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Agenda Packet City Council - 03/09/2010
1111101111•111/ 111111111111111. \11.0014.001111.010 • Mr: ••4.7V-Vv", r arch 9A, 2010 .„, 11:45 A.M. - Proclamation declaring Wednesday, March 10, 2010, as "Registered Dietitian Day" Proclamation declaring Thursday, March 11, 2010, as the "67th Anniversary Banquet Celebration of the Wesley Community Center" Proclamation declaring the month of March, 2010 as "Women's History Month" Proclamation declaring the month of March, 2010 as "Red Cross Month" "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 MARCH 9, 2010 12:00 P.M. PUBLIC NOTICE - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. Members of the audience will be provided an opportunity to address the Council at approximately 4:00 p.m., or 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 ingles es limitado, habit un interprete ingles- espanol en todas las juntas del Concilio para ayudarle. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's 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 Pastor Kenneth Mutchler, Immanuel Fellowship. C. Pledge of Allegiance to the Flag of the United States. D. City Secretary Armando Chapa to call the roll of the required Charter Officers. Mayor Joe Adame Mayor Pro Tem Chris N. Adler Council Members: Brent Chesney City Manager Angel R. Escobar Larry Elizondo, Sr. Interim City Attorney Lisa Aguilar Kevin Kieschnick City Secretary Armando Chapa Priscilla Leal John Marez Nelda Martinez Mark Scott Agenda Regular Council Meeting March 9, 2010 Page 2 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) E. MINUTES: 1. Approval of Regular Meeting of February 23, 2010. (Attachment #1) F. BOARDS & COMMITTEE APPOINTMENTS: (Attachment # 2) 2. Committee for Persons with Disabilities * Museum of Science and History 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. CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been furnished with background and support material on each item, and/or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately unless requested by a Council Member or a citizen, in which event the item or items will immediately be withdrawn for individual consideration in its normal sequence after the items not requiring separate discussion have been acted upon. The remaining items will be adopted by one vote. CONSENT MOTIONS, RESOLUTIONS, ORDINANCES AND ORDINANCES FROM PREVIOUS MEETINGS: (At this point the Council will vote on all motions, resolutions and ordinances not removed for individual consideration.) 3. Ordinance authorizing the City Manager, or his designee, to execute a three -year contract and lease agreement with Susan Shelby Torrance (Pro) for tennis operations at the Al Kruse Tennis Center in consideration of Pro paying the city 5% of Pro and lesson revenue, and collecting and forwarding city revenue Agenda Regular Council Meeting March 9, 2010 Page 3 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) to city in return for Pro's exclusive use of tennis center, and city paying Pro $3,166 per month for Pro operating tennis center. (Attachment # 3) 4. Resolution authorizing the City Manager, or his designee, to execute an Interlocal Cooperation Agreement, in the amount of $10,000, with the University of Texas Marine Science Institute (UTMSI), for UTMSI to provide monitoring of the Gulf of Mexico beaches from the North Jetty of Packery Channel to the City of Corpus Christi city limits for turtles during sea turtle nesting season, March 15 to September 30. (Attachment # 4) 5. a. Resolution authorizing the City Manager or his designee to accept a grant in the amount of $15,000 from the Texas Department of State Health Services for funding eligible under the Governor's Advisory Council on Physical Fitness (GACPF) and to execute all related documents. (Attachment # 5) b. Ordinance appropriating $15,000 from the Texas Department of State Health Services fund in the No. 1071 Community Enrichment Fund, to be used for encouraging, promoting, and enhancing healthy living through organized sports, events, diet and everyday activity all with a strong emphasis on using our natural resources. (Attachment # 5) 6. , a. Resolution authorizing the City Manager or his designee to execute an agreement with Dr. William Burgin, Jr., to serve as the Local Health Authority for the Public Health District. (Attachment # 6) b. Resolution authorizing the City Manager or his designee to execute an agreement with Dr. Colette Simon to serve as the Alternate Local Health Authority for the Public Health District. (Attachment # 6) 7. Motion authorizing the City Manager, or his designee, to execute a construction contract with Holloman Corporation of Converse, Texas in the amount of $246,906 for Mary Rhodes Pipeline Cathodic Protection 2010 for the Total Base Bid (Water Fund Capital Outlay). (Attachment # 7) Agenda Regular Council Meeting March 9, 2010 Page 4 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 8. Motion authorizing the City Manager, or his designee, to execute a Real Estate Sales Contract with Corpus Christi Independent School District in the amount of $72,600 plus $1,300 in closing costs for the purchase of fee simple property rights to 2.42 acres of vacant land owned by CCISD on Paul Jones Avenue, north of and adjacent to the City's South Guth Ball Field complex for recreational and other public purposes in connection with the South Guth Ball Field Relocation Project. (Attachment # 8) 9. Ordinance amending Section 33 -16, Code of Ordinances, City of Corpus Christi, to allow parking on the Seawall Parking Lot on Windward Drive when any portion of beach seaward of the concrete portion of the Padre Island Seawall is closed to vehicular traffic; providing for penalties; providing for publication. (Attachment # 9) 10. Second Reading Ordinance - Amending the Comprehensive Plan of the City of Corpus Christi, by amending the Corpus Christi Urban Transportation Plan (as adopted by Ordinance No. 025251), and thereafter amended by Ordinances 026278 and 026402) and the Corpus Christi Future Land Use Plan (as adopted by Ordinance 026278) for the City and its extraterritorial jurisdiction; establishing a Unified Future Land Use and Transportation Plan for coordination of land use zoning subdivision development and Capital Improvements consistent with the public interest; amending related elements of the Comprehensive Plan of the city; and providing for publication. (First Reading - 02/23/10) (Attachment # 10) 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. 11. Executive Session under Texas Government Code Section 551.071 regarding Pablo Vela vs. City of Corpus Christi, Texas, Agenda Regular Council Meeting March 9, 2010 Page 5 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Cause No. 07- 60564 -3, in the County Court at Law Number 3, Nueces County, Texas, with possible discussion and action in open session. 12. Executive Session under Texas Government Code Section 551.071 for consultation with its attorney regarding City of Corpus Christi — Proposed TPDES Permit No. WQ0010401004, EPA ID No. TX0047058 (CN600131858; RN101610327), with possible discussion and action in open session. 13. Executive Session under Texas Government Code Section 551.074 regarding an appeal by Michael Rodriguez, concerning a decision by the Civil Service Board, with possible discussion and action related thereto in open session. J. PUBLIC HEARINGS: WASTEWATER ACREAGE FEE EXEMPTION: 14. Public hearing to consider and Ordinance exempting Margaret Kelly Land, Tract 3, Lot 1 subdivision from the payment of wastewater lot or acreage fees under Section V.B.6.I) of the Platting Ordinance; requiring the owner /developer to comply with the specified conditions. (Attachment # 14) COTTAGE HOUSING DISTRICT: 15. Public hearing to consider and First Reading Ordinance amending the Corpus Christi Zoning Ordinance by adding to Section 4 -1, the "10" Zoning District, which was not listed when district was adopted, and by adding the new "CH" Zoning District; by adding a new Article 6C Title "CH" Cottage Housing District; by adding "Cottage Housing Development" as a permitted use to Sections 6B -2, 7 -2, 8 -2, 8 -A2, 9 -2, 10 -2, 11 -2, 12 -2, 12A -2, 13 -2, 14 -2, 14A -2 and 16 -2; by altering the form of the Article 24 chart; and by adding a new district to Section 24- 1; relating to the use, regulations, and review standards for a Cottage Housing District; providing for increased density and low- impact development on smaller lots within the City limits; amending conflicting provisions of the City's comprehensive plan; repealing conflicting ordinances; providing for penalties; providing for publication; and providing for an effective date. (POSTPONED UNTIL MARCH 23, 2010) (Attachment #15) Agenda Regular Council Meeting March 9, 2010 Page 6 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) K. REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES: 16. 17. a. Resolution ratifying the acceptance of a funding award in the amount of $1,581,737 from the Texas Department of Housing and Community Affairs for the Weatherization Assistance Program effective September 1, 2009 and authorizing the City Manager or his designee to execute all related documents. (Attachment # 16) b. Ordinance appropriating $1,581,737 in the No. 1059 Grant Fund for the Weatherization Assistance Program (WAP). (Attachment # 16) a. Resolution approving the Corpus Christi Business and Job Development Corporation's expenditure of $1,100,000 of the Corporation's Seawall Funds for the Salt Flats Levee System — Phase 1 project; authorizing amendment of the Corporation's budget; and approving a Seawall Project Agreement between the Corporation and the City of Corpus Christi for the Salt Flats Levee System —Phase 1 Project. (Attachment # 17) b. Ordinance appropriating $1,100,000 from Corpus Christi Business and Job Development Corporation in the No. 3271 Seawall Systems CIP Fund for Salt Flats Levee System - Phase 1 Project. (Attachment # 17) c. Motion authorizing the City Manager, or his designee, to execute a Contract for Professional Services with Urban Engineering of Corpus Christi, Texas, in the amount of $303,054 for preliminary design, design, bid . and construction phase services, and additional services for the Salt Flats Levee System — Phase 1 Project for Federal Emergency Management Association (FEMA) recertification. (Attachment # 17) Agenda Regular Council Meeting March 9, 2010 Page 7 18. CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) a. Resolution establishing the City's intention to reimburse itself, in an amount not to exceed $8,000,000, for the prior lawful expenditure of funds from the proceeds of obligations to be issued by the City for authorized purposes relating to the Utility System; authorizing matters incident and related thereto; and providing an effective date. (POSTPONED ON 2/16/10) (Attachment # 18) b. Ordinance advancing $8,000,000 from Fund No. 4050 - Choke Canyon Fund to and appropriating into the No. 4087 Water 2010 TWDB -WIF Loan fund for expenditures related to the planning, design, and permitting of a pipeline and related facilities between the Colorado River and the Mary Rhodes Pipeline pumping facility at Lake Texana; providing for repayment of the $8,000,000 to Fund No. 4050- Choke Canyon Fund from proceeds from the sale of bonds to the Texas Water Development Board. (POSTPONED ON 2/16/10) (Attachment # 18) c. Motion authorizing the City Manager or his designee to execute Amendment No. 4 to the Contract for Professional Services with Freese and Nichols, Inc. of Corpus Christi, Texas, in the amount of $9,676,590, for a total restated fee of $10,990,177 for Mary Rhodes Pipeline Phase 2 for preliminary design, design, bidding and construction phase services and additional services. (POSTPONED ON 2/16/10) (Attachment # 18) 19. Ordinance authorizing the issuance of $8,000,000 "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010 "; providing the terms, conditions, and specifications for such bonds, including the approval of an application to the Texas Water Development Board; making provisions for the payment and security thereof on a parity with certain currently outstanding obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; authorizing the execution of a paying agent/registrar agreement and an escrow agreement; complying with the requirements of the depository trust company; enacting other provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. (Attachment # 19) Agenda Regular Council Meeting March 9, 2010 Page 8 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. 20. Presentation by Nueces County Commissioner Betty Jean Longoria: (Attachment # 20) a. Update on the Coastal Bend State Veterans' Cemetery Corpus Christi Project b. Census 2010 Update M. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 4:00 P.M., OR AT THE END OF THE COUNCIL MEETING, WHICHEVER IS EARLIER. PLEASE LIMIT PRESENTATIONS TO THREE MINUTES. IF YOU PLAN TO ADDRESS THE COUNCIL DURING THIS TIME PERIOD, PLEASE SIGN THE FORM AT THE REAR OF THE COUNCIL CHAMBER, GIVING YOUR NAME, ADDRESS AND TOPIC. (A recording is made of the meeting; therefore, please speak into the microphone located at the podium and state your name and address. If you have a petition or other information pertaining to your subject, please present it to the City Secretary.) PLEASE BE ADVISED THAT THE OPEN MEETINGS ACT PROHIBITS THE CITY COUNCIL FROM RESPONDING AND DISCUSSING YOUR COMMENTS AT LENGTH. THE LAW ONLY AUTHORIZES THEM TO DO THE FOLLOWING: 1. MAKE A STATEMENT OF FACTUAL INFORMATION. 2. RECITE AN EXISTING POLICY IN RESPONSE TO THE INQUIRY. 3. ADVISE THE CITIZEN THAT THIS SUBJECT WILL BE PLACED ON AN AGENDA AT A LATER DATE. PER CITY COUNCIL POLICY, NO COUNCIL MEMBER, STAFF PERSON, OR MEMBERS OF THE AUDIENCE SHALL BERATE, EMBARRASS, ACCUSE, OR SHOW ANY PERSONAL DISRESPECT FOR ANY MEMBER OF THE STAFF, COUNCIL MEMBERS, OR THE PUBLIC AT ANY COUNCIL MEETING. THIS POLICY IS NOT MEANT TO RESTRAIN A CITIZEN'S FIRST AMENDMENT RIGHTS. N. CITY MANAGER'S COMMENTS: (NONE) Agenda Regular Council Meeting March 9, 2010 Page 9 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) O. ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the City's official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at � -3 D p.m., on March 4, 2010. 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 the Friday. Symbols used to highlight action items that implement council goals are on attached sheet. City Council Goals 2009 -2011 Economic Development Strategic Plan Coliseum Plan Development Process Improvement Support Public Safety Garwood Water Plan Develop Street Plan Community Pride Sustainability and Renewable Energy 1 MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting February 23, 2010 - 12:00 p.m. PRESENT Mayor Joe Adame Mayor Pro Tem Chris N. Adler Council Members: Brent Chesney Larry Elizondo, Sr. Kevin Kieschnick Priscilla Leal John Marez Nelda Martinez Mark Scott City Staff: City Manager Angel R. Escobar Interim City Attorney Lisa Aguilar City Secretary Armando Chapa Mayor Adame called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Dr. Cuthbert Machamire with Christus Spohn Health System and the Pledge of Allegiance to the United States flag was led by Council Member Kevin Kieschnick. 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 called for approval of the minutes of the regular Council meeting of February 16, 2010. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * ** Mayor Adame referred to Item 2 and the following board appointments were made: Building Standards Board Shane Torno (Reappointed) Clarissa Beltran (Appointed) Randal Salazar (Appointed) Human Relations Commission Kathleen (Katy) Cooper (Appointed) Community Youth Development (78415) Program Steering Committee Shon Jimenez (Appointed) Leadership Committee for Senior Services Maria Clarissa Lopez (Reappointed) Vicki N. Garza (Reappointed) Cecilia Huerta (Reappointed) Adelfa Martinez (Reappointed) Wesley Sanders (Appointed) Esperanza "Hope" Lopez (Appointed) Caroline Szepessy (Appointed) * * * * * * * * * * ** Mayor Adame called for consideration of the consent agenda (Items 3 - 12). Mr. Abel Alonzo requested that Items 5, 8, and 9 be pulled for individual consideration. Mr. Johnny French requested that Item 12 be pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Council Meeting February 23, 2010 — Page 2 3.a. ORDINANCE NO. 028489 Ordinance appropriating $132,137.59 from the City's property insurance claim, changing the FY 2009 -2010 Operating Budget adopted by Ordinance No. 028252, to increase appropriations by $132,137.59 in the No. 1020 General Fund to pay for Police Department equipment for narcotics interdiction. 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 ". 3.b. MOTION NO. 2010 -039 Motion approving the purchase of equipment for a total amount of $105,619. The equipment will be used for narcotics interdiction. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 4. ORDINANCE NO. 028490 Ordinance authorizing the City Manager or his designee to execute a five -year lease agreement with Texas A &M University Kingsville for installation and operation of an air quality monitoring station and 10 -meter tower at the Holly Road Pumping Station; and providing for publication. 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. MOTION NO. 2010 -040 Motion authorizing the City Manager or his designee to execute a construction contract with J.S. Haren Company of Athens, Tennessee, in the amount of $981,000 for Lift Station Rehabilitation 2009 — Peary Place Lift Station, Clarkwood South Lift Station, Williams Lift Station, Wooldridge Lift Station, Coquina Bay Lift Station and Laguna Shores Lift Station for the Total Base Bid Parts A, B, C, D, E, F and G (Wastewater CIP 2010). The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 7. MOTION NO. 2010 -041 Motion authorizing the City Manager or his designee to execute a construction contract with Leoncitos, Inc. of Corpus Christi, Texas, in the amount of $79,414 for the Ayers Service Center Pre - Engineered Fuel Station Canopy Installation Project for the Total Base Bid (Maintenance Services Fund). The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". Minutes — Regular Council Meeting February 23, 2010 — Page 3 10. ORDINANCE NO. 028492 Ordinance abandoning and vacating a 83;093.75- square foot portion of an existing utility easement out of Parkdale Shopping Center, Block AR, located north of and adjacent to the Goilihar Road public right -of -way; requiring the owner, Parkdale Income Partners, LP, to comply with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Adier, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 11. ORDINANCE NO. 028493 Amending the Code of Ordinance Section 53 -255, Schedule VI, Decrease of State Law Maximum Speed, by revising the speed limit on Park Road 22, from a point 1,000 feet south of Whitecap Boulevard to a point approximately 2,300 feet south of Whitecap Boulevard, from 55 miles per hour to 35 miles per hour, when school speed zone lights are flashing, providing for penalties; and providing for publication. (First Reading — 02/16/10) 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 5 regarding the Costa Tarragona II Development. Abel Alonzo, 1701 Thames, spoke in support of resolution and hopes that more developers will develop this type of apartment project for low income residents. City Manager Escobar provided information on the success of the project. City Secretary Chapa polled the Council for their votes as follows: 5. RESOLUTION NO. 028491 Resolution supporting the proposed Costa Tarragona II development for the award of Low Income Housing Tax Credits by the Texas Department of Housing and Community Affairs. 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 opened discussion on Item 8 regarding the International Westside Pony League Field Improvements. Abel Alonzo, 1701 Thames, stated that he was in strong support of the project. City Secretary Chapa polled the Council for their votes as follows: 8. MOTION NO. 2010 -042 Motion authorizing the City Manager or his designee to execute a Job Order Contract with Barcom Commercial, Inc. of Corpus Christi, Texas in the amount of $82,129.67 for International Westside Pony League Field Improvements. (CDBG Project) The foregoing motion was passed and approved with the following vote: Adame, Adier, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". Mayor Adame opened discussion on Item 9 regarding the Street Overlays Group project. Abel Alonzo, Chairman of the Committee for Persons with Disabilities, thanked City Manager Escobar and the Engineering Department for including ADA compliance in all street overlay projects. Minutes — Regular Council Meeting February 23, 2010 — Page 4 City Manager Escobar stated that the work would include the replacement of driveways and sidewalks and improve drainage concerns in the Tarlton area. City Secretary Chapa polled the Council for their votes as follows: 9. MOTION NO. 2010 -043 Motion authorizing the City Manager or his designee to execute Change Order No. 5 to the construction contract with Bay, Ltd. of Corpus Christi, Texas in the amount of $252,810.98 for a total restated fee of $3,070,115.90 for Street Overlays Group 1 to add sidewalks, driveways and additional curb ramps to improve accessibility and encase an unidentified sanitary force main in cement sand. (BOND ISSUE 2008) 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 opened discussion on Item 12 regarding the Beachfront Management and Construction ordinance. Johnny French, 4417 Carlton Street, requested that Council amend the ordinance prior to second reading to include instructions to the City Manager to immediately seek a permit from the Corps of Engineers to place dredged and fill material in front of the seawall and all of the areas that are part of the Packery Channel project. City Manager Escobar stated that staff is reviewing the permitting issues. Director of Intergovernmental Affairs Rudy Garza spoke regarding discussion with the Corps of Engineering on the replenishment of the beach and seeking FEMA assistance. Council Member Martinez asked questions regarding what the City is going to do if we don't receive FEMA assistance. Assistant City Attorney Jay Reining stated that staff is exploring several alternative sources of funding. Council Member Martinez requested that staff provide a memo on the communications with the Corps of Engineers to the Council and Mr. French. Council Member Kieschnick spoke regarding erosion caused by the clean up of sargassum. Ms. Martinez made a motion directing staff to move forward expeditiously to find remedies for re- nourishment and provide a plan to the Council within the next 90 days. The motion was seconded by Mr. Chesney. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye "; Leal was absent. City Secretary Chapa polled the Council for their votes as follows: 12. ORDINANCE NO. 028494 Repealing Ordinance No. 027971, passed and approved on December 9, 2008 and amending the Code of Ordinances, City of Corpus Christi, Chapter 10, Beachfront Management and Construction, to restrict vehicular traffic on the Gulf Beach seaward of portions of the concrete segment of the Padre Island seawall and establishing a vehicle -free area when the distance between the toe of the seawall to the mean high tide line is less than 150 feet in width; allowing the operation of vehicles within 50 feet of the water's edge when parking and when soft-sand conditions prevent the safe transit of vehicles on the upper beach; allowing two -way vehicular traffic on the Gulf Beach between the northern end of the seawall and Padre Balli Park (Beach Access Road # 4); establishing a pedestrian safe area in the area seaward of 50 feet from the mean high tide line between the northern end of the concrete seawall and the Packery Channel jetty; committing the City Council to undertake efforts to restore and maintain the beach in front of the seawall to a minimum width of 200 feet; adding an appendix to the City of Corpus Christi, Texas, Dune Protection and Beach Minutes — Regular Council Meeting February 23, 2010 — Page 5 Access Regulations to show the approximate location of bollards to be installed on the beach; providing for penalties; providing for publication; and providing fora delayed effective date. (First Reading 02/16/10) The foregoing ordinance was passed and approved on its second reading with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye'"; Leal was absent. * * * * * * * * * * * ** Mayor Adame announced the executive sessions, which was listed on the agenda as follows: 13. Executive Session under Texas Government Code Section 551.071 Consultation with Attorney and Texas Government Code Section 551.074 Personnel matters regarding Municipal Court Magistrate Judge with possible discussion and action in open session. The Council went into executive session. The Council returned from executive session. No action was taken. * * * * * * * * * * ** 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. 0110 -04, Marwell Properties, LP: A change of zoning on a 1,000 square -foot portion of the property from an "1 -2" Light Industrial District to an "1 -3" Heavy Industrial District for an above ground fuel storage tank on property described as Allen & Cameron Industrial Park 5, Lots 6C and 6D, generally located at 7410 and 7412 Leopard Street, approximately 740 feet northwest of Southern Minerals Road. Interim Assistant Director of Development Services Faryce Goode -Macon referred to a powerpoint presentation including a 2009 aerial photo; the zoning map; the existing land use map; site map; "1 -2" and "1 -3" allowable uses; views of the subject property; and the future land use map. Ms. Goode -Macon stated that the Planning Commission and staff recommended denial of an "1 -3" Heavy Industrial District and in lieu of approval of an "I -2 /SP" Light Industrial District with a Special Permit for one (1) UL2085 above ground fuel storage tank not to exceed 1,000 gallons subject to a site plan and four (4) conditions. No one appeared in opposition to the zoning change. Mr. Elizondo made a motion to close the public hearing, seconded by Mr. Chesney, and passed. Mr. Chapa polled the Council for their votes as follows: 14. ORDINANCE NO. 028495 Amending the Zoning Ordinance, upon application by Marwell Properties, LP, by changing the Zoning Map in reference to 1,000 square foot portion of a .82 acre land parcel out of Allen & Cameron Industrial Park 5, Lots 6C and 6D, from "1 -2" Light Industrial District to "I- 2/SP" Heavy Industrial District with a Special Permit to allow for one (1) UL2085 above ground fuel storage tank not to exceed 1,000 gallons, subject to a site plan and four (4) conditions; 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. Minutes — Regular Council Meeting February 23, 2010 — Page 6 An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye "; Adler abstained. Mayor Adame referred to Item 15, and a motion was made, seconded and passed to open the public hearing on the following comprehensive plan amendment: 15. Public hearing and First Reading Ordinance amending the Comprehensive Plan of the City of Corpus Christi, by amending the Corpus Christi Urban Transportation Plan (as adopted by Ordinance No. 025251), and thereafter amended by Ordinances 026278 and 026402) and the Corpus Christi Future Land Use Plan (as adopted by Ordinance 026278) for the City and its extraterritorial jurisdiction; establishing a Unified Future Land Use and Transportation Plan for coordination of and use zoning subdivision development and Capital Improvements consistent with the public interest; amending related elements of the Comprehensive Plan of the city; and providing for publication. Senior City Planner Bob Payne referred to a powerpoint presentation including the purpose of the transportation plan; recommended changes to the transportation plan; the future land use map; and the future and use plan. The following topics pertaining to this item were discussed: the adoption of a policy for creation of a complete streets program; the development of an on -going comprehensive road plan for street maintenance; sources of funding for an infrastructure and street maintenance program; the South Loop Corridor concept and timetable; the high speed water taxi; the recommendation for Ennis Joslin south of SPID to Williams; whether medians on South Staples south of Saratoga were in this plan; the quality of aggregate for bicycle lanes; and the future plan for increasing capacity on FM 624 and County Road 52. Council Member Marez requested an update on the establishment of the comprehensive road plan. Council Member Scott requested an update on the use of the seawall debt to fund the street maintenance program. Mr. Scott also suggested a mid -year retreat to discuss the budget and include a discussion on the street maintenance program. Mayor Adame called for comments from the audience. Carolyn Moon, 4902 Calvin, spoke in support of the high speed water taxi and the light rail concepts. Ms. Adler made a motion to close the public hearing, second by Mr. Scott, and passed. Mr. " Chapa polled the Council for their votes as follows: 15. FIRST READING ORDINANCE Amending the Comprehensive Plan of the City of Corpus Christi, by amending the Corpus Christi Urban Transportation Plan (as adopted by Ordinance No. 025251), and thereafter amended by Ordinances 026278 and 026402) and the Corpus Christi Future Land Use Plan (as adopted by Ordinance 026278) for the City and its extraterritorial jurisdiction; establishing a Unified Future Land Use and Transportation Plan for coordination of land use zoning subdivision development and Capital Improvements consistent with the public interest; amending related elements of the Comprehensive Plan of the city; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". Minutes — Regular Council Meeting February 23, 2010 — Page 7 Mayor Adame opened discussion on item 16 regarding the purchase of police vehicles. Assistant Director of Financial Services Mike Barrera provided a brief explanation of the funding sources for the 46 police vehicles. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 16.a. ORDINANCE NO. 028496 Ordinance appropriating and approving the transfer of funds in the amount of $1,300,000 from the Unreserved Fund Balance in the No. 1020 General Fund for ''one time" expenditures into the Capital Outlay Budget of the Maintenance Services Fund No. 5110 for the purchase of vehicles; changing the FY 2009 -2010 Operating Budget adopted by Ordinance No. 028252 by increasing appropriations by $1,300,000 in the No. 1020 General Fund, and by increasing both estimated revenues and appropriations in the No. 5110 Maintenance Services Fund by $1,300,000, each. 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 ". 16.b. MOTION NO. 2010 -044 Motion approving the purchase of forty -one (41) police package sedans, one (1) pickup truck and one (1) cargo van from Champion Ford, Corpus Christi, Texas in accordance with Bid Invitation No. BI- 0062 -10, based on only bid and low bid for a total amount of $979,805. These units are replacements to the fleet and will be used by the Police Department, Uniform Division, Forensic Services Division and Crime Control. Funding is available in the FY 2009 -2010 Capital Outlay Budget of the Fleet Maintenance Fund. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". 16.c. MOTION NO. 2010 -045 Motion approving the purchase of vehicles from the following companies for the following amounts for a total amount of $95,883. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). These units are replacements to the fleet and will be used by the Police Department, Uniform Division. Funding is available in the FY 2009 -2010 Capital Outlay Budget of the Fleet Maintenance Fund. Caldwell Country Chevrolet Philpott Motors Ltd. Caldwell, Texas Nederland, Texas Line Item 5 Line Item 6 2 Tahoes 1 Transport Van $61,546 $34,337 Subtotal: $95,883 Grand Total - Recommendation A & B: $1,075,688 The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, Marez, Martinez, and Scott, voting "Aye ". Minutes — Regular Council Meeting February 23, 2010 — Page 8 MayorAdame opened discussion on Item 17 regarding the Memorial Coliseum demolition. Director of Engineering Services Pete Anaya referred to a powerpoint presentation including the project scope; delivery; schedule; and costs. Mr. Anaya introduced Vernon Carr, Project Manager with A &R Demolition, who was available to respond to questions. The following topics pertaining to this item were discussed: whether Mr. Clowerwas told that he would have until March 9th to provide a presentation to Council; the difference between the preliminary costs for demolition and what is presented today; and if change orders were anticipated. MayorAdame called for comments from the audience. George Clower, 304 S. Morningside, stated that he was told that he had until March 9th to present his presentation. Mr. Clower spoke regarding the structural analysis of the roof; cost estimates; the other improvements included in the •selective demolition; Section 106 of the National Historical Preservation Act; and historic designation. The following individuals spoke in opposition to demolishing the Coliseum and in support of an adaptive reuse: Carolyn Moon, 4902 Calvin; Daniel Lucio, 317 People Street; Ray Madrigal, 6717 Everhart; Emily Olivares, 4205 Dody Street; Mary Crabtree, 3407 Fairmont Drive; Joanna Gilbertson, 4601 Gulfbreeze Boulevard; Ann Smith, 1005 Meadowbrook Drive; Laurie Wood, 3517 Denver; Agnes Maier, 14814 Cobo de Bara; Roy Trejo, 505 S. Water Street; Carrie Robertson, 4401 Gulfbreeze; Johnny Cotton, 8206 Seashore Drive; Mary Ann Kelly, 4302 Schanen; and Judy Laverdee, 909 Driftwood. Vince Zavala, 4645 Branscomb Drive, and Abel Alonzo, 1701 Thames, spoke in support of demolition. Eric Baluski, 6717 Everhart, asked that the Council consider if the Memorial Coliseum would help downtown development and it not, then there is not a need for it. John Kelley, 413 Waco, spoke regarding the City's failure to maintain a public building. Dr. Gloria Scott, 4422 S. Alameda, asked the Council to put this item to a vote to let citizens decide. Council Member Scott stated that the conversations on this structure have been prolonged for seven (7) years and he does not consider removing the Coliseum as a bad thing. Mr. Scott said the site could be redeveloped as a public space with a significant memorial for the veterans. Mr. Scott also asked the City Manager if there was an opportunity to recycle some of the structure for a potential artificial reef development offshore. Council Member Chesney stated that he could not support this item because he feels that certificates of obligations should only be used for emergencies and this is not an emergency; that there is no plan in place for the Coliseum once it's demolished and he would consider only with a well thought out plan with a funding mechanism; and that he is not comfortable knocking down a memorial simply for political expediency. Mr. Chesney added that he thought Mr. Clower should be given more time to provide a presentation. Council Member Martinez stated that the goal for the Coliseum was to have an adaptive reuse for the building; however, there was not a viable and sustainable plan provided to the Council. Ms. Martinez commented that she felt that Mr. Clower's plan was not sustainable. Ms. Martinez stated that she hopes the City will develop a re- adaptive use policy in the future. Council Member Marez stated that the Council has received public input regarding the structure and that they value the opinion of the public. Mr. Marez added that the ultimate goal for the Coliseum was not to put a burden on the citizens. Mr. Marez said he looks forward to the opportunities for the future success of that site and would support total demolition. Minutes — Regular Council Meeting February 23, 2010 — Page 9 Council Member Kieschnick said the Coliseum issue should have been taken care of years ago and today the Council is going to make a decision for what is best for the City. Mr. Kieschnick added that he concurred with other council members that the veteran aspect needs tc be maintained. Mr. Keschnick said he had the utmost respect for the individuals who served our country. Council Member Leal stated that she felt that Mr. Glower should be given time to make a presentation on March 9th. Ms. Leal added that certificates of obligation should not be issued during these economic times. Ms. Leal asked questions regarding the waiver of minor irregularities in the engineering bids; the application for historical status; and Mr. Clower's inability to acquire certain permits and plans for the coliseum. Council Member Elizondo explained that the Council has been dealing with this issue and that it is time to move forward to the next chapter. Mr. Elizondo stated that the Council should give clear direction to the City Manager to do something extremely special to respectfully support the veterans. Council Member Adler stated that the Council has listened to the community and extended hope for many projects that did not work. Ms. Adler added that the Council cannot prolong this dividing issue any longer. Mayor Adame said that 20 years from now people will say that this Council made the right decision and that after months of discussion this property needs a new slate for new dreams and a new vision. Mr. Adame stated that it is important that passionate people help to create this public space with something that the veterans will be proud of. Mr. Adame added that the time has come to move this community forward. Mayor Adame made a motion to approve Item 17.a., 17.b., and 17.c. The motion was seconded by Mr. Kieschnick. The foregoing motion was passed and approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye "; Chesney and Leal voting "No ". City Secretary Chapa polled the Council for their votes as follows: 17.a. RESOLUTION NO. 028497 Resolution relating to establishing the City's intention to reimburse itself in an amount not to exceed $2,000,000 for the prior lawful expenditure of funds from the proceeds of Obligations to be issued by the City for authorized purposes relating to the demolition of the Memorial Coliseum; authorizing matters incident and related thereto; and providing an effective date. The foregoing resolution was passed and approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye "; Chesney and Leal voting "No" 17.b. ORDINANCE NO. 028498 Ordinance advancing up to $2,000,000 from the No. 1020 General Fund and appropriating into the No. 3128 Memorial Coliseum Demo 2010 CO Fund for expenditures related to the Memorial Coliseum demolition; providing for repayment of the advanced amount up to $2,000,000 to the No. 1020 General Fund from the sale of certificates of obligation. Minutes — Regular Council Meeting February 23, 2010 — Page 10 An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye "; Chesney and Leal voting "No ". 17.c. MOTION NO. 2010 -046 Motion authorizing the City Manager or his designee to execute a construction contract with A &R Demolition of Del Valle, Texas in the amount of $583,303 for the Memorial Coliseum Demolition project for the Total Base Bid. The foregoing motion was passed and approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Marez, Martinez, and Scott, voting "Aye "; Chesney and Leal voting "No ". project for the Total Alternate Bid. * * * * * * * * * * * ** Mayor Adame referred to Item 20 regarding a presentation on the proposed improvement to Nueces County Park No. 2 (Packery Channel Park). Assistant City Manager of Development Services Johnny Perales introduced Chairman of the Nueces County Park Board Charlie Zahn and Nueces County Parks Department Director Scott Cross. Mr. Zahn provided a brief overview of this item including the responsibilities and duties of the Nueces County Park Board; the number of parks in Nueces County that are maintained by the park commission; county owned property at Packery Channel; the development of a nature preserve; hike and bike trails; observation areas; a kayak staging and launching area; butterfly /hummingbird garden; parking; freshwater wetland area; an animal rescue center; and funding. The following topics pertaining to this item were discussed: ecotourism; next steps; and working in conjunction with the Texas State Aquarium and The University of Texas Marine and Science Center to develop the rescue center. * * * * * * * * * * * ** Mayer Adame called for petitions from the audience. Benito Barrera, 4221 Beard, asked the Council to consider restoring the benefits to crossing guards. Susie Luna Saldana, 4710 Hakel, spoke regarding the time for public comment and the change to benefits for crossing guards. Council Member Marez requested a cost analysis for the benefits for crossing guards. Wilson Wakefield, 6026 Killarmet, spoke in opposition to Las Brisas plant. Abel Alonzo, 1701 Thames, spoke regarding the economic situation of the City and the Las Brisas Plant. Chad Magill, Corpus Christi Hispanic Chamber of Commerce, spoke regarding the meeting of Texas mayors that was held over the weekend to discuss the economic difficulties and vision for the future. Mary Lou Huffman spoke regarding Memorandums of Understanding to develop projects and the proposed water park for the south side of the Ship Channel. * * * * * * * * * * * ** Mayor Adame opened discussion on Item 18 regarding a contract for consulting services related to the City's health plans and wellness initiatives. Director of Human Resources Cynthia Garcia explained that this item was a motion authorizing the City Manager to enter into a contract with Crest Benefits Consulting, Division of JDW Insurance to assist the City in evaluating the Minutes — Regular Council Meeting February 23, 2010 — Page 11 benefits and structure of the health plans, identify areas requiring changes; recommend wellness initiatives and best practices designed to impact plan costs and employee health; guide the City in examining the feasibility of implementing a clinic concept and possibility of a pharmacy component; and finding a long term solution for the City's GASB 45 requirements. Ms. Garcia provided a background of Crest Benefits Consulting and the evaluation process. Ms. Garcia introduced Crest Benefits Consulting representatives Elisa Holguin and Debbie Lopez and Ann Taylor with Humana who were available to respond to questions. The following topics pertaining to this item were discussed: Crest's relationship with the third party administrator; experience with developing clinics; non - network dialysis treatment; the GASB analysis; the request for interest (RFI) process; the difference between a request for proposal (RFP) process and RFI; whether professional service contracts need council approval; the contract extensions; the number of local companies involved in the RFI process; other work performed for the City by Crest Benefits Consulting; out of network expenses; evaluating the cost sharing plan for the out of network plan; and discussions with the Health Department regarding an in -house clinic. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 18. MOTION NO. 2010 -047 Motion authorizing the City Manager or his designee to execute a contract with Crest Benefits Consulting, Division of JDW Insurance of El Paso, Texas for consulting services related to the City's health plans and wellness initiatives to include the possible implementation of a clinic and pharmacy with an initial term of one year for an annual fee of $48,000 and with two one -year extensions for a maximum increase of 5% per year, upon contract execution by consultant. The foregoing motion was passed and approved with the following vote: Adame, Adler, Chesney, Elizondo, Kieschnick, Leal, and Martinez, voting "Aye "; Marez and Scott were absent. * * * * * * * * * * * ** Mayor Adame referred to Item 19 regarding the Health Benefits and Risk Management 1st Quarter Report. Ms. Garcia referred to a powerpoint presentation including plan enrollment; total medical and pharmacy expenses by subscriber; medical and pharmacy expenses; cost per employee performance; total health plan expenses; workers' compensation; general liability; and vehicle accidents status. Will Haff, Wortham, referred to a powerpoint presentation on the results of an audit of the self- insured health plans including the scope of services; discount and saving analysis; cost of accessing Humana PPO network discount; comparison of network discount to other public entities; enrollment distribution; distribution of paid medical claims; overall performance summary; medical claims comparison overview; prescription cost savings analysis; distribution of paid prescription claims; pharmacy plan cost comparison; comparison of pharmacy benefits to other public entities; Humana pharmacy overall performance summary; and opportunities for savings. The following topics pertaining to this item were discussed: the number of in- network dialysis providers; whether the plan has an option to receive brand or generic prescriptions; recommendations for wellness initiatives and an on -site clinic; additional suggestions for cost savings; whether Wortham deals directly with drug companies; and including a default for generic medications. Minutes — Regular Council Meeting February 23, 2010 — Page 12 Mayor Adame referred to Item 21 regarding the Corpus Christi Regional Economic Development Corporation (EDC) quarterly update. Roland Mower, CEO of the EDC, referred to a powerpoint presentation including the 2009 economic trends; the Think Big campaign; the three - prong strategy; the FutureBridge Initiative; economic development toolbox; activity summary for 2009; significant projects; current project successes; and increased workload. Council Member Leal thanked the EDC for their work and recommended reducing the allocation from the City. City Manager Escobar announced that Item 22 was being postponed by staff. 22. Economic Stimulus Initiative Update * * * * * * * * * * * ** There being no further business to come before the Council, Mayor Adame adjourned the Council meeting at 5:40 p.m. on February 23, 2010. * * * * * * * * * * * ** a. COMMITTEE FOR PERSONS WITH DISABILITIES — One (1) vacancy with term to 2 -1 -11. DUTIES: To carry on a program to 'encourage, assist and enable persons with disabilities to participate in the social and economic life of the city; to achieve maximum personal independence; to become gainfully employed; and to enjoy fully and use all public and private facilities available within the community. COMPOSITION: Nine (9) residents of the city who shall be appointed by the City Council. The membership of the committee shall be composed of individuals with disabilities and representatives of agencies and organizations functioning within the committee's area who are interested in the provision of services to persons with disabilities and others who are interested in the abilities and specific needs of persons with disabilities, subject to Council approval. The city's Director of Human Relations, Director of Park and Recreation, and Building Official shall serve as ex- officio non- voting members. The chairperson of the Committee for Persons with Disabilities shall serve as an ex- officio voting member of the Human Relations Commission. ORIGINAL MEMBERS TERM APPTD. DATE Thomas Dreyer 2 -01 -12 2 -19 -08 Abel Alonzo, Chair 2 -01 -12 7 -12 -05 Harvey Salinas 2 -01 -11 2 -20 -07 Dr. Candelario Huerta 2 -01 -11 1 -27 -09 Herman Lee Jones II 2 -01 -11 2 -20 -07 Maria B. Romero 2 -01 -12 2 -09 -10 Irene Martinez 2 -01 -12 2 -19 -08 Carlos Vargas 2 -01 -11 11 -11 -08 ** *Will S. Hinojosa 2 -01 -11 1 -27 -09 Park & Recreation Director Ex- officio Human Relations Director Ex- officio Building Official Ex- officio (The Committee for Persons with Disabilities is recommending the new appointment of Darren Bates). OTHER INDIVIDUALS EXPRESSING INTEREST Kristin Aldrighetti Currently Attending College. Received BBA in Marketing from The University of Texas at San Antonio and MS in Secondary Education from Texas A &M University - Corpus Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation Darren Bates Christina Cisneros Raymundo G. Garcia Andrea B. Green Keron E. Hasley Kevin Horrigan William Paul Hunt Christi. Activities include: Co- Sponsor for Future Business Professionals of America and Sponsor for Helping Hands Youth Community Service Organization. Recipient of CPS Volunteer Award. (10 -5 -09) Disability Program Navigator, Workforce Solutions of the Coastal Bend. Received Bachelor's Degree in Humanities - Fine Arts. Certified Workforce Development Expert and Workforce Development Professional. Activities include: Transportation Coordination Network -RTA, Community Resource Coordination Group for Adults - NCMHMR, and Texas Rehab Action Network. (1- 12 -10) Director, American Heart Association. Attended University of Texas, Del Mar College and Texas A &M University - Corpus Christi. Activities include: Planning and Development Board -Chula Vista Elementary, MDA Walk, Bayfest, Beach to Bay, Hispanic Women's Network Mentor /Speaker, Hispanic Chamber Member. Recipient of 2008 Hispanic Women's Network Las Estrellas Award. (2- 23 -09) Retired, United States Postal Service. Received Associates Degree in Science from Del Mar College. Activities include: Pan American Golf Association and Teach Driver's Safety Courses for the AARP. (11 -9 -09) Bookkeeper, Habitat for Humanity. Received BA in International Relations and MS in Accounting. (4- 20 -09) Assistant Cashier, IBC Bank. Attended Del Mar College. Activities include: United Way Allocations Committee. (4- 17 -09) Marketing Manager, South Texas Lighthouse for the Blind. Attended Darden School of Business, University of Virginia. Activities include: Volunteer at Lighthouse for the Blind. Recipient of the Milton J. Samuelson Award for 2009. (1- 21 -09) Retired, Environmental Engineer. Received a Bachelors Degree in Meteorology from Texas A &M University- College Station. Formerly Served on the Corpus Christi Regional Air Shed Committee. Activities include: Tutoring. (6 -4 -09) Terence F. Klinger Susanne M. Lunsford Bus Operator, Regional Transit Authority. United States Air Force Administration Specialist. Formerly Owned and Operated Midwest Pro Wrestling Academy. Formerly served as Cormunity Outreach Representative for metro Transit with Teens Alone. Streetworks and Homeless Connect, Minneapolis, Minnesota. (10-13-08) CEO - President, Real fEstate Global Sc i LLC. Attended College. Activities include: Rotary Club, PIBA and ADA. (4- 23 -09) Joel S. Mumphord Retired, Encycle, Inc. Served in Law Enforcement. Activities include: Host of T.V. Show, Community Action Agency, Molina Neighborhood Day Care, HIALCO President. (5- 21 -09) Gloria Sykes - Saucedo Manager of Volunteer Services, Odyssey Healthcare. Received an Associates Degree. Activities include: Fund Raisers, Volunteer at Nursing Homes and Volunteer with Foster Children. (1- 14 -10) Ernest M. Trevino, Jr. Retired, United States Postal Service. Received AA from Del Mar College. Served in the United States Air Force. Activities include: Volunteer at USS Lexington. Recipient Good Conduct Medal, United States Air Force. (12- 26 -08) Leonard (Leo) Vasquez, Jr. Retired, Disabled Veteran. Attended Del Mar College and University of Maryland. Activities include: Veterans Service Office - Disabled American Veterans District Adjunct, Representative /Advocate. Recipient of 1992 Corpus Christi Caller -Times Volunteer of the Year Award, Texas National Guard/Adjunct General Performance Recognition Medallion and 2005 Presidential Medal of Freedom Nominee. (1- 14 -10) Jose R. Villanueva, Jr. Retired. Senior Companion Volunteer. (12- 23 -09) Timothy Weitzel Manager, Retail Store. Attending Del Mar College Activities include: Webmaster, Corpus Christi Commodores Barbershop Chorus and National Piano Guild Member. (11 -5 -08) Felix Zavala, Jr. Pastor, El Shaddai Church. Activities include: Prayer Meetings. (8- 10 -09) b. MUSEUM OF SCIENCE AND HISTORY ADVISORY COMMITTEE — One vacancy with term to 9 -1 -11. (Appointed by the Mayor with advice and consent of the Council) DUTIES: To consult with the Museum Director on operation of the museum, to act as advisory to the City Council on matters pertaining to the operation, support, and development of the Corpus Christi Museum. COMPOSITION: Twelve (12) members appointed by the Mayor, with advice and consent of the Council, to be selected as follows: 1 nominated by CCISD Board; 3 nominated by Friends of the Museum; 2 nominated by Museum Auxiliary; and 6 by the Mayor who shall seek suggestions from Friends of the Museum, Museum Auxiliary, Museum Advisory Board, and from Board of Trustees of other Corpus Christi school districts. Ex- officio members shall include the City Manager and Superintendent of CCISD, or their designated representatives. The term of each advisory member shall be three years. MEMBERS * * *Nelida Ortiz Thomas Kimes (Museum Aux.), Vice Chair Shannon Madden Dr. Robert Hatherill (Friends of Museum) Lucia Inez Sosa (Friends of Museum) Kathy N. Juneau (Museum Auxiliary) Linda Torno (CCISD) Jim Moloney (Friends of Museum), Chair Georganne Gasaway Dr. Jonda Halcomb Kimberly Harris Pablo Arturo Garza City Manager CCISD Superintendent INDIVIDUALS EXPRESSING INTEREST Kristin Aldrighetti TERM 9 -01 -11 9 -01 -10 9 -01 -10 9 -01 -12 9 -01 -11 9 -01 -10 9 -01 -12 9 -01 -10 9 -01 -11 9 -01 -12 9 -01 -10 9 -01 -12 Ex- officio, Ex- officio, ORIGINAL APPTD.DATE 10 -10 -06 9 -11 -07 9 -23 -08 12 -20 -05 9 -11 -07 9 -11 -07 12 -20 -05 9 -11 -07 2 -12 -08 10 -10 -06 9 -11 -07 10 -13 -09 nonvoting nonvoting Currently Attending College. Received BBA in Marketing from The University of Texas at San Antonio and MS in Secondary Education from Texas A &M University - Corpus Christi. Activities include: Co- Sponsor for Future Business Professionals of America and Sponsor for Helping Hands Youth Community Service Organization. Recipient of CPS Volunteer Award. (10 -5 -09) Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation Mona Baen Charli Barrera Angelica Carmona Jeremy Coleman Ariana Cordero Timothy Scott Craig Susie Crowson Melissa Espitia Timothy Goss President, Stewart Title. Activities include: Executive Women's International, Rotary Club, and CCAR. (5 -13- 09) Senior, West Oso High School. Activities include: Interact Club, Drama, Computer Applications, Informative Speaking and Student Council President. Honor Roll Student. (5- 29 -09) Salon Manager, Planet Sol Hair Salon. Attended Texas &M University - Corpus Christi. Activities include: Corpus Christi Pregnancy Center, Mission 911, and City Church Corpus Christi. Graduate of Leadership Corpus Christi Class 37. (6 -5 -09) Secretary, St. John Baptist Church. Currently attending Del Mar College. Activities include: Nueces County Community Action Agency, Mayor's Advisory Board, Brooks Chapel Early Childhood Center, Youth Council and Foundation of Corpus Christi, Camp Fire U.S.A., N.A.A.C.P., and State of Texas Student Council Association. (1- 25 -09) Graduate, West Oso High School. Former Activities included: National Honor Society, Student Council, and Interact Club. (10 -3 -08) Pipefitter, Kiewitt. Received A.A.S. in Drafting Technology from Victoria College. (12 -7 -09) Assistant Professor, Del Mar College. Received BA and MA from Texas Tech and PhD from Texas Woman's University. (4- 29 -09) Ad Sales Coordinator, USDM.net. Graduate of Texas A &M University - Corpus Christi. Activities include: Art Museum of South Texas, Women's Shelter, and The Cattery. (10 -9 -09) Registered Representative /Agent, New York Life. Former Special Agent with United States Army Intelligence. Received Associates Degree from Harold Washington College, BS in Sociology from University of the State of New York and Master of Public Administration from Troy University. Attended Japanese Language School — Read, Writes, and Speaks Japanese. (4- 21 -09) Meredith N. Grant Homemaker. Received B.A. in English from Texas A &M University - Corpus Christi. Certified Interior Decorator. Activities include: Junior League of Corpus Christi, Art Museum of South Texas, and Beautify Corpus Christi Association. (10- 14 -08) Daniel Hall Self - Employed, Speaker and Writer. Received a Bachelor of Science in Nursing and a Juris Doctorate. Activities include: Board of Directors for the south Texas Family Planning and Health Corporation. (2 -5 -10) Kevin Horrigan Marketing Manager, South Texas Lighthouse for the Blind. Attended Darden School of Business, University of Virginia. Activities include: Volunteer at Lighthouse for the Blind. Recipient of the Milton J. Samuelson Award for 2009. (1- 21 -09) William Paul Hunt Retired, Environmental Engineer. Received a Bachelors Degree in Meteorology from Texas A &M University- College Station. Formerly Served on the Corpus Christi Regional Air Shed Committee. Activities include: Tutoring. (6 -4 -09) Randy Lara Prepress Supervisor, Printers Unlimited. Attended Del Mar College, Texas A &M University at Kingsville and Southwest Texas State University at San Marcos. Activities include: Boy Scout #162. Recipient of Addy Awards for Graphic Design and Gold and Silver Aster Awards for Medical Marketing Campaign. (12 -4 -08) John Douglas McMullan Professional Engineer, Freese and Nichols, Inc. Received Bachelor Degree in Engineering. Activities include: American Society of Civil Engineers, Water Environment Federation, and St. Pius X School. (1- 21 -09) Anthony John Mulheron Aircraft Production Lead, AECOM. Attending Del Mar College. Activities include: Wounded Warrior Project Soldier, Independence Masonic Lodge 1337 and HEART — Hero's Assistance Program. Recipient of Army Achievement Civilian Award. (12 -7 -09) Monica Pena -Moore Director of Special Events, Corpus Christi Chamber of Commerce. Activities include: Cub Master, Wednesday Morning Group, National Multiple Sclerosis Society, and American Cancer Society -Relay for Life. (12 -1 -08) Heriberto A. (Tony) Pineda GS -11 Quality Assurance, Department of the Navy. Retired United State Navy. Activities include: American Society for Quality and USO of South Texas Volunteer. Recipient of Southeast Asia Service Medal, Navy Expeditionary Medal and Global War on Terror Medal. (10 -6 -99) Judith Prewitt, Ph.D. Michael O. San Miguel Educator /Tutor, Texas A &M University- Corpus Christi, US Veteran's Administrator, and Texas DARS. Owner, Prewitt Professional Partnership. Received B.A. in Mathematics with Physics and Engineering from Swarthmore College, M.A. in Mathematics from University of Pennsylvania Graduate School of Arts and Sciences, and Ph.D. in Mathematics from Uppsala University, Sweden. Activities include: Society of Sigma Xi Life Member - Secretary of South Texas Chapter. (5- 15 -09) (Currently Serves on the Arts and Cultural Commission, but will resign if appointed to this Committee) Received BS from University of Texas -San Antonio. Formerly Served on Small Business Advisory Board. Participated in City of Corpus Christi Citizen University (2007). Activities include: CompTIA and Pearson. (10 -6- 09) Amber Sayre Currently Attends Del Mar College, Registered Nurse Program. (10 -6 -09) Andrew G. Smith Business Consultant, Education Service Center Region 2. Received BBA in Accounting from University of Texas at Austin and Master of Public Administration from Texas A &M University - Corpus Christi. Activities include: Texas Association of School Business Officials, Church and Sailing. (2 -5 -10) Scott Sutherland Gloria Sykes - Saucedo Ernest M. Trevino, Jr. Vice President/Business Development, Valuebank Texas. Received BBA in General Business from Corpus Christi State University. (10 -6 -09) Manager of Volunteer Services, Odyssey Healthcare. Received an Associates Degree. Activities include: Fund Raisers, Volunteer at Nursing Homes and Volunteer with Foster Children. (1- 14 -10) Retired, United States Postal Service. Received AA from Del Mar College. Served in the United States Air Force. Activities include: Volunteer at USS Lexington. Recipient of Good Conduct Medal, United States Air Force. (12 -26- 08) Michael Tromm Steve Trubatisky Preshop Analysis Engine Examiner, Corpus Christi Army Depot. Attended Del Mar College and General Motors University of Automotive Management. Served in the United States Air Force. Activities include: Maxine Flournoy Third Coast Squadron of the Commemorative Air Force. Recipient of Commemorative Air Force Silver Magnolia Award. (1- 12 -09) Real Estate Broker Associate, Realty World Island Properties. Attended Tarleton State University, Stephenville, Texas. Activities include: Corpus Christi Association of Realtors. (2- 11 -09) Janet Zuniga Senior, West Oso High School. Activities include: Student Council and Interact Club. (5- 29 -09) 3 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: March 9, 2010 AGENDA ITEM: Ordinance authorizing the City Manager, or designee, to execute a three - year contract and lease agreement with Susan Shelby Torrance (Pro) for tennis operations at the Al Kruse Tennis Center in consideration of Pro paying the city 5% of Pro and lesson revenue, and collecting and forwarding city revenue to city in return for Pro's exclusive use of tennis center, and city paying Pro $3,166 per month for Pro operating tennis center; and declaring an emergency. ISSUE: A contract must be authorized for continuation of tennis pro services at the Al Kruse Tennis Center. REQUIRED COUNCIL ACTION: The City Council must approve all multi -year leases. PREVIOUS COUNCIL ACTION: The City Council previously approved a five -year lease with Susan Torrance in January 11, 2005 (Ordinance #026111). FUNDING: Professional services are currently budgeted. CONCLUSION AND RECOMMENDATION: Staff recommends that the City Council approve the new contract and lease agreement with Susan Torrance to provide professional services and management of the Al Kruse Tennis Center. Stacie A. Talbert, Interim Director Parks and Recreation Department staciet @cctexas.com (361)826 -3476 Attachments: Background Information BACKGROUND INFORMATION In FY09, revenues deposited to the General Fund by the Al Kruse Tennis Center were $22,542, expenditures were $69,277, including the tennis pro contract of $37,992. Susan Torrance began at the Al Kruse Tennis Center in May, 1987. She had over four years experience as an Assistant Pro at the time she took over as Pro in 1991. She has been the pro at the tennis center since then. She is certified as a Class I Professional by the United States Professional Tennis Association (USPTA.) ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A THREE YEAR CONTRACT AND LEASE AGREEMENT WITH SUSAN SHELBY TORRANCE (PRO) FOR TENNIS OPERATIONS AT THE AL KRUSE TENNIS CENTER IN CONSIDERATION OF PRO PAYING THE CITY 5% OF PRO AND LESSON REVENUE AND COLLECTING AND FORWARDING CITY REVENUE TO CITY IN RETURN FOR PRO'S EXCLUSIVE USE OF TENNIS CENTER, AND CITY PAYING PRO $3,166 PER MONTH FOR PRO OPERATING TENNIS CENTER; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager or designee is authorized to execute a three year contract and lease agreement with Susan Shelby Torrance (Pro) for tennis operations at the Al Kruse Tennis Center in consideration of Pro paying the City 5% of pro and lesson revenue and collecting and forwarding city revenue to City in return for Pro's exclusive use of Tennis Center, and City paying pro $3,166 per month for pro operating tennis center. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the day of 2010 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Approved: February 19, 2010 By: Lisa Aguilar, Interim City Attorney Joe Adame Mayor H:\PR -DIR \SHARED\AGENDA ITEMS \Council Meetings\2010\3 March 2010 \030910 \Torrance Al Kruse Pro Contract ORDINANCE.DOC Page 1 of 8 Tennis Pro Contract & Lease of Al Kruse Municipal Tennis Center Susan Shelby Torrance THE STATE OF TEXAS § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § This Tennis Pro Contract, ( "Contract') and Lease of the Al Kruse Municipal Tennis Center ( "Facility ") is between the City of Corpus Christi, a Texas home rule municipal corporation ( "City "), and Susan Shelby Torrance of Nueces County, Texas, ( "Pro "). In consideration of the covenants herein, the City and Pro agree as follows: 1. Term. City contracts with Pro as Tennis Professional at the Al Kruse Municipal Tennis Center subject to all of the terms of this service Contract. Further, City leases the Facility to Pro, subject to the terms of this Contract. This Contract and Lease is for three (3) years, unless sooner terminated arid extending from month to month upon the same terms and conditions as set out herein until a new contract and lease are agreed upon. This Contract and Lease is effective on final approval by the City Council. 2. Monthly Pro Fee. City shall pay Pro Three Thousand One Hundred and Sixty -Six Dollars ($3,166) per month payable monthly on the first business day of each calendar month during the Lease, as the monthly tennis Pro fee for Pro's services provided hereunder. For any fee due after fiscal year 2009 -2010, the monthly pro fee is subject to appropriation by City Council in the applicable fiscal year budget. If a monthly Pro fee of at least $3,166 is not appropriated during the annual budget process, City shall terminate this Contract upon thirty (30) days notice to Pro. 3. Pro Responsibilities. A. Compliance with Laws. Pro must operate Al Kruse Municipal Tennis Center (the "Facility ") in conformity with the laws of the State of Texas and the ordinances, rules and regulations of the City of Corpus Christi. B. Pro's Qualifications. Pro must be experienced in the management, supervision, and operation of a tennis facility. The Pro must have and maintain a Class I rating from the United States Professional Tennis Association. The Pro's primary duty is to manage and control the administration and operation of the Facility. It is expressly understood that Pro is an independent contractor and not a City employee and is not entitled to the benefits normally accorded to City employees. C. Pro Supervision of Facility. Pro is directly responsible for supervising the Facility, including without limitation, all activities in the locker /restroom. D. Facility Rules. Pro shall adequately publish and enforce all rules and regulations governing the playing of tennis, and all other activities, as may be conducted at Facility. E. Cash Handling. Pro must provide fidelity bonds for herself and any of Pro's employees who handle cash or credit cards. These bonds must be provided to the Director of Park and Recreation or designee ( "Park Director ") and must be good and sufficient fidelity bonds in the sum of Five Thousand ($5,000) Dollars, written by a corporate surety duly licensed under Texas Page 2of8 laws to write fidelity bonds. These bonds must be kept in effect for the entire term of this Contract and any holdover period. These bonds must assure payment to the City of all City Revenue collected by Pro and Pro's employees on behalf of the City and the prompt payment of five (5 %) percent of Pro Revenue, including Lesson Revenue, to which the City is entitled. F. Background Investigation. Pro agrees that City will conduct a background investigation of Pro and all of Pro's employee's at City's expense. A release authorizing the background investigation must be executed by the Pro and Pro's employees. City shall terminate this contract if the City finds a felony conviction, convictions for crime of moral turpitude, or conviction for any drug offenses. Pro shall terminate any of Pro's employees for the same causes. G. Pro's Employees. Pro, at Pro's expense, will employ sufficient employees to assist Pro in conducting lessons, operating the Pro Shop, and scheduling courts. All these employees will be in the employ of Pro, and not employees of, do not have any contractual relationship with, and are not entitled to any benefits from the City. Pro shall pay the salaries of all of Pro's employees. All services under this Contract must be provided by or under the supervision of Susan Shelby Torrance. All of Pro's employees must be fully qualified to perform all Contract services performed by each of them. None of the services under this Contract may be subcontracted without the prior written approval of the Park Director. Pro is responsible for and must control the activities of Pro and Pro's employees at the Facility and must take whatever action is necessary to insure that Pro and Pro's employees conduct themselves in an orderly manner and in keeping with the conduct required of employees in service organizations in general. Pro shall insure that Pro and Pro's employees do not consume intoxicating substances at the Facility, or report to work under the influence of same. Pro shall insure that Pro's conduct and language, and that of Pro's employees, is above reproach, taking into consideration the Facility is viewed as a City facility, and that it caters to families and youth with many children participating. H. Taxes. Pro, at her expense, will pay all payroll taxes, F.I.C.A. taxes, and all other related taxes prior to the past due date. I. Programs. 1. Pro must maintain and promote a continuing program to attract citizens and tourists, to use of the Facility, particularly weekday play, and must maintain rental tennis rackets for use by the public. A schedule of hours of operation for the Facility must be posted at the Facility and filed with the Park Director. 2. Pro shall promote the game of tennis through youth programs. 3. Pro must biannually, in January and August, submit to the Park Director a program of Page 3 of 8 activities for the forthcoming reporting period identifying, at a minimum, leagues, lessons, youth and adult programs, tournaments by dates and estimated number of participants and hours of operation. J. Court Fees. Pro will adequately publicize all City approved tennis fees. K. Required Signage. Pro will provide suitable signs at the Facility Pro Shop advising the public that the business activity is operated by Pro as an independent contractor and not operated by City. L. Nondiscrimination. Pro is responsible for the fair and just treatment of all Pro's employees. Pro must insure that no employee or participant is discriminated against because of disability, sex, race, color, creed, or national origin. M. Dangerous Conditions. Pro must promptly notify the Park Director of all dangerous conditions or special defects at the Facility. Until City repairs or otherwise remedies the dangerous conditions or special defect's Pro must not use, or allow to be used, any area of the Facility which has dangerous conditions or special defects. N. Alterations. Pro will make no alterations to the Facility without the Park Director's prior written approval of Pro's proposed plans for alteration. 0. Public Courts. Since the Al Kruse Municipal Tennis Center is owned by the City for the benefit of City residents, Pro must make a minimum of four (4) tennis courts available to the public whenever the Pro or Pro's authorized individuals are giving, or available to give tennis lessons, with the exception of tournaments. P. Facility Maintenance. City is responsible for all Facility maintenance and major and minor repairs at the Facility to the extent shown in Exhibit "2 "; and in consideration thereof, it is agreed that Pro must make no claim for any damages against the City for loss of income due to the City's failure to make any repairs. 4. Consideration for Facility. As consideration for lease of the Facility, Pro must collect and deposit all City Revenue daily in City's account; and Pro must collect Pro Revenue and Lesson Revenue daily and deposit daily in City's account 5% of Pro Revenue and 5% of Lesson Revenue, as set out in Section 5 below. 5. Revenue. A. City Revenue. "City Revenue" means all court fees, permit fees, locker fees, and other City charges at the then current rate set by the Park Director in accordance with Sec. 36 -3. Rental Rates of the City Code of Ordinances. City Revenue does not include any Pro Revenue. B. Pro Revenue. "Pro Revenue" means all gross revenue received from the Pro shop or for use of the Facility, including but not limited to, tournaments, league play, merchandise sales, racket rentals, tennis lessons (i.e., Lesson Revenue), racket stringing, racket repairs, food and drink sales, excluding all applicable separately stated taxes and bulk merchandise sales to schools at wholesale prices if Pro provides the Park Director with a copy of the sales receipt. To be excluded from Pro Revenue, any other wholesale or bulk sale to anyone but a school, must be approved in writing by the Park Director prior to the sale. Page 4 of 8 C. Lesson Revenue. Pro has the exclusive right at Al Kruse Municipal Tennis Center to give, or authorize, tennis lessons. "Lesson Revenue" means all revenue produced from giving or authorizing tennis lessons, camps or other forms of teaching sessions. If any person receiving tennis lessons does not have a tennis permit, Pro must charge a court fee for each lesson given, which court fee will be deposited as City Revenue. D. Payment of Revenue. 1. City Revenue. Pro must deposit, daily, all City Revenue, together with daily cash register tapes and the daily report at the City's designated depository. 2. Pro and Lesson Revenue. As stated in Section 4, Pro must deposit in City's account City's 5% of Pro Revenue and 5% of Lesson Revenue daily beginning on the effective day of this contract as part of the daily deposit. E. Bonus Revenue. If City Revenue exceeds $25,000 in any City fiscal year (August 1 to July 31) City shall pay Pro 5 percent of all City Revenue in excess of $25,000 for the remainder of that City Fiscal year, on or before the fifteenth (15th) day of the month following the month in which the $25,000 in City Revenue was received, and by the 15th monthly thereafter through the first month of the following fiscal year. 6. Exclusive Right. Pro is granted the exclusive right to operate a pro shop at Al Kruse Municipal Tennis Center including the right to A. Sell merchandise B. Rent rackets, ball machines, buckets of balls C. String rackets D. Repair rackets E. Operate a food and :a I drink concession During this contract, City will not grant to any other person or organization the right to sell at Al Kruse Municipal Tennis Center any items available at the Pro Shop, or allow anyone else to give paid tennis lessons except through or with the consent of the Pro. 7. Record Keeping. Pro must furnish to the City's Director of Finance, or designee, ( "Finance Director") a certified monthly statement of Pro Revenue on or before the tenth day of each month during the Lease. The Finance Director will approve the statement form prior to commencement of this Lease. The statement form may be altered at the Finance Director's discretion. Pro must keep accurate books of account of all Pro Revenue collected. The books of account will be open for inspection, copying, or audit by City Manager, or designee, (City Manager") at all times. All books of account and backup documentation must be available to the Director for review during City's business hours at the Facility. City's Director of Finance and Pro's designee will approve the form for the daily report. Page 5 of 8 All underlying documentation for Pro Revenue, Lesson Revenue, City Revenue, and Pro's certified monthly statement, including cash register tapes, purchase orders, invoices, sales receipts, counter information, and the like, must be preserved by Pro during the lease term and for at least two years thereafter, including any holdover period. Accounting records, ledgers, journals, and reports with regard to Pro Revenue, Lesson Revenue and City Revenue must be retained for five (5) years after termination of this Contract. City may terminate this Lease for failure to preserve the records or to provide them to City Manager upon request. Pro must provide the Park Director copies of its quarterly sales tax reports for all sales at the Facility within 30 days of Park Director's written request therefor. Failure to provide said copies is cause to terminate this Lease. 8. Taxes. Pro must pay any and all assessments or taxes, however incurred, arising from the use of the Facility, the sale of merchandise or services pursuant to this Contract, including without limitation sales or use taxes, ad valorem taxes, and federal income taxes prior to the taxes becoming past due. 9. Utilities. City, as owner of the Facility, will provide electrical, gas, water, and wastewater service to the Facility. In managing the Facility, Pro must practice energy conservation efforts to efficiently use water, electrical and natural gas resources. A. General Liability. Pro shall secure and maintain a Broad Form comprehensive general liability insurance policy to include but not limited to: Premises — Operations, Products - Completed operations, contractual liability coverage with minimum limits of Five Hundred Thousand Dollars ($500,000) combined single limit per occurrence for Bodily Injury and Property Damage. The City of Corpus Christi shall be named as an additional Insured on the policy. The comprehensive general liability policy carried by the Pro under this Contract is the primary coverage in case of loss or damage related to Pro's operation of the Facility. A copy of the policy shall be submitted to the Director for approval prior to commencement of this Contract. B. Worker's Compensation. Pro shall secure and maintain worker's compensation insurance; which provides a waiver of subrogation in favor of the City of Corpus Christi. C. Insurance Certificate. As evidence of the insurance coverage required by this Contract and prior to execution of this Contract, the Pro shall furnish certificate(s) of insurance to the Director. The Certificate(s) will specify parties who are additional insured and will indicate what endorsements are included and what exclusions are removed. D. Cancellation Notice. There shall not be any cancellation, material change, or intent not to renew the insurance policies without thirty (30) days prior written notice to the Director. 11. Assignment. This Contract is a personal service contract and is not assignable. .`. The City Manager, may, after 45 days advance written notice and opportunity to cure, terminate this Contract for a breach by Pro of the Contract if breach has not been cured; however, the City Manager may immediately terminate this Contract if Pro's breach involves misappropriation of City funds, failure to produce financial or accounting documentation as required herein, or a serious or imminent danger to the public. Pro may terminate this Contract Page 6of8 if the Pro provides the Park Director 45 days advance written notice. This Contract terminates immediately upon the death of Susan Shelby Torrance. 13. City Responsibilities. A. Ownership. City owns the Al Kruse Municipal Tennis Center facilities, all improvements, and buildings located thereon; the furnishings and equipment for the locker room /restroom area, as shown on Exhibit "1" attached hereto and made a part hereof for all purposes; and the office equipment, including without limitation, a cash register and basic supplies, located in the Pro Shop and /or office. B. Telephone. City will pay for one telephone for local calls. C. Security. City has installed security equipment, including sound and movement detectors, in the pro shop and concession building. The Pro must pay the monthly bill for the security services. D. Facility Maintenance. City is responsible for all Facility maintenance and major and minor repairs at the Facility to the extent shown in Exhibit "2 "; and in consideration thereof, it is agreed that Pro must make no claim for any damages against the City for loss of income due to the City's failure to make any repairs. E. Janitorial. City will clean the Facility ateatthttrrtes vreely and will supply all cleaning supplies. F. Promotion of Facility. City shall continue its promotional activities for the Facility, including brochures and listings in departmental literature. 14. Indemnity. Pro must fully indemnify, save and hold harmless City, its officers, employees, and agents (hereinafter "the Indemnitees ") against any and all liability, damage, loss, claims, demands and actions of any nature whatsoever on account of personal injuries (including, without limitation on the foregoing, workers' compensation and death claims), or property loss or damage of any kind whatsoever, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any way connected with, tennis related activities undertaken pursuant to this Tennis Pro Contract and Lease of Al Kruse Municipal Tennis Center or any operations or activities thereunder. Pro shall at its own expense investigate all these claims and demands, attend to their settlement or other disposition, defend all actions based thereon and pay all charges of attorneys and all other costs and expenses of any kind arising from the liability, damage, loss, claims, demand, and actions. Page 7of8 15. Notices. Notice may be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed or hand delivered or on the third day after deposit if sent certified mail. Notice must be sent as follows: IF TO CITY: City of Corpus Christi Attention: Director Park & Recreation P.O. Box 9277 Corpus Christi, Texas 78469 -9277 FAX No: (361)826 -3864 Phone No.: (361) 826 -3461 IF TO PRO: Susan Shelby Torrance 3205 Kennsington Court Corpus Christi, Texas 78414 Phone No. (361) 994 -9382 16. Amendments. Modifications to this Contract are not effective unless signed by a duly authorized representative of all parties hereto. Modifications which do not change the essential scope and purpose of the contract, specifically including without limitation the amount of the monthly pro fee, may be approved on behalf of the City by the City Manager. SIGNED this day of , 2010. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Approved this day of , 2010. Lisa Aguilar Assistant City Attorney TENNIS PRO, "Pro" Susan Shelby Torrance Angel Escobar City Manager STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2010, by Page 8of8 Notary Public, State of Texas Printed Name: Page 1 of 1 EXHIBIT 2 DETAILED CONDITIONS FOR FACILITY MAINTENANCE CITY OF CORPUS CHRISTI, TEXAS AL Kruse Tennis Center WITH Susan Shelby Torrance This Exhibit 2 contains detailed conditions for facility maintenance for Al Kruse Tennis Center ( "Facility ") defined in, and is attached to and governed by, the CITY OF CORPUS CHRISTI, TEXAS Tennis Pro Contract and Lease Agreement with Susan Shelby Torrance( "Pro "). 1. City Responsibilities 1.1 Buildings: Bathrooms /dressing rooms; clean and sanitize water closet, sinks, showers and urinals daily and as needed; sweep and mop floors daily and as needed; strip and wax floors quarterly; pick up litter daily and as needed; keep up with all paper goods daily and as needed; clean windows weekly and as needed. 1.2 Grounds: Litter pickup daily and as needed; bag and manage all trash cans as needed; inspect fencing and lumite daily and make necessary repairs; fill holes and level ruts in all areas; clean and remove graffiti; replace all domestic lighting (general bulbs and fluorescent tubes); make general minor repairs to facilities including plumbing; painting and park furniture; assist tennis center staff in replacing tennis nets, center straps and bindings; paint restrooms and other areas when needed (annually). 1.3 Gardening and landscaping: All mowing, trimming, and clean up; watering and minor irrigation repairs; pruning shrubs, trees and rose bushes; brush clean up; maintain all flowerbeds (includes removing weeds, preparing and planting seasonal plants to enhance the facilities; spray insecticide, herbicides, fungicides, weed killer and treat for ants when needed. 1.4 Capital Improvements. City will fund capital improvements determined by the City that are needed at its discretion. 1.5 Contact Person. For the Lease, the City's contact person is the Park Director. H: \PR- DIR \SHARED\AGENDA ITEMS \Council Meetings\2010 \3 March 2010 \030910 \Torrance Al Kruse Tennis Pro Contract Exhibit 2.doc ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A THREE YEAR CONTRACT AND LEASE AGREEMENT WITH SUSAN SHELBY TORRANCE (PRO) FOR TENNIS OPERATIONS AT THE AL KRUSE TENNIS CENTER IN CONSIDERATION OF PRO PAYING THE CITY 5% OF PRO AND LESSON REVENUE AND COLLECTING AND FORWARDING CITY REVENUE TO CITY IN RETURN FOR PRO'S EXCLUSIVE USE OF TENNIS CENTER, AND CITY PAYING PRO $3,166 PER MONTH FOR PRO OPERATING TENNIS CENTER; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager or designee is authorized to execute a three year contract and lease agreement with Susan Shelby Torrance (Pro) for tennis operations at the Al Kruse Tennis Center in consideration of Pro paying the City 5% of pro and lesson revenue and collecting and forwarding city revenue to City in return for Pro's exclusive use of Tennis Center, and City paying pro $3,166 per month for pro operating tennis center. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the day of 2010 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Approved: February 19, 2010 By: . :-7 _y v Lisa Aguilar, Inteirm City Attorney H: \LEG- DIR \Lisa\2010 Ordinance \Susan Torrance.DOC Joe Adame Mayor Corpus Christi, Texas Day of , 2010 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 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: March 9, 2010 AGENDA ITEM: Resolution authorizing the City Manager, or designee, to execute an interlocal cooperation agreement, in the amount of $10,000, with the University of Texas Marine Science Institute (UTMSI), for UTMSI to provide for the monitoring of the Gulf of Mexico beaches from the North Jetty of Packery Channel to the North boundary of the City of Corpus Christi city limits for turtles during sea turtle nesting season, March 15th to September 30th ISSUE: In accordance with the US Army Corps of Engineers beach maintenance permit, the City of Corpus Christi is required to have turtle monitoring take place on the Gulf of Mexico beaches. The City of Corpus Christi has requested the assistance of UTMSI to monitor for turtles from March 15th to Sept. 30th (turtle nesting season) and the City of Corpus Christi would be billed for the costs of these services. With the approval of this interlocal agreement with UTSMI, the Beach Operations Division will be able to save approximately $21,000.00 annually. REQUIRED COUNCIL ACTION: Council must approve interlocal agreements. PREVIOUS COUNCIL ACTION: Council approved in 2009 an interlocal agreement with the Padre Island National Seashore to provide monitoring of the Gulf Beaches from the South Jetty of Packery Channel to the north boundary of their property for turtles during sea turtle nesting season. CONCLUSION AND RECOMMENDATION: Staff recommends approval of interlocal agreement with UTMSI for turtle monitoring. Stacie Talbert, Interim Director Parks and Recreation staciet @cctexas.com (361)826 -3476 Attachment: Background Information BACKGROUND INFORMATION In December 2008 the City of Corpus Christi was granted a Beach Maintenance Permit from the United States Army Corps of Engineers. The permits states that the following patrol must occur: - Beginning March 15, 2009 through September 30, 2009 the City of Corpus Christi must provide a turtle patrol from 6:30am to 6:30pm. The Kemp Ridley Sea Turtle is an endangered species that nests on our local gulf beaches. - A turtle monitor must be present in front of all equipment operating on the beach. The turtle monitors will be patrolling the beach in All Terrain Vehicles, (ATVs). - In addition, each turtle monitor will receive training from the Padre Island National Seashore (PINS). On February 25, 2010 Cynthia Rubio with PINS trained all current beach staff and re- certifies one Beach Manager and Beach Superintendent to provide the training to all new staff employed in the future. Tony Amos has been with The University of Texas Marine Science Institute in Port Aransas for the past 33 years. He officially retired in 2003 but continues an active role in the University as a Research Fellow doing long -term observations on Mustang and San Jose Island Gulf beaches, and directing the Animal Rehabilitation Keep (ARK). In the first year of turtle monitoring and patrolling, the Beach Operations Division incurred a little over $93,000.00 for this program. - In 2009, the City of Corpus Christi contracted Donna Shaver and her staff (with PINS) to provide the turtle monitoring from the South Jetty of Packery Channel to the National Seashore. The City of Corpus Christi is billed for the cost of these services, roughly $31,648.18. - One portion of this program involves patrolling for turtles from March 15th- Sept. 30th between MM 62 and the north Packery Channel Jetty; costs for this portion for $34,200.00. - The monitoring portion of this program involves monitoring all of the equipment operating on the beach between March 15th- Sept. 30th. This portion of the program costs $27,400.00. The UTSMI staff will begin on March 15, 2010 and continue through September 30, 2010. UTMSI will provide monitoring of the Gulf of Mexico beaches from the North Jetty of Packery Channel to the North boundary of the City of Corpus Christi city limits. With the approval of this interlocal agreement with UTSMI, the Beach Operations Division will be able to save approximately $21,000.00 annually. Page 1 of 1 RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT, IN THE AMOUNT OF $10,000, WITH THE UNIVERSITY OF TEXAS MARINE SCIENCE INSTITUTE (UTMSI), FOR UTMSI TO PROVIDE MONITORING OF THE GULF OF MEXICO BEACHES FROM THE NORTH JETTY OF PACKERY CHANNEL TO THE CITY OF CORPUS CHRISTI CITY LIMITS FOR TURTLES DURING SEA TURTLE NESTING SEASON, MARCH 15 TO SEPTEMBER 30. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. The City Manager or designee is authorized to execute an Interlocal Cooperation Agreement in the amount of $10,000 with the University of Texas Marine Science Institute (UTMSI) to provide for the monitoring of the Gulf of Mexico Beaches from the North Jetty of Packery Channel to the City of Corpus Christi city limits during sea turtle nesting season, March 15 to September 30. A copy of the Agreement is on file in the City Secretary's Office and a copy is attached. ATTEST: Armando Chapa City Secretary APPROVED: March 4, 2010 Lisa Ag it r, Interim City Attorney CITY OF CORPUS CHRISTI Joe Adame Mayor Corpus Christi, Texas of ,2010 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 5 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 03/09/10 AGENDA ITEM: A. Resolution authorizing the City Manager or his designee to accept a grant in the amount of $15,000 from the Texas Department of State Health Services for funding eligible under the Governor's Advisory Council on Physical Fitness (GACPF) and to execute all related documents. B. Ordinance appropriating $15,000 from the Texas Department of State Health Services funds in the No. 1071 Community Enrichment Fund, to be used for encouraging, promoting and enhancing healthy living though organized sports, events, diet and everyday activity all with a strong emphasis on using our natural resources. ISSUE: The City of Corpus Christi has been awarded a $15,000 grant as part of Phase! of the Mayor's Fitness Council to encourage, promote and enhance healthy living in Corpus Christi. After a six month evaluation, an opportunity for Phase 11 of the grant for $85,000 will be awarded for the September 1, 2010 to August 31, 2011 time period. REQUIRED COUNCIL ACTION: City Council must accept the grant and appropriate the funds. PREVIOUS COUNCIL ACTION: None FUNDING: There is no match required of the grant. Phase 1 of the grant occurs from March 1, 2010 to August 31, 2010. CONCLUSION AND RECOMMENDATION: Staff recommends accepting the grant and appropriating the funds. Angela Rowe, Pride �'Clean City Coordinator Margie C. Rose, Assistant City Manager angelamrc cctexas.com margier@cctexas.com 361- 826 -3673 361 - 826 -3232 Attachments: • None BACKGROUND INFORMATION PURPOSE /MISSION: The purpose of the grant is to develop a committee consisting of individuals representing: Veteran's Wellness, Corporate Initiatives, HealthCare /Medical Professionals, Worksite Wellness, College /University, Disability Networks, Faith Based Partners, Senior Citizen Wellness, Youth /After School Programs, and Community Outreach /Special Events. A liaison from the Governor's Task Force will also serve on the committee. Ex officio members will include Directors from the City /County Health District and Parks & Recreation Department. The mission of the Mayor's Fitness Council is to encourage, promote and enhance healthy living through organized sports, events, diet and everyday activity, all with a strong emphasis on using our natural resources. BACKGROUND: "Concerned about the health of Texans, Governor Perry created the Governor's Advisory Council on Physical Fitness (GACPF) in 2001 to advise him on matters related to physical fitness, sports, health and nutrition education, and exercise. At the suggestion of GACPF members, Governor Perry worked with legislators to pass funding for the development of local physical fitness councils. This legislation directed the Texas Department of State Health Services to annually make $400,000 in general revenue available to provide grants to local mayors' councils for the development and implementation of wellness and fitness programs in communities across the state." Corpus Christi has representation on the GACPF, which laid merit to the grant. This individual has also agreed to assist in the development of the Mayor's Fitness Council. The City of Corpus Christi was notified that we would be a recipient of the award in December 2009. ORGANIZATIONAL STRUCTURE: ADMINISTRATION OF GRANT: Phase I of the grant, in the amount of $15,000, occurs from March 1, 2010 to August 31, 2010 and will be administered on March 1, 2010. A comprehensive resource assessment will be conducted during this time in order to survey obstacles and needs in order to make Corpus Christi a Fit City, this includes a fairly simple "walkability study," in which key areas of Corpus Christi, including Shoreline Drive, are surveyed about the ease of traveling the path whether it be by a person in a wheelchair, a bike rider or a pet owner. Other projects during this timeline include an enhancement and incorporation of the Mayor's Fitness Council at www.pridecc.com and the development of a documentary/video about healthy lifestyles versus inactive lifestyles for medical residents, primary caregivers and local lawmakers. Budget Breakdown: Executive Committee and Working Committees meetings $1,000 Community Outreach $1,500 Venue Marketing $18o Advisory Council Meetings- Communication $625 TRAVEL: best practices of other Mayor's Fitness Council- Austin, TX $500 TRAVEL: best practices of other Mayor's Fitness Council- Houston, TX $500 TRAVEL: best practices of other Mayor's Fitness Council- Abilene, TX $500 Creation of website by local vendor $4,500 Creation of video by local vendor $1,000 Creation of bus bench and outdoor billboard vinyl $2,000 Funding for Mayor's League Challenge $2,000 Printing $200 Advertising $495 15,00 FUTURE FUNDING: After a six month evaluation, Phase II of the proposal for $85,000 will be awarded for the September 1, 2010 to August 31, 2011 time period. During this time, an awareness campaign and heightened plans for Corpus Christians to participate in the Statewide Texas Round Up, which is usually held in April. On March 1, 2011, another six month evaluation of the Mayor's Fitness Council will be conducted. TEXAS DEPARTMENT OF STATE HEALTH SERVICES BRANDON LeBL.ANC. GRANT ADM INISTRATOR Corpus Christi, P.O. Box 149347 Austin, Texas 78714 -9347 1 -888- 963 -7111 TTY: 1- 800 -735 -2989 www.dshs.state.tx.us Congratulations on being awarded a Governor's Advisory Council on Physical Fitness grant for the development and implementation of wellness and fitness programs in your community. Local fitness councils are able to bring together key members of the community to identify local solutions that are tailored to address the needs of the community. Local fitness councils can also bring together schools, organizations, agencies and businesses that share in the vision of a healthier, more physically active community, and leverage these resources into a larger, more visible community -wide effort. I join the Council in applauding you for taking the first step to make regular exercise and good nutrition an important priority in your community. By getting active and making healthy choices, we can reduce the numbers of Texans living with type 2 diabetes, obesity, heart disease, as well as many other chronic diseases, and help make Texas the fittest state in the Nation. Congratulations on your efforts. I know the Council looks forward to working closely with you, and I wish you success in combating obesity and sedentary lifestyles in your communities. Sincerely, randon Le Department of State Health Services Page 1 of 2 RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ACCEPT A GRANT IN THE AMOUNT OF $15,000 FROM THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES FOR FUNDING ELIGIBLE UNDER THE GOVERNOR'S ADVISORY COUNCIL ON PHYSICAL FITNESS (GACPF) AND TO EXECUTE ALL RELATED DOCUMENTS. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager or his designee is authorized to accept a grant in the amount of $15,000 from the Texas Department of State Health Services for funding eligible under the Governor's Advisory Council on Physical Fitness (GACPF) and to execute all related documents. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Joe Adame City Secretary Mayor Approved as to form: February 22, 2010 Lisa Agui(ai, Interim City Attorney H: \LEG- DIR \Lisa12010 Resolutions \Grant.doc Corpus Christi, Texas of , 2009 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon H: \LEG- DIR \Lisa\2010 Resolutions \Grant.doc Page 2 of 2 Page 1 of 1 ORDINANCE APPROPRIATING $15,000 FROM THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES FUNDS IN THE NO. 1071 COMMUNITY ENRICHMENT FUND, TO BE USED FOR ENCOURAGING, PROMOTING AND ENHANCING HEALTHY LIVING THOUGH ORGANIZED SPORTS, EVENTS, DIET AND EVERYDAY ACTIVITY ALL WITH A STRONG EMPHASIS ON USING OUR NATURAL RESOURCES; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $15,000 grant from the Texas Department of State Health Services is appropriated in the No. 1071 Community Enrichment Fund to be used for encouraging, promoting and enhancing healthy living through organized sports, events, diet and everyday activity, all with a strong emphasis on using natural resources. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the day of , 2010. ATTEST: Armando Chapa City Secretary Approved: February 22, 2010 Lisa Aguil , Interim City Attorney THE CITY OF CORPUS CHRISTI Joe Adame Mayor Corpus Christi, Texas Day of , 2010 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: 1 /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 6 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: March 9, 2010 AGENDA ITEM: A. Resolution authorizing the City Manager or his designee to execute an agreement with Dr. William Burgin, Jr., to serve as the local Health Authority for the Public Health District. B. Resolution authorizing the City Manager or his designee to execute an agreement with Dr. Colette Simon to serve as the alternate local Health Authority for the Public Health District. ISSUE: The Reformed Cooperative Agreement, which was approved April 21, 2009, stipulated the City of Corpus Christi and the County of Nueces would jointly fund a local Health Authority. REQUIRED COUNCIL ACTION: Council Action is required to execute a Professional Service Agreement for a local Health Authority. PREVIOUS COUNCIL ACTION: Council approved Dr. Colette Simon as the alternate local Health Authority with a Compensation Agreement on January 24, 2006. On October 11, 2005 Council amended the Professional Service Agreement with Dr. William Burgin, Jr., M.D. for additional compensation to the agreement. On December 14, 2004, Council authorized the City Manager to appoint a local Health Authority and execute a Compensation Agreement and also a Professional Service Agreement with Dr. Colette Simon as the alternate local Health Authority. CONCLUSION AND RECOMMENDATION: Staff recommends City Council execute a Professional Services Agreement with Dr. William Burgin, Jr., M.D. as the local Health Authority and Dr. Colette Simon as alternate local Health Authority. Margie . Rose Assistant City Manager ma roier(@,cctexas.com 361.826.3232 Attachments BACKGROUND INFORMATION On April 21, 2009 City Council approved a Reformed Cooperative Agreement. This agreement stipulated that the City of Corpus Christi and the County of Nueces would jointly fund a local Health Authority. The monthly fees in this agreement will be paid 50% City and 50% County. The City will pay the entire amount monthly and request a reimbursement from the County. The County of Nueces approved this agreement during their March 3, 2010 Commissioner's Court meeting. A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT WITH DR. WILLIAM BURGIN, JR., TO SERVE AS THE LOCAL HEALTH AUTHORITY FOR THE PUBLIC HEALTH DISTRICT. 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 execute an agreement with Dr. William Burgin, Jr., to serve as the local Health Authority for the Corpus Christi - Nueces County Public Health District. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: March 1, 2010 / Elizabeth R. Hundley Assistant City Attorney for the City Attorney EHres258.doc t6i‘C-ffet:1 Joe Adame Mayor Corpus Christi, Texas day of , 2010 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 EHres258.doc A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT WITH DR. COLETTE SIMON TO SERVE AS THE ALTERNATE LOCAL HEALTH AUTHORITY FOR THE PUBLIC HEALTH DISTRICT. 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 execute an agreement with Dr. Colette Simon to serve as the alternate local Health Authority for the Corpus Christi - Nueces County Public Health District. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: March 1, 2010 /gin_ t 1'1 ;e—a Elizabeth R. Hundley Assistant City Attorney for the City Attorney EHres259.doc Joe Adame Mayor Corpus Christi, Texas day of , 2010 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 EHres259.doc 7 AGENDA MEMORANDUM City Council Action Date: March 9, 2010 SUBJECT: Mary Rhodes Pipeline Cathodic Protection 2010 Project No. 8679 AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute a construction contract with Holloman, Corporation of Converse, Texas in the amount of $246,906.00 for Mary Rhodes Pipeline Cathodic Protection 2010 for the Total Base Bid. (Water Fund Capital Outlay) ISSUE: Cathodic protection systems are most commonly used to protect steel, water or fuel pipelines and storage tanks, steel pier piles, ships, offshore oil platforms and onshore oil well casings. Cathodic protection is a technique to control the corrosion of a metal surface by introducing "sacrificial" anodes with more "active" charges than the metal of the structure (pipeline). The metal pipeline is polarized to create a uniform potential to halt the corrosion reaction and the anodes will corrode until they eventually must be replaced. Cathodic protection can be also an effective method of preventing stress corrosion cracking. This project will provide for the installation of cathodic protection system upgrades at 26 sites along the Mary Rhodes Phase 1 water transmission main. On February 17, 2010, the City received proposals from three (3) bidders (see Exhibit "C" Tabulation of Bids). The bids range from $242,147.00 to $280,764.50. The estimated cost of construction is $299,500.00. The apparent low bidder failed to properly acknowledge the Addendum No. 2 and submit the correct proposal form per Addendum No. 2, resulting in a non - responsive bid. The bid for the apparent low bidder has been rejected in accordance with City General Provision B- 2-14 as a non - responsive bid. The City's consultant, Russell Corrosion Consultants and City staff recommend a contract be awarded to the lowest responsible bidder, Holloman, Corporation in the amount of $246,906.00 for Mary Rhodes Pipeline Cathodic Protection for the Total Base Bid. FUNDING: Funding is available from the Water Operating Fund FY 2010 Capital Outlay. RECOMMENDATION: Staff recommends approval of the motion as presented. Gustav Gonzalez, Director of Water Services 361 -826 -1874 qustavono�a cctexas.com petean@cctexas.com H:\HOME\ICeIlyO \GEN\WATER\Mary Rhodes \8679 - Mary Rhodes Pipeline Cathodic Protection 2010\ Construction\2 AGENDA MEMO.doc Pete Anaya, P.E. Director of Engineering Services 361- 826 -3781 Additional Support Material: Exhibit "A" Background Information Exhibit "B" Prior Actions Exhibit "C" Bid Tabulation Exhibit "D" Project Budget Exhibit "E" Location Map H:\HOME\KellyO \GEN1WATER\Mary Rhodes \8679- Mary Rhodes Pipeline Cathodic Protection 2010 \Construction\2 AGENDA MEMO.doc AGENDA BACKGROUND INFORMATION SUBJECT: Mary Rhodes Pipeline Cathodic Protection 2010 Project No. 8679 PROJECT DESCRIPTION: This project consists of a Total Base Bid for the installation of cathodic protection system upgrades at 26 sites along the Mary Rhodes water transmission main, in accordance with the plans, specifications and contract documents. The Total Base Bid includes the replacement of test wires at existing test stations, installation of anode groundbed at test stations, trench safety for excavation for pair of test leads connection to pipe, dewatering per excavation for pair of existing test station leads connection to pipe, and mobilization and demobilization for dewatering. CONTRACT TERMS: The project is estimated to require 150 calendar days, with completion anticipated in August/September 2010. PROJECT BACKGROUND: The Mary Rhodes Pipeline was constructed in 1997/1998. The first installation of cathodic protection was completed under the original construction contract, administered by the Port of Corpus Christi, for the Mary Rhodes Pipeline and was designed to protect the portion of the pipeline under the Guadalupe River and under the Barge Canal. Here, there were many other existing pipelines with the impressed current type of cathodic protection systems. The normal design life for a cathodic protection site is 20 -30 years. Monitoring surveys of the corrosion protection system are typical at intervals of 1 -3 years. These monitoring surveys check the condition of the anodes and other components of the test station locations as well as the soil potentials to determine what maintenance, repairs and /or modifications may be needed on the existing components and whether new cathodic protection locations need to be addressed. The next replacement/upgrade is anticipated in 2013. Over time, at some locations along the pipeline, the electrical potential within the soil along the pipeline changes to such as extent that a new anode bed is needed. The benefit of the expanded system is to provide protection in corroding areas along the Mary Rhodes Pipeline. TCEQ requirements consist of the contractor to report on the area of work sites that will require controls to prevent silt and other debris from migrating off the site during wet weather. If the disturbed surface area per the contractors plan will not disturb a total surface area of less than 5 acres, then the contractor will send TCEQ the Notice of Intent (NOI form) prior to beginning work on any of the sites. The Contract for Professional Services for this project was awarded to Russell Corrosion Consultants, Inc in May2009. Design, bid and construction phase services and acceptance testing /annual survey phases are complete. The design services included the necessary repairs and additions at the 17 locations identified in a survey report conducted in 2005. The 2 new locations and 7 existing locations were identified in the 2008 survey report for the corrosion protection systems for the Mary Rhodes Pipeline. In conjunction with EXHIBIT "A" Page 1 of 2 H:\ iOME \Kelly° \GEN\WATER\Mary Rhodes \8679- Mary Rhoda Pipeline Cathodic Protection 2010 \ Construction \3 AGENDA BACKGROUND.doc construction phase (acceptance testing) services for the new and repaired test stations, periodic monitoring survey of the entire corrosion protection system on the Mary Rhodes Pipeline will be conducted. The project has bid and approval of a construction contract to complete the project is required. EXHIBIT "A" Page 2 of 2 H:\ HOME \Kelly° \GEN\ WATER \Mary Rhodes \6679 - Mary Rhodes Pipeline Cathodic Protection 2010 \Constntction\3 AGENDA BACKGROUND.doc PRIOR ACTIONS SUBJECT: Mary Rhodes Pipeline Cathodic Protection 2010 Project No. 8679 PRIOR COUNCIL ACTION: 1 A. July 28, 2009 — Ordinance adopting the City of Corpus Christi budget for the ensuing Fiscal Year beginning August 1, 2009; to be filed with the County Clerk; appropriating monies as provided in the budget. (Ord. 028252) B. July 28, 2009 — Ordinance to ratify increase of $2,971,452 in Property Tax Revenues from last year's Operating Budget as reflected in the FY 2009 -2010 Operating Budget. (Ord. 028253) 2. May 12, 2009 — Motion authorizing the City Manager or his designee to execute a Contract for Professional Services with Russell Corrosion Consultants Inc. of Simpsonville, Maryland, in the amount of $126,550.10 for the Mary Rhodes Pipeline Cathodic Protection 2009 project. (M2009 -124) PRIOR ADMINISTRATIVE ACTION: 1. March 24, 2008 — Administrative approval of Small Agreement for Architect/Engineer Consultant Services in the amount of $48,424.17 with Russell Corrosion Consultants Inc. for the Mary Rhodes Pipeline Corrosion Monitoring Survey 2008 (Project No. 8626) for periodic corrosion monitoring survey. 2. July 22, 2009 — Administrative approval of Amendment No. 1, a zero (0) fee amendment, to the Contract for Professional Services with Russell Corrosion Consultants, Inc. of Simpsonville, Maryland for the Mary Rhodes Pipeline Cathodic Protection 2009 project. EXHIBIT "B" Page 1 of 1 Pipe Line orum Way 1, TX 76140 AMOUNT o 67, $46,147.50 0 M N N Vi O op )f) N 49 o o 0 49 0 d 0 4 0 o Q. 49 0 Q? 4 0 CO N. CO N 44 UNIT PRICE 1 ' fH N O) 49 N O) t9 0 o N 69 0 o e9 eta 0 o IL) 69 0 It 49 $2,978.00 Holloman, Corp. 13730 IH 10 East Converse, TX 78109 AMOUNT f $62,398.00 o G. CO $94,822.00 0 0 V) o rN ` $2,851.00 0 CO $7,550.00 0 4 is O O) 10 UNIT PRICE oo v o) co to 0 o 6 to 49 0 r- r- $1,954.00 $2,851.00 $2,851.00 O '� 6r- O co ri 69 Corrpro Company 7000 B Hollister Houston, TX 77040 AMOUNT $51,702.00 o M 49 o co to 49 $13,383.00 00 o 0 $3,292.00, N 4 49 1$242,147.00 UNIT PRICE o M 69 00 co 4V9 00 M 0 K co EA 0 q O 49 00 NN4 49 0 49 $4,852.00 uA i t: reoruary I r, cu w I MARY RHODES PIPELINE CATHODIC PROTECTION Project No. 8679 0 a) .- O DESCRIPTION Replace test wires at existing test stations, complete and in place per each site Install CMS-6 anode groundbed and test stations, complete and in place per each site Install anode groundbed at existing test stations, complete and in place per each site Trench safety for excavation for pair of test leads connection to pipe (5' to 8' depth), complete and in olace per each site Trench safety for excavation for pair of test leads connection to pipe (8' to 11' depth), complete and in place oer each site Trench safety for excavation for pair of test leads connection to pipe (> 11' depth), complete and in olace oer each site Dewatering per excavation for pair of existing test station leads connection to pipe, complete and in place per day, per each site AL BASE BID (Bid Items 1-8) Wr- I- N VI •f to 0 6 c 0 0 N C 7 U c N E 0 a a) w co G) O L ID N W co 0 N H O 0 co .c co (0 0 c .0 0 O c O a) C d o O E .c co C i IDO 0 N W 0 8 o) 'p (0 • L u� d 0 O • a 32 0 L (6 d f0 N N ti H N PROJECT BUDGET MARY RHODES PIPELINE CATHODIC PROTECTION Project No. 8679 March 9, 2010 FUNDS AVAILABLE: Water Operating Fund FY 2010 $293,670.11 * Water Operating Fund FY 2009 $126,550.10 $420,220.21 FUNDS REQUIRED: Construction (Holloman, Corporation) $246,906.00 Contingencies (10 %) 24,690.60 * Consultant (Russell Corrosion Consultants, Inc.) 126,550.10 Reimbursements 17,283.42 Misc. (Printing, Advertising, etc.) 4,790.09 Total $420,220.21 FUNDS REMAINING $0.00 * Consultant contract was awarded under Water Operating Budget FY 2009 Fite : \ Mproject \councilexhibits \exh8679b.dwg CHOKE CANYON RESERVOIR LAKE TEXANA / / / / / / / / BLOOMINGTON THREE ERS GEORGE WEST PROJECT #8679 LAKE CORPUS CHRISTI J MARY RHODES // PIPELINE WOODSBORO RAT ON STEVENS WATER PLANT 37 CORPUS CHRISTI LOCATION MAP Not To Scale Q EXHIBIT "E" MARY RHODES PIPELINE CATHODIC PROTECTION CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 18 -02 -2010 =OW I■111 NNW MID ■■ 8 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: March 9, 2010 AGENDA ITEM: Motion authorizing the City Manager or designee to execute a Real Estate Sales Contract with Corpus Christi Independent School District in the amount of $72,600 plus $1,300 in closing costs for the purchase of fee simple property rights to 2.42 acres of vacant land owned by CCISD on Paul Jones Avenue, north of and adjacent to the City's South Guth Ball Field complex, for recreational and other public purposes in connection with the South Guth Ball Field Relocation Project, #3337. ISSUE: The City acquired 37 acres for construction of the new South Guth Bali Field Complex located on Paul Jones Avenue. Corpus Christi Independent School District (CCISD) currently owns two tracts of vacant land totaling 12.82 acres on Paul Jones Avenue. The tracts are separated by a forty (40) foot wide unimproved street which will eventually become the Williams Drive extension to Paul Jones Avenue. The smaller tract, containing 2.42 acres, abuts the City's 37 acre tract. This would be an ideal tract of land for additional recreational activities which would complement the ball fields. The City has approached CCISD to purchase this tract and they have agreed to sell. An executed real estate sales contract in the amount of $72,600 has been received from CCISD which requires approval by City Council. Authorization is needed to enter into the contract and permit the City Manager or his designee to execute all instruments in connection with this acquisition. FUNDING: Park & Recreation Dept. Community Enrichment Funds Fund Name Account No. Fund No. Org. No. Project No. Amount Park & Recreation Dept. Community Enrichment Fund 21420 4720 00000 3434 $ 1,200.00 21377 4720 00000 3434 $ 5,111.92 Id 21452 4720 . 00000 3434 $ 1,200.00 ,. 21617 4720 00000 3434 $ 6,294.76 II 21619 4720 00000 3434 $ 28,055.01 21300 4720 00000 3434 $ 32,038.31 Total $73,900.00 STAFF RECOMMENDATION: Approval of the motion as presented. ,.G. a Pete Anaya Director of Engineering 826 -3781 petean @cctexas.com Stacie Talbert Interim Director of Park and Recreation 826 -3464 staciet @cctexas.com Additional Support Material: Exhibit A Background Information Exhibit B Vicinity Map Exhibit C Real Estate Contract Summary HAHOME \EUSEBIOG \GEN\Aaenda Items \Paul Jones ( Williams Dr. Park\Agenda Memorandum.doc BACKGROUND INFORMATION SUBJECT: Paul Jones at Williams Drive Park ( #3434) Acquisition of 2.42 acres of land from CCISD The Corpus Christi Independent School District ( CCISD) owns 12.82 acres of vacant land along Paul Jones Avenue, south of South Padre Island Drive. This was the site of the former Sunshine - Aberdeen School tract. The 12.82 acres is separated into two tracts by a forty (40) foot wide un- improved Williams Drive right -of -way. The southern most tract, being 2.42 acres, abuts the City's newly acquired South Guth Ball Field Complex as shown on the attached Exhibit B. The subject tract presents an opportunity to develop an adjoining park facility to complement the ball fields and provide additional recreational activities. CCISD has agreed to sell the 2.42 acre tract to the City at the appraised value of $72,900 or $30,000 per acre. Parcel Valuation: The City previously purchased .0947acres (4,124 s.f.) of land along the subject tract in June 2009 for use in the Bay Trail, Phase 3 Hike & Bike Trails. A twenty - five (25) foot wide strip was needed for the bike trail. On January, 2009 the land was appraised by Thomas Dorsey, MAI at the amount of $30,000 per acre. Since land values in the area have been stable, the appraised value was used to present an offer to CCISD . A written sales contract in the amount of $72,600 for 2.42 acres was presented to CCISD which was accepted and approved by their Board of Trustees. The signed sales contract has been received back from CCISD which now requires approval by City Council and execution by the City Manager or designee. The contract will be escrowed at San Jacinto Title Company as requested by CCISD. Funding: On September 15, 2009, the City Council approved $5,044,754 for construction of the new South Guth Ball Fields. Included in the project budget is a line item for a 5% contingency in the amount of $227,786. City staff recommends funding the park acquisition from the 5% contingency amount upon completion of the project. Park and Recreation Community Enrichment Funds will be used in the interim to fund the acquisition. Reimbursement of these funds will come from the unused portion of the 5% contingency. PRIOR COUNCIL ACTION: 1. September 25, 2007 - Public hearing regarding South Guth Park land transfer to Texas A &M University- Corpus Christi for university expansion. 2. September 25, 2007 - Resolution determining that there is no feasible and prudent alternative to the using of South Guth Park by the Texas A &M University System for the expansion of Texas A &M University- Corpus Christi campus and further determining that all reasonable planning has occurred to minimize harm to South Guth Park resulting from such use or taking. (Resolution No. 027432) 3. October 16, 2007 - Ordinance authorizing the City Manager to execute a Declaration of Gift and Agreement between the City of Corpus Christi, Texas and the Board of Regents of the Texas A &M- University System for the Benefit of Texas EXHIBIT A Page 1 of 3 A &M University- Corpus Christi relating to the conveyance of 140.39 acres of land in the vicinity of Ennis Joslin Road and Nile Drive, including South Guth park; and authorizing the City Manager to take all further actions to effect the gift and conveyance. (Ordinance No. 027451) 4. December 11, 2007 — Resolution determining a public necessity to acquire fee simple title to the surface estate only to three parcels of land for a ball field relocation project known as the South Guth Park Ball Field Relocation Project, from the owners William H. Shireman, et al (Parcel 1), Vickers Family Trust (Parcel 2), and Noy Shockley, et ux (Parcel 3), for the public purpose and use as a ball field park and for other related park purposes; and authorizing the City Manager and the City Attorney to acquire the subject parcels by means of negotiations or exercise of the City's power of eminent domain. (Resolution No. 027521) 5. December 18, 2007 - Motion authorizing the City Manager or his designee to execute a Real Estate Sales Contract with William H. Shireman, Jr., et al in the amount of $295,000 plus $3,500 in closing costs for Parcel 1 described as 29.018 acres out of Lot 11 and the Southeast one -half of Lot 12, Section 31, Flour Bluff & Encinal Farm & Garden Tracts located on Paul Jones Avenue necessary for the South Guth Park Ball Field Relocation Project (Motion No. M2007 -327). Mav 20, 2008 — Ordinance authorizing the issuance tax notes in the principal amount of $22,260,000; approving sale of tax notes, providing for the levy, assessment and collection of a tax sufficient to pay the interest on said notes and to create a sinking fund for the payment of the principal thereof; and ordaining other matters related thereto (Ordinance No. 027708). (Schedule 1 of the Note Purchase Agreement lists a total of $7,500,000 as being for the South Guth Ball Fields Relocation Project.) 7. November 11, 2008 - Motion authorizing the City Manager or designee to execute a Real Estate Sales Contract with Noy R. Shockley and wife, Betty Shockley in the amount of $130,000 plus $1,900 in closing costs and an additional amount of $22,500 for relocation assistance to cover moving costs and incidental expenses in connection with a replacement dwelling, all for the purchase of fee simple property rights to Parcel 3, described as "Peary Place Annex B" (0.471 acres), with the street address of 1901 Paul Jones Ave., necessary for South Guth Ball Field Relocation (Motion No. M2008 -288). 8. January 20, 2009 — Motion authorizing the City Manager, or his designee, to execute Amendment No. 1 to an Architectural Services Contract with ArchitecTKO (Terry K. Orf) of Corpus Christi, Texas in the amount of $173,400 for a restated fee of $181,620 for the South Guth Ball Fields relocation to a tract located on Paul Jones Avenue for design, bid, construction phase services (Motion No. M2009 -016). 9. April 21, 2009 — Motion authorizing payment of the Special Commissioners Award in the amount of $380,000 in connection with condemnation of Parcel 2, owned by Vickers Family Trust, for fee simple property rights to 7.197 acres of land located along the west side of Paul Jones Avenue, approximately one - quarter mile EXHIBIT A Page 2 of 3 southeast of South Padre Island Drive, necessary for the South Guth Ball Field Relocation Project and for other related public purposes. (Motion No. 2009 -100) 10. September 15, 2009 — Motion authorizing the City Manager, or his designee, to execute a construction contract with Barcom Commercial, Inc., of Corpus Christi, Texas in the amount of $5,044,754 for the South Guth Ball Field Relocation to a tract located on Paul Jones Avenue, for the Base Bid, Additive Alternate No. 1, Additive Alternate No. 2, and Deductive Alternate No. 1. (Motion No. 2009 -257) PRIOR ADMINISTRATIVE ACTION: 1 July 17, 2007 - City Council Presentation by City Manager George K. Noe and Dr. Flavius C. Killebrew, President of Texas A &M University- Corpus Christi on the Texas A &M- Corpus Christi Expansion project. 2. July 12, 2007 — Administrative award of a wetlands determination, Phase 1 environmental site assessment and threatened /endangered species survey in the amount of $23,960 by LNV Engineering of Corpus Christi, Texas. 3. December 4, 2007 — Administrative award of an architectural contract to Terry K. Orf, ArchitecTKO, of Corpus Christi, Texas in the amount of $8,220 for study of project scope, economic and technical evaluation of the South Guth Park Ball Field Relocation project. 4. December 7, 2007 — Administrative award of a land surveying contract to Frontier Surveying of Corpus Christi, Texas in the amount of $19,900 for land acquisition boundary survey. 5. May 1, 2009 — Administrative award of a Testing Agreement to Rock Engineering & Testing Laboratory of Corpus Christi, Texas in the amount of $7,400 for the South Guth Park Ball Field Relocation project. H: \HOME \EUSEBIOG \GEN\Ngenda Items \Paul Jones Q Williams Dr. Park \Background.doc EXHIBIT A Page 3 of 3 File : \ Mproject\ councilexhibits \exh3434LAND.dwg PROJECT #3434 VICINITY MAP NOT TO SCALE EXHIBIT B PAUL JONES AT WILLIAMS DR. PARK CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 2-12-2010 6ti - - - wv REAL ESTATE CONTRACT SUMMARY Project No. 3434 Paul Jones at Williams Drive Park, 2.42 acres This Real Estate Sales Contract is entered into by the Corpus Christi Independent School District ( "SELLER ") and the City of Corpus Christi ( "BUYER ") subject to the following terms and conditions: 1. Property — 2.42 acres (vacant land) out of Lot 12, Section 31, Flour Bluff and Encinal Farm and Garden Tracts, Nueces County, Texas, as described by metes and bounds description attached to the contract. 2. Purchase Price - $72,600 cash. 3. Title Insurance: Seller to provide title insurance at Buyer's expense. 4. Special Warranty Deed and Closing Costs: Seller will deliver a good and sufficient Special Warranty Deed that conveys indefeasible title to the property. The property is conveyed by Seller "as is, where -is, and with any and all faults ". 5. Property Taxes: All taxes, if any, are to be paid by Seller, up to and including the year 2009. Taxes for 2010, if any, will be prorated between Buyer and Seller. 6. Earnest Money: Buyer agrees to deposit $500 Earnest Money at a Title Company, which Seller may keep as liquidated damages should Buyer fail to consummate contract as specified, or Seller may seek to enforce specific performance of contract. 7. Restrictions on Title: Buyer accepts title subject to all outstanding restrictive covenants, use restrictions and zoning and regulatory ordinances. 8. Time for Performance: This contract is to be closed on or before 90 days from the effective date of the contract. Seller acknowledges that Seller has read the agreement, and it is not binding until approved by the City Council of the City of Corpus Christi and signed by the City Manager within 30 days from the effective date of this contract. 9. Survives Closing: The contract will survive the closing of the sale and delivery of the Special Warranty Deed and other conveyance documents. 10. 60 -Day Inspection Period: Buyer shall have sixty days from the date of the contract to perform its due diligence studies on the property. Buyer can void the contract at its discretion if Buyer finds the property unacceptable in any form. EXHIBIT C 1 OF 2 11. Broker's Commission: All Real Estate Commissions, if applicable, will be paid by Seller. 12. Possession: At closing, the property will be conveyed free of any rights of possession of any third parties, except for valid easements of record. Any possession prior to closing will necessitate a separate written lease agreement between the parties. 13. Seller's Representations and Warranties: Seller represents that it has absolute and unrestricted right, power, and authority to execute and deliver this contract along with the documents to be executed and delivered by Seller in connection with this contract. Seller has no knowledge of any pending litigation, condemnation, or assessment affecting the property. Seller has no knowledge that the property contains hazardous materials, underground tanks, or is not in full compliance with all Environmental laws. To the best of Seller's knowledge Seller has full and complete fee simple title to the property. No person, corporation or other entity has any right or option to the property. Seller has not received any notice from any governmental agency regarding the property's non- compliance with applicable laws, ordinances, regulations, statutes, rules and restrictions relating to the property. 14. Mineral Reservation: The sale of the property is without oil, gas, or mineral rights. 15. Essential: Time is of the essence in closing this transaction. 16. Effective Date: The effective date of this contract is the date in which the contract is signed by Buyer. 17. Counterparts: Multiple original copies of the contract may be executed and the original copies assembled together shall constitute one agreement H: \HOME\EUSEBIOG \GENWgenda Items \Paul Jones @ Williams Dr. Park \Contract Summary.doc EXHIBIT C 2 OF 2 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: March 9, 2010 AGENDA ITEM: Ordinance amending Section 33 -16, Code of Ordinances, City of Corpus Christi to allow parking on the Seawall Parking Lot on Windward Drive when any portion of beach seaward of the concrete portion of the Padre Island Seawall is closed to vehicular traffic; providing for penalties; providing for severance; providing for publication; and declaring an emergency. ISSUE: On May 20, 2008, City Council approved an ordinance establishing a curfew for the Seawall Parking Lot on Windward Drive from 12:00 am to 6:00 am. In a letter dated May 22, 2008, the General Land Office (GLO) stated its support of the curfew under two conditions including one stating that vehicular access seaward of the seawall is not restricted or altered. On February 23, 2010 City Council approved an ordinance to restrict vehicular traffic on the Gulf Beach seaward of the Padre Island seawall. An amendment to the Ordinance establishing the curfew must be approved to meet the conditions of GLO's support of the curfew. REQUIRED COUNCIL ACTION: In order to meet the GLO's conditions for supporting the curfew for the Seawall Parking Lot on Windward Drive, City Council must approve the amendment the ordinance establishing the curfew to allow a person to utilize the parking lot outside of the established curfew when any portion of the Gulf Beach seaward of the seawall is closed to vehicular traffic. PREVIOUS COUNCIL ACTION: May 20, 2008: Approved an ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 33 to prohibit use of or presence in Seawall Parking Lot on Windward Drive from midnight to 6 am; providing for penalties; providing for severance; and providing for publication. February 23, 2010: Approved an ordinance repealing Ordinance 027971, passed and approved on December 9, 2008, and amending the Code of Ordinances, City of Corpus Christi, Chapter 10, Beachfront Management and Construction, to restrict vehicular traffic on the Gulf Beach Seaward of portions of the concrete segment of the Padre Island Seawall and establishing a vehicle free area when the distance between the toe of the Seawall to the Mean High Tide Line is Tess than 150 feet in width; allowing the operation of vehicles within 50 feet of the water's edge when parking and when soft -sand conditions prevent the safe transit of vehicles on the upper beach; allowing two -way vehicular traffic on the Gulf Beach between the northern end of the Seawall and Padre Balli Park (Beach Access Road #4); establishing a pedestrian safe area in the area seaward of 50 feet from the Mean High Tide Line between the northern end of the concrete Seawall and the Packery Channel Jetty; committing the City Council to undertake efforts to restore and maintain the beach in front of the Seawall to a minimum width of 200 feet; adding an appendix to the City of Corpus Christi, Texas, dune Protection and Beach Access Regulations to show the approximate location of bollards to be installed on the beach; providing for penalties; providing for severance; providing for publication; and providing a delayed effective date. CONCLUSION AND RECOMMENDATION: Staff recommends City Council Ordinance amend Section 33 -16, Code of Ordinances, City of Corpus Christi to allow parking on the Seawall Parking Lot on Windward Drive when any portion of beach seaward of the concrete portion of the Padre Island Seawall is closed to vehicular traffic; providing for penalties; providing for severance; providing for publication; and declaring an emergency. ee. Stacie A. Talbert Interim Director, Parks and Recreation staciet @cctexas.com (361)826 -3476 Attachments: Background Information May 22, 2008 from General Land Office to Mr. Johnny French BACKGROUND INFORMATION In May 2008 a curfew was established for Seawall Parking Lot on Windward Drive as a result of citizen complaints about loitering, perceived illegal activities, littering and safety concerns at local hotels after midnight. The curfew prohibits the use of or presence in the parking lot between midnight and 6:00 am. When the curfew was established for Seawall Parking Lot on Windward Drive in May 2008, the General Land Office supported the action under the following conditions: 1. The permanent roadway easements within 1,000 feet of each end of the Seawall affording vehicles access from the nearest public road to the beach must be maintained and remain open. 2. Vehicular access may not be restricted or altered seaward of the seawall. Due to erosion and safety concerns, on February 23, 2010 the City Council approved an ordinance to restrict vehicular traffic on the Gulf Beach seaward of the Padre Island seawall. An amendment to the Ordinance establishing the curfew must be approved to meet the conditions of GLO's support of the curfew. T E X .i May 22, 2008 Mr. Johnny French jfrench @stx.rr.com Dear Mr. French: GENERAL L .i )\ N D 0 :lam F :E c IE, JERRY PATTERSON, COMMISSIONER Thank you for your May 16, 2008 e-mail regarding the City of Corpus Christi implementing a daily midnight -to -6:00 am curfew for the Windward Drive parking lot adjacent to and north of the Holiday Inn on North Padre Island. During a January 22, 2008 initial discussion between the General Land Office (GLO) Beach/Dune Team and the City of Corpus Christi, the curfew was proposed because the City Parks and Recreation Department staff received reports of loitering and perceived illegal activities taking place in the parking lot, and there were concerns for the safety of guests staying at the adjacent and nearby hotels and for the public in general after midnight. The GLO has; no objections to the proposed daily curfew, which projects to enhance public safety, under the following conditions: • The permanent roadway easements within 1000 ft of each end of the seawall affording vehicles access from the nearest public road to the beach must be maintained and remain open. • Vehicular access may not be restricted or altered seaward of the seawall.' If you have any further questions or comments, please contact me at (512) 463 -9215 by phone or by e- mail at eddie.fisherna,glo.state.tx.us. You may also contact Rob Conti, P.G., by phone at (512) 463 -9311 or by e-mail at rob.conti @glo.state.tx.us. Eddie Fisher Director of Coastal Protection Coastal Resources Program Area I Texas Natural Resources §61.017 (c) (1) ( C ) Stephen E Austin Building • 1700 North Congress Avenue • Austin, Texas 78701 -1495 Post Office Box 12873 • Austin, Texas 78711-2873 512 -463 -5001 • 800 - 998 -4GLO www.glo.state.tx.us ttintlitttdiltttil r��r���r��r��rr slur rrlIuruUUMIalIrrlhr ruII■Iur��hrarur.IIII rruIra1111M IIIrr.Irr MI MI MI NI MINI fnumulhIUIIuIuIIlI ■ILI■IITIN ; MIS E IMEN ..1:111111111± �_allill ■+E■r11rrrrRrrr■ UNIFE III■rmr2rrr■Mrrir■r■ 111 11 P 111111 r i MI 1111111111U11 �Ililll 1111_ >IdYd Hive 3dOVd 1 1 11 m v m 111111111 1 11111111111111 III AI Ammo" ► AvrA _'*111,1 * 4 rtki/1�j"fir 14- �*%, :1 ti y�iR rftf r�y {. i7 . if f �r�rftrr Xr� ttfrf���/ff�� }off 6uIIaed paennp Page 1 of 3 ORDINANCE AMENDING SECTION 33 -16, CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, TO ALLOW PARKING ON THE SEAWALL PARKING LOT ON WINDWARD DRIVE WHEN ANY PORTION OF BEACH SEAWARD OF THE CONCRETE PORTION OF THE PADRE ISLAND SEAWALL IS CLOSED TO VEHICULAR TRAFFIC; PROVIDING FOR PENALTIES; PROVIDING FOR SEVERANCE; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Section 33- 16(d), Code of Ordinances, is revised to read as follows: "Sec. 33 -16. Seawall Parking Lot on Windward Drive parking-let-hours of operation. "(a) In this section, Seawall Parking Lot on Windward Drive means the City of Corpus Christi parking lot that is adiacent to the Padre Island concrete seawall, and is located in the 14900 block of Windward Drive. "(b) A person commits an offense if he enters or remains on the Seawall Parking Lot on Windward Drive parking lot -from midnight to 6:00 a.m. "(c) A person commits an offense if he allows a vehicle under his control to remain on the Seawall Parking Lot on Windward Drive from midnight to 6:00 a.m. "(d) It is an affirmative defense to prosecution under this section that the person: "(1) Was a government employee in performance of official duties at the time the person entered or remained on the Seawall Parking Lot on Windward Drive- parking-lot; "(2) Entered or remained on the Seawall Parking Lot on Windward Drive parking lot because of an emergency which affected the physical well- being or property interests of himself or another; or "(3) Entered or remained on the Seawall Parking Lot on Windward Drive parking- let-at the direction of a peace officer. "(4) Entered, remained, or allowed a vehicle under his control to remain on the Seawall Parking Lot on Windward Drive when any portion of the Gulf of Mexico beach seaward of the concrete portion of the Padre Island seawall is closed to vehicular traffic." SEAWALL PARKING LOT CURFEW -- 03042010 Page 2 of 3 SECTION 2. A violation of this ordinance or requirements implemented under this ordinance constitutes an offense punishable under Section 1 -6 of the City Code of Ordinances. SECTION 3. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision of this ordinance be given full force and effect for its purpose. SECTION 4. 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 5. 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 , 2010. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: March 4, 2010 R. Jay Reining First Assistant City Attorney For City Attorney SEAWALL PARKING LOT CURFEW -- 03042010 Joe Adame Mayor Page 3 of 3 Corpus Christi, Texas day of , 2010 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 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 SEAWALL PARKING LOT CURFEW -- 03042010 10 AGENDA MEMORANDUM ITEM: PUBLIC HEARING TO CONSIDER AND FIRST READING OF AN ORDINANCE AMENDING THE COMPREHENSIVE PLAN OF THE CITY OF CORPUS CHRISTI, BY AMENDING THE CORPUS CHRISTI URBAN TRANSPORTATION PLAN (AS ADOPTED BY ORDINANCE 025251, AND AMENDED BY ORDINANCES 026278 AND 026402) AND THE CORPUS CHRISTI FUTURE LAND USE PLAN (AS ADOPTED BY ORDINANCE 026278) FOR THE CITY AND ITS EXTRATERRITORIAL JURISDICTION; ESTABLISHING A UNIFIED FUTURE LAND USE AND TRANSPORTATION PLAN FOR COORDINATION OF LAND USE ZONING SUBDIVISION DEVELOPMENT AND CAPITAL IMPROVEMENTS CONSISTENT WITH THE PUBLIC INTEREST; AMENDING RELATED ELEMENTS OF THE COMPREHENSIVE PLAN OF THE CITY; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. Summary of Proposed Changes: See Attachment 1. Plannin2 Commission's and Staff's Recommendation (January 20, 2010): Approval of the proposed amendments, with a request that staff develop during the next six months, a recommendation concerning a freeway connection or enhance high capacity arterial between the proposed South Loop and SPID Requested Council Action: Approval of Planning Commission and Staffs recommendation for adoption of the plan amendments. Plannin2 Process Summary: April 2009 — In April, Staff was directed to begin the update to the Urban Transportation Plan. The City Charter requires that the Comprehensive Plan elements be updated at least every five years. The Urban Transportation Plan and the Future Land Use elements of the Comprehensive Plan were last adopted on May 24, 2005. Most of the proposed amendments pertain to the City's Urban Transportation Plan, as the map portion of the Future Land Use Plan is routinely amended when City Council rezones property. However, several Future Land Use Plan amendments are included. A summary of draft Transportation Plan amendments is contained in Attachment 1. For a detailed discussion and analysis of Urban Transportation Plan amendments see Attachment 2. Proposed Future Land Use amendments are contained in Attachment 3. June 18, 2009 — Staff presented recommended Urban Transportation Plan Amendments to the MPO (Metropolitan Planning Organization) Technical Advisory Committee for the purpose of gaining MPO input into the plan amendments. The Technical Advisory Committee members did not object to any of the proposed changes except for the deletion of the Compton Road Extension east of Flour Bluff Drive. Staff initially recommended the Compton Road Extension east of Flour Bluff Drive be deleted from the plan since the proposed connection with the SPID frontage road is shown on the current plan too close Comprehensive Plan Amendments Page 3 February 23, 2010 to the SPID off -ramp (within 400 feet to ramp). The MPO Technical Advisory Committee indicated that the plan should still show a connection of Compton Road to SPID but the connection should be moved eastward to a connection that is consistent with TxDOT safety standards. Staff is in agreement with this change and has illustrated the plan amendment on Exhibit 6. The MPO TAC suggested that staff add intersection widening graphics to the plan so that intersection widening at arterial /arterial and arterial /collector intersections is supported by a the Comprehensive Plan. Staff has added the intersection widening graphic to the list of plan changes as illustrated on Exhibit 9. The MPO Transportation Advisory Committee suggested that the planned capacity of the arterial streets should be reviewed as some of the capacities listed may be too low. Staff has reviewed several cities and suggested revisions to the planned capacities of the A -2 Secondary Arterial and A -3 Primary Arterial. July 27, 2009 — Staff presented recommended Urban Transportation Plan changes to the City's TAC (Transportation Advisory Committee) for discussion. September 28, 2009 — Staff presented the Urban Transportation Plan changes to the TAC for action. The TAC recommended the approval of the changes provided a statement is added to the Urban Transportation Plan map indicating that "Widening may be required for streets designated on the City's Pedestrian and Bicycle Plan ". October 2, 2009 — Staff presented the plan changes to the `Bay Area Smart Growth Initiative" (an informal planning group of citizens interested in promoting "Smart Growth ") The Smart Growth Group indicated that they would like to study the existing plan first and possibly conduct a workshop for their organization to formulate recommendations for the Plan. Staff suggested that they provide their input as soon as possible. October 21, 2009 — Staff met with Staff members of the Port of Corpus Christi to discuss plan amendments. October 24, 2009 — Bay Area Smart Growth Initiative Workshop. Initiated by John Kelly of the Bay Area Smart Growth Initiative (BASGI), a workshop was held on October 2, 2009. Those attending included representatives from the Regional Transit Authority, Texas A & M Corpus Christi, the Metropolitan Planning Organization, local developers, engineering consultants, architects and the City. Subsequently, the BASGI indicated that they are not opposed to any of the plan amendments proposed thus far. In addition, the BASGI suggested that the Urban Transportation Plan incorporate a light rail concept map as a potential alternative to traditional road improvement projects and a high speed water transportation routing for connectivity across the bay. December 9, 2009 — Planning Commission discussion. Comprehensive Plan Amendments Page 4 February 23, 2010 December 18, 2009 — Mailout invitation to community groups inviting them to attend the Planning Commission public hearing and or submit comments to Staff (See Attachment 4 — Notice of hearing and initiation to community groups) January 13, 2010 — Presentation and input from the Builders Association. January 20, 2010 — Planning Commission public hearing and action. The Port of Corpus Christi staff attended the meeting and supported the proposed changes. The Metropolitan Planning Organization (MPO) also indicated that the Technical Advisory Committee of the MPO supported the changes to the plan. A representative from the RTA Board attended and thanked staff for including in the plan recommendations concept maps in support of multi -modal initiatives on light rail and water transportation. Two shopping center owners / developers spoke concerning the proposed plan amendments. One of the owners was in favor of the plan amendments and the other expressed concerns for the use of medians on arterial streets. The Planning Commission expressed several concerns on the existing traffic congestion on the south side area and the potential for future traffic congestion. The Commission directed staff to explore the potential for a freeway or high capacity arterial connection (in addition to Crosstown Expressway) from the proposed South Loop to SPID. The Planning Commission indicated that pedestrian and bicycle issues need to be addressed in the plan. Staff stated that the City Council appointed a Bicycle and Pedestrian Subcommittee and additional amendments to the plan are likely after the Committee has had sufficient time to review the plan during the next six months. The Commission raised some concerns with the proposed Smart Growth policy amendments to the Future Land Use Plan. The Commission recommended that the Smart Growth policy amendments be taken out of the proposed plan for more study. Staff is in agreement with the Planning Commission recommendation and the policy on smart growth has been removed from the recommended plan amendments. February 9, 2010 — City Council presentation. February 23, 2010 — City Council public hearing and first reading of the Ordinance. March 9, 2010 — City Council second reading and adoption of the Ordinance. Comprehensive Plan Amendments Page 5 February 23, 2010 Notification: Over 1,000 notices were sent out to neighborhood groups, shopping center developers, architects, professional engineers, chamber of commerce (three in Corpus Christi), homeowners associations, public agencies including schools, the Port of Corpus Christi, TxDOT, RTA and the Metropolitan Planning Organization and many others. Johnny Perales, Jr., P.E., Assistant City Manager Engineering & Development Services Email: johnnyp @cctexas.com Phone: 361- 826 -3828 Attachments: 1. Summary of Plan Amendments 2. Transportation Plan and Future Land Use Plan Background, Analysis and Exhibits 3. Planning Commission Minutes (January 20, 2009) 4. Ordinance Senior Planner Comprehensive Plan Amendments Page 6 February 23, 2010 Urban Transportation Plan 1. Ennis Joslin Road, SPID to Holly Road - Maintain the existing A -31 Arterial cross section. Attachment 1. Summary of Plan Amendments 2. Ennis Joslin Road, south of Holly Road - Reduce the planned street classification from an A -3 Arterial to an A -22 Arterial. 3. Holly Road, east of Rodd Field - Maintain the A -3 Arterial Designation. 4. Wooldridge Road, east of Rodd Field Road - Reduce the planned street classification from an A -3 Arterial to an A -2 Arterial. 5. Airline Road, SPID to Wooldridge Road - Increase the planned street classification from an A -1 Arterial to an A -3 Arterial. 6. Staples Street, south of Saratoga Boulevard to Oso Creek - Increase the planned street classification from an A -2 Arterial to an A -3 Arterial. 7. Navigation Boulevard, between I.H. -37 and Old Brownsville Road - Decrease the planned street classification from an A -3 Arterial to an A -13 Arterial. 8. Compton Road Extension, west of Flour Bluff Drive - modify the alignment to show a conceptual connection to SPID approximately 400 feet east of the present location. 9. Airline Road / Rodd Field Road Intersection, Create a 90 degree intersection at Rodd Field Road. 10. Williams Drive Extension, east of Rodd Field, modify the alignment to minimized new bridge crossing at Ennis Joslin and for the terminus segment of Williams Drive between Ennis Joslin and Paul Jones change the cross section type from a Primary C -3 Collector to a Secondary C -2 Collector. 11. Collector Street System South of Oso Creek, Use a'/ mile grid pattern of arterial and collector streets south of Oso Creek to assure connectivity. 1 A -3 Arterial is planned to have 130 feet of right -of -way, six lanes and a median. 2 A -2 Arterial is planned to have 100 feet of right -of -way, four lanes and a median. 3 A -1 Arterial is planned to have 95 feet of right -of -way, four lanes and a continuous center left turn lanes. Comprehensive Plan Amendments Page 7 February 23, 2010 12. Weber Road, south of Saratoga Boulevard to Oso Creek - Increase the planned street classification from an A -2 Arterial to an A -3 Arterial. 13. Intersection widening, provide standards for intersection widening at collector and arterial and higher level streets. 14. Cross Section Table, revise the cross section table concerning adding local street information, bikeway capability and update to average daily trip information. 15. Nile Drive - Deleted a portion of Nile Drive as a collector and added Pharaoh Drive as a collector street. 16. South Loop Corridor — Replace the South Loop Corridor with a conceptual inset map. 17. Deletion of the Tule Lift Bridge Ship Channel Crossing on Navigation Blvd. — Tule Lift Bridge has been removed and, therefore the arterial street crossing should also be removed. 18. Mustang Island Beach Access Collector — Replace the northern most pedestrian beach access with a C -1 collector roadway designation. 19. High Speed Water Taxi — Show a conceptual route for a high speed water taxi intended to link Corpus Christi with the former Naval Station Ingleside. 20. Light Rail Concept map — Include an inset map of a conceptual light rail concept with connections between the southside, northwest and downtown areas. 21. Adopt a policy for creation of a Complete Streets Program — Complete Streets Programs have been adopted around the country to recognize the need to take all users of streets into account when new streets are built or when existing streets are rebuilt. 22. Policy Statement on achieving street capacity on designated arterial or collector Streets — A policy statement indicating that alternatives to street widening should be considered when widening is not feasible. 23. Policy Statement indicating that where a street is designated as a Bikeway on the Transportation Plan additional street widening maybe required Comprehensive Plan Amendments Page 8 February 23, 2010 Future Land Use Plan 24. Change Medium Density and Low Density Residential Future Land Uses to Commercial Future Land Uses between Rodd Field Road and Ennis Joslin Blvd. and between SPID and Williams Drive extended. A portion of the area is currently shown as medium density (apartment use) and low density residential use (single family) which will be changed to a commercial future use. 25. Planning Commission and Staff are not recommending the following change: This change is included as a citizen request to change the Future Land Use map from commercial, medium density and low density residential to light industrial uses at the northwest corner of County Road 69 and County Road 52. The request is based on the fact that that the existing use at the corner is a large electrical transformer station. Comprehensive Plan Amendments Page 9 February 23, 2010 BACKGROUND AND ANALYSIS Attachment 2 Transportation Plan and Future Land Use Plan Background, Analysis and Exhibits 1. Ennis Joslin Boulevard extended, SPID to Holly Road A group of owners of land south of South Padre Island Drive (State Highway 358), adjacent to Ennis Joslin Road (Spur 3) have approached the City with a proposal to extend Ennis Joslin south of South Padre Island Drive as part of a multi - family residential project. The land owners have requested that the City consider revising the existing plan designation of an A -3, Arterial Cross Section with six lanes and a median to an A -2, Arterial Cross Section with four lanes and a median. A location map showing of the project site is shown below in Figure 1. e Island Drive Ennis Josi Rodd Field Road Proposed Project Comprehensive Plan Amendments Page 10 February 23, 2010 Ennis Joslin Road north of South Padre Island Drive has an A -2 arterial functional classification and is maintained by the Texas Department of Transportation (TxDOT) and designated as Spur 3 by TxDOT. The segment south of South Padre Island Drive is classified as an A -3 arterial but is not intended to be extended by TxDOT. The land owner' expressed concern that future traffic may not warrant a large A -3 six - lane cross section with a capacity of 36,000 average daily trips (ADT). Also, an A -2, four -lane cross section would match the existing section of Ennis Joslin, which has only four lanes. Table 1 indicates that if projected traffic levels were 26,000 trips, an A -2 Arterial with four lanes would be as sufficient to meet future needs. Although the Ennis Joslin Extension has not been built, similar locations provide insight into potential traffic levels in the future. Some of these streets are Weber Road (A -2), Everhart Road (A -1), Staples Street (A -2) and Airline Road (A -1) at their TABLE 1: Ennis Joslin Boulevard extended, SPID to Holly Road Existing Conditions Adopted A -3 Designation/ Projection Proposed A -2 Designation/ Projection Right -of -way None 130 feet 100 feet Lanes Not Applicable 6 4 Cent. Turn or Median Not Applicable Median Median Traffic Counts Not Applicable Not Applicable Not Applicable 4Projected Traffic 2030 (Average Daily Trips) Not Applicable 23,000 to 26,000 23,000 to 26,000 Existing or Planned Capacity (ADT Not Applicable 36,000 25,000 Included in a Bond Program (Yes/No) No Not Applicable Not Applicable approaches to SPID. Each of these four streets at SPID are some of the most congested locations in the City. Traffic Engineering's traffic counts for these streets are listed below in Table 1.1. In addition, the Metropolitan Planning Organizations traffic projections are provided. 4 Unless otherwise noted, Projected Traffic is based on the Metropolitan Planning Organization's (MPO) most current traffic projections. Comprehensive Plan Amendments Page 11 February 23, 2010 Table 1.1: Traffic Counts (City Traffic Daily Two Way MPO Engineering Division) Trips Projection Street Between 2005 2006 2030 Weber (A -2) SH 358 (SPID) Holly NA 38,503 60,000 Everhart (A -1) SH 358 (SPID) Williams 28,754 65,000 Staples (A -2) SH 358 (SPID) Williams 40,207 65,000 Airline (A -1) SH 358 (SPID) Williams 33,670 54,000 The traffic capacity of each of the streets in Table 2 is approximately 25,000 trips per day. These right -of -ways are currently over capacity. (See Table 1.1) Staff Recommendation: Ennis Joslin Boulevard extended, SPID to Holly Road. After review of existing data, Staff recommends that an A -3 cross section should be maintained from SPID to Holly Road so that 130 feet of right -of -way is acquired. However, Staff also recognizes that only a four -lane roadway may be needed until additional development / traffic occurs. Once the area is fully developed and traffic volumes increase, sufficient right -of -way will be available for an additional two travel lanes. A reduction from an A -3 Arterial with 130 feet of right -of -way (6 lanes) to an A -2 Arterial with 100 feet of right -of -way (4 lanes) is not recommended for the following reasons: 1. At Level of Service C, 25,000 trips per day is the upper limit of an A -2 cross section. Projection of 2030 traffic is over 25,000 trips in Table 1. 2. Currently, the city's most congested intersections are located at the arterial approaches to SPID. Extending Ennis Joslin Road will continue the pattern of higher traffic volumes in the vicinity of SPID. 3. Providing for an A -3 right -of -way between SPID and Holly Road, with two outside lanes will assure that the two main lanes of traffic in each direction are not interrupted by right turning movements in the future. 2. Ennis Joslin - Holly Road to Wooldridge Road South of Holly Road, the projection of traffic on Ennis Joslin extended is much less than at the approach to SPID. The MPO 2030 vehicle trip projection for Ennis Joslin Road south of Holly Road is only 16,000 trips per day, which is well below the upper limit of the A -2, four -lane roadway (25,000 adt). In addition, the area is primarily being developed in accordance with the City's Future Land Use Plan as a low- density residential area consisting of low traffic generating characteristics. For example, the Terra Mar Development is a series of subdivisions east of Rodd Field Road in the area between Holly Road and Wooldridge Road. Ennis Comprehensive Plan Amendments Page 12 February 23, 2010 Joslin's southerly extension would provide connections to streets in these subdivisions. Homes are already being built in at least two of the seven neighborhoods. Table 2: Ennis Joslin Holly Road to Wooldridge Road Existing Conditions Adopted A -3 Designation Proposed A -2 Designation/ Projected Right -of -way (feet) 100' (Holly to Ms. Ditch 29) 130 100 Lanes Not Constructed 6 4 Cent. Turn or Median Median Median Median Traffic Counts Not Applicable Not Applicable Not Applicable Projected Traffic 2030 (Average Daily Trips) Not Applicable 16,000 16,000 Existing or Planned Capacity (ADT) Not Applicable 36,000 25,000 Included in a Bond Program (Yes/No) No Not Applicable Not Applicable Another benefit to the area that will likely spur residential development is the 2008 Bond Project for the Oso Bay Park. This project is planned to include a conservation nature park along the Oso Creek / Oso Bay area, with a conservation center, parking lots, trails with signage, wetland development and viewing areas, information kiosks, camp grounds, restrooms, a birding trail, and other amenities. The park will be a resource for area schools through environmental programs. Staff Recommendation: Ennis Joslin - Holly Road to Wooldridge Road. A change from an A -3 cross section to an A -2 cross section for the section of Ennis Joslin south of Holly Road is justified based on the following reasons: 1. The proposed amendment would make the southern segment of Ennis Joslin Road south of Holly Road consistent with the Metropolitan Planning Organizations projection of traffic. 2. Design speeds for an A -2 Arterial of 35 -45 mph are more appropriate than the higher speed A -3 Arterial of up to 55 mph in this planned residential area. According to a National Highway Traffic Safety Administration report, there is a strong correlation between higher vehicle speeds and pedestrian crash occurrence with injury5. 5 Literature Review on Vehicle Travel Speeds and Pedestrian Injuries, U.S. Department of Transportation, National Highway Traffic Safety Administration, DOT HS 809 021 October 1999. Comprehensive Plan Amendments Page 13 February 23, 2010 3. HoIIy Road, east of Rodd Field Table 3: Holly Road East of Rodd Field Road Existing Conditions Adopted A -3 Designation Proposed A -2 Designation/ Projected Right -of -way (feet) 60 to 80 130 100 Lanes 2 6 4 Cent. Turn or Median None Median Median Traffic Counts Not Available Not Applicable Not Applicable Projected Traffic 2030 (Average Daily Trips) Not Applicable 9,000 9,000 Existing or Planned Capacity (ADT) 10,000 36,000 26,000 Included in a Bond Program (Yes/No) No Not Applicable Not Applicable The HoIIy Road segment located between Rodd Field Road and the extension of Ennis Joslin is designated an A -3 cross section. To the west of Rodd Field Road, HoIIy Road is fully improved as an A -1 Arterial with four lanes and a center left -turn lane. Currently, HoIIy Road east of Rodd Field is a two -lane county road cross section. HoIIy Road provides an important connective link between the Ennis Joslin (A -3) extension to Rodd Field Road (A -3). Connecting these primary arterials will provide a higher capacity arterial system to between SPID and HoIIy Road. Staff Recommendation: HoIIy Road, east of Rodd Field to Ennis Joslin Extension, is recommended to remain an A -3 Primary Arterial. The reasons to maintain the designation on the Transportation Plan are summarized below: 1. The A -3 Arterial cross section will provide a connection between other primary arterial roadways. 2. Higher density land uses expected along SPID will be served by a primary arterial roadway. Comprehensive Plan Amendments Page 14 February 23, 2010 4. Wooldridge Road, east of Rodd Field Road Table 4: Wooldridge Road, East of Rodd Field Road Existing Conditions Adopted A -3 Designation / Projection Proposed A -2 Designation / Projection Right -of -way (feet) 60 to 100 feet 130 feet 100 feet Lanes 2 6 4 Cent. Turn or Median No Median Median Traffic Counts Not Available Not Applicable Not Applicable Projected Traffic 2030 (Average Daily Trips) 16,000 16,000 16,000 Existing or Planned Capacity (ADT) 10,000 36,000 25,000 Included in a Bond Program (Yes/No) Yes Not Applicable Three lane improvement The segment of Wooldridge Road east of Rodd Field Road is an A -3 arterial road that will intersect with the proposed extension of Ennis Joslin. The City recently upgraded the road from two to four lanes and a center left turn lane from Airline Road to Rodd Field as part of a 2004 Bond project. The project also includes reconstructing and widening the road to four lanes from Airline Road to Staples Street. Construction on the Airline -to- Staples segment is expected to begin in the Summer 2009 and completed in early 2010. The roadway improvements west of Rodd Field Road were based on the ultimate design width for the foreseeable future, with pavement designed to have a 20 -year life cycle. The 2008 Bond Program contains an improvement to Wooldridge Road from Rodd Field to Quebec Street. The 2008 Bond project will improve Wooldridge Road to an interim street cross section with two through -lanes and a center left -turn lane. Other improvements include: curb and gutter, sidewalks, ADA curb ramps, lane striping and pavement markings, street lighting and a bike lane. Staff Recommendation: Wooldridge Road, east of Rodd Field Road. Staff recommends reducing the A -3 Arterial designation to an A -2 Arterial on Wooldridge Road, between Rodd Field and the extension of Ennis Joslin Road. The reasons for a change to the Transportation Plan are summarized below: Comprehensive Plan Amendments Page 15 February 23, 2010 1. Metropolitan Planning Organization projected traffic levels for 2030 on Wooldridge Road are 7,000 to 9,000 average daily trips, which is far below the design capacity for an A -3 Arterial at LOS C up to 36,000 average daily trips. 2. Wooldridge Road is in relatively close proximity to a freeway (SPID less than 1.5 miles to the north) and to another arterial (Holly Road less than one mile to the north) which, together will provide sufficient roadway capacity for the foreseeable future. 3. Recent improvements on Wooldridge Drive west of Rodd Field Road were engineered for ultimate width of four lanes and a center left -turn lane. 5. Airline Road, SPID to Wooldridge Road Airline Road is designated as an A -1, arterial with four lanes and a continuous left -turn lane. A -1 arterials are designated to contain 95 feet of right -of -way. Currently, on Airline Road between SPID and Williams Drive there is at least 80 feet of right -of -way with expansion of the right -of -way at SPID to 90 feet for left and right- turning lanes. (Exhibit 1) In the segment between Williams Road and Holly Road, there is full development along the roadway with only about 10 feet between street right -of -way and adjacent buildings. (Exhibit 2) South of Holly, development is partially developed with good potential for obtaining additional right -of -way. (Exhibit 3) The capacity of an A -1 arterial roadway at Level of Service C is 24,000 average daily trips. Existing traffic volumes are over 30,000 trips per day based on the City's Traffic Engineering Division 2005 traffic counts. A 2007 Metropolitan Planning Organization (MPO) study determined that sections of Airline Road are functioning at Level Of Service F. Level F is the poorest level of service in the International Traffic Engineers (ITE) system for estimated street functionality. Table 5: Airline Road, SPID to Wooldridge Existing Conditions Adopted Designation Proposed Designation Right -of -way (feet) 80 feet 95 feet 130 feet max., min. 115 feet Lanes 4 4 6 Cent. Turn or Median Center Turn Lane Center Turn Lane Median Traffic Counts 33,670 (2005) Not Applicable Not Applicable Projected Traffic 2030 (Average Daily Trips) 50,000 + - 50,000+ - Existing or Planned Capacity (ADT) 24,000 24,000 36,000 Included in a Bond Program (Yes/No) Not on City Bond Prog. Not Applicable Not Applicable Comprehensive Plan Amendments Page 16 February 23, 2010 Future traffic volumes have been estimated by the MPO. In 2007, an MPO Access Management Study estimated that in 2030 future traffic volumes would range between 42,000 to 54,000 trips per day on Airline Road between SPID and Wooldridge Road. The projected trip volumes would be 175% of capacity to 225% of capacity for an A -1 Arterial Street at Level of Service C. Even if Airline Road can be improved with a median and additional lanes to an A -3 arterial with a LOS C capacity of 36,000 trips per day, the street is still likely to operated at less than ideal LOS C conditions. Other improvements will help reduce the deficiencies of capacity on Airline Road, such as the 2008 Bond Program Improvement to Williams Drive to a four -lane collector which will provide a relief route or escape to less congested streets. Designation and improvement of this portion of Airline Road to an A -3 arterial would add a travel lane in each direction and a median. While obtaining the full 130 feet of right -of- way may not be feasible due to existing development, obtaining another 15 feet of right - of -way or more appears to be feasible north of Williams Road and south of Holly Road to provide two lanes of traffic and a median. The area behind the back of curb would have to be reduced to a tied -to -curb sidewalk. For the segment north of Williams Drive to the freeway, adding two new travel lanes would help to ensure that two free - flowing travel lanes are preserved at SPID and at Williams Drive. Right turning movements off of the SPID frontage road and right- turning onto Williams Drive would have unrestricted movement. Similarly, right- turning movements from Williams Drive onto Airline Road would not block north bound traffic in the main two lanes. The two lanes would also enable four lanes of free flowing traffic through the other major intersections of Holly and Cimarron Road. In addition, designation as an A -3 cross section would permit the construction of a 14 to 16 foot - wide median to control left turning movements. Medians are well recognized as a benefit to enhancing traffic flow. For the segment between Williams Drive and Holly Road, existing development may prevent widening to allow for two additional traffic lanes and a median. Short term, alternatives to relieve traffic could include enhancements to the paralleling collector streets, such a Trey Way Lane and shared driveway access. Long term, it is advisable to preserve the opportunity to acquire additional right -of -way with an A -3 designation so that as redevelopment occurs additional right -of -way can be dedicated. For Airline Road between Holly Road to Wooldridge Road there are several vacant properties where additional right -of -way could be acquired during the development process. Staff Recommendation: Airline Road, SPID to Wooldridge Road. Staff recommends increasing the cross section designation from an A -1 cross section to an A -3 cross section for Airline Road, between SPID and Wooldridge Road. The reasons for the amendment are summarized below: Comprehensive Plan Amendments Page 17 February 23, 2010 1. The existing A -2 designation is not of sufficient capacity to handle the existing or future trips. 2. Two additional travel lanes will improve capacity and traffic flow. 3. A median will improve capacity and traffic flow. 6. Staples Street, from Saratoga Boulevard to Oso Creek Staples Street between Saratoga Boulevard and the Oso Creek is designated an A -2, Arterial with four lanes and a median. Currently, the roadway is improved with four lanes and a center left -turn lane. (See Exhibits 4 and 5) Installation of medians on Staples Street from Saratoga to the Oso Creek is funded as part of the American Recovery Reinvestment Act of 2009. According to the Metropolitan (MPO) Planning Organization and TxDOT, construction may start as early as 2010. In 2006, the MPO commissioned an access management study of several southside corridors. The study concluded that existing traffic levels on Staples Street south of Saratoga are over 20,000 trips per day and that projected trips per day for 2030 could be at least 30,000 trips per day. Staff has also estimated future traffic levels based on full development of existing vacant commercially zoned properties along Staples Street. At full development, an increase of an additional 35,000 to 40,000 trips per day is likely. After discussion with TxDOT, Staff is recommending that this portion of Staples be upgraded to an A -3, six lane designation. The A3 designation is with the understanding that a design should be studied to determine the feasibility of obtaining at least an additional 15 feet of right -of- way to implement a six -lane improvement. A modified A3 design would be needed since there is not enough space between development to allow a full A3, 130 -foot right - of -way design. Staff and TxDOT believe that a minimum of 115 feet of right -of -way would allow for a six (6) -lane design. However, a design with 115 feet of right -of -way would reduce the area behind the back -of -curb from 17.5 feet to 10 feet on each side. Table 6: Staples Street, Saratoga Boulevard to Oso Creek Existing Conditions Adopted Designation Proposed Designation Right -of -way 100 feet 100 feet 130 feet max., 115 feet min. Lanes 4 4 6 Cent. Turn or Median Center Turn Lane Median Median Traffic Counts 9,200 to 21,092 NA NA Projected Traffic 2030 (Average Trips Per Day) NA 20,000 to 35,000 20,000 to 35,000 Planned Capacity 24,000 26,500 36,000 Comprehensive Plan Amendments Page 18 February 23, 2010 Included in a Bond Not on City Adopted Designation Proposed Designation Program (Yes/No) Bond Prog. NA NA Staff Recommendation: Staples Street, from Saratoga Boulevard to Oso Creek. Staff recommends increasing the cross section designation from an A -2 cross section to an A -3 cross section for Staples Street, south of Saratoga Boulevard to Oso Creek. The reasons for the amendment are summarized below: 1. Projection of future traffic suggests that an A -2 cross section with four travel lanes is not sufficient to meet future traffic needs. 2. A modified A -3 cross section appears feasible with the acquisition of 15 feet of right - of -way along platted and unplatted portions of the roadway. 7. Navigation Boulevard - between I.H.- 37 and Old Brownsville Road Navigation Boulevard between IH -37 and Old Brownsville Road is designated an A -3 Arterial. Navigation Boulevard was designated with the high volume A -3 cross section since the roadway provided a crossing to the north side of the ship channel via the Tule Lift Bridge. The Bridge was closed to vehicular traffic in 2006, and was demolished in 2008. The opening of the Joe Fulton Corridor provided an alternate route for train traffic to the north side of the ship channel area. Existing and projected traffic volumes do not warrant a six -lane arterial road section. Existing traffic counts on Navigation Boulevard from 2000 to 2006 range from a high of 5,000 trips per day to 2,800 trips per day. MPO projection of traffic on Navigation Road between IH -37 and Old Brownsville Road are 20,000 trips per day or less. Table 7: Navigation Boulevard, I11-37 to Old Brownsville Road Existing Conditions Adopted Designation Proposed Designation Right -of -way Varies 40 feet to 120 130 95 Lanes 2 6 with a median 4 with center turn lane Cent. Turn or Median none median Continuous left turn lane Traffic Counts (2006) 3,000 to 10,000 Projected Traffic 2030 (Average Trips Per Day) NA 13,000 to 20,000 13,000 to 20,000 Planned Capacity NA 36,000 24,500 Included in a Bond Program (Yes/No) Not on City Bond Prog. NA NA Comprehensive Plan Amendments Page 19 February 23, 2010 Staff Recommendation: Navigation Boulevard - between I.H. - 37 and Old Brownsville Road. Staff recommends reducing the planned street designation from an A -3 Arterial to an A -1 Arterial. The reasons for the amendment to Navigation Boulevard (between IH -37 and Old Brownsville Road) are summarized below: 1. Projection of future traffic suggests that an A -1 cross section with four travel lanes is adequate to meet future traffic needs. 2. The Tule Lift Bridge has been removed and therefore, an increase in traffic is not expected. 3. An A -1 Arterial is recommended with a continuous left -turn lane instead of a median since the continuous left -turn lane allows a longer queue distance for truck stacking /left turn movements. 8. Compton Road Extension - west of Flour Bluff Drive Over the last several years Staff has received several inquiries concerning the feasibility of extending Compton Road westward of Flour Bluff Drive with a future connection to the east bound SPID Frontage Road. (See Exhibit 6) Concerns have been expressed that the Compton Road extension will not be needed and that its connection as shown on the plan is too close to an SPID off ramp. The purpose of the extension is to provide relief to the intersection of Flour Bluff Drive and the SPID frontage road. High intensity future land uses are planned at the intersection, and the collector street would provide an alternate route when the frontage road becomes congested. Current traffic levels are low and while congestion is generally not present, the potential for future congestion exists. Similar, developed areas of the city at approaches to SPID are congested with most streets operating below the desired citywide Level of Service C. Some of these intersections include SPID at Weber, Everhart, Staples, and Airline Road. McArdle Road and Williams Drive, where there is a connection behind the commercial areas at the frontage road, provide a relief route. Extending Compton Road would also provide a future relief route to congested areas along the freeway. A WalMart Supercenter is planned to be constructed over the next five years at the intersection of Flour Bluff Drive and SPID. Location of the Supercenter will generate an increased number of trips and an incentive for redevelopment of commercial properties along the frontage road. The intersection of Compton Road as shown on the Transportation Plan near the SPID off -ramp has been determined by TxDOT to be too close to the off -ramp. A 400 to 500 foot connection eastward would meet TxDOT safety standards. Relocation would require the City to purchase a portion of the land for the connection of Compton Drive to Comprehensive Plan Amendments Page 20 February 23, 2010 the SPID Frontage Road. All available connection points are platted lots and many have existing buildings. Therefore, a revision to the Transportation Plan would be with the understanding that the City would have to dedicate funds to purchase a portion of the Compton right -of -way. Note: the Metropolitan Planning Organization supports maintaining a Compton Road connection to the Freeway Frontage on the Urban Transportation Plan. Staff Recommendation: Compton Road Extension, west of Flour Bluff Drive. Staff recommends deletion of a portion of Compton Road Extension so that Compton will intersect with SPID at a location consistent with TxDOT spacing requirements. Exhibit 6 illustrates the proposed modified extension of Compton Road. 9. Airline Road / Rodd Field Road Intersection - Create a 90 degree intersection at Rodd Field Road. The current intersection at less than a 90 degree angle of Airline Road with Rodd Field Road creates a potentially unsafe intersection. When properties surrounding these two Airline Road Rodd Field Road Yorktown Boulevard _: Comprehensive Plan Amendments Page 21 February 23, 2010 streets are platted the intersection should be reconfigured so that a standard four -way intersection is created. Figure 2 illustrates how Airline Road would curve into Rodd Field Road. Staff Recommendation: Revise the Future Transportation Plan map to show Airline Road / Rodd Field Road with a 90 degree intersection. Creating a standard four -way intersection where three roads come together, creating a safer intersection than allowing each road to intersect at a less than 90 degree angle. 10. Williams Drive extension, east of Rodd Field Road - Modify the alignment to minimize the bridge crossings over the Williams Drainage Ditch. For the terminus segment of Williams Drive between Ennis Joslin and Paul Jones, change the cross section type from a Primary C -3 Collector to a Secondary C -2 Collector. oslin Road isms Drive Extended (East of Lexington) Over the last several years there have been several requests by property owner representatives concerned with the alignment of Williams Drive east of Rodd Field Road. The concerns that have been raised are that Williams Drive may not be needed and that the crossing of the large drainage outfall at the approach to Lexington Boulevard / Ennis Joslin extension could be difficult and costly. The Future Adopted Land Use Plan assigns commercial uses for the properties fronting along SPID, and some apartment uses at the intersection of Williams Drive and Rodd Field Road. (See Exhibit 7) The extension of Williams Drive parallel with SPID is needed to provide relief for the existing congestion on SPID Frontage Roads. Each side of SPID, where full development has occurred, access to Williams Drive, Corona Drive, Tiger Lane, or McArdle Road provides a critical outlet when congestion occurs. Extending Williams Drive and curving the road parallel to the drainage ditch to intersect back to the frontage road, or intersecting with the extension of Ennis Joslin Road are both options that have been suggested. Each of these options is a less ideal alignment for addressing congestion than the existing plan showing a parallel alignment with Comprehensive Plan Amendments Page 22 February 23, 2010 SPID. Curving Williams Drive to the frontage road would eliminate the primary benefit which allows traffic congestion to escape to another street rather than simply funneling the additional traffic back to the frontage road. Also, an alignment that parallels but does not cross the ditch creates a major intersection with Ennis Joslin that is too close (600 feet / 0.11 miles) to the frontage road. The Texas Transportation Institute recommends a spacing of major intersections of at least 1/4 to'/ mile apart. Reducing the Williams Drive cross section from a C -3 Collector with four lanes to a C -2 cross section with three lanes is recommended since Williams Drive will terminated at Paul Jones Drive. Williams Drive between Ennis Joslin and Paul Jones will provide more of a standard connective function rather than as a relief route from congestion on the freeway frontage road. A reduction to a three lane street is acceptable since the proposed residential land uses and public uses will generate less traffic then high density commercial uses. Staff Recommendation: Maintain the current plan to extend Williams Drive parallel with SPID east of Rodd Field Road to Lexington Boulevard. Note: depending on capacity needs and functionality, the illustrated alignment of Williams Drive between Rodd Field Road and Lexington Boulevard may be modified by a city / developer agreement based on a master plan. Illustrate the future extension of Williams Drive east of Lexington to start at a point that is south of the Williams Drive drainage outfall. This alignment change will eliminate a bridge crossing over the Williams Drive drainage outfall. This section of Williams Drive between Ennis Joslin and Paul Jones Drive is for neighborhood connectivity and is recommended to be changed from a C -3 Primary Collector to a C -2 Secondary Collector between Ennis Joslin extended and Paul Jones Drive. 11. Collector Street System South of Oso Creek, Use a'/ mile grid pattern of arterial and collector streets south of Oso Creek to assure connectivity. (See Exhibit 8) A grid system that is smaller than the one mile grid system is supported by the Texas Transportation Institute (TTI). A smaller arterial grid than the traditional one mile by one mile grid will be necessary in the future due to the exponential increase in vehicle miles driven by U.S. drivers. (See Attachment E. Vehicle Miles Traveled vs Population Growth) To address this changing condition, for the future growth area south of Oso Creek the staff is recommending a one half mile grid system composed of arterials and collectors as illustrated on the Map below. This new grid pattern will increase connectivity and transportation choices and help address congestion in the future. Returning to the grid system is also a major theme of Smart Growth advocates. The "grid" provides direct connections, multiple route and high connectivity. The Curvilinear networks offer less connectivity and less route choices. Comprehensive Plan Amendments Page 23 February 23, 2010 1 '2031 Mums based on 9 roothog of dila Years IJ.o1, i1 I1uu❑ r- 1 ❑❑ inn C C C C C C C JE nnr 0.25 0.125 1 Inch = 0.2 Miles 0 A traditional rectilinear street grid provides relatively direct connections and multiple routes, thus has high connectivity HIGH - CONNECTIVITY NETWORK Source: Handy, Paterson, and Butler 2003, 0.25 Inch = 0.2 Miles 0.125 0 Curvilinear networks dominated by cul -de -sacs often pro- vide relatively indirect connections and few routes, thus have low connectivity. LOW- CONNECTIVITY NETWORK Source: Handy, Poterson, and Butler 2003. Comprehensive Plan Amendments Page 24 February 23, 2010 Staff Recommendation: Revise the curvilinear collector system proposed for the area south of Oso Creek to a collector grid. This recommendation is based on the following: 1. A grid system provides greater connectivity than a curvilinear design. 2. A grid system provides more transportation route choices than a curvilinear design. 3. Nationally, vehicular miles driven have increased at a exponential rate relative to linear increases in area population. This means that a grid system is needed to handle increasing traffic volumes. 12. Weber Road, from Saratoga Boulevard to Oso Creek Weber Road between Saratoga Boulevard and the Oso Creek is designated an A -2, Secondary Arterial with four lanes and a median. Currently, the roadway is improved with four lanes and a center left turn lane. Designation to an A -3 Primary Arterial would allow for adding two additional traffic lanes in the future. Weber Road is already designated an A -3 cross section south of Oso Creek and this change would make the cross sections consistent. In addition, Weber Road is strategically located at one of the two Oso Creek Crossing points in the Southside Area. Given its strategic location as an Oso Creek Crossing, upgrading the designation to an A -3 Primary Arterial is warranted. The existing right -of -way along Weber Road is 100 feet. While some properties have already been platted, there are a number of large tracts which remain undeveloped and unplatted. Where development has already occurred, a modified cross section with 115 feet of right -of -way may allow for the full six travel lanes. Before this future improvement can be made an engineering feasibility study and cost estimate should be completed. This recommendation was suggested by the Metropolitan Planning Organization Technical Advisory Committee. Staff Recommendation: Designate Weber Road as an A -3 cross section south of Saratoga Boulevard. 13. Add Intersection Widening Graphics to the Transportation Plan. Intersection widening is a key improvement that must be made when development occurs at the intersection of collector / arterial streets or at arterial / arterial streets. Intersection widening is also needed at the intersection of freeway frontage roads. Intersection widening allows for the installation of left -turn and right -turn lanes. The proposed intersection widening standard for arterials is consistent with the Institute of Traffic Engineers (ITE) standards. Comprehensive Plan Amendments Page 25 February 23, 2010 This recommendation was suggested by the Metropolitan Planning Organization. Staff Recommendation: Incorporate Exhibit 9: Intersection Widening into the Transportation Plan map. 14. Planned Capacity of Transportation Plan Streets. The planned capacity of arterial and collector streets was reviewed and the changes are based on street capacity standards of other cities, primarily Austin and Fort Worth, Texas. In addition, the Metropolitan Planning Organization Access Management Study was also used as a source for the changes. The most notable changes in planned capacity are between the capacities of the A -2 Secondary Arterial of 26,500 trips per day proposed to change to 32,000 trips per day and the A -3 Primary Arterial of 36,000 trips per day proposed to change to 48,000 trips per day. The divided arterial streets contain an average of 8,000 trips per day per traffic lane. Staff Recommendation: The proposed changes are contained in Exhibit 10 which show the capacity of an A -2 increased from 26,500 adt (average daily trips) to 32,000 adt and the A -3 increased from 36,000 adt to 48,000 adt. This change was suggested by the Metropolitan Planning Organization Technical Advisory Committee. 15. Nile Drive - per the planned off campus Expansion of Texas A & M Corpus Christi Pharaoh Drive is shown as In 2008, the City of Corpus Christi entered into an agreement with Texas A & M University to expand their campus on the City -owned little league fields between Nile Drive and Ennis Joslin Boulevard. Once the Little League Baseball Fields are relocated, the agreement and plan for the area would involve the closure of the portion of Nile Drive next to the athletic fields. To reflect this agreement Nile Drive has been removed as a collector street next to the Little League Baseball Fields, and a collector between Nile Drive and Ennis Joslin Boulevard. Comprehensive Plan Amendments Page 26 February 23, 2010 No improvements are needed to Pharaoh Drive as the street is has a 60 -foot right -of- way and is constructed to a collector street standard. Staff Recommendation - Delete a portion of Nile Drive as a collector and added Pharaoh Drive as a collector street. 16. South Loop Corridor — Replace the South Loop Corridor with a conceptual inset map. The MPO and TxDOT have suggested that since the alignment of the South Loop Corridor is conceptual that a conceptual map inset would be more appropriate that showing specific alignment. The inset map would also be consistent with the MPO's Metropolitan Transportation Plan. 17. Deletion of the Tule Lift Bridge Ship Channel Crossing on Navigation Blvd. — Tule Lift bridge has been removed therefore the crossing should also be removed. Staff has discussed the plan amendments with the Port of Corpus Christi Staff which recommended removal of the ship crossing at Navigation Blvd. Maintaining the Navigation road segments up to the ship channel may be maintained on the plan to indicate the need for shoreline land access (but will not show a crossing of the Ship Channel). Staff Recommendation: Remove the crossing of the ship channel by Navigation Blvd. 18. Mustang Island Beach Access Collector — Change a proposed Beach Access Way on Mustang Island to a C -1 Collector Street. Currently the City owns an 80 wide strip of right -of -way between Sunrise Shores Subdivision and Admirals Row Condominums. This right -of -way is approximately 1.2 miles north of Beach Access Road 2. Providing the collector will help to improve emergency response time to remote portions of the gulf beach. The standard collector spacing of to'/ miles apart is not used on Mustang Island in order to minimize cuts through the dune system. The dunes on Mustang Island help to protect the area from hurricane storm surge. Comprehensive Plan Amendments Page 27 February 23, 2010 Staff Recommendation: Designate the City owned property 1.2 miles north of Beach Access Road 2 a C -1 Collector Street. 19. High Speed Water Taxi — Show a conceptual route for a high speed water taxi intended to link Corpus Christi Bay area and the former Naval Station Ingleside. The Bay Area Smart Growth Initiative (BASGI) has suggested that a water taxi route system concept should be included in the Transportation Plan. The key point of the BASGI on a high speed water taxi (which is different from pass proposals), is that a water taxi would have to be a small boat and not the large passenger craft that previous high speed water taxi proposals envisioned. At a minimum, water linkages would connect with the Corpus Christi downtown area, the City of Ingleside, the City of Port Aransas, and NAS Corpus Christi /Texas A & M Corpus Christi. Other important links would include North Padre Island, North Beach, and the City of Portland. Comprehensive Plan Amendments Page 28 February 23, 2010 20. Light Rail Concept map — The Smart Growth Group has suggested that the City include a concept map for potential light rail corridors. A light rail system that contributes to higher density and livable community principles may have merit when major arterial improvements or freeway improvements are considered. The concept, to be illustrated only as a potential alternative to major roadway projects, is proposed as an inset map on the Transportation Plan. A picture of a Los Angeles interchange is offered as an example of the "standard practice" of building larger roadways to cope with larger amounts of traffic. The City needs to consider alternatives in responding to issues of increased traffic congestion rather than only considering building more and larger road systems. 1 Los Angeles, California Comprehensive Plan Amendments Page 29 February 23, 2010 Notice, street cars are on the street and occupying the same right -of -way as cars and trucks. (Clockwise from the upper left, Tampa, Florida; Kenosha, Wisconsin; Little Rock, Arkansas; Seattle, Washington) The following policy statement is proposed to be added to the plan: The City will encourage TxDOT and the Regional Transit Authority to pursue evaluation of mass transit rail service as a long term option for reducing congestion, providing enhanced mobility, promoting attractive sustainable neighborhoods, and as a means to encourage redevelopment. By adoption of this policy, the City will encourage the Regional Transit Authority to conduct a feasibility study to determine the type of rail service (light rail, trolley service, etc.) that, in the long term, could be beneficial and cost effective to the city. Any feasibility study should include a conceptual routing plan, route phasing plan, and projection of potential economic development impacts. Comprehensive Plan Amendments Page 30 February 23, 2010 21. Adopt a policy for creation of a Complete Streets Program — Complete Streets Programs have been adopted around the country to recognize the need to take all users of streets into account when new streets are built or existing streets are rebuilt. All users" means that not only are streets designed for motor vehicles but also for pedestrians, the disabled, users of mass transit and bicyclists. A small but meaningful start to such a program is to identify a vision for Corpus Christi streets in the Urban Transportation Plan. The following policy is proposed for inclusion in the plan. Vision: Corpus Christi's streets will continue to be safe for all to travel, even our most vulnerable citizens — children, older adults, and those with disabilities, and our streets will promote health through physical activity and active transportation. A primary goal to start the program will be to continue and reinforce the City's commitment to take all users into account when designing street improvements. During the next three years the city will embrace the vision for the City's streets by creation of design guidelines for construction of new streets and reconstruction of existing streets. An important source document that can be used by the city during its review of design for street projects is the International Institute of Traffic Engineers manual: "A Proposed Recommended Practice: Context Sensitive Solutions in Designing Major Urban Thoroughfares for Walkable Communities ". 22. Policy Statement on achieving street capacity on designated arterial or collector Streets — Typically, designation on the Transportation Plan for a specific future right -of -way means that additional right -of -way may be required as part of the platting process or a capital improvement process. However, where additional right -of- way is not feasible due to existing development, the City will seek other means to increase street capacity. Other means to achieve the planned street capacity may include traffic system enhancements such as improving access to relief routes, nearby street improvements, access management, traffic signal synchronization, or some other improvements that will increase capacity. The following policy statement proposed to be added to the plan: Alternatives to street right -of -way widening to achieve the planned street capacity should be considered when widening is not feasible. Such alternatives may include, but are not limited to, improvement to nearby streets to create relief routes, access management, and traffic signal synchronization or "smart signals ". Comprehensive Plan Amendments Page 31 February 23, 2010 Exhibit 1 • ti Exhibit 1: Airline Road, SPID to Williams Drive Existing Right -of -way: 80+ Feet Potential Right -of -way Characteristics: All property along Airline Road is platted L. Lcx AJJO/I IMF Comprehensive Plan Amendments Page 32 February 23, 2010 Exhibit 2 Exhibit 2: Airline Road, William Road to Holly Road Existing Right -of -way: 80+ Feet Characteristics: All property along Airline Road is platted. Comprehensive Plan Amendments Page 33 February 23, 2010 Exhibit 3 Exhibit 3: Airline Road, Holly Road to Wooldridge Road Existing Right -of -way: 80+ Feet Characteristics: Partially platted and developed property along Airline Road. Comprehensive Plan Amendments Page 34 February 23, 2010 Exhibit 4 Exhibit 4: Staples Street, Saratoga to Lipes Existing Right -of -way: 100 feet Characteristics: Vacant and unplatted property / some platted property Comprehensive Plan Amendments Page 35 February 23, 2010 Exhibit 5 y1 r Exhibit 5: Staples Street, Lipes Blvd. to Oso Creek Existing Right -of -way: 100 Feet Characteristics: Much of the area contains platted property. Comprehensive Plan Amendments Page 36 February 23, 2010 Exhibit 6 Exhibit 6: Compton Road Extension, Flour Bluff Drive to the SPID Frontage Road Existing Right -of -way: No existing right -of -way Characteristics: Vacant land with development along the SPID frontage Comprehensive Plan Amendments Page 37 February 23, 2010 Exhibit 7 1 4 e Y �T � � k -} 7 f ' 1 f f 4-- BMW T: FUTURE LAND USE ®JYgrmmsa11m4P -NI - Molar- TOR - E IMP - EN limmashgasimm Parr- MOP - Lew nmny Or. - LaR - Lipar�v�P- PJ - mwsiammay um. - - finnysrriarr.e - Pr - Nigh Ilmhy Rm. -MR - Piblb PEP - MAID Norm -1H - Part Vamp- VAC - oralwag. Corridor- OC - PraIssImai =es- PO ®Orslis -oPs - casrztY- COI War - Corasaalizi -CP Ililielblr air i PAS - J3qawawayff - SW ++i+1- Railroad S Comparison of Vehicle Trips Per Day One Acre Single Family Multi Family Commercial Trips Per Day 48 165 3,045 Assumptions using ITE Rates: 5 single family and 25 multifamily units.Commercial mix 15,400 sq. ft. bulding w/ 80% Retail, 20% Restaurant.ITE = International Traffic Engineers Trip Generation Rates Comprehensive Plan Amendments Page 38 February 23, 2010 Exhibit 8: Proposed Arterial and Collector Grid System South of Oso Creek Ci mmi 11. a, 81 61 al al - 64 4 al a 81 g 81 8; 81 81 Elm al lit T- 1 al sagt 81 ♦5 C3 12 a. ►1111+, 1, 81 86 d 81 al RI a 81 10 81 V 81 1 81 q_ 81 al n ri 81 8 I 03 81 a8 81 _ 1 � 1 a Si • . 1 w [(gg I Si 1i 8' 81 RI al 4 Fi +Aril& ' ■I 8' 81 81 81 ri 21-4- 81 8I V Ca 01 1 e1 • n' 4-' ## Comprehensive Plan Amendments Page 39 February 23, 2010 Exhibit 9: Intersection Widening Standards ARTERIALS, COLLECTORS AND PARKWAYS Tangent Taper t! 100' 100-150' IJ FJRGOLAM ME �'neI' ar DOU Right Turn Lanes a L n— - • - - - - • - • - - - ... - ... . .. _ •Odwrdk Locatlors may very wltin dg -t-or way. • Minimum Norm IA brim !WPM. Wherever feasible tangent and taper Dimensions will meet AASHTO (American Association of State Highway and Transportation Officials) Standards. However, where block widths are less than 350 feet tangent and taper dimensions maybe reduced. Source: 2004 AASHTO Green Book Policy on Geometric Design of Highways and Streets, pages 714 — 715. Existing Plan Table I I II In 1 HI iii sss Ill gig S ill d ir iii 000 II 1 w nd 1 ! I ' !!! I Ill Nr4V N .r.re ill IV 1 1 Urban Streets |~ tin k/ §y j\ Opoo CO CO CO Ca Ca Ca Ca 03 al al al /// \ \ \\ 222 2222 SSS 4 to 5 Miles J \J/ \ }} } . /__ _ 07 07 07 CO CO CO § (.( >ozz >zz 0 4 - 10 Lanes Freeway /Expressway j7 77 {_ 7 2 Rural Streets k( 0 tin En En. on- \ Om En-- g e =m Minor Rural Arterial Undivided • \\ CC ) .} CL }// \ \ \\ \ \/ \ \ ttCO c. \\} \\ \W 03 \= /)\ \ \} 55LE CC Future Land Use Plan map changes — two changes have been suggested at this time. 24. Change Medium Density and Low Density Residential Future Land Uses to Commercial Future Land Uses between Rodd Field Road and Ennis Joslin Blvd. and between SPID and Williams Drive extended. Planning Commission and Staff agrees with this change. Comprehensive Plan Amendments Page 43 February 23, 2010 25. A request has been made for the City to consider including Public Semi - Public and Industrial uses on the Future Land Use Plan for the northwest corner of County Road 69 and County Road 52. The request is based on the fact that that the existing use at the corner is a large electrical transformer station. Planning Commission and Staff are not in favor of revising the Future Land Use Map to Light Industrial and Public Semi - Public uses since electrical transformer stations are not exclusively designated for industrial areas and are also utilized in commercial and neighborhood. Comprehensive Plan Amendments Page 44 February 23, 2010 COMMISSIONERS Rudy Garza, Chairman A. Javier Huerta, Vice - Chairman James Skrobarczyk John C. Tamez Johnny R. Martinez Evon J. Kelly John Taylor Mark Adame Govind Nadkarni I. CALL TO ORDER AMENDED MINUTES REGULAR PLANNING COMMISSION MEETING Council Chambers- City Hall Wednesday, January 20, 2010 5:30 P.M. Attachment 3 Planning Commission Minutes (January 20, 2010) STAFF: Johnny Perales, P.E., Assistant City Manager, Engineering and Development Services Faryce Goode Macon, Assistant Director of Development Services /Planning Miguel S. Saldana, AICP, Senior City Planner Robert Payne, AICP, City Planner Lisa Wargo, Senior City Planner Deborah Brown, Legal Counsel Debbie Goldston, Recording Secretary A quorum was declared and the meeting was called to order at 5:30 p.m. Commissioner Govind Nadkarni was absent. II. APPROVAL OF MINUTES Motion for approval of the minutes from the January 6, 2010, regular Planning Commission meeting was made by Commissioner Tamez and seconded by Commissioner Taylor. Motion passed unanimously. III. PUBLIC HEARING AGENDA ITEMS C. FUTURE LAND USE AND URBAN TRANSPORTATION PLANS Robert Payne, Senior City Planner, gave a Power Point presentation regarding the Future Land Use and Urban Transportation Plans. Mr. Payne stated that the updating process for the Urban Transportation Plan began in June. Meetings were held with the Metropolitan Planning Organizations Technical Advisory Committee, TxDot, Nueces County, and San Patricio County. A number of comments were received from the committee members. Two meeting were held with the City Transportation Advisory Committee and comments were received from them. A Smart Growth workshop was held and several meetings were held with the Corpus Christi Bay Area Smart Growth Initiative. There was a meeting with the Corpus Christi Builders Association a few weeks ago and several comments were received from them and the Port of Christi staff. A month ago, approximately 1000 notices were sent out to various groups regarding this issue and phone calls were received from those groups. If the Planning Commission votes to approve the proposed plan, the next step would be for the plan to be presented to the City Council on February 9, 2010. The first reading and public hearing of this plan would be on February 23, 2010 and the second reading and adoption of the ordinance would be on March 9, 2010. Mr. Payne explained that the Transportation Plan will be used to build a transportation network to accommodate the adopted Future Land Use Plan. Also, it will be used to guide capital improvement decisions. Lastly, the plan is a guide for development decisions especially pertaining to the amount of right -of -way to be dedicated during the platting process. Mr. Payne explained the three arterial types. The first is the largest arterial type Corpus Christi has which is called the "A3 Primary Arterial" with six (6) lanes and a median with 130 feet of right -of -way. The second type of arterial is the "A2 Secondary Arterial" with four (4) lanes and a median with 100 feet of right -of -way. However, the most typical arterial in Corpus Christi is the "Al Minor Arterial" with four (4) lanes and a continuous turn lane having 95 feet of right -of -way. At this point in the presentation, Vice Chairman Huerta asked about how this plan will affect the bikeways. Mr. Payne said that the 130 foot or 95 foot right -of -way could be expanded. Mr. Payne said that a bikeway committee was very recently formed and that the committee will present recommendations in the near future. Commissioner Skrobarczyk had a question regarding the differentiation of the arterial streets. He asked for clarification as to which type of arterial street would accommodate the bike lane. Mr. Payne said that on shared vehicle- bicycle streets, there must be 14 feet of space between the lip of the gutter pan and the stripe for the lane and each of the arterials have enough right -of -way to accommodate bikeways. The next item of the presentation was in regards to Airline Road. On Airline Road from SPID to Wooldridge Road, the recommendation is to increase the planned street classification from an "A -1" Minor Arterial to an "A -3" Primary Arterial. Airline Road is currently operating at a level of service F. This road is operating very poorly at operating level F which is the worst level of service. Upgrading to an "A3" Primary Arterial road includes a median and two more lanes which will protect four through -lanes of traffic from right turning movements. Mr. Payne also explained where obtaining additional right -of -way is not feasible, Transportation Planners should look for other ways to increase capacity, i.e. smart signals, intersection widening, etc. Staples Street is currently an "A2 "Arterial and the recommendation is upgrading Staples Street to an "A3" Arterial. On Staples Street from Saratoga to Oso Creek, the recommendation is to expand from an "A2" with 100 foot right- H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc of -way with four lanes and a median up to the "A3 ". That upgrade would provide 130 feet of right -of -way with six lanes and a median. This proposed change envisions a modified "A3" with six lanes in a narrow right -of -way due to existing development. The next street to be discussed was Navigation Boulevard. Staff recommends reducing the planned street designation from an "A3" Arterial to an "Al" Arterial based on the projection of future traffic. The Tule Lift Bridge has been removed and a continuous left turn lane allows a larger queue for truck stacking and left turn movements. The current location of Compton Road west of Flour Bluff Drive is in conflict with TxDOT safety standards. The MPO supported maintaining at least a conceptual connection to SPID east of the present location shown on the plan. The next item to be discussed was the explanation of the Williams Drive extension, east of Rodd Field Road. The recommendation is to realign and change from a C3 4 lane collector to a C2 3 lane collector. The next slide of the presentation was regarding Weber Road South of Saratoga Boulevard to Oso Creek. That recommendation is to change from an A2 Secondary Arterial with 100 feet of right -of -way and four (4) lanes to an A3 Primary Arterial with 130 feet of right -of -way and six (6) lanes. Mr. Payne then pointed out the planned capacity of the Transportation Plan Streets. The MPO suggested staff review the planned capacity (average daily trips) of the arterial streets. Using Austin, Texas and Ft. Worth, Texas as models the following is recommended: 1) The Al Arterial, four (4) lanes with continuous left lane turn - 24,000 trips per day and no change is recommended. 2) The A2 Arterial, four (4) lanes with median has currently designated with 26,500 average daily trips and the proposed average daily trips is 32,000. 3) The A3 Arterial is six (6) lanes with median currently has 36,000 average daily trips and is recommended for 48,000 average daily trips. The following slide illustrated Nile Drive/Pharaoh Drive. The proposed changes were per the planned off campus expansion of Texas A & M University Corpus Christi. The South Loop Corridor is a future freeway and the recommendation is to replace the South Loop Corridor with a conceptual south loop inset map. The next recommendation was the deletion of the Tule Lift Bridge Ship Channel Crossing on Navigation Boulevard. The Port of Corpus Christi suggested that the City remove the crossing since the bridge has been removed. There is no expectation that there will be a future crossing at this location. H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc The next item proposed changing a pedestrian beach accessway on Mustang Island to a C -1 Collector. The recommendations were to change a pedestrian Beach Access on the Current Plan to a C -1 Collector at an existing 80 foot right -of -way located 3.1 miles north of the State Park next to the Porto Villageo Subdivision. As far as a consideration for the future, the High Speed Water Taxi and Light Rail concepts were explained by Mr. Payne. The high speed water taxi concepts were smaller water craft than past proposals, tourist links, and Economic Development Links, i. e., Texas A & M Corpus Christi, Naval Air Station, Ingleside, Portland, Port Aransas. With the Light Rail Concept, the Smart Growth group has suggested that the City consider a Light Rail Concept whenever large regional transportation corridor projects like the South Loop are considered. The 2007 National Survey suggested that 75% said that improved public transportation and building communities that don't require as much driving are better long term solutions for reducing traffic than building new roads. Another suggestion was to include a Light Rail Concept Map on the Transportation Plan to be considered as an alternative to major regional transportation projects. There is also a recommendation to adopt a policy for the creation of a complete Streets Program. "Complete Streets" programs have the goal of recognizing the need of all users of city streets, not just motor vehicles, when designing or improving streets. The Proposed Vision Statement is "Corpus Christi's streets will continue to be safe for all to travel, even our most vulnerable citizens, children, older adults and those with disabilities and, our streets will promote health through physical activity and active transportation." Mr. Payne explained that the Policy Statement on Achieving Street Capacity includes a policy statement indicating adding right -of -way to achieve more traffic volume is only one of several potential ways to increase street capacity. Other methods to increase capacity may include: alternative street designs, i.e., tied to curb sidewalks, narrower lanes, etc., intersection improvements, and access management. The next topic of the presentation was Street Widening for Bikeway Improvements. The Transportation Advisory Committee recommended adding language to the plan stating that street widening maybe required for streets designated on the City's Bikeway Plan. Regarding the Future Land Use Plan, changes of future land uses from Low and Medium Density Residential to Commercial. The Smart Growth goals were explained to be: 1. Mix land uses. 2. Take advantage of compact building design. 3. Create a range of housing opportunities and choices. H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc 4. Create walkable neighborhoods. 5. Foster distinctive, attractive communities with a strong sense of place 6. Preserve open space, farmland, natural beauty, and critical environmental areas. 7. Strengthen and direct development toward existing communities. 8. Provide a variety of transportation choices. 9. Make development decisions predictable, fair and cost effective. 10. Encourage community and stakeholder collaboration in development decisions. The 2009 Urban Transportation and Future Land Use Plan Amendments in the area of Ennis Joslin Road were then discussed. From SPID to Wooldridge showed the existing Ennis Joslin Road has 130 ft. right -of -way, six (6) lanes, and divided. The proposed plan is from SPID to Holly Road there is no change needed. It was proposed to maintain the existing 130 ft. of the A3 cross section and obtain 130 ft. of right -of -way. The initial construction could be only two or four lanes. Ultimately, six lanes will protect the through movement of the inside four (4) through lanes. From Holly Road to Wooldridge Road, reduce cross section from an A3, 130 foot cross section to an A2, 100 foot cross section. On Holly Road, the existing plan is 130 foot right -of -way with six (6) lanes divided. The proposed plan is to maintain A3 Primary Arterial to provide connectivity and increase capacity near the freeway. Lastly was Wooldridge Road, with the Planned A -3 Arterial, 130 ft. right -of -way and six (6) lanes divided is proposed to be reduced to an A -2 with 100 feet of right -of -way and four (4) lanes. Commissioner Tamez asked how this proposed plan will affect businesses. Mr. Payne explained, in regard to congestion, national studies have shown if it takes too long for a consumer to get somewhere, they will often not attempt the trip at all. Also, if the only option is to take a left turn and the wait is too great, the consumer will just continue to drive straight ahead instead. The better access that can be provided is better to maintain the business. Mrs. Faryce Goode Macon said that is correct and that it is always the advantage to the business to be on the right side of the traffic. The presentation was concluded and Chairman Garza opened the public hearing. 1. David Loeb, 3100 Santa Fe, Apartment 43A, Corpus Christi, Texas. Mr. Loeb stated that he felt the community should start to consider the light rail system for the future. Some of the roads, especially on the south side will not be able to be widened and we should consider light rail as an option. He said that in the future 66,000 trips daily on Everhart would be unmanageable, and people would no longer want to travel there. Mr. Loeb also said that not immediately, but within twenty years, we may need to look into the light rail concept. H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc 2. Tom Niskala, 5151 Flynn Parkway, Corpus Christi, Texas. Mr. Niskala and his organization supports this plan and commended staff on hard work. He felt it is important to have the water taxi and light rail options for the future as traffic and population will greatly increase by 2030. 3. Bill Green, Port of Corpus Christi, Corpus Christi, Texas. Mr. Green complimented staff on hard work for the recommendations presented. 4. Judy Telge, 316 Palmero, Corpus Christi, Texas. Mrs. Talge also supports these recommendations. She said she has never seen anything as far reaching and visionary as this presentation. She appreciates the great job staff has done in the plan amendments. . 5. Bill Brown, 5830 McArdle, Corpus Christi, Texas. Mr. Brown asked how this plan is going to affect land owners, business owners, and developers. He feels that this plan was put together too quickly and without proper notification to the community. Mr. Brown objected to a hasty approach to put this proposal to the City Council to adopt this plan. He supported most of the proposals put forth, but said that most people are unaware of the affects this plan would have on most businesses. He stated that more study and input is necessary, in his opinion. There were no others to speak in the public hearing therefore Chairman Garza closed the public hearing. Commissioner Skrobarczyk stated that he objects to the Smart Growth Principles presented in the plan. He said Corpus Christi was designed with the car in mind and not pedestrian travel. He also inquired if developers would receive a Smart Growth Rating and if that rating hinder the developers to begin their development projects. Mrs. Goode Macon explained that Smart Growth is a directive received by staff from past Commissions and staff is continuing that directive. Chairman Garza further explained that how he understands it is that we are encouraging developers to use a grid system, but the plan is not a rule of law. Commissioner Tamez suggested tabling the vote on this case until a future meeting thinking that the action would give business community more of an opportunity to get more information. Chairman Garza stated that anyone in the business community that has not received the information presented in tonight's meeting will have the opportunity to go before the City Council and express their opinion during the City Council public hearing. Commissioner Martinez had a comment to make which was he feels the City is growing quickly and that it is so difficult to get around town due to so many accidents. Commissioner Martinez stated that the safety of the citizens is the most important thing to consider. H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc Commissioner Tamez made the motion to table the approval of the Transportation Plan to a future date with Commissioner Skrobarczyk seconding that motion. The motion failed. Commissioner Skrobarczyk stated that if the Commissioners were not to table the vote on the presentation at today's meeting, he would like to make a recommendation concerning the issue of the right -of -way plan. He would consider approving the right -of -way plan dependent on separating the water taxi and light rail proposals from this plan and making it an overlay like the South Loop. Commissioner Skrobarczyk asked if the Commissioners could approve the right -of -way plan and not include in that plan the water taxi and light rail ideas, however, those are good ideas for the future. He suggested we make those portions separate from the proposed right -of -way plan. Commissioner Skrobarczyk would also like to keep separate the Smart Growth portion as well as a nice idea to work towards, but not a part of the right -of -way plan. Mr. Payne stated that the plan is not absolutely definitive except for the changes outlined in the Transportation map right -of -way. Chairman Garza stated that there was a motion and second to table this issue. He then asked for a roll call. At this time, Chairman Garza asked for a vote on tabling the issue. He called for a roll call. Commissioner Taylor — nay, Commissioner Kelly - nay, Commissioner Tamez - aye, Commissioner Skrobarczyk - aye, Chairman Garza - nay, Vice - Chairman Huerta - nay, Commissioner Martinez - nay, Commissioner Nadkarni — absent, Commissioner Adame — absent from the vote. Chairman Garza stated that the motion fails. At this time, Commissioner Skrobarczyk made a motion to approve the right -of -way plan and not approve the Smart Growth portion of the presentation, but to approve the overlay portion with the light rail, the south loop with the link to SPID, and the water taxi. Commissioner Martinez seconded the motion. Commissioner Skrobarczyk asked that a designation be made about the proposed South Loop. The proposed South Loop could draw a lot of traffic away from the major arterials in place at the present time. Chairman Garza agreed that this is a good idea and should be included in the proposed plan. Mr. Payne said he would like to have a dialogue with the MPO. He stated that the input of MPO staff is very important regarding this issue. Commissioner Garza asked that a vote on re- opening the public hearing be made so Mr. Tom Niskala of the MPO be allowed to speak on this issue. The vote was unanimous to allow Mr. Niskala to speak. Mr. Niskala stated that it would be correct to, in the next few following months, make the decision to allow a private public partnership to make the idea of the South Loop a reality much sooner than he had ever imagined it could be. If that does happen, then TxDot could accelerate some of the environmental work H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc and other work that is going on for the whole South Side mobility corridor. A developer may then want to look at this as sections of independent utility. They would then build those sections that would create the greatest traffic first such as Rodd Field over to State Highway 286. It would come further south and west and accomplish some of the things that were just discussed. Former Commissioner David Loeb had some comments. He wanted to address the score sheet which was created by City Council in which staff was asked to create that. Staff and Smart Growth group wrote a score sheet based on what was suitable for Corpus Christi. Dependent on the score the developer received, he /she could use that score for marketing. Smart Growth considers their group to be an enabling entity for developers to do new things such as provide commercial uses near residential. It is not the purpose of Smart Growth for the points received to be a decision - making tool for zoning. Feedback from the business community is that they do not want street construction going on in front of their business due to construction hinders the business. Commercial developers like Smart Growth principles at a mid to moderate level. The interior development people love it. Home builders are between okay to expressing hostility. Mr. Loeb stated it is a good idea to build high density developments around the light rail and have lower density go out from that. Mr. Loeb stated that his group is not about telling developers what they are not allowed to do, but offering developers an option to another way. Commissioner Garza closed the public hearing and stated that there is a motion on the floor to recommend adoption of the transportation plan with omissions of Smart Growth principles and a recommendation to push further study of the South Loop as a possible option and light rail and water taxi as options to explore further in the future. Deborah Brown, Legal Counsel, asked Commissioner Skrobarczyk to restate his motion in its entirety. Commissioner Skrobarczyk amended his motion to recommend approval of the Transportation Plan amendments and include three inset concept maps on the plan. The concept maps were for the South Loop, water taxi routes and a conceptual light -rail route. Included in the motion was approval of the two future land use Plan amendments, but not including the text amendments on Smart Growth. Commissioner Skrobarczyk also included in the motion a request to staff for an accelerated study of an additional freeway or high capacity arterial connector from SPID to the South Loop. A location east of the Crosstown Expressway was suggested, i.e. Rodd Field Road or some other location. H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc Attachment 4: An Ordinance H:A SHARED \PWRPOINT \2010 \02 -23 -10 \Transportation Plan and Future Land Use Plan Action and Agenda Memo 2- 23- 2010.doc ORDINANCE AMENDING THE COMPREHENSIVE PLAN OF THE CITY OF CORPUS CHRISTI, BY AMENDING THE CORPUS CHRISTI URBAN TRANSPORTATION PLAN (ADOPTED BY ORDINANCE 025251, AND THEREAFTER AMENDED BY ORDINANCES 026278 AND 026402) AND THE CORPUS CHRISTI FUTURE LAND USE PLAN (ADOPTED BY ORDINANCE 026278) FOR THE CITY AND ITS EXTRATERRITORIAL JURISDICTION; ESTABLISHING A UNIFIED FUTURE LAND USE AND TRANSPORTATION PLAN FOR COORDINATION OF LAND USE ZONING SUBDIVISION DEVELOPMENT AND CAPITAL IMPROVEMENTS CONSISTENT WITH THE PUBLIC INTEREST; AMENDING RELATED ELEMENTS OF THE COMPREHENSIVE PLAN OF THE CITY; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION WHEREAS the Planning Commission has forwarded to the City Council its reports and recommendations concerning the adoption of the Corpus Christi Urban Transportation Plan and the Corpus Christi Future Land Use Plan, both as elements of the Comprehensive Plan of the City of Corpus Christi WHEREAS with proper notice to the public, public hearings were held on Wednesday January 20, 2010 during a meeting of the Planning Commission and on Tuesday, February 23, 2010 during a meeting of the City Council of the City of Corpus Christi during which all interested persons were allowed to appear and be heard WHEREAS the City Council has determined that these amendments 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 Corpus Christi Urban Transportation Plan, an element and integral part of the Comprehensive Plan of the City of Corpus Christi, Texas, is hereby amended by adopting the revised Corpus Christi Urban Transportation Plan to read as shown in Exhibit 1 attached and incorporated by reference into this ordinance. SECTION 2. That the Corpus Christi Future Land Use Plan, an element and integral part of the Comprehensive Plan of the City of Corpus Christi, Texas, is hereby amended by adopting the revision Corpus Christi Future Land Use Plan to read as shown in Exhibit 1 attached and incorporated by reference into this ordinance. SECTION 3. That to the extent the amendments made by this Ordinance represent a deviation from the Comprehensive Plan, the Comprehensive Plan, including the Urban Transportation Plan and the Future Use Plan, are amended to conform to the amendments made by this Ordinance. _. __ .....,. • n, T.nnc..nrtatinn Plan _ Cmmnrehencive Plan doc SECTION 4. That the Comprehensive Plan of the City of Corpus Christi, Texas as amended from time to time, except as changed by this Ordinance and any other ordinances adopted on this, date remains in full force and effect SECTION 4. That any ordinance or part of any ordinance in conflict with this ordinance is expressly repealed by this ordinance SECTION 5. The City Council intends that every section, paragraph, subdivision, Clause, phrase, word, or provision of this ordinance shall be given full force and effect for its purpose. Therefore, if any section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that judgment shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance. SECTION 6. 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. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: oZ /i$ , 2010. Assistant City Attorney For City Attorney G•�. gwc W eborah . Bro Joe Adame Mayor, City of Corpus Christi u• i cr._rnn ew .oa i WI _fPV curVV)mn Ao 1,,\7_ /3 -10 \Urban Transportation Plan - Comprehensive Plan.doc That the foregoing �o inance was read for the first time and passed to its second reading on this the day of Pa c y— , 2010, 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 That the foregoing ordinance was read for the second time and passed finally on this the day of , 2010, by the following vote: Joe Adame Priscilla G. Leal Chris N. Adler John E. Marez Brent Chesney Nelda Martinez Larry Elizondo, Sr. Mark Scott Kevin Kieschnick APPROVED AND PASSED on this day of , 2010. ATTEST: Armando Chapa, City Secretary Joe Adame, Mayor EXHIBIT 1 Urban Transportation Plan (Note: to maintain consistent number of changes in this ordinance and the City Council agenda memo), items that do not require a plan change have been struck through. section, Arterial -cress 2. Ennis Joslin Road, south of Holly Road - Reduce the planned street classification from an A -3 Arterial to an A -22 Arterial. 3. Holly Road, east of Rodd Field Maintain the A 3 Arterial Designation. 4. Wooldridge Road, east of Rodd Field Road - Reduce the planned street classification from an A -3 Arterial to an A -2 Arterial. 5. Airline Road, SPID to Wooldridge Road - Increase the planned street classification from an A -1 Arterial to an A -3 Arterial. 6. Staples Street, south of Saratoga Boulevard to Oso Creek - Increase the planned street classification from an A -2 Arterial to an A -3 Arterial. 7. Navigation Boulevard, between I.H. -37 and Old Brownsville Road - Decrease the planned street classification from an A -3 Arterial to an A -13 Arterial. 8. Compton Road Extension, west of Flour Bluff Drive - modify the alignment to show a connection to SPID approximately 400 feet east of the present location. 9. Airline Road / Rodd Field Road Intersection, Create a 90 degree intersection at Rodd Field Road. 10. Williams Drive Extension, east of Rodd Field, modify the alignment to minimized new bridge crossing at Ennis Joslin and for the terminus segment of Williams Drive ' A -3 Arterial is planned to have 130 feet of right -of -way, six lanes and a median. 2A-2 Arterial is planned to have 100 feet of right -of -way, four lanes and a median. 3A-1 Arterial is planned to have 95 feet of right -of -way, four lanes and a continuous center left turn lanes. H \l .Fr- DIR \Shared\l.FfAI: DF.V.SVCS\2010 Aeenda\2 -23 -10\ Urban Transportation Plan - Comprehensive Plan.doc between Ennis Joslin and Paul Jones change the cross section type from a Primary C -3 Collector to a Secondary C -2 Collector. 11. Street System South of Oso Creek, Use a'/ mile grid pattern of arterial and collector streets south of Oso Creek to assure connectivity. See Exhibit 1. 12. Weber Road, south of Saratoga Boulevard to Oso Creek - Increase the planned street classification from an A -2 Arterial to an A -3 Arterial. 13. Intersection widening, provide standards for intersection widening at collector and arterial and higher level streets. See Exhibit 2. 14. Cross Section Table, revise the cross section table concerning adding local street information, bikeway capability and update average daily trip information. See Exhibit 3. 15. Nile Drive - Delete the portion of Nile Drive between Pharaoh Drive and Ennis Joslin as a C -1 Collector Street and designate Pharaoh Drive between Nile Drive and Ennis Joslin as a C -1 collector street. 16. South Loop Corridor — Replace the South Loop Corridor with a conceptual inset map. See Exhibit 4. 17. Deletion of the Tule Lift Bridge Ship Channel Crossing on Navigation Blvd.. 18. Mustang Island Beach Access Collector — Replace the proposed pedestrian beach access located on the existing future road right -of -way (VoI.1436 Pg 844 -845) on Mustang Island with a C -1 collector roadway designation. 19. High Speed Water Taxi — Show a conceptual route for a high speed water taxi intended to link Corpus Christi with the former Naval Station Ingleside. See Exhibit 5. 20. Light Rail Concept map — Include an inset map of a conceptual light rail concept with connections between the southside, northwest and downtown areas. See Exhibit 6. 21. Adopt a policy for creation of a Complete Streets Program as follows: Vision: Corpus Christi's streets will continue to be safe for all to travel, even our most vulnerable citizens — children, older adults, and those with disabilities, and our streets will promote health through physical activity and active transportation. H:\ LEG -DIR \Shared \LEGAL- DEV.SVCS\2010 Agenda\2 -23 -10 \Urban Transportation Plan - Comprehensive Plan.doc A primary goal to start the program will be to continue and reinforce the City's commitment to take all users into account when designing street improvements. During the next three years the city will embrace the vision for the City's streets by creation of design guidelines for construction of new streets and reconstruction of existing streets. An important source document that can be used by the city during its review of design for street projects is the International Institute of Traffic Engineers manual: "A Proposed Recommended Practice: Context Sensitive Solutions in Designing Major Urban Thoroughfares for Walkable Communities ". 22. Adopt a policy statement on achieving street capacity on designated arterial or collector Streets: Alternatives to street right -of -way widening to achieve the planned street capacity should be considered when widening is not feasible. Such alternatives may include, but are not limited to, improvement to nearby streets to create relief routes, access management, and traffic signal synchronization or "smart signals ". 23. Add the following statement to the Plan: Additional right -of -way maybe required to accommodate bikeways if the street is designated as a Bikeway on the Transportation Plan. Future Land Use Plan 24. Change Medium Density and Low Density Residential Future Land Uses to Commercial Future Land Uses between Rodd Field Road and Ennis Joslin Blvd. and between SPID and Williams Drive extended. See Exhibit 7. a..... -n r.. rn A is ♦ ___a_�n 1'] 1h117.1..... T..............�:nn 0!,.1 _ ('........eh.........o 01.....7.... EXHIBIT 1. Street System South of Oso Creek ! ` - C3 LC3 OB .■I me tai 1 1 1 at w■ 51' +■ t. ! r ., ....1...,x,1 ■ i "• i3 ■ C3 11 r i. `' ia 61 1 C y1i1� W! ;,:b„, r r t3 i C3 ■ C. )! ....yr. -- -l1. -,ter .zi ,, I i ;61 A2 • I.d2'.. ... +4or1.r ) I 5e 1 ! r ,..1 011 C3 .. ra 1 C3 .■ ....2.... 111 WM BIM 1 31 C. C3 _ ■.r...�'. ` • --r-.1 / i(� 18 I A-2 4 A ■ A A 1 l' P " C+t 1 'i7 CI, ■ 1 ZI 1 J • C3 ■ 1 ■ :'s 1 ze 72 ■ .i `,: ■ � e C3 ■ a €; C� • C3 ci 4 fsp ■ 1 A2 1A2 • A ..r.•lrm. ar. ■. el ■ t 1 `'i iii 01461111ANII U■4 ■3`■ 64 111144 71 C■ CI ■ (1 r, CI I C7 ■ Ct ■ C7 ■ r. E 61 A x2 I .w 1 €1 -91 C2 1 ,711 ■■ A2 , K i l A2 A2 1 A2 _fa i r e r- C3 1 C3 1 3i a7 6 W.= 131 AF ! A2 • A2 1 , 42 1 •.."••• .oim. .S.. n!.w ■ 4 -z1 Vi ■ '61111101111§11- Wan. ■ w 1 1 � 4 r.31 C it Gf ■ 3s: I et ..I., . Jt -t r+�I CI I CI 1.4 111 o.11 811 oi va1 cn Grey _1U V cvrcr)mn Avenr1a\')_ 2' 3_ in\ Il rhanTransnortationPlan- ComprehensivePlan.doc EXHIBIT 2. Intersection Widening Standard ARTERIALS, COLLECTORS AND PARKWAYS Tangent Taper . .., 100.--150' . , PAR<ING LANIE PARR! NG LANE .... ---- Right Turn Lanes ARV LANE • PARKNIN, LANE •F,,i(fewalk Loc tonA may vary vvi th:n I., • !‘linimurn eleven foot turnii-c; :aries VVherever feasible tangent and taper Dimensions will meet AASHTO (American Association of State Highway and Transportation Officials) Standards. However, where block widths are less than 350 feet tangent and taper dimensions maybe reduced. Source: 2004 AASHTO Green Book Policy on Geometric Design of Highways and Streets, pages 714-715. 7 1 rl C• A 1 nr,11 CtFflC\flfllA A Tr.nelmArfafirm Plain - DIQ., A nr• Urban Streets )esignation Urban Streets Local Residential Collectors C1 C2 C3 P1 Arterials Al A2 A3 Minor Residential Collector Secondary Collector Primary Collector Parkway Collector Minor Arterial Undivided Secondary Arterial Divided Primary - Arterial Divided Freeways F1 Freeway /Expressway Rural Streets Designation Rural Streets RA1 RA2 RA3 Minor Rural Arterial Undivided Secondary Rural Arterial Undivided Primary Rural Arterial Divided Pavement Back of Curb Median to Back of Thru Travel Center Turn ROW Curb Lanes Lane 50' 28' 1 Lane & parking No 60' 65' 75' B0' 95' 100' 130' 40' 41' 50' 40' 64' 54' 79' 2 Lanes 3 Lanes 4 Lanes 2 lanes 4 Lanes 4 Lanes 6 Lanes No Center Turn No NA Ideal Spacing between Intersections At Blocks 1/4 to 1/2 Mile 1/4 to 1/2 Mile 1/4 to 1/2 Mile 1/4 to 12 Mile Center Turn 1/2 to 1 12 Miles Median 12 to 1 1/2 Miles Median 12 to 1 12 Miles 400' varies 4 - 10 Lanes Median 4 to 5 Miles Bikeway Capable° Sidewalks Yes 4' Yes Yes Yes Yes Yes Yes Yes No 4' 5' 5' 5 -8' 5' 5' 5' Back of Curb Maximum to Property Desirable Average; Line Daily Trips {ADT} 11' 500 10' 12' 12.5' 14.5'to 25.5' 15.5' 15' 17.5' 1,000 to 3000 2,000 to 5,500 4,000 to 8,500 1,000 to 3,000 15,000 to 24,000 20,000 10 32,000 30,000 to 48,000 19' 60,000 to 200,000 V Ditch or Drainage Bikeway ROW Pavement Lanes Shoulders Left Turn Per Side Capable Sidewalks 125' 150' 250' 44' 82' 76' 2 Lanes 4 Lanes 4 Lanes 10' 10' 10' Center Turn Median V -Ditch 40.5' 41.5' 48' Yes Yes Yes Urban Streets contain curb, gutter, and underground drainage. Rural streets do not include curbs, gutters or underground drainage. Bike routes require a minimum of 14 feet of useable lane width for shared motor vehicle /bicycle lanes. Widening may be required to accommodate bikeways. Require 5' sidewalks unless driveways will exist every 50' then allow 4' sidewalks. Sidewalks are not required in industrial areas. EXHIBIT 3. Revised Cross Section Table A., A A r„,xr c„ncyln,n A.,e.,d..\7 11_trnr khan Trancnnrtatinn Plan - Cmmnrehensive Plan.doc No No No EXHIBIT 4. South Loop Inset Map LEOENO rrny F.7, 1 leuleib alobityCertela 04lad Yulily6brtitla APPNOXINIIE l LES c Fb5.22 ima. 'a.7eu*do) gj,@.ryyj 6y,�3j. ,+1 Wis Redd l2f.n 92,2855 OA* $R28Eni:577 ,a Y-zs 1377 i:f?xy 4 7V°ae tres St 7., et 52k* x!iff24 97 9!taa City of Ct tipit EXHIBIT 5. High Speed Water Taxi Conceptual Route .. nvncxnnin ,.e...A.A1 11. 1rnIlrhanTrancnortationPlan- ComprehensivePlan.doc EXHIBIT 6. Conceptual Light Rail Route rpus Chr)di Bay Transpo action Oriented Development A project of the Bay Area art Growth Init i ht; lines Kte Tax Lines - -' R.€uctes- Jor Ground. 'ransser Potezttial \iaior Ceround, to t\ atet Stations Pcatettial Iaj r Ground to fir Station Existing Niaj ; tis Stations H \1 Ffl -DIR \Shared \I.PfA1 -DPV SVCS \2010 A¢enda\2 -23 -10 \Urban Transnortation Plan - Comprehensive Plan.doc Exhibit 7. Change of Future Land Use from Low Density Residential and Medium Residential to Commercial Future Land Use Area Use C Density Rest Medium Dens' Residential to Commercial fen FUTURE LAND USE tJ Agrievtn: airRural -AR - Tourist - TOR Esase Residensial - ER - Reeear ch+Bucinees Pare - RRP n Low Densiy Res. - LDR lei Light lndusaiai - Lf ® Med Densiy Rea.. - MDR 3 Heavy industrial - Ht - High Densiry Res_ - HDR Pubic Semi - Public - PSP Mobile Home -MH ® Park Vacant - VAC l Drainage Corridor - DC I� Profession! Office - PO [ i� I'9 Dredge Placereenr- DP - Carnmerciat - CGM ED Water Conservation• ?reserration - ES Transports on Pr an Almeria' is p3 Cot eccors ceame s Expressways Parkway ++ra+ Railroad A:gF S aft 11 NO ATTACHMENT FOR THIS ITEM 12 NO ATTACHMENT FOR THIS ITEM 13 NO ATTACHMENT FOR THIS ITEM 14 CITY COUNCIL AGENDA MEMORANDUM AGENDA ITEM: March 9, 2010 Public hearing to consider and Ordinance exempting Margaret Kelly Land, Tract 3, Lot 1 from payment of the wastewater lot or acreage fees under Section V.B.6.1) of the Platting Ordinance; requiring the owner /developer to comply with the specified conditions. ISSUE: The City Council, with the recommendation from the Planning Commission, may exempt an area from payment of lot or acreage fees if such area is determined by the Council to not likely be served by City wastewater services within the next fifteen (15) years. RECOMMENDATION: Planning Commission and Staff Recommendations (February 17, 2010): Approval of the request for wastewater acreage fee exemption for Margaret Kelly Land, Tract 3, Lot 1, subject to a Sanitary Sewer Connection Agreement which will include payment of wastewater acreage /lot, pro -rata and tap fees. REQUIRED COUNCIL ACTION: Approval and passage of an ordinance exempting Margaret Kelly Land, Tract 3, Lot 1 from payment of wastewater acreage fees and requiring the owner /developer to comply with the specified conditions. Attachments: Exhibit A — Exhibit B — Exhibit C Exhibit D Exhibit E — Exhibit F — Background Information Location Map — Greenwood Wastewater Master Plan — Ordinance Letter from Developer Sanitary Sewer Connection Agreement Juan Perales, /Jr., P.E. Assistant City Manager Department of Development Services JohnnyP ©cctexas.com (361) 826 -3828 H: \PLN -DIR \SPECIAL SERVICES \PLATS \EXEMPTION \MARGARET KELLY LAND TRACT 3, LOT 1. COUNCIL AGENDA MEMO.DOC AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: Section V.B.6.I.) of the Platting Ordinance states the following: "No lot or acreage fee must be paid if such land for which the fees are paid lies within an area exempted by the City Council from the payment of such fees. Such exempted areas shall be those determined by the City Council to not likely be served by City wastewater services within the next fifteen (15) years." In accordance with Section V.B.6.1), the developer, Martin Hameka, is requesting exemption from wastewater acreage fees for a tract of land known as Margaret Kelly Land, Tract 3, Lot 1. The property is located north of Old Brownsville Road (FM 665) and south of South Padre Island Drive (SH 358). The property is being platted to allow for the development of the site. The area is located within the Greenwood Wastewater Treatment Plant Master Plan area. The Greenwood Wastewater Treatment Plant Master Plan Service Area A was adopted by City Council in October 2006. According to the Master Plan, Lot 1 is to be served by a proposed 10 -inch gravity line to be located along Old Brownsville Road. The 10 -inch line would extend northeast along Old Brownsville Road approximately 1,800 feet to a proposed manhole at West Point Road. A proposed 15 -inch wastewater line would extend west from the manhole approximately 4,000 feet to the proposed Old Brownsville Lift Station. The proposed lift station would send the wastewater via a 16 -inch force main to a proposed gravity line on Holly Road at Bush Drive. (See Exhibit C) The nearest existing wastewater line is located approximately 5,200 feet to the southwest along Old Brownsville Road. However, the subject property is in a different subarea from the existing wastewater line. The wastewater system mentioned above that is in accordance with the adopted Master Plan is not in place. The first item that needs to occur is the construction of the Old Brownsville Lift Station. Currently, there are no funds available to construct the proposed lift station, nor are there funds available to reimburse the developer to construct the planned lift station and wastewater lines. The proposed improvements are not currently included in either the short or long range Capital Improvement Program. It is Staff's determination that wastewater services will not be available to the area within the 15 -year timeframe. However, to protect the City should wastewater services become available to the property, a Sanitary Sewer Connection Agreement would be executed that would require the development to connect to the public wastewater line within twelve (12) months of the line becoming available and pay the applicable wastewater acreage, pro -rata and tap fees at that time. For reference, the amount of the Wastewater Acreage fees are $7,229.43, based on the current rate of $1,443.00 per acre. Planning Commission Recommendation (02/17/10): Approval to exempt Margaret Kelly Land, Tract 3, Lot 1 from the wastewater acreage fees, subject to a Sanitary Sewer Connection Agreement to include payment of the wastewater acreage /lot, pro -rata and tap fees. EXHIBIT A H:\PLN- DIR\SPECIAL SERVICES\PLATS \EXEMPTION \MARGARET KELLY LAND \TRACT 3, LOT 1.000NCIL AGENDA MEMO BACKGRD.DOC micimem Miles 0 0.0501 0.2 Legend ?~� I PLANNING.CITYLIMITS Title: MARGARET KELLY FARM LOTS Printing pate. 2/2129i0 File hl PLN- GIRISHAREGG IS Projects 4MiguelNIARGAPET KELLY FARM LOTS rhrd Illustrative purposes only Prepared By KAB Coordinate. System NAp 1933 StatePlane Texas South FIRS 4205F eet :Ci rrcy of Corpus Christi i i peveiopreent Services E J LOCATION MAP EXHIBIT B EXHIBIT C Page 1 of 3 ORDINANCE EXEMPTING MARGARET KELLY LAND, TRACT 3, LOT 1, SUBDIVISION FROM THE PAYMENT OF WASTEWATER LOT OR ACREAGE FEES UNDER SECTION V. B. 6. I) OF THE PLATTING ORDINANCE; REQUIRING THE OWNER/DEVELOPER TO COMPLY WITH THE SPECIFIED CONDITIONS; AND DECLARING AN EMERGENCY. WHEREAS, Margaret Kelly Land, Tract 3, Lot 1 ( "Subdivision ") is located north of Old Brownsville Road (FM 665), southwest of South Padre Island Drive (SH 358), and is not currently served by the City wastewater system; WHEREAS, the owner /developer has submitted a written request that the Subdivision be exempt from the payment of wastewater lot or acreage fees based on the determination that it is not likely that the area will be served by the City wastewater system within the next fifteen (15) years; WHEREAS, based on Section V. B. 6. I) of the Platting Ordinance of the City of Corpus Christi, City Staff and the Planning Commission recommend that City Council find that it is not likely that the area will be served by the City wastewater system within the next fifteen (15) years and that the Subdivision be exempt from the payment of wastewater lot or acreage fees at this time. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. It is determined that the Margaret Kelly Land, Tract 3, Lot 1 ( "Subdivision ") is located north of Old Brownsville Road (FM 665), southwest of South Padre Island Drive (SH 358), is not likely to be served by city wastewater service within the next fifteen (15) years and is exempt from the payment of wastewater lot or acreage fees at this time, pursuant to Section V. B. 6. I) of the Platting Ordinance of the City of Corpus Christi. SECTION 2. The exemption from the payment of wastewater lot or acreage fees, pursuant to Section V. B. 6. I) of the Platting Ordinance of the City of Corpus Christi, is conditioned upon owner /developer compliance with the following: a. That the owner /developer of the Subdivision enter into a Sanitary Sewer Connection Agreement with conditions (copy of Agreement attached as Exhibit «A„ b. That the Sanitary Sewer Connection Agreement requires payment of the wastewater lot or acreage, pro -rata, and tap fees at the rate in effect at the time of connection to City wastewater. EXHIBIT D Page 2 of 3 c. That the Sanitary Sewer Connection Agreement be recorded in the Office of the Nueces County Clerk's Office prior to the recordation of the plat. d. That the Sanitary Sewer Connection Agreement and covenants contained in the agreement are covenants running with the land. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the 9th day of March, 2010. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: Deborah Walther Brown First Assistant City Attorney For City Attorney Joe Adame Mayor EXHIBIT D Page 3 of 3 Corpus Christi, Texas Day of , 2010 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 G. Leal John E. Marez Nelda Martinez Mark Scott EXHIBIT D Miguel Saldana City of Corpus Christi, Sr. City Planner 2406 Leopard Corpus Christi, Texas 78408 Re: Margaret Kelly Land, Tract 3, Lot 1 Mr. Saldana: This letter is to request a determination of exemption of waste water distribution acreage fees for the above referenced plat. The request is made in accordance with Section V. B. 6. I) of the City of Corpus Christi Platting Ordinance. Included with this letter is a check for $60.00 for this request. Thank you for your assistance with this matter. Sincerely, Martin Hameka 2010 EXHIBIT E SANITARY SEWER CONNECTION AGREEMENT STATE OF TEXAS § COUNTY OF NUECES § THIS AGREEMENT is entered into between the City of Corpus Christi, a Texas Home -Rule Municipal Corporation, P.O. Box 9277, Corpus Christi, Texas 78469 -9277, hereinafter called "City" and Martin Hameka, P. O. Box 81511, Corpus Christi, Texas 78468, hereinafter called "Developer /Owner ". WHEREAS, Developer /Owner in compliance with the City's Platting Ordinance, has submitted the plat for Margaret Kelly Land, Tract 3, Lot 1, hereinafter called "Development ", (Exhibit 1); and, WHEREAS, wastewater construction plans and construction are normally a requirement of the plat, and WHEREAS, the Development Services' Engineer has determined that sanitary sewer service is not reasonably available within reasonable proximity to the site; WHEREAS, wastewater construction is not economically feasible due to the unavailability of existing wastewater facilities within reasonable proximity to the site; WHEREAS, wastewater construction plans and construction would impose an undue financial hardship on both the Developers or. Owners, or on either of them; and WHEREAS, City agrees to allow Developers and Owners to record the plat of the Development Property without initial construction of wastewater collection lines; NOW THEREFORE, for the consideration set forth hereinafter, the City and Developer /Owner agree as follows: 1. The owner of each individual lot agrees for itself, its successors, transferees, and assigns, as follows: a. To connect to City sewer within 12 months of the installation of a wastewater manhole at the frontage of the property or the installation of a collection line along the frontage of the property; b. To pay water or wastewater lot or acreage fees, whichever is PAGE 1 OF 4 greater, at the rate in effect at the time of connection, if wastewater services are available within fifteen (15) years from the recording date of the plat; c. To pay applicable wastewater pro -rata and tap fees, fees for which there is no legal exemption, at the rate in effect at the time of connection to City wastewater; d. To not subdivide the Development no further than what is shown on the Plat of Margaret Kelly Land, Tract 3, Lot 1, attached as Exhibit 1. The further subdivision of the Development voids this agreement. 2. City agrees: a. To allow the property to use wastewater treatment as approved by the City /County Health Department. b. To allow the Owner to record plat and not require wastewater line construction. 3. INDEMNIFICATION: DEVELOPER/OWNER, COVENANTS TO FULLY INDEMNIFY, SAVE AND HOLD HARMLESS THE CITY OF CORPUS CHRISTI, ITS OFFICERS, EMPLOYEES, AND AGENTS, ( "INDEMNITEES ") AGAINST ANY AND ALL LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS SUITS AND CAUSES OF ACTION OF ANY NATURE WHATSOEVER ASSERTED AGAINST OR RECOVERED FROM CITY ON ACCOUNT OF INJURY OR DAMAGE TO PERSON INCLUDING, WITHOUT LIMITATION ON THE FOREGOING, WORKERS COMPENSATION AND DEATH CLAIMS, OR PROPERTY LOSS OR DAMAGE OF ANY OTHER KIND WHATSOEVER, TO THE EXTENT ANY INJURY, DAMAGE, OR LOSS MAY BE INCIDENT TO, ARISE OUT OF, BE CAUSED BY, OR BE IN ANY WAY CONNECTED WITH, EITHER PROXIMATELY OR REMOTELY, WHOLLY OR IN PART, THE DEVELOPER/OWNER'S FAILURE TO COMPLY WITH ITS OBLIGATIONS UNDER THIS AGREEMENT OR TO PROVIDE CITY WASTEWATER SERVICE TO THE MARGARET KELLY LAND, TRACT 3, LOT 1, INCLUDING INJURY, LOSS, OR DAMAGE CAUSED BY THE SOLE OR CONTRIBUTORY NEGLIGENCE OF THE INDEMNITEES OR ANY OF THEM, REGARDLESS OF WHETHER THE INJURY, DAMAGE, LOSS, VIOLATION, EXERCISE OF RIGHTS, ACT, OR OMISSION IS CAUSED OR IS CLAIMED TO BE CAUSED BY THE CONTRIBUTING OR CONCURRENT NEGLIGENCE OF INDEMNITEES, OR ANY OF THEM, BUT NOT IF CAUSED BY THE SOLE NEGLIGENCE OF INDEMNITEES, OR ANY OF THEM, UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR ENTITY, AND INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND ATTORNEYS FEES, WHICH ARISE, OR ARE CLAIMED TO ARISE, OUT OF OR IN CONNECTION WITH THE ASSERTED OR RECOVERED INCIDENT. PAGE2OF4 4. The agreement and covenant herein are covenants running with the land, and must be filed in the Office of the Nueces County Clerk Office, and shall be binding on Developer /Owner, its successors and assigns, and shall inure to the benefit of the parties hereto and their respective heirs, successors, and assigns and to third party beneficiaries from and after the date of execution. 5. Agreement and terms of this agreement will terminate upon connection to City wastewater and payment of appropriate fees. EXECUTED IN DUPLICATE originals, this day of , 2010. DEVELOPER/OWNER: Martin Hameka P. O. Box 81511 Corpus Christi, TX 78468 Martin Hameka Owner STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on Hameka, Owner. APPROVED: March , 2010 By: , 2010, Martin Juan Perales, Jr., P.E., Development Services Engineer PAGE3OF4 Notary Public, State of Texas APPROVED: March , 2010 By: R. Jay Reining First Assistant City Attorney For City Attorney PAGE4OF4 LOT 1, TRACT 3 MARGARET KELLY LAND BMA AIERATCIFTCM TRACT; MAMARET KELLY UFO N RECORDED IN VOLUME It PACE 40 (11.14110.7 ) E OF THE PROPERTY AS RECORDED *IDOL ISM P.44'. YD. 1040 P. MOS VOL 18• P. MO 61.74140T CORP1BCNOFR. NUECEB COUSITY, TEEM 1. YAC RECOMMITS AS 091C1FDME A MOMNEWNT Of 042010/0 CYINDI AND SMACTTOCOMM M TNEw.cMYORME Z. fOMB1 WORM SONSATAA LOT CCRIRS ,P.C.6.P.T.14 ROCK DOOM* RR MAEM OTMSSWSEf ORO a AG OEYURM AMISS O WO Ss. 000111FWNIF MOW M10 YA EMOSSYMDASM6l T LL. MOTUMUM UE UF.06110101 DOUR MEMO DO DOOM IFMMDf MONET 4L 00101MICFNT011FE O ROADWAY 0.0 OND•ROCKCOOMA D.N0U01F6DELNRF TOBO1Y UT S•MO SO IAGDPINOVIIIfi MAY 13 1m PLANNING COMMISSION 4. TM ROPINYL1UWMNEL0WZM EC.COIMRNFM1E0M. PAM MOM. CID MODERN 00164 TOM. 041100771•0 AMD N NOt VATO M MOAT ROOD RAM 0. 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STATE OF TEARS COUNTY OF RODEO 110 FOAL MT CV M MERM 70001160 PROPERTY MS APPROVED M M PUN*OCDMMOW OF TES COT OF COMM DOME. 1MOW P80MOEDMONOER TM APPROVAL IWO SE ROOM NO MR MUSS TM RAT EE RAM DAM M OWOSS '0./I SKNMDrt hS tlEARIO DOEDTEMINF O TOP MR 00ETANY. FARTCE 0000FAV1CON STAMM. TEARS COUNTY OF M1ECE8 AMMO NY THE CORPISCHROONUFCE3 COUNTY HEALTH DEPARTMENT. 'Ha M OP HM. ANY PRIVATE WATER SLOPPY APO/0R SEINE SYSTEM MEAL Be APPROVED SY 110 CORPUS W MISILNUECES COUNTY MALT/ 0FP0R*IANT PRIOR TO IIW TMIATNM ham I44.I4ENCI®1 STATE OF TAMS COIMIY OF WOES YM FOAL MT OP M MAIM 0ESDIMEDPNOPEOYMMOY4 M M OPALTO®IT Of CMINOPLME MRNCEI O M CITY OF ORPO CI1MR TOM. 1M016 ROW DM OSSOMMORSINVICOMMINEM JUAN PSOLOS PR STATE OF 11E461 COUNTY OF MACES 4 DRAM T. EA01RACAR OFM077014CDMT,x DO FOR MECES COMOYTMOS NNAMT COMO MT M MEMOS 118116•ENT 014100 M WY OF OM MM ITS MTI11CAROF NOMNDGION GPX1R Rsat E1M OM OF MOD ATE O'RODI_FMO DAY OEEORO WLUE_.PNE_RL•NDrJ YAWN MY 111410 ODSOALOMONO COMM DRAWL IRAS. 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ENGINEERING AND LAND SURVEYING 3758 BRATTON ROAD CORPUS CHRISTI, TEXAS 78413 381.854.8202 FAX: 361.853.4666 02!04/09 RV & DB 07 -0512 FXHIRIT 1 Page 1 of 3 ORDINANCE EXEMPTING MARGARET KELLY LAND, TRACT 3, LOT 1, SUBDIVISION FROM THE PAYMENT OF WASTEWATER LOT OR ACREAGE FEES UNDER SECTION V. B. 6. I) OF THE PLATTING ORDINANCE; REQUIRING THE OWNER/DEVELOPER TO COMPLY WITH THE SPECIFIED CONDITIONS; AND DECLARING AN EMERGENCY. WHEREAS, Margaret KeIIy Land, Tract 3, Lot 1 ( "Subdivision ") is located north of Old Brownsville Road (FM 665), southwest of South Padre Island Drive (SH 358), and is not currently served by the City wastewater system; WHEREAS, the owner /developer has submitted a written request that the Subdivision be exempt from the payment of wastewater lot or acreage fees based on the determination that it is not likely that the area will be served by the City wastewater system within the next fifteen (15) years; WHEREAS, based on Section V. B. 6. I) of the Platting Ordinance of the City of Corpus Christi, City Staff and the Planning Commission recommend that City Council find that it is not likely that the area will be served by the City wastewater system within the next fifteen (15) years and that the Subdivision be exempt from the payment of wastewater lot or acreage fees at this time. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. It is determined that the Margaret KeIIy Land, Tract 3, Lot 1 ( "Subdivision ") is located north of Old Brownsville Road (FM 665), southwest of South Padre Island Drive (SH 358), is not likely to be served by city wastewater service within the next fifteen (15) years and is exempt from the payment of wastewater lot or acreage fees at this time, pursuant to Section V. B. 6. I) of the Platting Ordinance of the City of Corpus Christi. SECTION 2. The exemption from the payment of wastewater lot or acreage fees, pursuant to Section V. B. 6. I) of the Platting Ordinance of the City of Corpus Christi, is conditioned upon owner /developer compliance with the following: a. That the owner /developer of the Subdivision enter into a Sanitary Sewer Connection Agreement with conditions (copy of Agreement attached as Exhibit "A "). b. That the Sanitary Sewer Connection Agreement requires payment of the wastewater lot or acreage, pro -rata, and tap fees at the rate in effect at the time of connection to City wastewater. Margaret Kelly Land Tract 3, Lot 1.Ordinance 03022010 Page 2 of 3 c. That the Sanitary Sewer Connection Agreement be recorded in the Office of the Nueces County Clerk's Office prior to the recordation of the plat. d. That the Sanitary Sewer Connection Agreement and covenants contained in the agreement are covenants running with the land. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the 9th day of March, 2010. ATTEST: Armando Chapa City Secretary APPROVED: R. J ring First Assistant City Attorney For City Attorney Margaret Kelly Land Tract 3, Lot 1.Ordinance 03022010 CITY OF CORPUS CHRISTI Joe Adame Mayor Page 3 of 3 Corpus Christi, Texas Day of , 2010 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 G. Leal John E. Marez Nelda Martinez Mark Scott Margaret Kelly Land Tract 3, Lot 1.Ordinance 03022010 15 NO ATTACHMENT FOR THIS ITEM 16 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: March 9, 2010 A. A resolution ratifying the acceptance of a funding award in the amount of $1,581,737 from the Department of Housing and Community Affairs effective September 1, 2009 and authorizing the City Manager or his designee to execute all related documents for the Weatherization Assistance Program. B. An ordinance appropriating $1,581,737 in the No. 1059 Grant Fund for the Weatherization Assistance Program (WAP); and declaring an emergency. ISSUE: The City of Corpus Christi, as a "Criteria Based Awards" subrecipient, was informed by the Texas Department of Housing and Community Affairs of funding eligibility for the WAP. A "Criteria Based Awards" pool is an allocation of $101,873,523 available to cities whose populations exceed 75,000 persons (2000 Census). The approved award amounts are based on the poverty populations in each city (2000 Census). PREVIOUS COUNCIL ACTION: On June 16, 2009, City Council approved a resolution to submit a funding application to the Texas Department of Housing and Community Affairs in the amount of $3,039,667 for the Weatherization Assistance Program and execute all related documents. REQUIRED COUNCIL ACTION: Ratify, accept and appropriate $1,581,737 for the WAP. FUTURE COUNCIL ACTION: Should the City of Corpus Christi be considered as a performing subrecipient, an additional $1,581,737 will be allocated and appropriated for the WAP. CONCLUSION AND RECOMMENDATION: Staff recommends the authorization to accept and appropriate $1,581,737 from the Texas Department of Housing and Community Affairs for the WAP and execute all related documents. Eddie Ortega Neighborhood Services Director Eddieo @cctexas.com 361.826.3234 ADDITIONAL SUPPORT MATERIAL Background Information BACKGROUND INFORMATION The Texas Department of Housing and Community Affairs (TDHCA) announced the expected distribution and use of $297,507,285 (amount includes all administrative funds) through the Weatherization Assistance Program ( "WAP "), which the U.S. Department of Energy ( "DOE ") is providing to the State of Texas from the American Recovery and Reinvestment Act ( "ARRA ") of 2009. ELIGIBLE USE OF FUNDS • Energy audit (a review of your home's energy efficiency, which identifies where air leaks may be occurring, inefficient appliances, etc.) • Installation of weatherization measures to increase energy efficiency of a home (structure must be able to benefit from being weatherized) • The weatherization work consists of caulking; weather - stripping; adding ceiling, wall, and floor insulation; patching holes in the building envelope; duct work, and tune -up, repair or replacement of energy inefficient heating and cooling systems. • The weatherization measures to be installed must meet specific energy - savings goals. The WAP is designed to increase the energy efficiency of dwellings owned or occupied by low- income persons, reduce their total residential expenditures, and improve their health and safety, especially low income persons who are particularly vulnerable such as the elderly, persons with disabilities, families with young children, high residential energy users, and households with high energy burden. The type of weatherization that a household may receive is contingent upon a household's income eligibility, a comprehensive assessment of the household's energy use, and the availability of weatherization funds. These funds are distributed by TDHCA. TDHCA will coordinate activities in accordance with DOE -WAP guidelines. Households directly assisted with WAP funds must qualify by income and earn no more than 200% of the Federal Poverty Income Guidelines (Table 1). Table 1 * C.ik;e..i 1,...k n,,.e The 2009 Income Limits for DOE and LIHEAP Energy Assistance Programs (Effective September 3, 2009) * 200% of Federal Poverty Persons in family Income Guidelines 5 6 7 $74,020 For families with more than 8 persons, add $7,480 for each additional person 8 Once the above income provisions are met, then priority is given to: • Roughly equivalent to extremely low- to very low- income households (0 -60 percent of the area median family income); • Households with small children (under the age of 6); • Households with an elderly resident; • Households with a disabled resident; • Households with the highest energy cost and lowest income; and • Households with high residential energy use. COSTS PER UNIT The City of Corpus Christi will provide weatherization program services sufficient to expend the contract funds during the contract term. ARRA costs per unit, excluding health and safety expenses, shall not exceed $6,500 without prior written approval from TDHCA. WAP services will be provided to owner occupied units as well as rental units. INELIGIBLE USE OF FUNDS WAP funds may not be used to purchase or improve land, or for the purchase of construction or permanent improvement of any building or other facility. Any entity that receives funds from this proposal assumes responsibility for planning, coordination, and developing WAP activities. The funds shall not be used for the provision of services or the employment or assignment of personnel to support the following activities: any partisan or non - partisan political activity or any political activity in an election for public or party office; any activity to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any such election; or any voter registration activity. Any other uses or activities deemed ineligible by state or federal rule would also be ineligible. Before the effective date of the Texas WAP contract, the Subrecipient that ultimately receives an award of Texas WAP funds, (subrecipient) may not incur nor be reimbursed for travel costs, as provided for with Administration funds, related to implementation training required by the Department as a condition of receiving a WAP award and Contract. There are no allowances for pre -award costs or activities, including but not limited to legal, procurement, or administrative fees. Additional limitations as defined in ARRA and DOE WAP Notices will be strictly enforced. WAP CRITICAL PATH SCHEDULE Table 2 Date Task February 9 Received Contract from TDHCA February 27 Initiate WAP Wait List @ Green Fair March 9 City Council Action /Approval /Authorization to execute WAP contract Marchl0 Send AD to local paper procuring for Contractors /Assessors March 14 Publish AD in Caller Time March 22 RFP procuring for Contractors /Assessors due back to NSD /CD March 26 Complete review /selection process for Contractors /Assessors March 31 Schedule Pre - Construction meeting with TDHCA April 5 Begin WAP and coordinate training for contractors August 30, 2011 WAP ends ADMINISTRATION DUE allows 5% of funds to be utilized for administration of the WAP. Administrative costs incurred by the City of Corpus Christi in performing this contract are to be based on actual programmatic expenditures and shall be allowed up to the amount in the administration budget approved by the TDHCA (see Table 3 for budget allocations). Table 3 Budget for Available Allocations CATEGORIES FUNDS Administration $75,992 Liability / Pollution Occurrence Insurance $ 7,767 Fiscal Audit $ 1,000 Materials / Program Support / Labor $1,148,060 Health and Safety $287,015 SUB -TOTAL $1,519,834 Training and Technical Assistance $ 61,903 TOTAL* $1,581,737 *An additional $1,581,737 (approximately) will be allocated to the City of Corpus Christi if considered a "Performing" Subrecipient. Benchmarks have not been provided thus far on what constitutes a "Performing" Subrecipient. CONCLUSION AND RECOMMENDATION: Staff recommends the authorization to accept and appropriate $1,581,737 from the Texas Department of Housing and Community Affairs for the WAP and execute all related documents. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NUMBER. 16090000703 FOR THE THE AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) (CFDA# 81.402) SECTION 1. PARTIES TO CONTRACT This contract (hereinafter "Contract ") is made by and between the Texas Department of Housing and Community Affairs, an agency of the State of Texas (hereinafter the "Department ") and City of Corpus Christi (hereinafter the "Subrecipient "). The term of this Contract shall be for the period identified under Attachment A — Budget and Performance Document (hereinafter the "Attachment A "). SECTION 2. CONTRACT TERM The period for performance of this contract, unless earlier terminated, is September 01, 2009 through August 31, 2011 (hereinafter the "Contract Term "). SECTION 3. DESIGNATED CONTRACTOR CONTACTS Subrecipient shall designate, in writing, at the time Subrecipient executes this Contract, one or more responsible and qualified individuals as points of contact with the Department to maintain a flow of current information relating to the receipt, deployment, reporting, management and use of funds received under this Contract. SECTION 4. SUBRECIPIENT PERFORMANCE Subrecipient shall, on an equitable basis throughout its service area, develop and implement a Weatherization Assistance Program (WAP) in accordance with the budget described in Attachment A of this Contract. Subrecipient shall develop and implement the WAP to assist in achieving a prescribed level of energy efficiency in the dwellings of low- income persons. WAP services will be provided to owner occupied units as well as rental units. Priority will be given to households with elderly, persons with disabilities, households with young children that are age five (5) or younger, and/or households with a high energy burden and households with high energy consumption. Subrecipient shall implement WAP in accordance with the provisions of Part A of the Energy Conservation in Existing Buildings Act of 1976, as amended (42 U.S.C. §6861 et seq.); the U.S. Department of Energy (DOE) regulations codified in 10 C.F.R. Parts 440 and 600; any applicable Office of Management and Budget (OMB) Circulars; the Texas ARRA State Plan; State weatherization regulations; Texas Administrative Code: 10 TAC §5.10— §5.20; §5.501 — §5.508; §5.521- §5.532; and §5.601 — §5.609. The International Residential Code; International Energy Conservation Code; or in accordance with jurisdictions authorized by State law to adopt later editions; and the terms of this Contract. SECTION 5. DEPARTMENT FINANCIAL OBLIGATIONS A. In consideration of Subrecipient's satisfactory performance of this Contract, Department shall reimburse Subrecipient for the actual allowable costs incurred by Subrecipient in the amount specified in Attachment A of this Contract. B. Department's obligations under this Contract are contingent upon the actual receipt by Department of adequate federal funds. If sufficient funds are not available, Department shall notify Subrecipient in writing within a reasonable time after such fact is determined. Department shall then terminate this Contract and will not be liable for the failure to make any payment to Subrecipient under this Contract. C. Department is not liable for any cost incurred by Subrecipient which: (1) is incurred to weatherize a dwelling unit which is not an eligible dwelling unit as defined in 10 C.F.R. §440.22; (2) is incurred to weatherize a dwelling unit which is designated for acquisition or clearance by a federal, state, or local program within twelve months from the date weatherization of the dwelling unit is scheduled to be completed; (3) is incurred to weatherize a dwelling unit previously weatherized with WAP funds, except as provided for in 10 C.F.R. §440.18(e)(2); Page 1 of 16 (4) is for Subrecipient's administrative costs incurred in excess of the maximum limitation set forth in Section 9 of this Contract; (5) is not incurred during the Contract term; (6) is not reported to Department on a monthly ARRA expenditure report and /or a monthly ARRA performance report, within sixty (60) days of the termination of the Contract term; (7) is subject to reimbursement by a source other than Department; (8) is made in violation of any provision of this Contract or any provision of federal or state law or regulation, including, but not limited to, those enumerated in this Contract; or (9) is used for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool. D. Subrecipient shall refund, within fifteen (15) days of Department's request, any sum of money paid to Subrecipient which Department determines has resulted in an overpayment or has not been spent in accordance with the terms of this Contract. Department may offset or withhold any amount otherwise owed to Subrecipient under this Contract against any amount owed by Subrecipient to Department arising under this or any other contract between the parties. E. The Department reserves the right to evaluate the performance and expenditures on this contract and transfer funds at the sole discretion of the Department. Underperformance under this contract may result in subsequent deobligation of funds from this contract. SECTION 6. METHOD OF PAYMENT /CASH BALANCES A. Each month, Subrecipient may request an advance payment of WAP funds under Attachment A by submitting a monthly expenditure Report to Department (through the electronic reporting system) at its offices in Travis County, Texas. Subrecipient must maintain and follow written procedures to minimize the time elapsing between the transfer of funds from Department and the disbursement of such funds by Subrecipient. B. Subrecipient's requests for advances shall be limited to the minimum amount needed to perform contractual obligations and timed to be in accordance with actual, immediate cash requirements of the Subrecipient in carrying out the purpose of this Contract. The timing and amount of cash advances shall be as close as administratively feasible, not to exceed a 30 day projection of the actual disbursements by the Subrecipient to direct program costs and the proportionate share of any allowable indirect costs. C. Subsection 4(A) notwithstanding, Department reserves the right to use a cost reimbursement method of payment for all funds if (1) Department determines that Subrecipient has maintained excess cash balances; (2) Department identifies any deficiency in the cash controls or financial management system maintained by Subrecipient; (3) Department determines that a cost reimbursement method would benefit the program; (4) Department's funding sources require the use of a cost reimbursement method; or (5) Subrecipient fails to comply with any of the reporting requirements of Section 10. D. All funds paid to Subrecipient under this Contract are paid in trust for the exclusive benefit of the eligible recipients of the weatherization assistance program and for the payment of the allowable expenditures identified in Section 9 of this Contract. SECTION 7. COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS Except as expressly modified by law or the terms of this Contract, Subrecipient shall comply with the cost principles and uniform administrative requirements set forth in the Uniform Grant and Contract Management Standards, 1 T.A.C. § 5.141 et seq. (the "Uniform Grant Management Standards "); all references therein to "local government" shall be construed to mean Subrecipient. Uniform cost principles for local govemments are set forth in OMB Circular No. 87, and for non - profits in OMB Circular No. 122. Uniform administrative requirements for local governments are set forth in OMB Circular No. 102 and for non - profits in OMB Circular No. 110. Page 2 of 16 SECTION 8. PREVAILING WAGES AND RATES PAID TO SUBRECIPIENTS AND SUBCONTRACTORS Notwithstanding any other provision of law and in a manner consistent with other provisions of the American Recovery and Reinvestment Act of 2009, all laborers and mechanics employed by Subrecipient and subcontractors on projects funded directly by or assisted in whole or in part by and through the federal govemment pursuant to the American Recovery and Reinvestment Act of 2009 shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. All implementing regulations, notices, guidance and any other requirements issued by the federal government related to Subrecipient's performance under this Contract. SECTION 9. USE OF ALCOHOLIC BEVERAGES None of the funds provided under this Contract shall be used for the payment of salaries to any employee who uses alcoholic beverages while on active duty. No funds provided under this Contract shall be used for the purchase of alcoholic beverages. SECTION 10. TERMINATION AND SUSPENSION A. Department may terminate this Contract, in whole or in part, at any time Department determines that there is cause for termination. Cause for termination includes but is not limited to Subrecipient's failure to comply with any term of this Contract, the Texas Administrative Code: 10 TAC §5.17 (Sanctions and Contract Close Out), any state weatherization regulation and the WAP State Plan. Department shall notify Subrecipient in writing no less than thirty (30) days prior to the date of termination. B. Nothing in this Section shall be construed to limit Department's authority to withhold payment and immediately suspend Subrecipient's performance under this Contract if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other serious deficiencies in Subrecipient's performance. Suspension shall be a temporary measure pending either corrective action by Subrecipient or a decision by Department to terminate this Contract. C. Department shall not be liable for any costs incurred by Subrecipient after termination or during the suspension of this Contract. The termination or suspension of this Contract notwithstanding, Subrecipient shall not be relieved of any liability for damages due to Department by virtue of any prior or future breach of this Contract by Subrecipient. Department may withhold any payment otherwise due to Subrecipient until such time as the exact amount of damages owed to Department by Subrecipient is determined and paid. SECTION 11. ALLOWABLE EXPENDITURES • A. The allowability of Subrecipient's costs incurred in the performance of this Contract shall be determined in accordance with the provisions of Section 5 and the regulations set forth in 10 C.F.R. §440.18, subject to the limitations and exceptions set forth in this Section. B. To the maximum extent practicable, Subrecipient shall utilize funds provided under this Contract for the purchase of weatherization materials. All weatherization measures installed must be listed on a DOE approved State of Texas Priority List or have an approved State of Texas Energy Audit savings -to- investment ratio (SIR) of one or greater unless otherwise indicated. Weatherization measures installed shall begin with those having the greatest SIR (on approved State of Texas Energy Audit) and proceed in descending order to the measures with the smallest SIR or until the maximum allowable per unit expenditures are achieved. Subrecipient shall weatherize eligible dwelling units using only weatherization materials which meet or exceed the standards prescribed by DOE in 10 C.F.R. Part 440, Appendix A, State of Texas adopted International Residential Code (IRC) or in accordance with jurisdictions authorized by State law to adopt later editions. Allowable WAP expenditures under Attachment A include: (1) purchase and delivery of weatherization materials as defined in 10 C.F.R. §440.3, but not to include storm doors; (2) labor costs for doors, primary windows and storm windows that will result in approved energy savings with SIR of one or greater in accordance with 10 C.F.R. §440.19; Page 3 of 16 (3) weatherization materials and labor for heating and cooling system tune ups, repairs, modification, or replacements if such will result in improved energy efficiency as demonstrated by SIR of one or better in the approved State of Texas Energy Audit and, whenever available, heating and cooling systems must have an Energy Star rating; (4) transportation of weatherization and repair materials, tools, equipment, and work crews to a storage site and to the site of weatherization work; (5) maintenance, operation, and insurance of vehicles used to transport weatherization materials; (6) maintenance of tools and equipment; (7) purchase or lease of tools, equipment, and vehicles (purchase of vehicles must be approved in advance by Department and DOE); (8) employment of on -site supervisory personnel; (9) storage of weatherization materials, tools, and equipment; (10) incidental repairs (such as repairs to roofs, walls, floors, and other parts of a dwelling unit) if such repairs are necessary for the effective performance or preservation of weatherization measures (If incidental repairs are necessary to make the installation of the weatherization measures effective, the cost of incidental repair measures charged to WAP funds awarded under Attachment A shall not exceed the cost of weatherization measures charged to WAP funds and shall have a whole house SIR of one (1) or greater on the approved State of Texas Energy Audit.); (11) allowable health and safety measures; and (12) allowable base load reduction measures. Health and Safety funds not expended may be moved to the labor, materials, and program support category. These changes will require a contract action; therefore, Subrecipient must provide written notification to the Department at least 90 days prior to the end of the Contract term before these funds can be moved. C. Administrative costs incurred by Subrecipient in performing this Contract are to be based on actual programmatic expenditures and shall be allowed up to the amount outlined in Attachment A. Allowable administrative costs may include reasonable costs associated with Subrecipient's administrative personnel, travel office space, equipment, and supplies which are necessary for the administration of WAP. Administrative costs are earned based upon the allowable percentage of total allowable expenditures, excluding the allowance for Department / DOE Training Travel or special equipment purchases. Subrecipient may use any or all of the funds allowed for administrative purposes under this Contract for the purchase and delivery of weatherization materials. These changes will require a contract action; therefore, Subrecipient must provide written notification to the Department at least 90 days prior to the end of the Contract term before these funds can be moved. D. The cost of liability insurance for the weatherization program for personal injury and for property damage, not to exceed Two Thousand Dollars ($2,000.00) shall be an allowable WAP expenditure under Attachment A. Subrecipient may request in writing a waiver of the limit on liability insurance. The waiver request must provide price quotes from at least three (3) insurance carriers. If subrecipient is allowed to waive the liability insurance limit, amounts in excess of the $2,000 may be charged to the administrative or program support category. The liability insurance category has increased to enable subrecipient to purchase pollution occurrence insurance in addition to the general liability insurance. Generally, regular liability insurance policies do not provide coverage for potential effects of many health and safety measures, such as lead disturbances and other pollution occurrence items. Subrecipient should review existing policies to ensure that lead is covered and if not, secure adequate coverage for all units to be weatherized. Subrecipients' insurance must cover the pollution occurrence insurance coverage for their independent contractors or the independent contractors must obtain the coverage. E. Fiscal audit expenses for the weatherization program not to exceed One Thousand Dollars ($1,000.00) shall be allowed under Attachment A, subject to Section 15. F. To the maximum extent practicable, Subrecipient shall secure the services of volunteers to weatherize dwelling units under the direction of qualified supervisors. Page 4 of 16 SECTION 12. USE OF AMERICAN IRON, STEEL, AND MANUFACTURED GOODS Contractor shall not use any of the funds provided pursuant to this Contract for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United states except as provided in Section 1605 of the American Recovery and Reinvestment Act of 2009. SECTION 13. RECORD KEEPING REQUIREMENTS A. Subrecipient shall comply with the record keeping requirements set forth at 10 C.F.R. §440.24 and with such additional record keeping requirements as specified by Department. B. For each dwelling unit weatherized with funds received from WAP under this Contract, Subrecipient shall maintain a file containing the following information: (1) completed Application for Weatherization Services indicating the ages of the residents, presence in the household of children age five (5) or younger, elderly persons (60 years or older), and persons with disabilities; (2) 12 month customer billing history for utilities or consumption disclosure release form; (3) eligibility documentation (proof of income eligibility shall consist of checks, check stubs, award letters, employer statements, or other similar documents including total income and public assistance payments); no dwelling unit shall be weatherized without documentation that the dwelling unit is an eligible dwelling unit as defined in 10 C.F.R. §440.22. All proof of income must reflect earnings from within 12 months of the start date indicated on the building weatherization report (BWR). Proof of income documentation requirements are the same for both single and multifamily housing; effective January 1, 2005, all new applications must have proof of income or Declaration of Income Statement for the previous 30 days; (4) BWR to include certification of final inspection; (5) invoices of materials purchased and/or inventory removal sheets; (6) invoices of labor; (7) if a rental unit, landlord agreement form (including Exhibits A and B), landlord financial participation form and Permission to Conduct Energy Audit Form (Department form); and all other Landlord forms found in the Energy Assistance Section of the Departments website. (8) Self -help Certification (Department form), if applicable; (9) Notice of Denial (Department form), if applicable; (10) Signed and dated Building Assessment form; (11) Attic Inspection (local design allowed); (12) Wall Inspection (local design allowed); (13) Justification for Omission of Priorities (local design allowed), if applicable; (14) Documentation of pre weatherization carbon monoxide readings for all combustible appliances.; (15) Documentation of post weatherization carbon monoxide readings for all combustible appliances. (16) Blower Door Data Sheet; (17) Copy of the cover sheet, SIR page, and Suggested Repairs and Measures page for the approved State of Texas Energy Audit; (18) A complete approved State of Texas Energy Audit on disk and a disk back -up for all units weatherized (unless using computer based audit); Page 5 of 16 (19) Signed client receipt of Lead Safe Information (for homes built in 1978 or prior); and (20) Refrigerator replacement form (if applicable). C. Materials standards documentation for weatherization materials purchased under this Contract must be maintained. These standards must meet the requirements according to Appendix A of 10 CFR 440. D. Subrecipient shall give the federal and state funding agencies, the Comptroller General of the United States, and Department access to and the right to reproduce all records pertaining to this Contract. All such records shall be maintained for at least three years after final payment has been made and all other pending matters are closed. Subrecipient shall include the requirements of this Subsection in all subcontracts. E. All WAP records maintained by Subrecipient, except records made confidential by law, shall be available for inspection by the public during Subrecipient's normal business hours to the extent required by the Texas Public Information Act, TEXAS GOVERNMENT CODE ANNOTATED. Chapter 552. F. All subrecipients must conduct a full household assessment addressing all possible allowable weatherization measures. SECTION 14. REPORTING REQUIREMENTS A. On or before the fifth (5th) day of the month, Subrecipient shall electronically submit a Performance Report and Expenditure Report to the Department reporting all activities up to the last day of the previous month. These reports are due each month even if Subrecipient has no new activity to report during the month. Subrecipient must submit the first Performance Report and Expenditure Report no later than October 5, 2009 regardless of whether Subrecipient makes a fund request. B. Subrecipient shall electronically submit to Department no later than sixty (60) days after the end of the Contract term of this Contract a final expenditure and programmatic report. The failure of Subrecipient to provide a full accounting of all funds expended under this Contract may result in ineligibility to receive additional funds or additional contracts. C. Subrecipient shall submit to Department no later than sixty (60) days after the end of the Contract term an inventory of all vehicles, tools, and equipment with a unit acquisition cost of $5,000.00 or more and a useful life of more than one year, if purchased in whole or in part with funds received under this or previous weatherization assistance program contracts. The inventory shall reflect the vehicles, tools, and equipment on hand as of the last day of the Contract term. D. Subrecipient shall submit other reports, data, and information on the performance of this Contract as may be required by DOE pursuant to 10 C.F.R. §440.25, or by Department. E. If Subrecipient fails to submit, in a timely and satisfactory manner, any report or response required by this Contract, including responses to monitoring reports, Department may withhold any and all payments otherwise due or requested by Subrecipient hereunder. Payments may be withheld until such time as the delinquent report or response is received by Department. If the delinquent report or response is not received within forty-five (45) days of its due date, Department may suspend or terminate this Contract. If Subrecipient receives Weatherization Program funds from the Department over two or more Contracts of subsequent terms, funds may be withheld or this Contract suspended or terminated by Subrecipient's failure to submit a past due report or response (including a report of audit) from a prior Contract term. Page 6 of 16 SECTION 15. ASSISTANCE IN PREPARING REPORTS ON USE OF FUNDS Subrecipient shall track all funds under this Contract and their projected statuses separately from all other funds, and shall assist Department in preparing and filing the Department's recipient reports required by Section 1512(c) of the American Recovery and Reinvestment Act of 2009. Subrecipient shall provide to the Department, not later than five (5) calendar days after the end of each calendar quarter, the following information: A. An estimate of the number of jobs created and the number of jobs retained by the project or activity; B. For infrastructure investments, the purpose, total cost, and rationale of the agency for funding the infrastructure investment with funds made available under this Contract, and the name of the person to contact, and contact information, if there are concerns with the infrastructure investment; C. The names and total compensation of the five most highly compensated officers of the entity if: (1) the recipient in its preceding fiscal year received: a. 80 percent or more of its annual gross revenues in Federal awards; and b. $25,000,000 or more in annual gross revenues from Federal awards; and (2) the public does not have access to information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986 [26 U.S.C. §6104]; D. Vendor information including description of product or service, name, zip code, DUNS number, payment amount; and E. Any other information requested by the Department related to the Contract. SECTION 16. CHANGES AND AMENDMENTS Any change in the terms of this Contract required by a change in state or federal law or regulation is automatically incorporated herein effective on the date designated by such law or regulation and subrecipient is on constructive notice of this change whether actual notice is provided. Except as otherwise specifically provided herein any other change in the terms of this Contract shall be by amendment in writing and signed by both parties to this Contract. SECTION 17. NON - BINDING GUIDANCE Department may issue non - binding guidance to explain the rules and provide directions on the terms of this Contract. SECTION 18. INDEPENDENT SUBRECIPIENT It is agreed that Department is contracting with Subrecipient as an independent contractor. Subrecipient agrees to indemnify Department against any disallowed costs or other claims, which may be asserted by any third party in connection with the services to be performed by Subrecipient under this Contract. SECTION 19. PROCUREMENT STANDARDS & SUBCONTRACTS A. Subrecipient shall develop and implement procurement procedures, which conform to the uniform administrative requirements referenced in Section 6 of this Contract. Subrecipient shall not procure supplies, equipment, materials, or services for this Contract except in accordance with its procurement procedures and the Texas Administrative Code: 10 TAC §5.10 - §5.12 and §5.608. All procurement contracts, other than "small purchases" shall be in writing and shall contain the required provisions. Subrecipient must obtain advance written permission from DOE through Department before purchasing any vehicle. Subrecipient shall include language in any subcontract that provides the Department the ability to directly review, monitor, and/or audit the operational and financial performance and /or records of work performed under this Contract. B. In addition to following any applicable state or local procurement laws, Subrecipient shall timely provide the Department with an electronic version of any notice of procurement opportunity for posting on the Department's website. Page 7 of 16 C. To the maximum extent possible, subcontracts funded under this Contract shall be awarded as fixed -price contracts through the use of competitive procedures. Subrecipient shall post a summary of any contract awarded with such funds that is not fixed -price and not awarded using competitive procedures on the federal website established pursuant to Section 1526 of the American Recovery and Reinvestment Act of 2009. D. Subrecipient shall ensure that its subcontractors comply with all applicable terms of this Contract as if the performance rendered by the subcontractor was being rendered by Subrecipient. Subrecipient shall inspect all subcontractors' work and shall be responsible for ensuring that it is completed in a good and workmanlike manner. Subrecipient shall make no payment to subcontractor until all work is complete and has passed a final inspection. E. It is the sole responsibility of Subrecipient's authorized weatherization staff to perform every initial assessment, every approved State of Texas Energy Audit, and every final inspection. In an emergency situation, Subrecipient may request in writing that the Department waive this requirement. The Department will review each request separately to determine whether a waiver will be granted, the conditions for the waiver, and the maximum time allotted for the waiver. Under no circumstances will a waiver be granted for longer than six months. Failure to strictly adhere to this policy will result in disallowed costs. SECTION 20. AUDIT A. Subrecipient shall arrange for the performance of an annual financial and compliance audit of funds received and performances rendered under this Contract, subject to the following conditions and limitations: (1) Subrecipients expending $500,000 or more in federal financial assistance for any fiscal year ending on or after December 31, 2003, shall have an audit made in accordance with Department's supplemental audit guide, the Single Audit Act Amendments of 1996, 31 U.S.C. 7501 et seq. and OMB Circular No. 133 - Revised June 27, 2003, "Audits of States, Local Governments, and Non - Profit Organizations." For purposes of this Section 15, "federal financial assistance" means assistance provided by a federal agency in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance or direct appropriations, but does not include direct federal cash assistance to individuals. The term includes awards of federal financial assistance received directly from federal agencies, or indirectly through other units of state and local government. (2) Subrecipient shall utilize funds budgeted under this Contract to pay for that portion of the cost of such audit services properly allocable to the activities funded by Department under this Contract, provided however that Department shall not make payment for the cost of such audit services until Department has received a satisfactory audit report, as determined by Department, from Subrecipient. (3) Subrecipient shall submit two (2) copies of the report of such audit to Department within thirty (30) days after the completion of the audit, and no later than nine (9) months after the end of the audit period. However, for fiscal years beginning on or before June 30, 1998, the audit shall be completed and submitted within the earlier of 30 days after receipt of the auditor's report or 13 months after the end of the audit period. Subrecipient shall ensure that the audit report is made available for public inspection within thirty (30) days after completion of the audit. Audits performed under this Section 16 are subject to review and resolution by Department or its authorized representative. (4) The audit report must include verification of all expenditures by budget category, in accordance with the final Monthly Expenditure Report submitted to close out the contract year. B. Subsection A notwithstanding, Subrecipients expending less than $500,000 in Federal financial assistance may arrange for the performance of an annual financial statement audit. Such audit should include verification as required in § 16(AX4). C. Subsection A notwithstanding, Department reserves the right to conduct an annual financial and compliance audit of funds received and performances rendered under this Contract. Subrecipient agrees to permit Department or its authorized representative to audit Subrecipient's records and to obtain any documents, materials, or information necessary to facilitate such audit. D. Subrecipient understands and agrees that it shall be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this Contract. Subrecipient further understands and agrees that reimbursement to Department of such disallowed costs shall be paid by Subrecipient from funds which were not provided or otherwise made available to Subrecipient under this Contract. Page 8 of 16 E. Subrecipient shall take such action to facilitate the performance of such audit or audits conducted pursuant to this section as Department may require of Subrecipient. F. Subrecipient shall procure audit services through an open, competitive process at least once every four years. The auditor shall retain working papers and reports for a minimum of three years after the date of issuance of the auditor's report to the auditee. Audit working papers shall be made available upon request to Department at the completion of the audit, as a part of a quality review, to resolve audit findings, or to carry out oversight responsibilities consistent with the purposes of this part. Access to working papers includes the right to obtain copies of working papers, as is reasonable and necessary. SECTION 21. PROPERTY MANAGEMENT A. Subrecipient acknowledges that any vehicles, tools, and equipment with a unit acquisition cost of $5,000.00 or more and a useful life of more than one year, if purchased in whole or in part with funds received under this or previous weatherization assistance program Contracts, are not assets of either the subrecipient or the Department but are held in trust for the Weatherization Assistance Program and as such are assets of the Weatherization Assistance Program. Any equipment, tools, or vehicles having a useful life of more than one year and an acquisition cost of $5,000.00 or more per unit must receive prior approval from the Department before the purchase is made. B. Subrecipient shall develop and implement a property management system, which conforms to the uniform administrative requirements referenced in Section 6. Subrecipient shall not use, transfer, or dispose of any property acquired in whole or in part with funds provided under this or a previous weatherization assistance program contract except in accordance with its own property management system. C. Upon termination or non - renewal of this contract, the Department may transfer the title of equipment to a third party named by the Department. Such a transfer shall be subject to the following standards: 1) The equipment shall be appropriately identified in the award or otherwise made known to the recipient in writing. 2) The Department will issue disposition instructions after receipt of final inventory. D. Subrecipient shall establish adequate safeguards to prevent loss, damage, or theft of property acquired hereunder and shall promptly report to Department any loss, damage, or theft of property with an acquisition cost of Five Thousand Dollars ($5,000.00) or more. E. In addition to the inventory of vehicles, tools, and equipment required under Section 10, Subrecipient shall take a physical inventory of all WAP materials and shall reconcile the results with its property records at least once every year. Any differences between quantities determined by the inventory and those shown in the property records shall be investigated by Subrecipient to determine the cause of the difference. Page 9 of 16 SECTION 22. INSURANCE REQUIREMENTS Subrecipient shall maintain adequate personal injury and property damage liability insurance or, if Subrecipient is a unit of local government, shall maintain sufficient reserves to protect against the hazards arising out of or in connection with the performance of this Contract. Subrecipient may obtain pollution occurrence insurance in addition to the general liability insurance. Generally, regular liability insurance policies do not provide coverage for potential effects of many health and safety measures, such as lead disturbances and other pollution occurrence items. Subrecipient shall review existing policies to ensure that lead contamination is covered and if not, secure adequate coverage for all units to be weatherized. Additional liability insurance costs may be paid from administrative or program support categories. The Department strongly recommends the subrecipient require their contractors to carry pollution occurrence insurance to avoid being liable for any mistakes the contractors may make. Each agency should get a legal opinion regarding the best course to take for implementing the pollution occurrence insurance coverage. If Subrecipient is not a unit of local government, Subrecipient shall provide Department with certificates of insurance evidencing Subrecipient's current and effective insurance coverage. Subrecipient agrees to notify the Department immediately upon receipt of notification of the termination, cancellation, expiration, or modification of any insurance coverage or required policy endorsements. Subrecipient agrees to suspend the performance of all work performed under this Contract until Subrecipient satisfies the coverage requirements and obtains the policy endorsements, and has delivered to Department certificates of insurance evidencing that such coverage and policy endorsements are current and effective, and has been notified by Department that such performance of the work under this Contract may recommence. Subrecipients must also require all contracting independent subcontractors to have general liability insurance. Subrecipients' insurance must cover the pollution occurrence insurance coverage for their independent subcontractors or the independent subcontractors must obtain the coverage. SECTION 23. LITIGATION AND CLAIMS Subrecipient shall give Department immediate written notice of any claim or action filed with a court or administrative agency against Subrecipient and arising out of the performance of this Contract or any subcontract hereunder. Subrecipient shall furnish to Department copies of all pertinent papers received by Subrecipient with respect to such action or claim. SECTION 24. TECHNICAL ASSISTANCE AND MONITORING Department or its designee may conduct periodic technical assistance visits, desk and on -site monitoring to evaluate the efficiency, economy, and effectiveness of Subrecipient's performance of this Contract. Department will advise Subrecipient in writing of any deficiencies noted during such monitoring. Department may provide technical assistance to Subrecipient and may require changes in Subrecipient's accounting, personnel, procurement, and management procedures in order to correct any deficiencies noted. Subrecipient may be required by Department to return to dwelling units to correct identified problems. Department may further review and assess the efforts Subrecipient has made to correct previously noted deficiencies. Department may withhold funds, place Subrecipient on a cost reimbursement basis, deobligate funds, suspend performance, terminate this Contract, or invoke other remedies in the event monitoring reveals material deficiencies in Subrecipient's performance or if Subrecipient fails to correct any deficiency within a reasonable period of time. SECTION 25. LEGAL AUTHORITY A. Subrecipient represents that it possesses the practical ability and the legal authority to enter into this Contract, receive and manage the funds authorized by this Contract, and to perform the services Subrecipient has obligated itself to perform under this Contract. B. The person signing this Contract on behalf of Subrecipient hereby warrants that he /she has been authorized by Subrecipient to execute this Contract on behalf of Subrecipient and to bind Subrecipient to all terms herein set forth. C. Department shall have the right to suspend or terminate this Contract if there is a dispute as to the legal authority of either Subrecipient or the person signing this Contract to enter into this Contract or to render performances hereunder. Should such suspension or termination occur, subrecipient is liable to Department for any money it has received for performance of the provisions of this Contract. Page 10 of 16 SECTION 26. PREVENTION OF FRAUD AND ABUSE A. Subrecipient shall establish, maintain, and utilize intemal control systems and procedures sufficient to prevent, detect, and correct incidents of waste, fraud, and abuse in the WAP and to provide for the proper and effective management of all program and fiscal activities funded by this Contract. Subrecipient's intemal control systems and all transactions and other significant events must be clearly documented and the documentation made readily available for review by Department. B. Subrecipient shall give Department complete access to all of its records, employees, and agents for the purpose of monitoring or investigating the weatherization program. Subrecipient shall fully cooperate with Department's efforts to detect, investigate, and prevent waste, fraud, and abuse. Subrecipient shall immediately notify the Department of any identified instances of waste, fraud, or abuse. C. Department will notify the funding source upon identification of possible instances of waste, fraud, and abuse or other serious deficiencies. D. Subrecipient may not discriminate against any employee or other person who reports a violation of the terms of this Contract or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 27. HB 1196 CERTIFICATION Subrecipient / Local Operator certifies that it, or a branch, division, or department of Subrecipient / Local Operator does not and will not knowingly employ an undocumented worker, where "undocumented worker" means an individual who, at the time of employment, is not lawfully admitted for permanent residence to the United States or authorized under law to be employed in that manner in the United States. If, after receiving a public subsidy, Subrecipient / Local Operator, or a branch, division, or department of Subrecipient / Local Operator is convicted of a violation under 8 U.S.C. Section 1324a, Subrecipient / Local Operator shall repay the public subsidy with interest, at a rate of 5% per annum, not later than the 120th day after the date TDHCA notifies Subrecipient / Local Operator of the violation. SECTION 28. SB 608 CERTIFICATION Under Section 2261.053, Texas Govemment Code, Subrecipient / Local Operator certifies that it is not ineligible to receive this contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate. SECTION 29. CONFLICT OF INTEREST/NEPOTISM A. Subrecipient represents that neither it nor any member of its goyeming body presently has any interest or shall acquire any interest in, directly or indirectly, which would conflict with the performance of this Contract and that no person having such interest shall be employed by Subrecipient or appointed as a member of Subrecipient's governing body. B. Subrecipient shall establish safeguards to prohibit its employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. C. Subrecipient agrees that it will comply with TEX. GOV'T CODE ANN. Chapter 573 by ensuring that no officer, employee, or member of the governing body .of Subrecipient shall vote for or confirm the employment of any person related within the second degree by affinity or third degree by consanguinity to any member of the governing body or to any officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the continued employment of a person who has been continuously employed for a period of two years prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. Page 11 of 16 SECTION 30. POLITICAL ACTIVITY AND LOBBYING PROHIBITED A. None of the funds provided under this Contract shall be used for influencing the outcome of any election, or the passage or defeat of any legislative measure. This prohibition shall not be construed to prevent any official or employee of Subrecipient from furnishing to any member of its governing body upon request, or to any other local or state official or employee or to any citizen information in the hands of the employee or official not considered under law to be confidential information. Any action taken against an employee or official for supplying such information shall subject the person initiating the action to immediate dismissal from employment. B. No funds provided under this Contract may be used directly or indirectly to hire employees or in any other way fund or support candidates for the legislative, executive, or judicial branches of government of Subrecipient, the State of Texas, or the government of the United States. C. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Contract, Subrecipient shall complete and submit a Certification Regarding Lobbying form in accordance with its instructions. No state funds may be given to persons who are required to register under TX GOV'T CODE ANN. 305. D. None of the funds provided under this Contract shall be paid to any official or employee who violates any of the provisions of this section. SECTION 31. REQUIREMENT TO POST NOTICE OF WHISTLEBLOWER RIGHTS AND REMEDIES Any employer receiving funds under this Contract shall post notice of the rights and remedies afforded whistleblowers under Section 1553 of the American Recovery and Reinvestment Act of 2009. SECTION 32. NON - DISCRIMINATION AND EQUAL OPPORTUNITY No person shall on the ground(s) of race, color, religion, sex, national origin, age, disability, political affiliation or belief be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in the administration of or in connection with any program or activity funded in whole or in part with funds made available under this Contract. SECTION 33. JOB POSTINGS ON WORKINTEXAS.COM Subrecipient must post all of their Contract - related job opportunities on the Workintexas.com website. SECTION 34. SPECIAL COMPLIANCE PROVISIONS Subrecipient shall comply with the requirements of all applicable laws and regulations, including those specified in 10 C.F.R. Part 600. SECTION 35. TRAINING AND TECHNICAL ASSISTANCE FUNDS A. Training and technical assistance funds shall be used for State sponsored, DOE sponsored, and other relevant workshops and conferences provided the agenda includes topics directly related to administering WAP in accordance with the Texas Administrative Code: 10 TAC §5.532. For Training and Technical Assistance other than State or DOE sponsored Subrecipient must receive prior written approval from the Department. B. Allowable travel costs under this Contract shall be determined in accordance with OMB Circulars A -122 or A -87, as applicable, any Department Issuance on travel, and with Subrecipient's written travel policy. Subrecipient's written travel policy shall delineate the rates which Subrecipient shall use in computing the travel and per diem expenses of its board members and employees. Prior to incurring any costs for travel, subrecipient must provide Department with a copy of its travel policy and evidence that such policy has been approved by Subrecipient's goveming body. If Subrecipient has no established written travel policy, the travel regulations applicable to Department employees shall apply. C. Department may, from time to time, provide funds in this category that are for the sole purpose of purchasing designated weatherization equipment. Page 12 of 16 SECTION 36. MAINTENANCE OF EFFORT Funds provided to Subrecipient under this Contract may not be substituted for funds or resources from any other source, nor may they in any way serve to reduce the funds or resources, which would have been available to or provided through Subrecipient, had this Contract never been executed. SECTION 37. DEBARRED AND SUSPENDED PARTIES (1) Subrecipient must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension and 45 CFR Part 76." (2) Subrecipient certifies that neither it or its principles is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. (3) Where Subrecipient is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this Contract. (4) Subrecipient shall include in any subcontracts that failure to adequately perform under this Contract may result in penalties up to and including Debarment from performing additional work for the Department. SECTION 38. NO WAIVER No right or remedy given to Department by this Contract shall preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. SECTION 39. PRIOR ORAL AND WRITTEN AGREEMENTS All prior oral or written agreements between the parties hereto relating to the subject matter of this Contract have been reduced to writing and are contained herein. SECTION 40. LEGAL USE OF FUNDS CERTIFICATION Subrecipient hereby certifies, as a condition to receiving funds from the Department under this Contract, that the funds will be used in accordance with state and federal laws. SECTION 41. COMMENCEMENT OF ACTIVITY Prior to the commencement of any home related weatherization expenditures, Subrecipients must attend the September, 2009 Weatherization 101 training conducted by the Department. SECTION 42. SEVERABILITY If any portion of this Contract is held to be invalid by a court of competent jurisdiction, the remainder of it shall remain valid and binding. Page 13 of 16 SIGNED this day of City of Corpus Christi By: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS By: This Contract is not effective unless signed by the Executive Director of the Department or their authorized designee. Page 14 of 16 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NUMBER 16090000703 FOR THE THE AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) (CFDA# 81.402) ATTACHMENT A - BUDGET AND PERFORMANCE DOCUMENT SUBRECIPIENT NAME: City of Corpus Christi DEPARTMENT FINANCIAL OBLIGATIONS $ 1,519.834.00 ARRA FUNDS CURRENTLY AVAILABLE $ 61,903.00 TRAINING & TECHNICAL ASSISTANCE FUNDS CURRENTLY AVAILABLE $ 1,519,834.00 TOTAL ANTICIPATED ARRA FUNDS $ 61,903.00 TOTAL ANTICIPATED TRAINING & TECHNICAL ASSISTANCE FUNDS Additional funds may be obligated via Amendment(s). Funds may only be obligated and expended during the current contract term. Unexpended fund balances will be recaptured. BUDGET FOR AVAILABLE ALLOCATIONS CATEGORIES FUNDS 2 Administration $ 75,992.00 3 Liability / Pollution Occurrence Insurance $ 7,767.00 Fiscal Audit $ 1,000.00 Materials / Program Support / Labor $ 1,148,060.00 4 health and Safety $ 287,015.00 • SUB -TOTAL $ 1,519,834.00 5 Training and Technical Assistance $ 61,903.00 TOTAL $ 1,581,737.00 FOOTNOTES TO BUDGET FOR AVAILABLE ALLOCATIONS: Denotes that the subrecipient must request in writing any adjustment needed to a budget category before TDHCA will make any adjustments to the budget categories. The only categories that can be reduced are the Administration, Insurance, Fiscal Audit and /or in the Health and Safety categories. Subrecipients are limited to two (2) requested budget revisions during the current contract term. Only those written request(s) from the subrecipients received at least 120 days prior to the end of the contract term (by April 30, 2011) will be reviewed. TDHCA may decline to review written requests received during the final 90 days of the contract term. 2 Denotes maximum for administration based on 5.00% of the total allowable expenditures excluding travel for training. 3 Denotes $4,000 for liability insurance and the remaining balance for pollution occurrence insurance. 4 Denotes the maximum allowed for Health and Safety expenditures. 5 Department approved training / travel only. Page 15 of 16 PERFORMANCE Subrecipient's service area consists of the following Texas counties: NUECES Subrecipient's service area consists of the following Texas cities: CORPUS CHRISTI Subrecipient shall provide weatherization program services sufficient to expend the contract funds during the contract term. ARRA costs per unit, excluding health and safety expenses, shall not exceed $6,500.00 without prior written approval from the Department. By signing this Contract the parties expressly understand and agree to the terms set forth word for word therein. This Contract shall be binding upon the parties hereto and their respective successors and assigns. Effective Date of Budget: 09/01/2009 City of Corpus Christi By: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS By: This Contract is not effective unless signed by the Executive Director of the Department or their authorized designee. Page 16 of 16 A RESOLUTION RATIFYING ACCEPTANCE OF A FUNDING AWARD IN THE AMOUNT OF $1,581,737 FROM THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR THE WEATHERIZATION ASSISTANCE PROGRAM, EFFECTIVE SEPTEMBER 1, 2009; AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE ALL RELATED DOCUMENTS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Acceptance of a funding award in the amount of $1,581,737 from the Texas Department of Housing and Community Affairs is hereby ratified to be effective September 1, 2009. Furthermore, the City Manager or his designee is authorized to execute all related documents. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: March 1, 2010 Eliza.b; th R. Hundley Assistant City Attorney for the City Attorney EHres260.doc Joe Adame Mayor Corpus Christi, Texas day of , 2010 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 EHres260.doc AN ORDINANCE APPROPRIATING $1,581,737 IN THE NO. 1059 GRANT FUND FOR THE WEATHERIZATION ASSISTANCE PROGRAM; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Grant funding in the amount of $1,581,737 is appropriated in the No.1059 Grant Fund for the Weatherization Assistance Program. SECTION 2. Upon the 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 , 2010. ATTEST: Armando Chapa City Secretary APPROVED: March 1, 2010 Ctk Elizabeh R. Hundley r Assistant City Attorney for the City Attorney EHord294.doc t. 1 CITY OF CORPUS CHRISTI Joe Adame Mayor Corpus Christi, Texas day of , 2010 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I /we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members Joe Adame Mayor 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 EHord294.doc 17 AGENDA MEMORANDUM City Council Action Date: March 9, 2010 SUBJECT: Salt Flats Levee System - Phase 1 (Project No. 3428 / CIP PH 18) AGENDA ITEM: A. Resolution approving the Corpus Christi Business and Job Development Corporation's expenditure of $1,100,000 of the Corporation's Seawall Funds for the Salt Flats Levee System - Phase 1 project; authorizing amendment of the Corporation's budget; and approving a Seawall Project Agreement between the Corporation and the City of Corpus Christi for the Salt Flats Levee System -Phase 1 project. B. Ordinance appropriating $1,100,000 from Corpus Christi Business and Job Development Corporation into the No. 3271 Seawall Systems CIP Fund for Salt Flats Levee System -Phase 1 project. C. Motion authorizing the City Manager, or his designee, to execute a Contract for Professional Services with Urban Engineering of Corpus Christi, Texas, in the amount of $303,054 for preliminary design, design, bid and construction phase services, and additional services for the Salt Flats Levee System -Phase 1 project for levee FEMA recertification. ISSUE: This project is comprised of two parts. The first part is the design of a construction project for the necessary maintenance of the existing Salt Flats levee system. The improvements include tree root removal, cleaning storm sewer lines, installation of storm sewer flap gates and improving security at four (4) gate locations. The second part is the preparation of a guidance document for the re- certification of the Salt Flats levee system, which is necessary if these structures are to be considered when FEMA produces updates to the area's base flood maps. Failure to certify these levees would result in increased flood insurance costs for existing structures within the Salt Flats and downtown area and an increase in the required minimum floor elevations for new structures. This proposal is to execute the Contract for Professional Services with Urban Engineering. This consultant was selected through RFP No. 2009 -05 City of Corpus Christi Projects. FUNDING: Funding is available from the Corpus Christi Business and Job Development Corporation. RECOMMENDATION: Staff recommends approval of the items as presented. Pete Anaya, P.E. Director of Engineering Services 361/826-3781 peteancctexas.com Additional Exhibit "A" Exhibit "B" Exhibit "C" Exhibit "D" Exhibit "E" Exhibit "F" Exhibit "G" Support Material: Background Information Prior Project Actions Resolution Seawall Project Agreement Ordinance Contract Summary Location Map H: IHOME1Rachelle \GEN \Drainage13428 -Salt Flats Levee System AAgenda Memo.doc AGENDA BACKGROUND INFORMATION SUBJECT: Salt Flats Levee System — Phase 1 Project No. 3428 / CIP No. PH 18 PROJECT DESCRIPTION: The current Salt Flats Levee System has maintenance issues that include tree removal and side slope restoration, flap gate replacement and security at gate structures. The improvements are necessary to ensure that the system will function as originally designed. Design, construction plans and bid documents will be prepared to construct - -as quickly as practical - -the necessary repairs to afford the level of protection provided in the original levee design. The second part of this project is the preparation of a comprehensive guidance document for the re- certification of the Salt Flats Levee System. The re- certification is necessary if these structures are to be considered when FEMA produces the updates to the area's base flood maps. Failure to certify these levees would result in increased flood insurance for existing structures within the Salt Flats and downtown area, as well as an increase in the required minimum floor elevations for new structures. The guidance document will include detailed surveys, geotechnical investigations, preliminary designs for structure repairs and cost estimates for required improvements. Additionally, the document will provide suggestions for potential grants for necessary improvements as well as an action plan which will assist the City in scheduling capital expenditures on the system. Short -Term Improvements 1. Levee Maintenance: In addition to mowing the levees, perform regular tree root removal to minimize the potential of side -slope failure. Rotting tree roots may form void areas and cavities within the levee side slopes that act to channelize storm water runoff through the levee. Maintaining a comprehensive record of maintenance and inspection activities is also recommended, and a system may be implemented and documented jointly by the Port of Corpus Christi Authority (PCCA) and the City. These documents are recommended to fulfill the requirement of the Federal Emergency Management Agency (FEMA) recertification process. 2. Flap Gates: Replace the flap gates with new cast -iron flap gates at seven locations and clean the pipe penetration lines. 3. Gate Structures: Improve security to deter theft and vandalism of the aluminum stop -log structures and associated hardware. Installing remote - operated security cameras at the four storm gate locations is recommended. EXHIBIT "A" Page 1 of 2 H: \HOME\Rachelle \GEN\Drainage\342 &Salt Flats Levee System\Agenda Background- AE.doc 4. Investigation and Evaluation Strategy for FEMA Certification Analysis: FEMA is currently evaluating the condition of levee systems nationwide to determine their effectiveness in providing adequate flood protection. Performing a preliminary condition assessment of the Salt Flats Levees would be an important step for the City to determine the potential impact of FEMA's re- classification and evaluation process. Recent studies and efforts by the U.S. Army Corps of Engineers (USACE) involving updates to FEMA flood plain maps require a review of levees currently shown on Flood Insurance Rate Maps (FIRMs) as providing protection from the 1% annual chance exceedance (100 -year) flood event. To illustrate that levees provide 100 -year protection, FEMA requires them to meet certification requirements. If a levee or portion of a levee does not meet certification requirements, the levee owner must take the appropriate action for FEMA to recognize these levees as providing 100 -year protection, or the levee may be de- certified and not considered to provide flood protection. This may impact FEMA's determination of flood zone classification. To recertify a levee system, it will be necessary to meet both USACE /FEMA levee certification and USACE PL 84 -99 Program requirements. At this time, no public information was available indicating a schedule for FEMA's completion of this map modernization process for Nueces County. CONTRACT SUMMARY /FEE: A contract summary and fee is attached as Exhibit "C ". PROJECT BACKGROUND: This existing Salt Flats Levee System was designed and constructed in the mid 1950's. The system is experiencing significant problems which require tree removal and side slope restoration, flap gate replacement and security improvements at gate structures. The improvements are necessary to ensure that the system will function as originally designed. Additionally, after the flood events from Hurricanes Katrina and Ike, FEMA is revising the flood plain maps and reviewing operating and emergency responses. As part of this, FEMA is mandating the certification of the levee in accordance with CFR 65.10. Specifically, the certification must consider freeboard, closure, embankment protection, embankment and foundation stability, settlement and interior drainage. The FEMA- revised flood plain maps that are currently under development will require that all man -made structures be certified. This certification would impact the final building elevations of new structures and insurance rates of existing structures. This project will include both short- term improvements to address the existing system and discrepancies as well as the long- term improvements to respond to FEMA requirements. The consultant recommended for this project is the local team lead by Urban Engineering with support from URS Group and Rock Engineering. This team was selected from proposals submitted from consultants to a request for proposals (RFP No. 2009 -05 City of Corpus Christi Projects) released by the City in May 2009. H: IHOME1RachellelGEMDrainage13428 -Salt Flats Levee System Agenda Background- AE.doc EXHIBIT "A" Page 2 of 2 PRIOR PROJECT ACTIONS SUBJECT: Salt Flats Levee System — Phase 1 Project No. 3428 / CIP No. PH 18 PRIOR COUNCIL ACTION: 1. November 14, 2000 — Ordinance canvassing returns and declaring the results of the Special Election held November 7, 2000 in the City of Corpus Christi for the adoption of seven propositions; adopting and levying a sales and use tax pursuant to Section 4A of the Development Corporation Act as approved by the voters in Propositions 4 and 5. (Ordinance No. 024269) 2. July 21, 2009: Presentation regarding Seawall Improvement Fund and potential use of proceeds. 3. July 21, 2009 - Ordinance appropriating $33,400 of Unappropriated Fund Balance in the No. 1120 Seawall Improvement Fund for expenditures relating to the Assessment of Seawall Improvements; changing FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 to increase appropriations by $33,400. (Ordinance No. 028240) PRIOR ADMINISTRATIVE ACTION: 1. May 29, 2009 - Distribution of Request for Proposals (RFP) No. 2009 -05 City of Corpus Christi Projects to 190 engineering firms (77 local and 113 non - local). 2. June 22, 2009 — Addendum No. 1 to the Request for Proposals (RFP) No. 2009 -05 City of Corpus Christi Projects to 190 engineering firms (77 local and 113 non - local). 3. June 29, 2009 — Addendum No. 2 to the Request for Proposals (RFP) No. 2009 -05 City of Corpus Christi Projects to 190 engineering firms (77 local and 113 non - local). aEXHIBIT "B" Pa•e1of1 H:\ HOME \Rachelle\GEN \Drainaae \3428 -Salt Flats Levee System \Prior Proiect Actions.doc RESOLUTION APPROVING THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION'S EXPENDITURE OF $1,100,000 OF THE CORPORATION'S SEAWALL FUNDS FOR THE SALT FLATS LEVEE SYSTEM — PHASE 1 PROJECT; AUTHORIZING AMENDMENT OF THE CORPORATION'S BUDGET; AND APPROVING A SEAWALL PROJECT AGREEMENT BETWEEN THE CORPORATION AND THE CITY OF CORPUS CHRISTI FOR THE SALT FLATS LEVEE SYSTEM — PHASE 1 PROJECT WHEREAS, the Corpus Christi Business and Job Development Corporation ( "Corporation ") has available surplus seawall funds that can be used for promotion and development of improvements to the downtown seawall and for the maintenance and operating costs of the seawall improvements for the life of the seawall improvements; WHEREAS, the City of Corpus Christi ( "City ") submitted a proposal to the Board of Directors of the Corporation ( "Type A Board ") to utilize some of the surplus seawall funds of available to the Corpus Christi Business and Job Development Corporation ( "Corporation ") for the Salt Flats Levee System — Phase 1 Project ( "Project "); WHEREAS, Type A Board determined that the City's proposed Project promotes and develops improvements to the downtown seawall and for the maintenance and operating costs of the seawall improvements for the life of the seawall improvements; and WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the Seawall Project Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Council approves the Type A Board's use of $1,100,000.00 of the Corporations' available seawall funds for the City's Salt Flats Levee System — Phase 1 Project, and authorizes the conforming amendment of the Corporation's budget. SECTION 2. That the Seawall Project Agreement for the Salt Flats Levee System — Phase 1 Project between the Corporation and City, which is attached to this resolution as Exhibit A, is approved. EXHIBIT "C" Page 1 of 3 H: \HOME \Rachelle \GEN \Drainage\342 &Salt Flats Levee System \Resolution.doc ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Joe Adame City Secretary Mayor APPROVED: 10th day of February, 2010. R. Jay Reining First Assistant City Attorney For City Attorney EXHIBIT "C" 1 Page 2 of 3 H: HOME\Rachelle \GEN \Drainagel3428 -Salt Flats Levee SystemlResolution.doc Corpus Christi, Texas of , 2010 The above resolution 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 IEXHIBIT "C" Page 3of3 H: \HOMEIRachellelGEN\Drainage1342 8-Salt Flats Levee System \Resolution.doc SEAWALL PROJECT AGREEMENT CITY OF CORPUS CHRISTI — SALT FLATS LEVEE SYSTEM -- PHASE I This Seawall Project Agreement ( "Project Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and the City of Corpus Christi ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 7, 2000, residents of the City of Corpus Christi passed Proposition 4, Seawall Improvements, which authorized the adoption of a sales and use tax for the promotion and development of improvements to the downtown Seawall and for the maintenance and operating costs of the Seawall Improvements for the life of the Seawall Improvements at the rate of one - eighth of one percent to be imposed for 25 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 4 was subsequently enacted by the City's City Council ( "City Council "), and filed with the State Comptroller of Texas, effective April 1, 2001, to be administered by the Corporation's Board of Directors ( "Board "); WHEREAS, the City submitted a proposal to the Board to request surplus seawall funds for potential projects to protect and enhance the City's seawall and related structures; WHEREAS, the Board has determined that it is in the best interests of the residents of the City of Corpus Christi that seawall funds be awarded to the City for four projects, including the Salt Flats Levee System — Phase I ( "Project "), by execution of this Project Agreement, to accomplish the Seawall Project described in this agreement and in the City's proposal; In consideration of the covenants, promises, and conditions stated in this Project Agreement, the Corporation and the City agree as follows: 1. Project Agreement to Implement Seawall Project. This Project Agreement between the Corporation and City is executed to implement the promotion and development of a Seawall Project proposed by the City. The proposal submitted by the City for "Salt Flats Levee System -- Phase I" is attached to this Project Agreement as Exhibit A, and is incorporated in this Project Agreement by reference. 2. Effective Date. The effective date of this Project Agreement is the latest date on which a party to this Project Agreement executes this Project Agreement ( "Effective Date "). H: \HOME \Rachelle\GEN\Drainage 1342 8-Salt Flats Levee System \Seawall Project Agreement.doc 3. Services to be Provided by City. a. The City, through the City's City Manager or his designee ( "City Manager "), administers the funding and performs contract administration responsibilities, as outlined in this Project Agreement, for the Corporation. b. Undertake required contracting and oversight related to levee maintenance, replacement of existing storm water ouffall flap gates at seven locations, security improvements to deter theft and vandalism of aluminum stop log structures (storm gates), and the investigation and evaluation strategy for FEMA certification of the levee system. 4. Grant to be Provided by Corporation. The Corporation will grant the City $1,100,000.00 for the project. 5. Documentation and Reports. a. The City shall maintain all documentation relating to the receipt and expenditure of the funds provided under this Project Agreement for a period of three years following the expiration of this Project Agreement or for such longer period as may be required by Federal or State law. b. The City shall provide access to all records, documents, reports, and audits, regarding the funded activity under this Project Agreement, during regular business hours, for the purpose of inspection and copying by the City Manager. Furthermore, the City shall provide to the City Manager any information pertinent to this Project Agreement, as may be requested during the term of this Project Agreement. c. The City shall submit a performance report ( "Quarterly Report") to the Corporation at least once each quarter, and a complete performance report ( "Final Report") within 30 days of the completion of the Project. The Quarterly and Final Reports must contain all relevant details pertaining to the tasks described in Exhibit A, and include any supporting documentation required to substantiate the written narrative contained in the reports. 6. Amendments or Modifications. No amendments or modifications to this Project Agreement may be made, nor any provision waived, unless the amendment or modification is made in writing and signed by persons duly authorized to sign agreements on behalf of all parties. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Agreement or the application of this Project Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Agreement, or the H: IHOME'Rachelle1GEMDrainage13428 -Salt Flats Levee System \Seawall Project Agreement.doc EXHIBIT "D" Page 2 of 9 application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Agreement that every section, paragraph, subdivision, clause, provision, phrase, and word of this Project Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Agreement, then the remainder of this Project Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Agreement automatically. 8. Compliance with Laws. The City shall comply with all applicable Federal, State, and local government laws, rules, regulations, and ordinances which may be relevant to the City's performance under this Project Agreement. 9. Jurisdiction and Venue. a. This Project Agreement is governed by and must be construed under the laws of the State of Texas. b. All actions brought to enforce compliance with this Project Agreement must be brought in Nueces County, Texas, where this Project Agreement was entered into and must be performed. 10. Acknowledgment and Construction of Ambiguities. The parties expressly agree that each has independently read and does understand this Project Agreement. By the City's execution of this Project Agreement, the City agrees to be bound by the terms, covenants, and conditions contained in this Project Agreement. Any ambiguities in this Project Agreement may not be construed against the drafter. 11. Indemnity. The City must fully indemnify and hold harmless the City of Corpus Christi, the Corpus Christi Business and Job Development Corporation, and their officers, employees, and agents (hereinafter, collectively "Indemnitees ") from and against any and all liability, damage, loss, claims, demands, expenses, suits, and causes of action of any nature whatsoever on account of injury or damage to person (including, without limitation on the foregoing, premises defects, workers' compensation, and death claims) or property loss or damage of any kind whatsoever which arise out of or are in any manner connected with, or are claimed to arise out of or be in any way connected with, either proximately or remotely, wholly or in part, H: HOME\Rachelle \GEN\Drainage\3428 -Salt Flats Levee System Seawall Project Agreement.doc any activities by the City, its officers, employees, agents, members, invitees, or independent contractors with respect to this Project Agreement or the Project that is the subject of this Project Agreement, regardless of whether such injuries, death, or damages are caused, or are claimed to be caused, by the contributory negligence of any of the lndemnitees, but not if caused by the sole negligence of the lndemnitees unmixed with the fault of any other person or entity. The City covenants and agrees that if lndemnitees, or any of them, are made a party to any litigation against the City or in any litigation commenced by any party other than the City relating to this Project Agreement or Project, the City shall, upon receipt of reasonable notice regarding commencement of litigation, at its own expense, investigate all claims and demands, attend to their settlement or other disposition, defend lndemnitees in all actions based thereon with legal counsel satisfactory to lndemnitees, and pay all charges of attorneys and all other costs and expenses of any kind arising from any said liability, damage, loss, demand, claim, or action. 12. Warranties. The City warrants and represents to Corporation the following: a. The City is a duly organized, validly existing, and in good standing under the laws of the State of Texas, has all authority to carry on its business as presently conducted in Corpus Christi, Texas. b. The City has the authority to enter into and perform, and will perform, the terms of this Project Agreement. c. The City has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Project Agreement must be utilized solely for purposes authorized under State law and by the terms of this Project Agreement. d. If an audit determines that the funds were not used for authorized purposes, the City agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. e. The parties executing this Project Agreement on behalf of the City are duly authorized to execute this Project Agreement on behalf of the City. 13. Events of Default. The following events constitute a default of this Agreement: a. Failure of the City to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Project Agreement. H:\HOME \Rachelle \GEN \Drainage \342 8-Salt Flats Levee System \Seawall Project Agreement.doc EXHIBIT "D" I Page 4 of 9 b. The Corporation determines that any representation or warranty on behalf of the City contained in this Project Agreement or in any financial statement, certificate, report, proposal, or opinion submitted to the Corporation in connection with this Project Agreement was incorrect or misleading in any material respect when made. c. Any judgment is assessed against the City or any attachment or other levy against the property of the City with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. The City makes an assignment for the benefit of creditors. e. The City files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes on property owed by the City become delinquent, and the City fails to timely and properly follow the legal procedures for protest or contest. g. The City changes the general character of its business as conducted on or following the date this Agreement is approved by the Corporation. 14. Notice of Default. Should the Corporation determine that the City is in default under the terms of this Agreement, the Corporation shall notify the City in writing of the event of default and provide 60 days from the date of the notice ("Cure Period ") for the City to cure the event of default. 15. Results of Uncured Default. After exhausting good faith attempts to address any default during the Cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of the City, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period: a. The City shall immediately repay to Corporation, with interest at the interest rate paid by the City on its most recently issued general obligation bonds from date of expiration of Cure Period until fully paid, all funds not used under terms of this Project Agreement. b. The City shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation. c. The Corporation shall have no further obligations to the City under this Project Agreement and this Project Agreement shall terminate. d. The Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 16. No Waiver. EXHIBIT "D" Page 5_of 9 H:\ HOME1Rachelie1GEN \Drainage13428 -Salt Flats Levee System\Seawall Project Agreement.doc a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Project Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Project Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Project Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Project Agreement. c. Any waiver or indulgence of the City's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time the City is in default in any of its conditions or covenants of this Project Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Project Agreement on account of the default. 17. Notices. a. Any required written notices shall be sent, certified mail, return receipt requested, addressed as follows: If to the City: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469 -9277 If to Corporation: City of Corpus Christi Business and Job Development Corporation Attn: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. Notice is effective upon deposit in the United States mail in the manner provided in subsection a of this section. 18. Incorporation of other documents. The Corpus Christi Business & Job Development Corporation 4A Board Affordable Housing Request for Proposals issued April 7, 2008, is incorporated into this Project Agreement. H: \HOME\Rachelle\GEN\Drainage \342 &Salt Flats Levee System\Seawall Project Agreement.doc 19. Relationship of Parties. In performing this Agreement, the Corporation and the City shall act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint- venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 20. Nonassignment. The City may not assign, mortgage, pledge, or transfer this Project Agreement or any interest contained in this Project Agreement without the prior written consent of the other parties to this Project Agreement. 21. Non - discrimination. a. The City may not discriminate nor permit discrimination against any person or group of persons on the grounds of race, gender, disability, religion, age, or national origin in any manner prohibited by the laws of the United States or the State of Texas. b. The City Manager retains the right to take any action the United States or the State of Texas may direct to enforce this non - discrimination covenant. 22. Captions. The captions in this Project Agreement are for convenience only and are not a part of this Project Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Agreement. 23. Entire Agreement. This Project Agreement and the referenced and incorporated documents constitute the entire agreement between the Corporation, the City, and the City for the purpose stated. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Project Agreement, unless contained in this Project Agreement, are expressly revoked, as the parties intended to provide for a complete understanding, within the provisions of this Project Agreement and its referenced and incorporated documents, of the terms, conditions, promises, and covenants relating to the each party's required performance under this Project Agreement. H:\ HOME\Rachelle \GEN\Orainage\3428 -Salt Flats Levee System \Seawall Project Agreement.doc CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION Eloy Salazar President Date ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary 'Angel R. Escobar City Manager Date: Date: APPROVED AS TO FORM: R. Jay Reining First Assistant City Attorney for the City Attorney H:\ HOME\Rachelle \GEN\Drainage\3428 -Salt Flats Levee System \Seawall Project Agreement.doc EXHIBIT "D" Page 8 of 9 EXHIBIT A PROJECT 6A SALT FLATS LEVEE SYSTEM — PHASE I SHORT -TERM IMPROVEMENTS The Salt Flats Levee System provides backwater protection during storms. It is located parallel to Stroman Avenue and extends from the docks along the Corpus Christi Ship Channel to just south of West Broadway which keeps flood water from backing into the downtown area from the Ship Channel during storms. The short-term improvements will consist of levee maintenance, replacement of existing storm water outfall flap gates at seven locations, security improvements to deter theft and vandalism of aluminum stop log structures (storm gates), and investigation and evaluation strategy for FEMA certification. FEMA is currently updating flood maps which may require a Phase 2 -Long Term Improvements once the information is available and would be proposed in the future if necessary. ORDINANCE APPROPRIATING $1,100,000.00 FROM CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION INTO THE NO. 3271 SEAWALL SYSTEMS CIP FUND FOR SALT FLATS LEVEE SYSTEM -- PHASE 1; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $1,100,000.00 from Corpus Christi Business and Job Development Corporation into the No. 3271 Seawall Systems CIP Fund is appropriated for Salt Flats Levee System -- Phase 1. 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 , 2010. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: March , 2010 R. Jay Reining First Assistant City Attorney For City Attorney H: \HOME\Rachelle1GEN\Drainage1342 8-Salt Flats Levee System\Ordinance.doc Joe Adame Mayor Corpus Christi, Texas day of , 2010 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 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 H:I HOME \Rachelle \GEN \Drainagel3428 -Salt Flats Levee System\Ordinance.doc CONTRACT SUMMARY 1. SUBJECT: Salt Flats Levee System — Phase 1 (Project No. 3428 / CIP No. PH 18) The current Salt Flats Levee System has maintenance issues that include tree removal and side slope restoration, flap gate replacement and security at gate structures. The improvements are necessary to ensure that the system will function as originally designed. Design, construction plans and bid documents will be prepared to construct as quickly as practical the necessary repairs to afford the level of protection provided in the original levee design. The second part of this project is the preparation of a comprehensive guidance document for the re- certification of the Salt Flats Levee System. The re- certification is necessary if these structures are to be considered when FEMA produces the updates to the area's base flood maps. Failure to certify these levees would result in increased flood insurance for existing structures within the Salt Flats and downtown area, as well as an increase in the required minimum floor elevations for new structures. The guidance document will include detailed surveys, geotechnical investigations, preliminary designs for structure repairs and cost estimates for required improvements. Additionally, the document will provide suggestions for potential grants for necessary improvements as well as an action plan which will assist the City in scheduling capital expenditures on the system. 2. SCOPE OF SERVICES The A/E hereby agrees, at its own expense, to perform professional services necessary to review and prepare plans, specifications, and bid and contract documents. In addition, A/E will provide monthly status updates (project progress or delays, gantt charts presented with monthly invoices) and provide contract administration services, as described in Exhibit "A" and "A-1", to complete the project. 3. SCHEDULE PROPOSED PROJECT SCHEDULE For Basic Services and Items 1 thru 7 of th Day Date Activity Wednesday March 17, 2010 Begin Design Monday June 14, 2010 Interim Submittal Tuesday July 6, 2010 City Review Monday August 30, 2010 Pre -Final Submittal Monday September 20, 2010 City Review Wednesday October 13, 2010 Final Submittal Monday Oct. 25 & Nov. 1, 2010 Advertise for Bids Tuesday November 9, 2010 Pre -Bid Conference Wednesday December 1, 2010 Receive Bids Tuesday December 21, 2010 Contract Award Monday January 18, 2011 Begin Construction Weekday August 2011 _ Complete Construction H: IHOME 1Rachelle\GEMDrainage13428-Salt Flats Levee System\Contract Summary.doc PROPOSED PROJECT SCHEDULE For item 8 of the Additional Services Day Date Activity Wednesday March 17, 2010 Begin Study Monday December 27, 2010 Draft Report Monday January 17, 2011 City Review Monday March 14, 2011 100% Submittal Monday April 4, 2011 City Review Wednesday April 27, 2011 Final Submittal 4. FEES Fee for Basic Services 1. Preliminary Phase $3,706 2. Design Phase $16,063 3. Bid Phase $1,235 4. Construction Phase $3,706 Subtotal Basic Services Fees $24,710 Fee for Additional Services (Allowance) 1. Permit Preparation $0 2. ROW Acquisition Survey (AUTHORIZED) $0 3. Topographic Survey /Field Investigation (AUTHORIZED) $11,765 4. Environmental Issues $3,000 5. Construction Observation /Inspection Services $6,050 6. Start -up Services $0 7. Warranty Phase $2,500 8. FEMA Levee Certification Guidance Document $255,029 Sub -Total Additional Services Fees Authorized $278,344 Total Authorized Fee $303,054 H: HOMElRachelle\GEMDrainage13428 -Salt Flats Levee System \ Contract Summary.doc File : \Mproject councilexhibits \ exh3428c. d wg PROJECT LOCATION McGLOIN RD. W. POINT LOCATION MAP NOT TO SCALE SHIP CHANNEL PROTECTED AREA PROJECT SITE w\ Imo. +. mcnvna, %.__.II LJLILJ x011 E1 1FE7�LCEi� 6EB=EiLUL❑L �� n � __tk eeo�--iLL — ei eee ❑eonI1 /��� 8 eeEj I fl iii C --= 00'9=H--.±3cE65W -�-on L..�ac�DEI m I-0���1 T li no PROJECT # 3428 i� k 13J \ PThV\E� SITE LOCATION \a n° NOT TO SCALE CORPUS CHRISTI' BAY EXHIBIT "G" SALT FLATS LEVEE SYSTEM CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 02 -23 -2010 - - MEW MUM 18 AGENDA MEMORANDUM City Council Action Date: March 9, 2010 SUBJECT: Mary Rhodes Pipeline Phase 2 (Project No. E10008 / CIP No: WAWS 01) Parent Project: Garwood Water Supply Project (Project No. 8424) AMENDMENT NO. 4 AGENDA ITEM: A. Resolution establishing the City's intention to reimburse itself, in an amount not to exceed $8,000,000, for the prior lawful expenditure of funds from the proceeds of obligations to be issued by the City for authorized purposes relating the Utility System; authorizing matters incident and related thereto; and providing an effective date. B. Ordinance advancing $8,000,000 from the No. 4050 - Choke Canyon Fund to and appropriating into the No. 4087 Water 2010 TWDB -WIF Loan Fund for expenditures related to the planning, design, and permitting of a pipeline and related facilities between the Colorado River and the Mary Rhodes Pipeline pumping facility at Lake Texana; providing for repayment of the $8,000,000 to the No. 4050 - Choke Canyon Fund from the sale of bonds to the Texas Water Development Board; and declaring an emergency. C. Motion authorizing the City Manager or his designee to execute Amendment No. 4 to the Contract for Professional Services with Freese and Nichols, Inc. of Corpus Christi, Texas, in the amount of $9,676,590, for a total restated fee of $10,990,177 for Mary Rhodes Pipeline Phase 2 for preliminary design, design, bidding and construction phase services and additional services. ISSUE: This item was tabled on February 16, 2010 to allow staff and the consultant, Freese and Nichols, to investigate ways to increase local firm participation in the project. Freese and Nichols will be presenting a PowerPoint presentation describing their plan (see Exhibit G). This is the next phase of the Garwood Water Supply Project, "Mary Rhodes Pipeline Phase 2 ", to support continued growth in the following counties: Aransas, Bee, Brooks, Duval, Jim Wells, Kennedy, Kleberg, Live Oak, McAIIen, Nueces and San Patricio. The project proposes a 54" — 60" pipeline that extends approximately 40 miles to connect the existing Mary Rhodes pipeline south of Lake Texana to the Colorado River near Bay City. This pipeline along with additional improvements to the existing Mary Rhodes pipeline facilities will provide for typical flows of 31 Million Gallons per Day (MGD) with peak flows up to 46 MGD. This provides for the engineering, design and land acquisition services to be ready for construction within two years. This also provides for the permitting which will allow final route selection from the two current proposed routes. The construction is planned to be completed in four parts to allow maximum competition and accelerated construction by concurrently completing the four parts. FUNDING: Funding for this project will be from the funds included in the Water Capital Improvement Budget FY 2010 and from financial assistance from the Texas Water Development Board (TWDB) through the Water Infrastructure Fund (WI F) in the amount of $8,000,000. All loans C:\ DOCU ME_t\rebeccah\LOCALS— t \Temp\2 AGENDA MEMO.doc through the WIF are offered at a subsidized interest rate which is 2 percent below the Texas Water Development Board's cost of funds. Repayment periods are a maximum of 20 years with no interest or payments for the first 10 years. In order to expedite the project, the No. 4050 - Choke Canyon Fund will advance $8,000,000 to the No. 4087 Water 2010 TWDB -WIF Loan Fund until which time the proceeds are received from the issuance of the loan, estimated to be in April 2010. At that time $8,000,000 will be refunded to the No. 4050 - Choke Canyon Fund. 6 M N i 10 : Staff recommends approval of the Re lution and Motions presented. -' E. Pete Anaya, P.E. rations Director of Engineering Services 361- 826 -3781 petean @cctexas.com usta o Gonza ez, P Directo of Water Op 361- 826 -1874 gustavogo @cctexas.com Additional Exhibit "A" Exhibit "B" Exhibit "C" Exhibit "D" Exhibit "E" Exhibit "F" Exhibit "G" Support Material: Background Information Prior Actions Contract Summary Resolution Ordinance Location Map Presentation H:\HOME\Kelly° \GEN\ WATER \Mary Rhodes \E10008- Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2\2 AGENDA MEMO.doc AGENDA BACKGROUND INFORMATION SUBJECT: Mary Rhodes Pipeline Phase 2 (Project No. E10008 / CIP No: WAWS 01) Parent Project: Garwood Water Supply Project (Project No. 8424) AMENDMENT NO. 4 PROJECT DESCRIPTION: This is part of the Garwood Water Supply Project to extend the Mary Rhodes Raw Water Pipeline. The project consists of a new pipeline that will transport raw water from a new intake structure on the Colorado River near Bay City to the Lavaca Navidad River Authority's existing West Water Delivery Station south of Lake Texana and into the existing Mary Rhodes Pipeline. The water will be transported to the City of Corpus Christi through the Mary Rhodes Pipeline and facilities to be used by the City for irrigation, municipal and industrial purposes. The proposed 40 -mile pipeline consists of and intake pump station on the Colorado River and 54" — 60" pipe that connects Lake Texana to the Colorado River near Bay City. The West Water Delivery Station, Bloomington Intermediate Pump Station and Woodsboro Intermediate Pump Station, will be upgraded with new pumps and water storage to accommodate the additional Garwood water. The construction is planned to be completed in four parts to allow maximum competition and accelerated construction by concurrently completing the four parts. 1. Colorado River Intake and Pump Station with improvements to the Lake Texana Intake Pump Station, Bloomington Pump Station and Woodsboro Pump Station; 2. Garwood Raw Water Pipeline, east section; 3. Garwood Raw Water Pipeline, central section; and 4. Garwood Raw Water Pipeline, west section. Electrical substations and power transmission lines will be provided by the electrical utility franchises. AMENDMENT NO. 4 DESCRIPTION: The proposed amendment consists of providing preliminary and final design phase services including an engineering feasibility report, preparation of the construction contract documents and the land acquisition services for the City's Mary Rhodes Pipeline Phase 2 to extend the pipeline from south of Lake Texana to the Colorado River near Bay City. The project scope includes: • Approximately 40 miles of 54" — 60" raw water pipeline and associated appurtenances; • Colorado River Pump Station and Intake with a peak flow of 46 MGD and typical flows of 31 MGD; EXHIBIT "A" Page 1 of 4 HAHGMR∎Renv(NGEN\wATER\EtOOOR- Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2\3 AGENDA BACKGROUND.doc • Addition of one pump and variable frequency drive (VFD), including electrical and instrumentation equipment, piping and valve to support the pumping unit at the Lake Texana Intake Pump Station; • Additional piping, ground storage tank, control systems, flow monitoring, and modifications to the existing piping for connection and integration of the proposed Garwood facilities to the existing Lake Texana Intake Pump Station; • Addition of one pump and variable frequency drive (VFD), including electrical and instrumentation equipment, piping and valve and addition of approximately 8 MG of water storage to support the pumping unit at the Bloomington Pump Station; and • Addition of one pump and variable frequency drive (VFD), including electrical and instrumentation equipment, piping and valve and addition of approximately 8 MG of water storage to support the pumping unit at the Woodsboro Pump Station. The estimated cost of construction for the Mary Rhodes Pipeline Phase 2 is $115,000,000. The basic services fee proposal for Amendment No. 4 is $5,885,336; therefore, the percentage of basic engineering services cost to construction cost for Amendment No. 4 is 5.12 %. The consultant will begin the permitting, preliminary design and field work which will include obtaining right of entry land for approximately 390 parcels along the two alternate routes. The final route will be determined with completion of the preliminary phase and the permit approvals. Based on the final route, the consultant will initiate the design phase and acquisition of approximately 200 land parcels depending on which route is selected. The purchase of the land parcels will be funded from the Water Supply CIP, WAWS No. 1. CONSULTANT SELECTION: The City solicited a request for proposals for the Garwood Routing Plan & Land Acquisition in 2001, RFP No. 2001 -06. Eight firms responded to the request and submitted proposals. Three firms were short listed and interviewed. The firm of Freese and Nichols, Inc. was deemed to offer the best approach and was deemed most qualified to perform the required services. The recommendation was submitted to City Council and approved in September 2001. Both the RFP and the recommendation specifically included provisions that clearly stated future amendments to include the design, bid and construction phase services would be considered. CONTRACT SUMMARY /FEE: A contract summary and fee is attached as Exhibit "C ". FUTURE COUNCIL ACTION: Approval of a resolution recognizing the public necessity of acquiring utility easements for the Mary Rhodes Phase 2 project, approval for purchase of the land parcels and approval of the construction contract to complete the project will be required. PROJECT BACKGROUND: The need for this project stems from the large protected population growth in the region. According to the 2005 Initially Prepared Regional Water Plan (IPP), the population in the coastal bend region will increase from 569,292 in the year 2000 to 885,665 in the year 2060. This is a projected population increase of 55.6 percent. EXHIBIT "A" Page 2 of 4 H :\HOME\Ke11yO\GEN\WATER\E10008- Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2'3 AGENDA BACKGROUND.doc This projection would call for an increase of 102,641 acre -feet per year of water during those sixty years. The Garwood Water Supply Project would be able to account for over 30 percent of the required increase in water demand during that time. The projected populations are based upon a consensus "most likely" scenario of growth. According to the Coastal Bend Regional Planning Group, this is based on "recent and prospective growth trends as determined by the opinions of a Technical Advisory Committee consisting of state agencies, key interest groups, and the general public." The projected water use correlates to the projected increase in the region's population. Also taken into account in these calculations is a declining per capital water use, manufacturing water use efficiencies, power generation projections, the production of mineral commodities, estimates of the maximum livestock carrying capacity if the area's rangeland, estimated number of gallons of water per head of livestock, and assumptions regarding crop prices, crop yields, agriculture policy, and technological advances in irrigation. The water from this project will go directly to the City of Corpus Christi. The City also sells water to the South Texas Water Authority (STWA), and the San Patricio Municipal Water District (SPMWD). Together, these three entities distribute water to cities, water districts, large industrial facilities located on the La Quinta Ship channel, and water supply corporations providing water to residential, commercial, and industrial companies. At their December 17, 2009 meeting, the Texas Water Development Board approved a commitment for the City of Corpus Christi in the amount of $8,000,000 from the Water Infrastructure Fund - Deferred Program. The Board currently has some funds available in the WIF program that may be utilized on a first come first serve basis. At the Board meeting, representatives from the City expressed an interest in utilizing these existing funds and closing in either January or February. The detailed funding application to TWDB was submitted on October 1st, 2009. On August 23rd, 2009, the TWDB Staff recommended approval of the project for financial assistance through the Water Infrastructure Fund (WIF). All loans through the WIF are offered at a subsidized interest rate which is 2 percent below the Texas Water Development Board's cost of funds. Repayment periods are a maximum of 20 years. On July 25th, 2009, the City Council approved a resolution requesting financial assistance from the Texas Water Development Board (TWDB) in the amount of $8,000,000 for the planning, design, and permitting of a pipeline and related facilities between the Colorado river and the Mary Rhodes pipeline pumping facility at Lake Texana; authorizing the filing of an application for assistance; and making certain findings in connection therewith. GARWOOD WATER RIGHTS: In September 1992, the City of Corpus Christi entered into an option agreement for the purchase of up to 35,000 acre - feet/year from the Garwood Irrigation Company. The Garwood Irrigation Company (Garwood) held the most significant senior water right in the EXHIBIT "A" Page 3 of 4 HA HOME Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2 U AGENDA BACKGROUND.doc Lower Colorado River Basin. This water right authorized the diversion of 168,000 acre - feet/year from the Colorado River at a maximum rate of 750 cfs, or 1,488 acre -feet per day. Most of Garwood's service area lies outside the Colorado River Basin, and currently uses a large part of its right for irrigation of land that is located in the Lavaca - Navidad River Basin. In 1993, the Texas Commission for Environmental Quality (TCEQ) (formerly titled the Texas Natural Resource Conservation Commission) authorized an amendment to Garwood's water right that allows for the use of 35,000 acre -feet of its right to be used for municipal and industrial purposes. On October 7, 1998, the TCEQ approved the City of Corpus Christi's purchase of the 35,000 acre - feet/year from the Garwood Irrigation Company. The amendment of the certificate of adjudication authorizes the City of Corpus Christi to divert 35,000 acre - feet/year from the Colorado River for irrigation, municipal and industrial purposes at a rate not to exceed 150 cfs. The certificate also subordinates the 35,000 acre - feet/year to the remaining portion of the original Garwood Irrigation water right. EXHIBIT "A" Page 4 of 4 H:\HOME \Kelly° \GEN\ WATER \E10008- Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2\3 AGENDA BACKGROUND.doc PRIOR PROJECT ACTIONS SUBJECT: Mary Rhodes Pipeline Phase 2 (Project No. E10008 / CIP No: WAWS 01) Parent Project: Garwood Water Supply Project (Project No. 8424) AMENDMENT NO. 4 PRIOR COUNCIL ACTION: 1. October 28, 2003 — Motion authorizing the City Manager, or his designee, to execute an engineering services contract with Freese and Nichols, Inc., of Fort Worth, Texas in an amount not to exceed $116,100 for Garwood Water Supply Pipeline Routing Plan, Phase 1 services. (M2003 -394) 2. October 19, 2004 — Motion authorizing the City Manager, or his designee, to execute Amendment No. 1 to the engineering services contract with Freese and Nichols, Inc., of Fort Worth, Texas in an amount not to exceed $285,490 for Garwood Water Supply Pipeline Routing Plan, Phase 2 services. (M2004 -387) 3. December 18, 2007 — Motion authorizing the City Manager, or his designee, to execute Amendment No. 2 to the engineering services contract with Freese and Nichols, Inc., of Fort Worth, Texas in an amount not to exceed $911,997 for Garwood Water Supply Pipeline Routing Plan, Phase 2A services. (M2007 -334) PRIOR ADMINISTRATIVE ACTION: 1. September 17, 2001 — Distribution of Request for Proposals (RFP) No. 2001 -06 Garwood Water Pipeline Routing Plan & Land Acquisition. 2. October 22, 2001— Addendum No. 1 to the Request for Proposals (RFP) No. 2001 -06 Garwood Water Pipeline Routing Plan & Land Acquisition. 3. March 11, 2009 — Administrative approval of Amendment No. 3, a zero (0) fee amendment, to the engineering services contract with Freese and Nichols, Inc., of Corpus Christi, Texas for Garwood Water Supply Pipeline Routing Plan, Phase 2A. H :\HOMEVCeIIyO\GEN\WATER\E10008- Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2 44 PRIOR ACTIONS.doc EXHIBIT B" Page 1 of 1 CONTRACT SUMMARY / AMENDMENT NO. 4 SUBJECT: Mary Rhodes Pipeline Phase 2 (Project No. El 0008 / CIP No: WAWS 01) Parent Project: Garwood Water Supply Project (Project No. 8424) AMENDMENT NO. 4 1. SCOPE OF SERVICES A. BASIC SERVICES —shall be amended to expand Basic Services to include the following: Item No. 2 Preliminary Phase (Authorized) • Provide Preliminary Phase Services to provide a study and report of project scope with economic and technical evaluation of alternatives, and upon approval, proceed in a letter engineering report which includes Preliminary designs, drawings, and written description of the project. Item No. 3 Design Phase (Not Authorized) • Upon the approval of the Preliminary Phase, provide Design Phase Services consisting of verifying and implementing the Design Memorandum, prepare City format contract documents, prepare estimates of probable cost, provide assistance in identifying testing during construction, furnish one copy of interim plans and assimilate modifications, provide QA/QC to ensure the submittal of the complete plans and bid documents do not necessitate excessive revision, provide a Traffic Control Plan if required, submit monthly status reports and provide a Storm Water Pollution Prevention Plan. Item No. 4 Bid Phase (Not Authorized) • Participate in pre -bid conference, assist City in solicitation of bids, review all pre -bid questions concerning bid documents, prepare any addenda prior to bidding, attend bid opening, analyze bids, evaluate and prepare bid tabulation, and make recommendations concerning award of the contract. Item No. 5 Construction Phase (Not Authorized) • Participate in pre- construction meeting, review for conformance to contract documents, drawings and other submittals, review field and laboratory tests, provide clarifications of contract documents for contractor, make regular visits to Project site to observe quality to work, prepare authorized change orders, make final inspection, submit monthly reports of construction progress, establish and maintain project documentation system, review quality related documents provided by contractor, establish procedures for administering constructive changes to the construction contracts and assist in the transfer of and acceptance by the contractor of any Owner furnished equipment or materials. ....s..v,..roxv_ a .ntr- nln.ve rnotvtnoon_ M..., a},,,,t.. P n lin. Phase 2 \Amendment No. 4- Mary Rhodes Phase 2 \5 CONTRACT SUMMARY.doc B. ADDITIONAL SERVICES —shall be added to Scope of Services and include the following additional services: Item No. 1 Permitting (Authorized) • Furnish the City all engineering data and documentation necessary for all required permits as applicable to the appropriate local, state, and federal authorities including by not limited to Texas Department of Licensing and Regulation (TDLR). Item No. 2 Right -of -Way (ROW) Acquisition Survey (Authorized) • Review existing ROW and easements to ascertain and conflicts and provide field ROW surveys and submit ROW plats and descriptions for the City's use in the acquisition process. All work must be tied to and conform to the City's Global Positioning System (GPS). Item No. 3 Topographic Survey (Authorized) • Provide field surveys including control points, coordinates and elevations of points for aerial mapping. Establish base survey controls for line and elevation staking. All work must be tied to and conform to the City's Global Positioning System (GPS). Item No. 4 Subsurface Utility Exploration (Authorized) • Provide subsurface utility engineering investigation consisting of the following: excavation, location of utilities including, storm water facilities, wastewater facilities, water facilities and gas facilities and coordinate with local utility franchises to achieve Quality Level A. Item No. 5 Aerial Photography (Authorized) • Provide high - resolution color aerial photography for use in the design drawings. Establish ground control with GPS techniques and tie all control to the State Plane Coordinate System, NAD 83. Item No. 6 Corrosion Engineering (Authorized) • Provide a soil corrosivity study consisting of the following: document review, field soil resistivity testing, soil analysis, foreign utility observation, letter report and prepare corrosion control design documents including plans and specifications and estimate of probable cost. Item No. 7 Surge Analysis (Authorized) • Provide the following services for the proposed Mary Rhodes Pipeline Phase 2 pipeline and pump station: 1. Phase I — Collect Data 2. Phase II — Model Development (Develop numerical models for the appropriate software procedure based on system parameters as provided in Phase I. Phase II includes steady state simulations for design flow rates. 3. Phase III — Transients Case Simulations (Recommend case simulations for investigation) 4. Phase IV — Report Preparation (Review and interpret results of computer IEXHIBIT "C" Page 2 of 6 simulations and provide three copies of a written report with graphs and plots of simulation results. Item No. 8 Geotechnical Investigation (Authorized) • Provide the geotechnical investigation and report consisting of field exploration, laboratory testing, engineering analysis and report and final design phase consultation. Item No. 9 Archeological Investigation (Authorized) • Provide services to analyze topographic, soil, geological and historic maps, aerial photographs, perform field survey, prepare technical report and application for antiquities permit from Texas Historical Commission. Item No. 10 Hydraulic Modeling (Authorized) • Perform hydraulic modeling. This firm will create a scalable physical model of the Colorado River Intake and Pump Station and provide resulting design recommendations. Item No. 11 ROW Acquisition (Authorized) • Perform easement acquisition services consisting of the following: deed research for use in creating easement documents for approximately 200 properties, conduct land cost research to develop compensation offers for property owners and meet with City to discuss, act as City's agent to purchase temporary and permanent easements for a maximum of 200 parcels and participate in bi- weekly meetings with City to discuss property acquisition. Item No. 12 Construction Observation Services (TBD) • Provide a project representative (PR) to provide periodic construction inspection consisting of observation of Contractor's work in progress and field checks of materials and equipment. PR will attend required conferences and meetings, serve as a liaison with Contractor, interpret contract documents, shop drawings and samples, review of work and reject defective work, maintain files for correspondence and prepare daily reports. The PR will be onsite full -time (40 hours /week) for the first 12 weeks and then part -time (20 hours /week) for the remaining 60 weeks. Item No. 13 Start-Up Services (TBD) • Provide onsite services and verification for all start -up procedures during actual start up of major Project components, systems, and related appurtenances if needed and required. Item No. 14 O &M Services (Authorized) • Prepare the Designer's suggested Operations and Maintenance Manual for the project during the Design Phase. The manual will cover normal and contingency operations instructions and is intended to supplement O &M manuals from the equipment suppliers. The manual will include the designer's suggested operation and maintenance activities, test data, curves and Tme,c.nnn..r__. ur..am o:...t:.. P1,... ots,...nd.,.w.r Nn 4_ Mary Rhodes Phase 2 \5 CONTRACT SUMMARY.doc maintenance schedules. Hard and electric copies will be furnished. Item No. 15 Warranty Phase (TBD) • Provide maintenance guaranty inspection toward the end of the one -year period after acceptance of the Project. Complete the inspection and prepare the report no later than sixty (60) days prior to the end of the maintenance guaranty period. Item No. 16 Provide SCADA Documentation (TBD) Provide standardized SCADA documentation including PDFs, P &IDs, loop sheets, logics, SCADA architecture, DCS I/O lists, instruments lists, piping lists, equipment lists, and instrumentation specification sheets. 2. SCHEDULE DAY DATE ACTIVITY Monday February 22, 2010 Begin Preliminary Design Phase Monday May 3, 2010 Begin Field Investigations Monday July 26, 2010 Submit Prelim Design Report Monday January 3, 2011 Environmental Clearance Monday January 3, 2011 Begin Final Design Phase Friday September 9, 2011 Submit Final Design Documents TBD TBD Begin Bid Phase TBD TBD Begin Construction Phase 3. FEES H:\HOME \KellyO \GEN\WATER\E10008- Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2\5 CONTRACT SUMMARY.doc ORIGINAL CONTRACT (8424) AMD. NO. 1 (8424) AMD. NO. 2 (8424) BASIC SERVICES 1 Study Phase $116,100.00 $285,490.00 $911,997.00 2 Preliminary Phase (Authorized) 0.00 0.00 0.00 3 Design Phase (Not Authorized) 0.00 0.00 0.00 4 Bid Phase (Not Authorized) 0.00 0.00 0.00 5 Construction Phase (Not Authorized) 0.00 0.00 0.00 Subtotal Basic Services 116,100.00 285,490.00 911,997.00 ADDITIONAL SERVICES 1 Permitting (Authorized) 0.00 0.00 0.00 2 ROW Acquisition Survey ( Not Authorized) 0.00 0.00 0.00 3 Topographic Survey (Authorized) 0.00 0.00 0.00 4 Subsurface Utility Exploration (Authorized) 0.00 0.00 0.00 5 Aerial Photography (Authorized) 0.00 0.00 0.00 6 Corrosion Engineering (Authorized) 0.00 0.00 0.00 7 Surge Analysis (Authorized) 0.00 0.00 0.00 8 Geotechnical Investigation (Authorized) 0.00 0.00 0.00 9 Archeological Investigation (Authorized) 0.00 0.00 0.00 10 Hydraulic Modeling (Authorized) 0.00 0.00 0.00 11 ROW Acquisition ( Not Authorized) 0.00 0.00 0.00 12 Construction Observation Services 0.00 0.00 0.00 13 Start-Up Services 0.00 0.00 0.00 14 0 & M Services (Authorized) 0.00 0.00 0.00 15 Warranty Phase 0.00 0.00 0.00 16 Provide SCADA Documentation 0.00 0.00 0.00 Subtotal Additional Services 0.00 0.00 0.00 TOTAL AUTHORIZED FEE $116,100.00 $285,490.00 $911,997.00 H:\HOME \KellyO \GEN\WATER\E10008- Mary Rhodes Pipeline Phase 2\Amendment No. 4- Mary Rhodes Phase 2\5 CONTRACT SUMMARY.doc *The proposed fees are based on 2010 dollars and will be subject to negotiation for the final scope and current year dollars at the time professional services are authorized for bid and construction phases. The construction services fee is based on construction duration of 2 years. The estimated cost of construction for the Mary Rhodes Pipeline Phase 2 is $115,000,000. The basic services fee proposal for Amendment No. 4 is $5,885,336; therefore, the percentage of basic engineering services cost to construction cost for Amendment No. 4 is 5.12 %. H:\HOME\KellyO \GEN\WATER\E10008- Mary Rhodes Pipeline Plisse 2\Amendment No. 4- Mary Rhodes Phase 2\5 CONTRACT SUMMARY.doc AMD. NO. 3 (8424) AMD. NO. 4 (E10008) TOTAL BASIC SERVICES 1 Study Phase $0.00 $0.00 $1,313,587.00 2 Preliminary Phase 0.00 1,514,814.00 $1,514,814.00 3 Design Phase (Not Authorized) 0.00 3,068,522.00 $3,068,522.00 4 Bid Phase (Not Authorized) 0.00 102,000.00 $102,000.00 5 Construction Phase (Not Authorized) 0.00 1,200,000.00 $1,200,000.00 Subtotal Basic Services 0.00 5,885,336.00 $7,198,923.00 ADDITIONAL SERVICES 1 Permitting (Authorized) 0.00 267,414.00 267,414.00 2 ROW Acquisition Survey (Not Authorized) 0.00 350,000.00 350,000.00 3 Topographic Survey (Authorized) 0.00 891,165.00 891,165.00 4 Subsurface Utility Exploration (Authorized) 0.00 286,000.00 286,000.00 5 Aerial Photography (Authorized) 0.00 23,750.00 23,750.00 6 Corrosion Engineering (Authorized) 0.00 122,768.00 122,768.00 7 Surge Analysis (Authorized) 0.00 104,181.00 104,181.00 8 Geotechnical Investigation (Authorized) 0.00 312,737.00 312,737.00 9 Archeological Investigation (Authorized) 0.00 184,650.00 184,650.00 10 Hydraulic Modeling (Authorized) 0.00 37,398.00 37,398.00 11 ROW Acquisition ( Not Authorized) 0.00 1,060,601.00 1,060,601.00 12 Construction Observation Services 0.00 TBD TBD 13 Start -Up Services 0.00 TBD TBD 14 0 & M Services (Authorized) 0.00 150,590.00 150,590.00 15 Warranty Phase 0.00 TBD TBD 16 Provide SCADA Documentation 0.00 TBD TBD Subtotal Additional Services 0.00 3,791,254.00 3,791,254.00 TOTAL AUTHORIZED FEE $0.00 $9,676,590.00 $10,990,177.00 *The proposed fees are based on 2010 dollars and will be subject to negotiation for the final scope and current year dollars at the time professional services are authorized for bid and construction phases. The construction services fee is based on construction duration of 2 years. The estimated cost of construction for the Mary Rhodes Pipeline Phase 2 is $115,000,000. The basic services fee proposal for Amendment No. 4 is $5,885,336; therefore, the percentage of basic engineering services cost to construction cost for Amendment No. 4 is 5.12 %. H:\HOME\KellyO \GEN\WATER\E10008- Mary Rhodes Pipeline Plisse 2\Amendment No. 4- Mary Rhodes Phase 2\5 CONTRACT SUMMARY.doc Page 1 of 6 RESOLUTION ESTABLISHING THE CITY'S INTENTION TO REIMBURSE ITSELF, IN AN AMOUNT NOT TO EXCEED $8,000,000, FOR THE PRIOR LAWFUL EXPENDITURE OF FUNDS FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY FOR AUTHORIZED PURPOSES RELATING TO THE UTILITY SYSTEM; AUTHORIZING MATTERS INCIDENT AND RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Corpus Christi, Texas ("Issuer") has entered into or will enter into various contracts pertaining to the expenditure of lawfully available funds of the Issuer to finance the costs associated with (i) improvements to the Issuer's combined utility system, (ii) the payment of various engineering costs, including design testing, design engineering, and construction inspection related to the Construction Costs ( "Engineering Costs "), (iii) the payment of various architectural costs, including preparation of plans and specifications and various other plans and drawings related to the Construction Costs ( "Architectural Costs "), and (iv) the payment of various administrative costs, including the fees of bond counsel, financial advisor, project manager, other professionals, and bond printer ( "Administrative Costs ") [the Construction Costs, the Engineering Costs, the Architectural Costs, and the Administrative Costs collectively constitute the costs of the project that is the subject of this Resolution ( "Project ")]; WHEREAS, the Project is more specifically described in Exhibit A, which is attached to and incorporated into this Resolution; WHEREAS, the provisions of Section 1201.042, as amended, Texas Government Code provide that the proceeds from the sale of obligations issued to finance the acquisition, construction, equipping, or furnishing of any project or facilities, such as the Project, may be used to reimburse the Issuer, for costs attributable to such project or facilities paid or incurred before the date of issuance of such obligations; WHEREAS, the United States Department of Treasury issued Section 1.150 -2, Title 26, Code of Federal Regulations ( "Regulations) which establishes when the proceeds of obligations are spent and therefore are no longer subject to various federal income tax restrictions contained in the Internal Revenue Code of 1986, as amended; WHEREAS, the Issuer intends to reimburse itself, within eighteen months from the later of the date of expenditure or the date the property financed is placed in service (but in no event more than three years after the original expenditures is paid), for the prior lawful capital expenditure of funds from the proceeds of the Issuer's "Utility System Revenue Improvement Bonds, Series 2010" ( "Obligations ") that the Issuer currently contemplates issuing in an approximate amount of $8,000,000 to finance a portion of the costs of the Project; Mary Rhodes Extension Reimbursement Resolution (JayR) Page 2 of 6 WHEREAS, under the Regulations, to fund such reimbursement with proceeds of the Obligations, the Issuer must declare its expectation ultimately to make such reimbursement before making the expenditures; WHEREAS, the Issuer finds and determines that the reimbursement for the prior expenditure of funds of the Issuer is not inconsistent with the Issuer's budgetary and financial circumstances; and WHEREAS, the City Council finds and determines that the adoption of this Resolution is in the best interests of the citizens of the Issuer; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. This Resolution is a declaration of the City's intent to establish the Issuer's reasonable, official intent under the Regulations to reimburse itself from certain of the proceeds of the Obligations for any capital expenditures previously incurred (not more than 60 days prior to the date of this resolution) with respect to the Project from the Issuer's General Fund or other lawfully available funds of the Issuer. SECTION 2. The Issuer intends to issue the Obligations and allocate within 30 days after the date of issue of the Obligations the proceeds from the Obligations to reimburse the Issuer for prior lawful expenditures with respect to the Project in a manner to comply with the Regulations. SECTION 3. The reimbursement expenditure will be a type properly chargeable to a capital account (or would be so chargeable with a proper election) under general federal income tax principles. SECTION 4. The Issuer intends to otherwise comply, in addition to those matters addressed within this Resolution, with all the requirements contained in the Regulations. SECTION 5. This Resolution may be relied upon by the appropriate officials at the Office of the Attorney General for the State of Texas and establishes compliance by the Issuer with the requirements of Texas law and the Regulations. SECTION 6. With respect to the proceeds of the Obligations allocated to reimburse the Issuer for prior expenditures, the Issuer shall not employ an abusive device under Section 1.148 -10, Title 26, Code of Federal Regulations, including using within one year of the reimbursement allocation, the funds corresponding to the proceeds of the Obligations in a manner that results in the creation of replacement proceeds, as defined in Section 1.148 -1, Title 26, Code of Federal Regulations, of the Obligations or another issue of tax - exempt obligations. SECTION 7. The recitals contained in the preamble of this Resolution are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Mary Rhodes Extension Reimbursement Resolution (JayR) Page 3 of 6 SECTION 8. All ordinances and resolutions, or parts of other ordinances or resolution, which are in conflict or inconsistent with any provision of this Resolution are repealed to the extent of such conflict, and the provisions of this Resolution remain controlling as to the matters resolved in this Resolution. SECTION 9. This Resolution must be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 10. If any provision of this Resolution or the application of this Resolution to any person or circumstance is held to be invalid, the remainder of this Resolution and the application of the provision to other persons and circumstances remains valid, and the City Council declares that this Resolution would have been enacted without such invalid provision. SECTION 11. It is officially found, determined, and declared that the meeting at which this Resolution 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 Resolution, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 12. This Resolution passage, and it is so resolved. ATTEST: remains in force and effect from and after its final Armando Chapa City Secretary APPROVED: 1st day of February, 2010. R. Jay Reining First Assistant City Attorney For City Attorney Mary Rhodes Extension Reimbursement Resolution (JayR) THE CITY OF CORPUS CHRISTI Joe Adame Mayor Page 4 of 6 Corpus Christi, Texas of , 2010 The above resolution 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 Mary Rhodes Extension Reimbursement Resolution (JayR) EXHIBIT A Mary Rhodes Pipeline Phase 2 (Garwood Water Supply Project) Description of Services The Mary Rhodes Pipeline Phase 2, also known as the Garwood Water Supply Project consists of preliminary and final design services for the transmission of water from the Colorado River to the existing Mary Rhodes Pipeline. The transferred water will be diverted under the Garwood Water Right. This right is the most senior in the Lower Colorado River. The City of Corpus Christi's (the City's) portion of the right is 35,000 acre -feet per year. This portion is junior by one day to the original water right held by the Garwood Irrigation Company, currently operated by the Lower Colorado River Authority (LCRA). The City acquired the Garwood water right in 1998. The project will include a new intake on the Colorado River or the rehabilitation of the existing LCRA Gulf Coast Intake Pump Station, a new pump station, approximately 40 miles of transmission pipeline, tie -in to the existing West Water Delivery System, and necessary improvements to the Mary Rhodes Pipeline system. Basic Services for the intake and pump station design will include evaluation of intake alternatives, pump selection, motor selection, HVAC design, conceptual layout of instrumentation and controls, coordination with power supplier, architectural layout, design of a potential settling basin for suspended solids, flow meter layout, structural requirements, and drawing and specification production. The required pump station capacity for the system is approximately 45 MGD. Basic Services for the transmission pipeline will include existing data collection, life- cycle cost analysis, pipeline corridor development, determination of crossings, final route selection, evaluation of pipeline materials, required permitting, and drawing and specification preparation. Services will also include coordination with LCRA to develop an accounting and operating plan for diversion of water from the Colorado River. The approximate pipeline diameter for the project is 54 inches. Basic Services for the tie -in to the Mary Rhodes Pipeline system will include evaluation of alternatives for integration and connection of the proposed Garwood pipeline facilities to the existing Lake Texana Intake suction piping. Services will also include the addition of a water storage tank or wet well at the West Water Delivery System Pump Station. Drawings and specifications will be produced for this tie -in. Basic Services for the necessary improvements to the Mary Rhodes Pipeline system will include the addition of one pump each at the West Water Delivery System Pump Station and the Bloomington and Woodsboro Intermediate Pump Stations. Services will also include ground storage tanks at the intermediate pump stations along with associated piping and flow meters. Lastly, services will include evaluation of the existing electrical equipment for the three existing pump station. Drawings and specifications will be produced for these improvements. A -1 Mary Rhodes Extension Reimbursement Resolution (JayR) In addition to the Basic Services, the Mary Rhodes Pipeline Phase 2 Project will include geotechnical investigation, topographic and boundary survey, easement document preparation, subsurface utility exploration and corrosion protection. Services will also include surge modeling of the proposed system and existing Mary Rhodes Pipeline system, environmental permitting, hydraulic modeling of the proposed intake pump station, and land acquisition services. A -2 Mary Rhodes Extension Reimbursement Resolution (JayR) Page 1 of 3 ORDINANCE ADVANCING $8,000,000.00 FROM THE NO. 4050 — CHOKE CANYON FUND TO AND APPROPRIATING INTO THE NO. 4087 WATER 2010 TWDB -WIF LOAN FUND FOR EXPENDITURES RELATED TO THE PLANNING, DESIGN, AND PERMITTING OF A PIPELINE AND RELATED FACILITIES BETWEEN THE COLORADO RIVER AND THE MARY RHODES PIPELINE PUMPING FACILITY AT LAKE TEXANA; PROVIDING FOR REPAYMENT OF THE $8,000,000.00 TO THE NO. 4050 — CHOKE CANYON FUND FROM THE SALE OF BONDS TO THE TEXAS WATER DEVELOPMENT BOARD; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $8,000,000.00 from the No. 4050 Choke Canyon Fund is advanced to and appropriated into the No. 4087 Water 2010 TWDB -WIF Loan Fund for expenditures related to the planning, design, and permitting of a pipeline and related facilities between the Colorado River and the Mary Rhodes Pipeline pumping facility at Lake Texana. SECTION 2. That the $8,000,000.00 appropriated from the No. 4050 Choke Canyon Fund be repaid from and upon the sale of bonds to the Texas Water Development Board without further action or appropriation by the City Council. SECTION 3. —That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and. (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure on this the day of , 2010. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Temporary Appropriation TWDB WIF 03012010 Joe Adame Mayor Page 2 of 3 APPROVED: March 1, 2010 R.J. - R: ning 7 Fir As istant City Attorney For City Attorney Temporary Appropriation TWDB WIF 03012010 Page 3of3 Corpus Christi, Texas day of , 2010 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 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 Temporary Appropriation TWDB WIF 03012010 \Mproject\councilexhibits\exhE I 0008.dwg Ganado NORTH OPTION INTAKE PUMP STATION Bay City Blessing WEST DELIVERY STATION V�rtderbilt ' a ,et MARY RHODES PIPELINE PROJECT #E10008 LOCATION MAP NOT TO SCALE SOUTH OPTION EXHIBIT "F" MARY RHODES PIPELINE MI Inc CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PME 1 of1 N CU in CO s a V aw . ii, 0 a w c . _ w 0 E 0 w -0 0 s ix l'4 ca 2 N CU in CO s a V aw . ii, 0 a w c . _ w 0 E 0 w -0 0 s ix l'4 ca 2 N CU in CO s a V aw . ii, 0 a w c . _ w 0 E 0 w -0 0 s ix l'4 ca 2 N CU in CO s a V aw . ii, 0 a w c . _ w 0 E 0 w -0 0 s ix l'4 ca 2 N CU in CO s a V aw . ii, 0 a w c . _ w 0 E 0 w -0 0 s ix l'4 ca 2 Mary Rhodes Pipeline Project Phase 2 Right Begin Design Complete arch 2010 Complete Environmental irivestigation Selection Route Subrrirt Engineering Report Begin i i O O r-I r-1 O O O O r-i r•-i N N N N cn cn cg i t uo to Q Q CO CI H cn a c a LI- o v g- 2 c 0 U co 0 c O co C C. v U v = cc ® CT 4-' — 0 c ft3 Q a) c }, E U c c }, QJ 0 E .D v a, w v, w February December curvtiri Arty c O CO 0- V CO 0- co 0 0 0 N • • Ten (10) local teaming partners i � ca U ID L- cn % — O O O cn 0_ 0 4— 4— -C > 0 - O >% O O bA bA +-) co — 4-) • V co — i • • 0 Q co co 0 0 4--' 4--' }, • - - o ca ca L ii- 2 2 • • • . -0 O i CO N C Q o • U O U • � •U •> >> W i 0 O c L_ —0 ti O U • > o 0 0 .> 4) " O = 'co O 0_ CL Ln U 0_ ca (/) 0) 0 • • • • Specialty Services performed outside City • Services performed in Corpus Christi 01 U 0 U • eammn •artner co V 0 40% ser ormed b A U C (D J LLJ 4 WWI 1" L ^ L = CO CU M CT CU L ^o ▪ co W Q • = ca U -. 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L ^, ^, - W c •_ > tv 73 c 0 . 2 a� a--) O c V O i - 'a O 'a O > 0 V V -c ilhliCO I..L cy _ c c • • • • • uJ U a V) D bi3 O c * 0 * 41-j CD to . - C O m a--) E 4--) 4-.1 c/1 — CO i P-13 U C ci_ (I) 0 E ° C O CU LU - C c E Q W CO • • • N N ✓ a U •4i, L • cu• tn a o s CxL i z O C.1 v E 3 ✓ ...,, --Es z 2 •� a • U ✓ z • a•.... o ,▪ � .1 if V N r N +a w • = Lr N 0- 00 0 U • a) lD lD -(J)- U a) CO Q OE • • • i • Pump Stations • • 3,912 MG per day a--+ .0 0 i C cn 0 .0 U - U '— �E 0 - o L c J -cm- o • • M N 1S CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: March 9, 2010 AGENDA ITEM: Ordinance authorizing the issuance of $8,000,000 "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010 "; providing the terms, conditions, and specifications for such bonds, including the approval of an application to the Texas Water Development Board; making provisions for the payment and security thereof on a parity with certain currently outstanding obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; authorizing the execution of a paying agent/registrar agreement and an escrow agreement; complying with the requirements of the depository trust company; enacting other provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. ISSUE: Loans for planning, design, and construction can be funded through the Water Infrastructure Fund (WIF) of the Texas Water Development Board. All loans through the WIF are offered at a subsidized interest rate which is 2 percent below the Texas Water Development Board's cost of funds and offer repayment periods at a maximum of 20 years. The Texas Water Development Board has already approved $8,000,000 of these funds for the City of Corpus and has sold bonds. The $8,000,000 is now available for the City of Christi, and so the City's next step is to sell Utility System Revenue Improvement Bonds. The Texas Water Development Board will then purchase the City's bonds at a subsidized interest rate. It is anticipated that the City should have the funds by the second week in April 2010. REQUIRED COUNCIL ACTION: Approval of the ordinance is requested. PREVIOUS COUNCIL ACTION: • July 28, 2009 — Approval of a resolution requesting financial assistance from the Texas Water Development Board in the amount of $8,000,000 for the planning, design, and permitting of a pipeline and related facilities between the Colorado River and the Mary Rhodes Pipeline pumping facility at Lake Texana. CONCLUSION AND RECOMMENDATION: City Staff recommends that the City Council approve the Ordinance authorizing the issuance of the above noted revenue bonds as presented. Constance P. Sanchez Interim Director of Financial Services Attachments: constancep @cctexas.com Background (361) 826 -3227 Timeline Draft Ordinance BACKGROUND INFORMATION Loans for planning, design, and construction can be funded through the Water Infrastructure Fund (WIF) of the Texas Water Development Board. All loans through the WIF are offered at a subsidized interest rate which is 2 percent below the Texas Water Development Board' s cost of funds. Repayment periods are a maximum of 20 years. Certain loans for development cost have an additional financial opportunity. In order to advance projects which have significant development lead times, a portion of the WIF is available specifically for planning, designing, permitting, and other costs associated with state or federal regulatory activities. Utilizing the WIF - Deferred, an applicant may defer all interest and principal payments for up to 10 years, or until the end of construction of the project, whichever is sooner. Interest is not accrued during the deferral period, and the loan is amortized over the final 10 years. In order to achieve the goal of having the project construction ready in two years and reduce the immediate impact on our Capital Improvements program or to our rates, it was critical that this application for WIF - Deferred funding be submitted. The application was submitted and approved by the Texas Water Development Board, and subsequently, at its December 15, 2009 Board meeting, the Texas Water Development Board approved by resolution the City of Corpus Christi's request for a loan in the amount of $8,000,000 from the Water Infrastructure Fund, deferred payment option, to finance development costs for a water supply project, and utilizing the pre - design funding option. Approval of this ordinance authorizing the issuance of $8,000,000 of Utility System Revenue Improvement Bonds is being requested so that the City of Corpus Christi will receive its funds to proceed with the planning, design, and permitting of a pipeline and related facilities between the Colorado River and the Mary Rhodes Pipeline pumping facility at Lake Texana. It is estimated that we will receive these funds by the second week in April 2010. City of Corpus Christi, Texas Utility System Revenue Bonds, Series 2010 February 26, 2010 Timetable * ** *REVISED * * ** Tuesday, January 5, 2010 ............. Working Group Conference Call Wednesday, January 6, 2010 ............. (1) Start preparation of Financing Documents (2) Start preparation of Financial Analysis and Debt Structuring Tuesday, February 2, 2010 ............. (1) Distribute Agenda Item to the City for Reimbursement Resolution (2) Distribute first drafts of Financing Documents to City and Financial Advisor for review and comment Wednesday, February 3, 2010 ............. (1) Submit Sufficiency of Funds letter to Augustine Tambe (FNI) (2) Submit final fee breakdown (FNI) Friday, February 5, 2010 ............. (1) Distribute Financing Documents to TWDB (Start of 30 day review process) Tuesday, February 9, 2010 ............. (1) Comments due on first drafts of Financing Documents (2) Financial Advisor distributes Debt Structure to Bond Counsel for inclusion in Financing Documents Wednesday, February 17, 2010 ............. Distribute Agenda Language to City for Bond Authorization Friday, March 5, 2010 ............. (1) TWDB comments on Financing Documents due (2) TWDB sets interest rate (End of 30 day review process) (3) Distribute final draft of Financing Documents to the Working'Group for review Tuesday, March 9, 2010 ............. Council Meeting (1) Approve Reimbursement Resolution (2) Approve Engineering Contract (3) Approve Bond Order (4) Bond Counsel submits Documents to Attorney Generals Office Thursday, March 25, 2010 ............. (1) Receive Attorney General Approval (2) Distribute Final Documents to TWDB for review Thursday, April 1, 2010 ............. TWDB approves Final Documents for Closing Friday; April 2, 2010 ............. Good Friday (Holiday) Wednesday, April 7, 2010 Pre- Closing (Subject to TWDB Consent) Thursday, April 8, 2010 ............. Closing (Subject to TWDB Consent) DRAFT 2/25/10 ORDINANCE AUTHORIZING THE ISSUANCE OF $8,000,000 "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE IMPROVEMENT BONDS, SERIES 2010"; PROVIDING THE TERMS, CONDITIONS, AND SPECIFICATIONS FOR SUCH BONDS, INCLUDING THE APPROVAL OF AN APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD; MAKING PROVISIONS FOR THE PAYMENT AND SECURITY THEREOF ON A PARITY WITH CERTAIN CURRENTLY OUTSTANDING OBLIGATIONS; STIPULATING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF ADDITIONAL REVENUE BONDS ON A PARITY THEREWITH; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND AN ESCROW AGREEMENT; COMPLYING WITH THE REQUIREMENTS OF THE DEPOSITORY TRUST COMPANY; ENACTING OTHER PROVISIONS INCIDENT AND RELATED TO THE SUBJECT AND PURPOSE OF THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE 85454572.4 SECTION 1: SECTION 2: SECTION 3: SECTION 4: SECTION 5: SECTION 6: SECTION 7: SECTION 8: SECTION 9: SECTION 10: SECTION 11: SECTION 12: SECTION 13: SECTION 14: SECTION 15: SECTION 16: SECTION 17: SECTION 18: SECTION 19: SECTION 20: SECTION 21: SECTION 22: SECTION 23: SECTION 24: SECTION 25: SECTION 26: SECTION 27: 85454572.4 TABLE OF CONTENTS Page BONDS AUTHORIZED 2 DATED DATE, DENOMINATION, AND STATED MATURITIES; REDEMPTION OPTION 3 INTEREST 4 CHARACTERISTICS OF THE BONDS 4 FORM OF BONDS 8 DEFINITIONS 9 PLEDGE 16 SYSTEM FUND 16 DEBT SERVICE FUND 16 RESERVE FUND 17 SUBORDINATED OBLIGATIONS FUNDS AND ACCOUNTS 18 CONSTRUCTION FUND 18 INVESTMENTS 18 FUNDS SECURED 19 FLOW OF FUNDS 19 DEFICIENCIES 20 PAYMENT OF BONDS 20 FINAL DEPOSITS; GOVERNMENT OBLIGATIONS 20 ISSUANCE OF ADDITIONAL PRIORITY BONDS 22 FURTHER REQUIREMENTS FOR ADDITIONAL PRIORITY BONDS 22 GENERAL COVENANTS 25 COVENANTS REGARDING TAX - EXEMPTION 30 TAXABLE OBLIGATIONS 33 AMENDMENT OF ORDINANCE 33 DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. 36 CONFIRMATION OF SALE 37 COMPLIANCE WITH PURCHASER'S RULES AND REGULATIONS 37 TABLE OF CONTENTS (continued) Page SECTION 28: APPROVAL AND REGISTRATION OF BONDS 39 SECTION 29: USE OF PROCEEDS. PROCEEDS FROM THE SALE OF THE BONDS SHALL BE APPLIED AS FOLLOWS: 39 SECTION 30: DEFAULT AND REMEDIES 39 SECTION 31: FURTHER PROCEEDINGS 40 SECTION 32: AUTHORIZATION OF ESCROW AGREEMENT 41 SECTION 33: APPLICATION TO TEXAS WATER DEVELOPMENT BOARD 41 SECTION 34: CONTINUING DISCLOSURE UNDERTAKING 41 SECTION 35: ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE PROJECT 43 MISCELLANEOUS PROVISIONS 44 Form of Bond Form of Paying Agent/Registrar Agreement DTC Letter of Representations Form of Escrow Agreement Description of Annual Financial Information SECTION 36: EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E 85454572.4 DRAFT 2/19/10 ORDINANCE AUTHORIZING THE ISSUANCE OF $8,000,000 "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE IMPROVEMENT BONDS, SERIES 2010 "; PROVIDING THE TERMS, CONDITIONS, AND SPECIFICATIONS FOR SUCH BONDS, INCLUDING THE APPROVAL OF AN APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD; MAKING PROVISIONS FOR THE PAYMENT AND SECURITY THEREOF ON A PARITY WITH CERTAIN CURRENTLY OUTSTANDING OBLIGATIONS; STIPULATING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF ADDITIONAL REVENUE BONDS ON A PARITY THEREWITH; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND AN ESCROW AGREEMENT; COMPLYING WITH THE REQUIREMENTS OF THE DEPOSITORY TRUST COMPANY; ENACTING OTHER PROVISIONS INCIDENT AND RELATED TO THE SUBJECT AND PURPOSE OF THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Corpus Christi, Texas (the "City" or the "Issuer "), a "home- rule" city operating under a home -rule charter adopted pursuant to Section 5 of Article XI of the Texas Constitution, with a population according to the latest federal decennial census of in excess of 50,000, has heretofore issued its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 1990 (the "Series 1990 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Bonds, Series 1994 (the "Series 1994 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Bonds, Series 1994 -A (the "Series 1994 -A Bonds "), its City of Corpus Christi, Texas Utility System Revenue Bonds, Series 1995 (the "Series 1995 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Bonds, Series 1995 -A (the "Series 1995 -A Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 1999 (the "Series 1999 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 1999 -A (the "Series 1999 -A Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2000 (the "Series 2000 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2000 -A (the "Series 2000 -A Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2002 (the "Series 2002 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2003 (the "Series 2003 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2004 (the "Series 2004 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005 (the "Series 2005 Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005A (the "Series 2005A Bonds "), its City of Corpus Christi, Texas Utility System Revenue Refunding and 85454572.4 Improvement Bonds, Series 2006 (the "Series 2006 Bonds "), and its City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2009 (the "Series 2009 Bonds "); and WHEREAS, the Series 1990 Bonds, the Series 1994 Bonds, the Series 1994 -A Bonds, the Series 1995 Bonds and the Series 1995 -A Bonds are no longer Outstanding (as hereinafter defined); and WHEREAS, the Series 1999 Bonds, the Series 1999 -A Bonds, the Series 2000 Bonds, the Series 2000 -A Bonds, the Series 2002 Bonds, the Series 2003 Bonds, the Series 2004 Bonds, the Series 2005 Bonds, the Series 2005A Bonds, the Series 2006 Bonds, and the Series 2009 Bonds are sometimes collectively referred to herein as the "Previously Issued Priority Bonds "; and WHEREAS, the City has established an interim financing program pursuant to which the City has authorized the issuance of commercial paper notes designated "City of Corpus Christi, Texas Utility System Commercial Paper Notes, Series B ", to be issued from time to time in an aggregate principal amount not to exceed $75,000,000 at any one time Outstanding (the "Series B Commercial Paper Notes "), under which there currently exists no Outstanding obligations; and WHEREAS, the City deems it appropriate and in its best interest to issue the hereinafter authorized revenue bonds for the primary purpose of acquiring, purchasing, constructing, improving, repairing, extending, equipping, and renovating the City's combined waterworks system, including storm sewer and drainage (which is a part of a larger utility system that also includes the City's wastewater disposal system and its gas system and is hereinafter described and defined more thoroughly as the "System "); and WHEREAS, in the ordinance authorizing the issuance of the Series 1990 Bonds (the "Base Ordinance "), the City reserved the right to issue revenue bonds on a parity with the Series 1990 Bonds; and WHEREAS, the revenue bonds hereinafter authorized are to be issued and delivered pursuant to the laws of the State of Texas, including specifically Chapter 1502, Texas Government Code, as amended (the "Act "), and the terms of the Base Ordinance and this Ordinance (as hereinafter defined), for the purposes set forth in this Ordinance; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: Bonds Authorized. In order to provide funds for the purposes of (i) acquiring, purchasing, constructing, improving, repairing, extending, equipping, and renovating the System as described in the preamble hereof, (ii) funding the increase in the Required Amount (defined herein) attributable to the issuance of the Bonds, and (iii) paying the costs of issuance relating thereto, the City Council (the "Governing Body ") of the City, acting pursuant to the laws of the State of Texas, particularly the Act, has determined that there shall be issued and there is hereby ordered to be issued a series of revenue bonds to be designated "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010 ", in the principal sum of EIGHT MILLION AND NO /100 DOLLARS ($8,000,000) (the "Bonds "). 854545724 -2- SECTION 2: Dated Date, Denomination, and Stated Maturities; Redemption Option. The Bonds shall be issued as fully registered obligations, without coupons, totaling $8,000,000 in aggregate principal amount and be dated March 1, 2010. A. Denominations, and Stated Maturities. The Bonds shall be issued in denominations of Five Thousand Dollars ($5,000) or any integral multiple (within a stated maturity) thereof (each, an "Authorized Denomination "), shall be lettered "R" and numbered consecutively from One (1) upward. The Bonds herein authorized to be issued shall bear interest on the unpaid principal amounts from the Interest Commencement Date or from the most recent interest payment date to which interest has been duly paid or provided and principal shall become due and payable on July 15 in each of the years and in amounts in accordance with the following schedule. Said interest shall be payable to the registered owner of any such Bond in the manner provided and on the dates stated in the FORM OF BOND attached to this Ordinance as Exhibit A. Stated Maturities 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 B. Redemption Provisions. Principal Amounts ($) Interest Rates ( %) (1) Optional Redemption. The City reserves the right to redeem the Bonds stated to mature on and after July 15, 2021, in whole or in part and in inverse order of Stated Maturity, on July 15, 2020, or on any date thereafter, in such order of stated maturity as the City shall determine and by lot or other customary method within a stated maturity at the redemption price of par plus accrued interest to the date of redemption. (2) Special Mandatory Redemption. In the event that the Purchaser (as hereinafter defined) at such time remains the sole holder of the Bonds and the final accounting delivered by the City to the Purchaser in the form and manner specified in Section 27.0 of this Ordinance evidences that the total cost of the project to be financed with Bond proceeds is less than the amount of Bond proceeds available for paying such costs, then the City shall, as soon as practicable (but in no event later than six months after the Purchaser's acceptance of the aforementioned accounting) redeem Bonds in the amount of such excess to the nearest multiple of the authorized denomination for the Bonds. Bonds redeemed pursuant to this provision shall be redeemable on any date, in inverse order of Stated Maturity, 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 85454572.4 -3- lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption. (3) Notice of Redemption. At least thirty (30) days prior to the date any such Bonds are to be redeemed, a notice of redemption, authorized by appropriate resolution passed by the Governing Body, shall be given in the manner set forth below. A written notice of such redemption shall be given to the registered owner of each Bond or a portion thereof being called for redemption by depositing such notice in the United States mail, first class postage prepaid, addressed to each such registered owner at his address shown on the Registration Books (as hereinafter defined) kept by the Paying Agent /Registrar. By the date fixed for any such redemption, due provision shall be made by the City with the Paying Agent /Registrar for the payment of the required redemption price for the Bonds or the portions thereof which are to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such written notice of redemption is given, and if due provision for such payment is made, all as provided above, the Bonds, or the portions thereof which are to be so redeemed, thereby automatically shall be redeemed prior to their scheduled maturities, shall not bear interest after the date fixed for their redemption, and shall not be regarded as being Outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of the Bonds or any portion thereof. If a portion of any Bonds shall be redeemed, a substitute Bond or Bonds having the same stated maturity date, bearing interest at the same interest rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in this Ordinance. SECTION 3: Interest. The Bonds shall bear interest on the unpaid principal amount thereof 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 January 15 and July 15 of each year (the "Interest Payment Date "), commencing 15, 20_, while the Bonds are Outstanding. Interest on each Bond issued and delivered to a Holder shall accrue from the latest Interest Payment Date that interest on such Bond (or the Bond which it substitutes) has been paid that precedes the registration date appearing on such Bond in the "Registration Certificate of Paying Agent/Registrar" (Section C of Exhibit A hereto), unless the registration date appearing thereon is an Interest Payment Date for which interest is being paid, in which case interest on such Bond shall accrue from the registration date appearing thereon and provided further that with respect to the initial payment of interest on a Bond, such interest shall accrue from the Interest Commencement Date. SECTION 4: Characteristics of the Bonds. A. Registration, Transfer, Conversion and Exchange; Authentication; Initial Bond. The City shall keep or cause to be kept at the designated trust office in Austin, Texas (the "Designated Trust Office ") of Wells Fargo Bank, National Association (the "Paying 85454572.4 -4- Agent/Registrar ") books or records for the registration of the transfer, conversion and exchange of the Bonds (the "Registration Books "), and the City hereby appoints the Paying Agent /Registrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers, conversions and exchanges under such reasonable regulations as the City and the Paying Agent /Registrar may prescribe; and the Paying Agent/Registrar shall make such registrations, transfers, conversions and exchanges as herein provided. The execution of a "Paying Agent/Registrar Agreement ", in substantially the form attached to this Ordinance as Exhibit B, is hereby authorized. The Paying Agent/Registrar shall obtain and record in the Registration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The City shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. The City shall pay the Paying Agent/Registrar's standard or customary fees and charges for making such registration, transfer, conversion, exchange and delivery of a substitute Bond or Bonds. Registration of assignments, transfers, conversions and exchanges of Bonds shall be made in the manner provided and with the effect stated in the FORM OF BOND. Each substitute Bond shall bear a letter and /or number to distinguish it from each other Bond. Each Bond may be exchanged for fully registered bonds in the manner set forth herein. Each Bond issued and delivered pursuant to this Ordinance, to the extent of the unredeemed principal amount thereof, may, upon surrender thereof at the Designated Trust Office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, at the option of the registered owner or such assignee or assignees, as appropriate, be exchanged for fully registered bonds, without interest coupons, in the form prescribed in the FORM OF BOND, in any Authorized Denomination (subject to the requirement hereinafter stated that each substitute bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unredeemed principal amount of any Bond or Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If a portion of any Bond shall be redeemed prior to its scheduled maturity as provided herein, a substitute bond or bonds having the same maturity date, bearing interest at the same rate, in any Authorized Denomination at the request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender of such partially redeemed Bond for cancellation. If any Bond or portion thereof is assigned and transferred, each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is being exchanged. Each substitute Bond shall bear a letter and /or number to distinguish it from each other Bond. The Paying Agent/Registrar shall exchange or replace Bonds as provided herein, and each fully registered substitute Bond or Bonds delivered in exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Bonds for all purposes of this Ordinance, and may again be exchanged or replaced. It is specifically provided, however, that any Bond delivered in exchange for or 85454572.4 -5- replacement of another Bond prior to the first scheduled Interest Payment Date on the Bonds shall be dated the same date as such Bond, but each substitute Bond so delivered on or after such first scheduled Interest Payment Date shall be dated as of the Interest Payment Date preceding the date on which such substitute Bond is delivered, unless such substitute Bond is delivered on an Interest Payment Date, in which case it shall be dated as of such date of delivery; provided further, however, that if at the time of delivery of any substitute Bond the interest on the Bond for which it is being exchanged has not been paid, then such substitute Bond shall be dated as of the date to which such interest has been paid in full. On each substitute Bond issued in exchange for or replacement of any Bond or Bonds issued under this Ordinance there shall be printed thereon a Paying Agent/Registrar's Authentication Certificate, in the form set forth in the FORM OF BOND (the "Authentication Certificate "). An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the Authentication Certificate, and no such Bond shall be deemed to be issued or Outstanding unless the Authentication Certificate is so ex- ecuted. The Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered for conversion and exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the Governing Body or any other body or person so as to accomplish the foregoing conversion and exchange of any Bond or portion thereof, and the Paying Agent/Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein. Pursuant to Chapter 1206, as amended, Texas Government Code, the duty of conversion and exchange of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of the Authentication Certificate, the converted and exchanged Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Bonds which initially were issued and delivered pursuant to this Ordinance, approved by the Attorney General (as hereinafter defined), and registered by the Comptroller of Public Accounts (as hereinafter defined). The Bonds shall be issued initially either (i) as a fully registered Bond in the total aggregate principal amount of $8,000,000 with principal installments to become due and payable as provided in Subsection 2.A, and numbered T -1, or (ii) as one (1) fully registered Bond for each year of stated maturity in the applicable principal amount, interest rate, and denomination and to be numbered consecutively from T -1 and upward (the "Initial Bonds ") and, in either case, the Initial Bonds shall be registered in the name of the Purchaser or its designee. The Initial Bonds shall be the Bonds submitted to the Attorney General for approval and certified and registered by the Comptroller of Public Accounts. At any time after the delivery of the Initial Bonds to the Purchaser, the Paying Agent /Registrar, upon written instructions from the Purchaser, or its designee, shall cancel the Initial Bonds and exchange therefor definitive Bonds of authorized denominations, stated maturities, principal amounts, and bearing applicable interest rates for transfer and delivery to the registered owners named and at the addresses identified therefor, all in accordance with and pursuant to such written instructions from the Purchaser, or its designee, and such other information and documentation as the Paying Agent/Registrar may reasonably require. B. Payment of Bonds and Interest. The City hereby further appoints the Paying Agent/Registrar to act as the paying agent for paying the principal of, premium, if any, and interest on the Bonds, all as provided in this Ordinance. The Paying Agent/Registrar shall keep 85454572.4 -6- proper records of all payments made by the City and the Paying Agent/Registrar with respect to the Bonds. C. In General. The Bonds (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed, sealed, executed and authenticated, (vii) the principal of and interest on which shall be payable, and (viii) shall be administered and the Paying Agent /Registrar and the City shall have certain duties and responsibilities with respect to the Bonds, all as provided, and in the manner and to the effect as required or indicated, in the FORM OF BOND. The Initial Bonds are not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for any Bond or Bonds issued under this Ordinance the Paying Agent/Registrar shall execute the Authentication Certificate. D. Substitute Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution, or other entity duly qualified and legally authorized to serve as and perform the duties and services of Paying Agent/Registrar. Upon any change (which shall be at the sole discretion of the City) in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Bonds by United States mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. In addition, the previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the City. By accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. E. Book Entry Only System. The Bonds issued in exchange for the Initial Bonds shall be initially issued in the form of a separate single fully registered Bond for each Stated Maturity of the Bonds. Upon initial issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( "DTC "), and except as provided in Subsection F hereof, all of the Outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC. With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the Issuer and the Paying Agent/Registrar shall have no responsibility or obligation to any securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created ( "DTC Participant ") to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the Issuer 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 DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a registered owner of Bonds, as shown on the Registration Books, of any notice with respect to the 85454572.4 -7- Bonds, or (iii) the payment to any DTC Participant or any other person, other than a registered owner of Bonds, as shown in the Registration Books of any amount with respect to principal of or interest on the Bonds. Notwithstanding any other provision of this Ordinance to the contrary, the Issuer and the Paying Agent/Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Registration Books as the absolute owner of such Bond for the purpose of payment of principal, premium, if any, and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Paying Agent/Registrar shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the order of the registered owners, as shown in the Registration Books as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner, as shown in the Registration Books, shall receive a Bond evidencing the obligation of the Issuer 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 being mailed to the registered owner at the close of business on the Record Date (as defined in the FORM OF BOND), the words "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. F. Successor Securities Depository. In the event that the Issuer determines that DTC is incapable of discharging its responsibilities described herein and in the representation letter of the Issuer to DTC in the form attached hereto as Exhibit C and made a part hereof for all purposes (the "Representation Letter ") or that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the Issuer shall (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC Participants of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC accounts. In such event, the Bonds shall no longer be restricted to being registered in the Registration Books in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names registered owners transferring or exchanging Bonds shall designate, in accordance with the provisions of this Ordinance. G. DTC Letter of Representations. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond 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 Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. SECTION 5: Form of Bonds. The form of all Bonds, including the form of the Authentication Certificate, the form of Assignment, and the form of the Comptroller's Registration Certificate (to be attached only to the Initial Bonds) shall be, respectively, 85454572.4 -8- substantially in the form attached hereto as Exhibit A, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance. SECTION 6: Definitions. For all purposes of this Ordinance, except as otherwise expressly provided or unless the context otherwise require, the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Sections 22 and 34 of this Ordinance have the meanings assigned to them in such respective Sections. (1) The term "Account" shall mean any account created, established and maintained under the terms of any ordinance authorizing the issuance of Priority Bonds. (2) The term "Accountant" shall mean a nationally recognized independent certified public accountant, or an independent firm of certified public accountants. (3) The term "Additional Priority Bonds" shall mean the additional revenue bonds which the City reserves the right to issue in the future on a parity with the Previously Issued Priority Bonds and the Bonds, as provided in the Base Ordinance and this Ordinance. (4) The term "Amortization Installment" shall mean the amount of money which is required to be deposited into the Mandatory Redemption Account for retirement of Term Bonds (whether at maturity or by mandatory redemption and including redemption premium, if any). (5) The term "Attorney General" shall mean the Office of the Attorney General of the State of Texas. (6) The term "Authorized Denomination" shall have the meaning given such term in Section 2 of this Ordinance. (7) The term "Average Annual Principal and Interest Requirements" shall mean that amount equal to the average annual principal and interest requirements (including Amortization Installments) of all Priority Bonds Outstanding. With respect to Additional Priority Bonds that bear interest at a rate which is not established at the time of issuance at a single numerical rate for each maturity of such series, Average Annual Principal and Interest Requirements shall be calculated by (i) assuming that the interest rate for every 12 -month period on such bonds is equal to 9.20% or (ii) using the highest numerical rate borne over the preceding 24 month period by such bonds, whichever is greater; provided, however, that if such bonds have not borne interest at a variable rate for such 24 month period, such rate shall be assumed to be 9.20% until such time as bonds have been Outstanding for a 24 month period. In making such determinations, it shall be assumed that the principal of such bonds is amortized such that annual debt service is substantially level over the remaining stated life of such bonds. (8) The term "Base Ordinance" shall mean the ordinance authorizing the issuance of the Series 1990 Bonds. 85454572.4 -9- (9) The term "Bonds" shall have the meaning given such term in Section 1 of this Ordinance. (10) The term "Capital Additions" shall mean a reservoir or other water storage facilities, a wastewater treatment plant or an interest therein, a gas distribution system or an interest therein and associated transmission facilities with respect to each and any combination thereof, which shall become a part of the System. (11) The term "Capital Improvements" shall mean any capital extensions, improvements and betterments to the System other than Capital Additions. (12) The term "Capitalized Interest Account" shall mean the Account by that name which may be created within the Debt Service Fund. (13) The terms "City" and "Issuer" shall have the meaning given such terms in the preamble of this Ordinance. (14) The term "Closing Date" shall mean the date of physical delivery of the Initial Bonds in exchange for the payment in full by the Purchaser. (15) The term "Comptroller of Public Accounts" shall mean the Office of the Comptroller of Public Accounts of the State of Texas. (16) The term "Construction Fund" shall mean the fund so designated in Section 12 of this Ordinance. (17) The term "Credit Facility" shall mean a policy of municipal bond insurance, a debt service reserve fund policy or surety bond or a letter or line of credit issued by a Credit Facility Provider in support of any Priority Bonds or Subordinated Obligations. (18) The term "Credit Facility Provider" shall mean (i) with . respect to any Credit Facility consisting of a policy of municipal bond insurance or a surety bond, an issuer of policies of insurance insuring the timely payment of debt service on governmental obligations such as the Priority Bonds, provided that a Rating Agency having an outstanding rating on the Priority Bonds would rate the Priority Bonds fully insured by a standard policy issued by the issuer in its highest generic rating category for such obligations; and (ii) with respect to any Credit Facility consisting of a letter or line of credit, any financial institution, provided that a Rating Agency having an outstanding rating on the Priority Bonds would rate the Priority Bonds in its two highest generic rating categories for such obligations if the letter or line of credit proposed to be issued by such financial institution secured the timely payment of the entire principal amount of the series of Priority Bonds and the interest thereon. (19) The term "Debt Service Fund" shall have the meaning given such term in Section 9 of this Ordinance. 85454572.4 -10- (20) The term "DTC" shall have the meaning given such term in Section 4 to this Ordinance. (21) The term "Eligible Investments" shall mean those investments in which the City is authorized by law, including, but not limited to, the Public Funds Investment Act of 1987 (Chapter 2256, as amended, Texas Government Code), to purchase, sell and invest its funds and funds under its control, and with respect to the investment of proceeds of any Priority Bonds, guaranteed investment contracts fully collateralized by Government Obligations. (22) The term "Engineer of Record" shall mean the independent engineer or firm at the time employed by the City to perform and carry out the duties imposed on such engineer or firm by this Ordinance and having a favorable reputation nationally for skill and experience in the engineering of water, sanitary sewer and /or gas systems of comparable size and character as those forming parts of the System. (23) The term "Fund" shall mean any fund created, established and maintained under the terms of any ordinance authorizing the issuance of Priority Bonds. (24) The term "Government Obligations" shall mean (i) with respect to any Previously Issued Priority Bonds except the Series 2009 Bonds, direct obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America and (ii) with respect to the Series 2009 Bonds, the Bonds, and any Additional Priority Bonds hereafter issued by the City, (1) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America, or (2) noncallable obligations of an agency or instrumentality of the 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 (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, 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; provided, however, that in the event the term "Government Obligations" shall be used in such a manner other than with respect to the defeasance of Priority Bonds pursuant to Section 18 of this Ordinance, its meaning shall be consistent with that specified in clause (i) above until such time as there are no longer Outstanding any Previously Issued Priority Bonds (except the Series 2009 Bonds, which are excluded from the definition of Previously Issued Priority Bonds for purposes of this clause) and, thereafter, it shall have the meaning ascribed thereto in clause (ii). (25) The term "Gross Revenues" shall mean all revenues, income, and receipts derived or received by the City from the operation and ownership of the System, including the interest income from the investment or deposit of money in any Fund created or confirmed by this Ordinance or maintained by the City in connection with the 85454572.4 System, other than those amounts subject to payment to the United States of America as rebate pursuant to section 148 of the Code. (26) The term "Interest Commencement Date" shall mean 15, 20 (27) The term "Mandatory Redemption Account" shall mean the Account by that name within the Debt Service Fund and established, if at all, by an ordinance authorizing the issuance of Priority Bonds. (28) The terms "Net Revenues of the System" and "Net Revenues" shall mean all Gross Revenues less Operating Expenses. (29) The term "Operating Expenses" shall mean the expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs, and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City, reasonably and fairly exercised by the passage of appropriate ordinances, are necessary to render adequate service, or such as might be necessary to meet some physical accident or condition which would otherwise impair any Priority Bonds. Operating Expenses shall include the purchase of water, sewer and gas services as received from other entities and the expenses related thereto, and, to the extent permitted by law, Operating Expenses may include payments made on or in respect of obtaining and maintaining any Credit Facility. Depreciation, and payments from the System Fund to other funds established in this Ordinance, shall never be considered as expenses of operation and maintenance. (30) The term "Outstanding" shall mean, as of the date of determination, all Priority Bonds theretofore issued and delivered except: (a) those Priority Bonds theretofore canceled by the respective paying agents for such Priority Bonds or delivered to such paying agents for cancellation; (b) those Priority Bonds for which payment has been duly provided by the City by the irrevocable deposit with the respective paying agents for such Priority Bonds of money in the amount necessary to fully pay principal of, premium, if any, and interest thereon to maturity or redemption, if any, as the case may be, provided that, if such Priority Bonds are to be redeemed, notice of redemption thereof shall have been duly given pursuant to the ordinance authorizing the issuance of such Priority Bonds, irrevocably provided to be given to the satisfaction of such paying agents, or waived; (c) those Priority Bonds that have been mutilated, destroyed, lost, or stolen and for which replacement bonds have been registered and delivered in lieu thereof; and (d) those Priority Bonds for which the payment of principal thereof, premium, if any, and interest thereon to Stated Maturity re redemption has been 85454572.4 -12- duly provided for by the City by the deposit in trust of money or Government Obligations, or both. (31) The term "Paying Agent/Registrar" shall mean the financial institution specified in Section 4.A of this Ordinance, or its herein - permitted successors and assigns. (32) The term "Pledged Revenues" shall mean (a) the Net Revenues, plus (b) any additional revenues, income, receipts, or other resources, including, without limitation, any grants, donations, or income received or to be received from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which hereafter are pledged to the payment of the Priority Bonds. (33) The term "Previously Issued Priority Bonds" shall have the meaning given said term in the preamble to this Ordinance. (34) The term "Priority Bonds" shall mean the Previously Issued Priority Bonds, the Bonds, and any Additional Priority Bonds. (35) The term "Prudent Utility Practice" shall mean any of the practices, methods and acts, in the exercise of reasonable judgment, in the light of the facts, including but not limited to the practices, methods and acts engaged in or approved by a significant portion of the public utility industry prior thereto, known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. It is recognized that Prudent Utility Practice is not intended to be limited to the optimum practice, method or act at the exclusion of all others, but rather is a spectrum of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. In the case of any facility included in the System which is owned in common with one or more other entities, the term "Prudent Utility Practice ", as applied to such facility, shall have the meaning set forth in the agreement governing the operation of such facility. (36) The term "Purchaser" shall have the meaning given such term in Section 26 of this Ordinance. (37) The term "Rating Agency" shall mean any nationally recognized securities rating agency which has assigned a rating to the Priority Bonds. (38) The term "Required Amount" shall have the meaning given such term in Section 10 of this Ordinance. (39) The term "Reserve Fund" shall have the meaning given such term in Section 10 of this Ordinance. 85454572.4 -13- (40) The term "Reserve Fund Obligations" shall mean cash, Eligible Investments, any Credit Facility, or any combination of the foregoing. (41) The term "Series 1990 Bonds" shall mean the $64,660,000 City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 1990, authorized by the ordinance adopted by the City on November 15, 1990; the term "Series 1999 Bonds" shall mean the $47,740,000 City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds Series 1999, authorized by the ordinance adopted by the City on May 11, 1999; the term "Series 1999 -A Bonds" shall mean the $15,750,000 City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 1999 -A, authorized by the ordinance adopted by the City on April 20, 1999; the term "Series 2000 Bonds" shall mean the $34,740,000 City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2000, authorized by the ordinance adopted by the City on May 11, 1999 (as amended by ordinance adopted on June 15, 1999); the term "Series 2000 -A Bonds" shall mean the $42,520,000 City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2000 -A, authorized by the ordinance adopted by the City on September 19, 2000; the term "Series 2002 Bonds" shall mean the $92,330,000 City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2002, authorized by the ordinance adopted by the City on August 20, 2002; the term "Series 2003 Bonds" shall mean the $28,870,000 City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2003, authorized by the ordinance adopted by the City on March 25, 2003; the term "Series 2004 Bonds" shall mean the $50,000,000 City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2004, authorized by the ordinance adopted by the City on July 13, 2004; the term "Series 2005 Bonds" shall mean the $70,390,000 City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005, authorized by the ordinance adopted by the City on December 21, 2004; the term "Series 2005A Bonds" shall mean the $68,325,000 City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005A, authorized by the ordinance adopted by the City on August 30, 2005; the term "Series 2006 Bonds" shall mean the $84,415,000 City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2006, authorized by the ordinance adopted by the City on September 26, 2006; and the term "Series 2009 Bonds" shall mean the $96,490,000 City of Corpus Christ, Texas Utility System Revenue Improvement Bonds, Series 2009, authorized by the ordinance adopted by the City on February 24, 2009. (42) The term "Subordinated Obligations" shall mean any bonds, notes, or other obligations issued pursuant to law payable in whole or in part from the Pledged Revenues but subordinate to the Priority Bonds, which includes the Series B Commercial Paper Notes. (43) The term "System" shall mean and include, for so long as the Previously Issued Priority Bonds remain Outstanding or until consents from the Holders thereof permitting an amendment to the applicable authorizing ordinances providing for an earlier date of effectiveness are secured, the City's existing combined waterworks system, wastewater disposal system and gas system, together with all future extensions, improvements, enlargements, and additions thereto, including, to the extent permitted by 85454572.4 -14- law, storm sewer and drainage within the waterworks system, and all replacements thereof; thereafter, the term "System" shall mean and include the City's existing combined waterworks system, wastewater disposal system and gas system, together with all future extensions, improvements, enlargements, and additions thereto, including, to the extent permitted by law (and to be added at the sole discretion of the City), storm sewer and drainage within the waterworks system, solid waste disposal system, additional utility (including electricity), telecommunications, technology, and any other similar enterprise services, and all replacements, additions, and improvements to any of the foregoing, within or without the City limits; provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall not include any waterworks, wastewater or gas facilities which are declared by the City not to be a part of the System and which are hereafter acquired or constructed by the City with the proceeds from the issuance of "Special Facilities Bonds ", which are hereby defined as being special revenue obligations of the City which are not secured by or payable from the Pledged Revenues, but which are secured by and payable solely from special contract revenues, or payments received from the City or any other legal entity, or any combination thereof, in connection with such facilities; and such revenues or payments shall not be considered as or constitute Gross Revenues of the System, unless and to the extent otherwise provided in the ordinance or ordinances authorizing the issuance of such "Special Facilities Bonds ". (44) The term "System Fund" shall have the meaning given such term in Section 8 of this Ordinance. (45) The term "Term Bonds" shall have the meaning given such .term in Section 2 of this Ordinance. (46) The term "Value of Investment Securities" and words of like import shall mean the amortized value thereof; provided, however, that all United States of America, United States Treasury Obligations - -State and Local Government Series shall be valued at par and those obligations which are redeemable at the option of the holder shall be valued at the price at which such obligations are then redeemable. The computations made under this paragraph shall include accrued interest on the investment securities paid as a part of the purchase price thereof and not collected. For the purposes of this definition, "amortized value ", when used with respect to a security purchased at par, means the purchase price of such security. (47) The term "Year" shall mean the regular fiscal year used by the City in connection with the operation of the System, which may be any twelve consecutive months period established by the City, currently being the period of time beginning on August 1 and ending on July 31. SECTION 7: Pledge. A. Pledged Revenues. The Priority Bonds are and shall be secured by and payable from a first lien on and pledge of the Pledged Revenues including such revenues within the System Fund and the Funds hereinafter created in this Ordinance; and the Pledged Revenues are further 85454572.4 -15- pledged to the establishment and maintenance of the Debt Service Fund and the Reserve Fund as hereinafter provided. The Priority Bonds are and will be secured by and payable only from the Pledged Revenues, and are not secured by or payable from a mortgage or deed of trust on any properties, whether real, personal, or mixed, constituting the System. B. Security Interest. Chapter 1208, as amended, Texas Government Code, applies to the issuance of the Bonds and the pledge of the Pledged Revenues granted by the City under Subsection A of this Section, and such pledge is therefore valid, effective, and perfected. If Texas law is amended at any time while the Bonds are Outstanding and unpaid such that the pledge of the Pledged Revenues granted by the City is to be subject to the filing requirements of Chapter 9, as amended, Texas Business & Commerce Code, then in order to preserve to the registered owners of the Bonds the perfection of the security interest in said pledge, the City agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, as amended, Texas Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. SECTION 8: System Fund. There has heretofore been created and established and there shall be maintained on the books of the City, and accounted for separate and apart from all other funds of the City, a special fund entitled the "City of Corpus Christi Utility System Fund" (the "System Fund "). All Gross Revenues shall be credited to the System Fund immediately upon receipt. All Operating Expenses shall be paid from such Gross Revenues credited to the System Fund as a first charge against same. SECTION 9: Debt Service Fund. A. Debt Service Fund Established. For the sole purpose of paying the principal amount of, premium, if any, Amortization Installments, if any, and interest on all Priority Bonds, there has heretofore been created and established and there shall be maintained on the books of the City a separate fund entitled the "City of Corpus Christi Utility System Revenue Bonds Debt Service Fund" (the "Debt Service Fund "). Money in the Debt Service Fund shall be deposited and maintained in an official depository bank of the City. B. Capitalized Interest Account. Within the Debt Service Fund there may hereafter be established a Capitalized Interest Account. The proceeds of Priority Bonds representing capitalized interest may be deposited into the Capitalized Interest Account. On or before the day next preceding any interest payment date of Priority Bonds or other obligations for which any interest has been capitalized, the City shall use the money in the Capitalized Interest Account to pay such interest on such Priority Bonds or other obligations to the extent of the amounts therein representing such capitalized interest. C. Mandatory Redemption Account. Within the Debt Service Fund there has heretofore been established the Mandatory Redemption Account. Amortization Installments shall be deposited to the credit of the Mandatory Redemption Account and be used to retire the principal amount of Term Bonds in the manner described in any ordinance, including this Ordinance, authorizing the issuance of Term Bonds. 85454572.4 -16- D. Surplus Proceeds. Effective at such time as the Previously Issued Priority Bonds are no longer Outstanding, the City may transfer excess amounts held in the Debt Service Fund to any fund or funds established for the payment of or security for the Priority Bonds (including any escrow established for the final payment of any such obligations pursuant to Chapter 1207, as amended, Texas Government Code) or use such excess amount for any lawful purpose now or hereafter provided by law; provided, however, to the extent that such excess amount represents bond proceeds, then such amount must remain in the Debt Service Fund. SECTION 10: Reserve Fund. A. Reserve Fund Established. There has heretofore been created and established and there shall be maintained on the books of the City a separate fund entitled the "City of Corpus Christi Utility System Revenue Bonds Reserve Fund" (the "Reserve Fund "). There shall be deposited into the Reserve Fund any Reserve Fund Obligations so designated by the City. Reserve Fund Obligations in the Reserve Fund shall be deposited and maintained in an official depository bank of the City. Reserve Fund Obligations in the Reserve Fund shall be used solely for the purpose of retiring the last of any Priority Bonds as they become due or paying principal of and interest on any Priority Bonds when and to the extent the amounts in the Debt Service Fund are insufficient for such purpose. The Reserve Fund shall be maintained in an amount equal to the Average Annual Principal and Interest Requirements of the Outstanding Priority Bonds (the "Required Amount "). The City may, at its option, withdraw and transfer to the System Fund, all surplus in the Reserve Fund over the Required Amount. B. Credit Facility. The City may replace or substitute a Credit Facility for cash or Eligible Investments on deposit in the Reserve Fund or in substitution for or replacement of any existing Credit Facility. Upon such replacement or substitution, cash or Eligible Investments on deposit in the Reserve Fund which, taken together with the face amount of any existing Credit Facilities, are in excess of the Required Amount may be withdrawn by the City, at its option, and transferred to the System Fund; provided, however, that the face amount of any Credit Facility may be reduced at the option of the City in lieu of such transfer. C. Withdrawals. If the City is required to make a withdrawal from the Reserve Fund for any of the purposes described in this Section, the City shall promptly notify any applicable Credit Facility Provider of the necessity for a withdrawal from the Reserve Fund for any such purposes, and shall make such withdrawal FIRST from available money or Eligible Investments then on deposit in the Reserve Fund, and NEXT from a drawing under any Credit Facility to the extent of such deficiency. D. Deficiencies. In the event of a deficiency in the Reserve Fund, or in the event that on the date of termination or expiration of any Credit Facility there is not on deposit in the Reserve Fund sufficient Reserve Fund Obligations, all in an aggregate amount at least equal to the Required Amount, then the City shall satisfy the Required Amount by depositing Reserve Fund Obligations into the Reserve Fund in monthly installments of not less than 1/60 of the Required Amount made on or before the 10th day of each month following such termination or expiration. E. Redemption; Defeasance. In the event of the redemption or defeasance of any Priority Bonds, any Reserve Fund Obligations on deposit in the Reserve Fund in excess of the 85454572.4 -17- Required Amount may be withdrawn and transferred, at the option of the City, to the System Fund, as a result of (i) the redemption of any Priority Bonds, or (ii) funds for the payment of any Priority Bonds having been deposited irrevocably with the paying agent or place of payment therefor in the manner described in any ordinance authorizing the issuance of Priority Bonds, the result of such deposit being that such Priority Bonds no longer are deemed to be Outstanding under the terms of any such ordinance. F. Reimbursement of Credit Facility Provider. In the event there is a draw upon a Credit Facility, the City shall reimburse the Credit Facility Provider for such draw, in accordance with the terms of any agreement pursuant to which the Credit Facility is issued, from Pledged Revenues; provided, however, such reimbursement from Pledged Revenues shall be subordinate and junior in right of payment to the payment of principal of and premium, if any, and interest on the Priority Bonds. G. Additional Priority Bonds. Upon the issuance of Additional Priority Bonds the money in the Reserve Fund shall be increased to the newly - established Required Amount in accordance with the provisions of Section 19.B of this Ordinance. SECTION 11: Subordinated Obligations Funds and Accounts. The City hereafter may create, establish and maintain on the books of the City separate funds and accounts from which money can be withdrawn to pay the principal of and interest on Subordinated Obligations which hereafter may be issued. SECTION 12: Construction Fund. The City hereby creates and establishes and shall maintain on the books of the City a separate fund to be entitled the "City of Corpus Christi, Texas Utility System Revenue Bonds Water Infrastructure Fund Program Construction Fund" (the "Construction Fund ") for use by the City in the manner specified in Section 27.B hereof. There shall be deposited to the Construction Fund those proceeds from the sale of the Bonds specified in Section 29 of this Ordinance. SECTION 13: Investments. Money in any Fund established pursuant to this Ordinance may, at the option of the City, be placed or invested in Eligible Investments. Money in the Reserve Fund shall not be invested in securities with an average aggregate weighted maturity of greater than seven years. If money in a Fund herein established are permitted to be invested, the value of any such Fund shall be established by adding the money therein to the Value of Investment Securities. The value of each such Fund shall be established annually during the last month of each Year, and in addition thereto and with respect to the Reserve Fund, value shall be established within thirty days prior to the issuance of Priority Bonds and at the time or times withdrawals are made therefrom. Such investments shall be sold promptly when necessary to prevent any default in connection with the Priority Bonds. Earnings derived from the investment of money on deposit in the various Funds and Accounts created hereunder shall be credited to the Fund or Account from which money used to acquire such investment shall have come. SECTION 14: Funds Secured. Money in the System Fund and all Funds created by this Ordinance, to the extent not invested, shall be secured in the manner prescribed by law for securing funds of the City. 85454572.4 -18- SECTION 15: Flow Of Funds. All money in the System Fund not required for paying Operating Expenses during each month shall be applied by the City, on or before the 10th day of the following month, commencing during the months and in the order of priority with respect to the Funds and Accounts that such applications are hereinafter set forth in this Section. A. Debt Service Fund. To the credit of the Debt Service Fund, in the following order of priority, to -wit: (1) such amounts, deposited in approximately equal monthly installments, commencing during the month in which the Priority Bonds are delivered, or the month thereafter if delivery is made after the 10th day thereof, as will be sufficient, together with other amounts, if any, in the Debt Service Fund available for such purpose (including specifically money on deposit in the Capitalized Interest Account, if any, dedicated thereto), to pay the interest scheduled to come due on Priority Bonds on the next succeeding interest payment date; (2) such amounts, deposited in approximately equal monthly installments, commencing during the month which shall be the later to occur of (i) the twelfth month before the first maturity date of Priority Bonds or (ii) the month in which Priority Bonds are delivered, or the month thereafter if delivery is made after the 10th day thereof, as will be sufficient, together with other amounts, if any, in the Debt Service Fund available for such purpose, to pay the principal scheduled to mature on Priority Bonds on the next succeeding principal payment date; and (3) Amortization Installments, in such amounts and on such dates as set forth in any ordinance authorizing a series of Priority Bonds which contain Term Bonds within such series, to pay scheduled principal amounts of Priority Bonds which constitute Term Bonds to be redeemed in accordance with the terms of said ordinance. B. Reserve Fund. To the credit of the Reserve Fund, such amounts, deposited in approximately equal monthly installments, commencing during the month in which the Priority Bonds are delivered, or the month thereafter if delivery is made after the 10th day thereof, equal to not less than 1/60 of the Required Amount, until such time as such amounts together with other amounts, if any, in the Reserve Fund, equal the Required Amount. When and so long as the Reserve Fund Obligations in the Reserve Fund are not less than the Required Amount, no deposits need be made to the credit of the Reserve Fund. When and if the Reserve Fund at any time contains less than the Required Amount due to any cause or condition other than the issuance of Additional Priority Bonds then, subject and subordinate to making the required deposits to the credit of the Debt Service Fund, commencing with the month during which such deficiency occurs, such deficiency shall be made up from the next available Pledged Revenues or from any other sources available for such purpose. Reimbursements to a Credit Facility Provider made in accordance with the terms of Subsection 10.F of this Ordinance shall constitute the making up of a deficiency to the extent that such reimbursements result in the reinstatement, in whole or in part, as the case may be, of the amount of the Credit Facility. If the Reserve Fund contains less than the Required Amount due to the issuance of Additional Priority Bonds, deposits shall be made to the Reserve Fund commencing during the month and in the amounts required by Subsection 19.B of this Ordinance, unless a Credit Facility is deposited in the 85454572.4 -19- Reserve Fund in an amount necessary to cause the sum of money and the value of Investment Securities and any other Credit Facilities in the Reserve Fund to equal the Required Amount. C. Surplus. The balance of any money remaining in the System Fund following such transfers may be used by the City for payment of other obligations of the System, including, but not limited to, Subordinated Obligations, and for any other lawful purpose; provided, however, that transfers made for purposes other than for payment of obligations of the System shall be made only at the end of the Year. SECTION 16: Deficiencies. If on any occasion there shall not be sufficient Pledged Revenues to make the deposits and other applications of money required by Section 15 with respect to the various Funds as provided therein, any such deficiencies shall be made up (in the order that each such Fund is provided for in Section 15) as soon as possible from the next available Pledged Revenues, or from any other sources available for such purpose. The foregoing notwithstanding, however, if any deficiency in the Reserve Fund occurs as a result of withdrawals therefrom or decreases in the market value of Eligible Investments on deposit therein, such deficiency will be made up from the next available Pledged Revenues within twelve months from the date of such deficiency is determined, with such deposits to the Reserve Fund to be made in not more than twelve substantially equal monthly payments. SECTION 17: Payment of Bonds. On or before the first scheduled Interest Payment Date, and on or before each interest payment date and principal payment date thereafter while any of the Priority Bonds are Outstanding and unpaid, the City shall make available to the paying agent therefor, out of the Debt Service Fund (and the other Funds, if necessary, in the order of priority set forth herein) money sufficient to pay such interest on and such principal amount of the Priority Bonds, as shall become due and mature on such dates, respectively, at maturity or by redemption prior to maturity. The bond registrar for each series of Priority Bonds shall destroy all paid Priority Bonds and furnish the City with an appropriate certificate of cancellation or destruction. SECTION 18: Final Deposits; Government Obligations. A. Defeasance. Any Priority Bond shall be deemed to be paid, retired and no longer Outstanding within the meaning of this Ordinance when payment of the principal amount of, redemption premium, if any, on such Priority Bond, plus interest thereon to the due date thereof (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made in accordance with the terms thereof or (ii) shall have been provided for by irrevocably depositing with, or making available to, a paying agent (or escrow agent) therefor, in trust and irrevocably set aside exclusively for such payment, in accordance with the terms and conditions of an agreement between the City and said paying agent (or escrow agent), (1) money sufficient to make such payment or (2) Government Obligations, certified by an independent public accounting firm of national reputation, to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation, and expenses of such paying agent pertaining to the Priority Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for (and irrevocable instructions shall have been given by the City to the paying agent of such bonds to give notice of such redemption in the 85454572.4 -20- manner required by the ordinance or ordinances authorizing the issuance of such bonds) to the satisfaction of such paying agent. Such paying agent shall give notice to each registered owner of any Priority Bond that such deposit as described above has been made, in the same manner as described in Section 2.B of this Ordinance. In addition, in connection with a defeasance, such paying agent shall give notice of redemption, if necessary, to the registered owners of any Priority Bonds in the manner described in such Priority Bonds and as directed in the redemption instructions delivered by the City to such paying agent. At such time as a Priority Bond shall be deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or entitled to the benefit of this Ordinance or a lien on and pledge of the Pledged Revenues, and shall be entitled to payment solely from such money or Government Obligations. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby provided that any determination not to redeem defeased Bonds that is made in conjunction with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable, provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves the right to call the defeased Bonds for redemption; (2) gives notice of the reservation of that right to the owners of the defeased Bonds 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 Bonds, after taking the redemption into account in determining the sufficiency of the provisions made for the payment of the defeased Bonds. B. Government Obligations. Any money so deposited with a paying agent (or escrow agent) may, at the direction of the City, also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from all Government Obligations in the hands of the paying agent (or escrow agent) pursuant to this Section which is not required for the payment of the principal of such Priority Bonds, the redemption premium, if any, therefor, and interest thereon, with respect to which such money has been so deposited, shall be remitted to the City for deposit into the System Fund. C. Payment of Priority Bonds. Except as provided in Subsection B of this Section, all money or Government Obligations set aside and held in trust pursuant to the provisions of this Section for the payment of the principal of such Priority Bonds, the redemption premium, if any, therefor, and interest thereon, shall be applied solely to and used solely for the payment of such Priority Bonds, such redemption premium, if any, and interest thereon. SECTION 19: Issuance of Additional Priority Bonds. A. Reservation of Right to Issue Additional Priority Bonds. Subject to the provisions hereinafter appearing as conditions precedent which must first be satisfied, the City reserves the right to issue, from time to time as needed, Additional Priority Bonds for any lawful purpose relating to the System. Such Additional Priority Bonds may be issued in such form and manner as now or hereafter authorized by the laws of the State of Texas for the issuance of evidences of indebtedness or other instruments, and should new methods or financing techniques be developed that differ from those now available and in normal use, the City reserves the right to 85454572.4 -21- employ the same in its financing arrangements provided only that the same conditions precedent herein required for the authorization and issuance of Additional Priority Bonds are satisfied. B. Debt Service Fund and Reserve Fund; Funding Reserve Fund. The Debt Service Fund and the Reserve Fund confirmed by this Ordinance shall secure and be used to pay all Additional Priority Bonds hereafter issued. Upon the issuance and delivery of Additional Priority Bonds, the additional amount required to be deposited in the Reserve Fund shall be so accumulated by the deposit in the Reserve Fund of all or any part of said required additional amount in cash immediately after the delivery of such Additional Priority Bonds, or, at the option of the City, (i) by the deposit of said required additional amount (or any balance of said required additional amount not deposited in cash as permitted above) in approximately equal monthly installments, made on or before the 10th day of each month following the delivery of such Additional Priority Bonds, of not less than 1 /60th of said required additional amount (or 1/60th of the balance of said required additional amount not deposited in cash as permitted above) or (ii) by the deposit of a Credit Facility which, in whole or in combination with deposits described in clause (i) above, is sufficient to satisfy the required additional amount to be on deposit in the Reserve Fund. C. Calculations. All calculations of Average Annual Principal and Interest Requirements made pursuant to this Section shall be made as of and from the date of the Additional Priority Bonds then proposed to be issued. SECTION 20: Further Requirements for Additional Priority Bonds. A. Conditions Precedent for Issuance of Additional Priority Bonds - General. As a condition precedent to the issuance of any Additional Priority Bonds, the City Manager (or other officer of the City then having the responsibility for the financial affairs of the City) shall have executed a certificate stating (i) that the City is not then in default as to any covenant, obligation or agreement contained in any ordinance or other proceeding relating to any obligations of the City payable from and secured by a lien on and pledge of the Pledged Revenues and (ii) that the amounts on deposit in all Funds or Accounts created and established for the payment and security of all Outstanding obligations payable from and secured by a lien on and pledge of the Pledged Revenues are the amounts then required to be deposited therein. Such certificate shall be dated on or before the date of delivery of such Additional Priority Bonds, but such certificate shall not be dated prior to the date an ordinance is passed authorizing the issuance of such Additional Priority Bonds. B. Conditions Precedent for Issuance of Additional Priority Bonds - Capital Improvements and for any other Lawful Purpose except for Capital Additions or for Refunding. The City covenants and agrees that Additional Priority Bonds will not be issued for the purpose of financing Capital Improvements, or for any other lawful purpose (except for Capital Additions or for refunding, which are to be issued in accordance with the provisions of Subsection C, D or E of this Section) unless and until the conditions precedent in Subsection A above have been satisfied and, in addition thereto, the City has secured a certificate or opinion of the Accountant to the effect that, according to the books and records of the City, the Net Earnings (as hereinafter defined) for the preceding Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Priority Bonds is adopted are at 85454572.4 -22- least equal to 1.25 times the Average Annual Principal and Interest Requirements for all Outstanding Priority Bonds after giving effect to the Additional Priority Bonds then proposed. The foregoing notwithstanding, the City covenants and agrees that Additional Priority Bonds may not be issued for the purpose of financing Capital Improvements when other Outstanding Priority Bonds which have been issued for the purpose of financing Capital Additions and for which capitalized interest for such other Priority Bonds has been provided for at least the twelve months subsequent to the date of issuance of the Additional Priority Bonds then proposed to be issued, unless the conditions precedent in Subsection A above have been satisfied and, in addition thereto, the City has either (1) complied with the relevant conditions in this Subsection as set forth above, or (2) if the relevant conditions of this Subsection B as set forth above cannot be satisfied, the City has satisfied the conditions precedent in Subsection C(i) and (ii) of this Section (but, for purposes of such clauses, the term Capital Improvements shall be substituted for the term Capital Additions where the term Capital Additions appears therein to the extent necessary to give recognition to the fact that Capital Improvements, rather than Capital Additions, are then to be financed) and has secured a certificate or opinion of the Accountant to the effect that, according to the books and records of the City, the Net Earnings for the preceding Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Priority Bonds is adopted are at least equal to 1.25 times the Average Annual Principal and Interest Requirements for all Outstanding Priority Bonds (other than any Priority Bonds issued for Capital Additions for which capitalized interest has been provided for at least the twelve months subsequent to the date of issuance of the Additional Priority Bonds proposed to be issued) after giving effect to the Priority Bonds then proposed. C. Conditions Precedent for Issuance of Additional Priority Bonds - Capital Additions: Initial Issue. The City covenants and agrees that Additional Priority Bonds will not be issued for the purpose of financing Capital Additions, unless the same conditions precedent specified in Subsection A above have been satisfied and, in addition thereto, either the relevant conditions precedent specified in Subsection B above are satisfied or, in the alternative, the City shall have obtained: (i) from the Engineer of Record a comprehensive Engineering Report for each Capital Addition to be financed, which report shall (A) contain (1) detailed estimates of the cost of acquiring and constructing the Capital Addition, (2) the estimated date the acquisition and construction of the Capital Addition will be completed and commercially operative, and (3) a detailed analysis of the impact of the Capital Addition on the financial operations of the system for which the Capital Addition is to be integrated and to the System as a whole during the construction thereof and for at least five Years after the date the Capital Addition becomes commercially operative, and (B) conclude that (1) the Capital Addition is necessary and will substantially increase the capacity, or is needed to replace existing facilities, to meet current and projected demands for the service or product to be provided thereby, and (2) the estimated cost of providing the service or product from the Capital Addition will be reasonable in comparison with projected costs for furnishing such service or product from other reasonably available sources; and (ii) a certificate of the Engineer of Record to the effect that, based on the Engineering Report prepared for each Capital Addition, the projected Net Earnings for each of the five Years subsequent to the date the Capital Addition becomes commercially operative (as estimated in the Engineering Report) will be equal to at least 1.25 times the Average Annual Principal and Interest Requirements for Priority Bonds then Outstanding or incurred and all Priority Bonds estimated to be issued, if any, for all Capital Improvements and for all Capital Additions then in progress or then being initiated, during the period from the date the first series 85454572.4 -23- of obligations for the Capital Additions is to be delivered through the fifth Year subsequent to the date the Capital Addition is estimated to become commercially operative. D. Completion Issues. Once a Capital Addition has been initiated by meeting the conditions precedent specified in Subsection C(i) and (ii) above and the initial Priority Bonds issued therefor are delivered, the City reserves the right to issue Additional Priority Bonds to finance the remaining costs of such Capital Addition in such amounts as may be necessary to complete the acquisition and construction thereof and make the same commercially operative without satisfaction of any condition precedent under Subsection C(i) and (ii) or Subsection B of this Section but subject to satisfaction of the following conditions precedent: (i) the City makes a forecast (the "Forecast ") of the operations of the System demonstrating the System's ability to pay all obligations, payable from the Pledged Revenues of the System to be Outstanding after the issuance of the Additional Priority Bonds then being issued for the period (the "Forecast Period ") of each ensuing Year through the fifth Year subsequent to the latest estimated date such Capital Addition is expected to be commercially operative; and (ii) the Engineer of Record reviews such Forecast and executes a certificate to the effect that (A) such Forecast is reasonable, and based thereon (and such other factors deemed to be relevant), the Pledged Revenues of the System will be adequate to pay all the obligations, payable from the Pledged Revenues of the System to be Outstanding after the issuance of the Additional Priority Bonds then being issued for the Forecast Period and (B) the proceeds from the sale of such Additional Priority Bonds are estimated to be sufficient to complete such acquisition and construction. E. Refunding Issues. The City reserves the right to issue refunding bonds to refund all or any part of the Outstanding Priority Bonds (pursuant to any law then available), upon such terms and conditions as the governing body of the City may deem to be in the best interest of the City and its inhabitants, and if less than all such Outstanding Priority Bonds are refunded, the conditions precedent prescribed in Subsection .A and B of this Section shall be satisfied and the Accountant's certificate or opinion required by Subsection B shall give effect to the issuance of the proposed refunding bonds (and shall not give effect to the Priority Bonds being refunded following their cancellation or provision being made for their payment). In addition, the City reserves the right to refund all or any part of any other obligations of the System, upon such terms and conditions as the Governing Body of the City may deem to be in the best interest of the City and its inhabitants, provided that the conditions prescribed in Subsection A and B of this Section shall be satisfied. No Accountant's certificate otherwise required by Subsection B will be required for refunding bonds, after giving effect to such proposed refunding, if there is no increase in debt service for any Year in which there will be debt service on Priority Bonds Outstanding both before and after such refunding. F. Computations; Reports. With reference to Priority Bonds anticipated and estimated to be issued or incurred, the Average Annual Principal and Interest Requirements therefor shall be those reasonably estimated and computed by the City's Director of Financial Services (or other officer of the City then having the primary responsibility for the financial affairs of the City). In the preparation of the Engineering Report required in Subsection C(i) above, the Engineer of Record may rely on other experts or professionals, including those in the employment of the City, provided such Engineering Report discloses the extent of such reliance and concludes it is reasonable so to rely. In connection with the issuance of Priority Bonds for Capital Additions, the certificate of the City's Director of Financial Services and Engineer of 85454572.4 -24- Record, together with the Engineering Report for the initial issue and the Forecast for a subsequent issue, shall be conclusive evidence and the only evidence required to show compliance with the provisions and requirements and this clause of this Section. G. Combination Issues. Priority Bonds for Capital Additions may be combined in a single issue with Priority Bonds for Capital Improvements or for any lawful purpose provided the conditions precedent set forth in Subsection B through E are complied with as the same relate to the appropriate purpose. H. Subordinated Obligations. The City may, at any time and from time to time, for any lawful purpose, issue Subordinated Obligations, the principal of and redemption premium, if any, and interest on which is payable from and secured by a pledge of and lien on the Pledged Revenues junior and subordinate to the lien and pledge created hereby for the security of the Priority Bonds and the payments required to be made hereunder into the Debt Service Fund and the Reserve Fund; provided, however, that any such pledge and lien securing the Subordinated Obligations shall be, and shall be expressed to be, subordinate in all respects to the pledge of and lien on the Pledged Revenues as security for the Priority Bonds; and provided further that any default with respect to the issuance of Subordinated Obligations will not be deemed a default with respect to the Priority Bonds. I. Definition of Net Earnings. As used in this Section, the term "Net Earnings" shall mean the Gross Revenues of the System after deducting the Operating Expenses of the System, but not expenditures which, under standard accounting practice, should be charged to capital expenditures. J. Determination of Net Earnings. In making a determination of Net Earnings for any of the purposes described in this Section, the Accountant may take into consideration a change in the rates and charges for services and facilities afforded by the System that became effective at least 60 days prior to the last day of the period for which Net Earnings are determined and, for purposes of satisfying any of the Net Earnings test described above, make a pro forma determination of the Net Earnings of the System for the period of time covered by the Accountant's certification or opinion based on such change in rates and charges being in effect for the entire period covered by the Accountant's certificate or opinion. SECTION 21: General Covenants. The City further covenants and agrees that in accordance with and to the extent required or permitted by law: A. Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance, and each ordinance authorizing the issuance of Additional Priority Bonds; it will promptly pay or cause to be paid the principal amount of and interest on every Priority Bond, on the dates and in the places and manner prescribed in such ordinances and such Priority Bonds; and it will, at the time and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the System Fund and the Funds herein created; and any registered owner of any Priority Bond may require the City, its officials and employees to carry out, respect or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Priority Bonds, by all legal and equitable means, including specifically, but without limitation, the use and filing of 85454572.4 -25- mandamus proceedings, in any court of competent jurisdiction, against the City, its officials and employees. B. City's Legal Authority. It is a duly created and existing home rule city of the State of Texas, and is duly authorized under the laws of the State of Texas to issue the Bonds; that all action on its part for the issuance of the Bonds has been duly and effectively taken, and that the Bonds in the hands of the owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. C. Acquisition and Construction; Operation and Maintenance. (1) It shall use its best efforts in accordance with Prudent Utility Practice to acquire and construct, or cause to be acquired and constructed, any Capital Additions or Capital Improvements, in accordance with the plans and specifications therefor, as modified from time to time, with due diligence and in a sound and economical manner; and (2) it shall at all times use its best efforts to operate or cause to be operated the System properly and in an efficient manner, consistent with Prudent Utility Practice, and shall use its best efforts to maintain, preserve, reconstruct and keep the same or cause the same to be so maintained, preserved, reconstructed and kept, with the appurtenances and every part and parcel thereof, in good repair, working order and condition, and shall from time to time make, or use its best efforts to cause to be made, all necessary and proper repairs, replacement and renewals so that at all times the operation of the System may be properly and advantageously conducted. D. Title. It has or will obtain lawful title, whether such title is in fee or lesser interest, to the lands, buildings, structures and facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands, buildings, structures and facilities, and every part thereof, for the benefit of the owners of the Priority Bonds, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Pledged Revenues to the payment of the Priority Bonds in the manner prescribed herein, and has lawfully exercised such rights. E. Liens. It will from time to time and before the same become delinquent pay and discharge all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or the System; it will pay all lawful claims for rents, royalties, labor, materials and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the liens granted hereunder shall be fully preserved in the manner provided herein, and it will not create or suffer to be created any mechanic's, laborer's, materialman's or other lien or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided however, that no such tax, assessment or charge, and that no such claims which might be used as the basis of a mechanic's, laborer's, materialman's or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. F. No Free Service. No free service or service otherwise than in accordance with the established rate schedule shall be furnished, directly or indirectly, by the System to any person, firm, corporation or other entity, other than the City. No part of the salary of any official or employee of the City or his replacement shall be paid from Pledged Revenues unless and only to the extent the duties and performances of such official or employee or his replacement appertain 85454572.4 -26- directly to the System. To the extent the City receives the services of the System, such services shall be accounted for according to the established rate schedule. G. Further Encumbrance. It will not additionally encumber the Pledged Revenues in any manner, except as permitted in this Ordinance in connection with Priority Bonds, unless said encumbrance is made junior and subordinate in all respects to the liens, pledges, covenants and agreements of this Ordinance; but the right of the City to issue Subordinated Obligations payable in whole or in part from a subordinate lien on the Pledged Revenues is specifically recognized and retained. H. Sale, Lease or Disposal of Property. No part of the System shall be sold, leased, mortgaged, demolished, removed or otherwise disposed of, except as follows: (1) To the extent permitted by law, the City may sell or exchange at any time and from time to time any property or facilities constituting part of the System only if (A) it shall determine such property or facilities are not useful in the operation of the System, or (B) the proceeds of such sale are $250,000 or less, or it shall have received a certificate executed by the Engineer of Record and the City Manager stating, in their opinion, that the fair market value of the property or facilities exchanged is $250,000 or less, or (C) if such proceeds or fair market value exceeds $250,000 it shall have received a certificate executed by the Engineer of Record and the City Manager stating (i) that system within the System of which the property or facilities comprises a part thereof and (ii) in their opinion, that the sale or exchange of such property or facilities will not impair the ability of the City to comply during the current or any future Year with the provisions of Subsection K of this Section. The proceeds of any such sale or exchange not used to acquire other property necessary or desirable for the safe or efficient operation of the System shall forthwith, at the option of the City (i) be used to redeem or purchase Priority Bonds, or (ii) otherwise be used to provide for the payment of Priority Bonds. The foregoing notwithstanding, if such property or facilities sold or exchanged constituted property or facilities comprising all or a part of a system within the System, the acquisition, improvement or extension of such system having not been financed by the City in any manner with the proceeds of Priority Bonds, or with the proceeds of obligations which were refunded in whole or in part with the proceeds of Priority Bonds, then the City may utilize the proceeds of such sale or exchange for any lawful purpose; and (2) To the extent permitted by law, the City may lease or make contracts or grant licenses for the operation of, or make arrangements for the use of, or grant easements or other rights with respect to, any part of the System, provided that any such lease, contract, license, arrangement, easement or right (A) does not impede the operation by the City of the System and (B) does not in any manner impair or adversely affect the rights or security of the owners of the Priority Bonds under this Ordinance; and provided, further, that if the depreciated cost of the property to be covered by any such lease, contract, license, arrangement, easement or other right is in excess of $500,000, the City shall have received a certificate executed by the Engineer of Record and the City Manager that the action of the City with respect thereto does not result in a breach of the conditions under this clause (2). Any payments received by the City under or in 85454572.4 -27- connection with any such lease, contract, license, arrangement, easement or right in respect of the System or any part thereof shall constitute Gross Revenues. I. Books, Records and Accounts. It shall keep proper books, records and accounts separate and apart from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the System and the City shall cause said books and accounts to be audited annually as of the close of each Year by the Accountant. J. Insurance. (1) Except as otherwise permitted in clause (2) below, it shall cause to be insured such parts of the System as would usually be insured by corporations operating like properties, with a responsible insurance company or companies, against risks, accidents or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance shall also be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims which would be protected by such insurance. At any time while any contractor engaged in construction work shall be fully responsible therefor, the City shall not be required to carry insurance on the work being constructed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the bondholders and their representatives at all reasonable times. (2) In lieu of obtaining policies for insurance as provided above, the City may self - insure against risks, accidents, claims or casualties described in clause (1) above. (3) The annual audit hereinafter required shall contain a section commenting on whether or not the City has complied with the requirements of this Section with respect to the maintenance of insurance, and listing the areas of insurance for which the City is self - insuring, all policies carried, and whether or not all insurance premiums upon the insurance policies to which reference is hereinbefore made have been paid. K. Rate Covenant. It will fix, establish, maintain and collect such rates, charges and fees for the use and availability of the System at all times as are necessary to produce Gross Revenues and other Pledged Revenues equal to the greater of amounts determined in accordance with clauses (1) or (2) below, to -wit, amounts sufficient: (1) (A) to pay all current Operating Expenses of the System, and (B) to produce Net Revenues for each Year at least equal to 1.25 times the Average Annual Principal and Interest Requirements of all then Outstanding Priority Bonds; or (2) to pay the sum of (A) all current Operating Expenses, (B) the Average Annual Principal and Interest Requirements on the then Outstanding Priority Bonds, (C) deposits to the Reserve Fund required for the Priority Bonds, and (D) amounts required to pay all other obligations of the System reasonably anticipated to be paid from Gross Revenues during the current Year. The calculation of Average Annual Principal and Interest Requirements on all Outstanding Priority Bonds shall be net of capitalized interest for such Priority Bonds only if the money in a Capitalized Interest Account received from proceeds of such Priority Bonds held in cash or are invested in Government Obligations. The foregoing notwithstanding, such rates, charges and 85454572.4 -28- fees shall be fixed, established, maintained and collected at a level sufficient to enable the City to pay debt service on Priority Bonds during the current Year. L. Audits. After the close of each Year while any Priority Bonds are Outstanding, an audit will be made of the books and accounts relating to the System and the Pledged Revenues by the Accountant. As soon as practicable after the close of each such Year, and when said audit has been completed and made available to the City, a copy of such audit for the preceding year shall be mailed to any holder of the then Outstanding Priority Bonds who shall so request in writing. Such annual audit reports shall be open to the inspection of the registered owners of the Priority Bonds and their agents and representatives at all reasonable times. M. Governmental Agencies. It will comply with all of the terms and conditions of any and all franchises, permits and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorization and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation and maintenance of the System. N. No Competition. To the extent it legally may, it will not grant any franchise or permit for the acquisition, construction or operation of any competing facilities which might be used as a substitute for the System's facilities, and, to the extent that it legally may, the City will prohibit any such competing facilities. O. Rights of Inspection. The Engineer of Record or any registered owner of $100,000 in aggregate principal amount of the Priority Bonds then Outstanding shall have the right at all reasonable times to inspect the System and all records, accounts and data of the City relating thereto, and upon request the City shall furnish to the Engineer of Record or such registered owner, as the case may be, such financial statements, reports and other information relating to the City and the System as the Engineer of Record or such registered owner may from time to time reasonably request. P. Surplus Bond Proceeds. Any surplus proceeds from the Bonds remaining after the acquisition and completion of the System improvements shall be used to redeem Bonds in the manner specified in Section 2.B(2) hereof, to the extent any such surplus proceeds are not otherwise required to be rebated to the United States of America in accordance with the provisions of Section 22 hereof, to pay debt service on the Bonds. SECTION 22: Covenants Regarding Tax - Exemption. 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. 85454572.4 -29- "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 Bonds. "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 Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "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 Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of 1) any Investment has the meaning set forth in section 1.148 -5 of the Regulations; and 2) the Bonds has the meaning set forth in section 1.148 -4 of the Regulations. B. 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 Bond 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 Bond, 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 Bonds 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 Bonds: (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 Bonds, and not use or permit the use of such Gross Proceeds (including all contractual arrangements such as take, take or pay, certain requirements and other similar output contracts or 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 85454572.4 -30- 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 Bonds 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. (3) not allow any "nonqualified amount" (as defined in section 141(b)(8) of the Code) of the Bonds to exceed the excess of (i) $15,000,000 over (ii) the aggregate nonqualified amounts with respect to all prior tax - exempt bonds, five percent or more of the proceeds of which are or will be used with respect to any facility financed by the Bonds (or any other facility which is part of the same project as a facility financed by the), all within the meaning of section 141(b)(4) of the Code; and (4) not allow more than the lesser of (i) $5,000,000 or (ii) five percent of the proceeds of the Bonds to acquire nongovernmental output property, as defined in section 141(d)(2) of the Code, except if 95 percent or more of the output from such facility will be consumed in a "qualified service area" (as defined in section 141(d)(3 of the Code) of the City or in a "qualified annexed area" (as defined in section 141(d)(3) of the Code) of the City. D. No Private Loan. Except to the extent that it will not cause the Bonds 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 Bonds 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. E. Not to Invest at Higher Yield. Except to the extent that it will not cause the Bonds 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 Bonds 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 Bonds. 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 Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. 85454572.4 -31- 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 Bond is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds 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 less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(0 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 Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchaser 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 Debt Service Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, any Rebate Amount in the manner and on or before the dates specified in section 148(0 of the Code and the Regulation and rulings thereunder. 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 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 Bonds, 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 85454572.4 -32- resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. J. Bonds Not Hedge Bonds. (1) The City reasonably expects to spend at least 85% of the spendable proceeds of the Bonds within three years after the issue of such Bonds. (2) Not more than 50% of the proceeds of the Bonds will be invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years or more. K. Temporary Periods. The City will or will not waive temporary periods with respect to the Bonds as provided in the City's Tax Exemption Certificate. L. Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem, City Manager, any Assistant City Manager, and the City's Director of Financial Services, either or any combination of the foregoing, to make such elections in the Certificate as to Tax Exemption or similar or other appropriate certificate, form, or document permitted or required pursuant to the provisions of the Code, or Regulations as they deem necessary or appropriate in connection with the Bonds, and other transactions related to any Priority Bonds. Such elections shall be deemed to be made on the Closing Date. SECTION 23: Taxable Obligations. The provisions of Section 22 of this Ordinance notwithstanding, the City reserves the ability to issue Additional Priority Bonds in a manner such that such obligations are not obligations described in section 103(a) of the Code or are obligations which constitute "private activity bonds" within the meaning of section 141 of the Code. SECTION 24: Amendment of Ordinance. . A. Approval by Registered Owners. The registered owners of a majority in aggregate principal amount of the Priority Bonds then Outstanding shall have the right from time to time to approve any amendment to this Ordinance which may be deemed necessary or desirable by the City; provided, however, that without the consent of the registered owners of all of the Priority Bonds at the time Outstanding, nothing herein contained shall permit or be construed to permit the amendment of the terms and conditions in this Ordinance or in the Priority Bonds so as to: (1) make any change in the maturity of any of the Outstanding Priority Bonds; (2) reduce the rate of interest borne by any of the Outstanding Priority Bonds; (3) reduce the amount of the principal payable on the Outstanding Priority Bonds; (4) modify the terms of payment of principal of, premium, if any, or interest on the Outstanding Priority Bonds or impose any conditions with respect to such payment; 85454572.4 -33- (5) affect the rights of the registered owners of less than all of the Priority Bonds then Outstanding; (6) amend this Subsection A of this Section; or (7) change the minimum percentage of the principal amount of Priority Bonds necessary for consent to any amendment; unless such amendment or amendments be approved by the registered owners of all of the Priority Bonds then Outstanding. B. Notice. If at any time the City shall desire to amend the Ordinance under this Section, the City shall cause notice of the proposed amendment to be published in a financial newspaper or journal published in The City of New York, New York, and a newspaper of general circulation in the City, once during each calendar week for at least two successive calendar weeks. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the principal office of the Paying Agent/Registrar for inspection by all holders of Priority Bonds. Such publication is not required, however, if notice in writing is given to each registered owner of Priority Bonds. C. Consent Obtained. Whenever at any time not less than 30 days, and within one year, from the date of the first publication of said notice or other service of written notice, the City shall receive an instrument or instruments executed by the registered owners of at least a majority in aggregate principal amount of the Priority Bonds then Outstanding, which instrument or instruments shall refer to the proposed amendment described in said notice and which specifically consent to and approve such amendment in substantially the form of the copy thereof on file with the Paying Agent/Registrar, the Governing Body may pass the amendatory ordinance in substantially the same form. D. Amendatory Ordinance. Upon the passage of any amendatory ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be amended in accordance with such amendatory ordinance, and the respective rights, duties and obligations under this Ordinance of the City and all the registered owners of then Outstanding Priority Bonds and all future Priority Bonds shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such amendments. E. Consent Irrevocable for Six Months. Any consent given by the registered owner of a Priority Bond pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the first publication of the notice provided for in this Section, and shall be conclusive and binding upon all future registered owners of the same Priority Bond during such period. Such consent may be revoked at any time after six months from the date of the first publication of such notice by the registered owner who gave such consent, or by a successor in title, by filing notice thereof with the Paying Agent/Registrar and the City, but such revocation shall not be effective if the registered owners of at least a majority in aggregate principal amount of the then Outstanding Priority Bonds as in this Section defined have, prior to the attempted revocation, consented to and approved the amendment. 85454572.4 -34- F. Amendments without Consent. The foregoing provisions of this Section notwithstanding, the City, by action of the Governing Body may amend this Ordinance for any one or more of the following purposes: (1) to add to the covenants and agreements of the City in this Ordinance contained, other covenants and agreements thereafter to be observed, grant additional rights or remedies to the registered owners of the Priority Bonds or to surrender, restrict or limit any right or power herein reserved to or conferred upon the City; (2) to make such provisions for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained in this Ordinance, or in regard to clarifying matters or questions arising under this Ordinance, as are necessary or desirable and not contrary to or inconsistent with this Ordinance and which shall not adversely affect the interests of the registered owners of the Priority Bonds then Outstanding; (3) to modify any of the provisions of this Ordinance in any other respect whatever, provided that (i) such modification shall be, and be expressed to be, effective only after all Bonds and each series of Additional Priority Bonds Outstanding at the date of the adoption of such modification shall cease to be Outstanding, and (ii) such modification shall be specifically referred to in the text of all Priority Bonds issued after the date of the adoption of such modification; (4) to make such amendments to this Ordinance as may be required, in the opinion of nationally recognized bond counsel acceptable to the City, to ensure compliance with sections 103 and 141 through 150 of the Code and the regulations promulgated thereunder and applicable thereto; (5) to make such changes, modifications or amendments as may be necessary or desirable in order to allow the owners of the Priority Bonds to thereafter avail themselves of a book -entry system for payments, transfers and other matters relating to the Priority Bonds, which changes, modifications or amendments are not contrary to or inconsistent with other provisions of this Ordinance and which shall not adversely affect the interests of the owners of the Priority Bonds; (6) to make such changes, modifications or amendments as are permitted by Section 34.D of this Ordinance; (7) to make such changes, modifications or amendments as may be necessary or desirable in order to obtain or maintain the granting of a rating on the Priority Bonds by a Rating Agency or to obtain or maintain a Credit Facility, or to obtain the approval of the Bonds from the Attorney General of the State of Texas; and (8) to make such changes, modifications or amendments as may be necessary or desirable, which shall not adversely affect the interests of the owners of the Priority Bonds, in order, to the extent permitted by law, to facilitate the economic and practical utilization of interest rate swap agreements, foreign currency exchange agreements, or similar type of agreements with respect to the Priority Bonds. 85454572.4 -35- Notice of any such amendment may be published by the City in the manner described in Subsection B of this Section; provided, however, that the publication of such notice shall not constitute a condition precedent to the adoption of such amendatory ordinance and the failure to publish such notice shall not adversely affect the implementation of such amendment as adopted pursuant to such amendatory ordinance. SECTION 25: Damaged, Mutilated, Lost, Stolen, or Destroyed Bonds. A. Substitute Bonds. In the event any Outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. B. Application for Replacement. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the applicant for a replacement bond shall furnish to the City and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the applicant shall furnish to the City and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the applicant shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated. C. Payment upon Maturity. Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have matured, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the City may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. D. Cost of Replacement Bonds. Prior to the issuance of any replacement Bond, the Paying Agent/Registrar shall charge the owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement Bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the City whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. E. Authority for Replacement Bonds. In accordance with Chapter 1206, as amended, Texas Government Code, this Section of this Ordinance shall constitute authority for the issuance of any such replacement Bond without necessity of further action by the Governing Body or any other body or person, and the duty of the replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall authenticate and deliver such bonds in the form and manner and with the effect, as provided in Subsection 4.A of this Ordinance for Bonds issued in exchange for other Bonds. 85454572.4 -36- SECTION 26: Confirmation of Sale. The sale of the Bonds to the Texas Water Development Board (the Purchaser) for the purchase price of $8,000,000, which represents a purchase price of par and no accrued interest, pursuant to a loan commitment received from the Purchaser is hereby confirmed. Delivery of the Bonds shall be made to the Purchaser as soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance with the terms of sale. SECTION 27: Compliance with Purchaser's Rules and Regulations. The City will comply with all of the requirements contained in the resolution or resolutions adopted by the Purchaser with respect to the issuance of the Bonds. In addition, in compliance with the Purchaser's Water Infrastructure Fund Program Rules, the City agrees and covenants so long as the Purchaser is the sole Holder of the Bonds: A. to keep and maintain full and complete records and accounts pertaining to the construction of the project financed with the proceeds of sale of the Bonds, including the Construction Fund, in accordance with the standards set forth by the Government Accounting Standard Board; B. to create and establish the Construction Fund in accordance with Section 12 hereof for the receipt and disbursement of all proceeds from the sale of the Bonds and all other funds acquired by the City in connection with the planning and construction of the project or projects financed, in whole or in part, by the Purchaser pursuant to the loan evidenced by the Bonds and all funds deposited to the credit of the Construction Fund shall be disbursed only for the payment of costs and expenses incurred in connection with the planning and building of such projects as approved by the Purchaser and as otherwise allowed by the rules; C. upon completion of the construction of the project or projects financed, in whole or in part, by the loan evidenced by the Bonds, to provide a final accounting to the Purchaser of the total costs of the project or projects. In determining the amount of available funds for building the project or projects, the City agrees to account for all amounts deposited to the credit of the Construction Fund, including all loan funds extended by the Purchaser, all other funds available from the projects as described in the project engineer's or fiscal representative's sufficiency of funds statement and all interest earned by the City on money in the Construction Fund; D. to maintain current, accurate, and complete records and accounts necessary to demonstrate compliance with financial assistance related legal and contractual provisions; E. to comply with any special conditions specified by the Purchaser's water conversation plan as specified in 31 TAC 363.42(a)(2)(F) until all financial obligations to the Purchaser have been discharged; and F. to abide by the Purchaser's rules and relevant state statutes, including, but not limited to, the Purchaser's pre - design funding procedures as specified in 31 TAC §363.1206; G. to not use Bond proceeds to pay for the cost of sampling, testing, removing or disposing of injection well fluids, brine concentration, municipal solid wastes, soils and/or media contaminated by hazardous substances, and for managing and disposing of any other hazardous substances, including (but not limited to) radioactive substances and low -level radioactive 85454572.4 -37- wastes, that may be generated at the project site during planning, design, and construction activities; H. to notify the Executive Administrator of the Purchaser prior to taking any actions to alter the legal status of the City in any manner (such as by conversion to a conservation and reclamation district or a sale - transfer - merger with another retail public utility that results in a change in governance of the System) and to receive approval from the Purchaser of any action to convey the City's obligations to the Purchaser, as the Holder of the Bonds, to another entity; I. to the extent permitted by law, to indemnify, hold harmless, and protect the Purchaser (but not subsequent Holders of the Bonds) from any and all claims, causes of action, or damages to the person or property of third parties arising either directly or indirectly from the sampling, analysis, transport, storage, treatment, and disposition of any hazardous substance, radioactive substance, and /or solid waste, as those terms are defined in the Texas Solid Waste Disposal Act (codified at Chapter 361, as amended, Texas Health and Safety Code) and the Radiation Control Act (codified at Chapter 401, as amended, Texas Health and Safety Code), that may be generated by the City, its contractors, consultants, agents, officials, and employees during the course of the project or projects financed with Bond proceeds; and J. to apply for and obtain all permits, licenses, letter authorizations, notifications of solid waste registration, notices of intent and other regulatory approvals that may be required by those federal, state, regional, and local governmental entities responsible for regulating environmental, health and safety, and transportation- related matters arising from or pertaining to the generation, management, and disposal of all municipal solid wastes, radioactive substances, and low -level radioactive - wastes that may be generated as the result of the planning, design, and construction of the project or projects financed with Bond proceeds, including (but not necessarily limited to) surface water discharge permit(s), stormwater permits, underground injection control permits, solid waste facility registrations, notifications, and /or permits, hazardous waste permits, radioactive materials management licenses, and low -level radioactive waste permits, registrations, and exemptions. SECTION 28: Approval and Registration of Bonds. The City Manager of the City is hereby authorized to have control of the Bonds and all necessary records and proceedings pertaining to the Bonds pending their delivery and their investigation, examination and approval by the Attorney General, and their registration by the Comptroller of Public Accounts. Upon registration of the Bonds, the Comptroller of Public Accounts (or a deputy designated in writing to act therefor) shall manually sign the Comptroller's Registration Certificate accompanying the Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on each such certificate. SECTION 29: Use of Proceeds. Proceeds from the sale of the Bonds shall be applied as follows: (1) Certain proceeds of the Bonds in the amount of $ shall be deposited into the Reserve Fund on the Closing Date constituting the portion of the Required Amount attributable to the Bonds. 85454572.4 -38- (2) Certain of the proceeds derived from the sale of the Bonds shall be (i) deposited into the Construction Fund to pay the costs of issuance on the Bonds or to pay the construction costs, if any, of the projects to be reimbursed or financed with the proceeds of the Bonds, and such amount may be deposited in the Escrow Agreement authorized by the provisions of Section 32 hereof. Interest earned on the proceeds of the Bonds deposited into the Construction Fund pending payment of costs of issuance or completion of the project or projects financed with such proceeds shall be accounted for, maintained, deposited, and expended as required by applicable law. Thereafter, such amount shall be immediately expended in accordance with Subsection 26.0 hereof. SECTION 30: Default And Remedies. A. Events of Default. Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an "Event of Default ": (1) the failure to make payment of the principal of, premium, if any, or interest on any of the Bonds when the same becomes due and payable; or (2) default in the performance or observance of any other covenant, agreement or obligation of the City, the failure to perform which materially, adversely affects the rights of the registered owners of the Bonds, including, but not limited to, their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any registered owner to the City. B. Remedies for Default. (1) Upon the happening of any Event of Default, then and in every case, any registered owner or an authorized representative thereof, including, but not limited to, a trustee or trustees therefor, may proceed against the City, or any official, officer or employee of the City in their official capacity, for the purpose of protecting and enforcing the rights of the registered owners under this Ordinance, by mandamus or other suit, action or special proceeding in equity or at law, in any court of competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the registered owners hereunder or any combination of such remedies. (2) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all registered owners of Bonds then Outstanding. C. Remedies Not Exclusive. (1) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Bonds or now or hereafter existing at law or in equity; provided, however, that notwithstanding any 85454572.4 -39- other provision of this Ordinance, the right to accelerate the debt evidenced by the Bonds shall not be available as a remedy under this Ordinance. (2) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. (3) By accepting the delivery of a Bond authorized under this Ordinance, such registered owner agrees that the certifications required to effectuate any covenants or representations contained in this Ordinance do not and shall never constitute or give rise to a personal or pecuniary liability or charge against the officers, employees or trustees of the City or the Governing Body. (4) None of the members of the Governing Body, nor any other official or officer, agent, or employee of the City, shall be charged personally by the registered owners with any liability, or be held personally liable to the registered owners under any term or provision of this Ordinance, or because of any Event of Default or alleged Event of Default under this Ordinance. SECTION 31: Further Proceedings. The Mayor, the City Manager, any Assistant City Manager, the City Secretary, and the Director of Financial Services, and all other officers, employees and agents of the City, and each of them, shall be and they are hereby expressly 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 herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance and the Bonds, including, but not limited to, conforming documents to receive the approval of the Texas Attorney General and to receive a rating from any Rating Agency, the printing of a statement relating to the insuring of the Bonds by a municipal bond insurance company, and the Representation Letter. SECTION 32: Authorization of Escrow 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 an Escrow Agreement to comply with the Purchaser's pre - design funding option rules and regulations. A copy of the Escrow Agreement is attached hereto, in substantially final form, as Exhibit D and is incorporated by reference to the provisions of this Ordinance. The Mayor and/or the City Manager, or their designee is authorized to execute the Escrow Agreement as the act and deed of the City Council. SECTION 33: Application to Texas Water Development Board. The City Council of the City ratifies and confirms its prior approval of the form and content of the Application to the Texas Water Development Board (the "Application ") prepared in the sale of the Bonds to the Purchaser and hereby approves the form and content of any addenda, supplement, or amendment thereto. SECTION 34: Continuing Disclosure Undertaking. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: 85454572.4 -40- (1) "MSRB" means the Municipal Securities Rulemaking Board. (2) "Rule" means SEC Rule 15c2 12, as amended from time to time. (3) "SEC" means the United States Securities and Exchange Commission. B. Annual Reports. The City shall provide annually to the MSRB, within six months after the end of each fiscal year ending in or after 2010, financial information and operating data with respect to the City of the general type included in the final Application authorized by Section 33 of this Ordinance being the information described in Exhibit E hereto. All such information must be filed with MSRB pursuant to its Electronic Municipal Access (EMMA) System. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit E 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 audit of such financial statements is not complete within such period, then the City shall provide unaudited statements within such period and audited financial statements for the applicable Year to the MSRB, when and if the audit report on such statements becomes available. If the City changes its Year, it will notify the MSRB of the change (and of the date of the new 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 EMMA System 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 Bonds, 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; 85454572.4 -41- (6) adverse tax opinions or events affecting the tax - exempt status of the Bonds; (7) modifications to rights of holders of the Bonds; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds; and (11) rating changes. The City shall notify 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. 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 remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit made in accordance with the laws of the State of Texas that causes the Bonds to be no longer Outstanding. The provisions of this Section are for the sole benefit of the holders and beneficial owners of the Bonds, 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 Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND 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. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. 85454572.4 -42- 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 Bonds in the primary offering of the Bonds 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 Bonds 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 Bonds. 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 Bonds in the primary offering of the Bonds, 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 35: Allocation of, and Limitation on, Expenditures for the Project. The City covenants to account for on its books and records the expenditure of proceeds from the sale of the Bonds and any investment earnings thereon to be used for the project or projects financed with Bond proceeds by allocating proceeds to expenditures within 18 months of the later of the date that .(a) the expenditure on such project or projects is made or (b) each such project or projects are completed. The foregoing notwithstanding, the City shall not expend such proceeds or investment earnings more than 60 days after the later of (a) the fifth anniversary of the date of delivery of the Bonds or (b) the date the Bonds are retired, unless the City obtains an opinion of nationally- recognized bond counsel substantially to the effect that such expenditure will not adversely affect the tax- exempt status of the Bonds. For purposes of this Section, the City shall not be obligated to comply with this covenant if it obtains an opinion of nationally - recognized bond counsel to the effect that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. SECTION 36: Miscellaneous Provisions. A. Preamble. The preamble to this Ordinance shall be considered an integral part of this Ordinance, and is herein incorporated as part of the body of this Ordinance for all purposes. 85454572.4 -43- B. Immediate Effect. This Ordinance shall be effective immediately from and after its passage in accordance with the provisions of Section 1201.028, as amended, Texas Government Code. C. Open Meeting. It is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, as amended, Texas Government Code. D. Rules of Construction. 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. Except where the context otherwise requires, terms defined in this Ordinance to impart the singular number shall be considered to include the plural number and vice versa. References to any named person means that party and its successors and assigns. References to any constitutional, statutory or regulatory provision means such provision as it exists on the date this Ordinance is adopted by the City and any future amendments thereto or successor provisions thereof. Any reference to the payment of principal in this Ordinance shall be deemed to include the payment of any mandatory sinking fund redemption payments as may be described herein. References to any officer of the City (e.g., City Manager) means the person currently serving in such capacity on a temporary, interim or permanent basis. Any reference to FORM OF BOND shall refer to the form attached to this Ordinance as Exhibit A. E. Inconsistent Provisions. All orders and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed and declared to be inapplicable, and the provisions of this Ordinance shall be and remain controlling as to the matters prescribed herein. 85454572.4 * * * * * * * * * * * * * * * * * ** -44- SIGNED AND SEALED THIS 9th DAY OF MARCH, 2010. CITY OF CORPUS CHRISTI, TEXAS Mayor ATTEST: City Secretary (SEAL) APPROVED THIS DAY OF March, 2010: R. Jay Reining First Assistant City Attorney For City Attorney EXHIBIT A - Form of Bond EXHIBIT B - Form of Paying Agent/Registrar Agreement EXHIBIT C - DTC Letter of Representations EXHIBIT D - Form of Escrow Agreement EXHIBIT E - Description of Annual Financial Information 85454572.4 S -1 A. FORM OF DEFINITIVE BOND. REGISTERED NO. EXHIBIT A REGISTERED PRINCIPAL AMOUNT United States of America State of Texas Counties of Kleberg, Nueces and San Patricio CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE IMPROVEMENT BOND SERIES 2010 Bond Date: March 1, 2010 Interest Rate: Stated Maturity: CUSIP No.: ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF CORPUS CHRISTI, IN KLEBERG, NUECES AND SAN PATRICIO COUNTIES, TEXAS (the "Issuer "), hereby promises to pay to , or to the registered assignee hereof (either being hereinafter called the "registered owner ") the principal amount of DOLLARS and to pay interest thereon from the Interest Commencement Date (as defined in the hereinafter - defined Bond Ordinance), on 15, and semiannually on each January 15 and July 15 thereafter to the maturity date specified above, or the date of redemption prior to maturity, at the interest rate per annum specified above; except that if the Paying Agent/Registrar's Authentication Certificate appearing on the face of this Bond is dated later than 15, , such interest is payable semiannually on each 15 and 15 following such date. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the designated trust office in Austin, Texas (the "Designated Trust Office ") of Wells Fargo Bank, National Association, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest payment date by check or draft, dated as of such interest payment date, drawn by the Paying Agent /Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance ") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent/Registrar by United States mail, first -class postage prepaid, on each such interest payment date, to the registered owner hereof, at its address as it appeared on the last business day of the month next preceding each such date (the "Record Date ") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. Any accrued interest due at maturity or upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner upon presentation and surrender of this Bond for redemption and payment at the Designated Trust Office of the Paying Agent/Registrar. The Issuer covenants with 85454572.4 A -1 the registered owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent/Registrar, from the "Debt Service Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. While the Bonds are held by the Purchaser, payment of principal of, premium, if any, and interest on the Bonds shall be made by federal funds wire transfer, at no cost to the Purchaser, to an account at a financial institution located in the United States designated by the Purchaser. IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Designated Trust Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, or the United States Postal Service is not open for business, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close, or the United States Postal Service is not open for business; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND is one of a series of bonds of like tenor and effect except as to number, principal amount, interest rate, maturity, and right of prior redemption, dated as of the Bond Date specified above, aggregating $8,000,000 (herein sometimes called the "Bonds "), issued for the purposes of (i) acquiring, purchasing, constructing, improving, repairing, extending, equipping, and renovating the City's combined waterwork system, wastewater disposal system and gas system (collectively, the "System "), (ii) funding the increase in the Required Amount attributable to the issuance of the Bonds, and (iii) to pay the costs of issuing the Bonds. THE OUTSTANDING BONDS maturing on and after July 15, 2021 may be redeemed prior to their scheduled maturities, at the option of the Issuer and in inverse order of maturity, in whole or in part, on July 15, 2020, or on any date thereafter, at the redemption price of par plus accrued interest thereon to the date fixed for redemption. The Bonds or portions thereof redeemed within a maturity shall be selected by lot or other customary random method selected by the Paying Agent/Registrar (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000); provided, further, that during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, if fewer than all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity and bearing such interest rate shall be selected in accordance with the arrangements between the City and the securities depository. AT LEAST thirty (30) days prior to the date any such Bonds are to be redeemed, a notice of redemption, authorized by appropriate resolution passed by the Governing Body, shall be given in the manner set forth below. A written notice of such redemption shall be given to the registered owner of each Bond or a portion thereof being called for redemption by depositing such notice in the United States mail, first class postage prepaid, addressed to each such registered owner at his address shown on the Registration Books kept by the Paying Agent/Registrar. By the date fixed for any such redemption due provision shall be made by the City with the Paying Agent/Registrar for the payment of the required redemption price for the Bonds or the portions thereof which are to be so redeemed, plus accrued interest thereon to the 85454572.4 A -2 date fixed for redemption. If such written notice of redemption is given, and if due provision for such payment is made, all as provided above, the Bonds, or the portions thereof which are to be so redeemed, thereby automatically shall be redeemed prior to their scheduled maturities, shall not bear interest after the date fixed for their redemption, and shall not be regarded as being Outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of the Bonds or any portion thereof. If a portion of any Bonds shall be redeemed, a substitute Bond or Bonds having the same stated maturity date, bearing interest at the same interest rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in an aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance. ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in an Authorized Denomination. As provided in the Bond Ordinance, this Bond may, at the request of the registered owner or the assignee or assignees hereof, be assigned, transferred, converted into and exchanged for a like aggregate amount of fully registered Bonds, without interest coupons, payable to the appropriate registered owner, assignee or assignees, as the case may be, having any Authorized Denomination or Denominations as requested in writing by the appropriate registered owner, assignee or assignees, as the case may be, upon surrender of this Bond to the Paying Agent/Registrar at its Designated Trust Office for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any authorized denomination to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be registered. The form of Assignment printed or endorsed on this Bond may be executed by the registered owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying Agent/Registrar maybe used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the registered owner. The one requesting such conversion and exchange shall pay the Paying Agent/Registrar's reasonable standard or customary fees and charges for converting and exchanging any Bond or portion thereof. In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, conversion or exchange, as a condition precedent to the exercise of such privilege. The foregoing notwithstanding, in the case of the conversion and exchange of an assigned and transferred Bond or Bonds or any portion or portions thereof, such fees and charges of the Paying Agent/Registrar will be paid by the Issuer. The Paying Agent/Registrar shall not be required (i) to make any such transfer, conversion or exchange during the period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption and ending at the close of business on the day of such mailing, or (ii) to transfer, convert or exchange any Bonds so selected for redemption when such redemption is scheduled to occur within 30 calendar days; provided, however, such limitation of transfer shall not be applicable to an exchange by the registered owner of an unredeemed balance of a Bond called for redemption in part. 85454572.4 A -3 WHENEVER the beneficial ownership of this Bond is determined by a book entry at a securities depository for the Bonds, the foregoing requirements of holding, delivering or transferring this Bond shall be modified to require the appropriate person or entity to meet the requirements of the securities depository as to registering or transferring the book entry to produce the same effect. IN THE EVENT any Paying Agent/Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, whose qualifications substantially are similar to the previous Paying Agent/Registrar it is replacing, and promptly will cause written notice thereof to be mailed to the registered owners of the Bonds. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between each registered owner hereof and the Issuer. THE BONDS are special obligations of the Issuer payable solely from and equally secured, together with the currently Outstanding Previously Issued Priority Bonds, by a first lien on and pledge of the Pledged Revenues of the System. The Issuer has reserved the right, subject to the restrictions stated, and adopted by reference, in the Bond Ordinance, to issue Additional Priority Bonds which also may be made payable from, and secured by a first lien on and pledge of, the aforesaid Pledged Revenues, as well as Subordinated Obligations payable from a junior and inferior lien on and pledge of the Pledged Revenues. For a more complete description and identification of the revenues and funds pledged to the payment of the Bonds, and other obligations of the Issuer secured by and payable from the same source or sources as the Bonds, reference is hereby made to the Bond Ordinance. THE ISSUER has reserved the right, subject to the restrictions stated, and adopted by reference, in the Bond Ordinance, to amend the Bond Ordinance; and under some (but not all) circumstances amendments must be approved by the owners of a majority in aggregate principal amount of the Outstanding Priority Bonds. THE REGISTERED OWNER HEREOF shall never have the right to demand payment of this Bond out of any funds raised or to be raised by taxation. IT IS HEREBY certified and covenanted that this Bond has been duly and validly authorized, issued and delivered; and that all acts, conditions and things required or proper to be performed, exist and be done precedent to or in the authorization, issuance and delivery of this Bond have been performed, existed and been done in accordance with law. Capitalized terms used in this Bond without definition shall have the respective means ascribed to them in the Bond Ordinance. 85454572.4 A -4 IN WITNESS WHEREOF, this Bond has been signed with the imprinted or lithographed facsimile signature of the Mayor of said Issuer, attested by the imprinted or lithographed facsimile signature of the City Secretary, and the official seal of said Issuer has been duly affixed to, printed, lithographed or impressed on this Bond. ATTEST: City Secretary (SEAL) 85454572.4 CITY OF CORPUS CHRISTI, TEXAS Mayor [The remainder of this page intentionally left blank.] A -5 B. FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE TO APPEAR ON INITIAL BONDS 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 Bond 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) C. FORM OF REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR. REGISTRATION CERTIFICATE OF PAYING AGENT /REGISTRAR This Bond has been duly issued and registered under the provisions of the within - mentioned Bond Ordinance; the Bond or Bonds 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: WELLS FARGO BANK, NATIONAL ASSOCIATION, as Paying Agent/Registrar 85454572.4 A -6 By: Authorized Signature D. 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond 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 Bond in every particular. Signature guaranteed: 85454572.4 [The remainder of this page intentionally left blank] A -7 E. FORM OF INITIAL BOND(S). The Initial Bond(s) shall be in the form set forth in paragraph (a) of this Section, except that the form of the single fully registered Initial Bond shall be modified as follows: (i) immediately under the name of the Bond, the headings "Interest Rate " and "Stated Maturity " shall both be completed "as shown below "; and (ii) the first paragraph shall read as follows: A. ON THE MATURITY DATES SPECIFIED BELOW, THE CITY OF CORPUS CHRISTI, IN KLEBERG, NUECES AND SAN PATRICIO COUNTIES, TEXAS (the "Issuer "), hereby promises to pay to , or the registered assignee hereof (either being hereinafter called the "registered owner ") on July 15 of the years and in the Principal Amounts specified below and to pay interest thereon, from the Interest Commencement Date specified above, or from the most recent interest payment date to which interest has been paid or duly provided, at the rates of interest per annum specified in accordance with the following schedule: Stated Maturities Principal Amounts ($1 Interest Rates ( %) (Information to be inserted from schedules in Section 2.) said interest being payable initially on 15, , and semiannually thereafter on each 15 and 15. F. INSURANCE LEGEND. If bond insurance is obtained by the City for any Bond, the appropriate definitive Bonds and the Initial Bonds shall bear an appropriate legend as provided by the insurer. 85454572.4 [The remainder of this page intentionally left blank.] A -8 85454572.4 EXHIBIT B PAYING AGENT/REGISTRAR AGREEMENT SEE TAB NO. _ B -1 85454572.4 EXHIBIT C DTC LETTER OF REPRESENTATIONS SEE TAB NO. _ C -1 85454572.4 EXHIBIT D ESCROW AGREEMENT SEE TAB NO. _ D -1 EXHIBIT E DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 34 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 for each Year ending in and after 2010 are as specified (and included in the Appendix of the Application referred to below): Tables _ through _ contained in the Application; and the Audited Financial Statement of the City, as set forth in Appendix B to the Application. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to above. 85454572.4 E -1 20 AGENDA ITEM: Cemetery Corpus Christi Project by Commissioner Betty Jean Longoria. CITY COUNCIL AGENDA MEMORANDUM PRESENTATION Receive update on the Coastal Bend State Veterans STAFF PRESENTER(S): Name Title /Position Department 1. 2. 3. OUTSIDE PRESENTER(S): Name Title /Position Organization 1. Betty Jean Longoria Nueces County Commissioner 2. 3. BACKGROUND: REQUIRED COUNCIL ACTION: None. PowerPoint Supplemental Information CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDAITEM: Census 2010 presentation and update. STAFF PRESENTER(S): Name Title/Position Department 1. 2. 3. OUTSIDE PRESENTER(S): Name Title/Position Organization 1. Betty Jean Longoria Nueces County Commissioner 2. Joel Yowell 3. BACKGROUND: REQUIRED COUNCIL ACTION: None. Power Point Supplemental Information E warm