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HomeMy WebLinkAboutAgenda Packet City Council - 08/21/2012Corpus Christi Meeting Agenda - Final City Council 1201 Leopard St Corpus Christi, TX 78401 CCtexas.com Tuesday, August 21, 2012 12:00 PM Council Chambers 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, habra 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. 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, habra 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 Ms. Margaret Serna, Baha'i Faith. 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. Corpus Christi Page 1 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 E. Proclamations / Commendations 1 12 -00605 Proclamation declaring August 24, 2012 as "Contractors Safety Council Day" Proclamation declaring September 20, 2012 as "HELP Day - Putting with Your Politicians" Swearing -in Ceremony of newly appointed Board, Commission and Committee Members "At Your Service" Award, City Employee Recognition F. MINUTES: 2 12 -00617 Approval of Meeting Minutes - August 14, 2012. Attachments: Minutes - August 14 2012.pdf G. BOARDS & COMMITTEE APPOINTMENTS: (NONE) H. 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. I. CONSENT AGENDA: (ITEMS 3 -16) NOTICE TO THE PUBLIC: The following items are consent motions, resolutions, and ordinances 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. 3 12 -00452 Amendment to city /county health district agreement to combine two nurse practitioner positions into one position; and amending code of ordinances (Related items 3 - 4) Motion to approve the First Amendment to the Reformed Cooperative Agreement with Nueces County for operation of the Corpus Christi - Nueces County Public Health District in order to consolidate a nursing position under Pay Plan HTH and to authorize execution of the First Amendment by the City Manager. Corpus Christi Page 2 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Attachments: Revised Agenda Motion Memo Ordinance - Health District Pay Plan Amdmt Agreement - Health District Agmt Amdmtl Certification of funds Motion 4 12 -00363 Ordinance amending the Code of Ordinances, Chapter 39, Article 111 Section 39 -303, Subsection (m), "Pay Plan HTH," to eliminate the Grade 58 position from the plan. Attachments: Agenda Memo - Sr Nurse Ordinance Ordinance - EHord360 Health District Pay Plan Amdmt Health District AgmtAmdmtl Att B -1 v02 20120416 Exhibit.pdf Health District AgmtAmdmtl vFinal 20120425.docx 5 12 -00495 Construction contract for parking, drainage, and ADA improvements to the Evelyn Price Park (Bond 2008 - Sports Field Improvements) Motion authorizing the City Manager, or designee, to execute a Construction Contract with Safenet, LLC. of Corpus Christi, Texas in the amount of $137,764.63 for the Evelyn Price Park Improvements (Bond 2008 - Sports Field Improvements). Attachments: Memo - Evelyn Price Park Protect Budget - Evelyn Price Park Location map - Evelyn Price Park Improvements.pdf 6 12 -00532 Type A Grant to fund Del Mar College small business owner education program Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Del Mar College ( "Del Mar") to provide grant amount up to $120,000 for the FastTrac® Growth Venture program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Del Mar FastTrac® Small Business Incentives Agreement. Attachments: Agenda Memo - Del Mar FastTrac 2013 RESOLUTION Del Mar Fastrac Business Incentive Agreement 7 -11 -12 Del Mar Fastrac Growth Venture Type AAgreement 2012 Type A Business Support Agreement - Del Mar FastTrac 07 13 12 7 12 -00533 Type A Grant to fund 95 interns through the Del Mar College internship program Corpus Christi Page 3 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Del Mar College ( "Del Mar") to provide grant amount up to $173,223 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business And Job Development Corporation to administer the Del Mar College Intern Program Small Business Incentives Agreement. Attachments: Agenda Memo - Type A Delmar College Intern RESOLUTION Del Mar Intern Business Incentive Agreement 7 -6 -12 Del Mar College Intern Type AAgreement 2012 Type A Business Support Agreement - Del Mar Intern 8 12 -00534 Type A grant to fund a program that provides market research and technical assistance to small businesses Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and the Corpus Christi Regional Economic Development Corporation ( "EDC") to provide grant amount up to $96,000 to initiate an Economic Gardening program to help small businesses in Corpus Christi and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the EDC Small Business Incentives Agreement. Attachments: Agenda Memo - CCREDC Economic Gardening RESOLUTION Economic Gardening 7 -11 -12 CCREDC Type AAgreement 2012 Type A Business Support Agreement - CCREDC 07 13 12 9 12 -00535 Type A Grant to fund assistance for small businesses through workshops and counseling Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Service Corps of Retired Executives (SCORE) Chapter 221 to provide grant up to $50,000 to assist small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the SCORE Chapter 221 Small Business Incentives Agreement. Corpus Christi Page 4 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Attachments: Agenda Memo - Type A SCORE RESOLUTION SCORE Business Incentive Agreement 7 -6 -12 SCORE Type A Small Business Development Agreement Type A Business Support Agreement - SCORE 10 12 -00536 Type A Grant to fund 105 interns through the TAMU -CC Internship Program Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Texas A &M University- Corpus Christi ( "TAMU -CC ") to provide grant amount up to $190,635 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the TAMU -CC Intern Program Small Business Incentives Agreement. Attachments: Agenda memo - TXA &M Internship RESOLUTION TAMUCC Business Incentive Agreement 7 -11 -12 Texas A and M Intern Type AAgreement 2012 Type A Business Support Agreement - TAMU -CC Intern 11 12 -00587 Management agreement with Corpus Christi Museum Joint Venture Motion authorizing the City Manager or his designee to execute a twenty four month agreement with Corpus Christi Museum Joint Venture (CCMJV) to operate and manage the Corpus Christi Museum of Science and History (Museum). Attachments: Agenda Memo - Museum Management Agreement Contract - Museum Management Agreement Exhibit- Museum ManagementAgremeent Cash Flow Diagram 12 12 -00565 Second Reading Ordinance - Accepting and appropriating a federal grant to support joint City and County law enforcement efforts (First Reading - 8/14/12) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the U. S. Department of Justice, Bureau of Justice Assistance, in the amount of $169,575 for the FY 12 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Local Solicitation within the Police Department, 50% of the funds to be distributed to Nueces County under an established interlocal agreement and appropriating $169,575 in the No. 1061 Police Grants Fund. Corpus Christi Page 5 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Attachments: Agenda memo -JAG appropriation Ordinance - FY 2012 Edward Byrne Memorial Justice Assistance Grant - police 13 12 -00541 Second Reading Ordinance - Accepting and appropriating a state grant to prevent auto burglary and theft (First Reading 8/14/12) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Automobile Burglary and Theft Prevention Authority (ABTPA) in the amount of $392,474 to continue the motor vehicle theft enforcement grant within the Police Department for Year 12, with a City match of $478,212, in -kind match of $14,019 in the No. 1020 Police General Fund, and program income match of $8,541 in the NO. 1061 Police Grants Fund for a total project cost of $893,246; and appropriating the $392,474 grant in the No. 1061 Police Grants Fund continue the motor vehicle theft enforcement grant in the Police Department. Attachments: Agenda memo - ABTPA Ordinance - ABTPA Contract - ABTPA 14 12 -00542 Second Reading Ordinance - Accepting and appropriating a State grant to assist with operations for border security (First Reading 8/14/12) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Ranger Division of the Texas Department of Public Safety in the amount of $155,000 for the FY2012 Local Border Security Program within the Police Department and appropriating $155,000 in the No. 1061 Police Grants Fund.. Attachments: Agenda memo - Local Border Security Program Ordinance - Local Border Security Program Contract - Local Border Security Program 15 12 -00558 Second Reading Ordinance - Receipt and transfer of funds from the Sessions Bequest to the Friends of the Museum (First Reading 8/14/12) Ordinance authorizing the City Manager to execute all documents necessary to accept disbursements from mineral interests from the Estate of L. Lloyd Sessions; appropriating distribution in the No. 1069 Museum Trust Fund and authorizing the transfer to the Friends of the Museum of Science and History for the benefit of the Museum. Corpus Christi Page 6 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Attachments: Agenda memo - Museum Lloyd Sessions Museum Ordinance for Mineral Interest 16 12 -00399 Second Reading Ordinance - Utility easement closure to develop property located north of State Highway 44 (First Reading 8/14/12) Ordinance abandoning and vacating a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94- square -foot portion of a 10- foot -wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision; and requiring the owner, Weatherford U.S., L.P., to comply with the specified conditions. Attachments: Agenda Memo - Airport Industrial Final Ordinance with Exhibits A -C - Airport Industrial J. EXECUTIVE SESSION: (ITEM 17) 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. 17 12 -00616 Executive session pursuant to Section 551.071 of the Texas Government Code for consultation with attorneys regarding City of Greenville v. Syngenta Crop Protection, Inc. and Syngenta AG, Case No. 3:10 -cv- 00188- JPG -PMF, presently pending in the United States District Court for the Southern District of Illinois, with possible discussion and action in open session. K. PUBLIC HEARINGS: (ITEM 18 - 19) 18 12 -00574 Public Hearing on Fiscal Year 2013 Ad Valorem Tax rate Attachments: Public Hearing regarding Ad Valorem Tax Rate.doc 19 12 -00540 Change of zoning from farm rural district to general commercial at 14801 Northwest Blvd. Case No. 0612 -02: Calallen GP, LLC: A change of zoning from the "FR" Farm Rural District to the "CG -2" General Commercial District, resulting in a change of future land use from commercial and medium density residential uses to commercial uses. The property to be rezoned is described as being a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park, located on the southeast corner of Northwest Boulevard (FM 624) and FM 1889 Corpus Christi Page 7 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Planning Commission and Staff Recommendation (June 20, 2012):_ Denial of the applicant's request for the "CG -2" General Commercial District on 36.896 acres and, in lieu thereof, approval of the "CG -2" General Commercial District on Tract 1 (29.243 acres) and the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres). ORDINANCE Ordinance amending the Unified Development Code ( "UDC ") upon application by Calallen GP, LLC, on behalf of Lois Lowman, Connie Diane Brown Polk Laing, Herman Bruce Lowman, NRIP, LLC, and Cloudcroft Land Ventures, Inc. ( "Owners "), by changing the UDC Zoning Map in reference to a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park from the "FR" Farm Rural District to the "CG -2" General Commercial District on Tract 1 (29.243 acres) and the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres); amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing for penalties; providing for publication; and declaring an emergency. Attachments: Agenda Memo Calallen CG LLC FINAL (7- 18 -12) Aerial Overview Map Report for CC Ordinance w Exhibits for CG -2 & CN -1 Calallen GP (7- 23 -12) L. REGULAR AGENDA: (ITEMS 20 - 23) The following items are motions, resolutions and ordinances that will be considered and voted on individually. 20 12 -00531 Type A Grant to fund interest buy down and grant program to assist small businesses Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ( "Accion ") to provide grant amount up to $400,000 for the interest buy down and grant programs for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Accion Texas Small Business Incentives Agreement. Attachments: Agenda Memo - Accion RESOLUTION Accion Business Incentive Agreement 7 -6 -12 Accion Type AAgreement 2012 - 2013 Type A Business Support Agreement - Accion 7 -13 -12 Corpus Christi Page 8 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 21 12 -00586 Collective bargaining agreement with the Corpus Christi Firefighters' Association for wages, benefits and working conditions Motion authorizing the City Manager to enter into a collective bargaining agreement with the Corpus Christi Firefighters' Association for wages, benefits and working conditions. Attachments: Agenda memo - Fire Fire Contract 22 12 -00567 Authorization for the Issuance of Utility System Revenue Bonds (Related items 22 - 23) Motion authorizing the appointment of M. E. Allison, & Co., as Financial Advisor for one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000. Attachments: Agenda memo - Utility Revenue Bonds, Augst 14, 2012 ExhibitA - Financial Advisor Fee Schedule.pdf 23 12 -00568 Ordinance authorizing the issuance of one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000, pursuant to the delegation provisions set forth herein; making provisions for the payment and security thereof of a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the forms, terms, conditions, and resolving other matters incident and related to the issuance, sale and delivery of each series of bonds; including the approval and distribution of one or more Official Statements pertaining thereto; authorizing the execution of one or more paying agent/registrar agreements, one or more escrow agreements, and one or more purchase contracts; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; establishing the City's intention to reimburse itself from the proceeds of any such series of bonds for the prior lawful expenditure of funds to construct various City improvements; delegating the authority to the Mayor and certain members of the City staff to execute certain documents relating to the sale of each series of bonds; and providing an effective date. Attachments: Agenda memo - Utility Revenue Bonds Augst 14 2012 Ordinance.pdf M. FIRST READING ORDINANCES: (ITEMS 24 - 34) Corpus Christi Page 9 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 24 12-00602 First Reading Ordinance - Authorizing resale of 22 foreclosed properties with delinquent ad valorem taxes Ordinance authorizing the resale of twenty-two (22) properties for $76.450.00 which were foreclosed upon for failure to pay ad valorem taxeo, of which the City shall receive $7.583.99 plus $12,276.42 for partial payment of City paving and demolition Iiens. Attachments: Agenda Memo Prolerty Tax Resale 22 Prolerties Prolerty for Tax Resale Auqust 2012 Tax Resale OrdinanceAuqust2Ol2 Corpus Christi Page 10 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 25 12 -00543 First Reading Ordinance - Appropriating a federal grant to fund improvements to the Airport Terminal building Ordinance appropriating $98,299 from the Federal Aviation Administration Grant No. 3 -48- 0051 - 046 -2010 in the No. 3020 Airport Capital Improvement Fund to modify the Terminal Building; amending the FY 2012 -2013 Capital Budget adopted by Ordinance No. 029565 to add Project No. E09046GR46 and increase revenues and expenditures by $98,299. Attachments: Agenda memo - Grant 46 Amendment rev8.07.12 Ord - approp -FAA Grant 7 -26 -12 26 12 -00545 First Reading Ordinance - Accepting and appropriating a State grant amendment to fund women, infants, and children program Ordinance authorizing the City Manager or his designee to execute all documents necessary to accept and appropriate a grant amendment in the amount of $32,000 from the Texas Department of State Health Services in the Health Grants Fund No. 1066, increasing the award amount for the peer counselor and registered dietician projects by $12,000 and $20,000 respectively. Attachments: WIC Agenda memo Ordinance - FY11 -12 20120712 WIC GrntAmend - Peer Coun & Reg Dietician Letter of Amendment 27 12 -00510 First Reading Ordinance - Accepting and appropriating a State grant to fund oyster bed testing Ordinance authorizing the City Manager or his designee to execute all documents necessary to accept and appropriate a grant of $22,500 from the Texas Department of State Health Services in the Health Grants Fund No.1066 to provide laboratory services for the analysis of bay water samples. Attachments: Seafood Safety Agenda Memo Ordinance - FY12 -13 Seafood Aquatic Life grant 28 12 -00579 First Reading Ordinance - Accepting and appropriating a federal grant to fund meals for senior citizens Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $561,717 grant awarded by the Area Council on Aging of the Coastal Bend and appropriating in No. 1067 Parks and Recreation Grants Fund for the FY 2012 Senior Community Services, Elderly Nutrition Program. Corpus Christi Page 11 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Attachments: Agenda Memo - ENP Grant Award FY12 Final 7.12.12 Award letter - ENP FY 12 grant Ordinance - ENP Final Award FY 12 29 12 -00580 First Reading Ordinance - Accepting and appropriating a federal grant to fund Retired Senior Volunteer program Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $45,434 grant awarded by the Corporation for National and Community Service for the Retired Senior Volunteer Program; appropriating the $45,434 grant in the No. 1067 Parks and Recreation Grants Fund; transferring $79,173 from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grant Fund as City matching funds for the Retired Senior Volunteer program and appropriating the $79,173 in the No. 1067 Parks and Recreation Grant Fund. Attachments: Agenda Memo - RSVP Grant award 2013 Ordinance - RSVP GrantAwardFINAL Award letter - RSVP Federal 2012 -2013 30 12 -00581 First Reading Ordinance - Accepting and appropriating a federal grant to fund Senior Companion program Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $275,007 grant awarded by the Corporation for National and Community Service; appropriating the $275,007 grant in the No. 1067 Parks and Recreation Grants Fund; transferring $76,903 from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grants Fund as City matching funds for the Senior Companion Program, and appropriating the $76,903 in the No. 1067 Parks and Recreation Grants Fund. Attachments: Agenda Memo - SCP Grant award 2013 Ordinance - SCP GrantAwardFINAL Award Letter - SCP grant 2013 31 12 -00585 First Reading Ordinance - Executing a contract and appropriating funds with State to fund Community Youth Development Program in 78415 zip code area; and executing subcontracts for youth services Ordinance authorizing the City Manager or designee to execute a contract with the Texas Department of Family and Protective Services for funding for September 1, 2012 through August 31, 2014 in the total amount of $640,403; authorizing appropriation in the Grants Fund No. 1060 for Community Youth Development program contracts for the 78415 Zip Code area; and authorizing execution of subcontracts as Corpus Christi Page 12 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 follows: $85,000 to SERCO of Texas and $65,000 to Communities In Schools for subcontract period September 1, 2012 through August 31, 2013, and providing for one annual renewal period. Attachments: Agenda Item - CYD grant & subcontracts Ordinance - CYD grant & subcontracts CYD Contract Renewal with DFPS FY13 CYD Extension Agreement CIS CYD Extension Agreement SERCO 32 12 -00572 First Reading Ordinance - Type A Grant to fund expansion of facilities for Craft Training Center Ordinance approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and Associated Builders & Contractors Merit Shop Training Program, Inc. dba Craft Training Center of the Coastal Bend ( "Craft Training Center") to provide grant amount up to $750,000 for expansion of Craft's existing facility and authorizing the City Manager or designee to execute a Project Support Agreement with the Type A Board to administer the Craft Training Center Small Business Incentives Agreement and appropriating $750,000 from the unreserved fund balance in the No. 1140 Business /Job Development Fund fora business incentive grant from the Type A Corporation to Craft Training Center for expansion of its facility; Changing the FY 2012 -2013 operating budget, adopted by Ordinance No. 029565, by increasing proposed expenditures by $750,000. Attachments: Agenda memo - Craft Training Type A Board July 23 2012 ORDINANCE Crafty 8 -8 -12 Craft Training Center Type A Agreement Amendment 33 12 -00575 First Reading Ordinance - Agreement and appropriation of funds for two additional crossing guards at Flour Bluff ISD Ordinance authorizing the City Manager or designee to execute an agreement with the Flour Bluff Independent School District to reimburse the City of Corpus Christi for the services of three additional School Crossing Guard positions during the school year 12/13 and for each subsequent school year; and appropriating $20,000 from Flour Bluff Independent School District for two additional school crossing guards, changing the FY2013 Operating Budget adopted by Ordinance No. 029577 by increasing revenue and expenditures in the General Fund No. 1020 by $20,000 each. Corpus Christi Page 13 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Attachments: FBISD agenda memo Ordinance - Flour Bluff Crossing Guards 2012 - Police FBISD Crossing Guard Agreement SCG add FBISD certification of funds 34 12 -00577 First Reading Ordinance - Transferring and appropriating funds for a professional services contract to analyze the current condition of the Barge Dock Ordinance transferring and appropriating $350,000 from the Unreserved Fund Balance in No. 1120 Seawall Improvement Fund to and appropriating in the No. 3271 Seawall Type A CI P Fund for the Barge Dock Elevation Phase 1 Project; authorizing the City Manager or designee to execute a Professional Services Contract with RVE, Inc. of Corpus Christi, Texas in the amount of $309,870.00 for the Barge Dock Elevation Phase 1 Project. Attachments: Memo - Barge Dock Project Budget - Barge Dock.xlsx Location Map - Barge Dock.pdf Ordinance - Barge Dock.docx Contract - Barge Dock.pdf Presentation - Barge Dock.pdf N. FUTURE AGENDA ITEMS: (ITEMS 35 - 41) The following items are for Council's informational purposes only. No action will be taken and no public comment will be solicited. 35 12 -00598 Ordinance setting a property tax rate Ordinance setting a property tax rate of $0.570557 per $100 valuation which is effectively a 1.40% increase over the effective tax rate; and declaring an emergency. Attachments: Agenda Item - Ad Valorem Tax Rate - Adopting the Rate Ordinance - Ad Valorem Tax Rate 2012 36 12 -00600 Name change of Greenwood Branch Library and the children's area Resolution authorizing the name change of the Greenwood Library to the Ben F. McDonald Public Library and the naming of the Greenwood Library children's area the Velia and Joe De Leon Children's Library. Attachments: Agenda memo - Renaming Library & Children's area a Greenwood Library.doc Resolution - Renaming Library & Children's area a Greenwood Library.docx 37 12 -00570 Agreement for temporary tax abatement for future mixed use Corpus Christi Page 14 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 development located at 908 and 916 -928 Staples Street Resolution authorizing the execution of an agreement with Mr. Owen A. Norton providing for temporary property tax abatement. Attachments: Agenda Memo Exec Summary Form - Owen Norton RESOLUTION - Owen Norton Tax Abatement 7 -19 -12 Project Cap Tax Abatement Agreement pdf Project Cap Tax Abatement Application Project Cap Letter to Other Taxing Jurisdictions 38 12 -00506 Change order to fund sidewalk accessibility improvements (Bond Issue 2004) Motion authorizing the City Manager, or designee, to execute Change Order No. 8 with Safeco Insurance Company of America in the amount of $281,019.24 for the ADA Sidewalk Accessibility Improvements along Staples Street from Leopard Street to Six Points for under -run items, over -run items, additional sidewalk improvements, additional storm water improvements, additional detectable warning surfaces, and reconstruction of curb inlet tops (Bond Issue 2004). Attachments: Memo - Change Order 8 Location Map - ADAAccess Ramps Staples Street. pdf Change Order Summary - ADAAccess Ramps Staples Street.doc 39 12 -00563 Agreement for materials testing for Williams Drive project from Rodd Field Road to Airline Road (BOND 2008) Motion authorizing the City Manager, or designee, to execute a Construction Materials Testing Agreement with Tolunay -Wong Engineers, Inc., of Corpus Christi, Texas in the amount of $250,570 for Williams Drive Phases 1 & 2 from Rodd Field to Nile Drive and Nile Drive to Airline Road. (Bond 2008). Attachments: Memo - Williams Testing Protect Budget - Williams Testing Location Map - Williams Williams - Testing Agreement 40 12 -00556 Professional services contract to fund project management and master planning for all capital improvement projects for the Water Department Motion authorizing the City Manager, or designee, to execute a Contract for Professional Services with URS Corporation of Corpus Christi, Texas in the amount of $300,000.00 for the Water Program Management Project. Corpus Christi Page 15 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 Attachments: Memo - Water Program Management Protect Budget - Water Program Management.xlsx Location Map - Water Program Management.pdf Contract - Water Program Management Powerpoint - Water Program Management 41 12 -00578 Resolution opposing a federal administative action that threatens artificial reef habitat Resolution opposing the U.S. Department of the Interior's Idle Iron policy and supporting both the REEFS Act and the Rigs to Reef Habitat Protection Act. Attachments: Agenda memo - REEFS Act Resolution for Rigs to Reef David Sikes column on Idle Iron 080112 HR 6208 Reefs Act S 1555 Rigs to Reef Act O. UPDATES TO CITY COUNCIL: (ITEMS 42 - 43) 42 12 -00593 Automated Meter Reading Project Update - August 2012 Attachments: Memorandum - Automated Meter Reading Project Update - August 2012.docx Presentation - AMR Project Update - August 2012 - -- Final -V3 43 12 -00611 2012 Parks, Recreation and Open Spaces Master Plan Update Attachments: Agenda Item - Parks Master Plan Presentation 8 -2012 Presentation - Parks Master Plan short 082112 P. 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. 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. Corpus Christi Page 16 Printed on 8/20/2012 City Council Meeting Agenda - Final August 21, 2012 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. Q. CITY MANAGER'S COMMENTS: Update on City Operations R. ADJOURNMENT Corpus Christi Page 17 Printed on 8/20/2012 Corpus Christi Meeting Minutes - Draft City Council 1201 Leopard St Corpus Christi, TX 78401 CCtexas.com Tuesday, August 14, 2012 12:00 PM Council Chambers A. Call meeting to order. Mayor Adame called the meeting to order. B. Invocation. The invocation was delivered by Reverend Greg Hackett, First United Methodist Church. C. Pledge of Allegiance. The Pledge of Allegiance was led by Council Member Chris Adler. D. Roll Call City Secretary Chapa verified that the necessary quorum of the Council and the necessary Charter Officers City Manager Ron Olson, City Attorney Carlos Valdez and City Secretary Armando Chapa were present to conduct the meeting. Present: 7 - Mayor Joe Adame,Council Member Chris Adler,Council Member Kelley AIIen,Council Member Larry Elizondo,Council Member Priscilla Leal,Council Member David Loeb, and Council Member Nelda Martinez Absent: 2 - Council Member John Marez, and Council Member Mark Scott E. Proclamations / Commendations 1 F. MINUTES: Certificate of Commendations to Youth Participants in the "Ramp It Up!" Workforce Solutions of the Coastal Bend Summer Youth Project 2012 Mayor Adame read and presented the Proclamation(s). 2 Approval of Meeting Minutes - July 31, 2012. A motion was made by Council Member Martinez, seconded by Council Member Loeb to approve the minutes as presented. G. BOARDS & COMMITTEE APPOINTMENTS: Corpus Christi Page 1 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 3 Advisory Committee on Community Pride Coastal Bend Council of Governments Commission on Children and Youth Human Relations Commission Leadership Committee for Senior Services Park and Recreation Advisory Committee The following reappointments /new appointments were made to the City's boards, commissions, and committees: Advisory Committee on Commuity Pride: Reappointed - Oscar Carmona and Tony Reyes; New Appointments - Frank Franklin, Paul Gottemoller, and Kristina Leal Coastal Bend Council of Governments: New Appointment - Tom Taglibue Commission on Children & Youth: New Appointments - Heather Butscher (Education) and Kesha Poncik (At Large) Human Relations Commission: New Appointment - Joel Mumphord Leadership Committee for Senior Services: Realignment - Billy Ray Sayles (Direct Service) and Ida Hobbs (Direct Service); New Appointments - Margaret Hawkins and Anne Lee Parks & Recreation Advisory Committee: Reappointed - Huxley Smith, Ron Wods, Dorian Ramirez and Rick Barrera; New Appointments - Carlos Valdez, Sr. Enactment No: I. CONSENT AGENDA: (ITEMS 4 - 6) Mayor Adame called for consideration of the Consent Agenda, Items 4 through 6. Mayor Adame asked for public comment. There were no comments. The items were approved by one vote: 4 Rescinding purchase approval of a software interface to Starlims and approving purchase for Intergraph Corporation Motion rescinding the approval to purchase an interface for the Laboratory Information Management System (LIMS) and (Leads from STARLIMS Corporation of Hollywood, Florida and awarding the purchase of an interface for the Laboratory Information Management System (LIMS) and (Leads from Intergraph Corporation, Chicago, Illinois for a total expenditure of $73,625. Funds are available through the Coverdell Forensic Science Improvement Grant program and Municipal Information Systems. The foregoing motion was passed and approved with the following vote: Aye: 7- Mayor Adame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Corpus Christi Page 2 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 Absent: 2 - Council Member Marez and Council Member Scott Abstained: 0 Enactment No: M2012 -151 5 Agreement to use reclaimed water supply for irrigation of the Coastal Bend Texas State Veteran's Cemetery Resolution authorizing the City Manager, or designee, to execute an agreement with the State of Texas Veteran's Land Board to supply effluent to irrigate the Coastal Bend Texas State Veteran's Cemetery. The foregoing resolution was passed and approved with the following vote: Aye: 7- MayorAdame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Absent: 2 - Council Member Marez and Council Member Scott Abstained: 0 Enactment No: 029586 6 Supplemental Agreement to determine responsibilities for the Billings & Clems parking lot improvements located on Park Road 22 Resolution authorizing the City Manager, or designee, to execute a Supplemental Agreement to the Master Multiple Use Agreement with the Texas Department of Transportation (TxDOT) for the Billings and Clems Parking Lot Improvements located within State right -of -way of Park Road 22 adjacent to the John F. Kennedy Memorial Causeway. The foregoing resolution was passed and approved with the following vote: Aye: 7- MayorAdame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Absent: 2 - Council Member Marez and Council Member Scott Abstained: 0 Enactment No: 029587 J. EXECUTIVE SESSION: (ITEMS 7 - 9) Mayor Adame read Executive Session Items 7, 8 and 9. Council Member Elizondo requested that Item No. 9 be discussed in open session and the council concurred. The council went into executive session. The council returned from executive session. 7 Executive session under Section 551.071 of the Texas Government Code for consultation with attorneys regarding permitting issues Corpus Christi Page 3 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 8 9 related to the City's TCEQ- issued Texas Pollutant Discharge Elimination System (TPDES) Municipal Separate Storm Sewer System (MS4) Permit Renewal, with possible discussion and action related thereto in open session. City Secretary Chapa read the following motion: Motion authorizing the City Manager or designee to execute a contract in the amount of $75,000 with Martin Rochelle of Lloyd Gosselink Rochelle & Townsend, P.C., to provide legal and other technical services related to the TCEQ- issued Texas Pollutant Discharge Elimination System (TPDES) Municipal Separate Storm Sewer System (MS4) Permit Renewal. The foregoing motion was passed and approved with the following vote: Aye: 7- MayorAdame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Absent: 2 - Council Member Marez and Council Member Scott Abstained: 0 Enactment No: M2012 -152 Executive session pursuant to Texas Government Code Section 551.071 to consult with attorneys regarding contemplated litigation related to the city wastewater treatment plants, with possible discussion and action in open session. City Secretary Chapa read the following motion: Motion to amend Motion 2011 -242 regarding legal services agreement with Lloyd Gosselink related to six proposed administrative orders from the U.S. Environmental Protection Agency related to the six City wastewater treatment plants, to authorize additional funding for consultant subcontracts needed to provide technical assistance at hourly rate not to exceed $300 per hour, plus expenses, subject to certification of funds. The foregoing motion was passed and approved with the following vote: Aye: 7- MayorAdame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Absent: 2 - Council Member Marez and Council Member Scott Abstained: 0 Enactment No: M2012 -153 Executive session pursuant to Section 551.087 of the Texas Government Code to deliberate regarding confidential commercial or financial information received from Schlitterbahn Waterpark a business that the City Council seeks to have locate, stay or expand within the City and with which the City is conducting economic development Corpus Christi Page 4 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 negotiations with possible discussion and action in open session. Wes Pierson, Assistant City Manager provided the Council with an update on the status of the Schlitterbahn Waterpark project. He addressed concerns regarding the delay of the park project and the impact on the incentive agreement for the development. Mr. Pierson stated that the incentive agreement required the developer to break ground on the project within nine (9) months of the effective date of the agreement. He stated that the date of the agreement is May 22, 2012 and that the nine months deadline date is February 22, 2013. In addition, after the groundbreaking, the developer is required to open and complete the park project within 24 months. He added that a March 2014 date is planned for the opening of the Schlitterbahn Park project. He stated that the delay has no impact on the incentive agreement and that the reason for the delay was due to the completion of the South Padre Island Schlitterbahn Park. K. PUBLIC HEARINGS: (ITEMS 10 - 11) Mayor Adame referred to Item No 10. Mark Van Vleck stated that the purpose of this change is to allow for the construction of an auto dealership. A motion was made by Council Member Elizondo, seconded by Council Member Martinez and passed to open the public hearing. There were no comments from the audience. A motion was made by Council Member Elizondo, seconded by Council Member Martinez and passed to close the public hearing. 10 Change of zoning from single family to general commercial located at 6210 South Padre Island Drive Case No. 0612 -01: CCLEL Investments, Inc.: A change of zoning from the "RS -6" Single - Family 6 District to the "CG -2" General Commercial District, resulting in a change of future land use from medium density residential to commercial. The property to be rezoned is a 2.30 -acre portion out of Lot 6, Section 13, Flour Bluff and Encinal Farm and Garden Tracts, located on the north side of South Padre Island Drive (SH 358) and east of Prince Drive. Planning Commission and Staff Recommendation (June 20, 2012): Approval of the change of zoning from the "RS -6" Single - Family 6 District to the "CG -2" General Commercial District. ORDINANCE Ordinance amending the Unified Development Code ( "UDC ") upon application by CCLEL Investments, Inc., on behalf of Leer Properties, Inc. ( "Owner"), by changing the UDC Zoning Map in reference to a 2.30 -acre portion out of Lot 6, Section 13, Flour Bluff and Encinal Farm and Garden Tracts from the "RS -6" Single - Family 6 District to the "CG -2" General Commercial District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing for penalties; providing for publication; and declaring an emergency. Corpus Christi Page 5 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 An emergency was declared and the foregoing ordinance was passed and approved with the following vote: Aye: 6 - Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Absent: 2 - Council Member Marez and Council Member Scott Abstained: 1 - MayorAdame Enactment No: 029588 11 Public Hearing on Fiscal Year 2013 Ad Valorem Tax rate MayorAdame referred to Item No. 11. Constance Sanchez, Director of Finance stated that they are proposing to keep the ad valorem tax rate the same for Fiscal Year 2012 -2013 as it was for Fiscal Year 2011 -2012 at $0.570557 per $100 valuation. A motion was made by Council Member Elizondo, seconded by Council Member Adler and passed to open the public hearing. There were no comments from the audience. A motion was made by Council Member Martinez, seocnded by Council Member Elizondo and passed to close the public hearing. At the end of the public hearing, Mayor Adame read the following statement, during the August 28, 2012 City Council meeting beginning at 12:00 pm at City Hall, the City Council will vote on the proposed tax rate. L. REGULAR AGENDA: (ITEM 12) Mayor Adame referred to Item No. 12. City Secretary Chapa stated that this item is ordering the General Election for the election of officers and 8 Bond Propositions, and stated that Oscar Martinez, Assistant City Manager is available to answer questions regarding the propositions. Council Member Leal made a motion to remove Leopard Street, from Crosstown Freeway to Palm Drive from Proposition No. 1 and add Ayers Street, from Gollihar to South Padre Island Drive, seconded by Council Member Allen. Discussion ensued regarding the estimated cost to add Ayers Street; the Yorktown and Chaparral project; the proposed Leopard Street project; and distribution of informational material to voters. After discussion, Council Member Allen withdrew his second to the motion. Council Member Loeb made a motion to alter the language on the savings from previous bond packages,and that the first project priority bes an additional lane and sidewalks to Ayers Street, seconded by Council Member Leal. A motion was made, seconded and passed to table the motion. Mr. Dan Biles, Director of Engineering discussed the Bond 2008 voter educational material regarding the Chaparral Street project. He identified the following design elements that could be removed from the project to reduce the project costs: Catenary Lighting - $1,330,000; Specialized Light and Signal Poles - $500,000; District Markers - $75,000; Concrete Roadway Pavers - $210,000; Concrete Pavers at Intersections only - $60,000; Concrete Pavers & Covers at Sidewalks - $630,000; Fixed and Removable Bollards - $110,000. He added that the enhancements total to approximately $2.9 million. Corpus Christi Page 6 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 A motion was made by Council Member Allen to move forward with Chaparral Street Improvement project under the Bond 2008 program in the amount of $3.5 million without the enhancements, seconded by Council Member Elizondo. Mayor Adame asked for comments from the audience on the motion. The following citizens spoke: Johnny French spoke in regards to the bond proposition ballot language; Carolyn Moon spoke in support of the Yorktown project, but not moving projects; Chad Magill spoke in support of the Chaparral Street project and read a Resolution prepared by the Downtown Management District board of directors; Brad Lomax spoke about the bond language; Rick Deyoe, Realtex Development Corporation stated they recently purchased the old Lichenstein building for mixed use development, distributed design drawings for the property, and spoke in support of the Chaparral Street improvements; John Kelley spoke about bond funding for the Chaparral Street project; Steve DeAses spoke in support of the Chaparral Street project; Carrie Robertson spoke in support of improvements in the downtown area. After further discussion, Assistant City Attorney Logan stated that the motion made by Council Member Allen, seconded by Council Member Elizondo regarding the Chaparral Street Improvement Project does not relate to the posted agenda item and, therefore a vote could not be not taken on this motion. Staff was directed to place an item on a future agenda to discuss and consider funding for the Chaparral Street Improvement project. Mayor Adame asked for comments from the audience on Item No. 12. Johnny French spoke about the bond propositions; John Kelley spoke about the bridge and funding; and Carolyn Moon spoke about the bond election package. 12 Ordinance ordering a general election for election of Mayor and eight Council Members and consideration of bond propositions Ordinance ordering a general election to be held on November 6, 2012, in the City of Corpus Christi for the election of Mayor and eight Council Members, and on the questions of authorizing bond issuances of the City supported by ad valorem taxes; providing for procedures for holding such election; providing for notice of election and publication thereof; providing for establishment of branch early polling places; designating polling place locations; authorizing a joint election with Nueces County; and a Runoff Election, if one is necessary; enacting provisions incident and relating to the subject and purpose of this ordinance; and declaring an emergency. An emergency was declared and the foregoing ordinance was passed and approved with the following vote: Aye: 7- Mayor Adame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Absent: 2 - Council Member Marez and Council Member Scott Abstained: 0 Enactment No: 029589 Corpus Christi Page 7 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 M. FIRST READING ORDINANCES: (ITEMS 13 - 17) 13 14 15 Second Reading Ordinance - Accepting and appropriating a federal grant to support joint City and County law enforcement efforts (First Reading - 8/14/12) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the U. S. Department of Justice, Bureau of Justice Assistance, in the amount of $169,575 for the FY 12 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Local Solicitation within the Police Department, 50% of the funds to be distributed to Nueces County under an established interlocal agreement and appropriating $169,575 in the No. 1061 Police Grants Fund. Mayor Adame asked for comments from the audeince on Item No. 13. There were no comments. The foregoing ordinance was passed and approved on first reading with the following vote: Aye: Absent: 6- Mayor Adame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal and Council Member Martinez 3 - Council Member Loeb, Council Member Marez and Council Member Scott Abstained: 0 Second Reading Ordinance - Accepting and appropriating a state grant to prevent auto burglary and theft (First Reading 8/14/12) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Automobile Burglary and Theft Prevention Authority (ABTPA) in the amount of $392,474 to continue the motor vehicle theft enforcement grant within the Police Department for Year 12, with a City match of $478,212, in -kind match of $14,019 in the No. 1020 Police General Fund, and program income match of $8,541 in the NO. 1061 Police Grants Fund for a total project cost of $893,246; and appropriating the $392,474 grant in the No. 1061 Police Grants Fund continue the motor vehicle theft enforcement grant in the Police Department. Mayor Adame asked for comments from the audience on Item No. 14. There were no comments. The foregoing ordinance was passed and approved with the following vote: Aye: 6- Mayor Adame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal and Council Member Martinez Absent: 3 - Council Member Loeb, Council Member Marez and Council Member Scott Abstained: 0 Second Reading Ordinance - Accepting and appropriating a State Corpus Christi Page 8 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 16 17 grant to assist with operations for border security (First Reading 8/14/12) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Ranger Division of the Texas Department of Public Safety in the amount of $155,000 for the FY2012 Local Border Security Program within the Police Department and appropriating $155,000 in the No. 1061 Police Grants Fund.. Mayor Adame asked for comments from the audience on Item No. 15. There were no comments. The foregoing ordinance was passed and approved on first reading with the following vote: Aye: Absent: 6- Mayor Adame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal and Council Member Martinez 3 - Council Member Loeb, Council Member Marez and Council Member Scott Abstained: 0 Second Reading Ordinance - Utility easement closure to develop property located north of State Highway 44 (First Reading 8/14/12) Ordinance abandoning and vacating a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94- square -foot portion of a 10- foot -wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision; and requiring the owner, Weatherford U.S., L.P., to comply with the specified conditions. Mayor Adame asked for comments from the audience on Item No. 16. There were no comments. The foregoing was passed and aprpoved on first reading with the following vote: Aye: 6 - Absent: 3 - Abstained: 0 Mayor Adame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal and Council Member Martinez Council Member Loeb, Council Member Marez and Council Member Scott Second Reading Ordinance - Receipt and transfer of funds from the Sessions Bequest to the Friends of the Museum (First Reading 8/14/12) Ordinance authorizing the City Manager to execute all documents necessary to accept disbursements from mineral interests from the Estate of L. Lloyd Sessions; appropriating distribution in the No. 1069 Museum Trust Fund and authorizing the transfer to the Friends of the Museum of Science and History for the benefit of the Museum. Mayor Adame asked for comments from the audience on Item No. 17. There were no comments. The foregoing ordinance was passed and approved on Corpus Christi Page 9 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 first reading with the following vote: Aye: 7- MayorAdame, Council Member Adler, Council Member Allen, Council Member Elizondo, Council Member Leal, Council Member Loeb and Council Member Martinez Absent: 2 - Council Member Marez and Council Member Scott Abstained: 0 N. FUTURE AGENDA ITEMS: (ITEMS 18 - 31) 18 19 MayorAdame referred to the Future Agenda section, Items 18 through 31. Mayor Adame stated that these items are for informational purposes only and that no action would be taken at this time. City Manager Olson stated that staff would provide a presentation on Items 28 through 31, and council requested a presentation on Item No. 18. Amendment to city /county health district agreement to combine two nurse practitioner positions into one position; and amending code of ordinances (Related items 2 - 3) Motion to approve the First Amendment to the Reformed Cooperative Agreement with Nueces County for operation of the Corpus Christi - Nueces County Public Health District in order to consolidate a nursing position under Pay Plan HTH and to authorize execution of the First Amendment by the City Manager. This Motion was recommended by Staff to the Consent Agenda. Ordinance amending the Code of Ordinances, Chapter 39, Article III Section 39 -303, Subsection (m), "Pay Plan HTH," to eliminate the Grade 58 position from the plan. This Emergency Ordinance was recommended by staff to the Consent Agenda. 20 Construction contract for parking, drainage, and ADA improvements to the Evelyn Price Park (Bond 2008 - Sports Field Improvements) Motion authorizing the City Manager, or designee, to execute a Construction Contract with Safenet, LLC. of Corpus Christi, Texas in the amount of $137,764.63 for the (Evelyn Price Park Improvements (Bond 2008 - Sports Field Improvements). This Motion was recommended by staff to the Consent Agenda. 21 Type A Grant to fund interest buy down and grant program to assist small businesses Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ( "Accion ") to provide grant amount up to $400,000 Corpus Christi Page 10 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 for the interest buy down and grant programs for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Accion Texas Small Business Incentives Agreement. This Resolution was recommended by staff to the Consent Agenda. 22 Type A Grant to fund Del Mar College small business owner education program Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Del Mar College ( "Del Mar ") to provide grant amount up to $120,000 for the FastTrac® Growth Venture program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Del Mar FastTrac® Small Business Incentives Agreement. This Resolution was recommended by staff to the Consent Agenda. 23 Type A Grant to fund 95 interns through the Del Mar College internship program Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Del Mar College ( "Del Mar") to provide grant amount up to $173,223 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business And Job Development Corporation to administer the Del Mar College Intern Program Small Business Incentives Agreement. This Resolution was recommended by staff to the Consent Agenda. 24 Type A grant to fund a program that provides market research and technical assistance to small businesses Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and the Corpus Christi Regional Economic Development Corporation ( "EDC") to provide grant amount up to $96,000 to initiate an Economic Gardening program to help small businesses in Corpus Christi and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the EDC Small Business Incentives Agreement. This Resolution was recommended by staff to the Consent Agenda. Corpus Christi Page 11 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 25 Type A Grant to fund assistance for small businesses through workshops and counseling Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Service Corps of Retired Executives (SCORE) Chapter 221 to provide grant up to $50,000 to assist small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the SCORE Chapter 221 Small Business Incentives Agreement. This Resolution was recommended by staff to the Consent Agenda. 26 Type A Grant to fund 105 interns through the TAMU -CC Internship Program Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Texas A &M University- Corpus Christi ( "TAMU -CC ") to provide grant amount up to $190,635 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the TAMU -CC Intern Program Small Business Incentives Agreement. This Resolution was recommended by staff to the Consent Agenda. 27 Management agreement with Corpus Christi Museum Joint Venture Motion authorizing the City Manager or his designee to execute a twenty four month agreement with Corpus Christi Museum Joint Venture (CCMJV) to operate and manage the Corpus Christi Museum of Science and History (Museum). This Motion was recommended by staff to the Consent Agenda. 28 Collective bargaining agreement with the Corpus Christi Firefighters' Association for wages, benefits and working conditions Motion authorizing the City Manager to enter into a collective bargaining agreement with the Corpus Christi Firefighters' Association for wages, benefits and working conditions. This Motion was recommended by staff to the Regular Agenda. 29 Authorization for the Issuance of Utility System Revenue Bonds (Related items 21 - 22) Corpus Christi Page 12 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 30 Motion authorizing the appointment of M. E. Allison, & Co., as Financial Advisor for one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000. This Motion was recommended by staff to the Regular Agenda. Ordinance authorizing the issuance of one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000, pursuant to the delegation provisions set forth herein; making provisions for the payment and security thereof of a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the forms, terms, conditions, and resolving other matters incident and related to the issuance, sale and delivery of each series of bonds; including the approval and distribution of one or more Official Statements pertaining thereto; authorizing the execution of one or more paying agent/registrar agreements, one or more escrow agreements, and one or more purchase contracts; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; establishing the City's intention to reimburse itself from the proceeds of any such series of bonds for the prior lawful expenditure of funds to construct various City improvements; delegating the authority to the Mayor and certain members of the City staff to execute certain documents relating to the sale of each series of bonds; and providing an effective date. This Emergency Ordinance was recommended by staff to the Regular Agenda. FUTURE PUBLIC HEARINGS: (ITEM 31) 31 Change of zoning from farm rural district to general commercial at 14801 Northwest Blvd. Case No. 0612 -02: Calallen GP, LLC: A change of zoning from the "FR" Farm Rural District to the "CG -2" General Commercial District, resulting in a change of future land use from commercial and medium density residential uses to commercial uses. The property to be rezoned is described as being a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park, located on the southeast corner of Northwest Boulevard (FM 624) and FM 1889. Planning Commission and Staff Recommendation (June 20, 2012): Denial of the applicant's request for the "CG -2" General Commercial District on 36.896 acres and, in lieu thereof, approval of the "CG -2" General Commercial District on Tract 1 (29.243 acres) and the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres). Corpus Christi Page 13 Printed on 8/16/2012 City Council Meeting Minutes - Draft August 14, 2012 ORDINANCE Ordinance amending the Unified Development Code ( "UDC ") upon application by Ca!alien GP, LLC, on behalf of Lois Lowman, Connie Diane Brown Polk Laing, Herman Bruce Lowman, NRIP, LLC, and Cloudcroft Land Ventures, Inc. ( "Owners "), by changing the UDC Zoning Map in reference to a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park from the "FR" Farm Rural District to the "CG -2" General Commercial District on Tract 1 (29.243 acres) and the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres); amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing for penalties; providing for publication; and declaring an emergency. This Emergency Ordinance was recommended by staff to Public Hearings. O. UPDATES TO CITY COUNCIL: (ITEM 32) 32 Presentation on Packery Channel Quarterly Monitoring for 2011 -2012 Mayor Adame referred to Item No. 32, Presentation on Packery Channel Quarterly Monitoring. Mr. Dan Biles, Director of Engineering introduced Deidre D. Williams, Coastal Research Scientist, Conrad Blucher Institute for Surveying and Science, Texas A &M University- Corpus Christi. Ms. Williams stated that the City assumed sponsorship of monitoring in 2008 under a contract with DNR to continue monitoring. She provided an update and discussed the following: Pre and Post Dredge Shoaling; location of Post Dredge Shoals; how the sand enters the channel; availability of sand in surrounding nearshore; inland channel segment and channel expansion; shoreline line; and the focus for the 2012 -2013 Packery Channel Monitoring Program. P. Public Comment Mayor Adame referred to Public Comment. The following citizens spoke: Vanessa Chapa spoke about the number of illegal parking citations issued in her residential area; Jim Klein spoke about Citizens United Group and consideration of a resolutionto overturn the decision. Q. CITY MANAGER'S COMMENTS: Update on City Operations There were no City Manager comments. R. ADJOURNMENT There being no further business to come before the council, Mayor Adame adjourned the meeting at 3:40 pm. Corpus Christi Page 14 Printed on 8/16/2012 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: TO: May 23, 2012 Ronald L. Olson, City Manager FROM: Annette Rodriguez, Director of Public Health An netter(a� cctexas. com 361- 826 -7203 Amending the Code of Ordinances, Chapter 39, Article III, Section 39 -303, subsection (m), "Pay Plan HTH," to eliminate the grade 58 position pay range from the plan. CAPTION: A. Motion to approve the First Amendment to the Reformed Cooperative Agreement with Nueces County for operation of the Corpus Christi - Nueces County Public Health District in order to consolidate a nursing position under Pay Plan HTH and to authorize execution of the First Amendment by the City Manager. B. Ordinance amending the code of ordinances, chapter 39, article III section 39 -303, subsection (m), "Pay Plan HTH," to eliminate the grade 58 position pay range from the plan. PURPOSE: This allows the Health District to combine two positions into one higher paying position comparable to current job market pay scale. BACKGROUND AND FINDINGS: This is necessary due to two existing nurse practitioner positions that were paying lower than the market and the Health District was unable to fill either of those positions, therefore the City of Corpus Christi and Nueces County mutually agree to amend Attachment "B" (entitled terms and conditions ") of the existing Agreement and associated attachments to the terms and conditions to include the revisions set out in this document ( "First Amendment "). These revisions combine the two positions into one higher paying position that we were able to fill at higher salary. This position is necessary for the continuity of care for the Health Department patients. ALTERNATIVES: Leave Health District Pay Plan as is OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council approval required to approve amending the code of ordinances EMERGENCY / NON - EMERGENCY: Non - emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: There is no fiscal impact for amending the code of ordinances. RECOMMENDATION: Staff recommends approve motion and amending code of ordinance LIST OF SUPPORTING DOCUMENTS: Ordinance ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 39, ARTICLE III, SECTION 39 -303, SUBSECTION (m), "PAY PLAN HTH," TO ELIMINATE THE GRADE 58 POSITION PAY RANGE FROM THE PLAN. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Code of Ordinances, Chapter 39, Article III, Section 39 -303, subsection (m), entitled "Pay Plan HTH," is revised by eliminating the Grade 58 position pay range from the pay plan, such position to be incorporated separately into the operating agreement governing the Corpus Christi - Nueces County Public Health District, and amending the subsection to read as follows: "Sec. 39 -303. Standard classifications, pay grades, and ranges. "(m) Pay Plan HTH. Pay Plan HTH will include positions in the Health District, excluding Animal Care Services and Vector Control. These positions may be designated as either exempt from overtime under the FLSA or as non - exempt and eligible for overtime under the FLSA. The pay grades and ranges for positions in Pay Plan HTH are as follows: HEALTH DISTRICT PAY PLAN* Pay Plan HTH Health District H10 -49 Non - Exempt (FLSA Overtime Eligible) H50 -99 Exempt (FLSA Overtime Ineligible) Effective 5/11/09 IyI 1/ /tr/I fY/ ,£ /if flf ?"'` r{^ .f'J/ f / /fY:f J� P� fY? F f f f%V f / / / /'llv `` /f /' /f f fyI £ (f f l '/'..'1` ✓`r /fill/ / %l %`. H11 $17,066 $22,743 $28,420 H12 18,432 23,936 29,440 H13 19,998 25,970 31,942 H14 21,797 28,307 34,817 H15 23,867 30,995 38,124 H16 26,254 34,096 41,938 H17 29,011 37,675 46,340 0003_2_Ordinance - Health District Pay Plan Amdmt Page 1 of 3 H18 31,728 41,583 51,438 H52 28,144 38,527 48,909 H53 30,536 41,802 53,066 H54 33,286 45,565 57,844 H55 36,448 49,894 63,340 H56 40,093 54,853 69,613 H57 44,305 60,648 76,991 H58 '19,177 6 0 85-4 6 Paid as agreed Paid as agreed Paid as agreed *This pay plan excludes positions in Animal Care Services and Vector Control." 0003_2_Ordinance - Health District Pay Plan Amdmt Page 2 of 3 The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal The foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor 0003_2_Ordinance - Health District Pay Plan Amdmt Page 3 of 3 FIRST AMENDMENT TO THE REFORMED COOPERATIVE AGREEMENT TO OPERATE A PUBLIC HEALTH DISTRICT WHEREAS, the City of Corpus Christi ( "City ") and Nueces County ( "County ") previously entered into an agreement ( "Agreement ") to cooperatively operate a public health district ( "Health District ") for the benefit of both parties; and WHEREAS, the City and County mutually desire to amend Attachment "B" (entitled "Terms and Conditions ") of the existing Agreement and associated attachments to the Terms and Conditions to include the revisions set out in this document ( "First Amendment "). Section 1. The language contained in the preamble above is incorporated by reference in this section. Section 2. Part "A" of the Terms and Conditions of the Agreement is amended by adding new subpart "8" to read as follows: "8. The County shall eliminate the Nurse Practitioner position, classified as a Grade H57 position, from Pay Plan HTH. The former Grade H57 position will be consolidated with the existing Senior Nurse Practitioner position in Grade H58 of Pay Plan HTH. Grade H58 Senior Nurse Practitioner position only will be compensated as set out in part G of these Terms and Conditions." Section 3. Part "G" of the Terms and Conditions of the Agreement is amended by revising the heading to read as follows: "G. THE CITY AND COUNTY SHALL SHARE IN FUNDING SALARY AND BENEFITS OF THE DIRECTOR AND ASSISTANT DIRECTOR OF PUBLIC HEALTH ADMINSTRATION POSITIONS AND THE SENIOR NURSE PRACTITIONER POSITION AT THE PERCENTAGE OF 60% CITY AND 40% COUNTY. THE DIRECTOR SHALL BE HIRED BY AND REPORT TO THE CITY MANAGER AND COUNTY JUDGE. THE ASSISTANT DIRECTOR AND THE SENIOR NURSE PRACTITIONER SHALL BE HIRED BY THE DIRECTOR WITH THE CONCURRENCE OF THE CITY MANAGER AND THE COUNTY JUDGE. THE ASSISTANT DIRECTOR AND SENIOR NURSE PRACTITIONER SHALL REPORT TO THE DIRECTOR. (MOU Item 7) Section 4. Part "G" of the Terms and Conditions of the Agreement is amended by adding new subpart "7" to read as follows: "7. The Senior Nurse Practitioner position shall remain in Pay Plan HTH as a Grade H58 and shall be compensated as follows: $110,000 annual salary and benefits. The County shall reimburse the City for 40% of the salary and benefits. 0003_3_Agreement - Health District Agmt Amdmtl Page 1 of 3 The City shall prepare an invoice detailing the salary and benefit costs by pay period and show the 40% amount owed to the City by the County. This invoice shall be sent to the County monthly." Section 5. Attachment "1" of the Terms and Conditions of the Agreement, entitled "Health District Job Title and Pay Grade Assignment," is amended by deleting the reference on page 4 of the attachment to the "Nurse Practitioner — County (1)" and all associated line -item information, as shown in Exhibit "1" of this First Amendment, which exhibit is attached to and incorporated in this amendment by reference. Pursuant to the foregoing, the parties mutually agree that the revised Attachment "1" of the Terms and Conditions of the Agreement, as set out in Exhibit "1" of this First Amendment, replaces the former Attachment "1" of the Terms and Conditions of the Agreement upon final approval of this First Amendment unless expressly stated otherwise. Section 6. Attachment "2" of the Terms and Conditions, entitled "Health District Pay Plan for Combined City /County Positions," is amended by modifying the low, mid - point, and maximum pay grade range amounts to reflect that the Grade H58 position is to be compensated in accordance with the provisions included in part "G" of the Terms and Conditions to the Agreement, to be styled "Compensation Subject to Terms and Conditions of Public Health District Cooperative Agreement." Section 7. The City shall submit an amended pay plan ordinance incorporating the changes to the Grade H58 position in Pay Plan HTH as set out in this First Amendment, subject to final approval by the City Council. Section 8. This First Amendment is made effective upon final approval of the parties' governing bodies to the execution of this document by the parties' representatives. (EXECUTION PAGE FOLLOWS) 0003_3_Agreement - Health District Agmt Amdmtl Page 2 of 3 Executed this day of , 2012 ATTEST: NUECES COUNTY, TEXAS Diane T. Barrera Samuel L. Neal, Jr. County Clerk County Judge APPROVED as to form: Laura Garza - Jimenez County Attorney ATTEST: CITY OF CORPUS CHRISTI, TEXAS Armando Chapa Ronald L. Olson City Secretary City Manager 0003_3_Agreement - Health District Agmt Amdmtl Page 3 of 3 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his /her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: August 21, 2012 Agenda Item: Motion to approve the First Amendment to the Reformed Cooperative Agreement with Nueces County for operation of the Corpus Christi - Nueces County Public Health District in order to consolidate a nursing position under Pay Plan HTH and to authorize execution of the First Amendment by the City Manager. Amount Required: $ 0 Fund Name Account No. Fund No. Org. No. Project No. Amount Total $ ® Certification Not Required Director of Financial Services Date: AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: TO: May 23, 2012 Ronald L. Olson, City Manager FROM: Annette Rodriguez, Director of Public Health AnnetteR @cctexas.com 361- 826 -7203 Amending the Code of Ordinances, Chapter 39, Article III, Section 39 -303, subsection (m), "Pay Plan HTH," to eliminate the grade 58 position from the plan CAPTION: A. Motion to approve the First Amendment to the Reformed Cooperative Agreement with Nueces County for operation of the Corpus Christi - Nueces County Public Health District in order to consolidate a nursing position under Pay Plan HTH and to authorize execution of the First Amendment by the City Manager. B. Ordinance amending the code of ordinances, chapter 39, article III section 39 -303, subsection (m), "Pay Plan HTH," to eliminate the grade 58 position from the plan PURPOSE: This allows the Health District to combine two positions into one higher paying position comparable to current job market pay scale. BACKGROUND AND FINDINGS: The City of Corpus Christi and Nueces County mutually desire to amend Attachment "B" (entitled terms and conditions ") of the existing Agreement and associated attachments to the terms and conditions to include the revisions set out in this document ( "First Amendment "). ALTERNATIVES: Leave Health District Pay Plan as is OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council approval required to approve amending the code of ordinances EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: There is no fiscal impact for amending the code of ordinances. RECOMMENDATION: Staff recommends approve motion and amending code of ordinance LIST OF SUPPORTING DOCUMENTS: Ordinance ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 39, ARTICLE III, SECTION 39 -303, SUBSECTION (m), "PAY PLAN HTH," TO ELIMINATE THE GRADE 58 POSITION FROM THE PLAN. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Code of Ordinances, Chapter 39, Article 111, Section 39 -303, subsection (m), entitled "Pay Plan HTH," is revised by eliminating the Grade 58 position pay range from the pay plan, such position to be incorporated separately into the operating agreement governing the Corpus Christ - Nueces County Public Health District, and amending the subsection to read as follows: "Sec. 39 -303. Standard classifications, pay grades, and ranges. "(m) Pay Plan HTH. Pay Plan HTH will include positions in the Health District, excluding Animal Care Services and Vector Control. These positions may be designated as either exempt from overtime under the FLSA or as non - exempt and eligible for overtime under the FLSA. The pay grades and ranges for positions in Pay Plan HTH are as follows: HEALTH DISTRICT PAY PLAN* Pay Plan HTH Health District H10 -49 Non - Exempt (FLSA Overtime Eligible) H50 -99 Exempt (FLSA Overtime Ineligible) Effective 5/11/09 om- ve Id h 4.., i� ����- 4., H11 $ 17,066 $22,743 $28,420 H12 18,432 23,936 29,440 1-113 19,998 25,970 31,942 H14 21,797 28,307 34,817 H15 23,867 30,995 38,124 H16 26,254 34,096 41,938 H17 29,011 37,675 46,340 1-118 31,728 41,583 51,438 EHord360 Health District Pay Plan Amdmt Page 1 of 3 H52 28,144 38,527 48,909 H53 30,536 41,802 53,066 • H54 33,286 45,565 57,844 H55 36,448. 49,894 63,340 H56 40,093 54,853 69,613 H57 44,305 60,648 76,991 H58 49,177 67,320 Paid as agreed 85,461 Paid as agreed Paid as agreed *This pay plan excludes positions in Animal Care Services and Vector Control." PHord360 Health District Pay Plan Amdmt Page 2 of 3 The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal The foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor EHord360 Health District Pay Plan Amdmt Page 3 of 3 • • X LU Attachment "1" Health District Job Title and Pay Grade Assignment Q Q al U Cd ni 0 = r„, ) 2 x T.". N o N.: 2 ' ° O N o0 "+ N N C QS a N N aT Y .0 Z' E E 0 L C L none a 0.2 y Z ro o is Q`>, `� ° g U � U x x I. 0) o'o o E U 0 oo Q E x x N x M x — x Q ��: c 'x a Z a 2 x i a, x a., Health Dist. Staff Assistant Health District Data Entry Clerk 0 .� � a� rat � o-- Health Information Aide oo � O .� _ .--e — N .— ,--+ M _ — — r' M ICity / County Current Job Title NON - EXEMPT POSITIONS Public Health Inspector I (1) Sanitation Inspector Envir & Cons (1) Public Health Inspector II (1) Sanitarian II (1) Sanitarian — County (1) NON -EXEMPT POSITIONS Staff Assistant (14) Clerk — County (1) Data Entry CIerk — County (I) Sr Staff Assistant (1) Clinical Assistant — County (1) Sr Clerk — County (4) Community Service Aide (10) Clinic Aide — County (3) 1 Intermediate Clerk — County (2) Laboratory Assistant — County (I) ,Health Information Aide (1) 1 - 4, Health District Agmt Amdmtl Att B -1 v02 20120416 Attachment "1" Health District Job Title and Pay Grade Assignment 2 - 4, Health District Agmt Amdmtl Att B -1 v02 20120416 \wt 0 \ •§ \ ƒ /\§ Co< / / \ ƒ / \ g / \ / / / / / g ; \ §a2 jd \ /&\ 1 New Pay -ade / / / © 2 © 2 2 ± $ $ z ± \ / / Q o 0 ./ - / k % 2 2 / ƒ • \ ƒ Title th Di 2 2 k U / ,..._,g ƒ / j / Q TA 3 • 0 0 \ 0 a) ƒ > m1 ? % a) / ƒ / ƒ I / 3 ,§ 2 .rrent Grade m y m y / a / a 2 ON a 2 « \ 01 / a w G M w L , Senior Account Clerk (2) Community Service Aide (1) Laboratory Technician I (1) Laboratory Technician — County (I) Lactation Peer Counselor (1) Management Aide (1) Sr Admin. Clerk — County (2) Building Maintenance Technician Dental Assistant — County (1) Executive Assistant (1) Immunizations Info Specialist (2) Information Specialist - County(1) LVN I (4) LVN — County (3) LVN II — County (1) 2 - 4, Health District Agmt Amdmtl Att B -1 v02 20120416 Attachment "1" Health District Job Title and Pay Grade Assignment Salary Cost Impact none 0 0 = 0 0 Q 1 � � 1 \% v Ei { none none Z 0 0 S 0 0 0 0 0 0 0 0 / 0 0 Proposed New Pay Grade H17 N « N $ [ : H52 H53 2 $ 7 » / m $ ƒ $ Proposed Title Specific to Health District Health Dist. Education Specialist Community Health Service Officer Public Health Preparedness Specialist . � Health Dist. Nutritionist Health Dist. Accountant Public Health Techn. II Health Dist. Microbiologist Public Health Nurse Health Dist. Program Manager Pubic Health Manager . Current Grade 917 » $ w( . � 1 w G m ,--• a ® % # G # G r G m 2 e m City / County Current Job Title Health Education Specialist (1) Community Service Officer Public Health Preparedness Specialist (1) M N 1Nutritionist (2) Accountant (1) Public Health Technician — County (1) Disease Intervention Specialist — County (1) Microbiologist (3) Public Health Nurse (4) Public Health Nurse II - County (2) Program Manager (1) 1HIV /STD Program Manager (1) I 1 Senior Public Health Nurse (4) Infectious Disease Coordinator (1) 3 - 4, Health District Agmt Amdmtl Att B-1 v02 20120416 Attachment "1" Health District Job Title and Pay Grade Assignment Salary Cost Impact a) 0 0) 0 0) 0 N 00 Public Health Administrator Sr Nurse Practitioner Current Grade '.O N 00 City / County Current Job Title Public Health Administrator (3) 0 0 Sr Nurse Practitioner (1) 4 - 4, Health District Agmt Amdmtl Att B-1 v02 20120416 FIRST AMENDMENT TO THE REFORMED COOPERATIVE AGREEMENT TO OPERATE A PUBLIC HEALTH DISTRICT WHEREAS, the City of Corpus Christi ( "City ") and Nueces County ( "County ") previously entered into an agreement ( "Agreement ") to cooperatively operate a public health district ( "Health District ") for the benefit of both parties; and WHEREAS, the City and County mutually desire to amend Attachment "B" (entitled "Terms and Conditions ") of the existing Agreement and associated attachments to the Terms and Conditions to include the revisions set out in this document ( "First Amendment "). Section 1. The language contained in the preamble above is incorporated by reference in this section. Section 2. Part "A" of the Terms and Conditions of the Agreement is amended by adding new subpart "8" to read as follows: "8. The County shall eliminate the Nurse Practitioner position, classified as a Grade H57 position, from Pay Plan HTH. The former Grade H57 position will be consolidated with the existing Senior Nurse Practitioner position in Grade H58 of Pay Plan HTH. Grade H58 Senior Nurse Practitioner position only will be compensated as set out in part G of these Terms and Conditions." Section 3. Part "G" of the Terms and Conditions of the Agreement is amended by revising the heading to read as follows: "G. THE CITY AND COUNTY SHALL SHARE IN FUNDING SALARY AND BENEFITS OF THE DIRECTOR AND ASSISTANT DIRECTOR OF PUBLIC HEALTH ADMINSTRATION POSITIONS AND THE SENIOR NURSE PRACTITIONER POSITION AT THE PERCENTAGE OF 60% CITY AND 40% COUNTY. THE DIRECTOR SHALL BE HIRED BY AND REPORT TO THE CITY MANAGER AND COUNTY JUDGE. THE ASSISTANT DIRECTOR AND THE SENIOR NURSE PRACTITIONER SHALL BE HIRED BY THE DIRECTOR WITH THE CONCURRENCE OF THE CITY MANAGER AND THE COUNTY JUDGE. THE ASSISTANT DIRECTOR AND SENIOR NURSE PRACTITIONER SHALL REPORT TO THE DIRECTOR. (MOU Item 7) Section 4. Part "G" of the Terms and Conditions of the Agreement is amended by adding new subpart "7" to read as follows: "7. The Senior Nurse Practitioner position shall remain in Pay Plan HTH as a Grade H58 and shall be compensated as follows: $110,000 annual salary and benefits. The County shall reimburse the City for 40% of the salary and benefits. 0004_4_Health District Agmt Amdmtl vFinal 20120425 Page 1 of 3 The City shall prepare an invoice detailing the salary and benefit costs by pay period and show the 40% amount owed to the City by the County. This invoice shall be sent to the County monthly." Section 5. Attachment "1" of the Terms and Conditions of the Agreement, entitled "Health District Job Title and Pay Grade Assignment," is amended by deleting the reference on page 4 of the attachment to the "Nurse Practitioner — County (1)" and all associated line -item information, as shown in Exhibit "1" of this First Amendment, which exhibit is attached to and incorporated in this amendment by reference. Pursuant to the foregoing, the parties mutually agree that the revised Attachment "1" of the Terms and Conditions of the Agreement, as set out in Exhibit "1" of this First Amendment, replaces the former Attachment "1" of the Terms and Conditions of the Agreement upon final approval of this First Amendment unless expressly stated otherwise. Section 6. Attachment "2" of the Terms and Conditions, entitled "Health District Pay Plan for Combined City /County Positions," is amended by modifying the low, mid - point, and maximum pay grade range amounts to reflect that the Grade H58 position is to be compensated in accordance with the provisions included in part "G" of the Terms and Conditions to the Agreement, to be styled "Compensation Subject to Terms and Conditions of Public Health District Cooperative Agreement." Section 7. The City shall submit an amended pay plan ordinance incorporating the changes to the Grade H58 position in Pay Plan HTH as set out in this First Amendment, subject to final approval by the City Council. Section 8. This First Amendment is made effective upon final approval of the parties' governing bodies to the execution of this document by the parties' representatives. (EXECUTION PAGE FOLLOWS) 0004_4_Health District Agmt Amdmtl vFinal 20120425 Page 2 of 3 Executed this day of , 2012 ATTEST: NUECES COUNTY, TEXAS Diane T. Barrera Samuel L. Neal, Jr. County Clerk County Judge APPROVED as to form: Laura Garza - Jimenez County Attorney ATTEST: CITY OF CORPUS CHRISTI, TEXAS Armando Chapa Ronald L. Olson City Secretary City Manager 0004_4_Health District Agmt Amdmtl vFinal 20120425 Page 3 of 3 AGENDA MEMORANDUM for the City Council Meeting of August 21, 2012 DATE: August 20, 2012 TO: Ronald L. Olson, City Manager FROM: Daniel Biles, P.E., Director of Engineering Services danb @cctexas.com; (361) 826 -3464 Michael Morris, Director of Parks & Recreation Services mmorris @cctexas.com; (361) 826 -3464 Approval of Construction Contract for Evelyn Price Park Improvements (Bond 2008) CAPTION: Motion authorizing the City Manager, or designee, to execute a Construction Contract with Safenet, LLC. of Corpus Christi, Texas in the amount of $137,764.63 for the Evelyn Price Park Improvements for the base bid. (Bond 2008 — Sports Field Improvements). PURPOSE: To execute a construction contract for the Evelyn Price Park Improvements. BACKGROUND AND FINDINGS: This project consists of the rehabilitation of portions of the existing parking lot, sidewalks, and drainage ditches at Evelyn Price Park. The project includes the removal and replacement of approximately 2,221 square yards Hot Mix Asphaltic Concrete (HMAC) parking area, associated ADA compliant pedestrian infrastructure, and installation of drainage culverts. This project is a Base Bid only. There are no Additive Alternates. CA Program Graic, t Legistar5Packet995 _ City Council _8_21_2012 \0005_1— Memo - Evelyn Price Park.docx On June 27, 2012, the city received proposals from five (5) bidders and their bids are as follows: Contractor Base Bid Safenet Services, LLC. Corpus Christi, Texas $137 764.63 Lougistics, LLC. San Antonio, Texas $163 522.62 Garrett Construction, Co. Ingleside, Texas $177 300.00 J. Carroll Weaver, Inc. Sinton, Texas $200 061.40 Barcom Construction, Inc. Corpus Christi, Texas $293 412.81 ALTERNATIVES: 1. Award construction contract as recommended. 2. Don't award construction contract. OTHER CONSIDERATIONS: This project was approved by the voters in the November 2008 bond election under the parent project, Sports Field Lighting and Other Improvements — City Wide) CONFORMITY TO CITY POLICY: Conforms to statutes regarding bid process; Bond Issue 2008; FY2012 -2013 Capital Budget. EMERGENCY / NON - EMERGENCY: Not Applicable DEPARTMENTAL CLEARANCES: Parks & Recreation G: \Prog am FilesvGranic,svLegistars \Packet \995_City Council_8_21_2012 \0005_ 1 _ Memo - Evelyn Price Park.docx FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year: 2012- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $1,626,800.00 $1,373,200.00 $0.00 $3,000,000.00 Encumbered / Expended Amount $1,626,800.00 $1,626,800.00 This item $137,764.63 $137,764.63 Future Expenditures $51,312.04 $51,312.04 BALANCE 0.00 $1,184,123.33 $1,184,123.33 Fund(s): Parks & Recreation CIP Comments: This project falls under the parent project, Sports Field Lighting and Other Improvements — City Wide (bond 2008), CIP PR 07. RECOMMENDATION: City staff recommends approval of a construction contract with Safenet Services, LLC. of Corpus Christi, Texas in the amount of $137,764.63 for the Evelyn Price Park Improvements. The construction contract completion time is 90 calendar days. The estimated project completion timeframe is January / February 2013. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map G: \Prog am FilesvGranic,svLegistars \Packet \995_City Council_8_21_2012 \0005_ 1 _ Memo - Evelyn Price Park.docx PROJECT BUDGET Evelyn Price Park Improvements - Bond 2008 Project No. E11128 August 21, 2012 FUNDS AVAILABLE: Parks & Recreation Capital Improvement Budget (Bond 2008) $ 3,000,000.00 TOTAL AVAILABLE. $ 3,000,000.00 FUNDS REQUIRED: Construction (Safenet Services, LLC.) $ 137,764.63 Contingencies 10% $ 13,776.46 Consultant Fees: Consultant Design (RVE, Inc.)* $ 24,470.00 Testing Agreement (Rock Engineering & Testing Laboratory) (Geotechnical $ 1,700.00 Inspection) ** Reimbursements: Contract Administration (Contract Preparation /Award /Admin) $ 3,788.53 Engineering Services (Project Mgt/Constr Mgt/Traffic Mgt) $ 4,821.76 Finance Reimbursements $ 2,066.47 Misc. (Printing, Advertising, etc.) $ 688.82 TOTAL $ 189,076.67 Additional Projects Completed under this Bond Program Line Item $ 1,626,800.00 Estimated Project Balance $ 1,184,123.33 * Consultant Contract awarded administratively January 20, 2012. ** Testing Agreement awarded administratively February 15, 2012. \Mproject \councilexhibits \exhE1 1 1 28.dwg RIVER _ UECES B'.A lW AGNES GA �.► • PROJECT SITE Evelyn Price Park FM 2444 M.2DRE LOCATION MAP NOT TO SCALE PROJECT #E11128 Evelyn Price Park Improvements CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21 2012 DATE: July 26, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Mike Culbertson (361) 882 -7448 mculbertson@ccredc.com Type A Grant for Del Mar College FastTrac® Growth Venture Program for Fiscal Year 2013 CAPTION: Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Del Mar College ( "Del Mar") to provide grant amount up to $120,000 for the FastTrac® Growth Venture program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Del Mar FastTrac® Small Business Incentives Agreement. PURPOSE: Approve a Type A Grant for Del Mar College FastTrac® Venture Growth Program for Fiscal Year 2013 BACKGROUND AND FINDINGS: FastTrac® Growth Venture TM is a ten week, thirty hour, interactive, participatory program designed to help the astute business owner identify where the business is, critically analyze and evaluate current business operations to determine any `gaps', `problems' or `issues', develop goals and strategies to resolve those problems, and finally devise an effective plan to stop working in their business' and begin `working on their business'. During the period, 2008 — 2011, the Business Resource Center at Del Mar College has worked with a total of 30 business owners who completed the FastTrac® Growth Venture TM program. These businesses created or retained over 28 jobs. Some have grown and flourished, some have survived and some have had issues related to the economy, causing them to restructure their operations. The FastTrac® Venture program has been funded since 2008. ALTERNATIVES: There isn't any other program that design to educate the small business owner in a comprehensive way. OTHER CONSIDERATIONS: By helping small businesses the City is increasing the economic development and growing future jobs. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and helping small businesses thrive in Corpus Christi. EMERGENCY / NON- EMERGENCY: NON - EMERGENCY DEPARTMENTAL CLEARANCES: FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 667,358 667,358 Encumbered / Expended Amount This item 120,000 120,000 BALANCE 547,358 547,358 Fund(s): Type A Fund Comments: RECOMMENDATION: Staff recommends that the City Council authorize the City Manager to enter into a one year Type A agreement LIST OF SUPPORTING DOCUMENTS: Certification of Funds Small Business Incentive Agreement Del Mar College FastTrac® Business Support Agreement Page 1 of 2 RESOLUTION Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Del Mar College ( "Del Mar ") to provide grant amount up to $120,000 for the FastTrac® Growth Venture program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Del Mar FastTrac® Small Business Incentives Agreement. WHEREAS, the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from Del Mar for the FastTrac® Growth Venture program for small businesses within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentives agreement for the FastTrac® Growth Venture program for small businesses between the Type A Corporation and Del Mar; WHEREAS, there is a need for a business incentives project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentives agreement for the FastTrac® Growth Venture program for small businesses between the Type A Corporation and Del Mar. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentives agreement for the creation and retention of jobs between the Type A Corporation and Del Mar that provides for the FastTrac® Growth Venture program for small businesses within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentives agreement with Del Mar, which is attached to this resolution as Exhibit B. This resolution takes effect upon City Council approval on this the day of , 2012. 0006_2_RESOLUTION Del Mar Fastrac Business Incentive Agreement 7 -11 -12 Page 2of2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kelley Allen Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott 0006_2_RESOLUTION Del Mar Fastrac Business Incentive Agreement 7 -11 -12 SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND DEL MAR COLLEGE FOR THE FASTTRAC GROWTH VENTURE PROGRAM This Small Businesses Incentive Agreement ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Del Mar College, a Texas junior college district ("Del Mar"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A Guidelines"), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, Section 501.073 of The Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, Del Mar is a Texas institution of higher education; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to Del Mar, through this contract with Del Mar, to be used by Del Mar for the FastTract) Growth Venture'm Program, which will result in creation of at least 12 new full-time permanent jobs in the City of Corpus Christi. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and Del Mar agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is from August 1, 2012, through December 31, 201 Page 1 of 8 SMALL BUSINESS INCENTIVE AGREEMENT — Del Mar FastTrac 07 12 12 3. Grant. The Corporation will fund up to 24 $5,000 grants to be awarded to twelve successful participants in Del Mar's Fast Trace Growth VentureTM. Fast Trace) Growth Venture° is an intensive ten week, interactive course that targets existing, successful small business owners with a desire to grow their business. a. In order to receive an initial $5,000 grant, prior to June 30, 2013, the successful participants must: (1) Complete the course. (2) Retain all of their existing jobs. (3) Create at least one new job b. In order to receive a second $5,000 grant, the successful participants must retain at least one new job for a minimum of six months, while retaining all of their existing jobs. 4. Job Creation/Training Qualification. a. In order to count as a created job under this Agreement, the job must pay wages at least as high as the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. In order to qualify for funds to provide job training under this Agreement, Del Mar agrees to create new jobs that pay wages at least as high as the wages required by Section 501.162 of the Act, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. c. A "job" is defined in the Type A Guidelines as a full-time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. d. Del Mar agrees to confirm and document to the Corporation that the minimum number of jobs created as a result of funding provided by this Agreement is maintained throughout the term by the Business. e. Del Mar agrees to provide Corporation with a sworn certificate by authorized representative of each business assisted under this Agreement certifying the number of full-time permanent employees employed by the business. f. Del Mar shall ensure that the Corporation is allowed reasonable access to personnel records of the businesses assisted under this Agreement. 5. Warranties. Del Mar warrants and represents to Corporation the following: a. Del Mar is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas, b. Del Mar has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. Page 2 of 8 SMALL BUSINESS INCENTIVE AGREEMENT Del Mar Fasarac 07 12 12 c, Del Mar has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid, during the term of this Agreement. d. Del Mar has received a copy of the Act, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. The parties executing this Agreement on behalf of Del Mar are duly authorized to execute this Agreement on behalf of Del Mar. f. Del Mar does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, Del Mar is convicted of a violation under §U.S.C. Section 1324a(f), Del Mar shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date Del Mar has been notified of the violation. 6. Compliance with Laws. Del Mar shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 7. Non-Discrimination, Del Mar covenants and agrees that Del Mar will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 8. Force Majeure. If the Corporation or Del Mar are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or Del Mar are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 9. Assignment. Del Mar may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 10. Indemnity. Del Mar covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents (lndemniteee) against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with Del Mar activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. De! Mar must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges Page 3 of 8 SMALL BUSINESS INCENTIVE AGREEMENT Del Mar FastTrac 07 12 12 of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 11. Events of Default by Del Mar. The following events constitute a default of this Agreement by Del Mar: a. The Corporation or City determines that any representation or warranty on behalf of Del Mar contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; b. Any judgment is assessed against Del Mar or any attachment or other levy against the property of Del Mar with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. Del Mar makes an assignment for the benefit of creditors. d. Del Mar files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. e. If taxes owed by Del Mar become delinquent, and Del Mar fails to timely and properly follow the legal procedures for protest or contest. f. Del Mar changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. 12. Notice of Default. Should the Corporation or City determine that Del Mar is in default according to the terms of this Agreement, the Corporation or City shall notify Del Mar in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for Del Mar to cure the event of default. 13. Results of Uncured Default by Del Mar. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of Del Mar, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. a. Del Mar shall immediately repay all funds paid by Corporation to them under this Agreement. b. Del Mar shall pay Corporation reasonable attorney fees and costs of court to co ect amounts due to Corporation if not immediately repaid upon demand from the Corporation. c. Upon payment by Del Mar of all sums due, the Corporation and Det ar shall have no further obligations to one another under this Agreement. d. Neither the City, the Corporation, nor Del Mar may be held liable for any consequential damages. Page 4 of 8 SMALL BUSINESS INCENTIVE AGREEMENT -- Del Mar FastTrac 07 12 12 14. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of Del Mar's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time Del Mar is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 15. Del Mar specifically agrees that Corporation shall only be liable to Del Mar for the actual amount of the money grants to be conveyed to Del Mar, and shall not be liable to Del Mar for any actual or consequential damages, direct or indirect, interest, attomey fees, or cost of court for any act of default by Corporation under the terms of this Agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from Del Mar to be accompanied by all necessary supporting documentation. 16. The parties mutually agree and understand that funding under this Agreement is subject to annual appropriations by the City Council; that each fiscal year's funding must be included in the budget for that year; and the funding is not effective until approved by the City Council. 17. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: Page 5 of 8 SMALL BUSINESS INCENTIVE AGREEMENT — Der Mar FastTrac 07 12 12 Del Mar College: Del Mar College Small Business Development Center 101 Baldwin, CED-146 Corpus Christi, TX 78404-3897 Attn: Director, SBDC Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 18. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ("Corporation Guidelines"), as amended, are incorporated into this Agreement. 19. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign Agreements on behalf of each party. 20. Relationship of Parties. In performing this Agreement, both the Corporation and Del Mar will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 21. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 22. Severabillty. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or Page 6 of 8 SMALL BUSINESS INCENTIVE AGREEMENT — Del Mar FastTrac 07 12 12 circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 23. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 24. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and Del Mar. Any prior Agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 25. Survival of terms of Agreement and obligations of parties. The terms of this Agreement and the obligation of the parties relating to Section 14.a and b shall survive the termination of this Agreement. Corpus Christi Business & Job Development Corporation By: Date: Attest: By: Eloy Salazar President Armando Chapa Assistant Secretary Del Mar College By: Date: Dr. frk Escamilla, Ph.D Pre ident Page 7 of 8 SMALL BUSINESS INCENTIVE AGREEMENT Del Mar FastTrac 07 12 12 THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on(l.� , 2012, by Dr. Mark Escamilla, PhD, for Del Mar College, a political subdivision of the State of Texas, on behalf of the colle +e district. No ary Public State of Texas A- . DELIA 0 PEREZ Notary Fuh c STATE OF TEXAS My Comm Exp •2-'G-2:)14 No Y iYvv r v -ti Page 8 of 8 MALL BUSINESS INCENTIVE AGREEMENT -- Del Mar FastTrac 07 12 12 EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS 1 Del Mar will offer the Fast Trace Growth Venture TM course to small businesses located in Corpus Christi. 2, Del Mar will submit invoices for all participants that qualify for the first part of the grant. 3. Del Mar will track the graduates and obtain documentation of retention of all jobs and any created jobs. 4. Del Mar will submit invoices for all participants that qualify for the second part of the grant. A-1 SMALL BUSINESS INCENTIVE AGREEMENT — Del Mar FastTrac 07 12 12 BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle 01, Title 12, Texas Local Government Code ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ( "Board "); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009 -2011 on November 17, 2009; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Del Mar College ( "Del Mar ") has submitted a proposal to the Type A Corporation for a $120,000 grant for the FastTrac® Growth VentureTM Program, which will result in creation of at least 12 new full -time permanent jobs in the City of Corpus Christi; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund Del Mar's investing in new facilities and new equipment of their existing manufacturing and distribution facilities; and WHEREAS, the Type A Corporation and Del Mar have executed a business incentives agreement FastTrac® Growth VentureTM Program, which will help small businesses and result in the creation of at least 12 new full -time permanent jobs in the City of Corpus Christi. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Business Incentive Agreement for the Creation of Jobs between the Type A Corporation and Page 1 of 3 0006_4_Type A Business Support Agreement - Del Mar FastTrac 07 13 12 Del Mar related to Del Mar locating their headquarters in Corpus Christi ( "Business Incentive Agreement "). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Type A Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City Council. 5. Effective Date. The effective date of this Project Service Agreement is August 1, 2012. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. Page 2 of 3 0006_4_Type A Business Support Agreement - Del Mar FastTrac 07 13 12 The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson City Manager President Date: Date: Attest Armando Chapa City Secretary Page 3 of 3 0006_4_Type A Business Support Agreement - Del Mar FastTrac 07 13 12 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 26, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Mike Culbertson (361) 882 -7448 mculbertson@ccredc.com Type A Grant for Del Mar College Internship Program for Fiscal Year 2013 CAPTION: Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Del Mar College ( "Del Mar ") to provide grant amount up to $173,223 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business And Job Development Corporation to administer the Del Mar College Intern Program Small Business Incentives Agreement. PURPOSE: Approve a Type A Grant for Del Mar College Internship Program for Fiscal Year 2013 BACKGROUND AND FINDINGS: Del Mar College has a program where students can work for a local company as an intern. The local company will pay minimum wage while the Type A grant will match the wage. This encourages companies to hire interns, it allows the student to get real work experience, and has a goal to create new jobs. The Type A Board has funded this program since 2007. They are requesting $173,223 to fund 95 intern positions. ALTERNATIVES: Some local companies do offer internships but these are large companies and they recruit nationwide. This allows local small companies to use interns. OTHER CONSIDERATIONS: By helping students get intern position companies can see what young talent is already in our area and this also gives the students job training to get them to stay in Corpus Christi. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and helping small businesses thrive in Corpus Christi. EMERGENCY / NON- EMERGENCY: NON - EMERGENCY DEPARTMENTAL CLEARANCES: FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 547,358 547,358 Encumbered / Expended Amount This item 173,223 173,223 BALANCE 374,135 374,135 Fund(s): Type A Fund Comments: RECOMMENDATION: Staff recommends that the City Council authorize the City Manager to enter into a one year Type A agreement LIST OF SUPPORTING DOCUMENTS: Certification of Funds Small Business Incentive Agreement Del Mar College Intern Program Business Support Agreement Page 1 of 2 RESOLUTION Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Del Mar College ( "Del Mar ") to provide grant amount up to $173,223 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business And Job Development Corporation to administer the Del Mar College Intern Program Small Business Incentives Agreement. WHEREAS, the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from Del Mar for an intern program for small businesses within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentives agreement for an intern program for small businesses between the Type A Corporation and Del Mar; WHEREAS, there is a need for a business incentive project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentives agreement for an intern program for small businesses between the Type A Corporation and Del Mar. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentives agreement for the creation and retention of jobs between the Type A Corporation and Del Mar that provides for an intern program for small businesses within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentives agreement with Del Mar, which is attached to this resolution as Exhibit B. This resolution takes effect upon City Council approval on this the day of , 2012. 0007_2_RESOLUTION Del Mar Intern Business Incentive Agreement 7 -6 -12 Page 2of2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kelley Allen Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott 0007_2_RESOLUTION Del Mar Intern Business Incentive Agreement 7 -6 -12 SMALL BUSINESS INCENTIVES AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND DEL MAR COLLEGE FOR AN INTERN PROGRAM TO SUPPORT SMALL BUSINESSES This Small Business Incentives Agreement for ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Del Mar College, a Texas institution of higher education ("Del Mar"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A Guidelines"), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, Section 501.073 of The Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, Del Mar has requested business development funds from the Board to assist small businesses by providing access to students, who will serve as interns in professional level positions; WHEREAS, the small businesses will pay the student interns minimum wage (currently $7.25 per hour) and Del Mar will match the small business contribution. WHEREAS, the interns will be selected based on the needs of the small businesses with the goal of providing the businesses with resources that make the businesses more effective and provide growth opportunities; WHEREAS, the primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development, and job creation; Page 1 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012.docx WHEREAS, the goal of the project is the creation of 1 new full time job for every 10 internship positions funded (a 10% new job "return on investment"); WHEREAS, a secondary benefit of the small business intern program is providing students real- world experience, while they are making a living wage without working extended hours and developing potential full-time employment opportunities following graduation; In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and Del Mar agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date') is the latest date that either party executes this Agreement. 2. Term, a. The term of this Agreement is for one year from August 17, 2012, through August 16, 2013. b. This Agreement may be extended at the option of the Corporation for up to four additional one year terms, contingent upon annual appropriation of funds and approval of the City Council. c. If this Agreement is extended for subsequent period, this Agreement may be amended by adoption of a revised Schedule A, which is attached to and incorporated into this Agreement. 3. Grant. a. The Corporation will grant Del Mar an incentive of up to One Hundred Seventy Three Thousand Two Hundred Twenty Three Dollars ($173,223.00), which must be used to fund one half of the salary of up to a total of 93 interns during the Fall Semester of 2012, Spring Semester of 2013, and Summer Session in 2013, and the entire salary on two interns hired to help administer the program during the Fall and Spring Semesters and Summer Session. The interns will be paid twice the minimum wage, while participating in Del Mar's Small Business Employer Intern Program. b. The Corporation's grant conditioned upon Del Mar's successful completion of the terms of this Agreement, including, but not limited to, the performance requirements and conditions precedent in Schedule A. c. The Corporation's grant shall be paid in monthly installments based upon evidence of the amount paid by Del Mar to the small business employers during the prior month. 4. Del Mar's Duties and Responsibilities. a. Del Mar shall provide administrative oversight and direct supervision for the placement of interns in the Del Mar's Small Business Employer Intern Program. b. Del Mar shall create and maintain not less than two part-time intern (2) employment positions to assist in the Small Business Employer Intern Program in Corpus Christi, Page 2 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012,docx Nueces County, Texas, during the term of this Agreement The intern must be paid twice the minimum wage, which is scheduled to be $7.25 per hour. c. Del Mar shall place, with small businesses in Corpus Christi, up to the total number of interns specified in Schedule A, during any the academic year. (1) Since the primary goal of the Del Mar's Small Business Employer Intern Program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development, and job creation, placements must be based on the needs of the small business with the goal of providing the business with resources that make the business more effective and provide growth opportunities for the businesses. (2) For the purpose of this section a small business may include chambers of commerce, non-profit organizations, and other entity that will use the intern to assist existing, start-up, and home based small businesses in the City; recruit new small business to the City; assist the expansion of existing small businesses in the City; help entrepreneurs create start-up businesses; or help the owners and managers of small businesses develop their businesses. d. Del Mar shall ensure that the small business employer of each intern pays the student intern the minimum wage, and Del Mar shall match the small business employer's payments to the interns. e. Del Mar shall try to place the interns for 19 hours per week and 12 weeks per semester or summer session. f. Del Mar shall work with the small businesses that receive interns under the program to encourage the creation of permanent full time jobs for the interns or similarly qualified individuals. 5. Job Creation/Training Qualification. a. In order to count as a created job under this Agreement, the job must pay wages at least as high as the wages required by Section 501.162 of the Act, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. In order to qualify for funds to provide job training under this Agreement, Del Mar agrees to create new jobs that pay wages at least as high as the wages required by Section 501.162 of the Act, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. c. A "job" is defined in the Type A Guidelines as a full-time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. d. Del Mar agrees to confirm and document to the Corporation that the minimum number of jobs created as a result of funding provided by this Agreement is maintained throughout the term by the Business. Page 3 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012.docx e. Del Mar agrees to provide Corporation with a sworn certificate by authorized representative of each business assisted under this Agreement certifying the number of full-time permanent employees employed by the business. f. Del Mar shall ensure that the Corporation is allowed reasonable access to personnel records of the businesses assisted under this Agreement. 6. Reports and Monitoring. a. Del Mar shall provide a report at the end of each semester or summer session certifying the status of compliance through the life of the Agreement. Documentation for jobs may be in the form of quarterly IRS 941 returns, Del Mar employer Quarterly Reports, or employee rosters that show the hours worked and the positions filled, and such other reports as may reasonably be required. b. Del Mar, during normal working hours shall allow the Corporation and its designee, City of Corpus Christi Economic Development Department, reasonable access to Del Mar's employment records and books, to verify employment and all other relevant records related to each of the other economic development considerations and incentives, as stated in this Agreement, but the confidentiality of the records and information must be maintained by Corporation and its designee, unless such records and information shall be required by a court order, a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney General. 7. Warranties. Del Mar warrants and represents to Corporation the following: a. Del Mar is a Texas institution of higher education duly organized, validly existing, and in good standing under the laws of the State of Texas, has all institution power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. Del Mar has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. Del Mar has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. Del Mar has received a copy of the Act, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. The parties executing this Agreement on behalf of Del Mar are duly authorized to execute this Agreement on behalf of Del Mar. f. Del Mar does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, Del Mar is convicted of a violation under §U.S.C. Section 1324a(f), Del Mar shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date Del Mar has been notified of the violation. Page 4 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012.docx 8. Compliance with Laws. Del Mar shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 9. Non-Discrimination, Del Mar covenants and agrees that Del Mar will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 10. Force Majeure. If the Corporation or Del Mar are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or Del Mar are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 11. Assignment. Del Mar may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 12. Indemnity. To the extent authorized by law Del Mar covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ("lndemnitees') against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with Del Mar activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the lndemnitees. Del Mar must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to lndemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 13. Events of Default by Del Mar. The following events constitute a default of this Agreement by Del Mar: a. The Corporation or City determines that any representation or warranty on behalf of Del Mar contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; b. Any judgment is assessed against Del Mar or any attachment or other levy against the property of Del Mar with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. Del Mar makes an assignment for the benefit of creditors. Page 5 of 9 BUSINESS INCENTIVE AGREEMENT ..DEL MAR Interns 7 17 2012xlecx d. Del Mar files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. e. If taxes owed by Del Mar become delinquent, and Del Mar fails to timely and properly follow the legal procedures for protest or contest. f. Del Mar changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. 14. Notice of Default. Should the Corporation or City determine that Del Mar is in default according to the terms of this Agreement, the Corporation or City shall notify Del Mar in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for Del Mar to cure the event of default. 15. Results of Uncured Default by Del Mar. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of Del Mar, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. a. Del Mar shall immediately repay all funds paid by Corporation to them under this Agreement. b. Del Mar shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation if not immediately repaid upon demand from the Corporation. c. Upon payment by Del Mar of all sums due, the Corporation and Del Mar sh I have no further obligations to one another under this Agreement. d. Neither the City, the Corporation, nor Del Mar may be held liable for any consequential damages. 16. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of Del Mar's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time Del Mar is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. Page 6 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012 docx 17. Del Mar specifically agrees that Corporation shall only be liable to Del Mar for the actual amount of the money grants to be conveyed to Del Mar, and shall not be liable to Del Mar for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this Agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from Del Mar to be accompanied by all necessary supporting documentation. 18. The parties mutually agree and understand that funding under this Agreement is subject to annual appropriations by the City Council; that each fiscal year's funding must be included in the budget for that year; and the funding is not effective until approved by the City Council. 19. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: Del Mar: Del Mar College Attn: President 101 Baldwin Corpus Christi, Texas 78404 Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. Page 7 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012,docx 20. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ("Corporation Guidelines"), as amended, are incorporated into this Agreement. 21. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign Agreements on behalf of each party. 22. Relationship of Parties. In performing this Agreement, both the Corporation and Del Mar will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 23. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 24. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 25. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 26. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and Del Mar. Any prior Agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 27. Survival of terms of Agreement and obligations of parties. The terms of this Agreement and the obligation of the parties relating to Section 14.a and b shall survive the termination of this Agreement. Page 8 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012.docx Corpus Christi Business & Job Development Corporation By: [name] President Date: Attest: By: Armando Chapa Assistant Secretary De Mar College By: Dr./Mark Escamilla, PhD President Date: THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on Escamilla, Ph.D, for Del Mar College, a political sub' oI1egedistrict. ary Public ate of Texas JESSICA ANN ALANIZ Notary Public, State ol Texas My Commission Expires B7/16/2016 Page 9 of 9 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2011.docx , 2012, by Dr. Mark the State of Texas, on behalf of EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS Placement of not more than a total of 93 interns with small businesses in Corpus Christi during the Fall Semester of 2012, Spring Semester of 2013, or Summer Session of 2014, plus employment of 2 interns to assist in program administration during the Fall and Spring Semesters and Summer Session. A-1 BUSINESS INCENTIVE AGREEMENT -DEL MAR Interns 7 17 2012.docx BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle 01, Title 12, Texas Local Government Code ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ( "Board "); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009 -2011 on November 17, 2009; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Del Mar College ( "Del Mar ") has submitted a proposal to the Type A Corporation has requested business development funds from the Board to assist small businesses by providing access to students, who will serve as interns in professional level positions; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund Del Mar's intern program; and WHEREAS, the Type A Corporation and Del Mar have executed a small business incentive agreement for an intern program to support small businesses. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Small Business Incentive Agreement between the Type A Corporation and Del Mar related to Del Mar's intern program to support small businesses in Corpus Christi ( "Business Incentive Agreement "). Page 1 of 3 0007_4_Type A Business Support Agreement - Del Mar Intern 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager or designee shall administer funding on behalf of the Type A Corporation. b. The City Manager or designee shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City Council. 5. Effective Date. The effective date of this Project Service Agreement is August 17, 2012. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. Page 2 of 3 0007_4_Type A Business Support Agreement - Del Mar Intern The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson City Manager President Date: Date: Attest Armando Chapa City Secretary 0007_4_Type A Business Support Agreement - Del Mar Intern Page 3 of 3 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 26, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Mike Culbertson (361) 882 -7448 mculbertson@ccredc.com Type A Grant for Corpus Christi Regional Economic Development Corporation to initiate an Economic Gardening program for Fiscal Year 2013 CAPTION: Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and the Corpus Christi Regional Economic Development Corporation ( "EDC ") to provide grant amount up to $96,000 to initiate an Economic Gardening program to help small businesses in Corpus Christi and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the EDC Small Business Incentives Agreement. PURPOSE: Approve a grant of $96,000 for Corpus Christi Regional Economic Development Corporation to initiate an Economic Gardening program to assist small businesses in Corpus Christi. BACKGROUND AND FINDINGS: The Economic Gardening program is in response to a directive made at the 2011 CCREDC Board Retreat to research this option for our community. In December 2011, Roland Mower, Emily Martinez and Eloy Salazar, President, Type A Board, visited with leaders in Littleton, Colorado and Ft. Collins to learn more about the program. During our visit we met with the country's leading expert in Economic Gardening, Chris Gibbons who is the Director of Business /Industry Affairs for the City of Littleton, Colorado. He initiated this program for Littleton in 1987 as a result of a layoff of several thousand employees from the community's largest employer. The CCREDC has been challenged with researching and developing an economic gardening program for our area. It is our recommendation to begin with a pilot program through the Edward Lowe Foundation. This will allow us to test the program utilizing the resources of the Edward Lowe Foundation for a minimal cost compared to fully launching the program. OTHER CONSIDERATIONS: Economic Gardening is an entrepreneurial approach to economic development that seeks to grow the local economy from within. The focus is to provide market research and high -level technical assistance to small growth- oriented companies by providing accurate, timely and relevant information to local entrepreneurs about key areas such as their competitors, customers, markets, and industry trends. This allows small business owners to make better strategic decisions, avoid costly mistakes, and successfully grow their business. This program will give small businesses resources that are not available elsewhere in the community. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and helping small businesses thrive in Corpus Christi. EMERGENCY / NON- EMERGENCY: NON - EMERGENCY DEPARTMENTAL CLEARANCES: FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 374,135 374,135 Encumbered / Expended Amount This item 96,000 96,000 BALANCE 278,135 278,135 Fund(s): Type A Fund Comments: RECOMMENDATION: Staff recommends that the City Council authorize the City Manager to enter into a one year Type A agreement LIST OF SUPPORTING DOCUMENTS: Certification of Funds Small Business Incentive Agreement CCREDC Economic Gardening Program Business Support Agreement Page 1 of 2 RESOLUTION Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and the Corpus Christi Regional Economic Development Corporation ( "EDC ") to provide grant amount up to $96,000 to initiate an Economic Gardening program to help small businesses in Corpus Christi and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the EDC Small Business Incentives Agreement. WHEREAS, the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from the EDC for the Economic Gardening program for small businesses within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentives agreement for the Economic Gardening program for small businesses between the Type A Corporation and the EDC; WHEREAS, there is a need for a business incentives project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentives agreement for the Economic Gardening program for small businesses between the Type A Corporation and the EDC. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentives agreement for the creation and retention of jobs between the Type A Corporation and the EDC that provides for the Economic Gardening program for small businesses within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentives agreement with the EDC, which is attached to this resolution as Exhibit B. This resolution takes effect upon City Council approval on this the day of , 2012. 0008_2_RESOLUTION Economic Gardening 7 -11 -12 Page 2of2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kelley Allen Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott 0008_2_RESOLUTION Economic Gardening 7 -11 -12 SMALL BUSINESS INCENTIVES AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND THE CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION FOR AN ECONOMIC GARDENING PROGRAM FOR SMALL BUSINESSES This Business Incentive Agreement for Capital Investments and the Creation and Retention of Jobs ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Corpus Christi Regional Economic Development Corporation ("CCREDC"), a Texas non-profit corporation. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A Guidelines"), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, Section 501.073 of The Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, CCREDC is a Texas non-profit corporation whose principal mission is to increase the economic activity in the Corpus Christi region; WHEREAS, CCREDC proposes to implement an Economic Gardening program to help small businesses grow and prosper; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to CCREDC through this contract with CCREDC, to be used by CCREDC to implement an Economic Gardening program to assist small businesses in the city of Corpus Christi. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and CCREDC agree as follows: Page 1 of 8 Small Business Incentive Agreement - CCREDC 7 11 12 1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for one (1) year beginning on the effective date. 3. Performance Requirements and Grants. The Performance Requirements and Grants are listed in Exhibit A, which is attached to and incorporated into this Agreement. 4. Economic Gardening Program. a. CCREDC will implement an Economic Gardening program. b. CCREDC will use the Edward Lowe Foundation to handle the back office portion to help stage 2 and stage 3 small businesses. b. CCREDC will attend training at the Edward Lowe Foundation to keep abreast of the latest procedures and to interface with the foundation. 5. Warranties. CCREDC warrants and represents to Corporation the following: a. CCREDC is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. CCREDC has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. CCREDC has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. CCREDC has received a copy of the Act, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. The parties executing this Agreement on behalf of CCREDC are duly authorized to execute this Agreement on behalf of CCREDC. f. CCREDC does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, CCREDC is convicted of a violation under §U.S.C. Section 1324a(f), CCREDC shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date CCREDC has been notified of the violation. 6. Compliance with Laws. CCREDC shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 7. Non-Discrimination. CCREDC covenants and agrees that CCREDC will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, Page 2 of 8 Small Business Incentive Agreement - CCREDC 7 11 12 marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 8. Force Majeure. If the Corporation or CCREDC are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or CCREDC are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 9. Assignment. CCREDC may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 10. Indemnity. CCREDC covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ('lndemnitees”) against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with CCREDC activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. CCREDC must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 11. Events of Default by CCREDC. The following events constitute a default of this Agreement by CCREDC: a. The Corporation or City determines that any representation or warranty on behalf of CCREDC contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; b. Any judgment is assessed against CCREDC or any attachment or other levy against the property of CCREDC with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. CCREDC makes an assignment for the benefit of creditors. d. CCREDC files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. e. If taxes owed by CCREDC become delinquent, and CCREDC fails to timely and properly follow the legal procedures for protest or contest. f. CCREDC changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. Page 3 of 8 Small Business Incentive Agreement - CCREDC 7 11 12 12. Notice of Default. Should the Corporation or City determine that CCREDC is in default according to the terms of this Agreement, the Corporation or City shall notify CCREDC in writing of the event of default and provide 60 days from the date of the notice ("Cure Period') for CCREDC to cure the event of default. 13. Results of Uncured Default by CCREDC. 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 CCREDC, 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. CCREDC shall immediately repay all funds paid by Corporation to them under this Agreement. b. CCREDC shall pay Corporation reasonable aftorney fees and costs of court to collect amounts due to Corporation if not immediately repaid upon demand from the Corporation. c. Upon payment by CCREDC of all sums due, the Corporation and CCREDC shall have no further obligations to one another under this Agreement. d. Neither the City, the Corporation, nor CCREDC may be held liable for any consequential damages. 14. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of CCREDC's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time CCREDC is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 15. CCREDC specifically agrees that Corporation shall only be liable to CCREDC for the actual amount of the money grants to be conveyed to CCREDC, and shall not be liable to CCREDC for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this Agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should Page 4 of 8 Small Business Incentive Agreement - CCREDC 7 11 12 the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from CCREDC to be accompanied by all necessary supporting documentation. 16. The parties mutually agree and understand that funding under this Agreement is subject to annual appropriations by the City Council; that each fiscal year's funding must be included in the budget for that year; and the funding is not effective until approved by the City Council. 17. Notices. a. Any required written notices shall be sent maited, certified mail, postage prepaid, addressed as follows: CCREDC; Corpus Christi Regional Economic Development Corporation Attn: Roland C. Mower, President/Chief Executive Officer 800 N Shoreline Blvd Suite 1300 S Corpus Christi, Texas 78401 Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 18. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ("Corporation Guidelines"), as amended, are incorporated into this Agreement. Page 5 of 8 Small Business Incentive Agreement - CCREDC 7 11 12 19. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign Agreements on behalf of each party. 20. Relationship of Parties. In performing this Agreement, both the Corporation and CCREDC will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 21. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 22. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 23. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 24. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and CCREDC. Any prior Agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 25. Survival of terms of Agreement and obligations of parties. The terms of this Agreement and the obligation of the parties relating to Section 14.a and b shall survive the termination of this Agreement. Corpus Christi Business & Job Development Corporation By: Date: Small SmaHBusness Incentive Agreement - CCREDC 7 1 12 [name] President Page 6 of 8 Attest: By: Armando Chapa Assistant Secretary Corpus ChrisRegional Econo mt., *c g velopment Corporation By: Roland C. Mower, CEDC President /Chief Executive Officer Date: -201 THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on 1 , 2012, by Roland C. Mower, PresidentlChief Executive Officer, for Corpus Ch i'i ti Regional Economic Development ration, Texas -profit cor +oration, on behalf of the corporation. No ary Public State of Texas Small Business Incentive Agreement - CCREDC 711 12 DAVID ALLEN BROCK Notary Public, State of Texas My Commission Expires March 22, 2016 Page 7 of 8 EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS 1. CCREDC shall set up an Economic Gardening program. This program will help stage 2 and stage 3 small businesses take the next step in their growth. CCREDC will use the Edward Lowe Foundation to help with the database searches for these companies. CCREDC will also use their current office staff and resources in helping these companies. Small a. Grant, not to exceed $96,000 for the term of the agreement. b. The Corporation will reimburse CCREDC for all direct expenses with the Economic Gardening Program including Edward Lowe Foundation costs, supplies, and travel expenses. c. Invoices will be submitted throughout the term of this agreement, payable as invoiced. usiness Incentive Agreement - CCREDC 7 1112 A-1 BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle 01, Title 12, Texas Local Government Code ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ( "Board "); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009 -2011 on November 17, 2009; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Corpus Christi Regional Economic Development Corporation ( "CCREDC ") has submitted a proposal to the Type A Corporation for a $96,000 grant for implementing an Economic Gardening program; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund CCREDC's Economic Gardening program will help stage 2 and stage 3 small businesses grow; and WHEREAS, the Type A Corporation and CCREDC have executed a business incentives agreement for the creation and retention of jobs related to CCREDC investing in new facilities and new equipment of their existing manufacturing and distribution facilities. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Business Incentive Agreement for the Creation of Jobs between the Type A Corporation and Page 1 of 3 0008_4_Type A Business Support Agreement - CCREDC 07 13 12 CCREDC related to CCREDC locating their headquarters in Corpus Christi ( "Business Incentive Agreement "). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Type A Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City Council. 5. Effective Date. The effective date of this Project Service Agreement is August 1, 2012. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation Page 2 of 3 0008_4_Type A Business Support Agreement - CCREDC 07 13 12 Ronald L. Olson [name] City Manager President Date: Date: Attest Armando Chapa City Secretary Page 3 of 3 0008_4_Type A Business Support Agreement - CCREDC 07 13 12 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 26, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Mike Culbertson (361) 882 -7448 mculbertson@ccredc.com Type A Grant for Service Corps of Retired Executives (SCORE) Chapter 221 for Fiscal Year 2013 CAPTION: Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Service Corps of Retired Executives (SCORE) Chapter 221 to provide grant up to $50,000 to assist small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the SCORE Chapter 221 Small Business Incentives Agreement. PURPOSE: Approve a Type A Grant for SCORE to assist small businesses through workshops and counseling for Fiscal Year 2013 BACKGROUND AND FINDINGS: SCORE has been aiding small businesses in Corpus Christi through their outreach by holding workshops on various subjects of use to the small business owner, and by providing counseling through face to face meetings and through emails. SCORE will have a contractor to coordinate the workshops and the advertising for these workshops. They have helped over 2,000 small businesses in the city each year for the past three years. SCORE has received funding since 2008. ALTERNATIVES: The help that they provide is not available anywhere else. The Small Business Development Center could offer some of the counseling services but they are limited on resources. OTHER CONSIDERATIONS: By helping small businesses the City is increasing the economic development and growing future jobs. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and helping small businesses thrive in Corpus Christi. EMERGENCY / NON- EMERGENCY: NON - EMERGENCY DEPARTMENTAL CLEARANCES: FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 278,135 278,135 Encumbered / Expended Amount This item 50,000 50,000 BALANCE 228,135 228,135 Fund(s): Type A Fund Comments: RECOMMENDATION: Staff recommends that the City Council authorize the City Manager to enter into a one year Type A agreement LIST OF SUPPORTING DOCUMENTS: Certification of Funds Small Business Incentive Agreement SCORE Business Support Agreement Page 1 of 2 RESOLUTION Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Service Corps of Retired Executives (SCORE) Chapter 221 to provide grant up to $50,000 to assist small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the SCORE Chapter 221 Small Business Incentives Agreement. WHEREAS, the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from SCORE to assist small businesses within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentives agreement to assist small businesses between the Type A Corporation and SCORE; WHEREAS, there is a need for a business incentive project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentives agreement to assist small businesses between the Type A Corporation and SCORE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentives agreement for business development between the Type A Corporation and SCORE to assist small businesses within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentives agreement with SCORE, which is attached to this resolution as Exhibit B. This resolution takes effect upon City Council approval on this the day of , 2012. 0009_2_RESOLUTION SCORE Business Incentive Agreement 7 -6 -12 Page 2of2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kelley Allen Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott 0009_2_RESOLUTION SCORE Business Incentive Agreement 7 -6 -12 BUSINESS INCENTIVE AGREEMENT BE EEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND SERVICE CORPS OF RETIRED EXECUTIVES (SCORE) CHAPTER 221 FOR BUSINESS DEVELOPMENT This Business Incentive Agreement for Capital Investments and the Creation and Retention of Jobs (Agreement') is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Service Corps Of Retired Executives Chapter 221 ("SCORE"), a Washington, D.C. non-profit corporation. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vemon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A Guidelines"), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, Section 501.073 of The Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, SCORE will provide assistance to small businesses, persons, and entities desiring to begin and operate a small business in Corpus Christi by mentoring clients; conducting workshops; and advising clients as to business plans, pro-forma statements, forms of business entity, financial implications of business decisions, and all other aspects of small business operations; WHEREAS, SCORE proposes retain an executive assistant/coordinator to assist SCORE volunteers in administrating the assistance program; WHEREAS, the Board determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to SCORE, through this Agreement with SCORE, to be used by SCORE to provide assistance to small businesses. Page 1 of 8 SCORE Type A Small Business Development Agreement 07 12 12 In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and SCORE agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date') is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for one (1) year beginning on the effective date. 3. Performance Requirements and Grants. The Performance Requirements and Grants are listed in Exhibit A, which is attached to and incorporated into this Agreement. 4. Warranties. SCORE warrants and represents to Corporation the following: a. SCORE is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. SCORE has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. SCORE has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. SCORE has received a copy of the Act, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. The parties executing this Agreement on behalf of SCORE are duly authorized to execute this Agreement on behalf of SCORE. f. SCORE does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, SCORE is convicted of a violation under §U.S.C. Section 1324a(f), SCORE shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date SCORE has been notified of the violation. 5. Compliance with Laws. SCORE shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 6. Non-Discrimination. SCORE covenants and agrees that SCORE will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 7, Force Majeure. If the Corporation or SCORE are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or SCORE Page 2 of 8 SCORE Type A Small Business Development Agreement 07 12 12 are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 8. Assignment. SCORE may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 9. Indemnity. SCORE covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ("Indemnitees") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with SCORE activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the lndemnitees. SCORE must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to lndemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 10. Events of Default by SCORE. The following events constitute a default of this Agreement by SCORE: a. The Corporation or City determines that any representation or warranty on behalf of SCORE contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; b. Any judgment is assessed against SCORE or any attachment or other levy against the property of SCORE with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. SCORE makes an assignment for the benefit of creditors. d. SCORE files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. e. If taxes owed by SCORE become delinquent, and SCORE fails to timely and properly follow the legal procedures for protest or contest. f. SCORE changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. 11. Notice of Default. Should the Corporation or City determine that SCORE is in default according to the terms of this Agreement, the Corporation or City shall notify SCORE in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for SCORE to cure the event of default. Page 3 of 8 SCORE Type A Small Business Development Agreement 07 12 12 12. Results of Uncured Default by SCORE. 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 SCORE, 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. SCORE shall shaU immediately repay all funds paid by Corporation to them under this Agreement. b. SCORE shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation if not immediately repaid upon demand from the Corporation. c. Upon payment by SCORE of all sums due, the Corporation and SCORE shall have no further obligations to one another under this Agreement. d. Neither the City, the Corporation, nor SCORE may be held liable for any consequential damages. 13, No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of SCORE's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time SCORE is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 14. SCORE specifically agrees that Corporation shall only be liable to SCORE for the actual amount of the money grants to be conveyed to SCORE, and shall not be liable to SCORE for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this Agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties grant amount for that year, and Corporation shall not be liable to for any Page 4 of 8 SCORE Type A Small Business Development Agreement 07 12 12 deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from SCORE to be accompanied by all necessary supporting documentation. 15, The parties mutually agree and understand that funding under this Agreement is subject to annual appropriations by the City Council; that each fiscal year's funding must be included in the budget for that year; and the funding is not effective until approved by the City Council. 16. Notices. a, Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: SCORE Chapter 221: SCORE 221 Chapter Chair 3649 Leopard St., Suite 411 Corpus Christi, Texas 78408 Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 17. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ("Corporation Guidelines"), as amended, are incorporated into this Agreement. 18. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign Agreements on behalf of each party. 19. Relationship of Parties. In performing this Agreement, both the Corporation and SCORE will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. SCORE Type A Small Business Development Agreement Page 5 of 8 7 12 12 20. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 21. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 22. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 23. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and SCORE. Any prior Agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 24. Survival of terms of Agreement and obligations of parties. The terms of this Agreement and the obligation of the parties relating to Section 14.a and b shall survive the termination of this Agreement. Corpus Christi Business & Job Development Corporation By Date: Attest' By President Armando Chapa Assistant Secretary Page 6 of 8 SCORE Type A Small Business Development Agreement 07 12 12 [Business By: Jack Green President Date: THE STATE OF TEXAS COUNTY OF This instrument was acknowledged before me on —/ -16 , 2012, by Jack Green, President for Service Corps of Retired Executives (SCORE) Chapter 221, a Washington, D.C. non irofit corporation on behalf of the corporation. No a Ty usIic State o Texas 144 tREHE GARCIP, Notary Pubtic, State of -Texas My Commission EXPiTOS 30, 2012 Page 7 of 8 SCORE Type A Small Business Development Agreement 07 12 12 EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS Corporation will reimburse SCORE by grant for all direct expenses related to the project. The total reimbursements may not exceed Fifty Thousand Dollars ($50,000.00. 2. Providing 1,620 hours of general and technical services to small businesses through volunteer counselors. 3. SCORE agrees to the following reporting and monitoring provisions, and failure to fully and timely comply with any one requirement is an act of default. 4. SCORE shall provide quarterly reports on its performance requirements. The reports must document: a. Number of face to face consultations between SCORE volunteers and small business owners or prospective owners. b. Number of workshops with description of workshop and number of attendees. c. Number of small business owners or prospective owners who were provided counseling by email or on-line services. 5. SCORE, during normal working hours, at its Corpus Christi, Texas, facility, shall allow Corporation and its designee, the City's Economic Development Department ("Department"), reasonable access to SCORE's employment records and books, to verify employment and all other relevant records related to each of the other economic development considerations and incentives, as stated in this agreement, but the confidentiality of records and information shall be maintained by Corporation and Department, unless the records and information shall be required by a court order, a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney General. A-8 SCORE Type A Small Business Development Agreement 07 12 12 BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle 01, Title 12, Texas Local Government Code ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ( "Board "); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009 -2011 on November 17, 2009; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Service Corps Of Retired Executives Chapter 221 ( "SCORE ") has submitted a proposal to the Type A Corporation for a $50,000 grant to assist small businesses in Corpus Christi; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund SCORE's assistance of small businesses in Corpus Christi; and WHEREAS, the Type A Corporation and SCORE have executed a business incentives agreement for the creation and retention of jobs related to SCORE's assistance of small businesses in Corpus Christi. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Business Incentive Agreement for the Creation of Jobs between the Type A Corporation and SCORE related to SCORE's assistance of small businesses in Corpus Christi ( "Business Incentive Agreement "). Page 1 of 3 0009_4_Type A Business Support Agreement - SCORE 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentives Agreement. 3. Services to be Provided by City. a. The City Manager or designee shall administer funding on behalf of the Type A Corporation. b. The City Manager or designee shall perform contract administration responsibilities outlined in the Business Incentives Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City Council. 5. Effective Date. The effective date of this Project Service Agreement is , 20_. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. Page 2 of 3 0009_4_Type A Business Support Agreement - SCORE The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson [name] City Manager President Date: Date: Attest Armando Chapa City Secretary 0009_4_Type A Business Support Agreement - SCORE Page 3 of 3 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 26, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Mike Culbertson (361) 882 -7448 mculbertson@ccredc.com Type A Grant for Texas A &M University — Corpus Christi Internship Program for Fiscal Year 2013 CAPTION: Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Texas A &M University- Corpus Christi ( "TAMU -CC ") to provide grant amount up to $190,635 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the TAMU -CC Intern Program Small Business Incentives Agreement. PURPOSE: Approve a Type A Grant for TAMU -CC Internship Program for Fiscal Year 2013 BACKGROUND AND FINDINGS: TAMU -CC has a program where students can work for a local company as an intern. The local company will pay minimum wage while the Type A grant will match the wage. This encourages companies to hire interns, it allows the student to get real work experience, and has a goal to create new jobs. The Type A Board has funded this program since 2007. They are requesting $190,635 to fund 105 intern positions. ALTERNATIVES: Some local companies do offer internships but these are large companies and they recruit nationwide. This program allows local small businesses to use interns. OTHER CONSIDERATIONS: By assisting students obtain intern positions businesses can see what young talent is available in our community, while providing the students job training opportunities. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and helping small businesses thrive in Corpus Christi. EMERGENCY / NON- EMERGENCY: NON - EMERGENCY DEPARTMENTAL CLEARANCES: FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 228,135 228,135 Encumbered / Expended Amount This item 190,635 190,635 BALANCE 37,500 37,500 Fund(s): Type A Fund Comments: RECOMMENDATION: Staff recommends that the City Council authorize the City Manager to enter into a one year Type A agreement LIST OF SUPPORTING DOCUMENTS: Certification of Funds Small Business Incentive Agreement Texas A &M University — Corpus Christi Intern Program Business Support Agreement Page 1 of 2 RESOLUTION Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business And Job Development Corporation and Texas A &M University- Corpus Christi ( "TAM U -CC ") to provide grant amount up to $190,635 for an intern program for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the TAMU - CC Intern Program Small Business Incentives Agreement. WHEREAS, the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from TAMU -CC for an intern program for small businesses within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentives agreement for an intern program for small businesses between the Type A Corporation and TAMU -CC; WHEREAS, there is a need for a business incentive project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentives agreement for an intern program for small businesses between the Type A Corporation and TAMU -CC. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentives agreement for the creation and retention of jobs between the Type A Corporation and TAMU -CC that provides for an intern program for small businesses within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentives agreement with TAMU -CC, which is attached to this resolution as Exhibit B. This resolution takes effect upon City Council approval on this the day of , 2012. 0010_2_RESOLUTION TAMUCC Business Incentive Agreement 7 -11 -12 Page 2of2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kelley Allen Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott 0010_2_RESOLUTION TAMUCC Business Incentive Agreement 7 -11 -12 SMALL BUSINESS INCENTIVES AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND TEXAS A & M UNIVERSITY -- CORPUS CHRISTI FOR AN INTERN PROGRAM TO SUPPORT SMALL BUSINESSES This Small Business Incentives Agreement for ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Texas A & M University -- Corpus Christi, a Texas institution of higher education ("TAMU-CC"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised-Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A Guidelines"), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, Section 501.073 of The Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, TAMU-CC has requested business development funds from the Board to assist small businesses by providing access to students, who will serve as interns in professional level positions; WHEREAS, the small businesses will pay the student interns minimum wage (currently $7.25 per hour) and TAMU-CC will match the small business contribution. WHEREAS, the interns will be selected based on the needs of the small businesses with the goal of providing the businesses with resources that make the businesses more effective and provide growth opportunities; WHEREAS, the primary goal of the program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development, and job creation; Page 1 of 9 BUSINESS INCENTIVE AGREEMENT TAMUCC Interns 07 9 2012 WHEREAS, the goal of the project is the creation of 1 new full time job for every 10 internship positions funded (a 10% new job "return on investment"); WHEREAS, a secondary benefit of the small business intern program is providing students real- world experience, while they are making a living wage without working extended hours and developing potential full-time employment opportunities following graduation; In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and TAMU-CC agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date") is the Patest date that either party executes this Agreement. 2. Term. a. The term of this Agreernent is for one year from August 10, 2012, through August 2013. b. This Agreement may be extended at the option of the Corporation for up to four additional one year terms, contingent upon annual appropriation of funds and approval of the City Council. c. If this Agreement is extended for subsequent period, this Agreement may be amended by adoption of a revised Schedule A, which is attached to and incorporated into this Agreement. 3. Grant. a. The Corporation will grant TAMU-CC an incentive of up to One Hundred Ninety Thousand Six Hundred Thirty Five Dollars ($190,635.00), which must be used to fund one half of the salary of up to a total of 105 interns during the Fall Semester of 2012, Spring Semester of 2013, and Summer Session in 2013, and the entire salary on an intern hired to help administer the program during the fall and -Spring Semesters and Summer Session. The interns will be paid twice the minimum wage, while participating in TAMU-CC's Small Business Employer Intern Program. b. The Corporation's grant conditioned upon TAMU-CC`s successful completion of the terms of this Agreement, including, but not limited to, the performance requirements and conditions precedent in-Schedule A. c. The Corporation's grant shall be paid in monthly installments based upon evidence of the amount paid by TAMU-CC to the small business employers during the prior month. 4. TAMU-CC's Duties and Responsibilities. a. TAMU-CC shall provide administrative oversight and direct supervision for the placement of interns in the TAMU-CC's Small Business Employer Intern Program. b. TAMU-CC shall create and maintain not less than one part-time intern (1) employment position to assist in the Small Business Employer Intern Program in Corpus Page 2 of 9 BUSINESS INCENTIVE AGREEMENT TAMUCC Interns 07 9 2012 Christi, Nueces County, Texas, during the term of this Agreement. The intern must be paid twice the minimum wage, which is scheduled to be $7.25 per hour. c. TAMU-CC shall place, with small businesses in Corpus Christi, up to the total number of interns specified in Schedule A, during any the academic year. (1) Since the primary goal of the TAMU-CC's Small Business Employer Intern Program is to provide support to small businesses in Corpus Christi that will encourage growth, retention, economic development, and job creation, placements must be based on the needs of the small business with the goal of providing the business with resources that make the business more effective and provide growth opportunities for the businesses. (2) For the purpose of this section a small business may include a chambers of commerce, non-profit organizations, and other entity that will use the intern to assist existing, start-up, and home based small businesses in the City; recruit new small business to the City; assist the expansion of existing small businesses in the City; help entrepreneurs create start-up businesses; or help the owners and managers of small businesses develop their businesses. d. TAMU-CC shall ensure that the small business employer of each intern pays the student intern the minimum wage, and TAMU-CC shall match the small business employer's payments to the interns. e. TAMU-CC shall try to place the interns for 20 hours per week and 12 weeks per semester or summer session. f. TAMU-CC shall work with the small businesses that receive interns under the program to encourage the creation of permanent full time jobs for the interns or similarly qualified individuals. 5. Job Creation/Training Qualification. a. In order to count as a created job under this Agreement, the job must pay wages at least as high as the wages required by Section 501.162 of the Act, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. In order to qualify for funds to provide job training under this Agreement, TAMU-CC agrees to create new jobs that pay wages at least as high as the wages required by Section 501.162 of the Act, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. A "job" is defined in the Type A Guidelines as a full-time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. d. TAMU-CC agrees to confirm and document to the Corporation that the minimum number of jobs created as a result of funding provided by this Agreement is maintained throughout the term by the Business. Page 3 of 9 BUSINESS INCENTIVE AGREEMENT TAMUCC Interns 07 9 2012 e. TAMU-CC agrees to provide Corporation with a sworn certificate by authorized representative of each business assisted under this Agreement certifying the number of full-time permanent employees employed by the business. f. TAMU-CC shall ensure that the Corporation is allowed reasonable access to personnel records of the businesses assisted under this Agreement. 6. Reports and Monitoring. a. TAMU-CC shall provide a report at the end of each semester or summer session certifying the status of compliance through the life of the Agreement. Documentation for jobs may be in the form of quarterly IRS 941 returns, TAMU-CC employer Quarterly Reports, or employee rosters that show the hours worked and the positions filled, and such other reports as may reasonably be required. b. TAMU-CC, during normal working hours shall allow the Corporation and its designee, City of Corpus Christi Economic Development Department, reasonable access to TAMU- CC's employment records and books, to verify employment and all other relevant records related to each of the other economic development considerations and incentives, as stated in this Agreement, but the confidentiality of the records and information must be maintained by Corporation and its designee, unless such records and information shall be required by a court order, a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney General. 7. Warranties. TAMU-CC warrants and represents to Corporation the following: a. TAMU-CC is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. TAMU-CC has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. TAMU-CC has timely filed and will timely file all local, State, and federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid, during the term of this Agreement. d. TAMU-CC has received a copy of the Act, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. The parties executing this Agreement on behalf of TAMU-CC are duly authorized to execute this Agreement on behalf of TAMU-CC. f. TAMU-CC does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, TAMU-CC is convicted of a violation under §U.S.C. Section 13240), TAMU-CC shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date TAMU-CC has been notified of the violation. Page 4 of 9 BUSINESS INCENTIVE AGREEMENT TAMUCC Interns 07 9 2012 8. Compliance with Laws. TAMU-CC shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 9. Non-Discrimination. TAMU-CC covenants and agrees that TAMU-CC will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 10. Force Majeure. If the Corporation or TAMU-CC are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or TAMU-CC are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 11. Assignment. TAMU-CC may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 12. Indemnity. TAMU-CC covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents (Indemnitees, against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with TAMU-CC activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. TAMU-CC must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions, 13. Events of Default by TAMU-CC. The following events constitute a default of his Agreement by TAMU-CC: a. The Corporation or City determines that any representation or warranty on behalf of TAMU-CC contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; b. Any judgment is assessed against TAMU-CC or any attachment or other levy against the property of TAMU-CC with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. TAMU-CC makes an assignment for the benefit of creditors. d. TAMU-CC files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. Page 5 of 9 BUSINESS I NTIVE AGREEMENT TAMUCC Interns 07 9 2012 e. If taxes owed by TAMU-CC become delinquent, and TAMU-CC fails to timely and properly follow the legal procedures for protest or contest. f. TAMU-CC changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. 14. Notice of Default. Should the Corporation or City determine that TAMU-CC is in default according to the terms of this Agreement, the Corporation or City shall notify TAMU-CC in writing of the event of default and provide 60 days from the date of the notice ('Cure Period') for TAMU-CC to cure the event of default. 15. Results of Uncured Default by TAMU-CC. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of TAMU-CC, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. a. TAMU-CC shall immediately repay all funds paid by Corporation to them under this Agreement. b. TAMU-CC shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation if not immediately repaid upon demand from the Corporation. c. Upon payment by TAMU-CC of all sums due, the Corporation arid TA U-CC shall have no further obligations to one another under this Agreement. d. Neither the City, the Corporation, nor TAMU-CC may be held liable for any consequential damages. 16. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of TAMU-CC's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time TAMU-CC is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. Page 6 of 9 BUSINESS INNTIVE AGREEMENT TAMUCC Interns 07 9 2012 17. TAMU-CC specifically agrees that Corporation shall only be liable to TAMU-CC for the actual amount of the money grants to be conveyed to TAMU-CC, and shall not be liable to TAMU-CC for any actual or consequential damages, direct or indirect, interest, attomey fees, or cost of court for any act of default by Corporation under the terms of this Agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this Agreement. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from TAMU-CC to be accompanied by all necessary supporting documentation. 18. The parties mutually agree and understand that funding under this Agreement is subject to annual appropriations by the City Council; that each fiscal year's funding must be included in the budget for that year; and the funding is not effective until approved by the City Council. 19. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: TAMU-CC: Texas A & M University —Corpus Christi Attn: Interim Vice President, Division of Research, Commercialization and Outreach 6300 Ocean Drive, Unit 5843 Corpus Christi, Texas 78412-5843 Corporation: City of Corpus Christi Business and Job Development Corporati Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the ollowing address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States ma in the manner provided above. BUSINESS NCENT Page 7 of 9 IVE AGREEMENT TAMUCC hterns 07 9 2012 20. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ("Corporation Guidelines"), as amended, are incorporated into this Agreement. 21. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign Agreements on behalf of each party. 22. Relationship of Parties. In performing this Agreement, both the Corporation and TAMU-CC will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 23. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 24. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 27. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 28. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and TAMU-CC. Any prior Agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 29. Survival of terms of Agreement and obligations of parties. The terms of this Agreement and the obligation of the parties relating to Section 14.a and b shall survive the termination of this Agreement. Page 8 of 9 BUSINESS INCENTIVE AGREEMENT TAMUCC Interns 07 9 2012 Corpus Christi Business & Job Development Corporation By: [name] President Date: Attest: By: Armando Chapa Assistant Secretary Texas A & M Uni — Corpus Christi By: Luis . Cifuentes Inter' Vice Presiden Division of Research, Commercialization and Outreach Date: 7 THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2012, by Luis A. Cifuentes, Interim Vice President, Division of Research, Commercialization and Outreach, Texas A & M University -- o us Christ a Texas institution of higher education, on behalf of the uniyesity. Notary Public State of Texas DEANNE HUBENAK Notary Public, State of Texas Commission Expires: 05-22-2016 Notary ithout Bond Page 9 of 9 BUSINESS INCENTIVE AGREEMENT TAMUCC Interns 07 9 2012 EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS Placement of not more than a total of 105 interns with small businesses in Corpus Christi during the Fall Semester of 2012, Spring Semester of 2013, and/or Summer Session of 2013, plus employment of 1 intern to assist in program administration during the Fall and Spring Semesters and Summer Session. A -- 1 BUSINESS INCENTIVE AGREEMENT TAMUCC Interns 07 9 2012 BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle 01, Title 12, Texas Local Government Code ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ( "Board "); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009 -2011 on November 17, 2009; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Texas A &M University — Corpus Christi ( "TAMU -CC ") has submitted a proposal to the Type A Corporation has requested business development funds from the Board to assist small businesses by providing access to students, who will serve as interns in professional level positions;; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund TAMU -CC's intern program; and WHEREAS, the Type A Corporation, TAMU -CC has executed a small business incentive agreement for an intern program to support small businesses. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Small Business Incentive Agreement between the Type A Corporation and TAMU -CC related to TAMU -CC's intern program to support small businesses in Corpus Christi ( "Business Incentive Agreement "). Page 1 of 3 0010_4_Type A Business Support Agreement - TAMU -CC Intern 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager or designee shall administer funding on behalf of the Type A Corporation. b. The City Manager or designee shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City Council. 5. Effective Date. The effective date of this Project Service Agreement is August 10, 2012. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. Page 2 of 3 0010_4_Type A Business Support Agreement - TAMU -CC Intern The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson [name] City Manager President Date: Date: Attest Armando Chapa City Secretary Page 3 of 3 0010_4_Type A Business Support Agreement - TAMU -CC Intern AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: August 2, 2012 TO: Ronald L. Olson, City Manager FROM: Wes Pierson, Assistant City Manager — Business Support Services WesP @cctexas.com (361) 826 -3082 Professional Services Management Agreement for Corpus Christi Museum of Science and History. CAPTION: Motion authorizing the City Manager or his designee to execute a twenty four month agreement with Corpus Christi Museum Joint Venture (CCMJV) to operate and manage the Corpus Christi Museum of Science and History (Museum). PURPOSE: The Corpus Christi Museum of Science and History has been operating under management and funding models that have proven unsustainable. City staff has developed a proposal for an alternative business model with the intention of improving the museum's current performance and serving as a new template museum management across the country. BACKGROUND AND FINDINGS: Over the last 12 years, paid Museum attendance has decreased approximately 65 %, while budget cuts have resulted in fewer resources for the museum. In an effort to improve museum performance and to create a new business model for museum management, staff recommends the transfer of museum operations through a two -year management agreement to a group called Corpus Christi Museum Joint Venture (CCMJV), a subsidiary of Durrill Properties. The goal of management agreement includes: • To create a more engaging museum experience while maintaining the museum's science and history mission; • To ensure the museum's integrity by maintaining its accreditation through the American Association of Museums and its certification as an archeological repository through the Texas Historical Commission; • To preserve public access to museum collections; • To move toward a long -term management agreement; • To modernize (redesign /remodel) the interior and exterior of the building. 1 CCMJV proposes to use their extensive business experience to improve operational efficiency and to use their expertise in event planning, promotion, enhancing food and beverage service, and fund raising to increase the museum's attendance and revenue. Additionally, with a long history of providing both civic and monetary contributions to the Corpus Christi community, the Durrill's have a philanthropic interest in seeing the museum succeed. Process Staff engaged in an extensive process to ensure that the proposed agreement would both protect the interests of the museum and allow CCMJV the flexibility necessary to operate the museum successfully. The process included the following: • The creation of a taskforce made up of representatives from each of the three museum support groups (Museum Advisory Committee, Friends of the Museum, and Museum Auxiliary) to provide input regarding the concept. All three museum support groups passed motions of support for the proposed management structure and all three groups will largely maintain their current roles in support of the museum (the lone exception being that the Museum Auxiliary will transition management of the museum gift shop to CCMJV). • Constant communication with museum employees through group meetings and an employee selected working group to ensure that employees were informed of the progress being made regarding the concept and how they might be impacted through a transition from City to private management. • The formation of a City negotiating team made up of representatives from the City Manager's Office, Museum, Legal, Human Resources, Finance, Management and Budget departments to cover any potential issues that would require consideration under a new management agreement. • Staff used the previously agreed to Memorandum of Understanding (MOU) as the foundation of the proposed management model and worked diligently to ensure that every major point from the MOU was appropriately addressed in the new management agreement • The City has engaged Strategic Government Resources (an Executive Search Firm) to conduct a national search for a new Museum Director. The search is currently underway with a new director projected to be start work in October of 2012. Timeline The timeline for this proposed management agreement is a period of 24 months starting September 1, 2012 and running until August 31, 2014. During the two -year timeframe CCMJV will be required to provide to the City performance reports on a monthly and quarterly basis. Important milestones of the agreement include the following: • Selection and hiring of a new Museum Director (1St Quarter of the Agreement) • Employee Transition [See Museum Personnel section below] (six months after the effective date of the agreement) • Submission of a long -term business plan by CCMJV (18 months after effective date of the agreement). The long -term business plan will serve as a guide to make one of three decisions: 1) enter into a long -term extension; 2) enter into a short -term extension; or 3) terminate the agreement upon its expiration date. The final six months of the agreement will allow for implantation of whatever decision is agreed to. 2 Deal Points The key deal points in this agreement are as follows: • The City shall retain ownership of all museum land, buildings & collections (Recitals). • The City shall provide a flat budget (relative to Fiscal Year 2012) for Fiscal Years 2013 & 2014 (Article 5.3). • CCMJV shall maintain the museum's mission, certification, & accreditation (Articles 5.1, 5.2, 7.1). • CCMJV shall maintain citizen support & oversight of museum (Articles 20.1, 22.4). • CCMJV shall preserve public access to museum collections (Article 5.2). • A revenue sharing arrangement provides incentives for both facility improvements and improved financial performance. A diagram of the revenue sharing model is attached to this agenda item. (Articles 25, 26). Facility Improvements — Articles 10, 13, 14 & 25 The management agreement provides for a mechanism that encourages investment in the improvement of the museum facilities. The following is the process for handling proposed facility improvements: 1) CCMJV will submit a Facility Improvement Plan (FIP) shortly after execution of the management agreement. The Facility Improvement Plan sets the threshold for facility improvement reimbursements. (Article 13.2, 25). 2) The FIP is presented to Museum Advisory Board, who then provides a recommendation to the City Manager [or designee] (Article 13.3). 3) The City Manager (or designee) approves or disapproves the FIP (Article 13.1, 13.3). 4) If the FIP is approved, the first phase of implementation begins (Article 13.3) 5) The CCMJV General Manager and Museum Director will develop timeline for phased construction to mitigate disruption of operations (Article 13.3). 6) Once completed, improvements are accepted by City Manager (or designee). If improvements are not accepted, corrections will be made to make improvements acceptable (Article 13.3). 7) Per the management agreement, CCMJV can be reimbursed up to the amount approved in the FIP contingent upon generating revenue that exceeds the benchmark for covering annual operating expenses (Article 13.3, 25.1). 8) Any amount not reimbursed in the current fiscal year may be rolled over to the following fiscal year for reimbursement (Article 25.1). 9) Any amount not reimbursed at the end of the agreement due to revenues failing to exceed the revenue benchmarks identified in the management agreement will not be reimbursed unless otherwise agreed to as part of an extension of the agreement (Article 25.4). 10) Any increase in the costs of operations, programming, and maintenance as a result of new facilities and exhibits will be the responsibility of CCMJV (Article 10) 3 Museum Personnel - Articles 18, 19, 20 & 21 • Museum Staff will remain employees of the City for the first 6 months. During this period staff will decide if they would like to remain with the City or transition to CCMJV employment; CCMJV will evaluate staff performance to determine which employees they would like to retain (Article 18). • At the end of the 6 month period, museum staff may elect to: 1) transition to CCMJV employment; 2) be placed in an existing vacancy within the City per the City's Reduction in Force Policy; or 3) seek other employment opportunities independent of either the CCMJV or the City (Article 18.1). • A detailed Employee Transition Plan will be presented for Council approval by August 31, 2012; this plan will govern how the transition will take place (Article 18.4). • CCMJV is required to maintain 8 positions which shall be staffed by museum professionals. These positions include: Museum Director, Collection Manager, Registrar, Librarian, Educator, Education Assistant, Science Exhibit Project Manager and History Exhibit Project Manager (Article 21.1). • Professional staffing positions can only be modified by the Museum Director with approval of the City Manager (Article 21.2). ALTERNATIVES: 1) One alternative is to maintain the museum's existing management and funding models. However, this is not recommended because the status quo is not the highest and best use of City resources nor is it sustainable in the long run. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: This management agreement conforms to the guidelines that govern the use of professional services agreements. The management agreement also maintains the mission of the Corpus Christi Museum of Science and History. EMERGENCY / NON-EMERGENCY: Not applicable. DEPARTMENTAL CLEARANCES: Museum Museum Advisory Committee Friends of the Museum 4 FINANCIAL IMPACT: ® Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 1,450,304 1,450,304 Encumbered / Expended Amount This item 1,450,304 1,450,304 BALANCE 0 0 Fund(s): General Fund - Museum Comments: The line item budget for museum operations for fiscal years 2013 and 2014 will be maintained at the approved fiscal year 2012 level. The management agreement requires CCMJV to cover over $1.2 million dollars in operational expenses. The remaining expense is associated with the City's self- insurance obligations to cover City property and will be the responsibility of the City. RECOMMENDATION: Staff recommends entering into a management agreement with Corpus Christi Museum Joint Ventures for 24 months. LIST OF SUPPORTING DOCUMENTS: Contract Exhibit — Museum Management Agreement Cash Flow Diagram 5 PROFESSIONAL SERVICE MANAGEMENT AGREEMENT FOR THE CORPUS CHRISTI MUSEUM OF SCIENCE AND HISTORY BETWEEN CITY OF CORPUS CHRISTI AND CORPUS CHRISTI MUSEUM JOINT VENTURE 1 ARTICLE 1 DEFINITIONS "Advisory Board" 14 "Affiliate" 14 "Annual Report" 14 "AAM" 14 "Auxiliary" 14 "Business Day" 14 "Capital Campaign" 14 "Code" 14 "City" 14 "City Council" 15 "City Documents" 15 "City Employees" 15 "Collection Committee" 15 "Collection Fund" 15 "Depository" 15 "Effective Date" 15 "Emergency Expenditure" 15 "Employee Transition Plan" 15 "Facility Improvement Expenditures" 15 "First - Class" 15 "Fiscal Year" 16 "Friends of the Museum" 16 "General Manager" 16 "Gross Revenue" 16 "Gross Revenue Benchmark" 16 "Gross Revenue Deficiency" 16 "Internal Strategic Objectives" 16 "Long -Range Plan" 17 "Management Fees" 17 "Museum" 17 2 "Museum Collection" 17 "Museum Collection Manager" 17 "Museum Department" 17 "Museum Director" 17 "Museum's Mission" 17 "Museum Purposes" 17 "Operating Expenses" 17 "Operations Manual" 18 "Operating Support Payment" 18 "Outside Caterers" 18 "Outside Catering Agreement 18 "Parking Lots" 18 "Personal Property Expenditures" 18 "Preexisting Condition" 18 "Premises" 19 "Property" 19 "Routine Repair and Maintenance" 19 "Transferred Employees" 19 "THC" 19 ARTICLE 2 INTRODUCTION 2.1 Term 19 2.2 Option to Extend Terms 19 2.3 Grant of Authority. 19 2.4 Nature of Relationship. 19 2.5 Contract Administrator 19 ARTICLE 3 MANAGEMENT AND OPERATION OF PREMISES AND PERSONAL PROPERTY 3.1 Premises 20 3.2 Personal Property. 20 (a) Vehicle and Forklift Assigned to Museum 20 3.3 Use of the Premises 20 (a) Required Use. 20 3 (b) Prohibited Use. 20 (c) No Illegal Uses or Nuisances. 20 3.4 Parking Lot Use 21 3.5 Occupancy Hours 21 ARTICLE 4 EXISTING THIRD -PARTY AGREEMENTS 4.1 Existing Third -Party Agreements 21 ARTICLE 5 OPERATIONS 5.1 CCMJV Responsibility. 21 5.2 Museum Mission 22 (a) Internal Strategic Objectives. 22 5.3 City Operations Support Payments. 22 (a) Operations Account 22 (b) Operation Support Payment 23 (c) Advancing of Funds for Operation Support. 23 (d) Modification of Operating Support Payment due to Wage Increase. 23 (e) Modification of Operational Support Payment due to Savings 23 (f) Over Budgeted Expenses 24 (g) Unbudgeted and Under Budgeted Expenses 24 5.4 City Paid Expenses 24 (a) City Employee Salaries and Wages 24 (b) City Provided Services. 24 (1) Municipal Information Systems Services 24 (2) Building Maintenance Service. 24,. (3) Fleet Services. 24 (c) Electricity. 25 (1) Conditions Affecting Electricity Usage 25 (2) McKinstry Essention Inc Notification 25 5.5 City Procurements 25 (a) Computers Procurement. 25 (b) Multifunction Copier Procurement 25 (c) Dumpster Service Procurement. 25 4 (d) Elevator Maintenance Procurement 25 5.6 Museum Accounts. 26 5.7 Consolidated Bill. 26 5.8 Water, Gas, and Waste Water. 26 5.9 Proportionate Year. 26 ARTICLE 6 LONG -RANGE PLAN 6.1 Long -Range Plan. 26 ARTICLE 7 ACCREDITATION, CERTIFICATION, LICENSING, AND PERMITS 7.1 Required Accreditation and Certification. 26 7.2 Licenses and Permits 26 7.3 City Representations. 27 ARTICLE 8 MUSEUM COLLECTION MANAGEMENT 8.1 Collection Inventory. 27 8.2 Collection Management Policy. 27 8.3 Deaccession of Collection 27 8.4 Deaccessioned Objects. 27 (a) Disposal by Sale. 28 (b) Disposal by Exchange or Donation 28 (c) Disposal by Transfer. 28 (d) Donor Notification. 28 8.5 Acquisitions, Loans, and Destructive Analysis of Collections. 29 ARTICLE 9 TECHNICAL APPEAL PROCESS 9.1 Technical Appeal Process. 29 ARTICLE 10 NEW FACILITIES OPERATING AND MAINTENANCE COSTS 10.1 New Facilities Operating and Maintenance Costs 29 ARTICLE 11 ADMISSIONS 11.1 Admissions 29 5 11.2 Access. 30 11.3 Admissions Tax. 30 ARTICLE 12 PURCHASES OF SUPPLIES AND SERVICES 12.1 Purchase of Supplies and Services 30 12.2 Contacting Historically Underutilized Businesses 30 12.3 Expenditures in Excess of Ten Thousand Dollars ($10,000) 31 12.4 CCMJV Municipality Status 31 ARTICLE 13 FACILITY IMPROVEMENTS AND ALTERATIONS 13.1 Facility Improvements and Alterations 31 13.2 Facility Improvement Plan 31 13.3 Facility Improvements Approval Process. 31 13.4 Approved Facility Improvements and Alterations 32 13.5 Title to Improvements 32 13.6 CCMJV's Personal Property . 32 ARTICLE 14 ENGINEERING, STRUCTURAL AND LAYOUT STUDIES 14.1 Structural Engineering Report. 32 14.2 Studies 33 ARTICLE 15 ADVERTISING 15.1 Museum Advertisement. 33 15.2 Advertisement Reimbursement 33 ARTICLE 16 NAMING RIGHTS 16.1 Museum Name. 33 16.2. Donation Acknowledgement. 33 ARTICLE 17 MAINTENANCE 17.1 General Maintenance 33 17.2 Random Inspection. 34 17.3 In -Kind Maintenance. 34 6 17.4 Contractor Insurance 34 ARTICLE 18 STAFFING AND EMPLOYEES 18.1 Generally 34 18.2 CCMJV Supervision of Employees. 34 18.3 Employees 35 18.4 Employee Transition Plan 35 18.5 Payroll and Taxation 35 (a) City Payroll Until Transition 35 (b) CCMJV Payroll After Transition. 35 ARTICLE 19 GOVERNANANCE 19.1 Governance. 35 ARTICLE 20 ROLES 20.1 Advisory Board 36 20.2 General Manager 36 20.3 Museum Director. 36 20.4 Museum Collection Manager 36 20.5 Museum Registrar 36 20.6 Museum Librarian 36 20.7 Museum Educator (Head Curator) 37 20.8 Museum Education Assistant 37 20.9 Science Exhibit Project Manager 37 20.10 History Exhibit Project Manager. 37 ARTICLE 21 PROFESSIONAL STAFF 21.1 Minimum Professional Staff. 38 21.2 Modification of Minimum Professional Staff 38 21.3 Minimum Qualification and Experience for Professional Staff 38 (a) Museum Director's Minimum Qualifications. 38 (b) Museum Collection Manager Minimum Qualifications 38 (c) Museum Registrar Minimum Qualifications 38 7 (d) Museum Librarian Minimum Qualifications 38 (e) Museum Educator Minimum Qualifications. 39 (f) Museum Educator Assistant Minimum Qualifications. 39 (g) Science Exhibit Project Manager Minimum Qualifications 39 (h) History Exhibit Project Manager Minimum Qualifications. 39 21.4 Waiver of Minimum Qualifications 39 ARTICLE 22 FISCAL MATTERS 22.1 Capital Campaign. 39 22.2 Miscellaneous Fees and Prices 39 22.3 Franchises or Concessions. 40 22.4 Solicitation of Private and Public Funding. 40 22.5 Grant Funding. 40 ARTICLE 23 PROHIBITED TRANSACTIONS AND BENEFITS 23.1 Benefits to Organizations 40 23.2 Memberships 40 23.3 Benefits to Individuals. 40 ARTICLE 24 REVENUE 24.1 Revenue Account 41 24.2 Revenue Withdrawals. 41 24.3 General Fund Revenue 41 24.4 Gross Revenue Deficiency 41 24.5 Proportionate Year 41 ARTICLE 25 FACILITY IMPROVEMENT REIMBURSEMENT 25.1 Excess Revenue. 42 25.2 No Excess Revenue. 42 25.3 Long Term Plan 42 25.4 Unreimbursed Facility Improvement Expenditures 42 8 ARTICLE 26 MANAGEMENT FEE 26.1 Management Fee 42 ARTICLE 27 REPORTING OBLIGATIONS 27.1 Annual Report for Financial Accounting 43 27.2 Annual Plan 43 27.3 Supplementary Reports 43 (a) Quarterly. Reports. 43 (b) Annual Report for Expenditures 43 (c) Monthly Report. 43 27.4 Annual Independent Audit. 43 27.5 Reconciliation of Accounts. 43 ARTICLE 28 BOOKS AND RECORDS 28.1 Financial Records. 44 28.2 City Audit Participation. 44 ARTICLE 29 CCMJV CODE OF ETHICS 29.1 CCMJV Code of Ethics. 44 29.2 Ethics Report 44 ARTICLE 30 INSURANCE 30.1 Liability Insurance. 44 (a) Commercial General Liability Insurance. 44 (b) Business Automobile Liability Insurance. 45 (c) Liquor Liability Insurance 45 (d) Crime and Fidelity Coverage 45 (e) Workers' Compensation and Employers' Liability. 45 30.2 Policy Rating and Primary Insurance Requirements. 45 30.3 Policy Requirements. 45 30.4 Proof of Policy 46 30.5 Request of Policy. 46 9 30.6 Commencement of Work 46 30.7 Primary Insurance. 46 30.8 Liability Insurance Modification. 47 30.9 Policy Renewal. 47 30.10 Failure to Insure 47 30.11 Property Insurance. 47 30.12 Business Interruption Insurance 47 30.13 Waiver of Subrogation. 47 30.14 Payment of Damages. 47 30.15 Report of Accident 47 30.16 Proceeds of Casualty Insurance. 48 ARTICLE 31 REPRESENTATIONS AND WARRANTIES 31.1 Representations and Warranties 48 (a) Mission 48 (b) Formation 48 (c) Authority 48 (d) Conflicts and Consents 49 (e) Conflict with Orders, etc 49 (f) Litigation 49 ARTICLE 32 FORCE MAJEURE 32.1 Force Majeure. 49 ARTICLE 33 INDEMNITY 33.1 Indemnification and Hold Harmless. 50 33.2 Relationship to Insurance Obligations 50 ARTICLE 34 DEFAULT; TERMINATION OF AGREEMENT; REMEDIES 34.1 Termination by City 50 34.2 Termination by CCMJV. 51 10 ARTICLE 35 SURRENDER OF PREMISES 35.1 Surrender of Premises; Transition. 51 ARTICLE 36 HAZARDOUS MATERIALS 36.1 Definitions. 52 (a) "Environmental Laws" 52 (b) "Hazardous Material" 52 (c) "Release" 52 36.2 No Hazardous Materials. 52 36.3 CCMJV's Environmental Indemnity 53 ARTICLE 37 AS SIGNMENTS; SUBCONTRACTING 37.1 Assignments; Subcontracting 53 ARTICLE 38 NOTICES 38.1 Notices. 53 ARTICLE 39 COMPLIANCE WITH LAWS 39.1 Generally 54 39.2 Preexisting Conditions. 54 39.3 Americans with Disabilities Act. 54 39.4 Non - Discrimination Ordinances. 55 ARTICLE 40 TAXES, ASSESSMENTS, LICENSES, PERMIT FEES, AND LIENS 40.1 Taxes, Assessments, Licenses, Permit Fees, and Liens. 55 40.2 Sales Tax 55 40.3 Unpaid taxes. 55 ARTICLE 41 MISCELLANEOUS 41.1 Liability of the City 55 41.2 Liability of CCMJV. 56 41.3 Liens. 56 11 41.4 Parties and Their Agents. 56 41.5 Dispute Resolution 56 41.6 No Implied Waiver. 56 41.7 Headings and Subheadings. 57 41.8 Successors and Assigns. 57 41.9 Access to Museum. 57 41.10 Relationship of Parties. 57 41.11 Agreement Made in Texas. 57 41.12 Integrated Agreement; Modification 57 41.13 Counterparts 57 41.14 Exhibits. 57 41.15 Non - Liability of Officials, Employees, and Agents. 57 41.16 Time of Essence 58 41.17 Survival of Indemnities 58 41.18 Good Faith Dealings. 58 41.19 Severability 58 EXHIBITS Exhibit A - Museum Premises Exhibit B - Museum Parking Lot Diagram Exhibit C - Current Accreditation and Certification Exhibit D - Licenses and Permits Exhibit E - Collection Management Policy Exhibit F - Museum Deaccession Process Exhibit G - Technical Appeal Process Exhibit H - Admission Fees Exhibit I - Capital Improvement Process Exhibit J - Governance Exhibit K - City Wide Insurance Policy Coverage Exhibit L - Museum Value for City Insurance Policy Coverage Exhibit M — Facility Use Policy Exhibit N — Energy Cost Savings Guarantee 12 CORPUS CHRISTI MUSEUM OF SCIENCE AND HISTORY PROFESSIONAL SERVICE MANAGEMENT AGREEMENT This Corpus Christi Museum of Science and History Professional Service Management Agreement (the "Agreement ") is entered into as of the day of 2012,between the CITY OF CORPUS CHRISTI, a Texas home rule municipal corporation (the "City ") and Corpus Christi Museum Joint Venture, LLC, a Texas limited liability company ( "CCMJV "). RECITALS I. The City, acting through its duly authorized City Manager ( "City Manager "), currently owns the Corpus Christi Museum of Science and History (the "Museum "), together with all facilities, machinery, attachments, appurtenance, collections, artifacts, and exhibits, located in the City of Corpus Christi. The Museum is located at 1900 N. Chaparral Street owned by City and described in greater detail in Exhibit "A ", which is attached; and II. CCMJV is an organization whose principals have substantial experience and expertise in the management, operation, and marketing of amusement services; and III. The Corpus Christi Museum of Science and History Advisory Board, as set forth in the Board minutes of the 7th day of June, 2012, approved a recommendation to the City Council supporting a process that results in a 24 month private /public partnership to operate the Museum with the following stipulations: - Mission of the Museum will be sustained - City retains ownership of Museum land, facilities, and structures - City retains ownership of Museum collections which must remain accessible to the public - City holds the 2012 budget flat for 24 months to support the Museum - City annually budgets HOT tax funding to support Museum advertising - The Museum must be operated in a manner that sustains accreditation by the American Association of Museums and certification as an archeological repository by the Texas Historical Commission; and VI. It is the City's intention that the Museum be operated in a First -Class and fiscally responsible manner with the objectives of creating a modern edutainment Museum that will appeal to both children and adults while maintaining the established history and science mission of the Museum, as well as the certification and accreditation; minimizing financial operating requirements required from public funds; and, in general, maximizing the utilization of the Museum for the benefit of the City, while minimizing, to the extent practical, the net cost to the City. NOW, THEREFORE, in consideration of the mutual promises and undertakings set forth and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 13 AGREEMENT ARTICLE 1 DEFINITIONS As used in this Agreement, the following terms shall have the following meanings: "Advisory Board" shall mean the Corpus Christi Museum of Science and History Advisory Board assembled under the authority of City Ordinance 2 -90. The Advisory Board is assembled to serve as an advisor to the Museum department and to the City Council in matters of support and development of the Museum. The board may adopt comprehensive policies relating to the management of collections, acquisitions for the collections, disposition and the deacquisition of objects in and for the collection, and use of Museum facilities. "Affiliate" shall mean with respect to any corporation, partnership or other entity, any other such entity which is and at all times remains Controlled (as hereinafter defined) by, under common Control with or which Controls the first such entity, and (ii) "Control" means direct or indirect ownership of not less than 10% of all the voting stock of a corporation or not less than 10% of the legal and equitable interest in a partnership or other entity or the ability to direct management, operations or policy decisions of such corporation, partnership or other entity. "Annual Report" shall mean the annual report prepared by CCMJV setting forth a summary of the operations of the Museum and the services provided by CCMJV for the preceding year, along with information regarding plans for the upcoming report year, as further described in 27.1 below. "AAM" shall mean the American Association of Museums or its successor as the nationally recognized agency for accrediting Museums. "Auxiliary" shall mean the Auxiliary of Corpus Christi Museum, an incorporated non - profit organization that is organized to assist the Director of Museum and Professional Staff in carrying out the functions of the institution. "Business Day" shall mean any day on which banks in the State of Texas are open for business, excluding Saturdays and Sundays. "Capital Campaign" shall mean an intensive fund raising effort designed to raise a specified sum of money within a defined time period for facility improvement to the Museum. These facility improvements can include the construction of new buildings, renovation or enlargement of existing buildings, purchase or improvement of land, acquisition of furnishings or equipment, and additions to endowment. "Code" shall mean the City of Corpus Christi Municipal Code, as it may be amended from time to time. "City" shall mean the City of Corpus Christi, Texas and all of its boards, commissions, departments, agencies and other subdivisions. 14 "City Council" shall mean the City Council of the City of Corpus Christi, Texas. "City Documents" shall mean City- created records and City -owned records pertaining to operation and management of the Museum that, on the Effective Date of this Agreement are in the City's custody. "City Employees" shall mean those persons who are and continue to be regularly employed in a part-time or a full -time job by the City in positions authorized in the "Corpus Christi Museum of Science and History" Program in the applicable, current City of Corpus Christi adopted budget. "City Manager" shall mean the City Manager of the City of Corpus Christi or the City Manager's designee. "Collection Committee" shall mean the committee responsible for accession and deaccesion of Museum Collections. The Collection Committee is made up of the Museum Collection Manager, Museum Librarian, Museum Registrar and the Museum Director, or as modified by Article 8 and Article 21 of this Agreement. "Collection Fund" shall mean an account which funds are only available for the purchase of Museum Collection objects. "Depository" shall mean the place agreed to by the City and CCMJV, in which the bank accounts for the funds required to be maintained under this Agreement are to be deposited. "Effective Date" shall mean September 1, 2012, or whatever later dates the City Manager and CCMJV agree to but in no event later than the date of last signature. "Emergency Expenditure" shall mean any expenditure to the extent not included within an approved budget and not expected by CCMJV to be incurred but which is necessary to correct any condition that poses an imminent threat to public safety or material damage to the Museum. "Employee Transition Plan" shall mean the plan adopted by the parties pursuant to Article 18 of this Agreement. City and CCMJV acknowledge and agree that cost savings with respect to the continued First -Class operations of the Museum can occur as a result of the Employee Transition Plan. "Facility Improvement Expenditures" shall mean all City Manager approved expenditures for building additions, alterations, renovations, repairs or improvements, and for purchases of permanent fixtures, machinery or equipment. "First - Class" shall mean quality of the best; the finest; the highest class, grade, or rank; and highest distinction with respect to the operation, management, marketing, and promotion of the Museum, including but not limited to: professional promotion and marketing efforts; service - oriented guest and tenant services; premium food and beverage services; timely repairs, 15 maintenance, and cleaning of building, equipment, and grounds; positive, safe and secure Museum for patrons and employees. "Fiscal Year" shall mean a 12 -month period beginning on August 1 of each calendar year and ending on July 31 of the following calendar year. The City may change its Fiscal Year in which case the city must notify CCMJV of the change in writing at least 120 days before the end of the Fiscal Year in which the change will occur and the definition of Fiscal Year in this Agreement shall automatically change to reflect the new definition of the City's Fiscal Year. "Friends of the Museum" shall mean the Friends of the Corpus Christi Museum, an incorporated non - profit profit organization that is organized to support and aid the Corpus Christi Museum of Science and History. "General Manager" shall mean the manager of the Museum employed by CCMJV to manage the Museum's finances, marketing and revenue generating operations. "Gross Revenue" shall mean all revenues excluding sales tax, from whatever source, received by CCMJV or the City from or in respect of the operation of the Museum and from any income generating activity associated with the Museum, including but not limited to the following: a) All revenues received from admission fees, concessions, rental events, and fees and charges for all other goods and services provided to the public at the Museum; b) membership fees received by CCMJV; c) all revenue from vending machines and the selling price of all merchandise sold in, on, about or from the Museum in the ordinary course of business; provided, however, that, with respect to revenue and sales of merchandise by vending machines not owned by or leased to CCMJV, only the amount paid to CCMJV on account of such sales shall be included; and d) all other charges of any character made by CCMJV for the rendering of any service or goods or work of any kind conducted in, on, about or from the Museum. Except for "basic" membership fees, as set forth in subsection (b) above, "Gross Revenue" shall not include contributions, donations, pledges, or other gifts made by third parties to the Museum or CCMJV that are not derived directly from the services provided by CCMJV related to the Museum. "Gross revenue" shall not include funds received by CCMJV from the City including Operational Support Payments. "Gross Revenue Benchmark" shall mean the projected Gross Revenue for the 2013 Fiscal Year and the 2014 Fiscal Year. The Gross Revenue Benchmark is $318,295 for the 2013 Fiscal Year. The Gross Revenue Benchmark is $347,231 for the 2014 Fiscal Year. "Gross Revenue Deficiency" shall mean the difference between the Gross Revenue Benchmark and the Gross Revenue in a Fiscal Year in which Gross Revenue does not exceed the Gross Revenue Benchmark. "Internal Strategic Objectives" shall mean the thoughtfully constructed plan employed to achieve the Museum's Mission. 16 "Long -Range Plan" shall mean a Long -Range Plan for multi -year operation of the Museum, including the Museum's Mission, vision, goals, and objectives. The Long -Range Plan is obligated to address maintaining the Museum's accreditations and certifications. The Long - Range plan should integrate financial plans, development plans, interpretive plans, and collections plans. "Management Fees" shall mean those fees payable to CCMJV under Article 26 in consideration for management services provided. "Museum" shall mean the Museum of Science and History and related facilities operated on the Premises, which is the subject of this Agreement. "Museum Collection" shall mean objects that form the core of the Museums activities for exhibitions, education, research, etc. All objects in the Museum Collection are included in the Museum Inventory referenced in Article 8. "Museum Collection Manager" shall mean the Museum employee responsible for supervising all aspects of collection care and collection inventories including managing acquisitions, accessions, and standardization of the collection catalogue. "Museum Department" shall mean City's Department of Museum. "Museum Director" shall mean the director of the Museum, being a museum professional, maintains the mission of the Museum, as well as the certification and accreditation. "Museum's Mission" is defined in Article 5.2. "Museum Purposes" shall mean all purposes related to Museum operations and development either on the Premises or elsewhere, including but not limited to charitable, scientific, educational, archeology programs, activities, events, grounds, gardens, parks, exhibits, and research. "Operating Expenses" shall mean all operating and maintenance expenses incurred by CCMJV in the operation of the Museum, including without limitation the following: a) salaries, payroll taxes, and other payroll expenses; b) charges for utility services; c) expenses for repair and maintenance of equipment and furnishings; d) expenses for maintenance and repair and for cleaning of the Museum, including but not limited to expenses related to vandalism or other damage to gates, equipment, supplies, or the Museum Premises or Property; e) the cost of supplies, equipment, and animals; f) the cost attributable to noncapital replacement of equipment and animals; g) license and permit fees; 17 h) the cost of insurance attributable to insuring the Property and insuring CCMJV against liability relating to the management and operation of the Museum; i) the cost of Workers' Compensation Insurance for employees of CCMJV; j) deductible amounts required and actually spent under any insurance policies; k) amounts paid by CCMJV in reasonable settlement of claims against CCMJV that are not paid by insurance carriers; 1) maintenance and repair of grounds, gardens, and adjacent parks and landscape areas; and m) any other expense approved by the City Manager. "Operations Manual" shall mean a document developed by CCMJV which contains terms regarding the management and operation of the Museum, including detailed policies and procedures to be implemented in operating the Museum, as agreed upon by both the City and CCMJV. The parties acknowledge that to the extent that such manual contains any proprietary information of CCMJV (e.g., CCMJV -wide (not Museum - specific) operating policies, procedures and/or software); such information shall remain the property of CCMJV and shall not be kept at the Museum after the expiration or termination of this Agreement. "Operating Support Payment" shall mean all funding to be provided by the City to CCMJV pursuant to Article 5 of this Agreement in consideration for operation support provided to the Museum by CCMJV. "Outside Caterers" shall mean any caterer entering into an Outside Catering Agreement to provide catering services at the Museum for a single event. CCMJV will establish minimum commissions and /or fees, insurance and security deposits required in order for an Outside Caterer to operate at the Museum. Outside Caterer will pay CCMJV immediately following their catering event based on the Outside Catering Agreement with that Outside Caterer and CCMJV. "Outside Catering Agreement" shall mean the written agreement between CCMJV and an Outside Caterer for a single event to be held at the Museum. "Parking Lots" shall mean any and all existing and future parking facilities that serve the Museum as shown in Exhibit "B" which the parties may amend from time to time. "Personal Property" shall mean the personal property described in Article 3.2 below. "Personal Property Expenditures" shall mean all expenditures for additional or replacement furniture, fixtures, machinery or equipment which are not a permanent fixture to the Museum. "Preexisting Condition" shall mean any condition of disrepair, structural weakness, latent defect or other fault of any part of the Property, or any noncompliance of any part of the Property with any applicable local, state or federal law, that existed on or before the Effective Date of this Agreement, except that such condition or noncompliance is not a pre- existing condition if either party knew of its existence on or before the Effective Date of this Agreement. 18 "Premises" shall mean the real property and improvements described in Article 3 below. "Property" shall mean the Premises and the Personal Property, collectively. "Routine Repair and Maintenance" shall mean all ordinary maintenance and repair of the Museum facilities and equipment, and replacement of supplies that are normally performed on a day -to -day, periodic, or routine basis in order to keep such facilities and equipment in a good, clean, efficient, and safe condition. "Routine Repair and Maintenance" shall include such minor improvements to the grounds, gardens, adjacent parks and landscaped area, the buildings, structures, equipment, and facilities of the Museum as are necessary in the reasonable discretion of CCMJV to improve appearance and management. "Transferred Employees" shall mean those persons who elect Museum - related employment with CCMJV pursuant to the Employee Transition Plan. "THC" shall mean the Texas Historical Commission or its successor as the state agency for historic preservation. ARTICLE 2 INTRODUCTION 2.1 Term. The term of this Agreement (the "Term ") begins on September 1, 2012 (the "Effective Date "), and ends on August 31, 2014 (the "Termination Date "), unless sooner terminated as provided in this Agreement. 2.2 Option to Extend Terms. The Term of this Agreement may be extended as may be mutually agreed to by CCMJV and the City, but not less than five (5) years beyond the Termination Date. 2.3 Grant of Authority. To enable CCMJV to perform its obligations under this Agreement, the City hereby grants to CCMJV, and CCMJV hereby accepts, the exclusive right and obligation subject to the provisions of this Agreement, in its own name, as an independent contractor and not as an agent of the City, to manage and operate the Museum. 2.4 Nature of Relationship. The parties agree that the only relationship created by this Agreement is that between the City, as owner, and CCMJV, as an independent contractor, for management and operating services and that CCMJV is an independent contractor, not an agent, employee, joint venturer or partner of the City. 2.5 Contract Administrator. Each party must appoint a Contract Administrator who shall monitor such party's compliance with the terms of this Agreement. CCMJV's Contract Administrator shall be its General Manager at the Museum, unless CCMJV notifies City of a substitute Contract Administrator in writing. City Manager shall notify CCMJV of the name of its Contract Administrator within thirty (30) days of execution hereof. Any and all references in this Agreement requiring CCMJV or City participation or approval shall mean the participation or approval of such party's Contract Administrator. 19 ARTICLE 3 MANAGEMENT AND OPERATION OF PREMISES AND PERSONAL PROPERTY 3.1 Premises. Subject to the terms, covenants, and conditions set forth in this Agreement, CCMJV shall exclusively manage and operate the Museum, comprising (a) Museum and all facilities as described in Exhibit A ( "Current Museum Premises "), and (b) the parking lot as described in Exhibit B. Together the Current Museum Premises and the parking lot shall be referred to collectively in this Agreement as the "Premises." 3.2 Personal Property. Subject to the terms, covenants, and conditions set forth in this Agreement, the City agrees to provide, at no cost to CCMJV, use of personal property located at the Museum necessary to the operation and maintenance of the Museum other than City Documents, the City vehicle, and forklift. CCMJV shall maintain all such Personal Property in good condition and repair, subject to Preexisting Conditions, and shall replace with items of good quality any of the Personal Property that becomes inoperable or unusable if such item is necessary for the operation of the Museum in CCMJV's reasonable discretion. The City will provide CCMJV with a video inventory of the Personal Property located at the Museum. Transferred Personal Property shall remain property of the City. (a) Vehicle and Forklift Assigned to Museum. The Vehicle and Forklift Assigned to the Museum shall not be transferred to CCMJV. Such vehicle and forklift shall remain at the Museum until the end of the Employee Transition Period. The vehicle and forklift shall only be used by qualified City Employees. City employees shall only use the vehicle and forklift for the performance of Museum or City duties. At the end of the Employee Transition Period, the City shall remove the vehicle and forklift from the Museum. 3.3 Use of the Premises. (a) Required Use. CCMJV shall use and continuously occupy the Property during the Term of this Agreement for the operation of a public museum and related and incidental purposes and programs, including but not limited to conservation, education, enterprise operations, and visitor services, in accordance with this Agreement, the Museum's Mission and the Long -Range Plan. Notwithstanding the above, the parties intend that the Museum can also be used as an event space for catered groups, weddings, business meetings, and similar high margin events. (b) Prohibited Use. The Museum may not be used in any way prohibited by policy adopted by Advisory Board and approved by the City Manager. Current policy is shown in Exhibit M and is subject to change. Any dispute concerning prohibited use will be resolved by decision of the City Manager. (c) No Illegal Uses or Nuisances. CCMJV shall not use or occupy any of the Premises, and shall not permit the use or occupancy of it, in any unlawful manner or for any illegal purpose, and shall not permit to be carried on any activity that would constitute an actionable nuisance under the laws of the State of Texas. CCMJV shall take all 20 reasonable precautions to eliminate any nuisances or hazards relating to its activities on or about the Premises, except as to Preexisting Conditions. 3.4 Parking Lot Use. CCMJV shall share the Museum parking lots with SMG and the American Bank Center. CCMJV shall not block off or barricade the Museum parking to prevent access by SMG or American Bank Center patrons. CCMJV shall not be responsible for existing violations of the Code or any other local laws regarding the Museum Parking Lot. 3.5 Occupancy Hours. CCMJV can only occupy the Museum during the Occupancy Hours of 6:00 am to 7:00 pm. CCMJV may occupy the Museum outside the Occupancy Hours upon giving the City notice within two weeks of the planned usage. The notice shall state the date or dates and times of operation CCMJV wishes to occupy the Museum. CCMJV shall occupy the Museum for the hours provided in the notice. CCMJV may also seek to alter occupancy hours upon giving the City notice within two weeks of the planned change. The notice shall state the new Occupancy Hours. CCMJV can only occupy the Museum during the Occupancy Hours in the notice. All notices shall be in writing. All notices shall include a reminder to the City Manager that the planned usage is to be submitted to McKinstry Essention Inc. in writing within two weeks of the usage change. CCMJV will be responsible for all expenses associated with modifying Occupancy Hours including electricity. ARTICLE 4 EXISTING THIRD -PARTY AGREEMENTS 4.1 Existing Third -Party Agreements. The Parties specifically acknowledge that there are existing leases, agreements, and arrangements between the City and third parties for the Museum or between CCMJV and third parties. CCMJV shall not interfere with non - assignable existing leases, agreements, and arrangements known to CCMJV between the City and third parties without written consent from the City. The City shall assign all such assignable leases, agreements, and arrangements affecting the Museum to CCMJV and CCMJV shall have the exclusive option (if the City had such option) of renewing such leases, agreements, and arrangements that expire during the term of this Agreement and any extensions, CCMJV is released from its obligation to make payments due after the effective date of this agreement or termination date of this agreement for assumed leases. City shall give CCMJV written notice of existing leases, agreements, and arrangements. ARTICLE 5 OPERATIONS 5.1 CCMJV Responsibility. CCMJV shall manage and operate the Museum as a museum, consistent with the Museum's Mission and Long -Range Plan, with emphasis on the Museum's scientific and educational purposes and programs. Management and operation of the Museum includes selection of new inter - active displays, reconfiguration of certain exhibits for presentations to the public, redesigning of floor layouts, devising a higher and best use for outdoor events, and designing special event spaces for both indoor and outdoor use. CCMJV is responsible for Operating Expenses including electricity. 21 5.2 Museum Mission. The mission of the Corpus Christi Museum of Science and History is to present the story of the cultural crossroads of the New World. With a unique confluence of natural history, science, people and environments, the South Texas area has served as a stage for the ongoing discovery of the Americas. Through innovative programs in history, culture, and science, the Museum is committed to enlarging a shared understanding of our history and heritage as well as the impact and importance of science to our lives. By telling this story, the Museum will inspire a thirst for knowledge, context, and understanding. (a) Internal Strategic Objectives. The following strategic objectives are used to operationalize the Museum Mission: (1) Corpus Christi Museum of Science and History will build programs around three basic themes: Humans, the Environment, and Science. (i) How has human migration, cultural encounters, and interactions shaped the unique human character of South Texas and, in turn, how has South Texas influenced the world? (ii) How have environmental features and resources been linked to the human migrations, settlements, and physical exploitation of South Texas resources? (iii)What does science tell us about the unique natural world of South Texas and how can we best conserve our unique resources? (2) The Museum will collect and preserve unique specimens, artifacts, and ephemera which illuminate our three basic themes and support innovative programming. (3) To create new knowledge, Museum Collections and resources will be shared with the public and researchers. (4) The Museum will promote an open and inclusive atmosphere of learning by encouraging the use of its physical facilities for special events, meetings, and other community gatherings. (5) The Museum will commit itself to sharing knowledge with the next generation by actively promoting programming and field trip policies which encourage participation by K -16 school groups. 5.3 City Operations Support Payments. (a) Operations Account. All Operation Support Payments shall be deposited in an account maintained in the Depository in the name of the City. CCMJV shall have the authority to withdraw from the Operations Account. Any balance shall be retained in the Operations Account as for reserve for payment of future Operating Expenses. If at the termination of the Agreement there shall be a balance in the Operations Account, CCMJV shall disburse such excess to the City on or before the fifteenth (15) day of such month. 22 (b) Operation Support Payment. The City shall pay CCMJV an Operation Support Payment for consideration of CCMJV providing operating services to the Museum. Operation Support Payments are to be used only to pay Operating Expenses. After the Effective Date, the City shall transfer to CCMJV an annual operations payment (the "Operations Support") equal to $1,059,077 for the first Fiscal Year of this Agreement and $1,209,140 for the second Fiscal Year of this Agreement. The Operations Support Payment shall be paid to CCMJV in four equal quarterly installments on or before the fifteenth (15th) day of each quarterly month. Each quarterly month is August, November, February and May. The first Operational Support Payment will be made on the Effective Date of this Agreement. (c) Advancing of Funds for Operation Support. If at any time during a particular quarter, the amount of monies on deposit in the Operation Support Payment and available for that purpose shall be insufficient for the payment of Operating Expenses then due or budgeted to become due during such quarter, CCMJV may present to the City Manager a request to advance the amount of such insufficiency from the approved budgeted payment scheduled to be paid in the succeeding quarter. If the City Manager approves the request, the advancement will be made. This advanced amount will then be subtracted from the scheduled Operation Support Payment for the succeeding quarter. If the City Manager disapproves, no advancement shall be made. (d) Modification of Operating Support Payment due to Wage Increase. If the City at any point grants City Employees a raise for the 2013 Fiscal Year, CCMJV's Operational Support Payment shall be increased by a budgeted estimate of the cost of the increased City Employees Salaries and Wages for each quarter. At the end of the employee transition period, the City shall calculate actual increases to City Employees Salaries and Wages and compare to the increase in Operational Support Payment. If the actual increase to City Employees Salaries and Wages is greater than the increase in Operational Support Payment, the following quarter's Operational Support Payment shall be increased by the difference. If the actual increase to City Employees Salaries and Wages is less than the increase in Operational Support Payment, the following quarter's Operational Support Payment shall be decreased by the difference. At the end of June 2013, the City shall calculate actual increases to City Employee Salary and Wage Expense for the City Employee remaining at the Museum after the Employee Transition Plan and compare to the increase in Operational Support Payment. If the actual increase to City Employee Salary and Wage is greater than the increase in Operational Support Payment the following quarter's Operational Support Payment shall be increased by the difference. If the actual increase to City Employee Salary and Wage is less than the increase in Operational Support Payment, the following quarter's Operational Support Payment shall be decreased by the difference. (e) Modification of Operational Support Payment due to Savings. The City entered into a design/build agreement for a fixed price energy performance contract with McKinstry Essention. Inc. (McKinstry). McKinstry guarantees energy savings for the Museum found in Exhibit N. If the actual energy savings exceed the projected energy savings in the McKinstry agreement for a Fiscal Year, the second quarterly Operational Support 23 (t) (g) Payment for the following Fiscal Year will be reduced by the excess savings. If McKinstry's projected savings are not realized in a Fiscal Year, the second quarterly Operational Support Payment for the following Fiscal Year shall be increased if CCMJV was not responsible for the failure for McKinstry's projected savings being realized. The second quarterly Operational Support Payment will be increased by the amount of the excess Electricity expense caused by the failure of McKinstry's projected savings to be realized. If CCMJV was responsible for the failure for McKinstry's projected savings being realized, Operational Support Payment shall not be increased. Increased electricity costs are subject to Article 5.3 (g). Over Budgeted Expenses. The City may request CCMJV's authorization to reduce the amount of Operational Support Payment due under the terms of this Agreement for Over Budgeted Expenses. CCMJV shall have the right to approve or deny the reduction of Operational Support Payment. Unbudgeted and Under Budgeted Expenses. CCMJV shall be responsible for Unbudgeted and Under Budgeted Expenses. CCMJV may present any Unbudgeted or Under Budgeted Expense to the City Manager for additional funds. The City Manager shall have the option to approve or deny increasing Operational Support Payment for Unbudgeted or Under Budgeted Expenses. 5_4 City Paid Expenses (a) City Employee Salaries and Wages. The City shall bill CCMJV monthly for Salaries and Wages paid to City Employees working at the Museum. CCMJV shall be responsible for any raises granted to City Employees after the Effective Date of this Agreement. (b) City Provided Services. The City will provide Municipal Information Systems Services, Building Maintenance Service, and Fleet Services. The City shall bill CCMJV monthly for these services. (1) Municipal Information Systems Services. The Municipal Information Systems (MIS) department shall assist in the delivery of quality products and services by managing the enterprise data centers and by providing connectivity & customer services that will allow for the optimum usage of enterprise data as well as effective and efficient data, voice and video communications at the Museum. The City shall bill CCMJV $2,671 monthly for services provided. (2) Building Maintenance Service. The City shall provide the labor for routine repairs and preventive maintenance for the Facility. CCMJV shall be responsible for supplying the parts for repairs and maintenance. The City shall bill CCMJV $1,275 monthly for services provided. (3) Fleet Services. The City shall provide a vehicle and fork lift to CCMJV for first six (6) months of this Agreement. The vehicle and forklift are to be operated only by qualified City Employees for Museum purposes. The City shall bill CCMJV $696 monthly for services provided. 24 (c) Electricity. The City shall pay the energy provider for Electricity provided to the Museum. For the Electricity invoices that the City pays directly, the City shall bill CCMJV monthly for reimbursement. (1) Conditions Affecting Electricity Usage. CCMJV shall immediately notify the City in writing with regards to any changes that will affect energy usage including occupancy or usage changes, computer load or other load changes, scheduling changes and sequence of operation changes. Such notice shall include a reminder to the City Manager that the changed usage is to be submitted to McKinstry Essention Inc. in writing within two weeks of the usage change. CCMJV will be responsible for all expenses associated with any changes that will affect energy usage. (2) McKinstry Essention Inc Notification. The City will notify McKinstry Essention Inc that CCMJV is taking over the management of the Museum and authorizing McKinstry to communicate with CCMJV in regards to the Energy Cost Saving Guarantee in Exhibit N. 5.5 City Procurements. (a) Computers Procurement. The City is a party to an Agreement for computers for the Museum. The City shall procure computers for the Museum during the term of this Agreement. The procurement includes four laptop computers with work station and six desk top work stations. CCMJV will have full use to the computers provided under the Agreement. The City shall bill CCMJV monthly for reimbursement for the procurement expense. (b) Multifunction Copier Procurement. The City is a party to an Agreement for a multifunction copier. The City shall procure a multifunction copier for the Museum during the term of this Agreement. CCMJV will have full use to the multifunction copier provided under the Agreement. The City shall bill CCMJV monthly for reimbursement for the procurement expense. (c) Dumpster Service Procurement. The City is a party to an Agreement for Dumpster Service. The City shall procure Dumpster Service for the Museum during the term of this Agreement. CCMJV will have full use to the Dumpster Service provided under the Agreement. The City shall bill CCMJV monthly for reimbursement for the for procurement expense. (d) Elevator Maintenance Procurement. The City is a party to Agreement for Elevator Maintenance. The City shall procure elevator maintenance for the Museum during the term of this agreement. The Museum elevators will be maintained during CCMJV operation of the Museum. The City shall bill CCMJV monthly for the procurement expense. 25 5.6 Museum Accounts. After the Effective Date of the Agreement, all Museum Accounts under the City of Corpus Christi shall be paid by the City. The City shall bill CCMJV monthly for reimbursement for Museum Accounts paid by the City. CCMJV may transfer or request the City to close these accounts. 5_7 Consolidated Bill. The City will generate a Consolidated Bill no later than thirty (30) calendar days after the month's end. The Consolidated Bill will itemize all City services, expenses and accounts paid for the Museum. CCMJV shall pay the Consolidated Bill fifteen (15) calendar days from the date of the invoice. 5.8 Water, Gas, and Waste Water. The City shall provide the Water, Gas, and Waste Water to the Museum. CCMJV is not responsible for Water, Gas, and Waste Water. 5.9 Proportionate Year. This section shall apply to the month of August 2014. All the conditions of Article 5 shall be proportionally applied. August 2014 conditions shall be proportionally applied based on the second Fiscal Year of this Agreement. ARTICLE 6 LONG -RANGE PLAN 6.1 Long -Range Plan. The Long -Range Plan is a tool to show how CCMJV will manage the Museum upon an extension or new contract to manage the Museum past the termination date. The Parties acknowledge that this Agreement contemplates the adoption by the City of the Long - Range Plan, created by CCMJV, on or before February 28, 2014. In the event that such a Plan is not adopted by August 31, 2014, CCMJV may choose not to extend this Agreement. ARTICLE 7 ACCREDITATION, CERTIFICATION, LICENSING, AND PERMITS 7.1 Required Accreditation and Certification. Throughout the Term (including any extensions), CCMJV shall cause the Museum to be at all times (a) accredited by the AAM; and (b) certified as an Archeological Repository by the THC. In addition, CCMJV shall be responsible for any reaccreditation and recertification that may be required during the term of this agreement. Any failure on the part of CCMJV to comply with this article shall constitute a material breach of this Agreement. Current accreditation and certification are shown in Exhibit C. 7.2 Licenses and Permits. All licenses and permits currently held by the City in connection with the operation of the Museum are shown in Exhibit D. Subject to any necessary approvals, the City agrees to transfer all such licenses and permits to CCMJV, and CCMJV and the City shall use their best efforts to either have those licenses and permits legally transferred to CCMJV or to have them canceled upon CCMJV's obtaining replacement permits or licenses in its name if transfer is not possible except that certain licenses and permits shall remain in the possession of the City and under the City's name, and CCMJV shall be authorized as the agent of the City to perform such services under such licenses and permits as are required in the operation of the Museum to the extent permitted by applicable law, if such licenses or permits are required to be 26 held by a governmental entity and /or owner of the Premises or for such other reasons as may be agreed to by the parties. Upon any termination of this Agreement for any reason, CCMJV shall transfer all licenses and permits back to the City and CCMJV shall use its best efforts to assist the City with the documentation of any such transfer or reapplication for any such permit or license to be held in City's name after such termination. 7.3 City Representations. City represents and warrants to CCMJV that the accreditation by the AAM and certification as an Archeological Repository by the THC, and all licenses and permits which are being assigned to CCMJV, are not currently in default, that City is not aware of any default that exists with respect to these items, that City has complied with the terms and conditions of the certifications, accreditations, licenses, and permits, and they are current with respect to any and all payments. ARTICLE 8 MUSEUM COLLECTION MANAGEMENT 8_1 Collection Inventory. CCMJV will be responsible for maintaining the inventory of the Museum's collections. The City will provide CCMJV with an electronic document and video inventory of the Museum's collection on record. In the event that there is a discrepancy between the video inventory and electronic document inventory, the video inventory shall control. 8.2 Collection Management Policy. The Museum's current Collection Management Policy was adopted September 2005. CCMJV shall follow the current Collection Management Policy in Exhibit E. Any provision in the Collection Management Policy that conflicts with this Agreement, the provision in this Agreement shall control. Any dispute regarding the Collection Management Policy can be submitted to the City Manager for approval. The City Manager's decision will be controlling as to any dispute. 8.3 Deaccession of Collection. Deaccession of a collection must follow the following procedure. A Collection Committee member shall submit the proposed deaccession to the Collection Manager. The proposal shall include the purpose, scope of the collection and the policy guidelines. The Collections Manager shall confirm title and check for any restrictions, legal issues, or ethical concerns regarding deaccession. After the Collection Manager's review, the Collection Committee reviews proposed deaccession based on the Museum's Mission, scope of the collection, and Collection Management Policy guidelines. The Collections Committee submits the proposed deaccesion and disposal method to the Museum Director for review. If the Museum Director disapproves of deaccession, the proposed item will remain in the collection. If the Museum Director approves deaccession, it shall be submitted to the Advisory Board for approval. If the Advisory Board approves, the proposed item will be deaccessed. If the Advisory Board disapproves of deaccession, it shall be submitted to the City Manager for the final decision on deaccession. The City Manager will make the final decision regarding whether the proposed item will remain in the collection or be deaccessed. The deaccession process is demonstrated in Exhibit F. 8.4 Deaccessioned Objects. Deaccessioned objects are removed from the collection by means of sale, exchange, donation, transfer, or destruction. Disposal of any deaccessioned object 27 will be carried out in accordance with all applicable federal, state, local, and international laws, treaties, and regulations including but not limited to laws protecting plants, wildlife, antiquities, historic properties, and the import, export, and transfer of cultural property. The Collection Manager is responsible for fully documenting disposal of objects. Deaccessioned objects will not be sold, or ownership otherwise transferred, to Museum staff, City of Corpus Christi employees, CCMJV employees, CCMJV members, CCMJV affiliates, Museum volunteers, members of Museum support groups, members of the Museum or City's governing authorities, or representatives or family members of these individuals. (a) Disposal by Sale. Net proceeds received from the sale of deaccessioned objects will be used only to acquire new objects for the collection. If there is any question as to the value of an object, CCMJV will get two informed outside appraisals on the object. These should document the object's authenticity and assure that CCMJV does not accept less than market value for the object. Disposal of objects from the collection will never be through the Museum shop, or in such a manner that it involves an interested entity helping in the liquidation of Museum assets. CCMJV shall collect & remit all applicable sales tax. Upon the sale of a deaccessed object, CCMJV shall open an account (Collection Fund) in the Depository in the name of the City. CCMJV shall have the authority to withdraw from the Collection Fund Account. Proceeds from the sale of an object will be placed in a Collections Fund. Proceeds from the sale of an object can only be used for purchasing acquisitions to the Museum's Collection. (b) Disposal by Exchange or Donation. Deaccessioned objects may be disposed of by exchange with, or transfer to, another appropriate museum, educational, or scientific institution. Deaccessioned objects will never be exchanged or donated to private individuals. (c) Disposal by Transfer. Deaccessioned objects may be transferred to the Museum's education department for use in educational programs. Objects subject to this action should have little or no market value, or historic or scientific significance. Any deaccessioned object transferred to the education department will be removed from collection storage, quarantine, or work areas. The object must be stored in an area dedicated to educational supply storage. The object is considered expendable and no longer a collection item. (d) Donor Notification. If the Museum disposes (by sale, exchange, or any other method) of a donation within two years of a donation, CCMJV is obligated to notify the donor and the IRS by filing form 8284. This provision applies if the donor has claimed a charitable deduction under Section 170 of the IRS code of more than $5,000 for either a single item or an aggregate of items donated to one or more institutions. The IRS code requires that if the value is more than $5,000, the donor must supply an appraisal summary to the Museum. Once the Museum establishes its clear and unrestricted title to an object, the donor has no legal interest in it. If a deaccession no longer falls under the statute of limitations of the Tax Reform Act of 1984, it is then only a practice of goodwill to notify the donor or heirs of the disposition of a collection or object. It is possible to label the 28 funds or new acquisition purchased with those funds as a gift from the donor. Appropriate action will be considered by the Museum Director on a case -by -case basis. 8_5 Acquisitions Loans and Destructive Analysis of Collections. All Acquisitions, Loans and Destructive Analysis shall be conducted in compliance with the Museum's currently adopted Collection Management Policy found in Exhibit E. ARTICLE 9 TECHNICAL APPEAL PROCESS 9.1 Technical Appeal Process. The Museum Director may challenge any proposed event or action made by CCMJV or the General Manager in matters conflicting with the Museum's Mission or that effect collections or exhibits. If the Museum Director and CCMJV or General Manager cannot resolve an issue regarding a proposed event or action in matters effecting the Museum 's mission, collection or exhibits, that issue is to be presented to the City Manager. Prior to making a decision on any issue, the City Manager will hear from both the Museum Director and the General Manager. The City Manager will make the final decision as regarding whether the proposed action or event does or does not commence. The technical appeal process is demonstrated in Exhibit G. ARTICLE 10 NEW FACILITIES OPERATING AND MAINTENANCE COSTS 10.1 New Facilities Operating and Maintenance Costs. As CCMJV funds and builds new exhibits and support and visitor facilities, the corresponding increases in operating, program, and maintenance costs will be the responsibility of CCMJV, with the City being the owner of such new exhibits and support or visitor facilities. CCMJV may request permission from the City Manager to use Operating Support Payment to pay for New Facilities Operating and Maintenance Costs. CCMJV must specify what new cost it seeks to pay with Operating Support Payment. Operation Support Payment can only be used for New Facilities Operating and Maintenance Costs approved by the City Manager. ARTICLE 11 ADMISSIONS 11.1 Admissions. Admission shall be set at their current rates shown in Exhibit H approved by the City Manager on August 19, 2010. The City Manager shall have the authority to set Museum admissions charges in accordance with City of Corpus Christi Code of Ordinance 36 -6. The Museum Director shall prepare such schedule which shall be submitted to the City Manager for approval, and such schedule shall be reviewed on an annual basis. Said fees and charges shall bear a reasonable relation to fees charged for admission to other similar attractions and similar 29 facilities, and shall be neither excessive nor grossly deficient by comparison; except that special provisions to assure access to all children shall be made, such as free periods of admission for children, and free admission for school groups. The approved schedule shall be filed with the City Secretary and copies shall be provided to the City Council. The City Manager's authority to approve such schedule of fees and charges shall include approval of discounts and special fees designed to promote the Museum and increase visitation, which may be accomplished through marketing agreements not exceeding three (3) years with other attractions or marketing companies whereby multiple attractions are packaged, or through other promotional plans customarily used for similar attractions and facilities. 11.2 Access. CCMJV agrees to operate the Museum with the goal of providing the widest possible access to the Museum to the general public, at an affordable cost. 11.3 Admissions Tax. The Parties acknowledge that no City admission taxes are currently charged on Museum admission. The Parties further agree that the Museum will continue to be exempt from City admission taxes, so long as similar facilities are exempt from such taxes. This is not a waiver of the City's portion of the applicable Sales Tax. ARTICLE 12 PURCHASES OF SUPPLIES AND SERVICES 12.1 Purchase of Supplies and Services. CCMJV shall have full authority and discretion as to the purchase of all equipment, materials, supplies, inventories and services reasonably required by it but shall endeavor to make all such purchases at the best price available as known to CCMJV, considering the quantities required and the quality desired, at the time available for the delivery and the sources of supply whenever possible as part of a volume purchase by CCMJV. CCMJV may acquire property or services from or otherwise transact business with its Affiliates for any of the goods to be purchased or services to be performed by it under this Agreement but only if the prices charged and services rendered are competitive with those obtainable from others rendering comparable services in the field. To insure compliance in this respect, CCMJV agrees to obtain at least two (2) other competitive bids from persons other than CCMJV's Affiliates, whenever CCMJV considers transacting business with an Affiliate for providing goods or services under this Agreement. All purchases by CCMJV of permanent fixtures, equipment, and all facility improvements shall be made in the name of the City. CCMJV shall establish an inventory control system to account for all such purchases. The City shall have the right to inspect the books and records of CCMJV to verify CCMJV's compliance with the provisions of this section. 12.2 Contacting Historically Underutilized Businesses. CCMJV shall, in making an expenditure of more than $3,000 but less than $50,000, shall contact at least two historically underutilized businesses on a rotating basis, based on information provided by the comptroller pursuant to Chapter 2161, Government Code and in compliance with Texas Local Government Code §252.0215. If there are more than two such businesses in the county, CCMJV can contact the listed businesses on a rotating basis. If the list fails to identify a historically underutilized business in Nueces County, CCMJV is exempt from contacting at least two historically 30 underutilized businesses. Any such notice shall be sent by certified mail and CCMJV shall keep record of all notices for four (4) years after the termination date of this agreement. 12.3 Expenditures in Excess of Ten Thousand Dollars ($10,000). CCMJV shall, in making expenditure in excess of $1.0,000 for any single item or more than $50,000 in the aggregate in any purchase order, utilize a competitive bidding process similar to that used by the City. CCMJV shall not avoid the application of competitive bidding by purposely dividing a single purchase into smaller components so that each component purchase is less than $50,000 or make component, sequential or incremental purchases to avoid the competitive bidding requirements. CCMJV shall make the purchase that offers the "best value" for the Museum. In consideration of "best value" CCMJV may consider the following factors: the purchase price; the reputation of the bidder and of the bidder's goods or services; the quality of the bidder's goods or services; the extent to which the goods or services meet the Museum 's needs; the bidder's past relationship with the Museum or City; the total long -term cost to the Museum to acquire the bidder's goods or services; and any relevant criteria specifically listed in the request for bids or proposals. 12.4 CCMJV Municipality Status. To the extent allowable under federal, state, and local law, City agrees to allow CCMJV to use its tax status as a municipality for the purchase of supplies and services. City agrees to execute such documents as may be required, and which the City is authorized to execute, to further this Agreement. ARTICLE 13 FACILITY IMPROVEMENTS AND ALTERATIONS 13.1 Facility Improvements and Alterations. CCMJV shall not under any condition make any facility improvement or alteration to the Museum, the Museum facilities, or Premises without prior approval from the City Manager. Any alterations or facility improvements made by CCMJV to or on the Museum must be approved by City Manager. 13.2 Facility Improvement Plan. CCMJV shall submit a Facility Improvement Plan to the City Manager for any facility improvement CCMJV wishes to commence. Such plan shall include a listing of the facility projects or equipment to be purchased, the projects ranked in order of preference, a timetable for the construction or completion of the project, a work schedule and time line to minimize disruptions of Museum operation during the completion of the improvements, justification for the project, an examination of the feasibility of the improvement and an explanation of expenses for the project. The plan shall also include a reminder to the City to submit the approved plans to McKinstry Essention Inc. for an energy usage evaluation. The reminder shall also notify the City that the plan is to be submitted to McKinstry Essention Inc. in writing within two weeks of the change to the facilities. CCMJV shall submit the Facility Improvement Plan for the 2013 Fiscal Year within forty five (45) days from the Effective Date of this Agreement. CCMJV shall submit the Facility Improvement Plan for 2014 Fiscal Year with the Annual Plan under Article 27. 13.3 Facility Improvements Approval Process. The General Manager and Museum Director shall develop a timeline for operations and facility improvement phases including a work schedule and time line to minimize disruptions of Museum operation during the completion 31 of the improvements. If the Museum Director does not approve of Facility Improvement Plan, the Museum Director shall follow the Technical Appeal Process in Article 9. If the Museum Director has no objections or the City Manager approves after the appeal process, CCMJV must present the Facility Improvements Plan to the Advisory Board for review. The Advisory Board will submit to the City Manager a recommendation. The City Manager will submit the plan to the City Engineering Department for review. The Structural Engineering Report required under Article 14 must be submitted to the City prior to the review of any project in the Facility Improvement Plan. The City Manager may approve or disapprove any project in the Facility Improvement Plan. If the City Manger does not approve, the facility improvements project will not proceed. If the City Manager approves a project, the first phase of improvement will begin. Upon completion, the City Manager will inspect first improvement phase. If the City Manager approves, CCMJV may be reimburse for Facility Improvement Expenditure in accordance with Article 25. If the City Manager does not approve, CCMJV shall make necessary corrections to gain approval. The Facility Improvement Process is demonstrated in Exhibit I. 13.4 Approved Facility Improvements and Alterations. Any alterations or facility improvements made by CCMJV to or on the Premises shall comply with any and all applicable local, state, and federal laws, rules and regulations, and CCMJV shall obtain any required permits for such alterations and facility improvements. Expenses for required permits shall be Facility Improvement Expenditures to be reimbursed under Article 25. Only Approved Facility Improvements shall be eligible for Facility Improvement Reimbursement. 13.5 Title to Improvements. Except as otherwise provided in this Agreement, all appurtenances, fixtures, improvements, equipment, additions, and other property attached to or installed in the Premises during the Term shall be and remain the property of City and shall not be removed by CCMJV without approval of the City Manager. 13.6 CCMJV's Personal Property. All furniture, furnishings, and articles of movable personal property installed in the Premises by or for the account of CCMJV, without expense to City, and which can be removed without structural or other material damage to the Premises (all of which are in this Agreement called "CCMJV's Property ") shall be and remain the property of CCMJV and may be removed by it subject to the provisions of Article 34. At least ten (10) days prior to delinquency, CCMJV shall pay all taxes levied or assessed upon CCMJV's Property and shall deliver satisfactory evidence of such payment to City. ARTICLE 14 ENGINEERING, STRUCTURAL AND LAYOUT STUDIES 14.1 Structural Engineering Report. CCMJV shall submit to the City a Structural Engineering Report evaluating the integrity of the building within the first Fiscal Year. The Structural Engineering report will be at the sole expense of CCMJV. Expenses for the Structural Engineering Report shall be a Facility Improvement Expenditure to be reimbursed under Article 25. Facility Improvements and Alterations will not proceed prior to completion of the Structural Engineering Report. 32 14.2 Studies. CCMJV shall notify the City Manager of all engineering, structural and layout studies of the Museum conducted by CCMJV at any time within 30 days of completion of the study. Any such study shall be provided to the City Manager within 30 days of request by the City Manager. Such studies shall be provided to the City free of cost. ARTICLE 15 ADVERTISING 15.1 Museum Advertisement. CCMJV may purchase or create advertisement for the Museum. Museum Advertisement materials should be presented in an objective, fair and accessible manner. Advertising campaigns should be justified and undertaken in an efficient, effective and relevant manner. All advertisements shall be in compliance with federal, state and local laws. 15.2 Advertisement Reimbursement. CCMJV shall keep record for all advertising expenditures and submit itemized expenditures to the City monthly. The City shall reimburse CCMJV up to $25,000 in advertising expenditures per Fiscal Year, subject to availability of funds in the Hotel Occupancy Tax fund. City agrees to submit this amount as part of the proposed budget for Hotel Occupancy and Tax fund. Reimbursement payment for advertising expenditure shall be made to CCMJV on or before the thirtieth (30th) day following the end of the Fiscal Year if available. ARTICLE 16 NAMING RIGHTS 16.1 Museum Name. Under no circumstances, with the exception of formal action by City Council, may the Museum's name be changed from "Corpus Christi Museum of Science and History ". 16.2. Donation Acknowledgement. Any donor recognition at the Museum shall be brought to the Advisory Board for review. The Advisory Board will submit to the City Manager a recommendation. If the City Manger does not approve, there will be no donor recognition. If the City Manager approves CCMJV may proceed with the donor recognition. CCMJV may seek to establish a naming policy for Museum facilities which would require Advisory Board adoption and City Manager's approval. ARTICLE 17 MAINTENANCE 17.1 General Maintenance. CCMJV shall be responsible for routine repairs, preventive maintenance, janitorial services, grounds keeping services, maintenance of all interior and exterior walls of the Facility, maintenance of the landscaping around the Facility; walking 33 inspections of the Facility on a daily basis, and grounds keeping of all the Parking Lots to City codes and standards. CCMJV shall maintain the Museum in a clean, safe, sanitary, and sightly condition, and as necessary to maintain all licenses and accreditations in accordance with Article 7 above; provided, however, that such obligation shall not, except as specifically set forth in this Agreement, require CCMJV to repair or otherwise remedy a Preexisting Condition. CCMJV shall employ sufficient personnel to maintain the Museum to the standard of a First -Class Museum. 17.2 Random Inspection. Random inspections will be made by a designated City employee to inspect the general maintenance of the Museum. Any deficiencies not to the standard established in Article 17.1 will be reported to CCMJV. CCMJV shall take the necessary action to remedy the deficiency in a timely fashion. 17.3 In -Kind Maintenance. In -Kind Maintenance can be provided by the City for repairs that are necessary for public health and safety. In -Kind Maintenance requires City Manager approval. At any time the Museum requires In -Kind Maintenance, the General Manager shall submit an In -Kind Maintenance request to the City Manager. Upon City Manager approval, the City shall make the necessary repairs. In -Kind Maintenance shall include City labor, materials, and indirect maintenance services in substantially the same manner of maintenance support that is currently provided by the City to the Museum. If the City Manager denies the In -Kind maintenance request, CCMJV shall be responsible for the repairs. 17.4 Contractor Insurance. Each party shall provide evidence acceptable to the other that every contractor engaged by a party to perform work on the Premises maintain insurance in amounts, on policies of coverage and offered by companies satisfactory to City and CCMJV, including but not limited to Workers' Compensation Insurance (including Employers' Liability Insurance) and insurance against liability for injury to persons and property arising out of all such contractor's operations, and the use of owned, nonowned, or hired automotive equipment in the pursuit of all such operations. ARTICLE 18 STAFFING AND EMPLOYEES 18.1 Generally. The Parties acknowledge that as of the date of this Agreement, there are approximately 17 full time City Employees employed in connection with the Museum. The Parties' intent is that the City Employees will remain at the Museum during the Employee Transition Period. At the end of the Employee Transition Period, City Employees shall be placed internally with the City, selected for hiring by CCMJV or terminated in compliance with the City's reduction of force policy. 18.2 CCMJV Supervision of Employees. Commencing on the Effective Date, CCMJV shall, in carrying out the responsibilities under this Agreement, manage, supervise, and direct those employees of the City who are employed at the Museum subject to the provisions of the City Charter, City Municipal Code, City rules, state legislation and any applicable collective bargaining agreements. The Museum shall operate under the Governance set out in Article 19. 34 CCMJV shall, in cooperation with the Human Resource Department and the City Manager, develop procedures for implementing this authority with regard to City Employees. 18.3 Employees. CCMJV shall comply with all applicable federal, state, and local laws, ordinances, and regulations pertaining to all employees at the Museum. In addition, CCMJV shall be an equal opportunity employer and make reasonable efforts to maintain a diverse work force. 18.4 Employee Transition Plan. CCMJV and the City will develop and propose an Employee Transition Plan and present it to the City Council by September 30, 2012. The proposed Employee Transition Plan will be accompanied by one or more proposed ordinances to implementing elements of the Employee Transition Plan that require such City Council action and to amending this Agreement accordingly. Although City Employees may voluntarily resign City employment and be hired by CCMJV, no City position existing in the "Museum Program" in the City's Adopted Budget as of the Effective Date of this Agreement will be eliminated nor an employee involuntarily transferred to CCMJV from these positions unless the change is adopted by the City Council by ordinances described above. 18.5 Payroll and Taxation. (a) City Payroll Until Transition. Until each City Employee leaves City employment, either to transition to CCMJV employment or otherwise, that employee will remain on the City payroll for the continued provision of City compensation and benefits, employee status, and payment of taxes and reporting, although the Museum Director will supervise them. (b) CCMJV Payroll After Transition. After each City Employee who chooses to transition to employment with CCMJV does so, CCMJV shall make or cause to be made all necessary payroll deductions for disability and unemployment insurance, Social Security, withholding taxes, and other applicable taxes, and prepare, maintain, and file or cause to be filed all necessary reports with respect to such taxes or deductions, and all other necessary statements and reports. ARTICLE 19 GOVERNANANCE 19.1 Governance. The. Museum shall be operated under the organizational chart set out in Exhibit J. The Governance can be changed if the Governance effects any accreditation or certification. The governance shall be modified to comply with any accreditation or certification standards. The Governance can be changed upon an agreement with CCMJV and the City. Any change in governance cannot effect any accreditation or certification. ARTICLE 20 ROLES 35 20.1 Advisory Board. The Advisory Board shall serve as an advisor to CCMJV and to the City in matters of support and development of the Museum. The board may adopt comprehensive policies relating to the management of collections, accession of objects for the collections, disposition and deaccession of objects in and for the collections, and use of Museum facilities. Any dispute with CCMJV and the Advisory Board shall be reviewed by the City Manager. The City Manager shall make the final decision regarding policy. 20.2 General Manager. The General Manager manages Museum's finances, marketing and revenue generating operations. General Manager's duties regarding the management of revenue generating operations include admissions, gift shop operation, food service sales, and hosting events. The General Manager can engage in fund raising activities on the behalf of the Museum. 20.3 Museum Director. The Museum Director is responsible for all core aspects of Museum operations including exhibits, collection, fund raising, maintenance, educational programs, accreditation and certifications. It is the director's responsibility to operate the Museum according to best Museum practices such that both accreditations by the AAM (reviewed in 2017) and archeological repository certification by the THC (reviewed in 2015) will be sustained. The Director ensures that the Museum operates in a manner that ensures that environmental and security standards associated with collection preservation continues to be maintained. 20.4 Museum Collection Manager. The Museum Collection Manager maintains collection catalog and object files and makes the collection catalog data publicly accessible. The Museum Collection Manager also supervises collection care for objects in storage, on exhibit, on loan, and ongoing collection inventory. Supervision of the collection includes monitoring environmental conditions in storage areas, making conservation recommendations and actively pursuing grants that benefit collections care and use. Furthermore, the Museum Collection Manager serves as a member of every exhibit development team to make certain that collections are integrated appropriately into exhibits and proper safeguards are in place for object preservation. The Museum Collections Manager can support the work of staff, volunteers, and researchers working with the collection and work with honorary curators, adjunct curators, and collection committee to develop collection management policies and procedures. 20.5 Museum Registrar. The Museum Registrar is responsible for accession of new acquisitions, assess condition, maintaining accession records, processing deaccessions and maintaining loans. Furthermore, Museum Registrar is responsible for maintaining a record of values for insurance and maintaining a graphic record of significant objects. The Museum Registrar also supervises and performs inventory of collections and data entry into collection catalog. Additionally, Museum Registrar serves as a member of exhibit development team to . make certain that collections are integrated appropriately into exhibits and proper safeguards are in place for object preservation. The Museum Registrar can supervise and train volunteers and staff in proper methods of handling objects, in data entry work in proper inventory processes. 20.6 Museum Librarian. The Museum Librarian is responsible for maintaining information regarding the collection and exhibits and making the library collection holdings publicly accessible. The Museum Librarian is also responsible for maintaining subscriptions and 36 acquiring reference publications for the collection, accession and inventory holdings and maintaining Museum catalog. Additionally, Museum Librarian cares for archival materials in storage, on exhibit, and on loan. This includes the supervision of staff, volunteers, and researchers working in the library. The Museum Librarian can also research images and acquire the rights for use of images in exhibits and educational presentations. 20.7 Museum Educator (Head Curator). The Museum Educator is responsible for leading the education program development and delivery team for adults and students. The Museum Educator also develops and presents programs for the public and for school tours including generating lesson plans and providing reference material for teachers and source materials for elementary students relevant to Museum exhibits and collections. Furthermore, the Museum Educator serves as a member of every exhibit development team to make certain that the needs of the school audience are addressed. The Museum Educator can work individually with teachers, group leaders, and event planners to provide excellent customer service. The Museum Educator can also recruit train, schedule and supervise staff and volunteers to provide needed programming. 20.8 Museum Education Assistant. Museum Education Assistant is responsible for presenting science topics and programs to the visiting public, youth groups, and school groups under the supervision of the Museum Educator. Museum Education Assistant is also responsible for putting information and classroom resources for teachers on the Museum's education website, as well as update education and program information on the Museum's main website. The Museum Education Assistant serves as a member of every exhibit development team to make certain that the needs of the school audience are addressed. 20.9 Science Exhibit Project Manager. Science Exhibit Project Manager is responsible for maintenance activities for all exhibits and the Facility. The Science Exhibit Project Manager is also responsible for assuring safety and security of collection objects from harm due to light, dust, heat, and visitors. Furthermore, the Science Exhibit Project Manager provides a regular program of safety training for staff and volunteers and an MSDS file for the chemicals currently used in the Museum. The Science Exhibit Project Manager can present educational programming to adult and student groups working collaboratively as a member of the education staff team under the supervision of the Museum Educator. 20.10 History Exhibit Project Manager. History Exhibit Project Manager is responsible for maintenance activities for all exhibits and the Facility. The History Exhibit Project Manager is also responsible for assuring safety and security of collection objects from harm due to light, dust, heat, and visitors. Furthermore, the History Exhibit Project Manager provides a regular program of safety training for staff and volunteers and an MSDS file for the chemicals currently used in the Museum. The History Exhibit Project Manager can present educational programming to adult and student groups working collaboratively as a member of the education staff team under the supervision of the Museum Educator. ARTICLE 21 PROFESSIONAL STAFF 37 21.1 Minimum Professional Staff. CCMJV shall maintain a professional staff of a minimum of 8 employees for the following positions: Museum Director, Educator, Education Assistant, Collection Manager, Librarian, Registrar, History Exhibits Project Manager, and Science Exhibits Project Manager. The Minimum Professional Staff is subject to Article 21.2 and the Employee Transition Plan in Article 18. Upon losing any one of these key positions, CCMJV shall have two (2) months to restaff the position. If the position cannot be restaffed within two (2) months, CCMJV may seek a two (2) month extension from the City Manager to fill that key position. 21.2 Modification of Minimum Professional Staff. The Professional Minimum Staff requirement in Article 21.1 can be increased or decreased upon request of the Museum Director and approval by the City Manager. If the Museum Director determines that the Professional Staff size needs modification, the Museum Director shall submit the details of the position/positions and duties of the position/positions the Museum Director is seeking to modify to the City Manager. The City Manager will make the final decision as to whether to modify or not modify the Minimum Professional Staff required. If the City Manager does not approve of the Professional Minimum Staff modification, the Minimum Professional Staff requirements in effect at the time of denial shall remain in effect. Any modification approved by the City Manager shall be in writing and will become the effective Minimum Staff Requirement. 21.3 Minimum Qualification and Experience for Professional Staff. CCMJV shall only hire professional staff that meets the following qualifications for key staff positions: (a) Museum Director's Minimum Qualifications. The Museum Director shall have a master's degree in Museum studies, natural history, history, anthropology, or academic field that relates to the collections of the Museum. This position requires ten years' experience working in the Museum field including three (3) years in a leadership position. (b) Museum Collection Manager Minimum Qualifications. The Museum Collection Manager must have a master's degree in Museum studies, natural history, history, or anthropology field that relates to the collections of the Museum. This position requires (2) two years' professional experience in a Museum or comparable facility; or any equivalent combination of training, education or experience. (c) Museum Registrar Minimum Qualifications. Museum Registrar must have a Bachelor's degree in Museum studies, history, public history, American studies, anthropology or other related field (Master's degree preferred). This position requires (2) two years' Museum work experience or work in a comparable facility; or any equivalent combination of training, education, or experience. (d) Museum Librarian Minimum Qualifications. Museum Librarian must have a Bachelor's degree in Museum studies, history, public history, American studies, anthropology, library science or related field (Master's degree preferred) This position requires (2) two years' experience working in a Museum or comparable facility; or any equivalent combination of training, education, and experience. 38 (e) Museum Educator Minimum Qualifications. The Museum Educator must have a master's degree in Museum studies, history, anthropology, or any field that relates to the collections of the Museum. This position requires two (2) years' experience working in a Museum or comparable facility; or any equivalent combination of training, education and experience. (f) Museum Educator Assistant Minimum Qualifications. The Museum Educator Assistant must a bachelor's degree in biology or environmental science, or any field that relates to the collections of the Museum. This position requires (2) two years' experience working in a Museum or comparable facility; or any equivalent combination of training, education and experience. (g) Science Exhibit Project Manager Minimum Qualifications. The Exhibit Project Manager must have a master's degree in Museum studies with a specialty in science /natural history that relates to the collections of the Museum. This position requires two (2) years' work experience in a Museum or comparable facility; or any equivalent combination of training, education, and experience. (h) History Exhibit Project Manager Minimum Qualifications. The Exhibit Project Manager must have a master's degree in Museum studies with a specialty in history /anthropology field that relates to the collections of the Museum. This position requires two (2) years' work experience in a Museum or comparable facility; or any equivalent combination of training, education, and experience. 21.4 Waiver of Minimum Qualifications. CCMJV may seek a waiver of Minimum Qualification for hiring a Professional Staff member. Any waiver sought shall only apply to a candidate and not to the Professional Staff positions. Any waiver of Minimum Qualification for Professional Staff shall be submitted in writing to the City Manager. If the City Manager denies the waiver request, CCMJV may not hire the unqualified candidate. If the City Manger waives the Minimum Qualification requirement, CCMJV may hire the candidate the waiver was sought for. The approved waiver will not apply to previous or future candidates. ARTICLE 22 FISCAL MATTERS 22.1 Capital Campaign. If CCMJV wishes to pursue any Capital Campaign, it must follow the same approval process as Facility Improvements in Article 13. Any Capital Campaign shall be conducted in good faith and must be in compliance with state and federal law. 22.2 Miscellaneous Fees and Prices. Subject to Article 11 of this Agreement, CCMJV shall have the authority to set the amount of all prices and fees for services rendered or sales made to the public or otherwise at the Museum, including without limitation, food and drink concessions, souvenirs, parking, special exhibits, and other special events. 39 22.3 Franchises or Concessions. CCMJV shall have exclusive authority to grant to any nonprofit corporation or public or private organization franchises or concessions that further the public use and enjoyment of the Museum. 22.4 Solicitation of Private and Public Funding. CCMJV shall assist the Friends of the Museum or any other non - profit organization created to benefit the Museum : (a) use its best efforts to (i) actively solicit private support for the Museum through membership fees and charitable contributions and (ii) actively solicit federal, state or local grants or other funds to support the operation and purposes of the Museum ; and (b) apply all funds contributed to it as membership fees, charitable donations, public grants or loans, or any other sources, to the Operating Expenses, Facility Improvements at the Museum and other Museum Purposes in accordance with this Agreement. Facility Expenditures or Advertisement paid for by Private or Public Funding shall not be reimbursed under Article 15, Article 25, or any other provision of this Agreement. 22.5 Grant Funding. The City shall allow CCMJV to apply for grants in the City's name for which CCMJV might not otherwise be eligible subject to prior approval by the City Manager or if the City Manager instructs, the City Council. The City Council retains the right to accept or not accept grant funds so applied for. All grants to the City received for Museum shall be transferred to CCMJV within thirty (30) days of the receipt of the grant funds, if permitted by the terms of the grant. All grant money shall be expend to enhance the Museum or applied in accordance to the terms of the grant. ARTICLE 23 PROHIBITED TRANSACTIONS AND BENEFITS 23.1 Benefits to Organizations. CCMJV shall not contribute, donate, contract, or provide any economic or non - economic benefits to the Friends of the Museum and their members, the Auxiliary and their members, the Advisory Board and their members, or any other organization created to benefit the Museum and their members. CCMJV shall not receive any contributions or receive any economic or non - economic benefits from the Friends of the Museum, the Auxiliary, or any other organization created for benefit the Museum. Only the Museum may receive any economic or non - economic benefits from non - profit. organizations. CCMJV may facilitate or manage the benefit received by the City made by an organization. At no time does the benefit become property of CCMJV. This article shall not apply to CCMJV's initial purchase of gift shop items from the Auxiliary. 23.2 Memberships. CCMJV members, employees, or any affiliates cannot be members of the governing board of Friends of the Museum, governing board of the Auxiliary, the Advisory Board, or any other governing board of an organization created to benefit the Museum. 23.3 Benefits to Individuals. CCMJV shall not provide any economic or non - economic benefit to any individual person affiliated with the City of Corpus Christi including City employees, City Council, and City Mayor. CCMJV shall not receive any economic or non- economic benefit from any individual person affiliated with the City of Corpus Christi including City employees, City Council, and City Mayor. 40 ARTICLE 24 REVENUE 24.1 Revenue Account. After the Effective Date, CCMJV shall collect all revenues and sales tax. Revenues collected may be held in a CCMJV account. All revenues less sales tax shall be deposited biweekly into an account maintained in the Depository in the name of the City. This account will be the Revenue Account. CCMJV is not authorized to withdraw from the Revenue Account. The City shall have the authority to withdraw proceeds from the Revenue Account. 24.2 Revenue Withdrawals. Beginning the third month of this Agreement, the City shall withdraw the previous month revenue from the Revenue Account on a monthly basis until such withdrawals total the Gross Benchmark Revenue for the Fiscal Year. The first month's revenue will remain in the account to pay for bank fees and charges. Gross Revenue over the Gross Revenue Benchmark shall be paid to CCMJV for reimbursement for Facility Improvement Expenditures in accordance with Article 25. Facility Improvement Expenditure reimbursement payments shall begin the following month Gross Revenue exceeds Gross Revenue Benchmark in a Fiscal Year. The Facility Improvement Expenditure payment shall be made on or before the fifteenth (15) day of such month. Management Fee payments shall begin the following month Gross Revenue exceeds the total of Gross Benchmark Revenue plus Facility Improvement Expenditure Reimbursement in a fiscal year. The Management Fee payment shall be made on or before the fifteenth (15) day of such month. The remaining excess revenue shall be withdrawn and applied to the City's General Fund. 24.3 General Fund Revenue. The revenue first -in within the Fiscal Year up to the Gross Benchmark Revenue shall be applied to the City's General Fund. All revenue in the amount of 50% of Gross Revenue that exceeds the total of Gross Benchmark Revenue plus Facility Improvement Reimbursement for each Fiscal Year shall be applied to the City's General Fund. 24.4 Gross Revenue Deficiency. CCMJV is required to generate a Gross Revenue of $318,295 for the 2013 Fiscal Year and $347,231 for the 2014 Fiscal Year. CCMJV shall pay the City the difference between the Gross Revenue Benchmark and the Gross Revenue for any Fiscal Year that Gross Revenue does not exceed the Gross Revenue Benchmark. The payment of the Gross Revenue Deficiency shall be made within 30 days of the end of the Fiscal Year in which there was a Gross Revenue Deficiency. CCMJV's obligations to pay the City the difference between the Gross Revenue Benchmark and Gross Revenue is subject to force majeure. Therefore, to the extent that Museum Operations are interrupted as a result of acts of God, war or civil disturbance, the obligation to make these payments will be suspended proportionately to the number of days that CCMJV is unable to operate the Museum. 24.5 Proportionate Year. This section shall apply to the month of August 2014. All the conditions of Article 24 shall be proportionally applied. August 2014 conditions shall be proportionally applied based on the second Fiscal Year of this Agreement. ARTICLE 25 FACILITY IMPROVEMENT REIMBURSEMENT 41 25.1 Excess Revenue. CCMJV shall be entitled to reimbursement of Facility Improvement Expenditures made under the Facility Improvement Plan submitted under Article 13. Only Approved Facility Improvements made under the Facility Improvement Plan shall be eligible for Facility Improvement Reimbursement. Facility Improvement Expenditures shall be reimbursed in any such Fiscal Year the Gross Revenue exceeds the Gross Benchmark Revenue. If the difference between Gross Revenue and Gross Benchmark Revenue is greater than Facility Improvement Expenditures, CCMJV shall be completely reimbursed for Facility Improvement Expenditures. If the difference between Gross Revenue and Gross Benchmark Revenue is less than Facility Improvement Expenditures, all the difference will be paid to reimburse CCMJV for Facility Improvement Expenditures. Any unreimbursed Facility Improvement Expenditures for the Fiscal Year shall carry forward to the following Fiscal Year. Any Facility Improvements Expenditures made in a Fiscal Year after Management Fees have been paid shall carry forward to the following Fiscal Year. Payments for Facility Improvement Reimbursements shall be made in accordance with Article 24. 25.2 No Excess Revenue. Facility Improvements expenditures which are not reimbursed in any Fiscal Year will be carried forward to the following year. CCMJV is not entitled to reimbursement for Facility Improvements if revenues do not exceed Gross Benchmark Revenues. At the end of the Agreement, any Facility Improvement Expenditures which have not been reimbursed will be at the sole expense of CCMJV, and the City shall have no responsibility for the payment of same. 25.3 Long Term Plan. Upon execution of a long term agreement between the City and CCMJV, CCMJV may carry over the Unreimbursed Facility Improvement Expenditures for reimbursement as per the long term agreement. 25.4 Unreimbursed Facility Improvement Expenditures. Facility Improvement Expenditures are not a loan to the City and the terms of this Agreement shall not be interpreted to construe or treat the Facility Improvement Expenditures as a loan to the City to be repaid to CCMJV by the City. Any Facility Improvement Expenditures that are not reimbursed under the terms of this Agreement shall not be reimbursed. CCMJV will receive no compensation for unreimbursed facility expenses and the City shall retain all facility improvements. The City makes no guarantee that Facility Improvement Expenditures shall be reimbursed. ARTICLE 26 MANAGEMENT FEE 26.1 Management Fee. As compensation to CCMJV for providing the services herein specified during the Term with regards to managing the Museum, the city shall pay CCMJV in the amount of 50% of Gross Revenue that exceeds the sum of Gross Benchmark Revenue and Facility Improvement Reimbursement for each Fiscal Year. ARTICLE 27 REPORTING OBLIGATIONS 42 27.1 Annual Report for Financial Accounting. On or before September 1 of each year throughout the Term of this Agreement, CCMJV shall, at its sole expense, prepare and submit to the City Manager for his or her review, the Annual Report. This report will provide a general summary of the Museum's operations and will include a complete financial accounting for all funds, including use of major maintenance funding and a listing of all capital investments made at the Museum. In addition, CCMJV will also evaluate its performance in the area of customer service. 27.2 Annual Plan. At least thirty (30) days prior to the beginning of each Fiscal Year for CCMJV, CCMJV shall, at its sole expense, prepare and submit to the City Manager for his or her information, an Annual Plan. The City Manager shall present this plan to the City Council as an informational item. The Annual Plan shall, at a minimum, present the Facility Improvement Plan for the Museum, an evaluation of existing exhibits, a description of major programmatic changes planned at that time for the ensuing year, and any proposed changes in fees at the Museum. 27.3 Supplementary Reports. In addition to submitting the Annual Report and Annual Plan to the City Manager, CCMJV shall also submit the following reports: (a) Quarterly Reports. Beginning six (6) months after the mutual execution of this Agreement and on a quarterly basis afterwards throughout the term of this Agreement, CCMJV shall, at its sole expense, prepare and submit to the City Manager a quarterly report setting forth a summary of the operations of the Museum and the services provided by CCMJV at the Museum for the preceding quarter. (b) Annual Report for Expenditures. Beginning six (6) months after the mutual execution of this Agreement and on an annual basis afterwards throughout the term of this Agreement and any renewal, whichever is shorter, CCMJV shall, at its sole expense, prepare and submit to the City Manager an annual report detailing the expenditures made by CCMJV for the preceding year. (c) Monthly Report. Beginning one month after the mutual execution of this Agreement and on a monthly basis afterwards throughout the term of this Agreement, CCMJV shall, at its sole expense, prepare and submit to the City Manager a monthly report outlining the finances of the Museum for the previous month. This report shall include a summary of revenue from various sources and an accounting of costs. 27.4 Annual Independent Audit. Within sixty (60) days after the end of each Fiscal Year, CCMJV shall arrange for an audit of its books and records by an independent, certified public accountant; this audit shall be conducted at CCMJV's sole cost and expense and shall cover the previous Fiscal Year. CCMJV shall deliver to the City Manager an original, signed copy of each such annual audit, by the earlier of: (a) thirty (30) days after the completion of such audit or (b) ninety (90) days after the end of the Fiscal Year covered by such audit. 27.5 Reconciliation of Accounts. Within sixty (60) days after the end of each Fiscal Year, CCMJV shall reconcile the Revenue Account, Operation Support Account, and Collection Fund Account for each Fiscal Year. 43 ARTICLE 28 BOOKS AND RECORDS 28.1 Financial Records. CCMJV shall establish and maintain books, records, and systems of account relating to the Museum's Gross Revenue and Operating Expenses in accordance with generally accepted accounting practices & City record retention policies. These records shall, to the extent necessary to meet requirements for audits under Article 28.2 of this Agreement, be retained by CCMJV for four (4) years after the termination date of this agreement and made available to the City upon request. 28.2 City Audit Participation. If requested by the City, CCMJV shall make available all information reasonably necessary for the City and the State Auditor to perform audits of the use and application of all revenues, grants, and fees, all City funds, except for private fundraising activities and private donor information, received by CCMJV during the current and preceding year, including Museum operations and management. ARTICLE 29 CCMJV CODE OF ETHICS 29.1 CCMJV Code of Ethics. CCMJV shall have a Code of Ethics governing its members, employees, and activities consistent with applicable requirements of state and federal laws and American Association of Museum and Texas Historical commission standards. The City may request from CCMJV those documents necessary for the City to confirm the establishment of an ethics and conflict of interest policy. 29.2 Ethics Report. CCMJV will report on compliance with the ethics and conflict of interest policy, and any issues that have arisen as a result, in the Annual Report. ARTICLE 30 INSURANCE 30.1 Liability Insurance. CCMJV, at no expense to the City, shall obtain and maintain continuously, throughout the Term of this Agreement, policies of insurance as enumerated below. Such policies: (i) shall be subject to approval by the City's Risk Manager as to company, form and coverage, and primary to all other insurance the City may secure; and (ii) must protect the City from any and all claims and risks in connection with any activity performed by CCMJV, or any of its respective officers, employees, agents, contractors or assigns, by virtue of this Agreement or any use and occupancy of the Premises authorized by this Agreement. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this Agreement. (a) Commercial General Liability Insurance. A policy of Commercial General Liability Insurance, written on an insurance industry standard occurrence form or equivalent, shall include all the usual coverages known as: Commercial Broad Form, Premises /Operations 44 Liability, Products /Completed Operations, Contractual Liability, Independent Contractors, and Personal /Advertising Injury. Such policy or policies must provide the minimum limit of $1,000,000 combined single limit insuring against all liability of CCMJV and its General Managers and/or Contract Administrators arising out of and in connection with CCMJV's use or occupancy of the Museum , and premises liability. The minimum limits on these policies will be adjusted periodically by the City so that the limits generally reflect the values of the policies as of the date this agreement is signed. (b) Business Automobile Liability Insurance. A policy of Business Automobile Liability Insurance, including coverage for any owned, nonowned, leased or hired vehicles, written on an insurance industry standard form or equivalent must provide the minimum limit of $500,000 combined single limit. (c) Liquor Liability Insurance. A policy of Liquor Liability Insurance written on an insurance industry standard form or equivalent must provide the minimum limit of Contingent Liquor liability insurance with a combined single limit of $1,000,000 and $2,000,000 in the aggregate. (d) Crime and Fidelity Coverage. A policy of Crime and Fidelity Insurance written on an insurance industry standard form or equivalent must provide the minimum limit of $500,000 per occurrence of coverage for (i) employee dishonesty, (ii) forgery or alteration, (iii) theft, disappearance and destruction inside and outside the Museum ; and (iv) robbery and safe burglary inside and outside the Museum . (e) Workers' Compensation and Employers' Liability. CCMJV must obtain Workers' Compensation and Employers' Liability coverage through a licensed insurance company in accordance with Texas law. The contract for coverage must be written on a policy and with endorsements approved by the Texas Department of Insurance. The coverage provided must be in amounts sufficient to assure that all workers' compensation obligations incurred will be promptly met. A policy of Workers' Compensation insurance written on an insurance industry standard form or equivalent, as may be required by law must provide the minimum limit, including employer's liability coverage of $500,000 per person per occurrence and $500,000 per person per disease, and $500,000 aggregate disease. 30.2 Policy Rating and Primary Insurance Requirements. All policies shall be subject to approval by the City's Risk Manager as to insurance company (must be rated A -VII or better in the A.M. Best's Key Rating guide and licensed to do business in the State of Texas or issued as a surplus lines by a Texas Surplus Lines broker), form and coverage, deductibles, and primary to all other insurance. 30.3 Policy Requirements. CCMJV agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: (1) Name the City and its officers, officials, employees, volunteers, and elected representatives as additional insured by endorsement, as respects operations and activities of, or on behalf of, the named insured performed under contract with the City, with the exception of the Workers' 45 Compensation policy; (2) Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; (3)Workers' Compensation and Employers' Liability policies will provide a waiver of subrogation in favor of the City; and (4) Provide thirty (30) calendar days advance written notice directly to City of any suspension, cancellation, non - renewal or material change in coverage, and not less than ten (10) calendar days advance written notice for nonpayment of premium. 30.4 Proof of Policy. CCMJV shall furnish to the Risk Manager or designee two (2) copies of Certificates of Insurance with applicable policy endorsements, showing the following minimum coverage by an insurance company(s) acceptable to the Risk Manager or designee. The City must be named as an additional insured for the General Liability policy, and waiver of subrogation in favor of the City is required on all applicable policies. 30.5 Request of Policy. The City shall be entitled, upon request and without expense, to receive copies of the policies, declarations page and all endorsements thereto as they apply to the limits required by the City, and may require the deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any such policies). CCMJV shall be required to comply with any such requests and shall submit a copy of the replacement certificate of insurance to City at the address provided below within 10 days of the requested change. CCMJV shall pay any costs incurred resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Risk Management P.O. Box 9277 Corpus Christi, TX 78469 -9277 Fax # - (361) 826 -4555 30.6 Commencement of Work. Prior to the commencement of any work under the Agreement, CCMJV shall furnish an original completed Certificate(s) of Insurance to the City which shall be completed by an agent authorized to bind the named underwriter(s) and their company to the coverage, limits, and termination provisions shown thereon, and which shall furnish and contain all required information referenced or indicated thereon. The original certificate(s) must have the agent's original signature, including the signer's company affiliation, title and phone number, and be mailed directly from the agent to the City. The City shall have no duty to pay or perform under this Agreement until such certificate shall have been delivered to the City, and no officer or employee, other than the City's Risk Manager, shall have authority to waive this requirement. CCMJV shall not commence work under this agreement until all insurance required herein has been obtained and approved by the City's Risk Manager or designee. CCMJV must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been so obtained. 30.7 Primary Insurance. It is agreed that CCMJV's insurance shall be deemed primary and non - contributory with respect to any insurance or self - insurance carried by the City of Corpus Christi for liability arising out of operations under this Agreement. 46 30.8 Liability Insurance Modification. The City reserves the right to review the insurance requirements of this section during the effective period of the Agreement and any extension or renewal thereof and to modify insurance coverage and their limits when deemed necessary and prudent by the Risk Manager based upon changes in statutory law, court decisions, or circumstances surrounding the Agreement, but in no instance will the City allow modification whereupon the City may incur increased risk. 30.9 Policy Renewal. Within five (5) calendar days of a suspension, cancellation, or non- renewal of coverage, CCMJV shall provide a replacement Certificate of Insurance and applicable endorsements to City. Failure to provide and to maintain the required insurance shall constitute a material breach of this Agreement. 30.10 Failure to Insure. In addition to any other remedies the City may have upon CCMJV's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order CCMJV to stop work hereunder, and /or withhold any payment(s) which become due to CCMJV hereunder until CCMJV demonstrates compliance with the requirements hereof. 30.11 Property Insurance. The City currently maintains property insurance on a citywide . basis for its facilities, including facilities at the Museum. Throughout the Term of this Agreement, the City shall maintain such property insurance (and be responsible for all premiums for such insurance) on City facilities, including Museum facilities, as the City determines is fiscally responsible to maintain. The City will not determine what property insurance to maintain on Museum facilities separately, but only as part of its overall determination as to the appropriate level of property insurance for City facilities citywide. City's Property Insurance "scheduled" policy coverages are in Exhibit K and scheduled values for Museum facilities are in Exhibit L. 30.12 Business Interruption Insurance. The City will not be responsible for any "business interruption" losses suffered by CCMJV as a result of damage to a Museum facility. CCMJV shall determine whether to acquire insurance to cover any such losses. 30.13 Waiver of Subrogation. The parties release each other from any claims for damage caused by or resulting from risks insured against under any insurance policies carried by the parties under this Agreement. The parties agree to cause the issuers of the insurance policies maintained by them hereunder to include waivers of the rights of recovery and subrogation. 30.14 Payment of Damages. Nothing herein contained shall be construed as limiting in any way the extent to which CCMJV may be held responsible for payments of damages to persons or property resulting from CCMJV's or its subcontractors' performance of the work covered under this Agreement. 30.15 Report of Accident. In the event of accidents of any kind related to this Agreement, CCMJV shall furnish the Risk Manager with copies of all reports of such accidents within ten (10) days of the accident. 47 30.16 Proceeds of Casualty Insurance. If either the Museum or any part is damaged or destroyed by fire or other casualty, the City will determine whether or not repairs and restoration are practicable and feasible and will inform CCMJV in writing of its election to make or not make any such repairs and restoration within one hundred twenty (120) days following the date of such damage or destruction. All proceeds of any casualty insurance paid for by the City shall be the exclusive property of the City and CCMJV shall have no rights to receive any sums therefrom. If the City elects not to repair or restore, the City shall have the right to terminate this Agreement with respect to the Museum, without penalty, premium or fee, by sending notice to CCMJV. If the City elects not to restore any damaged or destroyed facilities' improvements and there is an outstanding approved facility expenditure due to CCMJV, then City shall pay to CCMJV from the casualty insurance proceeds that portion of the casualty insurance proceeds attributable to the improvements, but in no event in an amount to exceed the outstanding facility expenditure. If the City elects not to restore the Museum (whichever has been damaged) but within one (1) year following termination of this Agreement decides to restore the same, the City shall give written notice thereof to CCMJV whereupon CCMJV shall have a period of thirty (30) days in which to elect to enter into, and actually enter into, a new contract with the City for operation of the same following its restoration which contract shall be on the same terms and conditions described herein except that the term shall be only for the portion of the term hereof lost due to termination under this Section. If on the other hand, the City elects to repair and restore, the City shall give written notice thereof to CCMJV whereupon CCMJV shall have a period of thirty (30) days in which to elect to enter into, and actually enter into, a new contract with the City for operation of the same following its restoration which contract shall be on the same terms and conditions described herein except that the term shall be only for the portion of the term hereof lost due to termination under this Section. ARTICLE 31 REPRESENTATIONS AND WARRANTIES 31.1 Representations and Warranties. CCMJV represents and warrants to the City and covenants as follows: (a) Mission. CCMJV is capable in aspects related to the operation and management of the Museum and agrees to apply its best efforts and most efficient methods in the full operation and management of the Museum. (b) Formation. CCMJV is a limited liability company duly incorporated, validly existing and in good standing under the laws of the State of Texas. (c) Authority. CCMJV has full power and authority (corporate or otherwise) to enter into this Agreement and to consummate the transactions contemplated by it. This Agreement has been duly authorized by all necessary action on the part of CCMJV and no other corporate or other action on the part of CCMJV is necessary to authorize the execution and delivery of this Agreement. The individual executing this Agreement for CCMJV has full authority to do so and to bind CCMJV to its terms. 48 (d) Conflicts and Consents. The execution and delivery by CCMJV of this Agreement and the performance by CCMJV of the transactions contemplated in it will not violate any federal, state, or local law, rule, or regulation, or conflict with or result in any breach or violation of, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or constitute an event or condition that would permit termination or acceleration of the maturity of, the Articles of Incorporation, bylaws or partnership agreement of CCMJV (as applicable) or any indenture, mortgage, lease, agreement, or other instrument or obligation to which CCMJV is a party or by which it may be bound whose termination or acceleration would materially adversely affect the ability of CCMJV to perform its obligations under this Agreement. No approval, authorization, consent, or other order or action of, or filing or registration with, any person, entity, or governmental authority is required for the execution and delivery by CCMJV of this Agreement. (e) Conflict with Orders, etc. The execution and delivery by CCMJV of this Agreement will not conflict with any order, judgment, or decree of any court, government, government agency, or instrumentality, whether entered pursuant to consent or otherwise, by which CCMJV may be bound or affected. (f) Litigation. There is no litigation, action, arbitration, grievance, administrative proceeding, suit, or claim filed and pending, nor is there any investigation by a governmental agency of CCMJV or any of its affiliates that, if adversely decided, could have a material adverse impact on CCMJV's ability to perform its obligations under this Agreement. ARTICLE 32 FORCE MAJEURE 32.1 Force Majeure. As used in this Agreement, the term "Force Majeure" with respect to a delay in performance shall mean any delay that is attributable to: (a) any strike, lockout or other labor or industrial disturbance (whether or not on the part of the employees of either party), civil disturbance, future order claiming jurisdiction, act of the public enemy, war, riot, sabotage, blockade, embargo, inability to secure customary materials, supplies or labor through ordinary sources by reason of regulation or order of any government or regulatory body; (b) any changes in any applicable laws or the interpretation; or (c) any lightning, earthquake, fire, storm, hurricane, tornado, flood, washout, explosion, or any other cause beyond the reasonable control of the party from whom performance is required and of its contractors or other representatives. Any prevention, delay, or stoppage in a party's performance due to Force Majeure shall excuse the performance of the party affected for a period of time equal to any such prevention, delay, or stoppage; provided, however, that during the period of any such delay or stoppage, the party whose performance is excused shall take all reasonable steps to minimize the length of such delay or stoppage. ARTICLE 33 49 INDEMNITY 33.1 Indemnification and Hold Harmless. CCMJV, its officers, agents, and employees ( "Indemnitor ") shall indemnify and hold the City of Corpus Christi, its officers, agents, employees and representatives ( "Indemnitees "), harmless and defend with counsel retained by CCMJV, from and against any third -party action, cause of action, suit, debt, cost, directly - related reasonable expense (including reasonable attorneys' fees, court costs or investigation costs), claim, or demand brought or asserted by any third -party whomsoever (collectively, "Claims "), including but not limited to claims on account of personal injuries or death or damage to property, at law or in equity, which any Indemnitees may suffer or sustain or which may be asserted or instituted against any of Indemnitees resulting from or in connection with (i) the negligence or willful misconduct of CCMJV or its agents, contractors or employees; (ii) any breach or default by CCMJV of any of its warranties, representations, covenants, or obligations made in this Agreement; or (iii) the violation of any copyright, patent, service mark, trade name or trademark by CCMJV; provided, however, that the foregoing indemnification shall not extend to Claims to the extent such Claims (A) arise from any breach or default by the City of any of its warranties, representations, covenants or Obligations made in this Agreement, as determined by a court of competent jurisdiction, (B) are caused by or arise out of the services provided by the architects, engineers and other agents (other than CCMJV) retained by the City in connection with capital improvements or capital equipment purchases at the Facility, (C) arise from the fact that at any time prior to, as of, or after the commencement of the term hereof the Facility and its premises are not or have not been, in compliance with all federal, state, local and municipal regulations, ordinances, statutes, rules, laws and constitutional provisions including, but not limited to, all handicap accessibility laws, rules and regulations, (D) arise from any obligation or liability under or in respect of any contract, agreement or other instrument executed by CCMJV as authorized herein unless CCMJV's acts or omissions in administration thereof are the basis for such liability, as determined by a court of competent jurisdiction, (E) arise from any act or omission carried out by CCMJV at or pursuant to the express direction or instruction of the City's Contract Administrator (but only if CCMJV advises the City's Contract Administrator in writing, promptly following such direction, that CCMJV believes such direction to be imprudent) , or (F) arise from acts of negligence or willful misconduct of City's agents, employees or subcontractors. City agrees to promptly notify CCMJV of any Claim received by the City. This indemnity specifically includes any Claims brought by CCMJV's officers, agents, contractors, or direct employees. This indemnity shall continue notwithstanding the termination of this Agreement with respect to any act or occurrence preceding the termination. 33.2 Relationship to Insurance Obligations. Nothing contained in this Article 33 shall be construed to affect the allocation of responsibilities between the Parties or the insurance coverages required in Article 30 of this Agreement. ARTICLE 34 DEFAULT; TERMINATION OF AGREEMENT; REMEDIES 34.1 Termination la City. The City shall have the right to terminate this Agreement following an Event of Default. The following shall constitute "Events of Default" under this Agreement: 50 (a) failure of CCMJV to perform or comply with any covenant or condition made under this Agreement, or failure of any representation or warranty made by CCMJV in this Agreement to have been or to continue to be true and correct, provided CCMJV shall have a period of sixty (60) days from the date of written notice from the City within which to cure such default, or, if such default is not legally capable of cure within such 60 -day period, CCMJV shall have a reasonable period to complete such cure if CCMJV promptly undertakes action to cure such default within such 60 -day period and later diligently prosecutes such action to completion; (b) abandonment or assignment or encumbrance or transfer of this Agreement or of the Property by CCMJV, without the prior written consent of City; and (c) the appointment of a receiver to take possession of all or substantially all of the assets of CCMJV, or an assignment by CCMJV for the benefit of creditors, or any action taken or suffered by CCMJV under any insolvency, bankruptcy, reorganization, moratorium, or other debtor relief act or statute, whether now existing or later amended or enacted, if any such receiver, assignment, or action is not released, discharged, dismissed, or vacated within sixty (60) days. (d) The above is in addition to any other right to terminate explicitly given to the City elsewhere in this Agreement. 34.2 Termination by CCMJV. In the event the City fails to timely pay any portion of any fee due under this Agreement or to perform any other obligation required to be performed by the City, and such failure is not cured within sixty (60) days after written notice of such failure has been delivered to the City by CCMJV, CCMJV shall have the right to terminate this Agreement; provided that if such default is not legally capable of cure within such 60 -day period, the City shall have a reasonable period to complete such cure if the City promptly undertakes action to cure such default within such 60 -day period and later diligently prosecutes such action to completion. The above is in addition to any other right to terminate explicitly given to CCMJV elsewhere in this Agreement. ARTICLE 35 SURRENDER OF PREMISES 35.1 Surrender of Premises. Transition. Upon the Termination Date or other termination of this Agreement, CCMJV shall (a) promptly remit to the City funds which are due and owing pursuant to the terms of this Agreement, including funds not expended but held by CCMJV, and (b) peaceably quit and surrender to the City the Premises and Property together with all permanent improvements approved by the City, in good order and condition, normal wear and tear and damage caused by casualty or condemnation excepted. In order to determine the proper remittance to the City under the above- mentioned clause (a), CCMJV agrees throughout the term of this Agreement to segregate Revenue and Operation Support Payment in an account or accounts separate from other funds held by CCMJV. The Premises and Personal Property shall be surrendered free and clear of all liens and encumbrances other than presently existing liens and encumbrances and any other encumbrances created or approved in writing by City. CCMJV 51 shall, immediately before the Termination Date or other termination of this Agreement, remove all of CCMJV's Property as provided in this Agreement, and repair any damage resulting from the removal. CCMJV's obligations under this Article shall survive the Termination Date or other termination of this Agreement. Any items of CCMJV's Property which shall remain in the Premises after the Termination Date of this Agreement may, at the option of the City, be deemed abandoned and in such case may be disposed of by City in any manner allowed by law. Upon the termination of this Agreement for any reason, CCMJV and the City shall cooperate to the fullest reasonable extent in effecting an orderly and efficient transfer of the operation and management of the Museum from CCMJV to the City or its designee. Such cooperation shall include without limitation the entry into such agreement, the execution of such documents and the convening of such meetings as may be reasonable required to affect such transfer. ARTICLE 36 HAZARDOUS MATERIALS 36.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: (a) "Environmental Laws" means any applicable federal, state, and local laws (whether under common law, statute, ordinance, rule, regulation, code, or otherwise), permits, orders, decrees, and other requirements of governmental authorities relating to the protection of human health or the environment, whether existing as of this date, previously enforced, or subsequently enacted. (b) "Hazardous Material" means any element, compound, chemical, chemical mixture, or other substance that is identified as, or determined to be, a hazardous, toxic, or dangerous substance, pollutant, contaminant, waste, or material under, or is otherwise regulated under, any Environmental Law or other law relating to chemical management, environmental contamination, environmental cleanup, or nuisances, including, without limitation, petroleum and petroleum products, asbestos, radon and other radioactive materials, bio- hazards, and lead -based paint. (c) "Release" when used with respect to Hazardous Material shall include any actual or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing in, on, under, or about any other part of the Property. 36.2 No Hazardous Materials. CCMJV covenants and agrees that neither CCMJV nor any of its agents or Invitees shall cause or permit any Hazardous Material to be brought upon, kept, used, stored, generated, or disposed of in, on, or about the Property, or transported to or from the Property, provided that CCMJV may use such substances in such limited amounts as are customarily used in the operation and maintenance of a Museum so long as such use is in compliance with all applicable Environmental Laws. Each party shall immediately notify the 52 other party if and when such party learns or has reason to believe there has been any Release of Hazardous Material on or about the Property. 36.3 CCMJV's Environmental Indemnity. If CCMJV breaches any of its obligations contained in this Article, or, if any act, omission or negligence of CCMJV or any of its agents or Invitees results in any contamination of the Premises or any other part of the Property or in the Release of Hazardous Material from, on, about, in, on or beneath the Property, then CCMJV shall Indemnify the City from and against all losses (including, without limitation, the loss or restriction of the use of the Property and sums paid in settlement of claims, fines, civil penalties, attorney's fees, consultants' fees and experts' fees and costs) arising during or after the Term of this Agreement and relating to such Release; provided, however, that the Indemnity contained in this Article shall not apply to any losses resulting from a Preexisting Condition. The above - mentioned indemnity includes, without limitation, costs incurred in connection with the investigation of site conditions and all activities required to locate, assess, evaluate, remediate, clean up, remove, contain, treat, stabilize, monitor or otherwise control any Hazardous Material, and to restore the Property to its prior condition. Without limiting the above, if CCMJV or any of its agents or invitees causes or permits the Release of any Hazardous Materials on, about, in or beneath the Property, CCMJV shall, immediately, at no expense to the City, take any and all necessary actions to abate and remediate the Release in accordance with all Environmental Laws. CCMJV shall afford the City a full opportunity to participate in any discussions with governmental regulatory agencies regarding any settlement agreement, cleanup or abatement agreement, consent decree, or other compromise or proceeding involving Hazardous Material. ARTICLE 37 ASSIGNMENTS; SUBCONTRACTING 37.1 Assignments; Subcontracting. CCMJV has been chosen by the City to operate and manage the Museum in reliance upon CCMJV's stated and unique expertise, skill, knowledge, and mission. CCMJV shall not assign, transfer, mortgage or encumber its interest in this Agreement or any other right, privilege or license conferred by this Agreement, either in whole or in part. Any assignment or encumbrance shall be voidable and, at the City's election, shall constitute a material default under this Agreement. Without limiting the obligations of CCMJV under this Agreement, CCMJV shall have the right and the authority to enter into contracting arrangements with any other person or entity (including without limitation the City or other City agency) for the provision of any service required or allowed to be performed by CCMJV under this Agreement. ARTICLE 38 NOTICES 38.1 Notices. All notices required to be given shall be in writing and either delivered personally or sent by certified mail to the appropriate address listed below, or at such other address as shall be provided by written notice. Notice shall be deemed communicated two Business Days from the time of mailing if mailed as provided in this Article. For convenience of 53 the parties, copies of notices may also be given by other means; however, neither party may give official or binding notice except by personal delivery or by certified mail. If to Corpus Christi Museum Joint Venture: If to the City of Corpus Christi: William Durrill 615 Upper Broadway Corpus Christi, Texas 78401 Ronald L. Olson City Manager City of Corpus Christi 1201 Leopard P.O. Box 9277 Corpus Christi, Texas 78469 ARTICLE 39 COMPLIANCE WITH LAWS 39.1 Generally. CCMJV shall comply and conform with all laws and all governmental regulations, rules, and orders that may from time to time be put into effect relating to, controlling or limiting the use and operation of the Museum. CCMJV shall secure, or cooperate with the City in its securing, all permits and licenses specifically required for the operation of the Museum (copies of which shall be promptly provided to the City), and shall comply with all applicable laws and regulations relating to labor employed in and relating to the operation of the Museum. 39.2 Preexisting Conditions. Notwithstanding any other provision of this Agreement to the contrary, CCMJV shall incur no liability for, or assume any obligation to correct, any Preexisting Condition; provided, however, that CCMJV shall use its reasonable efforts to (a) identify all such Preexisting Conditions and notify the City immediately of their existence, (b) take all reasonable action necessary to minimize any risk of injury or liability that may be occasioned by such a Preexisting Condition, and (c) to the extent funds are or become available, as referred to in the following sentence, take all reasonable action necessary to correct any such Preexisting Condition; provided further, however, that the above shall not condition or limit City's Indemnity under Article 33 above. The City agrees to use its reasonable efforts to assist CCMJV in obtaining such grants or other funds as may be available to assist in the financing of any work performed to bring any building, structure or service within the Premises into compliance with any applicable local, state or federal law or regulation, including without limitation the Americans with Disabilities Act of 1990. Nothing in this Article shall eliminate any obligation of CCMJV to ensure that all new construction, remodeling or rehabilitation work performed by CCMJV at the Museum is completed in compliance with all applicable local, state, and federal laws and regulations. Either party shall have the option of terminating this Agreement in the event the parties are unable to satisfactorily resolve any Preexisting Condition. 39.3 Americans with Disabilities Act. CCMJV acknowledges that the Americans with Disabilities Act (the "ADA ") requires that programs, services, and other 'activities provided by a 54 public entity to the public, whether directly or through a contractor, must be accessible to the disabled public. CCMJV further acknowledges its obligation to comply with the ADA and any other federal, state or local disability rights legislation. CCMJV warrants that it will fulfill that obligation, and that it will not discriminate against disabled persons in the provision of services, benefits or activities pursuant to this Agreement. 39.4 Non- Discrimination Ordinances. CCMJV shall comply with all provisions of CORPUS CHRISTI, TEX., CODE §24 -82, as amended, recodified or reenacted from time to time, relating to equal opportunity in employment and business practices. Such provisions are incorporated in this Agreement and by reference made a part of this Agreement as though fully set forth in this Agreement. ARTICLE 40 TAXES, ASSESSMENTS, LICENSES, PERMIT FEES, AND LIENS 40.1 Taxes, Assessments, Licenses, Permit Fees, and Liens. CCMJV agrees to pay taxes of any kind, including any possessory interest taxes (unless exempt under Texas law), that may be lawfully assessed on or on account of the performance of this Agreement and to pay all other taxes, excises, licenses, permit charges, and assessments based on CCMJV's use of the Premises that may be imposed upon CCMJV by law, all of which shall be paid when such sums become due and payable and before delinquency. CCMJV agrees not to allow or suffer a lien for any such taxes to be imposed upon the Premises or upon any equipment or property located there without promptly discharging such lien, provided that CCMJV, if so desiring, may have reasonable opportunity to contest the validity of it. If CCMJV intends to contest or to fail to pay when due any tax or fee referred to in the preceding sentence, CCMJV shall provide the City with at least 30 -days' notice of that intention before the tax is due, explaining its reasons. 40.2 Sales Tax. CCMJV shall collect and remit all sales tax required by law. CCMJV shall be responsible for the payment of all sales tax collected. If CCMJV intends to contest or to fail to pay when due any tax or fee referred to in the preceding sentence, CCMJV shall provide the City with at least 30 -days' notice of that intention before the tax is due, explaining its reasons. 40.3 Unpaid taxes. The City may choose to pay the tax on behalf of CCMJV, and if it is later determined the tax or some portion of it validly owed, CCMJV shall reimburse the City within thirty (30) days of written demand. ARTICLE 41 MISCELLANEOUS 41.1 Liability of the City. The City's obligations to CCMJV under this Agreement shall be limited to the terms and conditions set forth in this Agreement. Notwithstanding any other provision in this Agreement to the contrary, in no event shall the City be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect or incidental damages, including without limitation lost profits, arising out of or in connection with this Agreement or the services performed in connection with this Agreement. 55 41.2 Liability of CCMJV. CCMJV's obligations to the City under this Agreement shall be limited to the terms and conditions set forth in this Agreement. Notwithstanding any other provision in this Agreement to the contrary, in no event shall CCMJV be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect or incidental damages, including without limitation lost profits, arising out of or in connection with this Agreement or the services performed in connection with this Agreement. 41.3 Liens. CCMJV shall keep the Premises and Personal Property free from any liens arising out of any work performed, material furnished or obligations incurred by or for CCMJV and any other liens or encumbrances. 41.4 Parties and Their Agents. As used in this Agreement, the term "agents" when used with respect to either party shall include the agents, employees, officers, and representatives of such party. All approvals, consents or other determinations permitted or required by the City shall be made by or through the City Manager unless otherwise provided in this Agreement or unless the City gives notice otherwise to CCMJV. 41.5 Dispute Resolution. In the event of a dispute between CCMJV and the City regarding any term of this Agreement, the parties shall attempt to resolve the matter informally through the following mechanism: the City Manager and CCMJV management, or their respective designees, shall meet to review and discuss the matters in dispute; if the City Manager and CCMJV are unable to reach a mutual resolution, either party may submit the matter to a nonbinding, structured mediation procedure fashioned by persons or organizations experienced in alternative dispute resolution ( "ADR ") procedures. The mediation may be requested by any party and shall be initiated within thirty (30) days from the date of the request unless extended by agreement of both parties. The alternative dispute resolution procedures utilized for the mediation shall include the exchange of written claims and responses, with supporting information, at least seven (7) days prior to the actual mediation. The positions expressed and mediator's recommendations shall not be admissible as evidence in any subsequent ADR or legal proceeding. If the matter is submitted to mediation and the matter is not resolved, an affected party shall be entitled to pursue any legal remedy available. 41.6 No Implied Waiver. No failure by either party to insist upon the strict performance of any obligation of the other party under this Agreement or to exercise any right, power or remedy arising out of a breach, irrespective of the length of time for which such failure continues (except in cases where this Agreement expressly limits the time for exercising rights or remedies arising out of a breach), shall constitute a waiver of such breach or of that party's right to demand strict compliance such term, covenant or condition or operate as a surrender of this Agreement. No waiver of any default or the performance of any provision shall affect any other default or performance, or cover any other period of time, other than the default, performance or period of time specified in such express waiver. One or more written waivers of a default or the performance of any provision shall not be deemed to be a waiver of a subsequent default or performance. The consent of either party given in any instance under the terms of this Agreement shall not relieve the other party of any obligation to secure the consent of the other party in any other or future instance under the terms of this Agreement. 56 41.7 Headings and Subheadings. The captions preceding the articles and sections of this Agreement and in the table of contents have been inserted for convenience of reference and such captions in no way define or limit the scope or intent of any provision of this Agreement. 41.8 Successors and Assigns. The terms, covenants, and conditions contained in this Agreement shall bind and inure to the benefit of the City and CCMJV and, except as otherwise provided in this Agreement, their personal representatives and successors and assigns. There are no third -party beneficiaries to this Agreement. 41.9 Access to Museum. The City and their duly authorized agents shall have access to the Premises and other Property at all times (a) for the purpose of inspection and to make any repairs, additions or renovations as the City may have the right to do under the provisions of this Agreement, and (b) for use by the City in case of emergency, as determined by City in its sole discretion. 41.10 Relationship of Parties. The services to be rendered by CCMJV pursuant to this Agreement are as an independent contractor only and the relationship between CCMJV and the City is solely that of owner and contractor. Nothing contained in this Agreement shall be construed to create a partnership, joint venture, or a relationship of employment or agency. 41.11 Agreement Made in Texas. This Agreement shall be deemed to be made in and shall be construed in accordance with the laws of the State of Texas. Venue of any action brought by one party against the other to enforce or arising out of this Agreement shall be in Nueces County, Texas. 41.12 Integrated Agreement; Modification. This Agreement contains all the agreements of the parties relating to the subject matter addressed in this Agreement, and cannot be amended or modified except by a written agreement approved by the City of Corpus Christi City Council and mutually executed between each of the parties. 41.13 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 41.14 Exhibits. All Exhibits to which reference is made in this agreement are deemed incorporated in this agreement in their entirety, whether or not actually attached. 41.15 Non - Liability of Officials, Employees, and Agents. No elective or appointive board, commission, member, officer, employee or other agent of the City shall be personally liable to CCMJV, its successors, and assigns, in the event of any default or breach by the City or for any amount which may become due to CCMJV, its successors, and assigns under this Agreement, or for any obligation of the City under this Agreement. Likewise, no board member, member, officer, employee or other agent of CCMJV shall be personally liable to the City, its successors, and assigns under this Agreement, in the event of any default or breach by CCMJV or for any 57 amount which may become due to the City, its successors, and assigns, or for any obligation of CCMJV under this Agreement. 41.16 Time of Essence. Time is of the essence of each provision of this Agreement. 41.17 Survival of Indemnities. Termination of this Agreement shall not affect the right of either party to enforce any and all Indemnities and representations and warranties given or made to the other party under this Agreement, nor shall it affect any provision of this Agreement that expressly states it shall survive such termination. 41.18 Good Faith Dealings. All parties will act in good faith in the preparation, execution, and resolution of any matter within the scope of this Agreement. These good faith acts shall be made in a lawful and ethical manner. 41.19 Severability. If any article, section, subsection, paragraph, sentence or clause of this Agreement shall be deemed to be illegal, invalid or unenforceable for any reason, such illegality, invalidity or unenforceability shall not affect the legality, validity or enforceability of the remainder of this Agreement. If any change occurs during the term of this Agreement with respect to any laws, rules, regulations or ordinances which affect the rights or obligations of CCMJV or the City under this Agreement, or the applicability of any taxes or fees, CCMJV and the City shall negotiate in good faith to bring this Agreement into conformance with such change or changes. In the event that such agreement cannot be reached, CCMJV or the City shall have the right to immediately terminate this Agreement upon written notice to the other party. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. CORPUS CHRISTI MUSEUM CITY OF CORPUS CHRISTI JOINT VENT RE I,LQ By: William -Du ni Principal 2_ By: Ron L. Olson City Manager Date Date Approved as to legal form: ft 2- , 2012 Buck Brice Assistant City Attorney For City Attorney 58 Museum Parking Lots highlighted AMERICAN AAM Accreditation Commission Chair Bonnie Styles Director, Illinois State Museum, Illinois William Director, Georgia Museum of Art, Athens, Georgia Andrew Meech President and CEO, Senator John Heinz History Center, Pittsburgh, Pennsylvania Patricia Murphy Executive Director, Oberlin Heritage Center, Oberlin, Ohio Terrie Rause Founding and Former CEO for Visitor Services, United States Capitol Visitors Center, Washington, DC Mary Sue Sweeney Price Director, The Newark Museum, New Jersey James Weiu Director, Worcester Museum of Art, Worcester, Massachusetts ASOCIATION OF MUSEUMS Novem6er23,3O11 Mr. Richard R. Sttyker, Jr. Director Corpus Christi Muscuin ofScicncc and History 1900 N Chaparral St Corpus Christi, IX784O1-ll14 Dear Mr. Stryker: (]o behalf of the Accreditation Commission, it is my grea pleasure k` tell you that the Corpus Christi Museum of Science and History has been awarded subsequent AAM Museum Accreditation at the November 7-9, 2011 meeting! This means the museum mcets National Standards and Best Practices for U.S Museums and remains o member o[xcommunity of institutions that have chosen to hold themselves publicly accountable 10 exccllencc. Through a rigorous process o[ self assessment and review by its peers, the museum has shown itself to be a good steward of its resources held in the public trust and committed to a philosophy of continual institutional growth. We applaud the rnuscum for cxcelknt educational programs and cxhibitions that engage regional xodivocco.BvH6r6n�eo[dheu*utcmv*w,wecxpcctvnoomcviduoce o[astrategic planning and approved plan that, in partnership with th City of Cmp Christi, meets the An-titillation Commission's Expeckaions Regards- ng It/Villa/anal Planni ng (enclosed). The planning process should include a review of the mission statement and address governance issues, including clear delegation of authority to improve staff efficiency and morale. We encourage the City Council, as a partner and parent to the museum, to participate in the planning process and endorse a plan that will help the museum continue to meet best practices in the museum field, and achieve its full potential. Accreditcd museums are lookcd up to as leaders in ihe fictd and we encourage you to proactively fulfill this responsibility by scrving as a rncntor and resource for other muxocuuo*. Support and encourage rnuseutns working towards meeting standards, improving practices, or secking accreditation by attending and speaking at professional m0006ngm.being uoAA�� sharing your cxpertise in ather ways. To help ensure that accredited museums maintain their leei of profcssional performance they must undergo periodic reaccreditation reviews. Effecthrc in 2010, the Accrcditation Commission has itnplemented a temporary extension of the standard review cycle from 10 years to 15 years. The Accrcditation Program staff will therefore initiate the museum's next accreditation review- –starting with the self- process—in 2024./\n part ufthe cycle exteouiuo,/nu000cop will also be asked 10 periodically subinit updates/data electronically in 15nn EYE STREET NW, SUITE 4no WASHINGTON uoxu000 PHONE: 202.289,1818 FAX: 202,289.6578 WWW.AAM-US.ORG the intervening years. More information about this new component will be release( in the next couple of years. Congratulations on this achievement. I know everyone at the museum has worked hard to earn this honor. The Accreditation Program staff can always be reached at (202) 289-9116 or by e-mail at accreditation@aam-us.org if you have any questions about the program and maintaining your institution's accredited status. Sincerely yours, 5:24.4.14 rcow. Bonnie W. Styles, Ph.D. Chair, Accreditation Commission Director, Illinois State Museum Enclosures Accreditation Commission's Expectations Regarding Institntional Planning Award Kit Site Visit Report What You Need To Know About: The Museum's Visiting Committee Site Visit Report What You Need to Know About: The Temporary Reaccreditation Cycle Extension cc: Mr. Ronald L. Olson, Manager, City of Corpus Christi Mr. Bruce B. Eldredge, Visiting Committee Team Contact Ms. Laurie J. Rule, Visiting Committee Team Member By accepting accredited status, your institution agrees to abide by the decisions of the Accreditation Commission regarding continuing review, subsequent accreditation, and, if necessary, withdrawal of accreditation, and to comply with the administrative requirements of the program. You may display your certificates of accreditation and use the accreditation logo on printed materials as long as your institution meets the program requirements and standards for accreditation as determined by the Accreditation Commission. TEXAS HISTORICAL COMMISSION The State Agency for Historic Preservation RICK PERRY, GOVERNOR JOHN L. NAU, III, CHAIRMAN F, LAWRENCE OAKS, EXECUTIVE DIRECTOR November 8, 2005 Richard Stryker, Ph.D., Director Corpus Christi Museum of Science and History 1900 N. Chaparral Corpus Christi, TX 78401 Dear Rick, Congratulations on your successful certification through the Texas Historical Commission's (THC) Curatorial Facility Certification Program (CFCP). Your willingness to participate as the first curatorial facility to undergo the certification process has proved successful, both for your facility and the CFCP in general. The observations and suggestions you offered with regards to the program are very much appreciated and will be taken into consideration after the initial testing phase of the CFCP is complete. The Corpus ChriSti Museum of Science and History was granted certification with three deficiency factors at the quarterly meeting of the THC held in Jefferson, TX from October 26 — 28, 2005. The three noted deficiency factors include incomplete held-in-trust agreements for state-associated held-in-trust collections, substandard policies and substandard procedures as outlined in the CFCP handbook. Certification is granted for a period of ten years. Thus, initial certification for the Corpus Christi Museum of Science and History will expire on October 28, 2015. Prior to expiration, the Corpus Christi Museum of Science and History will be notified by the THC regarding the need to renew its certification. Mark Ryan, the Curatorial Facility Certification Program Coordinator, will work with you and your staff on monitoring progress towards efforts taken to remedy the noted deficiency factors. Please feel free to contact Mark at (512) 463-6252 for more information or to discuss any issues or concerns. Congratulations once more on your successful certification. F. La rence Oaks Executive Director FLO/M/1ft P. 0. BOX 12276 • AUSTIN, TX 78711-2276 • 512/463-6100 • FAX 512/475-4872 • TDD 1-800/735-2989 www.thc.statctx.us 1. PERMITTEE DEPARTMENT OF THE INTERIOR I , SE �� ! 2� {n U.S. FISH AND WILDLIFE SERVICE f L r V FEDERAL FISH AND WILDLIFE PERMIT CORPUS CHRISTI MUSEUM OF SCIENCE AND HISTORY CORPUS CHRISTI MUSEUM 11268A CORPUS CHRISTI, TX 78401 U.S.A. B. NAME AND TITLE OF PRINCIPAL OFFICER ( /151 IS a business) RICHARD S. STRYKER MUSEUM DIRECTOR 10. LOCATION WHERE AUTHORIZED ACTIVITY MAY BE CONDUCTED TEXAS 1900 N. CHAPARRAL NUECE8 COUNTY CORPUS CHRISTI TX , CONDITIONS AND AUTHORIZATIONS: 3.201 (I/97) 2. AUTHORITY- STATUTE 1 B USC 703 -712 REGULATIONS 50 CFR Pert 13 50 CFR 21.27 NUMBER MB11266A•0 4. RENEWABLE Ii. MAY COPY M j YES F YES III NO I NO EFFECTIVE 7. EXPIRES 09/01/2010 03131/2013 9. TYPE OF PERMIT SPECIAL PURPOSE POSSESSION- DEAD MIGRATORY BIRDS FOR EDUCATIONAL USE A. GENERAL CONDITIONS SET OUT IN SUBPART D OF 50 CFR 13, AND SPECIFIC CONDITIONS CONTAINED IN FEDERAL REGULATIONS CITED IN BLOCK #2 ABOVE, ARE HEREBY MADE A PART OF THIS PERMIT. ALL ACTIVITIES AUTHORIZED HEREIN MUST BE CARRIED OUT IN ACCORD WITH AND FOR THE PURPOSES DESCRIBED IN THE APPLICATION SUBMITTED. CONT.INUED VALIDITY, OR RENEWAL, OF THIS PERMIT IS SUBJECT TO COMPLETE AND TIMELY COMPLIANCE WITH ALL APPLICABLE CONDITIONS, INCLUDING THE FILING OF ALL REQUIRED INFORMATION AND REPORTS. 8. THE VALIDITY OF THIS PERMIT IS ALSO CONDITIONED UPON STRICT OBSERVANCE OF ALL APPLICABLE FOREIGN, STATE, LOCAL OR OTHER FEDERAL LAW. C. VALID FOR USE BY PERMITTEE NAMED ABOVE. D. You are authorized to possess for conservation education purposes lawfully acquired dead migratory bird specimen(s), Including parts, nests, and nonviable eggs. This authorization to possess migratory birds does not apply to bald eagles or golden eagles.. Species authorized: All. Note: No Bald & Golden Eagle, no Threatened & Endangered species Any person who is (1) employed by or under contract to you for the activities specified In this permit, or (2) otherwise designated a subpermittee by you in writing,, may exercise the authority of this permit. Authorized subpermittees: Corpus Christi Museum staff You and any subpermittees must comply with the attached Standard Conditions for Special Purpose Possession Deed Migratory Bird Educational Use Permits, ADDITIONAL CONDITIONS AND AUTHORIZATIONS ALSO APPLY 12. REPORTING REQUIREMENTS ANNUAL. REPORT DUE: 01/31 SSUED BY TITLE ADMINISTRATOR, MIGRATORY BIRD PERMIT OFFICE - REGION 2 1. peemine8 DEPARTMENT OF THE INTERIOR U.S. FISH AND WILDLIFE SERVICE FEDERAL FISH AND WILDLIFE PERMIT CORPUS CHRISTI MUSEUM OF SCIENCE AND HISTORY 1900 N. CHAPARRAL CORPUS CHRISTI, TX 78401 U.S.A. 8. NAME AND TITLE OF PRINCIPAL OFFICER ( 1 is a business) RICHARD S. STRYKER MUSEUM DIRECTOR E OF PERMIT DEAD EAGLE EXHIBITION 3•201 AUTHORITY-STA 18 USG 668a REGULATIONS 60 CFR PART 13 50 CFR 22.21 • NUMBER MB11265A-0 . RENEWABLE 11 YES NO 8. EFFECTIVE 09/01/2010 6. MAY COPY ElYES NO 1.E.)(PRES 03/31)2013 10. LOCATION WHERE AUTHORIZED ACTIVITY MAY SE CONDUCTED TEXAS 1900 N. CHAPARRAL NUECES COUNTY CORPUS CHRISTI TX 11. CONDITIONS AND AUTHORIZATIONS: A. GENERAL CONDITIONS SET OUT IN SUBPART OF 60 CFR 13, AND SPECIFIC CONDITIONS CONTAINED IN FEDERAL REGULATIONS CITED IN BLOCK ft2 ABOVE, ARE HERESY MADE A PART OF THIS PERMIT. ALL ACTNITIES AUTHORIZED HEREIN MUST BE CARRIED OUT IN ACCORD WITH AND FOR THE PURPOSES DESCRIBED IN THE APPLICATION SUBMITTED. coNTINIJED VALIDITY, OR RENEWAL OF THIS PERMIT IS SUBJECT TO COMPLETE AND TIMELY COMPLIANCE WITH ALL APPLICABLE CONDITIONS INCLUDING THE FILING OF ALL REQUIRED INFORMATION AND REPORTS. THE VALIDITY OF THIS PERMIT IS ALSO CONDITIONED UPON STRICT OBSERVANCE OF ALL APPLICABLE FOREIGN, STATE, LOCAL OR OTHER FEDERAL LAW. C. VALID FOR USE BY PERMITTEE NAMED ABOVE. D. You are authorized e Irnen s • -- ‘-_r____ for „,.._......_.._.. ________ _, _ Qt Speclmen Acquired from . Date Acq. 1 Bald Eagle, full mount donated by US FWS 7/16/1971 Golden Eagle, egg on loan Am. Mus, Nat. Hist. 1970 1 Golden Eagle, study skin 1973 2 Bald Eagle, egg Forbes Nat. Scl for Youth Fndn . , 5/17/1975 2 Eagle, wings donated by Charles Moss 6/3/1980 1 Bald Eagle, egg Forbes Nat. Sci. for Youth Fndn 11/19/1969 2 Bald Eagle, egg Forbes Nat. Sci. for Youth Fndn 6/17/1975 E. Any person who Is (1) employed by or under contract to you for the activities specified In this permit, or (2) otherwise designated a subperrnittee by you in writing, may exercise the authority of this permit. Authorized subpermittees: Corpus Christi Museum staff F. You and any subpermittees must comply with the attached Standard Conditions for Dead Eagle Exhibition Permits. ADDITIONAL CONDITIONS AND AuTHORIzATIONS ALSO APPLY 12. REPORTING REQUIREMENTS ANNUAL REPORT DUE: 01/31 ISSUED BY ADMINISTRATOR, MIGRATORY BIRD PERMIT OFFICE - REGION 2 E. Any person who Is (1) employed by or under contract to you for the activities specified In this permit, or (2) otherwise designated a subperrnittee by you in writing, may exercise the authority of this permit. Authorized subpermittees: Corpus Christi Museum staff F. You and any subpermittees must comply with the attached Standard Conditions for Dead Eagle Exhibition Permits. ADDITIONAL CONDITIONS AND AuTHORIzATIONS ALSO APPLY 12. REPORTING REQUIREMENTS ANNUAL REPORT DUE: 01/31 ISSUED BY ADMINISTRATOR, MIGRATORY BIRD PERMIT OFFICE - REGION 2 EDUCATIONAL DISPLAY PERMIT NUMBER EDU-0707-1404 IS HEREBY ISSUED TO; RICHARD STRYKER, JR, CORPUS CHRISTI MUSEUM OF SCIENCE AND HISTORY UNDER THE AUTHORITY OF CHAPTER 43, SUBCHAPTER C OF THE TEXAS PARKS AND WILDLIFE CODE The activities permitted by this document are to be carried out in accordance with the Texas Parks and Wildlife Code, the Rules and Regulations of the Texas Parks and Wildlife Commission, and all of the following provisions: 1. This permit may not be transferred, assigned or conveyed by the holder. 2. The issuance of this permit is not a guarantee that a subsequent permit or renewal of this permit will be granted. 3. Required information and data shall be maintained at the address of the permit holder and shall be available for inspection at the request of personnel of the Texas Parks and Wildlife Department during the active life of the permit 4. Acceptance of this permit constitutes an acknowledgment and agreement that the holder will comply with all Rules, Regulations, Orders and Proclamations of the Texas Parks and Wildlife Commission issued in accordance with the law and the conditions precedent to the granting of this perrnit. Failure to comply with any and all provisions of this permit may result in enforcement action, including criminal penalties authorized by the Parks and Wildlife Code, and the revocation of this permit, 1 5. This permit does not relieve the holder of the responsibility to obey all other local, county, state and federal laws while carrying out the authorized activities. - ADDITIONAL PROVISIONS FOLLOW ON ATTACHED PAGES. - August 11, 2011 Amended Date Carter Smith EXECUTIVE DIRECTOR TEXAS PARKS AND WILDLIFE DEPARTMENT Issued by: Mitch Lockwood Interim Director, Big Game Program 6. This permit will expire at midnight, August 2, 2013. 7. The following individuals may conduct the activities authorized by this permit under the guidance of the permittee: SUBPERMITTEES: ASHLEY HENDERSON, MAGDALENA MEDRANO, ROY GARRETT UNPERMITTED ASSISTANTS: A permittee engaging unperrnitted assistants shall maintain on file at their office activities. and possess on their person in the field a signed and dated list of all unpermit-ted persons assisting in permitted Page I of 6 Stryker, Richard Expire s 08/02/2013 ScenUflc Permit No. EDU-0707-1404 8. The following wildlife species+ in the specified quantities are authorized by this permit to be: a. received from legal sources and held on public display for educational purposes. Common Name Scientific Name Quantity Reptiles, excluding species listed by the Department as N.A. threatened or endangered, unless authorized below. Texas Tortoise American Alligator Gopherus berlandieri NTE 1 Alligator mississippi NT B 2 b. taken from the public waters of Texas for educational purposes. Common Name Freshwater and marine fishes and invertebrates, excluding species listed by the Department as threatened or endangered. Quantity NTE 20 specimens per species per year c. received and possessed for the purpose of salvage, specimens found dead or received from legal sources. Common Name Scientific Name Quantity Birds* (bird specimens, parts, eggs, or nests), mammals, reptiles, amphibians, and invertebrates. Excluding species listed by the Department as threatened or endangered, unless expressly authorized below. BIRDS (bird specimens Bald Eagle Golden Eagle White-tailed Hawk Reddish Egret Piping Plover Wood Stork Bachman's Sparrow Peregrine Falcon Whooping Crane Sooty Tern Least Tern Golden-cheeked Warbler Brown Pelican Spotted Owl White-faced Ibis MAMMALS Kangaroo Rat Dwarf Sperm Whale Killer Whale Humpback Whale Red Wolf Gray Wolf Black Bear Jaguar , parts, eggs, or nests) Haliaeetus leucocephalus Aquila chlysaetos Buteo alblcaudatus Egretta rufescens Charadrius melodus Mycteria Americana Aimphila aestivalis Falco peregrines Grits Americana Sterna fiscata Sterna antillarwn Dendrolca chrysoparia Pelecanus occidentalis Strix occidentalis Plegadis chihi Dipodomys elator Kogia simus Ornicus orca Megaptera novaeangliae Canis rufus Canis lupus Ursus americanus Panthera onca Page 2 of 6 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. • Stryker, Richard Expires 08/02/2013 REPTILES AND AMPHIBIANS Loggerhead Sea Turtle Green Sea Turtle Atlantic Hawksbill Sea Turtle Kemp's Ridley Sea Turtle Alligator Snapping Turtle Chihuahuan Mud Turtle Texas Tortoise Reticulate Collared Lizard Texas Horned Lizard Mexican Tree Frog Mexican Burrowing Toad INVERTEBRATES Sandbank Pocketbook Golden Orb FISH Smalltooth Sawfish PLANTS Black Lace Cactus Johnston's Frankenia South Texas Ambrosia Slender Rushpea Caretta caretta Chelonia mydas Eretmochelys imbricate Lepidochelys kempli Graptemys eaglet! Kinosternon hirtipes murrayi Gopherus berlandieri Crotaphytus reticulates Phrynosoma cornutum Smilisca baudinii Rhinophrynus dorsalis Lampsi lis satura Quadrula aurea Pristis pectinata Scientific Permit No, EDU-9707-1404 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Echinocereus reichenbachil var. albertii N.A. Frankeniajohnstonli N.A. Ambrosia cheiranthifolla N.A. Hoffinannseggia tenella N.A. * In accordance with an appropriate valid US Fish & Wildlife Service federal permit. 9. Permittee is authorized to lend mounted or salvaged protected wildlife specimens held by atfthority of this permit, for use in educational programs. All specimens shall be individually tagged or otherwise marked in such a manner as to allow identification of the pennittee as the source of the specimen. Specimens must be accompanied by required specimen donation form provided by, the Department. A copy of the completed form must be submitted with the annual report. 10. The facilities in which protected wildlife are held shall be maintained in accordance with Attachment I (69.305 Facility Standards). 11. The following means for taking or capture are authorized by this permit: a. live-trap, net, by hand, salvage, collection along public roads and rights-of-way, 12. The foll owing locations for taking or capture are authorized by this permit: a. Nueces county, of the state of Texas. 13. All fish collection gear left unattended shall be clearly marked with permittee's name and permit number. 14. All specimens taken or captured shall be deposited with an appropriate collection of the Corpus Christi Museum, Corpus Christi State University, or otherwise disposed of in accordance with paragraph I 5d of this permit. Page 3 of 6 Stryker, Richard Expires 08/02/2013. Scientific Permit No. EDU-0707-I404 15. PERMIT HOLDER IS REQUIRED TO: a. File a completed report form annually (provided on issuance of this permit), and any reports or publications based on data collected under authority of this permit, with the Texas Parks and Wildlife Department, Wildlife Permits Section, 4200 Smith School Rd., Austin, TX, 78744, no later than fourteen days following the anniversary date of the permit (or the expiration date if the permit is due for renewal). YOUR PERMIT WILL NOT BE VALID UNLESS YOUR REPORT HAS BEEN RECEIVED b. Carry a copy of this permit at all times when exercising the provisions of this permit, which shall be subject to inspection by any authorized enforcement officer of the Department upon request, c. Notify the Parks and Wildlife Department Law Enforcement Office(s) in the region(s) of your field activities by telephone not less than 24 hours nor more than 72 hours prior to collection if collection techniques or devices being used are ordinarily classified as illegal (Le., shooting game aniinals at night by use of light; taking game species during closed seasons; using gill nets or electro- shocking devices to collect fish; hunting/collecting along public roads and rights-of-way, etc.). A confirmed res 'onse from the local ame warden Is re, uired rlor to e &dim if the sant I n activities being conducted involve methods of capture ordi arils classified as illegal. If the regional office(s) or telephone number(s) is unknown, the number(s) may be obtained at any time by calling a Parks and Wildlife Communication Center; Austin - (512) 389-4848; Houston - (281) 842- 8100. d. Dispose of protected wildlife taken under the authority of this permit in only one oflhe following ways: (1). Kill and utilize by examination, experimentation, necropsy, or dispose of as waste in accordance with state law and city or county regulations (burning is suggested if not in conflict with city, county or state regulations), (2). Hold permanently for educational purposes, or donate to another educational display, scientific, or zoological permit holder authorized to receive such specimens, with required specimen donation form provided by the Department. A copy of the completed form must be submitted with the annual report. (3). Release unharmed at collection site. 16. PERMIT HOLDER 15 PROHIBrIED FROM a. Selling or bartering specimens collected under the authority of this permit. Specimens may be donated to other permit holders by completing the receipt form enclosed with the permit. b. Collecting on private premises without prior written consent of the owner or operator. of the premises. c. Collecting in a state park without prior written permission from Texas Parks and Wildlife Department Natural Resource Program: email: david.riskindQtowd.state.tx.us d. Collecting in a wildlife management area without prior written permission from the area manager. e. Taking species listed by the department as threatened or endangered without express authority in paragraph 8 of this permit. Page 4 of 6 Stryker, Richard Expires 08/02/2013 Scientific Permit No EDU-0707-1404 17. ADDITIONAL PROVISIONS: a. No hunting or fishing license is required for permit holders or individuals listed in paragraph 7 while conducting the activities expressly authorized by this permit. Bach listed Individual should carry a copy of this permit during collection activities, and a letter of permission from the permittee if working Independently. b. This permit is subject to any applicable federal permit requirements. Where a federal permit is required, the perrnit holder is cautioned to carry a copy of the federal as well as the state permit during collecting activity. 18. PERMIT HOLDER'S ADDRLSS FOR RECORDICEEPING PURPOSES: Richard Stryker Corpus Christi Museum 1900 North Chaparral Street Corpus Christi, TX 78401 ******************#************************ ATTACHMENT §69.305. Facility Standards. (a) All live birds or animals possessed under an educational display permit, or under a zoological collection permit in a facility that is not accredited by the American Zoo and Aquarium Association, shall be kept in enclosures meeting or exceeding the standards set forth in this section. (b) The minimum cage sizes for mammals shall be as follows. An enclosure for mammals shall add 30 per cent of the minimum cage requirement for each additional mammal contained in the enclosure. For each: (1) pronghorn antelope - 2,500 square feet x 8 feet in height; (2) deer - 1,800 square feet x 8 feet In height; (3) desert bighorn sheep 500 square feet x 8 feet in height; (4) black bear - 400 square feet x 12 feet in height; (5) jaguar - 200 square feet x 8 feet in height; (6) fox - 180 square feet x 5 feet in height; (7) wolf - 150 square feet x 8 feet in height; (8) javelina - 120 square feet x 5 feet in height; (9) other felines - 100 square feet x 8 feet in height; (10) fur-bearing animals as defined by Parks and Wildlife Code, Chapter 71 (except fox) - 72quare feet x 5 feet in height; and (11) all other mammals - 24 square feet. The minimum cage sizes for alligators shall be as follows. For each alligator: (I) less than two feet In length: three square feet; and (2) greater than two feet In length: three square feet per foot of body length. (3) there shall be access to pooled water sufficient to provide full immersion and dry land sufficient to permit complete exit from the water. (d) The minimum cage sizes for birds shall be as follows: (1) raptors (excluding eagles): 10' x 10' x 12'; (c) Page 5 of 6 / Stryker, Richard �|���� ���=°����ww . �� ����� -_—'_-_-^..~�~~-°',''~"~, (2) eagles; 20'x4O`x}2';and (3) ail other birds: 0pn6'x 12`- (e) All enclosures for bear, mountain lion, and jagua must be constructed of chain-link and their frames securely braced and well anchored. Enclosures for other mammals and birds must be made of chainHnk or welded wire ofa mesh size that prevents escapo, and enelosures housing birds must be Iined with nylon or plastic netting. Enclosures for felines must be covered by nine-gauge chain-link. (f) A facility shall eusure that,: (() eah enctosure is supplied with clean water m all times, except as medical circumstance dictates otherwise; (2) authorized personnel observe and provide care for birds and animals daily, excep as specifically authorized by permft; and (3) all medical treatment ayanimals is performed in oonsultation with a Iicensed veterinarian. (g) The department at its discretion may inspect any facility at reasonable times to ass ss compliance with the provisions ofthis subchapter. Page 6 of 6 Corpus Christi Museum of Science and History 1900 North Chaparral Corpus Christi, TX 78401 Collection Management Policy PURPOSE OF THE MUSEUM The mission of the Corpus Christi Museum of Science and History is to present the story of the cultural crossroads of the New World. With a unique confluence of natural history, science, people and environments, the South Texas area has served as a stage for the ongoing discovery of the Americas. Through innovative programs in history, culture, and science, the museum is committed to enlarging a shared understanding of our history and heritage as well as the impact and importance of science to our lives. By telling this story, the Museum will inspire a thirst for knowledge, context, and understanding. Strategic Objectives To guide this mission the Advisory Committee adopted a series of Strategic Objectives: A. Corpus Christi Museum of Science and History will build programs around three basic themes: Humans, the Environment, and Science. 1. How have human migration, cultural encounters, and interactions shaped the unique human character of South Texas and, in turn, how has South Texas influenced the world? 2. How have environmental features and resources been linked to the human migrations, settlements, and physical exploitation of South Texas resources? 3. What does science tell us about the unique natural world of South Texas and how can we best conserve our unique resources? B. The Museum will collect and preserve unique specimens, artifacts, and ephemera which illuminate our three basic themes and support innovative programming. C. To create new knowledge, Museum collections and resources will be shared with the public and researchers. (Adopted by the Museum Advisory Committee - September 2005) 1 PURPOSE OF THE COLLECTION The Museum collects arid preserves unique specimens, artifacts, and ephemera which illuminate our three basic thernes and support innovative prograrnming. To create new knowledge, Museum collections and resources wilI be shared with the public and researchers. Responsibility for the Collection The City Council established the museum: an administrative department responsible for the operation of the Corpus Christi Museum of Science and History as a scientific institution for information, education and recreation; and support services for the museum advisory board. (Code of Ordinances, City of Corpus Christi, Texas, Article 111, Section 2-51) The City Council authorized the Advisory Committee to adopt comprehensive policies for acquiring, holding, and disposing of, by any legal means, real estate and personal property (collections) to further the purpose ofthe Museum. The Museum Advisory Committee consists oftweve (12) members appointed by the mayor with the advice and consent of the city council. The guidelines for selection of members and the terms of service are included in Code of Ordinances, City of Corpus Christi, Texas, Article IV, Division 5, Section 2-90. State laws pertaining to the operation of museums ves in the governi the power to acquire and conserve real estate and personal property under the following provisions: Article 4412a, Article 7l50` Section 4of Article 7|50, Section ]4of Article 7l50, Section 22&nf Article 7}5O. (See attached "Laws of Texas Pertaining to Museums") The Advisory Committee recognizes the unique situation of its members and recognizes museum ethical standards in addition to those ofthe City. The responsibility for implementing collection management policies and developing appropriate procedures rests with the Director, who has delegated the following duties and responsibilities: The Collection Manager is responsible responsible for supervising all aspects ofcollection care and collection inventories. He/She is responsible for managing acquisitions, accessions, and standardization of the collection catalogue. It is the Collection `o responsibility to mai tain cleanliness in all collection areas and 10 monitor environmental conditions. It is also his/her responsibility to work with adjunct and honorary curators and ad hoc collection committees to establish object conservation priorities and to pursue grant funding that will benefit the collection. Honorary curators, adjunct curators, and collection comrnittee rnembers are appointed by the director to assist him/her iri the development ofcollection plans, policies, and procedures. They may also be asked to give advice on acquisitions, deaccessions, and conservation practices. Honorary curators, adjunct curators, and collection committee members are privileged to perform collection based research and conduct educational classes utilizing the collection. It is expected that, through their activities, the collections might become more publicly accessible. The Registrar is responsible for accessioning new acquisitions, o& aud performing ongoing bzventor�moT the cnl�ctkau.The is also responsible all written records for the collection, including loan documentation. The Registrar will report to the Collection Manager any collection management practices deemed substandard, ill-advised, or improper. The Librarian is responsible for supervising all aspects of collection care for the library archival, and photographic collections. He/She is also responsible for managing the acquisition and accession 2 processes and managing the standardization of the library collection catalogue. The Librarian is responsible for supervising the ongoing collection inventory and making conservation recommendations. ACQUISITIONS Scope of the Museum Collection The early years from its foundi as a Junior Museum in 1957 to its transforming to a collecting institution were fairly open ended. In 1961, the Board voted to change the name from the Junior Museum to the Corpus Christi Museum. When it became clear that a broader base of support was needed, the City agreed to help fund the Museum. The growth ofthe collection accelerated thereafter under a mission that was very broad in scope. • "The primary purpose of this Museum is to contribute to the understanding of man's place in the wodd of nature and to impart this knowledge to the public." However, after a new director was hired in 1985 the Advisory Board was asked to provide some guidance for management of collection acquisition and development of exhibits and programs. By this time the scope ofthe collection was broad and the collection largely uncataloged. Some policy guidance was needed. • "The Corpus Christi Museum is an educational institution that collects and preserves objects and artifacts representing natural and cuitural history and uses these collections to contribute to the enjoyment and understanding of man's place in the world of nature and to impart this knowledge to the public. The museum does research based on its collection, offers education and arts programming and provides a facility for a center oflearning." (Adopted: 8/1/1985) This new mission provided a description of the broad range ofcollecting, and exhibitry that had developed over the formative years. 11 also gave definitive direction to staff that the Museurn was to continue to develop as a collection centric institution. The Museum's first collection management policy was adopted in 1987. This drove the expansion of staff, development of exhibits and programs, and the expenditure of resources. However, the director returned to the Advisory Board requesting that they give consideration to narrowing the scope and providing staff with a more focused direction. * "The Corpus Christi Museum of Science and History collects and preserves natural and cultural history objects with emphasis on South Texas and its place in the world. It presents educational exhibits and program to encourage learning related to its collections." (Adopted November 12, 1990) By narrowing the scope to south Texa the growth ofthe collection could be more focused and a deaccession program initiated. The backlog of cataloging for natural history specimens was gradually erased while the backlog of history collection cataloging remains about 50%. The use of the collection for educational purposes remained limited and the public acceptance of and interest in the display of systemic collections diminished, as reflected in 15 years of decreasing attendance. This prompted a revision of the mission in 2005 to one that removed collecting as an explicit mandate ofthe mission. Under the present missjon the Museum collects to illuminate three basic exhibit themes and to support innovative programming. Museum collections and resources will be shared with the public and researchers to create new knowledge. Responsibility for Acquisitions This change has driven a reprioritizing of staff resources. In 2005 there were five individuals whose primary functions were collections based while two people were focused on programming. That changed in 2006 with only two staff positions with collection based primary functions and five staff 3 positions which are focused on programming. C!early we are no longer interested in buildi a collection. Rather we are focusing our collection on current needs. Aspiring to become the best possible museum requires a prac ioc of acquiring the best available objects that are needed to "i!luminate our three basic exhibit themes and support innovative programming." Considerations for Accessioning Decisions 1. Care — Are there resources for providing proper storage, managernent, and care ofthe acquisition without compromising the rest ofthe collection? 2. Cooditioo — lmtbe acquisition in good condition? Will it take a large amount ofresources to stabilize or restore it? Is it so badly damaged that it will soon be worth!ess? 3. Cost of upkeep — Is the cost of keeping the acquisition equal to the benefits of having it in the collection? 4. Duplication — Does the acquisition duplicate something that is already in the collection? 5. Documentation — Is the documentation adequate to establish the significance of the acquisition to the museum? 6. Legal title — Will the museum be able to secure clear and legal title to the acquisition? 7. Legality of acquisition — The museum is responsible for making sure that everything it accessions was legaily obtained, exported, and imported. (Otherwise the rnuseum probably will not be able to claim ownership nf the ncquiaiboo.) 8. Potential use — Is the acquisition likely to be used for research, reference, loan, exhibition, education, or exchange? Is it an object, artifact, or specimen that is a voucher (an examp!e or proof) for research or other scholarship activity? 9. Provenance — Is the provenance established and adequately documented? 1 0. Public relations — How will the addition of this acquisition affect the museum's image? Will it attract visitors or damage public oupportY 11. Purchase price — Is the purchase price in line with current market values? 12. Relevance — Is the acquisition relevant to the mission and the scope of collections? 13. Restrictions — Is the acquisition free from restrictions on ownership, intellectual property rights, copyright, and trademark? 14. Safety and security — Will the acquisition compromise the safety or security of the staff or visitors? Will the acquisition require expensive safety measures to protect? 15. Scope — Does the acquisition fit the scope ofthe collection (geographic, subject, temporal, and use)? 16. Special considerations — Are there extenuating circumstances or conditions that affect the decision to acquire or not acquire the acquisition for the col!ection? COLLECTION DESCRIPTION A. Scientific Specimens The Museum collects scientific specirnens representing the environment of South Texas. It also collects relevant comparative specimens from other geographic regionmbzorder0ouidiu identification, exhibits, and education programs. The collection includes type and voucher specimens used as the basis for published scientific research. The Collection Manager is responsible for collection cmcc Specimens amused in exhibits and educational programs that are compatible with their preservation. Access to the collection may be allowed to interested visitors at the discretion of the Collection Manager. Access to all information relating to the Museum collection (except donor records) must be made publicly available. Unaecessioned specirnens may be used in educational programs. These are stored in more accessible areas and are considered expendable. 4 The Collection Committee seeks specimens that are needed for the collection and meet the collection criteria. With the approval of the director, they may be acquired through field expedition, donation, bequest, or purchase. The Collection Manager coordinates specimen preservation and conservation sets standards in the use and care ofthe natural history ob cotu. Specimens must have been collected and/or im with full knowledge and permission of the country or state of origin, ondincomp1iance with U.S. and Texas laws. IUCN Red Data Books, U.S. Fish and Wildlife Service Regu!ations, Texas Parks and Wildlife Code.) The Collection Manager acquires and maintains the necessary rnunicipa!, state, and federal permits to allow the Museum to hold these collections legaily. The permits should all be issued in the name of the Museum Director. B. Cultural Artifacts The Museum collects artifacts representing the history and culture of the people of South Texas. The Collection Manager is responsible for col!ection care. Artifacts are used in exhibits and educational programs that are compatible with their preservation. Access to the col!ection may be allowed to interested visitors at the discretion of the Collection Manager. Access to all information relating to the Museum collection (except donor records) must be made publicly available. Non accessioned artifacts may be used in educational programs. These are stored in more accessible areas and are considered expendable. The Collection Committee seeks artifacts that are needed for the col!ection and meet the collection criteria. With the approval of the director, they may be acquired through donation, bequest, or purchase. The Collection Manager coordinates artifact preservation and conservation and sets standards in the use and care of the cultural collections and exhibits Artifacts must have been collected and/or imported with full knowledge and permission of the country or state of origin, and in oonno iaoco`phh U.S. and Texas laws. Cultural properties from outside the United States offered as a donation must be accompanied by a signed and notarized statement from the donor attesting to clear title. (reference: U.S. Customs Laws, National Stolen Property Act, Pre- Columbian Statute of 1972, and Cultural Property Implementation Act of 1983.) C. Special Collections 1. Live animal specimens, acqubedhwdouadon,fieldexneddbno or purchase. The live animal collection is cared for and d of at the discretion of the Museum Eduoato� Clear cababUobcdbefore any openin�cu{o accepted and �nnux con�p|vvvdbaUmunicipal, mta1eundfedora laws regarding plants, fish and wildlife. Specimens in this collection are not accessioned, although donations are acknowledged. All live animals have a limited life span and are, therefore, considered expendable. 2. Las Dofias de la Corte gowns represent a tangible aspect of Buccaneer Days, an annua event with community-wide impact. They chronicle the history of this event and are interesting exhibit pieces. Examples may be added to the Museum collection. 3. Fine art objects may be collected to represent the cultural life of the people of South Texas as well as those works that represent the aesthetic visio of contemporary South Texa artists. The Museum will acquire artwork from living artists currently residing in the Corpus Christi area at the discretion of the director. Artworks will be used decoratively at the Museum and may be loaned for extended periods for display at public venues that are not museums. 5 4. Ora history interview may be taped with citizens on the subjec of Corpus Christi Oral history tapes are for educational purposes to be used by Museum staffand its associates. The wishes of the interviewed person will be respected regarding privacy of contents of the tape. No copy for third parties will be made unless permission is obtained in writing from the person interviewed. The person interviewed may request a copy of their own tape. The price of this copy will be the pdee of the tape. Afler the death ofthe person interviewed, the tapes will be considered released as to privacy. If the family of a person who passed on requests a tape and none has been made before, one copy will be made for the price ofthe tape. Although the tapes are not produced for use, the Museurn Auxiliary will make copies for responsible parties. & donation of$%5.O0tothe educational fund ofthe Auxiliary is requested for the task. The information contained in each tape is considered property of the Museum. No public use may be made oft. Educational use, in an)onon»nzo situation, is allowed. 5. Repository objects not belonging to Ihe Museum may be accepted for long term storage and curation. The Museum is the marine archaeology repository for the State ofTexas. The Museum Archaeologist is the curator of this collection although care is the responsibility ofthe Collection Manager. Adequate funds to provide for the care of the objects for the terrn of the repository agreement rnust corne with the collection and the director must give his approval. An agreementfor state-associated held-in-trust colleciions mus be concluded that identifies the agency, institution, objects/collections/documents, and housing/curation criteria for which stewardship is transferred. This Held-in-Trus/ agreement is made when stewardship of collection is transferred from to curatorial facility. All paper records for state-associated objects are kept in a secure record storage room. All electronic records are stored on ihe city servers at City Hall and backed up once a week on an exiernal hard drive. An annual report of all activity wi(h state-associated collecions will be submitted to THC. D. Library Collection The library is maintained as a non-circulating reference collection of books, periodicals, and other rnaterials for use by the museuin staif. Visitors may be allowed use ofthe library with permission of the director. The material contained in the library relates to the col!ection and interests ofthe Museum. The Librarian is responsible for care ofthis collection. Staffis encouraged to submit requests forthe purchase ofmateria] that wili enhance knowiedge in their area ofexpertise. Books are acquired by purchase or donation. Materials are purchased only with approval ofthe director. Materials in this collection are not accessioned, although donations are acknowledged. Library materials are subject to continued use and by their nature might be outdated by new information. These materials are considered expendable and may be disposed of at the discretion of the director. E. Archives Collection The Museum collect archival materials, ineluding photographs that represent the cuftural history ofthe peopfe of South Texas. These materials are generaily not stable enough for use in exhibits, but copies may be used in exhibits or for other educational purposes. Interested visitors may be allowed access to this collection at the discretion of the director. These materials are accessioned and are the responsibility ofthe Museum Librarian. Items may be added to this collection at the discretion ofthe director. DESTRUCTIVE ANALYSIS Destructive analysis is defined as an activity that alters the appearance or condition of an object. 6 Destructive Analysis of repository objects may only be done with the permission of the Texas Historical Commission, or the agency to which the object belongs. Frior to the analysis, a research proposal must be submitted to the Museum for evaluation that includes research goals and objectives, q hons of researcher, and specfic samples ur objects k/ be sampled. The loans will be made to the institution with which the researcher is associaied. /7 the proposal /x for state-associated hwld-h+1ruxt collections and /x rejected, an appeal can be made to 7YfC Destructive analysis may be warranted ifthe foliowing conditions 1) The object to be ana!yzed is not unique ue within the Museum collections. 2) Sacrificing the object or a part of the object will benefit science or will improve the Museum's conservation efforts. 3) The proposed analysis is highly likely to produce useful results and the institutions or individuals who perform the analysis are competent. 4) The analysis will be purfbnnod in a timely manner. 5) Results nfthe analysis will be published in a scientific journal in a timely manner. 6) The Museum Director and the owner of the object approve the analysis (if it is part of a repository collection). An object may be considered for destructive analysis if: 1) The analysis will contribute to the deve of more effective conservation techniques. 2) The analysis will provide answers to historical, archeological, or scientific questions that can be answered no other way. 3) The artifact is not unique. Once an object has been selected for d lysis the fo will be used: 1) The object will be thoroughly recorded with respect to its shape, size, mass, special etc., prior to submission for destructive analysis. The due dates of the loan will be tracked and exiended or recalled/returned as appropriate. 2) New records and results of analysis will be appended to the existing accession files. 3) Copies ofal! resulting articles will be filed in the Museum library. 4) The object will nol be deaccessioned. 5) All unused portions will be returned to the curatorial facility. DEACESSIONS AND DISPOSAL � Introduction For most of its history the collection of the Corpus Christi Museum of Science and History was considered the core ofthe Museum and the piirpose and the reason for its existence. To20O5mnew mission statement was adopted which removed collecting from the mission of the Museum and made it a strategic objective to support the mission. Strategic Objective 13. The Museum will collect and prescrve unique specimens, artifacts, and ephemera which illuminate our three basic themes and support innovative programming. Strategic Objective C. To create new knowledge, Museum collections and resources will be shared with the public and researchers. There was no intention through this action to dirninish the Museurn's responsibility to care for the collection, but there certainly was the intention 10 limit the growth of the collection and to eliminate it as the central focus of exhibits and programs. 7 Deaccessioning is the formal process used to legaily and permanently remove an accessioned object from the collection. Disposition is the manner in which the Museum transfers a deaccessioned object to a new owner or destroys it. The removal of any accessioned object from the collection is a sensitive and potentially controversial issue. Because the Museum's collections are held in public trust, the Advisory Committee and staff nfthe Museum are under particular scrutiny when deaccessioning an object. Deaccessioning can strengthen the col management ofthe collection, and save money which can then be applied to acquisitions. A strong policy and sound practices are important in order to preserve the reputation ofthe Museum and avoid elaims on other objects from heirs, estates, or seliers. An attorney's opinion should be sought on any deaccession thought to be controversial. The deaccession process, once begun, should be completely public. Because the collections of the Museum are held in public trust, it is useful to note Article 4412a. of the Laws ofTexas Pertaining to Museums. The Attorney General ofTexas has specific authority to take legal action to protect and preserve items of property held in "public trust," that is, for the use and benefit of the public. The statute covers any corporation, trust, community chest, fund, foundation, or other entity which is organized for charitable, scientific, philanthropic, "or other civic or public purpose. This broad defiiiition includes museum collections. 0L Authority and Responsibility Any member of the Collection Committee may recornmend that an object be considered for deaccession. The deaccession process is initiated by submitting a Deaccession and Disposal Record form to the Collection Manager. The Collectio is responsible for confirming clear and unrestricted title to objects proposed for deaccession as well as checking for any restrictions, legal issues, or ethical concerns affecting deaccession or disposition. The Collection Committee reviews the proposed deaccession based on the Museum's purpose, scope of the col and guidelines covered in this poli and makes a recommendation to the Director who will then approve or deny the proposed deaccession and disposal method. Deaccessions and disposals approved by the Director are brought before the Museum Advi Committee for final approval. III. Guidelines for Demnrmno pmm Before approving approving any object for deaccession, elear and unrestricted title to 11 rnust be established. See applicable sections of this policy for more information regarding clear and unrestricted title. No object may be deaccessioned in order to provide funds needed for the operation of the Museum. Proceeds frorn the disposal ofan object must be used for co!Iection acquisition. Objects proposed for deaccession will be evaluated based on the Museum's mission, scope of the collection, and guidelines as outlined in this policy. An object inay be deax000aioncd for the following reasons: 1. To remove an object that that uo longer falls within the Museum's mission, purpose, or scope ofcollections; 2. To remove an object that is sufficiently represented by duplicates in the collection or has 8 been replaced by a superior example; 3. To remove an object that is inferior, determined to be unauthentic, or has critically inadequate or absent provenance documentation; 4. To remove an object which has suffered damage or deterioration beyond the point at which reasonable and affordable measures could be taken to preserve it; 5. To remove an object that is unlikely to be used in exhibits, prograrns, or research in the foreseeable future; 6. To remove an object that is potentially hazardous to objects in the collection or human health and safety; 7. To transfer to another museum, or educational institution, an object that is deemed to be miQuifinuntlymore useful and relevant to the collection oYthe other institution than that of the Museum; 8. To carry out a mutually beneficial exchange of objects with other museums or educational or scientific institutions; 9. To formally document the removal of an object that has been lost or stolen; 10. To comply with any legal statutes or court rulings; 11. To accomplish any other purpose deemed by the Museum Advisory Committee to be appropnate within the splrlt of this policy, the Museum's mission, and applicable lax'. Reposited collections are not owned or accessioned by the Museum and, therefore, cannot be deaccessioned by the Museum and are not covered under this deaccession policy. On!y the Texas Historical Commission has the authority to deaccession state-owned held-in-trust collections. Other repository collections may only be deaccessioned by the repositing agency. For inforrnation regarding deaccession and disposal of repository collections, see the Reposited Collections section in this policy. Natural History specimens have been brought into the Museum as part of field collecting by curators, honorary eurators, research scientists, or citizens. These fic}dcollections are evaluated and significant specimens are catalogued. Specimens from these field collections are considered accessioned at the tirne of cataloguing. Therefore, specimens from field collections that have not been catalogued are not considered accessioned and may be disposed of during evaluation without being deaccessioned. Reference materials for the Museum's library have occasionally been accessioned in the past Current policy dictates that the Museum does not accession library reference materials. For the purpose of docutnentation and consistency, reference materials that were accessioned will be properly deaccessioned and disposed ofaccording to this policy and supporting procedures. Reference materials that have not been accessioned are considered general Museum assets and may be disposed ofn/i1|wmutdeuooemmioning. Education collections were maintained in the Museum's past. This practice was primarily followed with Natural History specimens. The objects so classified hold Iittle or no monetary, scientific, or historic value. The Museum no longer maintains separate education collections. Objects that were accessioned but marked "education collection" are considered part of the collection and must be properly deaccessioned and disposed of according to this policy and supporting procedures. Objects tha were not accessioned and were marked "education collection" are not part ofthe co!!ection and not subject to deaccession. However, disposal ofthese objects rnust be carefully considered because ofthe similarity to accessioned objects. Objects under this circumstance will be brought before the Collection Committee for careful consideration. The Director will make the final decision regarding disposal. Live animals are a special collection under the care of the Museum Educator. The collection is not accessioned and is exempt frorn this deaccessions and disposal policy. See the special collections section 9 oft his policy for information. IV. Disposal of Deaccessioned Objects Deaccessioned object are removed from the collection by means of sale, exchange, donation, transfer, or destruction. The sale or disposal of surplus property from Museum collections is exempt from the provisions of City Ordinance Code Sections 17'4 by Ordinance 19350. Disposal of any deaccessioned object will be carried out in accordance with all applicable federal, state, local, and international laws, treaties, and regulations including but not Iimited to Laws protecting Plant and Wildlife, Antiquities, and Historic Properties, and the Import, Export, and Transfer, of Cultural Property. The Collection Manager is responsible for fully documenting disposal of objects covered under laws as outlined in procedures. Applicable ethical standards will be eonsidered in disposal decisions including those established by the American Association of Museums and the Society for American Archeology. In d of objects by exchange or donation, the Museum becomes associated with the receiving institution. The practices of the receiving institution will be considered to prevent the Museum from becoming associated with unethical practices. Deaccessioned objects will not be sold, or ownership otherwise transferred, to Museum staff, City of Corpus Christi employees, vo\uo1nern,cnenzber ofMuseum support groups, members ofthe the Museum or City's governing authorities, or representatives or family members of these individuals. A. Disposal by Sale Net proceeds received from the sale ofdeaccessioned objects will be used only to acquire new objects for the collection. If there is any question as to the value of an object, the Museum will get two inform outside appraisals on the object. These should document the objects authenticity and assure that the Museum does not accept less than market value for the object. Disposal of object from the col!eclion will never be through the Museum shop, or in such a manner that it involves an interested entity helping in the liquidation ofMuseum assets. The disposa by sale of any deaccessioned object requires the foliowing process: I. The Director will propose that deaccessioned objects from the Museum collection be declared surplus and request, in writingurecommondation of the Museum Advisory Committee. 2. The Museum Advisory Committee rnust approve the Director's recommendation for disposal by sale. 3. The Director of Finance will be notified by the Museum Director after the Museum Advisory Committee approves the disposal by sale. 4. The Director of Finance will make provisions such that proceeds from the sale will be placed in a Collections Fund of the Museum Foundation which is dedicated to acquisitions to the collection. B. Disposal by Exchange or Donation Deaccessioned objects may be disposed ofby exchange with, or transfer to, another appropriate rnuseum, educational, or scientific institution. 1 O Deaccessioned object wil! never be exchanged or donated to private individuals. Deaccessioned objects may only be transferred 10 private individuals through sale as outlined in this policy. C. Disposal by Transfer Deaccessioned objects may be transferred to the Museum's education department for use in educational programs. Objects subject to this action should have liftle or no market value, or historic or scientiflc significance. Any deaccessioned object transferre to the education department wi|l6e removed from collection storage, quarantine, or work areas. The object must be stored in an area dedicated to educational supply storage. The object is considered expendable and is no !onger covered under this policy. V. Guidelines for Donor Notification One ofthe crucial components in the deaccession process is the Tax Reform Act of 1984. Under its provisions, if the museum disposes (by sale, exchange, or any other method) of a donation within two years of a donation, the museum is obligated to notify the donor and the IRS by filing form 8284. This provision applies if the donor has claimed a charitable deduction under Section 170 of the IRS code of more than $5,000 for either a single item or an aggregate of items donated to one or more institutions. The Act requires that ifthe value is more than $5,000, the donor must supply an appraisal sumrnary to the museum. The museum is subject to a $50 fine if the preceding is not adhered to. Once the Museum establishes its clear and unrestricted title to an object, the donor has no legal interest in it. If a deaccession no longer falls under the statute of limitations of the Tax Reform Act of 1984, it is then only a practice of goodwill to notify the donor or heirs of the disposition of a collection or object. It is possible to label the funds or new acquisition purchased with those funds as a gift from the donor. Appropriate action will be considered by the Museum Director on a case-by-case basis. VI. Required Documentation The Collection Manager, with delegation ofduties to the Registrar, is responsible for ensuring all proposed deaccessions and disposals are properly documented in accordance with this policy and the supporting procedures. A complete record of each deaceession, including a complete Deaccession and Disposal Record forrn, and all supporting docurnentation ofwil! be kept permanently in a secure storage room. LOANS Whether objects are bein into the Museum or sent out ofthe Museum (Ioaned), they are Ioans and subject to the laws pertaining to bailment. The Collections Committee must approve all conditions and terms associated with Ioans. The Corpus Christi Museum of Science and History Collections Committee is composed of the Museum Director, the Collections Manager, and 1 I Librarian and other individuals as appointed by the Director. The Executive Director of the Texas Historical Commission or his designee is included as a member of the Corpus Christi Museum of Science and History Collections Committee in all matters pertaining to the use of the La Belle Collection. Incoming Loans When an object is brought into the Museum, the lender is the bailor (the giving one) and the Museum is the bailee (the one receiving). A) The general rule is that any object taken into the custody of the Museum should receive care equal to or better than that devoted to objects in the Museum permanent collection. It should be carefully packed and transported, proper security and climate control should be provided and, above all, it should be accompanied by proper documentation. B) Any appropriate owner may be asked to lend an object to the Museum. The Collection Manager with the approval of the Collections Committee initiates all loans. The Collections Manager is responsible for the care and security of the object during the period of the loan and securing insurance coverage prior to the loan. C) The Collections Manager is responsible for documentation of loans (both outgoing and incoming) including the completion, execution, and distribution of all forms. The Collections Manager is responsible for packing, transport, and registration of the object. Details concerning handling, transportation, and care must be approved by the Collections Committee. D) There is a single loan form for both incoming and outgoing loans, and all such actions must adhere to the conditions and terms as stated on this form. The lending institution's loan form may be used with the concurrence of the Collections Committee. E) No loans will be accepted except for special exhibits and research. The loans should serve a public purpose. In carefully considered cases, there may be exceptions but only with the formal agreement of the Museum Advisory Committee. F) Photographs of the object may not be taken without permission of the lender. G) Loaned objects may not be loaned, assigned, mortgaged, claimed, or in any way encumbered by the borrower. H) Objects may be taken into the Museum for a very short term for study, identification, attribution or evaluation. Only the Director or Collection Manager may accept objects for this purpose. Under this pol icy: 1) Objects may never be appraised by Museum staff members. 2) The Collections Manager supplies a receipt of delivery which outlines the terms of this special type of loan. 3) The Museum and its employees are held blameless in the event of loss, damage or deterioration of the item(s). 4) Any item(s) not claimed within 30 calendar days becomes the property of the Museum. 5) In cases where the owner is unknown, public notice must be given before the item is accessioned. Only the Advisory Committee, with the advice of legal counsel, may approve the accession of such unclaimed loans. 6) Proper notice will be given to owners in cases where the owner is known. This will notify 12 them that the Museum w11 claim the item unless it is removed from the Museum premises. 7) Until the item is retrieved, it will be stored and maintained at the owner's expense. 1) No commercial exploitation of the fact that the object has been exhibited by the Museum may be used. This is to offset object being sold or auctioned at higher prices because of their selection for a Museum exhibition. J) No employee ofthe Museum or member ofthe Advisory Committee may lend an item to the Museum without public discussion and approval by the Advisory Committee. This is to avoid any appearance of self-dealing. Outgoing Loans When an object is lent out by (he Museum (Outgoing Loan), the Museum is the bailor (the giving one and the borrower is the bailee (the one receiving). The purpose of Ioans shall be to reach a wider audience and facilitate research. While on loan, objects must be afforded u level of care and protection aaprovidsdbvaodmuhiecttu1hunrittenuppnoYu/ofthe Collections Committee. Loans for exhibit purposes are made to a qualified institution and that institution shall assume responsibility for the proper administration of the loan and the care and security of the object(s). Loans for research purposes are made to a qualified institution with which the researcher is affiliated and that institution shall assume responsibility for the proper administration of the loan and the care and security of the object(s). A) The collections ofthe Corpus Chrisi Museuin of Science and History, including Texas Historica Commission collections, are held in public trust and maintained for the benefit of the people of Texas. Loans are made only to qualified institutions consistent with this poli Loans ofLa Be/le artifacts must be approved by the Collections Committee with a written affirmation by the Executive Director of the Texas Historical Cornmission or his designee. B) To assure objects for loan receive proper care and security, the requesting institution must present for approval of the Museum Collections Committee, verification of proper environmental, storage, exhibition, and security conditions and procedures for the handling and transit of objects. To this end, the requesting institution will complete a Revised Standard Facility Report as adopted by the Registrar's Committee of the Arnerican Association ofMuseums. On-site inspections by Museum staffrnay be required prior to agreeing to a loan ofobjects. The requesting institution should have a trained registrar, curator, or director to check inventory and prepare condition reports on materials borrowed. Following American Association of Museums and Accreditation and Review Council Guidelines, the requesting institution should have environmental controls and a fire marshal-approved fire suppression system. For exhibit loans, the facility should have standard museum security including: 1) Monitored i and egress, 2) Personnel circulating in the exhibit space with responsibility for security while the faciiity is open to the public, and 3) An electronic intrusion alarm system monitored by a certified central station or local law enforcement when the museum is closed, 4) Or a 24-hour security guard on duty beginning with the unloading and installation ofexbihb materials. A request for any variation in the above conditions must be made in writing by the institution for review 1 3 by the Coijections Committee. The request must include evidence of an acceptable arrangement to safeguard the stability and security of the loaned objects. Exhibition or research conditions shall be a part ofthe loan contract and evidence of adherence may be required. The use ofthe object(s) for the stated purpose must be adhered to by the borrowing institution. Packng and transportation methods are stated on the loan contract. The object(s) must be packed and transported in the safest possible way in accordance with the nature and condition ofthe object(s). C) The Collection is responsible for ensuring that a Condition Report is completed on objects prior to out-going loans and afier the loan is returned to the Museum. All objecls are catalogued before they are Ioaned. A Condition Report is required of the borrowing institution upon receipt of the loaned objects and prior to packing for return to the Museum. A copy of the Condition Report must be provided to the Museum. Damage or loss of objects while in transit or during tbe loan period rnust be reported verbally to the Collections Manager within 24 hours of the discovery of the loss followed by a written report detailing the extent and circumstances of the loss within two business days. Objects on loan cannot be altered, cleaned, or repaired unless permission to do so in writing is provided by the Collections Committee prior to any action being taken. D) Fine arts insurance for all objects sent out on loan is required. bmorance coverage shall be provided by the borrowing institution, unless the institution provides an acceptable acceptable bond. Current aiid reasonable insurance valuations are the responsibility of the Museum. With regard to the LaBelle collection, further approval of the Executive Director of the Texas Historical Commission or his designee is required. Under most circumstances, insurance io°fiue arts, all risk, wall-to-wall" coverage and shall remain in effect throughout the duration ofthe loan. The required arnount of insurance depends on the artifacts loaned. A certificate of insurance or acceptable bond is required from the borrowing institution prior to transportation o{ the loaned object and iu kept oofi|emtthe Museum with a copy provided to the Texas Historical Commission for La Belle artifacts. 1) The Museum shall be named as an insured party in the poli and the pol shall provide that notice shall be given to the Museum ten business days prior to cancellation or reduction in the amount of the policy. The Texas I-Iistorical Cornmission shal] be named as an insured party in the policy in the case ofLa Belle artifacts. In the event ofcaricellation or reduction ofthe insurance, the loan will then be subject to cancellation. Failure to maintain adequate insurance coverage in no way releases the borrowing institution from liability for loss or damage regardless of whether or not the Museum monitored the borrowing institution's insurance. 2) If a self-insured local, state, or federal governmental agency requests the loan or if the borrowing institution is unable to provide insurance, a request for an exception rnust be made in writing by the institution for review by the Coilections Committee, The request must inelude evidence of an acceptable plan of self-insurance or other arrangement to satisfy any liability that might result from a loss under the terms ofthis Agreement. ° E) An object(s) on loan must be returned promptly when the loan period expires. As appropriate, a reminder letter may be sent by the Museum to the borrowing institution. The Museum reserves the right to cancel or deny the renewal of any loan. The Museum will provide appropriate information and review and approve all text and Iabels relating to the exbibit of the loan in order to ensure accuracy and consistency in int cpnztu1ion. Any changes rnust be approved in writing by the Co]Ieetions Cornmittee. The object(s) on loan must be available for research purposes at all times. F) The borrowing institution has Iwo working days to chalienge the description ofthe items loaned. These challenges are subject to negotiation. Afier two working days, however, the borrowing institution 1 4 must comply with the physical description. G) Except for condition reports, all photography, reproduction, or replication of a borrowed object(s) requires prior written approval by the Collections Committee. Lighting conditions, environmental and/or applied chemical alterations, and other conditions of reproduction and replication must be approved in writing by the Collections Committee. Photographs, reproductions, and replicas may only be used for research, exhibition, and educational purposes. Commercial use of loaned objects is prohibited. H) With regard to the La Belle collection, the Texas Historical Commission and State of Texas must be credited in a suitable manner in all publications and exhibitions associated with the loaned object(s), including photographs and reproductions, and must receive two (2) copies of any news and other publication associated with the loaned objects. Other collections may require specifically worded credit lines. Otherwise the credit line should read, "From the Collections of the Corpus Christi Museum of Science and History, Corpus Christi, Texas." I) There is a single loan form for both incoming and outgoing loans and all such actions must adhere to the conditions and terms as stated on this form. Loan Contract Conditions 1) The Borrower agrees to abide by the guidelines for loans set forth below. This Agreement must be signed before any objects will be transferred to the Borrower. These conditions may be changed only in writing and with the approval of the Collections Committee of the Corpus Christi Museum of Science and History. Applications for change must be made through the Collections Manager of the Museum. 2) The Museum reserves the right to recall the loan by written notification at any time if these conditions are not met, and is not liable for any consequential damages resulting from such action. The Borrower has ten working days to comply. 3) Loans are made only to qualified institutions, not to individuals. Loans are made to the institution with which the individual is affiliated and that institution assumes responsibility for the proper administration of the loan and the care and security of the object(s). 4) Objects on loan may not be altered or modified in any way, except as stated in the purpose of the loan (e.g., destructive analysis) and as approved in writing by the Collections Committee. For a destructive analysis loan, if portions of the original object are not destroyed during the analysis, they must be returned. 5) The Borrower will exercise due care in the custody, handling, transport, unpacking, and repackaging of the loan. 6) Upon unpacking, the Borrower will immediately acknowledge receipt of the loan by signing and returning a copy of the inventory and receipt that will accompany the shipment. A copy is to be retained by the Borrower. 7) For return, the loaned object(s) must be packed in the same or better manner as received and with the same cases, pads, and packing materials, unless damage has occurred, in which case replacement or substitution can be obtained with permission of the Museum. Handling and shipping of the loan will be at the Borrower's expense. 15 8) The Borrower agrees to provide insurance, or provide a bond to the Museum. Insurance is fine arts aUcimkoud"�u�k/'p/aU". A acceptable , risk, ' --,_- -' the Museum before the loan is placed in transit. The Museum (or, in the case ofLa BelIe artifacts, the Texas Historical Commission) shall be named as an insured party and the insurer tnust be required to notify the Museum prior to cancellation or reduction of the amount of the policy. 9) The Borrower rnust maintain constant and adequate protection ofthe loaned object(s) to minirnize the risk of theft or damage from hand!ing. The Borrower also rnust maintain constant and adequate protection ofthe loaned object(s) from the hazards offire and flood, exposure to harmful light Ievels, extremes of temperature and relative humidity, pest attack, and harmful atmospheric conditions. 10) Any changes in the condition ofthe Ioaned object(s), loss, theft, or datnage to the loan in transit, during storage, or exhibit mus be reported within 24 hours of discovery to the Collections Manager (361- 826-4659). A written condition report, and photographs, ifrequested, must be sent to the Museum within 72 hours ofthe discovery ofthe loss, theft, or damage. 11) In the event of damage to the loaned during shi or while in the custody of the Borrower, the Borrower is responsible for all conservation costs necessary to return the loaned ob eo1(s) to their undamaged condition, if possible. The Museum may, in its sole diseretion, ion, determine that an object is damaged beyond repair and may select an alternative rernedy. 12) The lender is secured and held blameless from all losses, claims, liabilities, damages, costs, and expenses (including attorney's fees and costs) arising from, or in connection with, a loan agreement. 13) The loaned object(s) must not be photographed, filmed.televisedmodenwbse reproduced individually without the express, written prior consent ofthe Col!ections Cornmittee of [he Corpus Christi Museum of Science and History, with the exception that general views of an exhibition may be taken for publicity or documentation purposes. 14) The object(s) must be available and accessible to the Museum at all times for research purposes. 15) The J3orrower shall ensure that all !oaned on exhibition and/or in publication are identified as the property of the Corpus Christi Museurn of Science and History or other credit line as stipulated in the loan agreetnent. 16) The Museum will review and approv all text and labels relating to the exhibit nfthe loan in order to ensure accuracy and consistency in i nn. Any changes to the text must be approved in writi prior to exhibition. 17) The I3orrower must provide two copies to the Museurn of any news and other publications resulting from the exhibit or loan research on the objects. 18) Third party loans are prohibited. Any third party wishing to borrow objects on loan rnust contact the Museum in order that a separate loan contract may be developed and subsequently approved by the Collections Committee. Loaned objects may not be assigned, mortgaged, o(uin'ed, or in any way encumbered by the Borrower. 19) Transportation of loaned object(s) from one institution 10 another is prohibited. The borrower must return the loaned objects to the Museum prior to being loaned to another institution. 1 6 20) This loan agreement is in effect from midnight on the specified beginning date to midnight on the specified due date. The maximum loan period is one year, but may be reviewed and renewed annually. 2l) The object(s) loaned to the Corpus Christi Museum of Science and History must be promptly reclaimed. Under State Law a lender is considered to have donated loaned property to a museum if the lender fails to file an action to recover the property on loan to the museum within two years. 22) No commercial exploitation of the fact that the object has been exhibited by the Museum may be used. This is to offset objects being sold or auctioned at higher prices because of their selection for a Museum exhibition. 23) In the event of any conflict concerning this contract, this contract will be construed in accordance with the laws of the State of Texas. Venue for any action resulting from this contract shall be in Nueces County, Texas. MUSEUM ETHICS POLICY "Corpus Christi, The City of choice where we make it happen." This vision statement was developed by the executive team for the City of Corpus Christi and City department heads. The mission statement, developed by the same group, is to "provide exceptional service to enhance the quality of life." The Museum is a department of the City of Corpus Christi. This vision and mission is reflected in the daily commitment of those involved with providing services to the community through fulfilling the Museum's departmental mission. Governance City of Corpus Christi: The chief executive officer of the City under the voter approved City Charter and the City Council adopted Ordinance Code is the City Manager. The City Ordinance Code is the 17 guiding policy for the Museum and all other City departments. As a practical matter, ordinances are developed for City Council consideration by City administrators with specialized expertise resident in various Cty Departments (e.g. Finance, Budget, Emergency Management, Human Resources, Legal, Risk Management, etc.). Administrative policies, procedures, and ethical principles to which City employees are subject similarly caII upon the expertise from peop!e in various departments and are submitted to the City Manager for his approval. The administrator of the Museurn Departrnent, the Director, is appointed by the City Manager. Policies that are specitic and unique ue to the Museum are developed by the Museum Director as prescribed by the City Ordinanee Code. Museum ent: There are specialized laws, polici and ethica that apply to the Museum and not to other City departments. It is the Museum Director's responsibility to administer the Museum under the highes standard of conduct whether that is in the realm ofthe City ordinances, City administrative policies, City established procedures, vr the more opeoifiopolicies and procedures of the Museum. The Museum Director must develop those policies, procedures, and ethical guidelines that pertain exclusively to the Museum. Documents defining these policies, procedures, and ethical guidelines are typically reviewed administratively by the City Manager and/or a desi otud Assistant City Manager. Museum Advisory Board : The governing body ofthe City, the City Council, established a methodology by ordinance that delegates review of policy issues that are exclusive to the Museum to a 12 member Museum Advisory Committee "appointed by the mayor with the advice and consent of the city council." The City Manager is an ex officio member of the Museum Advisory Committee. Members are trained by the Museum Director and gain institutional experience by serving staggered three year terms, with a two term limit. This provides the City with a group of interested citizens with training and expertise to review the policies and procedures that are unique within the City to the Museum. Their advisory recomrnendations are given great weight by the Museum Director, City Manager, and the City Council. The advisory board shall serve as an advisor to fhe inuseum department departmeni and to the cily council in matters of support and development of the museum. The board inay adopt comprehensive policies relating ` to the: (1) Management of collections; (2) Acquisitions for the collection; (3) Disposition and deacquisition ofobject in and for the collection; (4) Use of museum facilities. When adopted by the advisory board and approved by the city manager, the director of the rnuseuin shali implement such policies. The Friends ofthe Museum, although not a City entity, provides significant funding to support the mission nf the Museum. Because o{ this role, review and revision ofthe Museurn's mission is done jointly by the Museum Advisory Committee and the Friends Board of Directors. S the Museum Advisory Committee adopts the mission statement which is then subject to review and approval by the Cily Manager. The Museum Director is responsible for training Advisory Committee members, Board members of both the Friends of the Museum and the Museum Auxiliary, staff, and volunteers in the policies, procedures, and ethical guidelines uodcrvvbicb<homouocunooyoratc». It is also his responsibiiity to make certain that all those who work for and on behalf of the Museum understand and support its mission and public trust responsibilities as both a department of the CiIy and as a rnuseurn. 18 Under the City and Museurn ethies policies, Museum staff, volunteers, members ofthe City Council, the City Manager, and members of the Museum Advisory Committee: • understand and fulfill their trusteeship roles and act corporately, not as individuals; • act legaily, ethically and with cultural sensitivity; w conduct themselves in such a way as to avoid conflicts between personal interests and affiliations and the operations, interests, and reputa inn ofthe City and Museum. � protect, maintain, and develop the Museum collections an programs and its physical, human, and financial resources in support of the mission of the City and the Museum; • are responsive to and represent the interests of the Corpus Christi community; • maintain relationships in which shared roles are recognized and separate responsibilities respected; • maintain working relationships that are based on equity and mutual respect; • ensure that professional standards and practices inform and guide museum operations; • ensure that po!icies are articutated and prudent oversight is practiced; • promote the public good rather than individua financial gain. Collection The Museuni collection is owned by the City ofCorpus Christi. The Museum a!so manages state-owned collections as the designated marine archeology repository for the State of Texas and as a repository for state-owned terrestrial archeology collections. Care of the collection is the responsibility nfthe Museum Director working in co 'uuctiou with the col!ection committee. The collection committee is chaired by the Coflection Manager and inc!udes the Registrar, Museum Archeologist, uudMumoumo[ibrudoo. On issues involving the state held-in-trust archeology collections, the Executive Director of the Texas Historical Commission or his designee is also a member ofthe collection committee. In 2005 a new mission statement was adopted which removed collecting from the mission of the Museum and made it a strategic objective to support the rnission. Strategic Objective B. The Museum will collect and preserve unique specimens, artifacts, and ephemera which illuminate our three basic themes and support innovative programming. Strategic Objective C. To create new knowledge, Museum collections and resources will be shared with the public and researchers. There was no intention through this action to diminish the Museum's responsibility to care for the coI1ection but there certainly was the intention to limit the growth of the collection and to eliminate it as the central focus ofexhibits and programs. In part to fulfihI this intent, collection staffjob descriptions were revised eliminating "curator" as a functional job title to deemphasize the connotations associated with the curator title. The provisions ofthe Collection Management Policy continue to provide important guidance on collection issues and management of the collection is now the responsibility of the Collection Manager. The Museum Director develops, the Advisory Committee adopts, and the City Manager approves the Collection Management Po!icy which includes guidelines guidelines for proper ethicat behavior. The Museum Director and the collection committee are stewards of collections owned or otherwise in the custody of the Museum. They are responsible for en ' that the collection: • supports the Museum mission; • objects receive the highest standards ofcare; m is properly managed, documented, and accounted for; • objects and associated information are pub!icly accessible within appropriate limitations; • acquisition, disposal and loan activities conform to the Museum's mission and public trust 1 9 responsibilities; � disposal through sale, trade, or research activities is solely for the advance nt of the Museum's mission; � sale proceeds from nonliving coileetions are to be used consistent with the established standards of the Museum's disciplines, but in no event shall they be used for anything other than acquisition of collections; • related activities are used to promote the public good rather than individual financial gain. It is the responsibility of the Collection Committee to recognize the unique and special nature of human remains, funerary, sacred, and cultural patrirnony objects from all cultures as the basis for all decisions concerning current or potential collections. Programs The change in rnission in 2005 eliminated the collection as the central focus of exhibits and programs. The new mission is as follows: The rnission of the Corpus Christi Museum of Science and History is to present the story of the cultural crossroads ofthe New World. With a unique coufluen000foa8/nalbiobzry,nukauoe, people and environrnents, the South Texas area has served as a stage for the ongoing discovery of the Americas. Through innovative programs in history, culture, and science, the museum is committed to enlarging a shared understanding of our history and heritage as well as the impact and importance of science to our lives. By tel!ing this story, the Museum will inspire a thirst for knowledge, context, and understanding. Under this mission, the central focus of Museum progra and exhibits tell stories that need to be told regardless mfwhether those stories are s by collections, All members of the Museum staff as well as Museum volunteers are a party to fulfilling this mission. The designated person to lead this coordinated effort is the Museum Educator working with a Program Comrnittee that includes the Science Educator and History Educator, volunteers, and other staff who assist in the development and delivery of programs and exhibits. It is the Program Committee's role to make certain that prograrns and exhibits: • are based on good scholarship; • are accessible 10 all and the widest possible audience are encourage to participate; • respect pluralistic vaiues, traditions, and concerns; • fulfill the Museum's mission and values even when they involve relationships with external entities; • promote the public good rather than individual financial gain. • CLEAR TITLE Simply stated, title is the possession of all the rights of ownership to an object. Within this definition are many qualifications and s .8ut there are two general considerations regarding title to an object: one is the cornpleteness of the title; the other is the qualily of the title. Once possession ofan object is obtained, the museum then needs to consider whether or not it also possesses the copyright and trademark right , and whether or not the donor has put any restrictions on the object (i.e. that it must be exhibited six months out ofthe year, or only with certain other objects, or that it may never be loaned). The museum must also consider the authenticity of the documents 2 O showing title. It must make sure that the object is truly as it is presented and that the documents are sufficient to insure title to the object. A. Determining the Owner One issue to consider is whether or not the perso representing himself as the own r or duly authorized representative of the owner is, in fact, that person. While the rnuseum cannot interroga e each donor, the museum Deed of Gift form should ask that the donor affirm that he is the true owner of the object, or a duly authorized representative ofthe owner. While gathering background bnformationonthe object, it may be possible to ask if anyone else, legal heirs, etc., might have an interes in the object. If the gift io given by an estate din prudent to have all heirs or their authorized representative sign the Deed of Gift. A minor may not legalty be able to give an object to the museum. The advice of a professional should be sought in these questionable instances. Although there is a remedy through the court if the museum acquisition is later found to have fau!ty title. lfthe inuseurn can show damages, then they may be able to show misrepresentation on the part of the donor. Iii the case ofpurchases, where the title or the object itself proves fautty, there is also remedy available through the courts. The Uniform Commercial Code provides several recourses for recovery. One is based on contract and requires that the museum prove that the seller misrepresented himself or the object, either on purpose or through negligence. Another section deats with objects that may be bought in good faith and sold in good faith as one thing but in subsequent research, turn out not to be what was offened. Several states have statutes regardi the sale of an object from a professional dculertnonnn- B. Stolen Objects Perhaps the biggest question concerns what happens ifthe rnuseum acquires an object and the object turns out to have been stolen? The general rule in the United States is that a thief cannot convey good title. Title remains in the hands of the person suffering the theft and the museum must return the object or its value. There is a statute oflinoiiudooa upon these claims, but court decisions vary and the museum cannot take the chance of being an innocent victim in this instance. C. Smuggled or Illegally Acquired Objects One ofthe most common of title has 10 do with objects removed from the country of origin. These objects may not be challenged until mariy years after the original acquisition. Objects from American Indian tribes may be sought for return on the basis of foreign nation status. Pertinent treaties and statutes should be consulted in all instances: "Treaty pfCooperation Between the U. S. and Mexico for the Recovery and Return of Stolen Cultural Properties," "U. S. Statute Regulating the Importation of Pre-Columbian Monunzentu| or Architectural Sculpture orMuro)o," "The American Indian Religious Freedom Act," etc. As always, laws concerning the collection, sale and trade of fish, wildlife and plants, should be consulted: "The Legacy Act," "Endangered Species Act" of|973,as amended, "Marine Mammal Protection Act," "Migratory Bird Treaty," "Bald Eagle Protection Act," "Antarctic Conservation Act" of 1978, etc. 2 l "The Antiquities Act" of]906, and the Resources Protection Act" of|A79, should be consutted in all cases of objects excavated or given by people working in archeological digs. D. Restrictions The Collections Management PoIicy provides guide]ines for considering exceptions &othoru|u that the museum will not accept any gifls with restrictions on them. Restrictions may range from never disposing of the object to only disposing of the object to another educational institution. While the former is almost always unacceptable, the latter should be considered based on the quality ofthe object. The language of any restrictions should be examined carefully. E. Copyright Special property rights which the creator may have in the work are distinc from the right to possess the work. Copyrights may be divided into five segments: the right of reproduction, tho right of adaptation, the right of distribution, the right of performance, and the right to display the work publicly. The "Copyright Lovv" of 1978 should be consulted in all instances. Before l970, when amuseum acquired an object, it was generally held that it acquired all ights. This is no longer true. Even ifthe objects were created before 1978 and previous publications show no "c", the work can still be considered copyrighted. This automatic copyright may be negated by publication of the work without the symbol. However, public display, donation, or sale of the work is not necessarily synonymous with publication. In other words, a museurn woutd be wise, in all instances, to have docurnents conveying copyright attached to purchases or gifts. Works created for hire are considered to have the copyright invested in the employer, since the term "for hire" can be disputed, this situation of copyrights should be covered in a contract. Works creat dhwb/n:l97RwithouNmoon{i000{copyriob<cmnno1beomurncd1ohavethnironyyright vested in the rnuseum. If a work is considered for reproduction, adaptation, etc. this must be checked. K the copyright does not accompany a work, the rnuseurn would do well to consider whether or not those rights are worthwhile to acquire. The museum should ask what the potential interests ofthe museum might be as well as those of the person retaining the copyright. 22 American Association of Museums, and Association of Art Museum Directors. Gifts uf Property, A Guide for Donors and Museums. Washington, D.C.: American Association of Museums, 1985. Buck, R.A. and J.A. (3i|boore. The New Museum Registration Methods. Washington D.C.: American &nmooid000fMuseums, 1998. Edson, Gary. Museum Ethics. London and New York: Roudedge,|997. Malaro, Marie C. A Lega Priiner on Managing Museum Collections. Washington, D.C.: Smithsonian Institution Press, 1985. Naumer, Helmuth J. Of Mutual Respect and Other Things An Essay on Museum Trusteeship Washington, D.C.: American Association ofMuseums, 1477. Porter, Daniel R. "Current Thoughts on Collections Policy." Technical Report 1. Nashville, Tennessee: /\/nchnauAxuooio1ion for State and Local History, 1985. Porter, Daniel R. "Developing a Collections Management Manual." Technical Report 7. Nashville, Tennessee: American Association for State and Local History, 1986. Simmons, John E. Things Great and Small, Collections Management Policies. Wuabin8ton,D.C.: American Association of Museurns, 2006. Ullberg, Alan D. and Ullberg, Patricia. Museurn Trusteeship. Washington, D.C.: American Association o[ Museums, l98l. 2 ] Purpose of the Museum Collection Purpose and Responsibility Acquisitions Collection Description Destructive Analysis Deaccessions Loans Museum Ethics Policy Museum Clear Title Guidelines Appendixes: Table of Contents 1 2 3 4 7 7 12 18 21 Bibliography 23 Attachments: A. City Code, Chapter 2, Article III, Section 2-51 - Creating a Department B. City Code, Chapter 2, Article IV, Division 5, Section 2-90 - Museum Advisory Committee C. Laws of Texas Pertaining to Museums D. City Code, Chapter 2, Article IV, Division 1 - Attendance Requirements, Term Limits E. City Code, Chapter 2, Article V, Division 1 - Code of Ethics F. "Deed of Gift" Form Museum Collection Deaccession Process MJV / ' Disposal , Member of V Committee submits Deaccession and Record form,' to Collection \. Manager / A =, / Yes or Does Dire approve proposed deaccession disposal ethod? or and No No Collections Committee Collections Manager confirms checks restrictions, issues, or concerns Y title, legal ethical ; Committee reviews proposed deaccession based on the Museum's purpose, scope of the collection, and 1 Policy guidelines. /\ /Doe /Fommitte recommend deaccession id disposa tho Yes Advisory Committee oes,Adviso__....... Committee approve? , .._ / Collection. Yes. ''� deaccessed Deaccession proposal presented to Museum Advisory Committee by Director Yes 2 u Q v��y `v� ���� �� n`` .��.� No Deaccession proposal reviewed by City Manager or designee/- Doe's City / or designee _ Mana r g yv �No� v / Collection v '' p r / kept / �� v approve \ \deaccession V Technical Appeal Process plies Director beleire �`' Event/Action conflicts '� ,•-•;--- ; , _ i ! Event/Action _. `; l MJV proposes P P �` Event/Action that i ', effects exhibits or ! collections. ,'' '�.�with Museum's mission '�, or operations? N 1 Nom, commencesj" Yes Yes Event/Action proposal by City Manager or designee // Does City / or designee N. Manar ' Event/ /Event/Action\ `` reviewed approve N� Action? No 0 does not \ commence 'N City of Corpus Christi 6/26/2012 City of Corpus Christi August 16, 2010 To: From: Angel R. Escobar City Manager Rick Stryker Museum of Science Hist Subject: Proposed Changes to Policies On May 6, 2010 the Museum Advisory Committee adopted changes to Museurn policies that require City Manager approval. 1) Reduce the number of free admission days from 14 to 10. The new policy will eliminate the free days in September, October, April and May. This would increase admission revenue for the Museum (1020-308471) by $1,356.75 and the Ships (1020-308550) by $1,014.75. 2) Increase the charge for birthday party attendees over the 20 person limit from $5 to $7. In 2009 1,336 people attended 78 birthday parties in the Museum. It is not really possible to estimate the amount of money earned from this policy change because the data is not available. The primary puipose of this policy change is to limit the number of participants in a birthday party event to the capacity of the room. The revenue earned from this policy change would not be significant, 3) Impose a $7/person charge for rental event participants over the 50 person limit. In 2009 there were 16 social events during normal business hours to which this fee would have applied. It is not really possible to estimate the amount of money earned from this policy change because the data is not available. The primary purpose of this policy change is to limit the number of participants in an to the capacity of the room. The revenue earned from this policy change would not be significant.' With your approval, these policy changes will go into effect. C Li-sr)(itat-e-) Approved: 0 Margie C. Rose g R. Escobar AUG 2H ,010 Corpus Christi Museum of Science and History Admission Fee Policy Advisory Committee Adoption: 1/07/2010 Approval: Date: gel R. Escobar City Manager Fee Schedule: Adults (ages 18 and over) $12.50 Senior Citizens (age 65 and older) $10.00 Military (with ID) $ 9.00 Students (with ID, age 13 and older) $ 9.00 Children (ages 5 — 12) $ 6.00 Free Admission: • Children through age 4 • Students on group school tours (a $3.00 per student fee is still charged for students wishing to visit the ships) • Children under age 13 on Saturdays, 10 a.m. to Noon (a $3.00 per child fee is still charged for children wishing to visit the ships) • All visitors will be admitted to the Museum exhibits free on the first Thursday of each month from September through May and on the first Sundays in November, December, January, February, and March. (a $3.00 per person fee is still charged for those wishing to visit the ships) • Members of the Friends of the Corpus Christi Museum of Science and History • Museum Auxiliary volunteers Unaccompanied Children are not admitted Visitors under age 18 must be accompanied by an adult. At least one adult chaperone is required for every 10 children. Corpus Christi Museum of Science and History Birthday Party Policy Advisory Committee Adoption: January 7, 2010 Approval: Fee Schedule: $90 Members $150 Non-Members gel R. Escobar City Manager Date: Rental fee includes use of Junior League Lecture Hall for two hour period. Parties are scheduled Tuesday through Saturday at 10:00 A.M. to 12:00 noon or 1:00 to 3:00 P.M. Sunday parties are scheduled only from 1:00 to 3:00 P.M. Host is allowed 30 minutes prior and 30 minutes after for setup and take down. Up to 20 guests are included (any combination of adults and/or children) with a $5.00 fee per person over 20. That fee, if applicable, is collected at the end of the party. Cash, check, Visa or Mastercard is accepted for payment. • Reservations are only made with full payment. • Cancellation with a full refund takes 4 to 6 weeks. Scavenger Hunt is available for an additional charge of $15.00 Themed gift shop bags are available at $3.00 each. Museum provides: • Tables and chairs and cleans the room and takes out trash after the party. • Special recognition of birthday child with a foil crown and announcement over PA system. • Guests are encouraged to participate in, any Museum activities such as Saturday Craft Program or Treasure Hunt on Saturdays. (The Museum does not provide staff host or facilitator.) Host provides: • Host is responsible for decorations and refreshments. Food may be brought from home, from a deli, or pizza from an outside source. We have the phone number of a Pizza Hut that delivers to the Museum. (No helium balloons are allowed.) • Host may use mesquite trees behind the Museum for a pifiata. Host is to provide the pitiata, rope and stick. Corpus Christi Museum of Science and History Education Program Fee Schedule Adopted by the Museum Advisory Committee: September 6, 2007 Approved: Program Fees Date: Fact Hunt $15 per group of 25 (Includes one pencil per child) Focus Program $25 for group of 25 (for schools and scouts) Scavenger Hunt $15 for birthday party held Sunday through Friday (Includes small prize and pencil) Loan Kit Traveling Trunk $40 for 5 days (for schools only) Reservations via telephone. Facility Improvement Process KNid�nt�i " =s\ Facility2 1, Improvement Advisory/ Friends of GM creates Master Plan for FIP GM & Director develop timeline nmw&Director cannot agree, begin for operations & Technical Appeal improvement | Process i Phases Director presents FIP plan to Advisory & Friends fo recommendation! Friends Yes or No 1st phase of improvements begins Yes ft phase of improvements completed MJV makes corrections CM or designee presented FlPPlan designee approve / Does CM or construction? \`- ase? `` °. � `.` ` **r~ ,~ ~` pr#ven�entxnot\ MJV `\ \ made/ Y-- Questions to consider: • What constitutes Plan for F|P7 Does it need to include architectural plans? • Will a draft complete plan be required? • How will exhibits be effected? What will construction do to operations? • At what point during construction are reimbursements approved? Who confirms construction is satisfactory? • How often will MJV be reimbursed for investments? Corpus Christi Science & History Museum - Governance & Organizational Structure CONFIDENTIAL Accredidation isslon' Foundation Philanthropy City Council City Manager Museum Joint Ventures 06/05/12 Events Adaatinittrative Manager Lori .Bryant Development Director Patricia Drolet Exhibits Projec_ Cristina Chaves Exhibits. Project Mgr an Bequet Building & Grounds Custodian Ralph Sarmiento Building & Grounds Custodian Richard Esquivel Tour Guide sacira Prince Marina Maintenance Supervisor — Rudy Mircovich Carpenter & Joiner Trent Flanagan Education Maggie boratory :Ass nnie Randolph Sales Assistant Janie: Cleland Sales Assistant Laura Guererro incentives Sales Assistant Mary Herrera Debt Reduction evenue Focused City of Corpus Christi Purchased Insurance as of January 10, 2011 CONFIDENTIAL Coverage Insurance Cwrrier/ Expiration Date Coverage limits Deductible Types of Claims Premium Cost Airport Liability Pnmary layer Texas M� | un po League (TML) 11-4-2012 $25 Million per occurrence $5.U&8per oon $10'000 aggregate Liability claims occurnng at the Airport 28,193.00 AirpnrtLiobi|hY-ExcewnLayer ACE - Illinois Union Ins. Co./114-2O12 $50 Million per occurrence $25 Million primary limit Airport liability claims in excess of pnmary limit $ 36'185.50 General LiabUty for CCPD Substation Flint Hills agreement Texas Municipal League (TML)11-4-2012 $1.88O.O00per mz. /$2.008.000 annual aggregate $-0- Bodily injury or property damage claims $ 859.00 TB Clinic Van Liability Physical Damage Texas Municipal League (TML)11-4-2012 Liability $1.000,0U0per noc/ $25.8OOMed Pay /Physical Damage ACV 0—Liability/ $250' Physical Omg.per mm, Auto liability & physical damage claims involving TB Clinic Van 082.00 Auto Physical Damage -CC PD Special Services Leased Vehicles / SWS transfer trailers! scheduled Higher Valued units Texas Municipal League (TML)114-2U12 Physical Damage ACV Private pass. vehs. $250, per 0cc.! Transfer Trailers '$5O0per om:./Higher Valued units - $2,500 per ncc. Comprehensive and or collision damage to the leased units; scheduled SWS tranfer trailers! scheduled higher value units 113,938.08 Fleet Catastrophic Physical 0mg Texas Municipal League (TMU11-4- 012 $15.0OO.O0Oper occurrence $258,O0Oper mz. Catastrophic damage to fleet vehicles in excess of deductible such as hail hurricane fire explosion etc $ 12.080.08 Mobile Equipment Texas Municipal League (TML)11-4-2012$2.737.270 pnrmccunemm $2.5O0per occurrence CnmpmhennixeundormoUi collision1otb o damage o scheduled mobile equipmment 10,297.00 Animal Mortality Texas Municipal League (TML)11-4-2012$12.5UO per canine 0 Canine coverage for LaRoy and Kimbo CCPD $1,139.00 Excess Gas Utility Liability- General Liability & Auto Liability Texas Municipal League (TML)114-2O12 $10 Million per occurrence! annual aggregate $25O.0mUper nco Auto and general liability claims in excess of deductible »e,o*�.mn Employee Dishonesty! Crime Coverage Texas Municipal League (TML) 11-4-2012 $1 Mil per occ for employee theft, faithful performance, forgery or alteration, theft of money & securities inside premises; robbery or safe burglary inside premises; outside premises; computer fraud; funds transfer fraud; money orders counterfeit paper currency! $25.000 Credit Card Coverage $1U.00Odod.Per 000/ $250 ded.- credit card cov. Employee theft, faithful performance, forgery or alteration, theft of money & securities inside premises; robbery or safe burglary inside premises; outside premises; computer fraud; funds transfer fraud money orders counterfeit paper currency $ 9.134,00 Prepared by Evelyn 7/9/2012 Page 1 of 2 City of Corpus Christi Purchased Insurance as of January 10, 2011 Insurance Broke Contract Expi 'on Date: Texas Municipal League 11/4/2014 McGriff, Seibels & Williams 5/4/2015 Prepared by Evelyn 7/9/2012 Page 2 of 2 Coverage Insurance Carrier I Expiration Date Coverage limits Deductible Types of Claims Premium Cost Excess General Liability, Automobile Liability, Public Officials, Employment & Law Enforcement Liability / Excess Workers Compensation Star Insurance Co. 3-1-2013 $5 Mil each acc.per ooc/$10 Mil Aggregate I Workers Compensation Statutory $500,000 SIR for Liability other than WC / m35O^OQUSIR for VYC Monetary threshold of reserve that exceeds 50% of SIR or severe injuclaims such as fatality, spina cord, brain injury, 2nd m3rd degree bummm>58%cf body, amputation, vision impairment > 50%, nerve damage causing paralysis or loss of sensation in a limb, internal injuries, significant shattering or non - union of limb WC claims involving total disability 360.000.80 Primary Flood specific locations Selective Insurance Co Majority on 114'2011 varies per location $2U0Oper building/ $2000 per contents flood / rising waterstorm tidal surge damage to specified buildings various amounts Commercial Property / Wind Coverage -f Excess Flood Multiple camer! layers 5-4-2013 Property - $250 Million Blanket limit /Vmnd $100 Million Blanket Limit / Q3OMillion Flood limit / EDP $1O Million, Fine Arts $1 Million! unscehduled lona0oms$1Mi|0on 10% margin clause on locations excess of $3MiIlion $2MilIion Named Storm w/$25OKminimum/ $$Million max,$250K all other wind / $100,000 Excess Flood except flood zone A excess of maximum NF|P/$6O,OOO per occurrence - All other perils/ $10,000 EDP deductible Fire, lightning, smoke, damage caused by vehicles or aircracft not or civil commotion theft vandalism explosion,wind,excessUon� $ 2,717,910.52 Boiler & Machinery Travelers Ins. 5-4-2O13 $100 Million Property Damage Limit $2,500 property damage deductible per o� Mechanical equipment breakdown or failure of systems such as electrical HVAC etc. $ 19,113.00 Insurance Broke Contract Expi 'on Date: Texas Municipal League 11/4/2014 McGriff, Seibels & Williams 5/4/2015 Prepared by Evelyn 7/9/2012 Page 2 of 2 1 Property Statement oflraities ityofCorpusChrist Dept. Address Zip 1900 N Chaparral 78401 Museum Insured CC Musem of Science and History property Protection Class: Occupancy Museum 4 Const. Masonry Roof Steel/Cover 100% Values -3; 1.5 Total Insured , Value $22,750,000 $12,750,000 $10,000,000 Flood Zone B County: Nueces Flood (NFIP) Year Building $500,000 Contents $500,000 (sot) 85,000 Built 1965 2 1900 N Chaparral 78401 Museum Museum Mechanical Bldg Masonry Steel/Cover 1,5 $347,400 $97,400 $250,000 B $95,000 $210,000 1,200 1967 Facility Rental Policy - Corpus Christi Museum of Science and History Advisory Committee Adoption: January 7, 2010 City Manager Approval: Date: z/ fi/ el R. Escobar Museum/Plaza Facility rental is possible during non-public hours, for purposes that are consistent with the Museum's purpose and policies. Museum Room rental Is available during public hours and evening hours. Prices are applicable to a maximum of 4 hours of event time. The Museum may not be used as a forum for promotion, commercial sales, religious services, fund raising activities, or political gatherings. The Museum reserves the right to refuse rental of the facility for any event Inconsistent with the Museum's purpose and policies. Rates - Museum Seated Area Capacity Rental Fee WICultural Gpllery AT lighlitiffit*Mita Entire Museum (400) $ 2,200 $ 2,700 0110, OMMEMS North wing (150) 1,000 1,500 $11: ;;V:M-StMtM South wing (100) 700 Center wing ( 80) 500 Cultural Gallery for Wedding 500 Capacity of the Museum Is 2,500 people. Seating capacity varies with type of tables used and set-up area. Cost to remove exhibits from Children's Wharf $200 and from Cultural Gallery $280. Rates - Santa Maria Plaza Area Rental Fee W/Cultural Gallery 'AilW urfy. Pe�n North wing and Ships Plaza $ 1,500 $ 2,000 (Capacity: seated 500/outside, 150/inside) Ships Plaza $ 500 Ship Tours (per hour) 100 Ship tours are available as part of Museum rental. Additional Rental information Prices are apphcable to a maximum of 4 hours of event time gib_ jj_ litrismv ira woorin pmwojxgyik.msiwofgttmtttvgfm Wedding rehearsal 1 hour, wedding day 2 hours. Set-up may begin 1 hour before Museum/Plaza closes at 5 p.m. All equipment and supplies brought in for an event must be removed by 8 a.m. the following morning. Museum will provide: 10 - 8 ft. tables and 100 chairs (Inside use ix_ily) Plaza rental will Include: 14 tables and 32 benches. Renter will provide: Additional electronic equipment (lapel microphone, overhead projector, slide projector, and TVNCR) and any additional tables and chairs. A 10% catering fee Is charged to food and beverage service providers. Corpus Christi Museum of Science and History 1900 N. Chaparral, Carpus Christi, TX 78401 (361) 826-4664, Fax (361) 884-7392, e-mail bonnielacetexas.com Room Rental Policy Museum Facility rental is possible during non-public hours, for purposes that are consistent with Museum's purpose and policies. Museum Room rental is available during public hours and evening hours. The Museum may not be used as a forum for promotion, commercial sales, religious services, fund raising activities, or political gatherings. The Museum reserves the right to refuse rental of the facility for any event inconsistent with the Museum's purpose and policies. Area Room Rental Seating Can el Rate Watergarden Room 50-175 Lecture Hall 50-75 Conference Room 16-25 Dome Room 70 $150 125 75 200 Rooms may be used for meetings, and luncheons. receptions ask to see the Facility Rental Policy. Hrs. Available Meetings after 5 p.m. 8am-5pm $275 8am-5pm 250 8am-5pm 175 3 hours 500 For evening functions dinner or The Museum will provide: Tables and chairs for room set-up, screen and projector, connectors for computer presentations, podium and microphone. Museum Gift Shop will provide coffee and soft drinks for an additional fee. Corpus Christi Museum of Science and History Piano Recital Policy and Fee Schedule Advisory Committee Adoption: December 4, 2003 p Approval: Fee Schedule: ty Manager Date: iloy $100 for 2 hour use of the Front Porch area, Tuesday evenings, September — May $40 food and beverage set-up and custodial services The piano is tuned annually at Museum expense. Programs are provided by the Recital sponsor. "Doc" McGregor Photograph Collection Policy Advisory Committee Adoption: January 7, 2010 gel R. Escobar Fiber Base & Archival Mat Resin Coated Paper (Matte or Glossy Finish) 5 x 7 25.00 8 x 10.. ..... 55.00 11 x 1465.00 16 x 20 . . .. 80.00 20 x 24...........110.00 5 x 7........ ..... 15.00 8 x 10...........20.00 11 x 14.........30.00 16 x 20........50.00 20 x 24, .... _75.00 24 x 36........200.00 Sepia Tone Prints Flat rate per image: $10 Digital Images 100 dpi $10 300 dpi$25 Website use: Non-Profit $50 in addition to cost of picture printing Commercial $100 in addition to cost of picture printing Copies Archival Materials: $0.10 each McGregor Scanned Copy: $1.00 each Publication Use Text use of image in addition to cost of picture printing: Non-Profit $30 Commercial $50 Cover use of iiii e in addition to cost of picture printing: Non-Profit $50 Commercial $100 Re-use Fee for the use of same image: 34 of the original usage fee Fee Policies: *Fees must be paid in advance *No refunds or exchanges *All sales are final 3. Energy Savings 3.1 Guarantee Overview a. Philosophy: McKinstry is prepared to guarantee any portion of project over which it has direct control. b. This Project: For this project, McKinstry is prepared to guarantee the performance of the installed initiatives to reduce energy consumption. The target energy reductions for the Initiatives that will be implemented can be found in Table 11 of this section, Based upon the stipulated conditions as enumerated by the City of Corpus Christi, TX personnel and the utility rates as described below, the associated utility cost savings are also shown In Table 3.1. c. On-going Services: On-going Performance Assurance bopumna|forUncgtymrCo Chrsti, TX. The cost of On-going Performance Assurance in years after the first year is at the discretion of the city of Corpus Christi, TX. McKinstry is prepared to continue the guarantee as long as the clty of Corpus Christi, TX continues the on- going ocm|cesusgescribedhenein.whmnmoc|tyof Corpus Chrlstl, TX chooses to cancel the ongolng servlces, the guarantee will also be terminated at the same point In time. 3.2 FIM Specific Performance Assurance Methodology m. Guarantees: Table 3.1 - 'Energy Savings Guarantee Summary" provides the specific energy consumption savings for each facility mprovement measure and the guarantee that McKinstry will provlde associated with that measure. Savings calculations are based upon both baseline operating characteristics and proposed operation criteria: I. Baseline: "Baseline" refe to tIie existing characteristics y cos savings. The baseline operating characteristics, Including system performance and operational expenditures, which were used for this project are provided in Table 3.1. In general, all parties acknowledge the baseline associated with any specific measure has been derived from the following sources: 1) Actual operating information gathered through field observation, measurement, micro-data loggers, and owner's operating log books, 2) Owner provided information concernlng stipulated factors such as run times, bum hours, occupancy, or operational expenditures. 3) In some instances, a modified baseline may have been developed to address areas whereby pre- retrofit conditions do not reflect a system that Is operating per current code or what the City of Corpus Chrlstl, TX may deem as normal operation. |i Proposed: The proposed operating criteria, including system performance and operational expenditures, which were used for savings calculations are provided in Table 3.1. Systems must be operated per the proposed criteria to ensure energy cost savings are realized. McKinstry will provide the Initial start-up, commissioning, and programming of the system to ensure that the systems operate per the proposed operating criteria. the City of Corpus Christi, TX acknowledges Its responsibility to ensure that these criteria are maintained and associated energy savings are realized. Energy Savings Guarantees are predicated on the City of Corpus Christi, TX maintaining its responsibilities as provided below in "On-Going Owner Responsibilities." b. Performance Assurance (PA): Table 3.2 - 'Performance Assurance PIan OuU|ne^provides the specific on-going reporting tasks that McKinstry will perform to verify that the performing as specified. The Intent of the verification Is to measure and verify leading indicators on which the energy savings are based, Once these leading indicators are measured and are verified to be in accordance with the proposed criteria, the savings due to the performance of the equipment or measure shall be deemed as met. McKinstry has proposed measurement of these indicators. The site specific Performance Assurance Program encompasses the following elements: 1. Initial Commissioning Report: McKinstry will provide an Initial Commissioning Report during the one- Energy Service Proposal 1 Confidential and Proprietary 3. Energy Cost Savings Guarantee cont month period three months after the Notice of Commencement of Energy Savings, The scope of this report consists of the tasks outlined under the "Post-Retrofit" stage of Table 3.2. U. First Year 0n-gm|mnReporting: For this project, McK|osuY proposes reporting of th first year PA tasks as provided in Table 3.2 on a one-time basis, The scope of thls report consists of the tasks outlined under the "Annual Task" stage of Table 3.2. The first report shall be provided no later than one year after last date of Notice of Commencement of Energy Savings. However, if additional phases of work are involved, a single PA Report may be provided at regular interval(s) that reports across all relevant phases of work. 0. Post Year zJ]n-wino Reporting: This proposal includes a 10-Year Guarantee. This guarantee is only valid if the City Performance Assurance servlces for years 2 tiirough 10. Cost of those services Is $30.000 for year 2, escalated at 2.50/0 per year for each year thereafter. 3.3 Whole Facility (Option C) _ M&V Plan Details of the FIMs to be ir,stalled and thelr proposed proposed method of savings verification, specifically those FIMs proposed for the Airport, are detalled In Table 3.2. This section covers FIMs proposed to be verified uslng Optlon C. McKinstry proposes to install and implement extensive efficiency measures Including: lighting improvements, computer power marlagement, vending power management, HVAC controls and ngm'oomm|ss|on|uQ, and replacement of HVAC equipment, These measures will be Implemented at the foliowing buildings: • American Bank Center ° Health Department Arena and Convention Center ° Selena Auditorium • Central Library • Municipal Courts and Police Department • City Hall • Museum of Science and History OPTION C: WHOLE FACILITY ANALYSIS Because the proposed FIMs are expected to reduce building utility consumption by more than zoe, McKinstry will determine energy savings described in this section by following International Performance Measurement and Verification Protocol (IPMVP) Option C Whole Facility Analysis protocol to demonstrate the overall reduction in energy usage. Energy savings will be measured by comparing by comparing the guarantee perlod's total energy corisumption and demand to the total energy consumption and demand for the same area in the base year perlod. Base year ener y and demand will be adjusted for differences in weather, facility operation, and facility modifications. This method will provide an estimate of how much energy would have been used In the guarantee period if the FIMs had not been Implemented. Speclfic savings will be determined in the following manner: • Energy Saved — the difference between the adjusted base year consumption and the guarantee period consumption. ° Demand Saved — the difference between the adjusted base year demand and the guarantee period demand. • Energy Cost Savings — the difference between the cos of the base year consurnption and demand and the guarantee period consumption and demand. This process will be followed for each fuel type Involved In the guarantee In support of the Whole Faclllty Analysis, the M&V proces may include FIM speclflc review and analysis. This closer look Into individual systems Is often referred to as "retrofit isolation" and relies on the physical assessment of equlpment change-outs to ensure that the Installation is to specification. The potential to generate savings is Energy Service Proposal 1 Confidentlal and Proprietary 3. Energy ` ost Savings av"ngs GNa antee cont. verified through observations, and spot/short-term/continuous metering of energy or proven proxies of energy use. Following the collection of the measure specific data, the data will then be incorporated, if appropriate, into the computer simulation to account for energy impacts resulting from deviation from the project's performance ENERGY BASELINE DEVELOPMENT Baseline Definition Tile base year Is the period of time, as agreed agreed to iri this document, which establishes the pre-retrofit conditions used as the point of refer nce for determining guaranteed savings, The guarantee period Is any one or more billing periods during the term of the guarantee during which guaranteed savings are measured. The baseline is that set of parameters that descrlbes both the energy consumed in the base year and the conditions that caused that consumption to occur. This set of parameters includes utility pdo facility information, weather data and other information as may be necess to describe the base year cond|tians. In addition, the baseline includes certain mathematical values calculated by a model that is used to correlate the base year energy consumption with the factors that caused that consumption. The baseline to be used for this project Is fully defined in Section 5 - Exhibit 2 - Utility Data Assessment (UoA). Customer agrees to accept rnodifications to this baseline that are necessary to account for changes in the facilities and their use which many have occurred prior to the execution of this agreement but come to the attention of McKinstry after the execution of thls agreement. Determination of Adjusted Baseline LJtiIity base year consumption will be adjusted to estimate what the current guarantee period consumption wmuld have been had no FIMs been Implemented. This is accomplished by adjustlng for these factors: • Changes in the riumber of days between the base year and guarantee year billing periods • Changes in weather between the base year and guarantee year billing periods • Changes in facility use between the base year and guarantee year billing periods ° Modifications to the facility between the base year and guarantee year perlods Adjusted base year consumptiori Is calculated as foliows for each u type: 0~Co*(T1-T~J+CH* HOD, +Cc*CDc,+M/ Or, Adjusted Base Year Consumption = Weather Independent Consumption + Weather Dependent Consumption + Use and Modiflcation Adjustments Where: Q = adjusted base year consumption Cu~nconstantnenresendngunVsofcnnsumpdnnpenbi|Uogpe,nddoymscakulatedbymodel T1 = ending date of current bllPIng perlod Ti.1= ending date of previous billing period CH = a constant representing units of consumption per heating degree day as calculated by model HDD, = heating degree days in the current billing period Cc = a constant representing units of consumption per cooling degree day as calculated by model CDo/= cooling degree days iri the current bIIIing period MI = other adjustments for the current billing period (MI is described In detail below). Energy Service Proposal 1 Confidential and Proprietary 3 Energy Cost Savings Guarantee Cont. Adjusted base year demand is calculated with a slightly different formula as follows: D = DD * (T; - T_1) + DH * (HDD1/ (T1 - Ti.t) ) + Dc * (CDD1 / (T1 TI.1) ) + M1, Or, Adjusted Base Year Demand = Weather Independent Demand Modification Adjustments eather Dependent Demand + Use and Where: D = adjusted base year demand DD = a constant representing units of demand per billing period day as calculated by model DH = a constant representing units of demand per heating degree day as calculated by model Dc = a constant representing units of demand per cooling degree day as calculated by model Weather Independent Consumption This component of consumption can be regarded as base - load, or non -HVAC consumption. As utility meters are not always read on the same day of the month, the number of days In a meter's billing period frequently varies. The term, CD * (T, - T, -1), in the above equation is used to account for this difference, where (T - gives the number of days in the guarantee year billing period. Thus, Weather Independent Consumption Is the base load consumption per day times the number of days in the guarantee year billing period. The approach is identical for demand, except that the term DD is substituted for CD. Weather Dependent Consumption Change in weather between the base year and guarantee year periods is accounted for with the terms, CH * HDDi + CC * CDDi. Weather Dependent Consumption Is consumption per degree -day times the number of degree -days in the guarantee year billing period. A cooling degree-day is the difference between the average daily temperature and the balance point temperature (AvgTemp - BalanceTemp). A heating degree -day Is the difference between the balance point temperature and the average daily temperature (BalanceTemp - AvgTemp). Degree -days are always greater than or equal to zero. If the degree -day calculation yields a negative number, the period Is considered to have zero degree -days of that type. The balance point temperature Is different for each building and for each fuel type and will be defined in Section 1.5. Demand Is treated similarly. The exception being that "total degree -days per month " is substituted for "degree - days per day." This provides a measure of average daily weather Intensity. Other non -route Adjustments Additional non - routine adjustments to the base year may be made to compensate for modifications and additions to a facility and /or changes in how a facility is used. A list of known Causes for Adjustments Is shown in Section 1.6 along with means to determine the magnitude of these adjustments. The total adjustment for any given period will be determined with this equation: M;= Adj1+ Adj2 +...Adj„ Where Adji, Adj2 and Adj, are all of the adjustments determined to be necessary for the guarantee period. The sign of the adjustment will be positive when the change will cause an increase In utility and the sign of the adjustment will be negative when the change will cause a decrease in utility. Upon request, McKinstry will provide an explanation of the derivation of these adjustments to Customer. If additional changes occur, other than those listed In the M&V Plan, McKinstry will document to Customer how adjustments will be determined for said changes. Any such adjustment will be added to the term M, in the equation above. Energy Services Proposal Confidential and Proprietary 3 Energy Cost Savings Guarantee cont. ENERGY SAVINGS CALCULATION METHODOLOGY Determination of Energy Units saved Energy and demand units saved will be determined by the following equation: E =EB -EG Where: E = Energy (or demand) Units Saved EB = Adjusted Base Year Consumption (or Demand) EG = Guarantee Period Consumption (or Demand) Determination of Energy Dollars Saved For the purpose of this contract's guarantee, energy dollars saved will be determined as follows: $ = ($B- SG) +$5 +$0 +$M Where: $ = Energy Dollars Saved $B = Cost of Adjusted Base Year Energy, for All Fuel Types $G = Cost of Guarantee Period Energy, for All Fuel Types $s = Stipulated Energy Savings $o = Other Energy Savings $M = Maintenance /Other Savings The cost of energy In any period will be determined by applying the energy rates, as defined in table 3.3 or the actual energy rates during the period, at the discretion of McKinstry, to the energy used in a given period for each fuel type. BASELINE & SUPPORTING INFORMATION Meter Tuning Contract The purpose of meter tuning is to establish a relationship between the weather, or other independent variables, and consumption and demand measured by a particular meter. Tuning consists of identifying relationships between historic utility performance and the relevant Independent variables. The end result is a set of coefficients, which will be used In modeling the energy use of a facility to calculate the energy savings or penalty associated with weather normalizing the baseline energy use. During the project implementation period, McKinstry will select the 12 -month baseline period (typically the same period used as the base line for the energy savings guarantee) for each guaranteed meter and will determine the meter tuning coefficients. These coefficients will be included as a part of this contract and will be submitted to Customer for review prior to the start of the guarantee period. The meter tuning effects will be calculated using Metrix utility simulation software. Thls software package has been accepted as meeting the requirements of the IPMVP. Meter List Energy Services Proposal Confidential and Proprietary 3. Energy Cost Savings Guarantee cont The following meters will be used to measure actual energy consumption for both the base year and guarantee periods, Building 'Sep ved AME Meter Number 10032789439293451 Account. Number 4995056150 Utility Cu Rate Units AEP/ Direct Sec> 10 Energy kW/ STAP - 2009 kWh, kW AME 10032789490999491 4995056173 AEP/ Direct Energy Sec> 10 kW/ STAP - 2009 kWh, kW AME GA58094 City of Corpus Christi City Gas Therms AME 335494 City of Corpus Christi City Gas Therms AME GA61012R City of Corpus Christi City Gas Therms CEN 10032789435610861 4995056160 AEP /Dlrect Energy Sec> 10 kW/ STAP - 2009 kWh, kW CEN GT59346R City of Corpus Christi City Gas Therms CIT CIT 10032789494229351 8514656 4995056154 AEP /Direct Energy City of Corpus Christi Sec> 10 kW/ STAP - 2009 City Gas kWh, kW Therms CIT GT61002 City of Corpus Christi City Gas Therms HEA 10032789412459381 4995056159 AEP /Direct Energy Sec> 10 kW/ STAP - 2009 kWh, kW HEA TBD City of Corpus Christi City Gas Therms MUN 10032789410525840 4995056169 AEP /Direct Energy Sec> 10 kW/ STAP - 2009 kWh, kW MUN GA76764 City of Corpus Christi City Gas Therms MUS MUS 10032789422995252 10032789464587390 4995056173 4995056163 AEP /Direct Energy AEP /Direct Energy Sec> 10 kW/ STAP - 2009 City Gas kWh, kW kWh, kW MUS 57700 City of Corpus Ch risti City Gas Therms Energy Services Proposal 1 onfidential and Proprietary -� Energy Cost Savings ������ y������ ��. �-/ /�~i �4 � v~�����L ���um/�V N��~� �~���X�.C3i|����~ cont. � Building List The following table lists the buildings that were served by guarantee meters during the base year period. Bldg 10 AME Building Name Ara (h/} Comments�� American Bank Center 486,342 CEN Central Library CIT City Hall HEA Health Department 78,400 152,361 46,876 MUN Municipal Courts & Police 102,580 MUS Museum of Science & Natural History 85,000 Weather Data Source Data for weather compensation adjustments will be Daily Hlgh-Low Temperatures obtained frorri the National Weather Servlce Station Christi, TX (CRP). In the event the speclfied weather station Is deactivated, weather data will be collected from the nearest weather station with suitable observations. If the data source becomes unavailable or a superior source is identified, McKlnstry may select an alternative source with Customer's approval. NON-ROUTINE ADJUSTMENTS Causes For Adjustment Cause Addition of New Building or Renovation/Addition on Existing Building - with Independent Utility and *vxc Service Action Responsibility 1, None requ|md Should have no impact uotmcked meters 1. None Change Addition of Facllltles or service on Existing Utility and HVAC Service 2. Notify McKinstry of planned changes 3. McKinstry will revlew plans arid will determine if change is likely to impact energy use above thresholds 4. If change is expected exceed any threshold, all Incoming utilities and HVAC service will be sub-metered 5. If the chan impact 5 expected to be below threshold, then the change In energy use will be estimated using industry accepted methods 2. Customer 3, McKinstry 4. Customer 5. McKinstry Energy Services Proposal I onfidential and Proprietary 3. Energy Cost Savings �� cont. ��| |��| �4 � ^~�v~/.�� ����VN/ .���a Guarantee �~��| |L. __ Cause �� Customer Initiated � Ac ion Responsibility� 6. If less than 5% of this contract's annual guaranteed energy savings, no adjustment will be made to the savings measured under this contract 7. To measure aomPn,�onuwm to mac* agreement from MxKnxty, the resul m CI-FlM will be removed from this contract's savings 8. In no event will the original M&V plan's current year measured savings be reduced below the imrnediately preceding year's savings due ,ncz-��m 6. N/A 7. Customer 8. N/A Missing Bills 9. Customer m utility information directly from the utility or Customer will send complete and accurate copies of utility invoices for meters included in thls contract to mcxinstrywi0hin 10 days of receipt. 10. IrmcNnstry does not receive Invoices within 60 days of end «f service Pedod,McK|nyt'Yw|||est|ma'eoa«|n8s based onguuenteod savings ur previously achieved savings utMcNnstrydiscretion. 11. If McKlristry receives utility data subsequent to above action, McKinstry will incorporate utllity data into savings arialysls. If such data produces savings resulis greater than item 10, the greater amount will be used to 9. Customer 10. zU McKinstry 11. McNnstry Other Causes 12. Other causes for adjustment may occur due to changes i»c«�ambaycx»eo»»Wt|»ns and wiUbm|»«vauoa»e» � and a will beca|cu|amd using industry ucvevteumangords. 12. McKinstry ' Threshold Limits Area: 1% of base year area as described in Building List • Electricity: 1% of highest annual peak clemand resulting from the Meter Tunlrig Contract • Natural Gas: 1% of installed base year gas-heating capacity • Other Fuel: 1% of installed base year maximum capacity • Air Conditioning: z% of installed base year alr-coriditionlng capacity Calendar & Schedules Schedule and occupancy are docurnented in Table 3.4 Standards of Service and Comfort Customer agrees to operate the condltloned spaces in the facilities listed in the Building List within the temperatur ranges as detailed in Section 3.4. McKinstry reserves the right to adjust the baseline for operating conditions outside the range speclfied in this section. Other Key Baseline Informatlon Energy Services Proposal I Confidential and Proprletary 3. Energy Cost Savings Guarantee cont. The following are key baseline conditions and calculation assumptions. Significant deviation from any or all of these conditions constitutes a cause for adjustment. In the event a cause for adjustment occurs, McKinstry will use an appropriate means to estimate the effect of the change and add or subtract the adjustment for the current billing period. All calculations will be made available to the Customer upon request. Guaranteed savings assume that no significant increase or decrease in quantity or capacity will occur in installed equipment and plug loads such as fans, pumps, lighting, copiers, computers, printers, kitchen equipment, etc. McKinstry reserves the right to adjust for changes In quantity and/or capacity of any of these Items. Customer agrees to provide McKinstry access to Customer's premises and/or records for purposes of determining the occurrence and/or magnitude of any such changes. 3.4 Utility Rates a. Utility Rate: For the purpose of calculating savings, the utility rates used will be the utility rates as paid by the City of Corpus Christi, TX to the utility company during the pertinent period, adjusted for any rate schedule changes made by the utility company, except that the utility rate used for calculation will never go below the Floor Rate, or above the Ceiling Rate, as described below. In the event that a building has multiple meters on different rate schedules, the per-unit cost of the utility will be the average of all the rate schedules in effect at that facility. Base Utility Rate: Refer to table 3.3 for the Base Utility Rates (including sales tax). b. Floor Utility Rate: For the purpose of calculation of savings, the utility rate shall never drop below the base utility rates described above. This shall be known as the Floor Utility Rate. c. Ceiling Utility Rate: For the purpose of calculation of savings, the utility rate shall never ceed 1.5 times the base utility rate described above. This shall be known as the Ceiling Utility Rate. d. Rate Schedule Changes: When the utility company makes a change to the rate schedule, the new rate will be used for calculating savings realized during a given period. If a rate schedule change occurs partway through a period, an aggregate rate comprised of a weighted average between the old and the new rate will be used. The weighting will be based upon the portion of the period that each rate applied. 3.5 Standards of Comfort The following section provides the standards of comfort, which the City of Corpus Christi, TX must maintain to ensure the comfort of the occupants upon which all energy calculations were based. HVAC COMFORT Heating, ventilating and air conditioning (HVAC) systems provided by McKinstry will provide comfort and indoor air quality in accordance with the Standards of Comfort below. This standard will pertain only to buildings and areas of buildings in which McKinstry is Installing HVAC equipment that has direct control over space comfort conditions. HVAC comfort conditions cannot be guaranteed when operable windows or doors are open. Indoor Conditions: Occupied: Winter Heating Set Point - 68 degrees F Summer Cooling Set Point - 74 degrees F (where mechanical cooling systems are employed) Unoccupied: Minimum - 55 degrees F Maximum - 85 degrees F (where mechanical cooling systems are employed) Energy Services Proposal I Confidential and Proprietary 3. F-��������� Cost Savings Guarantee �~����� ��, �-� |�~| �4 � v_�v^�.�� ����wU| |��_� »������/ | |��~�~ cont. Unoccupied for Library arid Museum: M/nimum - Ssuen,ees F Maximum - 75 degrees F Minimum outslde air per occupant: zn accordance with ASHRAsstandards LIGHTING Illumination Levels Verification: Illumination levels shall be as recommended by the !Iluminatlng Engineers Society of North America (IESNA). Design calculations shall be made for each space, using an 80% lamp depreciation/maintenance factor, Iltumination Levels Design: The lighting and Illumination levels for lighting systems provided by the McKinstry Co. will meet or exceed current recommended practices by the Illuminating Engineering Society of North America for illumination levels for the various tasks that are conducted throughout the City of Corpus Christl, TX. 3.6 On-Going Owner Responsibilities The City of Corpus Christi, TX shall provide the following services as part of this energy services project. In the event tliat these services are not provlded, energy savings and assoclated guarantees will be modlrled to reflect the associated impact. 1) Maintain all equipment per manufacturer's recommendations and proposed maintenance schedule. 2) Maintain all sequence of operations and performance criteria related to installed systems as proposed and designed. 3) Provide other FIM specific on-going responsibilities as provided in Table 3.2 - 'Performance Assurance Plan Outline." 4) Provide McKinstry access to Energy Management and Control Systems for the purpose of collecting and logging data over time as requlred for perforniance verificatlon. 5) The City of Corpus Christi, TX shall notify McKinstry in writing with regards to any changes or alterations to buildings that will affect energy usage. This notification must be provided within two weeks of the change. This includes occupancy or use changes, computer Ioad or other load changes, scheduling changes, and sequence of operations changes. 3.7 Non-performance In the event the equlpment performance h not met, McKinstry accepts responsibility for additional electricity or gas used by the equipment as a result of the reduced performance. McKinstry may, at its preference, execute any of the following options: a. Repair or replace equlpment as requlred to meet required performance. b. Make payments for the extra energy consumption to the City of Corpus Christi, TX. In the event that McKinstry chooses the payment option, wcK|nstry reserves the right to select either an annual payment for the duration of the finance term or a one-time Iump-sum payment af the same aniount. In elther case, the payment will be calculated based upon the quantity of additlonal electricity used and the Base Utility Rate as described above. 3.8 Change of Use Energy Services Proposal 1 Confidential and Proprietary 3. Energy Cost Savings Guarantee cont. In the event that the City of Corpus Christi, TX chooses to make changes to the facility that require set point adjustments, longer operating hours, or continuous equipment operation, the City of Corpus Christi, TX agrees that: a. Savings deemed as met described above will continue to be deemed as met, b. Additional cost of extended equipment operation Is a cost of the change, not due to a failure of McKlnstry or its equipment. c. McKlnstry shall not be responsible for any increase In energy, maintenance, or any other costs incurred as a result of the extended equipment operation. d. McKinstry, at its option, may make a baseline energy use adjustment to account for a change-of-use at any facility. Energy Services Proposal 1 Confidential and Proprietary Table 3.1 - Energy Savings Summary AIR•09,01 Lighting Improvements City of Corpus Christi, TX ESPC Final 9/16/2011 AIR - Airport 100% 622.0 55,712 447,869 $37,571 -1,284 -$886 $42,397 AIR-16.01 Computer Power Management AIR - Airport 90% 0.0 $0 6,998 $587 0 ;0 $587 AIR-26.01 High Efficiency Hand Dryers AME-04.01 HVAC Controls Improvements (Selena Auditorium) AIR - Airport AME - American Bank Center 90% 90% 0,0 0.0 50 50 -1,805 320,513 -$151 526,884 90 $0 .5151 $26,884 AME-09,01 Lighting Improvements (Arena) A14E - American Bank Center 100% 573.0 $4,929 371,632 $31,172 O $0 $36,100 AME-09,01 Lighting Improvements (Convention Center) AME - American Bank Center 100.1. 1,711.0 $14,717 869,630 $72,943 0 $0 587,660 AME-09.01 Lighting Improvements (Selena Auditorium) AME • American Bank Center 100% 100.0 5060 82,714 $6,938 O $0 $7,798 AME-16.01 Computer Power Management AME American Bank Center 90°Ai 0.0 so 7,747 5650 O $0 0650 AME-16.02 Vending Power Management AME-25.01 Retro- Commissioning (Convention Center & Arena) AME • American Bank Center APSE - American Bank Center 90% 90% 0.0 0.0 50 00 8,492 435,984 $712 $36,569 O 50 0712 $36,569 CEN-04.01 HVAC Controls Improvements CEN - Central Library 95% 0.0 $0 232,188 $19,474 10,664 57,358 $26,833 CEN-09.01 Lighting improvements CEN - Central Library 100% 486.0 $4,180 199,429 $16,727 -561 -$387 $20,520 CEN-16,01 Computer Power Management CEN - Central Library 90% 0.0 00 23,126 $1,940 O $0 $1,940 CEN-16.02 Vending Power Management CEN Central Library 90% 0,0 $0 3,425 $287 0 50 $287 CIT•02.01 Primary Chillers & Cooling Tower Improvements CIT • Cfty Hat 90% -1,830.5 16,655 '784,707 464,193 107,090 $73,892 -$6,956 CIT-02.02 IT Chiller improvements CT - City Hall 90% 0.0 50 43,592 $3,659 $0 53,659 CIT-04.01 HVAC Controls Improvements CIT - City Hall 90% 0.0 $0 109,301 59,175 10,769 57,431 $16,606 C1T-09.01 Lighting Improvements CIT - City Hall 100% 1,192.0 $10,845 593,780 549,845 -1,749 -51,207 $59,483 CIT-16.01 Computer Power Management CIT - City Hall 90% 0.0 50 132,070 $11,087 $0 $11,087 CIT-16.02 Vending Power Management CIT - City Hall 90% 0.0 $0 14,948 $1,255 0 $0 $1,255 CIT-26.01 High Efficiency Hand Dryers HEA' 09.01 Lighting Improvements CIT - City Hall HEA - Health Department 90% 100% 0.0 627.0 $0 $5,393 -2,048 202,055 -$172 $16,948 50 -1,700 -51,173 -5172 021,168 HEA-16.01 Computer Power Management HEA-16.02 Vending Power Management HEA - Health Department HEA • Health Department 90% 90% 0.0 0.0 50 $0 24,429 5,864 $2,049 5492 50 0 $0 $2,049 $492 HEA-25,01 Commissioning HEA - Health Department 90% 0.0 50 179,899 $15,090 $0 $15,090 MUN•04,01 HVAC Equipment & Controls Improvements MUN - Municipal Courts and Police 90% 0.0 $0 381,092 531,965 0 $0 531,965 MUN-09.01 Lighting Improvements MUN Municipal Courts and Police 100% 775.0 $6,666 440,953 $36,986 0 50 $43,652 MUN-16.01 Computer Power Management MUN Municipal Courts and Police 90% 0.0 50 110,171 59,241 $0 59,241 Sheet 1 of 2 nstry Table 3.1 - Energy Savings Summary City of Corpus Christi, TX ESPC Final 9/16/2011 MUS-04.01 HVAC Controls Improvements MUS-09.01 Lighting Improvements MUS-16,01 Computer Power Management MUS - Museum of Science and History MUS - Museum of Science and History MUS - Museum of Science and History 90% 100% 90% Totals 0.0 1,011.0 0.0 kV1 (E.) se $0 123,620 207,788 2,387 4,813,132 k5Vr 810,369 917,429 $200 $403,727 111=1 $36,881 WLA 80 8110,280 $200 The savings shown in this table are less than the calculated savings unless a guarantee multiplier of 100% H shown. t. The guarantee is based on Key Performance Indicators shown In Table 3.2. Refer to Section 3 of the ESP for the method of converting Key Performance Indicators to dollars during the M&V period. The guarantee is based on the aggregate savings for all FIMs, not on individual FIM savings, Confidential and Proprietary Sheet 2 of 2 r p7lYerp�py stry Table 3.2 - M&V Plan Outline City of Corpus Christi, TX ESPC Final 9/16/x011 AIR -09.01 Ugh Improvements Fixture. Types and Quantity'.. Fixture Input Power Re Refer to. DES ES Refer to DES None ANSI Values Logging Collect Light Levels i e EPACT Requirements Spot Measurements Instantanenus Spot Input Power Measurements Log But gyps None f stry W any tolighting stem. Maintain Equipment per MUGnstry and Manufacturer recommendations. Notify McKinsey of any changes in operating AIR -16.01 Computer Power Management AIR - Airport Quantity of Computer peter lop ut Power Teo Same as Baseline Quantity of computers Customer Interview crenced ENERGY STAR Customer Interview Power Management Local power management Networklevel power Settings only management Power Management Settings None Canfirm Network Power Management Solution Installed Properly None None None None None None Notify Mckfnstry of any significant changes to computer quantities None management strategic per McKinstry reoornmendagons AIR -2&A1 High Widen Hand Dryers CIT -26.01 High Efficiency Hand Dryers Ef Ciency i:3W7 Power Units Paper Towel Availability Paper Towels Available No paper towels available Baseline annual paper In selected restroores towel costs CIT - CIty Hall Usage based on occupancy A 1. Hand pryer Power Input No Existing Hand Dryers High Efficiency 1.3W Input Power Units Paper Towel Availability Paper Towels.Availe Hand Dryer Use +o paper towels.:avaula in selected restroom Customer Intern Verify paper towels available in selected restmoms None None nairIam new:ego pment per;rnanufacturer end McKfnstry mmendatlons. Ensure. paper 'bawds are notprovided in selected ;restrooms MCKlnst y of any significant changes an ecupancy or use of the facility .. None Detailed Audit Provide as -built documentation per towels not liable ie selected Norm None Usage based on occupancy Same en Basalis data provided by customer Occupancy Customer Interviews None None None Maintain new equipment per manufacturer and Mcicnstry recommendations. Ensure paper tomes are not: provided in elected Y@stmams Notify MCKfnstry of any significant changes in occupancy or use of the Confidential and Proprietary Sheet 1 of 1 faUlity Pro Tact LScaertario Date Table 3.3 - Base Utility Rates City of Corpus Christi, TX ESPC Final 9/16/2011 Building_Name Utility Provider Rate Name — Utility_Type Dollars_Per Unit Units Published_Date_Effective AIR - Airport American Electric Power (AEP) AIR - Primary Service Electricity Demand $9.183174 kW 12/30/2009 AIR - Airport City of Corpus Christi (TX) Enterprise Gas Rate Natural Gas $0.690000 Therms 8/1/2009 AIR - Airport Direct Energy AIR - STAP 2009 Electricity $0.083888 kWh 12/30/2009 AME - American Bank Center American Electric Power (AEP) AME - Sec > 10 kW Electricity Demand $8.601236 kW 12/30/2009 AME - American Bank Center Direct Energy AME - STAP 2009 Electricity $0.083878 kWh 12/30/2009, CEN - Central Library American Electric Power (AEP) CEN - Sec > 10 kW Electricity Demand $8.601236 kW 12/30/2009 CEN - Central Library City of Corpus Christi (TX) City Gas Rate Natural Gas $0.690000 Themis 8/1/2009 CEN - Central Library Direct Energy CEN - STAP 2009 Electricity $0.083873 kWh 12/30/2009 CIT - City Hall American Electric Power (AEP) CIT - Sec > 10 kW Electricity Demand $9.097998 kW 12/30/2009 CIT - City Hall City of Corpus Christi (TX) City Gas Rate Natural Gas $0.690000 Therms 8/1/2009 CIT - City Hall Direct Energy CIT - STAP 2009 Electricity $0.083945 kWh 12/30/2009 HEA - Health Department American Electric Power (AEP) HEA - Sec > 10 kW Electricity Demand $8.601236 kW 12/30/2009 HEA - Health Department City of Corpus Christi (TX) City Gas Rate Natural Gas $0.690000 Themis 8/1/2009 HEA - Health Department Direct Energy HEA- STAP 2009 Electricity $0.083878 kWh 12/30 0 9 MUN - Municipal Courts and Police American Electric Power (AEP) MUN - Sec > 10 kW Electricity Demand $8.601236 kW 12/30/2009 MUN - Municipal Courts and Police Direct Energy MUN - STAP 2009 Electricity $0.083878 kWh 12/30/2009 MUS - Museum of Science and History American Electric Power (AEP) MUS - Sec > 10 kW Electricity Demand $8.601236 kW 12/30/2009 MUS - Museum of Science and History City of Corpus Christi (TX) City Gas Rate Natural Gas $0.690000 Therms 811/2009 MUS - Museum of Science and History Direct Energy MUS - STAP 2009 Electricity $0.083878 kWh 12/30/2009 Sheet 1 of 1 City of Corpus Christi, TX Table 3.4 EMCS Schedules Location Occupied Schedule Occupied Schedule American Bank Center ..�.._. :.:ite,..�,<a:a• 7'00 AM 6'00 PM ♦ r • - 8'00 PM F r • ® 800 PM •� SOO PM �i •• ��� ,�.r...® ® ® M AM00 M _ u "a-..,;;.w;..,.•w�";� �.�::.�.gg 8 00 P 7 0 8 P . .. - , « s,T3x. �, '�'' - 'wl�a4e 'e�s..5�: �,i� a .'_ x, s6k�.w^.�`Ea'..a.'.++n.•eaE �R�i�i.� e L.� .€.�v..-: '«:ti d3 .a" ��KK� �$:`axw�'w.c..::: �v a .V: a�'�1"a 4: <.d,fiai.: £.-.r-.vsn.�-..... %'s..- ..r...re�i'T.rte-.,-.�-._._..� 6:00 AM 9.00 PM 6:00 AM 9-00 PM 6:00 AM 9:00 PM 6.00 AM 9.00 PM 6 00 AM9 00 PM s s ¢ OMMIZNEML 700 AM 600 PM 700 AM 600 PM 700 AM 600 PM 700 AM 600 PM 700 AM 600 PM + ,E=.7.== v.x=iLt .€. ""s au::v;: L �:r. •: 6:00 PM 6:00 AM 6:00 P 6:00 AM 12:00 A 6:00 PM 2'00AM 6:00 AM 6:00 PM x en.—• ours an.unsay ours are • a ow or •erformances. All other hours are for show setup, leanu • after shows, and maintainence. Municipal Police and Courts Municipal Police an. Courts AHU-5 AHU-6 Municipa Police and Courts Municipa Po ice and Courts AHU-10 AHU-11 Municipa Po ice and Courts Municipa Poiceand Courts Municipal Po ice and Courts AHU-20 AHU-20 AHU-24 Museum All Systems 24 rs :00 AM 6:00 PM 24 hrs :00 A 6:00 P 24 h 7:00 A 6:00 P E rs - 24 hrsMEM 7:00 AM 24 h 7:00 AM 6:00 P 7.00 AM 00 AM :00 AM 7:00 AM 7:00 AM :00 AM 7:00 AM :00 A :00 A :00 AM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM_ 6:00 M 6:00 PM 6:00 PM 6:00 PM 6:00 PM 7:00 AM 7:00 AM 7:00 AM 7:00 AM 7:00 AM :00 AM :00 AM 7:00 A 7:00 A 7:00 A ® R 24 6:00 AM 7:00 PM 6:00 AM 6:00 PM 6:00 PM 6:00 M 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 P 6:00 PM 6:00 PM 7:00 AM 7:00 AM 7:00 AM 7:00 AM 7:00 AM :00 AM 7:00 AM :00 AM 7:00 AM 7:00 AM 24 hrs 6:00 AM 6:00 PM 6:00 PM 6:00 P 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 P 6:00 P 7:00 PM 7:00 AM 7:00 AM 0 AM 7:00 A 7:00 AM 7:00 AM 7:00 A 00 AM 7:00 AM 7:00 AM 6:00 AM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 P 6:00 PM 6:00 PM 6:00 PM 7:00 PM :00 AM 7:00 A 7:00 A :00 AM 7:00 AM 7:00 AM 7:00 AM 7:00 AM 7:00 AM :00 AM 00 AM 6:00 A 6'00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 P 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 6:00 PM 7:00 PM - serves evi•ence area anwa a- a agrees in cooling season and 65 degrees in heatin ason. ystem wi go into unoccupi- • mo.e at nig t, on the weekends, and durin • holida s. System will go into unoccupi-• mode at night, on the weekends and durin • holida s. ystem WI go into unoccupi-• m• -•e at nig t, on the weekends and durin• holidas. ystem wil go into unoccupied mode at night, on the weekends and durin., holida s. ystem wi go into unoccupi•-• mo.e at nig t, on the weekends, and durin • halide s. System wi go into unoccupied mo•e at night, on the weekends and durin•holida s. ystem wi go into unoccupi--• m•.eat nig t, on the weekends and durin. -holida ystem wi I go into unoccupied mode at night, on the weekends and durin. holida . ystem wi go into unoccupie. mo•e at nig c, on the weekends, and durin• holida s. System wi go into unoccupi- • mo•e at night, on the weekends and durin• hoiada . ystem wigo into unoccupi - • m. •eat nig t, on the weekends and durin• holida s. System WI I go into unoccupi -• mode at nig t, on the weekends and durin• holida s. 6:00 AM 7:00 PM 6:00 AM 7:00 PM ours when the Museum Is closed for employees orking in the space. Note: Setpoints will fall within the standards of comfort set in section 3. Energy savings calculations allow for extended runtime in areas where irregular use occurs. These events will be scheduled via temporary schedules after which the facility will return to normal operating conditions. Examplesinclude but are not limited to: 1. Arena 2. Selena Auditorium H l$af "int/ Table 35 - Operations and Maintenance (0 cM) Detail AIR-09.01 Lighting Improvements Cety of Carpus Chrsti, TX ESPC Final 0/36/2011 nd A1R -25.01 High Efficiency Hand pryers AIR - Airport. Paper Towels Paper Towel Cast Reduction 09,600 AME •94,01 Ughttng AME . American Bank Improvements (Arena) center 1. 0110.09.01 t:vghti00 AME - AmerInen Bank Improvements (CAnvent)An. Center Center) ea Maintenance. and Repel Lamps & Ballasts $5,172 AME -09,01 Lighting Improvements (Selena Pudendum) and Lamps 6 Balls CEN -09,00 Lighting Improvements CEN - Central Library Maintenance and Repairs Lamps 6 Ballasts 42,317 CIT -02.01 Primary 00illere 6 Cooling Tower Imprpvem ens CIT -C,1y 11011 M 0000 and Rep ai.. 6 5.09 010.02.02 LT Chiller Improvements CIT - City Hall Maintenance and Repairs $0,900 CIT -09.01 Lighting Improvements Hall C1T -26.01 High Efficiency Hand Dryers CIT - City Hall Paper Towels Paper Towel Cost Reduction 99,600 HEA- 99„91 .1igt Cmprovemen end Repairs 0200 Dallas MUN -04.91 HVAC HUH - Municipal Courts Equipment. & Controls s and Petra Improvements Maintenance and Repairs Materials $16,624 Pr 1 Lighting MUN - Municipal Courts entente and Police aintena9ce and Repels 115 -09.01 Lighting MUS - Museum of Science Improvements and History 1' Confidential and Proprietary Maintenance and Repairs Sheet 1 of Lamps 6 Ballasts $4,700 Table 3.6 - Construction Period Energy Savings (Non -Guaranteed) F,,:enanD Date Est ot PI-Er:cc:1 Corrp,-ctioDatel City of Corpus Christi, TX ESPC Final 9/16/2011 6/1/2012 Facility Improvement P=1,,asur'es AIR -09.01 Lighting Improvements AIR -16.01 Computer Power Management AIR -26.01 High Efficiency Hand Dryers AME -04.01 HVAC Controls AME -09.01 Lighting Improvements (Arena) AME -09.01 Lighting Improvements (Convention Center) AME -09.01 Lighting Improvements (Selena Auditorium) AME -16.01 Computer Power Management AME -16.02 Vending Power Management AME -25.01 Retro - Commissioning (Convention Center & Arena) CEN -04.01 HVAC Controls Improvements CEN -09.01 Lighting Improvements AIR - Airport 111111=111111 111=1 AME - American Bank Center AME - American Bank Center AME - American Bank Center AME - American Bank Center AME - American Bank Center AME - American Bank Center AME - American Bank Center CEN - Central Library Ell=1111 Ectet FIMEEErc. P, ad-1E1,r 2/1/2012 12/1/2011 1/1/2012 MIIIESETIE= 2/1/2012 2/1/2012 1/1/2012 12/1/2011 12/1/2011 1/1/2012 4/1/2011 2/1/2012 4 IBM 5 4 6 EMI •SavEv;,,,, $202 $587 $0 so $9,600 $800 $36,100 $87,660 $7,798 $650 $36,569 $26,833 $20,520 $3,008 $7,305 $650 $54 $59 $3,047 $2,236 $1,710 $304 $0 so $25 so so so $0 $193 • 1 of 2 Facility Improvement measures CEN-16.01 Computer Power Management Building '.1r. •iip., Bp•. PC Cdrdidl,' i,. r. 12,il, Cn-Ipl t P.n 12/1/2011 111= $1,940 -.•- -i.0 .. ti..-ii 1 .:,r1, ()F.! ' 111:11,--- - '''. $0 l,l, l'-.- I , C.'.1 $0 C.. '-." rip:1 cn :',. , d CEN-1602 Vending Power Management 12/1/2011 MEM UM.= -4,•k' ,,,,„' 1$ - 3,,,,, ,w CIT-02.01 Primary Chillers & Cooling Tower Improvements CIT - City Hall 5/1/2012 4580 - ,.. : $155,000 $12,917 Q, .... CIT-02,02 IT Chiller Improvements CIT-04.01 HVAC Controls Improvements CIT - City Hall 3/1/2012 3 4/1/2012 IIIIM $16,606 $305 $3,900 ,-,,,,,mrmmv,,:-:k, • s$0 $325 $0 .. '14 4, '.., 4.' ' *.* M CIT-09.01 Lighting Improvements 2/1/2012 t\<- - ' .; $370 ..... .. CIT-16.01 Computer Power Management CIT-16.02 Vending Power Management 12/1/2011 6 12/1/2011 MillillEal $11,087 ;:At7,2. ,., Wz„.',' $0 $0 $105 , - - — . - -,,,W. ,, — • ‘,...,.‘,X., C1T-26.01 High Efficiency Hand Dryers HEA-09.01 Lighting =III HEA - Health Department 2/1/2012 3/1/2012 NMIMICEMZEIP*', -$172 t..A.,.,... MIN $9 600 -me ZUP4.,-, 8131Improvements MAW '' atit.1 HEA-16.01 Computer Power Management HEA - Health Department 12/1/2011 6 $2,049 l.M.•,.,,,,,;.:" -13,' „Nm, $0 $0 att**1**Ait, HEA-16.02 Vending Power Management HEA-25.01 Commissioning HEA - Health Department HEA - Health Department 12/1/2011 MIIMEMIESEfte%"'". 6/1/2012 0 $15,090 ' -,,,,s. $0 -,.,----:i.-*& 1111.4t.\,--, . 1,,,,".A$ $0 . 4o $0 •NtmmA, -. fsUk,,,d.p.V."4, tto$40,-st: lt,ets*,,:szw-s MUN-04.01 HVAC Equipment & Controls Improvements MUM - Municipal Courts and Police 4/1/2012 $2,664 -....w.,..IMZN4 $1,385 MUN-09.01 Lighting Improvements MUN - Municipal Courts and Police 3/1/2012 .111.1=1.EMIL, „ — ,•'', $3,570 MUN-16.01 Computer Power Management MUN - Municipal Courts and Police 12/1/2011 6 III=11 ,'• ,„,,, $770 $0 , ..--1 $0 PACki,lPliWll'' en-Afoct*Iii*kw, MUS-04.01 HVAC Controls Improvements MUS - Museum of Science and History 3/1/2012 MI $3,073 7' $0 $0 MUS-09.01 Lighting Improvements MUS-16.01 Computer Power Management 101111111111111101111161 MUS - Museum of Science and History,.....,,, MUS - Museum of Science and History 2/1/2012 2 12/1/2011 IIIIIII MIIIIIMMIIIIIIIIII 11=III $200 $2,0724,788 ..**....,...m1 $ , 1, 4,,,.4,_ ',..•*, „‘„, t.,-- $0 Mtm '''' - ' '''-'1 $0 2 of 2 Table 4.2 - Facility Improvement Measure (FIM) Summary City of Corpus Christi, TX ESPC Final September 16, 2011 Facility Improvernent MeaSures , FIM Cisiscriptigu Buil ing Budge * aairidal Utility • 5avIngs• Ageual Ope-ationel .... , _ _ ., , - tample Payback ,..,'Cubtegier (SF.) Potential ..reantives lUan-Cy'uai-anteed ., _ _ - _ , , Lost (i.,,,ish Ii} rcentale= Nog, -Guaranteed •,. p _•,t-rg.e, ath , 'oInciantives) MUS -04.01 HVAC Controls Improvements Integrate the existing HVAC controls systems onto the new city-wide graphical user lnterface. Install new variable frequency drives and demand controlled ventilation technoTogy on the air -handling equipment. Provide retro- commissioning of the existing equipment to improve the overalT energy performance of the facility. MUS .. Museum of Science and History $132,182 $36,881 $0 3.6 $0 $132,182 3.6 M9.01 ig US-0Lht Improvemen ts ing Upgrade the existing steno- and exterior lighting systems with new more efficient lighting technologies including controls where aoolicable MUS - Museum of Science and History $279'866 $24,864 $4,788 9,4 $12,638 $267,228 9.0 MUS -16.01 Comoute r ' Power Management Install and program a software solution on (20) compute within this facility which will reduce energy consumption durino oeriods of inactivity. r4us - Museum of . Science and History $480 $200 $0 2.4 $0 $480 2.4 MUS - museum of Science arid History (Total): $412,628 $61,946 $4,788 6.2 $12,638 $399,890 6.0 • Since design cost, audit cost, etc. are distributed among the FIMs, the total project cost will not go up or down by exactly the amounts shown here if a FIM or FIMs are dropped. • For non recurring operational savings, the values are averaged over the 10 year length of this analysis. .** Incentives are contingent on final approval and are not guaranteed. Funds are shown for reference only. Confidential and Proprietary CORPUS CHRIST MUSEUM OF SCIENCE &HISTORY MANAGEMENT AGREEMENT CASH FLOW Supplants General Fund contribution over time. AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: August 1, 2012 TO: Ronald L. Olson, City Manager FROM: Floyd Simpson, Chief of Police flovdsCa�cctexas. com 886 -2604 Accepting and appropriating the FY 12 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Local Solicitation CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the U. S. Department of Justice, Bureau of Justice Assistance, in the amount of $169,575 for the FY 12 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Local Solicitation within the Police Department, 50% of the funds to be distributed to Nueces County under an established interlocal agreement and appropriating $169,575 in the No. 1061 Police Grants Fund. PURPOSE: Accept the grant and appropriate the funds. BACKGROUND AND FINDINGS: JAG funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice for any one or more of the following purpose areas: • Law enforcement programs • Prosecution and court programs • Prevention and education programs • Drug treatment programs • Corrections and community corrections programs • Planning, evaluation, and technology improvement programs With this award, the program has provided a total of $5,038,791 in grant funds to the City since the program began in 1996. The funds have been used to purchase backbone equipment for the Mobil Data /Automated Vehicle Location project, 27 police package vehicles, 69 unmarked police units, a property van, SWAT equipment, a bomb suit, digitized radios, radios for the Communications van, digital cameras, radars, video cameras, personal computer hardware and software, an upgrade to the computer system and the radio microwave system, a mobile police substation, polygraph instrument, air packs, SWAT rescue vehicle, radios for Project 25 compliance, and other police equipment. The Police Department and Nueces County proposes to purchase law enforcement equipment within the Attorney General Priority areas of gang enforcement/prevention, cybercrime, and intelligence analysis. On 5/8/2012, City Council approved the grant application and an interlocal agreement with Nueces County to share the funds on a 50/50 basis. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Conforms to all city policies. EMERGENCY / NON - EMERGENCY: Non - emergency DEPARTMENTAL CLEARANCES: Finance Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $169,575 $169,575 BALANCE $169,575 $169,575 Fund(s): Police Grants Fund Comments: There is no match required by the City. The City will pay Nueces County a total of 50% or $84,787.50, of the JAG funds received from this award, per the interlocal agreement. RECOMMENDATION: Staff recommends accepting the grant and appropriating the funds. LIST OF SUPPORTING DOCUMENTS: Grant award letter Ordinance Authorizing the City Manager or designee to execute all documents necessary to accept a grant from the U. S. Department of Justice, Bureau of Justice Assistance, in the amount of $169,575 for the FY 12 Edward Byrne Memorial Justice Assistance Grant (JAG) Program; and Appropriating the $169,575 in the No. 1061 Police Grants Fund to fund the enhancement of law enforcement efforts by the Police Department and Nueces County under an established interlocal agreement which provides that 50% of the funds to be distributed to Nueces County BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager or designee is authorized to execute all documents necessary to accept a grant from the U. S. Department of Justice, Bureau of Justice Assistance, in the amount of $169,575 for the FY 12 Edward Byrne Memorial Justice Assistance Grant (JAG) Program. SECTION 2. That $169,575 is appropriated in the No. 1061 Police Grants Fund for the enhancement of law enforcement efforts by the Police Department and Nueces County under an established interlocal agreement. Under the interlocal agreement, 50% of the funds are to be distributed to Nueces County. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame Chris N. Adler Kelley Allen Larry Elizondo, Sr Priscilla G. Leal David Loeb John Marez Nelda Martinez Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012 by the following vote: Joe Adame David Loeb Chris N. Adler John Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr Mark Scott Priscilla G. Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa Joe Adame City Secretary Mayor AGENDA MEMORANDUM Future Item for the City Council Meeting of July 31, 2012 Action Item for the City Council Meeting of August 14, 2012 DATE: July 19, 2012 TO: Ronald L. Olson, City Manager FROM: Floyd Simpson, Chief of Police flovdsCa�cctexas. com 886 -2604 Accepting and appropriating the Texas Automobile Burglary and Theft Prevention Authority grant CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Automobile Burglary and Theft Prevention Authority (ABTPA) in the amount of $392,474 to continue the motor vehicle theft enforcement grant within the Police Department for Year 12, with a City match of $478,212, in -kind match of $14,019 in the No. 1020 Police General Fund, and program income match of $8,541 in the NO. 1061 Police Grants Fund for a total project cost of $893,246; and appropriating the $392,474 in the No. 1061 Police Grants Fund to continue the motor vehicle theft enforcement grant in the Police Department. PURPOSE: Accept the grant and appropriate the funds. BACKGROUND AND FINDINGS: The City of Corpus Christi has received Year 12 funding from the Texas Automobile Burglary and Theft Prevention Authority (ABTPA) to continue the motor vehicle theft unit in the Police Department. The ABTPA was established in 1991 due to rising auto thefts and is funded through an annual fee on every insured vehicle in Texas charged to insurance companies who provide vehicle insurance coverage in Texas. The unit focuses not only on detection and apprehension, but also on the salvage yards in the City and County to reduce the sale of stolen vehicles and parts. There is an extensive public awareness campaign that is a requirement of the grant.; numerous crime prevention programs focusing on reducing auto burglaries and thefts occur during each grant year. Since the inception of the unit in 2001, auto thefts have decreased by 69 %from 1,515to467 in2011. The grant provides funds for one Lieutenant to supervise the Unit, two sworn CCPD officers, and three civilians. The three civilians conduct data analysis, crime analysis, manage the required public awareness campaign, and maintain grant paperwork. In- kind contributions include office supplies, copy machine, and office space. Cash contributions from program income will cover travel expenses. The General Fund cash match is for three sworn officers who also work auto theft and auto burglary. Because these funds are neither Federal nor State but from an insurance fee, there is no set time limit for the grant to end; other grantees have been continuously funded for over 15 years. The City must reapply each year because the ATPA requires a very close review of performance and the grantee's ability to utilize the funds efficiently. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Conforms to all city policies. EMERGENCY / NON - EMERGENCY: Non - emergency DEPARTMENTAL CLEARANCES: Finance Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 500,772 500,772 Encumbered / Expended Amount 0 0 This item 392,474 392,474 BALANCE 893,246 893,246 Fund(s): Police General Fund, Police Grants Fund Comments: Year 12 of the grant requires at least a 20% match by the City. The match may be cash, in -kind, or program income. The Police General Fund will provide a cash match of $478,212 for sworn officers' salaries /benefits, in -kind contribution of $14,019 for office space /operating costs, and program income of $8,541 for travel and other operating costs. The grant period is 9/01/12 — 8/31/13. RECOMMENDATION: Staff recommends accepting the grant and appropriating the funds. LIST OF SUPPORTING DOCUMENTS: Grant award letter Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Automobile Burglary and Theft Prevention Authority (ABTPA) in the amount of $392,474 to continue the motor vehicle theft enforcement grant within the Police Department for Year 12; and Appropriating the $392,474 in the No. 1061 Police Grants Fund BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager or designee is authorized to execute all documents necessary to accept a grant from the Texas Automobile Burglary and Theft Prevention Authority (ABTPA) in the amount of $392,474 to continue the motor vehicle theft enforcement grant within the Police Department for Year 12, with a City match of $478,212, in -kind match of $14,019 in the No. 1020 Police General Fund, and program income match of $8,541 in the NO. 1061 Police Grants Fund for a total project cost of $893,246; SECTION 2. That $392,474 grant is appropriated in the No. 1061 Police Grants Fund to continue the motor vehicle theft enforcement grant in the Police Department. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012 by the following vote: Joe Adame David Loeb Chris N. Adler John Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr Mark Scott Priscilla G. Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor TEXAS AUTOMOBILE BURGLARY AND THEFT PREVENTION AUTHORITY GRANTEE ACCEPTANCE NOTICE AGREEMENT: That whereas City of Corpus Christi hereinafter referred to as Grantee, has heretofore submitted a grant application to the Automobile Burglary and Theft Prevention Authority, State of Texas, entitled Auto Theft Prevention Grant , and further identified by grant number SA- T01- 10045 -13 ; and Whereas, the Automobile Burglary and Theft Prevention Authority has approved the grant application as evidenced by the Statement of Grant Award from the Automobile Burglary and Theft Prevention Authority dated 06/26/2012, certain special requirements; and Whereas, the Grantee desires to accept the grant award, the Uniformed Grant and Contract Management Standards, and special requirements as evidenced by the Statement of Grant Award; Now, therefore, the Grantee accepts the aforementioned Statement of Grant Award, the Uniformed Grant and Contract Management Standards and special requirements in the grant application and the Statement of Grant Award as evidenced by the agreement, executed -by the project director, the - financial officer, and- the official -- authorized to sign the original grant application, or the official's successor, as presiding officer of and on behalf of the governing body of this grantee; and Now, therefore, the Grantee shall designate either the project director or the financial officer to coordinate and be solely responsible for submission of adjustments pertaining to both program and financial elements of the application, and the POSITION authorized to submit adjustments is NON - LOBBYING CERTIFICATION: We, the undersigned, certify that none of the grant funds, regardless of their source or character, including local cash assumption of cost funds, shall be used in any manner to influence the outcome of any election or the passage or defeat of any legislative measure. A finding that a grantee has violated the certification shall result in the immediate termination of funding of the project and the grantee shall not be eligible for future funding from the Automobile Burglary and Theft Prevention Authority. Certified By: Date: Signature of Project Director Signature of Project Manager Name & Title(must print or type) Name & Title(must print or type) Official Agency Address(street or post office box) Official Agency Address(street or post office box) City /Zip Code/Telephone Number City /Zip Code /Telephone Number Signature of Authorized Official Signature of Financial Officer Name & Title (must print or type) Name & Title (must print or type) Official Agency Address (street or post office box) Official Agency Address (street or post office box) City/Zip Code /Telephone Number City /Zip Code /Telephone Number Grant Number: Grantee Name: Project Title: Grant Period: Texas Automobile Burglary and Theft Prevention Authority Statement of Grant Award SA -T01- 10045 -13 City of Corpus Christi Corpus Christi Auto Theft Prevention Grant 09/01/2012 - 08/31/2013 ABTPA Award: Grantee Cash Match: Grantee In-Kind Match: Total Project Cost: $392,474 $486,753 $14,019 The Texas Automobile Burglary and Theft Prevention Authority (ABTPA) has awarded: the above - referenced grant. The approved budget is reflected in the attached Approved Budget Summary. This grant is subject to and conditioned upon acceptance of the ABTPA Grant Application and Administration Guidelines (Guide) promulgated for this specific program fund (referenced above) through the Automobile Burglary and Theft Prevention Authority. Applicable special conditions are contained in the Guide or cited below. Total project costs must be accounted for in accordance with the Uniform Grant and Contract Management Standards and the Guide. GRANTEE REQUEST FOR FUNDS All Grantee request for funds shall be submitted to ABTPA in accordance with the instructions provided by ABTPA and shall be in the form required by ABTPA. Requests for funds will not be honored until all special conditions outlined on the Statement of Grant Award and that required action on the part of the grantee have been satisfied. GRANT ADJUSTMENTS Grantee shall submit written requests for grant adjustments, as required by the applicable ABTPA Rule contained in the Grant Application and Administration Guidelines for this specific program fund. Special Conditions and Requirements: City /County Resolution JUL 0 9 2012 AWARD DATE CHARLES CALDWELL Automobile Burglary and Theft Prevention Authority 4000 Jackson Avenue, Austin, Texas 78731 512/374-5101 Texas Burglary and Automobile Theft Prevention Authority Approved Budget Summary Grant Number: SA - -T01- 10045 -13 Grantee:. City of Corpus Christi Project Title: • Corpus Christi Auto Theft Prevention Grant Grant Period: 09/01/2012 to 08/31/2013 Funding Source: Auto Burglary & Theft Prevention Authority Region: 2000 Date: 07/09/12 ABTPA Cash Match In -Kind TOTAL A. Personnel: $324,055 $478,212 $802,267, B. Contractual: $0. C. Travel: $10,000 $8,541 $18,541 D. Equipment: $0 E. Supplies: $58,419 $14,019 $72,438 F. Indirect: $0 Total: $392,474 $486,753 $14,019 $893,246 Budget Detail: A. Lieutenant $74,393; Detective $69,089; Detective $69,089; Grant Administrator $35,609; Criminal Analyst $38,088; Intake Specialist $30,047; Fringe Benefits $7,740 C. ABTPA Board Meetings $4,074; ABTPA Conference $5,556; TCPA $370 E. Office Supplies $5,000; Communications $12,000; Public Awareness $5,000; Postage $500; Fuel $20,000; Confidential Funds $5,000; Vehicle Maintenance $7,000; (10) TAVTI Registrations $1,500; TCPA Registion $330; BSM Wireless $2,089 -Law Enforcement, Detection and Apprehension Watch Your Car. TEXAS AUTO BURGLARY &1HEF7 PAEVEMIUH AUIHORIE4 July 9, 2012 Mr. Ronald Olson City Manager City of Corpus Christi 1201 Leopard Street Corpus Christi, Texas 78401 Re: GRANT NBR: SA- T01- 10045 -13 YEAR OF FUNDING: 11 APPLICATION: City of Corpus Christi TITLE: Corpus Christi Auto Theft Prevention Grant AMOUNT: $ 392,474 Dear Mr. Olson: I am pleased to inform you that the above referenced grant is approved in the amount indicated. The grant award must be accepted within 30 days by completing and returning the enclosed grantee acceptance notice to the Texas Automobile Burglary & Theft Prevention Authority. I look forward to working with you to ensure the success of your program. Any questions relating to the administration of this grant should be directed to our office by calling the Grant Administrator, Jan Gregg (512) 374 -5107. Sincerely, Charles Caldwell Director, ABTPA AGENDA MEMORANDUM Future Item for the City Council Meeting of July 31, 2012 Action Item for the City Council Meeting of August 14, 2012 DATE: July 20, 2012 TO: Ronald L. Olson, City Manager FROM: Floyd Simpson, Chief of Police flovdsCa�cctexas. com 886 -2604 Accepting and appropriating the Local Border Security Program grant CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Ranger Division of the Texas Department of Public Safety in the amount of $155,000 for the FY2012 Local Border Security Program within the Police Department and appropriating $155,000 in the No. 1061 Police Grants Fund.. PURPOSE: Accept the grant and appropriate the funds. BACKGROUND AND FINDINGS: The Police Department will assist the Texas Department of Public Safety on an overtime basis with operations for border security. There is no match required. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Conforms to all city policies. EMERGENCY / NON - EMERGENCY: Non - emergency DEPARTMENTAL CLEARANCES: Finance Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item 155,000 155,000 BALANCE 155,000 155,000 Fund(s): Police Grants Fund Comments: . RECOMMENDATION: Staff recommends accepting the grant and appropriating the funds. LIST OF SUPPORTING DOCUMENTS: Grant award letter Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Ranger Division of the Texas Department of Public Safety in the amount of $155,000 for the FY2012; and Appropriating the $155,000 in the No. 1061 Police Grants Fund BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager or designee is authorized to execute all documents necessary to accept a grant from the Texas Ranger Division of the Texas Department of Public Safety in the amount of $155,000 for the FY2012 Local Border Security Program within the Police Department. SECTION 2. That $155,000 is appropriated in the No. 1061 Police Grants Fund. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012 by the following vote: Joe Adame David Loeb Chris N. Adler John Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr Mark Scott Priscilla G. Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor Program Title: NOTICE OF GRANT AWARD TEXAS RANGER DIVISION Local Border Security Program FY 2012 (LBSP -12) Funding Instrument: General Appropriations Act, Rider 41, 82nd Legislature Administered by: Grant Number: Texas Ranger Division Texas Department of Public Safety P.O. Box 4087 Austin, Texas 78773 -0600 LBSP -12 -0005 Recipient: Corpus Christi Police Department Amount of Grant: $155,000.00 Period of Grant: July 6, 2012 through January 31, 2013 AGENCY APPROVAL GRANT ACCEPTANCE ty - t i'rector Printed Name: Title: Date: Date: moo/ Return Signed Original to: Texas Rangers Division Texas Department of Public Safety Attention: Brandy Prinz P.O. Box 4087 Austin, Texas 78773 -0600 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 25, 2012 TO: Ronald L. Olson, City Manager FROM: Rick Stryker, Museum Director ricks @cctexas.com 361- 826 -4660 Accept Sessions bequest and transfer receipts to the Friends of the Museum. CAPTION: Ordinance authorizing the City Manager to execute all documents necessary to accept disbursements from mineral interests from the Estate of L. Lloyd Sessions; appropriating distribution in the No. 1069 Museum Grants Fund and authorizing the transfer to the Friends of the Museum of Science and History for the benefit of the Museum PURPOSE: Enabling the receipt and transfer of mineral interest income from the Sessions Bequest and transferring those funds to the Friends of the Museum for benefit of the Museum. BACKGROUND AND FINDINGS: Funds are sometimes donated through estates to the City to benefit the Museum. The City typically transfers such bequests to the Friends of the Museum. The Friends use their resources to fund exhibits, education programs, and special projects at the Museum. The Museum was among the beneficiaries of the Estate of Lloyd Sessions. The Sessions Estate was finalized in 1999, but the City was not informed until 2012 that mineral interests had been bequeathed to the Museum. The 2012 Appraised value is $8,370. This action will enable the City Manager to sign a Division Order with Endeavor Energy Resources, LP which will distribute funds accumulated since 2004, estimated to be $20,000. These funds will transfer to the Friends and will be used for benefit of the Museum. Subsequent and ongoing distributions in much smaller amounts will be forthcoming and deposited with the Friends. The Friends will pay property taxes on these distributions. ALTERNATIVES: It is conceivable that the mineral interests could be sold, but that alternative is not recommended. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: The Friends of the Museum of Science and History was formed nearly 40 years ago to encourage private philanthropy benefitting the Museum. It is in the City's interest to encourage the donation of funds to underwrite the cost of exhibits, education programs, and special projects because this lowers the operating cost of the Museum for the City. Individuals are much less likely to donate funds for the Museum directly to the City. The Friends routinely spend hundreds of thousands of dollars on Museum projects annually. EMERGENCY / NON - EMERGENCY: Non- emergency - this is a routine, non - controversial item. DEPARTMENTAL CLEARANCES: There were no departments and /or boards impacted by this action. FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2012- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item 20,000 20,000 BALANCE 0 20,000 20,000 Fund(s): 1069 Museum Grants Fund Comments: The $20,000 is an estimated amount. RECOMMENDATION: City staff recommend the passage of the ordinance that facilitate the receipt and transfer of the funds from the Sessions Bequest to the Friends of the Museum LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance authorizing the City Manager to execute all documents necessary to accept disbursements from mineral interests from the Estate of L. Lloyd Sessions; appropriating distributions in the No. 1069 Museum Grant Fund and authorizing the transfer to the Friends of the Corpus Christi Museum of Science and History for the benefit of the Museum. Now, therefore, be it ordained by the City Council of the City of Corpus Christi, Texas: Section 1. That the City Manager is authorized to execute all documents necessary to accept disbursements from mineral interests from the Estate of L. Lloyd Sessions for the benefit of the Corpus Christi Museum of Science and History. Section 2. That said disbursements are to be appropriated in the No. 1069 Museum Grant Fund, and transferred to the Friends of the Corpus Christi Museum of Science and History for the benefit of the Museum. Section 3. That this ordinance takes effect upon final approval of the City Council. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED, this the day of , 2012. ATTEST: Armando Chapa Joe Adame City Secretary Mayor AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 31, 2012 TO: Ronald L. Olson, City Manager FROM: Mark E. Van Vleck, P.E., Interim Director, Development Services MarkVV@cctexas.com (361) 826 -3246 UTILITY EASEMENT CLOSURE Abandoning and vacating a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94- square -foot portion of a 10- foot -wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision. CAPTION: Ordinance abandoning and vacating a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94- square -foot portion of a 10 -foot- wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision; and requiring the owner, Weatherford U.S., L.P., to comply with the specified conditions. PURPOSE: The purpose of this item is to eliminate a utility easement from an industrial property to allow for construction of an industrial building in the area where the utility easement is located. BACKGROUND AND FINDINGS: Urban Engineering, on behalf of Weatherford U.S., L.P. (Owner), is requesting the abandonment and vacation of a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Airport Industrial Subdivision, Block 6, Lot 1A, and a 6,721.94- square -foot portion of a 10- foot -wide utility easement out of Airport Industrial Subdivision, Block 4, Lot 3. The abandonment and vacation of the utility easement is requested in order to accommodate the future development of the property. Staff recommends that payment of fair market value be waived in accordance with City Code of Ordinance Sec. 49 -12, because Owner will be replatting said property and upon replatting will be dedicating utility easements of equal or greater value to off -set the proposed abandonment and vacation of the easement. The Owner must also comply with all the specified conditions of the abandon and vacate ordinance within 180 days of Council approval. ALTERNATIVES: Denial of the utility easement closure. This will, however, adversely impact the Owner's ability to move forward with construction on the property. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: These requirements are in compliance with the City Code of Ordinances, Sec. 49 -13. EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: All public and franchised utilities were contacted. None of the city departments or franchised utility companies had any facilities or objections regarding the proposed easement closure. FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: None RECOMMENDATION: Staff recommends approval of the easement closure subject to the Owner's compliance with all the following specified conditions of the easement closure ordinance: a. Owner must dedicate to the City new utility easements of equal or greater value than the utility easements being released by the City in this easement closure action, in accordance with the Corpus Christi Code of Ordinances, Section 49 -12, within 180 days of City Council approval of this ordinance so that the requirement of paying fair market value for the properties can be waived. b. Upon approval by the City Council and issuance of the ordinance, all grants of easement closure and specified conditions must be recorded at Owner's expense in the Official Deed and Map Records of Nueces County, Texas, in which the affected properties are located. c. Prior to the permitting of any construction on the affected properties, the Owner must submit up -to -date surveys, abstracted for all easements and items of record, to the Director of Development Services, or his designee. d. Owner must comply with all specified conditions of the ordinance within 180 days of City Council approval. LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibits Ordinance abandoning and vacating a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94- square -foot portion of a 10- foot -wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision; and requiring the owner, Weatherford U.S., L.P., to comply with the specified conditions. WHEREAS, Urban Engineering, acting as agent on behalf of Weatherford U.S., L.P., ( "Owner ") is requesting the abandonment and vacation of a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94- square -foot portion of a 10- foot -wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision, located north of State Highway 44 and west of North Padre Island Drive (State Highway 358), to accommodate future development of the property; WHEREAS, with proper notice to the public, a public hearing was held on Tuesday, August 21, 2012, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94 - square -foot portion of a 10- foot -wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision, subject to the provisions in this ordinance included below. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. Pursuant to the request of Urban Engineering, acting as agent on behalf of Weatherford U.S., L.P. ( "Owner"), a 3,357.08- square -foot portion of a 5- foot -wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, and a 6,721.94- square- foot portion of a 10- foot -wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision, located north of State Highway 44 and west of North Padre Island Drive (State Highway 358), as recorded in Volume 67, Page 208, and Volume 42, Page 143, respectively, of the Official Deed and Map Records of Nueces County, Texas, are abandoned and vacated by the City of Corpus Christi ( "City "), subject to Owner's compliance with the conditions specified in Section 2 of this ordinance. Exhibit "A," which is a site map, Exhibit "B," which is a metes and bounds description, and Exhibit "C," which is a field notes map, are attached to and incorporated in this ordinance by reference as if each were fully set out herein in its entirety. Section 2. The abandonment and vacation of the utility easements described in Section 1 of this ordinance is expressly conditioned upon Owner's compliance with the following requirements: a. Owner must dedicate to the City new utility easements of equal or greater value than the utility easements being released by the City in this easement closure action, in accordance with the Corpus Christi Code of Ordinances, Section 49- 12, within 180 days of City Council approval of this ordinance so that the requirement of paying fair market value for the properties can be waived. b. Upon approval by the City Council and issuance of the ordinance, all grants of easement closure and specified conditions must be recorded at Owner's expense in the Official Deed and Map Records of Nueces County, Texas, in which the affected properties are located. c. Prior to the permitting of any construction on the affected properties, the Owner must submit up -to -date surveys, abstracted for all easements and items of record, to the Director of Development Services, or his designee. d. Owner must comply with all specified conditions of the ordinance within 180 days of City Council approval. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal The foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal EHord363 Weatherford Util Easemt AV Airport Industrial vFinal Page 2 of 3 PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor EHord363 Weatherford Util Easemt AV Airport Industrial vFinal Page 3 of 3 SITE MAP N.T.S. EXHIBIT A URBANREV: APR. 5, 2012 DATE. FEB. 15, 2012 ENGINEERING SCALE N.T.S. JOB NO.: 33363.B2.01 CORPUS CHRISTI, TEXAS / / SHEET: 2 OF 2 Firm No. 145' 2725 Swantner St, Corpus Christi, 1X 76404 DRAWN BY: DL PHONE (361) 854 -3101 FAX. (361) 654 -6001 02012 by Urban Engineering 0 D 0 L_ 0_ 0 o 0 /o 0 0 E 0 > Hopkins 0 0 0 C I! I North Padre Island Road (State Highway 358) , _ f "Agnes °` Street (S • • r 44) Site \...__ o . 11 _,4,1%/ -o 0 S.H. 44 (') Forrest (� I\ c 0 u) c EXHIBIT A URBANREV: APR. 5, 2012 DATE. FEB. 15, 2012 ENGINEERING SCALE N.T.S. JOB NO.: 33363.B2.01 CORPUS CHRISTI, TEXAS / / SHEET: 2 OF 2 Firm No. 145' 2725 Swantner St, Corpus Christi, 1X 76404 DRAWN BY: DL PHONE (361) 854 -3101 FAX. (361) 654 -6001 02012 by Urban Engineering State of Texas County of Nueces Revised: April 5, 2012 February 16, 2012 Job No. 33363.B2.01 FIELDNOTES for the closing of a 10.00 foot wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision, a map of which is recorded in Volume 67, Page 208, Map Records of Nueces County, Texas and a 5.00 foot wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, a map of which is recorded in Volume 42, Page 143, Map Records of Nueces County, Texas; said closure being more fully described by metes and bounds as follows: Commencing at a 5/8 inch iron rod found on the north boundary of State Highway No. 44, a public roadway, for the southwest corner of said Lot 1A, same being the southeast corner of said Lot 3; Thence, South 78 °09'44" West (Record= South 80°07'19" West), along the north boundary of said State Highway No. 44, same being the south boundary of said Lot 3, a distance of 10.17 feet; Thence, North 01°28'44" West (Record= North 00 °02'20" West), along the west boundary of an existing 10 foot utility easement, a distance of 15.25 feet to the southwest corner of this closure; Thence, North 01°28'44" West (Record= North 00 °02'20" West), along the west boundary of this closure, a distance of 673.09 feet for the northwest corner of this closure; Thence, North 88 °33'58" East, along the north boundary of this closure, at 10.00 feet pass the common boundary of said Lot1A and said Lot 3, in all a total distance of 15.00 feet for the northeast corner of this closure; Thence, South 01 °28'44" East (Record= South 01°29'06" East), along the east boundary of this closure, a distance of 671.33 feet for the southeast corner of this closure; Thence, South 86 °38'00" West (Record= South 86 °10' 13" West), along the south boundary of this easement closure, a distance of 6.61 feet for an interior corner of this easement closure; Thence, South 78 °09'44" West (Record= South 80 °07' 19" West), continuing along the south boundary of this easement closure, a distance of 8.53 feet to the Point of Beginning and containing 0.231 acres (10,079.02 square feet) of land. Bearings based on GPS bearings, NAD83, Texas South Zone. National Geodetic Survey Monuments "SN -150" (North Coordinate = 17,175,917.840 East Coordinate = 1,317,744.166) and "SO -170" (North Coordinate = 17,175,176.393 East Coordinate = 1,306,952.3320) were used as control points for establishing basis of bearing. Unless this fieldnotes description, including preamble, seal and signature, appears in its entirety, in its original form, surveyor assumes no responsibility for its accurac \ \Urbanfs02\Data\ Surveying \33363\B201 \fn33363B201- Page 1 of 1 (361)854 -3101 EXHIBIT B URBAN ENGINEERING Juan J. Salazar, R.P.L.S. License No. 4909 2725 SWANTNER DR. • CORPUS CHRISTI, TEXAS 78404 FAX (361)854 -6001 www.urbaneng.com TBPE Firm #145 150 100 50 0 GRAPHIC SCALE 1 =100 Lot 1, Block 4 Airport Industrial Subdivision Vol. 67, Pg. 208, Map Records of Nueces County, Texas 100 1 200 0 5 o H '55 0 2c iiagS kr d o J20�Y.R. 15'U.E: an i.i N88633'58 "E 15.00' J 0 0. > 0A oa 0 N co o P o o 0 N 'O u0 Z Point of Be 151.1.E. (Record=S80'07'19"W) S78'09'44"W 8.53' State Highway No. 44 EXHIBIT C N01'28'44 "W 15.25' (Record= N00'02'20 "W) S78'09'44"W 10.17' (Record= S80'07' 19"W) Map to Accompany FIELDNOTES for the closing of a 10.00 foot wide utility easement out of Lot 3, Block 4, Airport Industrial Subdivision, a map of which is recorded in Volume 67, Page 208, Map Records of Nueces County, Texas and a 5.00 foot wide utility easement out of Lot 1A, Block 6, Airport Industrial Subdivision, a map of which is recorded in Volume 42, Page 143, Map Records of Nueces County, Texas. Easement aosure 0.231 Acres, 10,079.02 Sq.Ft. F 0 az th M n Lot 1A, Block 6 co Airport Industrial Subdivision Vol. 42, Pg. 143, Map Records of Nueces County, Texas L.IF = o �Sv 0 N ti o O§ (n 60' r (Record = 58610'13 "W) S86'38'00*W 6.61' Point of Commencement Fd. 5/8" I.R. 20'B.L. Note: No monumentation found or set unless otherwise noted. U ■■ e A Nt DATE: Aft. 5,52012 2012 ENGINEERING SCALE ' 100 JOB NO.: 33363.82.01 _, CORPUS CHRISTI, TEXAS / SHEET: 1 OF 2 Firm No. 145. 2725 Swantner St, capus Christi,, 7X 78404 / DRAWN BY: DL 02012 by Urban Engineering PHONE: (361) 854 -3101 FAX (361) 854 -6001 AGENDA MEMORANDUM First Public Hearing For the City Council Meeting of August 14, 2012 Second Public Hearing For the City Council Meeting of August 21, 2012 DATE: August 14, 2012 TO: Ronald L. Olson, City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP ©cctexas.com (361) 826 -3227 Public Hearing on Fiscal Year 2013 Ad Valorem Taxes CAPTION: Public Hearing on Fiscal Year 2013 Ad Valorem Taxes PURPOSE: The State Property Tax code requires that two public hearings be held when a taxing unit proposes to impose an amount of property taxes that exceeds the preceding year's property taxes. BACKGROUND AND FINDINGS: The City of Corpus Christi is proposing to keep the ad valorem tax rate the same for fiscal year 2012 -2013 as it was for fiscal year 2011 -2012 at $0.570557 per $100 valuation. This rate will generate more revenue for fiscal year 2012 -2013 because of the increase in assessed property values and the new growth from the prior year. However, the City is not raising the property tax rate. If a proposed property tax rate exceeds the effective tax rate, the Property Tax Code requires that the governing body must schedule two public hearings on the proposal. Since the property tax rate in the adopted fiscal year 2012 -2013 budget of $0.570557 per $100 valuation exceeds the effective tax rate of $0.562666 per $100 valuation, then State law requires the City Council to hold two public hearings. This is the first of the two public hearings. The second public hearing will be held on Tuesday, August 21, 2012. ALTERNATIVES: n/a OTHER CONSIDERATIONS: n/a FINANCIAL IMPACT: ❑Not Applicable ❑ Operating Expense X Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budget - $ 77,518,178 $ - $ 77,518,178 Encumbered /Expended amount of (date) - - - This item - $ 77,518,178 $ - $ 77,518,178 BALANCE - - $ - $ - FUND(S): General Fund $51,282,246 Debt Service Fund $26,235,932 COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the ad valorem tax rate of $0.57557 per $100 valuation on August 28, 2012. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON-EMERGENCY: • N/A DEPARTMENTAL CLEARANCES: • Legal Department LIST OF SUPPORTING DOCUMENTS: • None cc: Lisa Aguilar, Assistant City Attorney Eddie Houlihan, Assistant Director of Management and Budget Margie C. Rose, Assistant City Manager AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 18, 2012 TO: Ronald L. Olson, City Manager FROM: Mark E. Van Vleck, P.E., Interim Director, Department of Development Services MarkVV @cctexas.com (361) 826-3246 PUBLIC HEARING — CHANGE OF ZONING Calallen GP, LLC (Case No. 0612 -02) Change from "FR" Farm Rural District to "CG -2" General Commercial District Property Address: 14801 Northwest Boulevard CAPTION: PUBLIC HEARING — ZONING Case No. 0612 -02: Calallen GP, LLC: A change of zoning from the "FR" Farm Rural District to the "CG -2" General Commercial District, resulting in a change of future land use from commercial and medium density residential uses to commercial uses. The property to be rezoned is described as being a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park, located on the southeast corner of Northwest Boulevard (FM 624) and FM 1889. PURPOSE: The purpose of this item is the change the zoning district on land at 14801 Northwest Boulevard from a Farm Rural district to a Commercial district to allow for construction of a grocery store and retail center. RECOMMENDATION: Planning Commission and Staff Recommendation (June 20, 2012): Denial of the applicant's request for the "CG -2" General Commercial District on 36.896 acres and, in lieu thereof, approval of the "CG -2" General Commercial District on Tract 1 (29.243 acres) and the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres). BACKGROUND AND FINDINGS: The purpose of this zoning change is to allow for construction of mixed -use commercial retail center, which includes a grocery store and possible apartment complex or business park, on approximately 37 acres at the southeast corner of Northwest Boulevard (FM 624) and FM 1889. The applicant proposes to subdivide the property into eight commercial lots ranging from one to twelve acres each. During the first development phase, a 64,000- square -foot grocery store located in one building and approximately 64,000 square feet of general retail space located in four other buildings would be constructed on 22 of the 37 acres. There is no development plan for the remaining acreage at this time, but it is projected for possible medium density residential uses or business park. The applicant is in agreement the Planning Commission and Staff recommendation of the "CG -2" General Commercial District on 29.243 acres toward the front portion of the lot and the "CN -1" Neighborhood Commercial District on 7.653 acres toward the rear portion of the lot near the single - family neighborhood, which would provide an improved transition from the high - intensity commercial uses and the low- intensity residential uses to the south. ALTERNATIVES: 1. Approve the applicant's original request of "CG -2" General Commercial on 36.896 acres; 2. Approve an intermediate zoning district or Special Permit; or 3. Deny the request. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: The change of zoning to commercial zoning on the 37 acres would not be consistent with the Future Land Use Map, which slates the rear portion of the subject property for medium density residential uses. However, the rezoning is consistent with Area Development Plan, which states that the most appropriate locations for small -scale commercial development is at intersections of arterial roadways. The modified rezoning request which incorporates Neighborhood Commercial zoning is consistent with a policy of the Comprehensive Plan, which calls for the buffering of low- intensity residential uses from high- intensity commercial uses with open space or transitional zoning districts. EMERGENCY / NON - EMERGENCY: Staff is requesting an emergency reading. According to Article II, Section 14 of the City Charter, an item can be classified as an emergency because it calls for "immediate action necessary for the efficient and effective administration of the city's affairs ". This is a routine, non - controversial item. DEPARTMENTAL CLEARANCES: Planning Commission, Planning and Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: None LIST OF SUPPORTING DOCUMENTS: 1. Aerial Overview Map 2. Zoning Report with Attachments 3. Ordinance with Exhibits for the Planning Commission Recommendation 4. Ordinance with Exhibits for the Applicant's original request ZONING REPORT Case No.: 0612 -02 HTE No. 12- 10000017 Planning Commission Hearing Date: June 20, 2012 Applicant & Legal Description Applicant: CalaIlen GP, LLC Representative: Mark Johnson, Bury + Partners -SA, Inc. Owners: Lois Lowman, Connie Diane Brown Polk Laing, Herman Bruce Lowman, NRIP, LLC, and Cloudcroft Land Ventures, Inc. Legal Description /Location: Being a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park, located on the southeast corner of Northwest Blvd. (FM 624) and FM 1889. Zoning Request From: "FR" Farm Rural District To: "CG -2" General Commercial District Area: 36.896 acres Purpose of Request: For the development of grocery and retail center, as well as a possible apartment complex. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site "FR" Farm Rural Agricultural Commercial & Medium Density Residential North "CG -2" General Commercial Vacant & Commercial Commercial South Outside City Limits Estate Residential Low Density Residential East "FR" Farm Rural Agricultural Commercial & Medium Density Residential West "CG -2" General Commercial & "CN -1" Neighborhood Commercial Agricultural & Commercial Commercial ADP, Map & Violations Area Development Plan: The subject property is located in the Northwest Area Development Plan (ADP) and is planned for commercial and medium density residential uses. The proposed change in zoning to the "CG -2" General Commercial District is partially consistent with the adopted Future Land Use Plan. Map No.: 068050 & 068051 Zoning Violations: None Transport- ation Transportation and Circulation: The subject property has approximately 1,000 feet of frontage along Northwest Blvd. (FM 624), which is an existing A3 Primary Arterial as indicated in the Urban Transportation Plan, and 1,500 feet of frontage on FM 1889, which is a proposed A2 Secondary Arterial. Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume Northwest Blvd. (FM 624) "A3" Primary Arterial 130' ROW, 79' paved width 150' ROW, 65' paved width Year 2010 28,961 ADT (West of US 77) 10,652 ADT (West of FM 1889) FM 1889 "A2" Secondary Arterial 100' ROW, 54' paved width 100' ROW, 40' paved width Year 2011 4,551 ADT (South of FM 624) Zoning Report Case #0612 -02, Calallen GP, LLC Page 2 Staff Summary: Requested Zoning: The applicant has requested a change of zoning from the "FR" Farm Rural District to the "CG -2" General Commercial District on approximately 37 acres of land, located at the southeast corner of Northwest Blvd. and FM 1889. This zoning change has been initiated to allow for the development of a commercial center. Applicant's Development Plan: The applicant proposes to subdivide the property into eight commercial lots ranging from one to twelve acres each. During the first development phase, a 64,000- square -foot grocery store located in one building and approximately 64,000 square feet of general retail space located in four other buildings would be constructed on 22 of the 37 acres. There is no development plan for the remaining acreage at this time, but it is projected for possible medium - density residential uses. Existing Land Uses: The subject property is currently used for agricultural purposes. To the north of the subject property is Northwest Blvd., where there is vacant and commercial land zoned "CG -2" General Commercial. Located to the east of the subject property is a large vacant/agricultural lot zoned "FR" Farm Rural. The property immediately to the south of the subject property is outside city limits and is developed with one -acre residential estates. Located to the west and across FM 1889 is vacant land, a credit union, and gas station among other commercial uses. Comprehensive Plan & Area Development Plan (ADP) Consistency: The Comprehensive Plan and the Northwest Area Development Plan (ADP) slate the subject property for approximately 11 acres of commercial uses and 26 acres of medium density residential uses. The proposed change of zoning to the "CG -2" General Commercial District on the 37 acres would not be consistent with the Future Land Use Plan. However, the proposed rezoning is consistent with Land Use Policy Statement B.1.d from the Northwest ADP, which states that the most appropriate locations for small -scale commercial development is at intersections of arterial roadways (this pattern being described as "nodal commercial development "). Strip commercial development is discouraged from occurring along arterial roadways. Additionally, the Comprehensive Plan generally calls for the buffering of low density residential uses from higher intensity uses. Plat Status: The subject property is not platted. Department Comments: • The applicant's request of the "CG -2" District on 37 acres does not afford much protection to the adjacent single - family neighborhood from some of the more offensive uses allowed in the "CG -2" District, such as bars, restaurants greater than 2,500 square feet, self- storage facilities, and truck stops with overnight accommodations. • After discussing a modified zoning change request with the applicant, Staff recommends the "CN -1" Neighborhood Commercial District along a portion of FM 1889 and around the retention pond as a transition between the General Commercial area along Northwest Blvd. and the single - family neighborhood to the south. (Attachment 3). The applicant is in agreement with the modified request and will prepare a revised metes and bounds survey depicting the proposed zoning boundaries. • Incorporating the "CN -1" Neighborhood Commercial District as a transition between General Commercial and single - family zoning districts would be consistent with the zoning patterns across FM 1889 and in the Northwest Area. Zoning Report Case #0612 -02, Calallen GP, LLC Page 3 Planninq Commission & Staff Recommendation (June 20, 2012): Denial of the applicant's request for "CG -2" General Commercial District on 36.896 acres and, in lieu thereof, approval of the "CG -2" General Commercial District on Tract 1 (29.243 acres) and the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres) (Attachment 3). Public Notifi cation Number of Notices Mailed — 15 within 200' notification area; 1 outside notification area As of July 10, 2012: In Favor In Opposition For 0.0% in opposition. — 2 (inside notification area); 0 (outside notification area) — 0 (inside notification area); 0 (outside notification area) Attachments: 1. Site Map — Existing Zoning, Notice Area, & Ownership Map 2. Site Plan 3. Planning Commission and Staff Recommendation K: \DevelopmentSvcs \SHARED\ZONING CASES \0612 -02 Calallen GP, LLC \0612 -02 Report for CC, Calallen GP LLC, 6- 27- 12.doc NIi2 6 RIV �GHTS 1 ORTHWEST ESTAES UNIT 2 1 NORTHWEST ESTATES U'E 11 LAME 1 i 13 6/6/2012 -Prepared By_ jeremym Department of Development Services CASE: 0612 -02 2. SITE - EXISTING ZONING, NOTICE AREA & OWNERSHIP RM -1 Multifamily 1 RM -2 Multifamily 2 RM -3 Multifamily 3 ON Professional Office RM -AT Multifamily AT CN -1 Neighborhood Commercial CN -2 Neighborhood Commercial CR -1 Resort Commercial CR -2 Resort Commercial CG -1 General Commercial CG -2 General Commercial CI Intensive Commercial CBD Downtown Commercial CR -3 Resort Commercial FR Farm Rural H Historic Overlay BP Business Park IL Light Industrial IH Heavy Industrial PUD Planned Unit Dev. Overlay RS -10 Single - Family 10 RS -6 Single - Family 6 RS-4.5 Single - Family 4.5 RS -TF Two - Family RS -15 Single - Family 15 RE Residential Estate RS -TH Townhouse SP Special Permit RV Recreational Vehicle Park RMH Manufactured Home Subject Property O Owners with 200' buffer in favor 4 Owners within 200' listed on V Owners attached ownership table A in opposition SUBJECT PROPERTY n i S LOCATION MAP IRMA City o Corpus Christi ni • , 170,rsls000xlcw -43,51 ,,oec L DALE NCL REVISOR APPROVAL PLOTRNO SCALE: 1"= BO• DATE REVISED: June 11 2012 e:volles \s000%Ma ul. DRAWN BY: A CALALLEN COMMERCIAL NEIGHBORHOOD DEVELOPMENT DESIGNED BY: M. RENEWED BY: 1,1R1 PROJECT NO.: R0101165 -50002 FM 824 AND FM 1889 PRELIMINARY SITE EXHIBIT 37 ACRES 1) Bury Partners NI. 121o152s o9a ro� (212)525-0525 eu.y Wainer, -SP. hc. C p,Nght 2212 m¢jiwlnN}(o I n - .I1 STAFF RECOMMENDATION DAM rn Xm 1 rh PLOT1WG SCALE: 1, Ro OR1E Ptl D:Pm 1* mil RIL`■vm1IS0P000( A..+. CRAM RR *1 CALALLEN COMMERCIAL NEIGHBORHOOD DEVELOPMENT OEOCNED 6/: RR4 RETIVEED Olt MN PROJECT ROA 0110116 5 -00000 FM 624 AND FM 1889 PRELIMINARY SITE EXHIBIT 37 ACRES §.., F3 oz� a. Bury +Partners IN Im F4 00. to W Woks II '011 tIR p1gla-ela.n 111114 14 0.11 warn. Nuskr 1.1414 I0001am-Ol Wtl400kllm1l Ordinance amending the Unified Development Code ( "UDC ") upon application by Calallen GP, LLC, on behalf of Lois Lowman, Connie Diane Brown Polk Laing, Herman Bruce Lowman, NRIP, LLC, and Cloudcroft Land Ventures, Inc. ( "Owners "), by changing the UDC Zoning Map in reference to a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park from the "FR" Farm Rural District to the "CG -2" General Commercial District on Tract 1 (29.243 acres) and the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres); amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing for penalties; providing for publication; and declaring an emergency. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the application of Calallen GP, LLC, on behalf of Lois Lowman, Connie Diane Brown Polk Laing, Herman Bruce Lowman, NRIP, LLC, and Cloudcroft Land Ventures, Inc. ( "Owners "), for an amendment to the City of Corpus Christi's UDC and corresponding UDC Zoning Map; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, June 20, 2012, during a meeting of the Planning Commission, and on Tuesday, August 21, 2012, during a meeting of the City Council, during which all interested persons were allowed to appear and be heard; and WHEREAS, the City Council has determined that this amendment would best serve the public health, necessity, convenience and general welfare of the City of Corpus Christi and its citizens. NOW, THERFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Unified Development Code ( "UDC ") of the City of Corpus Christi, Texas ( "City "), is amended by changing the zoning on a 36.896 -acre tract of land out of Lot 4, Block 2, Nueces River Irrigation Park (the "Property "), located on the southeast corner of Northwest Boulevard (FM 624) and FM 1889, from the "FR" Farm Rural District to the "CG -2" General Commercial District on Tract 1 (29.243 acres) and to the "CN -1" Neighborhood Commercial District on Tract 2 (7.653 acres) (Zoning Map Nos. 068050 and 068051). Exhibit "A," which is a description of Tract 1 of the Property, and Exhibit "B," which is a description of Tract 2 of the Property, are both attached to and incorporated in this ordinance by reference as if fully set out herein in their entirety. SECTION 2. The official UDC Zoning Map of the City is amended to reflect the changes made to the UDC by Section 1 of this ordinance. SECTION 3. The UDC and corresponding UDC Zoning Map of the City, made effective July 1, 2011, and as amended from time to time, except as changed by this ordinance, both remain in full force and effect. SECTION 4. To the extent this amendment to the UDC represents a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the UDC, as it is amended by this ordinance. SECTION 5. All ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed. SECTION 6. A violation of this ordinance, or requirements implemented under this ordinance, constitutes an offense punishable as provided in Article 1, Section 1.10.1, and Article 10 of the UDC. SECTION 7. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 8. Upon written request of the Mayor or five Council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed upon first reading as an emergency measure on this day of 2012. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor 0612 -02 Ordinance, Calallen CG, LLC, CG -2 & CN -1 (rev 7- 18 -12) Page 2 of 3 Corpus Christi, Texas day of , 2012 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 The above ordinance was passed by the following vote: Joe Adame Chris N. Adler Kelley Allen Larry Elizondo, Sr. Priscilla G. Leal David Loeb John E. Marez Nelda Martinez Mark Scott Joe Adame Mayor 0612 -02 Ordinance, Calallen CG, LLC, CG -2 & CN -1 (rev 7- 18 -12) Page 3 of 3 Bury +Partners 29.243 ACRES (1,273,822 Sq. Ft.) 101165- 50002ZONING EXHIBIT- 1R.DWG EN NO. 101165 - 50002 -2 JUNE 27, 2012 JOB NO. R0101165-50002.97 FIELD NOTE DESCRIPTION (ZONING CG -2) OF A 29.243 ACRE TRACT OF LAND LOCATED IN NUECES COUNTY, TEXAS, BEING THE REMAINING PORTION OF LOT 4, BLOCK 2, NUECES RIVER IRRIGATION PARK, A SUBDIVISION OF RECORD IN VOLUME A, PAGE 54 OF THE NUECES COUNTY MAP RECORDS; SAID 29.243 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS WITH ALL BEARINGS BEING REFERENCED TO THE NORTH AMERICAN DATUM 1983, TEXAS COORDINATE SYSTEM, SOUTH ZONE; DISTANCES MAY BE CONVERTED TO GRID BY DIVIDING BY A COMBINED SCALE FACTOR OF 1.0000400: BEGINNING, AT A FOUND 5/8 INCH IRON ROD LOCATED IN THE SOUTHERLY RIGHT -OF -WAY LINE OF F.M. 624 (150' R.O.W.), BEING THE NORTHWESTERLY CORNER OF LOT 3, BLOCK 2, OF SAID NUECES RIVER IRRIGATION PARK SUBDIVISION, SAME BEING THE NORTHEASTERLY CORNER OF SAID LOT 4, BLOCK 2 AND HEREOF; SAID BEGINNING POINT HAVING A GRID COORDINATE OF (N = 17,201,555.76, E = 1,257,510.37); THENCE, S 09° 14' 45" W, LEAVING THE SOUTHERLY RIGHT -OF -WAY LINE OF F.M. 624, ALONG THE COMMON BOUNDARY LINE OF SAID LOT 4, BLOCK 2, AND SAID LOT 3, BLOCK 2, A DISTANCE OF 1146.65 FEET TO A POINT FOR THE MOST SOUTH - SOUTHEASTERLY CORNER OF HEREIN DESCRIBED TRACT; THENCE, CROSSING SAID REMAINDER PORTION OF LOT 4, BLOCK 2, THE FOLLOWING COURSES: N 81° 20' 57" E, A DISTANCE OF 79.96 FEET TO A POINT; S 09° 16' 46" W, A DISTANCE OF 80.61 FEET TO A POINT; S 87° 15' 34" W, A DISTANCE OF 684.50 FEET TO A POINT; N 08° 45' 34" E, A DISTANCE OF 215.80 FEET TO A POINT; N 81° 20' 57" W, A DISTANCE OF 315.60 FEET TO A POINT LOCATED IN THE EASTERLY RIGHT -OF -WAY LINE OF F.M. 1889 (120' R.O.W.); EXHIBIT A PAGE 2 OF 3 THENCE, ALONG THE EASTERLY RIGHT -OF -WAY LINE OF F.M. 1889, BEING THE WESTERLY LINE OF SAID LOT 4, BLOCK 2, THE FOLLOWING COURSES: N 10° 30' 40" E, A DISTANCE OF 238.44 FEET TO A SET INCH IRON ROD WITH BPI CAP; NORTHEASTERLY, ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 16,464.15 FEET, A CENTRAL ANGLE OF 00° 58' 56 ", AN ARC LENGTH OF 282.25 FEET AND A CHORD BEARING N 10° 01' 12" E, A DISTANCE OF 282.21 FEET TO A SET 3z INCH IRON ROD WITH BPI CAP; N 09° 31' 44" E, A DISTANCE OF 494.22 FEET TO A SET ' INCH IRON ROD WITH BPI CAP LOCATED AT THE SOUTHEASTERLY CUT -BACK RETURN AT THE INTERSECTION OF F.M. 1889 AND F.M. 624; THENCE, N 52° 31' 49" E, ALONG THE AFOREMENTIONED CUT -BACK RETURN, A DISTANCE OF 89.38 FEET TO A SET 'r'z INCH IRON ROD WITH BPI CAP LOCATED IN THE SOUTHERLY RIGHT -OF -WAY LINE OF F.M. 624; THENCE, S 85° 14' 01" E, ALONG THE SOUTHERLY RIGHT -OF -WAY LINE OF F.M. 624, A DISTANCE OF 997.23 FEET TO THE POINT OF BEGINNING, CONTAINING AN AREA OF 29.243 ACRES (1,273,822 SQ. FT.) OF LAND, MORE OR LESS. Note: Sketch of even date to accompany this Legal Description. "THIS DOCUMENT WAS PREPARED UNDER 22 TAC $663.212, DOES NOT REFLECT THE RESULTS OF AN ON THE GROUND SURVEY, AND IS NOT TO BE USED TO CONVEYED OR ESTABLISH INTERESTS IN REAL PROPERTY EXCEPT THOSE RIGHTS AND INTEREST IMPLIED OR ESTABLISHED BY THE CREATION OR RECONFIGURATION OF THE BOUNDARY OF THE POLITICAL SUBDIVISION FOR WHICH IT WAS PREPARED." � 7/2,r//z HAL B. LANE III REGISTERED PROFESSIONAL LAND SURVEYOR TEXAS REGISTRATION NUMBER 4690 BURY +PARTNERS, INC. 922 ISOM ROAD, SUITE 100 SAN ANTONIO, TEXAS 78216 210/525 -9090 EXHIBIT A PAGE3OF3 INDICATING UNDERGCUND GAS UNE\ "= 200' 0 100 200 300 400 Eve op PA+EiIV+T 1 "l40I� ?07.23' At! CURVE TABLE CURVE DELTA RADIUS LENGTH CHORD DIRECTION CHORD C1 00'58'56" 16344.15 280.19 N10'01'12 "E 280.15 C2 00'58'56" 16464.15 282.25 N10'01'12 "E 282.21 TRACT I 29243 ACRES (1,273,822 SQ. FT.) THE REMAINDER PORTION OF LOT 4, BLOCK 2, NUECES RIVER IRRIGATION PARK SUBDIVISION VOL. A, PG. 54 S67'15'34'W 6&4.50' THE REMAINDER PORTION of LOT 4. BLOCK 2, NUECES RIVER IRRIGATION PARK SUBDIVISION VOL. A. PG. 54 LEGEND - 32.11'W 1074.70' Bury +Partners 922 Isom Road, Suite 100 Seu Antonio, T% 70216 TeL (210)626 -9090 Fax (210)626 -0620 MPS Rob otratuoa Number F -1040 Bury +Parteere-SA, Inc.00opyrigMt 2012 SKETCH TO ACCOMPANY DESCRIPTION OF OF A 29.243 ACRE TRACT OF LAND LOCATED IN NUECES COUNTY, TEXAS, BEING THE REMAINING PORTION OF LOT 4, BLOCK 2, NUECES RIVER IRRIGATION PARK, A SUBDIVISION OF RECORD IN VOLUME A, PAGE 54 OF THE NUECES COUNTY MAP RECORDS; DATE: 06/27/12 I DRAWN BY: MAV • 1/2" IRON ROD FOUND O 1/2" IRON ROD SET ZONING CG -2 CALALLEN, TEXAS FILE:101165- 50002 /ZONING EXHIBIT- 1R.DWG FN NO. 101165- 50002 -2 I PROJECT No. R0101165- 50002.97 EXHIBIT A Bury +Partners 7.653 ACRES (333,354 Sq. Ft.) 101165- 50002ZONING EXHIBIT- 2R.DWG FN NO. 101165- 50002 -3 JUNE 27, 2012 JOB NO. R0101165- 50002.97 FIELD NOTE DESCRIPTION (ZONING CN -1) OF A 7.653 ACRE TRACT OF LAND LOCATED IN NUECES COUNTY, TEXAS, BEING THE REMAINING PORTION OF LOT 4, BLOCK 2, NUECES RIVER IRRIGATION PARK, A SUBDIVISION OF RECORD IN VOLUME A, PAGE 54 OF THE NUECES COUNTY MAP RECORDS; SAID 7.653 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS WITH ALL BEARINGS BEING REFERENCED TO THE NORTH AMERICAN DATUM 1983, TEXAS COORDINATE SYSTEM, SOUTH ZONE; DISTANCES MAY BE CONVERTED TO GRID BY DIVIDING BY A COMBINED SCALE FACTOR OF 1.0000400: COMMENCING, AT A FOUND 5/8 INCH IRON ROD LOCATED IN THE SOUTHERLY RIGHT -OF -WAY LINE OF F.M. 624 (150' R.O.W.), BEING THE NORTHWESTERLY CORNER OF LOT 3, BLOCK 2, OF SAID NUECES RIVER IRRIGATION PARK SUBDIVISION, SAME BEING THE NORTHEASTERLY CORNER OF SAID LOT 4, BLOCK 2 AND HEREOF; THENCE, S 09° 14' 45" W, LEAVING THE SOUTHERLY RIGHT -OF -WAY LINE OF F.M. 624, ALONG THE COMMON BOUNDARY LINE OF SAID LOT 4, BLOCK 2, AND SAID LOT 3, BLOCK 2, A DISTANCE OF 1146.65 FEET TO THE POINT OF BEGINNING, OF HEREIN DESCRIBED TRACT; SAID POINT HAVING A GRID COORDINATE OF (N = 17,200,424.05, E = 1,257,326.15); THENCE, S 09° 14' 45" W, ALONG THE COMMON BOUNDARY LINE OF SAID LOT 4, BLOCK 2, AND SAID LOT 3, BLOCK 2, A DISTANCE OF 374.46 FEET TO A FOUND 5/8 INCH IRON ROD LOCATED IN THE NORTHERLY LINE OF VALLEY VIEW SUBDIVISION, UNIT 2, A SUBDIVISION OF RECORD IN VOLUME 43, PAGE 178 OF SAID NUECES COUNTY MAP RECORDS FOR THE SOUTHEASTERLY CORNER OF SAID LOT 4, BLOCK 2, BEING THE SOUTHWESTERLY CORNER OF SAID LOT 3, BLOCK 2; THENCE, N 84° 32' 11" W, ALONG THE COMMON BOUNDARY LINE OF SAID LOT 4, BLOCK 2, AND SAID VALLEY VIEW SUBDIVISION, UNIT 2, A DISTANCE OF 1074.79 FEET TO A SET INCH IRON ROD WITH BPI CAP LOCATED IN THE EASTERLY RIGHT -OF -WAY LINE OF F.M. 1889 (120' R.O.W.); THENCE, ALONG THE EASTERLY RIGHT -OF -WAY LINE OF F.M. 1889, BEING THE WESTERLY LINE OF SAID LOT 4, BLOCK 2, THE FOLLOWING COURSES: EXHIBIT B PAGE 2 OF 3 N 09° 31' 05" E, A DISTANCE OF 99.56 FEET TO A SET INCH IRON ROD WITH BPI CAP; NORTHEASTERLY, ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 16,344.15 FEET, A CENTRAL ANGLE OF 00° 58' 56 ", AN ARC LENGTH OF 280.19 FEET AND A CHORD BEARING N 10° 01' 12" E, A DISTANCE OF 280.15 FEET TO A SET INCH IRON ROD WITH BPI CAP; N 10° 30' 40" E, A DISTANCE OF 54.60 FEET TO A POINT FOR THE NORTHWESTERLY CORNER OF HEREIN DESCRIBED TRACT; THENCE, CROSSING SAID REMAINDER PORTION OF LOT 4, BLOCK 2, THE FOLLOWING COURSES: S 81° 20' 57" E, A DISTANCE OF 315.60 FEET TO A POINT; S 08° 45' 34" W, A DISTANCE OF 215.80 FEET TO A POINT; N 87° 15' 34" E, A DISTANCE OF 684.50 FEET TO A POINT; N 09° 16' 46" E, A DISTANCE OF 80.61 FEET TO A POINT; S 81° 20' 57" W, A DISTANCE OF 79.96 FEET TO THE POINT OF BEGINNING, CONTAINING AN AREA OF 7.653 ACRES (333,354 SQ. FT.) OF LAND, MORE OR LESS. Note: Sketch of even date to accompany this Legal Description. "THIS DOCUMENT WAS PREPARED UNDER 22 TAC $663.212, DOES NOT REFLECT THE RESULTS OF AN ON THE GROUND SURVEY, AND IS NOT TO BE USED TO CONVEYED OR ESTABLISH INTERESTS IN REAL PROPERTY EXCEPT THOSE RIGHTS AND INTEREST IMPLIED OR ESTABLISHED BY THE CREATION OR RECONFIGURATION OF THE BOUNDARY OF THE POLITICAL SUBDIVISION FOR WHICH IT WAS PREPARED." .;e4;x112X!iill 2' HAL B. LANE III / REGISTERED PROFESSIONAL LAND SURVEYOR TEXAS REGISTRATION NUMBER 4690 BURY +PARTNERS, INC. 922 ISOM ROAD, SUITE 100 SAN ANTONIO, TEXAS 78216 210/525 -9090 EXHIBIT B PAGE3OF3 INDICATING UNDERGDUND GAS UNE\ 'ACM 0 100 200 300 400 1" =200' 58514'01 E 997.23' CURVE TABLE CURVE DELTA RADIUS LENGTH CHORD DIRECTION CHORD C1 00'58'56" 16344.15 280.19 N10'01'12 "E 280.15 C2 00'58'56" 16464.15 282.25 N10'01'12 "E 282.21 THE REMAINDER PORTION OF LOT 4, BLOCK 2, NUECES RIVER IRRIGATION PARK SUBDIVISION VOL, A. PG. 54 581'205 J15.80' TRACT II 7.863 ACRES (333,354 SQ. FT.) THE REMAINDER PORTION OF LOT 4, BLOCK 2, NUECES RIVER JRRIGATION PARK SUBDIVISION VOL. A, PG. 54 N8432'11`Y 0074.79. Bury +Partners 922 IRDm Rod, Salts 100 Ssa Antonio. TX 78219 Tel. (210)525 -9090 Fax (210)625 -0629 IMPS Begetratloa Number R -1048 8ary +Partners -SA, Ine.40CoP7rljht 2012 DATE: 06/27/12 I DRAWN BY: MAV SKETCH TO ACCOMPANY DESCRIPTION OF OF A 7.653 ACRE TRACT OF LAND LOCATED IN NUECES COUNTY, TEXAS, BEING THE REMAINING PORTION OF LOT 4, BLOCK 2, NUECES RIVER IRRIGATION PARK, A SUBDIVISION OF RECORD IN VOLUME A, PAGE 54 OF THE NUECES COUNTY MAP RECORDS; LEGEND • 1/2 " IRON ROD FOUND O 1/2" IRON ROD SET ZONING CN -1 CALALLEN, TEXAS FILE: 101165 -50002 /ZONING EXHIBIT- 2R.DWGI FN NO. 101165- 50002 -3 PROJECT No. R0101165 -- 50002.97 EXHIBIT B AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: July 26, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Mike Culbertson (361) 882 -7448 mculbertson@ccredc.com Type A Grant for Accion Texas Loan Buy Down Program for Fiscal Year 2013 CAPTION: Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ( "Accion ") to provide grant amount up to $400,000 for the interest buy down and grant programs for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Accion Texas Small Business Incentives Agreement. PURPOSE: Approve a Type A Grant for Accion Texas Loan Buy Down Program for Fiscal Year 2013 BACKGROUND AND FINDINGS: Accion Texas Inc. supports small and start -up companies with a loan interest buy -down program when traditional financing is not available. Type A has provided funding since 2004. Accion has assisted over 250 small businesses in the city since the inception of this program. ALTERNATIVES: Enlist local banks to lend to small businesses. To qualify for this program, small businesses must have been turned down for a bank loan. Additionally local banks already participate in the Small Business Administration (SBA) loan program. OTHER CONSIDERATIONS: By assisting small businesses the City is increasing the economic development and growing future jobs. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and assisting small businesses thrive in Corpus Christi. EMERGENCY / NON- EMERGENCY: NON - EMERGENCY DEPARTMENTAL CLEARANCES: FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 20121- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 1,067,358 1,067,358 Encumbered / Expended Amount This item 400,000 400,000 BALANCE 667,358 667,358 Fund(s): Type A Fund Comments: RECOMMENDATION: Staff recommends that the City Council authorize the City Manager to enter into a one year Type A agreement LIST OF SUPPORTING DOCUMENTS: Certification of Funds Small Business Incentive Agreement Accion Business Support Agreement Page 1 of 2 RESOLUTION Resolution approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ( "Accion ") to provide grant amount up to $400,000 for the interest buy down and grant programs for small businesses and authorizing the City Manager, or designee, to execute a Project Support Agreement with the Corpus Christi Business and Job Development Corporation to administer the Accion Texas Small Business Incentives Agreement. WHEREAS, the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from Accion for interest buy down and grant programs for small businesses within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentives agreement for interest buy down and grant programs for small businesses between the Type A Corporation and Accion; WHEREAS, there is a need for a business incentives project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentives agreement for interest buy down and grant programs for small businesses between the Type A Corporation and Accion. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the business incentives agreement for the creation and retention of jobs between the Type A Corporation and Accion that provides for interest buy down and grant programs for small businesses within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentives agreement with Accion, which is attached to this resolution as Exhibit B. This resolution takes effect upon City Council approval on this the day of , 2012. 0020_2_RESOLUTION Accion Business Incentive Agreement 7 -6 -12 Page 2of2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Larry R. Elizondo, Sr. Kelley Allen Priscilla Leal David Loeb John E. Marez Nelda Martinez Mark Scott 0020_2_RESOLUTION Accion Business Incentive Agreement 7 -6 -12 SMALL BUSINESS INCENTIVES AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND ACCION TEXAS, INC. FOR AN INTEREST BUY DOWN PROGRAM FOR SMALL BUSINESSES This Small Businesses Incentives Agreement for an Interest Buy Down Program for Small Businesses ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and ACCION Texas, Inc., a Texas nonprofit corporation ("ACCION Texas"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle 01, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A Guidelines"), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, Section 501.073 of The Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, ACCION Texas is a Texas nonprofit corporation whose principal mission is to provide loans to small business owners lacking access to commercial credit; WHEREAS, ACCION Texas anticipates, over the next twelve months, providing interest buy down to 5.5% for approximately 60 loans with an average value of $25,000 to low and moderate income micro and small business owners in Corpus Christi to generate 20 new permanent full- time jobs; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to ACCION Texas, through this contract with ACCION Texas, to be used by ACCION Texas to buy down the interest on commercial loans to 5.5% interest for small businesses and establish a small business grant program, both of which will result in creation of new full-time permanent jobs in the city of Corpus Christi. Page 1 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and ACCION Texas agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for one year from August 1, 2012, through July 31, 2013. This agreement may be extended at the option of the Corporation for up to two additional one year terms, contingent upon annual appropriation of funds and approval of the City Council. 3, Loan Loss Reserve Program. a. The Corporation has previously provided $75,000 for the Loan Loss Reserve Program. b. The Loan Loss Reserve Program funds will be used to a ow ACCION Texas to leverage additional capital for small business loans. c. "Small business is defined in the Corpus Christi Business & Job Development Corporation Guidelines & Criteria for Granting Business Incentives ("Corporation Guidelines), adopted on May 5, 2003, and amended on November 9, 2010. d. ACCION Texas anticipates that it will have one million dollars available on an annual basis to be lent to qualifying small businesses in Corpus Christi. e. For every $50,000 in loans that ACCI6N Texas provides to a small business in Corpus Christi, ACCI6N Texas shall ensure that the loan will result in the creation of one new full-time permanent job in the city of Corpus Christi. f. Businesses assisted must be located in or locating within the city limits of Corpus Christi, Texas, g. Businesses assisted must be unable to obtain a loan from traditional lending institutions. h. Loan amounts shall be within the range of $5,000 to $75,000. i. ACCION Texas shall provide the Corporation with quarterly reports to identify the loans made, name and address of business receiving loan, jobs created, and other reports as requested by the Corporation. j. ACCI6N Texas shall provide the corporation with quarterly reports of capital available for loans to qualified Corpus Christi small businesses or qualified small businesses locating to Corpus Christi. k. ACCION Texas will provide funds for operations and loan capital to implement and sustain the program. 4. Interest Buy Down Program. a. In consideration for creation and maintenance of new jobs as provided in this Agreement, the Corporation agrees to pay ACCION Texas up to $350,000 for the Page 2 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012 clocx Interest Buy-Down Program as follows: 1. ACCION Texas must first receive a request for a loan from a small business or start-up company that has the ability to produce jobs in the future and is located in Corpus Christi or will be locating in Corpus Christi ("Business"). ii. The request from the applicant must include a notarized affidavit stating that they have applied for normal financing from a bank, or similar lending institution, and have been denied a loan. iii. ACCION Texas shall review the request for a loan from the Business. iv. Upon ACCION Texas approval of a loan, and prior to the closing of the loan, ACCION Texas shall submit Attachment "A" to the Corporation requesting funds to buy down the interest rate from the interest rate allowable per the underwriting criteria to 5.5%. The Corporation authorizes an interest buy down up to 7% of the interest rate to finance the loan. Payment by Corporation shall not exceed $17,500 per loan and shall be calculated using the following formula: (Loan amount x interest rate to buy down to 5.5%) / 12 = N N x number of payments=interest buy down reimbursement to ACCION Texas for business loan. (The number of monthly payments shall not exceed sixty (60).) Example: ($10,000 x 7%) / 12 = 58.33 58.33 x 36 = $2,100 = amount to be reimbursed to ACCION Texas for business loan, v. The Corporation shall provide a response to approve or deny the reimbursement for the Interest Buy Down Program funds to ACCION Texas within 2 business days of receipt of Attachment "A." The Corporation shall reimburse funds within 30 days after evidence of closing the loan is submitted. vi. The total funds available on an annual basis under the Interest Buy Down Program under this agreement are $350,000. b. The loans assisted with the program must be within the range of $5,000 to $75,000. c. This program must result in the creation of one permanent full-time job per every loan of at least $50,000 assisted with the Interest Buy Down Program. ACCION Texas shall ensure that the loan will result in the creation of one new full-time permanent job in the city of Corpus Christi. d. Businesses assisted through this program must be: 1. A start-up or existing small business that is unable to obtain a loan from a traditional financial institution or unable to qualify for the total needed for a business loan through a bank or credit union, in which case ACCION Texas can Page 3 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx loan the remaining amount with the buy down interest rate program in conjunction with the banklcredit union. ii. An existing small business that needs assistance to expand. iii. Any business assisted under the provisions of paragraphs i or il of this subsection, must be: A. Located in or locating in Corpus Christi city limits. B. Current on payment of all sales taxes. C. Current on payment of all ad valorem taxes in the City of Corpus Christi. e. The following projects are ineligible for this program: i. Refinancing of existing loans or debt ii. Businesses located outside the Corpus Christi city limits iii. Home-based businesses located outside the Corpus Christi city limits iv. Loans to existing businesses which are not planning on expanding v. Business retention. f. ACCION Texas may use up to $200,000 to assist start-up and existing small businesses that have little or no access to traditional credit, and up to $150,000 to existing small businesses that wish to expand. g. ACCION Texas shall provide the Corporation with quarterly reports as provided in Attachment "8" to identify the loans made, name and address of the business receiving the loan, jobs created under the Interest Buy Down Program, and other reports as requested by the Corporation. h. ACCION Texas shall provide funds for operations and loan capital to implement and sustain the program. 1. ACCION Texas shall develop loan underwriting criteria and payment terms and conditions for its loan program and provide to the Corporation. j. At the termination of this agreement and after repayment or other conclusion of all loans assisted by Interest Buy Down Program, ACCION Texas will return to the Corporation any unexpended funds remaining from the Loan Loss Reserve Program. 5. Small Business Grant Program. a. In consideration for creation and maintenance of new jobs as provided in this Agreement, the Corporation agrees to pay ACCION Texas up to $50,000 for the Small Business Grant Program as follows: Page 4 of 12 USINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx 1. Grants to loan applicants who do not meet standard underwriting criteria, either because of capacity, cash flow, or credit, who could benefit from a grant to boost their ability to become successful. The grant amount may not exceed $2,500 or 10% of the principal amount requested, whichever is less. ii. Grants to loan applicants who want to use part of loan proceeds to reduce energy consumption or transition into green retail products. The grant amount may not exceed $2,500 or 25% of the upgrades presented in the loan file. Grants to loan applicants who provide services for working families (e.g. both children and adult day care centers) to improve their facilities to be compliant with state/federal standards. The grant amount may not exceed $2,500, iv. Grants to loan applicants that are veteran owned businesses. The grant amount may not exceed $500. v. Working capital grants to holders of existing loans with ACCION Texas. If the loans that have paid routinely on time for a period of 24 months, the maximum grant amount may not exceed $1,000. If the loans have been paid routinely on time for a period of 12 months on time payments, the maximum grant amount may not exceed $500 grant. b. The loans assisted with the program must be within the range of $500 to $25,000. c. This program must result in the creation of one permanent full-time job per every related loan of at least $50,000 assisted through the Interest Buy Down Program. ACCION Texas shall ensure that the loans will result in the creation of one new full-time permanent job in the city of Corpus Christi. d. Businesses assisted through this program must be: i. A start-up or existing small business that is Linable to obtain a loan from a traditional financial institution or unable to qualify for the total needed for a business loan through a bank or credit union, in which case ACCION Texas can loan the remaining amount with the Buy Down interest rate program in conjunction with the bank\credit union. ii. An existing small business that needs assistance to expand. iii. Any business assisted under the provisions of paragraphs i or ii of this subsection, must be: A. Located in or locating in Corpus Christi city limits. B. Current on payment of all sales taxes. C. Current on payment of all ad valorem taxes in the City of Corpus Christi, e. The following projects are ineligible for this program: Page 5 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx 1. Businesses located outside the Corpus Christi city limits Home-based businesses located outside the Corpus Christi city limits iii. Grants to existing businesses which are not planning on expanding f. ACCION Texas shall provide the Corporation with quarterly reports as provided in Attachment "B" to identify the grants made, name and address of the business receiving the grant, jobs created under the related Interest Buy Down Program, and other reports as requested by the Corporation. g. ACCION Texas shall provide funds to implement and sustain the program. h. ACCION Texas shall develop grant award criteria and payment terms and conditions for the grant loan program, and must provide copies of the criteria, terms, and conditions to the Corporation. i. At the termination of this agreement or other conclusion of the Small Business Grant Program, ACCION Texas shall return to the Corporation any unexpended funds remaining from the Small Business Grant Program. 6. Job Creation Qualification. a. In order to count as a created job under this Agreement, the job must pay wages at least as high as the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas industry Profiles report. b. A "job" is defined in the Type A Guidelines as a full-time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. c. ACCION Texas agrees to confirm and document to the Corporation that each job created as a result of funding provided by this Agreement is maintained throughout the term of the loan to the Business. d. ACCION Texas agrees to provide Corporation with a sworn certificate by authorized representative of each shall business assisted under this Agreement certifying the number of full-time permanent employees employed by the small business. e. ACCION Texas shall ensure that the Corporation is allowed reasonable access to personnel records of the small businesses assisted under this Agreement. 7. Buy Local Provision. a. ACCION Texas agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. b. For the purposes of this section, the term “Iocal" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. Page 6 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012 dm: 8. Local Offices. Two staff persons of ACCION Texas offices shall be located in Corporation designated offices or a mutually agreeable location, 9. Representation on ACCION Texas governing board. ACCION Texas agrees to appoint a person designated by the Corporation as a member of ACCION Texas governing board. 10. Warranties. ACCI6N Texas warrants and represents to Corporation the following: a ACCI6N Texas is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. ACCION Texas has the authority to enter into and perform, and will perform, the terms of this Agreement. c. ACCI6N Texas has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid, during the term of this Agreement. d. ACCI6N Texas has received a copy of the Act and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. If an audit determines that the funds were not used for authorized purposes, ACCION Texas agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. f. The parties executing this Agreement on behalf of ACCION Texas are duly authorized to execute this Agreement on behalf of ACCION Texas. g. ACCI6N Texas does not and agrees that it will not knowingly employ an undocumented worker. lf, after receiving payments under this Agreement, ACCION Texas is convicted of a violation under §U.S.C. Section 132440, ACCION Texas shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date ACCION Texas has been notified of the violation. 11. Compliance with Laws. ACCION Texas shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 12. Non-Discrimination. ACCION Texas covenants and agrees that ACCION Texas will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 13. Force Majeure. If the Corporation or ACCION Texas are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Page 7 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012 docx Corporation or ACCION Texas are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 14. Assignment. ACCION Texas may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 15. Indemnity. ACCION Texas covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ("Indemnitees") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with ACCION Texas activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. ACCION Texas must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges of attorneys and alI other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 16. Events of Default. The following events constitute a default of this Agreement: a. Failure of ACCION Texas to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Agreement. b. The Corporation or City determines that any representation or warranty on behalf of ACCI6N Texas contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; c. Any judgment is assessed against ACCION Texas or any attachment or other levy against the property of ACCION Texas with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. ACCION Texas makes an assignment for the benefit of creditors. e. ACCION Texas files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by ACCION Texas become delinquent, and ACCI6N Texas fails to timely and properly follow the legal procedures for protest or contest, g. ACCION Texas changes the general character of business as conducted of he date this Agreement is approved by the Corporation. 17. Notice of Default. Should the Corporation or City determine that ACCION Texas is in default according to the terms of this Agreement, the Corporation or City shall notify ACCION Page 8 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012 docx Texas in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for ACCION Texas to cure the event of default. 18. 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 ACCION Texas, 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. ACCION Texas shall immediately repay all funds paid by Corporation under this Agreement. b. ACCION Texas 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 ACCION Texas under this Agreement. d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 19. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of ACCION Texas' default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time ACCION Texas is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 20. ACCION Texas specifically agrees that Corporation shall only be liable to ACCION Texas for the actual amount of the money grants to be conveyed to ACCION Texas, and shall not be liable to ACCION Texas for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this agreement, being August 1, 2012, through July 31, 2013. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax SMALL BUSINESS INCENTIVE AGREEMENT - AC( Page 9 of 12 N 06 27 2012 docx revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from ACCI0N Texas to be accompanied by all necessary supporting documentation. 21. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: ACCI6N Texas: ACCI6N Texas Attn.: Janie Barrera 2014 Flackberry San Antonio, Texas 78210 Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the foltowing address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c, Notice is effective upon deposit in the United States mail in the manner provided above. 22. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ("Corporation Guidelines"), as amended, are incorporated into this Agreement. 23. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 24. Relationship of Parties. In performing this Agreement, both the Corporation and ACCION Texas will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of Page 10 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - AC ON 06 27 2012 docx either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 25. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 26. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 27. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 28. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and ACCION Texas. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 29. Survival of terms of agreement and obligations of parties. The terms of this agreement and the obligation of the parties relating to the Loan Loss Reserve Program and the Interest Buy Down Program shall survive the termination of this agreement. Corpus Christi Business & Job Development Corporation By: Date: E oy Salazar President Page 11 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012 docx Attest: By Armando Chapa Assistant Secretary ACCION Texas, Inc. By: Date: President and Chief Executive Officer THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on Barrera, President and Chief Executive Officer for A corporation, on behalf of the corporation. Notary Public State of Texas 19 2012, by Janie Texas, Inc., a Texas non-profit ALICE G. GOMEZ Notary Public, State of Texas '7 My Commission Expires August 11, 2015 Page 12 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx ATTACHMENT A — Request for Interest Buy -Down Business Name Business Owner: Business Address: City Corpus Christi, TX Zip Business Phone Type of Business Tax ID # Criteria for Eligibility. Check all that apply Unable to obtain a loan from a traditional financial institution Located in or locating to the Corpus Christi City. Company is a new or expanding business Company is current on their sales tax Company is current on ad valorem taxes in the City of Corpus Christi Unbankable Criteria: Please check one and provide a brief explanation Credit Score Loan to Value Ratio Collateral: Other: Briefly describe purpose of loan and how this loan will create a new job Existing Business. Purpose of the loan is for working capital and to expand.. The funds will help to insure the capital needed to hire an employee. Loan Amount Qualifying Interest Rate Term (months) Buy -Down Request $ 12.5 $ Provide the following information for existing jobs inistrative, cle [nagenat, 'supervisory) Estimatedi hourly Arai per job 40 TOTAL FTE JOBS Provide the following information forjob(s) to be created due to this loan. lassification dministrative, clerical, anageriat,'supervisory) Number of hours per meek Estimated hourly wa per job le 40 TOTAL FTE JOBS ****Median Wage confirmed by Texas Workforce Commission's Texas Industry Profiles report**** ** *Client will also confirm with report prior to actual hire date * * * ** ACCION TEXAS 8 Submitted by Vickie Garcia Title Loan Officer Date Send Attachment "A" to ATTN: Corpus Christi Business & Job Development Corp. Economic Development Office City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469 Fax 361- 880 -3845 ATTACHMENT B - Quarterly Report Corpus Christi Business and Job Development Corporation Please check the box reflecting this report | |August1-Ootober31/DueNmv3CU 0 February 1 —Aph| 30 (Due May 31) O November 1 — January 31 (Due February 28) O May 1 — July 31 (Due August 31) Name of Organization: Acci6n Contact: Janie Barrera Mailing Address: 2014 S. HaokberryStreet City: San Antonio Phone: 210-226-3664 State: TX Fax: 210-533-2940 Loan Loss Reserve Program (list businesses secured with loan loss reserve) Business Receiving Loan Business Type Amount of cJorebsa Loan ted Jobs loan Retai made Defaul Reserve Balance to date B1 Capital leveraged from the Loan Loss Reserve Interest Buy down Program Business Receiving Loan Business Type Address City Amount of Loan Jobs Created Jobs Retained Date loan made Amount Reimbursed by Corporation I certify that the above information is true and correct to the best of my knowledge and that the businesses benefiting from the funds under the contract have met the criteria under the agreement and the Corpus Christi Business and Job Development Corporations Guidelines for granting business incentives. Signed Title Date Send Attachment "B" to ATTN: Corpus Christi Business & Job Development Corp. Economic Development Office City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469 Fax (361)- 880 -3845 B -2 BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Business Incentives Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle 01, Title 12, Texas Local Government Code ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Type A Corporation's Board of Directors ( "Board "); WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007, which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009 -2011 on November 17, 2009; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Accion Texas, Inc. ( "Accion Texas ") has submitted a proposal to the Type A Corporation for a $400,000 grant to provide loans to small business owners lacking access to commercial credit; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund Accion Texas' loan buy down program; and WHEREAS, the Type A Corporation and Accion Texas have executed a small business incentive agreement for an interest buy down and grant program. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Type A Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Type A Corporation is executed to implement the Business Incentive Agreement between the Type A Corporation and Accion Texas related to Accion Texas' interest buy down and grant program helping small businesses in Corpus Christi ( "Business Incentive Agreement "). Page 1 of 3 0020_4_Type A Business Support Agreement - Accion 7 -13 -12 7 -13 -12 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Type A Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Type A Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City Council. 5. Effective Date. The effective date of this Project Service Agreement is August 1, 2012. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Service Agreement automatically. 8. Captions. The captions in this Project Service Agreement are for convenience only and are not a part of this Project Service Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Service Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation Page 2 of 3 0020_4_Type A Business Support Agreement - Accion 7 -13 -12 7 -13 -12 Ronald L. Olson [name] City Manager President Date: Date: Attest Armando Chapa City Secretary Page 3 of 3 0020_4_Type A Business Support Agreement - Accion 7 -13 -12 7 -13 -12 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: August 9, 2012 TO: Ronald L. Olson, City Manager FROM: Margie C. Rose, Assistant City Manager Margier@cctexas.com 361.826.3232 Collective Bargaining Agreement — Corpus Christi Firefighters' Association CAPTION: Motion authorizing the City Manager to enter into a collective bargaining agreement with the Corpus Christi Firefighters' Association for wages, benefits and working conditions based on the Tentative Agreement. PURPOSE: Council authorization for the City Manager to enter into a collective bargaining agreement with the Corpus Christi Firefighters' Association for the period of August 1, 2011 through July 31, 2014. BACKGROUND AND FINDINGS: The City entered into collective bargaining negotiations with the Corpus Christi Firefighters' Association on April 1, 2011 and reached a Tentative Agreement on July 13, 2012. An election ratifying the Contract by the bargaining unit of the Fire Department was held on August 1, 2012. The bargaining unit voted in favor of ratification. The agreement includes the following changes: • 3 year agreement, August 1, 2011 through July 31, 2014; • 0% increase to base salary effective August 1, 2011; • 2% increase to base salary effective August 1, 2012; and • 2% increase to base salary effective August 1, 2013; • Gender neutral changes in Article II, Section 4; Article IV, Section 2(B), Section 4(B), Section 5; Article V, Section 6(1), 6(3); Article VI, Section 3, Section 4; Article VII, Section 1(D), Section 3, Section 5, Section 7; Article IX, Section 11(A); Article X, Section 2(Step 2), (Step 3), (Step 4), (Step 6), Step 6(c), Section 4; Article XII, Section 4; and Article XVI, Part I • 120 month step increase effective August 1, 2012 and August 1, 2013 for Firefighter II and Fire Captain; • Alternative Hiring- Section A is modified to: o eliminate the need for a current Firefighter Basic Certification; o added language to state that an applicant without a current Firefighter Basic Certification prior to entering the academy must pass the Firefighter Basic Certification exam in order successfully complete the academy; o added language to section stating those appointed under Alternative Hiring who have both a Firefighter Basic Certification and a Paramedic Certification would be equal to a starting Firefighter I salary, and will be a Firefighter I except seniority shall not begin to accrue until they are assigned to a station; o Those appointed under Alternative Hiring process with only Paramedic Certification shall be equal to the Cadet 12 months' salary step. They shall be Cadets for all purposes including seniority and benefits until they are assigned to a station, at which time they will become a Firefighter I. • Eliminated Section 5 of Article X- Grievance Procedure; • Article XII Health & Welfare, eliminated current Section 3 and agreed to a new Section 3 as follows: o Effective October 1, 2012, employees and retirees who were previously grandfathered in Plan II, later called Public Safety CitiCare, will be moved to the CitiCare Fire Health Insurance Plan. o The City will pay 100% of the employee's premium and 50% of the premium for dependent coverage towards the CitiCare Fire Health Insurance Plan. o The Association will be allowed to have representation on the Employee Insurance Advisory Committee and on any committee formed to evaluate proposals in response to Requests for Proposal related to negotiated benefits of the bargaining unit. o The City will notify the Association in writing of premium increases with a minimum of 60 calendar days' notice of any change and of health plan changes with a minimum of 30 days' notice of any change. o The City retains the right to negotiate with insurance carriers, third party administrators and their related sub - contractors and /or medical providers to provide insurance coverage and /or administration of the CitiCare Fire Health Insurance Plan. o The City will conduct a bi- annual actuarial study of the GASB Liability and adjust the cumulative recorded OPEB Liability, including past and current, as determined by the bi- annual actuarial study with the first adjustment occurring in fiscal year 2012 -2013. o Plan changes mandated by federal health care legislation will be implemented as required with notification to the Association of such changes. o The following components will be used to calculate the premiums for active employees and retirees under age 65: • Effective October 1, 2012, all employees /retirees who were grandfathered in Plan II, later called Public Safety CitiCare, will be moved to the CitiCare Fire Health Insurance Plan; • Third party administration administrative fees; • Stop loss premiums; • Incurred and paid medical and prescription drug claims (after stop loss adjustments, rebates, subrogation recoveries, coordination of benefit recoveries) of all plan participants (active employees, retirees, and participating dependents), with allowance for adjustment based upon expected benefit plan, enrollment or other changes. • Prorated contribution toward the cost of an onsite primary care clinic (the percentage of members covered under the CitiCare Fire Health Insurance Plan divided by the total covered members under the City's health plans who are eligible to use the clinic times the estimated annual cost of the clinic). • Incurred but not reported (IBNR) claims, as actuarially determined. • The net change in forecasted and prior period catastrophic reserve funding (10% of actuarial projected claims expense). • Assumptions for inflation and trend components used to estimate future claims will incorporate prevailing plan specific, regional, and national trends, as well as the anticipated impact of any mandated benefits, and any other factor(s) determined to impact the overall trend etc. • The Cumulative net fund balance (see page 41) o Recognition, funding and recovery of past, current and future OPEB liabilities o A new plan design structure as stipulated on pages 42- 45 o Retirees- see page 45 o Once a retiree reaches 65 or becomes eligible for Medicare, their insurance will cease under the City's CitiCare Fire Health Insurance Plan. The Medicare eligible retiree and their Medicare eligible dependents will be eligible to participate in the City's fully insured plan offerings for Medicare eligible retirees • On August 1, 2012, the City will make a one -time lump sum payment into the Corpus Christi Firefighter's Health and Benefits Trust Fund in the amount of one hundred thousand dollars ($100,000.00). • On August 1, 2013, the City will make a one -time lump sum payment into the Corpus Christi Firefighter's Health and Benefits Trust Fund in the amount of one hundred thousand dollars ($100,000.00). • Modification of Appendix D (change of dates) • Modification to Appendix E (changes of dates) ALTERNATIVES: Not Applicable OTHER CONSIDERATIONS: The attached Tentative Agreement conforms with Corpus Christi City Council Resolution No. 029542. CONFORMITY TO CITY POLICY: The attached Tentative Agreement conforms with all City and State policies and regulations. EMERGENCY / NON - EMERGENCY: Not Applicable DEPARTMENTAL CLEARANCES: Legal, Human Resources, Fire and Finance FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $2,550,000 $2,550,000 $5,100,000 BALANCE $2,550,000 $2,550,000 $5,100,000 Fund(s): Comments: RECOMMENDATION: Staff recommends the ratification and execution of the collective bargaining agreement with the Corpus Christi Firefighters' Association for wages, benefits and working conditions based on the Tentative Agreement. LIST OF SUPPORTING DOCUMENTS: Tentative Collective Bargaining Agreement JULY 17, 2012 DRAFT OF THE TENTATIVE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND THE CORPUS CHRISTI FIREFIGHTERS' ASSOCIATION August 1, 200 20 t t TO July 31, 20 14 TABLE OF CONTENTS Preamble 4 Article I - Definitions 4 Article II - Recognition and General Provisions 1. Recognitions 5 2. Amendments 6 3. Prevailing Rights 6 4. Rulings and Records of Civil Service Commission 6 Article III - Nondiscrimination 6 Article IV - Working Conditions 1. Work Week and Duty Hours 7 2. Personnel Assigned to 40 Hour Work Week 3. Overtime 4. Call -Backs 5. Illness 6. Holidays and Vacation 7. Personal Leave 8. Uniforms 9. Mileage Allowance 10. Meals 11. Relief 12. Use of Sick Leave in the Event of Death Or Serious Illness in the Immediate Family 13. Assignment Preference Forms 14. Reassignment from Fire Prevention 15. Station Assignment by Seniority 16. Employees Assigned to Specialized Training 7 8 9 9 10 10 11 12 12 12 12 12 12 13 13 Article V - Wages 1. Wages 13 -14 2. Longevity Pay 15 3. Certification Pay 15 4. Assignment Pay 15 5. Working Out -of- Classification 16 6. Education Incentive Pay 16 7. Performance Award 17 8. Salary of Deputy Chief and Assistant Chiefs 17 9. Pay Periods 17 10. Pay and Fiscal Certainty 17 Article VI - Emergency Medical Service 1. Certification Requirement 18 2. Service Requirement 19 2 3. Assistant EMS Director 19 4. Reassignment of Firefighter II EMT /Firefighter II Paramedics 20 5. Voluntary Demotion of Firefighter II EMT /Paramedics 20 6. EMT Certification After Promotion 20 7. Promotion to Firefighter II/Engineer 20 Article VII - Union Activities 1. Payroll Deduction of Dues 20 2. Negotiating Team 21 3. Union Activities 21 4. President's Time Off 22 5. Other Union Functions 22 6. City Facilities 22 7. Access 23 8. Orientation 23 9. Action Outside City Limits 23 10. Notification of Promotion 23 11. Parties to Select Their Own Representatives 23 12. Contract Administration 23 Article VIII - Management Rights 1. Management Functions 23 2. Rules and Regulations 24 3. Noninterference With Personal Lives 24 Article IX - Employee Selection and Promotion 1. Orientation for Firefighter II Drivers and Captains 24 2. Promotional Examinations for Firefighter Hs and Captains 25 3. Other Certification Requirements for Promotion to Rank of Captain 25 4. Appointment of Deputy Chief and Assistant Fire Chiefs 25 5. Probationary Period for New Employees 26 6. Corrections to Entrance or Promotional Examination Questions 26 7. Posting and Administration of Promotional Examinations 26 8. Administration of Entrance Examination 27 9. Promotional Procedures for the Rank of Battalion Chief and Assistant Chief 27 10. Promotional Testing while on Military Leave 28 11. Alternative Hiring 28 Article X - Grievance Procedure Article XV — Reopener Provision 41 1. Section 1 29 2. Grievance Procedure 29 3. Civil Service Appeals 31 4. Appeals from Promotional Bypass 32 5. Duration 32 Article XI - Appeals From Disciplinary Actions 32 Article XII - Health & Welfare 1. Labor - Management Committee 35 2. Identification Cards 35 3. Health Insurance and Life Premiums 35 4. Disability 37 5. Sick Leave and Retirement Pool 38 6. Toxicology Reports 39 7. Mandatory Drug Testing 39 8. Accrual of Vacation Days 39 Article XIII - Legal Procedures 1. Legal Defense 40 Article XIV- Association Health and Benefit Trust 1. Trust Creation 41 2. Indemnification 41 3 Article XVI - Impasse Procedures 41 Article XVII - Duration and Concluding Provisions 1. Duration 43 2. Severability 43 3. Conflict with Civil Sery ice Statute 43 4. Copies of Agreement 43 Concluding Provision 44 Appendices Attachment 1 - Fire Department's Alcohol and Drug Policy 45 Appendix "A" - Dues Deduction Authorization 52 Appendix "B" - Special Assessment Deduction Authorization 53 Appendix "C" - Termination of Regular or Special Dues Deduction Authorization 54 Appendix "D" - Conceptual Payroll Calculations .... 55 Appendix "E" - Calculating Drag -Up Sell Back.......57 Appendix "F" -Call Back Procedures 58 Appendix "G "- Grievance Form 65 PREAMBLE The following agreement is made by and between the City of Corpus Christi, Texas, hereafter referred to as "the City ", and the International Association of Firefighters, Local Union 936, hereinafter referred to as "the Union." The City and the Union agree that the establishment of fair and reasonable compensation and other conditions of employment is a primary purpose of this agreement as well as the promotion of harmonious relationships between the City and the Union. This agreement has been negotiated through the collective bargaining process with the objective of serving the aforementioned purpose and with the further object of fostering effective cooperation between the City and its Firefighters. Now, therefore, in consideration of mutual promises and agreements contained herein, the parties agree as follows: ARTICLE I DEFINITIONS 1. "Accredited college or university," means a college or university whose accreditation is approved by the Texas Higher Education Coordinating Board. 2. "City" means the City of Corpus Christi. 3. "Union" means the International Association of Firefighters, Local Union 936. 4. "Employee" means any sworn, certified, full -time paid employee who regularly serves in a professional fire fighting capacity. The Fire Chief and all civilian non- uniformed employees are excluded from receiving wages or benefits as provided under this contract, and therefore are not included within the definition of employee. 5. "Members" means any employee who is on the membership list of and pays dues to the Union. 6. "Supervisor" means any officer with the rank of Fire Captain or above. 7. "Civil Service Commission" means the Civil Service Commission of the City of Corpus Christi. 8. "Chief of the Department" means the Fire Chief of the City of Corpus Christi. 9. "City Manager" means the City Manager of the City of Corpus Christi. 10. "Chapter 143" means Chapter 143 of the Local Government Code, Vernon's Texas Codes Annotated, 1987. Article 5154c -1 shall mean "Chapter 174 Fire and Police Employee Relations" of the Vernon's Texas Codes Annotated, Local Government Code, Chapter 174. 11. "Cadet" means an individual employed by the Fire Department who is attending the Fire Academy and who has not graduated. 4 12. "Fire academy" means all training necessary to prepare and certify cadets for employment as a firefighter, to include State firefighter certification, and initial State EMT, and Paramedic certification. 13. "Certified EMT" (Emergency Medical Technician) means a firefighter who has a current certification as an Emergency Medical Technician from the appropriate State agency, and who maintains a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 14. "EMT Certification" consists of a current certification as an Emergency Medical Technician from the appropriate State agency, and a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 15. "Certified Paramedic" means a firefighter who has a current certification as an Emergency Medical Technician - Paramedic, or a current license as a Licensed Paramedic, from the appropriate State agency and who maintains a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 16. "Paramedic Certification" consists of a current certification as an Emergency Medical Technician - Paramedic, or a current license as a Licensed Paramedic, from the appropriate State agency and a current authorization to function as a medical care provider by the Corpus Christi Fire Department's Medical Director. 17. "Probationary Period" shall be 18 months from the date of hire, unless a firefighter is unable to obtain initial paramedic certification under Texas law within twelve (12) months from the date of hire. If a firefighter fails to obtain said paramedic certification within twelve months of date of hire, the end of the probationary period will be six (6) months from the date the Employee was examined for the written portion of the paramedic examination (currently the National Registry exam) as long as, the Employee passed on that date and it was within eighteen (18) months of initial date of hire. Failure to obtain initial certification based on the paramedic examination taken within eighteen (18) months from the date of hire shall result in termination as per Article IX Section 5. For example — if an Employee hired on September 1, 2005, passed the written exam taken on December 1, 2006, the probationary period shall be extended to June 1, 2007. ARTICLE II RECOGNITION AND GENERAL PROVISIONS Section 1. Recognitions. The City recognizes the Union as the exclusive bargaining agent for a bargaining unit consisting of each sworn, certified Firefighter in the Fire Department of the City of Corpus Christi. It is understood that this bargaining unit does not include the Chief of the Department and does not include civilian non - uniformed personnel. 5 It is understood that this bargaining unit does not include Cadets enrolled in the Fire academy, but that such persons become members of the bargaining unit at the time they graduate from the Fire academy. Section 2. Amendments. The Union and the City may jointly agree to negotiate possible changes in the contract during its term. Such negotiations shall be set at the convenience of both parties. In order for the contract to be amended both parties must agree upon the amendment. Amendments to the contract must be ratified by appropriate parties. Section 3. Prevailing Rights. All rights, privileges, and working conditions enjoyed by the employees at the present time, which are not specifically mentioned in this agreement, shall remain in full force and effect and shall not be diminished in any manner during the term of this agreement, unless by amendment by mutual consent of the parties. Section 4. Rulings and Records of Civil Service Commission. All rules, opinions, directives, decisions, and orders issued by the Civil Service Commission shall be preserved in written minutes. Such actions need not be copied verbatim in the minutes; it shall be sufficient to accurately summarize such actions. The Chairman- Chairperson or, in his/her absence, the Vice- Chainriai Chairperson of the Commission shall sign the minutes; the signatures of the concurring members on any action shall not be required. The Commission may, if it desires, cause any rules, decisions, directives, or orders to be reduced to writing, apart from the minutes. All such written records of the Commission shall be public records. The City will notify the Union of any items on the Civil Service Commission's agenda that may affect Firefighters and/or the Fire Service. ARTICLE III NONDISCRIMINATION This agreement applies equally to all Firefighters of the City of Corpus Christi, and the parties agree to apply the provisions of this agreement to all Firefighters without discrimination because of race, color, sex, age, religious creed, national origin or Union affiliation. Specifically, the City will not: (1) Interfere with, restrain, or coerce employees in the exercise of their right to organize and bargain collectively as provided by law, or in the exercise of rights provided by this agreement; or encourage or discourage membership in or support of the Union; or interfere with the administration of the Union; (2) Discharge or otherwise discriminate against any employee in regard to tenure of employment or any term or condition of employment on account of membership in or support of the Union, or on account of any lawful Union activity. Specifically, the Union will not: 6 (1) Interfere with, restrain or coerce employees in the exercise of their right to organize and bargain collectively as provided by law, or in the exercise of rights provided by this agreement; (2) Cause or attempt to cause any employee to discriminate against any other employee because of the employee's membership or non - membership in any employee organization, or in any manner prohibited by this agreement. ARTICLE IV WORKING CONDITIONS Section 1. Work Week and Duty Hours. A. The regular work shift for fire fighting personnel assigned to fire suppression or emergency medical services duties shall be based upon a schedule of twenty four (24) hours on and forty eight (48) hours off for a yearly average of fifty four (54) hours per week. For purposes of overtime calculations under the Fair Labor Standards Act, the City shall utilize a twenty seven (27) day work cycle; sick leave, vacation and "Kelly Days" will not be considered as time worked for said overtime calculations. B. The regular duty hours for each shift shall begin at 8:00 a.m. on the day to be worked and shall end at 8:00 a.m. on the following day. For employees required to work the twenty four (24) hours on and forty eight (48) hours off schedule, twelve (12) scheduled working hours shall be counted as one (1) work day for vacation or sick leave purposes. C. Any work required in holdover from a shift as a result of a late return to the station from a fire call or ambulance call, shall be compensable to the nearest fifteen (15) minutes. The preceding sentence shall not apply where the holdover was a result of the employee having been ordered to be on standby or by his /her having been dispatched to a fire as a part of the relief for another crew. In any event, where the holdover period exceeds fifteen (15) minutes the employee shall be compensated for the entire holdover period at the overtime rate. D. If an employee is absent from work for a full calendar quarter, as a result of an on -duty injury, the employee will accrue no `Kelly Days" attributable to that calendar quarter. E. The firefighters understand and agree that the City compensates them in full for all their regularly scheduled hours. Firefighters assigned to fire suppression or emergency medical services receive straight time monetary compensation to work two hundred sixteen (216) hours in each twenty seven (27) day work period. Section 2. Personnel Assigned to 40 Hour Work Week. A. The regular work week for Employees at the rank of Battalion Chief and above, not assigned to 54 hour week, shall be a forty hour work week, with the schedule determined by the Fire Chief. B. The regular work week for personnel below the rank of Battalion Chief assigned to the Fire Prevention or Training Division shall be forty (40) hours per week. The regular weekly schedule will be four (4) ten (10) hour shifts per week. If the staffing level in the Fire 7 Prevention Division falls to 50% or less of the required level for that activity, the Fire Chief, at his /her discretion, may alter the regular weekly schedule of the employees assigned to that activity. In the Training Division, the Fire Chief, at his /her discretion, may alter the regular weekly schedule at any time. A four (4) ten (10) hour day weekly schedule will begin at 8:00 a.m. and will end at 6:30 p.m. with a thirty (30) minute unpaid meal period. C. Employees below the rank of Battalion Chief assigned to the Fire Prevention or Training Division may elect, once each year and with the approval of the Fire Chief, to work a weekly schedule of five (5) eight (8) hour shifts. This election will continue in effect for a year, subject to alteration by the Fire Chief as provided in paragraph B above. D. Employees who work a weekly schedule of four (4) ten (10) hour shifts will accrue and use, on an annual basis, three (3) ten (10) hour personal leave days, as provided in Article IV, Section 7, and seven (7) ten (10) hour holidays. If the employee does not work a weekly schedule of four (4) ten (10) hour shifts for an entire year, the personal leave and holiday hours accrued for that year shall be prorated accordingly. Section 3. Overtime. All employees shall be paid for authorized overtime work at the rate of 1 -1/2 times the regular rate. "Regular rate" and "regular rate of pay" after the date of execution of this agreement means base pay, longevity, education incentive, assignment and certification pay only. Such rate for positions with scheduled work weeks other than forty (40) hours shall be computed on the basis of 173.33 hours per month for payment of cycle pay and holiday pay. All other overtime will be computed on the basis of one hundred and ninety five (195) hours per month. Overtime will be computed only for actual hours worked over the scheduled work week. Compensatory time off equal to the actual hours of overtime may be taken in lieu of overtime pay upon the mutual agreement of the department head and the employee. Overtime shall be computed to the nearest quarter hour. The conceptual formula for the payment herein for overtime work after the date of execution of this agreement is set forth in Appendix D. Overtime at the rate of 1 -1/2 times the regular rate of pay will be paid for work performed on any City holiday as per Section 6 of Article IV. Any off -duty Firefighters who are called back to duty or subpoenaed to give testimony in court about events arising out of their employment shall be compensated at the rate of 1 -1/2 times the Firefighter's regular rate of pay from the time the Firefighter is ordered to report to duty, and shall be paid for the actual time worked in that shift or for a minimum of three (3) hours for any one (1) call-back incident. Compliance Provision. The parties agree and understand that the agreement of the parties to use 173.33 hours per month for cycle and holiday overtime pay and one hundred and ninety -five (195) hours per month for all other overtime pay does not constitute the straight time or regular rate for regularly scheduled hours of work for purposes of this agreement. 8 It is also agreed and understood that to the extent that the City's current or past payroll practice is inconsistent or conflicts with the provisions of the Texas Local Government Code Section 142.0015 and 142.0016, the provisions of this contract or past contract shall control. It is agreed by the parties that should any overtime liability result under the terms of this contract, state law, or the Fair Labor Standards Act that the City is entitled to use any extra overtime premium paid resulting from using overtime rates based on the 173.33 or one hundred and ninety- five (195) hours per month which exceed the overtime premium due calculated for twenty four (24) hour shift employees on the basis of two hundred and sixteen (216) hours worked in a twenty seven (27) day work period to offset such liability, where allowable by applicable law. It is further agreed and understood that to the extent that the methods of determining straight time and overtime pay listed in this agreement are inconsistent or conflict with the provisions of the Texas Local Government Code Section 142.0015, the provisions of this agreement shall control. Should any court rule or hold that the City is not entitled to the full credit provided herein, the City or the Association may reopen negotiations during the term of this contract to address any issue necessary as a result of such ruling, and the duty of each party to bargain under Texas Local Government Code Chapter 174 shall apply. Section 4. Call- backs. A. The parties have agreed that the provisions of the current agreed Call back procedure, Corpus Christi Fire Department SOP No. 101.09 attached hereto and marked "Appendix F ", shall remain in effect during the term of this agreement, unless amended by mutual agreement of the parties (which agreement by the Union may be approved by its Executive Board). B. A committee shall be appointed to develop a revised call back policy, with three (3) representatives appointed by the Chief and three (3) representatives appointed by the Association. In an emergency, which shall be any unexpected happening or event or unforeseen situation or crisis that calls for immediate action, the Chief may bypass employees from the call-back roster who reside outside the city limits. Said by- passed employees shall retain their standing on the roster for other scheduled call- backs. If the Chief or his/her designee inadvertently by- passes an employee in an emergency situation, the employee shall retain his/her standing on the roster until he /she is utilized. The Chief shall call the employee, who is by- passed, to work within a forty five (45) day period. Any employee inadvertently by- passed in an emergency situation shall within a forty five (45) day period be assigned overtime duty either of an emergency or non - emergency nature, for a time period of no less than the amount of time he /she would have worked if he /she had not been bypassed. Section 5. Illness. In the event of illness, the employee shall notify the appropriate Battalion Chief on duty immediately when the employee knows he /she will be absent on account of illness. Any shift employee absent more than two (2) consecutive work shifts, and any forty (40) hour week employee absent more than three (3) consecutive calendar days, shall be required to furnish a certificate of a 9 physician certifying to the illness of the employee. The Chief may at any time, call for a medical certificate if, in his /her judgment, he/she deems it appropriate for a just cause. Section 6. Holidays and Vacation. A. Holidays. Each employee shall receive the following holidays during each fiscal year: (1) New Year's Day (2) Memorial Day (3) Fourth of July (4) Labor Day (5) Thanksgiving Day (6) Christmas Day (7) One holiday to be determined by the City. Firefighters shall have the same number of holidays, or days in lieu thereof, that are granted to other municipal employees. The current practice of adding holidays to vacation time shall be retained. B. Vacation. Firefighters with less than fifteen (15) years of service shall be entitled fifteen (15) working days vacation a year which shall accrue on the basis of twenty six (26) biweekly pay periods per year. Firefighters with fifteen (15) years to twenty nine (29) years of continuous service shall accrue eighteen (18) working days vacation a year, which shall accrue on the basis of twenty six (26) pay periods a year. Firefighters with thirty (30) years of continuous service or more shall accrue twenty one (21) working days of vacation a year which will accrue on the basis of twenty six (26) biweekly pay periods a year. For twenty four (24) hour shift firefighters, twelve (12) scheduled working hours shall be counted as one (1) working day for determining the accrual of vacation leave. For those firefighters scheduled to work forty (40) hours a week, regardless of whether worked in shifts of eight (8) hours, ten (10) hours, or such other shifts as may be authorized under this Agreement, eight (8) hours shall be counted as one (1) working day for determining the accrual of vacation leave. Section 7. Personal Leave. Employees on the payroll as of August 1 of each year, except for cadets who have been with the department for less than twelve (12) months, shall receive three (3) personal leave days with pay. Personal leave days shall be non - cumulative and must be taken during the fiscal year received. Use of these days shall be subject to the operating needs of the department and the requests of the employees. 1. The parties have bargained this provision to provide extra time off, without increasing call back overtime cost to the City. 2. Effective August 1, 2005, the City will agree to allow two (2) additional personal leave days (12 hours of leave equal one day) for a total of five (5) personal leave days in each fiscal 10 year, provided that personal leave days must be taken as follows, rather than as currently taken in conjunction with vacation leave: For Suppression Shift Personnel: Three Shifts as follows: 12 PL /12 PL I2PL /12 PL I2PL /12V For 40 Hour Schedule Personnel: 40 hours of Personal Leave 3. Personal leave must be used with personal leave, except as shown. 4. All other policies and practices not inconsistent with this provision shall continue in effect. There shall be no payment for the accrued personal leave days if an employee terminates prior to using all of such days. Section 8. Uniforms. A. The City shall pay 100% of the cost of the original issue of uniforms to provide every uniformed employee with all required original issue items. The employee shall thereafter replace or repair said required clothing items. B. The City retains the right to establish the style and color of the official uniform and its insignia. If the City changes style and color of the uniform, and such changes cause the previous uniform to be obsolete, it shall pay 100% of the original cost. C. Original issue of uniforms, including patches, to each Firefighter shall be as follows: (1) Cadet, two (2) Class "A" uniforms; (2) One (1) belt and one (1) buckle; (3) Six (6) Class `B" pants and six (6) T- shirts; (4) One (1) sweatshirt; and (5) One (1) Jacket. D. Shoes shall be at the expense of the individual Firefighter. E. The clothing allowance shall continue to be $67.50 per month. F. Standards regarding the inspections, maintenance, and replacement of uniforms as well as, uniform specification shall be established by the Fire Chief subject to the provisions of this Contract. G. Each Firefighter's name, rank, and highest current EMS Certification shall be on all Firefighters shirts as per department policy. These shirts may also change in style and color 11 however, the City shall have no obligation for the T -shirt uniform change, beyond furnishing the 3 T- shirts, (Paragraph B., above, notwithstanding). Section 9. Mileage Allowance. Employees required to use their private automobiles for authorized Fire Department business or as a necessity in changing stations shall be compensated at the rate specified or to be specified in the compensation ordinance of the City, but not less than 32.5 cents per mile. Section 10. Meals. When it appears imminent that Firefighters will be engaged in firefighting duties at the scene of a fire or relocated to another station or engaged in ambulance duties two (2) hours past their normal mealtime, they shall be provided a meal at the City's expense for approximately $6.00 per meal per firefighter, effective upon signing of this agreement, to be reimbursed within two (2) weeks from date of submission of the form approved by the Chiefs office, which may be by fax or other mode of submission. A request by the senior officer present at the scene or approval by the first senior officer in the chain -of- command, if a senior officer is not present at the scene, is necessary before a meal will be provided. Section 11. Relief. Firefighters actively engaged in fire fighting duties at the scene of a fire for a period exceeding three (3) hours will be relieved from duty and given a rest period of at least thirty (30) minutes after any three (3) hours of fire fighting duties. In the event that any Firefighters are required to engage in fire fighting duties at the scene of the fire for a period of eight (8) hours or more, every reasonable effort will be made to relieve such Firefighters to other duties away from the scene. Section 12. Use of Sick Leave in the Event of Death or Serious Illness in the Immediate Family In the event of serious illness or death in the immediate family of the employee, the employee shall be granted sick leave or vacation at the request of the employee. The immediate family, for purposes of this contract, shall be defined to include parents, step - parents, legal guardian, spouse, mother -in -law and father -in -law, children, brothers, sisters, grandparents, and grandchildren. In the event of a death not in the immediate family of an employee, the employee may, upon approval of the Fire Chief, be granted time off to attend funeral services, and such time off shall be taken as vacation leave. Section 13. Assignment Preference Forms. Firefighters may submit Station Assignment Preference Forms, provided by the City, which will be considered by the Fire Chief in making such assignments. Factors used in determining such assignments will include, but will not be limited to, the needs of the Fire Department, the location of the preferred fire station, the residence of the individual, and the employee's seniority. Section 14. Reassignment from Fire Prevention. Any employee who has been assigned to Fire Prevention duties for a period of five (5) consecutive years or more shall be allowed to request reassignment to other duties as long as a vacancy is available. The Fire Marshall is excluded from this Provision. 12 Section 15. Station Assignment by Seniority. Whenever a vacancy occurs in the Fire Department due to retirement, termination, promotion, or demotion, said vacancy may be filled by a seniority bid system as follows: A. Only the five (5) persons with the most seniority per rank per shift shall be eligible to bid. For purposes of this section seniority is defined as time in rank. The five (5) most senior persons per rank who qualify to bid under this section may each choose the fire station to which he /she is presently assigned as his/her selection under this section. An assignment bid must be submitted. B. Only personnel regularly assigned to the shift in which the vacancy occurs may bid. Five (5) Firefighter I1's EMS are eligible to bid for station assignment under this provision, provided that no more than two (2) EMS seniority bids shall apply to any one EMS station. C. Assignment by seniority will be made only to non - ambulance stations for the rank of Firefighter I. D. Assignment by seniority bid will not be made if such an assignment would result in staffing of less than one (1) person per shift per station who is qualified and authorized to use the automatic defibrillation equipment. E. Seniority will not apply relative to move -outs. F. A Firefighter may be assigned based on seniority, only once every three (3) years. G. Vacancies will be posted for two (2) weeks. Employees will have seven (7) days after the two (2) week posting period to submit their assignment bid. The Fire Chief will post assignments within seven (7) days after the bid submission deadline. H. In the event that no bids are received from the five (5) senior employees, the assignment will be made at the Fire Chiefs discretion. The top five (5) employees on the seniority list who have chosen not to bid on a vacancy cannot be assigned to that vacancy. L Firefighters assigned to relief duty will be those most recently promoted to suppression. Section 16. Employees Assigned to Specialized Training It is understood that Firefighter personnel who are regularly assigned to fire suppression and work the fifty four (54) hour work week, may be placed on a forty (40) hour work schedule for the purpose of attaining specialized training. Specialized training includes but is not limited to HAZ- MAT training, rescue training, EMS certification and recertification classes, promotional orientation, fire prevention and/or arson training, as well as attendance to any Fire academy into which the Fire Department has enrolled the firefighter. If a firefighter is required to take leave time to attend specialized training and said time is for the purpose of transitioning to a forty (40) hour work schedule, such transition leave shall not break the cycle for FLSA purposes. ARTICLE V WAGES 13 404+4 MIEEEMMEMMEE 487 EINIE=MMEME MW. 3587 1172. 4-24 4354- 51d13 S —95 5535 t11 -44U4 3. 3855 1297 1395 4345 1574 4675 5256 4231 14 Section LWaues. The basic ra :s within Ll e fire De mruo�uL well as u applicable monthly pay rates obuUhcuofollows: 41ife-1—)rotecticiii or e (II class -at 8/1/2012 8/1/2013 Cadet 3039 111111 111111 UNE Firefighter Brefiti.h^'n Fire Captain Batt. Chief 3883 4618 5217 4055 4709 5369 5990 6261 Cadet PiruDuh^,\ 0mDchu'n Fire Captain U.xChief 111111111 11111111 3099 3960 4710 5321 41 6 4803 3232 4242 4806 5523 6547 5476 6386 4 4902 5633 6677 4515 4912 5731 6843 4618 5217 5990 UAW 4605 4710 5010 5321 5845 6109 6979 In order to qualify for the 120 month step, a Firefighter l must have 120 months of service th the CugDm Christi fire ~Dqarhuuonv including _time anu cadet. and hold a current advanced Structure lire Protection Personnel (ertitication 115)10 the Texas (oinniission on Fire Protection or an EMS certification of EMI-13 or hioher. 15 Section 2. Longevity Pay. Longevity pay shall be $6.00 per month for each complete year of service up to a maximum of fifteen (15) years of service. Thereafter, for each additional year of service, longevity pay shall be $4.00 per month for each year up to a maximum of twenty five (25) years of service. Section 3. Certification Pay. In addition to his/her regular monthly pay, a Firefighter who is certified by the appropriate State agency and meets all certification requirements of this agreement, shall receive certification pay in the amount indicated below, according to the level of his /her certification: Intermediate Fire Certification $20 per month Advanced Fire Certification $25 per month Master's Fire Certification $30 per month Certified EMT $35 per month Certified Paramedic $75 per month Fire Prevention Insp. $35 per month Arson Investigator $75 per month Basic Instructor $35 per month Intermediate Instructor, Advanced Instructor or Master Instructor $75 per month Section 4. Assignment Pay. In addition to his/her regular monthly pay, and certification pay, a Firefighter who is assigned to duty listed below shall receive the amount indicated: Regularly assigned HAZ -MAT -- $50 per month Regularly assigned to Rescue Truck/Station and HAZ -MAT qualified (Effective August 1, 1998) -- $50 per month Certified EMT Assigned to Ambulance -- $50 per month Certified Paramedic Assigned to Ambulance -- $50 per month Effective August 1, 1998, Firefighters currently assigned and who continuously serve for greater than five (5) and less than ten (10) years of service as permanently assigned to EMS shall receive an additional $50.00 assignment pay per month. For greater than ten (10) years of continuous service as permanently assigned to EMS, a Firefighter shall receive an additional $50.00 assignment pay per month for a total of an additional $100 per month as continuous assignment pay. Temporary reassignment pursuant to Article VI Section 6 shall not constitute a break in continuous service. Individuals assigned to a forty (40) hour work week, other than employees assigned on temporary, special or limited duty, will receive the following: 16 0 -3 years $150.00 per mo. 4 -5 years $200.00 per mo. 6 or more years $225.00 per mo. Section 5. Working Out -of- Classification. Any Firefighter who is assigned the duties of a higher classification for an accrued period of four (4) hours or more during any shift shall be paid acting- out -of- classification pay on a monthly basis as follows: Acting Firefighter II $18.00 per shift Acting Captain $24.00 per shift Acting Battalion Chief $36.00 per shift Acting Assistant Fire Chief $48.00 per shift Section 6. Education Incentive Pay. (1) In order to receive payment under this section, semester hours and degrees must be earned from an accredited college or university. Employees shall be eligible for educational incentive pay at the monthly rate of $1.00 per month for each academic semester hour satisfactorily completed provided that such hours are applicable toward a degree. In no event will more than $71.00 per month be paid without successful completion of the requirements and the receipt of an Associate Degree. If the employee is attending an upper level college, he/she may meet this requirement by filing a copy of his /her certified degree plan with the Director of Human Resources, noting his /her expressed intent to obtain a Bachelor's Degree. All approved hours above the Associate Degree will be eligible for educational pay at this rate up to an additional $53.00 per month or a combined total of $124.00 per month. Successful completion of the requirements and receipt of a Bachelor's Degree will qualify the employee for a maximum of $135.00 per month. (2) Approved hours above the Bachelor's Degree applicable toward a Master's Degree will be eligible for educational incentive pay at the same rate up to an additional $20.00 per month. Successful completion of the Master's Degree will qualify the employee for an additional $16.00 per month for a maximum combined total of an additional $36.00 per month on a Master's Degree. The addition of other compensable areas of study under this section shall not expand the practice of payment of expenses or provision of textbooks or materials to such other areas of study as presently provided for an Associate Degree in Applied Science for Fire Science at Del Mar College. (3) No probationary employee shall be eligible for educational incentive pay until after he /she has successfully passed his/her probationary period. (4) Performance award and acting -out of- classification pay under this Article shall not be considered as a component of salary or compensation for purposes of drag up pay or leave 17 (5) sell back or overtime by virtue of being moved to this Article from other articles in this or previous agreements, and no such change has been negotiated. Education incentive pay under this Article shall not be considered as a component of salary or compensation for purposes of drag up pay or leave sell back by virtue of being moved to this Article from other articles in this or previous agreements, and no such change has been negotiated. Section 7. Performance Award. Every November, each firefighter, excluding those on probationary status, shall receive a performance award in a lump sum payment of $150.00. Section 8. Salary of Deputy Chief and Assistant Chiefs. The position of Deputy Chief and the positions of Assistant Chiefs shall be compensated under the City's Managerial Pay Plan. Section 9. Pay Periods. Effective January 1, 2006, wages and other compensation specifically mentioned in this agreement, excluding overtime, shall be paid on the basis of twenty six (26) pay periods per year, paid every other week, unless specifically mentioned otherwise in the agreement. Section 10. Pay and Fiscal Certainty. A. The City and the Union agree that this agreement should set forth clearly and resolve any issues concerning the proper calculation of pay and other economic benefits. The City and the Union agree that the pay formulas in Attachment D & E of this Agreement reflect the correct standard for future payment. B. The Union agrees that the City's past pay practices are in compliance with the prior contract. C. All retroactive pay due for FY 03 -04 and FY 04 -05 under this Agreement will be paid using prior payroll payment practices. D. The City and the Union recognize that individual Association members have the right to assert a pay claim or grievance for past pay periods, subject to the City's legal and contractual defenses. However, it is also agreed that all pay claims which accrued and have not been filed by individual Association members prior to ratification of this Agreement shall be barred. This provides a reasonable opportunity for the assertion of any valid claims, and will allow the City Council to know the extent of any contingent liabilities when it takes action on this Agreement. E. The use and meaning of the terms "regular rate" and `regular rate of pay" in this Agreement pre -date the application of the FLSA to the employees under this agreement. It is agreed that the method of payment of overtime pay, drag up pay and vacation sell back shall be in accordance with this agreement. The parties agree that any contrary state law or local ordinance, including Texas Local Government Code Section 142.0015 is superseded. 18 F. By the inclusion of FLSA terminology in this agreement, neither party waives exemptions, credits or entitlements which otherwise apply. G. It is further understood and agreed that the City is entitled to use and does use the partial exemption under the Fair Labor Standards Act, 29 U.S.C. 207(k) as per the ruling in Collins, et al v. City of Corpus Christi, Civil Action No. C -00 -066, United States District Court for the Southern District of Texas, Corpus Christi Division. The parties also recognize that any release of FLSA claims must be in accordance with applicable law. ARTICLE VI EMERGENCY MEDICAL SERVICE Section 1. Certification Requirement. All Firefighters hired after May, 1985, must be certified Paramedics within eighteen (18) months from date of employment and must maintain Paramedic certification for a minimum of eight (8) full years as a condition of employment. Failure to maintain said certification shall result in termination. Any time period without certification will not count towards the minimum eight (8) full years requirement. Any Firefighter who has not met the minimum eight (8) full years requirement as a certified Paramedic because of loss of certification shall be granted either twelve (12) calendar months from the date she/he lost certification or, if the Firefighter enrolls, attends, and completes the next regionally available educational class that will assist him/her in regaining the Paramedic certification, ten (10) months from the date the class begins, whichever is longer, to regain Paramedic certification. If a Firefighter is unable to obtain Paramedic certification within the time granted, she/he will be terminated in accordance with Section 1 of this Article. Any Firefighter who is not a certified EMT or certified Paramedic shall lose EMT or Paramedic certification pay ninety (90) calendar days after notification of the loss of certification. If authorization to function as a medical care provider is suspended by the Fire Department's Medical Director, the Fire Chief will provide to the Firefighter in writing the necessary steps required to regain certification. If a Firefighter carrying the rank of Firefighter II EMS has failed to maintain Paramedic certification, she/he will be temporarily reassigned to Firefighter I duties immediately upon loss of certification. The Firefighter shall be granted ninety (90) calendar days from the date she/he lost certification to obtain certification. If at the end of this ninety (90) calendar -day period, the Firefighter has not obtained certification she/he will be demoted to the rank of Firefighter I. Any previous time in rank shall stand and the Firefighter shall be eligible for promotion to the rank of Firefighter II EMS after successfully completing the requirements of a certified Paramedic. If a Firefighter hired before May, 1985, carrying the rank of Firefighter II EMS and who has an EMT certification, has failed to maintain that EMT certification, she/he will be temporarily reassigned to Firefighter I duties immediately upon loss of certification. The Firefighter shall be granted ninety (90) calendar days from the date she/he lost certification, to obtain certification. If at the end of this ninety (90) calendar -day period, the Firefighter has not obtained certification she/he will be demoted to the rank of Firefighter I. Any previous time in rank shall stand and the 19 Firefighter shall be eligible for promotion to the rank of Firefighter II EMS after successfully completing the requirements of a certified Paramedic. The Fire Department will make available training materials or tutorial assistance up to, but not exceeding an equivalent of forty (40) hours, upon request of the Firefighter who has not met the recertification requirements. Such tutorial or training assistance shall be based upon the recommendations of the EMS training staff and the Fire Department's Medical Director. This tutorial or training assistance may require the Firefighter to be reassigned to a forty (40) hour work week to complete the training. The Department will assume no responsibility for time and expense incurred should the Firefighter desire training other than that offered by the Fire Department. Section 2. Service Requirement. All Firefighters hired after May, 1985, may be required to serve a minimum of five (5) years in the Emergency Medical Service during the eight (8) year period of paramedic certification requirement set out in Section 1 above. All Firefighters hired on or after January 1, 2006 must maintain certification at the level of EMT — Basic (or higher, whenever a higher certification is required in other provisions of this Agreement) while employed in the Fire Department. Failure to maintain said certification or to obtain re- certification as provided in Section 1 above, shall result in termination. Section 3. Assistant EMS Director. Effective August 1, 1999, any vacancy occurring in the position of Assistant E.M.S. Director shall be filled from the rank of Captain and shall be a Battalion Chief with all the rights and benefits of a Battalion Chief. This position shall be by appointment of the Fire Chief from Firefighters within the rank of Battalion Chief or Captain who are eligible to take the Battalion Chief Exam and are certified and qualified to serve as paramedics under this Agreement. It is understood that any individual appointed to this position, serves at the discretion of the Fire Chief, but if removed from this assignment, shall be reassigned at the same rank and/or position that he /she held when originally appointed, or achieved during the firefighter's tenure in the position as Assistant EMS Director. The person currently assigned, and for so long as he /she holds this position, shall retain Civil Service status, maintain and accrue vacation, sick leave, personal leave, and seniority; and receive longevity pay. The Assistant EMS Director shall continue to participate in the City's health and life insurance programs, and receive $150.00 per month in lieu of paramedic certification pay. It is understood that any individual appointed to this position, serves at the discretion of the Fire Chief, but if removed from this assignment, shall be reassigned at the same Civil Service Classification and/or position that he /she held when originally appointed, or achieved during tenure in the position as Assistant EMS Director. With the exception of the Assistant EMS Director, Emergency Medical Service supervisory officers assigned by the Chief shall receive $150 per month paramedic certification pay in lieu of the amount provided for in Article V, Section 3 of this Agreement. Section 4. Reassignment of Firefighter II EMT /Firefighter II Paramedics. Any Firefighter II EMT/Firefighter II Paramedic who is regularly assigned to EMS shall be entitled to receive, but only upon his /her request, temporary reassignment to Firefighter duties for as 20 much as two (2) pay periods in any six (6) month period; provided however, that during any pay period that such employee is performing such voluntary reassignment he/she shall be paid only at the maximum Firefighter I rate for Firefighter I duties performed during said period of reassignment. However, it is agreed that such reassigned employee will continue to hold his /her Firefighter II rank, and will be entitled to all other rights and privileges pertaining thereof. The scheduling of temporary reassignment shall be made at the reasonable discretion of the Fire Chief. Section 5. Voluntary Demotion of Firefighter II EMT/Paramedics. After five (5) years of actual ambulance service duty, which must be continuous, as a Firefighter II EMT/Firefighter II Paramedic hired prior to May 1985, the employee shall be granted upon request a voluntary demotion to Firefighter I, and will not be further required to maintain EMT certification. Section 6. EMT Certification After Promotion. Firefighters and Firefighter II EMT/Firefighter II Paramedics, hired prior to May 1985, who are promoted to Firefighter II - Drivers will not be required to maintain their EMT certification after promotion. Section 7. Promotion to Firefighter IllEngineer. All Firefighters hired after July 31, 1996 must serve either a minimum of two (2) consecutive years as a Firefighter Il/EMS on the ambulance, or eight (8) consecutive years as a Firefighter I, prior to becoming eligible to take the examination for promotion to Firefighter Il/Engineer. ARTICLE VII UNION ACTIVITIES Section 1. Payroll Deduction of Dues. A. The Union shall supply the City with all necessary papers and information for payroll deduction of dues and assessments. Such dues or assessments will be deducted in the amount specifically authorized by the individual employee and in accordance with the by- laws of the Union. B. The City agrees to deduct dues upon receipt from the Union of a "Dues Deduction Card" voluntarily and individually authorized, signed, and dated by each member of the Union. This authorization shall remain in full force and effect for the term of this agreement or until terminated by either the employee or the Union. Such "Dues Deduction Card" is found in Appendix "A" and is incorporated by reference into this agreement. The City shall begin such deductions on the following pay period after receipt of the "Dues Deduction Card." C. The City agrees to deduct special assessments upon receipt from the Union of a "Special Assessment Deduction Card" which is found in Appendix `B" and is incorporated by reference into this agreement. The City shall deduct such special assessment on the 21 following pay period after receipt of the "Special Assessment Deduction Card." The Union agrees to defray the City's Administrative cost for such special assessment in the amount of $50 per special assessment, to be invoiced by the City. I D. At any time a member of the Union desires to withdraw his /her membership, he/she may voluntarily and individually do so. Such action will be initiated through a "Termination of Dues Deduction Card" voluntarily and individually signed by the member of the Union and furnished by the City. Such "Termination of Dues Deduction Card" is found in Appendix "C" and is incorporated by reference into this agreement. The City shall terminate deduction of such dues on the following pay period after receipt of the "Termination of Dues Deduction Card." A copy of the Termination of Dues Deduction Card will be forwarded to the Union's Secretary- Treasurer. E. The City will be obligated to remit to the Union only those sums deducted as dues and assessments from the Union member's paycheck and will not be liable for damages to the Union, any individual employee; or other person for failure to deduct any authorized sum for any reason. Section 2. Negotiating Team. Four (4) members of the Union negotiating team (or a number equal to the size of the City's negotiating team, if larger) shall be allowed time off with pay in order to attend negotiating meetings mutually set by the employer and the Union when such meetings occur during the regularly scheduled working time of the employees. If a team member is on their regular day off, the employee shall receive time off in an amount equal to the number of hours the team member attended the negotiating meeting up to a maximum of ten hours time off per negotiating meeting. The number of hours granted under this section is not considered hours worked for purposes of the F.L.S.A. and will not be counted towards any overtime calculation provided for in this contract or in the F.L.S.A. The time off must be scheduled and approved by the Fire Chief or designee at least one shift before it is used. All negotiations shall be conducted exclusively between the designated bargaining representatives of the City and the Union. Neither party shall make any effort to bypass such representatives of the other party during collective bargaining for a new contract unless an impasse exists as defined in Section 174.152 of the Texas Local Government Code, V.T.C.A. Every effort will be made to begin negotiations sixty (60) days prior to the end of the contract term specified in Article XVI, Section 1 of this Agreement. Negotiations will be considered at impasse if said negotiations extend beyond that term unless extended by Agreement. Section 3. Union Activities. The Union may schedule small committee meetings pertinent to Union business on Fire Department property insofar as such meetings are not disruptive of the duties of the employees, or the efficient operation of the Fire Department, provided however, that permission for such meeting shall be obtained in advance from the Fire Chief or his /her designated representative. Union members or employees may conduct voluntary fund raising activities during working time, at their work location so long as the conduct of such business does not interfere with their duties as employees and advance permission of the Fire Chief for such volunteer work has been sought by 22 the sponsoring organization, and granted, and the Chief has given permission to the Union for such activity. Section 4. President's Time Off. In December of each year, the Association President may choose to be relieved of duty for the following year to perform Association duties. Written notice of the Association President's intent must be sent to the Fire Chief by the 20th of December. On August 1 of each year, if the Association President has chosen to be relieved of duty, each member of the bargaining unit shall contribute four (4) hours of personal leave to offset the Association President's base pay. The City shall continue to pay all benefits the Association President is entitled to receive. The period during which the Association President is relieved of duty shall not constitute a break in service. In the event of an emergency, the Chief may order the Association President to report for duty as assigned by the Chief. Section 5. Other Union Functions. No Firefighter shall be refused reasonable leave of absence without pay, provided that a sufficient number of employees to carry out the normal functions of the department shall be provided, for the purpose of attending any fire school, conventions, or meetings the purpose of which is to secure a more efficient department and better working conditions for the personnel thereof. The President of the Union and three (3) elected delegates shall each be allowed three (3) shifts off with pay each year of the contract term to attend the Union's state convention and a like number of shifts off with pay to attend the national convention. In addition, the President of the Union or his/her designee if the President is not available, will be allowed to attend, with pay, eight (8) regularly scheduled Union meetings per calendar year, not to exceed four (4) hours per meeting. In addition, two (2) pension trustees will be allowed two (2) shifts each with pay per calendar year to attend the state pension seminar approved by the Fire Chief. Travel expenses, food, lodging, etc. shall not be borne by the City. Any delegate leave days provided for in this paragraph and not used for attendance at the Union's national and state conventions, may, upon the Union's request, be used for attendance at seminars or training sessions during each year of the contract term. In addition to the delegate leave days granted by the preceding paragraph, if any Firefighter is elected to a position on the Union's state or national executive board, that Firefighter shall be allowed three (3) shifts off with pay to attend the state and national conventions. Section 6. City Facilities. The City facilities which are available to private organizations on a rental basis shall be made available to the Union under the same conditions that they are made available to other nonprofit organizations. Section 7. Access. Subject to prior notification to and approval from the Fire Chief or next highest ranking officer, the Union President or his/her appointee shall have the right to visit the premises of the Fire Department for purposes of administering this agreement. Visits shall be conducted in a manner and 23 at a time as not to interfere with the functions of the department. Such approval of the Chief shall not unreasonably be withheld. Section 8. Orientation. Neither the City nor the Union will attempt to use Fire Department academy training to solicit or discourage Union membership. During any portion of the Fire Department academy training devoted to explanation of Firefighters' rights and duties under this contract, a representative designated by the President of the Union shall assist the City's representative in explaining the contract. Section 9. Action Outside City Limits. A Firefighter who is ordered outside the City limits on any mission of the Fire Department shall be deemed to be in the line and in the course of his/her duty as a paid Firefighter and public safety officer for all purposes. Section 10. Notification of Promotion. Any employee promoted to a higher classification shall be notified in writing within twenty (20) days from the date of promotion. Section 11. Parties to Select Their Own Representatives. Both the City and the Union shall be entitled to select persons to represent them as members of the negotiating team, and to represent them on grievance and arbitration matters and in other proceedings; provided, however, that the City shall not select any employee of the Fire Department holding a rank below Assistant Chief, and the Union shall not select any employee of the Fire Department holding a rank above Battalion Chief. Section 12. Contract Administration. On duty training and/or orientation for all employees within the bargaining unit shall be conducted to inform such employees of their rights and obligations under this agreement. ARTICLE VIII MANAGEMENT RIGHTS Section 1. Management Functions. The Union recognizes that the City has statutory and Charter rights and obligations in matters relating to municipal operations. The City and the Chief shall retain all rights and authority to which by law they are entitled. It is understood by the parties that every duty connected with operations enumerated in job descriptions is not always specifically described, and the job descriptions are simply general guideline descriptions and are not specific descriptions of all duties which employees are required to perform. Except as provided in this agreement, the City retains the right to operate and manage its affairs in all respects. 24 It is understood that the City has the right to establish departmental rules of procedure; to discipline or discharge for cause; to determine work schedules and assignments, and to establish methods and processes by which work is to be performed, all subject to applicable statutes, the City Charter, Standard Instructions, rules and regulations and standing orders, and this contract. The City reserves the right to use civilians in the Fire Department to perform duties which do not require a certified Firefighter. The scope of such duties may include EMS administration, communications, informational systems, records, clerical support, and maintenance. Civilians performing such duties are not subject to the terms of this agreement. The City will be allowed a reasonable time to train civilians to assume these duties. Section 2. Rules and Regulations. The City recognizes the responsibility of management to reduce Standard Instructions, rules and regulations and standing orders to writing and to maintain the same at each station in order to achieve a uniform interpretation and application of such directives and regulations, within the contract year. Section 3. Noninterference With Personal Lives. A. The City will not publish, make or enforce any regulations or directives which will interfere with the personal lives or off -duty activities of employees, except to the extent that such regulations are related to their employment. This section will not supersede the rules and regulations of the Civil Service Commission. B. Firefighters may reside outside the city limits. Firefighters shall, however, reside in such a location as to be able to reach City Hall within sixty (60) minutes by traveling in an automobile at posted speeds in ordinary weekday traffic. ARTICLE IX EMPLOYEE SELECTION AND PROMOTION Section 1. Orientation for Firefighter II Drivers and Captains. All new Firefighter II Drivers and Captains who are promoted to these ranks shall be given a thorough orientation consisting of the responsibilities accompanying such ranking. This orientation shall include, but not be limited to: hydraulics, driving laws, safety procedures, responsibilities of the job, leadership in the fire service, and report writing (including all forms used within the Fire Department). The orientation shall be conducted by members of the Training staff and shall not be part of the promotional procedure nor shall be construed to be part of the final promotional grade. The orientation shall be conducted prior to the assignment of the newly promoted employees to their new positions. Attendance at such orientation shall not break a cycle for FLSA overtime pay purposes. Section 2. Promotional Examinations for Firefighter Its and Captains. A. Examinations for Firefighter Il and Captains shall be conducted entirely as provided by Chapter 143 and the grading methods and establishment of the eligibility roster shall also 25 be conducted entirely as provided by Chapter 143, except as provided in Article IX of this contract. Separate exams for Firefighter II Assigned Truck Driver and Firefighter II- Assigned Emergency Medical Service shall be administered. B. All Firefighters hired after July 31, 1996, will be required to serve a minimum of two (2) consecutive years as a Firefighter II/EMS on the ambulance or eight (8) consecutive years as a Firefighter I, prior to becoming eligible to take the examination for promotion to Firefighter II/Engineer. C. All Firefighters must serve either a minimum of two (2) consecutive years as a FFII/EMS or FFII/Eng prior to becoming eligible to take the examination for promotion to Captain. D. Only those Firefighters with paramedic certification will be eligible to take the Firefighter II- Assigned Emergency Medical Service exam and be promoted accordingly. The Firefighter II- Assigned Emergency Medical Service roster shall be used for Emergency Medical Services only. Section 3. Other Certification Requirements for Promotion To Rank of Captain. All Firefighters hired prior to May 2000, who have ever served as a Firefighter II for more than two (2) consecutive years and who have not terminated their employment with the department at any time, will be eligible to take the Captains exam without paramedic certification requirements. This requirement does not relieve the firefighter of any other EMS certification requirement described in this agreement. All Firefighters hired after May 2000, who have ever served as a Firefighter II for more than two (2) consecutive years, and who have not terminated their employment with the department at any time, must be certified paramedics to be eligible to take the Captains exam. Once promoted to the classification of Captain, said employees must maintain the paramedic certification for one (1) additional required recertification, or four (4) years, which ever is longer. Failure to maintain said certification shall be grounds for disciplinary action up to and including demotion or indefinite suspension. Section 4. Appointment of the Deputy Chief and Assistant Fire Chiefs. A. Promotion to the classification of Deputy Chief shall be exempt from competitive examination, and, instead, shall be made by appointment by the Chief, at the Chief's discretion. Promotion to the classification of Deputy Chief shall be made from the classifications of Assistant Fire Chief or Battalion Chief. The change in this section of the title of First Assistant Chief to Deputy Chief is only a change in the title of the classification and it is agreed that no vacancy, new, or additional positions is created in the Fire Department nor is such intended. B. Beginning August 1, 1990, the first two (2) position vacancies in the Assistant Chief rank shall be designated as exempt from competitive examination and, instead, shall be made by appointment by the Chief, at the Chief's discretion. These positions shall be called Assistant Chief A and Assistant Chief B and shall henceforth be filled by appointment of the Chief. Promotion into these positions shall be made from the classification of Battalion Chief. The 26 remaining Assistant Chief positions shall be filled by competitive examination as described in Article IX, Section 9 of this contract. It is understood and agreed that the inclusion of this provision in the agreement is not a waiver by the City, the Chief or the Association of any interpretation of the prior agreement. Further, the parties understand and agree that the continued inclusion of this section of the contract does not prevent either party from asserting a claim alleging a violation of this section nor does the inclusion prevent a defense to such claim. Section 5. Probationary Period for New Employees. A new employee in the Fire Department shall serve a probationary period of eighteen (18) months which shall begin with the date of first employment unless extended to obtain initial Paramedic Certification as per Article I #16. During the probationary period, such employee may be discharged at the discretion of the Chief, without appeal to arbitration, to the Commission, or to any court. All Cadets shall become immediately eligible for participation in the Corpus Christi Local Firefighters' Pension System as of the original date of employment. When the employees have completed the probationary period, they shall automatically become a full- fledged Civil Service employee and shall have full Civil Service protection as specified by Chapter 143 and this contract. In addition to insurance, sick leave, vacation, and holidays, it is understood that upon graduation from the Academy or being turned to duty and becoming a Firefighter I, Firefighters shall receive the following: (a) 100% of the uniform allowance, (b) longevity pay, (c) Firefighter Basic certification pay, and EMT Certification pay, if certified, (d) Paramedic Certification pay upon approval of the Corpus Christi Fire Department Medical Director and (e) supplemental insurance. After completion of the probationary period Firefighters will receive 100% of all benefits specified in this contract to which they are entitled. For promotional purposes, the effective date of the promotion indicated on the official City document (Form 12) will be used to determine the classification of Firefighter to meet eligibility requirements. Section 6. Corrections to Entrance or Promotional Examination Questions. The Civil Service Director shall have authority within five (5) days of the date of the examination to recommend to the Civil Service Commission changes to entrance or promotional examination questions where clerical errors in compiling the test questions have been discovered, or where a question arises as to general accuracy. This does not restrict the Firefighter from appealing questions to the Civil Service Commission. Section 7. Posting and Administration of Promotional Examinations. A listing of materials from which promotional examination questions are taken shall be posted annually each January for examinations administered within the one year period beginning the following April. Such materials shall be available at least thirty (30) days prior to the examination date. 27 Section 8. Administration of Entrance Examination. Entrance examinations may be administered at any time to qualified groups or individual applicants consistent with public posting requirements of Chapter 143. All applicants passing the written examination, oral examination, psychological examination, medical examination, strength and endurance examination, and any other exams deemed necessary by the Chief shall be ranked upon the eligibility list for Cadet based upon composite scores posted simultaneously. Such eligibility list shall be valid for a period of twelve (12) continuous calendar months from the date of original posting. Applicants who fail will be required to wait one (1) year before taking the test again. Section 9. Promotional Procedures for the Rank of Battalion Chief and Assistant Chief. Captains shall have two (2) continuous years in rank before becoming eligible to compete for a Battalion Chief vacancy. The classifications of Battalion Chief and Assistant Chief not appointed at the discretion of the Chief shall be filled by a promotional examination procedure consisting of two (2) parts as follows: A. Written Examination. (1) The written examination shall consist of questions relating to the specific duties of the position to be filled. The written examination shall have no specific failing score but will provide a ranking of participants from high to low score. In the event that written examination scores are the same, the earliest time for submitting the examination form to the test administrator for grading shall determine respective standings. Only the highest ten (10) participants shall be allowed to continue on to the next phase of the examination process (Assessment Center examination). (2) The posting of the results of the written examination shall contain only the names of the top ten (10) scoring applicants, in alphabetical order. Individual scores will be given to the employees but will not be posted. B. Assessment Center. (1) The Assessment Center shall consist of: six (6) persons from outside the Fire Department holding administrative level positions in a Fire Department operating in a city of 100,000 or more population shall be selected to serve as assessors. At least two (2) of the Fire Administrators must be from outside the state of Texas. All Assessors shall be chosen by the Director of Human Resources. Both the Chief and the Association President or his/her representative must approve the selections and must keep the list confidential. The Association member appointed to approve the list must not be a candidate for the promotional exam for which the list of assessors has been developed. If any individual on the list is not approved, a reason for the failure to approve and an alternate name must be submitted to the Director of Human Resources within five (5) days. No more than two (2) names can be struck from the list by either the Chief or the Association. (2) The Assessment Center Examination date will be posted on the same day the written test announcement is posted. A brief explanation of the center exercises shall be posted at least three (3) days prior to the written test. Assessors shall be trained for a minimum of eight (8) hours in the methods to be used in administering the test. All candidates will be given the opportunity to attend a classroom orientation concerning the assessment center process. The 28 (3) orientation will include general information concerning the exercises they will be taking during the assessment process. The assessment center process shall include at least three (3) exercises. Feedback shall be provided to each candidate in a "feedback" session by the assessment center coordinators. The purpose of this session will be to provide each candidate with his score, what areas he excelled in, what areas he did poorly in, and what he might do to improve his performance in the future. (4) The results of the Assessment Center examination shall be binding for one (1) year and, with the exception of fraud, shall not be appealable to the Civil Service Commission or to arbitration. C. Eligibility Lists. (1) Within forty eight (48) hours, excluding weekends and holidays, of the conclusion of the entire assessment center process an eligibility list shall be prepared and posted. Each eligibility list shall reflect the ranking of all applicants based on the following weights: (a) Written examination scores 40% (b) Assessment Center Board examination score 60% 100% Plus one point for each year of service in the department up to a maximum of ten points 10 points 110 points (2) Such eligibility list shall be valid for a period of twelve (12) continuous months from the date of final posting or until the list is exhausted. Section 10. Promotional testing while on Military Leave The Civil Service Commission may adopt procedures for testing personnel on military leave, which may dispense with the assessment center for all participants, with input from the HR Department and the Association. Section 11. Alternative Hiring. The provisions of this section are discretionary on the part of the Chief and may not be used to compel the City to hire any individual or to make an appointment where no vacancy exists. Despite any provisions of state law including Chapter 143 to the contrary, the provisions of this section shall prevail. A. Alternative Hiring Program. The Chief, without regard to the existence of or requirement for any eligibility list for beginning positions in the Department, may appoint applicants to beginning positions in accordance with this alternative hiring process. Each applicant must have41-)-a -6 ret Fire4i, i- ter -i ie-evriifi tan 1 {124 a Paramedic Certification. Each applicant must successfully complete entry requirements, including a medical examination, a physical fitness examination, a written examination, a background 29 investigation, a panel interview (panel to be appointed by the Chief) Drug test, and any other current eligibility requirements deemed appropriate by the Chief. Applicants who are appointed must successfully complete an academy specifically designed for applicants hired in accordance with this alternative hiring process. 1 � cantsv ho d ic C°ertitication rior tv enteriug academy mu successfully comple The Chief, in his /her sole discretion may deny the application of any applicant at any time. Such decisions shall not be subject to the Grievance procedure in this Agreement. Certification f xarl2 221 order to The beginning salary of employees those appointed under this alternative hiring process_ vho haee both a I ireii titer Basic C rtiflcation nd a i'arllledic Certification shall be equal to the They shall be except seniority ' hich sl benefits and probation. _. dic Ce sha ed under this i Cadets for :t11 tru C °adet 12 month; udiae seniorit and benefits unt n step. B. This provision shall be for the term of this agreement and not be subject to extension under Article XVII, except to the extent necessary to complete a hiring process which has been initiated during this contract, and which process has proceeded through administration of the written examination. ARTICLE X GRIEVANCE PROCEDURE Section 1. The purpose of this grievance procedure is to establish an effective method for the fair, expeditious and orderly adjustment of grievances, and is exclusively for contract grievances. A grievance is defined as any dispute, claim, or complaint involving the interpretations, application or alleged violation of any provisions of this Agreement. The Union or any bargaining unit member may file a grievance under the terms of this Agreement. Each grievance shall be submitted on a form attached hereto as Appendix "G" agreed to by the parties and must include: (1) a brief statement of the grievance and the facts or events on which it is based; (2) the sections(s) of the contract alleged to have been violated; and (3) the remedy or adjustment sought, and the bargaining unit members signature or if filed by the Union, the signature of the Grievance Committee Chairman or local Association President. 30 Section 2. Grievance Procedure: Step 1 An employee who is aggrieved should informally seek to resolve a grievance with his/her supervisor, in order for the City to have notice and an opportunity to correct any unintentional acts or conduct not consistent with this Agreement. Step 2 An employee who is aggrieved must file a grievance with the Union Grievance Committee within ten (10) calendar days of the date that the Firefighter knew or should have known of the facts or events giving rise to the grievance. A copy of the notice of receipt of the grievance shall be forwarded to the Fire Chief or hisiier designee by the Union Grievance Committee within three (3) calendar days of receipt of the grievance. The Union Grievance Committee shall within fifteen (15) calendar days of receipt of the grievance, determine if a Valid grievance exists. If the Union Grievance Committee determines that no valid grievance exists, it shall notify the Fire chief or his /her designee that no further proceedings will be necessary. If the Union Grievance Committee determines that the grievance is valid, it shall process the grievance on behalf of the Firefighter(s) by forwarding the written grievance to Step 3 of this procedure. Step 3 Any grievance found to be valid by the Union Grievance Committee shall be submitted to the Fire Chief within ten (10) calendar days of the Step 2 ruling. After receipt of the grievance, the Fire Chief shall, within fifteen (15) calendar days of receipt of the grievance submit his/her response in writing to the Union Grievance Committee. Step 4 If the grievance is not resolved at Step 3, the Union shall have ten (10) calendar days following its receipt of the decision of the Fire Chief, to submit the grievance to the City Manager. The City Manager shall within twenty five (25) calendar days of receipt of the grievance submit his /her response in writing to the Union Grievance Committee. Step 5 If the grievance is not resolved at Step 4, the Union shall have ten (10) calendar days from receipt of the City Manager's decision to submit the matter to arbitration. The arbitration procedure will be implemented by the Union notifying the City Manager in writing of their intent to submit the grievance to arbitration. Step 6 If a grievance is submitted to arbitration, the City and the Union may, within five (5) calendar days of such request, mutually agree to a neutral arbitrator. If the parties are unable to agree on such an appointment, the City or the Union shall, within five (5) calendar days, request a list of seven (7) arbitrators from the American Arbitration Association or the Federal Mediation and Conciliation Service. Within ten (10) calendar days following receipt of the list of arbitrators, the parties shall select an arbitrator by each party in turn striking one (1) name from the list until only one (1) name remains. The remaining individual on the list shall serve as the arbitrator. The arbitrator so selected shall, through the agency selected, be promptly notified of his /her selection and the parties in agreement with the arbitrator shall select a time, place and date for the hearing of the grievance. 31 (a) Within thirty (30) calendar days after conclusion of the hearing, the arbitrator shall issue a written opinion and ruling with respect to the issues presented, a copy of which shall be mailed or delivered to the Union and the City. (b) With respect to the application, interpretation and enforcement of the provisions of this Agreement the decision of the arbitrator shall be final and binding on the parties to this Agreement. It shall be the Association's burden of proof to establish the facts and merits of the Grievance. (c) The arbitrator's authority shall be limited to the interpretation and application of the terms of this Agreement and/or any supplement thereto. The hearing on the arbitration shall be informal and the strict rules of evidence or pleadings shall not apply. The arbitrator shall have no jurisdiction or authority to establish provisions of a new agreement. The arbitrator shall not have the power to add to, subtract from, or modify the applicable provisions of this agreement in arriving at a decision on the issue or issues presented but shall confine his /her decision to the interpretation, application or enforcement of this agreement as applicable to the facts and circumstances presented. The arbitrator shall confine himself/lerself to the issues submitted for arbitration, and shall have no authority to determine any issue not submitted to him/her. (d) If a transcript of the proceedings is requested, then the party so requesting shall pay for such transcript, unless otherwise agreed to by the parties. The losing party shall pay all the fees and expenses of the arbitrator. The arbitrator shall designate the losing party for purposes of this paragraph, and may find that both parties lost in part and apportion fees and expenses accordingly. Each party shall be responsible for the cost of the attendance of its witnesses at a contract grievance hearing. Nothing in this agreement shall prevent the Association from charging non - members a reasonable fee and expenses for representation, in accordance with its by -law and other applicable law. (f) For the purpose of this Article only, if the final date of any response and/or filing period falls upon a City holiday (observed date), Saturday or Sunday, then the due date will fall on the next business day. All time limits set forth in this Article may be extended by mutual consent, but if not so extended they must be strictly observed. Failure of the Union or the grievant to comply with the time limits set forth will serve to declare the grievance settled and no further action may be taken. Failure of the City to respond within the time limits shall constitute a denial of the grievance and the grievant (Union) may proceed to the next step. It is specifically and expressly understood that filing a grievance under this Article that has as its last step final and binding arbitration, constitutes an election of remedies and any appeal of an arbitrator's decision in this procedure shall be strictly and solely limited to the grounds that the arbitrator exceeded his or her authority and jurisdiction as provided under this Agreement, that the decision of the arbitrator was procured by fraud or collusion or that the arbitrators decision is based upon a clear and manifest error of law. (e) 32 Section 3. Civil Service Appeals. All appeals of Firefighters' disciplinary matters, promotional passovers, recommended demotions or other issues, heretofore heard by the Civil Service Commission or Hearing Examiner as provided in the Texas Local Government Code, Chapter 143, shall continue to be so heard and with all rights of appeals as provided in the Texas Local Government Code, Chapter 143, et seq., Vernon's Texas Codes Annotated, as amended, as modified by Article XI of this Agreement, and are not subject to the contract grievance procedure. Section 4. Appeals From Promotional Bypass. An employee who is bypassed for promotion pursuant to Chapter 143, Section 143.036, may appeal such decision to arbitration within ten (10) days of receiving written notice thereof. The notice of bypass shall state the Chief's reasons for such bypass. The employee's appeal shall be in writing and shall be filed with the Director of Human Resources. Said appeal shall be decided by one (1) arbitrator chosen in accordance with this policy. The City and the employee shall share equally the arbitration fees and expenses, except where the Union represents the employee it shall pay his /her share. With respect to promotional bypass, the employee shall have such right to appeal the arbitrator's decision to district court as he/she is given in Chapter 143 to appeal the Commission's decision, and no greater right. ARTICLE XI APPEALS FROM DISCIPLINARY ACTIONS A. Notwithstanding the provisions of Chapter 143 of the Local Government Code or any other provisions of this contract, the Chief shall have the authority to suspend an employee for a period of time not more than thirty (30) calendar days with said suspension subject to appeal. Appeals by an employee from a demotion, temporary suspension, or indefinite suspension under Chapter 143 shall be determined by the arbitration procedure provided herein, rather than by the Civil Service Commission. Notwithstanding Texas Local Government Code Section 143.036(a), the issuance of an indefinite suspension statement under Texas Local Government Code Section 143.052(b) shall not constitute a vacancy and no vacancy will result therefrom until all appeals are final or 30 days from the date of issuance if there is no appeal. Investigations of complaints against employees shall be conducted following current policies and practices. The parties agree that the provisions of this Article satisfy Texas Government Code §614.021(b) and that the provision herein control and prevail over Subchapter B of Texas Government Code Chapter 614 pursuant to Texas Local Government Code 174.006. B. Disciplinary action may be taken against a Firefighter within six (6) months of the discovery by the Chief of conduct by the Firefighter which would constitute a felony and not thereafter. Provided that such limitation shall not prevent disciplinary action against a 33 Firefighter based upon his conviction for any such crime notwithstanding that discovery of the conduct on which the conviction is based occurred more than six (6) months before the disciplinary action. Provided further that no disciplinary action may be taken for conduct on which the criminal statute of limitations has run, regardless of the date of discovery. C. Prior to any such disciplinary action, the employee shall be given written notice of contemplated disciplinary action, stating the action or actions contemplated and the reasons therefore, and notifying the employee that he may rebut the charges to the Chief, either orally or in writing, within a reasonable time, which time shall be stated in the notice. D. After the notice and opportunity for rebuttal provided in the preceding paragraph, the Chief may demote, suspend or terminate an employee by personal service on the employee of a written statement of charges. If the Chief should be unable to secure personal service after due diligence, service may be made by mailing it to the employee by certified mail, return receipt requested, in the mail addressed to the employee's last known address, along with delivery of the statement to the Association. Proof of such service shall be sufficient to support any disciplinary action. E. A copy of such statement, along with a copy of the notice of contemplated disciplinary action, shall be promptly filed with the Director of Human Resources of the City. F. The written statement shall point out the particular rule or rules alleged to have been violated by the employee and the specific act or acts alleged to be in violation. Said statement shall inform the employee that he has ten (10) days after receipt thereof to file a written appeal with the Director of Human Resources. If alternate service is had as provided herein, the employee shall then have ten (10) days from service upon the Association. G. Appeal from suspension, termination or demotion shall be decided by one (1) arbitrator, selected according to this contract. H. Upon receiving an appeal from an employee, the Director shall act immediately to notify the Association and the Chief of the appeal to arbitration. The employee and the City (the parties) shall attempt to mutually agree on an arbitrator. If the parties fail to agree on an arbitrator within ten (10) days after the appeal is filed, the Director shall immediately request a list of seven (7) qualified neutrals from the American Arbitration Association. The parties may mutually agree on one (1) of the seven (7) neutrals. If they do not so agree, the parties shall alternately strike the names on the list within five (5) working days after receipt of the list, and the remaining name shall be the arbitrator. All parties shall act to complete the selection process at the earliest possible date. The arbitrator shall be immediately notified of his selection. The hearing shall be commenced within such reasonable time as the arbitrator selected can be scheduled. If the arbitrator selected cannot commence the hearing within sixty (60) days from his selection, either party may within two (2) days of so learning, call for selection of a new arbitrator, and if the parties cannot agree upon a substitute within one (1) day of so learning, another arbitrator shall be selected from a new list of seven (7) names immediately requested from the American Arbitration Association, according to the procedure set out herein. The hearing shall be scheduled so that it can be completed without break, in consecutive calendar days (excluding weekends and holidays). The arbitrator shall make an award within thirty (30) days of the close of evidence in conventional arbitration hearings. 34 Post hearing briefs shall only be permitted in conventional arbitration hearings, and must be mailed to the arbitrator within seven (7) days of the close of evidence at the hearing. J. A stenographic transcription of the proceedings shall be made only upon written agreement of the parties prior to the commencement of the hearing. Should there be no agreement, the party desiring the transcript may have the transcript made at its sole expense. K. The award of the arbitrator shall state which particular factual charges he finds to be true, if any, and the particular rules he finds such conduct to have violated, if any. Where the charges are upheld, the award shall state whether the discipline imposed is upheld, or whether some lesser discipline is substituted. An employee shall be entitled to recover backpay for any part of a suspension not upheld by the arbitrator. L. The following rules shall govern the conduct of hearings under this section, and of certain preliminary matters: (1) Upon request of either party addressed to the opposing party at least two (2) days prior to the date of hearing, the parties shall exchange the names of witnesses expected to be called at the hearing. Upon failure of a party to disclose such witnesses, the arbitrator may exclude their testimony. (2) The arbitrator shall have the power to subpoena witnesses, records, and other evidence. Prior to the hearing, the Director of Human Resources shall issue subpoenas requested by the parties in the name of their arbitrator. A party may apply to the arbitrator to quash a subpoena so issued. (3) In all hearings under this section, the burden of proof shall be upon the City. (4) The parties, in writing, may request discovery from each other concerning the case. Should the other party not agree to provide the requested information within three (3) days of the request, the request, shall be deemed denied. The requesting party may then apply to the arbitrator, who shall order such discovery as appropriate to the nature of the case, subject to rules of discovery in Texas civil cases. In considering the application, the arbitrator shall consider the burden and expense of producing the information, the need of the requesting party, the amount of time available prior to the hearing, and such other matters as he may deem material. In no event shall discovery be permitted to delay the hearing, and in no event shall discovery be requested within three (3) days prior to the hearing. All hearings shall be public unless it is expressly agreed in writing by the parties that the hearing shall be closed to the public. In any event, the final decision of the arbitrator shall be public, although public announcement may be reasonably delayed upon request of the parties. (6) Unless otherwise provided in this contract, the conduct of the hearing shall be governed by the rules of the American Arbitration Association. M. The Arbitrator shall have all powers vested in the Commission under Chapter 143, and the Commission Rules, with respect to suspensions, terminations, and demotions, except the power to amend such rules. (5) 35 N. Any notice or statement required to be filed by the Fire Chief or the employee in a disciplinary proceeding under Chapter 143, under Commission Rules, or under this contract, shall be filed with the Director of Human Resources of the City. O. With respect to terminations, temporary suspensions, and demotions, the employee shall have such right to appeal the arbitrator's decision to district court as he is given in Chapter 143 to appeal the Commission's decision, and no greater right. P. Unless otherwise provided in this contract, in cases of conflict, the provisions of this contract will control over Chapter 143, Civil Service Commission Rules, and American Arbitration Association Rules; and Chapter 143 and Civil Service rules promulgated pursuant to it shall control over American Arbitration Association rules. Q. The City and the aggrieved employee shall share equally the fees and expenses of the arbitration. Where the Association represents the employee, it shall share equally the arbitration fees and expenses with the City. Nothing in this agreement shall prevent the Association from charging non - members a reasonable fee and expenses for representation, in accordance with its by -laws and other applicable law. All hearings which are expected to be completed in one (1) day shall be submitted for expedited arbitration. On all other hearings, the parties may agree to request expedited arbitration. R. Any deadline or time restrictions set out in this contract with respect to disciplinary proceedings may be modified by written agreement of the parties. However, neither party may be compelled to waive its right to insist upon the deadlines and time restrictions provided by this Contract. S. Suspensions by Agreement The Chief may suspend an employee for a period of time not more than sixty (60) calendar days provided that the employee agrees in writing to the suspension. The employee shall have no right to appeal such agreed suspension or to make it the subject of a grievance and no administrative or judicial body shall have the power to review such a suspension or to alter the terms of the agreement. ARTICLE XII HEALTH & WELFARE Section 1. Labor - Management Committee. The City and the Union, having recognized that cooperation between management and employees is indispensable to the accomplishment of sound and harmonious labor relations, shall jointly maintain and support a Labor Relations Committee. The Labor - Management Committee shall consider, discuss, and recommend to the Chief or the City any problems pertaining to the employment conditions of employees. The Union shall designate its representatives. The City shall designate its representatives. The Labor - Management Committee shall meet quarterly or at the call of either the Union members or the City members at times mutually agreeable to both parties. Section 2. Identification Cards. The City shall furnish all Firefighters identification cards bearing the member's name, photograph, rank, employee number, and containing a space for the signature of the member. 36 $196 92 $2r9.51- )ieieeiited side the 37 144e1+fee44e ‘ suranee—Go-ve-Fa#e fe(irenrent tifder the Corpus Christi- theipfe-v- shall, along with attnO eH4e++f-0e- - le 1..Titrallee PUNIC Safety CitiCare. or disabled ..spi+rtse-and &pen - siri&Fesstx -(4.1.1te4O-t+ - e ."ee. wen-age -shall remain in force for-said fonner employee while paid. such former employee while paid 'Pedicure A & I; ire ii,stirtii,ee covcrage ,Section 3.1-lealth Care insurance Plan and Life Premiums, A. Health Care Plan: The City shall irovide health care coveraoe for Fircltttliters and their dependents. The plan will be called CitiCare fare Health Insurance Plan. .Effective October 201 2 emplovees -.11id retirees who were M& ioush ii-itiftfalliered ilt MEI 1 litter called Public Safety CitiCare. 'Alit he 1110Ved to ti e C Ci-tre Fire Health Insurance Plan. B. \\ eekl - ireiniuin eosts for CtiCare Fire flealth insurance Plan October 11 2012 are as •fo llows: 38 (Formatted: Font: 12 pt Formatted: Font color: Auto Formatted: Indent: Left: 0.5, No bullets or numbering Formatted: Font: 12 pt Employee Cost !Employee Employee & Spouse $179.50 .Employee & Children $142.77 Employee & Fatally $290.28 City Cost $29698 $476.47 $439.75 $587.27 The City shall pay MO% of the entioyee's premiums and 50`80 of the premium for drzendent coverage. towards the CitiCare Fire flealth Insurance Plan. .Premium rates shall be determined tising the agreed 11lLt11odoIo gy described 111 tho, \ILLIIILHI lit thL event altentate 1 flb IUL iffirodaLLd it e tuture, t dollar r amount of City contribution i11 always be based upon the outcome of this toward all plans and employee tiers of coverage unless otherwise agreed upon lnr the Associat The City agrees to provide the Association and/or its consultant(s) information used detenninrennums (with the exception of information sribject 10 rivacy limitations under the federal aw„ whirling 1 11PP AA., unless no 101 1 ILLm(nts or a 111 trizatiom P0 have ee executed e Citv ti The City will notify the Association, in advance, if any E ,-reelnsuriince Advisory Committee meetings. -1111.e Association will be i'illowed 10 hrive reaesentation on the Employee insurance Advisory Committee, and 00 ator committees formed to evaluate proposals in response to Rewiests for Proposak reliited to negotiiited benefits of the bargainiiig uMt. The City shall notify the Association in writing of prennura increases with a minimum of sixty " crilendar days notice ol lu change. and of health plan cluinges with a minimum of thirty (301days notice of any change. 7111e City retains the right to negotiate with insurance carriers; third party administrators and their related sub-contractors and/or medical providers to provide insurance coverage and/or administration or the CitiGtre Fire lierilth.tristirance Rut The benefits in the )Ian that will be negotiated will be hos pocket amoillati co-pays and co-insurance percentages. dcdurtiblcs inaxrr uu:t of partici latlno p rider Service Areas shall always includc the following areas: Cr us Christi and e siiiiouioliiie area., South Texas, DallasiToil Worth Elouston t) .1,aredo and Austi Out of Network is the use of any hospital. physician or other health care Otcililv or o lessioiial that has t liIILO an -1.greement with the City's efened 'wider network. 39 Formatted: Font: 12 pt In the event a covered member does not live or Work in an area with indletwork providers, and in cases of emergency care, services provided outside the participating. provider service areas will be provided at the in-network level of benefits. Tire City wifl fulfill its oblioations -onduct i hi-annual actuarial study of thc GASB liability' and adjust the cumul(dive recorded OPEB liability accordingly. -111.e first adjustment to the cumulative recorded OPEB lit-Ability, including past and current; wifl be made in Fiscal 7CeLlr 12/13. Adjustments wiflcontintie to be mt-ide to the CUlatthltiVe recorded OPEB Oast and current; as detennihed by the 1I 101 actuarial study or the GASB 1 bit Plan changes mandated by federal health care leg'slation will he implemented as required. The Association ',\/111 be notified of such changes. The following components wifl be used to calculate the premiums for active employees and retirees under age 65: 1. Effective ()ember 1, 2012 employees and retirees who were previously grandththered titer called Public SJiletv CitiCare, wif ved 10 thL CitiCare Fire Health Insurance Plan. 2. Third Party Administrator TA adniinistiativc fees 3. Stop loss premiums 4. 11w-tined and laid medical and rescriation drug claims 'after sto loss Jidist ents, rebates, subrogation recovenes, coordination of benefit ecoveries ) of all -s (active emplovees„ retirees; and participating dependents)„ with allowance for adjustment based upon expected benefit plan, enrollment or other changes. The base time frame for this data N.Vill he based horn a consecutive seventeen (1 71 month time period ending seven (7) months prior to the effective date of such rate and benefit changes. The resulting net claim factors will be converted to a twelve (12) month L1U01ILnt f ses ol estab is base claims factor to be used in the calculation to determine contributions. 5. A uorated contribution toward the cost of an onsite primary care clinic (the percentage of meirtbers covered under the CitiCare Fire Health Insurance Plan divided by the total covered members under the City's health plans who are eligible to use the clinic times the estimated annual cost of the clinicl 6. Incurred But Not Reported (1i3NR clainis, as actuarially dctcnmned deters . 7. The net change in forecasted and prior period catastrophic reserve funding (105 of actuarial projected clahns expensel 8. —Assumptions for Jid trend components used to estimate future claims wilf incorporate prevailing plan specific, regional.. and national trends, as well as the anticipated im fact of Jim,' mandated benefits, and Jim,' other hictons determined to imfact the overall 40 trend. Actuarial and consultino Unita from both parties wilt agree upon the hictons) applied in accordance with professional, ethical and generally accepted practices. if agreement is 1101 r -ached.. within two (2' veeks lllLr the tictuary re is mis Tided to the Association., the Citssi11 lmpIeioeRl the recommendation of is Actuary. The City must notify the Association in writing of its intent to implement its actuarial recommendation. The Associtition has seven (7) calendar (Ittys from receipt of drat tionce bo m (1 in writing to the City INJanaGer or desio ee aiid rcsiest the dissutc rcsolution rocess as outlined below/ Each party's actuary lull 1111111 ilis T aoree 1111111 seven (7 i calendar days t on A third neutral actoars Thcartics shall sub ) E e s rviti from the date 01 his/her selection. A decision factors tipplied to determine the contribution requirements for active employees and retirees "der AlL'EC 65 shall he delivered to the martiessvitluii seven "7 calendar days and shall he binding on a nes. 1 i&.h iany s 91 av lhL lolil fees and ex nse, of thLir )wri actuary 11 leet e net ti a tit ass as to ilTLe and each shal as hall 01 lees and ex tenses 01 tise neutral a T "art'. 9. The cumulative net fund balance. a. The initial fund balance to be used for the first measurement period will be the actual CitiCare Fire llettith insurttnce Plan Fund Balance t.lso referred to tits' "fund btilance")„ but 1101 Ix. less uut $1,633,8571 restricted and unrestricted funds. Net fund balances for the plan (the difference between the total fund balance and the 01113 liability) will carry forward throughout this Agreement. .1.1 is tigreed that the Fiscal Year 12/13 opEB liability as well as all future OPE.B liatmihtv will be determined by the bi- annual actuarial study of the CASE; liability and \yin he funded by the fund balance. 11 is also agreed that the past cumulative recorded OPE.B hahihtv will be determined by the bi-annual actuarial study of the GAS.13 liahhts It is agreed that as of August L 2012 the past cumulative recorded opEB 11 Eipiiity is $4,653..600.00 and will be ad tied accordingly as determined hi the bi-annual actuarial study of the GASi3 liability. The first adjustment to the cumultitive recorded 0.0E13 liability.. including past and cunent„ will be made in Fiscal Year 12/13. Adjustments will continue to be made to the cumulative recorded opEB liability, including. past and current, as determined by the bi- a ial actuarial study 01 GASB .1.1 is also agreed that the east cu (11 GISo recorded ( l'E 3 1ahilits e addressed and recovered linni the fund balance as follows beoliming Fiscal Year 14/15 until it is rally recovered. or until 01'1/11 liabilities are longer 1.( aired or mandated by GAS!1 (Govenurtental Accounting StandtArds 130001) in which case arty monies allocated for opt"; liabilities will transfer back to the CitiCttre Fire 1 lean Insurance Plan cumulative laud balalice: Fiscal Year 1 4/ 15 2% of the past cumulat 1).13.111313 Fiscal Year 15/16 3% of the past cumulative recorded OP1/11 Fiscal Year 16/17 49 01.'"the past cumulat ve recorded orEB Fiscal Year 17/18 5% of the past cuniulative recorded 013E13 liability: and 41 5')/0 of the past cumulative recorded OPEB liability all fiscal years thereafter 17/18 ttlitil he past cumulative ()PTA; 1ia1ohtv is full \ reco■ ered. Formatted: Font: 12 pt The above schedule for recovery of the past cumulative recorded OPEB liability is separate and apart from the funding of the current and future OPEB liaPiliti. file above recovery schedule for the past cumulative recorded opEB liability sets the minimum standards for recovery. It is agreed that a higher \ercentage of recovery inav be made towards the past cumulative recorded opEB liability at the election of the Firefighters. Should the fund balance fall below $1...600,0100) at the end of each fiscal year on July 31„ the recovery of the past cumulative recorded OPEB liability\vill cease for that fiscal year until the next fiscal year. It is agreed that at the expiration of this contract, the past cumulative recorded OPEB liability as Well as all current and future OPEB liability will be recognized, addressed. recovered, funded and included in all contracts following til stud e GASB thereafter as determined O011; liabilities are iCOtLlTlti c ual ua Eler reuircd or inandatcd lovernmenta Standards Ilo a d' 111 IVITOOlTI case a as allocatcd fOr :pa; liabilities will transfer back to the CitiCare Fire I lean Insurance Plan cumulative fund balance. C. The plan shall be structured as tbllows: CITICARE FIRE HEALTH INSURANCE PLAN ,BENEFITS IN NETWORK (Participating Pro‘ hicrst OUT-OF-NE'INVORK ,PLAN YEAR DEDUCTIBLE No Plan Year 1)eductible $200 IPer Individual •$51)() Max Fail-lily yHYSICIAN SERVICES In-Patient Out-Patient Emergent:\ Room $15.0.) Co-Pav 70/305/ Cosliisuralice ,LABORATOR'Y SERVICES Physician's Office Lab Facilities Hospitals $10.00 Co-Pav 70/305/ Cosliisuralice ,X-Rays, Physician's Office: X-Rav Facilities: $100(J CosPa\- $15.01CosPay Co-liisirance 42 Formatted: Font: Times New Roman, 10 pt 1 ( Formatted: Centered (Formatted: Font: Times New Roman, 12 pt ( Formatted: Font: Times New Roman ( Formatted: Font: Times New Roman ((Formatted: Font: Times New Roman (Formatted: Font: Times New Roman (Formatted: Font: Times New Roman ( Formatted: Font: Times New Roman Emerge Room Services $50 Co-Pa \ .Lher Co-hisurance •7t)/3()°A)Co-Ilist.irattice • aliza " -Patient) $200 Individual Deductible 5600 Ma r. Family Deductible then S5/ [511/tt Co-Insurance 7()/3t/bi)Co-ritstirai pospitalization (Out-Patient) $ Deductible Per Individual 5250 Max Family Deductible then 55/15% Co-Insurance 70/30% Co-Insurai eta] Prescriptions $11— Generic $211 — l'reterred rand $411 — Noit-l'refen-ed rand No Deductible 70/30% Co-Insurance rrescriptions Mandatory Mail Order 90 Dav Stipp!v of aintenance PrescrPtioiis s: $0 — Generic $20 — lPreferred lBrand $40 Noit-Preferred lBrand No Deductible 70/30% Co-insurance ut-Of-Pocket Cost Excluding Deductibles Co-Pays $500 l'er htdividual $1.250 Max t dimly $700 l'er 51.750 Max l'amilt Benefit — S2,000.000, unless other-o‘ise required This is a suing-Bar\ ()nil\ plan document NI ill govern. * Employees and dependents covered bv the CitiCare Fire Itlealth Insurance Plan will be excluded from the dm!: formulary. ** E -men .Rooin Services. V/'iII increase to 550.00 co-Pav provided that 2 minor emert.tencv clinics are included one on the Southside of Covis Christi t-ind the other in the Calallen area. Should the number of minor ementencv clinics inn below 2 for mare than 9(1 consecutive days the Co-Pay will be $15.00. Other elitaible services and elitaible medical supplies as shostat in the CitiCare .Fire Insurance Plan document shrill be covered at 8511/0/151b, for_primary networks $100.00 deductible/ $250.00 family maximum deductible and 8011/0/2055 for special services or $200.00 deductible/ $500.00 family maximum deductible and 719/030% for out of network. When an expenditure is made toward a deductible and/or out-of-pocket requirements; it is caartutative in all three catettories. Participating .Provider Service Areas are those locations covered bv a primary network: 11 exits Dallas/ \Vorth, flouston, San t Laredo asd /5. ust 43 [Formatted: Font: Times New Roman Formatted: Font: Times New Roman ( Formatted: Font: Times New Roman Formatted: Font: Times New Roman [Formatted: Font: Times New Roman ( Formatted: Font: Times New Roman, 12 pt (—Formatted: Font: Times New Roman Formatted: Font: (Default) Times New Roman] Formatted: Font: (Default) Times New Roman, Bold ((Formatted: Font: 12 pt 0uofNetwo/k is the use of any hospital, physician n[other health care hicility or professional that has not signed uu agreement with the City orbo health care administrator to provide services as the prefen-ed provider. �uld the number italsumilable the network tiL|i below 2for more than 90- consecutive days.. the hospitalization shall be 8oY{DoY6. deductibles obJ|hc$ioo10mcrcnokcvvwrdimJiyidmL%30o10bmi|vomxiuum.. and out-of-nocbu shall bc$4&o10 per each covered individual until the nuniber oi hospllals is at least Should the number of total_physicians in the network fall below 388_ for more than 98- consecutive da»o. the reimbursement xcuemmgz for m»+`f-/u1wvrk2lryoiciau^orkvs'laboratory services and x-rays shall be 80`)/0/20`)/0, the deductible shall be $1 00.00 per each covered individua $300.00 family twtximunt, 11- cket shall be $4811.00 )e'r eleit covered individual u it number o[nkviclau the network is 30(1. � Mork vsiciamnmrone u ' s ecialtv remain for more tha )0- consecutive days below 5(1%o[ the number o[ network physicians who were iu the network iuthat nyecit-kv on October _L_20D2. ,t&-of-network _pbysici1ms services in nyecifi|n shall be reimbursed at 811`)/0/20y, the deductible shall be $1o0.00 per each covered individual, *300.00 family maximum and out-oh»ocket shall be $4 80.00 per each covered individual until the number o[oersvmt physicians iu that specialty bunumsmuzkoo50%o[ the number who were iuthe network in that specialty on October 1. 201 2. Provided however, that covered individual who 1135 hcuig treated bvu network physician within 9l-coxserubnr days before the dos the number fell below 50% shall pay Uu Primary Network Physicians' Services Co-Pay rate for that treating physician's senfices for up to 90-consecutive days u8er the number fell below 506if that treating physician has becoilie an out-of-network provider. The City n iuD pay 100% of the employee's for dependent coverage. Premium rates shall be determined by the City based t:fri the cost of the plan. The City has the authority to restructure buuUm, with the exception of hospitalization deductibles. maximum out of pocket amounts and reimbursement /enmuueco. The City also has the authority to restructure network composition o[ the nnfencd provider network. The !City 2dltins -the right movg`duuwith insmmrcu«dk" pm,id'rsOn benefits, cv,ontze and administration Linder CitiCare Fire Health Insurance Plan. lhe benelits 111 the outolotet\\ork portion (11 Uie l0lt 11131 001 be cliaitged unless negotiated and agreed tt f the City and the Association. The purpose of premiums io to generate revenues to cover claim costs. Co-pays are not intended m generate revenues. Formatted: Font: 12 pt 44 D. Pro‘ isions Apph int!. to All Offered Plans as of Auttust 1, 2012. HPV vaccinations u a 10 age 25 will be covercd at 1 t sub ect 10 any cc cost s tarn TV to a $56 annual )ene- and The routine inammograahv benefit will have a per procedure maximum benefit of $150 not subject 10 any co-pay Or cost sharing provision. .Benelits for Hospice Care; both facility and home based care; will be covered as any other llIpss tw-Jx-iirtum of ninety 911) days c yen-vac per lllLtlmL Benefits for .Home Health Care and Skilled INlursing..Fac tv Care will be covered as any other illness, maximum of ninety 19(1) days coverage per plan year. Retiree Healtitilnsurance Coverage. Employees who retire under the conditions of disability in accordance with the Corpus Christi Firefighters Retirement System or Social Security or under regular retirement under the Corpus Christi Firefighters Retirement System or under Social Security after ten (10 years of continuous service with the City, along with their articipating dependents covered 011 the last day of employment, shall be eligible to continue participation in the City's CitiCare Fire Health Insurance Plan at monthly premiums subject to periodic changes in rates as rL 0159 in the agreement. The Mtal cost of such continued coverage shall be paid entirely by the employee and/or spause. the spouse's rights shall continue Mier the employee's death, but shall terminate upon divorce. Coverage shall remain in 1/o1ce for the retiree while Ftid until he or she becomes eligible for .Ndedicare or reaches age 65 at which time coverage in the CitiCare hire Health Insurance Plan will cease. While the retiree remains in the City's CitiCare hire Healthilnsurance Plan, or fully insured plint otILrms tor Medicare eligible retirees. coven-Le shall rem M0 in force for the s 'muse while )aid 11111 isa 01 shI. becomes 5Inibl5 for Ddedicare or reaches t--1.2e 65 at which - COVCT000 in the CitiCare Fire Health Insurance Plan shall cease. Coverme shall remain force for the retiree's participating dependent children while paid until they become inelble as defined in the plan at which time coverage in the CitiCare Fire Health Insurance Plan shall cease. Medicare eligible retirees and their Medicare eligible dependents will be elio ibk )ate in City's bus 1101159 Isn OItLfllLO, tbr.Ndedicare elioible retirees. 2. '1:1-te City agrees to pay to the Union a contribution equal to $30.01 month per employee; which the 1,1Pion threes to use bor st knlLnt il 1155111055 110 0 105, for t-Jc. Are or retired Firetiohters. addition. the City shall aly to the Union August 1. 2018, ud each August I thereafter $150,000 for the Corpus Christi Firefighters Health and Benefit Trust. Effective August 2009. the Ja ties agree to use a contribution escalator for the contribution of the city caual tha base -eitta0e incrcasc aff orded members of Usa barsia ining uiut durine Usa fisca Year. 3. 'The City shall provide hash: ce COVeraoe. for erich Fireliohter LQU i il to the hirefiohter's anriiial salary. 45 On Chris dollars ($ 1. 2( }i2. the City agrees tc and Benet le lamp sum payuler s d hr the amount of one huardred ilxousand Christi dollars Corpus sand Formatted: No bullets or numbering (Formatted: Font: 12 pt Section 4. Disability. No sick leave shall be charged for injury or illness sustained in the line of duty. Employees shall be paid leave in an amount not to exceed their regular salary as provided by Section 143.073, Chapter 143 for injuries or illnesses occurring in the course of employment. The use of accrued sick leave may be granted to any Firefighter at the discretion of the Chief for job - related illnesses or injuries after injury leave has been exhausted. For purposes of line of duty illness or injury leave, "line of duty illness" shall be defined as an illness which has been directly and substantially caused by the duties of the position. Provided, however, that this definition applies only to a line of duty illness under Section 143.073, Chapter 143, and is in no way intended to govern the payment of benefits under the workers' compensation statutes, which benefits shall continue to be governed solely by the workers' compensation statutes. A disability shall be defined as a physical injury or illness which prevents an officer from fully performing the duties of the position to which he /she was assigned at the time his/her disability commenced. A "permanent disability" is an injury or illness which disables a Firefighter to the extent that it cannot be said in reasonable medical probability that he/she will be able to return to full duties within one (1) calendar year from the date that the Fire Chief determines in writing that the disability is permanent. Upon termination for permanent disability which is non job related, the Firefighter shall be entitled to a lump sum payment for all his accumulated sick leave, and for accumulated vacation leave not in excess of the limit established by Article XII, Section 8 of this Agreement. Upon termination for permanent disability which is job - related, the Firefighter shall be entitled to a lump sum payment for any injury leave he/she may have remaining out of the one (1) year provided in Chapter 143, Section 143.073, all accumulated sick leave, and for accumulated vacation leave not in excess of the limit established by Article XII, Section 8 of this Agreement. All such payments shall be calculated and compensated as of the date the employee is determined to be permanently disabled and shall not include additional accrual of sick leave, vacation, or holidays beyond that date. The procedure for determining the permanent disability shall be as follows: In the event the Chief determines after consultation with the City designated Physician that a Firefighter is permanently unable to perform his or her job duties, he /she may institute immediate termination or retirement whichever, is applicable. Prior to taking formal action on the above determination, the Chief will inform the Pension Board, in writing, of his /her intentions. The Firefighter may call for further examination by a board of three physicians. One such doctor shall be appointed by the City, one by the Firefighter, and the third by said doctors. Provided, however, that the third doctor must be approved by the City designated Physician. The doctor designated by the Firefighter shall be paid by him /her. The other 46 two doctors shall be paid by the City. The decision of a majority of three physicians as to whether a permanent disability as defined herein exists shall be final. A Firefighter who has previously been terminated due to disability may, if found to be otherwise qualified within two (2) years of the termination date for disability by the Chief, be eligible for reappointment at the same rank upon certification by the City's designated Physician that he or she has recovered and physically is able to perform full duties. Section 5. Sick Leave and Retirement Pool. A. Each Firefighter shall accumulate fifteen (15) days of sick leave with pay per year. Effective January 1, 1988, the Sick Leave Retirement Pool will have a maximum balance of 2,000 days. Quarterly accounting will be maintained to provide a current balance of such days. Days used in accordance with provisions outlined below will be deducted from the pool until it reaches a minimum of five hundred (500) days, at which time two (2) sick leave days per Firefighter per year will be transferred from his/her individual account into the pool until the pool reaches its 2,000 -day limit. The Pool shall be used to compensate Firefighters who retire, during the term of this contract, other than on disability retirement, with more than ninety (90) days of accrued sick leave to their individual credit. Subject to the maximum limits specified in Sub - Section B, below, the retiree shall be compensated from the Pool for the amount of sick leave accrued to his/her individual credit that exceeds ninety (90) days. B. Upon termination, other than on disability retirement, an employee's compensation for the sick leave accrued to his/her individual credit shall be limited to the following amounts, according to the employee's time in service. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Less than 4 full years of service: zero days. 4 full years of service: not more than 30 days. 5 full years of service: not more than 40 days. 6 full years of service: not more than 50 days. 7 full years of service: not more than 60 days. 8 full years of service: not more than 70 days. 9 full years of service: not more than 80 days. 10 or more full years of service: not more than 90 days. 20 or more full years of service: not more than 150 days. 25 or more full years of service: not more than 180 days. C. If a Firefighter dies, any and all amounts he or she would have been entitled to under this section, or the entire amount of accumulated sick leave, whichever is greater, shall be paid to his or her dependents or estate. D. The parties agree that the payment of accrued sick leave as provided by state law and this contract shall be based only on base salary, longevity pay, certification pay, and assignment pay as per current payroll practice which is in compliance with state law and not in violation of this agreement and prior collective bargaining agreements. This provision will prevail 47 over the provisions of the Texas Local Government Code Section 143.045. Appendix E sets forth the pay methodology for eligible accrued sick leave. Section 6. Toxicology Reports. The City shall pay for the cost of toxicology reports in instances where a Firefighter dies as a result of an on- the -job injury or upon request by the employees family where recent exposure to excessive smoke or toxic fume inhalation is suspected as a contributing cause of death. Section 7. Mandatory Drug Testing. A. The City and the Union mutually agree that Firefighters may be called upon in hazardous situations without warning, and that it is imperative to the interest of Firefighters and the public to assure that Firefighters are not substance - impaired. In order to further their mutual interest in protecting Firefighters and the public, the City and the Union agree to testing, as described in the Fire Department's Alcohol & Drug Policy attached hereto as Attachment "1 ". The City Manager, Fire Chief and Director of Human Resources shall be included in the testing process. The fair and impartial statistical basis shall be by a non - discriminatory computerized program operated and certified as non - discriminatory by an independent firm hired by the City, and the employee shall be tested promptly upon being selected by the computer. B. Discipline shall be in accordance with the Fire Department's Alcohol & Drug Policy and the Civil Service Commission Rules and Regulations. C. No changes can be made to the language dealing with the provisions of the Corpus Christi Fire Department's Alcohol and Drug Policy without agreement by both the City and the Union. Section 8. Accrual of Vacation Days. All Firefighters hired after September 1, 1998, shall be allowed to accrue unlimited vacation leave hours (includes holiday leave hours), but upon retirement, resignation, or termination the Firefighter shall not be paid in excess of four hundred and eighty (480) hours for forty (40) hour workweek employees or seven hundred and twenty (720) hours for twenty four (24) hour shift employees. All Firefighters hired on or before September 1, 1998, shall be allowed to accrue unlimited vacation leave hours (includes holiday leave hours), but upon retirement, resignation, or termination the forty (40) hour workweek Firefighter shall not be paid in excess of an amount equal to seven hundred and twenty (720) hours plus the amount the Firefighter had on the books as of December 20, 1998. If the Firefighter is on the 24 hour shift, the Firefighter shall not be paid in excess of an amount equal to 1080 hours plus the amount the Firefighter had on the books as of December 20, 1998. Appendix E sets forth the pay methodology for eligible vacation leave. The City retains the current practice of permitting Firefighters to sell one (1) day of vacation for each day of vacation taken to a maximum of five (5) days per year. Firefighters can sell back only such vacation leave in excess of thirty (30) days accrued vacation leave pursuant to this provision. However, effective August 1, 1998, each Firefighter may sell back to the City two (2) days of vacation leave for each day of vacation leave taken during the year not to exceed a total of ten (10) days. For purposes of this Agreement, a Firefighter working a twenty four (24) hour shift shall be permitted to sell twelve (12) hours of accrued vacation leave per day not to exceed one hundred and twenty (120) hours (10 days times 12 hours) per year. All other Firefighters working forty (40) hours per workweek (regardless if on a 4 -10 schedule or 5 -8 schedule) shall be allowed to 48 sell back eighty (80) hours. Appendix E sets forth the pay methodology for eligible vacation sell back. The City shall distribute funds in cash or as contributions to a deferred compensation plan or as otherwise directed by the Firefighter. Any costs incurred for the transfer of funds for distributions other than direct payment to the employee shall be the responsibility of the Firefighter. The City may require that the Firefighter release and hold the City harmless for any penalties or other liability incurred by the City as a result of allowing the Firefighter to defer compensation under this provision. The City shall not be required to make a payment to a deferred compensation plan or other plan if it is determined, in the City's sole discretion, that such payment or distribution is not in compliance with all applicable laws, rules, and regulations. ARTICLE XIII LEGAL PROCEDURES Section 1. Legal Defense. The City will provide a legal defense to any Firefighter in a civil lawsuit, on account of any action taken by such Firefighter while acting within the course and scope of the Firefighter's employment for the City of Corpus Christi. The City will also provide legal defense for a Firefighter when he or she receives a traffic citation as a result of being involved in a traffic accident while making an emergency run to the scene of a fire or an emergency while acting in the course and scope of the Firefighter's employment for the City of Corpus Christi. The City, by conducting or participating in the employee's defense, does not assume any obligation or liability not otherwise imposed by law and does not expressly or impliedly waive any immunity or defense which is available to the City. The City shall assume no obligation not otherwise imposed by law for any judgment which is rendered against an employee. The City Manager may in his/her discretion refuse a legal defense for an employee where there are indications of intentional acts, gross negligence or recklessness which will be communicated to the employee in writing. The City shall provide such legal defense through an attorney not connected with the prosecution of such case. (1) The Firefighter shall notify the Fire Chief of any claim being made against such Firefighter not later than ten (10) days from the date that such Firefighter received notice of such claim, and shall request the City to assume the defense of the Firefighter regarding such claim. The City shall require that such request be made in writing. (2) If suit is brought against such Firefighter, such Firefighter shall immediately forward to the City Attorney every demand, notice, summons or other process received by him/her within twenty four (24) hours of receipt. Such Firefighter shall cooperate with the City and, upon the City's request, shall assist in making settlements, and the conduct of suits, and in enforcing any rights of contribution or indemnity against any person or organization who may be liable for all or part of such damages, and shall attend all hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. (3) 49 ARTICLE XIV ASSOCIATION HEALTH AND BENEFIT TRUST Section 1. Trust Creation. The City and the Corpus Christi Firefighters' Association agree that the Association Health and Benefit Trust is the sole responsibility of the Association and that the City has no involvement in the Trust. Section 2. Indemnification. The Association shall defend, indemnify and hold the City harmless from any and all claims, legal actions, liability, damages, and expense brought by any parties in connection with or arising out of the operation or administration of the Trust. ARTICLE XV REOPENER PROVISION The parties agree that the City or the Association may reopen negotiations as to matters included in the Tri -Data Comprehensive Analysis Fire and EMS Delivery Report currently being finalized, under Texas Local Government Code Chapter 174. Such negotiations shall be set at the convenience of both parties. This agreement shall also be subject to mutual renegotiation for a joint health plan group benefits pool with other classes of employees at any time during its term. In order for the contract to be amended both parties must agree upon the amendment. Amendments to the contract must be ratified by appropriate parties. As to the Tri -Data issues, this Provision will expire on August 1, 2007, otherwise it shall be in effect until a successor agreement is reached. ARTICLE XVI IMPASSE PROCEDURES PART I Negotiations for a new contract shall commence in accordance with The Fire and Police Employee Relations Act (the "Act") and Article VII, Section 2 of this contract. If impasse should be reached as defined in Section 174.152 of the "Act", either party may request mediation, and if mutually agreed upon, the parties shall immediately proceed to choose one mediator as provided herein. The function and powers of mediator shall be as specified in Section 174.151 of the "Act". The mediation shall extend for fourteen (14) calendar days. If no agreement is reached through mediation, upon request of either party, the parties shall submit the dispute to one Factfinder. The selection of the mediator and the Factfinder shall occur as follows. When either party requests mediation or factfinding, the parties may agree to choose any mediator or Factfinder or method of choosing same. If no agreement occurs within five (5) days from the request, the parties shall request a list of seven (7) neutrals from the American Arbitration Association (AAA). Upon receiving the list, the parties shall select the mediator or Factfinder by alternately striking names The request to AAA shall state the dates on which the neutrals must be available. The mediator and the Factfinder shall be selected within five (5) days after receipt of the list from the AAA. The fee and expenses of the mediator and the Factfinder shall be split equally between the City and the Union. All other expenses, including witness fees, shall be paid by the party incurring the expense or calling the witness. By agreement, the parties may submit any issue or issues to the Factfinders. If no such agreement is reached, then each party shall be entitled to submit two proposals to the 50 Factfinder, each proposal on one (1) distinct topic. For example, each of these constitute a distinct topic: salary, dependent health insurance coverage, promotional procedures, political activities. Each party may submit its two (2) proposals, and its alternatives to the other party's proposals. The Factfinder shall conduct a full and fair hearing on the issues submitted to him/her. The hearing shall be informal and strict rules of evidence shall not apply. After hearing all evidence offered by the parties, and any evidence requested independently by the Factfinder, the Factfinder shall render a written decision making findings of fact and recommendations as to all matters in dispute. In the opinion, the Factfinder shall exercise his /her independent judgment and shall not attempt to "split the difference." Where an issue is submitted to the Factfinder in the form of a proposal and an alternative to it, the Factfinder's decision with respect to that issue must recommend either the proposal or the alternative. The Factfinder's decision shall be submitted to the City Council and to the Association, and shall be advisory only. In making the findings of fact and recommendations, the Factfinder shall consider the following evidence submitted to him /her by the parties or obtained at his /her direction; the overall compensation in the current contract including direct salary and fringe benefits; the income available to the City and demands on that income; a comparison of wages, hours, and conditions of employment of Corpus Christi Firefighters with the wages, hours, and conditions of employment of other public and private employees performing similar services and with other employees generally in public and private employment in comparable communities and in Corpus Christi; the hazards of employment, physical, educational, and mental qualifications, job training and skills required of a Corpus Christi Firefighter; the cost of living in Corpus Christi relative to other communities; the rate of increase in the cost of living for the preceding twelve (12) month period using localized data to the fullest extent feasible; and any current national or state policies or guidelines with respect to compensation. It is agreed that in the interest of maintaining harmonious relations between the City and its Fire Fighters each party will make a sincere and earnest effort to resolve the dispute through the fact finding process. PART II It is agreed and understood that if the above fact finding procedure fails to result in an agreement, the City and the Association each retain any and all rights under Texas law, including but not limited to Chapter 174, irrespective of the inclusion of the fact finding process in this agreement. Any deadlines shall resume from the date of notice by either party, after the recommendation of the factfinder that the party has determined not to proceed further with a resolution under the fact finding process. ARTICLE XVII DURATION AND CONCLUDING PROVISIONS Section 1. Duration. This agreement shall be effective as of date of signing and shall remain in full force and effect until July 31, 244 2014, and thereafter until superseded by a new contract. 51 Section 2. Severabilitv. If any article or section of this agreement should be found invalid, unlawful, or unenforceable by reason of any existing or subsequent enacted legislation or by judicial authority, all other articles and sections of this agreement shall remain in full force and effect for the duration of this agreement. Section 3. Conflict with Civil Service Statute. To the extent that any of the provisions of the agreement conflict with Chapter 143 or any other State Civil Service Statute, the provisions of the agreement shall control and the applicability of such statutes are altered accordingly. Section 4. Copies of Agreement. The City shall provide sufficient copies of this agreement, without alteration, so that every employee covered herein shall have a copy. The City shall be responsible for the distribution of the copies of this agreement to members of the bargaining unit within 90 days of ratification and Union Negotiating Team members signatures. 52 CONCLUDING PROVISION IN WITNESS WHEREOF, we have executed this agreement this day of 21112. CITY OF CORPUS CHRISTI CORPUS CHRISTI FIREFIGHTERS ASSOCIATION, LOCAL UNION 936 [Aug c l 'MANAGER ald L. Olson, CITY Carlos Torres, PRESIDENT Negotiating Team Members Negotiating Team Members 53 54 Attachment 1 Fire Department's Alcohol and Drug Policy A. INTRODUCTION The Corpus Christi Fire Department has a responsibility to provide the highest level of public safety service attainable by a City. All employees of the Department share in this responsibility. The sensitive position of all firefighters involved in fire suppression and/or emergency medical services or other assigned duties requires assurance that there is no use of illegal or prohibited drugs. It also requires assurance that firefighters are not under the influence of alcohol while on duty. The City of Corpus Christi is also obligated under the Drug -Free Workplace Act of 1988 to provide and maintain a workplace free of illegal or prohibited drugs. B. EFFECTIVE DATE AND EMPLOYEES COVERED. The amendments provided by this policy become effective upon execution of the 2005 -2008 collective bargaining agreement between the City and the Union and will be incorporated into the Fire Department General Manual to be effective as of that date. This policy applies to all sworn personnel and cadets in the Fire Department, regardless of rank or assignment. All civilian personnel are covered under the citywide policy (H.R. 15.0). C. PROHIBITIONS: This policy prohibits: 1. The use, unauthorized possession, manufacture, distribution or sale of illegal drugs or drug paraphernalia. 2. The unauthorized use, possession, manufacture, distribution or sale of any controlled substance. 3. The presence of a detectable level of any illegal drug or unauthorized controlled substance or any metabolite of any such substance in the body upon being tested. 4. Being under the influence of alcohol or possessing alcohol while: (a) operating or occupying any city vehicle at any time; or (b) at any location during the firefighter's working hours including all lunch and break times. 5. Use of alcohol while off duty in violation of Civil Service Commission Rules and Regulations, and Chapter 143, Local Government Codes. 6. Unauthorized storage in any locker, desk, City vehicle or other repository on City premises or worksites of any illegal drug, drug paraphernalia, unauthorized controlled substances or alcohol. 55 7. Switching or adulterating any breath or urine sample submitted for testing. 8. Refusal to consent to testing and submit a specimen for testing when required under this policy. Consent is indicated by signing any form required by the City's Medical Advisor or laboratory collecting the specimen for testing. 9. Failure to pass any drug or alcohol test administered under this policy. 10. Refusal to consent to inspection of any desk, locker or other City property under a firefighter's control when requested by a supervisor or law enforcement officer 11. Arrest or conviction for any drug or alcohol - related crime committed at any time. 12. Failure to notify the Fire Chief within five (5) days after arrest or conviction for any drug or alcohol - related crime committed at any time. 13. Failure to report to his/her supervisor the use of any controlled substance prescribed by a physician or non - prescription drug which may impair the firefighter's ability to safely and fully perform his/her duties. 14. Failure to keep prescribed drugs in their original container which identifies the drug, date of prescription and prescribing physician or provide other proof of drug prescription and prescribing physician. 15. Failing to adhere to the provisions of any agreement executed by the firefighter which requires treatment or counseling for alcohol or drug abuse. 16. Refusing to sign a statement agreeing to comply with this Alcohol and Drug Policy. 17. Knowingly, taking prescribed medication in a manner or dosage other than as prescribed. D. DEFINITIONS UNDER THIS POLICY 1. ILLEGAL DRUG: includes heroin, cocaine, crack cocaine, cannabinoids (marijuana, hashish, THC), PCP (phencyclidine), LSD (lysergic acid diethylamide) and any other controlled substance not validly prescribed by a physician. 2. CONTROLLED SUBSTANCE: includes all of the above illegal drugs plus any other substances covered by Schedules I through V of the federal Controlled Substances Act (21 U.S.C. 801 et seq.) or the Texas Controlled Substances Act (Chapter 481, Texas Health and Safety Code). Controlled substances include amphetamines, barbiturates, methadone, benzodiazepines, methaqualone, morphine, codeine and anabolic steroids, A controlled substance is "unauthorized" if the firefighter does not have a valid prescription for that substance at the time of its use or possession. 56 3. CITY PREMISES OR WORKSITES: include all property, buildings, structures, job sites (where a firefighter is working), parking lots, and means of transportation owned, leased, or otherwise used for City business including motor vehicles, equipment, or machinery. An employee's vehicle is also included in this definition when being used to conduct City business or when parked during an employee's working hours, including lunch or break times; provided however, that personal vehicles parked on city property may only be inspected or searched by law enforcement personnel based on probable cause. 4. FAILING A DRUG TEST: is defined as a confirmation of initial test results which show positive evidence of the presence of an illegal drug or unauthorized controlled substance in the body. 5. PASSING A DRUG TEST: is defined as initial or confirmation test results which do not show evidence of the presence of an illegal drug or unauthorized controlled substance in the body. 6. DETECTABLE LEVEL: is defined as a quantity of a drug or drug metabolite equal to or greater than the detection limit for that substance as established by the testing laboratory, with the Chief's and Union's approval. E. DISCIPLINARY ACTION FOR VIOLATIONS OF THIS POLICY 1. The following violations of this policy shall be grounds for termination. a. unauthorized possession, use, manufacture, distribution or sale of any illegal drug, drug paraphernalia or controlled substance while on duty, in a City vehicle or on break time or, b. use without authorization of alcohol while on duty or while occupying any City vehicle or during break period, c. failing a drug test administered under this policy. 2. Any firefighter who violates any other provisions of this policy shall be disciplined up to and including termination. 3. No firefighter may be disciplined for reporting to duty when ordered to do so, if the firefighter has disclosed any consumption of alcohol during his/her off duty hours. F. DRUG TESTING Drug testing will be conducted using a laboratory certified by the Department of Health and Human Services (NIDA). Chain -of- custody procedures will be followed to account for the integrity of each urine sample by tracking its handling and storage from point of specimen collection to final disposition of the specimen. Each specimen submitted for testing under this policy shall be split and a sample shall be reserved for an independent analysis in the event of a positive result. 57 Each specimen submitted for testing under the testing provision of this policy with the exception of pre - employment, will be assayed for the presence of the following compounds. EMIT SCREEN GC -MS CONFIRMATION DETECTION LEVEL DETECTION LEVEL DRUG GROUP ng /ml* ng /ml* Amphetamine 1,000 500 Barbiturates 300 -1000 200 Benzodiazepines 300 200 Cocaine Metabolites 300 150 Marijuana 50 15 Metabolites 300 300 Methadone 300 200 Methaqualone 300 200 Opiate Metabolites 300 300 Phencyclidine 25 25 Propoxphene 300 200 *nanograms /milliliter The laboratory will also assay each specimen for signs of possible adulteration. Specimen alteration assays will consist of two or more of the following: * Creatinine * Chloride * Specific Gravity * Ph Pre - employment testing shall utilize the SAP 10. The initial test (also known as a screening test) shall be a enzyme immunoassay screen (EMIT) to eliminate "negative" urine specimens from further consideration. If the initial test indicates a positive result, a confirmation test by gas chromatography /mass spectrometry (GC/MS) will be used to confirm the presence of a specific drug or metabolite. The confirmation test shall be independent of the initial test and uses a different technique and chemical principle from that of the initial test in order to ensure reliability and accuracy. For classes of drugs where GC/MS is not an approved confirmation procedure, an alternative confirmation test will be used. 58 The Chief shall designate a Testing officer with full authority to order personnel compliance to oversee the integrity of the drug testing procedures and general administration of this policy. The Testing Officer's specific responsibilities and duties shall be established by the Chief. Drug testing under this policy will include: 1. Pre - employment: All job offers are contingent upon passing a drug test. Applicants who fail a drug test will be ineligible to apply for employment in the future. 2. Post - accident: Any firefighter, up to and including the Fire Chief, who, while operating a City vehicle, is involved in an accident, shall submit to drug and alcohol testing. The test shall be performed as soon as possible. 3. Reasonable Suspicion: If individualized reasonable suspicion exists that any firefighter has used or possessed an illegal drug or unauthorized controlled substance or has violated the alcohol - related provisions of this policy, the Chief may order the firefighter to submit a urine and/or blood specimen for alcohol and/or drug testing. 4. Random Testing: The Fire Department shall be divided into 45 groups consisting of the following work sites or groups: Administrative Offices (Includes the City Manager, Human Resources Director, and Fire Chief) Training Center Fire Prevention & Arson Investigation Each Station will consist of 3 separate groups (A, B, & C shifts) Three additional groups will be added upon opening of a new station. Random drug testing shall occur by the random selection of one of the above work groups or sites. The testing agency shall provide a computer -based random selection of the group to be tested each month. Two groups will be selected and tested each month. The Chief, or designee, will notify the employees selected for a test within no more than three (3) hours of the testing. Any firefighter either permanently or temporarily assigned, including members working trades for regular firefighters, shall be subject to testing. All testing will be conducted on site except for personnel assigned to Training, Fire Prevention & Arson, and Administration. Personnel not tested on site will be required to report to a designated lab within 3 hours of notification by their supervisor. Employees on vacation, sick leave, other leave, or on City business outside the city, will not be notified or have to take the test. G. COMPLIANCE WITH POLICY 1. Applicants and firefighters subject to testing will have the opportunity to submit a list of prescription and non - prescription drugs they have used in the last thirty (30) days and to explain 59 the circumstances surrounding the use of such drugs to the MRO before a decision regarding test results is made. 2. Any firefighter who has agreed in connection with a prior violation of this policy to submit to random testing for a prescribed period of time (maximum of one (1) year) may be tested as described in the agreement signed by the firefighter. 3. A firefighter with an alcohol content of .04% will be presumed to be under the influence of alcohol for purposes of this policy. 4. If the Medical Review Officer's (MRO) review of drug test results indicates a legitimate medical explanation for the confirmed positive test result, no further action will be taken against the firefighter and an applicant will be eligible for hire. If the MRO's review determines there is no legitimate medical explanation for the confirmed positive test result, the firefighter will be subject to disciplinary action up to and including discharge upon the first offense. H. MEDICAL REVIEW OFFICER The Medical Review Officer (MRO) for the City of Corpus Christi will be a City's Medical Advisor or any physician designated by the City Manager who is a licensed physician with knowledge of drug abuse disorders and certified as a Medical Review Officer for drug testing. The MRO shall review all drug testing results he/she receives and interpret confirmed positive test results to determine if there is an alternative medical explanation of the confirmed positive result. I. ALCOHOLISM AND DRUG ADDICTION While occasional or "social" use of drugs and alcohol can become detrimental to the workplace and to personal health, we recognize that alcoholism and drug addiction are medical disorders which can be treated. The City of Corpus Christi believes it has a responsibility to provide assistance to our employees through the Employee Assistant Program, but the initiative in seeking such help is the responsibility of the firefighter. Firefighters who voluntarily seek diagnosis and accept treatment for alcohol or drug- related problems before the problem becomes evident, will be offered rehabilitation help on a strictly confidential basis using the leave policies currently available for other health - related problems. Whether voluntary or mandatory rehabilitation is required, these costs are the responsibility of the firefighter. Medical Plan Insurance may be used to the extent provided under the individual's health insurance coverage. If misconduct or declining job performance brings illegal or non- prescribed drug or alcohol abuse problems to light, the firefighter will be subject to appropriate disciplinary action. 60 J. IMPLEMENTATION OF DRUG -FREE AWARENESS PROGRAM The Drug -Free Awareness Program will provide an ongoing education effort for the firefighters to prevent and eliminate drug and alcohol abuse that may affect the workplace. This program will cover: 1. The dangers of alcohol and drug abuse in the workplace; 2. This Alcohol and Drug Policy; 3. The availability of treatment and counseling for firefighters voluntarily seeking such counseling through the Employee Assistance Program; and 4. The discipline which will be imposed for violations of this policy. Supervisors are the "keys" to successfully implementing this policy. Initial and ongoing supervisory training will be mandatory for supervisors and will cover the following areas: 1. Identifying and documenting job performance and on-the-job behavior which may reflect the impact of personal problems; 2. Identifying evidence of on-the-job use or presence of alcohol or drugs; 3. Procedure for referral of troubled firefighters to the Employee Assistance Program; 4. Procedure for testing firefighter suspected of violating this policy; 5. Constructive confrontation techniques; 6. Orientation on drug procedures and technology; and 7. Procedures for conducting workplace inspections. Cadets will be trained on this Policy at the Academy and new supervisors will be trained through recurring sessions provided on the Training calendar. K. RECORDS PROCEDURES 1. RELEASE OF INFORMATION: Requests for employment verification or references for an individual terminated under this policy shall be forwarded to the Human Resources Department for response. For Texas Employment Commission hearing on granting unemployment insurance, the City will cite a rules violation as the reason for termination and will supply a copy of the letter of termination which states specific reasons. Where there is doubt about the release of information, the Legal Department shall be consulted for guidance. 2. REPORTING CONVICTION TO FEDERAL AGENCY: In compliance with the Drug Free Workplace Act, the Human Resources Department will notify the appropriate federal agency within ten (10) days after receiving notice from the firefighter of a conviction under criminal drug statutes. 61 APPENDIX "A" DUES DEDUCTION AUTHORIZATION INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL UNION NO. 936 Dues Title Code Payroll No. Employee No. Code No. Name (Last) (First) (MI) Social Security No. Address Zip Code I hereby authorize the City of Corpus Christi to deduct, each pay period, the sum of $ as certified by the International Association of Firefighters, Local 936, as the current rate of dues or an amount as may hereafter be established by the International Association of Firefighters, Local 936, as dues. This deduction is to be forwarded directly to the International Association of Firefighters, Local 936. The authorization of this deduction is entirely voluntary on my part. I understand that the City of Corpus Christi will be obligated to forward to the Association only those sums actually deducted and will not be liable for damages to me for failure to deduct any authorized sum for any reason. Signed Date 62 APPENDIX "B" SPECIAL ASSESSMENT DEDUCTION AUTHORIZATION INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL UNION NO. 936 Assessment Title Code Payroll No. Employee No. Code No. Social Name Security No. (Last) (First) (MI) Address Zip Code I hereby authorize the City of Corpus Christi to deduct a special assessment in the sum of $ as certified by the International Association of Firefighters, Local Union No. 936, for the express purpose of . The authorization of this special assessment deduction is entirely voluntary on my part. I understand that the City of Corpus Christi will be obligated to forward to the Association only those sums actually deducted and will not be liable for damages to me for failure to deduct any authorized sum for any reason. Signed Date 63 APPENDIX "C" TERMINATION OF REGULAR OR SPECIAL DUES DEDUCTION AUTHORIZATION INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL UNION NO. 936 Dues Title Code Payroll No. Employee No. Code No. Social Name Security No. (Last) (First) (MI) Address Zip Code I hereby terminate the authorization previously executed by me on (date) for dues deduction for the International Association of Firefighters, Local Union No. 936, and request that the City make no further ( ) regular or ( ) special dues deductions under said authorization. This termination of dues deduction is entirely voluntary on my part, and I understand that the City of Corpus Christi will not be liable for failure to promptly effectuate this termination for any reason. Signed Date 64 APPENDIX "D" THE FORMULAS DESCRIBED BELOW ARE A CONCEPTUAL DESCRIPTION OF THE CALCULATIONS AND DO NOT DESCRIBE THE EXACT COMPUTER PAYROLL PROCESS. A. CALCULATING FIRE SUPPRESSION OVERTIME PAY BASED ON 27 DAY WORK PERIOD In a 52 week, 365 day year, each suppression firefighter is scheduled to work a 24 hour shift every three days which equates to nine 24 hour shifts in each 27 day work period. Using the FLSA 7(k) exemption, overtime for cycle hours is due for hours actually worked from 204 to 216 hours in a 27 day work period. The "Add Pays" included in the calculations below are applicable longevity, assignment and certification pays listed in . - _ Article V WAGES in the " Auhust 1. 2011 to 2014 Collective Bargaining Agreement bet ;een the Cita of Corpus Christi and the Corpus as per the 1989 overtime grievance resolution plus education incentive pay, the EMS supervisory officers pay, and the Assistant EMS Director pay when applicable. 1. TO COMPUTE CYCLE AND HOLIDAY OVERTIME PAY: Annual Base Salary + Annual "Add Pays" 26 Pay Periods Pay Period Salary w/ "Add Pays" 80 Hours Per Contract Pay Period Salary w/ "Add Pays" 108 Hours Pay Period Salary w/ "Add Pays" Hourly Cycle/Holiday Rate Dock Rate (Regular rate) (Hourly Cycle/Holiday Rate) x (1.5) - (Dock Rate) = Cycle/Holiday Overtime Rate (Cycle/Holiday Overtime Rate) x (No. of Cycle Hours Worked) = Cycle Overtime Pay (Cycle/Holiday Overtime Rate) x (No. of Holiday Hours Worked) = Holiday Overtime Pay 2. TO COMPUTE OTHER OVERTIME PAY(HOLDOVER AND CALLBACK): Annual Base Salary + Annual "Add Pays" 26 Pay Periods = Pay Period Salary w/ "Add Pays" Pay Period Salary w/ "Add Pays" 90 Hours Per Contract = Hourly Call Back/Holdover Rate (Hourly Call Back/Holdover Rate) x (1.5 ) = Call Back/Holdover Overtime Rate (Call Back/Holdover Overtime Rate) x (Call Back Hours)# = Call Back Overtime Pay (Call Back/Holdover Overtime Rate) x (Holdover Hours) = Holdover Overtime Pay 65 # Call Back is for time worked or 3 hour minimum as per contract. B. CALCULATING OVERTIME PAY FOR TRAINING/PREVENTION & 40 HOUR EMPLOYEES 1. TO COMPUTE HOLIDAY OVERTIME PAY: Annual Base Salary + Annual "Add Pays" 26 Pay Periods Pay Period Salary w/ "Add Pays" 80 Hours per Pay Period (Dock Rate) x (1.5) - (Dock Rate) Pay Period Salary w/ "Add Pays" Dock Rate (Regular Rate) Holiday Overtime Rate (Holiday Overtime Rate) x (No. of Holiday Hours Worked) = Holiday Overtime Pay 2. TO COMPUTE OTHER OVERTIME PAY FOR TRAINING/PREVENTION & 40 HOUR EMPLOYEES ( CALLBACK ): Annual Base Salary + Annual "Add Pays" 26 Pay Periods Pay Period Salary w/ "Add Pays" Pay Period Salary w/ "Add Pays" 80 Hours Per Pay Period = Dock Rate (Regular rate) (Dock Rate) x (1.5) = Call Back Overtime Rate (Call Back Overtime Rate) x (Call Back Hours)# Call Back Overtime Pay # Call Back is for time worked or 3 hour minimum as per contract. 66 APPENDIX "E" CALCULATING "DRAG -UP PAY" (VACATION AND SICK LEAVE) AND VACATION LEAVE SELL BACK FOR FIRE EMPLOYEES Pursuant to the Arbitration Award of Arbitrator Don B. Hays, dated October 19, 1988, in AAA Case No. 71 390 0187 88, Corpus Christi Firefighters Association and City of Corpus Christi, the Collective Bargaining Agreement on Wages overrides the statutory calculation of payment of accrued sick leave on separation. The components of wages contractually agreed to be used in determining the hourly rate for payment of "drag -up pay" for eligible accrued vacation and sick leave are applicable monthly base salary, longevity, certification and assignment pays listed in Article V WAGES of the August 1, 2004 ?u1\ 31, 20 33 August 1, 2011 to !u1 31 2014 Collective Bargaining Agreement bet;een the City, of Corpus Christi and the Corpus Christi titers' Association plus the EMS supervisory officers pay and the Assistant EMS Director pay when applicable and excludes any other pays in any other Articles of that or subsequent Agreements. The Award also requires the city to use the average 54 hours per week for 24 hour shift employees to determine the hourly rate for drag -up pay. The formula below shall also be used to compute the amount paid for Vacation Leave Sell Back under Article 12 Section 8. 1. TO COMPUTE 24/48 HOUR SHIFT EMPLOYEE "DRAG -UP PAY" AND VACATION LEAVE SELL BACK HOURLY RATE: (Annual Base Salary) + (Annual Longevity, Assignment, and Cert ification Pay) * = Hourly Drag Up Rate (26 Pay Periods) x (54 hours /week) x (2 weeks /pay period) 2. TO COMPUTE 40 HOUR EMPLOYEE "DRAG -UP PAY" AND VACATION LEAVE SELL BACK HOURLY RATE: (Annual Base Salary) + (Annual Longevity, Assignment, and Cert ification Pay) * = Hourly Drag Up Rate (26 Pay Periods) x (40 hours /week) x (2 weeks /pay period) * Applicable wage components listed in Wa Article V WAGES, Section 1 -4, in Jule 31, 2111 flat At €01 st 1, 2011 to )u.1e% 31� 2014 Collective Bargaining Agreement between the Citv or Corpus Cltristi and the Corpus Christy l irefi htcrs' Association plus applicable EMS supervisory officers pay and Assistant EMS Director pay as described above. 67 APPENDIX "F" Title: Call Back Procedures Corpus Christi Fire Department Standard Operating Procedures No. 101.09 I. PURPOSE: To establish standard procedures and guidelines for utilizing the Fire Department call-back list. IL SCOPE: These instructions apply to call back situations as applicable. III. DEFINITIONS: A. Daily Staffing List: A list composed of firefighters needed to fulfill the Daily Staffing levels of normally assigned units. B. Daily Eligibility List: A daily list composed of the top eligible firefighters from the Daily Staffing List. C. Special Events List: A list composed of firefighters needed to fulfill positions for planned events. D. Special Events Call Back: Planned, anticipated events that allow the Department adequate time for scheduling. Examples may include such situations as jury duty, parades, etc. E. Holdover: A requirement for a firefighter to remain on duty after the completion of their normal shift for the purposes of determining morning staffing levels and completing those assignments. Additionally, a "holdover" may be used to augment staffing during promotional exams, and other short term assignments. F. Emergency Call Backs: A mandatory requirement to report to work in the event of an emergency or other situation as declared by the Fire Chief or his/her designee. Recognizing that both the citizens and on duty firefighters at the scene need immediate assistance, the Department may utilize any means necessary to initiate this assistance. Firefighters called in on an emergency call back will not lose their place on any call back list. IV. RESPONSIBILITY: A. It shall be the responsibility of the Fire Chief or his/her designee to ensure that this policy is adhered to when initiating a Call Back. B. Fire Department personnel have the responsibility and duty to report to work when contacted and advised that an emergency exists or has been declared by the Fire Chief, or his representative. 68 C. Failure of an employee to respond to a call back during an emergency without being excused by the Fire Chief, First Assistant Chief or the Shift Commander may result in disciplinary action being brought against said employee. V. CALL BACK LISTS: A call back list will be created for "Special Events" and a separate list for "Daily Staffing ". A firefighter's position on the Special Events List will not affect his/her position on the Daily Staffing List or vice versa. (Example: a firefighter is called back for a parade for three hours and consents to work. He /she remains in his/her position on the Daily Staffing List) VI. GENERAL: A. Each call back list shall include the name, rank, certifications (EMT, Paramedic, etc) and qualifications (assigned Rescue, HazMat, etc.) of all members of the shift. Firefighters who do not wish to be assigned to the Special Events List shall notify the Fire Chief in writing. B. Each callback list shall contain firefighters' permanent home telephone numbers. Pagers or cell phone are not permitted. The Department will not leave messages on answering machines, nor will the Department relay messages through a third party. C. Firefighters shall be called back in numerical order from the first position on a call back list to the last position on the list. After 8:00 a.m. vacancies will be filled by calling back a firefighter to complete the shift at the station in which the vacancy occurs. This will be accomplished by calling back the first firefighter on the list that is able to fill a position in the station in which the vacancy occurs, which will be a firefighter of equal or lower rank than the vacant position. Once a firefighter has been called back and works overtime, or declines a Special Events callback, his/her name shall be placed in the last numerical position on the applicable list. D. A firefighter reassigned to another shift shall be added to the call back list for that shift in the same numerical position held on the list before reassignment. In the event that more than one such firefighter is reassigned with the same numerical position on the applicable callback list, placement shall be by lot. A probationary firefighter will be placed in the last numerical position on the applicable callback list for his/her assigned shift, provided that placement order at the bottom of the list shall be by lot. E. For call backs that require staffing by specific rank, certification, or qualification, only firefighters on the applicable callback list who possess the needed rank, certification, or qualifications shall be eligible for the callback. F. For EMS callbacks, Firefighter 1 Paramedics, and FFII EMT and EMT -P's assigned to EMS and are qualified as per Article VI, Section 1 of the Collective 69 Bargaining Agreement shall be considered eligible. Firefighter I Paramedics who have served five years as a FFII EMS will not be called back for EMS staffing. Medic unit staffing shall include at least one paramedic. G. FFII EMS personnel routinely perform fire suppression duties (tailboard) in addition to EMS duties. For purposes of this policy, FFII EMS personnel shall be utilized in either position, however, FFII EMS personnel, when performing a call back, shall not be assigned to a FFII Engineer position. H. Personnel who are not immediately available to answer the telephone will be considered "unable to contact ". L Firefighters who on sick leave will not be eligible for overtime until reporting back to duty, or to other scheduled leave (vacation, Kelly, PL, etc.). VII. DAILY STAFFING GUIDELINES: A. This procedure will be used when the Fire Chief or his designee determines it is necessary to utilize the call back list to maintain the daily staffing needs of the Department. This list shall be a separate list from the Special Events list. B. To maintain daily staffing levels, this procedure will utilize personnel in their numerical order on the Daily Staffing List, and not rank for rank. The Fire Chief' s designee will make every attempt to utilize the list in the numerical order, with the exception of situations where the firefighter would be required to perform in a lower rank except as noted in paragraph VI -G. C. It is the responsibility of each firefighter to be adequately prepared to immediately report to duty when called back for Daily Staffing. If the firefighter is unable to immediately report to duty (upon being properly relieved,) to the assigned station, the firefighter shall be considered to have refused and his/her name shall be placed at the bottom of the Daily Staffing List. D. Firefighters who are called in for an overtime assignment must report to, and complete the assignment in person. Firefighters who are on approved leave shall not be considered for Daily Staffing callback. Standby periods for up to four hours are acceptable, provided that the firefighter that accepts the callback assignment is available to report to the assigned Station immediately. E. Firefighters may not perform the duties of those in a lower rank except as noted in paragraph VI. -G., i.e., a Captain will not be called in to fill a FFI assignment, etc. F. Firefighters who have been previously scheduled to "act" may be reassigned to accommodate a firefighter who is called back for daily staffing. Reassignment is at the discretion of the Fire Chief's designee. G. An EMS Supervisor vacancy shall be filled by using a Firefighter II EMS assigned to the shift and approved to act as EMS Supervisor. 70 H. Firefighters shall not be assigned to a medic unit when called in for daily staffing call back if the firefighter has worked a twenty four hour shift on a medic unit immediately preceding the call back. VIII. Daily Staffing Procedure: Firefighters shall have the right to refuse assignment for Daily Staffing without jeopardizing their position on the call back list except in situations as listed below. A. As per the Collective Bargaining agreement, firefighters should notify the Shift Commander on duty, immediately when the employee knows he /she will be absent on account of illness. If such determination is made by the employee past midnight, it is acceptable to report the illness between 6:30 a.m. and 7:00 a.m. In all cases, a report of illness should be made no later than 7:00 a.m. B. During each shift the Shift Commander shall make arrangements to fill anticipated, scheduled vacancies for the following shift by reassigning firefighters, and /or assigning firefighters to "act ". This list will be left available for the off -going Shift Commander to utilize for call back. C. At morning roll call, the Station Captain shall furnish the Shift Commander with the names of firefighters under his/her command who are declining to work overtime the following shift. The Shift Commander shall publish a list of the top eligible firefighters available for callback for Daily Staffing prior to noon. The number of firefighters on the list will be dependent on the anticipated needs of the Department. The Shift Commander shall provide the names of ten firefighters above the number anticipated to be needed. For example, if the shift is anticipated to be three firefighters short, the Shift Commander shall publish a list of the top thirteen eligible firefighters. These firefighters shall remain on duty until 8:00 a.m. so as to be available for callback assignment. D. Once the Daily Eligibility List is posted and a change occurs in the firefighter's eligibility status, he /she must contact the Shift Commander as soon as possible; but no later than 10:00 p.m. A change in condition, or refusal that occurs between the hours of 10:00 p.m., and 8:00 a.m. will result in the firefighter's name being placed at the bottom of the Daily Staffing list (the firefighter will be placed at the bottom of the list if the number of needed callbacks meets or exceeds his/her number /position on the list. This cannot be determined until after sick calls have been taken). E. Top eligible firefighters who previously declared available for callback and have not remained available at their station when contacted by the Shift Commander will be placed at the bottom of the list. The morning announcement of "0800 morning roll call" will serve as the official time for purposes of being placed at the bottom of the Daily Staffing List. In the event "8:00 a.m. Roll Call" is not announced at the appropriate time, the Station Captain should contact the District Chief. 71 Firefighters on the Daily Eligibility List who have remained available at their station after 08:00 a.m. may be contacted for callback, if a staffing need arises. If contacted after 8:00 a.m., these personnel may reject the assignment without loss of position on the Daily Staffing list. F. Should a vacancy occur following the 8:00 a.m. roll call, the Shift Commander may attempt to contact those firefighters available at their stations for Call Back. If unsuccessful, the Special Events list should be used. G. The Shift Commander shall make every effort to notify personnel that they will be used on a callback as early as possible. H. The Special Events List shall be utilized to fill vacancies that occur after 8:00 a.m., (except as noted in VIII.F) L Firefighters shall be called back in their numerical order on the call-back list and not rank for rank. IX. SPECIAL EVENTS LIST: A. Special events will include callbacks for events that allow the Department adequate time for scheduling. This will include jury duty, parades and other planned events. This list shall also be used for staffing regularly assigned apparatus after 8:00 am., (except as noted in VIII.F) B. Once a firefighter is called back for overtime on a scheduled event, or refused an offer for callback, his/her name will be placed at the bottom of the Special Events List. However, his/her name will remain unaffected on the Daily Staffing List. C. Firefighters will be called back for Special Events in a timely manner whenever possible. To accommodate the needs of the Department and the needs of the Firefighter, the call back will be scheduled as far in advance as practical. Additionally, there is no requirement to be on duty for a complete shift to be called back for a future Special Event. X. DIRECTIONS FOR COMPLETING CALL BACK LISTS: A. The person making the calls will enter the correct code; date (mm- dd -yy), time, and his/her own initials. Actual time contacted shall be noted. B. The Fire Chief's designee will ensure that the list is updated after each use and will provide an updated list to the First Assistant Chief and to the Union within 48 hours. 72 C. The OFF -GOING SHIFT is the shift which shall be contacted first during a CALL BACK. D. On duty shift Shift to Contact A C B A C B E. Each Special Event requiring a call back is a new incident and will require beginning at the top of the list. This will insure that firefighters who had previously been contacted/or attempted to be contacted, but remained in their position on the list are first called. Starting at the top, contact each firefighter who does not have a C.R. (refused), or a C.W. (worked) by their name. In the event additional firefighters are needed during the shift for Daily Staffing, the Shift Commander shall not start over at the top of the Special Events list, but shall begin after the last contacted firefighter. F. During an emergency, personnel living outside the city limits may be excluded from a call back as per Article IV, Section 4 of the Collective Bargaining Contract. G. The following codes should be used when noting the status of a contact attempt: CODE EXPLANATION REMAIN IN POSITION ON LIST 1. C.R. Contacted— refused yes, Daily Staffing no, Special Events 2. C.W. Contacted, and worked no 3. C.L. Contacted, but on leave yes 4. I.P.N. Incorrect phone # yes 5. U.C. Unable to contact yes 6. C.T. Contacted, but on Trade yes 7. C.U. Contacted, unable yes 73 • Definition, Leave: A firefighter is off work due to any scheduled leave including sick, vacation, personal, kelly, injury, training or other approved scheduled leave. • Definition: "Contacted, Unable" shall indicate the firefighter cannot accept the callback assignment due to previously assigned official Department business, i.e., schools, etc. • The Fire Chief shall be notified at any time a firefighter refuses to report to duty as ordered for an emergency callback. • Definition of refused: The firefighter cannot report to work for personal reasons, and the firefighter is not on an approved leave as described above. H. To facilitate callbacks requiring use of EMS certified personnel, a code shall be placed next to the rank of each firefighter on the list: a. "P" shall designate Firefighter I and Firefighter II EMS personnel who are qualified as per Article VI, Section 1 of the Collective Bargaining Agreement. In addition, FFI's who have previously served five years as a FFII EMS will not be required to work an EMS callback, and will not have a "P" designation. b. "E" shall designate FFII EMT's who are qualified as per Article VI, Section 1 of the Collective Bargaining Agreement. 74 Date: CASE NO.: APPENDIX "G" GRIEVANCE FORM Name Title I have discussed this complaint with my supervisor, and received his verbal answer on (date) . Because this answer is unacceptable to me, I wish to file my grievance complaint to Step 2. 1. Brief Statement of Grievance and the Facts or Events on which Grievance is Based: 2. Section(s) of contract alleged to be violated: 3. Remedy or adjustment sought by Grievant/Union: Grievant/Union Grievance Committee Chairman Date (Chairperson)/Union President's Signature Union Grievance Committee Chairman (Chair- Date Received person) /Grievance Committee Member Fire Chief or Designee Date Received *Submit all prior Grievance and Response Forms together at each Step on the Grievance Process 75 CASE NO.: RESPONSE OF UNION GRIEVANCE COMMITTEE STEP2 Name Title On day of , 200 , the Grievance Committee met to consider the attached Grievance and made the following determination. This is a valid grievance and should proceed to Step 3. No valid grievance exists and no further proceeding is necessary. Union Grievance Committee Chairman Date (Chairperson) /Grievance Committee Member Fire Chief or Designee Date Received *Submit all prior Grievance and Response Forms together at each Step on the Grievance Process. 76 CASE NO.: RESPONSE OF FIRE CHIEF STEP 3 Name Title Response: (Attach additional pages if necessary) Fire Chief Union Grievance Committee Chairman (Chairperson) /Grievance Committee Member Date Date Received The Grievance is not resolved at Step 3 and is submitted by the Union Grievance Committee to the City Manager for a Response at Step 4. City Manager's Office Date Received *Submit all prior Grievance and Response Forms together at each Step on the Grievance Process. 77 CASE NO.: RESPONSE OF CITY MANAGER STEP 4 Name Title The attached Grievance being received on , 200__, the following is the City Manager's Response: City Manager Date Grievance Committee Chairman Date Received (Chairperson) /Grievance Committee Member *Submit all prior Grievance and Response Forms together at each Step on the Grievance Process. 78 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: August 21, 2012 TO: Ronald L. Olson, City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP ©cctexas.com (361) 826 -3227 Authorization for the Issuance of Utility System Revenue Bonds CAPTION: A. Motion authorizing the appointment of M. E. Allison, & Co., as Financial Advisor for one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000. B. Ordinance authorizing the issuance of one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000, pursuant to the delegation provisions set forth herein; making provisions for the payment and security thereof of a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the forms, terms, conditions, and resolving other matters incident and related to the issuance, sale and delivery of each series of bonds; including the approval and distribution of one or more Official Statements pertaining thereto; authorizing the execution of one or more paying agent /registrar agreements, one or more escrow agreements, and one or more purchase contracts; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; establishing the City's intention to reimburse itself from the proceeds of any such series of bonds for the prior lawful expenditure of funds to construct various City improvements; delegating the authority to the Mayor and certain members of the City staff to execute certain documents relating to the sale of each series of bonds; and providing an effective date. PURPOSE: The City plans on issuing up to $75,000,000 of Utility System Revenue Bonds to fund utility projects outlined in Year 1 of the Fiscal Year 2013 Capital Improvement Plan. BACKGROUND AND FINDINGS: Part A: Issuance of bonds requires utilization of a financing team which is made up of three parts: the financial advisor, bond counsel, and the underwriting syndicate. Part A of this agenda item authorizes the appointment of M. E. Allison & Co., Inc. as financial advisor for this transaction. See Exhibit A for the Financial Advisor's fee schedule. Fulbright & Jaworski L.L.P. is currently under contract with the City to serve as the City's bond counsel and will serve as the second part of our financing team. The third part of the financing team is the underwriters, and selection of the syndicate of underwriters from the City's pool of approved underwriters is being recommended for delegation to the Mayor, City Manager, Assistant City Manager, and Director of Financial Services in Part B of this agenda item. Part B: With the beginning of the new fiscal year, it is the City's intent to fully fund the utility projects outlined in Year 1 of the Fiscal Year 2013 Capital Improvement Plan (CIP) with Utility System Revenue Bonds. Included in these bonds will be funding for capital expenditures related to the acquisition, construction, equipping, or furnishing of any project or facility related to the City's Combined Utility System. Because of the fluctuating conditions in the municipal bond market, our financial advisor has recommended that the City Council delegate to the Mayor, City Manager, Assistant City Manager for General Government and Operations Support, and the Director of Financial Services (the "Delegated Officials ") the authority to effect the sale of the bonds subject to the following parameters: (1) the principal amount of each series of bonds may not exceed $75,000,000; (2) none of the bonds shall bear interest at a rate greater than 7% per year, and (3) the bonds must have a rating issued by a nationally recognized municipal securities ratings organization in one of the four highest rating categories. The City's bond counsel has confirmed that the City can delegate the sale of the bonds to the Delegated Officials in the manner outlined above pursuant to the authority contained in Chapter 1371, as amended, Texas Government Code. In addition, this ordinance gives the City the authority to reimburse itself from bond proceeds for qualifying expenditures. In order to adhere to the time schedules to insure timely completion of the CIP projects, the City must move forward with contracts prior to the completion of the final closing on the bonds. These amounts will not exceed $75,000,000. For the City to be eligible for reimbursement of any expenditure incurred prior to the bond sale, the City must declare its intent to reimburse itself for payments made prior to the bonds being sold. This action must meet specific U. S. Treasury Regulations and requires approval by the City Council. ALTERNATIVES: An alternative funding mechanism would be to use the Commercial Paper Program as interim financing for the utility projects. However, it is the City's intent to discontinue the use of the Commercial Paper Program and issue utility revenue bonds at the beginning of the fiscal year instead to better manage the expenditures related to the CIP utility projects. OTHER CONSIDERATIONS: n/a FINANCIAL IMPACT: ❑ Not Applicable ❑ Operating Expense X Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budget - $75,000,000 - $ 75,000,000 Encumbered /Expended amount of (date) - - - This item - $75,000,000 - $ 75,000,000 BALANCE - - - - FUND(S): CIP Funds COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the motion and ordinance as presented. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON-EMERGENCY: Issuance of municipal obligations are exempted from the City's charter provision regarding dual reading and /or emergency adoption provisions pursuant to the provisions of Section 1201.028, as amended, Texas Government Code. DEPARTMENTAL CLEARANCES: • Bond Counsel • Legal Department LIST OF SUPPORTING DOCUMENTS: Exhibit A — Financial Advisor Fee Schedule Ordinance cc: Lisa Aguilar, Assistant City Attorney Eddie Houlihan, Assistant Director of Management and Budget Margie C. Rose, Assistant City Manager (�. slaw. Jac. 1 NVESTMENT BANKERS FINANCIAL ADVISORY FEE SCHEDULE GENERAL OBLIGATION BONDS More than And Not More than $ $ 250,000 $7,500 plus $20.00 per $1,000 for all over $150,000 250,000 350,000 $9,500 plus $10.00 per $1,000 for all over $250,000 350,000 500,000 $10,500 plus $8.00 per $1,000 for all over $350,000 500,000 700,000 $11,700 plus $7.00 per $1,000 for all over $500,000 700,000 1,000,000 $13,100 plus $6.00 per $1,000 for all over $700,000 1,000,000 1,500,000 $14,900 plus $5.00 per $1,000 for all over $1,000,000 1,500,000 5,000,000 $17,400 plus $3.00 per $1,000 for all over $1,500,000 5,000,000 10,000,000 $27,900 plus $1.65 per $1,000 for all over $5,000,000 10,000,000 20,000,000 $36,150 plus $1.00 per $1,000 for all over $10,000,000 20,000,000 No Limit $46,150 plus $0.85 per $1,000 for all over $20,000,000 REVENUE BONDS AND COMBINATION TAX & REVENUE CERTIFICATES OF OBLIGATION In the event the Bonds to be issued are Revenue Bonds or Combination Tax and Revenue Certificates of Obligation, Refunding, Direct Pay Subsidy or Lease Purchase Obligations, the fee shall be the amount computed from the above schedule, plus 25 %. EXHIBIT A AGENDA MEMORANDUM Future Item for the City Council Meeting of August 14, 2012 Action Item for the City Council Meeting of August 21, 2012 DATE: August 21, 2012 TO: Ronald L. Olson, City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP ©cctexas.com (361) 826 -3227 Authorization for the Issuance of Utility System Revenue Bonds CAPTION: A. Motion authorizing the appointment of M. E. Allison, & Co., as Financial Advisor for one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000. B. Ordinance authorizing the issuance of one or more series of City of Corpus Christi, Texas Utility System Revenue Bonds, in an aggregate principal amount not to exceed $75,000,000, pursuant to the delegation provisions set forth herein; making provisions for the payment and security thereof of a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the forms, terms, conditions, and resolving other matters incident and related to the issuance, sale and delivery of each series of bonds; including the approval and distribution of one or more Official Statements pertaining thereto; authorizing the execution of one or more paying agent /registrar agreements, one or more escrow agreements, and one or more purchase contracts; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; establishing the City's intention to reimburse itself from the proceeds of any such series of bonds for the prior lawful expenditure of funds to construct various City improvements; delegating the authority to the Mayor and certain members of the City staff to execute certain documents relating to the sale of each series of bonds; and providing an effective date. PURPOSE: The City plans on issuing up to $75,000,000 of Utility System Revenue Bonds to fund utility projects outlined in Year 1 of the Fiscal Year 2013 Capital Improvement Plan. BACKGROUND AND FINDINGS: Part A: Issuance of bonds requires utilization of a financing team which is made up of three parts: the financial advisor, bond counsel, and the underwriting syndicate. Part A of this agenda item authorizes the appointment of M. E. Allison & Co., Inc. as financial advisor for this transaction. See Exhibit A for the Financial Advisor's fee schedule. Fulbright & Jaworski L.L.P. is currently under contract with the City to serve as the City's bond counsel and will serve as the second part of our financing team. The third part of the financing team is the underwriters, and selection of the syndicate of underwriters from the City's pool of approved underwriters is being recommended for delegation to the Mayor, City Manager, Assistant City Manager, and Director of Financial Services in Part B of this agenda item. Part B: With the beginning of the new fiscal year, it is the City's intent to fully fund the utility projects outlined in Year 1 of the Fiscal Year 2013 Capital Improvement Plan (CIP) with Utility System Revenue Bonds. Included in these bonds will be funding for capital expenditures related to the acquisition, construction, equipping, or furnishing of any project or facility related to the City's Combined Utility System. Because of the fluctuating conditions in the municipal bond market, our financial advisor has recommended that the City Council delegate to the Mayor, City Manager, Assistant City Manager for General Government and Operations Support, and the Director of Financial Services (the "Delegated Officials ") the authority to effect the sale of the bonds subject to the following parameters: (1) the principal amount of each series of bonds may not exceed $75,000,000; (2) none of the bonds shall bear interest at a rate greater than 7% per year, and (3) the bonds must have a rating issued by a nationally recognized municipal securities ratings organization in one of the four highest rating categories. The City's bond counsel has confirmed that the City can delegate the sale of the bonds to the Delegated Officials in the manner outlined above pursuant to the authority contained in Chapter 1371, as amended, Texas Government Code. In addition, this ordinance gives the City the authority to reimburse itself from bond proceeds for qualifying expenditures. In order to adhere to the time schedules to insure timely completion of the CIP projects, the City must move forward with contracts prior to the completion of the final closing on the bonds. These amounts will not exceed $75,000,000. For the City to be eligible for reimbursement of any expenditure incurred prior to the bond sale, the City must declare its intent to reimburse itself for payments made prior to the bonds being sold. This action must meet specific U. S. Treasury Regulations and requires approval by the City Council. ALTERNATIVES: An alternative funding mechanism would be to use the Commercial Paper Program as interim financing for the utility projects. However, it is the City's intent to discontinue the use of the Commercial Paper Program and issue utility revenue bonds at the beginning of the fiscal year instead to better manage the expenditures related to the CIP utility projects. OTHER CONSIDERATIONS: n/a FINANCIAL IMPACT: ❑ Not Applicable ❑ Operating Expense X Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budget - $75,000,000 - $ 75,000,000 Encumbered /Expended amount of (date) - - - This item - $75,000,000 - $ 75,000,000 BALANCE - - - - FUND(S): CIP Funds COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the motion and ordinance as presented. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON-EMERGENCY: Issuance of municipal obligations are exempted from the City's charter provision regarding dual reading and /or emergency adoption provisions pursuant to the provisions of Section 1201.028, as amended, Texas Government Code. DEPARTMENTAL CLEARANCES: • Bond Counsel • Legal Department LIST OF SUPPORTING DOCUMENTS: Exhibit A — Financial Advisor Fee Schedule Ordinance cc: Lisa Aguilar, Assistant City Attorney Eddie Houlihan, Assistant Director of Management and Budget Margie C. Rose, Assistant City Manager ORDINANCE NO. DRAFT 8/02/12 AUTHORIZING THE ISSUANCE OF ONE OR MORE SERIES OF CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE BONDS, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $75,000,000, PURSUANT TO THE DELEGATION PROVISIONS SET FORTH HEREIN; MAKING PROVISIONS FOR THE PAYMENT AND SECURITY THEREOF ON A PARITY WITH CERTAIN CURRENTLY OUTSTANDING UTILITY SYSTEM REVENUE OBLIGATIONS; STIPULATING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF ADDITIONAL REVENUE BONDS ON A PARITY THEREWITH; PRESCRIBING THE FORMS, TERMS, CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF EACH SERIES OF BONDS; INCLUDING THE APPROVAL AND DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS PERTAINING THERETO; AUTHORIZING THE EXECUTION OF ONE OR MORE PAYING AGENT/REGISTRAR AGREEMENTS, ONE OR MORE ESCROW AGREEMENTS, AND ONE OR MORE PURCHASE CONTRACTS; COMPLYING WITH THE REQUIREMENTS IMPOSED BY THE LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST COMPANY; ESTABLISHING THE CITY'S INTENTION TO REIMBURSE ITSELF FROM THE PROCEEDS OF ANY SUCH SERIES OF BONDS FOR THE PRIOR LAWFUL EXPENDITURE OF FUNDS TO CONSTRUCT VARIOUS CITY IMPROVEMENTS; DELEGATING THE AUTHORITY TO THE MAYOR AND CERTAIN MEMBERS OF THE CITY STAFF TO EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF EACH SERIES OF BONDS; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council (the City Council) of the City of Corpus Christi, Texas (the City) has heretofore issued, and there are currently Outstanding, revenue bonds (the Previously Issued Priority Bonds) secured by a first and prior lien on and pledge of the Net Revenues (as hereinafter defined) of the City's combined utility systems (as further described and defined herein, the System); and WHEREAS, in the City ordinances authorizing the issuance of the Previously Issued Priority Bonds, the City reserved the right to issue revenue bonds on a parity with the Previously Issued Priority Bonds; and WHEREAS, the City Council has heretofore authorized the issuance of revenue bonds (the Junior Lien Obligations) secured by a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds; and 81222633.2 WHEREAS, in the City ordinance authorizing the issuance of the Junior Lien Obligations, the City reserved the right to issue revenue bonds on a parity with the Junior Lien Obligations from time to time outstanding; and WHEREAS, the City Council has heretofore entered into a certain Federal Contract (as hereinafter defined) supported by a lien on and pledge of the Net Revenues of the System inferior to the lien thereon and pledge thereof securing the Previously Issued Priority Bonds and the Junior Lien Obligations (such Federal Contract, the Previously Issued Inferior Lien Obligations); and WHEREAS, the City deems it appropriate and in its best interest to issue the hereinafter authorized revenue bonds, in one or more series, for the primary purpose of acquiring, purchasing, constructing, improving, repairing, extending, equipping, and renovating the System; and WHEREAS, the City Council hereby finds and determines that, pursuant to the authority provided by Chapter 1371, as amended, Texas Government Code (Chapter 1371), the delegation to the Authorized Representatives (defined herein) of the authority to execute an Approval Certificate relating to each series of bonds issued hereunder (a form of which certificate is attached hereto as Schedule I) to establish and approve the final terms of sale of any such series of bonds (within the parameters specified herein) is in the best interest of the City; and WHEREAS, the City is empowered by the provisions of Chapters 1371 and 1502, as amended, Texas Government Code, and the City's Home Rule Charter to issue revenue bonds in the manner herein contemplated; and WHEREAS, prior to the issuance of a series of bonds hereunder, the City may elect to initially utilize other lawfully available funds to enter into various contracts to finance some or all of the capital costs associated with the System improvements for which bonds are to be issued hereunder; and WHEREAS, the provisions of Section 1201.042, as amended, Texas Government Code (Section 1201.042) 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 System improvements for which bonds are issued hereunder, may be used to reimburse the City for costs attributable to such project or facilities paid or incurred before the date of issuance of such bonds; and WHEREAS, the United States Department of Treasury (the Department) released Regulation Section 1.150 -2 (the 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 (the Code); and WHEREAS, the City 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 are paid), for the prior lawful capital expenditure of funds from the proceeds of a series of bonds issued hereunder; and 81222633.2 -2- WHEREAS, under the Regulations, to fund such reimbursement with proceeds of bonds issued hereunder, the City must declare its expectation ultimately to make such reimbursement before making the expenditures; and WHEREAS, the City Council hereby finds and determines that the reimbursement for the prior expenditure of funds of the City is not inconsistent with the City's budgetary and financial circumstances; and WHEREAS, the City Council hereby finds and determines that the actions authorized hereby and the adoption of this Ordinance are in the best interest of the citizens of the City, now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: Bonds Authorized. One or more series of revenue bonds of the City shall be and are hereby authorized to be issued, from time to time and in accordance with the limitations described in Section 2, to be designated CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE BONDS (as further designated by series and to reflect to the priority of the lien on revenue securing the repayment thereof, pursuant to Section 2) (each such series, the Bonds), under and in accordance with the terms of this ordinance (the Ordinance), for the purposes of (i) acquiring, purchasing, constructing, improving, repairing, extending, equipping, and renovating the System and (ii) paying the costs of issuance relating thereto. The Bonds shall be payable from and equally and ratably secured by a lien on and pledge of the all or a portion of the Net Revenues, at such level of priority as is determined by an Authorized Representative in accordance with Section 2), which pledge shall be on parity with the lien on and pledge of the City's utility system revenue bonds from time to time outstanding that are payable from a lien on and pledge of Net Revenues at such level of priority. The Bonds are authorized to be issued pursuant to the authority conferred by and in conformity with the laws of the State of Texas, including, particularly Chapters 1371 and 1502, as amended, Texas Government Code (together, the Act), the City's Home Rule Charter, and this Ordinance. SECTION 2: Delegation of Authority. As authorized by Chapter 1371, as amended, Texas Government Code (Chapter 1371), the Mayor of the City, the City Manager of the City, the Assistant City Manager for General Government and Operations Support, and the City's Director of Financial Services (each of the foregoing, individually, an Authorized Representative) are hereby authorized, appointed, and designated as the officers of the City authorized to individually act on behalf of the City in selling and delivering the Bonds authorized herein and carrying out the procedures specified in this Ordinance, including the: 81222633.2 (1) Aggregate principal amount of each maturity of the Bonds; and (2) Rate of interest to be borne on the principal amount of each maturity; and (3) Interest payment dates; and (4) Extraordinary, optional, and /or mandatory redemption provisions; and -3 - (5) Pricing of each series of Bonds, including use of premium, discount, underwriters' compensation, and costs of issuance; and (6) Underwriting syndicate for each series of Bonds, including the identification of the senior and book running manager and co- managers, respectively, for each such series; and (7) Bond date; and (8) Priority of the pledge of and lien on Net Revenues securing the repayment of the particular series of Bonds (being a pledge of and lien on Net Revenues that is on parity with the lien thereon and pledge thereof that secures the Previously Issued Priority Bonds or the Junior Lien Obligations, respectively); and (9) Further designation of each series of Bonds by year issued, number of similar series of bonds issued during the then - current calendar year, and the priority of lien on and pledge of Net Revenues securing such series of Bonds. Each series of Bonds issued under this Ordinance shall be issued within the following parameters: (1) The total principal amount of all series of Bonds issued hereunder shall not exceed $75,000,000. (2) The maximum maturity for any series of Bonds issued hereunder shall by July 15, 2043. (3) On a combined basis by series (and not on a per maturity basis within a series), he maximum net effective per annum interest rate applicable to any series of Bonds issued hereunder shall not exceed a rate greater 7% per annum, calculated in a manner consistent with the provisions of Chapter 1204, as amended, Texas Government Code (4) The final series of Bonds issued hereunder must be sold not later than August 14, 2013 (though the closing of a particular series of Bonds sold in accordance with this provision may occur after August 14, 2013, so long as such closing period is determined by an Authorized Representative to be of reasonable duration). (5) Each series of Bonds must be sold on a negotiated basis to an underwriting syndicate selected in accordance with this Section 2 (as provided above). In addition to the foregoing, each Authorized Representative is authorized to select the bond insurer and /or debt service reserve fund surety provider, if any, with respect to the Bonds. If the Authorized Representative chooses to purchase a debt service reserve surety policy or similar credit facility relating to the Bonds, then the Authorized Representative shall be permitted to execute an insurance or similar reimbursement agreement in substantially the form attached hereto as Exhibit F (which form is hereby approved) in connection with such purchase. The execution of the Approval Certificate shall evidence the sale date of the Bonds by the City to 81222633.2 -4- the Purchaser in accordance with the provisions of Chapter 1371. It is further provided, however, that notwithstanding the foregoing provisions, the Bonds shall not be delivered unless prior to their initial delivery, the Bonds have been rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long term obligations, as required by Chapter 1371. Upon execution of the Approval Certificate, Bond Counsel is authorized to complete a substantially similar version of this Ordinance, completed (as appropriate) with the information included in the applicable Approval Certificate and by incorporation of the terms of Exhibit A or Exhibit B hereto (as applicable), to reflect such final terms of the applicable series of Bonds issued hereunder. SECTION 3: Fully Registered Obligations - Authorized Denominations - Stated Maturities - Interest Rates - Dated Date. The Bonds are issuable in fully registered form only; shall be dated , 2012 (the Dated Date) shall be in denominations of $5,000 or any integral multiple thereof, shall be lettered "R -" and numbered consecutively from One (1) upward and principal shall become due and payable on July 15 in each of the years and in principal amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the Dated Date, or the most recent Interest Payment Date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the rates per annum in accordance with the following schedule: Years of Principal Interest Stated Maturity Amounts ($) Rates ( %) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 SECTION 4: Payment of Bonds - Interest Payments - Paying Agent/Registrar. The principal of, premium, if any, and interest on the Bonds, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private 81222633.2 -5 - debts, and such payment of principal of and interest on the Bonds shall be without exchange or collection charges to the Holder (as hereinafter defined) of the Bonds. 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 , 20 , while the Bonds are Outstanding. The selection and appointment of , Texas, to serve as the initial Paying Agent/Registrar (the Paying Agent /Registrar) for the Bonds is hereby approved and confirmed, and the City agrees and covenants to cause to be kept and maintained at the corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for the registration, payment, and transfer of the Bonds, all as provided herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially final form, as Exhibit D hereto, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds are Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking institution or (ii) an association or a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state authority and authorized by law to serve as a Paying Agent/Registrar. The City reserves the right to appoint a successor Paying Agent/Registrar upon providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance terminating such agency. Additionally, the City agrees to promptly cause a written notice of this substitution to be sent to each Holder of the Bonds by United States mail, first -class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Both principal of, premium, if any, and interest on the Bonds, due and payable by reason of Stated Maturity, redemption or otherwise, shall be payable only to the registered owner of the Bonds appearing on the Security Register (the Holder or Holders) maintained on behalf of the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (defined herein) for purposes of payment of interest thereon and (ii) on the date of surrender of the Bonds for purposes of receiving payment of principal thereof at the Bonds' Stated Maturity or upon prior redemption of the Bonds. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Bond for purposes of receiving payment and all other purposes whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of, and premium, if any, on the Bonds shall be payable only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its corporate trust office. Interest on the Bonds shall be paid to the Holder whose name appears in the Security Register at the close of business on the last business day of the month next preceding an Interest Payment Date for the Bonds (the Record Date) and shall be paid (i) by check sent by United States mail, first -class postage prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the 81222633.2 -6- Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the Holder at the Holder's risk and expense. If the date for the payment of the principal of, premium, if any, or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a day. The payment on such date shall have the same force and effect as if made on the original date any such payment on the Bonds was due. In the event of a non - payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first -class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 5: Redemption. A. Mandatory Redemption of Bonds. The Bonds stated to mature on July 15, 20 are referred to herein as the "Term Bonds ". The Term Bonds are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Bond Fund (but not the Reserve Fund) for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on July 15 in each of the years as set forth below: Term Bonds Stated to Mature on July 15, 20 Principal Year Amount ($) *Payable at stated maturity 81222633.2 -7- The principal amount of a Term Bond required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Bonds of such stated maturity which, at least 50 days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City with money in the Bond Fund (but not the Reserve Fund), or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. B. Optional Redemption. The Bonds having Stated Maturities on and after July 15, 20 shall be subject to redemption prior to Stated Maturity, at the option of the City, on July 15, 20 , or any date thereafter, as a whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption. C. Exercise of Redemption Option. At least forty -five (45) days prior to a date set for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the City Council. D. Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall select at random and by lot the Bonds to be redeemed, provided that if less than the entire principal amount of a Bond is to be redeemed, the Paying Agent/Registrar shall treat such Bond then subject to redemption as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bond by $5,000. E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first -class postage prepaid, in the name of the City and at the City's expense, by the Paying Agent/Registrar to each Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to 81222633.2 -8- redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Bond (or the principal amount thereof to be redeemed) so called for redemption shall become due and payable, and if money sufficient for the payment of such Bonds (or of the principal amount thereof to be redeemed) at the then applicable redemption price is held for the purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated in such notice, interest on said Bonds (or the principal amount thereof to be redeemed) called for redemption shall cease to accrue, and such Bonds shall not be deemed to be Outstanding in accordance with the provisions of this Ordinance. This notice may also be published once in a financial publication, journal, or reporter of general circulation among securities dealers in the City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter). Additionally, this notice may also be sent by the City to any registered securities depository and to any national information service that disseminates redemption notices. F. Transfer/Exchange. Neither the City nor the Paying Agent/Registrar shall be required (i) to transfer or exchange any Bond during a period beginning forty -five (45) days prior to the date fixed for redemption of the Bonds or (ii) to transfer or exchange any Bond selected for redemption, provided; however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond which is subject to redemption in part. SECTION 6: Execution - Registration. The Bonds shall be executed on behalf of the City by its Mayor, its seal reproduced or impressed thereon, and attested by the City Secretary. The signature of either officer on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who were, at the time of the Dated Date, the proper officers of the City shall bind the City, notwithstanding that such individuals or either of them shall cease to hold such offices prior to the delivery of the Bonds to the Purchasers (defined herein), all as authorized and provided in Chapter 1201, as amended, Texas Government Code. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 8C, executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate of registration substantially in the form provided in Section 8D, executed by the Paying Agent/Registrar by manual signature, and either such certificate upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified or registered and delivered. SECTION 7: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of every owner of the Bonds, or, if appropriate, the nominee thereof. Any Bond may, in accordance with its terms and the terms hereof, be transferred or exchanged for Bonds of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. 81222633.2 -9- Upon surrender for transfer of any Bond at the corporate trust office of the Paying Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of authorized denomination and having the same Stated Maturity and of a like interest rate and aggregate principal amount as the Bond or Bonds surrendered for transfer. At the option of the Holder, Bonds may be exchanged for other Bonds of the same series and of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange upon surrender of the Bonds to be exchanged at the corporate trust office of the Paying Agent/Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute, and the Paying Agent/Registrar shall register and deliver, the Bonds, to the Holder requesting the exchange. All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered upon such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any fee, tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be Predecessor Bonds, evidencing all or a portion, as the case may be, of the same debt evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term Predecessor Bonds shall include any Bond registered and delivered pursuant to Section 30 in lieu of a mutilated, lost, destroyed, or stolen Bond which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. SECTION 8: Initial Bond(s). The Bonds herein authorized shall be issued initially either (i) as a single fully- registered Bond in the total principal amount of $ with principal installments to become due and payable as provided in Section 2 and numbered T -1, or (ii) as one (1) fully- registered Bond for each year of Stated Maturity in the applicable principal amount and denomination and to be numbered consecutively from T -1 and upward (the Initial Bond(s)) and, in either case, the Initial Bond(s) shall be registered in the name of the initial purchasers or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchasers. Any time after the delivery of the Initial Bond(s), the Paying Agent/Registrar shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchasers, or the 81222633.2 -10- designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 9: Provisions Applicable to the Bonds Based on Priority of Lien on and Pledge of Net Revenues. [Insert terms indicated in Exhibit A hereto if the particular series of Bonds are issued as Additional Priority Lien Bonds or the terms indicated in Exhibit B if the particular series of Bonds are issued as Additional Junior Lien Obligations.] SECTION 10: Security of Funds. All money on deposit in the funds or accounts for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested as provided herein) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and money on deposit in such Funds or accounts shall be used only for the purposes permitted by this Ordinance. SECTION 11: Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Bond Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of the Bonds shall be entitled to seek a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedy herein provided shall be cumulative of all other existing remedies and the specification of such remedy shall not be deemed to be exclusive. SECTION 12: Notices to Holders Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first -class postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 13: Bonds Are Negotiable Instruments. Each of the Bonds authorized herein shall be deemed and construed to be a "security" and as such a negotiable instrument with the meaning of the Chapter 8 of the Texas Uniform Commercial Code. 81222633.2 SECTION 14: Cancellation. All Bonds surrendered for payment, transfer, redemption, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as directed by the City. SECTION 15: Mutilated, Destroyed, Lost, and Stolen Bonds. If (1) any mutilated Bond is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Bond, and (2) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Bond has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of the same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number not contemporaneously Outstanding. In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a new Bond, pay such Bond. Upon the issuance of any new Bond or payment in lieu thereof, under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation thereto and any other expenses (including attorney's fees and the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Bonds. SECTION 16: Sale of Bonds- Official Statement Approval — Approval of Purchase Contract — Use of proceeds. The Bonds authorized by this Ordinance are hereby sold by the City to , , Texas, as the authorized representative of a group of underwriters (the Purchasers, and having all the rights, benefits, and obligations of a Holder) in accordance with the provisions of a Purchase Contract dated , 2012 (the Purchase Contract) attached hereto as Exhibit C and incorporated herein by reference as a part of this Ordinance for all purposes. The pricing terms of the sale of the Bonds are hereby found and determined to be 81222633.2 -12- the most advantageous reasonably obtainable by the City. The Initial Bonds shall be registered in the name of , , Texas. Any Authorized Representative is hereby authorized and directed to execute the Purchase Contract for and on behalf of the City and as the act and deed of the City Council, and in regard to the approval and execution of the Purchase Contract, the City Council hereby finds, determines and declares that the representations, warranties, and agreements of the City contained in the Purchase Contract are true and correct in all material respects and shall be honored by the City. Delivery of the Bonds to the Purchaser shall occur as soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance with the terms of the Purchase Contract. Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City's prior determination that the Preliminary Official Statement was, as of its date, "deemed final" in accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the Preliminary Official Statement by the Purchaser in connection with the public offering and sale of the Bonds. The final Official Statement, being a modification and amendment of the Preliminary Official Statement to reflect the terms of sale (together with such changes approved by an Authorized Representative), shall be and is hereby in all respects approved and the Purchaser is hereby authorized to use and distribute the final Official Statement, dated , 2012, in the reoffering, sale and delivery of the Bonds to the public. The Mayor and /or City Secretary are further authorized and directed to manually execute and deliver for and on behalf of the City copies of the Official Statement in final form as may be required by the Purchaser, and such final Official Statement in the form and content manually executed by said officials shall be deemed to be approved by the City Council and constitute the Official Statement authorized for distribution and use by the Purchaser. Proceeds from the sale of the Bonds shall be applied as follows: A. The City received a net original reoffering premium from the sale of the Bonds of $ which is hereby allocated by the City to pay certain costs of issuance. B. The balance of the proceeds (after paying other costs of issuance and the other deposits referred to in paragraph A above) shall be deposited into the special construction account or accounts created for the projects to be constructed with the Bond proceeds. This special construction account shall be established and maintained at the City's depository bank and shall be invested in accordance with the provisions of Section [10] of this Ordinance. Interest earned on the proceeds of the Bonds pending completion of the projects financed with such proceeds shall be accounted for, maintained, deposited, and expended as permitted by the provisions of Chapter 1201, as amended, Texas Government Code, or as required by any other applicable law. Thereafter, such amounts shall be expended in accordance with Section [11]. SECTION 17: Covenants to Maintain Tax - Exempt Status. A. Definitions. When used in this Section, the following terms have the following meanings: Code means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. 81222633.2 -13- Computation Date has the meaning set forth in Section 1.148 -1(b) of the Regulations. Gross Proceeds means any proceeds as defined in Section 1.148 -1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148 -1(c) of the Regulations, of the 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 (a) any Investment has the meaning set forth in Section 1.148 -5 of the Regulations; and (b) 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 or refinanced 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 as would 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 with terms different than those applicable to the general public) or any property acquired, constructed or improved with 81222633.2 -14- such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the 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. D. No Private Loan. Except as would 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 as would 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. 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(f) 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 81222633.2 -15- Gross Proceeds of the Bonds 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(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Bond Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148 - 3(e)(2) of the Regulations, one hundred percent (100 %) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90 %) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) 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(f) 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 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 such Bonds are issued. 81222633.2 -16- (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. Elections. The City hereby directs and authorizes each Authorized Official, or any combination of them, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Such elections shall be deemed to be made on the Closing Date. SECTION 18: Control and Custody of Bonds. The Mayor shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas and shall take and have charge and control of the Bonds pending their approval by the Attorney General of the State of Texas, the registration thereof by the Comptroller of Public Accounts of the State of Texas and the delivery of the Bonds to the Purchasers. Furthermore, any Authorized Official or any combination of them are hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the issuance of the Bonds, the approval of the Attorney General and their registration by the Comptroller of Public Accounts and, together with the City's Bond Counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the Purchasers. SECTION 19: Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the lien on and pledge of Junior Lien Pledged Revenues under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. The Bonds, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at Stated Maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have, in the case of a net defeasance, been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof for the Bonds. In the event of a gross defeasance of the Bonds, the City shall deliver a certificate from its financial advisor, the Paying Agent/Registrar, or another qualified third party concerning the deposit of cash and /or Government Securities to pay, when due, the 81222633.2 -17- principal of, redemption premium (if any), and interest due on any defeased Bonds. The City covenants that no deposit of money or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 35 hereof). Any money so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such money has been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such money was deposited and is held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor, subject to the unclaimed property laws of the State of Texas. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby provided that any determination not to redeem defeased 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. SECTION 20: Ordinance a Contract; Amendments - Outstanding Bonds. The City acknowledges that the covenants and obligations of the City herein contained are a material inducement to the purchase of the Bonds. This Ordinance shall constitute a contract with the Holders from time to time, binding on the City and its successors and assigns, and it shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required for consent to any such amendment, addition, or rescission. 81222633.2 -18- SECTION 21: Printed Opinion. The Purchasers' obligation to accept delivery of the Bonds is subject to its being furnished a final opinion of Fulbright & Jaworski L.L.P., as Bond Counsel, approving certain legal matters as to the Bonds, said opinion to be dated and delivered as of the date of initial delivery and payment for such Bonds. Printing of a true and correct copy of said opinion on the reverse side of each of said Bonds, with appropriate certificate pertaining thereto executed by facsimile signature of the City's Secretary is hereby approved and authorized. SECTION 22: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof, and neither the City nor attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 23: Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 24: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, Bond Counsel, Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Financial Advisors, the Paying Agent/Registrar, and the Holders. SECTION 25: Inconsistent Provisions. All resolutions and ordinances, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. SECTION 26: Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 27: Severability. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 28: Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council. SECTION 29: Authorization of Paying Agent/Registrar Agreement. The City Council hereby finds and determines that it is in the best interest of the City to authorize the execution of a Paying Agent/Registrar Agreement concerning the payment, exchange, and transferability of the Bonds. A copy of the Paying Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit D and is incorporated by reference to the provisions of this Ordinance. 81222633.2 -19- SECTION 30: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 31: Continuing Disclosure of Information. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: EMMA means the MSRB's Electronic Municipal Market Access system, accessible by the general public, without charge, on the internet through the uniform resource locator (URL) http: / /www.emma.msrb.org. MSRB means the Municipal Securities Rulemaking Board. Rule means SEC Rule 15c2 -12, as amended from time to time. SEC means the United States Securities and Exchange Commission. B. Annual Reports. The City shall file annually with the MSRB, (1) within six months after the end of each fiscal year of the City ending in or after 2012, financial information and operating data with respect to the System of the general type included in the final Official Statement authorized by Section 31 of this Ordinance, being the information described in Exhibit E hereto, and (2) if not provided as part such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be 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 file unaudited financial statements within such period and audited for the applicable fiscal year to the MSRB, when and if the audit report on such statements becomes available. If the City changes its fiscal year, it will file notice thereof with the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. C. Notice of Certain Events. The City shall file notice of any of the following events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: (1) Principal and interest payment delinquencies; (2) Non - payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; 81222633.2 -20- (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) Modifications to rights of Holders of the Bonds, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) Appointment of a successor or additional Paying Agent/Registrar or the change of name of a Paying Agent/Registrar, if material. For these purposes, any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall file notice with 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. 81222633.2 -21- 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 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 this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell 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 81222633.2 -22- 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. E. Information Format — Incorporation by Reference. The City information required under this Section shall be filed with the MSRB through EMMA in such format and accompanied by such identifying information as may be specified from time to time thereby. Under the current rules of the MSRB, continuing disclosure documents submitted to EMMA must be in word - searchable portable document format (PDF) files that permit the document to be saved, viewed, printed, and retransmitted by electronic means and the series of obligations to which such continuing disclosure documents relate must be identified by CUSIP number or numbers. 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 (including an official statement or other offering document) available to the public through EMMA or filed with the United States Securities and Exchange Commission. SECTION 32: Book -Entry Only System. The Bonds are initially registered so as to participate in a securities depository system (the DTC System) with the Depository Trust Company, New York, New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the Bonds shall be issued (following cancellation of the Initial Bond(s) described in Section [7]) in the form of a separate single definitive Bond. Upon issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the Outstanding Bonds shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit G (the Representation Letter). With respect to the Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any broker - dealer, bank, or other financial institution for which DTC holds the Bonds from time to time as securities depository (a Depository Participant) or to any person on behalf of whom such a Depository Participant holds an interest in the Bonds (an Indirect Participant). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Depository Participant or any other person, other than a registered owner of the Bonds, as shown on the Security Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a Holder of a Bond, of any amount with respect to 81222633.2 -23- principal of, premium, if any, or interest on the Bonds. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a Bond evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the availability within a reasonable period of time through DTC of bond certificates, and the Bonds shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Bonds may be registered in whatever name or names the Holders of Bonds transferring or exchanging the Bonds shall designate, in accordance with the provisions hereof. 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 33: Declaration of Intent to Reimburse for the Prior Expenditure of Certain Expenses. This Ordinance shall serve as a declaration of intent to establish the City's reasonable, official intent under Section 1.150 -2 of the Regulations and Section 1201.042 to reimburse itself from certain of the proceeds of the Bonds for any capital expenditures previously incurred (not more than 60 days prior to the date hereof) or to be incurred with respect to the Project from the City's General Fund or other lawfully available funds of the City. The City intends to issue one or more series of Bonds hereunder and, within 30 days after the date of issuance of a series Bonds, allocated the proceeds therefrom to reimburse the City for prior lawful expenditures with respect to the System improvements for which the Bonds are issued in a manner to comply with the Regulations. Any such reimbursed expenditures will be a type properly chargeable to a capital account (or would be so chargeable with a proper election) under general federal income tax principals. The City intends to otherwise comply, in addition to those matters addressed within this Ordinance, with all the requirements contained in the Regulations. With respect to the proceeds of a series of Bonds allocated to reimburse the City for prior expenditures, the City shall not employ an abusive device under Section 1.148 -10 of the Regulations, including using within one year of the reimbursement allocation, the funds 81222633.2 -24- corresponding to the proceeds of such series of Bonds in a manner that results in the creation of "replacement proceeds ", as defined in Section 1.148 -1 of the Regulations, of the particular series of Bonds or another issue of tax - exempt obligations. SECTION 34: Further Procedures. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial sale and delivery of the Bonds, the Agreement, the Paying Agent/Registrar Agreement, and the Purchase Contract. In addition, prior to the initial delivery of the Bonds, each Authorized Official and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance and as described in the Official Statement, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Bonds by the Texas Attorney General's office. In case any officer of the City whose signature shall appear on any certificate shall cease to be such officer before the delivery of such certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 35: Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal, or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. SECTION 36: No Recourse Against City Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Bond or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Bond. SECTION 37: Covenants of Compliance. The City shall faithfully and punctually perform all duties with reference to the System required by the Act, all other applicable laws of the State of Texas, and the provisions of this Ordinance and that the City shall render no free service to any customers or other persons. SECTION 38: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine, or neuter gender shall be considered to include the other genders. SECTION 39: Effective Date. This Ordinance shall be in force and effect from and after its final passage, and it is so resolved. 81222633.2 -25- 81222633.2 [The remainder of this page intentionally left blank.] -26- SIGNED AND SEALED THIS 14th DAY OF AUGUST, 2012. CITY OF CORPUS CHRISTI, TEXAS Mayor ATTEST: City Secretary (SEAL) APPROVED THIS DAY OF , 2012: Carlos Valdez, City Attorney SCHEDULE EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E — EXHIBIT F — EXHIBIT G I — Form of Approval Certificate — Ordinance Provisions Relating to Priority Bonds — Ordinance Provisions Relating to Junior Lien Obligations — Purchase Contract — Paying Agent/Registrar Agreement Description of Annual Financial Information Form of Credit Agreement — DTC Letter of Representations 81222633.2 S -1 THE STATE OF TEXAS COUNTY OF N UECES CITY OF CORPUS CHRISTI I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 14th day of August, 2012, authorizing the issuance of one or more series of the City's Utility System Revenue Bonds, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Texas Government Code, Chapter 551. EXECUTED UNDER MY HAND AND SEAL of said City, this the 14th day of August, 2012. 81222633.2 City Secretary (CITY SEAL) S -2 81222633.2 SCHEDULE I Form of Approval Certificate Schedule I -1 EXHIBIT A Ordinance Provisions Relating to Priority Bonds 81222633.2 SECTION 1: FORMS. A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including insurance legends in the event the Bonds, or any Stated Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an opinion of counsel) thereon as may, consistent herewith, be established by the City or determined by the officers executing the Bonds as evidenced by their execution thereof. Any portion of the text of any Bond may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Bonds as evidenced by their execution thereof, but the Initial Bond(s) submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. B. Form of Definitive Bond. REGISTERED REGISTERED PRINCIPAL AMOUNT NO. $ United States of America State of Texas Counties of Nueces, Aransas, Kleberg, and San Patricio CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE BONDS, SERIES 2012 Dated Date: , 2012 REGISTERED OWNER: Interest Rate: Stated Maturity: CUSIP NO: PRINCIPAL AMOUNT: DOLLARS The City of Corpus Christi, Texas (the City), a body corporate and a municipal corporation located in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above (or so much thereof as shall not have been paid upon prior A -1 redemption), and to pay interest on the unpaid Principal Amount hereof from the Dated Date (anticipated to occur on or about , 2012) or from the most recent interest payment date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day of 30 -day months; such interest being payable on January 15 and July 15 of each year commencing 15, 2013. Principal and premium, if any, of the Bond shall be payable to the Registered Owner hereof (the Holder) upon presentation and surrender, at the corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon or a successor thereof. Interest shall be payable to the Holder of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the last business day of the month next preceding each interest payment date. All payments of principal of and interest on this Bond shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on the appropriate date of payment by United States Mail, first -class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder's risk and expense. This Bond is one of the series specified in its title issued in the aggregate principal amount of $ (the Bonds) pursuant to an ordinance adopted by the governing body of the City (the Ordinance), for the purpose of (i) building, improving, extending, renovating, enlarging, and repairing the System and (ii) the payment of their costs of issuance. The Bonds are authorized to be issued pursuant to the authority conferred by and in conformity with the Constitution and laws of the State of Texas, particularly Chapters 1371 and 1502, as amended, Texas Government Code, the City's Home Rule Charter, and the Ordinance. [The remainder of this page intentionally left blank] The Bonds stated to mature on July 15, 20 are referred to herein as the "Term Bonds ". The Term Bonds are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Bond Fund (but not the Reserve Fund) for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on July 15 in each of the years as set forth below: Term Bonds Stated to Mature on July 15, 20 Principal Year Amount ($) *Payable at stated maturity The principal amount of a Term Bond required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Bonds of such stated maturity which, at least 50 days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City with money in the Bond Fund (but not the Reserve Fund), or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. The Bonds stated to mature on and after July 15, 20 may be redeemed prior to their Stated Maturities, at the option of the City, on July 15, 20 or on any date, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar) at the redemption price of par, together with accrued interest to the date of redemption, and upon thirty (30) days prior written notice being given by United States mail, first -class postage prepaid, to Holders of the Bonds to be redeemed, and subject to the terms and provisions relating thereto contained in the Ordinance. If this Bond is subject to redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender of this Bond to the Paying Agent/Registrar at its corporate trust office, a new Bond or Bonds of like Stated Maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. A -3 If this Bond (or any portion of the principal sum hereof) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date this Bond (or the portion of the principal sum hereof to be redeemed) shall become due and payable, and, if money for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption is held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon from and after the redemption date on the principal amount hereof to be redeemed. In the event of a partial redemption of the principal amount of this Bond, payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of this Bond to the corporate trust office of the Paying Agent/Registrar and, there shall be issued to the registered owner hereof, without charge, a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof If this Bond is called for redemption, in whole or in part, the City or the Paying Agent/Registrar shall not be required to issue, transfer, or exchange this Bond within forty -five (45) days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its redemption in part. The Bonds of this series are special obligations of the City, issued as the initial series of Junior Lien Obligations, payable from and equally and ratably secured by a lien on and pledge of the Junior Lien Pledged Revenues, being (primarily) lien on and pledge of the Net Revenues derived from the operation of the City's utility system (as further described in the Ordinance, the System), that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of the Inferior Lien Obligations. In the Ordinance, the City reserves and retains the right to issue Additional Priority Bonds, Additional Junior Lien Obligations, Additional Subordinate Lien Obligations, and Additional Inferior Lien Obligations without limitation as to principal amount but subject to any terms, conditions, or restrictions set forth in the Ordinance or as may be applicable thereto under law or otherwise. The Bonds do not constitute a legal or equitable pledge, charge, lien, or encumbrance upon any property of the City or System, except with respect to the Junior Lien Pledged Revenues. The Holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Reference is hereby made to the Ordinance, a copy of which is on file in the corporate trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his acceptance hereof hereby assents, for definitions of terms; the description and nature of the Junior Lien Pledged Revenues pledged for the payment of the Bonds; the terms and conditions under which the City may issue Additional Priority Bonds, Additional Junior Lien Obligations, Additional Subordinate Lien Obligations, and Additional Inferior Lien Obligations; the terms and conditions relating to the transfer or exchange of the Bonds; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be redeemed or discharged at or prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms A -4 and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Bond as the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity, or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of either, shall be affected by notice to the contrary. In the event of a non - payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, covenanted, and represented that all acts, conditions, and things required to be performed, exist, and be done precedent to the issuance of this Bond in order to render the same a legal, valid, and binding special obligation of the City have been performed, exist, and have been done, in regular and due time, form, and manner, as required by law, and that issuance of the Bonds does not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by a pledge of and lien on the Junior Lien Pledged Revenues. In case any provision in this Bond or any application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. [The remainder of this page intentionally left blank] IN WITNESS WHEREOF, this Bond has been signed with the imprinted or lithographed facsimile signature of the Mayor of the City, attested by the imprinted or lithographed facsimile signature of the City Secretary, and the official seal of the City has been duly affixed to, printed, lithographed or impressed on this Bond. CITY OF CORPUS CHRISTI, TEXAS Mayor ATTEST: City Secretary (SEAL) C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Bond(s) Only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that this 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) * Bond to Printer: Not to appear on printed Bonds Only. D. *Form of Certificate of Paying Agent/Registrar to Appear on Definitive Bonds CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued under the provisions of the within- mentioned 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: * Bond to Printer: to appear on printed Bonds E. Form of Assignment. Texas, as Paying Agent/Registrar By: Authorized Signature AS SIGNMENT 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: F. The Initial Bond(s) shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Bond shall be modified as follows: (1) immediately under the name of the Bond(s) the headings "Interest Rate" and "Stated Maturity" shall both be completed "as shown below "; (2) the first two paragraphs shall read as follows: REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Corpus Christi, Texas (the City), a body corporate and a municipal corporation located in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above on the fifteenth day of July in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Years of Principal Interest Stated Maturity Amounts ($) Rates ( %) (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amount hereof from the Dated Date, or from the most recent interest payment date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day of 30 -day months; such interest being payable on January 15 and July 15 of each year, commencing 15, 2013. Principal of this Bond shall be payable to the Registered Owner hereof (the Holder), upon its presentation and surrender, at the corporate trust office of , Texas (the Paying Agent /Registrar). Interest shall be payable to the Holder of this Bond whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the last business day of the month next preceding each interest payment date. All payments of principal of and interest on this Bond shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first -class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof. G. Insurance Legend. If bond insurance is obtained by the Purchasers or the City for the Bonds, the definitive Bonds and the Initial Bond(s) shall bear an appropriate legend as provided by the insurer. A -9 SECTION 2: Definitions. For all purposes of this Ordinance (as defined below), except as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Sections [35] and [49] of this Ordinance have the meanings assigned to them in such Sections, and all such terms include the plural as well as the singular; (ii) all references in this Ordinance to designated "Sections" and other subdivisions are to the designated Sections and other subdivisions of this Ordinance as originally adopted; and (iii) the words "herein ", "hereof', and "hereunder" and other words of similar import refer to this Ordinance as a whole and not to any particular Section or other subdivision. A. The term Additional Priority Bonds shall mean (i) any bonds, notes, warrants, or other evidences of indebtedness which the City reserves the right to issue or enter into, as the case may be, in the future under the terms and conditions provided in Section [19] of this Ordinance and which are equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System that is senior and superior to the lien thereon and pledge thereof that is made a part of Junior Lien Pledged Revenues or that may secure the repayment of any Inferior Lien Obligations and (ii) obligations hereafter issued to refund any of the foregoing if issued in a manner so as to be payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law. B. The term Additional Inferior Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Net Revenues, such pledge is subordinate and inferior to the lien on and pledge of the Net Revenues that are or will be pledged to the payment of the Priority Bonds or that is included in Junior Lien Pledged Revenues, and on parity with the lien on and pledge of the Net Revenues securing the payment of the then - Outstanding Inferior Lien Obligations and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law. C. The term Additional Junior Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Junior Lien Pledged Revenues, such pledge to include a pledge of Net Revenues that is junior and inferior to the lien on and pledge of the Net Revenues that are or will be pledged to the payment of the Priority Bonds now Outstanding or hereafter issued by the City but senior and superior to the lien thereon and pledge thereof that are or will be pledged to the payment of the Inferior Lien Obligations now Outstanding or hereafter issued by the City, and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, as determined by the City Council in accordance with applicable law. D. The term Additional Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Net Revenues, such A -10 pledge is subordinate and inferior to the lien on and pledge of the Net Revenues that are or will be pledged to the payment of the Priority Bonds or that is included in Junior Lien Pledged Revenues, but senior and superior to the lien thereon and pledge thereof that are or will be pledged to the payment of the Inferior Lien Obligations now Outstanding or hereafter issued by the City, and on parity with the lien on and pledge of the Net Revenues securing the payment of the then - Outstanding Subordinate Lien Obligations and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law. E. The term Authorized Official shall mean the Mayor of the City, the City Manager of the City, the Assistant City Manager for General Government and Operations Support, the Director of Financial Services, and , the City Auditor. F. The term Average Annual Debt Service Requirements shall mean that average amount which, at the time of computation, will be required to pay the Debt Service Requirements of obligations when due and derived by dividing the total of such Debt Service Requirements by the number of years then remaining before final Stated Maturity. The calculation of Average Annual Debt Service Requirements shall be net of (1) capitalized interest from bond proceeds and (2) the receipt or anticipated receipt of a refundable tax credit or similar payment relating to a series of Junior Lien Obligations irrevocably designated as refundable tax credit bonds, which payment shall be treated as one offset to regularly scheduled debt service of the series of Junior Lien Obligations to which it relates. G. The term Bonds shall mean the $ "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE BONDS, SERIES 2012 ", dated , 2012, authorized by this Ordinance. H. The term Bond Fund shall mean the special Fund or account created and established by the provisions of Section 13 of this Ordinance. I. The term Capital Additions shall mean a reservoir or other water storage facilities, a water or wastewater treatment plant or an interest therein, an electric generation facility and /or distribution system 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. J. The term Capital Improvements shall mean any capital extensions, improvements and betterments to the System other than Capital Additions. K. The term City shall mean the City of Corpus Christi, Texas and, where appropriate, the City Council of the City. L. The term Closing Date shall mean the date of physical delivery of the Initial Bonds in exchange for the payment in full by the Purchasers. M. The term Credit Agreement shall mean a loan agreement, revolving credit agreement, agreement establishing a line of credit, letter of credit, reimbursement agreement, A -11 insurance contract, commitments to purchase Debt, purchase or sale agreements, interest rate swap agreements, or commitments or other contracts or agreements authorized, recognized, and approved by the City as a Credit Agreement in connection with the authorization, issuance, security, or payment of any Bond or the payment of any Credit Facility. N. The term Credit Facility shall mean (i) a policy of insurance or a surety bond, issued by an issuer of policies of insurance insuring the timely payment of debt service on governmental obligations, or (ii) a letter or line of credit issued by any financial institution. O. The term Credit Provider shall mean any bank, financial institution, insurance company, surety bond provider, or other institution which provides, executes, issues, or otherwise is a party to or provider of a Credit Agreement or Credit Facility. P. The term Debt shall mean (1) all indebtedness payable from Junior Lien Pledged Revenues and /or Net Revenues incurred or assumed by the City for borrowed money (including indebtedness payable from Junior Lien Pledged Revenues and /or Net Revenues arising under Credit Agreements) and all other financing obligations of the System payable from Junior Lien Pledged Revenues and /or Net Revenues that, in accordance with generally accepted accounting principles, are shown on the liability side of a balance sheet; and (2) all other indebtedness payable from Junior Lien Pledged Revenues and /or Net Revenues (other than indebtedness otherwise treated as Debt hereunder) for borrowed money or for the acquisition, construction, or improvement of property or capitalized lease obligations pertaining to the System that is guaranteed, directly or indirectly, in any manner by the City, or that is in effect guaranteed, directly or indirectly, by the City through an agreement, contingent or otherwise, to purchase any such indebtedness or to advance or supply funds for the payment or purchase of any such indebtedness or to purchase property or services primarily for the purpose of enabling the debtor or seller to make payment of such indebtedness, or to assure the owner of the indebtedness against loss, or to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether or not such property is delivered or such services are rendered), or otherwise. For the purpose of determining Debt, there shall be excluded any particular Debt if, upon or prior to the maturity thereof, there shall have been deposited with the proper depository (a) in trust the necessary funds (or investments that will provide sufficient funds, if permitted by the instrument creating such Debt) for the payment, redemption, or satisfaction of such Debt or (b) evidence of such Debt deposited for cancellation; and thereafter it shall not be considered Debt. No item shall be considered Debt unless such item constitutes indebtedness under generally accepted accounting principles applied on a basis consistent with the financial statements of the System in prior Fiscal Years. Q. The term Debt Service Requirements shall mean, as of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the City as of such date or in such period for the payment of A -12 the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear interest calculated by assuming (i) that the interest rate for every 12 -month period on such bonds is equal to the rate of interest reported in the most recently published edition of The Bond Buyer (or its successor) at the time of calculation as the "Revenue Bond Index" or, if such Revenue Bond Index is no longer being maintained by The Bond Buyer (or its successor) at the time of calculation, such interest rate shall be assumed to be 80% of the rate of interest then being paid on United States Treasury obligations of like maturity and (ii) that, in the case of bonds not subject to fixed scheduled mandatory sinking fund redemptions, that the principal of such bonds is amortized such that annual debt service is substantially level over the remaining stated life of such bonds or in the manner permitted under Section 1371.057(c), as amended, Texas Government Code as the same relates to interim or non — permanent indebtedness, and in the case of obligations required to be redeemed or prepaid as to principal prior to Stated Maturity according to a fixed schedule, the principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the mandatory redemption provisions applicable thereto (in each case notwithstanding any contingent obligation to redeem bonds more rapidly). For the term of any Credit Agreement in the form of an interest rate hedge agreement entered into in connection with any such obligations, Debt Service Requirements shall be computed by netting the amounts payable to the City under such hedge agreement from the amounts payable by the City under such hedge agreement and such obligations. R. The term Depository shall mean an official depository bank of the City. S. The term Engineer shall mean an individual, firm, or corporation engaged in the engineering profession, being a registered professional engineer under the laws of the State of Texas, having specific experience with respect to a combined municipal utility system similar to the System and such individual, firm, or corporation may be employed by, or may be an employee of, the City. T. The term Federal Contract shall mean Contract No. 6 -07 -01 -X0675 entered into by an among the United States of America, the City and the Nueces River Authority, dated June 30, 1976, and amended on June 16, 1980, with respect to the Nueces River Reclamation Project, pursuant to which the City has pledged the revenues of its waterworks system in support of the payment obligations of the City under the Federal Contract, subordinate and inferior to the pledge of and lien on the Net Revenues securing the payment of the Priority Bonds, the lien thereon and pledge thereof securing the payment of the Junior Lien Obligations, as a result of such Net Revenues being included as Junior Lien Pledged Revenues, and the lien thereon and pledge thereof securing the payment of the Subordinate Lien Obligations. U. The term Fiscal Year shall mean the twelve month accounting period used by the City in connection with the operation of the System which may be any twelve consecutive month period established by the City, which period presently commences on August 1 of each year and ends on the following July 31. V. The term Government Securities as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America; (ii) noncallable obligations of an agency or instrumentality of the A -13 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; (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; and (iv) any additional securities and obligations hereafter authorized by the laws of the State of Texas as eligible for use to accomplish the discharge of obligations such as the Bonds. W. 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 System, other than those amounts subject to payment to the United States of America as rebate pursuant to section 148 of the Code. X. The term Holder or Holders shall mean the registered owner, whose name appears in the Security Register, for any Bond. Y. The term Inferior Lien Obligations shall mean (i) the Previously Issued Inferior Lien Obligations, (ii) any Additional Inferior Lien Obligations, and (iii) any obligations issued to refund the foregoing payable and equally and ratably secured from a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. Z. The term Interest Payment Date shall mean the date semiannual interest is payable on the Bonds, being January 15 and July 15 of each year, commencing 15, 2013, while any of the Bonds remain Outstanding. AA. The term Junior Lien Obligations shall mean (i) the Bonds, (ii) any Additional Junior Lien Obligations, and (iii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of the Inferior Lien Obligations, as determined by the City Council in accordance with applicable law. BB. The term Junior Lien Pledged Revenues means (1) the Net Revenues that remain after payment of all amounts, and funding of all funds, relating to any Priority Bonds, plus (2) 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 by the City to the payment of the Bonds, and at the City's discretion, any Additional Junior Lien Obligations, and excluding those revenues excluded from Gross Revenues. A -14 CC. The term Net Revenues shall mean all Gross Revenues less Operating Expenses. DD. 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, Junior Lien Obligations, Inferior Lien Obligations, or other Debt of the System. 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. Operating Expenses shall never include any allowance for depreciation, property retirement, depletion, obsolescence, and other items not requiring an outlay of cash and any interest on the Bonds or any Debt. EE. The term Ordinance shall mean this Ordinance adopted by the City Council on July 10, 2012. FF. The term Outstanding shall mean when used in this Ordinance with respect to all Debt means, as of the date of determination, all Debt except: (1) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations canceled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations for which payment has been duly provided by the City in accordance with the provisions of Section 37 of this Ordinance; and (3) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations that has been mutilated, destroyed, lost, or stolen and replacement Bonds have been registered and delivered in lieu thereof as provided in Section 30 of this Ordinance. GG. The term Previously Issued Inferior Lien Obligations shall mean the Federal Contract. HH. The term Previously Issued Priority Bonds shall mean, as of the Closing Date (i) the Outstanding and unpaid obligations of the City that are payable solely from and equally and ratably secured by a prior and first lien on and pledge of the Net Revenues of the System, identified as follows: (1) "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2003 ", dated May 15, 2003, in the original principal amount of $28,870,000; (2) "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005 ", dated January 1, 2005, in the original principal amount of $70,390,000; A -15 (3) [ "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005A ", dated October 1, 2005, in the original principal amount of $68,325,000;] (4) "City of Corpus Christi, Texas Utility System Revenue Refunding and Improvement Bonds, Series 2006 ", dated October 1, 2006, in the original principal amount of $84,415,000; (5) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2009 ", dated March 1, 2009, in the original principal amount of $96,490,000; (6) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010 ", dated March 1, 2010, in the original principal amount of $8,000,000; (7) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Taxable Series 2010 (Direct Subsidy -Build America Bonds) ", dated July 1, 2010, in the original principal amount of $60,625,000; (8) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010A ", dated July 1, 2010, in the original principal amount of $14,375,000; and (9) "City of Corpus Christi, Texas Utility System Revenue Bonds, Series 2012 ", dated April 1, 2012, in the original principal amount of $55,000,000. 11. The term Previously Issued Subordinate Lien Obligations shall mean the Series 2007 Certificates of Obligation. JJ. The term Priority Bonds shall mean the Previously Issued Priority Bonds, any Additional Priority Bonds, and obligations hereafter issued to refund any of the foregoing if issued in a manner so as to be payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System, as determined by the City Council in accordance with any applicable law. KK. The term Purchasers shall mean the initial purchaser or purchasers of the Bonds named in Section 31 of this Ordinance. LL. The term Series 2007 Certificates of Obligation shall mean the City's "Combination Tax and Utility System Revenue Certificates of Obligation, Series 2007 ", dated March 1, 2007, in the original principal amount of $6,985,000, being the only series of Subordinate Lien Obligations currently Outstanding. MM. The term Special Project shall mean, to the extent permitted by law, any water, sewer, wastewater reuse, or municipal drainage system property, improvement, or facility declared by the City, upon the recommendation of the City Council, not to be part of the System, for which the costs of acquisition, construction, and installation are paid from proceeds of Special Project Bonds (as hereinafter defined) being a financing transaction other than the A -16 issuance of bonds payable from ad valorem taxes, Junior Lien Pledged Revenues, or Net Revenues and for which all maintenance and operation expenses are payable from sources other than ad valorem taxes, Junior Lien Pledged Revenues, or Net Revenues, but only to the extent that and for so long as all or any part of the revenues or proceeds of which are or will be pledged to secure the payment or repayment of such costs of acquisition, construction, and installation under such Special Project Bonds. NN. The term Stated Maturity shall mean the annual principal payments of the Bonds payable on July 15 of each year, as set forth in Section 3 of this Ordinance. 00. The term Subordinate Lien Obligations shall mean (i) the Previously Issued Subordinate Lien Obligations, (ii) any Additional Subordinate Lien Obligations, and (iii) any obligations issued to refund the foregoing payable and equally and ratably secured from a s lien on and pledge of the Net Revenues that is subordinate and inferior to the lien there on and pledge thereof securing the payment of the Priority Bonds and the Junior Lien Obligations but superior to the lien thereon and pledge thereof securing the payment of the Inferior Lien Obligations, as determined by the City Council in accordance with any applicable law. PP. The term System shall mean and include, whether now existing or hereinafter added (including additions made from time to time in accordance with the provisions of the City ordinances authorizing the issuance of the Outstanding Priority Bonds), 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 to be a Special Project and not a part of the System and which are hereafter acquired or constructed by the City with the proceeds from the issuance of "Special Project Bonds ", which are hereby defined as being special revenue obligations of the City which are not secured by or payable from all or part of the Junior Lien Pledged Revenues and /or Net 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 Project Bonds ". SECTION 3: Pledge of Junior Lien Pledged Revenues. A. The City hereby covenants and agrees that the Junior Lien Pledged Revenues of the System are hereby irrevocably pledged to the payment and security of the Junior Lien Obligations, including the establishment and maintenance of the special funds or accounts created for the payment and security thereof, all as hereinafter provided; and it is hereby resolved that the Junior Lien Obligations, and the interest thereon, shall constitute a lien on and pledge of A -17 the Junior Lien Pledged Revenues and be valid and binding without any physical delivery thereof or further act by the City, and the lien created hereby on the Junior Lien Pledged Revenues for the payment and security of the Junior Lien Obligations, shall be, subject to the subordinate lien nature of the Junior Lien Pledged Revenues as herein described otherwise, prior in right and claim as to any other indebtedness, liability, or obligation of the City or the System. The Junior Lien Obligations are and will be secured by and payable only from the Junior Lien 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. Chapter 1208, as amended, Texas Government Code, applies to the issuance of the Bonds and the pledge of Junior Lien 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 anytime while the Junior Lien Obligations are Outstanding and unpaid such that the pledge of the Junior Lien Pledged Revenues granted by the City is to be subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, then in order to preserve to the registered owners of the Junior Lien Obligations the perfection of the security interest in this pledge, the City Council 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 this pledge to occur. SECTION 4: Rates and Charges. For the benefit of the Holders of the Bonds and in addition to all provisions and covenants in the laws of the State of Texas and in this Ordinance, the City hereby expressly stipulates and agrees, while any of the Junior Lien Obligations are Outstanding, to establish and maintain rates and charges for facilities and services afforded by the System that are reasonably expected, on the basis of available information and experience and with due allowance for contingencies, to produce Gross Revenues in each Fiscal Year sufficient: A. To pay all Operating Expenses, or any expenses required by statute to be a first claim on and charge against the Gross Revenues of the System. B. To produce Net Revenues, together with any other lawfully available funds, sufficient to satisfy the rate covenant contained in the ordinances authorizing the issuance of the Priority Bonds and to pay the principal of and interest on the Priority Bonds and the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Priority Bonds, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a prior and first lien on an pledge of the Net Revenues of the System; C. To produce Net Revenues, together with any other lawfully available funds, sufficient to pay the principal of and interest on the Junior Lien Obligations as the same become due and payable and to deposit the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Junior Lien Obligations, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a lien on and pledge of the Net Revenues, including the Junior Lien Pledged Revenues, that is junior and inferior to the lien thereon and pledge thereof securing the A -18 repayment of the Priority Bonds but senior and superior to the lien thereon and pledge thereof securing the repayment of the Inferior Lien Obligations; D. To produce Net Revenues, together with any other lawfully available funds, sufficient to pay the amounts that may be deposited in the special funds established for the payment of the Subordinate Lien Obligations; E. To produce Net Revenues, together with any other lawfully available funds, sufficient to pay the principal of and interest on the Inferior Lien Obligations as the same become due and payable and to deposit the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Inferior Lien Obligations, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a lien on and pledge of the Net Revenues that is subordinate and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds and the Junior Lien Obligations; and F. To pay, together with any other lawfully available funds, any other legally incurred Debt payable from the Net Revenues of the System and /or secured by a lien on any part of the System. The determination of the amount of principal of and interest on any obligations identified in this Section for the purpose of confirming the sufficiency of System rates and charges shall be made after giving consideration as an offset to debt service the receipt or anticipated receipt of a refundable tax credit or similar payment relating to any series of obligations irrevocably designated as refundable tax credit bonds pursuant to the City ordinance authorizing their issuance or otherwise relating thereto. SECTION 5: System Fund. The City hereby covenants, agrees, and ratifies its prior covenants and agreements that the Gross Revenues of the System shall be deposited, as collected and received, into a separate Fund or account (previously created and established and to be maintained with the Depository) known as the "City of Corpus Christi, Texas Utility System Revenue Fund" (the System Fund) and that the Gross Revenues of the System shall be kept separate and apart from all other funds of the City. All Gross Revenues deposited into the System Fund shall be pledged and appropriated to the extent required for the following uses and in the order of priority shown: A. First: To the payment of all necessary and reasonable Operating Expenses or other expenses required by statute to be a first charge on and claim against the revenues of the System. B. Second: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of the Previously Issued Priority Bonds and any Additional Priority Bonds hereafter issued by the City. C. Third: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of the Bonds and any Additional Junior Lien Obligations hereafter issued by the City. A -19 D. Fourth: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of the Previously Issued Subordinate Lien Obligations and any Additional Subordinate Lien Obligations hereafter issued by the City. E. Fifth: To the payment of the amounts that must be deposited in any special funds and accounts created and established for the payment, security, and benefit of the Previously Issued Inferior Lien Obligations and any Additional Inferior Lien Obligations hereafter issued by the City. Any Net Revenues remaining in the System Fund following such transfers may be used by the City for payment of other obligations of the System, and for any other lawful purpose; provided, however, that for so long as any Priority Bonds remain Outstanding, transfers made for purposes other than for payment of obligations of the System shall be made only at the end of the Year (if such limitation is imposed, and then, only to the extent imposed in the City ordinances authorizing the issuance of the Priority Bonds. SECTION 6: Bond Fund - Excess Funds. For purposes of providing funds to pay the principal of and interest on the currently Outstanding Junior Lien Obligations as the same become due and payable, the City agrees to maintain, at the Depository, a separate and special Fund or account to be created and known as the "City of Corpus Christi, Texas Utility System Junior Lien Revenue Bonds Interest and Sinking Fund" (the Bond Fund). The City covenants that there shall be deposited by an Authorized Official into the Bond Fund prior to each principal and interest payment date from the available Net Revenues an amount equal to one hundred per cent (100 %) of the amount required to fully pay the interest on and the principal of the currently Outstanding Junior Lien Obligations then falling due and payable, such deposits to pay maturing principal and accrued interest on the currently Outstanding Junior Lien Obligations to be made in substantially equal monthly installments on or before the 10th day of each month, beginning on or before the 10th day of the month next following the delivery of the Bonds to the Purchaser. As described further in Section 15 hereof, if the Junior Lien Pledged Revenues in any month are insufficient to make the required payments into the Bond Fund, then the amount of any deficiency in such payment shall be added to the amount otherwise required to be paid into the Bond Fund in the next month. The required monthly deposits to the Bond Fund for the payment of principal of and interest on the currently Outstanding Junior Lien Obligations shall continue to be made as hereinabove provided until such time as (i) the total amount on deposit in the Bond Fund and Reserve Fund is equal to the amount required to fully pay and discharge all Outstanding Junior Lien Obligations (principal and interest) or (ii) the Junior Lien Obligations are no longer Outstanding. Any proceeds of the Bonds, and investment income thereon, not expended for authorized purposes shall be deposited into the Bond Fund and shall be taken into consideration and reduce the amount of monthly deposits required to be deposited into the Bond Fund from the Net Revenues of the System. A -20 Any surplus proceeds from the sale of the Bonds, including investment income thereon, not expended for authorized purposes shall be deposited in the Bond Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in such Fund from the Junior Lien Pledged Revenues. SECTION 7: Reserve Fund. To accumulate and maintain a reserve for the payment of the Bonds equal to 110% of the Average Annual Debt Service Requirements or such lesser amount as restricted by the Code (calculated by the City Council at the beginning of each Fiscal Year and as of the date of issuance of the Bonds and each series of Additional Junior Lien Obligations) for the Bonds (the Required Reserve Amount), the City hereby creates and establishes, and shall maintain at a Depository a separate and special fund known as the "Corpus Christi, Texas Utility System Junior Lien Revenue Bonds Reserve Fund" (the Reserve Fund). Earnings and income derived from the investment of amounts held for the credit of the Reserve Fund shall be retained in the Reserve Fund until the Reserve Fund contains the Required Reserve Amount; thereafter, such earnings and income shall be deposited to the credit of the System Fund. All funds deposited into the Reserve Fund shall be used solely for the payment of the principal of and interest on the Bonds, when and to the extent other funds available for such purposes are insufficient, and, in addition, may be used to retire the last Stated Maturity or Stated Maturities of or interest on the Bonds. The City may acquire a Credit Facility or Facilities issued by a Credit Provider in amounts equal to all or part of the Required Reserve Amount for the Bonds in lieu of depositing cash into the Reserve Fund; provided, however, that no such Credit Facility may be so substituted unless the substitution of the Credit Facility will not, in and of itself, cause any ratings then assigned to the Bonds by any Rating Agency to be lowered and the resolution authorizing the substitution of the Credit Facility for all or part of the Required Reserve Amount for the Bonds contains (i) a finding that such substitution is cost effective and (ii) a provision that the interest due on any repayment obligation of the City by reason of payments made under such Credit Facility does not exceed the highest lawful rate of interest which may be paid by the City at the time of the delivery of the Credit Facility. The City reserves the right to use Junior Lien Pledged Revenues to fund the payment of (1) periodic premiums on the Credit Facility as a part of the payment of the City's Operating Expenses, and (2) any repayment obligation incurred by the City (including interest) to the Credit Provider, the payment of which will result in the reinstatement of such Credit Facility, prior to making payments required to be made to the Reserve Fund pursuant to the provisions of this Section to restore the balance in such fund the Required Reserve Amount for the Bonds. Until the issuance of any Additional Junior Lien Obligations (or as from time to time recalculated by the City as provided in the first paragraph of this Section), the Required Reserve Amount is $ . This amount shall be deposited to the Reserve Fund at such time as may be required pursuant to the provisions of this Section from Revenues, paid from the System Fund at such level of priority as specified in Section 12, by the deposit of monthly installments, made on or before the 10th day of each month following the month in which such obligation to fund the Reserve Fund arises, of not less than 1 /60th of the amount to be maintained in the Reserve Fund. As and when Additional Junior Lien Obligations are delivered or incurred, the Required Reserve Amount shall be increased, if required, to an amount calculated in the manner provided A -21 in the first paragraph of this Section. Any additional amount required to be maintained in the Reserve Fund shall be so accumulated by the deposit of all or a portion of the necessary amount from the proceeds of the issue or other lawfully available funds in the Reserve Fund immediately after the delivery of the then proposed Additional Junior Lien Obligations, or, at the option of the City, by the deposit of monthly installments, made on or before the business day before the 10th day of each month following the month of delivery of the then proposed Additional Junior Lien Obligations, of not less than 1 /60th of the additional amount to be maintained in the Reserve Fund by reason of the issuance of the Additional Junior Lien Obligations then being issued (or 1 /60th of the balance of the additional amount not deposited immediately in cash) (such deposits, the Required Reserve Fund Deposits), thereby ensuring the accumulation in the Reserve Fund of the appropriate Required Reserve Amount. When and for so long as the cash and investments in the Reserve Fund equal the Required Reserve Amount, no deposits need be made to the credit of the Reserve Fund; but, if and when the Reserve Fund at any time contains less than the Required Reserve Amount (other than as the result of the issuance of Additional Junior Lien Obligations as provided in the preceding paragraph), the City covenants and agrees to cure the deficiency in the Required Reserve Amount by resuming the Required Reserve Fund Deposits to the Reserve Fund from the Junior Lien Pledged Revenues in monthly deposit amounts equal to not less than 1 /60th of the Required Reserve Amount covenanted by the City to be maintained in the Reserve Fund. Any such deficiency payments shall be made on or before the 10th day of each month until the Required Reserve Amount has been fully restored. The City further covenants and agrees that, subject only to the prior payments to be made to the Bond Fund, the Junior Lien Pledged Revenues shall be applied and appropriated and used to establish and maintain the Required Reserve Amount and to cure any deficiency in such amounts as required by the terms of this Ordinance, any City ordinance authorizing the issuance of the Priority Bonds, and any other ordinance pertaining to the issuance of Additional Junior Lien Obligations. During such time as the Reserve Fund contains the Required Reserve Amount, the City Council may, at its option, withdraw all surplus funds in the Reserve Fund in excess of the Required Reserve Amount. Any such withdrawn surplus shall be deposited to the Bond Fund or used by the City for any other lawful purpose; provided, however, to the extent that such excess amount represents Bond proceeds, then such amount must be transferred to the Bond Fund or be otherwise used in accordance with then - applicable State law. In the event a Credit Facility issued to satisfy all or a part of the City's obligation with respect to the Reserve Fund causes the amount then on deposit in the Reserve Fund to exceed the Required Reserve Amount for the Bonds, the City may transfer such excess amount to any fund or funds established for the payment of or security for the Bonds (including any escrow established for the final payment of any such obligations pursuant to the provisions of Chapter 1207), or be used for any lawful purposes; provided, however, to the extent that such excess amount represents Bond proceeds, then such amount must be transferred to the Bond Fund or be otherwise used in accordance with then - applicable State law. Notwithstanding anything to the contrary contained in this Section, the requirements set forth above to fund the Reserve Fund in the amount of the Required Reserve Amount shall be suspended for such time as the Junior Lien Pledged Revenues for each Fiscal Year are equal to at A -22 least 110% of the Average Annual Debt Service Requirements. In the event that the Junior Lien Pledged Revenues for any two consecutive Fiscal Years are less than 110% (unless such percentage is below 100% in any Fiscal Year, in which case the hereinafter — specified requirements will commence after such Fiscal Year) of the Average Annual Debt Service Requirements, the City will be required to commence making the deposits to the Reserve Fund, as provided above, and to continue making such deposits until the earlier of (i) such time as the Reserve Fund contains the Required Reserve Amount or (ii) the Junior Lien Pledged Revenues for a Fiscal Year have been equal to not less than 110% of the Average Annual Debt Service Requirements. SECTION 8: Deficiencies - Excess Junior Lien Pledged Revenues. A. If on any occasion there shall not be sufficient Junior Lien Pledged Revenues to make the required deposits into the Bond Fund, then such deficiency shall be cured as soon as possible from the next available unallocated Junior Lien Pledged Revenues, or from any other sources available for such purpose, and such payments shall be in addition to the amounts required to be paid into these Funds or accounts during such month or months. B. Subject to making the required deposits to the Bond Fund when and as required by any ordinance or resolution authorizing the issuance of the currently Outstanding Priority Bonds, the Junior Lien Obligations and the Inferior Lien Obligations, the excess Net Revenues of the System may be used by the City for any lawful purpose (as further provided in Section 12 hereof). SECTION 9: Payment of Bonds. While any of the Bonds are Outstanding, the Authorized Officials shall cause to be transferred to the Paying Agent/Registrar therefor, from funds on deposit in the Bond Fund, amounts sufficient to fully pay and discharge promptly each installment of interest on and principal of the Bonds as such installment accrues or matures; such transfer of funds must be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the date a debt service payment is due on the Bonds. SECTION 10: Investments. Funds held in any Fund or account created, established, or maintained pursuant to this Ordinance shall, at the option of the City, be placed in time deposits, certificates of deposit, guaranteed investment contracts or similar contractual agreements as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, or any other law, and secured (to the extent not insured by the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, including investments held in book -entry form, in securities including, but not limited to, direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers Home Administration, Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all such deposits and investments A -23 shall be made in such a manner that the money required to be expended from any Fund or account will be available at the proper time or times. Such investments (except State and Local Government Series investments held in book entry form, which shall at all times be valued at cost) shall be valued in terms of current market value within 45 days of the close of each Fiscal Year. All interest and income derived from deposits and investments in the Bond Fund immediately shall be credited to, and any losses debited to, the Bond Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Bonds. SECTION 11: Application of the Covenants and Agreements of the Priority Bonds. It is the intention of the City Council and accordingly hereby recognized and stipulated that the provisions, agreements, and covenants contained herein bearing upon the management and operations of the System, and the administering and application of Gross Revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements, and covenants contained in the City ordinances authorizing the issuance of the Priority Bonds now or hereafter Outstanding, and to the extent of any irreconcilable conflict between the provisions contained herein and in the City ordinances authorizing the issuance of the Priority Bonds now or hereafter Outstanding, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance, especially the priority of rights and benefits conferred thereby to the holders of the Priority Bonds now or hereafter Outstanding. It is expressly recognized that prior to the issuance of any Additional Junior Lien Obligations or Additional Inferior Lien Obligations, that the City must comply with each of the conditions precedent contained in this Ordinance and the City ordinances authorizing the issuance of the then - Outstanding Priority Bonds, as appropriate. SECTION 12: Issuance of Additional Priority Bonds, Additional Junior Lien Obligations, Additional Subordinate Lien Obligations, and Additional Inferior Lien Obligations. The City hereby expressly reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien on the Net Revenues of the System with the following priorities, without limitation as to principal amount, but subject to any terms, conditions, or restrictions applicable thereto under existing ordinances, laws, or otherwise: A. Additional Priority Bonds payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System upon satisfying each of the conditions precedent contained in the City ordinances authorizing the issuance of the Priority Bonds now or hereafter Outstanding. B. Additional Junior Lien Obligations, secured by and payable from the Junior Lien Pledged Revenues, which includes (primarily) a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds but senior and superior to the lien there on and pledge thereof securing the repayment of the Subordinate Lien Obligations and the Inferior Lien Obligations, upon satisfying each of the following conditions precedent: (1) 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 A -24 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 Net 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 Net 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 Junior Lien Obligations, but such certificate shall not be dated prior to the date an ordinance is passed authorizing the issuance of such Additional Junior Lien Obligations. (2) Conditions Precedent for Issuance of Additional Junior Lien Obligations - Capital Improvements and for any other Lawful Purpose except for Capital Additions or for Refunding. The City covenants and agrees that Additional Junior Lien Obligations 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 (3) this Section and Section 20 hereof, respectively) unless and until the conditions precedent in Subsection (1) above have been satisfied and, in addition thereto, the City has secured a certification of the City Manager to the effect that, according to the books and records of the City, the Net Earnings (as hereinafter defined) for the preceding Fiscal Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Junior Lien Obligations is adopted are at least equal to 1.10 times the Average Annual Debt Service Requirements for all then - Outstanding Priority Bonds or Junior Lien Obligations after giving effect to the Additional Junior Lien Obligations then proposed. The foregoing notwithstanding, the City covenants and agrees that Additional Junior Lien Obligations may not be issued for the purpose of financing Capital Improvements when other Outstanding Junior Lien Obligations which have been issued for the purpose of financing Capital Additions and for which capitalized interest for such other Junior Lien Obligations has been provided for at least the twelve months subsequent to the date of issuance of the Additional Junior Lien Obligations then proposed to be issued, unless the conditions precedent in Subsection (1) 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 (2) as set forth above cannot be satisfied, the City has satisfied the conditions precedent in Subsection (3)(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 certification of the City Manager to the effect that, according to the books and records of the City, the Net Earnings for the preceding Fiscal Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Junior Lien Obligations is adopted are at least equal to 1.10 times the Average Annual Debt Service Requirements for all then - Outstanding Priority Bonds and Junior Lien Obligations (other than any Priority Bonds or Junior Lien Obligations 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 Junior Lien Obligations proposed to be issued) after giving effect to the Additional Junior Lien Obligations then proposed to be issued. A -25 (3) Conditions Precedent for Issuance of Additional Junior Lien Obligations - Capital Additions: Initial Issue. The City covenants and agrees that Additional Junior Lien Obligations will not be issued for the purpose of financing Capital Additions, unless the same conditions precedent specified in Subsection (1) above have been satisfied and, in addition thereto, either the relevant conditions precedent specified in Subsection (1) 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 Fiscal 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 an engineering report prepared thereby for each Capital Addition, the projected Net Earnings for each of the five Fiscal Years subsequent to the date the Capital Addition becomes commercially operative (as estimated in the engineering report) will be equal to at least 1.10 times the Average Annual Debt Service Requirements for the currently Outstanding Junior Lien Obligations or incurred and all Additional Junior Lien Obligations 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 of obligations for the Capital Additions is to be delivered through the fifth Fiscal Year subsequent to the date the Capital Addition is estimated to become commercially operative. (4) Completion Issues. Once a Capital Addition has been initiated by meeting the conditions precedent specified in Subsection (3)(i) and (ii) above and the initial Junior Lien Obligations issued therefor are delivered, the City reserves the right to issue Additional Junior Lien Obligations 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 (3)(i) and (ii) or Subsection (1) 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 Net Revenues of the System to be Outstanding after the issuance of the Additional Junior Lien Obligations then being issued for the period (the Forecast Period) of each ensuing Fiscal Year through the fifth Fiscal 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 Net Revenues of the System will be adequate to pay all the obligations, payable from the Junior Lien Pledged Revenues of the A -26 System to be Outstanding after the issuance of the Additional Junior Lien Obligations then being issued for the Forecast Period and (B) the proceeds from the sale of such Additional Junior Lien Obligations are estimated to be sufficient to complete such acquisition and construction. (5) Computations; Reports. With reference to Junior Lien Obligations anticipated and estimated to be issued or incurred, the Average Annual Debt Service 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) after giving effect to the receipt or anticipated receipt of a refundable tax credit or similar payment relating to any series of Junior Lien Obligations irrevocably designated as refundable tax credit bonds, which payment shall be treated as an offset to regularly scheduled debt service of the series of Junior Lien Obligations to which it relates. In the preparation of the engineering report required in Subsection (3)(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 Junior Lien Obligations for Capital Additions, the certification of the City Manager and the Engineer of 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. (6) Combination Issues. Junior Lien Obligations for Capital Additions may be combined in a single issue with Junior Lien Obligations for Capital Improvements or for any lawful purpose provided the conditions precedent set forth in Subsection (2) through (4) are complied with as the same relate to the appropriate purpose. (7) 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 and those items identified in the SECOND level of priority in Section 12 hereof, but not expenditures which, under standard accounting practice, should be charged to capital expenditures. (8) Determination of Net Earnings. In making a determination of Net Earnings for any of the purposes described in this Section, the City Manager 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 City Manager's certification or opinion based on such change in rates and charges being in effect for the entire period covered by the City Manager's certificate or opinion. C. The City may issue Additional Subordinate Lien Obligations secured by a lien on and pledge of the Net Revenues of the System subordinate and inferior to the lien thereon and pledge thereof securing the Priority Bonds and that is included in the Junior Lien Pledged A -27 Revenues, respectively, but senior and superior to the lien there on and pledge thereof securing the repayment of the Inferior Lien Obligations, on the terms and conditions desired by the City, subject only to the limitations imposed by applicable and upon satisfying each of the conditions precedent contained in the ordinances authorizing the issuance of the currently- Outstanding Priority Bonds, this Ordinance, and the Previously Issued Subordinate Lien Obligations. D. The City may issue Additional Inferior Lien Obligations secured by a lien on and pledge of the Net Revenues of the System subordinate and inferior to the lien thereon and pledge thereof securing the Priority Bonds and that is included in the Junior Lien Pledged Revenues, respectively, on the terms and conditions desired by the City, subject only to the limitations imposed by applicable and upon satisfying each of the conditions precedent contained in the ordinances authorizing the issuance of the currently- Outstanding Priority Bonds, this Ordinance, and, to the extent applicable, the Federal Contract. SECTION 13: Refunding Bonds. The City reserves the right to issue refunding bonds to refund all or any part of the currently Outstanding Debt, pursuant to any applicable law then available, upon such terms and conditions as the City Council may deem to be in the best interest of the City, and if less than all such currently Outstanding Debt are refunded, the conditions precedent prescribed for the issuance of Additional Junior Lien Obligations set forth in Section 19 of this Ordinance shall be satisfied and the City Managers' certification required in Section 19 shall give effect to the Debt Service Requirements of the proposed refunding bonds (but shall not give effect to the Debt Service Requirements of the obligations being refunded following their cancellation or provision being made for their payment); provided that, if after giving effect to any such partial refunding the average annual Debt Service Requirements for all Priority Bonds and Junior Lien Obligations will be reduced after giving effect to the then - anticipated refunding, then the test set forth in Subsection 2 of Section 19 shall be applied by substituting "1.00" for "1.10 ". EXHIBIT B Ordinance Provisions Relating to Junior Lien Obligations 81222633.2 SECTION 1: FORMS. A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including insurance legends in the event the Bonds, or any Stated Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an opinion of counsel) thereon as may, consistent herewith, be established by the City or determined by the officers executing the Bonds as evidenced by their execution thereof. Any portion of the text of any Bond may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Bonds as evidenced by their execution thereof, but the Initial Bond(s) submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. B. FORM OF DEFINITIVE BOND. REGISTERED NO. REGISTERED PRINCIPAL AMOUNT United States of America State of Texas Counties of Nueces, Aransas, Kleberg, and San Patricio CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE IMPROVEMENT BOND SERIES 2012A Bond Date: , 2012 REGISTERED OWNER: PRINCIPAL AMOUNT: Interest Rate: Stated Maturity: CUSIP No.: The City of Corpus Christi, Texas (the "City "), a body corporate and a municipal corporation in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amount hereof from the Bond Date or from the most recent interest payment date to which interest has been paid or duly provided for until such Principal Amount has become due and payment thereof has been made or duly provided for, to the earlier B -1 of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day year of twelve 30 -day months; such interest being payable on January 15 and July 15 of each year commencing 15, 2013. 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 , 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 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 $ (herein sometimes called the "Bonds "), issued for the purposes of (i) acquiring, purchasing, constructing, improving, repairing, extending, equipping, and renovating the City's combined waterworks system, wastewater disposal system and gas system (collectively, the "System ") and (ii) to pay the costs of issuing the Bonds. B -2 The Bonds stated to mature on July 15, 20 are referred to herein as the "Term Bonds ". The Term Bonds are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Debt Service Fund (but not the Reserve Fund) for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on July 15 in each of the years as set forth below: Term Bonds Stated to Mature on July 15, 20 Principal Year Amount ($) *Payable at stated maturity The principal amount of a Term Bond required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Bonds of such stated maturity which, at least 50 days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City with money in the Debt Service Fund (but not the Reserve Fund), or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. The City reserves the right to redeem the Bonds stated to mature on and after July 15, 20 , in whole or in part, on July 15, 20 , 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. 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 B -3 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 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 may be 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 B -4 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. 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 B -5 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. [The remainder of this page intentionally left blank.] 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) CITY OF CORPUS CHRISTI, TEXAS Mayor [The remainder of this page intentionally left blank.] C. 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 (SEAL) Comptroller of Public Accounts of the State of Texas D. 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/Regi strar. Registered this date: BOKF NA, dba BANK OF TEXAS, Austin, Texas, as Paying Agent/Registrar By: Authorized Signature E. FORM OF ASSIGNMENT. AS SIGNMENT 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: [The remainder of this page intentionally left blank] F. 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: The City of Corpus Christi, Texas (the City), a body corporate and municipal corporation in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above on the fifteenth day of July in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Years of Principal Interest Stated Maturity Amounts ($) Rates ( %) (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amount hereof from the Bond Date, or from the most recent interest payment date to which interest has been paid or duly provided for until the Principal Amount has become due and payment thereof has been made or duly provided for, at the per annum rates of interest specified above computed on the basis of a 360 -day year of twelve 30 -day months; such interest being payable on January 15 and July 15 of each year, commencing 15, 2013. G. 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. SECTION 2: 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 21 and 30 of this Ordinance have the meanings assigned to them in such respective Sections. A. The term "Account" shall mean any account created, established and maintained under the terms of any ordinance authorizing the issuance of Priority Bonds. B. The term "Accountant" shall mean a nationally recognized independent certified public accountant, or an independent firm of certified public accountants. C. 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. D. 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). E. The term "Attorney General" shall mean the Office of the Attorney General of the State of Texas. F. The term "Authorized Denomination" shall have the meaning given such term in Section 2 of this Ordinance. G. 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. H. The term "Base Ordinance" shall mean the ordinance authorizing the issuance of the Series 1990 Bonds. I. The term "Bonds" shall have the meaning given such term in Section 1 of this Ordinance. J. 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. K. The term "Capital Improvements" shall mean any capital extensions, improvements and betterments to the System other than Capital Additions. L. The term "Capitalized Interest Account" shall mean the Account by that name which may be created within the Debt Service Fund. M. The terms "City" and "Issuer" shall have the meaning given such terms in the preamble of this Ordinance. B -11 N. 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. O. The term "Comptroller of Public Accounts" shall mean the Office of the Comptroller of Public Accounts of the State of Texas. P. 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. Q. 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. R. The term "Debt Service Fund" shall have the meaning given such term in Section 9 of this Ordinance. S. The term "DTC" shall have the meaning given such term in Section 4 to this Ordinance. T. 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. U. 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. V. The term "Fund" shall mean any fund created, established and maintained under the terms of any ordinance authorizing the issuance of Priority Bonds. W. The term "Government Obligations" shall mean (i) with respect to any Previously Issued Priority Bonds except the Series 2009 Bonds, the Series 2010 Bonds, the Series 2010 Taxable Bonds, and the Series 2010A 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 Series 2010 B -12 Bonds, the Series 2010 Taxable Bonds, the Series 2010A 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, (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 17 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, the Series 2010 Bonds, the Series 2010 Taxable Bonds, and the Series 2010A 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). X. 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 System, other than those amounts subject to payment to the United States of America as rebate pursuant to section 148 of the Code. Y. 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. Z. The terms "Net Revenues of the System" and "Net Revenues" shall mean all Gross Revenues less Operating Expenses. AA. 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. B -13 BB. The term "Outstanding" shall mean, as of the date of determination, all Priority Bonds theretofore issued and delivered except: (1) those Priority Bonds theretofore canceled by the respective paying agents for such Priority Bonds or delivered to such paying agents for cancellation; (2) 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; (3) 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 (4) those Priority Bonds for which the payment of principal thereof, premium, if any, and interest thereon to Stated Maturity re redemption has been duly provided for by the City by the deposit in trust of money or Government Obligations, or both. CC. 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. DD. The term "Pledged Revenues" shall mean (1) the Net Revenues, plus (2) 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. EE. The term "Previously Issued Priority Bonds" shall have the meaning given said term in the preamble to this Ordinance. FF. The term "Priority Bonds" shall mean the Previously Issued Priority Bonds, the Bonds, and any Additional Priority Bonds. GG. 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 B -14 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. HH. The term "Purchaser" shall have the meaning given such term in Section 25 of this Ordinance. II. The term "Rating Agency" shall mean any nationally recognized securities rating agency which has assigned a rating to the Priority Bonds. JJ. The term "Required Amount" shall have the meaning given such term in Section 10 of this Ordinance. KK. The term "Reserve Fund" shall have the meaning given such term in Section 10 of this Ordinance. LL. The term "Reserve Fund Obligations" shall mean cash, Eligible Investments, any Credit Facility, or any combination of the foregoing. MM. 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 -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; 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, the term "Series 2010 Bonds" shall mean the B -15 $8,000,000 City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010, authorized by the ordinance adopted by the City on March 9, 2010, the term "Series 2010 Taxable Bonds" shall mean the $60,625,000 City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Taxable Series 2010 (Direct Subsidy —Build America Bonds), authorized by the ordinance adopted by the City concurrently with the adoption of this Ordinance on June 22, 2010, and the term "Series 2010A Bonds" shall mean the $14,375,000 City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010A, authorized by the ordinance adopted by the City on June 22, 2010. NN. 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. 00. The term "System" shall mean and include, for so long as the Previously Issued Priority Bonds (except for the Series 2010 Bonds, the Series 2010 Taxable Bonds, and the Series 2010A Bonds, which are excluded from such definition for this purpose) 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 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 ". PP. The term "System Fund" shall have the meaning given such term in Section 8 of this Ordinance. QQ. The term "Term Bonds" shall have the meaning given such term in Section 2 of this Ordinance. B -16 RR. 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. SS. 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 3: 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 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 4: 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 5: 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 B -17 City a separate fund entitled the "City of Corpus Christi Utility System Revenue Improvement 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. 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 6: 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 Improvement 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 after giving consideration as an offset to debt service the receipt or anticipated receipt of a refundable tax credit or similar payment relating to a series of Priority Bonds irrevocably designated as refundable tax credit bonds pursuant to a prior parity lien ordinance amendment (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. Upon the issuance of the Bonds, the Required Amount shall be $ , representing an increase of $ attributable to the issuance of the Bonds. As permitted by Section 18B, the City will satisfy this increase in the Required Amount attributable to the issuance of the Bonds by depositing not less B -18 than $53,367.85 to the Reserve Fund not later than the 10th day of each month for 60 consecutive months, commencing , 2012. 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; provided further, however, that such transfer to the System Fund shall be spent only in accordance with applicable law including (but not limited to) restrictions on the expenditure of such funds to the extent that the same were originally derived from proceeds of bonds or other evidences of indebtedness. 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 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 18.B of this Ordinance. B -19 SECTION 7: 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 8: 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 9: 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. SECTION 10: 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 B -20 (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 18.B of this Ordinance, unless a Credit Facility is deposited in the 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 11: Deficiencies. If on any occasion there shall not be sufficient Pledged Revenues to make the deposits and other applications of money required by Section 14 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 14) 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 12: 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 B -21 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 Paying Agent/Registrar, or the bond registrar for each series of Priority Bonds shall destroy all paid Priority Bonds, as applicable, and furnish the City with an appropriate certificate of cancellation or destruction. SECTION 13: 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 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 14: 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 B -22 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 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 B -23 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 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 B -24 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) after giving effect to the receipt or anticipated receipt of a refundable tax credit or similar payment relating to a series of Priority Bonds irrevocably designated as refundable tax credit bonds, which payment shall be treated as an offset to regularly scheduled debt service of the series of Priority Bonds to which it relates. 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 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 B -25 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 15: 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 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. B -26 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 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 B -27 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 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 B -28 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 (1) 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 and (2) the receipt or anticipated receipt of a refundable tax credit or similar payment relating to a series of Priority Bonds irrevocably designated as refundable tax credit bonds, which payment shall be treated as one offset to regularly scheduled debt service of the series of Priority Bonds to which it relates.. The foregoing notwithstanding, such rates, charges and 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 B -29 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. EXHIBIT C Purchase Contract 81222633.2 EXHIBIT D Paying Agent/Registrar Agreement 81222633.2 EXHIBIT E Description of Annual Financial Information 81222633.2 EXHIBIT F Form of Credit Agreement N/A 81222633.2 EXHIBIT G DTC Letter of Representations 81222633.2 AGENDA MEMORANDUM First Reading at the City Council Meeting of August 21, 2012 Second Reading at the City Council Meeting of August 28, 2012 DATE: August 21, 2012 TO: Ronald L. Olson, City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP ©cctexas.com (361) 826 -3227 Approval for the resale of twenty -two (22) foreclosed properties CAPTION: Ordinance authorizing the resale of twenty -two (22) properties for $76,450.00 which were foreclosed upon for failure to pay ad valorem taxes, of which the City shall receive $7,583.99 plus $12,276.42 for partial payment of City paving and demolition liens. PURPOSE: Nueces County, as trustee for each of the taxing entities, has received offers to purchase properties that have been foreclosed upon for failure to pay ad valorem taxes. The governing body from each of the taxing entities (the City of Corpus Christi, Nueces, County, Corpus Christi Independent School District, and Del Mar College) must approve the offers for resale. BACKGROUND AND FINDINGS: Properties within the City of Corpus Christi are periodically foreclosed due to non- payment of ad valorem taxes. The City and Nueces County entered into an Interlocal Agreement for the collection of delinquent ad valorem taxes. Nueces County has contracted with the law firm of Linebarger, Goggan, Blair, & Sampson, L.L.P. to pursue collections of delinquent ad valorem taxes. When all avenues for collections are exhausted, foreclosed properties with delinquent ad valorem taxes are offered for sale at a public auction by the Sheriff. The opening bid at the "Sheriff's sale" is set by law and must be either the aggregate amount of taxes, municipal liens, and court costs due under the judgment or the adjudged value of the property, whichever is lower. (The adjudged value is the value stated on the face of the judgment and is the most recent tax appraisal value certified by the Nueces County Appraisal District.) If nobody is willing to pay the opening bid amount for the property, then the Sheriff strikes it off (sells it) to the taxing entities. The taxing entities then get the property in lieu of their delinquent taxes. The law firm will then put the property on their tax resale list, will nail a For Sale" sign on the property, and will solicit purchase offers from the public. When an offer or offers are received, they then bring the highest offer forward for consideration and action by the governing bodies of the involved taxing entities. All the entities must approve the offer, or it is rejected. The law firm has proposed the resale of twenty -three (23) properties at the bid prices listed in Exhibit A. Neighborhood Services has identified one property for City use — leaving twenty -two (22) properties for resale. The monies received from this sale are distributed pursuant to the property tax code. The net proceeds from the sale are first applied to pay off the outstanding court costs and the remaining funds are applied on a pro rata basis to each taxing jurisdiction. Approval of the ordinance will authorize the Nueces County Judge to execute a Resale Deed for the properties listed so they can be returned to the property tax roll for the upcoming year. ALTERNATIVES: n/a OTHER CONSIDERATIONS: The list of resale properties received from the law firm contained twenty -three (23) properties. Each of the twenty -three (23) properties was reviewed by Neighborhood Services, Engineering Services, and Parks and Recreation for potential City use. One property at 2522 Sarita was identified by Neighborhood Services for potential City use. Neighborhood Services is interested in repairing the house located at this address to sell to low income families. Since Nueces County holds title as Trustee for themselves, the City, Corpus Christi Independent School District, and Del Mar College, the City's next step would be to acquire the interests from each of these entities by making an offer for the property. This action will take place at a later time as Neighborhood Services proceeds with moving forward on this project. FINANCIAL IMPACT: ❑ Not Applicable ❑ Operating Expense X Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budget - - - - Encumbered /Expended amount of (date) - - - This item - $ 19,860.41 - $ 19,860.41 BALANCE - $ 19,860.41 - $ 19,860.41 FUND(S): General Fund and Debt Service Fund COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the ordinance as presented. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON-EMERGENCY: This item is not an emergency and is scheduled for approval in two readings. DEPARTMENTAL CLEARANCES: • Legal Department LIST OF SUPPORTING DOCUMENTS: Exhibit A — Tax Resale Property List Ordinance cc: Lisa Aguilar, Assistant City Attorney Eddie Houlihan, Assistant Director of Management and Budget Margie C. Rose, Assistant City Manager EXHIBIT A TAX RESALE PROPERTY LIST Item # Suit Number Property Location Legal Description Amount of Bid City's Portion City's Portion of City Paving and Demo T,1. 1 1624 85-6479-E 1517 Lexingtom Ave. 1593-0001-0160; Lot 16, Block 1, Citizens Addition $ 550.00 $ - $ 550.00 2 1718 09-3555-H 1626 Caldwell Dr. 8649-0004-0020; Lot 2, Block 4, Sutherland Addition 1,000.00 - - 3 1735 09-2055-H 3028 Reyna St. 4047-0004-0140; Lot 14, Block 'D', La Gloria Addition 1,500.00 - - 4 1739 09-4816-B 1214 Clover Circle 7645-0001-0540; Lot 54, Block 1, San Simeon 3,800.00 252.53 1,166.76 5 1750 07-2217-G 421 Atlantic St. 2050-0028-0280; Lot 28, Block 28, Del Mar Addition 4,000.00 366.62 119.10 6 1752 08 5972 E 2522 Santa St. 8299 0006 0110; Lot 11, Block 6, Southwest Heights Addition 5,000.00 508.52 7 1753 09-2359-E 4309 Jacquelyn Dr. 1603-0005-0070; Lot 7, Block 5, Claremont Place 4,000.00 463.19 192.79 8 1756 09-2839-C 1334 Kennedy Ave. 5711-0003-0010; Lots 1 and 2, Block 3, Nelson Addition No. 2 2,000.00 107.95 455.39 9 1758 09-3630-C 5406 Nicole Court 2327-0002-0130; Lot 13, Block 2, Esperanza Estates Subdivision 2,500.00 165.23 462.95 10 1763 07-2080-G 513 Culberson 3795-0005-0015; The North 65 feet of Lot 1, Block 5 Jones Addition 2,500.00 90.39 - 11 1764 08-1390-A 706 Sharon Dr. 9764-0007-0410; Lot 41, Block 7, Windsor Park Unit 1 2,500.00 5.40 22.49 12 1765 08-5353-C 1130 Manchester Ave. 4740-0002-0050; Lot 5, Block 2, Manchester Place Subdivision 8,000.00 1,085.71 1,816.84 13 1766 09-4140-B 2622 Wainwright 4032-0005-0050; Lot 5, Block 5, La Arboleda Addition 2,000.00 43.41 5.32 14 1768 10-1224-D 3605 Stinson 0072-0010-0120; Lot 12, Block 10, Airport Park Addition 1,000.00 25.90 - 15 1771 09-2848-C 1005 Stone St. 2550-0010-0090; Lot 9, Block 10, Flour Bluff Point 2,500.00 115.36 133.95 16 1773 10-2452-G 925 McDonald St. 2540-0012-0070; Lot 7, Block 12, Flour Bluff Park 2,500.00 118.99 1,022.40 17 1774 10-0677-A 4621 Elvira Dr. 4072-0002-0080; Lot 8, Block 2, La Pascua #2 Subdivision 2,100.00 193.30 144.26 18 1776 07-3493-F 1418 Main Dr. 3593-0004-0370; Lot 37, Block 4, Hudson Acres Addition 1,000.00 - - 19 1777 07-3493-F 1414 Main Dr. 3593-0004-0380; Lot 38, Block 4, Hudson Acres Addition 1,000.00 - - 20 1778 09-2061-C 1147 Lolita St. 4100-0002-0065; The East 33 feet of Lot 6, Block 2, Laguna Acres Addition 2,000.00 30.21 253.60 21 1779 08-1962-A 310 Melody Lane 2486-0008-0236; Tract 'D', Lot 23, Block 'H', Flour Bluff Estates 1,500.00 - - 22 1784 08-4875-G 5125 Williams Dr. 2709-0002-0160; Lot 16, Block 2, Gardendale No. 2 Addition 27,000.00 4,519.80 5,930.57 23 1786 09-1560-F 808 25th St. 3837-0001-0050; Lots 5, 6 and 7, Juarez Addition 1,500.00- - Subtotal i'1 Minus: Property Pulled by the City of Corpus Christi 6 1752 08-5972-E 2522 Sarita St. 8299-0006-0140; Lot 14, Block 6, Southwest Heights Addition (5,000.00) (508.52) - Total 3 Ordinance authorizing the resale of twenty -two (22) properties for $76,450.00 which were foreclosed upon for failure to pay ad valorem taxes, of which the City shall receive $7,583.99, plus $12,276.42 for partial payment of City paving and demolition liens. Be it ordained by the City Council of the City of Corpus Christi, Texas, that: SECTION 1. That pursuant to Section 34.05 of the Tax Code, the governing body of the City of Corpus Christi authorizes the resale of twenty -two (22) properties listed on the attached and incorporated Exhibit A for $76,450.00 which were foreclosed upon for failure to pay ad valorem taxes, of which the City shall receive $7,583.99 plus $12,276.42 for partial payment of City paving and demolition liens. SECTION 2. That the Nueces County Judge is authorized to execute a resale deed upon payment to the City of the City's share of the tax resale proceeds. EXHIBIT A TAX RESALE PROPERTY LIST Item # Suit Number a Location Property Legal Description Amount of Bid City's Portion City's Portion of City Paving and Demo LiPi, 1 1624 85-6479-E 1517 Lexingtom Ave. 1593-0001-0160; Lot 16, Block 1, Citizens Addition $ 550.00 $ - $ 550.00 2 1718 09-3555-H 1626 Caldwell Dr. 8649-0004-0020; Lot 2, Block 4, Sutherland Addition 1,000.00 - - 3 1735 09-2055-H 3028 Reyna St. 4047-0004-0140; Lot 14, Block D', La Gloria Addition 1,500.00 - - 4 1739 09-4816-B 1214 Clover Circle 7645-0001-0540; Lot 54, Block 1, San Simeon 3,800.00 252.53 1,166.76 5 1750 07-2217-G 421 Atlantic St. 2050-0028-0280; Lot 28, Block 28, Del Mar Addition 4,000.00 366.62 119.10 6 1752 08 5972 E 2522 Sarita St. 8299 0006 0110; Lot I1, Block 6, Southwest Heights Addition 5,000.00 508.52 7 I753 09-2359-E 4309 Jacquelyn Dr. 1603-0005-0070; Lot 7, Block 5, Claremont Place 4,000.00 463.19 192.79 8 1756 09-2839-C 1334 Kennedy Ave. 5711-0003-0010; Lots 1 and 2, Block 3, Nelson Addition No. 2 2,000.00 107.95 455.39 9 1758 09-3630-C 5406 Nicole Court 2327-0002-0130; Lot 13, Block 2, Esperanza Estates Subdivision 2,500.00 165.23 462.95 10 1763 07-2080-G 513 Culberson 3795-0005-0015; The North 65 feet of Lot 1, BIock 5 Jones Addition 2,500.00 9039 - 11 1764 08-1390-A 706 Sharon Dr. 9764-0007-0410; Lot 41, Block 7, Windsor Park Unit 1 2,500.00 5.40 22.49 12 1765 08-5353-C 1130 Manchester Ave. 4740-0002-0050; Lot 5, Block 2, Manchester Place Subdivision 8,000.00 1,085.71 1,816.84 13 1766 09-4140-B 2622 Wainwright 4032-0005-0050; Lot 5, Block 5, La Arboleda Addition 2,000.00 43.41 5.32 14 1768 10-1224-D 3605 Stinson 0072-0010-0120; Lot 12, Block 10, Airport Park Addition 1,000.00 25.90 - 15 1771 09-2848-C 1005 Stone St. 2550-0010-0090; Lot 9, Block 10, Flour Bluff Point 2,500.00 115.36 133.95 16 1773 10-2452-0 925 McDonald St. 2540-0012-0070; Lot 7, Block 12, Flour Bluff Park 2,500.00 118.99 1,022.40 .17 1774 10-0677-A 4621 Elvira Dr. 4072-0002-0080; Lot 8, Block 2, La Pascua #2 Subdivision 2,100.00 193.30 144.26 18 1776 07-3493-F 1418 Main Dr. 3593-0004-0370; Lot 37, Block 4, Hudson Acres Addition 1,000.00 - - 19 1777 07-3493-F 1414 Main Dr. 3593-0004-0380; Lot 38, Block 4, Hudson Acres Addition 1,000.00 - - 20 1778 09-2061-C 1147 Lolita St. 4100-0002-0065; The East 33 feet of Lot 6, Block 2, Laguna Acres Addition 2,000.00 30.21 253.60 21 1779 08-1962-A 310 Melody Lane 2486-0008-0236; Tract D', Lot 23, Block 'H', Flour Bluff Estates 1,500.00 - - 22 1784 08-4875-G 5125 Williams Dr. 2709-0002-0160; Lot 16, Block 2, Gardendale No. 2 Addition 27,000.00 4,519.80 5,930.57 23 1786 09-1560-F 808 25th St. 3837-0001-0050; Lots 5, 6 and 7, Juarez Addition 1,500.00 - - Subtotal B °i ...N as 4N44, m..'' Minus: Property Pulled by the City of Corpus Christi 6 I 1752 08-5972-Ea 2522 Sarita St. 8299-0006-0140; Lot 14, Block 6, Southwest Heights Addition (5,000.00) (508.52) Total 7 g- That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED, this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor Page 1 of 2 Ordinance Appropriating $98,299 from the Federal Aviation Administration Grant No. 3 -48- 0051 - 046 -2010 in the No. 3020 Airport Capital Improvement Fund to modify the Terminal Building; amending the FY 2012 -2013 Capital Budget adopted by Ordinance No. 029565 to add Project No. E09046GR46 and increase revenues and expenditures by $98,299. Be it ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1. That $98,299 from the Federal Aviation Administration Grant No. 3 -48- 0051- 046 -2010 is appropriated in the No. 3020 Airport Capital Improvement Fund to modify the Terminal Building at Corpus Christi International Airport. SECTION 2. That the FY 2012 -2013 capital budget adopted by Ordinance 029565 is amended to increase revenues and expenditures by $98,299. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary 0025_2_Ord- approp -FAA Grant 7 -26 -12 Joe Adame Mayor Page 2of2 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED, this the day of , 2012. ATTEST: Armando Chapa City Secretary 0025_2_Ord- approp -FAA Grant 7 -26 -12 Joe Adame Mayor AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: TO: July 13, 2012 Ronald L. Olson, City Manager FROM: Annette Rodriguez, Director of Public Health Annetter(c�cctexas. com 361- 826 -7205 Women's, Infant and Children's Grant Amendment Approval of amendment and appropriation of funds CAPTION: Ordinance authorizing the City Manager or his designee to execute all documents necessary to accept and appropriate a grant amendment in the amount of $32,000 from the Texas department of State Health Services in the Health Grants Fund No. 1066, increasing the award amount for the peer counselor and registered dietician projects by $12,000 and $20,000 respectively. PURPOSE: The Women's, Infant and Children's Grant allows the Health District WIC division to educate and help improve the diets of infants, children, and pregnant, postpartum, and breastfeeding women who are eligible for the program through low income and nutrition - related risks. BACKGROUND AND FINDINGS: The special supplemental nutrition program for women, infants, and children (WIC) is a health and nutrition program that improves the diets of infants, children, and pregnant, postpartum, and breastfeeding women who are eligible for the program through low income and nutrition - related risks. This item approves additional funds increasing the award amount for the peer counselor and registered dietician. This contract with the Department of State Health Services provides services at the Corpus Christi - Nueces County Public Health District to over 5,000 low income women, infants, and children per month. The contract is from 10/01/2011 through 09/30/2012. This grant provides level funding. No matching funds required. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council approval required for acceptance of grant and appropriation of grant funds EMERGENCY / NON - EMERGENCY: Non - emergency DEPARTMENTAL CLEARANCES: Legal Finance - Federal Grant and Office of Management and Budget. FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $940,708 $940,708 Encumbered / Expended Amount This item $32,000 $32,000 BALANCE $972,708 $972,708 Fund(s): Comments: No match funding required. RECOMMENDATION: Staff recommends accepting the grant and appropriating the funds. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance authorizing the City Manager or his designee to execute all documents necessary to accept and appropriate a grant amendment in the amount of $32,000 from the Texas Department of State Health Services in the Health Grants Fund No. 1066, increasing the award amount for the peer counselor and registered dietician projects by $12,000 and $20,000 respectively. 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 all documents necessary to accept and appropriate a grant amendment of $32,000 from the Texas Department of State Health Services in the Health Grants Fund No. 1066, to increase the award amount for the peer counselor and registered dietician projects by $12,000 and $20,000 respectively. 0026_2_Ordinance - FY11 -12 20120712 WIC Grnt Amend - Peer Coun Reg Dietician CombOrd DWB That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor 0026_2_Ordinance - FY11 -12 20120712 WIC Grnt Amend - Peer Coun Reg Dietician CombOrd DWB DAVID L. LAKEY, M.D. COMMISSIONER June 18, 2012 TEXAS DEPARTMENT OF STATE HEALTH SERVICES Letter of Amendment 1100 West 49th Street • Austin, Texas 78756 P.O. Box 149347 • Austin, Texas 78714 -9347 1- 888 - 963 -7111 • www.dshs.state.tx.us TDD: 1-800- 735 -2989 Celina Hernandez, WIC Director LA #038, Corpus Christi - Nueces County Public Health District 1702 Horne Road Corpus Christi, TX 78416 Dear Ms. Hernandez: The Corpus Christi - Nueces County Public Health District WIC contract will be amended to reflect revisions as detailed in the table below. This letter constitutes a formal contract amendment. Project Project Contact Current Award Amount Amended Amount Increase Amended Amount (Decrease) Revised Project Total Peer Counselor Kristina Arrieta kristin_a.arrieta @dshs.state.tx,us (512) 341 -4593 $87,894.00 $12,000.00 $99,894.00 Registered Dietician Angela Gil angela.gil @dshs.state.tx.us $31,000.00 $20,000.00 $51,000.00 (512) 341 -4590 This project increase will be reflected in your contract "Not to Exceed" amount as shown below: Contract "Not to Exceed" Amount Current Contract Amount Amended Amount Increase Amended Amount (Decrease) Revised. Contract "Not to Exceed" Amount $940,708.00 $32,000.00 $972,708.00 Funds are awarded with the understanding that any procurements using these funds will be in compliance with the Uniform Grants Management Standards (UGMS), WIC policies and 7 CFR Part 3016. This letter is approval for funding only. It does not relieve the agency from seeking additional approvals as required by WIC Policy. 4n Equal Employment Opportunity Employer and Provider Celina Hernandez, WIC Director June 18, 2012 Page 2 In order for the State Agency to track these expenditures, please bill for each special project(s) listed above on a separate State of Texas Purchase Voucher (B-13). Label each voucher with the specific project name as well as allocations to Administrative (Admin), Nutrition Education (NE) and Breastfeeding (BF) costs. Vouchers without allocations listed will be applied toward Admin. For questions regarding funding decisions, please contact Benny Jasso, WIC Program, at (512) 341-4573, or benny.jasso@dshs.state.tx.us. For questions regarding purchase requests, please contact Alisin Genfan, Contract Development and Support Branch, at (512) 776-3156 or alisin.genfan@dshs.state.tx.us. Sincerely, ike Montgomery, Section Director Nutrition Services Section AG An Equal Employment Opportunity Employer and Provider AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21,2012 Action Item for the City Council Meeting of August 28, 2012 DATE: TO: June 21, 2012 Ronald L. Olson, City Manager FROM: Annette Rodriguez, Director of Public Health Annetter(c�cctexas. com 361- 826 -7205 Seafood & Aquatic Life Activities grant FY 12 -13 Approval of grant award and appropriation of funds CAPTION: Ordinance authorizing the City Manager or his designee to execute all documents necessary to accept and appropriate a grant of $22,500 from the Texas Department of State Health Services in the Health Grants Fund No. 1066 to provide laboratory services for the analysis of bay water samples. PURPOSE: The Seafood Grant allows the Health District Laboratory to test oyster beds in the Gulf to assure they are safe for human consumption. BACKGROUND AND FINDINGS: The Texas Department of State Health Services (DSHS) has awarded a grant in the amount of $22,500 to provide funding for laboratory services for the analysis of bay water samples beginning September 1, 2012 through August 31, 2013 for the purchase of supplies to support the analysis of marine water for the Seafood Safety Division of DSHS. ALTERNATIVES: Discontinue analysis of bay water samples OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council approval required for acceptance of grant and appropriation of grant funds EMERGENCY / NON - EMERGENCY: Non - emergency DEPARTMENTAL CLEARANCES: Legal Finance FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $22,500 $22,500 BALANCE $22,500 $22,500 Fund(s): Comments: No match funding required RECOMMENDATION: Staff recommends accepting the grant and appropriating the funds. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance authorizing the City Manager or his designee to execute all documents necessary to accept and appropriate a grant of $22,500 from the Texas Department of State Health Services in the Health Grants Fund No. 1066 to provide laboratory services for the analysis of bay water samples. 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 all documents necessary to accept and appropriate a grant of $22,500 from the Texas Department of State Health Services in the Health Grants Fund No. 1066 to provide laboratory services for the analysis of bay water samples. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor IIArea Agency on Aging OEFniE cals7zL BEND COASTAL BEND Aging & Disablllty resource enter M 1n.. of M Wad. and liumin-Sereke, COASTAL BEND COUNCIL OF GOVERNMENTS May 9, 2012 Ms. Elsa Munoz City of Corpus Christi — Parks & Recreation Dept. Senior Community Services Post Office Box 9277 Corpus Christi, Texas 78469 RE: Final Planned NFA (Notification of Funds Available) for FY2012 Dear Ms. Munoz: Enclosed, is your final planned allocation for FY12. These funds are provided under the Title III of the Older Americans Act of 1965, as amended. Please note your FY2011 — FY2013 Contract is for a three (3) year period ending on September 30, 2013. We have received all updated documents for FY12, including FY12 budget work papers, debarment certification, audit certification form, current insurance, current health inspection and updated emergency plans — all necessary documentation to maintain continuance said contract. If you have any questions about the enclosure, please call the office or send your inquiry by email. Sincerely, Betty Lamb, Director Area Agency on Aging of the Coastal Bend Coastal Bend Aging and Disability Resource Center enclosure S:Adm I npna l0 a clAdm in fAAANe n dor1FVt 21N FArtre nsm itta I Ltr2_5.9 -12 LOCATION; 2910 LEOPARD STREET; CORPUS CHIRSTI, TEXAS 78408 MAILING: POST OFFICE BOX 9909; CORPUS CHIRSTI, TEXAS 78469 www. a aacoa sta l ben d. o rg PHONE: (361) 883 -3935 TOLL FREE: 1- 800 - 817 -5743 FAX: (361) 883 -5749 The Area Agency on Aging is funded in part by the Texas Department of Aging and Disability Services NOTIFICATION OF FUNDS AVAILABLE AREA AGENCY ON AGING OF THE COASTAL BEND Physical: 2910 LEOPARD STREET; CORPUS CHRISTI, TEXAS 78408 Mailing: POST OFFICE BOX 9909; CORPUS CHRISTI, TEXAS 78469 SUBCONTRACTOR: DATE: May 9, 2012 Ms. Elsa Munoz City of Corpus Christi Senior Community Services Post Office Box 9277 Corpus Christi, Texas 78469 CONTRACT PERIOD: Oct, 1, 2011 — Sept. 30, 2012 CONTRACT NUMBERS: AA3- 1148 -4 AWARD ISSUANCE NUMBER: 2 This Notification of Funds Available is issued as an addendum to your contract with the Coastal Bend Council of Governments — Area Agency on Aging for the period October 1, 2011 through September 30, 2012. The funds awarded under this addendum are for the above period in the amount(s) shown below. It is understood and agreed by the Subcontractor that any payment thereunder, shall be for services provided in accordance with all requirements set forth in the referenced contract. The Subcontractor certifies upon request for any funds awarded under this addendum that the Subcontractor is not debarred, proposed for debarment, suspended, ineligible, or voluntarily excluded from participation in this contract by any federal department or agency or by the State of Texas. PROGRAM MEALS IIICIISGRINSIP HOME DELIVERED MEALS IIIC2ISGRINSIP SUPPORTIVE SERVICES IIIB TOTAL AWARD FYI2 Prior Contract Award $ 80,316 $ 75,722 $ 4,393 $160,431 J FYI2 Title III Award this Action (1) $207,526 $196,694 $ 12,167 $416,387 FYI2 NSIP Award this Action (2) $ 68,598 $ 76,732 $ - 0 - $145,330 FYI2 Cumulative Award $356,440 $349,148 $ 16,560 (1) This award represents the balance of planned allocation for FY12, based on funds awarded to CBCOG -AAA through March 23, 2012. John P. Buckner, Executive Director Coastal Bend Council of Governments cc. City of Corpus Christi, Grants Dept. Attn To: Ms. Emily Gonzales Post Office Box 9277 Corpus Christi, Texas 78469 lldld 0-01 ivel0ocumenlslAdminleellylNFA1Fy20124NFA21CalCC _5.9- 12.dec B� Page 1 of 2 Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $561,717 grant awarded by the Area Council on Aging of the Coastal Bend and appropriating in No. 1067 Parks and Recreation Grants Fund for the FY 2012 Senior Community Services, Elderly Nutrition Program. Be it ordained by the City Council of the City of Corpus Christi, Texas: Section 1. The City Manager, or his designee, is authorized to execute all documents necessary to accept a $561,717 grant awarded by the Area Council on Aging of the Coastal Bend for the final installment of FY 2012 Senior Community Services, Elderly Nutrition Program Section 2. That $561,717 grant from is appropriated into the No. 1067 Parks and Recreation Grants Fund for the FY 2012 Senior Community Services, Elderly Nutrition Program. Page 2of2 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED, this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor AGENDA MEMORANDUM Future Agenda Item for the City Council Meeting of August 21, 2012 Consent Agenda Item for the City Council Meeting of August 28, 2012 DATE: 7/30/2012 TO: Ronald L. Olson, City Manager FROM: Michael Morris, Director, Parks and Recreation Department 361- 826 -3494, MichaelMo(c�cctexas.com Retired Senior Volunteers Program (RSVP) grant award for FY12 -13 CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $45,434 grant awarded by the Corporation for National and Community Service for the Retired Senior Volunteer Program; appropriating the $45,434 grant in the No. 1067 Parks and Recreation Grants Fund; transferring $79,173 from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grant Fund as City matching funds for the Retired Senior Volunteer program and appropriating the $79,173 in the No. 1067 Parks and Recreation Grant Fund. PURPOSE: Appropriation of grant funding to allow for continuation of the Retired Senior Volunteers Program (RSVP). BACKGROUND AND FINDINGS: The City receives grant funding for the Retired Senior Volunteer Program (RSVP) through Federal and State and local grants and matching funds that must be appropriated each year. This award is year three of a three year contract with the corporation for National and Community Service in the amount of $45,434. The City of Corpus Christi provides $79,173 in matching funds for the continuation of the RSVP in Fiscal Year 2013. The RSVP program Retired and Senior Volunteer Program (RSVP) has proven to be exceptionally beneficial to both senior citizens and various public and private agencies in Corpus Christi. RSVP volunteers are individuals 55 years or older who utilize their talents and experience to serve the needs of the community. During a previous grant period (9/1/2010 - 8/31/2011) and fiscal year 2010 -2011, 574 enrolled volunteers contributed 62,000 hours through 44 different non - profit organizations like the Muscular Dystrophy Association, KEDT TV, South Texas Botanical Gardens, Corpus Christi Metro Ministries, and other community based organizations like Driscoll Children's Hospital, Corpus Christi Medical Center, USS Lexington, and AARP Chapters, to name a few. ALTERNATIVES: Reject the grant award and discontinue the RSVP Program. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: Council authorization is required to accept and appropriate Federal grant funds. EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: Legal, Finance, Budget FINANCIAL IMPACT: Operating Expense / Revenue Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $ 79,173 $ 79,173 Encumbered / Expended Amount This item $45,434 $ 45,434 BALANCE $124,607 $124,607 Fund(s): Parks and Recreation Grant Fund Comments: Click here to enter text. RECOMMENDATION: Staff recommends acceptance of the grant from the Corporation for National and community Services for the continuation of the Retired Senior Volunteer Program. LIST OF SUPPORTING DOCUMENTS: Notification of Funds Available Page 1 of 2 Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $45,434 grant awarded by the Corporation for National and Community Service for the Retired Senior Volunteer Program; appropriating the $45,434 grant in the No. 1067 Parks and Recreation Grants Fund; transferring $79,173 from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grant Fund as City matching funds for the Retired Senior Volunteer program and appropriating the $79,173 in the No. 1067 Parks and Recreation Grant Fund. Be it ordained by the City Council of the City of Corpus Christi, Texas: Section 1. The City Manager, or his designee, is authorized to execute all documents necessary to accept a $45,434 grant awarded by the Corporation for National and Community Service for the Retired Senior Volunteer Program. Section 2. That a $45,434 grant from the Corporation for National and Community Service is appropriated into the No. 1067 Parks and Recreation Grants Fund for the Retired Senior Volunteer Program. Section 3. That the City match of $79,173 is transferred from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grant Fund as City matching funds for the Retired Senior Volunteer Program, and appropriating the $79,173 in the No. 1067 Parks and Recreation Grant Fund. Page 2of2 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED, this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor Notice of Grant Award Retired and Senior Volunteer Program For Official Use Only Corporation for National and Community Service 601 Walnut Street, Suite 876 E Philadelphia, PA 19106 -3323 Grantee City of Corpus Christi EIN: 746000574 1201 Leopard PO Box 9277 Corpus Christi TX 78469 -9277 Award Information Agreement No.: 11SRWTX017 Amendment No.: 2 CFDA No.: 94.002 Award Description Project Period: Budget Period: 04/01/2011 - 06/30/2014 07/01/2012 - 06/30/2013 Authorize FY2012 funding Purpose The purpose of this award is to assist the grantee in carrying out a national service program as authorized by the Domestic Volunteer Service Act of 1973, as amended (42 U.S.C., Chapter 22). Funding Information Current Year Previously This Award/ Total Current Awarded Amendment Year This Year Total Obligated by CNCS Grantee's Unobligated Balance (Carryover) Total Available $0 $45,434 $45,434 $0 $0 $0 $0 $45,434 $45,434 Cumulative Funding for Project Period Total Awarded in Previous Years Total CNCS Funds Awarded to Date $56,793 $102,227 Funding Source and Amount 2012-- OPE1 -P74- COO - 61413 -4101 $45,434.00 Special Conditions Costs allowed under this grant are limited to those categories contained in signed application package dated 4/19/12. Grantee shall prepare a Project Progress Report (CNCS -1020 for Senior Corps) annually at the end of the 4th quarter of the budget period. The report shall be submitted to the Corporation Program Manager no later than 30 days after the end of the designated reporting period. The grantee shall be entitled to reimbursement for costs incurred on or after July 1, 2012 which if incurred before the signature date of this award, would have been reimbursed under the terms of this grant. Terms of Acceptance: By accepting funds under this grant, the Grantee agrees to comply with all terms and conditions of the grant that are on the Corporation's website at https: // egrants. cns. gov / termsandconditions /RSVPTandC_Revised20101001.pdf, all assurances and certifications made in the Grant application, and all applicable federal statutes, regulations and guidelines. The Grantee agrees to administer the funded Program in accordance with the approved Grant application and budget(s), supporting Page 1 For Official Use Only For Official Use Only Notice of Grant Award Retired and Senior Volunteer Program 601 Walnut Street, Suite 876 E Philadelphia, PA 19106 -3323 Grantee City of Corpus Christi EIN: 746000574 1201 Leopard PO Box 9277 Corpus Christi TX 78469 -9277 documents, and other representations made in support of the approved Grant application. Corporation for National and Community Service: 06/06/2012 Signature Date Lennette B. White Name (typed) Senior Grants Officer Title Lennette B. White, 215- 964 -6309 Grants Official LeRoy Minor, (512) 916 -5671 Program Official Page 2 For Official Use Only AGENDA MEMORANDUM Future Agenda Item for the City Council Meeting of August 21, 2012 Consent Agenda Item for the City Council Meeting of August 28, 2012 DATE: 7/30/2012 TO: Ronald L. Olson, City Manager FROM: Michael Morris, Director, Parks and Recreation Department MichaelMo(c�cctexas.com, 361- 826 -3494 Senior Companion Program (SCP) grant award for FY12 -13 CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $275,007 grant awarded by the Corporation for National and Community Service; appropriating the $275,007 grant in the No. 1067 Parks and Recreation Grants Fund; transferring $76,903 from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grants Fund as City matching funds for the Senior Companion Program, and appropriating the $76,903 in the No. 1067 Parks and Recreation Grants Fund. PURPOSE: Appropriation of grant funding to allow for the continuation of the Senior Companion Program (SCP) BACKGROUND AND FINDINGS: The City receives grant funding for the Senior Companion Program through Federal and State and local grants and matching funds that must be appropriated each year. This award is year three of a three year contract with the corporation for National and Community Service in the amount of $275,007. The City of Corpus Christi provides $76,903 in matching funds for the continuation of the Senior Companion Program in Fiscal Year 2013. The Senior Companion Program (SCP) assists low- income volunteers 55 years and over who are willing to serve as companions to homebound elderly and /or disabled persons 21 years of age or older. ALTERNATIVES: Reject the grant award and discontinue the Senior Companion Program. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: Council authorization is required to accept and appropriate Federal grant funds. EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: Legal, Finance, Budget FINANCIAL IMPACT: Operating Expense / Revenue Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $ 76,903 $ 76,903 Encumbered / Expended Amount This item $275,007 $275,007 BALANCE $351,910 $351,910 Fund(s): Parks and Recreation Grant Fund Comments: Grant match budgeted in General Fund for FY13. RECOMMENDATION: Staff recommends acceptance of the grant from the Corporation for National and community Services for the continuation of the Senior Companion Program. LIST OF SUPPORTING DOCUMENTS: Notification of Funds Available Page 1 of 2 Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a $275,007 grant awarded by the Corporation for National and Community Service; appropriating the $275,007 grant in the No. 1067 Parks and Recreation Grants Fund; transferring $76,903 from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grants Fund as City matching funds for the Senior Companion Program, and appropriating the $76,903 in the No. 1067 Parks and Recreation Grants Fund. Be it ordained by the City Council of the City of Corpus Christi, Texas: Section 1. The City Manager, or his designee, is authorized to execute all documents necessary to accept a $275,007 grant awarded by the Corporation for National and Community Service for the Senior Companion Program. Section 2. That a $275,007 grant from the Corporation for National and Community Service is appropriated into the No. 1067 Parks and Recreation Grants Fund for the Senior Companion Program. Section 3. That a City match of $76,903 is transferred from the No. 1020 General Fund to the No. 1067 Parks and Recreation Grants Fund as City matching funds for the Senior Companion Program; and appropriating the $76,903 in the No. 1067 Parks and Recreation Grants Fund. Page 2of2 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED, this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor Notice of Grant Award Senior Companion Program For Official Use Only Corporation for National and Community Service 601 Walnut Street, Suite 876 E Philadelphia, PA 19106 -3323 Grantee City of Corpus Christi E[N: 746000574 1201 Leopard PO Box 9277 Corpus Christi TX 78469 -9277 Award Information Agreement No.: Amendment No.: CFDA No.: 10SCWTX001 2 94.016 Award Description Project Period: Budget Period: 07/01/2010 - 06/30/2013 07/01/2012 - 06/30/2013 Authorize FY2012 funding Purpose The purpose of this award is to assist the grantee in carrying out a national service program as authorized by the Domestic Volunteer Service Act of 1973, as amended (42 U.S.C., Chapter 22). Funding Information Current Year Previously This Award! Total Current Awarded Amendment Year This Year Total Obligated by CNCS Grantee's Unobligated Balance (Carryover) Total Available $0 $275,007 $275,007 80 80 $0 $0 $275,007 $275,007 Cumulative Funding for Project Period Total Awarded in Previous Years 8550,014 Total CNCS Funds Awarded to Date 8825,021 Funding Source and Amount 2012 - -OPE 1 -P77- COO -61413 -4101 8275,007.00 Special Conditions Costs allowed under this grant are limited to those categories contained in signed application package dated 4/16/12. Grantee shall prepare a Project Progress Report (CNCS -1020 for Senior Corps) semiannually at the end of the 2nd and 4th quarters of the budget period. The report shall be submitted to the Corporation Program Manager no later than 30 days after the end of the designated reporting period. The grantee shall be entitled to reimbursement for costs incurred on or after July 1, 2012 which if incurred before the signature date of this award, would have been reimbursed under the terms of this grant. Terms of Acceptance: By accepting funds under this grant, the Grantee agrees to comply with all terms and conditions of the grant that are on the Corporation's website at https:ll egrants. cns. govl termsandconditionsl FGPSCPTandC _Revised20101001.pdf, all assurances and certifications made in the Grant application, and all applicable federal statutes, regulations and guidelines. The Page 1 For Official Use Only Notice of Grant Award Senior Companion Program Grantee For Official Use Only 601 Walnut Street, Suite 876 E Philadelphia, PA 19106 -3323 City of Corpus Christi EIN: 746000574 1201 Leopard PO Box 9277 Corpus Christi TX 78469 -9277 Grantee agrees to administer the funded Program in accordance with the approved Grant application and budget(s), supporting documents, and other representations made in support of the approved Grant application. Corporation for National and Community Service: Lennette B. White Name (typed) Senior Grants Officer Title Lennette B. White, 215- 964 -6309 Grants Official LeRoy Minor, (512) 916 -5671 Program Official Page 2 For Official Use Only RPT_BGT_424 June 7, 2012 10:58.AM City of Corpus Christi SCP City of Corpus Christi Application ID: 12SC139541 Budget Dates: 07/01/2010 - 06/30/2013 Total Amt CNCS Share Grantee Share Excess Amount Section I. Volunteer Support Expenses A. Project Personnel Expenses 75,171 60,137 14,584 450 B. Personnel Fringe Benefits 4,039 3,231 808 0 FICA 5,749 4,599 1,093 57 Health Insurance 9,021 7,217 1,714 90 Retirement 12,606 10,085 2,395 126 Life Insurance 0 0 0 0 Total $31,415 $25,132 $6,010 $273 C. Project Staff Travel Local Travel 1,500 1,500 0 0 Long Distance Travel 1,882 1,506 376 0 Total $3,382 $3,006 $376 $0 D. Equipment E. Supplies 504 500 4 0 F. Contractual and Consultant Services 1. Other Volunteer Support Costs 1,751 1,616 135 0 Criminal Background Check 0 0 0 0 Total $1,751 $1,616 $135 $0 J. Indirect Costs 25,288 0 0 25,288 Section I. Subtotal $137,511 $90,391 $21,109 $26,011 Section 11. Volunteer Expenses A. Stipends Corporation Funded Non - Corporation Funded Non - Stipended 149,418 19,369 Total $168,787 149,418 0 0 0 19,369 0 $149,418 $19,369 $0 B. Other Volunteer Costs Meals 19,900 9,440 10,460 0 Uniforms 425 340 85 0 Insurance 394 244 150 0 Recognition 5,616 2,598 3,018 0 Volunteer Travel 45,874 22,576 23,298 0 Physical Examinations 6,375 0 6,375 0 Section II. Subtotal Budget Totals Total $78,584 $35,198 $43,386 $0 $247,371 $184,616 $62,755 $0 5384,882 $275,007 $83,864 $26,011 Funding Percentages 76.6% Required Match n/a # of years Receiving CNCS Funds n/a 23.4% Form 424A Modified SF -424A (4/88 and 12/97) Page 1 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: July 31, 2012 TO: Ronald L. Olson, City Manager FROM: Michael Morris, Director MichaelMo@cctexas.com 361- 826 -3494 FY13 Community Youth Development Program (Bid Invitation No. BI- 0134 -11) CAPTION: Ordinance authorizing the City Manager or designee to execute a contract with the Texas Department of Family and Protective Services for funding for September 1, 2012 through August 31, 2014 in the total amount of $640,403; authorizing appropriation in the Grants Fund No. 1060 for Community Youth Development program contracts for the 78415 Zip Code area; and authorizing execution of subcontracts as follows: $85,000 to SERCO of Texas and $65,000 to Communities In Schools for subcontract period September 1, 2012 through August 31, 2013, and providing for one annual renewal period. PURPOSE: On 8/31/2010, M2010 -198, The City entered into a new contract term with the Texas Department of Family and Protective Services for youth services from September 1, 2010 — August 31, 2011 with the option to renew the contract on an annual basis for a total contract term not to exceed 54 month. For FY13, the State awarded the City $640,403 to continue youth services for the term of September 1, 2012 to August 31, 2014. The Parks and Recreation Department subcontracts with local providers for youth services. For FY2012, the CYD Collaborative Committee voted to contract with 4 subcontractors for youth services with the option to extend the contract for up to 48 months. For FY2013, youth services with the same 4 subcontractors are recommended which will provide for one annual renewal period for FY14. Due to the size of the contracts, only the CIS and SERCO agreements require Council approval. BACKGROUND AND FINDINGS: The Texas Department of Family and Protective Services (DFPS) is continuing to fund the Community Youth Development (CYD) Program in fifteen zip codes throughout the State. The City of Corpus Christi has been allocated $640,403 in program funds for two Fiscal Years 2013 and 2014, Contract Period September 1, 2012 through August 31, 2014, to be used in the 78415 Zip Code area. The City's Purchasing Department released a Request for Proposals (Bid Invitation No. BI- 0134-11) for providers to service the youth of 78415 with services including but not limited to Youth Leadership Development, Youth Advisory Committee, Mentoring and Recreation. A review committee was formed and reviewed 11 proposals of which 4 were recommended. ALTERNATIVES: Reject State funding and discontinue the CYD program. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: This award conforms to all City purchasing policies and procedures and State statues regulating procurement. EMERGENCY / NON - EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Parks and Recreation Purchasing Department Legal Department FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012 - 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $320,201.50 $320,201.50 $640,403.00 BALANCE $320,201.50 $320,201.50 $640,403.00 Fund(s): Grant Fund 1060 Comments: There is no City match requirement for this contract. RECOMMENDATION: Staff recommends approving the contract with the Texas Department of Family and Protective Services and extending the subcontracts with Communities In Schools and SERCO of Texas to continue providing services to qualifying youth in the 78415 ZIP code through FY2013. LIST OF SUPPORTING DOCUMENTS: Contract with State for CYD program Extension Agreement with Communities in Schools Extension Agreement with SERCO, Inc. Ordinance Ordinance authorizing the City Manager or designee to execute a contract with the Texas Department of Family and Protective Services for funding for September 1, 2012 through August 31, 2014 in the total amount of $640,403; authorizing appropriation in the Grants Fund No. 1060 for Community Youth Development program contracts for the 78415 Zip Code area; and authorizing execution of subcontracts as follows: $85,000 to SERCO of Texas and $65,000 to Communities In Schools for subcontract period September 1, 2012 through August 31, 2013, and providing for one annual renewal period. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the City Manager or his designee is authorized to execute a contract with the Texas Department of Family and Protective Services for funding for FY 2013 through FY 2014 in the amount of $640,403 for the Community Youth Development Program for the 78415 Zip Code area. SECTION 2. That the funds described in Section 1 are appropriated in the Grants Fund No. 1060 for Community Youth Development program for the 78415 Zip Code area. SECTION 3. That the City Manager or his designee is authorized to execute subcontracts for Community Youth Development program services, with contract periods September 1, 2012 through August 31, 2013 as follows: SERCO of Texas in the amount of $85,000 and Communities In Schools in the amount of $65,000, and providing for one annual renewal period. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following votes: Joe Adame David Loeb Chris Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr. Mark Scott Priscilla Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor Texas Dept of Family and Protective Services Contract Renewal Boilerplate for Client Services Contracts Service Type: Community Youth Development Form 9070 June 2012 Purchased Prevention and Early Intervention Services Contract Contractor Name: City of Corpus Christi Contract #: 23792861 Renewal #: 2 The Texas Department of Family and Protective Services, hereinafter referred to as the Department, and City of Corpus Christi, hereinafter referred to as the Contractor, entered into a contract effective September 1. 2012 for the purpose of providing Community Youth Development services with a payment type of Cost Reimbursement. This contract has been renewed 1 time(s) previously. The contract dated September 1, 2010 and all prior amendments and renewals are referred to herein as the "Original Contract." The procurement # 530 -11 -0006, which resulted in this contract, anticipated possible renewals and amendments of the contract, and no additional procurement process is necessary before entering into this renewal. The Department and the Contractor agree to amend the contract as follows: Name Change. Effective as of [Insert Date], the Contractor's name was changed from [insert old name] to [insert new name]. The Contractor represents and warrants to the Department that such name change was effected in accordance with applicable law and resulted in no material change in the ownership, management or business organization of the Contractor. 1. Effective Date of Contract. Section 1.2 of the Original Contract is amended to include: September 1, 2012, through August 31, 2014. II. Section 1.3 of the Original Contract is deleted in its entirety and the following provision substituted for same: Contract Amount. DFPS will pay the Contractor $640,403.00 ($320,201.50 FOR FY13 - September 1, 2012 through August 31, 2013; FY14 $320,201.50 September 1, 2013 through August 31, 2014) available funds for services rendered in accordance with the terms of this Contract upon receipt of a proper and verified statement and after deducting any known previous overpayment made by the Department. Section 1.9 of the Original Contract is deleted in its entirety and the following provision substituted for same: Testimony in Proceedings. Contractor will require its employees to testify in judicial and administrative proceedings at the request of DFPS. To the extent possible, Contractor will also assist the Department in locating past employees, agents, volunteers, consultants, or subcontractors when DFPS requires past employees, agents, volunteers, consultants, or subcontractors to appear and testify in accordance with this subsection. IV. Section 1.38.2 of the Original Contract is deleted in its entirety and the following provision substituted for same: Immediate Suspension or Termination. The Department will immediately suspend or revoke this Contract if the Contractor is found liable for, or has a contract, license, certificate, or permit of any kind revoked for, Medicaid fraud. DFPS will also immediately suspend or revoke this Contract if a necessary license, certificate, or permit named in this Contract expires or is revoked Page 1. of 4 Texas Dept of Family and Protective Services Contract Renewal Boilerplate for Client Services Contracts by any applicable licensing authority for any reason. V. Section 1.39.2 of the Original Contract is deleted in its entirety and the following provision substituted for same: Form 9070 June 2012 1.39.2. Suspension, Ineligibility, and Voluntary Exclusion. Executive Orders 12549, 13224 and 12689 require DFPS to screen each covered Contractor to determine whether each has a right to obtain a contract in accordance with federal regulations on debarment, suspension, ineligibility, and voluntary exclusion. Contractor certifies the following: 1.39.2.1.That Contractor is, to the best of its knowledge and belief, not on the specially designated nationals list or debarred, suspended, declared ineligible, or voluntarily excluded from participation in this solicitation or any resulting contract. 1.39.2.2.That Contractor will not knowingly enter into any subcontract with a person who is on the specially designated nationals list or debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by DFPS or the U.S. Department of Health and Human Services or U.S. Treasury Department, as applicable. 1.39.2.3.That Contractor will include this section regarding debarment, suspension, ineligibility, and voluntary exclusion, and the specially designated nationals list without modification in any subcontracts or solicitations for subcontracts. VI. Section 1, GENERAL REQUIREMENTS of the Original Contract is amended by adding the following language: 1.42 Information Security Requirements. Contractor must comply with the following: 1.42.1. The DFPS IT Security Policy located at: httb: / /www.dfos. state .tx.us /documents /PCS /Contractor Information Securitv.p df 1.42.2. Health and Human Services Enterprise Information Security Standards and Guidelines 1.42.3. Title 1, Texas Administrative Code, Sections 202.1 and 202.3 -.28 1.42.4. Texas Human Resources Code, Section 40.005 1.42.5. Texas Family Code, Section 161.006(a) -(b) 1.42.6. Texas Family Code, Section 162.018 1.42.7. Texas Family Code, Subchapter C, Sections 261.201 -.203 1.42.8. Texas Family Code, Section 264.408 1.42.9. Texas Family Code, Section 264.511 1.42.10. Texas Health and Safety Code, Section 85.115 1.42.11. Title 40, Texas Administrative Code, Subchapter B, Sections 700.201 -,209 1.42.12. The Federal Information Security Management Act of 2002 (FISMA); 1.42.13. Publication 1075 - Tax Information Security Guidelines for Federal, State and Local Agencies; 1.42.14. NIST Special Publication 800 -53 Revision 3 - Recommended Security Controls for Federal Information Systems and Organizations; and 1.42.15. NIST Special Publication 800 -47 - Security Guide for Interconnecting Information Technology Systems. 1.42.16. In addition to the requirements expressly stated in this Section, Contractor must comply with any other State or Federal law, regulation, or administrative rule relating to the specific DFPS program area that Contractor supports. 1.42.17. Upon reasonable notice, Contractor must provide, and cause its subcontractors and agents to provide, DFPS or its designee, prompt, reasonable, Page 2 of 4 Texas Dept of Family and Protective Services Contract Renewal Boilerplate for Client Services Contracts and adequate access to any information security records, books, documents, and papers that are directly pertinent to the performance of the Contract including, but not limited to: 1.42.17.1.Contractor information security policies; 1.42.17.2.Contractor information security procedures; 1.42.17.3. Contractor information security standards; 1.42.17.4.Contractor information security guidelines; 1.42.17.5.Contractor security plan in compliance with NIST Special Publication 800 -53 Revision 3; 1.42.17.6. Contractor security violation reports; 1.42.17.7.Contractor employee security acknowledgement agreements; and 1.42.17.8.Lists of Contractor's employees, subcontractors, and agents with authorized access to DFPS confidential information. 1.42.18. Items 1.42.17.1 through 1.42.17.8 above are subject to DFPS' review and approval. Neither DFPS' review or approval, nor its failure to review or approve, will relieve, waive, or satisfy any of Contractor's obligations under this Agreement. 1.42.19. Contractor will provide, and will cause its subcontractors and agents to provide, to DFPS, upon reasonable notice, written certifications of compliance with controls and provisions relating to information security, including but not limited, those related to confidential data transfers and the handling and disposal of Personally Identifiable Information (PII). Acceptable forms of written compliance may be, but are not limited to: 1.42.19.1.Statement on Auditing Standards No.70, Service Organizations (SAS -70) Report; 1.42.19.2.General Security Controls Audit; 1.42.19.3.Application Controls Audit; 1.42.19.4.Vulnerability Assessment; and 1.42.19.5.Network/Systems Penetration Test. Form 9070 June 2012 VII. Section 1, GENERAL REQUIREMENTS of the Original Contract is amended by adding the following language: 1.43. Survivability. All obligations and duties of the Contractor not fully performed as of the expiration or termination of this Contract will survive the expiration or termination of the Contract. VIII. Incorporation by Reference. Contractor represents, and requests the Department to rely on these representations: A. If any material facts have changed, the Contractor has attached new and current documents as indicated by the Department. 1. DFPS Procurement #: 530 -11 -0006 2. Form 2031, Signature Authority Designation 3. Form 4732, Request for Determination of Ability to Contract 4. Form 2030, Budget for Purchase of Service with Narrative, if applicable 5. Form 9007 Internal Control Structure Questionnaire (ICSQ) 6. PEI Supplement Attachment I 7. 2282CR Cost Reimbursement Supplement Attachment II 8. Performance Measures Attachment III 9. Plan of Operation 10. Policy and Procedures Manual Page 3 of 4 Texas Dept of Family and Protective Services 11. Policy Clarifications Contract Renewal Boilerplate for Client Services Contracts Form 9070 June 2012 B. Upon request by the Department, the Contractor will prepare and execute new documents from the forms listed above. Budget. The Budget for Purchase of Service Contracts (Form 2030) and Budget Narrative included in the Original Contract are hereby deleted and the Form 2030 and Budget Narrative attached hereto are substituted for same. The Department shall reimburse the Contractor the reasonable, allowable and allocable costs. X. Service Provisions. Services Provisions remain the same as stated in the Original Contract. All other terms and conditions of the Original Contract not in conflict with this renewal are continued in full force and effect. By signing this renewal, the Contractor represents and warrants to the Department that Contractor still complies with all previously submitted Certiftcations made when entering into this agreement. This renewal # 2 to contract # 23792881 is effective September 1, 2012, through August 31, 2014. . Texas Department of Family Contractor: City of Corpus Christi and Protective Services Signature Signature Printed Name: AudnovD*oNnqm Printed Name: Michael Morris Title: Assistant Commissioner for Child Title: Director of Parks and Recreation Protective Services Date Date Page 4 of 4 TEXAS DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES COMMISSIONER Howard G. Baldwin, Jr. July 30, 2012 Angel Escobar City Manager City of Corpus Christi 606 N. Carancahua, Suite 105 Corpus Christi, TX 78401 RE: Contract Renewal Notice of Award — Fiscal Year 2013 Contract #23792861, Community Youth Development Program Dear Mr. Escobar: Contract renewals for Division of Prevention and Early Intervention (PEI) programs must be finalized by August 31, 2012. For FY2013, the target for the average number of youths to be served monthly will be 300 and annual number of unduplicated youth to be served will be 1376, as reflected in your current Plan of Operation. Please review all documents and then print out 3 copies of each of the following: contract (9070) with attachments, approved 2030, approved narrative and the plan of operations. All necessary documents need to be signed in blue ink. If a board, judge, or other governing body must approve your renewal packet, please ensure that you have planned for this process within the available time and advise your contract manager of key dates. All renewal information is due no later than August 22, 2012. Please send renewal documents to my attention at the following address: DFPS /PEI (if sending by regular mail) P. O. Box 149030, Mail Code Y -987 Austin, TX 78714 -9030 OR (if sending by courier) DFPS /PEI 2401 Ridgepoint Drive, M/C Y987 Austin, TX 78754 Your partnership in expediting the renewal process is greatly appreciated. If you do not intend to renew your contract with DFPS, please contact me immediately so that we may initiate contract closure. 2401 RIDGEPOINT DR. P.O. Box 149030, MC Y -987 • AUSTIN, TEXAS 78714 -9030 ♦ (512) 929 -6439 Mr. Escobar July 30, 2011 Page 2 of 2 Please contact me at 512 - 929 -6439 if you have any questions regarding this letter or the enclosed documents. Sincerely, Fe lifiCO L`o eZ, Jr. i STAR Cont ct Man a er Prevention and E,ariy Intervention bocuments sent by e-mail: Contract form 9070 2030 Budget and Budget Narrative Plan of Operations Addendum 2 Attachment 1 PEI Supplement Attachment II form 2282CR Attachment III Performance Measures Texas Department of Family and Protective Services Budget for Purchase of Service Contracts FY 2013 Form 2030 May 20D9 Summary Contractor City of Corpus Christi Contract No. Contract Period 23792861 2 September I, 2012 through August 31, Cost Category A B ' C Grand Total -:Reimbursable Other (IA) Personnel -Salaries $67,682.04 $67,682.04 $0.00 (IB) Personnel - Fringe Benefits $23,250.16 $23,250.16 $0.00 Subtotal $90,932.20 $90,932.20 $0.00 (2) Travel $1,718.40 $1,718.40 $0.00 (3) Materials, Supplies and CA $1,762.50 $1,762.50 $0.00 (4) Equipment (Rent/Lease/Purchase) $0.00 $0.00 $0.00 Subtotal $3,480.90 $3,480.90 $0.00 (5) Other Costs (list below) $225,788.40 $225,788 40 $0.00 Subtotal $225,788.40 $225,788,40 $0.00 Total Direct Costs $320,201.50 $320,201„50 90.00 Indirect Cost Rate (if applicable): 0.00% Grand Total $320,201.50 $320,201.50 $0.00 % of Total 100.0% 100.0% 0.0% Service Dollar % Total FA Service $0.00 $0.00 $0.00 0.0% Total Subcontractor Service $220,000.00 $220,000.00 80.00 100.0% Total Service Dollars $220,000.00 $220,000.00 $0.00 100.0% Total FA Non-Service/Operational $100,201.50 $100,201.50 $0.00 Grand Total $320,201.50 $320,201.50 90.00 Total estimated number of participants to be served: 1376 Certified by: Name: Title: Date: Michael Morris Director of Parks & Recreation Page I Texas Department of Family and Protective Services Budget for Purchase of Service Contracts FY 2012 Form 2030 May 2009 (IA) Personnel - Salaries Contractor Contract No. Contract Period City of Corpus Christi 23792861 September 1, 2012 through August 31, 201 Position or Title AR FtOuff Avg. Monthly Salary C a %Time (on conterr) B OSIxeihs of Service E Total AvO.C.cD F Reimbursable G Other $0.00 90.00 5000 $0.00 90.00 00.00 $0.00 $000 $0 00 $000 $0.00 90.00 $0.00 $0.00 $0.00 50 00 50.00 $000 $0.00 90.00 Total FA Service 90.00 .90.00 90.00 CYD Program Manager I $3,29167 100.00% 12 $39,500.04 539,500.04 Accountant I 93,67500 14.00% 12 $6,174 OD $6,174.00 CYD Adnunisrative Assistant 1 91,934.00 10000% 12 822,008.00 $22,008.00 $0.00 $0.00 $0.00 90.00 50.00 $0 00 SO 00 $0.00 $0.00 S0 00 SO 00 S0.00 5000 00.00 Total FA Non-Service/Operational 567,682.04 567,082.04 S0.00 50.00 50.00 S0 00 S0 00 .1.or montlonno purposes tnnesbeets at payroll data must be kept on flea *'Costs not allowable if already bemgpaid by other rourcos Total Salaries 667,682.04 $67,682.04 80.00 Page 2 Texas Department of Family and Protective Services Budget for Purchase of Service Contracts FY 2012 Form 2030 May 2009 (18) Personnel - Fringe Benefits Contractor City of Corpus Christi ..._ _... Contract No. 23792861 Contract Period September 1, 2012 through August 31, 2 Type of Fringe Benefits A Total B 1 Reimbursable C Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $000 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total FA Service $0.00 $0.00 $0.00 'I'MRS (Retirement) 14.24%x $5,125.67 x 4 months $2,919.60 $2,919.60 TMRS (Retirement) 14.84% x $5,125.67 x 8 months $6,085.20 $6,085.20 FICA (7.65%x$61,508.04) $4,705.36 $4,705.36 Workers Compensation (PM & Admin Asst) ($234 x 26) $6,084.00 $6,084.00 Health Insurance (PM & Admin Asst) ($144 x 12 x 2) $3,456.00 $3,456.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total FA Non-Service/Operational 523,200.16 $23,250.16 50.00 $0.00 $0.00 $0.00 $0.00 $0.00 'Total Fringe Benefits $23,250.16 $23,250.16 $0.00 *For monitoring purposes payroll data must be kept on file. **Costs not allowable if already being paid by other sources Page 3 Texas Department of Family and Protective Services Budget for Purchase of Service Contracts FY 2012 Form 2030 May 2009 (2) Travel Contractor City of Corpus Christi Contract No. Contract Period 23792861 September 1, 2012 through August 31, 2 Type of Travel Expense (mileagerfood/lodging etc.) A Total B Reimbursable C Omer $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total FA Service $0.00 $0.00 $0.00 Local Mileage (.40) $300.00 $300.00 DPPS Provider Meeting & PIP Conference $0.00 Hotel $832.00 $832.00 Hotel Taxes $124.80 $124.80 Per Diem $288.00 $288.00 Mileage for Conference $173.60 $173.60 $0.00 00.00 00.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.02 Total FA Non-Service/Operational $1,718.40 $1,718.40 $0.00 $0.00 $0.00 Total Travel $1,718.40 $1,718.40 $0.00 *for monitoring purposes receipts and other detailed records must he kepi on file. **Costs not allowable if already being paid by other sources. Page 4 Texas Department of Family and Protective Services Budget for Purchase of Service Contracts FY 2012 Form 2030 May 2009 (3) Materials, Supplies and Controlled Assets Contractor City of Corpus Christi Contract Ab. Contract Period 23792861 September 1, 2012 through August 31, 2 Materials, Supplies and Controlled Assets (description and basis of cost) A Total .B Relmbarsnble -.0 Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total FA Service $0.00 $0.00 $0.00 Routine Office Supplies $000.00 $600 00 Commwrity Awareness Supplies $562.50 $562.50 Food/Snacks (youth) $600.00 $600.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total FA Non-Service/Operational $1,762.50 $1,762.50 $0.00 $0.00 $0.00 $0.00 $1,762.50 51,762.50 $0.00 *For monitoring purposes receipts and other detailed records must be kept on file. **Costs not allowable if already being paid by othersources Page 5 Texas Department of Family and Protective Services Budget for Purchase of Service Contracts FY 2012 Form 2030 May 2009 (4) Equipment Contractor City of Corpus Christi _. _. _.. Contract No. Contract Period 23792861 September 1, 2012 through August 31, 201 Equipment (description and basis of cost) .1 Total B Reimbursable '.0 Other Method Used (rent/lease/buy) $0 00 $000 $0.00 $0.00 $0 00 $0.00 $0.00 $0.00 Total FA Service $0.00 50.00 $0.00 $0.00 None $0.00 $0.00 $0.00 $0.00 $0 00 $0.00 $0.00 $0.00 $0.00 80.00 Total FA Non-Service/Operational $0.00 $0.00 80.00 $0.00 $000 $0.00 $0.00 Total Equipment $0.00 $0.00 $0.00 $0.00 *For monitoring purposes receipts and other detailed records must be kept on file. **All equipment must be tagged and numbered "Costs not allowable ifalready being paid by other sources __- --- Page 6 Texas Department of Family and Protective Services Budget for Purchase of Service Contracts FY 2012 Form 2030 May 2009 ( 5) Other Costs J Contractor Contract No. Contract Period September 1, 2012 t trough August 31, 2 Other Costs (description and basis of cost) A Total B Reimbursable C Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total FA Service $0.00 $0.00 50.00 Postage/Deliver $158.40 $158.40 Copying / Printing Charges $290.00 $290.00 Recruitment Costs $300.00 $300.00 Leadership Recognition Event $650.00 $650.00 Community Needs Assessment $300.00 $300.00 Registration Fees (TNOYS membership & PIP Conference) $250.00 $250.00 Lease / Rental Expenses $3,840.00 $3,840.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total FA Non-Service/Operational $5,788.40 $5,788.40 50.00 Youth Odyssey $28,000.00 $28,000.00 SERCO of Texas $85,000.00 $85,000.00 Boys & Girls Club $42,000.00 $42,000.00 Communities In Schools $65,000.00 $65,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Subcontracts $220,000.00 $220,000.0D $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Other 5225,788.40 $225,788.40 50.00 *For monitoring purposes receipts and other detailed records must be kept on file. **All equipment must he tagged and numbered **Costs not allowable if already being paid by other sources. Page 7 City ofCorpus Christi FY13 Budget Narrative 78415 Community Youth Development Program BUDGET NARRATIVE The City of Corpus Christi (City) will serve as the fiscal agent for the Community Youth Development (CYD) Program. The City will provide fiscal services necessary to ensure State funds are properly utilized to deliver the services reflected in this proposal. The City will also ensure subcontracts for the delivery of services is executed by all service delivery agencies. During the program period, the City will monitor each subcontractor to ensure services are being delivered in accordance with State guidelines and as specified in the subcontract for services. Personnel — Salaries $67,682.04 Positions are salary-based with the exception of the Administrative Assistant which is paid on an hourly-base. The Program Manager and the Administrative Assistant are charged for 100% of their time, the Accountant is charged for time spent working on the CYD program. Timesheets are prepared each month by the persons in the three positions and their hours worked on CYD business is verified by the Program Manager. The Fiscal Agent is reimbursed by DFPS for only those hours worked on CYD. FA Non-Service 0 • perationat Salaries: $67 682 0 4 • CYD Program Manager — Salary $39,500.04 A full-time (40 hours a week) CYD position responsible for preparing correspondence, plans, contracts, agreements, budgets, and monitoring reports. Monitors subcontractor and fiscal agent budgets and expenditures and ensures contract compliance. Conducts annual subcontractor formal monitoring and quarterly site visits. Collects and analyzes data to monitor contract compliance. Works with subcontractors on resolving problems and answering questions. Oversees the management of database on CYD participants. Reviews monthly subcontractor billings and reports for payment processing. Performs Community Outreach by creating collaborative relationships. Maintains inventory of all capital purchases by subcontractors and maintains an inventory list. In addition, this position also assists in CYD data entry as needed. 40 hours per week spent on CYD. $3,291.67 mo. x 100% x 12 mos. = $39,500.04 Accountant — Salary $6,174.00 Full-time (40 hours a week) position responsible for processing payment requests to vendors and subcontractors. Records and reports expenditures and processes time reimbursement for Fiscal Agent. 7-8 hours per week spent on CYD. $3,675 mo. x 14% x 12 mos. = $ 6,174.00 Administrative Assistant — Salary $22,008.00 A full-time (40 hours a week) CYD position reimbursed at an hourly wage of $10.58, responsible for all data entry into the PEIS data system and assisting the CYD Program Manager. Also responsible for maintaining files, assisting with community events and some correspondence with providers (40 hours per week spent on CYD). $1,834 x 100% x 12 mos = $ 22,008.00 City ofCorpus Christi FY13 Budget Narrative Personnel — Fringe Benefits $23,250.16 L'E FA Non-Service Operational Fringe Benefits: $23,250.16 TMRS (retirement) Percentage on the (2) full-time salaries (CYD Program Manager ($39,500.04 and CYD Administrative Assistant($22,008.00) — For 4 months (Sept — Dec) - 14.24% x $5,125.67 x 4 months = $2,919.60 or approx $729.90 per month For 8 months (Jan-Aug) - 14.84% x $5,125.67 x 8 months = $6,085.20 or approx $760.65 per month. FICA Percentage of tax on the (2) full-time salaries (CYD Program Manager ($39,500.04 and CYD Administrative Assistant ($22,008.00) — 7.65% x $61,508.04 = $4,705.36 or approx $392.11 per month. Worker's Compensation (Program anager and Administrative Assistant) $2341pay period x 26 pay periods x = $6,084.00 Health Insurance (Program Manager and Administrative Assistant) $144/mo. x 12 mos. x 2 = $3,456.00 Fringe Benefits will be charged at 100% to the State for the two full-time positions. Fringe Benefits for the Accountant are being paid by the City of Corpus Christi and not being charged to the State. Personnel — Travel $1,718.40 FA Non-Service Operational Travel: $1 I 71 8 • 40 Local mileage — Local travel by CYD Program Manager and/or Administrative Assistant at a rate of $0.40/mile, estimated miles for year to travel to subcontractor sites to coordinate and monitor programs. Basis is derived from historical usage from previous years. In the event there is a mileage rate increase, we will reimburse at a level no higher than the standard federal level. Although the State rate is .55, we will only bill at the level that the agency utilizes which is currently .44 although there may be an increase through the year. Approximately 62.5 miles/mo. x 12 mos. x $0.40/mile = $300.00 Out-of-town travel: Funds are allocated to cover expenses for the DFPS Provider Meeting and the Total Trip - $1,418.40, City of Corpus Christi FY13 Budget Narrative Partners In Prevention Conference held in Round Rock, Texas for the CYD Program Manager and the Administrative Assistant.. We will request for reimbursement at this rate, but in the event of an increase, we will request at a level no higher than the standard DFPS rate. Trip 1 — DFPS Provider Meeting & PIP Conference Hotel: 2 staff (CYD Program Manager and Administrative Assistant) x 3 nights x $138.67.00 night = $832.00 $104. X Hotel Tax (15%) = $15.60: 2 staff x 3 nights x $15.60 = $124.80 Per Diem: 2 staff x 4 days x $36/day = $288.00 Transportation (car): 1 vehicle x 434/miles (Austin roundtrip) x .40= $173.60 Materials and Supplies $1,762.50 FA Non-Service Operational Material and Supplies: $1,762.50 Routine office supplies — $600.00 Office supplies to be utilized by the CYD Program Manager and Administrative Assistant in overseeing all projects under the Community Youth Development Program. Office supplies including but not limited to paper, pens, folders, envelopes, items for CYD meetings, subcontractor trainings, pre-bid conferences, publications, and correspondence. Approximately $50 per mo. x 12 mos. = $600.00. This figure is based on historical usage from previous years. Community Awareness Supplies — $562.50 Community Awareness for the CYD program will be done throughout the 78415 area including attendance at community events and school functions. At these events, we will be distributing small items to spread the CYD message and to recruit youth for the CYD programs. Items to be purchased will include the CYD logo and phone number and will include such items not limited to pens, pencils, and notebooks to be distributed to participants at events. This also includes supplies to conduct community meetings and attend school events at the three high schools and three middle schools. These items include but are not limited to decorations, banners, activity supplies etc. for community events. This figure is based on historical usage from previous years. Community Awareness Items — 750 items @ $.75 ea = $562.50 Food/snacks (for Youth) — $600.00 Costs associated with the purchase of food, drinks and/or snacks for youth that attend the CYD Collaborative Committee meetings. Youth attendance to each monthly meeting averages about 7-10 youth. We invite a number of YAC students to attend the meetings and get a feel for the Collaborative Committee and to voice their opinion on programs. In addition, the CYD Program Manager with assistance from YAC youth, will visit each of the 78415 schools to raise awareness of the program by participating in the school's festivals. Before the end of school, a Leadership Recognition event will be held for those youth that participated in community events, community City of Corpus Christi FY13 Budget Narrative service. The event is designed to give the youth some recognition for their leadership skills. Food will be provided at the event for the CYD youth. All food costs will be in accordance with DFPS guidelines. Basis is from historical data. Food for CYD Youth at CCC Meetings & Leadership Recognition Luncheon 4 meetings at $25 each (approx. 15 kids each) - $100.00 Leadership Recognition catering + labor (other expenses listed on page 5) - (50+ youth in attendance) $500.00 $600.00 Rental, Lease or Purchase of Equipment - $0.00 None FA Non-Service Rental, Lease or Purchase of Equipment: $0.00 None Other Costs $225,788.40 L " FA Non-Service Operational Other Costs: $5,788.40 Postage, delivery charges — $158.40 Costs associated with mailings and deliveries of CYD documents. Fiscal agent is charged per piece, not cost allocation. The estimate of $0.44 per piece is an average cost which includes processing the outgoing mail plus postage. 30 pieces x 12 x $0.44/piece = $158.40. Copying/printing charges — $290.00 Cost for copying documents for CYD meetings, copies to subcontractors and DFPS. Based on prior year's volumes. Fiscal agent is charged per copy at .05 each, not by cost allocation. The estimate of $0.05 per copy includes the City of Corpus Christi lease agreement and the maintenance contract. Copies made - 150 copies/mo. x $0.05 x 12 mos. = $90. Specialty outside print jobs (i.e. display boards, banners, postcards and/or posters for distribution) estimated at $50 x 4 months = $200.00. Recruitment Costs — $300.00 Costs associated with recruiting for the CYD program throughout the year including extra pushes for summer programs. This includes visiting school events that are held in the fall at the 78415 schools and end of year events. This will give the CYD Program Manager the opportunity to visit with each school, meet teachers and parents at the schools and engage the youth through activities while learning about CYD programs. This will also give us the opportunity to showcase programs, perform City of Corpus Christi FY13 Budget Narrative surveys, increase recruitment and also promote awareness of the CCC. These events will involve the CYD Collaborative Committee, providers and YAC. In order to increase awareness at the events, for larger events we will create more of a presence with larger booths and activities for YAC youth to interact with while discussing the program. Costs associated with these events include but are not limited to t -shirts for working youth, staff and volunteers, booth costs, decorations, and supplies. Booth Costs & Supplies 6 events @ $50 $ 300.00 Total Cost $ 300.00 Leadership Recognition Event - $650.00 Towards the end of the year, we will collaborate with providers to provide a Leadership Recognition event for CYD Youth. This event will invite CYD youth to receive recognition for the jobs /community service that they provided throughout the year while being recognized within their community. Costs will include but not limited to a Speaker, projector and sound system including microphone rental, award certificates and recognition token, and decorations. Cost is based on historical data. Recognition Event Site Rental $ 300.00 Presentation Services (system rental & decor) $ 200.00 Certificates $ 150.00 Total cost for Leadership Recognition Event $ 650.00 Community Needs Assessment -- $300.00 The Community Needs Assessment will require special meetings with the YAC and CCC. A youth survey will be distributed to YAC peers in the 78415 zip code. Incentive to complete the form for the youth will include a small item either a CYD wristband, CYD ID tag or similar item in cost. In the past, these items have helped to bring in more surveys and have offered more incentive to the YAC students to approach their friends and peers. Also, in order to bring about competition amongst the youth, the CYD youth who represent the school with the most surveys returned receive a prize, such as an educational field trip. In addition, the CYD Program Manager will enlist assistance from the Dr. Philip W. Rhoades at Texas A &M University- Corpus Christi for compilation of data for a more comprehensive Community Needs Assessment, approx cost $230 based on historical costs. Basis on cost derives from historical data from previous years and does not have a formula readily available. Survey incentives 400 x $.50 - $ 200.00 Recognition event for school - $ 100.00 $ 300.00 Registration Fee — $250.00 Registration Fee for 2 staff for PIP registration. $125 /staff x 2 staff = $250 Lease / Rental Expenses - $3,840.00 The CYD Program Manager's Office is now located at a City of Corpus Christi's, "Parks and Recreation" rental office area located at 606 Carancahua, Ste 105 Corpus Christi, Texas. The space that utilized for CYD business is 320 square footage (CYD Program Manager — 120 sq ft, CYD Administrative Assistant — 110 sq. ft, CYD Storage — 90 sq ft). The monthly lease amount paid to Wilson Plaza Associates L.P. is $4,802. The monthly rental fee paid to the City of Corpus Christi for housing the CYD office at 606 N. Carancahua, Ste 105 is $320. This amount includes utilities and City of Corpus Christi FY 13 Budget Narrative electricity. Lease / Rental Expense Breakdown: CYD Office Square Footage: 320 Total Square Footage for the building: 4,802 Monthly Rental for the building: $4,802.00 4,802' / $4,802 = $1.00 per square foot 320' x $1.00 = $320 per month x 12 months = $3,840 'Total Subcontractor Services/Other Costs: $220,000 Youth Odyssey $28,000 SERCO of Texas $85,000 Communities In Schools $65,000 Boys & Girls Club of CC $42,000 Total Subcontract Service Dollars: $ 220,000 TOTAL AMOUNT OF CYD CONTRACT: $320,201.50 Community Youth Development Program FY 2013 Plan of Operation 1- SUMMARY PAGE Contractor Name: City of Corpus Christi Contract Number: 23792861 ;.`�a4 W 'y ,�....F , , . � !'10 ,. ,. i �f :'.8: - it a h TI _ -i ��' rr47 a �,�.7t. - +i >: �`M�rima 130 .Co #act infgrina�flolt' . � � , . ; , ar,�.. .r .. , �3, Name: TBD Youth Advisory Committee (only one. service provider per ZIP code) Title: E -mail: Phone Number: Celina Pulcher CYD Program Manager Celinat cctexes.com 361 - 826.4028 � r , . 1, . % . Secondary, Profit'arri'0on aQtIn to atlo OI' :. ...1'a.6'1 ,. ' ` .. Name: Title: E -mail: Phone Number: Diana Naranjo JAC / CYD Superintendent DianaN@cctexas.com 361- 826 -4005 1. Will the fiscal agent provide direct services? Ell Yes ® No 2. Identify the service provider offering the following required services: Required Service: Names of Service Providers Mentoring TBD Youth Leadership Development TBD Youth Advisory Committee (only one. service provider per ZIP code) TBD Detailed Changes to the. Plan of Operation Where no changes are identified, the contractor is required to provide services as identified in the FY 12 Plan of Operation. Formal Compliance Monitoring `. ® I certify that the information from Plan of Operation for FYI 2 is the same. ❑ The changes being made are detailed below. 1. Describe how the fiscal agent will ensure that the service providers meet all the administrative requirements, such as internal controls, personnel requirements, background checks, record keeping, 2 -1 -1 listings, and . reporting of suspected child abuse and neglect as described in the RFP. 2. Describe how the fiscal agent will ensure that the service providers meet all the fiscal requirements, such as billing to the month incurred, billing only items that are reasonable, necessary, allowable, and allocable, billing only items in the budget, billing costs reasonable for the services delivered, and having proper supporting documentation for costs billed, including personnel time, as described in the RFP. 3. Describe how the fiscal agent will ensure that the service providers meet all the programmatic requirements, such as performance measures, delivering services consistent with their plan of operation and local RFP requirements including program reports, eligibility requirements, age restrictions, and services provided (typeandintensityj, .as describedin the RF-P. Comm uniti' and Youth Collaboration'and.Input ® 1 certify that the information from Plan of Operation for FY12 is the same. ❑ The changes being made are detailed below. 1. Is the CCC a stand -alone group or part of a larger collaboration? Stand - alone group CYO Plan of Operation Page 1 of 5 Fiscal Year 2013 (September 1, 2012 - August 31, 2013) ❑ Part of a larger collaboration (Name of the larger collaboration: 2. Describe how the CCC will: a. assist with the strengths and needs assessment, b. assist with integration of CYD into the community, c. encourage collaboration among area agencies to provide an integrated means of identifying barriers to service delivery, finding solutions to these barriers, and providing a diverse menu of resources to meet a range of client needs. 3. Describe any additional duties and activities of the CCC not mentioned in the response above. 4. Describe how the fiscal agent will conduct outreach for participation on the CCC: 5. Describe how the Fiscal Agent will collaborate with the YAC to ensure youth input on decisions made for the CYD program. 6. Describe how the YAC will be involved in: a. Outreach and Awareness b. Evaluation - collecting feedback from local youth, including CYD participants, about CYD services and the impact of services on juvenile delinquency prevention. Te.ntati►e Sched'ute for CCC • rneetiings for FY13 September 9/20/12 March 3/21/13 October 10/18/12 April 4/18/13 November 11/15/12 December 12/20/12 May 5/16/13 June 6120113 January 1/17/13 July 7/18/13 February 2/21/13 August 8115113 I Coimnunity Strengths and Needs Assessment 1 certify that the information from Plan of Operation for FY12 is the same. ❑ The changes being made are detailed below. 1. When was the most recent strengths and needs assessment completed? 2. Based on the completed assessment, list the community's strengths and needs for the prevention of iuvenile delinquency. Community - Strengths- for the - prevention -of- Juvenile - Delinquency: Community Needs for the prevention of Juvenile Delinquency: 3. List and rank the recommended juvenile delinquency prevention funding priorities that resulted from the assessment: Funding Priority 1: Funding Priority 2: CYD Plan of Operation Fiscal Year2013 Page 2 of 5 (September 1, 2012 — August 31, 2013) Funding Priority 3: Funding Priority 4: Funding Priority 5: 4. Describe how the fiscal agent will ensure that all services funded are based on the funding priorities identified in the strengths and needs assessment for the prevention of juvenile delinquency. CYD Services D etail ® I certify that the information from Plan of Operation for FY12 is the same. ❑ The changes being made are detailed below. 1. Is this CYD Program a stand -alone program or a component of a larger program? ❑ Stand -alone El Component of a larger program (Name of the larger program 2. Check the services to be provided: ❑ Youth -Based Curriculum Activity - 01 ❑ Family -Based Curriculum Activity - 02 ❑ Family Focused Service - 05 ❑ Recreational Services - 07 ❑ Academic Support Services - 08 ❑ Life Skills Classes - 09 ❑ Mentoring -10 ❑ Youth Leadership Development -11 ❑ Youth Advisory Committee -12 (only one provider may offer the YAC service) 3. Check the protective factors this program will identify for change: ❑ Involvement with positive peer group activities and norms ❑ Social competencies such as decision making skills, assertiveness and interpersonal skills ❑ Parental /guardian supervision ❑ Caring adults other than parent ❑ Strong bond between children and parents ❑ Emotional support and absence of severe criticism ❑ High parental expectations ❑ Clear rules and expectations ❑ Involvement with school /community ❑ Friendship network ❑ Positive perception of self and others ❑ Places high values on helping others ❑ Sense of purpose CYD Program Description ® 1 certify that the information from Plan of Operation for FY12 is the same. ❑ The changes being made are detailed below. 1. Describe the services to be provided. Include every service indicated in the check box above. Indicate the time of day that services will be provldecr(e.g., after school, weekends, during the school day). 2. Describe what startup activities will be necessary including, but not limited to, hiring and training staff, publicizing your program in the community, and recruiting to the program. Provide a brief timeline for all activities. 3. Identify the frequency, intensity and duration of services for a client: CYD Plan of Operation Fiscal Year 2013 Page 3 of 5 (September 1, 2012 — August 31, 2013) Service Type Use the service type names first and individual program names in parenthesis; if needed ForWhom Target youth; primary caregiver Example: Academic Support (Future Kids) Youth Frequency. :daily, weekly; monthly (1 service dges Llat equal a'time periods such'?a's'an haur� 4 sessions per month • Duration`. the amount Qf time It will;take a client complete the program, • .Intenslty he total # Of • sessions per Client 3 months 12 Sessions (frequency x duration 4. Identify the target population to be served: Youth is an art of the program designed to serve ages other than the CYD target population of 10 -17? Yes 0 No ❑ 1f yes, please describe: Is any part of the program specifically designed to serve only males or females? Yes ❑ No • If yes, please describe: Is any part of the program specifically designed to serve a specific racial or ethnic group? Yes ❑ If yes, please describe: No ❑ 'Client .Recruitment .and'Retention • 1 certify that the information from Plan of Operation for FY12 is the same. ❑ The changes being made are detailed below. 1. Recruitment: a. Describe the process for recruitment of at -risk youth and their families. Provide a description of any outreach strategies used to encourage referrals and collaboration. Include recruitment efforts to address cultural diversity. Identify those agencies and organizations which are likely to refer clients. b. Describe any community- based - outreach- and - awareness - events -or activities -your- program will implement or participate In this year. 2. Retention: c. Describe strategies used to engage youth and their families. Describe any techniques you will implement to establish trust, build rapport, and maintain relationships with your target population. d. Will your program offer incentives for participation? ❑ Yes ❑ No If yes, describe the types of incentives and how they will be used (Note: Please refer to the PEI policy on Incentives). CYD Plan of Operation Fiscal Year 2013 Page 4 of 5 (September 1, 2012 — August 31, 2013) c. Describe your plans to retain youth in the program and ensure youth complete the program. Describe how you will recover youth who stop attending services to return to the program. I Volunteer Recruitment, Retention and Training ® I certify that the information from Plan of Operation for FY12 Is the same. ❑ The changes being made are detailed below. 1. Will the program use volunteers? ❑ Yes ❑ No 2. If yes, describe the procedures for recruiting and screening volunteers and what criteria will be used to ensure they are a good fit to deliver the proposed services. 3. Explain the tasks which will be assigned to volunteers (mentoring, tutoring, presenting), how they will be trained, supervised, and retained (once a month supervision is required per the RFP). 4. If volunteers will serve as mentors, state the adult to youth ratio. Accessibility El I certify that the information from Plan of Operation for FY12 Is the same. ❑ The changes being made are detailed below. 1. Discuss potential barriers (e.g., transportation, child care, etc.) to providing services to the program participants and how you will overcome those barriers. If transportation will not be offered, identify the processes that are used to ensure that these factors are not obstacles to accessing services. 2. . Describe the "safe passage" plan for youth/families without transportation. Signature of Person completing the Plan of Operation for the Contractor: &26( ZK‘'/(a-C d-/rtu. ic/2.-e, W/2 Printed Name Date Signature Signature of DFPS Program Specialist Approving the Plan of Operation: Signature Signature -of -DFPS- Contract - Manager: Signature Printed Name Date Printed Name Date CYD Plan of Operation Fiscal Year2013 Page 5 of 5 (September 1, 2012 -- August 31, 2013) Texas Dept. of Family and Protective Services Prevention and Early Intervention Supplement Program Name: Community Youth Development Attachment I 1. Plan changes and Supplemental bills. Plan changes to budgets and plan of operations are limited to a total of three (3) during the fiscal year with the final plan change to be submitted no later than June 1. Any additional request for plan changes will require a waiver prior to requesting the change. All waiver requests must be submitted to the contract manager with the original signature of the contract's authorized signatory and must completely document specific compelling reasons for the request. Waiver requests must be submitted at least 30 days in advance of the anticipated plan change and are subject to DFPS's approval. Supplemental bills will be accepted once a quarter (due dates to be determined by DFPS) to submit costs not included on the main monthly bill or if additional costs exceed $2,500. Only one supplemental bill may be submitted for each month, so all additional costs must be included. 2. Automated Background Checks. All staff and volunteers that work or will work on the contract are required to have background checks conducted through the Automated Background Check System (ABCS) regardless of whether they have contact with client or client information or if salary is reimbursed through the contract. This includes, but not limited to, Executive Directors and Chief Financial Officers. Forms 2970c and 2971c should be updated when checks are updated every two years and the forms must be kept on file. 3. Performance Measures Reporting. Contractor is required to review performance measure reports from the Prevention and Early Intervention System Database and the STAR database on a monthly basis. Contractor is required to submit the downloaded database reports that reflect all performance measures and a corrective action plan to DFPS no later than 15 days after the end of the first, second, and third quarters for each performance measure that is off track. A corrective action plan must include: (1) a statement of the problem, (2) the proposed steps to be taken, (3) a timeline for each step, (4) the person(s) responsible for implementing each step, and (5) the person responsible for oversight of the plan to ensure it is implemented correctly. The corrective action plan must be submitted on the required template and must outline the measures that will be taken by contractor to address each performance measure that is off track. 4. Cultural Competency. 3 hours of Cultural competency training is required annually for all staff on your DFPS contract. New hires must receive cultural competency training within 60 days after the hire date and annually thereafter. Documentation to support training must be maintained by contractor for review by DFPS. 5. Program Forms and Social Security Numbers. Contractor is required to complete all fields of program forms in their entirety, including any social security number fields. If a client refuses to provide their social security number, contractor must document refusal in the case file. The expectation is that contractors make a good faith effort to obtain social security numbers and other information listed on the program form. Items with an asterisk May 2010 Texas Dept. of Family and Protective Services on program forms are required fields in the database; however, the expectation is that the form is completed thoroughly. Primary caregivers must sign program forms giving consent for services prior to the provision of services. 6. Contractual Obligations. Pursuant to Section 1.28 of the contract, a contractor's acceptance of funds directly under the contract or indirectly through a subcontract acts as acceptance of the authority of the state, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. In accordance with the legislative audit committee, DFPS can request any documentation, at any time, to be sent to DFPS to a location DFPS chooses. Examples of documentation that may be requested includes, but is not limited to, client files in their entirety (progress notes, action plans, registration forms, protective factor surveys, sign in sheets, monthly tracking forms, referral information, etc.), invoices that support monthly billings, a contractor's full general ledger, etc. May 2010 Texas Dept. of Family and Protective Services Cost Reimbursement Supplement for 2282 Attachment II March 2010 1. Cost Reimbursement Contract. 1.1. Basis for Payment. DFPS is not obligated to pay unauthorized costs or to pay more than Contractor's allowable and actually incurred costs consistent with federal and state regulations. Contractor is responsible for submitting bills in an accurate and timely manner for each service period and for notifying the Department of a need to expedite payment. DFPS will make reasonable efforts to process all bills received in an accurate and timely manner, but does not warrant immediate payment. 1.2. Regulation Compliance. Contractor will remain in compliance with 45 CFR Part 74 as applicable, Office of Management and Budget (OMB) Circulars A -133, A -110, A- 21, A -87, and A -122 as applicable, the Uniform Grant Management Standards (UGMS) as applicable, and 40 Texas Administrative Code (TAC) § §732.240 -256 as applicable. The reimbursement made to Contractor will not exceed Contractor's actual costs to provide the services under this Contract and Contractor's actual costs, both direct and indirect, must be allowable, reasonable, and allocable. 1.3. Physical Property. Contractor will assume responsibility for the protection of all physical property and equipment purchased under this Contract. Contractor must furnish DFPS with a written, factual report of the theft of, or damage to, any equipment purchased under this contract, including circumstances concerning the loss. In addition, in the event of any theft, vandalism, or other offense against the properties, Contractor will notify appropriate local law enforcement authorities. 1.4. Equipment. Equipment is any article of tangible nonexpendable personal property having a useful life of more than one year and an acquisition cost that equals or exceeds the lesser of: the capitalization level established by the contractor for financial statement purposes or $5,000. Contractor will follow the provisions of Title 45 Code of Federal Regulations (CFR) Part 74 regarding disposition of any equipment purchased under this Contract with funds allocated to Contractor or its subcontractor. Contractor will not give any security interest, lien, or otherwise encumber any item of equipment purchased with contract funds. Contractor will permanently identify all equipment purchased under this contract by appropriate tags or labels affixed to the equipment. Contractor will maintain a current inventory of equipment that is available to the Department at all times upon request. Cost reimbursement contractors must also follow the following guidelines when contracting with DFPS. 1.4.1. Cost reimbursement contractors must add certain types of equipment items that are classified as "controlled assets" as designated in the Comptroller's State Property Accounting (SPA) Process User's Guide, available on the Internet, to their inventory. Contractors should review the SPA guide periodically for the most current list. 1.4.2. All cost reimbursement contractors must follow the American Hospital Association's (AHA) "Estimated Useful Lives of Depreciable Hospital Assets" for equipment disposition purposes, except when federal or statutory requirements supersede. 1.4.3. Contractors must request DFPS approval before disposing of equipment or controlled assets prior to the end of the useful life for that item. 1.4.4. Any change to the equipment category in a cost reimbursement budget will require prior approval from the Department. Page 1 of 2 Texas Dept. of Family and Protective Services Cost Reimbursement Supplement for 2282 Attachment 11 March 2010 2. Minimum Insurance Standards. 2.1. Contractor will provide insurance for direct delivery of services 48 hours prior to contract signing. Contractor will obtain and furnish proof of the following bonding and insurance coverage within forty -eight (48) hours of the award of the Contract or at such other time as specified by DFPS. The required coverages are: 2.1.1. Dishonesty bonding under a commercial crime policy or business services bonding, at a ten thousand dollar ($10,000.00) minimum; and 2.1.2. Commercial General Liability Coverage at a three hundred thousand dollar ($300,000) minimum for each occurrence limit, and six hundred thousand dollar ($600,000) minimum aggregate limit. The Department will be provided with ample written notice of policy or bond cancellation or material change in the policy or bond. 2.1.3. [Add the following if professional liability insurance is required.] Contractor must provide and furnish evidence of professional liability insurance with the minimum limits of $300,000.00 per occurrence and $600,000.00 aggregate. 2.2. The Contractor will purchase coverage with insurance companies or carriers rated for financial purposes "B" or higher whose policies cover risks located in the State of Texas. All bonds, policies, and coverage will be maintained during the entire term of contract. 2.3. All required insurance policies will include an endorsement stating that the Department will be given thirty (30) calendar days written notice of policy or bond cancellation or a material change in the policy or bond. Page 2 of 2 FY 2013 Performance Measures for Community Youth Development (CYD) Program Procurement Number: 530 -11 -0006 Attachment 111 Goal of the Contract: To prevent delinquency in Target Youths Output Measures Output #1: The expected average number of Target Youths are served monthly. Performance Period: Contractor performance for this output is determined for each month of the contract period, either wholly or partially, depending on the contract start and end dates. indicator: Average number of unduplicated Target Youths served in the Contractor's CYD Program each month Output Target: 300 Purpose: To evaluate the Contractor's effort at providing services to youths in the CYD Program Data Source: PEIS Database Methodology: The numerator is the total number of unduplicated Target Youths served by the Contractor during the most recent completed month, added to the total number of unduplicated Target Youths served by the Contractor during each previous completed month (if any). The denominator is the total number of completed months. Divide the numerator by the denominator. Output #2: The expected number of Target Youths are served during the contract period. Performance Period: Contractor performance for this output is determined annually but measured quarterly throughout the contract period. Indicator: Total number of unduplicated Target Youths served in the Contractor's CYD Program during the contract period. Output Target: 1376 Purpose: To evaluate the Contractor's effort at providing services to youths in the CYD Program Data Source: PEIS Database Methodology: Total number of unduplicated Target Youths with unique client ID numbers that were served by the Contractor during the contract period. Output #3: Pre - Service and Post - Service Protective Factors Survey Questionnaires are completed by the 6 -9 year old Target Youths served. Performance Period: Contractor performance for this output is determined annually but measured quarterly throughout the contract period. Indicator: Percentage of eligible 6 -9 year old Target Youths served in the Contractor's CYD Program from whom completed Pre - Service Protective Factors Survey Questionnaires and matching Post - Service Protective Factor Survey Questionnaires are obtained by the Contractor Target: 60% Purpose: To evaluate the Contractor's effort at obtaining outcome data Data Sources: PEIS Database Methodology: The numerator is the number of eligible 6 -9 year old Target Youths served by the Contractor during the contract period from whom completed Pre - Service Protective Factors Survey Questionnaires and matching Post - Service Protective Factor Survey Questionnaires were obtained. The denominator is the total number of eligible 6 -9 year old Target Youths served by the Contractor during the contract period. Divide the numerator by the denominator, multiply by 100 and state as a percentage. Output #4: Pre - Service and Post - Service Protective Factors Survey Questionnaires are completed by the 10 -17 year old Target Youths served. Performance Period: Contractor performance for this output is determined annually but measured quarterly throughout the contract period. Indicator: Percentage of eligible 10 -17 year old Target Youths served in the Contractor's CYD Program from whom completed Pre - Service Protective Factors Survey Questionnaires and matching Post - Service Protective Factor Survey Questionnaires are obtained by the Contractor Target: 60% Purpose: To evaluate the Contractor's effort at obtaining outcome data Data Sources PEIS Database Methodology: The numerator is the number of eligible 10 -17 year old Target Youths served by the Contractor during the contract period from whom completed Pre - Service Protective Factors Survey Questionnaires and matching Post - Service Protective Factor Survey Questionnaires were obtained. The denominator is the total number of eligible 10 -17 year old Target Youths served by the Contractor during the contract period. Divide the numerator by the denominator, multiply by 100 and state as a percentage. Outcome Measures Outcome #1: 6 -9 year old Target Youths report an increase in the protective factors. Performance Period: Contractor performance for this outcome is determined annually. Indicator: Percentage of unduplicated 6 -9 year old Target Youths who indicate an absolute increase in protective factors, as determined by comparison of the Pre - Service Protective Factors Survey scores to the Post - Service Protective Factors Survey scores Target: 75% (The Contractor's ability or inability to meet or exceed this target will not be the sole means for assessing their success in providing the contracted client services. DFPS reserves the right to revise the target for this outcome measure for any subsequent contract periods based on statewide Contractor performance data.) Purpose: To evaluate the Contractor's success at increasing protective factors in the 6 -9 year old Target Youths who are served by the Contractor's CYD Program Data Sources: PEIS Database Methodology: For each eligible 6 -9 year old Target Youth from whom both Pre- and Post - Service Protective Factors Survey Questionnaires are obtained by the Contractor: 1. Calculate the scores for both the Pre- and Post - Service Questionnaires per instructions in the Protective Factors Survey User Manual. 2. For each set of matching Pre- and Post - Service Questionnaires from the same 6 -9 year old Target Youth, subtract the score in the Pre - Service Protective Factors Survey Questionnaire from the corresponding score in the Post - Service Protective Factors Survey Questionnaire to determine an absolute increase, if any. 3. Count the number of Post- Service Protective Factors Survey Questionnaires that indicate an absolute increase. 4. The numerator is the number of Post - Service Protective Factors Survey Questionnaires that indicate an absolute increase in the score. The denominator is the total number of Post - Service Protective Factors Survey Questionnaires completed by eligible 6 -9 year old Target Youths. Divide the numerator by the denominator, multiply by 100 and state as a percentage. (The Contractor must meet or exceed the target for Output #3 in order to achieve the target for this outcome.) Outcome #2: 10 -17 year old Target Youths report an increase in the protective factors. Performance Period: Contractor performance for this outcome is determined annually. Indicator: The number of Protective Factors Survey subscales (protective factors) for which 10 -17 year old Target Youths indicate an absolute increase by comparing Pre - Service Protective Factors scores to Post- Service Protective Factors scores. Target: One protective factor for which 75% of 10 -17 year old Target Youths indicate an absolute increase (The Contractor's ability or inability to meet or exceed this target will not be the sole means for assessing their success in providing the contracted client services. DFPS reserves the right to revise the target for this outcome measure for any subsequent contract periods based on statewide Contractor performance data.) Purpose: To evaluate the Contractor's success at increasing protective factors in the 10 -17 year old Target Youths who are served by the Contractor's CYD Program Data Sources: PEIS Database Methodology: For each eligiblel0 -17 year old Target Youth from whom both Pre- and Post - Service Protective Factors Survey Questionnaires are obtained by the Contractor: 1. Calculate the subscale scores for both the Pre- and Post - Service Questionnaires per instructions in the Protective Factors Survey User Manual. 2. For each 10 -17 year old Target Youth, subtract the subscale scores in the Pre - Service Protective Factors Survey Questionnaire from the corresponding subscale scores in the Post - Service Protective Factors Survey Questionnaire to determine an absolute increase, if any. 3. For each subscale, count the number of Post - Service Protective Factors Survey Questionnaires that indicate an absolute increase. 4. For each subscale, the numerator is the number of Post - Service Protective Factors Survey Questionnaires that indicate an absolute increase in that subscale score (protective factor). The denominator is the total number of Post - Service Protective Factors Survey Questionnaires completed by eligiblel0 -17 year old Target Youths. Divide the numerator by the denominator, multiply by 100 and state as a percentage. 5. Count the number of subscales (protective factors) for which the percentage equals 75% or more. (The Contractor must meet or exceed the target for Output #4 in order to achieve the target for this outcome.) Outcome #3: 10 -16 year old Target Youths served in the Contractor's CYD Program will not engage in delinquent behavior. Outcome Performance Period: Contractor performance for this outcome is determined annually. Outcome Indicator: Percentage of 10 -16 year old Target Youths that are not referred to a county juvenile probation program while registered in and receiving services from the Contractor's CYD Program Outcome Target: 95% Purpose: To evaluate the Contractor's success in providing services that deter delinquent behavior in 10 -16 year old Target Youths receiving services from the CYD Program Data Sources: Texas Juvenile Justice Department database and PEIS database Methodology: The numerator is the total number of unduplicated 10 -16 year old Target Youths served in the Contractor's CYD Program during the contract period who were also referred to a county juvenile probation program while registered in the Contractor's CYD Program. An existing protocol for matching youth data maintained in the CYD database with youth data maintained by the Texas Juvenile Justice Department database will be used to establish the numerator. The denominator is the total number of unduplicated 10 -16 year old Target Youths served in the Contractor's CYD Program during the contract period. Divide the numerator by the denominator, subtract this number from one, multiply by 100 and state as a percentage. Definitions Absolute Increase — A documented increase in the score for the Post - Service Protective Factors Survey Questionnaire relative to the corresponding score for the matching Pre - Service Protective Factors Survey Questionnaire. Completed Protective Factors Survey Questionnaire — For the Child (age 6 -9) Protective Factors Survey Questionnaire, the Child must have responded to a minimum of 15 items. For the Youth (age 10 -17) Protective Factors Survey Questionnaire, the Youth must have responded to a minimum of 20 items. Contract Period — The total length of this time frame is limited to all or part of the current fiscal year and shall not exceed 12 months. Eligible (to respond to the Post- Service Protective Factors Survey Questionnaire) — A 6 -17 year old Target Youth that has completed a Pre - Service Protective Factors Survey Questionnaire and; • Completed the prescribed CYD Program; or • Participated in the CYD Program for 12 months from the date the Pre - Service Protective Factors Survey Questionnaire was completed. The Post - Service Protective Factors Survey Questionnaire must be the same version (Age 6 -9 or Age 10 -17) that was administered to the youth as the Pre - Service Protective Factors Survey Questionnaire. The youth's age is calculated as of the date of registration or September 1st of the current fiscal year if the youth was registered in a previous fiscal year. Eligible (to respond to the Pre - Service Protective Factors Survey Questionnaire) — A 6 -17 year old Target Youth must be newly registered into the CYD Program during the current contract period. The youth's age is calculated as of the date of registration in the contract period assessed. Post - Service Protective Factors Survey Questionnaire --A tool identical to the Pre - Service Protective Factors Survey Questionnaire administered to the 6 -17 year old Target Youth following the receipt of services and designed to assess changes in the levels of the Target Youth's protective factors. Pre - Service Protective Factors Survey Questionnaire — A tool administered to the 6 -17 year old Target Youth prior to the receipt of services and designed to assess the levels of the Target Youth's protective factors. Protective Factors — Personal characteristics or environmental conditions that interact with risk factors to reduce the likelihood of problem behaviors. Subscale — Groups of questions on the Youth (age 10 -17) Protective Factor Survey Questionnaire indicative of one of five protective factors: Family Bonding /Communication; School Involvement; Individual Self- Esteem /Self- Efficacy; Positive Peer Association; Community Involvement. Target Youths — Youths through 17 years of age who live in and/or attend school in one of the designated ZIP Code areas or attend school at another eligible public middle or high school located outside of the designated ZIP Code area that has at least 30% enrollment from the designated ZIP Code area as determined by DFPS. Unduplicated Target Youth —A Target Youth with a unique client ID number who receives at least one service is only counted one time during the performance period. AGREEMENT TO EXTEND THE SUBCONTRACT WITH COMMUNITIES IN SCHOOLS, CORPUS CHRISTI, INC. Whereas, Communities in Schools submitted a proposal in response to City of Corpus Christi Request for Proposals for the Community Youth Development Program, RFP BI- 0134-11, which stated that the term of the contracts resulting are for a period of one - year with an option to extend for up to four additional one -year periods; Whereas, on August 30, 2011, the Corpus Christi City Council authorized a one -year Subcontract with Communities in Schools effective September 1, 2011, in the amount of $65,000, to provide services for youth ages 10 to 17 in the78415 zip code area, a copy of which is attached as Exhibit A ( "Subcontract "); Whereas, the parties desire to extend the Subcontract for one additional year term with the option to extend for one more additional year; NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. The parties agree to extend the contract period of the subcontract for one additional year, from September 1, 2012 through August 31, 2013. 2. Subcontractor Communities in Schools, Corpus Christi, Inc. agrees to comply with all terms and conditions of the Subcontract. 3. All other terms and conditions of the Subcontract remain in effect. 4. This agreement to extend the subcontract takes effect upon date of last signature. 5. The agreement may be extended for up to one additional one year term upon written agreement of the City Manager and authorized representative of Communities in Schools. Executed in triplicate, each of which is recognized as an original. Attest: Armando Chapa City Secretary City of Corpus Christi Ronald L. Olson City Manager CTOR: Com +' in Schools, Corpus Christi, Inc. oria Tay or Title: D ctor Date: gl AGREEMENT TO EXTEND THE SUBCONTRACT WITH SERCO OF TEXAS Whereas, SERCO of Texas submitted a proposal in response to City of Corpus Christi Request for Proposals for the Community Youth Development Program, RFP BI -0134- 11, which stated that the term of the contracts resulting are for a period of one -year with an option to extend for up to four additional one -year periods; Whereas, on August 30, 2011, the Corpus Christi City Council authorized a one -year Subcontract with SERCO of Texas effective September 1, 2011, in the amount of $85,000, to provide services for youth ages 10 to 17 in the78415 zip code area, a copy of which is attached as Exhibit A ( "Subcontract "); Whereas, the parties desire to extend the Subcontract for one additional year term with the option to extend for one more additional year; NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. The parties agree to extend the contract period of the subcontract for one additional year, from September 1, 2012 through August 31, 2013. 2. Subcontractor SERCO of Texas agrees to comply with all terms and conditions of the Subcontract. 3. All other terms and conditions of the Subcontract remain in effect. 4. This agreement to extend the subcontract takes effect upon date of last signature. 5. The agreement may be extended for up to one additional one year term upon written agreement of the City Manager and authorized representative of SERCO of Texas. Executed in triplicate, each of which is recognized as an original. Attest: City of Corpus Christi Armando =Chaps Ronald L. Olson City Secretary City Manager SUBCONTRACTOR:. SERCO of Texas By: Name: ickie G. V- Idez Title: Vice - President Date: AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: August 2, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Mike Culbertson (361) 882 -7448 mculbertson@ccredc.com An additional Type A Grant to Craft Training Center of the Coastal Bend for expansion of facilities. CAPTION: Approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and Associated Builders & Contractors Merit Shop Training Program, Inc. dba Craft Training Center of the Coastal Bend ( "Craft Training Center ") to provide grant amount up to $750,000 for expansion of Craft's existing facility and authorizing the City Manager or designee to execute a Project Support Agreement with the Type A Board to administer the Craft Training Center Small Business Incentives Agreement and appropriating $750,000 from the unreserved fund balance in the No. 1140 Business /Job Development Fund for a business incentive grant from the Type A Corporation to Craft Training Center for expansion of its facility; Changing the FY 2012 -2013 operating budget, adopted by Ordinance No. 029565, by increasing proposed expenditures by $750,000. PURPOSE: Grant request from Craft Training Center for an amendment to their $1,750,000 grant for an additional $750,000 in funds to complete their expansion of their facilities. Amend the budget to increase the grant to Craft Training Center from $1,750,000 to $2,500,000 from the Unreserved Fund Balance in the No. 1140 Business /Job Development Fund and to appropriate an additional $750,000 from the Unreserved Fund Balance in the No. 1140 Business /Job Development. BACKGROUND AND FINDINGS: On October 17, 2011 Craft Training Center requested a $2.5 million grant from the Type A Board for expansion of their facilities. The Board voted to give them $1.75 million but said that Craft could come back after they had begun construction for additional funding. In a letter dated July 11, 2012 Craft Training Center requested an additional $750,000 in funding to complete their facility. On July 12, 2012 Craft held their ground breaking for the new facility. They now estimate that the total cost will be $4.5 to $4.9 million to build and equip the expanded facility. They are asking for the $750,000 and the rest, $2.0 to $2.4 million, will be made up of industry partners' cash and in -kind donations. ALTERNATIVES: The Craft Training Center needs this additional funding to expand to the degree needed to increase their enrollment to increase the number of graduates needed to fill the positions that will become available. The jobs will be filled by employees coming from outside of the Corpus Christi area. OTHER CONSIDERATIONS: Craft's original request was for $2,500,000. Due to budget constraints in the Type A fund, the Board told Craft that they may come back to the Board for addition funding. CONFORMITY TO CITY POLICY: This project is in line with the City's stated goal of increasing training opportunities for local residents to obtain jobs in local industries. EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: Type A Board FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item 750,000 750,000 BALANCE 750,000 750,000 Fund(s): Type A Fund RECOMMENDATION: Staff recommends approval of a grant for $1,750,000 for an expansion of training facilities for Craft Training Center help train students for work in area industries. LIST OF SUPPORTING DOCUMENTS: Business Incentive Agreement Ordinance Resolution Certification of Funds Page 1 of 2 Ordinance Approving a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation ( "Type A Corporation ") and Associated Builders & Contractors Merit Shop Training Program, Inc. dba Craft Training Center of the Coastal Bend ( "Craft Training Center ") to provide grant amount up to $750,000 for expansion of Craft's existing facility and authorizing the City Manager or designee to execute a Project Support Agreement with the Type A Board to administer the Craft Training Center Small Business Incentives Agreement and appropriating $750,000 from the unreserved fund balance in the No. 1140 Business /Job Development Fund for a business incentive grant from the Type A Corporation to Craft Training Center for expansion of its facility; Changing the FY 2012 -2013 operating budget, adopted by Ordinance No. 029565, by increasing proposed expenditures by $750,000. WHEREAS, the Type A Corporation has budgeted funds to assist businesses create or retain jobs in the City of Corpus Christi, Texas ( "City "). WHEREAS, the Type A Corporation has requested proposals from businesses that will create or retain jobs within the City, and determined that the proposal from Craft Training Center to expand their training facilities within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the business incentives agreement for Craft Training Center's expansion of their facilities between the Type A Corporation and Craft Training Center; WHEREAS, there is a need for a business incentives project support agreement between the City and the Type A Corporation for the implementation and administration of the business incentives agreement for Craft Training Center's expansion of their facilities between the Type A Corporation and Craft Training Center. Now, therefore, be it resolved and ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1. That the business incentives agreement for the creation and retention of jobs between the Type A Corporation and Craft Training Center that provides for the expansion of Craft Training Center's facilities within the City of Corpus Christi, which is attached to this ordinance as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and Type A Corporation for the implementation and administration of the business incentives agreement with Craft Training Center, which is attached to this ordinance as Exhibit B. 0032 2 ORDINANCECraftr8 -8 -12 Page 2 of 2 SECTION 3. That $750,000 from the unreserved fund balance in the No. 1140 Business /Job Development Fund is appropriated for a business incentive grant from the Type A Corporation to Craft Training Center for expansion of its facility. SECTION 4. That Ordinance No. 029565, which adopted the FY 2012 -2013 Operating Fund, is changed to increase proposed expenditures in the No. 1140 Business /Job Development Fund by $750,000 for a business incentive grant from the Type A Corporation to Craft Training Center for expansion of its facility. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame David Loeb Chris N. Adler John E. Marez Kelley Allen Nelda Martinez Larry Elizondo Mark Scott Priscilla G. Leal PASSED AND APPROVED, this the day of , 2012. ATTEST: Armando Chapa City Secretary 0032 2 ORDINANCECraftr8 -8 -12 Joe Adame Mayor AMENDED BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND ASSOCIATED BUILDERS & CONTRACTORS MERIT SHOP TRAINING PROGRAM, INC. DBA CRAFT TRAINING CENTER OF THE COASTAL BEND FOR EXPANSION OF THEIR TRAINING FACILITY IN CORPUS CHRISTI This Business Incentive Agreement for ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and Associated Builders & Contractors Merit Shop Training Program, Inc., a Texas non- profit corporation, doing business as Craft Training Center of the Coastal Bend ("CTCCB"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ( "the Act "), empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens ;; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ( "City ") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 118th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the Texas Comptroller of Public Accounts, effective April 1, 2003, to be administered by the Corporation's Board of Directors ( "Board "); WHEREAS, the ordinance adopting the 118th cent sales tax specifically provided that the funds could be used to make grants to organizations to provide training, retraining, and education to ensure the knowledge and skills required for the jobs of the future are in place; WHEREAS, the Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the City's residents; WHEREAS, the Board of Directors of the Corporation ( "Board "), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ( "Type A Guidelines "), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009 -2011 on November 17, 2009; WHEREAS, Section 501.073 of the Texas Local Government Code requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, CTCCB was formed in 1988 in conjunction with industry partners as a place where area residents could get the skills required to qualify for work in local industrial companies; WHEREAS, CTCCB currently has an enrollment of over 400 students that are receiving training in an industrial curricula and conducts 1,500 assessments per year for employment at local industrial companies ; WHEREAS, CTCCB intends to expand its existing training program by adding the new training stations and new classes at its Corpus Christi location on Leopard Street ("Facility"), which will Page 1 of 9 CRAFT Craft Cr Amended BUS INCENTIVE AGREEMENT 7 -27 -12 allow it to increase their enrollment by up to 50% and train more students for employment in the local industries; WHEREAS, the Corporation originally approved a grant of $1,750,000 to CTCCB on October 17, 2011 and entered into a business incentive agreement with CTCCB, approved by the City Council by Resolution No. 029304 on December 6, 2011; WHEREAS, the Corporation approved an additional grant of $750,000 to CTCCB on July 23, 2012, increasing the total grant to CTCCB to $2,500,000; WHEREAS, the proposed grant from the Corporation will further CTCCB's mission of education and economic development; WHEREAS, the local industry produces meaningful, wealth producing jobs that bring in dollars from outside of the City into the City; and WHEREAS, CTCCB proposes to invest at east $3,500,000 over a two year period to increase and expand its training facility in the City; In consideration of the covenants, promises, and conditions stated in this Agreement, the Corporation and CTCCB agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest date that either party executes this Agreement. 2, Term. The term of this Agreement is for five years beginning on the Effective Date. 3, Performance Requirements and Grants. a. CTCCB shall expand its Facility to add additional training space in order to expand its existing programs and to develop new programs needed by local and regional employers. b. CTCCB shall invest at least $3,500,000 in the expansion of its Facility to be used for training students and CTCCB shall annually report its actual investments at the Facility and provide documentation to support its report to the Corporation. c. The Corporation will reimburse CTCCB for the costs incurred by CTCCB to expand and improve its Facility in the City, including the purchase of fixtures, furnishings, and instructional equipment. The amount reimbursed by the Corporation may not exceed $2,500,000. d. On the annual anniversary of the Effective Date of this Agreement, CTCCB shall report to the Corporation the total number of students enrolled and the total number of course graduates placed with area industry within the City and the industrial districts in jobs requiring training provided by CTCCB through their facilities on Leopard Street and the average starting annual salaries paid by each employer within Corpus Christi during the previous year. Page 2 of 9 CRAFT Craft Ctr Amended BUS INCENTIVE AGREEMENT 7-27-12 4. Job Training Qualification. a. In order to be eligible for funds for job training under this Agreement, CTCCB must commit in writing to create jobs that pay wages at least as high as the wages required by Section 501.162 of the Act, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. A "job" is defined in the Type A Guidelines as a full-time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. 5. Utilization of Local Contractors and Suppliers. CTCCB agrees to exercise reasonable efforts in utilizing local contractors and suppliers in the construction of the Project, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency in the normal course of business, with a goal of 50% of the total dollar amount of all construction contracts and supply agreements being paid to local contractors and suppliers. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. CTCCB agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of CTCCB to comply with the Local Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if CTCCB is in compliance with this requirement. Failure to substantially comply with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. 6. Warranties. CTCCB warrants and represents to the Corporation the following: a. CTCCB is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, and has all corporate power and authority to carry on its business as presently conducted in the City. b. CTCCB has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. CTCCB has timely filed and will timely file all local, state, and federal tax reports and returns required by law to be filed, and all taxes, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. CTCCB has access to the Act, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under state law and by the terms of this Agreement. e. The parties executing this Agreement on behalf of CTCCB are duly authorized to execute this Agreement on behalf of CTCCB. f. CTCCB does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, CTCCB is convicted of a violation under §U.S.C. Section 1324a(f), CTCCB shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date CTCCB has been notified of the violation. Page 3 of 9 CRAFT Craft Ctr Amended BUS INCENTIVE AGREEMENT 7-27-12 7. Compliance with Laws. CTCCB shall observe and obey all applicable federal, state, and local laws, ordinances, regulations, and rules. 8. Non - Discrimination. CTCCB covenants and agrees that CTCCB will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 9. Force Majeure. If the Corporation or CTCCB are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or CTCCB are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 10. Assignment. CTCCB may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and the City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 11. INDEMNIrf. TO THE EXTENT AUTHORIZED BY LAW, CTCCB COVENANTS TO FULLY INDEMNIFY, SAVE, AND HOLD HARMLESS THE CORPORATION, THE CITY, AND THEIR RESPECTIVE OFFICERS, EMPLOYEES, AND AGENTS (INDEMNITEES”) AGAINST ALL LIABILITY, DAMAGE, LOSS, CLAIMS DEMANDS, AND ACTIONS OF ANY KIND ON ACCOUNT OF PERSONAL INJURIES (INCLUDING, WITHOUT LIMITING THE FOREGOING, WORKERS' COMPENSATION AND DEATH CLAIMS), OR PROPERTY LOSS OR DAMAGE OF ANY KIND, WHICH ARSE OUT OF OR ARE IN ANY MANNER CONNECTED WITH, OR ARE CLAIMED TO ARISE OUT OF OR BE IN ANY MANNER CONNECTED WITH CTCCB'S ACTIVITIES CONDUCTED UNDER OR INCIDENTAL TO THIS AGREEMENT, INCLUDING ANY INJURY, LOSS OR DAMAGE CAUSED BY THE SOLE OR CONTRIBUTORY NEGLIGENCE OF ANY OR ALL OF THE INDEMNITEES. CTCCB MUST, AT ITS OWN EXPENSE, INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED ON THOSE CLAIMS AND DEMANDS WITH COUNSEL SATISFACTORY TO INDEMNITEES, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COST AND EXPENSES OF ANY KIND ARISING FROM THE LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, OR ACTIONS. 12. Events of Default. The following events constitute a default of this Agreement: a. Failure of CTCCB to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Agreement. b. The Corporation or the City determines that any representation or warranty on behalf of CTCCB contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made.. Page 4 of 9 CRAFT Craft Ctr Amended BUS INCENTIVE AGREEMENT 7 -27 -12 c. Any judgment is assessed against CTCCB or any attachment or other levy against the property of CTCCB with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. d. CTCCB makes an assignment for the benefit of its creditors. e. CTCCB files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. The taxes owed by CTCCB become delinquent, and CTCCB fails to timely and properly follow the legal procedures for protest or contest, g. CTCCB changes the general character of its business as conducted as of the date this Agreement is approved by the Corporation. 13. Notice of Default. Should the Corporation or the City determine that CTCCB is in default according to the terms of this Agreement, the Corporation or City shall notify CTCCB in writing of the event of default and provide sixty (60) days from the date of the notice (Cure Period") for CTCCB to cure the event of default. 14. 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 CTCCB, as determined by the Board, the following actions must be taken for any default that remains uncured after the Cure Period. a. CTCCB shall immediately repay all funds paid by the Corporation under this Agreement. b. CTCCB shall pay the Corporation for the reasonable attorney fees and costs of court incurred by the Corporation to collect any amounts due under this Agreement. c. The Corporation shall have no further obligations to CTCCB under this Agreement. d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 15. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of CTCCB's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time CTCCB is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to Page 5 of 9 CRAFT Craft Ctr Amended BUS INCENTIVE AGREEMENT 7-27-12 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 the Corporation may at any time avail itself of any rights or remedies or elect to terminate this Agreement on account of the default. 16. Limitation of Liability. CTCCB specifically agrees that the Corporation shall only be liable to CTCCB for the actual amount of the money grants to be conveyed to CTCCB, and shall not be liable to CTCCB for any actual or consequential damages, direct or indirect, interest, attorney fees, or costs of court for any act of default by the Corporation under the terms of this Agreement. Payment by the Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the term of this Agreement. The Corporation shall use its reasonable best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with the Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less the Corporation's customary and usual costs and expenses, as compared to each contracting party's grant amount for that year, and the Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, the Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from CTCCB to be accompanied by all necessary supporting documentation. 17. Notices. a. Any required written notices shall be sent by United States certified mail, postage prepaid, addressed as follows: CTCCB: Craft Training Center of the Coastal end Attn: President 7433 Leopard Street Corpus Christi, Texas 78409 Corporation: City of Corpus Christi Business and Job Development Developmerit Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent to the City at the fo lowing address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 Page 6 of 9 CRAFT Craft Ctr Amended BUS INCENTIVE AGREEMENT 7-27-12 c. Notice is effective upon deposit in the United States maU if sent in the manner provided above. 18. Incorporation of other documents. The Corporation Guidelines, as amended, are incorporated into this Agreement. 19. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 20. Relationship of Parties. In performing this Agreement, both the Corporation and CTCCB will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 21. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 22. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 23. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 24. Sole Agreement. This Agreement constitutes the sole agreement between the Corporation and CTCCB. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 25. Survival of Terms of Agreement and Obligations of Parties. The terms of this agreement and the obligation of the parties relating to Sections 14.a and 14.b shall survive the termination of this Agreement. Page 7 of 9 CRAFT Craft Ctr Amended BUS INCENTIVE AGREEMENT 7-27-12 Corpus Christi Business & Job Development Corporation By: Date: Attest: By: Eloy Salazar President Armando Chapa Assistant Secretary Page 8 of 9 CRAFT Craft Ctr Amended BUS INCENTIVE AGREEMENT 7-27-12 Associated Builders & Contractors Merit Shop Training Program, Inc. dba Craft Training Center of the Coastal Bend By: m,vt,/ Anne Matula President Date: 12— THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on 2012, by Anne Matula, as President of Associated Builders & Contract it Shop Training Program, Inc. dba Craft Training Center of the Coastal Bend, a Texas non-profit corporation, on behalf of said corporation. Notary Public State of Texas 14 MI/ SAAL • ^ . I " 06 \ / 6 2 ‘\\\\ Page 9 of 9 CRAFT Craft CtrArnended BUS INCENTIVE AGREEMENT 7-27-12 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: 08/14/2012 TO: Ronald L. Olson, City Manager FROM: Floyd Simpson, Chief of Police flovdsCa�cctexas. com 361- 886 -2603 Approve agreement with Flour Bluff ISD and appropriate revenue and expenditures for two additional school crossing guards CAPTION: Ordinance authorizing the City Manager or designee to execute an agreement with the Flour Bluff Independent School District to reimburse the City of Corpus Christi for the services of three additional School Crossing Guard positions during the school year 12/13 and for each subsequent school year; and appropriating $20,000 from Flour Bluff Independent School District for two additional school crossing guards, changing the FY2013 Operating Budget adopted by Ordinance No. 029577 by increasing revenue and expenditures in the General Fund No. 1020 by $20,000 each. PURPOSE: Flour Bluff ISD has requested two additional school crossing guards and they will reimburse the City. BACKGROUND AND FINDINGS: In 92/93 the Flour Bluff ISD requested and the City authorized the services of an additional School Crossing Guard. These services have been reimbursed each year since. The FBISD has requested an additional two School Crossing Guards for a total of three which will be reimbursed. The district will be invoiced on a quarterly basis for actual hours worked, not to exceed an annual total of $30,000. This will cover the total cost for three School Crossing Guard positions. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Conforms to all city policies. EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: Legal Budget FINANCIAL IMPACT: Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 188,487.07 188,487.07 Encumbered / Expended Amount This item 20,000 20,000 BALANCE 208,487.07 208,487.07 Fund(s): General, Police Comments: The financial impact reflects only $20,000 increase as expenditure and revenue for one guard for FBISD is already included in the adopted budget. RECOMMENDATION: Approval of the agreement. LIST OF SUPPORTING DOCUMENTS: Agreement Ordinance authorizing the City Manager or designee to execute an agreement with the Flour Bluff Independent School District to reimburse the City of Corpus Christi for the services of three additional School Crossing Guard positions during the school year 12/13 and for each subsequent school year; and appropriating $20,000 from Flour Bluff Independent School District for two additional school crossing guards, changing the FY2013 Operating Budget adopted by Ordinance No. 029577 by increasing revenue and expenditures in the General Fund No. 1020 by $20,000 each. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager or designee is authorized to execute an agreement with the Flour Bluff Independent School District to reimburse the City of Corpus Christi for the services of three additional School Crossing Guard positions during the school year 12/13 and for each subsequent school year. SECTION 2. That $20,000 is appropriated from the Flour Bluff Independent School District, changing the FY2013 Operating Budget adopted by Ordinance No. 029577 by increasing revenue and expenditures in the General Fund No. 1020 by $20,000 each. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame Chris N. Adler Kelley Allen Larry Elizondo, Sr Priscilla G. Leal David Loeb John Marez Nelda Martinez Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the day of , 2012 by the following vote: Joe Adame David Loeb Chris N. Adler John Marez Kelley Allen Nelda Martinez Larry Elizondo, Sr Mark Scott Priscilla G. Leal PASSED AND APPROVED this the day of , 2012. ATTEST: Armando Chapa City Secretary Joe Adame Mayor THE STATE OF TEXAS § COUNTY OF NUECES § INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND FLOUR BLUFF INDEPENDENT SCHOOL DISTRICT This agreement (Agreement) is entered into between the City of Corpus Christi, a Texas home rule municipal corporation (City) and the Flour Bluff Independent School District (FBISD) for purposes of the Interlocal Cooperation Act, Texas Government Code Chapter 791, as amended, to achieve efficiency in meeting intergovernmental responsibilities. WHEREAS, FBISD is authorized to do so, desires to engage and to pay for the services of three school crossing guards from the City. These school crossing guards are in addition to regular guards and /or services that are provided to the FBISD; WHEREAS, the City through the assistance, coordination and management of the Corpus Christi Police Department provides school crossing guards for local schools and is presently capable of providing three additional school crossing guards to FBISD. WHEREAS, FBISD retains the services of three school crossing guards from the City for a fee not to exceed a total of Thirty Thousand ($30,000.00) for the school year. NOW THEREFORE the City and FBISD in consideration of the mutual covenants contained herein agree as follows: 1. TERM. This agreement shall be for a period from the beginning of the regular school year in August, 2012 to the end of the regular school year in May, 2013. 2. SERVICES. The City of Corpus Christi shall provide three school crossing guards for the regular FBISD school year to assist pedestrians in the crossing of public roadways while going to and coming from school in the Flour Bluff area. 3. COMPENSATION. The City will be responsible for invoicing FBISD for the services rendered on a quarterly basis, beginning on December 1, 2012 and continuing on March 1, 2013 and June 1, 2013. The invoices will be for actual hours worked and shall not exceed a total of Thirty Thousand ($30,000.00) for the school year. Said rate may change if the position receives a cost of living increase during the contractual period, and FBISD agrees to said increase, if any. FBISD will be responsible for reimbursing the City for said invoice within 30 days of receipt of said invoice. Said services are to be paid from current revenues available to FBISD. 4. RENEWAL AND TERMINATION. This agreement shall be made renewable at the beginning of each school year unless written notice not to renew is given to the other party by July 15th of each year. This agreement may be terminated by either party at any time, without cause, upon no less than thirty (30) days written notice to the other party. 5. ASSIGNMENT. Neither this agreement nor any duties or obligations hereunder shall be assignable by the City without the prior written consent of the FBISD: 6. EQUAL OPPORTUNITY. Services shall be provided by the City in compliance with the Civil Rights Act of 1964. The City will not discriminate against any employee, applicant for employment, or client because of race, religion, color, sex, national origin, age, or' handicapped condition, and will ensure that employees are treated during employment without regard to their race, religion, color, sex, national origin, age, or handicapped condition. 7. GOVERNING LAW. The validity of this agreement and of any of its terms or provisions as well as the rights and duties of the parties hereunder, shall be governed by the laws of the State of Texas and venue lies exclusively in Nueces County, Texas. FLOUR BLUFF INDEPENDENT SCHOOL DISTRICT Dr. J Carbajal Superintendent Date: 7/3//).a. ATTEST Armando Chapa City Secretary Date: CITY OF CORPUS CHRISTI Ronald L. Olson City Manager Approved as to legal form: , 2012 Buck Brice Assistant City Attorney For City Attorney CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his /her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: August 28,2012 Agenda Item: Ordinance authorizing the City Manager or designee to execute an agreement with the Flour Bluff Independent School District to reimburse the City of Corpus Christi for the services of three additional School Crossing Guard positions during the school year 12/13 and for each subsequent school year; and appropriating $20,000 from Flour Bluff Independent School District for two additional school crossing guards, changing the FY2013 Operating Budget adopted by Ordinance No. 029577 by increasing revenue and expenditures in the General Fund No. 1020 by $20,000 each. Amount Required: $ 20,000 Fund Name Account No. Fund No. Org. No. Project No. Amount Police General 510000 1020 11850 00000 $20,000 Total $20,000 ❑ Certification Not Required Director of Financial Services Date: Print on Green Pape AGENDA MEMORANDUM Future Item for the City Council Meeting of 8/21/2012 Action Item for the City Council Meeting of 8/28/2012 DATE: TO: FROM: Daniel Biles, P.E., Director of Engineering Services danb @cctexas.com; 826 -3729 August 20, 2012 Ronald L. Olson, City Manager Approval of Professional Services Contract for the Barge Dock Elevation — Phase 1 Project CAPTION: Ordinance transferring and appropriating $350,000 from the Unreserved Fund Balance in No. 1120 Seawall Improvement Fund to and appropriating in the No. 3271 Seawall Type A CIP Fund for the Barge Dock Elevation Phase 1 Project; authorizing the City Manager or designee to execute a Professional Services Contract with RVE, Inc. of Corpus Christi, Texas in the amount of $309,870.00 for the Barge Dock Elevation Phase 1 Project. PURPOSE: To award the professional services contract for the Barge Dock Elevation — Phase 1 project. BACKGROUND AND FINDINGS: Original construction of the Barge Dock was completed in 1941, concurrently with the seawall system. Rehabilitation to the Barge Dock ramp was completed in 1983. The last comprehensive inspection and evaluation of the concrete seawall system was completed in 1999. The 1999 evaluation did not include a detailed inspection of the seawall barge dock area and adjoining sloped seawall section. Recent visual observations of this remaining section of the seawall reveal potential structural distress. The U.S. Department of Homeland Security, Federal Emergency Management Agency (FEMA) is preparing updated and revised Flood Insurance Rate Maps (FIRMs) for Nueces County, Texas. This effort will provide updated Flood Insurance Rate Maps (FIRMs) and a Flood Insurance Study (FIS) for Nueces County, including the City of Corpus Christi. This update is part of FEMA's Risk Mapping, Assessment, and Planning (Risk MAP) and reflects FEMA policy revisions that address future storm surge criteria developed for Post Hurricane Katrina and Hurricane Ike assessment. In particular, FEMA's assessment methodologies of and criteria for storm surge analysis and wave run -up along coastal structures and levee systems have changed. Therefore, a more detailed forensic assessment of the barge dock and the adjacent sloped C:AProgram Files \ Granicus \Legistar5\ Packet \995City Council 8 21 2012 \0034 1Memo - Barge Dock. docx seawall is required prior to pursuing the full scope of improvements as identified in the 2012 Capital Improvement Program. An investigation and analysis of the current condition of the barge dock to estimate the fitness of the overall structure to perform as originally designed, per current engineering standards and FEMA approved modeling methods using FEMA - proposed wave run -up data is proposed. This project also provides for collaboration with Barge Dock Stakeholders to determine if the Barge Dock should continue to function as designed, or if additional uses should be considered. Opinions of anticipated construction costs for potential alternatives will be developed for future Type A Board and City Council consideration. This professional services contract was approved by the Corpus Christi Business and Job Development Corporation on July 16, 2012 to be recommended to the City Council. ALTERNATIVES: 1. Award the contract to RVE, Inc. as outlined herein. 2. Do not award the contract. OTHER CONSIDERATIONS: Project schedule includes completion of detailed forensic assessment in August 2013 and completion of conceptual planning to determine future function of Barge Dock in March 2014. CONFORMITY TO CITY POLICY: Conforms to statutes regarding Request for Qualifications process and the FY2012 -2013 Capital Budget and conforms to requirements of the Corpus Christi Business and Job Development Board for appropriation and use of Type A funds for seawall maintenance EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: Type A Board FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $8,700,000.00 $8,700,000.00 Encumbered / Expended Amount This item $309,870.00 $309,870.00 Future Expenditures $7,997,500.00 $7,997,500.00 BALANCE $392.630.00 $392,630.00 Fund(s): Seawall Systems CIP 3271 C:AProgram Files \ Granicus \Legistar5\ Packet \995_City Council 8 _ 21 _ 2012 \0034 1_Memo - Barge Dock. docx Comments: Geotechnical and forensic testing services will also be required to complete this project and the scope and costs associated with these services will be determined as part of this project with subsequent presentation to the Type A Board for consideration. Future costs associated with design and construction of Barge Dock improvements will be determined pending the results of this assessment with subsequent presentation to the Type A for consideration. This project is pending funding approval by the City Council and will require close coordination with the City's Type A Board and the City Council. RECOMMENDATION: City Staff recommends the contract be awarded to RVE, Inc. of Corpus Christi, Texas, in the amount of $309,870.00 for the Barge Dock Elevation Project Phase 1. LIST OF SUPPORTING DOCUMENTS: Contract Project Budget Location Map Ordinance C:AProgram Files \ Granicus \Legistar5\ Packet \995_City Council 8 _ 21 _ 2012 \0034 1_Memo - Barge Dock. docx PROJECT BUDGET Barge Dock Elevation - Phase 1 Project No. 3426 August 21, 2012 FUNDS AVAILABLE: Seawall Systems CIP Fund (Current Authorization) $ 350,000.00 Seawall Systems CIP Fund (Future Authorization) $ 8,350,000.00 TOTAL AVAILABLE: $ 8,700,000.00 FUNDS REQUIRED: Construction (Estimated) $ 6,750,000.00 Contingencies (10 %) $ 675,000.00 Consultant Fees: Engineering Consultant (RVE, Inc.) $ 309,870.00 Testing Agreement (Estimated Geotechnical & Forensic Testing) $ 100,000.00 Reimbursements: Contract Administration (Contract Preparation /Award /Admin) $ 168,750.00 Engineering Services (Project Mgt /Constr Mgt/Traffic Mgt) $ 168,750.00 Finance Reimbursements $ 101,250.00 Misc. (Printing, Advertising, etc.) $ 33,750.00 TOTAL $ 8,307,370.00 ESTIMATED PROJECT BUDGET BALANCE $ 392,630.00 File : \Mproject \councilexhibits \exh3426.dwg PROJECT SITE CONVENTION CENTER HUGHES MULTI- PURPOSE ARENA PROJECT #3426 PALO ALTO Vf VICINITY MAP NOT TO SCALE BARGE DOCK ELEVATION - PHASE 1 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 Page 1 of 2 Ordinance transferring and appropriating $350,000 from the Unreserved Fund Balance in No. 1120 Seawall Improvement Fund to and appropriating in the No. 3271 Seawall Type A CIP Fund for the Barge Dock Elevation Phase 1 Project; authorizing the City Manager or designee to execute a Professional Services Contract with RVE, Inc. of Corpus Christi, Texas in the amount of $309,870.00 for the Barge Dock Elevation Phase 1 Project. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. An amount of $350,000 from the Unreserved Fund Balance in No. 1120 Seawall Improvement Fund is transferred to and appropriated in the No. 3271 Seawall Type A CIP Fund for the Barge Dock Elevation Phase 1 Project. SECTION 2. The City Manager or designee is authorized to execute a Professional Services Contract with RVE, Inc. of Corpus Christi, Texas in the amount of $309,870.00 for the Barge Dock Elevation Phase 1 Project. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary 0034_4_Ordinance - Barge Dock Joe Adame Mayor Page 2 of 2 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2012, by the following vote: Joe Adame John E. Marez Chris N. Adler Nelda Martinez Larry Elizondo, Sr. Mark Scott Kelly Allen David Loeb Priscilla G. Leal The foregoing ordinance was read for the second time and passed finally on this the day of , 2012, by the following vote: Joe Adame John E. Marez Chris N. Adler Nelda Martinez Larry Elizondo, Sr. Mark Scott Kelly Allen David Loeb Priscilla G. Leal PASSED AND APPROVED on this the day of , 2012. ATTEST: Armando Chapa City Secretary 0034_4_Ordinance - Barge Dock Joe Adame Mayor CITY OF CORPUS CHRISTI CONTRACT FOR PROFESSIONAL SERVICES The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469 -9277 (City) acting through its duly authorized City Manager or Designee (Director of Engineering Services) and RVc., a Texas corporation, 820 Buffalo Street, Corpus Christi, Nueces County, Texas 78401, (Architect/Engineer — A /E), hereby agree as follows: 1. SCOPE OF PROJECT (Barge Dock Improvements: Project #3426) The Barge Dock Investigation includes project management, research and review of record drawings and information, topographic and bathymetric survey, geotechnical and concrete testing and analysis, void survey, timber pile evaluation, bulkhead and tie back evaluation, storm sewer condition observations, and underwater storm sewer outfall observations of the barge dock and rear sloped seawall from the north end of the stepped seawall where it meets the south end of the barge dock, to the north end of the barge dock where it meets the Art Museum. As an option, the City may also elect to include a wave loading analysis, and structural stability analysis to determine the structural condition of the barge dock and seawall after the initial investigation. The investigation and analysis will estimate the fitness of the overall structure to perform as originally designed, per current engineering standards and FEMA approved modeling methods, from wave height data developed by URS for the recently published Draft FIRM Map 320 G update. The Barge Dock Definition includes meetings with Barge Dock Stakeholders and City Staff, and engineering analysis to determine if the Barge Dock should continue to function as designed, or if additional uses, or a different use or uses are needed. The result of this project would determine what, if any, improvements are needed, what those improvements would look like, and a rough order of magnitude of the improvement costs. The first step would be meetings with Stakeholders, in addition to applicable City departments, to develop a project definition. These Stakeholders would likely include the Type A Board, Port of Corpus Christi, RTA, American Bank Center, Downtown Development District, Art Museum and others as determined by City Staff. These meetings would identify the wants and needs of the various groups. Using that information a written project program with conceptual drawings would be developed for presentation to the Stakeholders for review and comment. The plan would then be presented to Council for concept approval. The concept and drawings would finally be refined based on Stakeholder and Council comments, a rough order of magnitude of costs would be developed, and a final presentation made to Council for approval and authorization to proceed with design. The Barge Dock Design Project scope and budget has not been defined and will be included by addendum, if funded. CONTRACT FOR ENGINEERING (AIE) SERVICES Page 1 of 4 K:SEngineering gataExchange \ClarisseSiCily Facilities\3426 . Barge Dock \Professional Services ConlracME Contracl.docx 2. SCOPE OF SERVICES The A/E hereby agrees, at its own expense, to perform investigations, develop a use definition and a rough order of magnitude of costs, and design services necessary to prepare reports and recommendations, 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. Exhibit "A -1" provides supplemental description of services to Exhibit "A" and does not intended to supersede services described in Exhibit "A ". Work will not begin on Additional Services until requested by the A/E (provide breakdown of costs, schedules), and written authorization is provided by the Director of Engineering Services. A/E services will be "Services for Construction Projects " - (Basic Services for Construction Projects ") which are shown and are in accordance with "Professional Engineering Services- A Guide to the Selection and Negotiation Process, 1993" a joint publication of the Consulting Engineer's Council of Texas and Texas Society of Professional Engineers. For purposes of this contract, certain services listed in this publication as Additional Services will be considered as Basic Services. 3. ORDER OF SERVICES The AIE agrees to begin work on those authorized Basic Services for this contract upon receipt of the Notice to Proceed from the Director of Engineering Services. Work will not begin on any phase or any Additional Services until requested in writing by the AIE and written authorization is provided by the Director of Engineering Services. The anticipated schedule of the preliminary phase, design phase, bid phase, and construction phase is shown on Exhibit "A ". This schedule is not to be inclusive of all additional time that may be required for review by the City staff and may be amended by or with the concurrence of the Director of Engineering Services. The Director of Engineering Services may direct the AIE to undertake additional services or tasks provided that no increase in fee is required. Services or tasks requiring an increase of fee will be mutually agreed and evidenced in writing as an amendment to this contract. NE shall notify the City of Corpus Christi within three (3) days of notice if tasks requested requires an additional fee. 4. MANDATORY REQUIREMENTS NE agrees to the mandatory contract and insurance requirements as set forth in Exhibit "B". CONTRACT FOR ENGINEERING (AIE) SERVICES Page 2 of 4 K LEngineering DalaExchange \ClarissaJlCity Facilitias13426 - Barge Dock4Professional Services Contracl4AE Conlracidocx lv 5. FEE The City will pay the A/E a fee, as described in Exhibit "A ", for providing services authorized. Monthly invoices will be submitted in accordance with Exhibit "D ". 6. TERMINATION OF CONTRACT The City may, at any time, with or without cause, terminate this contract upon seven days written notice to the NE at the address of record. In this event, the A/E will be compensated for its services on all stages authorized based upon A/E and City's estimate of the proportion of the total services actually completed at the time of termination. 7. LOCAL PARTICIPATION The City Council's stated policy is that City expenditures on contracts for professional services be of maximum benefit to the local economy. The NE agrees that at least 75% of the work described herein will be performed by a labor force residing within the Corpus Christi Metropolitan Statistical Area (MSA). Additionally, no more than 25% of the work described herein will be performed by a labor force residing outside the Corpus Christi Metropolitan Statistical Area (MSA.) 8. ASSIGNABILITY The A/E will not assign, transfer or delegate any of its obligations or duties in this contract to any other person without the prior written consent of the City, except for routine duties delegated to personnel of the NE staff. If the A/E is a partnership, then in the event of the termination of the partnership, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the NE fee may be assigned in advance of receipt by the A/E without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. HDR Engineering Inc. is approved to assist with the Barge Dock investigation. 9. OWNERSHIP OF DOCUMENTS All documents including contract documents (plans and specifications), record drawings, contractor's field data, and submittal data will be the sole property of the City, may not be used again by the A/E without the express written consent of the Director of Engineering Services. However, the A/E may use standard details that are not specific to this project. The City agrees that any modification of the plans will be evidenced on the plans, and be signed and sealed by a professional engineer prior to re -use of modified plans. CONTRACT FOR ENGINEERING (A/E) SERVICES Page 3 of 4 K:SEngineering DalaExchangelClarisseJ \City Facililies43426 - Barge OockSProfessional Services Contrachf4E Contracl.docx cr, 10. INSURANCE, INDEMNIFICATION AND HOLD HARMLESS The Consultant will submit to the City Engineer a certificate of insurance, with the City named as additionally insured, showing the minimum coverage set forth in Exhibit "B" by an insurance company acceptable to the City. The Consultant further agrees to indemnify, save harmless and defend the City of Corpus Christi, and its agents, servants, and employees as more fully set forth in Exhibit "B ". 11. DISCLOSURE OF INTEREST A/E further agrees, in compliance with City of Corpus Christi Ordinance No. 17112, to complete, as part of this contract, the Disclosure of Interests form attached hereto as Exhibit "C ". CITY OF CORPUS CHRISTI 1 1 0-1-I Z, Oscar Martinez, P.E. Date Patrick i Veteto, P.E. Date Assistant City Manager 820 Buffalo Street RECOMMENDED Daniel Biles, P.E. Date Director of Engineering Services ATTEST Armando Chapa, City Secretary Corpus Christi, TX 78401 (361) 887 -8851 Office (361) 887 -8855 Fax APPROVED AS TO FUNDING ONLY ENTERED AUG 012012 Office of Mgmt & Budget Date CONTRACT MANAGERS' CONTRACT FOR ENGINEERING (A/E) SERVICES Page 4of4 K:SEngineering DateExchangeTlarisseACily Facilities13426 - Barge Dock4Prolessionel Services ConlracME Conlracl.docx EXHIBIT A CITY OF CORPUS CHRISTI, TEXAS Barge Dock Improvements: Project #3426 1. SCOPE OF SERVICES A. Basic Services. (Basic Services will include the following in addition to those items shown on Exhibit "A -1" Task List.) 1. Preliminary Phase. The ArchitectlEngineer -A/E will: It is the intent of the Preliminary Phase to provide a study and report of project scope with economic and technical evaluation of alternatives, and upon approval, proceed in a Engineering Letter Report which includes preliminary designs, drawings, and written description of the project. This report shall include: a. Provide scope of soil investigations, borings, and laboratory testing and make recommendations to the City. Coordinate all required services with the. Geotech Lab. ( The City Engineering Services Department will provide necessary soil investigation and testing under one or more separate contracts.) b. Confer with the City staff at the start of this phase regarding the design parameters of the Project. The Engineer will participate in a minimum of four (4) formal meeting(s) with City staff, provide agenda and purpose for each formal meeting; document and distribute meeting minutes and meeting report within seven (7) working days of the meeting. The A/E will discuss the project with the operating department (Water, Wastewater, Gas, Storm Water, Streets, etc.) and other agencies, including but not limited to the Texas Department of Transportation (TxDOT) and Texas Commission on Environmental Quality (TCEQ) as required to satisfactorily complete the Project. c. Submit one (1) copy in an approved electronic format, and one (1) paper copy of the Engineering Letter Report, with executive summary, opinion of probable construction costs, defined technical evaluations of identified feasible alternatives and review with City staff to produce an acceptable format. The Engineering Letter Report will include the following (with CONSTRUCTABILITY being a major element in all the following items): 1) Review the Project with the respective Operating Department(s) for clarification and definition of intent and execution of the Project; The A/E will meet with City staff to collect data, discuss materials and methods of construction, and identify design and construction requirements. 2) Review and investigation of available records, archives, and pertinent data related to the Project including taking photographs of the Project site, list of potential problems and possible conflicts, intent of design, and improvements required, and conformance to relevant Master Plan(s). 3) Identify results of site field investigation including site findings, existing conditions, potential right of way /easements, and probable Project design solutions (which are common to municipalities). EXHIBIT "A" Page 1 of 11 4) Provide a presentation of pertinent factors, sketches, designs, cross - sections, and parameters which will or may impact the design, including engineering design basis, preliminary layout sketches, identification of needed additional services, preliminary details of construction of critical elements, identification of needed permits, identification of specifications to be used, identification of quality and quantity of materials of construction, and other factors required for a professional design (CONSTRUCTABILITY). 5) Advise of environmental site evaluations and archeology reports that are needed for the Project (Environmental issues and archeological services to be an Additional Service). 6) Identify and analyze requirements of governmental authorities having jurisdiction to approve design of the Project including permitting, environmental, historical, construction, and geotechnical issues; meet and coordinate with pertinent agencies such as RTA, CCISD, and TDLR. 7) Confer, discuss, and meet with City operating department(s) and Engineering Services staff to produce a cohesive, well- defined proposed scope of design, probable cost estimates(s) and design alternatives. 8) Provide a letter stating that the A/E and Sub - consultant Engineers have checked and reviewed the Engineering Letter Report prior to submission. City staff will provide one set only of the following information (as applicable): a. Record drawings, record information of existing facilities, and utilities (as available from City Engineering files). b. The preliminary budget, specifying the funds available for construction. c. Aerial photography for the Project area. d. Through separate contract, related GIS mapping for existing facilities. e. A copy of existing studies and plans. (as available from City Engineering files). f. Field location of existing city utilities. (AIE to coordinate with City Operating Department.) g. Provide applicable Master Plans. 2. Design Phase. Upon approval of the preliminary phase, designated by receiving authorization to proceed, the NE will: a. Study, verify, and implement Engineering Letter Report recommendations including construction sequencing, connections to the existing facilities, and restoration of property and incorporate these plans into the construction plans. Development of the construction sequencing will be coordinated with the City Operating Department(s) and Engineering Services staff. b. Prepare one set of Construction Bid and Contract Documents in City format (using City Standards as applicable), including Contract agreement forms, general conditions and supplemental conditions, notice to bidders, instruction to bidders, insurance, bond requirements, and preparation of other contract and bid related items; specifications and drawings to fix and describe, for one bid, the size and character of the entire Project; description of materials to be utilized; and such other essentials as may be necessary for construction and cost analysis. EXHIBIT "A" Page 2 of 11 c. Provide assistance identify testing, handling and disposal of any hazardous materials and/or contaminated soils that may be discovered during construction (to be included under additional services). d. Prepare final quantities and estimates of probable costs with the recommended construction schedule. The construction schedule will provide a phased approach to track progress and payments. e. Furnish one (1) copy of the pre -final plans and bid documents to the City staff for review and approval purposes with estimates of probable construction costs. Identify distribution list for plans and bid documents to all affected utilities including City and all other affected entities. Required with the pre -final plans is a "Plan Executive Summary" which will identify and summarize the project by distinguishing key elements such as: • Pipe Size or Building Size • Pipe Material, etc. • Why one material is selected over another • Pluses of selections • ROW requirements and why • Permit requirements and why • Easement requirements and why • Embedment type and why • Constructability, etc. • Specific requirements of the City • Standard specifications • Non - standard specifications • Any unique requirements • Cost, alternatives, etc. • Owner permit requirements and status f. Assimilate all review comments, modifications, additions /deletions and proceed to next phase, upon Notice to Proceed. g. Provide Quality Assurance /Quality Control (QA/QC) measures to ensure that submittal of the pre -final and final complete plans and complete bid documents with specifications accurately reflect the percent completion designated and do not necessitate an excessive amount of revision and correction by City staff. The Consultant AIE and Sub - consultant A/E shall submit a letter declaring that all engineering disciplines of all phases of the submittals have been checked, reviewed, and are complete prior to submission, and include signature of all disciplines including but not limited to structural, civil, mechanical, electrical, etc. h. Provide construction traffic controls including a Traffic Control Plan, illumination, markings and striping, signalization, as directed by the City Traffic Engineering Department. i. Upon approval by the Director of Engineering Services, provide one (1) set (hard copy and electronic) of final plans and contract documents suitable for reproduction (In City Format) and said bid documents henceforth become the sole property and ownership of the City of Corpus Christi. j. The City agrees that any modifications of the submitted final plans (for other uses by the City) will be evidenced on the plans and be signed and sealed by a professional engineer prior to re -use of modified plans. EXHIBIT "A" Page 3 of 11 k. Prepare and submit monthly status reports with action items developed from monthly progress and review meetings. I. Provide Storm Water Best Management Practices Recommendations (Contractor will be required to provide a Storm Water Pollution Prevention Plan). The City staff will: a. Designate an individual to have responsibility, authority, and control for coordinating activities for the professional services contract awarded. b. Provide the budget for the Project specifying the funds available for the construction contract. c. Provide the City's standard specifications, standard detail sheets, standard and special provisions, and forms for required bid documents. 3. Bid Phase. The NE will: a. Participate in the pre -bid conference and provide a recommended agenda for critical construction activities and elements impacted the project. b. Assist the City in solicitation of bids by identification of prospective bidders, and review of bids by solicited interests. c. Review all pre -bid questions and submissions concerning the bid documents and prepare, in the City's format, for the Engineering Services' approval, any addenda or other revisions necessary to inform contractors of approved changes prior to bidding. d. Attend bid opening, analyze bids, evaluate, prepare bid tabulation, and make recommendation concerning award of the contract. e. In the event the lowest responsible bidder's bid exceeds the project budget as revised by the Engineering Services in accordance with the AIE's design phase estimate required above, the A/E will, at its expense, confer with City staff and make such revisions to the bid documents as the City staff deems necessary to re- advertise that particular portion of the Project for bids. The City staff will: a. Arrange end pay for printing of all documents and addenda to be distributed to prospective bidders. b. Advertise the Project for bidding, maintain the list of prospective bidders, receive and process deposits for all bid documents, issue (with the assistance of the A /E) any addenda, prepare and supply bid tabulation forms, and conduct bid opening. c. Receive the Engineer's recommendation concerning bid evaluation and recommendation and prepare agenda materials for the City Council concerning bid awards. d. Prepare, review and provide copies of the contract for execution between the City and the contractor. 4. Construction Phase. The A/E will perform contract administration to include the following: a. Participate in pre - construction meeting conference and provide a recommended agenda for critical construction activities and elements impacted the project. b. Review for conformance to contract documents, shop and working drawings, materials and other submittals. EXHIBIT "A" Page 4 of 11 c. Review field and laboratory tests. d. Provide interpretations and clarifications of the contract documents for the contractor and authorize required changes, which do not affect the contractor's price and are not contrary to the general interest of the City under the contract. e. Make regular visits to the site of the Project to confer with the City project inspector and contractor to observe the general progress and quality of work, and to determine, in general, if the work is being done in accordance with the contract documents. This will not be confused with the project representative observation . or continuous monitoring of the progress of construction. f. Assist the City in the preparation of change orders as authorized. g. Make final inspection with City staff and provide the City with a Certificate of Completion for the project. h. Review construction "red -line" drawings, prepare record drawings of the Project as constructed (from the "red -line" drawings, inspection, and the contractor provided plans) and deliver to the Engineering Services a reproducible set and electronic file (AutoCAD r.14 or later) of the record drawings. All drawings will be CADD drawn using dwg format in AutoCAD, and graphics data will be in dxf format with each layer being provided in a separate file. Attribute data will be provided in ASCII format in tabular form. All electronic data will be compatible with the City GIS system. The City staff will: a. Designate an individual to have responsibility, authority, and control for coordinating activities for the construction contract awarded. b. Prepare applications /estimates for payments to contractor. c. Conduct the final acceptance inspection with the Engineer. d. Prepare change orders as required. e. Provide construction observation services unless these additional services are authorized for the consultant to perform. B. Additional Services (ALLOWANCE) This section defines the scope (and ALLOWANCE) for compensation for additional services that may be included as part of this contract, but the A/E will not begin work on this section without specific written approval by the Director of Engineering Services. Fees for Additional Services are an allowance for potential services to be provided and will be negotiated by the Director of Engineering Services as required. The A/E will, with written authorization by the Director of Engineering Services, do the following: 1. Permitting. Furnish the City all engineering data and documentation necessary for all required permits. The A/E will prepare this documentation for all required signatures. The A/E will prepare and submit all permits as applicable to the appropriate local, state, and federal authorities, including, but not limited to: a. Union Pacific Railroad, Missouri Pacific Railroad, or any other railroad operating in the area b. TxDOT Permits /Amendments c. Wetlands Delineation and Permit d. Temporary Discharge Permit e. NPDES Permit /Amendments f. Texas Commission of Environmental Quality (TCEQ) Permits /Amendments EXHIBIT "A" Page 5 of 11 g. Nueces County h. Texas Historical Commission (THC) i. U.S. Fish and Wildlife Service (USFWS) j. U.S. Army Corps of Engineers (USACE) k, United States Environmental Protection Agency (USEPA) I. Texas Department of License and Regulation (TDLR ) 2. Right -of -Way (ROW) Acquisition Survey. The A/E will review existing ROW and easements to ascertain any conflicts and provide field ROW surveys and submit ROW parcel drawings and descriptions for the City's use in the acquisition process. All work must comply with Category 1 -A, Condition I specifications of the Texas Society of Professional Surveyors' Manual of Practice for Land Surveying in the State of Texas, Ninth Edition. All work must be tied to and conform to the City's Global Positioning System (GPS) control network and comply with all TxDOT requirements as applicable. A/E Consultant will be required to perform all necessary deed research. The City will provide title commitments for each parcel to be acquired and will be used as the basis for the A/E's deed research. PLATTING IS NOT INCLUDED. 3. Topographic Survey. Provide field surveys, as required for design including the necessary control points, coordinates and elevations of points (as required for the aerial mapping of the Project area - aerial photography to be provided by City). Establish base survey controls for line and elevation staking (not detailed setting of lines and grades for specific structures or facilities). All work must be tied to and conform to the City's Global Positioning System (GPS) control network and comply with Category 6, Condition 1 specifications of the Texas Society of Professional Surveyors' Manual of Practice for Land Surveying in the State of Texas, Ninth Edition. Include reference to a minimum of two (2) found boundary monuments from the project area. 4. Subsurface Utility Engineering (S.U.E.). Upon receiving authorization from the City to proceed, conduct hydro - excavation, pneumatic excavation, or probing, with or without water jet assistance, to identify underground utilities of record. The process will conform to subsurface utility engineering in accordance with ASCE Standard C- 1, 38 -02. 5. Public Meeting. Assist City in preparing exhibits and conducting three (3) public meetings. 6. Environmental Issues. a. Provide environmental site evaluations and Archeology Reports that are needed for the Project. b. Identify and develop a scope of work for any testing, handling and disposal of hazardous materials and/or contaminated soils that may be discovered during construction. 7. Construction Observation Services (Duration TBD). 1. Provide a project representative (PR) to provide periodic construction observation. EXHIBIT "A" Page 6 of 11 A. Through such additional observations of Contractor's work in progress and field checks of materials and equipment by the PR and assistants, the A/E shall endeavor to provide further protection for the CITY against defects and deficiencies in the Work. B. The duties and responsibilities of the PR are described as follows: 1. General: PR will act as directed by and under the supervision of A/E, and will confer with A/E regarding PR's actions. PR's dealings in matters pertaining to the Contractor's work in progress shall in general be with A/E and Contractor, keeping the CITY advised as necessary. 2. Conference and Meetings: Attend meetings with Contractor, such as pre - construction conferences, progress meetings, job conferences and other project - related meetings as required by the City, and prepare and circulate copies of minutes thereof. 3, Liaison: A. Serve as liaison with Contractor, working principally through Contractor's superintendent and assist in understanding the intent of the Contract Documents. B. PR shall communicate with CITY with the knowledge of and under the direction of A/E 4. Interpretation of Contract Documents: Report when clarifications and interpretations of the Contract Documents are needed and transmit to Contractor clarifications and interpretations as issued. 5. Shop Drawings and Samples: A. Receive Samples, which are furnished at the Site by Contractor, and notify of availability of Samples for examination. B. Record date of receipt of Samples and approved Shop Drawings. C. Advise Contractor of the commencement of any portion of the Work requiring a Shop Drawing or Sample submittal for which PR believes that the submittal has not been approved. 6. Review of Work and Rejection of Defective Work: A. Conduct on -Site observations of Contractor's work in progress to assist A/E in determining if the Work is in general proceeding in accordance with the Contract Documents. B. Report whenever PR believes that any part of Contractor's work in progress will not produce a completed Project that conforms to the Contract Documents or will prejudice the integrity of the design concept of the completed Project, or has been damaged, or does not meet the requirements of any inspection, test or approval required to be made; and advise City and A/E of that part of work in progress that PR believes should be corrected or rejected or should be uncovered for observation, or requires special testing, inspection or approval. C. Observe whether Contractor has arranged for inspections required by Laws and Regulations, including but not limited to those to be performed by public agencies having jurisdiction over the Work. 7. Records: A. Maintain orderly files for correspondence, reports of job conferences, reproductions of original Contract Documents including all Change Orders, Field Orders, Work Change Directives, Addenda, additional Drawings issued subsequent to the Contract, NE's clarifications and interpretations of the EXHIBIT "A" Page 7 of 11 Contract Documents, progress reports, Shop Drawing and Sample submittals received from and delivered to Contractor, and other Project related documents. B. Prepare a daily report utilizing approved City format, recording Contractor's hours on the Site, weather conditions, data relative to questions of Change Orders, Field Orders, Work Change Directives, or changed conditions, Site visitors, daily activities, decisions, observations in general, and specific observations in more detail as in the case of observing test procedures; and send copies to A/E and the City. 8. Reports: A. Furnish periodic reports as required of progress of the Work and of Contractor's compliance with the progress schedule and schedule of Shop Drawing and Sample submittals. B. Report immediately to the CITY and A/E the occurrence of any Site accidents, any Hazardous Environmental Conditions, emergencies, or acts of God endangering the Work, and property damaged by fire or other causes. C. Provide project photo report on CD -ROM at the rate of a minimum of two photographs per day, including an adequate amount of photograph documentation of utility conflicts. 9. Completion: A. Before the issue of Certificate of Completion, submit to Contractor a list of observed items requiring completion or correction. B. Participate in a final inspection in the company of A/E, the CITY, and Contractor and prepare a final list of items to be completed or corrected. C. Observe whether all items on final list have been completed or corrected and make recommendations concerning acceptance and issuance of the Notice of Acceptability of the Work. 8. Warranty Phase. Provide a maintenance guaranty inspection toward the end of the one -year period after acceptance of the Project. Note defects requiring contractor action to maintain, repair, fix, restore, patch, or replace improvement under the maintenance guaranty terms of the contract. Document the condition and prepare a report for the City staff of the locations and conditions requiring action, with its recommendation for the method or action to best correct defective conditions and submit to City Staff. Complete the inspection and prepare the report no later than sixty (60) days prior to the end of the maintenance guaranty period. 9. Investigation Project includes project management, research and review of record drawings and information, topographic and bathymetric survey, geotechnical and concrete testing and analysis, void survey, timber pile evaluation, bulkhead and tie back evaluation, storm sewer condition observations, and underwater storm sewer outfall observations of the barge dock and rear sloped seawall from the north end of the stepped seawall where it meets the south end of the barge dock, to the north end of the barge dock where it meets the Art Museum. As an option, the City may also elect to include a wave loading analysis, and structural stability analysis to determine the structural condition of the barge dock and seawall after the initial investigation. The investigation and analysis will estimate the fitness of the overall structure to perform as originally designed, per current engineering standards and FEMA approved modeling methods, from wave height data developed by URS for the recently published Draft FIRM Map 320 G update. 10. Definition Project. The Barge Dock Definition includes meetings with Barge Dock EXHIBIT "A" Page 8 of 11 Stakeholders and City Staff, and engineering analysis to determine if the Barge Dock should continue to function as designed, or if additional uses, or a different use or uses are needed. The result of this project would determine what, if any, improvements are needed, what those improvements would look like, and a rough order of magnitude of improvement costs. The first step would be meetings with Stakeholders, in addition to applicable City departments, to develop a project definition. These Stakeholders would likely include the Type A Board, Port of Corpus Christi, RTA, American Bank Center, Downtown Development District, Art Museum and others as determined by City Staff. These meetings would identify the wants and needs of the various groups. Using that information a written project program with conceptual drawings would be developed for presentation to the Stakeholders for review and comment. The plan would then be presented to Council for concept approval. The concept and drawings would then be refined based on Stakeholder and Council comments, a preliminary opinion of probable costs would be developed, and a final presentation made to Council for approval and authorization to proceed with design. 11. Provide the services above authorized in addition to those items shown on Exhibit "A -1" Task List. 2. SCHEDULE ACTIVITY DATE Barge Dock Elevation Project #3426 Begin Investigation Project Upon Receipt of Notice to Proceed Submit Investigation Report Six (6) Months from Completion of All Forensic Tests Begin Definition Project Upon Receipt of Notice to Proceed Submit Definition Report Six (6) Months from Notice to Proceed Begin Design Project TBD Submit Final PS &E TBD Pre -Bid Conference TBD Project Bid Date TBD Begin Construction TBD Complete Construction TBD 3. FEES A. Fee for Basic Services. The City will pay the A/E a fixed fee for providing for all "Basic Services" authorized as per the table below. The fees for Basic Services will not exceed those identified and will be full and total compensation for all services outlined in Section I.A.1 -4 above, and for all expenses incurred in performing these services. For services provided in Section I.A.1 -4, A/E will submit monthly statements for basic services rendered. In Section I.A.1 -3, the statement will be based upon A/E's estimate (and City Concurrence) of the proportion of the total services actually completed at the time of billing. For services provided in Section I.A.4, the statement will be pro -rated based EXHIBIT "A" Page 9 of 11 upon the estimated construction duration shown in Section 1.B.7.above. Services required beyond the estimated construction duration are subject to additional fees to be determined. City will make prompt monthly payments in response to NE's monthly statements. B. Fee for Additional Services. For services authorized by the Director of Engineering Services under Section I.B. "Additional Services" the City will pay the AIE a not -to- exceed fee as per the table below: Summary of Fees Barge Dock Project No. 3426 Fee for Basic Services 1. Preliminary Phase TBD . 2. Design Phase TBD 3. Bid Phase TBD 4. Construction Phase TBD Subtotal Basic Services Fees TBD Fee for Additional Services (Allowance) 1. Permitting a. USAGE Permit TBD b. GLO Easement TBD c. LSLS Survey TBD d. TDLR Registration TBD e. Other TBD Subtotal Fee for Permitting TBD 2. ROW Acquisition Survey TBD 3. Topographic Survey TBD 4. Subsurface Utility Engineering (SUE) TBD 5. Public Meetings (3 Meetings) TBD 6. Environmental Issues TBD 7. Construction Observation Services (Duration TBD) TBD 8. Warranty Phase TBD 9. Project Investigation a. Project Management (Authorized) $13,620 $12,180^ b. Topographic and Bathymetric Surveys (Authorized) c. Geotechnical and Concrete Testing (Authorized) $ 7,210 d. Seawall Void Survey (Authorized) $15,930 e. Timber Pile Assessment (Authorized) $33,370 f. Bulkhead and Tie Back Assessment (Authorized) $31,690 g. Storm Sewer Cleaning and Video (Authorized) $ 5,920 - h. Storm Water Outfall UIW Inspection (Authorized) $ 8,080' EXHIBIT "A" Page 10 of 11 i. Wave Loading Analysis $73,780 j. Structural Stability Analysis $28,260 k. Comprehensive Report of Findings (Authorized) $18,560 $248,600- Subtotal Fee for Project Investigation 10. Project Definition a. Initial Meeting with Staff $990 b. Develop Initial Project Program $11,180 c. Initial Meeting with Stakeholders $11,760 d. Revise Program and Meet with Staff $6,860 e. Revise and Prepare Concept Drawings and ROM $12,040 f. Meet with Staff to Review Concept and ROM $1,440 g. Present Concept and ROM to Stakeholders $4,240 h. Revise Concept and ROM $3,740 i. Council Presentation $3,100 j. Final Concept, ROM and Report $5,920 Subtotal for Project Definition $61,270 Subtotal Additional Services (Allowance) $309,870 $309,870- Total Fee EXHIBIT "A" Page 11 of 11 EXHIBIT A -1 CITY OF CORPUS CHRISTI Barge Dock Improvements: Project #3426 TASK LIST GENERAL The Barge Dock Improvements initially includes only two Additional Service Components, but no Basic Services; (1) Barge Dock Investigation to determine the existing condition and fitness for continued use as originally designed, and (2) Barge Dock Definition to determine if the Barge Dock should continue to' function as designed, or if additional uses, or a different use or uses are needed. The Barge Dock Improvements may lead to a Design Project requiring Basic Serves and other Additional Services for design of improvements as needed to meet the requirements for the desired barge dock function determined as a result of the Barge Dock Definition. A scope and budget has not yet been established and will be included by addendum, if approved and funded. Monthly progress reports shall be prepared for submittal to the City and submitted by the last Wednesday of each month. BASIC SERVICES TASK LIST Preliminary Phase Engineering Letter Report Preparation of the Engineering Letter Report will be in two parts; a Preliminary Engineering Letter Report and Final Engineering Letter Report. The Preliminary Engineering Letter Report will be used as the basis for all regulatory permitting, easement applications and ROW acquisitions, if necessary. After all permits and easements have been coordinated with the regulatory agencies, the Preliminary Engineering Letter Report will be revised to comply with the permit and easement requirements and the Final Engineering Letter Report will be issued. The Final Engineering Letter Report will be used as the basis for final design and ROW acquisition, if necessary. A. Prepare Preliminary Engineering Letter Report 1. Attend a project kick off meeting and prepare meeting minutes. 2. Collect data needed for the Preliminary Engineering Letter Report: • ROW Information of Record from City; EXHIBIT "A -1" Page. 1 of 10 • Utility Information of Record from City; • Construction Plans of Record from City; • Conventional Surveys (Additional Services); • S.U.E. Surveys (Additional Services); • Environmental Surveys, if necessary (Additional Services); • Geotechnical Investigation (Direct Contract with City). 3. Review and analyze data. 4. Prepare a Preliminary Engineering Letter Report including: a. Data collected; b. Analysis of the data; c. Preliminary design calculations; d. Preliminary plans and sections; e. Preliminary landscaping and architectural features plan; f. Lighting and electrical upgrades plan; g. Storm water system upgrades/realignments; h. Barge Dock fill and structural upgrade alternatives; i. Water and wastewater utility upgrades/realignments; j. Permit requirements, and k. Preliminary opinion of probable costs. The Preliminary Engineering Letter Report will include a recommended plan of action within the project budget. 5. Submit one (1) hard copy and one (1) electronic copy of the Preliminary Engineering Letter Report. 6. Meet and review Preliminary Engineering Letter Report with City Staff. 7. Obtain approval to prepare the Final Engineering Letter Report. 8. Permit Applications (Additional Services). 9. Services do not include EA or EIS. 1 d. Submit one (1) hard copy and one (1) electronic copy of all applications 11. Meet and review Applications with City Staff. 12. Revise Applications per City Staff comments and submit Applications to the appropriate Regulatory Agency. 13. Respond to comments and meet with Regulatory and Resource Agencies as needed. EXHIBIT "A -1" Page 2 of 10 14. Meet with City Staff to review final permit and easement requirements. 15.Obtain Approval to prepare the Final Engineering Letter Report. B. Prepare Final Engineering Letter Report 1. Revise the Preliminary Engineering Letter Report per final permit and easement requirements. The Final Engineering Letter Report will become the basis for final design. 2. Submit one (1) hard copy and one (1) electronic copy of the Final Engineering Letter Report and Preliminary Drawings. 3. Meet and review Final Engineering Letter Report and Preliminary Drawings with City Staff. 4. Obtain approval to proceed with the Design Phase. Design Phase A. Develop construction drawings in English units in 22" x 34 B. Retain the services of an ADA Specialist subconsultant (Additional Services). C. Prepare opinion of probable construction costs including contingency amounts. D. Prepare Contract Documents with City standard contracts and specifications. E. Provide Quality Assurance /Quality Control (QA/QC) pre -final review and prepare submittal for City's review depicting pre -final development of the contract documents and construction drawings. F. Address comments received from the City from the pre -final submittal. G. Provide Quality Assurance /Quality Control (QA/QC) final review and submit one (1) hard copy and one (1) electronic copy of the final contract documents and construction drawings to the City for bidding process. H. Update the Opinion of Probable Costs. EXHIBIT "A-1" Page 3 of 10 Bid Phase Provide Bid Phase Services in accordance with Exhibit 'A' of the Contract for Professional Services. Construction Phase Provide Construction Phase Services in accordance with Exhibit 'A' of the Contract for Professional Services. ADDITIONAL SERVICES (Subject to Authorization) 1. PERMITTING. TBD 2. ROW ACQUISITION SURVEY. TBD. 3, TOPOGRAPHIC SURVEY. TBD Initial Surveys will be done as part of the Barge Dock Investigation. 4, S.U.E. Conduct hydro - excavation, pneumatic excavation, or probing, with or without water jet assistance, to identify underground utilities shown on record drawings, and/or identified by surface evidence discovered with the topographic survey. The process will conform to subsurface utility engineering in accordance with ASCE Standard C -I, 38 -02, and shall be in accordance with Section 1.e of Basic Services in Exhibit "A. Add findings to existing conditions drawing. 5. PUBLIC MEETING (maximum of 3 Meetings) • Prepare Exhibits and Handouts • Attend and Participate (City Staff will lead the meeting) • Prepare Meeting Minutes 6. ENVIRONMENTAL SURVEY — TBD 7. CONSTRUCTION OBSERVATION (Duration TBD) • Provide construction observation services described below and in Exhibit 'A' Section 1.B.7, as authorized by the City. • Conduct daily site visits to the project site during construction. • Prepare daily reports and coordinate site visits with RVE office staff. • Coordinate with City staff during construction. EXHIBIT "A -1" Page 4 of 10 • Coordinate construction activities with materials testing lab. WARRANTY PHASE As described in Exhibit 'A' Section 1.B.8. 9. BARGE DOCK INVESTIGATION The Barge Dock Investigation includes project management, research and review of record drawings and information, topographic and bathymetric survey, geotechnical and concrete testing and analysis, void survey, timber pile evaluation, bulkhead and tie back evaluation, storm sewer condition observations, and underwater storm sewer outfall observations of the barge dock and rear sloped seawall from the north end of the stepped seawall where it meets the south end of the barge dock, to the north end of the barge dock where it meets the Art Museum. As an option, the City may also elect to include a wave loading analysis, and structural stability analysis to determine the structural condition of the barge dock and seawall after the initial investigation. The investigation and analysis will estimate the fitness of the overall structure to perform as originally designed, per current engineering standards and FEMA approved modeling methods, from wave height data developed by URS for the recently published Draft FIRM Map 320 G update. Tasks Performed By Consultant: Project Management Develop Project Objective Identify Primary Tasks Prepare Scope, Schedule and Budget Overall Coordination and Meetings with City Staff Topographic and Hydrographic Survey Dock, Seawall, Ramp, and Sidewalk on Land Extend Beyond Sunfish Island Breakwater on Water Show Locations of Geotechnical Borings, Grab Samples and Other Tests Geotchnica! and Concrete Testing and Analysis Field and office investigation to determine locations of tests Recommend concrete sampling intervals and frequencies Recommend concrete sampling techniques Prepare plan map of testing locations with narrative Assist City in contracting with testing firm Coordinate activities of testing firm Review and assess testing results EXHIBIT "A -1" Page 5 of 10 Seawall Void Survey Develop Drilling Program Drill Concrete and Joints at Various Locations Measure Depth of Voids with Probe Fill Drill Holes Report Timber Pile Inspection Field and Office Investigation to Determine Test Locations Prepare Exhibits for Inspection Locations Prepare Specifications for Concrete Removal Prepare Specifications for Trench Safety Prepare Specifications for Determining Pile Length Develop Inspection Program /JOC Contract Documents Assist City with JOC Coordination Prepare Specifications for Repair of Inspection Locations Perform Visual Inspection and Testing Prepare Drawings of Inspection and Test Results Prepare Report of Findings Bulkhead and Tie Back Inspection Field and Office Investigation to Determine Test Locations Prepare Exhibits for Inspection Locations Prepare Specifications for Removal of Dock Panels Prepare Specifications for Materials Testing Prepare JOC Documents Assist City with JOC Coordination Prepare RFP for Geotechnical and Testing Work Assist City with Geotechnical and Testing Coordination Perform Visual and Physical Measurements Prepare Drawings of Inspection and Testing Results Report Storm Sewer Inspection Field and Office Investigation to Determine Scope of Inspection Prepare Exhibits for RFP Prepare Specifications for Cleaning and Inspection Assist City with Coordination of Inspection Firm Review Inspection Results Underwater Inspection (Storm Outfalls Only) Develop Inspection Program Underwater Inspection Report EXHIBIT "A_1 "s Page 6 of 10 Wave Load Analysis (Option if Elected by City) Wave modeling will be performed to approximate wave conditions at the project site under exposure from a storm having pre - defined still water level ( "surge ") and wind speed associated with a 100 -year return period storm. The modeling will be performed in two phases. The first phase will calculate wave generation and transformation over a larger area to develop input for a second, smaller -scale (Phase 2) model that will calculate interaction of waves with the existing and proposed improvements. In both modeling phases, the surge will be based on the FEMA Flood Insurance Study (FIS) for the City of Corpus Christi (1992 revision) and the wind speed will be based on Vickery et al. (2000) as developed for the ASCE -7 wind codes. Results from the Phase 2 model will be utilized to calculate associated wave loads on vertical and sloped walls. Analysis will model waves and provide estimates of wave pressures, overtopping, and toe scour for different combinations of storm surge and wind speed.. Activities related to FEMA zone reclassification, adjacent impact analysis, structural "certification," etc. would not be not included; however, the results could be applied to FEMA studies if needed. Structural Stability Analysis (Option if Elected By City) Based on the data and information collected during the field investigation, an analysis will be performed to estimate the capacity of the existing structure. This will include the upper wall (timber support piling, concrete caps and revetment paving) and the lower barge dock bulkhead (wall, tie -backs and anchor wall). Engineering opinions regarding the ability and feasibility to repair, upgrade or replace will be provided. Conceptual repair options or opinions of costs will not be generated in this phase of the work. Comprehensive Report Prepare a comprehensive report of methods and findings. Report will include appendices with all supporting reports, field data, observations and calculations. Tasks Coordinated By Consultant and Performed By City: Geotchnical and Concrete Testing and Analysis Soil Borings Landward and Seaward Bottom Sample Sieve Analysis (for Wave Analysis) Pile Design Data /Recommendations Paving Design Data /Recommendations Concrete Cores Compression Testing Concrete Petrographic Analysis EXHIBIT "A_l" Page 7 of 10 Report of Finding and Recommendations Timber Pile Inspection Remove Sidewalk /Seawall as Indicated By Void Survey Install "Trench" Safety Perform Pile Removal to Determine Length if Needed Perform Pile Soundings to Determine Length if Needed Perform Seawall Component Testing if Needed Fill Voids and Repair Sidewalk /Seawall Bulkhead and Tie Back Inspection Remove Sidewalk and Fill Under Seawall For Timber Pile Inspection Replace Fill and Sidewalk After Inspections Remove Paving and Dock Panels for Bulkhead and Tie Back Inspection Test Bulkhead and Tie Back Components if Needed Replace Paving Storm Sewer Inspection Clean Storm Sewer Pipes Camera Inspection Report of Findings 10. BARGE DOCK DEFINITION The Barge Dock Definition includes meetings with Barge Dock Stakeholders and City Staff, and engineering analysis to determine if the Barge Dock should continue to function as designed, or if additional uses, or a different use or uses are needed. The result of this project would determine what, if any, improvements are needed, what those improvements would look like, and a rough order of magnitude of improvement costs. The first step would be meetings with Stakeholders, in addition to applicable City departments, to develop a project definition. These Stakeholders would likely include the Type A Board, Port of Corpus Christi, RTA, American Bank Center, Downtown Development District, Art Museum and others as determined by City Staff. These meetings would identify the wants and needs of the various groups. Using that information a written project program with conceptual drawings would be developed for presentation to the Stakeholders for review and comment. The plan would then be presented to Council for concept approval. The concept and drawings would finally be refined based on Stakeholder and Council comments, a rough order of magnitude of costs would be developed, and a final presentation made to Council for approval and authorization to proceed with design. Tasks Performed By Consultant EXHIBIT "A -1" Page 8 of 10 Initial Meeting with City Staff: Conduct one meeting with appropriate City Staff members, as determined by the Director of Engineering Services. Develop Initial Project Program: Develop an initial written project program and concept drawing based on City Staff input. The initial program and concept drawing will be used as exhibits for subsequent meetings with other Stakeholders. Meetings with Stakeholders: Conduct up to three separate meetings with Stakeholders, as determined by the Director of Engineering Services. The meeting attendees, schedule, invitations, and venues will be provided by the City. RVE will provide a mounted concept drawing exhibit and original drawing and project program hand outs. City will make copies of the hand outs for the meeting attendees. RVE, Inc. will conduct the meeting and prepare meeting minutes of each meeting. Revise Project Program and Meet With Staff: Using the information gathered at the Stakeholder meetings, RVE will revise the written project program and meet with City Staff to review the revised program. Staff will direct RVE as to which items to include and exclude from consideration in the project program. RVE will revise the program per Staff comments. Develop Project Concept and ROM and Meet With Staff: Using the revised program, RVE will prepare a revised project concept drawing(s) and Rough Order of Magnitude (ROM) project costs. RVE will meet with City Staff to review the concept drawing(s), program and ROM. Stakeholder Presentation: Conduct one joint meeting with all Stakeholders to present the concept drawing(s), program and ROM. The meeting attendees, schedule, invitations, and venue will be provided by the City. RVE will provide a mounted concept drawing exhibit and concept drawing(s), project program and ROM for hand outs. City will make copies of the hand outs for the meeting attendees. RVE, Inc. will conduct the meeting and prepare meeting minutes of the meeting. Revise Project Concept and ROM: City Staff will direct RVE as to which Stakeholder comments to include in a final project program for Council consideration. RVE will prepare a revised program, project concept drawing(s) and ROM. RVE will meet with City Staff to review the concept drawing(s), program and ROM. Council Presentation: RVE will present the program, concept drawing(s) and ROM to the Council. RVE will include Stakeholder comments in the presentation. EXHIBIT "A-1" Page 9 of 10 Final Project Concept, Rough Order of Magnitude of Costs, and Report: RVE will prepare a final program, project concept drawing(s) and ROM for inclusion in a final report. RVE will meet with City Staff to review the final report, If Council decides to proceed with the project, RVE will work with the Director of Engineering Services to develop a scope and engineering budget for the required Design Project services. Provided By City: Attendee list and invitations to Stakeholder meetings Stakeholder meeting venue Stakeholder meeting hand outs Program Development Direction EXHIBIT ,,A -1 "" Page 10 of 10 EXHIBIT "B" MANDATORY INSURANCE REQUIREMENTS & INDEMNIFICATION FOR A/E PROFESSIONAL SERVICES /CONSULTANT SERVICES (Revised October 2010) A. Consultant must not commence work under this agreement until all insurance required herein has been obtained and such insurance has been approved by the City. The Consultant must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been obtained. B. Consultant must furnish to the City's Risk Manager, two (2) copies of Certificates of Insurance, showing the following minimum coverages by insurance company(s) acceptable to the City's Risk Manager. The City must be named as an additional insured for all liability policies, and a blanket waiver of subrogation is required on all applicable policies. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -Day Written Notice of Cancellation, non - renewal or material change required on all certificates Bodily Injury & Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Broad Form 2. Premises - Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors $1,000,000 COMBINED SINGLE LIMIT AUTOMOBILE LIABILITY to included 1. Owned vehicles 2.. Hired — Non -owned vehicles $1,000,000 COMBINED SINGLE LIMIT PROFESSIONAL LIABILITY including: Coverage provided shall cover all employees, officers, directors and agents 1. Errors and Omissions $1,000,000 per claim 1$2,000,000 aggregate (Defense costs not included in face value of the policy) If claims made policy, retro date must be prior to inception of agreement; have extended reporting period provisions and identify any limitations regarding who is an Insured WORKERS' COMPENSATION EMPLOYERS' LIABILITY Which Complies with the Texas Workers Compensation Act 500,000/500,000/500,000 K,1Enginsering DalaExchange\ClarissaJ\Cily Facilities 13426 - Barge Dock4Professional Services Contrecl \LARGE Al EXHIBIT B.00T 2010_DOCX EXHIBIT `B" Pale 1 of 3 C. In the event of accidents of any kind, Consultant must furnish the Risk Manager with copies of all reports within (10) ten days of accident. D. Consultant must obtain workers' compensation coverage through a licensed insurance company in accordance with Texas law. The contract for coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The coverage provided must be in amounts sufficient to assure that all workers' compensation obligations incurred will be promptly met. E. Consultant's financial integrity is of interest to the City; therefore, subject to Successful Consultant's right to maintain reasonable deductibles in such amounts as are approved by the City, Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A -VI1. F. The City shall be entitled, upon request and without expense, to receive copies of the policies, declarations page and all endorsements thereto as they apply to the limits required by the City, and may require the deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any such policies). Consultant shall be required to comply with any such requests and shall submit a copy of the replacement certificate of insurance to City at the address provided below within 10 days of the requested change. Consultant shall pay any costs incurred resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Risk Management P.O. Box 9277 Corpus Christi, TX 78469 -9277 Fax: (361) 826 -4555 G, Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: i. Name the City and its officers, officials, employees, volunteers, and elected representatives as additional insured by endorsement, as respects operations and activities of, or on behalf of, the named insured performed under contract with the City, with the exception of the workers' compensation and professional liability polices; ii. Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; iii. Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and iv. Provide thirty (30) calendar days advance written notice directly to City of any suspension, cancellation, non - renewal or material change in coverage, and not less than ten (10) calendar days advance written notice for nonpayment of premium. K:SEngineering OataExchenge5ClarissaJSCity Facilitkes53426 - Barge Dock\Protessional Services Con1racl4LARGE AE EXHIBIT B -OCT 2010.DOCX EXHIBIT "B" Page 2 of 3 H, Within five (5) calendar days of a suspension, cancellation, or non- renewal of coverage, Successful Consultant shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. I. In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Consultant to stop work hereunder, and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. J. Nothing herein contained shall be construed as limiting in any way the extent to which Successful Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of the work covered under this agreement. K. It is agreed that Consultant's insurance shall be deemed primary and non - contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. L. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. INDEMNIFICATION AND HOLD HARMLESS Consultant shall indemnify, save harmless and defend the City of Corpus Christi, and its agents, servants, and employees, and each of them against and hold it and them harmless from any and all lawsuits, claims, demands, liabilities, losses and expenses, including court costs and attorneys' fees, for or on account of any injury to any person, or any death at any time resulting from such injury, or any damage to any property, which may arise or which may be alleged to have arisen out of or in connection with the negligent performance of Consultant's services covered by this contract. The foregoing indemnity shall apply except if such injury, death or damage is caused by the sole or concurrent negligence of the City of Corpus Christi, its agents, servants, or employees or any other person indemnified hereunder. EXHIBIT ` Page 3 of 3 K4Engineering DalaExchange4ClarissaJ\Cily Facililies13426 - Barge DocklProfessional Services ConlracllLARGE AE EXHIBIT B -OCT 2010,DOCX • SUPPLIER NUMBER TO URCHAASINO DIVISIIONI Y Ray of CITY OF CORPUS CHRISTI DISCLOSURE OF INTEREST City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City to provide the following information. Every question must be answered. if the question is not applicable, answer with "NA ". See reverse side for Filing Requirements, Certifications and definitions. COMPANY NAME: RVE, Inc. P. O. BOX: STREET ADDRESS: 820 Buffalo Street CITY: Corpus Christi ZIP: 78401 FIRM IS: I. Corporation 4. Association 2, Partnership . 8 S. Other 3. Sole Owner 0 DISCLOSURE QUESTIONS if additional space is necessary, please use the reverse side of this page or attach separate sheet. 1. State the names of each `employee" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name Job Title and City Department (if known) NIA Air 2. State the names of each 'official" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name Title N/A 3. State the names of each "board member" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name Board, Commission or Committee Pat Veteto trees amtenanee Inance ommtttee 4. State the names of each employee or officer of a "consultant" for the City of Corpus Christi who worked on any matter related to the subject of this contract and hes an "ownership interest" constituting VA or more of the ownership in the above named "firm." Name Consultant N/A EXHIBIT "C" Pa•e1 oft 1 EXHIBIT "C"1 FILING REQUIREMENTS If a person who requests official action on a mailer knows taint the requested action will confer an economic benefit on any City official or employee that is distinguishable from the effect that the action will have on members of the public in general or a substantial segment thereof, you shall disclose that fact in a signed writing to the City official. employee or body that has been recttcsted to act in the hotter, unless the interest oI the City official or employee in the matter is apparent. The disclosure shall also be made in a signed writing filed with the City Secretary. !Ethics Ordinance Section 2 -349 td)] CERTIFICATION I certil' y that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld disclosure of any information requested: and that supplemental statements will be promptly submitted to the City of Corpus Christi. 1'exas as changes occur. Certifying Person: Patrick D. Vete .E. mile or Pram) Sigtiniure of Certifying Pergola:, Title: President DEFINITIONS Dale: a. "t3onrd member." A member of nny board. commission. or committee appointed by the City Council of the City of Corpus Christi. Texas. b. -Economic benefit ". An action that is likely to affect an economic interest if it is likely to have an effect on that interest that is distinguishable from its effect on members of the public in general or a substantin] segment thereof. C. "Employee." Any person employed by the City oI' Corpus Christi. Texas either on a full or pan - time basis, but not as an independent contractor. d. "Firm." Any entity operated for economic gain, whether professional, industrial or commercial, and whether established to product or deal with a product or service, including but not limited to. entities operated in the form of sole proprietorship. as self - employed person, partnership. corporation, joint stock company. joint venture. receivership or trust, and entities which for purposes of taxation are trentcd as non - profit organizations. e. "Official.r"fhe Mayor, members of the City Council. City ,Manager. Deputy City Manager, Assistant City Managers, Department and Division I-leads. and Municipal Court Judges of the City of Corpus Christi. Texas. f. "Ownership Interest." Legal or equitable interest, whether actually or constructively held, in a firm. including when such interest is held through an agent. trust. estate, or holding entity. "Constructively held" refers to holdings or control established through voting trusts. proxies, or special terms of venture or partnership agreements." "Consultant." Any person or firm, such as engineers and architects, hired by the City of Corpus Christi for the purpose of professional consultation and recommendation. g. Basic Services: Preliminary Phase Design Phase Bid Phase Report Phase Construction Phase Subtotal Basic Services Additional Services: Permitting Warranty Phase Project Investigation Project Definition Reporting 0 & M Manuals SCADA Subtotal Additional Services Summary of Fees Basic Services Fees Additional Services Fees Total of Fees BARGE DOCK ELEVATION Project No. 3426 Invoice No. 12345 Invoice Date: Total Amount Previous Total Percent Contract Amd No. 1 Amd No. 2 Contract Invoiced Invoice Invoice Complete $0 $0 $0 $0 0 $0 $0 n/a 0 0 0 0 0 0 0 n/a 0 0 0 0 0 0 0 n/a 0 0 0 0 0 0 0 n/a 0 0 0 0 0 0 0 n/a $0 $0 $0 $0 $0 $0 $0 n/a $0 $0 $0 $0 $0 $0 $0 n/a 0 0 0 0 0 0 0 n/a 248,600 0 0 248,600 0 0 0 0% 61,270 0 0 61,270 0 0 0 0% 0 0 0 0 0 0 0 n/a TBD TBD TBD TBD TBD TBD 0 0% TBD TBD TBD TBD TBD TBD TBD 0% $309,870 $0 $0 $309,870 $0 $0 $0 0% $0 $0 $0 $0 $0 $0 $0 n/a 309,870 0 0 309,870 0 0 0 0% $309,870 $0 $0 $309,870 $0 $0 $0 0% Barge Dock Elevation —Phase 1 City Council Presentation August 21, 2012 Project Area Project Schedule Project schedule includes completion of detailed forensic assessment in August 2013 and completion of conceptual planning to determine future function of Barge Dock in March 2014. Future Design Phase schedule pending results of assessment phase. pRojEcT BUDGE FUNDS AVAILABLE: Seawall Systems CIP Fund (Current Authorization) Seawall Systems CIP Fund (Future Authorization) TOTAL AVAILABLE: FUNDS REQUIRED: Construction (Estimated) Contingencies (10%) Consultant Fees: Engineering Consultant (RVE, Inc.) Testing Agreement (Estimated Geotechnical & Forensic Testing) Reimbursements: Contract Administration (Contract Preparation/Award/Admin) Engineering Services (Project Mgt/Constr Mgt/Traffic Mgt) Finance Reimbursements Misc. (Printing, Advertising, etc.) TOTAL ESTIMATED PROJECT BUDGET BALANCE Project Budget $ 350,000 $8,350,000 $8,700,000 $6,750,000 $ 675,000 $ 309,870 $ 100,000 $ 168,750 $ 168,750 $ 101,250 $ 33,750 $8,307,370 $ 392,630.00 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: August 28, 2012 TO: Ronald L. Olson, City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP ©cctexas.com (361) 826 -3227 Ordinance Adopting the Fiscal Year 2013 Property Tax Rate CAPTION: Ordinance setting a property tax rate of $0.570557 per $100 valuation which is effectively a 1.40% increase over the effective tax rate; and declaring an emergency. PURPOSE: The fiscal year 2012 -2013 operating budget includes a tax rate of $0.570557 in the determination of the ad valorem tax revenue for fiscal year 2012 -2013. Although this is the same property tax rate as the prior year, Section 26.05(b) of the Property Tax Code mandates that since this rate exceeds the effective tax rate, the wording in the caption above must be utilized. BACKGROUND AND FINDINGS: If a proposed property tax rate exceeds the effective tax rate, the Property Tax Code requires that the governing body must vote to place a proposal to adopt the tax rate on the agenda of a future meeting as an action item. This vote must be recorded. If the motion passes, then the governing body must schedule two public hearings on the proposal. This vote was taken on July 31, 2012. Subsequently, two public hearings were held — one on August 14, 2012, and the second on August 21, 2012. This agenda item is required to set the property tax rate for fiscal year 2012 -2013. Although the proposed property tax rate of $0.570557 per $100 valuation is the same tax rate as last year's rate, the tax rate exceeds the effective tax rate of $0.562666, and so specific wording is required in the motion to adopt the tax rate, as well as in the ordinance. It should be noted that two different percentage "increases" are noted in the ordinance. The first amount listed in the caption represents the difference between the total proposed tax rate ($0.570557) and the total effective tax rate ($0.562666). The second amount listed in the body of the ordinance represents the change in the maintenance and operations portion of the proposed tax rate ($0.380339) to the maintenance and operations portion of the effective tax rate ($0.371457). This, again, is the specific wording outlined in the Property Tax Code. However, the proposed tax rate of $0.570557 per $100 valuation is the same tax rate as the prior year's rate. ALTERNATIVES: n/a OTHER CONSIDERATIONS: n/a FINANCIAL IMPACT: ❑Not Applicable ❑ Operating Expense X Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budget - - $ 77,518,178 $ 77,518,178 Encumbered /Expended amount of (date) - - - - This item - $ 77,518,178 $ 77,518,178 BALANCE - - $ - $ - FUND(S): General Fund $51,282,246 Debt Service Fund $26,235,932 COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the motions as presented. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON-EMERGENCY: Staff is requesting an emergency reading due to the fact that Section 26.06(e) of the Property Tax Code specifies that the meeting to vote on the tax "increase" may not be earlier than the third day or later than the 14th day after the date of the second public hearing. Since the second public hearing was held on August 21st and the 14th day after that date is September 4th when there is no Council meeting scheduled, it is necessary to take action on this item on August 28th DEPARTMENTAL CLEARANCES: • Legal Department LIST OF SUPPORTING DOCUMENTS: cc: • Ordinance Lisa Aguilar, Assistant City Attorney Eddie Houlihan, Assistant Director of Management and Budget Margie C. Rose, Assistant City Manager Ordinance setting a property tax rate of $0.570557 per $100 valuation which is effectively a 1.40% increase over the effective tax rate; and declaring an emergency. Be it ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1: The City Council of the City of Corpus Christi does hereby levy and adopt the ad valorem tax rate on $100 valuation for this city for tax year 2012 as follows: $0.380339 for the purpose of maintenance and operation 0.190218 for payment of principal and interest on debt $0.570557 Total Tax Rate THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 2.39 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $8.88. SECTION 2: That there is hereby levied, to be assessed and collected in current money of the United States of America, for the use of the City of Corpus Christi, Texas, for the tax year 2012 and for each succeeding tax year thereafter, until otherwise provided and ordained, an annual ad valorem tax of $0.380339 on each One Hundred Dollar value thereof, on all property, real, personal, and mixed, located within the said City of Corpus Christi, upon which a tax is authorized to be levied by law, and upon all franchises of all individuals, partners and corporations holding franchises in the City for defrayment of current expenses of the government, including but not limited to street improvement of said City. Said tax shall be assessed upon 100 percent of the market value of property subject thereto. SECTION 3: That there is hereby levied, to be assessed and collected in current money of the United States of America, for the use of the City of Corpus Christi, Texas for the tax year 2012 and for each succeeding tax year thereafter, until otherwise provided and ordained, an annual ad valorem tax of $0.190218 on each One Hundred Dollar value on all property, real, personal, and mixed, and franchises described in Section 2 of this ordinance and assessed upon 100 percent of the market value of property subject thereto, said taxes to be appropriated for the purpose of creating a sinking fund to pay the interest and principal maturities on all outstanding City of Corpus Christi bonds not otherwise provided for, and including the interest, agent fees, and maturities of the following City of Corpus Christi bonds: ANNUAL DEBT SERVICE DUE FY 2012 -2013 Principal Interest & Fees Total 2001 General Obligation $1,015,000 $553,365 $1,568,365 2002 Certificates of Obligation $1,435,000 $1,055,302 $2,490,302 2003 General Obligation $725,000 $87,344 $812,344 2004 Certificates of Obligation $305,000 $224,026 $529,026 2005 General Obligation $5,780,000 $3,608,239 $9,388,239 2005 Certificates of Obligation $300,000 $608,419 $908,419 2006 Certificates of Obligation $410,000 $795,842 $1,205,842 2007 Certificates of Obligation $108,940 $90,664 $199,604 2007 General Obligation $170,000 $143,745 $313,745 2007A General Obligation $1,300,000 $1,154,843 $2,454,843 2008 Tax Notes $1,060,000 $115,280 $1,175,280 2008 Certificates of Obligation $240,000 $568,266 $808,266 2009 General Obligation $3,270,000 $3,552,738 $6,822,738 2009 Certificates of Obligation $290,000 $317,371 $607,371 2010 General Obligation $500,000 $486,258 $986,258 2010 Certificates of Obligation $105,000 $112,904 $217,904 2012 General Obligation $500,000 $2,184,542 $2,684,542 2012 Public Property Contractual Obligation $550,000 $163,927 $713,927 2012A General Obligation $0 $211,188 $211,188 Total required for 2012 debt service $18,063,940 $16,034,263 $34,098,203 Less: Amount paid from unencumbered fund balance - $2,544,505 Less: Transfers for self- supporting debt - $7,219,406 Total to be paid from taxes in 2012 $24,334,292 In addition to the ad valorem tax levy for debt service totaling $24,830,910, the balance of this debt, if any, incurred by the City of Corpus Christi shall be funded from sources other than ad valorem taxes. SECTION 4: That all taxes for the tax year 2012 hereby levied shall be due on receipt of the tax bill and shall be delinquent if not paid before February 1, 2013, except as otherwise provided in the Texas Property Tax Code; and penalty and interest shall be due on any delinquent taxes as provided by Chapter 33 of said Property Tax Code. No discount shall be allowed for early payment of taxes. The Texas Constitution, Property Tax Code and other applicable laws shall govern all matters related to the taxes levied herein, and the City shall have all authority thereunder. SECTION 5: If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 6: 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 day of August, 2012. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas Day of , 2012 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 Kelley Allen Larry Elizondo, Sr. Priscilla G. Leal David Loeb John E. Marez Nelda Martinez Mark Scott AGENDA MEMORANDUM Future Item for the City Council Meeting of (8/21/12) Action Item for the City Council Meeting of (8/28/12) DATE: August 10, 2012 TO: Ronald L. Olson, City Manager FROM: Herb Canales, Library Director herbc(a�cctexas.com 826 -7070 Renaming the Greenwood Branch Library and the Children's Library CAPTION: Resolution authorizing the name change of the Greenwood Library to the Ben F. McDonald Public Library and the naming of the Greenwood Library children's area the Velia and Joe De Leon Children's Library. PURPOSE: Authorizing renaming Greenwood Branch Library and the Greenwood Library children's area. BACKGROUND AND FINDINGS: Mayor Joe Adame has requested renaming the Greenwood Branch Library in honor of former mayor Ben F. McDonald and renaming the Greenwood Branch Library children's area in honor of Velia and Joe De Leon. ALTERNATIVES: None. OTHER CONSIDERATIONS: None. CONFORMITY TO CITY POLICY: Current Council policy approved by Resolution 21901, 8. Naming of City Facilities, states: "final decisions regarding the naming of City facilities shall be the decision of the City Council. The City Council may request recommendations from City boards, commissions, committees or advisory bodies." EMERGENCY / NON - EMERGENCY: Non - Emergency DEPARTMENTAL CLEARANCES: None FINANCIAL IMPACT: None ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: None RECOMMENDATION: Staff recommends approval. LIST OF SUPPORTING DOCUMENTS: None. Resolution Authorizing the name change of the Greenwood Library to the Ben F. McDonald Public Library and naming the Greenwood Library children's area the Velia and Joe De Leon Children's Library WHEREAS, Mayor Ben F. McDonald was instrumental in passing civil rights ordinances in the City during the early 60's and was a prominent force in shaping Corpus Christi history during those years; WHEREAS, Mayor Ben F. McDonald promoted the development of branch libraries in Corpus Christi; WHEREAS, Ben F. McDonald had the distinction of running a major State agency, The Texas Department of Community Affairs; and WHEREAS, Councilmember Joe De Leon promoted the development of branch libraries, and in particular, the construction of the Greenwood Library; WHEREAS, Velia De Leon worked on behalf of the library system as a board member for many years; WHEREAS, Velia De Leon was a promoter of libraries and books in South Texas beginning in the 1920s; WHEREAS, Velia De Leon was involved with the Corpus Christi Public Library system from the 1950s until she passed away in 1990, and was involved in the construction of the Greenwood Library in 1966; and WHEREAS, in honor of Ben F. McDonald and in honor of Velia and Joe De Leon; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: Section 1. The name change of the Greenwood Library to the Ben F. McDonald Public Library is hereby authorized. Section 2. The naming of the Greenwood Library children's area to Velia and Joe De Leon Children's Library is hereby authorized. Section 3. This Resolution shall become effective on the date of final City Council approval. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Joe Adame City Secretary Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Kelley Allen Larry Elizondo, Sr. Priscilla G. Leal David Loeb John E. Marez Nelda Martinez Mark Scott AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: August 6, 2012 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com FROM: Emily Martinez (361) 882 -7448 emartinez@ccredc.com Tax Abatement for Mr. Owen A. Norton for the property located at 908 and 916 -928 Staples Street CAPTION: Resolution authorizing the execution of an agreement with Mr. Owen A. Norton providing for temporary property tax abatement. PURPOSE: Granting a temporary tax abatement Mr. Owen A. Norton for a term of up to eight years. BACKGROUND AND FINDINGS: Mr. Owen A. Norton submitted an application for incentives to the City of Corpus Christi requesting tax abatement for the building located at 908 and 916 -928 Staples Street. The development is located within the Texas Enterprise Zone, a council identified catalyst area. In accordance with the City's Tax Abatement Guidelines and Criteria, Mr. Norton is seeking tax abatement as per section 3 of the Guidelines: The level of any New Facility, Expansion, or Modernization that is located within a Catalyst Area or that is a Locally -Owned Facility is increased by one level above the standards set forth in Section 2(i)(1) and (2) above, with a minimum level of 3 for any the project. Further, if a Facility qualifies under both the capital investment qualification criteria and the new jobs and salary criteria, the Facility will be increased by one level above the highest criteria level achieved. Level 3 provides a maximum number of 8 years tax abatement, including up to 2 years during construction. The increment value of the City's ad- valorem tax will be abated based on the following schedule: • Years 1 -5 100% (not to exceed 2 years for construction) • Year 6 75% • Year 7 50% • Year 8 25% The 8,950 square foot building will become a restaurant, and retail and office space keeping the period look. Improvements are estimated to be approximately $425,000. The property is currently appraised at $76,946 and is currently vacant. This project will create approximately 8- 10 permanent jobs. ALTERNATIVES: There are no other incentives available to a project this size. It is below the investment limits for a County or College District abatement. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: This tax abatement is eligible for a Tier 3 treatment. It is in a Texas Enterprise Zone and it is locally owned. EMERGENCY / NON - EMERGENCY: NON - EMERGENCY FINANCIAL IMPACT: ❑ Operating Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012- 2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item 10,912 10,912 BALANCE 10,912 10,912 Fund(s): Comments: The site pays in $439 /year in City property taxes. With the added investment the total taxes for the first ten years would be an additional $10,912 net of the abatement and net the current valuation. RECOMMENDATION: Staff recommends approval to grant tax abatement to Owen A. Norton, the owner of taxable property located at 908 and 916 -928 Staples Street in accordance with the City's Tax Abatement Guidelines and Criteria. LIST OF SUPPORTING DOCUMENTS: Tax Abatement Application Tax Abatement Agreement Page 1 of 2 Resolution Authorizing the execution of an agreement with Mr. Owen A. Norton providing for temporary property tax abatement Whereas, the Texas Property Redevelopment and Tax Abatement Act (the "Act "), Texas Tax Code, Chapter 312, as amended, authorizes the City of Corpus Christi, Texas (the "City ") to enter into tax abatement agreements for projects meeting the guidelines and criteria for granting tax abatement duly adopted by the City; and Whereas, an application for temporary tax abatement has been filed with the City by Mr. Owen A. Norton for the construction of improvements to facilities in the City; and Whereas, the property to be covered by the proposed tax abatement agreement is located in the city limits of the City within an area designated as a reinvestment zone eligible for property tax abatement under the provisions of the Act; and Whereas, the project is not located on property that is owned or leased by a person who is a member of the City Council of the City of Corpus Christi; Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. The City Council finds and determines that the terms of the proposed agreement with Mr. Owen A. Norton providing for temporary property tax abatement and the property subject to the proposed agreement meet the applicable guidelines and criteria, as amended, adopted by the City. The City Council further determines that the proposed project is feasible and the proposed temporary abatement of taxes will inure to the long term benefit of the City. SECTION 2. The Tax Abatement Agreement with Mr. Owen A. Norton, attached as Exhibit A, is approved, and the City Manager is authorized to execute the agreement. This resolution takes effect upon City Council approval on this the day of , 2012. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary 0037 2 RESOLUTION - Owen Norton Tax Abatement 7 -19 -12 Joe Adame Mayor Page 2of2 Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Kelley Allen Larry Elizondo, Sr. Priscilla G. Leal David Loeb John E. Marez Nelda Martinez Mark Scott 0037 2 RESOLUTION - Owen Norton Tax Abatement 7 -19 -12 TAX ABATEMENT AGREEMENT This Tax Abatement Agreement ( "Agreement ") is made and entered into by and between the City of Corpus Christi, Texas ( "City ") and Owen A. Norton, a Sole Proprietor, the owner of taxable property ( "Owner ") in the City of Corpus Christi, Texas, located on 908 and 916 -928 Staples Street, Corpus Christi, Nueces County, Texas ( "Property"). I. AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Texas Tax Code, Chapter 312, as amended ( "Act "), and is subject to the laws of the State of Texas and the charter, ordinances, and orders of the City. II. DEFINITIONS A. As used in this Agreement, the following terms have the following meanings: 1. "Abatement" means the temporary or partial exemption from ad valorem taxes of certain added value to real and personal property in a zone designated for economic development purposes under the Act 2. "Added Value" means the increase in the assessed value of the Eligible Property as a result of "expansion" or "modernization" of an existing facility or construction of a "new facility." It does not mean or include "deferred maintenance." 3. "Base Year Value" means the assessed value of the Improvements on the Property as certified by the Nueces County Appraisal District as of the January 1 preceding the execution of this Agreement, plus the agreed upon value of Improvements made after January 1, but before the execution of this Agreement. 4. "Construction Phase" means the period during which a material and substantial improvement of the Property occurs which represents a separate and distinct construction operation undertaken for the purpose of erecting the Improvements. (a) The Construction Phase ends upon the earliest to occur of the following events: (1) When a certificate of occupancy is issued for the project (if within City limits). (2) When commercial production of a product or provision of a service is achieved at the facility. (3) When the architect or engineer supervising construction issues a certificate of substantial completion, or some similar instrument. (4) Two (2) years after the date of this Agreement. (b) The determination of the end of the Construction Phase is made by the City, in its sole and absolute discretion, based upon the above criteria and the other factors as the City may deem relevant. Page 1 of 14 Project Cap Tax Abatement Agreement 7 -19-12 (c) The determination of the end of the Construction Phase by the City is conclusive, and any judicial review of the determination is govemed by the substantial evidence rule. 5. "Eligible Property" means the buildings, structures, site improvements, and that office space and certain personal property necessary to the operation and administration of the Facility to be constructed under this Agreement. A list of the Eligible Property is set forth in the Project Description, which is attached to this Agreement as Exhibit A and made a part of this Agreement. During the Construction Phase of the Eligible Property, the Owner may make the change orders to the Eligible Property as are reasonably necessary to accomplish its intended use, provided that no change order may be made which will change the qualification of the project as a "Facility" under the Guidelines and Criteria for Granting Tax Abatement approved by the City. 6. "Facility" means a Basic Manufacturing or Service Facility, Regional Distribution Center Facility, Regional Telecommunications /Data Processing Center Facility, Regional Visitor Amusement Facility, Central Business District (CBD) Residential Facility, Renewal Community Facility, or Petrochemical Facility approved by the City as set forth in the Guidelines and Criteria for Granting Tax Abatement adopted by the City. 7. "Improvements" means the buildings, portions of buildings, and other improvements, including fixed machinery and equipment, used for commercial or industrial purposes on the Property. 8. "Ineligible Property" means land; inventories; supplies; tools; furnishings and other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred maintenance investments; property to be rented or leased, except as provided in Section 2(e); any improvements, including those to produce, store or distribute natural gas, fluids or gases, which are not integral to the operation of the Facility; improvements to real property which have an economic life of less than 15 years; property owned or used by the State of Texas or its political subdivisions or by any organization owned, operated, or directed by a political subdivision of the State of Texas; unless any of the above types of property are specifically authorized by the City. B. The Guidelines and Criteria for Granting Tax Abatement adopted by the City are incorporated as a part of this Agreement. Except as the guidelines and criteria are specifically modified by this Agreement, all definitions in the guidelines and criteria are applicable to this Agreement. III. PROPERTY A. The Property is an area within the City of Corpus Christi, Texas, located in whole or in part within the jurisdiction of the City, and is more fully described in Exhibit B, which is attached to this Agreement and made a part of this Agreement. The Property is located within a zone for tax abatement established under Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus Christi, Texas. B. The Nueces County Appraisal District has established the following values for the Property as of the January 1 valuation date prior to the date of execution of this Agreement. Account No. 7921 - 0002 -0080 (R2000 18 612) Page 2 of 14 Project Cap Tax Abatement Agreement 7 -19-12 Land $32,200 C. The City and the Owner agree that the value of any additions to the Improvements made after January 1 or not otherwise reflected on the above valuation of Improvements is: Additional Improvements: $44,746 D. Addition of the above amount to the valuation of the Improvements as of the January 1 valuation date prior to the date of execution of this Agreement results in a Base Year Value as follows: Base Year Value: $76,946 IV. TERM OF ABATEMENT AND AGREEMENT A. The City agrees to abate the ad valorem taxes on the Eligible Property under this Article and Articles V and VI of this Agreement. The Abatement is effective with the January 1 valuation date immediately following the date of execution of this Agreement. The Abatement continues for up to two (2) years during the period of the Construction Phase and for the next six (6) full tax years after the Construction Phase, expiring as of December 31 of the 2020 tax year. If the period of the Construction Phase exceeds two (2) years, the Facility is considered completed for purposes of Abatement, and in no case may the period of Abatement, inclusive of construction and completion, exceed eight (8) tax years. The years of Abatement provided in this Agreement in each instance coincide with the tax year commencing on January 1 and expiring on December 31, and in no event may the Abatement extend beyond December 31 of the 2020 tax year. This Abatement also covers as Eligible Property those supplemental improvements to the Eligible Property that are added or constructed during the post - construction two (2) year period of Abatement. In no event, however, may the total Abatement period for the Eligible Property exceed the maximum six (6) year Abatement period for the entire project as specified in this Agreement. B. The term of this Agreement continues for a period of five (5) years following expiration of the abatement period. All terms and conditions imposed upon the Owner continue in effect during the period, and the Owner is obligated specifically to continue the minimum employment levels specified in this Agreement. Any default is subject to the provisions of Article VIII of this Agreement. V. TAXABILITY During the period that the Abatement is effective, taxes are payable as follows: 1. The value of the land comprising the Property is fully taxable. 2. The Base Year Value of existing Improvements comprising the Property is fully taxable. 3. The value of Ineligible Property is fully taxable. 4. The Added Value of Eligible Property is abated under Article VI of this Agreement. VI. AMOUNT OF ABATEMENT Page 3 of 14 Project Cap Tax Abatement Agreement 7 -19-12 A. The Abatement provided by this Agreement is based upon a Manufacturing Facility located in the Renewal Community. Owner represents and warrants that this project will add 10 additional permanent or full -time operating or contract employees and will maintain the same level of employment for the term of the abatement agreement. The percentage of tax abated is under the following schedule: Percentage of Abatement Construction Period (not to exceed 2 years) 100% Yearl 100% Year 2 100% Year 3 100% Year 4 75% Year 5 50% Year 6 25% B. In order to be counted as a permanent job under this Agreement, the job must be a full -time position providing regular work schedules of at least 35 hours per week. For compliance purposes, the determination date is January 1 of each year, commencing with the January 1 following the date of completion of construction. The percentage of abatement provided each year under this Agreement is based upon the employment information as of January 1 of the year. As a result, the actual amount of abatement may vary from year to year based upon employment levels and property valuations. C. At the time of execution of this Agreement, the Owner reasonably estimates and represents to the City that the Added Value comprising permanent Improvements upon completion of the Construction Phase is: $425,000 ( "Estimated Added Value "), of which $425,000 is eligible for tax abatement. D. In the event that upon completion of the Construction Phase, the Added Value of permanent Improvements, as determined by the Appraisal District, is at any time during the period of Abatement less than eight -five percent (85 %) of the Estimated Added Value, not due to circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes under this Agreement, an amount equal to the then current tax rate of the City applied to the difference between the Added Value from eighty -five percent (85 %) of the Estimated Added Value, multiplied by 100 %, minus the net percentage of Abatement provided under this Agreement. For the purposes of this provision, the term "circumstances beyond the control of Owner" includes casualty losses, national economic factors, shutdowns due to governmental regulations, strikes, acts of war; and the like. E. The formula for calculating the additional tax is outlined as follows: Page 4 of 14 Project Cap Tax Abatement Agreement 7 -19 -12 (Tax Rate] x [(85% of Est. Added Value - Actual AV) x (100% - Abatement %)] = Additional Tax. VII. CONTEMPLATED IMPROVEMENTS A. The contemplated improvements are set forth in the Project Description attached as Exhibit "A." During the Construction Phase, the Owner may make the change orders to the project that are reasonably necessary, provided that no change order may be made that will change the qualification of the project as a "Facility" under the Guidelines and Criteria for Granting Tax Abatement approved by the City. All improvements must be completed under all applicable laws, ordinances, rules or regulations. During the term of this Agreement, use of the Property is limited to operation of the Facility described in the Project Description consistent with the general purpose of encouraging development or redevelopment of the zone during the period of this Agreement. B. Owner represents and warrants that this project will add 10 additional permanent or full -time operating or contract employees and will maintain the same level of employment for the term of the abatement agreement. Also, Owner represents and warrants the project is not expected to solely or primarily have the effect of transferring employment from one part of Nueces County to another. VIII. EVENTS OF DEFAULT AND RECAPTURE A. Failure to Commence Operation During Term of Agreement. In the event that the Facility is not completed and does not begin operation with the minimum number of 10 permanent jobs by the January 1 following the completion of construction, no abatement is given for that tax year, and the full amount of taxes assessed against the property is due and payable for that tax year. In the event that the Owner fails to begin operation with the minimum number of 10 permanent jobs by the next January 1, then this Abatement Agreement terminates and all abated taxes during the period of construction are recaptured and must be paid within 60 days of the termination. B. Discontinuance of Operations During Term of Abatement. In the event the Facility is completed and begins operation with the required minimum number of permanent jobs, but subsequently discontinues operations or the minimum number of permanent jobs is not maintained on any January 1 during the term of the Agreement after the completion of construction, for any reason except on a temporary basis due to fire, explosion, or other casualty, accident, or natural disaster, the Agreement may be terminated by the City, and all taxes previously abated by virtue of this Agreement are recaptured and must be paid within 60 days of the termination. C. Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to become delinquent or fails to timely and properly follow the legal procedures for their protest or contest, this Agreement terminates and the abatement of the taxes for the calendar year of the delinquency also terminates. The total taxes assessed without abatement for that calendar year must be paid within sixty (60) days from the date of termination. Penalty and interest do not begin to accrue on the additional amount of taxes due as the result of recapture under this provision until the first day of the month following the sixty (60) day notice, at which time penalty and interest accrue under the laws of the State of Texas. Penalty and interest on the amount of taxes originally levied based upon the Abatement begin to accrue as of the date the taxes were due under the laws of the State of Texas. Page 5 of 14 Project Cap Tax Abatement Agreement 7 -19 -12 D. Notice of Default. Should the City determine that the Owner is in default under the terms and conditions of this Agreement, City must notify the Owner that if the default is not cured within sixty (60) days from the date of the notice ( "Cure Period "), then this Agreement may be terminated. In the event the Owner fails to cure the default during the Cure Period, this Agreement may be terminated and the taxes abated by virtue of the Agreement will be recaptured and must be paid as provided in this Agreement. E. Actual Added Value. Should the Nueces County Appraisal District determine that the total level of Added Value during any year of the term of this Agreement after completion of the Construction Phase is lower than the Estimated Added Value, then a lower percentage of Abatement is applicable. For each year during which an Abatement has been granted, the difference between the tax abated and the tax that should have been abated based upon the actual Added Value as determined by the City must be paid within 60 days of notification to the Owner of the determination. Penalty and interest does not begin to accrue upon the sum until the first day of the month following the sixty (60) day notice, at which time penalty and interest accrues under the laws of the State of Texas. F. Reduction in Rollback Tax Rate. 1. If during any year of the period of Abatement any portion of the abated value is added to the current total value of the City, but is not treated as "new property value" (as defined in Section 26.012 (17) of the Texas Tax Code) for the purpose of establishing the "effective maintenance rate" in calculating the "rollback tax rate" under Section 26.04 (c) (2) of the Texas Tax Code, and if the City's budget calculations indicate that a tax rate in excess of the "rollback tax rate" is required to fund the operations of the City for the succeeding year, then the City recaptures from the Owner a tax in an amount equal to the lesser of the following: (a) The amount of the taxes abated for that year by the City with respect to the Property. (b) The amount obtained by subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate, computed with the abated property value being treated as new property value and multiplying the difference by the total assessed value of the City. 2. If the City has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated under subparagraph (b) above is prorated on the basis of the value of the abatement with respect to each taxpayer. 3. This event does not constitute a "default" under this Agreement, and the sixty (60) day Cure Period provided above does not apply. The recaptured taxes must be paid within thirty (30) days after notice of the rollback in tax rate has been given to the Owner. Penalty and interest do not begin to accrue upon the sum until the first day of the month following the thirty (30) day notice, at which time penalty and interest accrue under the laws of the State of Texas. G. Continuation of Tax Lien. 1. The amount of tax abated each year under the terms of this Agreement is secured by a first and prior tax lien, which continue in existence from year to year until the time as Page 6 of 14 Project Cap Tax Abatement Agreement 7 -19 -12 this Agreement between the City and Owner is fully performed by Owner, or until all taxes, whether assessed or recaptured, are paid in full. H. City Council Reserves Right to Terminate or Modify Agreement. In the event of any default by Owner, the City Council reserves the right to terminate or modify this Agreement. I. Owner's right to appeal. 1. Owner must be afforded written notice of the default and the opportunity to cure as provided above. 2. If Owner believes the action was improper, Owner may file an appeal in Nueces County district court within sixty (60) days after written notice of the action by the City. 3. Owner shall remit to the City, within the 60 -day period, any additional or recaptured taxes levied under the payment provisions of Texas Tax Code § 42.08. 4. If the final determination of the appeal increases Owner's tax liability above the amount paid, Owner shall remit the additional tax under Tax Code § 42.42. 5. If the final determination of the appeal decreases Owner's tax liability, the City will refund the Owner the difference between the amount of tax paid and the amount of tax for which Owner is liable under Tax Code § 42.43. IX. ADMINISTRATION A. Inspections. The Owner shall allow employees and /or representatives of the City to have access to the Property during the term of this Agreement to inspect the Facility to determine compliance with the terms and conditions of this Agreement. All inspections will be made only after the giving of twenty -four (24) hours prior notice, and conducted in the manner as to not unreasonably interfere with the construction or operation of the Facility. All inspections must be made with one or more representatives of the Owner and under Owner's safety standards. B. Appraisals. 1. The Chief Appraiser of the Nueces County Appraisal District annually determines: (a) The taxable value of the real and personal property comprising the Property taking into consideration the Abatement provided by this Agreement. (b) The full taxable value without Abatement of the real and personal property comprising the Property. 2. The Chief Appraiser records both the abated taxable value and the full taxable value in the appraisal records. 3. The full taxable value figure listed in the appraisal records is used to compute the amount of abated taxes that are required to be recaptured and paid in the event this Agreement is terminated in a manner that results in recapture. Page 7 of 14 Project Cap Tax Abatement Agreement 7 -19-12 4. Each year the Owner shall furnish the Chief Appraiser with the information outlined in Chapter 22, Texas Tax Code, as amended, as may be necessary for the administration of the Agreement specified in this Agreement. C. Annual Reports. 1. Owner shall certify to the governing body of the City on or before April 1 each year that the Owner is in compliance with each applicable term of this Agreement. 2. Additionally, during the initial four years of the term of property tax abatement, Owner shall provide to the City an annual report covering those items listed on Schedule I attached to this Agreement in order to document the efforts of the Owner to acquire goods and services on a local basis. 3. The annual report is prepared on a calendar year basis and is submitted to the City no later than ninety (90) days following the end of each the calendar year. 4. The annual report is accompanied by an audit letter prepared by an independent accounting firm which has reviewed the report. 5. The copies of the four prior quarterly IRS 941 returns must be provided to verify employment. D. Utilization of Local Contractors and Suppliers. Owner agrees to exercise reasonable efforts in utilizing local contractors and suppliers in the construction of the Project, except where not reasonably possible to do so without added expense, substantial inconvenience,- or sacrifice in operating efficiency in the normal course of business, with a goal of 50% of the total dollar amount of all construction contracts and supply agreements. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. Owner agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Owner to comply with the Local Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Owner is in compliance with this requirement. Failure to substantially comply with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. E. Utilization of Disadvantaged Business Enterprises ( "DBE's. Owner agrees to exercise reasonable efforts in utilizing contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically - underutilized business enterprises. In order to qualify as a business enterprise under this provision, the firm must be certified by the City, the Regional Transportation Authority or another governmental entity in the jurisdiction of the home office of the business as complying with state or federal standards for qualification as such an enterprise. Owner agrees to a goal of 30% of the total dollar amount of all construction contracts and supply agreements being paid to disadvantaged business enterprises, with a priority made for disadvantaged business enterprises which are local. Owner agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Owner to comply with the DBE Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Owner is in compliance with this requirement. Failure to substantially comply with this requirement, in the Page 8 of 14 Project Cap Tax Abatement Agreement 7 -19-12 sole determination of the City Manager or designee, shall be a default hereunder. For the purposes of this section, the term "local" as used to describe contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically - underutilized business enterprises includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. F. Living Wage Requirement. In order to count as a permanent full -time job under this tax abatement program, the job should provide a "living wage" for the employee. The target living wage under this abatement program is that annual amount equal or greater than poverty level for a family of three, established by the U.S. Department of Health and Human Services Poverty Guidelines, divided by 2,080 hours per year for that year. G. Health Insurance. To qualify for this incentive, an employer shall certify that it has offered a health insurance program for its employees during the term of the Agreement. H. Undocumented Workers. Owner does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, Owner is convicted of a violation under §U.S.C. Section 1324a(f), Owner shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date Owner has been notified of the violation. X. ASSIGNMENT A. The Owner may assign this Agreement to any one or more corporation(s), 50% or more of the outstanding voting securities of which are owned, directly or indirectly, by one of the Owners, or any partnership(s) or limited partnership(s) in which an Owner, or a subsidiary of an Owner, is a general partner. B. The Owner may assign this Agreement to any other new owner or lessee of the Facility with the prior written consent of the City, which consent may not be unreasonably withheld. C. Any assignment must provide that the assignee shall irrevocably and unconditionally assume all the duties and obligations of the assignor and become the Owner upon the same terms and conditions as set out in this Agreement. D. In the event more than one entity is Owner under this Agreement, the obligations of the entities is joint and several. E. Any assignment of this Agreement is to an entity that must provide substantially the same improvements to the Property, except to the extent the improvements have been completed. F. No assignment is approved if the Owner or any assignee is indebted to the City for ad valorem taxes or other obligations. XI. NOTICES A. Any notice required to be given under the provisions of this Agreement must be in writing and is duly served when deposited, with the proper postage prepaid, and registered or certified, return receipt requested, with the United States Postal Service, addressed to the City or Owner at the addresses listed below. Page 9 of 14 Project Cap Tax Abatement Agreement 7 -19-12 B. If mailed, any notice or communication is deemed to be received three days after the date of deposit in the United States Mail. Unless otherwise provided in this Agreement, all notices are delivered to the following addresses: To the City: CITY OF CORPUS CHRISTI 1201 Leopard Street P. 0. Box 9277 Corpus Christi, Texas 78469 Attn: City Manager To the Owner: Owen Norton 4003 Bunny Run Austin, Texas 78746 C. Either party may designate a different address by giving the other party ten days written notice. This Agreement has been executed by the parties in multiple originals or counterparts, each having full force and effect. Executed this day of , 2012. ATTEST: CITY OF CORPUS CHRISTI, TEXAS By: By: Armando Chapa Ronald L. Olson City Secretary City Manager Page 10 of 14 Project Cap Tax Abatement Agreement 7 -19-12 OWNER: By: ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF N -eC {S § This instrument was acknowledged before me on Owen A. Norton, Sole Proprietor. Project Cap Tax Abatement Agreement 7 -19-12 KNOW ALL BY THESE PRESENTS (ol tuv,S# , 2012, by Page 11 of 14 AR PUBLIC, State of Te s SCHEDULE 1 "Buy Local" Annual Reports The following information is reported to the City on a calendar -year basis during the first four years of the tax abatement program: 1. Dollar amount spent for materials* (local). 2. Dollar amount spent for materials (total). 3. Dollar amount spent for labor ** (local). 4. Dollar amount spent for labor ** (total). 5. Number of jobs created in the construction project (local). 6. Number of jobs created in the construction project (total). 7. Number of jobs created on a permanent basis (local). 8. Number of jobs created on a permanent basis (total). * "Materials" are defined to include all materials used in excavation, site improvement, demolition, concrete, structural steel, fire proofing, piping, electrical, instruments, paintings and scaffolding, insulation, temporary construction facilities, supplies, equipment rental in construction, small tools and consumables. This term does not include major items of machinery and equipment not readily available locally. ** "Labor" is defined to include all labor in connection with the excavation, site improvement, demolition, concrete construction, structural steel, fire proofing, equipment placement, piping, electrical, instruments, painting and scaffolding, insulation, construction services, craft benefits, payroll burdens, and related labor expenses. This term does not include engineering services in connection with the project design. The term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. Page 12 of 14 Project Cap Tax Abatement Agreement 7 -19-12 Exhibit A Project Plan Mr. Norton will renovate this 1920's era strip center as defined as 918 -926 Staples Street with the adjacent parking lot defined as 908 Staples. The owner will invest approximately $425,000 to create retail, restaurant, and office space keeping the period look. This will revitalize this area of town by providing a mixed use facility. Page 13 of 14 Project Cap Tax Abatement Agreement 7 -19-12 EXHIBIT B Description of Property The land referred to in this agreement is described as follows: TRACT ONE: Lots Eight (8), Nine (9), and Ten (10), Block Two (2), SHANNON ADDITION, an Addition to the City of Corpus Christi, Nueces County, Texas, according to the map or plat thereof recorded in Volume A, Page 21. Map Records of Nueces County, Texas; SAVE AND EXCEPT that portion of Lots eight (8) and Nine (9) conveyed to the City of Corpus Christi per Deed dated March 8,1929, and recorded in Volume 198, Page 5, Deed Records of Nueces County, Texas. TRACT TWO: A 40 ft by 80 ft tract of land at the NE corner of the intersection of South Staples and Hancock Streets, and being described by metes and bounds as follows: BEGINNING at the SE corner of Lot Nine (9), Block TWO (2), SHANNON ADDITION, as shown on Map in Volume A, Page 21, Map Records, Nueces County. Texas; THENCE S. 5 Deg. 30" W 40ft to the originally intended N. Line of Hancock Street; THENCE, with the originally intended N. line of Hancock Street S. 84 Deg. 30" 'W 80 ft to the existing E. line of South Staples Street, and being N. 84 Deg. 30' E 10 ft. from the original E. line of South Staples Street; THENCE, on the existing E. line of S. Staples Street N. 5 Deg. 30" E 40 ft to an intersection with the S. line of Lot Nine (9); THENCE, N. 84 Deg. 30' E. 80 ft. on said line of Lot Nine (9), 80 ft. to the place of beginning. Page 14 of 14 Project Cap Tax Abatement Agreement 7 -19 -12 APPLICATION FOR TAX ABATEMENT This application should be filed prior to the beginning of construction or the installation of improvements. The filing of this document acknowledges familiarity and conformance with Guidelines and Criteria for Granting Tax Abatement. This application will become part of the Tax Abatement Agreement and any knowingly false representations will be grounds for terminating the Agreement. This Application should be submitted to the City Manager, City Hall, 1201 Leopard, P.O. Box 9277, Corpus Christi, Texas 78469 (for properties inside the City limits) and to the County Judge, Nueces County Courthouse, 901 Leopard Street, Corpus Christi, Texas 78401 (for properties in unincorporated areas). FOUR COPIES OF THE APPLICATION SHOULD BE FILED WITH THE APPROPRLATE GOVERNMENTAL UNIT. .. .... ......... A cant Information Date Project Inforpiation Use of Facility, asic Manufacturing or Service Industry OPetrochemical Facility E1 Regional Visitor/Amusement Facility El Renewal Community Facility ibe Pro et, Service or Facility to be provided. 11/4„ Project Deseription: ATTACH ANNUAL REPORT Number of Employees DRegional Distribution Center ORegional Telecommunications Facility DEnterprise Zone Residential Redevelopment Facility .1 Attach as Exhibit A (one or more letter-size pages) a statement fully explaining the project, desert. e xisti g 5hJ and improvements, describing all proposed improvements and investments, and providing a list of improvements and property for which abatement is requested. qt.k, Operation Address an Le, City School District [WOW PROJECT DEXPANSION EMODERN]ZATION egription Attach as Exhibit 13 (one or more letter-size pages) a complete legal description andlor map showing proposed site. Economic Information cmistruction Estimates Commencement Date: Completion Date: Peak Construction Jobs: Total Cost of Construction: Permanent Employment Estimat Permanent Employment Number of Jobs Created PAGE TWO IF MODERNIZATION: Estimated Economic Life of Existing Plant: (t.- Added Economic Life from Modernization: Estimated Appraised Value on Site M ofIanuary 1 Preceding Abatement Agreement Value of Abated Property upon Completion of Project Value upon Completion of Project of any Property and Project Improvements not subject to Abatement Land lmkrovements Personal Property Z:6 043-0 bC) On Is the land currently under an agricultural-use or open-space exemption? Yes Land/Imp. Tax Acct, No, Personal Prop, Acct, No, VARIANCE, Is the applicant seeking variance under Section 3(t) of the Guidelines? Yes EjNo Off "yes" attach the required supplementary information, OTHER ABATEMENTS: Has the applicant made application for abatement of project by another taxing jurisdiction or nearby counties? Yes ONo DIf "yes" provide dates of application, hearing dates, if scheduled, name ojk risdiction nd contacts, and letters of intent, COMPA RESENTAT Name: Name and Title of Authorized Company Offlcial INSTRUCTIONS Applicants and projects must meet the requirements established by the Guidelines and Criteria in order to receive positive consideration. Section 2 of the Guidelines, for example, sets out regulations governing eligible facilities, eligible and ineligible improvements, terms and economic qualifications. Conformance with all sections is required for eligibility. APPLICATION INFORMATION The taxing unit may consider Applicant's financial capacity in determining whether to enter into an abatement agreement. Established companies for which public information is available, or the wholly-owned businesses of such companies, should attach a statement showing when the company was established, business references (name, contact and telephone number of principal bank, accountant and attorney) and may be required to submit an audited financial statement and business plan. PROJECT INFORMATION Only facilities listed in the Guidelines may receive abatement without applying for a variance. Check the definitions in the Guidelines to see if your project qualifies. If the project is a Basic Manufacturing or Service Industry or a Regional Distribution Center, the Application should include market studies, business plans or other materials demonstrating that the facility is intended to serve a market the majority of which is outside of the Nueces County region. ECONOMIC INFORMATION Permanent Employment Estimates — In estimating permanent employment, include the total number of jobs (using Full Time Equivalents) created at this site by your firm as well as known permanent jobs of service contractors required for operation. Estimated Appraised Value on Site — The value January 1 preceding abatement should be the value established by the Nueces County Appraisal District. if the Applicant must estimate value because the taxable value is not known or is combined with our properties under a single tax account, please so state. To qualify, the abated properties must meet the criteria outlined in the Tax Abatement Policy. Projections of value should be a "best estimate" based on taxability in Texas. August 20, 2012 Nueces County County Judge Loyd Neal 901 Leopard Street, Room 303 Corpus Christi, Texas 78401 Corpus Christi Independent School District Superintendent Scott El liff 801 Leopard Street Corpus Christi, Texas 78401 Corpus Christi REGIONAL ECONOMIC DEVELOPMENT CORPORATION This is notice that the City of Corpus Christi intends to determine whether to grant a temporary tax abatement to Owen Norton for his property located at 908 and 916-928 South Staples Street in Corpus Christi, Texas on August 28, 2012 in the City of Corpus Christi's City Council room in City Hall located at 1201 Leopard Street Corpus Christi, Texas. This property is in a Texas Enterprise Zone and is eligible for a Tier 3 abatement which is based upon a mixed use facility located in a catalyst area. Owner represents and warrants that this project will add 10 additional permanent or full-time operating or contract employees and will maintain the same level of employment for the term of the abatement agreement. The percentage of tax abated is under the following schedule: Percentage of Abatement Construction Period (not to exceed 2 years) Year 4 Year 5 Year 6 100% 100% 100% 100% 75°A) 50% 25% As required by Texas Tax Code Section 312, all taxing jurisdictions must be notified at least seven (7) days prior to the public hearing. If you have any concerns please be present at this hearing. Mike Culbertson Vice President One Shoreline Plaza 800 North Shoreline Blvd, Suite 1300 South Corpus Christi,Texas 78491 p 361-882-7448 f 361-862-9930 www,ccrdc,corn AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: July 19, 2012 TO: Ronald L. Olson, City Manager FROM: Daniel Biles, P. E., Director of Engineering Services danb @cctexas.com (361) 826-3729 Execute Change Order No. 8 ADA Sidewalk Accessibility Improvements Staples Street from Leopard Street to Six Points (Bond Issue 2004) CAPTION: Motion authorizing the City Manager, or designee, to execute Change Order No. 8 with Safeco Insurance Company of America in the amount of $281,019.24 for the ADA Sidewalk Accessibility Improvements along Staples Street from Leopard Street to Six Points for under -run items, over -run items, additional sidewalk improvements, additional storm water improvements, additional detectable warning surfaces, and reconstruction of curb inlet tops. (Bond Issue 2004) PURPOSE: The purpose of this Agenda Item is to obtain authority to execute Change Order No. 8 for the ADA Sidewalk Accessibility Improvements along Staples Street from Leopard Street to Six Points (Project). BACKGROUND AND FINDINGS: Change Order No. 8 provides for additional funds to accommodate additional construction resulting from unforeseen changes during construction, including additional sidewalk improvements to accommodate the bus stop area adjacent to City Hall, storm water improvements to correct existing system inadequacies, curb inlet top reconstruction to accommodate storm water maintenance equipment, and under -runs and over- runs of various bid items. This change order is largely a reflection of the non - availability of record drawings depicting existing infrastructure in this older section of town as well as issues related to contractor default near the end of project construction duration. This change order was negotiated with the bonding company to resolve all outstanding project construction issues and facilitate project closeout with the Texas Department of Transportation (TxDOT) and the Federal Highway Administration (FHWA). Reconstruction of the curb inlet tops resulted from a design error and associated costs have been deducted from the A/E consultant's contract and previously credited to the project through administrative action. The changes include: C: \PROGRAM FILES \GRANICUS \LEGISTAR5 \ PACKET \995 CITY COUNCIL 8 21_2012 \ 0038 1 MEMO - CHANGE ORDER 8.DOCX • Sidewalk Improvements along the west side of Staples Street from Lipan to Leopard (adjacent to City Hall) including resurfacing the bus stop area $ 24,456.00 • Additional Storm Water Improvements Required $ 35,025.88 • Detectable Warning Surface at nine Ramps $ 4,800.00 • Reconstruction of curb inlet tops $131,010.00 • Under runs of Various Bid Items - $224,059.25 • Over runs of Various Bid Items $309,786.61 Total cost for unforeseen changes $281,019.24 The Project provides for construction of ADA curb ramps and compliant sidewalks along Staples Street from Leopard Street to Six Points, as part of the City's effort to comply with the Americans with Disabilities Act (ADA). The Project was identified and prioritized by the Committee for Persons with Disabilities (CPWD), and implements parts of both the ADA Transition Plan and the Metropolitan Planning Organization (MPO) Transportation Improvement Program. The City coordinated with TXDOT and the Regional Transportation Authority to maximize resources. Part of the Bond Issue 2004 package for Street Improvements, the Project falls under Bond Issue 2004 ADA Improvements City -Wide and FY 2010 CIP. The Street Improvement Program includes the construction of ADA - compliant barrier -free ramps and sidewalks. ALTERNATIVES: 1. Execute Change Order No. 8 as recommended. 2. Do not execute Change Order No. 8. OTHER CONSIDERATIONS: Change Order No. 8 completes the negotiations with the bonding company or surety that took over the contract when the original contractor defaulted. Executing Change Order No. 8 gives the City the ability to finish the construction and close out the contract. Not closing out this contract could seriously affect the City's receipt of TxDOT and FHWA funding. TxDOT and FHWA funding sources are at a critical point, and failure to close out the project within the mandated timeframes may cause the City to lose the federal funds earmarked for this project. CONFORMITY TO CITY POLICY: Conforms to statutes regarding construction procurement criteria; §2, Article 10 of the City Charter regarding contracts; Tex. Loc. Gov't Code § 252.048 regarding Change Orders; FY 2011 -2012 Street Capital Improvement Planning (CIP) Budget. EMERGENCY / NON - EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Not applicable C: \PROGRAM FILES \GRANICUS \LEGISTAR5 \ PACKET \995 CITY COUNCIL 8 21 2012 \0038 1 MEMO - CHANGE ORDER 8.DOCX FINANCIAL IMPACT: CIP Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $3,408,500.00 $1,591,500.00 $0.00 $5,000,000.00 Encumbered / Expended Amount This item $281,019.24 $281,019.24 Future Anticipated Expenditures $0.00 $0.00 BALANCE $3,408,500.00 $1,310,480.76 $0.00 $4,718,980.76 Fund(s): Street and Storm Water CIP Comments: Change Order No. 8 adds 90 calendar days, with anticipated completion approximately November 2012. Thus, funding for this contract will only be required during Fiscal Year 2012 -2013. RECOMMENDATION: City staff recommends that Change Order No. 8 be executed with Safeco Insurance Company of America in the amount of $281,019.24 for the ADA Sidewalk Accessibility Improvements along Staples Street from Leopard Street to Six Points. LIST OF SUPPORTING DOCUMENTS: Location Map Change Order Summary C: \PROGRAM FILES \GRANICUS \LEGISTAR5 \ PACKET \995 CITY COUNCIL 8 21 2012 \0038 1 MEMO - CHANGE ORDER 8.DOCX File : \Mproject \councilexh \6300e.dwg NUECES BAY CORPUS CHRISTI BAY PROJECT # 6300 LOCATION MAP NOT TO SCALE FLOUR BLUFF ADA SIDEWALK ACCESSIBILITY IMPROVEMENTS ALONG STAPLES STREET FROM LEOPARD STREET TO SIX POINTS (BOND 2004) CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 ■ ■ PROJECT: APPROVED: CONTRACTOR: DEPARTMENT OF ENGINEERING SERVICES CHANGE ORDER SUMMARY SHEET August 21, 2012 ADA Accessibility Ramps — Staples Street from Leopard Street to Six Points (Project No. 6300) BOND ISSUE 2004 City Council Motion No. 2009 -015 on January 20, 2009 SLC Construction, L.P. P.O. Box 639 Conroe, TX 77305 Safeco Insurance Company of America TOTAL CONTRACT AMOUNT (January 20, 2009) $2,826,066.92 Motion No. 2009 -015 25% Limit Amount $706,516.73 Change Order No. 1 (September 28, 2009) $4,545.25 Administrative Approval Change Order No. 2 (October 30, 2009) $2,617.86 Administrative Approval Change Order No. 3 (December 10, 2009) $6,458.31 Administrative Approval Change Order No. 4 (January 12, 2010) $81,297.92 Motion No. 2010 -008 Change Order No. 5 (March 19, 2010) $0.00 Administrative Approval Change Order No. 6 (March 24, 2010) $0.00 Administrative Approval Change Order No. 7 (March 30, 2010) $105,079.68 Motion No. 2010 -067 Change Order No. 8 (August 21, 2012) $281,019.24 Motion No. M2012- TOTAL All Change Orders $481,018.26 17.02% < 25% NEW CONTRACT PRICE $3,307,085.18 C: \Program Files \Granicus \Legistar5 \Packet \995_City Council_8_21_2012 \0038_3_Change Order Summary - ADA Access Ramps Staples Street.doc AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: July 19, 2012 TO: Ronald L. Olson, City Manager FROM: Daniel Biles, P. E., Director of Engineering Services danb @cctexas.com (361) 826-3729 Valerie Gray, P.E., Director of Streets and Storm Water Services Vg ray(a� cctexas. com (361) 826 -1875 Motion to Execute Construction Contract: Williams Drive Phase 1 from Rodd Field to Nile Drive, and Williams Drive Phase 2 from Nile Drive to Airline Road (Bond 2008) CAPTION: Motion authorizing the City Manager, or designee, to execute a Construction Materials Testing Agreement with Tolunay -Wong Engineers, Inc., of Corpus Christi, Texas in the amount of $250,570 for Williams Drive Phases 1 & 2 from Rodd Field to Nile Drive and Nile Drive to Airline Road. (Bond 2008). PURPOSE: This item proposes to award a construction materials testing agreement for the rehabilitation of Williams Drive from Rodd Field to Airline Road. This project includes the removal of the existing two -lane roadway and the construction of a four -lane concrete road. City Council awarded a construction contract for this project on July 24, 2012 and this will complete the item by awarding the testing agreement. BACKGROUND AND FINDINGS: This project includes the rehabilitation of Williams Drive from Rodd Field to Airline Road. This project includes the removal of the existing two -lane roadway and the construction of a four -lane concrete road with turning lanes at each intersection, new curb and gutter, sidewalks, ADA curb ramps, bus pads, lane striping, pavement markings, street lighting, signalized intersections, and utility work to improve public safety and traffic flow in the area. This work complies with the Urban Transportation Plan for C3 (four -lane collector) street sections. This project is being phased to cause the least amount of disruption to vehicular traffic, businesses, Smith Elementary School and area residents. This agreement will provide for: • Sampling of soil materials and testing for atterberg limits and moisture /density properties • Compaction testing of soil backfill, sub - grade, fill, base, HMAC • Groundwater sampling • Proof -roll and compaction test of sub -grade • HMAC laboratory testing • Concrete monitoring and testing • Test report preparation and submittal • Related laboratory testing and sample pick -up services ALTERNATIVES: 1. Award the testing agreement as presented 2. Do not award the testing agreement (not recommended) OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: Conforms to statues regarding award of professional agreements; FY 2012 -2013 Street Capital Budget. EMERGENCY / NON - EMERGENCY: Not Applicable FINANCIAL IMPACT (2012 — 2013 CIP): ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year: 12 -13 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $2,120,000.00 $12,630,800.00 $10,001,000.00 $24,751,800.00 RTA Contribution 0.00 137,440.00 0.00 137,440.00 TOTAL BUDGET $2,120,000.00 $12,768,240.00 10,001,000.00 $24,889,240.00 Encumbered / Expended Amount 2,120,000.00 0.00 0.00 2,120,000.00 This item 250,570.00 250,570.00 Additional expenditures 0.00 10,000,000.00 7,926,084.10 17,926,084.10 BALANCE $0.00 2,517,670.00 2,074,915.90 $4,592,585.90 Fund(s): Capital / RTA Comments: The RTA contributed $137,400 for the construction of bus stops along the project route. RECOMMENDATION: Tolunay -Wong Engineers, Inc. was awarded the original geotechnical investigation work and is being recommended for the Phase 2 construction materials testing contract. They have worked on their commitment to compliance with City policy on the use of Geotechnical Engineering firms, specifically the requirement to have a locally residing professional engineer working from the local office. Tolunay -Wong has relocated a registered geotechnical engineer from their Houston office to their Corpus Christi office and therefore is now in full compliance with the City policy. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Testing Agreement PROJECT BUDGET Williams Drive Phases 1 & 2 From Rodd Field Road to Airline (BOND ISSUE 2008) Project No. 6466 & 6467 August 21, 2012 FUNDS AVAILABLE FISCAL YEAR 13: Williams Drive Phase 1 $ 2,475,000.00 Williams Drive Phase 2 5,470,000.00 RTA 137,440.00 Storm Water 12,545,600.00 Wastewater 2,569,300.00 Water 1,671,900.00 Gas 20,000.00 TOTAL FUNDS AVAILABLE $ 24,889,240.00 FUNDS REQUIRED: Construction (Reytec Resources): $ 17,714,384.10 Contingencies 1,771,438.41 Texas Department of Transportation Advance Funding Agreement 8,562.00 Consultant Fees: *Consultant (Nesmith) 1,232,714.00 * *Consultant (RVI) 1,115,640.00 Geotechnical Testing (Tolunay -Wong) 19,896.25 Materials Testing (Tolunay -Wong) THIS ITEM 250,570.00 Reimbursements: Contract Administration (Contract Preparation /Award /Admin) (1.75 %) 248,892.40 Engineering Services (Project Mgt/Constr Mgt/Traffic Mgt) (2.5 %) 373,338.60 Finance Reimbursement (1.25 %) 248,892.40 Misc. (Printing, Advertising, etc.) 20,000.00 TOTAL $23,004,328.16 ESTIMATED PROJECT BUDGET BALANCE $ 1,884,911.84 File : \ Mproject \councilexh \exh6466- 6467.dwg NUECES BAY CORPUS CHRISTI BAY N PROJECT #6466 & #6467 LOCATION MAP NOT TO SCALE FLOUR BLUFF PROJECT #6466 WILLIAMS DRIVE, PHASE 1 FROM RODD FIELD ROAD TO NILE DRIVE & PROJECT #6467 WILLIAMS DRIVE, PHASE 2 FROM NILE DRIVE TO AIRLINE CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 ■ ■ ■ fr AGREEMENT for Construction Materials Engineering Laboratory's Inspection and Materials Testing Services This AGREEMENT is between the City of Corpus Christi, Texas, a Texas home -rule municipal corporation ( "CITY "), acting through its duly authorized City Manager or designee ( "City Engineer "), and Tolunav -Wong Engineers, Inc., a Texas corporation or partnership ( "LAB "), acting through its duly authorized representative who is John January, Branch Manager, which agree as follows: 1. DECLARATIONS: "CITY" desires to engage "LAB" to provide services in connection with City's project, described as follows: Williams Drive, Phase Nos. 1 and 2 — Phase 1 from Rodd Field to Nile Drive (Project No. 6466) and Phase 2 from Nile Drive to Airline Road (Project No. 6467) (Bond 2008) ( "PROJECT ") 2. SCOPE OF WORK: "LAB" shall provide services to the PROJECT in accordance with the accompanying Scope of Services and Fee Schedule attached as "Exhibit A" and the Terms and Conditions to AGREEMENT attached as "Exhibit C ". 3. FEE: The "CITY" agrees to pay the "LAB" for services provided in accordance with Exhibit "A ", Scope of Services and Fee Schedule under this AGREEMENT, a total fee not to exceed 8250,570.00 (Two Hundred Fifty Thousand Five Hundred Seventy Dollars and Zero Cents). LAB must submit a completed Summary Sheet with each monthly invoice in the form shown as Exhibit D. Prior to approving any payment, the City must receive a correct invoice, a completed Summary Sheet, and all appropriate supporting documentation. 4. INDEMNIFICATION AND HOLD HARMLESS: "LAB" agrees to indemnify, save harmless and defend the City of Corpus Christi, and its agents, servants, and employees as more fully set forth in "Exhibit B ". 5. CITY'S DISCLOSURE OF HAZARDOUS & TOXIC MATERIALS AND CONDITIONS AT THE PROJECT SITE. To the best of the City's knowledge, based upon currently available information, the only hazardous or toxic materials, as defined by the laws an regulations of the Federal government, the state, and city which exist at the PROJECT SITE ar- as yo s: None. CITY OF CORPUS CHRISTI Oscar R. Martinez Assistant City Manager Public Works, Utilities & Transportation (Date) APPROVED AS TO FORM fN �C• � /J,iZ� Daniel i es, P.E. (Date) Director of Engineering Services Office of Management and Budget (Date) ATTEST Armando Chapa, City Secretary (Date) -WONG ENGINEERS, INC. Jo n "' = ry (Date) Branch Manager 52 3 IH 3 : Suite B -7 Corpus Christi, TX 78408 (361) 884-5050 Office (361) 884 -5052 Fax Toiunay -�Wong Engineers, Inc. 5233 III 37. Suite 1b 7 * Corpus Christie Tit * Plirmm 36t-884-5050 * Pox 361-814-5852 MATERIAL TESTING COST ESTIMATE PROPOSAL Nitty 311„ 2IDI2 havesal No:: P12 -0113 Q'tiityv C'0'irtkits Ctiriiisti Deptutficavrit arI °I ttgiateen ttg S'vuviicct so it ll 11.,COgnint1 St, Su'iiItw 3 0(0) Coma Chi's bl'Texas MIN Man iaaiat; Slle;. 11 imn 1[ iitesi, PE. Dnll facceztor Ilnmejil tntmg&mikes Rgibruneer. Ckpkit E i rt r Wit Brau li 016,,14 & 22 Fin= Raddlittal w 'Attu Point IIV t, & & i(ii'71 .'(C.ONC1CrVI, OPTION) 11 We: atm ppiluttutticdt Ito submit( t( bibi ; porstfull Ikoit• ip titfkoim iiitg, ioiatittuur i tout itnutt uuidl teNttiitlw, c3kutiir , Id6tt: utoit tbtutiilioitt ikait• kik ailnaMe: atilittentudi imitratit. pitql11141111 atutliim toxin uttikusttintiiimit, colt tdiut ipittaijautt„ Iputcolpiati xil stttaip coil's caitIt anti pmflaiktt 16 .91. *MAHE OF WORK IttiiEc atm• tntdintaittutdiiaw; tiitut t¢ tcami9uattibiaiatuuauitttniiidti ;ttt:g6ii until lilt E11E0etiktt. Ikailbxuiittgsmilax StimpiiitigoithiciiinuttiviitlissiottlititsliitglitinitInditclliniktuttilintdidittuiklintBilvimapidim •© t touailptitttiiaiit t ltiia t Jli:�uta�ii liututldd ill„siulil �ttd ;, tiil�, tltitu r;, Ill tirX ' iko ( imtntitiv ittitr:rttmiliiia ; II' iuo .1144111 ttmclicacamlpttuutfli iota* ttlicails ili}ttttdir .o. lltlitaiutlaaiyyttnliim ( iat UMiir mruniitautRitlg �►Yctta ttia : +a. ` ai ttixllpinttlpixtlintiitiauu :untdi milk aiiitttil do Rid ittttiltIittitt ixttttttyytttNiiiat ;tmtdisioni?ik piittk- i witviitus RTES As yono requested, we have provided a cost estimate for this project.. Estimated ated total east for WE items - anticipated were based on the standard TWE flee sdcdule submitted for projects WiOirItte City at Corpus C t t atiiL Any additional services ntuti shown on this proposal will no (IOW Jaw-m(1:1nm with stactiatnI fee Sirtconelyc TOL Y V,WOI G ENGINEERS, INC, 11 ko.L 1F-1124 Ein(kawwut : (io #t ( Itlintrafie; Pimpled l .[[li/falk: CONSTRUCTION MATERIALS TESTING COST ESTIMATE PROPOSAL Cost Estimate for iVilliarns Drive, Phase Nos. 1 & 2 From L ocldfield - Airline Project No. 6466 & 6467 (CONCRETE OPTION) Description of Services Souks Saaals To zEmitiori Moistimilltensiity Relations,. A ' IN El 693 Attellime, Limits Compessive Stitortgen Stalin ii ll Saud V htek Chew lItcloopmannit 1Piva ittelt lEitgjialaut /l �I;lhIif('11i�lsliiir ; Quantity Unit U Fee Unit 3500 CCU I10 500 38.00 ICU' C4O.00 48.00 ea e 38.00 day A r 3308. .te Alsoun 42(0) „ „(00 = 11 ,i4X0Y0).0 ) 4 11115.00} en 114600B 1 1(03 36.0(0) 30,400 llXOM 11 33.00 crttt KA(OXM 11(00 1k2.20 Ihcr 33,.240020) 11210} 36.0D cI ' 4,501010:0) **Wall WARM II(OXO) 8 t11JI0) Hu. ,Shi ttctall etunitittly Alidtt 1F Mrili Amour* 1I(OXQ) NOM Ilir $11‘ NO) OM ?? 1121111M) curt 2111110R 413Q0-Th w t 80p1)) 4111111) curt li ){)T,1) 2 MIRE» um 001 71. Lumen um )( p 71 mein cars 72I10NO) ix» MOE clay BOMB Strllit ltril l 9)1211111[» Subarade Testing Soil Technician Sieve Analysis Moisture/Density Relations, ASTM D 1557 Atterberg Limits Groundwater Testing Base Line Testing Additional Testing (if needed) 400 38.00 hr $15,200.00 50 60.00 ea 3,000.00 10 140.00 ea 1,400.00 10 42.00 ea 420.00 Subtotal 520,020.00 3 1,000.00 ea $3,000.00 2 1,000.00 ea 2,000.00 Subtotal $5,000.00 Total 5250,570.00 Exhibit B Mandatory Requirements (Revised August, 2008) INDEMNIFICATION AND HOLD HARMLESS Consultant agrees to indemnify, save harmless and defend the City of Corpus Christi, and its agents, servants, and employees, and each of them against and hold it and them harmless from any and all lawsuits, claims, demands, liabilities, losses and expenses, including court costs and attorneys' fees, for or on account of any injury to any person, or any death at any time resulting from such injury, or any damage to any property, which may arise or which may be alleged to have arisen out of or in connection with the work covered by this contract. The foregoing indemnity shall apply except if such injury, death or damage is caused by the sole or concurrent negligence of the City of Corpus Christi, its agents, servants, or employees or any other person indemnified hereunder. EXHIBIT "B" Page 1 of 1 TERMS AND CONDITIONS TO AGREEMENT ARTICLE 1. SERVICES: "LAB" will: 1.1 Provide only those services requested by "CITY ENGINEER" that, in the opinion of "LAB ", lie within the technical or professional areas of expertise of "LAB" and which "LAB" is adequately staffed and equipped to perform. 1.2 Perform technical services under the supervision of a licensed professional engineer and in compliance with the basic requirements of the appropriate standards of the American Society for Testing and Materials, where applicable, and other standards designated in writing by the "CITY ENGINEER." 1.3 Promptly submit formal reports (printed and electronic copies) of tests, inspections and services performed indicating, where applicable, compliance with the PROJECT specifications or other contract documents. Such reports must be complete and factual, citing the tests performed, methods employed, values obtained, and parts of the structure of THE PROJECT area subjected to any testing. 1.4 Utilize testing equipment which has been calibrated according to applicable standards and, upon request, submit to the "CITY ENGINEER ", or his authorized representative, documentation of such calibration. Secure representative samples of those materials that the City's Contractor proposes to use which require testing, together with relevant data concerning such materials including the point of origin and supplier. 1.5 Consider reports to be confidential, and distribute reports only to those persons, organizations or agencies specifically designated in writing by the "CITY ENGINEER ". 1.6 Retain records relating to services performed for "CITY" for a period of two years following submission of any reports, during which period the records will be made available to the "CITY" at all reasonable times. 1.7 Pay salaries, wages, expenses, social security taxes, federal and state unemployment taxes, and any other similar payroll taxes relating to the services. ARTICLE 2. CITY RESPONSIBILITIES: City Engineer or authorized representative will: 2.1 Provide "LAB" with all plans, specifications, addenda, change orders, approved shop drawings and other information for the proper performance of services by "LAB ". 2.2 Issue authorization in writing giving "LAB" free access to THE PROJECT site, and to all shops or yards where materials are prepared or stored. 2.3 Designate in writing those persons or firms which will act as the "CITY's" representative with respect to "LAB'S" services to be performed under this AGREEMENT and which must be promptly notified by "LAB" when it appears that materials tested or inspected are in non- compliance. Only the "CITY ENGINEER" or his designated representative have authority to transmit instructions, receive information and data, interpret and define the CITY's policies and decisions with respect to THE PROJECT. "LAB" acknowledges that certain "CITY" representatives may have different types of authority concerning THE PROJECT. 2.4 Advise "LAB" sufficiently in advance of any operations so as to allow for assignment of personnel by "LAB" for completion of the required services. Such advance notice will be in accordance with that established by mutual agreement of the parties. EXHIBIT "C" Page 1 of 3 2.5 Direct THE PROJECT contractor, either by the Construction Contract or direct written order to: (a) Stop work at the appropriate times for "LAB" to perform contracted services; (b) Furnish such labor and all facilities needed by "LAB" to obtain and handle samples at THE PROJECT and to facilitate the specified inspection and tests; (c) Provide and maintain for use of "LAB" adequate space at THE PROJECT for safe storage and proper curing of test specimens which must remain on THE PROJECT site prior to, during, and up to 60 days after testing. ARTICLE 3. GENERAL CONDITIONS 3.1 "LAB ", by the performance of services covered hereunder, does not in any way assume, abridge or abrogate any of those duties, responsibilities or authorities with regard to THE PROJECT which, by custom or contract, are vested in THE PROJECT architects, design engineers, or any other design agencies or authorities. 3.2 "LAB" is not authorized to supervise, alter, relax, enlarge or release any requirement of THE PROJECT specifications or other contract documents nor to approve or accept any portion of the work. "LAB" does not have the right of rejection or the right to stop the work. "CITY ENGINEER" will direct THE PROJECT contractor to stop work at appropriate times for "LAB" to conduct the sampling, testing, or inspection of operations covered by the AGREEMENT. ARTICLE 4. FIELD MONITORING AND TESTING 4.1 "CITY" and "LAB" agree that "LAB" will be on -site to perform inspections for contracted services. The "CITY" and "LAB" also agree that "LAB" will not assume responsibility for PROJECT Contractor's means, methods, techniques, sequences or procedures of construction, and it is understood that the final services provided by "LAB" will not relieve the PROJECT Contractor of his responsibilities for performing the work in accordance with THE PROJECT plans and specifications. For the purposes of this AGREEMENT, the word "inspection" is used to mean periodic observation of the work and the conducting of tests by "LAB" as specified in the AGREEMENT. Continuous monitoring by "LAB" or its subcontractors does not mean that "LAB" is approving placement of materials. Inspection is not and should not be construed to be a warranty by "LAB" to the "CITY" or any other party. 4.2 Samples collected or tested by "LAB" remain the property of the "CITY" while in the custody of the "LAB ". "LAB" will retain the samples for a period of 60 days following the date of submission of any report related to the sample. Following the retention period, "LAB" will dispose of non- hazardous samples, and return hazardous, acutely toxic, or radioactive samples and samples containers and residues to "CITY ". "CITY" agrees to accept such samples and samples containers. ARTICLE 5. STANDARD OF CARE AND WARRANTY Services performed by "LAB" will be conducted in a manner consistent with that level of care and skill ordinarily exercised by reputable members of the profession currently practicing under similar conditions in the same locality. No other warranty either expressed or implied is made or intended by the AGREEMENT or any reports. "LAB" will not be responsible for the interpretation or use by others of data developed by "LAB ". ARTICLE 6. SAFETY "CITY" and "LAB" agree that, in accordance with the generally accepted construction practice, the PROJECT'S general contractor will be solely and completely responsible for working conditions on THE PROJECT, including safety of all persons and property during the performance of the work, and for EXHIBIT "C" Page 2 of 3 compliance with all municipal, state, and federal laws, rules and regulations, including OSHA. The duty of "LAB" in providing services is not, therefore, to include any review of, or responsibility for, the adequacy of the PROJECT'S general contractor's safety measures in, on, or near THE PROJECT site. ARTICLE 7. INVOICES AND PAYMENT "LAB" will submit progress invoices to "CITY ENGINEER" monthly and final invoice upon completion of services. Each invoice is due and payable by "CITY" within 30 days of receipt and approval to pay by the City Engineer. ARTICLE 8. EXTENT OF AGREEMENT 8.1 This AGREEMENT, including Exhibit "A" and these terms and conditions, represents the entire AGREEMENT between "CITY" and "LAB" and supersedes all prior negotiation, representations or agreements, written or oral. This AGREEMENT may be amended only by a written instrument signed by duly authorized representative of "CITY" and "LAB ". If any conflict occurs between these terms and conditions and this AGREEMENT, these terms and conditions are controlling. 8.2 In the event that any one or more of the provisions contained in this AGREEMENT are for any reason held invalid, illegal or unenforceable in any respect, the remaining terms will be in full effect and this AGREEMENT will be construed as if the invalid or unenforceable matters were never included in this AGREEMENT. No waiver of any default will be a waiver of any future default. 8.3 Neither party will assign this AGREEMENT without the express written approval of the other, but "LAB" may subcontract laboratory procedures as "LAB" deems necessary to meet the obligations of this AGREEMENT. EXHIBIT "C" Page3of3 Basic Services: Investigations & Analysis Report Additional Services: Testing & Inspection Subtotal Additional Services Summary of Fees Basic Services Fees Additional Services Fees Total of Fees COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date: Total Amount Previous Total Percent Contract Amd No. 1 Amd No. 2 Contract Invoiced Invoice Invoice Complete $1,000 $0 $0 $1,000 $0 $1,000 $1,000 100% 2,000 1,000 0 3,000 1,000 500 1,500 50% $3,000 $1,000 $0 $4,000 $750 $1,500 $2,500 63% $2,000 $0 $0 $2,000 $500 $0 $500 25% $2,000 $0 $0 $2,000 $500 $0 $500 25% $3,000 $1,000 $0 $4,000 $750 $1,500 $2,500 63% 2,000 0 0 2,000 500 0 500 25% $5,000 $1,000 $0 $6,000 $1,250 $1,500 $3,000 50% CONTRACT FOR TESTING SERVICES AGREEMENTS EXHIBIT "D" Page 1 OF 1 Last Revision: June 2012 FILING REQUIREMENTS If a person who requests official action on a matter knows that the requested action will confer an economic benefit on any City official or employee that is distinguishable from the effect that the action will have on members of the public in general or a substantial segment thereof, you shall disclose that fact in a signed writing to the City official, employee or body that has been requested to act in the matter, unless the interest of the City official or employee in the matter is apparent. The disclosure shall also be made in a signed writing filed with the City Secretary. [Ethics Ordinance Section 2-349 (d)] CERTIFICATION I certify that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld disclosure of any information requested; and that supplemental statements will be promptly submitted to t "'City of Corpus Christi, Texas as changes occur. Certifying Person: John Jan y a Title: Branch Manager (Type or Print Signature of Certifying Date: Person: S% DEFINITIONS a. "Board member." A member of any board, commission, or committee appointed by the City Council of the City of Corpus Christi, Texas. b. "Economic benefit ". An action that is likely to affect an economic interest if it is likely to have an effect on that interest that is distinguishable from its effect on members of the public in general or a substantial segment thereof. c. "Employee." Any person employed by the City of Corpus Christi, Texas either on a full or part -time basis, but not as an independent contractor. d. "Firm." Any entity operated for economic gain, whether professional, industrial or commercial, and whether established to produce or deal with a product or service, including but not limited to, entities operated in the form of sole proprietorship, as self-employed person, partnership, corporation, joint stock company, joint venture, receivership or trust, and entities which for purposes of taxation are treated as non - profit organizations. e. "Official." The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus Christi, Texas. f. "Ownership Interest." Legal or equitable interest, whether actually or constructively held, in a firm, including when such interest is held through an agent, trust, estate, or holding entity. "Constructively held" refers to holdings or control established through voting trusts, proxies, or special terms of venture or partnership agreements." g. "Consultant." Any person or firm, such as engineers and architects, hired by the City of Corpus Christi for the purpose of professional consultation and recommendation. IEXHIBIT "E" Page 2 of 2 AGENDA MEMORANDUM Future Item for the City Council Meeting of 8/21/2012 Action Item for the City Council Meeting of 8/28/2012 DATE: August 20, 2012 TO: Ronald L. Olson, City Manager FROM: Daniel Biles, P.E., Director of Engineering Services danb @cctexas.com; 826 -3729 Gustavo Gonzalez, P.E., Director of Water Operations gustavogo @cctexas.com; 826 -1874 Approval of Professional Services Contract for the Water Program Management Project CAPTION: Motion authorizing the City Manager, or designee, to execute a Contract for Professional Services with URS Corporation of Corpus Christi, Texas in the amount of $300,000.00 for the Water Program Management Project. PURPOSE: The purpose of this item is to ensure that the technical, fiscal and operational aspects of all Capital Improvement Projects for the Water Department are fully funded and managed on a full - time basis, to include integration with maintenance and repair projects. BACKGROUND AND FINDINGS: The City is undertaking a number of current and future potable water projects to enhance system reliability and capacity. This project provides a mechanism to fund programmatic planning, oversight and implementation of capital improvement projects. This project will provide a holistic approach to the management of projects and consider efficient project sequencing and overall master planning for the water program. In order to properly manage these projects, the individual or group of individuals must have comprehensive knowledge and experience in Surface Water Treatment (to include raw water pump stations) and Water Distribution Systems; project management; and program management. ALTERNATIVES: 1. Award the contract to URS Corporation as outlined herein. 2. Do not award the contract. OTHER CONSIDERATIONS: The project manager resides in Corpus Christi, Texas and will serve as the principal agent for the project. Local staff and outside expertise will be used as needed to satisfy the program objectives. The majority of work is anticipated to be performed by local staff though. URS Corporation will not engage in work without the prior authorization of the City of Corpus Christi. CONFORMITY TO CITY POLICY: Conforms to statutes regarding Request for Qualifications process and the FY2012 -2013 Capital Budget. This consultant was selected by the City through Request for Qualifications 2011 -05 solicitation. EMERGENCY / NON - EMERGENCY: Not Applicable DEPARTMENTAL CLEARANCES: Water Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year: 2012 -2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $900.00 $599,100.00 $600,000.00 $1,200,000.00 Encumbered / Expended Amount $900.00 $900.00 This item $300,000.00 $0.00 $300,000.00 Future Expenditures $44,100.00 $45,000.00 BALANCE $0.00 $255,000.00 $600,000.00 $855,000.00 Fund(s): Water CIP Revenue Bond Comments: This project is No. WA 01 in the 2012 -2013 Capital Improvement Planning Guide. RECOMMENDATION: City Staff recommends the contract be awarded to URS Corporation of Corpus Christi, Texas, in the amount of $300,000.00 for the Water Program Management Project. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map PROJECT BUDGET Water Program Management Project No. E11069 August 21, 2012 FUNDS AVAILABLE: Water CIP TOTAL AVAILABLE: FUNDS REQUIRED: Consultant Fees: Consultant (URS Corporation) Reimbursements: Contract Administration (Contract Preparation /Award /Admin) Finance Reimbursements Misc. (Printing, etc.) $ 1,200,000.00 $ 1,200,000.00 $ 300,000.00 $ 24,000.00 $ 15,000.00 $ 6,000.00 TOTAL $ 345,000.00 ESTIMATED PROJECT BUDGET BALANCE $ 855,000.00 \Mproject \councilexhibits \exhE1 1069. dwg F.M. 624 C0RTUS C.3-110-S17 B_4t1 NOTE: CITY WIDE PROGRAM PROJECT # E11069 F. LAGUNA MAiJRE FM 2444 Air co vQ (MU Of Qe° MEXICO LOCATION MAP NOT TO SCALE WATER PROGRAM MANAGEMENT CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 A/E AGREEMENT for Architect/Engineer Consultant Services This AGREEMENT is between the City of Corpus Christi, Texas, a Texas home -rule municipal corporation, "CITY ", acting through its duly authorized City Manager or designee ( "City Engineer"), and URS CORPORATION, a Nevada corporation, acting through its duly authorized representative who is Jeff Edmonds, P.E., Branch Manager (CONSULTANT), which agree as follows: 1. DECLARATIONS. "CITY" desires to engage "CONSULTANT" to provide services in connection with City's project, described as follows: Water Program Management (Project No. E11069) (PROJECT). 2. SCOPE OF WORK. "CONSULTANT" shall provide services for the "PROJECT" in accordance with the accompanying Letter, Scope of Services, and Fee attached as "Exhibit A ". 3. FEE. The "CITY" agrees to pay the "CONSULTANT" for services provided in accordance with Exhibit "A ", Scope of Services, and Fee under this AGREEMENT, a fee not to exceed 12simagg (Three Hundred Thousand Dollars and Zero Cents), 4. INDEMNIFICATION AND HOLD HARMLESS. The "CONSULTANT" agrees to indemnify, save harmless and defend the "CITY", and it's agents, servants, and employees as more fully set forth in "Exhibit B-1". 5. The Term of this Agreement begins on the day it is signed by the City. The City, by and through its City Manager or designee, may extend the Agreement at each calendar year by one year upon agreement of both parties. Payment terms are net 30 days. CITY OF CORPUS CHRISTI URS CORPORATION Oscar R. Martinez Assistant City Manager RECOMMENDED Daniel Biles, P.E. tor of E 3Aes 1 g,9. tZ (Date) Dan Werth, (Date) Vice President 711 North Carancahua, Suite 1620 Corpus Christi, TX 78475 (361) 884-7140 e ce (361 888- 10/;°// (Date) eff Edmonds, P.E. ne-ring Services Branch Manager S 11 e a, ]C?, / ting Depart ent (Date) Office of Mgmt and Budget (Date) ( / ate) Project Number: E11069 Funding Source: 550950- 4088 - 00000- E11069 Encumbrance Number: 119b 141&12. 0:\ Documents and Seltingsl5ammy_Yo"ngTocal Senings'Trmporary Internet FilestContent.0u110ok15L99F710 AE Agreement.docx h May 29, 2012 Mr. Bill Green, PE City of Corpus Christi Engineering Services P.O. Box 9277 Corpus Christi, Texas 78401 Subject: Water Program Management Services E10144 Dear Mr. Green: BACKGROUND: The City is undertaking a number of current and future potable water projects to enhance system reliability and capacity. There is a desire to improve planning, prioritization and integration of water capital improvements projects. The City published the 2011 -05 Professional Services Solicitation in November of 2011. That solicitation included Project No. E11069, Water Program Management Services. URS submitted a statement of qualifications to provide those services on December 22, 2011. We were notified of our selection as the most qualified firm for Project No. E11069 on April 11, 2012. This transmittal represents URS' proposal for Program Management Services under the 2011 -05 solicitation. SCOPE OF WORK: URS proposes to provide a wide range of Program Management and consulting services related to the potable water capital improvements program. These services can be described as functioning as an extension of the City of Corpus Christi staff to enhance alignment and control of project delivery within the Water Capital Improvements Program. This section will discuss the types of services that URS proposes to provide. Work will be provided as directed by the City of Corpus Christi project manager as described in written Work Authorizations. URS will not engage in work without the prior authorization of the City of Corpus Christi. Compensation will be as described under "Fees" on page 3 of 4. Develop Program Management Plan (PMP): An important early step in the process is to develop a Program Management Plan. This document will not only set the internal URS framework for operating the program, it will establish standards for use by any service provider working under the water program. Some key issues to be addressed in the PMP are information flow, decision management and an issue escalation plan. Program Management: URS will provide management services to help ensure that overarching objectives of the Water Capital Improvements Program are achieved. These services will be provided by an experienced program manager and other support staff on an as- needed basis. The types of activities under general program management include coordination of URS Corporation 711 North Carancahua, Suite 1620 Corpus Christi, TX 78475 Tel: 361 - 884 -7140 Fax: 361 -888 -4169 www.urscorp.com EXHIBIT "A" Page 1 of 4 Page 2 of 4 information flow, schedule tracking, expediting decisions, budget monitoring and providing enhanced programmatic controls. Coordination: URS will conduct project management meetings to ensure that proper coordination occurs between city departments, individual design efforts and other program stakeholders. Regular meetings will be scheduled and attended by the URS' PM who shall coordinate information flow between project stakeholders. The URS PM will also be available to conduct or attend executive briefings as required. Standardization of Design Contracting: Significant benefits could be realized by implementing standard procedures. Standard procedures can help expedite reviews, avoid duplicated effort and enhance final project outcomes. The PMP will include the development of standardized scopes of work, design procedures, uniform deliverable contents, quality expectations and contract documents. Master Scheduling: URS will maintain a master program schedule to track the progress of individual projects as well as cross - project dependencies. Master scheduling will help keep projects on schedule and improve the coordination between project teams, with outside entities and regulatory agencies. Programming Documents: URS will assist the City to develop strategic programming documents that will be used for high level. planning. These documents will assist with project formulation, prioritization, sequencing, budgeting. Independent Peer Review: URS will provide technical peer reviews of design documents at key project milestones. To avoid conflicts of interest, URS will not be called upon to provide actual design services under this contract. We will reach out periodically to subject matter experts within URS to review the work of design consultants and provide comments and suggestions for improving project outcomes. Cost Estimating: URS can provide budgetary cost estimates for programming purposes as well providing peer review of engineer's estimates that are completed by the design consultants. Technical Consultation: URS will provide technical consultation on an as- needed basis by recognized subject matter experts. When tasked with providing expert technical consultation, the URS PM will determine the EXHIBIT "A" Page 2 of 4 Page 3 of 4 appropriate type of expertise required and screen candidates within URS to identify the best individual for each technical consultation. The deliverables for technical consultations- will - typically -be letter reports Value Engineering Studies: URS will work with the City's Project Manager to identify individual projects for complete VE studies. At the appropriate design milestone (typically 35 %), a URS facilitator will then lead a team of independent professionals through a five -step process following the SAVE International methodology for producing project improvements. Project stakeholders will select the alternatives or recommendations likely to have the greatest potential for project improvements. These alternatives are then incorporated into the program and managed through implementation. Procurement Strategy Development: Recent legislation has broadened local governments' ability to utilize alternative project procurement strategies beyond the traditional design, bid, build approach. URS will assist the project stakeholders with the evaluation of available procurement strategies and the recommendation of strategies best suited to individual projects. WORK AUTHORIZATIONS: URS agrees to undertake and perform certain consulting and professional engineering services ( "Services ") in accordance with the terms and conditions contained herein, as may be requested by Client from time to time. URS will provide written estimates for blocks of work and not proceed until written authorization from the City is received. URS will immediately notify the City when nearing the budget ceiling on any work authorization and will not exceed the ceiling without prior written authorization. The Services to be performed, URS's compensation, and the schedule for performance for each task shall be described in one or more authorizations issued to URS by the City of Corpus Christi in the form of Work Authorization. A Work Authorization shall be valid and binding upon the Parties only if accepted in writing by the City and URS. Each duly executed Work Authorization shall be subject to the terms and conditions of this Agreement, except to the extent expressly modified by the Work Authorization. FEES: URS will perform services under this contract based on the method stipulated in the Work Authorization. Work Authorizations will establish either a Time and Material or Lump Sum fee basis. The initial rate schedule is attached. Since this is proposed to be a multi -year effort, the labor rates will be escalated at the start of each calendar year at the consumer price index for the previous year as published by the U.S. Bureau of Labor Statistics. Other subcontract and other direct costs will be reimbursed at cost plus 10 %. EXHIBIT "A" Page 3 of 4 Page 4 of 4 SCHEDULE: Schedules will be established for deliverables as they are defined in each Work Authorization. It is anticipated that some aspects of URS' work will take the form of period costs for normal weekly operating- activities. Other- activities will be discrete- deliverables -with a defined due date such as a peer review report or value engineering study. Schedules will be negotiated individually for discrete deliverables. Should you wish to discuss this matter further, please do not hesitate to contact me at 361 -884 -7140. Sincerely, URS Corporatio Jeff Edmonds, P.E. Branch Manager Attachments: Rate Schedule Sample Work Authorization T &M Sample Work Authorization Lump Sum Pre - negotiated Indemnity Language EXHIBIT "A" Page 4 of 4 EXHIBIT "B" MANDATORY INSURANCE REQUIREMENTS & INDEMNIFICATION FOR AIE PROFESSIONAL SERVICES/CONSULTANT SERVICES (Revised October 2010) -- (Negotiated revision approved by the City and URS Corporation, July 2012) A. Consultant must not commence work under this agreement until all insurance required herein has been obtained and such insurance has been approved by the City. The Consultant must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been obtained. B. Consultant must furnish to the City's Risk Manager, two (2) copies of Certificates of Insurance, showing the following minimum coverages by insurance company(s) acceptable to the City's Risk Manager. The City must be named as an additional insured for all liability policies except for Worker' Compensation and Professional Liability Insurance and a blanket waiver of subrogation is required on all applicable policies. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -Day Written Notice of Cancellation, non - renewal or material change required on all certificates Bodily Injury & Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Broad Form 2. Premises - Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors $1,000,000 COMBINED SINGLE LIMIT AUTOMOBILE LIABILITY to included 1. Owned vehicles 2.. Hired -- Non -owned vehicles $1,000,000 COMBINED SINGLE LIMIT PROFESSIONAL LIABILITY including: Coverage provided shall cover all employees, officers, directors and agents 1. Errors and Omissions $1,000,000 per claim / $2,000,000 aggregate (Defense costs not included in face value of the policy) If claims made policy, retro date must be prior to inception of agreement; have extended reporting period provisions and identify any limitations regarding who is an Insured WORKERS' COMPENSATION EMPLOYERS' LIABILITY Which Complies with the Texas Workers Compensation Act 500,000/500,0001500,000 EXHIBIT "B" Page 1 of 3 C:1Documents and Sellings\Sammy_YounglLocal Sellings\Temporary Internet Files \Content.Outlook15L99F71O1LARGE AE EXHIBIT B -OCT 2010.00CX C. In the event of accidents of any kind, Consultant must furnish the Risk Manager with copies of all reports within (10) ten days of accident. D. Consultant must obtain workers' compensation coverage through a licensed insurance company in accordance with Texas law. The contract for coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The coverage provided must be in amounts sufficient to assure that all workers' compensation obligations incurred will be promptly met. E. Consultant's financial integrity is of interest to the City; therefore, subject to Successful Consultant's right to maintain reasonable deductibles in such amounts as are approved by the City, Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written , by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A -VII. F. The City shall be entitled, upon request and without expense, to receive a certificate of insurance c0p105 of -the policies, declarations pogo and all endorsements thereto as they apply to the limits required by the City, . Consultant shall be required to comply with any such requests and shall submit a copy of the replacement certificate of insurance to City at the address provided below within 10 days of the requested change. Consultant shall pay any costs incurred resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Risk Management P.O. Box 9277 Corpus Christi, TX 78469 -9277 Fax: (361) 826 -4555 G. Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: i. Name the City and its officers, officials, employees, volunteers, and elected representatives as additional insured by endorsement, as respects operations and activities of, or on behalf of, the named insured performed under contract with the City, with the exception of the workers' compensation and professional liability polices; ii. Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; iii. Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and EXHIBIT "B" Page 2 of 3 C:\Documents and SeilingstSammy_YounyLocol Settings \Temporary Internet Fites \Content.Outlook15L99F71OLLARGE AF EXHIBIT B -OCT 2010.00CX iv. Provide thirty (30) calendar days advance written notice directly to City of any suspension, cancellation, non - renewal or material change in coverage, and not less than ten (10) calendar days advance written notice for nonpayment of premium. H. Within five (5) calendar days of a suspension, cancellation, or non - renewal of coverage, Successful Consultant shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. I. In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Consultant to stop work hereunder, and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. J. Nothing herein contained shall be construed as limiting in any way the extent to which Successful Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of the work covered under this agreement. K. It is agreed that Consultant's insurance shall be deemed primary and non - contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. L. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. INDEMNIFICATION AND HOLD HARMLESS URS Specific Language negotiated with the City of Corpus Christi, Exhibit B -1 EXHIBIT "B" Page 3 of 3 C:IOocuments and Sellings\Sammy YounglLocal SetlingslTemporary Internet Files1Content .OuIIook15L99F71OtLARGE AE EXHIBIT B -OCT 2010.00CX URS SPECIFIC INDEMNIFICATION LANGUAGE The following language was previously negotiated for use on URS -City of Corpus Christi professional service agreements: INDEMNIFICATION AND HOLD HARMLESS To the extent permitted by law, Consultant agrees to indemnify, save harmless and defend the City of Corpus Christi, and its officers, agents, servants and employees, and each of them against and hold it and them harmless from any and all lawsuits, claims, demands, liabilities, losses and expenses, including court cost and reasonable attorneys' fees, for or on account of any injury to any person, or any death at any time resulting from such injury, or any damage to any property, to the extent caused by Consultant's negligent performance of services covered by this contract. The foregoing indemnity shall apply except to the extent such injury, death or damage is caused by the sole or concurrent negligence of the City of Corpus Christi, its officers, agents, servants, or employees, or any other person indemnified hereunder. EXHIBIT "B -1" Page 1 of 1 City of us CfuSsti - - SUPPLIER BE ASINED BY CITY PURCHASING DIVISION CITY OF CORPUS CHRISTI DISCLOSURE -OF- INTEREST City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City to provide the following information. Every question must be answered. If the question is not applicable, answer with "NA ". See reverse side for Filing Requirements, Certifications and definitions. COMPANY NAME: URS Corporation P. O. BOX: STREET ADDRESS: 711 N. Carancahua, Suite 1620 CITY: Corpus Christi ZU': 78475 FIRM IS: I. Corporation 4. Association 2. Partnership 8 5. Other 3. Sole Owner 0 DISCLOSURE QUESTIONS If additional space is necessary, please use the reverse side of this age or attach separate sheet. 1. State the names of each employee of the City of Corpus Christi having an `ownership interest" constituting 3% or more of the ownership in the above named "firm." NIA ame Job Title and City Department (if known) 2. State the names of each "official" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name Title N/A 3. State the names of each "board member" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm" N/A Name Board, Commission or Committee 4. State the names of each employee or officer of a "consultant" for the City of Corpus Christi who worked on any matter related to the subject of this contract and has an "ownership interest" constituting 3°i or more of the ownership in the above named "firm." Name Consultant N/A EXHIBIT "C" Page 1 of 2 FILING REQUIREMENTS If a person who requests official action on a matter knows that the requested action will confer an economic benefit on any City official or employee that is distinguishable from the effect that the action will have on members of the public in general or a substantial segment thereof, you shall disclose that fact in a signed writing to the City official, employee or body that has been requested to act in the matter, unless the interest of the City official or employee in the matter is apparent. The disclosure shall also be made in a signed writing filed with the City Secretary. [Ethics Ordinance Section 2 -349 (d)] CERTIFICATION 1 certify that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld disclosure of any information requested; and that supplemental statements will be promptly submitted to the City of Corpus Christi, Texas as changes occur. Certifying Person: Jeff Edmonds, P. E. (Type or Print) Signature of Certifying Person: Title: Branch Manager DEFINITIONS Date: Ve5/7_ a. `Board member." A member of any board, commission, or committee appointed by the City Council of the City of Corpus Christi, Texas. b. "Economic benefit ". An action that is likely to affect an economic interest if it is likely to have an effect on that interest that is distinguishable from its effect on members of the public in general or a substantial segment thereof. c. "Employee." Any person employed by the City of Corpus Christi, Texas either on a full or part - time basis, but not as an independent contractor. d. "Firm." Any entity operated for economic gain, whether professional, industrial or commercial, and whether established to produce or deal with a product or service, including but not limited to, entities operated in the form of sole proprietorship, as self - employed person, partnership, corporation, joint stock company, joint venture, receivership or trust, and entities which for purposes of taxation are treated as non - profit organizations. e. "Official." The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus Christi, Texas. f. "Ownership Interest." Legal or equitable interest, whether actually or constructively held, in a firm, including when such interest is held through an agent, trust, estate, or holding entity. "Constructively held" refers to holdings or control established through voting trusts, proxies, or special terms of venture or partnership agreements." g. "Consultant." Any person or firm, such as engineers and architects, hired by the City of Corpus Christi for the purpose of professional consultation and recommendation. EXHIBIT "C" Page 2 of 2 Basic Services: Preliminary Phase Design Phase Bid Phase Report Phase Construction Phase Program Management Subtotal Basic Services Additional Services: Permitting Warranty Phase Inspection Platting Survey Reporting 0 & M Manuals SCADA Subtotal Additional Services Summary of Fees Basic Services Fees Additional Services Fees Total of Fees SAMPLE Water Program Management Project No. E11069 Invoice No. 12345 Invoice Date: Total Amount Previous Total Percent Contract Amd No. 1 Amd No. 2 Contract Invoiced Invoice Invoice Complete $0 $0 $0 $0 $0 $0 $0 n/a ., 0 0 0 0 - 0 0 n/a 0 0 0 0 0 0 0 n/a 0 0 0 0 0 0 0 n/a n/a !, 0 0 0 0 0 0 0 300,000 0 0 300,000 150,000 0 150,000 50% $300,000 $0 $0 $300,000 $0 $0 $150,000 ! 50% $0 $0 $0 $0 $0 $0 $0 n/a 0 0 0 0 0 0 0 n/a 0 0 0 0 0 0 On/a 0 0 0 0 0 0 . O n/a 0 0 0 0 0 0 On/a TBD TBD. TBD TBD TBD TBD TBD 0% TBD TBD TBD TBD TBD TBD TBD 0% $0 $0 $0 $0 $0 $0 $0 0% $300,000 $0 $0 $300,000 $0 $0 $150,000 I 50% 0 0 0 0 0 0 0 ' 0% 1 $300,OOO $0 $0 $300,000 $0 $0 $150,000 ! 50% Schedule of Hourly Rates for Project E10144: Water Program Management Services 2012 Hourly Labor Category Rate Corporate Principal 191 Program Manager 174 Sr. Engineer /Sr. Scientist/Chief Estimator 161 Engineer /ScientistiConstructability Reviewer 139 Staff Engineer (PE) /Scientist/Scheduler 116 Sr. Cost Estinator /Jr. Engineer (PE) 110 Project Financial Administrator 90 Sr. CADD Designer /GIS SpecialistIEIT 89 CADD Technician /Scheduler Assistant 81 Junior Estimator 72 Admin. Assistant/Writer 60 Note: Engineer Classifications include civil, structural, coastal, geotechnical, electrical, mechanical, and environmental disciplines. Charges for equipment, services, and supplies not furnished directly by URS Corporation and any items of expense not customarily incurred in our normal operations, are computed as follows: Notes: 1. Cost plus 10 percent for other shipping charges, professional services, subsistence, transportation, printing, and reproduction, miscellaneous supplies, and rentals. 2. Cost plus 10 percent for surveying services, land drilling equipment, construction equipment, testing laboratories, and contract labor. 3. Cost plus 10 percent for vehicle, aircraft, watercraft, helicopter, and marine drilling equipment and operation. 4. Mileage, per diem, and lodging will be reimbursed at cost plus 10 %. 5. Labor rates for subcontractors will be charged consistent with URS' proposed labor rates and will be invoiced at cost plus 10 %. 6. A new rate table will go into effect at the beginning of each calendar year. The rates will be accelerated based on the CPI for the previous calendar year. _EXHIBIT "E" Page 1 of 1 City of Corpus Christi City of Corpus EF F Christi Project Scope Project Objective • To provide continuity in management and oversight over the design and construction of multiple projects within the ON Stevens plant. • Maintain project sequencing to avoid conflicts. • Peer review of technical processes and mechanical improvements FUNDS AVAILABLE: Water CIP TOTAL AVAILABLE: FUNDS REQUIRED: Consultant Fees: Consultant (URS Corporation) Reimbursements: Contract Administration (Contract Preparation/Award/Admin) Finance Reimbursements Misc. (Printing, etc.) TOTAL ESTIMATED PROJECT BUDGET BALANCE Project Budget $1,200,000.00 $1,200,000.00 $ 300,000.00 $ 24, 000.00 $ 15, 000.00 $ 6,000.00 $ 345, 000.00 $ 855,000.00 AGENDA MEMORANDUM Future Item for the City Council Meeting of August 21, 2012 Action Item for the City Council Meeting of August 28, 2012 DATE: August 10, 2012 TO: Ronald L. Olson, City Manager FROM: Tom Tagliabue, Director, Intergovernmental Relations tomtag@cctexas.com 361.826.3850 Resolution opposing the U.S. Department of the Interior's Idle Iron policy and supporting both H.R. 6208 (the REEFS Act) and S. 1555/H.R. 3429 (the Rigs to Reef Habitat Protection Act). CAPTION: Resolution opposing the U.S. Department of the Interior's Idle Iron policy and supporting both H.R. 6208 (the "Retaining Essential Environmental Fishing Structures Act' or REEFS Act) and S. 1555/H.R. 3429 (the Rigs to Reef Habitat Protection Act). PURPOSE: The resolution expresses the City of Corpus Christi's (City) opposition to a federal administrative action that will do irreparable damage to on an extensive range of marine fisheries and ecosystems if the U.S. Department of the Interior removes artificial reefs from the Gulf of Mexico. In addition, the resolution expresses support for two federal bills — H.R. 6208 (the "Retaining Essential Environmental Fishing Structures Act' or REEFS Act) by US Representative Blake Farenthold and S. 1555 by Senator David Vitter/H.R. 3429 by Representative Steven Palazzo (the Rigs -to -Reef Protection Act). BACKGROUND AND FINDINGS: The U.S. Department of the Interior adopted the Idle Iron policy directive in October 2010 targeting offshore structures in the Gulf of Mexico and that have not produced oil or gas within five years of the directive issue date of Oct. 15, 2010. Of the estimated 3,500 oil and gas wells in the Gulf of Mexico, an estimated 475 structures have been removed in the last two years with another 200 slated for removal in 2012. In recent months, opposition to the Idle Iron policy has grown because it destroys artificial reef habitat that supports a complex marine habitat. Artificial reefs created by non - producing oil and gas wells are proven to enhance the fishery resources and commercial and recreational fishing opportunities. Enhancement of fishery resources is Page 1 of 3 considered to be the restoration or creation of habitat to improve recruitment and spawning potential of reef associated species, while enhancement of fishing opportunities is the creation or improvement of fishing opportunities. Tom Schmid of the Texas State Aquarium, Dr. Larry McKinney from the Harte Institute at Texas A &M University- Corpus Christi, and Skip Porter from the University of Texas Marine Science Institute in Port Aransas all support H.R. 6208 and have written an op- ed piece supporting the measure. ALTERNATIVES: The City Council has several options: (1) oppose the Idle Iron policy as recommended by City staff, (2) support the Idle Iron policy implemented by the U.S. Department of the Interior, (3) decline to support any or all of the federal legislative items, (4) support any or all of the federal legislative items, or (5) take no action on the Idle Iron policy and /or federal legislative items. OTHER CONSIDERATIONS: Congress is on recess until September 9. There is little time left for Congress to act during the 112th Congress which ends in January 2013. CONFORMITY TO CITY POLICY: The resolution is consistent with past actions of the City Council expressing support or opposition to legislative, regulatory and /or administrative proposals of state or federal agencies. EMERGENCY / NON - EMERGENCY: This is a non - emergency item. DEPARTMENTAL CLEARANCES: ACM — Business Support Services City Attorney FINANCIAL IMPACT: ❑ Operating Revenue ❑ Capital X Not applicable Fiscal Year: 2011- 2012 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s):n /a Page 2 of 3 Comments: RECOMMENDATION: Staff recommends adoption of the resolution opposing the federal regulatory action (i.e. Idle Iron policy) and supporting the two pieces of federal legislation — H.R. 6208 (REEFS Act) and S. 1555/H.R. 3429 (Rigs -to -Reef Habitat Protection Act). LIST OF SUPPORTING DOCUMENTS: 1. Draft City Council Resolution 2. Corpus Christi Caller -Times column by David Sikes, August 1, 2012 3. Copy of H.R. 6208 by Rep. Blake Farenthold (REEFS Act) 4. Copy of S. 1555/ H.R. 3429 by Sen. David Vitter & Rep. Steven Palazzo Page 3 of 3 Page 1 of 2 Resolution Opposing the U.S. Department of the Interior's Idle Iron policy and supporting the proposed REEFS Act and the proposed Rigs to Reef Habitat Protection Act. Whereas, the U.S. Department of the Interior issued the Idle Iron Policy directive ( "Idle Iron ") on October 15, 2010, directing removal of oil and gas platforms, rigs and associated structures ( "rigs ") in the Gulf of Mexico for wells that have not produced oil or gas within five (5) years of the directive's issue date. Whereas, during the past two years, approximately 475 rigs have been removed from the Gulf of Mexico pursuant to Idle Iron and more than 200 additional rigs are scheduled for removal in 2012. Whereas, the Artificial Reef Act of 1989, known as "Rigs -to- Reefs," was passed to promote and enhance the artificial reef potential off the Texas coast of the Gulf of Mexico. Whereas, U.S. Representative Blake Farenthold (Texas) filed House Resolution 6208, "Retaining Essential Environmental Fishing Structures Act" ( "REEFS Act "), on July 26, 2012, to limit the authority of the Secretary of the Interior to require or authorize removal or movement of offshore rigs. Whereas, U.S. Senator David Vitter (Louisiana) introduced Senate Bill 1555 on September 14, 2011 and U.S. Representative Steven Palazzo (Mississippi) introduced House Resolution 6208 on November 15, 2011, collectively the "Rigs to Reef Habitat Protection Act," to limit the authority of the Secretary of the Interior to require or authorize removal or movement of offshore rigs. Whereas, the Corpus Christi City Council believes that the rigs in the Gulf of Mexico are beneficial for the Gulf of Mexico and Corpus Christi in that they are the basis for a thriving artificial reef ecosystem that sustain a variety of marine life and should not be removed. Whereas, this resolution aligns with the City Council's goals of paying special attention to our unique environment. Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. The City Council, as the governing body of the City of Corpus Christi, opposes the U.S. Department of the Interior's Idle Iron policy and supports the proposed REEFS Act and the proposed Rigs to Reef Habitat Protection Act. This resolution takes effect upon City Council approval on this the day of , 2012. Resolution Idle Iron 8 -3 -12 Page 2of2 ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Joe Adame Mayor Corpus Christi, Texas of , 2012 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Kelley Allen Larry Elizondo, Sr. Priscilla G. Leal David Loeb John E. Marez Nelda Martinez Mark Scott Resolution Idle Iron 8 -3 -12 Outrage mounts over Gulf oil rig removal policy : Corpus Christi Caller Times CORPJS CHRISTI, TEXAS ri r to r iris€ €. Read more at calleracorn Outrage mounts over Gulf oil rig removal policy By David Sikes Wednesday, August 1, 2012 CORPUS CHRISTI — Outrage over the U.S. Department of Interior's wanton removal of retired oil and gas platforms in the gulf is finally approaching an appropriate pitch. U.S. Rep. Blake Farenthold filed a bill this past week that would halt the removal by explosion and other means of these rich offshore havens for protected corals, fishes and other marine animals. Farenthold's simple and straightforward bill calls for a two - year moratorium until federal fisheries managers and the DOI can re- evaluate the destructive practice and examine the benefits of leaving the rigs in place. This comes on the heels of a letter from the Congressional Sportsmen's Caucus to Secretary of the Interior Ken Salazar also asking for a two -year moratorium on the DOI's destructive Idle Iron policy. In addition to Farenthold, the letter carries the signatures of 19 other members of Congress from both parties and 10 states. Farenthold and Texas Gov. Rick Perry earlier sent separate letters to Salazar denouncing the policy. Hopefully recent developments will stop the bleeding long enough for a reasonable review of this misguided policy, which requires all non producing rigs be removed from the gulf. In many cases these steel structures have been in place for decades providing shelter for hundreds of fish species and generating billions of dollars in recreational fishing and diving revenue. These underwater ecosystems are well established with a biodiversity and abundance of life that rivals or exceeds that which is found on natural coral reefs. Texas Parks & Wildlife is funding a two -year study by the Harte Research Institute for Gulf of Mexico Studies to inventory the marine life on rigs at various depths. The study should conclude what we already know. The Interior Department seems to stand alone in defense of its policy to rip these rich habitats from the gulf floor, leaving nothing behind. During the past two years about 475 oil and gas platforms have been removed and more than 200 additional rigs are scheduled for removal this year. The list of vocal opponents includes the Coastal Conservation Association, Saltwater - Fisheries Enhancement Association, Environmental Defense, the Harte Research Institute for Gulf of Mexico Studies, renown oceanographer Sylvia Earle, the Gulf of Mexico Fisheries Management Council, the Port Aransas Boatmen and a growing number of federal legislators. http: / /www.caller. com/news/ 2012 /aug /01 /outrage- mounts- over - rig - removal - policy / ?print =1 [8/3/2012 1:57:32 PM] Outrage mounts over Gulf oil rig removal policy : Corpus Christi Caller Times A federal bill called the Rigs to Reef Habitat Protection Act filed by U.S. Sen. David Vitter (R -La.), with a complimentary House version by Rep. Steve Palazzo (R- Miss.) also calls for platforms to be left in place if it is determined they harbor protected or valuable marine life. Currently there is inadequate evaluation prior to removal of what the Department of Interior ignorantly considers marine debris. And recently the Congressional Sportsman Caucus, a bipartisan coalition of nearly 300 members of Congress representing nearly all 50 states submitted an amendment to the 2012 Farm Bill called the Sportsmen's Act of 2012. This included a provision that would have slowed the rampant destruction of platforms, while demanding the National Marine Fisheries Service (or NOAA Fisheries) assess the potential impacts of destroying these valuable artificial reef habitats. Unfortunately the amendment did not survive. Earlier the Gulf of Mexico Fishery Management Council began a process that could result in declaring fixed petroleum platforms and other artificial reefs with the greatest biodiversity as essential fish habitat. It could be late next year before a decision is final on this. If the rigs do achieve the status of essential fish habitat the Department of Interior would be forced to involve NOAA- Fisheries in each removal. I'm not sure how the conflicting policies of two federal agencies would be reconciled. In June a coalition of marine conservation, tackle and boating industry groups called for a halt to the Idle Iron policy in its own letter to Salazar. And the Sportfishing and Boating Partnership Council, an 18- member committee established to advise the Department of Interior and the U.S. Fish and Wildlife Service on recreational boating and fishing issues and aquatic resource conservation issues, also sent a letter to Salazar calling for a two -year moratorium on rig removals. Let's hope this growing level of opposition and outrage for the policy is enough to overtake the Department of Interior's profound position of arrogance. © 2012 Scripps Newspaper Group — Online http: / /www. caller. com /news/ 2012 /aug /01 /outrage- mounts- over - rig - removal - policy / ?print =1 [8/3/2012 1:57:32 PM] AGENDA MEMORANDUM for the City Council Meeting of August 21, 2012 DATE: August 21, 2012 TO: Ronald L. Olson, City Manager FROM: Michael Barrera mikeb @cctexas.com 826 -3169 UPDATE TO CITY COUNCIL Automated Meter Reading Project Update — August 2012 STAFF PRESENTER(S): Name 1. Michael Barrera 2. Gustavo Gonzalez 3. Debbie Marroquin OUTSIDE PRESENTER(S): Name 1. 2. 3. BACKGROUND : Title /Position Assistant Director of Financial Services Director of Water Operations Director of Gas Operations Department Finance Water Gas Title /Position Organization This presentation will give a status update on the Automated Meter Reading Project. LIST OF SUPPORTING DOCUMENTS: Power Point Presentation - Automated Meter Reading Project Update — August 2012 0 Automated Meter Reading Project August 2012 update Michael Barrera, Assistant Director of Financial Services Gustavo Gonzalez, P.E., Director of Water Operations Debbie Marroquin, P.E., Director of Gas Operations ontc fltS ► Automated Meter Reading (AMR) Program Objectives/Benefits Conversions to Date Reliability CIP Expenditures Return On Investment Management Plan Next Steps b Mitigate workers compensation claims ✓ Average annual number of claims has dropped 62% from 34 claims per year prior to AMR to 13 claims per year post AMR with 5 claims shown for FY 2012 through January of 2012. ✓ Average annual dollars paid out for claims has dropped 12% from $46,060 per year to $40,568 peryear post AMR with $4,531 shown for 202 through Januaryf 202 . g Reduce risk associated with physical meter reading. Leverage technology to enhance customer service. Reduce costs associated with meter reading O Annual salary savings of $446,671 realized to date (1 5 FTEs). Be e New Meters -Replaced aged meter infrastructure provides for accurate readings of water/gas consumed Leverage Wi-Fi -Ability to leverage Wi-Fi system for other City uses - field personnel ability to record data entry in the field, security and observation cameras for PD, public access to Internet at Airport and the Convention Center. Technology -Provides technology that can be used for researching real time customer usage, monitoring closed accounts and identifying illegal consumption and theft. Data Analysis -Captures data that can be used to identify patterns and trends for better management of water distribution system. ► Planned 0 147,554 meters were planned to be converted over a 5 year period (FY 2006 through FY 2010) Actual July 2012 - 152,867 of 1 53,81 3 meters in system have been converted to date. 946 .1 non -converted meters 2 AMR meters system reads percent of AMR meters transferring or billing purposes January 2010 97% reliability - acceptable/manageable 2 1/2 Year Trend August 2012 93% reliability - problematic, but improving 100% 95% 90% 85% 80% 75% 70% Reliability I 8 0 4-, I it 1- cci < i 0 = = —1 —1 0 I 8_ NJ CCS < pend Project Budget - Years 1 through 5 $30,942,071 -includes meters, registers, meter pits, composite lids, valves, fittings, meter transmitting units, data collection units, system software, system installation and project management services. ► Actual Expenditures - Years 1 through 5 $30,816,231 Reduction o a ► Planned - 29 of 45 (27 field personnel and 2 customer service representatives ) FTEs located in the Utility Field Operations Budget were planned to be eliminated by July31, 2012. Today - 15 of 45 FTE's eliminated, August 2012. ► Proposed - 25 of 45, eliminated by July 31, 201 3, with no further reductions planned. ur ► Planned as of Last update, February 2009 - $2,848,244 positive ROI over 20 year life. Today - August, 201 2- ($2,441 ,946) negative ROI. ► Proposed -$954,948 positive ROI over 20 year life ► Consolidation of UFO staff into Water and Gas Department Operations ► Revamping of processes to gain efficiencies ► Dedicated employees to address maintenance issues ► Smart Meter Manager assigned to program with monitoring and strategy responsibilities eps Continue to convert remaining meters 946 meters remain to be converted - Water and Gas Departments are completing these conversions. Utility Field Operation staff are reporting to the Utility Departments and working on these issues as well. System Maintenance Continue trouble shooting of meter transmitting unit (MTU) communication errors/wiring errors (no reads), vandalism - Water and Gas Departments have assumed this role as part of their day-to-day maintenance operations and have stopped the decline in reliability. Annual Meter Audit Physical read of meter/review of conditions at meter - Core group of field personnel under the administration of the Water and Gas Departments will obtain an annual physical meter read of each meter for quality control/quality assurance purposes. Evaluate AMR System 0 Keep abreast of available upgrades and enhancements that will keep us on the leading edge of technology Evaluation of Staffing Requirements Continue to leverage technology for possible further reductions in staff. AGENDA MEMORANDUM for the City Council Meeting of August 21, 2012 DATE: August 14, 2012 TO: Ronald L. Olson, City Manager FROM: Michael Morris, Director of Parks and Recreation UPDATE TO CITY COUNCIL — 2012 Parks, Recreation and Open Spaces Master Plan STAFF PRESENTER(S): Name 1. Michael Morris OUTSIDE PRESENTER(S): Title /Position Director Name Title /Position 1. Lloyd Lentz Senior Planner BACKGROUND : Department Parks and Recreation Organization Halff & Associates Halff and Associates will be updating City Council on the current status of the Parks, Recreation, and Open Spaces Master Plan. LIST OF SUPPORTING DOCUMENTS: Presentation TAB, City Austin Brownsville San Antonio Victoria Waco BENCHMARK PARKLAND PEI? 2010 # of Net Park Park Population* Parks Acreage** Sites/ ,000 Residents * Source: 2010 US Census * Developed pork acreage, not including golf courses, bcsed on inforr aii 7 0 90 175.233 62,592 124 5 187 30 236 15 60 1 1,534 1. 00 0 6,42 650 1,200 0.24 0,17 8 0.24 0.49 .00E RESIDENTS Developed Park Average Acreage/'1,000 Acres/Site Residents 14.6 6.3 4.8 10.4 9.7 61.68 36.67 27.20 32.50 20.00 n provided by City. Planoach trim Park Planning Areas Mi Nark FEnrn:ri., Alien 1 f�c;rk ,1666k,.n,^ry ATea 2 31L park Nana n.Q A4646 4 ! Park d -%f3 r}Ilin* Kie`ap +s Pork Prawn ro ; 44646 P ■! park Jam -tang An3i0 7' Legend 1. Bring Greater Efficiency and Value to Park Development and Maintenance 2. Enhance the Experience of Visiting Parks and Recreation Facilities for All Residents 3. Increase Recreation Opportunities and Activities 4. Acquire New Park Land for Future Development In A Strategic Manner over the Next 8 Years ilities that are not well used, or do not provide significant recreation _.opportunities, Should be New Maintenance Standards TABLE 70 CORPUS CHRISTI PARKS STANDARDS OF CARE LEVELS Core Business Defined Tasks Level A Level B Level C Level D Inspections Daily Daily (Mon -Fri) Weekly Mow 7 Day 14 Day 21 Day Monthly Seasonally {trails, playgrounds, picnic units) Natural Areas SeasonaRy (trails. interpretive center) Aerify Annual Seed/Sod Winter overseed Cycle (with rye grass) Pest Control Annual pre. -emerge, preventive spray program Fertility Annual Natve grass seed 1Plv`i spot treatment Wildflowers every other year IPM spot treatment Wildflowers every third year Selective grass suppression in wildflower zones Wildflowers once - / 1000 sq tt during growing season 50% water insoluble Irrigation Smart automated Litter Daily 711 / 1000 sq ft during growing season 50% water insoluble Automated Minimal macronutrients N/A Selective gross suppression in wildflower zones N/A ally n-fri) No irrigation Bi Weekly N/A Weekly 0 CS Receptacles Daily Daily (Mari -Fri) Bi Weekly Weekly Facilities Daily Shade Trees Annual attention Palms Twice annual Pest Control Preventive and reactive IPM t Fertility Horticultural Displays Liquid foliar teed, complete with trace elements, monlhly N/A Three year rotation Annual Preventive and reactive [PM N/A Five year rotation Annual Reactive N/A Ordinance driven Every other year Reactive N/A Public areas daily, wilascopes by volunteers Public areas daily, wildscopes by volunteers N/A None Never None Time released complete. quarterly Annuals with 3 Native perennials rotations, perennials including tropicals Care of Weekly Display's Monthly None None None Wildflowers None Wildflowers Wildflowers None None TABLE 57 NEW PARK CLASSIFICATIONS Park Type Acreage Criteria Service Area Radius Niche 1/4 mile > 50 acres 10 miles Entire Cit Bay/Beach Citywide A.,-,71,7 la%c e '�'• o-mt ArIlg�s�a=„. ea.xu:sw ss PA% YffF LOT fkkg.%, :-4! Major Investment Parks scnu�a e' uroms i s 6PF'E�'4cflP.<hmC rxptl'a €:HIGAFN'S 104 WA' I.ns'XFS'.-.gi' $Sb`APPakai'F eyt..'fPP na Sty flI iii T. PAftiNy' —.125 CAWS AC'PiV[ FOAIC cc= rA„x w -w 9,41,E TAELI vO6ae ."W IN PLAY AV€.A .14411. rPOIM OFDi a V#,s 1 1 1( 84.27 Acres Re p u r e os e d < 4% of Existing Park Land V' 27 Sites 1' 12% of Existing Park Sites a nd PoPk,_v. ■ v TABLE' 5- C PU CHRISTI PARKS AST€R PLAN RE EAT1 N AND FAQ Ronk Master Plan Recreation Priorities 1 ',Noting, jxjgir,g, bieycling 1 SAv mming wafer play 2 'icriickirig 2 3ird ucatc-iing, nDture study 2 ilness clos e: gnd progrgmm 3 V...Uic, dance, [heater 4 Canoeing aid kayoing 5 =e5 ivf's (]rid spceial events 6=i>hinr - satrtvarer 'loygrbun€ s end ploy e.quip-Yient 'Parks to Standards." Improvements Recreation Development Priority ty infrastructure Improvement aor Name TABLE 68 - Park Planning Area West Guth Regional Park 1 Ben Garza Community Park 2 Lindale Community Park 2 Salinas/Garcia Sports Complex 2 Parkview Community Park 3 Cole Park* 4 Brockharnpton Community Park 5 Capt. Falcon Community Pork 5 Cullen Community Park Lincoln Comer unity Park Schanen Community Park St. Andrews Community Park Bill Witt/Oso 1 Regionai Park. Parker Community Park Waldron Community Park 5 5 5 5 AJIZ INVESTMENT EN BARBS Acres Community Primary Regional Special Use Park Community Park. Park Park 80.0 10.9 10.9 156.9 11.5 43.0. 20.0 29.3 17.9 111,6 18,0 30.6 80 6 13.74 6 20.0 Billish Community Park 7 11.2 Commodore Community Park 7 19.0 Cole Park will have Community Pork Components, in addition to its role as a showcase bay front park. Major nvestrrlent Parks Non -major investment community parks or Investment Parks 3 Mlle Service Radius 5 Mile Service Radius S City Pork • Golf Course ❑ State/County Park City Limits ❑ ETJ Limils Itsdastrai ■ Existing Trails — 20.25 Miles ■ Existing Bike Lanes — 46.5 Miles ■ Priority Trails — 52 Miles ■ Opportunity Trails — 26 Miles ■ Total Trails f Lanes —175 Miles Legend Proposed Trails EXISTING TRAIL ••••• PRIORITY TRAILS OPPORTUNITY TRAIL CORRIDORS Sustainability Plan Proposed Trails - EXISTING BIKE LANES EXISTINS HIKEIRIKE TRAIL --- PRIORITY HIKEBIKE TRAIL OPPORTUNITY ----- POTENTIAL HIKE/BIKE TRAIL OPPORTUNITY •---• POTENT3ALONSTREET BICYCLE CONNECTION Sustainability Plan Nodes Ciiy Park Golf Course D State/County Park ...._ City Limits • ETJ Limits . Proposed Trail Recommendations GRAPHIC SCALE • Planning Commission - August 29th • City Council — September 18th and 25th