.339.437 27.520.823 12% N.4 6% Premiums are based on actuarial forecasts and ability of fund to offset projected increases. 60% Recommending premium increases of 5% for Citicare, 30% for Fire, Ns Rh no increase for Public Safety in FY10. City Contributions ❑ Employee Contributions Retiree Contributions • Other 15 Liability & Employee Benefits Group Health Expenditures by Function Budget 09 Budget 10 Third Party Admin. 1,318,908 1,263,125 Health & Dental -All 23,814,119 23,756,474 Plans Disability Ins Prem. 147,651 0 Stop Loss Ins. 1,459,508 1,683,260 ($2M lifetime max) Other /Operating 430,317 2,755,485 Transfer Out Total per budget 27,170,503 29,458,344 document GASB No. 45 Adj. 5,166,868 5,186,749 TOTAL 32,337,371 34,645,093 6% 4% .� r 81% Employee Health Plans include Citicare, Fire, Police and Alternate Choice. Dental, Vision, Disability, & Life Ins plans moved to Other Employee Benefits fund in FY 10. FY10 expenditures increase due to the Operating Transfer Out to the Other Employee Benefits Fund. Health & Dental 0 3rd Party Adnin ❑ Stop Lass Ins. ■ Other 16 Liability & Employee Benefits General Liability Revenues Budget 09 Budget 10 Interfund 5,502,436 6,314,061 Contributions Other 259,824 137,586 Total 5362.260 6.45 L647 2% 980/0 ❑ Interfund Contributions 0 Other Revenues for the General Liability Fund are derived from Interfund Contributions to cover general liability related expenses including liability claims, litigation, insurance policy premiums, unemployment compensation, and occupational health. 17 Liability & Employee Benefits General Liability Expenditures by Function Budget 09 Budget 10 Self Ins 2,659,766 3,124,268 Claims /Litigation Insurance Policy 2,539,942 2,988,780 Premiums Unemployment Comp 130,000 140,000 Occupational 195,000 198,600 Health /Other Operating Trfr. Out 0 5,000,000 Total 5.524,708 11,451,648 ® Self Ins/Litigation 0 Ins Policy Premiums ❑ Unemploymt Comp • Occupational Health ® Operating Trfr. Out Self Insurance claims expenses are projected by an actuarial analysis. Insurance policy premiums have increased due to an increased number of properties and a general industry trend. Operating Transfer Out to all contributing funds intended to draw down the fund balance closer to the amount required by the Fund Balance Mgt. Policy — General Liability Fund. 18 Liability & Employee Benefits Workers' Compensation Revenues Budget 09 Budget 10 Interfund Contributions 1,706,606 2,884,796 Other 234.562 126,068 Total 1,941,168 3,010,864 4% 96% Revenues are derived from interfund contributions to cover workers' compensation related expenses including claims expenses, Third Party Administrator fees, actuarial studies, safety & wellness programs, and related expenses. ❑ Interfund Contributions ❑ Other 19 Liability & Employee Benefits Worker' Compensation Benefits Expenditures by Function Budget 09 Budget 10 Excess Workers' 150,000 165,000 Comp Third Party 373,428 320,520 Administrator Workers' Comp Self 2.229.013 2.461.344 Ins Operating Trfr. Out 0 3.884.796 Other 60,000 64.000 Total 2,812,441 6,895,660 56% 36% O Excess Workers' Comp 0 Third Party Administrator 0 Workers' Comp Self Ins • Operating Trfr. Out 0 Other Risk Management's staff's continuing focus on employee safety and better management through continuous review of balanced scorecard safety related metrics have contributed to improved performance. Six out of nine months this year have seen decreases in workers' compensation claims expenses compared to last year. City -wide workers' compensation rebate recommended for FY10 totaling S3,884,796 million. 20 m Em ployee Benefits Admini Revenues stra Budget 09 1 137,028 0 Revenues are derived for the Liability and 1,137,028 Budget 10 1,097,646 1,505 1,099,151 retributions Fund. from inter fund co Employee Benefits '.'. ❑ Interfund Contributions to cove 100% administrative expenditures 21 Liability & Employee Benefits Administration Expenditures by Function Personnel Materials & Supplies Professional Sern•ices Allocations Total Budget 09 Budget 10 924,990 876,492 139,000 139,775 75,804 77,418 94,049 94,860 1.233.843 1.188.545 12°o 8% 73% o Personnel ❑ Materials & Supplies ❑ Professional Svcs ■ Allocations We are not recommending any significant increases or decreases in administrative expenses for the Liability & Employee Benefits Administration Fund. 22 Liability & Employee Benefits Other Insurance Revenues Budget 09 Budget 10 Employee & Retiree Contrib. — Life, Dental & Vision Interfund Contrib. — Life, Disability & Other Other /Transfer from Group Health Total 0 757,962 0 578.244 0 2,755,985 0 4,092,191 la Employee & Retiree 14% Interfund Contrib. ❑ Other /Transfr. from Group Health Employee & Retiree Contributions for Life & Dental increasing by S43,174 due to higher participation, and Interfund Contributions for Life, Disability & Other are increasing by S69,838 due to premium increases in FY10. The portion of the Fund Balance previously in the Employee Benefits Group Health Fund that is attributed to Other Benefits related revenue has been transferred in the amount of 52,755,985. 23 Liability & Employee Benefits Other Insurance Expenditures by Function Prof. Sry. & Actuarial Study Dental Claims & TPA Cafeteria Plan Disability & Life Premiums Wellness Program Other Reserve Appr. Total Budget 09 Budget 10 0 220,000 0 657,000 0 20,000 0 243,500 0 85,100 0 10,000 0 1,500,000 0 2,735,600 7% 1% 52% ® Prof Sry & Actuarial o Dental Oakes & TPA Fees ❑ Cafeteria Plan ■ Disability & Life Premkrns ® Wellness Program R Other Dental, Vision, Disability, and Life Insurance Plans moved in from the Group Health Fund in FY10 Dental Claims & Third Party Administration expenditures are expected to decrease by S63,939 within the Employee Benefits Other Insurance Fund in FY10. 24 Spec resou tha A ial Revenue F n �rces allocated n expendable Specia Revenu long as governme its specific purpo t ds a o spe re 1 us trusts or eFundc ed to acco oses pi tal 1 c p urp maj 0 ontin tal resou e ca es a n al ant for other • p rod ec existenc located t is ). e 0 as 25 Hotel Occupancy T occupancy taxes. Reinvestment one #2 development of and w is utilized for Packery Sp ecial Revenu e F and s ax Fund_- a - North' ithin the Channel Corpus created • Christi Busin under State 1 Seawall Improv downtown seaw Arena Facility ions of a opera ccounts for revenues and xpen Padre Island Developmei boundaries of the Tax In development and improvement ent Corporation — ditures of • he hoteUmotel orporation tormeu crement ess and Job D w to provide ement Fund— evelopm funding 1 /8i" of cen sa oter approved les tax collecte +und — 1 /8th cent sales tax collected to multi - purpose municipal arena. Business baseball and Job stadiu M, Development Fund —1 /8t" cF develop, new and e initiatives. affordable housing Development associated w Visitors F Center, C Services Fund — established th the One -Stop Center. o account for Financing Zone projects within th public non - capital imp d to #2 (TIF). It' e TIF. profit corporation rovement programs.' fund improvements to • he inc co istruct on, maintenance an nt sales panded business o specifically tax collected enterprises, a to fund construction of d contribute toward identify revenue acllltles onvention unU— records revenue Center and other to Committee Corpus Christi A mandated plan and re rol and Prevent Local Emergency Planning Nueces County, the Port of implementing the federally To -Know Act. Corpus Christi Crime Con1 created 'under State law an and expend American Agreement f expenaltures relates to, the urist- related activities. LEPC)— established by uthority,,and the C Interloca ity forth on tures Bank quired training under Dist to nrouide funding for pub ict — a is pu safety e purpose ,o the Co bhc non - profit co programs.' between mmunity rporation Right; 26 Special Revenue Funds Full Time Equivalents Visitors' Facilities Budget 09 Budget 10 10 10 Development 76 63 Services Redlight Photo 0 2 Enforce. Crime Control 65.6 65.6 LEPC 1 1 Total 1 52.6 • 47% .1% : :7/. • a1% o Visitors' ❑ Developnent Services Redlight Photo Enforce. 447. ■ trine Control 141.6 ®LEPC Redlight Photo Enforcement includes one Police Officer and a Management Assistant transferred from General Fund Police budget. Development Services: 2 positions deleted and 11 frozen 27 Special Revenue Funds Major Revenues Taxes Fees/Permits Convention Ctr /Arena Other Transfer from Other Fds Total Budget 09 35,609,471 4,777,336 6.200.625 1,089,632 5,878,311 Budget 10 35,859,321 3,374,070 5.416.238 1,804,193 8,310,653 53,555,375 54,764,475 10% 15% 6% Revenues listed are inclusive of all Special Revenue Funds: Hotel Occupancy Tax Fund Reinvestment Zone #2 Seals all Improvement Fund Arena Facility Fund Business & Job Development Fund Development Services Fund Visitors' Facilities Fund Local Emergency Planning Committee Fund Corpus Christi Crime Control & Pres'ention District Fund o Taxes ❑ Fees/Permits ❑ Convention Center/Arena 66% ■ firer o Transfer from Other Fds 28 Special Revenue Funds Expenditures by Function Hotel Occupancy Redlight Photo Enforce. RIZ#2 Seawall Arena Business & Job Dev Development Svcs Visitors' Facility LEPC Crime Control Total Budget 09 Budget 10 11,471,136 10,553,425 0 1,105,562 1,170,211 2,676,244 4,267,481 3,3 12,481 6,287,208 5,394,428 6,745,631 6,299,223 6,549,668 6,565,816 10,271,186 10,675,809 95,195 93,846 5,220,772 5,409,158 52.078,488 52,085,992 to% El Hotel Occupancy D Redlight Photo ❑ RIZ#2 ■ ■ Seawall ri El Arena s% irk B&JD El Development Srvs D Visitors' 0 LEPC 0 Crime Control Crime Control expenditures continue to support fifty police officers, the purchase of five replacement police package sedans, along with funding the Citizens Advisory Council, Pawn Shop Detail, Graffiti Eradication Program, Juvenile Assessment Center, and Juvenile Cit Marshals. 29 Occupancy ax Major Revenues Hotel Othei Total Occupancy Tax Budg' 09 1 0,425,408 12,500 Budget 10,35 0 0,010' 5.000 0,4 7,908 0,365 010', Hotel Occupancy Tax FY 10 Hotel Occupancy Tax revenues estimates. FY09 revenues are antwips $300K. were budgete ted to fall sho d at a 1% increase over FY rt of budge ed' amoun 09 by $150K 30 Hotel Occupancy Tax Expenditures by Function Convention Center Convention Promotion Beach Cleaning Debt Service Multicultural /Other Total Budget 09 Budget 10 3,850,000 3,200,000 3.088.060 3,150,000 1,055,520 1,081,248 2,489,296 2,492,473 988,260 629,704 11,471,136 10,553,425 5 "C 307.. D Beach Clearing • Debt Service B Multicultural/Other Transfer to Visitors' Fund decreased by S650K. Convention & Visitors Bureau payment includes potential FY 10 incentive and remaining FY 09 incentive. Decrease in MulticulturaUOther expenses due to funding for various arts groups being reduced by S375K. 31 Development Services Major Revenues Fees and Permits Other Transfer from Other Funds Total Budget 09 Budget 10 4,777,336 3,295,070 264,645 790,418 1,026,060 2,380,320 6,068,041 6,465,808 17 79% ® Fees and Permits ❑ Other ❑ Transfer Significant decline (S1,087K) in permits — Building, plumbing, electrical & mechanical No new fees or fee increases are proposed for FY10. Transfer from General Fund has been increased by S1.35M. 32 Development Services Expenditures by Function Personnel Operating Allocations Capital Total Budget 09 Budget 10 3,971,888 3,840,129 1,351,199 1,595,539 1,051,581 1.130,148 175.000 0 6,549,668 6,565,816 0 24'..\ • Personnel ❑ Operating 59% Allocations • Capital Two positions have been deleted for FY10: 1 Inspector and 1 Plans Examiner II; Eleven positions have been frozen: 2 Administrative Assistants, 1 Executive Assistant, 1 Customer Service Rep, 1 Project Manager, 1 Land Use Data System Clerk II, 1 Planning Technician, 1 Asst. Building Official and 3 Inspectors. A 2% salary savings has been programmed into this budget. Increase in Allocations reflects lease /purchase pay ments for Frost Building Chiller replacement. Continue participation in Capital Replacement Program, S26,000 for FY10. 33 Visitors' Facilities Major Revenues Budget 09 Budget 10 Arena 4,130,930 3,480,224 Convention Center 2,069,695 1,936,014 Reimb fr HOT Fd 3,850,000 3,200,000 Transfer fr Arena Fd 776,428 1.790,367 Other 251,896 273,139 Total 11,078,949 10,679,744 17% 3% • Arena 32% O Convention Center 30% 18% ❑ Reimb from HOT Fund • Transfer from Arena Fund ® Other Reduced Arena revenues have been offset by reduced expenditures. The reimbursement from the Hotel Occupancy Tax Fund is budgeted to decrease by S650,000 in FY10. The "Transfer from the Arena Fund" represents a transfer from the Arena Facility (sales tax) special revenue fund to cover the costs for insurance, management fees to SMG, and MIS costs for the Arena. In addition the Proposed FY 10 budget includes S500K for Arena maintenance /improvements and S500K for Arena marketing. 34 Visitors' Facilities Expenditures by Function Budget 09 Budget 10 Arena 4,987,136 4,357,837 Arena Main. & Mkt 0 1,000,000 Convention Center 4,372,932 4,150,349 Transfer to Gen Fd 82,547 170.112 Other 828,571 997,511 Total 10.271.186 10.675.809 90 ❑ Arena ❑ Transfer to General Fund Included in the expenditures for the Arena and Convention Center are the City's costs for insurance on the facilities, management fees to SMG, and MIS costs. Transfer to the General Fund represent an administrative service charge and is budgeted to increase in FY 10 based on a "Full Cost Plan" prepared by 3rd party. Included in "Other" for FY 10 are expenditures for the Bayfront Arts & Science Park, Water Garden, Cultural facilities maintenance and uncollectible accounts. 35 36'''' D eb t s ery ce 0 b ligat 0 s Type of Obliaa ion Tax- Supported Debt' General Obligation Bonds Certificates of Obli ation Tax Increment Financing Zone # State Infrastructure Bank Note Tax Notes Revenue Bonds Airport System Sales Tax' Utility System Other BureaL To Obligations of Reclamation Purchase Contract LNRA al Proje cte d $2311,525,00 13 280,000 250,000 6,260,000' $ 19,620,000 96,815,000' 527,280,000' $ 64,459,043' 8'488 392 Outstanding Principal @ 7.31.09 $ $ 339,895,00 643,715,000'' $ 162,947,435''' $1,146,557,435 Debt Service Funds Major Revenues Ad Valorem Taxes Agency Contributions Interest Transfer from Other Funds Total Budget 09 25.903,038 803,340 534,134 67,738,642 Budget 10 26,853.252 633,903 327,317 64,461.338 94,979,154 92,275,810 55% \ -1% 1% 43% A complete Capital Improvement Plan based on the financial capacity of the Debt Seri ice Funds should be presented to the City Council in Jul. ® Ad Valorem Taxes o Agency Contributions ❑ Interest ❑ Transfers from Other 38 Debt Service Funds Expenditures by Function Seawall Improvement Arena Facility Baseball Stadium GO Debt Service Marina Airport Water System Stormwater System Wastewater System Gas System Airport 2000A Airport 2000B Total Budget 09 Budget 10 3,248,481 3,540,780 2,289,850 41,397,513 333,306 198,181 21,760,986 8,426,841 16,668,634 572,575 1,067,841 519,450 3,297,481 3,589,061 2.286.075 35.656.327 332.856 204,450 21,732,695 8,818,421 16,467,460 560,677 1,067,841 519,450 100,024,439 94,532,797 O Seawall ❑ Baseball Stadium ® Marina ® Water System ❑ Wastewater System ❑ Airport 2000A D Arena GO Debt ❑ Airport GO ❑ Stormwater System ❑ Gas System ❑ Airport 2000B 39 Outstanding Principal Balances by Debt Type (excludes Capital Leases) N $700 c $600 2 $500 $400 $300 $200 $100 $0 • 7.31.2004 7.31.2005 7.31.2006 7.31.2007 7.31.2008 7.31.2009 Tax - Supported Debt Revenue Bonds Other Obligations P lease note the apparent correlation between the tax - supported debt and the revenue bonds, as Revenue Bonds are needed to support the street - related G.O. issues. Revenue Bonds outstanding are higher than tax - supported debt given the various Utility -only needs primarily o utlined in the annual Capital Im provement P Ian (CIP ). Revenue bond requirements in subsequent years are expected to be significant ($75M - $ 90M) per annum for the next 5 -6 years. 40 Outstanding Principal Balances in Total (excludes Capital Leases) $1,400 - c $1,200 5 $1,000 - $800 $600 $400 $200 $0 7.31.2004 7.31.2005 7.31.2006 7.31.2007 7.31.2008 7.31.2009 The above is a composite of all debt types shown on the previous slide. The slight dip experienced in 2008 was due mostly to the payoff of o Ider G.O., Tax Notes, and Revenue Bonds; and the absence of any new Revenue Bond and /o r G.O. issues. The continuation of the upward trend reflects the first traunch of the voter - approved G.O. Debt, the first year of street - related supporting Revenue Bonds, and the utility-only CIP Revenue Bond requirements. 41 Debt Service by Type (excludes Capital Leases) 0 c 0 5 $50 $40 $30 $20 $10 $0 7.31.2004 7.31.2005 7.31.2006 7.31.2007 7.31.2008 7.31.2009 07.31.2010 Seaw all Arena Baseball General Fund Utility Airport Marina Packery Channel Note: Debt Service requirements have risen significantly since 2004. The spread betw een Utility and General Fund Debt Service is expected to grow moving forw and given the utility needs associated w ith Bond 2008 street w ork and the utility -only component of the annual capital improvement plan. 42 to c 0 5 $120 $100 Total Debt Service (excludes Capital Leases) $80 - $60 $40 $20 $0 7.31.2004 7.31.2005 7.31.2006 7.31.2007 7.31.2008 7.31.2009 07.31.2010 Note: The sharp run up in FY 2009 was due mostly to a rapid amortization of Tax Notes approximating $ EM - much of which was pulled from one -time Debt Service Fund balance. Again, the dip in FY 2013 is transitory given continued borrowing and delayed amortization schedules -the general upward trend is expected to continue. 43 u uly'1 ul 2 Y' 4- Pub 1 le Hearing St Reading nd Reading & A d option 44 Questions & Comments 45 -554-